Whoever says no one does any business in August is living in the past. With a week to go before the end of the month, deal volume for August 2011 is at its highest point ever, with 120 transactions totaling more than $28 billion in enterprise value. In fact, data from Signal Hill shows a pretty consistent climb in the number of deals being announced in August over the past decade
The two multi-billion dollar transactions announced last week helped boost August’s totals: HP’s acquisition of Autonomy for $10.9 billion and Google’s acquisition of Motorola Mobility for $9.3 billion represent 72% of the month’s total enterprise value. However, there were a number of other sizable acquisitions announced that added to the record numbers: Emdeon’s purchase by the Blackstone Group ($3 billion); SunGard Higher Education’s acquisition by Datatel ($1.2 billion); Vangent’s acquisition by General Dynamics ($960 million); and Network Solution’s acquisition by Web.com ($824 million).
Two of the largest acquisitions in 2010 also occurred in August (McAfee/Intel, $6.8 billion; RBS WorldPay/Advent Capital & Bain, $3.2 billion), not to mention, revenue multiples have grown substantially over the past two years, climbing to 2.1x (2010) and 2.6x (2011) during the month of August, from 1.1x in 2009. Signal Hill announced two of its own deals this August as well. The dog days of summer might now have to be called the “deal days” of summer if this trend keeps up.