SINGAPORE Trends and Developments Contributed by: Terence Quek, Benjamin Cheong, Favian Tan and Rajesh Sreenivasan, Rajah & Tann Singapore
Tech M&A in Singapore: An Overview of the Current Landscape According to a PwC report, the global mergers and acquisitions (M&A) landscape experienced a decline in both volume and value during the first half of 2024. Specifically, M&A volume fell by around 14%, while M&A value decreased by 1% compared to the already-low levels seen in the second half of 2023. When comparing these figures to the first half of 2023, M&A vol- ume dropped by around 25% while M&A value increased slightly, by around 5%. In the first half of 2024, the technology, media and telecommunications (TMT) sector emerged as the most active sector on the M&A front for deal-making, contributing to approximately 20% of deal volume and 27% of deal value in the first half of 2024. Closer to home, according to a report by Data- site, M&A activity in the Asia-Pacific (APAC) region remained subdued in the first half of 2024. There was a total of 4,564 transactions announced during this period, representing a 11.5% decline compared to the same period in 2023. The total deal value announced in the APAC region also experienced a significant decline, falling by 24.6% year-on-year: from USD381 bil- lion in the first half of 2023 to USD288 billion in the first half of 2024. Only three megadeals were recorded in the first half of 2024. According to Datasite, the TMT sector has maintained the highest number of deals in the first half of 2024, with 1,287 deals announced in the APAC region. However, this represents a year-on-year decline of 10.5% in deal volume. Despite a 21.4% year-on-year decline in deal
value, the TMT sector also maintained its leading position in deal value by contributing USD50.6 billion in the first half of 2024. Buyers originate primarily from China, India, the United States, Japan and South Korea. In January 2024, SentinelOne, Inc, an American cybersecurity company, acquired Pingsafe Pte Ltd, a Singapore-based cloud-native applica- tion protection platform company, along with its Indian and United States subsidiaries, in a trans- action valued at over USD100 million. In June 2024, a consortium comprising Kohlberg Kravis Roberts & Co LP (KKR), an American investment firm, and Singapore Telecommunica- tions Limited (Singtel), a Singaporean telecom- munications company, announced its intentions to acquire a USD1.75 billion stake in a Singa- pore-based data centre provider, STT GDC Pte Ltd. To date (7 November 2024), KKR-Singtel’s proposed acquisition marks the largest digital infrastructure investment in South-East Asia (SEA) in 2024. Additionally, in August 2024, EQT Private Capi- tal Asia, a Hong Kong-based privacy equity firm, announced its acquisition of PropertyGuru Group Limited (PropertyGuru), a Singapore- based property technology platform company, in an all-cash transaction valued at USD1.1 bil- lion. The deal will take PropertyGuru private and off the New York Stock Exchange. A combination of factors has contributed to the challenging environment for M&A, both globally and within the APAC region, in the first half of 2024. Some of these factors include the follow- ing. • High interest rates – elevated interest rates can increase the cost of borrowing for M&A
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