Irish Merger & Acquisition) activity and volume continued at near-record levels during the first four months of the year despite the economic challenges partially wrought by the war in Ukraine, according to data from EY.
A total of 60 deals worth a combined $3.3bn were tallied between January and April, with inbound investment from abroad accounting for 60% of deals and 70% of the total value.
The technology, media and telecom sectors made up nearly two-thirds (63%) of the value of Irish M&A deals during the first third of the year despite just a quarter (27%) of deals involving companies in that industry.
Notable deals include the acquisition of stock management fintech Global Shares by JP Morgan for $730m; and Partners Group becoming the majority shareholder in Version 1 for $867m, while Flipdish, Pradium, Tetra, and Wayflyer also attracted significant investment.
"There is no doubt that global investors are eyeing up Irish companies very closely as part of their core M&A strategic priorities," said Grit Young, EY Ireland valuations partner.
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"The attractiveness of Irish companies to international investors helps explain why Ireland continues to be one of the most sought after destinations for M&A activity in the wider EMEA region.
"But most of all, it comes down to the extraordinary talent, innovation, and robust business models built up by Irish companies over the years that have put Ireland centre stage on the M&A world map."
The trends seen in Ireland are broadly in line with those seen globally, with deal volume falling 24% in Ireland year-on-year, compared to drops of 42% in the UK and 23% in the EMEA region.
Compared to early 2020, the volume of Irish M&A activity has increased by 21%.
While TMT stood out, other sectors such as power & utilities and life sciences remained attractive to investors, with Mitsui's $630m investment in Mainstream Renewable Power accounting for 27% of total deal value in the first four months of 2022.
"The second half of this year should hold bountiful opportunities for Irish companies seeking opportunities in the M&A space," Young added.
"That said, these opportunities must be weighed against a more uncertain macro-economic backdrop resulting from inflation, the resurfacing of trade tensions, and geopolitical risks emanating from the war in Ukraine.
"These challenges might put the brakes on certain sectoral M&A activities. Ultimately, though Irish companies will likely remain firmly in the spotlight and top of the agenda for global M&A investors in the second half of the year."
(Pic: Getty Images)
