Jan 5, 2014 - Valassis Communications, Inc. ..... PetMed Express, Inc. .... Blinkx' $65 million acquisition of mobile vi
December 2013
Expertise. Commitment. Results.
M&A and Investment Summary
Table of Contents
1
Overview of Monthly M&A and Investment Activity
3
2
Monthly M&A and Investment Activity by Industry Segment
10
3
Additional Monthly M&A and Investment Activity Data
40
4
About Petsky Prunier
53
Securities offered through Petsky Prunier Securities, LLC, member of FINRA. This M&A and Investment Summary has been prepared by and is being distributed in the United States by Petsky Prunier, a broker dealer register with the U.S. SEC and a member of FINRA. Petsky Prunier is not affiliated with Altium Capital Ltd, but has partnered with Altium to expand its international presence. Altium has not prepared or verified the information in this Summary. Persons in the United States should contact Petsky Prunier for further information or services. This M&A and Investment Summary is not being distributed by Altium Capital Ltd in the United States and Altium Capital Ltd is not offering any services to persons in the United States. 2 | M&A and Investment Summary December 2013
M&A and Investment Summary for All Segments
Transaction Distribution
A total of 301 deals were announced in December 2013, of which 205 reported transaction values, totaling $14.7 billion Digital Media/Commerce and Marketing Technology were the most active segments with 66 and 62 deals announced, respectively Traditional Media was the highest reported value segment with 11 deals announced, of which six were reported at $2.6 billion in aggregate value
Strategic buyers announced 112 deals (37 percent of total volume), of which 39 were worth $11.4 billion in aggregate value VC/Growth Capital investors announced 177 deals, of which 164 were reported for $2.3 billion Buyout investors announced 12 deals during the month, of which two were reported at $1.1 billion in aggregate value December 2013 BUYER/INVESTOR BREAKDOWN Transactions #
Reported Value
%
$MM
Strategic %
#
Buyout $MM
Venture/Growth Capital
#
$MM
#
$MM
Digital Media/Commerce
66
22%
$1,896.7
13%
11
$265.0
2
$625.7
53
Marketing Technology
62
21%
2,535.5
17%
19
2,127.7
3
‐
40
407.8
Software
54
18%
1,044.8
7%
22
796.0
2
‐
30
248.8
Technology & Communications
36
12%
2,177.8
15%
15
1,965.1
1
‐
20
212.7
Information & Business Services
31
10%
748.5
5%
17
135.0
4
501.0
10
112.5
Digital Advertising
28
9%
1,387.3
9%
10
1,168.0
0
‐
18
219.3
Agency & Marketing Services
13
4%
2,365.6
16%
8
2,313.6
0
‐
5
52.0
Traditional Media
11
4%
2,588.2
18%
10
2,588.2
0
‐
1
‐
301
100%
14,744.4
100%
112
11,358.6
12
1,126.7
177
2,259.1
Total
3 | M&A and Investment Summary December 2013
$1,006.0
M&A and Investment Summary for All Segments
Transaction Distribution
Compared to the previous month aggregate reported value in December increased 26 percent Strategic activity accounted for 76 percent of reported deal value during the month, and included: • Harland Clarke’s pending $1.8 billion acquisition of marketing services company Valassis Communications, at a reported valuation of more than $1.8 billion
• NCR’s $1.7 billion purchase of financial management solutions company Digital Insight
$40.0
$500.0
$38.0
$450.0
$35.0 $30.0
$400.0
Omnicom/ Publicis
$25.0
$350.0 $300.0
(2)
$20.2
$20.0
$21.6
$250.0
$18.0 $14.7
$15.0 $10.0
$9.9
$11.7 $7.2
$6.1
(1)
$8.7
$7.5
$150.0
$8.4
$7.7
$100.0
$5.0 $‐
(1) (2)
$50.0
253
409
298
335
357
361
384
363
384
373
307
288
296
Dec‐12
Jan‐13
Feb‐13
Mar‐13
Apr‐13
May‐13
Jun‐13
Jul‐13
Aug‐13
Sep‐13
Oct‐13
Nov‐13
Dec‐13
Aggregate totals for February 2013 do not include Liberty Global’s $24.3 billion acquisition of Virgin Media or Comcast’s $16.7 billion acquisition of its remaining 49 percent stake in NBC Universal Aggregate totals for June 2013 do not include Vodafone’s $14 billion acquisition of Kabel Deutschland
4 | M&A and Investment Summary December 2013
$200.0
$-
Selected Transactions with Valuation Information Disclosed ($ in Millions)
Target
Subsegment
Buyer/Investor
Ent. Value
Rev
EBITDA
EV/REV
EV/EBITDA
Agency & Marketing Services IMG Worldwide, Inc.
Specialty Agency
William Morris Endeavor Entertainment
$ 2,300.00
$ 1,600.00
$ 176.90
1.4x
13.0x
Financial Information
BC Partners Limited
625.7
162.50
‐
3.9x
NA
Email/Messaging Software
Oracle Corporation
1,500.0
194.3
96.0
7.7x
15.6x
ERP Software
Amadeus IT Holding
500.0
110.0
‐
4.5x
NA
Financial Technology
NCR Corporation
1,650.0
330.0
‐
5.0x
NA
Shopper/Trader/Coupons
Harland Clarke Corp.
1,800.0
2,047.2
206.9
0.9x
8.7x
Information & Business Services Mergermarket, LLC Marketing Technology Responsys, Inc. Software Newmarket International, Inc. Technology & Communications Digital Insight Corporation Traditional Media Valassis Communications, Inc.
5 | M&A and Investment Summary December 2013
Selected IPOs with Valuation Information Disclosed ($ in Millions)
Target
Subsegment
Buyer/Investor
Ent. Value
Rev
EBITDA
EV/REV
EV/EBITDA
Digital Media/Commerce Autohome Inc.
eCommerce
IPO
$ 61.4
$ 171.9
$ 84.1
0.4x
0.7x
Data Storage Technology
IPO
1,538.1
104.2
(36.9)
14.8x
NM
Technology & Communications Nimble Storage
Note: IPO multiples based final share price and TTM financials and pro forma balance sheets per latest Registration Filing
6 | M&A and Investment Summary December 2013
Securities in Registration ($ in Millions)
LTM
Aggregate Date
Company Name
Country
Segment
Offering Value
Rev
EBITDA
Dec‐13
Ca re.com
United Sta tes
Digita l Media /Commerce
NA
74.9
(19.4)
Dec‐13
IMS Hea lth
United Sta tes
Informa ti on & Bus ines s Servi ces
NA
NA
NA
Oct‐13
Freela ncer.com
Aus tra l i a
Digita l Media /Commerce
14.2
NA
NA
Oct‐13
Va roni s Sys tems , Inc.
United Sta tes
Softwa re
100.0
NA
NA
Sep‐13
58.com
Chi na
Digita l Media /Commerce
150.0
NA
NA
Sep‐13
Mida s pl a yer.com Ltd. (Ki ng.com)
United Ki ngdom
Digita l Media /Commerce
NA
NA
NA
Sep‐13
Quna r.com
Chi na
Digita l Media /Commerce
125.0
NA
NA
Sep‐13
SunEdis on Semi conductor, Inc.
United Sta tes
Technol ogy & Communica tions
250.0
NA
NA
Jun‐12
gol denTech SA
Switzerl a nd
Softwa re
5.2
NA
NA
Jun‐12
Sha ngha i Ama rs oft Informa ti on Technol ogy
Chi na
Softwa re
NA
NA
NA
Apr‐12
Bla ckStra tus , Inc.
United Sta tes
Softwa re
9.2
(0.6)
Apr‐12
NSFOCUS Informa ti on Technology Co., Ltd.
Chi na
Technol ogy & Communica tions
Apr‐12
Shenzhen Tinno Mobil e Technol ogy Corp.
Chi na
Technol ogy & Communica tions
Ma r‐12
Reva l Hol dings , Inc.
United Sta tes
Softwa re
7 | M&A and Investment Summary December 2013
20.0
NA
NA
451.0
NA
NA
NA
75.0
47.0
(12.1)
LTM IPO Performance
Date
Initial Offering
Final Price
Stock Price at Close
Stock Price on
% Change from
Country
Price Range
Per Share
on 1st Trading Day
Dec 31, 2013
1st Trading Day
Autohome Inc.
China
$14.00‐$16.00
$17.00
$26.95, up 58%
$28.00
3.9%
Nimble Stora ge, Inc.
Uni ted Sta tes
18.00‐20.00
21.00
33.81, up 61%
35.50
5.0%
Ticker
Company Name
Dec‐13
NYSE:ATHM
Dec‐13
NYSE:NMBL
Nov‐13
NYSE:CUDA
Ba rrracuda Networks , Inc.
Uni ted Sta tes
18.00‐21.00
18.00
21.55, up 20%
39.68
84.1%
Nov‐13
NYSE:CHGG
Chegg, Inc.
Uni ted Sta tes
9.50‐11.50
12.50
9.64, down 23%
8.51
(11.7%)
15.00‐17.00
10.00
9.55, down 4.5%
11.16
16.9%
9.50‐11.50
11.22
13.35, up 19%
20.53
83.0%
Nov‐13
NYSE:MVNR
Ma veni r Sys tems , Inc.
Uni ted Sta tes
Nov‐13
Na s daqGM:GOMO
Sungy Mobi le Li mited
China
Nov‐13
NYSE:TWTR
Twi tter
Uni ted Sta tes
23.00‐25.00
26.00
44.90, up 73%
63.65
144.8%
Nov‐13
Na s daqGM:WIX
Wix.com Ltd.
Uni ted Sta tes
14.50‐16.50
16.50
16.31, down 1%
26.85
62.7%
Nov‐13
Na s daqGS:ZU
zul i ly, Inc.
Uni ted Sta tes
18.00‐20.00
22.00
37.70, up 71%
41.43
9.9%
Oct‐13
Na s daqGS:COMM
CommScope Holdi ng Compa ny Inc.
Uni ted Sta tes
18.00‐21.00
15.00
4.99, fl a t
18.93
26.3%
Oct‐13
Na s daqGS:CRTO
Cri teo SA
France
27.00‐29.00
31.00
35.39, up 15%
34.20
(3.4%)
Oct‐13
Na s daqGS:EIGI
Endura nce Interna tional Group Hol di ngs , Inc.
China
14.00‐16.00
12.00
13.95, up 16%
14.18
1.6%
Oct‐13
SEHK:484
Forgame Holdi ngs
China
Oct‐13
Na s daqGS:SFXE
SFX Entertai nment Inc.
Uni ted Sta tes
Oct‐13
NYSE:VEEV
Veeva Sys tems Inc.
Sep‐13
Na s daqGM:BNFT
Benefitfocus , Inc.
5.60‐7.09
6.58
8.70, up 32%
6.96
(19.9%)
11.00‐13.00
13.00
11.89, down 9%
12.00
0.9%
Uni ted Sta tes
12.00‐14.00
20.00
37.16, up 86%
32.10
(13.6%)
Uni ted Sta tes
21.50‐24.50
26.50
53.55, up 102%
57.74
7.8%
Sep‐13
Na s daqGS:COVS
Covi s i nt Corpora tion
Uni ted Sta tes
9.00‐11.00
10.00
12.31, up 23%
12.55
1.9%
Sep‐13
Na s daqGS:FEYE
Fi reEye, Inc.
Uni ted Sta tes
12.00‐14.00
20.00
39.40, up 97%
43.61
10.7%
Sep‐13
Na s daqGS:MONT
Monta ge Technol ogy Group Li mited
China
12.00‐14.00
10.00
12.80, up 28%
16.31
27.4%
Sep‐13
Na s daqGS:PINC
Premi er, Inc.
Uni ted Sta tes
23.00‐26.00
27.00
30.65, up 14%
36.76
19.9%
Sep‐13
Na s daqGS:FUEL
Rocket Fuel, Inc.
Uni ted Sta tes
27.00‐29.00
29.00
55.42, up 91%
61.49
11.0%
Sep‐13
NYSE:VMEM
Vi ol i n Memory, Inc.
Uni ted Sta tes
8.00‐10.00
9.00
7.20, down 20%
3.96
(45.0%)
Aug‐13
NYSE:CVT
Cvent, Inc.
Uni ted Sta tes
17.00‐19.00
21.00
32.92, up 57%
36.39
10.5%
Aug‐13
NYSE:YUME
YuMe, Inc.
Uni ted Sta tes
12.00‐14.00
9.00
9.00, fl a t
7.45
(17.2%)
Jul ‐13
Na s daqGS:SALE
Reta i lMeNot, Inc.
Uni ted Sta tes
20.00‐22.00
21.00
27.70, up 32%
28.79
3.9%
Jun‐13
NYSE:GIMO
Giga mon LLC
Uni ted Sta tes
18.00‐20.00
19.00
28.47, up 50%
28.08
(1.4%)
Jun‐13
Na s daqGS:GOGO
Gogo Inc.
Uni ted Sta tes
15.00‐17.00
17.00
16.00, down 6%
24.82
55.2%
Jun‐13
NSEI:JUSTDIAL
Jus t Dia l Li mi ted
Indi a
8.39‐9.69
9.46
10.77, up 14%
23.32
116.5%
8 | M&A and Investment Summary December 2013
LTM IPO Performance
Date
Ticker
Company Name
Country
Jun‐13
NYSE:LITB
Light in the Box
China
Initial Offering
Final Price
Stock Price at Close
Stock Price on
% Change from
Price Range
Per Share
on 1st Trading Day
Dec 31, 2013
1st Trading Day
11.61, up 22%
$8.09
(30.3%)
8.50‐10.50
$9.50
Jun‐13
NYSE:LXFT
Luxoft Holdi ng, Inc.
Swi tzerl and
16.00‐18.00
17.00
20.71, up 22%
37.98
86.4%
Jun‐13
NYSE:TXTR
Textura Corpora tion
Uni ted Sta tes
13.00‐15.00
15.00
20.35, up 36%
29.94
47.1%
Jun‐13
NYSE:TRMR
Tremor Vi deo, Inc.
Uni ted Sta tes
11.00‐13.00
10.00
8.50, down 15%
5.80
(31.8%)
May‐13
NYSE:ECOM
Cha nnelAdvi s or Corpora tion
Uni ted Sta tes
12.00‐14.00
14.00
18.44, up 32%
41.71
126.2%
May‐13
NYSE:CYNI
Cyan, Inc.
Uni ted Sta tes
10.00‐12.00
11.00
11.14, up 1%
5.29
(52.5%)
May‐13
Na s daqGS:MKTO
Ma rketo, Inc.
Uni ted Sta tes
11.00‐13.00
13.00
23.10, up 78%
37.07
60.5%
May‐13
Q
Qui nti l es Tra ns na ti ona l Holdi ngs Inc.
Uni ted Sta tes
36.00‐40.00
40.00
42.11, up 5%
46.34
10.0%
May‐13
NYSE:DATA
Ta blea u Softwa re, Inc.
Uni ted Sta tes
28.00‐30.00
31.00
50.75, up 64%
68.93
35.8%
Apr‐13
NYSE:RALY
Ra ll y Softwa re Devel opment Corp.
Uni ted Sta tes
11.00‐13.00
14.00
17.81, up 27%
19.45
9.2%
Mar‐13
NYSE:MRIN
Ma ri n Software
Uni ted Sta tes
11.00‐13.00
14.00
16.26, up 16%
10.24
(37.0%)
Mar‐13
NYSE:MODN
Model N, Inc.
Uni ted Sta tes
12.50‐14.50
15.50
18.45, up 19%
11.79
(36.1%)
Mar‐13
TSE:3182
Ois i x Inc.
Japa n
10.42‐12.51
12.51
28.73, up 30%
41.84
45.6%
Mar‐13
Na s daqCM:IPDN
Profes s i ona l Divers i ty Network LLC
Uni ted Sta tes
10.00‐12.00
8.00
7.67, down 4%
4.61
(39.9%)
Feb‐13
AIM:DGS
Digi tal Gl obe Services , Ltd.
Uni ted Sta tes
No Range
2.47
2.59, up 5%
4.02
55.1%
Feb‐13
TSE:3671
Softma x Co., Ltd
Japa n
11.44‐13.52
13.52
31.16, up 30%
28.53
(8.4%)
Feb‐13
XOOM
Xoom Corporati on
Uni ted Sta tes
13.00‐15.00
16.00
25.49, up 59%
27.37
7.4%
9 | M&A and Investment Summary December 2013
Digital Media/Commerce
Of the total $1.3 billion in value reported in the Digital Media/Commerce segment, $1 billion in venture/growth investments were reported, while another $265 million of strategic and buyout transactions were made
eCommerce and Mobile Content/Apps were the most active subsegment across all segments, with 18 and 17 transactions announced, respectively, worth a combined total of $402 million
Niche Content was the highest reported value subsegment with nine transactions announced of which seven were worth $740 million Select acquisitions: • HomeAway’s $198 million acquisition of Australia‐based Stayz Group, an online vacation rental marketplace • E.W. Scripps’ $35 million purchase of multisource video news services Newsy Select investments: • The $300 million investment co‐led by Summit Partners and TA Associates in Answers Corporation, a community‐generated Q&A search engine DIGITAL MEDIA/COMMERCE TRANSACTIONS BY SEGMENT
Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value
%
$MM
Strategic %
#
Buyout $MM
#
Venture/Growth Capital #
$MM
Mobile Content/Apps
18
28%
119.3
9%
4
‐
0
$MM ‐
14
$282.5
eCommerce
17
26%
282.5
15%
1
‐
1
‐
15
159.5
Social Media/Apps
10
15%
159.5
8%
1
‐
0
‐
9
119.3
Niche Content
8
12%
114.4
39%
4
67.0
0
‐
4
90.8
Gaming
8
12%
90.8
5%
0
‐
0
‐
8
3.5
Classifieds/Auctions/P‐to‐P
2
3%
201.5
11%
1
198.0
0
‐
1
47.4
Other*
2
3%
303.0
24%
0
0.0
0
0.0
2
3.0
65
100%
1,271.0
100%
11
265.0
1
0.0
53
1,006.0
Total
*Other includes Domain Portfolio/Marketplace, Virtual Goods, and Web Search/Portals
10 | M&A and Investment Summary December 2013
Digital Media/Commerce Public Company Valuation ($ in Millions, except stock price data) Company Name 1‐800‐Flowers.com Inc. Amazon.com Inc. AOL Inc. Autohome Inc. Baidu, Inc. Betfair Group PLC Blue Nile Inc. CafePress Inc. CDW Corporation Copart, Inc. Cupid plc CyberAgent Inc. Demand Media, Inc. DeNA Co., Ltd. eBay Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 403.4
Revenue $ 739.0
EBITDA $ 43.9
United States * United States
$5.22
‐27%
Value $ 336.0
396.44
‐2%
181,464.1
176,818.1
70,133.0
United States China
44.40
‐5%
3,415.7
3,353.6
33.24
3,455.7
3,384.5
China United Kingdom United States United States United States
‐12%
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
5.9%
4.1%
0.5x
9.2x
3,173.0
4.5%
22.5%
2.5x
55.7x
2,240.4
416.5
18.6%
3.3%
171.9
84.1
48.9%
60.2%
1.5x
8.1x
19.7x
40.3x
175.28
‐3%
61,337.5
57,384.5
4,697.8
2,111.9
45.0%
40.7%
12.2x
27.2x
17.74
‐3%
1,813.3
1,531.9
601.1
128.3
21.3%
‐5.9%
2.5x
11.9x
46.03
‐6%
589.4
542.1
440.2
15.3
3.5%
17.0%
1.2x
35.5x
6.15
‐18%
105.6
86.9
242.6
7.1
2.9%
21.3%
0.4x
12.2x
23.37
‐5%
4,018.6
7,303.7
10,656.3
699.5
6.6%
6.5%
0.7x
10.4x
United States United Kingdom
36.31
‐5%
4,558.9
4,842.2
1,087.4
329.7
30.3%
16.0%
4.5x
14.7x
1.01
‐69%
72.2
51.7
129.1
20.7
16.0%
109.5%
0.4x
2.5x
Japan United States
40.95
‐9%
2,550.8
2,271.6
1,655.9
152.5
9.2%
15.2%
1.4x
14.9x
5.69
‐42%
510.8
454.3
401.1
171.8
42.8%
10.8%
1.1x
2.6x
Japan United States
21.16
‐36%
2,740.5
2,267.9
2,082.8
788.2
37.8%
17.3%
1.1x
2.9x
53.26
‐8%
68,950.3
63,210.3
15,510.0
4,600.0
29.7%
15.2%
4.1x
13.7x
E‐Commerce China Dangdang Inc.
* China
9.42
‐23%
757.7
523.6
974.9
(49.0)
NM
24.1%
0.5x
NM
eLong Inc.
* China United States
20.53
‐14%
709.5
413.1
156.4
(17.8)
NM
38.0%
2.6x
NM
69.20
‐1%
9,020.4
8,924.8
4,594.1
640.1
13.9%
19.6%
1.9x
United States China
54.56
‐7%
138,586.4
129,833.4
6,871.0
3,264.0
47.5%
48.2%
18.9x
39.8x
6.80
‐29%
856.7
923.7
163.3
51.7
31.6%
0.0%
5.7x
17.9x
Expedia Inc. Facebook, Inc. Forgame Holdings Limited G5 Entertainment AB (publ) GameLoft SA Geeknet, Inc. Glu Mobile, Inc. Google Inc.
Sweden France United States * United States United States
13.9x
5.14
‐42%
45.2
40.0
14.3
4.3
29.7%
21.6%
2.8x
9.4x
10.70
‐7%
880.7
798.2
289.2
43.9
15.2%
21.8%
2.8x
18.2x
18.45
‐8%
122.5
81.8
130.3
2.7
2.0%
21.3%
0.6x
30.7x
3.90
‐6%
304.0
276.4
97.1
(16.8)
NM
‐7.4%
2.8x
1,105.00
‐1%
369,166.6
321,567.6
57,386.0
17,599.0
30.7%
23.8%
5.6x
18.3x 4.0x
NM
Gree, Inc.
