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Consumer Sector Merger and Acquisition Deal Value Declines by 50% YoY to $138 Bn

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There was a considerable decline in the number and value of merger and acquisition (M&A) deals announced in the consumer sector since the start of the year.

According to the research data analyzed and published by Stock Apps, there were a total of 2,244 deals announced during the first nine months of 2020. Compared to the 2,922 deals announced during a similar period in 2019, that marked a 23.2% decline YoY.

Consumer M&A Deals From 2019 to 2020

Consumer Sector Merger and Acquisition Deal Value Declines by 50% YoY to $138 Bn Brandspurng
Source: GlobalData

Deal value dropped even more significantly, reaching $138 billion in the same period. That was a 50.3% decline from the $278 billion recorded in the first nine months of 2019.

Goldman Sachs took the lead globally in terms of value, advising on a total of 23 deals valued at a cumulative $21.1 billion. On the other hand, PwC led in terms of transaction volume, advising on 25 deals worth $3.5 billion.

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Morgan Stanley ranked second in terms of deal value, advising on 15 deals worth a total of $20.1 billion. JP Morgan Chase and Citi both advised on 9 deals, worth $17.1 billion and $15.4 billion respectively.

PwC did not make it to the list of top 10 advisers by deal value due to the fact that it was involved in low-value transactions. Of the top ten advisers by deal volume, only three made it to that list.

Besides Goldman Sachs and Morgan Stanley, Evercore was the only other adviser on both lists, involved in 11 deals worth $9.8 billion.

APAC High-Value Deals Reach $392 Billion in Q3 2020, Highest on Record

Overall M&A activity in 2020 declined at a slower pace in the Asia Pacific (APAC) than it did in other major economies.

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During H1 2020, the deal value in the Asia Pacific (APAC) decreased by 17%, compared to 31% in Europe and 72% in the US according to Mergemarkets.

Similarly, in the period between Q1 and Q3 2020, deal volume in the APAC region slumped by 8% YoY according to EY. Comparatively, there was a 20% YoY drop in the US and 15% in Europe.

Notably, too, the rebound was faster in some regions of the APAC more than others. China is a case in point, where deal volume in March and April rose back to 2019 monthly average levels. And for H2 2020, it remained relatively consistent.

Global Data research backs up this claim, showing that in Q3 2020, China topped the region’s M&A deal activity. It had a 29.5% share of total deal volume during the quarter, followed by Japan at 15.9% and India at 15.7%.

Read Also:  Cause For Concern? The Top 10 Risks To The Global Economy

APAC M&A Deal Volume in Q3 2020

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Consumer Sector Merger and Acquisition Deal Value Declines by 50% YoY to $138 Bn Brandspurng1
Source: GlobalData
Chart

There was a total of 671 deals in APAC in the month of July, dropping slightly to 663 in August and further down to 616 in September. China took a 30.6% share of the deals in July, dropping to 27.9% in August and in September, rose slightly to 30.2%.

In terms of deal value, China had a 44.2% share during the quarter, followed by Japan at 25.9%. For the month of July, China had a lion’s share of the action, accounting for 78.9% of the $77.2 billion recorded in deal value.

Its share fell to 23.1% of the $48.9 billion received in August and rose to 25.8% in September, from a total of $89.7 billion.

Across APAC, M&A activity has shown resilience during the pandemic period. Some sectors in fact experienced growth during Q1 to Q3 2020. These include telecommunications, which grew by 19% year-over-year (YoY), life sciences at 9% and utilities at 9% as well.

In fact, APAC as a whole saw high-value deals reach $392 billion in Q3 2020, the highest Q3 figure on record. Megadeals ($10 billion or higher) increased the overall deal value in the quarter.

Valuation Multiples Drop from 13.8x to 10.5x from Jan. to Aug. 2020

Global M&A deal activity got off to a slow start in 2020 and the pandemic only served to accelerate the slump. According to Research Gate, April 2020 deal volume was 80% lower than in December 2019.

As of mid-September 2020, there had only been 15 mega deals, compared to 27 during the same period in 2019. None of the mega-deals surpassed $50 billion in value and only 10 were announced after March.

Valuation multiples also decreased considerably, with the median deal multiple at 10.5x during the first eight months of 2020. Comparatively, the same period in 2019 saw a median deal multiple of 13.8x.

Interestingly too, more companies are looking to explore alternative deals (42%) compared to those considering traditional acquisitions (39%). Alternative deals typically involve acquiring minority stakes or striking cooperative agreements (alliances, partnerships and joint ventures).

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Consumer Sector Merger and Acquisition Deal Value Declines by 50% YoY to $138 Bn - Brand Spur

Trend Micro Placed in 2021 Magic Quadrant for Endpoint Protection Platforms

Recognized for Completeness of Vision and Ability to Execute

 

HONG KONG SAR - Media OutReach - 13 May 2021 - Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cybersecurity leader, today announced that it has been positioned by Gartner as a Leader in the Magic Quadrant for Endpoint Protection Platform for its offering, Trend Micro Apex One. The evaluation was based on specific criteria that analyzed the company's overall completeness of vision and ability to execute.


