Internet Advertising Revenues Hit $7.3 Billion in Q1 ’11 Highest First-Quarter Revenue Level on Record According to IAB and PwC

Internet advertising revenues in the U.S. hit $7.3 billion for the first quarter of 2011, representing a 23 percent increase over the same period in 2010, according to figures released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC). This marks the highest first-quarter revenue level ever for the industry and a significant increase over last year’s first-quarter revenue level, which had been the highest on record to date.

“The consistent and considerable year-over-year growth we’re seeing demonstrates that digital media is an increasingly popular destination for ad dollars, and for good reason,” said Randall Rothenberg, President and CEO of the IAB. “As Americans spend more time online for information and entertainment purposes, digital advertising and marketing has emerged as one of the most effective tools businesses have to attract and retain customers.”

“The year-on-year 23 percent increase in first quarter revenues is not just impressive in its own right, but especially so when you take into account the fact that 2010 was a record-breaking year itself for Internet advertising revenue,” said David Silverman, a partner at PricewaterhouseCoopers LLP. “These numbers indicate that the interactive advertising field hasn’t simply bounced back since the recession; it’s growing with dynamic energy.”

The full report is issued twice yearly for full and half-year data, and top-line quarterly estimates are issued for the first and third quarters. Past reports are available at www.iab.net/AdRevenueReport.

USA, New York, NY

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VC Funding in the solar sector off to a Strong Start With Q1 Coming in at $658 Million

Mercom Capital Group, llc, a global clean energy communications and consulting firm, today released funding and merger and acquisition (M&A) activity in the solar sector for the first quarter of 2011.Venture capital (VC) funding in the solar sector came in at $658M in 25 deals, compared to $238M in the previous quarter. The trend was similar with M&A activity amounting to $1.4B in 18 transactions for Q1, compared to $266M in Q4 2010.

“Looking at the first quarter funding activities, it is clear that VC investor’s appetite for solar has not gone away. In fact, this was the best VC funding quarter since Q2 of 2010 and the second best quarter since Q4 of 2008,” commented Raj Prabhu, Managing Partner at Mercom Capital Group.The top five funding deals were $201M raised by BrightSource Energy, a concentrated solar power (CSP) company. MiaSole, a CIGS thin-film panel maker raised $106M; Alta Devices, a GaAs thin-film developer raised $72M; Solopower, a CIGS flexible thin-film maker, raised $51.6M; and Kiran Energy, a project developer raised $30M.

Thin film companies attracted the most funding with $283M raised in seven deals. CIGS was the most popular technology within thin films accounting for $196M in four deals. CSP companies raised $212M in three deals, followed by $84M raised by solar downstream companies in six deals.Top VC investors included Crosslink, Vantage Point, Convexa, Hudson Clean Energy and Kleiner Perkins.

In continuing with last year’s trend, VC arms of companies remained active in the sector, including Alstom, BP, GE, Chevron, Dow Chemical, Intel and Hanwha. California State Teachers’ Retirement System (CalSTRS), a pension fund, also invested.

Of the $9.8B announced in debt and other funding, Jinko Solar received $7.6B in credit from Bank of China.

For a complete list of solar transactions, visit: http://mercomcapital.com/cleanenergyreports.php

USA, Austin, TX

UK Buyout market registers strongest quarter in two years

Data from Lyceum Capital and Cass Business School’s UK Growth Buyout Dashboard shows that 23 smaller private equity buyouts worth an aggregate £828 million* completed between 1 January and 31 March 2011 – the highest volume and value seen in any single quarter during the past two years.

This quarterly trend analysis of private equity transactions in the £10 million to £100 million segment highlights a continuing upward trend and represents a strong start to the year.

The report’s authors say the figures reflect growing confidence and appetite amongst investors to support businesses which, having proven their resilience during the downturn, and are now well placed to harness emerging growth opportunities.

Number of investments

Whilst 11 transactions in the £10-25 million value range make up 48% of all mid-market ativity, the 12 deals completed in the £26-100 million range was a higher volume than has been seen any quarter during the previous two years .

Type of investments

Management buyouts (MBOs) continued to be the most prevalent transaction type in Q1 2011, accounting for 61% of all activity (14 of the 23 deals). However the data also illustrates that there has been a sharp rise in the number of secondary buyouts.

