According to Berkery Noyes’ research, transaction volume increased four percent on a year-to-year basis and 37 percent relative to 2010. Total transaction value decreased 16 percent, from $76.73 billion in 2011 to $64.39 billion in 2012. However, this remained 49 percent above the industry’s aggregate deal value compared to 2010. The median revenue multiple improved slightly from 2.1x in 2011 to 2.3x in 2012, while the median EBITDA multiple declined from 11.9x to 10.8x. Oracle was responsible for two of the report’s top ten highest value deals in 2012. This included the acquisition of Taleo, a cloud based talent management provider, for $1.80 billion and the acquisition of Eloqua, a creator of marketing automation software, for $871 million.
In the mobile application subsector, the number of transactions increased 18 percent over the past year. Transactions involving mobile consumer applications increased 34 percent, from 121 to 162, whereas those pertaining to mobile business applications rose seven percent, from 158 to 169.
Meanwhile, volume in the E-Marketing & Search segment increased 44 percent from 2010 to 2011 and eight percent between 2011 and 2012. Much of this activity over the past two years highlights an interest in analytics and interactive marketing, as advertisers and others seek measurable results within targeted demographics. Accordingly, deal flow in the social media marketing subsector more than doubledsince 2011.
In addition, M&A in the Online and Mobile Industry was positively impacted by acquirer interest in enterprise collaboration. Such solutions include file sharing and email application tools, many of which contain a social component. Along these lines, Microsoft acquired Yammer for $1.20 billion, LinkedIn acquired SlideShare for $72 million, and Salesforce.com acquired GoInstant for $70 million.
M&A in the Communications segment, after rising 15 percent from 2010 to 2011, declined nine percent in 2012. The segment nonetheless saw strength in the mobile device management (MDM) subsector. MDM transactions nearly doubled over the past year, as a greater number of organizations begin to support personal devices in the workplace. “Given an increasingly mobile workforce, employees are clamoring for technology that will allow them to complete their jobs from any location while remaining connected with their colleagues,” added Mary Jo Zandy , Managing Director at Berkery Noyes. Mobile security also remains a concern when discussing bring your own device (BYOD) policies, which was highlighted by Citrix’s acquisition of Zenprise.
A copy of the ONLINE AND MOBILE INDUSTRY M&A REPORT FOR FULL YEAR 2012 is available at the Berkery Noyes website.
- First half 2012 mergers and acquisitions trend report for Private Equity in the Information Industry Posted on July 23, 2012
- Berkery Noyes releases first half 2012 M&A Report for the Media and Marketing Industry posted on July 18, 2012
- Berkery Noyes releases 2011 year-end Financial Technology & Information Industry M&A Acquisitions Report Posted on January 18, 2012
- Berkery Noyes releases 2011 year-end Online & Mobile Industry M&A Report Posted on January 18, 2012
- UK private equity investment in the £10M-£10OM market grows by 44% Posted on January 18, 2012
- Berkery Noyes Releases 2011 Year End Online & Mobile Industry Mergers and Acquisitions Report posted on January 12, 2012
- Berkery Noyes releases 2011 Year End Media Trends Report Posted on January 10, 2012
- AdMedia’s Industry Survey – 2012 Mergers and Acquisitions Prospects for Media, Marketing Services and Related Technology Firms Posted on January 10, 2012
- mergermarket Q3 Monthly M&A Insider report Posted on November 2, 2011
- Berkery Noyes releases third quarter 2011 M&A Update for the Media & Marketing Industry Posted on October 26, 2011
- Quarterly analysis of UK-headquartered private equity control deals in the £10 million to £100 million segment Posted on October 5, 2011
- Half Year Mergers and Acquisitions Trends Report for Private Equity in the Information Industry Posted on August 1, 2011
- Half Year M&A Trends Report for the Financial Technology and Information Industry Posted on July 19, 2011
- Berkery Noyes releases its Half Year M&A Trends Report for the Online & Mobile Industry Posted on July 18, 2011
- Survey of Private Equity fund managers indicates improved optimism – Rothstein Kass’s Private Equity in 2011 report Posted on May 30, 2011
- Internet Advertising Revenues Hit $7.3 Billion in Q1 ’11 Highest First-Quarter Revenue Level on Record According to IAB and PwC Posted on May 30, 2011
- VC Funding in the solar sector off to a Strong Start With Q1 Coming in at $658 Million From Mercom Capital Group – April 12, 2011
- UK Buyout market registers strongest quarter in two years From Lyceum Capital and Cass Business School’s UK Growth Buyout Dashboard – April 8, 2011
- JEGI releases its Media and Information M&A report for Q1 2011 – From Jordan Edmiston Group’s Media and Information M&A report – April 1, 2011
- Investments in green companies and technologies globally now total more than $2 trillion – From Ethical Markets Media‘S The Green Transition Scoreboard – February 22, 2011
- Market Research Report – 2010 Private Equity in the Information Industry Merger & Acquisition Trends – Valuation Metrics up 53% from 2009 – From Berkery Noyes Private Equity in the Information Industry M&A Trends Report – February 4, 2011
- US entertainment and media M&A activity has outpaced the overall US deal market in 2010 – From PwC US – January 31, 2011
- US Financial Technology & Information Industry M&A trends report shows deal value has grown by 27% since 2009 – From Berkery Noyes 2010 Financial Technology & Information M&A Trends Report – January 19, 2011
- Research shows smaller buyouts bounce back in 2010 – From Lyceum Capital and Cass Business School’s UK Growth Buyout Dashboard – January 11, 2011
- US information industry M&A report shows deal value and volume Up 36% – From Berkery Noyes 2010 Information Market M&A Trends Report – January 7, 2011