Cost Synergy

Cost Synergy

The financial benefit two companies may derive from a merger or acquisition. For example, two companies that merge may be able to produce more revenue than either one could independently by combining the most efficient processes each brings to the merger. Cost synergy may also refer to the cost reduction a merger brings about by eliminating or streamlining redundant processes. Cost synergy usually has a positive connotation; as a result, press releases and media reports often use the term to refer to layoffs following a merger that are intended to make the newly merged company more efficient.
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The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (1) whether the stockholders of Broadwing approve the proposed transaction; (2) the satisfaction of the other conditions specified in the merger agreement, including without limitation the receipt of required governmental approvals of the proposed transaction; (3) the ability to successfully combine the businesses of Level 3 and Broadwing; (4) the realization of revenue and cost synergy benefits from the proposed transaction; and (5) operating costs, customer loss and business disruption following the merger, including adverse effects on relationships with employees.
Forward-looking statements include specifically, but are not limited to, proforma revenue projections, cost synergy projections, earnings per share accretion predictions, and cash flow predictions for Per-Se; total debt to be raised by Per-Se; and the timing of the closing of the transaction.
A[paragraph]The Company expects to achieve an annual cost synergy run rate of approximately $25 million in the 18 to 24 months after the close of the merger from procurement savings, the integration of complementary operations, selling, general and administrative cost reductions, and the application of best practices at plant operations.
The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: (1) satisfaction of the conditions specified in the transaction agreement, including without limitation the receipt of required governmental and other third-party approvals of the proposed transaction; (2) the ability to successfully combine the businesses of NBC and VUE; (3) the realization of revenue and cost synergy benefits from the proposed transaction; (4) operating costs and business disruption following the merger, including adverse effects on relationships with employees; (5) changes in the stock market and interest rate environment that affect revenues; and (6) competition.
We will enhance our market-leading client service and achieve our cost synergy targets, creating value for our stockholders, while continuing to provide clients the highest quality service.
The cost synergy announced at the time of the preliminary results is being achieved and merged operations are functioning smoothly.