jegi 2014 m&a overview

JEGI Press Release

Adam Gross, Chief Marketing Officer

212‐754‐0710; [email protected]

www.jegi.com

JEGI 2014 M&A Overview

M&A Surges in 2014 to Pre‐Crisis Levels, Driven by Mega Deals

New York, NY January 6, 2015 – 2014 saw a return to pre‐financial crisis levels for mergers and

acquisitions across the media, information, marketing and technology sectors, with 1,481 M&A

transactions announced for a total value of $128.3

billion. Deal volume increased by a modest 6%

over 2013, but deal value nearly doubled against

2013’s $66.7 billion, due in large measure to mega

transactions like Facebook’s $19.7 billion acqui‐

sition of mobile messaging app WhatsApp. And,

with strong Q4 activity and an active M&A

pipeline, 2015 is likely to continue the 2014 pace,

according to The Jordan, Edmiston Group, Inc.

(JEGI) (www.jegi.com), the leading independent

investment bank specializing in these core markets.

Marketing Services & Technology was the most

active sector in 2014, with 602 transactions worth

$39.7 billion, accounting for 41% of total deal

volume and 31% of value for the year. Healthcare Information & Technology was the distant runner‐up,

with 234 transactions totaling $27.9 billion in value. Mobile Media & Technology was the third sector to

surpass $20 billion in value in 2014, coming in at $24.7 billion for the year, primarily due to the

Facebook/WhatsApp transaction.

Industry SectorNo. of

Deals

Value

(millions)

No. of

Deals

Value

(millions)

No. of

DealsValue

B2B Online Media & Technology 57 $601 65 $2,898 14% 382%

B2C Online Media & Technology 219 $6,197 175 $15,014 (20%) 142%

Business‐to‐Business Media 34 $452 38 $3,156 12% 598%

Consumer Magazines 37 $1,703 31 $1,603 (16%) (6%)

Database & Information Services 69 $6,029 70 $6,938 1% 15%

Education Information, Technology & Training 81 $6,954 72 $5,354 (11%) (23%)

Exhibitions & Conferences 64 $3,751 53 $1,106 (17%) (71%)

Healthcare Information & Technology 209 $10,458 234 $27,866 12% 166%

Marketing Services & Technology 478 $23,203 602 $39,716 26% 71%

Mobile Media & Technology 145 $7,398 141 $24,681 (3%) 234%

Total 1,393 $66,747 1,481 $128,331 6% 92%

Source: JEGI Transaction Database

Media, Information, Marketing & Technology M&A Activity

20142013

January ‐ DecemberJanuary ‐ December % Change

JEGI Press Release 2



www.jegi.com

Mega Deals in 2014

2014 saw 18 deals hit the $1 billion+ mark, including eight transactions in the Marketing Services &

Technology sector. The balance of the $1 billion+ deals fell within Mobile Media & Technology, Healthcare

Information & Technology, B2C Online Media & Technology, Education Information & Technology and

Database & Information Services. These 18 $1 billion+ deals alone accounted for more than half of 2014’s

total deal value – without these, 2014 deal value would have decreased by approximately 8% over the total

in 2013.

Date Seller Buyer Sector Value

1 Feb‐14 WhatsApp Facebook Mobile Media & Technology $19,697

2 Oct‐14 CareFusion Becton, Dickinson and Company Healthcare Information & Technology $12,058

3 Jul‐14Acosta Sales & Marketing

(Thomas H. Lee Partners)Carlyle Group Marketing Services & Technology $4,750

4 Jun‐14Advantage Sales & Marketing

(Apax Partners)CVC Capital, Leonard Green & Partners Marketing Services & Technology $4,200

