NEW YORK — October 2, 2012 — Berkery Noyes, an independent mid-market investment bank, today released its third quarter 2012 mergers and acquisitions trend report for the Media and Marketing Industry. The report analyzes M&A activity in the Media and Marketing Industry across the three-month period and compares it with data for the six previous quarters.
According to Berkery Noyes’ research, total volume decreased five percent, from 401 transactions in second quarter 2012 to 381 transactions in third quarter 2012. Total transaction value increased 42 percent, from $16.3 billion to $23.2 billion. The median revenue multiple rose from 1.0x to 1.5x, while the median EBITDA multiple declined from 7.2x to 6.8x.
Private equity acquirers accounted for 12 percent of transaction volume but 31 percent of aggregate value through third quarter 2012. The Carlyle Group’s announced acquisition of Getty Images from Hellman & Friedman for $3.3 billion in third quarter 2012 was the largest private equity backed transaction in the report. Aside from Advent International and GS Capital Partners’ announced acquisition of TransUnion for $3.2 billion earlier in the year, the acquisition of Getty Images was the largest private equity backed industry transaction since 2010, when Silver Lake Partners and Warburg Pincus acquired Interactive Data Corp for $2.95 billion.
In addition, M&A activity in the B2B Publishing and Information segment increased 18 percent compared to second quarter 2012. “B2B information producers continue to be attractive acquisition targets when they provide high quality data and information on a subscription basis,” stated Kathleen Thomas, Managing Director at Berkery Noyes. “Users continue to demand high quality content, accessibility through many mediums, and more interaction with content creators. All of these factors are driving interest in business information providers.”
Standing in contrast to the B2B segment, Consumer Publishing M&A experienced a 36 percent quarterly volume decrease. Notable segment transactions in the quarter consisted of Penguin Group’s acquisition of Author Solutions for $116 million and Google’s announced acquisition of Frommer’s travel guidebooks from John Wiley & Sons. The Marketing segment, meanwhile, increased nine percent relative to second quarter 2012. In an effort to rival WPP and other leading marketing firms, Dentsu, a Japanese advertising company, announced its acquisition of Aegis Group for $4.9 billion. This accounted for the largest Media and Marketing Industry transaction year-to-date.
Within the Internet Media segment, transaction volume decreased five percent on a quarter-to-quarter basis. High value Internet Media deals in third quarter 2012 included Dex One’s announced merger with SuperMedia for $1.5 billion, IAC’s acquisition of About.com from The New York Times for $300 million, Turner Broadcasting’s acquisition of Bleacher Report for $200 million, and IHS’ acquisition of GlobalSpec for $135 million. IHS has been an active acquirer during 2012, completing eight Media and Marketing Industry acquisitions thus far.
A copy of the MEDIA AND MARKETING INDUSTRY M&A REPORT FOR THIRD QUARTER 2012 is available at the Berkery Noyes website.