The rising inflation and interest rates alongside the global recession have created chaos in the market. Investors are witnessing substantial losses and steep drops in valuations resulting in a risk-averse investment environment.
In a recent move, a string of M&A deals designed to help shield valuations for tech startups was finalised and the latest one was between Getir and Gorillas, the two popular instant grocery delivery rivals merged. Though the market for speedy groceries is flourishing of late, both companies had to lay off several hundreds of staff in 2022, which is a trend followed by tech biggies. As a result, both the companies saw a significant drop in their valuations by billions as compared to previous investment rounds.
As per the M&A specialists from business advisory firm Trachet, there is a risk of getting funded at a time when investors are focused on profitability. Also, the trend of dropping valuations is likely to persist in 2023 as well.
That said, before the year ends, we at TFN have listed the notable acquisitions of European startups in 2022.
Carta acquired London fintech and rival Capdesk
In September, Silicon Valley-based tech equity unicorn Carta announced the acquisition of European equity management leader Capdesk. The pair will empower businesses all over the world to scale across borders. The two companies help startups attract the best talent, empower employees to own and access the wealth they helped create at a time that suits them, and equip investors with greater control over their portfolios.
London fintech Capdesk was founded by Casper Arbøll, Christian Gabriel, Martin Damhus, and Mikkel Boje. To date, it hads raised $13.6 million in funding.
Tide acquired Funding Options
Another London-based fintech Tide, which is a business banking platform saving small businesses time and money on their banking and admin – last month,made its first acquisition by buying a SME credit marketplace, Funding Options. With this acquisition, Tide’s 475,000 customers got access to Funding Options’ panel of over 120 lender partners.
Funding Options was established in 2011 by Conrad Ford in England and raised a total funding of $15.4 million.
Meta acquired Audio Analytic
Amidst the mass layoffs and Metaverse turmoil, Meta, the parent company of Facebook and Instagram, acquired Cambridge-based Audio Analytic last month. Founded in 2008 by Chris Mitchell, Audio Analytic builds AI-driven sound recognition software. While the exact value of acquisition remains unknown, the company has secured $19.8 million funding to date. Reportedly, the company will join Meta’s Reality Labs division, which handles the development of AR and VR tech.
The Original Fit Factory on acquisition spree
Founded in 2016 by fitness industry veteran David Weir, The Original Fit Factory provides wellness and fitness services that elevate the wellbeing journey for everyone. The company completed $137 million worth of acquisitions of eight international well-being and lifestyle companies, including US-based fitness and yoga studio franchise TruFusion.
The other brands acquired by the company include an end-to-end ecommerce company Wolfson Brands, holistic employee well-being platform Elf at Work, nutrition and wellness brand Smart Protein, active experiential and fun run provider Cool Events, remote events platform Virtual Run, sustainable lifestyle apparel brand Niyama Sol, and military fitness program Battle Ready 360.
Trimble acquired Transporeon
Last week, California-based Trimble, which makes GPS navigation products, announced the acquisition of German logistics software startup Transporeon in an all-cash deal valued at €1.88 billion. Trimble is eyeing to expand into the transport tech market by scooping up this startup, which uses cloud-based software to plan logistics and cut empty truck volumes and carbon-dioxide consumption.
Founded by Leander Kling, Marc-Oliver Simon, and Peter Forster in 2000 in Germany, Transporeon has raised $45.6 million in total funding so far.
Bitcoin Group SE acquired a 268-year-old German bank
Bitcoin Group SE just acquired the 268-year-old German bank, Bankhaus von der Heydt in a bid worth $19.6 million. Being one of Germany’s first lenders to offer digital asset trading and custody services, Bankhaus von der Heydt, had difficulties managing costs.
The parent company of the German crypto trading platform bitcoin.de wants to complete the restructuring within 2023. It is a full takeover with the owner of Bankhaus von der Heydt, Dietrich von Boetticher and it will be completed next year.
Mangopay acquired Polish startup Nethone
Late last month, Luxembourg fintech Mangopay specialised in payment solutions for platforms and marketplaces, announced the acquisition of Polish anti-fraud tech startup Nethone for an undisclosed sum. This deal is expected to further enhance its anti-fraud solutions for marketplaces. Nethone will continue to serve its existing clients while integrating its technology into the Mangopay platform.
Kacper Szcześniak founded Nethone in 2016 to allow online merchants and financial institutions to understand their end-users in industry parlance. To date, the startup snapped $7.7 million.
eToro acquired Bullsheet
eToro, the Israel-born social investing network, has acquired Portuguese portfolio management provider Bullsheet founded in 2021 by cousins Filipe Sommer and João Ramalho Carlos. Designed exclusively for eToro users and provides portfolio management tools that will enable them to analyse the diversification of their portfolio alongside a suite of other tools.
BNP Paribas acquired Kantox
London-based currency management automation software startup Kantox was acquired by BNP Paribas in October for €120 million. The partnership between the two companies started in September 2019 and this deal demonstrates BNP Paribas’ Growth Technology Sustainability 2025 plan.
Founded by Antonio Rami, John Carbajal, and Philippe Gelis in 2011, Kantox has secured a total funding of $33.7 million prior to its acquisition.
Let us know in the comments, if we are missing any substantial M&A in this piece, we will be happy to add.