Tmt cf deal_tracker_march_2015

Monthly Industry Deal Tracker
Technology, Media &
Telecommunications
Overview of active transactions sourced from public sources only
March 2015

Overview 3
Methodology 4
Technology 5
Media 31
Telecommunications 50
Contents
2

Overview
3
The deal tracker presents a summary of the observed M&A deals in the
Technology, Media & Telecommunications Industry by Sector and
Region/Country for the month of February 2015 based on reports or rumours
identified in the public domain.
A number of new opportunities have entered the tracker this month, including:
• Verizon and AT&T are both planning asset sales. The Verizon sales, which
would involve a package of cellphone towers as well as wireline and other
operations, are potentially worth more than US$15.0B, while AT&T’s sale of
data centers could be worth slightly more than US$2.0B.
• PTC Inc is being viewed as a potential takeover target for major telecom
operators, industrial groups and its larger competitors seeking exposure to
the industrial Internet-of-Things (IoT) market.
• General Dynamics is considering the sale of cyber security business Fidelis
which has approximately US$200.0M in revenue and is likely to be targeted
by private equity firms.
• Twenty-First Century Fox has been in initial talks over a potential purchase
of Maryland-based television network firm Discovery Communications which
would give rise to a US$100.0B conglomerate in the entertainment industry.
Of the opportunities in the previous months, following are key
announced/completed/cancelled deals:
• Insight Venture Partners, a private equity firm, acquired E2open Inc. for
US$273.0M. The deal is expected to close before the first quarter of fiscal
2016.
• Lattice Semiconductor Corporation signed a definitive agreement to acquire
Silicon Image in a transaction valued at approximately US$600.0M.
* Western Europe does not include Germany
Deals by Sector
Deals by Country/ Region

Methodology
• This document has been prepared using
publically available information extracted
from Mergermarket and news articles. This
deal tracker contains a summary of the
market intelligence that may be of interest
to investors in the Technology, Media and
Telecommunications (TMT) industry.
• The information contained herein should not
be considered a complete population of
ongoing and pending transactions in the
TMT industry, nor should these articles be
considered as company abc opinion.
• Throughout the report we tracked the
updates as follows:
 blue text: all changes from the previous
Deal Tracker (updates, new
opportunities)
 -crossed out: removed opportunities
(announced, completed, or cancelled)
 (brackets): details of deal completion
• Opportunities that have not seen any
developments/updates in the last 3 months
have been removed from the tracker.
However, opportunities that state a definite
long-term period for action have not been
excluded.
4
Europe Other
CountriesNorthern Europe Southern Europe Eastern Europe Western Europe
Aland Islands Albania Belarus Austria Brazil
Channel Islands Andorra Bulgaria Belgium Canada
Denmark Bosnia and Herzegovina Czech Republic France China
Estonia Croatia Hungary Germany Japan
Faeroe Islands Gibraltar Moldova Liechtenstein Mexico
Finland Greece Poland Luxembourg South Korea
Guernsey Holy See Romania Monaco United States
Iceland Italy Russia Netherlands
Ireland Macedonia Slovakia Switzerland
Isle of Man Malta Ukraine
Jersey Montenegro
Latvia Portugal
Lithuania San Marino
Norway Serbia
Sark Slovenia
Svalbard & Jan Mayen
Islands
Spain
Sweden Turkey
United Kingdom
List of Covered Countries

Technology
Market Opportunities
5
Sub-Sector Country Description
Technology Services Norway • 16 December 2014, Norwegian IT company Admincontrol's owners want to sell more than 50% of the company to a new
shareholder in order to fuel its international growth ambitions, and the company is likely to attract interest from both Nordic and
U.S. investors. Admincontrol’s main shareholders are SaasGarden AS (55.91%), owned by the company's founders, Stale
Lovbukten and Ivar Kroghrud, and BME Group (10.47%), owned by CEO Christian Petersen. ABG Sundal Collier has been
mandated as sell-side financial adviser, and first-round bids are due towards the end of January. Admincontrol is a SaaS-based
enterprise software provider focused on corporate governance portals and was founded in 2005. Its 2013 turnover was
NOK38.0M (€4.0M), and the company is targeting revenues of NOK56.0M in 2014.
• 22 September 2014, Evry, the Norwegian IT group, is looking to sell three subsidiaries (Eye-Share, Information Services, and
Okonomitjenester) which are no longer classed as core operations of the group. 13 October 2014, Norwegian IT Group Evry’s
first round bidders included Tieto, a Helsinki, Finland-based IT firm and UK-based PE firm Apax. Second-round bids are
reportedly due in the middle of November, 2014. 9 December 2014, Evry, one of the largest IT players in the Nordics, is
heading into completely private ownership, with investment house Apax tabling a bid worth NOK4.3B (€483.0M).
Sweden • 13 January 2015, Swedish IT companies Tradedoubler, IAR Systems, and IFS could be possible candidates for takeovers.
Tradedoubler’s major PE shareholder, Monterro, may well manage to take over the entire company as the other shareholders
don’t seem to have the same belief in Tradedouble’s future. IAR is a clear candidate for takeover and IFS is the last remaining
business systems company on the Stockholm stock exchange and has developed well over the last few years. IFS’ major
shareholder Gustaf Douglas may be interested in selling it for the right price.
United
Kingdom
• 1 December 2014, Sophos is in the early stages of preparing for a dual-track sale process. The UK-based software-security
and data-protection company is hoping to float in London next year but is also considering listing in New York or selling to a
private-equity house. A flotation could value Sophos at £1.0B (US$1.6B). A number of PE firms have recently discussed the
acquisition of Sophos with advisers. Sophos is poised to engage an independent adviser to hire investment banks which will
work on an IPO during the first half of next year. Such an advisory appointment might encourage interest from potential bidders.
• 13 November 2014, Carlyle is looking to purchase assets being put up for sale by Serco Group Plc. Serco is in the process of
divesting several non-core assets. The company is preparing to launch a £550.0M rights offering to shore up its balance sheet.
The company is planning to sell The Listening Company. The company is also divesting its environmental services and leisure
units, having mandated Rothschild and Livingstone Partners to oversee the processes. Serco has also hired Citi for its auction
of Intelenet, a business it acquired in 2011 for £385.0M.

Technology
6
Technology Services United
Kingdom
• 25 September 2014, Small and mid-cap companies in the cloud and hosting space such as Redcentric and Alternative
Networks are expected to continue to attract PE bidders such as Cinven and Oak Hill Capital Partners. Cinven’s subsidiary
Host Europe had expressed interest in Iomart. However, it has decided against making an offer and is now likely to focus on
achieving greater economies of scale by purchasing companies such as Alternative Networks, which have their own data
centres and operate both in the cloud and hosting markets. Cinven’s pursuit of Iomart indicates that it wants to acquire a pure-
play data hosting company. Cinven may also be interested in American firm Coresite Exact Holding, which has been
approached by several PE firms. Convergence between traditional telecom companies and pure data storage and data centre
providers with the aim of becoming a ‘one-stop shop’ for enterprise software provision could result in Alternative as well as
Redcentric, a managed services company making a good fit for Oak Hill, which is looking at hosting and managed services
business. Another player in this sector, Daisy Group is also currently in talks with a consortium of prospective bidders made up
of its CEO Matthew Riley and PE firms Toscafund and Penta Capital. Six Degrees, which is owned by Toscafund and Penta, is
likely to either be sold to Cinven or another PE firm, or taken public. 9 December 2014, AIM-listed communications and
technology outfit Daisy Group confirmed that the previously agreed 185 pence-per-share bid from a consortium led by CEO
Matthew Riley has been declared unconditional. The offer from Riley, Penta Capital, and long-term investor Tosca Fund, which
values Daisy at near £500.0M, was agreed in October.
Russia • 20 October 2014, Akamai Technologies is evaluating options to grow its business in Russia via acquisition. The company
already has cooperation arrangements with some of the country’s largest telecom players such as Moscow-based Mobile
TeleSystems and TransTeleCom (TTK). There are several innovative firms such as Aladdin R.D., Infotecs, and InfoWatch, in
the Russian information technology security sector that could be of serious interest to foreign strategic sector players, such as
Akamai. These firms and other similar peers in this space have announced ambitious expansion plans for local and foreign
markets, and consequently, might be very interested in an attractive deal or partnership offers from strategic players. Aladdin
generates about US$30.0M in average annual revenue and Infotecs generates an average annual revenue of over US$60.0M.
Infowatch Group’s sales turnover in 2013 totalled RUB600.0M (US$20.0M), while the business plans for 2014 envisage
revenue of about RUB800.0M to RUB900.0M (US$23.0M to US$25.0M). Akamai would be interested in local Russian targets
with really unique technologies, products, solutions or expertise that would enable the group to address country-specific
challenges or solve business needs for its clients. The company does not necessarily need M&A to boost its market share, but
could seek cooperation agreements to have access to important technology and infrastructure. Akamai is aiming to be a
US$5.0M revenue business by 2020, representing 18% CAGR.

Technology
7
Technology Services France • 12 January 2015, Listed French telecom company Orange is understood to be in advanced talks to increase its stake of 44%
in Cloudwatt, a French provider of cloud services. Orange is expected to acquire the 33% and 22% stake controlled by Caisse
des Depots et Consignations and Thales respectively. The concerned parties are currently conducting due diligence and the
deal could be finalised before the end of March, 2015.
• 17 December 2014, Exclusive Networks, a French distributor of B2B IT security software, is understood to have been put up
for sale by PE owner Omnes Capital. Leonardo & Co. has been mandated to handle the sale process. Exclusive Networks,
owned by Omnes Capital, Socadif, and EdRIP, expects revenues of €600.0M in 2014.
Netherlands • 27 January 2015, Several European and U.S. companies are reportedly interested in buying Ordina, a Netherlands-based
listed provider of IT and management consultancy services. The European parties are mainly interested in the strategic
direction of the company, while the U.S. bidders are mostly private equities.
• 23 January 2015, Private Dutch IT services provider, InterNed Services Group, is expected to hit the market in 1H15. Harris
Williams is advising. The sell-side is working off EBITDA of above €7.0M. InterNed seeks fresh backing to step up consolidation
of the local webhosting industry through buy-and-build. InterNed continues to buy up sector players. InterNed is expected to
tout its large Dutch SME clientele and marketing heft as selling points. Robust advertising has helped InterNed build probably
the biggest, widest recognition in terms of brand name in Dutch webhosting, staving off commoditisation and countering
customer churn. A tie-up with IT-Ernity would give InterNed access to more services and larger clients. Absorbing InterNed, in
return, would bulk up IT-Ernity’s customer base. Vitruvian is another logical PE suitor. Vitruvian has backed ASP4All, another
M&A-hungry competitor to InterNed, since mid-2014. In exchange for customers, InterNed would benefit from integration into
ASP4All’s wider service offering. Local sponsors were also tipped to move for InterNed. Oakley’s Internet know-how makes it
another potential PE suitor. InterNed could also pique the interest of HG Capital.
China • 22 January 2015, Fosun International’s venture capital arm Kinzon Capital, is in the process of raising US$250.0M for
technology start-ups, healthcare, and online payment investment. The additional fundraising is set to close subscription from
external investors by the end of this year. It has received a strong interest from several limited partners from overseas. The
fund has a minimum commitment of US$1.0M and an investment period of four to five years. Management fee will be around
2% with the hurdle rate at 8%. Kinzon Capital seeks investments in the areas of mobile games, online payment, and mobile
healthcare, primarily in China. It wants to invest early in the lives of technology companies, and eventually exit to the likes of
Baidu, Tencent, and Alibaba. It will also scout for healthcare start-ups which could fit under Fosun’s healthcare umbrella.

