adtech m&a in 2014 and beyond: trends and drivers in an...
TRANSCRIPT
Jon Guido Linda Gridley Gee Leung Zack Lesko Sean Hurley
Partner Partner Partner CTO Analyst
AdTech M&A in 2014 and Beyond:
Trends and Drivers in an Evolving
Landscape
AGC’s AdTech M&A Update 2014
Page 2 of 10
AdTech’s momentum as a disruptive force to traditional advertising
practices continues to build in concert with technological advances
such as mobile computing and cloud delivery technologies. The role
of the media agency is being diminished and the traditional
commission payment model is giving way to programmatic real time
bidding ad impressions with a lifecycle of 200 milliseconds. Global
RTB spending is projected to grow at a 36% CAGR through 2017 to
$20.8 billion, according to IDC. With the proliferation of
smartphones, tablets and other mobile devices advertisers are focused
on providing cross-screen advertising and capitalizing on global
mobile ad spending that Magna Global forecasts to grow by a CAGR
of 35% and reach $73 billion by 2018. These industry trends coupled
with an overall increase in market size are shaping M&A activity
within AdTech.
M&A activity in the AdTech space has been strong for the year to
date. If deal activity continues at the current pace, the space will see
twice as many deals in 2014 as it did in 2013. Fourteen of these
transactions were between $100-$400 million. Additionally, the
AdTech buyer universe is expanding. More big players are jumping
into the AdTech frenzy including Yahoo, Twitter, and Adobe.
According to Ernst and Young’s Q3 2014 Technology M&A Report,
the total value of global Tech M&A activity in Q3 of 2014 was $73.7
billion. This broke the previous “post-dotcom bubble” Q3 record of
$71.2 billion in 2013. AdTech was targeted in over 100 deals in Q3
and $1.5 billion has been spent on AdTech M&A in 2014 as of
September. It was the third highest targeted sector behind only the
cloud/SaaS and mobility sectors. Subsectors that showed particularly
strong growth were video and Data Management Platforms. Video
deal activity jumped from 7 transactions in all of 2013 to 14 in 1H
2014 alone. This growth was fueled by the higher revenues produced
by video ads, as opposed to traditional banner ads, that are brought
about by the higher click through rates of video ads in comparison
with other AdTech mediums. Recent transactions in the space include
Facebook’s acquisition of LiveRail for $382 million and Opera’s June
acquisition of AdColony for $75 million in cash with a potential earn-
out of up to $275 million. The DMP subsector has also been active as
AdTech and enterprise software vendors have enhanced their focus on
the aggregation and application of data. This data is leveraged to drive
audience profiling and ad targeting in order to drive higher ROI.
Recent transactions in the Data Management Platform space are
Oracle picking up BlueKai for a price tag of $408 million and Rocket
Fuel buying programmatic marketing company [x+1] for $230
million in August 2014.
These acquisitions that are driving the continued consolidation of Ad
Tech companies, especially in the Display segment, are being fueled
0
5
10
15
20
$25
2013 2017
Global Programmatic-Based Display Spending 2013-2017 $USD in billions
Source: IDC
0
10
20
30
40
50
60
70
$80
2013 2014 2015 2016 2017 2018
Global Mobile Ad Spending 2013-2017 $USD in billions
Source: Magna Global
AGC’s AdTech M&A Update 2014
Page 3 of 10
by multiple industry-wide trends. Venture firms that have invested in
the space are seeing their investments mature and are seeking to make
profitable exits, which is aiding the supply of target companies to the
market. Larger advertisers in particular are looking to make omni-
channel impressions on consumers and many view building their
capabilities through acquisitions as a better investment than dedicating
R&D spend to develop an unproven platform internally. The
continued growth of mobile devices and the emergence of connected
TVs have incentivized advertisers to be adept at serving ads to these
channels as more and more consumers consume online video content.
Aggregation and use of mobile data has become a particularly
important initiative for many AdTech companies as use of geolocation
and purchase information are leveraged to deliver increasingly
targeted, and therefore more effective, advertising. One recent
transaction that reflects this rationale is RTL Group’s $144 million
purchase of SpotXchange, which provides behavioral in-market
targeting among other services. These trends have manifested
themselves in the transactions of active buyers in the space whose
names include some of the biggest players in the digital universe.
