Berkery Noyes releases 2011 year-end Financial Technology & Information Industry M&A Acquisitions Report

January 18, 2012 — Fusion DigiNet
Berkery Noyes has released its 2011 Full Year Mergers and Acquisitions Trend Report for the Financial Technology & Information Industry.

The report analyses the sector for 2011 and compares it with similar activity in 2009 and 2010. This market includes information and technology companies in capital markets, payments, banking, insurance and other related financial services.

  • The most active acquirer between 2009 and 2011 was Thomson Reuters with 11 transactions.
  • Total transaction volume in 2011 increased by 2 percent over 2010, from 266 to 271 transactions.
  • Total transaction value in 2011 increased by 43 percent over 2010, from $20.52 billion in 2010 to $29.78 billion this year.
  • The median revenue multiple increased from 2.2x in 2010 to 2.6x in 2011, while the median EBITDA multiple decreased from 13.5x to 11.6x.

There has been a consistent improvement in the number of Capital Markets transactions, which was the only segment that saw an increase from 2010 to 2011. Indeed, the most active market segment tracked by Berkery Noyes between 2009 and 2011 was Capital Markets with 254 transactions, 100 of which were announced or closed in 2011. The segment’s transaction value for the year was $18.17 billion.

“At present we are seeing destructive creativity going on in a number of financial service sectors,” said Peter Ognibene, Berkery Noyes managing director. “For instance, smart phones have become digital wallets and are enabling a host of banking and other mobile commerce activities. There has also been an increase in consumer focus on wealth management strategies. And as always in times of turmoil and uncertainty – there is a desire for more precise and forward looking risk management tools, especially enterprise-wide.”

Click here to read the full report.

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Berkery Noyes releases 2011 year-end Online & Mobile Industry M&A Report

January 18, 2012 — Fusion DigiNet

Berkery Noyes has released its 2011 Full Year Mergers and Acquisitions Trend Report for the Online & Mobile Industry. The report analyses the sector for 2011 and compares it with similar activity in 2009 and 2010.

  • Total transaction volume in 2011 increased by 33 percent over 2010, from 1299 in 2010 to 1723 this year.
  • Total transaction value in 2011 increased by 55 percent over 2010, from $46.34 billion in 2010 to $71.95 billion this year.
  • The median revenue multiple rose from 1.9x in 2010 to 2.4x in 2011. The median EBITDA multiple increased from 11.4x to 12.5x.
  • The segment with the largest increase in volume in 2011 over 2010 was E-Marketing & Search with a 53 percent increase from 263 in 2010 to 403 in 2011.

“M&A activity for social media and analytics companies continues to grow as a broader range of players seek to capitalize on this evolution in media and marketing communications,” said Kathleen Thomas, Managing Director at Berkery Noyes. ”The world’s largest retailer, Walmart, entered the market in April with their $300 million acquisition of Kosmix Corporation, and Kosmix, now known as @WalmartLabs, has already completed four deals.”

  • Microsoft Corporation’s acquisition of Skype Technologies SA, a portfolio of Silver Lake Partners, was the largest transaction for 2011, with an acquisition price of $9.08 billion.
  • The most active acquirer in the Online & Mobile Industry was Google Inc. with 21 transactions (not including the acquisition of Motorola Mobility).
  • There were 192 financially sponsored transactions with an aggregate value of $11.93 billion, representing 11 percent of the total volume and 16 percent of the total value, respectively.

Total acquisitions involving social media and analytics companies rose 39% from 116 transactions in 2010 to 161 in 2011. The median revenue multiple for this sector between 2009 and 2011 was 5.5x.

Click here for a copy of the Full Year 2011 Online & Mobile Industry M&A Trend Report.

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Berkery Noyes Releases 2011 Year End Online & Mobile Industry Mergers and Acquisitions Report

January 12, 2012 — Fusion DigiNet
Berkery Noyes, an independent middle market investment bank, has released its 2011 Full Year Mergers and Acquisitions Trend Report for the Online & Mobile Industry. The report analyses the sector for 2011 and compares it with similar activity in 2009 and 2010.

