JEGI Corporate Capabilities Brochure

Page 1

Since 1987

Independent Investment Banking for Media, Information,

Marketing Services & Technology


traditional media • digital migration experiential marketing • e-commerce

multi-platform • convergence • rich media audience fragmentation

mobile media

cookies • Web 2.0 • social networking • podcasts

widgets • behavioral • targeting • bloggers • SaaS cost per click

vertical search

web-tracking

key words • ad networks • contextual networks multi-channel • e-gaming • cost-per-action • out-sourcing “More than a decade into the digital revolution, the pace of change has

not slowed. But disruption generates opportunity for media, information, marketing services and technology companies with the strategic vision

and resources to understand and profit from it.

As the leading investment bank serving these rapidly evolving sectors, our goal at JEGI is to continue providing the insight, expertise and deal execution that build value for our clients, just as we have for nearly

25 years.”

wilma jordan founder & ceo the jordan, edmiston group, inc.


Media

Information

Marketing Services Technology

Business leaders across the media, information,

marketing services and technology sectors recognize

JEGI’s unparalleled transaction experience, mile-deep industry expertise, and extraordinary network of

contacts, spanning key industry sectors and capital

markets. They turn to JEGI as the partner of choice

JEGI - At the Core of the Market Diversified Media, Information and Marketing Companies

Major Interactive and Technology Companies

Emerging High-Growth Companies

Private Equity, Venture Capital and Debt Investors

for sell-side Mergers & Acquisitions advisory services, buy-side M&A advice, debt and equity financing, and other strategic advisory services.

Whether selling entrepreneurial and emerging

high-growth businesses, divesting non-core assets of

diversified strategic companies, working with the major

interactive and technology companies, representing

the portfolio companies of leading private equity and

venture capital firms, or accessing capital markets,

clients particularly value JEGI’s independent position at

the core of the market.

recent representative jegi transaction

has acquired

a global digital marketing services and technology company

“When Hearst opted to broaden the products and services we offer to more fully capitalize on the growing digital marketing needs and opportunities of our clients, our company’s brands and advertisers, we turned to The Jordan, Edmiston Group to help us with this endeavor. JEGI exceeded our expectations and assisted us in targeting iCrossing as one of a number of viable acquisition candidates in the interactive marketing services and technology spaces. Throughout the process that followed, JEGI’s combination of skills, including its deep market knowledge and overall M&A acumen, were hugely helpful in successfully completing this transaction. Our thanks to the entire JEGI team for an exceptional job.” John Loughlin, EVP & General Manager Hearst Magazine Group

jegi timeline

1987

In October 1987, The Jordan, Edmiston Group, Inc. (JEGI), led by CEO Wilma Jordan, opens its doors for business.

In the late 1980’s, the firm focuses primarily on serving the consumer magazine market, including Texas Monthly, Chartwell Publishing, and Spin magazine.


Media The dual forces of innovation and user demand for “what I want, when and where I want it” are continuing to drive the evolution of the multi-platform media environment.

As the leading M&A advisor to middle-market emerging and entrepreneurial companies commercializing new products and services…to major global B2B and B2C media companies redeploying their capital into

higher growth areas…to private equity firms seeking attractive investments…JEGI sets the bar for transactions completed, as it helps companies achieve their strategic objectives in the media sector.

Through its deep expertise and wide network of media industry relationships, JEGI routinely completes more media transactions than any other firm of any size.

case study

has sold

“Forbes’ experience with The Jordan, Edmiston Group in the sale of Investopedia was impressive. They quickly grasped the essence and value of the company and identified a range of serious potential buyers. The process was efficient, and the outcome of the sale to ValueClick clearly was very beneficial to all involved.” Tim Forbes, President & COO Forbes, Inc.

a leading financial information and investing education website

to

for $42,000,000

forbes, a leading financial media company, decided to divest Investopedia, a major online destination for financial information serving investors and finance professionals. Under Forbes’ ownership, the business performed very well, consistently growing traffic and revenue, while developing compelling new products. Forbes sought a focused and highly efficient process to quickly identify and evaluate interest from qualified strategic buyers. JEGI developed a thesis that interested parties would include not just the other major financial publishers, but also companies focused on online performance-based advertising.

JEGI identified one such group, ValueClick, as a leading buyer for the business as it was looking to acquire great content and large audiences in the financial services sector. ValueClick was also attracted to Investopedia’s experienced management team and immediate synergy opportunities with several of its business units including ValueClick Brands and ValueClick Media. The transaction was completed at an attractive valuation – $42 million in cash on $10 million in revenue – and in a record amount of time, less than three months from start to finish. Both Forbes and ValueClick were highly satisfied with the transaction, and the process JEGI led succeeded in meeting Forbes’ key transaction goals.

In the early 1990’s, the firm expands its market coverage to include B2B magazine publishers, such as Capital Cities/ABC, The Economist Group, and Hanley-Wood.

1990

In the late 1990’s, JEGI forms the foundation of its current executive team. Bill Hitzig, COO, joins in 1996; followed by Managing Directors Scott Peters and Richard Mead in 1997.

JEGI continues to grow and expands its advisory practice to include exhibitions and conferences, and increasingly online media. Some of the firm’s early exhibition clients include dmg world media, Pearson, and Reed Elsevier.