Active players in AdTech include media giant WPP, who has
participated as a buyer in five transactions in 2014YTD. Notable 2014
purchases for WPP include announcing the acquisitions of Twist
Image and Quirk Digital Media five days apart in May. Social media
behemoth Twitter acquired mobile ad service Namo Media and
retargeting solutions provider TapCommerce in June. New buyers
including social media firms, such as the aforementioned Twitter, as
well as telecom companies such as SingTel and Telefonica, have
entered the space by making a splash with strategic acquisitions, a
sign of the increased competition for client advertising spending. On
June 16, 2014, Amobee, a recent acquisition by SingTel, acquired
Adconion, an online cross-channel advertising firm, and Kontera, a
mobile advertising technology firm, for a combined $360 million.
Buyers place a premium on characteristics such as scale, scarcity, and
disruption. Recent transactions that are notable for their size are
Publicis’ purchase of Sapient for $3.4 billion and Yahoo’s acquisition
of digital video advertising firm BrightRoll for $640 million. Going
forward the space should see increased international expansion. As the
AdTech market in Europe reaches maturity and U.S. firms achieve
scale domestically there is anticipation in the market of increased
international deal flow.
Sources: eMarketer, Magna Global, IDC, Results International, Yahoo! Finance,
adexchanger, S&P Capital IQ, 451 Research
Source: Ernst & Young
Source: MarketWatch; As of 9/23/14;
Excludes Google’s acquisition of DoubleClick
AGC’s AdTech M&A Update 2014
Page 4 of 10
*M&A activity from 1/1/14 – 11/18/14; Source: S&P Capital IQ, 451 Research
Announced Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Revs
11/03/14 Sapient Publicis 3,400 2.5x 1,350
11/11/14 Brightroll Yahoo 640 NM ND
02/24/14 BlueKai Oracle 408 6.5x 63
07/02/14 LiveRail Facebook 382 70 5.5
3/6/2014 FreeWheel Media Comcast 360 16.4x 22
5/14/2014 LiveRamp Acxiom 310 12.4x 25
6/10/2014 Adconion Media SingTel 235 1.3x 185
8/5/2014 [x+1] Rocket Fuel 230 2.6x 90
7/22/2014 Bizo LinkedIn 175 4.4 40
6/10/2014 Kontera SingTel 150 5.8 26
7/31/2014 SpotXchange RTL Group 144 NM ND
9/23/2014 Nexage Millennial Media 115 14.3 8
5/28/2014 Distimo App Annie 109 NM ND
5/6/2014 Convertro AOL 89 11 8
9/10/2014 Beijing Yiqilian Technology Beijing Join-Cheer Software 78 NM ND
6/24/2014 AdColony Opera Software 75 1.4x 53
6/26/2014 Markco Media Monitise 45 NM ND
6/2/2014 NowSpots Marin Software 23 NM ND
5/20/2014 Suzhou Intimes Technology Company Limited Guangdong Eastone 21 16.8x 1
4/27/2014 The Pappas Group Digital Management 20 NM ND
7/10/2014 GroupCard EFactor Group 2 NM ND
9/5/2014 Cellfire Catalina Marketing Corporation ND NM ND
9/5/2014 Luminate Yahoo! ND NM ND
9/3/2014 Cyber Kiosk Solutions EPA Petroleum ND NM ND
8/26/2014 Keyade GroupM ND NM ND
8/14/2014 TBG Digital Sprinklr ND NM ND
8/3/2014 Focus on Emotions ALTABOX ND NM ND
