Regina Garcia
Government market intelligence platform HigherGov said 433 M&A deals in the aerospace, defense and government market were announced in 2022, booking $46 billion in total.
In its Aerospace, Defense and Government M&A Review 2022 Report published Wednesday, HigherGov said the 2022 figure was 10 percent lower than 479 transactions logged in 2021 but was the second-highest turnout recorded amid economic headwinds, inflationary pressures and rising interest rates.
Defense acquisitions grew 12 percent year over year, on the back of increased military spending in the U.S. and Europe. Deal activity downturn was more evident during the third and fourth quarters of 2022 as sharp interest rates affected borrowing rates for investors.
HigherGov expects higher global defense spending and increased demand for space, cyber and other technology capabilities to futher drive transactions in 2023.
“We expect that the ADG market will outperform the broader M&A market in 2023 as positive government spending trends and stable recession-resistant cash flows in the sector attract investment,” said HigherGov Founder Justin Siken.
