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Cleantech Transactions up 73%

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"Solar leads, followed by wind, biofuel and biomass."

In the first eight months of 2010, there were 206 cleantech mergers, acquisitions, and capital raises—totaling $10.2 billion in reported deal value, according to a new market report.

Peachtree Green Advisors said while the 206 transactions were only slightly more than the 183 recorded during the same period in 2009, deal value grew 73% over the year-ago figure of $5.9 billion.

The uptick in M&A activity is a welcome relief after a dismal year in 2009 which reported only $9.5 billion in deal value—a number that has already been surpassed in 2010. The increased dealmaking signals that capital is steadily flowing into the greentech sector again.

More importantly, debt is returning to the greentech sector as well. Debt is the catalyst for acquisitions, which leads to exits for investors and attracts more investors, as well as a driver of capital spending, which leads to increased revenue. This inflow of capital and debt paints a positive outlook for greentech M&A going forward, according to the advisor group.

Solar leads in transaction value, (92% year-over-year to more than $2 billion) followed by wind, biofuel and biomass. Smart energy distribution showed the biggest year-of-year change.

Distribution, storage and efficiency drew the most attention from investors and its 74 raises accounted for 44% of all capital raise volume.

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