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Tech M&A Monthly - Q3 Quarterly Report October 2013

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Q3 2013 came to a remarkable close in the tech M&A arena--this report included our in depth quarterly report on the deals, trends and valuations, plus what it all means to technology CEOs, owners and …

Q3 2013 came to a remarkable close in the tech M&A arena--this report included our in depth quarterly report on the deals, trends and valuations, plus what it all means to technology CEOs, owners and investors considering their M&A options.

In addition to a detailed breakdown of the six software and related technology markets, and the 26 subsectors, the Corum team discussed the latest news from the world of tech & finance, with a look at unusual deals--with Blackberry acquired by an insurance company, we look at other buyers you might not think of; the JOBS Act--with Twitter taking advantage and some of the fundraising provisions coming into effect, how is the impact on tech M&A shaping up? And, finally, Corum President Nat Burgess provides his thoughts on why he thinks this that Tech M&A is currently a seller's market.

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  • 1. Global Tech M&A Monthly Q3 Quarterly Report 1
  • 2. Moderator Bruce Milne CEO Corum Group Ltd. A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world. He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the nation’s most active regional technology trade association. He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to Europe’s top technology firms A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success, including Power Planning. He is a frequent lecturer and author. 2
  • 3. Agenda  Welcome  Special Report: Unusual Buyers  Special Report: JOBS Act  Quarterly Tech M&A Report  Closing Perspective  Q&A 3
  • 4. Special Report – Unusual Buyers Bruce Milne CEO Corum Group Ltd. A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world. He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the nation’s most active regional technology trade association. He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to Europe’s top technology firms A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success, including Power Planning. He is a frequent lecturer and author. 4
  • 5. Big Data Analysis  Agriculture Giant Sold to Target: The Climate Corporation Buyer: Monsanto Value: $930 million Date: Q4 2013 - 5 Weather Big Data company Enables the real-time pricing and purchasing of customizable weather insurance using proprietary global weather simulation modeling and local weather monitoring systems.
  • 6. Cell Phone Company  Insurance Firm Sold to Target: Blackberry Buyer: Fairfax Financial Holdings Value: $4.7 Billion Date: Q3 2013 - 6 Wireless solutions for worldwide mobile communications market. Financial holdings company with operations in property and casualty insurance.
  • 7. Music Streaming  Grocery Store Sold to Target: we7 Ltd Buyer: Tesco Value: $16.8 Million Date: Q2 2012 • • 7 Provides an advertising-supported online streaming music service for consumers globally. Owns and operates grocery and retail stores globally. Also provides online grocery delivery service.
  • 8. Advertising Management  German Post Office Sold to Target: intelliAd Media GmbH Buyer: Deutsche Post Ag Value: $18.4 Million Date: Q3 2012 - 8 Provides PPC advertising campaign bid management SaaS for businesses. Provides mail and package delivery services for businesses and consumers in Germany.
  • 9. Videoconferencing Software  Printer & Sewing Machine Maker Sold to Target: Nefsis Buyer: The Brother Group Date: Q4 2011 - 9 Nefsis provides web-based remote collaboration and conferencing software. Manufactures printers, scanners, sewing machines, machine tools, and home appliances for businesses and consumers.
  • 10. Hosted Services Provider  Electronics Big Box Store Sold to Target: mindSHIFT Technologies Buyer: Best Buy Value: $167 million Date: Q3 2011 - 10 Provides managed and SaaS-based Microsoft, SharePoint, and CRM software to non-profits, educational institutions, and government agencies. Operates retail stores that sell consumer electronics, software, computers, games, and office equipment.
  • 11. Process Management Systems  Auto Parts Manufacturer Sold to Target: inubit Buyer: Bosch Date: Q3 2011 - 11 Supplier of integrated process management systems. Enables Bosch to offer networked application solutions in companies and on internet platforms with future business growth, such as smart mobility, smart grids, and telehealth.
  • 12. Human Resources Software  Native Tribe Sold to Warm Spring Ventures Target: Cort Directions Buyer: Warm Spring Ventures Date: Q1 2003 - 12 Provides software to medium and large sized organizations with complex payroll and HR tasks.
  • 13. Practice Management Software  Chemical & Testing Manufacturer Advanced Veterinary Systems Sold to Target: Advanced Veterinary Systems Buyer: IDEXX Laboratories Date: Q1 1997 - 13 AVS provides practice management software targeted to the veterinary industry. IDEXX engages in the development, manufacture, and distribution of products for the veterinary, food, and water testing markets.
  • 14. Special Report – The JOBS Act Elon Gasper Vice President, Director of Research Contact: in/elongasper elong@corumgroup.com 14 Alina Soltys Senior Analyst Contact: in/soltysa alina.soltys alina@corumgroup.com
  • 15. Recap of the Basics  April 2012 – passed and analyzed by Tech M&A Monthly  Helps smaller businesses  Raise private money  Stay private longer  Go public  Profound impact on Tech M&A  Main parts, simplified:  Title I: IPO On-Ramp  Title II: Solicitation and Safe Harbors  Title III: CROWDFUNDing  Title I “IPO On-Ramp” went into effect immediately  So did parts of other Titles 15
  • 16. 50 Jobs Act Title I IPOs By Industry 45 40 35 30 25 20 15 10 5 0 16 90% of smaller IPOs – under $1B – used Title I
  • 17. JOBS Act Title I Helps Propel Splunk to Acquisition Sold to Target: Bugsense Acquirer: Splunk Date: 9/16/2013 Transaction Value: Undisclosed - - 17 The addition of BugSense will enhance the ability of Splunk customers to analyze machine data directly from mobile devices and correlate it with other machine-generated data to gain operational intelligence. This is the inaugural acquisition for Splunk.
