Mergers and acquisitions targeting technology companies have hit a record high in Asia Pacific, Dealogic data shows, and dealmakers expect this M&A pace to continue as the pandemic spurs a shift toward virtual activities in the economy.
Tech M&A has totalled $136.2 billion in 2020, more than double the year-ago levels, according to data provider Dealogic.
Tech deals accounted for 28 percent of the regions’ overall M&A transactions, which totalled $482.4 billion as of Wednesday, the highest share in at least a decade, the data shows.
This boom is a result of technology changing the way our economy works, said Jung Min, co-head of M&A and Technology, Media and Telecom at Goldman Sachs in Asia (ex-Japan).
“For a consumer, it affects how you shop, pay, eat, move and entertain. For a business, it affects how you recruit top employees, source your supply chain, manufacture and, of course, sell to customers,” he added.
In April, Grab Holdings, the largest ride-hailing and food delivery firm in Southeast Asia, went public in the world’s biggest $40 billion merger with a special purpose acquisition company.
Grab’s rival Gojek and e-commerce leader Tokopedia have announced a merger to create a multi-billion dollar tech company in Indonesia’s largest-ever deal.
Mega deals in the pipeline also include a possible take-private of Japan’s Toshiba.
Toshiba has hired UBS to advise on a strategic review, after it dismissed a $20 billion take-private bid from CVC Capital this year.