Japan
9.94
‐30%
2,306.5
2,029.7
1,524.8
511.2
33.5%
‐9.7%
1.3x
Hollywood Media Corp.
* United States United States
1.38
‐29%
31.2
6.4
0.5
(5.9)
NM
‐22.1%
12.6x
62.05
‐5%
3,281.3
3,416.8
3,367.0
305.1
9.1%
5.0%
1.0x
11.2x
HSN, Inc. IAC/InterActiveCorp
68.42
‐3%
5,699.0
5,596.7
3,063.8
538.6
17.6%
16.4%
1.8x
10.4x
17.48
‐18%
4,350.8
5,801.6
2,341.6
805.6
34.4%
8.9%
2.5x
7.2x
1.74
‐6%
315.9
308.0
14.3
(4.9)
NM
9.0%
21.6x
NM
China Malaysia
5.99
‐37%
179.8
90.5
76.8
10.6
13.8%
20.9%
1.2x
8.5x
0.71
‐9%
450.0
414.9
53.0
23.9
45.2%
9.0%
7.8x
17.3x
China * United States
7.73
‐48%
324.3
166.6
171.9
24.0
14.0%
‐3.2%
1.0x
6.9x
15.91
‐11%
1,439.0
1,247.1
346.2
18.4
5.3%
38.2%
3.6x
67.8x
Liberty Interactive Corporation
United States
29.12
‐2%
14,802.2
24,809.2
10,990.0
2,036.0
18.5%
10.4%
2.3x
12.2x
LightInTheBox Holding Co., Ltd.
* China * United States
8.15
‐65%
399.0
297.1
278.4
4.2
1.5%
65.4%
1.1x
70.8x 133.9x
International Game Technology iProperty Group Limited Jiayuan.com International Ltd. JobStreet Corp. Bhd. Kongzhong Corp. LifeLock, Inc.
LinkedIn Corporation
United States United States * Malaysia
NM
207.42
‐19%
24,766.9
22,494.7
1,384.9
168.0
12.1%
65.6%
16.2x
* United States * United States
22.28
‐50%
715.7
620.6
505.9
NA
NA
6.4%
1.2x
NA
3.10
‐43%
18.7
25.6
12.8
(1.9)
NM
‐8.8%
2.0x
NM
Meetic S.A.
France
25.52
‐1%
598.8
575.3
223.9
47.1
21.1%
2.5%
2.6x
MeetMe, Inc.
* United States
1.81
‐52%
69.6
68.4
39.0
(4.4)
NM
‐4.9%
1.8x
Liquidity Services, Inc. Mediabistro Inc.
11 | M&A and Investment Summary December 2013
12.2x NM
Digital Media/Commerce Public Company Valuation ($ in Millions, except stock price data) Company Name Mixi, Inc. NCsoft Corporation Netflix, Inc. Nexon Co. Ltd. OpenTable, Inc. Orbitz Worldwide, Inc. Overstock.com Inc. Pacific Online Ltd. Pandora Media, Inc. PC Home Online Inc. Perform Group plc. PetMed Express, Inc. Phoenix New Media Limited priceline.com Incorporated Rakuten, Inc. Rediff.com India Limited Renren Inc. Shutterfly, Inc. Shutterstock, Inc. Sky‐mobi Limited SNAP Interactive, Inc. Spark Networks, Inc. Stamps.com Inc. Taomee Holdings Ltd. TheStreet, Inc. Twitter, Inc. U.S. Auto Parts Network, Inc. United Online, Inc. ValueVision Media Inc. Vipshop Holdings Limited Vitacost.com, Inc. WebMD Health Corp. XO Group Inc. Yahoo! Inc. Yandex N.V.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 1,025.41
Revenue $ 99.81
EBITDA $ 10.68
73.66
‐15%
Value $ 1,142.56
224.50
‐6%
4,477.4
3,906.7
771.7
* United States Japan
363.10
‐7%
21,516.5
20,881.5
9.30
‐29%
4,085.3
United States United States
79.19
‐9%
1,842.8
7.15
‐46%
773.7
United States China
28.62
‐20%
680.4
0.47
‐7%
517.4
472.7
* United States Taiwan
27.59
‐14%
5,359.5
4,911.7
7.77
‐6%
639.2
543.0
* Japan South Korea
United Kingdom United States China United States Japan * India * China United States
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA 96.0x
10.7%
‐30.4%
10.3x
247.0
32.0%
36.3%
5.1x
15.8x
4,144.6
213.2
5.1%
17.1%
5.0x
97.9x
3,596.2
1,547.0
766.5
49.5%
52.3%
2.3x
4.7x
1,740.1
180.7
56.6
31.3%
16.0%
9.6x
30.8x
1,061.0
839.3
118.2
14.1%
9.5%
1.3x
9.0x
595.5
1,248.7
29.5
2.4%
16.6%
0.5x
20.2x
123.5
50.5
40.9%
12.1%
3.8x
9.4x
588.3
(42.0)
NM
53.5%
8.3x
535.8
24.1
4.5%
8.6%
1.0x
22.5x 18.7x
NM
3.62
‐64%
950.3
992.1
268.5
53.1
19.8%
40.8%
3.7x
16.35
‐8%
314.7
263.3
235.4
29.5
12.5%
0.8%
1.1x
8.9x
10.20
‐24%
785.7
580.9
216.7
36.5
16.9%
21.8%
2.7x
15.9x
1,132.68
‐6%
58,251.5
53,973.9
6,442.8
2,412.7
37.4%
27.3%
8.4x
22.4x
14.96
‐4%
19,706.4
19,619.3
5,131.7
1,211.2
23.6%
20.2%
3.8x
16.2x
2.51
‐34%
69.3
49.2
16.2
(6.8)
NM
‐4.4%
3.0x
3.19
‐31%
1,208.4
299.9
192.6
(104.3)
NM
20.3%
1.6x
49.03
‐18%
1,864.9
1,772.0
724.6
79.4
11.0%
31.1%
2.4x
22.3x
NM NM
* United States China
84.60
‐1%
2,961.3
2,765.8
216.6
44.7
20.6%
39.6%
12.8x
61.8x
4.05
‐31%
127.6
29.5
89.8
7.7
8.5%
‐14.0%
0.3x
3.8x
* United States * United States
0.45
‐65%
17.5
16.0
13.6
(4.4)
NM
‐34.7%
1.2x
NM
6.45
‐30%
154.8
137.6
68.5
(9.1)
NM
17.4%
2.0x
United States China
41.77
‐15%
672.5
599.0
125.5
34.3
27.3%
11.3%
4.8x
17.5x
6.34
‐9%
233.2
117.1
44.9
5.0
11.0%
8.7%
2.6x
23.6x
* United States * United States
2.25
‐12%
76.4
27.2
53.5
(1.9)
NM
4.5%
0.5x
69.00
‐8%
37,584.1
37,450.4
534.5
(56.9)
NM
0.0%
70.1x
2.41
‐24%
80.2
97.2
257.9
1.7
0.7%
‐19.0%
0.4x
13.40
‐78%
177.9
297.1
862.8
87.8
10.2%
‐0.8%
0.3x
3.4x
6.80
‐4%
338.5
347.6
624.7
14.1
2.3%
12.2%
0.6x
24.7x
85.10
‐7%
4,736.4
4,254.7
1,345.3
36.6
2.7%
170.3%
3.2x
116.3x
5.78
‐39%
194.5
175.2
370.5
(6.7)
NM
18.3%
0.5x
39.48
‐3%
1,774.4
1,698.3
501.8
61.4
12.2%
2.9%
3.4x
* United States United States United States * China * United States United States United States United States Netherlands
NM
NM NM 56.4x
NM 27.7x
14.97
‐5%
370.3
284.1
133.4
24.0
18.0%
4.3%
2.1x
11.8x
40.12
‐2%
40,699.4
38,967.3
4,760.4
1,186.8
24.9%
‐4.1%
8.2x
32.8x 28.3x
42.90
‐2%
13,979.1
13,610.7
1,118.8
481.3
43.0%
37.3%
12.2x
58.02
‐1%
3,203.0
2,898.3
241.4
59.3
24.5%
121.9%
12.0x
48.9x
zulily, Inc.
China United States
38.65
‐14%
4,717.8
4,597.2
567.2
7.6
5.2x
30.0x
Zynga, Inc.
United States
3.97
‐13%
3,237.7
2,139.5
1,008.1
143.0
2.1x
15.0x
YY Inc.
1.3% 14.2%
Adjusted Weighted Average
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (22.5x) and EBITDA multiples that are 1.0 standard deviations above the mean (53.6x)
12 | M&A and Investment Summary December 2013
0.0% ‐21.3%
7.4x
22.8x
Digital Advertising
There were a total of 28 transactions announced (10 acquisitions and 18 investments) in the Digital Advertising segment, worth a total of $1.4 billion in aggregate reported value
Select acquisitions: • Dealertrack Technologies’ $1 billion acquisition of Dealer.com, which offers a suite of Web‐based marketing solutions • Blinkx’ $65 million acquisition of mobile video ad platform Rhythm NewMedia, at a reported valuation of 2.6x revenue
Select investments:
• Ctrip’s purchase of a 20 percent stake of a China‐based provider of an online car rental services for consumer and corporate clients, eHI Autoservices for $100 million
• Telstra Ventures’ $43 million investment in Ooyala, a provider of video streaming, analytics, and monetization solutions • Vulcan Capital’s $30 million investment in TrueCar, a publisher of real‐time new and used vehicle transaction data DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT
Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value
%
$MM
Strategic %
#
Buyout $MM
#
$MM
0
‐
5
$81.5
65.0
0
‐
2
13.5
‐
0
‐
3
51.5
1
‐
0
‐
2
13.5
Digital Video
8
29%
$81.5
6%
3
‐
Mobile Marketing
4
14%
78.5
6%
2
Vertical Search
4
14%
51.5
4%
1
Ad Networks/Exchanges
3
11%
13.5
1%
#
Venture/Growth Capital $MM
Comparison Shopping
3
11%
108.0
8%
1
100.0
0
‐
2
8.0
Local Search
3
11%
41.3
3%
0
‐
0
‐
3
41.3
Affiliate/CPA Network
1
4%
3.0
0%
1
3.0
0
‐
0
‐
Online Lead Generation
1
4%
10.0
1%
0
‐
0
‐
1
10.0
Search Marketing
1
4%
1,000.0
72%
1
1,000.0
0
‐
0
‐
28
100%
1,387.3
100%
10
18
219.3
Total
13 | M&A and Investment Summary December 2013
1,168.0
0
0.0
Digital Advertising Public Company Valuation ($ in Millions, except stock price Company Name Angie's List, Inc. Autobytel Inc. Bankrate, Inc. Blinkx plc Blucora, Inc. Constant Contact, Inc. Ctrip.com International Ltd. Demand Media, Inc. Dice Holdings, Inc. Digital Globe Services Inc. eHealth, Inc. Google Inc. Groupon, Inc. Hi‐Media S.A. HomeAway, Inc. IAC/InterActiveCorp InternetQ PLC LeGuide.com S.A. MakeMyTrip Limited Millennial Media Inc. Monster Worldwide, Inc. Move, Inc. Opera Software ASA OPT, Inc. Pacific Online Ltd. QuinStreet, Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 715.9
Revenue $ 223.1
EBITDA $ (29.0)
United States United States
$13.07
‐54%
Value $ 763.6
14.49
‐9%
129.1
121.0
74.6
United States United States
17.33
‐25%
1,758.5
1,864.0
3.48
‐10%
1,387.9
1,317.5
United States United States
28.50
‐5%
1,174.1
30.24
‐4%
China United States United States
45.53 5.69 7.34
United States United States
3.94
United States United States
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
NM
62.7%
3.2x
4.1
5.4%
12.8%
1.6x
29.8x
NM
428.4
93.5
21.8%
‐10.3%
4.4x
19.9x
227.5
31.8
14.0%
49.9%
5.8x
41.4x
1,171.5
504.1
90.1
17.9%
34.0%
2.3x
13.0x
927.2
820.0
276.8
23.4
8.5%
13.7%
3.0x
35.0x
‐25%
5,908.4
5,231.8
824.6
143.5
17.4%
26.7%
6.3x
36.5x
‐42%
510.8
454.3
401.1
63.2
15.8%
10.8%
1.1x
7.2x
‐30%
413.5
428.8
207.8
64.8
31.2%
9.4%
2.1x
6.6x
‐15%
117.6
113.3
25.5
3.4
13.4%
27.8%
4.4x
33.0x 43.4x
48.61
‐1%
905.2
807.4
170.3
18.6
10.9%
11.1%
4.7x
1,105.00
‐1%
369,166.6
321,567.6
57,386.0
17,599.0
30.7%
23.8%
5.6x
18.3x
12.08
‐5%
8,070.9
6,929.0
2,443.5
125.3
5.1%
11.7%
2.8x
55.3x
2.68
‐12%
119.8
138.1
243.1
15.0
6.2%
‐12.3%
0.6x
9.2x
40.45
‐3%
3,693.0
3,349.3
327.8
59.2
18.0%
22.6%
10.2x
56.6x
68.42
‐3%
5,699.0
5,596.7
3,063.8
538.6
17.6%
16.4%
1.8x
10.4x
4.93
‐18%
191.5
184.4
108.7
10.8
9.9%
36.9%
1.7x
17.1x 9.7x
France United States United States United Kingdom France India United States United States United States Norway Japan China United States
46.59
‐2%
166.2
130.8
62.6
13.5
21.6%
41.3%
2.1x
20.39
‐4%
766.7
704.6
243.6
(22.1)
NM
15.7%
2.9x
7.50
‐49%
796.6
675.4
220.5
(1.9)
NM
42.9%
3.1x
7.02
‐4%
736.2
838.2
820.1
126.0
15.4%
‐10.0%
1.0x
6.7x
15.75
‐14%
615.1
583.1
223.3
15.3
6.8%
15.2%
2.6x
38.2x
13.72
‐1%
1,815.3
1,746.7
271.3
75.6
27.9%
36.5%
6.4x
23.1x
9.56
‐23%
281.7
184.1
764.7
27.1
3.5%
‐0.1%
0.2x
6.8x
0.47
‐7%
517.4
472.7
123.5
50.5
40.9%
12.1%
3.8x
9.4x
8.83
‐9%
383.2
346.2
303.4
31.0
10.2%
‐12.8%
1.1x
11.2x
NM NM
ReachLocal, Inc.
United States
12.80
‐26%
355.6
270.1
502.3
9.6
1.9%
15.5%
0.5x
28.1x
Responsys, Inc.
* United States United States
27.60
‐1%
1,430.8
1,323.5
194.3
13.3
6.9%
25.1%
6.8x
99.2x
28.80
‐27%
1,513.7
1,420.3
182.1
62.9
34.5%
0.0%
7.8x
22.6x
* United Kingdom United States
45.20
‐1%
4,393.7
4,383.1
195.5
136.3
69.7%
19.2%
22.4x
32.1x
20.27
‐24%
2,041.8
2,741.2
605.6
192.9
31.9%
‐7.6%
4.5x
14.2x
Japan United States Sweden
12.47
‐3%
314.5
266.0
468.6
19.3
4.1%
11.2%
0.6x
13.8x
13.30
‐7%
1,621.8
766.4
388.8
25.9
6.7%
38.1%
2.0x
29.6x
2.88
‐21%
122.1
93.5
321.4
9.7
3.0%
‐15.4%
0.3x
9.6x
United States United States
21.34
‐37%
327.8
249.4
157.8
27.0
17.1%
5.7%
1.6x
9.2x
32.74
‐2%
364.7
277.0
126.8
6.7
5.3%
97.6%
2.2x
41.1x
RetailMeNot, Inc. Rightmove plc Rovi Corporation Septeni Holdings Co., Ltd. TiVo Inc. TradeDoubler AB Travelzoo Inc. Tree.Com, Inc. Tremor Video, Inc. TripAdvisor Inc.
United States United States
14 | M&A and Investment Summary December 2013
5.49
‐50%
272.6
176.4
128.0
(2.5)
NM
0.0%
1.4x
80.92
‐11%
11,495.7
11,439.5
901.4
326.8
36.3%
23.2%
12.7x
NM 35.0x
Digital Advertising Public Company Valuation ($ in Millions, except stock price Company Name Trulia, Inc. ValueClick, Inc.
Headquarters
Stock Price 01/05/14
United States United States
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 1,258.4
Revenue $ 114.6
EBITDA $ (3.0)
$34.69
‐34%
Value $ 1,293.8
22.82
‐29%
1,523.4
1,663.9
684.3
224.1
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
NM
93.3%
11.0x
32.7%
24.7%
2.4x
EV/EBITDA NM 7.4x
Velti Plc
Ireland
0.06
‐99%
5.4
17.8
232.1
(136.5)
NM
‐1.6%
0.1x
Vocus Inc.
* United States United States
11.35
‐37%
239.9
282.8
186.6
1.1
0.6%
21.0%
1.5x
3.50
‐53%
16.3
14.5
88.8
20.1
22.6%
156.4%
0.2x
0.7x
United States United States
31.35
‐7%
1,494.0
2,077.2
472.6
91.0
19.2%
27.8%
4.4x
22.8x 32.8x
Voltari Corporation Web.com Group, Inc. Yahoo! Inc.
NM 248.3x
40.12
‐2%
40,699.4
38,967.3
4,760.4
1,186.8
24.9%
‐4.1%
8.2x
* United States Netherlands
67.66
‐10%
4,703.1
4,601.9
203.5
(0.7)
NM
67.7%
22.6x
42.90
‐2%
13,979.1
13,610.7
1,118.8
481.3
43.0%
37.3%
12.2x
28.3x
* China United States
31.50
‐2%
5,263.9
4,740.7
451.4
24.7
5.5%
88.1%
10.5x
192.2x
YuMe, Inc.
7.43
‐38%
237.2
174.3
142.6
7.1
5.0%
0.0%
1.2x
24.5x
Zillow, Inc.
* United States
81.88
‐21%
3,188.9
2,823.8
173.5
(9.5)
NM
69.5%
16.3x
Yelp, Inc. Yandex N.V. Youku Tudou Inc.
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (15.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (80.3x)
15 | M&A and Investment Summary December 2013
6.1x
NM
NM 21.5x
Marketing Technology
Analytics & Reporting was the most active Marketing Technology subsegment with 13 transactions announced, worth $475 million in aggregate reported, while Email/Messaging Software was the highest reported value subsegment due to Oracle’s $1.5 billion purchase of Responsys.
Select acquisitions: • Apple’s $200 million acquisition of Topsy Labs, a social media analytics firm that tracks trending topics social media networks • Tribune Company’s $170 million purchase of Gracenote, a company that maintains an Internet‐accessible database
Select investments:
• Atomico’s $54 million invesment in Knewton, a learning platform that customizes educational content MARKETING TECHNOLOGY TRANSACTIONS BY SEGMENT
Transactions # Analytics & Reporting BI Tools
BUYER/INVESTOR BREAKDOWN
Reported Value
%
Strategic
Buyout
Venture/Growth Capital
$MM
%
#
$MM
#
#
$MM
13
21%
$474.8
19%
6
$413.5
0
$MM ‐
7
$61.3
7
11%
119.5
5%
0
‐
1
‐
6
119.5
Content Management
7
11%
72.9
3%
2
12.7
1
‐
4
60.2
Mobile Technology
7
11%
51.5
2%
1
‐
0
‐
6
51.5
Online Targeting/Optimization
6
10%
78.1
3%
2
20.0
0
‐
4
58.1
CRM
5
8%
26.7
1%
2
11.5
0
‐
3
15.2
Social Technology
5
8%
25.3
1%
0
‐
0
‐
5
25.3
Commerce Management
3
5%
11.0
0%
0
‐
1
‐
2
11.0
Other* Total
9
15%
1,675.7
66%
6
1,670.0
0
62
100%
2,535.5
100%
19
2,127.7
3
*Other includes Content Delivery Network, Email/Messaging Software, Media Management System, Search & Discovery, and Teleservices/eServices
16 | M&A and Investment Summary December 2013
‐ 0.0
3
5.7
40
407.8
Marketing Technology Public Company Valuation ($ in Millions, except stock price data) Company Name Accelrys Inc. Actuate Corporation Adobe Systems Inc. Bazaarvoice, Inc. Bitauto Holdings Limited Blackbaud Inc. Brightcove, Inc. ChannelAdvisor Corporation ChinaCache International Holdings Constant Contact, Inc. Covisint Corporation Criteo SA Cvent, Inc. Dealertrack Technologies, Inc. Demandware, Inc. Digital Generation, Inc. Digital River Inc. E2open, Inc. eBay Inc. Endurance International Group Informatica Corporation Infosystems S.A. Interactive Intelligence Group Inc. IBM Corporation Jive Software, Inc. LivePerson Inc. Marin Software Incorporated Marketo, Inc. Mercadolibre, Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 429.8
Revenue $ 166.2
EBITDA $ 11.0
United States United States
$9.58
‐4%
Value $ 533.3
7.69
‐7%
366.3
295.3
137.7
United States United States China
59.16
‐3%
29,573.3
27,913.5
7.85
‐32%
595.4
520.6
30.68
‐12%
1,273.1
1,169.2
United States United States United States
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
6.6%
5.2%
2.6x
38.9x
16.1
11.7%
‐0.6%
2.1x
18.3x
4,055.2
769.1
19.0%
‐7.9%
6.9x
36.3x
176.1
(35.2)
NM
32.1%
3.0x
214.1
41.8
19.5%
41.0%
5.5x
28.0x 19.6x
NM
37.88
‐10%
1,683.7
1,841.2
489.0
93.8
19.2%
15.8%
3.8x
14.57
‐10%
419.2
385.1
104.5
(5.8)
NM
27.2%
3.7x
NM
41.00
‐7%
929.6
852.2
63.5
(5.2)
NM
26.0%
13.4x
NM
China United States United States
10.99
0%
257.2
213.6
161.5
0.1
0.1%
28.7%
1.3x
30.24
‐4%
927.2
820.0
276.8
23.4
8.5%
13.7%
3.0x
12.63
‐15%
471.9
470.8
98.1
(19.0)
NM
20.6%
4.8x
France * United States
32.42
‐28%
1,792.8
1,755.6
534.1
18.5
3.5%
0.0%
3.3x
95.0x
NM 35.0x NM
37.54
‐19%
1,509.4
1,351.6
104.0
5.8
5.6%
0.0%
13.0x
234.0x
United States * United States
49.25
‐2%
2,161.9
2,165.6
457.2
62.9
13.8%
20.8%
4.7x
34.4x
64.40
‐1%
2,228.4
2,118.2
94.5
(15.0)
NM
31.7%
22.4x
United States United States
13.07
‐7%
365.8
691.9
382.0
104.6
27.4%
‐2.4%
1.8x
6.6x
18.51
‐9%
618.8
342.6
402.3
22.5
5.6%
4.7%
0.9x
15.2x
United States United States
24.16
‐8%
640.4
627.8
70.2
(12.3)
NM
0.0%
8.9x
53.26
‐8%
68,950.3
63,210.3
15,510.0
4,600.0
29.7%
15.2%
4.1x
13.7x
United States United States
13.95
‐6%
1,771.2
2,936.6
500.9
78.4
15.7%
0.0%
5.9x
37.4x
40.82
‐3%
4,429.5
3,808.9
906.9
169.4
18.7%
12.8%
4.2x
22.5x
Poland United States
0.85
‐46%
3.5
3.1
2.8
1.3
46.4%
32.5%
1.1x
2.4x
66.64
‐7%
1,347.8
1,264.3
298.0
23.7
8.0%
32.7%
4.2x
53.2x
United States United States
186.64
‐14%
202,663.8
228,701.8
101,356.0
25,939.0
25.6%
‐3.2%
2.3x
8.8x
11.12
‐40%
769.9
662.9
139.0
(54.1)
NM
34.1%
4.8x
United States United States
14.64
‐4%
792.5
715.1
173.4
9.4
5.4%
14.5%
4.1x
* United States Argentina
NM
NM
NM 76.5x
10.35
‐48%
337.7
233.1
72.5
(28.4)
NM
34.5%
3.2x
41.22
‐1%
1,590.0
1,456.9
84.6
(36.2)
NM
0.0%
17.2x
103.93
‐29%
4,588.8
4,392.3
441.7
151.7
34.3%
24.0%
9.9x
29.0x 30.5x
NM NM
MicroStrategy Inc.
