M&A Snapshot Q1 2015

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

M&A SNAPSHOT
Q1 - 2015
2013
Q1

Total M&A Exits (a)

466

Q2

387

2014

2015

Q3

Q4

Q1

Q2

Q3

Q4

Q1

327

406

416

494

464

509

639

Core M&A exits up 69%

year-over-year, with China
contributing 42% of this increase

70

61

Core M&A Exits (b)

34

33

Consideration
Exchanged
$billions (b)

74

76
63

45

41

$18.5
$6.1

$7.0

$8.1

$9.6

$9.4

$13.8

$12.3

$13.5

Core M&A Consideration

Exchanged up 44%, with China
contributing 72% of this increase

Proportion Premium Value (c)

% of Total M&A Exits

3%

3%

5%

2%

3%

4%

4%

4%

4%

% of Core M&A Exits

21%

32%

42%

17%

18%

29%

27%

20%

26%

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
Q1 - 2015

Service
Provider

Commerce

M&A continued strong in the first quarter of 2015,

again led by the Enterprise Application segment,
which accounted for 20% of core M&A. Digital
Marketing rose compared to Q4 2014. The most
strategically interesting transactions in Q1 2015
included Twitters eorts to aggressively expand its
value proposition to users via its acquisition of Niche
($45mm - $60mm) and Periscope, and eorts by
Samsung and PayPal to secure leading roles in
consumer payments via the acquisitions of LoopPay
and Paydiant ($280mm), respectively.

17%

4%

Media

16%

9%
Security

Consumer
Application

4%

5%

7%
Network
Infrastructure

4%

Hardware

Core Transactions by Sector

Analytics
Application

Number of Deals
by Sector

20%
14%

Digital
Marketing

Enterprise
Application

SECTORS

$2,014

$3,331

$267 $2,095

Total sector M&A value in $mm

$0

$315

$2,012

$1,115

$1,160

$992

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

$183

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

PREMIUM VALUE DEALS

Q1 - 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

Skymoons Technology | Geeya Technology

23x

Interxion Holding | Telecity

Advent Software | SS&C Technologies
Ricardo.ch AG | Tamedia AG
Beijing Six Rooms |
Dongcheng Performance Development

36x

Target | Acquirer

10

12

14

16

18

20

LTM revenue multiple of

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

x Invested Capital

Adin Media | Jiangsu Wutong Comms

Emerging Threats | Proofpoint
Endomondo | Under Armour
RevoApps | Monotype Imaging
MyFitnessPal | Under Armour
Z2 | King Digital Entertainment
IntellinX | Bottomline Technologies
Niche | Twitter
MobPartner | Cheetah Mobile
ProwebCE | Alpha Group; Edenred
Symphony Teleca | Harman Int'l Industries
Red Bend | Harman Becker Automotive Sys
Librato | Solar Winds
Avazu | Dalian Zeus Entertainment
Chango | The Rubicon Project
Paydian | PayPal
Yieldex | AppNexus

47x

12

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

16

20

24

28

32

36

40
4

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

1.

6.

2.

3.

3 / 21 | $1.2B

0 / 11 | $990mm

Launchpad Toys
Nimbuz
RedHotLabs

None

7.

4.
3 / 8 | $2.5B

3 / 7 | $410mm

3 / 7 | $426mm

Zeropaper Servicos
Porticor
Playbook Labs

Wit.AI
Quickfire Networks
TheFind

Equivio
Revolution Analytics
Sunrise Atelier

8.

5.

9.

10.

2 / 7 | $145mm - 160mm 2 / 7 | $367mm

1 / 5 | $3B

1 / 5 | $850mm

1 / 5 | NA

ZipDial Mobile Solutions

Niche

Semetric Limited

AlchemyAPI

LoopPay

Firstway Digital
SugarSync

Number of new deals in Q1 / 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
Q1 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

58.com

Anjuke.com

266.2

Operates an online platform for buying, selling, and renting properties.

