1. Deals Analysis
May 11, 2021

South and Central America’s technology industry saw a rise of 35.43% in cross border deal activity in Q1 2021

By Carmen

Led by $2bn venture financing of Loggi Tecnologia, South and Central America’s technology industry saw a rise of 35.43% in cross border deal activity during Q1 2021, when compared to the last four-quarter average, according to GlobalData’s deals database.

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A total of 43 cross border deals worth $4.46bn were announced for the region during Q1 2021, against the last four-quarter average of 31.75 deals.

Of all the deal types, venture financing saw most activity in Q1 2021 with 25 deals, representing a 58.1% share for the region.

In second place was M&A with 15 deals, followed by private equity deals with three transactions, respectively capturing a 34.9% and 7% share of the overall cross border deal activity for the quarter.

In terms of value of cross border deals, venture financing was the leading category in South and Central America’s technology industry with $3.36bn, while private equity and M&A deals totalled $1.02bn and $85.35m, respectively.

South and Central America technology industry cross border deals in Q1 2021: Top deals

The top five technology cross border deals accounted for an 85.6% share of the overall value during Q1 2021.

The combined value of the top five cross border deals stood at $3.82bn, against the overall value of $4.46bn recorded for the quarter.

The top five technology industry cross border deals of Q1 2021 tracked by GlobalData were:

1) CapSur Capital, Microsoft, SoftBank Group and Verde Asset Management’s $2bn venture financing of Loggi Tecnologia

2) The $1bn private equity deal with Telefonica Chile by KKRInc

3) Advent International, Altimeter Capital Management, Andreessen Horowitz, Caffeinated Capital, CPPIB Capital, D1 Capital Partners, DST Global, Fifth Wall Ventures Management, GIC, Monashees, QED Investors, Silver Lake Waterman, Soros Fund Management, Tarsadia Investments, Tiger Global Management, Vulcan Capital Management and Zigg Capital’s $425m venture financing of Loft Holdings

4) The $205.34m venture financing deal with Loggi Tecnologia by CapSur Capital, GGV Capital, Microsoft, Monashees, SoftBank Group and Sunley House Capital Management

5) Brasil Capital, Dynamo, Lakewood Capital, Monashees, SoftBank Group and VELT Partners Investimentos’ venture financing with MadeiraMadeira for $190m.

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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