JEGIPressRelease

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
JEGIQ32014M&AOverview
M&AMarketSeesIncreaseinMegaDeals
New York, NY October 2, 2014 The media, information, marketing and technology sectors saw 1,128
transactionsworth$94billionannouncedinthefirstthreequartersof2014.Dealvolumeincreasedslightly
over 2013, but Facebooks $19 billion
acquisition of mobile messaging app
WhatsApp in Q1 and several other mega
transactions drove deal value to more than
double 2013s $45 billion, according to The
Jordan, Edmiston Group, Inc. (JEGI)
(www.jegi.com), the leading independent
investment bank specializing in M&A
advisoryservicesacrossthesecoremarkets.
Although a majority of transactions have
price tags under $50 million, we are seeing a
sharp uptick of larger deals in the M&A
market. The first three quarters of 2014 saw
35 transactions over $500 million in value, compared to only 17 large deals through Q3 2013. There was
also a strong increase in the number of deals between $50 million and $500 million in value, with 155 of
suchmiddlemarketdealssofarin2014vs.110inthesameperiodlastyear.
LargeDealsThroughQ32014
The first three quarters of 2014 saw 15 mega
dealshittingthe$1billion+mark,includingthe:
Facebook acquisition of WhatsApp for
$19billioninFebruary;
CarlyleGroupacquisitionofAcostaSales
& Marketing, provider of outsourced sales and retail merchandising services to CPG brands and
retailers,fromThomasH.LeePartnersfor$4.7billioninJuly;
CVCCapitalPartnersandLeonardGreen&PartnersacquisitionofAdvantageSales&Marketing,
anotherCPGsalesandmarketingagency,fromApaxPartnersfor$4billioninJune;
Cognizant Technology Solutions acquisition of TriZetto, provider of information technology and
servicesolutionsforhealthplans,hospitalsandhealthcaresystems,for$2.7billioninSeptember;
PricelineacquisitionofrestaurantreservationsolutionsproviderOpenTablefor$2.6billioninJune;
JEGIPressRelease 2

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
GannettacquisitionofamajoritystakeinClassifiedVentures,operatorofCars.com,anautomotive
classifiedsbusiness,inadealvaluedatapproximately$2.5billioninAugust;
Alliance Data Systems acquisition of digital marketing and technology group Conversant for $2.4
billioninSeptember;
Charterhouse Capital Partners acquisition of SkillSoft, a provider of ondemand training and e
learningsolutions,forareported$2.3billioninMarch;
BerkshirePartnersacquisitionofamajoritystakeinCatalinaMarketing,aproviderofdatadriven
marketing solutions to CPG brands and retailers, in a deal valued at approximately $2.5 billion in
March;
CoxEnterprisesacquisitionofa25%stakeinAutoTraderGroup,adigitalautomotivemarketplace
forcarshoppersandsellers,for$1.8billioninJanuary;
Cerner Corporation acquisition of healthcare information technology solutions provider Siemens
HealthServicesfor$1.3billioninAugust;
KKR acquisition of Internet Brands, operator of media and ecommerce sites related to consumer
purchases,fromHellman&Friedmanfor$1.1billioninJune;
Hellman & Friedman acquisition of a majority stake in Renaissance Learning, a provider of
computerbased assessment technology and school improvement programs, for $1.1 billion in
March;
Rakuten acquisition of Ebates Performance Marketing, provider of online shopping rebates, for $1
billioninSeptember;and
Relativity Media acquisition of Fullscreen, a digital media company that builds nextgeneration
channelsandnetworksonYouTube,fornearly$1billioninMay,accordingtoseveralsources.
DebtMarketsHelpDriveLargeM&ATransactions
AccordingtoGECapital,volumeinthedebtmarketsJanuarythroughAugust2014surpassedallof2013,
with 157 collateralized debt obligations totaling $85 billion. For companies with over $10 million in
EBITDA, total leverage is up to 6x EBITDA on middlemarket deals, with 4.5x of senior debt and 1.5x of
mezzaninedebt.Leveragecanreachevenhigheronlargetransactionsforbusinesseswithstronggrowth,
highqualityassetsandbusinessmodels,suchasthosewithrecurringrevenuedrivenbydataorsoftware.
TheavailabilityofdebthelpsdriveM&Aactivity,especiallyinlargertransactions,aswehaveseensofar
thisyear.Iftheeconomycontinuestogrow,investordemandforyieldisexpectedtoremainrobust,with
vibrantdebtmarketscontinuingintoearly2015.ThisisgoodnewsfortheM&Amarket.

