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Berkery Noyes Releases First Half 2010 Information Industry Merger & Acquisition Trends - Enterprise Values Prospering

Thursday, July 08, 2010

Berkery Noyes, a leading middle market investment bank, has released its 2010 Half Year Information M&A Trends Report. This report analyzes merger and acquisition activity in the Information Industry in the first half of 2010 and compares it with activity in the four previous sixth month periods from 2008-2009.

Revenue multiples rose 38% to 2.2 in the 1st Half 2010 from 1.6 in 2nd Half 2009. This marks a return to the 30 month multiple high of 1st Half 2008.

The Information Industry saw a 21% increase in volume from Second Half 2009 to 1st Half 2010, exceeding the total volume of each of the four preceding sixth month periods, yet total transaction value decreased by 10 percent from $56.62 billion to $51.23 billion during the same period.

The decline in total transaction value is due in large part to two large transactions -- Comcast Corporation's pending acquisition of NBC Universal, a subsidiary of General Electric Company, for $13.75 billion and IMS Health's pending acquisition by TPG Capital, L.P. and CPP Investment Board for $4.01 billion -- in the final quarter of 2009. Despite this decline in aggregate value, median enterprise value has increased 19% from $20 .1 million in 2nd Half 2009 to $28.5 million in 1st Half 2010.

Marketing & Advertising saw a 17% increase in transaction volume and several notable acquisitions, namely the acquisition of Quattro Wireless by Apple, Inc., as the smartphone maker looks to increase its presence in the mobile advertising industry.

Lifestyle & Entertainment was the most active market segment within the Information Industry, with 186 transactions. A significant portion of the acquisitions involved website and video game publisher targets.