A recent market brief from investment banking firm Berkery Noyes takes a broader view and points out that private investment activity is on the rise across education sectors. The Berkery Noyes tally reports a 9% increase in deals in the first half of 2015, as compared to the last six months of 2014. Deal values, however, rose even more for a 29% increase and a total of US$6.11 in education sector investments YTD June 2015.
The number of mergers and acquisitions in the industry has reached its highest peak in two and a half years, according to a recent report by the investment-banking firm of Berkery Noyes. In the past six months, the number of such mergers grew by 9 percent.
Strong investor interest in mergers and acquisitions for education companies is likely to continue for the second half of 2015, after a record-setting first half of the year in which the value of transactions reached $6.11 billion—29 percent higher than the same time last year, according to Peter Yoon, a managing director for education at Berkery Noyes, an investment bank.
“If you look at the activity in terms of the volume of transactions, we’re at the highest level in the last two and a half years,” says Peter Yoon, who focuses on the education and training sector as Managing Director at Berkery Noyes. Other notable deals involved traditional publishers like Pearson, Houghton Mifflin Harcourt and Scholastic.
Managing Director Vineet Asthana, in a byline article for IT Briefcase, discusses some of the key factors impacting Online and Mobile M&A. According to Asthana, the ongoing shift of consumers’ time and marketing spend to digital channels has been significant in the past few years and it is expected to continue unabated at a 20%+ annual pace.
M&A activity rose for the fourth consecutive half-year, according to the report. This reflects a supply of attractive, strategic acquisition targets as well as a “diverse universe of acquirers,” according to Mary Jo Zandy, managing director at Berkery Noyes.
Peter Ognibene, MD, Berkery Noyes, says: "An increased appetite for technology spending at financial institutions is presenting vendors with good pipelines and an increased array of legacy tech sellers. In addition, regulatory pressures are requiring more transparency pertaining to risk assessment and valuation methods."
Not only is venture capital for edtech startups growing--so, too, are mergers and acquisitions for more mature companies. The number of education M&A deals in 2014 increased 9 percent from 2013 (from 298 to 325); the value of those deals, however, jumped 25 percent from $9.12 billion to $11.4 billion. The numbers come from investment banking advisory firm, Berkery Noyes.
As young financial technology companies continue to attract increasing amounts of venture capital funding, investment bankers are expecting more mergers and acquisitions activity in the sector. Data from New York-based investment bank Berkery Noyes shows that there were 343 deals in the financial technology and information industry in 2014, 8% higher than 2013, with transaction value up by just 5% to $28.7 billion.
Jonathan Krieger, managing director at Berkery Noyes, said Accolade would likely command an attractive multiple in a sale process, anywhere from 3x to 5x revenue or 8x to 15x EBITDA. “There are very few players with the same scale and growth trajectory that are serving self-insured employers and payors,” he noted.
According to Education Investor, M&A activity in the US education industry is hotter than ever. Kirsten Noben looks at what’s driving the trend and the subsectors getting most love. While a bounce back in state spending has played a part, technology has been the main driver, with nearly $2 billion (£1.3 billion) invested in the ed tech space alone last year.
Media and marketing deal making for the first half of 2015 were relatively constant versus the previous six-month period-- with volume and median costs dropping. Deal volume grew 3% to 863 from 841 versus for the last six months of 2014, according to media investment banker Berkery Noyes.
“Many media and marketing companies are looking for acquisitions to enhance their growth,” said Mary Jo Zandy, managing director, Berkery Noyes. “They are also making investments in those areas where their clients are spending the most money and where they can sell their services at a premium. M&A activity is robust due to the high stock market valuations and the low cost of financing transactions.”
For an indication of just how steep valuations are getting- one needn’t look any farther than the software sector. Sponsor-backed transactions made up more than 40% of the dollar value of deals so far this year, despite accounting for just 18% of transaction volume, according to a report from investment bank Berkery Noyes.
This week, Berkery Noyes investment bank released its 2015 M&A trends report for the software industry. With all of the recent lower-than-expected quarterly revenue reports in the technology sector, it might be easy to assume that portions of the IT industry are seeing a cooling off period. But don't tell that to Microsoft Corp., which leads all firms in technology company acquisitions for the first half of 2015.
Wilmington plc, a U.K.-based publisher and business information provider, took a step toward improving its market position in the U.S. on Tuesday with the acquisition of Financial Research Associates, the company announced. Berkery Noyes represented FRA in the transaction.
Financial Research Associates LLC (FRA), organizers of highly specialized conferences in the finance and healthcare sectors, has been acquired by Britain’s Wilmington plc. Berkery Noyes represented FRA in the negotiations.
Merger and acquisition (M&A) activity in the healthcare IT segment improved 33 percent on a year-to-year basis, according to new research from New York City-based investment bank Berkery Noyes. The health IT segment accounted for almost half of the industry’s aggregate deal volume, and strategic acquirers comprised 70 percent of the segment’s volume, according to the research.
Private equity firms and strategic acquirers interested in making deals in K-12 education this year will be looking to invest in businesses that provide adaptive learning and assessment, according to a report from Berkery Noyes, a New York-based investment bank. "Most companies in the education sector have been doing very well of late," said Mary Jo Zandy, a Berkery Noyes managing director, in an interview.
Jonathan Krieger, managing director at investment bank Berkery Noyes, said multiples among wellness companies can range from 7x to 15x EBITDA and between 1x to 3x revenue. Krieger said Wellness Coaches is a very attractive target in a fragmented market that is seeing increased consolidation, driven largely by rising insurance premiums, demographic trends, new reimbursement models and health reform. He believed both PE firms and strategic players would show interest in the company.
Southwest Financial Services Ltd. has been part of downtown Cincinnati for more than 25 years, and now it has a new owner. Berkery Noyes served as an adviser for the acquisition, which continues Solidifi’s rapid growth. The firm has expanded more than 50 percent annually since 2008.
Solidifi, a provider of residential real estate appraisals, acquired Cincinnati-based Southwest Financial Services, provider of outsourced services to home equity lenders. Along with the acquisition, Solidifi’s parent, Real Matters, raised $60 million in financing to strengthen the company’s balance sheet and to pursue further strategic opportunities.
Solidifi, an independent real estate appraisal management company (AMC), has acquired Southwest Financial Services Ltd., a national, independent provider of outsourced services to home equity lenders. Berkery Noyes was an advisor for the transaction.
According to Berkery Noyes’ latest research, transaction volume decreased 11 percent in Q1 2015. This followed a 16 percent rise in Q4 2014. Total value declined 35 percent over the past three months, from $24.1 billion to $15.6 billion. Of note, eight of the industry’s top ten largest deals in Q1 2015 were based outside of the U.S.
Online and mobile deal volume increased 4% in the first quarter of 2105 compared with Q4 2014, to 696 transactions from 670 transactions, reports investment bank Berkery, Noyes and Co. LLC. Reported deal value increased to $26.1 billion from $22.6 billion during this period.
LRP Conferences LLC has acquired Future of Education Technology Conference, FETC Virtual Conference, Campus Technology Conference and the Campus Technology Forum. The seller is 1105 Media Inc., which is backed by Alta Communications and Nautic Partners. LRP Conferences is an affiliate of LRP Publications. Berkery Noyes & Co LLC advised 1105 Media.
LRP Conferences, producers of national conferences and professional research services, has acquired several education technology events from 1105 Media. Investment bank Berkery Noyes & Co, LLC represented 1105 Media, Inc. in the transaction.
1105 Media will continue to operate its publishing and digital products in the education marketplace, including Campus Technology and THE Journal, which serve the higher education and K-12 sectors, respectively. Investment bank Berkery Noyes & Co, LLC represented 1105 Media, Inc. in the transaction.
Trade shows have become a particularly sought after asset in media M&A lately. B2B publisher 1105 Media has just sold its education technology events to LRP Publications, a Palm Beach Gardens, Florida-based media company targeting education administrators. Media M&A broker Berkery Noyes represented 1105 in the deal.
