Tax Repatriation Sparks Tech M&A

Prediction:

As the United States struggles to get the national deficit under control, there will be increased pressure from Washington to do a tax repatriation holiday. Many tech firms such as Apple, Microsoft, Google, etc. have significant amounts of cash overseas.

Instead of using the cash to create jobs as Washington wants, tech companies are more likely to use the tax holiday to benefit shareholders and themselves.

That could translate to some sizable tech mergers, and cloud computing companies may see heavy demand. Some names mentioned in the past have been Salesforce.com ( CRM), Red Hat ( RHT) and Citrix Systems ( CTXS).

Review:

We've seen a decent amount of deals in tech space this year, with Google, Cisco ( CSCO), SAP ( SAP) Oracle ( ORCL) and others adding to their cloud computing offerings, but none of the companies I mentioned above were acquired.

Grade: C+/B-

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