Alternative Energy Quarterly Deals Analysis Q3 2009

Alternative Energy Quarterly Deals Analysis Q3 2009 Summary GlobalData's “Alternative Energy Quarterly Deal Analysis Q3 2009” report is an essential source of data and trend analysis on the mergers and acquisitions (M&A) and financings in the alternative energy market. The report provides detailed information on M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnership transactions registered in the alternative energy industry in Q3 2009. The report portrays detailed comparative data on the number of deals and their value in the last five quarters subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top private equity, venture capital, and advisory firms in the alternative energy industry. Data presented in this report is derived from GlobalData’s proprietary in-house Alternative Energy eTrack deals database and primary and secondary research. Scope Analyze market trends for the alternative energy market in the global arena Review of deal trends in wind, solar, hydro, biopower, geothermal, transformation technologies, hydrogen & fuel cell markets Analysis of M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnerships in the alternative energy industry Summary of alternative energy deals globally in the last five quarters Information on the top deals that took place in the alternative energy industry Geographies covered include - North America, Europe, Asia Pacific, South & Central America, and Middle East & Africa League Tables of financial advisors in M&A and equity/debt offerings. This includes key advisors such as Morgan Stanley, Credit Suisse, and Goldman Sachs Reasons to buy Enhance your decision making capability in a more rapid and time sensitive manner Find out the major deal performing segments for investments in your industry Evaluate type of companies divesting / acquiring and ways to raise capital in the market Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the alternative energy market Identify major private equity/venture capital firms that are providing finance in the alternative energy market Identify growth segments and opportunities in each region within the industry Look for key financial advisors where you are planning to raise capital from the market or for acquisitions within the industry Identify top deals makers in the alternative energy market

Additional Information

Decreased Deal Activity In The Alternative Energy Market In Q3 2009

GlobalData’s “Alternative Energy Quarterly Deals Analysis Q3 2009” report is an essential source of data and trend analysis on the Mergers and Acquisitions (M&A) and financings in the alternative energy market. The report provides detailed information on M&A, Equity/Debt Offerings, Private Equity, Venture Financing and Partnership transactions registered in the alternative energy industry in Q3 2009. The report portrays detailed comparative data on the number of deals and their value in the last five quarters subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top private equity, venture capital, and advisory firms in the alternative energy industry.

Data presented in this report is derived from GlobalData’s proprietary in-house Alternative Energy eTrack deals database and primary and secondary research.

Deals In The Alternative Energy Industry Declined By 21% In Q3 2009

The global financial crisis and the economic recession has hit the alternative energy companies particularly hard, with the number of deals decreasing from 361 deals in Q2 2009 to 285 deals in Q3 2009. On a year-on-year basis, the number of deals in the alternative energy market fell by 34% in Q3 2009 from 432 deals in Q3 2008. Furthermore, the global credit freeze created a difficult operating environment for early stage companies to survive in the market. Though the number of deals in the alternative energy market decreased, investments in the market remained steady with $53 billion in Q3 2009 as compared to $54 billion in Q2 2009, indicating that the industry players are beginning to seek opportunities for consolidation in light of the expected economic recovery.

Mergers & Acquisitions In The Alternative Energy Market Plunge 44% In Q3 2009

Mergers and acquisitions in the alternative energy industry witnessed a downfall of 44% in investments to reach $3.6 billion in Q3 2009 compared to $6.4 billion in Q2 2009, as the economic crunch made credit scarcer for financial buyers. Other factors that led to a decrease in M&A activity in Q3 2009 include the cocktail of the sub-prime and broader banking crisis; and the crash in equity values of alternative energy stocks. The number of M&A deals also decreased marginally from 74 deals in Q2 2009 to 70 deals in Q3 2009.

The average size of M&A deals declined from $257 million in Q2 2009 to $144 million in Q3 2009. This reflects that acquirers have become conservative in choosing targets and are relying on smaller business takeovers rather than larger ones with higher market valuations. TransAlta’s acquisition of 87% interest in Canadian Hydro Developers for approximately $590 million was the highlight of this quarter.

M&A activity was dominant in the solar sector with 30 deals in Q3 2009, followed by wind energy with 21 deals. Factors such as falling costs of the solar technology have redirected investors’ attention towards solar investments from other renewable sources of energy.

According to Prasad Tanikella, Analyst at GlobalData, “The alternative industry which is in growth phase is expected to see many M&A activity. However, the financial crisis period has seen a slow down in the activity. The sector is poised to see an uptrend post the crisis period. ”Thaw In Debt Offerings In Q3 2009

Secondary debt offerings and private placements by alternative energy companies around the globe have seen a decline of 10% from $41 billion in Q2 2009 to $37 billion in Q3 2009. Debt financing for large scale projects remained difficult for the alternative energy companies because of the banking crisis. The number of debt offering deals also decreased drastically by 62% to reach 48 deals in Q3 2009 as compared to 126 deals in Q2 2009.

Capital raising, through IPOs, secondary offerings, and private placements, by alternative energy companies totaled $9.1 billion during Q3 2009, which signifies an increase of 42% over $6.4 billion in Q2 2009. The Q3 2009 total was boosted by a few major share issues, including a $3.7 billion shares issue by Chinese hydro energy company, China Yangtze Power Co.; and the $1.3 billion initial public offering by Indian hydro power generator, National Hydroelectric Power Corporation, the first billion dollar IPO in 2009. Of the $9.1 billion equity investments in Q3 2009, $6.7 billion was invested in hydro generation companies. Furthermore, Asia Pacific region raised majority of the equity capital with $6.5 billion in the quarter

Increased Private Equity / Venture Capital (PE/VC) Funding For Alternative Energy Companies In Q3 2009

Alternative energy companies pulled more than $1.2 billion in private equity / venture-backed financing during Q3 2009, representing an 87% increase from the $664 million invested in alternative energy companies during Q2 2009. The extension of tax credits for renewable-based power generation is driving PE/VC investments into the market. The number of PE/VC deals also increased from 36 deals in Q2 2009 to 50 deals in Q3 2009. Solar companies garnered the greatest amount of funding during the third quarter of 2009, with $446 million raised in 26 deals. Among the big PE/VC deals in Q3 2009 were Argonaut Private Equity’s investment of $198 million in Solyndra; $75 million venture financing round by Suniva; and Credit Agricole’s investment of $28 million in the France-based renewable energy developer, Neoen.

RockPort Capital Partners emerged as the top VC firm by providing financing for 10 alternative energy companies during the last one year. Credit Agricole Private Equity ranked as the top PE firm by investing in five alternative energy companies during Q4 2008 - Q3 2009.

According to Prasad Tanikella, Analyst at GlobalData, “Even though the Alternate energy sector is yet to reach grid parity the financing firms fund based on financial support provided by the government. The increase in support of various governments for the sector is reflected in increase in PE/VC financing. ”

Investments Surge In North America And Europe

Alternative energy investments in North America and Europe increased in Q3 2009, spurred by mounting public concern, renewed interest, and stimulus funding promised by major economies for alternative energy companies. North America registered investments of $19 billion in Q3 2009 as compared to $17 billion in Q2 2009, while Europe attracted investments of over $25 billion in Q3 2009 as compared to $23 billion in Q2 2009. Asia-Pacific registered a decrease of 34% in investments from $12.6 billion in Q2 2009 to $8.3 billion in Q3 2009.

According to Prasad Tanikella, Analyst at GlobalData, “The developed economies, which are showing signs of coming out of recession, are steadily growing in alternate energy sector. The sector is expected to grow strongly in the next few with more activity in wind and Solar sectors.