Technology Services Investment Banking Group    Financial Technology Market Analysis                  July 2012
Raymond James Financial Technology Investment Banking                                                   Raymond James — A ...
More FinTech Transactions Completed Since 2010 Than Any Other Firm                                                        ...
RJ Underwriting Case Study: Vantiv’s $575M Initial Public Offering                          Vantiv Overview:       March 2...
RJ Advisory Case Study: Intuit’s Online Business Banking Sale to Bottomline                            Intuit Online Busin...
Raymond James Selected Financial Technology Equity Research Coverage    Bank Technology            Payments          Liqui...
Trading Analysis by Sector  (USD in millions)                                                                             ...
Relative Stock Price Performance by Sector                                                  Year-to-Date Performance      ...
Valuation Multiple Analysis by Sector                                        Enterprise Value / 2012E Revenue             ...
Valuation Multiple Analysis by Sector (cont’d)                                                           2012E P / E      ...
Growth and Margin Analysis by Sector                                                2012E Revenue Growth                  ...
Company Trading AnalysisPAYMENTS(USD in millions)                                                                         ...
Company Trading AnalysisBANK TECHNOLOGY(USD in millions)                                                                  ...
Company Trading AnalysisBENEFITS / PAYROLL(USD in millions)                                                               ...
Company Trading AnalysisLIQUIDITY VENUES(USD in millions)                                                                 ...
Company Trading AnalysisTRADING TECHNOLOGY (USD in millions)                                                              ...
Company Trading AnalysisINVESTMENT TECHNOLOGY (USD in millions)                                                           ...
Company Trading AnalysisINFORMATION SERVICES(USD in millions)                                                             ...
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Financial Technology July Market Analysis
Upcoming SlideShare
Loading in …5
×

Financial Technology July Market Analysis

3,389 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
3,389
On SlideShare
0
From Embeds
0
Number of Embeds
67
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Financial Technology July Market Analysis

  1. 1. Technology Services Investment Banking Group Financial Technology Market Analysis July 2012
  2. 2. Raymond James Financial Technology Investment Banking Raymond James — A Full-Service Investment Bank Bank Insurance Benefits / Marketing Payments Technology Technology Payroll Services FinTech Coverage Universe Trading Investment Liquidity Outsourced Information Technology Technology Venues Solutions Services SaaS & Internet & Business Model Transaction Tech-Enabled Outsourcing Enterprise Mobile Expertise Processing Services Services Software SolutionsInvestment Banking Recapitalizations Corporate M&A Public Board Private Debt Valuation / and and Executive Services Advisory Offerings Advisory Placements Origination Fairness Opinions Restructurings Services Jim Bunn Steve Hufford Jon Steele Group Head Managing Director Managing Director (617) 624-7011 (404) 442-5807 (617) 624-7020 Senior Banking Jim.Bunn@RaymondJames.com Steve.Hufford@RaymondJames.com Jon.Steele@RaymondJames.com Team Brendan Ryan Kate Crespo Senior Vice President Vice President (617) 624-7019 (617) 624-7012 Brendan.Ryan@RaymondJames.com Kate.M.Crespo@RaymondJames.com 2
  3. 3. More FinTech Transactions Completed Since 2010 Than Any Other Firm Tech-Enabled BPO Provider Online Business to Mortgage / $77 Million Banking ~$600 Million $202 Million Acquisition of $115 Million $575 Million $72 Million Auto Lenders Sale to Sale to Sale to Sale to Initial Public Initial Public Sale to Offering Offering Undisclosed Buyer March 2012 March 2012 February 2012 January 2012 October 2011 October 2011 September 2011 September 2011 Payment processing Commercial banking Institutional FX trading Tech-enabled BPO provider Banking / payments Benefits administration and Investment management e-Commerce platform for solutions software technology software debit card processing technology digital goods Subsidiary of ~$700 Million Sale to Merger of Equals Sale to $40 Million M&A Advisory in $213 Million Sale to $137 Million with Sale to Connection with Follow-On Sale to Unsolicited Offer Offering June 2011 July 2011 July 2011 Terminated June 2011 May 2011 March 2011 March 