Cisco Ties IBM for Second Place in Tech Deal Making
Cisco System's $2.4 billion acquisition of Sourcefire Inc pushes the San Jose, California based networking and communications manufacturer into second place for all-time technology acquisitions over the past two decades. Cisco is currently tied with IBM with 164 worldwide technology deals since 1993. Microsoft Corp leads in overall tech deal making with 174 deals. Worldwide technology deal making, which accounts for 7.2% of overall M&A this year, totals $84.3 billion for year-to-date 2013, a 19% decline compared to last year at this time.
Bank of America Merrill Lynch leads the year-to-date worldwide technology M&A financial advisor rankings, up from sixth last year at this time. JP Morgan, an advisor to Cisco along with Centerview Partners, maintains the second place ranking.
Financials M&A Falls to 11-Year Low
The $2.3 billion acquisition of Capitalsource Inc by PacWest Bancorp brings the volume of deal making in the financial sector to $133.0 billion for year-to-date 2013, a 25% decrease compared to the year earlier period. This marks the slowest year-to-date period for M&A activity in the financial sector since 2002 ($82.7 billion). The United States, France and China account for 43% of financial M&A activity so far this year compared to 19% during year-to-date 2012. Bank M&A, which accounts for nearly one-third of financial M&A activity this year, has declined 58% from 2012 levels, while insurance M&A has increased 4% from last year and accounts for 21% of overall activity in the sector.
Morgan Stanley tops the ranking of financial advisors for financial M&A this year, up from sixth last year at this time. Goldman Sachs and JP Morgan round out the top three advisors.
Agency, Sovereign, Supranational DCM Flat
A trio of agency, supranational and sovereign bond offerings, from the United Kingdom, EFSF and Japan Bank for International Cooperation, topped the list of deals this week, pushing global agency/sovereign debt issuance to $751.8 billion for year-to-date, down less than 1% from last year at this time. The European Investment Bank, Germany's KfW and the European Financial Stability Facility (EFSF) account for 22% of activity this year. The United Kingdom and Italy are the top issuers of underwritten sovereign debt so far during 2013.
Deutsche Bank leads the ranking of agency/sovereign underwriters for year-to-date 2013, with 9.1% market share, up 1.0 percentage point from last year. HSBC and Goldman Sachs round out the top three, with Goldman Sachs moving from 10th place last year.