Select Recent JEGI Media Transactions has sold

has sold a leading financial information and investing education website

a leading local media and marketing services provider

to

a division of

has sold

has sold the U.S. assets of

a division DMGT plc

has sold its ALBERTA GIFT SHOW and MONTREAL GIFT SHOW

to

to

a division of

INTERIOR DESIGN, FURNITURE/TODAY and SIX SISTER PUBLICATIONS and RELATED ONLINE ASSETS

to

ELECTRONIC DESIGN NEWS, DESIGN NEWS, TEST & MEASUREMENT WORLD and PACKAGING DIGEST

to

for $42,000,000

E5 GLOBAL MEDIA a division of

has sold

a new entity formed by and

has sold LIBRARY JOURNAL and SCHOOL LIBRARY JOURNAL

to

the leading business-to-business media brand focused on the information needs of c-level and senior finance executives

to CFO PUBLISHING HOLDINGS, INC. a portfolio company of

PLURIBUS CAPITAL

a division of

has sold has sold its

has acquired The Hollywood Reporter, Billboard, Adweek, Brandweek, MediaWeek, Clio Awards, Backstage, Film Journal International, and Film Expo Business

from

TELEVISION GROUP a leading source of news, features and advice for developers and IT professionals

to

a portfolio company of

to

an affiliate of

TIMES PUBLISHING COMPANY has announced the sale of a division of DMGT plc

has sold

the premier provider of intelligence and analysis on state and local government

the premier provider of congressional news, insight and analysis

to

to

has sold

has sold

HARTCOURT RELIGION PUBLISHERS a producer of religious education series for elementary school students and religion programs

THE CALIFORNIA GIFT SHOW and related assets

to

to

Vision Events a leading provider of specialized marketing events for the IT sector

to

a leading online B2B media company providing e-newsletters, web sites, webinars, and live events

has been sold to

has sold its

NORTH AMERICAN CONSUMER HOME SHOWS to

a portfolio company of

a wholly owned subsidiary of THE ECONOMIST GROUP

has sold

a division of DMGT plc

for $53,000,000

an innovative consumer health search engine

7

a leading publisher of online communities for parents and parents-to-be

has acquired the remaining 51% interest in

has been sold to

has been sold to

GEORGE LITTLE MANAGEMENT for

$155,000,000

COURTENAY COMMUNICATIONS

has sold the leading custom publisher serving the U.S. community hospital marketplace

has been sold to

has sold

has sold has sold

a group of seven Canadian industrial and manufacturing tradeshows and iMARKETINGNEWS magazines and related online and newsletter assets

to

CMP ENTERTAINMENT MEDIA

to the leading teen-oriented user generated content site

to

to a H.I.G. Capital portfolio company

for

$47,000,000


Information Business information and market intelligence products and services have become an integral part of enterprise

workflow across fields as diverse as financial services, healthcare delivery, education services, and energy transmission. These information tools are highly specialized and increasingly delivered via the Internet for real-time decision

support, helping companies leverage content and knowledge, drive revenues, manage talent, and allocate resources.

As global information companies actively pursue revenue and profit growth by acquiring information products and services, JEGI has become the leading independent investment banking firm serving this sector, with its clients spanning providers of data and analytics for market, marketing and business intelligence.

CONGRESSIONAL QUARTERLY, INC.

has sold

the college textbook publisher and online reference information service provider

case study “The sale of CQ Press was an impressive piece of work on the part of JEGI, and I suspect nobody who knows of the firm’s professional talents would be surprised at a successful transaction outcome. I feel we were most fortunate to have JEGI on our side in this effort, both as to those professional talents that proved so beneficial and as to the enjoyment generated by the experience of working with the firm. So thanks to the JEGI team; it was indeed a pleasure.” Robert W. Merry, President Congressional Quarterly

to

When congressional quarterly, the parent company of cq press, a leading publisher of

college textbooks and online information on political science and mass communication content, sought to refocus its portfolio, it turned to JEGI.

After a seamless auction process that added value in each round, CQ Press was acquired by sage, an independent publisher with

complementary assets. Not only did the transaction deliver an EBITDA multiple that exceeded client expectations, but the senior management team, which was a key component to the valuation, was extremely pleased with the new ownership group.

In February 2000, JEGI Capital is launched to invest in software, enabling technology, and infrastructure companies servicing the media and information industry.

In 2000, JEGI solidifies its position as the leading M&A advisor for the media and information industry, closing five of the top 20 transactions in its sectors, including the sales of Duke Communications and Kennedy Information.

In the early 2000’s, JEGI’s clients include many of the leading global media and information companies, such as: Daily Mail & General Trust; Dow Jones; Economist Group; Hearst; Pearson; Penton Media; Primedia; Reader’s Digest; Reed Elsevier; VNU (now Nielsen); and Ziff Davis Media.

2000


Select Recent JEGI Information Transactions has sold a leading provider of Banking Information and Analytics

has been sold to

a provider of content, data, advertising, and career services for the oil and gas industry

a leading distributor of company data and public filings for equities, mutual funds and a variety of other pubicly traded assets

has been sold to

has secured $12 million in growth capital from

the leading business-to-business media brand focused on the information needs of c-level and senior finance executives

has been sold to

to CFO PUBLISHING HOLDINGS, INC. a portfolio company of

a unit of

for $39,000,000

TIMES PUBLISHING COMPANY has announced the sale of the leading competitive research, data, and analytics provider to the mutual fund and asset management industries the premier provider of congressional news, insight and analysis

has sold

has been sold to

has been sold to

to an a wholly owned subsidiary of THE ECONOMIST GROUP

FINANCIAL MEDIA HOLDINGS GROUP

has sold

a leading provider of corporate governance, risk and compliance news, analysis, databases and events for financial and legal executives at public companies

to

has acquired

portfolio company in partnership with Jim Casella

a leading provider of technology market research, intelligence and demand generation services

has been sold to

the provider of medical information to the healthcare, pharmaceutical and biotechnology industries

a leading healthcare newsletter publisher in conjunction with The John Hopkins University and The University of California at Berkeley

has been sold to

to

CONGRESSIONAL QUARTERLY, INC.

