M&A Snapshot Q4 2015

Web: architectpartners.com | Email: info@architectpartners.com

M&A SNAPSHOT
Q4 - 2015
2014

2013

Total M&A Exits (a)

2015

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

416

494

464

509

539

639

785

604

630

Core M&A exits up 49%

year-over-year.
Up 18% from Q3.

Core M&A Exits (b)

70

61

74

63

76

80

$20.0

$20.5

94

45

$18.5

Consideration
Exchanged

86

$13.8

$12.3
$9.6

$22.1

$13.5

$9.4

$billions (b)
Average Consideration $235mm.
Up 7% Year-OverYear

Proportion Premium Value (c)

% of Total M&A Exits

2%

3%

4%

4%

4%

4%

3%

3%

3%

% of Core M&A Exits

32%

42%

17%

18%

29%

27%

20%

24%

19%

Source: Architect Partners LLC, Capital IQ, company filings and public information
a) M&A exits within Mobile | Internet | Digital Media sectors
b) Core M&A exits are defined as transactions with announced or estimated values between $25 million and $1 billion in consideration, as these typically represent successful businessbuilding endeavors
c) Premium value transactions are defined as greater than 5 times invested equity capital or 5 times estimated last twelve months revenue (LTM)

M&A BY SECTOR
Commerce

Q4 - 2015

10%
Media

Service
Provider Consumer
Application
Analytics
6%
Application
3%
3%

15%

29%
15%
Security
4%

Core Transactions by Sector

Network
Infrastructure

11%
Hardware

4%
Digital
Marketing

Enterprise
Application

Number of Deals
by Sector
SECTORS

$476

$6,583

Total sector M&A value in $mm

$670

$868

$2,294

$2,892

$576

$2,964

$2,674

Source: Architect Partners LLC, Capital IQ, company filings and public information

$2,091

Consumer Application
Enterprise Application
Analytics Application
Network Infrastructure
App Development
Security
Commerce
Digital Marketing
Media
Hardware
Service Provider
3

PREMIUM VALUE DEALS

Q4 - 2015

Premium Value is defined as greater than 5 times invested equity capital

or 5 times the estimated last 12 months revenue (LTM)

Target | Acquirer

x LTM Revenue

IProperty Group | REA Group

Ikuyu Corp | Yahoo Japan
Jameda GmbH | Burda Digital GmbH
Ticketfly | Pandora Media
MarketShare Partners | Neustar
OzForex Group | Western Union

29x

1.5

4.5

7.5

10.5

12

13.5

LTM revenue multiple of

the target at the time of
acquisition
LTM revenue multiple of
the acquirer at the time
of acquisition

15

Target | Acquirer x Invested Capital

Lancope | Cisco

18x

Benaissance LLC | WEX Inc.

We Are Cloud SAS | Zendesk
Beijing Shandong Tech Co. | Beijing 263 Co.
DVTEL, Inc. | FLIR Systems
Vormetric | Thales e-Security
Elastica | Blue Coat Systems
Secure Islands | Microsoft
Silanis Technology | VASCO Data Security
Solidfire | Netapp
Smart Balloon | RNTS Media SA
Trustev | TransUnion*
0

1.5

4.5

Source: Architect Partners LLC, Capital IQ, company filings and public information
* purchase price dependent on meeting EBITDA goals

7.5

10.5

12

13.5

15
4

MOST ACTIVE
ACQUIRERS LTM
(In terms of number of Acquisitions)

1.

2.
4/16 | $398mm

4 / 12 | $3.0B

Secure Islands
Metanautix
Telekinesys Research
Mobile Data Labs

Clearleap
Cleversafe
The Weather Company
Gravitant

6.

4.

3.

7.

4 / 10 | $1.9B
Lancope
1 Mainstream Inc.
ParStream GmbH
Acano Limited

8.

5.
3 / 8 | $1.1B

3 / 7 | $320mm

Aderant Holdings
Clinisys Technologies
Atlas Medical Software

Perceptio
VocalIQ
FaceShift

9.

2 / 10 | $320mm

2 / 6 | $18.2B

1 / 6 | $533mm

BeBop Technology
Fly Labs

Saron Technology
RealityCap

Fastlane

10.
0 / 6 | $1.4B
None

1 / 4 | $360mm
SteelBrick

Number of new deals in Q4 / total deals last 4 quarters | total spend last 4 quarters (a)
a) A number of transactions do not disclose acquisition price, so aggregate value of deals over the last twelve months is likely understated.
Source: Architect Partners LLC, Capital IQ, company filings and public information

CORE TRANSACTIONS
Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

ACI Worldwide

PAY.ON AG

196

Develops online payment and risk management solutions. Based in

Munich, Germany.