Technology
8
Technology Services China • 12 November 2014, Enjoyor, a listed integrated intelligent systems company, plans to conclude the acquisition of an intelligent
transportation services (ITS) company within 12 months. The company has been reviewing potential domestic targets for some
time and is working with its advisors. The company could spend around CNY200.0M. The acquisitions are part of the
company’s plan to strengthen its ITS division, in which it sees good growth potential.
• 25 October 2014, Hewlett-Packard, the Palo Alto, California-based computer services giant, is reportedly seeking bids for its
Chinese corporate networking unit. The Hangzhou-based H3C Technologies Co. could once again be locally controlled. Local
PE firms have begun being sounded out, and a sale to PE is expected, although the process is still in its initial stages. At least
a 51% stake is expected to be up for sale, with a US$5.0B price tag possible in the event of a full sale. 10 February 2015,
China Reform Holdings (China Guoxin Holdings) is expected to buy 51% stake in HP’s networking business H3C. Other buyers
interested in H3C include state-owned China Electronics Corporation and domestic private equity firm CDH.
• 14 October 2014, Beijing Watertek Information Technology [Xuan Ji Xin Xi], the listed China-based company that provides
embedded system testing products and technical services, is looking to make more domestic acquisitions by 1Q15. Watertek is
planning to acquire three companies that are under a Beijing-based investment firm’s portfolio. The three target companies are
engaged in software development and have a combined net profit of CNY50.0M (US$8.0M). Watertek is reportedly facing
competition from two domestic rivals and is still negotiating with the vendor. The company is also evaluating other target
options in case it cannot secure the buys. The company is currently on an aggressive growth mode and is actively pursuing
buying opportunities. Funding would mainly come from its own funds and it also can turn to other financing options, including a
private placement. Ping An Securities and Dacheng Law Offices are among its current advisors.
• 1 October 2014, Beijing Unistrong Science and Technology [He Zhong Si Zhuang], the listed China-based company that
provides satellite navigation and positioning services, plans to make more domestic acquisitions. The company is currently in
talks with a domestic investment firm to acquire three companies under its portfolio. The three target companies are engaged in
software development and have a combined net profit of CNY40.0M (US$6.4M). The acquisitions are part of the company’s
aggressive plan to accelerate its growth. Negotiations started early this year and Unistrong hopes to conclude a sale by 1Q15.
Unistrong is likely to hire the advisors from its previous buys for the matter. The company announced on 16 September, 2014
that it has inked framework agreements to buy Changchun Tiancheng Technology and Topscientific Systems. The two targets
are valued at CNY157.0M and CNY160.0M, respectively. Tianfeng Securities acts as independent financial advisor for the
matter. Zhong Lun Law Firm is its legal advisor with Beijing Xinghua CPA as accountant.

Technology
9
Technology Services China • 5 September 2014, 99bill [Kuai Qian], a Shanghai-based privately held independent third-party payment service provider, is
possibly looking to acquire big data analytics companies to expand the business it has recently forayed into. Financial advisors
with suitable targets in mind would be entertained. The potential targets do not have to be profit-making. The acquisition
approach planned now is aimed at achieving more than just scaling up 99bill’s business in its prime sector. 22 November
2014, 99Bill, a payment collection firm, has been acquired by Baidu, China’s search engine. The move represents Baidu’s
determination in stepping up its foray into the online financial market. The value of the acquisition is approximately US$326.0M
which will contribute to the efforts of Baidu in narrowing its lag behind the other market players, Alibaba and Tencent, in online
finance. 26 December 2014, Wanda is buying a controlling stake in e-payments provider 99Bill for CNY2.0B (US$320.0M). The
stake is probably in the 30%-50% range, and would value 99Bill at as much as US$1.0B. Online search giant Baidu was
reportedly in talks to buy this stake a month ago, but it appears that Wanda has moved in since then and became the preferred
suitor.
United States • 27 February 2015, Science Applications International (SAIC) is in discussions to acquire Leonard Green & Partners’ portfolio
company Scitor. McLean, Viriginia-based SAIC, a provider of technology integration services to the US government and
commercial markets, is working with Citigroup, while Sagent Advisors is working with Scitor. The transaction would be
structured using predominantly, if not entirely, stock. Virginia-based Scitor’s reported EBITDA is valued at US$60.0M.
• 26 February 2015, PTC Inc is being viewed as a potential takeover target for major telecom operators, industrial groups and its
larger competitors seeking exposure to the industrial Internet-of-Things (IoT) market. Having merged its legacy business with
IoT platforms, PTC is regarded as a market leader and an attractive takeover candidate in the space. The company's IoT
offering enhances its core product lifecycle management (PLM) and service lifecycle management (SLM) software. It seeks to
leverage connected devices and a potential takeover by a competitor or industry player would enable the company to
accelerate the establishment of a larger suite of industrial products aligned with its IoT- enabled services. Having developed its
own IoT platform named Predix, GE has been looking for an external IoT entity to acquire or partner with and could be a
potential suitor for PTC. The company's larger PLM competitors such as SAP, IBM and Oracle are also possible buyers.
• 6 February 2015, Blue Coat Systems, a network security company, has been put up for sale by private equity owner Thoma
Bravo. The company is expected to fetch US$2.5B, which is 11x its EBITDA of US$220.0M.

Technology
10
Technology Services United States • 28 January 2015, Box could draw buyout interest from a number of large technology companies given their lack of a cloud-
based storage product amid intensifying brand building in the space among established competitors. The company has
received a lot of interest from large technology players looking to add to their cloud business. Cisco Systems, Oracle, and
Hewlett-Packard are all believed to have shown interest in Box in the past. Cisco had discussion with the company within the
last six to 12 months. Cisco eyed Box specifically to help reinvent its WebEx offerings. Box reported in its most recent S-1 filing
revenue of US$154.0M for the nine months ending on 31 October, 2014.
• 27 January 2015, Epiq Systems, the Kansas City, Kansas-based provider of technology services for law firms, collected first-
round bids from prospective suitors. Epiq’s board was expected to meet to consider the proposals. It is unclear if potential
buyers met the company’s price expectations. The Carlyle Group and Advent International are among the financial sponsors
that bid. Epiq has been exploring a minority investment as an alternative to a buyout. The company trades at around 9x
adjusted LTM EBITDA of around US$100.0M for the period ending 30 September. Leverage for a buyout is available at around
5x EBITDA. Epiq has hired Credit Suisse to consider a range of alternatives, including acquisitions, divestitures, going private
or a recapitalization. It subsequently reached a settlement with one of the activists targeting the firm, St. Denis J. Villere &
Company.
• 15 January 2015, Stratose, a private healthcare cost containment company, has hired Piper Jaffray to explore a sale. The
Atlanta, Georgia-based company generates approximately US$20.0M in EBITDA. The process kicked off in December, 2014
and is still at the early stages. Stratose would appeal to PE firms, in particular to those looking to enter the healthcare
information technology space but without a lot of background in more traditional IT.
• 7 January 2015, Psychological Services Inc., a portfolio company of ABRY Partners, is working on a sale process with
SunTrust. The process for the Burbank, California-based provider of testing and assessment solutions began in late summer to
early fall but has gone quiet recently. Psychological Services generates US$13.0M to US$14.0M in EBITDA. Psychological
Services is similar to Pearson Vue, which might prevent media company and educational publisher Pearson from bidding on
the asset because of potential antitrust objections. The transaction will be valued at US$150.0M to US$170.0M, implying an
EBITDA multiple of 12x to 14x. However, speculations exist that the business would not fetch more than 8x to 9x EBITDA.
Prometric, a subsidiary of Educational Testing Service, could be a logical bidder, along with PE groups.
• 6 January 2015, SRA International Inc. of Fairfax, Virginia, may be sold or go public in 2015. The technology solutions and
professional services company could be due for a takeover by a PE firm or contractor. While an IPO is also a possibility, SRA’s
recent debt struggles make an acquisition seem more likely. Moody’s Investors Service downgraded SRA's debt roughly a year
ago to B3 from B2, with a stable rating outlook, reflecting year-over-year revenue and backlog declines. FY13 revenue was
US$1.5B.

Technology
11
Technology Services United States • 13 November 2014, Suitors of Riverbed Technology are expected to submit initial bids for the company. Vista Equity, Thoma
Bravo, and Bain Capital are among the financial sponsors that may be considering bidding. Financing is available at around 7x
EBITDA. (15 December 2014, Networking company Riverbed Technology has agreed to be acquired for US$3.6B after being
unable to shake a challenge from an activist investor. Riverbed announced that it will accept a bid of US$21.0 a share from PE
firm Thoma Bravo, which will be joined by a Canadian teachers' pension group.)
• 5 November 2014, GT Nexus owner Warburg Pincus has retained Morgan Stanley to explore a potential sale or IPO. The
cloud based supply-chain management company based in Oakland, California received a bid from SAP valuing it around
US$800.0M. SAP has since moved on, acquiring Concur Technologies after the approach.
• 22 October 2014, Corepoint Health, the healthcare information technology company, has reportedly mandated Houlihan Lokey
for a sale process. The Frisco, Texas-based company generates approximately US$8.0M in EBITDA. Corepoint, which
provides hospital workflow management software, would appeal to PE buyers as well as strategic players. The company could
transact for a multiple of 12x to 16x EBITDA. (18 February 2015, Audax Group has made a significant investment in Corepoint
Health. Houlihan Lokey advised Corepoint. Ropes & Gray LLP served as counsel to Audax Group. CapitalSource and Silicon
Valley Bank provided financing for the transaction.)
• 22 October 2014, Strata Decision Technology, the private healthcare information technology (IT) company, has reportedly
mandated Triple Tree for a sale process. The Chicago, Illinois-based company generates approximately US$10.0M of EBITDA.
Strata Decision would appeal to PE buyers, who have been seeking companies that help cut costs in healthcare. The
company’s technology helps make hospital operations more efficient, and this focus would make it an attractive target for PE
investment. Strata is likely to garner a higher multiple than the 10x to 14x EBITDA that most healthcare IT companies
command. (23 January 2015, Veronis Suhler Stevenson has sold Strata Decision Technology to Roper Industries. No financial
terms were disclosed. Triple Tree provided financial advice to VSS and Strata Decision Technology in the transaction.)
• 18 October 2014, SolPass, a Denver, Colorado-based cyber security company, is looking to strike partnerships over the next
three months. The partnerships would help SolPass implement its technology and expand its sales channel. The company is
looking for partnerships with companies in industries such as financial services, government, entertainment, retail, health,
transportation and energy. IBM, Siemens, Northrop Grumman, and ManTech International are seen as potential partners.
SolPass aims to be well established in the cyber market by the end of 2015. SolPass is primarily self-funded and is in the
process of trying to attract limited outside investment. If SolPass does not hire its own technical staff the company would
consider acquisitions in the IT services space. Companies with a size range of US$15.0M to US$20.0M are SolPass’ target for
deals.

