The Digital Commerce M&A sector is set to remain white-hot in 2022, coming off a record year for transaction volumes and $400bn in deal value, says Hampleton Partners’ latest report.
Digital Commerce M&A market will remain white-hot in 2022, says Hampleton Partners’ report
- In 2021 Digital Commerce M&A market deal volumes grew 34 percent year on year
- $400 billion in disclosed transaction value for 2021
- Investors and acquirers favoring e-commerce software; media, social and gaming; food delivery; and the ‘circular economy’
Hampleton Partners’ Digital Commerce M&A report reveals that sector M&A growth is at an all-time high. The sector signed over 2,317 deals in 2021, a 34 percent increase on the 1,725 deals closed in 2020, and a 65 percent increase on 2019 figures.
Hampleton’s report also highlights $400 billion in disclosed transaction value across the sector in 2021, including $140 billion in the second half of 2021 – 21 percent of which can be attributed to the take-private of buy-now-pay-later (BNPL) solutions provider Afterpay by payments company Square for around $30 billion.
The trailing 30-month median digital commerce deal amount reached a high of $27 million, a jump from the $22 million figure seen in 2020.
Ralph Hübner, sector principal, said: “We predict a white-hot first half of 2022 in digital commerce M&A, as many transactions have been in preparation since last year.
“M&A and fundraising activity across all segments of the digital commerce space continues to be propelled by the great shift online, with increased appetite from financial sponsors, be it from the VC or the PE/growth space. Investors are eager to back digital commerce software and infrastructure and help fund the mammoth business of e-commerce brands.”
Hampleton Partners’ Digital Commerce M&A Market report highlights how the boundaries between sector segments are continuing to blur and analyses market trends, success stories, fundraising and M&A deals to provide a realistic portrayal of Digital Commerce M&A in a post-Covid world, with a focus on the second half of 2021. It covers the intersection of internet services & portals; online retail; media, social & gaming; agencies & service providers, and digital commerce software; plus e-food and the circular economy.
