Merger and Acquisition (M&A) trends in H1 2024 (2024)

Big business doesn’t stand still, and if you blink you’ll miss something: now seems like a good moment for an overview of the most intriguing and consequential trends in the first half of this year, and a look to what you can expect in the next.

Money never sleeps, as they say: M&A activity in 2024 got off to a strong start with the global mergers and acquisitions (M&A) market up 22% compared to the previous year by the end of the first half.

There was plenty of movement in the private equity-backed space throughout, with a focus on taking public companies back into private ownership.

The year started with a bang. January saw the announcement of a number of $10+ billion deals including Synopsys Inc.’s $35 billion cash-and-stock deal for ANSYS Inc., Hewlett Packard Enterprise’s $14 billion all-cash acquisition of Juniper Networks, and BlackRock Inc.’s $12.5 billion acquisition of Global Infrastructure Partners (GIP).

In Q1 the global automotive industry saw 119 M&A deals, worth $2.5 billion, announced. This represented a 73% drop quarter-on-quarter, but was up 6% compared to Q1 2023.

Also announced in January was Chesapeake Energy’s $7.4 billion merger with Southwestern Energy, now expected to close in the second half of the year, which should keep trends moving in a positive direction – good cheer that’ll be needed after a sleepier Q2.

In the second quarter the overall number of deals however went down by 25%, a four-year low, with acquisitions worth $500 million or less dropping by 13% in value, though the period did finish with some fireworks when the Home Depot completed the acquisition of SRS Distribution Inc. in a deal worth approximately $18.25 billion.

Despite this, both the energy and technology sectors saw an increase in activity, with AI and generative AI continuing to be watchwords, while within the FinTech sector diversity is seen as a driving force (CFO stack, wealth-tech, financial services, etc).

M&A in H1: the big hitters

Headline deals by big-name companies abounded this year. February saw entertainment giant Disney announce a $1.5 billion deal to acquire a stake in Epic Games, developer of the hugely popular online video game and game platform Fortnite, while in March it was announced that Canadian artificial intelligence start-up DarwinAI was acquired by tech giant Apple for an undisclosed sum.

The UK government conditionally approved a proposed merger between Vodafone’s UK operation and Three UK in May, although the proposed £15 billion deal continues to be investigated by the Competition and Marketings Authority (CMA). The merger, if approved, would combine the companies’ UK telecommunications operations under a single network provider.

In May Uber announced a $1.25 billion deal to take over German firm Delivery Hero’s foodpanda business in Taiwan, in a deal that would also see Uber acquire shares in Delivery Hero. Elsewhere, Irish IT and cybersecurity provider Nostra acquired PPC, a managed print services provider and Xerox partner. This was Nostra’s 10th acquisition since 2015.

Irish farm software company Herdwatch acquired both ComTag and Lilac Technology in a seven-figure deal. The Agtech software company expects the acquisition to help them expand tech solutions for vets and veterinary practices. Software company StreamYard Top Corp (also known as Hopin) reached an agreement to be acquired by technology company Bending Spoons.

Throughout the remainder of 2024 cross-border M&A is expected to offer opportunities as U.S. dealmakers look to expand beyond their own markets, while ongoing elevated geo-political tension and the upcoming US election are likely to bring some level of uncertainty, even if only for the short term.

Private equity-backed headlines

There was plenty of movement in the private equity-backed space throughout the half, with a reported increase of 40% in activity. This marks a continuing trend among smaller technology companies who’ve struggled since IPO stepping back from the public markets and returning to the private sphere.

UK-based private equity firm Permira took website builder Squarespace private in a $6.9 billion dollar deal. Squarespace originally went public in 2021. In a separate deal Permira also acquired shares to become a majority shareholder in digital fraud detection company BioCatch for an undisclosed amount.

Swedish investment organization EQT signed an agreement in May to acquire WSO2, a company who provide API management and identity and access management (IAM) services.

Vista Equity Partners took Model N private in a deal worth $1.25 billion. Model N, who create cloud-based revenue management systems, had gone public in 2013. Earlier in the year Vista also took EngageSmart Inc private.

Having originally gone public in 2016 Everbridge, a critical event management (CEM) software company, went private via an all-cash deal with private equity giant Thomas Bravo worth $1.8 billion. Separately Thomas Bravo also struck a deal worth $5.32 billion to acquire software company Darktrace.

What to expect in H2 2024:

There’s much optimism that M&A activity will pick up inthe second half of the year, with many focusing on technology, media and entertainment, and telecommunications (TMT) companiesassociated with AI and cybersecurity software as the great hopes. It is, as they say, a game of two halves – and with a notable but wavering H1, the final score is going to be one to watch.

Contact J.P. Morgan Workplace Solutions today

Whether you’re lining up for a merger or acquisition, a buy-out or are even eyeing up an IPO, managing your equity compensation plans at these crucial times is key. No matter what stage you are at in the process we are available to offer assistance. Contact us today to speak to one of our experienced equity compensation personnel.

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