  • 18. 4 ProofPoint Acquisitions enabled by Title I Capital Date Target Value Description 10/1 $23 Million Provides open source software and processors that augment business messaging and email systems. Software enables policy controls, content management and security, email filtering and application integration. 8/9 $25 Million Provides exploit-based anti-malware, online advertising and website monitoring and source-code analysis SaaS for businesses’ Internet users. 7/25 $2.5 Million Provides email anti-spam and phishing and virus filtering software as a service (SaaS) for enterprises, small-to-medium sized businesses and government enterprises. 4/9 $4.5 Million Provides anti-spam and email anti-virus software as a service (SaaS) for businesses globally. 18
  • 19. What Title I (and V) Mean For M&A  Increased pace and bids for smaller entities (sub-$100M) – and higher valuations  EmGroCs providing M&A competition for traditional buyers  High IPO on-ramp activity indicative of opportunity for companies under $250 million. 19
  • 20. Title II -- Current Status  Delayed but effective September 23, 2013  Small businesses can generally solicit and advertise publicly for accredited investors  Easier to communicate and raise money  A fundamental change for angel financings, by groups and via media 20
  • 21. Predicted Title II Implications for M&A  Easier to communicate and raise money  A fundamental change for angel financings, by groups and via media  More capital = more demand for M&A  Higher activity and valuations  Faster action in hot markets – earlier take-outs and roll-ups, even by using quick, publicized, targeted financings 21
  • 22. Title III: CROWDFUNDing  “Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure”  A potential game-changer overhaul of securities investment laws  Raise up to $1 million annually  Tap thousands of investors through the Internet for small shares of stock each 22
  • 23. Crowdfunding in advance of Title III  Over 500 active crowdfunding platforms  9K crowdfunding-related domains registered  Equity-based has some legal status now in the UK, Italy, others  Creating a niche in the financial services sector – and M&A 23
  • 24. Crowdfunding Sector Consolidation Now Sold to Target: Kapipal [Italy] Acquirer: GrowVC [Hong Kong] Date: 7/9/2013 Transaction Value: Undisclosed - 24 Kapipal is an international crowdfunding platform, focusing on live events and personal causes. The addition of Kapipal will help to expand GrowVC’s offerings in the crowdfunding space.
  • 25. Google’s Investment In Lending Club Grows Crowdfunding Credibility Invested in Target: Lending Club Investor: Google Date: 5/2/2013 Investment Value: $125 million - 25 Google has led the investment round, bringing total Lending Club valuation to $1.55 billion.
  • 26. Predicted Title III Impact on M&A  Larger, more diverse capital base creates broader range of companies  Faster start-up formation drives quicker M&A  New generation of corporate spinout entrepreneurs more likely to realize exit through M&A  Increased pressure on sellers to grow or exit as more start-up competition arises 26
  • 27. Beyond the JOBS ACT: what’s next? • • • 27 More and faster-moving capital driving valuations and liquidity More varied and intricate Tech M&A Further securities deregulation to spark more investment?
  • 28. Corum Research Report Elon Gasper Vice President, Director of Research Contact: in/elongasper elong@corumgroup.com 28 Alina Soltys Senior Analyst Contact: in/soltysa alina.soltys alinas@corumgroup.com Amber Stoner Senior Analyst Contact: ambers@corumgroup.com Jason Steblay Senior Analyst Contact: jasons@corumgroup.com
  • 29. Public Markets 25% Percentage Change NASDAQ 20% 15% 10% 5% 0% 29 S&P TECH Dow Jones
  • 30. Corum Index Buyer Seller Price Applied Materials Tokyo Electron $9.3B Microsoft Nokia $5.0B Schneider Electric Invensys $4.9B Q3: 2012 # of Transactions # of Mega Deals Largest Deal Q3:2013 918 801 Cisco Sourcefire $2.7B 8 15 Baidu 91 Wireless Websoft $1.9B $3.3B $9.3B Davis + Henderson Harland Financial Solutions $1.2B Vista Equity Partners Active Network $1.0B Thoma Bravo Intuit $1.0B Private Equity Deals 46 53 # VC backed Exits 173 172 % Cross Border Transactions 32% 30% % of Startup Acquisitions* 14% 14% 14 14 Average Life of Target * 0 to 3 years 30 *Plus 7 more deals not shown
  • 31. Corum Index Q3: 2012 Target: Nokia (devices and services business) Acquirer: Microsoft Transaction Value: $5 billion Nokia $5.0B Cisco Q3:2013 Seller Microsoft Sold to Buyer Sourcefire $2.7B Baidu 91 Wireless Websoft $1.9B Harland Financial Solutions $2.5B Vista Equity Partners Active Network $1.0B Thoma Bravo Intuit $1.0B Davis + Henderson # of Transactions and manufactures mobile phones and provides imaging, game and media software for 918 801 Designs mobile network operators, businesses and consumers. # of Mega Deals Largest Deal Target: Trusteer Private Equity Deals Acquirer: IBM 8 $3.3BSold to 46 15 $9.3B 53 Transaction Value: $0.9 billion: 25.7x revenue # VC backed Exits financial anti-fraud software and SaaS including172 173 Provides anti-malware, endpoint integrity and mobile device security software to businesses globally. % Cross Border Transactions 32% 30% % of Startup Acquisitions* 14% Sold to 14% AverageTarget: Sourcefire Life of Target 14 14 Acquirer: Cisco Transaction Value: $2.7 billion: 10.7x revenue * 0 to 3 years 31 - Provides intrusion detection and prevention systems and closed- and open-source software and software as a service for businesses. Price
