m&a snapshot q4 2014

M&A Snapshot Q4 2014

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

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M&A SNAPSHOT2012 2013

Total M&A Exits (a)

2014

Proportion Premium Value (c)

$13.8$18.5

$12.3$9.4$9.6$8.1$7.0$6.1$9.7

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 the estimated last twelve months revenue (LTM)

% of Total M&A Exits

% of Core M&A Exits

637470

4561

413334

63Core 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%

Q4 - 2014

Q4 Q1 Q2 Q3 Q4 Q1 Q2

464

4%

27%

2014 core M&A activity up 50% from 2013

Q3

4%

20%

509

Q4

539

3%

17%

2014 core M&A consideration exchanged up 75% from 2013 with average deal size $213.4mm

$3,435

M&A BY SECTORM&A ended 2014 on a strong note albeit slightly below Q3. Enterprise Application accounted for the most active sector while Digital Marketing and Media were down substantially. The most strategically interesting transactions in Q4 included Yahoo’s purchase of video ad specialist BrightRoll for $640mm, the acquisition of Big Fish Games by horse racing notable, Churchill Downs, and the merger between Germany-based mobile supply-side platform Fyber and Luxembourg-listed RNTS Media.

Core Transactions by Sector

$3,365 $202 $1,059 $195$1,140 $354$2,085 $225Total 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

$1,594

2%11%

17%

3%

6%

5%5%

10%

24%

3%

14%

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

Q4 - 2014

$100

App Development

BrightRoll | Yahoo!

0 0.8 1.6 2.4 3.2 4 4.8 5.6 6.4 7.2 8

PREMIUM VALUE DEALSTarget | Acquirer

Prism Technologies | Internet Patents Corp.

Fyber | RNTS Media

Smarterer | Plurasight

ContactAtOnce! | LivePerson

Nexgate | Proofpoint

StyleHaul | RTL Group

Big Fish Games | Churchill Downs

Nimbuzz | New Call Telecom

Tripwire | Belden

Xtime | Cox Automotive

0 2 4 6 8 10 12 14 16 18 20

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)

33x

4

LTM revenue multiple of the acquirer at the time of acquisition


Q4 - 2014

Target | Acquirer

Columbus Communications | Cable & Wireless Communications

LTM revenue multiple of the target at the time of acquisition

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

9.

1 / 7 | $375mm

Number of new deals in Q4 / total deals last 4 quarters | total spend last 4 quarters (a)

5

1.

5 / 19 | $990mm

Aorato Acompli Bit Stadium GmbH

2.1 / 25 | $4.8B

3.1 / 9 | $19.2B

4.3 / 8 | $2.6B

5.

6.

1 / 4 | $650mm

7.0 / 5 | $850mm

8.2 / 4 | $2.5B

10.0 / 6 | $3B

MOST ACTIVE ACQUIRERS LTM


BrightRoll Cooliris FROSK, Inc LIttleInc Labs Media Group One Digital GmbH

GSF Telecom Holdings Rooster Teeth

PasswordBox

DataLogix Relative Wave Nimble

0 / 5 | $100mm

CORE TRANSACTIONS

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

ALERT VC-BACKED

Accesso Technology Group VisionOne Worldwide $33

Develops and executes e-business and enterprise solutions that include an Internet-based box office and ticketing solution. British Virgin Island-based.

x

Adobe Systems Inc. Fotolia LLC $800Operates an online stock photography community that enables professional and amateur photographers to sell their image licenses. New York-based.

Altisource Portfolio Solutions S.A. Owners Advantage, LLC $27

Owns and operates an on-line real estate service that puts consumers in control of all aspects of homeownership including buying and selling. San Francisco-based.

x

Anite plc Xceed Technologies Inc. $35 Provides Web-based and desktop based post-processing products for multimedia wireless network optimization. Netherlands-based.

Apax Partners LLP Exact Holding NV $932 Develops, distributes, and markets cloud-based business software solutions for small and medium-sized businesses worldwide.

AS Starman UAB Cgates $69 Provides digital television and Internet services. Lithuania-based.

