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Volume 30, Issue 3

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Thursday, 11 May 2017 19:44

IT During A Merger

Written by  JOSEPH GEORGE

At Greater Risk for an IT Disaster? According to the Harvard Business Review, 60 percent of all mergers and acquisitions (M&A) end up destroying shareholder value. While much of this failure is caused by a strategic mismatch between the two organizations, smooth integration of the operations of the organizations – especially the IT infrastructure – is also critical to the long-term success of a merger. The airline industry offers a case in point, where customers, regulators, and industry analysts are left wondering if the string of well-publicized IT outages that left thousands of passengers stranded are a side effect of the long line of airline mergers. American acquired TWA in 2001; US Airways merged with American West in 2005, and then with American in 2015. Delta merged with Northwest in 2008; and United merged with Continental in 2010. Five years after its merger with Continental, the Wall Street Journal reported that United’s