1987 2015 outsell signature event - jegi · 2015-12-14 · 2014 2015 january ‐ august ......

2015 Outsell Signature Event October 1, 2015www.jegi.com

Since 1987

Annual M&A Outlook

presented byWilma JordanFounder & CEO

Jordan, Edmiston Group, Inc.

2015 Outsell Signature Event


A Vibrant M&A Market

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We are happy to report that M&A activity continues to show steady growth and is finally nearing 2007 levels!


Continued Gains in Deal Volume & Value

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M&A Activity: Some Sectors are Sizzling

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Software & Tech‐Enables Services: Over 60% of Volume, 55% of Value; Major Growth for Red‐Hot Exhibitions & Conferences Sector

Sector No. of Deals

Value (millions)

No. of Deals

Value (millions)

No. of Deals

Value

B2B Media & Technology 74 $3,892 66 $5,340 (11%) 37%

Consumer Media & Technology 137 $13,444 140 $13,053 2% (3%)

Database & Information Services 48 $3,131 40 $6,320 (17%) 102%

Exhibitions & Conferences 34 $410 53 $3,255 56% 694%

Marketing Services & Technology 395 $25,530 411 $17,686 4% (31%)

Mobile Media & Technology 93 $3,020 109 $5,712 17% 89%

Software & Tech‐Enabled Services 954 $41,988 958 $50,546 0% 20%

Sources: JEGI Transaction Database and 451 GroupNotes: Facebook's $19 billion acquisition of WhatsApp in Q1‐14 is not reflected in the transaction values; some Software & Tech‐Enabled Services

transactions are also duplicated in the Media, Marketing, and Mobile sectors

JEGI M&A Activity by Sector

2014 2015January ‐ August January ‐ August % Change


Source: JEGI Transaction Database and 451 Group

Number of Deals Transaction Value

Strategic Buyers accounted for nearly 80% of deals and over 70% of value in 2015 through August

Strategic Buyers Lead the Way

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Debt Leverage Ranging Higher

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More cautious regulator guidance on leveraged lending keeps banks edgy, but still engaged

Still, Q2 2015 volume of $34 billion outpaces Q1 by 8.2%, as sponsored volume grows 16.7% and non‐sponsored volume 4.1%

Banks more willing to provide senior leverage over 3x EBITDA on M&A transactions in Q3

Non‐Sponsored Senior Debt to EBITDA Multiples

Source: Thomson Reuters LPC, and U.S. Bank Internal middle market pricing data


Key Trends in M&A

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Strategic Consolidation in Financial Data/Information1

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3

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Significant Investment in Online Video to Capture Audience

Growth Equity Investment in Marketing Software/Technology

Traditional Media Invests in Data Tech to Drive Better Advertising Buys

5 Asian Buyers Active in 2015


Data

acquires

Target Thomson Reuters’ Fiduciary Services and Competitive Intelligence business from its Lipper division

Buyer Rationale Expands Broadridge’s leading enterprise data and analytics solutions for mutual fund manufacturers, ETF issuers and fund administrators, adding new data and research capabilities

Insider View “Adding these solutions to our well established mutual fund and retirement business provides our clients and the industry with a comprehensive suite of compliance oversight, fee benchmarking and competitive intelligence solutions.”

Gerard Scavelli, President, Broadridge Mutual Funds and Retirement Solutions Group

Deal Size Confidential (JEGI transaction)

Strategic Consolidation in Financial Data/Information

Case Study1

8

Assets of


Data

acquires

Target Overview A global leader in data analytics and commercial intelligence for the energy, chemicals, metals and mining verticals

Buyer Rationale Establishes Verisk as a trusted data analytics provider at the center of the global energy market and advances Verisk’s strategy to expand internationally

Insider View “Wood Mackenzie has significant opportunities in the global energy, chemicals, metals and mining verticals, a track record of consistent revenue growth and profitability, distinctive and mission‐critical solutions, and an impressive management team.”

Scott Stephenson, President & CEO, Verisk Analytics

Deal Size $2.8 billion

Strategic Consolidation in Financial Data/Information

Case Study1

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Data

acquires

Target Overview Provides various digital brands, products and services to consumers, advertisers, publishers and subscribers worldwide

Buyer Rationale Build Verizon’s digital and video platforms to drive future growth, including its LTE wireless video and OTT (over‐the‐top) video strategy

Insider View “Verizon’s vision is to provide customers with a premium digital experience based on a global multiscreen network platform. This acquisition supports our strategy to provide a cross‐screen connection for consumers, creators and advertisers to deliver that premium customer experience.”