2011 February 2011Active trading technology Financial services Banking / payments High-frequency trading Billing and payments Community bank Banking technology and Asset / wealth consulting software technology technology management solutions payment processing management software $81 Million $352 Million $201 Million Sale of Retail $80 Million $340 Million Sale to Sale to Initial Public Initial Public Sale to FX Business to Sale to Initial Public Offering Offering Offering December 2010 December 2010 November 2010 October 2010 August 2010 July 2010 July 2010 June 2010Retail FX trading services Fuel / fleet cards Asset / wealth Retail FX trading services Financial data and Card processing for Benefits administration Liquidity venue management technology information services credit unions payments and software Acquisition of $124 Million $30 Million Assent Professional $28 Million $40 Million $185 Million $30 Million Initial Public Investment Trading Business Acquisition of Sale to Initial Public Acquisition of Offering by Offering June 2010 June 2010 June 2010 June 2010 May 2010 March 2010 March 2010 Technology and payment Active trading technology Active trading technology Active trading technology Prepaid card services Asset / wealth Payments / banking software solutions to higher education management software 3
  4. 4. RJ Underwriting Case Study: Vantiv’s $575M Initial Public Offering Vantiv Overview: March 2012  Vantiv is an integrated payment processor differentiated by a single, proprietary technology platform  The Company’s Merchant Services segment offers acquiring and processing solutions primarily for retailers, for whom it authorizes, clears and settles electronic payment transactions  Vantiv’s Financial Institution Services segment provides card issuer processing, payment network processing, fraud protection and prepaid program management services to banks and credit unions $575 Million  Founded in 1971 and headquartered in Cincinnati, Ohio Initial Public Offering  Owned by Advent International and Fifth Third Bancorp Vantiv Highlights:Raymond James acted  Third largest merchant transaction acquirer and the largest PIN debit acquirer in the United Statesas an underwriter on  Vantiv processed over 12.9 billion transactions in 2011  Vantiv generates revenue based primarily on transaction fees paid by merchants or financial institutionsVantiv’s initial public  For 2011, the Company had net revenue of $866 million and pro forma adjusted EBITDA of $439 million, or 50.7% of net revenueoffering.  Integrated business and single platform also enable Vantiv to innovate, develop and deploy new services and provide the Company with significant economies of scale  Revenue & EBITDA trends: $1,000.0 $865.7 ($ in MiIlions) $750.0 $566.1 $451.4 $474.1 $438.8 $500.0 $400.5 $278.7 $298.4 $250.0 $0.0 2008A 2009A 2010A 2011A Net Revenue Pro Forma Adjusted EBITDA Offering Overview:  Vantiv filed an S-1 on November 10, 2011 and completed a $575 million IPO (including the over-allotment option) on March 22, 2012  Trades under the ticker “VNTV” on the New York Stock Exchange  Priced at $17.00 per share, the middle of its $16.00 to $18.00 filing range  Share price has increased 37.0% since the IPO 4
  5. 5. RJ Advisory Case Study: Intuit’s Online Business Banking Sale to Bottomline Intuit Online Business Banking Overview: March 2012  Intuit Financial Solutions (“IFS”) provides online business and commercial banking solutions to financial institutions and credit unions  IFS’ online business and commercial banking solutions serve approximately 600 financial institution clients and 180,000 end-user businesses  In 2011, IFS deemed the business non-strategic, electing instead to focus its resources to providing connected services to small businesses and Online Business Banking consumers  The unit is based in Norcross, Georgia and has approximately 80 employees Sale to Transaction Overview and Rationale:  Upon deeming the unit non-strategic, Intuit sought a financial advisor to assist in the complicated carve-out of the assets and disposition of the business  Raymond James was engaged to serve as Intuit’s sole financial advisor in the transaction  Raymond James led the carve-out, diligence and marketing processes in support of the transaction, and also led Intuit’s negotiations withRaymond James Bottomline and several other potential buyers  Raymond James conducted a broad marketing process that surfaced a buyer (Bottomline) that was not originally believed to be a likely bidder foracted as the exclusive the businessfinancial advisor to  The business was sold by Intuit to Bottomline for an undisclosed price in a transaction that was consummated on March 12, 2012Intuit in thetransaction. Successful Outcome:  Intuit accomplished all of its principal objectives in the transaction, including the disposition of non-strategic assets for an attractive price and the retention by Bottomline of all of the unit’s employees  Bottomline acquired a SaaS-based platform on which to conduct its traditional transactional banking business. Bottomline now expects to offer transactional banking services to a broader universe of financial institutions than the Global 50 banks that it has traditionally served. 5
