The US Federal Reserve's interest rate cut has infused optimism into the global economy, and India's recent elections have driven an increase in deal activity. Technology sector players are actively capitalising on this upswing, as evident in Q3 2024's robust mergers and acquisitions, private equity investments, and initial public offerings. Investors are confidently investing, drawn by favorable market conditions and promising exit opportunities, and actively positioning the country as a key destination for incoming capital.
Key insights from the Technology Dealtracker Q3 2024:
- Shift towards strategic investments: The quarter witnessed highest volumes since Q2 2023 and lowest values for the year 2024, reflecting more strategic investments rather than large-scale acquisitions. However, the quarter witnessed 12 deals valued at and over USD 20 million. The sector holds a 13% share in terms of overall quarterly deal activity showing sector’s importance and its continued attractiveness to investors.
- Outbound deal momentum: M&A activity saw rebound after a significant drop in Q1 2024, also marking the highest deal volumes since Q2 2023. Outbound activity reached its highest quarterly volumes in the last three years, with outbound deals making up 62% of the total M&A deal values this quarter, reflecting a strong trend of Indian IT companies expanding their international presence.
- Small deals fuel growth: The PE space experienced its second highest deal volumes in last one year and the highest deal values showing healthy investment environment. However, the quarter was dominated with small ticket transactions (< 5mn), making up nearly 74% of the deal activity showing notable preference
