2010 l 3rd Qtr l Trends Report l Information

Tuesday, October 26, 2010

Third Quarter Key Highlights

• The most active acquirer through Q3 2010 was Google Inc. with 22 acquisitions, 10 of which occurred within Q3 2010.
• The largest transaction for Q3 2010 was Intel Corporation’s purchase of McAfee for $7.5 billion.

Third Quarter Key Trends

• Total transaction volume in Q3 2010 increased by 7 percent over Q2 2010, from 487 to 524 transactions.
• Total transaction value in Q3 2010 increased by 20 percent over Q2 2010, from $36.1 billion to $43.5 billion.

Multiples & Value Trends

• Median multiples have made significant gains over Q2 2010. Median EBITDA multiples increased from 10.5 to 15.1, a 43 percent increase and median revenue multiples rose from 1.9 to 2.3, a 21 percent increase.
• Median value has made significant gains over Q2 2010, due in large part to the strong value of transactions in Q3 2010.

Top Ten Deals Through Q3 2010

• The top ten deals by value have shifted considerably since our half year report, with 7 acquisitions entering the list from Q3 2010: Intel Corporation’s acquisition of McAfee, Inc., Hexagon AB’s acquisition of Intergraph Corporation, HP’s acquisition of 3Par Inc., KKR’s acquisition of Visma ASA, IBM’s acquisition of Netezza Corporation, RBS WorldPay, Inc.’s acquisition by Bain Capital and Advent International Corporation, and HP’s acquisition of ArcSight, Inc.
• These 7 acquisitions represent 20 percent of total transaction value through the 1st nine months of 2010, and 63 percent of the Top 10 transaction value.