gca insurtech sector report q1 2019...ev/ ’20e revenue and at . 17.2x. ev/ ’20e ebitda, leading...
TRANSCRIPT
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Insurance TechnologySector Summary
Q1 2020
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COVID-19 STATEMENT
We at GCA are closely monitoring the effects of the Covid-19 pandemic. First and foremost, we are committed to ensuring our employees and families remain safe and healthy and we hope you, your employees and loved ones remain safe and healthy as well. We are also incredibly grateful for everyone in the medical community, as well as the numerous essential service providers keeping us safe and keeping our communities running in these difficult times.
While this is an unprecedented time, deals are continuing to take place. Each business—whether public or private, established or new, domestic or international—has a unique set of needs. With this in mind, we want to offer our expertise, insights and perspective to help you navigate this environment.
Please contact a member of our team to discuss the what we are seeing in the market and how you could best position your business at this time and in the future.
NOTE ABOUT THE CURRENT CLIMATE
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Key US Developments Select Implications for Insurance & InsurTech
MARKET UPDATE: COVID-19
» Most of the US under some form of stay-at-home order
» ~95% of the population / 45 of 50 states starting in mid-March
» As new cases reach a peak, governments carefully planning ways to re-open the economy
» Unemployment claims reach record high
» Cumulative 22m filed in the last 4 weeks (represents ~13% of the US labor force)
» Healthcare capacity under heavy stress
» Exponential increase in number of cases, hospitalizations and deaths
» Lack of resources (hospital beds, PPE, medical equipment, medical staff)
» Strong bipartisan fiscal action
» $2+Tn CARES act passed on 3/27 to provide relief to unemployed and small businesses
» Senate passed an additional ~$500Bn bill on 4/21 replenishing the small business loans program
» Unprecedented Federal Reserve response
» Fed reduced the fed funds rate to 0-0.25% on 3/15
» Introduced “unlimited” bond buying program
Insurance remains a must-have
» Consumers continue to view insurance as a requirement and had maintained coverage through 08/09 recession
» Expected to exhibit similar behavior in 2020
Certain sectors of Insurance more affected than others
» Life Insurance more exposed than P&C and Health and Medicare
» P&C insurers stand to increase profitability with less miles driven leading to lower claims
Online distribution models expected to benefit
» Consumers under stay-at-home orders unlikely to interact with independent brokers
» Increased comparison shopping by consumers to save costs
» Higher P&C profitability to lead to larger customer acquisition budgets
Insurance Software largely seen as resilient
» Mission critical software and recurring revenue nature expected to withstand market headwinds
» Winning new business remains an uncertainty
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EXECUTIVE SUMMARYQ1 2020 InsurTech wrap-up
Select Q1 Active Investors Select Q1 Active Buyers
Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 4/23/20.
Despite the challenging macro environment, InsurTech continues to be an active category, with ~$1Bn in financing volume and ~$400MM in M&A volume during Q1 2020
» Financings in Q1 2020 (81) were up from the same period in 2019 (72), but the aggregate amount raised declined by ~50% year-over-year
» M&A activity was tempered with 20 transactions during Q1 2020 as compared to 35 transactions during the same period in 2019
Large financing rounds took place in Q1 but most were completed in either January or February» Notable rounds in the quarter included PolicyGenius’ $100MM raise led by KKR/AXA and Justworks’ $50MM raise led by Union
Square Ventures/FirstMark, and EIS Group’s strategic financing (GCA advised)
Corporate VCs’ investments in the InsurTech space continued in Q1 as American Family Ventures invested in Clearcover and AXA invested in PolicyGenius
Q1 M&A activity kicked off slower than previous years and was heavily weighted towards European transactions» Notable deals included Lovell Minnick’s $276MM acquisition of UK-based Charles Taylor and Allianz’s acquisition of Germany-based
ControlExpert (GCA Advised)
In the public markets Data & analytics companies are trading at 5.7x EV/ ’20E Revenue and at 17.2x EV/ ’20E EBITDA, leading public company valuations
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GCA INSURANCE TECHNOLOGY OVERVIEW
Companies that focus on customer engagement (e.g., customer acquisition, sales and marketing, mobile solutions and other direct-to-consumer insurance channels) or that offer solutions to improve distribution or facilitate engagement with the end consumer.
