Q3 2014 Mobile Industry Overview

Mergers & Acquisitions  Capital Raising  Strategic Advisory
Mobile Industry Update
Q3 2014
1 │ Internet Industry Update Q3 2014
Vista Point Advisors Overview
Vista Point Advisors was founded on the principle that founder-led technology companies in the emerging and
middle markets are unique and require specialized attention and advice when considering investment and exit
opportunities. Our unique focus on sell-side processes provides our clients with unconflicted advice that assures
our interests are completely aligned with the entrepreneur. VPA is focused exclusively on working with founderowned and operated businesses to deliver the most favorable transactions at premium valuations.
Unconflicted Advice
Deep Technology
Domain Expertise
Differentiated Negotiation
Framework
Vista Point exclusively provides sell-
Vista Point bankers are industry
The firm utilizes a unique negotiation
side M&A and Capital Raising advisory
specialists that focus exclusively on
framework to increase the
services to technology businesses
core technology markets allowing us
competitiveness of the transaction
removing the conflict of interest
to provide relevant insights into our
process, and ultimately yield higher
associated with working both sides of
client’s business and create the
valuations at better terms for clients.
the table.
strategic framework to optimize
valuation.
2 │ Mobile Industry Update Q3 2014
Q3 2014 Mobile Industry Overview
• Q3 2014’s mobile acquisitions totaled $18.7 billion in transaction value, representing a 143% increase over Q2
2014
─
Q3 2014 experienced 122 acquisitions, up 14% over the previous quarter
─
Mobile M&A activity over the last 12 months has featured an unprecedented number of acquisitions
• Mobile-focused mergers and acquisitions are up 5x from 2013
• Major opportunities for investment and exit opportunities include mobile commerce, business services,
education, and wearables, as well as lifestyle, medical, news and social networking applications
3 │ Mobile Industry Update Q3 2014
Global Mobile Traffic and Connectivity
Number of Mobile Internet Connections
Mobile Subscriptions per Capita
279
Mobile Internet Connections (millions)
300
260
234
250
1.4
1.2
1.2
204
1
200
1.0
0.8
167
0.9
0.8
131
150
0.6
86
100
0.2
49
50
2
6
16
0.3
0.4
0.2
24
0
Global
0
Developed Nations
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Smartphone Operating System Global Market Share
1.0%
3.9%
Basic
Developing Nations
Data
Global Mobile Traffic as a % of Total Internet Traffic
30%
1.3%
25%
25%
14.9%
20%
Android
iOS
Microsoft
15%
15%
10%
10%
6%
BlackBerry
Others
78.9%
Sources: IBISWorld, Cisco, KPCB, IDC. Q2 2014
4 │ Mobile Industry Update Q3 2014
5%
1%
2%
0%
2009
2010
2011
2012
2013
2014
Active Acquirers and Notable Transactions
Most Active Acquirers (Since 2010)
$17.4
Transaction Value ($bn)
$20.0
$15.0
$10.0
$5.1
$5.0
$1.1
N/A
N/A
$0.1
N/A
$1.3
$0.4
$0.2
$0.2
$0.1
$0.1
$0.1
N/A
$0.0
Number of Transactions
30
2
25
Deals <$1bn
Deals >$1bn
20
1
1
15
25
10
16
13
5
9
1
8
6
0
5
4
4
4
4
4
4
4
4
Notable Recent Transactions
Acquirer
Target
Date
7/17/2014
7/21/2014
7/31/2014
8/6/2014
9/27/2014
EV
N/A
N/A
N/A
N/A
N/A
EV / LTM Rev
N/A
N/A
N/A
N/A
N/A
EV / LTM EBITDA
N/A
N/A
N/A
N/A
N/A
Source: Capital IQ as of 9/30/14 Only includes reported transaction values.
