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M&A Snapshot Q3 2014

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M&A SNAPSHOT
Q3 - 2014
2012

Total M&A Exits (a)

2013

2014

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

364

466

387

327

406

416

494

464

509

Q3 2014 M&A activity up


80% year-over-year

63

Core M&A Exits (b)

Consideration
Exchanged

44

70

61
34

33

74

45

41

$18.5
$11.6

$9.7

$billions (b)

$6.1

$7.0

$8.1

$9.6

$9.4

$12.3

Highest consideration
exchanged since Q3 2012

Proportion Premium Value (c)


% of Total M&A Exits

4%

3%

3%

5%

2%

3%

4%

4%

4%

% of Core M&A Exits

27%

21%

32%

42%

17%

18%

29%

27%

20%

Source: Architect Partners LLC, Capital IQ, company filings and public information
a) M&A exits within Mobile | Internet | Digital Media sectors
b) Core M&A exits are defined as transactions with announced or estimated values between $25 million and $1 billion in consideration, as these typically represent successful business
building endeavors
c) Premium value transactions are defined as greater than 5 times invested equity capital or 5 times the estimated last twelve months revenue (LTM)

M&A BY SECTOR
Q3 - 2014

App
Development

Service
Provider

Consumer Application M&A was again led by online


and mobile games. Games for the China market
comprised 41% of consideration paid last quarter.
Also notable was the continued consolidation of the
Digital Marketing sector. Headline deals in Digital
Marketing included Facebooks acquisition of video
ad platform LiveRail, Millennial Medias purchase of
mobile supply-side platform, Nexage, LinkedIns
purchase of business marketing platform Bizo, and
Yahoos acquisition of mobile app ad platform, Flurry.

9%
Commerce

3%

Consumer
Application

19%

16%

3%
7%

9%

Media

7%
Security

Core Transactions by Sector

18%
3% 7%

Network Hardware
Infrastructure

Analytics
Application
Enterprise
Application

Number of Deals
by Sector

Digital
Marketing

SECTORS

$3,144

$556 $400 $195

Total sector M&A value in $mm

$107 $1,814

$2,822

$2,482

$3,076 $1,062 $2,805

Source: Architect Partners LLC, Capital IQ, company filings and public information

Consumer Application
Enterprise Application
Analytics Application
Network Infrastructure
App Development
Security
Commerce
Digital Marketing
Media
Hardware
Service Provider
3

PREMIUM VALUE DEALS


Q3 - 2014
Target | Acquirer

x LTM Revenue

GDC Technology | Huayi Brothers Media


Bell Aliant | BCE
Trulia | Zillow
Nexage | Millennial Media
SmartThings | Samsung
Concur Technologies | SAP America
Suzhou Tangren Digital | Surfilter Network
Location Labs | AVG
Ebates Performance | Rakuten
LSI, Axxia Networking Business | Intel
Get AS | TDC A/S

43.0x Premium Value is defined

as greater than 5 times


invested equity capital or 5
times the estimated last 12
months revenue (LTM)

Target | Acquirer

2.5

7.5

10

12.5

15

17.5

20

22.5

Indicates the LTM


revenue multiple of the
acquirer at the time of
acquisition relative to the
LTM revenue multiple
paid for target (darker)

25

x Invested Capital

LiveRail | Facebook

41.7x

Neebula Systems | ServiceNow


Twitch Interactive | Amazon
Myugcrights | Rightster Group
FeedHenry | RedHat
Citrus Lane | Care.com
Caviar | Square
Bizo | LinkedIn
0

Source: Architect Partners LLC, Capital IQ, company filings and public information

10

12

14

16

18

20
4

MOST ACTIVE
ACQUIRERS LTM
1.

2.
7 / 30 | $4.8B
drawElements
Gecko Design
Input Factory
Jetpac
Songza Media
Tinker Square
ZYNC

6.

3.

5.

5 / 22 | $300~400mm

1 / 10 | $19.3B

2 / 10 | $1.9B

2 / 9 | $3.2B

Bookpad Techsoft
ClarityRay
Flurry
Luminate
RayV

LiveRail

Front Porch Digital


TOA Technologies

Novel Projects
Prss B.V.

