ARCK SYSTEM

Dewi Laraswati Anggraini

29115654
Background of Arck Company

 Arck Systems was a medium-sized manufacturer of enterprise

servers, which are powerful network computers used in corporations
to manage data.
 Provided data management hardware to businesses through network
servers.
 Provided these servers to all sizes of businesses and types of
industries
Background of Lux Company

 Leading provider of middleware

 Middleware is software that acts as an itermediatery
between software application so that they can exchange
data
Arck Company Merger with Lux Company

The reason for merger:

 Enterprise software market growing quickly
 Software gross margin doubled hardware
 Help better integrated hardware to the software aplication
 Help obtain a greater amount of enterprise knowledge and
information to the Industry
THE DEAL
 Arck moved quickly to purchase Lux Software, making an all-
stock offer which valued the company at 50% above its market
capitalization.
 The deal included a delayed bonus provision
 In addition, core members of Lux Software’s engineering staff
were given large stock option grants that vested if they stayed at
the company for three years.
BUSINESS ISSUE

There’s some problems since Arck merger with Lux :

 Arck and Lux sales representative have differing selling
techniques and methods (hardware and software)
 Targeting different decision makers
 Differences in sales compensation plans at Arck and Lux
SOLUTION
 Restructure Sales Force
 Reevaluate who we are hiring
 Redefineterms of compensation, job expectation and
company policies