My company recently purchased a site that has about 20% overlap with the products sold on another one of our sites. We were really after the offline assets of the company and the site was just an extra that came with the purchase.
Both the new and existing sites are PR3 and enjoy Google 1st page positions for our target terms.
We are concerned that when the domain registration info changes, the sites move to the same server, and it becomes evident that both sites are managed by the same company, the 20% overlap will get flagged as duplicate content and we'll be penalized by Google.
I'm looking for ideas on how to manage this situation.