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: in line with the previous quarter, the M&A market experienced deal momentum and continued to be impacted by ongoing economic slowdown, inflationary pressure and deteriorating geopolitical conditions. The number of deals in the technology sector in the GSA region decreased by 15% in 2023 compared to that of the previous year. Digitization of businesses through SaaS and AI-based solutions maintained the same level of activity.
- Funding activity: after VC funding activity increased in Q3 23, funding activities continued to drag as a result of macro-economic headwinds, higher debts, falling valuations, slowdown in IPOs and a parched exit environment. However, AI, ML and other novel technologies saw increasing VC interests.
- Valuation levels: valuation metrics increased in most subsectors after their inflation and rising interest rate-based decline. This was mainly due to an increase in the number of processes which have become automated and digitized throughout the industry.
- KPMG Insights: new challenges led to a transformation of global supply chains, with companies focusing on enhancing supply chain visibility, embracing technology and creating operating model capabilities to minimize disruptions and maintain a competitive advantage in both the short and the long term. KPMG's insights into the supply chain sector examine how the sector is facing new challenges and highlights those which supply chain leaders need to be aware of to prepare for an uncertain future.
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.
