STERIS Corporation closed its $1.9 billion acquisition of Synergy Health plc on November 2, 2015 after defeating an attempt by the FTC to block the transaction. Notably, the FTC's stated concern was that Synergy Health was about to enter the US market in competition with STERIS, and the acquisition would eliminate an important potential competitor.1 Although the government lost, the case highlights US regulators' willingness to challenge the acquisition of potential competitors in technology markets. It also illustrates how difficult it can be to properly assess the competitive implications of prospective entry. Perhaps most practically, it underscores the need for technology firms to seek legal counsel early in the process of negotiating a merger or acquisition so that the issue can be appropriately factored into the evaluation of the regulatory risks posed by a transaction.
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