This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Tech Hitting the M&A Trail

The networking space also offers rich pickings, according to the analyst, who highlights switch maker F5 Networks (FFIV), and Wide Area Network (WAN) optimizer Riverbed (RVBD) as particularly attractive. With firms pushing more and more data across global networks, there is a lot of interest in WAN optimization, but Gruia feels that Riverbed's $1.62 billion market cap could be a deterrent to potential suitors.

F5 Networks would be even more expensive, with a valuation of $3.2 billion, although Gruia also likes Aruba (ARUN) and Starent Networks (STAR - Get Report).

"Starent are strong competitors in the mobile content space," he said, speculating that they could be a good fit for Juniper (JNPR - Get Report) or Cisco.

Two names, however, are popping up repeatedly in tech M&A discussions.

"Brocade would make sense for H-P because it would give them storage networking and high-end IP networking," said Gruia.

451Group analyst Brenon Daly echoed this sentiment. "What do H-P and Brocade both have in common? They both square off against Cisco," he explained. "Brocade is a key component of networking infrastructure."

Both H-P and Brocade declined to comment on the rumors linking the two firms when recently contacted by TheStreet, although storage certainly seems to be a busy space.

NetApp, for example, has also been generating plenty of buzz after losing out to EMC (EMC) in the tussle to acquire Data Domain (DDUP).

One company said to be eyeing a storage play is Dell. Praveen Asthana, the firm's vice president of enterprise storage, would not rule out M&A in an interview with TheStreet earlier this week.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
ADBE $75.85 0.00%
BRCD $11.70 0.00%
JNPR $27.07 0.00%
NTAP $36.71 0.00%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs