Search
Social Media
Feedback
This form does not yet contain any fields.

      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Entries in Marketing (21)

    Tuesday
    Jan082013

    EXHIBITIONS, CONFERENCES, AND SEMINARS SEGMENT DRIVES M&A IN THE MEDIA AND MARKETING INDUSTRY

    Berkery Noyes has released its Media and Marketing Industry M&A Report for Full Year 2012.

    Deal volume increased three percent on a year-to-year basis, from 1,570 transactions to 1,611 transactions, and rose 22 percent relative to 2010. Aggregate transaction value showed a gain of 17 percent, from $65.41 billion in 2011 to $76.23 billion in 2012.

    Transaction volume specifically within the Exhibitions, Conferences, and Seminars segment increased 82 percent compared to 2011. The most active segment acquirer during the three years covered in the report was United Business Media Limited (UBM) with 27 transactions. In addition, financial sponsors accounted for 18 transactions in the segment in 2012, as opposed to eight transactions in 2011. This represented 22 percent of the segment’s 2012 volume, a slight uptick from 18 percent the prior year.

    M&A activity in the Entertainment Content segment improved 18 percent from 2011 to 2012. This was driven in part by film studio related transactions, which increased 42 percent throughout the last twelve months. On a similar note, The Walt Disney Company’s acquisition of Lucasfilm for $4.10 billion in 2012 was the highest value Entertainment deal contained in the report.

    M&A in the B2B segment increased four percent from 2011 to 2012, with a median revenue multiple of 2.0x and a median EBITDA multiple of 9.0x. This was well above the overall industry’s median enterprise value multiples for the year.

    “The ongoing trend toward non-print based delivery has led to changing business models in some instances,” said Kathleen Thomas, Managing Director at Berkery Noyes. “This includes many along the spectrum from recurring revenue offerings to purely advertising based revenue ones. Nonetheless, strong original content is still king in the B2B marketplace, regardless of the delivery mechanism.”

    Monday
    Oct222012

    MEDIA AND MARKETING INDUSTRY SEES HIGHER VALUE DEALS AND RISING REVENUE MULTIPLES

    Berkery Noyes has issued its Media and Marketing Industry merger and acquisition (M&A) report for third quarter 2012. 

    Transaction volume during the first three quarters of 2012 increased five percent compared to the same time period in 2011. M&A activity specifically from second to third quarter 2012 declined five percent. However, total transaction value increased 42 percent and the median revenue multiple rose from 1.0x to 1.5x. In the Marketing segment, Dentsu’s announced acquisition of Aegis Group for $4.9 billion in the third quarter accounted for the largest industry transaction thus far in 2012.

    M&A activity in the B2B Publishing and Information segment increased 18 percent compared to second quarter 2012. “B2B information producers continue to be attractive acquisition targets when they provide high quality data and information on a subscription basis,” stated Kathleen Thomas, Managing Director at Berkery Noyes. “Users continue to demand high quality content, accessibility through many mediums, and more interaction with content creators. All of these factors are driving interest in business information providers.”

    In addition, private equity acquirers accounted for 12 percent of Media and Marketing transaction volume but 31 percent of aggregate value year-to-date. The Carlyle Group’s announced acquisition of Getty Images from Hellman & Friedman for $3.3 billion in third quarter 2012 was the largest private equity backed transaction in the report. 

    Monday
    May142012

    MOBILE MARKETING AND ADVERTISING M&A

    In Berkery Noyes’ first quarter 2012 Online and Mobile press release, we discussed M&A surrounding mobile marketing and advertising. Digital marketing, examined as a subset of the e-marketing and search segment, experienced a seven percent increase in M&A activity in the first three months of 2012.

    In particular, we noted SingTel’s acquisition of Amobee for $321 million. Amobee just made its own acquisition, buying AdJitsu from Cooliris nearly a week ago. This acquisition will allow Amobee to leverage AdJitsu’s 3D mobile ad technology. One key aspect of product development in mobile advertising, as indicated by Amobee’s acquisition of AdJitsu, is for companies to make ads more interactive – with the end goal of increasing consumer engagement and brand loyalty.

    There have been other recent deals in this space as well. For example, Monster Offers and Ad Shark announced last Wednesday that they have agreed to merge. Ad Shark is a subsidiary of Iconsys, an app technology developer. This transaction indicates a strategic fit between a daily deal analytics aggregator (Monster Offers) and a mobile advertising platform (Ad Shark).

    With the ongoing need for technological innovation this nascent market, M&A provides a logical pathway for companies to attain the necessary expertise and cutting edge tools that will place them in a strong position going forward.

    Wednesday
    Apr182012

    MEDIA AND MARKETING FIRST QUARTER 2012 TRENDS REPORT

    Berkery Noyes has released its Media and Marketing M&A trends report for the first quarter. 

    The Marketing segment, which saw overall deal activity rise 13 percent, was bolstered by Digital Marketing’s 68 percent rise in volume. According to Kathleen Thomas, managing director at Berkery Noyes, “Content delivery is in the midst of a permanent transformation. Marketers have vast opportunities in front of them to reach customers effectively and efficiently and businesses have compelling new models to attract and monetize end users.”

    For example, OwnerIQ’s acquisition of DiJiPOP shows demand in the marketplace for solutions that facilitate the conversion of website visitors into paying customers. Targeted advertising and paid product placements that occur in real time are becoming even more popular among retailers, as highlighted by their more frequent use of social media to identify and engage potential consumers.

    In the Entertainment segment, 18 of the 38 deals for the quarter were either video or online games. “Zynga’s acquisition of OMGPOP.com for $180 million demonstrates the potential for M&A in social gaming, an area that appears poised for growth,” said Berkery Noyes managing director Evan Klein.” 

    Tuesday
    Feb282012

    RETAILERS ARE BUILDING THEIR OWN DIGITAL MARKETING DIVISIONS

    As we noted in our Online and Mobile Industry M&A press release, large retailers are becoming increasingly active in digital marketing. We mentioned Walmart’s acquisition of Kosmix Corporation, a social media company, for $300 million. Kosmix is now part of @WalmartLabs, the retailer’s social and mobile commerce platform. In early January, @WalmartLabs acquired Small Society, a company that helps organizations create iOS applications for Apple devices.

    Other retailers have completed deals related to digital marketing as well. For instance, The Home Depot announced its acquisition of Redbeacon.com on January 20th. 

    Redbeacon utilizes technology that connects homeowners to local service professionals. As an example, Redbeacon's algorithm is capable of incorporating data from a consumer’s Facebook account in order to make tailored suggestions on which professionals users should hire.

    In addition, online retailer Amazon.com acquired Quorus in the fourth quarter of 2011. Quorus develops marketing and social shopping applications for retailers, allowing companies to communicate and live chat with prospective customers based on the products they’re interested in purchasing.

    These acquisitions by Walmart, The Home Depot, and Amazon.com shows there’s interest among retailers in growing market share by expanding established brands through social media.