Tech M&A Monthly: Quarterly Report - April 2013
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

Tech M&A Monthly: Quarterly Report - April 2013

on

  • 379 views

The Tech M&A market in the first quarter of 2013 has been hotter than any time since 2000--bolstered by booming public markets, record cash and continuing disruptive technological change. How is your ...

The Tech M&A market in the first quarter of 2013 has been hotter than any time since 2000--bolstered by booming public markets, record cash and continuing disruptive technological change. How is your market faring? During this quarterly report, get the details on the key deals, trends and valuations in the Horizontal, Vertical, Consumer, Internet, Infrastructure and IT Services markets--plus reports on all 26 subsectors.

Statistics

Views

Total Views
379
Views on SlideShare
379
Embed Views
0

Actions

Likes
0
Downloads
4
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Tech M&A Monthly: Quarterly Report - April 2013 Presentation Transcript

  • 1. 1 Global Tech M&A Monthly Q1: 2013 Report
  • 2. 2 Agenda  Welcome  Field Report: Cisco’s latest acquisition  Quarterly Research Report  Special Report: China  Korea: Global M&A Center  Q&A
  • 3. 3 Jon Scott Senior Vice President Corum Group Ltd. Jon joined Corum in 2010 out of their Seattle headquarters and is now based in Amsterdam. He has close to 30 years experience serving high technology companies with the last 20 mainly in chief operating and chief executive roles. During this time Jon has become known for his ability to successfully integrate strategies and tactics into well executed operating plans, building strong teams and achieving excellent results. Jon has served as President and CEO of The PowerTech Group, a security and compliance software company sold to Help/Systems in 2008, and Microserv Technology Services, a nationwide tech services company which was acquired by Halifax Corporation in 2003. Earlier he served as President and COO of Traveling Software, a leading developer of communications software in Seattle. Prior to his operating roles Jon held vice president roles in sales, marketing and business development for technology companies. Jon has taught in the software product management program at the University of Washington and holds a business administration degree from San Francisco State University. Field Report – SolveDirect Corum acted as exclusive M&A advisor to SolveDirect has announced intentions to acquire
  • 4. 4 Contact: ambers@corumgroup.com Corum Research Report Elon Gasper Vice President, Director of Research Contact: in/elongasper elong@corumgroup.com Amber Stoner Senior Analyst Jason Steblay Research Analyst Contact: jasons@corumgroup.com Alina Soltys Senior Analyst Contact: in/soltysa alina.soltys alinas@corumgroup.com
  • 5. 5 Public Markets -2% 3% 8% 13% 18% 23% Weekly Percentage Change NASDAQ S&P TECH Dow Jones
  • 6. 6 Q1:12 Q1:13 # of Transactions 919 775 # of Mega Deals 8 10 Largest Deal $5.0B $24.4B Private Equity Deals 29 36 # VC backed Exits 171 172 % Cross Border Transactions 30% 32% % of Startup Acquisitions* 14% 12% Average Life of Target 13 14 Corum Index * 0 to 3 years Buyer Seller Price Silver Lake Partners Dell Inc. $24.4b Liberty Global Virgin Media Group $16b VTB Group Tele2 AB $2.4b Oracle Acme Packet $2.1b Charter Communications Bresnan Communications $1.6b Worldwide mergers and acquisitions activity was up 10 percent in the first quarter 2013 - Thomson Reuters quarterly report .
  • 7. 7 Q1:12 Q1:13 # of Transactions 919 775 # of Mega Deals 8 10 Largest Deal $5.0B $24.4B Private Equity Deals 29 36 # VC backed Exits 171 172 % Cross Border Transactions 30% 32% % of Startup Acquisitions* 14% 12% Average Life of Target 13 14 Corum Index * 0 to 3 years Buyer Seller Price Silver Lake Partners Dell Inc. $24.4b Liberty Global Virgin Media Group $16b VTB Group Tele2 AB $2.4b Oracle Acme Packet $2.1b Charter Communications Bresnan Communications $1.6b Worldwide mergers and acquisitions activity was up 10 percent in the first quarter 2013 - Thomson Reuters quarterly report . Divested to Sector: Telecom Target: Tele2 AB [RUSSIA] Acquirer: VTB Group [RUSSIA] Transaction Value: $2.4 billion in cash - Tele2 is one of Europe’s leading telecom operators with 22 million subscribers in Russia - Acquisition includes the Russian division of Tele2 Deal Spotlight
  • 8. 8 FLASHBACK: Corum April 2012 Special Impact Report  The JOBS Act makes it easier to  Raise private money  Stay private longer  Go public  Profound impact on Tech M&A  3 main parts  Title I IPO On-Ramp  Title II Solicitation rules relaxed + Safe Harbors  Title III Crowdfunding UPDATE: SEC blew deadline, postponed implementation (as Corum predicted in April 2012) Obama: “Because of this bill, start-ups and small business have access to a big, new pool of potential investors.”
