April 2014 M&A and Investment Summary
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April 2014 M&A and Investment Summary Expertise. Commitment. Results. Table of Contents 1 Overview of Monthly M&A and Investment Activity 3 2 Monthly M&A and Investment Activity by Industry Segment 10 3 Additional Monthly M&A and Investment Activity Data 42 4 About Petsky Prunier 58 Securities offered through Petsky Prunier Securities, LLC, member of FINRA. This M&A and Investment Summary has been prepared by and is being distributed in the United States by Petsky Prunier, a broker dealer register with the U.S. SEC and a member of FINRA. Petsky Prunier is not affiliated with Altium Capital Ltd, but has partnered with Altium to expand its international presence. Altium has not prepared or verified the information in this Summary. Persons in the United States should contact Petsky Prunier for further information or services. This M&A and Investment Summary is not being distributed by Altium Capital Ltd in the United States and Altium Capital Ltd is not offering any services to persons in the United States. 2| M&A and Investment Summary April 2014 M&A and Investment Summary for All Segments Transaction Distribution . A total of 427 deals were announced in April 2014, of which 236 were worth $12.1 billion in aggregate reported value . Digital Media/Commerce was the most active segment with 108 deals announced, respectively . Software was the highest reported value segment with 88 deals announced, of which 52 were reported at $3.1 billion in aggregate value . Strategic buyers announced 199 deals (47 percent of total volume), of which 44 were worth $5.3 billion in aggregate value . VC/Growth Capital investors announced 215 deals, of which 189 were reported for $5.5 billion . Buyout investors announced 13 deals during the month, of which three were reported at $1.3 billion in aggregate value April 2014 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Media/Commerce 108 25% $1,813.7 15% 33 $89.8 0 ‐ 75 $1,723.9 Software 88 21% 3,109.1 26% 40 2,110.0 4 352.0 44 647.1 Marketing Technology 85 20% 1,937.0 16% 38 489.9 2 446.5 45 1,000.6 Information & Business Services 50 12% 2,615.6 22% 30 1,953.4 6 550.0 14 112.2 Digital Advertising 30 7% 1,356.9 11% 11 31.3 1 ‐ 18 1,325.6 Technology & Communications 29 7% 1,297.4 11% 12 619.9 0 ‐ 17 677.5 Agency & Marketing Services 19 4% 4.9 0% 19 4.9 0 ‐ 0 ‐ Traditional Media 18 4% 13.4 0% 16 1.9 0 ‐ 2 11.5 Total 427 100% 12,148.0 100% 199 5,301.1 13 1,348.5 215 5,498.4 3| M&A and Investment Summary April 2014 M&A and Investment Summary for All Segments Transaction Distribution . Compared to the previous month aggregate reported value in April decreased 68 percent from March 2014, and increased 19 percent in deal volume from April 2013 . Strategic activity accounted for 44 percent of reported deal value during the month, and included: • Alibaba Group’s 72 percent stake purchase in China‐based digital mapping company AutoNavi, for $1.2 billion at a valuation of 12.1x revenue • WSP Global’s $366 million purchase of Canada‐based Focus, a provider of engineering services • Birch Communications’ $326 million purchase of information technology provider Cbeyond, at a valuation of 0.8x revenue and 4.9x EBITDA • IBM’s $270 million acquisition of Silverpop Systems, a provider of email marketing software and services, at a valuation of 3.4x revenue $90.0 $500.0 $81.5 $80.0 $70.0 Time $400.0 Warner $60.0 Cable/Co mcast $300.0 $50.0 $38.7 $40.0 $38.0 $200.0 Omnicom/ WhatsApp $30.0 /Facebook $20.2 $21.6 (1) Publicis $18.0 $18.4 $20.0 $14.7 $11.7 $12.4 $100.0 $7.5 $7.7 $8.4 $10.0 392 359 364 369 384 375 309 293 301 384 444 406 427 $‐ $- Apr‐13 May‐13 Jun‐13 Jul‐13 Aug‐13 Sep‐13 Oct‐13 Nov‐13 Dec‐13 Jan‐14 Feb‐14 Mar‐14 Apr‐14 (1) Aggregate totals for June 2013 do not include Vodafone’s $14 billion acquisition of Kabel Deutschland 4| M&A and Investment Summary April 2014 Selected Transactions with Valuation Information Disclosed ($ in Millions) Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Information & Business Services Oval Limited Credit/Risk Management Information Arthur J Gallagher & Co.