PressLaunchDate:

NewYork,NYMarch31,2016

Contact:AdamGross,ChiefMarketingOfficer
+12127540710|adamg@jegi.com|www.jegi.com

JEGI Q1 2016 M&A OVERVIEW

M&A Remains Active through First Quarter of the Year

Amidsignsofabroaderslowdown
intheglobalM&Amarketthisyear,
themedia,information,marketing,
softwareandtechenabledservices
sectorscontinuedtoseerobust
mergerandacquisitionactivityin
thefirstquarterof2016,with601
transactionsannouncedatatotal
valueof$37.4billion.

Bothdealactivityandvalueacross
thesesectorssurpassedQ12015,
whichsaw545transactionswitha
totalvalueof$26.4billion,
accordingtoJEGI,theleading
independentinvestmentbank
servingthesecoremarkets.

Software&TechEnabledServices
Software&TechEnabledServicesledbyfarintermsofdealvolumeandvalue,with349transactionsvalued
at$19.1billionforthequarter.Thechartbelowshowsabreakdownofdealvolumebysubsectorforthis
activesector.

Applicationsoftwarewasthemostactivesubsector,accountingfornearlyonethirdofdealvolume.The
mostsignificantapplicationsoftwaretransactioninQ12016wasIBMWatsonHealthsannouncedacquisition
ofTruvenHealthAnalytics,aproviderofhealthcareanalyticsSaaSandservices,fromVeritasCapitalfor$3.6
billion.Otherinterestingapplicationsoftwaretransactionsinthequarterincluded:H.I.G.Capitals
acquisitionofIntuitsQuickenbusiness,whichprovidesfinancialmanagementsoftware;SterlingInfoSystems
acquisitionofTalentWise,aproviderofemployeebackgroundscreeningsoftware;andApplesacquisitionof
Emotient,aprovideroffacialrecognitionsoftwareandanalytics.

Thechartbelowshowsafurtherbreakdownofthesegmentswithintheapplicationsoftwaresubsector.
Verticalapplicationssawthemostdealvolume(29%),followedbycustomerrelationshipmanagement(22%),
enterpriseresourceplanning(20%)andbusinessintelligence(15%).

Followingapplicationsoftware,ITservicesanddistributionwasthesecondmostactivesubsectorin
Software&TechEnabledServices(20%),followedbyIToutsourcing(13%),whichsawtheTSYS$2.4billion
announcedacquisitionofTransFirst,aprovideroftransactionprocessingservices,fromVistaEquityPartners.

MarketingServices&Technology
MarketingServices&Technologywasthesecondmostactivesectorinbothdealvolumeandvalue,with187
transactionsthatgenerated$8.1billionofdealvalueinQ12016.Morethanhalfofthedealvaluewas
capturedinthedata&analyticssubsector,which
MARKETING SERVICES & TECHNOLOGY - M&A BY SUB-SECTOR
saw$4.3billionofvalueacross30deals,most
2016
notablyIBMs$3.6billionacquisitionofTruven,
January
- March
whichisalsohighlightedintheSoftware&Tech
No.
of
Value
% Total
EnabledServicessectorabove.
Industry Sub-Sector
Deals (millions)
Value

Digitalagencytransactionsalsoaccountedfor
Ad Agency
25
$361
4.5%
significantdealvolumeandvalue,with28
Ad Network / Ad Tech
6
$509
6.3%
transactionstotaling$950million,ledby
Data & Analytics
30
$4,259
52.7%
Web.comsacquisitionofYodle,aproviderof
Digital Agency
28
$950
11.8%
onlinemarketingservicestolocalbusinesses,for
E-Commerce
4
$47
0.6%
$342million,andIBMsacquisitionofthree
Experiential Marketing
5
$31
0.4%
leadingdigitalagencies:Resource/Ammirati(aJEGI
Healthcare Marketing
3
$45
0.6%
transaction);ecx.io;andAperto.
Market Research/Consulting
13
$119
1.5%

Marketing Technology
32
$766
9.5%
Alsoofnote,marketingtechnologyaccountedfor
Mobile Marketing
5
$43
0.5%
nearly10%ofdealvalue,ledbyOracles$175
Out-of-Home
Marketing
9
$615
7.6%
millionacquisitionofwebsharingplatform
PR Agency
10
$81
1.0%
AddThisandTimeInc.sacquisitionofViant
Social
Media
Marketing
10
$35
0.4%
Technology,acloudbasedplatformthatenables
Video Marketing
3
$145
1.8%
marketerstoplan,executeandmeasuretheir
digitalmediainvestments.
Other
4
$73
0.9%

