Investment in Asia Pacific based companies have continued to increase, according to Online Agility, a Right Click Capital company. The Internet DealBook report for Q1 2015 shows that total deal value grew 41 percent in the Asia Pacific region over the last 12 months. The ‘Transactions’ sector experienced the greatest growth, while interest in Games and Hardware & Infrastructure dropped drastically.
Online Agility tracked US$18.3 billion across 881 deals in Q1 2015, a decrease of 39.3 percent from US$30.1 billion, but a slight increase from 865 deals in Q1 2014. The deals were placed into four regional sectors (Asia/Pacific, Europe, North America and Rest of World) and eight industry sectors (ecommerce, media, games, hardware & infrastructure, software & services, marketing, transactions, and mobile & apps).
The average deal value for acquisitions and investments in the Asia Pacific region increased over 54 percent from about $32 million in Q1 2014 to $49.3 million in Q1 2015. The average deal value for investments only in the region is $50.6 million, about 110 percent higher than Q1 2015. However, average deal value for acquisitions in the Asia Pacific region dropped by 78 percent in the same 12 months.
North America and the Middle East (which makes up the majority of ‘Rest of World’) have experienced the steepest decline in average deal values: 52 percent and 48.4 percent respectively.
The average deal value for investments across all regions and sectors increased about 23.6 percent from US$19.3 million to $23.9 million in the last 12 months. However, acquisitions decreased significantly (over 70 percent) from $446.3 million to $133.2 million in the same period (excluding Facebook’s acquisition of WhatsApp).
The number of deals dropped in all sectors except Marketing, Mobile & Apps, and Transactions; and average deal values increased in Marketing (23.2 percent, from approximately $17 million to $21 million), Media (23.1 percent, from approximately $27 million to $31 million), and Transactions (49.8 percent, from $29 million to $41 million). The average deal values of acquisitions have decreased in all sectors except for Transactions, which had a six percent increase.
Games and Hardware & Infrastructure experienced the largest decline in the last 12 months, with average deal values in Games decreasing by 90.1 percent (from $43 million to $7 million), and Hardware & Infrastructure decreasing by 89.4 percent (from $229 million to $27 million).
- Asia-Pacific companies increasingly attracting investment
- Investors most interested in companies operating in the ‘Transactions’ sector, followed by Marketing and Media
- Hardware & Infrastructure and Games significantly less appealing to investors than 12 months ago
- Acquisitions decreased around the world, especially in the Asia Pacific region and North America