Autotech Sector M&A Hit Hard by Covid-19, Says Hampleton M&A Report
London, UK – 29 September 2020.The latest Autotech M&A market report from Hampleton Partners, the international technology mergers and acquisitions advisor, reveals that this year the sector has been impacted by Covid-19 lockdown measures, economic recession and a collapse in car sales in Europe and the USA. Autotech registered an 11 per cent dip in deal volume in the first six-months of 2020 vs. the second half of 2019, and recorded only $4 billion in disclosed transaction value, in what is normally a buoyant sector for M&A.
The global rise in e-commerce did provide some good news for dealmakers in logistics, fleet management and digital services.
Miro Parizek, principal partner, Hampleton Partners, said:
“We saw the dramatic impact of the pandemic on automotive deal-making in the first half of 2020, with OEMs and suppliers distracted from M&A while putting out supply chain fires and dealing with reduced demand for new vehicles.
“It remains to be seen what the long-term impact on car usage and buyer habits will be post-Covid, but as the first six months of 2020 closed out we noted a recovery in China and we anticipate that the market overall will improve in 2H2020. After all, with disruption comes new opportunities for consolidation and inorganic growth.”
Increase in e-commerce drives autotech deals
Mobility and Fleet Management saw a slight uptick in deal volumes as logistics companies geared-up their freight and transportation assets to ensure they can cope with the increase in deliveries created by the overall increase in e-commerce during the pandemic. For instance, provider of fleet management systems Omnitracs (backed by Vista Equity Partners) acquired VisTracks, a leading provider of SaaS-based compliance solutions to the transportation and logistics industry.
Volkswagen’s desire to build a global online sales platform so its customers can buy any of its brands as well as manage digital services and on-demand functions for its fully networked vehicles, led it to acquire the remaining 51 per cent of shares it did not already own in Stuttgart startup Diconium. 1,200 Diconium employees are now part of the software unit of VW, but the company will not be rebranded.
Largest disclosed autotech deals Jan-June 2020
The three largest deals of the period were:
- Amazon’s acquisition of self-driving car company Zoox for $1.3bn to create a fleet of self-driving taxis, in competition with Alphabet’s Waymo.
- Nebula Acquisition’s deal with Open Lending, the lending enablement platform for the automotive finance market, for $1.1bn, and
- Intel’s acquisition of Moovit, the Mobility as a Service (MaaS) solutions company, for $900m.
Media enquiries, photography or interview requests, please contact:
Mob: +44 789 666 8155
Note to editors:
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.
Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com) and from S&P CapitalIQ.
Download the full Hampleton Partners’ Autotech M&A Market Report 2H2020: https://www.hampletonpartners.com/reports/autotech-report/.
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.
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/.