Technology
12
Technology Services United States • 30 September 2014, Computer Sciences Corp. (CSC), a technology consultant for governments and companies, has
contacted private-equity firms including Blackstone Group LP (BX) and Bain Capital LLC to gauge their interest in a leveraged
buyout. The talks are at an early stage and may not result in a deal. 2 October 2014, Indian information technology companies,
including Wipro and HCL Technologies, could bid for Computer Science Corp., if the U.S.-based IT company splits its public
sector and commercial operations before putting itself up for sale. 6 November 2014, Computer Sciences Corporation is
seeking acquisitions. CSC is consistent with strategy to pursue bolt-on acquisitions that are in-line with company’s goal to be
leader in next-generation IT services and offerings. 18 January 2015, Computer Sciences has contacted Blackstone, Bain, and
other PE firms about an LBO. Discussions are said to be at an early stage. 21 February 2015, Computer Sciences Corporation
is in discussions to sell the company in a two-part deal to a foreign strategic and a financial sponsor. Under the current
proposed deal structure, the company’s North American public sector (NPS) segment, which houses its government services
business, would be sold to the financial sponsor. The company’s two other segments, global business services and global
infrastructure services, would go to the foreign strategic buyer. The discussions are expected to be in advanced stages.
• 22 August 2014, Good Technology, which filed to go public in May, may be looking for a buyer or even to raise more private
capital as it struggles to find interest in the public market. The Sunnyvale, California-based mobility and security software
developer was hoping to follow its peer MobileIron’s recent IPO with its own US$100.0M IPO. However, questions about its
technology and a limited appetite for mobile device management solutions may lead to a sale. Microsoft or infrastructure
software vendors can be potential bidders. 14 October 2014, Good Technology Corp., the mobile-security start-up that filed to
go public in May, is reportedly postponing its initial public offering until 2015 because of worsening market conditions.
• 8 August 2014, Hewlett-Packard (HP) is weighing a range of acquisition and divestiture options to accelerate the company’s
revenue growth and allow it to respond more aggressively to threats from competitors. The enterprise services business is
expected to play a weighty role in acquisition considerations because of its central place in the company’s turnaround efforts.
Revenue from the enterprise services division for FY 2013 decreased 8.2% to US$23.5B. About 20% of the company’s total
revenue comes from services, but it earns a mere 2.9% on that revenue. 12 September 2014, Hewlett-Packard Co. is
exploring the sale of its web-based photo sharing service Snapfish, and has held discussions with multiple PE and industry
buyers. 24 October 2014, Hewlett-Packard has begun sounding out PE firms in China to buy its corporate-networking business
in the country. HP is expected to sell at least 51% of the business, H3C Technologies Co, which could be worth roughly
US$5.0B.

Technology
13
Technology Services United States • 8 April 2014, Military and commercial electronic systems maker L-3 Communications of New York will be on the prowl for more
buys in data analytics and cyber defence over the next two years. BAIR analytics could be the potential target. 28 August
2014, L-3 Communications has expressed interest in Digital Ally. However, if an acquisition occurs, Digital Ally might have to
wait until L-3 resolves problems associated with a defence procurement scandal. 4 November 2014, Optex Systems Holdings,
Inc., a manufacturer of optical sighting systems and assemblies primarily for Department of Defence applications, completed
the acquisition of Applied Optics Center division of Warrior Systems Sector with the Electronics Systems business segment of
L-3 Communications Corporation. (22 January 2015, L-3 Communications acquired the assets of MITEQ, Inc. for US$41.0M,
subject to customary adjustments. The business will be combined with L-3’s Narda Microwave-East business located in
Hauppauge, N.Y., and the new organization will be called L-3 Narda-Miteq.)
Hardware Denmark • 7 October 2014, EET Group, the Danish IT spare parts distributor owned by the Swedish PE firm Alipes, could be headed for a
listing before the end of 2014. Alipes has mandated Danske Bank and Carnegie to help with the process and the aim is to list
the company during the first week of December at a value of over DKK1.0B (€134.0M). A sale is also possible if a potential
buyer comes along. 22 January 2015, Swedish investment firm Alipes has received first round bids for its Danish portfolio
company EET Group. In total, four local PE firms and one international PE firm submitted bids. Swedish EQT is one of the
parties interested. Work to prepare for the second round is now ongoing. The company estimates a revenue of DKK1.8B
(€242.0M) and an EBITDA of DKK127.0M for 2014. In 2013, it reported a revenue of DKK1.5B and an EBITDA of DKK112.0M.
In 2012, its turnover reached DKK1.4B, while its EBITDA was DKK112.0M. EET was, however, initially tipped as an IPO
candidate where Carnegie was mandated to work on the IPO. Danske Bank is mandated to work on the sale. With a European
market share that ranges from 1-2% depending on region, EET is a significant player in a very fragmented industry.
Sweden • 14 November 2014, Norwegian PE firm Verdane expects to finalize the auction of its Swedish portfolio company CareTech in
December this year. Pwc has been mandated to run the process. Tunstall of the UK, Bosch of Germany, Doro of Sweden, and
Legrand of France are the potential bidders. CareTech is trading on a valuation just over 10x EBITDA. The company’s FY2014
turnover is expected to reach SEK117.0M (€13.0M) with an EBITDA of SEK16.0M. (16 December 2014, Sweden’s Doro is
buying Caretech from PE fund Verdane Capital for an enterprise value of SEK240.0M (US$31.5M).)

Technology
14
Hardware France • 20 February 2015, Technicolor, the listed French company engaged in the development of broadcasting technologies, is
interested in reinforcing its set-top-box manufacturing operations via the acquisition of a competitor. Chairman and chief
executive Frederic Rose has already scouted the entire market but failed to find an agreement with a potential target yet.
Vector Capital, a 13% shareholder in Technicolor, is on the contrary opposed to that strategy and is pushing for splitting the
company, retaining only the patents portfolio operations that account for almost all of the operating profits of the group.
Germany • 27 October 2014, ZF Friedrichshafen, the private German automotive supplier, is in the process of selling its computer input
devices business Cherry. ZF has mandated KPMG to oversee an auction to sell the asset and potential suitors are now being
approached. The business is non-core as it targets markets outside of ZF’s realm. Cherry is estimated to generate annual
turnover of less than €100.0M. ZF is in the process of completing its US$13.5B acquisition of TRW which it expects to close in
1Q15 and for which it is still awaiting U.S., European and Chinese competition authority clearances. The sale of Cherry
reportedly has no bearing on ZF’s acquisition of TRW. 18 November 2014, TRW Automotive Holdings Corp.’s US$13.5B
acquisition by German auto parts maker ZF Friedrichshafen AG received clearance from the Committee on Foreign Investment
in the U.S. TRW makes components and systems for airbags, safety electronics and breaking and steering while ZF’s core
operations are in clutches, axles, and transmissions.
China • 26 December 2014, Insigma Technology [Zhe Da Wang Xin], a Zhejiang-based computer services company, is considering
divesting its information technology hardware distribution business to focus on cloud computing. The plan is still at a preliminary
stage and the company has not retained any financial adviser yet. It will award a mandate when it works out a more detailed
plan. The distribution network contributed about CNY2.0B (US$322.0M) in 2013 sales. The company could gradually sell the
assets in several phases. Approached by several foreign industry players, it welcomes further pitches from interested buyers.
The assets could be attractive to overseas IT product makers who aim to obtain or reinforce their foothold in China by
controlling the distribution network. Insigma clocked sales of CNY5.2B in 2013 and had cash and cash equivalents of
CNY316.0M by the end of 3Q14.
• 2 September 2014, Ouya, a Los Angeles, California-based maker of Android-based gaming consoles, is in preliminary
acquisition talks with a number of Chinese companies including Xiaomi, Tencent and others based in China. The company has
also been engaged with Google and Amazon. Ouya sees an acquisition as a more likely option than raising funds. The talks
are at an early stage and no offers have been presented. 30 January 2015, Chinese e-commerce giant Alibaba Group
Holdings has invested US$10.0M in Santa Monica, California-based gaming console operator Ouya Inc. The proceeds will be
used to incorporate Ouya’s software and database of over 1,000 games into Alibaba’s set-top box.

