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Laxman Pai, Opalesque Asia: Information and communications technology (ICT) is an increasingly vital engine of the Australian private equity & venture capital industry.
To compete more effectively on the global stage, Australian businesses are looking to spend more than AUD 65bn on technology in 2019 to build the country's digital capabilities, says Preqin Insights.
From 2015 to 2018, at 5%, the average growth rate of the Australian ICT industry was nearly double the country's average GDP of 2.59%.
2018 was one of the busiest recent years for private equity fundraising activity in the ICT sector, which has steadily risen in dollar terms since 2015. The total funds reached a record high in aggregate capital raised of $1.2bn in 2018, a 20% uptick from 2017.
Deal activity is also strong across the ICT sector. Most of the major buyout and venture capital deals have been for software companies. In total, 17 private equity-backed buyout deals worth an aggregate $1.4bn were announced or completed in 2018.
The bulk of this amount came from KKR's acquisition of an 80.1% majority stake in business software developer MYOB Australia Pty Ltd., for AUD 1.6bn, in December of that year.
131 venture capital deals recorded in 2018
According to Preqin Insights, ICT is also one of the most significant sectors in the Australian venture capital space. In 2018, 131 venture capital deals were recorded, worth a total of $737mn. This compares with 136 deals for $...................... To view our full article Click here
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