Transaction Trends Danish M&A Update - Q1 2021 - EY
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Transaction Trends Danish M&A Update – Q1 2021
Very high deal activity in Denmark in Q1 2021
After a remarkable year following the COVID-19 outbreak, the Last twelve months number of transactions by industry in Denmark Last three years EV/EBITDA by industry in Denmark (median)
Source: Mergermarket Source: Mergermarket
market is at a very high level of deal activity. The number of
announced deals has increased significantly by c. 72% compared
Automotive & Automotive &
to Q1 2020. Increase in number of deals is mainly driven by 28 9.6x
Transportation Transportation
significant increase in the TMT sector, where deal activity has Business & Prof. Business & Prof.
31 9.0x
increased by c. 79%. Services Services
Consumer Consumer
During the first quarter of 2021, 119 The overall number of deals in the Danish 29 11.3x
Products Products
transactions involving Danish companies market in LTM Q1 2021 was 371 Engineering & Engineering &
53 12.7x
have been announced. This is four deals compared to 290 in LTM Q1 2020. Q1 Ind. Products Ind. Products
more than the previous quarter and 50 2021 hence confirmed the trend of high Financial Financial
20 6.2x
Services Services
deals more than last year’s first quarter deal activity post the COVID-19 slowdown
Life Sciences 35 Life Sciences n.a.
signalling that the high activity level in Q4 in the 1st half of 2020.
2020 continues and is not only a timing
Deal activity in 2021 is expected to Power & Utilities 29 Power & Utilities 4.4x
effect from the Covid-19 slowdown in Q2
remain at a high level, especially given
2020. Real Estate 23 Real Estate 12.3x
the expected vaccination progressions
While the domestic and inbound deals throughout Europe and associated easing TMT 113 TMT 14.3x
both increased significantly since Q4 of COVID-19 restrictions by governments.
Travel, Leisure & Travel, Leisure &
2020, respectively by 14% and 19%, there 10 10.7x
According to Kevin Brunner, who co-leads
Tourism Tourism
is a decline in outbound deals of c. 25%.
Americas M&A at Bank of America, deal Note: EV/EBITDA by industry are only considering deals where target is based in Denmark.
Number of transactions by transaction type EV/EBITDA multiple is not available for Life Science due to low sample size.
In terms of transactions by industry, TMT making has become more efficient due to Source: Mergermarket
LTM
had the highest deal activity with 43 video conferencing. “You can do three or 115 119
120 112 400
deals compared to 30 deals last quarter. four meetings in a day without having to 100 91
83 89 36 41
48 79 300
Life Sciences was the industry with travel,” he said “and more importantly it 80 73 74 74 69
38 25 29
second most deal activity with 12 deals in has allowed key decision makers to attend 58 30
60 29 28 25 21 43 200
51
Q1 2021, which is double up on the and participate.” 40 26 34 36 39 27
24 25 30 29 32 100
activity compared to 6 deals in Q4 2020. 20 13
27 24 28 36 27
21 20 21 19 19 18 17
0 0
Transaction Trends, published by EY Strategy and Transactions, is a 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21
quarterly publication that aims to identify trends in the Danish 310 321
transactions market. Data presented in this newsletter covers all
Domestic Inbound Outbound LTM
transactions announced and registered in Mergermarket where Danish
Note: Domestic deals refer to deals where both, target and buyer are based in Denmark. Inbound and outbound deals, on the oth er hand, refer to deals where a Danish target was acquired or Danish buyers acquired a
companies have participated as either target, buyer or vendor. foreign target respectively.
Transaction Trends 2nd edition 2021 | 2Q1 2021 saw two TMT deals in Top 5
Target region – Danish Buyers Top announced transactions last quarter (by deal value, USDm)
Source: Mergermarket Source: Mergermarket, CVR Virk, Capital IQ
Q1 2021 LTM Target
Ann. Date Target Vendor Buyer Deal dom. Industry Deal value*
Turnover
3% 1%
8% 2%
2% 8 Jan Stark Group A/S Lone Star Funds CVC Capital Partners Limited Real Estate, Hospitality & Construction USD 3,060m USD 4,822m
11%
EQT Partners AB; IDInvest
Partners; Balderton Capital (UK)
19% 28 Jan Peakon ApS Workday, Inc. TMT USD 700m Not disclosed
LLP; Sunstone Life Science
13% Ventures A/S; Atomico
56% 23 Mar LEO Pharma A/S The LEO Foundation Nordic Capital Life Sciences USD 535m USD 1,663m
58%
Vestjysk Bank A/S (67.6% Nykredit Realkredit A/S; AP
24 Mar Arbejdernes Landsbank A/S Financial Services USD 458m Not disclosed
13% Stake) Pension Livsforsikrings A/S
15%
Accel; Trifork A/S; Dell
18 Feb Humio Ltd. Technologies Capital; West Hill CrowdStrike Holdings, Inc. TMT USD 400m Not disclosed
Capital LLP
Denmark Europe (excl. Nordics) Asia-Pacific *Mergermarket definition
Nordics (excl. Denmark) Americas Other
On 8 January 2021, CVC Capital Partners has agreed to acquire Stark Group, treatments of thromboembolisms, from The LEO Foundation. The LEO
Buyer region – Danish Targets a Denmark-based leading distributor of heavy building materials in Northern Foundation will remain as the majority owner.
