1. Deals Analysis
May 12, 2021

China’s technology industry sees a rise of 45.29% in cross border deal activity in Q1 2021

By Carmen

Led by $700m venture financing of Beijing Wusi Chuangxiang Technology, China’s technology industry saw a rise of 45.29% in overall cross border deal activity during Q1 2021, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 81 cross border deals worth $3.58bn were announced in Q1 2021, compared with the last four-quarter average of 55.75 deals.

venture financing was the leading category in the quarter with 58 cross border deals which accounted for 71.6% of all deals.

In second place was M&A with 21 deals, followed by private equity with two transactions, respectively accounting for 25.9% and 2.5% of overall cross border deal activity in the China’s technology industry during the quarter.

In terms of value of cross border deals, venture financing was the leading deal category in China’s technology industry with total deals worth $2.9bn, while M&A and private equity deals totalled $441.86m and $240m, respectively.

China technology industry cross border deals in Q1 2021: Top deals

The top five technology industry cross border deals accounted for 63.02% of the overall value during Q1 2021.

The combined value of the top five technology cross border deals stood at $2.26bn, against the overall value of $3.58bn recorded for the quarter.

The top five technology industry cross border deals of Q1 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 $500m venture financing of Momenta.ai by Daimler, Robert Bosch, SAIC Motor, Temasek Holdings (Private), Tencent Holdings, Toyota Motor and Yunfeng Capital

3) 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’s $400m venture financing of Horizon Robotics

4) The $360m venture financing deal with Beijing Calorie Technology by Bertelsmann Asia Investments, Coatue Management, GGV Capital, Hillhouse Capital Group, Jeneration Capital, Morningside Venture Capital Group, SoftBank Vision Fund and Tencent Holdings

5) The merger with Ruhnn Holding and RUNION Mergersub for $296.4m.

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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