I N DEPEN DENT I NVESTMENT BAN KI NG FOR MEDIA, INFORMATION, MARKETING & TECHNOLOGY

Client Briefing July 2015

since 1987

The Jordan, Edmiston Group, Inc. (JEGI)hosted its first Human Capital Manage-ment Symposium, with partner S&P Capital IQ, on June 3rd at the Yale Club of New York City. Focused on “Innovation Driving Growth in HCM”, this exclusive event brought together nearly 100 senior executives and investors across the HCM ecosystem to hear key industry trends and growth opportunities. The Symposium content is summarized in this newsletter.

Opening Keynotemoderator: Jeff Becker, Managing Direc-tor & Co-Head of Technology Banking, JEGIkeynote: Deb Cupp, Head of HR Line of Business, SAP North Americabecker: As head of the HR line of business North American sales at SAP SuccessFac-tors, a global provider of cloud-based HCM software, what’s to come?

cupp: About 60% of organizations are go-ing to make a buy in HR technology in the next 18 months for three reasons: (i) tech-nology is more enabled in the cloud; (ii) executives are starting to recognize the importance of people management and the competitiveness for talent, so more HR officers have a seat at the table; and (iii) the Gen Y’ers will make up 75% of ourworkforce in 2025, meaning companieshave to do things a little differently tomanage this generation.

The other key variable is the contingent workforce, which is growing dramatically. Companies are trying to figure out how to manage, train and develop this group. It’s a key priority for SAP, and one where we are investing talent, focus and resources. becker: Do Fieldglass (vendor manage-ment) and Concur (travel and expense management) fall into HR?

cupp: Our acquisition strategy is to leave an organization on its own for a while, so Concur has a dedicated sales force. Field-glass has an HR and Procurement compo-nent, but we have a different sales force for it today. As these acquisitions mature, we will evaluate the correct go to market model based on the market demand.

Cloud is a huge shift for SAP. Over the past seven years, SAP has completed six or seven acquisitions in Cloud. We have gone from a very strong on-premise, mainte-nance-based organization to the addition of a cloud-based one, which has altered and enhanced our revenue streams.

becker: How do you view the current state of recruiting technology, both within SAP and generally?

cupp: There is a lot of opportunity as cus-tomer demands increase. From a technol-ogy perspective, there is a lot of room for niche applications. For example, many organizations are trying to figure out their social strategy and how to relate it to recruiting. Also, mobile is gigantic. At SAP, we have a strong recruiting module that sees enhancements in each release. In addition, we announced a relation-ship with IBM’s Kenexa, which is also a competitor. We have customers who use Kenexa, and they’re asking us to be-come more integrated in order to see the

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JEGI Human Capital Management Symposium

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In This Issue• JEGI Human Capital

Management Symposium• Opening Keynote

01020304060708

• HCM Company Spotlights

• The Future of WorkforceAnalytics

• PE Investor Insights on theM&A Market

• Beyond the ATS - TalentAcquisition/Recruiting forToday’s World

• JEGI H1 2015 M&A Overview

• Exceptional TransactionExperience

(from left) Scott Peters (JEGI); Yvonne Genovese (Gartner); Wilma Jordan (JEGI); Roy Anderson (WeiserMazars); and Dick Faltin (WeiserMazars)

JEGI May 2015 Emerging Company Dinner

Jeff Becker (JEGI) and Deb Cupp (SAP)

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full picture. We want customers to get the most out of their technology buy, so accessibility and ease of use are key.

becker: A hot area is analytics and big data. Are we at a point where the core HR information systems are in place and now there is an opportunity to build analytics on top of it?

cupp: The key to workforce analytics is to give our customers templates, so they have the capacity to understand the key met-rics for their business. Their data populates the templates quick-ly and easily and creates actionable insights.