United States
123.26
‐5%
1,393.0
1,049.0
594.9
34.4
5.8%
4.4%
1.8x
NetSuite Inc.
* United States United States
101.45
‐11%
7,576.7
7,373.1
384.5
(31.3)
NM
33.5%
19.2x
15.34
‐38%
4,861.7
6,369.0
1,855.3
239.7
12.9%
12.3%
3.4x
26.6x
Canada Norway United States
92.71
‐1%
5,478.1
5,545.0
1,361.6
415.1
30.5%
9.3%
4.1x
13.4x
13.72
‐1%
1,815.3
1,746.7
271.3
75.6
27.9%
36.5%
6.4x
23.1x
37.62
‐2%
169,192.5
156,862.5
37,552.0
16,289.0
43.4%
0.9%
4.2x
9.6x
United States United States
23.85
‐1%
4,817.5
7,985.0
4,842.7
933.0
19.3%
18.6%
1.6x
8.6x
40.00
‐2%
1,125.0
1,034.2
138.7
9.2
6.7%
24.6%
7.5x
112.1x 15.5x
Nuance Communications, Inc. Open Text Corporation Opera Software ASA Oracle Corporation Pitney Bowes Inc. PROS Holdings, Inc. PTC Inc.
NM
United States United States
34.76
‐2%
4,117.0
4,133.2
1,293.5
266.0
20.6%
3.0%
3.2x
Qlik Technologies, Inc.
25.60
‐32%
2,272.1
2,036.9
446.1
4.3
1.0%
24.2%
4.6x
NM
RealNetworks Inc.
United States
7.54
‐16%
269.4
51.0
222.9
(20.7)
NM
‐18.0%
0.2x
NM
17 | M&A and Investment Summary December 2013
Marketing Technology Public Company Valuation ($ in Millions, except stock price data) Company Name
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 1,323.5
Revenue $ 194.3
EBITDA $ 13.3
$27.60
‐1%
Value $ 1,430.8
59.36
‐13%
1,948.3
1,849.8
195.1
United States United Kingdom
20.27
‐24%
2,041.8
2,741.2
605.6
6.58
‐2%
7,220.3
7,811.3
United States Germany
55.12
‐6%
33,237.4
34,991.6
84.23
‐5%
100,532.1
103,318.1
China China
4.05
‐31%
127.6
21.32
‐9%
689.8
Synchronoss Technologies, Inc.
United States
30.18
‐23%
Tableau Software, Inc.
* United States United States
68.61
‐12%
45.36
‐35%
Responsys, Inc. Rocket Fuel Inc. Rovi Corporation Sage Group plc Salesforce.com, Inc SAP AG Sky‐mobi Limited Sungy Mobile Limited
Teradata Corporation TIBCO Software Inc. Verint Systems Inc. Vocus Inc. Weborama Wix.com ltd
United States United States
United States United States * United States France Israel
LTM Margin
LTM
EBITDA
Rev Growth
EV/EBITDA 99.2x
6.9%
25.1%
6.8x
(15.1)
NM
0.0%
9.5x
192.9
31.9%
‐7.6%
4.5x
14.2x
2,228.0
646.5
29.0%
2.7%
3.5x
12.1x
3,760.4
(19.4)
NM
32.1%
9.3x
22,646.0
7,921.8
35.0%
6.6%
4.6x
29.5
89.8
7.7
8.5%
‐14.0%
0.3x
3.8x
670.7
47.5
14.1
29.8%
0.0%
14.1x
47.5x
1,181.8
1,146.1
325.0
65.6
20.2%
23.7%
3.5x
17.5x
4,058.5
3,832.1
192.8
(2.1)
NM
0.0%
19.9x
7,411.8
6,804.8
2,663.0
594.0
22.3%
2.5%
2.6x
11.5x 18.6x
NM
NM 13.0x
NM
23.26
‐14%
3,816.8
3,610.9
1,070.0
193.7
18.1%
4.4%
3.4x
42.41
‐2%
2,267.0
2,543.2
880.5
177.0
20.1%
7.0%
2.9x
14.4x
11.35
‐37%
239.9
282.8
186.6
1.1
0.6%
21.0%
1.5x
248.3x
12.92
‐43%
45.0
41.7
35.9
3.7
10.3%
3.8%
1.2x
11.2x
25.03
‐13%
916.1
908.5
68.8
(19.6)
NM
0.0%
13.2x
Adjusted Weighted Average
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (16.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (94.7x)
18 | M&A and Investment Summary December 2013
LTM Multiples EV/Rev
4.1x
NM 12.7x
Agency & Marketing Services
There were 13 transactions announced in the Agency & Marketing Services segment In December. Digital Agency and Social Agency were the most active subsegments each with four transactions announced
Select acquisitions: • Silver Lake Partners’ and talent agency William Morris Endeavor Entertainment’s $2.3 billion purchase of global sports, fashion, and media business IMG Worldwide, reportedly valued at 13.0x EBITDA
• LX Ventures’ $10 million acquisition of Canada‐based company Strutta Media, a provider of a social media platform that enables brands to create and manage online campaigns
AGENCY & MARKETING SERVICES TRANSACTIONS BY SEGMENT
Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value
%
$MM
Strategic %
#
Buyout $MM
#
Venture/Growth Capital $MM
#
$MM
Digital Agency
4
31%
$12.0
1%
2
‐
0
‐
2
$12.0
Social Agency
4
31%
9.6
0%
2
9.6
0
‐
2
‐
Design Agency
1
8%
0.0
0%
1
‐
0
‐
0
‐
DM Agency
1
8%
4.0
0%
1
4.0
0
‐
0
‐
Healthcare Agency
1
8%
‐
0%
1
‐
0
‐
0
‐
Media Planning/Buying
1
8%
40.0
2%
0
‐
0
‐
1
40.0
‐
0
‐
5
52.0
Specialty Agency Total
1
8%
2,300.0
97%
1
2,300.0
0
13
100%
2,365.6
0%
8
2,313.6
0
19 | M&A and Investment Summary December 2013
0.0
Agency Public Company Valuation ($ in Millions, except stock price data) Stock Price 01/05/14
Equity
Ent.
‐3%
Value $ 100.8
Value $ 119.5
Revenue $ 219.0
EBITDA $ 12.6
4.30
‐27%
172.1
92.2
168.8
5.68
‐1%
550.4
577.5
481.5
Company Name
Headquarters
Cello Group Plc
United Kingdom China
$1.22
* United Kingdom United Kingdom
Charm Communications Inc. Chime Communications plc Creston plc Dentsu Inc. Enero Group Limited Havas Huntsworth plc M&C Saatchi plc MDC Partners Inc. Next Fifteen Communications Group plc Omnicom Group Inc. OPT, Inc. Porta Communications Plc Publicis Groupe SA Sapient Corp.
Japan Australia
Chg % From 52WK High
LTM
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA 9.5x
5.8%
11.9%
0.5x
(2.5)
NM
‐15.1%
0.5x
14.1
2.9%
‐0.7%
1.2x
NM 41.0x
1.55
‐14%
92.3
89.5
119.3
17.9
15.0%
‐2.5%
0.8x
5.0x
41.14
‐2%
11,864.2
13,764.1
21,426.1
943.5
4.4%
7.8%
0.6x
14.6x
0.58
‐17%
50.0
35.3
227.1
0.3
0.1%
‐26.0%
0.2x
France United Kingdom
8.21
‐5%
3,311.0
3,947.9
2,321.7
376.1
16.2%
4.5%
1.7x
10.5x
1.11
‐4%
349.7
463.1
264.0
46.0
17.4%
‐1.5%
1.8x
10.1x
United Kingdom United States
5.40
‐6%
368.7
340.2
264.1
30.6
11.6%
5.9%
1.3x
11.1x
25.65
‐4%
1,211.1
1,858.7
1,141.3
108.4
9.5%
11.2%
1.6x
17.1x
1.42
‐25%
85.2
91.8
145.9
14.5
9.9%
4.9%
0.6x
6.3x
73.78
‐1%
18,988.1
22,170.1
14,471.0
2,135.3
14.8%
2.4%
1.5x
10.4x 6.8x
United Kingdom United States Japan United Kingdom France
NM
9.56
‐23%
281.7
184.1
764.7
27.1
3.5%
‐0.1%
0.2x
0.22
‐20%
34.9
41.0
23.1
(2.8)
NM
531.3%
1.8x
90.64
‐2%
19,327.3
20,266.4
8,939.9
1,732.2
19.4%
10.9%
2.3x
11.7x
NM
United States United States
17.16
‐4%
2,405.7
2,126.5
1,223.9
158.1
12.9%
12.3%
1.7x
13.4x
The Interpublic Group of Companies, Inc.
17.62
‐1%
7,334.2
8,481.2
7,062.9
840.6
11.9%
1.4%
1.2x
10.1x
WPP plc
United Kingdom
22.70
‐1%
30,583.2
35,483.2
16,305.5
2,780.6
17.1%
4.4%
2.2x
12.8x
1.7x
12.0x
Adjusted Weighted Average
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.1x)
20 | M&A and Investment Summary December 2013
Marketing Services Public Company Valuation ($ in Millions, except stock price data) Company Name Acxiom Corporation Aimia Inc. Alliance Data Systems Corporation CSG Systems International Inc. Data Group Ltd. DST Systems Inc. Fair Isaac Corporation
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent. Value $ 2,750.2
Revenue $ 1,092.7
LTM EBITDA $ 190.3
United States Canada
$36.25
‐6%
Value $ 2,723.0
18.21
‐1%
3,148.8
3,347.2
1,617.6
* United States United States
263.70
‐1%
12,845.6
16,907.3
29.18
‐2%
926.6
Canada United States
0.51
‐79%
11.9
90.18
‐2%
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA 14.5x
17.4%
‐2.2%
2.5x
(383.3)
NM
‐21.9%
2.1x
4,149.8
1,243.8
30.0%
18.0%
4.1x
13.6x
1,000.5
750.9
124.7
16.6%
0.6%
1.3x
8.0x
107.5
312.7
25.6
8.2%
‐5.2%
0.3x
4.2x
3,802.9
4,256.0
2,649.9
409.5
15.5%
4.3%
1.6x
10.4x 12.7x
NM
United States United States
61.59
‐3%
2,129.0
2,515.8
743.4
198.3
26.7%
9.9%
3.4x
7.85
‐22%
491.0
515.3
751.9
79.9
10.6%
23.5%
0.7x
6.4x
France United States
6.45
‐16%
67.0
28.7
173.4
14.5
8.4%
‐0.7%
0.2x
2.0x
2.78
‐8%
35.4
14.7
26.2
3.0
11.5%
37.5%
0.6x
4.9x
Brazil United States
12.26
‐40%
1,986.1
1,577.1
752.4
124.4
16.5%
16.0%
2.1x
12.7x
5.83
‐28%
88.4
37.3
150.1
1.5
1.0%
15.8%
0.2x
24.8x
25.56
‐5%
392.0
342.7
174.0
3.3
1.9%
32.2%
2.0x
103.0x
Valassis Communications Inc.
* Canada United States
34.13
‐2%
1,302.5
1,763.9
2,047.2
257.7
12.6%
‐6.0%
0.9x
6.8x
Viad Corp
United States
27.42
‐5%
557.4
448.4
973.5
56.7
5.8%
‐4.6%
0.5x
7.9x
2.0x
12.3x
Harte‐Hanks Inc. High Co. SA Insignia Systems Inc. Multiplus SA PDI, Inc. Points International Ltd.
Adjusted Weighted Average
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (42.1x)
21 | M&A and Investment Summary December 2013
Traditional Media
There were 11 transactions announced in the Traditional Media segment in December, ten of which were strategic acquisitions Select acquisitions: • Harland Clarke’s pending $1.8 billion acquisition of marketing services company Valassis Communications, at a reported valuation of more than $1.8 billion or 0.9x revenue
• Meredith Corporation’s $408 million purchase of three television stations from Gannett • Onex Partners‐backed Emerald Expositions’ pending $335 million purchase of tradeshow company George Little Management from Providence Equity Partners, at a valuation of 4.2x revenue and 11.2x EBITDA
• Nexstar Broadcasting group and Mission Broadcasting’s $37.5 million acquisiton of six television stations from Gray Television Group and Excalibur Broadcasting
TRADTIONAL MEDIA TRANSACTIONS BY SEGMENT
Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value
%
Strategic
Buyout
$MM
%
#
$MM
#
Venture/Growth Capital $MM
#
$MM
Broadcast Television
4
36%
$453.2
18%
4
$453.2
0
‐
0
‐
B‐to‐B Media
2
18%
335.0
13%
2
335.0
0
‐
0
‐
Radio
2
18%
‐
0%
2
‐
0
‐
0
‐
Digital Place‐Based Media
1
9%
‐
0%
0
‐
0
‐
1
‐
Entertainment Media
1
9%
‐
0%
1
‐
0
‐
0
‐
Shopper/Trader/Coupons
1
9%
1,800.0
70%
1
1,800.0
0
‐
0
‐
11
100%
2,588.2
0%
10
2,588.2
0
0.0
1
0.0
Total
22 | M&A and Investment Summary December 2013
Traditional Media Public Company Valuation ($ in Millions, except stock price data) Large Cap Diversified Media Company Name CBS Corporation Discovery Communications, Inc. News Corporation Time Warner Inc. Twenty‐First Century Fox, Inc. Viacom, Inc. The Walt Disney Company
Headquarters United States * United States United States United States * United States United States United States
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 43,967.7
Revenue $ 15,071.0
EBITDA $ 3,675.0
36,674.7
5,198.0
2,184.0
$63.14
‐1%
Value $ 37,887.7
88.58
‐2%
30,690.7
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples
24.4%
11.1%
2.9x
12.0x
42.0%
18.3%
7.1x
16.8x
EV/EBITDA
17.82
‐2%
10,315.1
7,765.1
8,830.0
618.0
7.0%
2.4%
0.9x
12.6x
68.67
‐3%
62,127.3
79,724.3
29,394.0
7,927.0
27.0%
2.2%
2.7x
10.1x
35.20
‐2%
79,888.4
94,351.4
28,733.0
6,169.0
21.5%
24.4%
3.3x
15.3x
86.60
‐1%
38,647.0
48,237.0
13,794.0
4,179.0
30.3%
‐0.7%
3.5x
11.5x
76.11
‐1%
133,746.6
147,098.6
45,041.0
11,742.0
26.1%
6.5%
3.3x
12.5x
Adjusted Weighted Average
3.4x
11.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (15.3x) B‐to‐B Media Company Name Euromoney Institutional Investor PLC Global Sources Ltd. Informa plc TechTarget, Inc. The Dolan Company UBM plc
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 2,795.3
Revenue $ 655.2
EBITDA $ 199.4
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples EV/EBITDA
30.4%
2.7%
4.3x
14.0x
$21.88
‐4%
Value $ 2,765.5
8.16
‐4%
280.7
146.8
198.1
42.0
21.2%
‐14.6%
0.7x
3.5x
Switzerland * United States
9.21
‐3%
5,564.4
7,080.9
1,879.5
568.9
30.3%
2.8%
3.8x
12.4x
6.92
‐3%
219.5
177.4
90.1
6.0
6.6%
‐13.0%
2.0x
29.8x
United States United Kingdom
0.55
‐87%
16.8
142.2
255.4
33.2
13.0%
38.9%
0.6x
4.3x
10.90
‐17%
2,645.7
3,474.0
1,203.3
278.6
23.2%
12.2%
2.9x
12.5x
United Kingdom Hong Kong
Adjusted Weighted Average
3.6x
12.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (22.2x) Radio Broadcasting Company Name
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 304.8
Revenue $ 105.1
EBITDA $ 29.9
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples
28.4%
7.2%
2.9x
10.2x
29.2%
0.7%
3.3x
11.3x 12.1x
United States United States
$9.02
‐10%
Value $ 207.0
7.20
0%
631.0
20,598.1
6,245.0
1,820.6
United States United States
7.98
‐2%
1,637.4
4,264.8
1,087.8
352.9
32.4%
1.3%
3.9x
2.97
‐18%
124.1
303.2
199.7
35.1
17.6%
6.3%
1.5x
8.6x
United States United States
10.93
‐1%
408.8
927.9
380.1
102.0
26.8%
‐0.5%
2.4x
9.1x
9.22
‐6%
469.9
689.2
418.1
87.1
20.8%
12.8%
1.6x
7.9x
United States United States
5.10
‐5%
241.9
1,227.4
443.0
161.9
36.5%
6.4%
2.8x
7.6x
9.05
‐11%
225.5
518.0
234.8
49.8
21.2%
4.0%
2.2x
10.4x
3.57
‐15%
21,903.8
24,894.5
3,691.4
1,272.1
34.5%
12.1%
6.7x
19.6x
Spanish Broadcasting System Inc.
* United States United States
3.65
‐27%
26.5
362.9
153.2
47.3
30.9%
8.8%
2.4x
7.7x
Pandora Media, Inc.
* United States
27.59
‐14%
5,359.5
4,911.7
588.3
(42.0)
NM
53.5%
8.3x
Beasley Broadcast Group Inc. CC Media Holdings, Inc. Cumulus Media Inc. Emmis Communications Corp. Entercom Communications Corp. Journal Communications Inc. Radio One Inc. Salem Communications Corp. Sirius XM Holdings Inc.
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.0x)
23 | M&A and Investment Summary December 2013
6.2x
EV/EBITDA
NM 10.6x
Traditional Media Public Company Valuation Broadcast, Cable, and Satellite Television Company Name AMC Networks Inc. British Sky Broadcasting Group plc Cablevision Systems Corporation CBS Corporation Charter Communications, Inc. Comcast Corporation Crown Media Holdings Inc. DIRECTV Discovery Communications, Inc. Dish Network Corp. Entravision Communications Corporation General Communication Inc. Gray Television Inc. Grupo Televisa, S.A.B. Journal Communications Inc. Liberty Global plc LIN Media LLC Nexstar Broadcasting Group, Inc. Scripps Networks Interactive, Inc. Sinclair Broadcast Group Inc. The E. W. Scripps Company Time Warner Cable Inc. Ziggo N.V.
