The Australian tech sector is attracting attention from US investors and driving a 33% increase in M&A deals across the last quarter (April, May, June), the latest Indicators report by global business readiness platform Ansarada reveals.
Key data findings:
Aussie tech punches above its weight on the global stage
There was an uplift in tech deals commencing this quarter, with 33% more new M&A deals in tech compared to the previous quarter. The US is a major contributor to this boost in activity, with US-based investors paying close attention to accelerated growth in the Australian tech sector and leading SaaS players like Atlassian and WiseTech.
The last quarter saw a host of Australian tech startups secure funding from US investors, including LawPath’s $1.8 million funding from US legal services giant LegalZoom, SeatFrog’s $8 million funding round from Octopus Ventures, Zoox’s $677 million Series B funding round led by Atlassian’s Mike Cannon-Brookes, and Lumitron’s $33 million raise from global investors.
Continued optimism in commercial real estate
The Australian real estate sector had its strongest quarter in the past 12 months, with 25% more new deals than the previous quarter. While last quarter saw offshore investment drive a boom in commercial real estate deals, this quarter the tune is changing with increased activity from local investors, and less from the wider Asia-Pacific region.
Investment from Singapore-based investors halved this quarter, but the nation remains a key player in Australia’s real estate market, representing 50% of total offshore interest.
Singapore’s strong interest in Australian real estate, mainly alternative sectors such as data centres and student accommodation, is offsetting a loss in Chinese capital. Interest from China only rose slightly this quarter, representing 4% of all offshore interest — around half that experienced throughout 2017.