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M&ASNAPSHOTQ1 2011
APRIL 2011
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M&ASNAPSHOT
OVERVIEW COMMENTARYM&A activity accelerated in Q1 2011 with a good overall tone.
M&A activity within the crucial $25 million - $1 billion transaction value rangein our sector was up 28% while median transaction size decreased slightly by7%. VC-backed company exits increased by 69% from the previous quarter.This quarters tone is shaped by large announced transactions includingAT&Ts $54b acquisition of T-Mobile, eBays $2.4b acquisition of GSICommerce and Qualcomms $3.6b acquisition of Atheros. These areimportant tone setters for the overall Internet | mobile | digital media M&A
market. These transactions illuminate the strategic importance of mobile data,e-commerce and Internet-connected devices.
Within the $25 million - $1 billion transaction value range, Google continues tolead the quarter with six acquisitions, three of which were done by Googlesbusiness unit, YouTube. Private companies Groupon, Facebook and Zyngaalso all remained active in this quarter.
We are also seeing an increase in M&A activity level in the Internet | mobile |digital media sectors from traditional IT vendors, as demonstrated byTeradata's purchase of Aster Data (after their acquisition of Aprimo lastquarter), Salesforces acquisition of Radian6 and Concurs acquisition of TripIt.We expect to see an increasing number of transactions where traditionalenterprise vendors tap into the value of consumer-based innovation andplatforms.
This past quarter, Architect Partners has published an M&A Alert on twentythree of the most important transactions in the quarter.
FOLLOWING ANALYSIS
M&ADASHBOARD:
NOTABLE ACQUIRERS:
M&ATRANSACTIONS:
OTHER NOTABLE TRANSACTIONS:
COMING SOON
ANALYSIS OF VC-BACKED M&AEXITS
SUMMARY OF QUARTERLY ACTIVITY INNUMBERS AND TONE
ACTIVE INFLUENTIAL BUYER ACTIVITY
SUMMARY OF TRANSACTIONS BETWEEN$25MM-$1B IN VALUE
SUMMARY OF NOTABLE TRANSACTIONS
WITHOUT ANNOUNCED VALUE ORABOVE $1B.
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M&ADASHBOARD
COVERAGEArchitect Partners tracks M&A activity within theconverging Internet | mobile | digital media sectors.
The following assessment is focused on M&A
transactions with announced values of between$25mm and $1B as these typically represent successfulbusiness-building endeavors.
MARKET TONEGood. Deepening base of acquirers.Transaction volume increases. Generally
balanced buyer/seller dynamics.
Note: 1) Includes all internet | mobile | digital media transactions regardless of transaction value.Transaction values within a range are presented as a mid-point value 3
M&A Exits (#)............................................................
Total Consideration Paid ($b)................... ...........
Venture-Backed M&A Exits (#)......................... ..
Median Transaction Size ($mm)............... ...........
U.S.-based Target (%)............................ .................
All Internet | Mobile | Digital Media M&A Exits(1)(#)....
2010
Q1 Q2 Q3 Q4
2009
Q1 Q2 Q3 Q4
41%48%
43%38%
45%
55%52%
49%
$6 $5
$12 $12
4146
53
68
38 40
68
53
$100
$146
$85
$128
$75
$100 $98 $105
2011
Q1
68
$14
12
17 18 16
75
10
18
48%
$6
$9$11
$14
27
!"#$$ !%#$$ !"&$!'($
!"#$
$98
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NOTABLEACQUIRERS
The following acquirers are generally active or influential buyers within the Internet | mobile | digital media sectors. Below,
we highlight announced acquisitions in the first quarter of 2011.
4
ACQUIRER # TARGET
3
3
3
3
2
2
2
2
2
2
2
2
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NOTABLEACQUIRERS (continued)
5
ACQUIRER # TARGET
2
1
1
1
1
1
1
1
1
1
1
1
1
Certain Assets
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#ANNOUNCED
DATE ACQUIRER TARGET
NON-SERVICE PROVIDER TRANSACTIONS1 03/25/2011 Apax Partners Trader Corporation
2 02/20/2011 CSR plc Zoran Corporation
3 02/09/2011 Vacaciones eDreams Opodo
4 03/16/2011 MediaTek Ralink Technology
5 03/23/2011 Walgreens Drugstore.com
6 01/18/2011 Golden Gate PrivateEquity
Conexant Systems
7 03/24/2011 Mood Media Muzak Holdings
8 03/18/2011 Broadcom Provigent
9 03/30/2011 Salesforce.com Radian6
10 01/13/2011 Vitruvian Partners OpenBet Technologies
11 02/01/2011 Time Warner NaviSite
12 02/06/2011 AOL HuffingtonPost
13 03/21/2011 Shutterfly Tiny Prints
14 02/09/2011 GSI Commerce Football Fanatics
15 03/02/2011 Teradata Aster Data
TRANSACTIONVALUE ($mm) TARGET DESCRIPTION
AP INSIGHTSMM&A ALERT VC-BACKED
$761 Online and print media publishing company, providing directories, informationalsites and advertising services to businesses and individuals.
