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May witnessed increasing trend in M&A and PE
By siliconindia
Bangalore: April turned up to be a month of muffled activity for mergers and acquisitions and private equity investments. But we could see much more hovering of these activities in May.
According to VCCEdge, private equity and venture capital funds represents a 133 percent growth in deal value and a 40 percent increase in terms of deal volume compared to the same period last year. Private equity and venture capital funds has an active startup in this financial year and closed 45 deals worth $1.31 billion as compared to 32 deals worth $563 million during the same period last year. May recorded 43 deals worth $804 million.
But mergers and acquisitions did not turn up to be the same as last year. In the month of May, the deal value and volume dripped with 59 deals worth $4.1 billion as compared to 70 deals worth $7.05 billion during the same period in 2010, which represents a 42 percent fall in deal value and a 15.8 percent fall in volume. However, the deal value increased 45 percent in May as compared to April 2011. Many big deals, such as acquisition of business process outsourcing company Intelenet by U.K's Serco for $634 million (
2,850 crore), took place this calendar year.
In the month of May alone, 17 angel/venture capital deals worth $65 million transacted besides 28 private equity transactions worth $1.25 billion and is the highest amount of deal volume in the last six years. The increasing number of investments by the venture capitalists represents a healthier picture of return for the industry. The deal size has also considerably increased from $5 million to $14 million with average deal size nearly doubling from $20 million to $39 million during the period. With five deals over $100 million out of which four were of infrastructure segment, May became the platform to witness the largest deals of Morgan Stanley Infrastructure Partners putting $200 million in a joint venture with Isolux Corsan Concesiones to develop road projects. GMR Infrastructure's airport holding company raised $200 million form Standard Chartered PE, Jacob Ballas and JM Financial Old Lane Capital, which was another big deal of the month.
On the other hand, merger and acquisition deal volume was dominated by domestic deals while the outbound deals represent the maximum transaction value. Adani Group-owned Mundra Port and Special Economic Zone's $2 billion acquisition of Abbot Point Port in Australia tops the chart. The deal size increased from $20 million to $25 million as compared to last year and the average deal size saw a decline from $191 million in May 2010 to $137 million in May 2011.
2,850 crore), took place this calendar year.
In the month of May alone, 17 angel/venture capital deals worth $65 million transacted besides 28 private equity transactions worth $1.25 billion and is the highest amount of deal volume in the last six years. The increasing number of investments by the venture capitalists represents a healthier picture of return for the industry. The deal size has also considerably increased from $5 million to $14 million with average deal size nearly doubling from $20 million to $39 million during the period. With five deals over $100 million out of which four were of infrastructure segment, May became the platform to witness the largest deals of Morgan Stanley Infrastructure Partners putting $200 million in a joint venture with Isolux Corsan Concesiones to develop road projects. GMR Infrastructure's airport holding company raised $200 million form Standard Chartered PE, Jacob Ballas and JM Financial Old Lane Capital, which was another big deal of the month.
On the other hand, merger and acquisition deal volume was dominated by domestic deals while the outbound deals represent the maximum transaction value. Adani Group-owned Mundra Port and Special Economic Zone's $2 billion acquisition of Abbot Point Port in Australia tops the chart. The deal size increased from $20 million to $25 million as compared to last year and the average deal size saw a decline from $191 million in May 2010 to $137 million in May 2011.
