Issue 2 2020

56 Acquisition International - Issue 2 2020 2019 was a big year in terms of mergers and acquisitions (M&A) targeting companies in the support services sector. Although volume was down slightly on last year, the figure is still one of the largest on record, while value actually increased over the 12 months, according to Zephyr, the M&A database published by Bureau van Dijk. n all, there were 14,208 deals worth a combined USD 509,449 million targeting support services companies announced worldwide during 2019, compared to the USD 507,449 million injected across 14,461 deals over the preceding 12 months. Despite the year-on-year decline in volume, 2019 still proved to be the third- biggest year on record, behind 2018 and 2015’s 14,581 deals. The year fared even better by value, stacking up as the second- biggest year on record, behind only 2018 and ahead of 2016’s USD 389,403 million. Value for 2019 was boosted by a few particularly productive months; for instance, deals worth USD 93,082 million were announced in June, including four valued in excess of USD 10,000 million, followed by December’s USD 59,644 million and the USD 54,872 million injected in March. The largest deal targeting a provider of support services to have been announced during 2019 was worth USD 18,700 million and took the form of an acquisition as Blackstone picked up the US urban, infill logistics assets of GLP. This was followed by a USD 11,242 million capital increase in which Alibaba Group Holding issued stock equating to a stock of just over 2 per cent to undisclosed parties via a placing. Alibaba also featured in the third-placed deal as West Raptor Holdings sold a 3 per cent stake for USD 11,091 million. The identity of the acquiror was not revealed. The other deal which broke the USD 10,000 million-barrier featured a US target as IAC/ Interactive Corporation demerged Match Group to shareholders for USD 10,080 million. online tax free shopping platform operator Global Blue by Far Point Acquisition Corporation. Completion is expected to follow during the second quarter of this year. Five other deals targeting support services companies announced in 2020 to date have broken the USD 1,000 million-barrier and targeted the likes of Delivery Hero, Krishnapatnam Port and Armis. In conclusion, despite a decline on 2018’s result, 2019 was an impressive year for the support services sector. The fact that a number of sizeable deals have already been signed off in 2020 means there is plenty of cause for optimism as we move into February. However, it is too early to say whether similar levels of investment can be sustained into 2020. Company: Bureau van Dijk E-Mail: [email protected] Web: www.bvdinfo.com Support Services I “Completion is expected to follow during the second quarter of this year. Five other deals targeting support services companies announced in 2020 to date have broken the USD 1,000 million-barrier and targeted the likes of Delivery Hero, Krishnapatnam Port and Armis.” In terms of 2020, the year is off to a fairly good start as 677 deals worth an aggregate USD 29,688 million were announced in January. The largest of these is valued at USD 5,300 million and saw Visa sign on the dotted line to acquire US online financial software platform operator Plaid. This is worth more than double the second-placed deal – a USD 2,565 million acquisition of Switzerland-headquartered