shea & company, llc member finra & sipc copyright © 2012 boston 200 clarendon street,...

Shea & Company, LLC

www.shea-co.comMember FINRA & SIPCCopyright © 2012

Boston200 Clarendon Street, Floor 25Boston, MA 02116

Michael H.M. SheaManaging [email protected]

Christopher J. [email protected]

San FranciscoOne Ferry Building, Suite 255San Francisco, CA 94111

Michael S. BarkerManaging Director [email protected]

Quarterly Enterprise Software Market Review3Q 2012

Copyright © 2012 Shea & Company, LLC 2

Contents

M&A Activity

Software M&A Activity Overview p. 2

Software Acquisitions: Trend Analysis p. 3

Publicly-Available Software M&A Transaction Data p. 4

Announced Software Acquisitions: 3Q 2012 p. 5

Most Active Software Acquirers p. 8

Public Equity Market Valuations

Public Equity Market Valuations Overview p. 14

Equity Trading Multiples by Growth Tranche p. 15

Equity Trading Multiples by Segment p. 16

Equity Trading Multiples by Comparable Subset p. 21

Public & Private Equity Financing Activity

Capital Raise Activity: 3Q 2012 p. 23

Software IPO Pricing & Performance Data p. 26

IPO Pipelinep. 27

Copyright © 2012 Shea & Company, LLC

Enterprise EV / Revenue

Target Acquirer Value CY FY

Ariba SAP $1,390 n/a n/a

Quest Dell $1,280 3.5x 3.0x

Yammer MSFT $1,031 n/a n/a

Paradigm Apax & JMI $425 n/a n/a

Buddy Media SFDC $392 5.2x 4.5x

Demandforce Intuit $272 n/a n/a

$250 n/a n/a

M&A Activity

Software M&A Activity Overview

Summary Transaction Activity ($ millions)

3

Notable Announced Transactions: 3Q 2012 ($ millions)

Note: Business Applications includes: ERP & Business Applications; Technical & Embedded ApplicationsInformation Management includes: Business Intelligence; Content ManagementInfrastructure includes: Application Delivery & Network Acceleration; Platforms, Development Tools & Deployment; Storage Management; Systems & Network ManagementSource: Company releases, Wall Street research

Q3 2011 Q3 2012 TTM 3Q11 TTM 3Q12Number of TransactionsBusiness Applications 32 60 133 225 IT Security 12 13 49 52 Information Management 7 12 27 59 Infrastructure 15 20 70 95 Financial Applications 12 12 53 51 All Software 78 117 332 482

Disclosed Transaction ValueBusiness Applications 5,534$ 4,833$ 17,570$ 23,820$ IT Security 1,487 254 1,963 1,839 Information Management 11,156 54 12,251 1,540 Infrastructure 1,191 289 6,421 4,716 Financial Applications 3,545 626 5,327 2,589 All Software 22,913$ 6,056$ 43,531$ 34,504$

Q3 2011 Q3 2012 TTM 3Q11 TTM 3Q12Median EV/TTM Rev (# disclosed)Business Applications 3.7x (3) 2.8x (5) 3.8x (22) 3.4x (21)IT Security - (0) 5.7x (2) 1.9x (6) 4.8x (3)Information Management 7.3x (2) - (0) 2.8x (6) 2.3x (6)Infrastructure 8.2x (2) 3.5x (1) 7.5x (10) 2.7x (5)Financial Applications 2.6x (2) 0.8x (1) 2.6x (5) 1.8x (6)All Software 3.7x (9) 3.5x (9) 3.4x (49) 2.8x (41)

Median EV/TTM Rev (# disclosed)< $250 4.5x (1) 2.4x (6) 2.5x (27) 2.0x (25)$250 - $500 2.9x (4) 4.2x (2) 5.5x (9) 3.5x (7)$500 - $1000 6.5x (1) - (0) 6.3x (5) 3.4x (1)> $1000 3.7x (3) 4.0x (1) 3.2x (8) 5.6x (8)All Software 3.7x (9) 3.5x (9) 3.4x (49) 2.8x (41)


M&A Activity

Software Acquisitions: Trend Analysis

By Transaction Size: 2011 – 2012 YTD

By Target Segment: 2011 – 2012 YTD

Note: Business Applications includes: ERP & Business Applications; Technical & Embedded ApplicationsInformation Management includes: Business Intelligence; Content ManagementInfrastructure includes: Application Delivery & Network Acceleration; Platforms, Development Tools & Deployment; Storage Management; Systems & Network ManagementSource: Company releases, Wall Street research

$9.4 $9.2 $3.3

$31.3$0.4 $0.3

$16.3

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

< $250 $250 - $500 $500 - $1000 > $1000

Aggr

egat

e Dea

l Val

ue ($ b

illio

ns)

Deal Value ($ millions)

197

27 511

6

1

110

50

100

150

200

250

< $250 $250 - $500 $500 - $1000 > $1000

# o

f Dea

ls


Financial

Strategic

2.4x

4.4x

3.1x

6.6x

1.7x

2.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

< $250 $250 - $500 $500 - $1000 > $1000

Med

ian

EV /

Rev

(cur

rent

yea

r)


4.3x

1.9x

5.6x

2.0x2.5x2.5x

1.7x

2.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

BusinessApplications

IT Security InformationManagement

Infrastructure FinancialApplications

Med

ian

EV /

Rev

(cur

rent

yea

r)

$27.2

$2.1

$13.6$5.8 $4.5

$11.4

$1.4$1.2

$3.1

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45




Aggr

egat

e Dea

l Val

ue ($ b

illio

ns)

105

21 25

59

30

12

1

3

2

0

20

40

60

80

100

120

140




# o

f Dea

ls

Financial

Strategic


M&A Activity

Publicly-Available Software M&A Transaction Data

Note:Includes only transactions for which data was publicly availableP/E multiples in excess of 100x or less than 0x are considered to be not meaningfulSource: Company releases, Wall Street research

3Q 2012 ($ millions)

Consideration Equity Enterprise EV / Revenue P/E Ratio

Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr

09/28/12 Spend Radar SciQuest 79.5% 20.5% $9 $18 - - - - -09/24/12 Draig Technology Ltd. Utilisoft Ltd. 100.0% - $1 $1 1.6x - - - -09/21/12 Empresa Brasileira de Sistemas Ltd. Folhamatic Tecnologia em Sistemas Ltd. 100.0% - $14 $17 - - - - -09/18/12 Logitek Technology Ltd. Smart Employee Benefits - - $3 $3 - - - - -09/18/12 vwd Vereinigte Wirtschaftsdienste AG Vienna GmbH 100.0% - $94 $86 0.8x 0.8x 0.7x 42.6x 81.9x09/13/12 Sensage The KEYW Holding Corporation 62.5% 37.5% $24 $85 7.0x - - - -09/13/12 Strand Technology Ltd. Advanced Computer Software Group plc 100.0% - $3 $3 2.0x - - - -08/27/12 Deltek Thoma Bravo 100.0% - $892 $1,031 - - - - -08/27/12 Kenexa IBM 100.0% - $1,307 $1,280 4.0x 3.5x 3.0x - -08/16/12 Adeptra Fair Isaac - - - $115 - - - - -08/13/12 UC4 Software GmbH EQT Partners AB 100.0% - $272 $272 3.5x - - - -08/09/12 Qt Development Frameworks Digia Oyj 100.0% - $5 $5 - - - - -08/08/12 Servigistics PTC - - - $220 2.8x - - - -08/07/12 Argus Information & Advisory Services Insurance Services Office 100.0% - $405 $425 - - - - -08/07/12 Xformity Altametrics 100.0% - $1 $1 - - - - -08/03/12 Springsoft Synopsys 100.0% - $284 $392 4.9x 5.2x 4.5x 13.7x 10.5x08/01/12 Frisk Software International (assets) Commtouch Software Ltd. 35.2% 64.8% $3 $4 - - - - -07/31/12 Wildfire Google - - - $250 - - - - -07/30/12 Sunquest Information Systems Roper Industries - - - $1,390 - - - - -07/26/12 Zencoder Brightcove 100.0% - $25 $30 - - - - -07/24/12 Upside Software SciQuest 100.0% - $21 $28 - - - - -07/17/12 Access Delta Access UK Ltd. 100.0% - $8 $8 - - - - -07/12/12 Cassis International Pte. Ltd. Morpho SA 100.0% - $5 $5 - - - - -07/12/12 Wavecom Solutions Hawaiian Telcom 100.0% - $13 $13 - - - - -07/09/12 GoInstant Salesforce.com - - $70 $70 - - - - -07/05/12 PeopleCube Asure Software 90.2% 9.8% $11 $14 - - - - -07/03/12 Lindenhouse Software Ltd. Reckon Ltd. 100.0% - $9 $23 - - - - -07/02/12 BreakingPoint Systems Ixia - - - $160 4.4x - - - -07/02/12 Lateral Data Xerox Litigation Services 100.0% - $30 $30 - - - - -07/02/12 Sigrity Cadence Design 100.0% - $72 $78 - - - - -


M&A Activity

Announced Software Acquisitions: 3Q 2012

Source: Company releases, Wall Street research

6

($ millions)

Announced Target Acquirer Target Segment & Description Price

09/28/12 Spend Radar SciQuest ERP & Business Applications - Spend management and analysis $1809/27/12 Sawfish Software Ltd. TDX Group Ltd. ERP & Business Applications - Workflow and case management for the debt management sector n/a09/25/12 ConceptWave Software Ericsson ERP & Business Applications - Customer lifecycle management for the communications sector n/a09/24/12 Butterfly Software Ltd. IBM Storage Management - Automated analysis and migration of backup data n/a09/24/12 Cofio Software Hitachi Data Systems Storage Management - Unified archiving, backup, CDP and restore n/a09/24/12 Draig Technology Ltd. Utilisoft Ltd. ERP & Business Applications - Billing management and CRM for the energy supplier sector $109/24/12 Mformation Software Technologies Clearlake Capital Group Systems & Network Management - Mobile device management n/a09/21/12 Empresa Brasileira de Sistemas Ltd. Folhamatic Tecnologia em Sistemas Ltd. ERP & Business Applications - Accounting and tax management $1709/19/12 Logicway BV Trimble Navigation Ltd. ERP & Business Applications - Payroll and expense automation for the transportation sector n/a09/18/12 IVARA Bentley Systems Financial Applications - Infrastructure asset analysis and reporting n/a09/18/12 Logitek Technology Ltd. Smart Employee Benefits ERP & Business Applications - Supply chain integration for the packaged goods sector $309/18/12 Stoneware Lenovo Group Ltd. Platforms, Development Tools & Deployment - Cloud-based IT services for education and government sectors n/a09/18/12 vwd Vereinigte Wirtschaftsdienste AG Vienna GmbH Financial Applications - Asset and wealth management for the European market $8609/17/12 Adaco Fourth Hospitality Ltd. ERP & Business Applications - Purchasing and operation control for the hospitality sector n/a09/17/12 SelectMinds Oracle ERP & Business Applications - Enterprise social networking SaaS n/a09/13/12 GroupLogic Acronis Content Management - Mobile file management and collaboration n/a09/13/12 Sensage The KEYW Holding Corporation IT Security - Security information and event management $8509/13/12 Solarsoft Business Systems Ltd. Epicor Software ERP & Business Applications - Warehouse management and ERP for the manufacturing sector n/a09/13/12 Strand Technology Ltd. Advanced Computer Software Group plc ERP & Business Applications - Electronic care records $309/11/12 A.P. Unix FireKing Security Group IT Security - Security and cash management for the retail sector n/a09/11/12 Dataflow Enterprises Vendini Platforms, Development Tools & Deployment - Platform as a service for web-based applications n/a09/11/12 Workshare Technology SkyDox Ltd. Content Management - Document management and collaboration n/a09/10/12 Beetil Service Management Ltd. Citrix Systems & Network Management - Cloud-based IT service management n/a09/10/12 myDIALS Adaptive Planning ERP & Business Applications - Operational performance management n/a09/10/12 NetMotion Wireless Clearlake Capital Group ERP & Business Applications - Mobile workforce productivity management n/a09/10/12 Open Kernel Labs General Dynamics Broadband Technical & Embedded Applications - Virtualization for embedded systems n/a09/07/12 Transoft International NCR ERP & Business Applications - Currency supply chain management SaaS n/a09/06/12 ANTs software Galtech Semiconductor Materials Technical & Embedded Applications - Database consolidation middleware n/a09/05/12 Copiun Good Technology Content Management - User data management and de-duplication tools n/a09/05/12 Firelace Issuer Direct ERP & Business Applications - Financial and accounting platform n/a09/05/12 Income Manager Advanced Solutions International ERP & Business Applications - Fundraising management for the non-profit sector n/a09/05/12 VULNIT SAS Deny All SA IT Security - Industry-specific IT security testing software n/a09/04/12 Prelytis SA Access UK Ltd. Business Intelligence - Business intelligence and information management n/a09/04/12 Whentech IntercontinentalExchange Financial Applications - Option pricing and risk management for the commodities futures sector n/a09/02/12 SolveIT Software Pty Ltd. Schneider Electric SA ERP & Business Applications - Supply and demand optimization n/a08/31/12 CIMTEK Circuit Check ERP & Business Applications - Quality lifecycle management for the manufacturing sector n/a08/30/12 NewsPage Pte Ltd. Accenture CAS GmbH ERP & Business Applications - Sales force automation and mobile applications n/a08/28/12 Inforbix Autodesk Content Management - Cloud-based data management for the manufacturing sector n/a08/28/12 Nodester AppFog Platforms, Development Tools & Deployment - Open source platform as a service n/a08/27/12 Deltek Thoma Bravo ERP & Business Applications - ERP for project-based organizations $1,03108/27/12 Kenexa IBM ERP & Business Applications - Talent acquisition SaaS $1,28008/23/12 AccessTek Armanino McKenna ERP & Business Applications - Cloud-based accounting and financial management for SMBs n/a08/23/12 Leet Systems GreyCastle Security IT Security - Firewall and VPN tools n/a08/22/12 CustomerSat Confirmit ASA ERP & Business Applications - Customer feedback management n/a08/22/12 Hubspan Liaison Technologies Platforms, Development Tools & Deployment - Cloud integration platform n/a


