M&A Snapshot Q1 2014

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M&A SNAPSHOT
Q1 - 2014
2012 Q1 Q2 Q3 Q4 Q1 Q2 2013 Q3 Q4 2014 Q1

Total M&A Exits (a)

352

400

364

466

387

327

406
Healthy start to 2014, up 32% from Q1 2013

416

494

57

63 44

61

Core M&A Exits (b)

41

34

33

41

45

Consideration Exchanged !
$billions (b)

$11.8

$13.7

$11.6

$9.7

$6.1

$7.0

$.8.1

$9.6

$9.4

Proportion Premium Value (c)

% of Total M&A Exits % of Core M&A Exits

5% 32%

5% 30%

4% 27%

3% 21%

3% 32%

5% 42%

2% 17%

3% 18%

4% 29%

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)

M&A BY SECTOR
Q1 - 2014
Consumer App is a material driver of M&A in terms of number and value of deals, with 9 acquisitions announced in Q1 valued at $3b. Notable transactions include Rakutens $900mm acquisition of Viber and Zyngas $527mm acquisition of Natural Motion.
Commerce

Service Provider

9% 13%

20%

Consumer Application

Media

11% 4% 7% 11%

11%

Number of Deals by Sector

Analytics Application

Security

Core Transactions by Sector

2% 11% Network Infrastructure Digital Hardware Marketing

Enterprise Application

SECTORS Consumer Application Enterprise Application Analytics Application Network Infrastructure App Development Security Commerce Digital Marketing Media Hardware Service Provider
3

$2,990

$1,241

$852

$168

$309

$836

$1,301

$1,407

$46

$264

Total sector value in $mm

Source: Architect Partners LLC, Capital IQ, company lings and public information

PREMIUM VALUE DEALS

Q1 - 2014
Target | Acquirer
Nest Labs | Google Klout | Lithium AirWatch | VMWare Natural Motion | Zynga AutoNavi | Alibaba Apartments.com | CoStar Group BlueKai | Oracle ScoutAnalytics | ServiceSource Coverity | Synopsys 0 3 6 9 12 15 18 21 24 27 30
Indicates the LTM revenue multiple of the acquirer at the time of acquisition

x LTM Revenue
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)

Target | Acquirer
WhatsApp | Facebook Oculus VR | Facebook Payments Processing | Global Payments Knowledge Advisors | Corp. Exec. Board FreeWheel Media | Comcast Tedemis | Criteo Maker Studios | Walt Disney Simple Finance | BBVA Compass Bright Media | LinkedIn 0

x Invested Capital
282.3

12

15

18

21

24

27

30
4

Source: Architect Partners LLC, Capital IQ, company lings and public information

MOST ACTIVE ACQUIRERS LTM

1.
8 / 32 | $1.2B SteamFunk Labs Distill Wander Incredible Labs Tomfoolery Cloud Party Sparq Aviate

2.
7 / 17 | $4.6B Green Throttle Games Spider.io SlickLogin Deepmind Technologies Imperium Corp Nest Labs Bitspin

3.
5 / 12 | $18.9B Ascenta Oculus VR WhatsApp Brand Media Little Eye Software Labs

4.
1 / 10 | $2.0B Cloudant

5.
2 / 10 | $240mm Burstly SnappyLabs

6.
1 / 9 | $617mm appMobi

7.
1 / 8 | $800mm Phisix

8.
3 / 7 | $1.9B BlueKai Push IO (Responsys) Corente

9.
0 / 7 | $350mm

10.
1 / 6 | $5.1B Parature

Number of new deals in Q1 / total deals last 4 quarters | total spend last 4 quarters (a)

a) A number of transactions do not disclose acquisition price, so aggregate value of deals over the last twelve months is likely understated. Source: Architect Partners LLC, Capital IQ, company lings and public information

CORE TRANSACTIONS
Q1 - 2014
BUYER Aeroex AlternativeNetworks AOL BBVA Compass Bancshares Betsson Bharti Airtel Brightcove TARGET Shenick ControlCircle Project Rover Simple Finance Technology Oranje Casino and Kroon Casino Loop Mobile (India) Unicorn Media TRANSACTION VALUE ($MM) $29 $65 $83 $117 $197 $113 $51 TARGET DESCRIPTION Per ow test and measurement systems for software dened networks (SDN). Based in Dun Laoghaire, Ireland. Delivers complex managed hosting, cloud and data center services. Based in London, United Kingdom. Dba Gravity. Personalization services for users to discover content on the Internet, including a Chrome browser extension. Based in Santa Monica, California. Dba Simple. Offers deposit, money transfer, ATM and online bill payment services. Based in Brooklyn, New York. Online casino gaming. Based in Sliema, Malta. Provides GSM mobile services. Based in Mumbai, India. Cloud-based video ad insertion service called Once, which allows the insertion of video ads into a media companys main video content. Based in Tempe, Arizona. Personalization and insertion of online video ads for media clients. Based in San Mateo, California. Offers Metrics that Matter, a Web-based human capital analytics tool. Based in Chicago, Illinois. Online apartment search company operating under ApartmentHomeLiving.com and RentalHomesPlus.com. Based in Chicago, Illinois. Email marketing and retargeting company. Based in Levallois Perret, France. Urban adult contemporary radio station and an African American targeted station offering an urban gospel. Located in New York, New York. Over-the-top (OTT) optimized multi-screen video technology for mobile network operators and content owners. Based in Acton, Massachusetts. x x x x x

