DEFINITION of 'Acquiree'

The company that is being acquired or purchased in a merger or acquisition. The acquiree is also known as the "target firm".

Usually the acquiree will see a short-term movement in the price of its shares to resemble the price per share that was paid by the acquirer. This can be a positive or negative amount.


For example if ABC firm is trading at $12 per share and has 100,000 shares outstanding when it's acquired for 2 million by firm DEF, then ABC's share price should jump to approximately $20 per share (2,000,000/100,000 = 20).

  1. Acquisition

    A corporate action in which a company buys most, if not all, ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for ...
  3. No-Shop Clause

    A clause in an agreement between a seller and a potential buyer ...
  4. Acquisition Financing

    The capital that is obtained for the purpose of buying another ...
  5. Merger

    The combining of two or more companies, generally by offering ...
  6. Target Firm

    A company which is the subject of a merger or acquisition attempt. ...
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