JEGIPressRelease 3

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
LookingForward
Barring a major destabilizing event, we expect the US economy to remain steady. The Fed has pumped
unprecedented amounts of liquidity into the US economy, and the US stock market has soared with this
infusionofcapital,andinturnthestockmarketisanexcellentleadingindicator.
We are also pleased tosee that Asian buyers are finally starting to acquire soft assets in the US. Asian
buyershavepurchasedrealestateintheUSfordecadesandEuropeancompanieshavelongbeenacquirers
of content and intellectual property in the US, but now we see Asian companies stepping up to acquire
companiesinthemediaandmarketingservicesspace.Overthepastfewmonths,wehaveseentheHong
Kongbased Integrated Whale Media Investments acquire Forbes Media, Chinese marketing agency
BlueFocusbuyindustrialdesignstudiofuseproject,andJapaneseecommerceconglomerateRakutenpick
upEbatesPerformanceMarketing.Weexpectthistrendtocontinue.
With a stable economy, strong debt markets and healthy competition in the market, we expect M&A
activitytoremainstrongforbothstrategicandprivateequitybuyers.
M&AHighlightsThroughQ32014
Deal volume in the b2b online media and technology totaled 55 transactions during the first three
quarters of 2014, a 4% increase over the same period in 2013. Deal value increased sharply, to $2.0
billion, driven by Walt Disneys acquisition of Maker Studios for up to $950 million in Q1 2014.
Notable transactions in the third quarter of 2014 included the: Stratasys acquisition of GrabCAD, a
community for engineers to share talent, expand knowledge, find projects, and work with tools and
features, for a reported $100 million; Mergermarket acquisition of Law Report Group, publisher of
The Hedge Fund Law Report and The FCPA Report, two online B2B publications, for an
undisclosedsum;andYourMembership.com(aportfoliocompanyofRiversideCompany)acquisition
ofJobTarget,providerofjobboardssoftwareandsolutionsforprofessionalandtradeassociations,for
anundisclosedamount.
Although b2c online media and technology was the third most active sector in deal volume through
September,with135transactions,volumedeclined20%vs.2013s169deals.Dealvalue,however,rose
substantially, to a total value of $14.4 billion, due to Cox Enterprises $1.8 billion acquisition of a 25%
stake in AutoTrader Group in January; Pricelines $2.6 billion acquisition of OpenTable in June; and
GannettsacquisitionofamajoritystakeinClassifiedVentures,valuedat$2.5billion,inAugust.Other
notable deals in Q3 2014 included: Amazons $970 million acquisition of Twitch Interactive, a video
platformandcommunityforgamers;NewsCorps$950millionacquisitionofMove,anonlinenetwork
ofwebsitesforrealestatesearchthatbringsconsumersandrealtorstogethertofacilitatethesaleand
rental of real estate in the US; and Apax Partners acquisition of a majority stake in Answers
Corporation,anonlinecommunitywithanswerbasedsearchservices,valuedat$900million.
JEGIPressRelease 4

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
Whiledealvolumeinthebusinesstobusinessmediasectorremainedflat,dealvalueincreasedmore
than 4x in the first three quarters of 2014 vs. the same period in 2013, up to $2.1 billion, with Apax
Partnersacquisitionofa50%stakeinTraderMediaforapproximately$979millioninJanuary,andthe
$417millionWasserstein&Co.acquisitionofALMMediainJune.NotabledealsinQ32014included
the:ShamrockCapitalacquisitionofQuestexMediaGroup,aleadingglobalbusinessinformationand
events company, for approximately $120 million; Informa acquisition of VIRGO Publishing, a B2B
information services company specializing in print and electronic media, trade shows, special events,
education and training, and business services, for an estimated $100 million; and Penske Media
acquisitionofFairchildFashionMedia,provideroffashionnewsandanalysisinprintandonline,fora
reported$100million.

