M&A deals grow to US$30.3 billion during first quarter of FY22: Report

The M&A activity grew by 5.6% in terms of value as compared to the first quarter of 2021 from January to March 2022

April 12, 2022

Acquisitions in technology and healthcare, availability of private equity, abundant cash reserves, and historically low interest rates are driving M&A growth.

Deal activity by volume witnessed a record increase of 29.6% during the first quarter of 2022

The US accounted for 70% of the total inbound M&As as it invested US$ 8.2 billion

The high technology sector captured 21.8% of the market & accounted for deals worth US$ 6.6 billion cumulatively

While the deal-making was undergoing a downturn in the first quarter of 2022, mergers and acquisitions witnessed steady growth and reached a four-year high valuation of US$ 30.3 billion in the first quarter of 2022, as per a report by Refinitiv. From January to March 2022, the M&A activity grew by 5.6% in terms of value as compared to the first quarter of 2021. Acquisitions in technology and healthcare, availability of private equity, abundant cash reserves, and historically low interest rates were key factors that are pushing M&A growth.

The report also stated that the deal activity by volume witnessed a record increase of 29.6% during the first quarter of 2022. While M&A deals involving domestic companies decreased by 8.3% to reach US$ 23.7 billion, and domestic M&As reduced by 24.5% to reach US$12.1 billion, inbound M&As grew by a record 17.9% to reach US$ 11.6 billion – the highest first-quarter period growth since FY17. 

The US accounted for 70% of the total inbound M&As as it invested US$ 8.2 billion, which is an increase of 39% as compared to the previous year. In addition, outbound deals have more than doubled to reach US$ 5 billion, marking this quarter the highest since 2010. The US has been the most targeted nation in terms of value from domestic companies bagging deals worth US$3.9 billion and contributing to 77% of the total market share. 

The high technology sector captured 21.8% of the market & accounted for deals worth US$ 6.6 billion cumulatively. Healthcare had a market share of 15.5% and grew four times in value to US$ 4.7 billion. These sectors were followed by Financials at 13.5% and a deal valuation worth US$ 4.1 billion.