Q2 2014 Internet & Digital Media Market Snapshot Alex Hart [email protected] Robert Berstein [email protected] www.signalhill.com Baltimore│Bangalore│Boston│Mumbai│Nashville│NewYork│Reston│San Francisco Frank Cordek [email protected]
Q2 2014 Internet & Digital Media Market
Snapshot
Alex Hart [email protected]
Robert Berstein [email protected]
www.signalhill.com
B a l t i m o r e │ B a n g a l o r e │ B o s t o n │ M u m b a i │ N a s h v i l l e │ N e w Y o r k │ R e s t o n │ S a n F r a n c i s c o
Frank Cordek [email protected]
2
Section I Public Company Universe and Trading Statistics 4
Section II Mergers and Acquisitions Activity 10
Section III Private Placement Activity 16
Section IV IPO Activity 21
Appendix A Signal Hill Investment Banking 27
Contents
3
13
1820
21
3132
0
5
10
15
20
25
30
35
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1 2014 Q2 2014 Q1 2014 Q2 2014 Q1 2014 Q2 2014
Internet Content &Services
e-Commerce Interactive Marketing &Marketing Services
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1.6x 1.7x
2.1x 2.3x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
Jun '13 Jun '14 Jun '13 Jun '14 Jun '13 Jun '14 Jun '13 Jun '14
Internet Content andServices
e-Commerce Interactive Marketing Marketing Services
EV
/ L
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Median Mean
22 21
6660
9894
0
20
40
60
80
100
120
$0
$6,000
$12,000
$18,000
$24,000
Q1 2014 Q2 2014 Q1 2014 Q2 2014 Q1 2014 Q2 2014
Internet Content &Services
e-Commerce Interactive Marketing &Marketing Services
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Public Company Trading Statistics1 M&A Activity
Private Placement Activity4 IPOs
$19.00
$9.00
$16.00 $17.00
$26.00
$15.00
$28.51
$14.78
$20.05 $20.48
$35.41
$12.84
$0
$10
$20
$30
$40
$50
JD TRUE SABR WB GRUB RUBI
Offer Price Current Price as of 6/30/14
Source: Signal Hill Database of Core IDM Deals – Information collected from multiple industry sources
(1) Includes CY ’14 Estimates and ’13 Actuals
(2) Includes only values for which data is publicly available
(3) Includes only targets with significant North American operations
(4) Includes only transactions $10 million or greater
Quarterly Summary
4
Section I: Public Company Universe and
Trading Statistics
5
Internet Content and Services e-Commerce Interactive Marketing Marketing
Services
Signal Hill’s IDM Public Company Universe
6
-20%
0%
20%
40%
60%
80%
100%
6/30/13 9/30/13 12/31/13 3/31/14 6/30/14
Signal Hill IDM Composite Internet Content and Services e-Commerce
Interactive Marketing Marketing Services S&P 500
LTM Sub-Sectors Performance vs. S&P 500
Source: Capital IQ
IDM Public Companies Stock Price Performance
7
($ in millions, except per share amounts) % Dec./Inc. Fully Fully Enterprise Value / (Price as of 6/30/13)
Price from LTM Diluted Diluted YoY Revenue Growth Revenue EBITDA Enterprise Value CY Revenues
Company 6/30/2014 High Low Eq. Val. Net Cash Ent. Val. CY '14E CY '15E LTM CY '14E CY '15E LTM CY '14E CY '15E Revenue EBITDA
Internet Content and Services
Google(1)
$584.67 (4.8%) 39.9% $391,190 $48,880 $342,310 10.3% 15.6% 5.5x 5.2x 4.5x 17.6x 13.0x 10.9x 4.7x 14.9x
Microsoft $41.70 (1.4%) 35.2% 344,459 64,192 280,267 14.5% 9.3% 3.4x 2.9x 2.7x 8.5x 8.6x 8.1x 3.0x 7.4x
Facebook $67.29 (7.3%) 178.6% 172,690 12,237 160,453 50.6% 31.3% 18.0x 13.5x 10.3x 29.1x 21.8x 16.4x 9.6x 40.4x
Yahoo! $35.13 (15.8%) 41.5% 35,369 1,715 33,654 (3.8%) 3.2% 7.2x 7.5x 7.2x 43.6x 24.6x 22.6x 4.9x 11.8x
Twitter $40.97 (45.2%) 38.8% 24,151 1,983 22,168 91.2% 60.2% 27.7x 17.4x 10.9x NM NM NM NA NA
LinkedIn $171.47 (33.4%) 26.1% 20,878 2,301 18,577 39.1% 33.2% 11.1x 8.7x 6.6x NM 35.4x 24.1x 17.0x NM
TripAdvisor $108.66 (2.3%) 82.5% 15,501 100 15,401 31.0% 24.9% 15.5x 12.4x 10.0x 46.0x 31.0x 24.1x 10.8x 26.9x
Yandex $35.64 (21.5%) 64.2% 11,455 141 11,313 19.7% 23.5% 9.4x 7.9x 6.4x 24.1x 18.8x 14.9x 8.8x 20.1x
King Digital $20.55 (3.9%) 34.7% 6,528 678 5,850 30.9% 14.7% 2.6x 2.4x 2.1x 7.2x 6.1x 5.5x NA NA
IAC/InterActiveCorp $69.23 (14.1%) 48.9% 5,749 (65) 5,814 6.1% 9.0% 1.9x 1.8x 1.7x 11.0x 9.7x 8.0x 1.5x 9.8x
Pandora $29.50 (27.1%) 68.2% 6,061 341 5,720 37.7% NA 6.0x 6.3x NA NM NM 42.3x 6.7x NM
Zillow $142.93 (1.8%) 162.8% 5,646 309 5,337 56.9% 35.2% 23.7x 17.2x 12.7x NM NM NM 13.1x NM
Yelp $76.68 (24.6%) 126.0% 5,495 399 5,096 57.2% 43.4% 19.4x 13.9x 9.7x NM NM 46.3x 13.7x NM
CoStar Group $158.17 (27.5%) 21.8% 5,020 75 4,945 28.7% 16.1% 10.8x 8.7x 7.5x 43.0x 28.4x 22.6x 9.6x NM
Weibo $20.48 (16.3%) 26.0% 4,039 (277) 4,316 71.1% 46.3% 18.8x 13.4x 9.2x NM NM NM NA NM
AOL $39.79 (25.3%) 23.6% 3,181 (34) 3,214 9.2% 7.6% 1.4x 1.3x 1.2x 7.4x 6.4x 5.9x 1.1x 5.1x
Zynga $3.21 (45.5%) 18.0% 2,839 782 2,057 (15.3%) 27.6% 2.6x 2.8x 2.2x NM 21.7x 13.1x 0.8x 7.2x
WebMD $48.30 (6.0%) 85.3% 1,823 (174) 1,997 11.9% 10.6% 3.7x 3.5x 3.1x 23.0x 12.8x 10.6x 2.6x 36.5x
Trulia $47.38 (10.1%) 79.8% 1,749 (9) 1,759 75.7% 30.9% 10.1x 7.0x 5.3x NM NM 36.0x 10.0x NM
TrueCar $14.78 (6.8%) 63.3% 1,050 38 1,012 43.2% 37.4% 6.6x 5.3x 3.8x NM NM 42.2x NA NM
