M&A market in Ukraine 2022: volume of transactions decreased by 9 times, from $2.7B to $0.3B

InVenture has presented the annual research on the development of the private equity and M&A market in Ukraine in 2022. The research tells more about the current industry trends, largest transactions, and shares forecasts for the development of the M&A market in Ukraine. AIN.Capital shares the key points.

Ukrainian M&As in 2022 in numbers

According to InVenture estimates, the volume of announced and completed M&A transactions in Ukraine, including corporate transactions and venture transactions in the technology sector, amounted to $305 million in 2022 (the actual size is assumed to be somewhat higher, but not exceeding $400 million).

• Compared to 2021, the total volume of M&A transactions decreased by 9 times: from $2.7 billion to $0.3 billion.
• The number of M&A transactions worth more than $1 million also decreased by over 2 times: from 120 transactions in 2021 to 54 transactions in 2022 (with 21 transactions in January-February 2022).

The only sector in the venture industry that still holds on relative stability in wartime is the Ukrainian IT sector. The amount of venture capital deals and acquisitions of IT companies reached $278 million, which is more than 90% of the total volume of M&A transactions in Ukraine.

The biggest M&A and VC deals made in Ukraine in 2022 include:

• AirSlate (PDFfiller) — $51,5 million from UiPath Ventures in June.
• Preply — $50 million from Owl Ventures and more in July.
• Apostera — $50 million from Harman International Industries Inc. in February.
• Augmented Pixels — $25 million from Qualcomm in January.
• Digitally Inspired — $20 million from Intellias in September.
• Spin Technology — $16 million from Blueprint Equity and more in August.
• Helsi — $10 million from PJSC Kyivstar in August.
• Fintech Farm — $7.5 million from Flyer One Ventures and more in January.

Forecasts for 2023

According to InVenture, a revival of the M&A market in 2023 is unlikely. In any case, it will fully depend on the situation at the frontline and have at least a year’s time lag after the end of the war. Although, most likely, deals in the IT sector and the venture industry will continue to take place.