Select Recent HW TMT Transactions

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Select IDM M&A Transactions – 3Q 20191

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Blackstone’s Acquisition of Vungle

  • Vungle provides a performance marketing platform that enables publishers to generate revenue through in-app video advertisements
  • The Company partners with publishers of more than 60,000 mobile apps worldwide, serving more than 4 billion video views per month
  • The investment represents a new platform for Blackstone in a segment of the internet economy that continues to grow quickly and attracts a wider audience

 

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Accenture’s Acquisition of Analytics8

  • Analytics8 provides data management, reporting and visualization, data science, and analytics services
  • The Analytics8 team is based in Australia and comprised of 70 professionals with deep technical expertise and experience advising clients across a range of industries
  • The acquisition of Analytics8 further deepens Accenture’s technical abilities, bolstering its applied intelligence capabilities and helping customers further leverage data and analytics to transform businesses

 

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Etsy’s Acquisition of Reverb

  • Reverb provides an online marketplace designed for new, used, and vintage music gear
  • Reverbs platform leverages transaction data to determine the market value of instruments, enabling consumers to buy and sell them in an easy and affordable manner
  • The acquisition enables Etsy to immediately become a leader in a new vertical with a rooted user base, while also focusing on its core business model, connecting buyers and sellers

 

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Ropers’ Pending Acquisition of ipipeline

  • iPipeline provides cloud-based software solutions for the life insurance and financial services industries
  • iPipeline’s platform is used by approximately 150 carriers, 1,350 distributors and financial institutions, and their agents and licensed advisors in a cloud-based environment
  • Roper’s acquisition of iPipeline fits well within its strategy of finding category leaders in a niche markets and the acquisition will provide a long-term foundation to further develop iPipeline’s proprietary technology platform

 

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Syndigo’s Acquisition of Sellpoints

  • Sellpoints provides an eCommerce optimization platform that allows brands to tell product stories that inform, inspire, and engage their customers using interactive "hotspots" that contain key product content
  • The combined product offerings will integrate rich media and other enhanced content on the product detail page, delivering solutions that will enable brands and retailers to provide their customers with added transparency and information
  • With the acquisition of Sellpoints, Syndigo enhances its content analytics capabilities and positions the combined entity to receive greater wallet share by going to market with the combined offering

IDM Acquisition Activity

Most Active Strategic Acquirers of IDM Assets by Volume2

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  • Strategics are continuing to pay a premium for assets that align with their corporate strategies; notably Salesforce’s acquisition of Tableau.
  • The most active strategic acquirers of IDM assets made a combined five acquisitions in 3Q 2019, the annualized 2019 total of 34 is just ahead of the 30 acquisitions made in 2018.

Most Active Private Equity Buyers of New IDM Platforms by Volume2

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  • The 10 most active private equity investors in IDM assets remained notably active with 10 acquisitions completed in 3Q 2019 slightly down from 12 acquisitions in 2Q 2019.
  • Providence Equity Partners remains one of the more prolific acquirers of new IDM platforms, logging two additional IDM acquisitions in 2Q 2019 (I’Car Systems-DATAFIRST and Chatmeter).

Note: Includes control investments only.

Online Marketing – M&A Market Summary

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  • Online Marketing M&A increased in volume from the previous quarter.
  • Median multiples increased 25% quarter-over-quarter rising above the historical mean.

Notable Online Marketing M&A Transactions2,3

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  • Microsoft’s acquisition of PromoteIQ adds greater marketing technology capabilities to Microsoft’s offering and enables it to better serve customers as they expand their eCommerce business.
  • Providence’s acquisition of Chatmeter highlights private equity investors’ desire to invest in businesses that have strong growth prospects and unique offering that could be lucrative when exiting the business.

Data Analytics – M&A Market Summary

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  • Data and Analytics M&A registered 73 transactions in 3Q 2019, an  increase from the prior quarter.
  • Median reported Data and Analytics transaction multiples decreased slightly to 2.7x in 3Q 2019.

Notable Data and Analytics M&A Transactions1

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  • Data and Analytics remained a key focus area for enterprises in 3Q 2019 as companies increasingly seek data-driven insights and visibility to support critical decision-making.
  • Notable 3Q 2019 Data and Analytics transactions include Cisco’s pending acquisition of CloudCherry, Salesforce’s acquisition of Tableau, and Publicis’ acquisition of Epsilon Data Management.

eCommerce – M&A Market Summary

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  • eCommerce M&A volume in 3Q 2019 remained relatively flat at 35 deals.
  • The median of the reported multiples for 3Q 2019 decreased slightly to 3.5x.

Notable eCommerce M&A Transactions2

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  • DoorDash’s acquisition of Caviar highlights the wave of consolidation that is occurring between competitors in eCommerce. To become more efficient and profitable businesses are scaling their operations through acquisitions.
  • Through its purchase of Messagera, Groupon hopes to improve user engagement, which, in turn, would improve usage metrics and revenue generated by each user.

Select Recent IDM Private Placements1,2

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Public IDM Valuation Multiples by Sector2

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Select HW TMT Transactions

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Appendix: IDM Sector Public Company Universe2

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Appendix: IDM Sector Public Company Metrics2

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Note: Not Meaningful (NM) represents multiples above 50.0x; Not Available (NA) means the data is unavailable.

1. Pitchbook.

2. CapIQ

3. HW Proprietary transaction information

4. PNC Capital Markets

5. S&P LCD Stats

 

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