Technology Acquisition Examples

The 2024 tech market was dominated by strategic buyers who wanted to develop capabilities in mission critical subsectors, including artificial intelligence. Microsoft’s investment in OpenAI and Databricks acquisition) cloud and data analytics (i.e. Clearlake’s acquisition of Alteryx, and IBM’s acquisition of Apptio) and security (i.e. Cisco’s purchase Splunk and Rocket Software’s acquisition of Micro Focus). Technology vendors are increasingly focusing on creating a https://dataroom.blog/top-tech-driven-ma-companies-overview/ single technology stack that can meet their customers’ most complex demands.

To make a business’s strategy for technology acquisition work, the IT management team, senior engineers and other employees must have a strong « value culture » that focuses on making decisions that increase the value of the firm’s expenditure. Achieving this requires constructing competitive playing fields for the key areas of supply in the business and ensuring that the decision makers in purchasing do not let relationships rob them of leverage in negotiations.

In best practices the procurement team and the technology decision maker are on the same page throughout every stage of the technology purchase process. This helps them ensure that the purchasing decisions are guided by the business’s underlying need and not by the relationship with the vendor. This also helps in reducing expenses, since it makes sure that the buying team does not direct purchases to one specific supplier. In the event of a disaster, an unintentionally implemented process could erode a company’s negotiating power and lead to an overspending. This was evident in the Daimler Benz-Chrysler merger.