1. Deals Analysis
February 21, 2021

Canada’s technology industry sees a rise of 47.62% in cross border deal activity in January 2021

By Carmen

Canada’s technology industry saw a rise of 47.62% in overall cross border deal activity during January 2021, when compared with the last 12-month average, led by Naver’s $600m acquisition of WP Technology, according to GlobalData’s deals database.

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A total of 31 cross border deals worth $969.46m were announced in January 2021, compared with the 12-month average of 21 deals.

M&A was the leading category in the month in terms of volume with 16 deals, which accounted for 51.6% of all cross border deals.

In second place was private equity with eight cross border deals, followed by venture financing with seven transactions, respectively accounting for 25.8% and 22.6% of overall deal activity in the Canada’s technology industry during the month.

In terms of value of cross border deals, M&A was the leading deal category in Canada’s technology industry with total deals worth $600m, while private equity and venture financing deals totalled $215.82m and $153.64m, respectively.

Canada technology industry cross border deals in January 2021: Top deals

The top five technology industry cross border deals accounted for 98.5% of the overall value during January 2021.

The combined value of the top five technology cross border deals stood at $955.33m, against the overall value of $969.46m recorded for the month.

The top five technology industry cross border deals of January 2021 tracked by GlobalData were:

1) Naver’s $600m acquisition of WP Technology

2) The $202.88m private equity deal with SMTC by H.I.G. Capital

3) Canadian Business Growth Fund and TPG Growth’s $124.51m venture financing of Prodigy Education

4) The $15m venture financing deal with Third Blink Software by Bessemer Venture Partners, FundFire, iNovia Capital, Mistral Venture Partners, Ridge Ventures and ScaleUP Ventures

5) Phoenix Insurance Investment Fund’s private equity with Siyata Mobile for $12.94m.

Verdict deals analysis methodology

This analysis considers only announced and completed 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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