JEGI Corporate Capabilities Brochure

Independent Investment Bankingfor Media, Information, Marketing Services & Technology

Since 1987

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 & ceothe jordan, edmiston group, inc.

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.

MediaInformation

Marketing ServicesTechnology

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 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

“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

Emerging High-Growth Companies

Private Equity, Venture Capital and

Debt Investors

Diversified Media, Information and

Marketing Companies

Major Interactive and Technology Companies

JEGI - At the Core of the Market

jegi timeline1987

has acquired

a global digital marketing servicesand technology company

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.

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.

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

“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.

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.

has sold

to

a leading financial informationand investing education website

for $42,000,000

1990

Select Recent JEGI Media Transactions

a division of DMGT plc

a portfolio company of

has sold its

to

NORTH AMERICANCONSUMER HOME SHOWS

for $53,000,000

has sold

to

a leading provider of specializedmarketing events for the IT sector

Vision Events

has been soldto

a leading online B2B media company providing e-newsletters,

web sites, webinars, and live events

has been soldto

7

a leading publisher of online communitiesfor parents and parents-to-be

the premier provider of congressionalnews, insight and analysis

has announced the sale of

a wholly owned subsidiary ofTHE ECONOMIST GROUP

to

TIMES PUBLISHING COMPANY


and related assets

has sold

to

THE CALIFORNIA GIFT SHOWHARTCOURT RELIGION PUBLISHERSa producer of religious education

series for elementary school studentsand religion programs

has sold

to

has acquiredthe remaining 51% interest in

for $155,000,000

GEORGE LITTLE MANAGEMENT

the leading custom publisherserving the U.S. community

hospital marketplace

a H.I.G. Capital portfolio company

has been soldto

has sold

COURTENAY COMMUNICATIONS

and iMARKETINGNEWS magazines and related online and newsletter assets

to

an innovative consumer health search engine

has been soldto

has sold

to

the leading teen-oriented user generated content site

has sold

to

CMP ENTERTAINMENT MEDIA

for $47,000,000

has sold

to

a group of seven Canadian industrialand manufacturing tradeshows

a new entity formed by

has acquired

from

�e Hollywood Reporter, Billboard, Adweek, Brandweek, MediaWeek, Clio Awards, Backstage, Film Journal International,

and Film Expo Business

E5 GLOBAL MEDIA

andPLURIBUS CAPITAL

a leading source of news, features andadvice for developers and IT professionals

has sold

to

TELEVISION GROUP

an affiliate of

has sold its

to

a division of

the premier provider of intelligenceand analysis on state and local government

has sold

to

the leading business-to-businessmedia brand focused on theinformation needs of c-leveland senior finance executives


has sold

to

CFO PUBLISHING HOLDINGS, INC.

has sold

to


for $42,000,000

a division DMGT plc

has sold its

to

ALBERTA GIFT SHOWand MONTREAL GIFT SHOW

INTERIOR DESIGN,FURNITURE/TODAY and

SIX SISTER PUBLICATIONS and RELATED ONLINE ASSETS

has sold

to

a division of

ELECTRONIC DESIGN NEWS,DESIGN NEWS, TEST &

MEASUREMENT WORLDand PACKAGING DIGEST

has soldthe U.S. assets of

to

a division of

LIBRARY JOURNAL andSCHOOL LIBRARY JOURNAL

has sold

to

a division of


a leading local media andmarketing services provider

has sold

to

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.

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.

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

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.

the college textbook publisher and online reference information service provider

has sold

to

CONGRESSIONAL QUARTERLY, INC.