M&A Activity

Announced Software Acquisitions: 3Q 2012 continued

($ millions)


08/22/12 SiteTagger Ltd. BrightTag ERP & Business Applications - Marketing tag management n/a08/21/12 Sky Technologies Pty Ltd. Kony Solutions Platforms, Development Tools & Deployment - Mobile application management framework n/a08/20/12 Fidelis Security Systems General Dynamics IT Security - Data leak prevention n/a08/16/12 ACT750 SAS Lumata France ERP & Business Applications - Real-time customer retention and revenue management n/a08/16/12 Adeptra Fair Isaac Financial Applications - Contact and resolution managment for consumer credit and risk management sectors $11508/15/12 Atira A/S Elsevier BV ERP & Business Applications - Research management for the academic sector n/a08/15/12 Interactive Advisory Software Hanlon Financial Group Financial Applications - Web-based wealth management for investment advisors n/a08/13/12 ThinkGrid Ltd. Colt Technology Services Group Ltd. Systems & Network Management - Infrastructure and control panel platform for the IT sector n/a08/13/12 UC4 Software GmbH EQT Partners AB Systems & Network Management - Workload and virtualization management automation $27208/13/12 Vortex Connect RedPrairie ERP & Business Applications - Mobile workforce management n/a08/10/12 Ability Software Ltd. ISW Development Pty Ltd. Content Management - Email content management and archiving n/a08/09/12 Attolist Newforma ERP & Business Applications - Web-based submittal and construction administration software n/a08/09/12 Qt Development Frameworks Digia Oyj Platforms, Development Tools & Deployment - Cross platform user interface and application framework $508/08/12 FAME Facility Software Solutions Ameresco Canada ERP & Business Applications - Infrastructure asset management n/a08/08/12 InstaOps Apigee ERP & Business Applications - Mobile application performance management n/a08/08/12 Servigistics PTC ERP & Business Applications - Service lifecycle management $22008/08/12 VaraLogix BMC Software Platforms, Development Tools & Deployment - Web application deployment automation n/a08/07/12 Agile Advantage Rally Software Development ERP & Business Applications - Project and portfolio lifecycle management n/a08/07/12 Argus Information & Advisory Services Insurance Services Office Financial Applications - Benchmarking and analytics for the financial services sector $42508/07/12 Consona Aptean ERP & Business Applications - ERP for the manufacturing sector n/a08/07/12 GoLightly Advanced Solutions International ERP & Business Applications - Online community collaboration for the non-profit sector n/a08/07/12 Interchain Solution Private Ltd. Harman International Industries ERP & Business Applications - Fleet management and telematics n/a08/07/12 Pattern Insight (assets) VMware Systems & Network Management - Log management platform product line n/a08/07/12 Xformity Altametrics Business Intelligence - Real-time operational business intelligence $108/06/12 Nomadvance SA Hub Telecom SA Content Management - Master data management n/a08/03/12 Springsoft Synopsys Technical & Embedded Applications - Electronic design automation $39208/02/12 Ibcos Computers Ltd. Constellation HomeBuilder Systems ERP & Business Applications - Industry-specific dealer management n/a08/01/12 CodeEval HireVue ERP & Business Applications - Applicant screening software n/a08/01/12 Frisk Software International (assets) Commtouch Software Ltd. IT Security - Antivirus business unit $408/01/12 Peter Evans & Associates Ltd. Equiniti Group Ltd. Financial Applications - Wealth management software for the financial services sector n/a08/01/12 Umbian ResMed IT Security - Web-based compliance monitoring n/a07/31/12 Pivot CME Group Financial Applications - Liquidity management for the financial sector n/a07/31/12 Wildfire Google ERP & Business Applications - Enterprise social media management $25007/30/12 Sunquest Information Systems Roper Industries ERP & Business Applications - Healthcare information systems $1,39007/30/12 Xsigo Systems Oracle Systems & Network Management - Virtualized infrastructure for cloud optimized data centers n/a07/28/12 Correlix TS-Associates plc Financial Applications - Latency management for the trading sector n/a07/27/12 intY Ltd. Weather Investments IT Security - Enterprise internet security and anti-spam n/a07/27/12 Microtrading (assets) CK Systems Ltd. ERP & Business Applications - Pegasus accounting and payroll assets n/a07/27/12 Quantitative Alpha Trading Mobile Integrated Systems Financial Applications - Proprietary trading software for the financial services sector n/a07/26/12 The Cloud Computing Centre Ltd. Six Degrees Technology Group Ltd. Platforms, Development Tools & Deployment - Infrastructure as a service n/a07/26/12 Zencoder Brightcove ERP & Business Applications - Cloud-based video and audio encoding $3007/25/12 Trestle Flurry Platforms, Development Tools & Deployment - Mobile application analytics n/a07/24/12 TransLogix Systems Pty Ltd. CargoWise Pty Ltd. ERP & Business Applications - Transportation and logistics management in Australia and New Zealand n/a07/24/12 Upside Software SciQuest ERP & Business Applications - Contract lifecycle management $2807/19/12 IBM (assets) Atego Platforms, Development Tools & Deployment - Rational Ada Developer product line assets n/a



M&A Activity

Announced Software Acquisitions: 3Q 2012 continued

($ millions)


07/19/12 Skire Oracle ERP & Business Applications - Cloud-based capital project management n/a07/18/12 BlueCielo ECM Solutions BV Gilde Equity Management Benelux BV Content Management - Engineering content management n/a07/18/12 Outright The Go Daddy Group ERP & Business Applications - Online accounting and bookkeeping for small businesses n/a07/18/12 SoftPay Solutions AlphaPoint Technology ERP & Business Applications - Online billing and customer management n/a07/18/12 Yield Software Autonomy ERP & Business Applications - Internet marketing software for advertisers and digital media agencies n/a07/17/12 Access Delta Access UK Ltd. ERP & Business Applications - Warehouse management $807/16/12 Financial Architects NV Wolters Kluwer Financial Services Financial Applications - Financial management and business intelligence for the financial sector n/a07/15/12 Axios Data EDTS IT Security - Data protection and compliance n/a07/13/12 Virtuata Cisco Systems IT Security - Virtual machine security solutions n/a07/12/12 Cassis International Pte. Ltd. Morpho SA IT Security - Mobile device security $507/12/12 Wavecom Solutions Hawaiian Telcom Platforms, Development Tools & Deployment - Infrastructure as a service $1307/10/12 Involver Oracle ERP & Business Applications - Social media management platform n/a07/10/12 LPDR Ingénierie SARL Horizontal Software SAS ERP & Business Applications - Web-based recruitment for enterprises n/a07/10/12 Sword Ciboodle Ltd. KANA Software ERP & Business Applications - Social CRM n/a07/09/12 1st Touch Ltd. Aareon AG ERP & Business Applications - Mobile workforce management for the government sector n/a07/09/12 Continuum Management Services CRT Medical Systems ERP & Business Applications - Revenue and billing management for the private practice sector n/a07/09/12 GoInstant Salesforce.com ERP & Business Applications - Web-based collaboration $7007/09/12 Internet Sheriff Technology Ltd. Total Defense IT Security - Secure content and internet threat management n/a07/09/12 TGate BridgePay Network Solutions Platforms, Development Tools & Deployment - Platform as a service for the payment processing industry n/a07/06/12 Tradar Ltd. ConvergEx Financial Applications - Portfolio management for the financial sector n/a07/05/12 PeopleCube Asure Software ERP & Business Applications - Web-based facility management $1407/03/12 ASP Line Cegedim SA ERP & Business Applications - Pharmacy operations management n/a07/03/12 Lindenhouse Software Ltd. Reckon Ltd. Content Management - Document management $2307/02/12 BreakingPoint Systems Ixia IT Security - Performance and security testing $16007/02/12 Lateral Data Xerox Litigation Services Content Management - EDiscovery and data processing $3007/02/12 Mile5 Solutions Systems America Business Intelligence - Business process management for SMBs n/a07/02/12 Sigrity Cadence Design Technical & Embedded Applications - Power and signal integrity analysis for chips, packages, and printed circuit boards $78



M&A Activity

Most Active Software Acquirers

Note: “Known acquired value” includes only transactions for which data was publicly available (2007 – 2012 YTD)

2007 – 2012 YTD ($ millions)

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware

Continued

CAConsideration Equity EnterpriseDate Target % Cash % Stock Value Value

CA Technologies Known acquired value (since 2007): $1,11707/29/11 Watchmouse B.V. - - - -06/29/11 Interactive TKO 100.0% - - $33005/16/11 SE-Consulting GmbH - - - -04/06/11 Base Technologies - - - -01/25/11 Torokina Networks - - - -09/28/10 Hyperformix - - - -08/30/10 Arcot Systems 100.0% - - $20008/12/10 4Base Technology - - - -03/10/10 Nimsoft 100.0% - - $35002/24/10 3Tera - - - -01/11/10 Oblicore 100.0% - - $2009/14/09 NetQoS 100.0% - $200 $20006/02/09 Cassatt - - - -01/05/09 Orchestria - - - -11/13/08 Eurekify - - - $1710/15/08 Optinuity - - - -10/07/08 IDFocus - - - -

Cisco Known acquired value (since 2007): $11,96103/28/12 ClearAccess - - - -10/20/11 BNI Video - - - $9908/29/11 Versly - - - -03/29/11 newScale - - - -02/04/11 Inlet Technologies 100.0% - - $9501/26/11 Pari Networks - - - -12/01/10 LineSider Technologies - - - -09/02/10 Arch Rock Corporation - - - -08/26/10 ExtendMedia - - - -05/20/10 CoreOptics 100.0% - - $9905/18/10 MOTO Development Group - - - -01/05/10 Rohati Systems - - - -11/02/09 DVN Holdings (set-top box business) - - - $4510/27/09 ScanSafe 100.0% - - $18310/13/09 Starent Networks 100.0% - $2,900 $2,51010/01/09 Tandberg 100.0% - $3,400 $3,40004/09/09 Tidal Software 100.0% - - $10503/19/09 Pure Digital Technologies - - - $59001/27/09 Richards-Zeta Building Intelligence - - - -09/19/08 Jabber - - - -08/27/08 PostPath - - - $21507/23/08 Pure Networks 100.0% - - $12006/10/08 DiviTech A/S - - - -11/01/07 Securent - - - -

Consideration Equity EnterpriseDate Target % Cash % Stock Value Value

Cisco (continued)10/23/07 Navini Networks - - - $33009/27/07 Latigent - - - -09/18/07 Cognio - - - -07/23/07 GlooLabs - - - -05/21/07 BroadWare Technologies - - - -03/28/07 SpansLogic - - - -03/15/07 WebEx 100.0% - $3,200 $3,14503/13/07 NeoPath Networks - - - $6003/05/07 Utah Street Networks (assets) - - - -02/26/07 Qovia - - - -02/21/07 Reactivity 100.0% - - $13502/09/07 Five Across - - - -01/04/07 IronPort Systems - - - $830

Dell Known acquired value (since 2007): $6,49606/25/12 Quest Software 100.0% - $2,383 $2,40804/05/12 MAKE Technologies - - - -04/03/12 Clerity Solutions - - - -04/02/12 Wyse Technology - - - -03/13/12 SonicWALL - - - $1,25002/24/12 AppAssure - - - -06/20/11 RNA Networks - - - -01/04/11 SecureWorks - - - -12/22/10 InSite One - - - -12/13/10 Compellent Technologies 100.0% - $960 $82011/02/10 Boomi - - - -07/19/10 Ocarina Networks - - - -07/01/10 Scalent - - - -02/11/10 Kace Networks 100.0% - - $12302/12/08 MessageOne 100.0% - - $15502/08/08 Exanet - - - -11/15/07 Everdream - - - -11/05/07 EqualLogic 100.0% - $1,418 $1,40008/06/07 Zing Systems - - - -08/02/07 ASAP Software - - - $34007/18/07 SilverBack Technologies - - - -

