Internet DealBook

Annual Global M&A and

Investment Activity Review
1 January - 31 December 2017

Internet DealBook is published by Right Click Capital

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All amounts in USD unless stated otherwise.
Informational Sources
All information contained in this presentation was sourced using Internet.
DealBook’s database. All additional information used to create the IDB
indices, was sourced from InternetWorldStats.com on January 2018.
Internet DealBook collects and compiles all their data from publicly
available sources. Average deal values are calculated using only deals
where the value has been disclosed. Visit Internet Dealbook for more
information on the methodology used for tracking and collating deals.
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Overview – Sectors and Regions

Sectors Regions

§  Ecommerce §  Asia & Pacific

§  Games
§  Hardware & Infrastructure
§  Marketing
§  Media
§  Mobile & Apps
§  Software & Services
§  Transactions
§  Europe
§  Middle East
§  North America
§  Rest of World
§  South America
Global Summary
9,082 deals tracked from public sources in
2017, a 70% increase from 2016
$232bn of investments and acquisitions
recorded in 2017, a 11% increase from 2016.
This marks a record year in total deal value.
While total deal value recorded decreased in
the European and North American regions,
Asia/Pacific saw total deal value increase from
$25bn to $98bn driven by multibillion dollar
investment rounds
$6.5m recorded in median acquisition
deal value in 2017. This is a decrease from
$7.0m in 2016. However, average deal value is
down to $190m in 2017 from almost $1bn in
2016, where large acquisitions took place in the
Software & Services, Media and Hardware &
Infrastructure sectors
$6.3m recorded in median investment
deal value in 2017. This is a decrease from
$6.5m in 2016. Average deal value reached
$33.1m in 2017, an increase from $22.0m
recorded in 2016
4,020 transactions recorded in the
Software & Services sector, making this the
most active out of all categories
43 companies received investment by
Softbank, one of the most active venture
capital investors. The majority of these
investments went into US based businesses.
Tencent followed closely, making investments
into 40 technology based businesses. However,
most of the investments tracked went into
backing technology Chinese companies
 Geographic Overview
Deal value by region ($bn) ADV
160.00 2016 - 66.79m
2017 - 36.83m

140.00 134.65
ADV
2016 – 44.10m
120.00 2017 – 91.75m

95.49 98.17
100.00
Billions

80.00 ADV
2016 – 61.98m
2017 – 23.11m
60.00
46.05
ADV ADV ADV
40.00 30.27
2016 - 41.79m 2016 - 27.41m 2016 - 18.58m 24.52
2017 - 24.39m 2017 - 64.98m 2017 - 27.43m
20.00
0.77 3.77 2.10 3.98
0.67 0.49
0.00
South America Rest of World Middle East Europe North America Asia/Pac

2016 2017

§  Asia/Pac – total deal value and average deal value increased due to large investment rounds fuelled by Asia’s technology giants
SoftBank, Tencent and Alibaba, who invested heavily into Chinese, Indonesian and Indian companies in 2017

§  North America and Europe – total deal value and average deal value decreased due to a lower number of billion dollar
acquisition deals being made. For example, in 2016 Microsoft purchased LinkedIn for $26bn and SoftBank bought UK-based
chipmaker ARM for $31bn

Note: ADV = average deal value

Geographic Overview
Number and spread of deals by region

2,357

26.0%

51.7% Asia/Pac
Europe 20.5%
and
North Middle East
4,684 America 1,858

Africa

South
44 America

1.4%
<1%
139

§  The number of deals tracked reached its highest peak ever, amounting to 9,082 deals, up from 5,352 deals in 2016
§  Almost 60% of deals recorded were investments into technology businesses, with the remaining 40% being acquisitions. This
compares with approximately 75% of 2016 deals being investments and 25% being acquisitions. This trend will likely continue
in 2018 as more technology businesses mature
 Top 10 Countries
Country Deal value ($bn) ADV ($m) Deal number

USA 91.88 20.98 4,380

China 70.19 183.28 383

UK 13.19 15.59 846

India 12.58 22.91 549

Singapore 5.16 43.34 119

Germany 4.61 15.57 296

Netherlands 3.92 33.50 117

Canada 3.61 11.89 304

Israel 3.05 19.52 156

Indonesia 2.45 43.73 56

Note: ADV = average deal value

 Investments – Geographic Overview
ADV
Investment value by region ($bn) 2016 - 42.83m
2017 - 91.85m
100.00
91.02
90.00

80.00
ADV
70.00
2016 - 20.79m
2017 - 20.99m
60.00
50.79
Billions

50.00
40.32
40.00 ADV
2016 - 10.38m
30.00 2017 - 12.24m
22.87
ADV ADV ADV
20.00 2016 - 30.01m 2016 - 17.52m 2016 - 15.11m 14.69
2017 - 6.05m 2017 - 25.55m 2017 - 14.67m 7.41
10.00
0.75 0.31 0.23 0.49 1.65 1.94
0.00
Rest of World South America Middle East Europe North America Asia/Pac
2016 2017

§  Asia/Pac – total investment value in this region for the first time outpaced North America. The increase in total deal value and
average deal value was driven by $500m+ investments being made into predominantly Chinese companies in the Transactions
sector. For example, Uber-rival Didi Chuxing raised an astonishing $9.5bn in total in 2017 and local services giant Meituan-
Dianping raised $4bn led by Tencent and Priceline

§  North America and Europe – this region also experienced an uptick in total deal value and average deal value much thanks to
late stage deal values remaining at a historic high. The inflow of private equity and growth equity capital, increased the
competitiveness in the market, driving deal values up
Note: ADV = average deal value
Investments – Geographic Overview
Number and spread of investments by region

1,431

24.7%

48.8% Europe Asia/Pac

24.7%
and
North Middle East
2,823 America 1,431

Africa

South
26 America

1.4%
<1%
79

§  The number of investment deals tracked reached its highest peak ever, amounting to 5,790 deals recorded, up from 4,084 deals
in 2016

§  By no surprise, North America leads the world in number of deals recorded with almost 50% of total investments tracked going
into US companies. This is driven by its strong venture capital and private equity/growth equity market. This trend is spread in
Asia/Pac and we can expect the number of investments to continue rise in this region in 2018
 Acquisitions – Geographic Overview
ADV
Acquisition value by region ($bn) 2016 - 1225.08m
2017 - 258.4m
100.00 94.33

90.00

80.00

70.00

60.00 ADV
2016 - 1332.51m
Billions

50.00 2017 - 141.66m 44.70

38.64
40.00

30.00 ADV
ADV ADV 2016 - 74.76m
20.00 ADV 2016 - 5.7m 2017 - 90.48m 15.58
2016 - 113m
2016 - 146.96m 2017 - 494.3m
2017 - 157.02m 7.15
10.00 2017 - 2.50m
2.04 3.46 1.64
0.44 0.0025 0.45 0.017
0.00
South America Middle East Rest of World Asia/Pac Europe North America
2016 2017

§  North America and Europe – total deal value and average deal value decreased due to a lower number of billion dollar
acquisition deals being made. For example, in 2016 SoftBank bought UK-based chipmaker ARM for $31bn and Microsoft’s
purchase of LinkedIn for $26bn

§  Asia/Pac – the increase in total deal value and average deal value was due to more $100m+ acquisitions being made in 2017,
with Chinese technology companies leading the way in total acquisition value

Note: ADV = average deal value

Acquisitions – Geographic Overview
Number and spread of acquisitions by region

926

28.1%

Asia/Pac
56.5% Europe 13.0%
and
North Middle East
1,861 America 427

Africa

South
18 America

1.8%
<1%
60

§  North America – total number of acquisitions increased from 765 in 2016 to 1,861 in 2017. Most consolidation took place in the
Software and Services sector, which accounted for 54% of total number of deals being made

§  Asia/Pac – the number of exits significantly increased in 2017, from 158 transactions in 2016 to 427. Here the Software &
Services sector accounted for 37% of total number of deals being made, giving way for more deals into technology companies
in the Transaction sector
 Sector Overview
Deal value by sector ($bn) ADV
ADV 2016 - 31.33m
2016 - 48.87m 2017 - 46.98m
2017 - 33.56m
80.00 75.40
70.85
70.00 67.00

ADV
60.00 ADV 2016 - 205.59m
2016 - 197.16m 2017 - 92.97m
2017 - 86.98m
50.00
43.79
Billions

38.25 39.14
40.00
ADV
2016 - 51.3m 29.23
30.00 ADV ADV ADV
2016 - 47.15m 2016 - 33.39m 2016 - 30.59m 2017 - 62.94m
2017 - 17.68m 2017 - 50.99m 2017 - 22.77m
20.00 14.54 15.74
9.57 9.88 9.13
10.00 4.74 5.66 6.10
1.90
0.00
Marketing Games Mobile & Apps Ecommerce Media Hardware & Software & Transactions
Infrastructure Services
2016 2017

§  Transactions – experienced a large uptick in total deal value due to multibillion dollar investment rounds into companies out of
China, Indonesia and US. SoftBank and Tencent led most of these large investment rounds

§  Media – even though some $1bn+ deals where made into this space during 2017, total deal value still plunged as Microsoft’s
acquisition of LinkedIn contributed significantly to 2016’s figures

Note: ADV = average deal value

Sector Overview
Number of deals by sector

4% 2%
4%
5% Software & Services = 4020
Transactions = 2425
7%
Marketing = 641
44% Hardware & Infrastructure = 641
7% Mobile & Apps = 447
Media = 360
Ecommerce = 360
Games = 188

27%

§  Similar to previous years, the Software & Services sector led the way in total number of deals recorded
§  The Marketing and Hardware & Infrastructure sectors experienced the largest increase in total number of deals tracked. In the
Hardware & Infrastructure sector this number increased from 292 deals to 641, an astonishing 120% increase. In the Marketing
sector this number increased from 337 deals to 641, a 90% increase
 Investments – Sector Overview
Investment value by sector ($bn) ADV
2016 - 27.31m
2017 - 41.26m
70.00
63.21

60.00

ADV
50.00 ADV
2016 - 16.93m
2016 - 26.8m
2017 - 18.09m
2017 - 86.86m
40.00
34.97
Billions

33.53

30.00
24.74
ADV ADV 22.38
ADV
2016 - 33.3m 2016 - 19.21m
20.00 ADV ADV 2016 - 24.41m
2017 - 40.01m 2017 - 56.86m
2016 - 33.46m 2016 - 10.97m 2017 - 19.45m
2017 - 19.84m 2017 - 12.06m 8.52 9.38
10.00 7.74
4.94 5.59 5.49
2.01 2.89 3.40
1.87 1.79
0.00
Games Marketing Mobile & Apps Ecommerce Media Hardware & Software & Transactions
2016 2017 Infrastructure Services

§  Media – investments into Media companies rose in 2017, with $100m+ dollar cheques being written into Chinese and US
companies. For example, Chinese news app Toutiao nabbed $1bn at a $11bn valuation and Reddit raised $200m, now valued at
$1.8bn

§  Hardware & Infrastructure – competition in electric vehicles, robotics and chipmakers helped drive investment values in this
sector with the average deal value increasing by 224%

Note: ADV = average deal value

Investments – Sector Overview
Number of investments by sector

4% 2%
4%
5% Software & Services = 2310
Transactions = 1836
5%
40% Hardware & Infrastructure = 455
Mobile & Apps = 322
8%
Marketing = 280
Ecommerce = 265
Media = 209
Games = 113

32%

§  With a 86% increase, the Hardware & Infrastructure sector experienced the largest increase in number of investments between
2016 and 2017. The Gaming and Transaction sectors took home second and third spot with a 64% and 63% lift in deal numbers
respectively