LRP Conferences, LLC, an affiliate of LRP Publications and producers of national conferences and professional research services, announced April 2 the acquisition of four education technology events from 1105 Media Inc., a California-based multimedia B2B company. Investment bank Berkery Noyes & Co, LLC represented 1105 Media Inc. in the transaction.
Berkery Noyes served as a sponsor and presented an award at the Benzinga Fintech Awards, an event dedicated to recognizing outstanding innovation in financial technology that is specific to the capital markets. Over 100 of the most innovative financial technology companies competed against each other.
Emerald Expositions, LLC (“Emerald”) announced that it has acquired several leading brands in the healthcare and senior living design market from Vendome Group, LLC. The financial terms of the transaction were not disclosed. Investment Bank, Berkery Noyes & Co, LLC, represented Vendome in the transaction.
Emerald Expositions LLC announced two show acquisitions in March that beefed up the company’s design group portfolio. The transaction includes three Vendome brands that are focused on the design and construction of healthcare and senior living facilities. Berkery Noyes represented Vendome Group in the negotiations.
Emerald Expositions LLC, a portfolio company of Onex Corp, has bought several brands in the healthcare and senior living design market. The seller was Vendome Group LLC. Among the purchased brands is Healthcare Design Conference and Expo, a tradeshow focused on design for healthcare facilities. Investment Bank, Berkery Noyes & Co, LLC, represented Vendome in the transaction.
Emerald Expositions bought several brands in the healthcare and senior living design market, including the Healthcare Design Conference and Expo and other events, education, print and online assets from the Vendome Group. Investment Bank, Berkery Noyes & Co, LLC, represented Vendome in the transaction.
"Yes, [these valuations] are high," said Mary Jo Zandy, managing director at Berkery Noyes, New York. "Still they are companies that have unlimited, global potential. And Snapchat and Pinterest are successful platforms, something very hard to achieve."
Total media and marketing transaction volume grew by double-digit percentage in 2014 -- but the total number of transactions and the average revenue and cash flow selling multiples remained generally the same as the year before. Investment banker Berkery Noyes says transaction volume rose 22% to $91 billion in 2014 over the year before; with the number of transactions at 1,696 in 2014 versus 1,697 in 2013.
Takeovers of financial-technology providers rose five percent in 2014 to $28.7 billion, according to research from investment bank Berkery Noyes & Co. Payments companies are consolidating as consumers show an increased preference for credit cards, while providers of financial software are striking deals to keep their technology fresh.
Not only is venture capital for edtech startups growing--so, too, are mergers and acquisitions for more mature companies. The number of education M&A deals in 2014 increased 9 percent from 2013 (from 298 to 325); the value of those deals, however, jumped 25 percent from $9.12 billion to $11.4 billion. "The focus on education access, data analytics, and outcomes-driven technology products and services continues to shape the industry," says Peter Yoon, Managing Director at Berkery Noyes, in the press release.
The business climate for dealmaking in the K-12 marketplace should be a favorable one in 2015, according to Mary Jo Zandy, a managing director at Berkery Noyes, a New York-based investment bank. "I think it will be a good year for M&A activity in education in general," said Zandy, whose firm recently released its 2014 Education Report, tracking sales and purchases of education companies that serve students and professionals from 2012 to 2014.
Marketing M&A deal value tripled in 2014, according to the 2014 M&A trend report by independent investment bank Berkery Noyes. Four of the industry's top 10 highest-value deals were in the marketing segment last year, and each transaction was worth more than $2 billion. Only one deal generated this much value in 2013.
2014 was a big year for payments M&A, the latest Financial Technology M&A report by Berkery Noyes reveals. Not only were four out of the five largest financial technology M&A deals in the payments segment, but transaction volume also experienced a 44% rise over the past year.
Mergers and acquisitions among payments companies rose 44% in 2014 compared to the year before. Overall, there were 137 transactions in the payments industry, compared to 95 in 2013, making it the financial sector with the largest rise in volume. "Big corporations tend to wait for one or two smaller companies to compete with similar payments technologies, then focus on the one that survives as a company to approach for a potential acquisition," John Guzzo, managing director at Berkery Noyes, stated in a press release.
"2014 was quite a year for the M&A market in terms of both volume and value," Mary Jo Zandy, managing director with Berkery Noyes, told eWEEK. "With generally strong balance sheets and healthy income statements, the major strategic buyers are, by and large, continuing to look for acquisitions that offer additional growth opportunities."
Software industry mergers and acquisitions rose dramatically this past year, with Facebook’s moves accounting for 20% of the growth. In its Software Industry M&A Report for 2014, investment bank Berkery Noyes revealed a 14% increase in the number of deals to a total of 1,840 transactions, with deal value rising 36% from US$88.32 billion to $120.18 billion.
Every quarter, investment bank Berkery Noyes compiles an analysis fintech M&A trends. Berkery's managing director John Guzzo shares his insights on trends to look out for in the fintech market next year.
Robb Report, a magazine and lifestyle brand dedicated to the ultra wealthy, has been sold to Rockbridge Growth Equity, a Detroit-based private equity firm. Berkery Noyes served as financial advisor to Robb Report on the deal.
Rockbridge Growth Equity said Wednesday it has acquired the Robb Report. Malibu, Calif.-based Robb Report is a magazine that caters to ultra affluent consumers. Dan Gilbert, who owns the Cleveland Cavaliers, is the Rockbridge Growth’s managing partner. Berkery Noyes advised the Robb Report.
Rockbridge Growth Equity acquired Robb Report, a luxury lifestyle-focused media company whose publications include Health & Wellness, Home & Style and Watch Collector, according to a news release. Robb Report was advised by Berkery Noyes.
But Mary Jo Zandy, managing director of investment bank Berkery Noyes, says she’s somewhat skeptical about the staying power of these programs and “what kind of traction they’ve gotten.” She says none of the courses are of critical mass yet. Nevertheless, she says more educational technology companies will look to take advantage of investor interest by tapping the public market, following the example of 2U, which had a successful public offering in March.
Mary Jo Zandy, managing director of investment bank Berkery Noyes, said MHE is waiting to go public sometime in 2015. “It’s not a secret that that’s their goal,” Zandy said. “The ingredients are there. The stock market looks good for education companies,” she said. The company is doing well and repositioning itself to emphasize growth and educational technology. K-12 is rebounding and the company is also strong in higher education, she noted.
Truven Health Analytics, a portfolio company of Veritas Capital, has agreed to buy Heartbeat Experts. No financial terms were disclosed. Berkery, Noyes & Co was the financial advisor to Heartbeat Experts on the transaction. Heartbeat Experts is a provider of stakeholder management solutions for the life sciences sector.
According to Peter Yoon, a managing director at the Berkery Noyes investment bank who specializes in the education and training sector, ed-tech investment has increased steeply since 2006. More than $1-billion was invested in ed-tech companies in 2013, he said, and in the first quarter of this year more than $500-million was invested. "It's quite a brisk pace in terms of the amount of investment," Mr. Yoon said. "Compared to previous years, it's a tremendous increase."
Truven Health Analytics Inc., a provider of health-care analytics and data services backed by Veritas Capital, said it agreed to acquire Heartbeat Experts, a provider of stakeholder management services for the life sciences industry, for an undisclosed sum. Berkery Noyes & Co. served as the exclusive financial adviser to Heartbeat Experts in the transaction.
M&A transactions will likely show more growth in Q4, says Peter Ognibene, the firm's managing director. "We are in a frothy M&A market right now, particularly in software and tech, so we can expect to see big deals and numbers continue to trend up," he told IBD. Increasing VC fund dollars also drives M&A activity, Ognibene says. "More capital chasing the same number of deals drives up the value, which creates more sellers, which creates more volume, which will bring more interest," he said. "It's a virtuous circle."
"It's been a very strong year--probably better than the prior year," Mary Jo Zandy, Managing Director at Berkery Noyes, tells EdSurge. In K-12, which "was more depressed than higher-ed and professional publishing during the recession, push from various legislation, testing consortia" are "driving changes in states and district budgets and forcing them to try new things."
