Research shows smaller buyouts bounce back in 2010

January 11, 2011 — Fusion DigiNet

Source – Lyceum Capital and Cass Business School

The total value of smaller private equity buyouts completed during 2010 rose to over £2.5billion, a 150 per cent increase on 2009 levels, according to data from The UK Growth Buyout Dashboard.

The quarterly trend analysis of private equity transactions in the £10 million to £100 million segment produced by Lyceum Capital and Cass Business School shows 68 companies raised an estimated £2,504 million of buyout funding in 2010. This compares with 34 transactions and £1,045 million of funding during the previous 12 months.
The figures provide further evidence that increasing numbers of successful SMEs are seeking private equity investors’ capital and expertise to drive their post-recession expansion plans.

Commenting on the report, Andrew Aylwin, Partner at Lyceum Capital, said: “The long-term investment outlook is positive. There is a bed-rock of SMEs requiring capital to consolidate their performance and complete the transformation into more mature, high-growth enterprises. This growth will ensure the lower mid-market continues to be a highly attractive asset class for private equity investment that is capable of creating consistently strong returns for investors.”

To go to The UK Growth Buyout Dashboard click here

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FamilyFinds acquires Mamaloot

January 7, 2011 — Fusion DigiNet

FamilyFinds.com, an online daily deal site focused on services and experiences for families, has acquired Mamaloot – a daily deal site focused on families in the Chicago market.  Mamaloot will now operating under the FamilyFinds name.

“We are expanding across the country in a rapidly growing market, so the opportunity to add both a presence in a top market and experienced, passionate team members makes sense,” said Matt Coffin, chief executive officer, FamilyFinds.  “The team at Mamaloot had a similar idea when they launched as we did; provide great deals across local communities to the families that seek them out.”

“This marks the first of our growth expansion plans into key markets nationwide,” said Brian Barnum, president, FamilyFinds.  “Now reaching all of Los Angeles and Chicago allows us to provide millions of families with up to 90% off at places they shop, eat and play, as well as offer inspirational ideas on fun things to do with family.”

USA, Santa Monica, CA & Chicago, IL

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US information industry M&A report shows deal value and volume Up 36%

January 7, 2011 — Fusion DigiNet

Berkery Noyes has released its 2010 Information Market M&A Trends Report. The report analyses merger and acquisition activity in the US Information Industry in 2010 and compares it with activity in the three previous years.

Highlights

  • Transaction volume in 2010 surpassed 2009 by 36 percent, climbing to 2,046 transactions.
  • Transaction value has increased by 36 percent as well, with $112 billion in aggregate acquisition value.
  • The median revenue and EBITDA multiple both increased over 2009, with the revenue multiple rising to 1.8 and the EBITDA multiple to 11.2, a 29 percent increase over the 8.7 of 2009.

“Multiples have started to make a return to pre-crisis levels,” said James Berkery, CIO of Berkery Noyes. “There are more deals happening and there are higher valuations. While we’re not at the levels we saw in 2007, I think we’re well on the road to recovery.”

Strategic acquirers have been the most common acquirer in the industry, yet financially sponsored transactions rose 39 percent by value over 2009 while losing 2 percent in volume over 2009. This trend of larger financially sponsored transactions is further evidenced by two of the top seven deals by value this year being made by financial acquirers: Interactive data Corporation’s acquisition by Warbug Pincus and Silver Lake Partners for $3.2 billion and Visma ASA’s acquisition by Kohlberg Kravis Roberts & Co. for $1.9 billion.

Google was not only the most active buyer in the information industry in 2010, with 28 acquisitions, but was also the most active buyer from 2007 through 2010, with 48 transactions during that time.

The largest transaction in 2010 was Intel Corporation’s announced acquisition of McAfee, Inc., for $7.55 billion.

To view the full report click here:

USA, New York, NY

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Travel Leaders Group acquires Vacation.com

January 5, 2011 — Fusion DigiNet

Travel Leaders Group has acquired Vacation.com from Amadeus Americas. Vacation.com is North America’s largest vacation and cruise selling network in terms of locations with more than 5,100 travel agencies throughout the United States and Canada. Travel Leaders Group has total travel sales in excess of $6 billion, and owns well-known agency brands such as Travel Leaders, Tzell, Results! Travel, Nexion, Cruise Holidays and Cruise Specialists.

Travel Leaders Group CEO Barry Liben said that Alexandria (VA)-based Vacation.com will continue to operate as a stand-alone division led by its President Steve Tracas. Tracas will report directly to Liben. Vacation.com is the product of the 1998 acquisition and consolidation of 10 leading travel agency marketing organizations.

“Vacation.com brings excellent quality agencies, increased size and significant buying opportunities to Travel Leaders Group,” explained Michael Batt, Chair and Founder of Travel Leaders Group. “We exist solely to improve the operations and profitability of traditional travel agencies and agents and there is no question in my mind that by bringing together almost one third of North America’s agencies under one umbrella we can do even more for each and every agency and agent working within our brands and companies. We believe this is a good day for Travel Leaders, Vacation.com and the travel agency community in general and we very much look forward to working with the management teams from both Travel Leaders and Vacation.com to continue to improve all our agencies competitiveness, operations and profitability.”

