January 2025 Review of Mergers and Acquisitions in the U.S.
January 2025 saw a slight decrease in M&A deal activity in the United States, with 1,086 announcements compared to 1,088 in December. However, despite this dip, there was an increase in aggregate M&A spending, with 7.9% more capital being allocated to deals in January compared to the prior month.
Analyzing the various sectors involved in M&A activities, FactSet’s data revealed that out of the 21 sectors monitored, four experienced a rise in deal activity over the past three months when compared to the same period a year earlier. These sectors include Technology Services, Health Technology, Energy Minerals, and Non-Energy Minerals. On the contrary, a significant decrease in M&A deal volume was observed in 16 sectors during the same comparative period. Sectors such as Commercial Services, Consumer Services, Finance, Distribution Services, and Industrial Services witnessed the largest declines in their respective deal volumes.
Highlighting some of the notable deals announced in January, Constellation Energy Corp. set its sights on acquiring Calpine Corp. for $16.7 billion, Johnson & Johnson agreed to acquire Intra-Cellular Therapies, Inc. for $14 billion, QXO, Inc. proposed the acquisition of Beacon Roofing Supply, Inc. for $7.7 billion, Frontier Airlines, Inc. looked to acquire Spirit Airlines, Inc. for $1.8 billion, and Bain Capital Private Equity LP expressed interest in acquiring the remaining majority stake in Surgery Partners, Inc. for $2 billion.
It is important to note that the information provided in this article serves purely for informational purposes. It is not intended as legal, tax, or investment advice. FactSet does not advocate for or recommend any specific investments and cannot be held liable for any consequences resulting directly or indirectly from actions taken based on the information presented here.