§  However, deal numbers recorded in the Mobile & Apps and Media sector fell in 2017 by -14% and -3% respectively
Investments – Top 10 Deals
Company Sector Raised ($bn)

Hardware & Infrastructure 22.00

Transactions 5.50

Transactions 4.00

Transactions 4.00

Transactions 2.50

Transactions 2.50

Software & Services 2.00

Transactions 2.00

Media 1.53

Transactions 1.40
 Acquisitions – Sector Overview
Acquisition value by sector ($bn) ADV
2016 - 910.67m
ADV 2017 - 201.56m
50.00
2016 - 4786.88m 44.62
ADV
45.00 2017 - 160.35m
2016 - 2049.96m
38.30 2017 - 397.53m
40.00
34.85 35.88
35.00

30.00
Billions

25.00 ADV
2016 - 166.22m
20.00 ADV
ADV 2017 - 166.98m
2016 - 378.23m
15.00 ADV 2016 - 353.78m 12.19
ADV 2017 - 65.89m
2016 – 30.00m 2017 - 334.27m
2016 - 356.92m
10.00 7.56 2017 – 184.50m
2017 - 82.94m 5.61 6.02 6.36
3.87 3.54 4.49
5.00 2.14 1.84
1.16
0.03
0.00
Mobile & Apps Marketing Games Hardware & Ecommerce Media Transactions Software &
Infrastructure Services
2016 2017

§  As total acquisition value and average deal value fell in North America and Europe in 2017, the sectors falling the most were
Hardware & Infrastructure, Media, Marketing, and Software & Services

§  Even though the number of acquisitions recorded increased, acquisition deal values plunged by -46% and average deal value
fell by -81%, which suggests that more consolidation is occurring in the SME market rather than in the enterprise market

Note: ADV = average deal value

Acquisitions – Sector Overview
Number of acquisitions by sector

3% 2%
4%
4% Software & Services = 1710
6% Transactions = 589
Marketing = 361
Hardware & Infrastructure = 186
11%
52% Media = 151
Mobile & Apps = 125
Ecommerce = 95
Games = 75
18%

§  The deal count for acquisitions increased in all sectors between 2016 and 2017
§  Similarly to the deal split for private placements, Software & Services leads the way with the majority of acquisition deals being
recorded in this sector.

§  Marketing – there was more activity in the M&A market rather than the investment market. In 2017, 280 marketing companies
received some form of capital whereas 361 businesses in the Marketing sector were acquired
Acquisitions – Top 10 Deals

Company Acquirer Sector Value ($bn)

Software & Services 3.70

Ecommerce 3.35

Media 3.30

Software & Services 3.10

Software & Services 2.00

Transactions 1.76

Software & Services 1.58

Media 1.40

Software & Services 1.35

Software & Services 1.30

IDB Population Index
Total deal value/population ($m)
1,000.00
891.58
900.00

800.00

700.00

600.00
Millions

500.00

400.00 365.88

266.35 281.42
300.00
230.12
201.36
200.00 163.19
98.80 99.66 101.02
100.00

0.00
Ireland Luxembourg Finland Sweden UK Netherlands Hong Kong US Israel Singapore

§  Singapore – total deal value per capita increased significantly between 2016 and 2017, from $541m to 892m, which takes
Singapore from the second spot in 2016 to the top in 2017. The largest deal in Singapore was Uber-rival Grab raising $2.5bn
from SoftBank and Didi Chuxing

§  Israel – saw its world ranking climbed from fourth to second rank in 2017. Some multimillion dollar acquisitions contributed to
this. For example, Aristocrat bought gaming company Platinum for $635m and the virtual cloud service provider Luminati got
acquired up by English private equity firm EMK Capital for $200m
 Australia Summary
219 deals tracked from public sources in
2017, a 83% increase from 2016
$2.5bn of investments and acquisitions
recorded in 2017, a 330% increase from 2016.
This marks a record year in total deal value in
Australia. California-based Equinix’s acquisition
of Metronode, which manages data centers, for
$1bn contributed to this large uptick in total
deal value
$1.6bn recorded in total acquisition deal
value in 2017. This is an increase from $113m
recorded in 2016. Average deal value for
acquisitions also increased, from $13m in 2016
to $17m in 2017
Note: all amounts in AUD
$860m recorded in total investment deal
value in 2017. This is a increase from $465m in
2016. Average deal value reached $7.0m in
2017, an increase from $6.7m in 2016
94 transactions recorded in the software and
services sector, making this the highest activity
out of all categories
9 acquisitions occurred in the marketing
sector, in which some transactions saw leading
global marketing firms snapping up Australian
agencies such Publicis Groupe acquiring The
Herd Agency, Dentsu Aegis Network buying
Accordant and NEXTGEN taking over digital
agency Bang
 Sector Overview
Number of deals by sector

1%
3%2%
6%
Software & Services = 94
7% Transactions = 65
Hardware & Infrastructure = 17
43%
8% Marketing = 16
Mobile & Apps = 13
Ecommerce = 7
Media = 5
Games = 2
30%

§  Australia experienced tremendous growth in deals in 2017, with an 83% increase since 2016

§  Hardware & Infrastructure saw the largest increase in deals, with a 325% increase, followed by Software & Services with a 213%
increase

§  The only sector to see a decline in deals was Media, with a 62% reduction in number

Note: all amounts in AUD

 Sector Overview
Deal value by sector ($m) ADV
2016 - 2.91m
1,400.00 2017 - 69.49m

1181.40
1,200.00

1,000.00

ADV ADV
800.00 2016 - 5.08m 2016 – 7.04m
Millions

2017 - 7.01m 2017 – 5.29m

600.00 497.22
ADV ADV 455.76
ADV 2016 - 19.76m
2016 - 11.42m ADV 2016 - 22.04m
400.00 ADV 2017 - 9.82m
2017 - 0.14m 2016 - 8.41m 2017 - 18.57m
2016 - 1.38m
2017 - 4.06m
2017 - 1.75m 177.74
200.00 130.02 157.20 133.72
102.76 88.17
42.06 52.75 19.76 11.65
0.69 1.38 3.50
0.00
Media Games Mobile & Apps Ecommerce Marketing Transactions Software & Hardware &
Services Infrastructure
2016 2017

§  Software & Services – the acquisition of GroundProbe, a software and hardware provider to the mining industry in Australia
and internationally, by Orica for $205m drove the large increase in total deal value and average deal value. Median deal value
however decreased to $4m, from $5m in 2016

§  Transactions – a significant increase in both investments and acquisitions in this sector helped fuel the growth in total deal
value and average deal value. Contributing to this growth were companies in the fintech space. For example, MYOB acquired
Paycorp for $37m and online lender Prospa raised $20m from Silicon Valley’s Partners for Growth

Note: ADV = average deal value, all amounts in AUD

 Investments – Sector Overview
Number of investments by sector

1% 1%

3%
6%
Transactions = 53
8%
Software & Services = 37
Hardware & Infrastructure = 10
43%
8% Mobile & Apps = 10
Marketing = 7
Ecommerce = 4
Media = 1
Games = 1
30%

§  Australia saw a significant increase in number of investments between 2017 to 2016, growing by 58%

§  The Marketing sector was the highest performer, achieving a 600% increase, while Hardware & Infrastructure increased by
233% year on year

§  On the other end of the spectrum, investments in Media and Ecommerce both fell 86% and 20% respectively

Note: all amounts in AUD

 Investments – Sector Overview
ADV
Investment value by sector ($m) 2016 - 5.36m
2017 - 7.87m
450.00 416.97
400.00