Britain’s i2i Events Group has acquired Money 20/20, a fledgling financial services conference and exhibition held in Las Vegas in November. Terms of the deal were not announced. Money 20/20 will continue to operate under the leadership of its founders, Anil Aggarwal and Jonathan Weiner. Berkery Noyes represented Money20/20 in the transaction.
John Guzzo, MD at Berkery Noyes, says: “Card providers and merchants are seeking to gain a competitive edge and reduce fraud related costs by acquiring the best technology available. As EMV capable systems reduce in-person fraud, fraudsters will shift online, thus requiring merchants to adopt even more advanced technology.
"Very attractive and large properties have come to market. The universe of acquirers has grown beyond Oracle and SAP," Mary Jo Zandy, managing director from Berkery Noyes, told eWeek. "Private equity players, such as VISTA, have been acquisitive. And capital markets have enabled them to pay premiums, based upon debt availability."
According to an article written in Bank Systems & Technology by John Guzzo, Managing Director at Berkery Noyes, the ongoing implementation of new regulations are driving innovation in mortgage servicing. Prior to the credit crisis, mortgage regulations had focused mainly on the originations sector, but this is rapidly changing as regulators give the servicing sector more attention.
The new business lines allow insurers to diversify and strengthen their revenue base, said Jonathan Krieger, managing director at investment bank Berkery Noyes, which focuses on the technology sector. “There's a lot of activity in the space,” he said. “They need to look for other ways to maintain their margins.”
Every day, it seems, we read of an Internet-based company acquiring another one, or raising capital, or expanding into a new segment. Mergers and acquisitions for Internet companies are booming.
“Data driven decision-making that is built into assessment capabilities will continue to redefine traditional publishers offerings,” Mary Jo Zandy, managing director at mid-market investment bank Berkery Noyes, said of deals like the MHE acquisition of Engrade.
The number of mergers and acquisitions in the education industry climbed during the first half of the year, as did the multi-billion dollar value of those transactions, according to a new report. The biggest deal during that period was the acquisition of SkillSoft, an Irish company that provides cloud-based technology services to governments, businesses, and schools, by Charterhouse Capital Partners, for $2.3 billion, according to Berkery Noyes, the independent investment bank that published the report.
Jon Krieger, managing director of Berkery Noyes, said ABILITY likely would attract numerous buyers in a future sale, including healthcare IT companies such as Emdeon, Cerner, McKesson, and Vista Equity-backed Greenway Medical Technologies, as well as insurers such as UnitedHealth Group.
Mergers and acquisitions across healthcare, pharma and health IT are on the rise, having increased by 18 percent since the second half of 2013, with health IT outpacing all other segments, according to a report from Berkery Noyes. In a statement, Berkery Noyes Managing Director Tom O’Connor said the health IT marketplace is “rapidly changing,” and that “both strategic and financial buyers are on the hunt for attractive acquisitions of scale.”
Mergers and acquisitions for the health IT market continue to see big numbers, with total deal volumes increasing 18 percent since the second half of 2013, according to a new Berkery Noyes trend report. "Private vendors of tech-enabled healthcare solutions continue to be in high demand by both strategic and financial buyers," added Jonathan Krieger, managing director at Berkery Noyes, in a statement.
Claim overpayments are a significant contributor to the rising costs of healthcare, with claim error rates for commercial, Medicare fee-for-service (FFS) and Medicaid FFS claims estimated to be a market opportunity in excess of USD 150bn, said Jonathan Krieger, managing director of healthcare investment banking at Berkery Noyes. PE firms are attracted by the margins and growth characteristics of these companies, as their revenue models are typically a percentage of the overpayments collected, added Krieger, who represented AfterMath Clain Science in its sale to Equian last month.
M&A activity in the financial technology sector was down for the first half of 2014 as compared with the last six months of 2013, according to new research from Berkery Noyes. Deal activity in the payments segment saw only a 5% decline in the first half of 2014, Berkery Noyes reported. This followed a 64% increase between the first half and the second half of 2013.
Payments is likely to stay in the forefront of M&A activity as the industry invests in emerging security technology, says John Guzzo, managing director for Berkery Noyes. As companies continue to pursue electronic bill payment and online payments to eliminate paper bills, the payments industry may see more mergers in that space in the future, Guzzo says.
Investment bank Berkery Noyes’ first-half report for 2014 shows total value for mergers and acquisitions (M&A) in the media and marketing industry up on a half-year basis, from $45.8 billion to $49.8 billion. Total value of M&A in the industry had a sharp 70% increase compared with the first half of 2013, which had a total value of $29.5 billion.
According to an article written in Bank Systems & Technology by John Guzzo, Managing Director at Berkery Noyes, automated solutions can help credit unions take advantage of the market growth in auto and personal loans as refinancing opportunities decline.
Equian, which is backed by Great Point Partners, has closed its buy of AfterMath Claim Science. No financial terms were disclosed. Berkery Noyes advised AfterMath Claim Science on the transaction. Based outside Chicago, AfterMath Claim Science is a provider of overpayment solutions for healthcare payors.
Private equity-backed Equian has acquired AfterMath Claim Science Inc., a health care technology company. AfterMath, headquartered in Warrenville, Illinois, provides post-payment recovery services that aim to eliminate medical claim payment errors through data mining technology called ClaimScope.
Equian, a health-care information services company backed by Great Point Partners, has bought post-payment recovery services company AfterMath Claim Science Inc. In the release, Equian said the purchase expands the Indianapolis, Ind.-based bill review and repricing service providers' "capabilities through advanced data mining and analytics," and builds on its acquisition of The Reclaim Group LLC last year.
Mergers and acquisitions in the mobile industry continued at a flurried pace this year, with the volume of merger deals up to five percent in the first three months of 2014 alone. Total transaction value rose by 63 percent, from $26.5 billion to $43.3 billion, according to the Online and Mobile Industry trend report by Berkery Noyes, an independent mid-market investment bank.
Marketing M&A deal activity increased 22% year over year, marking one of the highest volume quarters on record, according to new data from mid-market investment bank Berkery Noyes.
Mergers and acquisitions (M&A) in the marketing industry rose 22 percent in first-quarter 2014, the largest quarterly rise in volume for the sector, says a new study from investment bank Berkery Noyes.
In 2013, M&A specialists Berkery Noyes (New York) tracked 295 transactions in the broader education space, up from 274 in 2012 and worth an estimated $10.2 billion, up from an estimated $8.04 billion on 2012.
“The breadth of acquirers continues to expand, as buyers look to capitalize on the size, rapidly evolving dynamics and growth characteristics of the healthcare market,” said Thomas O’Connor, Berkery Noyes managing director. “In addition, acquirers are aggressively looking to broaden product suites, leverage distribution channels, realize revenue and gain cost synergies.”
There were 434 overall media/marketing deals in the first three months of 2014 -- this versus 423 the quarter before and 417 against the first quarter of 2013, this according to a study by New York investment banker Berkery Noyes.
According to Berkery Noyes, the niche software market was the largest of four segments defined by the bank’s analysts. The niche software segment, which consists of software that is targeted to specific vertical markets, underwent a ten percent volume increase in Q1 2014.
Overall, there have been 573 mergers and acquisitions in the education industry over the past two years, and the number of transactions rose by 8 percent from 2012 to 2013, according to the independent investment bank Berkery Noyes, which studied dealmaking over that period.
Transaction volume for mergers and acquisitions (M&A) in the software industry declined 4 percent on a quarter-to-quarter basis, though this represented a 14-percent increase compared to the first quarter of 2013, according to midmarket investment bank Berkery Noyes. "Many acquirers are looking for the ability to manage enterprise platforms across public, private and hybrid cloud environments," James Berkery, chief information officer at Berkery Noyes, said in a statement.
Boathouse Capital has partnered with the management team and employees of MIS Training Institute to acquire the US and UK operations of the company from its former parent, Euromoney Institutional Investor PLC. Berkery Noyes advised MIS Training Institute and Euromoney Institutional Investor PLC.