has sold

the college textbook publisher and online reference information service provider

a leading business information provider serving the mutual fund, asset management and corporate board markets

has been sold to

in conjunction with

&

a leading social media analytics company

has completed a tender offer for the outstanding shares in

has been sold to

a leading information provider to the aviation industry

a division of the TNS Group

to

a leading database provider of robust product and pricing solutions

has been sold to the leading online marketplace for buyers and sellers of products and services

the premier research, data and analysis firm for the temporary staffing industry

GF Capital Management & Advisors, LLC

a leading provider of education and career guidance

has sold

PHILLIPS INVESTMENT RESOURCES the leading information provider of high-value investment advice to the self-directed investor market

a leading provider of anti-money laundering information, conferences and training

has been sold to

a Pfingsten Partners portfolio company and a leading provider of B2B media for the financial services, art and industrial markets

has been sold to

to a specialist in anti-money laundering and fraud detection technology

a Wind Point Partners portfolio company in partnership with CEO William F. Reilly

the premier provider of business intelligence for the international trade and transportation industry

a leading developer of drug information databases, software, and clinical information solutions

a leading information provider to the IT market

has been sold to

has been sold to

has been sold to

a world-leading publisher of scientific, technical and medical information products and services

a portfolio company of NAUTIC PARTNERS LLC and ALTA COMMUNICATIONS

has been sold to

for

$152,000,000


Marketing Services Advertising, direct marketing, promotions… Marketing Services drive commercial success, whether through traditional media, such as magazines or direct mail, or through rapidly evolving digital media and e-commerce channels.

Companies in this sector support B2B and B2C marketers in planning and executing their media and marketing initiatives, including advertising development and delivery; product promotion and customer acquisition; and consumer insights and market intelligence.

JEGI is a leading M&A advisor in the Marketing Services sector. The firm serves the range of traditional marketing groups, from direct marketing and marketing information services to channel marketing, customer loyalty and corporate communications efforts.

On the digital front, JEGI works with technology-enabled service providers focused on interactive and emerging digital channels, from interactive ad networks and ad-serving, to on-line direct marketing and lead generation. Companies

in such emerging channels as out-of-home digital media and experiential marketing are also important JEGI clients.

case study the leading provider of consumer shopping predictive targeting data

has been sold to

“The Jordan, Edmiston Group did a phenomenal job – again. After selling our Acerno subsidiary in 2008 in a very successful transaction, JEGI again demonstrated their deep understanding of the market, a highly effective investment banking approach, and magnificent teamwork to deliver another great outcome for our company and our investors. The I-Behavior team could not be happier with the results and with how JEGI helped us get there – twice.” Christopher Dice, President & CEO I-Behavior

a division of

for approximately $100 million

i-behavior, a provider of proprietary consumer shopping transaction data for offline and online targeting, hired JEGI once again, to find the right buyer at the highest valuation. In 2008, JEGI sold Acerno, the I-Behavior online subsidiary, to Akamai for approximately $100 million.

JEGI worked closely with management to identify a wide range of prospective strategic and financial buyers for the sale of I-Behavior. Careful preparation and a well-managed and disciplined process engaged buyers and drove intense competition, with multiple final bidders. The ultimate buyer was WPP’s KBM Group, which saw the value in the ability to understand consumer buying behaviors, model and predict future needs, and reach the consumer at the right time with the right opportunity through the right medium. In total, the two transactions delivered a total value of approximately $200 million to shareholders on $13 million invested.

In 2004, JEGI’s executive team grows with the addition of Managing Directors Tolman Geffs and Tom Pecht. The firm significantly expands its online media and technology practice, including the sale of Bitpipe to TechTarget.

2004

In 2005, David Clark joins the JEGI team as Managing Director, helping the firm further expand its reach into marketing services, online media and technology. Key transactions include the sale of PointRoll to Gannett and Moreover to VeriSign.

In 2006, JEGI has its most active year ever, completing 30 M&A transactions, including the sale of Commonwealth Business Media to United Business Media and the sale of online video advertising solutions provider Klipmart to DoubleClick. JEGI’s global media clients include Jupitermedia, Landmark Communications, Reed Elsevier, Thomson, and United Business Media.


Select Recent JEGI Marketing Services Transactions a leading interactive marketing agency and CRM solutions provider

has been sold to

a leading full service interactive marketing agency

the leading provider of consumer shopping predictive targeting data

has been sold to

has been sold to

a leading marketing technology company providing interactive video communications

has acquired

has been sold to a division of a global digital marketing services and technology company

a division of for approximately $100 million

has sold a leading mobile messaging and marketing platform a leading research and advisory firm serving the IT industry

has been sold to

a leading online permission-based marketing and lead generation firm

to

has been sold to

the premier research, data and analysis firm for the temporary staffing industry an online behavioral targeting network

has been sold to

has been sold to

a portfolio company of for approximately $95,000,000

Intercept Interactive, Inc. operator of

an independent research company for global leaders in business and technology

has acquired from

the leader in mobile measurement

has been sold to

a premiere online advertising network

has accepted a strategic investment from

a leading information services and technology provider of fulfillment and customer relationship management solutions and a portfolio company of

a leading medical education and communications holding company

has sold a majority interest to

TINICUM CAPITAL PARTNERS, L.P. has been sold to

W

a leading provider of experiential and event marketing services

has been sold to

has sold

has been sold to

a leading provider of loyalty marketing services

has been sold to the leader in domain name asset management

to

O

R

L

D

W

I

D

E

a leading provider of lead generation and customer acquisition marketing services

has been sold to

a portfolio company of for

$58,000,000

a leading online media company focused on brand advertising sales

has sold a significant investment to

a leading social media analytics company

has been sold to

a division of the TNS Group

a leading provider of technology market research, intelligence and demand generation services

has been sold to

the premier online lead generation portal for the business software industry the largest provider of online video advertising and management solutions

has been sold to

has been sold to


Technology Technology innovations support operations and, increasingly, drive growth in the media, information, and marketing services industries. As a result, providers of technology products and services are increasingly valued partners of the companies in these sectors.

Through its broad network of industry contacts and deep understanding of the technologies that support and

surround media, information, and marketing services, JEGI helps these related technology companies find their optimal strategic paths.

