1. Deals Analysis
December 21, 2020

China’s technology industry sees a drop of 21% in deal activity in November 2020

By Carmen

China’s technology industry saw a drop of 21% in overall deal activity during November 2020, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 147 deals worth $8.1bn were announced in November 2020, compared to the 12-month average of 186 deals.

Venture financing was the leading category in the month in terms of volume with 121 deals which accounted for 82.3% of all deals.

In second place was M&A with 23 deals, followed by private equity with three transactions, respectively accounting for 15.7% and 2.04% 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 $3.81bn, while private equity and venture financing deals totalled $2.57bn and $1.72bn, respectively.

China technology industry deals in November 2020: Top deals

The top five technology industry deals accounted for 56% of the overall value during November 2020.

The combined value of the top five technology deals stood at $4.53bn, against the overall value of $8.1bn recorded for the month.

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

1) Baidu’s $3.6bn asset transaction with YY.com

2) The $270m venture financing of PingCAP by 5Y Capital, Anatole Investment Management, Bertelsmann Asia Investment Fund, Coatue, FutureX Capital, GGV Capital, Jeneration Capital, Kunlun Capital, Matrix Partners China, Access Technology Ventures, TrustBridge Partners and Yunqi Partners

3) Changce Capital, Gaocheng Capital, Hillhouse Ventures, SIG-China and Tencent Holdings’ $265m venture financing of Beijing Yiou Education Technology

4) The $200m venture financing of Gaosi Education Group by GIC and Warburg Pincus

5) Baring Private Equity Asia, BOC International Holdings, Bohai Zhongsheng, CITIC Securities, CMB International Capital, GoldStone InvestmentLtd , Greater Bay Area Homeland Development Fund, Guangdong Technology Financial GroupLimited, Guangdong Wen’s Investment, Hillhouse Capital Group, Sino-Ocean Capital and Youshan Capital’s venture financing of Shenzhen DianMao Digital Technology for $197.56m.

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.