SAN FRANCISCO (Bloomberg) - The pace and size of acquisitions in the technology industry will return to "robust" levels this year after the value of deals dropped by more than 50 percent in 2009, according to a report by PricewaterhouseCoopers LLP.

Hardware, Internet and chip companies will be especially active buying smaller businesses, Todson Page, a partner with the consulting firm's transaction services group, said in an interview.

There were 107 technology takeovers in the US last year, with a total value of $36 billion, PricewaterhouseCoopers said. That compares with 195 deals, totaling $77.2 billion, in 2008. Acquisitions will probably return to 2008 levels this year, spurred by low interest rates, the strength of acquirers' balance sheets and valuations that make companies more willing to sell, the firm said.

"Technology M&A will be much more robust in 2010," Mr. Page said in an interview from San Jose, California. "Semiconductor companies with a strong balance sheet will buy up their weaker or smaller rivals."

Technology acquisitions will still be slower than in 2006 and 2007, PricewaterhouseCoopers said.

Chip companies that curbed production in the recession will use acquisitions to boost output, PricewaterhouseCoopers said. Hardware and networking companies are looking for ways to offer more storage products and target smaller clients, while Internet companies will purchase start-ups that offer products tied to the users' locations.

Software makers, while not the most active acquirers in 2010, will look for targets to expand in areas such as information security and cloud computing, Mr. Page said.

Last year, Cisco Systems Inc., the world's largest maker of networking gear, announced seven deals. They included the $2.9 billion purchase of Starent Networks Corp., whose products help phone carriers route mobile-phone data, and the pending 19 billion kroner ($3.2 billion) takeover of Tandberg ASA, the Lysaker, Norway-based maker of videoconferencing gear.

In January, Oracle Corp. completed its purchase of Sun Microsystems Inc. Oracle, the second-largest software maker, announced the $7.4 billion deal last April. The purchase was delayed as US and European regulatory agencies investigated whether the deal would hinder competition.

"We expect that, as deals pick up, they will continue to get this higher level of scrutiny,"Mr. Page said. "We may see more companies required to divest pieces of the business that the commissions decide are anti-competitive."