reverse acquisition

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Reverse Acquisition

An act where a private company purchases a publicly traded company and shifts its management into the latter. It also normally involves renaming the publicly traded company. This allows private companies to become publicly traded while avoiding the regulatory and financial requirements associated with an IPO. In order for a reverse acquisition to happen smoothly, the publicly traded company is usually a shell corporation, that is, one with only an organizational structure and little or no activity. The two businesses can then merge the private company's product(s) with the public company's structure. It also makes initial trading less dependent on market conditions, a key risk in IPOs. However, it is important to note that a reverse acquisition only provides the private company with more liquidity if there is a real market interest in it.

reverse acquisition

An acquisition in which the company taken over becomes the surviving entity. A reverse acquisition is sometimes used to acquire and convert a private company into a public company without being required to go through a lengthy registration process.
References in periodicals archive ?
We're very proud to celebrate this tenth anniversary as a successful RTOS company," commented William E.
The Nucleus RTOS is based on a royalty-free business model that enables consumer electronics manufacturers, who generally ship in large volumes, to save money.
Licenses for the Nucleus RTOS software begin at $12,495 and licenses for the EDGE Tool Suite begin at U.
The MQX RTOS is a popular, high performance, small footprint and royalty-free RTOS that supports most 32-bit processors including ARC, ARM, ColdFire and PowerPC.
Joel Mattox, director of marketing of MQX Embedded, said, "By working with a leading provider of advanced debugging technology, customers utilizing iSYSTEMS products and the MQX RTOS and MetaWare compiler will benefit by realizing reduced development time and time-to-market.
Profiles of Existing ISOs, RTOs , Independent Transmission Companies (ITCs), and Merchant Transmission Companies
With RTXC Quadros dual-mode RTOS (RTXC/dm), Quadros Systems is able to optimize both the RISC and DSP capabilities of the processor.
OS Changer Solutions allows developers to easily port existing code base to another RTOS and continue code development using the familiar API.
This is nearly twice the growth reported for any other RTOS supplier.
NASDAQ:MIPS), a leading provider of industry-standard processor architectures and cores for digital consumer and business applications, today announced the availability of Express Logic's ThreadX RTOS for the MIPS32(R) 24K(R) and 4KE(TM) processor core families.