7.
2 / 9 | $800mm

4.

8.
1 / 7 | $418mm

Crossideas Srl
K.D.K Softwares (India)
Lighthouse Security Group

9.

10.

3 / 7 | $100mm
CardSpring
Madbits
Mitro Labs

2 / 6 | $2.6B

1 / 5 | $650mm

Mojang AB
SyntaxTree SARL

LSI Corporation,
Axxia Networking
Business and
Related Assets

Number of new deals in Q3 / total deals last 4 quarters | total spend last 4 quarters (a)

a) A number of transactions do not disclose acquisition price, so aggregate value of deals over the last twelve months is likely understated.
Source: Architect Partners LLC, Capital IQ, company filings and public information

CORE TRANSACTIONS
Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Access Industries (uk)

Perform Group plc.

$726

Commercializes multimedia sports content through Internet-enabled


digital platforms. Feltham, United Kingdom - based.

ACI Worldwide

Retail Decisions Plc

$205

Provides fraud prevention and payment processing solutions to


businesses worldwide. Brookwood, United Kingdom - based.

Amazon.com

Twitch Interactive

$970

Operates a video platform and community for gamers. San Francisco,


California - based.

Anhui Deli Household


Glass

Beijing WushenCentury
Network Technology Co

$150

Atmel Corporation

Newport Media

$170

AVG

Location Labs

$220

Beijing Join-Cheer
Software

Beijing Yiqilian Technology Co.

Beijing Orient National


Communication Science &
Technology
Beijing Venustech

VC-BACKED

x
x

$78

Oers internet advertisement services. China - based.

Shanghai P&C Information


Technology Co

$73

Designs and develops mobile financial system and financial application


software for small and midsize joint-stock banks and city commercial
banks. China - based.

Hangzhou Unimas Information


Technology Co.

$29

Provides information security service such as data processing and


security data switch products. Hangzhou, China - based.

NQ Mobile

$773

Blackbaud

MicroEdge

$160

Changyou.com

Develops and publishes 3D MMORPG games for local gamers. China based.
Develops and sells integrated radio frequency system-on-a-chip
solutions for broadcast communications, wireless connectivity, and
cellular markets. Lake Forest, California - based.

AP M&A
ALERT

Oers several mobile apps that provide parents the ability to monitor
and manage family member mobile phone usage.

Bison Capital Holding


Company Limited

Care.com

TARGET DESCRIPTION

Citrus Lane

Mobotap

Provides mobile Internet services in the areas of mobile security,


privacy, productivity, personalized cloud, and family protection.
Beijing, China - based.
Provides software solutions and services to the giving community
worldwide. New York - based.

$45

Operates as an e-commerce company that helps parents to discover


baby products and share information. Mountain View, California based.

$91

Oers Dolphin Browser, a Web-browser created and optimized for


Andriod and iOS phone and tablet users. San Francisco, California based.

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

x
x
x

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Connexions Loyalty

Skymall Ventures

$28

Provides turnkey merchandise and gift card programs for 14 unique


customer loyalty programs. Phoenix, Arizona - based.

Ericsson

Fabrix Systems

$95

Provides a cloud based scale out storage and computing platform.


Ra'anana, Israel - based.

Expedia

Wotif.com Holdings Limited

$606

Provides online travel booking services in Australia, New Zealand, Asia,


and internationally. Milton, Australia based.

Facebook

LiveRail

$500

Operates a monetization platform that provides online video


advertising solutions worldwide. San Francisco, California - based.

Fairfax Media Limited

All Homes Pty

$47

Owns and operates real estate advertising Website. Kingston, Australia


- based.

Fidelity National
Information Services

Clear2Pay nv/sa

$493

A payments technology company that focuses on delivering solutions


for payments processing. Diegem, Belgium - based.

FTD Companies

Provide Commerce

$422

Provide Commerce operates as an e-commerce retailer that oers


flowers, chocolates, gift baskets, and personalized gifts. San Diego,
California - based.

Gemalto NV

SafeNet

$890

Provides data protection and software monetization solutions for


commercial enterprises and government agencies worldwide.
Belcamp, Maryland - based.