Headquarters United States United Kingdom United States United States
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 6,496.9
Revenue $ 1,523.3
EBITDA $ 520.3
LTM Margin
LTM
LTM Multiples
EBITDA
Rev Growth
EV/Rev
EV/EBITDA
34.2%
15.0%
4.3x
12.5x
$66.71
‐9%
Value $ 4,821.9
13.76
‐12%
21,462.3
23,942.4
11,921.0
2,473.9
20.8%
7.5%
2.0x
9.7x
17.20
‐15%
4,602.8
13,686.7
6,737.6
1,707.7
25.3%
6.8%
2.0x
8.0x
63.14
‐1%
37,887.7
43,967.7
15,071.0
3,675.0
24.4%
11.1%
2.9x
12.0x
United States United States
133.37
‐7%
13,888.2
28,180.2
7,920.0
2,742.0
34.6%
6.7%
3.6x
10.3x
51.07
‐2%
132,677.1
174,736.1
63,668.0
21,066.0
33.1%
3.2%
2.7x
8.3x
United States United States
3.51
‐3%
1,262.5
1,675.7
361.7
270.3
74.7%
4.2%
4.6x
6.2x
69.04
0%
36,276.5
54,293.5
31,214.0
7,731.0
24.8%
7.1%
1.7x
7.0x
88.58
‐2%
30,690.7
36,674.7
5,198.0
2,184.0
42.0%
18.3%
7.1x
16.8x
57.80
‐1%
26,475.0
30,308.9
14,352.4
2,858.3
19.9%
0.3%
2.1x
10.6x 11.8x
* United States United States United States United States United States
6.43
‐12%
566.2
887.7
227.6
75.5
33.2%
8.6%
3.9x
11.44
0%
461.4
1,800.0
780.0
245.2
31.4%
12.2%
2.3x
7.3x
14.58
‐4%
841.5
1,631.3
377.3
143.4
38.0%
4.0%
4.3x
11.4x
Mexico United States
29.89
‐4%
17,147.9
21,412.6
5,484.1
2,181.4
39.8%
6.4%
3.9x
9.8x
9.22
‐6%
469.9
689.2
418.1
87.1
20.8%
12.8%
1.6x
7.9x
* United Kingdom United States
88.60
‐1%
34,202.4
77,919.6
13,031.0
5,733.4
44.0%
30.5%
6.0x
13.6x
28.15
‐4%
1,544.9
2,473.0
664.6
205.7
30.9%
41.8%
3.7x
12.0x
* United States United States
54.21
‐4%
1,648.3
2,635.2
480.4
168.4
35.1%
37.8%
5.5x
15.6x
84.98
‐2%
12,413.4
13,673.5
2,481.1
1,095.1
44.1%
10.0%
5.5x
12.5x
United States United States
36.74
‐1%
3,680.8
5,934.5
1,264.9
466.8
36.9%
33.9%
4.7x
12.7x
21.07
‐4%
1,173.4
1,157.7
855.8
96.8
11.3%
1.7%
1.4x
12.0x
United States Netherlands
133.40
‐5%
37,604.1
61,526.1
22,028.0
7,721.0
35.1%
5.4%
2.8x
8.0x
44.37
‐4%
8,873.7
12,990.7
2,103.5
1,145.4
54.5%
1.5%
6.2x
11.3x
Adjusted Weighted Average
3.2x
9.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.5x) Entertainment Media Company Name DreamWorks Animation SKG Inc. Eros International Plc Lions Gate Entertainment Corp. Live Nation Entertainment, Inc. SFX Entertainment Inc. Twenty‐First Century Fox, Inc. Village Roadshow Limited World Wrestling Entertainment Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 3,093.4
Revenue $ 767.3
EBITDA $ 112.4
LTM Margin
LTM
LTM Multiples
EBITDA
Rev Growth
EV/Rev
EV/EBITDA
14.6%
9.0%
4.0x
27.5x
$35.19
‐2%
Value $ 2,948.7
11.04
‐3%
536.5
743.9
208.4
52.7
25.3%
1.0%
3.6x
14.1x
United States United States
30.99
‐18%
4,274.1
5,466.1
2,597.8
246.4
9.5%
21.0%
2.1x
22.2x
20.34
0%
4,008.6
4,740.0
6,302.7
457.1
7.3%
13.2%
0.8x
10.4x
* United States United States
10.97
‐18%
957.1
1,035.6
100.8
(60.5)
NM
0.0%
10.3x
35.20
‐2%
79,888.4
94,351.4
28,733.0
6,169.0
21.5%
24.4%
3.3x
* United States United Kingdom
Australia United States
6.72
‐7%
1,072.5
1,330.9
835.7
148.7
17.8%
0.1%
1.6x
9.0x
15.90
‐6%
1,194.1
1,108.7
504.7
56.6
11.2%
4.7%
2.2x
19.6x
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (9.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (23.5x)
24 | M&A and Investment Summary December 2013
NM 15.3x
3.1x
15.4x
Traditional Media Public Company Valuation ($ in Millions, except stock price data) Out‐of‐Home Media Company Name
Headquarters
AirMedia Group Inc. APG|SGA SA Clear Channel Outdoor Holdings Inc.
China Switzerland
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 24.0
Revenue $ 277.7
EBITDA $ 13.6
$2.13
‐33%
Value $ 127.5
274.20
‐2%
807.3
748.0
339.4
141.2
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples
4.9%
‐3.9%
0.1x
1.8x
41.6%
‐1.2%
2.2x
5.3x 11.8x
EV/EBITDA
United States Hong Kong
10.35
‐3%
3,697.7
8,425.6
2,943.3
715.8
24.3%
‐0.6%
2.9x
0.90
‐7%
484.2
307.7
204.4
82.9
40.6%
5.0%
1.5x
3.7x
France United States
40.62
‐2%
9,025.1
9,101.7
3,439.8
721.4
21.0%
4.5%
2.6x
12.6x
51.63
‐1%
4,886.2
6,846.4
1,236.9
531.1
42.9%
6.1%
5.5x
12.9x
0.76
‐61%
130.9
677.6
513.0
94.5
18.4%
28.4%
1.3x
7.2x
19.64
‐3%
1,184.2
2,101.2
456.0
218.6
47.9%
1.9%
4.6x
9.6x
0.68
‐31%
53.3
51.2
23.1
1.9
8.3%
‐4.7%
2.2x
26.6x
Tom Group Ltd.
* United States Hong Kong
0.15
‐32%
591.9
825.6
263.9
(1.6)
NM
‐12.4%
3.1x
Valassis Communications Inc.
United States
34.13
‐2%
1,302.5
1,763.9
2,047.2
257.7
12.6%
‐6.0%
0.9x
Clear Media Ltd. JCDecaux SA Lamar Advertising Co. Mood Media Corporation National CineMedia, Inc. NTN Buzztime Inc.
Canada United States
Adjusted Weighted Average
NM 6.8x
3.3x
11.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (16.8x) Publishing Company Name
Headquarters
A. H. Belo Corporation Daily Mail and General Trust plc Emmis Communications Corp. Gannett Co., Inc. Glacier Media, Inc. John Wiley & Sons Inc. Journal Communications Inc. Martha Stewart Living Omnimedia Inc. Meredith Corporation (1)
United States * United Kingdom United States United States Canada
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 108.3
Revenue $ 432.9
EBITDA $ 28.0
6,808.1
2,837.5
$7.53
‐12%
Value $ 164.7
16.00
‐1%
5,655.1
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples
6.5%
8.2%
0.3x
3.9x
580.4
20.5%
0.3%
2.4x
11.7x
EV/EBITDA
2.97
‐18%
124.1
303.2
199.7
35.1
17.6%
6.3%
1.5x
8.6x
29.59
‐1%
6,743.4
8,155.6
5,311.6
1,061.1
20.0%
1.7%
1.5x
7.7x
1.34
‐35%
119.3
269.2
320.4
42.4
13.2%
12.5%
0.8x
6.3x
* United States United States
53.56
‐5%
3,156.2
3,655.5
1,778.5
324.9
18.3%
1.7%
2.1x
11.3x
9.22
‐6%
469.9
689.2
418.1
87.1
20.8%
12.8%
1.6x
7.9x
United States United States
4.46
‐5%
252.1
216.4
169.6
(1.0)
NM
‐16.4%
1.3x
51.73
‐4%
2,281.5
2,635.1
1,473.6
263.2
17.9%
5.0%
1.8x
10.0x 12.4x
NM
Reed Elsevier plc Scholastic Corporation
* United Kingdom United States
14.77
‐1%
17,042.7
38,962.8
9,944.2
3,154.3
31.7%
0.0%
3.9x
32.89
‐4%
1,048.9
1,120.1
1,785.0
166.3
9.3%
‐12.7%
0.6x
6.7x
The E. W. Scripps Company
* United States United States
21.07
‐4%
1,173.4
1,157.7
855.8
96.8
11.3%
1.7%
1.4x
12.0x
4.14
‐2%
357.4
1,873.5
1,274.0
288.7
22.7%
‐6.8%
1.5x
6.5x
United States United States
15.60
‐3%
2,336.3
2,249.5
1,996.2
297.2
14.9%
19.2%
1.1x
7.6x
34.13
‐2%
1,302.5
1,763.9
2,047.2
257.7
12.6%
‐6.0%
0.9x
6.8x
The McClatchy Company The New York Times Company Valassis Communications Inc. Adjusted Weighted Average
(1) All financials are representative of the Reed Elsevier combined businesses, except per stock data, which represents Reed Elsevier (LSE:REL) *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (11.1x)
25 | M&A and Investment Summary December 2013
1.7x
7.8x
Technology & Communications
Of the $2.2 billion in reported transaction value in the Technology & Communications segment, $1.7 billion was from NCR’s purchase of an online banking solutions company Digital Insight
Activity in the segment was led by the Financial Technology subsegment with 14 deals announced, of which 12 were reported at $1.8 billion
Select acquisitions: • Ixia’s $190 million acquisition of Net Optics, a provider of application and network visibility solutions • Juniper Networks’ $60 million purchase of WANDL, a provider of software solutions for network planning, management, design, and optimization
• LifeLock’s $50 million purchase of digital wallet technology Lemon, which offers mobile money management applications • On Track Innovations’ $23 million acquisition of Israel‐based SmartID, a provider of online payment solutions TECHNOLOGY & COMMUNICATIONS TRANSACTIONS BY SEGMENT
Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value $MM
Buyout
Venture/Growth Capital
%
#
$MM
#
#
$MM
14
39%
$1,780.0
82%
6
$1,715.1
0
‐
8
$64.9
Communications Software
8
22%
277.0
13%
5
250.0
1
‐
2
27.0
Cloud Computing Technology
5
14%
30.9
1%
1
‐
0
‐
4
30.9
Financial Technology
%
Strategic
$MM
Cloud Storage
2
6%
29.5
1%
0
‐
0
‐
2
29.5
Networking Equipment
2
6%
12.4
1%
1
‐
0
‐
1
12.4
Communications Equipment
1
3%
8.0
0%
0
‐
0
‐
1
8.0
Data Center Technology
1
3%
‐
0%
1
‐
0
‐
0
‐
Other*
3
8%
40.0
2%
1
‐
0
‐
2
40.0
36
100%
2,177.8
100%
15
1,965.1
1
20
212.7
Total
*Other includes Enterprise Mobility, Software‐Defined Networking, Web Conferencing Software
26 | M&A and Investment Summary December 2013
0.0
Technology Public Company Valuation ($ in Millions, except stock price data)
Company Name 3M Company ACI Worldwide, Inc. ADATA Technology Co., Ltd. Advanced Micro Devices, Inc. Akamai Technologies, Inc. AVG Technologies N.V. Brightcove, Inc. CA Technologies Carbonite, Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 95,024.8
Revenue $ 30,689.0
EBITDA $ 7,876.0
United States United States
$138.45
‐1%
Value $ 92,102.8
64.34
‐2%
2,480.1
3,077.9
805.9
Taiwan United States
2.51
‐19%
572.8
721.2
4.00
‐14%
2,894.7
United States Netherlands
46.45
‐13%
8,313.5
United States United States
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
25.7%
3.7%
3.1x
12.1x
196.0
24.3%
39.5%
3.8x
15.7x
1,090.7
90.1
8.3%
9.3%
0.7x
8.0x
4,083.7
4,865.0
(90.0)
NM
‐18.3%
0.8x
7,747.2
1,519.8
556.6
36.6%
15.2%
5.1x
13.9x 6.9x
16.95
‐36%
922.8
907.0
400.4
132.0
33.0%
19.5%
2.3x
14.57
‐10%
419.2
385.1
104.5
(5.8)
NM
27.2%
3.7x
33.11
‐2%
14,941.7
14,035.7
4,614.0
1,593.0
34.5%
‐2.8%
3.0x
NM
NM 8.8x
12.60
‐24%
333.2
270.9
102.1
(0.3)
NM
31.4%
2.7x
23.37
‐5%
4,018.6
7,303.7
10,656.3
699.5
6.6%
6.5%
0.7x
10.4x
Check Point Software Technologies Ltd.
United States United States Israel
64.29
‐1%
12,628.9
11,368.4
1,375.6
771.9
56.1%
3.4%
8.3x
14.7x
ChinaCache International Holdings Ltd.
China
10.99
0%
257.2
213.6
161.5
0.1
0.1%
28.7%
1.3x
Citrix Systems, Inc.
United States United States
62.48
‐19%
11,646.1
10,951.4
2,856.0
625.7
21.9%
15.8%
3.8x
17.5x
74.67
‐17%
3,530.5
3,045.4
542.7
95.5
17.6%
21.4%
5.6x
31.9x
United States United States
27.86
‐3%
1,064.8
927.4
407.2
(10.3)
NM
25.8%
2.3x
NM
2.23
‐16%
26.6
33.8
12.6
(11.9)
NM
‐9.8%
2.7x
NM
Datalink Corporation
United States
10.98
‐25%
248.9
190.8
568.6
23.8
4.2%
24.0%
0.3x
8.0x
Dot Hill Systems Corp.
* United States Japan
3.27
‐4%
192.9
152.6
191.8
2.7
1.4%
‐2.9%
0.8x
56.1x
12.55
‐20%
276.5
162.3
636.8
77.4
12.2%
‐2.1%
0.3x
2.1x
25.07
‐8%
51,590.2
49,581.2
22,569.9
5,376.4
23.8%
6.2%
2.2x
9.2x
56.50
‐16%
461.7
531.9
1,008.8
74.3
7.4%
6.4%
0.5x
7.2x
CDW Corporation
CommVault Systems, Inc. Cray Inc. Crossroads Systems, Inc.
Elecom Co., Ltd. EMC Corporation ePlus inc. Euronet Worldwide Inc. F‐Secure Oyj Fusion‐io, Inc. Gemalto NV Google Inc. Green Dot Corporation Imperva Inc. Integrated Electrical Services, Inc. Intel Corporation IBM Corporation Interxion Holding NV J‐Stream Inc. Limelight Networks, Inc. LogMeIn, Inc. LSI Corporation Melbourne IT Ltd. Micron Technology Inc. Microsoft Corporation Montage Technology Group Limited NEC Corporation
United States United States
NM
NM
United States Finland United States
47.96
‐4%
2,410.9
2,419.6
1,389.0
174.7
12.6%
12.4%
1.7x
13.8x
2.65
‐9%
412.4
358.8
210.2
43.9
20.9%
‐1.1%
1.7x
8.2x
9.40
‐58%
991.5
766.3
400.6
(46.0)
NM
‐0.6%
1.9x
Netherlands United States
110.50
‐9%
9,516.0
9,146.4
3,066.7
486.3
15.9%
11.9%
3.0x
18.8x
United States United States United States United States
NM
1,105.00
‐1%
369,166.6
321,567.6
57,386.0
17,599.0
30.7%
23.8%
5.6x
18.3x
24.89
‐6%
929.8
514.8
576.0
80.1
13.9%
6.8%
0.9x
6.4x
49.69
‐6%
1,240.4
1,131.7
126.8
(13.8)
NM
32.5%
8.9x
5.90
‐9%
105.3
98.3
494.6
6.3
1.3%
8.4%
0.2x
15.6x 6.1x
NM
25.78
‐1%
128,152.4
122,636.4
52,351.0
20,102.0
38.4%
‐2.6%
2.3x
United States Netherlands
186.64
‐14%
202,663.8
228,701.8
101,356.0
25,939.0
25.6%
‐3.2%
2.3x
8.8x
24.05
‐14%
1,654.9
2,034.6
408.5
165.5
40.5%
12.4%
5.0x
12.3x
Japan United States
4.86
‐44%
56.5
43.2
47.6
3.4
7.2%
‐12.6%
0.9x
12.6x
1.99
‐22%
193.6
82.3
177.7
(9.7)
NM
‐1.1%
0.5x
* United States United States
32.71
‐5%
792.3
592.9
158.1
5.3
3.3%
17.8%
3.8x
112.7x
11.03
0%
6,059.4
5,394.7
2,365.3
331.1
14.0%
‐2.6%
2.3x
16.3x
1.68
‐24%
139.6
54.1
151.3
20.6
13.6%
11.2%
0.4x
2.6x
20.97
‐11%
22,174.7
25,974.7
9,073.0
2,163.0
23.8%
10.2%
2.9x
12.0x
Australia United States United States China Japan
27 | M&A and Investment Summary December 2013
NM
36.91
‐5%
308,123.5
244,714.5
80,370.0
31,367.0
39.0%
11.1%
3.0x
7.8x
17.42
‐12%
461.2
468.0
99.2
24.6
24.8%
0.0%
4.7x
19.0x
2.27
‐20%
5,891.2
11,730.5
30,642.0
1,691.8
5.5%
‐1.1%
0.4x
6.9x
Technology Public Company Valuation ($ in Millions, except stock price data)
Company Name NetApp, Inc. Nimble Storage, Inc. Oracle Corporation ProAct IT Group AB Qualys, Inc. Quantum Corporation Rackspace Hosting, Inc. Red Hat, Inc. SanDisk Corp. SAP AG Seagate Technology Public Limited Company Silicon Graphics International Corp. SK Hynix, Inc. Sony Corporation Splunk, Inc. Symantec Corporation Synchronoss Technologies, Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 9,467.5
Revenue $ 6,412.7
EBITDA $ 937.9
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
EV/EBITDA
14.6%
2.5%
1.5x
10.1x
0.0%
28.6x
$40.33
‐10%
Value $ 13,745.2
$42.96
‐10%
3,019.2
2,984.5
104.2
(37.0)
NM
United States Sweden
37.62
‐2%
169,192.5
156,862.5
37,552.0
16,289.0
43.4%
12.50
‐25%
116.4
145.2
354.9
21.0
* United States United States
24.75
‐1%
798.2
698.4
103.6
12.7
1.27
‐27%
315.1
446.3
578.8
18.1
United States United States
37.55
‐54%
5,250.0
5,052.6
1,479.6
413.4
55.78
‐5%
10,570.3
9,603.7
1,482.1
302.7
United States Germany
68.86
‐3%
15,554.9
14,326.1
5,983.6
84.23
‐5%
100,532.1
103,318.1
22,646.0
Ireland United States South Korea
56.82
‐1%
18,531.4
18,902.4
13.69
‐35%
469.0
308.9
34.39
‐3%
24,420.3
26,493.3
Japan * United States
17.47
‐24%
18,126.2
22,173.5
70.98
‐5%
7,614.0
7,262.1
267.9
United States United States
23.11
‐15%
16,085.3
14,347.3
6,885.0
United States * United States
LTM Multiples
NM
0.9%
4.2x
9.6x
5.9%
‐5.8%
0.4x
6.9x
12.3%
18.5%
6.7x
55.0x
3.1%
‐6.9%
0.8x
24.7x
27.9%
19.4%
3.4x
12.2x
20.4%
16.0%
6.5x
31.7x
1,929.3
32.2%
17.6%
2.4x
7.4x
7,921.8
35.0%
6.6%
4.6x
13.0x
14,108.0
2,839.0
20.1%
‐11.0%
1.3x
6.7x
721.9
9.5
1.3%
‐5.9%
0.4x
32.5x
12,566.9
5,360.8
42.7%
35.2%
2.1x
4.9x
72,772.6
3,162.9
4.3%
9.5%
0.3x
7.0x
(43.7)
NM
51.4%
27.1x
1,903.0
27.6%
1.8%
2.1x
7.5x 17.5x
NM
30.18
‐23%
1,181.8
1,146.1
325.0
65.6
20.2%
23.7%
3.5x
* United States United States
68.61
‐12%
4,058.5
3,832.1
192.8
(2.1)
NM
0.0%
19.9x
45.36
‐35%
7,411.8
6,804.8
2,663.0
594.0
22.3%
2.5%
2.6x
Japan United States United States
35.21
‐12%
4,727.4
3,526.2
1,061.8
358.0
33.7%
11.3%
3.3x
9.9x
14.96
‐9%
550.0
628.1
304.1
23.9
7.9%
38.7%
2.1x
26.3x
32.98
‐5%
1,448.2
1,373.4
3,439.9
226.2
6.6%
‐7.3%
0.4x
6.1x
United States United States
59.84
‐1%
8,201.2
7,758.1
949.7
594.0
62.5%
12.1%
8.2x
13.1x
3.77
‐53%
310.9
176.7
102.5
(115.6)
NM
40.8%
1.7x
89.42
‐10%
38,483.3
33,096.3
5,017.0
1,323.0
26.4%
14.7%
6.6x
Western Digital Corporation
United States United States
83.28
‐2%
19,698.1
17,227.1
15,120.0
3,202.0
21.2%
9.4%
1.1x
5.4x
Xoom Corporation
* United States
27.03
‐26%
1,009.8
808.6
112.2
8.7
7.7%
52.9%
7.2x
93.0x
3.7x
11.7x
Tableau Software, Inc. Teradata Corporation Trend Micro Inc. The KEYW Holding Corporation Unisys Corporation VeriSign, Inc. Violin Memory, Inc. VMware, Inc.
Adjusted Weighted Average
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (14.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (37.4x)
28 | M&A and Investment Summary December 2013
NM 11.5x
NM 25.0x
Communications Public Company Valuation ($ in Millions, except stock price data) Company Name Aastra Technologies Ltd. ADTRAN Inc. Alcatel Lucent Société Anonyme Allot Communications Ltd. Ambient Corporation Anaren, Inc. Aruba Networks, Inc. AudioCodes Ltd. Aviat Networks, Inc. Axesstel Inc. BlackBerry Limited Barracuda Networks, Inc. Blonder Tongue Laboratories Inc. BroadSoft, Inc. Brocade Communications Systems, Inc. CalAmp Corp. Calix Inc. Ciena Corporation Cisco Systems, Inc. Clearfield, Inc. ClearOne, Inc. COM DEV International Ltd. CommScope Holding Company Inc. Communications Systems Inc. Corning Inc. CTX Virtual Technologies, Inc. Cyan, Inc. DDS Wireless International Inc. Digi International Inc. DragonWave Inc. EchoStar Corp. Emulex Corporation Ericsson Extreme Networks Inc. F5 Networks, Inc.
Headquarters Canada United States France Israel United States
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 389.2
Revenue $ 582.4
EBITDA $ 43.8
622.4
$39.81
‐5%
Value $ 470.2
26.51
‐5%
1,529.3
1,384.9
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
7.5%
‐5.1%
0.7x
8.9x
55.4
8.9%
‐5.1%
2.2x
25.0x 9.7x
4.52
‐3%
12,373.2
14,662.5
19,759.1
1,506.4
7.6%
0.7%
0.7x
15.15
‐5%
493.4
378.3
95.6
(3.9)
NM
‐4.8%
4.0x
2.41
‐42%
40.3
35.7
20.0
(12.9)
NM
‐60.4%
1.8x
United States United States
27.94
‐1%
352.9
301.9
157.9
27.6
17.5%
6.9%
1.9x
17.73
‐34%
1,934.5
1,609.5
616.5
18.5
3.0%
13.8%
2.6x
87.0x
Israel United States
7.64
‐1%
291.5
257.1
133.8
5.5
4.1%
1.4%
1.9x
46.9x
2.31
‐41%
144.1
70.8
449.7
1.1
0.2%
0.5%
0.2x
64.4x
0.12
‐93%
3.1
11.8
27.4
(6.1)
NM
‐54.9%
0.4x
7.62
‐56%
7,955.4
5,893.4
8,514.0
(2,037.0)
NM
‐32.3%
0.7x
* United States United States
37.85
‐8%
1,893.2
1,865.2
218.0
2.4
1.1%
0.0%
8.6x
0.99
‐41%
6.2
11.5
28.4
(1.1)
NM
‐3.3%
0.4x
United States United States
26.50
‐33%
748.4
680.9
172.3
7.4
4.3%
8.0%
4.0x
8.86
‐2%
3,933.5
3,545.7
2,222.9
518.1
23.3%
‐0.7%
1.6x
6.8x
United States United States
27.56
‐7%
951.1
922.4
224.4
24.0
10.7%
32.2%
4.1x
38.4x
9.58
‐31%
476.9
397.7
380.0
11.8
3.1%
15.0%
1.0x
33.7x
United States United States
23.46
‐16%
2,433.0
3,173.5
2,082.5
132.4
6.4%
13.6%
1.5x
24.0x
21.98
‐17%
117,518.7
85,555.7
48,816.0
14,058.0
28.8%
4.6%
1.8x
6.1x
United States United States
19.33
‐8%
250.8
235.0
53.4
7.9
14.8%
42.4%
4.4x
29.7x
9.18
‐6%
82.5
62.3
48.4
7.7
15.9%
6.7%
1.3x
8.1x
Canada United States
3.51
‐15%
268.6
264.4
212.1
33.7
15.9%
8.3%
1.2x
7.8x
19.19
‐1%
3,563.7
6,266.4
3,481.8
654.1
18.8%
0.0%
1.8x
9.6x
10.78
‐13%
92.2
77.2
129.8
9.4
7.3%
25.0%
0.6x
8.2x
17.89
‐1%
25,890.4
23,354.4
8,009.0
2,601.0
32.5%
3.3%
2.9x
9.0x
1.48
‐41%
11.8
11.9
119.2
16.9
14.2%
198.1%
0.1x
0.7x
5.29
‐65%
245.6
173.6
125.5
(26.0)
NM
58.4%
1.4x
1.73
‐26%
23.6
14.5
36.5
2.3
6.3%
‐9.0%
0.4x
6.2x 12.9x
United States Canada
United States United States United States United States Canada United States
NM 10.9x
NM NM 769.5x NM 92.6x
NM
12.30
‐2%
317.8
229.5
195.4
17.8
9.1%
2.5%
1.2x
1.53
‐56%
81.1
89.5
116.7
(43.8)
NM
49.4%
0.8x
49.98
‐3%
4,517.6
5,249.8
3,260.6
636.5
19.5%
2.9%
1.6x
8.2x
7.35
‐18%
592.7
487.8
474.1
48.5
10.2%
‐5.7%
1.0x
10.1x
11.86
‐15%
38,126.6
32,986.3
35,381.9
4,218.3
11.9%
1.2%
0.9x
7.8x
‐3%
664.1
464.7
299.1
16.4
5.5%
‐6.5%
1.6x
28.3x
Canada United States United States Sweden
7.03
United States United States
NM
NM
88.03
‐18%
6,831.9
6,289.8
1,481.3
467.7
31.6%
7.6%
4.2x
13.4x
23.72
‐11%
2,280.2
2,014.1
1,038.6
130.8
12.6%
11.0%
1.9x
15.4x
43.23
‐17%
1,593.3
1,476.8
163.1
43.3
26.6%
38.8%
9.1x
34.1x
1.55
‐24%
16.1
5.9
21.0
(1.5)
NM
‐38.7%
0.3x
29.99
‐28%
932.3
826.9
129.1
(25.4)
NM
49.9%
6.4x
United States United States
23.91
‐33%
2,010.8
1,973.9
299.1
11.6
3.9%
38.2%
6.6x
170.9x
7.38
‐11%
744.0
574.7
513.3
31.4
6.1%
2.1%
1.1x
18.3x
69.30
‐2%
7,406.4
8,739.6
5,042.1
1,095.3
21.7%
‐6.2%
1.7x
8.0x
Infoblox Inc.
United States * United States
34.19
‐30%
1,811.1
1,581.9
239.1
4.4
1.8%
33.3%
6.6x
361.0x
Interactive Intelligence Group Inc.
United States
66.64
‐7%
1,347.8
1,264.3
298.0
23.7
8.0%
32.7%
4.2x
53.2x
Finisar Corp. Fleetmatics Group PLC Franklin Wireless Corp. Gigamon Inc. Gogo Inc. Harmonic Inc. Harris Corporation
United States * Ireland United States United States
29 | M&A and Investment Summary December 2013
NM NM
Communications Public Company Valuation JDS Uniphase Corporation Juniper Networks, Inc. KVH Industries Inc. Mavenir Systems, Inc. Meru Networks, Inc. Mitel Networks Corporation Motorola Solutions, Inc. Netgear Inc. Nokia Corporation Nuance Communications, Inc. Numerex Corp. Optical Cable Corp. Palo Alto Networks, Inc. PCTEL, Inc. Plantronics, Inc. Polycom, Inc. Procera Networks, Inc. QUALCOMM Incorporated RadiSys Corporation Radware Ltd. RELM Wireless Corp. RingCentral, Inc. Riverbed Technology, Inc.
United States United States
13.03
‐22%
$ 3,033.4
$ 2,528.8
$ 1,685.0
146.3
8.7%
1.0%
1.5x
17.3x
22.77
‐1%
11,498.94
9,653.04
4,536.30
736.5
16.2%
4.4%
2.1x
13.1x
United States United States
13.11
‐13%
204.7
184.9
162.9
16.8
10.3%
25.8%
1.1x
11.0x
10.92
‐9%
254.2
384.0
90.9
(6.6)
NM
12.0%
4.2x
4.49
‐35%
101.7
74.4
103.8
(11.4)
NM
12.1%
0.7x
9.46
‐8%
510.3
728.7
579.4
88.5
15.3%
‐2.1%
1.3x
8.2x
United States Canada
NM NM
United States United States
66.20
‐2%
17,126.8
16,727.8
8,633.0
1,519.0
17.6%
0.9%
1.9x
11.0x
32.52
‐21%
1,260.5
959.1
1,323.4
135.9
10.3%
4.2%
0.7x
7.1x
Finland United States
8.04
‐2%
29,861.1
26,427.3
34,174.7
3,857.3
11.3%
‐21.4%
0.8x
6.9x
15.34
‐38%
4,861.7
6,369.0
1,855.3
239.7
12.9%
12.3%
3.4x
26.6x
United States United States
12.95
‐7%
240.9
216.9
75.2
4.1
5.5%
20.5%
2.9x
52.9x
3.73
‐24%
24.5
33.3
75.3
2.8
3.7%
‐9.9%
0.4x
11.8x
* United States United States
57.44
‐8%
4,163.9
3,727.2
438.4
(6.6)
NM
54.4%
8.5x
9.32
‐8%
167.3
112.3
104.1
4.1
4.0%
25.4%
1.1x
United States United States United States
NM 27.2x
45.66
‐8%
1,929.5
1,570.4
798.4
155.9
19.5%
10.7%
2.0x
10.1x
11.56
‐3%
1,970.1
1,346.0
1,373.5
109.7
8.0%
‐3.7%
1.0x
12.3x
14.92
‐19%
303.6
194.7
69.9
(10.1)
NM
19.1%
2.8x
United States United States
72.89
‐2%
123,143.0
108,193.0
24,866.0
8,578.0
34.5%
30.0%
4.4x
12.6x
2.32
‐55%
67.5
68.9
257.0
2.7
1.0%
‐13.3%
0.3x
25.7x
Israel United States
17.66
‐9%
791.5
700.6
189.8
30.6
16.1%
2.9%
3.7x
22.9x
3.42
‐16%
46.4
38.8
26.6
2.2
8.3%
‐3.3%
1.5x
17.6x
United States United States
17.98
‐9%
1,119.0
1,131.6
148.3
(27.5)
NM
0.0%
7.6x
17.92
‐15%
2,901.6
2,991.0
995.2
129.3
13.0%
24.0%
3.0x
NM
NM 23.1x
Sandvine Corporation
Canada
2.66
‐8%
370.4
283.7
103.2
20.2
19.5%
26.8%
2.7x
14.1x
ShoreTel, Inc.
* United States Canada
9.34
‐2%
563.8
527.4
322.8
0.7
0.2%
20.6%
1.6x
800.2x
Sierra Wireless Inc. SolarWinds, Inc. Solera Holdings Inc. Sonus Networks, Inc. Telcoware Co., Ltd. TeleCommunication Systems Inc. TESSCO Technologies Inc. Transmode AB (publ)
* United States United States United States South Korea United States United States Sweden
24.96
‐6%
767.7
585.2
432.7
(4.1)
NM
127.6%
1.4x
38.11
‐38%
2,864.0
2,657.9
311.8
148.9
47.8%
24.2%
8.5x
17.8x
70.34
‐1%
4,843.6
5,580.9
860.4
341.8
39.7%
9.3%
6.5x
16.3x
3.04
‐20%
831.4
633.2
275.7
(8.8)
NM
8.9%
2.3x
10.89
‐15%
58.7
10.7
51.6
6.9
13.4%
1.3%
0.2x
2.37
‐26%
139.1
230.7
416.3
32.8
7.9%
‐12.6%
0.6x
7.0x
39.91
‐5%
328.5
327.8
653.5
31.7
4.9%
‐19.4%
0.5x
10.3x 14.1x
NM
NM 1.5x
17.34
‐7%
481.6
422.2
164.5
29.9
18.2%
5.1%
2.6x
* Japan Canada
19.35
‐49%
168.2
156.8
9.4
(0.1)
NM
2.8%
16.6x
4.86
‐26%
108.4
77.4
86.4
13.9
16.1%
‐11.5%
0.9x
5.6x
United States United States
42.41
‐2%
2,267.0
2,543.2
880.5
177.0
20.1%
7.0%
2.9x
14.4x
61.19
‐17%
2,789.3
3,349.7
1,270.1
159.2
12.5%
30.9%
2.6x
21.0x
3.29
‐16%
704.7
671.2
831.6
90.4
10.9%
‐2.3%
0.8x
7.4x
Westell Technologies, Inc.
United States United States
3.85
‐21%
227.7
146.6
73.2
(1.0)
NM
62.6%
2.0x
ZTE Corp.
China
2.32
‐23%
7,818.2
11,399.3
12,766.0
478.5
3.7%
‐12.3%
0.9x
23.8x
2.5x
11.8x
Ubiquitous Corporation Vecima Networks Inc. Verint Systems Inc. ViaSat Inc. Vonage Holdings Corporation
Adjusted Weighted Average
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (190.0x)
30 | M&A and Investment Summary December 2013
NM
NM
Software
Within the Software segment, a total of $796 million in strategic and private equity exits were reported, while another $249 million in investments were announced
ERP Software was the most active and highest value subsegment with 11 transactions announced worth $650 million, followed by Security Software with nine transactions worth $76 million
Select acquisitions: • Amadeus IT Holding’s $500 million purchase of Newmarket, a provider of enterprise resource planning solutions • PTC’s $130 million acquisition of ThingWorx, a developer of software to link smart devices to the Internet Select investments: • Index Ventures’ $32.7 million investment in MetaPack, a UK‐based provider of delivery management software solutions for retailers SOFTWARE TRANSACTIONS BY SEGMENT
Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value
Buyout
Venture/Growth Capital
$MM
%
#
$MM
#
#
$MM
11
20%
$650.4
62%
7
$611.9
1
‐
3
$38.5
Security
9
17%
76.0
7%
4
‐
0
‐
5
76.0
Application Management
5
9%
7.0
1%
2
‐
0
‐
3
7.0
Healthcare
5
9%
26.6
3%
0
‐
0
‐
5
26.6
Infrastructure
5
9%
44.9
4%
1
‐
0
‐
4
44.9
1
ERP
Financial
%
Strategic
$MM
4
7%
3.1
0%
‐
1
‐
2
3.1
Other*
15
28%
236.8
23%
7
184.1
0
‐
8
52.7
Total
54
100%
1,044.8
100%
22
796.0
2
0.0
30
248.8
*Other includes Collaboration, Credit/Risk, Data Management, Engineering, Geo‐Demo, HR, and Software Development Tools
31 | M&A and Investment Summary December 2013
Software Public Company Valuation ($ in Millions, except stock price data) Financial & Credit/Risk Management Software Company Name Advent Software, Inc. Ebix Inc. Epiq Systems, Inc. Fidessa group plc
Headquarters United States United States United States United Kingdom
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
Cash & ST.
Total
LTM
Value $ 2,070.3
Investments $ 41.4
Debt $ 350.0
Revenue $ 377.4
EBITDA $ 76.1
$34.52
‐5%
Value $ 1,761.7
14.37
‐32%
550.9
572.5
37.7
59.3
207.9
15.75
‐6%
547.5
822.0
37.5
312.0
405.9
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA 27.2x
20.2%
6.9%
5.5x
83.9
40.3%
9.8%
2.8x
6.8x
72.6
17.9%
24.9%
2.0x
11.3x 16.0x
37.55
‐5%
1,413.4
1,330.8
76.4
‐
420.5
83.1
19.8%
‐2.1%
3.2x
United States United Kingdom
48.49
‐6%
3,247.8
2,719.1
528.7
‐
303.9
3.7
1.2%
25.1%
8.9x
0.58
‐2%
575.5
537.0
82.0
37.8
331.0
41.8
12.6%
5.5%
1.6x
0.42
‐20%
209.2
294.0
16.6
95.1
398.7
33.9
8.5%
‐10.7%
0.7x
8.7x
Model N, Inc.
United Kingdom * United States
11.60
‐53%
275.3
172.3
103.4
0.3
101.9
4.0
3.9%
20.9%
1.7x
43.6x
NetSuite Inc.
* United States
101.45
‐11%
7,576.7
7,373.1
467.1
263.6
384.5
(31.3)
NM
33.5%
19.2x
Performant Financial Corporation
United States United States
10.95
‐22%
527.3
593.8
69.6
136.0
251.3
81.4
32.4%
27.7%
2.4x
22.47
‐15%
1,744.9
1,700.9
44.0
‐
367.2
56.9
Guidewire Software, Inc. Innovation Group plc Management Consulting Group PLC
RealPage, Inc. Solera Holdings Inc. SS&C Technologies Holdings, Inc. Tyler Technologies, Inc.
United States United States * United States
15.5%
NM 12.8x
NM 7.3x
19.4%
4.6x
29.9x
70.34
‐1%
4,843.6
5,580.9
1,069.2
1,708.2
860.4
341.8
39.7%
9.3%
6.5x
16.3x
45.09
0%
3,707.7
4,462.3
81.6
836.2
701.9
277.0
39.5%
47.5%
6.4x
16.1x
102.29
‐3%
3,298.3
3,246.2
52.1
‐
401.3
76.1
19.0%
14.6%
8.1x
42.7x
Adjusted Weighted Average
6.1x
17.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (14.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.9x) Healthcare Software Company Name Accelrys Inc. Allscripts Healthcare Solutions, Inc. athenahealth, Inc. Cegedim SA Cerner Corporation Computer Programs & Systems Inc. Craneware plc McKesson Corporation MedAssets, Inc. Medidata Solutions, Inc. Merge Healthcare Incorporated
Headquarters United States * United States
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
Cash & ST.
Total
LTM
$9.58
‐4%
Value $ 533.3
Value $ 429.8
Investments $ 103.4
Debt $ ‐
Revenue $ 166.2
EBITDA $ 11.0
15.34
‐7%
2,708.1
3,192.2
60.8
544.8
1,373.0
28.5
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
6.6%
5.2%
2.6x
38.9x
2.1%
‐7.4%
2.3x
111.9x 107.0x
* United States France
133.02
‐8%
4,946.9
5,127.5
62.3
242.9
539.7
47.9
8.9%
35.4%
9.5x
31.47
‐16%
438.5
1,154.0
82.6
793.6
1,226.1
164.6
13.4%
‐0.8%
0.9x
7.0x
United States United States
54.70
‐8%
18,776.5
18,037.6
921.8
182.9
2,760.6
811.7
29.4%
9.6%
6.5x
22.2x
61.30
‐2%
‐
197.5
United Kingdom United States United States United States
670.4
13.6
50.0
25.3%
11.2%
3.4x
13.4x
8.83
‐2%
238.4
205.7
30.3
‐
41.5
11.6
27.9%
0.9%
5.0x
17.8x
160.71
‐4%
36,916.9
684.0
38,830.9
2,960.0
4,874.0
127,163.0
3,216.0
0.3x
12.1x
19.98
‐25%
1,236.1
2,038.6
‐
802.5
673.7
207.6
30.8%
6.4%
3.0x
9.8x
60.64
‐5%
3,245.1
3,113.6
358.6
227.1
260.9
42.5
16.3%
26.1%
11.9x
73.3x
2.5%
3.4%
United States United States
2.58
‐45%
242.7
469.6
19.5
245.9
242.7
16.4
6.7%
‐2.3%
1.9x
28.7x
20.90
‐13%
1,256.6
1,172.3
84.3
‐
446.4
89.0
19.9%
‐2.1%
2.6x
13.2x
United States United States
6.83
‐20%
118.8
134.9
4.3
12.8
28.7
0.6
2.1%
33.3%
4.7x
USMD Holdings, Inc.
20.20
‐54%
204.1
242.5
12.1
47.0
232.0
13.0
5.6%
291.4%
1.0x
18.6x
Veeva Systems Inc.
* United States
35.17
‐28%
4,382.4
4,109.0
273.4
‐
187.1
38.4
20.5%
0.0%
22.0x
106.9x
Quality Systems Inc. Streamline Health Solutions, Inc.
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (16.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (81.5x)
32 | M&A and Investment Summary December 2013
3.3x
NM
18.5x
Software Public Company Valuation ($ in Millions, except stock price data) HR Software Company Name 51job Inc. Allocate Software plc.
Headquarters China United Kingdom
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
Cash & ST.
Total
LTM
Value $ 1,823.1
Investments $ 495.8
Debt $ ‐
Revenue $ 251.0
EBITDA $ 82.4
19.9
6.1
56.0
5.6
$78.60
‐2%
Value $ 2,318.9
1.61
‐16%
107.7
92.7
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
8.3%
7.3x
22.1x
9.9%
1.0%
1.7x
16.7x
Benefitfocus, Inc.
United States
56.66
‐6%
1,386.1
1,309.0
84.7
7.5
96.7
(18.3)
NM
0.0%
13.5x
Concur Technologies, Inc.
* United States United States
101.48
‐11%
5,688.3
5,503.0
832.8
647.2
545.8
48.0
8.8%
24.1%
10.1x
166.7
Cornerstone OnDemand, Inc. Dice Holdings, Inc. LinkedIn Corporation Monster Worldwide, Inc. Saba Software, Inc. The Ultimate Software Group, Inc. Workday, Inc.
United States * United States United States United States United States * United States
2,805.0
EV/EBITDA
32.8%
NM 114.5x
53.91
‐3%
2,792.1
231.7
218.8
(28.8)
NM
60.5%
16.7x
7.34
‐30%
413.5
428.8
44.7
60.0
207.8
64.8
31.2%
9.4%
2.1x
6.6x
207.42
‐19%
24,766.9
22,494.7
2,272.3
‐
1,384.9
168.0
12.1%
65.6%
16.2x
133.9x
7.02
‐4%
736.2
838.2
86.9
189.0
820.1
126.0
15.4%
‐10.0%
1.0x
6.7x
12.44
0%
370.5
356.4
15.0
0.9
121.3
(9.8)
NM
7.7%
2.9x
151.88
‐7%
4,241.6
4,140.3
109.7
8.4
390.7
56.5
14.5%
24.9%
10.6x
82.47
‐2%
14,415.8
13,611.7
1,282.7
478.7
408.6
(106.2)
NM
73.6%
33.3x
Adjusted Weighted Average
NM
NM 73.3x NM
13.8x
47.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (29.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (107.1x) Security Software Company Name Absolute Software Corporation AVG Technologies N.V. Check Point Software Technologies Ltd. Cisco Systems, Inc. FireEye, Inc. Fortinet Inc. Gemalto NV Imperva Inc. Infoblox Inc. Juniper Networks, Inc. NQ Mobile Inc. Palo Alto Networks, Inc. Proofpoint, Inc. Qihoo 360 Technology Co. Ltd. Symantec Corporation
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
Cash & ST.
Total
LTM
Value $ 229.3
Investments $ 49.5
Debt $ ‐
Revenue $ 85.1
EBITDA $ 17.3
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples
Canada Netherlands
$6.46
‐15%
Value $ 277.2
16.95
‐36%
922.8
907.0
54.9
39.2
400.4
Israel United States
64.29
‐1%
12,628.9
11,368.4
1,260.4
‐
1,375.6
21.98
‐17%
117,518.7
85,555.7
48,201.0
16,226.0
48,816.0
14,058.0
4.6%
1.8x
* United States United States
57.02
0%
6,889.3
6,581.6
327.7
20.0
136.0
(107.7)
NM
0.0%
48.4x
19.27
‐24%
3,149.9
2,636.9
513.0
‐
589.1
96.5
16.4%
17.0%
4.5x
27.3x
Netherlands United States
110.50
‐9%
9,516.0
9,146.4
372.5
11.8
3,066.7
486.3
15.9%
11.9%
3.0x
18.8x
49.69
‐6%
1,240.4
1,131.7
106.8
‐
126.8
(13.8)
NM
32.5%
8.9x
NM
United States United States
34.19
‐30%
1,811.1
1,581.9
229.1
‐
239.1
4.4
1.8%
33.3%
6.6x
NM
22.77
‐1%
11,498.9
9,653.0
2,845.2
999.3
4,536.3
736.5
16.2%
4.4%
2.1x
13.1x
* China United States
15.95
‐38%
851.1
701.7
149.5
‐
158.9
4.8
3.0%
113.0%
4.4x
147.6x
‐
United States China
57.44
EV/Rev
EV/EBITDA 13.2x
20.3%
11.8%
2.7x
132.0
33.0%
19.5%
2.3x
6.9x
771.9
56.1%
3.4%
8.3x
14.7x
28.8%
6.1x NM
‐8%
4,163.9
3,727.2
436.7
438.4
(6.6)
NM
54.4%
8.5x
34.18
‐2%
1,227.3
1,158.5
71.6
2.8
125.7
(16.2)
NM
25.3%
9.2x
79.78
‐18%
9,794.7
9,402.6
1,004.4
600.0
552.4
145.9
26.4%
91.5%
17.0x
64.4x
2,094.0
6,885.0
1,903.0
27.6%
1.8%
2.1x
7.5x
NM NM
23.11
‐15%
16,085.3
14,347.3
3,832.0
Trend Micro Inc.
United States Japan
35.21
‐12%
4,727.4
3,526.2
1,279.6
‐
1,061.8
358.0
33.7%
11.3%
3.3x
9.9x
VeriSign, Inc.
United States
59.84
‐1%
8,201.2
7,758.1
1,806.8
1,363.8
949.7
594.0
62.5%
12.1%
8.2x
13.1x
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (30.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (69.3x)
33 | M&A and Investment Summary December 2013
3.6x
11.5x
Software Public Company Valuation ($ in Millions, except stock price data) Engineering Software Company Name Ansys, Inc. Autodesk, Inc. Aveva Group plc Dassault Systemes SA
Headquarters United States * United States United Kingdom France
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
Cash & ST.
Total
LTM
Value $ 7,223.9
Investments $ 707.8
Debt $ ‐
Revenue $ 846.0
EBITDA $ 393.9
9,717.5
2,060.5
746.2
2,294.2
$85.60
‐5%
Value $ 7,931.7
48.90
‐3%
11,031.8
35.31
‐19%
2,252.6
2,095.2
155.1
‐
122.83
‐12%
15,271.0
13,351.0
2,459.2
533.7
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
46.6%
9.1%
8.5x
18.3x
461.8
20.1%
‐0.2%
4.2x
21.0x
374.2
110.1
29.4%
10.9%
5.6x
19.0x
2,793.9
862.2
30.9%
4.4%
4.8x
15.5x
Adjusted Weighted Average
5.5x
16.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (9.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (20.8x) Infrastructure Software Company Name Adobe Systems Inc. CA Technologies CommVault Systems, Inc. Covisint Corporation Daegis Inc. Endurance International Group Holdings, Inc. Guidance Software, Inc. IBM Corporation
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
Cash & ST.
Total
LTM
‐3%
Value $ 29,573.3
Value $ 27,913.5
Investments $ 3,173.8
Debt $ 1,514.0
Revenue $ 4,055.2
EBITDA $ 769.1
* United States United States
$59.16 33.11
‐2%
14,941.7
14,035.7
2,811.0
1,905.0
4,614.0
United States United States
74.67
‐17%
3,530.5
3,045.4
485.1
‐
542.7
12.63
‐15%
471.9
470.8
1.1
‐
1.22
‐26%
20.0
31.6
4.0
13.95
‐6%
1,771.2
2,936.6
10.19
‐22%
293.6
277.0
186.64
‐14%
202,663.8
United States * United States United States United States
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA 36.3x
19.0%
‐7.9%
6.9x
1,593.0
34.5%
‐2.8%
3.0x
8.8x
95.5
17.6%
21.4%
5.6x
31.9x
98.1
(19.0)
NM
20.6%
4.8x
15.7
35.9
4.3
12.0%
‐12.1%
0.9x
7.4x
33.4
1,198.8
500.9
78.4
15.7%
0.0%
5.9x
37.4x
16.8
0.2
118.8
(9.3)
NM
‐3.5%
2.3x
228,701.8
10,273.0
36,180.0
101,356.0
25,939.0
25.6%
‐3.2%
2.3x
8.8x 22.5x
NM
NM
United States United States * United States
40.82
‐3%
4,429.5
3,808.9
620.6
‐
906.9
169.4
18.7%
12.8%
4.2x
12.00
‐4%
664.3
660.4
79.4
75.5
229.2
(0.2)
NM
8.0%
2.9x
101.45
‐11%
7,576.7
7,373.1
467.1
263.6
384.5
(31.3)
NM
33.5%
19.2x
Norway United States
13.72
‐1%
1,815.3
1,746.7
70.1
‐
271.3
75.6
27.9%
36.5%
6.4x
23.1x
37.62
‐2%
169,192.5
156,862.5
36,999.0
24,166.0
37,552.0
16,289.0
43.4%
0.9%
4.2x
9.6x
United States United States
19.48
‐41%
475.6
380.7
94.8
‐
70.2
(14.7)
NM
33.5%
5.4x
NM
55.12
‐6%
33,237.4
34,991.6
703.5
2,457.8
3,760.4
(19.4)
NM
32.1%
9.3x
NM
55.18
‐6%
7,655.5
7,435.4
220.1
‐
374.6
(35.7)
NM
80.3%
19.8x
NM
Textura Corporation
* United States United States
30.98
‐34%
763.0
647.5
127.7
11.8
35.5
(30.6)
NM
63.9%
18.2x
TIBCO Software Inc.
United States
23.26
‐14%
3,816.8
3,610.9
746.0
540.0
1,070.0
193.7
18.1%
4.4%
3.4x
Informatica Corporation IntraLinks Holdings, Inc. NetSuite Inc. Opera Software ASA Oracle Corporation Rally Software Development Corp. Salesforce.com, Inc ServiceNow, Inc.
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (18.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.2x)
34 | M&A and Investment Summary December 2013
3.9x
NM NM
NM 18.6x 9.7x
Information & Business Services
Strategic and private equity buyer transactions accounted for 85 percent of reported value during the month IT Consulting/Systems Integrations was the most active subsegment with 7 transactions announced Select acquisitions: • BC Partners’ $626 million purchase of UK‐based provider of financial news and business intelligence, Mergermarket • Bain Capital’s $501 million purchase of Macromill, a Japan‐based Internet research services provider
Select investments:
• The $42 million investment in UK‐based DataSift, a social‐data‐aggregation platform led by U.S. Scale Partners INFORMATION & BUSINESS SERVICES TRANSACTIONS BY SEGMENT Transactions #
BUYER/INVESTOR BREAKDOWN
Reported Value $MM
%
#
Buyout $MM
#
Venture/Growth Capital #
$MM
IT Consulting/Systems Integration
7
23%
$12.0
1%
4
‐
0
‐
3
$12.0
Market Research
4
13%
506.0
37%
2
‐
1
501.0
1
5.0
BPO
3
10%
‐
0%
1
‐
1
‐
1
‐
HR Information
3
10%
2.5
0%
2
‐
0
‐
1
2.5
Credit/Risk Management Information
2
6%
95.0
7%
1
‐
0
‐
1
10.0
Financial Information
%
Strategic
$MM
3
10%
665.7
48%
0
‐
2
625.7
1
40.0
Other*
10
32%
93.0
7%
7
135.0
1
‐
2
43.0
Total
32
100%
1,374.2
100%
17
135.0
5
10
112.5
*Other includes Contact Center, Data Processing/Enhancement, Healthcare Information, Legal Information, Management Consulting, Marketing Data, and Staffing
35 | M&A and Investment Summary December 2013
1,126.7
Information Services Public Company Valuation ($ in Millions, except stock price data) Financial & Credit/Risk Management Information Company Name Broadridge Financial Solutions, Inc. Computershare Limited CoreLogic, Inc. CoStar Group Inc. DST Systems Inc. Dun & Bradstreet Corp. Envestnet, Inc. Equifax Inc. Experian plc FactSet Research Systems Inc. Fair Isaac Corporation Fidelity National Information Services, Inc. Financial Engines, Inc. McGraw Hill Financial, Inc. Moody's Corporation Morningstar Inc. MSCI Inc. Reis, Inc. SEI Investments Co. Thomson Reuters Corporation The Nasdaq OMX Group, Inc. Verisk Analytics, Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 5,047.4
Revenue $ 2,480.2
EBITDA $ 492.8
United States Australia
$39.49
‐2%
Value $ 4,706.5
10.14
‐2%
5,642.7
6,882.4
2,015.7
United States * United States
35.15
‐3%
3,294.3
3,941.7
1,640.1
184.08
‐2%
5,293.4
5,228.0
90.18
‐2%
3,802.9
4,256.0
121.95
‐2%
4,653.6
5,900.5
40.36
‐2%
1,364.2
1,327.5
68.90
‐1%
8,384.1
United States United States * United States United States Ireland United States
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA 10.2x
19.9%
6.8%
2.0x
379.4
18.8%
11.8%
3.4x
18.1x
370.4
22.6%
9.1%
2.4x
10.6x
425.4
83.0
19.5%
34.6%
12.3x
63.0x
2,649.9
409.5
15.5%
4.3%
1.6x
10.4x
1,641.6
462.0
28.1%
‐3.4%
3.6x
12.8x
212.5
24.5
11.5%
48.2%
6.2x
54.2x
9,715.8
2,346.7
743.5
31.7%
14.5%
4.1x
13.1x
18.20
‐14%
18,208.3
21,570.2
4,784.0
1,635.0
34.2%
3.5%
4.5x
13.2x
108.47
‐9%
4,664.2
4,476.4
870.0
327.0
37.6%
6.0%
5.1x
13.7x
United States United States
61.59
‐3%
2,129.0
2,515.8
743.4
198.3
26.7%
9.9%
3.4x
12.7x
53.15
‐1%
15,473.7
19,644.4
5,992.3
1,529.1
25.5%
3.9%
3.3x
12.8x
* United States United States
68.41
‐4%
3,448.5
3,216.5
225.1
46.1
20.5%
28.4%
14.3x
69.8x 12.0x
77.54
‐2%
20,997.8
21,067.8
4,851.0
1,749.0
36.1%
97.8%
4.3x
United States United States
77.83
‐2%
16,741.2
16,887.0
2,947.5
1,297.2
44.0%
15.9%
5.7x
13.0x
78.39
‐9%
3,602.3
3,262.0
688.4
213.4
31.0%
6.5%
4.7x
15.3x
United States United States
43.17
‐5%
5,111.5
5,635.2
1,015.1
455.6
44.9%
9.2%
5.6x
12.4x
18.88
‐4%
205.9
195.7
34.1
7.0
20.6%
15.1%
5.7x
27.9x
United States United States
34.64
‐1%
5,909.9
5,382.6
1,088.7
259.2
23.8%
13.8%
4.9x
20.8x
37.67
‐2%
30,903.0
37,414.2
12,934.0
2,877.0
22.2%
‐3.1%
2.9x
13.0x
United States United States
39.78
‐2%
6,666.2
8,997.2
3,116.0
899.0
28.9%
‐2.6%
2.9x
10.0x
65.13
‐6%
10,956.9
12,082.9
1,679.0
748.4
44.6%
14.2%
7.2x
16.1x
Adjusted Weighted Average
4.1x
13.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (38.3x) ($ in Millions, except stock price data) Marketing Information Company Name Acxiom Corporation Alliance Data Systems Corporation Brainjuicer Group Plc Cello Group Plc Cision AB comScore, Inc. Cross Marketing Inc. Ebiquity plc GfK SE Harris Interactive Inc.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 2,750.2
Revenue $ 1,092.7
EBITDA $ 190.3
$36.25
‐6%
Value $ 2,723.0
263.70
‐1%
12,845.6
21,037.3
4,149.8
United Kingdom United Kingdom
5.45
‐4%
68.5
59.5
1.22
‐3%
100.8
Sweden * United States
5.37
‐41%
28.58
United States * United States
Japan United Kingdom Germany
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
17.4%
‐2.2%
2.5x
14.5x
1,243.8
30.0%
18.0%
5.1x
16.9x
32.2
3.9
12.1%
‐3.6%
1.8x
15.2x
119.5
219.0
12.6
5.8%
11.9%
0.5x
9.5x
79.7
120.2
135.8
(32.0)
NM
‐8.9%
0.9x
‐4%
1,020.0
959.0
278.7
23.7
8.5%
11.7%
3.4x
40.5x 6.0x
NM
9.82
‐36%
58.2
53.6
59.0
8.9
15.1%
9.8%
0.9x
1.98
‐4%
137.9
164.5
99.7
17.6
17.7%
21.0%
1.7x
9.3x
56.83
‐9%
2,074.5
2,657.7
2,040.8
262.2
12.8%
2.4%
1.3x
10.1x 8.5x
United States United States
1.99
‐9%
116.0
100.1
139.7
11.8
8.4%
‐2.1%
0.7x
Harte‐Hanks Inc.
7.85
‐22%
491.0
515.3
751.9
79.9
10.6%
23.5%
0.7x
6.4x
InnerWorkings Inc.
United States
7.91
‐50%
405.5
477.8
855.8
22.9
2.7%
11.9%
0.6x
20.8x
36 | M&A and Investment Summary December 2013
Information Services Public Company Valuation ($ in Millions, except stock price data) Marketing Information (Contd.) Company Name
Headquarters
Intage Holdings Inc. Ipsos SA Macromill, Inc.
Japan France
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value 238.3
Revenue 410.5
EBITDA 49.2
2,877.4
2,283.2
12.49
‐6%
Value 251.3
44.01
‐3%
1,993.9
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
12.0%
5.4%
0.6x
4.8x
261.2
11.4%
7.0%
1.3x
11.0x 9.4x
Japan United States Netherlands
7.48
‐12%
472.6
415.7
177.7
44.2
24.8%
16.2%
2.3x
49.25
‐14%
3,084.0
3,350.3
878.6
369.0
42.0%
11.0%
3.8x
9.1x
45.35
‐2%
17,128.0
23,332.0
5,716.0
1,607.0
28.1%
6.6%
4.1x
14.5x
4.83
‐13%
35.4
27.7
21.9
(1.3)
NM
‐0.3%
1.3x
21.65
‐4%
17,501.4
20,998.2
7,842.5
1,337.5
17.1%
13.6%
2.7x
15.7x
Rentrak Corporation
United States United Kingdom * United States
37.12
‐9%
444.5
422.0
111.8
15.9
14.3%
20.8%
3.8x
26.5x
YouGov PLC
United Kingdom
1.48
‐8%
144.4
133.5
95.0
6.8
7.2%
7.6%
1.4x
19.6x
NeuStar, Inc. Nielsen Holdings N.V. Onvia Inc. Pearson plc
Adjusted Weighted Average
NM
3.1x
14.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (22.6x) Other Information Company Name
Headquarters
Centaur Media plc Corporate Executive Board Co. Forrester Research Inc. Gartner Inc. IHS Inc. Informa plc National Research Corp. NIC Inc. Premier, Inc. Proofpoint, Inc. (1)
Reed Elsevier plc Solera Holdings Inc.
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 169.9
Revenue $ 109.4
EBITDA $ 14.6
3,043.5
790.3
175.6
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples
United Kingdom United States
$0.98
‐4%
Value $ 138.0
77.44
‐1%
2,602.8
United States United States
37.91
‐8%
748.8
591.2
295.2
38.8
13.1%
0.9%
2.0x
15.2x
69.74
‐2%
6,428.5
6,266.2
1,738.3
293.4
16.9%
10.8%
3.6x
21.4x
* United States Switzerland
116.56
‐4%
7,831.4
9,870.2
1,695.3
367.0
21.6%
14.1%
5.8x
26.9x
9.21
‐3%
5,564.4
7,080.9
1,879.5
568.9
30.3%
2.8%
3.8x
12.4x
United States United States United States * United States United Kingdom
EV/Rev
EV/EBITDA
13.3%
9.8%
1.6x
11.6x
22.2%
40.9%
3.9x
17.3x
34.69
‐25%
497.4
489.6
91.7
28.4
31.0%
9.7%
5.3x
17.2x
23.50
‐10%
1,527.3
1,436.4
245.7
59.5
24.2%
23.5%
5.8x
24.2x 3.5x
36.55
‐5%
1,183.3
1,147.7
806.3
328.9
40.8%
0.0%
1.4x
34.18
‐2%
1,227.3
1,158.5
125.7
(16.2)
NM
25.3%
9.2x
14.77
‐1%
32,023.3
38,962.8
9,944.2
3,154.3
31.7%
6.6%
3.9x
NM 12.4x
United States Ireland * United States
70.34
‐1%
4,843.6
5,580.9
860.4
341.8
39.7%
9.3%
6.5x
16.3x
3.88
‐7%
373.6
428.3
88.8
26.9
30.3%
‐5.2%
4.8x
15.9x
6.92
‐3%
219.5
177.4
90.1
6.0
6.6%
‐13.0%
2.0x
29.8x
61.69
‐13%
2,223.5
2,145.6
487.5
62.7
12.9%
17.8%
4.4x
34.2x
UBM plc
* United States United Kingdom
10.90
‐17%
2,645.7
3,474.0
1,203.3
278.6
23.2%
12.2%
2.9x
12.5x
Wolters Kluwer NV
Netherlands
28.13
‐2%
8,313.8
11,416.9
4,692.9
1,176.5
25.1%
4.0%
2.4x
Tarsus Group plc TechTarget, Inc. The Advisory Board Company
Adjusted Weighted Average (1) All financials are representative of the Reed Elsevier combined businesses, except per stock data, which represents Reed Elsevier (LSE:REL) *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (25.5x)
37 | M&A and Investment Summary December 2013
4.0x
9.7x 13.6x
Business Services Public Company Valuation ($ in Millions, except stock price data) Consulting Company Name CRA International Inc. FTI Consulting, Inc. Information Services Group, Inc. Navigant Consulting Inc. ICF International Inc. Huron Consulting Group Inc. The Hackett Group, Inc. Towers Watson & Co.
Headquarters
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value 188.8
Revenue 270.3
EBITDA 25.9
2,148.8
1,635.8
265.8
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples
9.6%
‐2.7%
0.7x
7.3x
16.2%
4.3%
1.3x
8.1x 10.2x
United States United States
20.15
‐13%
Value 204.8
40.05
‐14%
1,579.7
United States United States
4.04
‐13%
149.8
185.5
207.1
18.2
8.8%
10.2%
0.9x
18.75
‐5%
927.6
1,034.5
767.2
129.3
16.9%
9.0%
1.3x
8.0x
34.89
‐4%
694.0
752.1
951.5
88.2
9.3%
3.5%
0.8x
8.5x
61.20
‐6%
1,285.5
1,430.6
689.9
132.4
19.2%
13.4%
2.1x
10.8x
6.20
‐17%
190.3
190.4
212.1
19.8
9.3%
6.2%
0.9x
9.6x
127.48
‐1%
9,043.0
8,909.8
3,613.5
656.4
18.2%
6.3%
2.5x
13.6x
United States United States United States * United States
Adjusted Weighted Average
EV/EBITDA
2.1x
9.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (11.9x) HR Services Company Name Automatic Data Processing, Inc. Barrett Business Services Inc. Capita plc Dice Holdings, Inc. Edenred SA Insperity, Inc. LinkedIn Corporation Marsh & McLennan Companies, Inc. Monster Worldwide, Inc. Paychex, Inc. Professional Diversity Network LLC Towers Watson & Co. WageWorks, Inc.
Headquarters United States United States
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value 40,110.2
Revenue 11,512.2
EBITDA 2,411.7
80.73
‐4%
Value 38,865.4
93.82
‐4%
672.2
635.5
502.0
28.0
LTM Margin
LTM
EBITDA
Rev Growth
EV/Rev
LTM Multiples
20.9%
7.2%
3.5x
16.6x
5.6%
34.3%
1.3x
22.7x 16.3x
EV/EBITDA
United Kingdom United States
17.06
‐2%
11,202.3
13,769.6
5,415.8
843.8
15.6%
13.6%
2.5x
7.34
‐30%
413.5
428.8
207.8
64.8
31.2%
9.4%
2.1x
6.6x
France United States
33.05
‐10%
7,466.4
8,225.8
1,292.2
410.8
31.8%
4.9%
6.4x
20.0x
36.09
‐9%
922.8
713.6
2,231.4
87.2
3.9%
5.2%
0.3x
8.2x
* United States United States
207.42
‐19%
24,766.9
22,494.7
1,384.9
168.0
12.1%
65.6%
16.2x
133.9x
47.85
‐1%
26,258.9
27,365.9
12,148.0
2,355.0
19.4%
2.7%
2.3x
11.6x
United States United States
7.02
‐4%
736.2
838.2
820.1
126.0
15.4%
‐10.0%
1.0x
6.7x
45.22
‐2%
16,469.7
16,006.3
2,397.0
1,040.8
43.4%
5.7%
6.7x
15.4x
United States United States United States
4.72
‐42%
29.8
10.0
4.3
(0.7)
NM
‐30.1%
2.3x
127.48
‐1%
9,043.0
8,909.8
3,613.5
656.4
18.2%
6.3%
2.5x
13.6x
60.18
‐4%
2,081.9
1,802.2
210.9
45.2
21.4%
28.1%
8.5x
39.9x
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (13.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (61.1x)
38 | M&A and Investment Summary December 2013
3.7x
NM
15.5x
Business Services Public Company Valuation Outsourced Services Company Name AMREP Corporation Cenveo Inc. Communisis plc Consolidated Graphics, Inc. Contax Participacoes S.A. Convergys Corporation Elanders AB Eniro AB Exlservice Holdings, Inc. Firstsource Solutions Limited Genpact Ltd. InnerWorkings Inc. Innotrac Corp. Luxoft Holding, Inc. MAXIMUS, Inc. Quad/Graphics, Inc. Quintiles Transnational Holdings Inc. R.R. Donnelley & Sons Company Salmat Ltd. Serco Group plc St Ives plc StarTek, Inc. Sykes Enterprises, Incorporated Teleperformance TeleTech Holdings Inc. Trans Cosmos, Inc.
