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M&A SNAPSHOT
Q1 2013
APRIL 2nd, 2013
M&A SNAPSHOT
OVERVIEW COMMENTARY
M&A activity slowed considerably in Q1 2013, however, we believe levels are likely to rebound in the next quarter or two. Given the long lead times from initiation of M&A conversations to public announcement, looking back to Q3 and Q4 of 2012 gives us some answers to Q1 2013 lackluster levels. Economic uncertainty adversely impacts the condence of boards and senior management. We believe the U.S. budget paralysis and ongoing concerns about European economies played a material role in sapping the strength out of the M&A market over the past quarter. M&A activity within the $25mm - $1b range in Q1 2013 declined by a considerable 46% from Q4 2012 and was down 17% year-over-year from Q1 2012. Total consideration paid also declined by 40%, from $10b in Q4 2012 to $6b in the rst quarter of 2013. The evolution of commerce continues to be a signicant M&A theme, as 15% of transactions within the $25mm - $1b range were driven by this trend. Notable deals include Ingenicos $485mm acquisition of Ogone, ACI Worldwides $266mm acquisition of Online Resources, Googles $125mm acquisition of Channel Intelligence and FISs $120mm acquisition of mFoundry. In addition to e-commerce, proliferation of mobile device usage has prompted wireless carriers to explore methods to relieve the stress on mobile networks. In that vein, there were four network performance-enhancing transactions in Q1, including Ciscos $475mm acquisition of Intucell, Opera Softwares $155mm acquisition of Skyre Labs and Procera Networks $28mm acquisition of Vineyard Networks.
FOLLOWING ANALYSIS
M&A DASHBOARD: NOTABLE ACQUIRERS: M&A TRANSACTIONS: OTHER NOTABLE TRANSACTIONS:
SUMMARY OF QUARTERLY ACTIVITY IN NUMBERS AND TONE ACTIVE INFLUENTIAL BUYER ACTIVITY SUMMARY OF TRANSACTIONS BETWEEN $25MM-$1B IN VALUE SUMMARY OF NOTABLE TRANSACTIONS WITHOUT ANNOUNCED VALUE OR ABOVE $1B.
COMING SOON
ANALYSIS OF VC-BACKED M&A EXITS
M&A DASHBOARD
COVERAGE
Architect Partners tracks M&A activity within the converging Internet | mobile | digital media sectors. The following assessment is focused on M&A transactions with announced values of between $25mm and $1B as these typically re p re s e n t s u c c e s s f u l b u s i n e s s - b u i l d i n g endeavors.
MARKET TONE
Slowed, but anticipate moderate increase in activity levels as we move into 2013. 2011 Q2 Q3
61 63
Q1
68
Q4
57
Q1
41
2012 Q2 Q3
57 44 41
Q4
63
57
2013 Q1
34
$14
$12
$11
$12 $9
$14
$12
$12
$14
$10
$12 $6
12
16
12
15
17
14
18 13
$103 $107
$127
$92
$107
$104
47%
46%
48%
47%
41%
457$
482$
450$
417$
440$ 352$
352$
364$
440$
466$
364$ 387$
NOTABLE ACQUIRERS
The following acquirers are generally active or inuential buyers within the Internet | mobile | digital media sectors. Below, we highlight announced acquisitions by the most active players in the rst quarter of 2013.
ACQUIRER
# 4 3 3 2 2 2 2 2 2 2 2 2
TARGETS
TARGETS
NON SERVICE PROVIDER TRANSACTIONS 1 01/29/2013 Ingenico Ogone $485 Leading payment service provider in Europe offering e-commerce, ticketing, call centers, airlines and travel solutions. Brussels, Belgium-based. !
01/23/2013
Cisco
Intucell
$475
Provides self-optimizing network (SON) software that assists mobile carriers in managing and optimizing their cellular networks in response to changing conditions. Raanana, Israel-based. Develops and supplies a proprietary Digital Payment Framework to enable ePayment choices between consumers and financial institutions, creditors and billers. Chantilly, Virginia-based. Lifestyle Entertainment business includes audio, video, multimedia and accessories.
01/31/2013
ACI Worldwide
Online Resources
$266
01/29/2013
Funai Electric
02/15/2013
Opera Software
$202
$155
Offers Rocket Optimizer, which enables mobile carriers to optimize video or other multimedia content on crowded cellular networks. Also offers Horizon, a mobile browser extension and toolbar platform that allows users to personalize their mobile browsing experience. Mountain View, CA-based. Social site that discusses and recommends books. Santa Monica, CA-based.
03/28/2013
Amazon
Goodreads
$150
01/28/2013
Netgear
$145
Comprises intellectual property for manufacturing USB modems to provide mobile broadband connectivity to any computer. Carlsbad, California and Richmond, Canada-based. Develops and markets online games. Guangzhou, China-based.
02/05/2013
Ourpalm
Dovo Technology
$130
02/06/2013
Channel Intelligence
$125
Offers a Where-to-Buy feature, which allows companies to commerce-enable any digital marketing asset, including websites, display ads, video reviews, email, Facebook and other social media. Orlando, FL-based.
