The number of foreign tech acquisitions made by Singaporean firms, within Southeast Asia, witnessed a 166% surge from 12 in 2021 to 32 in 2022, according to the DealStreetAsia DATA VANTAGE report SE Asia Tech M&A Review 2023.
About 62.5% of the targets were Indonesian companies, mainly from the fintech and financial services sectors, including banks, added the report, which analysed the M&A landscape in Southeast Asia between 2018 and May 2023.
Singapore-based firms turned out to be the top foreign acquirers in 2022, ahead of US companies that dominated foreign acquisitions of the region’s tech companies in the last five years. By foreign, the report refers to acquisitions made in Southeast Asia, by entities based in a different country than the target firm.
Acquisitions of Southeast Asian firms by US companies stood at 16 in 2022, the same as in the previous year.
Between 2018 and May 2023, US-based firms acquired 75 entities in the region, higher than the number of acquisitions by Singaporean firms in other Southeast Asian regions.
Singapore dominates tech M&A landscape
As the financial and technology hub of the region, Singapore continues to dominate tech M&A activities in Southeast Asia. In 2022, the city-state experienced a 40% year-on-year increase in the number of deals to 81. This accounts for approximately 46% of the overall deal count in the region.
Meanwhile, other markets in the region, especially Indonesia, are witnessing growth in their share of tech M&As. Indonesia recorded a 118% surge in deals to 48 in 2022.
The top twenty largest M&A deals by value between Jan. 2018 and May 2023 involved Singapore- and Indonesia-based companies.
Fintech and e-commerce were top sectors for M&As
The fintech sector was the hotbed for acquisitions in Southeast Asia.
“Fintech firms have also been active acquirers in the region, scooping up traditional financial services firms to bag coveted licences, expand their range of services and buy a readymade customer base, among other reasons,” the report noted. “When combined, fintech-related acquisitions make up about a quarter of all tech M&A transactions in the region.”
The SE Asia Tech M&A Review 2023 report covers M&A transactions by homegrown tech companies in Southeast Asia. It captures:
M&A deal volume across quarters and countries
Analysis of M&A trends across markets and sectors
Top deals across markets and sectors based on identified value
Investor perspectives, and more.
The report is available exclusively to DealStreetAsia – DATA VANTAGE subscribers. Subscribe/upgrade your subscription now to access our entire set of reports.
