Mergers and acquisitions (M&A) in the automotive industry play a crucial role in achieving key business objectives, such as entering new markets or advancing technology. These deals can significantly impact investors, employees, and consumers, affecting stock performance, job security, and the introduction of new car features.

This article looks at the eight biggest mergers and acquisitions in the automotive industry, showing how they have shaped the sector and why they matter.

Historical context of M&A in the automotive sector

Mergers and acquisitions have played a significant role in shaping the automotive sector over the past century. Let’s explore why.

Early 20th century: formation and market consolidation

The auto industry began in the late 19th and early 20th centuries, with many small manufacturers entering the car market. These early years were characterized by intense competition and innovation, as companies raced to establish themselves in a rapidly growing industry:

Mid-20th century: global expansion and diversification

As the industry matured, automotive companies began to look beyond their home markets for growth opportunities. This period saw a wave of cross-border M&A activity, as businesses and private equity firms sought to enter new markets and diversify their offerings:

Late 20th century: strategic alliances

By the late 20th century, the automotive industry was highly competitive and globalized. Companies turned to strategic mergers and alliances to survive and thrive:

21st century: the automotive industry’s shift

The 21st century has brought about significant changes in the automotive sector, driven by technological advancements, changing consumer preferences, and increasing regulatory pressures, including the US Inflation Reduction Act and the EU’s ban on the sale of gas-powered vehicles after 2035:

Recent M&A activity

In 2022, the industry emphasized speed, with many original equipment manufacturers (OEMs) forming joint ventures and alliances to advance in what’s termed the “5 RACES”:

1. Real customer focus
2. Autonomous driving
3. Connectivity and digitization of vehicles
4. Electrification of powertrains
5. Shared mobility

OEMs pursued deals to rapidly develop batteries, EV technology, and advanced driver-assistance systems while adjusting their legacy internal combustion engine operations for future investments. Despite the effectiveness of these deals, OEMs now face new challenges, including securing critical materials for batteries.
In 2023, deal activity within the automotive value chain slowed significantly due to an uncertain macroeconomic and geopolitical environment, with deal value dropping by 59% and volume by 40%. Companies have recognized that M&A is now a vital strategic tool, and those who don’t participate may struggle to remain competitive.

The eight biggest mergers and acquisitions in the automotive industry

Now let’s explore the eight most significant automotive industry mergers and acquisitions. 

1. Ford and Jaguar Cars

Year: 1989

Deal value: $2.5 billion

The deal between Ford and Jaguar Cars is first on the list of major strategic mergers. Ford acquired Jaguar Cars in 1989, marking a significant expansion of its luxury vehicle portfolio. Later, in 2000, Ford further strengthened its position in the luxury automotive market by acquiring Land Rover from BMW. This move brought the two prestigious British brands, Jaguar and Land Rover, under the same corporate umbrella for the first time since their shared history in British Leyland.

In 2006, Ford purchased the Rover brand name from BMW for around £6 million, reuniting the Rover and Land Rover brands for the first time since the Rover Group’s breakup. These acquisitions were part of Ford’s broader strategy to strengthen its luxury brand offerings.

However, the deal outcomes led Ford to reevaluate its strategy, and in 2008, it sold both Jaguar and Land Rover to Tata Motors for $2.23 billion. This transaction included several other British marques, like Daimler and Lanchester. Tata Motors then established Jaguar Land Rover Limited, which became responsible for both brands. In 2013, the company underwent further restructuring, fully integrating Jaguar and Land Rover operations under one entity.

2. BMW and Rover Group

Year: 1994

Deal value: $1.35 billion

The Rover Group, previously known as BL plc (British Leyland), was a major British vehicle manufacturer that included brands like Rover, Mini, MG, and Land Rover. Originally state-owned since 1975, the company underwent several corporate mergers and restructurings, including a rebranding as Rover Group in 1986. By 1988, British Aerospace (BAe) acquired the company for £150 million, focusing on the Rover brand while phasing out others like Austin.

In 1994, BAe sold an 80% stake in the Rover Group to the German automaker BMW for £800 million. This acquisition marked a major shift for Rover, as BMW sought to revitalize the struggling British carmaker. Despite BMW’s substantial investments, Rover continued to face financial difficulties, and the acquisition ultimately proved unprofitable for BMW.

By 2000, BMW decided to break up the Rover Group. Ford acquired the Land Rover division, while the MG and Rover brands were sold to the Phoenix Consortium, forming the smaller MG Rover Group. BMW retained the rights to some historic marques like Mini, which became a successful brand under its stewardship. However, the Rover marque itself was eventually sold to Ford, and later transferred to Tata Motors along with Land Rover in 2008, reuniting the original Rover brands under one ownership.

3. Daimler-Benz and Chrysler

Year: 1998

Deal value: $38 billion

In 1998, Daimler-Benz and Chrysler Corporation merged to create DaimlerChrysler AG, a key automotive deal that was called a “merger of equals.” This $38 billion deal was the largest cross-border merger ever at that time. The merger allowed Daimler-Benz’s non-automotive divisions to continue operating independently and pursue their growth strategies.

However, the merger was controversial. Investors sued, arguing whether it was truly a merger of equals or if Daimler-Benz had taken over Chrysler. Some of these lawsuits were settled, while others were dismissed. The merger also led to the resignation of DaimlerChrysler’s chairman, Jürgen E. Schrempp, due to the company’s declining stock price.

By 2006, Chrysler was struggling financially, reporting a $1.5 billion loss and planning layoffs and plant closures. In 2007, DaimlerChrysler decided to sell Chrysler to Cerberus Capital Management for $6 billion, completing the sale in August 2007. DaimlerChrysler then rebranded as Daimler AG and retained a 19.9% stake in Chrysler. 

4. Fiat and Chrysler

Year: 2009

Deal value: $52 billion

One of the notable automotive acquisitions took place in 2009 when Fiat acquired a 35% stake in Chrysler, which was struggling during the Great Recession. This investment came after Chrysler had faced severe financial difficulties, including a sharp decline in sales and a significant number of job cuts. The U.S. government provided a $13.4 billion bailout to both Chrysler and General Motors to help them stay afloat.

Despite Fiat’s investment, Chrysler filed for bankruptcy later in 2009. During this bankruptcy, Fiat’s stake increased but did not grant it full control. The United States, through the United Auto Workers’ retiree trust, held a 55% share in Chrysler. Over the next two years, Fiat gradually increased its ownership, eventually buying out the U.S. government’s stake in 2011. By January 2014, Fiat had acquired the remaining shares held by the UAW, and Chrysler was fully integrated into Fiat.

The merged entity was renamed Fiat Chrysler Automobiles (FCA) and registered in Amsterdam. In 2019, FCA sought a new merger partner, initially negotiating with Renault but eventually pursuing a deal with Peugeot. By December 2020, the European Commission approved the merger, and in January 2021, FCA and Peugeot finalized their merger, forming Stellantis.

