Press Release: Berkery Noyes Releases Media And Marketing Industry M&A Report for Half Year 2015
NEW YORK - July 14, 2015 - Berkery Noyes, an independent mid-market investment bank, today released its half year 2015 mergers and acquisitions trend report for the Media and Marketing Industry.The report analyzes M&A activity during the first half of 2015 and compares it with the four previous six-month periods from 2013 to 2014.
Deal volume saw a three percent uptick on a half year basis, from 841 to 863 transactions. Total value fell 31 percent, from $52.72 billion to $36.48 billion.This analysis excludes the proposed mega-merger of Time Warner and Charter Communications, which falls outside the report's purview. 11 of the industry's top ten highest value deals in second half 2014 reached the $1 billion threshold, as opposed to five in first half 2015. The median revenue multiple over the past six months decreased from 2.1x to 1.9x, while the median EBITDA multiple declined from 12.0x to 8.7x.
The highest value deal in first half 2015 was Verizon Communications' acquisition of AOL for $4.13 billion in the Internet Media segment. Internet Media also had the largest half year increase in volume, rising 25 percent. Regarding specific Internet Media subsectors, there was a 36 percent rise in the online classifieds marketplace, from 47 to 64 acquisitions. One of the largest related deals thus far in 2015 was CoStar Group's acquisition of Apartment Finder for $170 million.
Marketing transaction volume underwent a four percent increase in first half 2015. In addition, deals in the digital marketing subsector represented 45 percent of the segment's overall activity in first half 2015. Japanese advertising company Dentsu was the overall industry's most active acquirer with nine transactions year-to-date. High profile Marketing deals in first half 2015 included GTCR and Adams Outdoor Advertising's acquisition of Fairway Outdoor Advertising for $575 million; Red Ventures' acquisition of Pitney Bowes' marketing services business, Imagitas, for $310 million; and Solera Holdings' acquisition of DMEautomotive, a provider of marketing solutions for the retail automotive industry, for $143 million.