JEGI Press Release

JEGI Media and Information Year-End 2010 M&A Overview

Strong Uptick in M&A Led by Online Media, Marketing Services, and Mobile Sectors
New York, NY January 3, 2011 – M&A activity for the media, information, marketing services and
technology sectors rebounded strongly in 2010, with 845 transactions at a total value of $43.3 billion, as
tracked by The Jordan, Edmiston Group, Inc. (JEGI) (www.jegi.com), the leading independent investment
bank specializing in mergers, acquisitions and divestitures across these core markets.

Both the number and value of M&A

transactions in 2010 increased 39% over
845
2009 levels, led by online media,
marketing services, and mobile media.
These sectors accounted for 73% of deal
volume and more than half of overall
deal value. The average deal size for
these sectors was $38 million vs. $87 $43.3
million for the balance of the sectors
covered by JEGI, as these emerging
companies have been trading earlier in
their life cycles.

Corporate “strategic” buyers led the

surge in M&A, as acquirers on 86% of transactions for the year. Strategics have unprecedented levels of
cash on their balance sheets, with the S&P 1500 holding more than $1 trillion and growing in liquid assets.
Looking ahead, JEGI sees continued strong recovery in the M&A cycle, tempered by lingering concerns of
the economy and tighter than normal credit availability to support M&A. However, “markets climb a wall
of worry”, as the old Wall Street adage goes, to support a sustainable and vigorous deal environment.
Smaller Deals Abound
2010 saw a rising tide of smaller M&A transactions, with only six media and information deals valued over
$1 billion. The largest was the acquisition of Interactive Data Corporation, a provider of financial data and
analytics, by Silver Lake Partners and Warburg Pincus for $3.2 billion. The other $1+ billion transactions
included:
 Madison Dearborn Partners’ acquisition of TransUnion, a provider of credit and information
management, for an estimated $2.5 billion;
 Apax Partners’ acquisition of Advantage Sales and Marketing, a sales and marketing agency for
consumer goods, from J.W. Childs and BAML Capital Partners for $1.8 billion;

Adam Gross, Chief Marketing Officer

212-754-0710; adamg@jegi.com
www.jegi.com
JEGI Press Release

 MSCI’s acquisition of RiskMetrics Group, a provider of risk management and corporate governance
products for the financial markets, for $1.6 billion;
 Advent International’s acquisition of SkillSoft, a provider of on-demand e-learning solutions, for
$1.1 billion; and
 The acquisition of CanWest, a Canadian newspaper group, by a group of creditors for $1.1 billion.
In Q4-2010, the largest transactions after the Apax deal highlighted above were:
 Oracle’s acquisition of Art Technology Group, a provider of e-commerce solutions, for $950 million;
 TPG Capital’s acquisition of MacDonald, Dettwiler & Associates’ property data unit for $850
million;
 Amazon’s acquisition of Quidsi, an e-commerce company that operates Diapers.com, for $540
million;
 Teradata’s acquisition of Aprimo, a marketing automation software company, for $525 million;
 DeNA’s acquisition of ngcomo, a game developer, for $400 million; and
 News Corporation’s acquisition of Wireless Generation, an education technology company, for $360
million.
Looking Forward
JEGI sees an accelerating outlook for M&A in 2011, as corporations look to redeploy liquidity and grow via
acquisitions. Equally important, private equity firms have unprecedented amounts of uninvested capital –
over $400 billion and growing – and the availability of debt is improving but still patchy.
Recent reports indicate a return of confidence in the market. The Interactive Advertising Bureau’s Q3-2010
report showed U.S. Internet advertising revenues hit $6.4 billion in the third quarter of 2010, the highest
quarterly result ever and a 17% increase from the same period in 2009. eMarketer predicts a 10.5% increase
in U.S. online ad spending in 2011, followed by double-digit growth through 2014, when spending is
expected to reach $40.5 billion. As well, the Wells Fargo/Gallup Small Business Index, a measure of small-
business owner perceptions of their operating environments, surged 24 points in November 2010, a sharp
improvement from the previous report in July 2010 and the most positive levels since April 2009.
In the middle-market, JEGI expects continued strong activity across the firm’s core sectors, as corporations
look to acquire transformative business models to position their companies for growth. High growth
interactive, marketing services and mobile assets with innovative business models will continue to be in
demand. In parallel, many vintage private equity-owned companies that were acquired during the major
buying cycle of the early and mid 2000’s are expected to come to market over the next year.
The two largest clouds over the M&A market are the ongoing hesitancy by the banks to lend, especially on
smaller transactions (those involving companies with less than $20 million EBITDA), and lingering
uncertainty about the economy and its growth projections over the next six to twelve months. However, a
recovering but still cautious and prudent M&A environment can sustain its vigor over a longer period.

