m&a snapshot q1 2015

M&A Snapshot Q1 2015

Web: architectpartners.com | Email: [email protected]

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Core M&A Consideration Exchanged up 44%, with China

contributing 72% of this increase

M&A SNAPSHOT20152013

Total M&A Exits (a)

2014

Proportion Premium Value (c)

$13.5$13.8$18.5

$12.3$9.4$9.6$8.1$7.0$6.1

2

Source: Architect Partners LLC, Capital IQ, company filings and public information a) M&A exits within Mobile | Internet | Digital Media sectors b) Core M&A exits are defined as transactions with announced or estimated values between $25 million and $1 billion in consideration, as these typically represent successful business-

building endeavors c) Premium value transactions are defined as greater than 5 times invested equity capital or 5 times estimated last twelve months revenue (LTM)

% of Total M&A Exits

% of Core M&A Exits

7663

7470

4561

413334

Core M&A Exits (b)

Consideration Exchanged $billions (b)

466 387 327 406 416 494

3% 3% 5% 2% 3% 4%

21% 32% 42% 17% 18% 29%

Q1 - 2015

Q1Q1 Q2 Q3 Q4 Q1 Q2

464

4%

27%

Core M&A exits up 69% year-over-year, with China

contributing 42% of this increase

Q3

4%

20%

509

Q4

639

4%

26%

$2,012

M&A BY SECTORM&A continued strong in the first quarter of 2015, again led by the Enterprise Application segment, which accounted for 20% of core M&A. Digital Marketing rose compared to Q4 2014. The most strategically interesting transactions in Q1 2015 included Twitter’s efforts to aggressively expand its value proposition to users via its acquisition of Niche ($45mm - $60mm) and Periscope, and efforts by Samsung and PayPal to secure leading roles in consumer payments via the acquisitions of LoopPay and Paydiant ($280mm), respectively.

Core Transactions by Sector

$2,014 $2,095 $315 $1,160$1,115 $992$3,331 $267Total sector M&A value in $mm 3

Consumer Application Enterprise Application Analytics Application Network Infrastructure App Development Security Commerce Digital Marketing Media Hardware Service Provider

SECTORS

$183

4%17%

9%

5%

7%

4%

14%

20%

4%

16%

Commerce

Consumer Application

Analytics Application

Enterprise ApplicationDigital

Marketing

Hardware

Network Infrastructure

Security

Media

Service Provider

Number of Deals by Sector

Source: Architect Partners LLC, Capital IQ, company filings and public information

Q1 - 2015

$0

Skymoons Technology | Geeya TechnologyInterxion Holding | Telecity

Advent Software | SS&C TechnologiesRicardo.ch AG | Tamedia AG

0 2 4 6 8 10 12 14 16 18 20

PREMIUM VALUE DEALSTarget | Acquirer

Adin Media | Jiangsu Wutong CommsEmerging Threats | Proofpoint

Endomondo | Under ArmourRevoApps | Monotype Imaging

MyFitnessPal | Under ArmourZ2 | King Digital Entertainment

IntellinX | Bottomline TechnologiesNiche | Twitter

MobPartner | Cheetah MobileProwebCE | Alpha Group; Edenred

Symphony Teleca | Harman Int'l IndustriesRed Bend | Harman Becker Automotive Sys

Librato | Solar WindsAvazu | Dalian Zeus Entertainment

Chango | The Rubicon ProjectPaydian | PayPal

Yieldex | AppNexus0 4 8 12 16 20 24 28 32 36 40

x LTM Revenue

x Invested Capital

Premium Value is defined as greater than 5 times invested equity capital or 5 times the estimated last 12 months revenue (LTM)

47x

4

LTM revenue multiple of the acquirer at the time of acquisition


Q1 - 2015

Target | Acquirer

Beijing Six Rooms | Dongcheng Performance Development

LTM revenue multiple of the target at the time of acquisition

36x

23x

(In terms of number of Acquisitions)

1 / 5 | $850mm2 / 7 | $145mm - 160mm 2 / 7 | $367mm

a) A number of transactions do not disclose acquisition price, so aggregate value of deals over the last twelve months is likely understated.

