1. Deals Analysis
March 8, 2021

Asia-Pacific’s technology industry saw a rise of 10.90% in cloud deal activity in Q4 2020

By Carmen

Led by Ontario Teachers’ Pension Plan and Warburg Pincus’ $360m private equity deal with Princeton Digital Group, Asia-Pacific’s technology industry saw a rise of 10.90% in cloud deal activity during Q4 2020, when compared to the last four-quarter average, according to GlobalData’s deals database.

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A total of 234 cloud deals worth $2.92bn were announced for the region during Q4 2020, against the last four-quarter average of 211 deals.

Of all the deal types, venture financing saw most activity in Q4 2020 with 177, representing a 75.6% share for the region.

In second place was M&A with 48 deals, followed by private equity deals with nine transactions, respectively capturing a 20.5% and 3.9% share of the overall cloud deal activity for the quarter.

In terms of value of cloud deals, venture financing was the leading category in China’s technology industry with $1.84bn, while private equity and M&A deals totalled $699.74m and $240.03m, respectively.

Asia-Pacific technology industry cloud deals in Q4 2020: Top deals

The top five technology cloud deals accounted for a 41.2% share of the overall value during Q4 2020.

The combined value of the top five cloud deals stood at $1.2bn, against the overall value of $2.92bn recorded for the quarter.

The top five technology industry cloud deals of Q4 2020 tracked by GlobalData were:

1) Ontario Teachers’ Pension Plan and Warburg Pincus’ $360m private equity deal with Princeton Digital Group

2) The $300m private equity deal with Guangdong Haoyun Changsheng Network by CITIC and DCP Capital

3) Changce Capital, Gaocheng Capital, Hillhouse Ventures, SIG-China and Tencent Holdings’ $265m venture financing of Beijing Yiou Education Technology

4) The $150m venture financing deal with Horizon Robotics by 5Y Capital, Capital Today, Guotai Junan International, Hillhouse Capital Group and KTB Network (Shanghai Office)

5) Blue Teng Capital, China Venture Capital Fund Corporation, CloudAlpha, Mirae Asset Venture Investment and New Oriental Group’s venture financing with Beijing Yuntongxun Information Technology for $125m.

Verdict deals analysis methodology

This analysis considers only announced and completed cloud-deals deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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