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International Business Machines Corp plans to buy technology services company SPSS Inc for about $1.2 billion in cash, the companies said on Tuesday.

Source:  Reuters.com

Date: 7/28/2009

Keys: Strategy, planning, mergers & acquisitions, organization structure

Link: http://www.reuters.com

Questions for discussion:

  • Organizations can grow through mergers with and the acquisitions of other organizations. This strategy works best when there is synergy between the two. Explain why IBM would choose to grow by acquiring the operations of SPSS.
  • Given this acquisition, what are the implications for management of both firms over the next five years in terms of organization structure, HR, etc.?
  • What other strategic growth opportunities do you think would work well for IBM?
  • Identify one opportunity which would not work well. Explain your thinking.

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