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      MERGERS AND ACQUISITIONS UPDATES FROM BERKERY NOYES

    Entries in Online (23)

    Monday
    Feb102014

    ONLINE & MOBILE TRANSACTIONS CONTINUE TO RISE, AS YAHOO! GOES ON AN ACQUISITION SPREE

    According to Berkery Noyes’ Online & Mobile report for full year 2013, transaction volume increased eight percent on a year-to-year basis. Aggregate deal value declined six percent, from $70.98 billion in 2012 to $66.59 billion in 2013. The median revenue multiple remained nearly constant at 2.2x, while the median EBITDA multiple improved from 10.0x to 12.2x. Yahoo! was the industry’s most active acquirer with 27 transactions during 2013. Under CEO Marissa Mayer, Yahoo! has picked up its acquisition pace as it focuses on expanding its mobile capabilities.

    Deal volume in the consumer mobile application subsector increased 31 percent, from 168 transactions in 2012 to 220 transactions in 2013. In addition, there were several instances of non-traditional buyers acquiring consumer mobile applications throughout the year. This included high value deals such as Under Armour’s acquisition of MapMyFitness for $150 million and Hasbro’s acquisition of Backflip Studios for $112 million. 

    Transaction volume in the E-Commerce segment increased nine percent over the past year. One notable E-Commerce deal was Groupon’s acquisition of Ticket Monster from LivingSocial for $241 million. This divestiture reflects LivingSocial’s strategic focus beyond the daily deals subsector.

    “From a general standpoint, acquirers are showing interest in solutions that can facilitate better ways of mining customer data,” said Evan Klein, Managing Director of Berkery Noyes. “Many are also looking for more efficient means of leveraging content, search engine optimization capabilities, and turnkey campaign management programs.” Klein continued, “The numbers in our report indicate that mobile marketing is having a strong impact on M&A activity as well, given that advertisers and brands are looking to connect with consumers in real-time using this relatively nascent platform.”

    Tuesday
    Nov122013

    ONLINE AND MOBILE M&A ACTIVITY REMAINS ROBUST IN THIRD QUARTER 2013

    According to Berkery Noyes’ Online and Mobile report for third quarter 2013, total volume experienced an uptick, from 541 to 549 transactions. At the same time, deal value declined four percent, from $17.0 billion to $16.3 billion. The median revenue multiple moved slightly from 2.3x to 2.2x, while the median EBITDA multiple rose from 10.0x to 12.0x.

    The SaaS & Cloud segment underwent a five percent decrease in volume on a quarter-to-quarter basis. However, the number of SaaS & Cloud deals throughout the first three quarters of 2013 increased 11 percent compared to the same timeframe in 2012. 

    Regarding the E-Marketing & Search segment, deal volume remained about constant on a quarterly basis. An ongoing trend in the segment pertains to possible monetization opportunities from social media monitoring, especially as it relates to television. Along these lines, Twitter acquired Trendrr in third quarter 2013 as well as BlueFin Labs earlier in the year. There were also several high value deals that involved video advertising platforms in third quarter 2013, such as Extreme Reach’s acquisition of Digital Generation’s television business for $485 million and AOL acquired Adap.tv for $405 million. 

    Moreover, there were two high profile mobile advertising transactions during the quarter, each of which highlights the growing interest in real-time bidding solutions. Within this subset, Twitter acquired mobile ad serving platform MoPub for an estimated $350 million while Millennial Media acquired mobile ad network Jumptap for $239 million. Another similarity between the two deals is that they were both all stock acquisitions.

    “The advertising marketplace is undergoing a transformation,” said Mary Jo Zandy, Managing Director at Berkery Noyes. “Digital video is impacting traditional media buying practices, social media networks are looking to effectively monetize digital ads, and mobile marketers are trying to engage their audience with more targeted offerings. These are just some of the factors that are fostering a positive environment for M&A in the sector going forward.”

    Monday
    Jul292013

    TRANSACTION VOLUME IN THE ONLINE AND MOBILE INDUSTRY SHOWS SIGNS OF STRENGTH

    Berkery Noyes’ Online and Mobile report for half year 2013 showed an uptick in transaction activity. Deal volume increased seven percent relative to the prior half year period, from 953 to 1,015 transactions. However, value decreased 29 percent, from $32.54 billion in second half 2012 to $23.16 billion in first half 2013.

