1. from NextWave Wireless Inc, a listed company engaged in
Mid-­‐Market M&A the development of next generation mobile broadband for
US$ 111.6m.
Snapshot...
st
Asia Mid-­‐Market:
31 August 2011
Asian mid-­‐market M&A recovered from last months collapse
in volume. 30 deals took place (down 31% year on year) and
M&A Outlook: Negative total deal value stood at US$3.6bn (down 16% from last
year).
Overall mid-­‐market deal volume in the month of August stood The most high profile cross-­‐border deal was the purchase of
at 234 with total value equating to US$23.772bn. This is down baby nutrition business Wockhardt Limited by French food
from August of 2010 when there were 338 deals (30.8% giant Danone SA for US$250m. The transaction marks
decline) with a total deal value of US$31.347bn (24.2% drop) Danone's entry to the Indian baby nutrition market.
The majority of transactions this month took place in the
financial services and healthcare sectors. EU Mid-­‐Market:
Deal malaise continued in the EU region as 68 deals took
place compared to 104 during the same period last year
Sector Focus: Despite economic uncertainty continuing to (38% drop) whilst total deal vale, at US$4.96bn, was also
permeate the market, one industry that could be looked upon down from last year when it totalled US$7.99bn (38% drop).
to buck the trend and yield solid M&A growth is the industrial
technology sector. The growth premise is based on the One of the most notable mid-­‐market deals was the purchase
strength of corporate balance sheets with low-­‐yielding cash of UK based television production company Shed Media by
balances and large pools of undeployed private equity capital. multi-­‐billion dollar media conglomerate Time Warner for a
These technicals combined with the lack of organic growth consideration of US$172m. Apart from the UK, most of the
create a favourable dynamic for M&A activity in the industrial EU deals were targeted at Germany and Spain.
technology space.
Macro Snapshot: The month of August ended on a somewhat Looking Ahead
positive note in the US as markets rallied and gold pulled back. M&A in US utilities continues to gather pace. US$51bn of
There is now a growing expectation that another round of deals for utility firms took place in H1 2011, the most
stimulus, in the form of QE3, will be initiated by the Federal buoyant period since 2007. This can be partly attributed to
Reserve. Consequently, expect to see another upswing in the shale gas boom, which has enabled gas production to
precious metals whilst stocks should also rise in nominal rise and opened up economically viable reserves. It can also
terms. In Europe manufacturing activity experienced a be attributed to utility firms looking to diversify their
precipitous decline triggering fears that it might push the product portfolio, specifically into cleaner energies. Notable
already precious economic bloc into a double-­‐dip recession deals included Duke Energy US$13.7bn acquisition of
Progress Energy and AES Dayton Power &
Light for US$4.7bn. We expect foreign and private equity
Regional Developments interest to drive M&A even further in this sector over the
US Mid-­‐Market: coming 18 months.
The month of August saw 108 deals take place totalling
US$13.4bn in value. This is down 24.4% year on year when
New on Opinions
there were 141 deals. Total deal value was also down 6.8%
when it stood at US$14.4bn. A nation no longer governed by shopkeepers
After a horrendous 2009, and marginal improvement in
Some of the most noteworthy cross-­‐border deals included the 2010, what can the corporate education and training
acquisition of Jimlar Corporation,
footwear companies by Li & Fung Limited, the listed Hong Click here to read the full report.
Kong based export trading firm, foran estimated sum of
US450m. Marriage of branded and private labels
When private labels (PLs) were first introduced to the
Elsewhere, NTT DoCoMo Inc, the listed Japan based mobile marketplace, it seemed like the marriage between branded
telecommunications company, agreed to acquire the labels (BLs) and PLS would be one of mutual understanding -­‐
PacketVideo Corporation, the US based wireless and digital BLs would focus on tier one and two consumers while PLs
home multimedia software and service applications provider, would focus on tier three consumers. Click here to read the
full report.

2.
Mergers Alliance Transaction Highlights Award for rising Catalyst star
Emmet Keating, Principal at MA UK partner
advised Stefanutti Stocks Limited on the
firm Catalyst, has won the accolade of
acquisition of all the shares in issue of Cycad
Finance Professional of the Year in leading
Pipelines (Pty) Ltd, and its related properties.
Midlands awards ceremony, Birmingham
This company will propel Stefanutti Stocks to
Young Professional of the Year. Emmet,
the top of the list of contractors in the pipeline
who joined Catalyst in 2006 and has
construction sector in sub-­‐Saharan Africa. Lead
worked on market leading deals including
advisor was Pieter Venter
ScriptSwitch, Aim Aviation and AVF during
his time with Catalyst, was presented with the award by
Olympian Derek Redmond during a gala ceremony at
Catalyst Corporate Finance advised
Birmingham's International Conference Centre
HomeServe plc on the sale of its Retail
Warranties Group to a management buy-­‐out.
HomeServe plc is the international home
emergency insurance cover and domestic BroadSpan Capital expands across Brazil
repair group with a market capitalisation of
£1.7bn and 6,000 employees. Lead was Mark
Humphries
In the News Having gone from strength to strength, through a tough
global economy, BroadSpan Capital, the Mergers Alliance
Mergers Alliance partners feature in Thomson partner firm that covers Central America, South America and
Financial list the Caribbean, have been through a period of significant
expansion across Brazil.
Responding to the massive growth, geographic size and
regional cultural differences in the Brazilian market,
BroadSpan has endeavoured to expand its coverage of Brazil
through its Board of Advisors, consisting of ex-­‐
Chairmen and senior level executives from industry. In
addition to Rio de Janeiro and Sao Paulo, these individuals
provide BroadSpan with a presence across the country, from
Fortaleza in the Northeast to Porto Alegre and Joinville in
the South, Goiania in the Center-­‐West and Belo Horizonte in
Southeast, giving BroadSpan excellent geographic coverage
of the country as well as top level access to middle and large
corporates across the country.
Thomson Financial, one of
resource, have issued their second quarter league tables for
2011, ranking corporate finance firms by number and value of
deals. I am delighted to announce that this quarter shows a
continued appearance in these tables by two Mergers Alliance
members Daruma and Bluemind CF.