China's Software Companies After The Merger Integration Model Study

M&A(Mergers and acquisitions) is an important means of business expansion and a business major strategic action also. M&A can quickly enters a new industry, reduces competitors by industry consolidation, optimizes resource configuration and gets advanced technology by complementary advantages. M&A is also a important way to achieve the low cost of capital and high efficiency expansion and the formation of strong economies of scale. But transactions completed only the first step, how to achieve effective integration of M&A is the key point to the success of M&A. Academic and research institutions usually focus on the M&A transactions more, discussion of post-merger integration is relatively small; the theoretical analysis is more than practical analysis. There are so few research of merger integration of software companies in high-tech industries, even many big M&A cases appear in the world.This article summarizes the core assets of software companies, analyzes the integration features that enterprises use these core assets to create strategic capability, and obtains the conclusions after analyzing the three typical integration cases of UD.The study found that: the difficulty of the post-merger integration will reduce if the Chinese software companies have chosen the industry leader as acquisition targets at this stage. The select of integration mode would be used to specified integrate strategy in software enterprise, and the enterprise has most of the strategic capabilities that the acquirer does not, you can use the integrated symbiotic type; and enterprise has individual strategic capability that the acquirer does not, you can apply the symbiotic type integration; when the both sides have the most strategic capability, you can adopt symbiotic integrated model, and then use the absorb integration phase. Haspeslagh and Jemision integration mode theory in the practical application, more than one modes will be used step by step in a same integrated case. In the phase of design of integrated model, not only the two dimensions of the strategic interdependence of demand and organization autonomy will be needed, the control dimension will be needed. all these methods will adjust and correct the risk of the integration strategy in the practical application.