【Hampleton】2023上半年电子商务并购报告

Summary of M&A Market Report 2H2023

Core Content

The M&A market in the Digital Commerce sector has shown signs of recovery in the first half of 2023, following a significant slowdown in 2022. The market is gradually returning to more normal levels of deal-making, although it remains below pre-pandemic activity. The recovery is characterized by increased transaction volumes and rising valuations, particularly in the Digital Commerce Software and Agencies & Service Providers segments.

Main Points

• Digital Commerce M&A Recovery:

  • In 2023, the Digital Commerce M&A market has regained momentum, with 1,017 deals closed in H1 2023, compared to 491 in Q1 and 526 in Q2.
  • This is a significant increase from pre-pandemic levels, indicating a return to more typical deal-making activity.
  • The market is still not fully recovering from the impact of the pandemic, with fundraising and IPO activity remaining subdued.

• Segment Performance:

  • Digital Commerce Software: Transaction volume increased in 1H 2023, with 234 deals, compared to 322 in 1H 2022 and 191 in 1H 2021. EBITDA multiples rose to 14.3x in Q2 2023, exceeding pre-pandemic levels.
  • Agencies & Service Providers: Transaction volumes surged in early 2023, with close to 300 deals in 1H 2023 compared to 196 in 2H 2022. EBITDA multiples increased to 10.3x, up from the low of 7.7x in 2022.
  • Media, Social & Gaming: Transaction volumes dropped significantly in 1H 2023 compared to 1H 2022 and 1H 2021, but remained in line with pre-pandemic levels. EBITDA multiples rose to 12.6x in Q2 2023.
  • Online Retail: Transaction volumes declined sharply, reaching their lowest level since 2015. However, there is a slight increase in Q2 2023, with EBITDA multiples rising to 10.4x in Q2 2023.
  • Internet Services & Portals: Transaction volumes showed renewed vigor in 1H 2023, with 231 deals. EBITDA multiples reached a record high of 15.2x in Q2 2023.

• Notable Deals:

  • TeamSystem Acquires MailUp: A $77 million acquisition in February 2023, enhancing TeamSystem's capabilities in SME marketing and data analytics.
  • Neptune and Quotient Combine: A $901 million take-private deal in June 2023, aiming to create a leading sports betting platform in the CEE region.
  • Entain Acquires 365Scores: A $150 million acquisition in April 2023, expanding Entain's digital promotions and media capabilities.
  • Entain Acquires STS: A $901 million acquisition in June 2023, positioning Entain as the leading sports betting platform in the CEE region.
  • WPP Acquires Obviously: A $36 million acquisition in March 2023, adding a tech-driven social influencer marketing agency to WPP's portfolio.
  • WPP Acquires Stake in Majority: A $30% stake in a US-based creative agency, enhancing WPP's capabilities in disruptive creativity.
  • PetMed Express Acquires PetCareRx: An all-cash $36 million acquisition in January 2023, expanding the company's offerings in pet health and wellness.

Key Information

• Deal Volume Trends:

  • Digital Commerce M&A deal volume in 1H 2023 was 1,017, showing a marked increase from 2022 but still below pre-pandemic levels.
  • The Agencies & Service Providers segment saw a significant increase in deal volume, while Online Retail and Media, Social & Gaming segments were slower to recover.

• Valuation Trends:

  • EBITDA multiples in the Digital Commerce Software segment rose to 14.3x in Q2 2023, surpassing pre-pandemic levels.
  • The Internet Services & Portals segment saw EBITDA multiples reach a record high of 15.2x in Q2 2023.

• Market Sentiment:

  • Despite the recovery in M&A activity, market sentiment remains cautious due to high interest rates and economic uncertainty.
  • Investors are more selective, focusing on mature and healthy companies with proven success.

• Data Sources:

  • The report is based on data from 451 Research, S&P CapitalQ, and Hampton Research.

• Conclusion:

  • The Digital Commerce M&A market is showing signs of recovery in 2023, with increased deal activity and valuations.
  • While the market is not yet fully rebounded, the outlook for online sales remains positive, and the M&A market continues to reflect this growth.