Media M&A Heats Up in Q1 2017
Despite modest increases in activity, deal value is way up, reports JEGI.
The first three months of 2017 saw an uptick in M&A deal value across both B2B and consumer media as well as the exhibitions and conferences sector, according to investment bank JEGI's latest report.
Despite tracking roughly the same number of deals in the B2B media and tech space as the same period last year (26 vs. 25, respectively), JEGI reports that the combined value of those deals more than tripled, from $262 million in Q1 2016 to $899 million in Q1 2017. This was primarily driven by Jira parent company Atlassian's $425 million purchase of competitive productivity software platform Trello. Another major deal, reports JEGI, was the March sale of Incisive Media's Insight division to French-based publisher Infopro, for $150 million.
The consumer media and technology space saw a similar rise on deal value despite a less-dramatic jump in the number of individual transactions. In Q1 2017, JEGI tracked 66 deals worth a combined $3.52 billion, compared to 54 deals at $939 million over the same period last year. Leading the way was Amazon's purchase of its biggest competitor in the Middle East and Africa, Souq.com, for $650 million. Other significant deals included Priceline/Kayak's $550 million acquisition of Momondo Group, and German-based Hubert Burda Media's $350 purchase of UK special interest publisher Immediate Media.
In the exhibitions and conferences space, JEGI tracked one less deal than it did in Q1 2016, but the trend of increased deal value continues, up 117 percent in Q1 2017 to $458 million. The major transaction here was Informa's $133 million acquisition of Yachting Promotions, a series of boat shows, from Active Interest Media, which JEGI represented in the sale.