U.S. Mergers & Acquisitions Monthly Review: January 2025

U.S. M&A deal activity decreased in January, going down 0.2% with 1,086 announcements compared to 1,088 in December. However, aggregate M&A spending increased. In January 7.9% more was spent on deals compared to December.

In terms of M&A deal activity, 4 of the 21 sectors tracked by FactSet saw an increase in M&A deal activity over the past three months relative to the same three-month period one year ago: Technology Services (676 vs. 639), Health Technology (125 vs. 115), Energy Minerals (28 vs. 21) and Non-Energy Minerals (65 vs. 61).

On the other hand, 16 of the 21 sectors tracked by FactSet saw a decrease in M&A deal activity over the past three months relative to the same three-month period one year ago. The five sectors that witnessed the largest declines in M&A deal volume were: Commercial Services (399 vs. 537), Consumer Services (184 vs. 293), Finance (572 vs. 674), Distribution Services (154 vs. 213) and Industrial Services (204 vs. 263).

Topping the list of the largest deals announced in January are: Constellation Energy Corp.'s deal to acquire Calpine Corp. from Energy Capital Partners Management LP, Access Industries, Inc. (New York) and Canada Pension Plan Investment Board Private Investments for $16.7 billion; Johnson & Johnson entering an agreement to acquire Intra-Cellular Therapies, Inc. for $14 billion; QXO, Inc.'s proposal to acquire Beacon Roofing Supply, Inc. for $7.7 billion; Frontier Airlines, Inc., a subsidiary of Frontier Group Holdings, Inc., proposing to acquire Spirit Airlines, Inc. for $1.8 billion; Bain Capital Private Equity LP submitting a proposal to acquire the remaining 60.7% majority stake not yet owned in Surgery Partners, Inc. for $2 billion.

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