M&A Snapshot Q1 2011

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M&ASNAPSHOTQ1 2011

APRIL 2011

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M&ASNAPSHOT

OVERVIEW COMMENTARYM&A activity accelerated in Q1 2011 with a good overall tone.

M&A activity within the crucial $25 million - $1 billion transaction value rangein our sector was up 28% while median transaction size decreased slightly by7%. VC-backed company exits increased by 69% from the previous quarter.This quarters tone is shaped by large announced transactions includingAT&Ts $54b acquisition of T-Mobile, eBays $2.4b acquisition of GSICommerce and Qualcomms $3.6b acquisition of Atheros. These areimportant tone setters for the overall Internet | mobile | digital media M&A

market. These transactions illuminate the strategic importance of mobile data,e-commerce and Internet-connected devices.

Within the $25 million - $1 billion transaction value range, Google continues tolead the quarter with six acquisitions, three of which were done by Googlesbusiness unit, YouTube. Private companies Groupon, Facebook and Zyngaalso all remained active in this quarter.

We are also seeing an increase in M&A activity level in the Internet | mobile |digital media sectors from traditional IT vendors, as demonstrated byTeradata's purchase of Aster Data (after their acquisition of Aprimo lastquarter), Salesforces acquisition of Radian6 and Concurs acquisition of TripIt.We expect to see an increasing number of transactions where traditionalenterprise vendors tap into the value of consumer-based innovation andplatforms.

This past quarter, Architect Partners has published an M&A Alert on twentythree of the most important transactions in the quarter.

FOLLOWING ANALYSIS

M&ADASHBOARD:

NOTABLE ACQUIRERS:

M&ATRANSACTIONS:

OTHER NOTABLE TRANSACTIONS:

COMING SOON

ANALYSIS OF VC-BACKED M&AEXITS

SUMMARY OF QUARTERLY ACTIVITY INNUMBERS AND TONE

ACTIVE INFLUENTIAL BUYER ACTIVITY

SUMMARY OF TRANSACTIONS BETWEEN$25MM-$1B IN VALUE

SUMMARY OF NOTABLE TRANSACTIONS

WITHOUT ANNOUNCED VALUE ORABOVE $1B.

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M&ADASHBOARD

COVERAGEArchitect Partners tracks M&A activity within theconverging Internet | mobile | digital media sectors.

The following assessment is focused on M&A

transactions with announced values of between$25mm and $1B as these typically represent successfulbusiness-building endeavors.

MARKET TONEGood. Deepening base of acquirers.Transaction volume increases. Generally

balanced buyer/seller dynamics.

Note: 1) Includes all internet | mobile | digital media transactions regardless of transaction value.Transaction values within a range are presented as a mid-point value 3

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)(#)....

2010

Q1 Q2 Q3 Q4

2009

Q1 Q2 Q3 Q4

41%48%

43%38%

45%

55%52%

49%

$6 $5

$12 $12

4146

53

68

38 40

68

53

$100

$146

$85

$128

$75

$100 $98 $105

2011

Q1

68

$14

12

17 18 16

75

10

18

48%

$6

$9$11

$14

27

!"#$$ !%#$$ !"&$!'($

!"#$

$98

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NOTABLEACQUIRERS

The following acquirers are generally active or influential buyers within the Internet | mobile | digital media sectors. Below,

we highlight announced acquisitions in the first quarter of 2011.

4

ACQUIRER # TARGET

3

3

3

3

2

2

2

2

2

2

2

2

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NOTABLEACQUIRERS (continued)

5

ACQUIRER # TARGET

2

1

1

1

1

1

1

1

1

1

1

1

1

Certain Assets

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#ANNOUNCED

DATE ACQUIRER TARGET

NON-SERVICE PROVIDER TRANSACTIONS1 03/25/2011 Apax Partners Trader Corporation

2 02/20/2011 CSR plc Zoran Corporation

3 02/09/2011 Vacaciones eDreams Opodo

4 03/16/2011 MediaTek Ralink Technology

5 03/23/2011 Walgreens Drugstore.com

6 01/18/2011 Golden Gate PrivateEquity

Conexant Systems

7 03/24/2011 Mood Media Muzak Holdings

8 03/18/2011 Broadcom Provigent

9 03/30/2011 Salesforce.com Radian6

10 01/13/2011 Vitruvian Partners OpenBet Technologies

11 02/01/2011 Time Warner NaviSite

12 02/06/2011 AOL HuffingtonPost

13 03/21/2011 Shutterfly Tiny Prints

14 02/09/2011 GSI Commerce Football Fanatics

15 03/02/2011 Teradata Aster Data

TRANSACTIONVALUE ($mm) TARGET DESCRIPTION

AP INSIGHTSMM&A ALERT VC-BACKED

$761 Online and print media publishing company, providing directories, informationalsites and advertising services to businesses and individuals.