EMC Known acquired value (since 2007): $4,75405/31/12 Watch4Net Solutions - - - -05/21/12 Syncplicity - - - -05/10/12 XtremIO - - - -03/20/12 Likewise Software - - - -10/03/11 Zettapoint - - - -


M&A Activity

Most Active Software Acquirers continued

2007 – 2012 YTD ($ millions)

Continued

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware


EMC (continued)04/04/11 NetWitness - - - -11/15/10 Isilon 100.0% - $2,434 $2,25007/06/10 Greenplum 100.0% - - -01/04/10 Archer Technologies - - - -09/01/09 Kazeon Systems - - - -08/31/09 FastScale Technology - - - -06/01/09 Data Domain 100.0% - $2,378 $2,10005/27/09 Configuresoft - - - $8701/02/09 SourceLabs - - - -04/08/08 Iomega 100.0% - $213 $14804/07/08 WysDM Software - - - -04/01/08 Conchango plc 100.0% - - $8403/10/08 Infra Corporation - - - -02/21/08 Pi 100.0% - - -12/27/07 Document Sciences 100.0% - $87 $8510/30/07 Voyence - - - -10/15/07 Illuminator - - - -10/04/07 Berkeley Data Systems - - - -08/30/07 BusinessEdge Solutions - - - -08/09/07 Tablus - - - -07/19/07 X-Hive Corporation - - - -06/04/07 Verid - - - -

HP Known acquired value (since 2007): $35,74012/06/11 Hiflex Software GmbH - - - -08/18/11 Autonomy 100.0% - $11,560 $10,88905/24/11 Printelligent - - - -02/14/11 Vertica - - - -09/13/10 ArcSight 100.0% - $1,651 $1,50008/26/10 Stratavia - - - -08/23/10 3PAR 100.0% - $2,400 $2,29608/17/10 Fortify Software - - - -06/10/10 Phoenix Technologies (HyperSpace assets) 100.0% - - $1204/28/10 Palm 100.0% - $1,400 $1,19911/11/09 3Com 100.0% - $3,131 $2,70507/17/09 IBRIX - - - -06/22/09 Excellerate HRO - - - -10/01/08 LeftHand Networks 100.0% - - $36008/11/08 Colubris Networks - - - -05/13/08 Electronic Data Systems - - - $13,90003/31/08 Tower Software - - - $10001/22/08 Exstream Software - - - $72012/10/07 NUR Macroprinters 100.0% - - $118


HP (continued)11/12/07 EYP Mission Critical Facilities - - - -10/22/07 AOME - - - -09/13/07 MacDermid ColorSpan - - - -07/23/07 Neoware 100.0% - $328 $20607/23/07 Opsware 100.0% - $1,673 $1,60006/19/07 SPI Dynamics - - - $13503/22/07 Tabblo - - - -02/26/07 PolyServe - - - -02/05/07 Bristol Technology - - - -

IBM Known acquired value (since 2007): $13,40309/24/12 Butterfly Software Ltd. - - - -08/27/12 Kenexa 100.0% - $1,307 $1,28005/02/12 Tealeaf Technology - - - -04/25/12 Vivisimo - - - -04/13/12 Varicent Software - - - -01/31/12 Worklight - - - -01/04/12 Green Hat - - - -12/15/11 Emptoris - - - -12/08/11 DemandTec 100.0% - $504 $43912/05/11 Curam Software Ltd. - - - -10/11/11 Platform Computing - - - -10/04/11 Q1 Labs - - - -09/01/11 Algorithmics - - - $38708/31/11 i2 - - - -03/22/11 TRIRIGA 100.0% - - $10810/21/10 Clarity Systems Ltd. - - - -10/14/10 PSS Systems - - - -09/27/10 BLADE Network Technologies - - - -09/20/10 Netezza 100.0% - $1,836 $1,70009/15/10 OpenPages - - - -08/13/10 Unica 100.0% - $523 $48008/10/10 Datacap - - - -07/29/10 Storwize - - - -07/01/10 BigFix - - - -06/15/10 Coremetrics - - - -05/24/10 Sterling Commerce 100.0% - - $1,40005/03/10 Cast Iron Systems 100.0% - - -02/16/10 Intelliden - - - -02/03/10 Initiate Systems - - - -01/20/10 National Interest Security Company - - - -12/16/09 Lombardi - - - -11/30/09 Guardium - - - $225



M&A Activity


[a] Acquired by McAfee prior to Intel acquisitionNote: “Known acquired value” includes only transactions for which data was publicly available (2007 – 2012 YTD)

2007 – 2012 YTD ($ millions)

Continued

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware


Intel (continued)12/02/10 InternetSafety.com [a] 100.0% - $11 $1011/17/10 CognoVision - - - $1709/02/10 Neocleus - - - -08/30/10 Infineon Technologies AG (assets) 100.0% - - $1,40008/19/10 McAfee 100.0% - $7,680 $6,87608/16/10 Texas Instruments (assets) - - - -07/29/10 tenCube [a] 100.0% - $11 $1005/25/10 Trust Digital [a] 100.0% - $33 $3205/24/10 Comsys Communications - - - $3002/05/10 Virtutech - - - -08/19/09 RapidMind - - - -07/31/09 Cilk Arts - - - -07/30/09 MX Logic [a] 100.0% - $138 $16306/04/09 Wind River Systems 100.0% - $884 $71405/15/09 Solidcore Systems [a] 100.0% - $32 $4105/12/09 Endeavor Security [a] 100.0% - $3 $302/16/09 Swiftfoot Graphics AB - - - -10/15/08 NetEffect - - - $809/22/08 Secure Computing [a] 100.0% - $497 $46508/29/08 OpenedHand - - - -07/31/08 Reconnex [a] 100.0% - $40 $4505/19/08 WebVMC - - - -02/25/08 Offset Software - - - -11/28/07 Neoptica - - - -10/30/07 ScanAlert [a] 100.0% - $48 $5410/08/07 SafeBoot [a] 100.0% - $339 $350

Intuit Known acquired value (since 2007): $1,15404/23/12 Demandforce 100.0% - $424 $42404/10/12 AisleBuyer - - - -05/11/10 Medfusion 100.0% - - $9109/14/09 Mint.com 100.0% - - $17006/02/09 PayCycle 100.0% - - $17004/17/09 BooRah - - - -12/03/08 Entellium (CRM assets) 100.0% - - $812/19/07 Electronic Clearing House 100.0% - $131 $12211/26/07 Homestead Technologies 100.0% - - $170

Microsoft Known acquired value (since 2007): $18,47407/09/12 Perceptive Pixel - - - -06/25/12 Yammer 100.0% - $1,200 $1,20006/07/11 Prodiance - - - -05/10/11 Skype Global - - - $8,500


IBM (continued)10/05/09 Wilshire Credit Corporation - - - -09/22/09 RedPill Solutions - - - -07/28/09 Ounce Labs - - - -07/25/09 SPSS 100.0% - $1,170 $85905/04/09 Exeros 100.0% - - $1201/15/09 Outblaze - - - $811/18/08 Transitive - - - -07/28/08 ILOG SA 100.0% - $339 $26407/02/08 Platform Solutions - - - -04/29/08 InfoDyne - - - -04/18/08 Diligent Technologies - - - -04/10/08 FilesX - - - $5003/12/08 Encentuate - - - -01/23/08 AptSoft - - - -01/18/08 Net Integration Technologies - - - -01/02/08 XIV - - - $32512/21/07 Solid Information Technology - - - -12/06/07 Arsenal Digital Solutions - - - -11/12/07 Cognos 100.0% - $5,000 $4,96010/24/07 NovusCG - - - -08/22/07 WebDialogs - - - -08/03/07 Princeton Softech - - - -07/16/07 DataMirror 100.0% - $179 $16106/11/07 Telelogic 100.0% - $781 $74506/06/07 Watchfire - - - -04/26/07 Serbian Business Systems (assets) - - - -01/30/07 DM Information Systems - - - -01/29/07 Softek - - - -

Intel Known acquired value (since 2007): $10,66607/02/12 IDesia Ltd. - - - -04/24/12 Cray (assets) - - $140 $14001/23/12 Qlogic (InfiniBand assets) 100.0% - - $12510/04/11 NitroSecurity - - - -09/28/11 Telemap Ltd. - - - -09/14/11 CoFluent Design - - - -09/01/11 GraphTech - - - -07/19/11 Fulcrum Microsystems - - - -05/25/11 SiPort Corporation - - - -03/23/11 Sentrigo - - - $3503/14/11 SySDSoft - - - -02/14/11 Silicon Hive BV - - - -01/04/11 Nordic Edge AB - - - $37


M&A Activity


[a] Acquired by Sun Microsystems prior to Oracle acquisitionNote: “Known acquired value” includes only transactions for which data was publicly available (2007 – 2012 YTD)

2007 – 2012 YTD ($ millions)

Continued

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware


Microsoft (continued)10/29/10 Canesta - - - -10/06/10 AVIcode - - - -12/11/09 Opalis Software - - - -12/10/09 Sentillion - - - -11/09/09 SourceGear (Teamprise assets) - - - -09/22/09 Computer Generated Solutions (assets) - - - -09/22/09 Fullscope (assets) - - - -09/22/09 LS Retail EHF (assets) - - - -09/22/09 To-Increase Denmark A/S (assets) - - - -09/21/09 Interactive Supercomputing - - - -08/06/09 Office.com - - - -06/01/09 Rosetta Biosoftware - - - -05/07/09 BigPark - - - -02/21/09 3DV Systems - - - -10/31/08 Wysiwyg Comunicacion Interactiva - - - -08/29/08 Greenfield Online 100.0% - $486 $45507/24/08 DATAllegro - - - -07/14/08 Zoomix - - - -07/01/08 Powerset 100.0% - - -06/26/08 MobiComp - - - -06/18/08 Navic Networks - - - -04/17/08 Farecast - - - -03/31/08 90 Degree Software - - - -03/20/08 Komoku - - - -03/14/08 Rapt - - - -03/12/08 Kidaro - - - $10002/27/08 YaData - - - $2502/11/08 Danger 100.0% - - $50002/07/08 Caligari Corporation - - - -01/21/08 Calista Technologies - - - $12501/08/08 Fast Search & Transfer 100.0% - $1,289 $1,20012/12/07 Multimap - - - -11/30/07 Webfives - - - -11/12/07 Musiwave - - - $5010/29/07 GCS (assets) - - - -10/02/07 Jellyfish.com - - - -08/29/07 Parlano - - - -07/26/07 AdECN - - - -06/08/07 Stratature - - - -06/05/07 Engyro - - - -05/18/07 aQuantive 100.0% - $6,370 $6,31905/03/07 ScreenTonic - - - -03/28/07 devBiz Business Solutions - - - -


Microsoft (continued)03/14/07 eBECS (assets) - - - -03/14/07 Tellme Networks - - - -

Oracle Known acquired value (since 2007): $18,92509/17/12 SelectMinds - - - -07/30/12 Xsigo Systems - - - -07/19/12 Skire - - - -07/10/12 Involver - - - -06/05/12 Collective Intellect - - - -05/23/12 Vitrue - - - -02/09/12 Taleo 100.0% - $1,900 $2,01010/24/11 RightNow Technologies 100.0% - $1,500 $1,43410/18/11 Endeca Technologies - - - -09/22/11 GoAhead Software - - - -07/28/11 InQuira - - - -07/21/11 Ksplice - - - -06/30/11 Pillar Data Systems - - - -06/21/11 FatWire Software - - - -06/20/11 Datanomic - - - -11/02/10 Art Technology Group 100.0% - $1,000 $81710/05/10 Passlogix - - - -05/26/10 eServGlobal (pre-paid software assets) - - - -05/25/10 Market2Lead (assets) - - - -05/20/10 Secerno - - - -04/16/10 Phase Forward 100.0% - $755 $71402/10/10 Convergin - - - -02/08/10 AmberPoint - - - -01/04/10 Silver Creek Systems - - - -10/12/09 Sophoi - - - -09/29/09 HyperRoll - - - -07/23/09 GoldenGate Software - - - -06/17/09 Conformia - - - -05/13/09 Virtual Iron - - - -04/20/09 Sun Microsystems 100.0% - $7,400 $5,66703/23/09 Relsys International - - - -02/04/09 mValent - - - -01/07/09 Q-layers [a] - - - -11/03/08 Tacit Software - - - -10/29/08 Haley Ltd. - - - $10010/08/08 Primavera Systems - - - -10/01/08 Advanced Visual Technology - - - $509/02/08 ClearApp - - - -07/31/08 Global Knowledge Software - - - -


M&A Activity


2007 – 2012 YTD ($ millions)

[a] Acquired by Sun Microsystems prior to Oracle acquisitionNote: “Known acquired value” includes only transactions for which data was publicly available (2007 – 2012 YTD)

