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Robert Koven Leonis Partners 1st Quarter 2018 IT Services Analysis

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LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established technology and technology services companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations

FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal

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Robert Koven Leonis Partners 1st Quarter 2018 IT Services Analysis

  1. 1. LEONIS PARTNERS: 1ST QUARTER 2018 IT SERVICES ANALYSIS A NALY SIS O F I T S ERVIC ES VALUAT IONS & K EY DRIVERS IN PUB LIC AND PRIVAT E M ARK ET S
  2. 2. LEONIS PARTNERS EXPERIENCED IT SERVICES ADVISORS ▪ Leonis provides M&A and Growth Capital advisory services to both high-growth and well-established technology and technology services companies ▪ Leonis core areas of focus: ▪ Sell-side M&A: Represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor ▪ Capital Raises: • Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will partner with management to inject capital and provide expertise to maximize the company’s growth • Minority Equity Raises: Equity investments from growth equity and strategic partners who bring capital and market expertise to bear ▪ Retained Advisory Services: Strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations For more information or inquiries, please contact us at info@leonispartners.com 2 TECHNOLOGY SERVICES TOMBSTONES FIRM OVERVIEW ▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market ▪ Team has executed over 115 M&A, restructuring and capital raising deals with cumulative transaction values over $180 billion ▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 domestic and international strategic acquirers ▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal LEONIS CREDENTIALS & SERVICES Has Been Acquired By Equity Capital Raise Has Acquired Has Been Acquired By Has Been Acquired By Has Acquired Has Been Recapitalized By Debt Capital Raise
  3. 3. LEONIS IT SERVICES INDEX 1Q 2018 INDEX SUMMARY ▪ Leonis’s proprietary IT Services Index is comprised of 34 publicly traded IT Services companies ▪ These 34 companies make fall into four distinct verticals: ‒ IT Consulting Services ‒ Managed Services ‒ Management Consulting ‒ Value-added Resellers (VARs) ▪ The Leonis IT Services Index is an equally-weight index • Over the quarter, the Leonis IT Services Index decreased 1% from its fourth quarter 2017 highs • Year to date, IT Consulting Services and Managed Services multiples have fared the best • Key growth drivers and trends emerging in 2017 and continuing in 2018 are: • Robust private equity interest and strategic M&A driving valuations to multi-decade highs • AWS continuing to prevail in shift to cloud infrastructure • Continuing need for UI/UX talent resulting from corporate digital transformations and mobility needs • ServiceNow prevailing in the IT Service Mgmt. market as companies look for solutions to hybrid cloud and on-prem infrastructure 3 IT SERVICES PERFORMANCE IT SERVICES EBITDA MULTIPLES OVER TIMETHE LEONIS IT SERVICES INDEX Source: Pitchbook, Leonis Proprietary Transaction Database, Federal Reserve Economic Data. Note: Market Data as of 3/31/2018. 10.0x 9.7x 9.8x 10.6x 10.6x 10.6x 10.6x 11.1x 10.7x 9.0x 9.5x 10.0x 10.5x 11.0x 11.5x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Avg. EV/EBITDA Multiple (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Leonis IT Services Index Nasdaq Index
  4. 4. LEONIS IT SERVICES INDEX SUMMARY METRICS 4 KEY VALUATION METRICS OVER TIME Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. KEY METRICS 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV / EBITDA 11.1x 10.8x 10.5x 10.8x 10.5x 10.3x 10.2x 11.4x 11.4x Revenue Growth 12.0% 13.1% 12.7% 10.1% 8.3% 6.2% 5.6% 5.8% 5.8% Gross Margin 33.3% 33.6% 35.0% 32.8% 32.1% 33.2% 34.1% 32.3% 32.3% EBITDA Margin 14.5% 14.4% 13.8% 13.1% 12.7% 12.6% 12.9% 12.6% 13.4% EV / EBITDA 9.4x 9.3x 9.3x 10.2x 10.6x 11.5x 11.1x 11.9x 10.5x Revenue Growth 2.1% 3.6% 4.1% 5.5% 4.6% 3.4% 3.4% 4.1% 4.6% Gross Margin 32.5% 32.4% 32.3% 32.2% 31.7% 31.4% 31.5% 31.7% 31.6% EBITDA Margin 11.0% 11.5% 11.9% 12.0% 11.2% 9.8% 9.5% 9.3% 10.6% EV/ Revenue 4.4x 4.6x 3.8x 4.3x 4.4x 4.7x 4.6x 4.8x 4.7x Revenue Growth 8.2% 7.2% 6.4% 10.5% 11.2% 12.0% 11.3% 11.5% 11.5% Gross Margin 58.0% 58.0% 57.6% 57.6% 58.3% 59.0% 59.9% 59.9% 59.9% EBITDA Margin 26.1% 20.8% 16.2% 15.8% 15.8% 22.1% 27.9% 28.2% 28.8% EV / EBITDA 6.7x 6.7x 7.6x 8.0x 9.7x 10.2x 10.9x 10.4x 9.0x Revenue Growth 4.7% 5.6% 6.4% 7.0% 6.5% 7.2% 7.3% 9.4% 11.2% Gross Margin 21.6% 21.8% 21.4% 21.3% 21.5% 21.2% 15.1% 15.0% 15.0% EBITDA Margin (2.6%) (2.7%) 2.6% 2.4% 4.3% 3.7% 3.2% 2.9% 3.4% Managed Services VARs SECTOR IT Consulting Management Consulting
  5. 5. ▪ When companies are grouped into ranges as shown below, 90% of the change in the valuation is driven by a change in the average gross margin for the bucketed companies ▪ The distribution of EV/Rev multiples is skewed by Managed Service providers but is centered at ~1.5x EV/ Revenue with average gross margins rates centered around 25% - 30% ▪ Regression of bucketed average gross margins exhibits direct correlation with valuation multiples, yielding an R- squared of .90(2), extremely high for financial statistics 5 KEY INDUSTRY KPIS(1) THE IMPORTANCE OF EBITDA IN VALUATIONS RECENT TRENDS AND OBSERVATIONS VALUATIONS ALIGNED TO GROSS MARGIN AND EBITDA ▪ As shown in the graph below, when the Leonis Index as a whole is reviewed, we find a coefficient of determination (“R-squared”) of .82 when regressing companies’ EBITDA margin versus their EV/Rev multiple. This signifies a strong link between rising EBITDA and valuation multiple ▪ A similar analysis for gross margin across the full index produces an R- squared of .60, which is still moderately supportive of a broad conclusion ▪ Interestingly, annual revenue growth compared EV/Revenue produces only a .01 R-squared, which suggests that growth, while important from a total value perspective, does not immediately lead to multiple expansion in IT services businesses at scale ▪ The net take-away is clear: in the IT Services Industry, the level of profitability is a critical determinant of value Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. (1) Excludes Equinix, Limelight Networks & J2 Global. (2) Using a logarithmic regression in order to standardize the distribution of gross margin percentages relative to EV/Rev multiples. EV / REVENUE AS A FUNCTION OF GROSS MARGIN(1) (GM) R² = 0.0087 R² = 0.5958 R² = 0.8171 (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 0.00x 1.00x 2.00x 3.00x 4.00x 5.00x YoY Revenue Growth Gross Margin EBITDA Margin 7 5 6 5 2 6 14.2% 29.4% 30.2% 34.2% 42.2% 37.2% y = 0.1369ln(x) + 0.1623 R² = 0.8956 0% 10% 20% 30% 40% 50% 0 3 6 9 12 15 <0.5x 0.5x-1.0x 1.0x-1.5x 1.5x-2.0x 2.0x-2.5x 2.5x+ MedianGM #ofCompanies EV / Revenue # of Companies Median GM Log. (Median GM)
