Integrating Enterprise Systems in Mergers and Acquisitions

Mergers and acquisitions are important business strategy for growth. Many mergers and acquisitions have failed, however, due to a mismatch between strategic, organizational, and increasingly, information systems factors. Given that a large number of enterprise systems have been deployed in the last decade, their integration post merger is crucial to organizations that pursue mergers and acquisition as a growth strategy. This paper discusses issues that are important to the integration of information systems in a merger and acquisition environment. The need for information systems fit is emphasized; the role of information systems plays and its involvement in the integration life cycle are elaborated. An information systems integration success model is discussed and issues related to enterprise systems integration are presented. The paper concludes by highlighting the need for enterprise systems integration for companies to position themselves favorably in the merger and acquisition environment.