Total
187
$8,080
100.0%

Source: JEGI Transaction Database

LookingAhead
Inresponsetoasurveybyvirtualdataroomprovider,Intralinks,whichaskedwhatwillimpactM&Athemost
in2016,300NorthAmericandealmakerssaidtheirtopfourconcerns,indescendingorder,were:(i)fears
aroundChina;(ii)generalgeopoliticalinstability;(iii)oilprices;and(iv)theUSPresidentialelection.Inearly
February,Intralinks,asponsorofJEGIs2016Media&TechnologyConference,predictedgrowthintheM&A
marketin2016,ascorporatescontinuetohavestrongbalancesheetsandaccesstocapital,whileprivate
equityfirmsneedtodeployrecordlevelsofdrypowder.

Meanwhile,accordingtoeMarketer,totalUSmediaadspendingisontheriseandisexpectedtoreach$192
billionin2016,withastrongpushindigital,whichisexpectedtoclimb15%in2016to$69billion.By2020,
digitaladspendingisforecastedtohit$105billionandaccountfor45%oftotalmediaexpenditures.With
theupcomingRioXXXISummerOlympicsandthelastseveralTVheavymonthsoftheUSPresidentialrace,
weanticipatestrongadspendingtocontinuein2016and,inturn,increaseddemandforassociated
production,optimizationanddeliveryservices.

HereatJEGI,wehadastrongstartto2016withfourdealclosingsinQ1,includingthesaleof
Resource/Ammirati,aleading,USbased,techenableddigitalmarketingandcreativeagency,toIBM
InteractiveExperience(IBMiX),markingIBMsfirstacquisitionofadigitalmarketingandcreativeagency.
JEGIalsorepresentedtwoleadingb2bmediacompaniesStagnitoBusinessInformation(aTopspinPartners
portfoliocompany)andEdgellCommunicationsinaprepackagedmergerandsaletoRFEInvestment
Partners.And,JEGIrepresentedInstantly,aleadingproviderofonlineandmobileaudienceandinsights
technologytools,toSSI,aportfoliocompanyofHGGC.

M&AHighlightsforQ12016
Theb2bmediaandtechnologysectorsaw25transactionsinthefirstquarterof2016,comparedto28inQ1
2015.Dealvaluedeclinedsignificantlyto$262million,asQ12015sawMacMillanScienceandEducations
megaacquisitionofacademicpublisherSpringerScience+BusinessMediafromBCPartners.Notable
transactionsinQ12016included:RFEInvestmentPartnersacquisitionofStagnitoBusinessInformationand
EdgellCommunications,asnotedabove;LinkedInsacquisitionofConnectifier,anonlineplatformfor
discovering,qualifying,andconnectingwithjobcandidates,for$100million;andZealotNetworks
acquisitionofAdRev,amultichanneltalentnetworkthatbringstogetherYouTubecreatorsfromaroundthe
globetosharetheirknowledge,forapproximately$20million.

TheconsumermediaandtechnologysectordroppedindealvalueinQ12016,with$939millionvs.Q1
2015s$3.2billion,whiledealvolumeincreased23%to54transactions,vs.44in2015.NoQ1dealthisyear
matchedExpediasacquisitionofthreeonlinetravelsitesOrbitz,TravelocityandDecolarfornearly$2
billionin2015.Notabletransactionsinthefirstquarterof2016includedthe:HudsonsBayCompany
acquisitionofluxuryonlineretailerGiltGroupefor$250million;Univisionsacquisitionofa40%stakein
humornewssiteTheOnion,valuedatnearly$200million;andDSWacquisitionofEbuys,onlineshoeretailer,
for$118million.

Thedatabaseandinformationservicessectorremainedrelativelyflatinnumberoftransactionsannounced
inQ12016,with10comparedto11dealsinQ12015.However,transactionvaluerosedramaticallyin2016
to$11.4billion,duetotheannouncedmergerofglobalinformationcompanyIHSandfinancialinformation
servicesproviderMarkit,whichhasanestimateddealvalueof$10.3billion.OthernotableQ1dealsincluded
IHSs$650millionacquisitionofOilPriceInformationServicesfromUnitedCommunicationsGroupand


ThomaBravosacquisitionofInfogix,providerofdataintegrityandanalyticssolutions,fromH.I.G.Capital
Partnersforareported$322million.

