software quarterly report - robert w. baird &...

Please refer to Appendix – Disclaimers and Other Disclosures on page 14.

Market Analysis Winter 2016

Software Quarterly Report Review of Sector Trends and M&A Activity

Peter Kies

Managing Director

Head of Technology & Services

Investment Banking

+1.414.765.7262 [email protected]

Mike Magluilo

Managing Director

Technology Investment Banking

+1.303.413.3818

[email protected]

Chase Sanders

Managing Director


+1.202.303.1807

[email protected]

Jonathan Harrison

Managing Director

European Investment Banking

+44.207.667.8414

[email protected]

Owen Hart

Managing Director

+1.415.627.3273

[email protected]

John Moriarty

Managing Director


+1.650.858.3811

[email protected]

David Silver

Managing Director

Head of European

Investment Banking

+44.207.667.8216

[email protected]

Table of Contents Page

Please refer to Appendix – Disclaimers and Other Disclosures on page 33.

Quarterly Report Overview ................................................................................. 1

Sector Trading Statistics and Operating Metrics ................................................. 3

Software M&A Analysis .................................................................................... 15

Selected Noteworthy Software M&A Transactions ............................................ 17

Recent Software IPOs ...................................................................................... 19

Biographies ...................................................................................................... 21

Appendix .......................................................................................................... 24

Global Investment Banking Contact List ........................................................... 32

The following report has been prepared by the Global Investment Banking Department of Robert W. Baird & Co. This report is an overview and analysis of industry and consolidation trends and is not intended to provide investment recommendations on any specific industry or company. A complete listing of all companies covered by Baird U.S. Equity Research and applicable disclosures can be

accessed at <http://www.rwbaird.com/researchdisclosure>. You can also call 1-800-792-2473 or write: Robert W. Baird, Equity Research, 24th Floor, 777 E. Wisconsin Avenue, Milwaukee, WI 53202.

Robert W. Baird & Co. (“Baird”) is a leading middle

market focused investment bank serving the M&A

and equity financing needs of our clients throughout

the U.S., Europe and Asia. Since 2008, we have

advised on 472 M&A transactions totaling $107

billion and have served as an underwriter on 600

equity offerings totaling $183 billion in raised

capital.

Baird’s balanced buy- and sell-side practice provides

expertise for public and private companies, while

our dedicated financial sponsor coverage further

expands opportunities and financing resources for

our clients. Through close coordination between our

U.S., European and Asian bankers, we work to

optimize opportunities and results for clients in the

international marketplace. Approximately one-third

of our M&A activity over the past five years has

involved international transactions.

Quarterly Report Overview

Robert W. Baird & Co. 1

This quarterly Software industry report, created by the Technology team in Baird’s Global Investment

Banking Department, highlights M&A and capital market trends and events that impact companies in the

sector. Presented below are the report’s four segments of focus (in addition to IT Conglomerates) along

with relevant public companies within each group.

Software Public Companies by Segment

Segment Companies

IT Conglomerates

Cisco EMC Hewlett Packard Enterprise IBM

Intel Microsoft Oracle SAP

Applications

ERP & HCM American Software Basware Benefitfocus Cornerstone OnDemand Halogen Intuit MindBody Software Netsuite Paycom Paylocity QAD Sage Shopify TOTVS Tyler Technologies Ultimate Software Upland WageWorks Workday Xactly Xero Yonyou CRM & Marketing Acxiom Adobe Bazaarvoice Blackbaud Callidus ChannelAdvisor Cvent Demandware eGain Five9 Hubspot inContact Interactive Intelligence Jive LinkedIn LivePerson Marin Marketo NICE Salesforce ServiceSource Tube Mogul Veeva Web.com Zendesk

Information Management & Analytics Box Datawatch Fair Isaac Globant IntraLinks MicroStrategy OpenText Qlik ServiceNow Splunk Tableau Teradata Verint Workiva PLM & Engineering Ansys Aspen Technology Autodesk Aveva Group Cadence Dassault Exa Corp. GSE Systems Mentor Graphics Nemetschek AG PDF Solutions PTC Synopsys SCM & Logistics Amber Road American Software Covisint Descartes Fleetmatics Kinaxis Manhattan MiX Telematics SciQuest SPS Commerce Telenav