For example, some customers are focused on diversity. They can use our analytics to predict who is going to resign based on a num-ber of variables – pay, history, performance ratings, etc. We have customers who are trying to determine their at risk employees.

becker: Going back to social technologies, where does it fit into the HCM suite, especially as solutions start to gear towards millennials?

cupp: A year ago, social would not be part of an HCM suite buy. Now, a platform play almost always has a social component, main-ly due to the learning aspect of social collaboration. SAP has Jam, a social learning collaboration solution with 20 million users today.

becker: And do you see this in other parts of the company, be-sides learning, such as in recruiting?

cupp: Yes, all the time. Another strong best practice is people us-ing collaboration for new hires before they start. Companies lose most of their people in the first year, so we push out training and learning to new recruits.

becker: Where do we go from here from a consolidation perspective?

cupp: There is still room for more acquisitions. SAP and others are building in an open environment, so we have the capacity to expand, with partners or third parties. Enterprise Jungle, and other similar firms, are building outside of our solution, but they connect via API. There is a lot of room for niche players in the performance management space.

There is a lot of focus on annual performance reviews, so we’re see-ing innovation in that space, including instant feedback tools. This is another area where collaboration tools are becoming standard.

becker: What are the interesting next frontiers within the HR space, from a technology services perspective?

cupp: The performance management space is interesting. Com-panies want to ensure that their employees are aligned with company goals, so there will be technology and content built around this. Companies are also trying to figure out how to cre-ate environments for the contingent force that can be integrated with systems that already exist.

An important area of focus is the ability to deliver technology with some content, meaning the creation of templates and best practices in reporting. Analytics will keep growing, and there will be lots of opportunities in that space. Overall, we see much growth and opportunity in the HR tech space and look forward to collaborating with customers to define what’s next! n

HCM Company SpotlightsSix innovative emerging growth companies presented at JEGI’s HCM Symposium. Brief company descriptions are below. For more information, including company materials, click here. erecruitPresenter: Judd Hoffman, Vice Chairman & Chief Revenue Officererecruit uses modern, standards-based technologies to provide staffing firms and employers with highly scalable and configu-rable software solutions for enterprise staffing, vendor manage-ment and employee onboarding.inf inisourcePresenter: Dave Dawson, CEOInfinisource’s flagship technology product, iSolved, is a compre-hensive human capital management solution for the SMB mar-ket, offering payroll, core HR, time and labor tracking, as well as benefit enrollment, all within a unified technology platform.jobalinePresenter: Luis Salazar, Chairman & CEOJobaline provides a mobile and bilingual hourly jobs matching marketplace and training network that makes it easy for work-

ers to find, apply for and get matched to jobs, as well as receive training, from any mobile phone, tablet or computer. justworksPresenter: Isaac Oates, Founder & CEOJustworks provides a comprehensive platform that automates payments, payroll, HR administrative tasks and government pa-perwork, while saving employers up to 30% on healthcare costs.nas recruitment innovationPresenter: Matt Adam, EVP & Chief Talent StrategistNAS Recruitment Innovation provides recruitment marketing and HR communications solutions. NAS’s ACTIVATE platform optimizes candidate sourcing and improves overall recruitment marketing effectiveness. pan - performance assessment networkPresenter: Jim Holm, President & COOPAN provides talent measurement solutions that help organiza-tions of all sizes hire, develop and retain the right talent. PAN’s technologies and assessment tools offer clients a one-stop shop assessment experience. n

Opening Keynote (continued from page 1)

“There is a lot of room for niche players in the performance management space.”

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Kevin Oakes, Founder & CEO, i4cp (moder-ator): Analytics is one of hottest topics in human capital management today. Why?

Chris Broderick, Director of HR, Workforce Analytics & Consulting, IBM: Last fall, we spoke to 40 executives globally in prepar-ing a white paper. They are using analytics to better understand the dynamics of the changing global workforce – the way we work, where we work, how work happens. There is also an opportunity to harness so-cial and mobile data to better understand what’s happening within the workforce.

Mike Emsley, SVP, Business Intelligence & Analytics, Workforce Insight: We largely work with organizations with very large, non-exempt hourly workforce popula-tions. They are collecting all sorts of data, and want to know what to do with it. They know they need to do something, and want to know what best practices are and what their competitors are doing.

Oakes: Where do you think organizations are in this journey toward HR analytics?