All Web Leads, Inc.

Insurancequotes, Inc.

165

Operates a platform that acts as an insurance comparison shopping

site for consumers. Based in Denver, Colorado.

Atos SE

Unify, Inc.

427

A global communications software and services companies for Fortune

500 clients. Based in Boca Raton, Florida.

B. Riley & Co.

United Online

171

Delivers social networking as well as loyalty marketing through its

websites StayFriends.com and MyPoints.com. Based in Woodland Hills,
California.

Beijing 263

Beijing Shandong Tech.

54

Develops cloud-based mobile applications for streaming media for

media organizations in China. Based in Beijing, China.

Beijing Sevenstar
Electronics Co.

Beijing North
Microelectronics

144

Develops and manufactures high-density semiconductor equipment.

Based in Beijing, China.

Benchmark Electronics

Secure Communications
Systems, Inc.

230

Designs and manufactures tactical mission computing products. Based

in Santa Ana, California

Blue Coat Systems

Elastica, Inc.

280

Oers CloudSOC, a platform that enables transaction level security for

applications by combining data science and machine learning. Based
in San Jose, California

Bruker Sciences
Company

Jordan Valley
Semiconductors

53

Provides X-ray metrology solutions for front-end and back-end

applications in the global semiconductors industry. Based in Austin,
Texas.

Burda Digital GmbH

jameda GmbH

50

Helps doctors, medical practitioners and other healthcare specialists

publish their services through their online portal. Based in Munich,
Germany.

Cellcom Israel, Ltd.

Golan Telecom Ltd.

301

Operates a mobile network in Israel. Based in Tel Aviv, Israel.

TARGET DESCRIPTION

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

AP M&A
ALERT

VC-BACKED

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Cisco Systems

Acano Limited

700

Provides Acano, a web-based collaboration platform for sales teams.

Based in Uxbridge, United Kingdom

Cisco Systems

Lancope

453

Develops network visibility and security intelligence solutions. Based in

Alpharetta, Georgia.

Cision, Inc.

PR Newswire Association

841

Provides news and information used by global media organizations.

Based in New York, New York.

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Computer Programs &

Systems, Inc.

Healthland, Inc.

250

Oers healthcare information technology solutions including EHRs to

help hospitals are patient information across care settings. Based in
Minneapolis, Minnesota

Comtech Telecom Corp.

TeleCommunication Systems

457

Develops and delivers wireless communication technology

internationally. Based in Annapolis, Maryland.

CoreLogic, Inc.

FNC, inc.

475

Develops real estate collateral information software for compliance

with government regulations. Based in Oxford, Mississippi.

Cubic Corporation

GATR Technologies

233

Manufactures inflatable satellite communication antennas and

terminals for high-bandwidth comunnications. Based in Huntsville,
Alabama.

CyberArk Software

Viewfinity, Inc.

31

Provides generation application control and privilege management

solutions for securing desktop and server environments in enterprises.
Based in Waltham Massachusetts.

Deluxe Corp.

Datamyx, LLC.

160

Provides risk-based data-driven marketing solutions to improve direct

marketing return on investment. Based in Boca Raton, Florida.

Direct Energy, LP

Panoramic Power Ltd.

60

Provides a cloud-hosted energy management system to help

enterprises reduce energy expenses. Based in Kfar Sava, Israel.

Electra Private Equity

PhotoBox Limited

619

Allows users to turn digital photos into prints, photo books, calendars
and other products through its website. Based in London, United
Kingdom. Previously acquired by Photoways in 2011.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Industrial & Financial

Systems IFS AB

EQT Partners AB

664

Supplies component-based enterprise applications, developed using

open standards and service-oriented architecture. Based in Sweden.

FEI Company

DCG Systems, Inc.

160

Develops electronic connectors and semiconductor characterization

solutions for the semiconductor industry. Based in Fremont, California.

Flight Centre Travel

Group

Travelonomy Ltd.

28

An online travel company that provides travel deals and discounts for
students, faculty and youth. Based in Waltham, Massachusetts.

FLIR Systems, Inc.

DVTEL, Inc.

92

Develops and manufactures high-definition video surveillance

solutions. Based in Ridgefield Park, New Jersey.

Fusion
Telecommunications, Inc.

