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 Private Equity in the Information Industry.
The report analyzes merger and acquisition activity over the first three quarters of 2011 and compares it with activity in 2010.
Berkery Noyes includes in this report transactions made by financially sponsored acquirers within the Information Industry – defined as all media, software, and online companies – including acquisitions made by subsidiaries or platforms of private equity firms.
According to Berkery Noyes research, the report showed third quarter transaction volume increased 17 percent over the second quarter from 92 to 108 transactions. Transaction value decreased 3.5 percent.
The most active acquirer through the third quarter of 2011 was Thomas H. Lee Partners with 13 acquisitions, 3 of which occurred in the third quarter: Collaborative Fusion, Syndicated Methods, and the telecommunications business of PivotPoint Solutions. The largest announced transaction for both the third quarter and over the first three quarters was Kohlberg Kravis Roberts & Co. and Silver Lake Partners’ acquisition of GoDaddy.com for $2.25 billion.
Median EBITDA multiples from 2010 to the first nine months of 2011 went from 10.7 to 11.0, a 3 percent increase, while median revenue multiples remained the same during this time period at 1.8.
“Notably, two of Thomas H. Lee Partners’ third quarter transactions were related to healthcare. Ignite Health, whose ultimate parent is THL, and Intermedix, which is a consumer and healthcare subsidiary of THL, both made acquisitions. Private equity activity in healthcare technology is likely to be strong going into the near future, as evidenced by Blackstone’s acquisition of Emdeon and Vista Equity Partners’ acquisition of Sage Software in the third quarter,” said managing director Tom O’Connor.
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 PRIVATE EQUITY IN THE INFORMATION INDUSTRY MERGERS & ACQUISITIONS UPDATE is available at the Berkery Noyes website.