Mergers and acquisitions promise growth, scale and new market opportunities—but too often, they fall short of expectations. Research shows that 70–75% of M&A deals underperform or fail and ineffective post-merger integration is one of the leading reasons. Beyond cultural and operational misalignment, IT complexity, fragmented systems and delayed infrastructure alignment are some of the biggest obstacles to realizing deal synergies.

For private equity investors, these challenges go beyond operational inefficiency—directly impacting returns and portfolio value creation. Deals that looked compelling on paper often lose momentum because integration roadmaps are unclear, ERP and cloud systems remain fragmented, or cybersecurity risks derail progress.

The reality is stark: only 14% of companies achieve complete integration success across strategic, operational and financial goals. Cyber incidents are two to four times more likely in post-merger periods and 57% of organizations struggle with IT infrastructure alignment. For funds that depend on speed and certainty to deliver outcomes, these risks are not just costly but existential.

The core challenges of post-M&A IT integration

IT complexity and fragmentation: Up to 60% of synergy initiatives are IT-related, but delays, data quality issues and gaps in integration prevent businesses from realizing those synergies. ERP integration alone is a pain point for nearly two-thirds of organizations.

Critical infrastructure misalignment: Data center and cloud consolidation are among the most significant hurdles in post-merger scenarios. Misaligned infrastructure delays synergy realization and introduces redundant costs and operational inefficiencies.

Cybersecurity and compliance risks: Fragmented systems amplify vulnerabilities. Without harmonized cybersecurity and compliance measures, the deal value is at risk, exposing organizations during a critical transition window.

These challenges are why post-merger IT integration has become the new battleground for value creation in private equity-backed deals.

A pragmatic approach to unlocking synergies

At HCLTech, we believe post-M&A integration must be approached with precision, speed and scalability. Our framework addresses complexity head-on, modernizes IT estates and ensures that integration is not just about cost takeout but about enabling resilience and long-term growth.

• Clarity through early assessment and planning: Using MergeIT, we evaluate IT landscapes upfront and create synergy-driven roadmaps aligned to deal objectives. This allows Private Equity investors to gain visibility into risks, opportunities and integration priorities, ensuring decisions are made with confidence and speed.
• Execution with modernization and automation: We simplify ERP and cloud integration through accelerators like Bridges4HANA and Migrate+, while consolidating legacy systems into AI-enabled cloud environments. Tools such as Prizm® and DRYiCE automation provide real-time integration, tracking and optimization, giving investors measurable efficiency and scalability benefits.
• Resilience, compliance and governance at scale: Cybersecurity, regulatory compliance and disaster recovery are embedded throughout the integration journey. Post-merger, we stabilize performance, centralize data and scale operations via managed services, while ensuring cross-geography governance to capture synergies and sustain portfolio value rapidly.

This disciplined approach transforms IT from a hurdle into a lever for accelerated synergy realization.

The measurable impact

When applied consistently, this model reduces integration timelines, strengthens resilience and creates the conditions for growth. In practice, we’ve seen organizations achieve up to a 30% reduction in integration cycle time and capture tens of millions in cost synergies within the first year post-merger.

For funds, this means:

• Faster TSA (Transition Service Agreement) exits, reducing dependency costs.
• De-risked integration through shared accountability and robust governance.
• Early wins in IT and operational efficiency, boosting portfolio value.
• Scalable models that work across staggered acquisitions or multi-entity integrations.

By embedding people-centric change management into integration planning, risks tied to culture and adoption are also mitigated. This ensures that integration is a technical exercise and a business transformation journey.

Enabling private equity to capture value faster

Post-M&A integration is no longer a back-office IT exercise but a frontline driver of value capture. For private equity investors, speed, resilience and governance in IT integration directly determine whether synergies are realized or lost.

At HCLTech, our Private Equity services are designed to help funds orchestrate business outcomes by transforming integration from a challenge into a competitive advantage. With industry-leading platforms, deep domain expertise and outcome-linked commercial models, we empower investors to move beyond integration hurdles and focus on accelerating portfolio growth.

The message is clear: in today’s deal landscape, value capture doesn’t wait and neither should your IT integration.