2000

Information

Select Recent JEGI Information Transactions

the premier research, data and analysisfirm for the temporary staffing industry

has been soldto

a leading healthcare newsletterpublisher in conjunction with

The John Hopkins University andThe University of California at Berkeley

has been soldto

has sold

to

a leading provider of corporate governance,risk and compliance news, analysis,databases and events for financial

and legal executives at public companies

FINANCIAL MEDIAHOLDINGS GROUP


has sold

to


a unit of

has been soldto



has sold

to

CFO PUBLISHING HOLDINGS, INC.

has been soldto

a leading business informationprovider serving the mutual fund,

asset management and corporate board markets

has been soldto

a leading social media analytics company

a division of the TNS Group

has acquired

the leading online marketplacefor buyers and sellers of products

and services

has been soldto

a leading database provider of robust product and pricing solutions

GF CapitalManagement& Advisors, LLC

in conjunction with

has completed a tender offerfor the outstanding shares in

a leading information providerto the aviation industry

&

has been soldto

a leading provider of anti-money laundering information, conferences

and training

a specialist in anti-money laundering and fraud detection technology

has been soldto

a Pfingsten Partners portfolio company anda leading provider of B2B media for the

financial services, art and industrial markets

a Wind Point Partners portfolio company in partnership

with CEO William F. Reilly

has been soldto

a leading provider of technologymarket research, intelligence and

demand generation services

has been soldto

a leading provider of educationand career guidance

has sold

to

the leading information provider ofhigh-value investment advice to the

self-directed investor market

PHILLIPSINVESTMENT RESOURCES

has been soldto

the premier provider of business intelligence for the international trade

and transportation industry

for $152,000,000

has been soldto

a leading developer of drug informationdatabases, software, and clinical

information solutions

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

products and services

has been soldto

a leading information providerto the IT market

a portfolio company ofNAUTIC PARTNERS LLC

andALTA COMMUNICATIONS

the provider of medical information to the healthcare, pharmaceutical and

biotechnology industries

has sold

to

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

and asset management industries

an

portfolio companyin partnership with Jim Casella

has been soldto




to


has secured $12 millionin growth capital

from

a leading distributor of companydata and public filings for equities,

mutual funds and a varietyof other pubicly traded assets

has been soldto

a provider of content, data, advertising, and career services

for the oil and gas industry

for $39,000,000

a leading provider ofBanking Information and Analytics

has been soldto

Marketing ServicesAdvertising, 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 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

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.

the leading provider of consumershopping predictive targeting data

has been soldto

a division of

for approximately $100 million

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.

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.

2004

Select Recent JEGI Marketing Services Transactions

an independent research company forglobal leaders in business and technology

has acquired

from has been soldto

the leader in mobile measurementhas accepted

a strategic investmentfrom

a premiere online advertising network

operator ofIntercept Interactive, Inc.

has been soldto

a leading information services and technology provider of

fulfillment and customer relationship management solutions

anda portfolio company of

TINICUM CAPITAL PARTNERS, L.P.

has solda majority interest to

a leading medical education andcommunications holding company

a leading mobile messagingand marketing platform

has been soldto

for approximately $95,000,000

an online behavioral targeting network

has been soldto


has been soldto

has sold

to

the leader in domainname asset management

has been soldto

a leading provider of experientialand event marketing services

has been soldto

a leading provider of loyalty marketing services

a leading provider of lead generation and customer acquisition marketing services


has been soldto

W O R L D W I D E

has solda significant investment

a leading online media companyfocused on brand advertising sales

to

has been soldto

for $58,000,000

has been soldto



has been soldto

the largest provider of online videoadvertising and management solutions has been sold

to

the premier online lead generation portal for the business software industry

has been soldto



a leading online permission-basedmarketing and lead generation firm


has sold

to

a leading research and advisory firmserving the IT industry

has been soldto

has acquired


has been soldto

a leading marketing technologycompany providing interactive

video communications

a leading full serviceinteractive marketing agency

has been soldto

a leading interactive marketing agencyand CRM solutions provider

a division of

has been soldto


has been soldto

a division of

for approximately $100 million

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.

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.

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%.

has been soldto

the leader in mobile measurement

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

Technology

2011


has been soldto

has been soldto





has been soldto

for $58,000,000

has been soldto



has been soldto

a leading interactive advertisingtechnology company

has been soldto

the premier online lead generation portal for the business software industry



has been soldto

has been soldto

a leading developer of drug informationdatabases, software, and clinical

information solutions

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

products and services

Select Recent JEGI Technology Transactions

has been soldto

the leader in mobile measurementhas accepted

a strategic investmentfrom





to


has been soldto

has acquired


and services

has been soldto

the largest provider of online videoadvertising and management solutions

has been sold to

for$40,000,000

a leading library automationsoftware and services company

has been soldto

PLS PARTNERS, LLC


from



has been soldto



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 best-practices 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.

