How To Complete A Successful IT Merger In 2017

On the back of increased M&A activity, Miguel Vergara explains how IT companies can ensure smooth integration

- Miguel Vergara

This may be one of the most volatile economic climates in decades, but many companies have found at least one silver lining despite this uncertainty.

Mergers and acquisition (M&A) activity is on the rise – so much so that M&As in Europe hit $215.3bn during the first quarter of 2017, according to Thompson Reuters. This marks a jump of 16 per cent compared with the same period last year and is largely down to US organisations taking advantage of favourable exchange rates and a swing back to political optimism in the EU.

We’re also seeing a rise in the acquisition of technology companies – particularly those that have developed best-of-breed services, products or algorithms – by established players hoping to stay one step ahead of competitors.

It’s also worth noting that four in five companies have said they are likely to divest parts of their organisation this year. With all of this in mind, it’s clear 2017 will be an unprecedented time for M&A.

A blank slate for smarter working

Opportunism is crucial to success in an uncertain market, but making the choice to acquire another company is the easy part. The bigger challenge is to quickly start getting value out of a newly acquired business while dealing with the complexities of a very large integration project.