Financial IT ACI Worldwide Bottomline Ebix Ellie Mae Envestnet Fidessa Guidewire Q2 Holdings Sapiens SS&C Technologies Healthcare IT Accretive Health Advisory Board Allscripts athenahealth Benefitfocus Castlight Cegedim Cerner CompuGroup Connecture CPSI Evolent Health HealthEquity Healthstream HMS iCAD Imprivata IMS Health Inovalon Medidata Omnicell OSI Systems Premier Press Ganey Quality Systems Sectra AB Veeva

Other Vertical Solutions 2U Amdocs AppFolio BroadSoft Constellation CSG Systems Epiq Evolving Systems Instructure Mobileye Model N NetSol NIC Opower PROS Holdings RealPage Redknee RPX Silver Spring Networks Synchronoss Tangoe Textura Xura

_____________________

Note: ERP = Enterprise Resource Planning, HCM = Human Capital Management, CRM = Customer Relationship Management, PLM = Product Lifecycle Management, and

SCM = Supply Chain Management.

Quarterly Report Overview


Infrastructure

Application & Data Adobe Apigee Atlassian Hortonworks Interactive Intelligence Magic Software Micro Focus MobileIron Nuance Pegasystems Progress Software RedHat SDL ServiceNow Software AG Wix

Network & Systems A10 Aerohive Akamai Arista Attunity CA Citrix F5 Gigamon Infoblox J2 Global LogMeIn NetScout New Relic RingCentral Splunk Support.com Varonis Systems VMWare

Storage Carbonite CommVault FalconStor NetApp Nimble Storage Pure Storage Violin Memory

Security

Content Providers Ahnlab AVG CYREN Cyber Ark F-Secure Proofpoint Symantec Trend Micro Zix

Network Security & IAM Absolute Software Barracuda Bio-key Check Point Cyren FireEye Fortinet Gemalto Guidance Imperva Imprivata Intrusion LifeLock Mimecast NQ Mobile Palo Alto Qihoo 360 Qualys Rapid7 Vasco Verisign

SaaS

2U Amber Road AppFolio Athenahealth Atlassian Bazaarvoice Benefitfocus Box Callidus Carbonite Castlight ChannelAdvisor Connecture Cornerstone OnDemand Covisint Cvent Demandware Ebix Ellie Mae

FireEye Five9 Fleetmatics Halogen Hubspot inContact Inovalon Instructure IntraLinks J2 Global Jive Kinaxis LifeLock LinkedIn LogMeIn Marin Marketo Medidata MindBody

MiX Telematics Model N Netsuite New Relic Opower Paycom Paylocity Proofpoint Q2 Holdings Qualys RealPage RedHat RingCentral Salesforce SciQuest ServiceNow ServiceSource Shopify SPS Commerce

Synchronoss Tangoe Textura Tube Mogul Ultimate Software Upland Veeva Workday Workiva Xactly Xero Zendesk Zix

_____________________

Note: IAM = Identity and Access Management.

Sector Trading Statistics and Operating Metrics


During the past 12 months, the Applications and SaaS segments performed in line with the NASDAQ

Composite Index in posting modest gains. In 2015, the Security segment was near flat, whereas the

Infrastructure and IT Conglomerates groups declined. Over the past three years, the SaaS segment

outpaced the NASDAQ, the Security and Applications groups were comparable to the NASDAQ, and the

IT Conglomerates and Infrastructure segments underperformed.

LTM Stock Price Performance – Primary Software Segments

3-Year Stock Price Performance – Primary Software Segments

LTM Stock Price Performance – Applications Sub-Segments / SaaS

_____________________

Source: Capital IQ.

Companies in various indices are listed on pages 1-2.

80%

90%

100%

110%

120%

130%

31-Dec-14 1-Apr-15 1-Jul-15 30-Sep-15 31-Dec-15

IT Conglomerates Applications Infrastructure Security SaaS NASDAQ

0.2%

(4.4%)(2.0%)

5.5%5.7%5.9%

50%

100%

150%

200%

31-Dec-12 7-Aug-13 14-Mar-14 19-Oct-14 26-May-15 31-Dec-15

IT Conglomerates Applications Infrastructure Security SaaS NASDAQ

79.2%

26.4%26.5%

60.9%65.8%67.6%

80%

90%

100%

110%

120%

130%

140%


ERP & HCM CRM & Marketing Information Management & Analytics PLM & Engineering

SCM & Logistics Financial IT Healthcare IT Other Vertical Solutions

SaaS NASDAQ

13.6%10.2%

4.7%

1.0%

22.0%

5.7%8.3%

(9.3%)

16.0%

4.4%



3-Year Stock Price Performance – Applications Sub-Segments / SaaS

LTM Stock Price Performance – Infrastructure and Security Sub-Segments

3-Year Stock Price Performance – Infrastructure and Security Sub-Segments

_____________________

Source: Capital IQ.

