2021 was a great year for M&A worldwide, and technology continued to fuel investor appetite with 470 deals worth USD 225.7bn. In April 2021, Wirtek acquired CoreBuild, a growth-oriented IT-outsourcing company from Cluj-Napoca.
We already saw the impact of the acquisition on revenue growth in 2021, and we know that the successful integration of acquired companies is a critical driver for long-term value creation.
One of the top reasons 70% of M&A deals fail is difficulty integrating the two parties involved and making different corporate cultures work together.
The most important factor that swayed Wirtek towards the acquisition was the cultural fit. The way CoreBuild management conducts business and their care for their colleagues and clients align with Wirtek’s core values. One of our top indicators of success is developing positive relationships with clients and teammates.
“Having more people on the management team means more minds are thinking about keeping people engaged in the company. We want to make people happy. It’s easier in a large company.” Adrian Pop, PM @CoreBuild
The complementary skills of the two companies are a big part of the recipe for growth. CoreBuild brings to the equation strong skills in mobile development, knowledge, and clients in the eCommerce sector as well as an exciting project that focuses on IoT for smart homes. On the other hand, Wirtek is known for .Net expertise, front-end specialists, and electronic equipment testing skills.
As the acquisition of CoreBuild was initially based on cultural compatibility, integration is based on organic synergy.
Our approach is focused on the gradual merger of the two teams and their processes to ensure minimal friction, disruption, and business continuity. It’s essential for people from both companies to work collaboratively and decide the most effective way to move forward in the overall integration process.
“Success is defined by the fact that people stay, that people are comfortable, that they enjoy spending time with new colleagues in training and cultural events. We will take some time and do things together to get to know each other and exchange expertise over the course of the year.” Emmett King, COO @ Wirtek
Cultural alignment, change management, and communication is essential in this process. Both the leadership and the integration team are committed to creating revenue and cost synergies on multiple levels. We are sharing resources, best practices, and streamlining processes to ensure that the acquisition has the anticipated long-term impact.
“For CoreBuild, the acquisition means opportunities for growth and a fresh direction for the business. Having more people on the management team means more minds are thinking about keeping people engaged in the company” Calin Marian, Co-Founder @CoreBuild
2022 will bring more synergy between CoreBuild and Wirtek both at an administrative level and in team dynamics. The success of this merger is paving the way for future growth through acquisitions.
Key success factors of the integration:
- Prioritizing culture
- Strong integration team, with key employees on both sides engaged in the process
- Collaborative, organic process in incremental steps
Want to learn more about the acquisition process? You can read our first announcement here and find out more financial details in our 2021 Annual Report.