M&A Snapshot Q3 2015

Web: architectpartners.com | Email: info@architectpartners.com

M&A SNAPSHOT
Q3 - 2015
2013
Q3

Total M&A Exits (a)

406

2015

2014
Q4

416

Q1

Q2

Q3

Q4

Q1

Q2

Q3

494

464

509

539

639

785

604

86

80

Core M&A exits up 8%

year-over-year.
Down 7% from Q2.

Core M&A Exits (b)

70

61

74

63

76

45

41

$20.0

$18.5

Consideration
Exchanged

$13.8

$12.3
$8.1

$9.6

$20.5

$13.5

$9.4

$billions (b)
Average Consideration $256mm.
Up 11% Year-OverYear

Proportion Premium Value (c)

% of Total M&A Exits

5%

2%

3%

4%

4%

4%

4%

3%

3%

% of Core M&A Exits

21%

32%

42%

17%

18%

29%

27%

20%

24%

Source: Architect Partners LLC, Capital IQ, company filings and public information
a) M&A exits within Mobile | Internet | Digital Media sectors
b) Core M&A exits are defined as transactions with announced or estimated values between $25 million and $1 billion in consideration, as these typically represent successful businessbuilding endeavors
c) Premium value transactions are defined as greater than 5 times invested equity capital or 5 times estimated last twelve months revenue (LTM)

M&A BY SECTOR

Service
App
Commerce Provider
Dev Consumer
Application
12%
3%2%
Analytics
8%
Application
11%
3%

Q3 - 2015
Media

Security

6%

Network
Infrastructure

8%

26%

Enterprise
Application

14%
8%

Core Transactions by Sector

Hardware
Digital
Marketing

Number of Deals
by Sector
SECTORS

$1,037

$6,145

Total sector M&A value in $mm

$534 $1,704 $88 $1,268

$2,028

$2,215

$1,892

$2,161

Source: Architect Partners LLC, Capital IQ, company filings and public information

$1,418

Consumer Application
Enterprise Application
Analytics Application
Network Infrastructure
App Development
Security
Commerce
Digital Marketing
Media
Hardware
Service Provider
3

PREMIUM VALUE DEALS

Q3 - 2015

Premium Value is defined as greater than 5 times invested equity capital

or 5 times the estimated last 12 months revenue (LTM)

Target | Acquirer

x LTM Revenue

Xoom | PayPal

LTM revenue multiple of

the target at the time of
acquisition

Rentrak | Comscore
GT Nexus | Infor
Yodlee | Envestnet
Elemental Technologies | Amazon*
0

10

LTM revenue multiple of

the acquirer at the time
of acquisition

Target | Acquirer x Invested Capital

Caspida | Splunk
Ingresso.com.br | Fandango
1010data | Advance Communication Corp.
pepcom | Tele Columbus AG
Leetchi SA | Crdit Mutuel Arka
Mapsense | Apple
Runtastic GmbH | Adidas
Business Insider | Axel Springer
Unruly Group | News
OrderUp | Groupon
Adallom | Microsoft
Shenzhen Xing Fei | Fujian Start Group
Teddle | Helpling
Pebbles LTD. | Oculus VR
0

Source: Architect Partners LLC, Capital IQ, company filings and public information
* revenue multiple reported to be between 5x-10x LTM revenue

10

12

14

16

18

20
4

MOST ACTIVE
ACQUIRERS LTM
(In terms of number of Acquisitions)

1.

2.
6/15 | $2.8B
Adallom
Adxstudio
Double Labs
FieldOne Systems
Incent Games
Volometrix

6.

3.

4.

5.

2 / 9 | $320mm

3 / 9 | $950mm

4 / 8 | $962mm

Jibe Mobile
Pixate

Appthwack
Elemental Technologies
Safaba Translation

Appcore
Compose
Merge Healthcare
Strongloop

7.

8.

9.

1 / 7 | $774mm
MaintenanceNet

10.

1 / 7 | $60mm

2 / 6 | $1.4B

0 / 5 | $14.2B

0 / 5 | $2.5B

0 / 5 | $533mm

Pebbles LTD.

