1. Deals Analysis
November 9, 2020

South and Central America’s technology industry sees a rise of 51.7% in deal activity in Q3 2020

By Carmen

South and Central America’s technology industry saw a rise of 51.7% in overall deal activity during Q3 2020, when compared to the four-quarter average, according to GlobalData’s deals database.

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A total of 91 deals worth $5.8bn were announced for the region during Q3 2020, against the last four-quarter average of 60 deals.

Of all the deal types, M&A saw most activity in Q3 2020 with 43, representing a 47.3% share for the region.

In second place was venture financing with 43 deals, followed by private equity deals with five transactions, respectively capturing a 47.3% and 5.5% share of the overall deal activity for the quarter.

In terms of value of deals, M&A was the leading category in South and Central America’s technology industry with $4.84bn, while venture financing and private equity deals totalled $705.66m and $252.61m, respectively.

South and Central America technology industry deals in Q3 2020: Top deals

The top five technology deals accounted for 90.5% of the overall value during Q3 2020.

The combined value of the top five technology deals stood at $5.25bn, against the overall value of $5.8bn recorded for the quarter.

The top five technology industry deals of Q3 2020 tracked by GlobalData were:

1) America Movil SAB DE CV, Telefonica Brasil and TIM Participacoes’ $3.11bn asset transaction with Oi

2) The $1.11bn merger of Linx and STNE Participacoes

3) Liberty Latin America’s $500m acquisition of Telefonica Costa Rica

4) The $300m venture financing of Rappi by T Rowe Price Associates

5) Constellation Investimentos e Participacoes, Endeavor Catalyst, Lone Pine Capital, SoftBank and Tiger Global Management’s private equity deal with Companhia Brasileira de Tecnologia para E-commerce for $225m.

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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