PressLaunchDate:

NewYork,NYSeptember30,2016

Contact:AdamGross,ChiefMarketingOfficer
+12127540710|adamg@jegi.com|www.jegi.com

JEGI Q3 2016 M&A OVERVIEW

M&A Market Value Surges, Driven by Mega Deals

Mergersandacquisitionsdeal
valueskyrocketed75%tonearly
$200billioninthefirstthree
quartersof2016,drivenbya
numberoflargetransaction
announcements,despitean
uncertainglobaleconomy,witha
fragileEuropeanUnion
anticipatingBrexit,adepreciating
China,andatenseelectioncyclein
theU.S.Thenumberofmergers
andacquisitionsremained
relativelysteadythrough
September2016,acrossthe
media,information,marketing,
softwareandtechenabled
servicessectors.Overall,theyear
hasseen1,660transactions
announced,comparedto1,758
dealsinthesameperiodof2015,anddealvaluesurgedto$187.1billion,upmorethan75%over2015s
$106.2billion,accordingtoJEGI,theleadingindependentinvestmentbankservingthesecoremarkets.

Megadealsdrivingtherisein2016dealvaluewereledbyMicrosoftspendingacquisitionofLinkedInfor
morethan$29billion.Thirtyeightannouncedtransactionshavecleared$1+billionofvaluethusfarin2016,
comparedto21overthesameperiodin2015.InadditiontoMicrosoft/LinkedIn,fiveadditionalM&Adeals
reachedthe$5billionthresholdin2016comparedtoonlytwoin2015including:
QuintilesTransnationalHoldings$13.5billionacquisitionofIMSHealth,providerofinformationand
technologyservicestothehealthcareindustry,announcedinMay
ThemergerofglobalinformationcompanyIHSandfinancialinformationservicesproviderMarkit,
withanestimateddealvalueof$11billion,announcedinMarch
Oracle$9.1billionacquisitionofNetSuite,providerofenterpriseresourceplanning(ERP)and
omnichannelcommercesoftware,announcedinJuly
CSC$8.5billionacquisitionofHPsEnterpriseITServicesdivision,announcedinMay
LeidosHoldingsacquisitionoftheLockheedMartinInformationSystems&GlobalSolutionsbusiness
assetsforapproximately$5billion,announcedinJanuary
ButperhapsthebiggestsurprisewasthelongexpectedsaleofYahootoVerizonfor$4.8billion,afractionof
itsvalueovermuchofitshistory.


Software&TechEnabledServices
TheSoftware&TechEnabledServicessectorledinbothdealvolumeandvalue,with1,009transactions
valuedat$85.8billionthroughthethirdquarterofthisyear,aschartedbelow,withabreakdownofdeal
volumeacrossthisvibrantsector.

Themostactivesubsectorwasapplicationsoftware,whichaccountedfornearlyonethirdofdealvolume.
NotableapplicationsoftwaretransactionsinQ32016includedthe:OracleacquisitionofNetSuite(noted
above);KohlbergKravis&Roberts(KKR)acquisitionofEpicorSoftware,providerofenterpriseapplication
software,includingERP,retailsolutionsandretaildistribution,fromApaxPartnersfor$3.3billion;and
GenesysTelecommunicationsLaboratoriesacquisitionofInteractiveIntelligence,providerofcommunication
andcollaborationsoftwareforcontactcenters,for$1.5billion.

Thechartbelowshowsafurtherbreakdownofthesegmentswithintheapplicationsoftwaresubsector.
Verticalapplicationssawthemostdealvolume(35%),followedbyenterpriseresourceplanning(16%),
customerrelationshipmanagement(15%),andbusinessintelligence(14%).

Behindapplicationsoftware,ITservicesanddistribution(19%)wasthesecondmostactivesubsectorin
Software&TechEnabledServicesandsawtheTechDataCorp.$2.6billionacquisitionofAvnetstechnology
solutionsbusinessunit.Thenextmostactivesubsectorsweremobility(11%)andIToutsourcing(10%).

MarketingServices&Technology
Intermsofdealvolume,MarketingServices&TechnologywasthesecondmostactivesectorthroughQ3
2016,with471transactionsvaluedat$32.7billion.Thedynamicmarketingtechnologysubsectoraccounted
fornearly60%ofthetotalvalue,with$19.3billionacross81deals.Notablemarketingtechnology
announcementsinthethirdquarterof2016includedOracles$9.1billionacquisitionofomnichannel
commercesoftwareproviderNetSuite,andthe$1.5billionacquisitionofcustomerrelationshipand
performancemarketingpowerhouseMerklebyDentsuAegisNetwork.