9.

Number of new deals in Q1 / total deals last 4 quarters | total spend last 4 quarters (a)

5

1.0 / 11 | $990mm

2.3 / 21 | $1.2B

3. 4. 5.

6. 7. 8. 10.

MOST ACTIVE ACQUIRERS LTM


Equivio Revolution Analytics Sunrise Atelier

3 / 8 | $2.5B

Launchpad Toys Nimbuz RedHotLabs

3 / 7 | $426mm

Wit.AI Quickfire Networks TheFind

ZipDial Mobile Solutions Niche

1 / 5 | $3B

Semetric Limited AlchemyAPI

3 / 7 | $410mm

Zeropaper Servicos Porticor Playbook Labs

Firstway Digital SugarSync

1 / 5 | NA

LoopPay

None

CORE TRANSACTIONS

BUYER TARGET TRANSACTION VALUE ($MM) TARGET DESCRIPTION AP M&A

ALERT VC-BACKED

58.com Anjuke.com 266.2 Operates an online platform for buying, selling, and renting properties. Based in Shanghai, China. x

AGS, LLC Cadillac Jack, Inc. 374.8 Designs, manufactures, and markets casino games and systems. Based in Duluth, Georgia.

Allot Communications Optenet, S.A. 38.0 Provides security solutions to service providers and large enterprises worldwide. Based in Madrid, Spain.

Alpha Group; Edenred SA ProwebCE 57.0 Provides a communication and management platform interfaced to an e-commerce portal for works councils. Based in Levallois, France. x

Amber Road ecVision 33.0

Provides cloud-based supply chain collaboration platform that optimizes product life cycle and supply chain processes for private label brands, retailers, and trading partners. Based in South Iselin, New Jersey.

ANI Technologies Serendipity Infolabs 200.0 Operates a taxi booking portal that enables consumers to book taxis online in India. Based in Bengaluru, India. x

AppNexus Yieldex 100.0 Provides advertisement forecasting, analytics, and trading tools for online publishers and advertisers. Based in San Mateo, California. x

auFeminin.com Livingly Media 50.0Owns and operates fashion and beauty, entertainment, and home design Websites for women in the United States. Based in San Carlos, California.

x

Avago Technologies Wireless (U.S.A.) Manufacturing

Emulex Corporation 725.9Provides network connectivity, monitoring, and management products for networks that support enterprise, cloud, government, and telecommunications worldwide. Based in Costa Mesa, California.

x

Aveva Group plc 8over8 Limited 41.0Provides lifecycle contract management software solutions for organizations that build and operate assets. Based in Derry, United Kingdom.

Baocheng Investment Shenzhen Taole Network Technology 130.9 Engages in the development and production of network games. Based

in Shenzhen, China. x

Bottomline Technologies IntellinX 84.9 Develops behavior tracking solutions. Based in Or-Yehuda, Israel.

British Gas Services AlertMe.com 67.7

Provides Omnia, an interoperable and open cloud-based platform to connect an ecosystem of devices and appliances to provide services that allow users to monitor, control, and automate their homes in Europe and the United States. Based in Cambridge, United Kingdom.

x

Premium Value M&A

6Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

Q1 - 2015

CORE TRANSACTIONS (CONTINUED)


ALERT VC-BACKED

Burda Digital Tomorrow Focus Publishing 32.6 Owns and operates news and utility journalism Internet portals. Based in Munich, Germany. x

Capita plc Constructionline 53.1Operates an online database that enables buyers to source pre-qualified construction suppliers, contractors, and consultants. Based in Basingstoke, United Kingdom.

Cheetah Mobile MobPartner SA 58.0 Operates a mobile affiliate network that connects advertisers with their audience worldwide. Based in Paris, France. x

Chengdu Santai Electronics Industry

Yantai Weian Information Technology 120.6 Owns and operates a financial website. Based in Yantai, China.

