q2 2014 m&a snapshot

M&A Snapshot Q2 2014

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

M&A SNAPSHOT2012 2013

Total M&A Exits (a)

2014

Proportion Premium Value (c)

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

$9.7$11.6$13.7

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

70

4561

413334

63

4457

Core M&A Exits (b)

Consideration Exchanged $billions (b)

400 364 466 387 327 406 416 494

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

30% 27% 21% 32% 42% 17% 18% 29%

Q2 - 2014

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

464

4%

27%

Q2 2014 M&A activity up 112% year-over-year

Highest consideration exchanged since Q2 2012

$256

M&A BY SECTOREnterprise Application was the most active sector of M&A in terms of number of deals, with 15 acquisitions announced in Q2 valued at $2.1b. Digital Marketing also exhibited strong activity, with 11 transactions valued at $2.3b. Noteworthy deals include Operas acquisition of AdColony, Amobees acquisitions of Adconion and Kontera, AOLs acquisition of Convertro and Acxioms acquisition of LiveRamp. !

Core Transactions by Sector

$1,257 $1,215 $219 $1,643$2,258 $594$2,071 $41Total sector value in $mm 3

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

SECTORS

$2,488

1%14%

4%

13%

4%7%

3% 16%

21%

1%

14%

Commerce

Consumer Application

Analytics Application

Enterprise Application

Digital MarketingHardware

Network Infrastructure

Security

Media

Service Provider

Number of Deals by Sector

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

Q2 - 2014

$58

App Development

Intuit | Check

Priceline | OpenTable

Acxiom | LiveRamp

FireEye | nPulse

NPC Group (Vantiv) | Mercury Payment

Opera | AdColony

Amobee (SingTel) | Kontera

0 1.3 2.6 3.9 5.2 6.5 7.8 9.1 10.4 11.7 13

PREMIUM VALUE DEALSTarget | Acquirer

RealPage | KigoRed Hat | eNovance

Nest Labs | DropcamAOL | Convertro

Intuit | LettuceTwitter | TapCommerce

Google | Skybox ImagingBally Technologies | DragonPlay

IBM | SilverpopChegg | InstaEDU

Audience | Sensor PlatformsGoogle | Divide

0 1.3 2.6 3.9 5.2 6.5 7.8 9.1 10.4 11.7 13

x LTM Revenue

Target | Acquirer x Invested Capital

Total M&A exits within the Internet | Mobile | Digital Media sectors !Premium Value is defined as greater than 5 times invested equity capital or 5 times the estimated last 12 months revenue (LTM)

21.1x

4

Indicates the LTM revenue multiple of the acquirer at the time of acquisition relative to the LTM revenue multiple paid for target (darker)


Q2 - 2014

18.0x

Indicates the invested capital multiple

1

1. FireEye is a private company, no LTM revenue multiple available.

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

9.

5 / 9 | $450mm

Number of new deals in Q2 / total deals last 4 quarters | total spend last 4 quarters (a)

5

1.1 / 25 | $120mm

Meh Labs

2.12 / 26 | $4.6B

Adometry Alpental Appetas Appurify Divide Dropcam mDialog

3.2 / 12 | $18.9B

ProtoGeo Pryte

4.

2 / 9 | $270mm

Cognea Silverpop

5.2 / 12 | $3.0B

Beats Electronics Beats Music

6.1 / 7 | $60mm

Ginger Software

7.1 / 8 | $800mm

AppTek Partners (Machine Translation Tech)

8.1 / 7 | $1.9B

LiveLOOK

10.3 / 8 | $418mm

Check Customerlink Lettuce

MOST ACTIVE ACQUIRERS LTM


Quest Visual Rangespan Skybox Imaging StackDriver Titan Aerospace

Afterlive.tv Apps & Zerts Gnip Namo Media TapCommerce

CORE TRANSACTIONS

BUYER TARGET TRANSACTION VALUE ($MM) TARGET DESCRIPTIONAP M&A ALERT VC-BACKED

Abertis Infraestructuras Tower Co $130 Designs multi-operator installations on motorway sites to house antennae and telecom equipment. Rome, Italy - based.

Acxiom LiveRamp $310 Online platform for CRM retargeting and data on boarding, bringing clients oine data online. San Francisco, CA - based. x

Alaska Dispatch Publishing Anchorage Daily News $34

Provides online news, information and communication services. Anchorage, Alaska - based.

Amobee Adconion $229 Cross-channel digital distribution platform enabling video, email, display and social advertising.

Amobee Kontera $150 In-text advertising solution which analyzes the context of web pages to place relevant ads behind keywords. San Francisco, CA - based. x

AOL Convertro $101 Measures ad campaign eectiveness using cross-channel attribution of online and oine media channels. Santa Monica, CA - based. x

Audience Sensor Platforms $41Develops algorithmic software that takes commodity sensor data and interprets it into position, motion and contextual info. San Jose, CA -based.

x

Aurea Software Update Software $54 Develops web-based CRM software. Vienna, Austria - based.

Axel Springer Zap Group $40 Operates consumer Internet portals, including zap Yellow Pages and zap Price Comparison. Ramat Gan, Israel - based.

