KPMG Technology Deal Flash: Edition Q2/2022

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.

• Mergers & Acquisitions: After reaching record highs in the beginning of the year, tech deal activity slowed down in 2Q22 due to high inflation, geopolitical conflicts, supply chain challenges and recessionary fears. However, Germany remained the most active market in the GSA region.
• Fundraising: Fundraising activities remained resilient in 2Q22, despite geopolitical and macroeconomic headwinds. Startups in the GSA region, as well as Seed and Later-stage funding rounds saw a steep increase in funding activities. Seed and later-stage rounds recorded the highest number of deals since 2018.
  
• Capital markets: Due to unfavorable market conditions, the technology sector suffered from extensive sell-offs. In most subsectors, key valuation metrics decreased. Key subsectors such as Business & Productivity, Application, Network Management and System & Information Management Software also recorded a decline in all valuation multiples.
  
• KPMG Insights: The “as-a-Service” model has revolutionized how technology resources (software, platforms, infrastructure) are provisioned and consumed. Increased adoption of this business model across various industries formed a new impressive trend - Everything-as-a-Service or “XaaS”. KPMG's new report “Future of XaaS” explores the critical signals of change currently influencing the XaaS industry and how companies might address the rising challenges to establish themselves as XaaS providers.

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..