Healthcaremarketingwasthesecondmost
activemarketingservicessubsectorthrough
September2016,primarilyduetotheEQT
PartnersacquisitionofPressGaney,provider
ofpatientexperienceandcaregiver
measurement,performanceanalyticsand
advisorysolutions,formorethan$2billion.

Digitalandtraditionaladagenciesalsosaw
strongdealactivity;combined,they
accountedfornearlyonethirdoftotaldeal
volumeandmorethan9%ofdealvalue
throughQ32016.Notabletransactions
includedtheWeb.comacquisitionofYodle,
providerofonlinemarketingservicestolocal
businesses,forapproximately$420millionin
Q1,andIBMsacquisitionofthreeleading
digitalagencies,includingResource/Ammirati
inQ1(aJEGItransaction).

Theadtechsubsectorincludedthe
acquisitionofAccordant,anindependent
programmaticmediabuyerwithastrong
technologyplatform,byactiveacquirer
DentsuAegisNetwork.Thedealwasnotable
inthatDentsuAegiswillcombineAccordant
withitsownprogrammatictradingdesk(JEGI
advisedAccordant).

JEGIActivityinQ32016
JEGIhasbeenveryactiveonthedealfront,with12dealclosingsyeartodateandseveralothernearterm
closingsinthepipeline.InQ3,inadditiontoAccordant,JEGIrepresentedCARCOGroup,aleadingproviderof
techenabledandcompliancedrivenhumancapitalmanagementandriskmanagementsolutions,ina
significantinvestmentfromNewYorkbasedprivateequityfirmCIPCapital,andLightReading,aleading,
innovativecontentdrivenmediabusinessfocusingonthetelecomindustry,initssaletoInforma,aglobal
businessintelligence,academicpublishing,knowledgeandeventsbusiness.

LookingAhead
Whiletheglobaloutlookisunsteady,theU.S.economyhasseveralpositiveindicators,includingalow
unemploymentrate,robustdebtmarketsandlowinterestrates,andhighlevelsofavailablecashamong
strategiccompaniesandprivateequityfirms.However,theeconomicgrowthrateintheU.S.issluggish,
offeringslowerorganicgrowthprospectsforcorporations.This,coupledwithrapidadvancementsin
technology,isdrivingtheneedforcompaniestoacquireinordertoachievegrowthandinnovation.


AccordingtoareportbytheBostonConsultingGroupandPaderbornUniversityinGermany,M&Aactivity
driveshigherannualizedreturnrates,ascompaniesthatcompletedfiveormoreM&Adealsfrom2011to
2015hadannualizedreturnsof10.5%vs.5.3%forcompaniesthatcompletedjustonedeal.

AnotherindicatorforahealthyM&Amarket,JEGIhasaverystrongpipelineofactiveengagementsheading
into2017.WhilewearestillwaryoftheglobaleconomyandtheoutcomeoftheU.S.election,thereare
enoughpositivetrendsforM&Atoremainvibrantthrough2017andbeyond.

M&AHighlightsthroughQ32016
M&Aactivityfortheb2bmediaandtechnologysectorsawexponentialgrowthindealvalueinthefirstthree
quartersof2016,duetoMicrosofts$29.5billionacquisitionofLinkedInannouncedinQ2.Dealvolumewas
flatwith77dealsin2016,comparedto75in2015.NotabletransactionsinQ32016included:Informas
announcedacquisitionofB2BintegratedmediacompanyPenton,for$1.6billion;theRitchieBros.
acquisitionofonlineauctionservicesproviderIronPlanetfor$759million;theJohnWiley&Sonsacquisition
ofAtyponSystems,providerofdigitalcontentdelivery,discoveryandmonetizationsolutionsforpublishers,
for$120million;andInformasacquisitionofLightReading,aninnovativecontentdrivenmediabusiness
focusingonthetelecomindustry(aJEGItransaction).

DealvolumeintheconsumermediaandtechnologysectorwasalsoflatthroughQ32016,with161
transactionsvs.159overthesametimeperiodin2015.Dealvaluedeclined13%to$14.9billion,compared
to2015s$17.1billion.Notabletransactionsinthethirdquarterof2016included:Verizonsannounced
acquisitionofconsumermediagiantYahoofor$4.8billion;theWalMart$3.3billionacquisitionof
ecommercewebsiteJet.com;Unilever$1billionacquisitionofsubscriptionecommerceunicornDollarShave
Club;andRandstadacquisitionofjoblistingwebsiteMonsterWorldwidefor$486million.

Thedatabaseandinformationservicessectorsawasmalldecreaseinnumberoftransactionsannouncedin
thefirstthreequartersof2016vs.thesameperiodin2015,with38dealscomparedto41lastyear.