7/21/2014 Flurry Yahoo! ND NM ND
7/2/2014 The Rimm-Kaufman Group Merkle ND NM ND
7/2/2014 Global Leads Group Holtzbrinck Digital ND NM ND
6/12/2014 Medio Systems Nokia ND NM ND
6/9/2014 Blick & Staff Communications O'Malley Hansen ND NM ND
6/4/2014 Namo Media Twitter ND NM ND
6/3/2014 The Mid Roll Midroll Media ND NM ND
5/28/2014 Capptain Microsoft ND NM ND
5/22/2014 Assetus Wealth Bay Spólka Akcyjna ND NM ND
5/19/2014 WSM Communications Group Limited Corbis Entertainment ND NM ND
5/19/2014 Mocean Mobile Pubmatic ND NM ND
5/6/2014 BrandAds Extreme Reach ND NM ND
5/6/2014 Genuine Interactive Jack Morton Worldwide ND NM ND
5/6/2014 Midnight Marketing Autologue Computer ND NM ND
5/6/2014 Purestone TFM Lewis PR ND NM ND
4/30/2014 Apprupt Opera ND NM ND
4/28/2014 Public Creative Communisis ND NM 1
4/21/2014 The Powers That Be Social Media Driven Solutions ND NM ND
4/17/2014 The Skyline Agency Webxu ND NM ND
4/17/2014 Media Interactive Omnicom Media Group ND NM ND
4/16/2014 Blabwire Media Experience Art and Design ND NM ND
4/10/2014 CustomerLink Systems Demandforce ND NM ND
4/3/2014 Sociabliz The Social Client ND NM ND
4/3/2014 Sociomantic Labs Dunnhumby ND 100 ND
4/2/2014 WinWin Media The Icicle Group ND NM ND
4/2/2014 New Control Merkle ND NM ND
4/1/2014 X-Prime JWT Paris ND NM ND
3/27/2014 Klout Lithium Technologies ND NM ND
3/24/2014 Performance Media Equistone Partners Europe ND NM ND
3/18/2014 Hare Communications Concert Care Healthcare ND NM ND
3/18/2014 AdMobius Lotame Solutions ND NM ND
3/17/2014 Selling Attitude Adhrena ND NM ND
3/12/2014 Image Group Betley Whitehorne ND NM ND
Recent M&A Transactions*
AGC’s AdTech M&A Update 2014
Page 5 of 10
Acquirer Display Search Social Video Email Mobile Data / Audience Exchanges
OOT (9/07)
24/7 Real Media (5/07)
Quickstep394 (5/07)
Spot Runner (11/06)
Midia 123 (9/14)
Keyade (8/14)
Quirk Digital Marketing (5/14)
Lemon Sky (2/14)
Biggs Gilmore (11/13)
Keyade (8/14)
Precise Media Group (6/14)
Twist Image (5/14)
Data Republic (4/14)
X-PRIME Group (4/14)
Keyade (8/14)
Panache (12/11)
Spot Runner (11/06)
CM Interactive (12/12)
Mayko Trading (12/12)
Netbooster Asia (11/12)
Cairos Usabilidade (9/14)
Double Encore (8/14)
Aerodeon (5/14)
X-PRIME Group (4/14)
Guardian Digital (7/14)
XTEL Group (4/14)
FusePump (3/14)
plista (1/14)
YourWebBrand (12/13)
Bannerconnect (2/14)
Luminate (9/14)
Interclick (11/11)
5 to 1 (5/11)
Dapper (10/10)
Bread Labs (10/13)
Bix (11/06)Maven Networks (2/08)
Flurry (7/14)
Admovate (7/13)
Cirius (8/10)
Actionality (7/07)
Flurry (7/14)
Palaran (7/13)
Interclick (11/11)
IndexTools (4/08)
BlueLithium (10/07)
Right Media (4/07)
5 to 1 (5/11)
Right Media (4/07)
Invite Media (6/10)
DoubleClick (4/07)PeakStream (5/07)
Wavii (4/13)
Wildfire Interactive (7/12)
Meebo (6/12)
Adscape Media (3/07)
mDialog (6/14)
Autofuss (12/13)AdMob (11/09)
Adometry (5/14)
Channel Intelligence (2/13)
Zave Networks (9/11)
AdMeld (6/11)
PostRank (6/11)
DoubleClick (4/07)
Buysight (12/12)
Pictela (12/10)