Leveraging relationships across diversified media companies, major technology groups and tech-oriented investors,

including private equity and venture capital firms, JEGI often identifies and completes transactions with unexpected

“outside the box” buyers for its sell-side clients.

case study “The JEGI team helped deliver a great outcome for M:Metrics. In a very difficult market and despite unexpected challenges, they stayed focused and tenacious to get the job done with a real win for investors.” Chip Austin, Managing Principal i-Hatch Ventures

the leader in mobile measurement

has been sold to

m:metrics is the leading global provider of mobile marketing and media intelligence and well positioned to “own” the behavioral measurement market. So interest was keen as M:Metrics prepared to go to market.

JEGI worked closely with management to develop and present critical financial and

strategic materials. Its highly competitive auction drove significant value for shareholders,

and the market greeted comScore’s acquisition of M:Metrics by bidding up comScore’s stock by more than 5%.

In 2007, JEGI celebrates its 20th anniversary. Michael Marchesano, a former top executive at Nielsen, joins the firm as Managing Director, focusing on the business information sector. JEGI’s client base expands to include the leading private equity and venture capital firms that invest in media, information, marketing services, and related technologies.

In 2008, JEGI further expands its executive team with the addition of Executive VP Tom Creaser. The firm completes 17 transactions across its core sectors.

In 2010, JEGI continues to build its leadership team, elevating Adam Gross to Chief Marketing Officer and Amir Akhavan to Director. With 19 completed transactions for the year, JEGI continues to set the standard for excellence, as the premier investment bank for the media, information, marketing services and technology sectors.

2011


Select Recent JEGI Technology Transactions a leading marketing technology company providing interactive video communications

a leading distributor of company data and public filings for equities, mutual funds and a variety of other pubicly traded assets

has been sold to

has secured $12 million in growth capital from

a leading library automation software and services company

has been sold to

a leading mobile messaging and marketing platform

has been sold to

PLS PARTNERS, LLC

Intercept Interactive, Inc. operator of

an online behavioral targeting network

has been sold to

the leader in mobile measurement

has been sold to

a premiere online advertising network

has accepted a strategic investment from

a leading information services and technology provider of fulfillment and customer relationship management solutions and a portfolio company of

TINICUM CAPITAL PARTNERS, L.P. has been sold to

for approximately $95,000,000

has been sold to

an innovative consumer health search engine

has been sold to

a leading online media company focused on brand advertising sales

has sold a significant investment to

for

the premier online lead generation portal for the business software industry

the leading online marketplace for buyers and sellers of products and services

has been sold to

a division of the TNS Group

$58,000,000

has acquired

a leading social media analytics company

the largest provider of online video advertising and management solutions

has been sold to

a leading developer of drug information databases, software, and clinical information solutions

has been sold to

has been sold to a world-leading publisher of scientific, technical and medical information products and services

a leading interactive advertising technology company

has been sold to

has been sold to

for

$40,000,000


What Sets Us Apart “Our independence sets us apart, and this means we have a relentless focus on maximizing value for our clients. In fact, top management is involved through each step of every transaction.” – Wilma Jordan, Founder & CEO As founder and CEO of the most successful investment bank for the media, information, marketing services and technology sectors, Ms. Jordan has overseen the completion of nearly 500 transactions, and been instrumental in forging the firm’s reputation for excellence and integrity. “Private equity firms tap JEGI for our sector expertise. We help them complete M&A transactions, maximize the value of their assets, and deliver research and insight on industry trends and challenges.” – Scott Peters, Co-President Mr. Peters represents consumer and B2B media, business information, marketing services and online media companies in an M&A advisory capacity. “We’re in the convergence “sweet spot,” and our experience and expertise in media, information, marketing services and related technologies positions us among the thought leaders in our sectors.” – Tolman Geffs, Co-President Mr. Geffs represents online media, interactive marketing services, and technology companies, and broader media businesses seeking to expand in new media markets. “On every assignment, we marshal unmatched deal strategy and negotiating skills, with in-depth technical and financial capabilities, to structure deals that enhance value to our clients. As a result, we have the highest closing rate for M&A transactions in media, information, marketing services and related technologies.” – Richard Mead, Managing Director Mr. Mead represents B2B media, exhibitions and conferences, and business information companies in an M&A advisory capacity. “Working from a comprehensive understanding of our client’s strategy and goals, we assemble a wide range of prospective buyers for every transaction. Then we conduct a rigorous, disciplined and highly effective sale process.” – David Clark, Managing Director Mr. Clark provides M&A advisory services to traditional and technology-enabled marketing services clients, and companies in adjacent markets, such as business information, market research and application software.


“No one in a dynamic market with highly specialized products and a complex business model wants a cookie-cutter advisory relationship. Our solid credentials in core industry sectors are a major differentiator for our clients.” – Michael Marchesano, Managing Director Mr. Marchesano focuses on the firm’s leading M&A advisory practice to the B2B media, business information and education services sectors. “In the industries we cover, we go broad and we go deep, with immediate access to all key decision-makers.” – Thomas Pecht, Managing Director, Regional Office Mr. Pecht focuses on investment banking services for small- to middle-market media companies.

“Our corporate culture is built on teamwork, integrity and professionalism. And together we bring to our clients more than 200 years of combined senior-level media, information, and marketing services experience.” – William Hitzig, Chief Operating Officer Mr. Hitzig has been with JEGI since 1996 and has participated in nearly 300 of JEGI’s transactions. In addition to his business operations and legal affairs responsibilities, Mr. Hitzig’s role as COO includes oversight of JEGI’s best practices, quality control, and compliance matters. “Our ongoing commitment to a wide range of thought leadership initiatives – including annual conferences, Client Briefing newsletters, industry research reports, sector updates, and speaker presentations – is an essential element to JEGI’s approach in providing the highest level of service to its core sectors and has helped propel us to #1 in our markets.” – Adam Gross, Chief Marketing Officer Mr. Gross has over 10 years of investment banking experience and oversees JEGI’s marketing and business development functions and thought leadership efforts. “From our rigorous and disciplined process, to our unparalleled market intelligence, to the depth and professionalism of our client services team, JEGI is dedicated to a bestpractices approach to its M&A advisory services.” – Thomas Creaser, Executive Vice President, Professional Services Group Mr. Creaser is responsible for overseeing the internal operations of JEGI’s client engagements, project management, and its client services team. “We creatively approach each engagement to deliver a customized solution that maximizes value and exceeds clients’ expectations.” – Amir Akhavan, Director Mr. Akhavan provides M&A advisory services to online media, interactive marketing services and technology companies.


