mergers & acquisitions capital raising strategic...

1 │ Internet Industry Update Q3 2014

Mergers & Acquisitions Capital Raising Strategic Advisory

Mobile Industry Update Q3 2014

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2 │ Mobile Industry Update Q3 2014

Vista Point Advisors Overview

Vista Point Advisors was founded on the principle that founder-led technology companies in the emerging and

middle markets are unique and require specialized attention and advice when considering investment and exit

opportunities. Our unique focus on sell-side processes provides our clients with unconflicted advice that assures

our interests are completely aligned with the entrepreneur. VPA is focused exclusively on working with founder-

owned and operated businesses to deliver the most favorable transactions at premium valuations.

Unconflicted Advice Deep Technology Domain Expertise

Differentiated Negotiation Framework

Vista Point exclusively provides sell-

side M&A and Capital Raising advisory

services to technology businesses

removing the conflict of interest

associated with working both sides of

the table.

Vista Point bankers are industry

specialists that focus exclusively on

core technology markets allowing us

to provide relevant insights into our

client’s business and create the

strategic framework to optimize

valuation.

The firm utilizes a unique negotiation

framework to increase the

competitiveness of the transaction

process, and ultimately yield higher

valuations at better terms for clients.


Q3 2014 Mobile Industry Overview

• Q3 2014’s mobile acquisitions totaled $18.7 billion in transaction value, representing a 143% increase over Q2

2014

─ Q3 2014 experienced 122 acquisitions, up 14% over the previous quarter

─ Mobile M&A activity over the last 12 months has featured an unprecedented number of acquisitions

• Mobile-focused mergers and acquisitions are up 5x from 2013

• Major opportunities for investment and exit opportunities include mobile commerce, business services,

education, and wearables, as well as lifestyle, medical, news and social networking applications


Global Mobile Traffic and Connectivity

Sources: IBISWorld, Cisco, KPCB, IDC. Q2 2014

Mobile Subscriptions per Capita Number of Mobile Internet Connections

Smartphone Operating System Global Market Share Global Mobile Traffic as a % of Total Internet Traffic

2 6 16

24

49

86

131

167

204

234

260 279

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Mo

bile

Inte

rne

t C

on

ne

ctio

ns

(mill

ion

s)

1.0

1.2

0.9

0.3

0.8

0.2

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Global Developed Nations Developing Nations

Basic Data

1% 2%

6%

10%

15%

25%

0%

5%

10%

15%

20%

25%

30%

2009 2010 2011 2012 2013 201478.9%

14.9%

3.9% 1.0%

1.3%

Android

iOS

Microsoft

BlackBerry

Others


Acquirer

Target

Date 7/17/2014 7/21/2014 7/31/2014 8/6/2014 9/27/2014

EV N/A N/A N/A N/A N/A

EV / LTM Rev N/A N/A N/A N/A N/A

EV / LTM EBITDA N/A N/A N/A N/A N/A

Active Acquirers and Notable Transactions Most Active Acquirers (Since 2010)

Source: Capital IQ as of 9/30/14 Only includes reported transaction values.

Notable Recent Transactions

Deals <$1bn

Deals >$1bn

25

1613

9 8 6 5 4 4 4 4 4 4 4 4

2

1

1

1

0

5

10

15

20

25

30

Nu

mb

er

of

Tran

sact

ion

s

$5.1

$1.1

$17.4

N/A N/A $0.1 N/A$1.3

$0.4 $0.2 $0.2 $0.1 $0.1 $0.1 N/A

$0.0

$5.0

$10.0

$15.0

$20.0

Tran

sact

ion

Val

ue

($

bn

)


Mobile M&A Market Overview Quarterly Mobile M&A Value and Deal Count (Since 2010)

Source: Capital IQ as of 9/30/14

60 5648

57 61 60

8779

94 9196

72

9183

6873

97107

122

0

20

40

60

80

100

120

140

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Nu

mb

er

of

Tran

sact

ion

s

$0.1

$4.0

$2.7

$0.5 $0.2

$3.2

$0.4

$1.4 $0.1 $2.2

$2.9 $2.9

$5.7$4.3

$8.0

$4.1$6.1

$7.7

$18.7

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Tran

sact

ion

Val

ue

($

bn

)