$645 Develops SoC solutions for the digital entertainment and digital imaging devicessuch as HDTV, set top boxes, converter boxes, digital camera and video editingsystem.

$615 Provides online travel services such as flight booking, car hires, travel advice andinformation on destinations.

$440 Provides WLAN chipset solutions for wireless home networking and broadbandaccess devices.

$436 Online provider of pharmacy products.!

$391 SoC solutions for set-top-boxes, home automation, digital devices and securitysystems.

$375 Provides digital signage networks, equipment and professional sound systems.

$360 Provides SoC chip solutions to fixed wireless networks, private wireless networks,and cellular infrastructure markets. !

$350 Provides a social media monitoring platform for marketing, communications andcustomer support professionals. !

$330 Develops interactive solutions for betting and gaming operators in the U.K.

$321 Provides cloud-based enterprise hosting solutions.

$315 Online website that contains articles on varying subjects including local andnational news, analysis and lifestyle articles on topics such as religion, health,sports, food, travel and womens issues.

!

$306 Online retail of chic photo cards and personalized stationery. !

$277 Provides online team and league-licensed merchandises.!

$263 Offers a database management system with embedded analytics capabilityoptimized to support large-scale data-intensive applications where near-real-time analytics provide significant value. !

M&ATRANSACTIONS: $25MM-$1B

Below highlights M&A transactions that have announced values of between $25mm and $1b announced in Q1 2011 within theconverging Internet | mobile | digital media sectors.

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Note: Transaction values within a range are presented as a mid-point value

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# ANNOUNCEDDATE ACQUIRER TARGET TRANSACTIONV AL UE ( $m m ) TA R GE T D ES CR IP TI ON AP INSIGHTSM

M&A ALERT VC-BACKED16 02/14/2011 Eurovestech, INVESCO

Asset Management,

Verlinvest

Toluna

17 03/22/2011 Inventec Inventec Appliances

18 02/17/2011 Nordstrom HauteLook

19 02/09/2011 Visa PlaySpan

20 01/06/2011 Skype Technologies Qik

21 02/22/2011 Golden Gate Capital Tollgrade

Communications

22 03/12/2011 Motricity Adenyo

23 01/13/2011 Concur Technologies TripIt

24 01/20/2011 Amazon.com LOVEFiLM

25 01/04/2011 Helios, Adlevo InterSwitch

25 02/02/2011 AFCV Holdings Answers

26 03/23/2011 GP Investments Sascar Tecnologia ESegurana AutomotivaS/A

27 02/07/2011 Diversified Agency

Services

Communispace

28 03/04/2011 CBS Interactive Clicker Media

29 01/31/2011 AOL Europe GoViral

30 02/04/2011 Cisco Inlet Technologies

$258 Provides online panel and technology services to the market research industry.

$256 Manufactures wire and wireless communication products such as handhelddevices (including smartphones, MP3 players, GPS devices) and networkappliances products.

$225 Offers an online private flash sale site. HauteLooks members (invited byreferrals of other members or registration on the site) enjoy online discounted

sale events for a limited period of time.!

$190 Provides a virtual goods payment platform for applications including online

games, social networks, digital storefront and online videos. !

$136 Offers mobile video streaming services which allows video communication viamobile phones. !

$129 Develops and supports test systems and status monitoring hardware and

software products for DSL, POTS, broadband and IP networks.

$125 Offers a mobile marketing platform enabling marketers to develop, execute,monitor and analyze mobile marketing campaigns. !

$120 Offers online and mobile software that enables travelers to manage, organize andshare travel booked on over 1,000 sites. !