Everyday Health $18.48 (7.1%) 56.1% 556 (216) 772 NA NA 4.7x NA NA NM 22.6x 17.2x NA NA
Monster Worldwide $6.54 (23.1%) 62.3% 595 (165) 761 (1.3%) 2.3% 1.0x 1.0x 0.9x 7.6x 6.4x 5.8x 0.7x 4.5x
Blucora $18.87 (37.4%) 13.3% 775 77 699 10.3% 8.7% 1.1x 1.1x 1.0x 6.2x 6.1x 5.5x 1.3x 7.1x
Angie's List $11.94 (57.8%) 24.4% 699 49 650 34.1% 24.8% 2.4x 2.0x 1.6x NM NM 17.4x 8.5x NM
eHealth $37.97 (40.0%) 70.1% 722 98 624 17.0% 19.6% 3.3x 3.0x 2.5x NM 33.4x 20.3x 2.0x 15.5x
Move $14.79 (19.4%) 56.2% 585 32 553 12.3% 13.6% 2.4x 2.2x 1.9x 49.0x 18.5x 13.7x 2.3x 28.5x
Dice Holdings $7.61 (22.8%) 17.1% 413 (103) 517 18.2% 4.8% 2.3x 2.0x 2.0x 8.2x 6.8x 6.4x 2.7x 7.8x
Chegg $7.04 (37.4%) 46.1% 585 94 491 23.5% 27.9% 1.8x 1.6x 1.2x 22.9x 7.4x 6.3x NA NA
Demand Media $4.82 (32.5%) 33.1% 418 61 357 (7.2%) 6.8% 0.9x 1.0x 0.9x 11.2x 7.5x 6.7x 1.0x 5.7x
Brightcove $10.54 (35.1%) 35.5% 338 20 318 17.3% 16.4% 2.7x 2.5x 2.1x NM NM 27.2x 2.4x NM
XO Group $12.22 (22.6%) 38.5% 329 75 253 6.0% 5.1% 1.9x 1.8x 1.7x 16.0x 14.6x 13.6x 1.7x 10.6x
Spark Networks $5.67 (37.3%) 33.1% 135 11 124 (4.2%) 12.8% 1.8x 1.9x 1.7x NM NM 40.1x 2.9x NM
United Online $10.40 (83.3%) 13.0% 147 67 80 (6.2%) 1.9% 0.3x 0.4x 0.4x 5.5x 2.6x 2.2x 0.9x 8.7x
Median 3.4x 3.0x 2.5x 16.0x 13.0x 14.3x 2.9x 10.2x
Mean 7.0x 5.6x 4.3x 20.4x 15.8x 17.9x 5.3x 14.9x
Statistics exclude companies with <$50m Enterprise Value
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 6/30/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
Internet Content and Services
8
($ in millions, except per share amounts) % Dec./Inc. Fully Fully Enterprise Value / (Price as of 6/30/13)
Price from LTM Diluted Diluted YoY Revenue Growth Revenue EBITDA Enterprise Value CY Revenues
Company 6/30/2014 High Low Eq. Val. Net Cash Ent. Val. CY '14E CY '15E LTM CY '14E CY '15E LTM CY '14E CY '15E Revenue EBITDA
e-Commerce
Amazon.com $324.78 (20.4%) 17.2% $149,453 $5,519 $143,934 22.0% 20.3% 1.8x 1.6x 1.3x 38.0x 22.0x 16.4x 1.9x 34.9x
eBay $50.06 (16.1%) 4.2% 63,443 3,716 59,727 13.7% 14.2% 3.6x 3.3x 2.9x 12.0x 9.8x 8.8x 4.3x 13.0x
The Priceline Group $1,203.00 (12.8%) 44.7% 63,076 4,855 58,220 24.6% 19.5% 8.2x 6.9x 5.8x 21.7x 17.2x 14.1x 7.1x 15.3x
JD.com $28.51 (3.7%) 43.0% 38,997 689 38,307 56.7% 55.6% 3.0x 2.1x 1.4x NM NM NM NA NM
Netflix $440.60 (3.8%) 107.8% 26,413 768 25,645 24.5% 21.9% 5.5x 4.7x 3.9x NM 41.9x 28.3x 3.2x 43.7x
Liberty Interactive $29.36 (4.3%) 33.8% 14,254 (9,958) 24,212 (5.1%) 1.9% 2.1x 2.3x 2.2x 12.0x 12.1x 11.7x 2.2x 11.5x
Expedia $78.76 (3.7%) 72.4% 10,226 320 9,906 18.3% 12.9% 2.0x 1.8x 1.6x 15.2x 9.9x 8.7x 1.8x 11.8x
Sabre $20.05 (4.1%) 33.7% 5,304 (4,077) 9,380 (1.6%) 5.3% 3.1x 3.1x 3.0x 15.3x 11.1x 10.0x NA NA
Live Nation $24.69 (0.4%) 59.0% 4,955 (418) 5,373 11.3% (0.0%) 0.8x 0.7x 0.7x 10.5x 9.6x 8.6x 0.6x 7.6x
zulily $40.95 (44.3%) 42.4% 5,084 309 4,775 72.5% 45.9% 5.9x 4.0x 2.7x NM NM 40.9x NA NA
Copart $35.96 (4.2%) 18.4% 4,533 (188) 4,720 8.9% 7.6% 4.1x 3.9x 3.6x 12.6x 11.5x 10.2x 4.1x 12.1x
Mercadolibre $95.40 (34.7%) 20.0% 4,212 205 4,007 1.2% 19.4% 8.3x 8.4x 7.0x 23.3x 26.3x 21.7x 11.6x 27.6x
Groupon $6.62 (48.1%) 27.8% 4,516 1,041 3,475 24.3% 14.4% 1.3x 1.1x 0.9x 29.5x 11.8x 8.7x 1.9x 32.1x
HomeAway $34.82 (28.8%) 27.7% 3,256 457 2,799 27.3% 19.8% 7.5x 6.3x 5.3x 46.5x 23.5x 19.0x 8.2x 41.1x
GrubHub $35.41 (13.2%) 18.6% 2,790 113 2,678 69.2% 25.3% 15.8x 11.5x 9.2x NM 41.7x 31.5x NA NM
Coupons.com $26.31 (20.3%) 69.1% 2,040 198 1,842 32.2% 32.3% 10.1x 8.3x 6.3x NM NM 40.0x NA NA
Shutterfly $43.06 (28.1%) 18.6% 1,659 91 1,568 16.8% 15.4% 1.9x 1.7x 1.5x 20.0x 9.2x 7.2x 2.9x 22.7x
Vistaprint $40.46 (30.5%) 7.9% 1,347 (150) 1,497 10.6% 7.8% 1.2x 1.1x 1.0x 11.2x 7.9x 7.4x 1.6x 13.0x
RetailMeNot $26.61 (45.4%) 18.5% 1,429 157 1,273 34.2% 25.0% 5.5x 4.5x 3.6x 17.9x 12.8x 9.4x NA NA
Orbitz $8.90 (32.9%) 39.1% 971 (192) 1,163 8.0% 5.0% 1.4x 1.3x 1.2x 9.1x 7.5x 6.7x 1.4x 9.3x
Stamps.com $33.69 (31.8%) 24.0% 545 90 455 6.0% 7.9% 3.5x 3.4x 3.1x 12.5x 10.9x 10.0x 4.7x 15.3x
Liquidity Services $15.76 (58.9%) 30.8% 506 102 404 (0.5%) (2.3%) 0.8x 0.8x 0.8x 5.4x 5.3x 7.3x 2.1x 11.8x
1-800-Flowers.com $5.80 (19.1%) 28.0% 372 (2) 374 3.6% 4.4% 0.5x 0.5x 0.5x 9.6x 7.4x 6.2x 0.5x 8.5x
Blue Nile $28.00 (43.0%) 2.0% 339 56 283 9.1% 9.5% 0.6x 0.6x 0.5x 17.2x 11.1x 9.6x 1.0x 27.0x
Overstock.com $15.77 (55.7%) 9.1% 378 111 268 8.5% 3.3% 0.2x 0.2x 0.2x 12.9x 7.3x 6.3x 0.5x 25.9x
Digital River $15.43 (24.0%) 5.0% 504 257 247 (3.0%) 6.2% 0.7x 0.7x 0.6x 8.3x 5.4x 4.3x 0.8x 9.6x
PetMed Express $13.48 (24.1%) 11.1% 272 34 238 (0.3%) 2.4% 1.0x 1.0x 1.0x 8.1x 8.0x 7.4x 1.0x 7.4x
Travelzoo $19.35 (43.0%) 13.6% 285 61 224 (1.5%) 6.1% 1.4x 1.4x 1.4x 9.0x 8.1x 7.2x 2.3x 13.0x
Vitacost.com $6.26 (33.4%) 22.5% 213 29 184 11.6% 19.2% 0.5x 0.4x 0.4x NM NM 28.5x 0.7x NM
CafePress $5.17 (30.8%) 3.8% 89 20 69 1.4% 8.0% 0.3x 0.3x 0.3x 14.3x 7.9x 6.4x 0.4x 16.1x
Median 2.0x 1.7x 1.4x 12.8x 10.4x 9.4x 1.9x 13.0x
Mean 3.4x 2.9x 2.5x 16.3x 13.7x 13.9x 2.8x 18.7x
Statistics exclude companies with <$50m Enterprise Value.
