The value of the Irish mergers and acquisitions market increased 115% to €27.5bn last year as due to a number of major deals closed by international acquirers.
A total of 499 M&A deals were concluded in 2024, up 1% year-on-year, according to William Fry's annual M&A Review.
The vast majority of transactions were categorised as mid-market, with 89% of deals reported to be worth between €5m and €250m.
International acquirers were involved in the majority of the top 20 deals, and 17 deals in all were valued at €250m or more.
The largest deal of the year was the Fab 34 transaction, where private equity group Apollo paid Intel €10.1bn for a 49% stake in a joint venture related to the technology giant’s manufacturing facility in Leixlip, Co. Kildare.
The second-largest deal of the year saw saw Avolon Holdings acquire Castlelake Aviation for €4.1bn. The third largest deal saw a consortium of investors pay €2.5bn for Keyworth Studios, a gaming company that helped develop games such as Fortnite and Call of Duty.
Private equity retained a strong market presence, taking part in 84 deals. In value terms, however, private equity investment in Irish companies soared 523% to €16.4bn, thanks in part to the Fab 34 transaction, which had a distorting effect on the market.
Eight of the 20 largest M&A transactions last year involved a private equity investor in one form or another, and the sector accounted for five buyouts and three exits. William Fry said that the bigger picture demonstrates that international private equity firms continue to see Ireland as an attractive market for deal-making.
More than a fifth (22%) of deals were agreed in the technology, media and telecoms sector, which accounted for 111 deals and three of the five largest deals. The sector also accounted for 53% of total value although, again, the Fab 34's influence was outsized.
In deal value terms, financial services finished 2024 in second place, accounting for 21% of the total market, reflecting the €4.1bn Castlelake Aviation deal and two large transactions at AIB where the Irish government continued to sell down the State's stake in the bank.
In other areas, business-to-business continues to generate strong M&A activity accounting for 15% of dealmaking during 2024, consistent with 2023.
The year’s business service transactions included the €791m stake acquisition of Echelon Data Centres by Starwood Capital Group Management and a host of smaller deals.
“Despite a year marked by global political and economic uncertainty, Ireland's Mergers & Acquisitions (M&A) market demonstrated remarkable resilience, experiencing an almost unprecedented surge in value," said Andrew McIntyre, head of corporate/M&A at William Fry.
"We performed strongly, aligning with global trends where dealmakers proceeded cautiously yet remained focused on long-term objectives. As expected, the majority of M&A activity occurred in the mid-market, though we also saw a notable increase in high-value transactions, which is a welcome development. Looking ahead, this continued strength in the M&A sector positions Ireland well for future growth and opportunity."
William Fry is cautiously optimistic about the outlook for M&A both in Ireland and internationally, citing pent-up demand as well as a clearer political and economic picture.
“Still we should remain cautious, with a geopolitical environment fraught with risk. Closer to home we await with interest to the extent to which Ireland's new FDI rules will impact inbound M&A deals," said McIntyre.
“Given the more stable political environment here in Ireland, the potential in the renewables sector, the ongoing strength of the TMT market and the consolidation in areas such as business services, there is genuine optimism for a further uplift in Irish dealmaking in 2025.”
(Pic: MIGUEL RIOPA/AFP via Getty Images)