5. Geely and Volvo Cars

Year: 2010

Deal value: $1.8 billion

In 2010, Zhejiang Geely Holding Group Co., a Chinese automotive conglomerate, acquired Volvo Cars from Ford Motor Co. for $1.8 billion. This was one of the most notable acquisitions as it marked Volvo’s departure from American ownership and its entry into Chinese hands.

Ford had owned Volvo since 1999 but decided to sell the Swedish automaker due to financial pressures following the 2008-2009 global financial crisis. Geely’s purchase was a strategic move aimed at expanding its global footprint and gaining access to Volvo’s technology and brand.

Under Geely’s ownership, Volvo received substantial investment, with over $11 billion committed to modernizing its vehicle lineup, advancing electric vehicle technology, and expanding its manufacturing capabilities. This investment helped Volvo modernize its operations, improve its competitive position, and capture a larger share of the growing Chinese auto market.

6. Nissan and Mitsubishi Motors

Year: 2016

Deal value: $2.3 billion

Nissan and Mitsubishi Motors are also on the list of the automotive mergers. On October 20, 2016, Nissan Motor Co. acquired a 34% stake in Mitsubishi Motors, becoming its largest shareholder. This move was part of a strategy to enhance the global alliance between Nissan, Mitsubishi Motors, and Renault, creating one of the world’s top three automotive groups with annual sales reaching 10 million vehicles.

Nissan Chairman and CEO, Carlos Ghosn, announced that this acquisition would lead to closer collaboration between the companies, including joint purchasing, shared vehicle platforms, and technology exchange. The partnership aimed to expand their market presence in both developed and developing markets.

Ghosn projected that the synergy from this alliance would bring significant financial benefits, estimating cost savings of 24 billion yen in the 2017 fiscal year, increasing to 60 billion yen in 2018. This was expected to boost Nissan’s earnings per share by four yen in 2017 and 10 yen in 2018.

7. Porsche and Volkswagen

Year: 2012

Deal value: unknown

Porsche and Volkswagen are among automotive M&A examples. Though founded by the same visionary, Ferdinand Porsche, the companies had a complex and contentious relationship. Ferdinand Porsche, a renowned engineer, established both Porsche and Volkswagen in the mid-20th century. His son-in-law, Anton Piëch, was Volkswagen’s first production manager.

In 2005, Porsche began to buy up shares in Volkswagen, partly due to concerns over the Volkswagen Law, which had previously protected Volkswagen from hostile takeovers. Porsche saw this as an opportunity to increase its influence or potentially take over Volkswagen. This led to a dramatic series of events where Porsche made aggressive moves to acquire Volkswagen.

The situation took several unexpected turns. Volkswagen, instead of being taken over, eventually executed a reverse takeover of Porsche. In this reversal, Volkswagen effectively absorbed Porsche. This complex process included legal disputes and corporate governance issues, highlighting the differences between German and U.S. securities and corporate laws. In the end, Volkswagen spun off Porsche through an initial public offering (IPO). 

8. Fiat Chrysler Automobiles (FCA) and the French PSA Group

Year: 2021

Deal value: $52 billion

Stellantis N.V. is a multinational automotive corporation formed in 2021 through one of the biggest automotive industry deals — a merger of Fiat Chrysler Automobiles (FCA) and the French PSA Group. Headquartered in Hoofddorp, Netherlands, Stellantis quickly became the world’s fourth-largest automotive business by sales. In 2023, it was ranked 61st in the Forbes Global 2000, with a workforce of approximately 300,000 employees and operations in over 130 countries.

Stellantis oversees 14 well-known brands, including Jeep, Peugeot, and Chrysler, and continues to expand its portfolio through strategic acquisitions, such as the car-sharing platform Share Now and autonomous vehicle firm aiMotive. The company is heavily invested in electric vehicle technology, planning to launch 29 electrified models by 2021’s end and develop four EV platforms by 2030, backed by over €30 billion in investments.

In 2023, Stellantis acquired a 20% stake in Chinese electric vehicle maker Leapmotor, aiming for 500,000 sales outside China by 2030. The company’s stock trades on the Borsa Italiana, Euronext Paris, and the New York Stock Exchange.

Key takeaways

• M&A in the automotive industry often aims to achieve strategic goals like entering new markets and enhancing technological capabilities. For instance, the 2021 merger of Fiat Chrysler Automobiles and PSA Group created Stellantis, a global automotive giant focused on innovation and market expansion.

• Major automotive M&A deals, such as Daimler-Benz’s merger with Chrysler and Geely’s acquisition of Volvo, had a significant industry impact. These transactions not only influence company operations but also affect stock performance, consumer choices, and global market strategies.

• While M&A can provide opportunities for growth and innovation, it also comes with challenges. For example, Ford’s acquisition of Jaguar and Land Rover initially aimed at boosting its luxury portfolio but ultimately led to a reevaluation of strategy, resulting in the sale of these brands to Tata Motors.

The success of an M&A deal depends on many factors: from thorough due diligence to strong leadership and sufficient integration planning. 

However, lots can also hinge on the team that’s involved in the M&A process. Besides the corporate development team, C-suite, and business unit leadership, external advisors remain one of the main stakeholders of the M&A transaction. 

In this article, we focus on the importance of the external experts from an M&A firm in the deal execution, explore what services it provides, and list the best mergers and acquisitions firms in the world. 

What is an M&A firm?

M&A firms, or M&A advisory firms, are specialized financial institutions or consultancies that provide advisory services to the sell- or buy-side during mergers and acquisitions or any other type of corporate transactions. 

An M&A firm typically offers expertise in such fields as law, audit, or finance and serves as an intermediary between the deal sides managing the whole transaction process. Mergers and acquisitions firms help companies outline their strategic goals and achieve them faster and more efficiently.  Based on the advisory services provided, M&A firms can be broadly divided into investment banks, law firms, financial advisory firms, and audit firms.

Key services offered by M&A firms

Let’s now take a closer look at how exactly M&A companies help businesses navigate corporate transactions. M&A consulting firms assist the deal-making process participants with the following:

10 best mergers and acquisitions firms

Now, let’s review the top mergers and acquisitions consulting firms that help businesses undergo M&A and other corporate finance processes worldwide.

1. Goldman Sachs

Type of advisory services: Investment bank

Deals value: $671 billion (2023)

Revenue: $46.25 billion (2023)

Goldman Sachs is one of the top M&A investment banks and securities and investments management firms in the world. To be precise, it’s the second-largest investment banking company in the world by revenue and the biggest one by deal value. 

The company was founded in 1869 as a small business specializing in buying and selling promissory notes in Lower Manhattan. Since then, it has grown into a successful investment bank with dozens of offices around the world that is headquartered in New York. 

Goldman Sachs offers services in investment banking (especially restructuring and mergers and acquisitions), asset and wealth management, securities underwriting, and prime brokerage. It also operates hedge funds and private equity funds and is considered a market maker for many types of financial products. 

The firm’s focus is typically complex and high-profile deals, however, they can also facilitate acquisitions for lower middle market companies as well. 

Among the most notable deals Goldman Sachs was involved in were Amazon’s acquisition of Whole Foods Market in 2017 and the merger of the merger of Exxon and Mobil in 1999.

