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JEGI1H2012M&AOverview ActiveM&AMarketContinues,LedbyMarketing&InteractiveServices
NewYork,NYJune28,2012Mergersandacquisitionsinthemedia,information,marketingservicesand technologysectorscontinuedatafastclipinthefirsthalfof2012,asthenumberofdealsrose52%over 2011 levels, according to The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com), the leading independentinvestmentbankingfirmspecializinginM&Aacrossthesemarkets.Announcedtransaction valueincreased49%tonearly$32billion,primarilyduetoafewmultibilliondollartransactions,withthe balanceofmarketactivitycenteredaroundmidsizetransactions. Overall, acquirers have been focusing on smaller, complementary acquisitions, with nearly 95% of transactionsin1H2012atvaluesoflessthan$100million.Onlyfivedealsexceeded$1billioninvalue, including Alibaba Groups pending acquisition of 20% of its shares from Yahoo for $7.1 billion, and the $3.3billionbuyoutofTransUnionbyAdventInternationalandGoldmanSachs. Themajorityofthedealactivityinthe first half of 2012 took place across the interactive, marketing services and technology markets. B2B and B2C Online Media & Technology, Marketing & Interactive Services, and MobileMedia&Technologyaccounted for 79% of total deals and 75% of deal valuefortheperiod. Marketing&InteractiveServices There are clashing forces in the marketplace.Ontheonehand,thereis theuncertaintycreatedbysuchfactors as historically high unemployment rates and low consumer confidence, the Eurozone challenges in Greece, Spain and elsewhere, as well as poorly performing bellwether stocks and postIPO hangover (e.g., Zynga, Facebook, etc.). At the same time,unprecedentedwavesofchangeandinnovationarecreatingnewopportunitiesinthemarket.The explosive growth of social media the Socialization of Everything is transforming whole industries, suchasentertainment,news,ecommerce,andgaming.Largebrandsarequicklytryingtoadaptandare shiftingdollarstointeractivemediaandbelowthelinemarketing(i.e.,customercentriccommunications, typicallywithmeasurableresults).Asaresult,InternetadvertisingspendingforQ12012setanewrecord at$8.4billion,accordingtotheInteractiveAdvertisingBureau(IAB).Moreonlineconsumersthanever aretakingtotheInternettoinformandnavigatetheirdailylivesbydesktop,tabletorsmartphone,said RandallRothenberg,PresidentandCEO,IAB.Marketersandagenciesareclearlyandwiselyinvesting dollarstoreachdigitallyconnectedconsumers.

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

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At the same time, mobile is exploding. Smartphone sales have surpassed PC sales, and, according to StatCounter,mobiletrafficaccountedfor10%ofInternettrafficinMay2012vs.lessthan1%inDecember 2009.AccordingtoeMarketer,mobileadspendwillreach$10.8billionin2016,upfrom$2.6billionin2012 andrepresentingaCAGRof43%.Thereisasecularevolutionathand,andmarketingdollarscontinueto rapidly follow consumers. Media consumption continues to shift to the Internet, and now to mobile, movingawayfromtraditionalmedia.Onaverage,consumersarespending26%oftheirmediatimeonline and 10% of their media time with mobile, according to Kleiner Perkins partner Mary Meekers annual overviewofInternettrends.Digitaladspendinghasstartedtocatchupwithtimespentonline,with22% ofaddollarsflowingtotheweb.However,thegapisstillsignificantwithmobile,asitcapturesonly1%of addollars.AccordingtoMeeker,closingthegapbetweenshareoftimespentonline/onmobileandshare ofadvertisingdollarsspentonline/onmobilerepresentsa$20billionannualadvertisingopportunityinthe USandpointstothecontinuingmovementofaddollarstodigitalmediaintheyearsahead. Asaresult,companiesareinvestinginmarketingservicestobetterassisttheircustomersandcapturemore revenue.Advertisingagenciesandmarketingservicescompaniesareretoolingtheirbusinessmodelsby investinginintegratedandinteractivemarketingsolutions,suchasExperiansacquisitionofConversen,a pioneer in developing interaction management technologies, enabling crosschannel conversations (JEGI representedConverseninthisdeal).AccordingtoDougBacon,Director,CorporateDevelopment,Experian, We see Conversen as a bridge between our digital and traditional offerings. The concept of consistent messaging to the consumer, regardless of channel, is critical to marketing success. This acquisition becomes the glue that puts it all together and provides us with a platform to tie together our market leadingproductsintoasinglepointofentryforourclients. Large technology companies, such as IBM, Oracle, Adobe and others, are also aggressively investing in marketing technology solutions to help marketers create value from their data and provide customers with key business intelligence and analytics, to drive better customer experiences and enhance customer engagement. Oracles $300 million acquisition of Vitrue, which enables companies to manage their presence on social networks, clearly highlights this point. These trends have made Marketing & Interactive Services by far the most active sector for M&A,accountingfor40%ofalltransactionsand27% oftotalvaluein1H2012. AreasofFocusforMarketing&InteractiveServices M&A In the first half of 2012, the ad agency and digitalagencysubsectorswerethemostactivewithin Marketing & Interactive Services, accounting for a combined34%ofdealvolumeand26%ofdealvalue.

