An Assessment of Cap Gemini’s Cross‐Border Merger With Ernst & Young Consulting

Abstract

Cross‐border mergers are rising in number and scope even though, on average, firms do not profi t from them. In this article, we use interviews and secondary data to assess a historic merger between two global consulting giants ‐ Cap Gemini and Ernst & Young Consulting. The two fi rms had well‐articulated strategic reasons for merging. Nevertheless, their integration strategy failed to address key differences in business models, core competencies, and organizational practices. As a result, the combined firm suffered five years of diminished financial and competitive performance. Our study highlights the organizational complexities affecting mergers between human capital‐intensive firms.

Citation

Malhotra, A. and Pierroutsakos, A. (2005), "An Assessment of Cap Gemini’s Cross‐Border Merger With Ernst & Young Consulting", Multinational Business Review, Vol. 13 No. 2, pp. 107-130. https://doi.org/10.1108/1525383X200500011