|
|
Article: M&A IMPACT: IPOs MOVE OVER FOR M&As.
- Article from:
- Computergram International
- Article date:
- January 25, 1999
CopyrightCOPYRIGHT 1999 Datamonitor. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Although IPOs have been crucial in the creation of wealth in Silicon Valley, they are now taking a back seat as mergers and acquisitions rise in strategic importance. Acquisitions have become much more important than IPOs in the past five years, according to Steve Bengston, director of emerging company services at PricewaterhouseCoopers. An analysis by US venture capital (VC) consultancy VentureOne reveals the shift. In the first half of 1996, more venture-backed internet businesses went the IPO route than were acquired. But by the first half of 1998, acquisitions outnumbered IPOs by two-to- one. "IT companies are realizing that acquisitions bring technology and ...