Adam Gross, Chief Marketing Officer

212-754-0710; adamg@jegi.com
www.jegi.com
JEGI Press Release

JEGI Activity Continues

JEGI recently announced five more noteworthy transactions:
 The sale of I-Behavior, a provider of consumer and business transaction data, to KBM Group, a unit
of WPP;
 The sale of Blue State Digital, a full-service digital agency, to WPP;
 The sale of All Island Media, a shopper publication group on Long Island, to Wafra Partners;
 The sale of Highline Financial, a financial information and analytics provider, to Thomson Reuters;
and
 The sale of Deep Focus, a full-service interactive marketing agency, to Engine Group.
JEGI has a robust and active pipeline for 2011.

Media, Information, Marketing Services & Related Technology M&A Activity

2010 2009 % Change
January - December January - December
No. of Value No. of Value No. of
Industry Sector Value
Deals (millions) Deals (millions) Deals

B2B Online Media & Technology 59 $2,508 53 $1,332 11% 88%

B2C Online Media & Technology 230 $8,466 139 $7,031 65% 20%

Business-to-Business Media 37 $534 20 $3,556 85% (85%)

Consumer Magazines 26 $214 41 $213 (37%) 0%

Database & Information Services 70 $12,373 47 $7,108 49% 74%

Education Information, Technology & Training 59 $4,947 68 $3,807 (13%) 30%

Exhibitions & Conferences 23 $129 35 $166 (34%) (22%)

Marketing & Interactive Services 254 $11,275 153 $6,365 66% 77%

Mobile Media & Technology 77 $1,429 36 $1,414 114% 1%

Newspaper Publishing 10 $1,457 14 $199 (29%) nm

Total 845 $43,333 606 $31,191 39% 39%

Source: JEGI Transaction Database

M&A Highlights
• The b2b online media and technology sector saw an 11% increase in the number of M&A transactions
announced in 2010 over 2009 levels and a near doubling of transaction value, to $2.5 billion. The only
notable Q4 transaction was Oracle’s acquisition of Art Technology Group, an e-commerce solutions
provider, for $950 million. The second largest largest b2b online media transaction for the year was
Google’s announced acquisition of ITA Software, a travel search and booking technology provider, for
$700 million, although this transaction remains subject to intensive antitrust review.

Adam Gross, Chief Marketing Officer

212-754-0710; adamg@jegi.com
www.jegi.com
JEGI Press Release

• The b2c online media and technology sector was the second most active in 2010, with 230 transactions
at a total value of $8.5 billion. M&A transaction volume and value increased 65% and 20%,
respectively, over 2009. In Q4, notable transactions included Amazon’s acquisition of Quidsi
(Diapers.com) and the acquisition of ngmoco by DeNA; eBay’s acquisition of brands4friends.com, the
largest major European fashion club, for $200 million; Google’s acquisition of Slide, which enables
engagement through apps and communities, for $182 million; Amazon’s acquisition of LivingSocial, a
site that connects customers with daily deals, for $175 million; the acquisition of RetailMeNot, an online
coupon site, for $160 million by Whale Shark Media, backed by Austin Ventures; and Providence
Equity Partners’ acquisition of ZeniMax Media, a publisher of interactive entertainment, for $150
million. For the year, the largest b2c online media deals were Disney’s acquisition of Playdom, a social
games developer, for $763 million; and Hellman & Friedman’s acquisition of Internet Brands, a group
of web sites covering vertical markets, for $640 million.
• M&A activity for the business-to-business media sector increased 85% in 2010, but deal value fell
precipitously for the year, with only one transaction of size: United Business Media’s acquisition of
Canon Communications, a data, information, and events provider for the medical design, design
engineering, pharmaceutical and manufacturing segments, for $287 million. In Q4, notable deals
included two divestitures by Lebhar-Friedman – the sale of Nation's Restaurant News to Penton Media;
and the sale of units of Dowden Health Media, including Dowden Custom Media, the Medical
Communications Group, and e-Crossings, to High Road Capital Partners.
• The consumer magazine sector continues to be quiet from an M&A perspective, with only 26 deals
announced for the year at a total value of $214 million, for an average deal size of $8 million. In Q4, the
two notable deals were Wafra Partners’ acquisition of All Island Media, a shopper publication group
on Long Island; and Oakley Capital Private Equity’s acquisition of 50% of Time Out, a publisher of city-
focused entertainment and event magazines, for $31.5 million. For the year, there were no consumer
magazine transactions with a value of more than $100 million.
• The database and information services sector continues to be active in M&A, with 70 transactions at a
total value of $12.4 billion in 2010, representing respective increases of 49% and 74% over 2009 levels.
The average deal size for this sector was by far the largest of all sectors covered by JEGI, at $177 million
for the year. In Q4, notable transactions included TPG Capital’s acquisition of MacDonald, Dettwiler &
Associates’ property data unit for $850 million; Equifax’s acquisition of IXI Corporation, a provider of
consumer wealth and asset data, for $128 million; and the acquisition of Oil Price Information Service
(OPIS) from United Communications Group by the Platts unit of McGraw-Hill. The largest
transactions of the year took place in this sector, including the Silver Lake Partners and Warburg
Pincus acquisition of Interactive Data Corporation for $3.2 billion; and Madison Dearborn Partner’s
acquisition of TransUnion for an estimated $2.5 billion.
• The education information, technology and training sector saw 59 transactions announced at a total
value of $4.9 billion in 2010. Transaction value increased 30% over 2009 levels, while the number of
deals declined 13% for the year. In Q4, notable transactions included News Corporation’s acquisition

