M&A volume up 10% to the close of November 2019
· US-based acquirers have invested over BRL 15bn in Brazil YTD
· Technology deal volume up 31% to the close of November
According to the most recent TTR M&A Report, the Brazilian market registered 1,217 transactions to the close of November, up to 10% compared to the same 11-month period last year. Aggregate deal value is up 58% to BRL 275.8bn, meanwhile, driven by the BRL 68bn acquisition of Buzios Oilfield by a consortium led by Petrobras.
Strategic M&A transactions represent approximately 60% of total deal volume, with, the remaining 40% spread between Private Equity deals, Venture Capital investments and Asset Acquisitions.
Top sectors
Technology deals lead the M&A market with 302 transactions to the close of November, up 31% compared to the same period last year. The Financial and Insurance sector ranks second with 181 deals.
Cross–border Deals
Foreign bidders acquired 281 targets in Brazil worth a combined BRL 161.3bn YTD. US-based buyers led inbound deal-making in Brazil with 112 transactions, up 6% to the close of November, while buyers based in Japan followed with 22 deals. US-based investors targeted Technology and Internet companies above all.
Private Equity
Private Equity activity fell 15% to the close of November relative to the same 11-month period in 2018, with 79 announced and closed transactions. Aggregate deal value is up 22% to BRL 23.2bn, meanwhile, taking into account 46 transactions of disclosed consideration. Private equity investments were mostly focused on financial companies with 17 deals, representing a 113% upswing compared to the same period in 2018.
Venture Capital
Venture Capital activity is up 19% with 224 investments to the close of November. Aggregate deal value is up 12.7% to BRL 9.4bn, meanwhile, based on 166 deals of disclosed consideration. Technology startups attracted the most investors with 136 deals in the segment, up 31% compared to the same period in 2018. Canary, a Brazil-based fund, leads the VC ranking by deal volume with 14 transactions, followed by Argentina-based Kaszek Ventures, with 10 deals under its belt YTD.
Equity Capital Markets
IPOs are regaining momentum with seven listings YTD and two in the pipeline, together worth BRL 11bn.
Deal of the Month
TTR selected Hapvida´s acquisition of São Francisco Saúde Group Deal of the Month for November. The deal value was BRL 5bn.
The São Francisco Group manages a portfolio of health and dental plans of approximately 1.8 million lives, with net revenues of about BRL 1.5bn in 2018.
League Tables
Banco Itaú BBA leads TTR’s financial advisory ranking in Brazil by volume and aggregate value YTD with 35 mandates on deals worth a combined BRL 47bn.
Pinheiro Neto Advogados leads TTR’s legal advisory ranking in Brazil by volume with 81 transactions YTD. Machado, Meyer, Sendacz e Opice Advogados leads the TTR legal advisory ranking by aggregate value, with mandates on deals worth a combined BRL 57.5bn.