Median revenue and EBITDA multiples increased from 2010 to 2011. The median revenue multiple went from 1.9x to 2.4x, a 26 percent rise, while the median EBITDA multiple increased from 11.4x to 12.5x. There were 1531 strategic transactions, an increase of 33 percent compared to 2010. Total volume in the Online & Mobile space increased 33 percent over 2010, from 1299 to 1723 transactions.

“M&A activity for social media and analytics companies continues to grow as a broader range of players seek to capitalize on this evolution in media and marketing communications,” said Kathleen Thomas, Managing Director at Berkery Noyes. ”The world’s largest retailer, Walmart, entered the market in April with their $300 million acquisition of Kosmix Corporation, and Kosmix, now known as @WalmartLabs, has already completed four deals.”

@WalmartLabs, which is now the retailer’s digital technology division, has been building what they call “the future of commerce” through their “Social Genome,” a database combining billions of tweets, YouTube videos, Facebook messages and more. They claim this will assist shoppers with making decisions through “a broad array of social commerce applications” and ultimately help Walmart achieve greater margins and sales.

Total acquisitions involving social media and analytics companies rose 39% from 116 transactions in 2010 to 161 in 2011. The median revenue multiple for this sector between 2009 and 2011 was 5.5x.

A copy of the Full Year 2011 Online & Mobile Industry Mobile Industry M&A Trend Report is available at the Berkery Noyes website.

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Berkery Noyes releases 2011 Year End Media Trends Report

January 10, 2012 — Fusion DigiNet

2011 Key Highlights

  • The largest announced transaction for 2011 was West Australian Newspapers’ acquisition of Seven Media Group, a portfolio company of Kohlberg Kravis Roberts & Co., for $4.15 billion.
  • The segments with the largest disclosed median enterprise value multiples for 2011 were Broadcasting with 3.8x revenue and Internet Media at 17.5x EBITDA.
  • There were 174 fi nancially sponsored transactions with an aggregate value of $11.05 billion, representing 12 percent of the total volume and 20 percent of the total value, respectively.

2011 Key Trends

  • Total transaction volume in 2011 increased by 15 percent over 2010, from 1225 in 2010 to 1409 this year.
  • Total transaction value in 2011 increased by 41 percent over 2010, from $38.31 billion in 2010 to $54.12 billion this year.
  • The median revenue multiple rose from 1.5x in 2010 to 1.9x in 2011. The median EBITDA multiple moved slightly from 10.4x to 10.6x.
  • The segment with the largest increase in volume in 2011 over 2010 was Marketing with a 29 percent increase from 332 transactions in 2010 to 428 transactions in 2011.

M&A Market Overview

  • Berkery Noyes tracked 3572 transactions between 2009 and 2011, of which 1013 disclosed fi nancial terms, and calculated the aggregate transaction value to be $119.95 billion. Based on known transaction values, we project the value of the 2550 undisclosed transactions to be $25.33 billion, totaling $145.27 billion worth of transactions tracked over the past three years.
  • The largest transaction tracked by Berkery Noyes between 2009 and 2011 was Comcast Corporation’s acquisition of NBC Universal, a subsidiary of General Electric Company for $22.85 billion, which was announced in 2009 and closed in 2011.
  • The most active acquirer by volume in the Media and Marketing industry between 2009 and 2011 was Publicis Groupe SA with 39 transactions, 24 of which were announced or closed in 2011.

Visit the Berkery Noyes website to download the full report

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AdMedia’s Industry Survey – 2012 Mergers and Acquisitions Prospects for Media, Marketing Services and Related Technology Firms

January 10, 2012 — Fusion DigiNet

AdMedia Partners has released its latest industry survey, “2012 Mergers and Acquisitions Prospects for Media, Marketing Services and Related Technology Firms.’

The report reveals the viewpoints of buyers and sellers regarding 2012 valuations, advertising spending, M&A activity, and key trends affecting all industry participants, such as the changing nature of content delivery, consumption and monetization.