  6. 6. LEONIS IT SERVICES INDEX COMPANIES 6
  7. 7. 7 KEY OBSERVATIONS RELEVANT TRANSACTIONS IT CONSULTING TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. IT Consulting includes the following company tickers: CTSH, INFY, WIT, TECHM, EPAM, SYNT, TTEC, GLOB, VRTU, ICFI, HURN, PRFT, HCKT, PFSW, EDGW, CTG. IT CONSULTING ▪ Transaction multiples in the IT Consulting landscape continue to remain robust as strategic interest remains strong with growing private equity interest across all size ranges (see Apollo/West Corp. and HIG Capital/NCI transactions) - Transaction multiples in this space are largely driven by gross margin for financial buyers and by the type of talent being acquired for the strategic buyers - Vertically-focused IT Consulting businesses still receive premiums relative to their generalist peers ▪ 1Q 2018 revenue multiples and margins were nearly identical to the previous quarter 11.1x 10.8x 10.5x 10.8x 10.5x 10.3x 10.2x 11.4x 11.4x 14% 14% 14% 13% 13% 13% 13% 13% 13% 33% 34% 35% 33% 32% 33% 34% 32% 32% 10% 15% 20% 25% 30% 35% 40% 9.0x 9.5x 10.0x 10.5x 11.0x 11.5x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/EBITDA EBITDA Margin Gross Margin Date Announced Target Acquirer Deal Size EV / EBITDA Multiple 01/31/18 Xerox Corp. FUJIFILM Holdings $12,044.4 11.28x 11/30/17 Aricent Altran Technologies $2,029.7 14.43x 10/10/17 West Corp. Apollo Global Management $5,128.3 8.33x 08/14/17 NCI H.I.G. Capital $283.0 15.98x Average EV/EBITDA Multiple over last seven years: 12.18x
  8. 8. 8 RELEVANT TRANSACTIONS MANAGED SERVICES TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Managed Services includes the following company tickers: EQIX, AKAM, JCOM, LLNW, INAP. MANAGED SERVICES KEY OBSERVATIONS ▪ Unlike the rest of their IT Service peers, Managed Services Providers (MSPs) continue to trade publicly with an anchor to revenue-based multiples; in the M&A market, MSPs receive valuations based on a triangulation of EBITDA and revenue based valuations - This nuance is driven by the fact that these providers tend to have highly predictable recurring revenue streams and often operate at gross margins meaningfully higher than other IT Service subcategories - In the M&A market, there is a tendency to place a revenue multiple on the recurring revenue streams and an EBITDA- based multiple on the project-based revenue streams, yielding a sum-of-the-parts valuation for businesses that have both recurring and non-recurring revenue 4.4x 4.6x 3.8x 4.3x 4.4x 4.7x 4.6x 4.8x 4.7x 58% 58% 58% 58% 58% 59% 60% 60% 60% 8% 7% 6% 10% 11% 12% 11% 12% 12% 5% 15% 25% 35% 45% 55% 65% 3.0x 3.5x 4.0x 4.5x 5.0x 5.5x 6.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/Rev Gross Margin YoY Growth Date Announced Target Acquirer Deal Size EV / Rev Multiple 01/29/18 SingleHop Internap $132.0 2.77x 12/15/17 Metronode Equinix $791.4 13.31x 10/09/17 Itconic Equinix $259.0 4.13x 01/17/17 CTEK Security CynergisTek $34.6 2.31x Average EV/EBITDA Multiple over last seven years: 2.92x
