The number of mergers and acquisitions in the first half of the year fell by 20 per cent due to uncertain economic and political conditions, according to a report from law firm William Fry.
The company’s half-year report on Irish M&A activity, produced with Mergermarket, shows there were 185 deals in the first half of 2024, down from 231 in the same period the year before.
However, the value of Irish mergers and acquisitions in the first half of the year surged more than threefold to €17.8 billion, up from €5.8 billion previous year, off the back of two “megadeals”. Eight deals exceeded €250 million each.
William Fry head of corporate/M&A Stephen Keogh said continued geopolitical tensions, economic caution and a downgraded IMF growth forecast were behind the drop in transaction numbers.
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“Dealmakers have appeared reluctant to commit to transactions in the current uncertain political climate, with high-profile elections taking place across the globe in 2024,” he said. “Despite this, two major tech-sector deals boosted total deal value.”
The largest deal was announced at the beginning of June, when private-equity firm Apollo Global Management stated its intention to acquire a 49 per cent equity interest in a joint venture for Intel’s Irish manufacturing facility Fab 34 for €10.1 billion.
Located in Leixlip, Fab 34 is Intel’s high-volume manufacturing facility designed for wafers using the Intel 4 and Intel 3 process technologies. To date, Intel has invested $18.4 billion (€17 billion) in the plant.
Apollo said the deal was “among the largest private investments of its kind” and underscored “its role to help build the new economy including next-generation AI technology”.
The other deal which climbed above the €1 billion mark saw the Swedish private equity investor EQT move for Keywords Studios. EQT has agreed to pay €2.6 billion for the gaming company, which is listed in London but headquartered in Dublin.
Mr Keogh said although it was deals such as these that drove the surge in value, it was mid-market deals worth between €5 million and €250 million that made up 84 per cent of deal volume.
Ireland’s technology, media and entertainment, and telecommunications (TMT) sector dominated, with deals accounting for 79 per cent of total deal value and a quarter of volume.
Following TMT, business services was the second most active sector in the first half of 2024, making up 17 per cent of all transactions.
During the first half of the year, Ireland saw 110 inbound transactions totalling €16 billion, which was an 18 per cent fall in volume compared with the same period last year. However, the value of inbound activity rose by 245 per cent, largely due to the Apollo/Intel megadeal.
Fifteen of the 20 largest deals were inbound cross-border transactions, including four of the top five. The UK and the United States were the most significant sources of overseas bidders for Irish companies. UK acquirers were responsible for 41 deals in the first half of the year, while US bidders participated in another 22 transactions.
There were 35 private equity-driven transactions, reflecting a 19 per cent decline compared with the same period last year. Despite this reduction in volume, private equity continued to play a significant role in the Irish market, particularly in terms of investment value.
Private-equity acquirers were involved in half of the 20 largest deals of the year, including the top two transactions. Consequently, the total value of private-equity deals reached €14.4 billion, marking a 585 per cent increase from the first half of the previous year.
Looking ahead to the second half of 2024, Mr Keogh said the outlook was “uncertain” ahead of the general election.
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