RECENT TRANSACTIONS
INSURTECH TEAM
REPRESENTATIVE FOCUS AREAS
Companies that improve existing methodologies for pricing or underwriting risk, or actual insurance companies that bring technology to traditionally low-tech areas by using newer or superior core systems and/or online/mobile offerings.
Insurance is behind the curve in enterprise-level core technology, and InsurTech companies help modernize these operating systems – in particular, policy, claims, and billing software systems.
Companies that provide analytic capabilities to insurance companies to help them operate more efficiently and/or make better underwriting and claims decisions.
DATA & ANALYTICS
Chris GoughManaging [email protected]
John LambrosManaging [email protected]
Strong sector and product expertise across InsurTech
Rushi BhanderiVice [email protected]
POLICY ADMIN, CLAIMS & BACK OFFICE
DISTRIBUTION & CUSTOMER ENGAGEMENT
INNOVATIVE PRODUCTS, PRICING, UNDERWRITING
Sascha PfeifferManaging [email protected]+49 177.741.5643
Martin RezaieVice [email protected]+49 151.4610.6960
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WE ARE PLEASED TO ANNOUNCE OURROLE AS EXCLUSIVE FINANCIAL ADVISOR TO:
GCA TRANSACTION ANNOUNCEMENT
NORTH AMERICA
– Expertise and relationships throughout high-growth private and public technology companies and private equity investors focused on this sector of the economy
– M&A, private capital and private funds advisory services
ASIA
– Strong relationships with leading global Japanese conglomerates and trade buyers
– Full-scope M&A advisory services
EUROPE
– Extensive experience and relationships advising leading PE firms, innovative technology companies and corporates throughout Europe and the Nordics
– M&A and debt advisory services
on its sale of
to
Strategic Financing
Q1 2020 Transactions
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INNOVATION ACROSS THEINSURANCE VALUE CHAIN
` ` `
` `
`
`Peer-to-Peer (P2P)
`Innovative & Specialty Insurance
Benefits Administration & Payroll Policy Management Tools & Software Claims Management Tools & Software
Insurance Data & Analytics IoT & Telematics: Auto`IoT & Telematics: Home
IoT & Telematics: Health
`Health Insurance
`Carrier Affiliated
Customer Origination
Mobile
`Online Distribution & Comparison `Sales, Marketing & Engagement
INSURANCE VALUE CHAIN:Policy Admin,Claims &Back Office
InnovativeProducts, Pricing & Underwriting
Distribution & Customer Engagement
Data &Analytics
Notes:DISCLAIMER: This is a representative list and may not include all relevant companies. If your company is not on the list and would like to be added for future publications, kindly shoot us a note at [email protected] and we would be happy to consider.
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$460
$1,365
$1,636
$1,938
$1,497 $1,653
$2,033
$986
65 65
59
72 72
79
62
81
0
10
20
30
40
50
60
70
80
90
$0
$500
$1,000
$1,500
$2,000
$2,500
Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020
$7.1
INSURTECH DEAL DASHBOARD – FINANCING ACTIVITY
Quarterly Financing Activity ($MM)
LTM financing: $6.2Bn across 294 Deals
$21.0 $27.7 $26.9 $20.8 $20.9 $32.8
Average Deal Size
Ann. Date Company Selected
Investor(s)Amt.
Invested
Post-Money
Valuation
Segment / Value Chain
3/31 Undisc. Undisc. Undisc.
3/09 $40 $145
2/26 $51 NA
2/21 $38 $238
2/20 $34 $124
1/30 $100 $545
1/28 $50 $590
1/10 $84 $800
1/03 $50 $138
Select Q1 2020 Financing Transactions ($MM)
P&C Life Health Distribution & CustomerEngagement
Products, Pricing & Underwriting
Data & AnalyticsPolicy Admin, Claims & Back Office
Insurance Segment Insurance Value Chain
Q1 2020 saw accelerating InsurTech financing deals up ~13% YoY
Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.The GCA Deal Database was refreshed in Q1 2020 to incorporate an improved screening methodology. Accordingly, this data may diverge from previous reports.
