New Report Reveals USD104bn of Internet-industry M&A in 2011

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Europe and Asia-Pacific post highest average deal values; Software & Services leads the way

Benjamin Chong, publisher of Internet DealBook said, “European Internet M&A deals were larger than all other regions last year. At the same time, it’s clear that Asia-Pacific is fast catching up with its peers in Europe and North America."

Internet DealBook today released its comprehensive Annual Global M&A and Investment Activity Review, which brings together some of the most detailed financial data available for the 2011 calendar year.

While most Internet financial reports have dealt with specific world regions or sectors, Internet DealBook takes a global perspective for an increasingly global world. Its Annual Global M&A and Investment Activity Review has been compiled from a detailed analysis of over 2,400 deals worth over USD104bn during 2011, identifying businesses that have been acquired or received funding, by geography and sector.

Europe tops all regions with an average deal value of USD114m. Asia-Pacific comes second at USD60.4m, beating North America at USD59.2m. Even after taking out Microsoft’s USD8.5b acquisition of Skype, Europe still tops the charts with an average deal value of USD74.1m. Benjamin Chong, publisher of Internet DealBook said, “European Internet M&A deals were larger than all other regions last year. At the same time, it’s clear that Asia-Pacific is fast catching up with its peers in Europe and North America. The growth of consumer Internet activity in Asia-Pacific is being mirrored in the M&A markets and demonstrated through larger average deal values”.

Software & Services businesses were responsible for USD53.1bn in acquisition activity. This is significantly higher than the second-placed Hardware & Infrastructure, which generated USD10.4bn. Software & Services businesses also prevailed in investment activity receiving a total of USD6.7bn in funding. This compares with USD4.6bn raised by Media businesses.

The North American region still reigns in several key areas, including USD72bn worth of deals for the year – over 71 percent of the global total. The region also attracted USD20.2bn worth of investment, which cements its reputation as a technology leader.

When adjusted for population size, and excluding Microsoft’s acquisition of Skype, the top five countries by deal value were the United States, United Kingdom, Israel, Sweden, and Canada.

Mobile & Apps businesses take smaller investment rounds

Mobile & Apps businesses taking on new investment capital have an average deal value of USD8.4m. This compares favourably with Hardware & Infrastructure businesses at USD78.3m and Transactions businesses at USD31.6m. Software & Services businesses generated the most activity with 641 deals tracked during 2011.

Hardware & Infrastructure companies are the most valuable

The average deal value for acquired Hardware & Infrastructure businesses was the highest at USD576m. Software & Services businesses came second at USD496.1m and Marketing businesses came third at USD216.9m.

Internet DealBook’s Annual Global M&A and Investment Activity Review is available at http://www.internetdealbook.com. For more information, please contact:

James Whalley
info(at)internetdealbook(dot)com
+61 2 9967 8800

About Internet Dealbook
Internet DealBook is a repository of information about Internet- and technology-related investments and M&A deals. Founded in 2011, it provides extensive lists of deals from public sources around the world. Internet DealBook is published by Online Agility, a Right Click Capital company.

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James Whalley

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