1. Deals Analysis
September 10, 2020

China’s technology industry sees a rise of 13.7% in deal activity in July 2020

By Carmen

China’s technology industry saw a rise of 13.7% in overall deal activity during July 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 199 deals worth $10.12bn were announced in July 2020, compared to the 12-month average of 175 deals.

Venture financing was the leading category in the month in terms of volume with 162 deals which accounted for 81.4% of all deals.

In second place was M&A with 30 deals, followed by private equity with seven transactions, respectively accounting for 15.1% and 3.5% 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 $7.09bn, while venture financing and private equity deals totalled $2.75bn and $288.21m, respectively.

China technology industry deals in July 2020: Top deals

The top five technology industry deals accounted for 76.2% of the overall value during July 2020.

The combined value of the top five technology deals stood at $7.71bn, against the overall value of $10.12bn recorded for the month.

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

1) Tencent Holdings’ $3.5bn acquisition of Sogou

2) The $2.7bn acquisition of SINA by New Wave MMXV

3) KKR &Inc, Sequoia China Fund and Tencent Holdings’ $800m venture financing of Hunan Xingsheng Optimal E-Commerce

4) The $495m venture financing of Beijing Missfresh E-Commerce by Abu Dhabi Capital Group, CICC Capital ManagementLimited, Goldman Sachs & Co, ICBC International Capital, Suzhou Changshu Government Industry Fund, Tencent Holdings and Tiger Global Management

5) Alpha Investment Partners’ acquisition of Huizhou Bike Property Co for $214.46m.

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 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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