Companies in various indices are listed on pages 1-2.

50%

100%

150%

200%

250%


ERP & HCM CRM & Marketing Information Management & Analytics PLM & Engineering

SCM & Logistics Financial IT Healthcare IT Other Vertical Solutions

SaaS NASDAQ

52.8%

104.0%79.9%

59.4%

106.8%

27.6%35.6%

77.0%

65.8%68.6%

60%

70%

80%

90%

100%

110%

120%

130%

140%


Application & Data Network & Systems Storage Content Providers Network Security and IAM NASDAQ

24.5%

2.2%

(31.1%)

4.6%5.7%

(10.5%)

50%

100%

150%

200%

250%


Application & Data Network & Systems Storage Content Providers Network Security and IAM NASDAQ

86.0%

44.7%

(33.9%)

32.5%

65.8%52.2%



Risers – Top 20 Stocks of the Last 12 Months

Company

Price as of

12/31/15 Market Cap ($mil) % Change YTD

% Change

Last Quarter % Change LTM

Globant S.A. $37.51 $1,275.6 140.1% 22.6% 140.1%

Kinaxis Inc. $33.82 $823.2 111.7% 9.8% 111.7%

AhnLab, Inc. $69.00 $597.9 110.1% 92.6% 110.1%

Nemetschek AG $49.99 $1,924.5 100.4% 33.3% 100.4%

Ebix Inc. $32.79 $1,107.2 94.9% 31.6% 94.9%

Five9, Inc. $8.70 $439.4 94.2% 135.1% 94.2%

NetSol Technologies, Inc. $7.76 $80.1 86.1% 54.5% 86.1%

Silver Spring Networks, Inc. $14.41 $725.4 70.9% 11.9% 70.9%

HubSpot, Inc. $56.31 $1,920.0 67.5% 21.4% 67.5%

Manhattan Associates, Inc. $66.17 $4,834.7 62.5% 6.2% 62.5%

Tyler Technologies, Inc. $174.32 $5,916.2 59.3% 16.8% 59.3%

RingCentral, Inc. $23.58 $1,672.9 58.0% 29.9% 58.0%

Yonyou Network Technology Co. $4.90 $7,151.3 56.1% 29.0% 56.1%

Paylocity Holding Corporation $40.55 $2,061.4 55.3% 35.2% 55.3%

CompuGroup Medical AG $36.80 $1,830.0 54.7% 11.9% 54.7%

Blackbaud Inc. $65.86 $3,035.3 53.6% 17.6% 53.6%

VeriSign, Inc. $87.36 $9,741.3 53.3% 23.8% 53.3%

GSE Systems Inc. $2.40 $43.0 50.9% 61.1% 50.9%

Trend Micro Inc. $41.01 $5,598.6 50.6% 19.3% 50.6%

A10 Networks, Inc. $6.56 $415.5 50.5% 9.5% 50.5%

Decliners – Weakest 20 Stocks of the Last 12 Months

Company

Price as of

12/31/15 Market Cap ($mil) % Change YTD

% Change

Last Quarter % Change LTM

Violin Memory, Inc. $0.90 $88.6 (81.2%) (34.8%) (81.2%)

Nimble Storage, Inc. $9.20 $716.4 (66.5%) (61.9%) (66.5%)

MobileIron, Inc. $3.61 $289.9 (63.8%) 16.5% (63.8%)

Castlight Health, Inc. $4.27 $404.1 (63.5%) 1.7% (63.5%)

Intrusion Inc. $1.09 $13.7 (61.3%) (35.9%) (61.3%)

Connecture, Inc. $3.61 $79.1 (59.9%) (20.8%) (59.9%)

Marin Software Incorporated $3.58 $132.8 (57.7%) 14.4% (57.7%)

Accretive Health, Inc. $3.20 $330.5 (53.4%) 29.0% (53.4%)

Checkpoint Systems Inc. $6.27 $264.3 (52.1%) (13.5%) (52.1%)

Support.com, Inc. $1.01 $55.3 (52.1%) (9.8%) (52.1%)

LivePerson Inc. $6.75 $386.8 (52.1%) (10.7%) (52.1%)

