Big deals lift value of M&A in first half
Figures from law firm William Fry show that there was a 17% drop in the number of mergers and acquisitions (M&A) in Ireland in the first half of this year – but the value of those deals almost tripled.
The firm’s report shows that there were 237 deals reported in the six-month period – down from 287 in the same period last year.
The value of these deals, however, jumped to €33.2 billion from €11.4 billion a year earlier, helped by some large-scale transactions and continued international investor interest.
Intel records biggest buy
Seven transactions of more than €1 billion were announced during the first half, led by Intel’s €12.3 billion acquisition of full ownership of Fab 34 from Apollo Global Management.
William Fry, however, described mid-market activity as “the foundation” of Irish M&A, with 82% of announced deals valued between €5 million and €250 million.
“While geopolitical tensions and macroeconomic uncertainty have prompted greater caution globally, Ireland has continued to attract significant strategic investment, with major international transactions driving deal values to almost three times last year’s level,” said William Fry partner Andrew McIntyre (head of corporate and M&A).
Mid-market ‘cornerstone’
He added that it was encouraging that the performance had not been driven solely by a handful of large transactions.
“Mid-market activity remains the cornerstone of the Irish market, while international investors continue to see long-term value across sectors including technology, financial services, energy, and infrastructure.
“That breadth of activity reflects the underlying strength of the Irish economy and the quality of businesses operating here,” he stated.
After the Intel deal, the second-largest transaction was Dubai Aerospace Enterprise’s €5.9 billion acquisition of Macquarie AirFinance, continuing consolidation within Ireland’s aircraft-leasing sector.
TMT top sector
The third-largest transaction took place in the technology, media, and telecommunications (TMT) sector, with Swedish industrial-technology company Hexagon completing the spin-off of its Irish-headquartered software businesses into a new entity, Octave, valued at €3.9 billion.
The William Fry report shows that TMT was the largest sector by value in the six months, accounting for 60% of the total, led by a small number of “transformational” transactions.
Business services was the most active sector by deal volume, with 50 transactions announced, representing 21% of all Irish M&A activity in the period.
Overseas bidders
There were 145 Irish companies or assets that attracted overseas bidders during the first half of the year, accounting for €31.6 billion in deal value.
Around 61% of all Irish M&A transactions involved overseas bidders, while all but one of the 20 largest transactions were inbound cross-border deals.
British-based buyers remained the most active by volume, announcing 48 deals, followed closely by US buyers with 40.
Private equity remained an important contributor to Irish M&A activity, although the William Fry report shows that investment volumes moderated compared with the previous year.
Private-equity investors announced 41 transactions involving Irish companies during the first half of the year, compared with 64 in the same period a year earlier.
The law firm said that the slowdown reflected broader caution across global M&A markets, together with tougher conditions for exits and fund-raising.