Each quarter we aim to keep you up to date with a concise review of M&A and fundraising activity in the Technology Sector in the GSA region, together with a look at capital market developments, valuation levels and a deep dive into relevant sector issues with insights from our KPMG experts.
In this issue:
- Mergers & Acquisitions: Following a better-than-expected 2020, deal activity notched up several gears in Q1, with an 65% q-o-q increase across the GSA region (deal count in Germany even doubled), as financial and strategic investors scrambled to acquire tech assets. Business & Productivity Software and IT Consulting & Services remained the most active sub-sectors, together accounting for more than half of the total deal count.
- Fundraising: Fundraising also accelerated, with the number of announced deals increasing by 68% q-o-q. Business & Productivity Software and Financial Software continued to be the most attractive technology sub-sectors. With six unicorn funding deals in the GSA region within the first three months, 2021 is promising to become a stellar year for European start-ups at every stage.
- Capital markets: Despite a pullback in late February, technology stocks continued on an upward trend. The STOXX Europe 600 Technology index increased by 10.8% over the quarter, compared to the STOXX Europe 600 which increased by a (still respectable) 6.9%.
- KPMG Insights: This quarter we summarize the key points from “Pulse of FinTech - Biannual analysis of global fintech investments” a recent KPMG publication. Key takeaways are that M&A is expected to accelerate in 2021, as embedded payment solutions benefit from the new Covid-19 reality, and the rise of FinTech hubs in Central and North Asia and South America.
The KPMG Technology Deal Flash is published quarterly and highlights current M&A and financing activities in the technology sector in the GSA region. You can subscribe to the newsletter so you won't miss the most recent issue.
Partner, Advisory, Deal Advisory, M&A TMT
KPMG AG Wirtschaftsprüfungsgesellschaft