2. Morgan Stanley

Type of advisory services: Investment bank

Deals value: $111 billion (2023)

Revenue: $15 billion (2023)

Morgan Stanley is also on the market leaders list of the top investment banking firms. It’s a multinational investment bank and financial services company with offices in more than 40 countries and headquarters in New York. 

It was founded in 1935 by a grandson of J. P. Morgan as a response to the Glass–Steagall Act, which required a separation of commercial and investment banking business in America. 

Morgan Stanley provides comprehensive services in investment banking, securities management, wealth management, and investment management. Morgan Stanley has a strong reputation for its M&A advisory services, offering clients extensive solutions for complex transactions.

Among the most notable deals Morgan Stanley was involved in are the merger of Comcast and NBC Universal in 2011 and the acquisition of LinkedIn by Microsoft in 2016.

3. Wells Fargo

Type of advisory services: Investment bank

Deals value: $45 billion (H1 2024)

Revenue: $82.6 billion (2023)

Wells Fargo is an American multinational financial services company and one of the largest M&A firms worldwide. 

It was founded in 1852 with the intent to provide “express” and banking services to California which was undergoing the rapid growth of the Gold Rush. Now, Wells Fargo operates in 35 countries and is headquartered in San Francisco. It’s also one of the “Big Four” banks in the US, together with J.P. Morgan, Citigroup, and Bank of America. 

Wells Fargo specializes in providing banking, investments, mortgages, and consumer and commercial finance. While not as prominent in M&A as some of its peers, Wells Fargo offers a range of advisory services, focusing on middle-market firms’ transactions.

Among the most notable deals Wells Fargo advised on is Fiserv’s acquisition of First Data in 2019.

4. Citigroup

Type of advisory services: Investment bank and financial advisory firm

Deals value: $34 billion (2023)

Revenue: $78.46 billion (2023)

Citigroup is an American multinational investment bank and financial services company that is also one of the top mergers and acquisitions companies in the world. 

Citigroup was formed in 1998 by a merger of Citicorp and Travelers. In 2002, Travelers was spun off from the company. Now, Citigroup is headquartered in New York and serves clients worldwide. It’s also one of the eight global investment banks in the Bulge Bracket, a list of the largest investment banks that mostly serve governments, institutional investors, and large corporations. 

Citi offers a broad range of financial products and services, including consumer banking, corporate banking, investment banking, securities brokerage, and wealth management. It also provides comprehensive M&A advisory services, including strategic advice, transaction execution, and capital raising. The firm is well-regarded for its international reach and ability to handle cross-border transactions.

Among the most notable deals Citigroup was involved in was the Allergan and Actavis merger in 2015.

5. J.P. Morgan

Type of advisory services: Investment bank

Deals value: $76 billion (2023)

Revenue: $158.1 billion (2023)

J.P. Morgan is one of the leading providers in investment banking, asset management, business sales and acquisitions processing, and commercial banking. 

It was founded in 1871 by J.P. Morgan, though the early history of the firm can be traced to 1799 with the founding of the Manhattan Company. Since then, the company has grown into the fifth-largest global investment bank by assets in 2024 and #1 on the Forbes 2000 list as of May 2024.

The firm is a leader in M&A advisory, known for its expertise in large-scale and complex transactions. J.P. Morgan provides strategic consulting, valuation, deal structuring, and integration services.

Among the most notable deals it was involved in are the merger of Dow Chemical and DuPont in 2017 and the merger of Sprint and T-Mobile in 2020.

6. McKinsey & Company

Type of advisory services: Financial and M&A advisory firm 

Deals value: N/A

Revenue: $16 billion (2023)

McKinsey & Company is an American multinational strategy and management consulting firm that works with government agencies, corporations, and other types of companies. 

It was founded in 1926 by a professor of accounting at the University of Chicago. Now, it has more than 130 offices around the world and is headquartered in New York. 

McKinsey provides strategic and operational advisory services for M&A, focusing on creating value through mergers and acquisitions. It advises on numerous M&A transactions across various industries, often focusing on post-merger integration and value creation. Additionally, the firm’s specialists have expertise in digital and technology transformation, helping their clients leverage technology for performance improvements.

Among the notable deals McKinsey advised on was Dell’s acquisition of EMC in 2016. 

7. Skadden

Type of advisory services: Law firm

Deals value: $188 billion (Q1 2024)

Revenue: $3 billion (2023)

Skadden is an American multinational law firm that provides a wide range of legal services including M&A, corporate finance, litigation, and regulatory advice.

It was founded in 1948 by Marshall Skadden and a group of other professionals, which formed the firm’s full name — Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates. Since then, Skadden has grown to a world-renowned law firm with about 3,500 employees, 21 offices worldwide, and headquarters in New York. 

Skadden is known for its expertise in handling high-stakes M&A transactions, offering legal advisory services to corporations, investment banks, and private equity firms. 

Some of the notable deals Skadden was involved in include the acquisition of LinkedIn by Microsoft in 2016.

8. Barclays

Type of advisory services: Investment bank and financial advisory firm

Deals value: $35 billion (2023)

Revenue: $31 billion (2023)

Barclays is a multinational universal investment bank and financial services company offering services in investment banking, personal banking, wealth management, and more.

It was founded in 1690 in London. Since then, it has grown to a large European bank with offices in more than 40 countries and over 80,000 of employees. Barclays is the fifth-largest European bank by assets as of 2023.

Barclays provides comprehensive M&A advisory services, including strategic advice, financing, and risk management solutions. It advised on such deals as the acquisition of BG Group by Royal Dutch Shell in 2016.

9. Deloitte

Type of advisory services: Audit and accounting firm

Deals value: N/A

Revenue: $64.9 billion (2023)

Deloitte is one of the largest and world-renowned audit and multinational professional services networks, officially known as Deloitte Touche Tohmatsu Limited. 

It was founded in 1845 in London and expanded into the United States in 1890. Now, it’s a large corporation that operates in more than 700 locations worldwide and is one of the Big Four accounting firms, along with EY, KPMG, and PwC. 

Deloitte offers various M&A advisory services, including strategy, due diligence, transaction execution, and post-merger integration. It has advised on numerous mid-market transactions, leveraging its extensive industry knowledge and global reach.

Some of the notable transactions in Deloitte’s portfolio include Dell’s acquisition of EMC in 2016 and Takeda Pharmaceutical’s acquisition of Shire in 2019.

10. KPMG

Type of advisory services: Audit and accounting firm

Deals value: N/A

Revenue: $36 billion (2023)

KPMG, officially known as KPMG International Limited, is a multinational professional services network and one of the Big Four accounting firms. 

The early notes of the company’s operations appeared in 1897. Now, it’s one of the top mergers and acquisitions firms operating in 145 countries, with legal headquarters in London. 

The variety of services KPMG provides can be divided into three main lines: tax, advisory, and audit. Its M&A advisory services include strategic advice, financial due diligence, valuation, and integration services. 

Among the notable deals KPMG assisted with is AstraZeneca’s acquisition of Alexion Pharmaceuticals in 2021.