Our Team Sets Us Apart Sam Barthelme, Vice President

Jason Birke, Vice President

Mr. Barthelme focuses on M&A transactions in the interactive, marketing services and technology markets, as well as B2B media and information services.

Mr. Birke focuses on M&A transactions for publishing, marketing services, business information and new media companies.

Nicki Eger, Vice President, Administration Ms. Eger oversees the firm’s day-to-day internal operations, including office and healthcare administration, and database and IT infrastructure.

Thought Leadership Center for Exhibition Industry Research MC 45

Co-produced with

Digital + Exhibiting Marketing Insights 2010 Improving Exhibition Marketing Performance Through Better Digital Integration Forced to contend with a slowly recovering global economy and lingering unemployment, as well as renewed pressure to deliver bottom-line results, corporate brand-side marketers and show producers are increasingly integrating digital media into their face-to-face activities.

Attendee Program Guide INSIDE:

Findings from the 2010 Digital + Exhibit Marketing Insights report show that respondents are more actively exploring the application of digital media to their events and lining up the tools and talent to capitalize on the opportunities available.

Outsell’s Signature Event: DrivingBest Growth the Age of5Experience Digital Marketing Practicesin .......................... Co-produced with The Jordan, Edmiston Group, Inc. (JEGI) and with the support of the

In This Issue... 2010 Outsell Signature Event . . . . . . . .1 Strong Uptick in M&A . . . . . . . . . . . . . .1 Methods of Consumer Engagement . .2 Economic Outlook . . . . . . . . . . . . . . . . . .4 M&A Deal Terms: Key Findings . . . . . .6

The Right Digital Tools at the Right Time .............. 7 Event Marketing Institute, this year’s report highlights the evolution of the industry’s Outsell, the leading provider of market Approximately 1,000 of the 7,000 information companies in Outsell’s database haveapproach revenue to digital, with a special focus on the purpose of different digital tactics research and intelligence for the The information Rise of Digital Strategy in the over $10 million – a highly10fragmented industry, and The Jordan, Edmiston and martheir use across various stages in the event lifecycle. The findings reveal that the ExhibitionGroup, Industry ............................................. grew industry is finding digital, in its many forms, to be an excellent means of Inc. (JEGI) collaborated on the fourth annual ketplace. Of these 1,000, only 70 (7%) exhibition The Reality of Virtual Media ................................ 12 10% in 2010. These companies have one reach and improving efficiency. Outsell Signature Event “Driving Growth in over increasing the Age of Experience,� held September 29 to or more of the following key characteristics: The Big Picture: Digital vs. Traditional Spend ...... 15 October 1 at the beautiful Ritz-Carlton, Key 1) niche focused (Onvia, K12) As or expected, scale respondents report an increasing use of digital media across the board, Biscayne, Florida. Promotional Performance and ROI...................... 18 focused (Pearson, Thomson Reuters, Cengage); yet some channels are more frequently leveraged than others. Interestingly, exhibition 2) acquisitive and aggressive of The event is the only global conference conMeasurement .................................................... 20 managers and event marketers seem to be using conventional digital communication methods, vening CEOs, COOs, Presidents, and their product/service portfolios; and/orsuch as e-mail and website “platforms,� to build new tactics such as social media, Conclusion and Recommendations .................... 22 3) heavily involved in interactive media, Managing Directors from across the informachoosing incremental integration over outright revolution. especially search and social media/crowd-sourction industry. Senior executives and thoughtIndex of Figures ................................................. 23 leaders presented case studies, practical strate- ing (Huffington Post, Manta). The significant uptick in digital usage and investment among marketers in the gies, and actionable advice, offering attendees Outsell’s benchmarking analysis, which is exhibition industry speaks to the evolution of the exhibition engagement model and an unparalleled opportunity to learn how the derived from 60 companies, shows that revindustry is successfully executing on business enue from new products launched inhow quickly marketers in this space are making strides to enhance the attendee the past models, strategies, and growth. 18 months comprised 19% of total experience, revenue, deepen engagement and measure performance. Nearly 150 c-level executives from around the up from approximately 12% of total revenue Specifically created for exhibition and event marketing executives with P&L in prior years. This could be a function of the world shared their views and explored the digital the 2010 Digital + Exhibit Marketing Insights study sheds light on where future of the information industry, a nearly recession, as new, less expensive orresponsibility, $400 billion market. Excerpts from four “on- products grab market share and are indicative this community can focus its energies to yield optimal results. The data can be used to of the industry’s innovation. The key spendthe-record� presentations follow: create the case for increased exhibition marketing budgets, to link more closely with ing buckets – IT, Sales, and Marketing – were 2011 Information Industry Outlook up 6%, 18%, and 5%, respectively, overall digital assets, and to deliver better results. in Anthea Stratigos, Co-Founder & CEO, Outsell 2010, with large company spending in those In 2010, the information industry generated areas lagging behind. $366 billion of revenue, with 25%+ coming Information Industry Performance from news providers and publishers. Search (14.6% of the industry’s revenue), Education The information industry is expected to show & Training (13.3%), and Credit & Financial little growth for 2010 compared to 2009. Information (11.6%) are the other large pro- Revenue for the industry fell (8.4%) in (continued on page 4) ducers of information industry revenue.

