Transformational acquisition is an acquisition of a company or a division of it with the aim to jointly establish a new business model or to enrich the offer for its customers by different expertise and new solutions. This may be different production technologies or new capacity.McKinsey & Company, Insights & Publications, 2010: The five types of successful acquisitions

This definition is used in recent years only, but a significant number of mergers & acquisitions allocate their transaction to this type.Globalnewswire, April 2015: Electrovaya Completes Transformational Acquisition of Evonik-Litarionvalue and opportunity, July 2012: Red flags for investments: “Transformational” acquisitions Beyondthedeal.net, Nov. 2012: Carrying out a successful Transformational Acquisition and Integrationstrategy-business.com, May 2014: Deals That Transform Companies

List of examples for Transformational Acquisitions

Year Purchaser Purchased Transaction value 1999 Vodafone Airtouch PLC Mannesmann 220 bill. US$ 1996 Novartis Ciba-Geigy and Sandoz 30 bill. US$ 2014 MMGBloomberg, July 2014: Las Bambas Transformational Acquisition Las Bambas 5.85 bill. US$ 2015 Clinigen GroupInsidermedia, April 2015: Clinigen completes "transformational" acquisition IDIS Pharma 225 mill. £ 2015 Electrovaya Evonik Litarion not published

See also

Mergers and acquisitions Takeover Management control Management due diligence Merger integration Successor company

References