1. Deals Analysis
February 7, 2021

China’s technology sees a rise of 7.41% in cross border deal activity in Q4 2020

By Carmen

Led by SK Hynix’s $9bn asset transaction with Intel, China’s technology industry saw a rise of 7.41% in overall cross border deal activity during Q4 2020, when compared with the last four-quarter average, according to GlobalData’s deals database.

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A total of 58 cross border deals worth $12.12bn were announced in Q4 2020, compared with the last four-quarter average of 54 deals.

venture financing was the leading category in the quarter with 39 cross border deals which accounted for 67.2% of all deals.

In second place was M&A with 15 deals, followed by private equity with four transactions, respectively accounting for 25.8% and 6.9% of overall cross border deal activity in the China’s technology industry during the quarter.

In terms of value of cross border deals, M&A was the leading deal category in China’s technology industry with total deals worth $9.37bn, while venture financing and private equity deals totalled $2.5bn and $249.04m respectively.

China technology industry cross border deals in Q4 2020: Top deals

The top five technology industry cross border deals accounted for 84.4% of the overall value during Q4 2020.

The combined value of the top five technology cross border deals stood at $10.23bn, against the overall value of $12.12bn recorded for the quarter.

The top five technology industry cross border deals of Q4 2020 tracked by GlobalData were:

1) SK Hynix’s $9bn asset transaction with Intel

2) The $500m venture financing of Hangzhou Lianke Meixun Biomedical Technology by GL Ventures, Hillhouse Capital Group, Tencent Holdings and TrustBridge Partners

3) China Structural Reform Fund, Eastern Bell Capital, Genesis Capital China, GLP-C&D Equity Investment Fund, Legend Capital, Matrix Partners China, Shenzhen Cowincapital, Tencent Holdings, Tiger Management, Xiamen C&D and Yunfeng Capital’s $315m venture financing of ZKH Industrial Supply

4) The $210m venture financing deal with Zhejiang Yiqi Education Technology by Bojia Capital, China Fortune Financial Group, Chuangzhi Capital, Fortune Caizhi, Guangzhou Yingrui Capital Management, SAIF Partners China and The Rise Fund

5) GIC and Warburg Pincus’ venture financing with Gaosi Education Group for $200m.

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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