MA Snapshot Q4 2013

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M&A SNAPSHOT
Q4 2013


JANUARY 6
TH
, 2014
OVERVIEW COMMENTARY

Q4 2013 M&A activity continued Q3’s upward momentum. There were 61 M&A
transactions within the $25mm - $1b range, up 49% from the 41 deals in the
previous quarter. Total consideration paid for these 61 deals was $9.6b, an
increase of 19% from Q3. The increase in M&A activity was a result of many
modest-sized deals, as median transaction size for Q4 fell by 29% to $80mm.
Overall, 2013 had 18% fewer transactions than 2012.

Network optimization, gaming and digital advertising were important M&A
trends in Q4 2013:

• Network optimization accounted for 10% of M&A activity, led by JDS Uniphase’s
$200mm acquisition of Network Instruments, Ixia’s $190mm acquisition of Net
Optics and Amdocs’ $129mm acquisition of Celcite.

• Gaming M&A, accounting for 9% of M&A deals, witnessed a resurgence in Q4
largely driven by overseas activity. Gaming also had two $1b+ acquisitions, with
SoftBank acquiring Supercell for $1.5b and Baring Private Equity acquiring Giant
Interactive for $1.6b.

• Digital advertising made up 8% of M&A activity, with noteworthy deals including
Neustar’s $119mm acquisition of Aggregate Knowledge and Blinkx’s $63mm
acquisition of Rhythm New Media. The marquee digital marketing exit in Q4 was
Oracle’s $1.5b acquisition of Responsys.

Noteworthy premium value acquisitions in Q4 (see our Premium Value M&A
Infographic report) includes Under Armour’s acquisition of MapMyFitness for
$150mm at a 6.4 invested capital multiple, Oracle’s acquisition of Responsys for
$1.5b at a 7.7 LTM revenue multiple and Baring Private Equity’s acquisition of
Giant Interactive for $1.6b at a 6.1 LTM revenue multiple.

Yahoo topped our most active M&A leader board for all four quarters of 2013,
completing Q4 with 8 announced deals and a total of 28 for the entire year.
Virtually all Yahoo M&A this past year were acqui-hire type transactions. The
remaining leaders in Q4 were Google, IBM and Oracle, who all announced 4
acquisitions to finish of the year.
FOLLOWING ANALYSIS

M&A DASHBOARD:


NOTABLE ACQUIRERS:

M&A TRANSACTIONS:


OTHER NOTABLE TRANSACTIONS:

COMING SOON

ANALYSIS OF VC-BACKED M&A EXITS




SUMMARY OF QUARTERLY ACTIVITY IN
NUMBERS AND TONE

ACTIVE INFLUENTIAL BUYER ACTIVITY

SUMMARY OF TRANSACTIONS BETWEEN
$25MM-$1B IN VALUE

SUMMARY OF NOTABLE TRANSACTIONS
WI THOUT ANNOUNCED VALUE OR
ABOVE $1B.

2
M&A SNAPSHOT
42% 42%
54%
43%
$104
$130
$112
$80
34 33
41
61
$6
$7
$8
$10
!"#
!%#
&'( &)(
13
11
14
18
COVERAGE

Architect Partners tracks M&A activity within the
converging Internet | mobile | digital media sectors.
The following assessment is focused on M&A
transactions with announced values of between
$25mm and $1B as these typically represent
successful business-building endeavors.
MARKET TONE

Healthy, with a strong increase in M&A activity
and total consideration paid this quarter.
Strong M&A momentum heading into 2014.
Note: 1) Includes all Internet | mobile | digital media transactions regardless of transaction value.
Transaction values within a range are presented as a mid-point value
Source: Architect Partners, Capital IQ, company filings and public information
3
2011
Q4
M&A Exits (#)............................................................................................



Total Consideration Paid ($b)...............................................................



Venture-Backed M&A Exits (#)............................................................



Median Transaction Size ($mm)..........................................................



U.S.-based Target (%).............................................................................





All Internet | Mobile | Digital Media M&A Exits
(1)
............................
2012
Q1 Q2 Q3 Q4
!"#
%%&
!'%
%''
$12
$14
$12
$10
41
57
44
63
$103
$127
$107
$92
56%
46% 47% 48%
12
16
15
14
2013
Q1 Q2 Q3 Q4
M&A DASHBOARD
The following acquirers are generally active or influential buyers within the Internet | mobile | digital media sectors.
Below, we highlight announced acquisitions by the most active players in the fourth quarter of 2013.
ACQUIRER # TARGETS
8

