JEGIPressRelease

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
JEGI1H2014M&AOverview
AFewMegaDealsDriveHeadlines,butMostTransactionsunder$50Million;
M&AasaLeadingEconomicIndicator
New York, NY June 30, 2014 The media, information, marketing and technology sectors saw 752
transactionsannouncedinthefirsthalfof2014,atatotalvalueof$64.4billion.Dealvolumeincreasedby
6%from1H2013,butwiththehelpofFacebooks$19billionacquisitionofmobilemessagingapplication
WhatsApp in February and several other
large transactions, deal value more than
doubled from 1H 2013s $27.8 billion.
Twenty four large transactions with $500+
million price tags accounted for 71% of
totalannounceddealvaluebutonly3%of
deal volume. In contrast, small deals
under $50 million drove 83% of deal
volume in 1H 2014, according to The
Jordan, Edmiston Group, Inc. (JEGI)
(www.jegi.com), the leading independent
investment bank specializing in M&A
advisory services across these core
markets.
DominanceofSmallDealsSuggestsBusinessConfidenceRemainsWeak
The continuing trend of small deals dominating the M&A market raises questions about the level of
confidencethatentrepreneurs,corporationsandinvestorshaveinthecurrentrecovery.TheM&Amarket
tendstobeanaccurateleadingeconomicindicator,
as demonstrated by last weeks announcement
from the Bureau of Economic Analysis. US Gross
Domestic Product actually declined 2.9% in Q1
2014, considerably down from the Bureaus prior
estimate of a 1% decline, and even more
significantly down from the first estimate, which
showed a 0.1% increase. The Wall Street Journal
statesthatthe2.9%contractioninUSGDPmarksthelargestpullbackseeninnearlyfiveyears,reinforcing
doubtsaboutthenationseconomicrecovery.ThedataaboveandJEGIsownmarketintelligencesuggest
that corporations and investors arevigorously exploring acquisition opportunities but remain cautious to
pullthetriggeronlargertransactionsastheywaitforaclearerpictureoftheeconomysdirection.

JEGIPressRelease 2

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
LargeTransactionsin1H2014
Thefirsthalfof2014sawninemegadealshittingthe$1billion+mark,includingthe:
FacebookacquisitionofWhatsAppfor$19billion;
CVCCapitalPartnersandLeonardGreen&PartnersacquisitionofAdvantageSales&Marketing,a
sales and marketing agency that specializes in growing brands in the consumer packaged goods
industry,fromApaxPartnersfor$4billion;
PricelineacquisitionofrestaurantreservationsolutionsproviderOpenTablefor$2.6billion;
Charterhouse Capital Partners acquisition of SkillSoft, a provider of ondemand training and e
learningsolutions,forareported$2.3billion;
BerkshirePartnersacquisitionofamajoritystakeinCatalinaMarketingCorporation,aproviderof
consumerdriven marketing solutions to brand manufacturers, retailers and health providers, in a
dealvaluedatapproximately$2billion;
CoxEnterprisesacquisitionofa25%stakeinAutoTraderGroup,adigitalautomotivemarketplace
forcarshoppersandsellers,for$1.8billion;
KKR acquisition of Internet Brands, operator of media and ecommerce sites related to consumer
purchases,fromHellman&Friedmanfor$1.1billion;
Hellman & Friedman acquisition of a majority stake in Renaissance Learning, a provider of
computerbasedassessmenttechnologyandschoolimprovementprograms,for$1.1billion;and
Relativity Media acquisition of Fullscreen, a digital media company that builds nextgeneration
channelsandnetworksonYouTube,fornearly$1billion,accordingtoseveralsources.
M&AActivityinMarketingServices&Technology
Inrecentyears,theMarketingServices&TechnologysectorhasdominatedM&Aactivity,andthefirsthalf
of2014wasnodifferent.With307transactions,theMarketingServices&Technologysectoraccountedfor
41%oftotaldealvolume.Thissectorhad37moredealsthanthenextthreemostactivesectorscombined
HealthcareInformation&Technology(122deals),B2COnlineMedia&Technology(83deals),andMobile
Media&Technology(66deals).
In 1H 2014, a majority of the Marketing Services & Technology transactions fell within the subsectors of
marketingtechnology(18%),digitalagency(17%),data/analytics(11%),andtraditionalagency(9%).With
the growing impact of technology on the marketing services space and increasing focus on the quality of
data,wehaveseenaflurryofM&Atransactionshappeningintherealmofmarketingtech/automationand
data/analytics.
Indeed,asofthiswriting,JEGIisclosingasignificanttransactionbetweentwodigitalmarketingservices
playersthatwillbeannouncedshortly.

