Motivation And Performance Analysis Of Technology M&A In The Internet Of Things Field

With the continuous development of science and technology,a new round of scientific and technological revolution and industrial transformation has brought continuous changes in the product life cycle,and enterprises are facing the pressure of technological innovation and product innovation.Due to the long internal R&D cycle and high risk,enterprises are increasingly inclined to rapidly acquire advanced technologies at home and abroad through technology mergers and acquisitions,including Internet of Things enterprises.At present,the Internet of Things industry is developing continuously driven by 5G technology,and its market scale will reach 2630 billion yuan in 2021.However,Io T enterprises are also facing challenges such as supply chain disruption and rising costs,and the competition in the industry is becoming increasingly fierce.As a result,more and more enterprises have entered the Internet of Things and improved their market competitiveness through technology mergers and acquisitions.This paper selects the case of the acquisition of Sunray Electronics,Kanglida Connectek IOT and HOP Technology.It introduces the background,subject and target of the technology acquisition and the process of the acquisition.On this basis,it discusses the motivation of the acquisition and various risks faced after the acquisition.At the same time,this paper makes a longitudinal comparative analysis of the relevant data of Super Telecom from 2017 to 2021,and some of the data are also made a horizontal comparative analysis with companies in the same industry,to evaluate the overall performance of this technology acquisition of Super Telecom from four aspects: innovation performance,market integration effect,financial performance and market response.The research results of this paper show that: first,the external drivers such as the national policy promoting the development of the Internet of Animals,the continuous improvement of the concentration ratio of the communication technology industry,and the internal drivers such as breaking the development bottleneck,optimizing the customer structure,acquiring key core technologies,and building the entire industry chain of the Internet of Things jointly drive the technology mergers and acquisitions of Super Telecom.Secondly,the acquisition of Super Telecom failed to improve its overall performance.In terms of innovation performance,its R&D investment and output have not significantly improved compared to enterprises in the same industry;In terms of financial performance,all three target companies have failed to meet their performance commitments,and their Io T business revenue and net profit have significantly declined in 2021,resulting in significant losses in their operations;In terms of market integration effect,its Internet of Things business market share is very small and has declined significantly,the problem of high customer concentration ratio has not been solved,and the loss of old customers is serious;In terms of market reaction,this technology acquisition has brought negative short-term and long-term market reactions.Thirdly,The merger and acquisition of Super Telecom has problems such as deviation from the focus of technological research and development,inadequate risk control,insufficient financial preparation,and weak management level..This paper’s research on the case of the merger and acquisition of Super Telecom not only enriches the current research on the technology merger and acquisition in the field of the Internet of Things,but also provides reference for the technology merger and acquisition decision-making in the field of the Internet of Things and other industries.