IntraLinks Deal Flow Indicator Shows Two Percent Quarter on Quarter Decrease in Global Early-Stage M&A Activity for Fourth Quarter Economic Uncertainty Makes Dealmakers Anxious to Start Early M&A Activity
NEW YORK, Feb. 25, 2013 /PRNewswire/ -- IntraLinks® Holdings, Inc. (NYSE: IL), a leading, global technology provider of inter-enterprise content management and collaboration solutions, today announced the release of the IntraLinks Deal Flow Indicator ("DFI") for the fourth quarter of 2012. The DFI, which tracks global sell-side merger and acquisition (M&A) mandates and deals reaching the due diligence stage prior to public announcement, presented varied quarter on quarter numbers from Q3 2012, with an overall decrease globally by two percent. EMEA and Latin America showed increases (13 percent and 19 percent respectively), while North America dropped 13 percent and Asia Pacific decreased 16 percent.
At the close of 2012, optimism returned to the M&A climate. The Q2 2012 DFI anticipated that dealmaking would see an increase several months down the line, as early-stage M&A had risen dramatically. In Q4 2012, those predictions were realized, with an 8% increase in announced M&A over Q4 2011. The DFI projects additional growth in the next several months.
Despite varied quarter on quarter numbers compared to Q4 2012, the DFI showed an 11 percent increase in M&A deal activity year-on-year. Most regions also showed a positive trend for Q4 2012 over Q4 2011 except North America, which dropped five percent. Latin American showed the strongest growth (31 percent), with similarly positive trends in Europe/Middle East/Africa (EMEA) (26 percent), and Asia Pacific (21 percent).
"This quarter has seen its share of distress-driven deals, but has equally witnessed the return of large-cap deals motivated by consolidation, geographical expansion, and opportunity," said Matt Porzio, vice president, M&A product marketing at IntraLinks. "Dealmakers are back at negotiating tables at the start of 2013, although they are still proceeding with caution. Economic woes are far from gone, and there is a very real chance that the climate may once again change. The market rushed into deals in Q2 2012 and that has been followed by several quarters of varied deal volume. Inorganic growth is an increasingly popular option for corporates and private equity firms must continue their investment cycles, and while we're optimistic given the newfound stability, it may result in slower growth until the second half of 2013."
IntraLinks' Deal Flow Indicator results are based on the company's involvement in a significant percentage of M&A deals in the early stages of each transaction, providing a leading perspective on global deal activity. IntraLinks has been a global provider of M&A virtual data rooms for more than 10 years, providing a cloud-based platform that accelerates deals from the beginning to the end of the process. In today's economy, the ability to conduct due diligence on opportunities around the world and execute on deals that achieve value requires a concentrated strategy.
IntraLinks Holdings, Inc. (NYSE: IL) is a leading, global technology provider of inter-enterprise content management and collaboration solutions. Through innovative Software-as-a-Service solutions, IntraLinks solutions are designed to enable the exchange, control, and management of information between organizations securely and compliantly when working through the firewall. More than 2 million professionals at 800 of the Fortune 1000 companies depend on IntraLinks' experience. With a track record of enabling high-stakes transactions and business collaborations valued at more than $19 trillion, IntraLinks is a trusted provider of easy-to-use, enterprise strength, cloud-based collaboration solutions. For more information, visit www.intralinks.com.
About the IntraLinks Deal Flow Indicator
The IntraLinks Deal Flow Indicator (the "DFI") is intended to provide 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 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 reported by market data providers and should not be construed to represent the volume of transactions ultimately consummated during any period of time. In addition, the statistics provided by such market data providers may be compiled with a different set of transaction types than those set forth above. For more information about the DFI, please visit http://www.intralinks.com/knowledge/intralinks-deal-flow-indicator.
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' VIRTUAL DATA ROOM PLATFORM 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 OR FUTURE PERIOD. THESE MATERIALS ARE NOT INTENDED TO CONVEY INVESTMENT ADVICE OR SOLICIT INVESTMENTS OF ANY KIND WHATSOEVER.
"INTRALINKS" AND THE INTRALINKS LOGO ARE THE REGISTERED TRADEMARKS OF INTRALINKS, INC. THE INTRALINKS DEAL FLOW INDICATOR MAY BE USED SOLELY FOR PERSONAL, NONCOMMERCIAL USE. THE CONTENTS OF DFI MAY NOT BE REPRODUCED, DISTRIBUTED OR PUBLISHED WITHOUT THE 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 the DFI and 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 our 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 (the "SEC") from time to time, including its Annual Report on Form 10-K for the year-ended December 31, 2011 and subsequent quarterly reports.
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.
SOURCE IntraLinks Holdings, Inc.