The consumer magazines sector slowed in the first three quarters of this year with 24 transactions,
compared to 36 in the same period of 2013, and deal value down 74%, to $447 million, due to Funke
Mediengruppes $1.2 billion acquisition of regional newspapers, TV program guides and womens
magazinesfromAxelSpringerin2013.NotableQ32014dealsincludedAxelSpringersacquisitionof
Car&BoatMedia,publisherofprintandonlineadsforresaleofusedmotorbikes,trailersandboats,for
$98 million, and Integrated Whale Media Investments acquisition of Forbes Media, which is focused
on strategy, marketing, technology, talent management, financial benchmarking, and risk and
regulationissues.
JEGIPressRelease 5

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
Deal volume in the database and information services sector rose 13% in the first three quarters of
2014, with 53 transactions, compared to the same period in 2013, anddeal value dropped 13% to $3.9
billion. Notable deals in the thirdquarter of 2014 included the: Intercontinental Exchange acquisition
of SuperDerivatives, provider of cloudbased derivatives data, technology and valuation services for
the financial and commodity markets, for $350 million; Symphony Technology Group acquisition of
McGrawHill Construction Information Group, provider of essential data, news, insights and
intelligence to construction professionals, for $320 million; Vista Equity Partners acquisition of
AGDATA,providerofstrategicdataandanalyticalsolutionstoagriculturalcropprotectionandanimal
healthmanufacturers,foranundisclosedamount;andLeedsEquityPartnerscontrolequityinvestment
in Covenant Review, a leading independent provider of proprietary financial research and analytics,
foranundisclosedprice(aJEGItransaction).
M&A activity in the education information, technology and training sector declined in both deal
volume and deal value in the first three quarters of 2014 vs. the same period in 2013, with 59
transactionsat$5.1billion.NotabledealsinQ32014includedthe:Tutor.comacquisitionofPrinceton
Review,providerofinperson,onlineandprinteducationproducts&servicesforthehighschooland
postsecondarymarkets,foranundisclosedsum;BlackboardacquisitionofPerceptis,providerofhelp
desksupport,strategicenrollmentmanagement,customersupportandbusinessintelligenceservicesto
higher educational institutions and corporations, for an undisclosed amount; Social Studies School
Services acquisition of the school assets of Nystrom, publisher of educational maps, globes, atlases,
handson programs and technology for students and teachers from grades K12, from Herff Jones (a
JEGI transaction); and Replogle Globes Partners acquisition of the Replogle Globes division of Herff
Jones,theleadingbrandofgeographicalglobesandmapssoldtoretailersthroughouttheworld(alsoa
JEGItransaction).
The exhibitions and conferences slowed in the first three quarters of this year with 35 transactions,
compared to 45 in the same period of 2013. Deal value dropped significantly, down to $434 million,
due to the $950 million Onex acquisition of Nielsen Expositions in 2013 (JEGI advised Onex in this
deal). Notable transactions for Q3 2014 included the: Euromoney Institutional Investor acquisition of
TheInvestinginAfricanMiningIndabafromSummitProfessionalNetworksforaconfidentialprice(a
JEGI transaction); Global Experience Specialists acquisition of Blitz Communications, events services
provider in the rental of audiovisual equipment in the UK, for $25 million; and United Service
CompaniesacquisitionofSecurityManagementGroupAmerica,providerofsecurityservicesfortrade
showsandpubliceventsintheUS,foranundisclosedsum.
The healthcare information and technology sector, the second most active sector in terms of deal
volume,increasedby15%innumberoftransactionsinthefirstthreequartersof2014comparedtothe
same period in 2013, up to 181 deals. Deal value in the sector rose 79%, to $13.3 billion, due to
Cognizant Technology Solutions $2.7 billion acquisition of TriZetto in September and Cerner
Corporations $1.3 billion acquisition of Siemens Health Services in August. Other notable deals this
quarter included the: Conifer Health Solutions acquisition of Springfield Service Corporation, a
revenue cycle management and clinical documentation improvement company, for $235 million;
JEGIPressRelease 6

