Technology, Media & Telecom
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TECHNOLOGY, MEDIA & TELECOM QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 2Q 2016 www.harriswilliams.com Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. www.harriswilliams.de Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr.Aadil Khan, authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. TECHNOLOGY, MEDIA & TELECOM QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 2Q 2016 HARRIS WILLIAMS & CO. OVERVIEW CONTENTS HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM . IDM OVERVIEW . WHAT WE’RE READING KEY FACTS . SELECT M&A TRANSACTIONS – 2Q 2016 . IDM M&A ACTIVITY . Approximately 250 . IDM SECTOR OVERVIEWS professionals across seven . IDM PRIVATE PLACEMENTS OVERVIEW offices in the U.S. and Europe . IDM PUBLIC COMPARABLES OVERVIEW . TECHNOLOGY IPO OVERVIEW . Strategic relationships in . DEBT MARKET OVERVIEW India and China . APPENDIX: PUBLIC COMPARABLES DETAIL . 10 industry groups TMT CONTACTS HW&Co. Office UNITED STATES Network Office Jeff Bistrong Managing Director [email protected] HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS Sam Hendler Managing Director [email protected] INTERNET & DIGITAL MEDIA SOFTWARE / SAAS Mike Wilkins . AdTech and Marketing . eCommerce . Enterprise Software . IT and Tech-enabled Managing Director [email protected] Solutions . Media, Content, and . Data and Analytics Services EUROPE . Data and Information Gaming . Infrastructure and . Data Center and Services Security Software Managed Services Thierry Monjauze Managing Director [email protected] TMT VERTICAL FOCUS AREAS . Education . Fintech . Manufacturing . Public Sector and Non-Profit TO SUBSCRIBE PLEASE EMAIL: *[email protected] . Energy, Power, and . Healthcare IT . Professional Services . Supply Chain, Transportation, Infrastructure and Logistics SELECT 2016 AND 2015 HW&CO. TMT TRANSACTIONS Baarsma B2C trades as: has been has been acquired by has acquired has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by recapitalized by PAGE | 1 TECHNOLOGY, MEDIA & TELECOM QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 2Q 2016 DEAL SPOTLIGHT – NORTHSTAR TRAVEL GROUP HW&Co.’s TMT Group advised The Wicks Group and its portfolio company, Northstar Travel Group, on its sale to Wasserstein & Co. Northstar has exhibited impressive growth in recent years through both organic and inorganic initiatives that have expanded its solution suite and geographic footprint. a portfolio company of . Wasserstein is partnering with Northstar to provide the capital and investment experience intended to support Northstar’s continued transformation and growth. has been acquired by . The new partnership with Wasserstein will build upon past successes by leveraging resources that will aid the company in continued geographic expansion, new product development, and strategic acquisitions. June 7, 2016 ABOUT NORTHSTAR TRAVEL GROUP . Northstar is the leading provider of business-to-business information, content, events, data, research, custom content, and software dedicated to the global travel and meeting industries. Northstar Travel Group is the parent company of best-in-class brands including Travel Weekly, TravelAge West, Business Travel News, Successful Meetings, Meetings & Conventions, Travel Weekly China, M&C China, Phocuswright, and Inntopia. The company is based in Secaucus, NJ with offices in New York, NY; Glen Ellyn, IL; Los Angeles, CA; Winston-Salem, NC; Stowe, VT, and international offices in Singapore, Beijing, and Shanghai. PAGE | 2 TECHNOLOGY, MEDIA & TELECOM QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 2Q 2016 HARRIS WILLIAMS & CO. INTERNET & DIGITAL MEDIA (IDM) OVERVIEW Primary IDM Contact ABOUT THE SECTOR Mike Wilkins Managing Director Harris Williams & Co.’s Technology, Media & Telecom (“TMT”) Group is dedicated to providing 575 Market Street, 31st Floor superior merger & acquisition and capital markets advisory services to market leading companies. San Francisco, California 94105 We are pleased to issue the 2Q 2016 Internet & Digital Media Sector Update, which provides Office: 415.217.3411 commentary and analysis on the current IDM M&A environment and market trends. Mobile: 