London, UK – 31 August 2022. Newest Hampleton Partners’ Automotive Technology and Mobility M&A Market ReportAn international M&A and corporate finance advisory firm for technology companies revealed that 64 deals were recorded in the first half of 2022, with the sector’s deal volume now at an all-time high.
“Automotive megatrends are converging to ultimately transform the global automotive industry, and traditional industry players that fail to keep up with these tectonic shifts will inevitably be left behind,” said Michel Annink, Director, Hampleton Partners.
Hampleton Partners Autotech & Mobility Report
“In addition to the shift to electric drives and vehicles becoming increasingly software-centric, automotive business models are changing, spurring global M&A activity in the retail and aftermarket sectors, and further targeting what is poised to be the next major disruptor Make a big investment: autonomous driving.”
As for valuations in the auto tech and mobility sectors, the median revenue multiple over the past 30 months is currently at 3.2 times, the highest level since 2018. However, the median EBITDA multiple for the past 30 months has declined by 34% from 11.8x in 2H21 to 7.8x in 1H22.
Commenting on the drop in EBITDA multiples, Annick commented: “This is the lowest level since 2015 and reflects the margin pressure and rising cost of capital that the industry is currently experiencing.”
Of the 147 active acquirers in the sector over the past 30 months, 26 have made more than one acquisition. Image Network 2000 SL FordonsData Nordic AB was the largest acquirer with five acquisitions in 30 months; Custeed SAS and Stieger Software AG were the latest.
Megatrends driving change in the automotive industry
“The future is on-demand and wireless as manufacturers experiment with subscription business models and build truly connected cars whose software is updated over-the-air without time-consuming trips to the garage.
“As for the car buying and after-sales experience, car dealerships and spare parts channels are challenged to stay relevant as digitization sweeps across the industry.”
The Future of M&A in Automotive Technology and Mobility
Michel Annink continues: “With the help of government regulation and stimulus, it is becoming increasingly clear that the ‘ICE era’ is truly over as the industry is rapidly moving away from internal combustion engines to battery electric vehicles.
“Global EV sales continue to grow exponentially after reaching an inflection point in 2021, and EV charging infrastructure is not far behind, with a reported $4.8 billion in launch announcements, investments, debt financings and acquisitions already this year.
“The impact of societal forces on sustainability, electric vehicles, and customer experience, combined with the acceleration of technological innovation in the automotive industry, bodes well for a buoyant M&A environment.”
Hampleton’s Automotive Technology and Mobility M&A report analyzes deals, trends, and activity in the industry’s enterprise applications, Internet commerce and content, embedded software and systems, and mobility and fleet management segments, as well as key trends in electric vehicles and charging.
Download the full Hampleton Partners Automotive Technology and Mobility M&A Market Report 2H2022:
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Hampleton Partners’ M&A Market Report is compiled using data and information from the 451 Research database (www.451research.com) and part of S&P Global Capital IQ, a product of S&P Global; Tech Crisis; CB Insights and others.
About Hampleton Partners
Hampleton Partners is at the forefront of advising technology-focused companies on international mergers and acquisitions and corporate finance. Hampleton’s experienced dealmakers have built, bought and sold more than 100 fast-growing technology businesses and provide practical expertise and unparalleled advice to technology entrepreneurs and companies seeking to accelerate growth and maximize value.
With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective and industry expertise: artificial intelligence, automotive tech, cybersecurity, digital commerce, enterprise software, fintech, healthtech, HRtech, insurtech and IT and business services.
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