Trend Micro is continually innovating and anticipating emerging threats. Our flagship Apex One endpoint protection platform features broad coverage against today's most critical threats. Our customers are protected using a range of techniques including virtual patching, which immediately protects against exploits until the vendor patch is applied.

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Read the full Magic Quadrant for Endpoint Protection Platform report at: https://resources.trendmicro.com/Gartner-Magic-Quadrant-Endpoints.html

"The endpoint has become a key battleground as determined threat actors try to take advantage of the pandemic to target distributed workforces and vulnerable remote access infrastructure. But throughout this difficult period, we've been there for our customers," said Wendy Moore, vice president of product marketing for Trend Micro. "I'm delighted to see us recognized again for doing what we do best: Protecting global organizations through innovative, cloud-first and platform-based security. We will continue to focus on offering simple, robust and industry-leading protection through our cybersecurity platform."

At the heart of the company's cybersecurity platform is Trend Micro Vision One, which delivers visibility and XDR using telemetry from Apex One in addition to email, servers, cloud workloads and networks for faster detections and investigations.

Magic Quadrant reports are a culmination of rigorous, fact-based research in specific markets, providing a wide-angle view of the relative positions of the providers in markets where growth is high and provider differentiation is distinct. Providers are positioned into four quadrants: Leaders, Challengers, Visionaries and Niche Players. The research enables you to get the most from market analysis in alignment with your unique business and technology needs.

* Gartner disclaimer: Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Trend Micro

Trend Micro, a global cybersecurity leader, helps make the world safe for exchanging digital information. Fueled by decades of security expertise, global threat research, and continuous innovation, Trend Micro's cybersecurity platform protects hundreds of thousands of organizations and millions of individuals across clouds, networks, devices, and endpoints. As a leader in cloud and enterprise cybersecurity, the platform delivers a powerful range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google, and central visibility for better, faster detection and response. With 7,000 employees across 65 countries, Trend Micro enables organizations to simplify and secure their connected world. www.trendmicro.com.hk


#TrendMicro


Consumer Sector Merger and Acquisition Deal Value Declines by 50% YoY to $138 Bn - Brand Spur
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Latest News

Trend Micro Placed in 2021 Magic Quadrant for Endpoint Protection Platforms

Recognized for Completeness of Vision and Ability to Execute

 

HONG KONG SAR - Media OutReach - 13 May 2021 - Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cybersecurity leader, today announced that it has been positioned by Gartner as a Leader in the Magic Quadrant for Endpoint Protection Platform for its offering, Trend Micro Apex One. The evaluation was based on specific criteria that analyzed the company's overall completeness of vision and ability to execute.


Trend Micro is continually innovating and anticipating emerging threats. Our flagship Apex One endpoint protection platform features broad coverage against today's most critical threats. Our customers are protected using a range of techniques including virtual patching, which immediately protects against exploits until the vendor patch is applied.


Read the full Magic Quadrant for Endpoint Protection Platform report at: https://resources.trendmicro.com/Gartner-Magic-Quadrant-Endpoints.html

"The endpoint has become a key battleground as determined threat actors try to take advantage of the pandemic to target distributed workforces and vulnerable remote access infrastructure. But throughout this difficult period, we've been there for our customers," said Wendy Moore, vice president of product marketing for Trend Micro. "I'm delighted to see us recognized again for doing what we do best: Protecting global organizations through innovative, cloud-first and platform-based security. We will continue to focus on offering simple, robust and industry-leading protection through our cybersecurity platform."

At the heart of the company's cybersecurity platform is Trend Micro Vision One, which delivers visibility and XDR using telemetry from Apex One in addition to email, servers, cloud workloads and networks for faster detections and investigations.

Magic Quadrant reports are a culmination of rigorous, fact-based research in specific markets, providing a wide-angle view of the relative positions of the providers in markets where growth is high and provider differentiation is distinct. Providers are positioned into four quadrants: Leaders, Challengers, Visionaries and Niche Players. The research enables you to get the most from market analysis in alignment with your unique business and technology needs.

* Gartner disclaimer: Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Trend Micro

Trend Micro, a global cybersecurity leader, helps make the world safe for exchanging digital information. Fueled by decades of security expertise, global threat research, and continuous innovation, Trend Micro's cybersecurity platform protects hundreds of thousands of organizations and millions of individuals across clouds, networks, devices, and endpoints. As a leader in cloud and enterprise cybersecurity, the platform delivers a powerful range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google, and central visibility for better, faster detection and response. With 7,000 employees across 65 countries, Trend Micro enables organizations to simplify and secure their connected world. www.trendmicro.com.hk


#TrendMicro


Consumer Sector Merger and Acquisition Deal Value Declines by 50% YoY to $138 Bn - Brand Spur
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