Businesses acquire other businesses to build on their strengths. The acquiring company (predator) acquires the company (target) to strengthen its position.
Several acquisitions have occurred recently in the Virginia and DC area and this article covers the following companies:
- Shady Grove Fertility & Georgia Reproductive Services
- Accenture & Search Technologies
- Government Properties Income Trust & First Potomac Realty Trust
Here is more information on each of the above:
Shady Grove Fertility acquiring Georgia Reproductive Services
Shady Grove Fertility (SGF) is a world a leader and a renowned specialist fertility clinic that offers a wide range of fertility treatments at an affordable price. The fertility center has branches in 25 locations found in Pennsylvania, Maryland, Washington and Virginia.
Georgia Reproductive Services (GRS) is a leader in clinical laboratory services aimed at helping couples deal with infertility-related challenges. They operate in the Georgia area in four locations which are located in Alpharetta, Sandy Springs, Buckhead, and Decatur.
The predator, Shady Grove Fertility merged with the target company, Georgia Reproductive Services, in a bid to expand the reach of the Rockville company to newer locations where it previously had no branches.
The merger saw GRS lose and take up the predator’s name. After the merger, GRS changed its name to SGF Atlanta bringing all its branches to the predator company, while retaining SGF’s CEO Mark Segal as the CEO of the merged company.
The exact details of the merger remain undisclosed.
Accenture acquiring Search Technologies
Accenture is a Fortune Global 500 company that offers management and specialized professional services that include digital technology, consulting, strategy and operational services. The company has over 390,000 employees, serving its clients who are located in more than 120 countries including the US. Its current clientele includes over three-quarters of Fortune Global 500 companies and about 94 Fortune Global 100 companies.
Search Technologies is a world leader in the design, management and implementation of search and big data analytics, headquartered in Herndon, Virginia. Its clientele includes over 800 companies in industries such as e-commerce, media, publishing, professional staffing, financial services, government sectors, as well as manufacturing.
Accenture’s move to acquire Search Technologies will see it benefit from the target company’s brand learning and technology service as well as its proprietary content processing framework.
Accenture is a leader in digital transformation while Search Technologies is a force in branding, marketing and sales. The staff from the target company will be posted to various departments within Accenture to ensure that their expertise is leveraged and that the combined company performs as expected.
The exact details of the merger are not available.
Government Properties Income Trust acquiring First Potomac Realty Trust
Government Properties Income Trust, commonly known as GOV, is a real estate investment trust (REIT) that owns properties in the US which are primarily leased out to government tenants. Most of these properties are office buildings. The company has its corporate headquarters in the Bay State of Massachusetts.
First Potomac Realty Trust, abbreviated as FPO, is a self-managed REIT whose primary focus is in operating, owning and redeveloping business parks and office buildings.
The intended acquisition of FPO by GOV has been approved by GOV’s Board of Trustees and is estimated to cost GOV about $1.4 billion. The predator is pushing for this acquisition because it believes that the target company has office properties leased to clients in metropolitan Washington, DC. This area is considered to be a prime location because it is one of the largest beneficiaries of spending by the US government.
All the acquisitions discussed above were intended to bring some strength to the acquiring company. SGF will benefit from an increase in client base from Atlanta, Accenture will benefit from the branding, marketing and sales capabilities of Search Technologies, while GOV stands to benefit from owning property in the prime Washington, DC area.
This deal is pending the approval of FPO’s common shareholders.