5 Nov‐14 Sapient Publicis Groupe Marketing Services & Technology $3,376

6 Sep‐14 TriZetto Cognizant Technology Solutions Healthcare Information & Technology $2,700

7 Jun‐14 OpenTable Priceline Group B2C Online Media & Technology $2,496

8 Sep‐14 Conversant Alliance Data Systems Marketing Services & Technology $2,365

9 Mar‐14 SkillSoft (SSI Investments) Charterhouse Capital Partners Education Information & Technology $2,300

10 Mar‐14Catalina Marketing Corporation

(Hellman & Friedman)Berkshire Partners Marketing Services & Technology $2,000

11 Dec‐14 Fitch Group (Fimalac) Hearst Corporation Database & Information Services $1,965

12 Aug‐14 Classified Ventures (various investors) Gannett B2C Online Media & Technology $1,828

13 Jan‐14AutoTrader Group

(Providence Equity Partners)Cox Enterprises B2C Online Media & Technology $1,800

14 Aug‐14 Siemens Health Services (Siemens) Cerner Corporation Healthcare Information & Technology $1,300

15 Mar‐14 Renaissance Learning (Permira Advisers) Hellman & Friedman Education Information & Technology $1,100

16 Jun‐14 Internet Brands (Hellman & Friedman) Kohlberg Kravis Roberts & Co. Marketing Services & Technology $1,100

17 May‐14 Fullscreen Relativity Media B2C Online Media & Technology $1,000

18 Sep‐14 Ebates Performance Marketing Rakuten Marketing Services & Technology $1,000

19 Jan‐14 Trader Media (Guardian Media) Apax Partners Business‐to‐Business Media $979

20 Oct‐14Advanstar Communications

(VSS, Anchorage Capital, APEN)UBM Business‐to‐Business Media $972

Top 30 Largest Deals of 2014




www.jegi.com

JEGI Closings in Q4 2014

JEGI saw a very active year in 2014, closing 16 transactions across the media, information, marketing and

technology sectors, with six deals announced in the last quarter, including (JEGI client listed first):

The sale of both onPeak and Travel Planners, two leading event housing software and services

providers serving the global tradeshow and corporate event industries, to GES, a subsidiary of Viad

Corp. in October (JEGI managed two separate sales of onPeak and Travel Planners to close on the

same date as a prepackaged rollup);

The sale of RTM Productions, a TV and digital content production, distribution and marketing

platform specializing in automotive tech programming, to Raycom Media in October;

The sale of MarketCast, a leading provider of entertainment marketing insights and analytics and a

portfolio company of Shamrock Capital Advisors, to RLJ Equity Partners in November; and

The sale of IRON Solutions, a leading software and data provider to the agriculture market, to

Trimble (NASDAQ: TRMB), announced in December.

Looking Ahead to 2015

JEGI expects robust M&A activity to continue in 2015, primarily due to the steady progress of the US

economy and the improving economic outlook. Unemployment is at its lowest level since mid‐2008, as

businesses gain confidence and begin spending again. Resulting improvements in the labor markets, along

with plunging oil prices and lower costs at the gas pump, have stimulated consumer confidence.

Date Seller Buyer Sector Value

21 Aug‐14 Twitch Interactive Amazon B2C Online Media & Technology $970

22 Apr‐14 Ipreo (Kohlberg Kravis Roberts & Co.) Blackstone Group, Goldman Sachs Database & Information Services $962

23 Mar‐14 Maker Studios Walt Disney Company B2B Online Media & Technology $950

24 Mar‐14 TravelClick (Genstar Capital) Thoma Bravo Marketing Services & Technology $930

25 Sep‐14 Move News Corp B2C Online Media & Technology $916

26 Nov‐14 Big Fish Games (Salmon River Capital) Churchill Downs Mobile Media & Technology $835

27 Jan‐14Stream Global Services (Providence

Equity, Ares Management, LiveIt)Convergys Marketing Services & Technology $820

28 Aug‐14 Answers Corporation (TA Associates) Apax Partners B2C Online Media & Technology $819

29 Dec‐14Fotolia (Kohlberg Kravis Roberts & Co.,

TA Associates)Adobe B2B Online Media & Technology $800

30 Jun‐14 iParadigms (Warburg Pincus) Insight Venture Partners, GIC Education Information & Technology $752

Top 30 Largest Deals of 2014 (continued)




www.jegi.com

According to the Thomas Reuters and University of Michigan Index of Consumer Sentiment, US consumer

confidence reached its highest point in December since January 2007.

Globally, the US is expected to lead as the strongest economy in 2015. US GDP grew at an annual rate of

5% from July through September 2014, the fastest growth for any quarter in over a decade. Brisk growth is

expected to continue for 2015 at 3.1%, according to the National Association for Business Economics.

Another indicator is JEGI’s a very robust pipeline of active engagements heading into 2015, which points to

another busy year for M&A.

M&A Highlights for 2014

The B2B online media and technology sector saw 2014 deal value rise to $2.9 billion over 65

transactions vs. $601 million for 57 deals in 2013, driven by the recent acquisition by Adobe of online

stock photography community Fotolia for $800 million and Walt Disney’s acquisition of Maker Studios

for up to $950 million in Q1. Other notable transactions in Q4 2014 included the Genstar Capital

acquisition of BidClerk and iSqFt, two search and lead gen platforms for the commercial construction

industry, which Genstar merged for an undisclosed amount, and QuestionPro’s acquisition of

RapidEngage, a survey application to engage web site visitors, for an undisclosed amount.