Global Payments

Ezi Holdings Pty

$275

Provides recurring payment solutions and services through direct


debit, BPAY and eCommerce payment solutions. Australia - based.

Glu Mobile

Cie Games

$100

Cie Games creates online social games. Long Beach, California - based.

$50

Provides film and television (TV) information to major studios,


broadcast networks, production companies, guilds, talent agencies,
representation firms, media outlets, and casting agencies in North
America. Los Angeles, California - based.

Gracenote

Baseline

TARGET DESCRIPTION

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

AP M&A
ALERT

VC-BACKED

10

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Guangdong Golden Glass


Technologies

Nanjing Hanen Animation &


Game Co.

$83

Oers holographic multimedia interactive digital display and mobile


advertising services. Nanjing, China - based.

Health Insurance
Innovations

HealthPocket

$34

Operates a Website that compares and ranks health care plans.


Sunnyvale, California - based.

Huayi Brothers Media


Corporation

GDC Technology

$68

Provides software-based digital cinema solutions. Eastern, Hong Kong


- based

Hubei Kaile Science and


Technology

Vanzo Communication

$140

Vanzo Communication provides wireless communication devices and


services. China - based.

TARGET DESCRIPTION

Hunan TV & Broadcast


Intermediary Co.

Zhidian3G

$27

Provides online marketing, including mobile advertising, mobile game


joint operation, and oine mobile app promotions. Guangzhou, China
- based.

Inphi Corporation

Cortina Systems

$120

Manufactures communications semiconductor solutions that enable


network connectivity and bandwidth delivery from the core network to
the home network. Sunnyvale, California - based.

Intel Corporation

LSI Corporation, Axxia


Networking Business and
Related Assets

$650

Designs semiconductors and software that accelerate storage and


networking in datacenters, mobile networks and client computing. San
Jose, California - based.

Intercontinental Exchange

SuperDerivatives

$350

Provides cloud-based derivatives data, technology, and valuation


services for financial and commodity markets worldwide. New York based.

InvenSense

Trusted Positioning

$31

Develops and distributes indoor location and navigation software.


Calgary, Canada - based.

InvenSense

Movea SA

$75

Provides motion processing chips, software, and embeddable firmware


for the consumer electronics industry. Grenoble, France - based.

Kofax Limited

SOFTPRO GmbH

$35

Develops handwritten signature capturing and verification software


solutions and systems.Boeblingen, Germany - based.

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

AP M&A
ALERT

VC-BACKED

10

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

LinkedIn Corporation

Bizo

$175

Provides a business audience marketing platform that targets


professionals in the United States and internationally. San Francisco,
California - based.

TARGET DESCRIPTION

Millennial Media

Nexage

$88

Provides mobile advertising solutions to publishers and developers,


media buyers, agencies, and advertisers worldwide. Boston,
Massachusetts - based.

Monomoy Capital Partners

Cobra Electronics Corp.

$48

Designs and markets consumer electronics products in the United


States, Canada, and Europe. Chicago, Illinois - based.

New Media Investment


Group

The Providence Journal


Company

$46

Publishes daily newspaper in the United States. It provides news


reports on print, Web, mobile, and tablet. Providence, Rhode Island based.

News Corporation

Move

$934

Operates an online network of Websites for real estate search, finance,


and moving and home enthusiasts in North America. San Jose,
California - based.

Optimal Payments Plc

Meritus Payment Solutions

$210

Provides payment and transaction processing solutions. Santa Ana,


California - based.

PetSmart

Pet360

$160

Distributes pet food and pet supplies online to pet parents and
owners. Plymouth Meeting, Pennsylvania - based.

Powerise Information
Technology Co.

Shenzhen Tinno Mobile


Technology Corp.

$696

PTC

Axeda Corporation

$170

Rakuten

Ebates Performance
Marketing

$1,000

Realogy Group

zipRealty

$166

AP M&A
ALERT

VC-BACKED

Provides mobile communication products and services in China and


internationally. Shenzhen, China - based.
Provides a cloud-based service and software for managing connected
products and machines and implementing machine-to-machine (M2M)
and Internet of things (IoT) applications. Foxboro, Massachusetts based.
Oers online cash back shopping services. San Francisco, California based.
Operates as an online technology-enabled real estate brokerage
company in the United States. Emeryville, California - based.

