Mergers and acquisitions (M&A) are often positioned as strategic opportunities for rapid growth, competitive advantage, or market expansion.
However, the success of these deals doesn’t rest solely on financial negotiations or cultural alignment—it also hinges on the integration of technology. Poorly managed IT considerations during M&A can derail synergies, create costly inefficiencies, and expose organisations to cyber security risks.
Conversely, a well-planned IT strategy can accelerate value realisation and set the foundation for long-term success.
This article explores the key IT considerations businesses must evaluate before, during, and after a merger or acquisition.
Technology Due Diligence
Due diligence goes beyond financial audits. A full assessment of the target organisation’s IT estate is essential to identify risks, redundancies, and opportunities for consolidation. Areas to examine include:
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Infrastructure assessment – Servers, data centres, cloud platforms, and network architecture must be reviewed for compatibility and scalability.
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Application landscape – Understanding core business applications, licences, and bespoke systems prevents surprises that can disrupt business continuity.
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Technical debt – Legacy systems, unsupported software, and outdated hardware can introduce significant costs post-acquisition.
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Vendor contracts – Reviewing supplier agreements and licensing arrangements ensures continuity and avoids unexpected fees or penalties.
Undertaking thorough technology due diligence provides clarity on the true cost of integration and highlights areas where investment may be required.
System Integration and Rationalisation
Once the deal is complete, the challenge becomes merging IT environments into a single, efficient ecosystem. Redundant systems often emerge, particularly in areas like CRM, ERP, and collaboration platforms. The decision must be made whether to:
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Consolidate into one system (often the acquirer’s platform).
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Run dual systems for a transition period.
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Invest in a new platform that best serves the combined entity.
Integration planning must strike a balance between operational continuity and long-term efficiency. Failure to rationalise systems can result in fragmented data, inefficient processes, and higher operating costs.
Data Migration and Quality
Data is one of the most valuable assets within any organisation, but it is also one of the most complex to merge.
Key considerations include data mapping and standardisation across CRM, ERP, and HR systems, alongside a comprehensive programme of data cleansing to remove duplicates and correct inaccuracies. Equally important is the development of a secure migration strategy to protect sensitive personal or financial information.
The aim is to achieve a single source of truth for the new entity. Without effective data integration, decision-making becomes inconsistent and operational visibility suffers.
Cyber Security Risks
M&A activity is a prime opportunity for cyber criminals. During periods of transition, security controls are often relaxed, monitoring reduced, or systems misaligned—creating exploitable vulnerabilities. A robust cyber security strategy must therefore address:
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Security posture assessment – Identifying vulnerabilities across both organisations.
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Identity and access management – Ensuring only authorised users retain access, especially during employee exits.
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Compliance requirements – Verifying alignment with GDPR, PCI DSS, and other relevant regulations.
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Incident response plans – Establishing a unified process for detecting and addressing breaches.
Neglecting cyber security during M&A can lead to costly data breaches and reputational damage, undermining the value of the deal.
Regulatory and Compliance Alignment
Merging organisations inevitably brings together different compliance obligations, whether dictated by industry, geography, or size. A deal that spans multiple regions, for example, might require strict adherence to GDPR alongside other international data protection frameworks.
In sectors such as financial services or manufacturing, additional regulatory layers must also be observed.
The merged entity needs to operate to the highest applicable standards, ensuring that systems, processes, and data handling are fully auditable and transparent. Overlooking this alignment can result in fines, reputational harm, and even barriers to entering or maintaining market positions.
Building compliance into IT integration from the outset is therefore vital to avoiding disruption later.
Cloud Strategies and Infrastructure
Cloud adoption has transformed IT strategy, but M&A raises complex questions. The target organisation may use a different cloud vendor (e.g. AWS vs Azure), or may operate entirely on-premises. Rationalising infrastructure requires:
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Cloud vendor evaluation – Assessing cost, performance, and compliance across providers.
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Migration roadmap – Establishing a phased approach to move workloads where necessary.
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Hybrid environment management – Maintaining operational efficiency while systems run across multiple platforms during transition.
A coherent infrastructure strategy ensures that the merged organisation benefits from scalability and cost efficiency without compromising security or performance.
Employee Experience and Change Management
Technology transitions are not simply about systems—they are about people. Employees from both organisations need to adapt to new platforms, processes, and communication methods, all while adjusting to the wider cultural change of the merger. Without the right support, this can quickly impact morale and productivity.
Clear communication is crucial: staff must understand what changes are coming, why they are happening, and when they will take place. Training and accessible support materials should be provided to smooth the adoption of new tools. Above all, the systems chosen must deliver a positive user experience.
If merged platforms feel clunky or unnecessarily complicated, the workforce will resist them, undoing the efficiencies sought from integration. By prioritising the employee experience, businesses can accelerate adoption and maintain momentum during a period of upheaval.
Costs and Investment Planning
IT integration represents one of the largest hidden costs of M&A. Budgeting must therefore extend beyond licences and infrastructure to include professional services, consultancy, cyber security audits, and the expenses of running parallel systems during the transition. Accurate financial planning ensures there are no surprises post-acquisition and that IT contributes positively to the deal’s return on investment.
Strategic IT Roadmap
While immediate priorities focus on integration, IT should also be viewed as a springboard for future growth.
A merger offers the opportunity to reassess how technology underpins the organisation’s strategy, from driving operational efficiency to enabling digital transformation.
Leaders should consider how investments in analytics, automation, and artificial intelligence might unlock new opportunities or enhance customer experiences. By setting out a forward-looking IT roadmap, the merged business can go beyond simply consolidating systems—it can position technology as a driver of innovation and competitive advantage.
Those organisations that think strategically about IT at this stage are far more likely to capture the long-term value their deal was designed to achieve.
Final Thoughts
Technology has become inseparable from business strategy, and M&A is no exception. By addressing IT considerations early and methodically, organisations can reduce risk, avoid costly missteps, and unlock the full value of their transaction. IT integration is not simply a support function; it is a critical driver of deal success.
For organisations embarking on M&A, the question is not whether to prioritise IT, but how early to bring IT leaders into the conversation. Those that do will find themselves better positioned to achieve seamless integration, realise synergies, and secure long-term growth.
