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 Information Industry.
The Information Industry report, which Berkery Noyes defines as all media, software, and online companies, analyzes merger and acquisition activity over the first three quarters of 2011 and compares it with activity in 2010.
According to Berkery Noyes research, the report showed third quarter transaction volume increased 6 percent over the second quarter from 726 to 768 transactions. Transaction value decreased 21 percent, indicating a greater number of small and mid-sized deals.
The most active acquirer through the third quarter of 2011 was Google with 20 acquisitions, 7 of which occurred in the third quarter: DailyDeal, Zagat, Zave Networks, The DealMap, Pittsburgh Pattern Recognition, Fridge, and Punchd Labs. The largest transaction for both the third quarter and over the first three quarters was HP’s acquisition of Autonomy Corporation for $10.28 billion.
Median EBITDA multiples went from 11.9 in the second quarter to 13.8 in the third quarter, a 16 percent increase. Median revenue multiples remained nearly the same during this time period, moving from 2.2 to 2.3.
“It’s an encouraging sign that transaction volume in the Information Industry, examined on a quarterly basis, remains well above its 2010 levels. There has been a consistent trend upward for median EBITDA and revenue multiples too,” said CIO James Berkery. “Indeed, both multiples showed improvement for the third consecutive quarter.”
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 INFORMATION INDUSTRY MERGERS & ACQUISITIONS UPDATE is available at the Berkery Noyes website.