Headquarters * United States United States
Stock Price 01/05/14
Chg % From 52WK High
Equity
Ent.
LTM
Value $ 51.5
Revenue $ 85.3
EBITDA $ 0.2
$7.42
‐48%
Value $ 53.4
3.39
‐5%
224.3
1,403.8
1,764.9
0.98
‐14%
189.4
210.6
66.70
‐3%
646.2
1.51
‐38%
21.02
LTM Margin
LTM
EBITDA
Rev Growth
LTM Multiples EV/Rev
EV/EBITDA
0.2%
4.9%
0.6x
254.9x
169.3
9.6%
‐1.2%
0.8x
8.3x
362.4
30.7
8.5%
6.9%
0.6x
6.9x
727.7
1,039.1
117.5
11.3%
0.3%
0.7x
6.2x
621.2
955.6
1,628.3
171.3
10.5%
4.3%
0.6x
5.6x
‐2%
2,138.0
1,546.7
2,027.6
229.8
11.3%
1.5%
0.8x
6.7x
3.88
‐6%
88.2
214.7
315.4
33.9
10.8%
4.7%
0.7x
6.3x
7.53
‐2%
754.8
1,164.4
580.2
144.6
24.9%
‐9.1%
2.0x
8.1x
United States India Bermuda
26.91
‐18%
886.3
750.4
472.0
86.2
18.3%
10.3%
1.6x
8.7x
0.36
‐5%
236.5
381.3
468.3
52.9
11.3%
11.9%
0.8x
7.2x
17.92
‐16%
4,124.9
4,291.0
2,081.2
385.0
18.5%
13.3%
2.1x
11.1x
* United States United States
7.91
‐50%
405.5
477.8
855.8
22.9
2.7%
11.9%
0.6x
20.8x
United Kingdom United States Brazil United States Sweden Sweden
8.18
‐5%
108.3
106.7
123.2
8.9
7.3%
25.2%
0.9x
11.9x
* British Virgin Islands United States
37.79
‐4%
1,237.9
1,231.1
350.9
63.8
18.2%
0.0%
3.5x
19.3x
42.55
‐16%
2,916.3
2,792.2
1,331.3
219.4
16.5%
26.8%
2.1x
12.7x
United States United States
26.14
‐29%
1,255.7
2,791.0
4,576.8
551.5
12.0%
9.5%
0.6x
5.1x
46.29
‐3%
5,968.1
7,431.7
3,750.2
524.1
14.0%
0.0%
2.0x
14.2x
United States Australia
19.76
‐5%
3,591.4
6,662.1
10,384.6
1,125.9
10.8%
1.0%
0.6x
5.9x
1.91
‐23%
302.7
222.7
428.0
35.0
8.2%
‐7.9%
0.5x
6.4x
8.27
‐27%
4,041.9
5,285.4
7,783.0
598.2
7.7%
18.9%
0.7x
8.8x
2.85
‐10%
341.8
366.0
493.8
50.7
10.3%
‐2.1%
0.7x
7.2x
United Kingdom United Kingdom United States United States France United States
6.62
‐9%
101.2
95.2
223.0
9.0
4.0%
14.9%
0.4x
10.5x
21.34
‐8%
913.0
821.3
1,232.4
110.3
8.9%
12.1%
0.7x
7.4x
61.25
0%
3,432.1
3,338.9
3,140.5
395.4
12.6%
10.2%
1.1x
8.4x
23.89
‐12%
1,204.6
1,188.9
1,170.3
145.7
12.5%
0.2%
1.0x
8.2x
Japan Luxembourg
19.26
0%
792.3
587.7
1,786.3
110.2
6.2%
7.7%
0.3x
5.3x
0.19
‐7%
235.0
301.4
887.7
28.4
3.2%
12.0%
0.3x
10.6x
Transcontinental Inc.
Canada
13.51
‐17%
1,052.4
1,442.2
2,022.9
359.5
17.8%
‐0.1%
0.7x
4.0x
Vistaprint N.V.
54.97
‐6%
1,818.2
2,023.5
1,191.2
115.2
9.7%
12.4%
1.7x
17.6x
West Corporation
* Netherlands United States
25.65
‐23%
2,144.7
5,483.2
2,678.5
661.8
24.7%
3.7%
2.0x
8.3x
Xchanging PLC
United Kingdom
2.63
‐3%
635.5
529.9
1,053.1
112.9
10.7%
6.3%
0.5x
4.7x
Transcom WorldWide SA
Adjusted Weighted Average *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (1.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (23.5x)
39 | M&A and Investment Summary December 2013
1.7x
4.7x
PPLLC Indices Valuation Summary Public Company Index Digital Media/Commerce
MEAN 5.0x
Revenue Multiples MEDIAN W. AVG 2.5x 9.4x
ADJ. W. AVG* 7.4x
Digital Advertising Marketing Technology Agency
4.8x 5.8x 1.2x
2.9x 4.1x 1.2x
6.5x 4.4x 1.7x
6.1x 4.1x 1.7x
Marketing Services Traditional Media Technology
1.5x 2.9x
1.3x 2.4x
2.9x 3.4x
2.0x 3.1x
3.8x 2.5x 7.0x
2.3x 1.7x 4.7x
3.8x 2.7x 5.7x
3.7x 2.5x 4.9x
3.8x 1.5x
3.6x 0.8x
4.4x 3.2x
4.1x 2.1x
EBITDA Multiples MEDIAN W. AVG 17.3x 31.4x 23.0x 23.1x
ADJ. W. AVG* 22.8x 21.5x
Communications Software Information Business Services
Public Company Index Digital Media/Commerce Digital Advertising
MEAN 26.4x 34.0x
Marketing Technology Agency Marketing Services
39.9x 12.7x 16.6x
19.1x 10.5x 9.2x
12.8x 12.2x 12.2x
12.7x 12.0x 12.3x
Traditional Media Technology Communications
10.8x 17.4x 50.2x
10.3x 12.0x 13.8x
11.4x 11.6x 16.6x
11.0x 11.7x 11.8x
Software Information Business Services
30.8x 18.0x 13.4x
17.8x 13.4x 10.2x
17.1x 16.2x 20.5x
12.5x 14.2x 12.8x
As of close of business on 01/05/14 *Calculation is market cap weighted and excludes revenue multiples that are 3 standard deviations above the mean and EBITDA multiples that are 2 standard deviations above the mean 40 | M&A and Investment Summary December 2013
PPLLC Indices LTM Share Pricing Trends
Digital Media/Commerce and Traditional Media
155 140
Digital Advertising LTM Index Performance
170
LTM Index Performance
• S&P 500 – 31.1%
155
• S&P 500 – 31.1%
125
• Digital Media/ Commerce – 64.6%
110
• Traditional Media – 50.2%
Index Performance (%)
Index Performance (%)
170
95 80 Dec‐12
Feb‐13 S&P 500
Apr‐13
Jun‐13
Aug‐13
Digital Media/Commerce
Oct‐13
140
• Digital Advertising – 69.6% 125 110 95 80 Dec‐12
Dec‐13
Feb‐13
Marketing Technology
Aug‐13
Oct‐13
Dec‐13
Digital Advertising
Agency & Marketing Services LTM Index Performance
120
• S&P 500 – 31.1%
110
• Marketing Technology – 12.8%
LTM Index Performance 155
100 90
Feb‐13
Apr‐13 S&P 500
Jun‐13
Aug‐13
Oct‐13
Dec‐13
Index Performance (%)
Index Performance (%)
Jun‐13
S&P 500
Traditional Media
130
80 Dec‐12
Apr‐13
• S&P 500 – 31.1%
140
• Agency – 61.1%
125
• Marketing Services – 47.4%
110 95 80 Dec‐12
Feb‐13
Apr‐13
Jun‐13
Aug‐13
Oct‐13
Marketing Technology
S&P 500
Note: LTM as of 12/31/13 41 | M&A and Investment Summary December 2013
Agency
Marketing Services
Dec‐13
PPLLC Indices LTM Share Pricing Trends
Technology
Communications
• S&P 500 – 31.1%
120
• Technology – 31.9%
110 100 90 80 Dec‐12
140
LTM Index Performance
Feb‐13
Apr‐13 S&P 500
Jun‐13
Aug‐13
Index Performance (%)
Index Performance (%)
130
• Communications – 28.0%
110 100 90
Feb‐13
Apr‐13
Jun‐13
S&P 500
Technology
Software
Aug‐13
Oct‐13
Communications
Information & Business Services
130
LTM Index Performance
140
LTM Index Performance
120
• S&P 500 – 31.1%
130
• S&P 500 – 31.1%
110
• Software – 23.1%
120
• Information – 43.3%
110
• Business Services – 42.3%
100 90 80 Dec‐12
Feb‐13
Apr‐13 S&P 500
Jun‐13
Aug‐13 Software
Note: LTM as of 12/31/13 42 | M&A and Investment Summary December 2013
Oct‐13
Index Performance (%)
Index Performance (%)
• S&P 500 – 31.1%
120
80 Dec‐12
Oct‐13
LTM Index Performance
130
100 90 Dec‐12
Feb‐13 S&P 500
Apr‐13
Jun‐13
Information
Aug‐13
Oct‐13
Business Services
All Segments ($ in Millions)
Strategic Transactions Target
Target Segment
Buyer/Investor
Reported TV
Strategic Values Disclosed IMG Worl dwi de, Inc. Va l a s s i s Communica tions , Inc. Di gi ta l Ins i ght Corpora tion Res pons ys , Inc. Dea l er.com, Inc. Newma rket Interna ti ona l , Inc. KTVK‐TV, KASW‐TV, KMOV‐TV GLM Shows ForeSee Res ul ts , Inc. Tops y La bs , Inc. The Sta yz Group Net Optics , Inc. Gra cenote, Inc. Thi ngWorx eHi AutoServi ces Ha rt Sys tems , Inc. Amba Inves tment Servi ces Li mi ted Rhythm NewMedia , Inc. WANDL, Inc. QUMAS, Li mi ted Docs toc, Inc. Lemon, Inc. Nexs ta r Broa dca s ti ng Group, Inc. News y.com, Inc. PW Litera ture Storyful Sma rtID Ins i ghtera Compuda ta AG Si gna lDema nd, Inc. Si ri us wa re, Inc. Cl icka bi l i ty, Inc. QuickCue, LLC Strutta Medi a , Inc. KEVN‐TV Geopl a n Interworks K.K. Bul l s Eye Ma rketi ng Sys tems , LLC Quick Think Medi a Ltd.
43 | M&A and Investment Summary December 2013
Agency & Ma rketi ng Servi ces Tra di tiona l Media Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Adverti s i ng Softwa re Tra di tiona l Media Tra di tiona l Media Ma rketing Technol ogy Ma rketing Technol ogy Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Ma rketing Technol ogy Softwa re Di gi ta l Adverti s i ng Softwa re Informa ti on & Bus i nes s Services Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Softwa re Informa ti on & Bus i nes s Services Technol ogy & Communi ca ti ons Tra di tiona l Media Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Ma rketing Technol ogy Softwa re Ma rketing Technol ogy Technol ogy & Communi ca ti ons Ma rketing Technol ogy Ma rketing Technol ogy Agency & Ma rketi ng Servi ces Tra di tiona l Media Softwa re Agency & Ma rketi ng Servi ces Di gi ta l Adverti s i ng
Wi ll i a m Morri s Endea vor Enterta inment, LLC Ha rl a nd Cl a rke Corp. NCR Corpora tion Ora cl e Corpora ti on Dea l ertra ck Technol ogi es , Inc. Ama deus IT Hol di ng Meredith Corpora ti on Emera l d Expos i ti ons , Inc. Ans wers Corpora ti on Appl e Inc. HomeAwa y.com, Inc. Ixi a Tribune Compa ny PTC Ctri p.com Interna ti ona l Ltd Zebra Technol ogi es Corpora ti on Moody's Corpora ti on bl i nkx, Inc. Juni per Networks , Inc. Accel rys Softwa re, Inc. Intui t, Inc. LifeLock, Inc. Gra y Televi s i on Group, Inc. The E.W. Scri pps Compa ny Ba i du, Inc. News Corpora ti on, Inc. SuperCom Ma rketo, Inc. The Des ca rtes Sys tems Group, Inc. PROS Holdi ngs a cces s o Techol ogy Group, pl c Upla nd Softwa re OpenTa bl e.com, Inc. LX Ventures , Inc. Gra y Televi s i on Group, Inc. Ubis ens e Group pl c BOC Pa rtners , Inc. Ga ming Rea l ms PLC
$ 2,300.0 1,800.0 1,650.0 1,500.0 1,000.0 500.0 408.0 335.0 200.0 200.0 198.0 190.0 170.0 130.0 100.0 94.0 85.0 65.0 60.0 50.0 50.0 42.6 37.5 35.0 32.0 25.0 22.5 20.0 17.9 13.5 12.9 12.7 11.5 9.6 7.7 4.1 4.0 3.0
All Segments ($ in Millions)
Strategic Transactions Target
Target Segment
Buyer/Investor
Reported TV
Strategic Undisclosed 20:20 Mobi l e Group Li mited AppHero, Inc. Apptera , Inc. As pera , Inc. Boomera ng C3 Cons ul ting Ca rrot Crea ti ve Cl a ri ti cs Cl oudmeter, Inc. Col l a boRATE, Inc. Competence Ca l l Center AG Crys ta l Sema nti cs Ltd. CyberCoders , Inc. Di s tri buti on Service Technol ogi es , Inc. Docview, Deep Ri ver eBuddy EdgeCa s t Networks , Inc. EM Softwa re & Sys tems – S.A. (Pty) Ltd Enca ptis Bus i nes s Sol uti ons Entota Li mi ted Entrus t, Inc. eRei ns ure.com, Inc. eSoft, Inc. Evenly Fa nSna p, Inc. Fi s hEye Ana l yti cs Fra nkel Group As s oci a tes LLC Ful l Quota GoPa go, Inc. GoPa go, Inc. Hea l th Guru Medi a , Inc. Homeca re Homeba s e, LLC HRN Servi ces , Inc. HYTEC Gera teba u GmbH Idea ca Knowl edge Servi ces Li mi ted Ima gi ne Communi ca ti ons , Inc. Ins i eme Networks , Inc. Ji l i on SA KDAY 93.5 FM Ki mmich Softwa re Sys tems , Inc.
44 | M&A and Investment Summary December 2013
Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Di gi ta l Medi a /Commerce Informa ti on & Bus i nes s Services Agency & Ma rketi ng Servi ces Ma rketing Technol ogy Technol ogy & Communi ca ti ons Softwa re Ma rketing Technol ogy Di gi ta l Adverti s i ng Informa ti on & Bus i nes s Services Softwa re Informa ti on & Bus i nes s Services Technol ogy & Communi ca ti ons Ma rketing Technol ogy Softwa re Softwa re Informa ti on & Bus i nes s Services Softwa re Softwa re Softwa re Technol ogy & Communi ca ti ons Di gi ta l Adverti s i ng Informa ti on & Bus i nes s Services Informa ti on & Bus i nes s Services Agency & Ma rketi ng Servi ces Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Medi a /Commerce Softwa re Informa ti on & Bus i nes s Services Technol ogy & Communi ca ti ons Informa ti on & Bus i nes s Services Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Di gi ta l Adverti s i ng Tra di tiona l Media Informa ti on & Bus i nes s Services
Bri ghts ta r Corpora ti on Fus e Powered, Inc. Sol eo Communica tions , Inc. Interna ti ona l Bus ines s Ma chi nes Corpora ti on Groupon, Inc. Trimbl e Na viga tion Li mited Vi ce Media Sys tems i n Moti on, Inc. Spl unk, Inc. Hi reVue, Inc. Si lverfl eet Ca pi ta l 24/7 Media On As s i gnment, Inc. Sol era Hol di ngs , Inc. Appris s Inc. Booki ng.com B.V. Veri zon Di gi ta l Medi a Servi ces , Inc. Al ta i r Engi neering, Inc. Vi s i on33, Inc. Ba ckOffi ce As s ocia tes , LLC Da ta ca rd Group AmWINS Group, Inc. Unta ngl e, Inc. Squa re, Inc. Sea tGeek Ka nta r Medi a Huron Cons ul ti ng Group, Inc. Squa re 2 Ma rketi ng Ama zon.com, Inc. Doubl eBea m, Inc. Ki ta ra Medi a , Inc. Hea rs t Communica tions , Inc. Accounta bl e Hea l thca re Hol di ngs Corpora ti on KEYMILE GmbH Hi ta chi, Ltd. Ha rri s Broa dca s t Communi ca ti ons Ci s co Sys tems , Inc. Da il yMoti on Meruelo Medi a Vi s troni x, Inc.
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
All Segments ($ in Millions)
Strategic Transactions Target
Target Segment
Buyer/Investor
Reported TV
Strategic Undisclosed KLMK Group KXLJ, KTNL, KUBD Link Ana lyti cs LLC Littl e Eye Softwa re La bs Ptv Ltd. Loa nSi fter, Inc. Luci erna , Inc. Ma trix Sol uti ons Mus i quePl us , Mus i Ma x Nea rbuy Sys tems NetTemps .com Norma n Sha rk PHD Vi rtua l Technol ogi es , Inc. Prol exi c Technol ogi es Ptch Pul s ePoi nt Group, LLC Quik.i o Ra pLea f Rea dySta tus Sha ‐Sha Enterta inment SportStrea m Sta ckMob, Inc. Sta rs hi p Enterta i nment Corpora ti on Synergi ze TourSphere Upturn Sol uti ons , Inc. Veri l ogue, LLC Vora n Tecnol ogi a We Are Soci a l Ltd. Wel l nes s FX WetPa i nt, Inc. Whi ta ker Medi ca l , LLC Yowza !! Zoomedi a , Inc.
45 | M&A and Investment Summary December 2013
Informa ti on & Bus i nes s Services Tra di tiona l Media Ma rketing Technol ogy Softwa re Softwa re Softwa re Ma rketing Technol ogy Tra di tiona l Media Ma rketing Technol ogy Informa ti on & Bus i nes s Services Softwa re Technol ogy & Communi ca ti ons Softwa re Di gi ta l Medi a /Commerce Ma rketing Technol ogy Ma rketing Technol ogy Ma rketing Technol ogy Technol ogy & Communi ca ti ons Di gi ta l Adverti s i ng Di gi ta l Medi a /Commerce Softwa re Tra di tiona l Media Agency & Ma rketi ng Servi ces Informa ti on & Bus i nes s Services Softwa re Informa ti on & Bus i nes s Services Softwa re Agency & Ma rketi ng Servi ces Di gi ta l Medi a /Commerce Ma rketing Technol ogy Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce Agency & Ma rketi ng Servi ces
CBRE Group Dena l i Medi a Hol di ngs KPMG LLP Fa cebook Opti ma l Bl ue LLC Sma rtBea r Softwa re Fa ctSet Res ea rch Sys tems , Inc. V Medi a Group Reta il MeNot, Inc. Jobs InLogi s ti cs .com Bl ue Coa t Sys tems , Inc. Unitrends , Inc. Aka ma i Technol ogi es , Inc. Ya hoo!, Inc. Ol s on Ya hoo!, Inc. TowerDa ta , Inc. Dyn, Inc. Tel l y, Inc. Fa cebook Pa yPa l , Inc. LOEN Enterta i nment, Inc. Publi ci s Groupe S.A. OnCel l Dema ti c GmbH Publi ci s Hea l thca re Communi ca ti ons Group Genes ys Tel ecommuni ca ti ons La bora tories , Inc. Bl ueFocus Communica tion Group Co., Ltd. Hea l th El ements , LLC Vi ggl e, Inc. On As s i gnment, Inc. Spi ndl e, Inc. Ha rri s D. McKinney, Inc.
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
All Segments ($ in Millions)
Buyout Transactions Target
Target Segment
Buyer/Investor
Reported TV
Buyout Deals Values Disclosed Mergerma rket, LLC Ma cromi l l, Inc.
Di gi ta l Medi a /Commerce Informa ti on & Bus i nes s Services
BC Pa rtners Li mi ted Ba i n Ca pi ta l , LLC
$ 625.7 501.0
Criti ca l Pa th, Inc. Vera ma rk Technol ogi es , Pi nna cl e, Movero Zywa ve, Inc. Unigues t, Inc. Newgis ti cs , Inc. Moni tr Certa ra , L.P ACA Compl i a nce Group Na ylor, LLC Encore Ti ckets Ltd.
