KPMG Technology Deal Flash – Edition Q2/2022

M&A, Funding, Valuation of technology companies in the current quarter


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, together with a look at capital market developments, valuation levels and a deep dive into particular sector issues with insights from our KPMG experts.
In this issue:

  • Mergers & Acquisitions: After reaching record highs in the beginning of the year, tech deal activity slowed down in 2Q22 due to high inflation, geopolitical conflicts, supply chain challenges and recessionary fears. However, Germany remained the most active market in the GSA region.
  • Fundraising: Fundraising activities remained resilient in 2Q22, despite geopolitical and macroeconomic headwinds. Startups in the GSA region, as well as Seed and Later-stage funding rounds saw a steep increase in funding activities. Seed and later-stage rounds recorded the highest number of deals since 2018.

  • Capital markets: Due to unfavorable market conditions, the technology sector suffered from extensive sell-offs. In most subsectors, key valuation metrics decreased. Key subsectors such as Business & Productivity, Application, Network Management and System & Information Management Software also recorded a decline in all valuation multiples.

  • KPMG Insights: The “as-a-Service” model has revolutionized how technology resources (software, platforms, infrastructure) are provisioned and consumed. Increased adoption of this business model across various industries formed a new impressive trend - Everything-as-a-Service or “XaaS”. KPMG's new report “Future of XaaS” explores the critical signals of change currently influencing the XaaS industry and how companies might address the rising challenges to establish themselves as XaaS providers.