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

10

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

Red Hat

FeedHenry

$82

Provides a cloud-based mobile application platform for enterprise App


Development and collaboration. Waterford, Ireland - based.

Rightster Group Plc

myugcrights.com

$86

Provides online video and management services. London, United


Kingdom - based.

Develops [x+1] Origin platform, a software-as-a-service based


integrated and open software for data-driven digital marketing. New
York - based.
Operates a real-time digital video advertising marketplace in the
United States, the United Kingdom, Australia, and Canada.
Westminster, Colorado - based.

Rocket Fuel

[x+1]

$236

RTL Group SA

SpotXchange

$144

RTL Interactive GmbH

Econa Shopping GmbH

$35

Operates recommendation and counselor portals like Sparwelt.de and


Deals.de. Germany - based.

Samsung

SmartThings

$200

Enables users to monitor, control and automate their homes through


an Android or iPhone mobile app.

ServiceNow

Neebula Systems

$100

Develops business service management (BSM) tools to manage virtual


environments and IT clouds. Hod Hasharon, Israel - based.

Shanghai Zhongji
Investment Holding

DIANDIAN Interacitve
(Beijing) Technology

$960

Develops social games across multiple online and mobile platforms.


Beijing, China - based.

Shenzhen Xunlei
Networking Technologies

Kuaipan Personal and


Kansunzi Business and Assets

$33

Siris Capital Group

Juniper Networks, Pulse


Product Portfolio

$250

Spirent Communications

Radvision Ltd., Technology


Business Unit

$25

Develops toolkits for the IP communication protocols and testing tools


for real-time voice and video over IP.

Square

Caviar

$100

Provides an Internet platform that enables users to order food online


from local restaurants. San Francisco, California - based.

AP M&A
ALERT

VC-BACKED

Kuaipan Personal and Kansunzi Business and Assets comprises a cloud


based personal storage service. China - based.
Oers a range of mobile security infrastructure products aimed at
protecting corporate-owned mobile devices. New York - based.

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

10

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Surfilter Network
Technology

Suzhou Tangren Digital


Technology Co.

$98

Operates online gaming services. China - based.

Symphony Technology
Group

McGraw-Hill Construction
Information Group

$320

Provides essential data, news, insights, and intelligence to better


inform construction professionals decisions and strengthen their
market position. New York - based.

Teleperformance S.A.

Aegis Business Group


SecureKey comp

$610

Provides identity and access management solutions. Greenwood


Village, Colorado - based.

TeliaSonera Aktiebolag
(publ)

Tele2 Norge AS

$776

Provides telecommunication services through broadband and VoiceOver-IP services. Oslo, Norway - based.

The Tandem Trust along


with Carel Du Toit,
Managing Director of
Mint, Yvonne Dias and
Francois Pienaar, currently
Directors of Mint

Mint Management
Technologies Proprietary
Limited

$99

Provides custom developed mobile applications. Johannesburg, South


Africa - based.

Tribune Digital Ventures

What's On India Media Private

$27

Operates as a TV guidance and electronic program guide (EPG)


company in India. Mumbai, India - based.

Vocus Communications

FX Networks

$105

Provides wide area network services and IP telephony exchange


services in New Zealand. Wellington, New Zealand - based.

Vodafone Group Public


Limited Company; WIND
Hellas
Telecommunications S.A.

Hellenic Company for


Telecommunications and
Telematic Applications S.A.

$737

Provides telecommunication and pay-tv services in Greece. Pallini,


Greece - based.

Vodafone-Panafon
Hellenic
Telecommunications
Company S.A.

hellas online S.A.

$321

Provides fixed-line telephony services in Greece. Athens, Greece based.

TARGET DESCRIPTION

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

AP M&A
ALERT

VC-BACKED

10

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Wirecard AG

Mikro Odeme A.S.

$34

Operates as a payment platform that provides mobile payment


solution. Istanbul, Turkey - based.

