In Oregon and elsewhere, mergers and acquisitions are a common business activity that serves an important purpose for existing companies. For a company that wants to grow in certain activities, increase its geographical locations or offer new products, mergers and acquisitions is a strong option that is available. This method of business formation is very effective and generates solutions that can be quickly implemented.
There are always intended consequences when a business decides to engage in the acquisition of another business. This often relates to the need to grow the company in services and product offerings that are seen as necessary to achieving the business plan. For example, one fairly substantial acquisition occurred recently between Altair Engineering Inc. and Datawatch Corp. Altair paid $13.10 per each share of Datawatch for a deal estimated as having a value of $167 million.
The deal had been announced in November and was completed on Dec. 13. The engineering consulting firm obtained data processing services and data high-volume visualization technologies from Datawatch. The acquired company had a focus and foothold in financial services and capital markets, thus giving Altair the ability to enter those markets, according to Altair’s CEO, who issued a written statement at the company’s Michigan headquarters
Altair has about 2,000 employees in 24 countries. The transaction illustrates how a growing company can enter new market sectors based on a focused acquisition of a company that already has a foothold in the designated business area. Instead of attempting business formation in certain sectors from scratch, the acquiring company is able to integrate new business activities into its portfolio quickly and more effectively. In Oregon and elsewhere, such transactions require the retention of experienced mergers and acquisitions legal counsel to navigate the complex web of legalities that are involved.