2011 local commerce m&a

8/2/2019 2011 Local Commerce M&A

1/13

MERGERS & ACQUISITIONS

UP STRONGLY IN LOCAL

March 2012


2/13

2

KEY TAKEWAYS

DEFINING LOCAL

KEY COMPANIES

MARKET OPPORTUNITY

M&A ACTIVITY

CONTENTS

3

4

7

8

9


3/13

3

LOCAL MARKETING AND COMMERCE ARE IN THE MIDST OF

A MAJOR UPHEAVAL DRIVEN BY:INTERNET-INFORMED & CONNECTED CONSUMERS

MOBILE DEVICES

LOCATION AWARENESS

INTENSIVE DATA ANALYSIS

BIA/KELSEY PROJECTS LOCAL ADS ALONE WILL

REPRESENT $38 BILLION IN SPEND BY 2015, UP 65% FROM

TODAY

STRATEGIC M&A IS VERY ACTIVE WITH 186 ANNOUNCED

TRANSACTIONS IN 2011, UP 40% FROM 2010

GROUPON, GOOGLE, LIVINGSOCIAL AND EBAY ARE THELEADING ACQUIRERS

KEY TAKEAWAYS


4/13

4

FACILITATING INTERACTION AND COMMERCE

BETWEEN

CONSUMERS ANDLOCAL MERCHANTS

WHAT IS LOCAL COMMERCE ?

Yes, it includes: one store merchants

local service providers

national chain retailers


5/13

THE FUNDAMENTALS OF LOCAL COMMERCE

5

SELLCUSTOMER

PRODUCTS &

SERVICES

ATTRACTCUSTOMER

ENCOURAGE

REPEAT

LOCAL

MERCHANT

$

$$


6/13

LOCAL COMMERCE WITH COMPLEXITY

6

Advertising

Promotion

Create Social Signals

Reviews

Price & Availability

In-Store Assisted Selling

In-Store Navigation

HELP CUSTOMERS LEARN

Distributed Store Platform

CATALYZE PURCHASES

Recommendations

SUGGEST ADDITIONAL PURCHASES

In-Store Assisted Selling

HELP CUSTOMERS PAY

Payment Infrastructure

ENCOURAGE & MANAGE SOCIAL SIGNALS

Loyalty Programs

Customer Support

Clienting Software

CUSTOMER RELATIONSHIP MANAGEMENT

Social Network EngagementEncourage Sharing Purchases

Encourage Reviews

Encourage Referrals

MARKETING EFFORTS

LOCAL

MERCHANT

ATTRACTCUSTOMER

SELLCUSTOMER

PRODUCTS &

SERVICES

ENCOURAGEREPEAT

$

$$


7/13

IMPORTANT LOCAL PLAYERS TODAY

7

LOCAL

MERCHANT

ATTRACTCUSTOMER

SELLCUSTOMER

PRODUCTS &

SERVICES

ENCOURAGEREPEAT

$

$$


8/13

LARGE LOCAL ADVERTISING MARKET OPPORTUNITY

8

$23b

$38b

2011 2015

U.S. LOCAL DIGITAL ADVERTISING REVENUE

13%CA

GR

Source: BIA/Kelsey U.S. Local Digital Advertising Revenue, November 2011


9/13

STRATEGIC MOVES ARE HAPPENING

9

LOCAL COMMERCE M&A ACTIVITY LEVEL

2010 2011 2012 TO

DATE (a)

21 37 32 30 22 47 46 48 37

NUMBER OF TRANSACTIONS PER QUARTER

NUMBER OF UNIQUE BUYERS PER QUARTER

23

40

3436

24

57 55

50

23

Note: a) Through March 8, 2012

Source: Architect Partners, Capital IQ and Public Information. Local commerce M&A is defined to Include target

companies within local marketing and commerce such as local daily deals, coupons, local search, directory, local

ad targeting, digital payment infrastructure and online local commerce. Excludes non-local flash sales companies.

