M&A activity in New Zealand remained strong throughout 2021, closing out the year with record deal numbers.

Despite the global pandemic, the fourth quarter of 2021 saw a flurry of M&A activity in New Zealand, highlighting the trends we identified in our October 2021 Expanding Horizons M&A Report.

By the end of 2021, New Zealand M&A deal volumes rose 55% with a total of 124 deals, compared with 80 in 2020, according to new analysis.^[1]

Meanwhile M&A deal values also saw a massive year-on-year boost, with a 397% increase in 2021, totalling US$13.8billion (NZ$20.4billion).

Our analysis shows that New Zealand’s closed borders and other Covid-19 related restrictions didn’t put a damper on offshore investors, and there was a continued trend of high deal volumes in key sectors like technology and health.

Significant inbound investment in Q4 2021 included the merger of Orcon and 2degrees by Macquarie Asset Management/ Assure Super, the sale of Heritage Lifecare’s property portfolio to Centuria, and the acquisition of Weta Digital by Unity Software.

Key findings from our analysis, include:

• A quarter of all 2021 deals (24.2 per cent) were in the technology sector, equating to 30 deals;

• Overall deal volume in 2021 was 124 deals, 55 per cent more than 2020;

• Overall deal value in 2021 was US$13.8 billion (NZ$20.4 billion) a 397 per cent increase on 2020;

• Offshore deal volume in 2021 totalled 68 deals, a 55 per cent YOY increase;

• Domestic deal volume in 2021 totalled 56 deals, equating to a 56 per cent increase from 2020;

• Offshore deal value in 2021 was US$9.4 billion (NZ$13.9 billion) a 399 per cent YOY increase;

• Domestic deal value in 2021 was US$4.5 billion (NZ$6.6 billion) a 392 per cent increase on 2020.

New Zealand is seen as a location with strong investment fundamentals and we predict that it will continue to be viewed globally as an attractive investment destination in 2022.