Fidelity Access Networks,

LLC

30

Provides cloud storage for o-site backup, universal access, file

sharing and folder synchronization. Based in Beachwood, Ohio.

Gaas Labs, LLC

Anadigics, Inc.

35

Designs and manufactures radio frequency semiconductor solutions

for mobile communication markets. Based in Warren, New Jersey.

Gannett Co., Inc.

Journal Media Group, LLC

302

Operates as a media company with print and digital publishing

activities in the United States. Based in Milwaukee, Wisconsin.

Goldenmax Int.
Technology

Shenzhen PCTX Tech

Development

341

Design and sells wireless communications terminal devices. Based in

Shenzhen, China.

Grovepoint Capital LLP

Payzone UK Limited

52

Operates a consumer payments acceptance network in the United

Kingdom. Based in Northwich, United Kingdom.

Hancom Inc.

iText Group NV

29

HCL Technologies Ltd.

PowerTeam, Inc.

46

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Provides programmable PDF software for PDF creation, editing and

inspection for finance and governmental companies. Based in Ghent,
Belgium.
Provides customer relationship management solutions for real-time
support, education and marketing solutions. Based in Minneapolis,
Minnesota.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

Huayi Brothers Media

Corp.

Zhejiang Dongyang Meila

Media

165

Engages in television and film script creation and film investment and
production. Based in Zhejiang, China.

Hunan Changgao Voltage

Switchgear Group

Zhengzhou Jinhui Computer

System Engineering

276

Develops Green Dam Youth Escort software that restricts children

from access to censored material on the internet. Based in
Zhengzhou, China.

IDI, Inc.

Fluent, Inc.

255

Provides integrated performance marketing solutions for digital

marketers. Based in New York, New York.

IHS, Inc.

CarProof, Inc.

468

Provides vehicle history reports in Canada and the United States.

Based in London, Canada.

Inflexion Private Equity

Partners LLP

Alcumus Holdings Ltd.

141

Provides compliance and certification services through its companys

software throughout the UK. Based in Aylesbury, United Kingdom.

Integrated Device
Technology Bermuda

Zentrum Mikroelektronik
Dresden AG

310

Design and manufactures mixed analog-digital, application-specific

circuits and standard semiconductor products. Based in Dresden,
Germany.

Intercontinental
Exchange

Trayport Limited

857

Provides electronic trading systems for broking, exchange and trading

markets in the United Kingdom and internationally. Based in London.

ITV Broadcasting Limited

UTV Ltd.

155

Oers television broadcasting services. Based in Belfast, United

Kingdom.

Kapsch TracCom AG

Telvent Trafico Y Transporte

39

Develops Advanced Trac Management Software (ATMS) solutions

for tolling and transit uses. Based in Madrid, Spain.

Laird PLC

novero GmbH

70

Manufactures vehicle communication and mobile device integration

solutions. Based in Dusseldorf, Germany.

Lookingglass Cyber
Solutions

Cyveillance, Inc.

35

Provides online threat intelligence solutions to protect networks,

customers, employees, information and physical assets. Based in
Reston, Virginia. Previously acquired by QinetiQ in 2009.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

AP M&A
ALERT

VC-BACKED

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

LoveWorld, inc.

Jiayuan.com International

235

Operates an online dating platform in the Peoples Republic of China.

Based in Beijing, China.

M/A-Com Technology
Solutions Holdings

FiBest Limited

60

Develops optical transmission and receiving devices for manufactures

building optical networks in metro access networks. Based in Tokyo,
Japan.

Matomy Media Group

Optmatic Media, inc.

25

Operates a video advertising platform managing the advertising

needs for publishers. Based in New York, New York.

Meisheng Cultural &

Creative Corp.

Hangzhou Joyreach Network

Technology

147

Owns and develops mobile role playing games (RPG) in China. Based
in Hangzhou, China.

Microsoft

Secure Islands Technologies

78

Provides information and control solutions for data immunization.

Based in Beit Dagan, Israel.

National Instruments
Corporation

Micropross SAS

108

Develops and supplies test and personalization solutions for RFID,

smartcard and NFC industries. Based in Paris, France.

NCC Group Limited

Fox-IT Group BV

141

Develops products and custom solutions that prevent, solve and

mitigate cyber threats, data breaches and fraud. Based in Deift,
Netherlands.

Nemetschek AG

Solibri, Inc.

49

Develops and markets software tools that analyze BIM for integrity,
quality and physical security. Based in Helsinki, Finland.

NetApp, Inc.

SolidFire Inc.

