InMobi receives a massive £200M investment

InMobi, the independent mobile ad network, is to receive a massive $200 million investment from SOFTBANK Corp. The funding will take place in two tranches- $100 million in September 2011 followed by an equivalent tranche in April 2012.

Softbank joins existing investors Kleiner Perkins Caufield & Byers and Sherpalo Ventures. The $200 million investment, one of the largest to date in the mobile internet space , will help the company create value across the mobile ecosystem globally through advertising, mobile payments using SmartPay™, and HTML5 rich media production and distribution using the recently acquired Sprout™ platform.

Naveen Tewari, Founder & CEO of InMobi, commented: “The size of the investment and quality of investor validate the enormous potential in mobile today and strengthen our role in helping the industry evolve. We have already established ourselves as a leader in mobile advertising on every continent. This is just the beginning. With a global leader like Softbank behind us, we are now well positioned to fully capitalize on the opportunity before us through substantially increased product innovation, deeper market penetration, and acquisitions across the mobile ad value chain.”

“I am delighted at this opportunity to partner with InMobi, one the world’s largest mobile ad networks”, said Masayoshi Son, Chairman and CEO of Softbank. “I hope the partnership with InMobi, a fast-growing startup with significant mobile expertise and an outstanding technology platform; will further accelerate the pace of development in the mobile Internet space globally. We believe this partnership will help Softbank become the No. 1 Internet company in Asia and I look forward to working with the InMobi team.”

This partnership will provide Softbank and InMobi with opportunities to further explore global scale collaboration in the fast growing mobile ad market. It is also expected to generate further synergies between InMobi and Softbank, given the significant number of prominent Asian Internet companies in Softbank’s investment portfolio.

USA, San Mateo, CA & Japan, Tokyo

IAC’s Match.com invests in Chinese matchmaking site Zhenai

Match.com, an operating business of IAC, has acquired a 20% interest in Zhenai, a provider of online matchmaking services in China. Terms of the deal were not disclosed.

Launched in 2005 by Dr. Song Li, Zhenai provides integrated Internet and telephone matchmaking services to China’s rapidly growing single population who are looking for long-term relationships.  Zhenai has established a large and growing user base of over 30 million registered members that have the ability to create their own personal profiles, search or browse for member profiles, and communicate with members through the Zhenai.com website.  Most distinctly, Zhenai commands especially high subscription rates due to subscribers’ access to over 1000 professional matchmakers at Zhenai’s call centers who are available to provide subscribers with advice and consultation throughout the dating process.

“Given the rapid growth in China’s online personals market, we felt that Zhenai was the best opportunity for Match.com to further expand our global footprint by partnering with a local market leader,” said Greg Blatt, IAC, CEO. “With a strong management team led by Founder, Chairman, and CEO Dr. Song Li, we believe that Zhenai will continue to flourish as the Chinese online personals market expands and we are excited for the many opportunities that this investment brings.”

“We are thrilled to have the global leader in online dating join us as a strategic investor,” said Zhenai founder and CEO Dr. Li. “We look forward to leveraging their vast knowledge in this arena to continue to innovate and develop new services to meet the growing demand for online personals in China.”

Cowen Latitude acted as the exclusive financial advisor to Zhenai on the transaction.

USA, New York, NY & China

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FriendFinder Networks acquires BDM Global Ventures

FriendFinder Networks an internet and technology company providing services in the expanding markets of social networking and web-based video sharing, has acquired BDM Global Ventures Ltd., the company which owns the operations of JigoCity, for a combination of stock and warrants.  The merger consideration consists of approximately 1.6 million shares of FFN common stock and approximately 6.4 million FFN warrants with exercise prices ranging from $5.00-$18.00 per share.  Assuming the cashless exercise of all the warrants at the highest exercise price, the merger consideration will be approximately $65 million.

JigoCity is a global social commerce organisation providing daily deals. They have 150 employees and provide services in around 20 cities and offices in Australia, Hong Kong, Singapore, Malaysia, Taiwan, China,South Korea, Brazil and Los Angeles. The company has plans to expand into additional countries by year end. JigoCity generated revenue of approximately $600,000 in July and approximately $1.1 million in August and has grown its user base to over 1 million members.

JigoCity is led by an experienced management team including Founder and Chief Executive Officer Tony Bobulinski, Founder and Chief Marketing Officer Michael Dorman and Founder and Chief Strategy Officer Joshua Mallamud. Following the acquisition, JigoCity will retain its brand identity while benefiting from FriendFinder Networks’ website traffic and user base. JigoCity will remain based in Los Angeles, CA with its Asia Regional Headquarters in Shanghai, China.