Premium Value M&A

AP M&A ALERT VC-BACKED x

Comcast Corporate Executive Board CoStar Criteo Emmis Radio

Freewheel Media KnowledgeAdvisors Apartments.com Tedemis WBLS 107.5 FM and WLIB 1190 AM

$360 $52 $585 $29 $131

Ericsson

Azuki Systems

$100

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

CORE TRANSACTIONS
Q1 - 2014
BUYER Global Payments Google TARGET Payments Processing DeepMind Technologies TRANSACTION VALUE ($MM) $420 $401

(CONTINUED)
Premium Value M&A
TARGET DESCRIPTION AP M&A ALERT VC-BACKED x x

Provides integrated payment services for 58,000 SMB merchants in the U.S. Based in Newark, California. Articial intelligence rm that specialises in machine learning, advanced algorithms and systems neuroscience. Based in London, United Kingdom. White label gambling services for mobile phone users. Based in London, United Kingdom. Cloud security gateway company. Based in Ramat Gan, Israel. Cloud-based talent science platform that assists business organizations in hiring, promotion and compensation processes. Based in Dallas, Texas. Facilities-based telecommunication provider. Based in Canada. Content protection platform that supports business models for TV operation and consumer devices such as computers, smartphones, tablets, game consoles and connected TVs. Based in Oslo, Norway. Operates Bright.com, an online job search portal. Based in San Francisco, California. Measures inuence and inuencers on topics across the social Web. Based in San Francisco, California. Domain name reservation and Web hosting service. Based in Sydney, Australia. Cloud-based social and customer engagement software. Based in Herndon, Virginia. Mobile technology solutions for banking, e-commerce, payments and travel businesses. Based in Istanbul, Turkey. Data management platform (DMP) that enables companies and marketers to personalize online, offline and mobile marketing campaigns. Based in Bellevue, Washington.

Gtech Imperva INFOR Investel Capital Kudelski

Probability Skyfence Networks PeopleAnswers Teliphone Navigata-Westel Conax

$28 $60 $200 $41 $250

LinkedIn Lithium Melbourne IT Microsoft Monitise

Bright Media Klout NetRegistry Group Parature Pozitron Yazilim

$121 $200 $45 $100 $98

x x

Oracle

BlueKai

$450

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

CORE TRANSACTIONS
Q1 - 2014
BUYER Platinum Equity Rakuten TARGET Sensis Viber TRANSACTION VALUE ($MM) $411 $900

(CONTINUED)
Premium Value M&A
TARGET DESCRIPTION AP M&A ALERT VC-BACKED

Network of local search and digital marketing solutions that deliver measurable leads to businesses in Australia. Based in Melbourne, Australia. Application for smartphones that allows users to make free calls and send text messages to each other. Based in Limassol, Cyprus. Personalized search and discovery solutions for TV providers, mobile device manufacturers and mobile operators. Based in Andover, Massachusetts. Online recruitment services. Based in Singapore and Malaysia. Provides predictive analytics for subscription businesses. Based in Issaquah, Washington. Offers Integrated Broadcast Management System (IBMS) for managing content, media operations, airtime programming and advertising sales. Based in London, United Kingdom. CMOS image sensors for mobile handsets, digital cameras, PCs, securities, toys and medical applications. Based in Seongnam-si, South Korea. Mobile application store that helps developers maximize the monetization and distribution of their applications. Based in San Mateo, California. Source code analysis tools for identifying software defects and security vulnerabilities. Based in San Francisco, California. In-ight satellite entertainment and connectivity solutions. Based in Melbourne, Florida. Provides Seamless Discovery, a platform for turning video content into video commerce that delivers personally relevant search and recommendations. Based in Durham, North Carolina. Develops online games. Based in China. x x x x

