A merger subsidiary is an aquisition vehicle used by one company to acquire another company in a forward triangular merger or a reverse triangular merger. The acquiring company in a triangular merger will form a merger subsidiary, which is a third, separate company that is wholly owned by the acquiring company (in this context, the acquiring company is called the "Parent"). The merger subsidiary will then merge with the acquired company in the merger. The merger subsidiary may continue to exist after the merger (as in a forward triangular merger) or it may disappear in the merger (as in a reverse subsidiary merger). A merger subsdiary is often referred to as Merger Sub in the merger agreement.