Technology acquisition by Acquiry is the process in which companies develop and purchase technologies that they believe will be valuable to their operation. In order for these acquisitions to be successful, there are many different things that companies must evaluate. Some of these items involve costs, while others involve whether or not the acquired technology is something that can be used internally or if it needs to be bought out and placed in the company’s R&D arm. Some examples of technology acquisition are:
A private firm could acquire another privately, or they could acquire a publicly traded company. Many private companies do this on a regular basis. They acquire technology that makes it easier to do work for their customers. A prime example is the cellphone companies, who acquire technology from other companies to help in developing phones for their own company. They also may carry out research and development projects to make existing phones more efficient.
Many large companies also participate in technology transfers. For instance, some businesses transfer technology to countries in which they have operations. This may be part of an overall acquisition or it may be part of a separate transaction. Many of the companies involved in such transfers decide to buy technology from foreign companies at high prices, then sell it back to their domestic or foreign customers.
A large number of organizations participate in technology acquisition through mergers and acquisitions. Sometimes a business will buy a technology and then become the buyer of a related technology. The same thing can happen when two companies combine. In addition to mergers and acquisitions, many organizations acquire technologies indirectly through licensing programs.
Technology acquisition can also take place through co-venture partnerships. This can either be between two different companies or between many companies. If a large corporation is involved in a venture, then some of the resources and profits from the venture are diverted to the acquiring company in order to finance its acquisition costs. Some examples of technology co-venture partnerships include ventures between technology companies that focus on information technologies, medical technologies, energy technology, computer technology, and communications technology. In many cases, the technology that is acquired through a venture partnership will become the main source of a company’s revenue.
Technology transfer can occur when a technology is transferred to a third party. This could be done through licensing programs, purchases, or acquisitions. Many large corporations have acquired technologies that are useful for their own business from other companies. Examples of these include the American company AT&T who purchases Bell Labs’ telephone system. Similarly, Microsoft purchased programming code from Compaq in exchange for reducing the price of the programming language.