  9. 9. 9 RELEVANT TRANSACTIONS MANAGEMENT CONSULTING TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. Management Consulting includes the following company tickers: ACN, CRAI, FCN, NCI, RECN. ▪ Management Consulting businesses saw some of the most pronounced appreciation in their valuations in 2017, with the average EV/EBITDA trading multiple rising from 10.2x at the end of 4Q 2016 to 11.9x at the end of 2017. In 1Q 2018, this trend reversed and multiples fell - The broader run-up in valuations has been triggered to some extent by upside earnings surprises for many of the large players in the last 12 months, which slowed in 1Q 2018 - M&A activity has remained less active in this area than in other IT Service subcategories MANAGEMENT CONSULTING KEY OBSERVATIONS 9.4x 9.3x 9.3x 10.2x 10.6x 11.5x 11.1x 11.9x 10.5x 11% 12% 12% 12% 11% 10% 9% 9% 11% 33% 32% 32% 32% 32% 31% 32% 32% 32% 5% 10% 15% 20% 25% 30% 35% 8.0x 8.5x 9.0x 9.5x 10.0x 10.5x 11.0x 11.5x 12.0x 12.5x 13.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/EBITDA EBITDA Margin Gross Margin Date Announced Target Acquirer Deal Size EV / EBITDA Multiple 02/28/17 MediaLink Ascential $207.0 14.79x 11/02/16 Kurt Salmon Accenture $166.4 20.55x 10/31/16 AssetMark Huatai Securities $780.0 12.00x 11/30/15 SRA International Computer Sciences $390.0 9.23x Average EV/EBITDA Multiple over last seven years: 10.33x
  10. 10. 10 RELEVANT TRANSACTIONS VALUE-ADDED RESELLERS (VARS) TRADING & PRECEDENT MULTIPLES Source: Pitchbook and Leonis Proprietary Transaction Database. Note: Market Data as of 3/31/2018. VARs includes the following company tickers: NSIT, PLUS, BBOX, TECD, CDW, ALSN, CNXN, PCMI. VALUE-ADDED RESELLERS (VARS) KEY OBSERVATIONS ▪ Value-Added Resellers (VARs) had seen some of the most pronounced run-up in valuations in the last four to six months ▪ In 1Q 2018, VARs repriced lower and were the laggards of the IT Services ecosystem, losing almost 87% in value ▪ M&A still remained robust in 1Q 2018 as the consolidation wave continued - High stock valuations and record levels of cash have led strategic players to accelerate their consolidation of a fragmented subcategory and, in turn, these acquisitions have driven valuation multiples up meaningfully to all-time highs - Private equity players have also driven up multiples as they seek to find platforms and bolt-on acquisitions to execute large-scale roll-up strategies 6.7x 6.7x 7.6x 8.0x 9.7x 10.2x 10.9x 10.4x 9.0x 1% 1% 3% 3% 4% 3% 3% 3% 3% 15% 15% 15% 15% 15% 15% 15% 15% 15% 0% 2% 4% 6% 8% 10% 12% 14% 16% 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x 11.0x 12.0x 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 EV/EBITDA EBITDA Margin Gross Margin Date Announced Target Acquirer Deal Size EV / EBITDA Multiple 03/28/18 Polycom Plantronics $1,986.6 14.57x 09/29/17 OnX Cincinnati Bell $201.0 6.93x 02/27/17 Avnet Tech Tech Data $2,593.1 8.20x 01/06/17 Datalink Insight Enterprises $267.9 11.13x Average EV/EBITDA Multiple over last seven years: 7.86x
  11. 11. APPENDIX 11 I. IT SERVICES INDEX TRADING INFORMATION
