Diversification strategies in information and communication industry through acquisitions: the case of Vodafone-Cobra.

In recent decades, the Italian mid-sized firms have played a fundamental role in the Italian economy. Therefore, in recent years, those emerging treasures of Made in Italy have become attractive for large foreign multinationals. A widely debated topic in literature concerns the effects that this phenomenon has on stakeholders. The question is whether cross-border acquisitions have positive effects on the target company or not. This paper aims at understanding the effects on governance, management and strategy of the acquisition of an Italian mid-sized enterprise by a foreign multinational. It will be examined the case of Cobra Automotive Technologies, a mid-sized firm operating in the field of technologies applied to automotive industry. Its valuable competencies made the firm attractive for Vodafone, who acquired Cobra Automotive Technologies in 2014. The methodology used to analyse the case is in-depth interviews to managers who closely followed the entire acquisition process. In the early months after the acquisition, it produced positive effects for Cobra. After the takeover, Cobra immediately gained huge financial resources, a global market reach and a radical change of positioning on international markets. Yet, Vodafone did a decisive stimulus to the R&D unit that is going to double its dimension within a year.