So what is the latest hot topic among the software industry’s bigger companies these days? Acquisitions locally. Believe it.
Among the places I was present, this topic came up at Lunch in a CEO Forum in Islamabad last month, again at a Forum in Karachi on Raising Venture Capital about a week ago, and then a few times during a PASHA-supported Pakistani delegation to Singapore.
It seems like people can foresee a time in the short-term when bigger IT companies will start acquiring smaller ones to gain access to technology or markets to take them forward. This would be a pretty significant move. Think about it – this would provide the smaller players an exit strategy that doesnt involve IPO.
This means that over time investment funds that are time-limited could also begin to emerge in the industry. It also means that CEOs would hopefully (finally?) start thinking about raising valuation through creating better brands, more proprietary technology, better domain ownership, rather than simply trying everything that can increase revenue alone.
It seems though, that its already happen on the level very small companies acquiring other small companies. One such recent example has been DevNext Solutions — a tiny dev shop by the people behind Mulazamat (which seems abandoned now) — being acquired by Nuvica Inc. Read here.
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