Irish M&A deal value for 2024 reached €27.5bn, an increase of 115% on 2023 figures William Fry LLP analysis revealed in the Firm's M&A Review 2024 which is published today. The significant rise is due in part to a number of particularly large deals for the market. 499 deals were recorded within the Irish M&A market for the year, an increase of 1% on figures from 2023.
Key findings in the report:
- Most transactions continued to be categorised as mid-market with 89% of deals reported worth between €5m and €250m
- 55% of all Irish deals in 2024 involved overseas bidders and UK-based acquirers were the most active
- 17 deals were valued at €250m or more
- Private equity in 2024 remained strong totalling 84 deals
- Technology, media and telecoms (TMT) accounts for 22% of all deals
Andrew McIntyre, Head of Corporate/M&A at William Fry said: “Despite a year marked by global political and economic uncertainty, Ireland's Mergers & Acquisitions (M&A) market demonstrated remarkable resilience, experiencing an almost unprecedented surge in value. We performed strongly, aligning with global trends where dealmakers proceeded cautiously yet remained focused on long-term objectives. As expected, the majority of M&A activity occurred in the mid-market, though we also saw a notable increase in high-value transactions, which is a welcome development. Looking ahead, this continued strength in the M&A sector positions Ireland well for future growth and opportunity.
Megadeals:
Despite Ireland seeing 17 deals valued at €250m or more, mid-market deals continued to dominate M&A activity in Ireland throughout 2024, accounting for 89% of transactions.
Ireland saw several significant megadeals in 2024, the largest being the Fab 34 transaction, where the private equity company Apollo agreed to pay Intel €10.1bn for a 49% stake in a joint venture related to the technology giant’s manufacturing facility in Leixlip, Co. Kildare.
The second-largest deal of the year saw Avolon Holdings acquire Castlelake Aviation for €4.1bn. This transaction demonstrates Ireland’s importance in the global aircraft leasing sector and the acquisition saw Bohai attain assets worth €4.75bn including 118 aircraft. The third largest deal saw a consortium of investors pay €2.5bn for Keyworth Studios, a gaming company that helped develop games such as Fortnite and Call of Duty.
Sector Watch:
The technology, media and telecoms (TMT) sector continues to lead performance in Ireland’s M&A market. TMT accounted for 22% of all deals, 111 total deals and three of the five largest deals. TMT also claimed 53% of the total value, however, the influence of the Fab 34 megadeal must be accounted for as it significantly enhanced the figures.
In deal value terms, financial services finished 2024 in second place to TM, accounting for 21% of the total market, reflecting the €4.1bn Castlelake Aviation deal and two large transactions at AIB where the Irish government continues to sell down the stake in the bank it acquired during the global financial crisis.
In other areas, business-to-business continues to generate strong M&A activity accounting for 15% of dealmaking during 2024, consistent with 2023. The year’s business service transactions included the €791m stake acquisition of Echelon Data Centres by Starwood Capital Group Management and a host of smaller deals.
Inbound activity:
International buyers continue to look to Ireland for M&A activities. 2024 saw 275 inbound transactions worth a total of €23.6bn, a 2% increase in volume, but value is up 111%.
Almost three quarters (70%) of the largest 20 deals by volume this year in Ireland involved an international acquirer, including buyers from the UK, US, China, Sweden, Turkey, Switzerland and Qatar. Overall US and UK buyers were the most active acquirers in Ireland recording 101 and 64 transactions respectively in 2024. US buyers led the way by deal value while China took the second place, driven by Avolon's acquisition of Castlelake Aviation
Private Equity:
Private equity investors continue to be a major presence in the Irish M&A market. There were 84 transactions involving private equity firms during 2024, the same number as the previous year. In value terms however private equity investment in Irish companies soared 523% to €16.4bn (albeit with €10bn associated with the Fab 34 transaction).
Eight of the 20 largest M&A transactions last year involved a private equity investor in one form or another. The sector accounted for five buyouts and three exits – despite caution in the market deals are getting done.
The bigger picture demonstrates that international private equity firms continue to see Ireland as an attractive market for dealmaking.
Outlook:
Looking ahead in 2025, Andrew McIntyre concluded: “We remain cautiously optimistic about the outlook for M&A both in Ireland and internationally – certainly there are reasons to be positive. The global economic picture is clearer, and political uncertainties have started to ease after the year of elections. This may see pent-up demand for dealmaking released from both corporations and private equity firms.
“Still we should remain cautious, with a geopolitical environment fraught with risk. Closer to home we await with interest to the extent to which Ireland's new FDI rules will impact inbound M&A deals.
“Given the more stable political environment here in Ireland, the potential in the renewables sector, the ongoing strength of the TMT market and the consolidation in areas such as business services, there is genuine optimism for a further uplift in Irish dealmaking in 2025.”
