SS&C Intralinks Predicts M&A Slows in Q2 2022; Overall Volumes Keep Pace with Previous Year

Rhea-AI Summary

SS&C Technologies (Nasdaq: SSNC) released its Q2 2022 SS&C Intralinks Deal Flow Predictor, forecasting a decline in M&A activity compared to Q1 2022 across most regions, except for Europe, the Middle East, and Africa, where growth is expected. North America anticipates a slight decrease of 5% from Q1 but a 5-10% increase year-over-year. Asia Pacific and Latin America are expected to underperform, with minimal changes. Despite geopolitical tensions affecting Eastern Europe, global deal flow remains steady. SS&C Intralinks has facilitated USD 35 trillion in financial transactions.

Positive

• North America forecast expects a year-over-year increase of 5-10% in M&A activity.
• Europe, the Middle East, and Africa forecast growth between 5-10% compared to Q2 2021.

Negative

• Overall M&A volume forecast declines in Q2 2022 quarter-over-quarter across most regions, except Europe, the Middle East, and Africa.
• North America expected to decline 5% compared to Q1 2022, ending a series of record dealmaking quarters.
• Asia Pacific and Latin America projected to underperform against Q1 2022.

WINDSOR, Conn., April 7, 2022 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced results from the Q2 2022 SS&C Intralinks Deal Flow Predictor, a quarterly publication of future mergers and acquisitions (M&A) announcements.

"Omicron, inflation and supply-chain woes converged in Q4 2021 to limit M&A volume that had seen a series of consecutive record dealmaking quarters," said Bob Petrocchi, Co-Head, SS&C Intralinks. "From our vantage point, the markets are still healthy, and global M&A announced volume will keep pace with this period last year. However, for Q2 2022, we forecast M&A volume declines in quarter-over-quarter activity in all regions except Europe, the Middle East and Africa, based on our insights into pre-announced activity."

While the impact of the situation in Eastern Europe is being calculated from an economic standpoint, global deal flow is holding steady as M&A deal makers are factoring in geo-politically induced volatility.

Regional market forecasts for Q2 2022 M&A activity:

• Asia Pacific will underperform against Q1 2022, with announced deal volume forecast to decline by less than 5 percent while remaining flat compared to the same period in 2021.
• Europe, the Middle East and Africa are forecast to remain flat against Q1. However, the region's announced volume is expected to show growth of between 5 and 10 percent compared to Q2 2021. Though the data analysis was conducted before the Russian Federation invaded Ukraine, from a total regional perspective in Europe, issues such as inflation and supply-chain challenges are currently outweighing any concerns related to the invasion.
• Latin America is forecast to underperform against the previous quarter, declining less than 5 percent and remaining flat against this period last year.
• North America's announced volume is expected to increase by 5 to 10 percent against the same quarter last year. Still, it is also forecast to decrease 5 percent compared to the previous quarter, ending multiple record dealmaking quarters.

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, enabling and securing the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed 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 18,000 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 SS&C's forecast for M&A activity in Q2 2022?

SS&C forecasts a decline in M&A activity for Q2 2022 across all regions except Europe, the Middle East, and Africa.

How does SS&C predict North America's M&A volume will change in Q2 2022?

North America is expected to experience a 5% decline from Q1 2022 but shows a 5-10% increase compared to the same quarter last year.

What trends are affecting M&A volumes according to SS&C's Q2 2022 report?

Factors such as geopolitical tensions, inflation, and supply-chain challenges are negatively impacting M&A volumes.

Which regions are expected to see growth in M&A activity according to SS&C?

Europe, the Middle East, and Africa are forecasted to see 5-10% growth in M&A activity compared to Q2 2021.