Rudy Karsan, Former CEO, Kenexa & Grand Poobah, Karlani Capital: HR is still in the dugout. The rest of the organization is still in the first inning of the game. The problem is, we are trying to put rational thought around emotional beings, and it’s very, very difficult. So, I expect that a lot of segmentation is going to take place – by vertical, by job, by community and by every other way you can dissect the population.

Broderick: Some folks are still trying to get their data together, others are well be-yond basic reporting and dashboards and are moving into predictive kinds of spaces, and there are folks who are moving in the social space.

Emsley: For our customers, it depends on their type of business. We’re working with some hyper growth companies where it’s the norm right now to have predictive ca-pabilities that enable data-driven HR. For the more traditional manufacturers we’re working with, it’s a much slower process. They have just put in the backbone and are contemplating what to do next.

Oakes: Many chief HR officers don’t know where to start and don’t necessarily have the talent on board inside their organiza-tion to lead the way. Should companies fo-cus on hiring that talent or train the talent they have on how to harness their data?

Emsley: If you look at the PHR, SPHR body of knowledge, there is not much built around data-driven HR. There is a big opportunity to look for help externally, but there is no one area you can go to get that type of training – it starts to get into technology and data and data science and statistics.

Broderick: A few years ago, IBM’s HR staff function set up analytics as one of the fo-cal areas of the HR strategy, and what that meant was building the capability for ana-lytics within the entire HR function. Every HR professional had to go to a week long boot camp that taught what it means to apply analytics to the HR function.

Oakes: Let’s shift focus for a second to what people are measuring. We talk about things like quality of hire, quality of attrition, quality of movement, time to full productivity. Where do companies typically start, and where do they get the biggest bang for their buck, overall?

Emsley: For the non-exempt workforce and large employee pools, a lot of focus is on the margins, on the optimization side – the cost of overtime and absentee-ism, very tactical stuff around payrolls and labor rules. When you are working with a large workforce, there is a lot of low hang-ing fruit there, a lot of huge ROI.

Broderick: Cost optimization and efficien-cies are the number one area of focus in

analytics. If you are just getting started, find those parts of your organization that really have a problem that needs to be solved, where you have got a receptive au-dience that wants to collaborate with you and you can demonstrate value quickly, then build momentum to win over the rest of the organization on the value of HR analytics.

Oakes: A lot of organizations are focused on using analytics for recruiting. Is that a natural place to start?

Karsan: It depends on the size of the or-ganization. Recruiting at IBM is very dif-ferent than recruiting at a 100-person company. Large organizations that don’t use analytics in recruiting are paying way too much money. Smaller organizations should start tracking where they get their winners from and use that to build their analytics. Larger organizations have to develop stronger methodologies, because the cost per employee hire is now about $1,200 in the U.S. That’s insane.

Broderick: We’re looking at how IBM is resonating across the employment life cycle, from potential employees to exist-ing employees and our past employees. We now have mechanisms to understand what the relationships look like and how we can leverage various social tools and hooks to tighten up those relationships and build that employment brand.

Oakes: Is the HR market going to be domi-nated by single standalone tools to incorpo-rate data from multiple different sources?

Emsley: It’s amazing what’s available now. We’re seeing a lot of best of breed solu-tions for the different components. There is a lot on the visualization side, and we are also seeing a lot of innovative, power-ful, cloud-based integration layers.

Karsan: If you are looking to invest in a company with analytics, make sure that they have a strong machine learning com-ponent as part of their tool kit, because if they don’t, they are going to be left behind.

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The Future of Workforce Analytics

(from left) Kevin Oakes (i4cp); Chris Broderick (IBM); Mike Emsley (Workforce Insight); Wilma Jordan (JEGI); Jeff Becker (JEGI); and Rudy Karsan (Karlani Capital)

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JEGI asked a select group of experienced PE executives who invest in the media, information, marketing, software and tech-enabled services sectors to provide insights on the M&A market:

1. What is your view on the current state of the M&A market? And, what major secular trends are you tracking that could im-pact your investment strategy?

2. With regard to your fund’s acquisition strategy over the next 12 to 18 months, in which sectors/business models do you expect to be a net buyer vs. net seller?

