Thursday, October 28, 2004

BW Online | July 9, 2004 | Software Makers: Soon They'll Be Fewer

BW Online | July 9, 2004 | Software Makers: Soon They'll Be Fewer: "Business-intelligence specialists like Business Objects (BOBJ ) or Hyperion Solutions (HYSL ) would make sense paired with a broader application provider like Microsoft, SAP, or Oracle, investment bankers say.
Software companies will have to work hard to make sure deals don't create more problems than they solve. 'The track record for such deals in the IT sector is horrible,' warns Heap, the Bain merger consultant. These deals are difficult to execute because they often force the acquiring company to enter a new and unfamiliar market. Acquirers have one thing working in their favor this time around, however: The price of target companies has fallen since the '90s boom, reducing the risk of overpaying. And given the passage of time, it's easier to evaluate the strength of a company that's being acquired. Consolidation won't be a panacea for software's woes, but it's bound to help the industry adjust to the realities of a maturing market. "

1 comment:

Gexton said...

"Business-intelligence specialists like Business Objects (BOBJ ) or Hyperion Solutions (HYSL ) would make sense paired with a broader application provider like Microsoft, SAP, or Oracle, investment bankers say.
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