Exploring integration approach in related mergers: Post‐merger integration in the high‐tech industry

Abstract

Purpose

In mergers and acquisitions (M&As) the culture of the acquired organization often represents a counterculture for the acquiring firm. The purpose of this paper is to present a case study of an acquisition of German FAST by the Israeli firm Aladdin, and exemplifies the post‐merger integration issues that arose as a result of the culture clash between amalgamating entities in the high‐tech industry.

Design/methodology/approach

The study used a qualitative research design because of the need for in‐depth understanding of the processes, local contextualization, causal inference, and the necessity to expose the points of view of the participants. Triangulation was one of the important means of increasing construct validity and substantiating findings and propositions.

Findings

The case study analysis covers the processes that affect M&A performance and elucidates a significance of the post‐merger integration approach that is implemented in cross‐border M&As.

Practical implications

The examination sheds light on the pre‐ and post‐merger processes and provides new insights into both.

Originality/value

The case study describes two international high‐tech companies before their merger, the negotiation process, and the post‐merger integration approach adopted by the acquiring firm. The study extends the existing limited knowledge about integration approach in implementation of international high‐tech mergers.

Citation

Weber, Y. and Tarba, S. (2011), "Exploring integration approach in related mergers: Post‐merger integration in the high‐tech industry", International Journal of Organizational Analysis, Vol. 19 No. 3, pp. 202-221. https://doi.org/10.1108/19348831111149178