  • 9. 9  Big Data Visualization  IPO - Seeking to raise about $150m  NYSE symbol “DATA” come May  Financials  Revenue: $128m  Net Income $1.6m  Sales growth rate up 105% AS SEEN ON Market Spotlight Series
  • 10. 10 Q1:11 Q2:11 Q3:11 Q4:11 Q1:12 Q2:12 Q3:12 Q4:12 Q1:13 EV/EBITDA 12.34x 12.29x 9.44x 10.49x 10.95x 9.83x 10.43x 9.91 10.79 EV/S 2.38x 2.27x 1.82x 1.77x 2.04x 1.76x 1.80x 1.78 1.92 Corum Index – Aggregate Valuations 6-markets
  • 11. 11 Horizontal Application Software Market Public Valuation Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 16.55 x 11.77 x 13.58 x 13.13 x 12.72 x 14.03 x 15.08 x 12.75 x 13.25 x 13.42 x 15.00 x 12.44 x 12.97 x EV/S 3.22 x 2.72 x 2.47 x 2.63 x 2.52 x 2.77 x 2.75 x 2.76 x 2.83 x 2.61 x 2.67 x 2.57 x 2.71 x
  • 12. 12 Horizontal Application Software Market  Informatica Corp.  MicroStrategy Inc.  Amdocs Ltd.  Nuance Communications  Salesforce.com  Convergys Corp.  Open Text Corp.  Oracle Corp  NetSuite  Callidus Software Inc.  Saba Software Inc.  Trimble Navigation Ltd.  Concur Technologies Inc.  SPS Commerce Inc.  Manhattan Associates Inc. Business Intelligence EV/S 2.76 x EV/EBITDA 17.66 x Communications EV/S 1.21 x EV/EBITDA 11.76 x Content Mgmt. EV/S 2.88 x EV/EBITDA 9.87 x Human Resources EV/S 2.12 x EV/EBITDA 67.81 x ERP EV/S 2.55 x EV/EBITDA 10.15 x SCM EV/S 5.50 x EV/EBITDA 15.81 x CRM EV/S 4.16 x EV/EBITDA 19.96 x Horizontal Other EV/S 4.14 x EV/EBITDA 14.21 x
  • 13. 13 Horizontal Application Software Market  Informatica Corp.  MicroStrategy Inc.  Amdocs Ltd.  Nuance Communications  Salesforce.com  Convergys Corp.  Open Text Corp.  Oracle Corp  NetSuite  Callidus Software Inc.  Saba Software Inc.  Trimble Navigation Ltd.  Concur Technologies Inc.  SPS Commerce Inc.  Manhattan Associates Inc. Business Intelligence EV/S 2.76 x EV/EBITDA 17.66 x Communications EV/S 1.21 x EV/EBITDA 11.76 x Content Mgmt. EV/S 2.88 x EV/EBITDA 9.87 x Human Resources EV/S 2.12 x EV/EBITDA 67.81 x ERP EV/S 2.55 x EV/EBITDA 10.15 x SCM EV/S 5.50 x EV/EBITDA 15.81 x CRM EV/S 4.16 x EV/EBITDA 19.96 x Horizontal Other EV/S 4.14 x EV/EBITDA 14.21 x Sold to Target: G4 Analytics Acquirer: The Nielsen Company Transaction Value: Undisclosed - Extends Nielsen’s position as a global leader in trade promotion management, combining Nielsen’s data and trade promotion modeling capabilities for strategic planning with G4's applications for tactical sales planning and execution. Sold to Deal Spotlights: BI Target: Angoss Software Corporation [CAN] Acquirer: Peterson Partners Transaction Value: $5.35 million - Provides business intelligence (BI) analytics software and software as a service (SaaS) for the financial, retail, insurance and technology sectors. Software enables businesses to gain insight into sales figures, marketing campaign and credit risks.
