Q1 2010 marketing and digital media transaction activity up year-over-year
March 31, 2010
Petsky Prunier Investment Bankers recently announced that Q1 2010 mergers, acquisitions and investment activity in the marketing, information and digital media industries increased significantly versus Q1 2009.
Despite the incrrease, though, aggregate transaction value decreased from Q409, primarily due to one transaction, TPG's take–private of IMS Health for approximately $5 billion at the end of 2009.
During Q1 2010, Petsky Prunier tracked 201 transactions for a total of $8.8 billion across seven broad segments: interactive advertising, advertising and promotion, out–of–home and specialty media, marketing technology, digital media, software and information and marketing services.
Software and information and marketing services were the two highest value segments, with $3 billion and $2.1 billion in transaction value, respectively. Strategic buyers accounted for the largest portion of overall activity, with 123 transactions (61 percent of the quarter's total) worth an estimated $6.9 billion (79 percent of total). Venture and growth capital investors announced 71 transactions for $1 billion, with the majority of their activity concentrated in the interactive advertising, marketing technology and digital media segments.
Interactive advertising was the most active segment in Q1 2010, with 56 transactions and approximately $1.6 billion in value. Two large transactions, Apple's $250 million acquisition of mobile advertising network Quattro Wireless and Denstu Holdings' $200 million acquisition of interactive agency Innovation Interactive, accounted for 28 percent of deal value in the segment.
Mobile advertising was the most active subsegment with 18 transactions valued at $590 million. The interactive agency subsegment had 12 deals worth $463 million, whereas the ad networks/exchanges subsegment had 10 deals for $225 million in total value.