PressLaunchDate:

NewYork,NYJune30,2016

Contact:AdamGross,ChiefMarketingOfficer
+12127540710|adamg@jegi.com|www.jegi.com

JEGI H1 2016 M&A OVERVIEW

M&A Market Defies Global Economic Uncertainty and Remains
Robust in First Half of the Year

Againstabackdropofuncertainty
intheglobaleconomy,including
thefalloutfromthesurprisingUK
votetoseparatefromtheEU,
strongmergerandacquisition
activitycontinuedacrossmedia,
information,marketing,software
andtechenabledservicesinthe
firsthalfof2016,with1,175
transactionsannouncedata
combinedvalueof$121.2billion.

LedbyMicrosoftsannounced
acquisitionofLinkedInformore
than$29billion,dealvalue
increased126%overH12015,
whichgenerated$53.7billion.
Dealvolumeacrossthesesectors
exceededH12015(1,125transactions)by4%inthefirsthalfof2016,accordingtoJEGI,theleading
independentinvestmentbankservingthesecoremarkets.

Software&TechEnabledServices
TheSoftware&TechEnabledServicessectorledinbothdealactivityandvalue,with717transactionsvalued
at$48.7billioninthefirsthalfoftheyear.Thechartbelowshowsabreakdownofdealvolumeforthis
dynamicsector.

Applicationsoftwarewasthemostactivesubsector,accountingfornearlyonethirdofdealvolume.
NotableapplicationsoftwaretransactionsinQ22016includedthe:ThomaBravoacquisitionofQlikTech,
providerofbusinessintelligenceanalyticssoftware,for$3billion;FranciscoPartnersandElliottManagement
acquisitionofDellscorporateITmanagementsoftwareforanestimated$2billion;VeritasCapitalacquisition
ofVeriskHealth,providerofdataservicesandtechnologiestoimproveworkflowforhealthcareproviders,for
$820million;andseverallargemarketingtechnologydealsthataredescribedbelow.

Thechartbelowshowsafurtherbreakdownofthesegmentswithintheapplicationsoftwaresubsector.
Verticalapplicationssawthemostdealvolume(35%),followedbycustomerrelationshipmanagement(17%),
enterpriseresourceplanning(16%)andbusinessintelligence(14%).


Followingapplicationsoftware,ITservicesanddistribution(19%)wasthesecondmostactivesubsectorin
Software&TechEnabledServicesandsawCSCs$6billionacquisitionofHPsEnterpriseITServicesdivision.
ThenextmostactivesubsectorsweremobilityandIToutsourcing,bothat11%.

MarketingServices&Technology
Bydealvolume,MarketingServices&Technology
wasthesecondmostactivesectorinH12016,with
333transactionsworth$13.3billion.Not
surprisingly,nearlyhalfofthedealvaluewas
generatedintheredhotmarketingtechnologysub
sector,whichsaw$6.5billionofvalueacross57
deals.Headlinemarketingtechnologydealsinthe
secondquarterof2016includedSalesforces$2.9
billionacquisitionofDemandware,providerof
enterprisecloudcommercetechnologyandservices,
andVistaEquityPartners$1.8billionbuyoutof
Marketo,providerofcloudbasedengagement
marketingsoftware.

Newmarketentrantsplayedasignificantroleinboth
traditionalanddigitalagencyM&A,whichaccounted
foracombined90transactionstotaling$1.9billion.
AccentureacquireddigitalagencyIMJinQ2and
DeloitteDigitalacquiredadagencyHeatinQ1.IBM
wasalsoanactiveagencyacquirerinH12016,
purchasingthree,includingleadingdigitalcreative
agencyResource/AmmiratiinQ1(aJEGItransaction).

MARKETING SERVICES & TECHNOLOGY - M&A BY SUB-SECTOR

2016
January - June
Industry Sub-Sector

# Deals

Value (mil)

% Value

Ad Agency

49

$674

5.1%

Ad Network / Ad Tech

14

$721

5.4%

Content Marketing

$148

1.1%

Data & Analytics

39

$996

7.5%

Digital Agency

41

$1,225

9.2%

E-Commerce

10

$82

0.6%

Experiential Marketing

$74

0.6%

Lead Generation

$263

2.0%

Market Research/Consulting

23

$659

5.0%

Marketing Technology

57

$6,541

49.4%

Mobile Marketing

$185

1.4%

Out-of-Home Marketing

12

$635

4.8%

PR Agency

16

$107

0.8%

Social Media Marketing

16

$73

0.6%

$164

1.2%

Video Marketing
Other

18

$704

5.3%

Total

333

$13,252

100.0%

Source: JEGI Transaction Database


LookingAhead
Evenduringatumultuousglobalecosystem,drivenbythelandmarkBrexitvoteandtheupcomingU.S.
presidentialelection,weexpectthattheM&Amarketwillcontinuetoflourish.TheU.S.economy,whilenot
ashistoricallystrongfromagrowthrateperspective,isrelativelystable,withlowunemployment,strong
corporatebalancesheets,ampledrypowderamongstrategiccorporationsandprivateequityfirms,and
robustdebtmarkets.Aswell,Chinabasedcompaniescontinueoutboundacquisitionandinvestment,and
ChineseinvestmentintheU.S.sofarin2016hasalreadysurpassedallof2015stotal.AcurrentJEGI
engagementisinpostLOIexclusivitywithaChinesegroup,andthereareseveralotherChinesegroups(both
strategicandfinancial)activelybiddingonliveJEGIengagements.Bottomlinethereareanumberof
positiveindicators,allpointingtowardavibrantM&Amarket.

JEGIActivityinQ22016
JEGIsawastrongstarttotheyear,withninedealclosingstodateandseveralothersinthefinalstages.In
thesecondquarter,werepresentedPrizeLogic,theleaderindigitalengagementprogramsformajorbrands,
inasignificantinvestmentfromPamlicoCapital;Evanta,providerofleadershipdevelopmentand
collaborativeexchangeprogramsforFortune1000CsuiteexecutivesandaLeedsEquityPartnersportfolio
company,initssaletoCEBfor$275million;Bisnow,NorthAmerica'sleadingproducerofcommercialreal
estatenewsandevents,initssaletoprivateequityfirmWicksGroup;andBusinessJournals,Inc.(BJI),an
integratedmediacompanywithafocusonfashiontradeshows,initssaletoUBMfor$69million.Wealso
representedaleadingdatadrivenmarketingtechnologyandintelligenceplatforminasignificantinvestment
fromanundisclosedinvestor(thisdealhasnotbeenannounced).Staytunedforadditionaldeal
announcementsinthecomingweeks.

M&AHighlightsforH12016
M&Aactivityfortheb2bmediaandtechnologysectorsawexponentialgrowthindealvalueinthefirsthalf
of2016,thankstoMicrosofts$29.4billionacquisitionofLinkedIn.Removingthatmegadealfromthe
results,dealvalueinthesectorwasdown75%inH12016vs.H12015,astherewerefewotherlarge
transactionsinthesector.Dealvolumerose14%to50deals,comparedto44inH12015,withnotable
transactionsincluding:BankratesacquisitionofNextAdvisor,reviewsandratingsofonlineservices,for
approximately$210million;WassersteinsacquisitionofNorthstarTravelGroup,B2Binformationand
marketingsolutionsforthetravelandmeetingsindustries,fromWicksGroup;andWicksGroupsacquisition
ofBisnow(aJEGItransaction,asdescribedabove).

DealvolumeintheconsumermediaandtechnologysectorincreasedslightlyinH12016,with107
transactionsvs.100inthesameperiodof2015.Dealvalue,however,droppedsignificantly,to$3.9billionvs.
2015s$9.1billion,whichwasfueledbyVerizons$4.8billionacquisitionofAOL.NotabletransactionsinQ2
2016includedthe:RoviacquisitionofTiVo,videosolutionstoenableviewerstoconsumecontentacross
variousscreens,forapproximately$1.9billion;HearstVenturesandVerizonjointacquisitionofComplex
Media,anonlinepublishercateringtoyoungmen,foranestimated$250million;andStubhubsacquisition
ofTICKETBIS,anonlineplatformwhereuserscanbuyandselleventtickets,forareported$165million.

Thedatabaseandinformationservicessectorsawa13%declineinnumberoftransactionsannouncedinH1
2016vs.H12015,with27dealscomparedto31lastyear.However,transactionvalueincreaseddramatically
in2016to$34.2billion,duetoseveralmegadeals,includingQuintilesTransnationalHoldings$13.5billion
acquisitionofIMSHealth,providerofinformationandtechnologyservicestothehealthcareindustry,inQ2,
andtheQ1announcedmergerofglobalinformationcompanyIHSandfinancialinformationservicesprovider


Markit,withanestimateddealvalueof$10.3billion.OthernotableQ2dealsincluded:GICandSilverLakes
largeinvestmentinAncestry.com,thesubscriptionbasedprovideroffamilyhistoryinformation,valuedat
$2.6billion;GeneralAtlanticsacquisitionofamajoritystakeinArgusMedia,aproviderofbusiness
intelligenceandmarketdataforenergyandcommodities,valuedatapproximately$1.5billion;andXIO
GroupsacquisitionofJ.D.Power&Associates,whichtracksconsumersatisfactionandbuyerbehavioron
productsandservices,fromS&PGlobalfor$1.1billion.