  • 14. 14 Horizontal Application Software Market  Informatica Corp.  MicroStrategy Inc.  Amdocs Ltd.  Nuance Communications  Salesforce.com  Convergys Corp.  Open Text Corp.  Oracle Corp  NetSuite  Callidus Software Inc.  Saba Software Inc.  Trimble Navigation Ltd.  Concur Technologies Inc.  SPS Commerce Inc.  Manhattan Associates Inc. Business Intelligence EV/S 2.76 x EV/EBITDA 17.66 x Communications EV/S 1.21 x EV/EBITDA 11.76 x Content Mgmt. EV/S 2.88 x EV/EBITDA 9.87 x Human Resources EV/S 2.12 x EV/EBITDA 67.81 x ERP EV/S 2.55 x EV/EBITDA 10.15 x SCM EV/S 5.50 x EV/EBITDA 15.81 x CRM EV/S 4.16 x EV/EBITDA 19.96 x Horizontal Other EV/S 4.14 x EV/EBITDA 14.21 x Sold to Sector: Business Intelligence Target: Altosoft, Inc. Acquirer: Kofax Transaction Value: $13.5 million in cash - Altosoft’s software provides rapid, no-coding development of near real time reporting and dashboard applications through the use of a data integration and analytics engine utilizing in-memory techniques. - Kofax now has all of the core capabilities necessary to provide market leading smart process applications. Deal Spotlight: BI
  • 15. 15 Horizontal Application Software Market  Informatica Corp.  MicroStrategy Inc.  Amdocs Ltd.  Nuance Communications  Salesforce.com  Convergys Corp.  Open Text Corp.  Oracle Corp  NetSuite  Callidus Software Inc.  Saba Software Inc.  Trimble Navigation Ltd.  Concur Technologies Inc.  SPS Commerce Inc.  Manhattan Associates Inc. Business Intelligence EV/S 2.76 x EV/EBITDA 17.66 x Communications EV/S 1.21 x EV/EBITDA 11.76 x Content Mgmt. EV/S 2.88 x EV/EBITDA 9.87 x Human Resources EV/S 2.12 x EV/EBITDA 67.81 x ERP EV/S 2.55 x EV/EBITDA 10.15 x SCM EV/S 5.50 x EV/EBITDA 15.81 x CRM EV/S 4.16 x EV/EBITDA 19.96 x Horizontal Other EV/S 4.14 x EV/EBITDA 14.21 x Target: conTgo [UK] Acquirer: Concur Technologies - Adds comprehensive location-based services with advanced mobile communications and messaging capabilities to Concur's offerings, extending the value of the Concur T&E Cloud for partners, suppliers and clients alike. Sold to Deal Spotlights: HCM Sold to Target: CERTPOINT Systems Acquirer: Infor Global Solutions - Enables Infor to offer customers an end-to-end HCM solution, delivered to help maximize access and business insight and achieve breakthrough performance.
