In California’s highly competitive tech industry, it can be difficult for smaller and mid-sized companies to compete with the likes of Google and Apple. Large companies that have dominated for years tend to absorb much of the local talent, while smaller startups in Silicon Valley struggle to get a leg up. Sometimes you have to get out of the Bay Area to expand your tech business footprint.
After all, new technologies like cloud computing and social networking are now being profitably utilized by businesses across the country, and mid-sized tech companies in California are increasingly looking in other states for acquisitions.
One place where California tech companies are going to acquire new business is Oregon. According to reports, the tech industry in that state saw nearly $7 billion in mergers and acquisitions in 2014, and that trend appears to be continuing.
San Ramon-based Accela, seller of billing, accounting and resource management technology to local governments, recently acquired Portland-based Springbrook Software, which also sells software to government agencies.
The deal comes a week after Novatel Wireless, based in San Diego, agreed to pay up to $50 million for Feeney Wireless, based in Eugene.
You can read about the specifics of the California-Oregon tech connection in a recent article.
It goes without saying that deals like these involve a complex array of considerations. What is the value of each business? Are the companies’ cultures compatible? What about workplace policies? Are all potential liabilities accounted for? How will the transaction be financed? Will management be restructured? Are there real estate issues?
If you’re considering the sale or acquisition of a business, then be sure to cover your legal bases by working with a full-service business law firm.