Axel Springer Cora-Tell Internet $233 Owns and operates web portals and digital classifieds. Israel - based.

Bally Technologies Dragonplay $100 Develops digital social games for smartphones and social networks. Tel Aviv, Israel - based. x

Beijing Bewinner Communications Zm Software Technology $58

Operates a distribution platform for mobile applications. China - based.

Beijing Boomsense Technology Linktop Technology $39

Develops telecom devices, including 3G/4G modules, smart wearable devices and fixed wireless solutions. Xiamen, China - based.

Premium Value M&A

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

Q2 - 2014

CORE TRANSACTIONS (CONTINUED)


Beijing Enlight Media Beijing Refeng Hudong Network $29Develops and operates online mobile games. Hangzhou, China - based.

Beijing Jiaxun Feihong Electrical Castel Intelligent $33

Develops supervision application system based on Internet of Things technology for government agencies and enterprises. China - based.

Beijing TRS Information Topwalk $97 Secure data exchange and processing. China - based.

Bluecora HowStuWorks $45 Publishes online information on auto, electronics, entertainment, culture, lifestyle and home and garden. Atlanta, Georgia - based.

Cheetah Mobile Zoom Interactive Network $30 Mobile advertising provider, which also resells Facebook and Google ads. Hong Kong - based.

Chegg InstaEDU $30Online on-demand tutoring including video, audio and text chat, shared whiteboard and homework uploading. San Francisco, CA - based.

x

Clarity Telecom! WOW! Systems $262 Broadband communication, Internet and cable systems. Rapid City and Sioux Falls, South Dakota - based.

Consolidated Communications Enventis $369

Dba HickoryTech and Enventis, provides data, Internet, voice and VoIP services. Mankato, MN - based.

Darwin Private Equity ask4 $36 Managed telecom services including broadband, Internet and VoIP. Sheeld, United Kingdom - based.

dunnhumby sociomantic labs $206 Develops real-time bidding solutions for advertisers. Berlin, Germany - based.

FireEye nPulse Technologies $70 Provides flow and packet capture solutions for telcos, financial institutions and government agencies. Charlottesville, VA - based.

Founder Technology Founder Broadband Network Service $120Provides Internet services and broadband CPN access. Beijing, China - based.

Google Skybox Imaging $500High-resolution space-based imagery of Earth. Focuses on commercial consumers of satellite imagery. Mountain View, CA - based.

x

Premium Value M&A


Q2 - 2014



Google Divide $130 Enterprise mobile solutions to create a secure workspace on employee devices. New York City - based. x

GTCR Vocus $481 Cloud-based marketing and public relations software enabling companies to acquire and retain customers. Beltsville, MD - based.

Hangzhou New Century Information Technology

Beijing Digital Grid Technology $344

Oers SnailMobile, a mobile phone book application allowing communication among friends. Beijing, China - based.

Huayi Brothers Interactive Shenzhen Huayuxun Tech $43 Operates Maizuo.com, an online movie ticket booking portal. Shenzhen, China - based.

Hunan Tianrun Enterprises Holding Xu You Game $98 Develops sports - based computer games. China - based.

Independent Media Network18 Media $916Suite of digital Internet properties, e-commerce and broadcasting content including In.com, Moneycontrol.com, Cricketnext.in and Firstpost.com. Noida, India - based.

Insight Venture Partners; GIC Special Investments iParadigms $752

Cloud-based educational technologies to prevent plagiarism, verify content and evaluate students. Newcastle, United Kingdom - based.

ISIS Equity Partners Metronet UK $77Provides hybrid connectivity solutions, including high speed connectivity, Ethernet networks and VoIP. Manchester, United Kingdom - based.

IBM Silverpop $270 Provides digital marketing software by using customer data and individuals behavior profile. Atlanta, GA - based. x

Intuit Check $360 Mobile payment company which provides Check, a finance app allowing customers to pay bills. Palo Alto, CA - based. x

Intuit Lettuce $30 Web-based platform to help SMBs manage orders and inventory. Venice, CA - based. x

Itissalat Al-Maghrib (IAM) ATLANTIQUE Telecom Group $650 Telecom service provider oering mobile communications and technical assistance services. Abidjan, Ivory Coast - based.

John Wiley & Sons E-Learning $175Dba Crossknowledge, provides a technological platform made up of apps for training that leverage social learning games. Suresness, France - based.

Premium Value M&A


Q2 - 2014



LDC Anite Travel $75 Provides reservation and e-commerce solutions to travel companies. United Kingdom - based.

Mercadolibre VMK $40 Operates websites oering info regarding real estate properties in Mexico and Chile. Brazil - based.

Monitise Markco Media $94 Provides voucher promotion and group buying deals and oers. London, United Kingdom - based.

Nest Labs Dropcam $555 WiFi video monitoring camera and cloud service. San Francisco, CA - based. x

NetDragon WebSoft Cherrypicks International Holdings $31Online-to-oine mobile marketing platforms, which includes iButterfly, keewee and Smart:D. British Virgin Islands - based.