  • 32. Corum Index Buyer Seller Price Applied Materials Tokyo Electron $9.3B Microsoft Nokia $5.0B Schneider Electric Invensys $4.9B Q3: 2012 # of Transactions # of Mega Deals Largest Deal Q3:2013 918 801 Cisco Sourcefire $2.7B 8 15 Baidu 91 Wireless Websoft $1.9B $3.3B $9.3B Davis + Henderson Harland Financial Solutions $1.2B Vista Equity Partners Active Network $1.0B Thoma Bravo Intuit $1.0B Private Equity Deals 46 53 # VC backed Exits 173 172 % Cross Border Transactions 32% 30% % of Startup Acquisitions* 14% 14% 14 14 Average Life of Target * 0 to 3 years 32 *Plus 7 more deals not shown
  • 33. Cash Holdings: Non-Financial Companies $1.48 Trillion Total Top 5 Cash Holders • Apple – 10% of ALL cash • Cisco Technology: $515B • Google • Microsoft • Pfizer Apple: $147B Non-Technology: $935B Source: Moody’s as of July 2013; U.S. Only 33
  • 34. Europe Sellers 157 Buyers 133 Asia Sellers 42 Buyers 42 North America Sellers 531 Buyers 592 Mideast/Africa Sellers Buyers Latin America Sellers 6 12 Buyers 9 3 Source: 451 Research 34
  • 35. North American Deals Canada Sellers 30 Buyers 31 Northeast Sellers 111 Buyers 124 Midwest Sellers West Sellers 203 Buyers 60 Buyers 69 Spain United States 233 Southeast Finland 35 United States Sellers 78 Buyers United States 82 United States Source: 451
  • 36. European Deals Nordics Sellers Buyers United Kingdom 10 13 France Eastern Europe Western Europe Sellers Sellers Buyers 11 109 German y 36 12 Buyers 135 Spain Source: 451
  • 37. Latin American Deals Argentina United Kingdom Latin America Sellers 12 Buyers 3 Brazil 37 France Source: 451
  • 38. Asian Deals China China China Far East Sellers 14 Buyers 12 Sellers 16 China Buyers 15 Sellers 11 Buyers 14 India SE/Oceania Sellers India 38 USA 1 Buyers 1 Source: 451
  • 39. Europe Sellers 157 Buyers 133 Asia Sellers 42 Buyers 42 North America Sellers 531 Buyers 592 Israel United States Mideast/Africa Sellers Buyers Latin America Sellers 39 6 12 Buyers 9 3 Source: 451
  • 40. Aggregate Six Markets EV/EBITDA 12.00x EV/Sales 2.50x 11.50x 2.00x 11.00x 1.50x 10.50x 1.00x 10.00x 0.50x 9.50x 9.00x 0.00x Q3:12 Q1:13 Q2:13 Q3:13 EV/EBITDA 10.43x 9.91x 10.79x 10.64x 11.65x EV/S 40 Q4:12 1.80x 1.78x 1.92x 1.98x 2.15x
  • 41. Horizontal Application Software Market Public Valuation Multiples EV/EBITDA EV/Sales 18.00 x 4.00 x 16.00 x 3.50 x 14.00 x 3.00 x 12.00 x 2.50 x 10.00 x 2.00 x 8.00 x 1.50 x 6.00 x 1.00 x 4.00 x 2.00 x 0.50 x 0.00 x 0.00 x Sep-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 12.75 x 13.25 x 13.42 x 15.00 x 12.44 x 12.97 x 12.13 x 12.59 x 12.09 x 15.03 x 12.83 x 16.12 x EV/S 41 Oct-12 EV/EBITDA 15.08 x 2.76 x 2.83 x 2.61 x 2.67 x 2.57 x 2.71 x 2.93 x 2.88 x 3.08 x 2.99 x 2.93 x 3.48 x 2.75 x
  • 42. Horizontal Application Software Valuations Subsector Sales Earnings Business Intelligence 3.11x 21.54x Human Resources 3.82x 75.81x SCM 7.10x 18.78x Communications 1.45x 14.42x ERP 2.79x 10.30x CRM 2.59x 20.40x Content Mgmt. 3.30x 11.02x Horizontal Other 4.28x 20.47x 42 Examples
  • 43. Acquisitions Date Value Description 9/10 -- Provides customer lifecycle predictive analytics SaaS by mining enterprise data to provide product recommendations, optimize online and social media marketing, enable customer engagement and prevent fraud. 6/5 $1.1 Billion 5/16 -- Provides employee onboarding management SaaS for businesses. 3/7 -- Provides health, property and homeowners’ insurance policy configuration, administration and underwriting software for insurance agencies in North America. 2/22 -- Provides product inventory management and planning software and SaaS for businesses. 1/31 -- Provides sports and entertainment event ticketing POS, CRM and accounting software and SaaS for promoters and venues in Germany. 43 Target Provides e-commerce management software and SaaS for businesses globally that provides features for product data management, merchandising, SEO, customer support management, marketing materials publishing and order management.
  • 44. Horizontal Application Software Market Deal Spotlight EV/EBITDA EV/Sales 18.00 x 4.00 x 16.00 x 3.50 x Sold to 14.00 x 3.00 x 12.00 x 2.50 x 10.00 x 8.00 x 6.00 x Sector: CRM Target: KXEN, Inc. Acquirer: SAP AG [Germany] Transaction Value: Undisclosed 2.00 x 1.50 x 1.00 x 4.00 x 2.00 x 0.00 x EV/EBITDA EV/S 44 Addition of KXEN adds powerful and easy-to-use predictive capabilities for the extensive customer base of cloud and on-premise solutions from SAP 0.50 x 0.00 x - The predictive technology can be used to enhance the value of core SAP Sep-12applications for managing operations,Mar-13 Apr-13 May-13 Jun-13 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Jul-13 Aug-13 customer relationships, supply 15.08 xchains, risk and 13.42 x 15.00 x 12.44 x 12.97 x 12.13 x 12.59 x 12.09 x 15.03 x 12.83 x 12.75 x 13.25 x fraud. 16.12 x 2.75 x 3.48 x 2.76 x 2.83 x 2.61 x 2.67 x 2.57 x 2.71 x 2.93 x 2.88 x 3.08 x 2.99 x 2.93 x Sep-13
  • 45. Horizontal Application Software Market Deal Spotlight EV/EBITDA EV/Sales Sold to 18.00 x 4.00 x 16.00 x 14.00 x 12.00 x 3.50 x Sector: Mobile Advertising Target: Lumata Acquirer: Vibes Media 3.00 x 2.50 x 10.00 x - 8.00 x US business assets of Lumata, which provides mobile marketing campaign creation and management software and SaaS for businesses in the US. 2.00 x 1.50 x 6.00 x 1.00 x 4.00 x Sold to 2.00 x 0.50 x 0.00 x 0.00 x Sector: Mobile Advertising Target: Oct-12 Nov-12 Dec-12 Sep-12 WirelessDeveloper Inc. Acquirer: [x+1], 13.25 EV/EBITDA 15.08 x 12.75 x Inc. x 13.42 x Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 15.00 x 12.44 x 12.97 x 12.13 x 12.59 x 12.09 x 15.03 x 12.83 x 16.12 x EV/S 2.67 x 2.57 x 2.71 x 2.93 x 2.88 x 3.08 x 2.99 x 2.93 x 3.48 x 2.75 x - 45 2.76 x 2.83 x 2.61 x Provides mobile advertising software, including real-time bidding, campaign measurement and social media integration to businesses in a range of industries.