Eight SBOs completed – the highest volume of this type of deal in any quarter over the last two years and accounts for a third of all transations completed in Q1 2011.

The reports authors believe this rise was expected given the increased number of larger deals recorded and that the trend reflects the number of private equity houses continuing to rely on old-style intermediary-based deal sourcing, rather than research-led direct origination.

Only one public-to-private transaction was launched in the quarter, underlining the lack of appetite for de-listings within the mid-market.

This lack of interest is unlikely to improve given the recently announced proposals to change the Takeover Code.

Investments by industry

Technology, media, telecommunications (TMT) businesses attracted the most private equity investment in the quarter, with the seven deals completed in the sector accounting for 30% of all deals in Q1 2011.

This is a sharp rise in activity from previous quarters (Q4 2010: 3, Q3 2010: 2), continuing an underlying trend which saw the annual number of deals involving TMT businesses nearly treble from four in 2009 to 11 in 2010.

The other sector showing increased activity is retail and consumer, in which more deals were transacted (four) than in any other quarter over the past two years.

Trade, IPO and Secondary Exits

The first quarter of 2011 has seen the number of exits from private equity investments remain relatively steady with 11 deals completing in Q1 compared to an average of 10 over the previous four quarters.

Whilst trade dominated the buyer pool throughout 2009 and 2010, the first quarter of 2011 has seen this trend reverse, with the majority of exits (73%) being provided by eight secondary buyouts.

With just four exits through trade buyers, Q1 2011 has seen the lowest level of trade activity registered since Q4 2009.

The reports authors suggest that this trend reflects an increasing number of sponsors returning to market following the downturn looking to quickly deploy capital in mature private-equity backed assets.

Commentary

Commenting on the report, Andrew Aylwin, Partner at Lyceum Capital, said: “Optimism or pressure to invest? Whatever the reason, activity was up again in Q1. If this trend continues, we may see a hundred new deals this year, up from 68 last year and just 35 in 2009.

“But with prices on the rise, managers in the lower mid-market are working hard to understand investment risk, with deal processes drawn-out as a consequence.

“It’s too early to tell whether 2011 will yield a good vintage, but the market is clearly testing investment selection today with value-adding skills in the spotlight next.”

Scot Moeller, Professor in the Practice of Finance at Cass Business School, said: “It is notable that the first quarter’s activity in this lower middle market has been broader based than last year in terms of both industry sectors and size of deal.

“When combined with the consistently higher deal flow since early 2009, this should be a good indicator of continued strong deal flow in the next several quarters although the market is clearly still at a point where participants expect surprises.

“Particular strengths are currently in the technology sector, including software, as businesses gear up with the continuing improved outlook for the economy; these two sectors should continue to see increasing activity in 2011.”

For more information go to the The Cass/Lyceum Capital UK Growth Buyout Dashboard

*All figures for aggregate enterprise value of private equity investments are based on confirmed values from Experian’s CorpFin database and additional estimations by Lyceum Capital and Cass Business School where undisclosed.

JEGI releases its Media and Information M&A report for Q1 2011

Investment bank Jordan Edmiston Group, Inc. (JEGI) of New York has released its Media and Information M&A report for Q1 2011

Deal Value Rises; Number of M&A Transactions Relatively Flat

The overview is below. It can be read as a PDF on the JEGI website.

New York, NY March 31, 2011 – M&A transaction value for the media, information, marketing services and technology sectors reached $12 billion in Q1 2011, representing a 16% increase over Q1 2010. The first quarter of 2010 had seen an 83% surge in deal volume and a nearly seven time increase in transaction value over Q1 2009 levels. So, 16% growth in Q1 2011, off a large prior year base, reflects a healthy continuing M&A environment, according to The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com), the leading independent investment banking firm specializing in M&A advisory services across these core markets.

The interactive and technology markets accounted for an even greater share of activity, with the B2B and B2C Online Media & Technology, Marketing & Interactive Services, and Mobile Media & Technology sectors accounting for 75% of total deals in Q1 2011 vs. 70% in Q1 2010. The average deal size for these sectors rose as well, from $28 million in Q1 2010 to $47 million in Q1 2011.

