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February 4, 2022updated 07 Feb 2022 10:03am

Private equity deals increased significantly in the tech industry in H2 2021

By Saywah Mahmood

In the second half of 2021 the number of private equity deals increased significantly by 58.3% from the same period in 2020, new data reveals.

This marks an acceleration in growth from the 55.6% increase in deals that occurred in H1 2021 relative to the same period a year earlier, according to data from research firm GlobalData.

During this time, the region that saw the biggest increase in the number of deals was The Asia-Pacific region.

Deals rose by 100% in the region.

From the second half of 2020 to the second half of 2021, the largest regional increase in deals was also seen in The Asia-Pacific region.

During second half of 2021, private equity deals accounted for 0.6% of all deals taking place in the sector. This represents an increase from the figure of 0.4% in second half of 2020.

GlobalData’s deals database is a comprehensive repository that looks at mergers, acquisitions, venture financing, equity offerings, asset transactions, partnerships and debt offerings taking place daily between thousands of companies across the world.

The database details key deal information, such as deal summary, deal rationale, deal financials, parties involved, advisors and deal payment modes.

By tracking the proportion of various types of deals in each sector we can gauge which sectors are seeing growth and where others are struggling.

The highest value private equity deal announced in 2021 (where the deal value was known), is the the planned acquisition of ILEC Business from Lumen Technologies by Apollo Global Management.

The deal is set to be worth $7.5bn.

The database states that the rationale behind this deal was as follows: “The transaction will enable transaction Apollo Funds to provide a robust, scaled local network, as well as the operations and back-office support to meet the accelerating demand for high-bandwidth connectivity and fiber technology.”