Tech Companies Stay Close to Home for Acquisitions

Tech companies buy their neighbors much more often than they acquire companies elsewhere, according to a study of tech acquisitions since 2002.

The conclusion isn’t shocking. There are a number of reasons why a buyer would be more familiar with companies based nearby. They’re more likely to share investors, have employees who worked for both companies, or maybe the CEOs belong to the same golf club. But given the ongoing battle between East-Coast giant EMC (EMC) and Silicon Valley’s NetApp (NTAP) to take over another Valley company, Data Domain (DDUP), it’s instructive to see just how prevalent the preference is.

Since the beginning of 2002, publicly-traded tech companies based in California have bought 1,994 private companies, 36 percent of which have been based in the state, according to 451 Group, an analyst firm that tracks M&A activity. That’s about three times the rate that publicly-traded companies based on the East Coast bought California companies.

Read the rest of this post on the original site

Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »