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M&A SNAPSHOT
Q2 - 2015
The uptrend continues in Q2
2015 and China gets even
hotter.
Core M&A activity was up by
36% year over year with nonU.S.-based activity leading the
growth. As we observed last
quarter, China M&A has taken o
in the past 18 months in terms of
both number of transactions and
size. Almost entirely comprised
of Chinese acquirers acquiring
Chinese-based targets, 22% of
the core M&A transactions this
quarter are Chinese deals. While
U.S. activity is strong, activity
levels are essentially flat over the
past four quarters.
Q2
Q3
2015
2014
2013
Q4
Q1
Q2
Q3
Q4
Q1
Q2
327
406
416
494
464
509
785
466
387
33
41
61
70
74
45
63
76
86
$8.1
$9.6
$9.4
$12.3
$20.0
$13.8
$13.5
3%
32%
5%
42%
2%
17%
3%
18%
4%
29%
4%
27%
4%
20%
4%
26%
3%
16%
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 businessbuilding endeavors
c) Premium value transactions are defined as greater than 5 times invested equity capital or 5 times estimated last twelve months revenue (LTM)
M&A BY SECTOR
Q2 - 2015
Service
App
Provider Development
Commerce
Consumer
7% 3%
Application
12%
9%
Media
Analytics
2%
Application
1%
Security
6%
Network
Infrastructure
7%
Enterprise
29% Application
6%
Hardware
17%
Number of
Deals by Sector
Digital
Marketing
SECTORS
Consumer Application
Enterprise Application
Analytics Application
Network Infrastructure
App Development
Security
$2,183
$5,883
$600 $1,062
$153 $1,000
$2,376
$2,675
Source: Architect Partners LLC, Capital IQ, company filings and public information
Commerce
Digital Marketing
Media
Hardware
Service Provider
3
Target | Acquirer
x LTM Revenue
Treatwell | Recruit
Momo | Huatai Ruilian
Menulog | JUST EAT
wahanda.com | Recruit
Jiuzhi Tianxia | Hunan TV
Renren | CEO-Led Buyout
lynda.com | LinkedIn
CryptoLogic | NYX Gaming Group
Altera | Intel
Telecity | Equinix
Stucco | Market Tech
Qihoo 360 | CEO-Led Buyout
Cervalis | CyrusOne
Rally Software | CA
TellApart | Twitter
Bronto Software | NetSuite
148x
48x
33x
29x
37x
Target | Acquirer
10
12
14
16
18
20
x Invested Capital
81x
42x
12
Source: Architect Partners LLC, Capital IQ, company filings and public information
16
20
24
28
32
36
40
4
MOST ACTIVE
ACQUIRERS LTM
(In terms of number of acquisitions)
1.
2.
3 / 14 | N/A
3 / 11 | $2.5B
Agawi
Timeful
Pulse.io
6.
3.
6 Wunderkinder GmbH
BlueStripe Software
Datazen Software
7.
2 / 5 | $1.7B
11.
Altera
Recon Instruments
12.
3 / 4 | $450mm
Accelyst Solutions
Letsgomo Labs
MartMobi
3 / 8 | $533mm
None
TellApart
tenXer
Whetlab
9.
ConteXtream
3 / 6 | N/A
Blue Box Group
Explorys
Phytel
10.
2 / 5 | N/A
1 / 5 | $1.4B
0 / 5 | $367mm
Coherent Navigation
Metaio
Voyagin
None
13.
1 / 4 | $2.6B
5.
0 / 10 | $648mm
8.
2 / 5 | $18.9B
lynda.com
Refresh
4.
14.
15.
1 / 4 | N/A
0 / 4 | N/A
0 / 4 | $500mm
SoThree
None
None
Number of new deals in Q1 / total deals last 4 quarters | total spend last 4 quarters (a)
a) A number of transactions do not have disclosed acquisition price, so aggregate value of deals over the last twelve months is likely understated.
