2

Table of Contents

I. Our Focus & Approach

II. Relevant Industry Overviews

3

I. Our Focus & Approach

4

Falvey Partners Snapshot

FOCUS SELECT, RELEVANT TRANSACTION EXPERIENCE

December 2011

Has acquired

July 2012

Has been

acquired by

September 2011

Series D

Convertible

Preferred Stock

led by

September 2012

Has been

acquired by

A portfolio company of

July 2011

Has been acquired

by a portfolio

company of

April 2011

Has been

acquired by

July 2011

Has been

acquired by

February 2011

Growth equity

investment from

November 2010

Has received an

investment from


October 2010

PGI Notify and Send

platforms acquired by

August 2010

Series C

Convertible

Preferred Stock

Led by

SERVICES

Sell-side or buy-side M&A

Growth capital raising

Board and corporate advisory

SECTOR

Software / SaaS

Tech-enabled business services

IT services

Internet / digital media

COMPANY TYPE

$50M - $250M in enterprise value

Growing, with established scale

Profitable or near-term path to profitability

We are an entrepreneurial investment banking firm focused exclusively on capital

raising and M&A for leading software companies

Founded in 2012 by Peter Falvey and key members of the Morgan Keegan / Revolution Partners team

Falvey Partners professionals have closed dozens of software transactions representing billions of

dollars in transaction value

August 2004

Has been

recapitalized by

Sell-Side Advisor

Enterprise

Mobility Software

Provider

Project

Swift

Placement Agent

Web Infrastructure

Software Provider

Project

Anthem

Sell-Side Advisor

Project

Port

Content

Management

Software Provider

Placement Agent

Project

Leaf

Cloud Accounting

Software Provider

December 2012

Strategic Minority

Investment from

July 2011

Strategic minority

investment from

5

We are Experts in Our Focus Sectors

We are thematic in our sector coverage, “placing our bet” on only a few sectors where

we are seen as thought leaders and maintain deep, extensive relationships

SOURCE OF OUR INDUSTRY EXPERTISE

Approach

Relevant Transactions: We have completed numerous, highly relevant deals in our

sectors and take-on impactful transactions that reinforce our reputation and leadership

with industry constituents

Intellectual Property: We create detailed, informed thought pieces on each sector that

we use as the basis of our interaction with companies, buyers, investors and analysts

Extensive Relationships: We invest significant time identifying leading companies,

forming relationships early on and acting as a resource throughout the companies’

lifecycle

Meaningful Conversations with Buyers: We frequently have meetings with strategics

to do deep dives on our focus sectors, alerting them to trends and companies to watch,

allowing us to be up-to-speed on acquirers’ thoughts and action plans in each sector

6

Software covering all

aspects of managing

customer experience,

customer intelligence

and internal marketing

processes

Applications for

developing, deploying

and managing all

aspects of cloud

software

Software for K-12

learning and corporate

training including

learning management

systems, learning

content creation and

distribution

Applications covering

the internal and external

social layer for

enterprise collaboration,

project management

and social networks

Our Focus Sectors

FALVEY PARTNERS’ FOCUS

DIGITAL MARKETING CLOUD INFRASTRUCTURE BI / ANALYTICS HUMAN CAPITAL MGMT.

