Wall Street Beat: Rise in markets could fuel tech M&A

Increasing confidence in the economy and a rising stock market could lay the groundwork for a revival in tech-sector mergers and acquisitions as companies embrace cloud technology and pursue game-changing software, particularly for the mobile market.

On Friday, the Dow Jones Industrial Average, the Standard and Poor’s 500 and the tech-heavy Nasdaq exchange all closed up for the week, marking three straight weeks of gains. Last week the Dow and the S&P broke through to milestone levels — 15,000 points for the Dow and 1,600 for the S&P.

Meanwhile the Nasdaq closed up 27.41 at 3463.58 Friday, its highest point since 2000, right after the dot-com boom started to go bust.

“Ultimately higher market values should result in higher valuations for sellers and thus result in more deals,” said Rob Fisher, PricewaterhouseCooper’s U.S. technology industry deals leader, in an email. “To the extent the rising markets are driven by confidence in long term fundamentals that also tends to increase the appetite of buyers who tend to shy away from deals when they have uncertainty about their existing prospects.”

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