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EMS Merger and Acquisition Activity in Q01 Shows Expansion Drive: Lincoln International
May 5, 2010 |Estimated reading time: 1 minute
CHICAGO — There were 11 completed electronics manufacturer merger/acquisition (M&A) transactions in Q’01 2010, which shows an increase in the M&A activity compared to the previous four quarters. EMS companies are expanding well beyond their core manufacturing competencies. Overall, the economic conditions appear to have stabilized, creating created an opportunity for companies to pursue strategic investments within the EMS sector, according to this report from Lincoln International.
Vertical/horizontal convergences represented 7 transactions, 64% of total activity in Q’01 2010, up from 3 in Q’04 2009. The recent trend in vertical/horizontal convergences highlights a willingness to pursue expansion opportunities as some of these transactions were EMS companies expanding well outside of their core manufacturing activities. In addition, the trend indicates more interest in the EMS sector with non-EMS companies purchasing EMS capabilities.
There was 1 EMS consolidation in Q’01 2010, down from 3 in Q’04 2009. Similarly, there was 1 EMS divestiture (no divestures occurred in Q’04 2009). There was also one transaction classified as private equity investment
Transactions in Europe jumped sharply in Q’01. There was one cross-regional transaction. The report offers data on each region’s M&A activity in the EMS sector.
Learn more about M&A strategy in Growing Through Acquisition: Don’t Go It AloneIn the EMS business, like in any other, if you don’t grow, you shrink or die. The fastest way to grow and capture market share is to acquire another business. SMT Advisory Board member Gary Tanel talks about how successful larger businesses select the right acquisition to complement or extend what they already have.
To read the full Lincoln International report, visit http://pdf.lincolninternational.com/EMSElectronics/EMS2010/EMS_DealReader_Q12010.pdf or visit Lincoln International’s electronics industry page: http://www.lincolninternational.com/en/industries/electronics.html
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