- Two of the three largest transactions in Autotech throughout 2H2020 had been led by particular objective acquisition firms (SPACs)
- 50 Autotech offers signed in 2H2020 – the very best quantity in three years
- Car gross sales in Europe recovering faster than anticipated after large impression of Covid disaster
London, UK – 16 March 2021. The newest Autotech M&A market report from Hampleton Partners, the worldwide know-how mergers and acquisitions advisor, reveals how two of the three largest Autotech transactions throughout the second half of 2020 had been led by “special purpose acquisition companies” (SPACs).
The largest acquisition in Autotech was by Gores Metropoulos’ acquisition of Luminar Technologies for $3.4bn in August 2020, after which it listed the corporate on the Nasdaq. Luminar Technologies supplies superior long-range, excessive decision lidar and notion programs to allow protected autonomous transportation.
Miro Parizek, founder and principal companion, Hampleton Partners
The third largest acquisition was by SPAC Thunder Bridge, which acquired “system-on-chip” producer Ay Dee Kay, now often known as Indie Semiconductor for $1.5bn. Indie Semiconductor’s built-in semiconductor and software program options underpin new automotive functions.
Overall, the Autotech sector noticed a rise within the variety of M&A transactions within the second half of 2020, with 50 offers inked, a 25 per cent improve in comparison with the 40 offers recorded in 1H2020 and the very best stage since 2H2017.
Impact of Covid-19 on Automotive
Covid-19 hit the automotive provide chain and varied strategic gamers exhausting within the first half of 2020. As the coronavirus disaster unfolded, the automobile trade noticed its provide chain constrained, with restricted entry to elements and uncooked supplies sourced from China. At the identical time, the market noticed a drastic discount in demand, with gross sales tumbling within the face of unemployment and monetary uncertainty.
The EU suffered a 24 per cent drop in new passenger automobile registrations in 2020. France, Italy and Spain, all closely affected by the Covid-19 pandemic, suffered above-average gross sales declines of 26 p.c, 28 per cent and 32 per cent in 2020, respectively.
Germany, the EU’s largest vehicle market that had deal with on the pandemic for lengthy stretches of 2020, noticed registrations drop by “only” 19 per cent.
Autotech M&A market experiences upsurge 2H2020
The second half of 2020 appeared very completely different for the automotive sector, with automobile gross sales in Europe exceeding the pessimistic predictions from early 2020.
Miro Parizek, principal companion, Hampleton Partners, mentioned:
“Ultimately, the vaccine rollout that started on the finish of 2020 has offered some hope for the automotive market after pandemic-related restrictions and a drop in productiveness. This newfound optimism, supported by steady shopper spending and purchases financed with low cost debt, translated into market confidence.
“What onlookers had predicted could be a monumental decline turned out to be extra of a short-term hit. Car gross sales in China bounced again at phenomenal velocity, and automobile gross sales in Europe returned to extra regular ranges within the second half of 2020, with a flurry of exercise over the summer time of 2020.
“We imagine this optimistic pattern is prone to proceed, forcing the auto trade to shift focus again to developments in analysis, growth and know-how which is able to all drive M&A exercise.”
Hampleton’s Autotech M&A report analyses transactions, traits and exercise throughout the Enterprise Applications, Internet Commerce & Content, Embedded Software & Systems, and Mobility & Fleet Management segments of the sector.
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Note to Editors:
Hampleton Partners’ M&A Market Reports are compiled utilizing information and data from the 451 Research database (www.451analysis.com), a product of S&P Global Capital IQ, a product of S&P Global; CB Insights and extra.
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About Hampleton Partners
Hampleton Partners is on the forefront of worldwide mergers and acquisitions and company finance advisory for firms with know-how at their core. Hampleton’s skilled deal makers have constructed, purchased and offered over 100 fast-growing tech companies and supply hands-on experience and unrivalled recommendation to tech entrepreneurs and corporations which wish to speed up progress and maximise worth.
With places of work in London, Frankfurt, Stockholm and San Francisco, Hampleton presents a worldwide perspective with sector experience in: Artificial Intelligence, Autotech, Cybersecurity, Digital Commerce, Enterprise Software, Fintech, Healthtech, HR Tech, Insurtech and IT & Business Services.
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