Marc Bell, Chief Executive Officer of FriendFinder Networks Inc. said, “We are expanding into today’s rapidly growing social commerce environment and we are very excited about the new possibilities this acquisition presents. Not only are we acquiring a growing and successful social commerce company, we believe we are gaining an additional avenue to monetize our foreign markets. China and the Asia-Pacific region represent one of the fastest growing areas of the world in terms of economic growth, internet usage and middle and upper class consumers. In addition, we believe this acquisition demonstrates the innovative ways we continue to leverage our large user base and the web traffic generated by our network of websites.”

USA, Sunnyvale, CA, Los Angeles, CA & China, Shanghai

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LivingSocial to acquire Korea’s TicketMonster

LivingSocial has signed a definitive agreement to acquire TicketMonster Inc., a social commerce website in South Korea.  Founded in 2010, TicketMonster offers daily and instant deals, travel packages, and events to more than 2 million members in Korea and Malaysia.

“TicketMonster is one of Korea’s most recognized and trusted brands in the nascent daily deal industry, and we are excited to bring them into the LivingSocial family,” said Tim O’Shaughnessy, CEO and co-founder of LivingSocial. “TicketMonster and LivingSocial share the same culture of innovation, customer focus and fun, and we believe that the benefits we bring to consumers can be extended to other markets in Asia and around the world.”

Following regulatory review and approval, the acquisition of TicketMonster will bring the total number of countries LivingSocial operates in to 23.  Other countries in Asia with LivingSocial operations include the Philippines, Thailand and Indonesia, through the Ensogo and DealKeren acquisitions announced earlier this summer.

“Like LivingSocial, TicketMonster has always focused on providing great values to our members while helping our merchant partners reach new, loyal customers,” said Daniel Shin, CEO of TicketMonster.  “Joining LivingSocial will give TicketMonster the resources, scale and reach to bring our business to the next level across the region while providing even better services for our customers.  We believe that this deal will advance the interests of our merchants, our members, and all Korean consumers.”

Terms of the deal were not released.  After closing, TicketMonster’s 600 employees will become part of the LivingSocial team.

USA, Washington & South Korea

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Half Year Mergers and Acquisitions Trends Report for Private Equity in the Information Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for Private Equity in the Information Industry.

The report analyses merger and acquisition activity in the private equity market over the first half of 2011 and compares it with activity in the four previous sixth-month periods. Berkery Noyes includes in this report transactions made by financially sponsored acquirers within the Information Industry, including purchases made by subsidiaries or platforms of private equity firms.

Berkery Noyes data shows that transaction volume and aggregate value rose considerably over the second half of 2010.  Transaction volume gained 11 percent in the first half of 2011, rising to 171, while value rose a considerable 21 percent in the first half, hitting $11 billion.

“The data shows that the private equity market continues to improve in the number of completed deals from the trough of 2009,” said John Shea, COO of Berkery Noyes. “The upward trend has been lumpy, however, and will probably continue that way for some time.”

The report also highlights the activity of Thomas H. Lee Partners within the information industry this half as the most active financial acquirer, with 10 acquisitions.  Thomas H. Lee Partners also announced the highest valued transaction this half, the pending acquisition of Acosta, Inc., a subsidiary of AEA Investors LP, for $2 billion.

A copy of the First Half 2011 Private Equity Industry M&A Report is available here.

USA, New York

 

Half Year M&A Trends Report for the Financial Technology and Information Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for the Financial Technology and Information Industry.

The report analyses merger and acquisition activity in the Financial Technology and Information market over the first half of 2011 and compares it with activity in the four previous sixth-month periods. This market includes information and technology companies in capital markets, payments, banking, insurance and other related professional financial services.

Berkery Noyes data shows that while total transaction volume for the period remained largely unchanged, transaction value nearly tripled, jumping from $7.0 billion in 2nd Half 2010 to $19.5 billion this period. The 187 percent increase can be attributed primarily to Deutsche Borse Group’s announced merger with NYSE Euronext for $12.4 billion.

Fiserv, Inc., a leading provider of financial technology solutions, was the most active acquirer in 1st Half 2011, with four purchases: CashEdge, Inc., Credit Union On-Line, Inc., Mobile Commerce Ltd, and Maverick Network Solutions.

For the full two-and-a-half period covered by the report, Morningstar, Inc., was the sector’s most active acquirer. The investment research and financial news provider made nine acquisitions.

A copy of the First Half 2011 Financial Technology and Information Industry M&A Report is available here.

USA, New York

 

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Berkery Noyes releases its Half Year M&A Trends Report for the Online & Mobile Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for the Online & Mobile Industry.

The report analyses merger and acquisition activity in the segment across 1st Half 2011 and compares it with activity for the four previous sixth-month periods from 2009-2010.

According to Berkery Noyes research, the Online & Mobile Industry’s robust growth over the past two and a half years continued across the last six months. Total volume in 1st Half 2011 increased by 23 percent over the previous six-month period, from 643 transactions to 788. Total transaction value increased even more significantly, climbing from $28.5 billion in 2nd Half 2010 to$43.3 billion in 1st Half 2011, a 52 percent jump.