Amber Road, Inc. $5.09 $133.6 (50.2%) 20.6% (50.2%)

Barracuda Networks, Inc. $18.68 $997.1 (47.9%) 19.9% (47.9%)

Bazaarvoice, Inc. $4.38 $352.8 (45.5%) (2.9%) (45.5%)

iCAD, Inc. $5.17 $81.3 (43.6%) 52.1% (43.6%)

Varonis Systems, Inc. $18.80 $484.3 (42.7%) 20.7% (42.7%)

HMS Holdings Corp. $12.34 $1,061.3 (41.6%) 40.7% (41.6%)

VASCO Data Security International $16.73 $662.3 (40.7%) (1.8%) (40.7%)

TubeMogul, Inc. $13.60 $476.7 (39.7%) 29.3% (39.7%)

Teradata Corporation $26.42 $3,513.9 (39.5%) (8.8%) (39.5%)

_____________________ Source: Capital IQ.



Highest Growth Companies

Company Enterprise

Value

Revenue Revenue Growth EV/Revenue

LTM 2015 2016E 2017E 2016E 2017E 2016E 2017E

NetScout Systems, Inc. $2,974.7 $604.1 $1,328.0 $1,446.7 68.5% 8.9% 2.2 2.1

Hortonworks, Inc. $898.7 $99.2 $187.6 $273.9 55.6% 46.0% 4.8 3.3

Pure Storage, Inc. $2,387.2 $356.0 $665.8 $976.4 55.2% 46.7% 3.6 2.4

Xero Limited. $1,684.7 $105.8 $195.8 $282.3 52.4% 44.2% 8.6 6.0

Mobileye N.V. $8,982.4 $208.7 $365.7 $571.4 52.4% 56.2% 24.6 15.7

Instructure, Inc. $610.0 $65.1 $104.7 $149.8 44.8% 43.1% 5.8 4.1

SS&C Technologies Holdings, Inc. $9,280.0 $900.1 $1,472.8 $1,609.6 43.4% 9.3% 6.3 5.8

Shopify Inc. $1,784.2 $170.2 $280.0 $376.6 43.1% 34.5% 6.4 4.7

AppFolio, Inc. $449.6 $67.8 $106.7 $151.2 42.5% 41.7% 4.2 3.0

Zendesk, Inc. $2,064.5 $184.7 $289.2 $386.2 40.1% 33.6% 7.1 5.3

Envestnet, Inc. $1,012.0 $399.3 $583.8 $697.7 39.6% 19.5% 1.7 1.5

Qihoo 360 Technology Co. Ltd. $9,203.8 $1,630.3 $2,710.6 $3,216.7 39.3% 18.7% 3.4 2.9

ServiceNow, Inc. $13,500.9 $917.8 $1,370.5 $1,810.0 36.9% 32.1% 9.9 7.5

New Relic, Inc. $1,584.7 $143.5 $217.3 $278.9 35.7% 28.3% 7.3 5.7

HealthEquity, Inc. $1,319.6 $115.8 $170.1 $224.7 35.7% 32.1% 7.8 5.9

Palo Alto Networks, Inc. $14,863.0 $1,033.0 $1,532.9 $1,963.7 35.3% 28.1% 9.7 7.6

Castlight Health, Inc. $256.9 $68.5 $100.8 $134.9 34.5% 33.8% 2.5 1.9

HubSpot, Inc. $1,816.1 $163.0 $239.6 $312.3 33.7% 30.3% 7.6 5.8

Accretive Health, Inc. $192.8 $96.4 $306.4 $592.1 33.7% 93.3% 0.6 0.3

Tableau Software, Inc. $6,074.3 $593.8 $870.9 $1,147.4 33.7% 31.7% 7.0 5.3

Xura, Inc. $631.2 $461.9 $369.4 $400.7 34.9% 8.5% 1.7 1.6

Workday, Inc. $14,069.6 $1,065.2 $1,547.5 $2,036.2 33.6% 31.6% 9.1 6.9

Paylocity Holding Corporation $1,982.7 $166.7 $241.6 $309.4 33.4% 28.1% 8.2 6.4

Wix.com Ltd. $802.5 $188.2 $269.3 $343.3 33.0% 27.5% 3.0 2.3

Evolent Health, Inc. $793.7 $151.7 $212.3 $274.8 32.4% 29.5% 3.7 2.9

MINDBODY, Inc. $509.1 $93.3 $133.4 $171.4 32.5% 28.5% 3.8 3.0

_____________________

Source: Capital IQ. LTM 2015 represents last 12 months of reported revenue, as of December 31.