E-DISCOVERY MOBILE E-LEARNING ENTERPRISE SOCIAL

Software and services

covering all aspects of

the electronic discovery

reference model

including information

management, data

collection / preservation

and review and

analysis

Consulting services to

help enterprises

integrate their

disparate legacy

systems with cloud

applications

Applications for

managing, extracting

and analyzing

business data

Software covering all

aspects of enterprise

mobility enablement

including MDM, MAM,

mobile security and

mobile application

development

7

Our Past Deal Experience

SELECT TRANSACTION EXPERIENCE BY FALVEY PARTNERS PROFESSIONALS

April 2011

Has been

acquired by

July 2011

Has been

acquired by

July 2011

Has been acquired

by a portfolio

company of

February 2011

Growth equity

investment from

November 2010

Has received an

investment from


October 2010

PGI Notify and Send

platforms acquired by

July 2011

Has been

acquired by

March 2011

Has divested

its diagnostic

solutions unit

August 2010

Two divisions have been

acquired by a portfolio

company of

April 2010

Has been

acquired by

October 2009

Has been

acquired by

February 2010

Strategic minority

investment by

July 2009

Has been

acquired by a

portfolio

company of

June 2009

Has been

acquired by

August 2010

Series C

Convertible

Preferred Stock

Led by

February 2009

Series D

convertible

preferred stock

July 2006

Has been

acquired by

June 2006

Has been

acquired by

August 2006

Has been

acquired by

August 2006

Has been

acquired by

October 2007

Has been

acquired by

December 2007

Has been

acquired by

December 2007

Has been

acquired by

May 2008

Series D

convertible

preferred stock

December 2011

Has acquired

July 2012

Has been

acquired by

September 2011

Series D

Convertible

Preferred Stock

Led by

September 2012

Has been

acquired by


http://ecopy.com/index.asp

8

Our Approach to Creating Intellectual Property in Sectors

We have invested significant time and resources to establish thought leadership and

mindshare with companies, buyers and investors in our chosen sectors

Thought

Leadership • Extensive research

• Creation of thought pieces and

market maps

• Reference existing knowledge

and experience from prior

deals

• Distribute thought pieces to

relevant companies

• Form relationships early,

investing significant time as a

resource and trusted advisor

• Place our “bet” on a select few

• Distribute thought pieces to the

relevant consolidators

• Deep dives on the sector with

corporate development teams

• Facilitate introductions to

companies as appropriate

• Be seen as experts and be the

de facto choice when the time

is right

• Refine analysis and extend

leadership from conversations

and completed deals

Meet with

Leading

Companies

Conversations

with Buyers &

Investors

Relevant

Transactions

9

Regular Interaction with Leading Strategic Buyers

We are constantly interacting with leading strategic buyers through deals we have in

market and in-depth discussions on sectors

SELECT CONVERSATIONS WITH STRATEGICS IN RECENT QUARTERS

10

Examples of Thought Leadership

Several leading prospects – continued

dialogue / meetings with management

Introductions made for prospects to

relevant companies

Several leading prospects – continued

dialogue / meetings with management

Industry analysis sent to Gartner

Introduction made to companies

Thought

Leadership

Establish

Relationships

with Leading

Companies

Conversations

with Buyers

Personalization Backend-as-a-Service

Relevant

Transactions

11

II. Relevant Industry Overviews

12

II. Focus Areas and Relevant Industry Overviews

Digital Marketing / Personalization

13

Our Thoughts on the Market

CMO influence is increasing: CMOs are wielding increasing purchasing power and

influence over marketing software solutions

Marketing is increasing in complexity: The number of technologies in the marketing

stack has increased as CMOs are employing a growing number of best-of-breed solutions

− Growing number of digital touch points need to be managed – areas like mobile,

social, integrated analytics, and personalization make the creation of a marketing

solution much more challenging

Emergence of platforms: Platform vendors pursuing full solution suites through organic

development and inorganic acquisitions

M&A Activity Remains Strong: There has been a recent flurry of acquisitions, with the

consolidators paying healthy multiples to continue assembling their portfolios

− Recent high profile acquisitions include Oracle acquiring Responsys, Adobe acquiring

Neolane, SAP acquiring Hybris and Salesforce acquiring ExactTarget

We believe that M&A and investment activity seen in 2013 will accelerate as the

confluence of several trends will shape the digital marketing landscape

14

Problems with Today’s Approach

Today, most personalization is done through extensive integration between

engagement applications and sources of marketing data

CRM

Content

ManagementE-Commerce

Automation

E-mail

Marketing

Display

AdsAnalytics

Web /

Mobile

Social

Current

Multiple Integration Points

No System of Record

Current Approach • Extensive integration is not a sustainable way

forward as the complexity of the marketing stack

grows:

- More Data: The amount of data being tracked

(clicks, time spent on site, etc.) and the amount

generated is anticipated to increase 20x in the

next 5 years

- More Systems: Today, an enterprise runs, on

average, 30 marketing systems. This number has

doubled in the last 10 years

- More Silos: Valuable data is often siloed in each

application and unifying, cleansing and enriching

the data is necessary to take action

- More Cost: With stagnant budgets, more systems

and more data, extensive integration for each

incremental system is not sustainable

15

Many Point Solutions and Few Suite Providers

Siz

e

Larg

er

Sm

all

er

Point Solution Providers

Suites

Customer Experience / Touch Customer Intelligence Resource Mgmt / Workflow

External Internal

16

Personalization Market Landscape

Testing

Da

ta A

cti

on

D

ata

Ma

na

ge

men

t

Personalization

Data Management & Enrichment Tag Management

eCommerce Optimization

Customer

Engagement

Data

Management

and Action

Marketing

Infrastructure

Testing Personalization eCommerce Optimization

Tag Management Data Management & Enrichment

We view the following categories as the major components in an enterprise’s

marketing data stack

17

Acquisition Portfolios of the Major Acquirers

Examining acquisition activity of the major acquirers highlights the trend towards

acquiring infrastructure and engagement assets

Infrastructure Applications Customer Engagement Data Management & Action

CRM Automation WCM eCommerce E-mail Social Web Testing Personalization

eCommerce

Optimization

Data

Management

Tag

Management

in 2013 for

$600M

in 2010 for

$240M

in 2013 for

$600M

in 2011 for

$400M

in 2010 for

$240M

in 2009 for

$1.8B

in 2011 for

$58M

in 2010 for

$480M

in 2010 for

$1.4B

in 2010 for

~$600M

in 2011 for

$1.5B

in 2012 for

$870M in 2011 in 2010 for $1B

in 2013 for

$1.5B

in 2012 for

$300M in 2011

in 2014 for

$400M

via ExactTarget

in 2013 for

$2.2B

in 2012 for

$689M via ExactTarget

in 2013 for

$1.3B

Acquirer

18

Recent M&A Activity

The consolidators are paying attractive prices for the emergent leaders in digital

marketing to fill in product offering holes

Source: Company Press Releases, SEC Filings, Wall Street Research, CapitalIQ, Pitchbook

Target Acquirer Date EV Revenue / EV

Dec 2013 $1,500M 7.7x

Aug 2013 $21M N/A

Aug 2013 $1,500M 13.6x

Jul 2013 $600M 10.5x

Jul 2013 $316 2.x

Jun 2013 N/A N/A

Jun 2013 2,250M 7.1x

Jan 2013 N/A N/A

Dec 2012 N/A N/A

Dec 2012 $870M 9.7x

Oct 2012 $95.5M 8.7x

Oct 2012 $21M N/A

Jul 2012 $350M ~7.8x – 10x

19

Target Date Amount / Total Raised Investors

November 2013 $27M / $49M Yahoo Japan, Baird Capital, Epic Ventures, Tomorrow Ventures, Others

November 2013 $2.2M / $84M Undisclosed

October 2013 $30M / $97M Peepul Capital, Norwest Venture Partners, Nexus Venture Partners

September 2013 $50M / $140M New Enterprise Associates

August 2013 $38M / $89.3M Sequoia Capital, Northgate Capital, Hummer Winblad, DAG Ventures

August 2013 $33M / $80M Goldman Sachs

July 2013 $40M / $75M Revolution Growth

May 2013 $3M / $73M Atlas Venture, Flybridge Capital Partners, Infocomm Investments

May 2013 $30M / $46M Northgate Capital, Singtel Innov8, Cross Creek, Trinity Partners

April 2013 $35M / $39M Benchmark Capital, Bain Ventures, Battery Ventures, Google Ventures

April 2013 $25M / $87M (Debt Financing) Escalate Capital Partners, Silicon Valley Bank

March 2013 $20M / $107M Temasek, SAP Ventures, Benchmark Capital

February 2013 $15M / $34M Bain Capital, TL Capital

February 2013 $2.2M / $48M Openview Venture Partners, Rose Tech Ventures

February 2013 $18M / $34M OpenView Venture Partners, Austin Ventures, InterWest Partners