Based in Shanghai, China.

AGS, LLC

Cadillac Jack, Inc.

374.8

Designs, manufactures, and markets casino games and systems. Based

in Duluth, Georgia.

Allot Communications

Optenet, S.A.

38.0

Provides security solutions to service providers and large enterprises

worldwide. Based in Madrid, Spain.

Alpha Group; Edenred SA

ProwebCE

57.0

Amber Road

ecVision

33.0

ANI Technologies

Serendipity Infolabs

200.0

AppNexus

Yieldex

100.0

auFeminin.com

Livingly Media

50.0

Avago Technologies
Wireless (U.S.A.)
Manufacturing

Emulex Corporation

725.9

Aveva Group plc

8over8 Limited

41.0

Baocheng Investment

Shenzhen Taole Network

Technology

130.9

Bottomline Technologies

IntellinX

84.9

Develops behavior tracking solutions. Based in Or-Yehuda, Israel.

67.7

Provides Omnia, an interoperable and open cloud-based platform to

connect an ecosystem of devices and appliances to provide services
that allow users to monitor, control, and automate their homes in
Europe and the United States. Based in Cambridge, United Kingdom.

British Gas Services

AlertMe.com

Provides a communication and management platform interfaced to an

e-commerce portal for works councils. Based in Levallois, France.
Provides cloud-based supply chain collaboration platform that
optimizes product life cycle and supply chain processes for private
label brands, retailers, and trading partners. Based in South Iselin, New
Jersey.
Operates a taxi booking portal that enables consumers to book taxis
online in India. Based in Bengaluru, India.
Provides advertisement forecasting, analytics, and trading tools for
online publishers and advertisers. Based in San Mateo, California.
Owns and operates fashion and beauty, entertainment, and home
design Websites for women in the United States. Based in San Carlos,
California.
Provides network connectivity, monitoring, and management products
for networks that support enterprise, cloud, government, and
telecommunications worldwide. Based in Costa Mesa, California.
Provides lifecycle contract management software solutions for
organizations that build and operate assets. Based in Derry, United
Kingdom.
Engages in the development and production of network games. Based
in Shenzhen, China.

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

AP M&A
ALERT

VC-BACKED
x

x
x
x
x

CORE TRANSACTIONS

(CONTINUED)

Q1 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

Burda Digital

Tomorrow Focus Publishing

32.6

Owns and operates news and utility journalism Internet portals. Based
in Munich, Germany.

AP M&A
ALERT

VC-BACKED
x

Capita plc

Constructionline

53.1

Operates an online database that enables buyers to source prequalified construction suppliers, contractors, and consultants. Based in
Basingstoke, United Kingdom.

Cheetah Mobile

MobPartner SA

58.0

Operates a mobile aliate network that connects advertisers with

their audience worldwide. Based in Paris, France.

Chengdu Santai
Electronics Industry

Yantai Weian Information

Technology

120.6

Owns and operates a financial website. Based in Yantai, China.

Dalian Zeus
Entertainment

Avazu

333.6

Focuses on oering advertisers with solutions for real-time and datadriven display advertising across various advertisement exchanges and
sell-side platforms worldwide. Based in Shanghai, China.

Dalian Zeus
Entertainment

Beijing Miaoqu Hengsheng

Technology

94.9

Develops web-based and mobile games. Based in Beijing, China.

Dalian Zeus
Entertainment

RaySns Technology

141.6

Develops Internet and online games. Based in Beijing, China.

Demandware

Tomax Corporation

75.0

Develops cloud-based retail solutions for retailers in North America.

Based in Salt Lake City, Utah,

Dun & Bradstreet

NetProspex

125.0

Provides business-to-business (B2B) marketing data management

services worldwide. Based in Waltham, Massachusetts.

Expedia

Travelocity.com LP

280.0

Provides travel services to leisure and business travelers in United

States and Canada. Based in Southlake, Texas.

