Tech M&A Outlook - presented by Mgi research bloomberg l.p. march 2012 conference tech m&a.pptx

TECH M&A  Prepared for Bloomberg, L.P. MARCH 2012 Disclaimer: Informa0on is furnished on as is basis. No warranty, wri;en or implied as to the accuracy of the data. Not responsible for typographical or reproduc0on errors. Not an oﬀering to buy or sell securi0es of any kind. Does not represent investment advice in any form. contact +1 (888) 801-3644 info@mgiresearch.com www.mgiresearch.com © 2011 MGI Research, LLC

Tech Valuations on a Relative Basis EPS EPS Sales growth growth growth Performance P/Free Dividend past 5 next 5 past 5 Performance (Year To Analyst Name Market Cap P/E PEG P/S P/Cash Cash Flow Yield years years years (Year) Date) Recom Stocks $ Basic Materials 5,745,395 11.33 1.00 1.00 15.79 49.26 2.61% 6.85% 11.34% 13.53% -‐6.60% 9.73% 2.25 597 $ Conglomerates 227,323 14.04 0.82 1.29 7.76 20.18 1.73% 5.38% 17.15% 5.56% -‐1.14% 11.06% 1.92 20 $ Consumer Goods 3,001,555 18.09 1.51 1.08 10.06 44.44 2.38% 10.64% 12.01% 7.64% 9.44% 8.46% 2.22 413 $ Financial 4,233,702 12.16 1.11 1.49 1.67 7.28 2.57% -‐3.46% 10.91% 5.18% -‐11.69% 13.86% 2.31 1,044 $ Healthcare 2,245,531 16.64 1.80 1.80 8.11 20.25 2.49% 12.58% 9.26% 13.36% 9.44% 5.68% 2.19 556 $ Industrial Goods 1,303,965 16.46 1.16 1.02 6.30 25.23 2.12% 4.13% 14.20% 4.56% -‐1.59% 11.19% 2.19 351 $ Services 3,263,588 18.17 1.25 0.82 12.17 22.92 1.51% 13.21% 14.52% 10.53% 9.79% 10.13% 2.21 906 $ Technology 5,278,141 15.98 1.27 1.73 6.68 17.98 2.14% 17.61% 12.58% 15.91% 1.08% 10.62% 2.22 907 $ UJliJes 753,724 15.68 2.89 1.23 17.23 83.99 4.03% 4.99% 5.42% 3.91% 8.94% 0.57% 2.51 125 3/9/12 © 2012 MGI Research, LLC 3

TECH M&A OUTLOOK•  BUYERS –  High Cash, Low-‐Med Debt, High ValuaJon. Low-‐Med Growth –  Looking for topline growth, regardless of profitability or valuaJon –  Filling Out a FuncJonal or Geographic “Hole” in Cloud CompuJng, Cloud Management/Security, SaaS, Storage, Big Data, Mobile App Tools –  E.G. IBM, Oracle, SAP, DELL, EMC, GOOG, Infor, CA –  HP likely to stay away from large deals, needs to absorb EDS and AUTN –  CRM to target companies within its ecosystem •  POTENTIAL SELLERS –  Small-‐Med SaaS firms, e.g. CNQR, KNXA, CTCT, CSOD, ULTI, SPSC, SQI, TRAK –  Prior generaJon sobware/Internet firms: ARBA, MANH, JDAS, BMC –  Cloud Tech: CTXS, RHT, FFIV, RVBD, AKAM –  Healthcare IT, Government/EducaJon Sobware and Services, Big Data, Mobile Apps Tools Cos. •  FALLEN HEROS & UNLIKELY DEALS –  NOK, RIMM, YHOO, SYMC, N 3/9/12 © 2011 MGI Research, LLC 5

Tech M&A Outlook - presented by Mgi research bloomberg l.p. march 2012 conference tech m&a.pptx

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Tech M&A Outlook - presented by Mgi research bloomberg l.p. march 2012 conference tech m&a.pptx Presentation Transcript