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 6/30/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
e-Commerce
9
($ in millions, except per share amounts) % Dec./Inc. Fully Fully Enterprise Value / (Price as of 6/30/13)
Price from LTM Diluted Diluted YoY Revenue Growth Revenue EBITDA Enterprise Value CY Revenues
Company 6/30/2014 High Low Eq. Val. Net Cash Ent. Val. CY '14E CY '15E LTM CY '14E CY '15E LTM CY '14E CY '15E Revenue EBITDA
Interactive Marketing
Endurance International $15.29 (6.4%) 46.9% $1,974 ($1,025) $2,999 21.0% 15.4% 5.5x 4.8x 4.1x 43.2x 13.9x 10.9x NA NA
Web.com $28.87 (23.5%) 16.3% 1,490 (544) 2,034 21.2% 11.1% 4.0x 3.4x 3.1x 20.7x 11.8x 10.3x 4.4x 21.9x
Bankrate $17.54 (24.2%) 24.3% 1,837 (53) 1,890 19.7% 11.6% 3.9x 3.5x 3.1x 16.5x 12.8x 10.9x 3.5x 14.2x
Conversant $25.40 (11.8%) 36.4% 1,702 30 1,671 7.7% 8.1% 2.9x 2.7x 2.5x 8.2x 7.9x 7.1x 2.7x 8.9x
Criteo $33.77 (44.6%) 34.2% 1,948 317 1,631 50.1% 35.5% 2.4x 1.8x 1.3x 38.2x 24.3x 13.2x NA NA
comScore $35.48 (2.1%) 45.9% 1,237 29 1,208 13.1% 15.2% 4.1x 3.7x 3.2x 47.8x 18.8x 14.9x 3.1x 31.0x
Rocket Fuel $31.09 (56.8%) 61.0% 1,093 189 904 75.4% 57.1% 3.3x 2.1x 1.4x NM NM 24.3x NA NM
Constant Contact $32.11 (2.4%) 99.7% 1,008 131 877 15.8% 13.7% 3.0x 2.7x 2.3x 28.8x 14.5x 11.7x 1.5x 14.8x
Wix.com $19.84 (39.3%) 38.9% 747 100 647 65.0% 41.0% 6.9x 4.9x 3.5x NM NM NM NA NA
ChannelAdvisor $26.36 (47.2%) 73.9% 648 94 554 26.2% 27.5% 7.7x 6.5x 5.1x NM NM NM NA NA
The Rubicon Project $12.84 (44.7%) 15.2% 460 (37) 497 35.0% 31.6% 5.5x 4.4x 3.3x NM NM NM NA NA
Marchex $12.02 (6.4%) 121.3% 509 39 470 22.6% 9.8% 2.8x 2.5x 2.3x NM 32.3x 26.3x 1.5x 31.9x
Millennial Media $4.99 (52.4%) 72.1% 534 98 436 27.0% 17.7% 1.5x 1.3x 1.1x NM NM 17.3x 2.9x NM
Blinkx $1.09 (72.9%) 9.0% 435 130 304 44.9% 17.1% 1.2x 1.1x 0.9x 9.8x 6.5x 5.1x 2.8x 17.3x
Care.com $12.66 (56.7%) 32.4% 392 119 274 35.4% 31.6% 3.1x 2.5x 1.9x NM NM NM NA NA
TechTarget $8.82 (2.0%) 104.6% 288 29 260 15.8% 16.8% 2.8x 2.5x 2.2x 39.1x 15.6x 10.2x 1.5x 37.1x
Tree.com $29.14 (16.9%) 76.2% 330 89 240 17.5% 7.1% 1.6x 1.5x 1.4x 23.7x 11.5x 9.0x 1.3x 12.0x
Sizmek(1)
$9.53 (28.1%) 13.5% 290 83 207 14.4% 13.1% 1.2x 1.1x 1.0x 10.2x 8.8x 6.3x NA NM
QuinStreet $5.51 (43.3%) 8.0% 241 39 203 (5.7%) 3.8% 0.7x 0.7x 0.7x 9.6x 7.8x 7.0x 1.1x 13.3x
Tremor Video $4.72 (57.4%) 31.5% 238 87 150 22.5% 24.7% 1.1x 0.9x 0.7x NM NM NM NA NA
YuMe $5.90 (51.2%) 25.0% 191 50 141 28.2% 26.3% 0.9x 0.7x 0.6x NM 38.8x 10.0x NA NA
ReachLocal $7.03 (51.3%) 19.8% 203 74 129 (1.5%) 9.1% 0.2x 0.3x 0.2x 27.8x 48.0x 5.3x 0.5x 19.8x
Median 2.8x 2.5x 2.0x 23.7x 13.9x 10.3x 2.1x 17.3x
Mean 3.0x 2.5x 2.1x 24.9x 18.2x 11.8x 2.2x 20.2x
($ in millions, except per share amounts) % Dec./Inc. Fully Fully Enterprise Value / (Price as of 6/30/13)
Price from LTM Diluted Diluted YoY Revenue Growth Revenue EBITDA Enterprise Value CY Revenues
Company 6/30/2014 High Low Eq. Val. Net Cash Ent. Val. CY '14E CY '15E LTM CY '14E CY '15E LTM CY '14E CY '15E Revenue EBITDA
Marketing Services
WPP $21.79 (18.6%) 13.4% 28,224 (4,276) 32,501 3.3% 6.2% 1.7x 1.7x 1.6x 10.7x 9.8x 9.2x 1.8x 9.3x
Alliance Data Systems $281.25 (6.4%) 64.2% 15,246 (9,443) 24,689 22.1% 10.2% 5.5x 4.7x 4.2x 18.6x 15.8x 14.1x 4.5x 13.5x
Nielsen $48.41 (0.5%) 49.4% 18,371 (6,438) 24,809 11.5% 5.2% 4.2x 3.9x 3.7x 17.9x 13.3x 12.3x 3.3x 13.9x
Experian $16.90 (22.5%) 2.7% 16,750 (4,090) 20,840 2.3% 11.5% 4.2x 4.3x 3.9x 12.4x 11.8x 11.0x 4.3x 12.7x
Publicis $84.80 (12.0%) 13.1% 17,680 738 16,943 3.5% 5.5% 1.8x 1.7x 1.6x 9.4x 9.2x 8.6x 1.6x 7.6x
Dentsu $40.73 (5.7%) 36.1% 11,742 (1,375) 13,117 13.6% 2.7% 0.6x 0.6x 0.5x 10.5x 10.3x 9.3x 0.5x 13.3x
Equifax $72.54 (1.2%) 23.5% 8,852 (1,573) 10,425 6.4% 7.7% 4.5x 4.3x 3.9x 12.5x 12.2x 11.2x 3.9x 10.7x
Interpublic Group $19.51 (1.3%) 33.7% 8,265 (1,161) 9,426 4.7% 4.6% 1.3x 1.3x 1.2x 10.8x 9.8x 8.7x 1.0x 8.9x
Havas $8.21 (6.2%) 23.6% 3,366 (286) 3,652 1.7% 3.9% 1.5x 1.5x 1.4x 9.9x 9.1x 8.5x 1.2x 7.2x
Acxiom $21.69 (44.8%) 6.8% 1,671 101 1,570 (5.0%) 3.7% 1.4x 1.5x 1.5x 7.9x 7.3x 7.0x 1.6x 9.4x
MDC Partners $21.40 (21.4%) 83.1% 1,059 (979) 2,038 9.7% 7.4% 1.7x 1.6x 1.5x NM 11.1x 10.0x 1.1x NM
Harte-Hanks $7.19 (29.0%) 8.6% 451 (10) 462 1.2% 3.5% 0.8x 0.8x 0.8x 7.7x 6.7x 6.5x 0.8x 9.2x
Median 1.7x 1.7x 1.6x 10.7x 10.0x 9.2x 1.6x 9.4x
Mean 2.4x 2.3x 2.2x 11.7x 10.5x 9.7x 2.1x 10.5x
(1) Represents Digital Generation’s online advertising assets after spin-off
Statistics exclude companies with <$50m Enterprise Value
EBITDA multiples >50 excluded
All estimates from Capital IQ and calendarized unless otherwise noted (as of 6/30/14)
Enterprise Value calculated as Equity Value plus total debt, minority interest and preferred stock, less cash and equivalents
Interactive Marketing & Marketing Services
10
Section II: Mergers and Acquisitions Activity
11
06/30/14 TapCommerce provides mobile marketing customer engagement
and retargeting services, and related mobile advertising bidding
exchange access
Offers mobile app marketers more robust capabilities for
app re-engagement and service solutions for real-time
programmatic buying and better measurement abilities
$100.0 NA NA
06/26/14 Acceller provides online consumer content syndication services and
SaaS to enable advertisers to post marketing content on comparison
shopping directories
Creates the leading customer acquisition and retention
platform, differentiated by its ability to deliver products
and services at a scale not yet seen in the marketplace
NA NA NA
06/24/14 AdColony provides mobile video advertising and application
monetization software development kit (SDK) to enable video ad
placement in mobile applications
Strengthens Opera as global leader in mobile advertising,
with a combined audience reach north of 700 million
consumers
$75.0 1.4x 9.5x
06/23/14 MICROS provides point-of-sale (POS) systems, e-Commerce and
transaction processing software for the retail, hospitality,
entertainment and gaming sectors globally
Expands sales of Oracle's marketing, ERP and HCM
software by leveraging MICROS' relationships in the
restaurant and hotel industries
$4,641.0 3.5x 18.1x
06/20/14 Dropcam provides WiFi-enabled home security digital video
equipment and related home monitoring SaaS and mobile application
for consumers
Reflects Nest Lab's ambitions to own the home
automation market in the face of increasing competition
from Honeywell and others
$555.0 NA NA
06/16/14 ShipStation provides e-Commerce, order fulfillment and shipping
automation SaaS to enable businesses to collect and manage orders
from a range of online marketplaces
Offers multi-carrier shipping options, and automation
features like custom hierarchical rules and product
profiles that allow customers to optimize their shipping
$50.0 NA NA
06/13/14 OpenTable provides restaurant reservation and management
software for restaurants
Allows Priceline to leverage its international presence to
expand OpenTable's overseas business as well as
provides cross-marketing opportunities
$2,482.4 12.5x 52.4x
