Hampleton Partners’ M&A report states the race is on for the vehicle of the future
The latest Autotech M&A market report from Hampleton Partners, an international technology mergers and acquisitions advisor, reveals that there is still everything to play for in the race toward the vehicle of the future, as some acquirers bet on the short-term opportunity of electric vehicle (EV) technology, while others favor the more ambitious, long-term developments in autonomous vehicle (AV) tech.
More than 15% 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, the advisor company expects to see more short-term investment and M&A activity in the EV space in 2020.
“EV will benefit from the more immediate push in tech spending,” said David Riemenschneider, Director, Hampleton Partners. “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.”
The report lists the largest disclosed deals of second half 2019 as:
- Hellman & Friedman acquires AutoScout24 GmbH - $3.2 billion
- Uber Technologies acquires Careem - $3.1 billion
- Bridgestone acquires TomTom (telematics business) - $1.0 billion
The 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. The report was compiled using data and information from the 451 Research database, Crunchbase, and CapitalIQ, a product of S&P Global.
“While we have seen the R&D funds of OEMs and Tier 1s shift away from autonomous vehicle tech and toward 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,” said Riemenschneider. “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.”
For more information, visit www.hampletonpartners.com.