3. What levels of senior and mezzanine debt multiples are you seeing in the market right now? Where do you see the debt mar-ket heading during the second half of 2014?

4. As an active investor in the sectors served by JEGI, what are the key concerns that “keep you up at night”?

chris langone, principal & head of u.s. business develop-ment, symphony technology group, chris@symphonytg.com

The M&A market remains robust (perhaps overheated), both from a deal flow perspective and a valuation perspective. Our deal flow this year is up approximately 10% over an already strong 2014, but median deal size is down 25%, indicating per-haps less mature companies are being brought to market to take advantage of the frothy prices being paid. We estimate that in 2015 YTD, valuations for the deals in the sectors in which we fo-cus are up 10% to 20% over last year. This is being driven by the significant amounts of capital that need to be put to work by our brethren, who have recently raised ever-larger funds, com-bined with a shortage of large, high-quality deals (i.e., there are more smaller deals coming to market, so when an interesting, larger business comes to market, it creates a “feeding frenzy”). Additionally, the low cost and high availability of debt, driven by an expanding group of aggressive, non-traditional lenders, has caused valuations to be stretched even further.

Over the next 12 to 18 months, and assuming current market conditions remain the same, we would like to be net neutral in terms of buying vs. selling in our key focus areas of software, tech-enabled services and healthcare (information/analytics-driven healthcare and HCIT). While we have been more aggres-sive with the prices we are willing to pay and the structures we are willing to accept, we have largely stuck to our sector focus and have found particular success with corporate carve-outs.

We are seeing senior debt multiples of 3.0x to 5.0x and mezza-nine debt multiples of 1.0x to 2.0x, depending on the size of the business, the growth rate and the level of recurring revenue. The debt markets are fairly frothy right now, and one would think

leverage can only decline from here, but we have been saying that for the past three years. The biggest challenge to the debt market for the second half of the year will involve pricing, given the potential/probable rate hike(s).

Our areas of concern include: (i) continued high prices for assets and the ability to put money to work in the current environment; (ii) shocks to the market due to interest rates being raised too quickly; (iii) issues caused by sovereign debt defaults; and (iv) any other exogenous macroeconomic issues.

will wynperle, partner, shamrock capital advisors, wwynperle@shamrockcap.com

The current M&A market is attractive for high-quality compa-nies, which are receiving premium valuations, driven by favor-able financing and an abundance of equity capital. Deal terms and process timing are also favorable to sellers for attractive op-portunities. For example, we are seeing products such as repre-sentations and warranties insurance much more frequently.

On the other hand, companies in out-of-favor sectors are receiv-ing little interest, regardless of valuation, creating some compel-ling opportunities. Buyers with sector expertise that are able to bring a vision to accelerate growth to new investments, such as new product launches, expansion into new markets or acquisi-tions, are best positioned to compete in this environment.

Recently, we have been active investors in marketing services, sports and entertainment, communications infrastructure and events. The changes the market is experiencing with the increase in the number of content distribution channels will also create significant opportunities for new investments.

Given our focus on growth companies, Shamrock looks to pro-vide significant financial flexibility in our capital structures, of-ten utilizing less debt than what is available in the marketplace. While it varies significantly by industry, it is not unusual for us to see total leverage available in the 5.5x range, with 4.0x senior. Leverage levels are highly dependent on the credit, and for more cyclical stories, or for companies experiencing lower historical growth, the financing opportunities are much less robust.

While we monitor macroeconomic factors closely, given our con-servative approach to leverage and our focus on companies that

PE Investor Insights on the M&A Market

“The M&A market remains robust (perhaps over-heated), both from a deal flow perspective and a valuation perspective.”

