There were 27 EMS transactions recorded in 2015, down from 33 recorded in 2014. EMS Consolidations were the most common type of transaction with 12 transactions in 2015, or 44% of total activity, compared to 17 transactions in 2014 which represented 52% of activity last year. In 2015, there were 11 Vertical/Horizontal Convergences, up from the ten recorded in 2014. This year’s activity represented 41% of the total, compared to 30% last year. Private equity investments decreased in 2015, with two total transactions, or 7% of the total, as compared to six transactions in 2014 or 18% of last year’s total activity. There was one EMS divestiture, representing 4% of total activity, and zero OEM divestitures in 2015. Both categories recorded zero transactions in 2014.
There was one transaction categorized as diversification into EMS in 2015, representing approximately 4% of total activity, compared to zero transactions in 2014.
In terms of transaction size, Small Tier EMS providers accounted for a majority of the 2015 transaction volume with 14 acquisitions, or approximately 52% of total activity. Large Tier EMS providers accounted for seven acquisitions, representing approximately 26% of total activity. This level of activity from the Large Tier represents a significant increase compared to recent periods as this group recorded zero transactions in 2014. Six acquisitions by Mid-Tier EMS providers occurred during the year, representing approximately 22% of the total.
