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Media M&A Leader JEGI Completes Nine Transactions and
Builds Pipeline of New Clients
The Jordan, Edmiston Group, Inc. (JEGI), the clear leader in M&A for the media, information, marketing services and technology sectors, has completed nine transactions in 2010 YTD, including:
- Five divestitures of B2B media assets on behalf of Reed Elsevier’s Reed Business Information-US (www.reedbusiness.com/us), including the sale of Publishers Weekly to PWxyz, LLC; Interior Design, Furniture/Today and six sister publications and related online assets to Sandow Media; Library Journal and School Library Journal to Media Source Inc.; and four media brands serving the U.S., Asia, and Europe advanced design engineering sector to Canon Communications in two separate transactions.
- The sale of dmg world media’s (www.dmgworldmedia.com), a division of Daily Mail & General Trust, Alberta Gift Show and Montreal Gift Show to the Canadian Gift & Tableware Association (www.cgta.org), a not-for-profit association serving the $10-billion giftware industry, which comprises over 1,600 members.
- A $12 million growth capital raise for EDGAR Online (Nasdaq: EDGR) (www.edgar-online.com), a leader in the distribution of public company filings and in the eXtensible Business Reporting Language (XBRL) financial reporting standard, from Bain Capital Ventures (www.baincapitalventures.com), the Boston-based venture capital arm of Bain Capital.
- The sale of Burton Group (www.burtongroup.com), a leading research and advisory services firm that focuses on providing practical, in-depth IT research and advisory services to front-line IT professionals, to Gartner (NYSE: IT) (www.gartner.com), a leading provider of research and analysis on the global information technology industry, for approximately $56 million.
- The sale of The Economist Group’s (www.economistgroup.com) CFO Publishing (www.cfo.com) to private equity firm Seguin Partners, LLC (www.seguinpartners.com), in partnership with CFO’s management. CFO is the leading business-to-business media brand focused on the information needs of c-level and senior finance executives.
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JEGI’s client is mentioned first in each
of the above transactions.
M&A Market Continues to Recover in Q1
According to JEGI’s Q1 2010 M&A report, the M&A market continues to recover, following a dramatic decline in late 2008 through mid-2009. In Q1 2010, the number of deals announced increased 70% and overall transaction value rose to over five times Q1 2009 levels, across the 10 media, information, marketing services and technology sectors tracked by JEGI. The strong increase in year-over-year M&A activity was driven by six sectors: B2B Online Media (number of deals up 12x), B2C Online Media (+79%), Business-to-Business Media (up nearly 5x), Database & Information Services (+200%), Marketing & Interactive Services (+41%), and Mobile Media & Technology (+300%).
JEGI expects the M&A market for both traditional and interactive media to continue to accelerate in 2010 for the following key reasons:
- Strong Buyer Pool – Large, global corporations are holding unprecedented levels of cash and equivalents on their balance sheets – combined, the S&P 500 companies have nearly $800 billion. The top 10 technology companies, including Cisco, Microsoft, Google, and Apple, are holding $210 billion themselves, while PE firms are sitting on a capital overhang of $500 billion. This high level of liquidity creates a formidable group of buyers that are looking to put capital to work and grow through acquisitions. In addition, lenders are expected to be more cooperative in helping PE firms finance and leverage their deals.
- Ongoing Divestiture of Non-Core Assets – Large, global corporations have not finished divesting media assets that don’t fit within their core markets/sectors and will continue to tap the M&A market for buyers of these assets.
- Private Companies Coming to Market – Privately held companies, whose owners – whether entrepreneurs, venture capital groups or PE firms – have been sitting on the sidelines should come to market, as valuations improve and the buyer pool increases in line with a stronger economy. The expected increase in capital gains taxes in January 2011 is adding additional impetus to sell in 2010, as are expected changes in the taxation of carried interests for private equity and hedge fund managers.
JEGI has a growing pipeline of new clients and expects to remain very active on the M&A front in 2010. See the entire report HERE.
About JEGI
The Jordan, Edmiston Group, Inc. (JEGI) of New York, NY is the leading
provider of independent investment banking services for media, information,
marketing services and related technologies. Since being founded
in 1987, JEGI has completed nearly 500 high-profile M&A transactions
for global and emerging companies; entrepreneurial owners; and private
equity and venture capital funds. For more information, visit www.jegi.com.
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