MODEST, Inc.
Xoom

None

None

None

Number of new deals in Q3 / total deals last 4 quarters | total spend last 4 quarters (a)
a) A number of transactions do not disclose acquisition price, so aggregate value of deals over the last twelve months is likely understated.
Source: Architect Partners LLC, Capital IQ, company filings and public information

CORE TRANSACTIONS
Q3 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Adidas

Runtastic GmbH

239

Provides a suite of fitness applications, hardware and services. Based

in Pasching bei Linz, Austria

Advance Communication
Corp

1010data

500

Provides big data discovery and data sharing solutions for business
and technical users. Based in New York, New York.

Amadeus I.T. Group

Navitaire

830

Delivers technology solutions for airline, rail, and bus operators

worldwide. Based in Minneapolis, Minnesota.

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Amazon Web Services

Elemental Technologies

500

Develops and supplies software-defined video processing solutions for

pay TV operators, content programmers, broadcasters, and enterprise
customers worldwide. Based in Portland Oregon

Anhui Deli Household

Glass Co., Ltd.

Guangzhou Chuangsi
Information Technology

394

Develops Web games, including Lie Yan. The company is based in

China.

AOL Inc.

Millennial Media

253

Owns and operates fashion and beauty, entertainment, and home

design Websites for women in the United States. Based in San Carlos,
California.

Apple Inc.

MapSense

28

Oers mapping engine and developer tools to build applications for

streaming datasets. Based in San Francisco, California.

Avendra Group

BuyEcient

27

Operates a web-based purchasing platform for hospitality industry.

Based in San Clemente, California.

Axel Springer

Business Insider

442

Operates a business news Website for customers in India and

internationally. Based in New York, New York.

Beijing Philisense
Technology Co

Interworld Technology
Development

85

Designs, develops, and operates platforms for online education. Based

in Shenzhen, China.

BlackBerry

Good Technology

661

Provides secure mobility solutions for enterprises and governments

worldwide. Based in Sunnyvale, California.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015
BUYER

Premium Value M&A

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

Blackboard

Smart, LLC

190

Provides a student billing and payments processing platform through

its SaaS school accounts receivables oering for independent private
and faith based schools in the United States. Based in Woodbridge,
New Jersey.

CEB Inc.

Wanted Technologies Corp.

34

Provides real-time business intelligence for the talent marketplace

primarily in Canada and the United States. Based in Quebec City,
Canada.

Cisco Systems

MaintenanceNet

139

Develops and provides service revenue generation solutions. Based in

Carlsbad, California.

AP M&A
ALERT

VC-BACKED

ComScore

RenTrak Corporation

850

Oers a SaaS technology that merges television viewership

information from approximately 117 million TVs and devices with
consumer behavior and purchase information across various platforms,
devices, and distribution channels.

Crdit Mutuel Arka

Leetchi SA

56

Operates a Website that helps international users to collect and

manage money for group gifts and events. Based in Paris, France

Daimler AG

HERE Corporation

3,069

Provides maps and other location content for navigation, locationbased services, and mobile advertising applications around the globe.
Based in Chicago, Illinois.

Diodes Inc.

Pericom Semiconductor

379

Designs, manufactures, and markets digital, analog, and mixed-signal

integrated circuits (ICs); and frequency control products (FCPs) used
in electronic systems worldwide. Based in Milpitas, California.

DTS Inc.

Ibiquity Digital

172

Develops and licenses digital HD Radio technology for AM and FM

audio and data broadcasting. Based in Columbia, Maryland.

Entertainment One

Astley Baker Davies

212

Produces and creates animation videos and series. Based in London,

United Kingdom.

Envestnet

Yodlee

52

Operates a technology and applications platform that provides digital

financial services in the cloud. Based in Redwood City, California.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Ericsson

Envivio

125

Provides software-based IP video processing and distribution

solutions that enable the delivery of high-quality video to consumers
worldwide. Based in San Francisco, California.

Fandango Media

Ingresso.com.br

67

Sells tickets for movies, theaters, and entertainment events through

Internet. It also oers box oce software. Based in Brazil.

Fujian Start Group

Shenzhen Xing Fei

Technology

235

Develops and manufactures cell phones and smartphones of 2G, 3G,

3.5G, and 4G. Based in Beijing, China.

69

Operates an online food ordering platform for customers to discover

restaurants and order food for takeout and delivery in the United
States. Based in Baltimore, Maryland.

Groupon

OrderUp

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Havas

Fullsix

75

Operates as an interactive relationship marketing company. The

company designs, builds, and executes marketing programs that
enable clients to build relationships with their customers through
various interaction channels. Based in Paris, France.

