Annual Deal Report – Defense

This report includes a com­pre­hen­sive analy­sis of the M&A, cap­i­tal rais­ing and part­ner­ing deals announced world­wide in 2011 through ana­lyt­i­cal insights from a seg­ment and region­al per­spec­tive. It also pro­vides an exten­sive list of key deals and quar­ter­ly analy­sis by deal type, seg­ment and region.
The report offers an overview of the trends sur­round­ing deal vol­ume and deal val­ue in 2011, by deal type, seg­ments and region, fol­lowed by a brief analy­sis of the pri­ma­ry objec­tives of com­pa­nies enter­ing into var­i­ous trans­ac­tions in the defense indus­try dur­ing the year. In addi­tion, the chap­ter includes league tables on finan­cial and legal advi­sors.
The report pro­vides an exten­sive analy­sis on deals under­tak­en in the defense indus­try in 2011 by deal type, seg­ment and region. It also pro­vides an exten­sive list of the key deals in the fol­low­ing defense seg­ments aero­space prod­ucts and parts, army and navy vehi­cles, sup­port ser­vices, train­ing and sim­u­la­tion equip­ment and ser­vices, C4ISR (com­mand, con­trol, com­mu­ni­ca­tions, com­put­ers, intel­li­gence, sur­veil­lance and recon­nais­sance) elec­tron­ics and infor­ma­tion tech­nol­o­gy, and ord­nance and guns. This is fol­lowed by lead­ing deals by deal type in North Amer­i­ca, Europe, the Asia-Pacif­ic and the Rest of the World.

The ‘Defense Annu­al Deal Report’ will help deal­mak­ers to effec­tive­ly and effi­cient­ly gain an in-depth under­stand­ing into deal activ­i­ty in the glob­al defense indus­try in 2011.

Scope
The ‘Annu­al Deal Report’– Defense pro­vides a detailed under­stand­ing and review of M&A activ­i­ty, cap­i­tal rais­ing, part­ner­ing deals and agree­ments entered into by com­pa­nies in the defense indus­try in 2011.

Rea­sons To Buy
Using this report, deal­mak­ers will effec­tive­ly and effi­cient­ly gain an insight into the deal activ­i­ty in the defense indus­try in 2011. The report pro­vides an overview of all the part­ner­ing, alliances and M&A deals announced world­wide.

Key High­lights

  • The defense indus­try report­ed 574 trans­ac­tions worth US$62.6 bil­lion in 2011.
  • Deal activ­i­ty fluc­tu­at­ed on a month­ly basis and peaked in June 2011, while Sep­tem­ber 2011 record­ed the low­est activ­i­ty. Sec­ond half of the year record­ed a decline in deal activ­i­ty com­pared with first of the year. When con­sid­er­ing quar­ter­ly deal activ­i­ty, deal activ­i­ty was the high­est in Q22011 and the low­est in Q32011.
  • Major­i­ty of the trans­ac­tions in the defense indus­try were M&A trans­ac­tions fol­lowed by part­ner­ship trans­ac­tions.
  • The C4ISR Elec­tron­ics and IT sec­tor dom­i­nat­ed the deal activ­i­ty in the year, fol­lowed by the aero­space prod­ucts and parts man­u­fac­tur­ing seg­ment.
  • The prin­ci­pal dri­vers of deal activ­i­ty remained scal­ing-up busi­ness and geo­graph­i­cal expan­sion, with a pri­ma­ry focus on mit­i­gat­ing risks asso­ci­at­ed with depen­dence on domes­tic mar­kets, and explor­ing oppor­tu­ni­ties aris­ing from emerg­ing mar­kets.
  • Anoth­er wave of con­sol­i­da­tion in the defense indus­try was seen in 2011 and this trend could con­tin­ue in the short to medi­um term, amid gov­ern­ment bud­get cuts for mil­i­tary spend­ing in the US and West­ern Europe.
  • Bank­ing on attrac­tive debt mar­kets, com­pa­nies in the defense indus­try raised US$11.1 bil­lion from debt mar­kets, com­pared with US$3.2 bil­lion raised from equi­ty mar­kets.
  • PE/VC invest­ments in the indus­try in 2011 stood at US4.6 bil­lion, the major­i­ty of these invest­ments went into C4ISR Elec­tron­ics and IT space.
  • Many planned strate­gic sales of busi­ness units were report­ed in 2011, which may mate­ri­al­ize in 2012. This gives a sense of promis­ing deal activ­i­ty in 2012 as well.
  • M&A activ­i­ty was dom­i­nat­ed by C4ISR Elec­tron­ics and IT seg­ment with 148 trans­ac­tions worth US$26.4 bil­lion.
  • Strate­gic part­ner­ships record­ed 142 trans­ac­tions, which were dom­i­nat­ed by the North Amer­i­can region and the C4ISR Elec­tron­ics and IT seg­ment.
  • The C4ISR Elec­tron­ics and IT seg­ment dom­i­nat­ed the deal activ­i­ty in the year with the high­est deal activ­i­ty, fol­lowed by the aero­space prod­ucts and parts man­u­fac­tur­ing seg­ment.
  • The North Amer­i­can region account­ed for the major­i­ty of the deal activ­i­ty in 2011, fol­lowed by the Euro­pean region. The Asia-Pacif­ic region was the third most active in terms of over­all deal activ­i­ty and main­ly dri­ven by growth in emerg­ing mar­kets such as Chi­na and India.
  • In BRIC (Brazil, Rus­sia, India and Chi­na) coun­tries, India dom­i­nat­ed the deal activ­i­ty with most num­ber of deals, while Brazil was the least active coun­try in the group.

Here you can find more infor­ma­tion: Annu­al Deal Report – Defense