On a relative basis, software stocks in the SaaS segment historically have registered the highest market

multiples; this trend continued through Q4 2015.

Median LTM Revenue Trading Multiples

Median LTM EBITDA Trading Multiples

_____________________

Source: Capital IQ.

Indices include the companies listed on Pages 1-2.

0x

1x

2x

3x

4x

5x

6x

7x

31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15

Applications Infrastructure Security SaaS IT Conglomerates

5.7x

3.6x

2.8x3.2x

2.5x

5x

10x

15x

20x

25x

30x

35x

40x

31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15

Applications Infrastructure Security Saas IT Conglomerates

27.0x

16.8x

14.0x15.0x

8.5x



LTM Trading Multiples for Applications Sub-Segments

Revenue EBITDA

LTM Trading Multiples for Infrastructure Sub-Segments

Revenue EBITDA

LTM Trading Multiples for Security Sub-Segments

Revenue EBITDA

_____________________

Source: Capital IQ.

6.0x

3.5x

4.3x

3.5x

2.2x

4.2x3.6x

2.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

ERP & HCM CRM &

Marketing

Information

Management& Analyt ics

PLM &

Engineering

SCM &

Logistics

Financial IT Healthcare

IT

Other

VerticalSolutions

17.6x

20.9x

15.4x 16.2x

27.4x

18.8x17.0x

13.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

ERP & HCM CRM &

Marketing

Information

Management& Analyt ics

PLM &

Engineering

SCM &

Logistics

Financial IT Healthcare

IT

Other

VerticalSolutions

3.1x

3.7x

1.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

Application

& Data

Network &

Systems

Storage

15.5x 14.9x

6.7x

0.0x

5.0x

10.0x

15.0x

20.0x

App lication

& Data

Network &

Systems

Storage

4.5x

2.5x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

Content Providers Network Security &

IAM

13.2x14.9x

0.0x

5.0x

10.0x

15.0x

20.0x

Conten t Providers Network Security &

IAM



The charts presented below demonstrate that for the Applications, Security, and SaaS segments, average

valuation multiples (on forward revenue and EBITDA) have generally surpassed the pre-crash levels of

December 2006, even though forward revenue growth estimates are below the levels seen nine years ago.

We believe the main factors contributing to this phenomenon include: (1) M&A activity driven by an

abundance of corporate cash and private equity capital chasing software opportunities, (2) scarcity

created by the numerous acquisitions of publicly traded software companies, and (3) the difficulty faced by

investors in finding well-valued growth investments, resulting in willingness to pay more for growth.

Forward Revenue Multiples

Forward EBITDA Multiples

Forward Revenue Growth Estimates

_____________________

Source: Capital IQ. Current estimates as of December 31, 2015.

3.56x2.89x

4.44x

3.22x

4.49x

1.97x1.43x

1.80x1.41x

1.97x

3.16x

4.47x4.30x

4.92x5.53x

2.72x

3.76x3.32x 3.53x

4.35x

0.00x

1.50x

3.00x

4.50x

6.00x

7.50x

IT Conglomerates Applications Infrastructure Security SaaS

CY2007E Multiples as of Dec 2006 CY2009E Multiples as of March 2009 CY2015E Multiples as of May 2015 CY2016E Multiples as of Dec 2015

(Pre-Crash) (Bottom of Market) (Current)

Ave

rag

e F

orw

ard

EV

/Rev

enu

e M

ulti

ple

(Recent Market Peak)

10.7x

13.7x

18.9x

10.8x

24.0x

6.6x 7.0x 7.0x5.8x

11.3x9.1x

17.4x

14.9x 14.6x

23.5x

8.1x

16.8x

13.4x 13.5x

20.7x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x




Ave

rag

e F

orw

ard

EV

/EB

ITD

A M

ulti

ple


12.0%

18.0% 17.1%

29.7% 28.7%

(7.7%)

3.8%

33.3%

9.8%

17.3%

0.4%

16.7%21.4%

17.9%

25.1%

1.8%

16.5% 18.3%

13.0%

22.6%

-15%

-5%

5%

15%

25%

35%


CY2007E Growth as of Dec 2006 CY2009E Growth as of March 2009 CY2015E Growth as of May 2015 CY2016E Growth as of Dec 2015



