Cultural due diligence in M&A: Textron Systems & AAI integration
- Christiane Wuillamie
- Jan 10, 2025
- 3 min read
Two defence sector organisations combined technology and talent — but culture mattered just as much as strategy.
This case study explains how PYXIS helped Textron Systems Company (TSC) and AAI identify hidden integration risks through cultural due diligence and build practical integration actions that supported long-term success.
The acquisition and the hidden challenge
A strategic deal raised cultural questions.
When Textron Systems Company (TSC) acquired AAI, the combination seemed strategically sound: TSC’s defence platforms and AAI’s reconnaissance technology fit well on paper. However, CEO Frank Tempesta was concerned about how cultural differences between the two organisations would affect the integration’s success.
Why culture due diligence matters in M&A
Financial and legal diligence isn’t enough.
Most acquisition assessments focus on financials and liabilities. Few assess how well two corporate cultures align — even though incompatible cultures are frequently cited in studies as a leading reason mergers fail to deliver sustainable value. PXIXIS’s cultural due diligence was designed to fill this gap by evaluating cultural fit before integration planning began.
Conducting a tailored culture assessment
Parallel assessments revealed hidden integration risks.
PYXIS deployed a customised culture assessment to senior and middle managers at both TSC and AAI, supplemented by interviews with senior leaders. The results were assessed visually and analytically, showing differences and similarities in culture that traditional integration assessments had overlooked.
What emerged was not just a list of perceptions, but a data-informed view of potential integration risks — including where norms, expectations and decision practices diverged.
Turning insight into integration actions
Cultural insight shaped the integration strategy.
The culture assessment sparked active discussion among the senior leadership team.
Based on the findings, the integration plan was revised to:
Restructure the senior team to focus on merger synergies
Revise the organisation structure post-merger
Expand the integration team to include more AAI members
Review and adopt best practices from both companies
Align the newly expanded leadership team around shared goals
Implement integration workshops for cross-company collaboration
Upgrade and expand integration communications
These actions directly addressed the cultural risks highlighted in the due diligence and helped bridge gaps in norms and expectations.
Outcomes from culturally informed integration
Integration strengthened and future opportunities emerged.
By incorporating cultural due diligence into the M&A process and acting on the insights, TSC and AAI achieved a more seamless integration.
The expanded organisation has:
A more cohesive senior leadership team
Better aligned structures and processes
Enhanced internal communication across legacy boundaries
New business opportunities where combined strengths have unlocked contracts
This case shows how cultural understanding can accelerate integration and support longer-term performance.
What leaders should take from this
Culture due diligence reduces M&A risk.
For executives and boards considering acquisitions:
Include culture in due diligence, not as an afterthought
Use data and assessment, not anecdote, to compare cultures
Translate cultural insight into practical integration actions
Engage leadership in interpreting and acting on findings
These steps help ensure that strategy and culture evolve together, rather than collide.
Key topics covered in this article
Why cultural due diligence matters in mergers and acquisitions
Identifying integration risks through tailored culture assessment
Turning assessment insight into practical integration actions
Integrating teams, structures and leadership after a deal
How cultural alignment supports long-term performance
About PYXIS Culture Technologies
PYXIS Culture Technologies helps organisations understand and improve the cultural drivers of performance, safety, and cyber resilience.
By combining deep research, operational experience, and advanced culture analytics, we help organisations close the gap between strategy and everyday behaviour.
Our approach is effective:
We treat culture as a systemic business issue, not an HR initiative.
We identify key internal business practices that create integration and performance risks and provide effective solutions you can immediately implement.
We link cultural insights to business and financial metrics, showing a clear ROI for strengthening organisational alignment.
Connecting the dots
For more information or to request a demo on how mapping culture drivers can improve business results, contact us here.