I N F O R M A T I O N T E C H N O L O G Y C O M M U N I C A T I O N S H E A L T H C A R E T E C H N O L O G Y D I G I T A L M E D I A
What’s The New Deal In E-Commerce?
Montpellier, 2004
BROADVIEW INTERNATIONAL, A DIVISION OF JEFFERIES INTERNATIONAL LTD, AUTHORISED AND REGULATED BY THE FINANCIAL SERVICES AUTHORITY
Internet: ACT II
Ben Tompkins
Managing Director (London)
Pptname 2 01/07/98
Broadview Overview
Leading global M&A advisor serving the digital media, IT, communications and healthcare technology industries
As a division of Jefferies, Broadview provides access to a full suite of investment banking services and capabilities
Broadview’s team of 90 bankers is one of the largest dedicated to the technology industry
30-year track record bringing superior industry expertise and access
Over 430 M&A transactions valued at more than $62 billion since 1998*
Over $1.6 billion raised in strategic private placements over the same period*
* As of August 2004, includes services provided by Broadview International LLC, Broadview International Ltd., and Broadview International, A Division of Jefferies & Company, Inc.
Pptname 3 01/07/98
Leadership In Digital Media Transactions
has been acquired by
$150,000,000April 2003
€475,000,000April 2004
has been acquired by
€14,000,000Pending
has sold a minority interest in
StepStone Deutschland AGto
Axel Springer
ConfidentialOctober 2004
has been acquired by
€46,000,000July 2004
has been acquired by
Follow-On Public Equity OfferingLead Manager
$56,000,000December 2003
Follow-On Public Equity OfferingCo-Manager
$75,900,000July 2004
ConfidentialPending
has agreed to acquire
$80,600,000October 2004
Initial Public OfferingCo-Manager
China Finance Online Co. Limited
ConfidentialMay 2004
has been acquired by
has been acquired by
C$153,000,000April 2004 September 2003
has sold substantially all ofits operating assets to
Pptname 4 01/07/98
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All Internet Indexes Have Outperformed The NASDAQ In The Last 12 Months, Although It’s Been A Rocky Ride
+35%-40%
Daily Indexed Price Performance of Worldwide Consumer Internet SegmentsNovember 22, 2003 – November 22, 2004
Indexed prices are equally weighted.Commerce / Retail Composite Includes: ALOY, AMZN, BFLY, DSCM, ECST, FLWS, NFLX, NILE, OSTK, PCLN, PRVD, REDEContent / Media / Portal Composite Includes: CNET, EDET, KNOT, IVIL, JUPM, LOUD, MKTW, RATE, RNWK, T-Online, Tiscali, TSCM, YHOO Marketing Services Composite Includes: AQNT, ASKJ, CSAV, DCLK, DIGI, DTAS, FWHT, GOOG, INSP, LOOK, MAMA, MCHX, NTRT, RCOM, SHOP, TCOW, TFSM, TRFX, VCLK, WSSICommerce/ Listings Composite Includes: ABTL, EBAY, EBKR, HOMS, IACI, LMIN, MNST, ORBZ, STMP, YPNTChina Composite Includes: CTRP, JOBS, JRJC, KONG, LONG, LTON, NTES, SINA, SNDA, SOHU, TOMO
Index Performance
Marketing Services 55.0%Content & Services 27.4%Commerce / Retail 25.0%Commerce / Listings 17.2%NASDAQ 7.1%China 1.8%
Pptname 5 01/07/98
The Leading US Buyers Are Back In The Market …
Europe is not a problem any more
— Now profitable and twice the size
— New European-based management
Fully integrated Overture – great fit with TradeDoubler
Very successful IPO and impressive execution (gmail, new paid search functionality, localisation search etc)
Strong focus on international expansion
— Head of M&A is moving to Europe
Done with restructuring and is now focused on growth again
Clearer ‘buy-in’ at TW
Focus on expansion within marketing services
— Acquired advertising.com
Pptname 6 01/07/98
… And There Are Some Interesting New Entrants
Highly valued Japanese mobile services company Using stock and cash to diversify geographically
— Zingy— iTouch
US payments / security technology provider Acquired Jamba! Focused on building digital media content that drives
payments
Back in acquisition mode Renewed interest in Europe post Active Hotels deal
— Telitas— Mobivillage
Pptname 7 01/07/98
Broadview Forecasts Over 50 Digital Media M&A Deals In 2004 – Up Over 100%
1) Broadview Estimate
Q1
Q2
Q3
Q4
NASDAQ
Worldwide Internet Media & Services M&A Transactions,Announced Equity Consideration $20 Million Or Greater
January 1, 1999 – November 22, 2004
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Pptname 8 01/07/98
… And There Have Been Some High Value Digital Media M&A Exits
acquired by acquired byacquired by acquired byacquired by
Value:
$575m
P/R:
12x
P/EBIT:
40x
Currency:
Cash
Value:
$57m
P/R:
9x
P/EBIT:
NM
Currency:
Shares
Value:
Conf.