JEGI M&A ACTIVITY BY SECTOR

2015
January - June
Sector
B2B Media & Technology

# Deals

Value (mil)

2016
January - June
# Deals

Value (mil)

% Change
# Deals

Value

44

$3,086

50

$30,190

14%

878%

100

$9,053

107

$3,937

7%

(57%)

Database & Information Services

31

$3,936

27

$34,205

(13%)

769%

Exhibitions & Conferences

42

$2,502

32

$2,341

(24%)

(6%)

278

$12,673

333

$13,252

20%

5%

87

$2,388

66

$1,566

(24%)

(34%)

708

$28,404

717

$48,735

1%

72%

Consumer Media & Technology

Marketing Services & Technology

Mobile Media & Technology
Software & Tech-Enabled Services

Sources:JEGITransactionDatabaseand451Group
Notes:SomeSoftware&TechEnabledServicestransactionsarealsoduplicatedinsomeoftheothersectors

M&Aactivityintheexhibitionsandconferencessectorsawa24%declineindealvolumeandamoremodest
declineof6%indealvalueinthefirsthalfof2016,with32transactionstotaling$2.3billionin2016vs.42
dealsand$2.5billioninvalueinthesameperiodof2015.Followingaweakfirstquarter,therewereseveral
notabledealsinQ22016,includingthe:VistaEquityPartnersbuyoutofCvent,corporateeventmanagement
softwareandsolutions,for$1.6billion;CEBacquisitionofEvantafromLeedsEquityfor$275million(aJEGI
transaction,asdescribedabove);UBMacquisitionofBusinessJournals,Inc.(BJI)for$69million(aJEGI
transaction,asdescribedabove);andSnowPhippsGroupacquisitionofECRM,aplatformthatenables
efficientbuyer/sellerinteractions,,fromBVInvestmentPartners.

Themarketingservicesandtechnologysectorcontinuestobeveryactive,with333transactionsworth$13.3
billioninvalueforH12016,upfromH12015s278dealsand$12.7billioninvalue.Severalnotable
transactionsarementionedaboveintheMarketingServices&Technologysegment.Othernotabledealsin
thesecondquarterof2016included:AxelSpringersacquisitionofeMarketer,providerofdataandinsights
ondigitalmarketing,mediaandcommerce,for$242million;IBMsacquisitionofBluewolfGroup,a
Salesforceconsultingfirm,for$240million;GannettsacquisitionofReachLocal,providerofonlinemarketing
andleadgenerationsolutions,for$170million;OpenTextsacquisitionofthecustomerexperiencesoftware
assetsofHPforapproximately$170million;PamlicoCapitalssignificantinvestmentinPrizeLogic(aJEGI
transaction,asdescribedabove);andNielsensacquisitionofRepucom,providerofsportsmeasurementand
intelligencesolutions.


M&Aactivityforthemobilemediaandtechnologysectordeclinedinbothdealvolumeandvalueinthefirst
halfof2016,to66transactionsand$1.6billioninvalue,comparedto87dealsand$2.4billioninH12015.
NotableQ22016dealsincludedthe:SpearheadIntegratedMarketingCommunicationGroupacquisitionof
Smaato,arealtimemobileadvertisingplatform,for$148million;SpinMasteracquisitionofTOCABOCA,
developerofchildrensmobileapps,fromBonnierCorporationforareported$100million;Verizon
acquisitionofTelogis,provideroflocationbasedsoftwaretomanagemobileresources;andReserveMedia
acquisitionofDash,providerofmobilepointofsalepaymentsolutions.

Thesoftwareandtechenabledservicessectorremainedrelativelyflatindealvolumewith717transactions
inH12016vs.708inH12015.Dealvalue,however,sharplyincreasedbymorethan70%to$48.7billion,led
byseveralmegatransactions,includingthoselistedintheSoftware&TechEnabledServicessegmentabove,
aswellasseveralothersintheITservicesandIToutsourcingsubsectors.Additionalnotabletransactionsin
Q2included:OraclesacquisitionofOpower,providerofcustomerengagementandenergyefficiencycloud
servicestoutilities,forapproximately$550million;AccelKKRsacquisitionofSciQuest,providerofsupply
chainmanagementsoftwareandservices,forapproximately$500million;andOpenTextsacquisitionof
Recommind,providerofediscoveryandinformationmanagementsolutions,for$163million.

ABOUTJEGI
JEGIhasbeentheleadingindependentinvestmentbankfortheglobalmedia,information,marketing,
softwareandtechenabledservicessectorsformorethan28years.HeadquarteredinNewYork,withoffices
inBostonandLondon(viaitspartnershipwithClarity),JEGIhascompletedmorethan600highprofileM&A
transactions,servingglobalcorporations;middlemarketandemergingcompanies;entrepreneurialowners
andfounders;andprivateequityandventurecapitalfirms.Formoreinformation,visitwww.jegi.com.