3q17 summary of ma and investment activity - marketing v.6...

Petsky Prunier’s Summary of 3Q17 M&A and Investment Activity Marketing, Media, and Technology Industries

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Digital Media/Commerce was the Most Active Segment with 338 Transactions,

Followed by Marketing Technology with 270 Transactions;

Digital Media/Commerce was the Highest Value Segment with $21.8 Billion in Reported Deal Value

During 3Q17, Petsky Prunier tracked 860 M&A and investment transactions for a total of $43.6 billion across

five broad segments: Digital Media/Commerce, Digital Advertising, Marketing Technology, Agency & Marketing

Services, and Traditional Media. Digital Media/Commerce and Marketing Technology were the most active

segments with 338 and 270 transactions, respectively, while Digital Media/Commerce was the highest reported

value segment totaling $21.8 billion.

$23.0

$34.7

$49.5

$54.9$58.5

3Q16 4Q16 1Q17 2Q17 3Q17

804 860 775 700 756

DOLLAR

VALUE

DEAL

VOLUME

3Q17 Summary of M&A and Investment Activity in the

Marketing, Media, and Technology Industries:

860 Transactions Totaling a Reported $43.6 Billion

Marketing, Media, and Technology Industries

3Q16‐3Q17 M&A and Investment Activity $ in Billions

Marketing, Media, and Technology Industries

3Q17 M&A and Investment Activity $ in Millions

*Transactions valued at $6 billion or more have been excluded from totals to limit comparative distortions. The aggregate total for 2Q17 for Traditional Media does

not include Sinclair Broadcast Group’s pending $6.6 billion TEV acquisition of Tribune Media, including cash, stock, and net debt. The aggregate total for 3Q17 does

not include Discovery Communications’ pending $14.9 billion TEV acquisition of Scripps Networks, including cash, stock, and net debt.

Tribune /

Sinclair

Digital Media /

Commerce$21,764

Traditional Media$7,984Agency &

Marketing Services$2,031

Marketing Technology

$8,038

Digital Advertising$3,777

Scripps

Networks /

Discovery

Commun.


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M&A Activity

Acquisitions accounted for 47 percent of total transactions and 57 percent of reported value in 3Q17. Excluding

Discovery Communications’ pending $14.9 billion acquisition of Scripps Networks, Digital Media/Commerce was

the most valuable M&A segment with 94 transactions, of which 24 were reported for $8.1 billion in value. The

most active subsegment was eCommerce with 40 acquisitions. Transactions in the segment announced during

3Q17 included:

• Liberty Media’s $2.7 billion pending acquisition of HSN in a transaction that will see the company combined

with Liberty‐owned QVC

• Direct‐to‐consumer mattress company Purple’s sale to SPAC Global Partner Acquisition Corp. in a transaction

valuing the company at $1.1 billion

• The acquisition of apartment marketplace ForRent.com by CoStar Group‐owned Dominion Enterprises for a

reported $385 million

• The $328 million acquisition of online jewelry retailer R2Net by Signet

• GrubHub’s acquisition of Yelp’s Eat24 delivery service for $287.5 million

Marketing Technology was the most active M&A segment with 108 transactions, of which 25 were reported for

$5.1 billion in value. Compared with 2Q17, reported acquisition activity within the segment was up 11 percent,

while volume was up 79 percent in the third quarter. CRM was the most active subsegment throughout 3Q17

with 18 acquisitions, a 50 percent increase in volume from the second quarter of the year. Transactions in the

segment announced during 3Q17 included:

• The majority stake taken by Disney in Major League Baseball online streaming platform BAMTec in a

transaction valuing the company at $3.8 billion

• HIS Markit’s majority stake acquisition of automotiveMastermind, a provider of predictive analytics and

marketing automation technology for the automotive industry, from JMI Equity in a transaction valuing the

company at $545 million

• Pitney Bowes’ $475 million acquisition of eCommerce software and technology company Newgistics

• The acquisition of MaxPoint Interactive by Valassis, a subsidiary of Harland Clarke, in a transaction valuing

the company at $108 million

Transaction activity in the Agency & Marketing Services segment was up 35 percent from 2Q17 with 104

transactions, of which 15 were reported for more than $830 million in aggregate value. Select transactions in

the segment announced during 3Q17 included:

