In this article I investigate the relation between the employee-friendly practices of the acquiring firm and the acquisition performance. I find a positive relation between employee friendliness of the acquirer and acquisition performance. Employee friendliness of the acquirer is also positively linked to acquisition completion probabilities and completion speeds. The effect of employee-friendly policies on performance is stronger for human-capital-intensive firms. The positive relation between employee friendliness and acquisition performance is robust to an alternative measure of employee friendliness and endogeneity corrections. The results reflect the importance of human capital and employee-related policies for the long-term success of an acquisition.