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Hampleton Partners Sees Strong Tech M&A Activity in 2H 2017 Market


Research by Hampleton Partners analyses key trends in 11 technology sectors including artificial
intelligence, augmented reality/virtual reality and cybersecurity.

London, United Kingdom, August 23, 2017 --( Hampleton Partners, an international mergers
and acquisitions (M&A) and corporate advisory firm for technology companies, today issued 11
technology M&A market reports for 2H 2017 in the key business segments of artificial intelligence (AI),
augmented reality/virtual reality (AR/VR), automotive technology, cybersecurity, digital marketing,
e-commerce, enterprise software, financial technology, internet of things (IoT), IT services, and SaaS &
cloud services.

Overall, our research shows that technology M&A cooled down in the first half of 2017, says Miro
Parizek, Principal Partner of Hampleton Partners. However, it is critical to be more nuanced and to look
deeper into specific sectors and the related data when assessing deal activity and planning strategy.

Parizek adds, M&A and funding is accelerating in select sectors, as more 'non-technology' or traditional
companies and private equity firms move to acquire and invest in technology and innovation. Artificial
intelligence, augmented reality/virtual reality, and cybersecurity are three of the most promising sectors
for technology M&A right now.

Key findings in the technology M&A market reports for 2H 2017 include the following:

- Artificial Intelligence: Acquisitions of AI related targets speeds up dramatically as deal volume

increases 179% versus the previous year. Total M&A relating to artificial intelligence now exceeds 100
transactions in the last 24 months to June 2017, in concert with the growing media attention dedicated to
the sector.

- AR/VR: Investment in augmented reality and virtual reality has shot up in recent years, with a majority
of related M&A activity occurring in the US. In the last 12 months, nearly 80% of the $620+ million
worth of deals in AR/VR were related to hardware development.

- Cybersecurity: Headline grabbing data thefts, government and corporate breaches underpin high growth
in spending on cybersecurity driving investment and M&A activity in the sector. Deal volumes remain
high with 80 security related acquisitions tracked in 1H 2017. Valuations maintain a healthy level as well
with EV/S (i.e. revenue multiples) clocking in at 4.7x on disclosed transactions for the period 2015
through 1H 2017.

- Automotive Technology: European investors are setting the pace in automotive technology, with 59% of
automotive technology companies acquired by European buyers compared with 37% purchased by North
American investors.

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- Digital Marketing: Deal sizes in marketing application software M&A grew at the start of the year, with
total transaction values for 1H 2017 up 20% to $1.7 billion versus the previous half-year period.

- E-Commerce: The global e-commerce industry is rapidly evolving as European investors dominated
another half-year period of regional dealmaking. In the last 30 months, European buyers acquired 63% of
regional targets compared to 32% of targets from North American investors.

- Enterprise Software: Global M&A volume increased 12% in 1H 2017 versus the previous half-year
period with earnings based valuation metrics (EV/EBITDA) remaining stable at 14.5x. Political
uncertainty in Britain had little impact on deal flow in enterprise software as the number of UK deals
grew by a modest 5% from the previous half year and accounted for 35% of all deals in Europe.

- Financial Technology: M&A deal activity in Fintech is up 8% in 1H 2017 and beginning to recover
from its sharp drop in 2H 2016, however, still not at the levels registered from mid-2014 to mid-2016.
Within the Fintech sub-sector, Online Financial Services, valuations are increasing as private equity
purchasers focus on purchasing payment providers.

- Internet of Things: Intel, Verizon and ARM head up the list of Top Acquirers in IoT. 198 buyers were
active snapping up 239 IoT assets from 2015 through 1H 2017. While the median revenues paid on
disclosed transactions has come in at 3.5x during that period, some deals were inked with EV/S ratios as
high as 21x.

- IT Services: Of the top 50 highest valued deal during 1H 2017, more than half were cross border deals,
building on from the second half of 2016 where 40% of the top 50 transactions crossed national borders.
Additionally, global private equity deal flow showed a marked turnaround. There were 48 private equity
deals announced in 1H 2017, doubling the number of deals private equity buyers closed during the
previous six months.

- SaaS & Cloud: SaaS and Cloud sector picked up in 1H 2017 as deal flow in the information
management and enterprise applications/networking sub sectors increased this year by 7%, as interest
from buyout funds drove to the total value of $5.22 billion across the SaaS & Cloud sector.

Hampleton's research team publishes semi-annual technology M&A market reports by sector with data on
transaction multiples, analysis of deal drivers, and informed discussions of current trends and what to
expect in the near- to mid-term future. The series of reports, empowers technology business owners,
sellers, acquirers and investors to evaluate sector specific valuations, as well as timing for their own
M&A activity or exit planning.

The full reports are available for download at:

About Hampleton Partners

Hampleton Partners is an international M&A advisory firm with offices in London, Frankfurt and San
Francisco, combining international reach, local resources, extensive deal making experience, focused

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sector knowledge, operational backgrounds, and a global network of industry contacts, to deliver its
corporate finance services to owners and management of technology companies. The firm's core offering
is advisory services in the sale of companies in its focus areas: AI, AR/VR, Automotive Technology,
Digital Marketing, E-Commerce, Enterprise Software, Fintech, Industry 4.0, and IT Services.

For more information please visit us here:

Hampleton Contact
Andrea Deutschmanek
Head of Marketing
+44 020 3728 6915

Media Contact
Zarna Patel
Montieth & Company
+44 020 3865 1947

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Contact Information:
Hampleton Partners
Andrea Deutschmanek
Contact via Email

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