5 │ Mobile Industry Update Q3 2014
Mobile M&A Market Overview
Quarterly Mobile M&A Value and Deal Count (Since 2010)
$18.7
$20
$18
Transaction Value ($bn)
$16
$14
$12
$10
$8.0
$5.7
$8
$6
$4.0
$4
$2
$3.2
$2.7
$0.1
$0.5
$2.9
$1.4 $0.1
$0.2
$4.1
$4.3
$0.4
$7.7
$6.1
$2.9
$2.2
$0
140
122
107
100
87
80
56
57
60
Q2 '11
60
61
Q1 '11
60
Q4 '10
Number of Transactions
120
94
91
96
79
91
97
83
72
68
73
48
40
20
0
Q3 '14
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
6 │ Mobile Industry Update Q3 2014
Q3 '11
Q3 '10
Q2 '10
Q1 '10
Source: Capital IQ as of 9/30/14
Mobile M&A Market Overview
Transactions by Reported Value
Q2 '14
Q3 '14
49%
>$1B
$500M - $1B
$250M - $500M
$100M - $250M
$50M - $100M
<$50M
23%
Total: $8B
71%
22%
Total: $19B
6%
22%
8%
Transactions by Target Funding
100%
50m+
$30 - $50M
80%
$10 - $30M
60%
$0.1 - $10M
Undisclosed
40%
70%
67%
47%
Q2 '10
Q3 '10
20%
47%
51%
58%
59%
58%
66%
63%
63%
68%
67%
58%
53%
56%
61%
47%
43%
0%
Q3 '14
Q2 '14
Q1 '14
Q4 '13
Q3 '13
Q2 '13
Q1 '13
Q4 '12
Q3 '12
Q2 '12
Q1 '12
Q4 '11
Q3 '11
Q2 '11
7 │ Mobile Industry Update Q3 2014
Q1 '11
Q4 '10
Q1 '10
Source: Capital IQ as of 9/30/14
No Funding
Select Quarterly Mobile M&A Transactions
Date
09/30/14
09/27/14
09/26/14
09/24/14
09/24/14
09/23/14
09/23/14
09/22/14
09/22/14
09/22/14
09/19/14
09/19/14
09/18/14
09/18/14
09/17/14
09/17/14
09/17/14
09/16/14
09/16/14
09/15/14
09/15/14
09/12/14
09/11/14
09/11/14
09/11/14
09/05/14
09/05/14
09/04/14
09/03/14
09/03/14
09/03/14
09/03/14
09/03/14
09/03/14
09/03/14
09/02/14
09/02/14
09/02/14
09/02/14
09/01/14
08/29/14
08/28/14
08/28/14
08/27/14
08/26/14
Target
Acquirer
Mobile Type
DataPad
shopkick
Yahoo!
Medium Entertainment
Path 36
Nexage
LocalVox Media
TalkPoint Holdings
Aviary
Corral Labs
Brink Software
BranchOut
Southern Experience
Concur Technologies
Transport Innovation
800 Commerce
UberSense
Pheed
OneHealth Solutions
Cryptosoft
PrePlay
Genares Worldwide Reservation Services
Movirtu
Eventjoy
Conversant
Cellfire
Agence Piranha
Brightkit
Location Labs
Baseline
Mhelpdesk
RideScout
ShopIgniter
Kineto Wireless
iHunt Calls
IRISmaps
XRS
PrinterOn
Ten Eight
Perform Group
Pethealth
Cobra Electronics
Ariel Communications
TagPoints
moosify
Cloudera
SK Planet
Starboard Value
Science Media
Vemory
Millennial Media
TBC Holdings I
Premiere Global Services
Adobe Systems
Lyft
ParTech
The Hearst Corporation
Cox Enterprises
SAP America
Vine Street Capital
Battery On The Go
Agile Sports Technologies
Mobli Technologies 2010
Viverae
TERN
FanVision Entertainment
Sabre
BlackBerry
Ticketmaster Entertainment
Alliance Data Systems
Catalina Marketing
Human Equation
HootSuite Media
AVG Technologies USA
Gracenote
HomeAdvisor
car2go
Mixpo
Taqua
Altus Brands
OmniEarth
Omnitracs
Samsung Electronics Canada
RealNex
Access Industries
Fairfax Financial Holdings
Monomoy Capital Partners
Monecor (London)
SmartFocus
Tastebuds Media
Business
Consumer
Consumer
Business
Consumer
Business
Business
Business
Development
Consumer
Business
Consumer
Consumer
Consumer
Business
Business
Consumer
Consumer
Consumer
Business
Development
Consumer
Consumer
Consumer
Business
Consumer
Consumer
Business
Consumer
Business
Business
Consumer
Business
Consumer
Consumer
Business
Business
Business
Business
Consumer
Business
Consumer
Business
Business
Consumer
Note: $ in Millions. EV/EBITDA multiples less than 0x are considered not meaningful.
