Innovation through competence-based acquisitions: The case of Synopsys

Tue M. Søiberg & Sune M. Løvsø

Student thesis: Master thesis

Abstract

!is thesis explores how high tech companies can use competence-based acquisitions to create value in their innovation strategy. A broad litera¬ture review forms the foundation for the development of an integrative model on e"ective technological acquisition (ETA). !e developed ETA-model incorporates recent research on e"ective integration, high tech industry dynamics, and corporate strategic acqusitional competences. By utilizing a processual view on acquisitions, the model is used to analyze acquisitions on three levels: process, individual and structural. !e ETA-model is tested and evolved using a sample of 46 acquisitions conducted from 1994 to 2012 in the highly technological advanced and competence-dependent Electronic Design Automation (EDA) industry. !e thesis contributes to the established body of Merger and Acquisition (M&A) literature with a more processual view on acquisitions and integration within several topics. !is thesis clari#es that a high tech industry’s Human Capital can be e"ectively optimized through acquisitions. !is process can create value, and it is found that high tech companies are able to develop and use acquisition competences to innovate. !us, acquiring competences and technology can be an e"ective high tech innovation strategy. On the other hand successful acquisitions will depend on #rms having complementary assets. !ese #ndings are linked to technological roadmaps and business ecosystems, and show how these concepts can guide and enhance high tech acquisitions. !e thesis also #nds that in order to create value from acquisitions, high tech acquirers must prioritize suitable integration processes by focusing on the level of integration, which dictates the integration speed.

EducationsMSc in Management of Innovation and Business Development, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2013
Number of pages133