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Synergy means that the combination of something, usually in business it is two companies in a merger or acquisition, is greater than the sum of their parts. Synergy happens when two companies that merge are so compatible that the sum of the whole is greater than the value of the individual parts or the 2 + 2 = 5 effect.


XYZ, Inc. is going to acquire ABC, Inc. because ABC, Inc. has access to a market that XYZ, Inc. needs for its distribution channels. This merger is expected to have synergy or be synergistic.

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