Q3 2011 Information, Private Equity Industry Trends

The most active acquirer through Q3 2011 was Thomas H. Lee Partners, L.P. with 13 acquisitions, 3 of which occurred in the third quarter: Collaborative Fusion, Inc., Syndicated Methods, Inc., and the telecommunications business of PivotPoint Solutions.
The largest announced transaction in Q3 2011 and through the third quarter was Kohlberg Kravis Roberts & Co. and Silver Lake Partners’ acquisition of GoDaddy.com for $2.25 billion.

Total transaction volume in Q3 2011 increased by 17 percent over Q2 2011, from 92 to 108 transactions.
Total transaction value in Q3 2011 decreased by 3.5 percent over Q2 2011, from $8.5 billion to $8.2 billion.

Median EBITDA multiples from 2010 to the first nine months of 2011 went from 10.7 to 11.0, a 3 percent increase, while median revenue multiples stayed the same at 1.8.
Median value has improved from 2009 and 2010, due in part to the large value of transactions in Q2 and Q3 2011.

The top ten deals by value have changed since our half year report, with two acquisitions entering the list from Q3 2011: Kohlberg Kravis Roberts & Co. and Silver Lake Partners’ acquisition of GoDaddy.com and Providence Equity Partners Inc.’s acquisition of Blackboard Inc.
These two acquisitions, with an aggregate value of $3.96 billion, represent 18 percent of total transaction value in the 1st 3 Quarters of 2011, and 48 percent of Q3 2011 transaction value.