Synergy

• What concept is closely associated with takeovers and merges?

  Synergy
• How is synergy used in business?

  To justify joint ventures and strategic alliances
• What does synergy mean in broad terms?

  The whole is greater than the sum of parts
• How can synergy be expressed mathematically?

  $1 +$$1 =$$3$
• What was the price SSB paid for Argos?

  1.4 billion pounds
• What type of synergies did SSB expect from the Argos takeover?

  Cost savings and revenue synergies
• How much cost savings did SSB announce from the Argos merger?

  Half a billion pounds
• What revenue synergies did SSB expect from the Argos takeover?

  160 million pounds
• What recent acquisition did Lloyds Banking Group make?

  Buying NBNA credit card business
• How much did Lloyds Banking Group pay for NBNA?

  Just under 2 billion pounds
• What revenue increase does Lloyds expect from the NBNA acquisition?

  650 million pounds
• What cost savings does Lloyds expect from the NBNA acquisition?

  1 million pounds per year
• What are the two potential sources of synergy in business transactions?

  • Cost synergies
  • Revenue synergies