Q3 2016 KEY HIGHLIGHTS
- Strategic acquisitions represented 86 percent of the industry’s total volume and 77 percent of total value in Q3 2016, respectively.
- The highest value sponsored transaction in Q3 2016 and year-to-date was a Chinese consortium’s announced acquisition of Playtika, a social and mobile games company based in Israel, for $4.4 billion. Among the consortium’s acquirers was Yunfeng Capital, the private equity firm founded by Alibaba Group Chairman Jack Ma.
Q3 2016 KEY TRENDS
- Total transaction volume in Q3 2016 declined by nine percent over Q2 2016, from 1,160 to 1,051.
- As for the industry’s horizontal markets, Online & Mobile volume fell by 11 percent; Software volume decreased by nine percent; and Media & Marketing volume moved downward by seven percent.
- Total transaction value in Q3 2016 lost five percent over Q2 2016, from $94.6 billion to $89.4 billion.
MULTIPLES & VALUE TRENDS
- The median revenue multiple from 2015 through the 1st 3 Quarters of 2016 remained almost constant at 2.0x.
- The median EBITDA multiple from 2015 through the 1st 3 Quarters of 2016 stayed nearly the same at 11.3x.
TOP TEN DEALS THROUGH Q3 2016
The top ten deals by value have seen four new additions since our half year report. Oracle Corporation’s announced acquisition of NetSuite for $9.3 billion was the second highest value deal ever completed by Oracle, slightly behind the company’s acquisition of PeopleSoft for $10.3 billion in 2004.
These four transactions, with an aggregate value of $27.2 billion, represented 11 percent of transaction value in the 1st 3 Quarters of 2016 and 30 percent of Q3 2016 transaction value.