Source: Capital IQ as of 9/30/14
8 │ Mobile Industry Update Q3 2014
Sector
Business Intelligence
Ecommerce
Diversified Media
Advertising and Marketing
Video Management
Advertising and Marketing
Advertising and Marketing
Telecommunications
Development
Transportation / Logistics
Fintech
Knowledge / Content (Social)
Ecommerce
Fintech
Transportation / Logistics
Fintech
Video Management
Knowledge / Content (Social)
Knowledge / Content (Social)
Security / Storage
Sports
Travel / Hospitality
Telecommunications
Transportation / Logistics
Advertising and Marketing
Ecommerce
Advertising and Marketing
Advertising and Marketing
Security / Storage
Business Intelligence
Content and Services
Transportation / Logistics
Advertising and Marketing
Telecommunications
Diversified Media
Mapping / Tracking
Transportation / Logistics
Content / Document Management
Travel / Hospitality
Diversified Media
Business Software
Mapping / Tracking
Fintech
Advertising and Marketing
Knowledge / Content (Social)
Enterprise
Value
N/A
N/A
N/A
N/A
N/A
$88
N/A
N/A
N/A
N/A
$17
N/A
N/A
$7,652
$19
N/A
N/A
N/A
N/A
$0
N/A
N/A
$33
N/A
$2,365
N/A
N/A
N/A
$233
$50
N/A
N/A
N/A
N/A
N/A
N/A
$178
N/A
N/A
$1,078
$84
$44
N/A
N/A
N/A
Target LTM
Revenue
EBITDA
N/A
N/A
$4,622
N/A
N/A
$6
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$668
N/A
$0
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$594
N/A
N/A
N/A
$27
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$53
N/A
N/A
$401
$45
$114
N/A
N/A
N/A
N/A
N/A
$1,784
N/A
N/A
($8)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$32
N/A
($0)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$198
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$6
N/A
N/A
$51
$2
$4
N/A
N/A
N/A
Enterprise Value /
LTM Revenue LTM EBITDA
N/A
N/A
N/A
N/A
N/A
14.4x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
11.5x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4.0x
N/A
N/A
N/A
8.5x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3.3x
N/A
N/A
2.7x
1.9x
0.4x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/M
N/A
N/A
N/A
N/A
N/A
N/A
N/A
235.9x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
12.0x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
28.9x
N/A
N/A
21.1x
38.9x
12.4x
N/A
N/A
N/A
Select Quarterly Mobile M&A Transactions (cont.)
