mergers & acquisitions capital raising strategic...

1 │ Mobile Industry Update Q2 2015

Mergers & Acquisitions Capital Raising Strategic Advisory

Mobile Industry Update Q2 2015


Unconflicted AdviceDeep Technology Domain Expertise

Differentiated Negotiation Framework

Vista Point exclusively provides sell-

side M&A and Capital Raising advisory

services to technology businesses

removing the conflict of interest

associated with working both sides of

the table.

Vista Point bankers are industry

specialists that focus exclusively on

core technology markets allowing us

to provide relevant insights into our

client’s business and create the

strategic framework to optimize

valuation.

The firm utilizes a unique negotiation

framework to increase the

competitiveness of the transaction

process, and ultimately yield higher

valuations at better terms for clients.

Vista Point Advisors was founded on the principle that founder-led technology companies in the emerging and

middle markets are unique and require specialized attention and advice when considering investment and exit

opportunities. Our unique focus on sell-side processes provides our clients with unconflicted advice that assures

our interests are completely aligned with the entrepreneur. VPA is focused exclusively on working with founder-

owned and operated businesses to deliver the most favorable transactions at premium valuations.

Vista Point Advisors Overview


*Completed by VPA professionals while at another investment bank

has been acquired by

April 2014


March 2014

received investment from

March 2013


January 2013


November 2013


August 2014


December 2014


February 2015


November 2014


November 2014


January 2013

has been acquired by*

October 2010

has been acquired by*

December 2010


March 2012


March 2015

Representative Vista Point Advisors Transactions


• Q2 2015 Mobile M&A acquisitions totaled 73, with $6.0 billion in transaction value

─ Activity in Q2 2015 was highlighted by Verizon’s $4.3 billion acquisition of AOL

─ 2014 featured an unprecedented number of acquisitions, reaching a total of over 1,800

• Mobile-focused M&A transaction value in Q2 2015 was up over 480% from Q1 2015

• Major opportunities for investment and exit opportunities include:

─ Mobile commerce

─ Business services

─ Supply chain / manufacturing

─ Education

─ Wearables

─ Lifestyle, medical, news and social networking applications

Q2 2015 Mobile Industry Overview


Global Mobile Phone Internet and User PenetrationMobile Data and Internet Traffic Forecast

Time Spent in Specific Mobile App Categories Non-Cloud vs Cloud Mobile Traffic

Global Mobile Traffic and Connectivity

Sources: Cisco, BI Intelligence, Statista

67%73%

79%84%

87%90%

39%44%

49%52%

56% 58%

0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 2016 2017

Mobile Internet Users Mobile Phone Users

14%

32%

28%

8%

8%

4%3% 3%

Mobile Web

Gaming

Social Media

Entertainment

Utilities

Productivity

News

Others

81% 83% 85% 86% 88% 90%

19% 17% 15% 14% 12% 10%

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018 2019

Mobile Non-Cloud Traffice Mobile Cloud Traffic

2.5

4.2

6.8

10.7

16.1

24.3

0

5

10

15

20

25

2014 2015 2016 2017 2018 2019

Mo

bile

Dat

a an

d In

tern

et

Traf

fic

(Exa

byt

es

pe

r M

on

th)


Most Active Acquirers (Since 2010)

Source: Capital IQ as of 6/30/2015

Notable Recent Transactions

Deals <$1bn

Deals >$1bn

Acquirer Microsoft Verizon Google ComverseKeysight Technologies

Netherlands

Target Datazen Software AOL Pulse.io Acision Anite

Date 04/14/15 05/12/15 05/28/15 06/15/15 06/17/15

EV N/A $4,283m N/A $402m $512m

EV / LTM Rev N/A 1.7x N/A N/A 2.8x

EV / LTM EBITDA N/A 9.9x N/A N/A 12.8x

Active Acquirers and Notable Transactions

32

1913 11 9 8 6 6 5 4 4 4 4 4 4

2

1

1

1

0

5

10

15

20

25

30

35

40

Nu

mb

er

of

Tran

sact

ion

s

$5.1

$1.1

$17.4

$0.0 $0.0 $0.0 $0.1 $0.0 $0.0 $1.3

$0.4 $0.2 $0.2 $0.1 $0.1

$0.0

$5.0

$10.0

$15.0

$20.0

Tran

sact

ion

Val

ue

($

bn

)