870

Provides a scale-out all-flash storage platform for various application

workloads. Based in Boulder, Colorado.

Neustar, Inc.

MarketShare Partners

450

Provides a marketing analytics platform that gives CMOs insights into

where to eectively allocate marketing budgets. Based in Los
Angeles, California.

New Sports Group

Limited

Wuxi Xinyou Network

Technology

143

Develops and markets first person shooter games in China. Based in

Wuxi, China.

TARGET DESCRIPTION

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

AP M&A
ALERT

VC-BACKED

10

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Nexstar Broadcasting
Group, Inc.

West Virginia Media Holdings

130

Comprises four television broadcasting stations throughout West

Virginia.

Pandora Media

Ticketfly

480

Provides a cloud-based integrated social marketing and ticketing

platforming for music events. Based in San Francisco, California.

Pandora Media

Rdio, Inc.

75

Provides online and oine streaming music services through its

platform. Based in San Francisco, California.

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Premier Healthcare
Solutions, Inc.

InflowHealth LLC

35

Develops a SaaS-based software that improves operational and

financial performance of physician practices. Based in Aliso Viejo,
California

Progressive Digital Media

Group

GlobalData Ltd.

104

Provides integrated online research platforms and reports for energy

and healthcare industries in the UK and internationally. Based in
London, United Kingdom.

PTC Inc.

Kepware Technologies

118

Develops communication and interoperability software solutions for

the automotive industry. Based in Portland, Maine.

Rapid7, Inc.

RevelOps, Inc.

71

Provides real-time elastic log management and analytics services

through its online platform. Based in Boston, Massachusetts.

REA Group Limited

iProperty Group Limited

420

Develops and operates internet-based real estate property portals

under iProperty.com. Based in Malaysia.

Reliance Communications
Ltd.

Sistema Shyam TeleServices

Limited

805

Operates as a telecom company that provides data services in India.

Based in Gurgaon, India. Previous acquired by Sistema JSFC in 2008.

RNTS Media SA

Smart Balloon, Inc.

45

Hosts tools, mobile advertisement formats and backend technology

to help publishers maximize revenue and acquire quality users. Based
in San Francisco, California.

Roper Technologies

Aderant Holdings, Inc.

675

Develops and oers business management software for law and other
professional services firms. Based in Atlanta, Georgia.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

11

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Roper Technologies

Atlas Medical Software

48

Provides cloud-based clinical connectivity and process integration

solutions worldwide. Based in Calabasas, California.

Roper Technologies

CliniSys Solutions Limited

261

Designs and develops clinical laboratory information management

solutions. Based in Chertsey, United Kingdom.

RPX Corporation

Inventus, LLC

232

Oers electronic data discovery solutions to global law firms, Fortune

1000 companies and government agencies. Based in Dallas, Texas.

Salesforce

SteelBrick Holdings

360

Provides Configure Price Quote applications for Salesforce customers.

Based in Palo Alto, California.

Shanghai BEI Capital Co.

Shanghai Meining Computer

Software Co.

31

Owns the financial portal stockstar.com. Previously owned by China

Finance Online Co. Based in Beijing, China.

Shenzhen Clou
Electronics

Bainian Jinhai Technology Co.

61

Develops automation software for government agencies in China.

Based in Jinhai, China.

Shenzhen Kingdom
Technology

China M-World Co.

84

Develops and provides mobile making and mobile payment solutions.

Based in Beijing, China.

Shenzhen Liantronics Co.

Shenzhen Limart Network

125

Provides an Internet search engine optimization platform for

marketers. Based in Shenzhen, China.

Sichuan Huiyan Optical

Communication Corp.

Guangdong XunTong
Technology Co.

239

Manufactures and supplies video surveillance products. Based in

Guangzhou, China.

Sophos Group

SurfRight BV

32

Develops online security software for Windows computers. Based in

Hengelo, Netherlands.

Speedcast International

NewCom International

33

Provides unified voice, video, data and content solutions worldwide.

Based in Miami, Florida.

TARGET DESCRIPTION

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

AP M&A
ALERT

VC-BACKED

11

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Stroer Venture GmbH

Statista GmbH

62

Tangel Publishing

YouAi, Inc.

250

Develops mobile arcade games in China. Based in Shanghai, China.

TDK Corporation

Micronas Semiconductor
Holding AG

221

Provides sensor-based solutions for automotive and industrial

electronics worldwide. Based in Zurich, Switzerland.
Provides data security solutions that protect data-at-rest in physical
and virtual cloud environments for businesses. Based in San Jose,
California.