$115 Offers subscription-based online streaming services for movies, TV series and

games available for PC, Internet TV (LOVEFiLM supports Sony and SamsungSmart TVs), Sonys Playstation, Microsofts Xbox, Nintendos Wii and DS. !

$110 Offers e-commerce and e-billing transaction switching and payment processing

services.

$103 Provides answer-based search services to users primarily through its Web site,Answers.com. !

$101 Offers vehicle and cargo tracking using GSM/GPRS technology.

$100 Offers online focus group services allowing enterprises and brand marketers to

listen to customers insights and address customers needs and demandseffectively.

!

$100 An Internet TV portal, guide and search engine that claims to have the onlycomplete directory of TV, movies and web se ries available online. !

$97 Distributes digital content-based campaigns, allowing users to create an onlinepresence for brands, in the U.K. !

$95 Provides video encoding and live streaming technologies that support adaptivebit rate (ABR) delivery of video. !

M&ATRANSACTIONS: $25MM-$1B (continued)

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# ANNOUNCEDDATE ACQUIRER TARGET TRANSACTIONVA LU E ($ mm ) TA RG ET D ES CR IP TIO N AP INSIGHTSM

M&A ALERT VC-BACKED31 03/22/2011 Finisar Ignis

32 02/10/2011 Dialog S emiconductor SiTel S emiconductor

33 01/25/2011 Orange DailyMotion

34 03/18/2011 Prime Rich Holdings Foxconn

35 03/04/2011 An unknown privateequity fund

iWeb Group

36 01/31/2011 Cavium Networks CelestialSemiconductor

37 03/08/2011 Google BeatThatQuote.com

38 01/18/2011 Adobe Demdex

39 01/19/2011 Ceragon Nera Networks

40 03/19/2011 Facebook Snaptu

41 02/27/2011 Vitruvian Partners Independent MediaDistribution

42 01/12/2011 Blackboard Presidium

43 02/02/2011 Match.com Humor Rainbow

44 03/23/2011 Polycom AccordentTechnologies

45 02/07/2011 HTC Saffron Media

$89 Develops fiber optical components for high-speed broadband networks.!

$87 Develops ICs for cordless communications and VoIP applications.

$80 Operates a YouTube-like video sharing website that allows users to search,discover, view, create, upload, download and share online videos. !

$70 Mobile handset manufacturer.

$65 Provides cloud-based enterprise hosting infrastructure solutions. Montreal-based.

$65 Provides SoC solutions for DTV, IPTV, Internet TV, and mobile media devices.

!

$61 Operates as a price comparison Web site in the U.K.!

$58 Offers SaaS-based software that captures, manages and analyzes behavioral dataderived by tracking consumer interactions with publishers websites and onlineadvertising campaigns.

!

$58 Develops fixed, wireless, and satellite communication equipment and systemssupporting mobile transmission networks, cellular base station transmission andwireless access solution for carriers.

$55 Creates rich mobile applications for feature phones. Snaptu has created featurephone-compatible applications for LinkedIn, Mashable, Twitter, Picasa, Facebookand ESPN Cricket. !

$54 Engages in content distribution business, including the digital delivery ofadvertisements and music videos to broadcasters.

$53 Provides online education services. Offers enrollment, financial aid andeducational technology services to 750 education institutions.

$50 Online dating Web site.

$50 Provides enterprise video management platform that allows Fortune 500organizations stream media presentations and implement enterprise webcasts.

$48 Provides mobile operators, handset OEMs and content owners a digital contentdelivery platform. Saffron offers a variety of products and services that allowspremium video content to be encoded in a variety of video formats, tagged andstored in a content library, retrieved on demand, security protected and streamedto a mobile device in a format optimized for that specific device.


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#ANNOUNCED

DATE ACQUIRER TARGETTRANSACTIONVALUE ($mm) TARGET DESCRIPTION


46 02/07/2011 HTC Saffron Media

47 01/28/2011 KIT Digital KickApps

48 01/20/2011 Yahoo!7 Pty Ltd. Spreets Pty Ltd.