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware


Oracle (continued)06/23/08 Skywire Software - - - -05/13/08 AdminServer - - - -04/25/08 Montalvo Systems [a] - - - $2504/09/08 Auptyma - - - -03/27/08 Empirix (e-TEST software) - - - -02/12/08 innotek [a] - - - -01/16/08 BEA Systems 100.0% - $8,352 $6,85201/16/08 Captovation - - - -01/16/08 MySQL [a] - - - $1,00012/06/07 Moniforce - - - -11/13/07 Vaau [a] - - - -10/24/07 Interlace Systems - - - -10/09/07 LogicalApps - - - -09/12/07 Cluster File Systems [a] - - - -09/02/07 Netsure Telecom - - - -08/31/07 Bridgestream - - - -07/18/07 Bharosa - - - -05/15/07 Agile Software 100.0% - $495 $30105/01/07 Revenue Technologies - - - -04/24/07 Lodestar - - - -04/18/07 AppForge - - - -04/12/07 SavaJe Technologies [a] - - - -

Salesforce.com Known acquired value (since 2007): $1,60507/09/12 GoInstant - - $70 $7006/25/12 Thinkfuse - - - -06/18/12 ChoicePass - - - -06/04/12 Buddy Media - - - $68905/01/12 Stypi - - - -12/15/11 Rypple - - - -11/14/11 Model Metrics 100.0% - - $5809/21/11 Assistly 100.0% - - $5008/26/11 Navajo Systems - - - -03/30/11 Radian6 84.7% 15.3% - $32602/01/11 Manymoon - - - -01/06/11 Dimdim 100.0% - - $3112/21/10 Etacts - - - -12/08/10 Heroku 100.0% - - $21209/24/10 Activa Live - - - -06/04/10 Sitemasher - - - -04/21/10 Jigsaw Data Corporation 100.0% - - $14201/21/10 Informavores - - - -12/11/09 GroupSwim - - - -


Salesforce.com (continued)08/04/08 InStranet - - $32 $2710/23/07 CrispyNews - - - -04/10/07 Koral - - - -

SAP Known acquired value (since 2007): $19,99505/22/12 Ariba 100.0% - $4,500 $4,26704/30/12 Purisma 100.0% - $2 $204/10/12 Syclo - - - -01/16/12 Datango AG (assets) - - - -12/03/11 SuccessFactors 100.0% - $3,650 $3,40009/20/11 Crossgate AG - - - -09/06/11 Right Hemisphere - - - -01/12/11 SECUDE AG (IdM assets) - - - -12/16/10 cundus AG (disclosure management assets) - - - -05/12/10 Sybase 100.0% - $6,100 $5,80004/21/10 TechniData AG - - - -12/03/09 SOALogix - - - -07/20/09 SAF Simulation, Analysis & Forecasting 100.0% - $91 $4906/10/09 SkyData Systems - - - -05/11/09 Clear Standards - - - -05/06/09 Highdeal - - - -02/18/09 Coghead - - - -07/10/08 Ness Technologies (SAP distribution division) - - - $2106/17/08 Visiprise - - - -10/17/07 YASU Technologies - - - -10/07/07 Business Objects 100.0% - $6,770 $6,45505/14/07 MaXware - - - -05/14/07 Wicom Communications - - - -05/08/07 OutlookSoft - - - -02/20/07 Pilot Software - - - -

Symantec Known acquired value (since 2007): $4,51503/20/12 Nukona - - - -03/05/12 Odyssey Software - - - -01/16/12 LiveOffice - - - $11505/19/11 Clearwell Systems - - $410 $39005/19/10 VeriSign (identity & authentication assets) 100.0% - - $1,28004/29/10 GuardianEdge 100.0% - - $7304/29/10 PGP Corporation 100.0% - - $30001/12/10 Gideon Technology - - - -11/01/09 SoftScan - - - -04/21/09 Mi5 Networks - - - $1810/08/08 MessageLabs 100.0% - - $695

Continued


M&A Activity



2007 – 2012 YTD ($ millions)

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware


Symantec (continued)08/18/08 PC Tools 100.0% - - $25008/05/08 nSuite Technologies 100.0% - - $2006/06/08 SwapDrive 100.0% - - $12304/09/08 AppStream 100.0% - - $5201/02/08 Transparent Logic 100.0% - - $1211/05/07 Vontu 100.0% - - $35002/23/07 4FrontSecurity 100.0% - - $701/29/07 Altiris 100.0% - $1,030 $830

VMware Known acquired value (since 2007): $1,05508/07/12 Pattern Insight (assets) - - - -05/22/12 Wanova - - - $7504/24/12 Cetas Software - - - -08/26/11 PacketMotion - - - -06/13/11 Digital Fuel Technologies - - - -05/31/11 Socialcast - - - -05/16/11 Shavlik Technologies - - - -04/26/11 SlideRocket - - - -03/08/11 WaveMaker - - - -01/14/11 NeoAccel 100.0% - - $1508/31/10 Integrien - - - $10008/31/10 TriCipher - - - -05/06/10 GemStone Systems - - - -04/13/10 Rabbit Technologies 100.0% - - -02/25/10 EMC (Ionix software assets) 100.0% - - $20002/23/10 RTO Software - - - -01/12/10 Zimbra 100.0% - - $10008/10/09 SpringSource 86.2% 13.8% $362 $42011/26/08 Tungsten Graphics - - - -11/10/08 Trango Virtual Processors - - - -10/09/08 Blue Lane Technologies - - - -05/28/08 B-hive Networks - - - $6101/15/08 Thinstall - - - -01/14/08 Foedus - - - -10/01/07 Sciant - - - $909/11/07 Dunes Technologies 100.0% - - $4508/07/07 Determina 100.0% - - $9



Public Equity Market Valuations Overview

Mean Valuations by SegmentNotable Software Vendor Performance Trends ($ millions, except per share)

Notes:[a] Over 25% revenue growth projected for CY13[b] Over 40% EBITDA margin projected for CY12Source: Company releases, Wall Street research

EV / Revenue EV / EBITDA

Segment CY12E CY13E CY12E CY13E

High Growth Companies [a] 9.4 x 6.8 x 35.8 x 28.6 x

Systems & Network Management 7.6 5.8 13.7 11.1

Human Capital Management 7.3 5.3 31.4 20.4

Software-as-a-Service 6.8 5.2 29.0 24.3

Highly-Profitable Companies [b] 5.5 4.9 11.4 9.9

ERP & Business Applications 5.2 4.2 22.8 21.8

Business Intelligence 4.6 3.7 29.1 20.3

Platforms, Development Tools & Deployment 4.0 3.6 15.8 13.5

IT Security Management 4.1 3.5 12.2 17.2

Network Infrastructure 4.3 3.3 10.4 25.0

Financial Applications 3.5 3.2 14.2 11.2

Technical & Embedded Applications 3.2 2.9 10.5 9.1

Application Delivery & Network Acceleration 3.2 2.7 12.5 10.1

Content Management 2.4 2.2 11.7 9.8

Global Diversified 2.2 2.0 6.4 5.9

Storage Management 2.3 2.0 18.2 14.3

Industry Mean 4.3 x 3.6 x 15.3 x 14.7 x

Industry Median 3.0 2.8 11.5 10.4

Share Price % of Share Price Market Enterprise

Company (09/30/12) 52-Wk High y/y Value Value

Dassault Systemes 105.12 97% 54% 13,186 11,441

SAP AG 71.33 97% 41% 85,115 84,872

Citrix Systems 76.53 87% 40% 14,510 12,802

Red Hat 56.94 91% 35% 11,043 9,683

Adobe 32.43 93% 34% 16,077 14,341

Salesforce.com 152.69 93% 34% 21,446 20,200

CA Technologies 25.77 92% 33% 12,099 10,856

EMC 27.27 91% 30% 62,253 52,449

NASDAQ 3,116.23 97% 29% - -

Intuit 58.88 94% 24% 17,687 17,367

Cisco Systems 19.09 90% 23% 101,229 68,856

VMware 96.74 81% 20% 41,888 36,991

Microsoft 29.76 90% 20% 249,652 199,744

IBM 207.45 98% 19% 239,490 260,830

Symantec 17.97 92% 10% 12,918 11,935

Oracle 31.46 93% 9% 155,349 138,920

Intel 22.65 77% 6% 113,880 110,794

NetApp 32.88 70% -3% 12,063 7,838

Hewlett Packard 17.06 57% -24% 33,581 54,225

Dell 9.85 54% -30% 17,102 10,914



Equity Trading Multiples by Growth TrancheMarket Valuations of Publicly-Traded Software Companies by Growth Tranche Forward Year Median EV / Revenue by Growth Tranche

Forward Year Median P/E by Growth Tranche

Revenue Mean EV/Revenue Median EV/Revenue Mean P/E Median P/E

Growth Date CY FY CY FY CY FY CY FY

< 5% 3Q 2012 1.8 x 1.8 x 1.9 x 1.9 x 14.2 x 12.3 x 12.8 x 11.5 x2Q 2012 1.8 1.7 1.9 1.8 13.4 11.4 12.2 10.91Q 2012 2.3 2.2 2.2 2.1 13.8 12.6 13.6 12.34Q 2011 2.1 2.0 2.0 1.9 14.0 13.1 13.7 12.13Q 2011 1.8 1.7 1.9 1.8 11.1 11.1 11.2 10.42Q 2011 2.4 2.3 2.6 2.5 12.9 11.7 13.9 12.41Q 2011 2.2 2.2 2.5 2.4 12.5 11.5 13.2 12.44Q 2010 2.6 2.7 2.4 2.4 19.9 18.7 18.7 16.23Q 2010 2.3 2.2 2.1 2.0 17.1 16.3 14.3 13.82Q 2010 2.3 2.3 2.0 2.0 16.4 14.8 14.9 14.31Q 2010 2.1 2.1 2.3 2.2 14.6 13.4 13.2 13.34Q 2009 1.9 1.8 2.0 1.9 16.4 17.8 14.8 14.7

5 - 10% 3Q 2012 2.7 x 2.5 x 2.4 x 2.2 x 21.6 x 16.9 x 18.0 x 15.2 x2Q 2012 2.7 2.5 2.4 2.3 17.1 13.9 15.6 13.41Q 2012 3.0 2.7 2.5 2.3 16.9 14.6 17.3 15.14Q 2011 2.3 2.1 2.1 2.0 17.6 13.4 14.7 11.53Q 2011 2.2 2.0 2.1 1.9 15.9 12.3 13.0 11.22Q 2011 2.6 2.4 2.4 2.2 18.0 14.3 16.3 14.61Q 2011 2.9 2.6 2.5 2.3 20.2 16.5 18.6 15.64Q 2010 2.9 2.7 2.7 2.5 17.7 14.8 17.1 14.33Q 2010 2.6 2.4 2.5 2.4 17.3 14.4 15.8 14.32Q 2010 2.4 2.2 2.3 2.2 16.7 15.0 15.9 13.71Q 2010 2.4 2.2 2.1 2.0 20.4 18.6 17.7 15.64Q 2009 2.9 2.7 2.9 2.7 23.5 22.2 19.9 17.0

10 - 20% 3Q 2012 3.9 x 3.4 x 3.3 x 2.9 x 28.6 x 23.1 x 25.8 x 21.3 x2Q 2012 3.6 3.1 2.7 2.4 25.7 20.9 22.7 19.41Q 2012 4.1 3.6 3.3 2.8 30.9 25.6 28.6 22.44Q 2011 3.4 3.0 2.9 2.6 27.1 21.2 24.5 20.33Q 2011 3.1 2.7 2.5 2.3 24.5 18.6 20.7 16.82Q 2011 4.3 3.7 3.7 3.3 33.0 26.0 27.9 22.31Q 2011 4.4 3.9 3.9 3.5 32.0 27.2 27.3 22.44Q 2010 3.8 3.3 3.7 3.2 32.3 26.9 26.6 22.43Q 2010 3.7 3.3 3.3 2.9 34.4 26.6 28.0 22.02Q 2010 3.1 2.7 2.5 2.3 26.8 24.0 22.8 19.61Q 2010 3.6 3.2 3.4 3.0 27.9 23.9 25.9 20.14Q 2009 4.0 3.5 3.5 3.0 34.3 28.2 29.7 24.0

> 20% 3Q 2012 7.9 x 6.0 x 6.7 x 5.3 x 54.9 x 52.1 x 52.8 x 49.9 x2Q 2012 6.4 5.0 6.0 4.9 51.0 48.4 49.4 39.11Q 2012 6.4 5.0 6.1 5.0 46.8 38.2 37.2 31.14Q 2011 6.4 5.0 6.4 5.0 48.3 35.9 41.9 33.33Q 2011 5.2 4.1 4.8 3.9 47.0 79.8 43.3 33.02Q 2011 6.6 5.4 6.7 5.5 44.7 39.1 45.2 39.11Q 2011 6.6 5.4 7.2 5.9 58.2 45.4 54.2 42.14Q 2010 7.3 5.7 7.2 6.0 52.5 42.2 52.0 37.03Q 2010 6.5 5.2 7.2 5.7 48.9 38.1 49.7 36.12Q 2010 5.0 4.0 4.9 3.8 42.5 29.6 39.7 27.71Q 2010 4.7 3.8 4.1 3.3 46.2 31.2 42.8 32.84Q 2009 5.8 4.6 5.0 4.1 42.9 32.9 37.6 33.3