(from left) Rob Kornblum (Avention); Joseph Sanborn (JEGI); Stephanie Newby (Crimson Hexagon); and David Amidon (Burns & Levinson)

JEGI June 2015 Boston Tech Dinner

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PE Investor Insights on the M&A Marketare benefiting from secular trends, we are well positioned to manage through downturns. Given the dynamic nature of the media, entertainment and communications landscape, the im-plications of emerging trends that provide new opportunities, as well as new threats, are key areas of focus. The opportunities cre-ated by changing media consumption habits, as well as mega-mergers of companies in both distribution and content develop-ment, are of particular interest at the moment.

amy margolis, principal, riverside company, amargolis@riversidecompany.com

We continue to see steady deal flow across all of our funds. Valu-ations continue to be at lofty levels with intense competition for the better assets. It’s a great sellers’ market, and it’s not uncom-mon to see double digit multiples. Strategic buyers have partici-pated in many of our portfolio company exits and appear to be eager to find acquisition opportunities to drive growth.

Sectors we are interested in include consumer, health and well-ness, tech-enabled business services, specialty manufacturing, healthcare, and education and training. I wouldn’t say we are a net seller of any particular industry.

On good companies, we are seeing 5.5x to 6.25x or even 6.5x total debt. There is not much difference in those leverage multiples for a mix of senior and mezzanine vs. unitranche. However, indus-tries like oil and gas are not at those multiples, nor is anything else cyclical. We don’t see any significant changes for the rest of the year, although we are paying close attention to Greece, Puerto Rico and other circumstances that could have an impact on the debt markets.

High valuations keep me awake at night.

dan galpern, partner, tzp group, dgalpern@tzpgroup.com

The M&A market continues to be very strong, driven by an abun-dance of leverage, an increasing amount of private equity capital and growing strategic investor activity. It has created a very good market to be a seller, but a challenging market to be a buyer.

The continued growth of tech-enabled services companies is resulting in many new lower middle-market business and con-sumer-focused companies. As this is a core area of investment focus at TZP, we expect to spend a great deal of time here over the next 12 to 18 months.

While we are always looking for ways to create liquidity in our portfolio, we expect to be a net buyer over the next year. We con-tinue to believe there will be great opportunities to invest with forward-thinking entrepreneurs and management teams who are seeking a real partner to help them realize the full potential of their businesses.

In the lower middle-market, we continue to see upward move-ment in the combined senior and mezzanine leverage multiples, reaching 4.5x, and in some cases approaching 5.0x. We are now entering a rising interest rate environment and believe that will continue, on a slow and steady basis, for the next few years. We expect this will have a slight cooling effect on the debt markets, but as long as strong companies are looking for leverage, we be-lieve there will be ample supply at reasonable rates for the fore-seeable future.

In the sectors served by JEGI, our key area of concern centers around the unprecedented level of disruption that technology continues to have on media and marketing services companies. However, we believe that strong entrepreneurs and manage-ment teams who are actively working to stay on, or ahead, of the technology curve impacting their businesses will be well posi-tioned for growth for years to come. n

If you are starting a new company, you better have machine learning, because you’ll be dead in the water if you don’t. It’s really that simple.

Oakes: Where do you see predictive ana-lytics going, in terms of human capital?

Broderick: As we talk to different compa-nies, it’s the place where everybody wants to get to, which makes a lot of sense; it shines the headlights on information you can use to make better business decisions in near term that are going to pay off in

the future. We have been focused on us-ing social information to measure em-ployee engagement.

We have also looked at attrition: who is at risk for leaving, especially among those key roles in the organization. We put to-gether a proactive retention plan, and in a year, we saw a decrease of 76% in attri-tion within those key roles, so $100 million worth of savings to the organization.

Emsley: For the non-exempt employee population, we don’t see a lot of predic-

tive. My message to them: if you want to do predictive next year, start collecting this data now, by category – productivity, performance, attrition – because it’s really 90% about the core data, and do you have enough variables.

Karsan: One example of using predictive is with turnover rates. If you’re looking at turnover, probably eight variables are suf-ficient for your analytics. If you are looking at hiring, you sometimes need as many as 60 variables, depending on the job. n

The Future of Workforce Analytics (continued from page 3)

“Strategic buyers...appear to be eager to find acquisition opportunities to drive growth.”

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Antony Ebelle-Ebanda, Director of HR In-sights, Analytics & Planning, McGraw Hill Financial (moderator): Have we reached a plateau in recruiting technology today, or is there more to come?