Respondents were generally optimistic about prospects for their industries and their own businesses in the year ahead, and expect that strong M&A activity in 2011 will continue into 2012. They believe there will be an increase in M&A activity driven by strategic buyers with historic amounts of cash on their balance sheets, private equity firms with large amounts of uninvested capital and changing industry dynamics.

Specific survey findings include:

  • Fifty-nine percent of respondents expect to seek an acquisition, up markedly from last year when 40% had the same expectation.
  • Highlighting the fact that significant capital is sitting on the sidelines, 55% of respondents who anticipate making an acquisition expect to fund using existing cash reserves; in addition, 43% expect to raise outside equity (e.g., from a private equity firm) and 27% plan to use debt financing.
  • Almost half of respondents (48%) anticipate contemplating the sale of their company and/or subsidiary operation in 2012, a significant increase over the 36% who expressed this opinion in 2011.
  • Approximately three out of four respondents anticipate that M&A by strategic buyers will be up in 2012.
  • Almost half of respondents anticipate that M&A by financial buyers will be up in 2012.
  • The most popular areas of expansion interest within the services sector were analytics, social and mobile. User-generated content and mobile were hottest topics for content respondents.
  • Respondents predict that valuations will remain strong in 2012, particularly for mobile marketing, social marketing, and digital media firms.

Visit the AdMedia Partners website to download a full copy of the report.

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Wolters Kluwer Health acquires Medknow

December 7, 2011 — Fusion DigiNet

Wolters Kluwer Health has acquired Medknow PVT Ltd., a Scientific, Technical & Medical journal publishing operation headquartered in Mumbai, India and one of the largest open access publishers in the world. Terms of the deal were not disclosed.

“Research is changing in the developing world with clinicians and researchers looking for more access to locally-written content that is peer-reviewed and accessible via open platforms,” said Karen Abramson, President & CEO, Wolters Kluwer Health, Medical Research. “Our acquisition of Medknow aligns with our strategy of continuing to invest in providing the latest, most trusted information to our customers around the world to help them fuel discoveries and enhance patient care.”

Founded in 1977, Medknow has a strong portfolio of more than 155 journals and offers much of its content electronically. The company has strong market share among journals published in India and also has a growing presence in Asia Pacific and the MEA region. In addition to its print and electronic journal content, the company provides an electronic peer-review system for authors and editors, ensuring high quality clinical research. The deal will enable Wolters Kluwer Health to accelerate advances in the open access arena. It also furthers the company’s growth strategy of continued investment in international expansion in key emerging markets across the globe.

USA, Philadelphia, PA & India, Mumbai

 

 

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Publicis Groupe acquires Gomye

December 7, 2011 — Fusion DigiNet

Publicis Groupe has acquired 100% of Gomye, a full service digital agency providing integrated and interactive marketing services, with offices in Beijing as well as Chengdu and Chongqing, two rapidly growing major cities in western China. Gomye will be rebranded to become Publicis Modem Beijing (the digital arm of Publicis Worldwide in Beijing) and Publicis Modem Chengdu. The agency’s 51 staff members will be folded into Publicis’ local team. Its CEO, Alan Yang, will become Managing Director of Publicis Modem Beijing and Publicis Modem Chengdu, and will report to the CEO of Publicis Beijing.

Coupled with the acquisition of Shanghai agency Wangfan earlier this month, the acquisition of Gomye, which remains subject to the approval of the relevant authorities, further emphasizes Publicis Worldwide’s strong commitment to building leading digital capabilities across China.

Founded in 2003, Gomye’s superior digital expertise, coupled with its leading position in Chengdu and Chongqing, ideally place the agency to benefit from the strong growth potential of China’s most important western cities. Following a period of investment in the coastal metropolises of Beijing, Shanghai and Guangzhou, China’s 2011-2016 Five Year Plan, approved inMarch 2011, gives priority focus to developing the country’s vast interior. Chengdu - the capital city of Sichuan province — and its sister city Chongqing are among the economic, transportation and communications hubs designated for massive investment and rapid growth. Gomye’s clients includes Vanke Real Estate (China’s largest residential developer), movie and media company Huayi Brothers Media Group, liquor company Wuliangye Yibin, China Mobile and China Telecom.