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

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Marketing technology and market research/consulting were the next most active subsectors, each accounting for 16% and15%, respectively, of deal volume for the half year. Other active subsectors for M&Aincludeddata&analytics(17deals),PRagency(12deals),adtechnology(13deals),andmonitoring &intelligence(11deals). DriversofM&AValueTheMarketing&InteractiveServicessectorsawonlyone$1+billiontransaction in the first half of 2012 Microsofts acquisition of Yammer, a provider of social networking portals for enterprises,for$1.2billion.However,thereweretwo$500+milliondealsandsevenmorewithvaluesof $200 million and higher. The marketing technology subsector accounted for 37% of Marketing & Interactive Services deal value, led by Salesforce.coms acquisition of Buddy Media, which helps companies manage content across social media platforms, for $745 million. Other marketing technology dealsmakingthetop10in1H2012includedtheIntuitacquisitionofDemandforce,aSaaSapplicationthat automatesInternetmarketingandcommunications,for$424millionandOraclesacquisitionofVitruefor $300million. Ad and digital agencies combined accounted for $2.2 billion of deal value in 1H 2012, led by WPPs acquisition of digital agency AKQA from General Atlantic for $540 million. Market research and consulting was next, accounting for 12% of deal value, including the acquisition by Genstar Capital of eResearch Technology, a provider of health outcomes research services, for $377 million. The following chartshowsthetop10Marketing&InteractiveServicesdealsbyvalueinthefirsthalfof2012:

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

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TheNew NormalAttheSIIAStrategic&FinancialInvestmentConferenceonJune21stinNYC,JEGI CoPresidents, Tolman Geffs and Scott Peters, provided the opening keynote presentation for more than 200M&Afocusedstrategicexecutivesandprivateequityinvestors.Thisinsightfulsessiondescribedthe confluence of global uncertainty with the forces of rapid technological change as the New Normal, leading to interesting business combinations via M&A activity. Examples include several deals highlightedabove,includingExperian/Conversen,Oracle/VitrueandSalesforce.com/BuddyMedia,aswell as the Amazon acquisition of Kiva Systems, which makes robots used in shipping centers to simplify operationsandreducecosts,andtheacquisitionbyFacebookofInstagram,whichprovidesFacebookusers withacompellingexperiencefor photosharing,for$1billion.Companies,possiblymorethanever,are focusingonservicingtheircustomers,andweexpecttoseemoreinterestingcombinationsviaM&Ainthe yearstocome.Toviewtheircompletepresentation,clickhere:http://tiny.cc/SIIA_Presentation. M&AHighlightsfor1H2012 The b2b online media and technology sector saw a 21% rise in the number of M&A transactions announcedin1H2012vs.1H2011anda160%increaseindealvalueto$7.9billion,ledbythepending AlibabaGroup/Yahoodeal.OthernotableQ2transactionsincludedtheIHSacquisitionofGlobalspec, b2bleadgenconnectingindustrialmarketerswiththeirtargetaudiencesinengineering,technicaland industrialmarkets;theacquisitionbyLinkedInofSlideShare,aprofessionalcontentsharingplatform, for$119million;andNorwestVenturePartnersacquisitionof49%ofManta,awebsiteforbusiness listingsservingthelocalmarket,for$44million.
Media,Information,MarketingServices&TechnologyM&AActivity
2012 JanuaryJune IndustrySector B2BOnlineMedia&Technology B2COnlineMedia&Technology BusinesstoBusinessMedia ConsumerMagazines Database&InformationServices EducationInformation,Technology&Training Exhibitions&Conferences Marketing&InteractiveServices MobileMedia&Technology Total
Source:JEGITransactionDatabase

2011 JanuaryJune No.of Value Deals (millions) 39 130 8 16 21 32 11 129 44 430 $3,056 $4,554 $23 $2,020 $3,064 $1,272 $165 $5,740 $1,345 $21,236 %Change No.of Deals 21% 2% 75% 69% 71% (3%) 164% 103% 66% 52% Value 160% (7%) 266% (94%) 103% (9%) 165% 51% 109% 49%

No.of Value Deals (millions) 47 133 14 27 36 31 29 262 73 652 $7,932 $4,242 $82 $122 $6,205 $1,153 $437 $8,677 $2,808 $31,658