71%

6%

23%

Q2 '14

49%

8%22%

22%

Q3 '14

Mobile M&A Market Overview Transactions by Reported Value

Transactions by Target Funding

Total: $8B Total: $19B

Source: Capital IQ as of 9/30/14

67%

47% 47% 51%58% 59% 58%

70%66% 63% 63%

68% 67%58%

53%47%

56%61%

43%

0%

20%

40%

60%

80%

100%

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

50m+

$30 - $50M

$10 - $30M

$0.1 - $10M

Undisclosed

No Funding

$500M - $1B >$1B

$250M - $500M $100M - $250M $50M - $100M <$50M


Select Quarterly Mobile M&A Transactions

Note: $ in Millions. EV/EBITDA multiples less than 0x are considered not meaningful. Source: Capital IQ as of 9/30/14

Enterprise Target LTM Enterprise Value /

Date Target Acquirer Mobile Type Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

09/30/14 DataPad Cloudera Business Business Intelligence N/A N/A N/A N/A N/A

09/27/14 shopkick SK Planet Consumer Ecommerce N/A N/A N/A N/A N/A

09/26/14 Yahoo! Starboard Value Consumer Diversified Media N/A $4,622 $1,784 N/A N/A

09/24/14 Medium Entertainment Science Media Business Advertising and Marketing N/A N/A N/A N/A N/A

09/24/14 Path 36 Vemory Consumer Video Management N/A N/A N/A N/A N/A

09/23/14 Nexage Millennial Media Business Advertising and Marketing $88 $6 ($8) 14.4x N/M

09/23/14 LocalVox Media TBC Holdings I Business Advertising and Marketing N/A N/A N/A N/A N/A

09/22/14 TalkPoint Holdings Premiere Global Services Business Telecommunications N/A N/A N/A N/A N/A

09/22/14 Aviary Adobe Systems Development Development N/A N/A N/A N/A N/A

09/22/14 Corral Labs Lyft Consumer Transportation / Logistics N/A N/A N/A N/A N/A

09/19/14 Brink Software ParTech Business Fintech $17 N/A N/A N/A N/A

09/19/14 BranchOut The Hearst Corporation Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

09/18/14 Southern Experience Cox Enterprises Consumer Ecommerce N/A N/A N/A N/A N/A

09/18/14 Concur Technologies SAP America Consumer Fintech $7,652 $668 $32 11.5x 235.9x

09/17/14 Transport Innovation Vine Street Capital Business Transportation / Logistics $19 N/A N/A N/A N/A

09/17/14 800 Commerce Battery On The Go Business Fintech N/A $0 ($0) N/A N/A

09/17/14 UberSense Agile Sports Technologies Consumer Video Management N/A N/A N/A N/A N/A

09/16/14 Pheed Mobli Technologies 2010 Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

09/16/14 OneHealth Solutions Viverae Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

09/15/14 Cryptosoft TERN Business Security / Storage $0 N/A N/A N/A N/A

09/15/14 PrePlay FanVision Entertainment Development Sports N/A N/A N/A N/A N/A

09/12/14 Genares Worldwide Reservation Services Sabre Consumer Travel / Hospitality N/A N/A N/A N/A N/A

09/11/14 Movirtu BlackBerry Consumer Telecommunications $33 N/A N/A N/A N/A

09/11/14 Eventjoy Ticketmaster Entertainment Consumer Transportation / Logistics N/A N/A N/A N/A N/A

09/11/14 Conversant Alliance Data Systems Business Advertising and Marketing $2,365 $594 $198 4.0x 12.0x

09/05/14 Cellfire Catalina Marketing Consumer Ecommerce N/A N/A N/A N/A N/A

09/05/14 Agence Piranha Human Equation Consumer Advertising and Marketing N/A N/A N/A N/A N/A