Source: Architect Partners LLC, Capital IQ, company filings and public information
CORE TRANSACTIONS
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
8x8 (Nasdaq:EGHT)
DXI
25
Accton Technology
(TSEC:2345)
SMC Networks
26
SimonsVoss Technologies
GmbH
235
248
Yes
Amazon (Nasdaq:AMZN)
Clusterk
50
Yes
Amdocs (Nasdaq:DOX)
Comverse, Business-Support
System
272
Apax Partners
Zap Group
37
ASSA ABLOY AB
(OM:ASSA B)
Flexim Security Oy
39
Automattic
Bubblestorm Management
30
AVG Technologies
(NYSE:AVG)
HideMyAss.com
60
BlackBerry (TSX:BB)
WatchDox
70
Yes
BlueFocus
Communication (SZSE:
300058)
109
Yes
Allegion Luxembourg
Holding and Financing
S. r.l.
Allwin
Telecommunication
(SZSE:002231)
TARGET DESCRIPTION
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
AP M&A
ALERT
VC-BACKED
Yes
Yes
CORE TRANSACTIONS
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
Brand Networks
SHIFT
50
CA (Nasdaq:CA)
534
SAS Smartadserver
40
CEO-Led Buyout
Kongzhong (Nasdaq:KZ)
353
CEO-Led Buyout
AirMedia Group
(Nasdaq:AMCN)
247
CEO-Led Buyout
iDreamSky (Nasdaq:DSKY)
492
CEO-Led Buyout
China Information
Technology (Nasdaq:CNIT)
157
CEO-Led Buyout
Renren (NYSE:RENN)
990
CEO-Led Buyout
Vimicro (NasdaqGM:VIMC)
342
Charter Communications
(Nasdaq:CHTR)
ActiveVideo Networks
135
Cisco (Nasdaq:CSCO)
OpenDNS
635
Ciena (NYSE:CIEN)
Cyan (NYSE:CYNI)
275
blackcircles.com
76
Online car tire retailer that oers automobile tires for consumers in the
United Kingdom. Based in Edinburgh, United Kingdom.
TARGET DESCRIPTION
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
AP M&A
ALERT
VC-BACKED
Yes
CORE TRANSACTIONS
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
Comverse
(NasdaqGM:CNSI)
Acision Global
210
Continental
Aktiengesellschaft
(DB:CON)
668
CoStar Realty
Information
Network Communications
170
30
ctrip.com
eLong (Nasdaq:LONG)
682
Cypress Semiconductor
(Nasdaq:CY)
634
CyrusOne
Cervalis
400
Brivo Systems
50
350
Eckoh (AIM:ECK)
Netcall (AIM:NET)
138
Envestnet (NYSE:ENV)
Oltis Software
32
Epiq Systems
134
TARGET DESCRIPTION
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
AP M&A
ALERT
VC-BACKED
Yes
CORE TRANSACTIONS
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
Fortinet (Nasdaq:FTNT)
Meru Networks
(NasdaqGM:MERU)
42
Francisco Partners
Management
ClickSoftware
(Nasdaq:CKSW)
421
Francisco Partners
Management
Procera Networks
238
GigOptix (AMEX:GIG)
GSI Technology
(Nasdaq:GSIT)
152
Gosuncn Technology
Group
Guangzhou Goldmessage
Technology
40
Grupo Ezentis SA
(CATS:EZE)
62
Yutang Lianchuang
209
Hotspring Ventures
Treatwell Holding BV
38
52
Infinera (Nasdaq:INFN)
Transmode AB (OM:TRMO)
346
Infosys (BSE:500209)
Skava
120
Jasper Infotech
Accelyst Solutions
450
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Yes
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
Yes
Yes
CORE TRANSACTIONS
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
Menulog Group
687
Keysight Technologies
Netherlands B.V.
Anite (LSE:AIE)
584
KION GROUP AG
(DB:KGX)
81
Yes
Knowles (NYSE:KN)
Audience (Nasdaq:ADNC)
131
Yes
M2 Group (ASX:MTU)
186
Stucco Media
43
MasterCard (NYSE:MA)
Applied Predictive
Technologies
600
Millicom International
Cellular SA
(OTCPK:MIIC.F)
Zanzibar Telecom
74
NameFind
28
Telekomunikacja Kolejowa
Splka z o.o.
