2013-01-02 14:01:51 -
Both IPO and Acquisition Quality Improved as Market Uncertainty Slowed
Transactions in the Second Half of the Year
New York, New York, January 2, 2013 - Venture-backed initial public offering
(IPO) activity raised $1.4 billion from eight offerings during the fourth
quarter of 2012, a slight decline in volume from the third quarter of this year
but a 23 percent increase in dollars raised compared to the previous quarter,
according to the Exit Poll report by Thomson Reuters and the National Venture
Capital Association (NVCA). For full year 2012, venture-backed initial public
offerings raised $21.5 billion from 49 listings, and driven by the Facebook
offering, represented the strongest annual period for IPOs, by dollar value,
since 2000. For the fourth quarter of 2012, 95 venture-backed M&A deals were
reported, 26 of which had an aggregate deal value of $3.5 billion, a 57 percent
decrease from the third quarter of 2012. Acquisitions of venture-backed
companies totaled $21.5 billion for full year 2012, an 11 percent decline from
full year 2011.
"While the venture capital and startup communities were optimistic about a more
robust IPO market in 2012, political, economic and market conditions served as
the backdrop for a series of fits and starts which hurt volume growth throughout
the year for public offerings and acquisitions alike," said Mark Heesen,
president of the NVCA. "Yet, while increased volumes remained elusive, the
overall quality of exits this year was quite strong, and certainly sends a
message that the market is receptive and open for business in 2013."
