After 2013’s resurgence making TMT sector the most active in Baltic M&A, by the end of Q3 2014 the deal value is just 2.1% away from matching the annual 2013 total
Global TMT (Technology, Media & Telecommunications) sector saw transactions worth USD 494.8bn during the first three quarters of 2014. This value represents a strong 20.4% increase compared to the same period last year, and marks the highest TMT value on Mergermarket record (since 2001) for a Q1 to Q3 period. After 2013’s resurgence making TMT sector the most active, in Q3 2014 the deal value is just 2.1% away from matching the annual 2013 total.
Source: Mergermarket
TMT has been a solid deal driver for global M&A value this year – it is the leading sector by value with a market share of 19.8% of total global M&A value
In terms of global deal value, TMT targets have attracted the most deals during any Q1-Q3 period on record. The 1,934 M&A deals so far this year represents 290 more transactions than during the same period last year (1,644 deals). TMT has been a solid deal driver for global M&A value this year – it is the leading sector by value with a market share of 19.8% of total global M&A value, and it is also the second most active sector by deal count.
Telecom M&A has been the dominant sub-sector targeted with USD 264.1m worth of assets acquired in 2014 so far, representing 53.3% of the total TMT value. Along with two large deals in US – acquisition of Time Warner by Comcast (USD 68.5bn) and acquisition of DirecTV by AT&T (USD 65.5bn) – Europe’s consolidation in the sector continued and helped the sector to see its value so far already surpass the whole of 2013 by 3.7%. Europe’s telco’s M&A value increased by 18.5% to USD 78.4bn during Q1-Q3 2014 from USD 66.2bn in the same period last year.
All three main regions have seen a higher deal count and value in the technology sector, which was also the most active sub-sector based on the number of announcements. Asia-Pacific has already seen more deals and a higher deal value than the whole of 2013 with 295 deals valued at USD 36.9bn, up from 246 deals worth USD 36.6bn.
In terms of regional breakdown, US lead the show with the 54.4% of total value of TMT transactions globally (see below), with Europe and Asia following. Principally, we could enjoy the same trends in the Baltics and CEE – TMT sub-sector M&A held 54% share in the Baltics alone.
Source: Mergermarket
The key areas, drivers and challenges for TMT M&A market for 2015:
- Telecoms: Further consolidation will definitely take place. Obviously there will be many in-sector transactions but most likely we will see much more FMC (Fixed-Mobile-Convergence) cases. The challenging question is ‘who will drive the next wave of consolidations – fixed or mobile operators?’.
- Infrastructure ownership: Many operators should be realising the value from towers and other such assets, but new network sharing models, and thus – joint ventures, will be seen, whereas investing into 4G (or already 5G?) and NGN should be challenging goal for market players.
- Convergence and media: Players will face more issues with delivering the content while leveraging the network – battle for profits from multimedia services and content will continue.
- Future of TMT: Most of the business models in telecom and media have become mature and exhausted, market will be driven by those players who will succeed in investing into innovation and adjacent markets, whereas technology is driving transactions from the cloud to M2M.
- Deal financing: We will see return of Private Equity, LBOs and IPOs, but can small regions (e.g. CEE, Baltics) really benefit from increasing equity tickets of “full-of-dry-powder” PE’s?
- Regulation and risk: How government policies and regulators can facilitate competition, innovation and growth?
For more information on M&A opportunities in the TMT sector please contact Mr Peep Põldsamm:
High M&A activity in TMT sector
/in /by Stanislav GutkevitshAfter 2013’s resurgence making TMT sector the most active in Baltic M&A, by the end of Q3 2014 the deal value is just 2.1% away from matching the annual 2013 total
Global TMT (Technology, Media & Telecommunications) sector saw transactions worth USD 494.8bn during the first three quarters of 2014. This value represents a strong 20.4% increase compared to the same period last year, and marks the highest TMT value on Mergermarket record (since 2001) for a Q1 to Q3 period. After 2013’s resurgence making TMT sector the most active, in Q3 2014 the deal value is just 2.1% away from matching the annual 2013 total.