09/04/14 Brightkit HootSuite Media Business Advertising and Marketing N/A N/A N/A N/A N/A

09/03/14 Location Labs AVG Technologies USA Consumer Security / Storage $233 $27 N/A 8.5x N/A

09/03/14 Baseline Gracenote Business Business Intelligence $50 N/A N/A N/A N/A

09/03/14 Mhelpdesk HomeAdvisor Business Content and Services N/A N/A N/A N/A N/A

09/03/14 RideScout car2go Consumer Transportation / Logistics N/A N/A N/A N/A N/A

09/03/14 ShopIgniter Mixpo Business Advertising and Marketing N/A N/A N/A N/A N/A

09/03/14 Kineto Wireless Taqua Consumer Telecommunications N/A N/A N/A N/A N/A

09/03/14 iHunt Calls Altus Brands Consumer Diversified Media N/A N/A N/A N/A N/A

09/02/14 IRISmaps OmniEarth Business Mapping / Tracking N/A N/A N/A N/A N/A

09/02/14 XRS Omnitracs Business Transportation / Logistics $178 $53 $6 3.3x 28.9x

09/02/14 PrinterOn Samsung Electronics Canada Business Content / Document Management N/A N/A N/A N/A N/A

09/02/14 Ten Eight RealNex Business Travel / Hospitality N/A N/A N/A N/A N/A

09/01/14 Perform Group Access Industries Consumer Diversified Media $1,078 $401 $51 2.7x 21.1x

08/29/14 Pethealth Fairfax Financial Holdings Business Business Software $84 $45 $2 1.9x 38.9x

08/28/14 Cobra Electronics Monomoy Capital Partners Consumer Mapping / Tracking $44 $114 $4 0.4x 12.4x

08/28/14 Ariel Communications Monecor (London) Business Fintech N/A N/A N/A N/A N/A

08/27/14 TagPoints SmartFocus Business Advertising and Marketing N/A N/A N/A N/A N/A

08/26/14 moosify Tastebuds Media Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A


Select Quarterly Mobile M&A Transactions (cont.)




08/26/14 Trulioo UST Global Consumer Security / Storage N/A N/A N/A N/A N/A

08/22/14 Moonshark Hitcents Development Development N/A N/A N/A N/A N/A

08/22/14 1006397 B.C. SecureCom Mobile Consumer Telecommunications N/A N/A N/A N/A N/A

08/21/14 WillCall Ticketfly Consumer Ecommerce N/A N/A N/A N/A N/A

08/21/14 SumTotal Systems SkillSoft Business Human Capital N/A N/A N/A N/A N/A

08/21/14 Sign-Up Technologies Host Europe WVS Business Advertising and Marketing N/A N/A N/A N/A N/A

08/20/14 Tsugi Unity Technologies Development Development N/A N/A N/A N/A N/A

08/19/14 Maxie Mobile Global Payout Consumer Fintech N/A N/A N/A N/A N/A

08/18/14 Brand Reporter YPB Group Business Business Software $1 N/A N/A N/A N/A

08/18/14 Hiq Lockscreen Science Media Consumer Education N/A N/A N/A N/A N/A

08/15/14 Jetpac Google Consumer Travel / Hospitality N/A N/A N/A N/A N/A

08/12/14 GlobalBay Technologies Manhattan Associates Business Retail Software N/A N/A N/A N/A N/A

08/11/14 FiveCubits Command Alkon Business Supply Chain N/A N/A N/A N/A N/A

08/11/14 Leaf Holdings Heartland Payment Systems Business Fintech N/A N/A N/A N/A N/A

08/08/14 SafeNet Gemalto Business Security / Storage $890 N/A N/A N/A N/A

08/08/14 Neon Stingray Valtech Consumer Integration / Middleware N/A N/A N/A N/A N/A

08/07/14 CardSmith Blackboard Consumer Education N/A N/A N/A N/A N/A

08/06/14 Brightstar SoftBank Consumer Telecommunications $790 N/A N/A N/A N/A

08/06/14 Directr YouTube Consumer Video Management N/A N/A N/A N/A N/A

08/06/14 Opinionmeter International PeriscopeIQ Business Advertising and Marketing N/A N/A N/A N/A N/A

