Several large consolidations drove a 127% increase in direct marketing merger and acquisition activity during the third quarter, according to a new report by New York-based investment bank Petsy Prunier.

During the third quarter, DM companies announced 70 transactions with a total aggregate value estimated at $15.7 billion. For the first nine months of 2003, there were 259 transactions with a total value estimated at $33.0 billion, an increase of 61% over the same period in 2002.

The DM industry transaction market was led in 3Q03 by Liberty Media’s acquisition of Compost’s 57.5% stake in QVC for an estimated $7.9 billion, according to the report. Other noteworthy deals from the quarter include Caremark’s announced acquisition of AdvancePCS and Yahoo!’s acquisition of Overture Services.

The Software segment of the DM industry showed transactions during the quarter totaling approximately $63.5 million. Fair Isaac acquired NAREX, a provider of analytic solutions for collections and recovery, in a $10 million cash transaction, while FindWhat.com announced plans to acquire Miva, a supplier of e-commerce software and services to small- and medium-sized businesses, for approximately $10 million in cash, stock and assumed liabilities.

Several large consolidations drove a 127% increase in direct marketing merger and acquisition activity during the third quarter, according to a new report by New York-based investment bank Petsy Prunier.

During the third quarter, DM companies announced 70 transactions with a total aggregate value estimated at $15.7 billion. For the first nine months of 2003, there were 259 transactions with a total value estimated at $33.0 billion, an increase of 61% over the same period in 2002.

The DM industry transaction market was led in 3Q03 by Liberty Media’s acquisition of Compost’s 57.5% stake in QVC for an estimated $7.9 billion, according to the report. Other noteworthy deals from the quarter include Caremark’s announced acquisition of AdvancePCS and Yahoo!’s acquisition of Overture Services.

The Software segment of the DM industry showed transactions during the quarter totaling approximately $63.5 million. Fair Isaac acquired NAREX, a provider of analytic solutions for collections and recovery, in a $10 million cash transaction, while FindWhat.com announced plans to acquire Miva, a supplier of e-commerce software and services to small- and medium-sized businesses, for approximately $10 million in cash, stock and assumed liabilities.