What You Need to Know About Mobile M&A: Trends, Hot Sectors, Deal Structures and More

SEG has considerable domain expertise in the emerging mobile software sector.  As mobile software M&A skyrockets, we aggregated the last two years of M&A data to identify the emerging trends, highly acquisitive buyers, exit multiples, deal drivers and common deal structures.  A few key highlights:

 
* Mobile software M&A volume jumped 153%
* Of the 17 product categories we track, the three most active were Mobile Advertising, Mobile Apps and Mobile Marketing. How did your category perform?
* Active mobile software buyers include:  eBay, RIM, Velti, Opera and Electronic Arts.  Find out who they bought.
* Of the 15 deal structures we included in this presentation, 7 include financial details and exit multiples – who received the highest multiple and was it paid all in cash or earnout?

 

To review this information and more, download our brief deck by clicking here.  If you find this information useful, send us a note as we have additional information we are happy to share and discuss.

Mintz Levin Presents “What You Need to Get Done Now If You Want to Sell Your Company in 2012”

The following link is a great article written by Mintz Levin regarding critical actions a seller should take to expedite the exit process in 2012 and avoid the negative impact of expected tax hikes in 2013 and beyond.

 

http://www.mintz.com/newsletter/2012/Advisories/1667-0212-NAT-COR/index.htm

SEG-Software Index Mobile Solutions/Content

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG-Internet Index Video Games product category as shown in the SEG December Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

In the month of December, the Mobile Solutions/Content category achieved a median EV/Revenue multiple of 1.8x, TTM Revenue Growth of 8.5%, and EBITDA Margin of 6.4%. Notable companies outperforming their respective category include:

  1. On an EV/Revenue multiple basis, Gree, Opera, and DigitalGlobe Inc. outperformed the category with multiples of 7.2x, 3.5x and 3.1x, respectively.
  2. On a TTM Revenue Growth basis, Trunkbow International Holdings and Gree drastically outperformed the category with a revenue of 117.1% and 101.5%, respectively.
  3. On a TTM EBITDA Margin basis, Trunkbow International Holdings and Gree also outperformed this category with a margin of 51.6% and 50.8%, respectively.





SEG-Software Index IT Conglomerates

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG-Internet Index Video Games product category as shown in the SEG December Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

In the month of December, the IT Conglomerates category achieved a median EV/Revenue multiple of 2.2x, TTM Revenue Growth of 8.2%, and EBITDA Margin of 25.6%. Notable companies outperforming their respective category include:

  1. On an EV/Revenue multiple basis, Oracle Corporation outperformed the category with a multiple of 3.1x.
  2. On a TTM Revenue Growth basis, Microsoft Corporation drastically outperformed the category with a revenue of 14.7%.
  3. On a TTM EBITDA Margin basis, Microsoft Corporation and Oracle Corporation outperformed this category with a margin of 42.4% and 42.0%, respectively.





SEG Publishes Its February 2012 Monthly Flash Report

Our complimentary February 2012 Flash Report assesses the financial and market performance of more than 250 publicly traded software, SaaS, and Internet companies, sorted by product category. The Report also highlights a selection of the most recent software M&A transactions.

Download the report by visiting: http://www.softwareequity.com/research_flash_reports.aspx

SEG-Software Index Healthcare

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG-Internet Index Video Games product category as shown in the SEG December Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

In the month of December, the Healthcare category achieved a median EV/Revenue multiple of 2.8x, TTM Revenue Growth of 21.1%, and EBITDA Margin of 23.1%. Notable companies outperforming their respective category include:

  1. On an EV/Revenue multiple basis, Quality Systems Inc. and Cerner Corporation outperformed the category with multiples of 5.2x and 4.7x, respectively.
  2. On a TTM Revenue Growth basis, Merge Healthcare and eResearch Technology Inc. outperformed the category with a revenue of 89.1%, and 48.9%, respectively.
  3. On a TTM EBITDA Margin basis, Simulations Plus Inc. and Quality Systems Inc. outperformed the category with a margin of 31.2% and 31.0%, respectively.