Acquihire
An acquihire is a strategic acquisition where the primary motivation is to hire the target company’s employees, rather than to acquire its products or services. Acquihires are common in the tech industry, where acquiring talent, particularly engineers or developers, is a top priority. This allows acquiring firms to quickly gain expertise, while the target company’s technology or products may be phased out or absorbed.
Key Takeaways
- Acquisition driven by the goal of hiring key talent.
- Common in the technology industry.
- Allows acquiring firms to gain specialized expertise.
- Product or service offerings of the target company may be phased out.
