Growth rarely happens in a straight line. Companies expand into new markets, acquire competitors, merge operations, and restructure teams to stay competitive in rapidly changing industries. Behind many of these business transformations lies a common strategy: mergers and acquisitions (M&A).
While the terms “merger” and “acquisition” are often used interchangeably, they are not the same. A merger usually represents two companies combining to operate as a unified entity, whereas an acquisition involves one company taking over another.
The difference between merger and acquisition may appear subtle, but its impact on leadership, employees, hiring strategies, workplace culture, and business operations can be significant.
For HR leaders, recruiters, and business decision-makers, understanding the difference between merger and acquisition goes beyond corporate terminology.
M&A activities can reshape workforce structures, create talent gaps, influence employer branding, and trigger large-scale hiring or restructuring decisions. From employee retention challenges to leadership integration and workforce planning, people strategy becomes a critical factor in determining whether an M&A transition succeeds or fails.
In this guide, we’ll break down the key differences between mergers and acquisitions, explore real-world examples, understand their impact on employees and hiring, and examine how HR teams and RPO partners can support smooth organizational transitions.
What Is a Merger?
A merger happens when two companies combine to become one new organization.
Companies A and B combine to create a new entity (Company C).
Instead of operating separately, both businesses join their resources, employees, technologies, and operations to work together under a common structure.
In simple terms, a merger is like two companies deciding to “team up” to grow faster, enter new markets, reduce competition, or improve business performance.
Usually, mergers happen when both companies see mutual benefits in working together. In many cases, the companies involved are of similar size and agree to share ownership, management responsibilities, and business operations.
Example of a Merger
If two pharmaceutical companies combine to create a larger healthcare company with a wider product portfolio, that is considered a merger.
Why Do Companies Merge?
Companies may choose to merge for several reasons, such as:
- Expanding into new markets
- Increasing market share
- Reducing operational costs
- Accessing new technology or expertise
- Strengthening their competitive position
- Improving overall business growth
What Happens After a Merger?
After a merger:
- Teams and departments are integrated
- Leadership structures may change
- Hiring strategies can shift
- Employees may move into new roles
- Company culture and policies are often restructured
This is why mergers have a major impact not only on business operations but also on HR, recruitment, and workforce planning.
What is Acquisition?
An acquisition happens when one company purchases or takes control of another company.
Company A buys Company B; Company B is absorbed and often ceases to exist independently.
In this process, the acquiring company becomes the primary owner, while the acquired company may either continue operating under its existing brand or become fully integrated into the new business.
In simple terms, an acquisition is when a larger or stronger company “buys” another company to expand its business, enter new markets, gain technology, acquire talent, or reduce competition.
Unlike a merger, where two companies combine more equally, an acquisition usually involves one company having greater control over decisions, operations, and leadership.
Example of an Acquisition
If a large technology company buys a smaller startup to gain access to its software, products, or skilled workforce, it is called an acquisition.
Why Do Companies Make Acquisitions?
Companies pursue acquisitions for several business reasons, including:
- Expanding into new industries or locations
- Acquiring new technology or intellectual property
- Gaining skilled employees or leadership talent
- Increasing customer base and market share
- Eliminating competition
- Accelerating business growth
What Happens After an Acquisition?
After an acquisition:
- The acquiring company often controls business decisions
- Leadership and reporting structures may change
- Employees may face restructuring or role changes
- Hiring plans can expand or slow down
- Company policies and workplace culture may be adjusted
This is why acquisitions significantly affect HR teams, recruitment planning, employee retention, and organizational integration.
Merger vs Acquisition: Key Differences
A merger happens when two companies combine to form a single new organization, usually with shared ownership and management. An acquisition occurs when one company purchases and takes control of another company.
In a merger, both businesses operate as partners, while in an acquisition, one company becomes the dominant owner.