Joe Essenfeld, Founder & CEO, Jibe: What companies are using now will not be here in five years. A fundamental shift is hap-pening – job seekers expect a consumer Internet experience, like purchasing on Amazon or paying a bill on American Ex-press. Big brands have invested in con-sumer experience for their corporate sites and apps, but their career sites have not followed. At Jibe, we don’t want to replace the Applicant Tracking System (ATS), we want to serve as the marketing and talent acquisition platform that seamlessly in-tegrates with the back-end ATS workflow and compliance.

Brett Queener, President & COO, Smart-Recruiters: Most ATSs were built 20 years ago and don’t reflect the consumer of to-day. We need to rethink the design prin-ciple, so there is no better opportunity for innovation. At SmartRecruiters, we offer one consolidated platform that includes a complete recruitment marketing solution and a collaborative sales solution on a modern platform, allowing companies to acquire talent like they acquire customers.

Greg Karanastasis, VP, Global Head of Tal-ent Acquisition, Pitney Bowes: Coming from the company side, the buyer side, I have gone through three ATSs in the last 10 years, because most of the technolo-gies are not yet mature. I currently use the ATS as a compliance measure, but it should also act as a marketing channel. I think there will be a lot of innovation in this space.

Ebelle-Ebanda: Ten years ago, we had a big push in social media, and everyone thought that social media was going to revolutionize recruiting at an enterprise level. Do you think the next generation social media solutions today will be solu-tions in themselves or just a channel in the same way that social media is seen as a channel for advertising or e-commerce?

Karanastasis: Social will just be one of the channels going forward, but a big piece. Ten years ago, I subscribed to every large job board. I subscribe to none today, be-cause I use social, search engine optimiza-tion and aggregators. Millennials want to interact through social, but unfortunately it is tough to figure out the ROI. And I’m still trying to figure out how social and the ATS intersect.

Queener: There is not a more social busi-ness process than hiring. Social should be part of the comprehensive marketing channel. It is not effective to just blast on social about a job opening, but there are a couple interesting elements with social – for example, social referrals generate about 25% of our employees.

Essenfeld: Back when Facebook and LinkedIn started, there was a very different perception of how it could work with the enterprise given they had open APIs. Now we see these are really web properties using their members for content. LinkedIn monetized how to sell access to their network, and Facebook doesn’t just let anyone in anymore, so unless you are buying ads, it doesn’t work.

Now social has evolved – there are sites like Glassdoor with active conversations about employers. To be effective, brand recruiters need to participant in the con-versations on the social networks – it isn’t solved with software.

Ebelle-Ebanda: Will the next generation of ATS be influenced by the new workforce, or will traditional big companies continue to drive changes?

Essenfeld: The concept of an ATS has to go away. Millennials expect instant feed-back and instant conversation and vis-

ibility so the recruiting pro-cess needs to fundamentally shift, all the way from out-reach market-ing, to apply-ing, through to hire.

Karanastasis: I am still in the mindset that an ATS will exist, but it’s about keeping it simple and a consumer grade experience. I was at Pitney Bowes 10 years ago, left for eight years and now I’m back – the com-pany has just kept adding layers to the ATS and hiring process, but now I’m going to start making things more simple.

Ebelle-Ebanda: Where are we in the adop-tion of analytics and measuring the valid-ity or the efficiency of an ATS system?

Essenfeld: Right at the beginning – cli-ents are just starting to wrap their heads around ROI on dollars spent for media. There is a seed of an idea to look at the value of talent pools – understanding how open recs are tied to departments and in-coming applications. You might take your entire budget and spend it on software engineers if you have enough marketing candidates coming organically. But I don’t think that’s visible yet with most of the current software, so it is almost impos-sible to navigate unless you have in-house software engineers to do it.

Queener: I agree, and HR doesn’t normally fall at the top of the IT priority list. A typi-cal client has a talent pool of 20,000 and hires 200. They want to know who in the 20,000 looks exactly like those 200 be-yond resume data, as well as where they can get more of those than are in their current talent pool. If we can get there, then I think we have done something meaningful.

