The Study On The Motivation And Performance Of M & A Of Software And Information Technology Service Enterprises

The software and information technology service industry is a basic industry related to the national economy.Since 2000,China has issued a series of policies to create a good external environment for the development of the industry.It has developed quickly and safely and has entered the growth stage.In recent years,many enterprises in the industry have merged and acquired in order to expand their own scale,increase market share and enhance their core competitiveness.This article studies the motivations and performance of mergers and acquisitions in the software and information technology service industry in order to provide some practical suggestions for software and information technology service enterprises to improve merger and acquisition performance.After expounding the research background,research significance,research ideas and methods and expected contribution of the software and information technology service industry,this article reviews related research on the motivation and performance of mergers and acquisitions by scholars at home and abroad,and introduces the evaluation method of performance of mergers and acquisitions such as event study,financial index method,and EVA method.Then combined with the development status of software and information technology service industry and domestic and foreign merger and acquisition motivation theory,the industry merger and acquisition motivation is summarized: to achieve synergy effects,expand market power,and enhance core competitiveness.After using the financial index method to study the performance of industry mergers and acquisitions,it was found that the industry's short-term debt paying ability,profitability,and development ability were all reduced after the merger.Subsequently,a case study was conducted on the acquisition of LEZHIXING by IFLYTEK,hoping to get useful inspiration to improve the performance of mergers and acquisitions in the software and information technology service industry.When analyzing the case of IFLYTEK's M& A,the background and process of IFLYTEK's M & A was first introduced.Secondly,combined with the industry M & A motivations and IFLYTEK's own situation,it found that the reason for IFLYTEK 's mergers and acquisitions is to rely on policies and deepen the educational strategic layout;improve its core competitiveness;achieving synergy.Subsequently,the event study,financial index method,and EVA method and non-financial index method were used to analyze the performance of IFLYTEK's M & A.It was found that investors' confidence in IFLYTEK had recovered after the merger,profitability,operating ability and development ability have all been improved,and EVA has also begun to increase substantially.At the same time,the company has a strong ability to innovate and has a higher quality of employees.Overall,the performance after mergers and acquisitions has improved.Finally,the article provides some suggestions for software and information technology service enterprises to improve the performance of mergers and acquisitions: to choose merger and acquisition goals that are in line with the strategic layout of the enterprise and can enhance the core competitiveness of the enterprise,choose the right timing for mergers and acquisitions,and attach importance to the integration of resources after mergers and acquisitions.The shortcoming of this article is that the long-term M & A performance of IFLYTEK cannot be analyzed due to the limitation of the case time.The access to resources is relatively single,and the richness of the research is slightly insufficient.Therefore,further analysis and thinking are needed in the future study.