KUHN CAPITAL Saturday, February 24, 2018
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The Little Engine


While we keep our heads down and hope the fierce winds blowing through Wall Street don't send a dust devil into our cul de sac, the little engine of IT M&A keeps chugging along.

Maybe that's because high deal leverage never characterized mid-market IT M&A, and because those titans of LBO finance have long since been relegated to the sidelines (where they belong).

Whatever the reasons, Thomson reports that for 2008 through August, the number of IT and communications deals announced was up 8%, from 988 for the same period in 2007 to 1,065.

Consistent with prior stats, in August the Software sector accounted for 33% of the deals, followed by IT Services (28%), Hardware & Systems (26%) and Telecom Services (12%).

We think tech M&A will continue its current buoyant course unless or until the US economy staggers into a deep recession. As bad as the headlines are, we're not there yet.

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