January 2013 $60M / $79M Goldman Sachs, Arthur Ventures

November 2012 $25M / $69M Norwest Venture Partners, Nexus Venture Partners

November 2012 $20M / $38M New Enterprise Ventures, Sequoia Capital

November 2012 $30M / $69M Investor Growth Capital, Tenaya Capital, Northbridge Ventures

November 2012 $35M / $101M Altimeter Capital, Cross Creek Capital

Recent Investment Activity

High profile capital providers are showing interest in the broader marketing software

sector through significant investment

Source: Company Press Releases, SEC Filings, Wall Street Research, CapitalIQ, Pitchbook

20


Cloud Infrastructure / Middleware

21

Our Thoughts on the Market

Adoption growing: Enterprises have widely embraced the economic benefits of SaaS and IaaS

solutions and are quickly moving to middleware solutions as the technology matures and

provides an increasingly compelling value proposition

The market is separating: We are beginning to see leaders emerge and break away in an

increasingly crowded market place

Platforms are assembling: The universe is extremely fragmented from both a programming

language and solution perspective. Larger PaaS players (e.g. EngineYard) and major enterprise

vendors are beginning to build platforms through development and acquisition

− IaaS vendors moving up the stack, SaaS vendors moving down the stack to PaaS

Investment and consolidation will continue: Recent acquisitions of Mashery and Layer7

provide a precedent for consolidation which we think will accelerate over the next 18 months

- Investment activity will focus on enabling leading platforms to consolidate and betting on

disruptive point solutions

- Acquisition activity will come from diverse industry sectors as larger vendors continue to

build out their cloud strategies

We expect the level of transaction activity in the broad cloud middleware sector to

accelerate in the coming year as vendors race to complete their technology stack

22

Market Map for Application & Integration Platforms

Application / Suite API Data

Sc

ale

S

mall

Larg

e

Sc

ale

S

mall

Larg

e

APPLICATION PAAS

INTEGRATION PAAS

PURE PLATFORM PLATFORM + DEV TOOLS

- Used for deployment and scaling of existing or new custom applications developed in-house

- Mainly in use in business environments where application development takes places in-house and

developers are looking to abstract the back-end

- Developers will typically need to adhere to an architecture specified by the PaaS vendor

- Front and back-end of application developed and

deployed in studio provided by vendor

- App development adheres to design templates

provided by vendor in visual studio

PaaS

Scale based on company funding and revenue, where available

Acquired

23

Market Map for Point Solutions & Specialists APP DEVELOPMENT & TESTING

- Tools for rapid application design, development and

testing prior to deployment through a platform

SECURITY & IDENTITY TOOLS

- Point solutions to manage private or public PaaS

security and user identity

DATABASE & ANALYTICS

- Outsourced database platforms and BigData

analytics platforms

BUSINESS PROCESS MANAGEMENT

- Supports software development and SOA by

providing defined, reusable business processes

MBAAS - Mobile back-end-as-a-service

- Focused exclusively on the stacks used for mobile

applications

Security Identity Development Testing Data Analytics

Developer Enterprise


Acquired

24

Application

PaaS

Integration

PaaS

Leading Cloud Infrastructure / Middleware Consolidators

Point Solution

PaaS

Diversified Technology Consolidators

Upgrading product offerings as software development shifts away

from legacy products to the new paradigm

While there will be interest in cloud middleware from diverse industry sectors, we

believe three main industry sectors will drive the consolidation

EXAMPLES OF PAAS CONSOLIDATORS

25

Recent Acquisition Activity

Target Acquirer Date Solution

December 2013 Application PaaS

December 2013 MBaaS

November 2013 Integration PaaS

November 2013 IaaS and PaaS

October 2013 PaaS

September 2013 Application PaaS

August 2013 Application PaaS

July 2013 Integration PaaS

July 2013 Integration PaaS

June 2013 Application PaaS



April 2013 MBaaS

April 2013 Visual PaaS

April 2013 Integration PaaS

April 2013 Integration PaaS

26


Target Date Solution Amt. / Total Raised Investors

Jan 2014 Application PaaS $25M / $38M Battery Ventures, Prime Ventures

Dec 2013 Application PaaS $16M / $32M Safeguard Scientifics, Ignition, NEA

Dec 2013 Integration PaaS $3.75 / $41 Ignition Venture Partners, Andreessen Horowitz