Karanastasis: We’re at the beginning, pull-ing from so many different data points and different systems to see the big pic-ture: where am I spending my branding dollars; where am I spending my recruit-

Beyond the ATS – Talent Acquisition/Recruiting for Today’s World

(from left) Greg Karanastasis (Pitney Bowes); Brett Queener (SmartRecruiters); and Joe Essenfeld (Jibe)

Antony Ebelle - Ebanda (McGraw Hill Financial)

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JEGI H1 2015 M&A Overviewment dollars; how is that translating to productivity; what am I spending in devel-opment costs with onboarding, compen-sation, etc.? It’s difficult.

Ebelle-Ebanda: Is there an opportunity for a best in breed organization to focus on a specific segment and make that whole ATS experience much more engaging and valuable to the candidate?

Essenfeld: We are placing our bet that there are going to be two main platforms for the short term: one for marketing and candidate experience, and one for compli-ance and workflow.

Karanastasis: At the end of the day, com-panies don’t want to deal with the head-ache of having multiple ATSs. Last year, we were operating in 28 markets and had 28 career sites. Now we are down to one. With multiple systems, you have no idea of your ROI.

Ebelle-Ebanda: Do we currently have the right staff to embrace the transformation and simplification of the HR function?

Karanastasis: I’m not concerned about HR, I’m more concerned about the managers. HR is ready to adopt more standards and operate more like a finance organization and a marketing organization with less of the emotions. So, for me, it’s about the business not being ready because of all the other things that are happening from a change management perspective.

Queener: Our technology was built in the past three or four years. It’s modern; it has APIs; it understands UX. Executives should demand more from their HR and recruit-ing organization, but likewise, they should support them more. What needs to hap-pen is the shared accountability between the hiring manager and recruiting.

Essenfeld: When you’re building software, it’s not just about looking good, it’s under-standing how it will be used. I think that’s been one of the most innovative changes in the last decade. So if we leverage that, it’s not about throwing more people at the problem, it’s using better, smarter and simpler technology instead. n

M&A in the media, information, market-ing, software and tech-enabled services sectors saw robust activity through the first half of 2015, with 1,125 transactions announced at a total value of $53.7 billion. Deal activity and value sustained the brisk levels of H1 2014, which saw 1,078 deals to-taling $56.3 billion.

large deals in h1 2015These sectors saw 11 announced transac-tions surpass $1 billion in value during the first half of 2015, including the:

• Verizon $4.8 billion acquisition of digital media company AOL

• Cox Automotive $4.5 billion acquisition of DealerTrack Technologies, provider of web-based marketing solutions to the automotive retail industry

• Verisk Analytics $2.8 billion acquisition of Wood Mackenzie, global energy, met-als and mining research consultancy

• SS&C Technologies $2.5 billion acquisi-tion of Advent Software, provider of ver-tical applications for financial services

• Bain Capital $2.4 billion acquisition of Blue Coat Systems, provider of security and networking solutions

• Expedia $1.7 billion acquisition of online travel site Orbitz

• LinkedIn $1.5 billion acquisition of Lyn-da.com, provider of online educational videos for individuals to learn business, software, technology and creative skills

• Raytheon $1.3 billion acquisition of Web-sense, provider of security software

• TPG Capital, Fosun Industrial Holdings and Caisse de dépôt et placement du Québec joint $1.2 billion acquisition of Cirque du Soleil, creator of consumer entertainment shows

• EMC $1.2 billion acquisition of Virtu-stream, provider of cloud computing management software and services

• Lexmark International $1 billion acquisi-tion of Kofax, provider of business pro-cess management software

software & tech-enabled servicesLeading all sectors in number and value of transactions, Software & Tech-Enabled

Services saw 708 deals valued at $28.4 billion for the first half of the year. Appli-cation software was the most active sub-sector, accounting for one-third of deal volume. IT services and distribution (18%) was the second most active sub-sector, followed by mobility (11%), IT outsourcing (9%) and information management (8%).

marketing services & technologyAs the second most active sector, Market-ing Services & Technology saw 278 trans-actions worth $12.7 billion in H1 2015. Just over half of sector transactions occurred in the traditional agency, digital agency and marketing tech sub-sectors.