4

4

4

3

2

2

2

2

2

2

1

4
Wireless Infrastructure Business Unit
Eurasia
NOTABLE ACQUIRERS
ACQUIRER # TARGETS
1

1

1

1

1

1

1

1

1

1

1

1

1


5
NOTABLE ACQUIRERS (Continued)
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
6
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
NON SERVICE PROVIDER TRANSACTIONS
1 12/19/2013 Dealertrack
Technologies
Dealer.com $994 Online platform-based inventory, advertising, website and CRM products for
OEMs, dealerships and retailers. Burlington, Vermont-based.
!
2 11/29/2013 BC Partners mergermarket $626 Global corporate financial news, intelligence and analysis for corporations,
advisory firms, investments banks, law firms, hedge funds and PE firms. London,
United Kingdom-based.
3 12/02/2013 Akamai Technologies Prolexic Technologies $403 Cloud-based security solutions for protecting enterprise IP applications and
datacenters from distributed denial of service (DDoS) attacks. Hollywood,
Florida-based.
!
4 11/18/2013 Apple PrimeSense $345 3D vision technology for digital devices that can see, track and react to user
movements. Tel-Aviv, Israel-based.
!
5 10/01/2013 Experian The 41st Parameter $324 Fraud detection services for travel web sites, eCommerce merchants, financial
institutions and customers in the digital media segment. Scottsdale, Arizona-
based.
!
6 10/10/2013 Wuhu Shunrong Auto
Parts
Shanghai 37wan
Network Technology
$322 Web game development. China-based.
7 10/30/2013 Computer Sciences
Corporation
ServiceMesh $295 Enterprise cloud management platform that automates the deployment of
enterprise applications across private, public and hybrid clouds. Santa Monica,
California-based.
!
8 11/07/2013 Groupon Ticket Monster $260 E-commerce website providing daily and instant deals, travel packages and event
tickets. Seoul, South Korea-based.
9 10/09/2013 Synaptics Validity Sensors $255 Fingerprint authentication platform for smartphones and tablets. Also offers
solutions for identity validation and password replacement. San Jose, California-
based.
!
10 12/11/2013 JDS Uniphase Network Instruments $200 Network monitoring, analysis and management tools for medium and large-sized
enterprises and data centers. Minnetonka, Minnesota-based.
11 12/18/2013 Klarna AB Sofort AG $199 E-commerce provider that allows users to pay online shops without registering
and allows ordering of age-sensitive content/merchandise by using online
identity verification. Gauting, Germany-based.
M&A TRANSACTIONS: $25MM - $1B
M&A transactions that have announced values between $25mm and $1b announced in Q4 2013 within the Internet | mobile | digital media sectors.
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
12 12/04/2013 HomeAway Stayz $198 Holiday rental reservation website. Gladesville, Australia-based.
13 10/29/2013 Ixia Net Optics $190 Real-time network and application monitoring and intelligence provider. Santa
Clara, California-based.
14 12/23/2013 Tribune Company Gracenote $170 Operates large database of music data used by music services (such as Apple's
iTunes) to identify tracks. Also offers technology allowing smartphones and
tablets to identify movie and TV programs. Emeryville, California-based.
15 10/13/2013 Facebook Onavo Mobile $150 Consumer-focused data management applications for smartphones and tablets.
Ramat Gan, Israel-based.
!
16 11/14/2013 Under Armour MapMyFitness $150 Features a suite of fitness-oriented websites and associated mobile applications,
including consumer products MapMyRun, MapMyRide and MapMyWalk. Austin,
Texas-based.
!
17 10/30/2013 Internap Network
Services
iWeb Group $145 Web hosting services through dedicated servers, co-location and shared Web
hosting. Montreal, Canada-based.
!
18 10/16/2013 Ourpalm Shang Game $133 Develops games and applications for social networks. China-based.
19 10/18/2013 Xinghui Auto Model Guangzhou Teamtop
Network Technology
Co.
$133 Develops online games and promotes online advertisements. China-based.
20 11/05/2013 Amdocs Celcite Management
Solutions
$129 Network management and self-optimizing network (SON) solutions. Herndon,
Virginia-based.
21 10/23/2013 Grupa o2 Wirtualna Polska
(Virtual Poland)
$124 Sixth-largest Polish web portal offering services on the Polish market, including
email, web hosting, search engine, online chats and music. Poland-based.
22 11/27/2013 Wirecard AG PT Aprisma Indonesia $120 Online and mobile banking, mobile tokenization tools to protect mobile and
online transactions and B2B and B2C-oriented online payments. Jakarta,
Indonesia-based.
23 10/30/2013 NeuStar Aggregate Knowledge $119 Marketing campaign and predictive analytics platform. San Mateo, California-
based.
!
7
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