Media Growth Trends Issues and Opportunities JEGI hosted its third Emerging Company Dinner of 2010 on October 14th at the 21 Club in New York City. (From left) Michael Barrett, CEO, AdMeld; Matt Petersen, SVP, Hearst Magazine Group; Rishad Tobaccowala, Chief Strategy & Innovation Officer, VivaKi; Wilma Jordan, Founder & CEO, JEGI; and Matthew Egol, Partner, Booz & Company.

To subscribe to JEGI’s Client Briefing Newsletter: www.jegi.com/subscribe.php Follow JEGI on Twitter: http://twitter.com/JordanEdmiston

THRU THRU THRU THRU THRU THRU THRU THRU R R R R R R R R DEALS

TOTAL DEAL VALUE

SOURCE JEGI TRANSACTION DATABASE

BILLIONS

As the thought leader for the media, information, marketing services and technology sectors, JEGI maintains extensive industry M&A databases, providing clients with unparalleled levels of information about transaction multiples, transaction history, and market dynamics.

Strong Uptick in 2010 M&A Led by Corporate Buyers

- ! 4RANSACTIONS AND 6ALUE

Ken Wasch, President Software & Information Industry Association (SIIA)

At this critical juncture, the Center for Exhibition Industry Research (CEIR) has again Top Ten Facts ....................................................... 2 partnered with George P. Johnson Experience Marketing to explore the intersection Independent Investment Banking for Media, Information, Marketing & Related Technology Methodology ........................................................ 3 between digital and exhibit marketing, providing data to guide strategy, allocate budget, Digital Media Taxonomy ....................................... 4 audit capabilities and benchmark results.

October 2010

January 2011

“When The Jordan, Edmiston Group speaks, it’s with the voice of authority and expertise; or, as they would say, “mile deep� knowledge. It’s no wonder that executives throughout the B2B media and information industry look to them for insight – they define the term Thought Leader.�

The first three quarters of 2010 saw 651 M&A transactions worth $32.9 billion announced across the media, information, marketing services and technology sectors, as tracked by JEGI. The number and value of M&A transactions in the first three quarters of 2010 increased 42% and 95%, respectively, over 2009 levels. The surge was led by corporate buyers driving 86% of the transactions announced. These “strategic� buyers have unprecedented levels of cash on their balance sheets, with the S&P 1500 companies holding more than $1 trillion in liquid assets. Large cap companies in particular have increased their liquidity, with the S&P 500 increasing their holdings of liquid assets by 46% since 2008. Smaller Deals Abound Q3 saw a number of smaller M&A transactions, with only one deal over $1 billion in value – IBM’s $1.7 billion acquisition of Netezza, a data analytics company, as IBM continues (continued on page 3)

The firm also offers deep research capabilities and market intelligence, delivered in formats ranging from its own industry newsletters and events, to production of many of the leading and most highly regarded industry financial and trend reports, to active participation in key industry events and associations.


JEGI Ranked Top M&A Advisor For five consecutive years, including 2010, JEGI has been ranked the #1 advisor by Bloomberg for US media, Internet and marketing services M&A transactions.

Bloomberg 2008-2010 M&A League Tables

top advisors serving the us media, internet and marketing sectors* 2010 Rank 1 2 3 4 4 4 4 8 8 8

2008-2010

Advisor

# Deals

Jordan Edmiston Group Morgan Stanley Goldman Sachs & Co. RBC Capital Markets Deutsche Bank JP Morgan Ernst & Young Bank of America Merrill Lynch PwC Deloitte Touche Tohmatsu

18 11 9 6 6 6 6 5 5 5

Rank 1 2 3 4 5 6 7 8 8 10

Advisor

# Deals

Jordan Edmiston Group Morgan Stanley Goldman Sachs & Co. JP Morgan Bank of America Merrill Lynch Ernst & Young Citi Deutsche Bank Credit Suisse KPMG Corp Finance

48 35 34 28 27 25 24 23 23 22

* includes: media (multimedia, books, newspapers, and periodicals); internet (b2b e-commerce, infrastructure software, internet content and news, e-commerce products and services, and e-marketing/information); and marketing.

In 2008 and 2009, the 451 Group ranked JEGI the #1 top advisor for US Internet transactions.

2008-2009 Tech M&A Banking Review

Top Advisors for US Technology M&A Deals — Internet Transactions 2009 Rank 1 2 2 2 2 3 3 3

Advisor

2008 # Deals

The Jordan, Edmiston Group Bank of America/Merrill Lynch Lazard Petsky Prunier UBS Allen & Co. Deutsche Bank Morgan Stanley

5 3 3 3 3 2 2 2

Rank 1 2 3 3 3 3 3 3

Advisor

# Deals

The Jordan, Edmiston Group Goldman, Sachs & Co. Bank of America Berkery, Noyes & Co. Deutsche Bank Securities JP Morgan Lazard MESA

7 4 3 3 3 3 3 3

source: 451 group

Our Mission Is…

To have “mile-deep” knowledge of the media, information, marketing services and technology sectors- the core markets we serve. To provide our clients with unparalleled value-enhancing advice and counsel, while delivering extraordinary service and execution. To maintain a team-driven culture based on hard work, in-depth expertise and the highest levels of integrity. To never lose our passion, our perspective or our sense of humor.