Boathouse Capital funded a buyout of MIS Training Institute, a unit of professional training company Euromoney Institutional Investor PLC with operations in the U.S. and U.K., through a newly formed employee stock ownership plan. Berkery Noyes & Co. advised MIS Training Institute and Euromoney Institutional.
Polaris, which has offices in Waltham, Mass., San Francisco and Dublin, reached a deal to acquire Roberts Group through a process managed by New York boutique investment bank Berkery Noyes & Co.
Specialty lenders have become an increasingly common source of funding for private equity-backed deals in the technology and information services space, partly because of the flexibility that they provide, according to John Guzzo, managing director at Berkery Noyes & Co., an investment bank focused on the information and technology industries. Specifically, Mr. Guzzo said he has seen more specialty lenders offer unitranche debt, which combines the senior debt and mezzanine or subordinated debt for a deal all in one package.
Higher Education Media and Tech deal activity saw an 11 percent improvement between 2012 and 2013, according to the Berkery Noyes Education Industry M&A Report for full year 2013.
According to a report from Berkery Noyes, an investment bank, there were 1,598 mergers and acquisitions in the software industry in 2013, worth an aggregate $88.22 billion. Companies sold, on average, for 2.4x their previous year’s revenue.
In the 2013 FinTech M&A report, Berkery Noyes notes that 2013’s highest value insurance transactions were completed by private equity firms. Despite this fact, John Guzzo, managing director at Berkery Noyes, tells Reuters IFI that private equity was not the primary driver of FinTech transactions last year. Rather, Guzzo said the increase in deal activity was driven by the large players in the FinTech space.
Just as the media world is obsessing on the Comcast and Time Warner Cable deal, investment bankers BerkeryNoyes released its summary reports for the three-year trends of all transactions in the sectors it covers, including everything which is broadly part of the Information Industry, that they divide into Media & Marketing, Software and Online & Mobile segments.
“Mobile is having a major impact on the retail landscape, and many of the bigger companies realize that they need to adapt,” said Mary Jo Zandy, managing director of Berkery Noyes, New York. “This bodes well for future M&A activity as acquirers look to fill voids in their existing product offerings,” she said.
"The big education players are acquiring to help manage the transition from print to digital," Peter Yoon, managing director of Berkery Noyes' education group, said in an interview. He said they're also moving to "strengthen their presence in emerging markets."
A dynamic health IT marketplace is rewarding robust and scalable companies – especially those whose products focus on revenue cycle and clinical decision making, according to a trend report from investment bank Berkery Noyes.
"The MDM sector remains poised for consolidation,” said Mary Jo Zandy, Managing Director, Berkery Noyes, via email. “More so than any potential mega deals, most of the activity will involve the acquisitions of small and mid-sized companies that fill existing voids in the marketplace.
Mid-market investment bank Berkery Noyes has released its 2013 mergers and acquisitions report for financial technology and information companies in capital markets, payments, banking, insurance and other financial services. There were 341 deals across all industries in 2013, a 10% growth from 2012.
Media/marketing deals remained relatively the same in 2013 versus the previous year, but total dollar value soared -- nearly 30%, due in large part to the Publicis-Omnicom merger. Total market value was $97.3 billion -- up from $75.8 billion, according to New York investment banker Berkery Noyes.
In a conference call held to discuss the deal, NCR said that the transaction is valued at a multiple of 15.7 times pro-forma EBITDA of $105 million for the 12 months up to July 31.That's higher than the median valuation for technology deals that took place in the first half of 2013. According to mid-market investment bank Berkery Noyes, the median EBITDA multiple for technology deals was 12.5 times in the first half of this year.
"Payments has very strong proprietary technology vendors, but they lack the sales and distribution forces, so they look to align with larger payments companies," Guzzo says of a common industry scenario. "An ancillary benefit of that is those channel partners are likely buyers," he adds.
BLR said Tuesday that it has acquired HCPro and HealthLeaders Media brands. No financial terms were disclosed. Berkery Noyes served as HCPro’s exclusive financial advisor in the transaction.
The end-of-the year activity comes after third-quarter activity across the education spectrum. Berkery Noyes investment bank said six third-quarter education-related transactions had an aggregate value of $1.5 billion, representing 75% of third-quarter transaction value and 26% of transaction value in the first nine months of 2013.
Peter Yoon, a managing director on education issues at Berkery Noyes, sees two main factors driving the recent activity among companies serving toddlers and young children. The first is that the child-care sector is a cyclical one. It tends to grow as the economy gains strength—as it appears to be doing now—and both parents enter the workforce, and the need for child care increases, Yoon said.
"Health care deal flow continues to be strong for companies developing proprietary technology/content, of scale in their markets, high revenue growth (double digit), high percentage of recurring revenue and large total addressable market opportunity," Tom O'Connor, managing director at Berkery Noyes, said in a statement.
A new report by Berkery Noyes indicates that both product sales and mergers and acquisitions (M&A) within the vendor community are going strong, with $6.29 billion worth of M&A activity in 2012, driven by the HITECH Act and the pressing need to resolve pain points in the healthcare industry.
“Deal value declined a bit on a quarter-to-quarter basis,” commented James Berkery, CIO of Berkery Noyes. “I wouldn’t look at that as a real indicator moving forward, since the volume has increased. The decline is largely due to smaller mid-market deals.”
The healthcare market, especially health IT, remains "highly fragmented," with lots of openings for entrepreneurs who can solve providers' "pain points," according to the latest trend report from Berkery Noyes.
Berkery Noyes was selected as a finalist in the M&A Deal of the Year category. The firm was nominated due to its representation of Great Escape Theatres, which was acquired by Regal Entertainment Group. The winners will be announced on December 17th.
Berkery Noyes was nominated in the North American boutique investment bank of the year category, as part of the M&A Atlas Awards program hosted by the Global M&A Network. All award winners will be officially revealed on October 24th.
Columbia Books & Information Services has purchased Thompson Information Services for an undisclosed amount. The company was sold by the Thompson Media Group, which has been in the process of selling its business units. Thompson Information was the fifth and final unit to be sold.
Columbia Books & Information Services announced Aug. 29 that it has acquired Thompson Information Services, a publisher of subscription-based regulatory and compliance information primarily for human resource departments, from Thompson Media Group. The transaction was handled by Berkery Noyes.
Wilmington Group, a U.K.-based information provider that focuses on professional business markets, has acquired Compliance Week from Haymarket Media Group. Berkery Noyes acted as Haymarket's financial adviser in the deal.
"Education in general is probably a middle-market sector, probably a little lower. If you got a company that is getting in the range of $40 million to $50 million in Ebitda or so, then you are quickly gobbled up by another strategic or you're thinking about going public," said managing director Peter Yoon.
Investment bank Berkery Noyes shares a summary of education industry mergers & acquisitions during the first half of 2013 here. This is big game stuff and includes everything from K-12 deals to those involved with professional training: all told, the firm tracked 135 transactions valued collectively at $3.84 billion.
In the payments industry, point of sale technology has become the "hottest area" of interest for companies considering an acquisition, according to the investment bank Berkery Noyes. "As the trend moves away from cards, cash and gift cards to e-wallets, point-of-sale transactions will change," says John Guzzo, the bank's managing director in the financial technology and services group.
Strategic buyers in the media and marketing industry, driven by a shift toward digital, are on the rise, according to a recent report by investment bank Berkery Noyes & Co. LLC.
The big increase in the in the last six months of 2012 was because of tax changes, with entrepreneurs and companies trying to close deals before New Year’s to take advantage of capital gains treatment, John Guzzo, managing director of Berkery Noyes, said. "The second half of last year was an anomaly," Guzzo noted.
Private equity M&A activity in the information technology industry fell 15% in the first half of the year, according to a study from Berkery Noyes. Transactions totaled 234, compared with 198 in the second half of 2012. Deal volume by strategic acquirers, however, was largely flat.
