A total of 169 M&A deals through 2020  are listed in the William Fry M&A Review 2020, with a total value of €9.1 billion, 121 of which were inbound deals amounting to €8.8 billion.

Activity was far from even in a turbulent year, says the law firm's report, and the final quarter of the year registered €5.3 billion in activity, more than the previous three quarters combined.

Head of corporate/M&A Stephen Keogh (pictured) commented: “Despite the volatile economic climate in 2020, the Irish M&A market’s performance was very strong, matching 2019 deal activity by volume and exceeding it by value by 14%.  

“These figures are even more impressive when you compare them internationally. In contrast to Ireland, overall European deal volume fell 17% over the same period, and value ticked up by a modest 3% to €739.4 billion."

Some of the key findings in the review are:

In Association with

• Total inbound volume reached a new record of 121 deals worth €8.8 billion
• Deal value rose 14% to €9.1 billion despite caution around the Covid-19 pandemic
• Q4 registered €5.3 billion in activity, more than Q1 to Q3 combined
• Private equity activity jumped significantly by value and volume, with 56 deals worth €5.2 billion
• There were 11 deals worth €250m or more, compared to only four in 2019 and 2018
• A total of 60 mid-market deals (€5m-€250m) were announced (85% of all deals)
• The technology, media, and telecoms (TMT) sector accounted for 25% of total volume across several key sectors.

The latter sector continued to attract the lion’s share both in terms of volume and value, accounting for 25% of total volume and 22% of value, while attracting three of the top ten deals of the year. 

The largest TMT deal of the year was CK Hutchison’s €600m proposed sale of mobile operator Three Ireland to telco infrastructure firm Cellnex. 

Activity within the health and life sciences sector also resulted in a series of high-profile deals in 2020. A total of €1.3 billion in deals was announced in the sector – more than seven times the total in 2019. 

The largest transaction of the sector in 2020 was Swiss pharma firm Roche’s €380m acquisition of biotech startup Inflazome. The spotlight has been turned on the sector following the outbreak of Covid-19, as companies urgently look to develop efficient testing and effective treatments for the virus.

The upper end of the market was a highlight, with 11 deals worth €250m or more announced, worth a combined value of €6.3 billion. Much of the activity at the top end of the market took place in the second half of 2020, after dealmakers had had a chance to come to terms with the effects of the Covid-19 pandemic. The top five deals of the year were all announced in the second half.

Inbound Transactions

All the top 20 deals of the year were inbound cross-border transactions. The 121 inbound transactions were worth €8.8 billion, a 6% rise in volume and a 16% rise in value on the previous year. 

UK and US buyers were most active, carrying out 47 and 38 deals in the first ten months of the year, respectively. Both countries recorded an uptick in activity compared to 2019, despite the challenges of the pandemic.

Private equity activity was notable. A total of 56 PE transactions were announced in 2020, 47% more than in 2019, while value rose 105% to €5.2 billion. Thirteen of the top 20 deals of the year had PE involvement, and outperformed that of Europe, which fell by 10% in volume terms to 1,973 deals, while value rose by a more modest 26% to €299 billion.

Looking to the year ahead, Keogh stated: “As dealmakers plan for 2021, there are signs that the era of extreme uncertainty is drawing to a much-needed close. Several positive indicators are behind this renewed sense of optimism: the commencement of vaccine rollouts was a crucial achievement in the long battle against the virus, and Joe Biden’s US electoral victory is expected to bring greater stability to global markets.

"Moreover, the long-awaited agreement on the terms of the UK’s exit from the EU (limited though they are) is sure to bring a renewed sense of certainty. All in all, it seems like there are solid grounds for optimism as we survey the Irish M&A market in 2021.

“Despite certain challenges on the horizon, there is every reason to believe that 2021 will be a year of regained certainty, particularly in the second half of the year. The gradual global economic recovery from the Covid-19 crisis, coupled with greater geopolitical stability in the form of the UK-EU trade deal, will provide the backdrop for a more confident Irish M&A market in 2021,” Keogh added.