CHICAGO – Eight EMS transactions were recorded in the fourth quarter by Lincoln International, a decrease from the 12 recorded in the fourth quarter of 2022.

According to the firm's latest EMS Quarterly Review, consolidations made up three of the transactions in the quarter, with vertical/horizontal convergence accounting for four and one private equity investment rounding out the list.

By geography, Europe had four transactions, the US/Canada had two transactions, and cross-border (High/High) and cross-border (Low/Low) each had one transaction. Asia did not record a closed transaction in the quarter.

In terms of size, small-tier EMS providers (below $300 million in sales) accounted for five of the transactions, one transaction was categorized as a mid-tier EMS deal ($300 million to $3 billion in sales) and two transactions were categorized as large-tier EMS deals (greater than $3 billion in sales).

Lincoln said mergers and acquisitions (M&A) activity is expected to rise in 2024-2025, especially with middle-market EMS companies, driven by demand resiliency and broader market improvement. With the EMS sector set to expand significantly, more M&A activity is expected for consolidating key capabilities and introducing additional capital to realize near- and long-term growth.

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