06/10/14 Adconion Direct provides online cross-channel advertising (mobile,
web, video, email and social media), SEO and related marketing
analytics SaaS for marketers and businesses
Brings Amobee the ability to send targeted ads to
individuals across different ad channels (mobile, video,
display, social, etc.)
$235.0 1.3x NA
06/10/14 Kontera provides online and social media content analytics and data
aggregation SaaS that measures consumer trends, to enable
targeted advertising for marketers and businesses
Offers Amobee technology that improves contextual
understanding of where and how ads are placed on the
Web and mobile devices
$150.0 5.8x NA
06/04/14 emedia provides business-to-business (B2B) marketing content and
advertising services
Combines B2B units of each company which combined
will feature an email database of over 20 million
NA NA NA
06/09/14 Viacom's gaming assets includes Addicting Games, GameTrailers
and Shockwave found online through www.addictinggames.com and
at other destinations
Deepens DEFY's gaming and entertainment portfolio,
which now includes GameTrailers, SMOSH Games,
award-winning The Escapist, and Gamefront
NA NA NA
06/03/14 Internet Brands operates a network of auto, health, travel, money,
home, business and shopping community, e-Commerce and
informational websites for consumers and businesses globally
Strengthens Internet Brands transition from a portfolio of
web assets to a vertically integrated provider of media
and client software solutions
$1,100.0 NA NA
06/02/14 Cozi provides a free mobile application to schedule family-oriented
events for consumers
Provides Time Inc. a new product development hub as
well as a foothold in the rapidly growing productivity
category
NA NA NA
05/28/14 Beats Electronics provides headphones, earbuds, speakers and
related accessories for consumers
Extends Apple's music lineup, from free streaming with
iTunes Radio to a world-class subscription service in
Beats, and of course buying music from the iTunes Store
$3,000.0 NA NA
5/27/2014 (2) Check provides mobile bill payment software enabling users to
monitor bank accounts and set up automatic payments for utilities,
mortgages and other recurring bills
Offers Intuit a critical consumer payments capability that
will allow the company to streamline interactions between
consumer and small business customers
$360.0 24.0x NA
/
($ in millions) Enterprise Value
Target Business Acquirer Enterprise LTM LTMDate Acquirer Target Description Rationale Value
(1) Revenue EBITDA
Source: Signal Hill Database
Q2 2014 Notable Internet & Digital Media M&A Activity
12
($ in millions) Enterprise Value
Target Business Acquirer Enterprise LTM LTMDate Acquirer Target Description Rationale Value
(1) Revenue EBITDA
Source: Signal Hill Database
Q2 2014 Notable Internet & Digital Media M&A Activity
05/07/14 Caring.com provides an online information, review and directory
information for seniors' caregivers
Enhances Bankrate's ability to attract an audience of
family caregivers through its editorial content, robust tools
and professionally trained senior living advisors
$57.0 NA NA
05/06/14 Convertro provides marketing campaign measurement SaaS that
identifies which marketing campaigns result in sales conversions
Provides AOL software to sell advertising on its Web
properties and partners' websites by giving marketers
software to analyze the effectiveness of those ads
$89.0 8.1x NA
05/06/14 LaFourchette provides online flight, hotel and vacation home
reservation services for consumers globally through a network of
websites
Brings TripAdvisor into the global restaurant reservation
market and adds a bit of spice to its typical travel
information/reservation purchase
NA NA NA
05/06/14 Adometry provides online advertising analytics and customer
analytics SaaS for businesses and advertisers
Improves the performance of Google's marketing
campaigns as the company faces a slowdown in part of
its ad business
$150.0 7.5x NA
05/05/14 PNI Digital Media provides consumer product personalization SaaS
that enables retailers to design and sell customized photo prints and
gifts online, in stores and via consumer-facing kiosks
Provides Staples' customers easy access to personalized
products and related services
$67.0 2.9x NA
04/10/14 Iconology provides a website for viewing, rating and reviewing comic
books and graphic novels from publishers and independent creators
for consumers and businesses
Brings comiXology's Guided View technology for reading
comics and graphic novels to even more readers through
Amazon's customer base
NA NA NA
04/08/14 PowerReviews provides an online community management and
moderation service that enables online retailers to add customer-
generated product reviews, recommendations and opinions
Adds a fellow consumer rating technology provider for a
fraction of the $152m that Bazaarvoice originally paid for
PowerReviews due to pressure from anitrust regulators
$30.0 1.8x 3.4x
04/07/14 Vocus provides public relations management and business
intelligence (BI) software as a service (SaaS) for businesses
Extends GTCR into the pricey marketing software
industry with a value play
$413.1 2.2x NM
04/02/14 Mass Relevance provides social media analytics, customer
engagement and marketing automation SaaS to enable media and
advertising agencies to monitor various social media outlets
Offers both brands the ability to stay on top of market
trends, and be smarter about how to engage customers in
social experiences that build lasting relationships
NA NA NA
(1) Transaction value used as proxy where enterprise value not available
(2) Target operating metrics based on either analyst or research estimates
13
2014: Appurify (mobile application testing SaaS)
2014: Dropcam (security camera systems provider)
2014: mDialog (video stream advertising SaaS)
2014: Skybox Imaging (camera & imaging specific satellite)
2014: Appetas (restaurant website design SaaS)
2014: Adometry (online advertising analytics SaaS)
2014: Quest Visual (mobile language translation application)
2014: Nest Labs (smart thermostat systems provider)
Deals (number) over trailing four quarters: 34
Deals (value disclosed)2 over trailing four quarters: $4,535mm
2014: Pryte (mobile application distribution SaaS)
2014: Moves (mobile fitness application)
2014: Oculus VR (virtual reality gaming headsets)
2014: WhatsApp (mobile messaging applications)
2014: Branch Media (online social conversation service)
2013: SportStream (sports media monitoring SaaS)
2013: Onavo (consumer-focused data management application
provider and web analytics SaaS)
Deals (number) over trailing four quarters: 14
Deals (value disclosed)2 over trailing four quarters: $21,000mm
2014: Blink (time-sensitive mobile messaging application)
2014: Vizify (personal website construction software)
2014: Wander (visual diary mobile application)
2014: Incredible Labs (predictive personal assistant application)
2014: Anchor (team communication mobile applications)
2014: Cloud Party (browser-based virtual video games)