JEGIPressRelease 3

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
TheContinuedImportanceofMobile
M&A activity in Mobile Media & Technology has seen a continuous rise in both deal volume and deal
valueoverthepastseveralyears.Thegrowthinmobiletransactionsillustratesthedramaticshifttomobile
consumption, as highlighted in the IDC
and Flurry charts shown on the right.
Last month, JEGI advised the founders
and majority shareholders of Distimo,
the leading mobile app market
intelligenceandanalyticsprovider,inits
sale to competitor App Annie. The
merger creates the global market leader
in the mobile app analytics space, with
the largest transaction data sets for the
most publishers globally. Together, the
companieswillhavenearly600,000apps
relying on their analytics tools. The company is positioned to win across the mobile marketing
intelligence continuum, providing deep data and analytics via numerous content channels, including
books,music,andvideo.
LookingForward
While lackluster business confidence continues, we expect middlemarket M&A activity to remain slow
through the next quarter and small deals to continue leading the market. However, there is a growing
need for large and middlemarket companies to remain relevant within the marketing technology and
mobile landscape, which we anticipate will propel larger M&A transactions in future quarters. The debt
marketsremainstrong,whichwillalsohelpfundacquisitionsforbothstrategicandprivateequityplayers.
M&AHighlightsfor1H2014
Dealvolumeintheb2bonlinemediaandtechnologysectorrose29%inthefirsthalfof2014,with44
transactions,comparedto34in1H2013.Dealvalueincreasedsharply,to$1.9billion,drivenbyWalt
Disneys acquisition of Maker Studios for up to $950 million in Q1 2014. Notable transactions in the
secondquarterof2014includedthe:AxelSpringersStepStoneacquisitionofdigitalrecruitmentgroup
Jobsite from DMGT for $151 million; Vitruvian Partners acquisition of JacTravel, supplier of online
hotel bookings and inbound travel services for the tourism sector, for $136 million; and Bankrate
acquisitionofCaring,seniorcareresourcewebsite,for$54million.
Although b2c online media and technology was the third most active sector in deal volume in 1H
2014,with83transactions,volumedeclined30%vs.1H2013s119deals.Dealvalue,however,nearly
doubled,toatotalvalueof$7.6billion,duetoCoxEnterprises$1.8billionacquisitionofa25%stakein
AutoTraderGroupinJanuary;the$2.6billionPricelineacquisitionofOpenTableinJune;andRelativity
Medias$1billionacquisitionofFullscreeninMay.OthernotabledealsinQ22014includedtheAxel
JEGIPressRelease 4

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
Springer acquisition of Israeli classifieds website CoralTell Internet Services for approximately $230
million,andHelenofTroysacquisitionofHealthyDirections,healthpublisheranddirecttoconsumer
retailerofdoctorformulatednutritionalsupplementsandskincareproducts,for$195million.
Whiledealvolumeinthebusinesstobusinessmediasectorremainedflat,dealvalueincreasedmore
than8xinthefirsthalfof2014vs.1H2013,upto$1.7billion,withApaxPartnersacquisitionofa50%
stakeinTraderMediaforapproximately$979millioninJanuary,andtheWasserstein&Co.acquisition
ofALMMedia,providerofbusinessnewsandinformationfocusingonthelegalandcommercialreal
estate sectors, for $417 million. Another notable deal in Q2 2014 was the $240 million acquisition of
Autodata Publishing Group, publisher of technical information for the automotive aftermarket, by
BowmarkCapital.

The consumer magazines sector slowed this half with nine transactions, compared to 24 in 1H 2013,
anddealvaluedown41%,to$166million.NotableQ22014dealsincludedtheBBCacquisitionofthe
sports and crafts titles from Future for $40 million, and the Tinicum acquisition of F+W Media, a
contentandecommercecompanyservingenthusiastverticalmarketsthroughadiversifiedportfolioof
media, ecommerce sites, events, catalogs, etc., for an undisclosed sum. JEGI provided a fairness
opiniontothespecialcommitteeoftheBoardofDirectorsofF+WMedia.
Dealvolumeinthedatabaseandinformationservicessectorwasflatat32transactionsinthefirsthalf
of2014vs.1H2013,anddealvaluedroppedslightlyto$2.7billion.Notabledealsinthesecondquarter
included the: Blackstone Group and Goldman Sachs acquisition of Ipreo, provider of market
JEGIPressRelease 5