350.00

300.00 ADV
2016 - 5.55m
250.00 2017 - 5.17m
Millions

ADV
200.00 ADV ADV
2016 - 2.55m
2016 - 19.76m
2017 - 16.89m
191.16
171.39
2016 – 22.04m
150.00 ADV 2017 – 5.00m ADV 2017 - 9.44m
2016 - 8.41m 118.20
2016 - 6.48m
ADV 88.17 94.40 88.82
100.00 2017 - 0.69m 2017 - 2.52m
2016 - 1.38m
45.35 2017 - 3.5m 42.06
50.00 25.16 19.76
0.69 1.38 3.50 10.02 7.65
0.00
Media Games Ecommerce Mobile & Apps Hardware & Marketing Software & Transactions
Infrastructure Services
2016 2017

§  Transactions – investments into Australian Transaction companies rose significantly between 2016 and 2017. Taking on the
largest investment round were online property exchange platform PEXA who received a capital injection of $64.7m from
returning investor Link Administration

§  Hardware & Infrastructure – this sector also saw a lift in deal values in 2017. Contributing to this increase was healthcare
equipment manufacturer Saluda Medical securing $53m in Series D financing and electronic vehicle charging company
Tritium raising $10m

Note: ADV = average deal value, all amounts in AUD

 Investments – Top 10 deals
Company Sector Raised ($m)

Transactions 64.70

Hardware & Infrastructure 53.00

Marketing 40.90

Marketing 34.47

Software & Services 33.20

Transactions 33.00

Transactions 32.00

Transactions 26.70

Marketing 26.48

Software & Services 26.23

Note: all amounts in AUD

 Acquisitions – Sector Overview
Number of acquisitions by sector

1%
3% 3%
4%
Software & Services = 57
7% Transactions = 12
Marketing = 9
9% Hardware & Infrastructure = 7
Media = 4
60% Mobile & Apps = 3
Ecommerce = 3
13%
Games = 1

§  Total number of acquisitions in Australia increased by a stunning 129% from 2016 to 2017, from 42 transactions tracked to 96
transactions

§  The Hardware & Infrastructure sector experienced the largest increase in acquisitions, rising by 600%, followed by Software &
Services with a 307% increase

§  The only sector to see a decline in acquisitions was Media, falling 33% year on year

Note: all amounts in AUD

 Acquisitions – Sector Overview
Acquisition value by sector ($m) ADV
2016 - 4.00m
2017 - 155.20m
1,200.00
1087.00

1,000.00

800.00
Millions

600.00 ADV
2016 – 14.97m
ADV 2017 – 21.9m
400.00
ADV 2016 - 0m 306.06
ADV ADV ADV
ADV 2016 - 0m 2017 - 40m
2016 - 28.7m 2016 - 0m 2016 - 2.12m
200.00 2016 - 0m 2017 - 0m 2017 - 4.33m
2017 - 9.19m 2017 - 3.23m 120.00
2017 - 0m
57.40 38.79 39.00 44.90
27.58 6.35 4.00
0.00 0.00 0.00 0.00 0.00 0.00
0.00
Games Media Mobile & Apps Transactions Marketing Ecommerce Software & Hardware &
Services Infrastructure
2016 2017

§  Software & Services – Orica’s acquisition of GroundProbe for $205m helped boosting the increase in total deal value and
average deal value in 2017. 2017 also experienced an increase in $10m+ deals being made, from three deals completed in
2016 to six deals in 2017

§  We are expecting the number of acquisitions in the Software & Services and Transaction sectors to continue increase in 2018
as companies in these sectors are maturing

Note: ADV = average deal value, all amounts in AUD

 Acquisitions – Top 10 Deals
Company Acquirer Sector Value ($m)