Key takeaways

• An M&A firm is a dedicated advisory firm that provides advisory services to a sell- or buy-side during the M&A deal execution. 

• Among the main services provided by M&A firms are assistance with market research, valuation, due diligence, strategic advice, deal structuring, integration planning, post-merger integration execution, exit strategy planning, and management of regulatory and compliance requirements.

• Some of the top M&A firms include Goldman Sachs, Morgan Stanley, Wells Fargo, Citigroup, and Deloitte.

Though stock-based mergers are not as common as all-cash deals, they’re still a strategic choice for dealmakers who seek an opportunity to avoid a large cash outlay, yet embrace the potential for growth. 

In this article, we describe a stock-for-stock merger, its pros and cons, and the basics of how it’s structured. Read on to learn more about stock mergers and how they differ from other M&A deal types.

What is a stock-for-stock merger?

A stock-for-stock merger is a type of M&A transaction in which the acquiring company pays for the target company’s shares with its own stock. 

This way, instead of receiving cash, the target company’s shareholders receive the acquiring company’s stock in exchange for their shares in the target company.

Here’s how stock mergers are different from other types of mergers: all-cash and mixed ones.

Aspect	Stock-for-stock	All-cash	Mixed
1 Consideration	Shares of the acquiring company	Cash payment	Combination of cash and shares
2 Shareholder impact	Target company shareholders become shareholders in the acquiring company	Target shareholders receive cash, no ongoing stake	Shareholders receive cash and become part shareholders in the acquiring company
3 Capital requirements	Requires no initial cash investments	Requires cash investments	Requires both cash and issuance of new shares
4 Tax implications	Generally tax-deferred for shareholders if structured properly	Taxable	Partially tax-deferred, partially taxable
5 Dilution of ownership	Dilutes ownership of existing shareholders in acquiring company	No dilution	Partial dilution due to the issuance of new shares
6 Strategic use	Used when the acquiring company wants to conserve cash or when the target company’s shareholders want to retain an interest in the combined entity	Preferred when the acquiring company has ample cash reserves or when the target company’s shareholders prefer liquidity	Suitable for balancing cash outlay with equity offering and sharing future growth

How stock-for-stock mergers work

To better understand the mechanics of stock mergers, here’s a stock-for-stock merger example.

Let’s say Company A acquires Company B through a 1-for-2 stock merger agreement. This way, shareholders of Company B will get one share of Company A for each share they own in Company B. After such a stock-for-stock transaction, shares of Company B, the target, cease trading, and Company B, the acquirer, may issue new shares to provide for the converted shares. 

The real-life examples of stock-for-stock deals are Microsoft’s $7.5 billion acquisition of GitHub in 2018 and ExxonMobil’s $59.5 billion acquisition of Pioneer which was completed in May 2024.

Now, let’s get to the main stages of the stock-for-stock acquisition process.

Pros and cons of stock-for-stock mergers

A stock-based merger comes with certain advantages and disadvantages for both companies and their shareholders.

Pros

Cons

Tax implications and other intricacies to consider

An M&A transaction based on stock consideration is an attractive strategy due to its less complex nature compared to all-cash deals. However, there are still certain intricacies and implications involved. Let’s briefly review the main of them:

How to evaluate stock mergers

A thorough evaluation is essential for the stock-for-stock merger calculation of the fair and equitable exchange ratio. 

Evaluation involves analyzing multiple dimensions to assess whether the merger will create value for shareholders and fit strategically. These are the key factors to consider during this process:

Key takeaways

• A stock-for-stock merger is a type of M&A transaction in which an acquiring company pays for the target company’s shares with its own shares.
  
• Unlike all cash transactions, a stock-for-stock merger doesn’t require instant cash investments and is typically tax-deferred. 

• Among the main advantages of a stock merger are reduced cash outflow, tax deferral options, and shareholder value potential. 

• The main disadvantages include valuation risk, integration challenges, and dilution of ownership.
  
• When evaluating the stock merger, it’s important to consider strategy fit, potential synergies, financial impact, and market and industry analysis to the fair and equitable exchange ratio.

Mergers and acquisitions give organizations an opportunity for growth and expansion. However, it also means change — both for the acquiring company and the target company. 

A large portion of change affects employees. And knowing how to navigate the transition process so that employees from two companies are cared of is one of the primary tasks of deal-makers.

So, when a company buys another company, what happens to the employees? In this article, we discuss the main concerns acquiring and target company’s employees may have, model possible scenarios of what happens to employees after acquisition, and share several recommendations to maintain and boost employee morale during the acquisition process.

Job security concerns

During the company acquisitions and formation of a new organization, employees from both sides often face significant fears and uncertainties about their job security and future career prospects. 

What’s more, Culture Amp’s survey shows that M&A processes negatively impact employees’ perceptions of decision-making, alignment, and motivation. 

Most employees’ concerns typically stem from the following:

Possible scenarios for employees when a company is acquired

Now, let’s take a look at the realistic picture and model what happens to employees when a company is acquired. Below we describe some of the most common scenarios. 

1. Layoff 

Unfortunately, layoffs are very common when the acquirer and the acquired organization integrate. This is because many of the roles, and sometimes even departments, become redundant due to the responsibilities overlap. A newly formed entity doesn’t need two sales or HR departments, for instance. 

As a result, certain employees might be laid off. Those affected might receive severance packages and outplacement services, but the experience can be unsettling and disruptive. 

One of the huge employee layoffs examples is Elon Musk’s acquisition of Twitter (now X). Sources state that about 80%, which is more than 6,000 people, were laid off, leaving only 1,500 people employed.

2. Promotion

On the bright side, a merger can also create opportunities for promotion within the newly formed organization. 

As the company restructures and redefines roles, employees who demonstrate leadership, adaptability, and strong performance may be promoted to higher positions. These promotions may result from the need for new management to oversee larger or restructured teams, or from the recognition of talent that fits the new company’s strategic direction. 

It means that employees who embrace the changes and align with the company’s new goals may find themselves on a faster track to career growth.

3. New team 

A merger also often means that employees might need to join new teams, as those they worked on before might be reorganized or laid off. 

A new work environment with new colleagues can be both exciting and challenging. Employees might need to adapt to new workflows, navigate different work styles, and establish new work connections. 

An adaptation process requires patience and flexibility, however, it can also open new career doors and bring positive outcomes afterward.

4. Change in role

A merger often leads to shifts in job responsibilities. Employees’ roles change, either by expanding to include new tasks or by shifting to a different focus area. 

This typically happens due to the reallocation of resources, the introduction of new business strategies, or the need to align with the newly combined company’s goals. 

While some may see this as an opportunity to grow and learn new skills, others might struggle with the transition, especially if it moves them away from their preferred or specialized areas of expertise.

5. Extra income

Some employees may experience an increase in income following a merger. This can happen if the new company offers better compensation packages or if employees take on additional responsibilities that come with higher pay. 

Additionally, bonuses, stock shares, or other financial incentives may also be part of the merger to retain key talent and motivate employees to stay and contribute to the success of the newly merged entity. 