"The main catalyst of this deal was acquiring a strong core banking platform and using that to sell other products and solutions to banks," says John Guzzo, a managing director at investment bank Berkery Noyes. "It's really about providing a full product suite and acquiring a business that's going to get them into different markets."
Peter Yoon, the managing director of Berkery Noyes, said in a statement that the education industry remains in a "period of transition" which began during the deep recession a few years ago—and drained state and local K-12 budgets—and has continued to feed an "environment where many are questioning the value of the traditional education models."
The mergers and acquisitions market has been very robust in healthcare generally and in health IT in particular, said Jonathan Krieger, managing director for healthcare investment banking for Berkery Noyes, an investment banking advisory firm, in an interview with InformationWeek Healthcare.
"Even though you have within healthcare a massive proliferation of the digitization of data, it typically has been paper based forever," Jonathan Krieger told Med Ad News Daily. "Over the last two years it has been very quickly digitized."
For the first half of 2013, health information technology was the most active market segment of the healthcare/pharma IT industry for mergers and acquisitions, according to a report from New York-based investment bank Berkery Noyes.
According to an article in Healthcare IT News which quotes investment bank Berkery Noyes, "During the first six months of 2013, health information technology was the 'most active market segment' of the healthcare/pharma/IT industry for mergers and acquisitions."
For the first half of 2013, health information technology saw more action in mergers and acquisitions than segments like healthcare business services, consumer health and pharma IT, according to a new report from New York-based investment bank Berkery Noyes.
According to data released by Berkery Noyes Investment Bankers, healthcare IT was the most active market for mergers and acquisitions in the first half of 2013. Healthcare IT accounted for 63 percent of transactions and 40 percent of total mergers and acquisitions volume during that time frame.
"The breadth of acquirers for HIT companies continues to expand as buyers look to capitalize on the size, rapidly evolving dynamics and growth characteristics of the healthcare market," said Jonathan Krieger, managing director at Berkery Noyes, in a statement.
Managing Director John Guzzo recently participated in RGA's podcast series, which gathers insight from leading experts in the Information Industry. In the podcast, John discusses why recurring revenue, scalability, limited customer concentration, EBITDA margin, and growth are some of the key factors that business owners should consider before selling their company.
M&A value in the media and marketing industries was $29.4 billion in the first half of the year, up 2% from the year-earlier period but down a steep 37% from $47.4 billion in the second half of last year, according to a report from investment bank Berkery, Noyes & Co.
On a whole, the quantity of private equity deals is about the same since last year, but has almost doubled in value to $12.9 billion in the first half of 2013 compared with those same six months in 2012, says James Berkery, CIO at Berkery Noyes.
Private equity firm StoneCalibre has purchased Source Technologies, which provides magnetic ink printers. John Guzzo of Berkery Noyes was Source Technologies’ financial adviser.
StoneCalibre, a private investment firm formed by a former Platinum Equity partner, acquired Source Technologies LLC, an on-demand printer of checks, money orders and other banking documents, from fellow private equity firm Liberty Partners. Berkery Noyes advised Source in the sale to StoneCalibre.
California investment firm StoneCalibre said on Monday that it has acquired Source Technologies from Liberty Partners. Berkery Noyes acted as the financial advisor to Source Technologies for this transaction.
In late May, the New York-based Berkery Noyes Investment Bankers released a white paper titled "An Overview of M&A in the Healthcare IT Sector." Shortly after the release of the white paper on Berkery Noyes’ website, Tom O’Connor gave his first interview about the report to HCI Editor-in-Chief Mark Hagland.
The healthcare IT merger and acquisition space will go through heavy consolidation over the next five years, according to Tom O'Connor, managing director at New York-based Berkery Noyes.
Investment bank Berkery Noyes & Co. LLC advised Thompson on the sale process.
LexisNexis Legal & Professional announced today that, together with Reed Elsevier Properties, it has acquired the publishing brands and businesses of Sheshunoff and A.S. Pratt from Thompson Media Group. Berkery Noyes represented Thompson Media in the sale.
Mergers and acquisitions volume and deal value in the online and mobile industries fell for the first quarter compared with year-earlier results, but some subsectors bucked the trend, according to a report by investment bank Berkery Noyes & Co.
Although a down quarter overall, Berkery Noyes CIO James Berkery attributed cloud and as-a-service interest and adoption as making up for reductions in traditional business data software and services.
The number of M&A transactions fell 7 percent to 336 acquisitions from 362 in the prior quarter, according to new data from Berkery Noyes Investment Bankers. Deal value dropped 53 percent to $7.4 billion from $15.8 billion in the fourth quarter of 2012.
The value of deals were down nearly 70% from the $25.6 billion in the the fourth quarter 2012, per investment banker Berkery Noyes. Marketing deals which continues to be the biggest category of the media and marketing sector, increased 8% in volume from the fourth quarter to around 120 deals.
Consolidation among software vendors in the governance, risk, and compliance sector seems to happen in waves that arrive every few years, and the latest wave seems to be upon us right now. So says a report from Berkery Noyes, an investment banking firm.
M&A activity in the media and marketing industry increased last year, with deal volume up 3% to 1,611 transactions compared with 1,570 transactions in 2011, according to data released earlier this year by media investment bank Berkery, Noyes & Co.
Following the release of its full year 2012 financial technology report, Berkery Noyes contributed data to a slideshow in PaymentsSource, which highlights current merger and acquisition trends in the payments industry.
"I think in terms of the quality of the deals, most people would say it was a pretty good year," said Managing Director Mary Jo Zandy, referring to the large amount of multimillion-dollar transactions in the educational sector in 2012. Last year had fewer blockbuster sales, but the steady continuation of acquisitions is a sign of a healthy market, Ms. Zandy said.
"Financial sponsors have had considerable capital on the sidelines," said Peter Yoon, a managing director at the investment bank. "Specialty vintage private equity funds are approaching an inflection point and I think currently the macroeconomic environment is showing signs of improvement."
"I think there will be some more opportunities to deploy capital this year," Mr. Shea said. "The for-profit higher-ed space will come back [while] a lot of the technology areas will start to sort out so we can see what areas are getting traction."
Information-Management.com asked for a view of the year ahead in vendor consolidation and buyout from Berkery’s CIO Jim Berkery and Managing Director Mary Jo Zandy.
A lot of the M&A activity is being fueled in part by hospitals acquiring physician practices, Managing Director Tom O'Connor told FierceHealthFinance. "The physicians have resisted (modernization), but now they have to be more efficient because it is getting too expensive to provide care in the old-fashioned way," O'Connor said.
Over the past year, mergers and acquisitions have increased considerably in the healthcare IT sector, with smaller deals yielding big returns on investment, according to report from New York-based investment bank Berkery Noyes released Jan. 11.
“We are seeing [healthcare] technology sent to private equity groups, who are not healthcare centric per se, but who are pulling toward healthcare because healthcare is in desperate need of technology innovation and fresh ideas, and fresh capital,” Thomas O'Connor, managing director at Berkery Noyes, told Healthcare IT News.
Continuing a trend since 2010, health IT continues to outpace other health, medical, a pharmaceutical products and services by a significant margin, according to trend report published by Berkery Noyes.
New York-based investment banker, Berkery Noyes, says total dollar volume climbed 17% to $76 billion last year. But the price for those deals -- in terms of revenue multiples and the cash flow multiple -- went lower.
Merger and acquisition activity in the media and marketing industry increased 3% to 1,611 transactions last year compared with 1,570 in 2011, according to investment bank Berkery Noyes.
For the year, according to new data from Berkery Noyes Investment Bankers, the number of M&A transactions in the software sector rose just 1%, to 1,529 deals.There were only 10 deals in the sector with a value of more than $1 billion, and just four with a valuation of more than $2 billion. There were no deals in the $5 billion or above category.
"There was a lot of interest from potential buyers in the United States and overseas," said Berkery Noyes.
In part two, Managing Director John Guzzo discusses the technological innovation occurring in the mortgage technology sector and the potential impact it might have on future M&A activity.