P/R:
8x
P/EBIT:
23x
Currency:
Cash
Value:
$161m
P/R:
7x
P/EBIT:
15x
Currency:
Cash
Value:
$273m
P/R:
3x
P/EBIT:
NM
Currency:
Cash/
Shares
Pptname 9 01/07/98
The IPO Market Is Demonstrating a Recovery on a Selective Basis for High Quality Issuers
Tech IPO Activity – Number of Transactions
USWestern Europe
Median IPO on NASDAQ has had the following:
— Revenue of $73 million
— Revenue growth of 54%
— EBIT margin of 7.5%
— 4 quarters of profitability
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Pptname 10 01/07/98
Digital Media IPOs In 2004 Have Received A Mixed Reception
Date: 18/08/04
Offering Amount: $1,700m
TTM Revenue: $2,258m
TTM RevenueGrowth: 157%
Quarters ofProfitability: 10
TTM EBIT Margin: 8.4%
% Changefrom IPO: +98%
Date: 25/10/04
Offering Amount: $123.7m
TTM Revenue: $84.0m
TTM RevenueGrowth: 113%
Quarters ofProfitability: 5
TTM EBIT Margin: 11.1%
% Changefrom IPO: +55%
Date: 28/09/04
Offering Amount: $88.8m
TTM Revenue: $25.5m
TTM RevenueGrowth: 376%
Quarters ofProfitability: 1
TTM EBIT Margin: NM
% Changefrom IPO: +53%
Stock Chart ($)
Aug 04 Nov 04
200Stock Chart ($)
Nov 04Oct 03
35 Stock Chart ($)
Nov 04Sep 04
35
Pptname 11 01/07/98
As A Result Of High Value ‘Exits’, Investment Is Returning
received investment from
Target:Mobile games provider
Amount raised: $19m (August 2004) adding to $44m received in June 2004 by General Catalyst Partners, Bessemer Venture Partners and eFund LLC
received investment from
Target:Mobile games provider
Amount raised:$27m (August 2004)
received investment from
Target:Wireless games publisher
Amount raised:$20m (Jul 2004)
received investment from
Target:Developer of mobile multimedia entertainment
Amount Raised: $18m (November 2004)
To date Digital Bridges has raised $56.4m through Apax and Argo
and
Pptname 12 01/07/98
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What Buyers Want: Back To The Future
ADVERTISING ADVERTISINGSUBSCRIPTION / LISTINGS / E-COMMERCE
Pptname 13 01/07/98
What’s Hot For 2005?
Advertising is back
Mobile media is here (finally) … but get ready for a rough ride
Search, in all its forms, becomes more pervasive
— Contextual search
— Location search
— etc.
Payments technology further enables all forms of ecommerce
I N F O R M A T I O N T E C H N O L O G Y C O M M U N I C A T I O N S H E A L T H C A R E T E C H N O L O G Y M E D I A