Source: Mergermarket Europe, from Lone Star Funds. With the acquisition, CVC Capital Partners will
On 24 March 2021, Arbejdernes Landsbank A/S has agreed to acquire a
Q1 2021 LTM contribute with industry expertise and strategic insights to develop and
67.6% stake in Vestjysk Bank A/S from Nykredit Realkredit A/S and AP
expand Stark Group.
3% 3% Pension Livsforsikrings A/S. The acquisition will enable Arbejdernes
0% 7% 1%
15% On 28 January 2021, a consortium of investors in Peakon ApS, a Denmark- Landsbank to expand its geographical presence and strengthen its financial
based worker survey software firm, have agreed to sell their stakes to position.
41% Workday, a California-based provider of enterprise cloud applications for
23% On February 18 2021, CrowdStrike Holdings, Inc. has agreed to acquire
46% finance and human resources. The acquisition of Peakon allows Workday to
Humio Ltd., a UK-based company engaged in providing real-time log analysis
provide organisations with a continuous listening platform, including real-time
platform for on-premises and cloud infrastructures, from group shareholders.
24% visibility into employee experience, sentiment and productivity.
The acquisition enables CrowdStrike to expand its existing capabilities.
On 23 March 2021, Nordic Capital agreed to acquire a minority stake in LEO
21% Pharma A/S, a Denmark-based pharmaceutical company focused on
16%
developing, manufacturing and marketing dermatology and parenteral
Denmark Europe (excl. Nordics) Asia-Pacific
Nordics (excl. Denmark) Americas Other
Transaction Trends 2nd edition 2021 | 3Increasing trend in the share of public deals
Transaction type by number of transactions Transaction arena by number of transactions
Source: Mergermarket Source: Mergermarket
Domestic Inbound Outbound Public Private
Q1 2021 34% 43% 23% Q1 2021 45% 55%
LTM 36% 37% 26% LTM 42% 58%
2016 - YTD 36% 39% 25% 2017 - YTD 33% 67%
Note: Domestic deals refer to deals where both, target and buyer are based in Denmark. Inbound and outbound deals, on the oth er hand, refer to deals Note: Public deals refer to deals where either target, bidder or seller are public, i.e. a listed company.
where a Danish target was acquired or Danish buyers acquired a foreign target respectively.
Activity by target industry
Source: Mergermarket
Number of transactions
Target industry Last quarter LTM 2020 Avg. 2016 - 2020 LTM trend
Automotive & Transportation 6 28 33 21
Business & Professional Services 10 31 40 36
Consumer Products 8 29 33 41
Engineering & Industrial Products 10 53 62 63
Financial Services 7 20 23 17
Life Sciences 12 35 41 24
Power & Utilities 11 29 30 16
Real Estate, Hospitality & Construction 8 23 31 22
TMT 43 113 137 83
Travel, Leisure & Tourism 4 10 10 12
Total 119 371 440 335
Note: Trend indicators refer to the comparison between the LTM vs. the avg. 2016 – 2020 number of transactions.
Transaction Trends 2nd edition 2021 | 4Four new listings on First North in Q1 2021
New Listings at Nasdaq Copenhagen Issues by Value, Nasdaq Copenhagen Foreign exchange rates (indexed)
Source: Nasdaq Nordics Source: Capital IQ, Mergermarket Source: Capital IQ
Main market 1.2
3 Private Placement IPO
First North
SEO Spin-Off/Split-Off 1.1
2 Buyback DKK/USD
1.0
DKK/SEK
80 76.4
68.1 0.9 DKK/GBP
60.8
60 56.4
11 0.8
48.5 47.1
3 3 9 38.1
2 0 40 36.1 0.7
2 4 20 0.6
3 3 3
2 2
1
0 0 0 0.5
2014 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021
2013 2014 2015 2016 2017 2018 2019 2020 2021
OMX C20 Index Avg. multiples of listed Danish companies
Source: Capital IQ Source: Capital IQ
Nasdaq Copenhagen (“CSE”) saw four new listings on First North and no new
1,600 listings on the main market in the first quarter of 2021.