ADTECH (5/07)
Quigo (11/07) Gravity (1/14)
Adap.tv (8/13)
GoViral (1/11)
Pictela (12/10)
ADTECH (5/07)
Goowy (2/08)
Quigo (11/07)
ADTECH (5/07)
Third Screen Media (5/07)
PrecisionDemand (5/14)
Converto (5/14)
Gravity (1/14)
Buysight (12/12)
AdECN (7/07) aQuantive (5/07) MarketingPilot Software (10/12) Massive (5/06)Capptain (5/14)
MessageCast (5/05)
Navic Systems (6/08)
Rapt (6/08)
YaData (2/08)
AdECN (7/07)
Omnicom (7/13)
ZenithOptimedia (1/14)
Lbi International (9/12)
Rosetta (5/11)
Portfolio (7/08)
Hawkeye (3/14)
ZenithOptimedia (1/14)
Net@lk (7/13)
Omnicom (7/13)
Airlock (3/11)
TPM Communications
(9/13)
Omnicom (7/13)
Lbi International (9/12)
Hawkeye (3/14)
Omnicom (7/13)
Digital District (12/10)
Phonevalley (9/07)
Applied Media (1/14)
ZenithOptimedia (1/14)
Omnicom (7/13)
Lbi International (9/12)
Rosetta (5/11)
Unica (8/10)Xtify (10/13)
Unica (8/10)
Netezza (9/10)
Unica (8/10)
Coremetrics (6/10)
ExactTarget (6/13)
Buddy Media (6/12)
Radian6 (3/11)
ExactTarget (6/13) ExactTarget (6/13)
Compendium (10/13)
Responsys (12/13)
Responsys (12/13)
Vitrue (5/12)
Responsys (12/13)
Eloqua (12/12)Responsys (12/13) BlueKai (2/14)
Tumri (7/11)
OggiFinogi (2/11)Web TV (3/11)
Web TV (3/11)
OggiFinogi (2/11)
OggiFinogi (2/11)
Personifi (6/08)
SecondSync (3/14)
Trendrr (8/13)
BlueFin Labs (2/13)
TapCommerce (6/14)
MoPub (11/13)
Namo Media (6/14)
AdGrok (5/11) MoPub (11/13)
Hydra Group (6/10)Hydra Group (6/10)
MIVA Media (3/09)
Giant Media (3/14)
Montipay (4/13)
AdParlor (11/11)
Hydra Group (6/10)
Social Media Networks (11/09)
KTTN Media (7/09)
TriVu Media (7/14)
Giant Media (3/14)Hydra Group (6/10)
Montipay (4/13)
KITN Media (7/09)TriVu Media (7/14)
Fetchback (6/10)
Pepperjam (9/09)Pepperjam (9/09)
Where (4/11)
Pepperjam (9/09)
MBS (5/10)
e-Dialog (1/08)
Where (4/11)
M3 Mobile Marketing (4/10)
Where (4/11)
ClearSaleing (1/11)
FetchBack (6/10)
Silverlign (4/09)
Efficient Frontier (11/11)
Scene7 (5/07)
Efficient Frontier (11/11)
Omniture (9/09)
Neolane (6/13)
Efficient Frontier (11/11)Neolane (6/13)
Search Discovery (8/13)
Altitude (11/11)
Demdex (1/11)
Omniture (9/09)
Visual Sciences (10/07)
Jumptap (8/13)
Metaresolver (2/13)
Condaptive (5/11)
TapMetrics (2/10)
Metaresolver (2/13)
Condaptive (5/11)
TapMetrics (2/10)
Aggregate Knowledge (10/13)Aggregate Knowledge (10/13)
TargusInfo (10/11)
HiClip (9/08)
smartclip (10/11)
RedLever (11/08)
HiClip (9/08)
Frontline Direct (3/08)
Tempest Media (10/07)Objective Loyalty (12/10)
AdCombination (11/10)
Adviva (3/08)Broadband Ent. (10/10)
Adcombination (11/10)
Adviva (3/08)
Excludes deals done by subsidiaries prior to their acquisition by parent company
*M&A activity from 1/1/14 – 11/18/14; Source: S&P Capital IQ, 451 Research
Recent M&A Transactions*
Major Players’ M&A Activity
AGC’s AdTech M&A Update 2014
Page 6 of 10
*M&A activity from 1/1/07 – 11/18/14; Source: S&P Capital IQ, 451 Research
Date Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Revs
1. 05/17/07 aQuantive Microsoft 5,746 11.7x 493