Attendee Program Guide

Media Growth Trends Issues and Opportunities January 2011

Center for Exhibition Industry Research

Digital + Exhibiting Marketing Insights 2010Improving 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.

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.

At this critical juncture, the Center for Exhibition Industry Research (CEIR) has again partnered with George P. Johnson Experience Marketing to explore the intersection between digital and exhibit marketing, providing data to guide strategy, allocate budget, audit capabilities and benchmark results.

Co-produced with The Jordan, Edmiston Group, Inc. (JEGI) and with the support of the Event Marketing Institute, this year’s report highlights the evolution of the industry’s approach to digital, with a special focus on the purpose of different digital tactics and their use across various stages in the event lifecycle. The findings reveal that the exhibition industry is finding digital, in its many forms, to be an excellent means of increasing reach and improving efficiency.

As expected, respondents report an increasing use of digital media across the board, yet some channels are more frequently leveraged than others. Interestingly, exhibition and event marketers seem to be using conventional digital communication methods, such as e-mail and website “platforms,” to build new tactics such as social media, choosing incremental integration over outright revolution.

The significant uptick in digital usage and investment among marketers in the exhibition industry speaks to the evolution of the exhibition engagement model and how quickly marketers in this space are making strides to enhance the attendee experience, deepen engagement and measure performance.

Specifically created for exhibition and event marketing executives with P&L responsibility, the 2010 Digital + Exhibit Marketing Insights study sheds light on where this community can focus its energies to yield optimal results. The data can be used to create the case for increased exhibition marketing budgets, to link more closely with digital assets, and to deliver better results.

Co-produced with

MC 45

INSIDE:

Top Ten Facts ....................................................... 2

Methodology ........................................................ 3

Digital Media Taxonomy ....................................... 4

Digital Marketing Best Practices .......................... 5

The Right Digital Tools at the Right Time .............. 7

The Rise of Digital Strategy in the Exhibition Industry ............................................. 10

The Reality of Virtual Media ................................ 12

The Big Picture: Digital vs. Traditional Spend ...... 15

Promotional Performance and ROI ...................... 18

Measurement .................................................... 20

Conclusion and Recommendations .................... 22

Index of Figures ................................................. 23

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.

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.

Jason Birke, Vice President

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

“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.”

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

Thought Leadership

Our Team Sets Us Apart

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.

Sam Barthelme, 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.

Outsell, the leading provider of marketresearch and intelligence for the informationindustry, and The Jordan, Edmiston Group,Inc. (JEGI) collaborated on the fourth annualOutsell Signature Event “Driving Growth inthe Age of Experience,” held September 29 toOctober 1 at the beautiful Ritz-Carlton, KeyBiscayne, Florida.

The event is the only global conference con-vening CEOs, COOs, Presidents, andManaging Directors from across the informa-tion industry. Senior executives and thought-leaders presented case studies, practical strate-gies, and actionable advice, offering attendeesan unparalleled opportunity to learn how theindustry is successfully executing on businessmodels, strategies, and growth.

Nearly 150 c-level executives from around theworld shared their views and explored thefuture of the information industry, a nearly$400 billion market. Excerpts from four “on-the-record” presentations follow:

2011 Information Industry OutlookAnthea Stratigos, Co-Founder & CEO, Outsell

In 2010, the information industry generated$366 billion of revenue, with 25%+ comingfrom news providers and publishers. Search(14.6% of the industry’s revenue), Education& Training (13.3%), and Credit & FinancialInformation (11.6%) are the other large pro-ducers of information industry revenue.

Approximately 1,000 of the 7,000 informationcompanies in Outsell’s database have revenueover $10 million – a highly fragmented mar-ketplace. Of these 1,000, only 70 (7%) grewover 10% in 2010. These companies have oneor more of the following key characteristics:

1) niche focused (Onvia, K12) or scalefocused (Pearson, Thomson Reuters, Cengage); 2) acquisitive and aggressive managers of

their product/service portfolios; and/or 3) heavily involved in interactive media,

especially search and social media/crowd-sourc-ing (Huffington Post, Manta).