• The $175 million acquisition of interactive gifting and incentives company CashStar by BlackHawk Networks

• Societe BIC’s sale of its BIC Graphics promotional products division to H.I.G. Capital for $80 million

• UDG Healthcare’s acquisitions of Cambridge BioMarketing, an industry leading advisor for orphan and rare

disease drug launches, in a transaction valuing the company at $35 million (A Petsky Prunier‐led transaction)

and healthcare communications agency MicroMass Communications in a deal valued at $75.8 million

702 759 769 880 759


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• The majority recapitalization of Medical Knowledge Group, an analytics‐driven and technology‐enabled,

multichannel healthcare marketing and communications provider servicing the biopharmaceutical industry,

by MTS Health Investors (A Petsky Prunier‐led transaction)

There were 42 M&A transactions in the Digital Advertising segment in the third quarter of 2017, of which 20

reported $3.4 billion in value. The Ad Networks/Exchanges and Mobile Marketing subsegments, together,

accounted for nearly one‐third of the segment’s total M&A activity with seven and six transactions,

respectively. Transactions in the segment, a number of which involved the acquisition of public companies by

competitors, announced during 3Q17 included:

• Red Ventures’ pending acquisition of Bankrate in a transaction valuing the company at $1.4 billion, as well as

its acquisition of technology‐enabled sales and marketing solutions company Allconnect (A Petsky Prunier‐led

transaction)

• RTL Group’s acquisition of the remaining 35 percent of shares in online video advertising platform

SpotXchange, bringing its total ownership to 100% in a transaction valuing the company at $404 million

• The pending acquisition of Rocket Fuel in a transaction valuing the company at $145 million by Vector

Capital‐backed Sizmek

• RhythmOne’s pending acquisition of digital video advertising company YuMe in a transaction valuing the

company at $112.1 million

• BlueFocus International’s pending merger with Fluent from cogint in a transaction that will see the merged

companies form a new public company that will have more than $500 million in annualized revenue in 2018

(A Petsky Prunier‐led transaction); in a separate transaction, cogint will spin off its IDI assets into a new

public company to be called Red Violet

Investment Activity

There were 455 investments during 3Q17, of which 419 reported $18.6 billion in value. Reported activity for

venture and growth capital investments was up seven percent from the second quarter of 2017, while value

was down 33 percent. Eighty‐nine percent of investments were made in the Digital Media/Commerce and

Marketing Technology segments with 244 and 162 deals announced, respectively. Digital Media/Commerce was

the highest value segment during the quarter with 235 deals reporting $13.6 billion in value. Investments in the

segment during 3Q17 included:

• Online sports retail company Fanatics’ $1 billion investment at a reported valuation of $4.5 billion from

Softbank

• Ride‐sharing company Via’s $250 million round of funding led by Daimler

• The $200 million investment received by Reddit at a reported valuation of $1.8 billion from Andreessen

Horowitz, Sequoia Capital, Coatue Management, Vy Capital, and Fidelity Investments

• Sofina and BlackRock’s $162 million investment in online health and beauty retailer The Hut Group at a

reported valuation of $3.2 billion


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Marketing Technology was the second most active investment segment with 162 transactions, of which 145

reported $3.0 billion in value. Analytics & Targeting and Commerce Management investments accounted for

nearly one‐third of the segment’s activity with 37 and 15 investments, respectively. Investments in the segment

during 3Q17 included:

• The $75 million Insight Venture Partners‐led investment in consumer guidance and engagement platform

WalkMe

• Customer data platform Segment’s $64 million round of funding from Accel Partners, Y Combinator, Thrive

Capital, and New Enterprise Associates

• Spectrum Equity’s $63 million investment in traffic and shared content analytics company Bitly

• The $60 million Lightspeed Venture Partners‐led investment in search‐driven analytics platform ThoughtSpot

• Gift card marketplace Raise’s Series C investment of $60 million from Accel, PayPal, NEA and Bessemer

Venture Partners, bringing the company’s total funding since 2011 to, reportedly, more than $147 million

There were 28 investments in the Digital Advertising segment, of which 24 reported more than $330 million in

value. The most active subsegments were Comparison Shopping and Vertical Search, announcing six

investments each. Comparison Shopping was the highest value subsegment with $175 million in reported

investment value. Digital Advertising investments during 3Q17 included:

• Pet‐sitting network Rover.com’s $65 million round of funding from Spark Capital, Bespoke Strategies,

StepStone Group, Madrona Venture Group, and Menlo Ventures

• The $39 million round of funding raised by car comparison site Carwow from Accel Partners, Balderton

Capital, and Vitruvian Partners

• The $21.4 million Mediaocean‐led investment in TV and digital video advertising solution VideoAmp

Buyer & Investor Activity

Excluding Discovery Communications’ pending $14.9 billion acquisition of Scripps Networks, strategic buyers

accounted for 92 percent of all control transactions in 3Q17. Of the 376 strategic deals announced, 87 were

reported for $22.8 billion in value. Three‐quarters of strategic activity was in the Digital Media/Commerce,

Marketing Technology, and Agency & Marketing Services segments. The most active strategic acquirers were

advertising holding companies WPP and Dentsu with seven and four transactions announced, respectively.

Buyout firms completed 29 acquisitions in 3Q17, of which 10 were reported for $2.2 billion in value. Nearly half

of all buyout transactions were in the Marketing Technology segment with 13 deals, of which four reported

$1.1 billion in value. Buyout transactions announced in 3Q17 included:

• BlackRock’s acquisition of Clarion Events from Providence Equity Partners in a transaction valued at a

reported $781 million

• The acquisition of digital media measurement software and analytics company DoubleVerify by Providence

Equity Partners for a reported $350 million


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• TA Associates‐backed DiscoverOrg’s acquisition of sales intelligence platform RainKing in a transaction

reportedly valued at more than $100 million

• GTCR’s acquisition of a majority stake in Simpli.fi, a leading programmatic advertising platform built for the

scale of localization and personalization (A Petsky Prunier‐led transaction)

3Q17 Most Active Strategic Buyers by Number of Transactions

Buyer Number of Transactions

Representative Targets

Venture and growth capital investors accounted for 455 transactions, of which 419 were reported for $18.6

billion in value. Compared to 2Q17, investment activity was up seven percent while value was down 33 percent.

Accel Partners and Sequoia Capital were the most active investors during 3Q17 with each completing 16 and 10

investments, respectively.


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3Q17 Most Active Investors by Number of Transactions

Investor Number of Transactions

Representative Investments

IPO Activity

Internet‐enabled real estate brokerage Redfin, entertainment and streaming company Roku, Argentina‐based

online travel company Despegar.com, Finland‐based mobile gaming studio Rovio, and China‐based online

retailer Secoo completed IPOs in the third quarter, with only Secoo pricing below its initial range. Singapore‐

based entertainment company Sea submitted its IPO filing in 3Q17, but has yet to price.

*All values as of 5pm ET on 9/30/17. Transaction values include only reported up‐front cash payments and do

not account for any potential future performance‐based compensation unless noted.


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Quarterly M&A and Investment Activity by Segment

Most Active Digital Media/Commerce Subsegments

2Q17 3Q17 LTM 3Q17 vs 2Q17

(% Change)

SubsegmentNumber of

TransactionsReported

Value ($MM)Number of






Value

eCommerce 158 23,911 165 17,042 550 53,945 4% (29%)

Mobile Content/Apps 39 1,634 54 1,120 182 3,739 38% (31%)

Digital Marketplace 49 3,420 50 1,500 195 10,189 2% (56%)

Gaming 35 1,782 26 1,164 113 4,871 (26%) (35%)

Social Media/Apps 26 905 24 386 112 3,862 (8%) (57%)

Niche Content 25 839 19 553 114 2,797 (24%) (34%)

Web Search/Portals 0 0 0 0 1 640 NM NM

Total 333 32,500 338 21,764 1,268 80,052 2% (33%)

Most Active Digital Advertising Subsegments

2Q17 3Q17 LTM 3Q17 vs 2Q17

(% Change)

SubsegmentNumber of








Value ($MM)

Ad Networks/Exchanges 7 52 11 942 24 1,352 57% 1,715%

Vertical Search 8 35 11 91 43 2,844 38% 158%

Comparison Shopping 5 182 10 288 27 509 100% 59%

Mobile Marketing 11 268 8 63 37 665 (27%) (76%)

Digital Promotion/Coupon 10 674 7 2 33 746 (30%) (100%)