  • 16. 16 Consumer Application Software Market Public Valuation Digital Content EV/S 1.10 x EV/EBITDA 11.64 x Video Games EV/S 2.03 x EV/EBITDA 6.21 x  Adobe Systems, Inc.  Netflix  Electronic Arts, Inc.  Activision Blizzard, Inc. Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 6.77 x 6.77 x 8.38 x 8.17 x 7.66 x 6.90 x 7.67 x 7.10 x 6.16 x 6.07 x 6.03 x 6.46 x 7.26 x EV/S 1.67 x 1.18 x 1.13 x 1.05 x 1.04 x 1.36 x 1.25 x 1.26 x 1.31 x 1.29 x 1.68 x 1.45 x 1.66 x
  • 17. 17 Consumer Application Software Market Deal Spotlights Digital Content EV/S 1.10 x EV/EBITDA 11.64 x Video Games EV/S 2.03 x EV/EBITDA 6.21 x  Adobe Systems, Inc.  Netflix  Electronic Arts, Inc.  Activision Blizzard, Inc. Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 6.77 x 6.77 x 8.38 x 8.17 x 7.66 x 6.90 x 7.67 x 7.10 x 6.16 x 6.07 x 6.03 x 6.46 x 7.26 x EV/S 1.67 x 1.18 x 1.13 x 1.05 x 1.04 x 1.36 x 1.25 x 1.26 x 1.31 x 1.29 x 1.68 x 1.45 x 1.66 x Target Rumored Value Description $10 million Provides an online service that enables consumers to save, organize and rate Web content through www.snip.it. Website also provides social networking features. Undisclosed Provides a smart phone application that enables consumers to search for new restaurants and businesses nearby based on recommendations from places they have previously visited. Undisclosed Provides a smart phone application that enables iOS device users to receive recommendations on books, movies and restaurants. $30 million Provides a smart phone application to enable Apple iOS device users to receive custom news summaries. Summly
  • 18. 18 Internet Market Public Valuation  Akami Technologies Inc.  Juniper Networks Inc.  Amazon.com  Google Inc. Internet Infrastructure EV/S 1.73 x EV/EBITDA 12.20 x Internet Pure Play EV/S 1.95 x EV/EBITDA 12.72 x Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 11.47 x 10.81 x 9.86 x 10.08 x 11.22 x 11.40 x 11.67 x 10.00 x 10.49 x 11.93 x 12.61 x 12.26 x 12.30 x EV/S 2.13 x 1.85 x 1.75 x 1.89 x 2.19 x 2.03 x 2.02 x 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x
  • 19. 19 Internet Market Deal Spotlights  Akami Technologies Inc.  Juniper Networks Inc.  Amazon.com  Google Inc. Internet Infrastructure EV/S 1.73 x EV/EBITDA 12.20 x Internet Pure Play EV/S 1.95 x EV/EBITDA 12.72 x Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 11.47 x 10.81 x 9.86 x 10.08 x 11.22 x 11.40 x 11.67 x 10.00 x 10.49 x 11.93 x 12.61 x 12.26 x 12.30 x EV/S 2.13 x 1.85 x 1.75 x 1.89 x 2.19 x 2.03 x 2.02 x 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x Target: Storylane Acquirer: Facebook - Acquired employees of Storylane, which operates a social networking and blogging website that enables users to author long-form content. Sold to Target: Hot Studio Acquirer: Facebook - Acquired employees of Hot Studio, which provides Web design, enterprise and mobile application development, and online marketing consulting services for businesses in the US Sold to
  • 20. 20 Internet Market Deal Spotlights  Akami Technologies Inc.  Juniper Networks Inc.  Amazon.com  Google Inc. Internet Infrastructure EV/S 1.73 x EV/EBITDA 12.20 x Internet Pure Play EV/S 1.95 x EV/EBITDA 12.72 x Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 11.47 x 10.81 x 9.86 x 10.08 x 11.22 x 11.40 x 11.67 x 10.00 x 10.49 x 11.93 x 12.61 x 12.26 x 12.30 x EV/S 2.13 x 1.85 x 1.75 x 1.89 x 2.19 x 2.03 x 2.02 x 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x Sold to
  • 21. 21 Internet Market Public Valuation  Akami Technologies Inc.  Juniper Networks Inc.  Amazon.com  Google Inc. Internet Infrastructure EV/S 1.73 x EV/EBITDA 12.20 x Internet Pure Play EV/S 1.95 x EV/EBITDA 12.72 x Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 11.47 x 10.81 x 9.86 x 10.08 x 11.22 x 11.40 x 11.67 x 10.00 x 10.49 x 11.93 x 12.61 x 12.26 x 12.30 x EV/S 2.13 x 1.85 x 1.75 x 1.89 x 2.19 x 2.03 x 2.02 x 2.06 x 1.96 x 1.89 x 2.22 x 1.99 x 1.88 x Sold to Sector: Internet Pure Play Target: Goodreads Acquirer: Amazon Transaction Value: Estimated $150 million - Goodreads is a leading site for readers and book recommendations that helps people find and share books they love - Both Amazon and Goodreads have helped thousands of authors reach a wider audience and make a better living at their craft.
