It is no secret that many venture-backed startups would give their first-born children to be acquired.
That’s because the alternative is bleak. VCs are handing out cash slower than they have in a decade, and many companies without suitors are forced to close their doors.
Unfortunately for many of these partner-hungry startups, the deal flow also is at a low. In the first quarter, only 68 venture-backed companies were sold, down 35 percent from 104 a year earlier.
"People do approach us monthly, if not weekly" interested in being acquired, says James Beldock
That makes ShotSpotter’s deal announced Tuesday all the more worth looking at. ShotSpotter announced the acquisition of Planning Systems, a unit of QinetiQ North America, for an undisclosed amount.
“People do approach us monthly, if not weekly,” says James Beldock, CEO of ShotSpotter, referring to the stream of startups eager to sell themselves.
But instead of a deal simply to increase the company’s size, Beldock settled on a merger with hands-down strategic value.
ShotSpotter sells technology that enables police departments in cities around the country to pinpoint the location of gunshots. It uses sensors, as many as 20 per square mile, to continuously monitor troubled areas.
Planning Systems makes a similar technology for military and defense markets. And it has key sensor patents.
“It clearly is a buyer’s market,” says Beldock. And that buyer is more discriminating than ever.
Posted by Mark Boslet 
