1. Deals Analysis
April 6, 2021

China’s technology industry sees a drop of 33.33% in cloud deal activity in February 2021

By Carmen

China’s technology industry saw a drop of 33.33% in overall cloud deal activity during February 2021, when compared with the last 12-month average, led by BYD Auto, Changzhou Xingyu Car Lamp, Dongfeng Asset Management, Great Wall Motor, Shanghai AI Innovation and Sunny Optical Technology (Group)’s $350m venture financing of Horizon Robotics, according to GlobalData’s deals database.

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A total of 24 cloud deals worth $674.47m were announced in February 2021, compared with the 12-month average of 36 deals.

venture financing was the leading category in the month in terms of volume with 21 deals, which accounted for 87.5% of all cloud deals.

In second place was private equity with two cloud deals, followed by M&A with one transactions, respectively accounting for 8.3% and 4.2% of overall deal activity in the China’s technology industry during the month.

In terms of value of cloud deals, venture financing was the leading deal category in China’s technology industry with total deals worth $659.01m, followed by private equity deals totalled $15.46m.

China technology industry cloud deals in February 2021: Top deals

The top five technology industry cloud deals accounted for 83.03% of the overall value during February 2021.

The combined value of the top five technology cloud deals stood at $560.02m, against the overall value of $674.47m recorded for the month.

The top five technology industry cloud deals of February 2021 tracked by GlobalData were:

1) BYD Auto, Changzhou Xingyu Car Lamp, Dongfeng Asset Management, Great Wall Motor, Shanghai AI Innovation and Sunny Optical Technology (Group)’s $350m venture financing of Horizon Robotics

2) The $77.07m venture financing of Shanghai Blacklake Technology by BAI Capital, GGV Capital, Huaxing New Economy Fund, Lightspeed China Partners, Temasek Holdings (HK) and Zhen Fund

3) Qingdao Guoxin Financial Holding, Qingdao Jiaozhou Industrial Fund and Qingdao Urban Construction Investment (Group)’s $46.57m venture financing of Shanghai Gaozhong Information Technology

4) The $46.39m venture financing deal with Shanghai Bojun Software Technology by Youzan

5) CCV Capital Partners, eWTP Tech Innovation Fund, N5 Capital, ParadoxGerman consortium and Wuyue Capital’s venture financing with Shenzhen Eicang Technology for $40m.

Verdict deals analysis methodology

This analysis considers only announced and completed cloud-deals 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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