2. 04/13/07 DoubleClick Google 3,110 NM ND
3. 06/04/13 ExactTarget salesforce.com 2,539 8.0x 317
4. 08/05/14 Classified Ventures Gannett 2,474 NM ND
5. 09/20/10 Netezza Corporation IBM 1,593 7.1x 223
6. 12/20/13 Responsys Oracle Corporation 1,590 8.2x 194
7. 09/15/09 Omniture Adobe Systems 1,559 4.6x 336
8. 04/30/07 Right Media Yahoo! 850 NM ND
9. 08/12/13 Digital Generation Extreme Reach 829 2.1x 386
10. 06/04/12 Buddy Media salesforce.com 745 26.0x 29
11. 11/09/09 AdMob Google 675 NM ND
12. 10/11/11 Targus Neustar 658 4.4x 149
13. 02/06/07 NetRatings The Nielsen Company 610 7.5x 82
14. 05/17/11 Rosetta Marketing Group Publicis Groupe 575 2.7x 215
15. 12/22/10 Aprimo, Incorporated Teradata Corporation 500 7.4x 68
16. 08/13/10 Unica Corporation IBM 447 4.1x 109
17. 06/03/10 iCrossing The Hearst Corporation 425 4.3x 100
18. 06/16/11 MediaMind Technologies Digital Generation 423 5.0x 84
19. 08/07/13 Adapt.tv AOL 405 NM ND
20. 11/30/11 Efficient Frontier Adobe Systems 375 NM ND
21. 10/25/07 Visual Sciences Adobe Systems 367 4.6x 79
22. 03/06/14 FreeWheel Media Comcast 360 NM ND
23. 06/24/14 AdColony Opera Software 350 6.6x 53
24. 09/09/13 MoPub Twitter 350 130.1x 3
25. 11/07/07 Quigo Technologies AOL 346 NM ND
26. 03/30/11 Radian6 salesforce.com 341 NM ND
27. 03/05/12 Amobee SingTel 321 NM ND
28. 05/14/14 LiveRamp Acxiom 310 NM ND
29. 05/23/12 Vitrue Oracle Corporation 300 NM ND
30. 04/28/08 Adify Corporation The Travel Channel 300 42.9x 7
31. 08/02/11 Dotomi ValueClick 278 5.6x 50
32. 07/26/07 Tacoda AOL 275 NM ND
33. 11/01/11 interclick Yahoo! 251 2.0x 128
34. 08/13/13 Jumptap Millennial Media 245 3.8x 64
35. 09/04/07 BlueLithium Yahoo! 243 NM ND
36. 08/05/14 [x+1] Rocket Fuel 236 3.3x 72
37. 06/10/14 Adconion Media SingTel 229 1.2x 185
38. 07/31/14 SpotXchange RTL Group 222 NM ND
39. 07/22/14 Bizo LinkedIn 175 NM ND
40. 02/12/08 Maven Networks Yahoo! 162 NM ND
41. 03/03/08 Compete WPP 150 10.1x 15
42. 02/28/14 IREP Co D.A.Consortium 149 0.3x 485
43. 01/23/08 e-Dialog GSI Commerce (eBay) 148 4.4x 34
44. 01/29/14 Digitalsmiths TiVo 135 NM ND
45. 04/20/11 Where eBay 135 NM ND
46. 02/06/13 Channel Intelligence Google 125 NM ND
47. 10/30/13 Aggregate Knowledge Neustar 117 NM ND
48. 12/21/09 EyeWonder Digital Generation 116 NM ND
49. 03/25/05 Digital Impact Acxiom Corporation 115 2.7x 42
50. 07/26/07 Interactive Marketing Works TradeDoubler 115 0.8x 141
Precedent M&A Transactions*
AGC’s AdTech M&A Update 2014
Page 7 of 10
*M&A activity from 1/1/07 – 11/18/14; Source: S&P Capital IQ, 451 Research
Precedent M&A Transactions* (cont’d)
Date Target Acquirer Implied EV ($M) EV / LTM Rev Target LTM Revs
51. 05/28/14 Distimo App Annie 109 NM ND
52. 06/04/12 Meebo Google 100 NM ND
53. 10/20/08 Acerno Akamai Technologies 98 NM ND
54. 06/26/14 Markco Media Monitise 94 NM ND
55. 01/31/11 GoViral AOL 92 NM ND
56. 01/23/14 Gravity AOL 91 NM ND
57. 10/20/14 Videoplaza Ooyala 80 10x 8
58. 09/10/14 Beijing Yiqilian Technology Beijing Join-Cheer Software 78 NM ND
