JEGIPressRelease

JEGIQ32015M&AOverview
M&AActivityShowsSteadyGrowth;NearsPreRecessionLevels
NewYork,NYOctober1,2015OverallM&Aactivityacrossthemedia,information,marketing,software
and techenabled services sectors was redhot during the first three quarters of 2015, with 1,758
transactionsannouncedatatotalvalueof$106.2billionyearto
date.Bothdealvolumeandvalueshowedsolidgainsoverthe
same period in 2014, when 1,636 deals totaled $96.8 billion in
value.WiththeM&Amarketcontinuingitssurge,dealactivity
inchedclosertoalevelnotseensincetheprerecessionperiodin
2007, according to The Jordan, Edmiston Group, Inc. (JEGI)
(www.jegi.com), the leading independent investment bank
acrossthesecoremarkets.
LargeDealsin2015YTD
Twenty transactions in these sectors surpassed $1 billion in
valuethroughQ32015,includingthe:
Fidelity National Information Services $5.1 billion
acquisition of financial software and services provider
SunGard
Verizon $4.8 billion acquisition of digital media
companyAOL
Cox Automotive $4.5 billion acquisition of DealerTrack Technologies, a provider of webbased
marketingsolutionstotheautomotiveretailindustry
MediaGeneral$3.1billionacquisitionofdiversifiedconsumermediacompanyMeredith
Audi,BMWandDaimler$3.1billionacquisitionofNokiasHERE,aproviderofmapsandlocation
contentfornavigation,locationbasedservicesandmobileadvertisingapplications
Verisk Analytics $2.8 billion acquisition of Wood Mackenzie, a global energy, metals and mining
researchandconsultancygroup
QVC$2.5billionacquisitionofzulily,theonlineretailerofmerchandiseforwomen,childrenand
housewares
SS&CTechnologies$2.5billionacquisitionofAdventSoftware,aproviderofverticalapplications
forthefinancialservicesindustry
McGrawHillFinancial$2.2billionacquisitionofSNLFinancial,aproviderofanalysisandbusiness
intelligenceonfinancialinstitutions

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com

JEGIPressRelease

Expedia$1.7billionacquisitionofonlinetravelsiteOrbitz
LinkedIn $1.5 billion acquisition of Lynda.com, a provider of online educational videos for
individualstolearnbusiness,software,technologyandcreativeskills
Nikkei$1.3billionacquisitionofglobalbusinessnewsproviderTheFinancialTimes
TPG Capital, Fosun Industrial Holdings and Caisse de dpt et placement du Qubec joint $1.2
billionacquisitionofconsumerentertainmentshowscreatorCirqueduSoleil
Software&TechEnabledServices
With overall M&A activity booming, the Software & TechEnabled Services sector has been leading the
charge.Giventherapidadvancesinglobaltechnology,coupledwiththeincreasingconvergenceofmedia,
marketing, data and technology, companies are investing heavily in growing their software and
technologycapabilitiesthroughM&A.
Themostactivesectorbyfar,Software&TechEnabledServicesaccountedformorethanhalfofthedeal
volume and value, with 1,091 transactions totaling $58.1 billion. The chart below on the left shows a
breakdownofdealvolumebysubsectorwithinthisredhotsector.
Applicationsoftwarewasthemostactivesubsector,withnearlyonethirdoftheSoftware&TechEnabled
Servicessectordeals.OtheractivesubsectorswereITservices&distribution(17%ofthedeals),mobility
(12%),IToutsourcing(10%)andinformationmanagement(9%).
Thechartbelowontherightshowsafurtherbreakdownofthesegmentswithintheapplicationsoftware
subsector. Vertical applications accounted for the highest deal volume (31%), followed by enterprise
resourceplanning(18%),customerrelationshipmanagement(15%)andbusinessintelligence(13%).

