KPMG Technology Deal Flash – Edition Q4/2024

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: Tech deal activity continued its upward trend from the previous quarter, with deal volume increasing by 20% q-o-q. This growth was primarily driven by lower interest rates and rising investments in AI-based technologies. The German GSA tech sector proved to be the main driver of this momentum, whereas Switzerland, in contrast, experienced a decline in deal activity over the same period.
• Funding activity: Funding activity in the GSA region remained stable in 4Q24 with a marginal increase of 1% in the number of deals. However, due to political uncertainty, investors were reluctant to pursue high-value transactions, resulting in a 19% decrease in deal value.
• Valuation levels: During the quarter, key valuation metrics showed an upward trend, mainly driven by stabilising global inflation and falling interest rates.
• KPMG insights: In an era of rapidly improving technology, traditional telecom companies are under increasing pressure from tight margins, heightened competition, ever-changing customer expectations and growing investment needs. To cope effectively, companies are seeking to transform themselves into technology. KPMG's report `From telco to techco: Towards tomorrow's telecom' delves into this revolution in the industry, highlighting the complexities and components essential for successful business transformation.
  

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.