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Information technology, financial and real estate sectors cornered nearly 52 per cent of mergers and acquisitions (M&As) out of 68 deals during June and July, according to an Assocham Financial Pulse study.
International deals contributed 54.4 per cent to M&A activity in the past two months, followed by the domestic market at 20.6 per cent. Inbound deals – percentage of foreign companies that acquired Indian firms – comprised only 7.4 per cent of the total activity.
The IT sector witnessed a maximum buoyancy in M&A activity with a total of 18 deals finalised – one inbound, two domestic, three outbound and 12 international.
“This shows Indian companies are trying to gain entry into new markets, besides increasing the product and services portfolio,” said the Assocham Secretary-General, Mr D.S. Rawat.
Key deals
The key deals included acquisitions of Median AG by Lenovo, Echosign by Adobe and Gen-i Software Solutions by Infosys.
In the real estate sector, five international deals took place in the US.
Seven deals took place in the banking, financial service and insurance sectors, the important one's being EXL Service Holdings acquiring Outsource Partners, Northern Trust acquiring Band of Ireland Securities Services and IDBI acquiring Universal Commodity Exchange.
Key acquisitions in the telecom sector included Vodafone acquiring 22 per cent stake in Essar Communications for $3.32 billion and ICICI acquiring a stake in GTL.
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