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Price is No Object in Silicon Valley’s Race for Technology Dominance

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May 8, 2014

A new study by PrivCo, a data and information provider, ranks private company acquirers by number of acquisitions in 2013. Silicon Valley tops the regions for acquisitions and YAHOO! was the top acquirer last year. It also paid hefty multiples for its purchases, according to Privco. For example, YAHOO! paid USD 1.1 billion for Tumblr, which was an 84.6x multiple of the target’s previous year’s revenue. Google was number two with 19 deals. And Autodesk, which has a very long and very active tradition of acquiring rivals and innovators, was number three with 11 deals. The tech M&A is enabled by the high stock prices of publicly traded tech companies who can use their stock as currency for expensive acquisitions. That being said, coming in at number nine was a PE investor, Marlin Equity Partners, which was actually tied in 2013 with IBM, Groupon and Twitter in number of deals done. See more here. (Image source: Privco)

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