Activity increases but value down on same period in 2011

Merger and acquisition activity increased in the first quarter of 2012 but is still significantly lower in value terms than the same period in 2011 according to research from NCB stockbrokers.

The NCB Corporate Finance M&A Tracker Survey shows 51 deals were recorded in the first three months of this year, up from 44 in the previous quarter.

However, transaction value in the first quarter totalled €792 million, down from €922 million during the same period in 2011.

The IT and Telecoms sectors saw the most activity, accounting for almost 20 per cent of the total deal volume during the first quarter, while financial services accounted for 17.6 per cent.

Notable deals in the IT and Telecoms sector included Velti Pic’s acquisition of Ydon Holdings for €29 million and Sage Pay Europe’s acquisition of Integral Computers for €20 million.

Jonathan Simmons, director of NCB Corporate Finance, said he expects the 2010 M&A market to be characterised by “the continuing prevalence of trade buyers in conventional deal situations”.