Acquisitions
often make investors nervous, as the temptation/risk to overpay is so
high and there are reams of research indicating that most deals
destroy shareholder
value for the acquirer. By the same token, sometimes M&A is
the only way to fill a product/technology gap and position the
company for future growth. While Cisco
(Nasdaq:CSCO)
shareholders are certainly going to hope that the deal for Meraki
advances Cisco's software-defined networking (SDN) strategy, the
price tag is going to cause more than a little wincing.
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