Issue 2 2019

Acquisition International - Issue 2 2019 61 Number and Aggregate Value (mil USD) of Support Services Deals Globally: 2006- 2019 YTD (as at 31st January 2019) Deal yearly value (Announced date) Number of deals Aggregate deal value (mil $) H1 2019 458 25,068 H2 2018 3,607 209,697 H1 2018 4,194 235,714 H2 2017 4,117 165,707 H1 2017 4,045 157,727 H2 2016 3,848 177,957 H1 2016 4,052 204,656 H2 2015 4,468 186,246 H1 2015 4,581 181,058 H2 2014 4,248 139,650 H1 2014 3,919 127,969 H2 2013 3,598 92,586 H1 2013 2,999 79,116 H2 2012 2,822 100,347 H1 2012 2,546 71,981 H2 2011 2,193 84,621 H1 2011 1,873 79,423 H2 2010 1,677 76,709 H1 2010 1,632 67,323 H2 2009 1,353 98,293 H1 2009 1,095 39,401 World region (target) 2015 2016 2017 2018 2019 Far East and Central Asia 91,936 80,465 91,651 122,724 9,016 Western Europe 75,994 58,859 70,083 80,619 8,622 North America 162,994 183,271 121,811 190,805 7,768 South and Central America 25,790 30,675 14,580 35,249 393 Middle East 2,090 14,482 3,610 4,315 147 Oceania 11,191 6,118 13,726 8,456 84 Eastern Europe 1,409 5,275 3,208 1,055 49 Africa 368 3,882 4,692 1,945 24 Aggregate Value (mil USD) of Support Services Deals Globally: 2006-2019 YTD (as at 31st January 2019) Bureau van Dijk 2018 was a big year in terms of dealmaking in the healthcare industry, according to Zephyr, the M&A database published by Bureau van Dijk. Although the 2,054 deals announced represents a decline in volume on 2017’s 2,223, value actually increased over the 12 months, climbing 30 per cent from USD 50,581 million to USD 65,982 million. As is often the case, 2019 has kicked off at a more leisurely pace, with 128 deals worth a combined USD 2,417 million targeting the healthcare sector announced in the opening month of the year. Value was suppressed somewhat by the lack of a very sizeable transaction; January’s most valuable was worth USD 610 million and took the form of an acquisition of Verity Health System of California Inc.’s 4 hospitals by KPC Group. No other deal was worth in excess of USD 500 million; second place saw Bangkok Dusit Medical Services agreeing to sell a 38 per cent stake in Ramkhamhaeng Hospital to Cypress Consolidated Healthcare, F&S 79, Synphaet and Vibhavadi Medical Center. Although January has undoubtedly been a quiet month, it is not the slowest of the last year, having surpassed September 2018 (USD 2,215 million) and February 2018 (USD 1,832 million). However, it has proven to be less active than the corresponding timeframe last year; in January 2018, there were 167 deals worth an aggregate USD 4,791 million. North America attracted a large portion of the sector’s dealmaking activity in January, with companies in the region having been targeted in 73 deals worth USD 1,110 million. In terms of value, this placed it ahead of the Far East and Central Asia (USD 699 million) and Western Europe (USD 592 million), while by volume, Western Europe placed second with 32 deals and the Far East and Central Asia came next with 15. Given these points, it would not be unreasonable to expect an upturn in dealmaking in the healthcare sector over the coming months as the year gets into full swing. Whether 2019 will be able to keep pace with the fairly high levels of activity witnessed in 2018 remains to be seen. Healthcare Number and Aggregate Value (mil USD) of Support Services Deals Globally by Target Sector: 2006-2019 YTD (as at 31st January 2019) Number and Aggregate Value (mil $) of M&A Deals Globally: 2006-2018 (as at 31 December 2018) Deal yearly value (Announced date) Number of deals Aggregate deal value (m $) 2019 754 25,068 2018 12,121 445,411 2017 12,887 323,435 2016 12,460 382,613 2015 13,672 367,303 2014 12,632 267,619 2013 9,796 171,703 Major sector (target) Number of deals Aggregate deal value Computer, IT and Internet services 54,144 1,833,710 Mining & Extraction 4,836 630,518 Transport, Freight, Storage & Travel Services 9,025 624,860 Personal, Leisure & Business Services 8,934 610,099 Banking, Insurance & Financial Ser- vices 2,186 145,128 Wholesaling 1,314 122,268 Chemicals, Petro- leum, Rubber & Plastic 416 102,385 Retailing 869 89,197 Industrial, Electric & Electronic Ma- chinery 1,304 85,970 Utilities 659 78,238 Communications 517 63,100 Property Services 406 50,430 Public Administra- tion, Education, Health Social Services 766 47,807 Hotels and Restau- rants 586 42,388 Construction 415 28,418 Agriculture, Horti- culture & Livestock 434 24,971