What’s more, stock-for-stock mergers specifically are based on the stock exchange between the acquirer and the target on the pre-agreed ratio, which is usually not 1-to-1. This means that if certain employees own stock in a target company, they may get, for example, two stock shares in the combined company. This is because the target’s shares cease trading, while the shares of the acquiring company continue to be traded.

6. Resignation and own business

Fortunately, for some employees, company purchases can become an opportunity to start a business on their own. Typically, this refers to directors and other high-level positions, but it’s not the rule. 

Such employees have enough experience and knowledge to start their own business. And they can easily become ready to do so if the outcomes of a certain M&A deal are not comfortable for them. 

For instance, that’s what Brian Acton and Jan Koum did. Both worked for Yahoo for more than nine years and left the company after a series of different mergers and acquisitions. A year after that, they incorporated their own startup — WhatsApp.

Employee morale and engagement during mergers

What happens when a company gets bought out is change, which can have a heavy psychological impact on employee morale and engagement levels. 

Employees might feel anxious or demotivated due to fears of layoffs, changes in leadership, or new job expectations. Due to uncertainty, they may also become less enthusiastic, productive, and engaged in their tasks, which can lead to a decline in overall performance. Additionally, though not obvious from the start, many employees feel guilt amidst acquisition layoffs (this corresponds to those who are not affected by layoffs).

Obviously, this needs to be timely and effectively addressed by the leadership team, since human capital is what makes deals work. 

Tips for maintaining and boosting employee morale during mergers

Here are a few recommendations of what a leader should do to retain key talents and ensure a smooth employee transition during the post-merger integration process:

Key takeaways

• When companies merge, what happens to employees is the change in operations and organizational structures, which results in fears and uncertainties employees might feel.

• The most common employee job security concerns include fear of losing a job, uncertainty about the role changes, cultural fit concerns, fear of changes in compensation and benefits, and more.

• Among the most possible scenarios for employees that undergo a company’s acquisitions or merger are layoffs, promotion, new team, change in roles, extra income, and sometimes even a resignation and opportunity to start their own business.

• To maintain and boost employee morale during mergers, ensure clear and transparent communication, involve employees in the process, provide regular support and resources, and recognize and reward contributions.

M&A (mergers and acquisitions) refers to the process where one company either combines with another company (merger) or purchases it (acquisition). Many mergers and acquisitions examples prove that these business transactions can increase market presence, reduce competition, and improve financial performance. 

In this article, we’ll explore the biggest acquisitions of all time and learn several lessons from them, like how to maximize value, manage integration challenges, and achieve strategic objectives.

15 examples of the biggest mergers and acquisitions of all time

Here is a list and description of historic M&A deals with details on their purposes and outcomes:

1. America Online (AOL) and Time Warner: $350 billion
2. China Shenhua Group and China Guodian Corporation: $278 billion
3. ChemChina and Sinochem: $245 billion
4. United Technologies and Raytheon: $121 billion
5. Dow Chemical and DuPont: $130 billion
6. Pfizer and Warner-Lambert: $90.27 billion
7. Microsoft and Activision Blizzard: $75 billion
8. Walt Disney Company and 21st Century Fox: $71.3 billion
9. ExxonMobil and Pioneer Natural Resources: $60 billion
10. H.J. Heinz Co. and Kraft Foods Group: $45 billion
11. Liberty Global and Telefónica: $38.9 billion
12. Sprint and Nextel Communications: $35 billion
13. Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP): $27 billion
14. London Stock Exchange and Refinitiv: $27 billion
15. HP and Autonomy: $11.7 billion

1. America Online (AOL) and Time Warner

Year: 2000

Deal value: $350 billion

This deal is notable for being the largest merger and acquisition deal in history at the time, with a transaction value of $360 billion. It combined AOL’s extensive internet subscriber base with Time Warner’s vast media assets. Under the terms, AOL shareholders were to own 55% of the new legal entity.

The acquisition was initially regarded as a strategic powerhouse, merging the world’s largest internet provider with a leading media conglomerate. However, the deal soon encountered severe challenges. The economic downturn and the burst of the dot-com bubble significantly devalued the merged company. As broadband technology advanced, AOL’s dial-up service quickly became outdated, worsening the company’s problems.

By 2002, AOL Time Warner reported a staggering $98.7 billion loss, the largest annual loss in corporate history at that time. This decline led to widespread financial losses for shareholders and employees, with some estimates suggesting that figures like Ted Turner lost billions due to the merger.

In 2009, Time Warner separated AOL into an independent entity, and by 2015, Verizon acquired AOL for $4.4 billion. The deal remains one of the worst mergers in history.

2. China Shenhua Group and China Guodian Corporation

Year: 2017

Deal value: $278 billion

In August 2017, the Chinese government approved the merger of China Shenhua Group and China Guodian Corporation, marking it one of the biggest mergers in history. This consolidation created the largest power company in the world, known as State Energy Investment Group. 

The merger aimed to provide several strategic advantages. In particular, it sought to mitigate risks from fluctuating coal prices, relieve Guodian’s debt burden, and integrate Shenhua’s coal supply chain with Guodian’s renewable energy assets, thereby enhancing its competitive advantage. 

This move aligned with broader state policies to create globally competitive, state-backed enterprises while potentially delaying domestic competition reforms. Additionally, the merger supported China’s efforts to reduce coal consumption and emissions.

3. ChemChina and Sinochem

Year: 2019

Deal value: $245 billion

Sinochem operates in oil, chemicals, and agricultural sectors, with notable assets like 32 oil and gas upstream projects in nine countries, a 15 million metric ton per year refinery in Quanzhou, and over 1,300 branded gas stations. ChemChina has significant operations in new chemical materials, agrochemicals, and oil processing, with four refineries totaling a capacity of 22.2 million metric tons per year.

The merger of these two state-owned Chinese companies aimed to consolidate their agricultural assets and enhance their capabilities in chemicals, biosciences, materials science, environmental science, and industrial finance. 

The merger is now one of the biggest deals in history and the company is the world’s largest chemical conglomerate, with operations in over 150 countries and a workforce of more than 220,000 employees.

4. United Technologies and Raytheon

Year: 2020

Deal value: $121 billion

In 2019, Raytheon Company and United Technologies Corporation announced their merger in an all-stock transaction, creating Raytheon Technologies. The deal, one of the biggest M&A deals of all time, closed in the first half of 2020, with United Technologies shareholders owning 57% of the new company and Raytheon shareholders owning 43%. 

This merger combined United Technologies’ aerospace business, which included jet engines, cockpit controls, and airplane seats, with Raytheon’s expertise in missile systems, notably the Tomahawk missile.

The deal enabled the merging companies to gain access to each other’s customer bases and enhance cash flows, capitalizing on the booming aerospace industry. It resulted in annual sales of approximately $74 billion, making the combined company the second-largest aerospace and defense company in the U.S. by revenue, trailing only Boeing. 

