Experian®, the global information services company, today released its latest mergers and acquisitions (M&A) and equity capital market (ECM - flotation, rights issue and placements) data covering Q2 2010.

UK Mergers and Acquisitions Fall in Q2 2010, According to Experian  

Nottingham, 01 July 2010 — Experian®, the global information services company, today released its latest mergers and acquisitions (M&A) and equity capital market (ECM - flotation, rights issue and placements) data covering Q2 2010.

UK Highlights

  • The UK saw a 15.5 per cent decrease in the number of UK M&A and ECM transactions announced during Q2 2010 compared to Q1 2010 (from 1,121 deals to 947 deals).
  • £46.2billion worth of transactions were announced in the UK in Q2 2010, down by 8.7per cent on Q1 2010.
  • Cenkos Securities was the best performing financial advisor by volume with 15 deals and Morgan Stanley worked on the highest value of deals worth a total of just under £15billion.
  • DLA Piper advised on the highest number of transactions (18) in Q2 2010, while the leading legal advisor by value was Herbert Smith with deals worth a total of £13.3billion.

In comparison to Europe

  • Europe saw a 17.5per cent decrease in European M&A and ECM transactions announced during Q2 2010 with only 2,375 deals compared to 2,879 transactions in Q1 2010.
  • €148.7billion worth of transactions were announced in Europe in Q2 2010, down by
  • 16.1per cent on the €177.3billion recorded in Q1 2010.

Wendy Smith, Business Development Manager at Experian Corpfin, said: “The wait for the upturn in corporate finance activity continues, with our research showing a further decline in the overall deal activity across the UK and Europe.  With the exception of the Midlands and Northern Ireland, each region has undergone a decline in activity, continuing the overall downward annual trend.  Again, the stagnation of deal flow in Q1 is principally a result of a lack of funding. 

“This situation has not been helped by the customary uncertainty leading up to the General Election, although the steps taken by the new government may provide some much-needed confidence.”

UK deal sizes

Large deals (£100million* +)

  • A total of 67 M&A and ECM deals each with a consideration of over £100million* were recorded in Q2 2010, an 11.8per cent decrease compared to the Q1 2010 figure of 76 large deals announced. Q2 2009 saw a total of 79 large transactions announced, which represents a decrease for Q2 2010 of 15.2per cent.
  • The deal values of large transactions have decreased to £40.585billion, down by 7.9per cent in comparison to £44.046billion announced in Q1 2010 and down by 31.4per cent in comparison to £59.2billion recorded in Q2 2009.

Mid-cap deals (£10-£100million*)

  • In the mid-cap range both deal volumes and values decreased in Q2 2010 compared to Q1 2010. A total of 148 transactions worth £4.9billion represented a 17.8per cent and 14.8per cent decrease respectively in volume and value terms on the 180 deals valued at £5.7billion recorded in the previous quarter.
  • The Q2 2010 volume and value figures were also down on Q2 2009, when 167 transactions worth £5.8billion were recorded.

Small-cap deals (under £10million*)

  • Small deals accounted for 238 announced transactions and a deal value of £773.4million in Q2 2010 in contrast to Q1 2010s 296 deals worth £882.2million.
  • A total of 283 small deals accounting for £802.6million were announced in Q2 2009.

Table 1: Comparison of regional deal activity

Region

Volume of deals announced

Value of deals announced (£m)

 

Q2 2010

Q1 2010

Q2 2010

Q1 2010

Greater London

280

373

£31,520

£23,019

South East

115

137

£4,166

£15,018

South West

135

157

£5,653

£2,933

East Anglia

40

64

£445

£501

Midlands

124

115

£1,747

£1,106

Yorkshire

64

91

£1,890

£1,163

North West

119

138

£1,165

£3,964

North East

34

35

£115

£2,010

Wales

20

25

£125

£45

Scotland

76

116

£1,567

£4,792

Northern Ireland

10

8

£111

£27

Republic of Ireland

52

62

£6,623

£4,838

Table 2: Financial advisor deal activities Q2 2010

Deals announced by volume

Deals announced by value (£m)

DealsQ2 2010

Financial advisor

Rank Q1 2010

DealsQ2 2010

Financial advisor

Rank Q1 2010

15

CENKOS SECURITIES

6

14,986

MORGAN STANLEY

7

14

ROTHSCHILD

1

13,255

BANK OF AMERICA MERRILL LYNCH

-

13

BAKER TILLY

-

12,498

UBS INVESTMENT BANK

1

12

UBS INVESTMENT BANK

3

12,273

DEUTSCHE BANK AG

2

12

HAWKPOINT PARTNERS

-

11,611

JP MORGAN CHASE & CO

-

12

DELOITTE

5

8,893

CREDIT SUISSE

4

11

MORGAN STANLEY

-

4,667

GOLDMAN SACHS

9

11

CREDIT SUISSE

-

3,529

LAZARD

8

11

SEYMOUR PIERCE

-

3,247

JEFFERIES & CO

-

11

BREWIN DOLPHIN SECURITIES

10

3,108

BARCLAYS CAPITAL

-

Table 3: Legal advisor deal activities Q2 2010

Deals announced by volume

Deals announced by value (£m)

DealsQ2 2010

Legal advisor

Rank Q1 2010

DealsQ2 2010

Legal advisor

Rank Q1 2010

18

DLA PIPER

1

13,301

HERBERT SMITH

6

17

EVERSHEDS

4

10,327

ALLEN & OVERY

-

16

HERBERT SMITH

-

10,231

CLEARY GOTTLIEB STEEN & HAMILTON

4

15

NABARRO

-

7,969

SKADDEN ARPS SLATE MEAGHER & FLOM LLP

-

13

LINKLATERS

2

7,800

HOGAN LOVELLS

-

12

HALLIWELLS

-

6,240

LINKLATERS

10

11

ALLEN & OVERY

9

5,350

SLAUGHTER AND MAY

2

11

SLAUGHTER AND MAY

-

5,301

SIMPSON THACHER & BARTLETT

-

11

JONES DAY

-

4,103

SULLIVAN & CROMWELL LLP

-

11

PINSENT MASONS

3

3,989

VINSON & ELKINS

-

For a more detailed report, please visit: http://www.corpfinworldwide.com/web/MaAndIpo.jsp

ENDS

Contact:

Ms Serj Heera

0115 992 2773/07837 652169

serjeet.heera@uk.experian.com

Notes to editors

*Where consideration disclosed

Deal information is based on transactions announced between 1st April and 24th June 2010 for quarter two figures and 1st January and 31st March 2010 for quarter one figures. Target, bidder or parent of either party must be located in the region which is analysed in order to be included. The deal value of transactions covered in this report is £500,000 or above. Deal activity analysis referring to deal values is based on disclosed actual figures only.

About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.

For more information, visit http://www.experian.co.uk .

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil. 

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