Q3 M&A SNAPSHOT

OCTOBER 2010
Q3 M&A SNAPSHOT
OVERVIEW COMMENTARY COMING SOON
M&A activity levels and tone have been nicely improving over the 3rd quarter,
resulting in Architect Partners' market tone meter moving into the green zone
ANALYSIS OF VC-BACKED M&A EXITS
for the first time in two years. 

M&A activity within the crucial $25 million - $1 billion transaction value range
STRATEGIC THEMES DRIVING M&A ACTIVITY
rose strongly in Q3 from Q2.  The number of transactions were up 70% and
consideration paid gained even more impressive 140%.  Good news for the
venture capital community as well.  VC-backed company exits remained at
decent levels, at least as compared to the past two years.

We'd also point to the psychological tailwind from headline transactions such
as Disney's purchase of Playdom, the closing of Google's purchase of AdMob,
IBM's acquisition of Unica, HP and Dell's bidding war for 3Par, VMWare's
purchase of TriCipher and Integrien at very robust valuations and Google's
continued aggressive M&A efforts.

All and all, a solid quarter with the trend positive.

FOLLOWING ANALYSIS
M&A DASHBOARD: SUMMARY OF QUARTERLY ACTIVITY IN
NUMBERS AND TONE

NOTABLE ACQUIRERS: ACTIVE INFLUENTIAL BUYER ACTIVITY

M&A TRANSACTIONS: SUMMARY OF TRANSACTIONS BETWEEN

$25MM-$1B IN VALUE, AP INSIGHTSM M&A
ALERT LINKS

OTHER NOTABLE TRANSACTIONS: SUMMARY OF NOTABLE TRANSACTIONS

WITHOUT ANNOUNCED VALUE OR
ABOVE $1B. AP INSIGHTSM M&A ALERT
LINKS

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M&A DASHBOARD
COVERAGE MARKET TONE
Architect Partners tracks M&A activity within the Improving tone with an increase in volume.
converging internet | mobile | digital media sectors. Buyer-driven dynamics predominantly
The following assessment is focused on M&A
transactions with announced values of between
$25mm and $1B as these typically represent successful 2009 2010
business-building endeavors. Q1 Q2 Q3 Q4 Q1 Q2 Q3

M&A Exits (#)…………………………………………

Total Consideration Paid ($b)…………………

Venture-Backed M&A Exits (#)…………..…..

Median Transaction Size ($mm)……………..

U.S.-based Target (%)…………………..……..…

All Internet | Mobile | Digital Media

M&A Exits(1)(#)…………………………………………
Source: Capital IQ and Architect Partners. Screening criteria based on Architect Partners’ Sector Topology
Note: 1) Includes all transactions within internet | mobile |
Note:
3
digital(1)media
Includes all transactions
regardless within value
of transaction internet | mobile | digital media regardless of transaction value

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NOTABLE ACQUIRERS
The following acquirers are generally active or influential buyers within the internet | mobile | digital media sectors. Below,
NOTABLE ACQUIRERS
we highlight announced acquisitions in the third quarter of 2010.

ACQUIRER # TARGET
9

2
Cable Modem Wireless Solutions

2 NAVKEY

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NOTABLE ACQUIRERS (continued)
NOTABLE ACQUIRERS (continued)
ACQUIRER # TARGET
2

1 SOCIAL EXPRESS

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M&A TRANSACTIONS: $25MM-$1B
Below are Q3 2010 M&A transactions that occurred within the converging internet | mobile | digital media sectors with
announced values of between $25mm and $1B.