BAE Systems plc Eclipse Electronic Systems, Inc. $28

Designs, manufactures, and supports embedded digital receiver commercial products and related signal processing components. Texas-based.

x

BAE Systems plc Perimeter Internetworking Corp. $233 Provides Security-as-a-Service security solutions. Connecticut-based. x

Belden Inc. Tripwire, Inc. $710Provides IT security and compliance management solutions for enterprises, government agencies, and service providers. Oregon-based.

x

C.H. Robinson Company, Freightquote.com, Inc. $365 Operates as an online freight shipping brokerage company in North America. Kansas City-based. x

Carlisle Companies Incorporated LHi Technology (S) Pte Ltd. $195 Manufactures OEM medical cable interconnects and assemblies.

Singapore-based.

Churchill Downs Inc. Big Fish Games, Inc. $835 Develops casual games for PCs and mobile devices worldwide. California-based. x

Cornerstone OnDemand Evolv, Inc. $45 Develops software-as-a-service platform based call center hiring management solutions. San Francisco-based. x

Premium Value M&A

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

Q4 - 2014

CORE TRANSACTIONS (CONTINUED)


ALERT VC-BACKED

Cox Automotive, Inc. Xtime Inc. $325Provides hosted Web scheduling and customer relationship management solutions for automotive service departments in North America. California-based.

x

Cuscal Limited Strategic Payments Services Pty Ltd. $33

Designs and develops electronic payments processing solutions for financial institutions, retailers, and businesses in Australia. Sydney-based

Danube Private Holdings II, LLC Digital River Inc. $911

PRovides end-to-end cloud-commerce, payments, and marketing solutions to various companies in the United States, Europe, the Asia Pacific, and South America. Minnesota-based.

Dealertrack Technologies, Inc. Incadea Plc $209 Provides enterprise software solutions and services to the automotive

retail and wholesale markets. The Channel Islands-based.

DHC Software Co., Ltd.Shenzhen Siecom

Communication Technology Development Co Ltd

$131 Develops communication products including mobile phones. China-based.

DHX Media Ltd. Nerd Corps Entertainment Inc. $50 Creates, develops, produces, and distributes animated projects for

television, online, and mobile platforms. Canada-based.

Digital Domain Holdings Limited

Beijing Carina International E-Commerce Co. Ltd $40 Distributes skin care products online. Beijing-based.

Digital Turbine, Inc. Appia, Inc. $75Operates a mobile user acquisition platform, provides mobile performance solutions for developers, publishers, and advertisers worldwide. UK-based

Doro AB CareTech AB $31 Develops and markets social alarm and personal security products. Germany-based.

Econet Wireless International (Pty) Ltd. Telecel Globe $65 Provides global system for mobile communication services. Egypt-

based.

Elbrus Capital Investment Adviser HeadHunter Company $209 Provides online resources for job hunting and personnel hiring for mid-

level and top managers. Moscow-based.

Fuchun Communications Co., Ltd.

Shanghai The Dream Network Technology Co. Ltd. $146 Provides Web games, social games, mobile Internet games, and

various cross platform gaming services. Shanghai-based.

Premium Value M&A

7

Q4 - 2014

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



ALERT VC-BACKED

GTT Communications, Inc. United Network Services, Inc. $40

A voice and data carrier company, provides business-grade Internet and private networking solutions for enterprise businesses, small-to-midsize businesses, and service providers in the United States. Texas-based.

Guangbo Group Stock Co., Ltd.

Tibet Shannan Yun Media Co., Ltd. $130 Offers internet advertising services. China-based.

GuestLogix Inc. OpenJaw Technologies, Ltd. $41 Provides travel distribution software solutions to the travel industry. Ireland-based.

Host Europe WVS Limited intergenia Holding GmbH $261 Provides Web hosting and server solutions. Germany-based.

Ideagen PLC Gael Limited $28 Designs and develops business and quality management solutions. UK-based.

Imperus Technologies Corp. Diwip Ltd. $100 Develops social and mobile gaming for PC, Mac, iOS, and Android

platforms. Israel-based.

