Mergers and Acquisitions:IT Companies Up For Grabs?

Everyone wants a piece of the great idea that’s out there. If the trend of local companies investing in the small garage startups, then foreigners are not only keeping a close eye on the action, but are going to step in to grab a piece of the action.

Pakistan has never quite had a VC culture. The handful of companies that offered Venture Capital probably started and finished at TMT Ventures, the guys who funded PostAmazers and 2B Technologies. But all companies, including TMT Ventures, have had a large financial group behind them. Whether it’s AKD Trade, KASB or Jahangir Siddiqui, even fewer IT companies are being considered as investment. But young companies don’t necessarily need only financial support. A growing number of companies are offering mentoring or support in kind to enable small companies to survive through the tough times and ensure that the growth in the SME segment, can have some stability and significant increase in numbers.

The newer generation understands the power of Web 2.0. Companies with money are eyeing the success that ideas such as Citizen Journalism or mobile application development are having. It’s only a matter of time before the two meet.