Numerex Omnilink Systems $38 SaaS location-based services platform to track and monitor assets, vehicles, loved ones and employees. Alpharetta, GA - based. x

Numericable Group Omer Telecom $446 Mobile telecom operator. Levallois Perret, France - based.

Opera AdColony $75 - $350Mobile video advertising company featuring full-screen HD video ads played instantly across an extensive network of iOS and Android apps. Los Angeles, CA - based.

x

Pluralsight PL Studios $45 Dba Digital-Tutors, provides professional video tutorials and courses. Oklahoma City, OK - based.

Powa Technologies MPayMe $75 Develops secure mobile payment solutions as well as loyalty integration and geo-location. Wan Chai, Hong Kong - based.

RealPage Kigo $38Online vacation rental software. Also includes vacation rental websites, templates and content management systems. Philadelphia, PA - based.

x

Red Hat eNovance $95 High-end hosting and managed services focused on OpenSource and OpenCloud technologies. Paris, France - based. x

Sandton Capital Partners Free Lance-Star Publishing $30 Multimedia publishing services, including directory phone books and radio stations. Fredericksburg, VA - based.

Premium Value M&A


Q2 - 2014



Shanghai Ace UUU09.com $30 Develops an online game information portal. Xian, China - based.

Shenzhen Infotech Technologies Beijing eMay Softcom $48

Mobile phone-based business solutions incorporating ERP and CRM. Also oers short messaging solutions. Beijing, China - based. x

Shenzhen ZQGame Beijing Autothink Technology $119Operates XiaoAo game store, which is one of the largest wireless entertainment online communities with over 80mm users. Beijing, China - based.

Shenzhen ZQGame Jiangsu Mingtong Tech $91 Develops online games. China - based.

Sony Pictures CSC Media Group $182Media company operating a portfolio of television channels and complementary websites. Also owns skills-based gaming websites for kids. London, United Kingdom - based.

Sphere 3D Overland Storage $89 Unified data management and data protection solutions. San Diego, CA - based.

Staples PNI Digital Media $67Digital content ordering system for personalized products that can be accessed by consumers via online, mobile app or through in-store kiosks. Vancouver, Canada - based.

Syniverse Technologies Aicent $290Mobile data network services for wireless operators, including IP packet exchange, WiFi roaming and short messaging service exchange. San Jose, CA - based.

x

Talkweb Information System

Shanghai Huorong Technology $130 Mobile online game development services. Shanghai, China - based.

TELUS Data & Audio-Visual Enterprises $318Mobile carrier providing wireless telecommunication services in Canada. Vaughan, Canada - based.

The Advisory Board Healthpost $25 Web-based appointment scheduling software for the health care industry. Houston, TX - based.

Premium Value M&A


Q2 - 2014



TOTVS Virtual Age Solues Em Tencologia $34Develops cloud-based solutions for fashion and retail apparel. Cianorte, Brazil - based.

Tuition Build Limelight Networks $660Content delivery services to deliver rich media files (video, music, games and software) and mobile delivery services that help publishers deliver content to media-enabled mobile devices. Tempe, AZ - based.

Twitter TapCommerce $100 Platform that allows users to retarget, engage and optimize mobile audiences. New York City - based. x

United Electronics Beijing Tescomm Communication $100Provides network quality management and business process management solutions for telecom operators. China - based.

Webedia L'Odysse Interactive JEUXVIDEO.COM $123Oers an online news magazine for video games, personal computers and consoles. Aurillac, France - based.

Zayo Group Neo Telecoms $80 Provides network and hosting services, including broadband Ethernet and telephony services. Paris, France - based.

Zendesk Zopim Technologies $30 Online chat software for online business owners. Also includes live support and customer help. Singapore - based.


Q2 - 2014Premium Value M&A

OTHER NOTABLE DEALS


Apple Beats Electronics and Beats Music $3,000Manufactures consumer headphones, earphones and speakers. Beats Music provides online music streaming. Santa Monica, CA - based.

AT&T DirecTV $68,896 Provides digital television entertainment services. El Segundo, CA - based.

FNI Optimum Telecom $2,643 Wireless communication services, including voice messaging, multimedia and directory services. Alger, Algeria - based.

KKR Internet Brands $1,100Operates media and e-commerce sites related to consumer purchases covering automotive, careers, health, home, legal, travel, leisure, shopping, etc. El Segundo, CA - based.

Level 3 Communications TW Telecom $7,725Provides managed network services, specializing in business Ethernet, data networking, IP based virtual private network and VoIP. Littleton, CO - based.

NPC Group Mercury Payment Systems $1,650 Provides payment technology and services for SMBs, merchants and resellers. Durango, CO - based.

Priceline OpenTable $2,613 Provides electronic restaurant reservation solutions. San Francisco, CA - based.

SAP SeeWhy NACloud-based platform that analyzes real-time shopper data from consumer actions on web, mobile and social network sources to determine the next best marketing action. Boston, MA - based.

Zebra Technologies Motorola Solutions, Enterprise Business $3,450 Develops rugged mobile computers, tablets and barcode scanners.

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

Q2 - 2014Premium Value M&A

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

q2 2014 m&a snapshot

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