Tuck-In Acquisition

Tuck-In Acquisition

The acquisition of a company made for the sole purpose of merging it into a division of the acquirer. Sometimes referred to as "bolt-on acquisitions."

Notes:

This type of corporate strategy is generally used to acquire companies with technological breakthroughs or comparative advantages at a cost less than implementing the changes themselves.

See also: Acquisition, Hostile Takeover, Merger, Target Firm