Looking at the Top 10 Deals

The interactive markets accounted for 7 of the 10 largest deals of the quarter, including the only multi‐ billion dollar deal announced – eBay’s acquisition of GSI Commerce for $2.4 billion. The other six announced interactive deals in the top 10 included:

  • Walgreen acquired Drugstore.com, an online retailer of health and beauty products, for $409 million;
  • Tencent of China acquired RiotGames, a developer of premium online games, for $400 million;
  • Salesforce.com acquired Radian6, a social media monitoring company, for $326 million;
  • AOL acquired Huffington Post, an online news and opinion web site, for $315 million;
  • GSI Commerce acquired Fanatics, a network of sports e‐commerce sites, for $277 million; and
  • Nordstrom acquired HauteLook, a private, limited‐time e‐commerce site, for $270 million.

Interestingly, two of the largest transactions of the quarter took place in the consumer publishing market, which has been a relatively quiet sector over the past few years:

  • Hearst Corporation’s acquisition of Lagardère’s magazine portfolio for $651 million; and
  • Apax Partners’ acquisition of Yellow Media’s Trader Corp., a producer of consumer shopper publications, for $745 million.

The remaining deal in the top 10 for Q1 2011 took place in the fast‐growing healthcare market:

  • inVentive Health, owned by private equity firms Thomas H. Lee and Liberty Lane Partners, acquired i3, a pharmaceutical services company, for $400 million.

Looking Forward

JEGI Managing Director Michael Marchesano is upbeat about M&A activity in the Healthcare Information & Technology market, where deal value more than doubled in Q1 2011 vs. Q1 2010. In “Healthcare Information & Technology M&A” (http://bit.ly/HealthcareArticle), featured in JEGI’s March 2011 Client Briefing newsletter, Mr. Marchesano discusses new products and services that are driving change throughout this vibrant sector. These are spurred in part by a wave of upstart niche players that are developing new technologies and tools to capture and use data more productively. Mr. Marchesano expects M&A activity in this sector to ramp up in the years ahead, as major strategic players tap into new sources of efficiency and growth. Accordingly, JEGI has expanded its coverage of Healthcare Information & Technology, which is now shown separately in JEGI’s quarterly M&A table (on page 3 of this report – see the PDF of this release).

Overall, media, information, marketing services and technology executives reflect a positive outlook on growth. In fact, JEGI’s first annual Media Growth Survey, with insights from nearly 500 senior industry executives, revealed that more than 80% of them identified organic growth as the primary growth driver in the next 12 to 24 months.

M&A activity is also seen as a vital growth driver for larger companies: 81% of respondents at organizations with more than $250 million in revenue foresee making an acquisition in the next 12 to 24 months. Large companies don’t have a monopoly on M&A, as more than half of mid‐sized organizations also plan to make an acquisition in the near‐term. Review the complete report at: http://bit.ly/MediaGrowthTrendsReport.

Clouds hanging over the M&A market include continued hesitancy by the banks to lend on smaller transactions; lingering uncertainty about the economy, given the continuation of unemployment levels at 9+% in the U.S. and unrest in a number of states; and increasing turmoil in the Middle East and North Africa, as citizens rise up to overthrow their governments.

The good news is that liquidity has returned to the debt markets and volumes in the bank market tripled in 2010 vs. 2009 – from $75 billion to $233 billion, according to Dan Damon, Managing Director, GE Capital Markets, who spoke at JEGI’s Media & Technology Conference in January. Review Mr. Damon’s entire presentation at: http://bit.ly/GEDamonPresentation.

JEGI Activity Continues

JEGI completed three transactions in the quarter, including a high‐profile deal in the e‐commerce space: the sale of Journalism Online, an e‐commerce platform that helps publishers charge for content, to R.R. Donnelley. JEGI’s two other transactions included:

  • The sale of Wolters Kluwer’s Summers Press, a leading provider of safety and compliance information products, to Mancomm; and
  • The sale of Weaver Multimedia, a provider of integrated marketing solutions serving the convention, meeting, and visitor travel industries, to Miles Media.

JEGI expects continued strong activity in middle‐market M&A, as corporations look for high growth interactive, marketing services, mobile and technology assets with innovative business models. In parallel, many private equity portfolio companies that were acquired during the major buying cycle of the early and mid‐2000’s are expected to come to market over the next year. JEGI continues to have a robust and active pipeline and expects a number of noteworthy transactions to close in the remainder of 2011.

