Tuck-In Acquisition
The acquisition of a company made for the sole purpose of merging it into a division of the acquirer. Sometimes referred to as "bolt-on acquisitions."
Investopedia Commentary
This type of corporate strategy is generally used to acquire companies with technological breakthroughs or comparative advantages at a cost less than implementing the changes themselves.
Related Links
The Wacky World of M&As
The Basics of Mergers and Acquisitions
See also: Acquisition, Hostile Takeover, Merger, Target Firm
Also spelled: bolt-on acquisitions, tuck in acquisition, tuck-in acquisitions