+------------+------+----------+----------+---------+---------+--------+-------+
| | | | | | | |Average|
| | |M&A Deals | *Total |*Average | | Total | IPO |
| |Total | with |Disclosed |M&A Deal | | Offer | Offer |
| | M&A |Disclosed |M&A Value | Size |**Number | Amount |Amount |
|Quarter/Year|Deals | Values | ($M) | ($M) |of IPO's | ($M) | ($M) |
+------------+------+----------+----------+---------+---------+--------+-------+
|2007 | 488 | 200 | 30,745.5| 153.7| 92 |12,365.5| 134.4|
+------------+------+----------+----------+---------+---------+--------+-------+
|2008-1 | 129 | 43 | 5,201.6| 121.0| 6 | 577.5| 96.3|
+------------+------+----------+----------+---------+---------+--------+-------+
|2008-2 | 102 | 28 | 3,145.2| 112.3| 0 | 0| 0.0|
+------------+------+----------+----------+---------+---------+--------+-------+
|2008-3 | 109 | 40 | 5,248.8| 131.2| 1 | 187.5| 187.5|
+------------+------+----------+----------+---------+---------+--------+-------+
|2008-4 | 76 | 23 | 2,641.3| 114.8| 0 | 0| 0.0|
+------------+------+----------+----------+---------+---------+--------+-------+
|2008 | 416 | 134 | 16,236.9| 121.2| 7 | 765.0| 109.3|
+------------+------+----------+----------+---------+---------+--------+-------+
|2009-1 | 80 | 19 | 830.5| 43.7| 0 | 0| 0.0|
+------------+------+----------+----------+---------+---------+--------+-------+
|2009-2 | 77 | 14 | 1,982.4| 141.6| 7 | 997.6| 142.5|
+------------+------+----------+----------+---------+---------+--------+-------+
|2009-3 | 96 | 30 | 2,224.3| 74.1| 2 | 522.5| 261.3|
+------------+------+----------+----------+---------+---------+--------+-------+
|2009-4 | 98 | 45 | 7,327.7| 162.8| 4 | 459.7| 114.9|
+------------+------+----------+----------+---------+---------+--------+-------+
|2009 | 351 | 108 | 12,364.9| 114.5| 13 | 1,979.8| 152.3|
+------------+------+----------+----------+---------+---------+--------+-------+
|2010-1 | 146 | 36 | 4,945.1| 137.4| 8 | 921.9| 115.2|
+------------+------+----------+----------+---------+---------+--------+-------+
|2010-2 | 108 | 30 | 2,681.4| 89.4| 18 | 1,548.4| 86.0|
+------------+------+----------+----------+---------+---------+--------+-------+
|2010-3 | 133 | 36 | 4,140.9| 115.0| 17 | 1,996.0| 117.4|
+------------+------+----------+----------+---------+---------+--------+-------+
|2010-4 | 134 | 47 | 5,932.8| 126.2| 25 | 3,142.8| 125.7|
+------------+------+----------+----------+---------+---------+--------+-------+
|2010 | 521 | 149 | 17,700.3| 118.8| 68 | 7,609.1| 111.9|
+------------+------+----------+----------+---------+---------+--------+-------+
|2011-1 | 135 | 51 | 5,966.8| 117.0| 14 | 1,526.9| 109.1|
+------------+------+----------+----------+---------+---------+--------+-------+
|2011-2 | 92 | 37 | 6,202.3| 167.6| 21 | 5,883.5| 280.2|
+------------+------+----------+----------+---------+---------+--------+-------+
|2011-3 | 139 | 43 | 6,934.5| 161.3| 5 | 475.9| 95.2|
+------------+------+----------+----------+---------+---------+--------+-------+
|2011-4 | 122 | 38 | 4,989.6| 131.3| 11 | 2,803.2| 254.8|
+------------+------+----------+----------+---------+---------+--------+-------+
|2011 | 488 | 169 | 24,093.2| 142.6| 51 |10,689.5| 209.6|
+------------+------+----------+----------+---------+---------+--------+-------+
|2012-1 | 112 | 28 | 3,671.0| 131.1| 19 | 1,682.8| 88.6|
+------------+------+----------+----------+---------+---------+--------+-------+
|2012-2 | 118 | 31 | 6,180.2| 199.4| 12 |17,219.1| 1434.9|
+------------+------+----------+----------+---------+---------+--------+-------+
|2012-3 | 110 | 35 | 8,088.8| 231.1| 10 | 1,140.7| 114.1|
+------------+------+----------+----------+---------+---------+--------+-------+
|2012-4 | 95 | 26 | 3,523.2| 135.5| 8 | 1,408.4| 176.1|
+------------+------+----------+----------+---------+---------+--------+-------+
|2012 | 435 | 120 | 21,463.2| 178.9| 49 |21,451.2| 437.8|
+------------+------+----------+----------+---------+---------+--------+-------+
Source: Thomson Reuters & National Venture Capital
Association
*Only accounts for deals with disclosed
values
**Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile.
IPO Activity Overview
There were eight venture-backed IPOs valued at $1.4 billion in the fourth
quarter of 2012. By number of deals, quarterly volume fell 20 percent from the
third quarter of this year but increased 23 percent compared to the value
registered during the third quarter of 2012.
Five of the eight IPOs of the quarter were IT-related IPOs representing 63
percent of the total issues for in the quarter. By location, seven of the
quarter's eight IPOs were by U.S.-based companies with China-based YY, Inc., an
operator of an online game community, rounding out the quarter's listings.
In the largest IPO of the quarter, Workday, Inc. (WDAY), a Pleasanton,
California-based developer of human resource enterprise solutions, raised $733
million and began trading on NASDAQ on October 11(th).( )
+----------------------------------------------+-------------------------------+
| | Q4 2012 |
+----------------------------------------------+---------------+---------------+
| | *Number of | |
| |Venture-Backed |Total Venture- |
| | IPO's in the |Backed Offering|
| Industry | U.S. | Size ($M) |
+------------------+---------------------------+---------------+---------------+
| |Computer Software and | | |
| |Services | 1 | 732.6|
| +---------------------------+---------------+---------------+
| |Internet Specific | 2 | 235.5|
| +---------------------------+---------------+---------------+
| |Communications and Media | 1 | 126.0|
| +---------------------------+---------------+---------------+
| |Semiconductors/Other Elect.| 1 | 41.4|
| Information +---------------------------+---------------+---------------+
| Technology | | 5 | 1,135.4|
+------------------+---------------------------+---------------+---------------+
| |Biotechnology | 2 | 167.2|
| +---------------------------+---------------+---------------+
| Life Sciences | | 2 | 167.2|
+------------------+---------------------------+---------------+---------------+
| |Industrial/Energy | 1 | 105.8|
| +---------------------------+---------------+---------------+
| | | 1 | 105.8|
+------------------+---------------------------+---------------+---------------+
| TOTAL| 8 | 1,408.4|
+----------------------------------------------+---------------+---------------+
Source: Thomson Reuters & National Venture Capital Association
*Includes all companies with at least one U.S. VC investor that trade on U.S.
exchanges, regardless of domicile
For the fourth quarter of 2012, five companies listed on the NASDAQ stock
exchange and three companies listed on the New York Stock Exchange. During
full year 2012, 30 companies listed on the NASDAQ stock exchange, while 18
listed on the New York Stock Exchange and one listed Over-the-counter.
Seven of the eight companies brought to market this quarter are currently
trading above their offering price. Of the 49 offerings for the year, 30 are
trading above their offering price. There are 27 venture-backed companies
currently filed publicly for IPO with the SEC. This figure does not include
confidential registrations filed under the JOBS Act.
Mergers and Acquisitions Overview
As of December 31(st), 95 venture-backed M&A deals were reported for the fourth
quarter of 2012, 26 of which had an aggregate deal value of $3.5 billion. The
average disclosed deal value was $135.5 million, a three percent increase from
the fourth quarter of 2011.
The information technology sector led the venture-backed M&A landscape with 65
of the 95 deals of the quarter and had a disclosed total dollar value of $1.6
billion. Within this sector, Computer Software and Services and Internet
Specific deals accounted for the bulk of the targets with 33 and 23
transactions, respectively, across these sector subsets.