Hardware & Infrastructure 1,035.00

Software & Services 205.00

Ecommerce 120.00

Hardware & Infrastructure 52.00

Marketing 39.00

Transactions 37.01

Mobile & Apps 26.90

Software & Services 20.00

Software & Services 16.67

Software & Services 15.44

Note: all amounts in AUD

Southeast Asia Summary
266 deals tracked from public sources in
2017, a 58% increase from 2016
$8.6bn of investments and acquisitions
recorded in 2017, a 107% increase from 2016.
While total acquisition value year on year
remained fairly flat, there was a significant
increase in total investment value driven by
large investments from Asia technology giants
such as SoftBank, Tencent and Alibaba
$8.1bn recorded in total investment deal
value in 2017. This is an increase from $3.1bn
recorded in 2016. Average deal value also rose
for investments to $41m in 2017, an increase
from $34m in 2016
$436m recorded in total acquisition deal
value in 2017. This is a decrease from $1bn in
2016. Average deal value reached $6.9m in
2017, down from $143m in 2016
131 deals recorded in the transaction sector,
making this the highest activity out of all
categories
3 billion dollar deals recorded in 2017, with
Uber-rival Grab taking home the largest
cheque by receiving $2.5bn in capital from
SoftBank and Didi Chuxing
Sector Overview
Number of deals by sector

4% 2%
4%
6% Transactions = 131
Software & Services = 59
6%
Marketing = 19
Ecommerce = 16
7% 49%
Media = 14
Hardware & Infrastructure = 11
Mobile & Apps = 10
Games = 6
22%

§  Southeast Asia experienced significant growth in deals in 2017, with an 58% increase since 2016, from 168 deals recorded to
266 deals

§  Hardware & Infrastructure saw the largest increase in deals, with a 450% increase, followed by the Games sector with a 200%
increase

§  Deals in Ecommerce and Mobile & Apps sectors fell 53% and 38% respectively
 Sector Overview
Deal value by sector ($m) ADV
2016 - 40.98m
7,000.00 2017 - 44.97m

5891.30
6,000.00

5,000.00

4,000.00
Millions

3,000.00 ADV ADV

2016 - 62.49m ADV
2016 - 463.59m
2017 - 5.64m 2016 - 11.64m
2017 - 21.85m ADV
2,000.00 ADV ADV 2017 - 18.01m
ADV 1598.34
2016 - 9.37m 2016 - 13.02m 2016 - 2.4m
2016 - 3.67m 1187.36 2017 - 43.86m 2017 - 91.87m 1062.81
927.18 2017 - 18.77m
2017 - 1.96m
1,000.00 551.20
438.56
240.35 262.80 169.25 197.80
11.00 37.30 90.30 56.20 2.40
0.00
Marketing Ecommerce Hardware & Media Mobile & Apps Games Software & Transactions
Infrastructure Services
2016 2017

§  A record year in total deal value recorded in the Southeast Asian region, with total deal value and average deal value
increasing in all sectors apart from in the Ecommerce and Hardware & Infrastructure sector

§  This region continues to attract big cheques from investors wanting to get a piece in its large and growing consumer, on-
demand market. For example, Indonesia based on-demand services app Go-Jek raised $1.2bn led by Tencent at an
astonishing valuation of $3bn, and one of Indonesia’s largest online marketplaces Tokopedia raised $1.1bn led by Alibaba

Note: ADV = average deal value

Investments – Sector Overview
Number of investments by sector

4% 2% 1%
5%
Transactions = 105
7% Software & Services = 45
Ecommerce = 14
7% Media = 14
52% Marketing = 11
Mobile & Apps = 8
Games = 4
22% Hardware & Infrastructure = 2

§  Southeast Asia saw a significant increase in investments between 2017 and 2016, growing by 45%

§  The marketing sector was the highest performer, achieving a 120%, while Games and Hardware & Infrastructure sectors
increased by 100% respectively

§  On the flip side, investments in Ecommerce and Mobile & Apps sectors both fell 48% and 33% respectively
Investments – Sector Overview
Investment value by sector ($m) ADV
7,000.00 2016 - 42.73m
2017 - 54.43m

