There are many benefits of doing that and to begin with, every successful company is composed of people with different skills and different ways of thinking, thus merging two companies increases the variety in both skills and ideas which would increase productivity. But why not hire new people?
Hiring new people might be time consuming. Interviewing each person to find the suitable skills takes a lot of time and resources ideas but buying a new company not only adds many new people at once, but also these people are already settled so that is a great deal. In addition to that , each company has its own costumers, merging two companies will lead to merging customers who preferred two different companies to love one and this is a win because the new business has a larger customer base. Furthermore, the news of merging two companies spreads out quickly through customers and, if you think about it, is free advertisement and people will believe that the first company is strong.
Now let’s think why more acquisitions happened in the last few months? Well I think the main reason is because of both the Ukraine-Russian war and Covid-19. Both have affected many companies even the strongest one but here is the catch, stronger companies absorbed shocks better than smaller ones, giving them opportunities to buy the struggling companies with their assets. And if the stronger company didn’t do that now , after the war and end of covid-19, the struggling companies may start performing better. But why does the struggling company accepts the deal of being acquired? I believe the reason is because the business might not arise again, consequently the best and safest decision to be taken is accepting the deal.