M&A Highlights

  • The b2b online media and technology sector saw a 39% decrease in the number of M&A transactions announced in Q1 2011 vs. Q1 2010, but a more than sixfold increase in deal value to $2.8 billion, led by eBay’s acquisition of GSI Commerce for $2.4 billion. Other notable Q1 transactions were Great Hill Partners’ acquisition of All Web Leads, an online lead generation company for the US insurance industry, Google’s acquisition of Next New Networks, an online video production company, and R.R. Donnelley’s acquisition of Journalism Online. KIT Digital, a leading global provider of video asset management solutions, completed four acquisitions totaling more than $110 million in the quarter, including KickApps, Kyte, Kewego, and Polymedia.
  • The b2c online media and technology sector was the most active in Q1 2011, with 78 transactions at a total value of $3.4 billion. M&A transaction volume increased 30% over Q1 2010, while deal value nearly quadrupled. The largest Q1 transactions included AOL’s acquisition of Huffington Post for $315 million; the acquisition of Fanatics by GSI Commerce for $277 million; Nordstrom’s purchase of HauteLook for $270 million; the acquisition by Chinese portal Tencent of Riot Games for $400 million; and Walgreen’s acquisition of Drugstore.com for $409 million. Other notable deals in the quarter included Visa’s acquisition of PlaySpan, a virtual goods company, for $190 million; AOL Europe’s acquisition of GoViral, a distributor of branded video content, for $96 million; France Telecom’s acquisition of 49% of Dailymotion, an online video sharing site, for $82 million; BBC Worldwide’s acquisition of Lonely Planet, an online travel guide publisher, for $67 million; and Match.com’s acquisition of Cupid.com, an online dating company, for $50 million.
  • M&A activity for the business‐to‐business media sector was nearly non‐existent in the first quarter of 2011, with only four deals completed at a total value of $15 million. This compared to 13 deals valued at $66 million in Q1 2010. In Q1 2011, Wolters Kluwer sold its Summers Press safety and compliance information products to Mancomm; Access Intelligence acquired OR Manager, a media company serving operating room executives, managers and doctors; and United Business Media sold Publican, a weekly magazine for the UK licensed trade, to William Reed.
  • The consumer magazine sector came to life in Q1 2011, with seven transactions at a total value of $1.4 billion. Two transactions drove the bulk of deal value in the quarter, as Hearst Corporation acquired Lagardère’s magazine portfolio for $651 million, and Apax Partners acquired the Trader Corp. division from Yellow Media for $745 million. Notably, Magic Johnson Enterprises and Ron Burkle’s The Yucaipa Cos. acquired Vibe Holdings from InterMedia Partners, and Dennis Publishing acquired Mental Floss, a bimonthly magazine for students obsessed with trivia.
  • The database and information services sector quieted in Q1 2011, recording 11 transactions for a total value of $384 million, compared to 19 transactions valued at $3.1 billion in Q1 2010. Notable transactions included Nielsen’s acquisition of MEMRB (The Middle East Market Research Bureau) for $82 million; the acquisition by Dawson Geophysical of TGC Industries, a seismic data company, for $157 million; and Blackbaud’s acquisition of Public Interest Data, a provider of data management services to nonprofits, for $17 million.
  • The education information, technology and training sector saw 12 transactions announced at a total value of $463 million in Q1 2011. While there were a similar number of transactions in Q1 2011 vs. the same quarter last year, transaction value for this sector decreased 74%, from $1.8 billion in Q1 2010. In Q1 2011, the most notable deals were completed by Pearson – the acquisitions of TutorVista, a provider of quality online tutoring, for $127 million and Education Development, a provider of education and training qualifications and assessment services, for $113 million.
  • The exhibitions and conferences sector saw six transactions at a total value of $34 million in Q1 2011, posting similar results to Q1 2010. United Business Media continued to be active on the international front, announcing the acquisition of two India‐based exhibitions and conferences businesses: SATTE, a travel exhibition company; and Famdent, a producer of dental events. Reed Exhibitions also made an international deal in the quarter – the acquisition of Mulitplus Fairs & Events, a Sao Paulo‐based organizer of ethanol manufacturing events.
  • Deal value more than doubled in the healthcare information and technology sector, led by inVentive Health’s acquisition of i3 for $400 million. Other notable deals in the quarter included two transactions by Elsevier – the acquisitions of Oncology Journal Portfolio, a series of journals that provide peer‐ reviewed research and articles, and Datong, a provider of drug decision support. Two private equity firms made platform acquisitions in the quarter: SFW Capital Partners acquired MD Buyline, a provider of information and analyses to healthcare services companies; and Webster Capital acquired Conisus, medical communication services to oncology pharmaceutical and biotechnology industries.
  • The marketing and interactive services sector was the second most active in the first quarter of 2011, with 60 transactions at a total value of $2 billion. Deal activity increased 13% over Q1 2010, while deal value declined 31%, as fewer larger transactions were announced. Notable Q1 transactions included Salesforce.com’s acquisition of Radian6 for $326 million; Teradata’s acquisition of Aster Data Systems, a data and analytics platform, for $263 million; and Adobe’s acquisition of Demdex, a data management platform. Other noteworthy deals included the acquisition of Sarvis, a provider of merchandising and headquarter sales services, by Advantage Sales & Marketing; Riverside Company’s acquisition of Pareto, a shopper marketing company that offers marketing execution solutions; and ITWP’s acquisition of Toluna, an online market research panel and survey software provider.
  • Mobile media and technology, which has been among the fastest growing sectors over the past few years, slowed in Q1 2011, with 23 deals announced at a total value of $469 million. These figures were down 15% and 37%, respectively, vs. Q1 2010. Mobile acquisitions are primarily of earlier stage, high‐ growth companies by corporations that are seeking growth in new markets and new product offerings. Few private equity firms have yet ventured into this market. In Q1, notable deals included: Concur’s acquisition of TripIt, mobile trip management software, for $120 million; HTC’s acquisition of Saffron Digital, a mobile content delivery service, for $49 million; and Motricity’s acquisition of Adenyo, a mobile marketing software company, for $100 million. Clear Channel Radio, Facebook, Olson, OpenText, Tremor Media and Verve Wireless were all active acquirers during the quarter.

