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In This Issue of JEGIs Client Briefing Newsletter...

2012 Outsell Signature Event M&A Playbook 2.0 The Economic Outlook The Social Media Ecosystem Report JEGI Q3 2012 M&A Overview & Outlook M&A Conversation Exceptional Transaction Experience

Dear Mr. Warfield, Well, the election is finally behind us, with the results hugely disappointing for some, highly pleasing to others, and Americans split virtually in two by the popular vote for President. Nevertheless, as we prepare for the winter months ahead, were hopeful that a new sense of purpose and a consensus-driven approach to Washington politics will provide a clear direction for this country and its economic policies over the next four years. There have been a couple recent signs that the economy might be pushing forward (e.g., the latest manufacturing numbers and two months of increased consumer confidence), but of course we remain wary of important issues that continue to hold us back (most notably, the historically huge Federal deficit and the rapidly-approaching fiscal cliff). Still, with the election decided, which should help bring some stabilization and certainty to the marketplace, businesses may begin to reinvest for growth both in technology and in people. To help us get there, however, we would encourage the Administration to tone down its often adversarial approach to the business community, which has helped create a strong sense of uncertainty among businesses and investors about the business climate. This is a key topic for the enlightened dialogue that needs to happen between both parties, if the country is going to fully recover from its snails pace of growth. On a brighter note: early last month, more than 150 senior executives and thought leaders attended the sixth annual Outsell Signature Event, which JEGI co-produces. It was held at the Four Seasons Hotel in Hampshire, UK, and there was a buzz and an overall upbeat mood among the attendees. Appropriately titled Break and Reset, the event featured off the record keynote presentations from such global industry leaders as Martin Morgan, Chief Executive, DMGT; David Craig, President, Financial & Risk, Thomson Reuters; David Williams, Chairman & CEO, Merkle; and many others. Economist Martin Wolf of the Financial Times, an on the record presenter, offered an air of optimism, saying, it is overwhelmingly probable that the US will be the most dynamic of the big economies. However, he also cautioned, We are not living in a normal world it is a contained depression world, due to the unprecedented levels of government stimuli. Our Client Briefing covers several other on the record presentations, including one from Ned May, VP & Lead Analyst, Outsell and the fireside chat about McGraw-Hills transformation that I had with Lou Eccleston, President of S&P Capital IQ and Chairman of the Board of S&P Dow Jones Indices.
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email : Webview : JEGI November 2012 Client Briefing Newsletter

Capital IQ and Chairman of the Board of S&P Dow Jones Indices. You will also find an insightful article on successfully integrating digital acquisitions (M&A Playbook 2.0), authored by Christopher Vollmer, Gregory Springs and Harry Hawkes of Booz & Co. Digital media and technology companies are under intense pressure to be more innovative in their offerings and transform their business models, which has led to an increasing reliance on acquisitions. With the market moving quickly, speed of integration is critical for success. The old integration benchmarks are no longer effective, and companies need a more contemporary playbook for acquisition integration. Six key success factors are outlined in this Client Briefing article. Amir Akhavan, a JEGI Director focused on marketing services, technology and interactive, recently prepared a report published by the Interactive Advertising Bureau (IAB) titled The Social Media Ecosystem Rise of Users, Intelligence and Operating Systems. Social is changing the way companies operate across all departments marketing; HR, R&D, customer service, etc. It enables the capture of realtime information for CRM purposes, opportunities creating for

companies to gather and access rich data to drive intelligence across their organizations. Youll find excerpts of the report in this Client Briefing and the full report here.

Meanwhile, M&A deal activity reached impressive highs through the first three quarters of 2012, despite economic and political uncertainty. Smaller deals have dominated the market (91% of transactions during the period were less than $50 million in value), and strategic companies were buyers on 85% of deals in 2012 through September, as they continue to invest in higher growth revenue streams and new services for their customers. Private Equity firms have also become more active acquirers, especially on larger deals (they accounted for 26% of the
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email : Webview : JEGI November 2012 Client Briefing Newsletter

especially on larger deals (they accounted for 26% of the transactions over $100 million in value). PE firms have historically high levels of capital to put to work, and we expect them to continue to increase their activity as buyers in the next 12 months. Through October, JEGI completed 11 transactions, releasing nearly $700 million of shareholder value, across the media, information, marketing and technology sectors. The third quarter saw four completed transactions, including the sale of InfoGroups OneSource, which offers sales enablement and business intelligence SaaS solutions, to Cannondale Investments and GTCR; the sale of DMGTs Evanta, a leadership platform for Fortune 1000 executives, to Leeds Equity for $94 million; the sale of MyMediabox, a provider of SaaS-based applications for the consumer products licensing industry, to Jonas Software; and the first deal completed by JEGI and its UK partner Clarity the sale of Adam Matthew Digital, which provides online primary source collections for academic research, to Sage. JEGI is optimistic about M&A activity heading into 2013, particularly if both sides of the aisle in Washington can work together to turn the fiscal cliff into a mere speed bump on the road to full recovery. Typically, cash and confidence are the two key drivers of M&A. The market has historically high levels of cash, held by both strategic companies and PE firms. However, a lack of confidence has prevented strategic companies from making larger, transformational acquisitions. The resolution of the election could provide a certain level of certainty to the marketplace, and with certainty comes confidence. This could lead to companies returning to the M&A market in a big way in the year ahead. We hope you enjoy this edition of our Client Briefing newsletter, and feel free to contact us with any questions regarding the marketplace and/or our services.

Sincerely,

Wilma H. Jordan Chief Executive Officer wilmaj@jegi.com (212) 754-0710

PS We are pleased to announce that JEGI is a sponsor of the SIIAs 2013 Information Industry Summit taking place January 30-31 at Pier Sixty in New York City. This annual event offers a top-notch line-up of c-level executive speakers and thought leaders and brings together an A-list from across the information industry. To register, visit: http://www.siia.net/iis/2013/register.asp. Use the promo code IISJEGI and qualify for a $300 registration discount off current non-member rates.

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