2011 l 3rd Qtr l Trends Report l Private Equity in Information

Tuesday, October 25, 2011

Third Quarter Key Highlights

• The most active acquirer through Q3 2011 was Thomas H. Lee Partners, L.P. with 13 acquisitions, 3 of which occurred in the third quarter: Collaborative Fusion, Inc., Syndicated Methods, Inc., and the telecommunications business of PivotPoint Solutions.
• The largest announced transaction in Q3 2011 and through the third quarter was Kohlberg Kravis Roberts & Co. and Silver Lake Partners’ acquisition of GoDaddy.com for $2.25 billion.

Third Quarter Key Trends

• Total transaction volume in Q3 2011 increased by 17 percent over Q2 2011, from 92 to 108 transactions.
• Total transaction value in Q3 2011 decreased by 3.5 percent over Q2 2011, from $8.5 billion to $8.2 billion.

Multiples & Value Trends

• Median EBITDA multiples from 2010 to the first nine months of 2011 went from 10.7 to 11.0, a 3 percent increase, while median revenue multiples stayed the same at 1.8.
• Median value has improved from 2009 and 2010, due in part to the large value of transactions in Q2 and Q3 2011.

Top Ten Deals Through Q3 2011

• The top ten deals by value have changed since our half year report, with two acquisitions entering the list from Q3 2011: Kohlberg Kravis Roberts & Co. and Silver Lake Partners’ acquisition of GoDaddy.com and Providence Equity Partners Inc.’s acquisition of Blackboard Inc.
• These two acquisitions, with an aggregate value of $3.96 billion, represent 18 percent of total transaction value in the 1st 3 Quarters of 2011, and 48 percent of Q3 2011 transaction value.