About JEGI

The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading provider of independent investment banking services for the media, information, marketing services and technology sectors. Since 1987, JEGI has completed more than 500 high‐profile M&A transactions for global corporations; middle‐ market and emerging companies; entrepreneurial owners; and private equity and venture capital firms. For more information, visit http://www.jegi.com.

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Investments in green companies and technologies globally now total more than $2 trillion

A new report from Ethical Markets Media which tracks private investments since 2007 in green companies and technologies globally, says investments now total more than $2 trillion.

The Green Transition Scoreboard® (GTS) represents time-based, global research of non-government investments and commitments for all facets of green markets. This update of the GTS totals  $2,005,048,785,088 from 2007 to the end of 2010. This is significant because many studies indicate that investing $1 trillion annually until 2020 will accelerate the Green Transition worldwide.  The updated 2010 finding puts global investors and countries on track to reach the $10 trillion in investments goal by 2020.

Hazel Henderson, D.Sc.Hon., FRSA, former US government technology advisor and president of Ethical Markets Media said, “this new total is remarkable in spite of economic uncertainty.  It indicates that the global transition away from the 300-year fossil-fueled Industrial Era is accelerating toward the cleaner, greener, information-rich economies of the 21st century.”

Timothy Nash, M.Sc., Senior Advisor to Ethical Markets Media, adds, “This over $2 trillion total does not include nuclear, ‘clean’ coal or CCS, nor biofuels from food or agricultural sources, which we consider unsustainable.”

Rosalinda Sanquiche, Ethical Markets Media’s Executive Director and editor of the Green Transition Scoreboard® report, points out, “this startling amount does not include thousands of deals under $100 million, which we hope to include in future reports.  We have added and will continue to track our exclusive Corporate R&D sub-report and invite companies to alert us to any investments we may have missed.”

The full report is available at www.greentransitionscoreboard.com.

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Market Research Report – 2010 Private Equity in the Information Industry Merger & Acquisition Trends – Valuation Metrics up 53% from 2009

Berkery Noyes, a middle market investment bank, has released its 2010 Private Equity in the Information Industry M&A Trends Report.  The report analyses merger and acquisition activity in 2010 and compares it with activity in the three previous years.

Total transaction volume in 2010 increased by 24 percent over 2009 from 222 in 2009 to 275 in 2010, while the aggregate transaction value in 2010 increased by 57 percent from $16.21 billion to $25.45 billion.  The median revenue multiple also experienced a gain of 53 percent over 2009, from 1.3 to 2.0 in 2010.

