Top five South East deals of 2022 revealed

Experian’s MarketIQ report has revealed the top five deals in the South East last year.

Across the year dealmaking in the region dropped slightly to 1,159 from 1,209 in 2021. While mega deals saw a 12.5 per cent rise in volume and a four per cent rise in value, and small cap deals saw no change in either volume or value, mid-market and large deals saw drops.

Mid market deals saw a 27 per cent fall in volume and a 30 per cent fall in value, while large deals dropped by 34 per cent fall in volume and 42 per cent fall in value.

Acquisitions represented 71 per cent of total deal activity, up from 68 per cent in 2021. Technology accounted for the high proportion of deals in the region. The sector saw a 13 per cent fall in volume but an 88 per cent rise in value. As we will see, three of the top five deals were in tech.

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1) OpenText acquisition of Micro Focus - £5.1bn

The top deal by value last year was Canadian software firm OpenText's £5.1 billion acquisition of Newbury-based Micro Focus. OpenText, which develops and sells information management software funded the deal through raising $4.6 billion in new debt, $1.3 billion in cash and drawing $600 million from its existing revolving credit facility.

2) Purchase of minority stake in Vodafone - £3.6bn

The MarketIQ report ranks the £3.6 billion purchase of a minority stake in Vodafone by Dubai-based Emirates Telecommunications Group Company PJSC ar third. Former CEO Nick Read was reported as being surprised after the company purchased a 9.8 per cent stake in the Newbury-based telecoms giant.

3) Acquisition of Kensington Mortgage Company by Barclays - £2.3bn

Ranking third last year was Barclays' £2.3 billion acquisition of Maidenhead-based Kensington Mortgage Company (KMC). The move saw KMC, which had originated £1.6 billion of mortgages in the year ended 31 March 2022, begin to retain the majority of mortgages it originated.

4) SUEZ SA's re-acquisition of Suez Recycling & Recovery - £2b

Staying in Maidenhead, Suez Recycling and Recovery's £2 billion re-acquisition by SUEZ SA comes fourth in the list. At the time, SUEZ said the return of Recycling & Recovery UK would help to accelerate its international growth and support its October 2022 acquisition of EnviroServ.

5) Vodafone's sale of Hungary subsidiary - £1.5bn

Rounding out the top five is another Vodafone deal, this time the £1.5 billion sale of its Hungary-based subsidiary to 4iG Nyrt. Part of wider restructuring at Vodafone, the firm used the funds generated to pay off existing debt.

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