These example sentences are selected automatically from various online news sources to reflect current usage of the word 'acquiree.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
An acquiree, also called a target, is a company that is purchased by an acquirer.
How It Works
Company XYZ has developed a powerful, new search-engine widget. Several search-engine companies may be interested in purchasing Company XYZ to keep Company XYZ's technology proprietary, and so Company XYZ may become an acquiree.
Why It Matters
It's not always easy to tell which companies are good targets, but if a company is struggling or it has a large amount of cash on its balance sheet, it's likely that other companies are evaluating the company as an acquiree. Some potential acquirers will take the next step of purchasing shares, and if they purchase more than 5% of those shares, they must report the purchase to the Securities and Exchange Commission if the acquiree is a public company. This often triggers a flurry of trading activity in the target's stock.