Sep 2013 Application PaaS Undisclosed Maxfield Capital

Sep 2013 Security $27M /$53.7M Sequoia Capital, Andreessen Horowitz, Greylock

Sep 2013 Security $6.5M / $43.6M Ignition Partners, Others

Jul 2013 Integration PaaS $35M / $120.8M BlackRock, Accenture, Others

Jul 2013 MBaaS $12.1M / $82.9M EDB Investments, Mayfield Fund, Others

Jul 2013 Application PaaS $2M / $16.9M Undisclosed

Jun 2013 Data & Analytics $3.5M / $15.6M Hummer Winblad Ventures,

Jun 2013 Application PaaS $3.4M / $3.4M Sierra Ventures, Andreessen Horowitz, Others

May 2013 Data & Analytics $12M / $15M Devonshire Investors, Rackspace, Toba, Others

May 2013 IaaS $10M / $14.3M Trinity Ventures, Juniper Networks, Seagate

May 2013 Application PaaS $9M / $9.7M Intel Capital, ACT VC, Kernel, VMWare

Apr 2013 Application PaaS $105M / $105M General Electric

Apr 2013 Application PaaS $7.5M / $18M Atlas Venture, Citrix, Maayan Ventures

27


Human Capital Management

28

Human Capital Management Market Remains Active

High-growth sector: Talent management continues to be a priority for executives and is

being driven by changes in how enterprises interact with human capital

HR is increasing in complexity: The emergence of social media, collaboration and

mobility as enterprises continue to align with the ‘Web 2.0’ world creates more opportunity,

but also more challenges, for HR professionals

Highly fragmented market: There is no clear leader in the market, with many point

solutions fighting for share, encouraging players to grow through acquisition

Consolidation is starting: Much of the acquisition and investment activity has been

directed towards enabling and creating talent suites, as SaaS platforms are emerging as

early leaders, a trend we believe will continue in 2013

The human capital management sector has been one of the most active

investment and M&A markets in recent years and we expect the trend to continue

29

SaaS Suite Vendors Dominate the Market

Source: Gartner, Forrester Research

FORRESTER WAVE GARTNER MAGIC QUADRANT

Although the market is saturated with many high profile point solutions, vendors

offering suites with depth, flexibility and ease-of-use are viewed as market leaders

Leaders are consolidating to succeed

in this extremely competitive market

Focused on SaaS suites with an offering

for both performance and learning

30

Many Point Solutions and Few Suite Providers

Sc

ale

L

arg

er

Sm

all

er

POINT SOLUTION PROVIDERS

MARKET CONSOLIDATORS

Talent Acquisition HR Core Admin

Candidate-facing Internal

Talent Management

Employee-facing

31

HCM Point Solutions Market Map

TALENT ACQUISITION

SOURCING RECRUITING + ONBOARDING

TALENT MANAGEMENT

PERFORMANCE + SUCCESSION TRAINING / LEARNING MANAGEMENT

HR CORE ADMINISTRATION

Sc

ale

S

cale

S

cale

RECOGNITION / REWARDS PAYROLL / BENEFITS / TAX / COMPLIANCE TIME + ATTENDANCE

32

Recent Strategic M&A Activity

Source: Company Press Releases, SEC Filings, Wall Street Research, CapitalIQ, PitchBook