Technology
15
Hardware Japan • 26 January 2015, Panasonic Corp. has decided to sell Sanyo Techno Solutions Tottori, a maker of electronics components
used for cars, in April. Sanyo Techno Solutions, is the last remaining subsidiary of Sanyo Electric Co., Ltd., which was
completely purchased by Panasonic in 2011. Panasonic is in talks to sell the subsidiary to a rival company for several hundred
million JPY.
• 23 January 2015, Hitachi High-Technologies, the Tokyo, Japan-based electrical and automated equipment maker, is looking to
sell its etching business. Hitachi, which owns a 51.65% stake in HHT, is seeking about JPY50.0B (US$422.0M) for the
business. The etching unit has EBITDA margins of about 25%. Hitachi is revisiting the sale possibility for the etching unit after
attempting an auction process a few years ago. At the time, bidders included majors such as California-based Applied Materials
(AMAT), Japan’s Tokyo Electron (TEL), and California-based Lam Research. However, the uncertain future of the
semiconductor industry has largely deterred buyers. The etching business is a front-end semiconductor equipment
manufacturing process. HHT has a significant presence in the etching segment and could attract the interest of sector peers not
currently engaged in the etching business. HHT increased revenues to JPY313.0B from the April to September 2014 period, up
from JPY291.0B a year earlier. Its net profit also picked up to JPY15.0B from JPY3.6B over the same period.
• 21 January 2015, Fuji Electric, the listed Japan-based electronics company, has prepared a JPY20.0B (US$169.0M)
framework for M&A and overseas factory investments. Fuji Electric could make acquisitions by as early as FY15 of companies
in Vietnam and India that have strength in the manufacturing of industrial machinery such as inverters and in engineering
services. Fuji Electric would inject new products in the sales routes of the target companies and provide systemisation. Fuji
Electric will build a fuel cell assembly plant in Germany.
• 17 September 2014, Panasonic Corp. will reportedly spend JPY100.0B (US$932.0M) by the year ending March 2019 on
infrastructure investment and M&A deals on audio and equipment makers, targeting the business segments of security
cameras and corporate-use telecommunication systems. The fund will be used for acquisitions of overseas companies in the
business sector and for organizing its service network. The company might also consider a buyout of system development
companies that have good business ties with the distribution and logistics sectors. The move is part of Panasonic’s plan to
raise revenue of its system development operations to JPY1.5T in the year ending March 2019, or a 30% increase from the
year ended March, 2014. The company will also set up business bases for system maintenance operations in India and Brazil,
doubling the number of those bases to eight. 31 October 2014, Panasonic will aggressively look for mergers and acquisitions
as well as investments in strategic partners. The company is reportedly ready to spend more on growth through acquisitions
and alliances. It is considering setting aside a significant budget for M&A purposes. 31 January 2015, Panasonic Corp. has
stopped making TVs in China and plans to liquidate its joint venture in Shandong, the latest in a string of Japanese electronics
companies exiting overseas TV markets amid strong pricing pressure.

Technology
16
Hardware Japan • 15 August 2014, Hitachi High-Technologies, the listed Tokyo, Japan-based electrical and automated equipment maker, is
looking to sell its die bonder business. The company will be advised by Mitsubishi UFJ Morgan Stanley Securities on the fresh
process and the deal size is expected to be below US$100.0M. In May, it was reported that Hitachi High-Technologies was in
the final stages of selling its die bonder business with KPMG as sellside advisor. However, the earlier process stalled as
potential buyers walked away from the deal after the company decided not to sell the mounter business as part of the die
bonder sale. This also resulted in the new sellside advisory mandate. Hong Kong’s ASM Pacific Technology and Singapore-
headquartered NASDAQ-listed K&S were among those previously looking at the die bonder business. The company could also
consider selling to PE. The electronic device systems segment, which primarily comprises the semiconductor business, posted
sales of JPY117.0B (US$1.1B) for the year ended 31 March 2014. Hitachi High-Technologies posted sales of JPY639.0B and
net profit of JPY18.0B for the period ended 31 March 2014. 22 December 2014, Hitachi High-Technologies Corp. and a
Saitama-based subsidiary are likely to transfer semiconductor process equipment business to a Tokyo-based holding company.
The company and the Saitama-based subsidiary will set up a new company and transfer bonding equipment business to the
new company. Both companies are expected to transfer all stake in the new company to the Tokyo-based holding company on
March 31, 2015.
United States • 7 November 2014, Hitachi is planning to sell half of its stake in California-based hard disk drive maker Western Digital for an
estimated JPY70.0B (US$609.0M). Hitachi, which currently holds just above 5% stake in Western Digital, will sell 6.25 million
shares or about half of its stake in the company, to institutional investors, through a brokerage. Hitachi plans to use the
expected gain of JPY40.0B on growth investments in its core social infrastructure-related business. Hitachi is expected to hold
on to the roughly 2.6% that will still remain in Western Digital. 5 December 2014, A San Jose-based unit of Western Digital
Corp. has acquired a maker of solid-state storage systems used in scaling cloud and enterprise data centres. The value of
HGST Inc.’s cash buy of Skyera in San Jose is estimated in the US$400.0M range.
South Korea • 30 December 2014, Alti-Electronics, a South Korean electronic parts maker, will mandate a financial advisor for an upcoming
company sale. The receiver of Alti-Electronics has sent request for proposals to investment banks and accounting firms for the
mandate. Alti-Electronics has entered into court receivership in 2012. It had been listed in 1997 and delisted in 2011. Alti-
Electronics recorded sales and an operating profit of KRW80.4B (US$73.1M) and KRW2.9B, respectively, in 2013.

Technology
17
Hardware South Korea • 20 December 2014, Ehwa Technologies, the KOSDAQ-listed power supply distributor, is in talks to sell its stakes in E-Film and
E-Tron to a Chinese pension fund. E-Film and E-Tron are both listed, South Korea-based IT products makers. The potential
buyer reportedly wants to acquire E-Film to enter into the cosmetic business through E-Film's cosmetic making subsidiary. E-
Film has a 51% stake in Global K-Beauty, a cosmetic distributor of South Korean cosmetic products in China. The Chinese
fund, whose name was not disclosed, has offered KRW25.0B (US$22.8M) for a 10.21% stake in E-Film and a 10% stake in E-
Tron in a bundle. The South Korean exchange has requested E-Film and E-Tron to clarify the rumor of a potential company
sale by its largest shareholder.
Software Finland • 12 December 2014, Jongla, the private Finnish mobile messaging specialist, is reportedly seeking new owners. The company’s
private shareholders — a mix of private investors, partner companies and management — have mandated HLP Corporate
Finance, a Helsinki-based boutique, to advise on a sale process. Teasers have recently been circulated, with information
memoranda to follow early January. Indicative offers for the business are due by the end of that month. Jongla’s software
allows for the sharing of text, images, videos, push-to-talk messages, interactive stickers and locations amongst its users. Its
primary market is Asia, particularly South Eastern countries such as Indonesia, Malaysia and the Philippines. The software
operates across the main global mobile operating systems. Given the diverse use of the platform, Jongla is likely to be
marketed toward players in different TMT sectors, such as tele-operators, online retail companies and media houses. Given its
geographic focus, potential suitors could emerge in Asia.
Sweden • 10 September 2014, Mojang is in talks to be acquired by U.S.-based software major Microsoft. The value of the deal is
expected to exceed US$2.0B. Mojang, reported a profit of SEK816.0M (US$115.0M) and a revenue of SEK2.07B in 2013. (6
November 2014, Microsoft completed the acquisition of Mojang for US$2.5B.)
United
Kingdom
• 25 February 2015, UK-based software group Fourth is preparing to launch a sale process. Incumbent sponsor ECI Partners
has hired Jefferies to sell the provider of back office software. ECI Partners acquired Fourth in 2011 in a pre-emptive
management buyout. The sponsor provided funding to develop new products and finance bolt-on acquisitions, including US-
based Adaco for £7.5M in September 2012.
• 6 November 2014, Sage Group’s appointment of Stephen Kelly as chief executive has prompted speculation that the listed
UK-based accounting software company might pursue acquisitions. Xero, a listed New Zealand-based competitor, is expected
to be a potential bid target for Sage. Sage posted an operating profit of £180.0M (€230.0M) on £657.0M revenues in 1H14.

Technology
18
Software Italy • 27 February 2015, EidosMedia, an Italian software company, is coming to market in early April and Lazard has been mandated
by private equity owners, Wise Venture and Aksia, to prepare the sale process. Wise Venture and Aksia jointly bought 60% of
EidosMedia in 2010 and have now decided to exit. The remaining 40% is owned by CEO Gabriella Franzini, COO Massimo
Maggi, CIO Ismail Gazarin and Angelo Grampa through IT companies Aleph Consulting and Epress Information Services. The
company generates EBITDA in the region of €15.0M.
Czech
Republic
• 20 February 2015, Geosense, the Czech geographical mapping company, is in advanced talks to sell a significant minority
stake to a VC investor. The deal is expected to be closed in early March and Geosense’s three owners have been handling
sale negotiations themselves. The company is 86% owned by Ladislav Capek, the CEO, while Jan Zvonik holds 10% and a
third friend Vaclav Macek owns 4%. The company provides various online mapping solutions for the public and private sector.
Its products and services include map portals listing zoning and regulation plans, underground services and technical
infrastructure, tourist maps and points of interest.
Russia • 2 February 2015, Rsupport, a listed South Korean remote solutions developer, is considering forming strategic partnerships by
the end of 2015 to further overseas expansion. The partnerships could take the form of establishing joint ventures (JVs),
conducting acquisitions or minority stake sales. Rsupport has been approached by global software and hardware developers
that want to fully acquire the company, but it is not interested in selling the whole company. Regarding overseas expansion, the
company is looking at Asian countries including Japan and China, as well as North America.
• 21 October 2014, SAP SE, the Germany-based enterprise applications developer, sees M&A as part of its growth strategy for
CIS (Commonwealth of Independent States). Within this strategy, the Walldorf, Baden-Wurttemberg-headquartered software
giant is looking at strong Russian and other CIS-based players with expertise and capabilities to boost its expansion in the
region. SAP is not seeking acquisitions merely to boost its market sizes in countries in which it has a presence, though this
could be a goal in some cases, but mainly to address some specific industry challenges. Tapping the SME segment is likely
through acquisitions or by entering into partnerships with local players with established client bases or special ERP products
and related solutions and services tailored to meet local business needs. SAP’s gross revenues in 2013 totalled €16.8B,
operating income was at €4.5B and free cash flow stood at €3.3B. The gross revenue forecasts for 2014 envisage increasing
the 2013 data to at least €22.0B. 19 November 2014, German business software maker SAP is doing an about-face on its
acquisition strategy and plans no more big new deals in the next few years.