$635MM$350MM$300MM$500MM$500MM$375MM$30MM
$12.2
$100MM
GCA Advised Transaction
99
CASE STUDY: GCA ADVISES EIS GROUP ON ITS STRATEGIC FINANCING
$1Bn+
<$1Bn
Selected clients by size
Net
Pre
miu
ms W
ritte
n
Best-of-Breed Cloud-Based Digital Insurance Platform
Transaction Overview
Strategic Financing
− On March 31, 2020, our client EIS Group, a provider of cloud-based software for the insurance industry, announced it has completed a growth equity financing from a lead strategic investor
− GCA acted as exclusive financial advisor to EIS, bringing in a strategic investor to accelerate the business, while also improving the capitalization table and balance sheet position
− Navigated through COVID-19 uncertainty to close during March 2020 lock-down
− Represents GCA’s second transaction for EIS Group
GCA Advised EIS Group
Top-Tier, Blue Chip Client Base with 100%(1) Client Retention
The EIS Suite supports the full lifecycle of an insurance policy, from client acquisition to claims
Secure, end-to-end cloud-based digital insurance platform
Supports all core insurance services and is LOB agnostic
Among first to support the use of emerging technologies, such as cloud services, chatbots and artificial intelligence
Company Overview
Headquarters: San Francisco, CA
Founded: 2008
CEO: Alec Miloslavsky
Description:
− Cloud-enabled and mobile-ready software for the P&C and LAH markets
− Full-stack insurance – multi-channel, multi-line integrated platform forfull insurance lifecycle
− Fast track implementations and bite sized upgrades
− Global presence – Operations in N. America, Latin America, Europe andAsia Pacific
− Recognized as a “visionary” in Gartner’s Magic Quadrant
Notes:1) Excludes folded business.
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GCA acted as exclusive financial advisor to RGI, a portfolio company of Corsair Capital, on the acquisition of Novum
CASE STUDY: POLICYGENIUS RAISES $100MM IN DEBT & SERIES D ROUND
Headquarters: New York, NY
Founded: 2012
Employees: ~200
CEO: Jennifer Fitzgerald
Description: Provider of an online insurance marketplace platform that helpsconsumers review, research, and compare quotes for various typesof insurance products
Current Investors
Policygenius HighlightsProduct Overview
Extensive Market Reach
Over 1MM shoppers per month across all 50 states
Provides services to over 12 different insurance verticals
Over $45Bn in placed coverage
Selected Deal Commentary
We're exceptionally proud of how Policygenius removes the complex and often misleading aspects of the insurance purchasing business entirely … with the support of our investors, we look forward to expanding our reach and product portfolio to broader financial wellness”
Jennifer Fitzgerald, CEO, Policygenius
Engaging content to inform consumers about insurance
Notes:Source: Press releases, company websites.
Series D
$100MM Raised
Allows consumers to compare insurance quotes
Consumers apply and purchase through Policygenius
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Learn
Compare
Apply
Policygenius OverviewTransaction Overview
− On January 30, 2020, Policygenius announced that it raised $100MM through a combination of debt and Series D funding led by KKR and AXA Venture Partners with participation from a number of existing investors
− This financing will put the Company at a post-money valuation of ~$545MM, and bring its total funding amount to ~$151MM
− Policygenius plans to use its new funding for hiring as well as to broaden its consumer financial protection products
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Company Headquarters Founded Amt. Raised ($MM)(1) Company Description
San Francisco, CA $4692013 Cloud-based self-insurance platform for all health plans
Minneapolis, MN $1,0802015 Health insurance platform partnering with health systems and care partners to provide health plans
University Park, IL $1,7501983 Developer of cloud-based insurance software
Jersey City, NJ $9252014 Operator of PPO using data analysis and preventive care to improve health insurance
New York, NY $4802015P&C insurance platform designed to offer coverage quickly and affordably
INSURTECH LEADERS IN PRIVATE FUNDING
Columbus, OH $6282015Online car insurance platform calculating insurance premiums based upon driver behavior
San Francisco, CA $5212011 Cloud-based payroll, benefits, and HR management platform
Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.1) Includes debt and equity financing.
