The volume of activity in the Irish mergers and acquisitions market increased slightly year-on-year in the first half of 2025, but the value of deals declined by 51 per cent from the same period last year.
The William Fry Half-Year M&A Review report shows there were 236 deals announced in the first half, up four per cent from H1 2025, as value dropped to €8.8bn in part due to a slowdown in large-cap and transformational transactions.
The law firm said the growth in deal volume signalled a continued appetite for strategic acquisitions and investments in the Irish market.
The report found that mid-market size deals dominate, accounting for 88 per cent of the value of disclosed deals worth between €5m and €250m.
The five transformations deals worth €500m or more matched the number agreed in the first half of 2024.
The largest deal of the period was the €1.9bn acquisition of Nordic Aviation Capital A/S by Dubai Aerospace Enterprise Ltd, a subsidiary of the Investment Corporation of Dubai (ICD), highlighting the continued importance of the global aviation leasing sector.
The other significant large-cap deals spanned the financial services, pharmaceuticals, energy, and technology, media and telecommunications sectors.
Nearly two-thirds (63 per cent) of Irish deals involved overseas bidders, up from 57 per cent a year ago. A total of 148 inward investment transactions were announced, including 83 in Q1, the highest quarterly total for five years.
The UK remained the most active acquirer with 58 deals, followed by the US with 41, up from 24 a year earlier, and there were buyers from Japan, Canada, China and India as well as EU countries such as France, Sweden, the Netherlands and Germany.
Private equity accounted for 24 per cent of Irish deals, with deal volume up 39 per cent year-on-year. However, aggregate value of those deals fell 71 per cent from €14.6bn to €4.2bn following Apollo's investment in Intel's Fab34 facility last year.
The first quarter was particularly strong, with 138 deals worth a combined €6.3bn, representing 30 per cent growth in volume and 48 per cent in value compared to Q1 last year.
“Irish M&A activity remains resilient despite global challenges, with a modest increase in deal volume in H1 2025. While deal values moderated due to fewer large transactions, the data highlights the strength of Irish assets," said Andrew McIntyre, head of corporate and M&A at William Fry.
"International interest is strong, and private equity is showing renewed momentum in the mid-market. Overall, these trends suggest Ireland is well-positioned for continued dealmaking in H2.”
In terms of deal value, financial services led the way, accounting for 37 per cent. Larger deals included the DAE bid for Nordic Aviation Capital as well as AIB's repurchase of €1.2bn in shares from the state.
By volume, business services led the market with 23% of all H1 deals, followed by TMT at 22%. Notable TMT transactions included Wolters Kluwer’s €425m acquisition of Shine Analytics, TA Associates’ €414m purchase of Clanwilliam Group, and a €121m funding round for Tines Security, now Ireland’s latest unicorn.
The pharmaceuticals, medical and biotech sector represented 25% of total deal value, with key deals from both strategics and sponsors.
Highlights included Investindustrial’s €1.2bn acquisition of DCC Healthcare, Advent International’s €153m investment in Felix Pharmaceuticals, and Merck’s acquisition of Irish manufacturing facilities from WuXi Biologics.
“Looking ahead, there's cautious optimism for Irish M&A, supported by projected GDP growth, ECB rate cuts, and momentum in key sectors like renewables and digital transformation," said McIntyre.
"Ireland’s new FDI screening regime has had minimal impact so far on inbound M&A. However, geopolitical risks - especially in the Middle East, Eastern Europe, and the US -remain elevated.”
(Pic: Getty Images)
