Tech Companies Spend More on Fewer Acquisitions, Study Says

Technology companies are showing their preference for making big acquisitions over doing many smaller ones, according to a report from PricewaterhouseCoopers.

The number of technology deals in the second quarter decreased 35 percent, while total spending increased 19 percent compared to the same period last year, the report said. The consulting firm’s 2011 report showed a similar trend compared with 2010, though the change was slightly less dramatic.

From April to June of this year, tech companies spent $31.8 billion in 55 deals, which is an average of $578.2 million per deal, the report said. During the same time last year, $26.8 billion was spent in 85 deals, averaging $315 million.

The biggest deals in the second quarter of this year included SAP AG’s $4.3 billion takeover of Ariba and Microsoft’s $1.2 billion purchase of Yammer.

Merger-and-acquisition teams at tech companies do not appear to be taking a summer vacation, either. At least half a dozen deals worth more than $6.1 billion were announced on a single day last month.

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