59. 04/25/11 Greystripe ValueClick 71 NM ND
60. 04/11/11 Jingle Networks Marchex 67 3.4x 19
61. 04/11/11 Tatto Ozura World 60 NM ND
62. 12/03/13 Rhythm NewMedia Blinkx 57 4.9x 12
63. 10/05/10 Dapper Yahoo! 55 NM ND
64. 10/01/10 Mobclix Velti 54 NM ND
65. 09/04/13 Saffron Digital Cinram Group 47 NM ND
66. 11/05/12 Longboard Media Bazaarvoice 44 NM ND
67. 11/05/13 SiteScout Centro 40 NM ND
68. 03/11/13 Amaze St. Ives 37 1.4x 26
69. 08/20/04 Agency M WPP 34 4.0x 8
70. 09/30/10 Match Point Media Digital Generation 31 NM ND
71. 04/08/11 BurstMedia Blinkx 30 0.8x 38
72. 07/24/11 Adperio Matomy Media Group 30 0.6x 50
73. 04/23/13 Wavii Google 30 NM ND
74. 05/18/11 5to1 Yahoo! 26 NM ND
75. 10/29/13 Perka First Data 26 NM ND
76. 01/02/13 TapIt! Media Group Phunware 23 NM ND
77. 06/02/14 NowSpots Marin Software 23 NM ND
78. 10/28/10 Quova Neustar 22 NM ND
79. 05/20/14 Suzhou Intimes Technology Company
Limited
Guangdong Eastone 21 16.8x 1
80. 04/27/14 The Pappas Group Digital Management 20 NM ND
81. 01/15/08 Webmetrics Neustar 19 NM ND
82. 01/10/13 (m) PHASIZE Sapient 18 NM ND
83. 06/21/12 Brand.net Valassis Communications 18 NM ND
84. 03/01/10 Perfiliate Technologies Limited Digital Window Ltd. 17 0.3x 57
85. 04/23/12 Peer39 MediaMind Technologies 16 NM ND
86. 02/20/13 Metaresolver Millennial Media 15 NM ND
87. 09/13/13 Facilitate Digital Holdings Adslot 14 3.6x 4
88. 07/15/13 AD-X Criteo 12 NM ND
89. 03/12/09 MIVA Media International Adknowledge 12 NM ND
90. 11/17/14 iSocket Rubicon Project / iSocket 10 NM ND
91. 01/07/13 MediaWhiz Holdings Matomy Media Group 10 0.1x 75
92. 03/09/11 M-Factor DemandTec 10 2.1x 4
93. 02/24/10 SMBLive ReachLocal 9 NM ND
94. 11/06/14 E-Tale Holdings ChannelAdvisor 8 NM ND
95. 06/10/10 Adisn CrowdGather 8 NM ND
96. 01/12/11 TrackSimple Blue Kai 7 NM ND
97. 02/26/14 thelab Wellcom Group 6 0.5x 13
98. 02/24/14 Odigma Consultancy Infibeam Digital Entertainment
Private
5 NM ND
99. 01/15/13 Crowd Science YuMe 4 NM ND
100. 01/21/03 Insight First 24/7 Media 4 NM ND
101. 04/06/09 Silverlign Group GSI Commerce (eBay) 2 NM ND
102. 07/10/14 GroupCard EFactor Group 2 NM ND
103. 05/23/11 Condaptive Millennial Media 2 NM ND
104. 03/27/06 Advertigo TradeDoubler 1 NM ND
Disclosed M&A Median $98 4.2x $64
AGC’s AdTech M&A Update 2014
Page 8 of 10
Date Target Acquirer Date Announced Target Acquirer
1. 10/02/14 2Go Media Affinity Solutions 63. 02/05/14 Mobi Targets adQuota Denmark
2. 10/01/14 Struq Quantcast 64. 01/23/14 Handpicked Media Future PLC
3. 09/05/14 Cellfire Catalina Marketing Corporation 65. 01/21/14 Applied Media Logic Publicis Groupe
4. 09/05/14 Luminate Yahoo! 66. 01/10/14 john st. WPP
5. 09/03/14 Cyber Kiosk Solutions EPA Petroleum 67. 01/07/14 Salesquest Onesource
6. 08/26/14 Keyade GroupM 68. 01/06/14 Sense Networks YP Intellectual Property
7. 08/14/14 TBG Digital Sprinklr 69. 12/31/13 InsightsOne Apigee
8. 08/03/14 Focus on Emotions ALTABOX 70. 12/13/13 Apptera Soleo Comm.