"Spending on training and perks to retain existing employees has become more important on the corporate level," Yoon explains, adding that in the preschool through 12th grade, the sector is shifting from print to digital tools, improving teacher efficacy and interaction with students.
A recent report by Berkery, Noyes & Co. LLC confirms that event deals are on the rise. The report highlighted an 85 percent increase in event transaction volume (37 deals) for the first half of 2012 compared to the first six months of 2011.
Managing Director John Guzzo participated in a roundtable discussion moderated by Mortgage Technology editorial director Mark Fogarty and managing editor Austin Kilgore.
NetLearning provides electronic training and competency management software for hospitals and other health-care companies. It has nearly one million active users, said Berkery Noyes, health care-focused investment banking firm that advised Independence, KY. based Cengage on the sale.
In a guest blog post for HousingWire, John Guzzo gives his take on some of the key highlights from the Source Media Mortgage Technology Conference.
Berkery Noyes was selected as a finalist in two categories: M&A Deal of the Year and Healthcare/Life Sciences Deal of the Year.
Berkery Noyes, who repped Great Escape in the Regal deal, described interest by "leading exhibitors in leading countries" in Europe, South America and Asia.
Advanstar Global, parent company of the biennial MAGIC Marketplace fashion shows, has acquired ENK International, owner of 14 high-end trade show fashion brands, including ENKUSA, ENKVEGAS, Fashion Coterie, Intermezzo and Sole Commerce.
The transaction announced November 16 will make ENK a separate division of Advanstar Global. ENK will have access to the new owners’ new digital “Shop the Floor” platform, which begins next year and will give users online access to sellers under the ENK and MAGIC brands.
Advanstar Global LLC , an events and information services company, said it agreed to acquire fashion trade show organizer ENK International LLC.
The publisher of Internet Retailer magazine, Vertical Web Media, has sold its e-commerce events unit to GLM, an events and association management firm run by b2b publishing veteran Charles McCurdy.
George Little Management LLC, a trade show production company backed by Providence Equity Partners, said it acquired the events group of Virtual Web Media for an undisclosed amount.
GLM has acquired the conference business of Vertical Web Media (VWM) in a move that will establish GLM in the e-commerce sector, a growing area that holds particular appeal to GLM’s trade show customers.
George Little Management continues to expand its events portfolio with the acquisition of the Internet Retailer Conference & Exhibition, an e-commerce event, and related assets from Vertical Web Media for undisclosed terms.
The reasons behind this land-grab of education assets has to do with companies' attempts to provide a more comprehensive solution by combining content with digital tools, according to Berkery Noyes adviser Peter Yoon.
“Yes, the number of transactions fell slightly, but valuation levels for privately-held middle market companies continue to increase and 2012 is on pace for a record year in terms of both the number of deals and valuation,” said Berkery Noyes Managing Director Jon Krieger.
Berkery Noyes was selected as the winner in the Healthcare IT Deal of the Year category. Overall, 46 transactions were chosen for awards from a nominee pool of more than 600 mergers and acquisitions.
Berkery Noyes Managing Director Mary Jo Zandy, in a byline article for Sand Hill, outlines the factors impacting M&A activity in the e-Discovery space."With overall legal firm technology spending still recovering from the economic downturn, 2012 is shaping up as a record year, continuing the strong rebound performance among e-discovery vendors in 2011," said Zandy.
"As the modality of instruction shifts more to a blended or online solution, the subscription-based software-as-a-service model is becoming more prevalent in the space, which is attractive to financial sponsors," said Peter Yoon, Managing Director at Berkery Noyes.
In a white paper from the firm, managing director John Guzzo wrote that rising home equity, lower excess vacant homes, and more flexible FHA refinance qualifications are all leading the originations sector to “the beginning of an upward cycle in terms of both volume and dollars.”
So far this year, there have been some 34 deals involving supply chain management or fleet management software companies, compared to 25 in all of 2011, according to Berkery Noyes.
“The opportunity to integrate data and workflow is a key strategic driver in the provider environment, and supports higher quality care, patient safety and lower costs,” said Jeffrey Smith, Managing Director at Berkery Noyes.
Investment bank Berkery Noyes reports a year-to-date 19 percent increase in healthcare and pharma IT M&A activity compared to 2011.
“Legislative incentives continue to increase the velocity of deal flow in the healthcare IT M&A market,” said Jonathan Krieger, managing director at Berkery Noyes.
Peter Yoon, Managing Director at Berkery Noyes, outlines the steps that business owners in the corporate and professional training sector can take to better position their company for a potential sale.
Berkery Noyes' representation of Healthx in its majority recapitalization by Frontier Capital was announced as an award finalist by the Global M&A Network in three categories: Private Equity Deal of the Year, USA M&A Deal of the Year, and Healthcare IT Deal of the Year.
That's why major deals in the education space are likely to focus on services, rather than the typical focus on technology, said Mary Jo Zandy, the managing director of Berkery Noyes, an investment-banking firm based that represented JBHM in the deal.
Educational technology offerings have been increasingly attractive candidates for acquirers since 2010, and indications are that will continue through the second half of 2012.
“We have a very positive outlook going forward,” said Tom O'Connor, managing director at Berkery Noyes. “I think you'll see more deals, but smaller deals. You have some b-to-b publishers in the $20 million range who may want to sell their business. They've done very well, but it may be time to sell; the market has moved.”
A bulk of the innovation is happening at smaller privately held entrepreneur owned companies that have a unique software solution or work flow tools, Tom O’Connor, Managing Director at Berkery Noyes, said.
Francisco Partners has invested in Therapeutic Research Center. Stockton, Calif.-based Therapeutic Research provides drug therapy recommendations, continuing education, training, and data to the healthcare community. Berkery, Noyes & Co. served as the financial advisor to Therapeutic Research.
Managing Director Peter Ognibene, in a byline article for Bank Systems & Technology, discusses how an integrated payments business provides banks with the best opportunity to compete.
One surprise the report notes is that PE deals in the health and pharmaceuticals space were the greatest by volume of any sector for 2012’s first half.
There were 38 deals for mobile ad-tech companies in 2011—more than triple 2009's number, according to investment bank Berkery Noyes. The firm counted 21 acquisitions in the first half of 2012.
K-12 technology leads all sectors of education in number of mergers and acquisitions so far this year, with private equity firms continuing to figure prominently in the new education landscape, according to a new report.
“Life science organizations are placing a lot of importance on cloud and SaaS models to improve planning and enrollment services related to their clinical projects,” Berkery Noyes managing director Jeff Smith says.
“The complexity of healthcare and the explosion of information and new treatments makes it impossible to do medicine the old way via human memory so software and solutions step in to assist healthcare professionals in the practice of medicine,” said Tom O'Connor.
The number of Health IT companies that have changed hands or partnered up is on the rise, according to a new report from investment banking firm Berkery Noyes.
Merger and acquisition activity in the health-care information technology sector has increased by 28% to 196 deals in the first half of 2012 compared with the second half of 2011, according to a report by midmarket investment bank Berkery Noyes.
“The healthcare M&A markets have been very active recently and the velocity of deals will increase in the foreseeable future, particularly for those companies that provide technology enabled services to payers and providers," said Jonathan Krieger, Managing Director at Berkery Noyes.
According to a report by investment bank Berkery Noyes & Co., total transaction volume in the online and mobile space is up for the first half of the year with 970 deals through June 30, up from the year-earlier period, which notched 881 transactions.
"Taylor's corporate growth strategy is centered around customer communications in compliance-driven markets and that really aligns well with Venture Encoding's offering," said John Guzzo in an interview with Mortgage Technology.
Software mergers and acquisitions are up over the first half of 2012 compared with that same time period last year, pulled along by multiple buys of SaaS and customer analytics vendors, according to investment banking advisory Berkery Noyes.
Redwood Investments bought CSP Information Group last week, a b-to-b media company that targets the convenience store and restaurant markets. The portfolio includes four magazines and associated newsletters, websites and events. The deal was brokered by Berkery Noyes, which represented Redwood.
