High-tech acquisitions by low-tech firms: Does acquirer experience count?

Maria Ihamuotila, Eva Liljeblom, Benjamin Maury*

*Motsvarande författare för detta arbete

Forskningsoutput: TidskriftsbidragArtikelPeer review

Sammanfattning

We study whether experience matters for acquirers in non-tech sectors when conducting acquisitions of high-tech targets. The topic is motivated by the rapid development of advanced and digital technologies that has fuelled tech-related M&A volumes, where companies seek high-tech targets to substitute or complement their own R&D and to stay competitive. Studying 1146 tech-oriented deals announced by European acquirers during the period of 2006-2019, we find the acquirer investors to be clearly optimistic about such takeovers, with positive and significant two-day cumulative abnormal returns of 0,82%. We also find that industrial acquirers seem to gain substantially. Lastly, one-time buyers were found to experience significantly higher cumulative abnormal returns than frequent buyers, and frequent buyers to exhibit a weak declining return pattern in subsequent deals. This implies that companies get rewarded for acquiring digital technology, and especially so in their first initiative to digitalize their business.
OriginalspråkEngelska
Referentgranskad vetenskaplig tidskriftNordic Journal of Business
Volym70
Utgåva3
Sidor (från-till)163-183
Antal sidor21
ISSN2342-9003
StatusAccepterad/Presslagd - 16.03.2021
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift

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