  6. 6. Raymond James Selected Financial Technology Equity Research Coverage Bank Technology Payments Liquidity Venues Trading Technology Investment Technology Information Services Outsourced Solutions Benefits / Payroll Marketing Services Insurance Technology 6
  7. 7. Trading Analysis by Sector (USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P /E Growth Margin EPS to Growth Sector (1) Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth Ratio Benefits / Payroll $5,833.2 $5,711.8 7.2% 4.3% 57.5% 18.3% 4.1x 3.8x 3.4x 11.4x 10.9x 10.0x 20.1x 17.8x 7.5% 8.0% 28.9% 29.3% 15.1% 2.0 Liquidity Venues 5,354.2 5,190.2 2.9% (5.7%) (7.7%) (25.9%) 4.9x 4.8x 4.5x 8.5x 8.9x 7.7x 15.3x 13.9x 1.4% 8.7% 56.0% 56.7% 9.2% 1.5 Information Services 3,476.3 4,034.0 6.4% (4.4%) 56.4% 4.9% 2.9x 2.7x 2.6x 11.1x 9.2x 8.4x 15.0x 14.5x 4.8% 7.6% 30.2% 30.6% 13.1% 1.3 Outsourced Solutions 2,921.4 3,412.8 9.0% (4.2%) 50.5% (25.4%) 1.3x 1.3x 1.2x 7.0x 6.5x 6.0x 12.5x 10.5x 3.0% 5.9% 18.7% 18.7% 11.9% 1.0 Investment Technology 2,384.2 3,002.0 10.7% (13.2%) 14.2% (29.9%) 2.6x 2.5x 2.3x 10.7x 9.7x 7.9x 15.5x 13.5x 5.0% 8.5% 26.8% 28.8% 12.4% 1.4 Bank Technology 1,947.1 2,509.1 12.9% 11.6% 55.8% (14.5%) 2.5x 2.4x 2.3x 8.7x 8.1x 7.4x 13.8x 11.7x 4.1% 5.3% 24.8% 25.2% 11.7% 1.2 Marketing Services 1,838.7 1,967.9 2.9% 4.5% 97.8% 26.5% 1.2x 1.1x 1.1x 7.9x 7.0x 6.6x 16.1x 14.6x 4.7% 5.7% 19.8% 20.1% 13.5% 1.4 Insurance Technology 1,480.6 1,278.8 (5.7%) 3.0% 80.4% 96.1% 4.3x 3.9x 2.9x 9.8x 10.3x 9.6x 15.7x 15.3x 5.9% 7.8% 19.5% 20.0% 13.2% 1.2 Payments 866.3 1,197.0 10.6% (4.5%) 53.2% (12.5%) 2.4x 2.3x 2.2x 9.6x 8.4x 7.9x 15.2x 13.3x 11.3% 9.3% 26.9% 27.9% 15.0% 1.0 Trading Technology (2) 975.3 975.3 (0.9%) (22.6%) (28.9%) (34.3%) 1.2x 1.2x 1.2x 8.1x 5.9x 5.5x 15.0x 9.9x (3.5%) 8.1% 21.5% 25.8% 11.0% 1.5 Overall Median $2,165.6 $2,755.5 6.8% (4.3%) 54.5% (13.5%) 2.5x 2.5x 2.3x 9.2x 8.7x 7.8x 15.3x 13.7x 4.7% 7.9% 25.8% 26.9% 12.7% 1.4Source: Capital IQ.Note: Sectors sorted by Enterprise Value.(1) Denotes sector median value.(2) Market Capitalization used in place of Enterprise Value. 7
  8. 8. Relative Stock Price Performance by Sector Year-to-Date Performance One-Year Performance 15.0% 15.0% 12.9% 11.6% 10.0% 10.7% 10.6% 10.0% 9.0% 4.5% 5.0% 4.3% 3.0% 7.2% 6.4% 0.0% 5.0% 2.9% 2.9% (5.0%) (4.2%) (4.4%) (4.5%) (5.7%) 0.0% (10.0%) (0.9%) (15.0%) (13.2%) (5.0%) (5.7%) (20.0%) (22.6%) (10.0%) (25.0%) Bank Investment Payments Outsourced Benefits / Information Liquidity Marketing Trading Insurance Bank Marketing Benefits / Insurance Outsourced Information Payments Liquidity Investment Trading Technology Technology Solutions Payroll Services Venues Services Technology Technology Technology Services Payroll Technology Solutions Services Venues Technology Technology Three-Year Performance Five-Year Performance120.0% 100.0% 96.1% 97.8%100.0% 75.0% 80.4% 80.0% 50.0% 57.5% 56.4% 55.8% 60.0% 53.2% 50.5% 26.5% 40.0% 25.0% 18.3% 4.9% 20.0% 14.2% (0.0%) (0.0%) (12.5%) (14.5%) (7.7%) (25.0%)(20.0%) (25.4%) (25.9%) (29.9%) (34.3%) (28.9%)(40.0%) (50.0%) Marketing Insurance Benefits / Information Bank Payments Outsourced Investment Liquidity Trading Insurance Marketing Benefits / Information Payments Bank Outsourced Liquidity Investment Trading Services Technology Payroll Services Technology Solutions Technology Venues Technology Technology Services Payroll Services Technology Solutions Venues Technology TechnologySource: Capital IQ.Data represent median performance for each sector. 8
  9. 9. Valuation Multiple Analysis by Sector Enterprise Value / 2012E Revenue Enterprise Value / 2013E Revenue5.0x 4.8x 5.0x 4.5x4.0x 3.9x 4.0x 3.8x 3.4x 3.0x 2.9x3.0x 2.7x 2.6x 2.5x 2.4x 2.3x 2.3x 2.3x 2.2x2.0x 2.0x 1.3x 1.2x 1.2x 1.1x 1.2x 1.1x1.0x 1.0x0.0x 0.0x Liquidity Insurance Benefits / Information Investment Bank Payments Outsourced Trading Marketing Liquidity Benefits / Insurance Information Investment Bank Payments Outsourced Trading Marketing Venues Technology Payroll Services Technology Technology Solutions Technology Services Venues Payroll Technology Services Technology Technology Solutions Technology Services Enterprise Value / 2012E EBITDA Enterprise Value / 2013E EBITDA12.0x 12.0x 10.9x 10.3x 10.0x10.0x 9.7x 10.0x 9.6x 9.2x 8.9x 8.4x 8.4x 8.1x 7.9x 7.9x 7.7x 8.0x 8.0x 7.4x 7.0x 6.5x 6.6x 5.9x 6.0x 6.0x 6.0x 5.5x 4.0x 4.0x 2.0x 2.0x 0.0x 0.0x Benefits / Insurance Investment Information Liquidity Payments Bank Marketing Outsourced Trading Benefits / Insurance Information Payments Investment Liquidity Bank Marketing Outsourced Trading Payroll Technology Technology Services Venues Technology Services Solutions Technology Payroll Technology Services Technology Venues Technology Services Solutions TechnologySource: Capital IQ.Data represent median multiples for each sector. 9
