|
Why do you need "CyberValuation 2005" and what will
it do for you?
"CyberValuation 2005" brings a financial
and economic perspective to the value of Technology-related businesses
by presenting relevant data on significant transactions during 2004.
The publication provides revenue valuation multiples for ISP/Portal,
B2C, B2B, Infrastructure,
and Telecommunication businesses.
Internet Service Provider/Portal (ISP/Portal)
Similar to 2003, portal companies provided most of the momentum in the sector. Google was the main attraction with its 2004 IPO. The attractiveness of paid search with along with strong online advertising spending drove portal valuations.
| Entity |
Buyer |
Date |
Transaction
|
Transaction
Amount
($ millions) |
Product or Service |
|
|
|
|
| Google |
n/a
|
19-Aug-04
|
IPO
|
1,666.0
|
Internet search engine |
| MarketWatch |
Dow Jones
|
14-Nov-04
|
M&A
|
519.0
|
Business/financial news website, analytical investment tools |
| Interactive Search Holdings |
Ask Jeeves
|
06-May-04
|
M&A
|
395.1
|
Web search engines |
Marktplaats.nl
|
eBay
|
10-Nov-04
|
M&A
|
290.0
|
Online classifieds in the Netherlands |
Shopping.com
|
n/a
|
21-Oct-04
|
IPO
|
116.8
|
Online price comparison website |
Business-to-Consumer (B2C)
Heavyweights Yahoo!, eBay, and IAC/InteractiveCorp spent the past year establishing an international presence with major acquisitions in China , India , Korea , and Germany . This international activity helped to boost the average trailing revenue multiple for this sector as compared to other technology sectors.
| Entity |
Buyer |
Date |
Transaction |
Transaction
Amount
($ millions) |
Product or Service |
|
|
|
|
Orbitz
|
Cendant
|
12-Nov-04
|
M&A
|
1,200.0
|
Online travel reservations |
Kelkoo
|
Yahoo! |
04-Jul-04
|
M&A
|
577.0
|
Online comparison shopping service in Europe |
TradeWeb Group
|
Thomson
|
08-Apr-04
|
M&A
|
385.0
|
eProcurement solutions for oil, gas and chemicals |
InterTAN
|
Circuit City Stores
|
31-Mar-04
|
M&A
|
284.0
|
Consumer electronics retailer |
MusicMatch
|
Yahoo!
|
14-Sep-04
|
M&A
|
160.0
|
Personalized music software/services |
Business-to-Business (B2B)
A surge in IT spending contributed to increased activity in the B2B sector. The year was marked with Oracle's protracted acquisition of PeopleSoft. Revenue multiples were similar to 2003 levels.
| Entity |
Buyer |
Date |
Transaction |
Transaction
Amount
($ millions) |
Product or Service |
|
|
|
|
ChipPAC
|
ST Assembly Test Services
|
10-Feb-04
|
M&A
|
1,600.0
|
Semiconductor packaging, test, and distribution services |
Infonet Services
|
BT Group PLC
|
08-Nov-04
|
M&A
|
965.0
|
Managed network communications services |
American Management Systems
|
CGI Group
|
03-May-04
|
M&A
|
858.0
|
IT consulting |
Seisint
|
LexisNexis |
01-Sep-04
|
M&A
|
775.0
|
Information management products and services
|
ACS (Certain Assets)
|
ManTech International
|
04-Mar-04
|
M&A
|
605.0
|
IT outsourcing firm |
Infrastructure
The Infrastructure sector had the largest volume of transactions, including 13 IPOs and several large transactions. Cisco, IBM, and Level 3 Communications were active buyers, acquiring multiple companies. A continued interest in security companies was evident.
| Entity |
Buyer |
Date |
Transaction |
Transaction
Amount
($ millions) |
Product or Service |
|
|
|
|
NetScreen Technologies
|
Secure Blue
|
16-Apr-04 |
M&A
|
4,000.0
|
Firewall and VPN manufacturer
|
Artisan Components
|
Magma Design Automation
|
23-Aug-04
|
M&A
|
913.0
|
Physical intellectual property (IP) components
|
Andiamo Systems
|
Siebel Systems
|
19-Feb-04
|
M&A
|
722.0
|
Storage switching products manufacturer |
NPTest
|
n/a |
28-May-04
|
M&A
|
678.0
|
Testing equipment for the semiconductor industry |
Corel
|
Vector Capital
|
09-Jan-04
|
M&A
|
625.0
|
Intel-based virtual computing software |
Telecommunications
The Telecom sector began to show new signs of life again on the transaction front. Large scale consolidation began with the merger of Cingular and AT&T Wireless. Valuation multiples rose for the first time in four years.
| Entity |
Buyer |
Date |
Transaction |
Transaction
Amount
($ millions) |
Product or Service |
|
|
|
|
AT&T Wireless
|
Cingular Wireless
|
17-Feb-04
|
M&A
|
41,000.0
|
Cellular telephone service provider |
NEXTEL
|
Sprint
|
15-Dec-04
|
M&A
|
35,000.0
|
Telecommunications providers
|
BellSouth ( Latin America Opns.)
|
Telefónica
|
07-Mar-04
|
M&A
|
5,850.0
|
Cellular telephone network |
PanAmSat
|
Kohlberg Kravis Roberts |
20-Apr-04
|
M&A
|
4,300.0
|
Video signal and data satellite distributor |
NextWave (Spectrum Licenses)
|
Verizon Wireless
|
01-Jul-04
|
M&A
|
3,000.0
|
Spectrum licenses |
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