Case Study On The Performance Of Super Map's Acquisition Of Guotu Information Industry Company Limited

With the rapid development of economy and the continuous expansion of the application scope of information technology,the competition among enterprises in China is also increasing.Among these industries in China,the competition in the information technology industry is the most intense.Although the technical barriers of the information technology industry are high and it is difficult for enterprises to enter the industry,the market will come out a large number of new entrants every year due to the small scale of capital required for registration.In order to reduce the threat of new entrants to the development of existing companies in the industry and improve the market share of enterprises,most enterprises usually choose M & A for scale expansion.In order to seek strategic transformation,traditional manufacturing enterprises usually choose to carry out cross industry M & A,while information technology enterprises are in the stage of national support and rapid market development,most enterprises in the industry will choose to carry out the same industry M & A to expand their business scale.Compared with cross industry M & A,the same or similar main business,the same business philosophy and other reasons,the difficulties of integration of enterprises are small and the success rate of M & A is high after M & A.Therefore,M & A in the same industry has become the main way for enterprises to expand market scale and enhance market competitiveness.SuperMap Software and Guotu Information Industry are leading enterprises in GIS industry and they have a large market in the field of GIS basic platform and GIS application platform.This paper takes the case of the acquisition of Guotu Information Industry by SuperMap Software as the research object.Firstly,this paper classifies and combs the relevant theories and literatures at home and abroad.Then it briefly analyzes the causes and risks of the acquisition.Finally,the paper combines the financial index analysis,event research and non-financial index analysis to evaluate the performance of the acquisition.The market has made a positive response before the announcement of the event.After the announcement cooled down,the stock price fell back to the normal level.Therefore,the impact of M & A on short-term market performance is more significant.Based on the vertical comparative analysis of the financial indicators of SuperMap Software in 2013-2018 and the horizontal comparative analysis with the same industry,this paper finds that,except for the debt paying ability,the company's profitability,operation ability and growth ability all have been improved after the acquisition.This acquisition has a significant impact on the financial performance of SuperMap Software.After the merger and acquisition,the personnel quality of SuperMap Software is constantly improving,and the functions of GIS software and real estate subdivision application software that the company is mainly engaged in are also constantly improving.The future development momentum of the enterprise is well.The research results of this M & A show that the SuperMap Software has improved the industrial chain layout and successfully entered the emerging real estate subdivision application field.It improved the profitability of the company,enhanced the sustainable development ability of both sides of the enterprise,and provided some experience for the future M & A activities between enterprises in the same industry.M & A among enterprises in the same industry helps to integrate upstream and downstream enterprises in the industrial chain and expand their market scale.Compared with cross industry M & A,it is less difficult to integrate after M & A and easier to achieve synergy effect.However,the performance of the company after M & A is also affected by many factors,such as the choice of the target company before M & A,the choice of the payment method of the consideration of M & A,and the efficient integration work after M & A.Therefore,before carrying out M & A activities,enterprises should carefully choose the target company of M & A,reasonably design the proportion of cash consideration and stock consideration in consideration according to their own cash flow situation.In addition,the enterprise also needs to understand the goal that the M & A wants to achieve in order to carry out the follow-up resource integration work efficiently.The company should adjust the integration plan after the M & A according to the performance of the enterprise after the M & A,so that it can make the future development of the enterprise more stable.