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NGO Mergers and acquisitions
A 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	
  
Associa-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	
  NetAid
Merged	
  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	
  Help
Now	
  known	
  as	
  Self-­‐Help	
  Africa
Merged	
  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>ve
Merged	
  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	
  Samvirke
Now	
  known	
  as	
  Ac>onAid	
  Denmark
Merged	
  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>on
Now	
  known	
  as	
  Helvetas	
  Swiss	
  Intercoopera>on
Merged	
  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>onale
Now	
  known	
  as	
  Première	
  Urgence-­‐Aide	
  Médicale	
  Interna>onale
Merged	
  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	
  AED
Now	
  known	
  as	
  FHI	
  360
Purchase	
  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	
  Diplomacy
Merged	
  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	
  CEDPA
Purchase	
  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	
  Hambre
Merged	
  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	
  Merlin
Merged	
  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?

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11 recent mergers between NGOs in the aid sector

  • 1. NGO Mergers and acquisitions A growing trend? 11 recent mergers between NGOs in the aid sector
  • 2. 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   Associa-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...
  • 3. Mercy  Corps  and  NetAid Merged  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.
  • 4. Self  Help  Development  Interna>onal  and  Harvest  Help Now  known  as  Self-­‐Help  Africa Merged  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.
  • 5. Task  Force  for  Child  Survival  and  Interna>onal  Trachoma  Ini>a>ve Merged  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.
  • 6. Ac>onAid  and  Mellemfolkeligt  Samvirke Now  known  as  Ac>onAid  Denmark Merged  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.
  • 7. Helvetas  and  Swiss  Founda>on  for  Development  and  Interna>onal  Coopera>on Now  known  as  Helvetas  Swiss  Intercoopera>on Merged  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.
  • 8. Première  Urgence  and  Aide  Médicale  Interna>onale Now  known  as  Première  Urgence-­‐Aide  Médicale  Interna>onale Merged  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.
  • 9. FHI  and  AED Now  known  as  FHI  360 Purchase  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.”
  • 10. CDC  Development  Solu>ons  and  U.S.  Center  for  Ci>zen  Diplomacy Merged  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.
  • 11. Plan  Interna>onal  USA  and  CEDPA Purchase  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.”
  • 12. Fundación  Luis  Vives  and  Acción  contra  el  Hambre Merged  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.
  • 13. 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  Merlin Merged  2013
  • 14. 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?