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Trend Reports

2016 Mid Year

 
 

2016 l 1st Half l Trends Report l Information Industry

Monday, July 11, 2016

1ST HALF 2016 KEY HIGHLIGHTS

  • Each of the Information Industry's top ten highest value deals in 1st Half 2016 were completed by strategic acquirers. These ten acquisitions combined accounted for 46 percent of the industry's aggregate value year-to-date.
  • There were 328 financially sponsored transactions with an aggregate value of $25.39 billion, representing 15 percent of the total volume and 16 percent of the total value, respectively.

1ST HALF 2016 KEY TRENDS

  • Total transaction volume in 1st Half 2016 saw a slight uptick over 2nd Half 2015, from 2,207 to 2,234.
  • As for the industry's horizontal markets, Online & Mobile deal volume rose by nine percent; Software volume improved by four percent; and Media & Marketing volume declined by seven percent.
  • Total transaction value in 1st Half 2016 fell by 29 percent over 2nd Half 2015, from $224.95 billion to $158.98 billion. However, aggregate value gained 38 percent on a year-over-year basis.
  • The median revenue multiple shifted from 2.0x to 2.1x, while the median EBITDA multiple declined from 12.3x to 11.3x.

M&A Market Overview

Berkery Noyes tracked 10,638 Information Industry transactions between 2014 and 1st Half 2016, of which 2,299 disclosed financial terms, and calculated the aggregate transaction value to be $552.97 billion. Based on known transaction values, we project values of 8,339 undisclosed transactions to be $176.79 billion, totaling $729.76 billion worth of transactions tracked over the past two and a half years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.1x revenue and 11.1x EBITDA.



 

Transaction Volume/Value & Multiples

Transactional Analysis

Strategic vs. Financial Comparison

Purchaser Analysis

Transactions Involving an Online Component

Footnotes