1st Half 2022 Online & Mobile Industry Trends

1ST HALF 2022 KEY HIGHLIGHTS

The largest mobile related deal in 1st Half 2022 was Take-Two Interactive Software’s acquisition of Zynga, a developer of social games that have been downloaded more than four billion times on mobile devices, for $12.51 billion.

There were 339 financially sponsored transactions with an aggregate value of 63.79 billion, representing 20 percent of the total volume and 29 percent of the total value, respectively.

1ST HALF 2022 KEY TRENDS

Total transaction volume in 1st Half 2022 increased by two percent over 2nd Half 2021, from 1,686 to 1,714.

In terms of acquirer type, strategic volume rose ten percent on a half year basis, from 1,251 to 1,376. Private equity volume decreased 22 percent, from 435 to 339.

Total transaction value in 1st Half 2022 gained six percent over 2nd Half 2021, from $206.95 billion to $219.97 billion.

The median revenue multiple declined from 3.6x in 2nd Half 2021 to 3.1x in 1st Half 2022. The median EBITDA multiple fell from 21.7x in 2nd Half 2021 to 11.0x in 1st Half 2022, returning to its 1st Half 2021 level.

The segment with the largest rise in volume in 1st Half 2022 over 2nd Half 2021 was E-Marketing & Search with a 17 percent improvement, from 283 to 331 transactions.

M&A MARKET OVERVIEW

Berkery Noyes tracked 8,200 Online & Mobile transactions between 2020 and 1st Half 2022, of which 1,592 disclosed financial terms, and calculated the aggregate transaction value to be $646.97 billion. Based on known transaction values, we project values of 6,608 undisclosed transactions to be $186.40 billion, totaling $833.37 billion worth of transactions tracked over the past two and a half years.

Transactions from 1st Half 2020 to 1st Half 2022 with enterprise values above $160 million received a median revenue multiple of 5.7x, whereas those in the $10-$20 million range garnered a median revenue multiple of 2.5x.