-

1x

2x

3x

4x

5x

6x

7x

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2008 2009 2010 2011 2012

> 20% growth

10 - 20% growth

5 - 10% growth

< 5% growth

-

10x

20x

30x

40x

50x

60x

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q

2008 2009 2010 2011 2012



Equity Trading Multiples by Segment

Notes:[a] Wall Street consensus estimates[b] EV/EBITDA multiples in excess of 50x or less than 0x and P/E multiples in excess of 100x or less than 0x are considered to be not meaningful[c] Acquisition pendingSource: Company releases, Wall Street research

($ millions)

Business Intelligence

Global Diversified

Application Delivery & Network Acceleration

Content Management

ERP & Business Applications

Financial Applications

Human Capital Management

IT Security Management

Network Infrastructure

Platforms, Development Tools & Deployment

Storage Management

Systems & Network Management

Technical & Embedded Applications

High Growth

Highly-Profitable

Software-as-a-Service

Share Price Market Enterprise Projected Revenue [a] EV / Revenue Projected EBITDA [a] EV / EBITDA [b] Projected EPS [a] P/E Multiple [b]

Company (09/30/12) Value Value CY12E CY13E y/y CY12E CY13E CY12E mgn CY13E mgn CY12E CY13E CY12E CY13E y/y CY12E CY13E

Global Diversified

Microsoft 29.76$ 249,652$ 199,744$ 75,059$ 83,893$ 12% 2.7 x 2.4 x 30,938$ 41% 36,100$ 43% 6.5 x 5.5 x 2.65$ 3.24$ 22% 11.2 x 9.2 x

IBM 207.45 239,490 260,830 105,814 108,242 2% 2.5 2.4 26,733 25% 28,666 26% 9.8 9.1 14.96 16.66 11% 13.9 12.5

Oracle 31.46 155,349 138,920 37,355 39,441 6% 3.7 3.5 18,040 48% 19,650 50% 7.7 7.1 2.48 2.77 12% 12.7 11.4

Intel 22.65 113,880 110,794 53,419 55,751 4% 2.1 2.0 21,664 41% 23,473 42% 5.1 4.7 2.08 2.18 5% 10.9 10.4

Cisco Systems 19.09 101,229 68,856 47,108 50,448 7% 1.5 1.4 15,191 32% 15,914 32% 4.5 4.3 1.86 2.03 9% 10.2 9.4

SAP AG 71.33 85,115 84,872 20,753 22,782 10% 4.1 3.7 7,975 38% 9,122 40% 10.6 9.3 4.08 4.58 12% 17.5 15.6

EMC 27.27 62,253 52,449 22,033 24,362 11% 2.4 2.2 6,603 30% 6,808 28% 7.9 7.7 1.71 1.96 15% 15.9 13.9

Hewlett Packard 17.06 33,581 54,225 120,366 120,100 0% 0.5 0.5 15,912 13% 15,088 13% 3.4 3.6 4.05 4.22 4% 4.2 4.0

Dell 9.85 17,102 10,914 58,082 57,545 -1% 0.2 0.2 5,020 9% 5,136 9% 2.2 2.1 1.72 1.79 4% 5.7 5.5

Mean 59,999$ 62,507$ 6% 2.2 x 2.0 x 16,453$ 31% 17,773$ 31% 6.4 x 5.9 x 3.95$ 4.38$ 10% 11.4 x 10.2 x

Median 53,419 55,751 6% 2.4 2.2 15,912 32% 15,914 32% 6.5 5.5 2.48 2.77 11% 11.2 10.4


Citrix Systems 76.53$ 14,510$ 12,802$ 2,542$ 2,930$ 15% 5.0 x 4.4 x 772$ 30% 983$ 34% 16.6 x 13.0 x 2.61$ 3.20$ 23% 29.4 x 23.9 x

F5 Networks 104.64 8,300 7,193 1,428 1,665 17% 5.0 4.3 576 40% 682 41% 12.5 10.5 4.58 5.40 18% 22.8 19.4

Akamai Technologies 38.26 6,893 5,875 1,353 1,548 14% 4.3 3.8 583 43% 676 44% 10.1 8.7 1.65 1.96 19% 23.2 19.5

Riverbed Technology 23.28 3,753 3,203 830 955 15% 3.9 3.4 234 28% 279 29% 13.7 11.5 0.94 1.15 22% 24.7 20.3

Radware 36.02 821 571 190 214 13% 3.0 2.7 43 23% 51 24% 13.3 11.2 1.72 2.04 18% 20.9 17.7

Brightcove 11.68 345 287 82 106 29% 3.5 2.7 (8) nm 2 2% nm nm (0.50) (0.16) nm nm nm

RealNetworks 8.32 291 10 255 242 -5% 0.0 0.0 (4) nm n/a n/a nm nm (0.89) (0.58) nm nm nm

Limelight Networks 2.34 236 114 183 201 10% 0.6 0.6 13 7% 20 10% 8.7 5.8 (0.17) (0.11) nm nm nm

Mean 858$ 983$ 13% 3.2 x 2.7 x 276$ 29% 385$ 26% 12.5 x 10.1 x 1.24$ 1.61$ 20% 24.2 x 20.2 x

Median 542 598 15% 3.7 3.0 138 29% 279 29% 12.9 10.9 1.30 1.55 19% 23.2 19.5


Qlik Technologies 22.39$ 1,984$ 1,789$ 379$ 460$ 22% 4.7 x 3.9 x 42$ 11% 70$ 15% 42.7 x 25.7 x 0.28$ 0.46$ 65% 80.5 x 48.8 x

MicroStrategy 134.07 1,525 1,329 617 670 9% 2.2 2.0 62 10% 80 12% 21.3 16.6 2.96 4.26 44% 45.3 31.4

Bazaarvoice 15.15 1,179 1,036 139 185 33% 7.4 5.6 (25) nm (13) nm nm nm (0.51) (0.30) nm nm nm

PROS 19.07 535 464 115 136 18% 4.0 3.4 20 17% 25 18% 23.1 18.5 0.39 0.50 28% 48.3 37.8

Mean 312$ 363$ 20% 4.6 x 3.7 x 25$ 13% 40$ 15% 29.1 x 20.3 x 0.78$ 1.23$ 46% 58.0 x 39.4 x

Median 259 323 20% 4.4 3.6 31 11% 47 15% 23.1 18.5 0.34 0.48 44% 48.3 37.8

Content Management

Adobe 32.43$ 16,077$ 14,341$ 4,369$ 4,485$ 3% 3.3 x 3.2 x 1,818$ 42% 1,896$ 42% 7.9 x 7.6 x 2.31$ 2.35$ 2% 14.0 x 13.8 x

Open Text 55.14 3,249 3,285 1,320 1,457 10% 2.5 2.3 371 28% 409 28% 8.8 8.0 4.72 5.54 17% 11.7 9.9

IntraLinks 6.54 363 369 198 213 7% 1.9 1.7 32 16% 37 17% 11.6 9.9 0.07 0.15 103% 90.8 44.8

Guidance Software 11.26 287 264 130 152 17% 2.0 1.7 14 11% 19 13% 18.3 13.8 0.37 0.49 32% 30.2 22.8

Mean 1,504$ 1,576$ 9% 2.4 x 2.2 x 559$ 24% 590$ 25% 11.7 x 9.8 x 1.87$ 2.13$ 39% 36.7 x 22.8 x

Median 759 835 9% 2.3 2.0 202 22% 223 23% 10.2 9.0 1.34 1.42 25% 22.1 18.3



Equity Trading Multiples by Segment continued

($ millions)


Global Diversified


Content Management







Storage Management



High Growth

Highly-Profitable






Salesforce.com 152.69$ 21,446$ 20,200$ 3,013$ 3,840$ 27% 6.7 5.3 x 500$ 17% 709$ 18% 40.4 28.5 x 1.45$ 2.01$ 39% nm x 76.0 x

Sage Group 5.07 6,648 6,453 2,170 2,300 6% 3.0 2.8 651 30% 675 29% 9.9 9.6 0.33 0.36 10% 15.4 14.0

NetSuite 63.80 4,689 4,524 301 376 25% 15.0 12.0 27 9% 44 12% nm nm 0.18 0.34 96% nm nm

Ariba [c] 44.80 4,584 4,327 547 644 18% 7.9 6.7 127 23% 155 24% 34.1 27.9 0.99 1.24 25% 45.3 36.2

Concur 73.73 4,469 3,989 463 582 26% 8.6 6.9 109 24% 147 25% 36.6 27.2 0.89 1.21 36% 82.8 60.8

Constellation Software 105.56 2,237 2,218 854 967 13% 2.6 2.3 184 22% 213 22% 12.1 10.4 7.28 8.31 14% 14.5 12.7

Guidewire Software 31.05 1,860 1,655 246 306 24% 6.7 5.4 14 6% 39 13% nm 43.0 0.11 0.36 219% nm 86.7

ExactTarget 24.22 1,740 1,530 279 340 22% 5.5 4.5 10 3% 19 5% nm nm (0.69) (0.12) nm nm nm

JDA Software 31.78 1,365 1,276 694 746 7% 1.8 1.7 183 26% 202 27% 7.0 6.3 2.22 2.43 10% 14.3 13.1

Manhattan Associates 57.27 1,188 1,087 363 406 12% 3.0 2.7 85 23% 100 25% 12.8 10.9 2.50 2.97 19% 22.9 19.3

Medidata Solutions 41.50 1,099 985 216 249 16% 4.6 3.9 50 23% 54 22% 19.7 18.3 1.11 1.48 34% 37.5 28.0

Blackbaud 23.92 1,083 1,321 465 541 16% 2.8 2.4 96 21% 115 21% 13.8 11.4 0.93 1.30 40% 25.7 18.4

Jive Software 15.71 1,064 899 111 153 38% 8.1 5.9 (18) nm 1 1% nm nm (0.44) (0.15) nm nm nm

Deltek [c] 13.02 912 1,024 369 411 11% 2.8 2.5 98 27% 98 24% 10.4 10.5 0.62 0.77 24% 21.1 16.9

Synchronoss Technologies 22.90 906 793 273 341 25% 2.9 2.3 83 30% 109 32% 9.5 7.3 1.05 1.33 27% 21.8 17.2

Eloqua 19.75 731 728 91 112 23% 8.0 6.5 (5) nm 3 3% nm nm (0.24) (0.05) nm nm nm

Responsys 10.23 551 452 162 197 22% 2.8 2.3 25 16% 35 18% 18.0 12.8 0.20 0.29 41% 49.9 35.5

Constant Contact 17.40 538 457 253 303 20% 1.8 1.5 37 15% 51 17% 12.4 9.0 0.55 0.84 54% 31.8 20.6

SPS Commerce 38.47 507 472 75 97 29% 6.3 4.9 8 10% 13 13% nm 37.0 0.37 0.54 47% nm 71.8

Vocus 20.06 420 472 171 208 21% 2.8 2.3 15 9% 25 12% 32.0 18.9 0.36 0.65 79% 55.7 31.1

SciQuest 18.20 413 349 67 91 36% 5.2 3.8 10 15% 17 19% 35.5 20.3 0.23 0.41 82% 80.2 44.0

E2open 13.58 352 354 74 85 15% 4.8 4.1 0 0% 3 4% nm nm n/a (0.00) nm nm nm

ClickSoftware 7.70 248 199 99 116 18% 2.0 1.7 9 9% 19 16% 22.1 10.5 0.32 0.48 52% 24.4 16.0

Mean 494$ 583$ 20% 5.0 x 4.1 x 100$ 17% 124$ 17% 20.4 x 17.8 x 0.92$ 1.17$ 50% 36.2 x 34.4 x

Median 273 340 21% 4.6 3.8 37 17% 51 18% 15.9 12.1 0.46 0.65 39% 25.7 24.3


Intuit 58.88$ 17,687$ 17,367$ 4,354$ 4,756$ 9% 4.0 x 3.7 x 1,687$ 39% 1,847$ 39% 10.3 x 9.4 x 3.06$ 3.43$ 12% 19.2 x 17.2 x

Fiserv 74.03 10,160 13,273 4,537 4,725 4% 2.9 2.8 1,490 33% 1,541 33% 8.9 8.6 5.11 5.77 13% 14.5 12.8

FIS 31.22 9,435 13,907 5,862 6,073 4% 2.4 2.3 1,753 30% 1,864 31% 7.9 7.5 2.43 2.77 14% 12.8 11.3

Verisk Analytics 47.61 8,324 9,478 1,522 1,697 11% 6.2 5.6 680 45% 769 45% 13.9 12.3 1.95 2.26 16% 24.4 21.1

MSCI 35.79 4,410 4,927 952 1,025 8% 5.2 4.8 433 46% 476 46% 11.4 10.4 1.99 2.21 11% 18.0 16.2

Jack Henry 37.85 3,261 3,235 1,059 1,131 7% 3.1 2.9 347 33% 377 33% 9.3 8.6 1.83 2.03 11% 20.7 18.7

SS&C Technologies 25.21 2,145 3,157 556 719 29% 5.7 4.4 212 38% 268 37% 14.9 11.8 1.34 1.59 19% 18.9 15.8

