definition

An acqui-hire is a type of business acquisition where the main goal is not to buy a company’s products, services, or market share, but rather to secure its talent.

In simple terms, it’s when a company acquires another primarily to bring its employees and founders onto its own team.

The concept became popular in the tech industry during the 2010s, as large companies like Facebook, Google, and Yahoo sought to quickly expand their teams with skilled workers in areas like mobile development, artificial intelligence, and product design.

Instead of competing for talent through traditional hiring, an acqui-hire allows a company to acquire an entire group that already works well together. This approach can save time, reduce recruiting costs, and accelerate innovation.

Compared to a full buyout, an acqui-hire is often less expensive and more targeted. The acquiring company may shut down the acquired firm’s existing products or services, keeping only the team.

This makes sense when the acquired company’s business model is struggling, but the talent is still highly valuable.

For instance, productivity startup Campsite was acqui-hired by Notion to strengthen its engineering and product capabilities.

Acqui-hires provide a soft landing for founders and employees when a venture doesn’t achieve scale, while still creating value for the acquirer. 

For investors and entrepreneurs, understanding the role of acqui-hires highlights how talent can sometimes be the most valuable asset in business.