An Assessment of Cap Gemini’s Cross‐Border Merger With Ernst & Young Consulting Available to Purchase

Cross‐border mergers are rising in number and scope even though, on average, firms do not profi t from them. In this article, we use interviews and secondary data to assess a historic merger between two global consulting giants ‐ Cap Gemini and Ernst & Young Consulting. The two fi rms had well‐articulated strategic reasons for merging. Nevertheless, their integration strategy failed to address key differences in business models, core competencies, and organizational practices. As a result, the combined firm suffered five years of diminished financial and competitive performance. Our study highlights the organizational complexities affecting mergers between human capital‐intensive firms.