M&A TRANSACTIONS: $25MM - $1B (Continued)
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
24 12/03/2013 AmWINS Bliss & Glennon and
eReinsure.com
$84 Online platform for managing placement of facultative reinsurance. Salt Lake City,
Utah-based.
25 12/09/2013 IAC Search ValueClick, Owned
and Operated
Websites Segment
$80 Comprises content and e-commerce websites including Investopedia and
PriceRunner.
26 12/02/2013 NCR Alaric Systems $78 Fraud prevention and intelligent transaction handling solutions for Internet
banking, mobile payments, ATM and POS transactions. London, United Kingdom-
based.
27 12/03/2013 Blinkx Rhythm NewMedia $63 Mobile video advertising across applications and mobile websites. Mountain
View, California-based.
!
28 10/23/2013 Guangdong Alpha
Animation and Culture
5AGame Information
Technology
$60 Designs online mobile games. Beijing, China-based.
29 12/16/2013 Juniper Networks WANDL $60 Network analysis, simulation, optimization and capacity planning providing
greater visibility into network layers. Piscataway, New Jersey-based.
30 11/20/2013 auFeminin.com SAS My Little Paris $54 Shopping, trends and food recommendations website. Also offers monthly
subscription services. Paris, France-based.
31 10/23/2013 Guangdong Alpha
Animation and Culture
Co.
4inch Information
Technology
$53 Multiplayer CCG games for Android and iOS platforms. Shanghai, China-based.
32 12/13/2013 Sonus Networks Performance
Technologies
$53 Diameter and Core Signaling (DSC) for 4G and LTE networks. Rochester, New
York-based.
33 12/03/2013 Premiere Global Services Via-Vox $53 Voice and web conferencing. Richmond, United Kingdom-based.
34 11/07/2013 Dice Holdings OnTargetJobs $50 Online job boards, employment websites and network of local employment sites
featuring news, events and job postings. Centennial, Colorado-based.
35 12/10/2013 Dr. Wanchun Hou and
Mr. Qiang Li, Trunkbow
International Merger Sub
Trunkbow
International Holdings
$48 Mobile application enabler offering mobile payment and application platforms
(sold by Verifone). Beijing, China-based.
8
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
M&A TRANSACTIONS: $25MM - $1B (Continued)
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
36 12/12/2013 LifeLock Lemon $43 Online receipt organization and spending management tools. Palo Alto,
California-based.
!
37 11/12/2013 Perfect World Wuhu Huitian
Shengshi Network
Technology Co.
$42 Gaming portal under the name of TGBus.com. Wuhu, China-based.
38 10/10/2013 People.cn Kanshu.com $41 Online book reading platform. China-based. !
39 10/04/2013 Apple Cue $40 Data organizing software as mobile applications that help a client find emails,
files, contacts and streams. San Francisco, California-based.
40 11/05/2013 Centro SiteScout $40 Self-serve advertising platform providing real-time bidding for banner, mobile,
media and retargeting campaigns. Toronto, Canada-based.
41 10/01/2013 iomart Group Backup Technology $37 Offsite public and onsite private cloud services, file/email archiving and disaster
recovery services. Leeds, United Kingdom-based.
42 11/25/2013 Linkem E-via S.p.A., WiMAX
Business Unit
$37 Worldwide interoperability for microwave access (WiMAX) wireless
communications. Milan, Italy-based.
43 10/21/2013 Global Eagle
Entertainment
Travel Entertainment
Group
$36 In-flight, satellite and pre-recorded entertainment services. London, United
Kingdom-based.
44 10/16/2013 Brand Networks Optimal $35 Social media advertising and data platform enabling creation and tracking of
social media campaigns. San Francisco, California-based.
!
45 12/09/2013 The E. W. Scripps
Company
Media Convergence
Group
$35 Multisource video news service that researches blogs, newspapers, television and
the Internet to provide news to users. Columbia, Missouri-based.
46 12/24/2013 The Prepaid Company Retail Mobile Credit
Specialists
$33 Virtual mobile store which allows consumers in developing world to purchase
products/services through their existing credit accounts at retail stores. Sandton,
South Africa-based.
47 12/31/2013 Avigilon Corporation VideoIQ $32 Real-time intelligent video analytics solutions for security and business
intelligence applications. Bedford, Massachusetts-based.
!
9
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
M&A TRANSACTIONS: $25MM - $1B (Continued)
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
48 12/27/2013 Beijing Baidu Netcom
Science
Beijing Huanxiang
Zongheng Chinese
Literature Website
$32 Online literature platform where readers subscribe to works by freelance writers.
China-based.
49 10/14/2013 L&L Broadcasting Border Media Partners $31 Eight radio stations located in San Antonio, Texas.
50 11/20/2013 Changyou.com Beijing Kunlun Tech,
Raidcall Business
