Terror attacks could stifle tech M&A.(mergers and acquisitions)

Byline: Olaf de Senerpont Domis in San Francisco

As financial markets reeled Sept. 17 in the first day of trading following last week's terror attacks, investment bankers and corporate dealmakers said market volatility and other aftershocks of the tragedy will significantly dampen technology mergers.

And for more on how the impact is affecting both sides of the Atlantic, see related story: Tech dealmakers in Europe fear the worst.

"While the reasons a lot of companies want to do acquisitions still hold, this is a period of such incredible uncertainty that companies will be trying to internally assess what all this means to them and their customers," said Kenneth Lamb, head of West Coast and technology M&A for CIBC World Markets.

Tech transactions were already on the wane before Sept. 11, when hijacked jetliners smashed into the Pentagon and the World Trade Center's Twin Towers. A general slowdown in the sector had already contributed considerably to a nearly 60% decline in U.S. M&A deal flow in the second quarter, compared with the feverish pace a year ago.