Helpling

Teddle

36

Oers a platform that allows users to find, book, and pay for cleaners
online. Based in London, United Kingdom.

Hubei Huachangda
Intelligent Equipment

Jiangsu ShiDeWei Network

Technology

236

Provides mobile internet services including mobile value added and

marketing services. Based in China.

Hunan Kaimeite Gases Co

Shenzhen Sontahitec
Industry Development

200

Develops Internet education industry's software. Based in Shenzhen,

China.

Infor

GT Nexus, Inc

675

Develops and operates a cloud-based business network and execution

platform for global trade and supply chain management. Based in
Oakland, California.

IBM

Merge Healthcare

962

Develops software solutions that facilitate the sharing of images to

create an electronic healthcare experience for patients and physicians
worldwide. Based in Chicago, Illinois.

Kaiser (China) Holding

Co

Sichuan Tianshang Youjia

Network Technology

191

Develops and operates mobile online games across China. Based in

Shanghai, China.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

Laberie Holdings

Tech Field Holdings

150

Creates free-to-play social and multiplayer games for mobile devices.

Based in Seattle, Washington.

Leyard American
Corporation

Planar Systems Inc

37

Develops, manufactures, and markets electronic display products and

systems. Based in Beaverton, Oregon.

Match.com

PlentyOfFish Media

565

Operates an online dating site for singles and personals. It provides

Plentyosh, a site that matches users with online daters that meet
their emotional needs. Based in Vancouver, Canada.

MBS Holdings

Alteva

305

Provides unified communication solutions for small, medium, large,

and enterprise businesses. Based in Philadelphia, Pennsylvania.

MediaTek Capital Co

Chingis Technology
Corporation

27

Engages in the development of PMOS nonvolatile memory technology

in Taiwan. Based in Hsinchu, Taiwan.

Microsoft

Adallom, Inc.

320

Operates as a cloud application security company that provides cloud

access security brokerage services. Based in Israel.

87

Owns and operates Electronic Sports League (ESL), an online portal

for computer gamers worldwide. It creates and delivers gaming
content for various media; and provides marketing services. Based in
Cologne, Germany.

404

Designs, manufactures, and markets digital, analog, and mixed-signal

integrated circuits (ICs); and frequency control products (FCPs) used
in electronic systems worldwide. Based in Milpitas, California.

Modern Times Group

Montage Technology
Group

Turtle Entertainment GmbH

Pericom Semiconductor

MStar Semiconductor,
Inc.

Ili Technology Corp

30

Nanjing Kangni
Mechanical & Electrical
Co

Huangshi Bangke Technology

Co

94

NetPosa Technologies,
Ltd

VIDEOTREC Industrial Co.

33

Designs and manufactures small driver, mid/large driver, and touch

that are used in various end applications, including mobile phones.
Based in Jhubei City, Taiwan.
Operates as a software company and provides products and services
for areas such as intelligent automation technology, laser image
sensing and identification technology, and logistics equipment
technology. Based in Huangshi, China.

AP M&A
ALERT

VC-BACKED
x

Develops, manufactures, and markets CCTV system surveillance

products. Based in Shenzhen, China.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015
BUYER

News Corp

Premium Value M&A

TARGET

Unruly Group

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

177

Develops application that allows advertisers to maximize the social

impact of their video content by evaluating, improving, and predicting
the viral potential of video advertisements. Based in London, United
Kingdom.

AP M&A
ALERT

VC-BACKED

Ngai Shun Holdings

Anhui LaiWang Technology

839

Owns and operates an online e-commerce platform to link up

suppliers, distributors, and domestic retailers and a lending platform
to provide finance solutions to suppliers and manufacturers. Based in
Hefei, China.

Oculus VR

Pebbles LTD.

60

Develops motion sensors that display physical objects within the

digital space. Based in Israel.

Omron Management
Center of America

Adept Technology Inc.

199

Designs, manufactures, and sells industrial and mobile robots for

electronics, food, semiconductor, warehouse/logistics, medical, and
automotive markets worldwide. Based in Pleasanton, California.

Patriot National, Inc.

Global HR Research

42

Develops and provides technology solutions for talent acquisition,

assessment, and screening. Based in Fort Myers, Florida.

PayPal, Inc.

