SS&C Intralinks Report Finds Leaks of Mergers and Acquisitions Deals Decreasing
Increased regulatory scrutiny and tighter controls credited with drop for the second consecutive year
WINDSOR, CT, November 6, 2019 (PR NEWSWIRE) – SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that 7.4% of worldwide mergers and acquisitions (M&A) deals in 2018 were leaked prior to being officially announced, down from 7.9% in 2017. The data analysis for the SS&C Intralinks 2019 M&A Leaks Report was conducted with the M&A Research Centre at the Cass Business School in London.
“Leaked deals historically have led to higher target valuations and takeover premiums,” said Todd Partridge, Vice President, Product Marketing & Strategy, SS&C Intralinks. “To combat this type of market abuse, financial regulators have become more vigilant in recent years, and their efforts are making a difference.”
Key findings include:
- The fall in the overall worldwide rate of deal leaks in 2018 was driven solely by the Asia-Pacific (APAC) region, where leaked deals declined by 2.9% since 2017. The rate of leaked deals increased by 0.5% in the Americas and increased by 0.4% in Europe, the Middle East and Africa (EMEA) for the same period.
- Despite the overall decrease in APAC, Hong Kong and Japan were among the top three countries for deals leaks in 2018 with 17% and 9.6% of all deals respectively.
- Leaked deals had significantly higher takeover premiums in 2018 (50.9%) compared to non-leaked deals (20.2%). The difference in the median takeover premium for leaked deals compared to non-leaked deals in 2018 was $68.1 million.
- On average, leaked deals in 2018 were completed 7% quicker than deals that were not leaked.
- The Technology, Media and Telecoms (TMT) sector saw the highest rate of deal leaks in 2018 at 10.1%, followed by the Retail sector (9.8%) and the Materials sector (8%).
- Previous research from Cass Business School and SS&C Intralinks suggest that most leaks are deliberate and made by people with knowledge of deal discussions, rather than through accidental disclosure.
The report sourced M&A transaction data for 8,417 announced deals between January 1, 2009 and December 31, 2018. For more detailed information about the report, click here.
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 earned the trust and business of more than 99 percent of the Fortune 1000 and has executed over US$34.7 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.