  • 22. 22 Vertical Application Software Market Public Valuation Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 10.63 x 9.54 x 9.34 x 9.78 x 9.51 x 9.80 x 10.06 x 9.61 x 9.92 x 10.02 x 10.23 x 12.08 x 11.67 x EV/S 2.36 x 2.12 x 2.01 x 2.09 x 2.00 x 2.01 x 2.28 x 2.24 x 2.17 x 2.11 x 2.32 x 2.35 x 2.49 x
  • 23. 23 Vertical Application Software Market  Autodesk Inc.  Parametric Technology  Itron Inc.  Schlumberger Ltd.  Advent Software Inc.  Fiserv Inc.  Harris Corp.  Lockheed Martin Corp.  Cerner Corp.  AllScripts Healthcare Inc.  Rockwell Automation Inc.  OpenTable Inc. A/E/C (Architecture / Engineering / Construction) EV/S 2.82 x EV/EBITDA 14.56 x Government EV/S 0.78 x EV/EBITDA 6.05 x Energy & Environment EV/S 2.49 x EV/EBITDA 9.54 x Financial Services EV/S 3.65 x EV/EBITDA 14.24 x Vertical Other EV/S 1.91 x EV/EBITDA 11.11 x Healthcare EV/S 3.91 x EV/EBITDA 21.88 x
  • 24. 24 Vertical Application Software Market Deal Spotlights: Insurance Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 10.63 x 9.54 x 9.34 x 9.78 x 9.51 x 9.80 x 10.06 x 9.61 x 9.92 x 10.02 x 10.23 x 12.08 x 11.67 x EV/S 2.36 x 2.12 x 2.01 x 2.09 x 2.00 x 2.01 x 2.28 x 2.24 x 2.17 x 2.11 x 2.32 x 2.35 x 2.49 x Target Acquirer Description Provides policy administration software for commercial property and casualty insurance carriers throughout the US. Property & Casualty assets, which provide EDI software for the insurance sector in the US. Provides worker compensation policy and related insurance quote software as a service (SaaS) for insurance markets. Provides insurance and reinsurance policy quotation and placement software as a service (SaaS) for the insurance sector in Europe and the Middle East.
  • 25. 25 Vertical Application Software Market Deal Spotlight Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 10.63 x 9.54 x 9.34 x 9.78 x 9.51 x 9.80 x 10.06 x 9.61 x 9.92 x 10.02 x 10.23 x 12.08 x 11.67 x EV/S 2.36 x 2.12 x 2.01 x 2.09 x 2.00 x 2.01 x 2.28 x 2.24 x 2.17 x 2.11 x 2.32 x 2.35 x 2.49 x Sold to Sector: Financial Services Target: Camilion Solutions, Inc. [CAN] Acquirer: SAP AG [Germany] - Broadens portfolio in the insurance space, providing insurers with powerful software tools to streamline the management and creation of new products - Prominently positions SAP in the rapidly emerging market for integrated core insurance platforms, the industry's first "Super Suite.“ - “The first serious move into the insurance vertical solutions space by a global technology firm since Oracle bought AdminServer and Skywire in 2008.” – Novarica, via InsuranceNetworking.com
  • 26. 26 Infrastructure Software Market Public Valuation Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 11.97 x 10.74 x 9.64 x 10.46 x 10.58 x 10.67 x 10.61 x 9.87 x 9.72 x 10.01 x 10.84 x 9.69 x 10.31 x EV/S 2.27 x 2.39 x 2.25 x 2.38 x 2.09 x 2.16 x 2.07 x 1.99 x 1.99 x 2.27 x 2.38 x 2.15 x 2.21 x
  • 27. 27 Infrastructure Software Market  BroadSoft Inc.  Vocus, Inc.  Compuware Corp.  Progress Software Corp.  BluePhoenix Solutions Ltd.  Tibco Software Inc.  Cisco Systems Inc.  NetScout Systems Inc.  Symantec Corp.  VeriSign Inc.  BMC Software Inc.  CA Inc.  EMC Corp.  Qlogic Corp.  Citrix Systems Inc.  VMware Inc. Infrastructure Communications EV/S 1.85 x EV/EBITDA 11.84 x Network Management EV/S 2.62 x EV/EBITDA 10.42 x Storage EV/S 1.18 x EV/EBITDA 5.72 x Virtualization EV/S 3.38 x EV/EBITDA 20.56 x Security EV/S 4.08 x EV/EBITDA 11.37 x Development Tools EV/S 2.74 x EV/EBITDA 12.39 x Legacy/SOA EV/S 3.52 x EV/EBITDA 7.38 x Systems Management EV/S 2.49 x EV/EBITDA 9.68 x