Dalian Zeus Entertainment Avazu 333.6

Focuses on offering advertisers with solutions for real-time and data-driven display advertising across various advertisement exchanges and sell-side platforms worldwide. Based in Shanghai, China.

x

Dalian Zeus Entertainment

Beijing Miaoqu Hengsheng Technology 94.9 Develops web-based and mobile games. Based in Beijing, China. x

Dalian Zeus Entertainment RaySns Technology 141.6 Develops Internet and online games. Based in Beijing, China.

Demandware Tomax Corporation 75.0 Develops cloud-based retail solutions for retailers in North America. Based in Salt Lake City, Utah,

Dun & Bradstreet NetProspex 125.0 Provides business-to-business (B2B) marketing data management services worldwide. Based in Waltham, Massachusetts. x

Expedia Travelocity.com LP 280.0 Provides travel services to leisure and business travelers in United States and Canada. Based in Southlake, Texas. x

Fujian Star-net Communication Asiatelco Technologies 52.2 Manufactures wireless access devices and equipment for carriers and

broadband Internet service providers. Based in Shanghai, China. x

Geeya Technology Chengdu Skymoons Technology Company 352.5 Develops and offers online games. Based in China.

Premium Value M&A

7

Q1 - 2015

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.



ALERT VC-BACKED

Global Payments Realex Payments 126.2

Owns and operates an online payment gateway that provides payment processing services for corporate and business clients selling online and processing payments on behalf of retailers worldwide. Based in Dublin, Ireland.

Great Wall Movie and Television Shanghai Macro Media Group 26.0 Provides digital marketing services. Based in China.

Gruppo MutuiOnline 7Pixel Srl 58.4 Offers many websites with price comparison features. Based in Giussago, Italy.

GTT Communications MegaPath Corporation, Managed Services Business 152.3 Provides private networking, access services, and managed security

services to other corporations. Located in the United States.

Harman Becker Automotive Systems Manufacturing Kft.

Red Bend Software. 200.0 Offers mobile software management solutions for mobile devices and services. Based in Waltham, Massachusetts. x

Harman International Industries Symphony Teleca 780.0

Creates and commercializes SaaS/cloud enterprise software, mobile products and solutions, big data and analytic services, and integrated enterprise solutions to ISVs, mobile device and solutions manufacturers, and the connected analytics-driven enterprises. Based in Mountain View, California.

x

Hengtong Optic-electric Beijing Wajinke Information Technology 69.6 Provides mobile internet services including mobile value added and

marketing services. Based in China.

Infosys Panaya 200.0 Provides cloud-based quality management solutions for enterprise applications worldwide. Based in Ra'anana, Israel. x

Insight Venture Partners E2open 274.1 Provides cloud-based, on-demand software solutions for supply chain management. Based in Foster City, California. x

Jiangsu Wutong Communications Adin Media 217.1 Offers online advertising services based on multiple platforms

through consolidating media resources. Based in Shanghai, China.

Juara Sejati Sdn. Bhd. REDtone International Bhd 108.4 Provides telecommunications services in Malaysia, the People’s Republic of China, and internationally. Based in Puchong, Malaysia.

Keda Group Beijing Aspiration Advertisement 151.9 Offers Internet marketing services. Based in Beijing, China. x

Premium Value M&A

8

Q1 - 2015




ALERT VC-BACKED

King Digital Entertainment Z2 150.0 Creates free-to-play social and multiplayer games for mobile devices.

Based in Seattle, Washington. x

Kwang Dong Pharmaceutical Korea ePlatform 37.1 Operates an online marketplace for businesses. Based in Seoul, South

Korea.

Lattice Semiconductor Silicon Image 565.0

Provides video, audio, and data connectivity solutions that enable the distribution and presentation of high-definition (HD) and 4K ultra high definition (4K UHD) content for the mobile, consumer electronics (CE), and personal computer (PC) markets. Based in Sunnyvale, California.

x

LDC (Managers) Limited; Scottish Equity Partners SSP Holdings 305.3

Develops software solutions for insurance and financial services industries in the United Kingdom and internationally. Based in Halifax, United Kingdom.

x

LIG Special Purpose Acquisition 2nd Co. EnGIS Technologies 37.6 Provides navigation software solutions worldwide. Based in Seoul,

South Korea.Magyar Telekom

Telecommunications Public Limited Company

GTS Hungary Távközlési Kft. 48.4 Provides voice, Internet, and data network services in Europe. Based in Budaörs, Hungary.