Fair Isaac 44.26 1,540 1,877 649 717 10% 2.9 2.6 180 28% 207 29% 10.4 9.0 2.49 3.16 27% 17.8 14.0

Advent Software 24.57 1,288 1,205 359 391 9% 3.4 3.1 99 28% 107 27% 12.1 11.2 0.99 1.13 14% 24.8 21.8

IRESS Market Technology 7.72 981 930 215 227 6% 4.3 4.1 78 36% 84 37% 11.9 11.1 0.41 0.43 5% 18.7 17.9

SimCorp 213.66 931 860 268 294 9% 3.2 2.9 69 26% 77 26% 12.5 11.1 10.86 12.69 17% 19.7 16.8

Bottomline Technologies 24.69 920 795 238 262 10% 3.3 3.0 40 17% 49 19% 19.8 16.2 0.88 1.07 22% 28.2 23.1

Fidessa 23.78 881 800 461 496 8% 1.7 1.6 105 23% 110 22% 7.7 7.3 1.25 1.38 11% 19.0 17.2

ServiceSource 10.28 812 698 246 299 22% 2.8 2.3 14 6% 28 9% 48.4 25.0 0.05 0.13 191% nm 78.4

Envestnet 11.70 390 318 155 200 29% 2.1 1.6 23 15% 39 19% 13.9 8.3 0.29 0.58 102% 40.6 20.0

Mean 1,429$ 1,534$ 12% 3.5 x 3.2 x 481$ 29% 523$ 30% 14.2 x 11.2 x 2.33$ 2.71$ 32% 21.2 x 21.5 x

Median 556 717 9% 3.2 2.9 180 30% 207 31% 11.9 10.4 1.83 2.03 14% 19.1 17.2




($ millions)


Global Diversified


Content Management







Storage Management



High Growth

Highly-Profitable






Ultimate Software 102.10 2,733 2,671 330 404 23% 8.1 6.6 61 19% 88 22% 43.6 30.3 0.95 1.44 51% nm 71.0

Cornerstone OnDemand 30.66 1,605 1,543 116 166 43% 13.3 9.3 (9) nm 0 0% nm nm (0.27) (0.10) nm nm nm

Kenexa [c] 45.83 1,287 1,230 361 421 17% 3.4 2.9 59 16% 75 18% 20.7 16.5 1.06 1.38 30% 43.2 33.2

Mean 269$ 330$ 27% 8.3 x 6.3 x 37$ 17% 54$ 13% 32.2 x 23.4 x 0.58$ 0.91$ 41% 43.2 x 52.1 x

Median 330 404 23% 8.1 6.6 59 17% 75 18% 32.2 23.4 0.95 1.38 41% nm 52.1


Symantec 17.97$ 12,918$ 11,935$ 6,710$ 6,934$ 3% 1.8 x 1.7 x 2,098$ 31% 2,297$ 33% 5.7 x 5.2 x 1.54$ 1.72$ 11% 11.7 x 10.5 x

Check Point 48.16 10,090 6,969 1,359 1,479 9% 5.1 4.7 807 59% 881 60% 8.6 7.9 3.15 3.53 12% 15.3 13.7

Verisign 48.69 8,480 7,142 880 975 11% 8.1 7.3 526 60% 599 61% 13.6 11.9 1.89 2.26 20% 25.8 21.5

Fortinet 24.12 4,043 3,399 524 625 19% 6.5 5.4 136 26% 167 27% 24.9 20.4 0.53 0.62 19% 45.8 38.6

Trend Micro 27.95 3,677 2,055 1,220 1,240 2% 1.7 1.7 370 30% 404 33% 5.6 5.1 1.54 1.57 2% 18.2 17.7

Sourcefire 49.03 1,505 1,323 208 257 24% 6.4 5.1 39 19% 56 22% 34.0 23.8 0.70 0.96 37% 70.0 51.0

Imperva 36.99 915 814 99 123 24% 8.2 6.6 (3) nm 9 7% nm 88.9 (0.17) 0.31 nm nm nm

Websense 15.65 569 577 361 373 3% 1.6 1.5 89 25% 94 25% 6.5 6.1 1.46 1.64 12% 10.7 9.5

Proofpoint 14.85 530 453 103 121 18% 4.4 3.7 (7) nm (1) nm nm nm (0.42) (0.21) nm nm nm

AVG Technologies 9.60 522 586 320 365 14% 1.8 1.6 95 30% 114 31% 6.2 5.1 0.96 1.21 26% 10.0 7.9

Vasco Data Security 9.38 371 286 175 185 6% 1.6 1.5 31 18% 37 20% 9.3 7.8 0.50 0.62 23% 18.6 15.1

F-Secure 2.21 351 319 203 225 11% 1.6 1.4 42 21% 49 22% 7.6 6.5 0.14 0.15 10% 15.8 14.3

Mean 1,013$ 1,075$ 12% 4.1 x 3.5 x 352$ 32% 392$ 31% 12.2 x 17.2 x 0.99$ 1.20$ 17% 24.2 x 20.0 x

Median 341 369 11% 3.1 2.7 92 28% 104 27% 8.1 7.8 0.83 1.09 16% 17.0 14.7


Juniper Networks 17.11$ 9,035$ 5,762$ 4,238$ 4,675$ 10% 1.4 x 1.2 x 842$ 20% 1,176$ 25% 6.8 x 4.9 x 0.71$ 1.11$ 57% 24.2 x 15.4 x

Palo Alto Networks 61.57 4,440 4,117 311 459 47% 13.2 9.0 19 6% 56 12% nm 73.3 0.14 0.29 109% nm nm

Brocade 5.92 2,761 2,810 2,215 2,319 5% 1.3 1.2 512 23% 566 24% 5.5 5.0 0.53 0.62 17% 11.1 9.5

Aruba Networks 22.48 2,725 2,409 560 663 18% 4.3 3.6 128 23% 155 23% 18.9 15.5 0.69 0.87 27% 32.8 25.8

Infoblox 23.25 1,281 1,123 180 218 21% 6.3 5.2 10 5% 19 9% nm 59.6 0.03 0.16 405% nm nm

Acme Packet 17.10 1,177 782 271 303 12% 2.9 2.6 56 21% 72 24% 14.1 10.8 0.45 0.54 20% 38.1 31.8

Extreme Networks 3.35 318 165 323 335 4% 0.5 0.5 24 8% 27 8% 6.8 6.1 0.21 0.24 12% 15.9 14.1

Mean 1,157$ 1,282$ 17% 4.3 x 3.3 x 227$ 15% 296$ 18% 10.4 x 25.0 x 0.39$ 0.55$ 92% 24.4 x 19.3 x

Median 323 459 12% 2.9 2.6 56 20%nm 72 23% 6.8 10.8 0.45 0.54 27% 24.2 15.4


Red Hat 56.94$ 11,043$ 9,683$ 1,264$ 1,487$ 18% 7.7 x 6.5 x 359$ 28% 441$ 30% 27.0 x 22.0 x 1.11$ 1.32$ 19% 51.2 x 43.0 x

TIBCO Software 30.22 5,182 5,734 1,043 1,186 14% 5.5 4.8 306 29% 365 31% 18.7 15.7 1.13 1.37 21% 26.8 22.1

Informatica 34.85 3,941 3,376 820 915 11% 4.1 3.7 243 30% 278 30% 13.9 12.1 1.41 1.65 17% 24.7 21.1

Software AG 36.03 3,136 3,156 1,405 1,451 3% 2.2 2.2 395 28% 422 29% 8.0 7.5 2.56 3.02 18% 14.1 11.9

Micro Focus 9.53 1,606 1,719 425 432 2% 4.0 4.0 169 40% 181 42% 10.2 9.5 0.80 0.83 3% 11.9 11.5

Progress Software 21.39 1,383 1,031 465 438 -6% 2.2 2.4 100 22% 130 30% 10.3 8.0 1.04 1.40 35% 20.6 15.2

Pegasystems 29.04 1,133 1,030 475 538 13% 2.2 1.9 46 10% 52 10% 22.6 19.8 0.81 1.13 40% 36.0 25.8

Mean 842$ 921$ 8% 4.0 x 3.6 x 231$ 27% 267$ 29% 15.8 x 13.5 x 1.27$ 1.53$ 22% 26.5 x 21.5 x

Median 820 915 11% 4.0 3.7 243 28% 278 30% 13.9 12.1 1.11 1.37 19% 24.7 21.1




($ millions)


Global Diversified


Content Management







Storage Management



High Growth

Highly-Profitable





Storage Management

NetApp 32.88$ 12,063$ 7,838$ 6,314$ 6,829$ 8% 1.2 x 1.1 x 1,215$ 19% 1,384$ 20% 6.5 x 5.7 x 2.04$ 2.38$ 17% 16.1 x 13.8 x

CommVault Systems 58.66 2,828 2,507 452 528 17% 5.5 4.8 84 19% 110 21% 29.9 22.9 1.06 1.31 23% 55.2 44.7

Carbonite 7.01 184 118 82 109 32% 1.4 1.1 (9) nm (1) nm nm nm (0.76) (0.44) nm nm nm

FalconStor Software 2.35 112 78 84 91 8% 0.9 0.9 n/a n/a n/a n/a nm nm (0.11) (0.00) nm nm nm

Mean 1,733$ 1,889$ 16% 2.3 x 2.0 x 430$ 19% 498$ 21% 18.2 x 14.3 x 0.56$ 0.82$ 20% 35.7 x 29.3 x

Median 268 318 12% 1.3 1.1 84 19% 110 21% 18.2 14.3 0.48 0.66 20% 35.7 29.3


VMware 96.74$ 41,888$ 36,991$ 4,555$ 5,438$ 19% 8.1 x 6.8 x 1,670$ 37% 2,048$ 38% 22.2 x 18.1 x 2.62$ 3.14$ 20% 37.0 x 30.8 x

CA Technologies 25.77 12,099 10,856 4,769 4,901 3% 2.3 2.2 1,772 37% 1,873 38% 6.1 5.8 2.35 2.61 11% 11.0 9.9

BMC Software 41.49 6,677 5,118 2,226 2,356 6% 2.3 2.2 929 42% 950 40% 5.5 5.4 3.42 3.73 9% 12.1 11.1

ServiceNow 38.68 5,094 5,077 235 363 54% 21.6 14.0 (10) nm 13 3% nm nm (0.24) (0.01) nm nm nm

SolarWinds 55.74 4,240 4,044 254 322 27% 15.9 12.6 137 54% 178 55% 29.6 22.7 1.15 1.48 28% 48.3 37.8

Splunk 36.72 3,881 3,613 178 250 40% 20.3 14.4 (5) nm (1) nm nm nm (0.10) (0.01) nm nm nm

Compuware 9.89 2,155 2,108 996 1,095 10% 2.1 1.9 270 27% 243 22% 7.8 8.7 0.36 0.53 47% 27.7 18.8

Netscout Systems 25.51 1,069 891 336 378 13% 2.7 2.4 88 26% 104 27% 10.2 8.6 1.19 1.39 17% 21.5 18.3

Opnet Technologies 34.07 797 698 189 223 18% 3.7 3.1 40 21% 56 25% 17.6 12.5 0.96 1.26 32% 35.6 27.1

LogMeIn 22.43 565 366 138 166 20% 2.7 2.2 29 21% 34 20% 12.6 10.8 0.62 0.81 31% 36.4 27.8

Keynote Systems 14.48 261 215 123 136 11% 1.8 1.6 19 15% 31 23% 11.4 7.0 0.68 1.27 88% 21.4 11.4

Mean 1,273$ 1,421$ 20% 7.6 x 5.8 x 449$ 31% 502$ 29% 13.7 x 11.1 x 1.18$ 1.47$ 31% 27.9 x 21.4 x

Median 254 363 18% 2.7 2.4 88 27% 104 26% 11.4 8.7 0.96 1.27 28% 27.7 18.8


Dassault Systemes 105.12$ 13,186$ 11,441$ 2,585$ 2,840$ 10% 4.4 x 4.0 x 913$ 35% 981$ 35% 12.5 x 11.7 x 4.23$ 4.72$ 12% 24.8 x 22.3 x

Autodesk 33.35 7,666 5,949 2,348 2,504 7% 2.5 2.4 681 29% 766 31% 8.7 7.8 1.94 2.19 13% 17.2 15.2

ANSYS 73.40 6,970 6,525 819 927 13% 8.0 7.0 412 50% 475 51% 15.8 13.7 2.79 3.20 15% 26.3 22.9

Synopsys 32.99 5,046 4,225 1,767 1,909 8% 2.4 2.2 508 29% 501 26% 8.3 8.4 2.07 2.88 39% 15.9 11.5

Cadence Design 12.87 3,552 3,276 1,298 1,411 9% 2.5 2.3 364 28% 420 30% 9.0 7.8 0.70 0.90 29% 18.4 14.3

Parametric Technology 21.77 2,626 2,528 1,265 1,381 9% 2.0 1.8 283 22% 346 25% 8.9 7.3 1.45 1.83 26% 15.0 11.9

