Companies operating in the technology sector have experienced a significant uptick in demand for their products and services over the past few years. International Business Machine (IBM) plans to fuel its future growth in its software division through mid-sized acquisitions, according to a high-ranking company official.IBM vice president Steve Mills said in an interview this week the company could spend upward of $300 million on acquisitions to augment its $22.5 billion software business. Even amid a tepid economic climate, IBM chief executive Sam Palmisano is bullish on the firm's future growth prospects, asserting he is seeking to increase revenue by an additional $20 billion per year by 2015.
The New York-based company, which recently surpassed Microsoft as the world's second biggest technology business, hopes the firms it acquires will contribute to business cost reductions in the long-term. What's more, company officials want the newly acquired firms to boost sales and add to total earnings within two to three years, Bloomberg reports.
"Everything’s got to fit," Mills said of the acquisition targets. "No spurious, off- to-the-side, unrelated things."
IBM generated just under $100 billion in sales in 2010.
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