$ 331.0 $ 165.6 $ 36.4 2.0x 9.1x Pixartprinting Srl Printing Services VistaPrint USA, Inc. 175.0 77.1 20.7 2.3x 8.5x Marketing Technology Silverpop Systems, Inc. Email/Messaging Software International Business Machines Corporatio 270.0 80.0 ‐ 3.4x NA Vocus, Inc. Email/Messaging Software GTCR, LLC 446.5 186.9 0.2 2.4x NMnm Software AutoNavi Holdings Limited Geo‐Demo Software Alibaba Group Holding Ltd. 1,717.0 141.7 (33.5) 12.1x NM Technology & Communications Cbeyond, Inc. Internet Service Providers Birch Communications, Inc. 350.5 463.4 71.0 0.8x 4.9x 5| M&A and Investment Summary April 2014 Securities in Registration ($ in Millions) Date Company Name Country Segment Offering Value Rev EBITDA Apr‐14 Cheetah Mobile Inc. China Software$ 174.0 $ 123.9 $ 19.2 Apr‐14 Goodman Networks, Inc. United States Software 100.0 931.7 19.6 Apr‐14 Imprivata Inc. United States Software 115.0 71.1 (4.0) Apr‐14 Mobile Iron, Inc. United States Software 100.0 108.0 (36.5) Apr‐14 TrueCar, Inc. United States Digital Advertising 125.0 134.0 (17.5) Apr‐14 Zendesk, Inc. United States Marketing Technology 150.0 83.2 (22.2) Apr‐14 Zoosk, Inc. United States Digital Media/Commerce 100.0 178.2 2.3 Mar‐14 Arista Networks United States Technology & Communications 200.0 361.2 71.9 Mar‐14 Box, Inc. United States Software 250.0 124.1 (142.5) Mar‐14 Globoforce Group plc Ireland Software NA NA NA Mar‐14 Sportsman's Warehouse Holdings, Inc. United States Digital Media/Commerce 201.3 643.2 74.2 Mar‐14 The Rubicon Project, Inc. United States Marketing Technology 101.6 83.8 (1.9) Mar‐14 TubeMogul Inc. United States Digital Advertising 75.0 57.2 (5.9) Jan‐14 JD.com China Digital Media/Commerce 1,500.0 NA NA Sep‐13 Midasplayer.com Ltd. (King.com) United Kingdom Digital Media/Commerce NA NA NA Jun‐12 goldenTech SA Switzerland Software 5.2 NA NA Apr‐12 BlackStratus, Inc. United States Software 20.0 9.2 (0.6) Apr‐12 NSFOCUS Information Technology Co., Ltd. China Technology & Communications NA NA NA Mar‐12 Reval Holdings, Inc. United States Software 75.0 47.0 (12.1) 6| M&A and Investment Summary April 2014 LTM IPO Performance (1/3) Initial Offering Final Price Stock Price at Close Stock Price on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Apr 30, 2014 1st Trading Day Apr‐14 NasdaqGM:FIVN Five9, Inc. United States $9.00‐$11.00 $7.00 $8.25, up 18% $7.13 (13.6%) Apr‐14 NYSE:GRUB GrubHub Inc. United States 23.00‐25.00 26.00 34.00, up 31% 30.95 (9.0%) Apr‐14 NYSE:IMS IMS Health Holdings, Inc. United States 18.00‐21.00 20.00 23.90, up 20% 23.74 (0.7%) Apr‐14 NYSE:PAYC Paycom Software, Inc. United States 18.00‐20.00 15.00 15.00, flat 15.41 2.7% Apr‐14 NasdaqGS:SPWH Sportsman's Warehouse Holdings, Inc. United States 11.00‐13.00 9.50 12.00, up 26% 10.53 (12.3%) Apr‐14 NYSE:RUBI The Rubicon Project, Inc. United States 15.00‐17.00 15.00 20.04, up 34% 14.37 (28.3%) Apr‐14 NasdaqGS:WB Weibo Corporation China 17.00‐19.00 17.00 20.24, up 19% 19.56 (3.4%) Mar‐14 NYSE:ATEN A10 Networks, Inc. United States 13.00‐15.00 15.00 16.21, up 8% 13.09 (19.2%) Mar‐14 NYSE:AMBR Amber Road, Inc. United States 10.50‐12.50 13.00 11.50, down 11% 13.32 15.8% Mar‐14 NYSE:HIVE Aerohive Networks, Inc. United States 9.00‐11.00 10.00 9.99, down 1% 10.37 3.8% Mar‐14 NasdaqGS:BRDR Borderfree, Inc. United States 14.00‐16.00 16.00 20.10, up 26% 14.99 (25.4%) Mar‐14 NYSE:CSLT Castlight Health, Inc. United States 13.00‐15.00 16.00 38.85, up 143% 15.02 (61.3%) Mar‐14 NYSE:CBSO CBS Outdoor Americas Inc. United States 26.00‐28.00 28.00 29.50, up 5% 29.30 (0.7%) Mar‐14 NYSE:COUP Coupons.com Incorporated United States 12.00‐14.00 16.00 30.00, up 88% 16.82 (43.9%) Mar‐14 NYSE:EVDY Everyday Health, Inc. United States 13.00‐15.00 14.00 14.50, flat 14.09 (2.8%) Mar‐14 NYSE:KING King Digital Entertainment plc United States 21.00‐24.00 22.50 19.00, down 15% 17.15 (5.1%) Mar‐14 NasdaqGS:PCTY Paylocity Holding Corpora ti on Uni ted States 14.00‐16.00 17.00 28.50, up 68% 18.91 (33.6%) Mar‐14 NYSE:QTWO Q2 Holdings, Inc.