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
intelligence, deal execution platforms, and investor communication tools to investment banks and
corporations,fromKKRfor$975million;WoltersKluweracquisitionofamajoritystakeinThirdCoast
Holdings, developer of enterprise legal management software and services, for $180 million; and
Genstar Capital acquisition of B2B information and technology company Asset International for an
estimated$125+million,accordingtopeHUB.
M&Aactivityintheeducationinformation,technologyandtrainingsectorremainedflatinbothdeal
volumeanddealvaluein1H2014vs.1H2013,with43transactionsat$5billion.NotabledealsinQ2
2014includedthe:acquisitionbyInsightVenturePartnersandGICSpecialInvestmentsofiParadigms,
developer of cloudbased educational technologies for plagiarism prevention and content verification
applications,fromWarburgPincusfor$752million;JohnWiley&SonsacquisitionofCrossKnowledge,
a learning solutions provider focused on leadership and managerial skills development, for $175
million;andWeldNorthacquisitionofhumancapitalmanagementsoftwaredeveloperTruenorthlogic
and language and literacy software developer Imagine Learning from Sorenson Capital for
approximately$150million.
Theexhibitionsandconferencessectorwasflatintermsofdealvolumeinthefirsthalfof2014vs.1H
2013,at30transactions.Dealvalue,however,droppedsignificantly,downto$291million,becauseof
the $950 million Onex acquisition of Nielsen Expositions in 2013 (JEGI advised Onex in this deal).
NotabletransactionsforQ22014includedthe:AUAPrivateEquityacquisitionofBlueStarMedia,an
event, media and entertainment company that specializes in consumer expos, events and national
touringshowsandexhibits;UBMacquisitionofExpoCIHAC,provideroftradeshowsforconstruction
materials, machinery, equipment, hand and power tools, etc.; and the Lanyon acquisition of Passkey
International,providerofadvancedgroupreservationtechnologyformeetings,eventsandtravel.
The healthcare information and technology sector, the second most active sector in terms of deal
volume, increased by 17% in number of transactions in 1H 2014 vs. 1H 2013, up to 122 deals. Deal
value in the sector rose 73%, to $7.2 billion. Notable deals this quarter included: Summit Partners
acquisition of ABILITY Network, provider of a suite of Webbased workflow solutions to manage the
administrative complexities of healthcare for hospitals, for $550 million; WEXs acquisition of
Evolution1,providerofelectronicpayment,onpremise,andcloudcomputinghealthcaresolutions,for
$533 million; the IMS Health acquisition of the Cegedim Information Solutions and Customer
RelationshipManagement(CRM)businessfor$523million;andthe$370millionacquisitionofCDMI,
amedicalandpharmacybenefitmanagementcompany,byMagellanHealth.
ThemarketingservicesandtechnologysectorcontinuestodriveM&Aactivity,with307transactions
and $16.6 billion of value in 1H 2014. The two largest transactions of this quarter, also listed above,
include the CVC Capital Partners and Leonard Green & Partners $4 billion acquisition of Advantage
Sales&MarketingandKKRs$1billionacquisitionofInternetBrands.OthernotabledealsinQ22014,
whichreflectthewiderangeoftransactionsanddiversebuyerpoolforthissector,includedthe:
GTCR acquisition of Vocus, provider of marketing services and software to help clients engage
prospects,nurtureandconvertcustomers,andmeasuremarketingeffectiveness,for$481million;
JEGIPressRelease 6

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
NationalCineMediaacquisitionof ScreenvisionCinemaNetwork,providerof cinemaadvertising,
marketingandmediasolutionsforadvertisers,for$376million;
Acxiom acquisition of LiveRamp, an online platform for CRM retargeting and provider of data
onboardingsolutionstomarketers,publishersandadtechcompanies,for$310million;
HGGCacquisitionofamajoritystakeinAutoAlert,providerofdataanalyticsandleadgeneration
solutions to the automotive dealership industry, for a total enterprise value near $300 million,
accordingtoTheWallStreetJournal;
IBM acquisition of Silverpop, provider of email marketing software and marketing automation
solutions,for$270million;
SingTel subsidiary Amobee acquisition of Adconion Media, Inc. and Adconion Pty Limited, the
North American and Australian businesses of online advertising network Adconion, for $229
million;
Dunnhumby acquisition of demand side ad platform sociomantic labs for an estimated $175
million;
Amobee acquisition of Kontera Technologies, a digital content intelligence and marketing
technologycompany,for$150million;
Kantar Group acquisition of Precise Media Group, a business information group that monitors,
analyzes and draws insight from news, opinions and conversations to help clients understand
importanttrends,forapproximately$117million;and
AOL acquisition of Convertro, operator of a crosschannel marketing optimization and media
attributionengine,for$101million.
The number of deals for the mobile media and technology sector declined by 20% in the first half of
2014,ascomparedto1H2013,downto66transactions.Dealvalue,however,climbedexponentiallyto
$21.2 billion, due to the $19 billion Facebook/WhatsApp transaction in February. Notable Q2 2014
dealsincludedthe:IntuitacquisitionofCheck,afinancemobileappthatallowscustomerstopaybills
and track personal finances, for $360 million; Opera Software acquisition of AdColony, a video
advertising network that develops mobile video platforms, for $350 million; and App Annies
acquisitionofmobileanalyticscompanyDistimo,asmentionedabove(aJEGItransaction).
AboutJEGI
TheJordan,EdmistonGroup,Inc.(JEGI)ofNewYorkhasbeentheleadingindependentinvestmentbank
for the global media, information, marketing and technology sectors for nearly 27 years. The firm has
completed over 500 highprofile M&A transactions, servicing global corporations; middlemarket and
emerging companies; entrepreneurial owners; and private equity and venture capital firms. For more
information,visitwww.jegi.com.
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