Could GM’s $1 billion acquisition of Cruise Automation and Intel’s $15.3 billion purchase of Mobileye be the tip of the iceberg for deals in the auto industry?
Although the valuations might not be as robust as they were in 2015, emerging technologies such as autonomous systems and connected vehicles could be a catalyst for mergers and acquisitions in the automotive industry, the law firm Foley & Lardner LLP asserts.
“Perhaps the highest-profile development in the automotive M&A market in the past few years has been [the] increase of deal activity driven by emerging technologies in smart cars, electric vehicles, connected and autonomous driving and ride sharing,” Steven Hilfinger and Joshua Munro assert in “The 2017 Automotive Mergers and Acquisitions Outlook.”
“Companies from the major automakers down through the supply chain, to technology and startup companies traditionally outside of the automotive space, have raced to invest in, acquire and develop these technologies.
“ … Automotive companies are using M&A as the fastest strategy for acquiring technology, and we can expect this trend to continue in 2017.”