$30 Social communication software which allows real time online group activities
through voice, text and video. Beijing, China-based.
51 12/16/2013 AutoNavi Holdings Alohar Mobile $30 Mobile analytics platform delivering real-time device data from location, motion,
WiFi and timing data. Palo Alto, California-based.
52 12/16/2013 Viggle wetpaint.com $30 Facebook-centric publisher that specializes in writing about TV shows. Seattle,
Washington-based.
!
53 11/29/2013 UXC Limited Keystone Management
Solutions
$26 Australia’s largest reseller and services provider for ServiceNow, a global cloud-
based solution that automates enterprise IT operations. Brisbane, Australia-
based.
10
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
M&A TRANSACTIONS: $25MM - $1B (Continued)
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
SERVICE PROVIDER TRANSACTIONS
1 11/10/2013 Deutsche Telekom GTS Central European
Holding
$729 Fixed voice, data, Internet protocol and broadband communication services.
Amsterdam, Netherlands-based.
!
2 12/09/2013 TPG Telecom Telecom New Zealand
Australia
$409 Internet, data and cloud services for businesses and wholesale customers.
Sydney, Australia-based.
3 11/11/2013 Mitel Networks Aastra Technologies $362 Internet phone and video-conferencing services provider. Concord, Canada-
based.
4 10/23/2013 Pace Aurora Networks $310 Develops and supplies optical transport and access network gear for cable
operators and other service providers. Santa Clara, California-based.
!
5 11/13/2013 Hon Hai Precision
Industry
Ubee Interactive $203 Broadband access customer premises equipment (CPE) and related software for
data, voice, video and wireless networks. Jhubei City, Taiwan-based.
6 10/21/2013 Tower Three Partners NTS $159 High speed broadband services, including Internet access, digital cable TV
programming and local and long distance telephone service. Lubbock, Texas-
based.
7 12/20/2013 Com Hem AB Phonera Företag AB $48 Corporate telephony and Internet service provider. Malmo, Sweden-based.
8 12/16/2013 China Telecom Global China Telecom
(Europe) Limited
$43 Voice, IP, data and managed services. London, United Kingdom-based.
11
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
M&A TRANSACTIONS: $25MM - $1B (Continued)
#
ANNOUNCED
DATE BUYER TARGET
TRANSACTION
VALUE ($MM) TARGET DESCRIPTION
AP INSIGHT
SM
M&A ALERT
VC-
BACKED
1 10/02/2013 Oi (formerly Telemar) Portugal Telecom $19,306 Fixed, mobile and multimedia communication services. Lisbon, Portugal-based.
2 11/05/2013 PPF Group Telefónica Czech
Republic
$3,481 Fixed and mobile, voice and data, mobile telephony, Internet and WiFi Internet
access. Prague, Czech Republic-based.
3 12/20/2013 HKT Trust and HKT
Limited
Hong Kong CSL $2,425 Mobile network operator providing customer-centric services including
reservations, recommendations and mobile marketing. Hong Kong-based.
4 11/21/2013 Hellman & Friedman Scout24 $2,021 Germany’s largest real-estate and dating portal with over 14 million monthly
users. Also provides online classifieds for cars, jobs and travel. Munich, Germany-
based.
5 11/25/2013 Baring Private Equity
Asia
Giant Interactive $1,602 Develops multiplayer online role playing games. Shanghai, China-based.
6 10/15/2013 SoftBank and GungHo
Online Entertainment
Supercell Oy $1,530 Online games for iPads, iPhones and tablets, including Clash of Clans and Hay
Day. San Francisco, California-based.
!
7 12/20/2013 Oracle Corporation Responsys $1,500 Digital marketing provider encompassing e-mail, mobile, social, display and the
web. San Bruno, California-based.
8 11/26/2013 Altice VII Orange Dominicana $1,435 Digital wireless carrier providing GSM, prepaid, data and multimedia services.
Santo Domingo, Dominican Republic-based.
9 10/21/2013 Marlin Equity Partners Tellabs $1,116 Telecom and optical networking equipment maker. Provides mobile backhaul and
optical LAN networking solutions. Naperville, Illinois-based.
10 10/18/2013 SoftBank Brightstar $1,105 Distributes wireless devices for mobile device manufacturers, wireless operators
and retailers. Miami, Florida-based.
11 09/30/2013 Vista Equity Partners The Active Network $1,050 Cloud technology platform for managing and operating activities, events and
organizations. Operates online destinations Active.com and ActiveNetwork.com.
San Diego, California-based.
A number of important transactions were announced in the fourth quarter of 2013 with consideration
in excess of $1b or with unannounced transaction values.
12
Note: Transaction values within a range are presented as a mid-point value.
Source: Architect Partners, Capital IQ, company filings and public information
M&A TRANSACTIONS: OTHER NOTABLE
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