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      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Entries in Marketing (21)

    Thursday
    Jul232015

    INTERNET MEDIA VOLUME OUTPACES ALL OTHER INDUSTRY SECTORS IN FIRST HALF 2015

    Berkery Noyes’ Media and Marketing report for first half 2015 revealed that deal volume saw a three percent uptick on a half year basis, from 841 to 863 transactions. Total value fell 31 percent, from $52.72 billion to $36.48 billion.

    The highest value deal in first half 2015 was Verizon Communications’ acquisition of AOL for $4.13 billion in the Internet Media segment. Internet Media also had the largest half year increase in volume, rising 25 percent. Regarding specific Internet Media subsectors, there was a 36 percent rise in the online classifieds marketplace, from 47 to 64 acquisitions. One of the largest related deals thus far in 2015 was CoStar Group’s acquisition of Apartment Finder for $170 million.

    Marketing transaction volume underwent a four percent increase in first half 2015. In addition, deals in the digital marketing subsector represented 45 percent of the segment’s overall activity in first half 2015.

    Japanese advertising company Dentsu was the overall industry’s most active acquirer with nine transactions year-to-date. High profile Marketing deals in first half 2015 included GTCR and Adams Outdoor Advertising’s acquisition of Fairway Outdoor Advertising for $575 million; Red Ventures’ acquisition of Pitney Bowes’ marketing services business, Imagitas, for $310 million; and Solera Holdings’ acquisition of DMEautomotive, a provider of marketing solutions for the retail automotive industry, for $143 million.

    Deal activity in the Exhibitions, Conferences, and Seminars segment saw a twelve percent improvement, from 43 to 48 transactions. Also of note, private equity backed deals in the segment nearly quintupled between second half 2014 and first half 2015, from four to 19 acquisitions. The segment’s largest transaction in first half 2015 was the acquisition of Cirque du Soleil by an investor group led by TPG Capital for $1.2 billion.

    “Many media and marketing companies are looking for acquisitions to enhance their growth,” said Mary Jo Zandy, Managing Director at Berkery Noyes. “They are also making investments in those areas where their clients are spending the most money and where they can sell their services at a premium. M&A activity is robust due to the high stock market valuations and the low cost of financing transactions.”

    Monday
    Apr202015

    MEDIA AND MARKETING VOLUME SLOWS AFTER AN ACTIVE END TO 2014

    Berkery Noyes’ Media and Marketing report for Q1 2015 showed that transaction volume decreased 11 percent in Q1 2015. This followed a 16 percent rise in Q4 2014. Total value declined 35 percent over the past three months, from $24.1 billion to $15.6 billion.

    Of note, eight of the industry’s top ten largest deals in Q1 2015 were based outside of the U.S. The industry’s largest transaction during the quarter was Verisk Analytics’ acquisition of Wood Mackenzie. The data analytics and research firm, which focuses on the oil, gas, and mining market, was acquired for $2.8 billion. This marked an exit for private equity firm Hellman & Friedman, which acquired Wood Mackenzie in 2012 for $1.1 billion.

    The Marketing segment saw volume remain flat for the fourth consecutive quarter. Marketing deals represented one-third of aggregate volume in Q1 2015, nearly the same percentage as in Q4 2014. It also retained its position as the industry’s most active sector, slightly surpassing the Internet Media segment. The largest Marketing deal year-to-date was Dalian Wanda Group’s acquisition of Infront Sports & Media AG for $1.1 billion. The international sports marketing company offers an array of services such as media rights distribution, brand development, and event sponsorship.

    After almost doubling in Q4 2014, the Exhibitions, Conferences, and Seminars segment stayed about constant in Q1 2015, with a total of 25 transactions. The highest value deal in the segment during the quarter was Providence Equity Partners’ acquisition of Clarion Events for $307 million.

    Total volume in the B2B Publishing and Information segment decreased 25 percent on a quarter-to-quarter basis. This followed a 24 percent rise in Q4 2014, which was its peak throughout the past five quarters. Notable deals in the B2B segment during Q1 2015 included Nielsen’s acquisition of eXelate, a data technology company in the programmatic advertising space, for an estimated $200 million and Dun & Bradstreet’s acquisition of NetProspex, a B2B data services and data management provider, for $125 million.

    “Many B2B media organizations are seeking to capture a larger share of marketing spend by providing a host of services to their clients,” said Mary Jo Zandy, Managing Director at Berkery Noyes. “As B2B media create new product and service offerings, their clients – the B2B marketers – continue to divert a growing share of their marketing budget to new marketing services. These offerings are a means to augment revenue.”

    Wednesday
    Jan212015

    MEDIA AND MARKETING DEAL VOLUME REMAINS CONSTANT AS VALUE RISES

    Berkery Noyes’ Media and Marketing report for full year 2014 showed that deal volume remained nearly constant on a year-to-year basis. The number of private equity backed transactions increased 35 percent, from 156 to 211 deals. Aggregate deal value gained 22 percent, from $75.22 billion in 2013 to $91.45 billion in 2014. In terms of valuations, the median revenue multiple stayed the same at 2.0x, while the median EBITDA multiple rose from 9.7x to 10.9x.

    The Marketing segment accounted for four of the industry’s top ten highest value deals in 2014, making it the best represented segment in the top ten list. In addition, the segment’s value more than tripled over the past year, from $7.44 billion to $24.10 billion. Along these lines there were four Marketing transactions above $2 billion in 2014, compared to one such deal in 2013.