$91

Operates as a marketing technology company in Japan. It oers


customer relationship management (CRM) implementation through
cloud and agent services. Osaka, Japan - based.

$200 - 300

Provides a mobile application analytics and data-powered advertising


platform that provides various services to build, measure, advertise,
and monetize various applications. San Francisco, California - based

Yahoo Japan Corporation

Synergy Marketing

TARGET DESCRIPTION

Yahoo!

Flurry

Zhangjiagang Chemical
Machinery

Shanghai Baoku Network


Technology Co

$171

Shanghai Baoku Network Technology Co Ltd oers e-commerce


services for digital goods. The company is based in Shanghai, China based.

Zhejiang Great Southeast

UT Game

$91

Designs and develops online games. Shanghai, China - based.

Zhejiang WHWH Industry


Co.

XTone Animation Group

$203

Creates, plans, and develops mobile phone animation productions.


Shenzhen, China - based.

Alcatel-Lucent Shanghai Bell


Enterprise Communications

$31

Provides IP telecommunication services. Shanghai, China - based.

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

AP M&A
ALERT

VC-BACKED

10

OTHER NOTABLE DEALS


Q3 - 2014

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Alliance Data Systems


Corporation

Conversant

$2,449

Provides various digital marketing services in the United States and


internationally. Westlake Village, California - based.

BCE Inc.

Bell Aliant

$3,764

Provides regional telecommunications services in Atlantic Canada,


Ontario, and Quebec. Halifax, Canada - based.

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Cognizant Technology
Solutions Corporation

TriZetto Corporation

$2,700

Provides information technology and service solutions for health plans,


benefits administrators, care providers/physicians, payer clients,
hospitals, and healthcare systems. Englewood, Colorado - based.

Gannett Co., Inc.

Classified Ventures

$1,828

Provides digital marketing solutions in the automotive category. The


company owns and operates Cars.com, a Website that helps shoppers
to find new and used cars in the United States. Chicago, Illinois - based.

Ingenico S.A.

GlobalCollect BV

$1,119

Provides payment solutions to industries in the Netherlands and


internationally. Hoofddorp, the Netherlands - based

Micro Focus International


plc

The Attachmate Group

$2,302

Oers Linux based operating system software, data transfer,


protection, and management system applications and support services.
Houston, Texas - based.

Microsoft Corporation

Mojang AB

$2,500

Develops games. Its games include Cobalt, Minecraft, and Scrolls.


Stockholm, Sweden - based.

Orange

Jazztel plc

$5,001

Provides telecommunications services to residential, corporate, and


wholesale customers primarily in Spain. London - based.

SAP America

Concur Technologies

$8,468

Provides integrated travel and expense management solutions for


companies worldwide. Bellevue, Washington - based.

TDC A/S

Get AS

$2,157

Provides cable television services in Norway. Oslo - based.

M&A transactions with consideration in excess of $1B or with unannounced transaction values

12

OTHER NOTABLE DEALS

(CONTINUED)

Q3 - 2014
BUYER

Premium Value M&A


TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Provides telecommunications services. The company oers fixedtelephony long-distance, broadband, and Internet services. The
company also provides dial-up access and broadband services, such as
email, Web content and hosting, blogs, and photo-blogs. Curitiba,
Brazil - based.
Provides telecommunications services. The company oers fixedtelephony long-distance, broadband, and Internet services. The
company also provides dial-up access and broadband services, such as
email, Web content and hosting, blogs, and photo-blogs. Curitiba,
Brazil - based.

Telefonica Brasil, S.A.

Global Village Telecom


(Holding) S.A.

$8,817

TIM Participacoes S.A.

Global Village Telecom


(Holding) S.A.

$9,222

Tingyi Cayman Islands


Holding Corp.

China Network Systems

$2,334

Provides cable television services in northern and southern Taiwan.


Taipei - based.

United Internet AG

Versatel AG

$1,244

Provides telecommunications and information technology services in


Germany. Berlin - based.

Zillow, Inc.

Trulia

$3,305

Provides tools to research homes and neighborhoods for consumers


through Web and mobile applications. San Francisco, California based.

M&A transactions with consideration in excess of $1B or with unannounced transaction values

12

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