08/05/14 [x+1] Rocket Fuel Business Advertising and Marketing $236 $72 N/A 3.3x N/A

08/05/14 ComCanada Communications Rock Solid Internet & Telephone Business Telecommunications N/A N/A N/A N/A N/A

08/05/14 MentorMate Taylor Development Development N/A N/A N/A N/A N/A

08/04/14 MdotLabs comScore Business Advertising and Marketing $5 N/A N/A N/A N/A

08/04/14 Schematic Labs Rhapsody International Development Development N/A N/A N/A N/A N/A

08/04/14 Double Encore Possible Worldwide Development Development N/A $8 N/A N/A N/A

08/04/14 Anuva Automation Anuva Services Consumer Systems / Network N/A N/A N/A N/A N/A

07/31/14 Taptica Marimedia Business Advertising and Marketing N/A N/A N/A N/A N/A

07/31/14 SpotXchange RTL Group Business Advertising and Marketing $222 N/A N/A N/A N/A

07/31/14 MyMobiPoints.com Genius Properties Development Development $0 N/A N/A N/A N/A

07/31/14 Propeller Palantir Technologies Development Development N/A N/A N/A N/A N/A

07/30/14 Empowered Careers Qualcomm Technologies Consumer Education N/A N/A N/A N/A N/A

07/30/14 Plastic Jungle CardCash Consumer Fintech N/A N/A N/A N/A N/A

07/29/14 Reckon Highclere International Investors Business Accounting / ERP N/A $94 $26 N/A N/A

07/29/14 Blendspace Tangient Consumer Education N/A N/A N/A N/A N/A

07/29/14 Sifteo 3D Robotics Development Development N/A N/A N/A N/A N/A

07/29/14 Markover Palantir Technologies Consumer Advertising and Marketing N/A N/A N/A N/A N/A

07/29/14 Hub Data Engage Mobility Business Systems / Network N/A N/A N/A N/A N/A

07/28/14 Trulia Zillow Consumer Travel / Hospitality $3,091 $209 ($26) 14.8x N/M

07/24/14 DoubleVision Networks Single Touch Systems Business Advertising and Marketing $5 N/A N/A N/A N/A

07/24/14 My City Venue Secret Escapes Consumer Ecommerce N/A N/A N/A N/A N/A

07/23/14 Together Games GameSalad Development Platform / OS N/A N/A N/A N/A N/A

07/23/14 Eventful CBS Local Media Consumer Diversified Media N/A N/A N/A N/A N/A

07/22/14 Juniper Networks, Pulse Product Portfolio Siris Capital Group Business Security / Storage $250 N/A N/A N/A N/A

07/21/14 Umojawa Crowdera Consumer Platform / OS N/A N/A N/A N/A N/A


Select Quarterly Mobile M&A Transactions (cont.)




07/21/14 Flurry Yahoo! Business Advertising and Marketing N/A N/A N/A N/A N/A

07/18/14 First American Payment Systems Ontario Teachers' Pension Plan Business Fintech N/A N/A N/A N/A N/A

07/17/14 Citrus Lane Care.com Consumer Ecommerce $49 N/A N/A N/A N/A

07/17/14 CardSpring Twitter Business Fintech N/A N/A N/A N/A N/A

07/16/14 Mobotap Changyou.com Development Platform / OS $178 N/A N/A N/A N/A

07/16/14 CoFoundersLab Onevest Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

07/15/14 zipRealty Realogy Group Business Advertising and Marketing $157 $70 ($6) 2.3x N/M

07/14/14 TikForce Palace Resources Business Human Capital $2 N/A N/A N/A N/A

07/14/14 Creativebug AT&T, The Chernin Group Consumer Education $10 N/A N/A N/A N/A

07/14/14 CoverItLive Scribble Technologies Consumer Video Management N/A N/A N/A N/A N/A

