1. Deals Analysis
August 20, 2020

North America’s technology industry sees a drop of 19.8% in deal activity in Q2 2020

By Carmen

North America’s technology industry saw a drop of 19.8% in overall deal activity during Q2 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 1662 deals worth $35.8bn were announced for the region during Q2 2020, against the last four-quarter average of 2073 deals.

Of all the deal types, venture financing saw most activity in Q2 2020 with 1096, representing a 65.9% share for the region.

In second place was M&A with 448 deals, followed by private equity deals with 118 transactions, respectively capturing a 27% and 7.1% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in North America’s technology industry with $18.96bn, while venture financing and private equity deals totalled $13.09bn and $3.75bn, respectively.

North America technology industry deals in Q2 2020: Top deals

The top five technology deals accounted for 40.8% of the overall value during Q2 2020.

The combined value of the top five technology deals stood at $14.62bn, against the overall value of $35.8bn recorded for the quarter.

The top five technology industry deals of Q2 2020 tracked by GlobalData were:

1) The merger of GCI Liberty and Liberty Broadband Corporation for $9.39bn

2) The $2.5bn acquisition of Navihealth by OptumHealth

3) Cisco Systems’ $1bn acquisition of ThousandEyes

4) The $985m acquisition of Finicity by Mastercard

5) Equinix’s asset transaction with BCE for $750m.

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.

 

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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