SS&C Intralinks Sees M&A Deal Flow Uptick in North America

Rhea-AI Summary

SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) has released its Q3 2024 global and regional M&A predictions through the SS&C Intralinks Deal Flow Predictor. The report indicates a neutral outlook for global Q3 2024 M&A volume, with North America showing signs of growth while other regions remain flat. Key highlights include:

- North America: Strong pre-announced deal volume in Q1 2024, expected to continue throughout 2024
- Asia Pacific: Upward trajectory at the end of Q1, with Australia, Hong Kong, and Japan performing well
- Europe, Middle East, and Africa: Anticipated rebound in H2 2024, but no significant rise in activity expected
- Latin America: Growing interest from foreign investors, with Brazil, Chile, and Colombia showing solid early-stage activity

The SS&C Intralinks Deal Flow Predictor forecasts M&A announcements by tracking early-stage activity from the previous four quarters, typically six months ahead of public announcements.

Positive

• Strong pre-announced deal volume in North America, expected to continue throughout 2024
• Upward trajectory in Asia Pacific markets at the end of Q1 2024
• Growing foreign investor interest in Latin America, driven by potential for high returns

Negative

• Flat M&A volumes expected globally in Q3 2024, except for North America
• Europe, Middle East, and Africa experienced volume declines in Q1 2024
• No significant rise in M&A activity anticipated in Europe, Middle East, and Africa for H2 2024

Insights

Financial Analyst

The latest insights from SS&C Intralinks provide a mixed outlook on global M&A (Mergers and Acquisitions) activity, influenced by macroeconomic factors and regional economic conditions. In North America, the anticipated decline in interest rates and stable macroeconomic conditions are fostering a favorable environment for dealmakers. This optimism is reflected in an expected continued increase in deal activity for H2 2024. For retail investors, this signals potential growth opportunities in sectors highly engaged in M&A activities, such as technology and healthcare.

On the other hand, other regions including Asia-Pacific and Europe face more challenges, with geopolitical uncertainties and economic stressors creating a less predictable environment. This contrast highlights the importance for investors to consider regional economic conditions when evaluating global M&A prospects.

Additionally, the steady performance in Latin America suggests growing investor interest driven by high return potential. For investors, understanding these regional dynamics is key to capitalizing on M&A trends and identifying sectors or companies that may benefit from increased deal flow.

Market Research Analyst

The SS&C Intralinks Deal Flow Predictor provides valuable insights into the future landscape of M&A activity. North America's strong performance indicates confidence among dealmakers, suggesting a possible surge in market consolidation and strategic partnerships. This could lead to significant value creation opportunities for companies involved, potentially driving up their stock prices in the short to medium term.

In Asia-Pacific, despite initial headwinds, markets like Australia, Hong Kong and Japan show signs of resilience and growth. This region's ability to rebound can attract investors looking for opportunities in recovering markets. Meanwhile, Europe's mixed performance and Latin America's steady uplift highlight the need for investors to stay informed about regional economic indicators and geopolitical developments.

For retail investors, keeping an eye on early-stage M&A activities and regional forecasts can help in identifying emerging opportunities and making informed investment decisions.

Mixed signals outside of North America as economic uncertainty and cautious optimism permeate sentiment

WINDSOR, Conn., July 18, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced Q3 2024 global and regional predictions from the SS&C Intralinks Deal Flow Predictor, a quarterly publication of future mergers and acquisitions (M&A) announcements.

"In the first half of the year, M&A market conditions were influenced by the anticipation of declining interest rates, ongoing geopolitical developments and evolving fiscal policies in major economies," said Bob Petrocchi, Co-Head of SS&C Intralinks. "Now, we see signs of stabilization as dealmakers adapt to new realities and seek growth opportunities through strategic acquisitions. While we do not anticipate a significant acceleration of deal flows, we remain optimistic about M&A activity across the board in H2."

Regional market forecasts for Q3 2024 M&A activity:

• Globally, M&A volumes are expected to be flat in all regions except North America. We are forecasting a neutral outlook for global Q3 2024 volume.
• Asia Pacific faced the most significant headwinds of any region in Q1 2024. However, the markets ended the quarter on an upward trajectory. Australia, Hong Kong and Japan all performed well, suggesting sustained growth.
• Europe, the Middle East and Africa experienced volume declines on quarterly seasonality and early stressors, with only Italy, Austria, Germany and Saudi Arabia seeing positive movement in Q1 2024. While we anticipate the territory to rebound in H2 2024, we don't expect a significant rise in activity.
• Latin America saw an early and steady uplift in Q1 2024. Brazil, Chile, and Colombia all saw solid early-stage activity. The region is seeing growing interest from foreign investors, driven by the potential for high returns.
• North America's pre-announced deal volume in Q1 2024 remained strong. Dealmakers are seemingly comfortable with macroeconomic conditions and confident of coming rate cuts, accelerating deal activity. The trend is expected to continue throughout 2024.

The SS&C Intralinks Deal Flow Predictor forecasts the number of future M&A announcements by tracking early-stage M&A activity from the previous four quarters, defined as new sell-side M&A transactions that are in preparation or have begun their due diligence stage. On average, early-stage deals are six months away from public announcement.

SS&C Intralinks is a pioneer of the virtual data room, delivering software-enabled services across the entire deal lifecycle, including deal marketing, deal prep, due diligence, insights and post-merger integration. Intralinks technology enables and secures the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed more than USD 35 trillion worth of financial transactions on its platform.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Additional information about
SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

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SOURCE SS&C

FAQ

What is the Q3 2024 global M&A outlook according to SS&C Intralinks (SSNC)?

According to SS&C Intralinks (SSNC), the global M&A outlook for Q3 2024 is neutral, with flat volumes expected in all regions except North America.

Which region showed the strongest M&A activity in Q1 2024 for SS&C Intralinks (SSNC)?

North America showed the strongest M&A activity in Q1 2024, with SS&C Intralinks (SSNC) reporting strong pre-announced deal volume expected to continue throughout 2024.

How does SS&C Intralinks (SSNC) forecast future M&A announcements?

SS&C Intralinks (SSNC) forecasts future M&A announcements by tracking early-stage M&A activity from the previous four quarters, typically six months ahead of public announcements.

What is the outlook for M&A activity in Latin America according to SS&C Intralinks (SSNC)?

SS&C Intralinks (SSNC) reports growing interest from foreign investors in Latin America, with Brazil, Chile, and Colombia showing solid early-stage activity, driven by the potential for high returns.