ANNOUNCED TRANSACTION AP INSIGHTSM

# DATE ACQUIRER TARGET VALUE ($mm) TARGET DESCRIPTION M&A ALERT

1 08/18/2010 Windstream Q-Comm $780 Offers telecommunications services (bundles voice, video and data) to
residential and business customers in the Midwest.
2 07/28/2010 Walt Disney Playdom $763 Social game developer for Facebook, MySpace, and iPhone.
3 09/10/2010 Axel Springer AG Seloger.com $681 Operates websites for online property advertisements in France.
Provides e-marketing and Web agency services.
4 09/18/2010 Hellman & Friedman Internet Brands $646 Owns, operates, and develops online Web sites including shopping and
travel community as well as content websites such ah health/nutrition
and automotive.
5 08/20/2010 MasterCard/Europa DataCash Group $522 Offers a payment gateway which enables merchants to accept and
y U.K. Limited process payments from consumers online.
6 08/14/2010 IBM Unica $480 Offers cross-channel marketing analytics and management software to
corporate marketers.
7 07/26/2010 Pace 2Wire $475 Provides DSL residential gateways and software for phone companies
to manage broadband connections with customers
8 09/13/2010 PAETEC Holding Cavalier Telephone $460 A CLEC carrier. Provides voice and data services to business and
residential customers.
9 07/10/2010 Automatic Data Cobalt Group $400 Provides digital marketing services for the automotive industry.
Processing
10 07/30/2010 Aegis Group Mitchell $394 Offers interactive marketing and communications services including
Communication media planning and buying, consumer insights research, specialist
Group strategic advice, and branded content solutions.
11 09/16/2010 Montagu Private Host Europe WVS $344 Internet hosting company. Offers services such as enterprise hosting,
Equity managed dedicated servers, shared virtual server hosting, server co-
location and domain name registration.
12 07/29/2010 Adobe Systems Day Software $240 Offers a web content management system (“CMS”) enabling
companies to manage and deliver digital content of their websites or
web-based applications.
13 08/07/2010 Google Slide $228 Social games and applications developer for Facebook, MySpace, Hi5,
Bebo and Orkut.
14 07/17/2010 Mobile Telesystems Multiregion JSC $218 Cable television and internet provider.
15 09/29/2010 MegaFon ZAO Peterstar $215 Telecommunications company in the Russian Federation. Provides
telephony services, such as digital, Internet protocol, wireless, and
Internet services including leased lines, home networks, ADSL, dial-up,
wimax, and wi-fi.
16 09/18/2010 Experian Mighty Net $208 Owns and operates a consumer credit information management
website.
17 08/06/2010 Warner Bros Shed Media $201 Engages in the production and distribution of programs the TV
Consumer Products industries including various terrestrial broadcasters, digital channels,
networks, and cable channels.
18 07/07/2010 Renesas Electronics Nokia, Wireless $200 Develops wireless modem technology used for mobile cellular
Modem Business communications.
19 07/06/2010 CTS Eventim AG See Tickets $182 Online ticketing services for musicals and cultural events.
Germany
20 07/23/2010 SAI Global Integrity Interactive $170 Offers Web-based compliance, ethics, and corporate responsibility
training solutions.

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M&A TRANSACTIONS: $25MM-$1B (continued)
ANNOUNCED TRANSACTION AP INSIGHTSM
# DATE ACQUIRER TARGET VALUE ($mm) TARGET DESCRIPTION M&A ALERT

21 07/20/2010 NTELOS Inc. Mountaineer $170 Fiber optic network of approximately 3,500 route miles covers all of
Telecommunication West Virginia and extends into surrounding areas in Ohio, Maryland,
s (Forborne Pennsylvania, Virginia and Kentucky.
business)
22 08/04/2010 Knology Sunflower $165 Cable operator. Offers cable television programming services.
Broadband
23 09/17/2010 Calix Occam Networks $163 Offers broadband access hardware and software that enable telecom
service providers to offer voice, video, and high speed Internet or triple
play services over copper and fiber optic networks.
24 09/08/2010 Zoran Microtune $160 Develops radio frequency (RF) integrated circuits (IC), digital signal
processing ICs, and subsystem module solutions for the cable,
automotive entertainment electronics, and digital television markets.
25 07/22/2010 LDC Easynet Group $152 A broadband networking company. Provides IP-based wide area
networking solutions to businesses and consumers.
26 08/25/2010 Turner Broadcasting Red de Televisión $150 Operates as a television network. The company broadcasts television
System Chilevision channels.
27 07/07/2010 Expansys PJ Media Limited $126 Provides Web site design, wireless solutions, digital marketing services
And Data Select and hosting services.
Network Solutions
28 09/02/2010 Taleo Learn.com $125 Provides on-demand e-learning software for workforce development
and virtual office space for productivity solutions.
29 07/31/2010 Silver Lake Partners Allyes Online Media $124 Offers digital marketing solutions including internet advertising,
Holding performance marketing, advertising technology solutions, and online
market research.
30 09/09/2010 TNS Cequint $113 Cequint Inc. provides technology that enables wireless carriers to offer
caller ID services in North America. The company's City ID, a caller ID
product displays the city and state beneath the number of wireless call
received. Its product is used by carriers, manufacturers, and end
customers. Cequint Inc. was founded in 2004 and is headquartered in
Seattle, Washington.
31 07/31/2010 NTT DOCOMO PacketVideo $112 Offers digital media delivery products.
32 09/17/2010 Sinocan Holdings B2Digital $106 Provides in-room on-demand video entertainment and satellite
services to the lodging industry.
33 09/21/2010 Z3 Enterprises Usee $105 A VoIP services provider.
34 09/01/2010 Vmware Integrien $100 Develops software that enables IT managers to analyze the
performance of their IT infrastructure (including IT applications,
network, operating systems, storage and virtualized/cloud computing
infrastructure) in real-time.
35 09/09/2010 Shanda Games Eyedentity Games $95 Online game development studio.
36 08/05/2010 Telefonica Tuenti Technologies $92 Social networking Web site.
S. L.
37 07/30/2010 Pearson WSI International $92
Provides virtual English instruction services for individuals and
corporate client.
38 08/27/2010
ANNOUNCED Cisco Systems ExtendMedia $80 Offers software that allows video service providers to manage, publish
TRANSACTION AP INSIGHTSM
# DATE ACQUIRER Corporation
TARGET VALUE ($mm) and monetize
TARGET IP-based video across PCs, TVs and mobile devices.
DESCRIPTION M&A ALERT
39 07/07/2010 Synchronoss FusionOne $75 Provides content transfer and synchronization services for mobile
Technologies phones.
40 07/20/2010 Atheros Opulan Technologies $72 Offers nternet protocol (IP) convergence chip solutions for xDSL, IPTV,
Communications 3G wireless, carrier Ethernet access.

