If you have cash sitting around, you'd want to spend it to accelerate your business. Buying a company with a successful product, great team, large user base and actual revenues can be seen as a much safer investment (assuming the price isn't inflated) than spending 1 or 2 years trying to catch up with the competition, with no guarantee of success.
It doesn't mean of course that buying a company is always the best decision.. it boils down to whether the acquired product and team ends up being a good fit.
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If you have cash sitting around, you'd want to spend it to accelerate your business. Buying a company with a successful product, great team, large user base and actual revenues can be seen as a much safer investment (assuming the price isn't inflated) than spending 1 or 2 years trying to catch up with the competition, with no guarantee of success.
It doesn't mean of course that buying a company is always the best decision.. it boils down to whether the acquired product and team ends up being a good fit.