Source:451Group

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com

JEGIPressRelease

LookingAhead
IntheU.S.,M&Aactivitycontinuestosizzle,spurredbythestabledomesticeconomy,strongdebtmarkets
and increased confidence in the corporate sector. With unprecedented capital reserves and the need for
growth, global corporations and private equity firms have healthy appetites for M&A. We also expect
Asian buyers to remain active in acquiring U.S. companies, particularly Chinabased firms with capital
parkedoffshore.
WeexpecttheU.S.economytocontinuegrowing,drivenbylowunemployment,corporateinvestmentand
the political cycle, which will drive increased spending in advertising and data & analytics through
November2016.Onthetechnologyfront,weforeseefurthergrowthinsoftwareandtechenabledservices,
particularlyinmarketingtechnologysolutions,ascompaniescontinuetobuildouttheirmarketingstacks.
We believe strong debt markets will continue, despite inevitable interest rate increases by the Federal
Reservedowntheroad.Banksstillhaverobustcapitalavailableandcontinuinginterestinbuildingout
their loan portfolios. Nonetheless, we remain wary of the volatility in the global stock markets and
potentialfalloutfromtheeconomicstateinChina,aswellastherefugeecrisisacrossEurope.
Yeartodate,JEGIhasbeenveryactiveonthedealfront,withanumberofrecentandpendingtransaction
announcements.InQ32015,JEGIannouncedeighttransactions:
The sale of dmg events Digital Marketing division, which operates global, marketleading B2B
eventsad:tech,iMediaandDigitalCollective,toComexposium
The merger of digital experience design firm Manifest Digital and content marketing agency
McMURRY/TMG
The significant growth investment in Jun Group, the leading mobile video and branded content
advertisingplatform,fromHalyardCapital
The sale of Soonr, a leading provider of enterprise file sharing and collaboration services for IT
businessmanagers,toAutotaskCorporation,aportfoliocompanyofVistaEquityPartners
The sale of Kester Capitals Briefing Media, the leading provider of business information and
marketingsolutionstotheUKagriculturalsector,toUKbasedprivateequityfirmLyceumCapital
(JEGIadvisedBriefingMediawithitsUKinvestmentbankingpartner,Clarity)
ThesaleofNavigationArts,adigitalstrategyandexperiencedesignfirm,toEPAMSystems
ThesaleofSelligent,aninternationalSaaSplatformdeliveringomnichannelaudienceengagement,
toHGGC(JEGIadvisedSelligentwithClarity)
Time Inc.s acquisition of inVNT, an experiential marketing company specializing in live media,
digitalandtraditionaladvertising,brandenvironmentsandcreativeservices

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com

JEGIPressRelease

M&AHighlightsThroughQ32015

Theb2bmediaandtechnologysectordeclinedindealvolumeinthefirstthreequartersof2015,with
75transactionsvs.84dealsoverthesameperiodin2014.Dealvalue,however,rose38%to$5.7billion,
given Nikkeis $1.3 billion acquisition of The Financial Times in Q3 and LinkedIns $1.5 billion
acquisitionofLynda.cominQ2.OthernotableQ32015transactionsincluded:Exorsacquisitionofa
39% stake in global news provider The Economist Group, valuing the company at $1.2 billion; Axel
Springers acquisition of an 88% stake in business and technology news provider Business Insider,
valuing the company at approximately $390 million; and Lyceum Capitals acquisition of Briefing
Media(aJEGItransaction).

TheconsumermediaandtechnologysectorsdealvolumewasflatthroughQ3vs.thesameperiodin
2014,at159deals.Dealvaluerose16%,to$17.1billion,duetoMediaGenerals$3.1billionacquisition
ofMeredithandQVCs$2.5billionacquisitionofzulilyinQ3.OthernotableQ3dealsthisyearwere:
TwentyFirst Century Foxs acquisition of a 73% stake in National Geographics media operations,
valuing the company at nearly $1 billion; Match.coms acquisition of online dating site Plentyoffish
Mediafor$575million;andVivendisacquisitionofan80%stakeinonlinevideoportalDailymotion,
valuingthecompanyatapproximately$300million.

The database and information services sector announced 41 deals through Q3, down from 53 deals
through September 2014. Deal value, however, rose significantly, to $6.3 billion, up over 60% from
2014, with Verisk Analytics $2.8 billion acquisition of Wood Mackenzie in Q1 and McGraw Hill
Financials$2.2billionacquisitionofSNLFinancialinQ3leadingtheway.OthernotabledealsinQ3
2015 included: Descartes Systems acquisition of MK Data Services, provider of cloudbased bulk
customerscreeningservices,for$84million;InteliusHoldingsacquisitionofClassmates,providerof

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com

JEGIPressRelease

online high school directories, class lists and year books, for $30 million; and Wolters Kluwers
acquisitionofSureTax,webbasedtaxcalculationengine,foranundisclosedamount.

Theexhibitionsandconferencessectorsawasharpincreaseindealvolumewith59transactionsinthe
firstthreequartersof2015vs.35inthesameperiodof2014.Dealvaluerosedramaticallyto$3.3billion
in2015,comparedto$434millionin2014,ledbyQ2s$1.2billionacquisitionofCirqueduSoleilbya
groupofinvestorsandDalianWandaGroupsacquisitionofWorldTriathlonCorporation,ownerand
organizer of the Ironman triathlon events, from Providence Equity Partners for $650 million in Q3.
Other notable transactions for Q3 2015 included: Clarion Events acquisition of tradeshow producer
UrbanExpositions;ComexposiumsacquisitionofdmgeventsDigitalMarketing(aJEGItransaction);
and Tarsus Groups acquisition of a 50% stake in tradeshow producer AMB Exhibitions, valuing the
companyat$40million.