Insider Group Perfect World Co., Ltd. $952 Operates as an online game developer and operator in the People's Republic of China, North America, and internationally. Beijing-based.

Internet Patents Corporation Prism Technologies LLC $82

Develops new internet security technologies and offers intellectual property licensing and technology research and development services. Nebraska-based.

x

j2 Global, Inc. Carbonite, Inc. $366 Provides cloud backup solutions with access to files stored in its servers in the United States. Boston-based.

Fuchun Communications Co., Ltd.

Shanghai JunMeng Network Technology Co., Ltd. $145 Develops games. China-based.

Jiangsu Phoenix Publishing & Media Corporation Limited

AdSame Networks Technology Incorporated $56 Operates as an intelligent digital marketing engine. Shanghai-based. x

Premium Value M&A

8

Q4 - 2014




ALERT VC-BACKED

Lindsay Corporation Elecsys Corporation $73

Provides machine to machine (M2M) communication technology solutions, data acquisition and management systems, and custom electronic equipment for critical industrial applications worldwide. Kansas-based.

LivePerson Inc. ContactAtOnce! LLC $70 Provides Website chat software that enables online shoppers to connect and chat. Georgia-based. x

MedImmune, LLC Definiens AG $150Develops intelligent software solutions for digital image analysis, knowledge management, and other simulation activities. Germany-based.

Nemetschek AG Bluebeam Software, Inc. $100 Develops PDF solutions for digitizing project communications. California-based.

Nets Holding A/S DIBS Payment Services AB $108 Provides online payment services in the Nordic countries. Sweden-based. x

New Call Telecom Ltd Nimbuzz B.V. $175 Provides call, chat, and messaging applications for mobile phones and Internet. India-based.

New Call Telecom Ltd WaveCrest (UK) Ltd. $240Provides voice services to residential, pre-paid calling card, and wholesaler carrier markets in Europe and the United States. London-based.

Newtree Group Holdings Limited DigiSmart (Group) Limited $40 Develops enterprise resource management and mobile applications.

British Virgin Islands-based. x

Next Co., Ltd. Trovit Search S.L. $101 Operates a search engine for classified ads of real estate, jobs, cars, and vacation rentals. Spain-based.

Nordic Capital VIZRT Ltd. $369Provides real-time 3D graphics, studio automation, sports analysis, and asset management tools for the broadcast industry. Norway-based.

Novacap Investments, Inc. Dialogic, Inc. $94

Provides various communication products and technologies to wireless and wireline service providers for the transport, transcode, manage, and optimize video, voice, and data traffic. California-based.

Open Joint Stock Company Long-Distance

and International Telecommunications

Rostelecom

RuTube $88 Operates an internet portal that allows people to upload, tag, and share personal video clips. Russia-based.

Premium Value M&A

9

Q4 - 2014




ALERT VC-BACKED

Open Text Corporation Actuate Corporation $307 Provides software solutions and services to corporate and government customers worldwide. California-based.

PCCW Global Limited; LM Ericsson Ltd.; Sahara

Energy Resources Ltd; Prime Union Investment Limited; Olutoyi Estate

Development & Services Limited; Legal Resources

Alliance & Co

Nigerian Telecommunications Limited $252 Provides telecommunication services. Nigeria-based.

Perficient Inc. Zeon Solutions, Inc. $36

Provides enterprise e-commerce, Web solutions, and custom application development services to advertising specialty, direct marketing, industrial business-to-business, education, and business-to-consumer industries worldwide. Wisconsin-based.

Pluralsight LLC Smarterer, Inc. $75Operates a skill ranking platform. Smarterer scores and validates individuals’ digital, social, and technical skills using crowd-sourced test design and an adaptive scoring algorithm. Boston-based.

x

Proofpoint, Inc. Nexgate Corporation $35 Provides cloud-based social media security and compliance solutions. California-based. x

RNTS Media N.V. Fyber $190

A Web-based technology advertising service company, empowers application developers to execute smart advertisement monetization strategies across various connected devices through a unified mobile supply side platform. Germany-based.

x

RTL Group SA StyleHaul Inc. $107 StyleHaul Inc. owns and operates an online video community through which it provides makeup and style tutorial videos. California-based. x

Spirit Communications, Inc. SCANA Communications, Inc. $157

Provides bandwidth, Ethernet, communication tower, and data center services to telecommunication service providers, enterprises, and governmental agencies in South Carolina, North Carolina, and Georgia. South Carolina-based.

