1. Deals Analysis
November 25, 2019

China’s technology industry sees a rise of 32.2% in deal activity in October 2019

By Carmen

China’s technology industry saw a rise of 32.2% in overall deal activity during October 2019, when compared with the last 12-month average, according to GlobalData’s deals database.

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A total of 193 deals worth $2.78bn were announced in October 2019, compared to the 12-month average of 146 deals.

Venture financing was the leading category in the month in terms of volume with 169 deals which accounted for 87.6% of all deals.

In second place was M&A with 20 deals, followed by private equity with four transactions, respectively accounting for 10.4% and 2.1% 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 $1.58bn, followed by venture financing deals totalled $1.2bn.

China technology industry deals in October 2019: Top deals

The top five technology industry deals accounted for 47.2% of the overall value during October 2019.

The combined value of the top five technology deals stood at $1.31bn, against the overall value of $2.78bn recorded for the month.

The top five technology industry deals of October 2019 tracked by GlobalData were:

1) Guojin Industrial Transfer’s $490.69m acquisition of Shenzhen O-film Tech

2) The $267.97m acquisition of Scienjoy by Wealthbridge Acquisition

3) Cowin Venture Capital, Ivy Capital, Morningside Venture Capital, SAIF Partners, Softbank China Venture Capital, Tencent Holdings, Tiger Global Management and Zheshang Venture Capital Management’s $211.71m venture financing of Taimei Technology

4) The $200m venture financing of Kindler’s Information Technology by Beishang Capital, CDH Investments, Gaorong Captial and Mingde Holdings

5) Science City (Guangzhou) Investment Group’s acquisition of Bluedon Information Security Technology for $142.41m.

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 big data 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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