When a company with tons of cash, yet short on growth wants to enter new markets, M&A is usually the quickest route to gaining access, and in some cases, market share in industries that would otherwise take years to build. And that seems be the strategy that International Business Machines (IBM) has adopted in recent years — albeit unsuccessfully. But now could be an ideal time to buy IBM shares.
The company, affectionately known as “Big Blue,” is now under a new regime, which, in my opinion, has an opportunity finally fix the company’s growth deficiency. I think one of the major steps would be to acquire Cloudera (CLDR), which has a strong portfolio of enterprises services for private, hybrid and public cloud platforms – many of which include databases, data processing, AI and machine learning tools.
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