2009-07-06 Berkery Noyes Releases 1st Half 2009 Online Merger & Acquisition Trends – E-Commerce and Software as a Service Shows Resilience
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New York, July 6, 2009 – As expected, deal activity in the Online Industry as a whole has shown severe negative growth. Total transaction value in the 1st Half of 2009 decreased by 49% over the 1st Half of 2008, from $15.03 billion to $7.68 billion. However, in stark contrast to the overall downtrend, the number of transactions for the E-Commerce and Software as a Service (SaaS) segments has remained flat while the aggregate value of E-Commerce transactions specifically has increased by 17% from $2.81 billion in the 1st Half of 2008 to $3.29 billion in the 1st Half of 2009, proving that these segments remain important to the online marketplace. In comparison, the number of transactions in the E-Content and E-Marketing & Search segments both dropped approximately 22%.
While the 1st Half ratio of financially sponsored transactions to the total volume of deals in the Online Industry has remained fairly consistent over the last two and a half years – ranging from 10% to 14%- in terms of value the ratio has shrunk dramatically from 25% in the 1st Half of 2007 to only 5% in the 1st Half of 2009. Taking that into account, it can be concluded that the steep decline in aggregate value of transactions represents a definitive transition from large, heavily leveraged transactions to smaller, cash-based deals.
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Berkery Noyes defines the "Online Industry" as internet centric; software, content and services as opposed to offline equivalents.
Berkery Noyes provides skilled transaction management to publicly traded and privately held businesses and private equity groups in both sell-side and buy-side mergers and acquisitions. We have managed transactions ranging from several million to more than four billion dollars in value, with an emphasis on mid market transactions of $10 million to $500 million in enterprise value.
Our clients include private companies seeking a buyer, most of the major international information companies, and private equity firms who use the firm’s expertise in locating, analyzing and negotiating with acquisition candidates and in managing divestitures. The firm operates with a staff of forty professionals serving the information industry.
For more information, visit www.berkerynoyes.com or call John Shea or James Berkery at (212) 668-2022.