Themarketingservicesandtechnologysectorcontinuestobeveryactive,withdealvolumeincreasing
through Q3 2015 to 463 deals vs. 2014s 450 deals. Deal value, however, decreased to $19.6 billion,
compared to $30 billion in the same time period of 2014, mainly due to several large transactions in
2014.Notabledealsforthethirdquarterof2015includedthe:
CarlyleGroupacquisitionofa50%stakeinPAConsulting,consulting,technologyandinnovation
firm,valuingthecompanynear$1billion
Sale of eBay Enterprise, provider of commerce technologies, omnichannel operations and
marketingsolutions,toaconglomerateofinvestorsfor$925million
comScoreacquisitionofmediameasurementfirmRentrakfor$850million
WPP and Providence Equity Partners acquisition of an 80% stake in Chime Communications,
provider of integrated sports marketing services, valuing the company at approximately $750
million
Advance Publications acquisition of 1010data, provider of big data discovery and data sharing
solutions,for$500million
Technicolor acquisition of The Mill, producer ofvisualeffectsprojects fortheadvertising,games,
film,TVandmusicindustries,for$292million
Adidas acquisition of runtastic, provider of products and services that gather sports data and
motivatepeopletolinkupwithlikemindedsportsenthusiasts,for$239million
NewsCorpacquisitionofUnrulyGroup,providerofaglobalplatformforsocialvideoadvertising,
for$177million
ApprissacquisitionofTheRetailEquation,providerofrealtimetransactionoptimizationsolutions
forretailers,foranundisclosedamount;
HGGC acquisition of omnichannel audience engagement platform Selligent (a JEGI and Clarity
transaction)

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com

JEGIPressRelease

Merger of digital experience design firm Manifest Digital and content marketing agency
McMURRY/TMG(aJEGItransaction)
EPAM Systems acquisition of digital strategy and experience design firm NavigationArts (a JEGI
transaction)
TimeInc.acquisitionofexperientialmarketingcompanyinVNT(aJEGItransaction)

M&A activity for the mobile media and technology sector rose in both number of deals announced
anddealvaluethroughQ32015,to121transactionsand$6.2billioninvaluevs.2014s107dealsand
$3.4 billion in value. The sharp increase in deal value was due to the Audi, BMW and Daimler
acquisitionofNokiasHEREfor$3.1billion.OthernotableQ32015dealsincluded:AOLsacquisition
ofMillennialMedia,providerofmobileadvertisingsolutions,for$253million;Snapchatsacquisition
of Looksery, developer of a mobile selfie imaging app, for a reported $150 million; and Halyard
CapitalsgrowthinvestmentinmobilevideoadplatformJunGroup(aJEGItransaction).

The software and techenabled services sector increased in both deal volume and value, with 1,091
transactions totaling $58.1 billion for the first three quarters of 2015, compared to 2014s 1,079
transactionsat$54.1billion.NotableQ32015transactionsincluded:theCarlyleGroupandGICPrivate
Limited acquisition of Symantec Corporations Veritas division, including storage and information
managementsystemsassets,for$8billion;Fidelitys$5.1billionacquisitionofSunGard;VistaEquity
Partners acquisition of Solera Holdings, provider of automotive claims processing software, for $3.7
billion; Digital Realty Trusts acquisition of Telx Group, provider of interconnection and colocation
services, for $1.9 billion; Emdeons acquisition of Altegra Health, provider of health and benefits
managementsoftware,for$910million;andAutotasks(aportfoliocompanyofVistaEquityPartners)
acquisitionofenterprisefilesharingandcollaborationservicesproviderSoonr(aJEGItransaction).

AboutJEGI
TheJordan,EdmistonGroup,Inc.(JEGI)hasbeentheleadingindependentinvestmentbankfortheglobal
media, information, marketing, software and techenabled services sectors for nearly 28 years.
HeadquarteredinNewYork,withofficesinBostonandAtlanta,aswellasaffiliatesinLondonandIndia,
JEGIhascompletednearly600highprofileM&Atransactions,servingglobalcorporations;middlemarket
and emerging companies; entrepreneurial owners and founders; and private equity and venture capital
firms.Formoreinformation,visitwww.jegi.com.
###

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com