The
Information report features companies in the Media & Marketing, Software,
and Online & Mobile Industries. It analyzes M&A activity during 2015
and compares it with data covering 2013 and 2014.
According
to Berkery Noyes’ latest research there was a nine percent increase in deal
volume. Total value in the Information Industry gained 49 percent on a
year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value
was attributable in large part to Dell’s announced acquisition of EMC
Corporation for $67.48 billion, which was the highest value deal ever recorded
in the industry. The EMC deal accounted for about one-fifth percent of the
Information Industry’s aggregate value during the year. Without this
transaction, overall value rose 19 percent.
The
industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015,
while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the
$10-$20 million range over the past three years received a median enterprise
value multiple of 2.1x revenue, whereas those above $160 million had a median
enterprise value multiple of 3.3x revenue.
One
notable trend in 2015 was non-tech companies looking to acquire information and
tech businesses. Examples with deal values above $1 billion were car
manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of
HERE, a digital mapping and location intelligence business, for $3.1 billion;
and defense contractor Raytheon with the acquisition of Websense, a
cyber-security firm, for $1.9 billion.
Meanwhile,
transactions highlighting this trend with deal values below $1 billion included
audio and infotainment manufacturer Harmon International, which serves several
markets such as the automotive sector, with the acquisition of Symphony Teleca,
a software engineering and integration service, for $548 million and Red Bend
Software, a provider of software management for connected devices, for $170
million; and aircraft manufacturer Boeing with the acquisition of Peters
Software, a provider of aviation training content for commercial and private
pilots, as well as 2d3 Sensing, an imagery software company that processes
critical intelligence and surveillance data.
Regarding
the three horizontal markets in the report, volume in the Media & Marketing
portion of the Information Industry improved eight percent over the past year.
Transaction value in the horizontal’s B2B Publishing and Information segment
more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best
represented Media segment with five of the top ten highest value deals in the
horizontal.
As
for the Software horizontal, deal activity rose nine percent in 2015. This
included a 19 percent gain in the Infrastructure segment. In terms of specific
buyers, the most active Infrastructure acquirer during the year was IBM with
six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage
software; CleverSafe, a data storage technology company; StrongLoop, a software
provider that enables developers to build APIs that connect applications and
devices; Appcore, a cloud automation management platform; Blue Box Group, a
managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive
computing company that will integrate with IBM’s Watson platform.
The
Online & Mobile horizontal market saw volume increase 12 percent between
2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent.
In terms of value, the largest E-Commerce acquirer in 2015 was online travel
company Expedia with a combined total of $4.94 billion paid in transaction
value. This consisted of HomeAway, an online marketplace for the vacation
rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42
billion and Travelocity.com for $280 million.
Berkery Noyes Releases Information Industry M&A Report For Full Year 2015
Wednesday, January 13, 2016
NEW YORK — January 13, 2016 — Berkery
Noyes, an independent mid-market investment bank, today released its
full year 2015 mergers and acquisitions trend report for the Information
Industry.
The Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
- See more at: http://www.berkerynoyes.com/publication/pr/2015FY/info.aspx#sthash.lTJwD25U.dpufThe Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
Berkery Noyes Releases Information Industry M&A Report For Full Year 2015
Wednesday, January 13, 2016
NEW YORK — January 13, 2016 — Berkery
Noyes, an independent mid-market investment bank, today released its
full year 2015 mergers and acquisitions trend report for the Information
Industry.
The Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
- See more at: http://www.berkerynoyes.com/publication/pr/2015FY/info.aspx#sthash.lTJwD25U.dpufThe Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
Berkery Noyes Releases Information Industry M&A Report For Full Year 2015
Wednesday, January 13, 2016
NEW YORK — January 13, 2016 — Berkery
Noyes, an independent mid-market investment bank, today released its
full year 2015 mergers and acquisitions trend report for the Information
Industry.
The Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
- See more at: http://www.berkerynoyes.com/publication/pr/2015FY/info.aspx#sthash.lTJwD25U.dpufThe Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
Berkery Noyes Releases Information Industry M&A Report For Full Year 2015
Wednesday, January 13, 2016
NEW YORK — January 13, 2016 — Berkery
Noyes, an independent mid-market investment bank, today released its
full year 2015 mergers and acquisitions trend report for the Information
Industry.
The Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
- See more at: http://www.berkerynoyes.com/publication/pr/2015FY/info.aspx#sthash.lTJwD25U.dpufThe Information report features companies in the Media & Marketing, Software, and Online & Mobile Industries. It analyzes M&A activity during 2015 and compares it with data covering 2013 and 2014.
According to Berkery Noyes’ latest research there was a nine percent increase in deal volume. Total value in the Information Industry gained 49 percent on a year-to-year basis, from $230.81 billion to $342.78 billion. This rise in value was attributable in large part to Dell’s announced acquisition of EMC Corporation for $67.48 billion, which was the highest value deal ever recorded in the industry. The EMC deal accounted for about one-fifth percent of the Information Industry’s aggregate value during the year. Without this transaction, overall value rose 19 percent.
The industry’s median revenue multiple declined from 2.3x in 2014 to 2.1x in 2015, while the median EBITDA multiple decreased from 11.5x to 10.7x. Deals in the $10-$20 million range over the past three years received a median enterprise value multiple of 2.1x revenue, whereas those above $160 million had a median enterprise value multiple of 3.3x revenue.
One notable trend in 2015 was non-tech companies looking to acquire information and tech businesses. Examples with deal values above $1 billion were car manufacturers BMW Group, Audi Group, and Mercedes-Benz with the acquisition of HERE, a digital mapping and location intelligence business, for $3.1 billion; and defense contractor Raytheon with the acquisition of Websense, a cyber-security firm, for $1.9 billion.
Meanwhile, transactions highlighting this trend with deal values below $1 billion included audio and infotainment manufacturer Harmon International, which serves several markets such as the automotive sector, with the acquisition of Symphony Teleca, a software engineering and integration service, for $548 million and Red Bend Software, a provider of software management for connected devices, for $170 million; and aircraft manufacturer Boeing with the acquisition of Peters Software, a provider of aviation training content for commercial and private pilots, as well as 2d3 Sensing, an imagery software company that processes critical intelligence and surveillance data.
Regarding the three horizontal markets in the report, volume in the Media & Marketing portion of the Information Industry improved eight percent over the past year. Transaction value in the horizontal’s B2B Publishing and Information segment more than doubled, from $9.38 billion to $23.01 billion. B2B was also the best represented Media segment with five of the top ten highest value deals in the horizontal.
As for the Software horizontal, deal activity rose nine percent in 2015. This included a 19 percent gain in the Infrastructure segment. In terms of specific buyers, the most active Infrastructure acquirer during the year was IBM with six transactions. This consisted of Gravitant, a developer of hybrid cloud brokerage software; CleverSafe, a data storage technology company; StrongLoop, a software provider that enables developers to build APIs that connect applications and devices; Appcore, a cloud automation management platform; Blue Box Group, a managed private cloud provider built on OpenStack; and AlchemyAPI, a cognitive computing company that will integrate with IBM’s Watson platform.
The Online & Mobile horizontal market saw volume increase 12 percent between 2014 and 2015. The number of deals in the E-Commerce segment gained 16 percent. In terms of value, the largest E-Commerce acquirer in 2015 was online travel company Expedia with a combined total of $4.94 billion paid in transaction value. This consisted of HomeAway, an online marketplace for the vacation rental industry, for $3.24 billion; as well as Orbitz Worldwide for $1.42 billion and Travelocity.com for $280 million.
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