1. Deals Analysis
May 23, 2022

China’s technology industry sees a drop of 35.84% in deal activity in April 2022

By Carmen

China’s technology industry saw a drop of 35.84% in overall deal activity during April 2022, when compared with the last 12-month average, led by Yangtze Optical Fibre and Cable Joint Stock Ltd’s $161.46m acquisition of 12.7% stake in Broadex Technologies, according to GlobalData’s deals database.

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A total of 145 deals worth $1.3bn were announced in April 2022, compared with the 12-month average of 226 deals.

venture financing was the leading category in the month in terms of volume with 135 deals, which accounted for 93.1% of all deals.

In second place was M&A with eight deals, followed by private equity with two transactions, respectively accounting for 5.5% and 1.4% of overall deal activity in the China’s technology industry during the month.

In terms of value of deals, venture financing was the leading deal category in China’s technology industry with total deals worth $972.94m, while M&A and private equity deals totalled $295.32m and $74.28m, respectively.

China technology industry deals in April 2022: Top deals

The top five technology industry deals accounted for 42.1% of the overall value during April 2022.

The combined value of the top five technology deals stood at $565.08m, against the overall value of $1.3bn recorded for the month.

The top five technology industry deals of April 2022 tracked by GlobalData were:

1) Yangtze Optical Fibre and Cable Joint Stock Ltd $161.46m acquisition deal for 12.7% stake in Broadex Technologies

2) The $119.34m acquisition of 19% stake in Hubei Dinghui Microelectronics Material by Hubei Dinglong Holdings

3) Index Ventures,Northern Lights Ventures and SoftBank Vision Fund 2 $110m venture financing deal with Mofa (Shanghai) Information Technology

4) The $100m venture financing of Hangzhou Fork Intelligent Technology by GGV Jiyuan Capital,GL Ventures and Goldman SachsLLC

5) Hainan Zhongxing Future Private Equity Investment Fund $74.28m private equity deal for 5.09% stake in Zhuhai Orbit Aerospace Technology

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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