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M&A TRANSACTIONS: $25MM-$1B (continued)
ANNOUNCED TRANSACTION AP INSIGHTSM
# DATE ACQUIRER TARGET VALUE ($mm) TARGET DESCRIPTION M&A ALERT

41 07/28/2010 Juniper Networks SMobile Systems $70 Designs, develops, and markets security applications for mobile
devices.
42 08/30/2010 Ebix ADAM $70 Offers online health information and a Web-based portal for employee
benefit information.
43 09/29/2010 AOL 5min $65 Offers software that enables advertisers and publishers to populate,
distribute and monetize video content that is relevant to the viewers
44 09/26/2010 LM Ericsson Nortel Networks, $65 Manufactures multiservice switches for voice services and wireless
Multi-Service Switch applications.
Business
45 07/17/2010 Tele2 AB Bbned $65 Offers digital subscriber line (DSL) communication services for the
business market.
46 09/28/2010 ECI Partners XLN Telecom $61 Provides telecommunication services (including phone, broadband and
network services) to small businesses.
47 07/31/2010 Francisco Partners E-mail Vision $60 Email service provider. Offers an online software application that
allows marketers to manage various aspects of their email marketing
campaigns, including design, planning, delivery, A/B split testing, and
analytics.
48 08/24/2010 Tencent Comsenz $60 Provides bulletin board and social networking software, as well as
hosting services, to Chinese websites.
49 07/03/2010 Blackboard Elluminate $57 Provides live eLearning and Web collaboration solutions for the
academic market.
50 07/31/2010 iiNet AAPT, Consumer $54 A broadband internet service provider.
Division
51 09/24/2010 PLX Technology Teranetics $54 Develops silicon products for communication applications.
52 07/03/2010 Blackboard Wimba $53 Provides collaborative learning software applications and services for
further/higher education and K-12 markets.
53 09/10/2010 Miranda OmniBus Systems $47 Delivers master control, automation, play out, and media content
Technologies management solutions to broadcast, cable, satellite, and telecom
operators.
54 07/31/2010 Vimpel- Foratek $46 Owns and operates approximately 1,200 kilometers of fiber-optic
Communications Kommunikeishn networks for the broad band internet sector.
55 09/18/2010 Lenco Mobile Jetcast $42 Provides monetization solutions for Internet radio and television
broadcasters.
56 08/04/2010 ValueClick Investopedia $42 Operates an online portal for investor education.
57 08/24/2010 Sigue Coinstar E-Payment $42 Offers e-payment services.
Services and
Coinstar UK
Holdings
58 08/19/2010 Applied Micro TPACK A/S $37 Manufactures and provides embedded software solutions to telecom
Circuits equipment manufacturers.
59 09/02/2010 comScore Nedstat $37 Offers Website analytics solutions.
60 08/14/2010 Ybrant Digital Lycos $36 Operates a network of social media Web sites that foster online
communities. Products and services include Angelfire and Tripod, the
Web publishing and hosting sites on the Internet that provides users
with tools to build Web sites, blogs, and photo albums.

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M&A TRANSACTIONS: $25MM-$1B (continued)
ANNOUNCED TRANSACTION AP INSIGHTSM
# DATE ACQUIRER TARGET VALUE ($mm) TARGET DESCRIPTION M&A ALERT

61 07/22/2010 Oclaro Mintera $32 Develops high speed optical transmission systems.
62 07/12/2010 Walla! Coral-Tell Internet $30 Owns and operates web portals.
Communication Services
63 09/22/2010 Undisclosed Ortsbo $30 Owns and operates social media, real-time, translation platform which
publicly listed offers real-time conversational translation.
company
64 09/10/2010 Hyperion Stream $30 Provides cable television, high-speed Internet access, and voice over
Communications Internet protocol services.
65 09/23/2010 Ancestry.com Footnote $30 Provides online historic documents and records for history buffs,
genealogists, researchers, family historians, military historians,
teachers, and institutions.
66 09/21/2010 Apple Polar Rose $29 Allows users to discover information about people appearing in
publicly viewable photos.
67 09/03/2010 Doculynx Anacomp, $28 Offers online web presentment solution and document management
Docharbor Online systems.
and Document
Management
Divisions
68 07/20/2010 Adnan Asdar Ali, Multinet Pakistan $26 Offers broadband services, such as DSL, hotspots, metro area, dialup,
Chief Executive and wireless broadband services.
Officer and
Executive Director
of Multinet

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M&A TRANSACTIONS: OTHER NOTABLE
A fairly significant number of transactions are announced without disclosing transaction values. Below, we highlight a select
few notable transactions which occurred within the third quarter of 2010, which either had no publicly announced value or
were larger than $1 billion.

