What is the difference between acquisition and merger?

An acquisition is when one company buys another company and takes control of it. A merger is when two companies combine to form a new entity, usually more as equals. In an acquisition, the target company typically loses its independence, while in a merger, both companies may maintain some level of identity or control.

How do you use acquisition in a sentence at work?

You can use it to describe completed deals: 'Our acquisition of Company X closed last quarter.' Or to discuss future plans: 'We are exploring the acquisition of a smaller competitor.' You can also use it as an adjective: 'The acquisition team is negotiating final terms.'

Is acquisition formal or informal?

Acquisition is a formal business term. It is appropriate for meetings, presentations, official communications, and formal business discussions. While you may hear it in casual office conversations, it is distinctly professional language rather than casual or slang.

Why do tech companies make acquisitions?

Tech companies acquire other companies to gain new technology, expand their product offerings, acquire talented engineering teams, enter new markets, or accelerate development of strategic initiatives. It is often faster to buy a company with existing technology or expertise than to build it internally.

Acquisition meaning in tech — Speak Tech English

Commonness	4/5
Versatility	4/5
Formality	CasualFormalFormal
Spoken ↔ Written	SpokenWrittenBoth
Directness ↔ Diplomatic	DirectDiplomaticNeutral
Region	US and UK

Say it like this

✓We are in acquisition talks with Company X.

✓The acquisition closed last quarter.

✓This was a strategic acquisition to strengthen our position.

Real examples

in a standup

"The acquisition of the AI startup has accelerated our machine learning capabilities by six months."

in an all-hands meeting

"Following the acquisition, we will integrate their team into our engineering division over the next three months."

in a team meeting

"We need to plan how the acquisition impacts our product roadmap and timeline."

Don't say this

Handle with care. Often confused with 'merger' or 'purchase'. Acquisition implies one company buys and absorbs another, not a partnership of equals. Also sometimes incorrectly used to mean 'obtaining' data or resources.

✕We are acquiring new users through the acquisition of the platform.

✓We are acquiring new users by purchasing the platform. OR We acquired the platform to expand our user base.— Using acquisition twice in the same sentence is awkward. Use 'acquiring' (verb) for the active process and 'acquisition' (noun) for the transaction separately.

✕The two companies agreed to an acquisition and merge.

✓The two companies agreed to a merger. OR Company A agreed to the acquisition of Company B.— An acquisition is when one company buys another; a merger is when two companies combine as equals. These terms are mutually exclusive.

✕We made a successful acquisition of five engineers.

✓We successfully hired five engineers. OR We acquired engineering talent from the startup.— You do not acquire individual people in business English; you hire or recruit them. Acquisition applies to companies or major business units.

Other forms

noun

acquisition

"The acquisition was completed in Q3 of this year."

verb

acquire

"Our company plans to acquire a cybersecurity firm next year."

adjective

acquired

"The acquired company will operate as a separate division."

Often used with

strategic acquisitionAn acquisition designed to achieve a specific business goal or competitive advantage.

acquisition priceThe amount of money paid to purchase another company.

acquisition targetA company that is being considered for purchase.

acquisition dealThe agreement and negotiations involved in purchasing a company.

hostile acquisitionA purchase made against the will of the target company's management.

Similar words

purchaseMore general term; acquisition implies buying a whole company or major division, while purchase can be smaller.

buyoutSimilar meaning, often used when a company or investor buys controlling interest.

takeoverCan imply a more aggressive or sudden acquisition, sometimes without the target company's agreement.

Opposites

divestmentspin-offsale

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Practice

Try it

4 quick exercises

Pick the most natural phrasing

1. Your company just bought another startup. How would you most naturally say this in a meeting?

We completed the acquisition of TechStart Inc.We did an acquisition to TechStart Inc.We are acquiring TechStart Inc. last week.We acquired ourselves to TechStart Inc.

Complete the sentence

2. The _______ of the cloud platform will give us access to their infrastructure and expertise.

Spot the mistake

3. Which sentence uses 'acquisition' incorrectly?

The acquisition was announced to shareholders last month.We acquired 200 new customers through targeted marketing.Following the acquisition, both companies will integrate their operations.The acquisition price exceeded our initial budget.

Rewrite naturally

4. Rewrite this sentence using 'acquisition': 'We bought a smaller company that makes security software, and now they work for us.'

Questions

Quick poll

Have you said "acquisition" in a standup this week?

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