San Francisco, CA $5982013 Cloud-based human resources platform
San Diego, CA $7001946 Developer of collision and medical claims software
New York, NY $1,2802012 Provider of an online health insurance network designed to make insurance simple and intuitive
Top 10 Raised To-Date
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SELECTED ACTIVE INSURTECH INVESTORS
Investor Type Investor Logos
Accelerators / Seed
Venture Capital /Private Equity
Corporate Investors
Alternative Investors
Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.
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MOST ACTIVE INSURTECH INVESTORS – CORPORATE VENTURE CAPITAL
Company Headquarters Number of Investments Investments(1)
Paris, France 19Munich, Germany 15Munich, Germany 12
Madison, WI 11Springfield, MA 10
Paris, France 9Mountain View, CA 9
Columbus, OH 8
(2)
San Francisco, CA 4
New York, NY 6Shenzhen, China 5
Shuidi
6New York, NY
Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.1) AXA invests through XL Innovate, AXA Venture Partners, and Kamet Ventures.2) Allianz invests through Allianz X, Allianz Life Ventures, and Allianz Startups Accelerator.
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$730
$9,037
$953 $2,072
$151
$9,732
$1,069 $413
3029
3335
13
29
23
20
0
5
10
15
20
25
30
35
40
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Q2-2018 Q3-2018 Q4-2018 Q1-2019 Q2-2019 Q3-2019 Q4-2019 Q1-2020
$276
Ann. Date Buyer Target Transaction
ValueSegment /
Value Chain
3/09 Undisc.
2/20 NA
2/19 NA
2/12 NA
1/30 $12
1/21 $276
1/08 $61
1/07 NA
1/07 $35
1/02 NA
INSURTECH DEAL DASHBOARD – M&A ACTIVITY
Quarterly M&A Activity ($MM) Select Q1 2020 M&A Transactions ($MM)
P&C Life Health Distribution & CustomerEngagement
Products, Pricing & Underwriting
Data & AnalyticsPolicy Admin, Claims & Back Office
Insurance Segment Insurance Value Chain
Largest Deal Size
Notes:Source: GCA Deal Database, CB Insights, Pitchbook, S&P Capital IQ as of 3/31/20.The GCA Deal Database was refreshed in Q1 2020 to incorporate an improved screening methodology. Accordingly, this data may diverge from previous reports.
LTM M&A: $11.4 Bn across 85 Deals
$3,500 $720Conf.$1,400$370$6,700$314
GCA Advised Transaction
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CASE STUDY: GCA ADVISES GA ON ITS SALE OF CONTROLEXPERT TO ALLIANZ
Control€xpert Key Product OfferingsTransaction Rationale
ControlExpert’s tech expertise combined with Allianz’s 130 years experience in claims management expected to drive significant innovation in the sector
ControlExpert to benefit from Allianz’s expertise, resources (especially in R&D), and international focus in achieving further growth in Germany and globally
Allianz plans to deploy AI in areas such as image recognition and fraud prevention to provide additional offerings to its customers
Leveraging ControlExpert’s capabilities will enable Allianz to increase speed of settling its automotive claims
Speed Check: Claim amount prediction in real time The application makes use of statistics from millions of
verified transactions – this way, the current vehicle damage can be classified according to comparable damage elements
Easy Claim: Easyclaim is the smart way of handling vehicle claims by
using any mobile device with internet access Within only a few hours the customer receives feedback
about the estimated repair costs for the vehicle and gets to select the repair workshop of their choice
1
2
3
4
Transaction Overview
Notes:Source: Press releases, company websites.