Mergers are generally collaborative, whereas acquisitions often involve one company absorbing the other.
| Basis of Difference | Merger | Acquisition |
| Meaning | Two companies combine to form one new organization | One company purchases and takes control of another company |
| Structure | Company A and Company B join together to create a new entity (Company C) | Company A buys Company B, and Company B is absorbed into the acquiring company |
| Decision Process | Usually friendly and mutually approved by both companies’ boards and shareholders | Can be friendly or hostile, where the acquiring company may take over without full consent |
| Ownership | Ownership is generally shared between both companies | Ownership shifts completely to the acquiring company |
| Control | Both companies participate in management and decision-making | The acquiring company gains full control over operations and decisions |
| Company Size | Commonly occurs between companies of similar size and market value | Typically involves a larger company acquiring a smaller company |
| Company Identity | A new company identity, leadership structure, or brand may be created | The acquired company may lose its separate identity and operate under the buyer’s brand |
| Management Structure | Leadership and responsibilities are usually shared | The acquiring company’s management controls the business |
| Goal | To create synergy, reduce costs, expand market share, and strengthen business capabilities | To quickly gain access to technology, products, customers, markets, or specialized talent |
| Employee Impact | Teams, cultures, and operations are integrated collaboratively | Employees may experience restructuring, reporting changes, or leadership shifts |
| Nature of Partnership | Seen as a collaborative partnership between two companies | Seen as a takeover where one company becomes dominant |
| Example Scenario | Two telecom companies combine to expand nationwide operations | A global tech company acquires a startup for its innovation and talent |
Types of Mergers and Acquisitions
There are five main types of acquisitions based on the relationship between the buyer and seller: horizontal, vertical, conglomerate, congeneric, and acqui-hire.
Some deals happen between competitors, while others focus on expanding into new markets, acquiring technology, or gaining skilled talent. The type of M&A directly affects employees, hiring plans, leadership structures, and workplace culture.
Here are the most common types of mergers and acquisitions explained in simple terms:
1. Horizontal Merger or Acquisition
A horizontal M&A happens when two companies in the same industry and offering similar products or services combine.
Example:
Two telecom companies merging to increase market share.
Why Companies Do It:
- Reduce competition
- Expand customer base
- Increase market presence
- Lower operational costs
HR Impact:
Since both companies often have similar teams and departments, there can be duplicate roles. HR teams usually focus on:
- workforce restructuring
- retaining top talent
- managing layoffs carefully
- integrating company cultures
2. Vertical Merger or Acquisition
A vertical M&A occurs when a company acquires another company from its supply chain, such as a supplier or distributor.
Example:
A car manufacturer acquiring a parts supplier.
Why Companies Do It:
- Improve supply chain control
- Reduce dependency on third parties
- Lower production costs
- Improve operational efficiency
HR Impact:
There may be fewer overlapping roles, but cultural differences between operational and corporate teams can create challenges. HR must focus on:
- communication
- process alignment
- workforce collaboration
3. Conglomerate Merger
A conglomerate merger happens when two companies from completely different industries combine.
Example:
A technology company merging with a food processing company.
Why Companies Do It:
- Diversify business operations
- Reduce market risks
- Expand investment opportunities
HR Impact:
Because the businesses are unrelated, employee roles may not overlap much. However, HR teams must manage:
- leadership alignment
- unified company policies
- employer branding
- organizational integration
4. Market Extension Merger or Acquisition
This type of M&A happens when a company enters a new geographic market by merging with or acquiring another company operating in that region.
Example:
An Indian retail brand acquiring a company in Southeast Asia.
Why Companies Do It:
- Expand into new locations
- Reach new customer groups
- Grow global presence faster
HR Impact:
HR and recruitment teams often need to:
- hire local talent quickly
- build regional hiring strategies
- adapt workplace culture
- create effective employee onboarding systems and processes
5. Acqui-hire
An acqui-hire happens when a company acquires another business mainly to gain its skilled employees and leadership talent.
Example:
A large tech company buying a startup for its software engineers and developers.
Why Companies Do It:
- Acquire specialized talent
- Strengthen innovation teams
- Speed up product development
HR Impact:
In acqui-hires, people are the main asset. HR teams focus heavily on:
- employee retention
- compensation and benefits
- cultural integration
- role clarity after acquisition
6. Private Equity Buyout
A private equity buyout occurs when an investment firm purchases a company to improve its performance and later sell it for profit.
Example:
A private equity firm acquiring a struggling retail chain to restructure operations.
Why Companies Do It:
- Increase profitability
- Improve operational efficiency
- Restructure the business
- Prepare the company for resale
HR Impact:
These deals often involve:
- cost-cutting measures
- workforce restructuring
- performance tracking
- rapid organizational changes
HR teams must balance speed, compliance, employee communication, and business goals during the transition.