“It’s encouraging that both the number of deals and the value are up from 2009, as are the revenue and EBITDA multiples.  I would expect this improvement to continue for the next 2 to 3 years,” said John Shea, Chief Operating Officer of Berkery Noyes.

Large, active financial buyers have focused their acquisitions on adding to existing portfolio companies rather than the acquisition of new, stand alone investments.  Indeed, over 80 percent of their transactions have been incorporated into existing investments, where across the acquisition landscape in the information industry, the number has been closer to 60 percent.Thoma Bravo was the most active financial acquirer in the information industry by volume, with 10 acquisitions: UPS Logistics Technologies, Computer Systems Company, Inc., Hershey Systems, Inc., LANDesk Software, Inc., Beyond Appraisal, Inc., SonicWALL, Inc., Double-Take Software, ManageSoft Corporation, PLATO Learning, Inc. and eWebHealth.

To view the full report click HERE

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US entertainment and media M&A activity has outpaced the overall US deal market in 2010

  • Content developers remain attractive investments
  • Expect increased activity in video games and social media sectors ample cash available to fuel future M&A

US entertainment and media (E&M) merger and acquisition activity outpaced the overall US deal market in 2010, according to PwC US. With the industry’s fast-paced shift to digital – and attractive levels of corporate cash reserves and private equity dry powder, PwC believes the catalysts are in place for more E&M deal activity during 2011.

In 2010, completed E&M deal volume increased slightly by 3% to 804 transactions, while total completed and disclosed deal value fell from $37.2 billion in 2009 to $33.5 billion in 2010. A primary driver of the increase in deal volume was Internet software & services (B2C) deals. PwC notes an increase in the percentage of announced transactions that did not disclose value, which could have an impact on the actual 2010 value trends. However, despite the decrease in announced deal value, the pipeline for E&M deals in 2011 points to continued improvement and a strong outlook, with more than 200 deals and $24 billion of deal value already announced and pending (including the recently approved NBC Universal joint venture between Comcast and GE).

Total entertainment & media deals by sector

Corporate deal activity remained at the forefront in 2010 with strategic buyers contributing 83% of total deal volume. However, with the decline in reported and completed corporate mega-deals (deals greater than $1 billion), total corporate E&M deal value decreased from 81% of disclosed deal value in 2009 to 59% in 2010.

Private equity solidified its presence within certain E&M subsectors with acquisitions of platform and strategic bolt-ons throughout 2010 (particularly within casinos and gaming, recreation and leisure, publishing and broadcasting). The number of private equity-backed deals increased from 126 in 2009 to 140 in 2010, while their announced value nearly doubled from $6.9 billion in 2009 to $13.7 billion in 2010. PwC sees the potential for an increased appetite for mega-deals by private equity firms.

“With almost $1 trillion of untapped committed capital worldwide, private equity is still primed to make significant acquisitions in the future,” Spiegel continued. “Look for a selection of E&M companies to re-evaluate existing business portfolios and accelerate their divestiture plans, as valuations continue to rebound and interest from private equity intensifies.”

More detail of PwC’s Global Entertainment and Media Outlook: 2010–2014 is available here.

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US Financial Technology & Information Industry M&A trends report shows deal value has grown by 27% since 2009

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

Both total transaction volume and value saw marked increases this year.  Total transaction volume increased by 30 percent from 183 in 2009 to 238 in 2010 and total transaction value increased by 27 percent from $16.14 billion in 2009 to $20.52 billion in 2010.

Capital Markets remained the largest segment by deal volume in 2010, yet only Insurance has made gains in each of the past four years.  Indeed, Insurance saw its largest growth in the last four years, rising 19 percent in deal activity over 2009.

Based on known transaction values, almost one third of 2010’s transactions took place at values between $7.4 and $54.6 million.  This figure is calculated on a logarithmic scale using the known transaction values and a Gaussian distribution.

“More deals have been done in the investment research vertical than any other,” said Christopher Young, a managing director in the Berkery Noyes FinTech group.  “Due to continued low trading volumes, the elimination of federal funds and the continued level of issuer lawsuits, it is anticipated that consolidation will continue into the near future.”

Morningstar, Inc. was the most active acquirer in the space, which serves as further evidence that the independent investment research industry is experiencing consolidation.

To view the full report click here

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Research shows smaller buyouts bounce back in 2010

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

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

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:

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