Assignment of Contract: What Happens If Your Business Is Acquired
Business acquisitions, mergers, and restructurings raise important questions about your contracts with suppliers. This article explains what happens to your Progressive Robot engagement in these circumstances.
Can You Assign the Contract?
Our standard contract requires that you obtain our written consent before assigning the contract to another legal entity — including a new parent company, acquiring entity, or merged business. This is standard practice: we entered the agreement with you as a specific client, and we have the right to assess any new counterparty.
In Practice
Consent is rarely refused — particularly in straightforward acquisitions where the acquiring entity is a legitimate business. We will:
- Review the acquiring entity's details
- Confirm there are no conflicts of interest
- Issue a novation agreement (a formal document transferring the contract to the new entity)
- Update our records and billing accordingly
What If You Are the Acquirer?
If you are acquiring another business that has a relationship with Progressive Robot, notify your Account Manager. We will review both relationships and confirm how the engagement will be structured going forward.
Change of Control Clauses
Our contract includes a change of control clause: if Progressive Robot itself is acquired, your contractual rights are protected — the new owner takes on our obligations to you.
What to Do
If your business is entering an acquisition or restructuring process, notify your Account Manager as early as possible — ideally before the deal completes. Early notification gives us time to prepare documentation and avoid any disruption to active projects.