Intralinks Deal Flow Indicator projects a 16 percent year-on-year increase in global deal activity
Intralinks® Holdings, Inc. (NYSE: IL), a leading, global SaaS provider of content management and collaboration solutions, announced today the release of the latest Intralinks Deal Flow Indicator TM (DFI), a unique predictor of future mergers and acquisitions (M&A) activity. Intralinks is also detailing results from a separate global survey they conducted that gauged sentiment on the future of the global M&A market.
The Intralinks DFI forecasts changes in the volume of global M&A deals that are expected to be announced in the next six months, or through the third quarter of 2014. The latest data, compiled through the end of March 2014, shows a 16 percent increase in year-on-year (YoY) early-stage global M&A activity, with particularly strong performance in Europe, Middle East and Africa (EMEA) and Asia Pacific. Overall, this quarter’s Intralinks DFI points to sustained momentum in M&A activity in 2014,building on the strong levels of M&A activity seen in 2013.
“Global M&A markets are healthy, exhibiting high levels of activity and continued optimism among dealmakers,” said Matt Porzio, vice president of M&A strategy and product marketing at Intralinks. “Many factors are driving a highly competitive market, including a good lending environment and the fact that corporations and private equity need to put their money to work and buy growth. Deal volumes across the value chain are up and we expect to see more high profile deal announcements through 2014, especially in hot sectors like technology, telecommunication, media and entertainment and consumer products.”
Intralinks Deal Flow Indicator Highlights – Outlook for Q3 2014
The Intralinks DFI tracks global M&A sell-side mandates and deals reaching due diligence prior to public announcement, providing a predictor of future global M&A activity levels. The Intralinks 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 predictor of future changes in the number of announced M&A transactions, with percentage changes in the Intralinks DFI typically being reflected in announced deal volumes approximately six months later. Highlights from the latest Intralinks DFI include:
The level of North American early-stage M&A activity grew 11 percent YoY, sustaining some of the momentum in this market from 2013. While deal volume was down 6 percent quarter-on-quarter (QoQ), this is largely a seasonal effect and the US market remains strong.
Europe, Middle East and Africa (EMEA)
Europe continues to perform strongly and consistently, with a 21 percent YoY increase, paired with a 5 percent increase QoQ. Regional instability and concerns about the crisis in Ukraine are not dampening enthusiasm and are not expected to impact M&A activity, according to our Global Sentiment Survey, which is described in greater detail below.
Latin America deal volume increased 13 percent YoY, but was down 10 percent QoQ. In our Global Sentiment Survey, dealmakers in the region expressed reduced optimism about prospects for the second half of 2014. In contrast, deal activity levels in the Asia Pacific region jumped 18 percent YoY and 10 percent QoQ with no indications that the decelerating Chinese economy is impacting dealmaking.
Global Sentiment Survey
In March 2014, Intralinks conducted a survey of more than 1,000 global M&A professionals to gauge dealmakers’ sentiments and views on the M&A market. Highlights of the survey include:
- Overall, 63 percent of M&A professionals are optimistic about the current deal environment, consistent with reported sentiment from the last quarter
- 73 percent predict M&A activity will increase over the next six months, consistent with last quarter and with the Intralinks DFI data
- North American respondents expressed the most optimism about future deal activity in 2014, with 70 percent expecting an increase. Latin America showed the most pessimism, with only 47 percent expecting increased deal activity through the remainder of the year.
Our survey showed that dealmakers have some emerging doubts regarding deal valuation, which survey respondents all agreed was the greatest impediment to getting deals done. German survey respondent expressed concerns about the impact of rising energy costs on manufacturing, with53 percent of them citing this concern as a reason they consider Germany a less attractive M&A target for international investors. In addition, 63 percent of respondents in the UK stated that they expect the passage of the Scottish independence referendum would have a negative impact on M&A activity.
About Intralinks Dealspace™
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 manage 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 visithttp://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 Intralinks 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 due 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’ VDR 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 Intralinks’ 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, 2013.
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