Rovi

Veveo JobStreet.com and Agensi Pekerjaan Staffing Services ScoutAnalytics

$69

Seek Asia ServiceSource

$525 $33

SintecMedia

Pilat Media

$82

SK Hynix

Siliconle Technologies

$46

Sungy Mobile

Getjar

$36

Synopsys Thales Avionics

Coverity LiveTV

$375 $400

TiVo Undisclosed Chinese Buyer

Digitalsmiths Shanghai Huopu Cloud Computing Terminal Technology

$135

$32

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

CORE TRANSACTIONS
Q1 - 2014
BUYER TARGET TRANSACTION VALUE ($MM) $514 Verint KANA Software

(CONTINUED)
Premium Value M&A
AP M&A ALERT

TARGET DESCRIPTION Develops Customer Experience Management (CEM) products leveraging service processes including e-mail, chat, knowledge management, agent desktop and Web self-service. Based in Sunnyvale, California. Offers online cosmetic retail. Based in Shanghai, China. Operates online printing sites for business cards, posters, photos on canvas and giant banners. Based in Deventer, Netherlands. Media company that enables artists to create, distribute and monetize their original content on YouTube. Based in Culver City, California. Designs and develops in-building wireless connectivity products. Based in Manchester, New Hampshire. Provides contextually relevant information on Android homescreens. Based in Palo Alto, California. Mobile game and technology company best known for its hit freemium mobile games My Horse, CSR Racing and Clumsy Ninja. Based in Oxford, United Kingdom.

VC-BACKED

Vipshop

Lefeng.com

$133

Vistaprint

People & Print

$33

Walt Disney Westell

Maker Studios Cellular Specialties

$725 $39

Yahoo

Aviate

$75

Zynga

Natural Motion

$527

Mobile | Internet | Digital Media M&A transactions with announced or estimated values between $25 million and $1 billion in consideration

OTHER NOTABLE DEALS

Q1 - 2014
BUYER Alibaba Amazon TARGET AutoNavi Double Helix TRANSACTION VALUE ($MM) $1,236 na TARGET DESCRIPTION Provides digital map content, navigation and location-based solutions. Based in Beijing, China. Video game studio concentrating on large-scale action games based on blockbuster movie franchises. Based in Irvine, California. One of largest providers of video, high-speed data and voice services in the United States, connecting over 15 million customers. Based in New York, New York. Cross-platform mobile messaging application that allows a client to exchange messages without having to pay for short messaging service (SMS). Based in Santa Clara, California. Wearable immersive virtual reality technology for applications in immersive gaming. Based in Irvine, California. Operates in three segments: B&N Retail, B&N College and NOOK. Based in New York, New York. Develops smart home appliances such as thermostats and smoke detectors that can program themselves and communicate with smartphones. Based in Palo Alto, California. x

Premium Value M&A

AP M&A ALERT VC-BACKED

Comcast

Time Warner

$45,200

Facebook

WhatsApp

$16,374

Facebook G Asset Management

Oculus VR Barnes & Noble

$2,300 $1,367

Google

Nest Labs

$3,200

Iliad

Bouygues Telecom, Portfolio of 2G/3G/4G Frequencies and Mobile Telephony Network

$2,496

Comprises a mobile network of 15,000 base stations and a portfolio of 2G/3G/4G frequencies.

Lenovo

Motorola Mobility

$2,908

Creates mobile devices and wireless accessories including smartphones on the Android operating system, feature phones and media tablet devices. Based in Libertyville, Illinois. Offers analog, digital radio, television, broadband Internet and telephony services under the brand name Ziggo. Based in Utrecht, the Netherlands.

Liberty Global

Ziggo

$15,454

M&A transactions with consideration in excess of $1B or with unannounced transaction values

11

OTHER NOTABLE DEALS

Q1 - 2014
BUYER TARGET TRANSACTION VALUE ($MM) $2,485 Media General LIN Media

(CONTINUED)
Premium Value M&A

TARGET DESCRIPTION Operates 43 television stations and 7 digital channels in 23 U.S. markets along with a portfolio of Websites, apps and mobile products that enable access to its content on multiple screens. Based in Austin, Texas. Comprises a broadband spectrum in lower 700MHz band capacity. The spectrum covers 150 million people in the United States. Mobile security and mobile device management (MDM). Based in Atlanta, Georgia. Provides broadband Internet, pay television, xed telephony and mobile services. Based in Madrid, Spain. Provides broadband Internet protocol (IP) communication services. Based in Tokyo, Japan. Operates a technology platform, MacroSense, which builds mobile user proles incorporating over 1,000 behavioral attributes that are extracted from mobile location data. Based in New York, New York.

AP M&A ALERT

VC-BACKED

T-Mobile Vmware Vodafone Yahoo Japan YP

Verizon's Spectrum in Lower 700 MHz A Band AirWatch Grupo Corporativo eAccess Sense Networks

$3,315 $1,540 $14,943 $3,172 na

M&A transactions with consideration in excess of $1B or with unannounced transaction values

12

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