Real-World Examples of M&A
Behind every major M&A transaction is a workforce story. Here are examples that illustrate how these deals played out on the ground for HR teams and employees.
Microsoft Acquires LinkedIn (2016) | Acquisition | Tech
Microsoft’s $26.2B acquisition of LinkedIn is one of the most studied in tech M&A history- not just for its deal size, but for its integration approach. Microsoft deliberately retained LinkedIn’s independent brand, leadership team, and culture, setting a benchmark for “preserve and grow” acquisition models.
HR takeaway: Allowing the acquired brand to operate with cultural autonomy significantly reduced talent attrition. LinkedIn’s engineering and product leadership remained largely intact for years post-acquisition.
Amazon Acquires Whole Foods (2017) | Acquisition | Retail
Amazon’s entry into physical retail via Whole Foods created immediate workforce anxiety across 90,000+ employees. The cultural contrast- Amazon’s data-driven, efficiency-first ethos versus Whole Foods’ values-led, organic culture was stark and visible from Day One.
HR takeaway: When the cultural gap between acquirer and target is wide, employer branding and internal communications must begin immediately, not after integration plans are finalised.
Exxon + Mobil Merger (1999) | Merger | Energy
One of the largest corporate mergers in history resulted in over 16,000 job eliminations. The scale of the workforce restructuring, combined with the complexity of merging two historically independent energy giants, required multi-year HR integration planning.
HR takeaway: In large horizontal mergers, redundancy is structural, not incidental. Proactive succession planning and transparent communication timelines reduce flight risk among critical talent.
HP + Compaq Merger (2002) | Merger | Technology
Often cited as a cautionary tale, HP’s $25B merger with Compaq resulted in 15,000 layoffs and years of cultural tension. Despite operational synergies, the failure to align leadership philosophies and workforce strategies derailed integration for nearly a decade.
HR takeaway: Financial synergies mean nothing without workforce alignment. Cultural due diligence must precede, not follow deal closure.
How Mergers and Acquisitions Affect Employees
Mergers and acquisitions (M&A) can significantly impact employees at every level of an organization. While companies often announce mergers and acquisitions as growth opportunities, employees may experience uncertainty, stress, and concerns about their future roles within the business.
- 47% of key employees leave within 1 year of an acquisition
- 75% of M&A deals fail to deliver expected shareholder value
- 3× more likely to see talent loss when HR is excluded from due diligence
From restructuring and leadership changes to cultural integration and job security, the effects of M&A extend far beyond financial performance. For HR leaders and employers, managing employee experience during mergers and acquisitions is critical to maintaining productivity, morale, and talent retention.
Key Employee Challenges During Mergers and Acquisitions
- Fear of layoffs and redundancy
- Changes in reporting structures and leadership
- Cultural differences between organizations
- Reduced employee engagement and productivity
- Increased employee attrition risk
- Uncertainty around career growth and job stability
Studies consistently show that poor workforce integration is one of the biggest reasons mergers and acquisitions fail to achieve long-term success. This is why HR teams, leadership, and recruitment partners play a crucial role during organizational transitions.
The Employee Experience During Mergers and Acquisitions
Employees usually go through several emotional and professional stages during an M&A transition. Understanding these phases helps HR teams create better communication, retention, and workforce planning strategies.
1. Shock and Speculation
The announcement of a merger or acquisition often creates immediate uncertainty across the organization. Employees may worry about:
- job security
- layoffs
- salary changes
- reporting structures
- company culture shifts
At this stage, rumors spread quickly, and employee anxiety is usually at its highest.
HR Focus:
- transparent communication
- leadership visibility
- regular employee updates
- addressing workforce concerns early
2. Uncertainty and Productivity Decline
As the transition continues, employees begin evaluating their future within the organization. Productivity often decreases because employees become distracted by uncertainty and workplace changes.
Top performers and highly skilled employees may also begin exploring new job opportunities, increasing talent retention risks.
HR Focus:
- employee engagement initiatives
- retention conversations
- manager communication training
- reassurance around career opportunities
3. Role Clarity and Organizational Restructuring
During this phase, companies start defining new organizational structures, leadership hierarchies, and reporting relationships.
Some employees may receive expanded responsibilities and growth opportunities, while others may face role changes or redundancies.
