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                                                                                         The strategy of acquisitionsName:Institution: Date:                           Many firms have used the acquisition strategy to gain traction in their industry and thus generate leverage. Thus every year, it is not hard to pinpoint brands or organizations which are in the talks for acquiring a stake in another company given that the process can be complex as it engages multiple parties. One of the acquisitions currently underway in is the news by Intel to acquire Moovit which is an Israeli startup for $ 1 billion. Intel deals in technology and is considered the leading company in semiconductor chips. It is a largely successful company with over 100,000 employees. Moovit is a startup company responsible for designing the Moovit app. After the acquisition, it is will be a subsidiary to Intel. It also deals with mobility data.     Intel largely deals in semiconductor chips and has decided to venture into autonomous vehicles. Thus, acquiring of Moovit will help establish it as mobility provided in addition to offering autonomous services. The goal is for Intel to be part of the autonomous vehicles bandwagon in the next decade. Thus, this acquisition comes at the right time. Also, Intel has experience with partnerships such as with Microsoft Corporation thus, it can be able to seamlessly integrate Moovit structures into its own. Overall, the acquisition benefits both parties because Intel brings its semiconductor fabrication abilities while Moovit provides mobility data.     Secondly, Moovit Inc. is a rapidly growing company with an attractive revenue base. According to Solomon (2020), Moovit is used by 800 million users in 3100 cities and 102 countries for real-time information on public transport schedules. This implies that the company already has stable systems and structures including an existing supply chain. This helps to eliminate high costs for Intel because it is not a struggling start-up but one already on the move.     Thirdly, having Moovit Inc. on its side will help Intel gain leverage in a very competitive industry. This is telling with the very steep acquisition value. It implies that Intel performed due diligence before making the move and proves that Moovit can do the job.  Also, the company’s previous acquisition of Mobileye was a good move since it raised revenues from $210 million in 2017 to $ 879 million in 2019 ( Liedtke, 2020). This is likely to bring the attention of potential investors in Intel further elevating its value proposition. It could also enable Intel leverage over the buying power of suppliers because Moovit Inc. already has an established supply chain as it does. Therefore it will be able to negotiate favorable terms to acquire raw materials allowing it to advance in its operations much faster. It will also enhance customer satisfaction, to its current customer base. Launching autonomous vehicles is likely to pay off in long term loyalty because it is showing initiative in solving modern problems. Overall, the acquisition has great promise in terms of growth and profits, and thus it is dependent on collaboration.     Acquisitions carry with them significant risks to the acquiring firm, especially in a largely globalized economy. One of the key problems is the lack of integration of cultures between the two firms. Each party comes in with established structures and corporate cultures which impact employees and management. If not handled holistically and strategically this can make an acquisition a poor business move. It requires setting down systems that serve all parties involved in promoting a common vision and growth plan. This is especially if a firm acquires a firm in another country or continent where the way of doing business is different. One way to resolve this issue is to establish a strong communication plan. This involves integrating tools, plans, and training to communicate on changes that will occur as well as addressing any concerns raised by employees and leaders. If this is done beforehand, it will allow the acquisition to occur smoothly from the initial stage.ReferencesLiedtke, M.(2020). Intel buys the Moovit app for $900M to boost bet on robotic cars.Retrieved from https://www.washingtonpost.com/national/intel-buys-moovit-app-for-900m-to-boost-bet-on-robotic-cars/2020/05/04/9edbb464-8e4c-11ea-9322-a29e75effc93_story.htmlSolomon, S.(2020). Intel buys Israeli smart-transit startup Moovit for $ 900 million in a bid for data. Retrieved from https://www.timesofisrael.com/intel-buys-isreali-smart-transit-startup-moovit-for-900-million-in-bid-for-data/