U.S. M&A Deal Activity and Value Sank in August

U.S. M&A deal activity decreased in August, down 6.2% with 860 announcements compared to 917 in July. Aggregate M&A spending also decreased; in August, 23.0% less was spent on deals compared to July.

Over the past three months, only one sector saw an increase in M&A deal activity, relative to the same three-month period one year ago, Finance  with 372 deals vs. 359 a year ago. Only one of the 21 sectors tracked by FactSet Mergerstat posted relative gains in deal flow over the last three months compared to the same three months one year prior.

Over the past three months, the sectors that have seen the biggest declines in M&A deal volume, relative to the same three-month period one year ago have been: Commercial Services (395 vs. 470), Technology Services (431 vs. 490), Consumer Services (194 vs. 250), Retail Trade (99 vs. 152), and Industrial Services (95 vs. 145). Twenty of the 21 sectors tracked by FactSet Mergerstat posted negative relative losses in deal flow over the last three months compared to the same three months one year prior, for a combined loss of 533 deals.

Topping the list of the largest deals announced in August were:

• Gilead Sciences, Inc. entering an agreement to acquire Kite Pharma, Inc. for $10.3 billion
• Sempra Energy's agreement to acquire Energy Future Holdings Corp. for $9.5 billion
• A private group led by Energy Capital Partners LLC, Access Industries, Inc. and Canada Pension Plan Investment Board agreeing to acquire Calpine Corp. for $5.5 billion
• Invitation Homes, Inc.'s deal to acquire Starwood Waypoint Homes for $4.3 billion
• Silver Run Acquisition Corp. II agreeing to acquire Alta Mesa Holdings LP, a portfolio company of Highbridge Principal Strategies Growth Equity, for $3.4 billion

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