Tech mergers to drive activity
Leading corporate law firm William Fry said M&A activity this year should capitalise on a steady showing last year.
“The M&A market in Ireland appears to be on the path to recovery and, albeit against a backdrop of continued global economic uncertainties, there is cause to be hopeful of good performance in 2013 across a variety of sectors — particularly technology, pharmaceutical, medical, and biotechnology,” said Bryan Bourke, partner and head of corporate and M&A at William Fry.
The firm’s M&A report for 2012, published yesterday, shows a slight decline in the number of deals done last year, but an increase in their combined value.
A total of 82 transactions involving Irish firms were carried out last year; down from 85 in 2011. However, the aggregate value of said deals amounted to €17.1bn; up from €14.5bn in the previous year.
While private equity activity slipped in volume and value terms — down by 20% and 70% respectively — the Fry report does not include purchases of loan books or property transactions. High-profile purchases of loan books and commercial property last year, with distressed price tags, indicate that private equity activity is still high here&.
The latest report also shows 2012 as the first year outbound M&A activity — Irish companies buying abroad — outperformed inbound and domestic deals.
About 41% of all deals last year were categorised as outbound transactions, with inbound representing 38% and domestic 21%.
William Fry expects the technology/software sector to be a major area of activity growth in this and future years. “While most activity in this sector still takes the form of venture capital funding, larger transactions should soon follow,” it said, citing the Government’s interest in supporting technology start-ups as a good sign. It added that this year should also see steps taken to bring other state assets to market.
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