sold
GCA advised General Atlantic
to
− On March 9, 2020, General Atlantic, a premier global growth equity firm, announced its sale of ControlExpert to Allianz via Allianz X
− Headquartered in Langenfeld, Germany, ControlExpert is a multi-national market leader in Artificial Intelligence-supported automotive claims handling
− ControlExpert will maintain its business model and operational autonomy and retain its name, brand and product offering, and will continue to offer its services to existing clients
ControlExpert Company OverviewHeadquarters: Langenfeld, Germany
Employees: ~600
CEO: Nicolas Witte
Corporate History:
» 2002 - Founded
» 2017 - Majority investment by General Atlantic (GCA advised ControlExpert)
» 2020 – Acquired by Allianz X (GCA advised ControlExpert and General Atlantic)
Description:
» ControlExpert offers an end-to-end digital platform for companies to digitalizeand automate their motor claims management
» The Company partners with more than 130 insurances, car dealerships, repairshops, leasing and OEM partners at 17 locations across the world
» It has emerged as a clear leader in AI-based automotive claims processing inGermany and continues to show strong growth in international markets
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(60.0%)(40.0%)(20.0%)
0.0%20.0%40.0%60.0%80.0%
100.0%120.0%140.0%160.0%
Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20
Benefits Admin & Payroll Brokerage Data & Analytics Insurance Software IT & BPO Services Online Distribution
INSURTECH PUBLIC COMPANY VALUATION
LTM Share Price Performance
Public InsurTech Ecosystem
LTM Share Price Performance
(1)%11%
(5)%
13%
61%
(3)%
Online Distribution companies start off strong with Everquote & eHealth leading the pack
Benefits Admin. / Payroll Brokerage Data & Analytics IT & BPO ServicesInsurance Software Online Distribution
(5)% 13% 11% (1)% 61%(3)%
Notes:Source: S&P Capital IQ as of 4/23/20.
(3/31)
17
17.2x15.4x
14.6x13.2x
11.2x9.6x
0.0x
4.0x
8.0x
12.0x
16.0x
20.0x
Data &Analytics
BenefitsAdmin./Payroll
Brokerage InsuranceSoftware
OnlineDistribution
IT & BPOServices
5.7x
4.6x
3.7x
3.1x2.6x
1.6x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
Data &Analytics
Brokerage BenefitsAdmin./Payroll
OnlineDistribution
InsuranceSoftware
IT & BPOServices
INSURTECH PUBLIC COMPANY VALUATION
Enterprise Value / 2020E Revenue
Public InsurTech Ecosystem
Enterprise Value / 2020E EBITDA
2020E Rev. / 2020E EBITDA Multiples
3.7x / 15.4x 4.6x / 14.6x 5.7x / 17.2x 1.6x / 9.6x 3.1x / 11.2x 2.6x / 13.2x
Selected InsurTech subsectors and multiples
Benefits Admin. / Payroll Brokerage Data & Analytics IT & BPO ServicesInsurance Software Online Distribution
Notes:Source: S&P Capital IQ as of 4/23/20.
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SELECTED PUBLIC COMPANY DETAIL
Notes:Source: S&P Capital IQ as of 4/23/20.Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >100 considered NM
($MM, except per share data)Trading Metrics Operating Metrics
Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA MarginCompany 4/23/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E
Benefits Administration / Payroll
Automatic Data Processing $138.70 $59,884 $60,846 4.2x 4.0x 16.8x 15.4x 5% 5% 25% 26%
Paychex $66.82 $23,969 $24,106 6.0x 6.0x 14.7x 15.0x 17% (1%) 41% 40%
Paylocity Holding Corporation $87.44 $4,688 $4,626 9.0x 7.7x 31.7x 27.4x 24% 16% 28% 28%
HealthEquity $48.79 $3,468 $4,577 8.6x 5.9x 23.6x 18.1x 85% 47% 37% 32%
TriNet Group $45.85 $3,152 $3,327 3.6x 3.4x 9.1x 9.0x 4% 4% 39% 38%
Insperity $40.74 $1,578 $1,520 0.4x 0.3x 6.1x 6.2x 12% 4% 6% 5%
Benefitfocus $10.48 $344 $496 1.7x 1.6x 32.0x 22.4x 14% 5% 5% 7%
Castlight Health $0.68 $101 $63 0.4x 0.5x NM NM (8%) (7%) (8%) (12%)
Summary StatisticsMean 4.2x 3.7x 19.1x 16.2x 19% 9% 22% 21%
Median 3.9x 3.7x 16.8x 15.4x 13% 4% 27% 27%
Brokerage
Marsh & McLennan Companies $94.08 $47,425 $60,644 8.3x 7.9x 14.7x 13.8x 7% 5% 56% 57%
Aon Plc $181.59 $42,274 $50,099 4.6x 4.4x 15.8x 14.6x 7% 5% 29% 30%
Arthur J. Gallagher & Co. $77.59 $14,712 $19,249 2.7x 2.7x 14.8x 12.5x 7% 0% 18% 22%
Brown & Brown $35.70 $10,122 $11,334 4.8x 4.6x 15.9x 16.3x 18% 3% 30% 29%
Goosehead Insurance $44.94 $713 $723 8.6x 7.1x 31.6x 24.9x 39% 22% 27% 29%
Summary StatisticsMean 5.8x 5.3x 18.6x 16.4x 16% 7% 32% 33%
Median 4.8x 4.6x 15.8x 14.6x 7% 5% 29% 29%
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SELECTED PUBLIC COMPANY DETAIL (CONT.)