Tack Fiori International Group Limited

Beijing Feiliu Jiutian Technology Co., Ltd. $625

Develops mobile applications for interest-based online communities including mobile technology, automotive, health care, entertainment, books, games, and others. China-based.

Telstra Corporation Limited Pacnet Limited $697

Provides managed data connectivity solutions to telecommunications carriers, large multinational enterprises, and government entities in the Asia-Pacific region and internationally. Hongkong-based.

Premium Value M&A

10

Q4 - 2014




ALERT VC-BACKED

The Descartes Systems Group Inc AirClic, Inc. $30

Provides cloud-based enterprise mobility software solutions to automate and streamline paper-based processes. Pennsylvania-based.

Vector Capital ChyronHego Corp. $117

Provides software and hardware products and solutions that are designed to provide broadcast-quality, real-time, graphics creation, enhancement, and playout for television stations, networks, video production, and post-production markets worldwide. New York-based.

Vonage Holdings Corporation Telesphere Networks, Ltd. $114

Telesphere Networks, Ltd. provides managed cloud communication services to small and medium-sized businesses, and call center operators in the United States. Arizona-based.

Wirecard AG The AMARA Group Limited $45 Operates as a software developer and offers CRM enhanced payment solutions. South Africa-based.

Xiamen 35.Com Technology Co., Ltd. Shenzhen Daoxi Technology $134 Develops web and mobile games. China-based.

Yahoo! Inc. BrightRoll Inc. $640Provides digital video advertising solutions to advertisers and agencies, publishers, and developers to broadcast in Web, mobile, and connected TV. San Francisco-based.

x

Premium Value M&A

11

Q4 - 2014


OTHER NOTABLE DEALS


ALERT VC-BACKED

BT Group plc EE Limited $19,551 Operates as a digital communications company in the United Kingdom. UK-based.

Ontario Teachers' Pension Plan; Thoma Bravo, LLC; Ontario

Teachers' Pension Plan - International Investments

Riverbed Technology, Inc. $3,866 Provides application performance infrastructure solutions in the United States and internationally. San Francisco-based.

Bollore; Compagnie du Cambodge; La Société

Industrielle et Financière de l'Artois

Havas $3,356 Operates as an advertising and communications services company in France. France-based.

Cable & Wireless Communications Plc

Columbus Communications Inc. $3,087

Provides cable television services‚ digital video, high speed internet access‚ digital telephony, telecom capacity and Internet protocol (IP), and corporate data services through its subsidiaries in the Caribbean and Central America. Bahamas-based.

x

NJJ Capital Orange Communications SA $2,856 Provides wirefree communications services to business and private customers in Switzerland. Switzerland-based. x

AT&T, Inc. GSF Telecom Holdings, S.A.P.I. de C.V. $2,500 Provides wireless telecommunication services. Mexico-based. x

Iron Mountain Inc. Recall Holdings Limited $2,354 Provides information management solutions in the Americas, Europe, Australia and New Zealand, and Asia. Australia-based. x

- Portugal Telecom, SGPS S.A. $1,468 Provides various telecommunications and multimedia services in Portugal, Brazil, and internationally. Portugal-based.

Centerbridge Partners, L.P. IPC Systems, Inc. $1,200 Provides trading communication systems to investment banks, hedge

funds, and investment managers. New Jersey-based.

CVC Capital Partners Limited Sky Betting & Gaming $1,132 Provides online betting services. UK-based.

Oracle Datalogix undisclosed Tracks and analyzes consumer purchases data to help marketers and media companies with better ad targeting. x

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

Q4 - 2014Premium Value M&A

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

mailto:[email protected]

m&a snapshot q4 2014

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