There were 94 M&A transactions in Poland in Q3 2023, 20 more than a year earlier, according to the “M&A Index Poland” report by Navigator Capital and Fordata. By industry, Media/IT/Telecom (26%), Industry (11%) and Financial Services (9%) sectors dominated.
“In Q3 2023, we witnessed 94 transactions in the Polish M&A market. This is 20 more than in Q3 2022 and 2 less than in Q2 2023. The largest transaction was the acquisition of Techland by Tencent,” according to the M&A Index Poland report. Mergers and Acquisitions in Q3 2023.”
The transaction was made by Tencent’s subsidiary Proxima Beta Europe through the purchase of shares from Techland founder Pawel Marchewka and the Marchewka Family Foundation. As a result of this acquisition, Tencent became a major shareholder in Techland. The value of the transaction is estimated at around PLN 6.3 billion. Despite Tencent’s majority stake, Techland retains full franchise rights to its games and artistic freedom, it was indicated.
TMT players continued to be the most popular acquisitions, whose share of acquired entities, however, dropped from over 26% to 17% compared to the previous quarter. Deals in the industrial sector continued to come in second place, with their share rising quarter-on-quarter from 11% to 14%. The past quarter also saw an abundance of foreign investments by Polish companies, especially in the Western European region. The largest such investment was the purchase of Menzies Distribution by Polish logistics company InPost for PLN 227 million. Also of interest was the acquisition of Imperalum, a Portuguese manufacturer of waterproofing products, by the Polish company Selena FM. The acquisition of Menzies is expected to enable InPost to expand in the UK, while the Imperalum acquisition is expected to support Selena’s expansion in the Iberian Peninsula, the report’s authors pointed out.
“Despite the decrease compared to the previous quarter, the achieved year-on-year increase in the number of transactions confirms the conclusion, pierced from our previous report, about the good condition of the M&A market in Poland in 2023. Investors are reacting positively to signals from the market such as decreasing inflation and stabilization of the economic situation after a turbulent 2022,” commented head of M&A at Navigator Capital Group Karol Szykowny.
Among buyers, financial investors in the form of PE/VC funds again stood out as the most active, accounting for 18% of transactions. Among sellers, private sellers dominated, accounting for 78%, while sales were significantly increased by financial investors, whose share increased to 10% compared to the previous quarter where they accounted for only 3% of sellers.
“Despite the still ongoing war in Ukraine and the resulting economic and geopolitical problems, the Polish M&A market will remain active in the coming months. Although the pace of transactions may fluctuate somewhat, the end of the year is expected to be a time for investing, especially in the new technology sector. VC investors will look to support Polish startups, and companies will have to increasingly incorporate ESG principles into their business strategy,” indicated key account manager at Fordata Marcin Rajewicz.
Source: Navigator Capital, Fordata and ISBnews
