The Q3 2013 DFI predicts changes in the volume of global M&A deals that will be announced in early 2014.
The Q3 2013 DFI shows an 18 percent increase in year-over-year early-stage global M&A activity, with particularly strong performance in Europe, Middle East and Africa (EMEA) and Latin America. With overall deal flow only slightly below the very high level seen in the previous report, indications are that there is a sustained recovery underway in the global M&A market.
“We expect the growth in global M&A activity to continue unabated into 2014,” said Matt Porzio, vice president, M&A strategy and product marketing at Intralinks. “The DFI data indicates year-over-year growth in all geographies, with EMEA showing a dramatic 35 percent rise in deal activity, spurred by a strong performance across Europe. We usually see a seasonal dip in M&A activity in the third quarter data, but 2013 is proving to be a year of sustained growth, and 2014 looks set for a strong start.”
In September 2013, Intralinks conducted a separate survey of 2,400 global M&A professionals in which 67 percent of buy-side professionals and 75 percent of sell-side professionals reported expecting overall M&A deal volumes to increase over the next 12 months, reinforcing the view that global M&A markets will continue to be very active.
Deal Flow Indicator Highlights
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 Intralinks’ insight into a significant percentage of early-stage M&A transactions. Independent research shows that the Intralinks DFI is a reliable indicator of future M&A activity about six month before deals are announced. Highlights from the Q3 2013 Intralinks DFI include:
Despite some political and economic uncertainty in the US, North America showed a 7 percent year-over-year increase in M&A activity. The quarter-over-quarter decrease of 8 percent followed an exceptionally strong previous quarter. The spate of large, international deals in Q3 will likely continue through the rest of this year, driven by continued activity in the US. While an ongoing US budget impasse will likely not suppress M&A activity, a failure by the US Congress to approve raising the debt ceiling would likely have profound negative consequences for global deal activity.
Europe, Middle East and Africa (EMEA)
Europe drove a spectacular 35 percent jump in EMEA year-over-year deal activity, with quarter-over-quarter growth up 1 percent even following a strong previous quarter. All regions of EMEA showed double digit year-over-year gains, with particularly strong contributions from Germany, France, Benelux and Spain.
Latin America deal volume grew by 21 percent year-over-year (and a 2 percent quarter-over-quarter increase), while Asia Pacific grew 9 percent year-over-year (down 3 percent quarter-over-quarter). In both markets local deal activity more than made up for a lower levels of activity from large foreign corporates.
Intralinks is a leading supplier of solutions for managing strategic transactions. Intralinks Dealspace®, 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.
For more information about the Intralinks DFI, please visit http://www.intralinks.com/knowledge/intralinks-deal-flow-indicator.
About the Intralinks Deal Flow Indicator
The Intralinks Deal Flow Indicator provides Intralinks’ perspective on the level of M&A due diligence activity taking place during any given period of time. The statistics contained in the DFI represent the volume of virtual data rooms opened, or proposed to be opened, through Intralinks or other providers for the purpose of conducting due diligence on proposed transactions including asset sales, divestitures, private placements, financings, capital raises, joint ventures and partnerships. These statistics are not adjusted for changes in Intralinks’ share of the virtual data room market or changes in market demand for virtual data room services. These statistics may not correlate to the volume of completed transactions that may be reported by market data providers and should not be construed to represent the volume of transactions that will ultimately be consummated during any period of time. Indications of future completed deal activity derived from the DFI are based on assumed rates of deals going from diligence stage to completion. In addition, the statistics provided by market data providers may be compiled with a different set of transaction types than those set forth above.
THIS PRESS RELEASE AND THE DEAL FLOW INDICATOR (COLLECTIVELY “THE MATERIALS”) ARE PROVIDED “AS IS” FOR INFORMATIONAL PURPOSES ONLY. INTRALINKS MAKES NO GUARANTEE, REPRESENTATION OR WARRANTY OF ANY KIND REGARDING THE TIMELINESS, ACCURACY OR COMPLETENESS OF THE CONTENT OF THE MATERIALS. THESE MATERIALS ARE BASED ON INTRALINKS’ OBSERVATIONS AND SUBJECTIVE INTERPRETATIONS OF DUE DILIGENCE ACTIVITY TAKING PLACE, OR PROPOSED TO TAKE PLACE, ON INTRALINKS’ OR OTHER PROVIDERS’ VIRTUAL DATA ROOM PLATFORMS FOR A LIMITED SET OF TRANSACTION TYPES. THESE MATERIALS ARE NOT INTENDED TO BE AN INDICATOR OF INTRALINKS’ BUSINESS PERFORMANCE OR OPERATING RESULTS FOR ANY PRIOR, CURRENT OR FUTURE PERIOD, NOR ARE THESE MATERIALS INTENDED TO PROMISE, GUARANTEE OR ASSURE FUTURE LEVELS OF COMPLETED DEAL ACTIVITY. THESE MATERIALS ARE NOT INTENDED TO CONVEY INVESTMENT ADVICE OR SOLICIT INVESTMENTS OF ANY KIND WHATSOEVER.
THE INTRALINKS DEAL FLOW INDICATOR MAY BE USED SOLELY FOR PERSONAL, NON-COMMERCIAL USE. THE CONTENTS OF THE INTRALINKS DFI MAY NOT BE REPRODUCED, DISTRIBUTED OR PUBLISHED WITHOUT THE EXPRESS WRITTEN PERMISSION OF INTRALINKS. FOR PERMISSION TO REPUBLISH DEAL FLOW INDICATOR CONTENT, PLEASE CONTACT INFO@INTRALINKS.COM.
Forward Looking Statements
The forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are express or implied statements that are not based on historical information and include, among other things, statements concerning Intralinks’ plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from those contemplated in these forward-looking statements. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof. As such, Intralinks undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For a detailed list of the factors and risks that could affect Intralinks’ financial results, please refer to Intralinks public filings with the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K for the year-ended December 31, 2012 and subsequent quarterly reports.
Trademarks and Copyright
“Intralinks” and Intralinks’ stylized logo are the registered trademarks of Intralinks, Inc. This press release may also refer to trade names and trademarks of other organizations without reference to their status as registered trademarks. © 2013 Intralinks, Inc. All rights reserved.
Intralinks Holdings, Inc.