  • 28. 28 Infrastructure Software Market  BroadSoft Inc.  Vocus, Inc.  Compuware Corp.  Progress Software Corp.  BluePhoenix Solutions Ltd.  Tibco Software Inc.  Cisco Systems Inc.  NetScout Systems Inc.  Symantec Corp.  VeriSign Inc.  BMC Software Inc.  CA Inc.  EMC Corp.  Qlogic Corp.  Citrix Systems Inc.  VMware Inc. Infrastructure Communications EV/S 1.85 x EV/EBITDA 11.84 x Network Management EV/S 2.62 x EV/EBITDA 10.42 x Storage EV/S 1.18 x EV/EBITDA 5.72 x Virtualization EV/S 3.38 x EV/EBITDA 20.56 x Security EV/S 4.08 x EV/EBITDA 11.37 x Development Tools EV/S 2.74 x EV/EBITDA 12.39 x Legacy/SOA EV/S 3.52 x EV/EBITDA 7.38 x Systems Management EV/S 2.49 x EV/EBITDA 9.68 x Target: Dartware, LLC Acquirer: Help/Systems Inc. Transaction Value: Undisclosed - Help/Systems can now provids a more expansive solution set for its multi-platform customers: network monitoring and analysis with InterMapper and job scheduling with Skybot Scheduler. Sold to Target: Vineyard Networks [CAN] Acquirer: Procera Networks Transaction Value: $28.4 million - $15.62m in stock and $12.78m in cash - Enables Procera to expand their total addressable market through their OEM business to include enterprise network equipment vendors, adding the entire enterprise space along with additional opportunities in the service provider OEM market. Sold to
  • 29. 29 Infrastructure Software Market  BroadSoft Inc.  Vocus, Inc.  Compuware Corp.  Progress Software Corp.  BluePhoenix Solutions Ltd.  Tibco Software Inc.  Cisco Systems Inc.  NetScout Systems Inc.  Symantec Corp.  VeriSign Inc.  BMC Software Inc.  CA Inc.  EMC Corp.  Qlogic Corp.  Citrix Systems Inc.  VMware Inc. Infrastructure Communications EV/S 1.85 x EV/EBITDA 11.84 x Network Management EV/S 2.62 x EV/EBITDA 10.42 x Storage EV/S 1.18 x EV/EBITDA 5.72 x Virtualization EV/S 3.38 x EV/EBITDA 20.56 x Security EV/S 4.08 x EV/EBITDA 11.37 x Development Tools EV/S 2.74 x EV/EBITDA 12.39 x Legacy/SOA EV/S 3.52 x EV/EBITDA 7.38 x Systems Management EV/S 2.49 x EV/EBITDA 9.68 x Target: Packet Design, Inc. Acquirer: Lone Rock Technology Group Transaction Value: Undisclosed - The leading provider of route analytics software for IP networks - its patented technology provides unique visibility into routing and traffic behavior across the entire cloud. Sold to Target: LineRate Systems Acquirer: F5 Networks, Inc. Transaction Value: Undisclosed - F5 gains access to LineRate’s layer 7+ networking services technology, intellectual property, and engineering talent, further building on F5’s commitment to bring superior service agility, application intelligence, and programmability to software defined data centers. Sold to
  • 30. 30 Infrastructure Software Market  BroadSoft Inc.  Vocus, Inc.  Compuware Corp.  Progress Software Corp.  BluePhoenix Solutions Ltd.  Tibco Software Inc.  Cisco Systems Inc.  NetScout Systems Inc.  Symantec Corp.  VeriSign Inc.  BMC Software Inc.  CA Inc.  EMC Corp.  Qlogic Corp.  Citrix Systems Inc.  VMware Inc. Infrastructure Communications EV/S 1.85 x EV/EBITDA 11.84 x Network Management EV/S 2.62 x EV/EBITDA 10.42 x Storage EV/S 1.18 x EV/EBITDA 5.72 x Virtualization EV/S 3.38 x EV/EBITDA 20.56 x Security EV/S 4.08 x EV/EBITDA 11.37 x Development Tools EV/S 2.74 x EV/EBITDA 12.39 x Legacy/SOA EV/S 3.52 x EV/EBITDA 7.38 x Systems Management EV/S 2.49 x EV/EBITDA 9.68 x Sold to Sector: Network Management Target: Coyote Point Systems Acquirer: Fortinet Transaction Value: Undisclosed - Provides Web, email and file-transfer -focused load balancing, application acceleration and traffic management and server performance optimization appliances for businesses globally. - Should allow Fortinet to focus its efforts on its own hardware by integrating more of its security functionality.