However, marketing tech was the leader by far in deal value. Besides the Dealer-Track acquisition by Cox, other large transactions in this sub-sector included Twitter’s acquisition of TellApart, a predic-tive marketing platform for shoppers with cross-device retargeting, for $533 million, and Pitney Bowes’ acquisition of Border-free, provider of cross-border e-commerce solutions, for $465 million.

Data & analytics also accounted for a sub-stantial amount of deal value in H1 2015, with MasterCard’s acquisition of predictive analytics software provider Applied Pre-dictive Technologies for $600 million and Kantar/WPP’s investment in digital media measurement and analytics firm comScore for approximately $255 million. n

has been soldto

March 2015

a leading provider of digitalmarketing and online customer

growth services

June 2015

has sold its

to

Fiduciary Services andCompetitive Intelligence

Businesshas been sold

to

February 2015

thought leadership forums forbrands, agencies and mobile leaders

Mobile Motion, LLCfounder of

has been sold

to

March 2015

a cloud-based provider of globalsourcing and collaborative

supply chain software solutions

July 2015

has been soldto

an international SaaS platformdelivering omnichannelaudience engagement

July 2015

has been soldto

and a portfolio company of

the leading provider of businessinformation and marketing

solutions to the UKagricultural sector

has been sold

to

July 2015

a digital strategy andexperience design �rm

has acquired

July 2015

an experiential marketing companyspecializing in live media, digitaland traditional advertising, brandenvironments and creative services

JEGI – The Consistent Leader in Media, Marketing, Information, Software &

Tech-Enabled Services M&A Transactions

jegi’s client is mentioned first in each of the above transactions.

Bloomberg M&A League Tables, 2010-2014 top advisors serving the us media, marketing and internet sectors*

2010-2014 (5-Year)2013-2014 (2-Year)

Rank Advisor # Deals

1 Jordan Edmiston Group 292 Petsky Prunier 273 JP Morgan 204 Moelis & Co 195 Morgan Stanley 186 Goldman Sachs 156 RBC Capital Markets 158 Bank of America Merrill Lynch 139 Evercore Partners 1210 Houlihan Lokey 11

Rank Advisor # Deals

1 Jordan Edmiston Group 702 Petsky Prunier 573 Goldman Sachs & Co 424 Morgan Stanley 415 Bank of America Merrill Lynch 386 RBC Capital Markets 347 GCA Savvian 338 JP Morgan 329 Evercore Partners 269 Barclays 26

* rankings by number of deals completed.

June 2015

has sold its industry-leading brands

a portfolio company of

to

Architectural Record, Engineering News-Record (ENR),

and SNAP

has been sold

to

January 2015

a leading information and marketingplatform serving the insurance,

�nancial and legal markets

Wilma Jordan Founder & CEO

wilmaj@jegi.com

Tom Pecht Managing Director

tomp@jegi.com

Scott Peters Co-President

scottp@jegi.com

David Clark Managing Director

davidc@jegi.com

Tolman Geffs Co-President

tolmang@jegi.com

Joseph Sanborn Managing Director josephs@jegi.com

Sam BarthelmeDirector

samb@jegi.com

Richard Mead Managing Director richardm@jegi.com

Adam Gross Chief Marketing Officer

adamg@jegi.com

Amir Akhavan Managing Director

amira@jegi.com

Tom Creaser Executive Vice President

tomc@jegi.com

Bill HitzigChief Operating Officer

billh@jegi.com

Jeff Becker Managing Director

jeffb@jegi.com

BostonCIC Boston

50 Milk Street, 16th Floor Boston, MA 02109

Phone: +1 (617) 294-6555

Atlanta40 Wallace Road Buford, GA 30519

Phone: +1 (770) 932-8700

London (JEGI Affiliate)90 Long Acre

London WC2E 9RA

Phone: +44 20 3402 4900

Bangalore (JEGI Affiliate)Akash Embassy, 3rd Floor, #9, 3rd Cross

Artillery Road, Ulsoor Bangalore 560 008

Phone: +91 80 42036793

New York (Headquarters)150 East 52nd Street

18th Floor New York, NY 10022

Phone: +1 (212) 754-0710