07/14/14 123Comply Collections Solutions Software Business Governance, Risk, & Compliance N/A N/A N/A N/A N/A

07/14/14 Bloson.com Ecosia Consumer Ecommerce N/A N/A N/A N/A N/A

07/14/14 Semantria Lexalytics Business Knowledge / Content (Social) N/A N/A N/A N/A N/A

07/11/14 ZipLocal Enthrive Consumer Ecommerce N/A N/A N/A N/A N/A

07/11/14 RelateIQ Salesforce.com Business CRM $391 N/A N/A N/A N/A

07/11/14 Boston Technologies Forexware Business Fintech N/A N/A N/A N/A N/A

07/11/14 RayV Yahoo! Business Video Management N/A N/A N/A N/A N/A

07/10/14 All Homes Fairfax Media Consumer Ecommerce $47 N/A N/A N/A N/A

07/10/14 Livelynk Group Lithex Resources Business Advertising and Marketing $7 N/A N/A N/A N/A

07/10/14 Iboss International My Net Fone Business Telecommunications $1 N/A N/A N/A N/A

07/10/14 ProcureApp Runzheimer International Business Fintech N/A N/A N/A N/A N/A

07/09/14 LoopPay Synchrony Financial Consumer Fintech N/A N/A N/A N/A N/A

07/08/14 Xtreme Mobility Assets Mobile Lads Business Fintech $9 N/A N/A N/A N/A

07/08/14 FotoPunch Asure Software Business Human Capital $5 N/A N/A N/A N/A

07/08/14 Talksoft RevSpring Business Telecommunications N/A N/A N/A N/A N/A

07/08/14 SocialKaty Manifest Digital Business Knowledge / Content (Social) N/A N/A N/A N/A N/A

07/07/14 Newport Media Atmel Development Telecommunications $170 $43 N/A 4.0x N/A

07/07/14 Trusted Positioning InvenSense Consumer Mapping / Tracking $31 N/A N/A N/A N/A

07/07/14 Conductiv Zero2Sixty Software Business Ecommerce N/A N/A N/A N/A N/A

07/07/14 WCS Enterprises Calibrus Consumer Knowledge / Content (Social) N/A N/A ($1) N/A N/A

07/01/14 Meritus Payment Solutions Optimal Payments Consumer Fintech $211 $74 $13 2.8x 16.3x

07/01/14 Songza Media Google Consumer Diversified Media N/A N/A N/A N/A N/A

Mobile Median $50 $72 $5 3.3x 21.1x

Mobile Mean $503 $418 $148 5.7x 52.2x


Representative Vista Point Advisors Transactions

*Completed by VPA professionals while at another investment bank

has been acquired by

April 2014


March 2014


November 2013


August 2014


March 2012


January 2013

received a strategic investment from

March 2013


March 2013

received a strategic investment from*

November 2010

has been acquired by*

December 2010

has been acquired by has been acquired by has been acquired by


May 2012


October 2010


September 2010

October 2011 October 2011 January 2013


Vista Point Advisors Overview

Mike Lyon

415.659.9187

[email protected]

Jeff Bean

415.659.9190

[email protected]

Thomas Lin

415.692.6163

[email protected]

Russell Perkins

415.501.9029

[email protected]

Miles Lacey

415.659.9278

[email protected]

Jeffrey Koons

415.659.9189

[email protected]

90 New Montgomery, Suite 700

San Francisco, CA 94105

• Software-as-a-Service

• On-premise

• Application Software

• Healthcare IT

• Financial Tech

• Advertising and Marketing

• Digital Media

• Gaming

• Content

• Platforms

• Consumer Applications

• Enterprise Applications

• Gaming

• Payments

• Infrastructure

Software Internet Mobile

Vista Point Advisors is a boutique investment bank focused on capital raises and M&A advisory for growing technology companies

David Cho

415.547.8440

[email protected]

Mike Greco

415.659.9191

[email protected]

Scott Austin

415.547.8437

[email protected]

mergers & acquisitions capital raising strategic...

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