MERGER BETWEEN AUDI & DUCATI

Presented By:Ashwini Praveen

Introduction to AUDI• German Based Company

• Founded by August Horch in 1885

• Subsidy Of Volkswagen since 1966

• Revenue 2011: Exceeds $500 Million worldwide

Introduction to DUCATI• In 1926, three brothers, Adriano, Marcello and

Bruno Ducati founded Ducati

• Italy Based Company

• Revenue 2011 : $ 209.1 Million

Market Share DataMarket share Data of 2011

Market Share Data

The Merger/Acquisition Summary

• Style: Friendly• Rename: No . Same Brand Names continued• Purpose: Increase Sales• Strategic Mode: Development

• The Deal: Audi Purchased Ducati $1.12 Billion

• Market Share of Audi: 9%.

• Combined market share: 10% (Approx).

Audi & Ducati– Key Features

• 2012 , Audi acquired Ducati To increase market share & Sales.

• Technology is Unique in both companies.

• Investment-$1.12 Billion , Ducati had liabilities of just $200 thousand.

Features Continued

• Audi Has greater sales to BMW & Mercedes

• Both Have Sports version – customized for customers needs

• Audi is famous brand in Luxury compartment & Ducati is famous for its sports bike

Audi & Ducati - Merger Advantage

• The Brand image of both the companies is boosted.

• Increase in Sales.

• Increase in market share.

• Can offer more Customized Service to customers from “Volkswagen”

Audi and Ducati - Synergies

• Operational Synergies

• Technology Synergy

• Investment synergy

Are these Automobiles Mergers working?

Subjectivity: The customers can’t resist such a customised service offer & brand names.

Objectivity: Increase Sales

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