Source: Mergermarket
TMT has been a solid deal driver for global M&A value this year – it is the leading sector by value with a market share of 19.8% of total global M&A value
In terms of global deal value, TMT targets have attracted the most deals during any Q1-Q3 period on record. The 1,934 M&A deals so far this year represents 290 more transactions than during the same period last year (1,644 deals). TMT has been a solid deal driver for global M&A value this year – it is the leading sector by value with a market share of 19.8% of total global M&A value, and it is also the second most active sector by deal count.
Telecom M&A has been the dominant sub-sector targeted with USD 264.1m worth of assets acquired in 2014 so far, representing 53.3% of the total TMT value. Along with two large deals in US – acquisition of Time Warner by Comcast (USD 68.5bn) and acquisition of DirecTV by AT&T (USD 65.5bn) – Europe’s consolidation in the sector continued and helped the sector to see its value so far already surpass the whole of 2013 by 3.7%. Europe’s telco’s M&A value increased by 18.5% to USD 78.4bn during Q1-Q3 2014 from USD 66.2bn in the same period last year.
All three main regions have seen a higher deal count and value in the technology sector, which was also the most active sub-sector based on the number of announcements. Asia-Pacific has already seen more deals and a higher deal value than the whole of 2013 with 295 deals valued at USD 36.9bn, up from 246 deals worth USD 36.6bn.
In terms of regional breakdown, US lead the show with the 54.4% of total value of TMT transactions globally (see below), with Europe and Asia following. Principally, we could enjoy the same trends in the Baltics and CEE – TMT sub-sector M&A held 54% share in the Baltics alone.
Source: Mergermarket
The key areas, drivers and challenges for TMT M&A market for 2015:
For more information on M&A opportunities in the TMT sector please contact Mr Peep Põldsamm:
PEEP
PÕLDSAMM
+37254510100
Send Email
New transaction: Sale of Rolvika
/in /by Stanislav GutkevitshLithuanian leading refrigeration equipment distributor was sold to Monilaite-Thomeko
Rolvika UAB, a Lithuanian company active in design and installation of refrigeration equipment divested to the Finnish Monilaite-Thomeko.
Keystone Advisers advised the shareholders of Lithuanian Rolvika group in the process of divesting the business to a Finnish company Monilaite-Thomeko. The transaction was completed on December 1st, 2014. Rolvika group will be integrated alongside already existing Monilaite-Thomeko operations in Baltics.
Rolvika group consists of Rolvika UAB, company active in design and installation of refrigeration equipment for commercial, industrial and public catering companies in Lithuania, Latvia and Belarus and Robiga UAB, manufacturer of stainless steel furniture. The consolidated revenue of the group was €12 million in 2013 with 200 people employed.
Monilaite-Thomeko is a leading importer and wholesale company active in equipment, material, appliances and accessories for the food retail, fast food and restaurant areas. The family owned company is present in Finland, Russia, Estonia, Latvia, Lithuania, Belarus and China. Total Monilaite-Thomeko turnover after this transaction will reach €45 million, 60% of which is generated in Baltics. The group will employ more than 400 employees. For more information please read transaction announcement by Monilaite-Thomeko.
The price of the transaction is not disclosed. Team of Keystone Advisers acted as exclusive financial adviser to the sellers. For more information please contact Mr Karolis Rūkas:
KAROLIS RŪKAS
+37052487677
Send Email
Announcement
01.12.2014
Monilaite-Thomeko acquires Rolvika
Monilaite-Thomeko Group has as of today acquired 100 % of Rolvika UAB´s shares. Rolvika is one of the leading refrigeration design and construction company in the Baltic countries. Rolvika´s subsidiary, Robiga UAB, is well known stainless-steel furniture manufacturer in the region.