Adam Gross, Chief Marketing Officer

212-754-0710; adamg@jegi.com
www.jegi.com
JEGI Press Release

of Wireless Generation, an education technology company, for $360 million; and Moody's acquisition of
CSI Global Education, a provider of financial learning, credentials and certification, for $151 million.
For the year, the largest deals in this sector included Advent International’s acquisition of SkillSoft for
$1.1 billion; Providence Equity Partners’ acquisition of Study Group, a provider of educational
programs, for $570 million; Pearson’s acquisition of Sistema Educacional Brasileiro, a leading Brazilian
education company; and BC Partners’ acquisition of ATI Career Training Centers from Riverside
Company for $500 million.
• The exhibitions and conferences sector saw 23 transactions at a total value of $129 million in 2010,
with few large transactions. United Business Media continued to be active on the international front,
with two more acquisitions in Q4 – Publishing Expo, the UK-based exhibition for digital and print
publishing solutions; and a 65% stake in Rotaforte International Trade Fairs & Media, which produces
jewelry-based exhibitions in Turkey. Additionally, in Q4, Reed Elsevier acquired the China Golf Show,
a leading golf equipment and accessories exhibition in China.
• The marketing and interactive services sector was the most active in 2010, with 254 transactions at a
total value of $11.3 billion. Deal activity and value increased 66% and 77%, respectively, over 2009.
Notable Q4 announced transactions included Apax Partner’s acquisition of Advantage Sales and
Marketing, a sales and marketing agency for consumer goods, from J.W. Childs and BAML Capital
Partners for $1.8 billion; Teradata’s acquisition of Aprimo, a marketing automation software company,
for $525 million; Court Square Capital’s acquisition of MailSouth, a provider of shared mail advertising
services, from New Mountain Capital; and Equity Group Investments’ acquisition of Rewards
Network, a dining reward company, for $126 million. For the year, other large deals included Hearst
Corporation’s acquisition of iCrossing, the global interactive marketing services group (JEGI
represented Hearst in this transaction); IBM’s acquisition of Unica, an on-demand marketing solutions
provider, for $480 million; Automatic Data Processing’s acquisition of Cobalt, a digital marketing
service agency, for $400 million; and Aegis Group’s acquisition of Mitchell Communications Group, an
independent communications company, for $363 million.
• Mobile media and technology was the fastest growing sector in 2010 with 77 announced transactions,
a 114% increase over 2009 levels. Deal value was flat in 2010 vs. 2009 at $1.4 billion, with no $100+
million deals in 2010 and an average deal size of $19 million, significantly lower than the average deal
size for all sectors of $51 million for the year. The deals in this sector tend to be for earlier stage, high-
growth companies, by corporations that are seeking growth in new markets and new product offerings.
The leading interactive media and technology companies have been actively acquiring mobile assets,
including Akamai, AOL, Apple, Disney, eBay, Google, Groupon, Motorola, Nokia, Qualcomm,
Research in Motion, Twitter, and Yahoo!
• The newspaper publishing sector has seen a significant decline in M&A activity over the past few
years, as ad dollars continue to shift from print to digital media outlets and paid subscriptions decline.
As a result, this sector saw only 10 deals in 2010 at a total value of $1.5 billion. Deal value was spiked

Adam Gross, Chief Marketing Officer

212-754-0710; adamg@jegi.com
www.jegi.com
JEGI Press Release

by the only significant deal of the year – the $1.1 billion acquisition of CanWest Limited Partners, a
Canadian newspaper group, by a group of creditors.
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
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.
###

Adam Gross, Chief Marketing Officer

212-754-0710; adamg@jegi.com
www.jegi.com