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Berkery Noyes Releases Private Equity In The Information Industry M&A Report For Full Year 2012

 Berkery Noyes Releases Private Equity In The Information Industry M&A Report
                              For Full Year 2012

PR Newswire

NEW YORK, Jan. 23, 2013

NEW YORK, Jan. 23, 2013 /PRNewswire/ --Berkery Noyes, an independent
mid-market investment bank, today released its full year 2012 mergers and
acquisitions trend report for Private Equity in the Information Industry.

The report analyzes M&A activity in the private equity market during 2012 and
compares it with data covering 2010 and 2011. It features transactions made by
financially sponsored acquirers within the Information Industry, including
purchases made by subsidiaries or platforms of private equity firms.

Financially sponsored M&A in the Information Industry improved 13 percent over
the past twelve months and 34 percent relative to 2010. In contrast,
transaction volume in the Information Industry as a whole, including deals
completed by strategic acquirers, underwent only a three percent gain between
2011 and 2012.

The median revenue multiple in the report declined from 1.8x in 2011 to 1.4x
in 2012, whereas the median EBITDA multiple increased from 9.1x to 9.7x. At
the same time, aggregate transaction value rose from $36.74 billion to $40.79
billion, an 11 percent improvement. Seven of the report's top ten highest
value deals in 2012 occurred during the second half of the year.

Although no private equity information deals met the $3 billion threshold in
2011, there were three such acquisitions in 2012. The Carlyle Group was
involved in two these transactions, making it the largest private equity
acquirer for the year. The leading private equity acquirer in the Information
Industry based on value between 2010 and 2012 was Advent International. Advent
accounted for an estimated $7.55 billion paid in transaction value throughout
the past three years.

In the Media and Marketing portion of the Information Industry, financial deal
value rose from 23 percent of the sector's value in 2011 to 36 percent of
sector value in 2012. This was attributable in part to The Carlyle Group's
acquisition of Getty Images for $3.30 billion – the report's largest
transaction – as well as Permira's acquisition of Ancestry.com for $1.44
billion.

Vista Equity Partners, with 12 transactions, was the most active financial
sponsor in the Information Industry in 2012. Vista's largest industry
transaction during the year was its acquisition of financial software company
Misys for $2.02 billion. Misys was then merged with Turaz, which was
originally known as Thomson Reuters' trade and risk management software unit
before it was acquired by Vista in 2011.

"Private equity firms in 2012 dealt with tax uncertainty, a shifting
regulatory landscape, and pressure to deliver favorable returns to investors
despite lingering macroeconomic challenges," said John Shea, Managing Partner
at Berkery Noyes. "Nonetheless, the near-term outlook for private equity
remains positive across many of the technology based sectors, as indicated by
the numbers in our report." Shea continued, "With more attention being given
to compliance and due diligence concerns, the transaction process in general
seems to be taking longer than it traditionally has. Yet if valuations
continue to align with both buyer and seller expectations, there is the
potential for another strong year of private equity activity ahead."

A copy of the PRIVATE EQUITY IN THE INFORMATION INDUSTRY M&A REPORT FOR FULL
YEAR 2012 is available at the Berkery Noyes website.

About Berkery Noyes

Berkery Noyes is an independent investment banking advisory firm servicing the
information industry. The firm specializes in mergers and acquisitions
advisory, debt and equity financing, and financial consulting services for
companies in the $20 million to $500 million range. Since its founding by
Joseph W. Berkery in 1983, Berkery Noyes has worked with corporate clients to
grow through acquisition, divest non-core assets, and maximize shareholder
returns through strategic transactions and restructurings. For private owners,
Berkery Noyes helps create liquidity and execute timely exit strategies that
achieve their personal and professional objectives. The firm's research teams
publish acquisition activity in the respective sectors they follow on
MandAsoft.com.

Securities services are offered through Berkery Noyes Securities, LLC. For
more information, visit www.berkerynoyes.com.

Contact Information:
Peter Wilson
Berkery Noyes
646-442-7966
peter.wilson@berkerynoyes.com

SOURCE Berkery Noyes

Website: http://www.berkerynoyes.com
 
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