Online and mobile mergers and acquisition deals increased by 7 percent in the first half of 2013, but value decreased 29 percent, from $32.54 billion in the second half of 2012 to $23.16 billion.
The median revenue moved from 2.3x to 2.1x, while the median EBITDA multiple increased from 10.0x to 16.0x, according to the Berkery Noyes mid-market investment bank, for the first half 2013 mergers and acquisitions trend report
Yahoo!, with 13 transactions, was the industry’s most active acquirer in first half 2013. Aside from its $1.10 billion acquisition of Tumblr, Yahoo! has mainly focused on small, mobile-based transactions this year.
Tumblr was Yahoo!’s largest deal in the Online & Mobile Industry since 2003, when it acquired search and internet advertising company Overture Services for $1.63 billion.
SaaS & Cloud was the most active market segment and underwent a 15 percent increase in volume, totaling 291 transactions year-to-date. M&A activity in the Communications segment improved 22 percent since second half 2012, making it the sector with the largest half-to-half year increase. One notable Communications transaction in first half 2013 was Dropbox’s acquisition of mobile email application Mailbox.
Mobile a strong driver
In addition, acquirers are looking to add mobile solutions that aggregate relevant content in relation to individual users, as news is shared in real-time.
There were several deals over the past six months that focused on news summary and content sharing, such as LinkedIn’s acquisition of Pulse for $90 million, Google’s acquisition of Wavii for $30 million, and Yahoo!’s acquisition of Summly for $30 million.
“Mobile continues to be a strong driver of M&A activity in the information marketplace,” stated Mary Jo Zandy, Managing Director at Berkery Noyes. “Content delivery methods are evolving, and acquirers in general are showing more interest in semantic technologies that improve the end-user experience.”