JEGI Transactions, 2006-2011YTD a leading interactive marketing agency and CRM solutions provider

has sold

has been sold to a leading local media and marketing services provider a division of

november 2010

a leading mobile messaging and marketing platform

a leading marketing technology company providing interactive video communications

september 2010

has been sold to

september 2010

a division of

the leading provider of consumer shopping predictive targeting data

has been sold to

has been sold to

to

december 2010

has been sold to

a leading provider of Banking Information and Analytics

a leading full service interactive marketing agency

has been sold to

a division of

november 2010

a provider of content, data, advertising, and career services for the oil and gas industry

has been sold to

november 2010

october 2010

has sold has acquired a leading financial information and investing education website

to

a global digital marketing services and technology company JEGI initiated this transaction on behalf of Hearst and acted as Hearst’s exclusive financial advisor.

for $39,000,000

for $42,000,000

august 2010

august 2010

june 2010

a division of

a division of

a division of

has sold

has sold the U.S. assets of

has sold the Asia-based assets of

ELECTRONIC DESIGN NEWS, DESIGN NEWS, TEST & MEASUREMENT WORLD and PACKAGING DIGEST

ELECTRONIC DESIGN NEWS, DESIGN NEWS, TEST & MEASUREMENT WORLD and PACKAGING DIGEST

to

to

february 2010

february 2010

a division DMGT plc

has sold its ALBERTA GIFT SHOW and MONTREAL GIFT SHOW

to

has sold PUBLISHERS WEEKLY

to

INTERIOR DESIGN, FURNITURE/TODAY and SIX SISTER PUBLICATIONS and RELATED ONLINE ASSETS

to

PWxyz, LLC april 2010

april 2010

march 2010

E5 GLOBAL MEDIA

has sold LIBRARY JOURNAL and SCHOOL LIBRARY JOURNAL

to

a leading distributor of company data and public filings for equities, mutual funds and a variety of other pubicly traded assets

has secured $12 million in growth capital from

and the leading business-to-business media brand focused on the information needs of c-level and senior finance executives

to CFO PUBLISHING HOLDINGS, INC.

january 2010

PLURIBUS CAPITAL has acquired a leading research and advisory firm serving the IT industry

The Hollywood Reporter, Billboard, Adweek, Brandweek, MediaWeek, Clio Awards, Backstage, Film Journal International, and Film Expo Business

a portfolio company of

has been sold to

january 2010

january 2010

december 2009

has been sold to

has sold

a portfolio company of

february 2010

a new entity formed by

has sold

a division of

from

a division of

has sold has sold its

a leading library automation software and services company

has been sold to

TELEVISION GROUP a leading source of news, features and advice for developers and IT professionals

to

PLS PARTNERS, LLC december 2009

november 2009

the premier provider of intelligence and analysis on state and local government

to a unit of

to

november 2009

november 2009

november 2009

the leading competitive research, data, and analytics provider to the mutual fund and asset management industries

has sold

has sold

HARTCOURT RELIGION PUBLISHERS a producer of religious education series for elementary school students and religion programs

THE CALIFORNIA GIFT SHOW

an affiliate of

TIMES PUBLISHING COMPANY has announced the sale of

has sold

a leading online permission-based marketing and lead generation firm

the premier provider of congressional news, insight and analysis

to

to

has been sold to

a division of DMGT plc

and related assets

to

to a portfolio company of

october 2009

an a wholly owned subsidiary of THE ECONOMIST GROUP

portfolio company in partnership with Jim Casella

august 2009

july 2009

june 2009

may 2009


JEGI Transactions, 2006-2011YTD (continued) has sold a leading mobile messaging and marketing platform

has been sold to

the provider of medical information to the healthcare, pharmaceutical and biotechnology industries

to

has sold

a business unit that serves the global software testing and performance community

the premier research, data and analysis firm for the temporary staffing industry

has been sold to

february 2009

has been sold to

to

REDWOOD COLLABORATIVE MEDIA

for approximately $95,000,000

an integrated B2B media company

march 2009

an online behavioral targeting network

december 2008

november 2008

november 2008

FINANCIAL MEDIA HOLDINGS GROUP an independent research company for global leaders in business and technology

a division of DMGT plc

has acquired

has sold its

NORTH AMERICAN CONSUMER HOME SHOWS

from

to

has sold a leading healthcare newsletter publisher in conjunction with The John Hopkins University and The University of California at Berkeley

has been sold to

a portfolio company of

the leader in mobile measurement a leading provider of corporate governance, risk and compliance news, analysis, databases and events for financial and legal executives at public companies

has been sold to

to

for $53,000,000

july 2008

july 2008

CONGRESSIONAL QUARTERLY, INC.

Intercept Interactive, Inc.

july 2008

july 2008

may 2008

has sold

a leading medical education and communications holding company

operator of

has sold

a premiere online advertising network

has accepted a strategic investment from the college textbook publisher and online reference information service provider

a leading information services and technology provider of fulfillment and customer relationship management solutions and a portfolio company of

a leading provider of specialized marketing events for the IT sector

TINICUM CAPITAL PARTNERS, L.P.

to

Vision Events

has been sold to

to

may 2008

march 2008

march 2008

february 2008

a membership association providing certification, training and events to IT professionals

a leading online B2B media company providing e-newsletters, web sites, webinars, and live events

a leading business information provider serving the mutual fund, asset management and corporate board markets

a leading provider of experiential and event marketing services

has been sold to

has been sold to

has been sold to

has been sold to

has sold a majority interest to

january 2008

has sold

the leader in domain name asset management

to

january 2008

january 2008

in conjunction with 7

a leading publisher of online communities for parents and parents-to-be

has been sold to

&

january 2008

january 2008

has been sold to

a leading provider of loyalty marketing services

has been sold to

has completed a tender offer for the outstanding shares in

december 2007

has acquired the remaining 51% interest in

GEORGE LITTLE MANAGEMENT

december 2007

W

O

R

L

D

W

I

D

a portfolio company of

a leading information provider to the aviation industry

$58,000,000

november 2007

november 2007

E

a leading provider of lead generation and customer acquisition marketing services