  • 31. 31 IT Services Market Public Valuation Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 8.28 x 8.69 x 7.27 x 7.36 x 7.51 x 7.46 x 7.46 x 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x EV/S 0.57 x 0.59 x 0.44 x 0.53 x 0.54 x 0.46 x 0.45 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x
  • 32. 32 IT Services Market Public Valuation Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 8.28 x 8.69 x 7.27 x 7.36 x 7.51 x 7.46 x 7.46 x 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x EV/S 0.57 x 0.59 x 0.44 x 0.53 x 0.54 x 0.46 x 0.45 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x Sold to Target: 2e2 (4 European subsidiaries) [UK] Acquirer: Logicalis Group [UK] Transaction Value: $31 million - Acquiring four European subsidiaries of 2e2 with operations in Spain, Ireland, the Netherlands and the Channel Islands - Delivers on their stated intentions to grow their European presence and augment their solutions and services capabilities
  • 33. 33 IT Services Market Deal Spotlights Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 EV/EBITDA 8.28 x 8.69 x 7.27 x 7.36 x 7.51 x 7.46 x 7.46 x 6.73 x 7.32 x 8.02 x 8.11 x 9.73 x 10.22 x EV/S 0.57 x 0.59 x 0.44 x 0.53 x 0.54 x 0.46 x 0.45 x 0.47 x 0.48 x 0.50 x 0.51 x 0.50 x 0.54 x Divested to Target: Mitel Networks Corporaton (DataNet CommSource Business) Acquirer: EarthBend Transaction Value: Up to $20m consisting of cash or vendor take-back promissory notes - The divestiture of DataNet CommSource is part of Mitel's ongoing strategy to simplify and focus the company's core business. Target: The Hackett Group (Oracle ERP practice) Acquirer: KPMG Transaction Value: Undisclosed - Broadens KPMG's existing ERP capabilities, while further enhancing the firm's Oracle consulting services EarthBendDivested to
  • 34. 34 Asian IT Services Public Valuation Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 9.22 x 12.00 x 13.36 x 14.24 x 13.40 x 12.15 x 1.72 x 2.49 x 2.64 x 2.80 x 2.76 x 2.76 x
  • 35. 35 Asian IT Services Deal Spotlight Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 9.22 x 12.00 x 13.36 x 14.24 x 13.40 x 12.15 x 1.72 x 2.49 x 2.64 x 2.80 x 2.76 x 2.76 x Sold to Target: Transcend United Technologies Acquirer: AGC Networks [India] Transaction Value: Undisclosed - Acquisition is in line with AGC’s 103 growth strategy offering seamless delivery of 10 key solutions, through 10 key alliances across 10 key geographies. - Transcend’s core competencies in Unified Communications and Data Center Infrastructure, together with the global presence of AGC, positions them as a leader in this rapidly growing space
  • 36. 36 Contact: ambers@corumgroup.com Corum Research Report Elon Gasper Vice President, Director of Research Contact: in/elongasper elong@corumgroup.com Amber Stoner Senior Analyst Jason Steblay Research Analyst Contact: jasons@corumgroup.com Alina Soltys Senior Analyst Contact: in/soltysa alina.soltys alinas@corumgroup.com
  • 37. 37 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. Special Report: China Bruce Milne CEO Corum Group Ltd.
  • 38. 38
  • 39. 39
  • 40. 40
  • 41. 41
  • 42. 42
  • 43. 43
  • 44. 44 China Software/IT M&A Growth Issues  Language  Visas  Insularity  Experience  Leverage  Education  Connections  Trust
  • 45. 51 www.corumgroup.com