China overtakes US as top nation for technology acquisitions

China has overtaken the United States for the first time as the world’s biggest “acquiring nation” for mergers and acquisitions in the technology industry, accounting for a 45 per cent share of the market in the first four months of this year, according to a report from Dealogic.

It estimated that Chinese technology acquisitions reached a new high of US$65.7 billion through 456 transactions, up from the previous record of US$41.6 billion through 434 deals in the same period last year.

“Historically, the US had consistently been the biggest buying nation per year-to-date period and annually since 1995 [in technology mergers and acquisitions],” the report said.

US mergers and acquisitions in the technology sector totaled US$45.6 billion in the first four months of this year.

China’s new record came amid the increasing deal sizes in the tech sector led by Chinese technology companies, which are making a big foray into the global information technology industry.

China’s outbound technology-related mergers and acquisitions reached a new annual high of US$17.6 billion for 69 transactions in the first four months of this year, topping the US$14.9 billion recorded for the whole of last year.

Chinese aviation and logistics conglomerate HNA Group took over Ingram Micro, a US-based hi-tech products distributor, in a deal worth US$6 billion in February, becoming the biggest China outbound technology acquisition on record.