$645 Develops SoC solutions for the digital entertainment and digital imaging devicessuch as HDTV, set top boxes, converter boxes, digital camera and video editingsystem.
$615 Provides online travel services such as flight booking, car hires, travel advice andinformation on destinations.
$440 Provides WLAN chipset solutions for wireless home networking and broadbandaccess devices.
$436 Online provider of pharmacy products.!
$391 SoC solutions for set-top-boxes, home automation, digital devices and securitysystems.
$375 Provides digital signage networks, equipment and professional sound systems.
$360 Provides SoC chip solutions to fixed wireless networks, private wireless networks,and cellular infrastructure markets. !
$350 Provides a social media monitoring platform for marketing, communications andcustomer support professionals. !
$330 Develops interactive solutions for betting and gaming operators in the U.K.
$321 Provides cloud-based enterprise hosting solutions.
$315 Online website that contains articles on varying subjects including local andnational news, analysis and lifestyle articles on topics such as religion, health,sports, food, travel and womens issues.
!
$306 Online retail of chic photo cards and personalized stationery. !
$277 Provides online team and league-licensed merchandises.!
$263 Offers a database management system with embedded analytics capabilityoptimized to support large-scale data-intensive applications where near-real-time analytics provide significant value. !
M&ATRANSACTIONS: $25MM-$1B
Below highlights M&A transactions that have announced values of between $25mm and $1b announced in Q1 2011 within theconverging Internet | mobile | digital media sectors.
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Note: Transaction values within a range are presented as a mid-point value
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# ANNOUNCEDDATE ACQUIRER TARGET TRANSACTIONV AL UE ( $m m ) TA R GE T D ES CR IP TI ON AP INSIGHTSM
M&A ALERT VC-BACKED16 02/14/2011 Eurovestech, INVESCO
Asset Management,
Verlinvest
Toluna
17 03/22/2011 Inventec Inventec Appliances
18 02/17/2011 Nordstrom HauteLook
19 02/09/2011 Visa PlaySpan
20 01/06/2011 Skype Technologies Qik
21 02/22/2011 Golden Gate Capital Tollgrade
Communications
22 03/12/2011 Motricity Adenyo
23 01/13/2011 Concur Technologies TripIt
24 01/20/2011 Amazon.com LOVEFiLM
25 01/04/2011 Helios, Adlevo InterSwitch
25 02/02/2011 AFCV Holdings Answers
26 03/23/2011 GP Investments Sascar Tecnologia ESegurana AutomotivaS/A
27 02/07/2011 Diversified Agency
Services
Communispace
28 03/04/2011 CBS Interactive Clicker Media
29 01/31/2011 AOL Europe GoViral
30 02/04/2011 Cisco Inlet Technologies
$258 Provides online panel and technology services to the market research industry.
$256 Manufactures wire and wireless communication products such as handhelddevices (including smartphones, MP3 players, GPS devices) and networkappliances products.
$225 Offers an online private flash sale site. HauteLooks members (invited byreferrals of other members or registration on the site) enjoy online discounted
sale events for a limited period of time.!
$190 Provides a virtual goods payment platform for applications including online
games, social networks, digital storefront and online videos. !
$136 Offers mobile video streaming services which allows video communication viamobile phones. !
$129 Develops and supports test systems and status monitoring hardware and
software products for DSL, POTS, broadband and IP networks.
$125 Offers a mobile marketing platform enabling marketers to develop, execute,monitor and analyze mobile marketing campaigns. !
$120 Offers online and mobile software that enables travelers to manage, organize andshare travel booked on over 1,000 sites. !
$115 Offers subscription-based online streaming services for movies, TV series and
games available for PC, Internet TV (LOVEFiLM supports Sony and SamsungSmart TVs), Sonys Playstation, Microsofts Xbox, Nintendos Wii and DS. !
$110 Offers e-commerce and e-billing transaction switching and payment processing
services.
$103 Provides answer-based search services to users primarily through its Web site,Answers.com. !
