1ST HALF 2019 KEY HIGHLIGHTS• The largest sponsored transaction in the Software horizontal
in 1st Half 2019 was the acquisition of Ultimate Software by
an investor group led by Hellman & Friedman for $10.82 billion.
Ultimate Software is a provider of cloud-based human capital
management (HCM) solutions.
• Regarding the Online & Mobile horizontal, the largest sponsored
transaction in 1st Half 2019 was Apollo Global Management’s
announced acquisition of Shutterfl y, an online manufacturer and
retailer known for its fl agship photo book line, for $2.78 billion.
Apollo also acquired Snapfi sh, another digital photo printing
service, during the half year period and plans to merge the two
companies.
• As for the Finance vertical, the largest sponsored transaction
in 1st Half 2019 was Thoma Bravo’s announced acquisition of
Ellie Mae, a software provider for the residential mortgage
sector, for $3.7 billion.
1ST HALF 2019 KEY TRENDS• Total transaction volume in 1st Half 2019 improved by 11 percent
over 2nd Half 2018, from 470 to 523.
• Total transaction value in 1st Half 2019 remained nearly
constant over 2nd Half 2018, at 45.70 billion.
• The median revenue multiple rose from 3.0x in 2nd Half 2018
to 3.7x in 1st Half 2019. The median EBITDA multiple declined
from 14.8x in 2nd Half 2018 to 12.3x in 1st Half 2019.
M&A MARKET OVERVIEWBerkery Noyes tracked 2,248 private equity transactions between
2017 and 1st Half 2019, of which 297 disclosed fi nancial terms,
and calculated the aggregate transaction value to be $149.06 billion.
Based on known transaction values, we project values of 1,951
undisclosed transactions to be $61.70 billion, totaling $210.76
billion worth of transactions tracked over the past two and a half
years.
Disclosed median revenue multiple for all segments combined in this
report in the last 30 months were 2.7x revenue and 12.8x EBITDA.
PRIVATE EQUITY INFORMATION INDUSTRYFinancially Sponsored Transactions within the Information Industry1ST HALF 2019 :: Mergers and Acquisitions Trend Report
Presented by Berkery Noyes 1
Figure 1. 2017-2019 value and volume comparison.
Figure 2. 2017-2019 median: revenue, value, EBITDA comparison.
2
Transaction Analysis :: January 1, 2019 – June 30, 2019
M&A Dynamics by Acquirer Type :: January 1, 2019 – June 30, 2019
M&A Dynamics by Transaction Type and Industry
Figure 5. Presents the transaction volume by target segment for private equity transactions in the Information Industry. Note: Financially sponsored transactions include private equity backed strategic acquisitions.
ValueValue ValueVolume Volume VolumeMedia & Marketing Online & Mobile Software
89 %
11 % 16 %
84 %
45 %
55 %
79 %
21 %
51 %
49 %
74%
26 %
Strategic TransactionsFinancial Transactions
Figure 3. Shows the distribution of private equity transactions in the Information Industry based on publicly available information and Berkery Noyes estimates. Using a logarithmic scale, we determined that nearly one-third of companies purchased had transaction values of $12.2 million to $148.4 million. Based on this data, we estimate the total transaction value of deals done in 1st Half 2019 at $45.7 billion.
* Indicates largest transaction in the industry from Jan. 1, 2019 to June 30, 2019.
Distribution Table
Figure 4. Presents the data depicted in the bell curve histogram.
Purchaser Analysis
Transactions Involving an Online Component
©2019 Berkery Noyes 3
Top Ten Notable Transactions - 1st Half 2019
Figure 7. Presents the median enterprise value/revenue multiples paid for private equity transactions in the Information Industry from January 1, 2017 to June 30, 2019 based on publicly available data.
Figure 6. Lists the top ten transactions for 1st Half 2019 and calculates their aggregate transaction value as a percentage of the total aggregate transaction value as shown in Figures 1 & 4.
d b d d d
Median EV/Revenue Multiples By Size
Figure 8. Percentage of total private equity transactions in the Information Industry where the target company conducts the majority of their business online. The total percentages are measured by half year from January 1, 2012 to June 30, 2019.
Transaction Percentages of Online Targets
Online Targets Other Targets
2 First Quarter 20112 First Q2 st Quarter 2011rst Qu ereree
RECENT FINANCIALLY SPONSORED TRANSACTIONS
4 ©2019 Berkery Noyes
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berkerynoyes.com | 212.668.3022
Founded in 1980, Berkery Noyes is a leading independent investment bank serving the information, software, marketing, and technology industries. Th e fi rm has initiated, managed, and
closed more than 500 merger and acquisition transactions for privately held and publicly traded companies in the healthcare,
fi nancial services, and education markets.
Berkery Noyes Securities LLC assists middle market companies with raising growth capital in the debt and equity markets.
MANAGING DIRECTORS
VINEET ASTHANAMedia and Technology Group
RAJAT BANGAREducation Group
BRIAN DECICCOMedia Group
MICHAEL GOETTEMOELLERIT Services, Security & Automation, and Logistics & Supply
Chain Group
JOHN GUZZO Financial Technology Group
JONATHAN KRIEGERHealthcare Group
MARTIN MAGIDACorporate Finance Group
THOMAS O’CONNORHealthcare Group
PETER OGNIBENEFinancial Technology Group
JEFFREY SMITHHealthcare Group
JASON WHITEConsumer Group
MARY JO ZANDYEducation, Media, and Generalist Groups
PARTNERS
JOSEPH BERKERYChief Executive Offi cer
JAMES BERKERYManaging Partner
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.
For current intelligence on Mergers and Acquisitions activity in the Information Industry please visit our online service at
www.mandasoft.com
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