acquirer

noun

ac·quir·er | \ə-ˈkwī(-ə)r-ər

Definition of acquirer

: one that acquires especially : a company that acquires another company

Examples of acquirer in a Sentence

Recent Examples on the Web

Tech companies are often timid about trash-talking competitors; the industry is small enough that a competitor one day can be a partner or acquirer the next. — Erin Griffith, WIRED, "The Airbnb Challenger You've Never Heard of (by Name)," 2 July 2018 While any contender in theory could use Machado, the pool of potential acquirers is realistically limited to those with holes at shortstop or third—the Phillies, Brewers, Diamondbacks and possibly the Dodgers. — Si.com Staff, SI.com, "Midseason Roundtable: The SI Staff Makes Some Second-Half Predictions," 11 July 2018 Amazon is widely viewed as a potential acquirer of a film studio. — Claire Atkinson, NBC News, "Viacom CEO is sitting out Sun Valley, the famous dealmakers get together," 26 June 2018 In merger arbitrage, the arbitrager typically shorts, or bets against, the acquirer. — Gunjan Banerji, WSJ, "Hedge Funds Poised to Be Winners in AT&T-Time Warner Deal," 13 June 2018 The tech giants have been avid acquirers: Alphabet, Amazon, Apple, Facebook and Microsoft spent a combined $31.6bn on acquisitions in 2017. — The Economist, "American tech giants are making life tough for startups," 31 May 2018 Their attorneys argue that Jacobson, Keegan, and the board pursued a deal with the only logical buyer, when no other acquirers were interested. — Shawn Tully, Fortune, "Paper Jam! How Carl Icahn And a Billionaire Partner Blocked Xerox’s Merger with Fujifilm," 21 May 2018 Allergan CEO Brent Saunders is notorious as a serial acquirer and bolt-on biotech M&A evangelist. — Sy Mukherjee, Fortune, "Rare Disease Drug Maker Shire's Stock Spikes Amid Bidding War Between Allergan and Takeda," 19 Apr. 2018 Akamai is worth nearly $13 billion today, based on its market cap, and any acquirer may need to pay a premium above that. — Jon Chesto, BostonGlobe.com, "A reprieve for Akamai — at least for now," 8 Mar. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'acquirer.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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acquirer

noun

Financial Definition of acquirer

What It Is

An acquirer is a person or company that purchases all or a portion of an asset or company.

How It Works

Company XYZ wants to acquire Company ABC. Company XYZ might just start buying ABC shares on the open market, but once Company XYZ acquires 5% of ABC, it must formally (and publicly) declare how many shares it owns to the Securities and Exchange Commission. Company XYZ must also state whether it intends to buy ABC or just hold its existing shares as an investment. In either case, Company XYZ is an acquirer. The term is mostly used in the context of purchasing a majority of another company, however.

Why It Matters

Acquirers often make acquisitions with cash, but they also use debt and their own stock as well, and there are often tax consequences associated with each form of currency.

Acquirers acquire other companies because they think they can create a bigger, more competitive, more cost-efficient entity. This synergy -- that is, the idea that the two companies together are more valuable to the shareholders than they are apart -- is elusive, but it is what justifies most acquisitions. After all, acquirers always have the much harder option of trying to "grow their own" by starting their own competitive ventures instead of buying someone else's. Targets sell their companies to acquirers because at the end of the day, the price is right. And on both sides, a well-executed acquisition can be the crowning jewel of a CEO's career.

Source: Investing Answers