5. Dow Chemical and DuPont

Year: 2017

Deal value: $130 billion

On August 31, 2017, Dow Chemical and DuPont successfully completed their merger, forming DowDuPont. This new entity was structured into three separate companies: Agriculture, Materials Science, and Specialty Products. The merger aimed to create synergies and unlock value, with plans to separate into three independent, publicly traded companies within 18 months.

The Agriculture division combined the strengths of DuPont Pioneer, DuPont Crop Protection, and Dow AgroSciences. The Materials Science division incorporated Dow’s Performance Plastics, Performance Materials & Chemicals, and other segments along with DuPont’s Performance Materials. The Specialty Products division integrated DuPont Protection Solutions, Industrial Biosciences, and other technology-driven businesses.

This strategic move was expected to generate cost synergies of approximately $3 billion and growth synergies of about $1 billion. The separation into three focused companies aimed to provide higher value and greater opportunities for shareholders, customers, and employees.

6. Pfizer and Warner-Lambert

Year: 2000

Deal value: $90 billion

One of the biggest mergers of all time occurred in 2000, when Pfizer acquired Warner-Lambert in a deal valued at $90 billion, making the new entity the second-largest drug company globally. The acquisition was driven by Pfizer’s strategy to dominate the pharmaceutical industry and secure its profitable agreement on Lipitor, a cholesterol-lowering drug that was a major revenue source.

Despite Warner-Lambert’s initial resistance to Pfizer’s hostile takeover bid, the merger was finalized after three months of negotiations. The deal resulted in a substantial expansion of Pfizer’s sales force, adding 2,500 representatives to its existing 5,000. This increase, combined with a research team of 12,000, positioned Pfizer as a leader in the quickly evolving pharmaceutical industry.

The merger also aimed at cost-saving measures, with Pfizer planning to cut $1.6 billion in expenses by 2001. Although Warner-Lambert’s consumer products division, including brands like Listerine, was not a primary interest for Pfizer, it decided to retain this segment, managing it from Warner-Lambert’s  headquarters in New Jersey.

7. Microsoft and Activision Blizzard

Year: 2022

Deal value: $75 billion

On January 18, 2022, Microsoft announced its intent to acquire Activision Blizzard for $68.7 billion. The acquisition, completed on October 13, 2023, ultimately amounted to $75.4 billion, making it the largest video game acquisition by transaction value in M&A history. 

Microsoft integrated Activision Blizzard into its Microsoft Gaming division, alongside Xbox Game Studios and ZeniMax Media, gaining franchises like Call of Duty, Warcraft, Diablo, and Candy Crush.

The acquisition included a significant workforce restructuring, with Microsoft cutting 1,900 jobs from its gaming division and making leadership changes at Blizzard.

There also were several regulatory challenges that were overcome by transferring cloud gaming rights to Ubisoft for ten years to appease the UK’s CMA, while the US FTC withdrew its challenge after courts did not find their arguments compelling.

8. Walt Disney Company and 21st Century Fox

Year: 2019

Deal value: $71.3 billion

In March 2019, The Walt Disney Company completed one of the largest mergers in history, purchasing 21st Century Fox’s key assets. The deal included significant assets such as the 20th Century Fox film and television studios, FX Networks, a 73% stake in National Geographic Partners, Star India, and a 30% stake in Hulu. This acquisition allowed the acquiring company to significantly expand its content portfolio, customer base, and market share.

Fox Corporation retained assets such as the Fox Broadcasting Company, Fox News Media, and Fox Sports. Disney’s acquisition aimed to integrate these assets into its existing business operations, including the transformation of 20th Century Fox into 20th Century Studios. The merger also led to a restructuring of Disney’s television operations and a reorganization of its international business.

The strategic acquisitions were pivotal for Disney, aligning with its broader goal of enhancing its content library and expanding its streaming capabilities. Disney’s plan to phase out the Fox brand by 2024 was a deliberate move to prevent market confusion.

9. ExxonMobil and Pioneer Natural Resources

Year: 2024

Deal value: $60 billion

In 2024, ExxonMobil completed its acquisition of Pioneer Natural Resources in a transaction valued at $59.5 billion. This successful merger significantly expanded ExxonMobil’s presence in the Permian Basin, doubling its footprint and increasing its production capacity.

The combined entity now holds over 1.4 million net acres in the Delaware and Midland basins, with an estimated 16 billion barrels of oil equivalent in resources. ExxonMobil’s Permian production is projected to rise from 1.3 million to around 2 million barrels of oil equivalent per day by 2027. The merger integrates Pioneer’s extensive Permian acreage and expertise with ExxonMobil’s advanced technologies and financial strength, aiming to enhance resource recovery and operational efficiency.

Notably, the deal advances ExxonMobil’s environmental goals by accelerating Pioneer’s net-zero emissions target from 2050 to 2035. This strategic move is expected to improve shareholder value and support broader energy security and environmental objectives.

10. H.J. Heinz Co. and Kraft Foods Group

Year: 2015

Deal value: $45 billion

A merger between H.J. Heinz Co. and Kraft Foods Group created the Kraft Heinz Company. This deal positioned the new entity as the fifth-largest food company globally and the third-largest in the U.S. Under the terms, Heinz shareholders, including 3G Capital and Berkshire Hathaway, received a 51% stake in the new company, while Kraft shareholders got the remaining 49% and a one-time cash dividend of $16.50 per share, costing around $10 billion. 

The merger aimed to leverage Heinz’s global presence and Kraft’s strong North American market, expecting to drive international sales growth and achieve $1.5 billion in annual cost savings by 2017. This synergy realization was anticipated from enhanced economies of scale, improved bargaining power with retailers, and refinancing high-yielding debt with lower-cost options.

The merger also promised the two firms operational efficiencies through zero-based budgeting and strategic cost controls, influenced by 3G Capital’s history of aggressive cost-cutting measures.

11. Liberty Global and Telefónica

Year: 2021

Deal value: $38.9 billion

In May 2020, Liberty Global and Telefónica announced a merger of their UK operations, creating a 50-50 joint venture between Virgin Media and O2. This merger aimed to form the leading fixed-mobile provider in the UK, combining Virgin Media’s fast broadband network with O2’s extensive mobile platform. 

The expected synergies were worth £6.2 billion on a net present value basis, with annual benefits of £540 million by the fifth year post-closing.

The deal also included an investment of £10 billion in the UK over five years, enhancing digital infrastructure and expanding O2’s 5G and Virgin Media’s giga-ready network. Telefónica received £5.7 billion, and Liberty Global received £1.4 billion in net cash proceeds after recapitalization and equalization payments.

12. Sprint and Nextel Communications

Year: 2005

Deal value: $35 billion

In 2005, Sprint secured a majority stake in Nextel Communications with a $35 billion stock acquisition. This made the company the third-largest telecommunications provider in the world. The proposed merger created Sprint Nextel, a wireless giant with 35 million customers and a combined annual revenue of about $40 billion.

Sprint gained access to Nextel’s 15.3 million subscribers, many of whom were business customers, and avoided the need for Nextel to upgrade its network independently. The companies estimated $12 billion in savings from operating costs and network upgrades.

