Hampton Partners | New report from Hampleton Partners shows SPAC auto tech deals to exceed $80 billion in H1 2021

Auto industry bounces back as EVs regain momentum

London, UK – September 21, 2021. This Hampleton Partners’ Latest Automotive Technology M&A Market ReportIn the first six months of 2021, 12 deals using special purpose acquisition companies (SPACs) to prepare for public offerings achieved a deal value of $80.5 billion, according to an international technology M&A advisor. Hampleton’s research also showed a record median EV/S multiple of 23.9 times during this period.

Autotech Deals Number and Valuation Multiples – 2014-2021

Most of the SPAC deals are for companies in the mobility and fleet management space, with the largest deal in April for Singapore-based catchrides to financial firms, and SPACs altimeter growth, worth $39.6 billion. Its Nasdaq listing is now scheduled for later this year.

Miro Parizek, principal partner at Hampleton Partners, said:
“As we predicted, the industry continues to do deals with a clear focus on mobility and electrification. Supporting this trend, we see an explosion of SPAC-led activity in the related automotive technology subsectors as we start 2021. This year Nearly $100 billion in auto tech SPAC deals in the first six months. The valuation multiples are extraordinary.”

Automotive Technology M&A Market
Excluding SPACs, the automotive technology sector saw an increase in M&A deals completed in the first half of 2021, with 44 deals signed compared to 39 in the first half of 2020.

Revenue and EBITDA multiples also recovered after declining in 2020 and returned to previous levels: the median revenue multiple over the past 30 months was 2.1 times, while the corresponding EBITDA multiple recovered to 14.9 times.

Electric Vehicles (EVs) Regaining Momentum
Electric vehicle production and adoption regains momentum, with data showing that the European EV market is growing faster than the US, with sales of plug-in electric vehicles in Europe up 137% to 1.4 million in 2020, while US sales rose 4% to 328,000 [1].

Total electric vehicle sales in China soared in the first half of 2021, with 1.2 million deliveries, on par with the total for all of 2019. This is being driven, among other factors, by the Chinese government’s clear EV goals. 20% of new sales by 2025.

After hovering around 5% of total car sales for years, the segment now typically accounts for 10% of total monthly deliveries.

In July 2021, Daimler announced that it will invest more than 40 billion euros in electric vehicle technology by 2030. The company said it plans to build eight electric vehicle battery factories and that all new vehicle architectures from 2025 will be fully electric.

“Overall, M&A activity, even excluding SPACs, remains healthy, with valuations rising across the board. Buyers are particularly focused on mobility and electrification-related subsectors,” said Miro Parizek.

“Deal levels in the automotive sector for internet commerce and embedded software remained steady, while enterprise application-related M&A volumes slowed. For the rest of the year, we expect continued strong valuations in the sector.”

Hampleton’s Automotive Technology M&A report analyzes deals, trends and activity in the enterprise applications, Internet commerce and content, embedded software and systems, and mobility and fleet management segments of the industry.

Download the full Hampleton Partners Automotive Technology M&A Market Report 2H2021:

[1] Source: ev-volumes.com


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Notes to editors:
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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https://www.hampletonpartners.com .


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