Technology
19
Software Netherlands • 7 November 2014, AVG Technologies, the Dutch security software company, has received takeover approaches from PE firms
and strategics. The company was founded in 1991 and was taken public in 2012.
France • 25 February 2015, Private equity firm Carlyle is lining up its portfolio company Metrologic Group for a sale and the auction
process is due to kick off shortly. Carlyle acquired 61.77% of the capital and 71.15% of the voting rights of Metrologic in 2011 in
a deal advised by HSBC. The company is a designer and manufacturer of 3D inspection software, electronics, and dimensional
control systems based in Grenoble and currently operates in 30 countries.
Germany • 12 December 2014, Founders Link, a German venture creation website, will look to raise up to €4.0M next year to develop its
two platforms, Netzshopping.de and Sieger. It is willing to sell up to 30% stake in each of the platforms. The company is looking
for immediate angel investment of €0.5M and will further look to attract up to €4.0M of venture capital in May-June next year.
Each platform has generated revenues in the five-digit range this year. In 2015, it aims to reach around €1.5M of total revenue
for the two platforms. Netzshopping and Sieger are active in German-speaking Europe — Germany, Austria, and Switzerland
and will look to expand to new European markets. Founders Link will conduct the deal internally.
Canada • 28 January 2015, mdBriefCase, an online medical education provider in Australia and Canada, is targeting acquisitions in the
digital education space. mdBriefCase is expected to seek acquisitions after it receives a capital injection from the Canadian PE
business Persistence Capital Partners.
• 15 January 2015, Mitel Networks, a Kanata, Ontario-based provider of business communications and collaboration software, is
poised to pursue acquisitions. The company plans to focus more on M&A. Mitel will, if it pursues deals, benefit from the sorts of
cross-selling opportunities that acquisitions typically present.
• 14 January 2015, Mediagrif Interactive Technologies, a Quebec-based e-business networks company, will probably pursue
more M&As going forward, while wrapping up the integration of its most recent acquisitions. Due to the fact that Mediagrif has
been reducing its debt load using its free cash flow, the company has the balance sheet strength to pursue M&As, with special
focus on the government procurement niche.

Technology
20
Software Canada • 28 July 2014, Open Text, a Waterloo, Ontario-based provider of information management software products, could pursue
more acquisitions. The company is interested in emerging markets in the Middle East, South East Asia, and Eastern Europe.
26 August 2014, The Competition and Markets Authority has cleared the completed acquisition by Open Text Corporation of
GXS Group Inc., a business-to-business cloud integrator, announced last year. 5 December 2014, OpenText Corporation, a
global leader in Enterprise Information Management (EIM), agreed to acquire Actuate Corporation. Under the terms of the
agreement, which has been approved by the boards of directors of both companies, a newly formed, wholly-owned subsidiary
of OpenText will commence a tender offer for all outstanding shares of Actuate for US$6.60 per share in cash, for a total equity
value of approximately US$330.0M, less Actuate's cash, for an enterprise value of approximately $272.0M. OpenText will fund
the acquisition with cash on hand.
• 18 June 2014, Constellation Software, a Toronto, Ontario-based consolidator of vertical market software entities, could pursue
acquisitions with proceeds from a debentures offering. 22 September 2014, Constellation Software Inc.’s wholly-owned
subsidiary, Volaris Group, has acquired Incognito Software Inc. and Interactive Enterprises Inc. collectively a communications
operations support systems solutions business. The acquisition is Volaris’ first acquisition in the communications vertical
market. 1 January 2015, Constellation Software Inc., completed, through its wholly-owned subsidiary N. Harris Computer
Corporation, the acquisition of CareTracker Inc., a subsidiary of OptumInsight. The financial terms of the transaction were not
disclosed.
China • 17 January 2015, Shenzhen Jieshun Science and Technology [Jie Shun Ke Ji], a China-based listed access control solutions
provider, is open to make acquisitions. The company has approached many potential targets, however, no ideal target has
been identified so far. Shenzhen Jieshun Science and Technology has been investing on intelligence community sector since it
was listed in 2011, and plans to expand into advertising and digital operation areas.

Technology
21
Software China • 6 January 2015, 51qiniu.com [Qi Niu Wang], a privately held Shenzhen-based share dealing mobile application developer and
operator, plans to kick off its second round of fundraising by this year-end. It aims to raise about US$5.0M via a minority stake
sale. The company has already signed a preliminary investment agreement with several institutional investors from Shenzhen
and Shanghai to raise up to CNY8.0M (US$1.3M) for its first round. It aims to have 300,000 registered users and 40,000 daily
active users by the time it initiates the new funding round this year. The company will use the proceeds from the first funding
round to reinforce its marketing. Part of the proceeds would also go towards hiring staff and purchasing raw data from financial
data and information providers including Wind Information to improve its analytics capability. Proceeds from the second funding
round will primarily go towards advertising with a view to bringing new clients on board and toward establishing partnerships
with distributors. Chief executive officer Dong Yang has a close to 70% stake in the company, while state-owned newspaper
Securities Times owns the remainder. 51qiniu plans to list the company in the A-share market because the procedure for an
overseas listing could be complicated when it has a state-owned shareholder on board.
• 7 November 2014, Lanyu Kewei Science & Technology [Lan Yu Ke Wei Ke Ji], a Sichuan, China-based, privately held
environment monitoring solutions provider, is seeking to acquire an interest in a European industry player. A preferred target
should have strong R&D capabilities in application software development and digital environment monitoring solutions for air
and water. The company is interested in acquiring a controlling stake in a potential target. Lanyu Kewei wants to tap a potential
partner’s technology to bolster its R&D capabilities and presence in the environment monitoring business in China as it aims to
be able to offer more digitized and intelligent services to its clients.
• 3 November 2014, Wooduan Entertainment [Wu Duan Ke Ji], a Hangzhou, China-based privately held web game developer, is
in discussion to take on a strategic investor. The company is still receptive to approaches from other interested investors. A
majority stake could be sold to a potential investor to expand its marketing and boost further growth. The company is expected
to earn CNY30.0M net profit this year and values itself around CNY450.0M to CNY500.0M (US$73.3M to US$81.5M). The
valuation is expected to reach CNY600.0M by next year based on its potential product launch.
• 8 April 2014, Giant Interactive, a Shanghai-headquartered online game developer and operator, is actively seeking domestic
buys to boost its mobile internet business. 15 July 2014, Giant Interactive Group Inc. is in final stages of getting acquired by
Giant Investment Limited and Giant Merger Limited, a wholly owned subsidiary of Giant Investment for US$3.0B. 5 November
2014, Giant Interactive plans to acquire a mobile application distribution platform firm to fuel growth in mobile games. Possible
takeover targets include Tencent, Wandoujia, and 360.

Technology
22
Software Japan • 27 January 2015, Gumi, the listed Japan-based animation company, and Shinsei Corporate Investment, have jointly
established a JPY2.0B (US$17.0M) investment fund. The two companies set up the fund to invest in smartphone animation
ventures in Asia, a sector in which growth is expected. Tie-ups from a business standpoint to expand into Asia are also a
possibility.
• 21 November 2014, Cresco, a listed Tokyo, Japan-based company specializing in software development, could look to acquire
sector peers and IT consulting firm. The company considers potential acquisitions as one feasible and key means to secure
experienced engineers, as the shortage of such experts has been a serious impediment for the company’s future growth so far.
The company is receptive to suggestions from advisors with target referrals. Cresco runs software development businesses
involving financial services, travel agency service and retail segments. For the value of goodwill, the company is prepared to
pay up to 3x of a target’s operating profit. Potential acquisitions could be funded through cash, debt (bank loans) or a
combination of such means. The company had cash and cash equivalents of JPY3.6B as of the end of March 2014.
• 8 November 2014, Yahoo Japan Corp. is in discussion with Daum Kakao, a South Korean provider of free-of-charge
messaging application Kakao Talk, to dissolve a capital tie-up with Daum Kakao’s Japan unit, Kakao Japan. Yahoo Japan took
a third-party share placement of Kakao Japan in October 2012, taking a 50% stake in the unit to promote the free messaging
application in Japan. The number of Kakao Talk users worldwide is more than 100 million, and holds a 90% market share in
South Korea.
South Korea • 4 February 2015, JoyCity, a listed, online and mobile game developer and publisher, could be an attractive potential takeover
target since its private equity backer, Skylake Incuvest, is expected to seek an exit before 2016. Potential bidders include
NCsoft, a listed South Korean game developer, and Tencent, a China-based Internet group, which are looking to enhance their
game portfolios and content sourcing.

Technology
23
Software South Korea • 21 January 2015, Yello Mobile, the South Korean mobile application operator, plans to penetrate Southeast Asian and South
American markets by making acquisitions and opening its own overseas branches with proceeds from its initial public offering
(IPO). The company is eyeing Asia, outside China, and South America, where the company sees more growth potential
compared to North America. The China market is tough because of intense, local competition, such as Alibaba Group and
Tencent Holdings, and tightening regulations while the North America mobile information technology market is already
saturated. The company is approaching foreign investors for KRW300.0B (US$290.0M) in funding. IPO proceeds would also be
used for research & development and marketing. The company aims to post sales of up to KRW650.0B (US$593.0M) by the
end of 2015. Sales hit KRW53.2B at the end of September last year, up 680% from the first nine months of 2013. Operating
losses in the first nine months of 2014 hit KRW288.0M. Operating profit was KRW1.5B in the first nine months of 2013 by
comparison. The company expects to return to profitability this year.
• 12 November 2014, Nexon GT, the game development unit of Nexon Korea, is looking to invest in early-stage mobile game
developers to shore up its portfolio. Nexon GT had sales of KRW34.3B and an operating profit of KRW12.4B in 1H14. Nexon
Korea owns a 63.15% stake in the company.
United States • 28 February 2015, Intelligent Software Solutions (ISS), a provider of software to the government, is in a sale process for which
the company is working with a Colorado-based boutique bank . The company has about US$20.0M in EBITDA. Potential
buyers for the firm are likely to be private equity firms. Raytheon, Lockheed Martin and CACI International are pegged as
potential strategic buyers for ISS.
• 28 February 2015, General Dynamics is considering the sale of cyber security business Fidelis and is being assisted by AGC
Partners for the process. Fidelis has approximately US$200.0M in revenue and is likely to be targeted by private equity firms.
• 5 February 2015, UnitedHealth Group is in the process of divesting its emergency healthcare IT unit, Optum Clinical Solutions.
Piper Jaffray has been mandated to divest the unit, which generates around US$40.0M in EBITDA. UnitedHealth’s Optum unit
is the insurance giant’s services platform, which provides health IT, population management and pharmacy benefit
management, amongst other services. Wakefield, Massachusetts-based Optum Clinical Solutions provides enterprise software
for high acuity hospitals.

