When it comes to mergers and acquisitions, Cisco (NASDAQ: CSCO) is a pro. While some of its deals have failed, the fact remains that the company has built a global powerhouse via dealmaking.
However, last year was uncharacteristic for the aggressive Cisco; that is, the tech giant bought only four companies. Keep in mind that, in a typical year, the company will average a deal a month.
Well, things may change in 2009 (this is according to Barrons' Tech Trader Daily blog). All in all, it looks like Cisco will rev up the deal machine.
OK, so what might Cisco target? A key area is video.
This certainly makes sense. After all, video requires tremendous Net infrastructure. Plus, video is likely to be more attractive to corporate America. Ultimately, a video-meeting could be much more cost-effective than flying to meetings.
Oh, and it looks like the slowing economy may be a good thing. It should mean better valuations -- and more motivated sellers. And, Cisco has the firepower to get attention, with a whopping $27 billion in the bank.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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