  • 46. Horizontal Application Software Market Deal Spotlight EV/EBITDA EV/Sales 18.00 x 4.00 x 16.00 x 3.50 x Sold to 14.00 x 3.00 x 12.00 x 2.50 x 10.00 x 8.00 x 6.00 x Sector: Mobile Advertising Target: AD-X Ltd. [UK] Acquirer: Criteo SA [France] Transaction Value: $7.2 million 2.00 x - 0.50 x 1.50 x 1.00 x 4.00 x 2.00 x 0.00 x Provides performance-based tracking SaaS for use by mobile advertisers that enables the monitoring and reporting of mobile application downloads, clicks and usage of mobile applications used in online marketing Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 campaigns. EV/EBITDA 15.08 x EV/S 46 2.75 x - 12.75 x 13.25 x 13.42 x 15.00 x 12.44 x 12.97 x 12.13 x 12.59 x 12.09 x 15.03 x 2.76 2.83 x 2.61 x 2.67 x 2.57 x 2.71 x 2.93 x 2.88 x 3.08 x 2.99 x Helpsxposition Criteo as a one-stop display performance partner for both desktop and mobile devices. 0.00 x Sep-13 12.83 x 16.12 x 2.93 x 3.48 x
  • 47. Internet Market Public Valuation Multiples EV/EBITDA EV/Sales 16.00 x 2.50 x 14.00 x 2.00 x 12.00 x 10.00 x 1.50 x 8.00 x 1.00 x 6.00 x 4.00 x 0.50 x 2.00 x 0.00 x 0.00 x Sep-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 11.67 x 10.00 x 10.49 x 11.93 x 12.61 x 12.26 x 12.30 x 12.79 x 11.54 x 13.06 x 13.74 x 12.24 x 13.16 x EV/S 47 Oct-12 2.02 x 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x 1.73 x 1.84 x 1.95 x 2.02 x 1.84 x 2.04 x
  • 48. Internet Market Valuations Subsector Sales Earnings Internet Infrastructure 1.86x 11.76x Internet Pure Play 2.12x 14.72x 48 Examples
  • 49. Internet Market Deal Spotlight EV/EBITDA EV/Sales 16.00 x 2.50 x 14.00 x Sold to 2.00 x 12.00 x 10.00 x 8.00 x 6.00 x 4.00 x 1.50 x Sector: Internet Pure Play Target: Data Tote [UK] Acquirer: Sportech Transaction Value: $5 million 1.00 x 0.50 x 2.00 x - 0.00 x Sep-12 - EV/EBITDA EV/S 49 11.67 x 2.02 x Provides gaming and betting software, terminals and tablet computers with a focus on the European greyhound and horse racing markets. Oct-12 Nov-12 Dec-12 Jan-13 Reinforces Sportech's positionFeb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 as one of the largest operators and providers 10.00 x 10.49 x 11.93 x 12.61 x 12.26 x 12.30 x 12.79 x 11.54 x 13.06 x 13.74 x 12.24 x of betting technologies and services in the world. 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x 1.73 x 1.84 x 1.95 x 2.02 x 1.84 x 0.00 x Sep-13 13.16 x 2.04 x
  • 50. Internet Market Deal Spotlight EV/EBITDA EV/Sales 16.00 x 2.50 x 14.00 x Sold to 2.00 x 12.00 x 10.00 x 8.00 x 6.00 x 4.00 x 1.50 x Sector: Internet Pure Play Target: Gaming Investments Pty [Australia] Acquirer: Ladbrokes plc [UK] Transaction Value: $20.2 million 1.00 x 0.50 x 2.00 x - 0.00 x Sep-12 EV/EBITDA EV/S 50 11.67 x 2.02 x Operates as an online sports betting website for consumers in Australia through Bookmaker.com.au. Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Opportunity to establish presence in Australia and continueJun-13 Jul-13 to extend 10.00 x 10.49 x 11.93 geographic reach. x 12.61 x 12.26 x 12.30 x 12.79 x 11.54 x 13.06 x 13.74 x 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x 1.73 x 1.84 x 1.95 x 2.02 x 0.00 x Aug-13 Sep-13 12.24 x 13.16 x 1.84 x 2.04 x
  • 51. Internet Market Deal Spotlights EV/EBITDA EV/Sales Sold to 16.00 x 2.50 x 14.00 x 12.00 x 2.00 x Target: Braintree Payment Solutions Acquirer: PayPal (eBay) Transaction Value: $800 million 10.00 x 8.00 x 1.50 x - Provides online and mobile payment APIs for software developers and businesses to integrate payments functionality into their websites. 1.00 x 6.00 x 4.00 x 0.50 x Sold to 2.00 x 0.00 x 0.00 x Target: Bureau of Trade Sep-12 Oct-12 Acquirer: eBay Nov-12 Dec-12 Transaction Value: Undisclosed EV/EBITDA 11.67 x 10.00 x 10.49 x 11.93 x Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 12.61 x 12.26 x 12.30 x 12.79 x 11.54 x 13.06 x 13.74 x 12.24 x 13.16 x EV/S 2.22 x 1.99 x 1.88 x 1.73 x 1.84 x 1.95 x 2.02 x 1.84 x 2.04 x 2.02 x - 51 2.06 x 1.96 x 1.89 x Provides an online product aggregation and daily deal recommendation service for men that searches online marketplaces and curates exclusive merchandise selections for upscale male shoppers.
