On this topic Newsletters Wireless Watch. Although it has grown its business organically until now, Denver-based systems integrator Tanning Technology Corp. is planning acquisitions to take advantage of the low valuations of a large number of IT services companies. Houston-based Compaq Computer Corp. is also counting on acquisitions to help expand its Global Services business.
Some analysts see consolidation ahead in the services business.
A lot of them were frustrated that they didn't manage to get on to this tidal wave of everybody getting rich a year or two ago, and so they might be willing to sell just because they are tired, or because they see that they just don't have the resources to expand their niche. Most of the deals are likely to be in cash, however, rather than stock. The depressed stock prices cuts both ways. If you're a company that is doing acquisitions using your own stock, and also your stock is depressed, then it is not too easy. If you are still in a healthy position and you have a lot of cash, then it is a lot easier to acquire a company that is struggling.