However, integrating the two companies proved challenging due to their differing wireless networks and clashing marketing strategies. Nextel’s popular “push-to-talk” service was primarily targeted at business users, while Sprint focused more on retail customers and data services. These differences made it difficult to merge operations smoothly, allowing competitors to steal dissatisfied customers.

13. Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP)

Year: 2018

Deal value: $27 billion

One of the biggest acquisitions in history involved ETP combining with a wholly-owned subsidiary of ETE through a unit-for-unit exchange. Target company’s shareholders received 1.28 common units of ETE for each ETP common unit they own.

The merger aimed to streamline the organizational structure, align economic interests within the Energy Transfer family, and reduce leverage. By eliminating ETE’s incentive distribution rights in ETP, the transaction lowered the cost of equity capital and provided more cash for funding organic growth and future acquisitions. The consolidation also intended to strengthen the combined entity’s balance sheet by using cash distribution savings to reduce debt and support ETP’s growth capital expenditures.

This merger aligned with a broader trend among midstream operators adjusting their corporate structures due to changes in Federal Energy Regulatory Commission (FERC) policy affecting MLP tax benefits.

14. London Stock Exchange and Refinitiv

Year: 2021

Deal value: $27 billion

In January 2021, the London Stock Exchange Group (LSEG) finalized one of the biggest M&A deals in history — its $27 billion acquisition of Refinitiv, a leading data and trading company. This deal was a significant milestone for LSEG, as it merged two market leaders and highly complementary global businesses.

The acquisition received all necessary regulatory approvals after LSEG agreed to several concessions, including the divestment of its stake in the Borsa Italiana group, to address regulatory concerns.

The merger positioned LSEG as a global leader in financial data and infrastructure, enhancing its ability to offer comprehensive data, trading tools, analytics, and risk management services across international financial markets.

15. HP and Autonomy

Year: 2011

Deal value: $11.7 billion

In 2011, Hewlett-Packard (HP) announced its acquisition of Autonomy for $11.7 billion, paying a premium of around 79% over the market price, making it one of the largest acquisitions of all time This move was intended to shift HP’s focus from being primarily a computer and printer maker to a software-focused enterprise services firm.

Despite unanimous approval from the boards of the two companies, the deal quickly turned problematic. HP soon uncovered that Autonomy had manipulated its financials by selling hardware as software licensing revenue. By November 2012, HP announced an $8.8 billion write-down, citing serious accounting improprieties and misrepresentations at Autonomy. This announcement led to a significant drop in HP’s share price and raised concerns about fraudulent accounting practices.

HP faced massive lawsuits from shareholders due to the fall in stock value and accusations of mismanagement. External investigations by the Serious Fraud Office, U.S. Securities and Exchange Commission, and FBI were initiated, though the SFO eventually dropped its investigation. Cultural clashes and management conflicts between HP and Autonomy exacerbated the situation, leading to further scrutiny and controversy.

Lessons learned from historic M&A deals

Now let’s see what deal makers can learn from the described corporate acquisitions:

M&A deals	Key lessons
America Online (AOL) and Time Warner	Large mergers can face significant integration issues, including cultural clashes and operational difficulties. Anticipating changes in the market and technology is crucial. AOL-Time Warner struggled with the shift toward broadband and digital media.
China Shenhua Group and China Guodian Corporation	Merging companies in the same industry can create strong synergies and economies of scale, especially in energy and resources. Large mergers may attract scrutiny from regulators, affecting deal approvals and integration.
ChemChina and Sinochem	Merging can facilitate global expansion and diversification, particularly in sectors like chemicals where scale matters. Cultural and managerial integration is essential for success, especially in cross-border deals.
United Technologies and Raytheon	Combining companies with complementary strengths can enhance innovation and market position. Maintaining focus on core business areas while integrating can drive long-term success.
Dow Chemical and DuPont	Sometimes, breaking up a merged entity into smaller, focused businesses can create value for shareholders. Ensure that the strategic fit between merging companies is strong to maximize value and synergies.
Pfizer and Warner-Lambert	In the pharmaceutical industry, combining companies can enhance R&D capabilities and product portfolios. Navigating regulatory approvals is crucial, particularly in highly regulated industries like pharmaceuticals.
Microsoft and Activision Blizzard	Integrating technology platforms can create new growth opportunities and enhance competitive advantage. Understanding market trends, such as the rise of gaming and digital entertainment, is vital for strategic mergers.
Walt Disney Company and 21st Century Fox	Merging to gain control over content and intellectual property can strengthen market position in media and entertainment. Large media deals often face antitrust scrutiny, which can affect deal structure and timing.
ExxonMobil and Pioneer Natural Resources	Mergers in the energy sector can optimize resource management and enhance production capabilities. Fluctuations in commodity prices can impact the value and timing of energy sector mergers.
H.J. Heinz Co. and Kraft Foods Group	Combining brands can create a stronger portfolio and increase market share in the food industry. Mergers often aim to achieve cost savings through efficiencies and scale.
Liberty Global and Telefónica	Merging can enhance geographic reach and market penetration in the telecom sector. Cross-border deals require careful navigation of regulatory environments in different countries.
Sprint and Nextel Communications	Integrating customer bases can create opportunities for cross-selling and market expansion. Merging telecom companies can face significant operational challenges, including network integration.
Energy Transfer Equity (ETE) and Energy Transfer Partners (ETP)	Merging similar entities can simplify organizational structures and improve operational efficiency. Market conditions, such as fluctuating energy prices, can impact the success of such mergers.
London Stock Exchange and Refinitiv	Acquiring data and technology firms can enhance market offerings and competitive edge in financial services. Financial services deals often require extensive regulatory approval, impacting deal timing and structure.
HP and Autonomy	Acquiring technology firms can be risky, especially if integration doesn’t go as planned. Thorough due diligence is essential to assess the true value and potential issues of the target company.

Key takeaways

• Many high-value mergers face significant integration issues, such as cultural clashes and operational difficulties. Companies must anticipate and plan for these challenges to maximize the value of the deal.

• Mergers and acquisitions should align with strategic goals and create synergies. Whether it’s enhancing R&D capabilities, expanding geographic reach, or optimizing resources, a strong strategic fit can drive long-term success.

• Large mergers often face regulatory scrutiny and are influenced by market conditions. Understanding these factors is essential for navigating approvals and managing the timing and structure of the deal.

Studying past M&A transactions provides valuable insights into the complexities and challenges of high-value business deals. By analyzing these historic transactions, companies can better understand the importance of thorough due diligence, strategic alignment, and effective integration planning.

The tech market has been the top sector in terms of M&A activity for several years according to annual reports, and 2023 was no exception. 

Rapid technological advancements and companies’ urge to find new solutions to keep up with global IT development result in dynamic M&A activity, driving lots of large tech industry mergers. 

In this article, we dive into the historical context of M&A in the technology sector, listing the 11 biggest acquisitions in tech of all time.

Historical context of tech M&A

Early developments in the tech sector started between the 1970s and 1980s, with the rise of personal computers and tech giants such as Apple and Microsoft. 