2014: Aviate (behavior-based recommendation application)
Deals (number) over trailing four quarters: 27
Deals (value disclosed)2 over trailing four quarters: NA
Select Recent Acquisitions Number of Acquisitions1
Source: 451 Research
(1) Includes only deals that were publicly announced, may not include acquisitions of intangible assets and smaller
acquisitions that were not announced
(2) Includes values for only publicly disclosed deal values
Leading Acquirer Activity
2733
1620
712
0
10
20
30
40
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
11 12
16
11
4 3
0
5
10
15
20
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
5 4 2
30
8
10
10
20
30
40
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
14
2014: Iconology (online comic enthusiast website)
2014: Double Helix Games (video game software developer)
2013: GoPago (tablet-based POS systems technology)
2013: TenMarks (online math instruction services)
2013: Liquavista (electrowetting color video display provider)
2013: Evi Technologies (mobile speech recognition software)
2013: Goodreads (literature social networking website) Deals (number) over trailing four quarters: 4
Deals (value disclosed)2 over trailing four quarters: NA
2014: Applications Technology (machine translation software)
2014: PhiSix (3D apparel simulation software)
2013: Shutl (online delivery service)
2013: Bureau of Trade (online product aggregation and daily
deal recommendation service)
2013: Braintree Payment Solutions (online and mobile payment
APIs)
2013: Decide.com (online price-prediction shopping service) Deals (number) over trailing four quarters: 9
Deals (value disclosed)2 over trailing four quarters: $800mm
2014: DC Storm (digital advertising analytics software)
2014: Viber Media (mobile messaging and VoIP application)
2013: Viki (crowdsourced subtitled online video content provider)
2013: PopShops.com (retail product and online coupon
aggregation service)
2013: Webgistix (e-Commerce order management SaaS)
2012: ADS e-Commerce Logistics (e-Commerce logistic and
fulfillment services)
2012: Wuaki.tv (Spanish movie and TV show streaming website)
Deals (number) over trailing four quarters: 4
Deals (value disclosed)2 over trailing four quarters: $900mm
Select Recent Acquisitions Number of Acquisitions1
Leading Acquirer Activity
Source: 451 Research
(1) Includes only deals that were publicly announced, may not include acquisitions of intangible assets and smaller
acquisitions that were not announced
(2) Includes values for only publicly disclosed deal values
5
7
1
6
1 1
0
2
4
6
8
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
5
11
3
9
1 1
0
5
10
15
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
2
45
3
1 1
0
2
4
6
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
15
Select Recent Acquisitions Number of Acquisitions1
2014: Capptain (mobile application analytics)
2014: GreenButton (cloud middleware software for HPC)
2014: Junction Solutions [JunctionMCR divison] (Microsoft-
based retail software division
2014: Parature (customer service automation SaaS)
2013: Nokia [devices and services] (smartphone, patent license
and mapping services of Nokia)
2013: Blue Horseshoe [assets] (warehouse and transportation
SCM software)
Deals (number) over trailing four quarters: 10
Deals (value disclosed)2 over trailing four quarters: $5,010mm
2014: MICROS Systems (PoS software provider)
2014: LiveLOOK (CRM co-browsing & live chat application)
2014: GreenBytes (VDI storage optimization appliances)
2014: BlueKai (data management and analytics SaaS)
2013: Responsys (email marketing SaaS provider)
2013: Bitzer Mobile (mobile enterprise management software)
2013: BigMachines (CPQ sales automation SaaS)
2013: Compendium (multi-channel content marketing SaaS)
Deals (number) over trailing four quarters: 9
Deals (value disclosed)2 over trailing four quarters: $7,763mm
2013: Cloudconnect.com (database integration and
synchronization SaaS)
2013: EdgeSpring (business intelligence data analytics software)
2013: ExactTarget (marketing automation SaaS provider)
2013: Clipboard (online social bookmarking services )
2013: EntropySoft (content integration SaaS and systems)
2012: BlueTail (data mining software provider)
2012: GoInstant and Thinkfuse (team collaboration SaaS)
Deals (number) over trailing four quarters: 2
Deals (value disclosed)2 over trailing four quarters: $3,900mm
Leading Acquirer Activity
Source: 451 Research
(1) Includes only deals that were publicly announced, may not include acquisitions of intangible assets and smaller
acquisitions that were not announced
(2) Includes values for only publicly disclosed deal values
2
89
8
32
0
5
10
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
10 911
7
2 3
0
5
10
15
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
6
8
65
0 00
5
10
2010 2011 2012 2013 Q1 2014 Q2 2014
Number of Acquisitions
16
Section III: Private Placement Activity
17
06/30/14 Yik Yak Yik Yak develops and delivers Yik Yak, a social messaging application for hyper-local engagement on
iOS and Android devices.
DCM; Azure Capital Partners; Renren; Tim Draper $10.0
06/28/14 Chloe + Isabel Chloe + Isabel operates an online shop for hand-crafted jewelry for women. It offers necklaces,
bracelets, earrings, and rings.
Softbank Capital; General Catalyst Partners; First Round
Capital; Forerunner Ventures; Floodgate Fund
$15.0
06/27/14 Fingerprint Fingerprint develops mobile learning and play games for kids and grown-ups. DreamWorks Animation $10.9
06/27/14 IgnitionOne IgnitionOne provides cloud-based digital marketing solutions for online marketers worldwide. ABS Capital Partners; Brown Savano; SoftBank Capital $20.0
06/26/14 Sport Ngin Sport Ngin designs and develops web and mobile-based software solutions for youth, amateur and
professional sports organizations.
Causeway Media Partners; ICON Venture Partners $25.0
06/26/14 TasteMade TasteMade, a media company, produces and delivers programs for international community of food
lovers.
Comcast Ventures; Raine Ventures; Redpoint Ventures;
Scripps Network Interactive
$25.0
06/26/14 Wickr Wickr provides a mobile communication application that provides military-grade encryption of text,
picture, audio and video messages.
Breyer Capital; CME Group; Juniper Networks, Investment
Arm; Knight Foundation, Investment Arm; Wargaming.net
$30.0
06/24/14 RelayRides RelayRides engages in neighbor-to-neighbor car sharing business in the United States. August Capital; Canaan Partners; Google Ventures; Shasta
Ventures
$25.0
06/19/14 TouchofModern Whitehawk Ventures, doing business as TouchOfModern, owns and operates a design-oriented flash
sales site.
Great Oaks Venture Capital; Lucas Venture Group; Partech
Ventures; Silicon Valley Bank; Floodgate; Hillsven Capital
$14.0
06/13/14 VigLink VigLink provides a solution to affiliate links on the web. Its solution enables publishers to automatically
affiliate the links in user’s content to get paid when their readers click or purchase.
