‘Huge jump’ in M&A deal value for Q4 FY24
Australian M&A deal values have seen a significant increase in the fourth quarter despite a decreased number of transactions compared to 2023, HLB Mann Judd has said.
According to published transaction data for Q4 of 2024, there were only 192 deals completed compared to 263 deals completed in the same quarter last year.
This highlights a 27 per cent decrease, however, the average deal size has increased from $64.91 million to $161.15 million when comparing Q4 from 2023 to 2024.
The dramatic deal value increase can be attributed to six transactions over $1 billion this quarter.
The HLB Mann Judd analysis revealed the top three sectors by the number of deals in the 2024 fourth quarter included consumer discretionary, information technology and material.
The top sectors by deal value include consumer staples and information technology.
Information technology reflected the highest transaction value at $2.325 million, followed by materials at $2.041 million and consumer staples at $1.710 million.
The information technology sector saw Mitsubishi UFJ Trust and Banking Corporation acquire Link Administration Holdings in Q4 of 2024, which rebranded as MUFG Pension & Market Services Holdings Limited (MUFG).
“MUFG is the largest Australian pension administration company and serves over 10 million accounts, covering approximately 40 per cent of Australian private pension members,” HLB Mann Judd said.
“It also holds a market-leading position in the UK, Hong Kong and India.”
The acquisition would enhance MUFG’s market-leading positions within its two main business units, MUFG Corporate Markets and MUFG Retirement Solutions.
The fourth quarter of 2024 also saw the acquisition of Energy Exemplar Pty Ltd for $1.6 billion by Blackstone Inc and other investors.
“This acquisition is expected to boost Energy Exemplar Pty Ltd’s investment in its SaaS platform, enhancing its capability to provide accurate simulations and decision support for customers navigating the rapidly evolving energy landscape,” HLB Mann Judd said.
The SaaS platform supports the growth of renewable energy, battery storage and transmission grid investments.
In terms of SME deals in the 2024 fourth quarter, Ideagen Limited, a compliance software company, acquired Damstra Holdings Limited, a provider of cloud-based contractor and workforce management tools.
The transaction value was measured at $87.8 million.
HLB Mann Judd believes this acquisition is expected to “enhance Ideagen Limited’s solutions for high-risk industries such as mining, energy and construction.”
Damstra Holdings is the fifth Australian business acquired by Ideagen Limited since 2023.
