Leadership

M&A activity holds up in Q2

02.07.2009
Irish mergers and acquisitions (M&A) and flotations, rights issues and placements activity in the second quarter of 2009 fell well below the peak of activity reached in 2008, according to the latest data from Experian company Corpfin.

However, despite the fall off in pace of M&A and ECM activity from 2008, the second quarter of 2009 held up well compared the first quarter of the year, Experian said.

While the number of transactions in Q2 of 2009 (59) were up just one on the number carried out in Q1 2009 (58), the recorded value of deals in the second quarter saw a 195pc increase on the value of Q1 2009 deals, rising to €4.81bn from €1.63bn. However, the figures for Q2 were boosted by the proposed €4.06bn takeover of Eircom Group.

The greatest activity was in the mid-cap range (€11.61m-€116.11m) where 13 transactions were concluded, compared to just five in the first quarter of the year.

Deals of note in Q2 included the Rob Topfer-led group’s proposed €4.06bn takeover of Eircom; Fexco’s disposal of its Spanish subsidiary to Western Union for €95.91m; and, in the small-cap range, RSA’s acquisition of Dublin insurer Benchmark Underwriting for €6.39m.

According to the data, Davy Corporate Finance was the most active of financial and legal advisors in Q2 2009 in terms of volume. Its two deals saw it rise to the top position from No 9 in the first quarter.

However, in terms of deal value, Stamford Partners topped the Q2 2009 tables with €34.83m worth of deals, followed by Davy Corporate Finance and Dowgate Capital Advisors with €32.16m and €12.54m respectively.

The Experian data also revealed that 3pc of all European deals announced in Q2 2009 had an Irish element.