Technology
24
Software United States • 28 January 2015, Informatica ran at least one market check to weigh sale interest in the past few months but its asking price
was too aggressive. The Redwood City, California-based data technology company is the latest target for activist fund Elliott
Management. The company reached out to PE buyers including Thoma Bravo and Hellman & Friedman and Silver Lake.
• 23 January 2015, Raytheon, a Waltham, Massachusetts-based defence technology company, is expected to continue its
search for targets in the cyber security space. Raytheon had around US$2.6B in cash and cash equivalents as of 28
September 2014. Raytheon could become more aggressive because of the shrinking defence budget as it will become harder
to grow organically in such an environment. Raytheon could continue to look at private companies, which has been the trend in
its past acquisitions of companies such as Blackbird and Visual Analytics. It is expected that any future deal would be of a
company with less than US$500.0M in revenue. In addition to cyber security, Raytheon could also look at acquisitions in
information assurance, encryption technology, robotics and intelligence, surveillance and reconnaissance (ISR).
• 16 January 2015, E2open, a cloud-based, on-demand software company based in Foster City, California, has retained Bank of
America to advise on a possible sale. The company generated negative EBITDA of US$3.3M in 3Q14, and expects adjusted
EBITDA to be in the range of negative US$15.7M to negative US$15.2M for the year. (5 February 2015, Insight Venture
Partners, a private equity firm, acquired E2open Inc. for US$273.0M. The deal is expected to close before the first quarter of
fiscal 2016.)
• 6 January 2015, AOL, a New York-based internet firm, has been contacted by New York-based telecoms firm Verizon for a
potential tie-up via a joint venture or an acquisition. No official proposal has been tabled by Verizon. AOL’s technology that
enables online purchase and sale of advertisements automatically is the main draw of Verizon’s interest in the company.
Verizon's interest in AOL’s media assets such as TechCrunch, Huffington Post and Engadget remains unclear.
• 8 December 2014, Despite uncertainty surrounding FireEye’s ability to create an integrated security suite, its valuation may be
reaching levels that some potential buyers may find attractive. FireEye’s valuation has contracted from a high of US$97.0 per
share to a low of US$25.0 in the past year. The Milpitas, Calfornia-based company’s valuation has fallen back into reasonable
territory after briefly trading at a stratospheric multiple. The current price could be interesting to strategic buyers, like Oracle or
IBM who may be tempted by a deal in the US$20.0-US$30.0 per share range. It is hard to see company CEO David DeWalt
selling while pursuing a strategy of building a platform. It is expected that a hostile bidder would likely need to offer a significant
premium, given the high prices that the company has traded at recently. The company is focused on being the fastest-growing
security company in the world. Start-ups E8 and Niara could be near-term possibilities for acquisition by FireEye, with an
outside chance that Splunk could also look attractive.

Technology
25
Software United States • 5 December 2014, Hortonworks, which filed to go public on 12 November, still may be a takeout target as its financials could
dissuade public investors, but its technology could lure an offer from a large tech giant. Microsoft, which is a strategic partner
and also accounted for 22.4% of Hortonworks’ total revenue for the nine months ended 30 September 2014, could be
interested in acquiring the company, as could Teradata or Hewlett-Packard. Hortonworks’ S-1 filings showed the company had
a net loss of US$86.7M for the nine months ending 30 September 2014, compared to US$48.4M for the same period a year
ago. Such losses could be hard for a company like Teradata to take on but would not be a concern for Microsoft. The Palo Alto,
California-based software company’s valuation would be more than US$600.0M that leaves only a handful of tech companies
that could bid. Hortonworks’ 2013 revenue stood at US$55.0M. Hortonworks had US$17.9M in revenues for the eight months to
31 December, 2013 and US$41.5M for the 12 months to 30 September, 2014. Goldman, Sachs & Co. and Credit Suisse
Securities (USA) LLC are the representatives of the underwriters for the IPO.
• 1 December 2014, Microsoft is expected to announce the acquisition of iOS and Android e-mail client, Accompli. Microsoft is
expected to pay US$200.0M for the company. Microsoft briefly posted a blank blog post with a URL that said it was buying the
start-up.
• 25 November 2014, Agilex Technologies, an employee-owned defence services and technology company, could be an
acquisition target. Agilex was named as one of the 50 fastest-growing companies by Washington Business Journal. The
company has a mix of defence and healthcare services, which might help it attract interest from defence majors interested in
diversifying. CACI International, ManTech International, and SAIC are the types of companies that could show interest. (9
February 2015, Accenture Federal Services has agreed to acquire Chantilly-based information technology company Agilex
Technologies Inc.)
• 8 November 2014, CrowdStrike, a private Irvine, California-based cyber security company, is receiving acquisition interest.
CrowdStrike raised US$26.0M in a Series A led by Warburg Pincus in 2012 and US$30.0M in a Series B led by Accel Partners
in 2013. Southern California-based CrowdStrike is also looking for partnerships to help expand the company’s technology. The
company has grown 100% quarter-over-quarter.
• 1 October 2014, Navex Global entered into exclusivity with Vista Equity Partners. A deal announcement is expected in the
near future. The valuation for Navex is expected to be around US$500.0M, with about US$300.0M of leverage used to fund the
deal. Based in Lake Oswego, Oregon, Navex develops and markets governance, risk, and compliance software. The company
kicked off a sale process in the summer, a process which was led by Deutsche Bank. The EBITDA for Navex is in the range of
US$40.0M-US$50.0M. (21 November 2014, Vista Equity Partners has completed the acquisition of Navex from Riverside.
Financial terms of the deal were not disclosed. company abc, Deutsche Bank, Jones Day, and Piper Jaffray advised Riverside
on the transaction.)

Technology
26
Software United States • 16 September 2014, BranchOut, a professional networking application on Facebook, is in talks to sell. The company is in
discussions with several potential buyers to sell its team, product and data. The company was in late-stage talks with Hearst
Corporation to sell its mobile team, which built the chat app Talk.co. (28 November 2014, U.S.-based professional networking
service BranchOut has sold its assets to human resources software company 1-Page for US$5.4M after BranchOut’s staff were
acqui-hired by media company Hearst.)
• 21 July 2014, Elliott is expected to persuade EMC for spin-off of its server-software business VMware. EMC holds a stake of
approximately 80% in VMware. Hewlett-Packard, Cisco Systems, or Oracle Corp. might be attracted to a full or partial takeover
of EMC. 28 October 2014, EMC has acquired Maginatics and Spanning Cloud Apps in a bid to bolster the company’s cloud
and data recovery expertise, after the company bought OpenStack specialist Cloudscaling. 3 February 2015, VMware has
acquired Immidio, a privately held company that offers a user environment management (UEM) solution.
Semiconductor Germany • 18 February 2015, Fortec, the German electronic components specialist, is expected to receive a takeover offer from local
investment holding TRM. TRM owns 31.41% stake in Fortec and is attempting to secure sole ownership in the company.
China • 26 January 2015, A Chinese consortium led by BLX IC Design [Shen Zhou Long Xin] is seeking to acquire the California, U.S.-
based chipmaker Advanced Micro Devices. The consortium consists of BLX IC Design, Semiconductor Manufacturing
International Corporation and an undisclosed Chinese venture capital firms. BLX IC Design is a Chinese semiconductor
company controlled by Institute of Computing Technology Chinese Academy of Sciences of China.
• 6 January 2015, China Electronics Corporation (CEC), a Chinese state-owned company, is planning to bid for the mobile chip
business of Marvell Technology, a Bermuda-based Nasdaq-listed semiconductor products company. CEC plans to complete
the acquisition with internal resources and the terms of the deal are under discussion. Marvell recorded net revenue of more
than US$3.4B in FY14.
• 5 November 2014, Wuhan P&S Information Technology, a Hubei-based, listed integrated circuit products manufacturer, is
seeking to accelerate its business expansion via M&As. The company signed a framework agreement with Shenzhen Oriental
Fortune Capital [Shen Zhen Dong Fang Fu Hai Tou Zi Guan Li], a privately held investment company over cooperation in equity
investment, business integration and M&As. Wuhan P&S Information Technology is expecting a rapid business expansion via
the external acquisitions.

Technology
27
Semiconductor China • 4 November 2014, Chinese state-owned investment company Shanghai Pudong Science and Technology Investment (PDSTI;
Pu Dong Ke Tou) is to have a new controller as Pudong New Area Government will sell a majority stake to state-owned
Shanghai Industrial Investment (Holdings). Pudong New Area Government, currently PDSTI’s only shareholder, is also in
discussion to raise CNY300.0M (US$49.0M) from one or two investors through a 10% increase in PDSTI’s share capital. The
funds will be used over the next few years, based on expectations of growth in the global market, to invest in or acquire both
China-based and overseas makers of integrated circuits or semiconductors. 30 December 2014, Hua Capital, which manages
the Beijing IC fund, has teamed up with Shanghai Pudong Science and Technology Investment (SPSTI) and other investors in
an offer to buy OmniVision Technologies, a California-based maker of camera sensors, for US$1.7B.
• 24 October 2014, Tianshui Huatian, a Gansu, China-based semiconductor tester and packaging provider, is reportedly still
seeking peer acquisitions after it dropped out of takeover talks with Singapore-listed STATS ChipPAC in September, 2014. The
company aims to reinforce its client base and gain advanced technologies through acquisitions. Financial advisers with suitable
targets in mind could be entertained. It could afford a deal of around US$1.0B. Taiwan, which has a number of industry players
with good technologies, is an attractive acquisition destination, but it is very hard to get acquisition approval from Taiwanese
government. Any investment from mainland China in Taiwan’s high-tech industry would be sensitive. The U.S. is another
possible place for Tianshui Huatian to look into. However, it currently has no ongoing talks with any companies based in
Taiwan or the U.S. Also, Singapore and Malaysia, home to potential targets with well-established client bases and business
scales, could also be of interest to Tianshui Huatian. Singapore-based private company UTAC could be a possible target.
UTAC is owned by PE firms Affinity and TPG Capital, which will be evaluating an exit strategy but there is no guarantee that
there is a Chinese strategic ready to go for streamline foreign investment approval from China. (15 December 2014, Tianshui
Huatian signed an agreement to acquire U.S. firm Flipchip and unit for $40.6M in a deal to purchase 16.15% stake in Huatian
Technology (Kunshan) Electronics for CNY97.7M (US$15.78M).)
Japan • 20 December 2014, Panasonic Corp is reportedly in talks to sell a circuit board unit to a local electronic component company in
Yamanashi Prefecture, central Japan. Panasonic expects to complete the sale of the unit, Panasonic Device Yamanashi, early
next year, as part of reorganization of its electronics component business. Panasonic Device Yamanashi, with about 200
workers, makes and supplies electronic circuit boards for auto makers and industrial equipment makers in Japan, with an
annual production of JPY2.0B (US$16.8M).