Correlation Ventures; Emergence Capital Partners; First
Round Capital; Google Ventures; RRE Ventures
$18.0
06/12/14 Webtrekk Webtrekk develops web analytics and website optimization solutions for enterprises worldwide. DPE Deutsche Private Equity $33.9
06/12/14 SiSense SiSense provides data analytics and business intelligence solutions. Battery Ventures; Draper Fisher Jurvetson; Genesis Partners;
Opus Capital
$30.0
06/09/14 Placed Placed provides location-driven insights and mobile advertising intelligence. Madrona Venture Group; Two Sigma Ventures $12.6
06/09/14 Washio Wash.io develops web-based service for eco-friendly laundry and dry cleaning services. Canaan Partners; Grade-A Investments; Pejman Mar
Ventures; Sherpa Ventures
$10.5
06/09/14 About.me About.me provides an online service that allows users to create and manage their own identity on the
web.
Bullpen Capital; CrunchFund; Foundry Group; Google
Ventures; SoftTech VC; True Ventures
$11.0
06/06/14 Handybook Handybook provides cleaning, handyman, and general labor services for households. General Catalyst Partners; Highland Capital Partners;
Revolution Growth
$30.0
06/06/14 Uber Uber offers online car booking services via mobile phones. BlackRock; Fidelity Investments; Google Ventures; Kleiner
Perkins Caufield & Byers; Menlo Ventures; Summit Partners
$1,400.0
06/05/14 Yieldbot Yieldbot predictive and actionable data intelligence company, leverages publisher site data using visitor
referrer data and site click stream data.
SJF; RRE Ventures; New Atlantic Ventures; Common Angels;
City National Bank
$18.0
06/03/14 Offerpop Offerpop operates a fan marketing platform for Facebook and Twitter. CommonAngels; Edison Venture Fund; Hearst Ventures;
Mesco; Salesforce.com; Windcrest Partners
$15.0
Source: Signal Hill Database
Includes transactions $10 million or greater
Q2 2014 Select IDM Private Placements ($ in millions)
Announced Investment
Date Target Description of Target Company Investors Size
18
06/02/14 MediaMath MediaMath develops marketing operating systems. Akamai Technologies; Catalyst Investors; Observatory Capital
Management; Safeguard Scientifics; Spring Lake
$100.0
06/04/14 Yext Yext operates as a local advertising technology company. Insight Venture; Sutter Hill Ventures; Institutional Venture
Partners
$50.0
06/04/14 Kobalt Music Group Kobalt Music Group operates as a music publisher. Balderton Capital; MSD Capital $140.0
06/03/14 Invaluable Invaluable provides marketing and e-Commerce services. Ascent Venture Partners; Commonwealth Capital Ventures;
Insight Venture Partners
$33.8
05/30/14 Hipmunk Hipmunk operates as a travel search site. Its interface enables users to search, browse and filter flight
search results.
Oak Investmet Partners $20.0
05/22/14 Brandwatch Brandwatch operates as a social media monitoring company. Highland Capital Partners; Nauta Capital $22.0
05/22/14 DoorDash DoorDash provides restaurant food delivery services. Charles River Ventures; Khosla Ventures; Pejman Mar
Ventures; Sequoia Capital
$17.3
05/20/14 Thumbtack Thumbtack, provides a marketplace and review site for local services, such as handymen, tutors or
gardeners.
Sequoia Capital; Tiger Global Management $30.0
05/20/14 Captora Captora provides inbound marketing acceleration software solutions. Bain Capital Ventures; New Enterprise Associates $22.0
05/20/14 NoWait NoWait offers a mobile software for hospitality industry. Drive Capital $10.0
05/20/14 Bislr Bislr provides intelligent marketing solutions for professional marketers. Rembrandt Venture Partners; Southern Cross Venture
Partners
$10.0
05/15/14 SpoonRocket SpoonRocket prepares gourmet meals and provides food-delivery service. Foundation Capital $11.0
05/15/14 Pinterest Pinterest provides an online tool that enables users to collect, organize and pin things that they find on
websites and blogs.
Andreessen Horowitz; Bessemer Venture Partners; Fidelity
Investments; FirstMark Capital; SV Angel
$200.0
05/15/14 The Whistle The Whistle operates as the first sports entertainment network created to serve young fans and
athletes, providing compelling, quality content on multiple platforms.
Peyton Manning, Derek Jeter, Emil Capital and Bob Pittman $10.0
05/13/14 Swagbucks Swagbucks provides online rewards and loyalty programs. Technology Crossover Ventures $60.0
05/12/14 Wochit Wochit produces news content videos. Cedar Fund; Greycroft Partners; Marker; Redpoint Ventures $11.2
05/09/14 iZettle iZettle a payment service provider, offers services for person-to-person and business-to-consumer
commerce .
Creandum; Dawn Capital; Greylock Israel Partners; Index
Ventures; Intel Capital; SEB Asset Management
$55.1
05/08/14 Talenthouse Talenthouse engages in creating contests and voting widgets that connect celebrities/artists with people
and opportunities for recognition and compensation.
First Artist Bank; Starwatch Entertainment $10.0
05/08/14 Udemy Udemy operates a website that empowers users to teach and learn online. Insight Venture Partners; MHS Capital; Norwest Venture
Partners
$32.0
Source: Signal Hill Database
Includes transactions $10 million or greater
Q2 2014 Select IDM Private Placements ($ in millions)
Announced Investment
Date Target Description of Target Company Investors Size
19
05/07/14 Attensity Group Attensity Group provides corporate insight services based on proprietary data contextualization. Aeris Capital $110.0
05/06/14 Network Merchants Network Merchants builds and delivers e-Commerce payment gateway solutions for companies that
process retail and online transactions in real-time worldwide.
Great Hill Partners undisclosed
05/06/14 Visual Supply Co Visual Supply Co, an art and technology company, provides an ecosystem of digital tools, services and
community for modern creatives.
Accel Partners; Goldcrest Investments $40.0
05/01/14 Shop.ca SHOP.CA operates a cloud Marketplace-as-a-Service destination for approved partners to list, price and
sell their products and services online to customers.
Difference Capital Financial; Shaw Ventures; Slaight
Communications; Torstar Corporation
$28.4
04/30/14 Blue Apron Blue Apron offers once-a-week subscription services delivering ingredients to users to make meals. Bessemer Venture Partners; First Round Capital; Stripes
Group
$50.0
04/29/14 Sprinklr Sprinklr offers enterprise social media management solutions for large enterprises. Battery Ventures; ICONIQ Capital; Intel Capital $40.0
04/29/14 Farfetch Farfetch unites independent fashion boutiques online for customers to buy designer fashion brands
worldwide.
Advent Venture Partners; Conde Nast International,
Investment Arm; Vitruvian Partners
$66.0
04/28/14 Caviar Caviar provides an online menu and delivery service for high-end restaurants. Tiger Global Management $13.0
04/28/14 Mic Network Mic Network operates an online news platform. Silicon Graphics International; WebMD Health $10.0
04/24/14 ShopKeep Provider of cloud-based mobile point-of-sale system. Canaan Partners; Contour Venture Partners; Tribeca Venture
Partners; TTV Capital
$25.0
04/24/14 Wish Wish operates as a mobile social platform for discovering, collecting and sharing products with friends. GGV Capital; Formation8; Jerry Yang $19.0
04/22/14 Weebly Weebly provides online website creation services. Sequoia Capital; Tencent $35.0
04/22/14 Tubular Labs Tubular provides marketing and analytics tools that help brands increase and engage with their
audience on YouTube.
Canaan Partners; FirstMark Capital; Lerer Ventures $11.0
04/21/14 Wanderful Media Wanderful Media owns and operates Find&Save, a comprehensive collection of local sales and
products.
Belo; Advance Digital; Community Newspaper Holdings; Cox
Media Group; Gannett
$14.5
04/21/14 AdRoll AdRoll, an advertising company, operates a retargeting platform for advertisers worldwide. Accel Partners; FLOODGATE; Foundation Capital; Institutional
Venture Partners; Merus Capital
$70.0
04/21/14 Birchbox Birchbox sells beauty care products online and offers skincare products, makeup products, hair care
products, body care products, nails polishes and polish removers.