  12. 12. TRADING METRICS – IT SERVICES 12 Source: Pitchbook. Note: Market Data as of 3/31/2018. IT Consulting (USD millions, except per share date) Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV/EBITDA P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG Cognizant Technology Solutions $80.50 $47,338.1 (0.4x) 2.7x 2.4x 12.5x 10.9x 31.8x 17.4x 1.8x Infosys $17.85 $37,830.9 (1.0x) 3.0x 2.7x 11.3x 10.5x 19.0x 16.5x 2.7x Wipro $5.16 $19,502.7 0.8x 1.9x 1.8x 9.4x 9.0x 19.9x 17.1x 5.4x Tech Mahindra $9.82 $9,614.8 (0.3x) 1.7x 1.6x 10.5x 10.1x 20.8x 15.6x 1.7x EPAM Systems $114.52 $6,074.1 (2.7x) 3.0x 2.5x 17.2x 14.0x NM 27.5x 1.1x Syntel $25.53 $2,135.8 1.0x 2.5x 2.5x 10.2x 9.8x 12.8x 13.2x NM Globant $51.54 $1,671.0 (0.5x) 3.3x 2.7x 19.2x 15.8x NM 33.6x 1.3x Virtusa $48.46 $1,444.1 (1.4x) 1.1x 1.0x 14.3x 11.3x NM 36.6x 1.8x TTEC $30.70 $1,408.4 1.5x 1.1x 1.1x 8.0x 7.7x NM 15.7x 1.0x ICF $58.45 $1,203.9 1.7x 1.1x 1.1x 11.4x 10.7x 17.9x 15.8x 4.2x Huron Consulting Group $38.10 $854.1 3.1x 1.6x 1.5x 13.0x 11.8x NM 25.2x NM Perficient $22.92 $811.9 0.9x 1.8x 1.7x 11.1x 10.0x NM 26.5x NM The Hackett Group $16.06 $469.7 0.0x 1.6x 1.5x 9.3x 8.6x 18.9x 16.9x NM PFSweb $8.74 $166.3 1.8x 0.6x 0.6x 7.9x 6.8x NM 31.2x NM Computer Task Group $8.19 $125.2 (1.1x) 0.3x 0.3x 10.0x 7.9x NM 20.2x NM Edgewater Technology $5.55 $79.6 NM 0.6x 0.5x 16.9x 8.2x NM NM NA Average $8,170.7 0.2x 1.7x 1.6x 12.0x 10.2x 20.2x 21.9x 2.3x Median $1,426.2 0.0x 1.6x 1.6x 11.2x 10.1x 19.0x 17.4x 1.8x
  13. 13. TRADING METRICS – IT SERVICES (CONTINUED) 13 Source: Pitchbook. Note: Market Data as of 3/31/2018. Management Consulting (USD millions, except per share date) Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV/EBITDA P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG Accenture $153.50 $98,225.0 (0.6x) 2.4x 2.2x 13.9x 12.9x 28.2x 21.1x 2.2x FTI Consulting $48.41 $1,812.3 1.1x 1.1x 1.0x 9.4x 9.0x 17.6x 17.4x NM Navigant Consulting $19.24 $906.8 1.0x 1.1x 1.0x 8.2x 7.7x 12.4x 13.7x NM Resources Connection $16.20 $498.0 (0.2x) 0.7x 0.7x 10.0x 8.6x 28.9x 16.8x NM Charles River Associates $52.29 $454.1 (2.2x) 1.0x 1.0x 8.9x 6.1x NM 21.2x 1.5x Average $20,379.3 (0.2x) 1.3x 1.2x 10.1x 8.9x 21.8x 18.0x 1.9x Median $906.8 (0.2x) 1.1x 1.0x 9.4x 8.6x 22.9x 17.4x 1.9x Managed Services (USD millions, except per share date) Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV/EBITDA P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG Equinix $418.14 $32,767.9 4.6x 8.2x 7.4x 17.3x 15.2x NM NM NA Akamai Technologies $70.98 $12,291.6 (0.1x) 4.5x 4.2x 12.3x 10.9x NM 29.7x 4.3x j2 Global $78.92 $3,873.9 1.9x 3.7x 3.5x 9.2x 8.3x 27.9x 19.6x 0.7x Limelight Networks $4.11 $455.5 (2.7x) 2.0x 1.9x 12.2x 9.6x NM NM NA Internap Network Services $11.00 $220.7 6.5x 2.3x 2.2x 6.7x 6.2x NM NM NA Average $9,921.9 2.0x 4.2x 3.8x 11.5x 10.0x 27.9x 24.6x 2.5x Median $3,873.9 1.9x 3.7x 3.5x 12.2x 9.6x 27.9x 24.6x 2.5x
  14. 14. TRADING METRICS – IT SERVICES (CONTINUED) 14 VARs (USD millions, except per share date) Net Debt / Share Price Market (Cash) /LTM EV/Revenue EV/EBITDA P/E Company 03/31/2018 Cap EBITDA CY2018E CY2019E CY2018E CY2019E CY2018E CY2019E PEG CDW $70.31 $11,118.5 2.7x 0.9x 0.9x 11.7x 11.0x 21.2x 17.1x 2.0x Tech Data $85.13 $3,017.6 1.1x 0.1x 0.1x 4.9x 4.8x 27.9x 10.0x 0.2x Also Holding $131.52 $1,653.6 1.5x 0.2x 0.2x 8.6x 8.1x 16.2x 11.9x 0.9x Insight Enterprises $34.93 $1,226.8 2.2x 0.3x 0.2x 6.6x 6.1x 14.0x 8.1x 0.4x ePlus $77.70 $1,074.0 0.6x 0.8x 0.7x 10.8x 10.6x 21.6x 15.4x 1.7x PC Connection $25.00 $714.3 (0.6x) 0.2x 0.2x 6.7x 6.0x 12.3x 9.6x 1.2x PCM $8.30 $100.2 8.3x 0.1x 0.1x 6.5x 5.9x 34.6x 4.3x NM Black Box $2.00 $30.3 12.9x 0.2x 0.2x 8.7x 7.7x NM NM NA Average $2,366.9 3.6x 0.3x 0.3x 8.0x 7.5x 21.1x 10.9x 1.1x Median $1,150.4 1.9x 0.2x 0.2x 7.6x 6.9x 21.2x 10.0x 1.0x Source: Pitchbook. Note: Market Data as of 3/31/2018.
