Synergy
The idea that the value and performance of two companies combined will be greater than the sum of the separate individual parts.
Investopedia Commentary
This term is used mostly in the context of mergers and acquisitions. For example, if Company A has an excellent product but lousy distribution whereas Company B has a great distribution system but poor products, the companies could create synergy with a merger.
Related Links
The Wacky World of M&As
The Basics of Mergers and Acquisitions
See also: Acquisition, Merger
synergy
synergy syn·er·gy (sĭn'ər-jē)
n.
The interaction of two or more agents or forces so that their combined effect is greater than the sum of their individual effects.