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EMS transactions double in 2010
"There were 46 completed EMS transactions in 2010, nearly doubling the 24 recorded in 2009", states merger & acquisition specialists Lincoln International.
Similar to previous years, vertical/horizontal convergences were the most common type of transaction, accounting for 15 transactions (33% of total activity) last year. This compares to 12 completed transactions in this segment registered for 2009 (represented 50% of all activity in 2009).
© Lincoln International / Image has a Zoom-Function In 2010, there were 13 EMS consolidation transactions (28% of total activity), a significant increase from 6 transactions recorded in 2009 (25% of all activity). However, the number of EMS consolidations is still lower than than that recorded for 2008 and 2007.
Private equity investments follow next, with 8 recorded transactions (17% of total activity). This compares to 2 transactions in 2009 (8% of total). Last are EMS divestiture transactions, with 7 transactions recorded (15%), compared to 3 in 2009 (13%) and OEM divestitures transactions with 3 recorded transactions in 2010 (7%), compared to 1 transaction in 2009 (4%).
Transactions for all of 2010 were led by the Small Tier, totaling 38, or approximately 83% of transaction activity. Large Tier EMS providers closed seven transactions, representing approximately 15% of the total. Mid Tier providers added just one transaction, representing approximately 2% of the total, Lincoln International continue.
© Lincoln International / Image has a Zoom-Function In 2010, there were 13 EMS consolidation transactions (28% of total activity), a significant increase from 6 transactions recorded in 2009 (25% of all activity). However, the number of EMS consolidations is still lower than than that recorded for 2008 and 2007.
Private equity investments follow next, with 8 recorded transactions (17% of total activity). This compares to 2 transactions in 2009 (8% of total). Last are EMS divestiture transactions, with 7 transactions recorded (15%), compared to 3 in 2009 (13%) and OEM divestitures transactions with 3 recorded transactions in 2010 (7%), compared to 1 transaction in 2009 (4%).
Transactions for all of 2010 were led by the Small Tier, totaling 38, or approximately 83% of transaction activity. Large Tier EMS providers closed seven transactions, representing approximately 15% of the total. Mid Tier providers added just one transaction, representing approximately 2% of the total, Lincoln International continue.
