With the Nasdaq still down  due to the Financial Crisis, tech valuations are relatively low so it's no wonder that companies with strong cash positions are on the prowl.

In the S&P 500 Index, the technology sector is expected to have the highest earnings growth of any sector in the second quarter at 15 percent, according to data from Thomson Reuters.

In Japan, where interest rates remain razor thin, high-tech glass maker Hoya Corp is eager to put its cash pile of about $1.5 billion to work and could spend up to $5 billion on acquisitions over the next few years.

But U.S. companies that need to raise debt to fund acquisitions could have a harder time as banks have turned much more cautious, executives said.
Venture capitalists said prudence was the word.

"In this environment it is extremely prudent ... to fully finance companies that have cash on their balance sheet, to be conservative, I would say for the next 2 to 2-1/2 years because we don't know where they're going to head in the next 12 to 18 months," said Navin Chaddha, managing director of Mayfield Fund.