Date
08/26/14
08/22/14
08/22/14
08/21/14
08/21/14
08/21/14
08/20/14
08/19/14
08/18/14
08/18/14
08/15/14
08/12/14
08/11/14
08/11/14
08/08/14
08/08/14
08/07/14
08/06/14
08/06/14
08/06/14
08/05/14
08/05/14
08/05/14
08/04/14
08/04/14
08/04/14
08/04/14
07/31/14
07/31/14
07/31/14
07/31/14
07/30/14
07/30/14
07/29/14
07/29/14
07/29/14
07/29/14
07/29/14
07/28/14
07/24/14
07/24/14
07/23/14
07/23/14
07/22/14
07/21/14
Target
Acquirer
Mobile Type
Trulioo
Moonshark
1006397 B.C.
WillCall
SumTotal Systems
Sign-Up Technologies
Tsugi
Maxie Mobile
Brand Reporter
Hiq Lockscreen
Jetpac
GlobalBay Technologies
FiveCubits
Leaf Holdings
SafeNet
Neon Stingray
CardSmith
Brightstar
Directr
Opinionmeter International
[x+1]
ComCanada Communications
MentorMate
MdotLabs
Schematic Labs
Double Encore
Anuva Automation
Taptica
SpotXchange
MyMobiPoints.com
Propeller
Empowered Careers
Plastic Jungle
Reckon
Blendspace
Sifteo
Markover
Hub Data
Trulia
DoubleVision Networks
My City Venue
Together Games
Eventful
Juniper Networks, Pulse Product Portfolio
Umojawa
UST Global
Hitcents
SecureCom Mobile
Ticketfly
SkillSoft
Host Europe WVS
Unity Technologies
Global Payout
YPB Group
Science Media
Google
Manhattan Associates
Command Alkon
Heartland Payment Systems
Gemalto
Valtech
Blackboard
SoftBank
YouTube
PeriscopeIQ
Rocket Fuel
Rock Solid Internet & Telephone
Taylor
comScore
Rhapsody International
Possible Worldwide
Anuva Services
Marimedia
RTL Group
Genius Properties
Palantir Technologies
Qualcomm Technologies
CardCash
Highclere International Investors
Tangient
3D Robotics
Palantir Technologies
Engage Mobility
Zillow
Single Touch Systems
Secret Escapes
GameSalad
CBS Local Media
Siris Capital Group
Crowdera
Consumer
Development
Consumer
Consumer
Business
Business
Development
Consumer
Business
Consumer
Consumer
Business
Business
Business
Business
Consumer
Consumer
Consumer
Consumer
Business
Business
Business
Development
Business
Development
Development
Consumer
Business
Business
Development
Development
Consumer
Consumer
Business
Consumer
Development
Consumer
Business
Consumer
Business
Consumer
Development
Consumer
Business
Consumer
Note: $ in Millions. EV/EBITDA multiples less than 0x are considered not meaningful.
Source: Capital IQ as of 9/30/14
9 │ Mobile Industry Update Q3 2014
Sector
Security / Storage
Development
Telecommunications
Ecommerce
Human Capital
Advertising and Marketing
Development
Fintech
Business Software
Education
Travel / Hospitality
Retail Software
Supply Chain
Fintech
Security / Storage
Integration / Middleware
Education
Telecommunications
Video Management
Advertising and Marketing
Advertising and Marketing
Telecommunications
Development
Advertising and Marketing
Development
Development
Systems / Network
Advertising and Marketing
Advertising and Marketing
Development
Development
Education
Fintech
Accounting / ERP
Education
Development
Advertising and Marketing
Systems / Network
Travel / Hospitality
Advertising and Marketing
Ecommerce
Platform / OS
Diversified Media
Security / Storage
Platform / OS
Enterprise
Value
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$1
N/A
N/A
N/A
N/A
N/A
$890
N/A
N/A
$790
N/A
N/A
$236
N/A
N/A
$5
N/A
N/A
N/A
N/A
$222
$0
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$3,091
$5
N/A
N/A
N/A
$250
N/A
Target LTM
Revenue
EBITDA
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$72
N/A
N/A
N/A
N/A
$8
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$94
N/A
N/A
N/A
N/A
$209
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$26
N/A
N/A
N/A
N/A
($26)
N/A
N/A
N/A
N/A
N/A
N/A
Enterprise Value /
LTM Revenue LTM EBITDA
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3.3x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
14.8x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/M
N/A
N/A
N/A
N/A
N/A
N/A
Select Quarterly Mobile M&A Transactions (cont.)
Date
07/21/14
07/18/14
07/17/14
07/17/14
07/16/14
07/16/14
07/15/14
07/14/14
07/14/14
07/14/14
07/14/14
07/14/14
07/14/14
07/11/14
07/11/14
07/11/14
07/11/14
07/10/14
07/10/14
07/10/14
07/10/14
07/09/14
07/08/14
07/08/14
07/08/14
07/08/14
07/07/14
07/07/14
07/07/14
07/07/14
07/01/14
07/01/14
Target
Acquirer
Mobile Type
Flurry
First American Payment Systems
Citrus Lane
CardSpring
Mobotap
CoFoundersLab
zipRealty
TikForce
Creativebug
CoverItLive
123Comply
Bloson.com
Semantria
ZipLocal
RelateIQ
Boston Technologies
RayV
All Homes
Livelynk Group
Iboss International
ProcureApp
LoopPay
Xtreme Mobility Assets
FotoPunch
Talksoft
SocialKaty
Newport Media
Trusted Positioning
Conductiv
WCS Enterprises
Meritus Payment Solutions
Songza Media
Yahoo!
