Hampleton Partners, the international technology mergers and acquisitions advisors, have unveiled the latest Automotive M&A Market Report that outlines how the world’s automotive manufacturers are competing fiercely with suppliers as well as newer market entrants, such as Waymo and Tesla, to acquire the cutting-edge auto businesses and technologies that are transforming the future of personal mobility and commercial transport.
“The autotech sector is proving an attractive investment for manufacturers who need to transform their business models to become mobility providers and for Silicon Valley startups and tech giants who are attempting to stake an early claim for market share on the roads, in a market poised for a minimum decade of growth before it hits maturity. This race for the best technology and the best teams can only boost autotech valuations even more,” commented Jo Goodson, managing director, Hampleton Partners.
Hampleton estimates that the market is on track to deliver around 100 transactions in 2018, reflecting the fast-moving changes in driver behaviour and their quick acceptance of tech innovations such as parking payment; ridesharing; carpooling and car purchasing apps and portals.
Moreover, the report also revealed that deal values were up by 54% in the first half of 2018 vs. teh same period in 2017, reaching $2.9 billion.
The number of private equity transactions in the autotech sector totalled ten announced deals this year, up from just a handful from the full year in 2017. This increase in investment flowed into early stage companies as well as more established business models.
In an age of cyber hacks and vulnerabilities, with connected cars becoming a reality, companies are looking to acquire or invest in solutions that improve trust and reliability. Any technology that has the potential to improve safety on the roads in an era of autonomous vehicles is a financial target.
“Consumers and commercial fleet managers are embracing new technologies that are being launched to help them manage their mobility in the most cost-efficient way, maximise their safety on the road and reduce their impact on the environment,” concluded Jo.