SINGAPORE, April 28, 2014 /PRNewswire/ -- Intralinks® Holdings, Inc. (NYSE: IL), a leading, global SaaS provider of content management and collaboration solutions, announced today the release of the latest Intralinks Deal Flow IndicatorTM (DFI), a unique predictor of future mergers and acquisitions (M&A) activity.
The Intralinks DFI reliably forecasts changes in the volume of global M&A deals that will be announced in the next six months, or through the third quarter of 2014.
This quarter indicates sustained momentum in M&A activity in 2014, continuing to build on the strong levels of M&A activity seen in 2013. The latest data, compiled through the end of March 2014, shows a 16 per cent increase in year-on-year (YoY) early-stage global M&A activity, with particularly strong performance in Asia Pacific. The region jumped 18 per cent YoY and 10 per cent quarter-on-quarter (QoQ), with no indications that the decelerating Chinese economy is impacting dealmaking.
"Global M&A markets are healthy, maintaining high levels of activity and continued optimism among dealmakers," said Philip Whitchelo, vice president of strategy and product marketing for APAC and EMEA at Intralinks.
"Many factors are driving a highly competitive market, including a good lending environment and the need of corporations and private equity to put their money to work and buy growth. Deal volumes across the value chain are up, and we expect to see more high profile deal announcements through 2014, especially in hot sectors like technology, telecommunication, media and entertainment and consumer."
"Deal volume throughout the APAC region in particular has been impressive, and this comes off the back of consistent year-on-year growth since Q1 2010 for the region. The data certainly points towards APAC continuing to experience strong growth over the next six months," Mr Whitchelo continued.
Intralinks recently held its popular Dealmakers APAC breakfast briefing in Hong Kong, which included senior representatives from Standard Chartered, Allen&Overy and Freshfields Bruckhaus Deringer. Asked to comment on the the temperature of the regional deal landscape, the panelists mirrored the results of the Deal Flow Indicator, indicating stronger market conditions than in the previous 12 months.
Panelists agreed there had been a pick-up in activity across the region, with a number of substantial deals in Indonesia, Malaysia and Thailand over the last year. It was also noted that over the past five years, the inter-regional flow of M&A activity has completely transformed the deal landscape. What this means is that the universe of buyers has become larger, causing the price of assets to rise.
From a sector perspective, panellists said there has been significant activity in financial services, especially in banking and insurance, as well as in the energy sector.
Intralinks Deal Flow Indicator Highlights -- Outlook for Q3 2014
The Intralinks DFI tracks global M&A sell-side mandates and deals reaching due diligence prior to public announcement, providing a predictor of future global M&A activity levels. The Intralinks DFI is based on Intralinks' insight into a significant percentage of early-stage M&A transactions. Independent research shows that the Intralinks DFI is a reliable predictor of future changes in the number of announced M&A transactions, with percentage changes in the Intralinks DFI typically being reflected in announced deal volumes approximately six months later. Highlights from the latest Intralinks DFI include:
North America
North American levels of early-stage M&A activity grew 11 per cent YoY, sustaining some momentum. While deal volume was down 6 per cent quarter-on-quarter (QoQ), this is largely a seasonal effect and the US market remains strong.
Europe, Middle East and Africa (EMEA)
Europe continues to perform strongly and consistently, with a 21 per cent YoY increase, paired with a 5 per cent increase QoQ. Regional instability and concerns about the Ukraine crisis aren't dampening enthusiasm and aren't expected to impact M&A activity, according to our survey.
Emerging Markets
Continuing a trend from 2013, Latin America deal volume increased 13 per cent YoY, but was down 10 per cent QoQ. Dealmakers in the region expressed reduced optimism about prospects for the second half of 2014.
Intralinks is also detailing results from a separate global survey that gauged sentiment on the future of the global M&A market.
Global Sentiment Survey
In March 2014, Intralinks conducted a separate survey of more than 1,000 global M&A professionals to gauge dealmakers' sentiments and views on the M&A market. Highlights of the survey include:
- Overall, 63 per cent of M&A professionals are optimistic about the current deal environment, consistent with reported sentiment from the last quarter
- 73 per cent predict M&A activity will increase over the next six months, consistent with last quarter and with the Intralinks DFI data
- North American respondents expressed the most optimism about future deal activity in 2014, with 70 per cent expecting an increase. Latin America showed the most pessimism, with only 47 per cent expecting increased deal activity through the remainder of the year
Doubts emerged from the survey regarding deal valuation, which respondents all agreed was the greatest impediment to getting deals done. Germans in particular are also feeling pressure about energy costs for manufacturing, which 53 per cent agree make them a less attractive M&A target for international investors. In addition, 63 per cent of respondents in the UK expect a negative impact on M&A if the Scottish independence referendum were to pass.