  10. 10. Valuation Multiple Analysis by Sector (cont’d) 2012E P / E 2013E P / E22.0x 20.0x 20.1x20.0x 17.8x 18.0x18.0x 16.0x 15.3x 16.1x 14.6x 14.5x 15.7x 15.5x16.0x 15.3x 15.2x 15.0x 13.9x 15.0x 14.0x 13.5x 13.3x 13.8x14.0x 12.5x 12.0x 11.7x12.0x 10.5x 9.9x 10.0x10.0x 8.0x 8.0x 6.0x 6.0x 4.0x 4.0x 2.0x 2.0x 0.0x 0.0x Benefits / Marketing Insurance Investment Liquidity Payments Information Trading Bank Outsourced Benefits / Insurance Marketing Information Liquidity Investment Payments Bank Outsourced Trading Payroll Services Technology Technology Venues Services Technology Technology Solutions Payroll Technology Services Services Venues Technology Technology Solutions Technology Price / Earnings to Growth Ratio 2.0 2.0 1.8 1.6 1.5 1.5 1.4 1.4 1.3 1.4 1.2 1.2 1.2 1.0 1.0 1.0 0.8 0.6 0.4 0.2 0.0 Benefits / Trading Liquidity Marketing Investment Information Bank Insurance Outsourced Payments Payroll Technology Venues Services Technology Services Technology Technology SolutionsSource: Capital IQ.Data represent median multiples for each sector. 10
  11. 11. Growth and Margin Analysis by Sector 2012E Revenue Growth 2013E Revenue Growth12.0% 11.3% 10.0% 9.3% 8.7%10.0% 8.5% 8.1% 8.0% 8.0% 7.8% 7.6% 8.0% 7.5% 5.9% 6.0% 5.9% 5.0% 6.0% 5.7% 4.8% 4.7% 5.3% 4.1% 4.0% 3.0% 4.0% 2.0% 1.4% 0.0% 2.0%(2.0%)(4.0%) (3.5%) 0.0% Payments Benefits / Insurance Investment Information Marketing Bank Outsourced Liquidity Trading Payments Liquidity Investment Trading Benefits / Insurance Information Outsourced Marketing Bank Payroll Technology Technology Services Services Technology Solutions Venues Technology Venues Technology Technology Payroll Technology Services Solutions Services Technology 2012E EBITDA Margin 2013E EBITDA Margin60.0% 60.0% 56.0% 56.7%50.0% 50.0%40.0% 40.0% 30.2% 30.6% 28.9% 29.3% 28.8%30.0% 30.0% 27.9% 26.9% 26.8% 25.8% 25.2% 24.8% 21.5% 19.8% 19.5% 20.1% 20.0%20.0% 18.7% 20.0% 18.7%10.0% 10.0% 0.0% 0.0% Liquidity Information Benefits / Payments Investment Bank Trading Marketing Insurance Outsourced Liquidity Information Benefits / Investment Payments Trading Bank Marketing Insurance Outsourced Venues Services Payroll Technology Technology Technology Services Technology Solutions Venues Services Payroll Technology Technology Technology Services Technology SolutionsSource: Capital IQ.Data represent median values for each sector. 11
  12. 12. Company Trading AnalysisPAYMENTS(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioVisa, Inc. $83,191.4 $80,234.4 21.8% 40.5% 103.3% NA 8.2x 7.6x 6.8x 12.9x 12.0x 10.7x 19.6x 16.9x 11.7% 11.6% 63.3% 64.1% 19.0% 1.0eBay Inc. 54,244.5 50,458.5 38.5% 28.3% 150.4% 30.5% 4.1x 3.6x 3.1x 14.5x 11.1x 9.6x 17.8x 15.4x 21.1% 15.3% 32.4% 32.3% 13.6% 1.3Mastercard Incorporated 54,357.5 49,188.5 15.4% 36.8% 159.4% 159.3% 7.1x 6.5x 5.7x 12.7x 11.5x 10.0x 19.4x 16.5x 13.3% 13.0% 56.3% 57.5% 18.1% 1.1Discover Financial Services 17,805.7 31,633.0 44.1% 30.2% 236.7% NA 4.9x 4.2x 4.0x NA NA NA 8.3x NA 6.1% 4.4% NA NA 9.3% 0.9Alliance Data Systems Corporation 6,797.9 13,056.3 30.0% 42.6% 226.8% 74.7% 3.9x 3.7x 3.4x 13.3x 11.2x 10.3x 15.7x 13.9x 11.9% 7.9% 32.8% 33.0% 15.4% 1.0The Western Union Company 10,322.1 12,556.0 (7.8%) (16.8%) 1.2% (19.2%) 2.2x 2.2x 2.1x 7.7x 7.4x 6.9x 9.6x 8.7x 5.9% 4.9% 29.2% 29.7% 11.2% 0.9Sage Group plc 5,426.7 5,237.2 (5.7%) (4.5%) 53.2% 18.3% 2.5x 2.4x 2.3x 8.7x 8.5x 8.0x 13.4x 12.3x 2.8% 4.7% 28.9% 29.3% 4.3% 3.1VeriFone Systems, Inc. 3,567.9 4,849.6 (6.8%) (25.0%) 330.9% (6.1%) 3.0x 2.4x 2.2x 18.1x 9.1x 8.6x 11.9x 10.0x 38.8% 11.7% 26.6% 25.3% 28.3% 0.4Total System Services, Inc. 4,524.7 4,425.1 22.3% 27.4% 74.7% (18.9%) 2.4x 2.4x 2.3x 9.6x 8.4x 7.8x 18.6x 16.8x 2.4% 6.7% 28.7% 28.9% 9.9% 1.9FleetCor Technologies, Inc. 2,911.4 3,419.5 17.3% 18.0% NA NA 6.2x 5.5x 5.0x 12.5x 10.4x 9.2x 13.5x 12.0x 23.1% 9.8% 52.4% 54.1% 16.7% 0.8Global Payments Inc. 3,396.1 3,415.7 (8.8%) (15.8%) 13.8% 9.0% 1.6x 1.5x 1.4x 7.0x 6.8x 6.2x 12.7x 11.6x 11.8% 9.5% 22.0% 21.9% 12.1% 1.1Wright Express Corp. 2,398.6 2,703.7 13.7% 16.7% 131.2% 80.1% 4.7x 4.5x 4.1x 10.1x 9.1x 8.2x 14.7x 13.0x 8.2% 9.0% 49.4% 50.0% 13.8% 1.1Wirecard AG 2,119.5 1,782.2 23.1% 22.8% 121.3% 92.1% 4.2x 3.6x 3.1x 16.3x 13.2x 11.0x 21.1x 17.9x 22.1% 17.7% 27.5% 27.9% 17.8% 1.2Cardtronics Inc. 1,332.8 1,788.8 11.6% 27.4% 655.3% NA 2.6x 2.3x 