Note: Transaction values within a range are presented as a mid-point value. Source: Architect Partners, Capital IQ, company lings and public information
11
02/26/2013
Angel.com Inc.
$110
12
03/08/2013
Arieso
$89
13
02/06/2013
Bluefin Labs
$85
14
03/19/2013
NC2 Media
$78
Publishes guidebooks, digital books, city guides and maps that provide travel details to travelers. Footscray, Australia-based.
15
03/15/2013
Dropbox
Orchestra
$75
Offers Mailbox, a mobile email app that aims to simplify the way in which users interact and sort through their email messages. Palo Alto, CA-based.
16
02/22/2013
Elbrus Capital
$48
Provides document and data management solutions, including i-Archive paper document archive, scanning and digitizing documents, e-Archive e-document archive, document workflow design and advice. Moscow, Russia-based. CBS Bizhub develops and provides e-commerce solutions and platforms. PT. Panpages owns and operates a Web portal. British Virgin Islands-based.
17
03/01/2013
KV Asia Capital
CBS Bizhub and PT. Panpages and PanPages Twistage and AccessVia
$39
18
03/05/2013
Perceptive Software
$32
Twistage provides an online video platform (OVP) for enterprises and digital publishers (New York, NY-based). AccessVia offers a publishing platform that allows retailers to deliver print and digital promotions (Seattle, Washingtonbased). Develops iPhone application that allows instant summarization of any Webpage or article. London, UK-based. !
19
03/25/2013
Yahoo
Summly
$30
Note: Transaction values within a range are presented as a mid-point value. Source: Architect Partners, Capital IQ, company lings and public information
21
01/23/2013
Koch Media
Volition
$28
22
01/23/2013
Sega
THQ Canada
$26
Doing business as Relic Entertainment, the company develops games for PCs and consoles. Vancouver, Canada-based.
23
03/19/2013
$25
Publishes a weekly electronic newsletter, provides breaking news alerts, premium news alert and a Web application to access the latest news and issues on iPad. London, UK-based.
Note: Transaction values within a range are presented as a mid-point value. Source: Architect Partners, Capital IQ, company lings and public information
01/22/2013
$780
Wireless properties, including licences, network assets, retail stores and more than half a million subscribers. Includes spectrum in the 700MHz, 850MHz and 1900MHz bands covering primarily rural areas in the states of Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. Provides communication services including digital and HDTV, high-speed Internet, Web hosting, international long-distance, phone, Internet and TV. Hamilton, Canada-based. Provides mobile and broadband services such as text, media messaging, games, music and video, as well as data connections via GPRS, HSDPA, 3G and WLAN. Slough, UK-based. Offers residential and commercial video, high speed Internet, voice, and data services. Fort Mill, South Carolina-based. !
01/14/2013
Rogers Communications
$406
03/01/2013
Telefnica UK
$300
02/26/2013
TDS Telecommunications
Baja Broadband
$268
03/18/2013
M2 Telecommunications Group
Dodo Australia
$212
Provides telecommunication services including broadband Internet, wireless broadband, dial-up Internet, home phone, wireless telephony, Internet and VOIP services. Melbourne, Australia-based. Designs and sells Internet protocol (IP)-based telecommunications infrastructure products. Beijing, China-based. !
03/27/2013
$99
01/22/2013
Intermedia.net
Telanetix
$53
Operates as a cloud based Internet protocol (IP) voice services company. Bellevue, WA-based.
03/18/2013
M2 Telecommunications Group
EFTEL Limited
$50
Provides broadband, wireless broadband, mobile, home phone, and VoIP services. Melbourne, Australia-based.
10
01/28/2013
Anite
Elektrobit System Test and Certain Related Assets in the United States and China Kentrox
$42
Provides radio channel emulation tools and testing solutions for the development of the wireless technologies. Oulu, Finland-based with certain related assets in the United States and China. Provides site monitoring, management and control solutions for wireless and fixed line telecommunications carriers, cable and broadband network providers and utility companies. Dublin, Ohio-based.
11
03/18/2013
Westell Technologies
Note: Transaction values within a range are presented as a mid-point value. Source: Architect Partners, Capital IQ, company lings and public information
02/05/2013
Liberty Global
Virgin Media
$24,182
01/08/2013
Dish Networks
Clearwire
$10,422
02/07/2013
Charter Communications
Bresnan Broadband
$2,621
03/27/2013
$2,400
02/04/2013
Oracle
Acme Packets
$2,004
Provides session delivery network solutions that enable the delivery of voice, video, data and unified communications services and applications across Internet protocol (IP) networks. Bedford, MA-based. Provides telecommunications services, including local and international telecommunications services, mobile services and roaming services. Taipa, Macaubased. Provides policy management, diameter and SIP signaling, subscriber data management, performance intelligence center and SS7 signaling products. Morrisvile, North Carolina-based. Develops SaaS based social-media marketing software solutions that enable small and medium-sized businesses to create and manage their social networking profiles and promotions. Orem, Utah-based.
01/13/2013
$1,161
03/25/2013
Oracle
01/22/2013
Infusionsoft
GroSocial
Note: Transaction values within a range are presented as a mid-point value. Source: Architect Partners, Capital IQ, company lings and public information
10
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