HR Focus:
- workforce planning
- succession planning
- transparent restructuring processes
- internal mobility opportunities
4. Cultural Integration and Adaptation
One of the biggest challenges in mergers and acquisitions is combining two different workplace cultures. Employees may struggle to adapt to:
- new leadership styles
- workplace expectations
- communication methods
- organizational values
If cultural integration is poorly managed, employee disengagement and attrition can increase significantly.
HR Focus:
- culture integration programs
- leadership alignment
- employee feedback initiatives
- team-building activities
5. Stabilization and Long-Term Growth
Over time, employees begin adapting to the new organizational structure, processes, and culture. The business gradually reaches stability and starts focusing on future growth.
At this stage, companies must rebuild trust, strengthen employer branding, and improve employee experience to support long-term retention and business success.
HR Focus:
- employer branding
- recognition and rewards programs
- long-term workforce planning
- learning and development initiatives
HR Challenges During Mergers and Acquisitions
Mergers and acquisitions (M&A) create major challenges for HR teams. During an M&A transition, HR professionals must manage daily workforce operations while also handling organizational restructuring, employee concerns, cultural integration, and workforce planning.
Because employees, leadership structures, compensation policies, and HR systems often differ between the two companies, HR plays a critical role in ensuring a smooth transition.
Here are some of the biggest HR challenges during mergers and acquisitions:
1. HR Due Diligence
Proper HR due diligence helps businesses avoid unexpected liabilities and workforce complications.
Before the merger or acquisition is finalized, HR teams must carefully review the target company’s:
- employee contracts
- salary structures
- benefits programs
- compliance records
- legal risks
- union agreements
Missing these details can create serious financial, legal, and employee-related issues after the deal is completed.
2. Compensation and Benefits Alignment
Poor compensation planning can reduce employee morale and increase talent loss after M&A.
Two companies rarely have the same:
- salary bands
- bonus structures
- employee benefits
- leave policies
- performance incentives
Aligning compensation fairly without causing employee dissatisfaction or attrition can be difficult.
3. Workforce Mapping and Role Clarity
Clear workforce mapping improves restructuring decisions and helps retain key talent.
HR teams must identify:
- duplicate roles
- critical skill gaps
- leadership overlaps
- department restructuring needs
Without proper workforce planning, companies may make poor integration decisions that affect productivity and employee experience.
4. HR Technology and Systems Integration
Efficient HR system integration reduces operational disruptions and improves employee experience.
Merging two companies often means combining:
- payroll systems
- HR software
- attendance tools
- performance management platforms
- employee databases
Data migration and system integration can take months and require significant HR support.
5. Manager Communication and Leadership Alignment
Middle managers are usually the first point of contact for employee concerns during M&A. However, many managers receive limited information and struggle to answer employee questions confidently.
HR teams must support managers with:
- communication guidelines
- leadership development and training
- escalation processes
- employee messaging
6. Employee Layoffs and Outplacement Support
Some mergers and acquisitions involve workforce restructuring and layoffs. How companies manage employee exits can directly affect employer branding and market reputation.
HR teams often need to provide:
- severance support
- career transition assistance
- outplacement services
- respectful communication
A positive exit experience protects long-term employer reputation and employee trust.
Common HR Mistake During Mergers and Acquisitions
One of the biggest mistakes companies make during mergers and acquisitions is involving HR too late in the process.
Many organizations treat HR as an execution team instead of a strategic business partner. When HR is excluded from early planning and due diligence, companies may overlook:
- cultural conflicts
- talent retention risks
- leadership gaps
- workforce integration challenges
Early HR involvement helps organizations improve employee retention, workforce stability, and overall M&A success.
Recruitment and Workforce Planning During Mergers and Acquisitions
Mergers and acquisitions (M&A) can significantly impact recruitment strategies and workforce planning. During this period, companies often experience two opposite hiring situations, either a temporary hiring freeze or a sudden increase in hiring demand.
Both situations require careful planning, strong communication, and a flexible hiring strategy to ensure business continuity and workforce stability.
The Hiring Freeze Phase During M&A
After a merger or acquisition announcement, many organizations temporarily pause hiring until leadership finalizes restructuring plans and workforce decisions.
