Acquisition

Acquisition
A corporate action in which a company buys most, if not all, of the target company's ownership stakes in order to assume control of the target firm. Acquisitions are often made as part of a company's growth strategy whereby it is more beneficial to take over an existing firm's operations and niche compared to expanding on its own. Acquisitions are often paid in cash, the acquiring company's stock or a combination of both.

Acquisitions can be either friendly or hostile. Friendly acquisitions occur when the target firm expresses its agreement to be acquired, whereas hostile acquisitions don't have the same agreement from the target firm and the acquiring firm needs to actively purchase large stakes of the target company in order to have a majority stake.

In either case, the acquiring company often offers a premium on the market price of the target company's shares in order to entice shareholders to sell. For example, News Corp.'s bid to acquire Dow Jones was equal to a 65% premium over the stock's market price.


Investment dictionary. . 2012.

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  • ACQUISITION — (Heb. קִנְיָן; kinyan) the act whereby a person voluntarily obtains legal rights. In Jewish law almost all kinds of rights, whether proprietary (jus in rem) or contractual (jus in personam; see obligations ), can be voluntarily acquired only by… …   Encyclopedia of Judaism

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  • acquisition — ac·qui·si·tion /ˌa kwə zi shən/ n 1: the act or action of acquiring; specif: the obtaining of controlling interest in a company compare merger, takeover 2: a thing gained or acquired …   Law dictionary

  • acquisition — Acquisition. s. m. v. Action d acquerir. Faire un contract d acquisition. depuis cette acquisition, il n est rien arrivé. On dit, Faire une acquisition, pour dire, Acquerir. Acquisition, signifie aussi, La chose acquise. Bonne acquisition. voilà… …   Dictionnaire de l'Académie française

  • Acquisition — Entwickler David Watanabe Aktuelle Version 132.7 (21. November 2006) Betriebssystem Mac OS X Kategorie Peer to Peer Lizenz …   Deutsch Wikipedia

  • Acquisition — Ac qui*si tion, n. [L. acquisitio, fr. acquirere: cf. F. acquisition. See {Acquire}.] 1. The act or process of acquiring. [1913 Webster] The acquisition or loss of a province. Macaulay. [1913 Webster] 2. Specifically: (Business, Finance) The… …   The Collaborative International Dictionary of English

  • acquisition — [n1] obtaining or receiving accretion, achievement, acquirement, acquiring, addition, attainment, buy, gain, gaining, learning, obtainment, possession, prize, procuration, procurement, procuring, property, purchase, pursuit, recovery, redemption …   New thesaurus

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