Lowell McAdam, Chairman & CEO, Verizon



Case Study2

10


Data

acquires

Target A leading online learning company teaching business, technology and creative skills to help people achieve their professional goalsBuyer Rationale Empower people around the world to develop the skills needed to accelerate their careers through access to information, learning and professional development

Insider View “The mission of LinkedIn and the mission of lynda.com are highly aligned. Both companies seek to help professionals be better at what they do… When integrated with the hundreds of millions of members and millions of jobs on LinkedIn, lynda.com can change the way in which people connect to opportunity.”

Jeff Weiner, CEO, LinkedIn



Case Study2

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Data

acquires

Target An international SaaS platform delivering omnichannel audience engagement

Buyer Rationale HGGC’s investment will help the rapidly growing company expand into new markets, particularly the United States, and broaden its technology platform

Insider View “Increased complexity of businesses and diversity of consumer data sources, along with the push for meaningful customer interactions, is driving the rapid adoption of sophisticated marketing automation solutions…Selligent’s platform was built to accommodate these demanding challenges, and produce strong marketing results.”

Hudson Smith, Principal, HGGC

Deal Size Confidential (JEGI & Clarity transaction)


Case Study3

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Data

acquires

Target A leading software company for the advertising world, and the only open cross‐media software platform that enables more than 80,000 users to bridge traditional and digital media

Buyer Rationale Vista’s involvement will accelerate global growth and further drive product innovation for Mediaocean

Insider View “Our vision has always been to provide advertisers, agencies, broadcasters and publishers with a top‐tier, converged advertising ecosystem. Partnering with Vista will allow us to accelerate progress in achieving this goal, while solidifying our leadership in the industry.”

Bill Wise, CEO, Mediaocean

Deal Size Deal values Mediaocean at approximately $720 million


Case Study3

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Data

acquires

Target Provider of a Big Data discovery and data sharing platform that combines cloud‐based analytics with access to disruptive datasets on a single platform

Buyer Rationale Advance will provide 1010data with the capital required to accelerate the market adoption of its platform, whose disruptive value proposition has been challenging the traditional business intelligence and data warehouse vendors

Insider View “Advance believes that 1010data has a compelling vision for helping businesses unlock their true potential through data. It has created a truly innovative approach that is speeding this transition across industries.”

Nomi Bergman, President of Advance’s cable television affiliate, Bright House Networks

Deal Size $500 million


Case Study4

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Data

acquires

Target Overview A leading provider of data and technology to facilitate the buying and selling of advertising across programmatic platforms

Acquisition Rationale Allows Nielsen to enable its clients to make better and faster marketing and media decisions with the ability to activate in real‐time Nielsen audience insights as well as eXelate’saggregated consumer segments from over 200 data providers

Insider View “This acquisition creates a tremendous opportunity for Nielsen in the programmatic media ecosystem. Adding eXelate’s solutions to the Nielsen family furthers our ability to help marketers improve the effectiveness of their advertising campaigns and to help media companies better sell their content.”

Steve Hasker, Global President, Nielsen


Case Study4

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Data

acquires

Target World Triathlon Corporation is the owner and organizer of the Ironman races, a series of long‐distance triathlon races

Buyer Rationale Traditionally a Chinese property developer, Dalian Wanda Group aims to diversify its business with a push into entertainment and sports, as the company encounters a slowdown in its domestic property market

Insider View “Wanda Group is a global‐minded organization that shares our desire for excellence and continued growth, particularly in Asia.”

Andrew Messick, Chief Executive Officer, World Triathlon Corporation


Asian Buyers Active in 2015

Case Study5

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Data

acquires

Target Overview A business news organization that provides essential news, comment, data and analysis for the global business community

Acquisition Rationale Nikkei, currently focused almost exclusively on the Japanese market, is looking to expand its global reach

Insider View “Our motto of providing high‐quality reporting on economic and other news, while maintaining fairness and impartiality, is very close to that of the FT. We share the same journalistic values. Together, we will strive to contribute to the development of the global economy.”

Tsuneo Kita, Chairman and Group CEO, Nikkei


Asian Buyers Active in 2015

Case Study5

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Predictions for the Next 12 Months

1. Strong debt markets will continue to drive M&A volume, despite likely incremental interest rate increases by the Federal Reserve

2. Driven by large capital reserves and need for growth, global corporations and private equity firms still have healthy appetites for M&A

3. Political environment will drive increase in spending in advertising and data & analytics, through the 2016 election

4. Economy continues to grow – driven by corporate investment, low unemployment and the political cycle

5. Far East buyers remain active in acquiring US companies, particularly China‐based buyers with capital parked offshore

6. US and European stock markets will continue to see strong swings and volatility…

Predicting the Future

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Closing

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…as China’s economy becomes the new “BEAR” market

1987 2015 outsell signature event - jegi · 2015-12-14 · 2014 2015 january ‐ august ......

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