While hiring freezes may help control costs and avoid unnecessary recruitment, poorly managed freezes can create new challenges such as:
- delays in filling critical roles
- reduced productivity
- candidate drop-offs
- increased workload on existing employees
- slower business operations
Instead of completely stopping recruitment, companies should implement a structured hiring freeze with clear exceptions for business-critical positions.
Best Practices During a Hiring Freeze
Identify Critical Roles
Define which positions are essential for business continuity and should remain open during the freeze.
Maintain Candidate Communication
Keep candidates informed about hiring timelines and updates to prevent losing strong talent from the pipeline.
Focus on Workforce Planning
Use the hiring slowdown to evaluate:
- workforce gaps
- future hiring needs
- leadership requirements
- skill shortages
Align Recruitment Partners
Keep external recruitment agencies and RPO partners informed about hiring timelines and expected future demand.
The Hiring Ramp-Up Phase After M&A
Once restructuring plans are finalized, many companies suddenly need to scale hiring quickly. This often happens because of:
- employee attrition
- business expansion
- new department creation
- geographic expansion
- leadership restructuring
Organizations that are unprepared for rapid hiring often struggle with:
- slow hiring processes
- poor candidate experience
- inconsistent job structures
- talent shortages
This is why scalable recruitment infrastructure becomes essential after mergers and acquisitions.
Best Practices for Post-M&A Hiring
Standardize Job Roles and Structures
Align job titles, salary bands, reporting structures, and role expectations across the merged organization.
Strengthen Employer Branding
Communicate a clear employer brand message that reflects the vision and culture of the newly combined organization.
Build Location-Based Hiring Strategies
If the merger or acquisition expands the business into new regions, companies should create localized hiring plans to attract regional talent.
Use Workforce Intelligence
Prioritize hiring based on business-critical functions, operational needs, and future growth plans.
Consider RPO Support
Many organizations partner with Recruitment Process Outsourcing (RPO) providers to manage large-scale hiring efficiently without overwhelming internal talent acquisition teams.
Why Workforce Planning Matters During M&A
Successful recruitment during mergers and acquisitions is not just about hiring quickly- it is about hiring strategically.
Companies that succeed after M&A are the ones that:
- understand their future workforce needs
- align hiring with business goals
- retain critical talent
- create scalable recruitment systems
- build a strong employer brand during transition
Effective workforce planning helps organizations navigate uncertainty, reduce talent gaps, and support long-term business growth after mergers and acquisitions.
Role of RPOs During Organizational Transition
Mergers and acquisitions (M&A) often create major hiring and workforce challenges for organizations. During this period, internal talent acquisition teams may already be managing restructuring, employee concerns, leadership changes, and workforce integration.
This is where Recruitment Process Outsourcing (RPO) providers can play a critical role.
RPO partners help companies manage hiring demands during organizational transitions by providing scalable recruitment support, workforce planning expertise, talent intelligence, and faster hiring capabilities.
Instead of overloading internal HR teams, organizations can use RPO solutions to maintain hiring continuity and support long-term business growth during M&A.
How RPOs Support Mergers and Acquisitions
1. Managing Sudden Hiring Demand
After restructuring, many organizations need to hire quickly due to:
- employee attrition
- business expansion
- new leadership structures
- regional growth
- newly created departments
RPO providers can rapidly scale recruitment operations without the delays of building large in-house hiring teams.
Benefit:
Faster hiring during periods of organizational change and workforce expansion.
2. Standardizing Recruitment Processes
When two companies merge, they often have different:
- hiring workflows
- interview processes
- job structures
- recruitment technologies
- candidate evaluation methods
RPO partners help standardize and streamline recruitment processes across the newly combined organization.
Benefit:
Improved hiring consistency, better candidate experience, and smoother recruitment operations.
3. Providing Talent Intelligence
Many RPO providers offer workforce and talent market insights, including:
- salary benchmarking
- talent availability analysis
- hiring trends
- regional workforce data
- competitor hiring insights
This helps organizations make smarter workforce planning decisions during M&A transitions.
Benefit:
Better hiring strategies aligned with business goals and market conditions.
4. Supporting Employer Branding
Mergers and acquisitions can create uncertainty among candidates and employees. Companies may struggle to communicate their new identity, culture, and growth vision.
RPO partners help organizations build clear employer branding and recruitment messaging during transitions.
Benefit:
Stronger candidate trust and improved talent attraction during organizational change.
