The latest Automotive Technology M&A Market Report from international technology mergers and acquisitions adviser, Hampleton Partners, reveals that disclosed venture capital funding to automotive startups totalled $8bn in 2018.
In parallel, almost 100 M&A deals were inked, including Renault, Ford and Volkswagen’s autotech acquisitions in the second half of 2018. However, total disclosed M&A transaction value reached $3.9bn in the time period, the lowest in more than five years.
The report also shows the growing role of private equity (PE) in the autotech M&A market, accounting for almost one quarter of all transactions in 2018. The largest PE acquisition was Gores Group’s buyout of Verra Mobility for $1.3bn, at an attractive 17x EV/EBITDA multiple.
Jo Goodson, managing director, Hampleton Partners, said: “Although we are currently seeing more venture capital investment than M&A transaction value in autotech, all players in the sector continue to push to be the market leader within the new world of electrification, connectivity, autonomy and mobility....