Q1 2015 Online & Mobile Industry Trends Report
Online & Mobile transaction volume saw a four percent uptick over the past three months, from 670 to 696. Deal value gained 15 percent, from $22.6 billion to $26.1 billion. Volume throughout the past five quarters reached its peak in Q1 2015, whereas value reached its zenith in Q1 2014. The top ten largest transactions accounted for 28 percent of the industry’s total value in Q1 2015, compared to 34 percent in Q4 2014 and 61 percent in Q1 2014.
SaaS & Cloud volume increased for the fifth consecutive quarter with a 17 percent rise in Q1 2015. This was the segment’s largest quarter-to-quarter increase during the last five quarters. It also remained the most active Online & Mobile market, representing 30 percent of the industry’s aggregate volume year-to-date.
E-Commerce deal activity remained about constant over the past three months. This followed a 33 percent rise in Q4 2014. The E-Commerce segment represented four of the overall industry’s top ten largest deals in Q1 2015. Online travel giant Expedia was responsible for two notable segment transactions, acquiring rival Orbitz Worldwide for $1.7 billion and Travelocity.com for $280 million. These deals highlight the significant consolidation that has occurred in the travel sector, leaving Expedia and Priceline as the two dominant U.S. based online travel agencies.
Meanwhile, the number of transactions in the consumer application subsector rose 18 percent, from 57 to 67. Clothing manufacturer Under Armour completed two mobile-based deals in Q1 2015 relating to digital health data, nutrition information, and fitness tracking. This consisted of Under Armour’s acquisitions of MyFitnessPal for $475 million and Endomondo for $85 million. These two transactions will build upon Under Armour’s previous acquisition of MapMyFitness for $150 million in 2013.