1. Deals Analysis
February 28, 2021

Middle East and Africa’s technology industry saw a drop of 29.82% in deal activity during January 2021

By Carmen

Middle East and Africa’s technology industry saw a drop of 29.82% in deal activity during January 2021, when compared with the last 12-month average, led by $2.6bn acquisition of ION Acquisition1 Ltd and Taboola.Com, according to GlobalData’s deals database.

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A total of 40 technology industry deals worth $3.12bn were announced for the region in January 2021, against the 12-month average of 57 deals.

Of all the deal types, venture financing saw most activity in January 2021 with 26 transactions, representing a 65% share for the region.

In second place was M&A with 12 deals, followed by private equity deals with two transactions, respectively capturing a 30% and 5% share of the overall deal activity for the month.

In terms of value of deals, M&A was the leading category in Middle East and Africa’s technology industry with $2.65bn, while venture financing and private equity deals totalled $328.64m and $137.57m, respectively.

Middle East and Africa technology industry deals in January 2021: Top deals

The top five technology deals accounted for 97.1% of the overall value during January 2021.

The combined value of the top five technology deals stood at $3.03bn, against the overall value of $3.12bn recorded for the month.

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

1) The $2.6bn merger of ION Acquisition1 Ltd and Taboola.Com

2) The $208m venture financing deal with DriveNets by Atreides Management, Bessemer Venture Partners, D1 Capital Partners and Pitango Venture Capital

3) FIMI Opportunity Funds’ $137.57m private equity deal with E&M Computing

4) The $50m acquisition of Alcide.IO by Rapid7

5) Insight Partners, S Capital and TLV Partners’ venture financing of Run:AI for $30m.

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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