Mentor Graphics 15.47 1,759 1,847 1,108 1,178 6% 1.7 1.6 230 21% 299 25% 8.0 6.2 1.29 1.60 25% 12.0 9.7

Exa 10.85 159 126 53 63 19% 2.4 2.0 10 19% 13 20% 12.6 10.0 n/a 0.31 n/a nm 34.7

Mean 1,405$ 1,527$ 10% 3.2 x 2.9 x 425$ 29% 475$ 30% 10.5 x 9.1 x 2.07$ 2.20$ 23% 18.5 x 17.8 x

Median 1,282 1,396 9% 2.5 2.3 388 28% 447 28% 9.0 8.1 1.94 2.01 25% 17.2 14.7



Equity Trading Multiples by Comparable Subset

($ millions)


Global Diversified


Content Management







Storage Management



High Growth

Highly-Profitable






Salesforce.com 152.69$ 21,446$ 20,200$ 3,013$ 3,840$ 27% 6.7 x 5.3 x 500$ 17% 709$ 18% 40.4 x 28.5 x 1.45$ 2.01$ 39% nm x 76.0 x

ServiceNow 38.68 5,094 5,077 235 363 54% 21.6 14.0 (10) nm 13 3% nm nm (0.24) (0.01) nm nm nm

NetSuite 63.80 4,689 4,524 301 376 25% 15.0 12.0 27 9% 44 12% nm nm 0.18 0.34 96% nm nm

Ariba 44.80 4,584 4,327 547 644 18% 7.9 6.7 127 23% 155 24% 34.1 27.9 0.99 1.24 25% 45.3 36.2

Concur 73.73 4,469 3,989 463 582 26% 8.6 6.9 109 24% 147 25% 36.6 27.2 0.89 1.21 36% 82.8 60.8

Ultimate Software 102.10 2,733 2,671 330 404 23% 8.1 6.6 61 19% 88 22% 43.6 30.3 0.95 1.44 51% nm 71.0

Rightnow Technologies 43.00 1,758 1,517 269 322 20% 5.6 4.7 56 21% 71 22% 27.1 21.4 0.82 1.14 39% 52.4 37.7

ExactTarget 24.22 1,740 1,530 279 340 22% 5.5 4.5 10 3% 19 5% nm nm (0.69) (0.12) nm nm nm


Kenexa [d] 45.83 1,287 1,230 361 421 17% 3.4 2.9 59 16% 75 18% 20.7 16.5 1.06 1.38 30% 43.2 33.2



Eloqua 19.75 731 728 91 112 23% 8.0 6.5 (5) nm 3 3% nm nm (0.24) (0.05) nm nm nm

LogMeIn 22.43 565 366 138 166 20% 2.7 2.2 29 21% 34 20% 12.6 10.8 0.62 0.81 31% 36.4 27.8

Responsys 10.23 551 452 162 197 22% 2.8 2.3 25 16% 35 18% 18.0 12.8 0.20 0.29 41% 49.9 35.5

Constant Contact 17.40 538 457 253 303 20% 1.8 1.5 37 15% 51 17% 12.4 9.0 0.55 0.84 54% 31.8 20.6


DemandTec 13.19 475 405 98 109 10% 4.1 3.7 11 11% 14 13% 38.3 29.4 0.10 0.11 12% nm nm

Vocus 20.06 420 472 171 208 21% 2.8 2.3 15 9% 25 12% 32.0 18.9 0.36 0.65 79% 55.7 31.1

SciQuest 18.20 413 349 67 91 36% 5.2 3.8 10 15% 17 19% 35.5 20.3 0.23 0.41 82% 80.2 44.0

IntraLinks 6.54 363 369 198 213 7% 1.9 1.7 32 16% 37 17% 11.6 9.9 0.07 0.15 103% 90.8 44.8

Keynote Systems 14.48 261 215 123 136 11% 1.8 1.6 19 15% 31 23% 11.4 7.0 0.68 1.27 88% 21.4 11.4

Mean 343$ 428$ 25% 6.8 x 5.2 x 48$ 15% 71$ 15% 26.7 x 20.5 x 0.32$ 0.59$ 53% 53.6 x 43.0 x

Median 185 210 22% 6.0 4.8 22 16% 32 17% 29.5 20.3 0.29 0.47 44% 49.9 37.0



Equity Trading Multiples by Comparable Subset continued

($ millions)


Global Diversified


Content Management







Storage Management



High Growth

Highly-Profitable





High Growth (>25% CY13E Revenue Growth)

ServiceNow 38.68$ 5,094$ 5,077$ 235$ 363$ 54% 21.6 x 14.0 x (10)$ nm 13$ 3% nm x nm x (0.24)$ (0.01)$ nm nm x nm x

Palo Alto Networks 61.57 4,440 4,117 311 459 47% 13.2 9.0 19 6% 56 12% nm nm 0.14 0.29 109% nm nm


Splunk 36.72 3,881 3,613 178 250 40% 20.3 14.4 (5) nm (1) nm nm nm (0.10) (0.01) nm nm nm


SciQuest 18.20 413 349 67 91 36% 5.2 3.8 10 15% 17 19% 35.5 20.3 0.23 0.41 82% 80.2 44.0


Carbonite 7.01 184 118 82 109 32% 1.4 1.1 (9) nm (1) nm nm nm (0.76) (0.44) nm nm nm

SS&C Technologies 25.21 2,145 3,157 556 719 29% 5.7 4.4 212 38% 268 37% 14.9 11.8 1.34 1.59 19% 18.9 15.8

Envestnet 11.70 390 318 155 200 29% 2.1 1.6 23 15% 39 19% 13.9 8.3 0.29 0.58 102% 40.6 20.0

Brightcove 11.68 345 287 82 106 29% 3.5 2.7 (8) nm 2 2% nm nm (0.50) (0.16) nm nm nm


Salesforce.com 152.69 21,446 20,200 3,013 3,840 27% 6.7 5.3 500 17% 709 18% 40.4 28.5 1.45 2.01 39% nm 76.0

SolarWinds 55.74 4,240 4,044 254 322 27% 15.9 12.6 137 54% 178 55% 29.6 22.7 1.15 1.48 28% 48.3 37.8

Concur 73.73 4,469 3,989 463 582 26% 8.6 6.9 109 24% 147 25% 36.6 27.2 0.89 1.21 36% 82.8 60.8

Mean 389$ 509$ 35% 9.3 x 6.8 x 62$ 22% 95$ 17% 28.5 x 22.2 x 0.20$ 0.46$ 58% 54.1 x 46.6 x

Median 155 200 32% 7.4 5.6 8 16% 13 16% 32.6 22.7 0.14 0.29 43% 48.3 44.0

Highly-Profitable (>40% CY12E EBITDA Margin)

Verisign 48.69$ 8,480$ 7,142$ 880$ 975$ 11% 8.1 x 7.3 x 526$ 60% 599$ 61% 13.6 x 11.9 x 1.89$ 2.26$ 20% 25.8 x 21.5 x

Check Point 48.16 10,090 6,969 1,359 1,479 9% 5.1 4.7 807 59% 881 60% 8.6 7.9 3.15 3.53 12% 15.3 13.7

SolarWinds 55.74 4,240 4,044 254 322 27% 15.9 12.6 137 54% 178 55% 29.6 22.7 1.15 1.48 28% 48.3 37.8

ANSYS 73.40 6,970 6,525 819 927 13% 8.0 7.0 412 50% 475 51% 15.8 13.7 2.79 3.20 15% 26.3 22.9

Oracle 31.46 155,349 138,920 37,355 39,441 6% 3.7 3.5 18,040 48% 19,650 50% 7.7 7.1 2.48 2.77 12% 12.7 11.4

MSCI 35.79 4,410 4,927 952 1,025 8% 5.2 4.8 433 46% 476 46% 11.4 10.4 1.99 2.21 11% 18.0 16.2

Verisk Analytics 47.61 8,324 9,478 1,522 1,697 11% 6.2 5.6 680 45% 769 45% 13.9 12.3 1.95 2.26 16% 24.4 21.1

Akamai Technologies 38.26 6,893 5,875 1,353 1,548 14% 4.3 3.8 583 43% 676 44% 10.1 8.7 1.65 1.96 19% 23.2 19.5

BMC Software 41.49 6,677 5,118 2,226 2,356 6% 2.3 2.2 929 42% 950 40% 5.5 5.4 3.42 3.73 9% 12.1 11.1

Adobe 32.43 16,077 14,341 4,369 4,485 3% 3.3 3.2 1,818 42% 1,896 42% 7.9 7.6 2.31 2.35 2% 14.0 13.8

Microsoft 29.76 249,652 199,744 75,059 83,893 12% 2.7 2.4 30,938 41% 36,100 43% 6.5 5.5 2.65 3.24 22% 11.2 9.2

Intel 22.65 113,880 110,794 53,419 55,751 4% 2.1 2.0 21,664 41% 23,473 42% 5.1 4.7 2.08 2.18 5% 10.9 10.4

F5 Networks 104.64 8,300 7,193 1,428 1,665 17% 5.0 4.3 576 40% 682 41% 12.5 10.5 4.58 5.40 18% 22.8 19.4

Mean 13,923$ 15,043$ 11% 5.5 x 4.9 x 5,965$ 47% 6,677$ 48% 11.4 x 9.9 x 2.47$ 2.81$ 14% 20.4 x 17.5 x

Median 1,428 1,665 11% 5.0 4.3 680 45% 769 45% 10.1 8.7 2.31 2.35 15% 18.0 16.2


Public & Private Equity Financings

Capital Raise Activity: 3Q 2012

($ millions)


Close Date Company Participating Investors Description Amount

09/30/12 Anametrix TVC Capital Cloud-based business analytics and marketing intelligence $409/30/12 Bittle SAS Siparex Group Business intelligence SaaS $109/30/12 Bright Pattern Cervin Ventures SaaS customer service management n/a09/30/12 Corona Labs n/a Mobile application development platform n/a09/30/12 DataStax Crosslink Capital, Lightspeed Venture Partners, Meritech Capital Partners Open source database for on-premise or cloud-based applications $2509/30/12 docTrackr Atlas Venture, CommonAngels, Oseo, Polaris Venture Partners Cloud-based document tracking and management $209/30/12 DotNetNuke n/a Open source web application framework n/a09/30/12 Namely n/a Talent management for the advertising sector $109/30/12 NGData ING Group SA, Plug and Play Tech Center Big data management and analytics $309/30/12 ThingWorx Safeguard Scientifics Application development platform for embedded devices n/a09/30/12 Trifacta Accel Partners, X/Seed Capital Management Cross-platform interface for big data $409/28/12 Crimson Hexagon n/a Social media monitoring and analysis $209/26/12 Medallia Sequoia Capital Customer experience and feedback management SaaS $3509/26/12 V-Key IPV Capital Mobile application intrusion protection and intelligence $409/25/12 Appurify Felicis Ventures Cloud-based mobile application testing n/a09/25/12 Catavolt Clayton Associates Cloud-based mobile enterprise connectivity $209/25/12 Momindum SAS INOCAP, Starquest Capital Video indexing and synchronizing $109/25/12 Panoratio Holdings n/a Data set conversion tool $109/24/12 Zenoss Boulder Ventures Ltd., Grotech Ventures, Intersouth Partners, Summit Partners Operations software for physical, virtual and cloud-based IT infrastructure $2509/21/12 Cloudium Systems Ltd. ACT Venture Capital, AIB Seed Capital Fund, Delta Partners Ltd. High performance solutions for rich media applications $209/21/12 Rainstor Credit Suisse, Doughty Hanson, Dow Chemical, Rogers Communications, Storm Big data management $1209/20/12 Origami Logic Accel Partners Data visualization and analytics $809/19/12 Captricity Attractor, Charles River, John S. and James L. Knight Foundation, Menlo Ventures Web-based data digitalization and document management n/a09/19/12 HireIQ Solutions n/a Talent acquisition SaaS $209/19/12 SnapLogic Andreessen Horowitz, Ignition Partners, Triangle Peak Partners SaaS open source data integration $2009/18/12 Mimecast Ltd. Dawn Capital LLP, Insight Venture Partners Cloud-based email archiving and security $7509/14/12 MyVBO n/a Centralized information management for SMBs $309/14/12 Virtual Instruments General Catalyst Partners, Lightspeed Venture Partners, Next World Group Storage area network and virtual infrastructure optimization $2809/13/12 Workshare Business Growth Fund plc, Scottish Equity Partners Multi-party document collaboration $3509/12/12 Damballa Adams Street, Blumberg, GRA, Imlay Investments, InterWest, Paladin, Palomar, Sigma Botnet, malware and advanced persistent threat protection $1509/12/12 Datameer KPCB, Redpoint Ventures Big data analytics $609/11/12 CumuLogic Citrix Systems Java-based platform as a service n/a09/10/12 BrightContext Southern Capitol Ventures Real-time data processing and visualization $209/06/12 Acunu Ltd. Eden Ventures, Imperial Innovations, Oxford Technology, Pentech Ventures Turn-key analytics, database and storage software $609/05/12 Pollen Union Square Ventures Supply chain and working capital management $909/05/12 Tenable Network Security Accel Partners Network security vulnerability identification $5009/04/12 Kadrige SA Amundi SA, CM-CIC Capital Prive, H2i, Matignon Investissement & Gestion Sales and marketing management for the pharmaceutical sector $508/30/12 GramercyOne Technology n/a ERP and marketing automation SaaS for retailers $608/28/12 RiverMeadow Software n/a Cloud migration SaaS $508/28/12 Sauce Labs Salesforce.com, Triage Ventures Web application testing $308/27/12 Aerospike Alsop Louie Partners, Draper Fisher Jurvetson, New Enterprise Associates NoSQL database storage and management systems n/a08/23/12 Cloud Physics Mayfield Fund Datacenter analytics for virtualized infrastructures $308/23/12 MobileSpaces Accel Partners Enterprise mobile application security $308/22/12 Mocana Intel Capital, Shasta Ventures, Southern Cross, Symantec, Trident Capital Embedded mobile device security $2508/22/12 Mover.io Growlab Ventures Cloud data migration tools n/a



