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The number of global M&A transactions in the Supply Chain Management (SCM) Software sector saw a marked drop in 2024, according to a new market report by Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies.

There were 60 deals recorded, the lowest number seen in the sector during a six-month period since before the pandemic. As the report shows, M&A activity surged between 2020 and 2023, reflecting global demand among businesses for SCM solutions which could minimise the disruption to logistics triggered by the pandemic and other geopolitical crises.

While this M&A momentum has slackened in 2024, it likely represents a temporary lull brought about by macroeconomic headwinds and investor caution, rather than the start of a long-lasting downturn in the SCM sector.

Hampleton Partners has advised the shareholders of the REIFF Group, one of the leading German suppliers of technical products and industrysolutions, on the sale to Haberkorn, one of the largest technical distributors in Austria, Germany, Switzerland and Eastern Europe.

Hampleton Partners advised the shareholders of PAQATO, Germany’s leading provider of after-sales e-commerce software, on the transaction with easybill, a German market leader in electronic invoicing and everyday business operations and a portfolio company of technology investor LEA Partners.

Throughout this past year, as with every year, the expert analysts here at Hampleton Partners have monitored M&A developments throughout the tech industry, from Autotech to Digital Commerce, with our findings published in our sector-specific market reports.

Now, as we hurtle towards 2025, it’s an excellent moment to look back at just some of the megatrends discussed in our reports, and at the strategic acquisitions which exemplify their respective sectors. Let’s dive in.

The latest Artificial Intelligence market report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals that fundraising for AI companies is now on the rise after a period of diminished deal volumes.

The report shows that, following an initial boom in fundraising which accompanied the first wave of excitement around AI in 2021 and 2022, the flow of investor capital into the sector slowed, only to pick up again in 1H2024. This trajectory can be seen both on an overall global level and in specific regions.

The recently published Artificial Intelligence market report by Hampleton Partners gets into granular detail on the trends and deals shaping this space, but the general lay of the land is perhaps best summed up in the report’s introduction:

“The recent surge in AI funding is setting the stage for a future where artificial intelligence will enhance virtually every single industry. As investment continues to flow into AI companies, they are positioned to lead groundbreaking innovations and forge a new age of economic growth and technological progress.”

Yet amid the sense of genuine exhilaration surrounding AI – how often do we get to see a proper, bona fide industrial revolution unfold in real time before our eyes? – there has also been no small degree of uncertainty about take-up of the technology, and just how deeply it will be woven into the everyday lives of individuals and businesses.

Earlier this year, Gartner adjusted its estimate of total global IT spending in 2024, with the previous forecast of $5.06 trillion being bumped up to $5.26 trillion – in large part thanks to the motivating factor that’s omnipresent in the tech industry right now: generative AI.

While the current “AI moment” is certainly a major theme of the latest IT & Business Services M&A report from Hampleton Partners, our analysts have also underscored another factor which is propelling both IT spending and M&A deal activity within this space. That factor is cybersecurity, which according to a survey of global by TechTarget/Enterprise Strategy Group published this year is the highest-priority spending target of senior IT decision makers around the world.

Anyone who’s read our latest Digital Commerce M&A Report probably won’t have been surprised to see generative AI highlighted as one of the major developments energising the sector. As the report puts it, “the seismic implications of generative AI on Digital Commerce are becoming apparent”, with more and more companies looking to leverage AI solutions “to improve inventory management, plan campaigns, streamline supply chain processes and engage with customers”.

There’s particular excitement around the latter application, with AI agents increasingly being utilised to manage data relating to their customers and to act as a human-like first point of contact for B2B and B2C purchases and queries. The key word here is “human-like”. Agents are fast evolving to be uncannily naturalistic and genuinely helpful – a far cry from chatbots which deploy a stock number of rigid responses, lack a distinctive tone of voice and are frankly in no danger of ever passing the Turing test.

The recently-published Autotech & Mobility M&A Report 2H2024 by Hampleton Partners shines a spotlight on several megatrends defining the sector right now, including how urban mobility is presenting a “critical challenge for today’s cities”.

As the report puts it, “The climate emergency and rising population densities present a daunting challenge for policy makers and city planners who must develop sustainable solutions for cutting greenhouse gasses while also ensuring communities function in an efficient, comfortable way.”

The latest Enterprise Software M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals that 892 deals took place in 1H2024. This was only fractionally less than what was seen in the previous reporting period and indicates that the Enterprise Software sector has retained momentum.

Miro Parizek, Founder and Senior Partner at Hampleton Partners, said: “The sector maintained momentum, with Enterprise Software tools playing increasingly vital roles in allowing businesses to meeting mission-critical objectives and realize efficiencies.”