M&A activity at  four-year high of US$ 30.3 billion: Report

M&A activity in India touches US$ 5 billion, highest in first-quarter period

April 5, 2022

The number of announced deals grew by 29.6% year-on-year and the inbound M&A activity grew by 17.9%

The US was the most active foreign acquirer in India with US$ 8.2 billion, which is 70% of the market share of India’s inbound M&A

Most of the deal-making activity was aimed at the high technology sector as the deal values totalled US$ 6.6 billion

Domestic M&A activity in January-March 2022 was valued at US$ 12.1 billion – a reduction of 24.5% compared to the same period last year

Mergers & acquisitions (M&A) activity in India touched a four-year high at US$ 30.3 billion between January-March 2022 as per financial software and risk solutions firm Refinitiv. The number of announced deals grew by 29.6% year-on-year and the inbound M&A activity grew by 17.9% to touch US$ 11.6 billion in the first quarter of this calendar year compared to a year ago. Outbound M&A activity was recorded at US$ 5 billion, making it the highest first-quarter period since 2010. The acquisition of technology and healthcare, availability of private equity, abundant cash reserves, and historically low-interest rates were key factors pushing M&A growth so far this year.

However, domestic M&A activity in January-March 2022 was valued at US$ 12.1 billion – a reduction of 24.5% compared to the same period last year. The US was the most active foreign acquirer in India with US$ 8.2 billion, which is 70% of the market share of India’s inbound M&A. 

The majority of the deal-making activity was aimed at the high technology sector as the deal values totalled US$ 6.6 billion, accounting for 21.8% market share. Healthcare had a market share of 15.5% market share or US$ 4.7 billion, while Fintech companies accounted for 13.5% of all deals with a valuation of US$ 4.1 billion – a decline of 41.3% year on year.

Private equity deals amounted to US$ 9.8 billion, with high technology sectors capturing most of the activity with a market share of 28.7%.

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