US power industry sees a drop of 18.2% in deal activity in July 2020

3 September 2020 (Last Updated September 3rd, 2020 16:03)

US power industry sees a drop of 18.2% in deal activity in July 2020

The US power industry saw a drop of 18.2% in overall deal activity during July 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 36 deals worth $13.42bn were announced in July 2020, compared to the 12-month average of 44 deals.

M&A was the leading category in the month in terms of volume with 22 deals which accounted for 61.1% of all deals.

In second place was venture financing with ten deals, followed by private equity with four transactions, respectively accounting for 27.8% and 11.1% of overall deal activity in the country’s power industry during the month.

In terms of value of deals, M&A was the leading deal category in the US power industry with total deals worth $10.24bn, while private equity and venture financing deals totalled $3.11bn and $67.7m, respectively.

US power industry deals in July 2020: Top deals

The top five power industry deals accounted for 95.2% of the overall value during July 2020.

The combined value of the top five power deals stood at $12.78bn, against the overall value of $13.42bn recorded for the month.

The top five power industry deals of July 2020 tracked by GlobalData were:

1) NRG Energy’s $3.63bn acquisition of Direct Energy

2) The $3.2bn acquisition of Vivint Solar by Sunrun

3) Spartan Energy Acquisition’s $2.9bn acquisition of Fisker

4) The $2.5bn private equity deal with Rivian Automotive by Amazon.com, Baron Capital Group, BlackRock, Coatue Management, Fidelity Management & Research, Soros Fund Management and T Rowe Price Associates

5) KPS Capital Partners’ private equity deal with Briggs & Stratton for $550m.

Verdict deals analysis methodology

This analysis considers only announced and completed deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.