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© Flextronics Electronics Production | February 10, 2010

Lincoln: EMS transactions halved in 2009

The recessionary year 2009 only saw 24 completed EMS transactions, half of the 48 recorded in 2008, reports Lincoln International.
”Contrary to previous years, vertical/horizontal convergences were the most common type of transaction with 12 transactions in 2009, or 50% of total activity, compared to 17 transactions in 2008 which represented just 35% of activity last year”, a release states.

Of those 24 EMS transactions completed in 2009, 6 were consolidation transactions (25% of the total); a figure considerably below the 19 consolidations (40% of the total) recorded the year before. Divestures were only slightly down – 3 transactions (13% of the total) compared to 5 transactions in 2008 (10% of the total). There was only 1 private equity investment in 2009 (representing 4% of the total), compared to 3 transactions in 2008 (6% of the total).

Lincoln expects that this decrease was due in part to the market conditions and the lack of financing availability for most of 2009. Only 1 OEM divestiture was accounted for in 2009, compared to four in 2008. As a percentage of total transactions, OEM divestitures went from 8% in 2008 to 4% in 2009.


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Transactions for all of 2009 were again led by the Micro Tier, totalling 11 (or around 46% of all transactions). This was followed by Large Tier and Small Tier EMS-providers, which closed 6 transactions each (or 25% of the total each) However, for the Mid Tier only 1 transaction (or 4% of the total)was recorded in 2009, Lincoln International concludes.
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