Vertical acquisition

(redirected from Vertical Acquisitions)

Vertical acquisition

Buying or taking over a firm in the same industry in which the acquired firm and the acquiring firm represent different steps in the production process.

Vertical Acquisition

An acquisition where one company buys another company in the same industry, but at a different stage of the production cycle. A vertical acquisition can reduce the costs of the two companies by eliminating redundant processes. It also reduces reliance of one company on another. For example, an upstream oil company can merge with a downstream oil company to streamline operations.
References in periodicals archive ?
We view the acquisition of Hong Kong AT Group as a strategic turning point in our growth plan, in that selective horizontal and vertical acquisitions will create synergies for our business and value for our shareholders,'' said Mr.
The acquisitions provide our Flightserv subsidiary with two revered brands having an annual base of business of approximately $200 million from which we can add horizontal and vertical acquisitions as well as strategic alliances.
Between PhotoMotion images(TM), our core graphics business, strategic partnerships and vertical acquisitions, we feel confident we will expand our horizons and capture our fair share of the 12.
While it is unlikely that material cable acquisitions will be made, it is possible that other vertical acquisitions could be pursued, although none have been identified.
Best Software, created through a series of both horizontal and vertical acquisitions, announced several new programs designed to offer consistent, world-class support, and easy migration and integration among some of the industry's most widely used and recognized business management solutions.
and National Leisure Group and will be focusing on growing these units through internal growth and/or selective vertical acquisitions.