Programming and Internet companies operating in the Baltic States have generally generated the greatest interest of investors (49 transactions), followed by the service, manufacturing and energy sectors. The energy sector is the only one where investor interest has remained constant – historically the number of transactions fluctuated around five transactions per year, but in 2021 and 2022 the energy sector experienced around 15 transactions per year. In other sectors, the number of transactions decreased last year.
“Just like in Europe, interest from investors in the Baltic States was also tentative last year. The main reasons are geopolitical instability due to the war started by Russia and unprecedentedly high inflation. Although the number and volume of transactions were lower than a year ago, investors still had a relatively high interest in for Baltic companies, especially in the IT sector, as well as for renewable energy projects. Unfortunately, Latvia has not yet succeeded in approaching its two neighbors in terms of M&A transaction activity – even though our country has several very bright and globally competitive brands, the number of such companies in Lithuania and Estonia is bigger. That’s why investments basically go to companies in neighboring countries,” Valērija Lieģe, partner of Oaklins in Latvia and representative of the global executive committee of Oaklins, describes the market.
“Oaklins” helped conclude a total of 12 M&A transactions in the Baltic countries last year, which is the largest number of transactions in the Baltics. As one of the important and noticed transactions of 2022 in Latvia, experts mention the acquisition of SIA “Telia Latvija”, which was taken over by the technology and entertainment company “Tet”. The successful sale of the natural cosmetics manufacturer “Bio2You” to the Lithuanian private capital fund “INVL Baltic Growth Fund” should also be emphasized.
Evaluating the five biggest deals of 2022, Liège highlights 2 deals in the field of technology, 2 in energy and one in the healthcare sector. In the field of technology, the largest investment in the amount of 628 million euros was made last year in the transport services and delivery company Bolt (investor – “Sequoia” Capital).
EUR 92 million was invested in the Lithuanian cyber security company “Nord Security”, which last year became the second “unicorn” in Lithuania (the main investor was Novator Ventures).
Among the biggest transactions in the energy sector, the investment of the Lithuanian “Ignitis Group” in the amount of 213 million euros in several solar energy projects in Latvia, as well as the investment of 200 million euros in the renewable energy production company “Sunly” (Estonia) should be mentioned.
On the other hand, in the field of health care, experts highlight the deal in the amount of 406 million euros, in which the Lithuanian “Euroapotheca” implemented the merger of the Swedish pharmacy companies “Euroapotheca Apoteksgruppen” and “Oriola Kronans Apotek”.
