Shares digital

Software behemoth Microsoft's (MSFT:NDQ) eye-popping $44.6 billion cash-and-stock bid for Yahoo (YHOO:NDQ) may be grabbing all the headlines but merger and acquisition activity remains rampant all the way through the technology food chain. Both translation software expert SDL (SDL) and communications player Vyke Communications (VYKE:AIM) have just unveiled their latest deals.

SDL, which is due to report its preliminary results on 26 February, has snapped up US-based competitor Idiom Technologies for $26.6 million, including the target's debts. This is the Berkshire firm's fifth acquisition since 2005, and although Idiom is loss-making, SDL believes it can be brought to break-even in the first year of ownership and into profit thereafter.

The shares of SDL rose 1p to 236.25p on news of the move, while Vyke’s shares leapt 6% to 88.5p after the announcement of the firm's second strategic move within a month.

January saw the £44 million cap buy Callserve for £2.9 million in stock, and Vyke has now offered a maximum of £650,000 in shares for another UK-based firm, Ilios. In addition to an increased customer base, broader geographic reach and increased capacity, Voice over internet protocol (VoIP) specialist Vyke will also garner an additional £10 million in gross annual revenues and supplement an already impressive organic growth rate.

Shares says:

BUY SDL, already a global leader in its field

HOLD Vyke, which has potential but also still much to prove

by: Russ Mould