1ST HALF 2013 KEY HIGHLIGHTS
- The most active strategic acquirer year-to-date was Constellation Software with four industry transactions: QuadraMed Corporation, Quantitative Medical Systems, Inc., Club Solutions from Fiserv, Inc. and LRS Health Pty Ltd.
- The most active financial sponsor in 1st Half 2013 was TPG Capital with four industry transactions: Incential Software, Inc., 360 Vantage, Semantelli and Appature. TPG Capital had five such deals for all of 2012.
- Healthcare IT remained the most active market segment, accounting for 63 transactions or 40 percent of the industry’s aggregate volume in 1st Half 2013.
1ST HALF 2013 KEY TRENDS
- Total transaction volume in 1st Half 2013 decreased by 16 percent over 2nd Half 2012, from 188 to 157. This was on par with average volume for 2011 when examined on an historical half year basis.
- Total transaction value in 1st Half 2013 increased by 58 percent over 2nd Half 2012, from $5.08 billion to $8.03 billion. Deal value would have declined 29 percent without BC Partners’ announced acquisition of Springer Science & Business Media, a scientific, technical, and medical (STM) publisher, for $4.42 billion.
- The median revenue multiple declined from 2.2x in 2nd Half 2012 to 1.9x in 1st Half 2013. The median EBITDA multiple moved slightly from 9.8x in 2nd Half 2012 to 10.2x in 1st Half 2013.
M&A Market Overview
Berkery Noyes tracked 860 transactions between 2011 and 1st Half 2013, of which 217 disclosed financial terms, and calculated the aggregate transaction value to be $25.33 billion. Based on known transaction values, we project values of 643 undisclosed transactions to be $4.78 billion, totaling $30.12 billion worth of transactions tracked over the past two and a half years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.0x revenue and 9.9x EBITDA.