  15. 15. OPERATING STATISTICS – IT SERVICES 15 Source: Pitchbook. Note: Market Data as of 3/31/2018. IT Consulting (USD millions, except per share date) Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross EBITDA Cognizant Technology Solutions $47,338.1 $1,925.0 $873.0 $43,155.1 1.8% $14,810.0 9.8% 13.0% 38.2% 21.3% Infosys $37,830.9 $3,226.0 $0.0 $34,215.9 0.0% $10,703.0 6.1% 7.4% 36.3% 26.2% Wipro $19,502.7 $815.3 $2,066.0 $17,074.8 9.6% $8,398.3 3.2% 3.3% 29.0% 20.7% Tech Mahindra $9,614.8 $432.6 $242.2 $8,536.2 2.5% $4,638.3 9.2% 9.5% 32.9% 16.0% EPAM Systems $6,074.1 $582.6 $25.0 $5,516.6 0.4% $1,450.4 25.0% 25.7% 36.5% 17.7% Syntel $2,135.8 $96.0 $358.7 $2,372.0 14.4% $923.8 (4.4%) 0.5% 38.0% 25.1% Globant $1,671.0 $35.3 $10.6 $1,646.3 0.6% $413.4 25.4% 26.4% 34.2% 17.0% Virtusa $1,444.1 $226.7 $130.4 $1,347.8 8.3% $965.3 20.0% 27.7% 28.7% 7.9% TTEC $1,408.4 $74.4 $344.0 $1,684.9 19.6% $1,477.4 15.8% 6.0% 24.9% 13.8% ICF $1,203.9 $11.8 $206.3 $1,398.3 14.6% $1,229.2 3.7% 5.4% 37.2% 9.7% Huron Consulting Group $854.1 $16.9 $342.5 $1,179.7 28.6% $732.6 1.2% 4.8% 36.4% 12.2% Perficient $811.9 $6.3 $55.0 $860.6 6.3% $472.9 (0.4%) 2.0% 34.2% 16.0% The Hackett Group $469.7 $17.5 $19.0 $471.2 3.9% $263.3 (0.9%) 6.5% 36.8% 17.2% PFSweb $166.3 $19.1 $47.3 $194.5 22.2% $274.2 (2.3%) 9.8% 29.4% 7.5% Computer Task Group $125.2 $11.2 $4.4 $118.5 3.4% $301.2 (7.3%) (8.5%) 18.6% 3.4% Edgewater Technology $79.6 $15.4 $5.0 $69.2 5.9% $106.2 (11.7%) (0.4%) 37.4% 3.5% Average $469.5 $295.6 $7,490.1 8.9% $2,947.5 5.8% 8.7% 33.0% 14.7% Median $54.9 $92.7 $1,522.3 6.1% $944.6 3.4% 6.2% 35.3% 16.0%
  16. 16. 16 OPERATING STATISTICS – IT SERVICES (CONTINUED) Source: Pitchbook. Note: Market Data as of 3/31/2018. Management Consulting (USD millions, except per share date) Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross EBITDA Accenture $98,225.0 $3,595.1 $28.8 $94,658.8 0.0% $37,125.7 9.6% 6.1% 31.5% 17.1% FTI Consulting $1,799.2 $190.0 $396.3 $2,005.6 18.0% $1,807.7 (0.1%) 1.0% 32.8% 11.6% Navigant Consulting $906.8 $8.4 $132.9 $1,031.3 12.8% $939.6 (0.2%) 6.3% 