Xoom Corporation

850

Provides digital consumer-to-consumer online money transfers

services worldwide. T Based in San Francisco, California.

Prosper Marketplace, Inc.

BillGuard, Inc.

30

A personal finance security service that analyzes various consumer

billing complaints. Based in New York, New York.

Rockwell Collins

International
Communications Group, Inc.

64

Designs, develops, and manufactures communications systems and

solutions. Based in Newport News, Virginia.

Samsung

SECUi Corp.

81

Provides information protection solutions in South Korea.Based in

Seoul, South Korea.

Seagate Technology

Dot Hill Systems

608

Designs, manufactures, and markets a range of software and

hardware storage systems for the entry and mid-range storage
markets worldwide. Based in Longmont, Colorado.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

10

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015
BUYER

Premium Value M&A

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Oers wireless voice and digital data personal communication

products and services primarily to retail and business customers
under the NTELOS Wireless and FRAWG Wireless brands. Based in
Waynesboro, Virginia.

Shenandoah
Telecommunications Co.

NTELOS Holdings Corp.

730

Siris Capital Group, LLC

Premiere Global Services, Inc.

1,000

Smart Choice Store

Company Limited

Strong Media Group Ltd.

33

Provides pay television services throughout the United Kingdom.

Based in Edinborough, United Kingdom.

Snapchat

Looksery, Inc.

150

Develops facial tracking and modification application for real-time

video communication. Based in Castro Valley, California.

Provides collaboration software and services in North America,

Europe, and the Asia Pacific. Based in Atlanta, Georgia.

Splunk, Inc.

Caspida, Inc.

190

Detects threats produced by a user, a device, or an application by

using machine learning, behavior modeling, peer group analysis, realtime statistical analysis, collaborative filtering, and other techniques.
Based in Palo Alto, California.

SS&C Technologies
Holdings

Primatics Financial

122

Provides integrated solutions and advisory services for complex

business problems in the financial services industry. Based in McLean,
Virginia.

Sterlite Technologies

Elitecore Technologies

27

Provides OSS/BSS and Internet security solutions to configure,

manage, and monitor network and subscriber activities. Based in
India.

Synacor, Inc.

TZ Holdings

24

Develops an open source email and unified collaboration platform/a

client and server platform for next-generation messaging and
collaboration needs to administrators and their end users. Based in
Frisco, Texas.

Technicolor SA

The Mill (Facility) Limited

292

Produces and collaborates visual eects projects for the advertising,

games, film, television (TV), and music industries in the United
Kingdom and internationally. Based in London, United Kingdom.

688

Provides access to cable television, radio, and Internet to household

customers. It operates digital cable networks that oer access to
various television and radio programs and channels, including
programs in foreign languages. Based in Bavaria, Germany.

Tele Columbus AG

Pepcom GmbH

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

11

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

AP M&A
ALERT

Tessera Technologies Inc.

Ziptronix, Inc.

39

Develops low-temperature direct bonding technologies for wafer-level

or die-level bonding. Based in Raleigh, North Carolina.

The Carlyle Group LP

Novetta Solutions, LLC

650

Provides advanced analytics software and solutions to detect threat

and fraud, and protect high value networks for government and
commercial enterprises worldwide. Based in McLean, Virginia.

The Descartes Systems

Group Inc

MK Data Services LLC

84

Provides cloud-based bulk customer screening services and solutions

to companies and organizations. Based in Columbia, Maryland.

The Riverside Company

Baker Hill Corporation

100

Develops and delivers banking process software solutions to address

business process needs of financial institutions in the United States.
Based in Carmel, Indiana.

VC-BACKED

TIO Networks Corp.

Softgate Systems, Inc.

30

Provides retail payment services. Its Retail Payments Exchange

platform oers an open electronic exchange connecting ISOs,
integrated partners, service providers, merchants, retailers, and billers
to the cash-preferred consumer base. Based in Fairfield, New Jersey.

TOTVS S.A.

Bematech SA

177

Provides technology solutions for retail, food, and hospitality

industries. Based in Sao Paulo, Brazil.

Tradeshift Inc.

Merchantry, Inc.

30

Provides an eCommerce software-as-a-service solution for retailers to

streamline and scale their marketplaces and supplier relationships.
Based in New York, New York.

Travelport Worldwide
Limited

Mobile Travel Technologies

60

Develops mobile applications for the travel industry. Based in Dublin,

Ireland.

