Acquisition refers to the acquiring by one firm of another firm’s technology (process, facility, or material), product rights (trademarks), or entire businesses in order to increase its total sales. The acquisition may be related to the firm’s current business (e.g., the acquisition of a competitor, a supplier, or a buyer) or may be unrelated (e.g., the acquisition of an entirely different business).
Acquisition is a method of expanding one’s product offering by means other than internal development. Any combination that forms one company from two or more previously existing companies is known as a merger.
- ^ American Marketing Association, AMA Dictionary.