Information Systems Integration in Mergers and Acquisitions

Abstract: In realizing the business related synergies that are sought after in the complex activities of corporate Mergers and Acquisitions (M&As), Information Systems (IS) integration have been pointed out is an important factor. To date, this area have received limited academic attention. It has been researched from a strategy perspective, addressing issues on a high level aimed foundational long term aspects; as well as from a process perspective focusing on the integration process. No existing research perspective addresses issues regarding what Information Systems should be integrated how in a specific M&A situation. This study proposes the perspective of Enterprise Architecture, as it offers a link between business and IT components, and for its abilities to communicate a vision. The purpose of the study is To create a synthesized framework from existing theory and for analyzing and describing IS integration on a business activity level in a M&A context, and to empirically test the framework. This is done by applying a research strategy consisting of two parts. Firstly, a theoretically grounded framework is created, consisting of the dimensions of Business Activity Integration, IS Integration approach and Strategic view of IS. These dimensions are conceptualized at the business activity level of analysis. This framework includes theoretically deduced relationships, visualized in a relational model in the form of a matrix. Secondly, this framework is tested by the means of one primary case: the acquisition of Chase-Walton by Trelleborg Sealing Solutions, which builds on six interviews; and two reference cases consisting of secondary data. The main contribution of the study is a theoretically grounded framework, that addresses how business activity level integration is related to IS integration approaches. In this framework the analysis level of business activity, as well as the Enterprise Architecture are key features. The results point to the conclusion that both the analysis level of business activities as well as the Enterprise architecture perspective are well suited to analyze and describe IS integration in specific M&A situations.