15

2521

24

12

33

41

2420

8

15

1312

12

24

14

26

21

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Non U.S. Target

U.S. Target

41


10/13

Acquirer

# of

Acquisitions Target Target Description Acquirer

# of

Acquisitions Target Target Description

Groupon 21 Clandescuento Daily deal site, Chile-based CrowdSavings 5 DailyDealSquad Daily deal siteCitydeal Daily deal site, Germany-based Savvy Avenue Daily deal site

Mob.ly Online review DealDaddies.com Daily deal site

Darberry Daily deal site, Russia-based LuckyMonkey.com Daily deal siteQpod Daily deal site, Japan-based Maiplay Daily deal site

Ludic Labs Social media

UBuyIBuy Daily deal site,Hong Kong-based

Beeconomic Daily deal site, Singapore-basedAtlaspost Daily deal site,Taiwan-based eBay 4 RedLaser Mobile shopping

Soasta.com Daily deal site, India-based Milo Mobile local inventory

GroupsMore Daily deal site, Malaysia-based Where Location-based advertising

Grouper Daily deal site, Israel-based Alamaula Online marketplace, Turkey-basedTwangoo Daily deal site, South Africa-based

Crowdmass Daily deal site, Australia-based

Pelago Location-based social app

PT Lamuda Tenka Daily deal site, Indonesia-based Local.com 4 Simply Static Online local advertisingZappedy Integrated local advertising iTwango Daily deal site

Adku Personalized Shopping Krillion Mobile shopping

Kima Labs Online local shopping Screamin Media Daily deal site

UpTake Online travel

Hyperpublic Geo-location technology

Google 9 Ruba Travel guide site Yahoo! 3 Koprol Local social networkingZetawire Mobile payment Cirius Mobile ad network

TalkBin Local business review Spreets Daily deal site, Australia-based

DailyDeal Daily deal site, Germany-based

Zagat Local restaurant reviewZave Networks Mobile coupons

The DealMap Daily deal aggregator Facebook 3 NextStop Online travel recommendations

Punchd Labs Loyalty / membership rewards rel8tion Mobile marketing

Clever Sense User preference-based concierge Gowalla Local social networking

BuyWithMe 6 LocalTwist Daily deal site Gilt City 3 Bergine Daily deal siteGroop Swoop Daily deal site Dine Private Online restaurant booking

Dealadayonline Daily deal site BuyWithMe Daily deal site

TownHog.com Daily deal siteScoop St Daily deal siteEdhance Daily deal site

LivingSocial 6 Urban Escapes Social adventure trips

Let's Bonus Daily deal site, Europe-based

Ensogo Daily deal site, Thailand-based

GoNabit Daily deal site, Middle East-basedDealissime Daily deal site, France-based

JumpOnIt Daily deal site

STRATEGIC MOVES ARE HAPPENING

Ten Most Active Local Acquirers 2010 - 2012 YTD (a)

10

Prior to acquisition

by Gilt City

Note: a) Through March 8, 2012

Source: Architect Partners, Capital IQ and Public Information


11/13

RECENT MARQUEE DEALS

11

Source: Architect Partners, Capital IQ and Public Information

DATE TARGET ACQUIRORVALUE($mm) SUMMARY SECTOR(S)

AP INSIGHTSMM&A ALERT

3/9/2012 Loopt Green Dot $43 Major payment company acquires local advertisingplatform and location technology

Attract Customers

1/20/2012 Red Beacon Home Depot $80 Major retailers makes move to reach local serviceproviders

Attract CustomersEncourage Repeat

1/19/2012 Cardstar Constant Contact NA SMB email marketing provider acquires loyalty card

appliation to give it (and it's customers) a persistentpresence on mobile devices

Attract Customers

Encourage Repeat

9/8/2011 Zagat Google $151 Major search company bulks up on review-based localcontent


8/1/2011 The Dealmap Google NA Map-based daily deal aggregator Attract CustomersEncourage Repeat

5/26/2011 Merchant Circle Reply! $60 Local online marketing bidding technology acquiresonline marketing services provider for local

businesses


4/15/2011 Where eBay $135 Major ecommerce provider acquires local advertising

platform and location technology

Attract Customers

12/2/2010 Milo eBay $75 Major ecommerce provider acquires local commerce

enabler - local pricing and availability app

Sell Customer

Products andServices

6/24/2010 Red Laser eBay $10 Major ecommerce provider acquires local commerceenabler - barcode scanning technology

