YOWZA: Tech Companies Spent $20 Billion Acquiring Software Firms Last Quarter

girl, cash, money

Photo: Flickr / stevendepolo

This must be a good sign for the economy.Last quarter, 375 software companies were acquired and their buyers spent a healthy $20 billion overall, 10 per cent more than the year-ago quarter.

So says Berkery Noyes in its quarterly M&A report. The largest deal — by far — was Cisco’s nearly $5 billion purchase of NDS Group.

There were three hot areas where the most deals took place:

Software used by financial firms, particularly those serving the capital markets. These accounted for 11 deals and the largest was SS&C Technologies Holdings’¬† buy of Thomson Reuters’ PORTIA business for $170 million.

Cloud computing. Oracle’s acquisition of Taleo for $1.9 billion was the biggest. But other deals were sizable, too, such as Symantec $115 million acquisition of LiveOffice.

Security. There were 75% more security-related deals than in the previous quarter, Berkery Noyes says. Symantec bought Nukona and Odyssey Software. With three acquisitions it was the big spender of the quarter. But there were some surprising moves, too. For instance Twitter bought Dasient. Terms were not disclosed.

Here’s the chart of the Top 10 biggest deals of the quarter.

Top 10 software acquisitions in Q1 2012

Photo: Berkery Noyes

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