49 03/16/2011 KIT digital TXT Polymedia

50 02/15/2011 Autodesk Scaleform

51 02/28/2011 Lumison BlueSquare Data

52 01/18/2011 Rightnow Q-go.com

53 03/06/201 1 Sony Unite d Kingdom Hawk-Eye InnovationsLimited

54 01/06/2011 Salesforce Dimdim

55 03/27/2011 Michael Rubin (GSI

Commerce's CEO)

70% stake in

ShopRunner and RueLa La and 100% in

Licensed SportsMerchandise Business

56 01 /28/2011 Telit M otorola Is rae l, m2mModules Division

57 02/24/2011 Vocus North Social

$48 Provides mobile operators, handset OEMs and content owners a digital contentdelivery platform. Saffron offers a variety of products and services that allows

premium video content to be encoded in a variety of video formats, tagged andstored in a content library, retrieved on demand, security protected and streamed

to a mobile device in a format optimized for that specific device.

$45 Provides SaaS platform that hosts, manages, and delivers media and community

applications (including social networking, user-generated content, online videoand viral widget), allowing customers to manage monetization and audience

growth.!

$40 Offers daily deals on various things to do, see, eat and buy online in Australia.

$39 Offers software that allows network operators, broadcasters and contentproviders to manage and deliver video content over IP-based networks.

$36 Provides user interface (UI) development tools and middleware for a variety of

gaming platforms.

$36 Provides colocation, Internet hosting and server solutions that support enterprise

IP networks and data centers.

$34 Provides SaaS-based Website search solutions.!

$32 Provides sports tracking devices that enable replay and tracks movement in sportgames. U.K.-based.

$31 Develops web conferencing solutions.!

$31 ShopRunner.com and Rue LaLa.com are two invite-only shopping sites. Licensed

Sports Merchandise Business operates online retail for licensed sportsmerchandising. The transaction represents businesses that were divested from

GSI Commerce, as a part of eBay's acquisition of GSI Commerce.

$26 Develops and implements m2m applications and modules for wirelesstechnologies such as GSM, GPRS, CDMA and WCDMA.

$25 Develops Facebook application that allows users create, manage and promotetheir businesses on the popular social network.

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#ANNOUNCED


BROADCAST SERVICE AND TELECOMMUNICATIONS SERVICE PROVIDER TRANSACTIONS1 02/01/2011 Dish Network DBSD North America

2 01/31/2011 Southern Cross Media

Group

Austereo Group

3 01/31/2011 Cumulus Media Cumulus MediaPartners

4 03/24/2011 Kapiri Investments TP EmiTel

5 01/19/2011 Hubbard Broadcasting BonnevilleInternational, 17 RadioStations

6 02/23/2011 Bragg Group Cable & WirelessBermuda

7 01/19/2011 LAP Green Network Sonitel

8 03/31/2011 Visafone

Communications

Multi-links, CDMA

Business

9 03/31/2011 Next-GenerationSatelliteCommunications

China UnifiednetHoldings

10 02/21/2011 Knology CobridgeCommunications,

Certain Cable andBroadband Operationsin Georgia and

Alabama

11 03/24/2011 Hyperion Telestar



BROADCAST SERVICE AND TELECOMMUNICATIONS SERVICE PROVIDER TRANSACTIONS$1,000 Satellite-based voice, data, and Internet services.

$903 Offers commercial radio broadcasting in Australia.

$740 Operates radio broadcasting stations.

$599 Offers TV broadcast infrastructure for TV stations and studios in Poland.

$505 Radio broadcasting stations.

$70 Offers residental and business internet and telephone services in Bermuda.

$64 Provides integrated telecommunication services in Nigeria.

$52 Provides CDMA mobile operation services in Nigeria.

$39 Provides broadband satellite services in British Virgin Islands.

$30 Operates cable and broadband telecommunication services.

$27 Operates interactive TV channel iTV in Poland.

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A number of important transactions were announced in the first quarter of 2011 with consideration in excess of $1b.

M&ATRANSACTIONS: OTHER NOTABLE

#ANNOUNCED


1 03/20/2011 ATT T-Mobile

2 01/05/2011 Qualcomm Atheros

3 03/27/2011 eBay GSI Commerce



$54,854 Provides wireless voice, messaging, and data services

$3,581 Develops semiconductor chips that enable WiFi, Bluetooth, GPS and powerline-based connectivity for a variety of w ireless devices such as smartphone, tablets,notebooks, gaming devices, digital home networking and Internet routers.

$2,381 Provides e-commerce and interactive marketing services


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Documents

M&A Snapshot Q1 2011