11 recent mergers between NGOs in the aid sector
14
NGO Mergers and acquisitions A growing trend? 11 recent mergers between NGOs in the aid sector
description
NGO mergers and acquisitions are few compared to those in the for-profit sector. But they are becoming more frequent as donor funding dwindles and the desire to go local and widen impact increases. Here are 11 recent mergers and acquisitions between NGOs...
Transcript of 11 recent mergers between NGOs in the aid sector
NGO Mergers and acquisitionsA growing trend?
11 recent mergers between NGOs in the aid sector
Mergers and acquisi-ons between NGOs in
the aid sector are not new. In fact, one of the biggest and oldest aid groups, Interna-onal Rescue Commi?ee, was born in 1942 out of a merger between the Interna-onal Relief Assoc ia-on and Emergency Rescue Commi?ee. NGO mergers and acquisi-ons, though, are few compared to those in the for-‐profit sector. But they are becoming more frequent as donor funding dwindles and the desire to go local and widen impact increases. Here are 11 recent mergers and acquisi-ons between NGOs...
Mercy Corps and NetAidMerged 2007
This wasn’t the first merger entered into by Mercy Corps. In 2004, it joined up with the Conflict Management Group to build its peace-‐building and crisis preven-on exper-se. With NetAid, Mercy Corps hopes to broaden engagement of the youth and “inspire them to take ac-on for a be?er world.” Before the merger, NetAid struggled to develop a consistent revenue stream beyond the receipts from the simultaneous televised rock concerts in 1999 that launched it, and its large staff and pricey New York headquarters were draining its finances.
Self Help Development Interna>onal and Harvest HelpNow known as Self-‐Help AfricaMerged 2008
It was a rare case of cross-‐border deal in the nonprofit world (Self Help Development Interna-onal was based in Ireland and Harvest Help was headquartered in the United Kingdom) and was meant to “re-‐engineer our business,” noted Self Help Africa CEO Ray Jordan in an interview with the Financial Times. The merged en-ty wanted to move away from direct implementa-on to research and advocacy. Jordan noted that the merger decreased management and administra-on costs while increasing capacity to do more for Africa. In the process, 270 people were let go, bringing the size of staff to 105.
Task Force for Child Survival and Interna>onal Trachoma Ini>a>veMerged 2009
The two NGOs said the decision to merge was a way to leverage their resources and scale up efforts to eliminate trachoma, the world’s leading cause of preventable blindness. ITI is now a program under The Task Force for Global Health, the new name of Task Force for Child Survival.
Ac>onAid and Mellemfolkeligt SamvirkeNow known as Ac>onAid DenmarkMerged 2010
Call it an “arranged marriage” not a takeover by Ac-onAid of MS, said former MS Uganda chief Mads Benedictus Jorgensen, as the merger serves the interest of the two organiza-ons: Both wanted a stronger voice and presence in the South. MS said the merger would reduce its transac-onal costs, providing more resources to its democracy and an--‐poverty work.
Helvetas and Swiss Founda>on for Development and Interna>onal Coopera>onNow known as Helvetas Swiss Intercoopera>onMerged 2011
The merger sought to strengthen the voice of the two organiza-ons in the Swiss and European development stages, boost their poten-al to secure new projects and funding and increase their efficiency and impact, former Intercoopera-on CEO Felix von Sury told Devex. Intercoopera-on, he said, was keen to pursue the merger because it “had lost its somewhat privileged rela-onship” with the Swiss Agency for Development and Coopera-on, leaving it with two op-ons — either to start raising funds from the public, which he said was expensive and risky, or become a consultancy-‐type of an en-ty, which would not sit well with its NGO-‐minded staff.
Première Urgence and Aide Médicale Interna>onaleNow known as Première Urgence-‐Aide Médicale Interna>onaleMerged 2011
The idea of a merger came from AMI, which had been “experiencing difficul-es,” Thierry Mauricet, head of Première Urgence-‐Aide Médicale Interna-onale, said in an interview for Gro-us Interna-onal. He called the merger “an alliance of trades and skills.” Before their union, the two humanitarian NGOs collaborated on several occasions such as in the Hai- earthquake and Pakistan flood response.
FHI and AEDNow known as FHI 360Purchase agreement signed 2011
In March 2011, AED announced plans to sell its assets and transfer programs to another organiza-on, following a decision by the U.S. Agency for Interna-onal Development to temporarily suspend new funding to the nonprofit due to irregulari-es uncovered in its work in Pakistan and Afghanistan. Three months later, it named Family Health Interna-onal as its sole buyer. Then AED President and CEO Gregory R. Nible? told Devex that AED opted for acquisi-on to “ensure the smooth transfer of our programs and projects and our staff into a new home, so to speak.”
CDC Development Solu>ons and U.S. Center for Ci>zen DiplomacyMerged 2012
Not even five years in its existence, USCCD became financially unviable, as it relied on a sole donor for its resources. Today, it is a division of CDC Development Solu-ons, and as per the announcement of the merger, USCCD will keep its exis-ng programs, website, name, staff and offices in Des Moines, Iowa. Founder Ann Olsen Schodde said the merger “strengthens the USCCD’s posi-on for the future – making it more sustainable; its resources more robust; its network more broad.” For CDC Development Solu-ons’ part, the partnership with USCCD will allow it to replicate its global corporate volunteer program in the United States.
Plan Interna>onal USA and CEDPAPurchase agreement signed in 2012
The transac-on involved transferring CEDPA’s assets, including eight USAID subwards, founda-on-‐funded grants and programs implemented by its Nigeria office, to Plan. It doesn’t cover CEDPA India Society, which will remain independent. In an interview with Devex on the heels of the acquisi-on, Plan Interna-onal USA CEO Tessie San Mar-n said: “Olen-mes because we’re so focused on doing good and fulfilling our mission, we don’t think enough of our long-‐term view when it comes to making investments in ourselves. We need to start looking at acquisi-ons as strategic tools much more seriously than we have.”
Fundación Luis Vives and Acción contra el HambreMerged 2012
The merger, said Ac-on Against Hunger-‐Spain in its 2012 annual report, enabled the iNGO to start working inside Spain, which reels from a lingering economic crisis. Ini-al projects promoted social and professional inclusion of those most affected by the crisis, through entrepreneurial ac-vi-es. Fundacion, prior to the union, worked to empower Spanish civil society groups.
In announcing the merger, Merlin said the move was meant to “secure a sustainable future for [its] lifesaving work.” Save the Children, its spokesperson told Devex, believes the partnership will help it achieve its 2010-‐2015 strategy. The transi-on is expected to last within 18 months from July 2013 and would culminate in the phased transfer of Merlin’s program opera-ons and head office teams to Save the Children Interna-onal. Save the Children works in all of Merlin’s 16 countries of opera-ons save for Chad and the Central African Republic.
Save the Children and MerlinMerged 2013
Are NGO Mergers and acquisitions a growing trend?
Read more:
A game changer for Save the Children?
Merlin: Anatomy of a doomed iNGO business model
How Merlin merger can help Save the Children local partners
Are iNGO mergers the wave of the future?