6,000.00 5,714.76

5,000.00

4,000.00
Millions

3,000.00 ADV
ADV
2016 - 72.79m
2016 - 11.64m
2,000.00
2017 - 5.31m
ADV ADV ADV 2017 - 22.28m
1580.86
ADV ADV 2016 - 11.19m 2016 – 2.40m
2016 - 9.37m
2016 - 3.67m 2016 - 1.9m 1,164.63 2017 - 54.82m 2017 – 0.40m
2017 - 18.77m 1,002.66
1,000.00 2017 - 3.39m 2017 - 28.23m
438.56 1.20
262.80 134.25 197.80
11.00 37.30 1.90 56.46 74.40 56.20 2.40
0.00
Marketing Hardware & Ecommerce Media Mobile & Apps Games Software & Transactions
Infrastructure Services
2016 2017

§  Software & Services – even though the majority of capital deployed into Southeast Asian technology companies went towards
companies in the Transaction sector, Software & Services companies also received a piece of the pie. Helping boosting this
increase in deal value was data centre Airtrunk, which received $400m lead by Goldman and Sachs and TPG Capital

§  Ecommerce – experienced a sharp fall in 2017 as more investors invest in online retailers operating an online marketplace
model, which means that these companies in most cases hold no to little stock in the warehouse, and instead facilitates the
connection and payment between buyer and seller
Investments – Top 10 Deals
Company Sector Raised ($)

Transactions 2,500.00

Transactions 1,200.00

Transactions 1,100.00

Software & Services 400.00

Mobile & Apps 400.00

Software & Services 360.00

Transactions 350.00

Media 133.00

Media 90.00

Transactions 75.00
Acquisitions – Sector Overview
Number of acquisitions by sector

0%

3% 3%
3%
Transactions = 26
13% Software & Services = 14
Hardware & Infrastructure = 9
41%
Marketing = 8
Mobile & Apps = 2
15% Ecommerce = 2
Games = 2
Media = 0

22%

§  The total number of acquisitions in Southeast Asia increased by 125% from 2016 to 2017

§  The Hardware & Infrastructure sector experienced the largest increase in acquisitions, rising by 800%, followed by Software &
Services with a 600% increase

§  The Media sector saw the largest decline in acquisitions, falling 100% year on year
 Acquisitions – Sector Overview
ADV
Acquisition value by sector ($m) 2016 - 925.28m
2017 - 20.43m
1,000.00
925.28
900.00

800.00

700.00

600.00
Millions

500.00

400.00 ADV
2016 - 8.74m
300.00 ADV 2017 - 6.79m
ADV ADV ADV
ADV ADV 2016 - 0m 176.53 183.88
200.00 2016 - 0m 2016 - 35m 2016 - 7.58m
2016 - 0m 2016 - 0m 2017 - 4.3m
2017 - 0m 2017 - 0m 2017 - 7.95m
2017 - 0m 2017 - 0m 60.15
100.00 35.00 22.73 15.90 17.48
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0.00
Games Media Mobile & Apps Marketing Ecommerce Software & Transactions Hardware &
Services Infrastructure
2016 2017

§  Even though there were a lot of activity in the investment landscape in Southeast Asia, this region experienced very little
activity in the M&A market. As this region is still in growth mode, we predict 2018 to continue in the same pattern as 2017,
with large investment rounds fuelling the deal value growth Southeast Asia

§  Hardware & Infrastructure – the decline in total and average deal value in this sector was caused by AMS’s acquisition of
Heptagon in 2016 for $925m. With headquarters in Singapore, Heptagon designs, manufactures, and markets mirco-optics
systems for smart devices

Note: ADV = average deal value

Acquisitions – Top 10 Deals
Company Acquirer Sector Value ($m)

Hardware & Infrastructure 124.37

Transactions 109.00

Transactions 64.00

Hardware & Infrastructure 29.00

Software & Services 29.00

Hardware & Infrastructure 26.00

Software & Services 19.40

Ecommerce 15.90

Software & Services 11.05

SAIGON STEC Hardware & Infrastructure 3.10

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