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Mergers and acquisition – post merger IT integration

“All marriages are happy. It’s the living together afterwards that causes all the trouble.”
- Raymond Hull, Canadian Playwright.
Although Mergers and Acquisitions are common, no merger is termed as successful until post merger integration is successful. During M&A, two companies that function uniquely are fused together, and the Information Technology group is expected to consolidate two different systems efficiently. This integration should be well-executed, and without any disruption to business or customers. Every merger is different, and can have innumerable reasons for failure, ranging from poor implementation strategies to cultural or attitudinal problems. One of the reasons, many Post-Merger Integration activities fail, is due to the Information Technology complexity and inadequacy to address the issues, it brings to the table. This thesis aims at studying the importance of post-merger Information Technology (IT) integration and developing an IT strategy for the integration. There are no scientific guidelines laid out for a post-merger IT integration and each company employs its own methods. Hence the author has researched and developed a post-merger IT integration framework that can give definitive approach and assist in seamless integration. This framework includes practices that can be followed for a smooth IT transition and checklist to ensure successful integration.
Lastly the author presents two cases of M&A that illustrate the importance of IT integration, namely, Sallie Mae- USA Group and HP-Compaq. Sallie Mae & USA Group was a huge success due to its successful IT integration implementation while HP-Compaq merger was a disappointment for the lack of understanding the importance of IT integration. From these two cases, the author has also derived the usefulness of the proposed framework. Author has also presented another case of Oracle-Sun merger, which does an analysis of the IT integration carried out by the two companies. It would not be unwise to say, that IT plays an ever increasing pervasive role in today’s organizations, hence a successful merger demands successful IT integration. / text

Identiferoai:union.ndltd.org:UTEXAS/oai:repositories.lib.utexas.edu:2152/ETD-UT-2012-05-5303
Date19 July 2012
CreatorsDeshmukh, Rani
Source SetsUniversity of Texas
LanguageEnglish
Detected LanguageEnglish
Typethesis
Formatapplication/pdf

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