M&A activity in Ireland at a low in third quarter

The number of mergers and acquisitions (M&A) recorded in Ireland during the third quarter was down almost a half, new figures show.

A total of 39 deals were announced during the period July to September, the lowest quarterly volume since early 2010, and down 47.3 per cent versus the 74 transactions reported for the same quarter a year earlier.

New data from Investec shows the number of deals recorded was down 26.4 per cent compared to the second quarter of 2016, when 53 transactions were announced.

Total deal value of €2.8 billion was down 80 per cent versus the third quarter of 2015, when a number of sizeable acquisitions, including Bohai Leasing’s €6.5 billion deal for Avolon and the €3.8 billion merger between Paddy Power and Betfair, were announced.

Transactions

Verizon’s €1.96 billion purchase of Tallaght-based

Fleetmatics

was the biggest deal recorded in the third quarter. Other notable transactions included the John Malone-led purchase of

Fitzpatrick Lifestyle Hotels

for €193.6 million and RIU’s acquisition of the

Gresham

hotel for €92 million.

Foreign acquisitions by Irish companies was the most prevalent type of transaction recorded during the quarter under review, accounting for 17 of the total deals announced.

The IT and telecoms sector was the most active in terms of volume terms, recording eight deals.

The number of M&A deals recorded in the first nine months of the year is down 19 per cent compared to the same period a year earlier.

Overall, 152 deals had been announced till the end of September, as against 187 for the corresponding nine months of 2015.