Five-year high in the growth of early-stage M&A activity indicates strong positive outlook
Intralinks® Holdings, Inc. (NYSE: IL), a leading, global SaaS provider of content management and collaboration solutions, today announced the release of the Q2 2013 Intralinks Deal Flow Indicator(TM) (DFI), a unique gauge of future merger and acquisition (M&A) deals. The Q2 2013 DFI shows a 24% jump in quarter-over-quarter global early-stage M&A activity, representing the largest quarterly increase for five years, with consistently strong performance across all geographies and markets. Increases in deal activity in emerging markets were particularly strong, while Europe and North America also saw a return to healthy activity after a prolonged period of cautiousness by investors.
"The growth in global M&A activity signals a strong return in investor confidence levels," said Matt Porzio, vice president, M&A strategy and product marketing at Intralinks. "The second half of 2013 should see a high volume of announced M&A deals across most sectors, even in territories like Europe where there is still lingering economic uncertainty. After several mixed quarters, we're seeing signs of a recovery in the M&A market."
The Intralinks DFI tracks global sell-side mandates and deals reaching due diligence prior to public announcement, providing a leading indicator of global deal activity. The DFI is based on the company's insight into a significant percentage of early-stage M&A transactions. Highlights from the Q2 DFI include:
North AmericaSustained US economic recovery combined with stronger corporate performance helped drive a 25% increase in the DFI quarter-over-quarter (3% year-over-year). In addition, US companies increasingly aren't repatriating overseas profits, but are instead using those funds to buy foreign assets.
Europe, Middle East & Africa (EMEA)Despite a weak economic backdrop, the DFI shows a 19% quarter-over-quarter growth in EMEA (23% year-over-year). Driving this activity is a boom in divestitures, driven by foreign acquirers buying assets they perceive to be undervalued or with long-term growth potential.
Emerging MarketsThe DFI for Latin America grew by 35% quarter-over-quarter (13% year-over-year), while Asia Pacific grew 31% quarter-over-quarter (45% year-over-year). In both markets local buyers made up for a lack of activity from large foreign corporates.
Intralinks is a leading supplier of solutions for managing strategic transactions. Intralinks Dealspace(TM), the market leading virtual data room (VDR), gives M&A professionals a complete solution to run the full lifecycle of a deal. Intralinks Dealspace supports every step of the deal process, enabling deal teams to securely exchange data with buyers, sellers and advisors, helping speed strategic transactions such as mergers, acquisitions, divestitures, capital raises and corporate restructurings.