Capital Raise Activity: 3Q 2012 continued

($ millions)



08/21/12 Cirro Frost Venture Partners, Miramar Venture Partners Date warehousing and cloud-based analytics $108/20/12 Magnet Systems Andreessen Horowitz, HTC Cloud-based platform for development of social CRM applications $4708/20/12 Sqrrl Data Atlas Venture, Matrix Partners Data integration and big data analytics $208/15/12 Nexaweb Technologies Masthead Venture Partners Web application migration <$108/15/12 YottaMark ATA Ventures, Fairhaven, Granite Ventures, Thomvest International, Westbury Partners SaaS fresh food tracing solutions $2408/14/12 ParStream GmbH Baker Capital, CrunchFund, Khosla Ventures, The Data Collective Big data indexing and analytics $608/10/12 ClearSlide Bessemer Venture Partners, Felicis Ventures, Greylock Partners Sales communications portal, marketing data analysis and content management $2808/09/12 AtTask n/a On-demand project planning and portfolio management $1308/09/12 Buddy Platform The Bing Fund Cloud hosting and platform for mobile applications n/a08/09/12 InsideSales.com Hummer Winblad Cloud-based inside sales support tools $408/07/12 ShiftPlanning Point Nine Management GmbH SaaS platform for workforce scheduling and coordination $108/06/12 StoredIQ n/a Automated information classification and management $108/03/12 Trackvia Access, Allen & Co., Draper Associates, Fairhaven Capital, Flywheel, Longworth Database powered applications that leverage spreadsheets for SMBs $708/02/12 AnyPresence Grotech Ventures, Kinetic Ventures Employee engagement platform for mobile devices $608/02/12 Lua Technologies IA Venture Partners Project management and team collaboration $308/02/12 OpenGamma Accel Partners, Euclid Opportunities, FirstMark Capital, ICAP plc Analytics and risk management for the financial services sector $1508/01/12 daPulse Labs Ltd. Genesis Partners Ltd. Project collaboration platform $207/31/12 Aravo Solutions n/a On-demand supplier information management $407/31/12 CA Customer Alliance GmbH High-Tech Gruenderfonds GmbH, Mountain Super Angel, netSTART Venture GmbH Customer feedback management SaaS for the hospitality sector n/a07/31/12 Pinfluencer Baseline Ventures, Freestyle Capital Big data analytics and discovery $107/31/12 Pipedrive Satori Capital, TMT Investments plc Online sales management $107/27/12 Stackdriver Bain Capital Ventures Cloud infrastructure software $507/26/12 Ordoro n/a Web-based application for order, purchasing and inventory management $107/25/12 FieldLens Contour, High Peaks, NYC Seed, Quotidian Ventures, SoftBank Capital Mobile field management for the construction sector $207/25/12 Meteor Development Group Andreessen Horowitz, Matrix Partners Open source platform for web application development $1107/24/12 ScriptRock Starfish Ventures, StartMate, Valar Ventures Management IT configuration testing $107/20/12 Agiliance n/a Enterprise governance, risk and compliance solutions platform $507/20/12 Noesis Energy Austin Ventures, Black Coral Capital Cloud-based energy management $807/19/12 Apigee Bay Partners, Focus Ventures, Norwest Venture Partners, SAP Ventures, Third Point API management $2007/19/12 Correlsense Accel Partners, Proseed Venture Capital, Technion Foundation, Vertex Venture Capital IT systems monitoring and management $307/18/12 Asana Andreessen Horowitz, Benchmark Capital, Founders Fund Management Web-based collaboration tools $2807/18/12 Data Virtuality GmbH CFH Beteiligungsgesellschaft mbH, High-Tech Gruenderfonds Management GmbH Data management for heterogeneous business intelligence environments $107/18/12 Datical Austin Ventures, DFJ Mercury, Mohr Davidow Ventures Open source database schema automation tools $107/18/12 Power Fingerprinting Center for Innovative Technology Integrity assessment and intrusion detection <$107/17/12 JLizard Ltd. Enterprise Ireland, Polaris Venture Partners, RRE Ventures Log file management SaaS $107/17/12 Racemi Harbert Management, Paladin Capital Group Data center efficiency and productivity management $707/17/12 Sigkat Acceleprise API interface for verifying credentials n/a07/16/12 Contrail Systems Khosla Ventures Virtualized network control platform $1007/13/12 Bit9 .406 Ventures, Atlas Venture, Highland Capital Partners, KPCB, Sequoia Capital Whitelisting-based security for enterprise applications $3507/12/12 Mortar Data n/a Platform as a service Hadoop programming framework $207/10/12 Seculert Ltd. Norwest Venture Partners, YL Ventures Cyber threat management SaaS $507/10/12 uCirrus ATA Ventures Virtual datastream processing for web application acceleration $207/09/12 FullContact 500 Startups, Foundry Group, High Country, SK Ventures, TechStars, Zelkova Ventures Cloud-based contact management $707/09/12 Nexenta Systems Javelin Venture Partners, Razor's Edge Fund, Sierra Ventures, TransLink Capital Open source enterprise class storage software n/a06/30/12 Aktana Starfish Ventures CRM analytics and salesforce automation $1



Capital Raise Activity: 3Q 2012 continued

($ millions)



06/30/12 AlienVault Adara Venture Partners, KPCB, Sigma Partners, Trident Capital Open source unified security management platform $2206/30/12 Apica AB ALMI Invest, Industrifonden AB, KTH Chalmers Capital, SEB Venture Capital Web application and platform performance testing $506/30/12 aPriori Technologies Sigma Partners Product cost management for the manufacturing sector $506/30/12 Aryaka Networks InterWest, Mohr Davidow, Nexus, Presidio Ventures, Stanford University, Trinity Wide area network and application performance acceleration $2506/30/12 Boundary Lightspeed Venture Partners, Scale Venture Partners Network monitoring for cloud-based environments $1506/30/12 Business Intelligence International n/a Web-based business intelligence solutions and analytics <$106/30/12 Cloudability 500 Startups, Foundry Group, Trinity Ventures Cloud computing spend management $906/30/12 Kinvey Atlas Venture, Avalon Ventures Backend as a service for mobile applications $506/30/12 KnowledgeTree Core Capital Partners, Hasso Plattner, Hatteras Venture, River Cities Capital Funds Cloud-based document management and collaboration $506/30/12 LockPath El Dorado Ventures, Vesbridge Partners, Webb Investment Network Governance, risk and compliance for regulated businesses $606/30/12 SkyCache Battery Ventures, O'Reilly AlphaTech Ventures Website acceleration $106/30/12 SwiftStack Storm Ventures Cloud storage platform $206/30/12 Tealium Battery Ventures Enterprise tag management $11



Software IPO Pricing & Performance Data

Initial Equity Issuances from 2011 – 2012 YTD ($ millions)

Notes: [a] Primary shares onlySource: Company releases, Wall Street research

Current Trading Data Valuation at IPO

Share Price Market Enterprise EV / Revenue Performance Share Amount Market Enterprise EV / Revenue Revenue at IPO

Company (09/30/12) Value Value CY12E CY13E Since IPO IPO Date Price Raised [a] Value Value TTM CY CY +1 TTM

Eloqua $ 19.75 $ 731 $ 728 8.0 x 6.5 x 70.7 % 08/01/12 $ 11.50 $ 81 $ 368 $ 365 4.3 x 4.0 x 3.3 x

E2open 13.58 352 354 4.8 4.1 -9.5 07/25/12 15.00 56 374 335 4.8 4.5 3.9

Palo Alto Networks 61.57 4,440 4,117 s x 9.0 46.6 07/19/12 42.00 202 2,850 2,527 9.9 8.1 5.5

ServiceNow 38.68 5,094 5,077 21.6 x 14.0 114.9 06/29/12 18.00 162 2,218 3,880 19.8 16.5 10.7

Exa 10.85 159 126 2.4 2.0 8.5 06/28/12 10.00 42 132 127 2.7 2.4 2.0

Infoblox 23.25 1,281 1,123 6.3 5.2 45.3 04/19/12 16.00 92 844 794 5.2 4.5 3.7

Proofpoint 14.85 530 453 4.4 3.7 14.2 04/19/12 13.00 67 426 418 5.1 4.1 3.5

Splunk 36.72 3,881 3,613 20.3 14.4 116.0 04/18/12 17.00 213 1,740 1,711 19.4 9.7 7.0

ExactTarget 24.22 1,740 1,530 5.5 4.5 27.5 03/21/12 19.00 162 1,228 1,185 6.3 4.4 3.6

Demandware 31.75 993 891 11.9 9.0 98.4 03/14/12 16.00 88 449 891 15.8 12.0 8.9

Bazaarvoice 15.15 1,179 1,036 7.4 5.6 26.3 02/23/12 12.00 108 682 670 9.1 5.4 4.2

AVG Technologies 9.60 522 586 1.8 1.6 -40.0 02/07/12 16.00 64 768 920 3.4 2.9 2.5

Guidewire Software 31.05 1,860 1,655 6.7 5.4 138.8 01/24/12 13.00 115 521 483 2.4 2.0 1.7

Jive Software 15.71 1,064 899 8.1 5.9 30.9 12/14/11 12.00 121 709 558 8.0 7.2 5.0

Imperva 36.99 915 814 8.2 6.6 105.5 11/09/11 18.00 86 312 302 4.2 3.9 3.1

Carbonite 7.01 184 118 1.4 1.1 -29.9 08/10/11 10.00 54 247 231 4.7 3.9 2.8

LinkedIn 120.40 10,211 9,594 10.5 6.9 167.6 05/18/11 45.00 57 4,333 3,966 9.1 7.7 4.8

Responsys 10.23 551 452 2.8 2.3 -14.8 04/20/11 12.00 66 638 624 6.6 4.9 4.1

ServiceSource 10.28 812 698 2.8 2.3 2.8 03/25/11 10.00 80 710 689 4.1 3.9 3.3

Cornerstone OnDemand 30.66 1,605 1,543 13.3 9.3 135.8 03/17/11 13.00 98 651 652 12.4 9.1 6.1

Mean 6.9 x 5.3 x 26.4 % $ 112 $ 1,049 $ 1,048 7.1 x 5.4 x 4.0 x

Median 5.7 4.4 2.3 81 648 616 5.2 4.4 3.6



IPO Pipeline

Note:In a typical IPO process, the offering progresses through three key milestones: the initial filing of the S-1 (prospectus; F-1 for foreign companies); an amended version of the S-1 following comments from the SEC; and pricing the offering and issuing shares to the public market.

($ millions)

Company Stage Ticker IPO Date Range Price First Filing Date Revenue (TTM) Net Income (TTM)

Workday Priced WDAY 10/11/12 $24 - $26 $28.00 08/30/12 $199 ($90)

Qualys Priced QLYS 09/27/12 $11 - $13 $12.00 06/08/12 $83 ($1)

Trulia Priced TRLA 09/19/12 $14 - $16 $17.00 08/17/12 $51 ($11)

Eloqua Priced ELOQ 08/02/12 $9.50 - $11.50 $11.50 08/24/11 $85 ($8)

E2open Priced EOPN 07/26/12 $15 - $17 $15.00 02/17/12 $64 ($1)

Kayak Software Priced KYAK 07/20/12 $22 - $25 $26.00 11/17/10 $245 $21

Palo Alto Networks Priced PANW 07/20/12 $38 - $40 $42.00 04/06/12 $220 ($1)

Exa Priced EXA 06/28/12 $11 - $13 $10.00 08/03/11 $47 $14

Blackstratus S-1 Filed BLKS n/a n/a n/a 04/13/12 $9 ($1)

Gigamon SEC Review GIMO n/a n/a n/a 07/13/12 $82 $13

Reval Holdings SEC Review RVAL n/a n/a n/a 03/30/12 $47 ($19)

Trustwave Holdings Postponed TWAV n/a n/a n/a 04/21/11 $121 ($1)

Avast Software Withdrawn AVST n/a $9 - $11 n/a 12/21/11 $91 $24


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Selected TransactionsShea & Company has advised on billions of dollars of software transactions

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