Then, in the 1990s, came the dot-com boom that resulted in a surge in tech M&A activity. Many tech companies wanted to capitalize on emerging internet technologies and market opportunities. 

Despite the subsequent bursting of the dot-com bubble, the tech sector, and M&A activity within it, continued to grow, hitting $1.24 trillion worldwide at its peak in 2021.

Rapid growth in tech industry acquisitions helps develop the sector as a whole. It accelerates innovation and competitiveness, enhances global reach, and brings modernization and digitalization to the world. 

Top 11 biggest tech M&A deals

Now, let’s review the 11 biggest tech acquisitions in history.

1. Microsoft and Activision Blizzard

Year: 2023

Deal value: $69 billion

Microsoft announced its plans to acquire Activision Blizzard in 2022, and the deal was completed in 2023 after passing review from the Federal Trade Commission in the US and Competition and Markets Authority (CMA) in the UK ensuring there’s no breach in the competition law. 

With this acquisition, Microsoft aimed to give Xbox an advantage in the gaming market. Activision Blizzard is one of the world’s largest video game companies that created such famous games as Warcraft, Call of Duty, and Candy Crush.

2. EMC and Dell 

Year: 2016

Deal value: $67 billion

Dell’s acquisition of EMC, a leading provider of data storage, information security, virtualization, and analytics, was probably the biggest tech M&A deal in history at a time — it’s valued at $67 billion. 

The combined company enables organizations to unite Dell’s hardware expertise with EMC’s advanced data storage and management capabilities.

During the acquisition, Dell had to go through many regulatory and legal obstacles, including waiting for approval from the Chinese government.

Two years after the deal was closed, Dell returned to public markets, listing on the New York Stock Exchange.

3. AMD and Xilinx

Year: 2022

Deal value: $49 billion

The deal between AMD, a semiconductor company that develops computed processors and related technologies, and Xilinx, also a technology and semiconductor company, was announced in 2020 and completed in 2022.

Upon its announcement, the deal value was estimated at approximately $35 billion. However, it rose significantly over two years while the companies dealt with all the regulations, finally reaching $49 billion upon closure.

The merger aimed to leverage Xilinx’s leadership in configurable circuitry and adaptive computing solutions, complementing AMD’s high-performance CPUs and GPUs to create a diversified and robust technology portfolio.

4. Avago and Broadcom

Year: 2016

Deal value: $37 billion

Avago announced its acquisition of Broadcom, a provider of semiconductor solutions for wired and wireless communication and a supplier of connectivity chips to Apple and Samsung, in 2015. The deal was finalized in 2016.

The rationale behind the deal was to combine Broadcom’s strengths in communications semiconductors with Avago’s expertise in wired infrastructure, wireless communications, enterprise storage, and industrial markets. Thus, combined capabilities were planned to enhance competitive positioning and market reach.

The newly merged tech company got the name Broadcom Limited and was valued at $77 billion in enterprise value. 

5. IBM and Red Hat

Year: 2019

Deal value: $34 billion

Red Hat is the world’s leading provider of enterprise open-source solutions and IBM is a tech company that offers services in cloud computing, AI, digital workspace, and cybersecurity. 

IMB’s acquisition of Red Hat is an all-cash deal that’s considered one of the biggest tech mergers and acquisitions. This transaction aimed to combine IBM’s extensive enterprise IT and cloud capabilities with Red Hat’s open-source expertise, especially in hybrid cloud environments.

6. Salesforce and Slack

Year: 2021

Deal value: $27.7 billion

Salesforce, a cloud-based software company, announced its acquisition of Slack, a cloud-based team communication platform, at the end of 2020. The deal is considered one of the largest software acquisitions and successful merger examples. It was closed at $27.7 billion in 2021. 

The rationale behind the acquisition was to merge Slack’s widely used platform with Salesforce’s customer relationship management (CRM) tools, creating a unified ecosystem for enterprise communication and collaboration.

Together, Slack and Salesforce Customer 360 will give every company in the world a single source of truth for their business and a single platform for connecting employees, customers, and partners with each other and the apps they use every day.

Bret Taylor
President and COO of Salesforce

7. Microsoft and LinkedIn 

Year: 2016

Deal value: $26.2 billion

In June 2016, Microsoft and LinkedIn jointly announced that Microsoft buys LinkedIn, with the deal completing by the end of December that year. 

The acquisition aimed to integrate LinkedIn’s B2B sales tools with Microsoft’s business software to improve prospecting and synergies between the networking and tech company. Upon the deal closure, it was agreed that LinkedIn would retain its brand and culture together with its CEO Jeff Weiner.

Together we can accelerate the future growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.

Satya Nadella
Microsoft CEO

8. HP and Compaq 

Year: 2002

Deal value: $25 billion

Though being one of the largest acquisitions in tech at the time, the deal between HP and Compaq is often held up as an example of an M&A failure. 

HP’s board of directors opposed then-CEO Carly Fiorina‘s decision to enter the deal with Compaq. Fiorina resigned 4 years after the deal, when merged HP lost half of its market value.

It’s worth noting that HP made another disastrous acquisition later in 2011 when it acquired UK software company Autonomy for $11 billion. This led to a fraud lawsuit and allegation for Autonomy’s founder. HP sold a company to Micro Focus in 2016.

9. Facebook (Meta) and WhatsApp

Year: 2014

Deal value: $19 billion

Many M&A experts consider then-Facebook’s (now Meta) acquisition of WhatsApp one of the most successful mergers. 

Facebook’s acquisition of WhatsApp allowed Facebook to gain access to WhatsApp’s large and rapidly growing user base, especially in international markets where Facebook had less reach. This aims to accelerate Facebook’s ability to bring connectivity and utility to the world. 

10. Silver Lake and Qualtrics

Year: 2023

Deal value: $12.5 billion

This acquisition was completed in 2023.

Silver Lake is a global private equity firm that focuses on technology investments. Qualtrics is an experienced management company specializing in data analysis services and data collection platforms, as well as offering online survey software.

In 2018, SAP acquired Qualtrics for $8 billion but soon sold a minority stake, remaining a go-to-market partner and serving their joint clients.

In 2023, SAP sold all the Qualtrics shares to Silver Lake. 

11. Adobe and Marketo

Year: 2018

Deal value: $4.75 billion

Marketo was initially a private company offering marketing automation software that went public in 2013. In 2016, it was acquired for $1.8 billion by Vista Equity Partners, an American private equity firm known for its investing in tech businesses and software acquisitions. 

Two years later, it was acquired by Adobe for $4.75 billion. The acquisition aimed to enhance Adobe’s Experience Cloud by integrating Marketo’s robust B2B marketing automation platform and industry expertise, providing a comprehensive solution for both B2B and B2C marketing.

Key takeaways

• The tech industry was the top sector in terms of M&A activity for many years, and 2023 was no exception.

• The market peaked with a combined deal value of  $1.24 trillion worldwide in 2021.

• The most successful tech merger transactions include deals between Facebook and WhatsApp, IBM and Red Hat, Microsoft and Activision Blizzard, and Microsoft and LinkedIn.