M&A Communications

Dynamics Research Corporation (DRC), a mid-sized technology management services provider, acquired Kadix Systems in August 2008 to bolster its high-end management consulting capabilities and broaden its presence in homeland security and other high-growth federal markets. To make the acquisition a success, DRC needed to communicate exactly why acquiring Kadex was important—not just to customers, partners, investors and the media, but also to Kadix employees.

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Situation:

Dynamics Research Corporation (DRC), a mid-sized technology management services provider, acquired Kadix Systems in August 2008 to bolster its high-end management consulting capabilities and broaden its presence in homeland security and other high-growth federal markets. To make the acquisition a success, DRC needed to communicate exactly why acquiring Kadex was important—not just to customers, partners, investors and the media, but also to Kadix employees.

Objective:

Ensure effective communications to DRC’s key stakeholders about the acquisition of Kadix Systems, while operating under the high-pressure conditions akin to most M&A deals.

Our Process:

Sage Communications worked closely with DRC and Kadix to develop a comprehensive M&A communications program that included strategy, planning and execution. Since the integration of Kadix and DRC would be taking place over a long period of time, the plan focused on ensuring that both companies would deliver consistent and effective messages both internally and externally before and after closing the deal.

Employee communications were a priority area during the integration effort. Since employees of both companies were always interacting with government customers onsite, it was important that they viewed the acquisition as a positive development, so they could pass that impression on. In addition, DRC wanted to ensure the loyalty of Kadix employees and motivate them to stay focused on their jobs, in order to preserve the “human capital” that was at the core of the strategic acquisition from the start. As a result, messages to Kadix employees focused on what it meant to be a future DRC employee—what the company was, why it was a great place to work, and what future opportunities for advancement there might be.

All internal messaging was conveyed through a wide range of native communications vehicles, including letters from senior management, all-hands meetings, FAQs, and regular updates about the integration in employee newsletters. The company also set up a DRC/Kadix Integration Team e-mail address, where employees could submit questions and concerns.

Sage’s external communications plans for DRC capitalized on the initial and closing announcements. The agency developed customized messages and Q&As for customers, partners, investors and the media, and conducted extensive media outreach to business, financial, regional and government press.

Results:

DRC and Kadix Systems agreed that the communications program was incredibly successful, both internally and externally. News of the acquisition was well-received by employees, partners, investors, customers and the media, and more than 70 media hits were generated in business, financial, regional and government press. Feature stories appeared in Tier 1 publications such as Government Executive, Washington Business Journal, Boston Globe, Boston Business Journal and HS Today. Most notably, Washington Technology called DRC a “company to watch” in 2009 because of its acquisition of Kadix Systems.