1. Deals Analysis
August 19, 2020

South and Central America’s technology industry sees a drop of 20.3% in deal activity in Q2 2020

By Carmen

South and Central America’s technology industry saw a drop of 20.3% 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 55 deals worth $241.85m were announced for the region during Q2 2020, against the last four-quarter average of 69 deals.

Of all the deal types, venture financing saw most activity in Q2 2020 with 36, representing a 65.5% share for the region.

In second place was M&A with 17 deals, followed by private equity deals with two transactions, respectively capturing a 30.9% and 3.6% share of the overall deal activity for the quarter.

In terms of value of deals, venture financing was the leading category in South and Central America’s technology industry with $165.81m, followed by M&A deals totalled $76.04m.

South and Central America technology industry deals in Q2 2020: Top deals

The top five technology deals accounted for 79% of the overall value during Q2 2020.

The combined value of the top five technology deals stood at $190.96m, against the overall value of $241.85m recorded for the quarter.

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

1) LGT Lightstone Aspada’s $80m venture financing of CargoX Transportes

2) The $70.9m acquisition of Productora de Software by Perficient

3) Endeavor Catalyst, Redpoint Ventures and SoftBank Group’s $22m venture financing of Cortex Intelligence

4) The $11.56m venture financing of Sanar by DNA Capital Consultoria, e.Bricks Ventures, Valor Capital Group and Vox Capital

5) HDI Seguros and REDPOINT EVENTURES MANAGEMENT OF RESOURCES AND CONSULTANCY’s venture financing of Accountfy Servico de Software for $6.5m.

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 artificial intelligence 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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