EY Survey Reveals the M&A Market Has Room to Run

Last week, according to Pitchbook, M&A markets featured 36 deals for a total of $23.3 billion in invested capital. The $23.3 billion of invested capital is an increase of approximately 108% from the week prior, primarily due to a number of large acquisitions and buyouts. Also, a survey published by consulting firm EY last week shows that the M&A market has room to run. Ninety percent of the roughly 500 corporate executives surveyed believe that M&A conditions will improve over the next twelve months, with only 1% foreseeing a decline in conditions. Further, 51% of the executives say they plan to pursue acquisitions in the coming months, an increase from the 46% who said the same in April. The following are some of last week’s acquisitions featured in Skyline’s core industry focuses:

• Data security provider Imperva (NAS: IMPV) has agreed to a $2.1 billion public-to-private leveraged buyout offer from private equity firm Thoma Bravo. The California cybersecurity firm supplies threat detection, breach prevention and other data-protection products for industries including health care, financial services and the government.

• Before market open on Tuesday, Alliqua BioMedical (NAS: ALQA) and Adynxx reached an agreement to merge together, forming a Nasdaq-traded, clinical-stage pharmaceutical company. The combined firm will be named Adynxx, Inc., and will focus on developing a platform of disease-modifying, non-opioid therapies for the treatment of pain.

• A Boston-based software testing firm, Perfecto Mobile, has been acquired by Minneapolis-based Perforce Software for $200 million. Perforce is a provider of enterprise development operations software solutions. Perfecto provides enterprise software that allows clients to test mobile and web-based applications to advance their digital transformation. The acquisition will help Perforce’s clients develop their own digital transformations through Perfecto’s platform.

• Lincoln Industries, a Nebraska diversified metal finishing company, has agreed to acquire its Lincoln neighbor, SourceOne. SourceOne is a custom metal manufacturing and engineering firm with clients across the Midwest. Lincoln Industries has been expanding its subsidiaries and its own businesses, with an acquisition late last Spring and an expansion of a subsidiary’s operations earlier this year.
  

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• Green Plains Energy, an Omaha-based producer of ethanol and other commodities, says it has agreed to sell three of its ethanol plants to Valero Renewable Fuels Company. Valero will pay $300 million for the facilities, which represent about 20% of Green Plains ethanol production capacity. Also, Green Plains will acquire the storage and transportation assets associated with the three plants for $120 million from Green Plains Partners, an affiliate.