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DELOITTE analysis: The M&A market regained its pace in the second quarter of 2019

The mergers and acquisitions market in Romania revealed a significant growth in the second quarter of the year, compared to the first quarter and to the same period in 2018 as well. According to Deloitte estimates, the total market value, including transactions with undisclosed value, has been between EUR 1.4 and 1.6 billion, while the value of disclosed transactions reached around EUR 790 million.

Ioana Filipescu Stamboli, Partner Corporate Finance, DELOITTE Romania: “In the mergers and acquisitions market, the second quarter of the year has witnessed two premieres: the EUR 568 million financing raised by UiPath, which valuated the company at USD 7 billion, a record value for a Romanian start-up, and the acquisition by EximBank, a bank owned by the Romanian Government through the Ministry of Finance, of Banca Romaneasca. This is the fourth encounter with UiPath in our quarterly reports: the first one was in 2017, then twice in 2018, the company showing remarkable growth from one time period to another.”

The total number of transactions announced in the second quarter was 30, including those with undisclosed value. For comparison purposes, in the first three months of the year, the M&A market has witnessed 16 transactions, whilst the second quarter of 2018 counted 27.

Ioana Filipescu Stamboli: “Following a sluggish start, the M&A market regained its pace in the second quarter, with at least four transactions of above EUR 100 million. In the first semester of the year, the M&A market – based on the transactions with disclosed value – reached EUR 909 million. At the same time, the trend of not reporting the value of transactions intensified.”

Irina Dimitriu, Partner in REFF & ASSOCIATES, the law firm representing DELOITTE Legal global network in Romania: “In the real estate sector, the M&A market maintained its dynamism throughout the period, the biggest transaction being Dedeman’s takeover of Cluj-Napoca’s office building The Office.”

The biggest transactions announced in second quarter of 2019
1. the RPA company UiPath’s new financing round of USD 568 million (~EUR 500 million), which set a new record for its valuation, of USD 7 billion, with multiple financial investors participating in this round;
2. EximBank’s takeover of 99.28% of Banca Romaneasca, from National Bank of Greece (undisclosed value);
3. the acquisition of a minority stake in Superbet, the biggest player on the Romanian sport bets market, by private equity fund Blackstone (value: EUR 175 million);
4. Paval brothers’ (Dedeman owners) acquisition of Cluj-Napoca’s The Office building (undisclosed value);
5. the investment of close to EUR 60 million announced by CEE Equity to modernize and develop 15 grain silos and logistic hubs of the Brise Group.

Romanian M&A market, in Q2 2019:
– market value (transactions with disclosed value, including the UiPath mega transaction): EUR 790 million;
– market value (including transactions with undisclosed value and the UiPath mega transaction – Deloitte estimate): EUR 1.4–1.6 billion;
– number of transactions (including undisclosed deals): 30;
– average value (excluding the UiPath mega transaction): EUR 36 million.

* Note: Only transactions with a disclosed value of over EUR 5 million have been taken into consideration for the graph, while mega transactions (greater than EUR 500 million) have been excluded. Information is collected from public sources and updated with transaction values resulting from the latest available pieces of information.

DELOITTE Romania coordinates an integrated multidisciplinary M&A practice, with a holistic approach that ranges across multiple service lines, including M&A Advisory, Transaction Services, Fiscal Advisory and Legal Advisory. DELOITTE teams of skilled professionals can thus cover all relevant aspects of a transaction.

With a team of over 70 lawyers, REFF & ASSOCIATES, is recognized as a leading law firm in Romania for the quality of services and ability to deliver solutions on complex legal matters. The areas of practice include banking & finance, competition law, employment law, energy and environment law, insolvency law, litigation, mergers & acquisitions, public sector, real estate. The firm represents in Romania Deloitte Legal, a global network with more than 2,500 lawyers in 85 countries.

DELOITTE provides worldwide audit, consulting, legal, financial advisory, risk advisory, tax and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500 companies through a globally connected network of member firms in more than 150 countries and territories bringing world-class capabilities, insights, and high-quality service to address clients’ most complex business challenges. Deloitte’s purpose is to make an impact that matters through its approximately 286,000 professionals.

DELOITTE Romania is one of the leading professional services organizations in the country, providing services, in cooperation with Reff & Associates, in audit, tax, legal, consulting, financial advisory, risk advisory, business processes, technology and other related fields, through more than 1,500 professionals.

Please see www.deloitte.com/ro/about to learn more about the global network of member firms.

For more information about Reff & Associates, please visit www.reff-associates.ro. For more information about the global Deloitte Legal network, please visit www.deloittelegal.com.

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