SOURCE: Marlin & Associates

Marlin & Associates

March 05, 2009 08:59 ET

Marlin Predicts Significant M&A Activity Among Smaller and Middle Market Tech and Digital Information Companies Through 2010

NEW YORK, NY--(Marketwire - March 5, 2009) - A new report issued by Marlin & Associates New York LLC, a boutique investment banking advisory and consulting firm, offers insight and predictions about merger and acquisition transactions through 2010 among middle-market technology and digital information firms.

Drawing upon the firm's considerable experience and market sector knowledge, as well as third-party research, Marlin's report predicts that activity as measured by the number of transactions (not aggregate value) will remain healthy through 2010. The report forecasts that the vast majority of m&a transactions involving tech and digital information firms will be led by corporations with a strategic need, as opposed to financial sponsors, and that the overwhelming majority of those transactions (98%) will be for less than $250 million -- most will be under $100 million.

The report forecasts that VC and PE firms will be active at the smaller end of the tech market, but will largely remain on the sidelines through 2010 for mega deals in this sector. Conversely, the report projects that, through 2010, the IPO market for tech and digital information firms will be AWOL except for the largest such firms.

"M&A values for tech and digital information firms will favor strong, growing companies at the lower end of the middle market," says the firm's managing partner, Ken Marlin. "Most of the buyers will be 'Strategics.'"

The report, "M&A Outlook for Middle-Market Technology and Digital Information 2009-2010," is available for download at the firm's Website: www.MarlinLLC.com.

"We have to be careful about statistics and averages," says Marlin. "While the era of mega deals is on hiatus, we anticipate that the number of middle-market and smaller deals will remain relatively healthy for tech and digital media firms. There are still cash-rich companies on the hunt."

For the next two years, Marlin foresees corporations -- not financial sponsors -- dominating as both buyers and sellers, and strong, growing middle-market (and smaller) tech firms continuing to command strong multiples.

About Marlin & Associates

Founded in 2002, Marlin & Associates New York LLC is a boutique investment banking and strategic consulting firm focused on providing highly strategic, transaction-related services to U.S. and international middle-market firms engaged in technology, information, on-line media and business services. The firm is based in New York City with offices in Washington, DC and Toronto.

The firm has been the recipient of numerous awards, including being recognized as the "Middle Market Investment Banking Firm of the Year," as well as the "Middle Market Financing Agent of the Year - Equity." The firm also has been awarded honors in multiple "Deal of the Year" categories including:"Financial Technology Deal of the Year," "Financial Services Deal of the Year," "International Cross-Border Deal of the Year," and for "Middle Market Financing - Computer, Technology and Telecommunications Deal of the Year."

M&A professionals have advised on more than 200 successfully completed transactions in the technology and information services sector. Recent transactions on which Marlin & Associates has advised include the sale of Tenfore Systems Limited (London) to Morningstar, Inc. (NASDAQ: MORN); the sale of InfoDyne Corporation (Chicago) to IBM (NYSE: IBM); and the sale of StarMine Corporation of San Francisco to Thomson Reuters Corporation (NYSE: TRI). Marlin & Associates initiated these transactions, helped to manage the process, assisted in the negotiations, and acted as exclusive strategic and financial advisor to the sellers. Information about M&A, as well as information about other recent transactions on which M&A has advised, can be found at www.MarlinLLC.com.

Contact Information

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    Marlin & Associates New York LLC
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