However,transactionvalueroseradicallyin2016to$39.2billion,duetoseveralmegadeals,including
QuintilesTransnationalHoldings$13.5billionacquisitionofIMSHealthinQ2,andtheQ1mergerofIHSand
Markitforapproximately$11billion.NotableQ32016dealsincluded:BaringPrivateEquityAsiaandOnex
jointacquisitionoftheThomsonReutersIntellectualProperty&Sciencebusiness,whichprovides
informationforgovernments,universitiesandcorporations,for$3.6billion;theThomaBravoacquisitionof
automarketplaceTraderfromApaxPartnersfor$1.2billion;andCIPCapitalssignificantgrowthinvestment
inCARCOGroup,provideroftechenabledandcompliancedrivenhumancapitalmanagementandrisk
managementsolutions(aJEGIdeal).

M&Aactivityintheexhibitionsandconferencessectorsawa17%declineindealvolumeanda25%decline
indealvaluethroughQ32016,with49transactionstotaling$2.5billionin2016vs.59dealsand$3.3billion
invaluein2015.NotabledealsinQ32016includedthe:Viad/GlobalExperienceSpecialists(GES)acquisition
ofOnEventServices,providerofaudiovisualproductionservicesforliveevents,for$93million;Questex
MediaGroupacquisitionofExLEvents,providerofengagingcontentdrivenconferencesandpartnered
events;HannoverFairsacquisitionofTruckWorldShow,atradeshowforthetransportationindustry,from
NewcomBusinessMedia;andBrunicoCommunicationsacquisitionofAchillesMedia,providerofawide
portfolioofeventsandservices.

Themarketingservicesandtechnologysectorcontinuestobeveryactive,with471transactionsworth$32.7
billioninvalueforthefirstthreequartersof2016,upfrom2015s463dealsand$19.6billioninvalue.
SeveralnotabletransactionsarementionedaboveintheMarketingServices&Technologysegment.Other
notabledealsinthethirdquarterof2016includedthe:OrientHontaiCapitalacquisitionofAppLovin,a
mobilemarketingautomationcompany,forareported$1.4billion;Salesforce.comacquisitionofQuip,a
cloudbasedwordprocessingappthatenablesuserstocreatedocuments,formorethan$500million;
NuanceCommunicationsacquisitionofTouchCommerce,providerofpayforperformanceonlineconversion
marketingsolutions,forapproximately$215million;andDentsuAegisNetworkacquisitionsofcreative
agencyGyroandprogrammaticadvertisingfirmAccordant(JEGIrepresentedAccordantinitssale).

M&Aactivityforthemobilemediaandtechnologysectordeclinedinbothdealvolumeandvaluethrough
Q32016,downto88transactionsand$2.2billioninvalue,comparedto121dealsand$6.2billionthrough
Q32015.Whiletherewereseveralnoteworthytransactionsin2016,therewasnodealofsizetooffsetthe
$3billionAudi,BMWandDaimleracquisitionofNokiasHERE,mobilemapsandlocationservices,in2015.
NotableQ3transactionsincludedthe:AppleacquisitionofTuri,amachinelearningplatformforapplication
developers,forapproximately$200million;SnapchatacquisitionofVurb,amobilesearchapplication,fora
reported$110million;andFordacquisitionofChariotTransit,amobileapptoreserveshuttlesforpersonal
tripsandcorporateevents,forareported$65million.

Thesoftwareandtechenabledservicessectordroppedslightlyindealvolumewith1,009transactionsinthe
firstthreequartersof2016vs.1,091inthesameperiodof2015.Dealvalue,however,increasedbynearly
50%to$85.8billion,ledbyseveralmegatransactions,includingthoselistedintheSoftware&TechEnabled
Servicessegmentabove,aswellasseveralothersintheITservices,hostedservicesandsecuritysubsectors.
Additionalnotabletransactionsinthethirdquarterincludedthe:CitrixacquisitionofLogMeIn,providerof
remoteaccessSaaSsolutions,fornearly$2billion;OpenTextacquisitionofEMCsenterprisecontent
managementsoftwaredivisionfromDellfor$1.6billion;andOMERSPrivateEquityandHarvestPartners
jointacquisitionofEpiqSystems,providerofediscoverysoftware,forapproximately$1billion.

ABOUTJEGI
JEGIhasbeentheleadingindependentinvestmentbankfortheglobalmedia,information,marketing,
softwareandtechenabledservicessectorsformorethan28years.HeadquarteredinNewYork,withoffices
inBostonandLondon(viaitspartnershipwithClarity),JEGIhascompletedmorethan600highprofileM&A
transactions,servingglobalcorporations;middlemarketandemergingcompanies;entrepreneurialowners
andfounders;andprivateequityandventurecapitalfirms.Formoreinformation,visitwww.jegi.com.