Value of mergers and acquisitions falls

EXPERIAN, the global information services company, says the value of mergers and acquisitions in the last quarter fell by 42.7% to €7.5 billion quarter on quarter.

In Q3 deals worth more than €13bn were transacted.

The number of deals rose marginally from 67 to 69 in the last quarter and, despite an inhospitable deal-making environment, overall transaction volumes for the year grew.

A total of 260 mergers and acquisitions and initial public offering transactions were announced in 2010, an overall 1.56% rise on the 2009 figure of 256.

Activity for the year was up most sharply in the large-cap sector, where deal volumes rose by 113.3%.

Volumes in the mid-market segment rose by 17.4%, while smaller transactions fell 12.1% in 2010.

The increased level of deal making in the Republic of Ireland bucked a Europe-wide trend.

Despite the sharp decrease in value in Q4, transaction values for the year rose sharply.

Deals totalling €35.5bn were announced and that showed a substantial 72.3% rise compared with the 2009 figure of €20.6bn.

Experian said the rise in value was most evident in the large-market segment, where the €33.26bn value of deals last year was an increase of 78% over 2009.

The report said a spate of middle-priced deals resulted in the value of the mid-market segment almost doubling, while the overall value of small transactions fell by 10.4% for the year.

Overall €750.5bn worth of transactions were announced in Europe in 2010, down by 10.7% on the €840.5n achieved the previous year.