+-------------------------------------+----------------------------------------+
| | Q4 2012 |
+-------------------------------------+------------+-------------+-------------+
| | | Number of | |
| | | Venture- | Total |
| | Number of | Backed M&A | Disclosed |
| | Venture- | deals with a| Venture- |
| | Backed M&A | disclosed |Backed Deal |
| Industry | deals | value | Value ($M) |
+-----------+-------------------------+------------+-------------+-------------+
| |Computer Software and | | | |
| |Services | 33 | 4 | 199.3|
| +-------------------------+------------+-------------+-------------+
| |Internet Specific | 23 | 4 | 101.7|
| +-------------------------+------------+-------------+-------------+
| |Communications and Media | 5 | 1 | 1,200.0|
| +-------------------------+------------+-------------+-------------+
| |Computer Hardware | 2 | 0 | 0.0|
| +-------------------------+------------+-------------+-------------+
| |Semiconductors/Other | | | |
| |Elect. | 2 | 2 | 110.5|
|Information+-------------------------+------------+-------------+-------------+
|Technology | | 65 | 11 | 1,611.5|
+-----------+-------------------------+------------+-------------+-------------+
| |Medical/Health | 16 | 11 | 1,604.5|
| +-------------------------+------------+-------------+-------------+
| |Biotechnology | 2 | 1 | 1.5|
| Life +-------------------------+------------+-------------+-------------+
| Sciences | | 18 | 12 | 1,605.9|
+-----------+-------------------------+------------+-------------+-------------+
| |Other Products | 4 | 1 | 158.0|
| +-------------------------+------------+-------------+-------------+
| |Consumer Related | 1 | 0 | 0.0|
| +-------------------------+------------+-------------+-------------+
| |Industrial/Energy | 7 | 2 | 147.9|
| Non-High +-------------------------+------------+-------------+-------------+
|Technology | | 12 | 3 | 305.9|
+-----------+-------------------------+------------+-------------+-------------+
| TOTAL| 95 | 26 | 3,523.2|
+-------------------------------------+------------+-------------+-------------+
Source: Thomson Reuters & National Venture Capital Association
The largest venture-backed M&A transaction completed during the fourth quarter
of 2012 was Cisco Systems $1.2 billion purchase of Meraki, Inc, a San Francisco
California-based developer of solutions for the deployment of wireless networks.
Deals bringing in the top returns, those with disclosed values greater than four
times the venture investment, accounted for 58 percent of the total disclosed
transactions during fourth quarter of 2012, on par with the third quarter of
this year. Venture-backed M&A deals returning less than the amount invested
accounted for 21 percent of the quarterly total.
Analysis of Transaction
Values versus Amount
Invested
+------------------------+-----------------+-----------+-----------+-----------+
|Relationship between | | | | |
|transaction value and | | | | |
|investment | Q1 12 M&A** |Q2 12 M&A**|Q3 12 M&A**|Q4 12
M&A**|
+------------------------+-----------------+-----------+-----------+-----------+
|Deals where transaction | | | | |
|value is less than total| | | | |
|venture investment | 7 | 3 | 8 | 5 |
+------------------------+-----------------+-----------+-----------+-----------+
|Deals where transaction | | | | |
|value is 1-4x total | | | | |
|venture investment | 7 | 12 | 7 | 5 |
+------------------------+-----------------+-----------+-----------+-----------+
|Deals where transaction | | | | |
|value is 4x-10x total | | | | |
|venture investment | 11 | 6 | 10 | 10 |
+------------------------+-----------------+-----------+-----------+-----------+
|Deals where transaction | | | | |
|value is greater than | | | | |
|10x venture investment | 3 | 10 | 7 | 4 |
+------------------------+-----------------+-----------+-----------+-----------+
|Total Disclosed Deals | 28 | 31 | 32 | 24 |
+------------------------+-----------------+-----------+-----------+-----------+
Source: Thomson Reuters
& National Venture
Capital Association
** Disclosed deals that do not have a
disclosed total investment amount are not
included
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial and risk, legal, tax and accounting, intellectual property and science
and media markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan, Minnesota,
Thomson Reuters employs approximately 60,000 people and operates in over 100
countries. Thomson Reuters shares are listed on the Toronto and New York Stock
Exchanges. For more information, go to
thomsonreuters.com.
About National Venture Capital Association
Venture capitalists are committed to funding America's most innovative
entrepreneurs, working closely with them to transform breakthrough ideas into
emerging growth companies that drive U.S. job creation and economic growth.
According to a 2011 Global Insight study, venture-backed companies accounted for
12 million jobs and $3.1 trillion in revenue in the United States in 2010. As
the voice of the U.S. venture capital community, the National Venture Capital
Association (NVCA) empowers its members and the entrepreneurs they fund by
advocating for policies that encourage innovation and reward long-term
investment. As the venture community's preeminent trade association, NVCA serves
as the definitive resource for venture capital data and unites its nearly 400
members through a full range of professional services. For more information
about the NVCA, please visit www.nvca.org.
CONTACTS
Emily Mendell
NVCA
1.610.565.3904
emendell@nvca.org
Lauren Herman
Thomson Reuters
1.646.223.5985
lauren.herman@thomsonreuters.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1667746]
