GCA Altium Digital, Media & Internet Monitor Q2 2021

GCA Altium is pleased to provide you with the Q2 2021 edition of our Digital, Media & Internet Monitor, which offers a quarterly update on global market data, sector valuations and M&A activity.
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The GCA Altium Digital, Media & Internet Monitor is tailored to the needs of busy executives and investors seeking a comprehensive overview of the M&A and valuation landscape, trend analyses and insights into the current transaction environment.

Key developments in Q2 were:

  • Share price performance was stable across almost all subsectors over the past quarter. Other Online Marketing (+11.1%), Classifieds (+10.0%), and Payment (+10.0%) outperformed the rest of the asset classes. Other positive performers in the last three months were Social Networks and Communities (+4.6%), as well as Marketplaces (+3.4%). Since Jan-20, Inventory-based e-commerce has experienced the strongest returns (+122.7%), followed by Marketplaces (+57.3%), as well as Gaming (+51.6%), while Travel (0.4%) has almost fully recovered.
  • EV/EBITDA valuations (2021) indicated stable performance for most subsectors, with Payment (+15.9%), Marketplaces (+8.4%) and Classifieds (+7.6%) experiencing the highest gains.
  • EV/Sales valuations (2021) pointed towards slight upward trends for almost all sectors. Payment showed the largest increases (+8.4%), followed by Other Online Marketing (+3.9%) and Travel (+2.6%), while Content Monetization has experienced a significant decrease (10.8%).

* Please note that valuation metrics (EV/EBITDA and EV/Sales) are positively affected by downward adjustments of analysts’ consensus of the companies’ forward-looking financial profiles (e.g. travel sector).

Key M&A and IPO activity in Q2 were:

  • The number of deals in Q2 2021 was 805 compared to 465 in Q2 2020, indicating a growth of +73.1% y-o-y.
  • The total sector deal value (disclosed) of EUR 67.9bn was significantly higher than last quarter, as well as the previous year’s first quarter, with a total sector deal value of EUR 14.5bn. The increase was driven by a handful of very large transactions, including the acquisition of Nuance by Microsoft for EUR 16.6bn, the acquisition of BlueYonder by Panasonic (Connected Solutions Company) for EUR 5.9bn and the acquisition of McGraw Hill by Platinum Equity for EUR 5.6bn.
  • 26 sector-relevant IPOs were completed in Q2 2021 compared to 2 in last year’s second quarter. The most relevant IPOs were Marqeta, the US-based operator of a cloud-based open application programming interface platform delivering card issuing and transaction processing services, About You, the DE based fashion and technology company operating fashion and lifestyle e-commerce platforms in Europe, as well as Victorian Plumbing 1), the UK-based online retailer of bathroom products and accessories.
  • Sector valuations have shown significant positive changes mainly driven by the COVID-19 pandemic rebound. Also M&A and IPO activities have shown strong rebounds from a rather weak 2020.

 

Note: 1) Largest ever AIM IPO advised by GCA Altium; Multiples based on latest available financial statements
Source: Capital IQ (01-Jul-2021); Mergermarket

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