71.5% 13.0% Resources Connection $498.0 $56.3 $48.0 $489.7 8.8% $619.0 0.0% 0.3% 36.1% 7.2% Charles River Associates $454.1 $54.0 $0.0 $400.1 0.0% $370.1 13.9% 6.5% 30.1% 11.4% Average $780.8 $121.2 $19,717.1 7.9% $8,172.4 4.6% 4.0% 40.4% 12.1% Median $56.3 $48.0 $1,031.3 8.8% $939.6 0.0% 6.1% 32.8% 11.6% Managed Services (USD millions, except per share date) Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross EBITDA Equinix $32,767.9 $1,412.5 $10,080.4 $41,435.8 23.5% $4,368.4 20.9% 21.4% 49.8% 47.7% Akamai Technologies $12,291.6 $711.9 $662.9 $12,242.6 5.1% $2,503.0 7.0% 8.4% 65.0% 37.0% j2 Global $3,873.9 $237.7 $1,001.9 $4,524.9 20.5% $1,117.8 27.9% 23.1% 84.6% 40.2% Limelight Networks $455.5 $49.3 $0.0 $406.2 0.0% $184.4 9.6% 4.3% 57.4% 16.8% Internap Network Services $220.7 $14.6 $529.2 $739.3 70.6% $280.7 (5.9%) (5.7%) 53.0% 34.2% Average $485.2 $2,454.9 $11,869.8 24.0% $1,690.9 11.9% 10.3% 62.0% 35.2% Median $237.7 $662.9 $4,524.9 20.5% $1,117.8 9.6% 8.4% 57.4% 37.0%
  17. 17. 17 OPERATING STATISTICS – IT SERVICES (CONTINUED) Source: Pitchbook. Note: Market Data as of 3/31/2018. VARs (USD millions, except per share date) Market Enterprise Debt / LTM Revenue Growth 2018E Margin (%) Company Cap Cash Debt Value Total Cap Revenue Y-o-Y 3-yr CAGR Gross EBITDA CDW $11,118.5 $144.2 $3,235.5 $14,209.8 22.5% $15,191.5 8.7% 8.0% 16.1% 7.8% Tech Data $3,017.6 $955.6 $1,637.9 $3,699.9 35.2% $36,775.0 40.2% 9.9% 5.8% 2.1% Also Holding $1,653.6 $288.0 $584.7 $1,950.3 26.1% $10,868.8 13.5% 1.5% 5.6% 2.0% Insight Enterprises $1,226.8 $105.8 $632.8 $1,753.8 34.0% $6,703.6 22.2% 8.0% 13.7% 3.9% ePlus $1,074.0 $76.1 $139.3 $1,137.2 11.5% $1,413.3 9.1% 6.7% 22.5% 7.1% PC Connection $714.3 $50.0 $0.0 $664.3 0.0% $2,911.9 8.1% 5.7% 13.1% 3.3% PCM $100.2 $9.1 $252.0 $341.2 71.5% $2,193.4 (2.5%) 17.4% 14.8% 2.3% Black Box $30.3 $18.4 $147.5 $154.7 83.0% $788.8 (9.5%) (7.2%) 27.9% 2.1% Average $205.9 $828.7 $2,988.9 35.5% $9,605.8 11.2% 6.3% 15.0% 3.8% Median $91.0 $418.4 $1,445.5 30.1% $4,807.8 8.9% 7.3% 14.3% 2.8%

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