Acquihire, a term used in the business world to describe a situation where a company is acquired primarily for its skilled employees, has an interesting spelling. The first syllable, "acqui," is pronounced /əˈkwaɪ/ (uh-kwai) and comes from the word "acquire." The second syllable, "hire," is pronounced /haɪər/ (high-er) and means to employ. Therefore, the phonetic transcription of "acquihire" is /əˈkwaɪ.haɪər/ (uh-kwai-high-er). Although it may seem like an unusual spelling, it accurately reflects the origin and meaning of the word.
Acquihire refers to a business arrangement or strategy in which a company is acquired primarily for the purpose of hiring its employees rather than for its assets, products, or services. The term is a combination of "acquisition" and "hire". An acquihire occurs when a larger, usually more established company acquires a smaller startup or company mostly to gain access to its talented workforce, often specialists in the technology industry.
In an acquihire, the acquiring company may not have a keen interest in the acquired company's products, services, or intellectual property. Instead, the goal is to identify and recruit the skilled employees of the acquired company, usually to enhance or strengthen the acquiring company’s existing team or to supplement in-house expertise.
Acquihires are often favored in situations when companies are looking to quickly expand their talent pool, gain expertise in niche areas, or enter into new markets. Acquiring companies benefit by gaining access to a pool of talented individuals who have already demonstrated their skills, entrepreneurship, and potential through their work in the acquired company. Acquihires can also be advantageous for the acquired employees, as it allows them to join a larger organization with more resources, stability, and potential for career growth.
The term "acquihire" gained prominence in the startup and technology landscapes, where recruiting and retaining highly skilled individuals can be challenging. However, acquihires can occur in other industries as well.
The term "acquihire" is a combination of two words: "acquisition" and "hire". "Acquisition" refers to the action of acquiring or purchasing something, typically a company or its assets, while "hire" pertains to employing someone for a job or position. The word "acquihire" specifically refers to a situation where a company acquires another primarily for the purpose of gaining and retaining its skilled employees. So the etymology of "acquihire" is a blend of these two words to create a new term specific to this type of corporate acquisition strategy.