Diversification Acquisition

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Dictionary Says

Definition of 'Diversification Acquisition'

A corporate action in which a company purchases a controlling interest in another company in order to expand its product and service offerings. One way to determine if a takeover is a diversification acquisition is if the two companies have different Standard Industrial Classification (SIC) codes, meaning that they conduct different types of business activities.
Investopedia Says

Investopedia explains 'Diversification Acquisition'

A takeover between two companies that share the same SIC code is considered a "related" acquisition.

Conglomerates are often involved in diversified acquisitions either to minimize the potential risks of one business component/industry not performing well in the future or to maximize on the synergies and revenue streams of a diverse operations.

Search results for

'Diversification Acquisition'

  • Stryker's Diversification Paying Off

    http://stocks.investopedia.com/stock-analysis/2011/Strykers-Diversification-Paying-Off-SYK-JNJ-HRC-ZMH-NUVA-ATEC-BSX0722.aspx
    ... Stryker's Diversification Paying Off. ... and Stryker can use that cash to acquire or
    invest in new opportunities - like the company's acquisition of Boston ...

  • Carlisle Companies' Diversification Success

    http://stocks.investopedia.com/stock-analysis/2011/Carlisle-Companies-Diversification-Success-CSL-CR-HSC-SPW-TFX0307.aspx
    ... Prior to the acquisition, its brake and tire businesses were part of one unit ... it
    has seen many highs and lows, with the current diversification push originating ...

  • Abbott Has Benefited From Its Diversification

    http://stocks.investopedia.com/stock-analysis/2011/Abbott-Has-Benefited-From-Its-Diversification-ABT-PFE-JNJ-MRK-MDT1025.aspx
    ... Abbott Has Benefited From Its Diversification. ... It also leaves both open to acquisition
    by purer play rivals, including medical device giant and pharma leaders ...

  • Qualcomm Takes Another Shot At Diversification

    http://stocks.investopedia.com/stock-analysis/2011/Qualcomm-Takes-Another-Shot-At-Diversification-QCOM-ATHR-BRCM-CAVM-NETL-ATML-INTC0105.aspx
    ... With the acquisition of Atheros (Nasdaq:ATHR), though, QCOM is taking a ... this expensive
    deal than prior smaller acquisitions or organic diversification efforts. ...

  • Biggest Merger and Acquisition Disasters

    http://www.investopedia.com/articles/financial-theory/08/merger-acquisition-disasters.asp
    ... The benefits of mergers and acquisitions (M&A) include, among others: a diversification
    of product and service ... (Learn why a merger and acquisition advisor is ...

  • Conglomerates: Risky Proposition?

    http://www.investopedia.com/articles/stocks/08/risky-conglomerates.asp
    ... To Diversification and The Dangers Of Over-Diversification.) Staffing Problems ... It
    may become even more difficult if an acquisition-hungry conglomerate develops ...

  • OM Group - Unreasonably Cheap, Or Cheap For A Reason?

    http://stocks.investopedia.com/stock-analysis/2011/OM-Group---Unreasonably-Cheap-Or-Cheap-For-A-Reason-OMG-FCX-SOA-ALB-GB-STP-SCCO-AMSC1115.aspx
    ... (For related reading, see Biggest Merger And Acquisition Disasters ... one of the major
    sectors that the company has targeted with its diversification in specialty ...

  • How To Invest In Private Equity

    http://www.investopedia.com/articles/mutualfund/07/private_equity.asp
    ... Portfolio and The Benefits Of ETF Investing.) Special-Purpose Acquisition Companies
    (SPAC ... only invest in one company, which won't provide much diversification. ...

  • Introducing The "Brand" Name Portfolio

    http://stocks.investopedia.com/stock-analysis/2008/Introducing_The_Brand_Name_Portfolio.aspx
    ... Read our related article Introduction To Diversification to learn more.) Who Makes
    The ... Global Brands Acquisition (AMEX:GQN) is one of those newfangled SPAC's ...

  • Setting The Gold Standard

    http://stocks.investopedia.com/stock-analysis/2007/Setting_The_Gold_Standard_NEMGGAAUK.aspx
    ... Since the acquisition of Wheaton and the management changes that came with it, GG ...
    and gives new meaning and a shining example of the value of diversification. ...

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