1. Deals Analysis
February 16, 2021

China’s technology industry sees a rise of 42.42% in cloud deal activity in January 2021

By Carmen

China’s technology industry saw a rise of 42.42% in overall cloud deal activity during January 2021, when compared with the last 12-month average, led by Beijing Xicheng Jinrui Equity Investment Fund Management, Boyu Capital Consultancy, China Development Bank, China ReformLtd, CSC Financial, FountainVest Partners, Goldman Sachs Asia Securities, Haitong Securities, HOPU Jinghua (Beijing) Investment ManagementLimited, JIC TechnologyLimited, JinYi Capital, National Manufacturing Transformation and Upgrading Fund, Primavera Capital Group and Sequoia Capital China’s $700m venture financing of Beijing Wusi Chuangxiang Technology, according to GlobalData’s deals database.

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A total of 47 cloud deals worth $1.5bn were announced in January 2021, compared with the 12-month average of 33 deals.

venture financing was the leading category in the month in terms of volume with 43 deals, which accounted for 91.5% of all cloud deals.

In second place was M&A with three cloud deals, followed by private equity with one transactions, respectively accounting for 6.4% and 2.1% 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 $1.44bn, while private equity and M&A deals totalled $40m and $20.21m respectively.

China technology industry cloud deals in January 2021: Top deals

The top five technology industry cloud deals accounted for 88.7% of the overall value during January 2021.

The combined value of the top five technology cloud deals stood at $1.33bn, against the overall value of $1.5bn recorded for the month.

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

1) Beijing Xicheng Jinrui Equity Investment Fund Management, Boyu Capital Consultancy, China Development Bank, China ReformLtd, CSC Financial, FountainVest Partners, Goldman Sachs Asia Securities, Haitong Securities, HOPU Jinghua (Beijing) Investment ManagementLimited, JIC TechnologyLimited, JinYi Capital, National Manufacturing Transformation and Upgrading Fund, Primavera Capital Group and Sequoia Capital China’s $700m venture financing of Beijing Wusi Chuangxiang Technology

2) The $400m venture financing of Horizon Robotics by Aspex, Baillie Gifford, China Securities, Citic Private Equity Funds Management, CloudAlpha Tech Fund, Contemporary Amperex Technology, Hermitage Capital HK, Neumann Advisors, ORIX, SDHS Capital, YF Capital and Yuantai Changqing Fund

3) CICC Capital ManagementLimited and Tencent Investment’s $140m venture financing of Shanghai Woqu Information Technology

4) The $50.5m venture financing deal with Shanghai Woqu Information Technology by Sequoia Capital China Fund

5) Carmignac’s private equity with EHang for $40m.

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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