Venture capital funding to automotive start-ups totalled USD8 billion in 2018, according to the latest Automotive Technology M&A Market Report from international technology mergers and acquisitions adviser, Hampleton Partners.
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 USD3.9 billion in the time period, the lowest in over 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 USD1.3 billion, at an attractive 17x EV/EBITDA multiple.
Jo Goodson, managing director, Hampleton Partners, says: “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. Start-ups with innovative ideas are pursuing funding, and global giants from all sectors, including financial, are continuing to invest, fund and acquire.”