Mitel U.S. Holdings Mavenir Systems 546.6Provides software-based telecommunications networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Based in Richardson, Texas.

x

Mixi Hunza 95.7Operates a peer-to-peer ticket marketplace under the name Ticket Camp to connect buyers with users who have extra tickets for live performances and other amusement events. Based in Tokyo, Japan.

Mobile Network Group Appsfire SAS 30.0 Operates an advertising platform for application developers and advertisers. Based in Paris, France. x

Monotype Imaging RevoApps 27.0 Ofers mobile advertising solutions. Based in New York, New York. x

Nexstar Broadcasting Group Yashi 33.0

Provides digital marketing services. The company owns and operates audience buying platform for gaming, entertainment, and lifestyle sectors. Based in Toms River, New Jersey.

Nio Gaming Innovation Group 73.6 Builds iGaming products. Based in Ta’ Xbiex, Malta.

Premium Value M&A

9

Q1 - 2015




ALERT VC-BACKED

ODS Technologies HRTV 72.8Operates a television-based multimedia network which offers news, information, and entertainment to horse fans. Based in Arcadia, California.

Ourpalm Blingstorm Entertainment 342.5 Develops and markets mobile games. Based in China. x

PayPal Paydiant 280 Provides mobile payments solutions. Based in Auburndale, Massachusetts. x

Proofpoint Emerging Threats Pro 40.0 Designs and develops security software. Based in Lafayette, Indiana. x

Rakuten OverDrive 410.0 Distributes digital eBooks, audio-books, music, video, and other digital content worldwide. Based in Cleveland, Ohio. x

Rocket Internet AG Talabat General Trading and Contracting Company 169.6 Offers online food delivery services. Based in Al Daiya Area, Kuwait.

Rongxin Power Electronic Montnets Technology 525.3 Engages in the management of mobile data business and software development. Based in Shenzhen, China. x

S. Carter Enterprises Aspiro AB 56.1 Provides WiMP branded music streaming subscriptions to end users. Based in Malmö, Sweden. x

SolarWinds Librato 40.0Develops software for monitoring and managing cloud applications and maximizing the utilization of resources in clouds and data centers. Based in San Francisco, California.

x

Songcheng Performance Development Beijing Six Rooms 417.7 Beijing Six Rooms., Co. operates a video sharing website. The

company is based in Beijing, China. x

Sonus Networks Treq Labs., Software Defined Networking Business 79.3

Provides solutions that optimize networks for voice, video, and UC (unified communications) for both enterprise and service provider customers. Based in Sunnyvale, California.

Spectris plc ReliaSoft Corporation 42.0 Provides reliability engineering software, training, and consulting and related services. Based in Tucson, Arizona.

Premium Value M&A

10

Q1 - 2015


stamps.com PSI Systems 215.0 Offers computer programs that allow users to print postage and shipping labels. Based in Palo Alto, California.



ALERT VC-BACKED

Synchronoss Technologies

F-Secure Oyj, Personal Cloud Assets 60.0 Comprises personal cloud platform of F-Secure Oyj. Located in

Finland.

Tamedia AG ricardo.ch AG 259.2 Operates as an online portal in Switzerland. Based in Zug, Switzerland.

Temenos Group AG IGEFI Group Sàrl 260.3 Provides software to the investment funds industry. Based in Strassen, Luxembourg. x

Temenos U.S.A. Akcelerant Software 55.0Provides connected software applications and advisory services to the financial industryluding credit unions and banks in the United States and Canada. Based in Malvern, Pennsylvania.

TeraGo Networks RackForce Networks 25.9 Provides cloud hosting services. Based in Kelowna, Canada.

