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Data shows fall in Irish corporate deals

Tuesday, October 02 10:46:21

The first nine months of this year saw a decline in the number and value of mergers, acquisitions and other corporate deals in Ireland, according to Experian.

During the period, there were 203 transactions announced in the Republic of Ireland, compared to the same period in 2011 in which there was a total of 226 deals - down 10.18pc.

The value of transactions decreased from E27.082 billion in the first nine months of 2011 to E25.689 billion in the same period of 2012 - down 5.15pc, the figures show.

Ireland represented approximately 3pc of the total volume of all European transactions and 6.7pc of their total value.

Davy Corporate Finance was the most active financial advisor in the first nine months of 2012 with 12 transactions, while Arthur Cox topped the league table for legal advisors by volume, with 16 assists.

"M and A has receded globally in the first nine months of the year and the Irish market has not been immune. Still, a 5pc fall in volume represents a strong performance given the current economic context - and the Republic of Ireland has outperformed much of the UK and Europe so far this year. The figures at the top-end, where there was a welcome upturn in high value deal making, are also encouraging," said Fin O'Driscoll, Managing Director of Experian Ireland.

There were 24 large deals announced in the first nine months of 2012, up by 20pc from the 20 transactions recorded for the same period of 2011.

Despite the increase in volume, the aggregate value of large deals declined by 2.15pc, from E24.351 billion in the first nine months 2011 to E23.828 billion in the corresponding period of 2012.

One of the largest, recently completed transactions in the first nine months of 2012 saw Exponent Private Equity acquire Dublin-based Fintrax Group Holdings Ltd, for E170 million.

Deal volume decreased in the mid-market segment in the first nine months of 2012 to 40 deals, down 25.93pc from the 54 transactions in the same period in 2011.

Values also declined to E1.688 billion in the first nine months of 2012 - representing a fall of 33.75pc over deals worth E2.548 billion in the same period of 2011.

The largest completed deal in the mid-market saw Carador Income Fund Plc of Dublin raise E101.45 million via a C share issue.

Deal flow in the small market value segment fell from 48 transactions in the first nine months of 2011 to 35 transactions for the same period of 2012, a decline of 27.08pc.

The aggregate value of deals saw a 5.8pc decrease; there were E172.44million worth of small transactions in the first nine months of 2012, down from E183.06million in the corresponding period of 2011.

One of the largest completed small transactions saw Trinity Biotech Plc acquire Swedish-based develop of point-of-care cardiac marker assays for a consideration of up to E10.46 million comprised of cash, American Depository Receipts (ADRs), and deferred cash dependent on certain milestones achieved.