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
MedAssetsacquisitionofSg2,providerofmarketdataandinformationtothehealthcareindustry,for
$142 million; and Premier Healthcare Solutions acquisition of TheraDoc, developer of electronic
surveillancesystemsforinjurydetectionandprevention,for$117million.
The marketing services and technology sector continues to drive heavy M&A activity, with 450
transactionsand$29.8billionofvaluethroughQ32014,a30%and137%increaseoverrespective2013
levels. The three largest deals of this quarter, also mentioned above, were the Carlyle Group
acquisition of Acosta Sales & Marketing for $4.75 billion; the Alliance Data Systems acquisition of
Conversantfor$2.4billion;andtheRakutenacquisitionofEbatesPerformanceMarketingfor$1billion.
OthernotabledealsinQ32014,whichreflectthewiderangeoftransactionsanddiversebuyerpoolfor
thissector,includedthe:
CBS Outdoor acquisition of Van Wagner Communications, provider of out of home branding and
advertisingsolutions,for$690million;
Facebook acquisition of LiveRail, a monetization platform that provides online video advertising
solutions,foranestimated$450million;
Salesforce.comacquisitionofRelateIQ,anonlinerelationshipmanagementplatformthattracksand
analyzesinteractions,for$390million;
BlackhawkNetworkacquisitionofParago,providerofloyaltysolutions,suchasconsumerrebates
and promotions, employee rewards and recognition, sales and channel management, and prepaid
cards,for$291million;
Telstra acquisition of a 75% stake in Ooyala, provider of online video management, publishing,
analyticsandmonetizationsolutions,for$270million;
Rocket Fuel acquisition of [x+1], a programmatic marketing hub that enables brands to engage in
conversationswithconsumersacrossarangeofpaidandownedonlinemedia,for$236million;
KKR acquisition of a 49% stake in Scout24 Schweiz, a network of online marketplaces, and
Omnimedia,providerofonlinemarketingservices,fromRingierDigitalfor$175million;
LinkedIn acquisition of Bizo, a business audience marketing platform that targets professionals
internationally,for$175million;
Lake Capital acquisition of Engine Group, provider of advertising and branding services, for
approximately$169million;
RTL Group acquisition of SpotXchange, provider of performance based video advertising
campaignsandtargetingtools,for$144million;
Publicis acquisition of Nurun, a global design and technology consultancy, from Quebecor Media
forapproximately$114million;and
Catalina Marketing acquisition of Cellfire, provider of loadtocard digital coupons in the CPG
market,forareported$100million.
JEGIPressRelease 7

AdamGross,ChiefMarketingOfficer
2127540710;adamg@jegi.com
www.jegi.com
The number of deals for the mobile media and technology sector declined by 3% in the first three
quarters of 2014, as compared to the same period in 2013, down to 107 transactions. Deal value,
however,climbedexponentiallyto$22.4billion,duetothe$19billionFacebook/WhatsApptransaction
in February. Notable Q3 2014 deals included the: Yahooacquisition of Flurry, a mobile app analytics
anddatapoweredadvertisingplatform,forareported$240million;SamsungElectronicsacquisitionof
home automation app SmartThings for approximately $200 million; and Twitter acquisition of
TapCommerce,providerofmobileadretargetingsolutions,forapproximately$100million.
AboutJEGI
The Jordan, Edmiston Group, Inc. (JEGI), headquartered in New York, NY, has been the leading
independent investment bank for the global media, information, marketing and technology sectors for
nearly 27 years. The firm has completed over 500 highprofile M&A transactions, servicing global
corporations; middlemarket and emerging companies; entrepreneurial owners; and private equity and
venturecapitalfirms.Formoreinformation,visitwww.jegi.com.
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