Q3 2013 Information Industry Trends

Q3 2013 KEY HIGHLIGHTS

• Publicis Groupe SA’s announced merger with Omnicom Group Inc. was the largest transaction both in Q3 2013 and year-to-date, with an acquisition price of $20.5 billion. This number represents the value of the new stock distributed to Omnicom’s shareholders and Omnicom’s net debt assumed by the new company. The combined equity market capitalization of the transaction was $35.1 billion.
• There were 333 financially sponsored transactions in the 1st 3 Quarters of 2013 with an aggregate value of 31.6 billion, representing 13 percent of the total volume and 23 percent of the total value, respectively.

Q3 2013 KEY TRENDS

• Total transaction volume in Q3 2013 increased by six percent over Q2 2013, from 877 to 930.
• Due to the Publicis-Omnicom merger, total value in Q3 2013 rose by 41 percent over Q2 2013, from $50.6 billion to $71.2 billion.

MULTIPLES & VALUE TRENDS

• The median revenue multiple from 2012 through the 1st 3 Quarters of 2013 experienced an uptick, from 1.9x to 2.1x.
• The median EBITDA multiple from 2012 through the 1st 3 Quarters of 2013 moved slightly, from 9.9x to 10.2x.

TOP TEN DEALS THROUGH Q3 2013

The top ten deals by value have seen five new additions since our half year report, including three in the horizontal software market: the announced management buyout of Activision Blizzard, Schneider Electric SA’s acquisition of Invensys Inc., and Cisco Systems, Inc.’s acquisition of Sourcefire, Inc.

These five transactions, with an aggregate value of $38.9 billion, represented 28 percent of transaction value in the 1st 3 Quarters of 2013 and 55 percent of Q3 2013 transaction value in the Information Industry.