Merger
A combination in which a new legal entity replaces the previous ones and their shares are exchanged for its securities.
How to read the number
Holders on each side receive a stake in the combined company at the exchange ratio; that ratio, not the pre-deal quote, decides who owns what afterwards.
When the metric lies
Synergies are estimated when the deal is agreed and tested by the accounts years later. Integration costs more than planned more often than less.
Also known as: merger