Deal Values Increased in the Power Industry in Q2 2016

Friday 16 September 2016, Amsterdam

This report, now available on ASDReports, “Power Quarterly Deals Analysis: M&A and Investment Trends - Q2 2016” report is an essential source of data and trend analysis on the mergers and acquisitions (M&As) and financing in the power industry. The report provides detailed information on M&As, equity/debt offerings, private equity, venture financing and partnership transactions registered in the power industry in Q2 2016. The report discloses detailed comparative data on the number of deals and their value in the past five quarters, categorized into deal types, segments, and geographies. The report provides information on the top private equity, venture capital and advisory firms in the power industry.

Asset Transactions Reported A Decrease In Deal Value In The Power Industry In Q2 2016
Asset transactions, including project financing, self-funded, tax equity, lease and bond financing, and bridge loans for acquisition of assets, registered a decrease in the number of deals and deal value in Q2 2016. The market registered 100 deals worth US$3.9 billion in Q2 2016, as compared to 139 deals worth US$10 billion in Q1 2016. On year-on-year basis, asset transactions recorded a decrease in the number of deals and deal value in Q2 2016, compared to 164 deals worth US$5.4 billion in Q2 2015.

The solar segment reported highest number of asset acquisitions with 39 deals worth US$511.3m in Q2 2016, followed by wind energy with 34 deals worth US$1.7 billion, fossil fuels with 10 deals worth US$1.4 billion and hydro with six deals worth US$73.5m during the same period.

Europe accounted for 41% of the total deals and 30% of the total deal value in asset transactions segment in Q2 2016, with 41 deals worth US$1.2 billion, followed by North America with 28 deals worth US$1.2 billion and Asia-Pacific with 25 deals worth US$1.4 billion during the same period.

Value Of M&A Deals Decreased In Q2 2016
M&As or corporate acquisitions in the power industry, registered same number of deals and a decrease in deal value with 102 deals worth US$23 billion in Q2 2016, compared to 102 deals worth US$24.7 billion in Q1 2016. On year-on-year basis, M&As recorded an increase in the number of deals and a decrease in deal value in Q2 2016, as compared to 77 deals worth US$34.7 billion in Q2 2015.

North America registered an increase in the number of deals and a decrease in deal value with 38 deals worth US$15.3 billion in Q2 2016, as compared to 24 deals worth US$19.1 billion in Q1 2016. On the other hand, Europe reported a decrease in the number of deals and an increase in deal value with 19 deals worth US$4.1 billion in Q2 2016, as compared to 26 deals worth US$811.6m in Q1 2016.

Capital Raising Through Issuance Of Equity Reported A Decrease In Q2 2016
Equity offerings, including IPOs, secondary offerings, and PIPEs, registered a marginal increase in the number of deals and deal value with 70 deals worth US$12.3 billion in Q2 2016, as compared to 69 deals worth US$12.1 billion in Q1 2016. On year-on-year basis equity offerings recorded a decrease in the number of deals and deal value in Q2 2016, as compared to 71 deals worth US$13 billion in Q2 2015.

IPOs in the power industry reported a decrease in the number of deals and an increase in deal value with two deals worth US$3 billion in Q2 2016, as compared to seven deals worth US$177.3m in Q1 2016.

Capital raising, through issuance of debt instruments, including public debt offerings and private debt placements, registered an increase in the number of deals and deal value with 101 deals worth US$31.7 billion in Q2 2016, as compared to 82 deals worth US$18.8 billion in Q1 2016. On year-on-year basis, debt offerings recorded an increase in the number of deals and a decrease in deal value in Q2 2016, compared to 90 deals worth US$36.6 billion in Q2 2015.

Venture Capital Investments Decreased In Q2 2016
Venture capital financing in the power industry registered a decrease in the number of deals and deal value in Q2 2016 with 34 deals worth U$275.5m, as compared to 37 deals worth US$353.7m in Q1 2016. On year-on-year basis, venture financing deals recorded an increase in the number of deals and a decrease in deal value in Q2 2016 with 31 deals worth US$310.5m in Q2 2015.

DFJ Growth, Presidio Ventures, Inc., Western Technology Investment, Arsenal Venture Partners, Environmental Technologies Fund made an investment in one deal each worth US$90m, US$30m,US$25m, US$19m, US$18m, respectively, between Q2 2015 and Q2 2016.

Deals In North America Marginally Increased In Q2 2016
North America registered an increase in the number of deals and deal value with 209 deals worth US$46.6 billion in Q2 2016, as compared to 203 deals worth US$42.3 billion in Q1 2016. On year-on-year basis, the number of deals registered a decrease in the number of deals and deal value in Q2 2016, as compared to 283 deals worth US$64 billion in Q2 2015.

Europe registered a decrease in the number of deals and an increase in deal value with 194 deals worth US$23.8 billion in Q2 2016, as compared to 213 deals worth US$12.4 billion in Q1 2016. On year-on-year basis, the number of deals registered an increase in the number of deals and deal value in Q2 2016, as compared to 189 deals worth US$19.9 billion in Q2 2015.

Asia-Pacific registered a decrease in the number of deals and deal value with 178 deals worth US$28.9 billion in Q2 2016, as compared to 248 deals worth US$40.3 billion in Q1 2016. On year-on-year basis, the number of deals registered a decrease in the number of deals and deal value in Q2 2016, as compared to 216 deals worth US$54.2 billion in Q1 2015.