5. Enabling Location-Based Hiring
Many acquisitions help companies expand into new cities, states, or countries where they may not already have hiring infrastructure.
RPO providers with local market expertise can quickly activate hiring pipelines in new regions.
Benefit:
Faster regional hiring and improved access to local talent pools.
6. Supporting Leadership Hiring
Organizational restructuring often creates demand for:
- senior managers
- directors
- vice presidents
- transformation leaders
RPO partners can support leadership hiring alongside executive search firms to fill critical roles quickly.
Benefit:
Faster leadership integration and improved organizational stability.
When Should Companies Engage an RPO During M&A?
The best time to involve an RPO partner is before large-scale hiring demand begins.
Organizations that onboard RPO providers early during workforce planning and integration phases are often able to:
- reduce time-to-hire
- improve hiring quality
- manage workforce transitions smoothly
- scale recruitment faster after restructuring
Talent Retention Strategies After an Acquisition
Retaining key employees after an acquisition is one of the most important priorities for HR teams and business leaders.
During mergers and acquisitions, top performers often decide within the first few months whether they want to stay with the organization or explore new opportunities.
This makes early employee engagement and retention planning extremely important.
How to Retain Employees During Mergers and Acquisitions
1. Identify Critical Talent Early
Before the acquisition process is completed, companies should identify:
- business-critical employees
- leadership talent
- high performers
- employees with specialized knowledge
- influential team members
Best Practices:
- map critical roles
- evaluate attrition risks
- review compensation competitiveness
- create retention plans early
Why It Matters:
Losing key employees during M&A can disrupt operations and slow integration.
2. Provide Role Clarity and Career Growth
Employees are more likely to stay when they clearly understand:
- their future responsibilities
- career growth opportunities
- leadership pathways
- organizational goals
Why It Matters:
Uncertainty about future roles is one of the biggest drivers of employee attrition after acquisitions.
3. Maintain Strong Manager Relationships
Employees often stay because of trusted managers and leadership support.
During organizational transitions, companies should try to maintain:
- stable reporting structures
- leadership continuity
- regular manager communication
Why It Matters:
Strong manager relationships improve employee confidence and engagement.
4. Continue Employee Recognition
M&A transitions can disrupt performance reviews, rewards programs, and employee recognition initiatives.
Organizations should continue recognizing employee contributions during periods of change.
Why It Matters:
Recognition helps maintain morale, motivation, and employee trust.
5. Communicate Honestly and Frequently
Employees handle uncertainty better when companies communicate openly and regularly.
Even when leadership does not have all the answers, transparent communication helps reduce:
- rumors
- confusion
- anxiety
- disengagement
Why It Matters:
Trust and communication are critical for employee retention during mergers and acquisitions.
FAQs
What is the main difference between a merger and an acquisition?
The main difference between a merger and an acquisition is ownership and control. In a merger, two companies combine to form one new organization with shared management. In an acquisition, one company buys and controls another company, which may lose its independent identity.
What does M&A mean in business, and why does it matter for HR?
M&A stands for mergers and acquisitions, where companies combine or one company acquires another to support business growth. For HR teams, M&A affects hiring, workforce planning, employee retention, leadership structures, and organizational culture.
How do mergers and acquisitions affect employees?
Mergers and acquisitions often create uncertainty for employees around job security, leadership changes, and workplace culture. Employees may experience anxiety, reduced productivity, restructuring, or role changes during the transition process.
What are the biggest HR challenges during M&A?
The biggest HR challenges during mergers and acquisitions include workforce restructuring, compensation alignment, cultural integration, leadership changes, employee retention, and HR system integration.
How can an RPO help during mergers and acquisitions?
RPO providers help organizations manage hiring during mergers and acquisitions by offering scalable recruitment support, workforce planning, talent intelligence, employer branding, and faster hiring during restructuring and business expansion.
Navigate Organizational Change with the Right Hiring Partner
Mergers and acquisitions can reshape your workforce overnight from leadership restructuring to rapid hiring demand and talent retention challenges. Having the right recruitment strategy in place is critical for a smooth transition.
At Taggd, we help organizations manage workforce planning, scalable hiring, and talent acquisition during periods of business transformation. Whether you’re navigating post-merger integration, expanding into new markets, or building leadership teams, our RPO solutions are designed to help you hire faster and smarter.