An Acuris Company Finding the opportunities in mergers and acquisitions Global & Regional M&A Report 1Q19 Including League Tables of Financial Advisors mergermarket.com An Acuris Company Content Overview 03 Global 04 Europe 09 US 14 Latin America 19 AsiaPacific (excl. Japan) 24 Japan 29 Middle East & Africa 34 M&A and PE League Tables 39 Criteria & Contacts 73 mergermarket.com Mergermarket Global & Regional Global Overview 3 M&A Report 1Q19 Global Overview Regional M&A Comparison North America USD 439.7bn -4.1% vs. Q1 ‘18 Inbound USD 41.5bn -30.4% Outbound USD 68.3bn +15.5% PMB USD 139bn +44x Latin America USD 16.0bn -41.3% vs. Q1 ’18 Inbound USD 11.7bn +146% 15.3% Outbound USD 168m -61.1% Ind. & Chem. USD 4.4bn -72.3% Europe USD 122.9bn -54.7% vs. Q1 ‘18 1.0% Inbound USD 58.7bn -3.6% 54.9% 15% Outbound USD 41.9bn -28.3% Ind. & Chem. USD 31.6bn -25.7% 11.9% MEA USD 95.2bn +412.1% vs. Q1 ‘18 Inbound USD 17.7bn +42% Outbound USD 2.8bn -50.9% Ind. & Chem. USD 70.8bn +228x APAC (ex. Japan) USD 119.9bn -24.5% vs. Q1 ‘18 Inbound USD 19.9bn +29.8% 2.0% Outbound USD 16bn -10.3% Ind. & Chem. USD 21.5bn -11.2% Japan USD 7.8bn -14.2% vs. Q1 ’18 Inbound USD 2.2bn +95.2% Global M&A USD 801.5bn -15.1% vs. Q1 2018 Outbound USD 22.5bn +79.4% PMB USD 1.8bn +9.3x Cross-border USD 246.9bn -15% vs. Q1 2018 The % values on the map indicate Top sector: I&C USD 157.2bn +29.7% vs. Q1 2018 market shares in global M&A mergermarket.com Mergermarket Global & Regional Global Analysis 4 M&A Report 1Q19 Global Value Deal Details (USD bn) Announcement Bidder Company Target Company Target Target Sector Date Geography USD 801.5bn 89.5 3-Jan Bristol-Myers Celgene USA Pharma, Squibb Company Corporation Medical & Biotech Value of global M&A in 1Q19, down by 15% compared to 1Q18 70.4 27-Mar Saudi Arabian Saudi Basic Saudi Arabia Industrials & Oil Co Industries Chemicals Corporation (70% Stake) 42.6 18-Mar Fidelity National Worldpay USA Business Information Services Services USD 1 38.4 16-Jan Fiserv First Data USA Business Corporation Services 414.2bn Value of US M&A, up Number of cross- by 29% up on 1Q18 border megadeals 28.1 7-Feb BB&T SunTrust Banks USA Financial Corporation Services (> USD 10bn), out of 9 announced in 1Q19 mergermarket.com Mergermarket Global & Regional Global Analysis M&A Report 1Q19 Global After a peak in the M&A cycle during the first half of 2018, Jack Henry, or Hellman & Friedman-backed, Denmark-based mid-market targets also led to an increase in take-private greater market volatility, geopolitical tensions between the US Nets into play. deals globally. With 22 deals and a total value of USD 40.4bn, and China, Brexit anxiety in Europe, as well as strengthening take-private transactions conducted by private equity firms Winston-Salem, North Carolina-based BB&T’s USD 28.1bn bid economic headwinds continued to weigh down deal activity reached their highest Q1 value and volume since 2013, driven for Atlanta, Georgia-based SunTrust in February will create in the beginning of the year. Only 3,558 transactions worth by the by the USD 11.8bn acquisition of US-based Ultimate the 6th largest bank in the US and should trigger further M&A a total USD 801.5bn were registered in 1Q19, a 15% decrease Software Group by a Hellman & Friedman - Blackstone moves in the banking sector in the US. The same could be in value compared to 1Q18 (5,085 deals worth USD 943.5bn). consortium and the USD 6.5bn (EUR 5.7bn) public takeover said about Europe after Deutsche Bank and Commerzbank But pockets of consolidation in some particularly hot sectors, offer for Germany-based Scout24 by the same two lead confirmed they were in merger talks. UBS, BNP Paribas and vigorous private equity activity and a healthy domestic deal investors. Credit Suisse had earlier been named as alternative merger flow in the US should give hope to dealmakers for the rest of partners for Deutsche Bank. Perhaps benefitting from a High-profile trade sales such as KKR’s partial exit of First Data 2019. ripple effect of the corporate tax cut, the US showed strong to Fiserv in the US or the acquisition of Singapore-based Large cross-border deals, which propelled M&A activity in resistance, accounting for 51.7% of total global M&A value in property developer Ascendas-Singbridge by CapitaLand from the past five years, have almost disappeared. Only nine mega 1Q19, only the third time since 2007 that more than half of Temasek for USD 8.1bn has helped global exit activity reach deals (above USD 10bn) have been struck so far this year, global M&A has occurred in the US. USD 125.6bn in 1Q19, its highest Q1 value on record. down from 14 in 1Q18. All but two, Newmont’s acquisition of Cross border M&A accounted for only 30.8% global M&A Canada-based Goldcorp for USD 12.8bn and Saudi Aramco’s