July 10, 2017 – Solganick & Co. has issued its latest Digital Media M&A Update for Q2 2017. You can download the full report here: Solganick – Q2 2017 Digital Media Report
Solganick & Co.'s Q2 2017 Digital Media M&A Update reported a total deal value of USD $3.82 billion for the sector, marking a 33.10% increase from Q1 2017, despite a 21.12% decrease in the number of deals to 56. Ad Tech was the dominant sub-sector, comprising 57.14% of deal count and 72.77% of deal volume, with strategic buyers driving 58.37% of the deal volume. This M&A activity, both globally and within digital media, was largely motivated by companies seeking to overcome limited organic growth options and adapt to ongoing business model transformations.
The following summarizes the highlights of the report:
- Global M&A activity in Q2 2017 was USD $793.9 billion – deal value increased by 6.36% compared to Q1 2017.
- The first six months of 2017 proved the middle market’s most productive first half in 10 years, inking 5,620 deals, according to Thompson Reuters.
- Global M&A activity has been motivated by limited organic growth options and the need to address the business model transformation that is occurring across industries. Example: Amazon’s acquisition of Whole Foods Market.
- The total Digital Media M&A deal value in Q2 2017 was USD $3.82 billion – an increase of 33.10% compared to Q1 2017. The total number of deals fell by 21.12% to a total of 56 deals. The average deal value in Q2 2017 was USD $68.21 million.
- Ad Tech made up the largest portion of the Digital Media sector with 57.14% of deal count and 72.77% of the deal volume in Q2 2017. The deal count for eCommerce was 14 – accounting for 25% of all digital media deals in Q2 2017.
- Strategic buyers accounted for 58.37% of the deal volume and a total deal value of USD $2.23 billion.
- EV/Revenue Multiples Range: 1.02x to 4.09x
You can download the complete report here: Solganick – Q2 2017 Digital Media Report
Solganick & Co. is a Technology and Digital Media focused M&A Advisor and Investment Banking firm. For more information regarding a transaction or the digital media industry sector, please contact us.