Notes:Source: S&P Capital IQ as of 4/23/20.Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >100 considered NM
($MM, except per share data)Trading Metrics Operating Metrics
Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA MarginCompany 4/23/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E
Data & Analytics
RELX PLC $22.49 $43,286 $51,636 4.9x 5.3x 13.6x 14.9x 10% (7%) 36% 35%
Experian plc $28.85 $25,974 $30,193 6.0x 5.7x 17.8x 16.6x 3% 5% 34% 34%
Verisk Analytics $151.20 $24,563 $27,774 10.7x 9.9x 22.8x 21.2x 9% 8% 47% 47%
Equifax Inc. $132.49 $16,082 $19,264 5.5x 5.6x 16.4x 17.8x 3% (2%) 34% 31%
TransUnion $71.74 $13,615 $17,182 6.5x 6.6x 16.3x 17.2x 13% (2%) 40% 39%
Fair Isaac Corporation $303.88 $8,858 $9,770 8.2x 8.1x 25.7x 25.2x 12% 2% 32% 32%
CoreLogic $35.61 $2,814 $4,525 2.6x 2.6x 9.1x 8.8x (2%) (2%) 28% 30%
LiveRamp Holdings $33.07 $2,228 $1,482 5.2x 3.9x NM NM 30% 33% NM NM
Summary StatisticsMean 6.2x 6.0x 17.4x 17.4x 10% 4% 36% 36%
Median 5.8x 5.7x 16.4x 17.2x 9% 0% 34% 34%
Insurance Software
Guidewire Software $88.34 $7,322 $6,693 9.7x 9.1x NM NM (6%) 6% 17% 13%
Sapiens International Corporation N.V. $22.88 $1,149 $1,205 3.7x 3.2x 21.9x 18.9x 12% 15% 17% 17%
Ebix $17.28 $527 $1,262 2.1x 1.9x 7.0x 6.6x 18% 10% 31% 29%
Majesco $5.54 $240 $198 1.4x 1.4x 17.1x 13.2x 17% 1% 8% 10%
Summary StatisticsMean 4.2x 3.9x 15.3x 12.9x 10% 8% 18% 17%
Median 2.9x 2.6x 17.1x 13.2x 15% 8% 17% 15%
20
SELECTED PUBLIC COMPANY DETAIL (CONT.)
Notes:Source: S&P Capital IQ as of 4/23/20.Figures based on S&P Capital IQ Consensus Estimates as appropriate. Multiples <0 and >100 considered NM
($MM, except per share data)Trading Metrics Operating Metrics
Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA MarginCompany 4/23/2020 Cap Value (EV) CY19A CY20E CY19A CY20E 19A/18A 20E/19A CY19A CY20E
IT & BPO Services
Accenture plc $172.31 $109,766 $108,183 2.5x 2.4x 14.8x 13.6x 8% 2% 17% 18%
Tata Consultancy Services Limited $23.14 $86,841 $83,058 3.8x 4.0x 14.4x 15.2x 8% (6%) 26% 27%
Infosys Limited $8.39 $35,599 $33,152 2.6x 2.7x 10.8x 11.4x 10% (3%) 24% 24%
Cognizant Technology Solutions Corporation $52.26 $28,672 $26,959 1.6x 1.6x 8.2x 8.7x 4% (2%) 20% 19%
CGI Inc. $59.30 $15,307 $17,482 1.8x 2.0x 10.1x 10.1x 11% (8%) 18% 20%
Wipro Limited $2.36 $13,438 $10,302 1.2x 1.3x 5.8x 6.7x 3% (6%) 21% 19%
ExlService Holdings $53.28 $1,831 $1,844 1.9x 1.8x 11.3x 9.9x 12% 3% 17% 18%
Mphasis Limited $8.85 $1,652 $1,566 1.3x 1.3x 7.3x 7.1x 11% (1%) 18% 19%
Mindtree Limited $9.57 $1,574 $1,506 1.4x 1.5x 10.8x 9.6x 11% (2%) 13% 15%
Virtusa Corporation $30.25 $903 $1,117 0.9x 0.9x 9.5x 8.1x 9% 0% 9% 10%
Crawford & Company $6.08 $322 $571 0.5x 0.6x 5.2x 5.4x (2%) (2%) 10% 10%
Summary StatisticsMean 1.8x 1.8x 9.8x 9.6x 8% (2%) 18% 18%
Median 1.6x 1.6x 10.1x 9.6x 9% (2%) 18% 19%
Online Distribution
eHealth $118.88 $3,003 $3,018 6.7x 5.0x 34.3x 23.2x 79% 35% 20% 21%
Moneysupermarket.com Group PLC $3.82 $2,049 $2,062 4.0x 4.2x 11.1x 12.2x 13% (4%) 36% 34%
EverQuote $38.05 $1,019 $973 4.0x 3.1x NM NM 49% 31% 3% 4%
QuinStreet $8.61 $445 $384 0.8x 0.7x 11.3x 7.8x 7% 7% 7% 10%
