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Indian Publishing, Media & Entertainment: the flavor this quarter! |
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Wednesday, 29 October 2008 |
The quarter - Q3 2008 saw Indian Publishing, Media & Entertainment outsourcing companies attracting funds from the PE/VC community. With current revenues around half a billion dollars and presence of more than 100 vendors, the Indian publishing offshoring industry is quite mature. The service providers are exploring new segments beyond the traditionally-focused STM publishers. Also, with the Indian animation industry moving towards offering world class products and services, VC/PE firms seem to have become increasingly interested in the segment.
This quarter (Jul-Sep 2008) there are instances of venture capital funds investing in small and mid-cap Indian companies in the Publishing, Media & Entertainment segment. Some of the key acquisitions are recorded below:
Acquisitions in Publishing, Media & Entertainment segment in this quarter (Jul-Sep 2008):
| Acquirer |
Target Company |
Location |
Acquired company’s services |
Deal Size (USD) |
| NEA Indo-US Ventures |
Pre-Media Global USA Inc |
India |
Media services, animation, and e-learning, in the US, Europe, and India |
$4 m |
| Pac-Link |
Ultizen Games |
United States |
The company's studio offers development services including game design, porting, programming and art |
$6 m |
| Draper Fisher Jurvetson and NEA IndoUS Ventures |
Pressmart Media Ltd |
India |
Print-to-digital delivery service |
$6 m |
| Helion Venture Partners |
9.9 Mediaworx Pvt. Ltd. |
India |
Media & Entertainment services |
$6.5 m |
Source: ValueNotes Research
Acquisition Highlights
The total number of acquisition deals recorded by ValueNotes this quarter was 32 (Jul-Sep 2008), compared with the last quarter’s 35 deals (Apr-Jun 2008). The largest acquisition was by CSL Ltd., which took over Talecris Biotherapeutics.
The average acquisition deal size this quarter was $372.59 m as compared to the last quarters $3.78 b which was skewed due to the $13.9 b takeover of EDS. If this deal were to be excluded, the average deal size would come down to $164.29 m. Another major acquisition in Q3 2008 has been that of TMF by Doughty Hanson for 1.19 b.
Overview of the Quarter’s contracts
Outsourcing activity picked up in this quarter (Jul-Sep 2008), compared to the previous quarter. The total number of BPO/KPO contracts recorded in this quarter (Jul-Sep 2008) was 87 as against 58 in Q2 2008 (Apr-Jun 2008) and 78 in Q1 2008 (Jan-Mar 2008).
The total value of contracts (publicly declared) in Q3, 2008 was $4.41 b, around 39% higher than $3.18 b in the last quarter. However, the average deal size has been lower this quarter ($163.3 m) compared to that of the last quarter ($208.43 m) reflecting of an overall trend towards smaller size contracts being awarded by companies. The largest number of contracts (37) was signed in August 2008. The largest contract this quarter was the $1.2 b human resources outsourcing contract awarded by Transportation Security Administration (USA) to Lockheed Martin Corporation in July 2008.
This analysis is based on deal data extracted from the ValueNotes Outsourcing DealTracker, which tracks contracts, M&As and PE/VC deals in the BPO/KPO sector.
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