INFORMATION INDUSTRY h e Production and Provision of...
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TransacƟon volume decreased ten percent over the past three months, from 1,076 to 964. Overall value fell 42 percent, from $111.4 billion to $64.8 billion. This followed a 78 percent increase in Q4 2017, which was due in major part to The Walt Disney Company’s announced acquisiƟon of 21st Century Fox for $66.1 billion. M&A acƟvity throughout the past five quarters reached its peak in Q1 2017, whereas value reached its zenith in Q4 2017. Eight of the InformaƟon Industry’s top ten largest deals in Q1 2018 were completed by strategic acquirers. The median revenue mulƟple moved downward from 2.1x to 1.8x, while the median EBITDA mulƟple remained nearly constant at 10.8x. Disclosed median enterprise value mulƟples throughout the last five quarters were 2.0x revenue and 10.4x EBITDA. Regarding the industry’s three broad-based horizontal markets, SoŌware volume declined eight percent in Q1 2018. TransacƟon volume in the Infrastructure segment underwent an 43 percent increase, which was the horizontal’s largest sector gain. The highest value security related transacƟon during the quarter was LexisNexis Risk SoluƟons’ announced acquisiƟon of ThreatMetrix, which provides cloud-based fraud prevenƟon soluƟons, for $804 million. In the Online & Mobile horizontal, volume saw a 12 percent quarterly decrease. The E-Content segment experienced a 33 percent gain, which marked a return to its Q3 2017 level. This made it the sector with the horizontal’s largest rise in volume. As for the Media & MarkeƟng horizontal, volume declined six percent on a quarterly basis. Deal flow in the Internet Media segment rose 25 percent, which was the horizontal’s most improved sector during the quarter. Q1 2018 :: Mergers and Acquisitions Trend Report Presented by Berkery Noyes INFORMATION INDUSTRY :: Te Production and Provision of Content Figure 1. 2017-2018 value and volume comparison by quarter. Figure 2. 2017-2018 median value, revenue, EBITDA comparison. Coverage Overview The Information report features acquisitions in the horizontal Media & Marketing, Software, and Online & Mobile Industries. It covers vertical markets including, but not limited to, the following segments: Business & Compliance; Construction & Real Estate; Distribution, Retail & Wholesale; Education; Energy; Financial Services & Accounting; Health & Pharmaceutics; Law & Government; Lifestyle & Entertainment; Manufacturing; Marketing & Advertising; News Media; Science & Technology; Transportation; and Travel & Hospitality. Top Ten Notable Transactions Q1 2018 Figure 3. Lists the top ten transactions for Q1 2018 and calculates their value as a percentage of the aggregate transaction value as shown in Figure 1. Note: Transaction data based on announced date.
Transcript of INFORMATION INDUSTRY h e Production and Provision of...
Transac on volume decreased ten percent over the past three months, from 1,076 to 964. Overall value fell 42 percent, from $111.4 billion to $64.8 billion. This followed a 78 percent increase in Q4 2017, which was due in major part to The Walt Disney Company’s announced acquisi on of 21st Century Fox for $66.1 billion.
M&A ac vity throughout the past fi ve quarters reached its peak in Q1 2017, whereas value reached its zenith in Q4 2017. Eight of the Informa on Industry’s top ten largest deals in Q1 2018 were completed by strategic acquirers.
The median revenue mul ple moved downward from 2.1x to 1.8x, while the median EBITDA mul ple remained nearly constant at 10.8x. Disclosed median enterprise value mul ples throughout the last fi ve quarters were 2.0x revenue and 10.4x EBITDA.
Regarding the industry’s three broad-based horizontal markets, So ware volume declined eight percent in Q1 2018. Transac on volume in the Infrastructure segment underwent an 43 percent increase, which was the horizontal’s largest sector gain. The highest value security related transac on during the quarter was LexisNexis Risk Solu ons’ announced acquisi on of ThreatMetrix, which provides cloud-based fraud preven on solu ons, for $804 million.
In the Online & Mobile horizontal, volume saw a 12 percent quarterly decrease. The E-Content segment experienced a 33 percent gain, which marked a return to its Q3 2017 level. This made it the sector with the horizontal’s largest rise in volume.
As for the Media & Marke ng horizontal, volume declined six percent on a quarterly basis. Deal fl ow in the Internet Media segment rose 25 percent, which was the horizontal’s most improved sector during the quarter.
Q1 2018 :: Mergers and Acquisitions Trend Report
Presented by Berkery Noyes
INFORMATION INDUSTRY :: Th e Production and Provision of Content
Figure 1. 2017-2018 value and volume comparison by quarter.
Figure 2. 2017-2018 median value, revenue, EBITDA comparison.
Coverage Overview
The Information report features acquisitions in the horizontal Media
& Marketing, Software, and Online & Mobile Industries.
It covers vertical markets including, but not limited to, the following
segments: Business & Compliance; Construction & Real Estate;
Distribution, Retail & Wholesale; Education; Energy; Financial
Services & Accounting; Health & Pharmaceutics; Law &
Government; Lifestyle & Entertainment; Manufacturing; Marketing
& Advertising; News Media; Science & Technology; Transportation;
and Travel & Hospitality.
Top Ten Notable Transactions Q1 2018
Figure 3. Lists the top ten transactions for Q1 2018 and calculates their value as a percentage of the aggregate transaction value as shown in Figure 1.
Note: Transaction data based on announced date.
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All charts in this report are based on data gathered by Berkery Noyes’ research department. All time period statistics are based
on the transaction announcement date. Th e information contained herein is of a general nature and is not intended to address the circumstances of any particular company, individual, or entity. Th ere can be no guarantee that such information is accurate.
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