Hampleton Partners highlights increased private equity activity against a cyclical downward trend in deal volumes and value
Download the full report here: https://hampletonpartners.com/hampleton-tech-outlook-2020-report
This is resulting in rising strategic deal valuations for disruptive, young and scalable tech companies, with increasing activity from private equity and their portfolio companies compared to strategic investors. This, despite an overall cyclical downward trend in transaction volume and total disclosed value from 4.043 and $506 billion in 2016 to 3.441 and $325 billion in 2017.
Private equity firms – with more cash at their disposal than ever before – and their portfolio companies, completed a total of 882 deals, more than a quarter (26 per cent) of all tech 2017 M&A deal transactions. And such firms are becoming increasingly present in mega deals, such as the acquisition of Scandinavia’s largest payments processor, Nets A/S, for $5.3 billion by consortium led by U.S. buyout firm Hellman & Friedman LLC at a 30 per cent share premium and 24x earnings.
Miro Parizek, founder and principal partner, Hampleton Partners, said: “Despite the slowdown in the second half of last year, the overall outlook in the foreseeable future is very positive as continued technological disruption forces established vendors and new market entrants to innovate and stay competitive via tech M&A.”
“We are in the midst of a longer lasting up cycle and expect a rebound in deal volumes this year. The technological and resulting behavioural and social change is forcing established companies in industries such as financial services, automotive, healthcare and high-tech industrials to acquire and integrate companies at the leading-edge of artificial intelligence, blockchain, cybersecurity and many other technologies to ensure they can stay relevant and launch new products and services into the marketplace quickly. The alternative, is simply to be left behind.”
Download Hampleton Partners’ Tech M&A Outlook 2020 Market Report for the outlook on eight sectors: automotive technology; digital marketing; e-commerce; enterprise software; fintech; healthtech; high-tech industrials and Industry 4.0 and IT services.
Note to Editors:
Hampleton Partners’ Tech M&A 2020 Outlook Report is compiled using data and information from the 451 Research database (www.451research.com).
About Hampleton Partners
Hampleton Partners is at the forefront of international mergers and acquisitions advisory for companies with technology at their core. Hampleton’s experienced deal makers have built, bought and sold over 100 fast-growing tech businesses and now provide hands-on expertise and unrivalled international advice to tech entrepreneurs and the companies who are looking to accelerate growth and maximise value.
With offices in London, Frankfurt and San Francisco, Hampleton offers a global perspective with sector expertise in: Automotive Technology, IoT, AI, FinTech, Hi-Tech Industrials & Industry 4.0, Cybersecurity, VR/AR, HealthTech, Digital Marketing, Enterprise Software, SaaS & Cloud, E-commerce. Download sector reports here: https://hampletonpartners.com/research/.
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