February 2014 Talent search engine

February 2014 Online job search portal

October 2013 Talent acquisition and management software

August 2013 Online training for IT professionals

May 2013 Behavioral assessment solutions

December 2012 Time and attendance software for SMBs

September 2012 Online job search portal

September 2012 SaaS social recruiting and networking

September 2012 E-learning and talent management content provider

August 2012 SaaS solutions for recruiting and developing employees

June 2012 Video interviewing platform

April 2012 Performance and succession management software

March 2012 Workforce management software

March 2012 SaaS solutions for organizational change and growth

February 2012 On-demand talent management software

February 2012 Workforce management

February 2012 Workforce training software

= Falvey Partners acted as advisor: case study and process overview in rear of book

33


Target Date Amount / Total

Raised Investors

Feb 2014 $750M (Recap) Blackstone, GIC

Feb 2014 $20M / $26M General Catalyst, KPCB

Feb 2014 $11M / $25M Accel-KKR, Norwest Venture Partners

Jan 2014 $4.5M / $9M Undisclosed

Oct 2013 $16M / $63.8M Starvest, Morgenthaler, Scale, C&B Capital, Intersouth, others

Oct 2013 $25M / $53.5M Sequoia Capital, ICG, Granite Ventures, Peterson Ventures

Sep 2013 $20M / $27.7M Highland Capital Partners

Aug 2013 $10M / $15.5M Rembrandt Venture Partners, The Mayfield Fund

Aug 2013 $16M / $203.5M Foundation Capital, Azure Capital Partners, Intel Capital, Others

Aug 2013 $2M / $3M IrishAngels

Jul 2013 $2.1M / $2.1M Venrock, Maverick Capital, Andreessen, General Catalyst

Jul 2013 $1M / $1M Andreessen, Kapor Capital, Founder Collective, Greylock

Jul 2013 $7M / $11.7M Edison Ventures, Carmel Ventures

Jul 2013 $5.3M / $8.2M Atlas Venture, Google Ventures, NextView Ventures

Jul 2013 $1.5M / $2.3M MMC Ventures

Source: Company Press Releases, SEC Filings, Wall Street Research, CapitalIQ, PitchBook

34


Business Intelligence / Analytics

35

Overview

Market evolving: Enterprises are moving away from legacy solutions and towards a growing

crop of disruptive vendors (e.g. Tableau, GoodData) addressing a new set of BI needs such as

mobile, BigData, cloud and social

BI remains a top priority for IT: Having neglected BI spending over the past few years,

enterprises are refocusing on growth initiatives and upgrading to more robust BI solutions

- New cloud-based solutions touting ease-of-use will also extend the appeal of BI solutions to

the mid-market, who will play a major role in overall market growth

• Next-gen solutions are being funded: Disruptive vendors that are gaining traction are receiving

significant funding from VCs to take advantage of the market window

Legacy players need to catch up: Larger legacy players (SAP, Oracle, IBM, etc.) will look to

acquire more nimble independent vendors in an effort to keep pace with the rapid evolution of the

BI analytics market

The BI analytics market is quickly moving to the “2.0” phase of its lifecycle which we