Tyler Technologies, Inc.

New World Systems

Corporation

679

Designs, develops, markets, supports, and implements software

solutions for public safety and public administration organizations.
Based in Troy, Michigan.

UPC Ireland B.V.

TV3 Television Network

Limited

97

Operates a free-to-air television channel in Ireland. Based in Dublin,

Ireland.

Valid Soluciones
Tecnologicas

Fundamenture A/S

138

Engages in businesses related to smartcard technologies. Based in

Herlev, Denmark.

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

11

CORE TRANSACTIONS

(CONTINUED)

Q3 - 2015
BUYER

Veeva Systems Inc.

Premium Value M&A

TARGET

Zinc Ahead Holdings Ltd

TRANSACTION
VALUE ($MM)

TARGET DESCRIPTION

127

Provides marketing compliance solutions for the life sciences industry

in the United Kingdom and internationally. Based in Oxford, United
Kingdom.

Vonage Holdings
Corporation

iCore Networks, Inc.

92

Provides hosted unified communications and cloud application

solutions to businesses in the United States. Based in McLean,
Virginia.

Walmart Labs

Punchtab, Inc.

30

Provides an on-demand instant loyalty engagement platform for

publishers, retailers, and application vendors. Based in Palo Alto,
California.

Webedia SAS

Tudo Gostoso Internet Ltda

56

Operates a food recipes website and tv channel in Brazil. Based in

Curitiba, Brazil.

Wuhan P&S Information

Technology Co.

Feat China

57

Develops online energy technology solutions for electric energy meter

makers related to power grid investment. Based in Shanghai, China.

100

Operates as a clickbait-heavy content shop. It publishes viral content

in the areas of science, life, culture, video, entertainment, and others.
Based in Overland Park, Kansas.

Zealot Networks

ViralNova, LLC

Mobile | Internet | Digital Media M&A transactions with announced or estimated consideration between $25 million and $1 billion.

AP M&A
ALERT

VC-BACKED

11

OTHER NOTABLE DEALS

Q3 - 2015

Premium Value M&A

BUYER

TARGET

TRANSACTION
VALUE ($MM)

Altice N.V.

Cablevision Systems
Corporation

19,433

Amazon Web Services

Appthwack

Develops android application testing platform that enables users to

test the applications on various real devices before going to the
market. Based in Portland, Oregon.

Braintree

MODEST Inc.

Oers a mobile commerce iOS application that helps users to shop on

mobile. Based in Chicago, Illinois.

CA, Inc.

Xceedium

Provides privileged identity management solutions for hybrid cloud

enterprises. Based Herndon, Virginia.

The Carlyle Group

Veritas Technologies
Corporation

8,000

Oers data backup and recovery, archiving, eDiscovery, storage

management, and information availability services. Based in Mountain
View, California.

Provides maps and other location content for navigation, locationbased services, and mobile advertising applications around the globe.
Based in Chicago, Illinois.

Daimler AG, BMW, Audi

HERE Holding Corporation

3,069

Google, Inc.

Jibe Mobile

IBM

Appcore

IBM

Strongloop

TARGET DESCRIPTION

AP M&A
ALERT

VC-BACKED

Owns and operates cable systems in the United States. Based in

Bethpage, New York.

Operates a cloud-based technology platform for phone companies,

developers, and consumers. Based in Mountain View, California.
Provides cloud management software, consulting, and support
solutions. Based in Des Moines, Iowa.
Provides Node.js-powered tools to build, deploy, and scale APIs to
connect applications and devices to data.

x
x
x

Media General, Inc.

Meredith Corporation

3,095

Operates as a diversified media company that focuses primarily on

the home and family marketplace in the United States. Based in Des
Moines, Iowa.

Oracle, Inc.

Maxymiser, Inc.

Oers Maxymiser, a cloud-based testing, personalization, and crosschannel optimization solution. Based in New York, New York.

TIBCO

Mashery

Provides cloud-based multitenant SaaS platform that provides API

management technology and services to mid sized markets and
enterprise markets. Based in San Francisco, California.

Vista Equity Partners

Solera Holdings

6,751

Provides risk and asset management software and services to the

automotive and property marketplace. Based in Westlake, Texas.

M&A transactions with consideration in excess of $1B or with unannounced transaction values

12

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