This is the latest in a series of China agency acquisitions for Publicis Groupe that includes Wangfan (November 2011), Genedigi (June 2011), Dreams (May 2011), Interactive Communications Ltd (February 2011), and Eastwei Relations (November 2010).

“Acquiring Gomye is a particularly important move for us. It not only further strengthens our digital capabilities in Beijing but also gives us the critical ability to offer our clients significant digital expertise in the booming cities of Chengdu and Chongqing” commented Jean-Yves Naouri, Publicis Groupe COO and Chairman of China Publicis Groupe.

France, Paris & China, Beijing

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Hearst Corporation completes the acquisition of the majority of Hachette China operations

December 6, 2011 — Fusion DigiNet

Hearst Corporation has completed the acquisition of the majority of the Hachette China operations. The remaining operations, which include a joint venture with Marie Claire, are expected to conclude in the near future. This will mark the final portion of Hearst’s overall transaction with Lagardère SCA to acquire the company’s nearly 100 titles in 14 countries outside of France, including the U.S.

The acquisition includes most of Hachette’s magazine-related activities in China and oversight of seven titles, including global media superbrand ELLE, as well as Car and Driver, Woman’s Day andPsychologies.

In a joint statement, Hearst Corporation CEO Frank A. Bennack, Jr., and Duncan Edwards, president and CEO, Hearst Magazines International, said, “We’re very pleased to have finalized our acquisition in China and look forward to working with our Chinese publishing partners to produce great magazines and expand our existing portfolio of brands in this very important market.”

As a result of the transaction, Hachette China will change its name to Hearst Magazines China effective immediately.

USA, New York and China, Beijing

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Renren sells online travel booking business eLong to Expedia

November 21, 2011 — Fusion DigiNet

Chinese social networking internet platform Renren has sold its investment in online travel booking business eLong to Expedia for approximately $72.4 million, or $23 per ADS.

“We’re pleased to have an opportunity to increase our investment in eLong as we see China as a key market in our efforts to expand internationally,” said Dara Khosrowshahi, President and Chief Executive Officer of Expedia. “We have been very happy with the strategic and operational progress made by eLong and look forward to many more years of success.”

“Our early investment in eLong helped us build mutually beneficial commercial ties as well as generate strong returns for our shareholders. Renren and eLong will continue to work on a number of joint initiatives, including Nuomi hotel group-buy, one of the largest hotel group-buy sites in China. We will continue this strong relationship with eLong and deliver more popular products together moving forward,” commented Joseph Chen, Chairman and Chief Executive Officer of Renren.

“Renren will continue to be a valued business partner to us, and we look forward to future cooperation with Renren,” said Guangfu Cui, eLong’s Chief Executive Officer.

China, Beijing

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Rakuten to Acquire Kobo US$315 million in cash

November 9, 2011 — Fusion DigiNet

Rakuten is to acquire Kobo for US$315 million in cash. The transaction is expected to close in Q1 2012.

Kobo was founded by and spun out of Indigo, the largest book, gift and specialty toy retailer in Canada, in December, 2009. Since that time, Kobo has become a fierce competitor in the eBook marketplace, with a family of innovative eReaders, a wide range of eReading apps, one of the largest eBook catalogues, an innovative social platform and retail partners around the globe.

The acquisition marks a major step forward for Rakuten, one of the world’s top 3 e-commerce companies by revenue, as it continues to expand its B2B2C borderless e-commerce business globally, by adding an ecosystem to provide downloadable media products to consumers, starting with eBooks.

Hiroshi Mikitani, Chairman and CEO of Rakuten, commented on the acquisition, “We are very excited about this next step. Kobo provides one of the world’s most communal eBook reading experiences with its innovative integration of social media, such as Facebook and Twitter; while Rakuten offers Kobo unparalleled opportunities to extend its reach through some of the world’s largest regional e-commerce companies.

Upon closing the acquisition, Kobo will continue to maintain its headquarters, management team and employees based in Toronto, Ontario.

Japan, Tokyo & Canada, Toronto

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