Friday, March 16, 2007

What is a 1+1=3 Acquisition?

We classify a book publishing software vendor's merger or acquisition as a 1+1=3 if it has a dramatic effect on the sales of the vendor's publishing software.

Example: 1+1=2 Acquisition

The Media Services Group Ltd's 2005 acquisition of S3 Pubtech; and its CisPub book publishing software product line, complemented their existing Bookworks product line, increased their customer base among book publishers & distributors, and improved technical support for existing customers; however, it has not lead to increased rates of sale for either book publishing software solution - CisPub or Bookworks.

Example: 1+1=3 Acquisition

International Business Services' (a $300M+ company) 2005 acquisition of TMS ($10M+ company) and their Bookmaster book publishing software dramatically increased the sales potential of Bookmaster. The number of new clients signed up in the United States has greatly increased since the merger and Bookmaster is now supported and sold by IBS offices in 22+ countries. The software is being extended to support the Spanish language, and support for additional languages is forthcoming. This merger has the potential to quadruple the sales of Bookmaster.

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