GoCo Group plc $0.90 $379 $480 2.3x 2.4x 11.4x 10.3x 7% (2%) 20% 23%
Summary StatisticsMean 3.6x 3.1x 17.0x 13.4x 31% 13% 17% 19%
Median 4.0x 3.1x 11.4x 11.2x 13% 7% 20% 21%
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Global investment bank providing strategic M&A and capital markets advisory services to growth companies and market leadersGCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK
Notes:GCA operates as GCA in America and Asia, and as GCA Altium in Europe.
ZURICH
MILAN
FRANKFURT
MUNICH
TEL AVIV
LONDON
BIRMINGHAM
MUMBAI
SHANGHAI
SINGAPORE
TOKYO
NEW DELHI
NAGOYA
HO CHI MINH CITY
TAIPEI
PARISLEEDS
FUKUOKA
NEW YORK
SAN FRANCISCO
Sector expertise: Expansive coverage
and deep specialization
Exceptional cross-border capabilities:
Over a third of all transactions
Global platform:25 offices in key markets across
America, Asia and Europe
Broad spectrum of clients:
Leadingconglomerates, top
private equity firms and emerging high-growth companies
Experienced team: Over 500 employees
across the globe
Strong reputation and track record: High number of
repeat clients and referrals
Diversified business model:Geographically
balanced, synergistic and complementary
focus areas
KYOTO
OSAKA
MANCHESTER
LAUSANNE
STOCKHOLM
22
Payments Real Estate Tech Banking & Lending Tech Insurance TechnologyPaymentsInsurance TechnologyFinancial SaaS
Insurance TechnologyPayments Insurance TechnologyLiquidity VenuesInvestment TechnologyWe Advised Asahi
Insurance TechnologyInsurance Technology
Selected FinTech experienceGCA OVERVIEW
Insurance Technology Transaction
Insurance TechnologyReal Estate TechReal Estate Tech
Insurance Technology
PaymentsInsurance TechnologyProperty TechBanking & Lending Tech
Growth Investment
Insurance TechnologyReal Estate TechInsurance TechnologyReal Estate Tech
Notes:The above transactions represent a compilation of deals that GCA entities,including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on.
Insurance TechnologyInsurance Technology
23
GCA is a global investment bank that provides strategic M&A, capital markets and private funds advisory services to growth companies and market leaders. The firm offers worldwide coverage with over 500 professionals in 25 offices across America, Asia and Europe. Built by the people that run the business, GCA is a firm of experts who focus on deals that require commitment, original perspective, skill and exceptional networks.
www.gcaglobal.com
This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third-party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision.
DISCLAIMER: This report includes logos or other words or devices that may be registered trademarks of their respective owners. Such use is solely for purposes of convenience in referring to the trademark owners and their products/services. This report and its contents are not endorsed by, sponsored by or affiliated with any trademark owners. GCA Advisors, LLC and its affiliates are not affiliated with any trademark owner but may provide financial services to one or more trademark owners or their affiliates.