China’s technology industry saw a drop of 46.2% in overall deal activity during February 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 84 deals worth $817.57m were announced in February 2020, compared to the 12-month average of 156 deals.

Venture financing was the leading category in the month in terms of volume with 71 deals which accounted for 84.5% of all deals.

In second place was M&A with nine deals, followed by private equity with four transactions, respectively accounting for 10.7% and 4.8% 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 $646.45m, while private equity and venture financing deals totalled $170.68m and $0.44m, respectively.

China technology industry deals in February 2020: Top deals

The top five technology industry deals accounted for 36.04% of the overall value during February 2020.

The combined value of the top five technology deals stood at $294.62m, against the overall value of $817.57m recorded for the month.

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

1) Alibaba Group Holding’s $113.82m acquisition of Keruyun

2) The $66m venture financing of Kaishu Story by Temasek Holdings (Private), Zhengxingu and Zhixin Capital

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3) Xi’an Tianhe Defense TechnologyLimited’s $51.33m acquisition of Shenzhen Hua Yang Communication Technology

4) The $42m venture financing of Lai Network & Technology by Cathay Innovation, Lightspeed China Partners, Lightspeed Management Company and Wu Capital

5) Bright Capital, GF Xinde Investment Management and Tencent Holdings’ venture financing of Leyao Information Technology for $21.47m.

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.

 

Visit our ‘Technology Deals Dashboard’ for the latest trends in M&A, PE, and VC activity, top deals and advisory league tables in the technology industry.