Quarterly Mobile M&A Value and Deal Count (Since 2010)


Mobile M&A Market Overview

60 5648

57 61 60

8779

94 9196

72

9183

6873

97107

122

81 7873

0

20

40

60

80

100

120

140

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15

Nu

mb

er

of

Tran

sact

ion

s

$0.1

$4.0

$2.7

$0.5 $0.2

$3.2

$0.4

$1.4$0.1

$2.2

$2.9 $2.9

$5.7

$4.3

$8.0

$4.1$6.1

$7.7

$18.7

$3.4

$1.0

$6.0

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

Tran

sact

ion

Val

ue

($

bn

)


40%

30%

20%

10%

Q1 '15

62%

8%

8%

23%

Q2 '15

Transactions by Reported Value

Transactions by Target Funding

Total: $1B Total: $6B

$500M - $1B>$1B

$250M - $500M$100M - $250M$50M - $100M<$50M


Mobile M&A Market Overview

50M+

$30 - $50M

$10 - $30M

$0.1 - $10M

Undisclosed

No Funding

67%

47% 47% 51%58% 59% 58%

70%66% 63% 63%

68% 67%58%

53%47%

56%61%

43%49% 47% 44%

0%

20%

40%

60%

80%

100%

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Q1

'12

Q2

'12

Q3

'12

Q4

'12

Q1

'13

Q2

'13

Q3

'13

Q4

'13

Q1

'14

Q2

'14

Q3

'14

Q4

'14

Q1

'15

Q2

'15


Top 20 Most Active Investors Across Software & Internet Over the Last 2 Years


Despite High Valuations, Investments Lead Exits 3:1

60

41

28

15

19

20

18

19

12

16

13

12

10

6

10

10

5

7

5

9

42

45

31

30

18

16

17

16

18

12

10

10

11

15

10

10

10

6

7

3

109

80

48

41

38

53

21

24

28

32

32

22

10

13

9

18

8

12

12

21

211

166

107

86

75

89

56

59

58

60

55

44

31

34

29

38

23

25

24

33

060120180240

Investments Made

Within last 6 months Within 6-12 months Within 12-24 months

10

5

4

6

4

4

3

3

4

1

3

6

4

4

1

4

3

2

3

17

7

4

6

2

8

5

4

3

6

3

2

8

4

3

3

5

2

11

30

10

5

7

9

11

10

10

6

3

5

6

4

13

9

3

3

9

2

10

57

22

13

19

15

23

18

17

13

10

11

14

4

25

17

7

10

17

6

24

0 15 30 45 60

Portfolio Exits

Within last 6 months Within 6-12 months Within 12-24 months


Note: $ in Millions. EV/EBITDA multiples in excess of 50x or less than 0x are considered not meaningful.Source: Capital IQ as of 6/30/2015

Select Q2 2015 Announced M&A TransactionsEnterprise Target LTM Enterprise Value /

Date Target Acquirer Mobile Type Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

06/30/15 GlobeSherpa RideScout Consumer Transportation / Logistics N/A N/A N/A N/A N/A

06/30/15 CTB/McGraw-Hill Data Recognition Consumer Education N/A N/A N/A N/A N/A

06/29/15 BNOTIONS Symbility Solutions Development Development $4 N/A N/A N/A N/A

06/29/15 Speek Jive Communications Business Telecommunications N/A N/A N/A N/A N/A

06/26/15 Leo Me Lyft Consumer Content / Document Management N/A N/A N/A N/A N/A

06/25/15 PCMS Consulting Proxio Business CRM N/A N/A N/A N/A N/A

06/25/15 Market Motive Simplilearn Solutions Business Advertising and Marketing $10 N/A N/A N/A N/A

06/24/15 Librify Scribd Consumer Content / Document Management N/A N/A N/A N/A N/A

06/23/15 Page-Out EMS Find Business Telecommunications N/A N/A N/A N/A N/A

06/19/15 Glip RingCentral Business Content / Document Management N/A N/A N/A N/A N/A

