A report on merger-and-acquisition (M&A) activity in the Irish market in the first half of 2024 shows a 20% drop in the number of deals compared with the same period last year.

The value of those deals, however, more than trebled to €17.8 billion, mainly due to some large deals in the technology sector.

William Fry’s half-year report shows that there were 185 deals in the first six months of 2024 – down 20% compared with a year earlier.

‘Uncertain’ climate

William Fry partner Stephen Keogh said that the drop partly reflected the economic environment globally and in Ireland, with analysts becoming more cautious about growth.

“Deal-makers also appear more reluctant to commit to transactions in the current uncertain political climate, with elections across Europe and the US, and Ireland itself due to go to the polls by March 2025,” he stated.

Keogh added, however, that the increase in the value of deals demonstrated “remarkable resilience, proving that both corporates and their private-equity peers are willing to go the extra mile for the right asset”.

Joint venture

The biggest deal in the period was buy-out firm Apollo Global Management's agreement to pay €10.1 billion to acquire a 49% stake from chip-maker Intel in a joint-venture entity related to Fab 34, Intel’s high-volume chip manufacturing facility based in Leixlip.

The other deal which climbed above €1 billion saw the Swedish private-equity investor EQT swoop for Dublin-based gaming firm Keywords Studios.

The overall value figure was lifted by eight transactions that were worth more than €250 million. These included the Department of Finance’s latest disposal of shares in AIB.

Overseas bidders

William Fry points out, however, that mid-market deals worth between €5 million and €250 million accounted for 84% of transactions in the first half of 2024.

A breakdown shows that well over half of all Irish deals in the period involved overseas bidders – including traditional powerhouses such as the US and Britain, as well as Sweden, whose businesses transacted two of the top 15 deals of the year so far.

Private equity accounted for 19% of all deals, with volume falling by 19%. The value figure, however, jumped by almost 600%, mainly due to the Apollo-Intel deal.