2.2x 11.2x 9.6x 8.5x 18.6x 16.0x 24.2% 7.6% 24.2% 25.5% 15.0% 1.2Moneygram International Inc. 844.4 1,610.4 (17.7%) (45.8%) (22.3%) (93.5%) 1.3x 1.2x 1.1x 6.1x 6.2x 5.7x 14.6x 11.2x 8.1% 8.3% 19.1% 19.4% 15.0% 1.0Heartland Payment Systems, Inc. 1,166.1 1,197.0 23.5% 44.1% 207.3% 2.6% 2.5x 2.3x 2.1x 10.4x 8.4x 7.5x 19.4x 16.5x 9.3% 9.8% 27.0% 27.6% 15.6% 1.2Euronet Worldwide Inc. 866.3 1,029.3 (7.6%) 8.8% (13.2%) (41.5%) 0.9x 0.8x 0.8x 7.4x 6.5x 5.8x 10.6x 9.3x 8.8% 7.8% 12.5% 13.0% 13.7% 0.8PayPoint plc 740.6 685.4 27.5% 35.4% 37.5% 13.2% 5.3x 4.9x 4.7x 10.5x 10.1x 9.7x 16.4x 15.0x 3.7% 4.3% 48.6% 48.9% 11.0% 1.5Netspend Holdings, Inc. 702.7 691.3 13.3% (8.3%) NA NA 2.2x 2.0x 1.8x 9.1x 7.5x 6.4x 17.4x 14.4x 12.5% 12.5% 26.8% 27.8% 19.4% 0.9Higher One Holdings, Inc. 691.6 645.7 (33.7%) (36.3%) NA NA 3.5x 3.1x 2.7x 9.9x 8.2x 6.9x 16.3x 13.3x 10.5% 16.5% 38.5% 39.3% 22.9% 0.7Green Dot Corporation 787.2 642.8 (29.1%) (35.3%) NA NA 1.3x 1.1x 0.9x 6.6x 4.8x 3.7x 13.1x 10.1x 22.8% 20.3% 23.2% 25.1% 24.4% 0.5Global Cash Access Holdings, Inc. 474.2 575.6 62.0% 126.0% (11.2%) (55.0%) 1.0x 1.0x 0.9x 9.3x 7.2x NA 9.0x 8.3x 12.2% 3.9% 13.3% NA 11.3% 0.8Bottomline Technologies Inc. 663.3 544.9 (22.1%) (27.8%) 99.2% 46.2% 2.5x 2.3x NA 15.7x 15.9x 11.6x 21.3x NA 13.0% NA 14.5% NA 17.3% 1.2Net 1 Ueps Technologies Inc. 375.8 393.8 9.1% (4.7%) (41.4%) (65.3%) 1.0x 0.9x NA 3.0x 5.4x NA 9.8x NA 11.1% NA 17.0% NA NA NADigital River Inc. 613.4 266.2 10.7% (49.0%) (54.2%) (63.3%) 0.7x 0.7x 0.6x 4.6x 3.2x 2.7x 13.6x 12.2x 4.0% 6.8% 20.7% 22.7% 16.7% 0.8Cass Information Systems Inc. 418.1 259.0 10.6% 16.0% 29.5% 34.3% 2.3x NA NA 6.4x NA NA 17.5x 16.7x NA NA NA NA NA NAOnline Resources Corp. 78.7 187.7 0.4% (25.7%) (62.0%) (77.9%) 1.2x 1.2x 1.1x 7.5x 6.2x 5.5x 11.0x NA 3.1% 5.6% 18.8% 20.1% 13.3% 0.8Newtek Business Services Inc. 44.5 93.0 7.8% (14.5%) 188.4% (34.7%) 0.7x NA NA 5.7x NA NA NA NA NA NA NA NA NA NABilling Services Group Limited 12.0 37.0 (75.9%) (66.9%) (80.9%) (91.4%) 0.4x NA NA 2.1x NA NA NA NA NA NA NA NA NA NAOfficial Payments Holdings, Inc. 64.9 25.8 (10.6%) (24.1%) (51.4%) (60.2%) 0.8x 0.7x 0.6x NA NA NA NA NA 11.5% 11.4% NA NA 15.0% NATIO Networks Corp. 22.1 19.2 0.0% (7.7%) 2.1% (69.6%) 0.5x 0.4x 0.3x 11.8x 10.4x 3.9x 80.0x NA 5.9% 36.6% 4.3% 8.3% NA NAPayments Median $866.3 $1,197.0 10.6% (4.5%) 53.2% (12.5%) 2.4x 2.3x 2.2x 9.6x 8.4x 7.9x 15.2x 13.3x 11.3% 9.3% 26.9% 27.9% 15.0% 1.0Source: Capital IQ.Note: Sorted by Enterprise Value. 12
  13. 13. Company Trading AnalysisBANK TECHNOLOGY(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioIntuit Inc. $17,429.3 $16,406.3 12.9% 13.6% 108.8% 97.3% 4.0x 3.7x 3.4x 11.5x 10.0x 9.2x 19.3x 17.2x 8.2% 10.0% 37.4% 37.0% 15.1% 1.3Fidelity National Information Services, Inc. 10,046.9 14,567.8 28.2% 9.9% 67.5% (37.2%) 2.5x 2.4x 2.3x 8.7x 8.1x 7.7x 13.4x 11.9x 4.1% 5.0% 29.9% 30.3% 11.5% 1.2Fiserv, Inc. 9,856.8 13,023.8 22.9% 13.3% 55.8% 27.1% 3.0x 2.9x 2.8x 9.8x 9.0x 8.4x 14.0x 12.5x 5.5% 4.2% 31.9% 32.6% 11.7% 1.2Wolters Kluwer NV 4,603.4 7,363.8 (6.2%) (18.5%) 0.0% (44.7%) 1.8x 1.7x 1.6x 7.1x 6.8x 6.6x 8.1x 7.6x 4.3% 2.2% 24.7% 25.1% 5.2% 1.5Fidelity National Financial, Inc. 4,267.5 4,798.1 20.9% 20.4% 38.3% (18.7%) 0.9x 0.9x NA 8.3x 8.2x NA 13.8x NA 2.3% NA NA NA 2.0% 6.9Lender Processing Services, Inc. 2,136.5 3,170.2 67.8% 17.9% (9.2%) NA 1.5x 1.6x 1.5x 6.5x 6.7x 6.7x 10.4x 9.4x (4.6%) 1.7% 23.3% 23.1% 11.0% 0.9Jack Henry & Associates Inc. 3,013.9 3,065.2 2.7% 13.4% 65.4% 34.1% 3.0x 2.9x 2.7x 9.4x 9.0x 8.2x 19.0x NA 6.4% 6.2% 32.4% 33.3% 11.8% 1.6Deluxe Corp. 1,271.7 1,953.0 9.6% (1.0%) 83.8% (38.6%) 1.4x 1.3x 1.3x 5.3x 5.4x 5.3x 7.6x 7.4x 3.2% 1.3% 24.8% 24.8% 6.6% 1.1ACI Worldwide, Inc. 1,757.7 1,923.5 54.4% 30.4% 211.8% 31.3% 2.7x 2.7x 2.5x 14.5x 12.1x 9.9x 26.9x NA (1.4%) 10.9% 22.7% 25.0% 15.0% 1.8Davis + Henderson Corporation 1,012.8 1,360.5 2.8% (11.8%) 41.4% (10.3%) 1.9x 1.8x 1.8x 7.7x 7.5x 7.1x 11.3x 11.4x 3.2% 2.7% 24.6% 25.3% NA NATemenos Group AG 1,111.0 1,246.5 1.6% (38.9%) (15.2%) (46.8%) 2.5x 2.4x 2.3x 8.9x 7.4x 6.8x 17.7x 14.3x 4.1% 8.2% 33.1% 33.2% 17.3% 1.0Computer Services, Inc. 473.6 459.7 13.0% 8.2% 84.0% 90.0% 2.5x NA NA 8.8x NA NA NA NA NA NA NA NA NA NAEllie Mae, Inc. 444.4 414.8 218.6% 211.4% NA NA 6.3x 5.9x 4.5x 40.9x 30.6x 21.8x 40.9x NA 35.6% 31.6% NA 20.5% 32.1% 1.3Online Resources Corp. 78.7 187.7 0.4% (25.7%) (62.0%) (77.9%) 1.2x 1.2x 1.1x 7.5x 6.2x 5.5x 11.0x NA 3.1% 5.6% 18.8% 20.1% 13.3% 0.8Bank Technology Median $1,947.1 $2,509.1 12.9% 11.6% 55.8% (14.5%) 2.5x 2.4x 2.3x 8.7x 8.1x 7.4x 13.8x 11.7x 4.1% 5.3% 24.8% 25.2% 11.7% 1.2INSURANCE TECHNOLOGY(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioVerisk Analytics, Inc. $8,180.4 $9,290.3 22.8% 41.1% NA NA 6.8x 6.2x 5.6x 15.5x 13.7x 12.3x 25.1x 21.9x 14.2% 10.1% 45.0% 45.4% 13.4% 1.9CGI