M&A Snapshot Q2 2014

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M&A SNAPSHOT
2012 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 lings and public information
a) M&A exits within Mobile | Internet | Digital Media sectors
b) Core M&A exits are dened 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 dened 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
45
61
41
33 34
63
44
57
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 SECTOR
Enterprise 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 $41
Total 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
Marketing Hardware
Network
Infrastructure
Security
Media
Service
Provider
Number of Deals
by Sector
Source: Architect Partners LLC, Capital IQ, company lings 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 DEALS
Target | Acquirer
RealPage | Kigo
Red Hat | eNovance
Nest Labs | Dropcam
AOL | Convertro
Intuit | Lettuce
Twitter | TapCommerce
Google | Skybox Imaging
Bally Technologies | DragonPlay
IBM | Silverpop
Chegg | InstaEDU
Audience | Sensor Platforms
Google | 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 dened
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)
Source: Architect Partners LLC, Capital IQ, company lings and public information
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 | $418mm
Check
Customerlink
Lettuce
MOST ACTIVE
ACQUIRERS LTM
Source: Architect Partners LLC, Capital IQ, company lings and public information
Quest Visual
Rangespan
Skybox Imaging
StackDriver
Titan Aerospace
Afterlive.tv
Apps & Zerts
Gnip
Namo Media
TapCommerce
CORE TRANSACTIONS
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP 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 ofine 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 efectiveness using cross-channel attribution of
online and ofine media channels. Santa Monica, CA - based.
x
Audience Sensor Platforms $41
Develops 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 classieds. 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 xed wireless solutions. Xiamen, China - based.
Premium Value M&A
6 Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration
Q2 - 2014
CORE TRANSACTIONS (CONTINUED)
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Beijing Enlight Media
Beijing Refeng Hudong
Network
$29
Develops 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 HowStufWorks $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 $30
Online 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.
Shefeld, United Kingdom - based.
dunnhumby sociomantic labs $206
Develops real-time bidding solutions for advertisers. Berlin, Germany -
based.
FireEye nPulse Technologies $70
Provides ow and packet capture solutions for telcos, nancial
institutions and government agencies. Charlottesville, VA - based.
Founder Technology
Founder Broadband Network
Service
$120
Provides Internet services and broadband CPN access. Beijing, China -
based.
Google Skybox Imaging $500
High-resolution space-based imagery of Earth. Focuses on
commercial consumers of satellite imagery. Mountain View, CA -
based.
x
Premium Value M&A
7 Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration
Q2 - 2014
CORE TRANSACTIONS (CONTINUED)
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
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
Ofers 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 $916
Suite 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 $77
Provides 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 prole. Atlanta, GA - based.
x
Intuit Check $360
Mobile payment company which provides Check, a nance 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 ofering mobile communications and
technical assistance services. Abidjan, Ivory Coast - based.
John Wiley & Sons E-Learning $175
Dba Crossknowledge, provides a technological platform made up of
apps for training that leverage social learning games. Suresness,
France - based.
Premium Value M&A
8 Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration
Q2 - 2014
CORE TRANSACTIONS (CONTINUED)
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
LDC Anite Travel $75
Provides reservation and e-commerce solutions to travel companies.
United Kingdom - based.
Mercadolibre VMK $40
Operates websites ofering info regarding real estate properties in
Mexico and Chile. Brazil - based.
Monitise Markco Media $94
Provides voucher promotion and group buying deals and ofers.
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
$31
Online-to-ofine mobile marketing platforms, which includes
iButtery, 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 - $350
Mobile 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 $38
Online 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
9 Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration
Q2 - 2014
CORE TRANSACTIONS (CONTINUED)
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
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 ofers short messaging solutions. Beijing, China - based.
x
Shenzhen ZQGame Beijing Autothink Technology $119
Operates 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 $182
Media 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
Unied data management and data protection solutions. San Diego,
CA - based.
Staples PNI Digital Media $67
Digital 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 $290
Mobile 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
$318
Mobile 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
10 Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration
Q2 - 2014
CORE TRANSACTIONS (CONTINUED)
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
TOTVS
Virtual Age Solues Em
Tencologia
$34
Develops cloud-based solutions for fashion and retail apparel.
Cianorte, Brazil - based.
Tuition Build Limelight Networks $660
Content delivery services to deliver rich media les (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
$100
Provides network quality management and business process
management solutions for telecom operators. China - based.
Webedia
L'Odysse Interactive
JEUXVIDEO.COM
$123
Ofers 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.
11 Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration
Q2 - 2014
Premium Value M&A
OTHER NOTABLE DEALS
BUYER TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Apple
Beats Electronics and
Beats Music
$3,000
Manufactures 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 $1,100
Operates 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 $7,725
Provides 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 NA
Cloud-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.
12 M&A transactions with consideration in excess of $1B or with unannounced transaction values
Q2 - 2014
Premium Value M&A
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