in 1Q19 (USD 246.9bn) compared to 38-40% on average acquisition of Saudi Basic Industries Corporation (Sabic) for “Vigorous private equity between 2015 and 2018. Outbound M&A from China and Hong USD 70.4bn were the result of US-based corporates taking Kong was particularly subdued, reaching its lowest level since out competitors in their home market. activity and a healthy 3Q14, at USD 12.1bn over 56 deals in 1Q19. In Europe, only 17 The largest deal of the year so far - Bristol-Myers Squibb’s deals were struck by acquirers from China and Hong Kong for domestic deal flow in USD 89.5bn bid for Celgene - illustrates the continued a total value of USD 2.3bn, the lowest quarterly value recorded appetite for transformative deals in the Pharma, Medical & since 4Q13. The deal flow from China into Europe could be the US should give hope Biotech (PMB) sector. Large pharma companies’ interest in further hit in the coming months by the recent announcement clearly-defined niches and specialty areas is expected to that the EU will set up a new foreign direct investment for the rest of 2019” further fuel healthcare dealmaking this year. screening framework to protect strategic sectors. The ongoing convergence between payment processors and Private equity firms continue to look for ways to deploy record financial software firms led Fiserv to buy First Data in an all- amounts of dry powder. But after four years of consecutive stock combination valued at USD 38.4bn and Fidelity National increases in both the volume and value of buyouts globally, Beranger Guille, Global Information Services (FIS) to acquire Worldpay for USD good assets are fewer and far between. Buyout activity 42.6bn in March. The rapid growth of the global online and therefore saw a marginal decrease in value - from USD Editorial Analytics Director card payment industry combined with the growing threat from 107bn in 4Q18 to USD 103bn in 1Q19 - but a significant drop start-ups could put other players such as US-based TSYS and in volume - from 920 to 629 deals. The scarcity of quality Mergermarket Global & Regional Global Analysis 6 M&A Report 1Q19 USD USD 89.5bn 30.8% Value of Bristol-Myers Squibb’s 153bn Share of cross-border M&A Value of Pharma, Medical & acquisition of Celgene, the largest Biotech (PMB) activity in 1Q19 deal in more than two years USD USD 51.7% 40.4bn 12.1bn US share of global M&A value, the highest since 4Q16 Value of PE-led take-private deals Value of China and Hong Kong outbound M&A, its lowest level since 3Q14 mergermarket.com Mergermarket.com Mergermarket Global & Regional Global Analysis 7 M&A Report 1Q19 Chart title 1 Chart title 1 ChartGlobal title Quarterly2 Breakdown Trend ChartGlobal title Sector 2 Breakdown Trend 2014 - 2019 1Q18 - 1Q19 500 4000 20000 450 18000 3500 400 1,199.5 1,120.0 733.2 16000 350 3000 825.8 14000 958.4 952.5 300 2500 Count Deal 788.0 12000 869.9 250 468.6 Deal Value (US$bn) Value Deal 2000 854.1 10000 877.5 713.2 Deal Value (US$bn) Value Deal 200 8000 1500 1,110.5 1,039.6 150 755.0 6000 963.1 1000 741.1 100 4000 205.9 157.2 133.2 500 943.5 121.2 153.0 758.8 2000 50 106.8 102.1 759.5 801.5 77.8 570.8 628.2 66.1 76.6 76.6 0 0 0 2014 2015 2016 2017 2018 2019 Industrials Pharma, Medical Business Financial Technology Other & Chemicals & Biotech Services Services Q1 Q2 Q3 Q4 1Q18 1Q19 Deal Count mergermarket.com Mergermarket Global & Regional Global Analysis 8 M&A Report 1Q19 Global League tables Financial advisor league table by value Ranking 1Q19 1Q18 Regional ranking comparison 1Q19 1Q18 Company name Value Deal Value % Value Europe US Asia Japan Middle Latin (USDm) count (USDm) change Pacific East & America Africa 1 3 JPMorgan 322,424 56 33.3% 241,796 2 1 3 4 1 12 2 1 Goldman Sachs & Co 282,032 69 3.3% 272,991 1 3 7 2 2 1 3 5 Citi 281,075 47 30.5% 215,454 8 2 24 - 6 2 4 2 Morgan Stanley 267,220 58 1.5% 263,228 3 4 11 1 5 4 5 6 Bank of America Merrill Lynch 168,285 36 -11.5% 190,153 5 8 4 3 4 18 6 15 Evercore 163,954 39 226.7% 50,188 16 5 62 28 14 7 7 11 Barclays 117,378 44 75.5% 66,885 4 6 50 6 9 - 8 17 HSBC 90,528 14 89.4% 47,786 13 25 6 - 3 24 9 79 Dyal Co 89,489 1 3002.9% 2,884 - 7 - - - - 10 7 Credit Suisse 85,736 31 -35.1% 132,062 7 9 45 - 17 28 11 - Klein and Company 74,593 2 - - - 36 - - 7 - 12 9 Centerview Partners 63,227 10 -36.9% 100,249 12 10 - - - - 13 4 Lazard 39,975 43 -82.9% 233,238 6 15 26 8 13 - 14 18 RBC Capital Markets 35,410 22 -24.2% 46,687 51 11 - - 21 - 15 39 PJT Partners 30,722 11 94.4% 15,800 20 12 - - - - 16 8 Deutsche Bank 30,302 19 -71.0% 104,585 10 18 18 9 12 - 17 24 UBS Investment Bank 29,403 30 -12.9% 33,769 11 29 2 17 - 20 18 82 SunTrust Robinson Humphrey Capital 28,537 6 983.4% 2,634 - 13 - - - - Markets 19 33 Jefferies 25,704 38 31.9% 19,487 15 14 28 - 10 - 20 10 Rothschild & Co