China’s technology industry saw a drop of 18% in overall deal activity during June 2019, when compared with the last 12-month average, according to GlobalData’s deals database.
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A total of 114 deals worth $4.49bn were announced in June 2019, compared to the 12-month average of 139 deals.
Venture financing was the leading category in the month in terms of volume with 92 deals which accounted for 80.7% of all deals.
In second place was M&A with 17 deals, followed by private equity with five transactions, respectively accounting for 14.9% 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 $3.37bn, while venture financing and private equity deals totalled $1.12bn and $2.89m, respectively.
China technology industry deals in June 2019: Top deals
The top five technology industry deals accounted for 78.3% of the overall value during June 2019.
The combined value of the top five technology industry deals stood at $3.52bn, against the overall value of $4.49bn recorded for the month. The top announced China technology industry deal tracked by GlobalData in June 2019 was Ziguang Guowei’s $2.61bn acquisition of Ziguang Liansheng.
In second place was the $321.06m acquisition of Xiaotai International Investment by iFresh and in third place was Baoshan Iron & Steel, China Baowu Iron and Steel Group, China Merchants Capital Management, China State-owned Enterprise Structure Adjustment Fund, China Structural Reform Fund, CITIC Securities Investment and Shanghai Baosteel International Economic & Trading’s $292m venture financing of Ouyeel International Ltd..
The $179.55m stake acquisition of Shenzhen Baoxin Industrial Limited by Shenzhen Ke Xin Shi Dai Industrial Investment Limited and Zhengzhou Airport Port Xinghui Electronic Technology’s stake acquisition of Beijing Unistrong Science & Technology for $121.13m held fourth and fifth positions, respectively.
Verdict deals analysis methodology
The State of Technology This Week
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.