In a world of blurring lines and free-flowing data, the need for security technology is more keenly felt than ever. High profile breaches at companies like Target, JP Morgan and Sony – with more announced seemingly weekly – are regular reminders of the threats to data and digital assets. This, in turn, is driving high valuations and significant deal flow for innovative security technology firms. This Market Spotlight webcast will examine the specific technologies receiving the most interest, with perspectives from analysts, bankers, buyers, investors, and CEOs.

2. Jon Scott
SeniorVice President
Jon joined Corum in 2010 out of their Seattle headquarters. 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.

3. Agenda
• Welcome
• Jon Scott, SeniorVP – Corum Group
• M&A in Security Sector
• Aaron King,Analyst – Corum Group
• MarketTrends
• Jon Scott
• Seller Discussion
• Anirban Banerjee, Founder
StopTheHacker (acquired by CloudFlare)
• Q&A

4. Jon Scott
SeniorVice President
Jon joined Corum in 2010 out of their Seattle headquarters. 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.

5. Aaron King
Analyst
Aaron joined Corum Group in 2015 as a research analyst. Previously he worked as a
writer, editor, and consultant at a software startup. Aaron graduated from Reed College
with a degree in Economics, specializing in Game Theory.

6. 2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/SEV/EBITDA
May-
14
Jun-
14
Jul-
14
Aug-
14
Sep-
14
Oct-
14
Nov-
14
Dec-
14
Jan-
15
Feb-
15
Mar-
15
Apr-
15
May-
15
EV/EBITDA 14.20 14.61 15.50 16.48 16.10 16.22 16.96 17.03 15.71 15.84 16.08 16.16 14.63
EV/S 3.41 3.89 4.07 4.27 4.37 4.73 4.34 4.16 4.12 4.03 4.23 3.88 4.05
Infrastructure Market Valuations
IT Services Management
Network Management
Storage & Hosting
Endpoint
Security
Other Infrastructure
Segments

7. 2.00
3.00
4.00
5.00
6.00
7.00
8.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
EV/SEV/EBITDA
May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15
EV/EBITDA 14.24 14.73 14.90 16.02 15.32 16.22 16.96 17.26 16.51 15.86 15.15 16.23 15.89
EV/S 5.64 6.01 5.30 5.36 5.83 6.55 6.82 6.28 6.16 6.58 6.85 6.95 7.03
Security Public Peer Valuations

8. 0
5
10
15
20
25
30
35
$0
$1,000
$2,000
$3,000
$4,000
$5,000
Q1
2012
Q2
2012
Q3
2012
Q4
2012
Q1
2013
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
YTD
Security Technology M&A Activity 2012-2015
Total Disclosed Deal Value Total Deal Count
Millions

9. Sold to
Target: BeeWare
Acquirer: DenyAll
Date Announced: May 2014
Transaction Value: Undisclosed
—Web application security, payments,
and payment card data for business

10. $0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Top Total Security Spenders 2012-Present
Millions

11. Sold to
Target: Sourcefire
Acquirer: Cisco
Date Announced: July 2013
Transaction Value: $2.7B
—Intrusion detection / prevention SaaS,
anti-malware software

12. Sold to
Target: Websense
Acquirer: Raytheon
Date Announced: Feb 2015
Transaction Value: $1.3B
—Defense, aerospace, missile and
intelligence systems for defense and
government

13. 4
5
3
Top Buyers by Deal Count (2012 – Present)

14. Target: Blue Coat
Acquirer: Bain Capital
Date Announced: March 2015
Transaction Value: $2.4B
—Enterprise cybersecurity, web traffic
management, mobile security, and SaaS.
Previously owned by Thoma Bravo.
Sold to

15. Encryption
Growth in Exits by Segment (2013-2014)
Penetration Testing Security Management
Mobile Security
Identity & Access
Management
Storage Security
Anti-Malware
Premises Network
Security
Transaction Security

16. Sold to
Target: Codenomicon
Acquirer: Synopsys
Date Announced: April 2015
Transaction Value: Undisclosed
—Security and vulnerability testing
software and SaaS, performance
management.
Sold to
Target: Quotium
Acquirer: Synopsys
Date Announced: May 2015
Transaction Value: Undisclosed
—Interactive application security testing
(IAST)

17. Encryption
Growth in Exits by Segment (2013-2014)
Penetration Testing Security Management
Mobile Security
Identity & Access
Management
Storage Security
Anti-Malware
Premises Network
Security
Transaction Security

18. Sold to
Target: Metafor Software
Acquirer: Splunk Inc.
Date Announced: June 2015
Transaction Value: Undisclosed
—Cybersecurity anomaly detection and
predictive analytics.

19. Sold to
Target: nsense
Acquirer: F-Secure
Date Announced: June 2015
Transaction Value: $16,481,000
—Cyber protection and vulnerability
assessment for large institutions

20. Geographic Breakdown
Europe Asia / Pacific
Africa and
Middle East
Latin America
and Caribbean
US and
Canada
2013 2014 2015 YTD

21. Sold to
Target: IdMLogic
Acquirer: CA Technologies
Date Announced: June 2015
Transaction Value: $25M
—Identity and Access Management
(IAM) for businesses, and BYOD/mobile
IAM solutions.

22. Sold to
Target: CyActive
Acquirer: Paypal Inc. [eBay]
Date Announced: March 2015
Transaction Value: $60M
—Predictive malware detection and
prevention cybersecurity for business

23. Geographic Breakdown
Europe Asia / Pacific
Africa and
Middle East
Latin America
and Caribbean
US and
Canada
2013 2014 2015 YTD

24. Sold to
Target: Vulnr
Acquirer: ZeroFOX
Date Announced: January 2015
Transaction Value: Undisclosed
—Stealth-mode mobile vulnerability
detection software

25. Sold to
Target: NumberCop
Acquirer: WhitePages, Inc.
Date Announced: June 2015
Transaction Value: Undisclosed
—Anti-spam caller ID mobile app to
identify and block spam, phishing, and
other high-risk calls and text messages

26. Jon Scott
SeniorVice President
Jon joined Corum in 2010 out of their Seattle headquarters. 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.

27. Cloud Security

28. Automated Incident Response

29. Advanced PersistentThreats

30. Security Provider Consortiums

31. More Small andVery Focused
Start-Ups

32. Jon Scott
SeniorVice President
Jon joined Corum in 2010 out of their Seattle headquarters. 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.

33. Anirban Banerjee
Dr. Anirban Banerjee is the lead Primary Investigator, the VP of Research and Development, and co-founder of StopTheHacker
Inc. He graduated with his Ph.D. in Computer Science, from the University of California at Riverside in 2008. Dr. Banerjee’s
thesis research includes well over twenty published papers in the areas of internet security, measurements and web
technology.
Over the last few years, he has garnered great visibility and respect among the web security community, rapidly advancing as a
recognized authority in the fight against underground cyber crime. Dr. Banerjee’s profound expertise in Artificial Intelligence
and web security along with his exuberant passion for innovative product development, propel StopTheHacker into the much
coveted position as one of the tech industry’s hottest new startups.
Co-Founder, StopTheHacker

34. Traits of a Successful Security Acquisition
1. Chasing a RealVulnerability
2. Developed an ExpandableArchitecture
3. Deep Subject Matter Expertise and Passion
4. Customer References
5. Began with an End in Mind

35. Q&A
We welcome your questions!
• Use Q&A window on right side
• Submit to queue at any time
• Ask “all panelists” – see “ask” option above text-entry
box

36. Contact Us
For further information or copies of today’s
presentation:
Visit www.wfs.com
-or-
Email jons@corumgroup.com
36