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 trends with insights from our KPMG experts.
In this issue:
- Mergers & Acquisitions: 2021 ended on a high note, with over 440 TMT deals in the GSA region, and deal volume up by 59% in 2021 compared to 2020. The key deal activity driver in the GSA region was the ongoing digital transformation trend and the persisting appeal for German tech assets.
- Fundraising: Funding activity bounced back in 4Q21 reaching the pre-pandemic levels. Many tech startups managed to successfully secure funding, as the demand for digital platforms continued to rise. A number of international investment firms specifically targeted European startups to access cutting-edge technologies at lower valuation. 4Q21 saw a 96% q-o-q increase in seed funding mainly due to active financial support by EU governments.
- Valuation levels: In 4Q21, key valuation metrics across a majority of the TMT sub-sectors declined. However, high-growth sectors continued to show a higher valuation including Multimedia & Design Software, Financial and Business & Productivity Software. Fintech digitization and automation of operational landscape drove the valuation of these sub-sectors.
- KPMG Insights: The ongoing digital transformation across industries brings about a new set of cyber security challenges for businesses. A vast majority of organizations believe that a robust cyber strategy is important for building trust of all stakeholders. The KPMG report “Cyber security considerations 2022” lays out eight key cyber security topics that respective decision maker should prioritize facing increasing cyber security threats.
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.
