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I installed the CRM module. The "Merge" option then appeared in the actions drop down.

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We do not have "Merge the selected contacts" as an option in the actions drop down.  Is there somewhere that needs to be enabled?

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1.  filter/search for the contacts in question

2.  click the list view button 

3.  check mark (select) the two contacts

4.  click the actions button

5.  Click Merge the selected contacts

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