Intralinks Deal Flow Indicator Predicts Global M&A Market is Poised for Recovery in 2014 Separate poll of 1,900 M&A professionals also shows optimism for deal-making in 2014
NEW YORK, Jan. 22, 2014 /PRNewswire/ -- Intralinks® Holdings, Inc. (NYSE: IL), a leading, global SaaS provider of content management and collaboration solutions, announced today the release of the Q4 2013 Intralinks Deal Flow Indicator™ (DFI), a unique predictor of future merger and acquisition (M&A) activity. Intralinks is also detailing results from a separate global survey that gauged sentiment on the future of the M&A market.
The Q4 2013 Intralinks DFI predicts changes in the volume of global M&A deals that will be announced through the first half of 2014. The Q4 2013 Intralinks DFI shows a 17 percent increase in year-on-year (YoY) early-stage global M&A activity, with particularly strong performances in North America and Europe, Middle East and Africa (EMEA). This quarter's DFI points to a recovery in global M&A activity in 2014, continuing to build on the healthy levels of early-stage M&A activity seen in 2013.
"Many global economies are starting to show signs of stronger growth and increased confidence," said Matt Porzio, Vice President M&A strategy and product marketing at Intralinks. "While the start of 2013 was overshadowed by potential crises (Cyprus bailout, Eurozone debt, slowing growth in China and fears over US Fed tapering), none of the worst case scenarios materialized and global markets performed strongly. In Q4 2013, we saw that the volume of deals was still increasing and quarterly numbers were simply balancing themselves out."
Intralinks Deal Flow Indicator Highlights
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 Q4 2013 Intralinks DFI include:
North American levels of early-stage M&A activity made a strong comeback in Q4 after a relatively weak performance during the earlier portion of 2013, with a 26 percent YoY increase during the quarter. The quarter-on-quarter (QoQ) increase of 2 percent followed a downturn in Q3 2013, pointing to a strong start for North American M&A activity in 2014.
Europe, Middle East and Africa (EMEA)
Europe continues to perform strongly and consistently, with a 15 percent YoY increase in Q4 – continuing the trend of double digit YoY increases every quarter in 2013. While QoQ numbers were down 4 percent, we believe that the Eurozone is set to resume growth in M&A activity levels in 2014.
Latin America deal volume was down 8 percent YoY (and down 9 percent QoQ), while Asia Pacific grew 10 percent YoY (down 15 percent QoQ). Growth in China has slowed compared to its historical levels, but is still above 7 percent per annum.
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 run 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.
Global Sentiment Survey
In December 2013, Intralinks conducted a separate survey of more than 1,900 global M&A professionals to gauge sentiment on the 2014 deal market.
- Overall, 64 percent of M&A professionals are optimistic about the 2014 market
- 73 percent predict M&A activity will increase over the next six months
- Despite lower levels of growth in Asia Pacific, respondents in that region were extremely optimistic, with 77 percent expecting an increase in M&A activity
This view was consistent across all geographies, reinforcing the sentiment that global M&A markets will continue to be active in 2014, with expectations of seeing the most activity in the technology and energy industries. Respondents were least optimistic in Latin America, which is consistent with deal flow levels seen in the Q4 2013 DFI.
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, 2012 and subsequent quarterly reports.
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 Holdings, Inc.