has been sold to

for

a portfolio company of The Wicks Group

has acquired

an innovative consumer health search engine

has been sold to

for

$155,000,000 october 2007

a leading online media company focused on brand advertising sales

has sold a significant investment to

the leading custom publisher serving the U.S. community hospital marketplace

has been sold to

Resources for Christian Living

a provider of media products and services for the Catholic community

july 2007

october 2007

june 2007

a H.I.G. Capital portfolio company

june 2007

may 2007

may 2007


JEGI Transactions, 2006-2011YTD (continued) The Festival Network a global, live entertainment production and marketing company

has secured

COURTENAY COMMUNICATIONS a provider of leading proprietary Internet content sites for mobile technology products

has been sold to

$10,000,000

has sold

and iMARKETINGNEWS magazines and related online and newsletter assets

a leading social media analytics company

has been sold to

a full service tradeshow management company

has been sold to

to

in Series C financing

from a division of the TNS Group

april 2007

april 2007

february 2007

february 2007

january 2007

producer of the world’s only color-coded Bible

has acquired

PHILLIPS INVESTMENT RESOURCES

The Festival Network a global, live entertainment production and marketing company

has acquired

an internationally acclaimed producer of destination-based music festivals including the Newport Jazz Festival and 16 other branded festivals, tours and concerts

a leading database provider of robust product and pricing solutions

has been sold to

GF Capital Management & Advisors, LLC

january 2007

january 2007

a leading provider of anti-money laundering information, conferences and training

has sold

has been sold to

WOODWORKING MACHINERY & SUPPLY and SIBO tradeshows

has sold

has been sold to

the leading information provider of high-value investment advice to the self-directed investor market

a portfolio company of

the leading online marketplace for buyers and sellers of products and services

january 2007

january 2007

january 2007

a Pfingsten Partners portfolio company and a leading provider of B2B media for the financial services, art and industrial markets

an interactive direct marketing agency

has sold a group of seven Canadian industrial and manufacturing tradeshows

to

to

has been sold to

has sold a significant interest to

to a Wind Point Partners portfolio company in partnership with CEO William F. Reilly

a specialist in anti-money laundering and fraud detection technology

december 2006

december 2006

has sold

a leading provider of technology market research, intelligence and demand generation services

has been sold to

december 2006

november 2006

october 2006

a Great Hill Partners portfolio company and the leading event and online company serving the auto tuner and sports compact performance market

has sold

the country’s premier multi-platform media company dedicated to yoga

has been sold to

the leading teen-oriented user generated content site

ACTION PURSUIT GROUP a portfolio company of

to

CMP ENTERTAINMENT MEDIA

has been sold to

to

for

$47,000,000 october 2006

a leading provider of education and career guidance

has been sold to

september 2006

the premier provider of business intelligence for the international trade and transportation industry

has been sold to

september 2006

september 2006

september 2006

a Hong Kong based provider of financial newsletters, conferences and databases to the Asian private equity and venture capital communities

US based Industrial & Manufacturing events portfolio and complementary POWDER/BULK SOLIDS Magazine

has sold its REED NEW PRODUCT DIVISION a portfolio of B2B magazines and online assets serving the manufacturing and scientific industries

to ADVANTAGE BUSINESS MEDIA a portfolio company of

has sold its

C

for

july 2006

A N O N

�C

O M M U N IC A T IO N S �L L C

an APPRISE MEDIA Company

$152,000,000 july 2006

to

has been sold to

june 2006

june 2006

june 2006

VIBE VENTURES has sold the largest provider of online video advertising and management solutions

has been sold to

june 2006

a leading producer of legal, financial and marketing conferences

has been sold to

the leading integrated media company serving the urban music and lifestyle category

a leading producer of executive conferences for Fortune 1000 CIOs

has been sold to

has been sold to

to

june 2006

june 2006

a leading provider of governance information and education services

june 2006

may 2006


Testimonials “Thank you for your incredible support through this process (the sale of Circles)—we owe JEGI a HUGE debt of gratitude and feel incredibly fortunate that we had you on our side!” Kathy Sherbrooke, President, Circles “The sale process was smooth, and working with JEGI was a great success. Having been on the opposite side of the table most of the time, I came to appreciate the process and their work. We took a great business with a strong management team and married it with the right investment bank, providing all the ingredients for a successful outcome.” Alan Glass, Chairman & CEO, Commonwealth Business Media “Our organization has done very little M&A work, so the guidance and counsel that JEGI provided to Times Publishing in the sale of Congressional Quarterly in 2009 and CQ Press the year before was extremely valuable. I was particularly impressed by the tenacity and discipline of the entire JEGI team, coupled with its professional approach. In a difficult and fragile economy, they navigated to a very successful outcome for both seller and buyer.” Paul Tash, Chairman and CEO, Times Publishing Company “JEGI was a critical partner and instrumental to the successful divestiture of our Vision Events business. Their knowledge of the Media and Events space coupled with unique insights and relationships allowed us to accomplish our goals within the context of a very challenging economic environment.” Craig Safian, Group Vice President, Global Finance and Corporate Development, Gartner “JEGI provided superb representation to us throughout the transaction process, leading to a very successful completion. Hiring JEGI was the best money we ever spent!” Russ Thomas, Chief Executive Officer, Gold Standard “Forbes’ experience with The Jordan, Edmiston Group in the sale of Investopedia was impressive. They quickly grasped the essence and value of the company and identified a range of serious potential buyers. The process was efficient, and the outcome of the sale to ValueClick clearly was very beneficial to all involved.” Tim Forbes, President & COO, Forbes, Inc. “After working with Jordan, Edmiston on both sides of the table over the past few years, we didn’t hesitate in choosing the JEGI team to be on our side during the sale of Pfingsten. From start to finish, they handled the transaction process in excellent fashion and added value every step of the way. The team is talented, tenacious and highly efficient, and they earned our full appreciation for a job well done.” Tom Bagley, Senior Managing Director, Pfingsten Partners


The Jordan, Edmiston Group, Inc. 150 East 52nd Street, 18th Floor New York, NY 10022 Phone: 212.754.0710 Fax: 212.754.0337

Web: www.jegi.com


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