TARGET DESCRIPTION
Operates a website that provides statistics of various industries
internationally. Based in Hamburg, Germany.

AP M&A
ALERT

VC-BACKED
x

Thales e-Security

Vormetric, Inc.

400

The Descartes Group

Oz Development, Inc.

30

Develops cloud integration solutions that streamline e-commerce,

warehouse and shipping processes. Based in Westborough,
Massachusetts.

The Western Union

Company

OzForex Group Limited

628

Provides international payments and foreign exchange solutions to

business and individuals. Based in Sydney, Australia.
Provides infrastructure-as-a-service solutions including enterprise
storage and database management services. Based in Little Rock,
Arkansas. Subsidiary of Windstream Hodlings.

TierPoint

Windstream Hosted Solutions

575

TransUnion

Trustev

21-44

Provides a user verification platform for real-time online and mobile

decision on transactions to prevent fraud. Based in Cork, Ireland.

Trend Micro

TippingPoint Technologies

300

Designs network-based intrusion prevention systems and appliances.

Previously acquired by 3com in 2005. Based in Austin, Texas.

Tyco International

ShopperTrak RCT

175

Provides shopper insights and trac analytics through its web-based

reporting tool. Based in Chicago, Illinois.

Vasco Data Security

Silanis Technology

85

Oers an electronic signature platform that provides e-signature

process management for the web. Based in Montreal, Canada.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

11

CORE TRANSACTIONS

(CONTINUED)

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

ViaWest, Inc.

iNetU, Inc.

163

Oers gated community cloud, private cloud and cloud computing

solutions with HIPAA compliance. Based in Allentown, Pennsylvania.

WEX, Inc.

Benaissance LLC

80

Provides a SaaS financial management systems for health benefits

administration in the United States.

Worldline SA

PaySquare SE

79

Provides payment processing services for customers in Eastern

Europe. Based out of Utrecht, Netherlands.

Yahoo Japan Corporation

Ikyu Corporation

822

Operates various sites that provide reservation services for hotels and
restaurants. Based in Tokyo, Japan.

Zayo Group Holdings

Allstream Corporation

465

Provides data networks, managed network services, hosting services

and internet access. Based in Toronto, Canada.

Zendesk

We Are Cloud SAS

45

Designs and develops BIME analytics, a cloud-based software for data

analysis. Based in Montpellier, France.

TARGET DESCRIPTION

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

AP M&A
ALERT

VC-BACKED

11

OTHER NOTABLE DEALS

Q4 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

Activision Blizzard, Inc.

King Digital Entertainment

5,680

Develops online mobile video games, including Candy Crush. Based in

Dublin, Ireland.
Oers an Internet television platform enables users to search, view,
and share video content across various devices. Based in Beijing,
China

AP M&A
ALERT

VC-BACKED

Alibaba Group Holding

Youku Todou, Inc.

4,335

Apple, Inc.

Faceshift AG

Develops motion capture software solution for facial expression

recognition. Based in Zurich, Switzerland.

Oers ParStream, a big data analytics platform that enables

interactive business analysis on dynamic big data. Based in Cologne,
Germany

Cisco Systems, Inc.

ParStream GmbH

Dell, Inc.

EMC Corporation

75,667

Develops and supports information infrastructure and virtual

infrastructure technologies, solutions, and services. Based in
Hopkinton, Massachusetts.

Endurance International

Constant Contact, Inc.

1,112

Provides online marketing tools that are designed for small

businesses, nonprofits, and associations worldwide. Based in
Waltham, Massachusetts.

Expedia, Inc.

HomeAway, Inc.

4,006

Operates an online vacation rental property marketplace than enables

property owners and rentals to find vacation homes. Based in Austin,
Texas.

Global Payments, Inc.

Heartland Payments, Inc.

4,449

Oers payment processing services in the United States. Based in

Princeton, New Jersey.

Microsoft, Inc.

Mentanautix

Naspers Limited

OOO KEH eCommerce

1,200

Oracle Corporation

StackEngine, Inc.

Engages in building big data analytics systems that help enterprises

to realize the potential of their data using standard SQL. Based in Palo
Alto, California

Owns and operates an online advertising website. Based in Moscow,

Russia.

Operates a platform that allows organizations to deploy, manage, and

scale resilient Docker applications. Based in Austin, Texas.

M&A transactions with consideration in excess of $1B or with unannounced transaction values

12

Web: architectpartners.com | Email: info@architectpartners.com