Outsell’s benchmarking analysis, which isderived from 60 companies, shows that rev-enue from new products launched in the past18 months comprised 19% of total revenue,up from approximately 12% of total revenuein prior years. This could be a function of therecession, as new, less expensive or digitalproducts grab market share and are indicativeof the industry’s innovation. The key spend-ing buckets – IT, Sales, and Marketing – wereup 6%, 18%, and 5%, respectively, overall in2010, with large company spending in thoseareas lagging behind.

Information Industry PerformanceThe information industry is expected to showlittle growth for 2010 compared to 2009.Revenue for the industry fell (8.4%) in

(continued on page 4)

October 2010 Independent Investment Banking for Media, Information, Marketing & Related Technology

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 first three quarters of 2010 saw 651 M&A transactions worth $32.9 billion announcedacross the media, information, marketing services and technology sectors, as tracked byJEGI. The number and value of M&A transactions in the first three quarters of 2010increased 42% and 95%, respectively, over 2009 levels. The surge was led by corporate buy-ers driving 86% of the transactions announced. These “strategic” buyers have unprecedent-ed 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 AboundQ3 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)

Strong Uptick in 2010 M&A Led by Corporate Buyers

To subscribe to JEGI’s Client Briefing Newsletter: www.jegi.com/subscribe.php

JEGI hosted its third Emerging Company Dinnerof 2010 on October 14th at the 21 Club in New YorkCity. (From left) Michael Barrett, CEO, AdMeld;Matt Petersen, SVP, Hearst Magazine Group;Rishad Tobaccowala, Chief Strategy & InnovationOfficer, VivaKi; Wilma Jordan, Founder & CEO,JEGI; and Matthew Egol, Partner, Booz &Company.

Follow JEGI on Twitter:http://twitter.com/JordanEdmiston

Outsell’s Signature Event: Driving Growth in the Age of Experience

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.

Our Mission

Is…

2008-2009 Tech M&A Banking ReviewTop Advisors for US Technology M&A Deals — Internet Transactions

20082009

Rank Advisor # Deals

1 The Jordan, Edmiston Group 52 Bank of America/Merrill Lynch 32 Lazard 32 Petsky Prunier 32 UBS 33 Allen & Co. 23 Deutsche Bank 23 Morgan Stanley 2


1 The Jordan, Edmiston Group 72 Goldman, Sachs & Co. 43 Bank of America 33 Berkery, Noyes & Co. 33 Deutsche Bank Securities 33 JP Morgan 33 Lazard 33 MESA 3

source: 451 group

Bloomberg 2008-2010 M&A League Tablestop advisors serving the us media, internet and marketing sectors*

2008-20102010


1 Jordan Edmiston Group 182 Morgan Stanley 113 Goldman Sachs & Co. 94 RBC Capital Markets 64 Deutsche Bank 64 JP Morgan 64 Ernst & Young 68 Bank of America Merrill Lynch 58 PwC 58 Deloitte Touche Tohmatsu 5


1 Jordan Edmiston Group 482 Morgan Stanley 353 Goldman Sachs & Co. 344 JP Morgan 285 Bank of America Merrill Lynch 276 Ernst & Young 257 Citi 248 Deutsche Bank 238 Credit Suisse 2310 KPMG Corp Finance 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.

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

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

june 2009

HARTCOURT RELIGION PUBLISHERSa producer of religious education

series for elementary school studentsand religion programs

has sold

to

may 2009


and related assets

has sold

to

THE CALIFORNIA GIFT SHOW

july 2009

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

and asset management industries

an

portfolio companyin partnership with Jim Casella

has been soldto

august 2009




to


JEGI Transactions, 2006-2011YTD

october 2009

a leading online permission-basedmarketing and lead generation firm


has sold

to

january 2010

a leading research and advisory firmserving the IT industry

has been soldto

december 2009

a new entity formed by

has acquired

from

�e Hollywood Reporter, Billboard, Adweek, Brandweek, MediaWeek, Clio Awards, Backstage, Film Journal International,

and Film Expo Business

E5 GLOBAL MEDIA

andPLURIBUS CAPITAL

december 2009

a leading library automationsoftware and services company

has been soldto

PLS PARTNERS, LLC

november 2009

a leading source of news, features andadvice for developers and IT professionals

has sold

to

january 2010



has sold

toCFO PUBLISHING HOLDINGS, INC.