Group, Inc. 6,230.8 7,031.5 27.4% 2.8% 136.7% 104.8% 1.7x 1.6x 1.5x 9.3x 8.3x 7.7x 14.4x 12.7x 3.0% 5.5% 19.5% 20.0% 9.9% 1.5Solera Holdings Inc. 2,903.8 3,625.1 (6.2%) (30.9%) 62.9% NA 4.7x 4.6x 4.3x 10.9x 10.3x 9.6x 15.7x 14.6x 5.9% 5.5% 44.1% 45.1% 13.2% 1.2Guidewire Software, Inc. 1,480.6 1,278.8 NM NA NA NA 5.9x 5.2x 4.3x 48.0x 42.7x 27.6x 97.4x 70.2x 22.4% 20.0% 12.1% 15.5% NA NAEbix Inc. 727.6 740.0 (9.7%) 3.3% 80.4% 346.6% 4.3x 3.9x NA 9.8x NA NA 12.7x NA 12.6% NA NA NA 20.0% 0.6CorVel Corporation 556.9 550.3 (5.2%) 3.6% 101.4% 87.5% 1.3x 1.3x 1.1x 9.5x NA NA 22.0x 16.1x 4.3% 11.0% NA NA NA NACrawford & Company 221.9 415.4 (33.6%) (43.5%) (15.7%) (39.5%) 0.4x 0.4x 0.4x 4.4x 4.9x 4.2x 7.3x 6.0x (7.7%) 1.4% 7.5% 8.6% 12.5% 0.6Insurance Technology Median $1,480.6 $1,278.8 (5.7%) 3.0% 80.4% 96.1% 4.3x 3.9x 2.9x 9.8x 10.3x 9.6x 15.7x 15.3x 5.9% 7.8% 19.5% 20.0% 13.2% 1.2Source: Capital IQ.Note: Sorted by Enterprise Value. 13
  14. 14. Company Trading AnalysisBENEFITS / PAYROLL(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioAutomatic Data Processing, Inc. $27,222.5 $25,546.7 3.1% 3.3% 57.5% 14.8% 2.4x 2.3x 2.1x 10.9x 10.9x 10.0x 19.6x 17.8x 6.8% 8.0% 21.1% 21.4% 10.1% 2.0Intuit Inc. 17,429.3 16,406.3 12.9% 13.6% 108.8% 97.3% 4.0x 3.7x 3.4x 11.5x 10.0x 9.2x 19.3x 17.2x 8.2% 10.0% 37.4% 37.0% 15.1% 1.3Paychex, Inc. 11,389.3 11,073.0 4.3% 1.2% 22.7% (19.7%) 5.0x 4.9x 4.6x 11.6x 11.5x 10.7x 20.5x 19.0x 5.1% 6.1% 42.4% 42.9% 10.1% 2.0Edenred SA 6,239.7 6,186.4 17.5% 5.2% NA NA 4.8x 4.6x 4.2x 12.9x 12.3x 10.9x 23.6x 20.2x 5.0% 9.0% 37.1% 38.6% 16.5% 1.4Sage Group plc 5,426.7 5,237.2 (5.7%) (4.5%) 53.2% 18.3% 2.5x 2.4x 2.3x 8.7x 8.5x 8.0x 13.4x 12.3x 2.8% 4.7% 28.9% 29.3% 4.3% 3.1The Ultimate Software Group, Inc. 2,368.1 2,308.0 36.6% 63.4% 262.1% 207.4% 8.2x 7.0x 5.7x 52.5x 37.2x 27.0x 87.7x 62.9x 23.5% 21.2% 18.7% 21.3% 25.9% 3.4Morneau Shepell Inc. 544.3 765.1 10.2% 14.5% 32.0% (9.1%) 2.0x 1.8x 1.7x 11.2x 9.8x 9.1x 20.7x 17.1x 16.3% 6.6% 18.7% 18.9% NA NAEbix Inc. 727.6 740.0 (9.7%) 3.3% 80.4% 346.6% 4.3x 3.9x NA 9.8x NA NA 12.7x NA 12.6% NA NA NA 20.0% 0.6WageWorks, Inc. 387.6 234.2 67.3% NA NA NA 1.6x 1.4x 1.3x 11.7x 6.4x 5.4x 31.4x NA 26.3% 7.5% 21.5% 23.7% 16.7% 1.9Benefits / Payroll Median $5,833.2 $5,711.8 7.2% 4.3% 57.5% 18.3% 4.1x 3.8x 3.4x 11.4x 10.9x 10.0x 20.1x 17.8x 7.5% 8.0% 28.9% 29.3% 15.1% 2.0MARKETING SERVICES(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioExperian plc $13,821.8 $15,911.8 2.9% 12.4% 97.8% 43.0% 3.5x 3.3x 3.0x 10.6x 9.7x 9.0x 16.5x 14.6x 4.7% 8.6% 34.1% 33.9% 12.0% 1.4Alliance Data Systems Corporation 6,797.9 13,056.3 30.0% 42.6% 226.8% 74.7% 3.9x 3.7x 3.4x 13.3x 11.2x 10.3x 15.7x 13.9x 11.9% 7.9% 32.8% 33.0% 15.4% 1.0Groupon, Inc. 6,864.8 5,708.0 (48.5%) NM NM NM 3.0x 2.4x 1.9x NM 15.8x 8.2x NA 25.7x 51.1% 26.4% 15.0% 22.9% 34.0% NAAimia Inc. 2,302.9 2,626.6 13.5% 1.7% 64.2% (36.2%) 1.2x 1.1x 1.1x 9.5x 7.0x 6.6x 9.8x 9.0x 5.1% 5.7% 16.2% 16.2% NA NABankrate, Inc. 1,838.7 1,967.9 (14.5%) 7.4% NM NM 4.4x 3.7x 3.1x 14.7x 11.9x 9.6x 37.2x 26.3x 28.6% 19.9% 31.1% 32.2% 24.7% 1.5Valassis Communications Inc. 930.0 1,426.9 13.1% (28.6%) 236.7% 26.5% 0.6x 0.7x 0.7x 5.0x 4.6x 4.5x 7.2x 6.4x (2.3%) 0.7% 14.1% 14.6% 11.6% 0.6Acxiom Corporation 1,140.5 1,190.2 23.8% 15.3% 71.1% (42.9%) 1.1x 1.1x 1.0x 4.5x 4.6x 5.3x 23.6x 19.4x (6.2%) 3.3% 22.9% 19.2% 11.2% 2.1QuinStreet, Inc. 409.0 401.8 (1.1%) (29.6%) NA NA 1.1x 1.1x 1.1x 6.2x 5.6x 5.4x 31.4x 25.4x (9.7%) 3.7% 19.8% 20.1% 13.5% 2.3CPP Group Plc 117.4 98.7 (60.6%) (67.8%) NA NA 0.2x 0.2x 0.2x 1.1x 1.4x 1.4x 3.2x 3.0x 0.4% 2.5% 13.2% 13.3% NA NAMarketing Services Median $1,838.7 $1,967.9 2.9% 4.5% 97.8% 26.5% 1.2x 1.1x 1.1x 7.9x 7.0x 6.6x 16.1x 14.6x 4.7% 5.7% 19.8% 20.1% 13.5% 1.4Source: Capital IQ.Note: Sorted by Enterprise Value. 14
  15. 15. Company Trading AnalysisLIQUIDITY VENUES(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioCME Group Inc. $17,820.1 $18,890.2 10.0% (9.6%) (13.0%) (49.8%) 5.9x 6.0x 5.5x 8.5x 8.7x 7.9x 16.2x 14.2x (4.2%) 8.4% 69.0% 70.1% 9.3% 1.7Hong Kong Exchanges & Clearing Limited 15,299.1 13,148.1 (11.4%) (32.6%) (8.9%) (0.5%) 13.2x 13.5x 11.8x 17.3x 18.0x 15.6x 25.7x 22.6x (5.0%) 14.7% 75.1% 75.4% 4.3% 6.0Deutsche Boerse AG 9,937.1 11,109.8 (1.4%) (19.6%) (22.9%) (49.2%) 3.8x 3.9x 3.7x 7.7x 6.8x 6.5x 9.7x 8.7x 0.8% 4.5% 56.7% 57.1% 6.0% 1.6IntercontinentalExchange, Inc. 9,892.4 9,834.3 12.8% 7.1% 21.7% (8.0%) 7.2x 6.9x 6.3x 10.6x 9.8x 8.8x 17.3x 15.4x 7.2% 9.0% 70.8% 72.3% 12.2% 1.4BM&F Bovespa SA 9,755.4 9,050.5 4.6% (5.7%) (13.9%) NA 9.5x 8.7x 7.9x 14.0x 12.4x 11.2x 12.7x 10.9x 8.2% 10.3% 70.2% 70.8% 13.6% 0.9NYSE Euronext, Inc. 6,497.3 8,597.3 (2.0%) (26.3%) (6.5%) (65.3%) 3.2x 3.5x 3.3x 7.8x 7.4x 6.5x 11.5x 9.3x (7.0%) 5.6% 46.9% 50.5% 9.2% 1.3Nasdaq OMX Group Inc. 3,854.5 5,263.5 (7.5%) (13.2%) 9.6% (23.7%) 3.1x 3.2x 3.0x 6.0x 6.2x 5.7x 8.9x 7.7x (1.2%) 5.6% 51.0% 52.2% 8.1% 1.1London Stock Exchange Group plc 4,207.6 5,116.9 26.3% (2.8%) 43.0% (25.9%) 4.0x 3.8x 3.6x 6.8x 6.9x 6.7x 10.3x 10.0x 4.7% 6.7% 55.4% 53.3% 4.0% 2.6Singapore Exchange Ltd. 5,331.2 4,812.5 2.9% (16.8%) (13.0%) (35.6%) 9.3x 9.1x 8.1x 16.3x 14.8x 13.1x 22.2x 19.6x 2.2% 11.9% 61.2% 62.0% 9.9% 2.2ASX Limited 5,377.2 4,720.6 (2.5%) (1.3%) (18.5%) (38.8%) 5.7x 7.1x 6.7x 7.2x 9.3x 8.7x 14.4x 13.6x 2.1% 6.2% 76.5% 77.1% 5.3% 2.7TMX Group Inc. 3,421.6 3,427.3 11.3% 5.9% 37.1% 11.3% 5.2x 5.2x 4.8x 9.0x 9.5x 8.4x 14.4x 12.7x (1.5%) 9.5% 54.7% 56.3% 6.0% 2.4CBOE Holdings, Inc. 2,420.6 2,272.0 7.0% 12.0% NA NA 4.5x 4.5x 4.1x 8.1x 8.1x 7.4x 17.4x 15.1x (0.0%) 8.0% 55.2% 56.3% 13.8% 1.3MarketAxess Holdings Inc. 972.3 839.1 (11.5%) 5.5% 165.3% 48.1% 4.5x 4.3x 3.7x 9.2x 9.1x 7.5x 19.9x 15.4x 7.6% 15.4% 47.3% 49.5% 22.5% 0.9FX Alliance Inc 444.8 388.8 NA NA NA NA 3.2x 3.1x 2.7x 8.4x 7.3x 5.8x 17.2x 14.8x 6.3% 13.7% 42.3% 46.8% 17.0% 1.0Liquidity Venues Median $5,354.2 $5,190.2 2.9% (5.7%) (7.7%) (25.9%) 4.9x 4.8x 4.5x 8.5x 8.9x 7.7x 15.3x 13.9x 1.4% 8.7% 56.0% 56.7% 9.2% 1.5Source: Capital IQ.Note: Sorted by Enterprise Value. 15
  16. 16. Company Trading AnalysisTRADING TECHNOLOGY (USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to Growth Company Value Value (1) YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth Ratio The Charles Schwab Corporation $16,460.3 $16,460.3 14.8% (22.7%) (25.0%) (37.0%) 3.5x 3.4x 3.1x 12.5x 11.6x 10.0x 19.3x 16.4x 3.8% 8.5% 29.1% 31.1% 12.4% 1.6 TD Ameritrade Holding Corporation 9,321.7 9,321.7 8.6% (14.5%) (1.3%) (15.0%) 3.5x 3.4x 3.2x 9.6x 9.7x 8.3x 15.4x 12.5x (2.5%) 8.1% 35.5% 38.2% 11.0% 1.4 ICAP plc 3,363.2 3,363.2 (2.7%) (32.1%) (26.7%) (31.7%) 1.3x 1.3x 1.2x 7.4x 5.9x 5.5x 8.6x 8.0x (0.7%) 1.8% 21.5% 22.6% 4.9% 1.8 E*TRADE Financial Corporation 2,293.9 2,293.9 1.0% (44.4%) (40.4%) (96.4%) 1.6x 1.2x 1.2x 6.4x 5.7x 4.1x 15.0x 13.0x (8.7%) 1.7% 21.5% 29.4% 20.3% 0.7 Knight Capital Group, Inc. 1,065.0 1,065.0 1.0% 6.9% (31.1%) (28.1%) 0.8x 0.8x 0.8x 4.8x 5.1x 4.1x 9.9x 7.4x (6.0%) 8.0% 16.1% 18.4% 9.1% 1.1 FXCM Inc. 885.5 885.5 20.6% 14.5% NA NA 2.1x 2.2x 1.7x 12.1x 9.6x 6.8x 14.4x 9.9x 5.1% 24.1% 22.7% 25.8% 10.9% 1.3 GFI Group Inc. 427.1 427.1 (13.6%) (22.6%) (48.9%) (80.4%) 0.4x 0.4x 0.4x 6.7x 4.0x 3.7x 14.8x 8.7x (4.5%) 9.6% 10.9% 10.7% 5.0% 3.0 INTL FCStone Inc. 370.1 370.1 (17.9%) (21.0%) 22.9% (16.8%) 1.0x 0.8x NA 10.1x NA NA NA NA 11.7% NA NA NA NA NA Investment Technology Group Inc. 357.0 357.0 (14.9%) (34.4%) (54.4%) (78.8%) 0.6x 0.7x 0.6x 8.7x 9.5x 6.5x 16.9x 11.0x (6.1%) 5.2% 7.0% 9.6% 11.0% 1.5 GAIN Capital Holdings, Inc. 174.4 174.4 (25.5%) NA NA NA 1.0x 1.3x 1.1x 4.6x 4.5x 3.6x 24.3x 7.4x (35.6%) 22.8% 30.2% 30.3% 15.0% 1.6 Trading Technology Median $975.3 $975.3 (0.9%) (22.6%) (28.9%) (34.3%) 1.2x 1.2x 1.2x 8.1x 5.9x 5.5x 15.0x 9.9x (3.5%) 8.1% 21.5% 25.8% 11.0% 1.5Source: Capital IQ.Note: Sorted by Enterprise Value.(1) Market Capitalization used in place of Enterprise Value. 16
  17. 17. Company Trading AnalysisINVESTMENT TECHNOLOGY (USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to Growth Company Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth Ratio The Bank of New York Mellon Corporation (1) $26,180.1 $26,180.1 10.2% (15.8%) (23.5%) (47.0%) 1.8x 1.8x 1.7x 7.0x 6.9x 6.3x 9.9x 8.9x (1.2%) 4.3% 25.9% 27.2% 10.2% 1.0 State Street Corp.(1) 21,810.8 21,810.8 10.7% (2.9%) (5.7%) (34.7%) 2.3x 2.3x 2.2x 8.0x 7.9x 7.2x 11.5x 10.0x 0.8% 4.5% 28.5% 29.9% 11.2% 1.0 Charles Schwab Corp.(1) 16,460.3 16,460.3 14.8% (22.7%) (25.0%) (37.0%) 3.5x 3.4x 3.1x 12.5x 11.6x 10.0x 19.3x 16.4x 3.8% 8.5% 29.1% 31.1% 12.4% 1.6 Northern Trust Corporation(1) 11,097.7 11,097.7 16.0% (1.0%) (13.9%) (28.4%) 2.9x 2.8x 2.6x 10.7x 9.8x 8.6x 15.5x 13.5x 4.7% 6.1% 28.5% 30.5% 12.7% 1.2 TD Ameritrade Holding Corporation(1) 9,321.7 9,321.7 8.6% (14.5%) (1.3%) (15.0%) 3.5x 3.4x 3.2x 9.6x 9.7x 8.3x 15.4x 12.5x (2.5%) 8.1% 35.5% 38.2% 11.0% 1.4 Computershare Ltd. 4,239.4 5,495.7 (7.5%) (15.1%) (16.2%) (34.4%) 3.4x 2.9x 2.6x 12.5x 10.6x 9.1x 14.6x 12.3x 12.4% 9.5% 27.3% 29.2% 10.8% 1.4 DST Systems Inc. 2,384.2 3,382.9 19.3% 1.3% 45.1% (31.4%) 1.4x 1.5x 1.5x 9.2x 8.2x 7.7x 13.2x 12.2x 30.2% 0.1% 18.7% 19.7% 10.0% 1.3 SEI Investments Co. 3,491.4 3,120.1 14.6% (13.2%) 10.3% (31.5%) 3.3x 3.2x 2.9x 14.2x 8.2x 7.2x 15.9x 13.5x 4.9% 8.8% 38.7% 40.3% 15.0% 1.1 Broadridge Financial Solutions Inc. 2,656.5 3,002.0 (5.7%) (12.7%) 26.8% 11.2% 1.3x 1.3x 1.2x 7.6x 7.0x 6.2x 13.4x 11.3x 3.9% 4.5% 18.2% 19.7% 13.5% 1.0 SS&C Technologies Holdings, Inc. 1,950.0 1,993.0 38.4% 25.2% NA NA 5.3x 3.5x 3.2x 14.4x 11.0x 9.2x 18.3x 16.6x 52.3% 9.3% 32.1% 35.2% 13.3% 1.4 Advent Software, Inc. 1,373.4 1,280.0 11.3% (4.9%) 63.0% 