According to a special report by SoftwareCEO.com - part of the Computing Technology Industry Association (CompTIA) - oftware mergers and acquisitions were down dramatically in 2008, and software initial public offerings (IPOs) did not fare much better.
The seventh annual report reveals that technology mergers and acquisitions (M&As) around the world dropped to $290 billion in 2008, down one-third from a year earlier. There were only six tech-related IPOs in 2008, down from 27 the year before.
“It’s always challenging to run a successful software company, but the second half of 2008 was especially tough,” said Robert Biddle, publisher of SoftwareCEO. “Neither investors nor customers want to part with any money in this economy. “In 2009, software companies need to protect their core value and be prepared to sacrifice everything else,” Biddle said. “Any companies that aren’t viable risk being acquired or going out of business.”