Theexhibitionsandconferencessectorsawadeclineinbothdealvolumeandvalueinthefirstquarterof
2016,with19transactionstotaling$206millionin2016vs.24dealsand$831millioninvalueinthesame
periodof2015.Q12015sawseverallargetransactions,includingtheProvidenceEquityPartnersacquisition
ofClarionEventsandthepurchasebyInflexionPrivateEquityPartnersandNVMPrivateEquityofCloserStill.
NotabledealsinQ12016includedSentinelCapitalPartnersacquisitionofconsumershowproducer
MarketplaceEventsfromFivePointsCapitalandStephensCapitalPartners;InformasacquisitionofWater&
WastewaterEquipment,Treatment&TransportShowfromColePublishing;andVendomeGroups
acquisitionofHealthcareandCapitalMarketsConferencefromLincolnHealthcare.

JEGI M&A ACTIVITY BY SECTOR

Sector

2015
January - March
No. of
Value

2016
January - March
No. of
Value

% Change
No. of
Value
Deals
(11%)
(82%)

Deals
28

(millions)
$1,494

Deals
25

(millions)
$262

Consumer Media & Technology

44

$3,223

54

$939

23%

(71%)

Database & Information Services

11

$3,205

10

$11,401

(9%)

256%

Exhibitions & Conferences

24

$831

19

$206

(21%)

(75%)

128

$3,499

187

$8,080

46%

131%

54

$2,011

40

$1,095

(26%)

(46%)

346

$12,973

349

$19,100

1%

47%

B2B Media & Technology

Marketing Services & Technology

Mobile Media & Technology
Software & Tech-Enabled Services
Sources: JEGI Transaction Database and 451 Group

Themarketingservicesandtechnologysectorcontinuestobeveryactive,with187transactionstotaling
$8.1billioninvalueforthefirstquarterof2016,comparedtoQ12015s$3.5billionfor128deals.Several
notabletransactionsarementionedaboveintheMarketingServices&Technologysegment.Othernotable
Q12016dealsincluded:TelenorsacquisitionofTapad,aproviderofcrossdeviceretargetingsolutions,for
$360million;SykesEnterprisesacquisitionofClearLinkTechnologies,aproviderofmarketingcampaign
executionandoptimization,fromPamlicoCapitalfor$207million;IBMsacquisitionofUstream,aprovider
ofliveandondemandvideosolutions,forareported$130million;andSSIsacquisitionofInstantly(aJEGI
transaction).

M&Aactivityforthemobilemediaandtechnologysectordeclinedinbothdealvolumeandvalueinthefirst
quarterof2016,to40transactionsand$1.1billioninvalue.NotableQ12016dealsincludedthe:Microsoft
acquisitionofmobileapplicationdeveloperXamarinforapproximately$400million;Snapchatacquisitionof
Bitstrips,amobileappallowinguserstocreateavatarsandpersonalizedcomics,for$100million;ASICS
acquisitionofFitnesskeeper,amobileappfortrackingpersonalfitness,for$85million;andZyngaacquisition
ofZindagiGames,acreatorofmobileandPlayStationgames,for$75million.


Thesoftwareandtechenabledservicessectorremainedflatindealvolumewith349transactionsinQ1
2016vs.346inQ12015.Dealvalue,however,increasedbynearly50%to$19.1billion,ledbyafewmega
transactions,includingthoselistedintheSoftware&TechEnabledServicessegmentabove,aswellas
severalothersintheITservicessubsector.Othernotable2016transactionsincluded:ResMedsacquisition
ofBrightree,aproviderofmedicalbillingSaaS,for$800million;InsightVenturePartnersacquisitionof
DiligentCorporation,aproviderofconfidentialdocumentcollaborationsoftware,forapproximately$624
million;andFinTechAcquisitionCorp.sacquisitionofCardConnect,aproviderofpaymentprocessing
softwareandservices,fromFTVCapitalforareported$350million.

ABOUTJEGI
JEGIhasbeentheleadingindependentinvestmentbankfortheglobalmedia,information,marketing,
softwareandtechenabledservicessectorsformorethan28years.HeadquarteredinNewYork,withoffices
inBostonandLondon(viaitspartnershipwithClarity),JEGIhascompletedmorethan600highprofileM&A
transactions,servingglobalcorporations;middlemarketandemergingcompanies;entrepreneurialowners
andfounders;andprivateequityandventurecapitalfirms.Formoreinformation,visitwww.jegi.com.