THREE THINGS TO KNOW ABOUT: M&As AND TECHNOLOGY

MERGERS AND ACQUISITIONS ARE A KEY growth strategy for companies - and we may see an uptick in such activity, given expectations of less-stringent antitrust regulation from the new U.S. administration.

- - Kaushik Viswanath

For technology-focused companies, here are three findings from recent academic research that should inform their leaders' decision-making as they consider M&A opportunities:

1. Mergers driven by consolidation boost technology deployment.

Do mergers boost companies' technological progress? It depends on the motives behind the merger, according to researchers. A study of mergers in the U.S. telecommunications industry found that those driven by consolidation and market exploitation motives have a positive effect on technology deployment at the merging companies.