The Role API Integration Plays in Mergers and Acquisitions

Mergers and Acquisitions of businesses

Our API integration technology proves essential in seamless expansion with eBridge

By Dave Malda, Sales Manager for E-Commerce & EDI Integration Solutions

Mergers and acquisitions (M&A) activity spiked globally in 2021, nearing the peak highs seen in 2007 and 2015, and is expected to continue rising throughout 2022. It’s no secret, however, that an overwhelming majority of these deals—anywhere from 70 to 90 percent, as estimated by the Harvard Business Review—aren’t just failures, but abysmal failures.

Where and why do so many go off track? Along with limited owner involvement and inaccurate valuations, insufficient IT integration is frequently a contributing factor.

After all, no two organizations rely on the same systems, applications, and workflows. An M&A lacking a well-considered approach to uniting them in a single integrated IT infrastructure is headed for trouble. Poor synchronization can result in slow, convoluted business processes; disjointed connections between applications make duplication and errors inevitable.

For M&A success, companies turn to fast, modern API integration solutions

In the midst of an M&A, companies may attempt to integrate IT environments through custom coding. That is, they employ developers to build point-to-point connections between the various applications, databases, services, and systems that each business brought to the merger.

However, organizations soon find the approach highly impractical for the scope and complexity of a merger between two entities. In addition to being time-consuming and resource-intensive to write, custom code is difficult to manage on a large scale and prone to breaking.

To drive greater M&A success, companies are increasingly turning to fast, modern API integration solutions. With integration platform as a service (iPaaS) offerings allowing them to connect IT components quickly and easily—with scalability for the future—businesses can move smoothly through M&A transitions, relying on systems to work well together from day one.

Mergers and acquisitions news from Jitterbit: Integrating eBridge capabilities to expand our reach

At Jitterbit, we know just how important the right solution is for a successful M&A integration. As we continue to grow and thrive, we rely on our own technology to integrate seamlessly with other business entities.

A case in point? In our recent acquisition of eBridge Connections, a leader in cloud-based accounting, CRM, EDI, E-Commerce, and ERP integration, we used Jitterbit technology to quickly and efficiently connect applications, data, and systems, creating a single unified infrastructure.

And by bringing eBridge capabilities on board, we’ve successfully expanded our reach—we’re now equipped to support a wider range of EDI transactions, giving our retail customers more avenues for growing their businesses.

To speak to an expert about your company’s M&A integration strategy, contact us now.

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