USA, Eden Prairie, MN

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AutoTrader.com acquires HomeNet Automotive

December 28, 2010 — Fusion DigiNet

Automotive marketplace and consumer information website AutoTrader.com has acquire the assets of HomeNet Automotive, a lprovider of online inventory management and merchandising solutions for the automotive retail industry. The HomeNet assets will be acquired by a newly formed wholly-owned subsidiary of AutoTrader.com.

For dealers, incorporating HomeNet’s proprietary inventory management system into AutoTrader.com’s dealer tools will allow for easier and faster inventory management and merchandising online.  Consumers shopping for vehicles on AutoTrader.com will have access to better vehicle information, enhanced listings that include more photos and dealer comments, advanced search capabilities and more frequent updates and information about the cars they are shopping for and researching.

The closing of the HomeNet purchase is the third in a series of acquisitions AutoTrader.com has announced in recent months.  In September, AutoTrader.com announced the purchase of vAuto, the automotive retail industry’s provider of software tools for used vehicle management, pricing and inventory optimisation.  In October, AutoTrader.com announced its acquisition of Kelley Blue Book.

“With the closing of the HomeNet acquisition, AutoTrader.com has brought together an amazing set of companies, people and automotive marketing and merchandising solutions under one roof,” said AutoTrader.com President and CEO Chip Perry.  “We look forward to the next stage of our evolution as we work to continue serving auto manufacturers, auto dealers and auto shoppers through AutoTrader.com and these three outstanding companies.”

USA, Atlanta, GA & West Chester, PA

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eBay to acquire brands4friends for $200 million

December 20, 2010 — Fusion DigiNet

eBay has reached a definitive agreement to acquire all of the shares of brands4friends, Germany’s largest online shopping club for fashion and lifestyle, for cash at a transaction value of approximately $200 million (€150 million). The move is designed to strengthen eBay’s position as a leading online fashion destination in Europe. eBay already generates more than $5.4 billion in clothing, shoes and accessories merchandise volume annually.

The acquisition is expected to close in the first quarter of 2011. 

Germany’s largest online shopping club, brands4friends sells high-quality goods from renowned fashion and lifestyle brands at reduced prices to members through limited special offers on a daily basis. Founded in 2007, brands4friends has approximately 3.5 million members in Germany, and has held a wide variety of campaigns with more than 600 top brands, including international fashion brands such as Buffalo, Calvin Klein and Diesel. The company, which employs approximately 200 people, is headquartered in Berlin.

“We want to give our customers the best possible fashion experience online,” said Doug McCallum, Senior Vice President for eBay in Europe. “With the acquisition of brands4friends, we will enter the online shopping club market with an established and dynamic partner who has the expertise, relationships and passion to match our own ambition. We expect many eBay customers will enjoy great deals on international fashion brands by joining the brands4friends community.”

Online shopping clubs are a fast growing part of the online fashion market, and now account for approximately 20 percent of online fashion sales in Europe, according to eBay’s own research.

“eBay is the perfect partner for us,” said Sergio Dias, Chief Executive Officer of brands4friends. “We are able to bring our retail and brand competence and industry knowledge to eBay, and we can expect to benefit from eBay’s traffic and ecommerce experience to accelerate the growth of our shopping community.”

As part of the deal eBay will assume brands4friends’ equity interests in U.K. shopping club SecretSales.com and in Japan, brands4friends.jp.

USA, San Jose, CA & Germany, Berlin

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Livewire Mobile acquires FoneStarz Media Group

December 18, 2010 — Fusion DigiNet

US mobile music and content company Livewire Mobile, has acquired FoneStarz Media Group, a UK based mobile digital storefront and mobile content supplier.

The combination of the two companies provides a broad content-offering that includes application distribution, ringback, full-track music, video, advertising, ringtones, images and games. Furthermore, the acquisition expands Livewire Mobile’s market reach to more than 400 million subscribers at over 40 mobile operators in nearly 30 countries, providing one of the most comprehensive one-stop digital content solutions for carriers, handset manufacturers and other media companies entering the mobile content market.

Based in Cambridgeshire, United Kingdom, FoneStarz has a successful track record of retailing mobile entertainment content for mobile network operators. It manages cutting edge digital content services, from its proprietary merchandising and delivery platform for 11 mobile operators in eight countries around the world.

FoneStarz services are currently deployed with premier operators including Vodafone, Hutchison 3 and O2 in countries including the U.K., Ireland, Denmark, Sweden, Austria, New Zealand, South Africa and Egypt. It works with a number of other Tier 1 and 2 operators and has content aggregation agreements with handset manufacturers including Nokia, Sony Ericsson, Samsung and LG, and content licenses with more than 140 media companies, including Disney, Playboy, Turner, American Greetings and Manchester United.

