Acquisition is strategy which is used to purchase controlling stake (more than 50% shares) or 100 percent of the interest of another company which thereby makes it their subsidiary company (Mkwawa, 2018). "Banks should look into acquiring some fintech companies that fit their cause since the future of banking is digital banking so they are facing with the choice to either adapt to digital revolution or lose market share (Mkwawa, 2018).” Acquisition not only helps to grow network and presence in the market it also reduces the possibility of competition to grow.
Dallas based Onit Communication Inc.'s acquisition of Tel West Network Service Corporation has boosted the revenue of the company three folds. The acquisition strategy was focused in providing growth in areas where they could provide full services to small and mid range customers such as web hosting, use of VoIP solutions, servers, and email services (Business Wire, 2005). Onit’s reach into a separate market niche was boosted overnight without having to do all the hard work. The acquisition saved time to penetrate the market, stretch their reach and increase the revenue.
Citizens Bank is the first bank to acquire another company after the central bank issued acquisition bylaw in Nepal. It first acquired Nepal Housing and Merchant Finance Ltd and then followed it by acquiring People’s Finance Ltd and then Premier Finance Co Ltd increasing its capital by Rs. 3.1 billion and increased its branch to 58 location and serving through another 93 branchless banking (Republica, 2016). The acquisition has not only increased the capital and asset of the company but has also spread its presence to multiple locations through its new subsidiary company.
These are some of the examples of companies that have gone through acquisition gaining growth and presence in the market.
References
Business Wire. (2005, July 26). ONIT Acquisition Strategy Helps Triple Q2 Revenue; Acquisition Strategy Results in 300% Revenue Increase Over Q1 2005. Business Wire; New York .
Mkwawa, K. (2018, June 22). BANKING TIPS: Mergers, acquisitions as growth strategy acquisitions strategy for growth. The Citizen; Dar es Salaam .
Republica. (2016, July 17). Citizens Bank acquires Premier Finance. myRepublica.
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Acquisition is strategy which is used to purchase controlling stake (more than 50% shares) or 100 percent of the interest of another company which thereby makes it their subsidiary company (Mkwawa, 2018). "Banks should look into acquiring some fintech companies that fit their cause since the future of banking is digital banking so they are facing with the choice to either adapt to digital revolution or lose market share (Mkwawa, 2018).” Acquisition not only helps to grow network and presence in the market it also reduces the possibility of competition to grow.
Dallas based Onit Communication Inc.'s acquisition of Tel West Network Service Corporation has boosted the revenue of the company three folds. The acquisition strategy was focused in providing growth in areas where they could provide full services to small and mid range customers such as web hosting, use of VoIP solutions, servers, and email services (Business Wire, 2005). Onit’s reach into a separate market niche was boosted overnight without having to do all the hard work. The acquisition saved time to penetrate the market, stretch their reach and increase the revenue.
Citizens Bank is the first bank to acquire another company after the central bank issued acquisition bylaw in Nepal. It first acquired Nepal Housing and Merchant Finance Ltd and then followed it by acquiring People’s Finance Ltd and then Premier Finance Co Ltd increasing its capital by Rs. 3.1 billion and increased its branch to 58 location and serving through another 93 branchless banking (Republica, 2016). The acquisition has not only increased the capital and asset of the company but has also spread its presence to multiple locations through its new subsidiary company.
These are some of the examples of companies that have gone through acquisition gaining growth and presence in the market.
References
Business Wire. (2005, July 26). ONIT Acquisition Strategy Helps Triple Q2 Revenue; Acquisition Strategy Results in 300% Revenue Increase Over Q1 2005. Business Wire; New York .
Mkwawa, K. (2018, June 22). BANKING TIPS: Mergers, acquisitions as growth strategy acquisitions strategy for growth. The Citizen; Dar es Salaam .
Republica. (2016, July 17). Citizens Bank acquires Premier Finance. myRepublica.