$101 Offers vehicle and cargo tracking using GSM/GPRS technology.
$100 Offers online focus group services allowing enterprises and brand marketers to
listen to customers insights and address customers needs and demandseffectively.
!
$100 An Internet TV portal, guide and search engine that claims to have the onlycomplete directory of TV, movies and web se ries available online. !
$97 Distributes digital content-based campaigns, allowing users to create an onlinepresence for brands, in the U.K. !
$95 Provides video encoding and live streaming technologies that support adaptivebit rate (ABR) delivery of video. !
M&ATRANSACTIONS: $25MM-$1B (continued)
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Note: Transaction values within a range are presented as a mid-point value
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# ANNOUNCEDDATE ACQUIRER TARGET TRANSACTIONVA LU E ($ mm ) TA RG ET D ES CR IP TIO N AP INSIGHTSM
M&A ALERT VC-BACKED31 03/22/2011 Finisar Ignis
32 02/10/2011 Dialog S emiconductor SiTel S emiconductor
33 01/25/2011 Orange DailyMotion
34 03/18/2011 Prime Rich Holdings Foxconn
35 03/04/2011 An unknown privateequity fund
iWeb Group
36 01/31/2011 Cavium Networks CelestialSemiconductor
37 03/08/2011 Google BeatThatQuote.com
38 01/18/2011 Adobe Demdex
39 01/19/2011 Ceragon Nera Networks
40 03/19/2011 Facebook Snaptu
41 02/27/2011 Vitruvian Partners Independent MediaDistribution
42 01/12/2011 Blackboard Presidium
43 02/02/2011 Match.com Humor Rainbow
44 03/23/2011 Polycom AccordentTechnologies
45 02/07/2011 HTC Saffron Media
$89 Develops fiber optical components for high-speed broadband networks.!
$87 Develops ICs for cordless communications and VoIP applications.
$80 Operates a YouTube-like video sharing website that allows users to search,discover, view, create, upload, download and share online videos. !
$70 Mobile handset manufacturer.
$65 Provides cloud-based enterprise hosting infrastructure solutions. Montreal-based.
$65 Provides SoC solutions for DTV, IPTV, Internet TV, and mobile media devices.
!
$61 Operates as a price comparison Web site in the U.K.!
$58 Offers SaaS-based software that captures, manages and analyzes behavioral dataderived by tracking consumer interactions with publishers websites and onlineadvertising campaigns.
!
$58 Develops fixed, wireless, and satellite communication equipment and systemssupporting mobile transmission networks, cellular base station transmission andwireless access solution for carriers.
$55 Creates rich mobile applications for feature phones. Snaptu has created featurephone-compatible applications for LinkedIn, Mashable, Twitter, Picasa, Facebookand ESPN Cricket. !
$54 Engages in content distribution business, including the digital delivery ofadvertisements and music videos to broadcasters.
$53 Provides online education services. Offers enrollment, financial aid andeducational technology services to 750 education institutions.
$50 Online dating Web site.
$50 Provides enterprise video management platform that allows Fortune 500organizations stream media presentations and implement enterprise webcasts.
$48 Provides mobile operators, handset OEMs and content owners a digital contentdelivery platform. Saffron offers a variety of products and services that allowspremium video content to be encoded in a variety of video formats, tagged andstored in a content library, retrieved on demand, security protected and streamedto a mobile device in a format optimized for that specific device.
M&ATRANSACTIONS: $25MM-$1B (continued)
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Note: Transaction values within a range are presented as a mid-point value
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M&ATRANSACTIONS: $25MM-$1B (continued)
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Note: Transaction values within a range are presented as a mid-point value
#ANNOUNCED
DATE ACQUIRER TARGETTRANSACTIONVALUE ($mm) TARGET DESCRIPTION
AP INSIGHTSMM&A ALERT VC-BACKED
46 02/07/2011 HTC Saffron Media
47 01/28/2011 KIT Digital KickApps
48 01/20/2011 Yahoo!7 Pty Ltd. Spreets Pty Ltd.
49 03/16/2011 KIT digital TXT Polymedia
50 02/15/2011 Autodesk Scaleform
51 02/28/2011 Lumison BlueSquare Data
52 01/18/2011 Rightnow Q-go.com
53 03/06/201 1 Sony Unite d Kingdom Hawk-Eye InnovationsLimited
54 01/06/2011 Salesforce Dimdim
55 03/27/2011 Michael Rubin (GSI
Commerce's CEO)
70% stake in
ShopRunner and RueLa La and 100% in
Licensed SportsMerchandise Business
56 01 /28/2011 Telit M otorola Is rae l, m2mModules Division
57 02/24/2011 Vocus North Social
$48 Provides mobile operators, handset OEMs and content owners a digital contentdelivery platform. Saffron offers a variety of products and services that allows
premium video content to be encoded in a variety of video formats, tagged andstored in a content library, retrieved on demand, security protected and streamed
to a mobile device in a format optimized for that specific device.
