One striking aspect of Irish M&A this year has been the range of industries that have seen notable deal activity, with the 20 largest transactions in the first half spread across no fewer than seven sectors of the market.
That may reflect a more focused approach to dealmaking, with bidders determined to pursue specific targets for strategic fit, rather than to ride sectoral trends.
That said, dealmaking was particularly elevated in certain sectors. In value terms, financial services accounted for 37% of M&A in the first half of the year, more than any other sector. Large deals included the DAE bid for Nordic Aviation Capital in the aviation finance sub-sector, as well as AIB's purchase of €1.2bn of its own shares from the Irish government, part of its continued move toward private ownership since the global financial crisis 15 years ago.
Pharmaceuticals, medical and biotech (PMB) also made an important contribution, accounting for 25% of Irish M&A by value during the first half. Ireland's PMB sector continues to attract global attention, from both strategics and sponsors. Investindustrial's purchase of DCC Healthcare was an example of the latter trend, along with Advent International's €153m investment in Felix Pharmaceuticals; the first half of the year also saw the German giant Merck buy manufacturing facilities in Ireland from China's WuXi Biologics.
Meanwhile, the energy, mining and utilities (EMU) sector was another stand-out area of the market, accounting for 14% of M&A by value. Interest in Irish renewable energy licenses and options is continuing, along with a broader focus on energy security and infrastructure. For example, Greenlink's subsea power cables linking Ireland with the UK play an important role in integrating European energy markets and advancing the energy transition; it was sold to a consortium of European investors for €1bn. Elsewhere, HitecVision agreed to buy a portfolio of six Irish onshore wind assets from Greencoat Renewables for €156m.
By volume, the business services sector led the pack, accounting for 23% of all first-half deals. The consolidation of professional services such as accountancy is a continuing theme.
TMT follows, accounting for 22% of all first- half deals. Many of those transactions featured smaller assets – with Irish intellectual property and innovation in high demand – but larger deals included Wolters Kluwer's acquisition of legaltech firm Shine Analytics for €425m and TA Associates' €414m purchase of Clanwilliam Group, the healthtech business. A €121m investment in artificial intelligence specialist Tines Security by marquee investors including Goldman Sachs, Softbank and Accel Partners was another standout deal, marking Tines as Ireland's 11th unicorn
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