Each quarter we aim to keep you up to date with a concise review of the M&A and fundraising activity in the technology sector in GSA. We also look at the activity of capital markets, valuation levels and provide a deep dive into relevant sector issues with insights from our KPMG experts.
In this issue:
- Mergers & Acquisitions: Following a downturn in the previous quarter, the tech deal landscape experienced another 6% quarter-over-quarter decline in deal count in Q2 2024, attributed to unfavorable interest rates and macroeconomic conditions that impacted deal activity across various sectors. Despite the current challenges, the tech M&A landscape is expected to grow in 2H 2024.
- Funding activity: VC deal volume experienced a 10% growth on a quarter-over-quarter basis. Simultaneously, the deal value witnessed a significant rise of 164% from the last quarter, fueled by growing investments in technologies based on AI, ML, and SaaS.
- Valuation levels: Valuation metrics increased in most subsectors after declining as a result of inflation and rising interest rates. This was mainly due to a rising adoption of process automation and digitization across the industry.
- KPMG Insights: The automotive industry is undergoing significant change due to its convergence with the technology sector. This is driven by advances in electric powertrains, self-driving technology, and the promise of an enhanced customer experience. KPMG's survey “Getting real about the EV transition” reveals the change in sentiment at executive level, and the key concerns and challenges that are making global automotive leaders more cautious.
The KPMG Technology Deal Flash is published quarterly and highlights current M&A and financing activities in the technology sector in the GSA region. Subscribe to our newsletter to make sure you never miss an issue.
