© Connect Group (Illustration purposes only!) Electronics Production | August 22, 2011

EMS industry: M&A activity show slight decrease

There were 10 completed transactions in 2Q/2011, a slight decrease in the M&A activity compared to the 11 transactions in the previous quarter.
Continued improvements in the economy and the availability of debt financing have created opportunity for companies to pursue strategic investments within the EMS sector, writes analyst company Lincoln International.

EMS consolidations represented 40% of total activity in 2Q/2011 (4 transactions), the same amount as 1Q/2011. 3 transactions were classified as vertical / horizontal convergences in 2Q/2011. There were also 3 transactions classified as private equity investments in 2Q/2011.

There were neither OEM nor EMS divestitures in 2Q/2011. "The continued high level of EMS consolidations and vertical/horizontal convergences suggests electronics companies remain focused on using available cash to build on their core competencies and expand their overall business portfolio."

EMS M&A by Geography

- 3 transactions occurred within the U.S. / Canada (30% of total transactions)
- 5 European deals
- 1 transaction within Asia
- 1 cross-border transactions

Transactions by size for the quarter

- 5 Mid Tier transactions (50% of all transactions)
- 4 Small Tier transactions (approximately 40%)
- 1 Large Tier transaction (approximately 10.0% of the total)


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