Integrating Avocent Corporation into Emerson Network Power

This case reviews Emerson Electric’s proposed acquisition of Avocent Corporation in 2009. The focus of this case is how a technology company such as Avocent, with a dramatically different business model compared to its acquirer, should be integrated into a large, multi-industry conglomerate like Emerson. Underlying this managerial question is a broader strategy question—under what conditions should the acquiring firm A modify its own business model and/or fold itself into its acquisition B, rather than trying to integrate B into the old business model? The case also touches upon themes related to the management of human capital during the acquisition of a technology startup.