For M&A Opportunities, All Eyes Are on Robotics & Automation

By Jeremie Capron via

Mergers and acquisitions have a history of providing unique investment return opportunities to stockholders of companies that are acquired. Once a company becomes an acquisition target, it’s almost inevitable that its stock price jumps, often by as much as 20, 50, or even 100%. While this is true in nearly every industry, M&As in the technology sector have proven particularly fruitful for investors with each new wave of innovation.

The rise of the Internet brought the largest-ever technology merger when AOL bought Time Warner in 2002. The personal computer “war” spurred HP to acquire Compaq and EDS. The desire to expand into mobile technologies drove Google to snap up Motorola Mobility and HP to jump on board with its purchase of Palm. Most recently, the desire for cloudand big data technologies has led to a long list of acquisitions by companies like Microsoft, Facebook, IBM, Oracle, and FICO. The next wave, of course, is Robotics, Automation and AI (“RAAI), and the buying frenzy is already in full swing.

This week offered another perfect example. On Tuesday, trading was halted in Rockwell Automation (ROK), a bellwether member of the ROBO Global Robotics & Automation Index, following rumors of an acquisition by Emerson Electric.

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