  • 52. Internet Market Deal Spotlight EV/EBITDA EV/Sales 16.00 x 2.50 x 14.00 x Sold to 2.00 x 12.00 x 10.00 x 8.00 x 6.00 x 4.00 x 1.50 x Sector: Internet Pure Play Target: SideTour, Inc. Acquirer: Groupon Inc. Transaction Value: Undisclosed 1.00 x 0.50 x 2.00 x - 0.00 x Sep-12 EV/EBITDA EV/S 52 11.67 x 2.02 x SideTour handpicks a growing selection of unique, hosted events that connect customers with qualified experts who help them discover more about their cities and the things they’re passionate about. Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 0.00 x Aug-13 Sep-13 10.00 x Furthers 10.49 x 11.93 x 12.61as the go-to place12.79 consumers to find13.74 x about x Groupon’s vision x 12.26 x 12.30 x for x 11.54 x 13.06 x just 12.24 2.06 x anything,1.96 x 1.89 x anytime. 1.99 x 1.88 x 1.73 x 1.84 x 1.95 x 2.02 x 1.84 x anywhere, 2.22 x 13.16 x 2.04 x
  • 53. Internet Market Deal Spotlight EV/EBITDA EV/Sales 16.00 x 2.50 x 14.00 x Sold to 2.00 x 12.00 x 10.00 x 8.00 x 6.00 x 4.00 x 1.50 x Sector: Internet Pure Play Target: Cloops, Inc. Acquirer: Discount Coupons Corp Transaction Value: Undisclosed 1.00 x 0.50 x 2.00 x - 0.00 x Sep-12 EV/EBITDA EV/S 53 11.67 x 2.02 x Operates a coupon aggregation website for consumers primarily in the Los Angeles and South Florida markets. Oct-12 Nov-12 Dec-12 Purchase is in line with Jan-13 Feb-13 Mar-13 Corp's strategy of acquiring Aug-13 Discount Coupons Apr-13 May-13 Jun-13 Jul-13 10.00 x 10.49 x 12.24 companies that 11.93 x 12.61 x consistent, strong performance and offer xuniquex demonstrate 12.26 x 12.30 x 12.79 x 11.54 x 13.06 x 13.74 2.06 x 1.96 to 1.89 x approaches x the Daily2.22 x industry.1.88 x 1.73 x 1.84 x 1.95 x 2.02 x 1.84 x Deal 1.99 x 0.00 x Sep-13 13.16 x 2.04 x
  • 54. Vertical Application Software Market Public Valuation Multiples EV/EBITDA EV/Sales 14.00 x 3.00 x 12.00 x 2.50 x 10.00 x 2.00 x 8.00 x 1.50 x 6.00 x 1.00 x 4.00 x 0.50 x 2.00 x 0.00 x 0.00 x Sep-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 10.06 x 9.61 x 9.92 x 10.02 x 10.23 x 12.08 x 11.67 x 11.48 x 11.80 x 11.81 x 12.40 x 11.74 x 12.81 x EV/S 54 Oct-12 2.24 x 2.17 x 2.11 x 2.32 x 2.35 x 2.49 x 2.39 x 2.40 x 2.42 x 2.60 x 2.52 x 2.65 x 2.28 x
  • 55. Vertical Application Software Valuations Subsector Sales Earnings A/E/C 2.68x 13.61x Government 0.93x 7.29x Healthcare 4.28x 30.91x Financial Services 3.61x 14.80x Energy & Environment 2.81x 10.74x Vertical Other 1.84x 12.67x 55 Examples
  • 56. Vertical Application Software Market Deal Spotlight EV/EBITDA EV/Sales 14.00 x 3.00 x 12.00 x Sold to 2.50 x 10.00 x 2.00 x 8.00 x 6.00 x 4.00 x 2.00 x 0.00 x EV/EBITDA EV/S 56 Sector: Financial Services Target: Portfolio Director Acquirer: Scivantage Transaction Value: Undisclosed - 1.50 x 1.00 x 0.50 x Provides portfolio management SaaS for financial advisers, single-seat investment managers and online trading brokerage houses. Adds to expertise of providing brokerages, banks and mutual funds with Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 automated solutions to grow their business, and enables the company to 10.06 x 9.61 x 9.92 x 10.02 x 10.23 x 12.08 x 11.67 x 11.48 x 11.80 x 11.81 x 12.40 x 11.74 x enhance its performance reporting capabilities for both investment advisors 2.28 x 2.24 x 2.17 x 2.11 x 2.32 x 2.35 x 2.49 x 2.39 x 2.40 x 2.42 x 2.60 x 2.52 x and individual retail investors. 0.00 x Sep-13 12.81 x 2.65 x
  • 57. Vertical Application Software Market Deal Spotlights EV/EBITDA EV/Sales Sold to 14.00 x 3.00 x 12.00 x 10.00 x 2.50 x Sector: Financial Services Target: Data Agent, LLC Acquirer: Confluence Technologies 2.00 x 8.00 x 6.00 x Provides regulatory reporting and data integration, management and analytics software & SaaS for investment managers. 1.50 x 1.00 x 4.00 x 0.50 x Sold to 2.00 x 0.00 x 0.00 x Sep-12 Oct-12 Nov-12 Sector: Financial Services Dec-12 EV/EBITDA Target: IntelliFlo Ltd. [UK] 10.02 x 10.06 x 9.61 x 9.92 x Acquirer: HgCapital [UK] EV/S 2.28 x - 57 2.24 x 2.17 x 2.11 x Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 10.23 x 12.08 x 11.67 x 11.48 x 11.80 x 11.81 x 12.40 x 11.74 x 12.81 x 2.32 x 2.35 x 2.49 x 2.39 x 2.40 x 2.42 x 2.60 x 2.52 x 2.65 x Provides both front and back-end workflow and practice management SaaS for financial advisers and brokerage houses in the UK.