The acquired companies are active in Lithuania, Latvia and Belarus. The acquisition will increase our market share as regards technical equipment, refrigeration and service for the retail and food industry sectors.
– We will complement each other perfectly and strengthen both equipment sales and service.
Rolvika and Robiga employ 200 people. Sales for 2014 is estimated to be 13 million EUR. Rolvika has subsidiaries in Latvia and Belarus. Rolvika´s refrigeration know how and Robiga’s stainless-steel furniture production is an opportunity and we will be able to provide more flexible and high quality solutions to all our customers. Monilaite-Thomeko Group will employ 400 persons and the sales will reach 45 million EUR.
– The customer of Rolvika´s as well as ours are the leading retail stores and food industry companies in the region.
The acquired companies will for the time being continue as independent subsidiary companies. The acquisition will not have any immediate effect on the number of employees.
Fred Ramberg will take position as chairman of the board of Rolvika and other members will consist of Jerker Molander and Rolvika`s current CEO Nedas Karklius.
For more information:
Fred Ramberg, CEO, Monilaite-Thomeko Group Oy
Tel. +358 500 460 944, fred.ramberg@mtoy.fi
—
Monilaite-Thomeko was founded in 1923. The company is specialized in supplying technical solutions, material and aftersales services to the daily consumer goods sector. It operates in Finland, Lithuania, Latvia, Estonia, Belarus and Russia. Main customers are food retail chains, fast food restaurant chains and food industry.
www.mtoy.fi
www.rolvika.lt
New transaction: Maag acquires Pouttu
/in /by Stanislav GutkevitshPress release 06.03.2013
The Estonian meat industry company Maag Lihatööstus has acquired 100 percent of the shares in Finland’s fourth-largest meat processing firm Pouttu.
“Pouttu is a well-functioning Finnish meat processing company that has a strong brand, dedicated and professional management and modern production,” chairman of the supervisory board of Maag Grupp Roland Sepp said.
“Next to an increase in production and sales volumes, Pouttu’s extensive meat processing experience and skills which we’ll be able to apply in Estonia from now on are of equal importance to us,” he added.
Founded in 1938, Pouttu is the oldest trademark in the Finnish meat industry. The company has a long history of customer relations with Finnish retail chains like Kesko, S-Group and Lidl. It also has a country-wide sales and distribution network and enjoys close cooperation with large HoReCa customers.
The turnover of the Pouttu meat factory based in Kannus 500 kilometers to the north of Helsinki was 61.4 million euros in 2012. The company employs 280 people.
Maag Lihatoostus is a holding of the food industry company Maag Grupp based on Estonian capital. The acquisition of Pouttu will lift the group’s sales to 174 million euros and increase its staff to 786.
Other companies in the Maag Grupp are Maag Piimatoostus, Maag Konservitööstus, Nigula Piim, Maag Food, and Gelid Food, as well as Avalon Foods in Poland.
The transaction was financed by Swedbank, with Keystone Advisers, Raidla Lejins & Norcous, Roschier and Grant Thornton acting as consultants.
New transaction: Alma Media divests BNS Group
/in Transactions, Transactions, Transactions, Transactions, Transactions /by Stanislav GutkevitshAlma Media divests BNS
Alma Media Corporation Press release
3 March 2014 at 13.20 EET
Alma Media’s Kauppalehti Group has sold its news agency and media monitoring business Baltic News Service (BNS) to Oü Uudisvoog which is owned by Koha Capital Oü, an Estonian venture capital company. The parties have agreed not to disclose the transaction value.
As a result of the transaction Alma Media will book a 0.8 MEUR sales gain into its first quarter 2014 profits. BNS operates in Estonia, Latvia and Lithuania and had an annual revenue of 4.2 MEUR in 2013. BNS was founded in 1990 and it became part of Alma Media in 1998.
– BNS has performed well in its own business. However, the synergies it has had with other businesses of Kauppalehti Group have remained limited. We will now focus on offering business media and digital services for companies, says Juha-Petri Loimovuori, Senior Vice President of Kauppalehti Group.