november 2009

a unit of

has been soldto

november 2009

the premier provider of intelligenceand analysis on state and local government

has sold

to

november 2009

TELEVISION GROUP

an affiliate of

has sold its

to

a division of

april 2010

a division DMGT plc

has sold its

to

ALBERTA GIFT SHOWand MONTREAL GIFT SHOW PUBLISHERS WEEKLY

april 2010

has sold

to

a division of

PWxyz, LLC



february 2010

has soldthe U.S. assets of

to

a division of



february 2010

has soldthe Asia-based assets of

to

a division of

INTERIOR DESIGN,FURNITURE/TODAY and

SIX SISTER PUBLICATIONS and RELATED ONLINE ASSETS

march 2010

has sold

to

a division of

LIBRARY JOURNAL andSCHOOL LIBRARY JOURNAL

february 2010

has sold

to

a division of


january 2010


from



june 2010

has acquired


JEGI initiated this transaction on behalf of Hearstand acted as Hearst’s exclusive financial advisor.

has been soldto



september 2010 august 2010

has sold

to


for $42,000,000

has been soldto

a provider of content, data, advertising, and career services

for the oil and gas industry

august 2010

for $39,000,000

a leading interactive marketing agencyand CRM solutions provider

a division of

december 2010

has been soldto

a leading local media andmarketing services provider

november 2010

has sold

to


november 2010

has been soldto

a division of

a leading full serviceinteractive marketing agency

october 2010

has been soldto

a leading provider ofBanking Information and Analytics

november 2010

has been soldto

september 2010


has been soldto

may 2007



to

may 2007

the leading custom publisherserving the U.S. community

hospital marketplace

a H.I.G. Capital portfolio company

has been soldto

july 2007

a leading provider of lead generation and customer acquisition marketing services


has been soldto

W O R L D W I D E

june 2007


has been soldto

june 2007

a portfolio company ofThe Wicks Group

a provider of media products andservices for the Catholic community

has acquired

Resources forChristian Living

march 2009

a leading mobile messaging and marketing platform

has been soldto

february 2009

the provider of medical information to the healthcare, pharmaceutical and

biotechnology industries

has sold

to

december 2008

has sold

to

a business unit that serves theglobal software testing

and performance community

an integrated B2B media company

REDWOODCOLLABORATIVE MEDIA


november 2008


has been soldto

july 2008



has sold its

to

NORTH AMERICANCONSUMER HOME SHOWS

for $53,000,000

november 2008


has been soldto

july 2008

a leading healthcare newsletterpublisher in conjunction with

The John Hopkins University andThe University of California at Berkeley

has been soldto

july 2008

has sold

to

a leading provider of corporate governance,risk and compliance news, analysis,databases and events for financial

and legal executives at public companies

FINANCIAL MEDIAHOLDINGS GROUP

may 2008

has been soldto

the leader in mobile measurement

february 2008

has sold

to

a leading provider of specializedmarketing events for the IT sector

Vision Events

january 2008

has solda majority interest to

a leading medical education andcommunications holding company

january 2008

has been soldto

a membership association providingcertification, training and events to

IT professionals

january 2008

has been soldto

a leading online B2B media company providing e-newsletters,

web sites, webinars, and live events

january 2008

has been soldto

a leading business informationprovider serving the mutual fund,

asset management and corporate board markets

may 2008


has sold

to


march 2008

has been soldto





march 2008

has accepteda strategic investment

from



december 2007

has sold

to

the leader in domainname asset management

november 2007

in conjunction with

has completed a tender offerfor the outstanding shares in

a leading information providerto the aviation industry

&

january 2008

has been soldto

a leading provider of experientialand event marketing services

november 2007

has been soldto

for $58,000,000

october 2007

has been soldto

a leading provider of loyalty marketing services

october 2007

has acquiredthe remaining 51% interest in

for $155,000,000

GEORGE LITTLE MANAGEMENT

july 2008

an independent research company forglobal leaders in business and technology

has acquired

from

december 2007

has been soldto

7

a leading publisher of online communitiesfor parents and parents-to-be

JEGI Transactions, 2006-2011YTD (continued)