415.722.4550 [email protected] SECTION CONTENTS AdTech and Marketing Solutions eCommerce • Advertising Networks and Search Portals • Marketplace • Marketing Technology • Travel • eCommerce Enablement • Flash Sales, Promotional, and Coupons • Vertical eCommerce Data and Information Services Media, Content, and Gaming • Proprietary Data Networks • Digital Media • Community Based Information Services • Online Content • Social Media • Gaming SELECT HW&CO. INTERNET & DIGITAL MEDIA TRANSACTIONS Provider of B2B Leading Baarsma B2C trades as: Leading B2C Provider of Cloud-based Provider of news, inbound eCommerce online information data-driven information, demand wine retail community and analytics marketing and data, software generation platform in management platform for analytics tools and custom and sales Europe has been acquired by solutions has been acquired by the aviation has been acquired by to the has been acquired by has been acquired by has been acquired by content conversion industry automotive solutions for platform industry the travel industry PAGE | 3 TECHNOLOGY, MEDIA & TELECOM QUARTERLY INTERNET & DIGITAL MEDIA SECTOR REVIEW │ 2Q 2016 WHAT WE’RE READING WAL-MART EXPANDS FREE TWO-DAY SHIPPING (JUNE 29, 2016) Wal-Mart is making a strong push in eCommerce with recent strides that will better enable the company to compete with Amazon Prime. The retailing giant announced plans to increase the breadth of its online listings, engaging additional third-party sellers and raising aggregate SKU’s to roughly 10 million. Additionally, the company will now offer free two- day shipping to all U.S. customers via its “ShippingPass” program —a response to Prime offered at nearly half cost. The service improvement is part of a $2 billion investment intended to drive Wal-Mart’s development in eCommerce. Other brick-and-mortar retailers are faltering, as the infrastructure needed to shorten delivery windows—warehouse construction, inventory/transportation management technologies, etc.—erodes margins at too great a level. Amazon can bankroll such infrastructure with its cloud business and Wal-Mart with its sizable balance sheet. Yet some wonder whether retailers today can afford not to invest in eCommerce infrastructure given shifting purchase behavior. The Wall Street Journal THE BATTLE FOR THE POST-DIGITAL WORLD (JUNE 7, 2016) The evolution of marketing has progressed from pre-digital marketing’s one-to-many approach to digital marketing’s data-driven, one-to-one personalization approach, and is now shifting to a post-digital marketing method of “one-to-moment” marketing. These one-to-moments are considered a marketer’s opportunity to anticipate what a customer wants and to deliver a brand promise no matter the location or time of day. The big four of Amazon, Apple, Facebook, and Google have recently launched Amazon Dash and Echo, Apple iOS 9, Facebook bots, and Google Now, respectively, to compete for consumers’ attention. The more they embed themselves into natural consumer behaviors, the more they become the go-to platforms for businesses that want to connect with consumers through the one-to-moments approach. At the same time, the big four are collecting valuable consumer data that they can use to serve up more relevant content to their users, based upon searches, purchases, check-ins, and social media activity. TechCrunch IBM WATSON’S DATA-CRUNCHING GAINS TRACTION WITH MARKETING FIRMS (MAY 18, 2016) IBM Watson’s data-crunching capabilities are gaining traction among companies in the marketing space as brands seek to make better use of data in their marketing efforts. Watson, which gained fame after beating top human competitors on “Jeopardy” five years ago, analyzes troves of data to uncover patterns that humans might miss. The supercomputer is particularly adept at mining “unstructured data” including social media posts, videos, and images that can reveal consumer preferences outside of traditional data warehouses. So far, Watson has partnered with over 550 organizations including notable efforts with Havas Group and Turner Broadcasting to leverage its cognitive computing capabilities in order to deliver personalized campaigns and messages for target audiences. The Wall