ANNOUNCED TRANSACTION AP INSIGHTSM

# DATE ACQUIRER TARGET VALUE ($mm) TARGET DESCRIPTION M&A ALERT

1 09/23/2010 LinkedIn ChoiceVendor - Operates review site for business services.

2 09/17/2010 Motorola Aloqa - Provides a mobile service that notifies interesting places, events, and
Facebook friends in real time.
3 09/08/2010 Research In Motion DataViz - Develops and markets office compatibility and productivity solutions
4 09/03/2010 Cisco Systems Arch Rock - Develops products and technology for wireless sensor networks.
5 09/02/2010 Alcatel-Lucent Open-Plug - Offers tools that enable developers to create mobile applications that
can be easily run on multiple operating systems (OS) including
Android, iOS, Symbian, Windows Mobile, Palm webOS and Linux.
6 09/01/2010 Vmware TriCipher - Offers Web applications authentication services.
7 09/01/2010 AOL Rally Up - Provides social networking service that combines private
microblogging with location.
8 08/31/2010 Google SocialDeck - Social game developer for iPhone, Blackberry, and Facebook.
9 08/30/2010 Intel Infineon's Wireless $1,400 Offers cellular platforms for global phone makers. Products include
Solutions Business broadband processor, RF transceiver and power management IC.
10 08/30/2010 Google Ångströ - Provides online business news articles. Offers online information
discovering and sharing services.
11 08/25/2010 Motorola 280 North - Offers an open-source project enabling users to develop desktop-class
applications on the Web.
12 08/25/2010 Research In Motion Cellmania - Provides mobile content management platform featuring functinos
such as search, advertising, and billing integration.
13 08/24/2010 NAVTEQ NavKey - Offers terrestrial and nautical digital map data for personal navigation
device.
14 08/24/2010 Federated Media TextDigger - Provides semantic and linguistic profiling solutions for the search
Publishing engine optimization, content tagging, and search term generation.
15 08/21/2010 Facebook Hot Potato - Offers internet-based social networking services.
16 08/21/2010 Google Like.com - Operates a visual search engine to buy shoes, apparel, jewelry,
accessories, and home decoration products online.
17 08/21/2010 Nokia Motally - Operates as a mobile analytics company. Offers traffic-tracking
software to mobile Website operators.
18 08/18/2010 Zynga Conduit Labs - Conduit Labs, Inc. engages in the development and marketing of online
games. The company was founded in 2007 and is based in Cambridge,
Massachusetts. As of August 17, 2010, Conduit Labs, Inc. operates as a
subsidiary of Zynga, Inc..
19 08/17/2010 Intel Texas Instruments , - Offers consumer electronics devices such as set top boxes, digital
Cable Modem Television, and blu-ray disc players.
Product Line
20 08/16/2010 Yahoo Japan Cirius Technologies - Provides a mobile advertising network for the advertisers and ad
agencies to deliver local targeted advertisement campaigns to mobile
users.

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M&A TRANSACTIONS: OTHER NOTABLE (continued)

ANNOUNCED TRANSACTION AP INSIGHTSM

# DATE ACQUIRER TARGET VALUE ($mm) TARGET DESCRIPTION M&A ALERT

21 08/10/2010 Google Jambool - Provides a virtual currency platform that enables micropayments in an
online game or social network.
22 07/17/2010 Google Metaweb - Metaweb Technologies, Inc. designs and builds Web infrastructure
Technologies technology for Web application developers and publishers. Its
technology powers commercial and open-source applications with
focusing on organizing and managing data structures. The company
was founded in 2005 and is headquartered in San Francisco, California.
As of July 16, 2010, Metaweb Technologies, Inc. operates as a subsidiary
of Google Inc.
23 07/17/2010 Nokia Motorola's Network $1,200 Provides GSM, CDMA, WCDMA, WiMAX and LTE for various carriers.
Infrastructure Assets

24 07/09/2010 NexTag Wize - Operates a product research Web site that enables consumers to search
and find products.
25 07/02/2010 Disney Interactive Tapulous - iPhone game developer.
Media Group
26 06/30/2010 Alcatel-Lucent ProgrammableWeb - Directory of APIs

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