Price multiples rose in step with this increasing activity, with 1st Half 2011 Online & Mobile transactions commanding a median EBITDA multiple of 15.3 and a revenue multiple of 2.1. Both of these numbers represent 30-month highs for the segment.

Google, Inc. remained acquisitive in the sector, purchasing 11 companies over the first half of the year, bringing its two-and-a-half year total to 39. The firm’s most recent purchases represented a wide range of companies and technologies in the Online & Mobile sector, including social network analytics, search engines, and messaging services.

The largest transaction during 1st Half 2011 was Microsoft Corporation’s announced acquisition of Skype Technologies SA from an investor group led by Silver Lake Partners for $9.08 billion.

A copy of the First Half 2011 Online & Mobile Services Industry M&A Report is available at the Berkery Noyes website.

USA, New York

LivingSocial acquires Ensogo, DealKeren and GoNabit

Social commerce site  LivingSocial has acquired Ensogo, a shopping deal site in Thailand and the Philippines; DealKeren, an Ensogo company based in Indonesia; and GoNabit, a daily another deal business with a presence in four Middle Eastern countries. Terms of the deals were not released.

These three acquisitions bring the total number of countries in which LivingSocial operates to 21. Ensogo, with members in the Philippines, Thailand and Indonesia, marks the first LivingSocial acquisition in Asia.

“As with previous acquisitions, LivingSocial has again chosen to align with local companies that possess similar values and ways of doing business,” said Tim O’Shaughnessy, CEO and co-founder, LivingSocial. “We are excited to enter the dynamic Asian market and our presence in the Middle East and the Netherlands further strengthens our strategic global efforts to bring LivingSocial values to members across the globe.”

Launched in June 2010, Ensogo is a social shopping website in Thailand, Philippines, and Indonesia and currently serves more than 800,000 members. Ensogo is backed by Rebate Networks, an international VC specialising in the social commerce space.

GoNabit was co-founded by Dan Stuart and Sohrab Jahanbani in January 2010 and is based in United Arab Emirates. The site also presents offers, suitable for children and parents alike, with Dubai Family, as well as travel-specific deals through GoNabit Getaways. In addition to being the first group-buying site in the Middle East/North Africa, GoNabit is the first company of its kind to offer deals in Arabic. It has members in Abu Dhabi, Amman, Dubai, Beirut, Cairo and Sharjah Ajman.

USA, Washington DC, Thailand, Philippines and Indonesia, & United Arab Emirates

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Perfect World to acquire online game developer Cryptic Studios from Atari

Perfect World, a leading online game developer and operator based in China, is toacquire Cryptic Studios, a California-based online game developer from Atari, the sole shareholder of Cryptic Studios. Perfect World will pay approximately €35 million in cash, subject to working capital and other adjustments.

“We are very pleased to sign the agreement to acquire Cryptic Studios,” commented Mr. Michael Chi, Chairman and Chief Executive Officer of Perfect World. “This strategic acquisition will add attractive game titles to our portfolio, which will help us further penetrate into the U.S. and global online game markets.  More importantly, Cryptic Studios’ highly reputable development team and its technology platform will further strengthen our well-established R&D capabilities.  We deem this as another noteworthy achievement of our global expansion efforts.”

“With the acquisition by Perfect World, Cryptic has found a strong platform for continued expansion into free to play business model and growth in the global marketplace,” said Jim Wilson, CEO of Atari. “The divestiture of Cryptic is in line with Atari’s continued focus on key owned and third-party strategic franchises and expansion into emerging game platforms.”

China, Beijing & USA, Los Gatos, CA

 

 

Survey of Private Equity fund managers indicates improved optimism – Rothstein Kass’s Private Equity in 2011 report

Global professional services firm Rothstein Kass, has published “Private Equity in 2011,” a sector trends report that features the findings of an Internet survey of 207 private equity fund managers. Conducted in January 2011, the survey covered issues ranging from fundraising intent to regulatory concerns.  Sixty-five percent of managers participating worked at funds with assets under management (AUM) below $500 million, with 35 percent indicating AUM in excess of $500 million.

Among notable findings, nearly 80 percent of respondents indicated that there will be more attractive investment opportunities in 2011 than in 2010. Meanwhile, 67 percent suggested that there will be increased IPO activity by private equity portfolio companies this year. While a more stable economy and thawing capital markets are contributing to a general sense of optimism, managers polled also acknowledged challenges ahead. Roughly 45 percent of respondents indicated that the credit crisis would continue into 2012 or beyond. Nearly 86 percent agreed that provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act will increase compliance costs for private equity funds.

Read the report here

USA, Roseland NJ

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