Feeds

Telecomms deals spin up billions of dollars

A 1000 per cent leap in average deal value in the US alone

  • alert
  • submit to reddit

High performance access to file storage

Merger mania hit the telecomms sector in the first half of 1999, according to Broadview's Technology M&A Report. Global acquisition and consolidation deals jumped 40 per cent from 295 in the first half of 1998 to 414 in 1999. North America saw 261 deals in this sector, up from 208 for the same period in 1998. Over a two-year period from 1997 to 1999, the value of telecomms deals in the US ballooned over 1000 per cent from $10.7 billion to $128.5 billion in 1999. Globally, the value jumped over 66 per cent to $271.5 billion. Paul Deninger, Broadview chairman and CEO, said efforts to build customer bases, expand geographically and improve services continued to fuel acquisition. "This trend can be expected to continue into the second half of this year," he said. "Buy or Die" is the rule in the networking field, according to Broadview. This sector saw the steepest growth in deal value, rising 71 per cent to $10.6 billion, with the number of deals up 420 per cent from just five to 24. Hardware deals were spurred on by next-generation communications networks development, yet their numbers stayed flat. The value of global hardware deals rose 125 per cent to $100 billion, with the number up only three per cent at 331. Broadview's results pinpointed Cisco, Lucent and Nortel Networks as candidates actively snatching up-and-coming technology companies. It also said these companies were investing in more developed companies to study their R&D, and then buying them out completely within two years. It used Cisco's $407 million acquisition bid for Transmedia Communications as an example. It said the competition between Cisco, Lucent and Nortel to become the top supplier of infrastructure to telecomms and cable companies had driven acquisition growth in the area. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.