Forward Revenue Multiples for Applications Sub-Segments

Forward EBITDA Multiples for Applications Sub-Segments

Forward Revenue Growth Estimates for Applications Sub-Segments

_____________________


2.81x

3.56x

2.56x3.18x

2.17x 2.20x

2.88x2.30x

1.92x

1.14x 1.35x 1.33x0.67x

1.06x1.66x

1.30x

6.53x

4.34x

5.29x4.54x

3.61x

4.99x

4.01x

2.95x

4.93x

3.76x4.05x 4.18x

3.65x

4.37x

3.21x2.73x

0.00x

1.50x

3.00x

4.50x

6.00x

7.50x

ERP & HCM CRM & Marketing Information Management &Analytics

PLM & Engineering SCM & Logistics Financial IT Healthcare IT Other Vertical Solutions



Ave

rag

e F

orw

ard

EV

/Rev

enu

e M

ulti

ple


14.6x

17.9x

9.6x11.8x 12.6x

26.8x

13.6x

9.2x9.7x

6.3x 5.5x 4.5x3.3x

8.5x 8.7x6.0x

20.7x

23.8x

13.8x15.6x

19.4x20.8x

16.8x

11.3x

18.5x

22.4x

14.6x 14.5x

20.5x

17.1x

13.5x 14.2x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x





Ave

rag

e F

orw

ard

EV

/EB

ITD

A M

ulti

ple


23.1% 22.7%

19.0%

14.8%

10.9%13.6%

18.4%

12.7%10.6%

1.1% 1.2%

(3.4% )

2.8%4.8%

9.4%

1.9%

21.0% 20.2%

16.0%

4.8%

12.7%

16.2%19.0%

16.4%

22.4%

16.8% 16.1%

5.8%

12.3%

18.8%

15.4%

19.0%

-10%

0%

10%

20%

30%





Ave

rag

e %

Gro

wth




Forward Revenue Multiples for Infrastructure & Security Sub-Segments

Forward EBITDA Multiples for Infrastructure & Security Sub-Segments

Forward Revenue Growth Estimates for Infrastructure & Security Sub-Segments

_____________________


3.90x

5.03x4.70x

3.30x 3.15x

1.85x 2.05x

0.96x1.49x 1.34x

4.68x 4.41x

2.79x

5.17x4.70x

3.65x 3.52x

1.88x

3.87x3.28x

0.00x

1.50x

3.00x

4.50x

6.00x

7.50x

Application & Data Network & Systems Storage Content Providers Network Security & IAM



Ave

rag

e F

orw

ard

EV

/Rev

enu

e M

ulti

ple


19.2x

15.6x

28.1x

10.9x 10.7x

6.9x 7.0x 7.1x5.7x 5.9x

14.7x16.2x

10.5x11.0x

16.2x16.8x

11.7x

8.6x

13.3x 13.7x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x




Ave

rag

e F

orw

ard

EV

/EB

ITD

A M

ulti

ple


13.3%

18.8%

25.1%

19.0%

40.0%

5.9% 5.5% 5.4%3.5%

15.1%

26.4%

19.3%

14.7%10.7%

20.8%17.4% 18.5%

20.2%

11.3%14.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%




Ave

rag

e %

Gro

wth




Software revenue multiples correlate much more heavily with revenue growth than with profitability.

Revenue Multiple vs. Revenue Growth – Applications

Revenue Multiple vs. Revenue Growth – Infrastructure & Security

Revenue Multiple vs. EBITDA Margin – Applications

Revenue Multiple vs. EBITDA Margin – Infrastructure & Security

_____________________

Source: Capital IQ. LTM as of December 31, 2015.