believe will usher in a wave of investment and consolidation activity

36

Market Map


Scale

L

arg

er

Sm

alle

r

Functionality BI 1.0 BI 2.0

<$25M

$25M - $100M

$100M - $500M

$500M+

37

M&A Interest Comes from Several Angles

DATA & INFRASTRUCTURE APPLICATION VENDORS

• Vendors controlling the data and infrastructure layer

• Focused on platform acquisitions to move up the technology

stack towards the application layer

• Enterprise application vendors

• Will look to acquire front-end solutions to broaden product

offering; pursue select vertical acquisitions

DIVERSIFIED TECHNOLOGY / FULL-STACK BI PURE-PLAY BI VENDORS

• Diversified technology vendors offering solutions across the BI

stack, from hardware to applications

• Will look to do technology tuck-ins as well as acquire platforms

• Independent BI vendors of scale looking to build BI product

offering across the technology stack

• More focused on tuck-in technology / functionality acquisitions

38

Recent Acquisition Activity


January 2014 Maker of scientific BI software

October 2013 Active subscriber intelligence platform

October 2013 Technology and personalized BI

September 2013 Predictive analytics and modeling

August 2013 Real-time operational intelligence

June 2013 Visual analytics and BI

June 2013 Custom analytics

June 2013 Streaming analytics software

May 2013 Advanced visualization for data

March 2013 Web and Social Media Analytics Technology

March 2013 BI and analytics software

February 2013 Process automation for BI software

October 2012 Big data search and analytics

September 2012 Personalized SaaS BI

August 2012 Big data analytics

June 2012 Metadata management

May 2012 Real-time network data analytics

39


Target Date Amt. / Total Raised Investors

Feb 2014 $125M / $248M TPG Growth, Salesforce, Greylock, IVP, Mercato, others

Nov 2013 $4M / $4M Alven Capital Partners

Oct 2013 $7M / $27M Undisclosed

Sept 2013 $27.5M / $49M LLR Partners, Updata Partners

Aug 2013 $38M / $91.3M Sequoia, Northgate, Hummer Winblad, DAG Ventures

Jul 2013 $4.1M / $5.2M Columbus Nova Technology Ventures, Razor’s Edge, CIT

Jun 2013 $22M / $74M TOTSV Ventures, Adreessen Horowitz, General Catalyst

Jun 2013 $8M / $13.5M Draper Fisher Jurvetson, Atlas Venture

May 2013 $46M / $97M Bessemer, Norwest Ventures Partners, ONSET Ventures

May 2013 $12M / $18M Toba Capital, SAP Ventures

May 2013 $6.5M / $7.7M Trinity Ventures, SoftTech VC

May 2013 $254M (IPO) New Enterprise Associates was the seller

Apr 2013 $39M / $86.5M Investor Growth Capital, QuestMark Partners, Intel Capital

Apr 2013 $10M / $23.5M Battery Ventures, Opus Capital, Genesis Partners

Mar 2013 $2.5M / $10.6M Undisclosed

Feb 2013 $1M / $1M (Debt) Intel Capital, JMI Equity, Others

40


Enterprise Mobility

41

Enterprise Mobility Will Continue to be an Active Sector in 2014

Strong growth outlook: Enterprise mobility continues to be a major area of focus for enterprises

and the underlying macro drivers are undeniable

Enterprises are demanding unified solution sets: The requirements of enterprise mobility

continue to evolve in lockstep with the industry: what started with a need for basic MDM / end-

point security has quickly spread to MAM, data security and deeper mobile security

Large players will need to acquire to build solution sets: The exploding demand from

enterprises for a unified mobility solution will translate to consolidation and investment activity in

the industry

- We believe that the consolidation seen in the second half of 2012 and 2013 will continue to

play-out as the larger players in the space and tech consolidators round out their portfolios

- Many of the tech consolidators have fallen behind more acquisitive competitors and will

need to acquire to keep pace

We expect the level of investment and transaction activity in enterprise mobility to

continue into the coming year

42

Market Divided Between Large Players and Point Solutions

Device Focus Application / Data Focus

= Acquired / Operating Subsidiary

Sc

ale

S

ma

lle

r L

arg

er

Market Solution

Scale based on available revenue figures and amount of funding raised

43

Solution Landscape Among Large Strategics

Current EMM product portfolios are being assembled through partnerships and

acquisition. Consolidation activity will remain as companies bring capabilities in-house

Potential Buyer Deployment Products Customer Strength Major Partners

Cloud On-Premise MDM MAM Security App Dev. Analytics Content Enterprise SMB

Large, Diversified Enterprise Software Vendors

CA Technologies X X

Dell X Microsoft

EMC X X X

HP P A R T N ER X F5 Networks

IBM X X

Microsoft

Oracle X X

SAP X P A R T N ER X Appcelerator, Phonegap (Adobe), Sencha

Salesforce X

Infrastructure / Network Management

Aruba Networks P A R T N ER SOTI, MobileIron, JAMF Software

BMC Software P A R T N ER P A R T N ER P A R T N ER P A R T N ER X AirWatch

Cisco P A R T N ER P A R T N ER P A R T N ER X AirWatch, Good Technology, MobileIron, Zenprise