Customer analytics was an especially popular category for acquisitions in the first half of 2012. Another popular category, especially for cloud-based software acquisitions, was human capital management (HCM), with transactions up 39 percent from the first half of 2011.
Within the software space, consumer software M&A deals was the fastest-growing segment from the year-earlier period, having grown by 29%, Berkery Noyes said. The report also suggested buyers may be paying slightly richer multiples for software businesses.
Total transaction volume in the software sector for the first half of 2012 beat both halves of last year, according to a new report by investment bank Berkery Noyes & Co.
Redwood Acquisitions, a unit of investment firm Redwood Investments, has acquired CSP Information Group Inc., a business-to-business media company serving the convenience retail, restaurant and fast food sectors. Berkery Noyes & Co. sourced the deal and represented Redwood Acquisitions as investment banker in the transaction.
Berkery Noyes, through the representation of Healthx in its majority recapitalization by Frontier Capital, has been selected as a finalist of the ACG NY Champions Awards in two categories: Healthcare/Life Sciences Deal of the Year and Information Technology Deal of the Year.
"The variety of risk profiling and stress testing that financial institutions will be subjected to requires more analytical capabilities," says Peter Ognibene, Managing Director at Berkery Noyes.
"What makes Instagram interesting is that the company itself wrote its own database to handle the massive influx of data it began to receive a few years ago," according to Keith Lubell, CTO at Berkery Noyes.
More deals among private-equity backed regional CME players could be coming. “[It's] a continuation of what we see as… the big multi-billion dollar companies divesting these assets that aren't core and are hard to scale,” said Tom O'Connor of Berkery Noyes, who represented the seller on both transactions.
"There are several properties on the market right now, and I think you'll see a pickup in deals over the balance of the year—not a huge spike, but a steady increase," said Tom O'Connor, managing director at Berkery Noyes.
“Both sectors are 10 to 20 years behind the technology curve and are in major need of unique solutions due to cost pressure in the macro environment,” O’Connor says. “On the plus side, there is a huge amount of innovation by entrepreneurs in both these markets.”
Fortunately, there are many private equity shops catering to niche businesses in the middle market, says John Shea, managing partner at Berkery Noyes, an investment banking firm. “There’s volume in the middle market and that makes it attractive to private equity. If you look at the marketplace today, there simply aren’t that many megadeals.”
The M&A Advisor today announced the winners and finalists of the 3rd Annual 40 Under 40 M&A Advisor Recognition Awards. Managing Director John Guzzo was selected as a winner in the Eastern region.
The first quarter of 2012 saw a seven percent gain in media and marketing M&A transaction volume from fourth quarter 2011, according to investment advisory firm Berkery Noyes. Transaction value also increased again in Q1 2012, up 38 percent from Q3 2011 and rising 10 percent from Q4 2011.
In a byline article featured in Mortgage Banking Magazine, Managing Director John Guzzo states that "Mortgage technology vendors and outsourcers offering solutions that provide better quality control, enhance fraud mitigation, facilitate borrower communication and improve regulatory compliance are in demand by investors and acquirers."
This must be a good sign for the economy. Last quarter, 375 software companies were acquired and their buyers spent a healthy $20 billion overall, 10 percent more than the year-ago quarter. So says Berkery Noyes in its quarterly M&A report.
Though private equity in the lower middle market has made a comeback, "it's still running for us about half of what it was in 2006 and 2007," asserts John Shea, managing partner at Berkery, Noyes & Co. LLC. "Today we're seeing about 25% to 30% of the buyers being private equity groups," Shea adds, in comparison to about 50% of Berkery Noyes' buyers in '06 and '07. Shea adds that education and healthcare IT markets are most active with PE buyers.
"A regulatory and legislative driver for the market is that Medicare, which is the country's largest payer, is reducing its reimbursement rates to healthcare providers and professionals and insurance companies," says healthcare technology banker Jonathan Krieger, a managing director at Berkery, Noyes & Co. LLC in New York.
Berkery, Noyes & Co. LLC managing partner John Shea is seeing strategic buyers acquire companies in a more focused manner amidst less competition. To illustrate, he discusses Cengage Learning Inc.'s strategic deal for the National Geographic Society's digital and print school publishing unit.
Jon Krieger, managing director at investment bank Berkery Noyes, managed healthcare IT firm Healthx’s majority recapitalization, which the company undertook in preparation for the swift market growth it anticipates. He spoke recently with Healthcare Finance News Editor René Letourneau about the transaction and its implications for the mergers and acquisitions market.
According to Jon Krieger, Managing Director at Berkery Noyes, “Private equity firms oversee $3T in global assets and due to the global economic challenges, 30% of that is sitting on the sidelines waiting to be invested
Companies specializing in cloud computing infrastructure technologies were attractive acquisition targets in 2011, according to a report from Berkery Noyes. “We saw twice the number of deals and three times the volume in terms of money spent, going from $4 billion in 2010 to $15 billion in 2011,” James Berkery, CIO of Berkery Noyes said.
The $2.25 billion buyout of Internet domain seller GoDaddy.com LLC helped fuel a 28% increase in yearly transaction value for media focused-takeovers, according to a report out investment bank Berkery Noyes & Co.
It’s a seller’s market for young and small companies that have cornered any technology related to security, mobile wallets or Near Field Communication technology, says Peter Ognibene, managing director at Berkery Noyes.
Many of 2011’s highest-profile transactions in K-12 involved content companies and technology companies. "The level of activity is higher than it ever has been before,” said Mary Jo Zandy, the managing director of Berkery Noyes, which both tracks and advises companies in merger and acquisition deals.
“We’re seeing a lot of interest from both strategic and private equity buyers looking to acquire private HIT companies to penetrate the healthcare market,” said Berkery Noyes managing director Jon Krieger.
Berkery Noyes, in an article published in Chief Marketer, examines the factors that marketing service companies should consider before going to market.
Investors also see a growing market in digital education companies. In 2011, deals in the ed-tech sphere totaled $10 billion, which was flat compared with the prior year, but up from $5.4 billion in 2009, according to figures just released by investment banking firm Berkery Noyes.
Berkery Noyes explained how digital spending has constricted b-to-b media activity and discussed some areas where b-to-b media companies might be looking to buy in the future.
“SaaS providers are constantly updating their systems to reflect knowledge learned from one customer and making it available for all customers,” said Berkery Noyes managing director Jon Krieger.
Healthx's selling points included its large customer base and the technology platform it built over 15 years, according to managing director Jon Krieger, who said that with expenditures in the health-care sector rising, health providers and insurers are always looking to reduce costs.
Valuations for the deals done for the large companies in growth markets in education are at record levels, Mary Jo Zandy, managing director at the investment bank Berkery Noyes.
Investment bank Berkery Noyes said that it advised Healthx Inc. on its majority recapitalization by growth equity firm Frontier Capital. Terms of the deal were not released. Healthx is based in Indianapolis and provides healthcare information technology to insurers and physicians.
Below is a list of the top 10 deals in terms of payout for 2011, which had bested the previous year’s transaction values by the third fiscal quarter, according to financial advisory Berkery Noyes.
Paris-based Publicis Groupe, the parent of Digitas, Starcom MediaVest Group and Zenith Optimedia Group, was the “most active acquirer by volume” between 2009 and 2011, according to a year-end media and marketing industry mergers and acquisitions report released late Wednesday by investment bank Berkery Noyes.
And as there's no reason to expect an improvement in conditions anytime soon, WebMD may be looking to make some big changes to its business model – changes that could rattle investors, says Tom O'Connor, managing director of media banker Berkery Noyes.
Mid-market private equity firm SFW Capital Partners has completed a majority investment in Buyers Laboratory, a provider of analytical testing and competitive intelligence services to the digital imaging and document management industry.
According to Jon Krieger, managing director in healthcare investment banking for Berkery Noyes, corporate borrowers have learned to borrow when they can after extended periods of illiquidity. "The debt markets had essentially been closed for a long time," Krieger said, "and with the economy improving, the ability to borrow has improved as well."
Tom O'Connor, managing director at New York City-based Berkery Noyes, says M&A activity is being driven in part by the regulatory environment.
