Deal Numbers in Autotech & Mobility Sector Remain Robust As More Nations Pass EV Sales Tipping Point

The latest global Autotech & Mobility M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies, reveals that 63 deals were recorded in the sector during the second half of 2023.

While this is a dip compared to the previous six-month period, which saw the second-highest number of Autotech & Mobility transactions on record, it is significantly higher than what was seen in the doldrums of 2H2022, and reflects widespread sentiment among sector experts that the recent loss of EV sales momentum may only represent a temporary lull before a new phase of growth.

Michel Annink, Managing Director and Head of Autotech at Hampleton Partners, said “There has been a lot of noise in the media around recent slowdown in EV sales. However, astute industry commentators have emphasised that we’re simply reaching that point in the trajectory of tech take-up when initial growth, fuelled by early adopters, slowly gives way to the arrival of early majority and late majority adopters.”

The global M&A report highlights key trends that may herald growth opportunities for Autotech & Mobility companies. Among them is the adoption of Tesla’s North American Charging Standard by all major automakers, thereby simplifying EV charging and potentially encouraging more drivers to make the switch to electric.

The report also highlights the fact that 31 nations have now seen EVs make up at least 5% of new car sales. This is up from 19 in 2022, and is a significant development since the 5% threshold has been shown to mark the tipping point for mass EV adoption.

Another trend underpinning M&A activity is the growth in demand for over-the-air (OTA) technology, which allows EVs to update their systems online, and allows car makers and tech companies alike to unlock multiple revenue streams.

The global OTA market is expected to reach $14 billion by the end of this decade, but as the M&A report discusses, legacy OEMs are still finding the transition to  software-driven automotive design to be challenging. Inherent skills gaps and cumbersome supply chain issues have meant that legacy firms have hit speed bumps on the road to OTA integration, compared to players like Tesla and Rivian.

There have been 318 active acquirers within the Autotech & Mobility sector throughout the past 30 months. Of these, 30 have made more than one acquisition, with the three most prolific buyers being:

• Modaxo – 7 acquisitions, including Conduent Business Services (parking management software), Fara AS (ticketing and fleet management SaaS), and SS Telemtica e Servios Ltda (fleet management SaaS).
• Motork – 4 acquisitions, including GestionaleAuto.com srl (automotive retail sales management SaaS), Dapda Motor Digital (Spanish marketing SaaS), and Fidcar SAS (predictive marketing SaaS).
• Valsoft – 4 acquisitions, including BDK Informatik AG (transport and logistics management SaaS), Freicon Software GmbH (automotive dealer management SaaS), and Enrich Software Corporation (truck leasing ERP SaaS).

Download the full Hampleton Partners Autotech & Mobility M&A Market Report 1H2024, which reveals the megatrends shaping the sector right now, focusing on five key segments: Enterprise Applications, Internet Commerce & Content, Embedded Software & Systems, Mobility & Fleet Management, and EV Infrastructure at https://www.hampletonpartners.com/reports/autotech-mobility-report/.

Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com); Capital IQ, CB Insights, Gartner, IDC and more.

Hampleton Partners advises technology company owners on M&A and growth financing transactions with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders and provide hands-on expertise and unrivalled advice to entrepreneurs looking to sell their companies, partially exit, or to accelerate growth.

With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective with sector expertise in: Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech, Cybersecurity, Fintech, Healthtech, HR Tech, and Insurtech.

Follow Hampleton on LinkedIn.