Technology research firm The 451 Group is expecting a boost in the pace of technology M&A deals in 2007 and slightly higher valuations, after corporate buyers paused during the second half of 2006.

The first half of 2006 was the busiest time the sector has seen since the tech boom of the 1990s, with $245 billion spent on acquisitions, said Brenon Daly, financial analyst at 451. There were $148 billion in tech deals through Dec. 8. Absorbing those acquisitions and a renewed interest in bringing technology companies public were responsible for the slow down, he said.

Brad Adams, a managing director at Boston Corporate Finance, also expects a strong deal climate next year, but he doesn't see another boom. Buyers want businesses with consulting services, quality assurance testing skills and offshore locations, he said.