Technology
28
Semiconductor Japan • 24 September 2014, Toshiba has reportedly been in contact with potential buyers regarding the sale of one or more of its
semiconductor businesses. There is expected to be an acquisition interest from SK Group, the diversified South Korean
conglomerate. SK Hynix may be keen to gain Toshiba’s logic IC unit, although other peers from Taiwan and/or China could also
be potential acquirers for its technologies. The logic IC business could be a non-core divestiture for Toshiba, as the Japanese
giant is increasing its focus on its core NAND flash memory chip business. Toshiba, expects to generate total sales of about
JPY1.2T for its semiconductor business, of which its core NAND flash memory would account for about JPY800.0B, while
system LSI could generate JPY215.0B in the FY13. 29 January 2015, Japanese industrial conglomerate Toshiba is mulling
various non-core divestitures to focus its resources on strategically important segments and to help reduce mounting debt.
Speculators flag up the company's 30% stake in Topcon as attractive to PE. Toshiba's white goods and PC materials
businesses could also be potential sale candidates. While its lighting and logistics businesses are strong candidates for
divestiture, there is speculation on Toshiba's 30% stake in measurement and medical equipment maker Topcon. Some PE
firms have looked at potentially acquiring the 30% stake in Topcon owned by Toshiba. But the possibility of Toshiba selling the
stake is very low, as Topcon is also involved in the healthcare business, one of Toshiba’s new target pillars for growth. It is
logical that Toshiba could consider divesting its PC peripherals, imaging & audio business, LCD TV, Blu-ray Disc, Notebook
PC, and tablet businesses. Toshiba’s profitable PC business is also being restructured following the company’s announcement
in September 2014 that it would cut 900 employees, or 20% of the PC business headcount (excluding manufacturing) by the
end of March 2015 and cut fixed costs by more than JPY20.0B from a year earlier.
• 22 September 2014, Murata Manufacturing is expected to consider both domestic and overseas M&A opportunities after the
recent plan to acquire Peregrine Semiconductor, announced on 22 August, 2014. The Japanese Radio Frequency (RF) module
maker has received a lot of approaches on potential acquisition targets and would be receptive to further approaches. Murata
would not prioritize domestic targets over foreign ones but the target should have a solid sales channel for components used in
Murata’s less familiar industries, such as automobiles, environment and energy, and healthcare. Alternatively, it should possess
a highly specialized or patented technology that would strengthen Murata’s existing exposures. Murata has acquired a crucial
supplier that will help with its vertical integration efforts. Moreover, the acquisition gives Murata access to Peregrine’s CMOS
multimode, multiband power amplifier, which would better position Murata to compete with Skyworks, Avago Technologies, and
QorvoTM, which is the new combination of RF Micro Devices and TriQuint Semiconductor. 12 December 2014, Murata has
completed acquisition of Peregrine Semiconductor. Murata has acquired all outstanding shares of Peregrine. The cash
transaction paid the holders of Peregrine common shares US$12.50 per share.

Technology
29
Semiconductor Japan • 14 February 2014, As per the rumours, the PE backers of Covalent Materials, a Tokyo, Japan-based semiconductor and flat
panel display manufacturer, have retained GCA Savvian to advise on a potential sale. 2 May 2014, Covalent Materials, a
Tokyo, Japan-based semiconductor and flat panel display manufacturer, is being shopped to potential buyers in preparation for
a sale process. The PE backers, Unison and Carlyle, have retained Nomura Securities as sell-side advisor. Unison and Carlyle
own 47.5% and 47.2% stakes respectively in Covalent Materials. 15 July 2014, The first-round bids for Covalent Materials, a
Tokyo, Japan-based semiconductor and flat panel display manufacturer took place on 18th July, 2014. The PE backers, Unison
and Carlyle, have retained Nomura Securities as sell-side advisor. 4 August 2014, The PE owners of Covalent Materials, a
Tokyo, Japan-based semiconductor and flat panel display manufacturer, have shortlisted France-based listed construction and
high-performance materials producer Saint-Gobain and UK-headquartered PE firm Cinven to move on to the second round. (8
December 2014, CoorsTek, Inc. the world's largest engineered ceramics manufacturer, and Covalent Materials Corporation, a
leading Japanese engineered ceramics manufacturer, has reached a definitive agreement with the Carlyle Group and Unison
Capital Group to acquire Covalent Materials. The parties expect the transaction to close on December 26, 2014. Carlyle Group
and Unison Capital Group are planning to transfer all of its interest in Covalent Materials Corporation (95.2% of the entire
common stock), to CoorsTek on December 26, 2014. Furthermore, they are asking the other shareholders of Covalent to
transfer their shares in Covalent to CoorsTek.)
• 26 February 2015, Private equity firm H&Q Asia Pacific is considering selling its stakes in Hana Micron. The Korean
semiconductor package maker could be an attractive target amid the strong fundamental outlook of the semiconductor sector.
A few strategic investors have approached the company and its recent trading at more than KRW11,150 a share is also seen
as favorable to the sale process. CEO Choi Chang-ho and H&Q have a 24.2% and18.95% stake in the company respectively. It
manufactures wafer-level chip-scale packaging ,flip chip ball grid array packaging, system in package, multi-chip packaging,
quad flat no lead packaging and others used in communication equipment. The company recorded sales of KRW216.8B
(US$198.0M) with an operation profit of KRW19.2B (US$18.0m) for the first nine months of FY14.
• 26 November 2014, Dongbu LED, the LED-making unit of distressed Dongbu Group, is inching closer towards a sale after its
creditors hired an undisclosed accounting firm to start a process this year. LED package companies such as Seoul
Semiconductor, Wooree E&L and Itswell are possible bidders, because they need economies of scale to reduce costs. The
deal size is estimated to be in the range of KRW30.0B-KRW40.0B (US$28.5M-US$39.2M), and Dongbu LED will issue new
shares to offer a controlling stake in the company. 3 December 2014, PwC South Korea, the financial advisor on the sale of
Dongbu LED, officially announced the sale, which will be carried out through a public competitive bidding to raise capital.

Technology
30
Semiconductor United States • 18 February 2015, Freescale Semiconductor, the Austin, Texas-based provider of embedded processing solutions, is in
discussions about a possible sale. Freescale owners the private-equity firms Blackstone, Carlyle, TPG and Permira have
appointed unnamed investment banks to analyse a possible deal. South Korea's Samsung Electronics is expected to be a
possible contender.
• 4 February 2015, Formfactor, a U.S. based wafer test technology company, is looking for buys or possible business
combinations. The company has been holding ongoing conversations with possible targets, with many of these companies
currently not for sale. It is looking to acquire or merge with a company that has made heavy R&D investment and where an
opportunity exists to leverage its technologies.
• 10 January 2015, Silicon Image, a Sunnyvale, California-based semiconductor maker, has retained Barclays to advise on a
review of strategic alternatives. Silicon Image saw an activist investor emerge last month, when Engaged Capital disclosed a
5.2% stake and argued that the company was valued between 48%-116% higher on a sum-of-the-parts basis than its current
market valuation. (2 February 2015, Lattice Semiconductor Corporation signed a definitive agreement to acquire Silicon Image
in a transaction valued at approximately US$600.0M. The fairness of the proposed acquisition of Silicon Image, Inc. by Lattice
Semiconductor Corporation is being investigated by WeissLaw LLP to decide on whether SIMG’s Board acted to maximize
shareholder value prior to entering into the agreement.)
• 22 November 2014, Ixys can attract takeover interest, but the buyer list for the company is limited to other companies with
similar margins. Potential buyers with margins in the 30% to 40% range include On Semiconductor, Vishay Intertechnology,
Fairchild Semiconductor, Diodes Inc., and Infineon Technologies. 3 February 2015, IXYS Corporation, an international power
semiconductor and IC company, signed a definitive agreement to acquire RadioPulse.
Clean Tech South Korea • 11 December 2014, South Korean Hanwha Group plans to sell a stake in Hanwha SolarOne after the latter consolidates with
Hanwha Q Cells. Hanwha Chemical will own a 94% stake in the consolidated entity after Hanwha SolarOne acquires Hanwha
Q Cells. Hanwha Group could sell up to 44% stake in Hanwha SolarOne, except a controlling 50% stake to secure
management rights. The 44% stake is valued at KRW661.5B (US$593.3M), applying the share price in the transaction with
Hanwha Q Calls.

Media
31
Advertising &
Marketing
United
Kingdom
• 16 January 2015, Exterion Media Group, the PE-backed, UK-based, outdoor advertising firm, is exploring strategic options,
including a potential acquisition. The Platinum Equity portfolio company is working with Royal Bank of Canada in its acquisition
search. The European assets of Clear Channel Outdoor Holdings have been flagged as one possibility. Those assets have
previously been reported to be worth more than US$2.5B, with JC Decaux and other PE firms reportedly interested.
• 23 September 2014, The PE group Apax Partners is likely to consider selling or floating its Auto Trader Group Ltd vehicle
advertising business. Apax had discussions with advisers regarding strategic options for the UK-based classified advertising
magazine and website publisher. Those options could include selling Auto Trader to a rival buyout group or a flotation. The
potential sale value is estimated to be around £2.0B(€2.6B). However, Apax has yet to make a decision and a sale might not
take place until 2015. Auto Trader posted EBITDA of £143.9M for the year ending March 2013 on revenues of £251.8M.13
January 2015, Apax Partners has hired Deutsche Bank and Bank of America Merrill Lynch (BAML) to advise on a potential
sale or flotation of its classified advertising business Auto Trader. Apax, a PE firm, had been talking to potential advisers since
2014. 1 February 2015, U.S. private equity firm Hellman & Friedman is preparing a £2.0B takeover bid for Auto Trader.
• 4 September 2014, Fetch Media could be an attractive target for a strategic such as Rocket Fuel, given its niche focus on
mobile branding. It is also possible that Yahoo could take a look at Fetch in its mission to become, “a mobile first company”, but
so far neither Rocket Fuel nor Yahoo have formally approached the agency. Facebook is also a major player in the fast-
consolidating mobile advertising space that could be a potential acquirer. Fetch Media, which helps companies hatch their
mobile marketing strategies and offers services in creating mobile applications, media planning, buying, tracking and analysis,
has a projected revenue of US$130.0M for FY14. Its clients include eBay, Ben & Jerry’s, Expedia, Hotels.com and StubHub in
the U.S., Supercell in Finland, and Naver in South Korea. Despite expectation to significantly cross the US$100.0M revenue
threshold, Fetch is not planning an IPO. It is more likely to sell to a strategic or continue operating as a private stand-alone
company. The UK company’s revenues are growing at a rapid pace such that in the next 12 months. It could consider a tuck-in
acquisition or a joint venture with an analytics solutions firm, a credit service or a small firm that can expand the agency’s
desktop or experiential capabilities as intense consolidation is expected in both the supply and demand side of mobile
advertising. (6 November 2014, Dentsu Aegis Network has acquired London-based Fetch Media, an international mobile
specialist, for an estimated US$48.0M, and aims to grow the agency around the world, particularly in North America.)

