KPMG Technology Deal Flash – Edition Q3/2024

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. At the same time, we look at capital market activity, valuation levels and deep dive into relevant sector issues with insights from our KPMG experts.

In this issue:

• Mergers and acquisitions: Following a further downturn in the previous quarter, tech deal activity experienced a notable 19% quarter-over-quarter increase in deal count in Q3 2024. This can be attributed to a fall in ECB interest rates and the introduction of new supportive regulations for investments, such as the EU AI Act and Germany's second Future Financing Act.
• Funding activity: In Q3 2024, VC deal activity witnessed a quarter-over-quarter decline in both deal count and funding value by 3% and 22%, respectively, mainly attributable to an ongoing rise in valuation gaps.
  
• Valuation levels: During the quarter, key valuation metrics experienced downtick across most of the tech sub-sectors owing to ongoing geopolitical and macroeconomic concerns.
• KPMG insights: In an era of advancing technology, business leaders face a critical juncture that can redefine the future of work. To navigate this effectively, companies must prioritize strategic investments in technology, understand employee capabilities, embrace the potential of AI, shape their workforce, and upskill middle managers. KPMG's `Future of Work' examines employee perspectives to assess their firms' preparedness for the future of work.
  

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.