Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


Term of the day

vertical integration

The merger with or acquisition of a company that performs a different role in the same industry - for instance, when the producer of a good buys the distributor of the same product. This contrasts with horizontal integration, which involves combining with a company that has the same role in the same industry. 

Vertical integration does not necessarily require a merger or acquisition. It is often the result of internal development. The choice between outsourcing and vertical integration is a...