KPMG Corporate Finance’s Valuation Update for the Advertising and Marketing Services Industry

Microsoft Corp. (NasdaqNM:MSFT) acquired aQuantive, Inc.,
(NasdaqNM:AQNT) for US$66.50 per share in an all-cash transaction
valued at approximately US$6 billion. aQuantive, Inc., is a global
digital marketing company and is the parent company of Avenue A |
Razorfish, the largest interactive agency in the U.S.; Atlas, a
provider of integrated digital marketing technologies and expertise;
and DRIVEpm, MediaBrokers and Franchise Gator, performance media and
behavioral targeting businesses. The transaction price represents a
premium of approximately 93 percent over aQunitve's prior day's
closing share price. The purchase price implies a revenue multiple of
12.9x and an EBITDA multiple of 56.2x. (May 18, 2007)
WPP Group plc (LSE:WPP) acquired 24/7 Real Media, Inc.,
(NasdaqNM:TFSM) for US$11.75 per share in an all-cash transaction
valued at approximately US$649 million. 24/7 Real Media, Inc. is a
leading global digital marketing company, empowering advertisers and
publishers to engage their target audiences with greater precision,
transparency and return on investment. The offer price represents a
premium of 30 percent over the average closing price of 24/7 Real
Media's shares for the last sixty trading days. The purchase price
implies a revenue multiple of 3.0x and an EBITDA multiple of 103.0x.
(May 17, 2007)
Alliance Data Systems Corporation (NYSE:ADS), a leading provider of
loyalty and marketing solutions derived from transaction-rich data,
has agreed to be acquired by Blackstone Capital Partners V L.P., in a
transaction valued at approximately US$7.8 billion. The purchase price
represents a premium of approximately 30 percent over Alliance Data's
closing share price of US$62.96 on May 16, 2007. The transaction
value implies a revenue multiple of 3.2x and an EBITDA multiple of
13.6x. (May 17, 2007)
Acxiom(r) Corporation (NasdaqNM:ACXM) a provider of customer and
information management solutions, has agreed to be acquired by Silver
Lake and ValueAct Capital, in an all-cash transaction valued at US$3.0
billion. Under the terms of the agreement, Acxiom stockholders will
receive US$27.10 in cash for each outstanding share of stock. This
represents a premium of approximately 14 percent over the closing
share price on May 16, 2007, the last trading day before the intended
transaction was disclosed. The purchase price implies a revenue
multiple of 2.1x and an EBITDA multiple of 7.5x. (May 17, 2007)