06/18/15 RocketPlay AGS Consumer Gaming $6 N/A N/A N/A N/A

06/17/15 Anite Keysight Technologies Netherlands Business Testing $512 $182 $40 2.8x 12.8x

06/16/15 Flavour TDT Media Consumer Travel / Hospitality N/A N/A N/A N/A N/A

06/16/15 Intridea Mobomo Business Development N/A N/A N/A N/A N/A

06/15/15 Acision Comverse Consumer Telecommunications $402 N/A N/A N/A N/A

06/15/15 PriceGrabber.com Connexity Consumer Ecommerce N/A N/A N/A N/A N/A

06/11/15 North Technologies BOTH Media Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

06/10/15 NUMBERCOP WhitePages.com Consumer Telecommunications N/A N/A N/A N/A N/A

06/10/15 Mail Bypass SendGrid Consumer Telecommunications N/A N/A N/A N/A N/A

06/10/15 Ziftr GoCoin Consumer Fintech N/A N/A N/A N/A N/A

06/10/15 BlueStripe Software Microsoft Business IT Infrastructure & Management N/A N/A N/A N/A N/A

06/10/15 Clipp Mobile Embrace Consumer Fintech $3 N/A N/A N/A N/A

06/09/15 Finale Mobile bloglovin' Consumer Ecommerce N/A N/A N/A N/A N/A

06/09/15 Heavy Bits Brit Media Development IT Infrastructure & Management N/A N/A N/A N/A N/A

06/09/15 Uniiverse Collaborative Lifestyle Ticketmaster Entertainment Business Ecommerce N/A N/A N/A N/A N/A

06/08/15 Verivo Software Appery Development Development N/A N/A N/A N/A N/A

06/04/15 Cenique USA T1Visions Business Advertising and Marketing N/A N/A N/A N/A N/A

06/03/15 Locar Minicabster Consumer Transportation / Logistics N/A N/A N/A N/A N/A

06/01/15 Autoniq KAR Auction Services Consumer Content and Services N/A N/A N/A N/A N/A

05/28/15 Esna Technologies Avaya Business Content / Document Management N/A N/A N/A N/A N/A

05/28/15 Pulse.io Google Business Testing N/A N/A N/A N/A N/A

05/26/15 Cadec Global PeopleNet Communications Business Mapping / Tracking N/A N/A N/A N/A N/A

05/20/15 Weathermob Weathernews Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

05/20/15 Dimmi La Fourchette Consumer Travel / Hospitality N/A N/A N/A N/A N/A

05/18/15 PublicStuff Accela Business Content and Services N/A N/A N/A N/A N/A

05/14/15 Shift Labs Brand Networks Business Advertising and Marketing $50 N/A N/A N/A N/A

05/13/15 Pocket Gems Tencent Holdings Consumer Gaming N/A N/A N/A N/A N/A

05/12/15 AOL Verizon Communications Consumer Diversified Media $4,283 $2,569 $433 1.7x 9.9x

05/11/15 Wunwun Alfred Club Consumer Ecommerce N/A N/A N/A N/A N/A

05/08/15 Desktop Mapping Systems TechnologyOne Business Mapping / Tracking $9 N/A N/A N/A N/A

05/07/15 Mercury Network Serent Capital Business Fintech N/A N/A N/A N/A N/A

05/06/15 Mobidia Technology App Annie Business Business Intelligence N/A N/A N/A N/A N/A

05/06/15 Medium Entertainment RockYou Business Advertising and Marketing N/A N/A N/A N/A N/A

05/05/15 Fantasy65 Bio-Cell Consumer Gaming N/A N/A N/A N/A N/A

05/04/15 Timeful Google Consumer Transportation / Logistics N/A N/A N/A N/A N/A


Note: $ in Millions. EV/EBITDA multiples in excess of 50x or less than 0x are considered not meaningful.Source: Capital IQ as of 6/30/2015

Select Q2 2015 Announced M&A Transactions (cont.)Enterprise Target LTM Enterprise Value /

Date Target Acquirer Mobile Type Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

05/03/15 Weve Telefónica UK Business Advertising and Marketing N/A N/A N/A N/A N/A

04/30/15 Livelynk Group Fortunis Resources Business Advertising and Marketing $2 N/A N/A N/A N/A

