August 6, 2013 DEAL ACTIVITY REMAINS STEADY IN THE INFORMATION INDUSTRY

According to Berkery Noyes latest research, M&A volume in the Information Industry decreased by less than one percent since second half 2012, from 1,695 to 1,683 transactions. Deal value declined 27 percent, from $89.20 billion in second half 2012 to $64.71 billion in first half 2013. 

The peak for transaction volume during the past two-and-a-half years occurred in first half 2012, whereas value reached its zenith in first half 2011. The median revenue multiple over the past six months moved slightly from 1.9x to 2.0x, while the median EBITDA multiple increased from 9.9x to 11.2x.

The number of deals involving consumer mobile applications increased 28 percent, totaling 64 transactions in first half 2013. As for mobile applications focused on driving assistance and mapping navigation technology, M&A transactions by notable acquirers included Google’s acquisition of Waze and Harman International’s acquisition of iOnRoad Technologies.

Meanwhile, established software companies are making acquisitions with a focus on the cloud. Adobe Systems, after acquiring online social media platform Behance in late 2012 to expand its “Creative Cloud,” made several acquisitions in first half 2013 to further build its cloud model. Along these lines, Adobe acquired mobile software development company Thumb Labs and design agency Ideacodes. Adobe also made a major move to expand its “Marketing Cloud” with the acquisition of Neolane for $600 million.