9. 07/21/14 Flurry Yahoo! 71. 12/09/13 Crystal Semantics 24/7 Media
10. 07/02/14 LiveRail Facebook 72. 11/12/13 TRAFFIQ Talus Holdings
11. 07/02/14 The Rimm-Kaufman Group Merkle 73. 11/07/13 ETO Publicis Groupe
12. 07/02/14 Global Leads Group Holtzbrinck Digital 74. 10/01/13 AdReady CPX Interactive
13. 06/12/14 Medio Systems Nokia 75. 10/01/13 Rapleaf TowerData
14. 06/09/14 Blick & Staff Communications O'Malley Hansen 76. 09/30/13 AdStack TellApart
15. 06/04/14 Namo Media Twitter 77. 07/16/13 EveryScreen Media Dstillery
16. 06/03/14 The Mid Roll Midroll Media 78. 05/20/13 NetShelter Technology Media Ziff Davis Media
17. 05/28/14 Capptain Microsoft 79. 05/20/13 AdMovate Yahoo!
18. 05/22/14 Assetus Wealth Bay Spólka Akcyjna 80. 05/13/13 Avail Intelligence AB RichRelevance
19. 05/19/14 WSM Communications Group Limited Corbis Entertainment 81. 05/10/13 Loki Studios Yahoo!
20. 05/19/14 Mocean Mobile Pubmatic 82. 04/08/13 Montipay Inc Adknowledge
21. 05/06/14 BrandAds Extreme Reach 83. 03/07/13 Visual Revenue Outbrain
22. 05/06/14 Genuine Interactive Jack Morton Worldwide 84. 01/08/13 MakeGood Quantcast
23. 05/06/14 Midnight Marketing Autologue Computer 85. 01/08/13 Akamai, Ad Solutions Division MediaMath
24. 05/06/14 Purestone TFM Lewis PR 86. 01/07/13 Overlay Media InMobi
25. 04/30/14 Apprupt Opera 87. 12/11/12 Scribit Outbrain
26. 04/28/14 Public Creative Communisis 88. 12/04/12 TapMe MediaMath
27. 04/21/14 The Powers That Be Social Media Driven Solutions 89. 12/03/12 Buysight AOL
28. 04/17/14 The Skyline Agency Webxu 90. 10/28/12 JumpTime OpenX Technologies
29. 04/17/14 Media Interactive Omnicom Media Group 91. 10/17/12 Tyroo Media Xplorer
30. 04/16/14 Blabwire Media Experience Art and Design 92. 10/17/12 Daylife NewsCred
31. 04/10/14 CustomerLink Systems Demandforce 93. 09/14/12 Ze Frank Games Contagious Media
32. 04/03/14 Sociabliz The Social Client 94. 09/13/12 Kingfish Labs Contagious Media
33. 04/02/14 WinWin Media The Icicle Group 95. 09/07/12 VirusTotal Google
34. 04/02/14 New Control Merkle 96. 09/05/12 Media Forum Rakuten LinkShare
35. 04/01/14 X-Prime JWT Paris 97. 07/31/12 Wildfire Interactive Google
36. 03/24/14 Performance Media Equistone Partners Europe 98. 07/31/12 Metaflow Solutions InMobi
37. 03/18/14 Hare Communications Concert Care Healthcare 99. 07/13/12 MMTG Labs InMobi
38. 03/18/14 AdMobius Lotame Solutions 100. 07/02/12 Vizu Corporation Nielsen Holdings
39. 03/17/14 Selling Attitude Adhrena 101. 06/14/12 Clickable Synapse
40. 03/12/14 Image Group Betley Whitehorne 102. 05/23/12 MobSmith The Rubicon Project
41. 03/10/14 eBrains Delucchi Plus 103. 02/27/12 OpenX Lift OpenX Technologies
42. 03/10/14 The Church Designworks Group 104. 02/21/12 aiMatch SAS Institute
43. 03/10/14 Party Of 2 Azoff MSG Entertainment 105. 01/26/12 Audience Intertainment Media
44. 03/07/14 Benedict Advertising & Marketing JKR Advertising 106. 01/23/12 WebVisible The Berry Company
45. 03/05/14 Bread Labs Yahoo! 107. 01/19/12 Image Space Media Vibrant Media
46. 03/03/14 Henry Russell Bruc AMPERAGE Marketing 108. 12/21/11 ClickEquations Acquisio
47. 02/28/14 Verkossa Media Oy Fonecta Enterprise 109. 12/07/11 CoreAudience iCrossing
48. 02/27/14 MSB Local Maximize Digital Media 110. 12/06/11 Panache 24/7 Media
49. 02/24/14 Bluekai Oracle 111. 11/01/11 AdParlor Adknowledge
50. 02/21/14 Cool Pink Blue Logic Digital 112. 11/01/11 XGraph Clearspring Technologies
51. 02/21/14 SMG Lighthouse Starcom 113. 10/06/11 smartclip Adconion Media
52. 02/21/14 Burstly Apple 114. 10/04/11 Lijit Networks Federated Media
53. 02/19/14 Connexity Shopzilla 115. 09/27/11 Web Dev. Vantage Media
54. 02/18/14 MobiGirl Media SuperAwesome 116. 09/26/11 BrokersWeb Vantage Media
55. 02/17/14 Agent3 Next Fifteen Communications 117. 09/25/11 MediaBank Mediaocean
