Technology M&As to Keep Booming in 2007

Private equity and global market liquidity will prompt another year of buyouts-but what will be the impact on customers? (

Technology mergers and acquisitions are forecast to jump 40 percent next year, as private equity companies flush with cash increase their activities in the sector.

That increase would follow this years projected increase of 50 percent, says Eric Gebaide, a managing director at Innovation Advisors.

The New York-based investment banking firm recently released a report saying that global technology M&As would rise to $248.4 billion this year, the highest since $490.3 billion in 2000.

In recent years, there has been a surge in the number of private equity firms, which seek to buy companies, improve their performance and then sell them at a profit.

Hedge funds and venture capital firms have both gotten into private equity, bringing enormous resources and expertise to the area.

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