New research findings reveal that M&A deal activity in North America is on the rise. After somewhat disappointing figures in April, the value of deals targeting North American companies rose in May by a sharp 45%, from a rather lackluster US$57,365 million to a healthy US$83,081 million. Deal volume was also up, from 1,063 to 1,096 transactions.
Deal-making in the US was the main factor driving the increase, with 814 transactions totaling US$75,353 million. This was an increase of almost 50% over the previous month, when 783 transactions worth US$50,443 million were recorded. Canadian deals also contributed to the increase, with 282 transactions worth a collective US$7,728 million – a respectable 11.7% increase on the previous month.
Deal valuations were also higher than April, with fifteen deals worth US$1 billion or more. At the top of the list was the US$5.6 billion acquisition of Nebraska-based commodities group Gavilon by Japanese powerhouse Marubeni. Canada’s highest value deal came from investment fund Caisse de Dépôt et Placement du Québec, which increased its minority stake in CGI Group Inc from 8% to 25% – a deal estimated to be worth US$1 billion. Interestingly, the Caisse deal is one of many deals recently involving Quebec-based companies. Since early January, Quebec has emerged as a major hub for mergers and acquisitions, including the $3.4 billion sale of Astral to BCE Inc., Couche-Tard’s $2.8 billion (US) acquisition of Statoil Fuel & Retail, and most recently, CGI Group Inc.’s $3.3 billion bid for Logica.
Companies looking to capitalize on the increased M&A activity in Northern America should consider setting up a virtual data room. A secure online data room can facilitate both buy and sell-side deals, removing the need to share documents and track the process through email. For buy-side companies with multiple targets, an unlimited use Virtual Data Room is an affordable, secure and effective way to evaluate multiple target companies to maximize growth opportunities. For sell-side companies, an online data room enables you to upload and organize all your due diligence documents ahead of time, and engage with buyers from around the globe, to drive the best deal.