Third Quarter Key Highlights
- The most active acquirer through Q3 2010 was Morningstar, Inc., with four acquisitions: Seeds Finance SA, Old Broad Street Research, Aegis Equities Research, and Realpoint, LLC.
- The largest transaction for Q3 2010 was the purchase of RBS WorldPay, Inc. by Bain Capital and Advent International Corporation for $1.7 billion.
Third Quarter Key Trends
- Total transaction volume in Q3 2010 decreased by 16 percent from Q2 2010, from 63 to 53 transactions.
- Total transaction value in Q3 2010 decreased by 47 percent over Q2 2010, from $9.1 billion to $4.8 billion. This sharp decline is affected by the number of large transactions in Q2, with 4 of the top 10 largest deals occuring within Q2.
- Despite these quarterly downturns, 2010 has already surpased the full year of 2009 in value, $16 to $18 billion, and has nearly done so in volume, 181 to 175 transactions.
Multiples & Value Trends
- Median multiples have shown marked growth from 2009 to the first nine months of 2010. Median EBITDA multiples rose from 8.4 to 16.4, a 95 percent increase, while median revenue multiples rose from 1.6 to 2.6, a 63 percent increase.
- The acquisition of DataCash Group plc by MasterCard Inc. represents a revenue multiple of 8.2 and EBITDA multiple of 17.9.
Top Ten Deals Through Q3 2010
- The top ten deals by value have shifted only slightly since our half year report, with two acquisitions entering the list from Q3 2010: MasterCard Incorporated’s acquisition of DataCash Group plc for $516 million and Bain Capital and Advent International Corporation’s purchase of RBS WorldPay, Inc. for $1.7 billion.
- These two acquisitions represent 57% of the total value of all Q3 2010 transactions, $2.2 billion of $3.85 billion value of deals.