• Heady days for tech sector 15 years after bubble burst

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    NEW YORK: Fifteen years after the bursting of the dot-com bubble, the tech sector is flying high again, with record amounts of cash pouring in, and renewed fears about inflated valuations.

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    A survey by the EY (formerly Ernst & Young) group counted 3,512 mergers or acquisitions in the tech sector in 2014, for a total value of $237.6 billion, the highest figure since 2000.

    The report said the outlook for deals in 2015 remains “robust.”

    There are no signs the trend is slowing.

    “Tech investment bankers have told us that their pipelines are fuller than they’ve been in years, while corporate development executives indicated they expect to be even busier shopping this year,” said Brenon Daly, analyst at 451 Research.

    The 451 Research report suggests more dealmaking is coming in hot segments such as mobile tech, security and cloud computing.

    Startups like Uber and Snapchat meanwhile have seen their values soar with new capital inflows.

    Thirty-eight tech companies entered the billion-dollar club clast year, including 25 in the US, according to the research group CB Insights which tracks venture capital.

    Part of the euphoria around the sector also comes from giants like Apple, which broke all records with an $18-billion profit in the past quarter, and Chinese online group Alibaba, which raised a record $25 billion in its initial public offering.

    AFP

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