2023-03-23-Hampleton-2023年第一季度电子商务市场并购报告_12页_1mb

Digital Commerce M&A Market Report 1H2023 Summary

Core Content

The Digital Commerce M&A market has undergone significant changes since the pandemic-induced surge in 2020 and 2021. While 2022 saw a decline in transaction volume, the market is now stabilizing and adapting to a "new normal" with more selective deal-making and a focus on mature, healthy companies.

Key Trends

• Market Normalisation:

  • The M&A market in Digital Commerce experienced a sharp decline in deal activity in 2022, especially in the second quarter, due to political and economic uncertainties.
  • Despite this, the market has shown signs of stabilisation, with deal volumes returning to a level higher than pre-pandemic levels.
  • In the second half of 2022, the number of active acquirers decreased from 14% to 7%, indicating a more cautious approach among investors.

• Subsector Performance:

  • The Media, Social & Gaming sector has seen a significant increase in deal activity, with a large majority of acquirers investing in gaming companies.
  • Internet Services & Portals experienced a steep decline in deal volume, especially in Q4 2022, with a 37% drop compared to the previous year.
  • Agencies & Service Providers showed a steady increase in deal volume, with an 8% year-over-year rise to 312 deals.
  • Digital Commerce Software saw a record-high deal volume in Q1 2022, which later normalized with a 25% increase from 2021 to 2022.

• Valuation Trends:

  • EBITDA multiples in the Digital Commerce M&A market increased slightly, reaching 12.5x in the final quarter of 2022, despite a decline in the number of deals.
  • The Internet Services & Portals sector saw an uptick in EBITDA multiples from 11.9x in Q4 2021 to 15.5x in Q4 2022.

Major Acquisitions

• EMBRACER+GROUP:

  • Acquired 19 companies, including Crystal Dynamics Inc., Square Enix Holdings Co. Ltd., and Aspyr Media Inc.

• Tencent:

  • Acquired 15 companies, such as Shift Up Corporation, Inflexion Studios Inc., and 1C Entertainment S.A.

• animocaBRANDS:

  • Acquired 11 companies, including TinyTap Limited, WePlay Media Holdings LLC, and BDVLOU.

• Accenture:

  • Acquired 10 companies, including MacGregor Partners, LLC, Openmind Srl, and LEXTAGmbH.

• Klarna:

  • Acquired 8 companies, such as flexEngage Inc., In Spirock Inc., and PriceRunner International AB.

• cart.com:

  • Acquired 8 companies, including WordWatch Inc., SellerActive Inc., and 180Commerce LLC.

• Microsoft:

  • Acquired 7 companies, including TakeLessons Inc., Suplari Inc., and Tantalus Media Pty Limited.

• Sony Interactive Entertainment:

  • Acquired 7 companies, including Valkyrie Entertainment, Nixxes Software B.V., and Tiger Media International GmbH.

Notable Deals

• Shift4 Payments LLC acquired Credorax Bank Ltd. (Finaro) for $575 million to expand its payment services.
• EQT acquired Billtrust for $1.6 billion in a go-private transaction, focusing on cloud-based payment solutions.
• AutoNation Inc acquired RepairSmith Inc for $190 million to enhance its automotive services.
• AutoNation Inc also acquired a 6% stake in TrueCar Inc to collaborate in digital car buying experiences.
• Prism Data LLC acquired Digital Media Solutions Inc for $298 million, focusing on performance marketing.
• Frasers Group plc acquired three companies in the fashion and home furnishing space, including Amara Living Ltd and MySale Group plc.
• Nordic Capital acquired Los Group Holding for $345 million in revenue, offering products under multiple brand names.

Outlook

• The market is expected to become more segmented over the next two to three years, with regional differences in deal value and multiples.
• Despite the challenges of 2022, the market remains strong for mature and healthy companies, with continued investment in innovative technologies.
• The presence of substantial dry powder among investors suggests that the market will remain active, albeit with more selective and risk-averse deal-making.

About Hampton Partners

Hampton Partners is a leading M&A advisory firm specialising in technology-driven businesses, with a focus on Digital Commerce. They offer global expertise in sectors such as Automotive Tech, IoT, AI, Fintech, and more.

Further Information

• Hampton Partners produces regular M&A reports on various sectors, including Digital Commerce.
• You can subscribe to these reports at http://www.hampletonpartners.com/reports/.
• The report is based on data from 451 Research Database, S&P CapitalQ, and Hampton Research.

Disclaimer

This report contains general information only and is not intended to serve as professional advice. Readers are advised to consult a qualified professional adviser before making any decisions based on this content.