Q3 2010 Private Equity, Information Industry Trends

The most active acquirer through Q3 2010 was Thoma Bravo, LLC with 9 purchases: Computer Systems Company, Inc., Hershey Systems, Inc., LANDesk Software, Inc., Beyond Appraisal, Inc., SonicWALL, Inc., Double-Take Software, ManageSoft Corporation, PLATO Learning, Inc. and eWebHealth.
The largest transaction in Q3 2010 by volume was KKR’s acquisition of Visma ASA, a business software and services provider for accounting and administration headquartered in Oslo, Norway.

Total transaction volume in Q3 2010 increased by 4 percent over Q2 2010, from 70 to 73 transactions.
Total transaction value in Q3 2010 increased by 1 percent over Q2 2010, from $9 billion to $9.1 billion.

Median multiples have recovered from 2009 to the first nine months of 2010. Median EBITDA multiples increased from 10.4 to 10.5, a less than one percent increase, yet median revenue multiples rose from 1.3 to 2, a 53 percent increase.
Median value has made a return from the lows of 2009, due in large part to the strong value of transactions in Q2 and Q3 2010.

The top ten deals by value have shifted since our half year report, with 4 acquisitions entering the list from Q3 2010: KKR’s acquisition of Visma ASA, RBS WorldPay, Inc.’s acquisition by Bain Capital and Advent International Corporation, Hellman & Friedman LLC’s acquisition of Internet Brands, Inc., and GI Partners’ acquisition of SoftLayer Technologies.
These 4 acquisitions, with a total value of $4.7 billion, represent 21 percent of total transaction value for the 1st nine months of 2010, and 36 percent of the Top 10 transaction value for the 1st nine months of 2010.