04/29/15 oMbiel Ex Libris Business Development N/A N/A N/A N/A N/A

04/28/15 Uplink.to NanoTech Entertainment Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

04/28/15 Reveal Chat Rhapsody International Consumer Content and Services N/A N/A N/A N/A N/A

04/27/15 Loqate GB Group Business Mapping / Tracking $20 N/A N/A N/A N/A

04/24/15 Reality Boost ShopLive Consumer Mapping / Tracking N/A N/A N/A N/A N/A

04/23/15 Lifecake Canon Europe Consumer Content / Document Management N/A N/A N/A N/A N/A

04/23/15 Happy Studio Staples Business Advertising and Marketing N/A N/A N/A N/A N/A

04/22/15 DMEautomotive Solera Holdings Business Advertising and Marketing $143 N/A N/A N/A N/A

04/22/15 NexTable Zomato Media Business Travel / Hospitality N/A N/A N/A N/A N/A

04/22/15 DriveFactor CCC Information Services Business Transportation / Logistics $22 N/A N/A N/A N/A

04/22/15 Ads Reality GAME Digital Consumer Content and Services N/A N/A N/A N/A N/A

04/21/15 ParkPlease SpotHero Consumer Transportation / Logistics N/A N/A N/A N/A N/A

04/21/15 WatchDox BlackBerry Business Security / Storage N/A N/A N/A N/A N/A

04/16/15 Streetline Kapsch TrafficCom Consumer Transportation / Logistics N/A N/A N/A N/A N/A

04/16/15 ByteLight Acuity Brands Business Mapping / Tracking N/A N/A N/A N/A N/A

04/15/15 Medialets WPP Business Advertising and Marketing N/A N/A N/A N/A N/A

04/14/15 Datazen Software Microsoft Business Business Intelligence N/A N/A N/A N/A N/A

04/14/15 Splitforce Char Software Consumer Testing N/A N/A N/A N/A N/A

04/13/15 Shout For Good Australia & New Zealand Banking Group Consumer Fintech N/A N/A N/A N/A N/A

04/10/15 Sunstorm Games TabTale Consumer Gaming N/A N/A N/A N/A N/A

04/07/15 BigTeams Moko Social Media Business Content and Services N/A N/A N/A N/A N/A

04/07/15 Zippler Investissements TSPL Consumer Mapping / Tracking N/A N/A N/A N/A N/A

04/06/15 RootMetrics HIS Business Advertising and Marketing N/A N/A N/A N/A N/A

04/02/15 Refresh LinkedIn Consumer Knowledge / Content (Social) N/A N/A N/A N/A N/A

04/01/15 Toopher salesforce.com Business Security / Storage N/A N/A N/A N/A N/A

04/01/15 OnLive Sony Computer Entertainment Consumer Gaming N/A N/A N/A N/A N/A

Mobile Median $20 $1,376 $236 2.2x 11.4x

Mobile Mean $420 $1,376 $236 2.2x 11.4x


• Software-as-a-Service

• On-premise

• Application Software

• Healthcare IT

• Financial Tech

Software Internet Mobile

Vista Point Advisors is a boutique investment bank focused on capital raises and M&A advisory for growing technology companies

90 New Montgomery, Suite 700

San Francisco, CA 94105

• Advertising and Marketing

• Digital Media

• Gaming

• Content

• Platforms

• Consumer Applications

• Enterprise Applications

• Gaming

• Payments

• Infrastructure

Hardware

• Communications

• Entertainment

• Industrial

• Systems

• Consumer

Mike Lyon

415.659.9187

[email protected]

Jeff Bean

415.659.9190

[email protected]

Thomas Lin

415.692.6163

[email protected]

Russell Perkins

415.501.9029

[email protected]

Miles Lacey

415.659.9278

[email protected]

Jeffrey Koons

415.659.9189

[email protected]

David Cho

415.547.8440

[email protected]

Scott Austin

415.547.8437

[email protected]

Drew Pascarella

917.670.1097

[email protected]

Mike Greco

415.659.9191

[email protected]

Vista Point Advisors Overview

Tyler Jamison

415.547.8438

[email protected]

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