  • 58. Vertical Application Software Market Deal Spotlights Sold to EV/EBITDA EV/Sales 14.00 x 12.00 x 3.00 x Target: SR Tech Group (patent portfolio) Acquirer: Google Summary: Speech recognition software & development 2.50 x 10.00 x 2.00 x 8.00 x Sold to 1.50 x 6.00 x 4.00 x 2.00 x 1.00 x Target: Indisys [Spain] Acquirer: Intel Summary: Processor designer & manufacturer 0.50 x 0.00 x 0.00 x Sold to Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 10.06 x 9.61 x 9.92 x 10.02 x 10.23 x 12.08 x 11.67 x 11.48 x 11.80 x 11.81 x 12.40 x 11.74 x 12.81 x EV/S 2.24 x 2.17 x 2.11 x 2.32 x 2.35 x 2.49 x 2.39 x 2.40 x 2.42 x 2.60 x 2.52 x 2.65 x 2.28 x Target: Mobile Technologies, LLC Acquirer: Facebook Summary: Spoken translation mobile application 58
  • 59. Consumer Application Software Market Public Valuation Multiples EV/EBITDA EV/Sales 9.00 x 2.50 x 8.00 x 2.00 x 7.00 x 6.00 x 1.50 x 5.00 x 4.00 x 1.00 x 3.00 x 2.00 x 0.50 x 1.00 x 0.00 x 0.00 x Sep-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 7.67 x 7.10 x 6.16 x 6.07 x 6.03 x 6.46 x 7.26 x 7.18 x 7.40 x 7.32 x 8.32 x 7.48 x 7.50 x EV/S 59 Oct-12 1.25 x 1.26 x 1.31 x 1.29 x 1.68 x 1.45 x 1.66 x 1.69 x 1.73 x 1.61 x 1.92 x 1.49 x 1.84 x
  • 60. Consumer Application Software Valuations Subsector Sales Earnings Digital Content 0.89x 7.29x Video Games 1.91x 7.52x 60 Examples
  • 61. Consumer Application Software Market Deal Spotlight EV/EBITDA EV/Sales 9.00 x 2.50 x 8.00 x Sold to 2.00 x 7.00 x 6.00 x 5.00 x 4.00 x 3.00 x 2.00 x - 1.00 x 0.00 x Sep-12 EV/EBITDA 7.67 x EV/S 61 1.50 x Sector: Digital Content Target: Bump Technologies Acquirer: Google Transaction Value: Undisclosed 1.25 x 1.00 x 0.50 x Provides a file sharing application for Android and iPhone smartphone users, enabling the immediate sharing of files, videos and photos through physically tapping or "bumping" devices together. 0.00 x Allow them to improve AndroidFeb-13 create richer alternatives to near-field Aug-13 and Mar-13 Apr-13 May-13 Jun-13 Jul-13 Oct-12 Nov-12 Dec-12 Jan-13 communication. 6.07 x 6.03 x 6.46 x 7.26 x 7.18 x 7.40 x 7.32 x 8.32 x 7.48 x 7.10 x 6.16 x 1.26 x 1.31 x 1.29 x 1.68 x 1.45 x 1.66 x 1.69 x 1.73 x 1.61 x 1.92 x 1.49 x Sep-13 7.50 x 1.84 x
  • 62. Consumer Application Software Market Deal Spotlight EV/EBITDA EV/Sales 9.00 x 2.50 x 8.00 x Sold to 2.00 x 7.00 x 6.00 x 5.00 x 4.00 x 3.00 x 2.00 x - 1.00 x 0.00 x Sep-12 EV/EBITDA 7.67 x EV/S 62 1.50 x Sector: Digital Content Target: Vizibility LLC Acquirer: ALL-STATE International Transaction Value: Undisclosed 1.25 x 1.00 x 0.50 x Provides a mobile application and SaaS that enables consumers to create mobile business cards and manage contacts via an online contact management portal. Product consolidates brand, companyMar-13 employee information and canAug-13 and Apr-13 May-13 Jun-13 Jul-13 be Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 shared online via6.07 x 6.03 xQR6.46 x 7.26 x 7.18 x business 7.32 x or by 7.48 x email, by codes on physical 7.40 x cards 8.32 x 7.10 x 6.16 x smartphone without xthe 1.68 x of 1.45 dedicated application. 1.61 x 1.92 x 1.49 x use an x 1.66 x 1.69 x 1.73 x 1.26 x 1.31 x 1.29 0.00 x Sep-13 7.50 x 1.84 x
  • 63. Consumer Application Software Market Deal Spotlight EV/EBITDA EV/Sales 9.00 x 2.50 x 8.00 x Sold to 2.00 x 7.00 x 6.00 x 1.50 x 5.00 x 4.00 x 3.00 x Sector: Digital Content Target: Boxee Inc. Acquirer: Samsung Electronics Transaction Value: Reported at $30 million 1.00 x 2.00 x 1.00 x 0.50 x - Provides and distributes a video streaming and DVR system and SaaS that enables consumers to watch and record video content from the Internet. 0.00 x 0.00 x - Sep-12 EV/EBITDA EV/S 63 7.67 x 1.25 x Boxee will provide the development of internet enabled devices and make it Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 possible for their6.07 x to share what they are watching xon social networks. x users 6.03 x 6.46 x 7.26 x 7.18 x 7.40 7.10 x 6.16 x 7.32 x 8.32 x 7.48 1.26 x 1.31 x 1.29 x 1.68 x 1.45 x 1.66 x 1.69 x 1.73 x 1.61 x 1.92 x 1.49 x Sep-13 7.50 x 1.84 x
  • 64. Infrastructure Software Market Public Valuation Multiples EV/EBITDA EV/Sales 14.00 x 3.00 x 12.00 x 2.50 x 10.00 x 2.00 x 8.00 x 1.50 x 6.00 x 1.00 x 4.00 x 0.50 x 2.00 x 0.00 x 0.00 x Sep-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 10.61 x 9.87 x 9.72 x 10.01 x 10.84 x 9.69 x 10.31 x 10.95 x 11.08 x 10.78 x 11.73 x 10.85 x 11.64 x EV/S 64 Oct-12 1.99 x 1.99 x 2.27 x 2.38 x 2.15 x 2.21 x 2.35 x 2.41 x 2.26 x 2.44 x 2.34 x 2.29 x 2.07 x
  • 65. Infrastructure Software Valuations Subsector Sales Earnings Infrastructure Communications 1.80x 17.76x Network Management 2.55x 11.03x Storage 1.38x 10.19x Development Tools 2.47x 16.22x Security 4.89x 12.05x Virtualization 4.08x 22.42x Legacy/SOA 3.82x 20.45x Systems Mgmt. 2.45x 8.03x 65 Examples