The Rubicon Project Chango 116.0Operates a programmatic advertising platform that connects marketers with their target audience in real time across display, mobile, FBX, twitter, and video. Based in Toronto, Canada.

x

Twitter Niche 45.0 - 60.0 Helps social media talent manage their publishing efforts across various social media platforms. Based in New York. x

Under Armour Endomondo ApS 85.0A social sports and fitness network that enables the users to automatically track their sports data and monitor their performance over time. Based in Copenhagen, Denmark.

x

Under Armour MyFitnessPal 475.0Operates an online nutrition and calorie counter database that allows users to record their food intake, and track calorie counting and food plans. Based in San Francisco, California.

x

Vector Capital Saba Software 270.2Provides cloud-based intelligent talent management solution for organizations to hire, develop, engage, and inspire people worldwide. Based in Redwood Shores, California.

x

Yelp Eat24Hours.com 134.2 Offers online restaurant order processing services to restaurants and merchants. Based in San Francisco, California.

Zayo Group Latisys Holdings 675.0 Provides colocation and infrastructure as a service (Iaas). Based in Englewood, Colorado.

Zomato Media Wanderspot 52.0 Owns and operates Urbanspoon, an online restaurant guide. Based in West Hollywood, California.

- Jiayuan.com International 70.3 Operates an online dating platform in the People’s Republic of China. Based in Beijing China. x

Premium Value M&A

11

Q1 - 2015


OTHER NOTABLE DEALS


ALERT VC-BACKED

Bain Capital Blue Coat Systems 2,400.0

Designs, develops, and sells products and services that secure, accelerate, and optimize the delivery of business applications and other information to distributed users over a wide area network (WAN) or the public Internet/Web. Based in Sunnyvale, California.

Canon Axis AB 2,839.8Provides network video solutions for professional installations in Europe, Africa, the Middle East, North and South America, and Asia. Based in Lund, Sweden.

CCH I Bright House Networks 10,439.0 Owns and operates cables systems in the United States. Based in East Syracuse, New York.

CommScopeTE Connectivity., Telecom,

Enterprise and Wireless Business

3,000.0Supplies infrastructure components and systems for the telecommunications market and electronic components for the data communications market.

DH Corporation Fundtech 1,250.0 Provides end-to-end financial transaction processing software solutions for financial institutions internationally. Based in New York.

Expedia Orbitz Worldwide 1,788.0 Operates as an online travel company worldwide. Based in Chicago, Illinois.

Hewlett-Packard Aruba Networks 2,650.8 Provides enterprise mobility solutions worldwide. Based in Sunnyvale, California.

Hutchison 3G UK Telefónica UK 15,400.8 Provides mobile and broadband services to consumers and businesses in the United Kingdom. Based in Slough, United Kingdom.

Lexmark International Technology S.A. Kofax Limited 1,014.3

Provides capture and business process management (BPM) software and related maintenance and professional services. Based in Irvine, California.

Netinvest Skrill Holdings 1,760.3 Provides digital payment services worldwide. Based in London, United Kingdom.

Samsung LoopPay -Provides a mobile wallet platform that allows consumers to pay virtually everywhere and store their cards on their smartphone. Based in Burlington, Massachusetts.

x

SS&C Technologies Advent Software 2,585.7Provides software products and services for automating and integrating data and work flows worldwide. Based in San Francisco, California.

Telecity Group Interxion 2,707.3 Provides carrier-neutral colocation data center services in Europe. Based in Amsterdam, the Netherlands.

TPG Telecom iiNet 1,302.1Provides Internet and telephony services to various residential, regional, corporate, and government customers in Australia. Based in Perth, Australia.

Twitter Periscope - Develops an application for live streaming of videos. Based in San Francisco, California.

Uber deCarta - Provides location based solutions. Based in Los Altos, California. x

12M&A transactions with consideration in excess of $1B or with unannounced transaction values

Q1 - 2015Premium Value M&A

Web: architectpartners.com | Email: [email protected]

mailto:[email protected]

m&a snapshot q1 2015

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