Interactive and digital claim most M&A activity in Q2 2009

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Investment bank Petsky Prunier released a trend report highlighting M&A and investment activity in the second quarter of 2009. It reveals continued slowdown for marketing, information and digital media investment volume and value. Bright spots in interactive and digital advertising were driven primarily by venture capital and corporate investments in social media, online video, mobile marketing and software-as-a-service e-mail marketing.

Aggregate quarterly deal volume was down 17% from the first quarter of 2009, according to the report. The value of the transactions in marketing, information and digital media was $2.4 billion this quarter, a 6% decline since last quarter and a 68% decline compared with Q2 2008.

Preliminary information released on the data and analytics marketplace indicates a similar precipitous decline in overall value for these sectors as well. The marketing services segment ended at $261 million this year, down 72% compared with Q2 2008. This sector has rebounded from the dip it saw in first quarter, when transactional values were at $59 million. A full report on the data and analytics sector will be released July 7.

Most of the investment in marketing, information and digital media came from venture and growth capital investors. Petsky Prunier partner John Prunier noted in a company statements that this investment type was the current “relative sweet spot” in the market. He also clarified that exit horizons for investors are longer and lower in value than they were when many funds were raised in better times.

Draper Fisher Jurvetson, which was the most active investor this quarter in the marketing, information and digital media space, put money behind AdMob, GoodGuide, PubMatic, RippleTV, ThinkVine and SocialText.

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