35.7x
1,500
35.4x The companies listed on First North in the first quarter of 2021 are Nexcom A/S
1,400 (27 January), BactiQuant A/S (5 February), Valuer A/S (22 February) and Risma
P/E 33.6x
1,300 Systems A/S (23 March).
30.8x
Nexcom, Valuer and Risma Systems are all software companies, whereas
1,200
32.3x
BactiQuant has developed a product for automated monitoring of the bacterial
1,100
Q1 2021 content in water to support managing water in a greener and more sustainable
1,000 4.0x 2020 way, as well as increasing the safety of drinking water production.
900 4.1x 2019
P/BV 4.2x 2018 The OMX C20 decreased slightly by 1.1% during the first quarter of 2021, but
800
Jan/20 Mar/20 May/20 Jul/20 Sep/20 Nov/20 Jan/21 Mar/21 2017 showed a rather stable trend throughout the first quarter of 2021 with an
4.4x
absolute volatility of DKK 149 ranging between DKK 1,365 and DKK 1,513.
4.5x Compared to first quarter of 2020, the index has since increased by 37.1%.
Transaction Trends 2nd edition 2021 | 5Contact list – EY Strategy and Transactions
Strategy Transaction Diligence Corporate Finance
Nicolai Strate Søren P. Krejler Lars Lyster Peter Vejlgaard Martin Wiig Nielsen
Nicolai.Strate@dk.ey.com Søren.P.Krejler@dk.ey.com Lars.Lyster@dk.ey.com Peter.Vejlgaard@dk.ey.com Martin.Wiig.Nielsen@dk.ey.com
+45 22 70 64 88 +45 25 29 37 26 +45 30 70 04 12 +45 20 40 80 41 +45 91 97 66 66
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+45 25 29 35 69 +45 25 29 34 91 +45 51 58 29 31 +45 30 93 52 17
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Operations and Tech Transaction Tax Valuation, Modelling & Real Estate
Mads.k.steensen@dk.ey.com
+45 25 29 31 27 Anders L. Tuxen Carina Maria G. Korsgaard Michael Bruhn Jacob Erhardi
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+45 25 29 44 62 +45 25 29 37 64 +45 25 29 31 35 +45 25 29 39 05
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Transaction Trends 2nd edition 2021 | 6About this publication EY | Assurance | Tax | Strategy and Transactions | Consulting
Transaction Trends is a quarterly publication that aims to identify trends in the Danish transactions market. Transactions co vered
in this publication are public and private transactions announced by all Danish companies, defined as a transaction where either About EY
the buyer, target or vendor company is a Denmark based company. Public transactions are defined as transactions where either EY is a global leader in assurance, tax, transaction and advisory services. The
the buyer, target or vendor company is listed on a public stock exchange. All other transactions have been classified as private. insights and quality services we deliver help build trust and confidence in the
Domestic transactions are defined as transactions conducted within a national boundary, i.e. deals involving two or more capital markets and in economies the world over. We develop outstanding
incumbent nationals, while cross border transactions involve companies from at least two different nationalities. Deal Value is leaders who team to deliver on our promises to all of our stakeholders. In so
taken as the sum of the consideration paid by the acquirer for the equity stake in the target plus the value of the net debt in the doing, we play a critical role in building a better working world for our people,
target, where applicable. Inclusion of net debt in the deal value will depend on the stake acquired or the target company typ e. for our clients and for our communities.
Transaction Statistics are based on Mergermarket and EY data. Public market data are sourced from S&P Capital IQ and Nasdaq. EY refers to the global organization, and may refer to one or more, of the
member firms of Ernst & Young Global Limited, each of which is a separate
Transaction Trends is published by EY Strategy and Transactions. legal entity. Ernst & Young Global Limited, a UK company limited by
guarantee, does not provide services to clients. For more information about
our organization, please visit ey.com.
© 2021 EY Godkendt Revisionspartnerselskab
CVR no. 30700228
All Rights Reserved.
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