Sell CustomerProducts andServices
http://architectpartners.com/green-dot-acquires-loopt/http://architectpartners.com/green-dot-acquires-loopt/http://architectpartners.com/green-dot-acquires-loopt/http://architectpartners.com/green-dot-acquires-loopt/http://architectpartners.com/green-dot-acquires-loopt/http://architectpartners.com/green-dot-acquires-loopt/http://architectpartners.com/ebay-acquires-mobile-comparison-pricing-application-redlaser/http://architectpartners.com/ebay-acquires-mobile-comparison-pricing-application-redlaser/http://architectpartners.com/ebay-acquires-mobile-comparison-pricing-application-redlaser/http://architectpartners.com/ebay-acquires-mobile-comparison-pricing-application-redlaser/http://architectpartners.com/ebay-acquires-mobile-comparison-pricing-application-redlaser/http://architectpartners.com/ebay-acquires-mobile-comparison-pricing-application-redlaser/http://architectpartners.com/ebay-buys-milo-com/http://architectpartners.com/ebay-buys-milo-com/http://architectpartners.com/ebay-buys-milo-com/http://architectpartners.com/ebay-buys-milo-com/http://architectpartners.com/ebay-buys-milo-com/http://architectpartners.com/ebay-buys-milo-com/http://architectpartners.com/ebay-acquires-where/http://architectpartners.com/ebay-acquires-where/http://architectpartners.com/ebay-acquires-where/http://architectpartners.com/ebay-acquires-where/http://architectpartners.com/ebay-acquires-where/http://architectpartners.com/ebay-acquires-where/http://architectpartners.com/reply-acquires-merchantcircle/http://architectpartners.com/reply-acquires-merchantcircle/http://architectpartners.com/reply-acquires-merchantcircle/http://architectpartners.com/reply-acquires-merchantcircle/http://architectpartners.com/reply-acquires-merchantcircle/http://architectpartners.com/reply-acquires-merchantcircle/http://architectpartners.com/google-acquires-zagat/http://architectpartners.com/google-acquires-zagat/http://architectpartners.com/google-acquires-zagat/http://architectpartners.com/google-acquires-zagat/http://architectpartners.com/google-acquires-zagat/http://architectpartners.com/google-acquires-zagat/http://architectpartners.com/constant-contact-acquires-cardstar/http://architectpartners.com/constant-contact-acquires-cardstar/http://architectpartners.com/constant-contact-acquires-cardstar/http://architectpartners.com/constant-contact-acquires-cardstar/http://architectpartners.com/constant-contact-acquires-cardstar/http://architectpartners.com/constant-contact-acquires-cardstar/


12/13

PUBLIC LOCAL-ORIENTED COMPANIES

12

NAME DESCRIPTION

CURRENTMARKET

CAPITALIZATION($mm)

ENTERPRISEVALUE/

REVENUEMULTIPLETTM

PRICE/EPSMULTIPLENEW STARSAngie's List Local service provider reviews $782.3 7.9x NM

Groupon Online local business coupons $10,676.8 5.9x NM

Loopnet Online real estate search and directory $788.4 7.8x NM

OpenTable Online restaurant reservations $931.4 6.3x 46.9x

Velti Mobile marketing $770.3 3.7x NM

Yelp Local business reviews $1,346.6 16.6x NM

Zillow Online real estate search and directory $873.2 12.1x NM

TRADITIONALAmazon Online commerce $83,454.9 1.6x 133.9xDex One Local business directory $76.4 1.6x NM

eBay Online marketplace $46,697.8 3.7x 14.7x

Google Online marketing $196,756.3 4.2x 20.3x

Local.com Online marketing solutions to SMBs $57.4 0.7x NM

Marchex Online marketing solutions to SMBs $160.6 0.8x 53.9x

MasterCard Payment infrastructure provider $53,117.0 7.2x 28.3x

ReachLocal Online marketing solutions to SMBs $225.2 0.4x NM

SuperMedia Local business directory $41.2 1.0x NM

Valassis Local print advertising and coupons $1,003.7 0.7x 10.1x

ValueClick Online marketing $1,650.9 3.0x 16.6x

VeriFone Payment infrastructure provider $5,313.9 4.6x 20.4x

Visa Payment infrastructure provider $78,334.7 8.0x 20.6x

Yahoo Online advertising $17,587.2 3.1x 17.8xYellow Media Local business directory $56.8 1.9x NM

Source: Architect Partners, Capital IQ and Public Information, March 12 2012


13/13

PREPARED BY: FOR:

2011 local commerce m&a

Documents