Fujian Star-net
Communication

Asiatelco Technologies

52.2

Manufactures wireless access devices and equipment for carriers and

broadband Internet service providers. Based in Shanghai, China.

Geeya Technology

Chengdu Skymoons
Technology Company

352.5

Develops and oers online games. Based in China.

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

CORE TRANSACTIONS

(CONTINUED)

Q1 - 2015
BUYER

Premium Value M&A

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Global Payments

Realex Payments

126.2

Owns and operates an online payment gateway that provides

payment processing services for corporate and business clients selling
online and processing payments on behalf of retailers worldwide.
Based in Dublin, Ireland.

Great Wall Movie and

Television

Shanghai Macro Media Group

26.0

Provides digital marketing services. Based in China.

Gruppo MutuiOnline

7Pixel Srl

58.4

Oers many websites with price comparison features. Based in

Giussago, Italy.

GTT Communications

MegaPath Corporation,
Managed Services Business

152.3

Provides private networking, access services, and managed security

services to other corporations. Located in the United States.

Harman Becker
Automotive Systems
Manufacturing Kft.

Red Bend Software.

200.0

Oers mobile software management solutions for mobile devices and

services. Based in Waltham, Massachusetts.

Harman International
Industries

Symphony Teleca

780.0

Creates and commercializes SaaS/cloud enterprise software, mobile

products and solutions, big data and analytic services, and integrated
enterprise solutions to ISVs, mobile device and solutions
manufacturers, and the connected analytics-driven enterprises. Based
in Mountain View, California.

Hengtong Optic-electric

Beijing Wajinke Information

Technology

69.6

Provides mobile internet services including mobile value added and

marketing services. Based in China.

Infosys

Panaya

200.0

Provides cloud-based quality management solutions for enterprise

applications worldwide. Based in Ra'anana, Israel.

Insight Venture Partners

E2open

274.1

Provides cloud-based, on-demand software solutions for supply chain

management. Based in Foster City, California.

Jiangsu Wutong
Communications

Adin Media

217.1

Oers online advertising services based on multiple platforms

through consolidating media resources. Based in Shanghai, China.

Juara Sejati Sdn. Bhd.

REDtone International Bhd

108.4

Provides telecommunications services in Malaysia, the Peoples

Republic of China, and internationally. Based in Puchong, Malaysia.

Keda Group

Beijing Aspiration
Advertisement

151.9

Oers Internet marketing services. Based in Beijing, China.

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

CORE TRANSACTIONS

(CONTINUED)

Q1 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

King Digital
Entertainment

Z2

150.0

Creates free-to-play social and multiplayer games for mobile devices.

Based in Seattle, Washington.

Kwang Dong
Pharmaceutical

Korea ePlatform

37.1

Operates an online marketplace for businesses. Based in Seoul, South

Korea.
Provides video, audio, and data connectivity solutions that enable the
distribution and presentation of high-definition (HD) and 4K ultra
high definition (4K UHD) content for the mobile, consumer electronics
(CE), and personal computer (PC) markets. Based in Sunnyvale,
California.
Develops software solutions for insurance and financial services
industries in the United Kingdom and internationally. Based in Halifax,
United Kingdom.
Provides navigation software solutions worldwide. Based in Seoul,
South Korea.

Lattice Semiconductor

Silicon Image

565.0

LDC (Managers) Limited;

Scottish Equity Partners

SSP Holdings

305.3

LIG Special Purpose

Acquisition 2nd Co.

EnGIS Technologies

37.6

Magyar Telekom
Telecommunications
Public Limited Company

GTS Hungary Tvkzlsi Kft.

48.4

Provides voice, Internet, and data network services in Europe. Based

in Budars, Hungary.

546.6

Provides software-based telecommunications networking solutions in

the Americas, Europe, the Middle East, Africa, and the Asia-Pacific
regions. Based in Richardson, Texas.