66.6% 3.8x 3.5x 3.2x 19.6x 11.5x 10.6x 29.7x 25.7x 11.9% 9.7% 30.5% 30.2% 20.0% 1.5 Financial Engines, Inc. 986.8 840.6 (3.9%) (17.4%) NA NA 5.5x 4.6x 3.7x 30.9x 17.2x 13.0x 58.0x 34.8x 26.9% 23.0% 26.8% 28.8% 32.5% 1.8 Fidessa group plc 884.8 774.8 2.4% (21.3%) 33.6% 69.4% 1.8x 1.7x 1.6x 8.8x 8.0x 7.6x 18.7x 17.4x 3.1% 6.2% 21.4% 21.4% 7.0% 2.7 SimCorp A/S 716.2 651.6 15.1% (0.1%) 18.0% (23.6%) 2.6x 2.5x 2.3x 9.8x 10.0x 9.0x 16.5x 14.3x 8.0% 9.3% 25.3% 25.7% NA NA Envestnet, Inc. 386.7 316.2 0.3% (18.0%) NA NA 2.5x 2.0x 1.5x 17.8x 14.7x 6.1x 36.7x 17.4x 27.5% 31.0% 13.7% 25.5% 26.7% 1.4 Linedata Services SA 163.7 161.4 38.5% 6.2% 122.3% (39.0%) 0.9x 0.9x 0.9x 4.2x 3.8x 3.7x 8.8x 8.0x 5.0% 3.8% 23.5% 23.3% 1.3% 6.7 First Derivatives plc 123.3 156.1 (1.8%) (16.4%) 128.3% 70.2% 2.2x 1.9x 1.6x 11.6x 9.6x 7.9x 12.0x 10.0x 19.8% 16.7% 19.5% 20.2% NA NA Investment Technology Median $2,384.2 $3,002.0 10.7% (13.2%) 14.2% (29.9%) 2.6x 2.5x 2.3x 10.7x 9.7x 7.9x 15.5x 13.5x 5.0% 8.5% 26.8% 28.8% 12.4% 1.4Source: Capital IQ.Note: Sorted by Enterprise Value.(1) Market Capitalization used in place of Enterprise Value. 17
  18. 18. Company Trading AnalysisINFORMATION SERVICES(USD in millions) Long- Price/ Capitalization Enterprise Value / Enterprise Value / Revenue EBITDA Term Earnings Equity Enterprise Trading Performance Revenue EBITDA P/E Growth Margin EPS to GrowthCompany Value Value YTD 1 Year 3 Year 5 Year LTM 2012E 2013E LTM 2012E 2013E 2012E 2013E 2012E 2013E 2012E 2013E Growth RatioThomson Reuters Corporation $23,641.7 $30,986.7 6.4% (20.0%) (14.4%) (33.4%) 2.2x 2.4x 2.3x 9.3x 8.6x 8.2x 14.1x 13.0x 1.2% 2.6% 27.7% 28.2% 10.5% 1.3Reed Elsevier plc 9,665.3 22,273.8 (1.4%) (10.7%) 12.1% (31.5%) 2.4x 2.3x 2.3x 7.8x 7.5x 7.2x 10.5x 10.0x 3.4% 2.0% 30.9% 31.5% 5.9% 1.8Experian plc 13,821.8 15,911.8 2.9% 12.4% 97.8% 43.0% 3.5x 3.3x 3.0x 10.6x 9.7x 9.0x 16.5x 14.6x 4.7% 8.6% 34.1% 33.9% 12.0% 1.4The McGraw-Hill Companies, Inc. 12,586.5 12,932.5 0.1% 6.1% 46.9% (33.9%) 2.0x 2.0x 1.9x 7.6x 7.4x 7.0x 13.6x 12.2x 3.1% 5.3% 27.0% 27.2% 11.2% 1.2Verisk Analytics, Inc. 8,180.4 9,290.3 22.8% 41.1% NA NA 6.8x 6.2x 5.6x 15.5x 13.7x 12.3x 25.1x 21.9x 14.2% 10.1% 45.0% 45.4% 13.4% 1.9Moodys Corp. 8,212.8 8,699.5 8.5% (6.3%) 35.8% (41.2%) 3.7x 3.4x 3.2x 8.7x 8.2x 7.6x 13.6x 12.4x 10.9% 6.5% 42.3% 42.5% 14.1% 1.0IHS Inc. 7,087.0 7,666.2 25.0% 28.4% 119.1% 134.2% 5.3x 4.9x 4.5x 19.1x 15.3x 13.0x 27.1x 22.1x 17.5% 10.6% 32.1% 34.3% 18.2% 1.5Wolters Kluwer NV 4,603.4 7,363.8 (6.2%) (18.5%) 0.0% (44.7%) 1.8x 1.7x 1.6x 7.1x 6.8x 6.6x 8.1x 7.6x 4.3% 2.2% 24.7% 25.1% 5.2% 1.5Equifax Inc. 5,609.9 6,481.6 20.3% 32.6% 76.4% 4.9% 3.2x 3.0x 2.8x 9.9x 9.1x 8.5x 16.2x 14.6x 9.7% 7.5% 33.2% 33.3% 12.1% 1.3Informa plc 3,546.0 4,768.0 5.2% (12.9%) 67.3% (31.8%) 2.4x 2.3x 2.3x 8.6x 8.3x 7.9x 9.4x 8.8x 3.3% 3.8% 28.3% 28.7% 7.9% 1.2MSCI Inc. 4,135.0 4,751.6 3.3% (10.3%) 41.3% NA 5.2x 4.9x 4.6x 11.6x 10.9x 9.8x 16.9x 15.0x 6.4% 7.7% 45.4% 47.0% 13.0% 1.3Dun & Bradstreet Corp. 3,406.5 4,135.6 (4.9%) (6.6%) (12.6%) (30.9%) 2.4x 2.4x 2.4x 8.0x 7.3x 6.9x 10.6x 9.9x (3.9%) 2.9% 33.5% 34.6% 9.6% 1.1FactSet Research Systems Inc. 4,174.6 3,932.5 6.5% (9.9%) 84.6% 36.0% 5.0x 4.8x 4.4x 13.3x 12.5x 11.3x 21.0x NA 9.5% 9.1% 38.2% 38.7% 14.5% 1.4CoreLogic, Inc. 1,926.8 2,508.4 41.6% 8.5% NA NA 1.8x 1.7x 1.7x 12.2x 6.5x 6.5x 15.0x 14.7x 4.8% 1.3% 26.5% 26.1% 13.1% 1.2Morningstar Inc. 2,859.3 2,417.2 (2.7%) (6.6%) 38.5% 23.0% 3.8x NA NA 13.4x NA NA NA NA NA NA NA NA NA NANICE Systems Ltd. 2,343.5 2,024.9 7.9% 15.7% 56.4% (5.8%) 2.5x 2.2x 1.9x 15.8x 9.6x 8.4x 14.8x 12.9x 17.8% 11.3% 22.5% 23.1% 20.0% 0.7Bankrate, Inc. 1,838.7 1,967.9 (14.5%) 7.4% NM NM 4.4x 3.7x 3.1x 14.7x 11.9x 9.6x 37.2x 26.3x 28.6% 19.9% 31.1% 32.2% 24.7% 1.5Fair Isaac Corp. 1,449.5 1,770.4 18.0% 38.7% 167.1% 5.4% 2.8x 2.7x 2.6x 9.3x 9.3x 8.8x 17.1x 14.4x 3.3% NA 29.5% 29.8% 20.8% 0.8CoStar Group Inc. 2,095.4 1,544.1 21.7% 37.0% 99.6% 53.6% 5.9x 5.6x 5.1x 27.1x 23.6x 20.5x 59.7x 50.1x 10.0% 10.1% 23.7% 24.7% 21.0% 2.8DealerTrack Holdings, Inc. 1,277.9 1,177.1 10.5% 28.5% 77.1% (18.3%) 3.2x 3.1x 2.7x 15.7x 14.8x 10.3x 28.0x 23.5x 9.7% 12.8% 20.9% 26.6% 15.3% 1.8The Dolan Company 203.1 386.3 (21.0%) (19.9%) (50.2%) NA 1.4x 1.3x 1.2x 8.2x 7.3x 5.3x 9.7x 6.7x (1.2%) 9.0% 18.3% 23.0% 16.4% 0.6Intersections Inc. 280.4 263.0 42.9% (17.4%) 251.4% 58.5% 0.7x 0.8x 0.8x 5.3x NA NA 14.1x 15.8x (3.4%) (3.2%) NA NA 8.0% 1.8Reis, Inc. 102.6 85.1 5.3% (2.5%) 145.0% 5.8% 3.1x NA NA 16.3x NA NA NA NA NA NA NA NA NA NACreditriskmonitor.com Inc. 26.3 17.6 12.2% (33.8%) 47.1% 42.7% 1.7x NA NA 14.3x NA NA NA NA NA NA NA NA NA NAInformation Services Median $3,476.3 $4,034.0 6.4% (4.4%) 56.4% 4.9% 2.9x 2.7x 2.6x 11.1x 9.2x 8.4x 15.0x 14.5x 4.8% 7.6% 30.2% 30.6% 13.1% 1.3Source: Capital IQ.Note: Sorted by Enterprise Value. 18

×