THE CERBERUS GROUP SAYS INFORMATION INDUSTRY ACQUISITION AND MERGER VALUATIONS UP 13 PERCENT; OFFER PRICE/REVENUES HIT $1.50
THE CERBERUS GROUP SAYS INFORMATION INDUSTRY ACQUISITION AND
MERGER VALUATIONS UP 13 PERCENT; OFFER PRICE/REVENUES HIT $1.50
FRENCHTOWN, N.J., Oct. 13 /PRNewswire/ -- The Cerberus Group, Inc. said today that despite four years of consistently decreasing total value paid and net transaction announcements, valuations in the information processing technology industries remained strong indicating continued health and vitality.
The Frenchtown-based consultant and publisher of the Cerberus Report, Charles C. Varga, said that the average price/earnings (P/E) ratio paid within the information industry for all transactions supplying sufficient data reached 23.0x for the first six months of 1992, approximately 9 percent higher, as compared to an average of 21.0x for all industry sectors.
"Among publicly traded firms in the information industry, average P/E ratio dipped to 20.0x from 29.52x for the calendar year 1991 versus 1992," Mr. Varga said. Thus acquisition purchase price valuations as measured by P/E paid sustained a 13 percent increase over publicly traded firms," noted Mr. Varga. Corresponding, valuations as measured by offer price/revenue, reached an average of $1.50, for the first six months of 1992. Perceived valuations as measured by prices paid in the acquisition and merger marketplace are driven by an active public trading stock market, increased initial public offer (IPO) activity, competitive market pressures and continued industry restructuring, including the impact of new outsourcing strategies as a means of capitalizing inhouse information processing technology assets.
The Cerberus Report, applauded as the most thorough treatment of acquisition and merger activity available, is the only annually published analysis of offer price and related financial and statistical information in the computer software, services, communications, and information industry. Its acquisition and merger analysis celebrates its 10th year and has recorded more than 3,000 transactions in its valuation data base dating from 1969. Cerberus' merger analysis are available in its comprehensive publication, The Cerberus Report: 1992 Analysis of Acquisitions and Mergers in the Information Industry. The Cerberus Group publishes its analysis in cooperation with the following participants:
Alex Brown & Sons, Computer Services Group
Investment Dealers' Digest (IDD) Information Services
Merrill Lynch, Business Brokerage & Valuation
The Updata Group, Inc. & Tudor House Publications LTD.
Headquartered in Frenchtown, The Cerberus Group, Inc. specializes in primary and secondary research and analysis. For more information call or write Charles C. Varga, president.
/CONTACT: Charles C. Varga, president/publisher of the Cerberus Group, 201-996-2648/ CO: Cerberus Group, Inc. ST: New Jersey IN: FIN SU: ECO
TS-LR -- NY004 -- 9195 10/13/92 10:00 EDT