Mergers and acquisitions (M&As) are commonplace in most industries to unlock company growth, market expansion, and fresh new opportunities, but behind the optimism of leadership, challenges await, especially when it comes to stitching together differing company cultures, departments, systems and technologies.
Way beyond the acquisition cost and financial due diligence, the true cost of M&As often lies in the hidden friction and inefficiencies caused by poor technology integration. Poorly handled, integration can create cultural clashes, disrupt workflows, and undermine the efficiencies that the deal was intended to achieve.
Unsurprisingly, despite the billions spent each year pursuing M&A deals, only about 70% of them are successful.
Cultural clashes are often to blame for these failings. Overestimated synergies, leading to unrealistic expectations and disappointment; poor integration planning that causes operational disruptions; a loss of key talent; and customer disruption as changes in service or product offerings post-merger can distance existing customers.
The obstacle
One of the most persistent and complicated hurdles in any M&A is technology integration. The difficulty stems from trying to unite disparate IT systems, often built on incompatible platforms, weighed down by legacy infrastructure, and guided by conflicting standards from each company.
As companies come together, they must also consolidate websites, customer data, backend systems, and user interfaces. The result? A jumble of platforms, conflicting technologies, and inconsistent digital experiences. This phenomenon, called tech friction, can undermine customer trust, frustrate employees, and hinder innovation.
The ripple effects of mismatched tech are far-reaching, affecting everything from customer service and internal communications to finance, HR, and supply chain management, which strains company resources.
It’s also disruptive, slowing down the process, reducing productivity, staff engagement, and customer satisfaction.
The difficulty is compounded by the reality that most organisations typically operate on platforms built at different times, for varying purposes, and maintained under varying governance standards. Often, one company may rely heavily on deeply embedded legacy systems while another has embraced cloud-native technologies. Forcing together these contrasting systems creates a mismatch which can affect everything from cybersecurity and compliance issues to disrupted workflows and user experiences.
These issues don’t just occur in big companies: even small companies undergoing mergers face the same barriers, except with fewer resources to solve with the problem.
Mismatched data can result in duplication and errors, while employees struggle to navigate disjointed tools. Critically, the friction introduced by IT infrastructures can undermine the gains that justified the merger in the first place.
A real use case
One such challenge occurred in Boston Consulting Group, showing that today’s deals carry even greater risk due to the complexity of digital systems.
From 2004 to 2013, Banco Sabadell acquired and integrated seven banks, includingLloyds Banking Group’s Spanish business, into its operations. But after acquiring TSB from Lloyds in 2015, its £450 million IT migration project caused serious technical issues, locking customers out of their accounts while others saw details belonging to different users. The project, expected to save £160 million a year, ultimately led to the resignation of TSB’s chief executive, Paul Pester.
BCG’s Sukand Ramachandran suggests that acquirers often focus on customer bases and revenue projections while neglecting the robustness of the target’s technology stack. In contrast, Unilever’s Alberto Culver acquisition succeeded because it used data modelling to assess targets before proceeding. You must involve your IT team from the start of any deal to evaluate architecture and integration challenges. Scenario planning and beta testing, which are standard in the tech world, can help companies avoid the operational chaos that comes with failed integrations.
Why traditional integration is not enough
In many M&As, tech integration is treated as an afterthought – something to solve once the deal is resolved. This leads to rushed, expensive fixes and disconnected systems. Legacy incompatibilities are missed, and fragmented data handling causes duplication and errors.
Vitally, this overlooks the impact on employees and customers, resulting in poor user experiences and disengagement.
If an organisation does not use strategic planning for scalable integration, it can reduce their future growth. Successful integration requires more than technical alignment; it needs a people-centred, forward-thinking approach that aligns systems, supports data integrity, and maintains agility while delivering seamless digital experiences that support long-term business successes.
Designed with flexibility
Companies need agile, interoperable technology solutions that offer tools to maintain focus on growth and strategy, instead of being bogged down by the complexity of system integration.
To merge systems, many companies are turning to solutions like digital experience platforms (DXPs), simultaneously enhancing usability, efficiency and profitability.
Going further with DXPs
Although DXPs are commonly perceived as marketing-focused platforms designed primarily for customer acquisition, the more robust and well-built solutions offer capabilities far beyond this scope. They integrate and surface various technologies in a modular fashion, serving as a central orchestration layer. This allows organisations to smoothly connect legacy systems, modern cloud-based tools, and diverse digital touchpoints, significantly streamlining integration during complex mergers and acquisitions.
Beyond a content management system, DXPs can act as a central hub that unites backend systems, manages digital content, personalises interactions, and supports collaboration across departments – from customer-facing portals to employee intranets — without the need for a full overhaul of current technology.
DXPs are a powerful, scalable solution for bridging the gaps left by mismatched tech. They reduce friction, protect productivity, and ensure that both customers and employees feel the benefits of the merger, not the challenges.
How a DXP works
- Consolidates platforms
It integrates different systems (like customer databases, content management systems, and e-commerce platforms). - Creates seamless user journeys
Whether someone is visiting a website, logging into a customer portal, or using a mobile app, a DXP ensures a consistent experience. - Improves personalisation
A DXP can use customer data to tailor content and recommendations. - Simplifies content management
Instead of using different tools for different platforms, teams can manage all digital content (text, images, videos, etc.) from one central dashboard. - Supports scalability
M&A integration isn’t a one-time project. As businesses grow, DXPs make it easier to add new channels, brands, languages, or regions without starting from scratch.
In M&As, a DXP is the glue that helps to bring together digital systems and touchpoints. It ensures customers and employees get a consistent, high-quality experience, even if you’re still merging your backend systems.
It’s like putting in a smooth, modern front door while you quietly finish off the home renovations and tidy up the mess behind it.
Mike MacAuley is the General Manager at Liferay, the leading open source portal for the enterprise, offering content management, collaboration, and social out-of-the-box.
- Digital Strategy
- People & Culture