B2C online media and technology deal value rose substantially in 2014 to a total value of $15 billion,

despite a 20% decline in volume, due to several mega deals, including the Cox Enterprises $1.8 billion

acquisition of a 25% stake in AutoTrader Group in Q1; Priceline’s $2.5 billion acquisition of OpenTable

in Q2; and the Gannett acquisition of a majority stake in Classified Ventures, valued at $2.5 billion, in

Q3. Notable deals in Q4 2014 included the: Great Hill Partners acquisition of online travel site

Momondo for $129 million; RTL Group acquisition of 71% of StyleHaul, an online video community

that provides make‐up and style tutorials, for approximately $107 million; and Hearst acquisition of a

25% stake in teen YouTube channel AwesomenessTV from DreamWorks Animation for approximately

$81 million, valuing the company near $325 million.

Deal value also sharply increased in the business‐to‐business media sector in 2014, up to $3.2 billion,

from $452 million in 2013. Deal volume remained fairly steady with 38 transactions in 2014 vs. 34 in

2013. The increase in value was due to UBM’s $972 million acquisition of b2b media company

Advanstar Communications in Q4, as well as the Apax Partners acquisition of a 50% stake in Trader

Media for approximately $979 million in Q1. Other notable deals in the fourth quarter of 2014 included

the United Communications Group acquisition of Buyouts and VCJ Publications & Events, Thomson

Reuters’ editorial and conference franchise for the private equity and venture capital industry, for $5

million, and SouthComm Communications’ acquisition of 11 public safety and security publications

and related web sites from Cygnus Business Media for an undisclosed amount.

The consumer magazines sector slowed overall in 2014 with 31 transactions, compared to 37 in 2013,

and deal value down 6% to $1.6 billion. Notable Q4 2014 deals included the: Postmedia Network

Canada acquisition of the English language operations of Sun Media from Quebecor, which include

specialty publications, newspapers and digital properties, for $282 million; Rockbridge Growth Equity




www.jegi.com

acquisition of CurtCo Robb Report, publisher of lifestyle, consumer product, real estate and travel

publications, for approximately $60 million; and Bertelsmann acquisition of a 25% stake in European

printing and publishing company Gruner + Jahr for an undisclosed sum.

Deal volume in the database and information services sector was flat in 2014, with 70 transactions vs.

69 in 2013, while deal value rose by 15% to $6.9 billion. Notable deals in the fourth quarter of 2014

included the: Hearst acquisition of a 30% stake in credit ratings agency Fitch Group for $2 billion;

Carlyle Group acquisition of Dealogic, an online resource for investment banking and capital markets

professionals, for $485 million; Solera Holdings acquisition of automotive database CAP Automotive

for $464 million; and Trimble acquisition of agriculture software and data provider IRON Solutions for

an undisclosed sum (a JEGI transaction).

M&A activity in the education information, technology and training sector declined in both deal

volume and value in 2014, 11% and 23% respectively, totaling 72 transactions at $5.4 billion. Notable

deals in Q4 2014 included the: Bertelsmann acquisition of Relias Learning, provider of online training

programs in healthcare, law enforcement and human services, from Vista Equity and LLR Partners;

Rhone Capital acquisition of Global Knowledge Training, provider of IT and business skills training

services, from MidOcean Partners; and Ebix acquisition of Oakstone Publishing, provider of continuing

education and certification for healthcare professionals, from BV Investment Partners.

Deal volume in the exhibitions and conferences sector slowed this year, with 53 transactions,

compared to 64 in 2013. Deal value fell significantly, dropping from $3.8 billion in 2013 to $1.1 billion

in 2014, due to a few large transactions in 2013, including the $950 million Onex acquisition of Nielsen

Expositions (JEGI advised Onex in this deal), $946 million Vista Equity acquisition of event

management software company Active Network, and $900 million Goldman Sachs acquisition of event

services company PSAV. Notable transactions for the fourth quarter of 2014 included the: Informa

acquisition of US trade show operator Hanley Wood Exhibitions for $375 million; GES (Viad)

acquisition of onPeak and Travel Planners, two leading event housing software and services providers,

for an undisclosed sum (JEGI transactions); and i2i Events acquisition of Money20/20, an event for the

financial services sector, for an undisclosed amount.

The healthcare information and technology sector, the second most active sector in terms of deal

volume, increased by 12% in number of transactions in 2014 compared to 2013, up to 234 deals. Deal

value in the sector rose sharply, up to $27.9 billion vs. 2013’s $10.5 billion, due to several large

transactions, including the recent $12.1 billion Becton, Dickinson and Company acquisition of

CareFusion, provider of various healthcare products and services, including enterprise IT, surveillance

and analytics. Other notable deals in Q4 2014 included the: OptumHealth Care Solutions acquisition of

health management services company Alere Health for $600 million; Catamaran acquisition of specialty

pharmacy services provider Salveo Specialty Pharmacy for $260 million; and Abbott Laboratories

acquisition of 3‐D electrophysiological mapping company Topera for $250 million.

