Digital Commerce M&A Deal Volume Surges to Exceed Pre-Pandemic Figures, Says Hampleton Partners Report

London, UK – 04 October 2023. The latest Digital Commerce M&A report from Hampleton Partners, the international M&A and corporate finance advisory firm for technology companies, reveals that 1,017 transactions were recorded in the first half of 2023. This is considerably higher than deal volumes seen in the years leading to the pandemic, indicating strong market bounceback following the dramatic dip observed in the latter quarters of 2022. 

“Covid launched a wave of growth in Digital Commerce,” said Ralph Hübner, Sector Principal at Hampleton Partners. “For several consecutive quarters in 2020 and 2021, frenzied tech M&A activity went hand in hand with IPO and fundraise activity. Then, in 2022, everything slowed down dramatically. Thus far in 2023, we are seeing an interesting market recovery.”

The recovered momentum of M&A activity has not so far been replicated in other finance segments like IPOs and fundraises. Research by Hampleton Partners shows, for example, that total fundraise figures in Europe within the Digital Commerce space have dropped by around 50% since early 2022.

While this is largely due to a relative lack of lucrative “mega deals”, it also presents a marked contrast with the height of Covid, when soaring M&A activity was in lockstep with soaring IPO and fundraise activity.

This reflects a lingering caution in the market, with Ralph Hübner observing that  “Investors are particularly hesitant to invest because of high interest rates and against a backdrop of negative reports of retail bankruptcies and digital commerce struggles.”

It should be noted however that M&A activity have benefitted from the slow pace of recovery within the IPO and fundraise markets, and the outlook for Digital Commerce companies, especially those involved in online sales, is positive.

There have been 4,650 active acquirers within the Digital Commerce sector throughout the past 30 months. Of these, 10% have made more than one acquisition, with the top three most prolific buyers being:

Tencent – 12 acquisitions, including TequilaWorks (video game developer), 1C Entertainment (producer and developer of video games) and Inflexion Games (video game developer and designer)

Accenture – 11 acquisitions, including Fiftyfive5 (customer insights and advisory services), MacGregor Partners (SCM SaaS and consulting services), and Romp (digital marketing services)

Azerion – 11 acquisitions, including Adplay (digital advertising SaaS and services), Radionomy Group (online radio creation service), HybridTheoryGlobal (digital advertising services)

Download the full Hampleton Partners Digital Commerce M&A Market Report 2H2023, which discusses trends shaping the sector and takes a close look at pivotal deals within five key segments: Internet Services & Portals, Digital Commerce Software, Agencies & Services Providers, Media, Social & Gaming, and Online Retail here: https://www.hampletonpartners.com/de/reports/digital-commerce-report/

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Note to editors:

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.

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About Hampleton Partners

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. 

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