DEALS ANALYSIS
IoT and AR/VR are key themes in technology deals
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Deals activity by geography
Technology industry deals recorded by GlobalData are up year-on-year (YoY) in all regions except North America.
Asia-Pacific is leading in terms of deal volume with a 22% growth YoY in the number of deals recorded. Europe shows a 12% growth in the number of deals recorded, while South and Central America and Middle East and Africe only recorded slow growth at 4% and 1% YoY, respectively.
North America is lagging behind, with a 6% drop in deal volume recorded YoY, but is the leading region in terms of deal value.
M&A snapshot: North America
| Deal type | Total deal value ($m) | Total deal count | YOY change (volume) |
| Acquisition | 831006 | 3682 | -74% |
| Partnership | 4319 | 1009 | 71129% |
| Asset transaction | 75028 | 930 | 235% |
| Equity offering | 67470 | 621 | 334% |
| Debt offering | 363602 | 618 | 144% |
| Private equity | 85438 | 580 | -58% |
| Venture financing | 12017 | 538 | 250% |
| Merger | 28159 | 68 | 1918% |
A snapshot of M&A activity in North America, as recorded by GlobalData, shows a 61% YoY growth in acquisitions with a total value of $3,378,716m.
Mergers are down 24% YoY with a total value of $481,352m, while asset transactions have seen a modest YoY growth of 3% with a total value of $235,865m.
Deals activity by theme
GlobalData’s tracking of technology industry deals by theme, as pictured in the chart above, shows that the volume of deals related to the internet of things (IoT) and virtual and augmented reality (VR and AR) increased between 2019 and 2020. The number of deals related to artificial intelligence (AI) saw a moderate decline, from 2,459 recorded in 2019 to 2,146 recorded in 2020, while the number of deals related to blockchain and digital media fell slightly.
GlobalData’s analysis reveals a growth in deal value between 2019 and 2020 for most of the key technology themes, as indicated in the table below. Connectivity-related deals saw the biggest value increase, growing by 134% from 2019-2020. The value of big data-related deals grew by 76% in the period, while cybersecurity and AI saw a growth in deal value of 60% and 65%, respectively.
The total value deals related to the IoT, which had emerged as the fastest-growing technology theme driving deal volume between 2016 and 2019, according to GlobalData’s tracking, showed a more moderate growth of 34% from 2019-2020.
| Deals value ($m) by theme | 2019 | 2020 | 2021 |
| IoT | 241,241.93 | 323,508.40 | 34,009.25 |
| Big data | 121,632.45 | 213,611.45 | 30,924.97 |
| AI | 127,068.07 | 209,493.55 | 20,666.40 |
| Connectivity | 133,576.76 | 313,219.70 | 18,469.12 |
| Cybersecurity | 49,340.52 | 78,942.69 | 12,581.41 |
Note: All numbers as of 20 January 2021. For more insight and data, visit GlobalData's Technology Intelligence Centre.
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