Spending during 2H 2016 up 97% year-over-year despite 17% drop in number of deals
The E-Commerce M&A report, which covers mergers and acquisitions in the period between July 2014 and December 2016, shows a string of mega deals boosted by improving levels of profitability contributed to higher spending.
The trailing 30-day median revenue dropped slightly to 2.7x in 2H 2016 from 2.8x the previous half year, while the trailing EBITDA multiple shot up to 11.6x from 10.6x during the corresponding period in 2015.
Out of 1,693 transactions in the trailing 30-month period, deals in Internet and Information Services segment accounted for 54 percent of all transactions. Food delivery investors Just Eat and Foodpanda accounted for the sector’s top two acquirers in the last 30 months, with a total of 10 deals each, followed by motor racing news specialist, Motorsport.com, with 9 deals announced in the same period. Other top buyers in the sector include Sprinklr, TripAdvisor, Quickr and Time Inc.
Food delivery a bright spot for the industry
Despite lower deal volume in 2H 2016, M&A is on the rise in fast-growing markets such as the online food delivery space, where market leaders buying out rivals continues to fan the flames of consolidation. Driven in part by a string of divestments by serial investor, Rocket Internet, online food delivery companies have accelerated their hunt for smaller rivals in a bid to secure dominance in home markets.
Jo Goodson, Managing Director, Hampleton Partners: “Driven by growing profit, high levels of interest in the e-commerce segment will continue to fuel investment in adjacent areas including marketing technology and customer analytics. This also has huge implications for automation, as the industry shifts toward new solutions, including drones and robotics, to deliver consumer goods.”
About the research
The 8th bi-annual “Hampleton Partners E-Commerce M&A Research Report, 2H 2016” covers the period from July 2014 – December 2016, using data from 451 research. Hampleton’s research reports cover the following industries: Automotive Technology, Digital Marketing, E-Commerce, Enterprise Software, Internet of Things, IT Services and Outsourcing, SaaS and Cloud Services and Fintech.
Download our full reports here: www.Hampletonpartners.com/research
About Hampleton Partners
We are a London-based M&A advisory firm, serving the owners and shareholders of technology companies. With offices in the US and Europe, and associates in Asia, Hampleton combines international reach with local resources to provide the very best in M&A and corporate finance services. The Hampleton team boasts an invaluable combination of deal making expertise, operational experience, deep industry knowledge and an extensive network of contacts.