Acquisition
ak-wih-ZISH-un
/ˌækwɪˈzɪʃən/
The act of one company gaining control over another by buying its stock, assets, or operations.
Unlike a merger, an acquisition typically involves one company (the acquirer) buying another (the target), with the acquirer usually remaining the dominant entity.
The story behind the word. The word 'acquisition' traces its lineage back to the Latin 'acquīsītiō,' meaning 'a getting in addition,' which itself comes from 'acquīrere' – 'to get, procure.' So, when one company makes an acquisition, it's literally 'getting something in addition' to what it already possesses, adding a new piece to its corporate puzzle.
Word relationships
- Takeover: Often used interchangeably, but 'takeover' can carry a stronger connotation of gaining control, sometimes against the target's will.
- Purchase: A more general term for buying something; 'acquisition' specifically refers to a company or significant asset.
- Divestiture: Selling off assets or subsidiaries.
- Disposal: The act of getting rid of something, often assets.
Commonly confused with
- Merger: An acquisition is one company buying another, while a merger implies two companies combining more equally.
Word family
- acquire (verb): To buy or obtain an asset or object for oneself.
- acquirer (noun): A person or company that acquires something.
Collocations
- strategic acquisition
- hostile acquisition
- successful acquisition
- asset acquisition
- company acquisition
Example sentences
- "The tech giant announced its acquisition of a promising AI startup, aiming to integrate its innovative technology into their existing product line." Reporting on a corporate transaction.
- "Many companies pursue growth through acquisition, rather than organic expansion, to quickly gain market share or new capabilities." Discussing business growth strategies.
Memory hook
An 'ACQUIred' company is 'ADDED' to the existing one. ACQUIRE = ADD.
When not to use
Do not use 'acquisition' if two companies are joining forces as equals; 'merger' would be more accurate. Also, it's not typically used for personal purchases of small items.
Fun facts
- The term 'acquisition' can also refer to the asset or company that has been bought, not just the act of buying it.
Explore more words
retention, dominate, procurement, transaction, annexation, requisition
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