  • 66. Infrastructure Software Market Deal Spotlight EV/EBITDA EV/Sales 14.00 x 3.00 x 12.00 x Sold to 2.50 x 10.00 x 2.00 x 8.00 x 6.00 x 4.00 x 2.00 x 0.00 x Sector: Systems Management Target: Daeja Image Systems [UK] Acquirer: IBM Transaction Value: Undisclosed 1.50 x - Added a technology that allows corporate users to access, annotate and share documents through a Web-based viewer. 0.50 x - The interactive features of Daeja software complement IBM’s ability to mask Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 and annotate documents and images to anonymize or protect sensitive data. 0.00 x Sep-12 1.00 x EV/EBITDA 10.61 x 9.72 x 10.01 x 10.84 x 9.69 x 10.31 x 10.95 x 11.08 x 10.78 x 11.73 x 10.85 x 11.64 x EV/S 66 9.87 x 1.99 x 1.99 x 2.27 x 2.38 x 2.15 x 2.21 x 2.35 x 2.41 x 2.26 x 2.44 x 2.34 x 2.29 x 2.07 x
  • 67. Infrastructure Software Market Deal Spotlights EV/EBITDA EV/Sales Sold to 14.00 x 3.00 x 12.00 x 10.00 x 8.00 x 2.50 x Sector: Systems Management Target: KineticGlue Online Communities [India] Acquirer: BMC Software - 2.00 x Provides team collaboration SaaS using social networks for small to large enterprises in India. Software includes document management, project management and market intelligence features. 1.50 x 6.00 x 1.00 x 4.00 x Sold to 0.50 x 2.00 x 0.00 x Sector: Systems Management Target: Partnerpedia [Canada] Acquirer: BMC Software 0.00 x Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 10.61 x 9.87 x 9.72 x 10.01 x 10.84 x 9.69 x 10.31 x 10.95 x 11.08 x 10.78 x 11.73 x 10.85 x 11.64 x EV/S 67 - Provides mobile application storefront development software to enable enterprises to store 2.07 x 1.99 x 1.99 x 2.27 x 2.38 x 2.15 x 2.21 x 2.35 x 2.41 x 2.26 x 2.44 x 2.34 x distribute mobile applications for download. 2.29 x
  • 68. Infrastructure Software Market Deal Spotlight EV/EBITDA EV/Sales 14.00 x 3.00 x 12.00 x Sold to 2.50 x 10.00 x 2.00 x 8.00 x 6.00 x Sector: Visualization Target: Byte Squared Limited [UK] Acquirer: Citrix Systems Transaction Value: Undisclosed 1.50 x 1.00 x 4.00 x 2.00 x Provides mobile software that enables users to edit office files, primarily Microsoft Office documents, including Word, PowerPoint and Excel files, on iOS mobile devices. 0.50 x 0.00 x 0.00 x - Sep-12 Will integrate it into its ShareFile enterprise platform, acquired in 2011. Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 10.61 x 9.72 x 10.01 x 10.84 x 9.69 x 10.31 x 10.95 x 11.08 x 10.78 x 11.73 x 10.85 x 11.64 x EV/S 68 9.87 x 1.99 x 1.99 x 2.27 x 2.38 x 2.15 x 2.21 x 2.35 x 2.41 x 2.26 x 2.44 x 2.34 x 2.29 x 2.07 x
  • 69. Infrastructure Software Market Deal Spotlights EV/EBITDA EV/Sales 14.00 x 3.00 x Sold to 12.00 x 10.00 x 8.00 x 2.50 x Target: Whiptail Technologies Acquirer: Cisco Transaction Value: $415 million: 20.8x revenue - 2.00 x Provides solid-state (SSD) all-flash array (AFA) storage systems for application and database storage used in servers by enterprises globally. 1.50 x 6.00 x 1.00 x 4.00 x Sold to 0.50 x 2.00 x 0.00 x Target: Sourcefire Acquirer: Cisco Transaction Value: $2.7 billion: Jan-13 revenue 10.7x Feb-13 Sep-12 Oct-12 Nov-12 Dec-12 EV/EBITDA 10.61 x EV/S 69 9.87 x 9.72 x 10.01 x 10.84 x 9.69 x 0.00 x Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 10.31 x 10.95 x 11.08 x 10.78 x 11.73 x 10.85 x 11.64 x 2.07 x Provides intrusion detection and prevention systems and closed- and open-source software and 1.99 x 1.99 x 2.27 x 2.38 x 2.15 x 2.21 x 2.35 x 2.41 x 2.26 x 2.44 x 2.34 x software as a service for businesses. 2.29 x
  • 70. IT Services Market Public Valuation Multiples EV/Sales EV/EBITDA 12.00 x 0.70 x 0.60 x 10.00 x 0.50 x 8.00 x 0.40 x 6.00 x 0.30 x 4.00 x 0.20 x 2.00 x 0.10 x 0.00 x 0.00 x Sep-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 7.46 x 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x 11.04 x 10.72 x 8.75 x 9.59 x 9.42 x 8.68 x EV/S 70 Oct-12 0.45 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x 0.54 x 0.57 x 0.56 x 0.58 x 0.57 x 0.58 x
  • 71. Asian IT Services Market Public Valuation Multiples EV/Sales EV/EBITDA 14.00 x 3.00 x 12.00 x 2.50 x 10.00 x 2.00 x 8.00 x 1.50 x 6.00 x 1.00 x 4.00 x 0.50 x 2.00 x 0.00 x 0.00 x Apr-13 Jun-13 Jul-13 Aug-13 Sep-13 EV/EBITDA 9.61 x 10.65 x 9.39 x 11.58 x 11.46 x 11.25 x EV/S 71 May-13 2.28 x 2.19 x 1.85 x 2.49 x 2.39 x 2.72 x
  • 72. IT Services Market Deal Spotlight EV/Sales EV/EBITDA 12.00 x 0.70 x CRM BPO Business 10.00 x Sold to 0.60 x 0.50 x 8.00 x 0.40 x 6.00 x 4.00 x 2.00 x 0.00 x Target: IBM (CRM BPO business) Acquirer: SYNNEX Corp. Transaction Value: $505 million 0.30 x 0.20 x - IBM's worldwide customer care services business, which provides outsourced BPO customer help services for businesses globally. - This acquisition will make Concentrix a global Top 10 player in a growing Oct-12 market,Nov-12 add up to 45,000 staff.Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 and Dec-12 Jan-13 Feb-13 Sep-12 0.10 x 0.00 x Sep-13 EV/EBITDA 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x 11.04 x 10.72 x 8.75 x 9.59 x 9.42 x 8.68 x EV/S 72 7.46 x 0.45 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x 0.54 x 0.57 x 0.56 x 0.58 x 0.57 x 0.58 x
