74 M&A transactions were carried out in Poland in Q3 2022, i.e. 8% more than the year before and 16% less than in the previous quarter. In terms of industries, the Media / IT / Telecom (19%), Biotechnology (18%) and FMCG (9%) sectors dominated, according to a report by Navigator Capital and Fordata.
“The current geopolitical situation significantly affects the level of uncertainty in the economy, which does not mean, however, a brake on the M&A market. In Q3 2022 there were 74 transactions, 6 more than in the corresponding period of the previous year, which proves the good condition of this The following quarters remain a challenge for companies due to rising inflation and energy costs as well as threats related to supply chains, which may be a motive for further consolidation transactions aimed at mitigating the existing risks,” said Artur Wilk, manager at Navigator Capital Group
The highest value acquisition of all M&A transactions with a price disclosed in Q3 2022 was the sale of Curiosity Diagnostics by Scope Fluidics to Bio-Rad Laboratories. As announced in the official announcement, the amount paid after signing the contract is USD 100 million, while after meeting certain conditions contained in it, the value of the transaction may be increased by another USD 70 million. Curiosity Diagnostics is an entity whose main activity is work on PCR ONE – a device capable of quickly detecting bacterial and viral infections. The acquisition of the rights to the device by a company included in the S & P500 index together with the company allows us to assume that the commercialization time of a new technological solution will be shortened, while Scope Fluidics received, under the transaction, an amount covering at least ten times the costs incurred for research and development, it was announced.
The Media / IT / Telecom sector has traditionally been distinguished by the largest number of completed acquisition processes. Wirtualna Polska Holding acquired 3 entities for a total amount of PLN 454 million. The first to be announced was the acquisition of the Hungarian szallas.hu – a hotel booking entity operating in 7 countries and offering over 75,000 accommodation facilities. Another acquisition was the purchase of Benchmark – a website established in 1997 as a performance ranking for people interested in the performance of computer hardware. At the end of the quarter, the purchase of Audioteka, a website selling audiobooks, was also announced.
The report also condemned consolidation processes on the medical services market. In the third quarter, most transactions were made among dental clinics, the market of which is consolidated by Dentity and United Clinics. In addition to the portfolio companies, Tar Heel Capital and Innova Capital, respectively, Medicover and Enel-Med also made transactions on this market.
Acquisitions in the energy market are also noteworthy. In the last three months there were 6 of them, compared with 5 in the first quarter (carried out by Lotos) and 2 in the next. Their nature was also more diversified. – RWE acquired 100% of shares in Alpha Solar, EDP Energia Polska – 100% of shares in Zielona-Energia.com, and Galileo Green Energy acquired a 35% stake in a photovoltaic systems installer for the Pagra business, it was reported.
The dominant group of sellers were private investors, responsible for 76% of M&A processes. This time, a decrease in involvement in sales processes was observed among financial investors who were the selling side in 8% of transactions.
“In percentage terms, the activity of PE / VC funds among buyers almost doubled after falling to 4 acquisitions recorded in the second quarter of the year. 7 acquisitions, however, are still not much compared to the purchasing activity of the sector in 2021 (11 acquisitions in the same period). Acquisition volume may be due to the investment cycle, but is more likely to be the result of uncertainty in global markets, which makes funds place more emphasis on their current portfolio to secure the business foundations of their assets, rather than looking for buying opportunities, although these may come the time in the next quarter and at the turn of the year due to the increasingly difficult situation of companies facing further increases in energy prices and raw material shortages,” commented Marcin Rajewicz, key account manager at Fordata.
Source: Navigator Capital, Fordata and ISBnews