Mitel U.S. Holdings

Mavenir Systems

AP M&A
ALERT

VC-BACKED
x

Mixi

Hunza

95.7

Operates a peer-to-peer ticket marketplace under the name Ticket

Camp to connect buyers with users who have extra tickets for live
performances and other amusement events. Based in Tokyo, Japan.

Mobile Network Group

Appsfire SAS

30.0

Operates an advertising platform for application developers and

advertisers. Based in Paris, France.

Monotype Imaging

RevoApps

27.0

Ofers mobile advertising solutions. Based in New York, New York.

Nexstar Broadcasting
Group

Yashi

33.0

Provides digital marketing services. The company owns and operates

audience buying platform for gaming, entertainment, and lifestyle
sectors. Based in Toms River, New Jersey.

Nio

Gaming Innovation Group

73.6

Builds iGaming products. Based in Ta Xbiex, Malta.

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

CORE TRANSACTIONS

(CONTINUED)

Q1 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

ODS Technologies

HRTV

72.8

Operates a television-based multimedia network which oers news,

information, and entertainment to horse fans. Based in Arcadia,
California.

Ourpalm

Blingstorm Entertainment

342.5

Develops and markets mobile games. Based in China.

PayPal

Paydiant

280

Provides mobile payments solutions. Based in Auburndale,

Massachusetts.

Proofpoint

Emerging Threats Pro

40.0

Designs and develops security software. Based in Lafayette, Indiana.

Rakuten

OverDrive

410.0

Distributes digital eBooks, audio-books, music, video, and other

digital content worldwide. Based in Cleveland, Ohio.

Rocket Internet AG

Talabat General Trading and

Contracting Company

169.6

Oers online food delivery services. Based in Al Daiya Area, Kuwait.

Rongxin Power Electronic

Montnets Technology

525.3

Engages in the management of mobile data business and software

development. Based in Shenzhen, China.

S. Carter Enterprises

Aspiro AB

56.1

Provides WiMP branded music streaming subscriptions to end users.

Based in Malm, Sweden.

SolarWinds

Librato

40.0

Develops software for monitoring and managing cloud applications

and maximizing the utilization of resources in clouds and data
centers. Based in San Francisco, California.

Songcheng Performance
Development

Beijing Six Rooms

417.7

Beijing Six Rooms., Co. operates a video sharing website. The

company is based in Beijing, China.

Sonus Networks

Treq Labs., Software Defined

Networking Business

79.3

Provides solutions that optimize networks for voice, video, and UC

(unified communications) for both enterprise and service provider
customers. Based in Sunnyvale, California.

Spectris plc

ReliaSoft Corporation

42.0

Provides reliability engineering software, training, and consulting and

related services. Based in Tucson, Arizona.

stamps.com

PSI Systems

215.0

Oers computer programs that allow users to print postage and

shipping labels. Based in Palo Alto, California.

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)

Q1 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Synchronoss
Technologies

F-Secure Oyj,
Personal Cloud Assets

60.0

Tamedia AG

ricardo.ch AG

259.2

Temenos Group AG

IGEFI Group Srl

260.3

Temenos U.S.A.

Akcelerant Software

55.0

TeraGo Networks

RackForce Networks

25.9

The Rubicon Project

Chango

116.0

Twitter

Niche

45.0 - 60.0

Under Armour

Endomondo ApS

85.0

Under Armour

MyFitnessPal

475.0

Vector Capital

Saba Software

270.2

Yelp

Eat24Hours.com

134.2

Oers online restaurant order processing services to restaurants and

merchants. Based in San Francisco, California.

Zayo Group

Latisys Holdings

675.0

Provides colocation and infrastructure as a service (Iaas). Based in

Englewood, Colorado.

Zomato Media

Wanderspot

52.0

Owns and operates Urbanspoon, an online restaurant guide. Based in

West Hollywood, California.