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

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Theb2conlinemediaandtechnologysectorwasthesecondmostactiveinthefirsthalfof2012,with 133transactionsatatotalvalueof$4.2billionverysimilarresultstothefirsthalfof2011.Thelargest deal of the half was the acquisition by Cerberus Capital Management of 53% of AT&Ts Advertising Solutions business, which comprises a combination of print and online yellow page listings, for $950 million in April. Other notable Q2 deals included Axel Springers acquisition of Totaljobs, online recruitingplatform,fromReedElsevierfor$176million;YbrantDigitalsacquisitionofonlineshopping comparisonsitesPriceGrabber,ClassesUSAandLowerMyBillsfromExperianfor$175million;andthe acquisitionbyCoxTargetMediaofSavings.com,anonlinesourceforsavings,personalizeddealsand moneysavingsexperts,for$100million. M&Aactivityforthebusinesstobusinessmediasectorcontinuestoberelativelyquiet,withonly14 deals in the first half of 2012, for a total value of $82 million. In Q2, Questex Media sold its b2b industrial and specialty publications to North Coast Media; and Bobit Business Media acquired b2b mediaassetsforthetruckingindustryfromNewportBusinessMedia. The consumer magazine sector has been uneventful in the first half of 2012, with 27 deals at a total valueof$122million,asharpcontrasttothefirsthalfof2011,whichsawseveralmultihundredmillion dollar deals, including the acquisition by Hearst Corporation of Lagardres magazine portfolio for $651million. Thedatabaseandinformationservicessectorpickedupconsiderablyinthefirsthalfof2012,ledby the PE buyout of TransUnion in Q1; and two transactions in Q2 Veritas Capitals acquisition of Thomson Reuters Healthcare business, a provider of healthcare data and analytics, for $1.25 billion; andPiramalHealthcaresacquisitionofDecisionResources,aproviderofhealthcaredata,researchand consulting,fromProvidenceEquityPartnersfor$635million.OthernotableQ2dealsincludedtheR.R. DonnelleyacquisitionofEdgarOnline,adistributoroffinancialdataandpublicfilings,for$67million; andMarkitsacquisitionofDataExplorers,aproviderofglobalsecuritieslendingdata. Theeducationinformation,technologyandtrainingsectorsawasimilarnumberofdealsandvaluein thefirsthalfof2012,comparedtothefirsthalfof2011.ThemostnotabledealofQ2wastheacquisition byPLATOLearningofArchipelagoLearning,aSaaSproviderofsupplementaleducationproducts,for $301million.Pearsoncontinuedtobeveryacquisitiveintheeducationsector,withtwoacquisitionsin MayGlobalEnglish,whichoffersondemandenterprisesolutionsforadvancingEnterpriseFluency, for $90 million; and Certiport, provider of performancebased certification exams and practice test solutions.OthernotabledealsinQ2includedtheJohnWileyacquisitionoftextbookpublisherHarlan Davidson;andtheacquisitionbyBoathouseCapitalandRenovusCapitalPartnersofAtomicLearning, which provides educators with professional development and training resources for introducing technologyintheclassroom. Theexhibitionsandconferencessectorsawasharpincreaseinnumberofdealsandvalueinthefirst halfof2012,comparedtothefirsthalfof2011.The29transactionsannouncedatatotaldealvalueof $437millionrepresented164%and165%respectiveincreasesover1H2011levels.Twoeventservices dealsledtheparade,withMaritzacquiringExperient,aproviderofmeetingandeventservices,from Riverside Partners and Veronis Suhler Stevenson in April (JEGI represented Experient in this deal); and AdamGross,ChiefMarketingOfficer 2127540710;adamg@jegi.com www.jegi.com

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Gen Cap America acquiring Nth Degree, a provider of event management and marketing services, fromFrontenacCompanyinMarch.InQ2,globaleventcompaniescontinuedmakingacquisitionsof exhibitionsinemergingmarkets,suchastheTarsusacquisitionofLifeMedia,anorganizerofIstanbul basedtradefairsandITEsacquisitionofBeautexCo,anorganizerofbeautyeventsintheUkraine. Mobile media and technology was the third most active sector for M&A in 1H 2012, with 73 announced transactions at a total value of $2.8 billion, representing 66% and 109% increases, respectively,over1H2011.SeveralnotablemobilerelatedtransactionstookplaceinQ2,includingthe Facebook acquisition of Instagram. Facebook completed five additional mobile deals in the quarter, withtheacquisitionsofFace.com,mobilefacialrecognitionsoftwareandtechnology,for$60million; Karma Science, a mobile giftgiving application, for $80 million; as well as Tagtile, Lightbox and Glancee.OtherdealsinthequarterincludedGreeInternationalsacquisitionofFunzio,amobilegame developer,for$210million;theIntuitacquisitionofAisleBuyer,amobilepaymentservicethatallows customerstopurchaseanitemforhomedeliverybyscanningabarcodefrominsidethestore,for$90 million; and Conde Nasts acquisition of ZipList, which enables users to find recipes online and assembleshoppingliststosynctoiPhoneandAndroidphones,for$14million. AboutJEGI The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading provider of independent investment banking services for the media, information, marketing services and technology sectors. Celebratingits25thanniversaryin2012,JEGIhascompletedmorethan500highprofileM&Atransactions forglobalcorporations;middlemarketandemergingcompanies;entrepreneurialandfamilyowners;and privateequityandventurecapitalfirms.Formoreinformation,visitwww.jegi.com. ###

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