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      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Entries in Mobile (25)

    Friday
    Oct262012

    CONSUMER APPS A BRIGHT SPOT IN THE ONLINE AND MOBILE INDUSTRY

    Total volume in Berkery Noyes’ Online and Mobile report for third quarter 2012 decreased 12 percent, from 516 to 454 transactions. Transaction value fell 33 percent, from $22.4 billion to $15.0 billion. However, the median revenue multiple increased from 1.5x to 1.9x and the median EBITDA multiple rose from 7.5x to 9.4x.

    M&A in the E-Commerce segment, after increasing 37 percent from first to second quarter 2012, declined 36 percent in third quarter 2012. This was partially influenced by a slow-down in daily deal transactions, a subsector that decreased 62 percent. In addition, activity in the social media marketing subsector improved 50 percent compared to a year ago but stayed flat in third quarter 2012, contributing to the E-Marketing & Search segment’s 20 percent drop-off in the last three months. 

    Meanwhile, transactions in the report involving consumer mobile apps showed a robust level of activity, rising 42 percent on a quarterly basis.

    “The consumer industry is finding value in location based technologies and social discovery apps,” said Evan Klein, Managing Director at Berkery Noyes. “One interesting aspect is that companies can geocode and layer comparative shopping prices onto mobile devices in order for users to find the ‘best’ deals. These social networking applications, which allow for hyper-targeted local advertising, are capable of announcing deals or specials only to those within a certain radius of the business’ physical location.” 

    Tuesday
    Jun192012

    GOOGLE’S M&A ACTIVITY STARTING TO PICK UP

    After an unusually quiet first quarter, Google’s M&A activity in the Information Industry as tracked by Berkery Noyes has started to increase. Google made its first transaction of the year back in April, acquiring TxVia, a payments processing platform to go along with Google Wallet. Google’s acquisition of Motorola Mobility Holdings for $11.9 billion closed in May, and the search engine giant has already acquired KikScore, Meebo, and Quickoffice thus far in June.  

    Meebo, one of the aforementioned acquired companies, is a startup that helps online publishers connect their websites with social network sites. A similar deal that occurred recently was MyLife.com’s acquisition of Threadsy, an integrated communication client. MyLife enables users to access their email and social accounts in one place, which is similar to Thready’s technology. With this acquisition, MyLife plans to bolster its Personal Relationship Manager (PRM) for its 60 million members.

    Google’s overall M&A strategy remains focused on startups and acquiring new technologies. Following Facebook’s acquisition of Instagram, there has been speculation that Google may be interested in Pinterest or a similar type of visual oriented company.  Google has mentioned the need to improve its video discovery tools, and Pinterest would be a valuable asset to Google+. However, there is no indication that Pinterest would be willing to sell, especially after just raising $100 million in its latest round of funding.  Nonetheless, such a transaction would be one of Google’s most important strategic moves since acquiring YouTube in 2006 for $1.7 billion.

    Tuesday
    May222012

    CLOUD APPEALING TO ELECTRONICS MANUFACTURERS

    Electronics manufacturers are increasingly looking to implement cloud solutions to go along with their hardware products. Berkery Noyes has seen companies such as Dell and IBM complete several acquisitions in this direction. With hardware manufacturing as a core component of their business model and enterprises moving their data centers onto the cloud, diversifying through acquisition is a logical course of action.

    Regarding recent B2B cloud transactions, Dell has acquired Wyse Technology, AppAssure Software, Make Technologies and Clerity Solutions while IBM has acquired DemandTec. Some of Dell’s other competitors have been making cloud moves of their own.  For instance, Acer acquired iGware – a cloud technology developer – for $320 million in July 2011.

    In the B2C space, consumers are asking for more storage, faster content streaming, and a wider selection of entertainment possibilities. Apple, through iCloud, and Amazon via the Kindle Fire tablet, have both paired cloud services with their hardware. Samsung is now making strategic moves to incorporate cloud services as well.

    In early May, Samsung acquired mSpot, a cloud-based content provider. With this acquisition, Samsung hopes to improve the entertainment offerings for its line of smartphones and tablets. mSpot has several agreements with major studios to stream certain TV shows and movies straight to mobile phones. Likewise, an important aspect of the acquisition is to ensure an integrated experience for users across all of their Samsung devices.

    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
    May092012

    LOCATION BASED APPS AND SOCIAL DISCOVERY M&A

    Facebook has made several recent, albeit distinct, mobile acquisitions leading up to its initial public offering (IPO). We’ve discussed the acquisitions of Instagram and Tagtile in our previous posts. With its latest acquisition, Facebook has gained a new technology in the “social discovery” space.

    A few days ago, Facebook acquired Glancee, a location based and social discovery app for iOS and Android. Glancee matches users based on interests they have in common or that are relevant to one another. The tool aims to reveal hidden connections. According to PC Magazine, Facebook was also interested in Highlight, one of Glancee’s larger competitors.

    Another similar transaction this year was Groupon’s acquisition of Ditto.me, a social recommendation app. Going beyond the check-in feature of many location apps, Ditto.me allows users to ask their friends for suggestions on everything from places they should visit to restaurants they should patronize. As indicated in Berkery Noyes' first quarter Media and Marketing press release, Groupon has been an active acquirer in 2012, completing five Information Industry transactions so far.