The marketing services and technology sector continued to lead M&A activity in 2014, with 602

transactions and $39.7 billion of value, a 26% and 71% increase over respective 2013 levels. The largest




www.jegi.com

transaction in the fourth quarter of 2014 was the $3.4 billion Publicis acquisition of marketing

technology company Sapient. Other notable deals in Q4 2014, which reflect the wide range of

transactions and diverse buyer pool for this sector, included the:

Siris Capital Group acquisition of Digital River, provider of end‐to‐end cloud‐commerce, payments

and marketing solutions, for $646 million

Yahoo acquisition of Brightroll, provider of digital video advertising solutions, for $640 million

HGGC acquisition of Survey Sampling International, provider of sampling, data collection and data

analysis, from Providence Equity Partners and Sterling Investment Partners for a reported $500

million

Oracle acquisition of DataLogix, a provider of consumer purchasing data and digital audience

targeting, for an undisclosed amount reported to exceed $500 million

BancTec acquisition of SourceHOV, a business process outsourcing and consulting company, from

Citi Venture Capital International and other investors for an undisclosed sum

Cision/GTCR acquisition of Gorkana, provider of media intelligence and insights for PR agencies,

marketers and journalists, from Exponent Private Equity for approximately $323 million

ICF International acquisition of Olson, an integrated marketing technology and digital services

provider, from KRG Capital Partners for $295 million

TPG Capital acquisition of an 18% stake in talent management agency Creative Artists Agency for a

reported $225 million, valuing the company at $1.25 billion

Rentrak acquisition of Kantar Media’s US‐based TV measurement assets for $128 million

RLJ Equity Partners’ acquisition of MarketCast, a leading provider of entertainment marketing

insights and analytics, from Shamrock Capital Advisors for an undisclosed sum (a JEGI deal)

Macromill acquisition of market research company MetrixLab for an undisclosed sum

Kitara Media acquisition of digital ad network Future Ads for an undisclosed sum

Kantar Media Research acquisition of IBOPE Media Information, which provides measurement and

analysis of TV ratings and ad spending in Latin America, for an undisclosed sum

Nielsen acquisition of marketing optimization software provider Affinnova for an undisclosed sum

Raycom Media acquisition of RTM Productions, a TV and digital content production, distribution

and marketing platform specializing in automotive tech programming, for an undisclosed sum (a

JEGI deal)

The mobile media and technology sector declined slightly in terms of deal volume in 2014, with 141

transactions vs. 2013’s 145. Deal value, however, grew exponentially to $24.7 billion from $7.4 billion in

2013, due to the $19.7 billion Facebook/WhatsApp transaction in February. Notable Q4 2014 deals

included the: Churchill Downs acquisition of mobile game developer Big Fish Games for $835 million;




www.jegi.com

Twenty‐First Century Fox acquisition of True[x] Media, provider of interactive ads that run in mobile

games and apps, for a reported $200 million; and Microsoft acquisition of Acompli, a mobile email

application, for a reported $200 million.

About JEGI

The Jordan, Edmiston Group, Inc. (JEGI) has been the leading independent investment bank for the global

media, information, marketing and technology sectors for nearly 27 years. Headquartered in New York,

with offices in Boston and Atlanta, as well as affiliates in London and India, JEGI has completed over 500

high‐profile M&A transactions, serving global corporations; middle‐market and emerging companies;

entrepreneurial owners; and private equity and venture capital firms. For more information, visit

www.jegi.com.

###

2014 M&A Activityfor media, information, marketing and technology sectors

source: jegi transaction database

2013 2014

no. of deals

deal value

avg. deal size

1,393$66.7B$47.9M

1,481$128.3B$86.7M

*avg. deal size up 81% from 2013

Number of Deals by Industry Sectormarketing services & technology

healthcare information & technology

b2c online media & technology

mobile media & technology

education information, technology & training

database & information services

b2b online media & technology

exhibitions & conferences

business-to-business media

consumer magazines

602

234

175

141

72

70

65

38

31

53

Deal Value by Industry Sectormarketing services & technology

healthcare information & technology

mobile media & technology

b2c online media & technology

database & information services

education information, technology & training

business-to-business media

b2b online media & technology

consumer magazines

exhibitions & conferences

$39.7B

$27.9B

$24.7B

$15.0B

$6.9B

$5.4B

$3.2B

$2.9B

$1.6B

$1.1B

LARGESTDEALS OF

2014 whatsapp

$19.7B $12.1B

carefusion

$4.8Bacosta sales& marketing

$4.2Badvantage sales

& marketing

$3.4Bsapient $2.7B

trizetto $2.5Bopentable

skillsoft

conversant

catalinamarketing

$2.4B

$2.3B

$2.0B

20%295

1186

sponsoredvs

non-sponsored

sponsored

non-sponsored

Sponsored vs. Non-Sponsored Deals

sponsored deals

IN 2014