Technol ogy & Communi ca ti ons Softwa re Softwa re Ma rketing Technol ogy Ma rketing Technol ogy Ma rketing Technol ogy Informa ti on & Bus i nes s Services Informa ti on & Bus i nes s Services Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce
Ma rl in Equi ty Pa rtners Cl ea rl a ke Ca pi ta l Group Aurora Ca pi ta l Group Atl a nti c Street Ca pi ta l Ma na gement, LLC Littl eJohn & Co. LLC Spectra l Ca pi ta l Corpora onSpectra l Ca pi ta l Corp Ars ena l Ca pita l Pa rtners , Inc. New Mounta i n Ca pi ta l , LLC RLJ Equi ty Pa rtners ECI Pa rtners
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Buyout Deals Undisclosed
46 | M&A and Investment Summary December 2013
All Segments ($ in Millions)
Venture/Growth Capital Transactions Target
Target Segment
Buyer/Investor
Reported TV
VC/Growth Capital Values Disclosed Ans wers Corpora ti on Box, Inc. Shopi fy Wa rby Pa rker Pa l a nti r Technol ogies Knewton, Inc. Sna pcha t, Inc. Fl ipboa rd, Inc. Gl a s s door.com, Inc. Ooya l a , Inc. Da ta Si ft Ta l end Rea l Ma tters Corpora ti on Vi a medi a , Inc. Homejoy, Inc. FourSqua re La bs , Inc. Meta Pa ck Li mi ted Chef JAMF Softwa re, LLC Al i enVa ul t, Inc. TrueCa r, Inc. Egnyte, Inc. Moovi t Coi nba s e, Inc. Si mul medi a , Inc. Dea l erRa ter.com, LLC Crowdti lt, Inc. Cya nogenMod LLC Moda Opera ndi, Inc. Pl a i n Va ni ll a Corpora ti on WyzAnt, Inc. Obs erveIT, Inc. Sa i l thru, Inc. TubeMogul Gumi Co., Ltd. Ra i s e Ma rketpl a ce, Inc. Si mpl i.fi Hol di ngs Inc. Invi ncea , Inc. Pra cti ce Fus i on Trini ty Pha rma Sol uti ons
47 | M&A and Investment Summary December 2013
Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Ma rketing Technol ogy Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Informa ti on & Bus i nes s Services Ma rketing Technol ogy Informa ti on & Bus i nes s Services Agency & Ma rketi ng Servi ces Di gi ta l Adverti s i ng Di gi ta l Medi a /Commerce Softwa re Softwa re Technol ogy & Communi ca ti ons Softwa re Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Adverti s i ng Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Ma rketing Technol ogy Softwa re Softwa re Ma rketing Technol ogy
Summi t Pa rtners LP Mits ui & Compa ny, Ltd. OMERS Ventures Ti ger Gl oba l Ma na gement, LLC (Pri va te Inves tors ) Atomi co Inves tments (Pri va te Inves tors ) Ri zvi Tra vers e Ma na gement LLC Ti ger Gl oba l Ma na gement, LLC Tel s tra Ventures Upfront Ventures Iri s Ca pi ta l (Pri va te Inves tors ) U.S. Ba ncorp Googl e Ventures DFJ Growth Fund Index Ventures Sca l e Venture Pa rtners Summi t Pa rtners LP Intel Ca pi ta l Vul ca n Ca pita l Sea ga te Technologi es , Inc. Sequoi a Ca pi ta l Andrees s en Horowi tz Va l i a nt Ca pi ta l Ma na gement, L.P. Grea t Hi ll Pa rtners , LLC Andrees s en Horowi tz Andrees s en Horowi tz New Enterpri s e As s oci a tes Sequoi a Ca pi ta l Accel Pa rtners Ba i n Ca pi ta l Ventures Sca l e Venture Pa rtners Trini ty Ventures DBJ Ca pi ta l Co., Ltd. (Pri va te Inves tors ) Fronti er Ca pi ta l, LLC Grotech Ventures QUALCOMM Ventures Hea l th Enterpri s e Pa rtners
$ 300.0 100.0 100.0 60.0 58.0 51.0 50.0 50.0 50.0 43.0 42.0 40.0 40.0 40.0 38.0 35.0 32.7 32.0 30.0 30.0 30.0 29.5 28.0 25.0 25.0 25.0 23.0 23.0 22.0 22.0 21.5 20.0 20.0 20.0 19.0 18.1 16.1 16.0 15.0 15.0
All Segments ($ in Millions)
Venture/Growth Capital Transactions Target
Target Segment
Buyer/Investor
Reported TV
VC/Growth Capital Values Disclosed Yoka .com Jus tFa b Gi rna r Softwa re Pvt. Ltd. Cl ea rDATA Networks , Inc. Bl a ckl a ne GmbH Proxa ma Ltd. Pl umbee Ltd. Gl ue Networks , Inc. Infini o Sys tems , Inc. Trifa cta , Inc. Intercloud Sys tems , Inc. Intercloud Sys tems , Inc. InVi s i on App, Inc. Pa eDa e Yodo1, Ltd. Sha rea bl e Ink Corpora ti on CrowdWorks , Inc. Vha l l Nors e Corpora tion Hea l thLoop, Inc. Sojern, Inc. Bl uenos e Ana lyti cs , Inc. Ti cketl a nd Sna ps heet, Inc. Ga ming For Good Ma gzter, Inc. Brea dtri p 591 Weddi ng Network FILIP Technol ogi es , Inc. Zi mperi um Ltd. RethinkDB UIEvoluti on, Inc. Deli very Cl ub Tel l y, Inc. iROKO Pa rtners Excha nge La b, Inc. Yi el dMo, Inc. netpri ce.com, Limi ted Life360 Sens i oLa bs
48 | M&A and Investment Summary December 2013
Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Di gi ta l Medi a /Commerce Ma rketing Technol ogy Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Softwa re Ma rketing Technol ogy Informa ti on & Bus i nes s Services Technol ogy & Communi ca ti ons Softwa re Ma rketing Technol ogy Di gi ta l Medi a /Commerce Softwa re Softwa re Technol ogy & Communi ca ti ons Softwa re Softwa re Ma rketing Technol ogy Ma rketing Technol ogy Ma rketing Technol ogy Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Softwa re Softwa re Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Di gi ta l Adverti s i ng Di gi ta l Adverti s i ng Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Softwa re
Ba i du, Inc. Shi ni ng Ca pi ta l Ma na gement Sequoi a Ca pi ta l Merck Gl oba l Hea l th Innova ti on LLC Da iml er (Pri va te Inves tors ) Endemol Group BV (Pri va te Inves tors ) Bes s emer Venture Pa rtners Accel Pa rtners (Pri va te Inves tors ) (Pri va te Inves tors ) Fi rs tMa rk Ca pi ta l Si li con Va l l ey Ba nk GGV Ca pi ta l Lehmi Ventures CyberAgent, Inc. Legend Ca pi ta l Oa k Inves tment Pa rtners Ca nva s Venture Fund Tria ngl e Pea k Pa rtners , LP The Soci a l +Ca pi ta l Pa rtners hi p i Tech Ca pi ta l (Pri va te Inves tors ) (Pri va te Inves tors ) Si nga pore Pres s Hol dings Ltd. Chi na Broa dba nd Ca pi ta l Govtor Ca pi ta l Hori zons Ventures Ltd. Si erra Ventures Hi ghla nd Ca pi ta l Pa rtners Intel Ca pi ta l Addventure Venture Ca pita l Fund Lumi a Ca pi ta l Ti ger Gl oba l Ma na gement, LLC Bus ines s Growth Fund Googl e Ventures Di gi ta l Ga ra ge, Inc. Duchos s oi s Indus tri es , Inc. CM‐CIC Ca pi ta l Prive SA
15.0 15.0 15.0 14.0 14.0 13.0 13.0 12.4 12.0 12.0 12.0 11.6 11.6 11.6 11.0 10.7 10.7 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 7.7 7.0 7.0
All Segments ($ in Millions)
Venture/Growth Capital Transactions Target
Target Segment
Buyer/Investor
Reported TV
VC/Growth Capital Values Disclosed Fres hdes k, Inc. wywy GmbH Vi ew The Spa ce, Inc. Pa yoff.com Sna gFi lms , Inc. Da il yFea ts , Inc. Ca tchpoi nt Sys tems , Inc. OrderWithMe.com Pa s s port Pa rki ng, LLC Pa l mer Ha rgrea ves Shi ft La bs , Inc. Roots tock Softwa re QuickPa y Corpora tion MomentFeed, Inc. Grokker, Inc. Scrol l Motion, Inc. Ozy Medi a , Inc. La goa Ki doZen, Inc. Extol e, Inc. PureCa rs .com Retrofi t, Inc. DogSpot.de nWa y Tra vel .ru Neverwa re, Inc. Rev Worl dwi de, Inc. Pi xa l a te, Inc. Ta ki pi Peopl e Pa ttern Corpora ti on TRUFA GmbH i .Gr. El epha nti Wedo Shoppi ng Li mi ted The One Pl a ce Ca pi ta l Limi ted iMedX Loop Commerce, Inc. Tripl eLi ft, Inc. Ta xi bea t Ltd. Sta rMa ker Intera cti ve Ca ra mbol a Media Meta i l Li mi ted Pl a ynery, Inc.
49 | M&A and Investment Summary December 2013
Ma rketing Technol ogy Ma rketing Technol ogy Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Softwa re Softwa re Ma rketing Technol ogy Di gi ta l Medi a /Commerce Agency & Ma rketi ng Servi ces Agency & Ma rketi ng Servi ces Softwa re Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Di gi ta l Adverti s i ng Ma rketing Technol ogy Di gi ta l Medi a /Commerce Technol ogy & Communi ca ti ons Softwa re Ma rketing Technol ogy Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Softwa re Technol ogy & Communi ca ti ons Ma rketing Technol ogy Softwa re Ma rketing Technol ogy Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Softwa re Softwa re Ma rketing Technol ogy Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Ma rketing Technol ogy Di gi ta l Medi a /Commerce
Ti ger Gl oba l Ma na gement, LLC Ci pi o Pa rtners GmbH Trini ty Ventures (Pri va te Inves tors ) (Pri va te Inves tors ) Va zi ra Inves tments Ba ttery Ventures Vega s TechFund Grotech Ventures BGF DN Ca pi ta l (Pri va te Inves tors ) Fonti na l i s Pa rtners , LLC Si gni a Pa rtners , Inc. Khos l a Ventures (Pri va te Inves tors ) (Pri va te Inves tors ) Atl a s Venture Thi rd Poi nt Ventures Norwes t Venture Pa rtners Gemini Inves tors Dra per Fi s her Jurvets on (Pri va te Inves tors ) Tra ns li nk Ca pi ta l VEB Innova ti ons (Pri va te Inves tors ) (Pri va te Inves tors ) Ja vel i n Venture Pa rtners Menl o Ventures Mohr, Da vi dow Ventures Accel Pa rtners LMJ Hol di ngs MMC Ventures , LLC Ca l cul us Ca pi ta l (Pri va te Inves tors ) Pa yPa l , Inc. (Pri va te Inves tors ) Hummingbi rd Ventures QUALCOMM Ventures Pi ta ngo Venture Ca pi ta l New Worl d Ventures , LLC JAFCO Inves tment (As i a Pa cifi c) Ltd.
7.0 7.0 7.0 7.0 6.5 6.0 6.0 6.0 6.0 6.0 6.0 5.8 5.5 5.5 5.5 5.4 5.4 5.3 5.0 5.0 5.0 5.0 5.0 5.0 5.0 4.9 4.8 4.6 4.5 4.5 4.5 4.5 4.5 4.4 4.0 4.0 4.0 4.0 4.0 4.0 3.9 3.8
All Segments ($ in Millions)
Venture/Growth Capital Transactions Target
Target Segment
Buyer/Investor
Reported TV
VC/Growth Capital Values Disclosed GrouPa y Zwipe AS Shop Hers , Inc. Audi oEye, Inc. Da ta Hero, Inc. Retty, Inc. Ros s l yn Ana lyti cs Ltd. Da ti ca l , Inc Freenom SARL The Zebra , Inc. Sounda y S.r.L. Pymetrics , Inc. Wyms ee, Inc. GymPa ct, Inc. Qa zzow, Inc. Hi ghtower, Inc. Fl int Mobi le, Inc. Shi ppa bl e, Inc. Anturi s Sketchfa b, SAS Brea ker, Inc. Onde Fi ca r Gous to Fol l oze Fi gure 1, Inc. Veri vo Softwa re MOVE Gui des Limi ted Pra i rie Cl oudwa re, Inc. Jus tGo eGifter Pi ngTune Res ol uti onTube Codefied Inc. ByUs , Inc. Quovo, Inc. Ha tchbuck StreetHub Ltd. The Ora nge Chef Compa ny Ti dema rk, Inc. Ma na lto Pty Ltd 6th Street, Inc. Zerve, Inc.
50 | M&A and Investment Summary December 2013
Technol ogy & Communi ca ti ons Technol ogy & Communi ca ti ons Di gi ta l Medi a /Commerce Ma rketing Technol ogy Ma rketing Technol ogy Di gi ta l Medi a /Commerce Softwa re Softwa re Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Di gi ta l Medi a /Commerce Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Ma rketing Technol ogy Ma rketing Technol ogy Technol ogy & Communi ca ti ons Softwa re Softwa re Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Softwa re Softwa re Ma rketing Technol ogy Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Technol ogy & Communi ca ti ons Ma rketing Technol ogy Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Ma rketing Technol ogy Ma rketing Technol ogy Ma rketing Technol ogy Informa ti on & Bus i nes s Services
(Pri va te Inves tors ) (Pri va te Inves tors ) FLOODGATE Fund LP (Pri va te Inves tors ) Foundry Group Mizuho Ca pi ta l Pa rtners Compa ny, Ltd (Pri va te Inves tors ) Mercury Fund Ki ma Ventures FLOODGATE Fund LP Princi pi a Sgr Khos l a Ventures CommonAngel s Khos l a Ventures WRF Ca pi ta l Bes s emer Venture Pa rtners Veri zon Ventures Di vergent Ventures , LLC Runa Ca pi ta l Ba l derton Ca pi ta l Si emer Ventures (Pri va te Inves tors ) MMC Ventures , LLC (Pri va te Inves tors ) Rho Ca na da (Pri va te Inves tors ) Noti on Ca pita l Treetop Ventures , Inc. Ros emont Group Ca pi ta l Pa rtner (Pri va te Inves tors ) (Pri va te Inves tors ) Ma drona Venture Group e.Ventures (Pri va te Inves tors ) Long Li ght Ca pi ta l Cul ti va ti on Ca pi ta l Index Ventures Googl e Ventures (Pri va te Inves tors ) Ra ven Ca pi ta l (Pri va te Inves tors ) (Pri va te Inves tors )
3.5 3.5 3.5 3.3 3.2 3.2 3.1 3.0 3.0 3.0 2.6 2.5 2.5 2.5 2.4 2.1 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.9 1.9 1.8 1.8 1.7 1.7 1.7 1.6 1.5 1.5 1.5 1.4 1.2 1.2 1.2 1.0 1.0 1.0 1.0
All Segments ($ in Millions)
Venture/Growth Capital Transactions Target
Target Segment
Buyer/Investor
Reported TV
VC/Growth Capital Undisclosed Sta rmount Inc. Di vvy Cloud Corpora ti on Pl a nvi ew, Inc. Moca na Corpora ti on Ra nca rd Sol uti ons Ltd. Apex Informa tion Technol ogi es Ea s ynet NSS La bs , Inc. Bi ts tri ps , Inc. Power Suppl y Col l ective, Inc. Abroa d101 7Summi ts , LLC Voca ni c Pte. Ltd.
51 | M&A and Investment Summary December 2013
Tra di tiona l Media Technol ogy & Communi ca ti ons Softwa re Softwa re Ma rketing Technol ogy Informa ti on & Bus i nes s Services Informa ti on & Bus i nes s Services Informa ti on & Bus i nes s Services Di gi ta l Medi a /Commerce Di gi ta l Medi a /Commerce Di gi ta l Adverti s i ng Agency & Ma rketi ng Servi ces Agency & Ma rketi ng Servi ces
Ka yne Pa rtners CIT Ga p Funds Ins i ght Venture Pa rtners Sha s ta Ventures Penins ul a Ca pi ta l Pa rtners L.L.C. Wes tView Ca pi ta l Pa rtners MDNX Group LiveOa k Equity Pa rtners Hori zons Ventures Ltd. CIT Ga p Funds Ledra Ca pi ta l LLC Sveri ca Interna ti ona l GroupM
‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Petsky Prunier: Maximizing Shareholder Value Overview
Founded in 1999 Focused on the technology, marketing, media, eCommerce, and healthcare industries • More than 35 focused professionals Unique combination of investment banking and consulting expertise New York, Palo Alto, Las Vegas, Chicago, Boston, Tampa Sell‐side and private placement close rate is unmatched at our level of deal volume Deep relationships across a broad spectrum of venture capital and private equity groups, lenders and strategic buyers With strategic consulting firm Winterberry Group, one of the largest industry‐specific advisors providing strategic and transactional
services International reach enhanced through our partnership with investment bank Altium, which operates from eight offices across Europe Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker‐dealer
Sell‐Side Representation Capital Raising and Private Placements Corporate Divestitures M&A Advisory Fairness Opinions
52 | M&A and Investment Summary December 2013
Technology Media Marketing eCommerce Healthcare
Strategic Development and Competitive Analysis M&A Transaction Due Diligence Support and
Valuation Analysis Acquisition Strategy and Target Identification Publishing and Thought Leadership
Petsky Prunier was Ranked #1 by Bloomberg in 2011‐2013 for Mid‐Market Internet & Advertising Transactions Rank 1 2 3 4 4 4 7 7 9 10
Advisor Petsky Prunier LLC Goldman Sachs & Co. Jordan Edmiston Group, Inc. Morgan Stanley Nomura Holdings, Inc. GCA Savvian Group Corp. PwC China Renaissance Partners KPMG Corporate Finance Sumitomo Mitsui Financial Group, Inc.
Deal Count 44 35 31 29 29 29 24 24 22 20
Based on number of deals announced in 2011‐2013 valued at $500 million or less
50 transactions closed since 2011:
Ranging from strategic M&A transactions, including sales and divestitures, to private equity recaps, to growth
equity and late stage venture capital financings Across a broad universe of industries, including digital advertising and marketing, eCommerce and digital media, technology and software, information services, and healthcare
53 | M&A and Investment Summary December 2013
International Partnership with Altium Description
Network
Altium provides M&A and corporate finance advisory services to companies, private equity firms, and entrepreneurs
European‐based, mid‐market financial advisory group, employee‐owned and truly independent
New York Las Vegas Boston
Palo Alto Chicago Tampa
Madrid Manchester London Paris
Zurich Frankfurt Milan Munich
A leading advisor for more than 25 years Founded as the corporate finance arm of private equity investor Apax Partners
Operates eight international offices in Europe with additional partnerships in the U.S. and Asia
Completed 50+ technology transactions across 12 countries in the past five years
Allegro Advisors is a leading provider of investment banking services to corporations and public institutions in India with offices in Bangalore, Mumbai, Delhi
Hina Group has provided M&A advisory and corporate finance services on 50+ transactions in China
54 | M&A and Investment Summary December 2013
India
Beijing Shanghai
Representative Recent Transactions
a Berlin‐based worldwide travel solution provider for premium transportation one of the largest independent in‐store media companies in the U.S.
has received a double‐digit million Euro investment led by
has been sold to
a technology company delivering highly targeted programmatic marketing solutions using unstructured data has received a $16MM Series B investment led by
a leading UK‐based supplier of healthcare software and IT services a leading provider of transaction‐based media cost databases and software for television, radio, and digital advertising cost analysis
a leading provider of online customer acquisition services to the insurance industry
has been sold to
has been sold to
a leading provider of data‐driven enrollment marketing solutions to higher education institutions
a portfolio company of
has acquired select assets of
has been sold to
(AIM: EMIS)
(NYSE: RATE)
has sold one of the largest digital agencies has been sold to
a leading developer of popular real‐money and social gaming has been sold to
(Nasdaq: RNWK) (ENXTPA: PUB)
a leading provider of in‐store and shopper marketing signage to major North American retailers
a leading provider of social software solutions and digital marketing services for some of the world’s largest brands, one of just thirteen Facebook Strategic Preferred Marketing Developers (sPMD) has received a $68MM minority investment from
(Nasdaq: RNWK)
a real‐time behavioral advertising company has been acquired by
the largest provider of cloud‐based SaaS tools for printing signs, labels and tags, and publishing digital displays for retailers
a leading multiplatform travel and lifestyle media company
has been sold to
along with digital subsidiary
has been sold to
(Euronext Amsterdam: WKL)
a leading digital advertising monetization and shopper marketing partner for e‐commerce retailers a portfolio company of
has been sold to
has been sold to
a unit of
a subsidiary of
provider of online travel guides for top destinations around the world to
specializing in retail, digital, shopper marketing and consumer services
has been sold to
to
with financing from
a leader in technology and global in‐app advertising for Facebook, Apple (iOS), and Android developers
a provider of a cloud‐based integration platform for the digital marketing industry
has received $66M investment from
has received $15MM financing led by
(NYSE: GCI )
(NYSE: LXK )
a leading provider of digital production services to brands and agencies
has sold
a premier global provider of SaaS‐based online brand protection and domain recovery solutions a portfolio company of
a dynamic display media and retargeting company
a leading provider of transportation‐based digital media networks
has been acquired by
has received a mezzanine debt investment from
a leading digital direct marketing company utilizing a proprietary database to provide customer acquisition solutions for major brands
has received an equity investment from
has been sold to
with debt financing from (NYSE: AOL)
(NYSE: ACN)
(JASDAQ:4755)
has sold
a leader in multichannel retail, ecommerce and loyalty marketing services has been sold to
a leader in global healthcare primary market research and influence network mapping has been sold to
the top independent direct‐to‐consumer marketer of dental savings plans has been sold to
a portfolio company of
and
has sold a leading provider of taxi‐based outdoor media has been sold to
leading provider of services for domain name registration, acquisition, brokerage and sales to
a portfolio company of
Vestar Capital Partners has sold
a leading provider of integrated data, technology and analytics solutions to
(NYSE: PAY)
55 | M&A and Investment Summary December 2013
has acquired
a pioneer in measuring the impact of promotion on physician prescribing behavior
to