The Company continues negotiations with several companies that it deems significant strategic acquisition/merger prospects. To assist the Company in assessing its strategic plans, the Company has retained the investment advisory firm of Berkery, Noyes & Co.
When including deals done by its subsidiary VMware, EMC announced a total of eight purchases this year, plus one transfer of assets and one deal that wasn't announced but seemed to have happened anyway, according to Mary Jo Zandy, managing director at Berkery Noyes.
Merger and acquisition activity in the information sector (media, software and online companies) was up 17% quarter on quarter in Q3 2011, reaching 108 transactions, according to a new report from investment bank Berkery Noyes.
What is clear from all of the transactions on the EM Mergers and Acquisitions Index for the third quarter is that technology is central to almost all of them.
Transactions in the information management space are up from 2010 and that is expected to carry on into 2012 through a mix of market interest and vendor positioning, according to new findings from merger and acquisition advisory firm Berkery Noyes.
Berkery Noyes, specializing in information content and technology industries research, attributed the sharp increase in transaction value to the Blackstone Group’s announced third quarter acquisition of Emdeon for $3.03 billion, the largest transaction thus far in 2011.
John Shea says the education sector - across the board - is a sector to watch for the remainder of the year. "M&A volume was ghastly in the education space during the first half of 2011, but things started to look up during the third quarter when a number of large deals were announced," says Shea.
The anticipation of and response to the actual Federal Rules of Civil Procedure revisions in 2006 entailed a tremendous growth opportunity for e-discovery companies and fostered a spate of deals.
According to Tom O'Connor, the fastest way to grow is to acquire the best small business out there. O’Connor also noted, “Volume is up, but price per deal is down because the real action is in smaller, privately-held companies.”
According to the a recent report by Berkery Noyes, “companies focused on technology-based instruction and tools for data collection and analysis are thriving in the K-12 market.”
Smaller deals, less than $100m in enterprise value, will trump their larger counterparts in upcoming healthcare M&A, says Thomas O'Connor, managing director at Berkery Noyes, in this video interview with The Deal Pipeline.
At the mid-year point, the number of deals announced stands at 112, compared to 140 for the first six months of 2010 and 81 for the first six months of 2009, according to investment bank Berkery Noyes.
As an investment firm, it would make sense for Berkery Noyes to focus on education; its website states the industry’s revenue in 2010 was $68.5 billion, with money flowing in from instructional materials, education and administrative software, and to public and private schools and institutions.
Tools for data collection and analysis are thriving in the K-12 market, says a new report by Berkery Noyes, an independent investment bank.
Hearst’s U.K. division, the National Magazine Company, is officially merged with Hachette Filipacchi UK Ltd. According to investment banking firm Berkery Noyes, this was one of the most valuable transactions of first half 2011.
Berkery Noyes data shows that while total aggregate deal value fell 38 percent to $2.2 billion from $3.5 billion in 2nd Half 2010, transaction volume remained relatively consistent, a decrease of only seven transactions compared to the 1st Half 2010.
Veronis Suhler Stevenson (VSS) has acquired the financial software company Strata Decision Technology. Roughly six months ago the company turned to John Shea and Jeffrey Smith of Berkery, Noyes, & Co., to assist with an auction process.
The pace of merger and acquisition activity in the Internet and mobile industries accelerated in the first six months of 2011 compared with the same period a year ago, according to a report from investment banking firm Berkery Noyes.
A study released by Berkery Noyes examines the acquisition and merger tendencies of the online and mobile industry. Beyond a continuing increase in activity for the industry on the whole, both Google and Microsoft have been especially active in the first half of 2011.
“From my view, sometimes something—whether it’s a joint venture or some kind of commercial relationship and not even an M&A—could be transpiring, but people who aren’t close to it and are just kind of looking in maybe think that there’s something bigger there than there really is,” said John Guzzo, a managing director at investment bank Berkery Noyes.
Investment banking firm Berkery Noyes released data Wednesday showing M&A activity in the media and marketing sector increased 14% so far this year over the previous six months, while dollars spent soared 68%.
The number of transactions increased 14% to 644 in the first half of the year compared with the year-earlier period, according to a report from Berkery, Noyes & Co. called “Half Year Mergers and Acquisitions Trends Report for the Media & Marketing Industry.”
HMP acquired the monthly publications for an undisclosed price from London-based United Business Media. Media investment bank Berkery Noyes advised UBM on the sale.
“A lot of shareholders had been former employees for a long time, so I think there was a desire to get them some liquidity," said Tom O'Connor, the managing director of Berkery Noyes in New York.
NY based Berkery Noyes, an independent investment bank specializing in the information content and technology industries, released its First Quarter 2011 Media Industry M&A Report this week.
Both the volume and aggregate value of media M&A deals in the first quarter outperformed each quarter of 2010, according to a report released by investment bank Berkery, Noyes & Co.
Some $13.8 billion in deals were transacted in the first quarter of 2011 -- that's more than half of the $28.6 billion posted for all of 2010, according to investment bankers Berkery Noyes.
The pace of media deal-making in early 2011 is outpacing 2010 considerably, according to the latest tracking from Berkery Noyes.
After a disappointing fourth quarter of 2010 (with $2.4 billion in transaction value) in the media industry, investment bank Berkery Noyes reports an upswing for first quarter 2011, to the tune of $13.8 billion in transactions.
The median EBITDA multiple for software deals rose from 10x in 2009 to 11.9x in 2010, according to investment bank Berkery Noyes, while the median revenue multiple jumped from 1.5x to 1.8x.
The education mergers and acquisitions market is still waiting for the first big deal of 2011, but when it comes it likely will be in the K-12 technology space, as bridging learning gaps and individualizing learning continue to be priorities for schools.
“Private equity is hot, hot, hot for companies in the information sector." That’s according to John Shea, COO of Berkery Noyes, a New York investment bank which advises on tracks deals in the information sector.
John Shea, chief operating officer of investment bank Berkery Noyes, isn't a big fan of the piecemeal deal. In particular, he takes issue with the 'right of first refusal' agreement that is usually a component to these transactions. "We actually advise against it," he describes, noting that it can have "a dampening effect" on the overall valuation down the line.”
It’s been said that the state of the technology industry is a bellwether for the larger global economy. At least that’s the view of John Shea, COO at boutique investment bank Berkery Noyes. "M&A is an indicator of people’s view of the economy three or four years down the road," he said.
In January, for instance, Berkery, Noyes & Co. reported the number of media and information deals increased to 687 last year, a 27% bounce from 2009. The value of those deals totaled $24.0 billion, a 35% plunge from the previous year, which saw several huge deals, such as Thomson Corp.'s $17.58 billion acquisition of Reuters Group.
A 2010 M&A trends report from investment banking firm Berkery Noyes finds media industry transaction volume on the rise (up 27 percent) even as total transaction values fell 35 percent in 2010 compared to the year before, from $37 billion to $24 billion.
The total number of deals also jumped - by 13 percent to 224 last year from 199 in 2009, according to Berkery Noyes, which noted there were 53 financially sponsored transactions in 2010, with an aggregate value of $2.8 billion. By comparison, there were 171 strategic deals.
At this time, virtually every loan origination solution provider is considering a merger and acquisition (M&A) event, specifically with an eye toward becoming or being part of a larger end-to-end solution.
A report from Berkery, Noyes & Co. tabulated that the number of deals increased to 687 last year, a 27% bounce compared with 2009.
In a statement accompanying the report, Berkery Noyes CIO James Berkery said, “Multiples have started to make a return to pre-crisis levels. There are more deals happening and there are higher valuations. While we’re not at the levels we saw in 2007, I think we’re well on the road to recovery.”
LRP Publications, which serves the legal, government and education markets, sold its Public Employment Group and Bankruptcy/Banking Products Group to Thomson Reuters. Berkery, Noyes & Co. handled the deal.
There was a 27% rise in deals to 687 last year, according to Berkery Noyes, an investment bank specializing in the information content and technology industries.