For more information, please contact: Juha-Petri Loimovuori, Senior Vice President of Kauppalehti Group, tel. +358 500 511 036, juha-petri.loimovuori@kauppalehti.fi
Alma Media in brief
Alma Media is a media company focusing on digital services and publishing. In addition to news services, the company’s products provide useful information related to lifestyle, career and business development. The services of Alma Media have expanded from Finland to the Nordic countries, the Baltics and Central Europe. The company employs 1,965 professionals (excluding distributors), of whom approximately one third work outside Finland. Alma Media’s revenue in 2013 totalled approximately MEUR 300. Alma Media’s share is listed on NASDAQ OMX Helsinki. Read more at www.almamedia.com
New transaction: EfTEN Real Estate fund acquires landmark hotel property in the hearth of Tallinn
/in /by Stanislav GutkevitshPress release, 20.02.2013
EfTEN Real Estate Fund and Vello Kunman’s AS Esraven purchased the property and operator of hotel Palace, situated at Tallinn Freedom Square, as a joint investment from Scandic Hotels AB.
Viljar Arakas, the CEO of EfTEN Capital, considers the investment unique. “Hotel Palace is an icon with its long history and unique location. Yet the last thorough renovation dates back to almost a quarter of a century and the life cycle of utility systems is reaching its final end. At this stage the hotel cannot be competitive in today’s market and needs full renovation. Our plan is to completely reconstruct and reopen hotel Palace is its former glory,” Arakas said.
EfTEN Real Estate Fund acquired the property and operator of hotel Palace with investor Esraven AS, part of Silikaat Group. Both parties have agreed to invest 50% of the full cost of the project. EfTEN Real Estate Fund and Silikaat Group have prior good cooperation experience with a joint investment in Pärnu – the Lepa Centre. Also, Vello Kunman is an investor at EfTEN Real Estate Fund and partner in the fund manager EfTEN Capital AS. The deal will close after obtaining an approval from Estonian Competition Authority. The volume of the deal remains confidential. Keystone Advisers as well as Nordeus law office acted as buy-side advisor for the sales transaction and Nordic Hotels Consulting and PwC Legal as sell-side advisor.
Hotel Palace is located in the heart of Tallinn at Vabaduse väljak 3 / Pärnu mnt 14. The building was built in 1937 and was already initially constructed as a hotel. The last full renovation of the building took place in 1989.
The acquisition marks the 15th object in EfTEN Real Estate Fund’s portfolio, with a total 83 000 m2 of rental area, divided into office, service, accommodation, warehousing and public sector of property.
EfTEN Real Estate Fund is established by EfTEN Capital AS, the fund manager, in year 2008. The fund invests in commercial real estate properties; a portfolio of commercial real estate has a total of 15 objects. EfTEN Capital AS is an asset management company founded in 2008, specialising in real estate investments. EfTEN Capital is licensed as a fund manager by Estonian FSA. The company also offers private portfolio management.
New transaction: Sale of Barrus
/in Uncategorized /by Stanislav GutkevitshArno Tammjärv, the owner of Estonian sawmill Barrus that manufactures window and door components in South Estonia, has sold the company to a Danish enterprise Inter-Invest A/S, writes aripaev.ee.
Although the purchase price is not public, it is estimated to have been between 50 million to 100 million kroons, based on the company’s economic results from recent years. Barrus ended last year with the turnover of 152 million kroons, an increase of 1.1 times from 2008. Janar Tammjärv who will continue as the CEO of Barrus, said that the turnover this year should exceed 200 million kroons or 25% more than last year.
The company founded in 1993 exports about 70% of its output, mainly window, door and staircase components, to Scandinavia, Holland, UK and Italy. It employs 116 employees.
Keystone Advisers acted as advisor to the seller in the turnaround and sale of the company.
New transaction: Sale of Ehituse ABC
/in /by Stanislav GutkevitshPress release 2008.04.09
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