Mobile M&A volume increases 45% year-over-year

Merger and acquisition activity in the media, information and marketing services sector suffered a dramatic drop in the first half of 2009 according to research firm The Jordan Edmiston Group Inc.--while 426 M&A deals valued at $22.4 billion were brokered during the first six months of 2008, just 300 deals valued $5.3 billion were reported over the previous six months. The one exception: The mobile media and technology segment. According to JEGI, there were 16 mobile M&A agreements executed in the first half of 2009, valued at $148 million--by comparison, 11 deals valued at $107 million were reported in the first half of 2008, a 45.5 percent increase in deal volume and a 38.4 percent leap in financial worth.

The overall M&A market remained moribund in Q2 2009, with 171 announced transactions valued at $4.1 billion. However, JEGI notes it has witnessed a definite uptick in M&A activity in recent weeks, crediting adjusted seller expectations and renewed buyer confidence. JEGI adds that strategic buyers are the dominant force behind the surge in mobile M&A activity, citing online retail behemoth Amazon.com's acquisition of image recognition solutions provider SnapTell as well as mobile payment solutions firm Boku's purchase of rivals Paymo and Mobillcash. JEGI notes that mobile social networking and mobile content are also key areas of investment.

For more on the JEGI M&A report:
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