  • 73. IT Services Market Deal Spotlight EV/Sales EV/EBITDA 12.00 x IT Staffing Division 10.00 x 0.70 x Sold to 0.60 x 0.50 x 8.00 x 0.40 x 6.00 x 4.00 x Target: RCG Global Services (IT Staffing Division) Acquirer: Stefanini IT Solutions [Brazil] Transaction Value: Undisclosed 0.30 x 0.20 x 2.00 x - The IT staffing division of RCG Global Services, which provides offshore and US-based IT staffing services to businesses globally. 0.00 x - Will strengthen Stefanini’s recruiting capability by adding a second offshore recruiting center in the Asia-Pacific Mar-13 Apr-13 will alsoJun-13 aJul-13 Aug-13 region. They May-13 gain direct Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 presence to additional U.S. geographies, especially in the northeast and x 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x 11.04 x 10.72 x 8.75 x 9.59 x 9.42 southern states x 0.51 x 0.50 x 0.54 x 0.54 x 0.57 x 0.56 x 0.58 x 0.57 x 0.47 x 0.48 x 0.50 Sep-12 EV/EBITDA EV/S 73 7.46 x 0.45 x 0.10 x 0.00 x Sep-13 8.68 x 0.58 x
  • 74. IT Services Market Deal Spotlight EV/Sales EV/EBITDA 12.00 x 0.70 x Sold to 10.00 x 0.60 x 0.50 x 8.00 x 6.00 x 0.40 x Target: SoftCom Inc. [CAN] Acquirer: Ingram Micro Transaction Value: Undisclosed 0.30 x 4.00 x 0.20 x 2.00 x 0.00 x - Sep-12 EV/EBITDA EV/S 74 7.46 x 0.45 x A cloud marketplace and global service provider offering domain name management, web hosting and cloud infrastructure services, among other SMB-focused solutions. Gives Ingram its own hosted infrastructure product, giving it the improved Oct-12 margin Nov-12 a Dec-12 product, as well as a Apr-13 May-13 Jun-13 Jul-13 Aug-13 over resold Jan-13 Feb-13 Mar-13 product it can actively steer in the 6.73 x 7.32 8.02 x 8.11 x 9.73 x 10.22 direction ofxits user and partner needs. x 11.04 x 10.72 x 8.75 x 9.59 x 9.42 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x 0.54 x 0.57 x 0.56 x 0.58 x 0.57 x 0.10 x 0.00 x Sep-13 8.68 x 0.58 x
  • 75. IT Services Market Deal Spotlight EV/Sales EV/EBITDA 12.00 x 0.70 x Sold to 10.00 x 0.60 x 0.50 x 8.00 x 0.40 x 6.00 x 4.00 x Target: Computerlinks AG [Germany] Acquirer: Arrow Electronics Transaction Value: $307.7 million 0.30 x 0.20 x 2.00 x - 0.00 x Sep-12 - Distributes business management, security and consumer software and mobile devices and computer systems to businesses in Europe, as well as provides related IT training, installation and support services. Oct-12 Nov-12 Dec-12 Jan-13 Part of long-term strategy of Feb-13 Mar-13 Apr-13 distribution channel. consolidation in the May-13 Jun-13 Jul-13 0.10 x 0.00 x Aug-13 Sep-13 EV/EBITDA 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x 11.04 x 10.72 x 8.75 x 9.59 x 9.42 x 8.68 x EV/S 75 7.46 x 0.45 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x 0.54 x 0.57 x 0.56 x 0.58 x 0.57 x 0.58 x
  • 76. Corum Research Report Elon Gasper Vice President, Director of Research Contact: in/elongasper elong@corumgroup.com 76 Alina Soltys Senior Analyst Contact: in/soltysa alina.soltys alinas@corumgroup.com Amber Stoner Senior Analyst Contact: ambers@corumgroup.com Jason Steblay Senior Analyst Contact: jasons@corumgroup.com
  • 77. Closing Perspective Nat Burgess President Corum Group Ltd. Nat joined Corum in 1996 and brings a diverse background in technology M&A and law. While with the Enforcement Division of the U.S. Securities and Exchange Commission, Nat helped identify and build cases against securities fraud schemes. With the Strategic Development Division of Morgan Stanley's M&A group, Nat worked on cross-border acquisitions of U.S. and European companies by Japanese firms, and on financings by large Japanese public companies. Nat moved to Morgan Stanley's Tokyo office, where he reported directly to the President of Morgan Stanley, Japan Ltd. and focused exclusively on cross-border M&A. After Morgan Stanley, Nat co-founded Postcard Software, a creator of advertiser-driven bilingual (English and Japanese) Internet content. At Activision, Nat led the company's on-line business development. Nat earned an undergraduate degree in Japanese literature from Yale College and a law degree from UCLA. While in law school, Nat wrote articles for the International Forum at Yale, Tokyo Journal. 77
  • 78. Upcoming Conference Schedule Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position, research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A event ever – participants have done over $1 trillion in transaction value. Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends, valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.” Oct. 15: Nashville – MB Nov. 14: Reston – SUSO Oct. 15: Sacramento – MB Nov. 14: Zurich – MB Oct. 24: Amsterdam – SUSO Nov. 18: Rio de Janeiro – MB Oct. 24: Salt Lake City – SUSO Nov. 18: San Antonio – MB Oct. 30: Calgary – MB Nov. 19: Austin – SUSO Nov. 11: Charlotte – MB Nov. 19: Sao Paulo – MB Nov. 12: Raleigh – SUSO Nov. 20: Boston – SUSO Nov. 13: Richmond – MB Nov. 21: Buenos Aires – MB Nov. 13: Vienna – MB Nov. 21: Dallas – SUSO www.CorumGroup.com/Events.aspx 78
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