Accel Partners; Aspect Partners; Comcast Ventures;
Consigliere Brand Capital; First Round Capital
$60.0
04/18/14 airbnb airbnb provides a community marketplace for people to list, discover and book accommodations around
the world via online or from a mobile phone.
Dragoneer Investment Group; Sequoia Capital; T. Rowe Price
Group; TPG Growth
$450.0
04/17/14 Citymapper Citymapper provides a mobile and web-based transit application for New York City, London, Paris and
Berlin.
Balderton Capital; Connect Ventures; Greylock Partners; Index
Ventures
$10.0
04/16/14 Agilone Agilone provides data from transactions, customers, promotions, email, web, mobile, and social and
combines, cleanses and processes with predictive analytics.
Mayfield Fund; Next World Capital; Sequoia Capital; Tenaya
Capital; The Four Rivers Group
$25.0
Source: Signal Hill Database
Includes transactions $10 million or greater
Q2 2014 Select IDM Private Placements ($ in millions)
Announced Investment
Date Target Description of Target Company Investors Size
20
04/16/14 Campaign Monitor Campaign Monitor develops a software for managing email marketing campaigns. Insight Venture Partners $250.0
04/15/14 Kinetic Social Kinetic Social provides a social advertising delivery platform. Blue Chip Venture Company $18.0
04/15/14 Paperless Post Paperless Post provides online invitation and stationery tools to design graphical and interactive
messages.
August Capital; Draper Fisher Jurvetson; Mousse Partners;
RRE Ventures; SV Angel
$25.0
04/15/14 Squarespace Squarespace provides SaaS DIY tools that allow creative professionals, businesses, bloggers and web
developers to create and maintain websites.
General Atlantic $40.0
04/15/14 Avvo Avvo operates an online legal marketplace, Q&A forum and directory. Benchmark Capital; Coatue Management; DAG Ventures;
Ignition Partners
$37.5
04/11/14 Crowdrise CrowdRise owns and operates an online fundraising website for individual fundraisers, non-profit
fundraising and event fundraising.
RatPac-Dune Entertainment; Spark Capital; Union Square
Ventures
$23.0
04/10/14 The Hunt The Hunt operates an online community website that helps consumers find and purchase items inspired
by the photos on social networks such as Pinterest.
Javelin Venture Partners; Khosla Ventures $10.0
04/10/14 Origo Networks
[AppDirect]
Origo Networks provides a cloud service marketplace and management platform that enables
companies to distribute web-based software applications and other products.
Foundry Group; iNovia Capital; Mithril Capital Management $35.0
04/09/14 InsideSales.com InsideSales.com provides a cloud-based sales acceleration platform. Acadia Woods Partners; EPIC Ventures; Hummer Winblad
Venture Partners; Polaris Partners; Salesforce.com
$100.0
04/09/14 Quora Quora operates a website that is a collection of questions and answers created, edited, and organized
by everyone who uses it.
Benchmark Capital; Matrix Partners; North Bridge Venture
Partners; Tiger Global Management
$80.0
04/08/14 Wattpad Wattpad operates a community for readers and writers to discover, connect and share stories on the
web and mobile devices.
AME Cloud Ventures; August Capital; Golden Venture
Partners; Khosla Ventures; Northleaf Capital Partners
$46.0
04/07/14 Kenshoo Kenshoo provides a search engine marketing platform (SEM) for campaign management to agencies,
advertisers and affiliate marketers internationally.
Arts Alliance Advisors; Bain Capital; Sequoia Capital; Sequoia
Capital China; Tenaya Capital
$20.0
04/01/14 fisoc [Buzz Points] fisoc develops web and mobile based loyalty platform such as Buzz Points. Discover Financial Services; KEC Ventures; Greycroft
Ventures
$19.0
04/01/14 Smule Smule develops music applications that enable users to create, discover, love and enjoy music. Bessemer Venture Partners; Granite Ventures; Roth Capital
Partners; Shasta Ventures
$17.2
Source: Signal Hill Database
Includes transactions $10 million or greater
Q2 2014 Select IDM Private Placements ($ in millions)
Announced Investment
Date Target Description of Target Company Investors Size
21
Section IV: IPO Activity
22
LTM Performance
Revenue
($mm)
EBITDA
($mm)
EV /
Revenue
(6/30)
EV /
Revenue
(IPO)
Revenue
Growth
EBITDA
Margin
1st
Week
1st
MonthYTD
5/22/2014 JD $1,780 $16.00 - $18.00 $19.00 $12,590 ($661) 3.0x 2.2x 89.7% NM 33.7% 33.9% 50.1%
5/16/2014 TRUE $70 $12.00 - $14.00 $9.00 $153 ($19) 6.6x 4.4x 91.3% NM 2.4% 51.9% 64.2%
4/17/2014 SABR $627 $18.00 - $20.00 $16.00 $3,046 $615 3.1x 2.4x 2.4% 20.2% 5.3% 1.8% 25.3%
4/17/2014 WB $286 $17.00 - $19.00 $17.00 $230 ($27) 18.8x 20.3x 248.8% NM 20.2% 16.2% 20.5%
4/04/2014 GRUB $193 $23.00 - $25.00 $26.00 $170 $39 15.8x 17.8x 106.5% 23.0% 29.4% 19.4% 36.2%
4/02/2014 RUBI $102 $15.00 - $17.00 $15.00 $90 ($3) 5.5x 3.2x 58.1% NM 33.5% (1.6%) (14.4%)
Initial Indicated
Range
Offer
Price
Pricing
DateCompany Ticker
Offer
Size
($mm)
LTM*
Revenue
($mm)
EBITDA
($mm)
Revenue
Growth
EBITDA
Margin
6/9/2014 GoDaddy $100 $1,188 $9 30.4% 0.8%
6/4/2014 Travelport $100 $2,100 $503 4.9% 24.0%
5/6/2014 Alibaba $1,000 $8,446 $4,479 52.1% 53.0%
3/26/2014 TubeMogul $81 $57 ($6) 67.5% NM
3/24/2014 Box $150 $124 ($142) 111.2% NM
Original Filing Date Company Offer Size ($mm)
*At most recent filing date
Note: As of July 2014, TubeMogul has priced its IPO
IPOs Filed
IPOs Priced
Source: Capital IQ
Internet & Digital Media IPO Activity
23
$0
$7
$14
$21
$28
$35
3/31/2014 4/30/2014 5/31/2014 6/30/2014
$0
$8
$16
$24
$32
$40
3/31/2014 4/30/2014 5/31/2014 6/30/2014
GrubHub (GRUB) JD.com (JD)
Date of IPO: 4/4/2014
Exchange: NYSE
Offer Size: $193 mm
Commentary: GrubHub, the online food ordering
company, priced its shares at $26, higher than the
anticipated $23-$25 range. On its market debut, the
stock price jumped as high as 50%, before closing at
$34. The Company says proceeds from the offering
will be reinvested in the business, which suffered an
$8.5 million drop in Net Income from $15.2 million
over the last year.
Date of IPO: 5/22/2014
Exchange: NASDAQ
Offer Size: $1,780 mm
Commentary: JD.com, the Chinese online direct
sales company that also provides delivery services
to shoppers, gained 10% in its first day of trading
after closing at $20.90. The successful offering
marked a growing affinity for Chinese e-Commerce,
despite expectations that the company will remain
unprofitable until 2016. The Company will use the
money raised to pay off debts of $18 million and will
retain the rest as cash for liquidity and flexibility.
Offer Price: $26.00
Offer Price: $19.00
6/30 Price: $35.41
6/30 Price: $28.51
Q2 2014 IPOs
Source: Capital IQ, Wall Street Research
24
$0
$5
$10
$15
$20
$25
3/31/2014 4/30/2014 5/31/2014 6/30/2014
$0
$5
$10
$15
$20
$25
3/31/2014 4/30/2014 5/31/2014 6/30/2014
The Rubicon Project (RUBI) Sabre (SABR)
Date of IPO: 4/2/2014
Exchange: NYSE
Offer Size: $102 mm
Commentary: On its debut, The Rubicon Project, a
tech company that provides advertising automation
solutions, closed 33% above its offer price at $20.09.