Citrix

F5 Networks P A R T N ER AirWatch, MobileIron, Silverback MDM, Zenprise

Juniper Networks X

LANDesk X P A R T N ER Kaspersky Labs

Palo Alto Networks P A R T N ER P A R T N ER P A R T N ER MobileIron, Zenprise

Research in Motion X

VMware X P A R T N ER P A R T N ER X Cisco, Dell, F5 Networks, Symantec, McAfee

Security / Support Software

Absolute Software X P A R T N ER P A R T N ER P A R T N ER P A R T N ER Intel, McAfee, Microsoft, Qualcomm, Verizon

BeyondTrust X P A R T N ER IBM, Microsoft, Oracle, HP, McAfee, VMware

Kaseya

LogMeIn X X X

McAfee

Symantec X

Stronger Offering Acceptable Offering No Offering

44

Enterprise Mobility Precedent Transaction

Strategics have been aggressively rounding out product offerings through acquisition,

acquiring targets at premium valuations

Target Acquirer Date Valuation* EV/Revenue*

January 2014 $1,540 N/A

November 2013 $300M - $325M 6.0x – 6.5x

November 2013 Undisclosed N/A

February 2013 $1,000M 14.3x

December 2012 $355M 15.4x

October 2012 $25M 31.3x

June 2012 $82M 4.1x

April 2012 $28M 28.0x

March 2012 $60M 12.0x

February 2012 $70M 23.3x

July 2010 $5.4B 4.5x

April 2010 $200M 6.7x

Median: 13.2x

Mean: 14.6x * Data based on Falvey Partners’ and market estimates when not publicly disclosed

Source: SEC Filings, Company Press Releases, Wall Street Research, 451 Research, CapitalIQ

45


Other Focus Areas

46

Additional Focus Areas

Outside of the sectors covered above, we focus on a few additional high profile

sectors and are continually expanding our reach

E-DISCOVERY E-LEARNING

With legal / compliance areas becoming

more important areas for IT spending and

the amount of electronically stored

information growing exponentially, the e-

discovery market has attractive growth

drivers

While not a hot market in recent years, the

space will consolidate, a function of client

needs and a fragmented, localized market − Large enterprise software vendors

looking to acquire small e-discovery

point solutions to build solutions that

span the entire EDRM lifecycle

− The handful of strong, independent e-

discovery companies will have the

opportunity to consolidate subscale

local competitors

The emergence of e-learning solutions has

rapidly taken market share from traditional

instructor-led training at both the K-12 and

corporate training levels

The popularity of MOOCs has led to a sizable

amount of new companies emerging and

investment activity in the space (i.e. Coursera,

Udacity, Udemy)

At the corporate level there has been a

convergence of e-learning with talent

management solutions to provide a platform

for full human capital management

− Oracle acquired Taleo which acquired

Vurv, Learn.com, Cytiva Software and

Jobpartners

− SAP acquired SuccessFactors which

had acquired Plateau Systems

47

Additional Focus Areas (cont.)

MOBILE-BACKEND-AS-A-SERVICE ENTERPRISE SOCIAL SOFTWARE

Relatively new technology, though new

companies have been popping up in the

space on a weekly basis

A simpler, more cost effective way for

developers and enterprises to develop

mobile apps, MBaaS vendors are taking

market share from traditional MADP

vendors

Much like PaaS of years ago, MBaaS

vendors must prove the technology is

enterprise-grade and scalable before

gaining mind share from potential

acquirers

Facebook’s recent acquisition of Parse

($80M) and Paypal’s acquisition of

StackMob may provide a light tailwind for

activity

The maturation of social media has

created a diverse landscape segmented

with numerous use cases of social media,

both internally (communication and

collaboration) and externally (marketing,

customer care)

The vastness of segments in social

enterprise software has led to a dynamic

where only the large players with

platforms will be able to keep up with

everything to be competitive and must

build solution sets by acquiring point

solutions

IBM, Jive and Communispace have

emerged as the early leaders of enterprise

social software market share

falvey partners focus & sector overviews

Software

wall street

company press

diverse industry

leading strategic

leading companies

send platforms

bi analytics

disruptive