R² = 0.2407

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

(30.0%) (20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

2016

E Re

venu

e Mul

tiple

2016 Revenue Growth

R² = 0.1425

-2.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

(60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0% 80.0%

2016

E R

even

ue M

ultip

le

2016 Revenue Growth

R² = 0.0021

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

(100.0%) (80.0%) (60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

2016

E Re

venu

e Mul

tiple

LTM EBITDA Margin

R² = 0.0001

-2.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

(60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0%

2016

E R

even

ue M

ultip

le

LTM EBITDA Margin



Median 2016E Revenue Growth for Applications Sub-Segments/SaaS/IT Conglomerates

Median LTM Gross Margin for Applications Sub-Segments/SaaS/IT Conglomerates

Median LTM EBITDA Margin for Applications Sub-Segments/SaaS/IT Conglomerates

_____________________ Source: Capital IQ. As of December 31, 2015.

23.3%

17.1%

14.1%

6.4%

11.1%

13.5% 13.4%

17.4%

22.3%

2.1%

0%

4%

8%

12%

16%

20%

24%

ERP & HCM CRM & Marketing IM & Analytics PLM &Engineering

SCM & Logistics Financial IT Healthcare IT Other VerticalSolutions

SaaS IT Conglomerates

63.2% 64.6%

72.2%

84.1%

67.8%

50.7%53.7% 55.7%

67.7%

60.9%

0%

15%

30%

45%

60%

75%

90%




3.0%

(3.1%)

2.2%

21.3%

13.7%

16.2%

13.7%

9.9%

(5.9%)

29.9%

-10%

0%

10%

20%

30%






Median 2016E Revenue Growth for Infrastructure and Security Sub-Segments

Median LTM Gross Margin for Infrastructure and Security Sub-Segments

Median LTM EBITDA Margin for Infrastructure and Security Sub-Segments

_____________________

Source: Capital IQ. As of December 31, 2015.

13.4%

18.4%

16.0%

14.4%

18.1%

0%

4%

8%

12%

16%

20%

Application & Data Network & Systems Storage Content Providers Network Securityand IAM

71.8%

79.4%

65.4%

82.6%

71.4%

0%

15%

30%

45%

60%

75%

90%


10.2%

6.1%

(4.9%)

19.5%

1.6%

-10%

-5%

0%

5%

10%

15%

20%


Software M&A Analysis


The software sector has registered substantial levels of M&A activity in recent years. Since the start of

2007, the category has witnessed more than 6,400 majority-stake M&A transactions (within the scope of

this report), with aggregate reported value of $521 billion (for the 1,700+ deals with value disclosed).

Acquisitions will continue to be a key part of successful growth strategies for leading software companies.

Drivers of consolidation activity include portfolio expansion, strong balance sheets, access to innovation,

vendor consolidation, private equity activity, diversification, and scale economies.

Software M&A Activity by Deal Size

_____________________

Source: Capital IQ, Dealogic, and Robert W. Baird & Co. M&A analysis. YTD as of December 31.

The M&A deal count in Q4 2015 was slightly above the average of the prior four quarters. Due largely to

the Dell/EMC deal, aggregate dollar volume of $82 billion (for the 59 deals with a disclosed value) was the

highest quarterly total in our M&A data set (which dates back to 2007). For the eighth consecutive

quarter, the deal count was above the level registered in the year-ago period, after seven consecutive

year-over-year declines on a quarterly basis.

Software M&A Activity by Quarter

_____________________

Source: Capital IQ, Dealogic, and Robert W. Baird & Co. M&A analysis.

743632

510652 767 733 653

808923

$0

$50

$100

$150

0

200

400

600

800

1,000

2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Deals 743 632 510 652 767 733 653 808 923

# of Deals - >$1B 13 2 6 15 11 13 16 10 16

# of Deals - Middle Market 213 221 161 189 189 126 110 140 160

# of Deals - Undisclosed 517 409 343 448 567 594 527 658 747

Deal Value $68 $29 $32 $52 $57 $40 $41 $66 $134

# of Deals - Undisclosed # of Deals - Middle Market # of Deals - >$1B Deal Value($ in billions)

Dea

l Co

unt D

eal Valu

e

189 183216 213 193 222 238 228 235 231

$0

$30

$60

$90

050

100150200250

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015LTM Quarter

Average

Total Deals 189 183 216 213 193 222 238 228 235 231

# of Deals - >$1B 6 4 2 4 0 4 5 3 4 4

# of Deals - Middle Market 40 32 38 37 33 34 34 37 55 40

# of Deals - Undisclosed 143 147 176 172 160 184 199 188 176 187

Deal Value $13 $27 $12 $22 $4 $11 $19 $21 $82 $34

# of Deals - Undisclosed # of Deals - Middle Market # of Deals - >$1B Deal Value($ in billions)

Dea

l Co

unt D

eal Value

Software M&A Analysis


Software companies continue to trade at attractive valuations and multiples in M&A transactions. From

2007 through December 31, 2015, the median EV/revenue ratio was 2.3x (over a total of 451 deals with

this data available). The median EV/EBITDA ratio was 15.3x over the same period (over a total of 198

transactions). Narrowing the scope to deals with public company targets since the start of 2010, the

median EV/revenue ratio for this group was 3.2x, and the median EV/EBITDA multiple was 20.6x.