$45 Provides SaaS platform that hosts, manages, and delivers media and community
applications (including social networking, user-generated content, online videoand viral widget), allowing customers to manage monetization and audience
growth.!
$40 Offers daily deals on various things to do, see, eat and buy online in Australia.
$39 Offers software that allows network operators, broadcasters and contentproviders to manage and deliver video content over IP-based networks.
$36 Provides user interface (UI) development tools and middleware for a variety of
gaming platforms.
$36 Provides colocation, Internet hosting and server solutions that support enterprise
IP networks and data centers.
$34 Provides SaaS-based Website search solutions.!
$32 Provides sports tracking devices that enable replay and tracks movement in sportgames. U.K.-based.
$31 Develops web conferencing solutions.!
$31 ShopRunner.com and Rue LaLa.com are two invite-only shopping sites. Licensed
Sports Merchandise Business operates online retail for licensed sportsmerchandising. The transaction represents businesses that were divested from
GSI Commerce, as a part of eBay's acquisition of GSI Commerce.
$26 Develops and implements m2m applications and modules for wirelesstechnologies such as GSM, GPRS, CDMA and WCDMA.
$25 Develops Facebook application that allows users create, manage and promotetheir businesses on the popular social network.
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M&ATRANSACTIONS: $25MM-$1B (continued)
10
Note: Transaction values within a range are presented as a mid-point value
#ANNOUNCED
DATE ACQUIRER TARGET
BROADCAST SERVICE AND TELECOMMUNICATIONS SERVICE PROVIDER TRANSACTIONS1 02/01/2011 Dish Network DBSD North America
2 01/31/2011 Southern Cross Media
Group
Austereo Group
3 01/31/2011 Cumulus Media Cumulus MediaPartners
4 03/24/2011 Kapiri Investments TP EmiTel
5 01/19/2011 Hubbard Broadcasting BonnevilleInternational, 17 RadioStations
6 02/23/2011 Bragg Group Cable & WirelessBermuda
7 01/19/2011 LAP Green Network Sonitel
8 03/31/2011 Visafone
Communications
Multi-links, CDMA
Business
9 03/31/2011 Next-GenerationSatelliteCommunications
China UnifiednetHoldings
10 02/21/2011 Knology CobridgeCommunications,
Certain Cable andBroadband Operationsin Georgia and
Alabama
11 03/24/2011 Hyperion Telestar
TRANSACTIONVALUE ($mm) TARGET DESCRIPTION
AP INSIGHTSMM&A ALERT VC-BACKED
BROADCAST SERVICE AND TELECOMMUNICATIONS SERVICE PROVIDER TRANSACTIONS$1,000 Satellite-based voice, data, and Internet services.
$903 Offers commercial radio broadcasting in Australia.
$740 Operates radio broadcasting stations.
$599 Offers TV broadcast infrastructure for TV stations and studios in Poland.
$505 Radio broadcasting stations.
$70 Offers residental and business internet and telephone services in Bermuda.
$64 Provides integrated telecommunication services in Nigeria.
$52 Provides CDMA mobile operation services in Nigeria.
$39 Provides broadband satellite services in British Virgin Islands.
$30 Operates cable and broadband telecommunication services.
$27 Operates interactive TV channel iTV in Poland.
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A number of important transactions were announced in the first quarter of 2011 with consideration in excess of $1b.
M&ATRANSACTIONS: OTHER NOTABLE
#ANNOUNCED
DATE ACQUIRER TARGET
1 03/20/2011 ATT T-Mobile
2 01/05/2011 Qualcomm Atheros
3 03/27/2011 eBay GSI Commerce
TRANSACTIONVALUE ($mm) TARGET DESCRIPTION
AP INSIGHTSMM&A ALERT VC-BACKED
$54,854 Provides wireless voice, messaging, and data services
$3,581 Develops semiconductor chips that enable WiFi, Bluetooth, GPS and powerline-based connectivity for a variety of w ireless devices such as smartphone, tablets,notebooks, gaming devices, digital home networking and Internet routers.
$2,381 Provides e-commerce and interactive marketing services
Note: Transaction values within a range are presented as a mid-point value
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