AdTech and MarTech M&A remained stable in the first half of this year, with an increase in MarTech transactions and a modest decrease in AdTech. The overall volume of deals completed is up by 9.5% on the same period in 2015, rising from 199 deals in H1 2015 to 218 in the first half of this year. The disclosed value of those deals, is also up, rising to $11.5bn in H1 2016 from $9.2bn in H1 2015.
The number of AdTech deals completed is down slightly year-on-year, a 10.4% decrease from 67 transactions in H1 2015 to 60 in H1 this year. The total value of those deals fell from $7.6bn in H1 last year to $3.7bn in H1 2016. The H1 2015 figures were skewed by Verizon’s $4.4bn acquisition of AOL in June 2015.
By comparison, the number of MarTech deals rose from 132 in H1 2015 to 158 in H1 this year – an increase of almost 20%. MarTech deal value rose from $1.5bn in H1 last year to $7.8bn in H1 2016. However, this year’s figures are skewed by a number of acquisitions in excess of $1bn: Demandware by Salesforce ($2.8bn), Marketo ($1.6bn) and Cvent ($1.7bn) by Vista Equity Partners, and Sitecore by EQT ($1.1bn).
Julie Langley, partner at Results International, said: “The first half figures show the continued rise of investor and acquirer interest in MarTech; we’ve seen a significant amount of activity in the space by both the large enterprise software vendors and by private equity. Multiples have been very healthy and the market is strong.”
“AdTech has had a more difficult time, as has been widely reported, however the actual deal volumes are only down by 10% on the same period last year. Demand continues to be driven by new entrants into the sector – we’ve seen a number of players make their first acquisitions into the space – and the rapid pace of innovation.”