    SaaS & Cloud was the most active market segment and underwent a 15 percent increase in volume, totaling 291 transactions year-to-date. M&A activity in the Communications segment improved 22 percent since second half 2012, making it the sector with the largest half-to-half year increase. One notable Communications transaction in first half 2013 was Dropbox’s acquisition of mobile email application Mailbox.

    In addition, acquirers are looking to add mobile solutions that aggregate relevant content in relation to individual users, as news is shared in real-time. There were several deals over the past six months that focused on news summary and content sharing, such as LinkedIn’s acquisition of Pulse for $90 million, Google’s acquisition of Wavii for $30 million, and Yahoo!’s acquisition of Summly for $30 million.

    “Mobile continues to be a strong driver of M&A activity in the information marketplace,” stated Mary Jo Zandy, Managing Director at Berkery Noyes. “Content delivery methods are evolving, and acquirers in general are showing more interest in semantic technologies that improve the end-user experience.”

    Monday
    Apr222013

    MOBILE M&A VOLUME CONTINUES ITS UPWARD TRAJECTORY

    Berkery Noyes’ Online and Mobile Industry report showed an improvement in M&A activity throughout several market segments. Overall deal volume increased three percent relative to the prior quarter. However, transaction value decreased 50 percent, from $15.8 billion in Q4 2012 to $7.9 billion in Q1 2013. The SaaS/ASP segment experienced the largest quarterly rise in volume, improving 16 percent. 

    Transaction volume in the E-Commerce segment increased six percent between Q4 2012 and Q1 2013. The segment’s highest value deal in Q1 2013 was Google’s announced acquisition of Channel Intelligence for $125 million. In addition, major financial technology players completed several large Online and Mobile payments acquisitions during Q1 2013. For instance, ACI Worldwide acquired Online Resources Corporation for $203 million and FIS acquired mFoundry for $120 million.

    M&A involving transactions with a large mobile component increased 33 percent over the past three months. Along these lines, there were several acquisitions in the food service information and content space. This included Yahoo!’s acquisition of Alike, which enables users to make recommendations about their favorite food establishments; and OpenTable’s acquisition of Foodspotting, an application that helps users share information about particular dishes.

    As for the E-Marketing & Search segment, M&A activity increased nine percent in Q1 2013. Regarding the segment’s social media marketing subset, one notable acquisition in Q1 2013 was Twitter’s acquisition of BlueFin Labs. A key goal of acquiring the social television analytics company is for Twitter to gain additional advertising revenue by leveraging viewer data. TiVo and The Nielsen Company completed E-Marketing acquisitions in 2012, both of which focused on improving the ability to measure digital audiences.

    Thursday
    Jan102013

    MOBILE APPLICATION AND SOCIAL MEDIA MARKETING TRANSACTION VOLUME BOTH UP FOR THE YEAR

    Berkery Noyes has unveiled its Online and Mobile Industry M&A Report for Full Year 2012.

    According to the firm’s research, transaction volume increased four percent on a year-to-year basis and 37 percent relative to 2010. The median revenue multiple improved slightly from 2.1x in 2011 to 2.3x in 2012, while the median EBITDA multiple declined from 11.9x to 10.8x. 

    Oracle was responsible for two of the report’s top ten highest value deals in 2012. This included the acquisition of Taleo, a cloud based talent management provider, for $1.80 billion and the acquisition of Eloqua, a creator of marketing automation software, for $871 million. 

    In the mobile application subsector, the number of transactions increased 18 percent over the past year. Transactions involving mobile consumer applications increased 34 percent, from 121 to 162, whereas those pertaining to mobile business applications rose seven percent, from 158 to 169.

    Meanwhile, volume in the E-Marketing & Search segment increased 44 percent from 2010 to 2011 and eight percent between 2011 and 2012. Much of this activity over the past two years highlights an interest in analytics and interactive marketing, as advertisers and others seek measurable results within targeted demographics. Accordingly, deal flow in the social media marketing subsector more than doubled since 2011.

    “Businesses recognize that their content and customer feedback is being shared through social media with minimal corporate oversight,” said Evan Klein, Managing Director at Berkery Noyes. “Since many consumers have a desire to instantaneously share opinions and recommendations, companies that analyze online social engagement have the potential to alter the current market landscape.” Klein continued, “This is also true within the B2B marketplace, as companies consider making acquisitions to leverage their social marketing efforts targeting both large and small organizations alike.”