Software based companies are still buying rivals or start-ups who they believe will add value to their business. The global economic conditions slowed down the acquisition business in 2009 to a complete standstill. I am not saying the global recession is over but it is interesting to note that in the last few months, companies have aggressively looked at certain options to buy companies. Shareholders do want returns on their investments but also do not want reckless purchases which will hurt their nest egg.
A few weeks ago I wrote about HP buying Palm and earlier this week SAP announced that they will buying Sybase. SAP creates business software and Sybase does databases and in combination it will provide businesses with a mobile solution. SAP have made mobile a priority for their long term success. It is great to see that another big software business is beginning to realise that the mobile platform is the way to go.
The only problem with this transaction is that SAP overpaid for Sybase, which could lead to shareholder unhappiness and potential lawsuits.