56. 02/13/14 Milanuncios Schibsted Classified Media 118. 09/22/11 CONTEXTWEB PulsePoint
57. 02/13/14 Tube One Networks Ströer Media 119. 08/16/11 AdJug IgnitionOne
58. 02/12/14 Women's Marketing BB&T Capital Partners 120. 08/03/11 CS Adxpose comScore
59. 02/11/14 Awak'It SARL GFI Informatique 121. 08/02/11 ChipIn InMobi
60. 02/11/14 This Way Up Marketing Sharp Innovations 122. 06/13/11 Admeld Google
61. 02/11/14 Simplytics Integral Ad Science 123. 06/03/11 PostRank Google
62. 02/10/14 RealTargeting DoubleVerify 124. 04/28/11 Sooth Software MediaBank
*M&A activity from 1/1/07 – 11/18/14; Source: S&P Capital IQ, 451 Research
Precedent M&A Transactions* (cont’d) – Undisclosed Values
AGC’s AdTech M&A Update 2014
Page 9 of 10
Jon Guido
Partner
Investment Banking
Co-Head, Digital Interactive and Mobile Group
Jon is a founding Partner at AGC with a focus on the Digital Media, Internet, and Business Services sectors
Over the span of his 15-year career in investment banking, Jon has completed more than 65 transactions
As Chief Operating Officer for AGC, Jon works on developing and implementing the firm’s financial, operational, and business development strategies
Jon helped found AGC in February of 2003, coordinating the infrastructure build, capital raise, and recruiting effort
Prior to AGC, Jon worked in SG Cowen’s Mergers & Acquisitions Group
Linda Gridley
Partner
Investment Banking
Co-Head, Digital Interactive and Mobile Group
Linda has over 25 years of Wall Street investment banking experience
Transactional experience focused in Digital Marketing & Media, Adtech, E-Commerce, Mobile, Social, Payments, Financial Technology, Traditional Marketing, Data and Saas & Outsourcing services
Founded Gridley & Company in August 2001 and built a premier boutique bank from the ground up
Linda is regarded as an industry leader for conceiving some of the industry’s best-regarded and best-attended conferences and events
Gee Leung
Partner
Investment Banking
Gee joined AGC Partners in 2014 as a Partner focusing on Digital Media and Internet
Prior to AGC, Gee held senior positions at MESA Global and Montgomery & Co.
Gee brings 16 years of banking experience to AGC
Gee holds a BS from the Haas School of Business at the University of California, Berkley
Digital Media, Internet & Mobility Experience
AGC’s AdTech M&A Update 2014
Page 10 of 10
Note: This document is intended to serve as information only, and to suggest that further analysis and consideration may be
warranted. Unless otherwise indicated, AGC does not believe that the information contained herein is sufficient to serve as the basis
of an investment decision. There can be no assurance that these statements, estimates or forecasts will be attained and actual
results may be materially different. Only those representations or warranties which are made in a definitive purchase agreement will
have any legal effect. To learn more about the company/companies that is/are the subject of this commentary, contact one of
persons named herein who can give you additional information.
AGC Today Culture of teamwork, creativity, passion, tenacity, community and integrity
A reputation for closing deals large and small at premium valuations
History of completing 25 to 30 transactions per year – volume brings market knowledge, experience and deep worldwide technology contacts
50 person global team with offices in Boston, Silicon Valley, New York City, Minneapolis and London
Strong technology sector expertise lead by 15 AGC Partners with average banking experience of 20 years – HCIT, security, cloud infrastructure, SaaS, digital media, consumer / enterprise application and more
451 Group ranks AGC as the leading technology boutique – 10 years in business and 40 consecutive quarters of profitability