Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Third Quarter 2011 Mergers and Acquisitions Update for the Online & Mobile Industry.
The report analyzes merger and acquisition activity in the sector across the three-month period and compares it with similar activity for the six previous quarters.
According to Berkery Noyes research, the report showed transaction volume in the Online & Mobile Industry increased 9 percent over the previous quarter, from 411 to 447. Transaction value decreased 41 percent due to the largest deal, Microsoft Corporation’s acquisition of Skype Technologies SA for $9 billion, occurring in the second quarter. However, three of the top ten deals by value took place in the third quarter.
The most active acquirer year-to-date was Google with 17 acquisitions, 6 of which transpired in the third quarter. Google’s third quarter transactions included the acquisitions of DailyDeal, Zave Networks, The DealMap, Pittsburgh Pattern Recognition, Fridge, and Punchd Labs. Although four of Google’s deals remain outside of this reports purview, it is worth mentioning that Google’s acquisition of Motorola Mobility, their largest transaction to date at $12.5 billion, occurred during the third quarter.
The largest announced transaction in Berkery Noyes’ third quarter report was Kohlberg Kravis Roberts & Co. and Silver Lake Partners’ acquisition of GoDaddy.com for $2.25 billion.
Median EBITDA multiples rose from 13.0 to 13.8 since second quarter 2011, a 6 percent increase, while median revenue multiples went from 2.6 to 2.1, a 19 percent decline.
Regarding companies that operate in the mobile and online space, managing director Kathleen Thomas notes that “Google made 26 acquisitions in 2010, so with 21 acquisitions through the third quarter, 2011 looks to be another strong year for the industry giant. Overall transaction volume and EBITDA multiples are up significantly from 2010.”
Berkery Noyes specializes in Mergers & Acquisitions advisory services, in addition to structuring debt and equity transactions in the $25 million to $500 million range. Unique among investment banking firms, Berkery Noyes combines independent strategic research and industry intelligence with senior information technology banking expertise. Long having been an innovator in database and research technology in M&A, Berkery Noyes has committed itself to providing more expansive and more current information. The firm’s research teams publish acquisition activity in the respective sectors they follow on MandAsoft.com.
A copy of the THIRD QUARTER 2011 ONLINE & MOBILE INDUSTRY MERGERS & ACQUISITIONS UPDATE is available at the Berkery Noyes website.