june 2006

has been soldto

a leading producer of executiveconferences for Fortune 1000 CIOs

may 2006

has been soldto

a leading provider of governance information and education services

june 2006

has been soldto

the largest provider of online videoadvertising and management solutions

june 2006

has sold

to

VIBE VENTURES

the leading integrated media companyserving the urban music and

lifestyle category

june 2006

has been soldto

a leading producer of legal, financialand marketing conferences

JEGI Transactions, 2006-2011YTD (continued)

june 2006

has sold its

to

REED NEW PRODUCT DIVISIONa portfolio of B2B magazinesand online assets serving the

manufacturing and scientific industries

ADVANTAGE BUSINESS MEDIAa portfolio company of

june 2006

has been soldto

a Hong Kong based provider of financial newsletters, conferences and databases

to the Asian private equity and venture capital communities

june 2006

has sold its

to

US based Industrial & Manufacturingevents portfolio and complementaryPOWDER/BULK SOLIDS Magazine

an APPRISE MEDIA CompanyC A N O N C O M M U N IC A T IO N S L L C

july 2006

has been soldto

the premier provider of business intelligence for the international trade

and transportation industry

for $152,000,000

july 2006

has been soldto

a leading provider of educationand career guidance

september 2006

has been soldto

a Great Hill Partners portfoliocompany and the leading event and

online company serving the auto tunerand sports compact performance market

ACTION PURSUIT GROUPa portfolio company of

september 2006

has been soldto

the country’s premier multi-platform media company

dedicated to yoga

september 2006

has sold

to

CMP ENTERTAINMENT MEDIA

for $47,000,000

november 2006

has been soldto

a Pfingsten Partners portfolio company anda leading provider of B2B media for the

financial services, art and industrial markets

a Wind Point Partners portfolio company in partnership

with CEO William F. Reilly

october 2006

has solda significant interest

to

an interactive direct marketing agency

october 2006

has sold

to

the leading teen-oriented user generated content site

september 2006

has been soldto



december 2006

has been soldto

a leading provider of anti-money laundering information, conferences

and training

a specialist in anti-money laundering and fraud detection technology

december 2006

has sold

to

a group of seven Canadian industrialand manufacturing tradeshows

december 2006

has sold

to

WOODWORKING MACHINERY& SUPPLY and SIBO tradeshows

january 2007

has sold

to

the leading information provider ofhigh-value investment advice to the

self-directed investor market

PHILLIPSINVESTMENT RESOURCES

january 2007

has been soldto

a leading database provider of robust product and pricing solutions

GF CapitalManagement& Advisors, LLC

january 2007

has been soldto

producer of the world’sonly color-coded Bible


january 2007

has acquired


and services

april 2007

has secured

a global, live entertainmentproduction and marketing company

$10,000,000in Series C financing

from

The Festival Network

april 2007

a provider of leading proprietaryInternet content sites

for mobile technology products

has been soldto

february 2007

has sold

COURTENAY COMMUNICATIONS

and iMARKETINGNEWS magazines and related online and newsletter assets

to

january 2007

has been soldto

a full service tradeshowmanagement company

february 2007

has been soldto



january 2007

has acquired

an internationally acclaimedproducer of destination-based musicfestivals including the Newport Jazz

Festival and 16 other branded festivals, tours and concerts

a global, live entertainmentproduction and marketing company

The Festival Network

“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

Testimonials

The Jordan, Edmiston Group, Inc.150 East 52nd Street, 18th FloorNew York, NY 10022

Phone: 212.754.0710Fax: 212.754.0337Web: www.jegi.com

Documents

JEGI Corporate Capabilities Brochure