Livewire Mobile plans to incorporate the FoneStarz platform into its InfuseTM integrated storefront solution for mobile operators, as well as its recently launched MediadromeTM direct-to-consumer music service.

Together, the companies bring extensive global experience and market-leading technical infrastructures, providing a platform for rapid strategic growth in new and existing territories and positioning them alongside firms such as Motricity, RealNetworks and Zed in the fast-growing mobile content market. The management team is headed up by Matthew Stecker, CEO, Livewire Mobile and Dave Moreau, CEO and founder of FoneStarz, who will become COO of the combined company. They intend to grow the combined business by exploiting its product set and extending services across six continents. 

“As we stated earlier this year, we refocused our company resources toward providing our global partners and customers with an innovative suite of products and end-to-end services,” said Mr. Stecker. “Now, with this combination of two complementary companies, we are creating an even stronger organization with a broadened product suite, improved service and support worldwide and increased cross-selling opportunities to an expanded customer base.”

Mr. Moreau added: “We spent some time looking for a partner that offered a strategic fit in terms of product roadmap and territorial expansion. Scale is vital in this fast moving, global market and we believe Livewire Mobile and FoneStarz together will be able to provide a preeminent digital solution for mobile network operators, handset manufacturers and media businesses.”

USA, Littleton, MA & UK, Cambridgeshire

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Market America to acquire Shop.com

December 15, 2010 — Fusion DigiNet

Market America, an Internet marketing and product brokerage company, announced today that it has entered into an agreement to acquire the business of online comparison shopping comparison business Shop.com. Financial terms of the transaction were not disclosed.

MarketAmerica.com and Shop.com will continue to operate as separate websites through a transition period.  Market America’s headquarters will remain in Greensboro, NC, while Shop.com’s facilities in Monterey and Pasadena, CA and London, UK will continue without disruption.  The combined entity will have in excess of 650 employees. The transaction is expected to be completed by year-end 2010.

“Together, Market America and Shop.com are creating a new ‘social shopping’ movement,” said James Ridinger, President and CEO of Market America.  “To date, no one has truly harnessed the power of technology to provide a high touch, personal shopping experience combined with the depth of selection available through instant search of the more than 43 million products in our database.  Our business model rewards customers at every stage – by making their shopping easier and more efficient, and rewarding them with cash back for shopping with us.  This unique strategy positions us for explosive growth and to compete head-to-head with the biggest, most dominant shopping sites on the Internet.”
“Market America and Shop.com are online shopping pioneers with distinct areas of expertise,” added Ken Goldstein, Chairman & CEO of Shop.com who will depart his current role and become a strategic advisor to Market America as part of the transition.  “By bringing our companies together, we are creating a game changing shopping experience with transformative potential to our customers, retailers, consumer brands and business partners.”

USA, Greenboro, NC

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Groupon rejects Google’s $6 billion offer

December 7, 2010 — Fusion DigiNet

According to numerous reports, Groupon has rejected a bid from Google of between $5 and $6 billion. Neither company is commenting on the story.

Groupon, which has raised around $170 million, is one of the fastest-growing VC backed companies ever. Forbes published an aticle in Augusted titled “Meet The Fastest Growing Company Ever“. Groupon’s annual revenues are reported at around $500 million. The All Things Digital blog reports that Groupon has attracted upward of $50 million in monthly revenue.

USA, Mountain View, CA & Chicago, IL

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Axel Springer’s public tender offer for all outstanding shares of SeLoger.com has been cleared

November 30, 2010 — Fusion DigiNet

The French Securities Regulator (Autorité des marchés financiers or AMF) has cleared the offer of Axel Springer for all outstanding shares of SeLoger.com, the leading French property classifieds portal. Axel Springer offers all shareholders of SeLoger.com EUR 34.00 per share in cash, valuing the company at a total of EUR 566 million.

The AMF will set the timetable for the public tender offer shortly. With the approval of the transaction by the French Competition Authority on November 3, 2010, the offer has become unconditional. 

Ralph BüchiRalph Büchi, President Axel Springer International at Axel Springer AG: “Now the decision is solely up to the shareholders of SeLoger.com. They have the opportunity to sell their shares at a price of EUR 34.00 per share and realize an attractive cash consideration.”

Büchi added: “We continue to believe that we can be a valuable shareholder for SeLoger.com. Axel Springer has considerable digital expertise, a reach throughout all major European markets and strong financial capabilities. We will therefore be able to support SeLoger.com in its further development both in France and abroad, in case the management team of the company should decide to pursue a strategy of internationalization.”

Axel Springer already holds a 12.4 percent stake in SeLoger.com acquired from a group of shareholders, including the founders Amal Amar and Denys Chalumeau as well as other members of the supervisory board and the management board.

Germany, Berlin and France, Paris

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