SS&C Intralinks Predicts M&A Slows in Q2 2022; Overall Volumes Keep Pace with Previous Year
WINDSOR, CT, April 7, 2022 (PR NEWSWIRE) – SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced results from the Q2 2022 SS&C Intralinks Deal Flow Predictor, a quarterly publication of future mergers and acquisitions (M&A) announcements.
"Omicron, inflation and supply-chain woes converged in Q4 2021 to limit M&A volume that had seen a series of consecutive record dealmaking quarters,” said Bob Petrocchi, Co-Head, SS&C Intralinks. “From our vantage point, the markets are still healthy, and global M&A announced volume will keep pace with this period last year. However, for Q2 2022, we forecast M&A volume declines in quarter-over-quarter activity in all regions except Europe, the Middle East and Africa, based on our insights into pre-announced activity.”
While the impact of the situation in Eastern Europe is being calculated from an economic standpoint, global deal flow is holding steady as M&A deal makers are factoring in geo-politically induced volatility.
Regional market forecasts for Q2 2022 M&A activity:
- Asia Pacific will underperform against Q1 2022, with announced deal volume forecast to decline by less than 5 percent while remaining flat compared to the same period in 2021.
- Europe, the Middle East and Africa are forecast to remain flat against Q1. However, the region’s announced volume is expected to show growth of between 5 and 10 percent compared to Q2 2021. Though the data analysis was conducted before the Russian Federation invaded Ukraine, from a total regional perspective in Europe, issues such as inflation and supply-chain challenges are currently outweighing any concerns related to the invasion.
- Latin America is forecast to underperform against the previous quarter, declining less than 5 percent and remaining flat against this period last year.
- North America’s announced volume is expected to increase by 5 to 10 percent against the same quarter last year. Still, it is also forecast to decrease 5 percent compared to the previous quarter, ending multiple record dealmaking quarters.
The SS&C Intralinks Deal Flow Predictor forecasts the number of future M&A announcements by tracking early-stage M&A activity from the previous four quarters, defined as new sell-side M&A transactions that are in preparation or have begun their due diligence stage. On average, early-stage deals are six months away from public announcement.
SS&C Intralinks is a pioneer of the virtual data room, enabling and securing the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed USD 35 trillion worth of financial transactions on its platform.
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.