About Intralinks Dealspace™
Intralinks is a leading supplier of solutions for managing strategic transactions. Intralinks Dealspace™, the market leading virtual data room (VDR), gives M&A professionals a complete solution to manage the full lifecycle of a deal. Intralinks Dealspace supports every step of the deal process, enabling deal teams to securely exchange data with buyers, sellers and advisors, helping speed strategic transactions such as mergers, acquisitions, divestitures, capital raises and corporate restructurings. For more information about the Intralinks DFI, please visit http://www.intralinks.com/knowledge/intralinks-deal-flow-indicator.
About the Intralinks Deal Flow Indicator
The Intralinks Deal Flow Indicator provides Intralinks' perspective on the level of M&A due diligence activity taking place during any given period of time. The statistics contained in the DFI represent the volume of virtual data rooms opened, or proposed to be opened, through Intralinks or other providers for the purpose of conducting due diligence on proposed transactions including asset sales, divestitures, private placements, financings, capital raises, joint ventures and partnerships. These statistics are not adjusted for changes in Intralinks' share of the virtual data room market or changes in market demand for virtual data room services. These statistics may not correlate to the volume of completed transactions that may be reported by market data providers and should not be construed to represent the volume of transactions that will ultimately be consummated during any period of time. Indications of future completed deal activity derived from the DFI are based on assumed rates of deals going from due diligence stage to completion. In addition, the statistics provided by market data providers may be compiled with a different set of transaction types than those set forth above.
THIS PRESS RELEASE AND THE DEAL FLOW INDICATOR (COLLECTIVELY THE "MATERIALS") ARE PROVIDED "AS IS" FOR INFORMATIONAL PURPOSES ONLY. INTRALINKS MAKES NO GUARANTEE, REPRESENTATION OR WARRANTY OF ANY KIND REGARDING THE TIMELINESS, ACCURACY OR COMPLETENESS OF THE CONTENT OF THE MATERIALS. THESE MATERIALS ARE BASED ON INTRALINKS' OBSERVATIONS AND SUBJECTIVE INTERPRETATIONS OF DUE DILIGENCE ACTIVITY TAKING PLACE, OR PROPOSED TO TAKE PLACE, ON INTRALINKS' OR OTHER PROVIDERS' VIRTUAL DATA ROOM PLATFORMS FOR A LIMITED SET OF TRANSACTION TYPES. THESE MATERIALS ARE NOT INTENDED TO BE AN INDICATOR OF INTRALINKS' BUSINESS PERFORMANCE OR OPERATING RESULTS FOR ANY PRIOR, CURRENT OR FUTURE PERIOD, NOR ARE THESE MATERIALS INTENDED TO PROMISE, GUARANTEE OR ASSURE FUTURE LEVELS OF COMPLETED DEAL ACTIVITY. THESE MATERIALS ARE NOT INTENDED TO CONVEY INVESTMENT ADVICE OR SOLICIT INVESTMENTS OF ANY KIND WHATSOEVER.
THE INTRALINKS DEAL FLOW INDICATOR MAY BE USED SOLELY FOR PERSONAL, NON-COMMERCIAL USE. THE CONTENTS OF THE INTRALINKS DFI MAY NOT BE REPRODUCED, DISTRIBUTED OR PUBLISHED WITHOUT THE EXPRESS WRITTEN PERMISSION OF INTRALINKS. FOR PERMISSION TO REPUBLISH DEAL FLOW INDICATOR CONTENT, PLEASE CONTACT INFO@INTRALINKS.COM.
Forward Looking Statements
The forward-looking statements contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are express or implied statements that are not based on historical information and include, among other things, statements concerning Intralinks' plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies. These statements are neither promises nor guarantees, but are subject to a variety of risks and uncertainties, many of which are beyond Intralinks' control and could cause actual results to differ materially from those contemplated in these forward-looking statements. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof. As such, Intralinks undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise. For a detailed list of the factors and risks that could affect Intralinks' financial results, please refer to Intralinks public filings with the Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K for the year-ended December 31, 2013.
Trademarks and Copyright
"Intralinks" and Intralinks' stylized logo are the registered trademarks of Intralinks, Inc. This press release may also refer to trade names and trademarks of other organizations without reference to their status as registered trademarks. © 2014 Intralinks, Inc. All rights reserved.
Source: Intralinks
