Geopolitical risks dampen volume outside of North America
WINDSOR,
Conn., Jan. 10, 2024 /PRNewswire/ -- SS&C
Technologies Holdings, Inc. (Nasdaq: SSNC) today announced Q1 2024
global and regional predictions from the SS&C Intralinks
Deal Flow Predictor, a quarterly publication of future
mergers and acquisitions (M&A) announcements.
"Mergers and acquisitions activity encountered seasonal and
market challenges at the start of Q3 2023 but recovered by the end
of the year," said Ken Bisconti,
Co-Head of SS&C Intralinks. "Based on pre-announced deal flow,
we expect Q1 2024 volume to hold steady, with marginal risk of
decline. We have seen deal flow remain remarkably stable over the
last three years and are optimistic about M&A activity in H1
2024."
Regional market forecasts for Q1 2024
M&A activity:
- Globally, M&A volumes are expected to be flat
in all regions except North
America. We are forecasting a neutral outlook for global Q1
2024 volume, with nominal risk of decline.
- Asia Pacific saw
declines in dealmaking in the second half of 2023, but ended the
year on an upward trajectory. There are several sectors poised to
outperform in the next quarter, including the Technology sector in
China, Banking and Energy in
India, and Biotech in Japan and South
Korea.
- Europe, the Middle
East and Africa experienced a number of stressors in
Q3 2023, but rebounded closer to Q4. Sectors showing signs of
strength on a QoQ and QoQY basis include Telecom in France, Electronics and Finance in
the Netherlands and Insurance in
South Africa, with the U.K.
expected to perform strongly overall.
- Latin America saw a dip
in volume in Q3 2023, followed by a strong rebound in Q4. The
potential conflict between Venezuela and Guyana presents downside risks, as it could
involve Brazil, the region's
largest economy.
- North America
experienced peak pre-announced deal volume in August and the
highest regional deal flow in October since 2021. We are cautiously
optimistic upward trends will continue throughout 2024, driven by a
rebound in U.S. equities and the prospect of interest rates
flattening.
The SS&C Intralinks Deal Flow
Predictor forecasts the number of future M&A
announcements by tracking early-stage M&A activity from the
previous four quarters, defined as new sell-side M&A
transactions that are in preparation or have begun their due
diligence stage. On average, early-stage deals are six months away
from public announcement.
SS&C Intralinks is a pioneer of the virtual data room,
delivering software-enabled services across the entire deal
lifecycle, including deal marketing, deal prep, due diligence,
insights and post-merger integration. Intralinks technology enables
and secures the flow of information by facilitating
M&A, capital raising and investor reporting.
SS&C Intralinks has executed more than USD 35
trillion worth of financial transactions on its platform.
About SS&C Technologies
SS&C is a global provider of services and software for the
financial services and healthcare industries. Founded in 1986,
SS&C is headquartered in Windsor,
Connecticut, and has offices around the world. Some 20,000
financial services and healthcare organizations, from the world's
largest companies to small and mid-market firms, rely on SS&C
for expertise, scale and technology.
Additional information about
SS&C (Nasdaq: SSNC) is available at www.ssctech.com.
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SOURCE SS&C