Semiconductor, Software Cross-Border M&A Heat Up, Communications Deals Cool, in First-Half 1996
SNew York, NY--July 30, 1996--Lofty stock prices and increased global competition fueled a 92 percent jump in cross-border acquisitions, joint ventures, and minority investments by semiconductor and software companies in the first half of 1996, according to KPMG Peat Marwick LLP. Nearly $3.1 billion in deals were announced in these technology sectors, compared with $1.6 billion for the same period last year. The number of announced transactions rose to 183 deals this year, compared with 174 in 1995.
Among the largest deals in the first half in these sectors were Japan-based Hitachi's $218 million purchase of Malaysia's LG Semicon, and Canadian-based Corel's $185 million buyout of U.S.-based Novell's Business Applications Division.
Separately, spending on semiconductor targets showed a 138 percent upturn, with $2 billion worth of cross-border deals. Software recorded a 39 percent increase, to $1 billion. In contrast to semiconductors and software, the communications sector experienced a sharp 60 percent decline in cross-border deal spending to $3.9 billion in first-half 1996, compared with $9.8 billion in the same period last year. The number of deals also declined, to 119 transactions from 141.
KPMG's quarterly study of cross-border deals is based on announced transactions. Figures for 1995 have been adjusted for pricing changes, deals that were not completed, and other factors.
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