Media
32
Advertising &
Marketing
Italy • 27 February 2015, DigiTouch, an Italian digital advertising provider, will use most of the proceeds from its imminent IPO to
pursue acquisitions of smaller peers. The group will aim to raise between €10.0M - €5.0M in a primary issuance on the AIM
segment of the Milan Stock Exchange, with the listing expected on 16 March 2015. The management intends to allocate € 3.0M
- €6.0M of IPO proceeds for one or two deals in Italy to consolidate its position in the domestic market, and €6.0M - €8.0M to
support international expansion through acquisitions. Advanced discussions are already under way with three players in Italy.
One or two deals could be carried out in Europe wherein Germany, France and Eastern Europe are of particular interest.
Targets of choice could be providers within the performance advertising segment rather than mobile. Given the highly
specialized nature of the market, management does not use advisors when assessing opportunities domestically but it may
consider external help once on the lookout for acquisitions abroad. DigiTouch has recently executed two acquisitions in line
with the plan to accelerate growth and market penetration. In 2014, it took over 51% of Italian performance marketing provider
Performedia, paying €2.2M through a loan provided by Unicredit. At 30 September 2014 the group had YTD sales of €10.1M
and EBITDA at €2.1M. The company has three core businesses -- performance advertising, mobile marketing and advertising,
and mobile profiling.
Spain • 15 December 2014, Dorna, a Spanish sports management, media and marketing company, could come to market in the first
half of 2015. A dual track process is possible. Bridgepoint, owner of Dorna alongside Canada Pension Plan Investment Board
(CPPIB) and management, however said the group is not for sale. Although potential buyers have been expressing interest in
Dorna, Bridgepoint expects the business to continue growing. Before going ahead with a sale, Bridgepoint is closely watching
the outcome of the auction process for its investment, Infront Sports & Media, which is reaching its final stages. Chinese
conglomerate Wanda Group and U.S. PE firm Providence are considering bids for the Swiss sports marketing group.
Bridgepoint has mandated Lazard to run the sale. The asset could be valued at more than €900.0M. Bridgepoint has yet to
mandate advisers to sell Dorna. The asset is likely to attract large cap funds and an IPO in Spain would be unlikely. In 2012,
Dorna generated revenues of €201.0M. EBITDA is in the range of €75.0M and its latest EBITDA is likely to be significantly
higher. The company’s debt is around 6.5x to 7x EBITDA.
France • 3 November 2014, Sapient, a Massachusetts-based advertising firm, is being eyed by French advertising group Publicis and
the acquisition talks are ongoing. An acquisition of Sapient, which specializes in digital advertising, could help Publicis compete
against new technology savvy firms tapping business in the industry. (6 February 2015, Publicis Groupe completed the
US$3.7B acquisition of the Sapient organization.)

Media
33
Advertising &
Marketing
Switzerland • 26 April 2014, Infront Sports & Media AG, the Switzerland-based sports marketing company, could be sold by its sponsor
Bridgepoint. Infront was bought by Bridgepoint in 2011 for an estimated consideration of €550.0M. 13 August 2014, European
sports representation company Infront Sports & Media is reported to be on the block with owners looking for a value of
US$1.0B. 5 September 2014, Swiss sports marketing company Infront Sports & Media AG has been approached by a number
of potential new investors as it seeks to fund further expansion. 13 October 2014, The auction of Infront Sports & Media, a
sports marketing company based in Switzerland, has attracted the interest of PE firm CVC Capital Partners. 26 November
2014, Two American and two Chinese groups are considering bids for Swiss sports marketing company Infront Sports & Media
AG, whose owners are seeking a valuation of over €900.0M (US$1.1B). 20 December 2014, Dalian Wanda has emerged as
the frontrunner in the auction for Infront Media, the Swiss sports marketing company. Wanda, the Dalian-based property
conglomerate, is nearing a deal that would see it pay roughly €1.0B. (10 February 2015, Dalian Wanda Group agreed to buy
Infront Sports & Media AG from Bridgepoint in the deal valued at €1.05B (US$1.2B). Zug, Switzerland-based Infront is a sports
marketing company. Lazard provided financial advice to Bridgepoint.)
China • 14 January 2015, Guangdong Advertising, one of China’s major integrated advertising companies, plans to acquire Chinese
search engine marketing (SEM) and search engine optimization (SEO) companies. The Guangdong-based advertising
company will spend several billion CNY to acquire SEO and SEM targets in 2015 to tap into the Chinese online advertising
sector, given that Chinese companies are increasingly reliant on online advertising for marketing and brand management. Each
target should achieve a yearly net profit of at least CNY10.0M (US$1.6M) and have developed big data technologies to offer
tailor-made marketing solutions. Preference will be given to companies with advertising businesses in Beijing, Shanghai, and
Guangzhou. GDAD is interested in Chinese SEO and SEM companies that are similar to BesTV-controlled adSage and Qihoo
360-controlled Shanghai MediaV Advertising. The company welcomes financial advisors to recommend targets. Synergies
could be obtained from GDAD’s large client portfolio and the targets’ know-how in online marketing. Acquisitions can be
financed via new share issuance after the company has nailed down the targets.

Media
34
Advertising &
Marketing
Japan • 10 December 2014, As part of its mid-term growth strategy, Asatsu-DK (ADK), the listed Tokyo, Japan-based advertising
agency plans to beef up its digital solutions business or consumer activation strategy, including analysis of big data on
consumer behaviour across various fields, such as buzz marketing. It could strengthen this area through acquisitions. Likely
targets include a big data analysis service provider or a company with expertise in apps on big data solutions. An operator of an
online advertising business could also be considered as this is also an important part of its digital solution segment. The
business environment for advertising has changed significantly as revenues from the Internet have expanded while those from
TV have stalled. ADK is opting for selective approaches and focus on big data analysis, rather than seeking general
acquisitions of internet advertising players. ADK’s revenues from the digital advertising segment generated JPY11.2B for the
year ended December 2013, up 24.3% from a year earlier. While ADK has already built a presence in nine regions across Asia
as well as the U.S. and Europe, the company now considers three Asian — Indonesia, Thailand and China — as having much
growth potential, among others. The company typically opts to work with Japanese companies advancing into overseas
markets, but it could establish a joint venture partnership with local firms to ramp up local business. Acquisitions of local firms
could also be on the cards. The company posted revenues of JPY342.8B and a net profit of JPY3.4B for the year ended
December 2013. This compares to JPY350.8B in revenues and JPY2.8B in net profit a year earlier.
South Korea • 8 January 2015, KT Corp, the South Korean listed telecom company, could dispose of content provider units and its
advertising unit. KT's consolidation of its media content provider can be seen as a starting point for its move to restructure its
media businesses. KT will absorb KT Media Hub into its department. KT OIC and KT Innoedu, education content providers, and
Nasmedia, an advertising unit, could be the targets to be cleared or disposed of. KT could also dispose of KT CS, a listed
customer service provider, and KTIS, a listed phone number information service provider.
• 18 December 2014, SK Planet, a platform and content company of South Korean SK Group, has placed its advertising unit for
sale. SK Planet has reportedly put M&C division (Media & Communication) for sale. The sale could reap about KRW200.0B
(US$182.5M). Daehong Communications, Lotte Group's advertising division, has hired PwC South Korea to bid for the peer.
Daehong is carrying out due diligence in the sale at the moment. An unspecified Chinese company has also shown interest in
buying the unit. SK Planet is a wholly owned subsidiary of SK Telecom, a listed South Korean mobile network carrier.

Media
35
Advertising &
Marketing
South Korea • 16 September 2014, Cheil Worldwide, a listed South Korean advertising company, could make additional acquisitions in its
sector. The likelihood of a potential acquisition of an international advertising agency by Cheil Worldwide is very high. Cheil
Worldwide has been continuing to review a potential acquisition of global players in the digital marketing field. A deal is
expected in the first half in 2015. (25 November 2014, South Korean advertising group Cheil Worldwide has acquired a stake
in Iris, the UK agency that created London 2012 Olympic mascots Wenlock and Mandeville. Terms of the deal were not
disclosed, though the company has bought a significant initial stake in Iris and has the option to acquire 100% of the business
over the next five years.)
United States • 28 February 2015, Comcast is holding discussions to acquire Visible World, the New York-based advertising company. The
company has already invested in Visible World through its venture unit, and further discussions could lead to a partnership.
Visible World helps other ad companies target their ads at certain audiences, based on data from cable boxes and from other
sources; it also has a software offering via subsidiary AudienceXpress. The New York-based firm has raised US$33.0M in
funding to date from investors including Adams Street Partners, AllianceBernstein, Dawntreader Ventures and Grey Ventures.
• 16 December 2014, Interested parties are pursuing Graham Media as its stations are in strong markets and it either has to get
bigger to have greater leverage with pay-TV providers, or think about a sale. Most sellers are likely to be smaller companies,
many of them family-owned having seven or eight stations, with US$50.0M-US$100.0M in cash flow. While large media
conglomerates have noted in the last two quarters that national television advertising sales have declined, and will continue to
dip in the first part of 2015, a similar situation is likely to develop in local advertising. M&A in the space is expected to continue
to be driven by the need for greater leverage in retransmission negotiations with pay-TV providers. As for buyers, media giant
Hearst Television, owner of 29 stations, is another company to keep an eye on during 2015, as it acquired two stations divested
in the just-approved LIN Television-Media General deal. Gannett and Nexstar could also be active. Some deals could also be
driven by the anticipation that 2016 will be a record year for political ad spending.
• 21 October 2014, Yahoo is in discussions to purchase BrightRoll, a digital advertising service, in a deal that could range in
value from US$500.0M to US$1.0B. The price is expected be in the US$700.0M to US$725.0M range. Reportedly term sheets
have been signed. Currently, Yahoo is being pressured by Starboard Value (an activist investor interested in Yahoo merging
with AOL), to dismantle the company or sell it, which might impact negotiations for BrightRoll. BrightRoll could offer Yahoo solid
competition against Google’s YouTube regarding video ad volumes. BrightRoll works across mobile, web and connected
television devices, serving as intermediary for publishers and advertisers. (12 November 2014, Yahoo acquired BrightRoll for
US$640.0M. BrightRoll is a video ad tech company. It works across the web, mobile and connected TV devices and uses
algorithms to help determine which ads to run against the videos it hosts.)

Tmt cf deal_tracker_march_2015

Tmt cf deal_tracker_march_2015

Recommended

Recommended

More Related Content

What's hot

What's hot (15)

Similar to Tmt cf deal_tracker_march_2015

Similar to Tmt cf deal_tracker_march_2015 (20)

More from Milind Kinker

More from Milind Kinker (7)

Recently uploaded

Recently uploaded (20)

Tmt cf deal_tracker_march_2015