2009 l Mid Year l Trends Report l Online

Monday, July 06, 2009

1st Half 2009 Key Highlights

• The most active buyer in the Online Industry, in terms of volume of transactions announced for the 1st Half of 2009, was IAC/InterActiveCorp with 4 transactions. These include the acquisitions of SportsPickle.com, Market Hardware, Inc., Urbanspoon, and Sendori, Inc.
• The segment with the largest transaction volume for the 1st Half of 2009 was SaaS/ASP with 92 transactions.
• In the 1st Half of 2009, there were 30 financially sponsored transactions with an aggregate value of $355 million. These figures represent 11 percent of the total volume and 5 percent of the total value, respectively.

1st Half 2009 Key Trends

• Total transaction volume in the 1st Half of 2009 decreased by 22 percent over the 1st Half of 2008 from 364 in 2008 to 285 in 2009.
• Total transaction value in the 1st Half of 2009 decreased by 49 percent over the 1st Half of 2008, from $15.03 billion in 2008 to $7.68 billion in 2009.
• The segment with the largest increase in value in the 1st Half of 2009 over the 1st Half of 2008 was E-Commerce with a 17 percent increase from $2.81 billion in 2008 to $3.29 billion in 2009.

M&A Market Overview

• Out of 1725 transactions tracked by Berkery Noyes between 2007 and the 1st Half of 2009, 574 had disclosed enterprise values with an aggregate of $79.49 billion. Using these values in a histogram on a logarithmic scale, we project an aggregate value of $25.31 billion for the 1151 undisclosed transactions. In total, we project a combined aggregate value of $104.81 billion worth of transactions.
• The largest transaction tracked by Berkery Noyes between 2007 and the 1st Half of 2009 was Microsoft Business Solutions’ announced acquisition of aQuantive, Inc. for $5.75 billion
• In terms of value, the most active market segment that Berkery Noyes tracked between 2007 and the 1st Half of 2009 was E-Commerce with an aggregate transaction value of $30.50 billion.
• The most active buyer in the Online Industry in terms of value of transactions announced between 2007 and the 1st Half of 2009 was Microsoft Corporation with 10 acquisitions (BigPark, Inc., Greenfield Online, Inc., Farecast, Danger, Inc., Jellyfish.com, AdECN, Inc., aQuantive, Inc., ScreenTonic, Tellme Networks, Inc. and MedStory, Inc.) totaling $7.67 billion.