Unity Bank- Merger and Acquisition
1. Case Name: Unity Bank- Realizing value from an M&A integration
2. Problem Statement
The primary question of the case is:
Unity Bank has acquired Delta to realize its dream of becoming the World No 1 provider of share registry services. The primary problem is “How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the Target savings?” The secondary question of the case is:
The integration posed multiple challenges but it was critical to infuse the integration without affecting the existing business processes of both companies.
3. Background
a. Describe the acquirer company/department
1) History
- Unity bank was founded in South Africa in 1982 and employed around 8000 people worldwide and had market capitalization of approximately $2 billion
- Provider of global shareholder and employee management services
- Manages 60 million shareholder accounts for over 10000 corporations across 12 countries on 5 continents
- Unity bank provided full range of transfer agency services including share registry administration etc 2) Conditions
- Unity bank envisioned to become the World no 1 provider of share registry services
3) Culture
- The bank had a professional workforce
- The staff were given incentives and provided innovative projects
- IT services of Unity bank were robust and effective.
4) Strengths
- Few providers of global shareholder and employee management services
- Large customer base
- Provided full range of transfer agency services
- Ability to manage most complex and largest corporate actions
- Professionalism of staff members and nature of their expertise
- Ability to attract talented operations and IT professionals and retain them over a long term
- Offered professional but family oriented work culture
- Strong IT infrastructure providing sizable entry barrier and economies of scale
- Robust enterprise system BLAIR
2. Problem Statement
The primary question of the case is:
Unity Bank has acquired Delta to realize its dream of becoming the World No 1 provider of share registry services. The primary problem is “How to successfully integrate Unity Bank and Delta within the specified timeframe and simultaneously achieve the Target savings?” The secondary question of the case is:
The integration posed multiple challenges but it was critical to infuse the integration without affecting the existing business processes of both companies.
3. Background
a. Describe the acquirer company/department
1) History
- Unity bank was founded in South Africa in 1982 and employed around 8000 people worldwide and had market capitalization of approximately $2 billion
- Provider of global shareholder and employee management services
- Manages 60 million shareholder accounts for over 10000 corporations across 12 countries on 5 continents
- Unity bank provided full range of transfer agency services including share registry administration etc 2) Conditions
- Unity bank envisioned to become the World no 1 provider of share registry services
3) Culture
- The bank had a professional workforce
- The staff were given incentives and provided innovative projects
- IT services of Unity bank were robust and effective.
4) Strengths
- Few providers of global shareholder and employee management services
- Large customer base
- Provided full range of transfer agency services
- Ability to manage most complex and largest corporate actions
- Professionalism of staff members and nature of their expertise
- Ability to attract talented operations and IT professionals and retain them over a long term
- Offered professional but family oriented work culture
- Strong IT infrastructure providing sizable entry barrier and economies of scale
- Robust enterprise system BLAIR