Autotech: Electric vs. Autonomous Vehicle Race Shapes Acquirers into Short- and Long-Term Players
London, UK – 18 February 2020.The latest Autotech M&A market report from Hampleton Partners, the international technology mergers and acquisitions advisor, reveals that there is still everything to play for in the race towards the vehicle of the future, as some acquirers bet on the short-term opportunity of electric vehicle (EV) technology, while others favour the more ambitious, long-term developments in autonomous vehicle (AV) tech.
Over 15 per cent of all automotive deals tracked in 2019 related to connected car/AV technology. The area saw huge funding commitments, such as Uber Advanced Technologies Group’s $1 billion raised from Toyota and Denso; GM Cruise’s $1.15 billion raise from Softbank; and Aurora’s $350 million fundraise in a round led by Sequoia and Amazon.
However, Hampleton Partners expects to see more short-term investment and M&A activity in the electric vehicle (EV) space in 2020.
David Riemenschneider, director, Hampleton Partners, said:
“EV will benefit from the more immediate push in tech spending. Why? Because faster charging technology, and more widely available charging stations and infrastructure, are needed to meet OEMs’ sales volume expectations for the EVs they are producing.
“Those buying into AV tech are playing a longer game, looking to set standards that will surely need to be adopted in the run-up to scale this technology. We will therefore continue to see activity in the AV sector, but we predict EV tech and associated infrastructure will see the most substantial growth over the more immediate time frame.”
Largest disclosed deals of 2H2019
- Hellman & Friedman acquires AutoScout24 GmbH - $3.2 billion
- Uber Technologies acquires Careem - $3.1 billion
- Bridgestone acquires TomTom (telematics business) - $1.0 billion
Hampleton’s Autotech M&A report analyses transactions, trends and activity across the Enterprise Applications, Internet Commerce & Content, Embedded Software & Systems, and Mobility & Fleet Management segments of the sector.
Automotive technology M&A 2020
David Riemenschneider continued:
“While we have seen the R&D funds of OEMs and Tier-1s shift away from autonomous vehicle tech and towards technology considered more market-ready, such as ADAS* features and the deployment of electric vehicles, overall M&A and fundraising activity remains robust across the board in all autotech sectors.
“Connectivity solutions, advanced ADAS, in-cabin entertainment platforms and advances in engine electronics allowing smaller ICE engines to produce more power – these are all areas that will see M&A and fundraising activity through the remainder of 2020 and into 2021.”
* Advanced driver-assistance systems.
About Hampleton Partners
Hampleton Partners is at the forefront of international mergers and acquisitions and corporate finance advisory for companies with technology at their core. Hampleton’s experienced deal makers have built, bought and sold over 100 fast-growing tech businesses and provide hands-on expertise and unrivalled advice to tech entrepreneurs and companies which are looking to accelerate growth and maximise value.
With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective with sector expertise in: Artificial Intelligence, Autotech, Cybersecurity, Digital Commerce, Enterprise Software, Fintech, Healthtech, HR Tech, Insurtech and IT & Business Services.
For more information visit https://www.hampletonpartners.com.
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Note to editors
Hampleton Partners’ Automotive Technology M&A Market Report 1H 2020 is compiled using data and information from the 451 Research database (www.451research.com); CapitalIQ, a product of S&P Global Intelligence; and Crunchbase.
Download the full Hampleton Partners Autotech M&A Market Report: https://www.hampletonpartners.com/reports/autotech-report/
Contact Hampleton Partners for a confidential conversation regarding any of your merger and acquisition or corporate finance needs with one of our Directors or Sector Principals: https://www.hampletonpartners.com/contact/.