June 21, 2013

Finding an acquisition opportunity that keeps your business’ idea intact

As the leader of a technology company, it is very likely that you offer a product or service designed to assist consumers in an increasingly digital world. However, M&A activity can present itself as an opportunity for you to move on to other entrepreneurial opportunities. When this occurs, it is important to ensure that a technology acquisition will not only aid the purchasing company in its growth, but that it will allow you to continue to serve your customers.

Even if your organization is being purchased, you can work with a team of experts, such as investment banking firms, to ensure that a company with complementary ideals is found. That way, you know that your product or services will still reach clients.

Tyco set to acquire Exacq, will improve video technology offerings

Two companies that have found such an opportunity are Tyco and Exacq Technologies. According to a press release, with Tyco's eventual purchase of Exacq – a developer of open architecture video management systems – the firm can improve what is has to offer in the video security market.

"The addition of Exacq to our video portfolio expands our best-in-class video solutions," Mike Ryan, president of Tyco Security Products, said in a press release. "The quality of Exacq's products coupled with ease of use and ease of installation help us address the needs of a very different type of video user than we do with our current portfolio.

Ryan added that the move will ensure that the varied needs of a wide customer base will be met and will put Tyco Security Products at the top of the industry.

Additionally, Tyco officials said that they expect the new business to generate $75 million of revenue in fiscal year 2014.