Ontario Teachers' Pension Plan
Care.com
Twitter
Changyou.com
Onevest
Realogy Group
Palace Resources
AT&T, The Chernin Group
Scribble Technologies
Collections Solutions Software
Ecosia
Lexalytics
Enthrive
Salesforce.com
Forexware
Yahoo!
Fairfax Media
Lithex Resources
My Net Fone
Runzheimer International
Synchrony Financial
Mobile Lads
Asure Software
RevSpring
Manifest Digital
Atmel
InvenSense
Zero2Sixty Software
Calibrus
Optimal Payments
Google
Business
Business
Consumer
Business
Development
Consumer
Business
Business
Consumer
Consumer
Business
Consumer
Business
Consumer
Business
Business
Business
Consumer
Business
Business
Business
Consumer
Business
Business
Business
Business
Development
Consumer
Business
Consumer
Consumer
Consumer
Mobile Median
Mobile Mean
Note: $ in Millions. EV/EBITDA multiples less than 0x are considered not meaningful.
Source: Capital IQ as of 9/30/14
10 │ Mobile Industry Update Q3 2014
Sector
Advertising and Marketing
Fintech
Ecommerce
Fintech
Platform / OS
Knowledge / Content (Social)
Advertising and Marketing
Human Capital
Education
Video Management
Governance, Risk, & Compliance
Ecommerce
Knowledge / Content (Social)
Ecommerce
CRM
Fintech
Video Management
Ecommerce
Advertising and Marketing
Telecommunications
Fintech
Fintech
Fintech
Human Capital
Telecommunications
Knowledge / Content (Social)
Telecommunications
Mapping / Tracking
Ecommerce
Knowledge / Content (Social)
Fintech
Diversified Media
Enterprise
Value
Target LTM
Revenue
EBITDA
Enterprise Value /
LTM Revenue LTM EBITDA
N/A
N/A
$49
N/A
$178
N/A
$157
$2
$10
N/A
N/A
N/A
N/A
N/A
$391
N/A
N/A
$47
$7
$1
N/A
N/A
$9
$5
N/A
N/A
$170
$31
N/A
N/A
$211
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$70
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$43
N/A
N/A
N/A
$74
N/A
N/A
N/A
N/A
N/A
N/A
N/A
($6)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
($1)
$13
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2.3x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4.0x
N/A
N/A
N/A
2.8x
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/M
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
16.3x
N/A
$50
$503
$72
$418
$5
$148
3.3x
5.7x
21.1x
52.2x
Representative Vista Point Advisors Transactions
has been acquired by
has been acquired by
has been acquired by
has been acquired by
August 2014
April 2014
March 2014
November 2013
has been acquired by
has been acquired by
has been acquired by
received a strategic investment from
March 2013
March 2012
January 2013
March 2013
received a strategic investment from*
has been acquired by
has been acquired by
has been acquired by
November 2010
January 2013
October 2011
October 2011
has been acquired by*
has been acquired by*
has been acquired by
has been acquired by*
December 2010
October 2010
May 2012
September 2010
*Completed by VPA professionals while at another investment bank
11 │ Mobile Industry Update Q3 2014
Vista Point Advisors Overview
Vista Point Advisors is a boutique investment bank focused on capital
raises and M&A advisory for growing technology companies
Software
•
•
•
•
•
Internet
•
•
•
•
•
Software-as-a-Service
On-premise
Application Software
Healthcare IT
Financial Tech
90 New Montgomery, Suite 700
Mobile
Advertising and Marketing
Digital Media
Gaming
Content
Platforms
•
•
•
•
•
Consumer Applications
Enterprise Applications
Gaming
Payments
Infrastructure
Mike Lyon
Jeff Bean
Jeffrey Koons
415.659.9187
[email protected]
415.659.9190
[email protected]
415.659.9189
[email protected]
David Cho
Scott Austin
Mike Greco
415.547.8440
[email protected]
415.547.8437
[email protected]
415.659.9191
[email protected]
Thomas Lin
Miles Lacey
Russell Perkins
415.692.6163
[email protected]
415.659.9278
[email protected]
415.501.9029
[email protected]
San Francisco, CA 94105
12 │ Mobile Industry Update Q3 2014
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