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Industry Update: E-Commerce Industry M&A – June, 2016

June, 2016.

E-Commerce M&A continues to see strong activity. YTD 2016 transaction volume of 166 deals is on pace with 2015 levels. During 2015, there were 320 transactions.

For Year-to-Date 2016, strategic buyers accounted for 87% of the e-commerce M&A transactions with financial buyers making up the difference. During 2015, strategic buyers accounted for approximately 80% of the transactions.

For announced transactions (albeit a limited sample size), e-commerce multiples saw 9.7x EBITDA and 2.0x revenue in Year-to-Date 2016.

Peakstone equally weighted e-commerce index continues to outperform the S&P 500.

Notable publicly announced transactions:

– Salesforce.com Inc. announced the acquisition of Demandware Inc. for approximately $2.8 billion.

– GP Investments Acquisition Corp. entered into a definitive agreement to acquire WKI Holding Company, Inc. for approximately $741 million.

– MKS Instruments, Inc. signed a merger agreement to acquire Newport Corp. for approximately $1 billion.

– Dalian Wanda Group Corporation Ltd. agreed to acquire Legend Pictures, LLC for approximately $3.5 billion.

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