2018 KEY HIGHLIGHTS

• The Finance vertical’s largest sponsored deal in 2018 was a

Blackstone Group led consortium’s announced acquisition of a

55 percent stake in Thomson Reuters Financial & Risk division

for $11 billion.

• The Healthcare vertical’s largest sponsored deal in 2018

was Veritas Capital and Evergreen Coast Capital’s announced

acquisition of athenahealth, a provider of network-enabled

services for hospital and ambulatory customers, for $5.6

billion.

• The Education vertical’s largest sponsored deal in 2018

was Platinum Equity’s acquisition of Josten’s, which provides

school related products such as yearbooks and class rings,

for $1.3 billion.

2018 KEY TRENDS

• Total transaction volume in 2018 increased by ten percent over

2017, from 821 to 902.

• Total transaction value in 2018 rose by 40 percent over 2017,

from $65.31 billion to $91.53 billion.

• The median revenue multiple shifted slightly from 2.6x in 2017

to 2.7x in 2018. The median EBITDA multiple improved from

12.7x in 2017 to 14.2x in 2018.

M&A MARKET OVERVIEW

Berkery Noyes tracked 2,396 private equity transactions in the

Information Industry between 2016 and 2018, of which 372

disclosed fi nancial terms, and calculated the aggregate value to be

$171.80 billion. Based on known transaction values, we project

values of 2,024 undisclosed transactions to be $47.05 billion,

totaling $218.85 billion worth of transactions tracked over the past

three years.

Disclosed median enterprise value multiples for all segments

combined in this report during the last 36 months were 2.5x revenue

and 12.6x EBITDA.

PRIVATE EQUITY INDUSTRYFinancially Sponsored Transactions within the Information Industry

FULL YEAR 2018 :: Mergers and Acquisitions Trend Report

Presented by Berkery Noyes 1

Figure 1. 2016-2018 value and volume comparison.

Figure 2. 2016-2018 median revenue and EBITDA comparison.

2

Transaction Analysis :: January 1, 2018 – December 31, 2018

M&A Dynamics by Acquirer Type :: January 1, 2018 – December 31, 2018

M&A Dynamics by Transaction Type and Industry

Figure 5. Presents the transaction volume by target segment for private equity transactions in the Information Industry.

Note: Financially sponsored transactions include private equity backed strategic acquisitions.

ValueValue ValueVolume Volume VolumeMedia & Marketing Online & Mobile Software

61 %

39 %

15 %

85 %

69 %

31 %

80 %

20 %

70 %

30 %

75 %

25 %

Strategic Transactions Financial Transactions

Figure 3. Shows distribution of private equity transactions in the Information Industry based on publicly available information and Berkery Noyes estimates. Using a logarithmic scale, we determined that nearly one-third of companies purchased had transaction values of $33.1 million to $244.7 million. Based on this data, we estimate the total transaction value of deals done in 2018 at $91.5 billion.

* Indicates largest transaction in the industry from Jan. 1, 2018 to Dec. 31, 2018. Figure 4. Presents the data depicted in the bell curve histogram.

Distribution Table

Purchaser Analysis

Transactions Involving an Online Component

©2019 Berkery Noyes 3

Top Ten Notable Transactions 2018

Figure 7. Presents the median enterprise value/revenue multiples paid for private equity transactions in the Information Industry from Jan. 1, 2016 to Dec. 31, 2018 based on publicly available sales price and revenue data.

Figure 6. Lists the top ten transactions for 2018 and calculates their aggregate transaction value as a percentage of the 2016 total aggregate transaction value as shown on Figure 1 & 4.

Note: Transaction data based on announced date. Deal value represents total consideration paid by the acquirer.

Figure 8. Percentage of total Information Industry transactions where the target company conducts the majority of their business online. The total percentages are measured by Half Year from 2016-2018.

Transaction Percentages of Online Targets

Online Targets Other Targets

2 First Quarter 20112 First Q2 st Quarter 2011rst Qu ereree

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Founded in 1980, Berkery Noyes is a leading independent investment bank serving the information, software, marketing, and technology industries. Th e � rm has initiated, managed, and

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� nancial services, education, and entertainment markets.

Berkery Noyes Securities LLC assists middle market companies with raising growth capital in the debt and equity markets.

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MANAGING DIRECTORS

VINEET ASTHANAMedia and Technology Group

BRIAN DECICCOB2B Media Group

JOHN GUZZO Financial Technology Group

JONATHAN KRIEGERHealthcare Group

MARTIN MAGIDACorporate Finance Group

THOMAS O’CONNORHealthcare Group

PETER OGNIBENEFinancial Technology Group

JEFFREY SMITHHealthcare Group

JASON WHITEConsumer Group

PETER YOONEducation Group

MARY JO ZANDYEducation, Media, and Generalist Groups

PARTNERS

JOSEPH BERKERYChief Executive Offi cer

JAMES BERKERYManaging Partner

All charts in this report are based on data gathered by Berkery Noyes’ research department. All time period statistics are based

on the transaction announcement date. Th e information contained herein is of a general nature and is not intended to address the circumstances of any particular company, individual, or entity. Th ere can be no guarantee that such information is accurate.

For current intelligence on Mergers and Acquisitions activity in the Information Industry please visit our online service at

www.mandasoft.com

The DNA of M&A

H AS ACQU I RED

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A PORT FOLI O COM PAN Y OF

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