Q1 2012 Online & Mobile Industry Trends Report

After an especially strong second half in 2011, Online and Mobile transaction volume declined four percent in Q1 2012. Deal value decreased 14 percent to $12.8 billion.

For the first time in the last five quarters, E-Marketing and Search, which accounted for 114 deals, was on par with SaaS/ASP as the most active Online and Mobile segment tracked by Berkery Noyes. SaaS/ASP, with five of the top ten deals, was the best represented segment in the top ten notable list.

Although E-Marketing and Search experienced a three percent decrease in volume during the previous quarter, the segment saw a 26 percent increase compared to Q1 2011.

The Digital Marketing component of E-Marketing and Search underwent a seven percent increase in Q1 2012. This also represented a 46 percent increase relative to Q1 2011. Mobile advertising companies were involved in several of these M&A deals. For instance, Amobee’s announced acquisition by Singapore Telecommunications (SingTel) for $321 million was the largest Digital Marketing transaction in Q1 2012.

M&A activity in the Communications segment remained nearly constant. Nuance Communications made its second Healthcare related transaction in the last nine months. Nuance, a speech and imaging technology company, acquired Transcend Services, a provider of real-time medical transcription and speech editing solutions.

This $302 million deal in Q1 2012 followed the company’s July 2011 acquisition of Webmedx.