Baltic M&A Monitor 2019

Mergermarket is pleased to present the Baltic M&A Monitor, in association with Ellex. This report provides a detailed look at M&A activity in Estonia, Latvia and Lithuania, along with forecasts for the year ahead.

According to Mergermarket data, the Baltic states completed a record year for M&A activity in 2018, with 74 registered deals worth €2.7bn – an increase of 43% and 320%, respectively, compared to 2017.

Other highlights from the report include:

• Estonia accounted for 43% of total Baltic deal volume in 2018, and saw a record year for transaction value, with just over €2bn-worth of deals. This included the single largest transaction in the region, the €1bn acquisition of a 60% stake in banking company Luminor Group by US-based PE fund Blackstone Group.
• Lithuania took a 34% share of overall deal volume in the region with 25 transactions – more than double the number of deals seen in 2017.
• Latvian deal value soared to a total of €394m, second only to the country’s record of €426m, achieved in 2015. Volume remained strong, with 17 transactions, the highest since 2013.
• The technology, media and telecommunications (TMT) sector continued to be a major driver of dealmaking activity in the region. In 2017-2018, TMT accounted for 17% of all deals by volume, more than any other industry. The energy, mining and utilities (EMU) sector also proved buoyant, with three deals in the top 10.
• Looking ahead, the Mergermarket Heat Chart, which logs ‘companies for sale stories’ for the past six months, shows a total of 52 stories, eight more than this time last year – a sign of the robust investor confidence in the region and a potentially strong pipeline for 2019 and beyond.