KPMG Technology Deal Flash – Edition Q3/2020

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

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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.

The topics of this issue

  • Mergers & Acquisitions: M&A activities increased by 48% compared to Q2 2020 and reaching levels last seen in 2019. Germany continued to be the country with the highest deal volume, while Switzerland noted the highest growth. The return of mega-deals with the takeover of RIB Software by Schneider Electric for 1.4 billion euros in the third quarter of 2020 may indicate more positive market developments for the future.
  • Fundraising: Funding activity remained unchanged in the third quarter, showing a small improvement in the number of deals by 5% and the deal value by 3%.
  • Capital markets: After the sharp decline of the financial markets in March of this year, share prices rebounded after the announcement of targeted fiscal measures to immediately deal with the crisis. The volatility remains at a relatively high level, which is due to the remaining uncertainty in the markets.
  • KPMG Insights: We share our insights from the latest KPMG publication with the reader, which contains valuable facts and analyzes topics relating to the sustainability of the Software-as-a-Service (SaaS) model during economic turbulence.