The stock has since fallen below its offer price of $15.
IPOs in the ad tech industry have been eclectic in
nature with Criteo and Rocket Fuel outperforming
several video companies. CEO Frank Addante plans
to inject $81.3 million of the cash raised into the
Company, while sending $20 million to shareholders.
Date of IPO: 4/17/2014
Exchange: NASDAQ
Offer Size: $627 mm
Commentary: Sabre, the travel booking wholesaler
that owns Travelocity, priced its shares below the
expected $18-$20 range at $16. The Company was
bought out by TPG Capital and Silver Lake Partners
in 2007 for $5 billion and has improved with the
booming travel and tourism industry. Revenues grew
2.5% in 2013 to $3 billion, while global air travel and
hotel spending is expected to grow 5% annually until
2017.
Offer Price: $15.00
Offer Price: $16.00
6/30 Price: $12.84
6/30 Price: $20.05
Q2 2014 IPOs
Source: Capital IQ, Wall Street Research
25
$0
$5
$10
$15
$20
$25
3/31/2014 4/30/2014 5/31/2014 6/30/2014
$0
$4
$8
$12
$16
$20
3/31/2014 4/30/2014 5/31/2014 6/30/2014
TrueCar (TRUE) Weibo (WB)
Date of IPO: 5/16/2014
Exchange: NASDAQ
Offer Size: $70 mm
Commentary: TrueCar, which operates an online
car shopping and research site, priced its offering
well below the expected range at $9. The company
pushed forward with its offering despite other tech
companies like Box delaying in response to market
fears of a potential technology bubble. TrueCar
claims to be involved in 3.2% of new car sales
despite being majorly unknown. Proceeds from the
offering will be used to pay for more marketing.
Date of IPO: 4/17/2014
Exchange: NASDAQ
Offer Size: $286 mm
Commentary: Weibo, the Chinese social media
company most often compared to Twitter,
experienced a 19% gain, closing at $20.24 on its
first day of trading. The Company claims to have
130 million active users and recorded $183 million in
2013 revenue. Some of the net proceeds will be
used to pay down loans to the company’s parent,
Chinese internet media company SINA.
Offer Price: $9.00
Offer Price: $17.00
6/30 Price: $14.78
6/30 Price: $20.48
Q2 2014 IPOs
Source: Capital IQ, Wall Street Research
26
This document has been prepared by Signal Hill Capital Group LLC (“Signal Hill”) solely for informational purposes from information supplied by
various sources and Signal Hill’s independent research. The information contained herein has been prepared to assist parties in making their
own evaluation of the Internet and Digital Media sector, and to suggest that further analysis and consideration may be warranted. Unless
otherwise indicated, Signal Hill does not believe that the information contained herein is sufficient to serve as the basis of an investment
decision. To learn more about the information that is the subject of this commentary, contact one of the person(s) named herein who can
provide additional insight.
Disclaimer
27
Appendix A: Signal Hill Investment Banking
28
Signal Hill at a Glance
Signal Hill is a leading independent advisory boutique serving the M&A and private capital raising needs of growth
companies. Signal Hill's experienced bankers provide deep domain expertise and an unyielding commitment to
clients in our sectors: Internet & Digital Media, Internet Infrastructure, Services and Software. With more than 600
completed transactions and offices in Baltimore, Bangalore, Boston, Mumbai, Nashville, New York, Reston and San
Francisco, Signal Hill leverages deep strategic industry and financial sponsor relationships to help our clients
achieve Greater Outcomes®.
Recent Mergers & Acquisitions, Strategic Advisory Transactions
Mergers &
Acquisitions
Equity Private
Placements
Restructurings
Strategic
Advisory
Special
Committee
Advisory
Fairness
Opinions
29
Longstanding Relationships with Key Sponsors and Strategic Players
Digital Media
e-Commerce
Interactive Marketing
Internet
Content/Services
Services
Correctional/Behavioral
Education
Healthcare
Specialty
Consulting/BPO
Internet
Infrastructure
Cloud Services/Hosting
Colocation
Fiber Infrastructure
Unified Coms & Apps
Software
Enterprise/SaaS
Financial Technology
Healthcare IT
Infrastructure
Mobility
Security & Compliance
Deep Domain Expertise in Key Growth Sectors
30 Includes previous experience
Leadership in Internet & Digital Media
31
SaaS-based solution for
businesses to create, manage
and measure social media
engagement across the web
Targeted marketing and
coupon services to
manufacturers of grocery
and consumer products
Media and marketing
information services
company offering audience
and marketing information
data
451 Group Rankings
2012 Internet
Content & Commerce
Top Dealmakers
1. Barclays
2. Signal Hill
3. Morgan Stanley
4. Evercore Partners
5. GCA Savvian
6. Horizon Partners
7. DeSilva + Phillips
8. JP Morgan
9. Bank of America
10. Deutsche Bank
2012 Announced Transactions Include:
Powerful online provider for
charity fundraising and
grassroots fundraising
campaigns
Provider of targeted online
advertising and content
solutions through its
community of websites
Leading provider of royalty-
free high definition stock
video and audio
Top Ranked Internet Advisory Practice
32 * Certain transactions completed by team members at prior firms
We Work with Leading Acquirers
With Arbitron, Nielsen will enhance its media measurement abilities specifically in the
outdoors and sports events categories, as well as its reach into consumer habits
Targeted marketing and coupon services for manufacturers of grocery and consumer
products enables Google to deliver more personalized deals for its commerce
initiatives
A platform for managing marketing on multiple social channels through a single
interface
Allows Oracle to help brands create custom applications as marketing trends change
A multimedia technology company with expertise in creating online marketplaces for
passionate enthusiast groups
Increased ability to serve customers via the integration of physical and digital small
business identity and marketing
A US based leader in merchant-funded transaction-driven marketing for electronic
banking
A leading provider of television advertising solutions
With Navic, Microsoft ‘s advertising platform facilitates enhanced digital advertising
Deal done despite Microsoft’s public bid for Yahoo!
Early in revenue generation
4.6x LTM revenue multiple; 24.2x LTM EBITDA multiple
Received multiple offers from strategic and financial buyers
Move to establish Nokia as a leader in Internet Services
While Nokia was the natural buyer, establishing a credible feeling of competition was
critical
Accelerates transformation to cloud-based learning and provides geographic
expansion and diversified user base with over 16 million members from 195 countries
Focus and Tenacity Yields Superior Outcomes for Our Clients
33 Previous Experience
private placement
Peak 10 is a leading
independent colocation and
managed services
infrastructure provider in
the eastern United States
RMI is the largest provider
of automated, mission-
critical rail information
solutions to the
transportation industry
has been acquired by
has sold a majority
ownership stake to
Telarix is the leading
provider of
choice in the international
interconnect market
Minsec provides cost-
effective, community-based
alternatives to incarceration
for governmental agencies.
Acclaris is a leading
provider of financial
technology and integrated
services for the
administration of consumer
healthcare accounts
e-Rewards provides
permission based digital
data collection and
reporting services
worldwide
TeeFury provides software
solutions and consulting
services to the media
industry
All Web Leads provides
online sales leads for the
insurance industry in the
United States
has received a majority
investment from
CIBC World
Markets
private placement
Cardlytics offers banking
rewards
solution services
Stream Data Centers is a
leading developer of
secure, independent, highly
efficient data centers for
Corporate America
private placement
Footage Firm is the leading
provider of royalty-free high
definition stock video and
audio
private placement
Razorsight is a SaaS
provider of profit analytics
solutions to
communications service
providers and evolving
supplier networks
private placement
private placement
Alliance Health develops,
owns and operates online
social health networks for
healthcare consumers and
marketers
IO Data Centers designs
and engineers digital
energy technology for large
enterprises, governments,
and service providers
iCreate Software provides
banking business
intelligence and analytics
solutions for the banking and
financial services industry
has received equity
funding from
private placement private placement
private placement private placement private placement
High Quality Strategic Private Placements
34 Previous Experience
Global Footprint and Access
Canada Europe Asia
Latin America
Member, FINRA
www.signalhill.com
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