Jiayuan.com International

70.3

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

Based in Beijing China.

TARGET DESCRIPTION
Comprises personal cloud platform of F-Secure Oyj. Located in
Finland.
Operates as an online portal in Switzerland. Based in Zug,
Switzerland.
Provides software to the investment funds industry. Based in
Strassen, Luxembourg.
Provides connected software applications and advisory services to
the financial industryluding credit unions and banks in the United
States and Canada. Based in Malvern, Pennsylvania.

AP M&A
ALERT

VC-BACKED

Provides cloud hosting services. Based in Kelowna, Canada.

Operates a programmatic advertising platform that connects
marketers with their target audience in real time across display,
mobile, FBX, twitter, and video. Based in Toronto, Canada.
Helps social media talent manage their publishing eorts across
various social media platforms. Based in New York.
A social sports and fitness network that enables the users to
automatically track their sports data and monitor their performance
over time. Based in Copenhagen, Denmark.
Operates an online nutrition and calorie counter database that allows
users to record their food intake, and track calorie counting and food
plans. Based in San Francisco, California.
Provides cloud-based intelligent talent management solution for
organizations to hire, develop, engage, and inspire people worldwide.
Based in Redwood Shores, California.

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

x
x
x

11

OTHER NOTABLE DEALS

Q1 - 2015
BUYER

Premium Value M&A

TARGET

TRANSACTION
VALUE ($MM)

Bain Capital

Blue Coat Systems

2,400.0

Canon

Axis AB

2,839.8

CCH I

Bright House Networks

10,439.0

CommScope

TE Connectivity., Telecom,
Enterprise and Wireless
Business

3,000.0

DH Corporation

Fundtech

1,250.0

Expedia

Orbitz Worldwide

1,788.0

Hewlett-Packard

Aruba Networks

2,650.8

Hutchison 3G UK

Telefnica UK

15,400.8

Lexmark International
Technology S.A.

Kofax Limited

1,014.3

Netinvest

Skrill Holdings

1,760.3

Samsung

LoopPay

SS&C Technologies

Advent Software

2,585.7

Telecity Group

Interxion

2,707.3

TPG Telecom

iiNet

1,302.1

Twitter

Periscope

Uber

deCarta

TARGET DESCRIPTION
Designs, develops, and sells products and services that secure,
accelerate, and optimize the delivery of business applications and
other information to distributed users over a wide area network
(WAN) or the public Internet/Web. Based in Sunnyvale, California.
Provides network video solutions for professional installations in
Europe, Africa, the Middle East, North and South America, and Asia.
Based in Lund, Sweden.
Owns and operates cables systems in the United States. Based in East
Syracuse, New York.
Supplies infrastructure components and systems for the
telecommunications market and electronic components for the data
communications market.
Provides end-to-end financial transaction processing software
solutions for financial institutions internationally. Based in New York.
Operates as an online travel company worldwide. Based in Chicago,
Illinois.
Provides enterprise mobility solutions worldwide. Based in Sunnyvale,
California.
Provides mobile and broadband services to consumers and
businesses in the United Kingdom. Based in Slough, United Kingdom.
Provides capture and business process management (BPM) software
and related maintenance and professional services. Based in Irvine,
California.
Provides digital payment services worldwide. Based in London, United
Kingdom.
Provides a mobile wallet platform that allows consumers to pay
virtually everywhere and store their cards on their smartphone. Based
in Burlington, Massachusetts.
Provides software products and services for automating and
integrating data and work flows worldwide. Based in San Francisco,
California.
Provides carrier-neutral colocation data center services in Europe.
Based in Amsterdam, the Netherlands.
Provides Internet and telephony services to various residential,
regional, corporate, and government customers in Australia. Based in
Perth, Australia.
Develops an application for live streaming of videos. Based in San
Francisco, California.
Provides location based solutions. Based in Los Altos, California.

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

AP M&A
ALERT

VC-BACKED

12

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