Monthly Defense Deals Roundup – May, 2012

Product Synopsis

The report provides a review and understanding of mergers and acquisitions (M&As), capital-raising, partnering deals, and agreements entered into by defense companies during May 2012.

Introduction and Landscape

Why was the report written?
Using this report, dealmakers will effectively gain an insight into deal activity during the month. Additionally, the report provides an overview of all the partnering, alliances, and M&A deals announced worldwide.

What makes this report unique and essential to read?
The Monthly Report provides the reader with the top-line data necessary to quickly keep abreast of deal activity in the defense market on a monthly basis.

Key Features and Benefits
The report provides detailed analysis on mergers and acquisitions (M&As) activity in the defense industry in May 2012 compared to April 2012, and the trailing twelve month (TTM) average. This provides an insight into inorganic growth strategies of companies in the industry, and competitor tracking.

The report provides detailed analysis on private equity and venture capital activity in the defense industry in May 2012 compared to April 2012, and the TTM average. This provides an insight into the investment activity in the industry by financial investors.

The report provides detailed analysis on capital raising activity, including equity and debt offerings, in the defense industry in May 2012 compared to April 2012, and the TTM average. This provides an insight into the capital raising activity of companies in the industry, including fund raising trends from both equity and debt capital markets.

The report provides detailed analysis on strategic partnerships in the defense industry in May 2012 compared to April 2012, and the TTM average.

Key Highlights

The pace of deals in the defense industry was seen increasing in May 2012. The current fiscal challenges have resulted in an increase in inorganic growth in the industry as smaller companies lack the resources to compete with the larger firms and thus often become an acquisition target.

A notable trend in the defense industry in May 2012 is the sharp increase in deal value in Europe. Defense budget cuts in the region and the need for companies to grow their revenue bases and improve liquidity are expected to result in further increases in deal activity over the coming months.

The aerospace products and parts manufacturing segment recorded 15 transactions, which was a 36% increase over the previous month’s deal activity. Deal activity in the segment was valued at US$12,055.0 million, which represented a substantial increase compared to US$52.0 million worth of deals in April.

There was a significant increase in strategic partnering deals among defense companies during May with 19 partnering deals being recorded compared to nine in April.