Affiliate/CPA Network 5 44 6 47 15 152 20% 8%

Digital Video 2 43 6 149 15 1,050 200% 247%

Local Search 12 635 6 737 29 1,416 (50%) 16%

Online Lead Generation 7 8 3 1,454 23 1,975 (57%) 19,287%

Game Advertising 0 0 1 3 2 6 NM NM

Search Marketing 2 4 1 0 7 263 (50%) (100%)

Email Services 3 4 0 0 5 34 (100%) (100%)

Total 72 1,948 70 3,777 260 11,012 (3%) 94%

Most Active Marketing Technology Subsegments

2Q17 3Q17 LTM 3Q17 vs 2Q17

(% Change)

SubsegmentNumber of








Value ($MM)

Analytics & Targeting 35 1,473 52 2,101 183 4,613 49% 43%

CRM 25 561 29 656 98 1,996 16% 17%

MRM/Workflow Management 20 140 22 379 57 578 10% 171%

Commerce Management 16 269 21 729 61 1,390 31% 171%

Content Management 10 136 19 194 61 1,274 90% 42%

Email/Messaging Software 17 355 17 168 57 760 0% (53%)

Search & Discovery 15 367 15 623 48 1,131 0% 70%

SFA/Lead Management 21 730 11 288 54 1,229 (48%) (60%)

Social Technology 14 90 11 100 55 393 (21%) 10%

Other 81 2,710 73 2,800 330 16,780 (10%) 3%

Total 254 6,830 270 8,038 1,004 30,145 6% 18%


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About Petsky Prunier LLC

Petsky Prunier www.petskyprunier.com is one of the leading investment banks in the technology, media, marketing, eCommerce, and

healthcare industries. Our firm's merger and acquisition and private placement advisory services reflect a unique blend of product

specialization and industry expertise. Together with strategic consulting firm Winterberry Group, a Petsky Prunier company, our

organization represents one of the largest industry‐specific advisors providing strategic and transactional services. We offer global

reach supplemented through our partnerships with investment bank The Mountain Capital Group in China, as well as Allegro Advisors

and o3 Capital in India. Securities transactions are processed through Petsky Prunier Securities LLC, a member of FINRA and an

affiliated entity.

For press inquiries, please contact Amy LaBan at 212.842.7126 or [email protected].

2Q17 3Q17 LTM 3Q17 vs 2Q17

(% Change)

SubsegmentNumber of








Value ($MM)

Digital Agency 33 208 33 211 121 690 0% 1%

Public Relations 9 0 12 0 34 0 33% NM

Specialty Agency 2 0 8 1,190 15 1,195 300% NM

Design Agency 6 0 6 10 30 47 0% NM

General Agency 4 4,074 6 0 17 4,265 50% (100%)

Healthcare Agency 1 0 6 203 11 226 500% NM

Loyalty/Retention 2 0 5 175 15 225 150% NM

Promotion Agency 3 0 5 0 14 0 67% NM

Experiential Marketing 5 0 4 23 15 1,323 (20%) NM

Social Agency 1 0 4 0 10 0 300% NMAd Specialty/Premiums 3 76 3 83 9 383 0% 9%

Database/Analytics 2 0 3 0 11 574 50% NM

Other 9 5 15 125 47 1,262 67% 2,398%

Total 80 4,363 110 2,031 349 10,190 38% (53%)

2Q17 3Q17 LTM 3Q17 vs 2Q17

(% Change)

SubsegmentNumber of








Value ($MM)

Entertainment Media 24 1,822 27 547 90 5,414 13% (70%)

B-to-B Media 10 35 11 806 37 1,461 10% 2,184%

Consumer Magazine Publishing 13 0 10 174 41 654 (23%) NM

Broadcast Television 3 615 7 1,570 21 3,041 133% 155%

Newspaper Publishing 7 25 6 181 14 206 (14%) 634%

Consumer Book Publishing 2 40 4 4,466 10 4,700 100% 11,065%

Traditional Outdoor 1 94 4 240 10 1,225 300% 154%

Digital Place-Based Media 4 2 3 0 14 11 (25%) (100%)

Radio 1 0 0 0 2 1,485 (100%) NM

Total 65 2,633 72 7,984 239 18,197 11% 203%

Most Active Agency & Marketing Services Subsegments

Traditional Media


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Representative Recent Transactions

*Approximate Transaction Value

3q17 summary of ma and investment activity - marketing v.6...

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