1. Deals Analysis
January 21, 2021

China’s technology industry sees a rise of 26.4% in deal activity in December 2020

By Carmen

China’s technology industry saw a rise of 26.4% in overall deal activity during December 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 230 deals worth $10.94bn were announced in December 2020, compared to the 12-month average of 182 deals.

Venture financing was the leading category in the month in terms of volume with 175 deals which accounted for 76.1% of all deals.

In second place was M&A with 45 deals, followed by private equity with ten transactions, respectively accounting for 19.6% and 4.4% of overall deal activity in the country’s technology industry during the month.

In terms of value of deals, M&A was the leading deal category in China’s technology industry with total deals worth $8.38bn, while private equity and venture financing deals totalled $1.73bn and $817.23m, respectively.

China technology industry deals in December 2020: Top deals

The top five technology industry deals accounted for 54.1% of the overall value during December 2020.

The combined value of the top five technology deals stood at $5.92bn, against the overall value of $10.94bn recorded for the month.

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

1) Anhui Sanzhong Yichuang Industrial Development Fund, GigaDevice Semiconductor Beijing, Hefei State-owned Assets Supervision and Administration Commission, National Integrated Circuit Industry Investment Fund and Xiaomi Yangtze River Industry Fund’s $2.39bn venture financing of Ruili Integrated Circuit

2) The $1.6bn venture financing of Zuoyebang by Alibaba Group Holding, FountainVest Partners, Sequoia Capital China, SoftBank Vision Fund and Tiger Global Management

3) CPE Funds Management’s $936.5m private equity deal with Hollysys Automation Technologies

4) The $500m venture financing of Hangzhou Lianke Meixun Biomedical Technology by GL Ventures, Hillhouse Capital Group, Tencent Holdings and TrustBridge Partners

5) China Integrated Circuit Industry Investment Fund (ICF) II, GoldStone InvestmentLtd , Hengqin Financial Investment Group and Zhuhai Gree Financial Investment Management’s private equity deal with Apex Microelectronics for $488.77m.

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.

 

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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