    The largest strategic Marketing deal during the year was Publicis Groupe SA’s acquisition of Sapient Corporation for $3.39 billion. This transaction, with a focus on expanding Publicis’ digital capabilities, comes in the aftermath of the company’s failed mega-merger with Omnicom. Sapient Corporation, through its digital marketing and advertising subsidiary SapientNitro, completed several deals in 2014 prior to being acquired by Publicis with the acquisitions of two creative agencies, Campfire and La Comunidad.

    As for other markets covered in the report, the segment with the largest year-to-year rise in volume was Exhibitions, Conferences, and Seminars. This sector saw volume increase 16 percent, from 74 to 86 transactions. Notable segment deals in 2014 included United Business Media Limited’s acquisition of Advanstar Communications for $972 million and Informa’s acquisition of Hanley Wood Exhibitions for $375 million.

    Deal flow within the B2B Publishing and Information segment fell seven percent on a yearly basis. However, the segment’s financially sponsored volume improved 62 percent, from 26 to 42 deals. In terms of the Consumer Publishing segment, deal volume declined 18 percent in 2014, which marked a return to its 2013 level. The largest deal in the Consumer Publishing segment in 2014 was Apax Partners’ acquisition of Trader Media Group for $1.93 billion.

    “Publishers have achieved success in this rapidly changing market through leveraging their content and brand equity across various media platforms for deeper penetration,” said Mary Jo Zandy, Managing Director at Berkery Noyes. “Many B2B media companies are also growing revenue by providing a host of marketing services to their existing client base.”  Zandy continued, “To support this strategy, media companies and the private equity investors backing them seek data, research, and consulting firm acquisitions to enhance their product offerings.”

    Tuesday
    Jul152014

    MEDIA AND MARKETING DEAL VOLUME DECLINES SLIGHTLY AS VALUE RISES

    According to Berkery Noyes’ latest Media and Marketing report, deal volume decreased three percent on a half year basis. Total value increased nine percent, from $45.80 billion to $49.78 billion. However, when contrasted with first half 2013, volume in first half 2014 increased four percent and value gained 70 percent. The median revenue multiple over the past six months declined from 2.0x to 1.4x, while the median EBITDA multiple moved slightly from 8.9x to 8.3x.

    The segment with the largest half-to-half year increase in volume was Marketing, which rose seven percent. Marketing transactions accounted for 36 percent of the industry’s aggregate volume in first half 2014, a four percent uptick compared to second half 2013. In addition, deals in the digital marketing subsector represented 41 percent of the segment’s overall volume in first half 2014.

    Transaction volume in the Consumer Publishing segment decreased ten percent over the past six months. This followed an 18 percent increase between first and second half 2013. The segment’s highest value transaction in first half 2014 was Apax Partners’ acquisition of Trader Media Group for $1.92 billion. After remaining nearly constant from first to second half 2013, the number of acquisitions in the B2B Publishing and Information segment fell 16 percent.

    Of note, financial sponsors in first half 2014 accounted for 11 percent of aggregate Media and Marketing transaction volume but represented 31 percent of volume within the B2B segment.

    “We expect to see more divestitures by global companies of declining print-based businesses and, among these, some established brands and franchises for which there exist attractive cross-platform or cross-market opportunities for acquirers with that expertise,” said Mary Jo Zandy, Managing Director at Berkery Noyes.

    Deal flow in the Internet Media segment decreased eight percent relative to second half 2013. However, total value in the segment gained 41 percent. Notable Internet Media transactions in first half 2014 included Hellman & Friedman’s acquisition of Internet Brands for $1.1 billion and YouTube’s acquisition of Twitch Interactive for a reported $1 billion.

    Monday
    May052014

    OVERALL MEDIA DEAL VOLUME STAYS CONSISTENT WHILE MARKETING M&A ACTIVITY RISES

    Berkery Noyes has released its Media and Marketing report for Q1 2014. Transaction volume saw a three percent uptick over the past three months. Total deal value also rose slightly, from $25.1 billion to $25.8 billion. The peak for both volume and value throughout the last five quarters occurred in Q3 2013.

    The Marketing segment had the industry’s largest quarterly rise in volume, with a 22 percent increase in Q1 2014. This followed an eight percent decline in the prior three-month period. In terms of additional sectors covered in the report, deal activity in the Internet Media segment decreased eight percent over the past quarter. After more than doubling in Q4 2013, the Exhibitions, Conferences, and Seminars segment experienced a slight decrease in Q1 2014, from 27 to 24 deals.

    Total volume in the B2B Publishing and Information segment was flat on a quarter-to-quarter basis. Notable B2B deals in the database information subsector that were backed by financial sponsors included GTCR’s acquisition of Callcredit Information Group for $586 million and Vestar Capital Partners’ acquisition of Institutional Shareholder Services for $364 million. Meanwhile, the number of deals in the Consumer Publishing segment fell 20 percent.

    M&A activity in the Entertainment Content segment increased 14 percent in Q1 2014. The largest Entertainment deal during the quarter was The Walt Disney Company’s acquisition of Maker Studios for $500 million, as Disney looks to strengthen its online video network. This transaction also includes a potential earn-out of $450 million, bringing its total enterprise value to $950 million.

    The highest value deal in the Entertainment segment’s video game subsector was Zynga’s acquisition of NaturalMotion Games for $477 million. This was the highest value transaction ever recorded by Zynga, going back to its first acquisition in 2010.

    “The amount of debt and equity currently available in the marketplace is fostering an environment that is favorable to M&A,” said Evan Klein, Managing Director at Berkery Noyes. “As the economic recovery continues to gain traction, companies are increasingly interested in making strategic acquisitions to supplement their organic growth.”