62
NetSuite (NYSE:N)
Bronto Software
200
Novatel Wireless
(Nasdaq:MIFI)
DigiCore (JSE:DGC)
93
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Yes
Yes
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
10
CORE TRANSACTIONS
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
TARGET DESCRIPTION
CryptoLogic
119
Orient Securities
703
Orient Securities
Taomee (NYSE:TAOM)
99
Perfect Commerce
Hubwoo (ENXTPA:HBW)
29
Borderfree (Nasdaq:BRDR)
465
Qiwi (Nasdaq:QIWI)
SAER
167
Quality Technology
Services
Carpathia Hosting
326
Yes
Hotspring Ventures
170
Yes
Imagitas
310
Yes
Redknee Solutions
(TSX:RKN)
43
Rogers Communications
(TSX:RCI.B)
355
Yes
Singapore
Telecommunications
(SGX:Z74)
TrustWave Holdings
810
Yes
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
AP M&A
ALERT
VC-BACKED
11
CORE TRANSACTIONS
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
SolarWinds (NYSE:SWI)
Papertrail
41
Talkweb Information
System (SZSE:002261)
Shandong Changzheng
Education Technology
117
78
Yes
Twitter (NYSE:TWTR)
TellApart
533
Yes
Valid USA
41
350
50
Wowo
(NasdaqGM:WOWO)
Join Me Group
524
Yes
ComFree/DuProprio Network
38
Yes
Guangzhou Zhangtao
Network Technology
87
Bus Online
272
Ulysses
292
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.
Yes
12
(CONTINUED)
Q2 - 2015
BUYER
TARGET
TRANSACTION
VALUE ($MM)
Adobe (Nasdaq:ADBE)
Tumri
Adobe (Nasdaq:ADBE)
Mixamo
Yes
App Annie
Mobidia
Yes
Apple (Nasdaq:APPL)
Metaio
Yes
Avago (Nasdaq:AVGO)
Broadcom (Nasdaq:BRCM)
36,698
CEO-Led Buyout
Momo (Nasdaq:MOMO)
1,863
CEO-Led Buyout
9,913
Charter Communications
(Nasdaq:CHTR)
78,428
Cisco (Nasdaq:CSCO)
Tropo
Cox Automotive
Dealertrack (Nasdaq:TRAK)
4,547
EMC Corporation
(NYSE:EMC)
Virtustream
1,200
Equinix (Nasdaq:EQIX)
4,064
Google (Nasdaq:GOOG)
Timeful
Yes
Google (Nasdaq:GOOG)
Agawi
Yes
Google (Nasdaq:GOOG)
Pulse.io
Yes
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration in excess of $1 billion or undisclosed amount.
Yes
13
BUYER
TARGET
TRANSACTION
VALUE ($MM)
Hewlett-Packard
(NYSE:HP)
ConteXtream
OmniVision (Nasdaq:OVTI)
1,900
Recon Instruments
Altera (Nasdaq:ALTR)
18,220
Iron Mountain
(NYSE:IRM)
Recall (ASE:REC)
2,594
LinkedIn (NYSE:LNKD)
Refresh
Yes
LinkedIn (NYSE:LNKD)
lynda.com
1,500
Yes
Nokia (NYSE:NOK)
Alcatel-Lucent (NYSE:ALU)
22,390
Informatica (Nasdaq:INFA)
5,321
SalesForce (NYSE:CRM)
Toopher
Rakuten (TYO:4755)
Voyagin
Telenet (EBR:TNET)
BASE Company nv
1,425
Uber
Verizon (NYSE:VZ)
AOL (NYSE:AOL)
4,759
TARGET DESCRIPTION
AP M&A
ALERT
VC-BACKED
Yes
Yes
Yes
Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration in excess of $1 billion or undisclosed amount.
14