Annual Median Transaction Multiples

_____________________

Source: Capital IQ, Dealogic, and Robert W. Baird & Co. M&A analysis.

2.1x 1.9x 1.5x 2.3x 3.0x 2.4x 2.5x 2.5x 3.2x

20.1x

16.4x

11.9x 12.9x

17.7x15.5x

18.2x

13.9x15.2x

0.0x

6.0x

12.0x

18.0x

24.0x

2007 2008 2009 2010 2011 2012 2013 2014 2015

LTM Revenue LTM EBITDA

Selected Noteworthy Software M&A Transactions


Date

Announced Acquiror Target

Total Transaction

Value ($mil)

Enterprise Value / LTM

Revenue EBITDA

11/23/15

$481.7 1.2x 12.2x

11/05/15

450.0 7.9

11/03/15

437.2 0.3

11/02/15

2,833.9 3.9 13.5

11/02/15

1,121.1 2.6 20.5

10/21/15

4,639.9 9.2 29.6

10/19/15

400.0 7.5

10/12/15

65,967.8 2.7 17.4

09/24/15 Genimous Investment 253.5 5.5

09/13/15

6,750.5 5.5 15.2

08/11/15 8,000.0 3.2

08/10/15

575.7 5.1

08/06/15

1,022.5 4.7 24.4

07/01/15

830.0 13.8

06/15/15

245.2 9.8

06/15/15

4,547.1 4.7 36.1

05/27/15

533.5 5.0

05/08/15

350.0 0.8

04/30/15

421.3 3.0

04/07/15

810.0 3.8

04/07/15

5,343.1 4.6 25.6

03/30/15

1,250.0 4.8 21.0

03/24/15

1,014.3 3.2 43.0

03/24/15

215.0 3.6

03/02/15

546.6 3.8

02/05/15

268.4 3.2

_____________________

Source: Dealogic, Capital IQ, and Robert W. Baird & Co. M&A analysis.

http://www.vistaequitypartners.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.darkdaily.com/jjs-ortho-clinical-diagnostics-business-snapped-up-by-carlyle-group-for-4-15-billion-in-a-sale-that-will-impact-ocds-clinical-laboratory-customers&ei=QIBvVYSTNYm-sAWQuYDoDw&bvm=bv.94911696,d.aWw&psig=AFQjCNE63tbaYKaUMAk40jGOaleU_LMSLg&ust=1433457075482592

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://logonoid.com/verint-logo/&ei=qYaVVbrdHIjZtQXK34PQDw&bvm=bv.96952980,d.b2w&psig=AFQjCNF-CBWjwuISsMm46MS7gqCHQW09xQ&ust=1435949092146644

http://www.acision.com/

http://www.coxautoinc.com/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.dealertrack.com/public/PLI/ProblemsMainEntry.aspx?scriptok%3DY&ei=YYeVVa-lNIPstQW9hZH4Bg&bvm=bv.96952980,d.b2w&psig=AFQjCNHT5trH8SznOvDcrywT9W5fSwMIdA&ust=1435949274438087

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://community.spiceworks.com/lg/ca_nimsoft_monitor_trial&ei=zoeVVZWbNoW4sAXU6YC4Cw&bvm=bv.96952980,d.b2w&psig=AFQjCNGXGac7mb7g-sVO0xSw3LCIibTuoA&ust=1435949337536201

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.rallydev.com/&ei=GYiVVYC7J4G4sAWx6JOoBw&bvm=bv.96952980,d.b2w&psig=AFQjCNEncoXeNnVraqbK3i2uWWM98GEryg&ust=1435949444044994

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.prnewswire.com/news-releases/gravity4-announces-6th-acquisition-of-zurmo-adding-crm-to-its-cross-platform-enterprise-app-center-300019647.html&ei=r4iVVc2_M8GSsQW-25_IBg&bvm=bv.96952980,d.b2w&psig=AFQjCNFWJhf3J6R9M6ESFEZbB8B70RmCuQ&ust=1435949598681855

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://rocketfuel.com/about-rocket-fuel/media-kit&ei=5oiVVab-KMu_sAWo4JugBw&bvm=bv.96952980,d.b2w&psig=AFQjCNHqs-Vtt-64DJ4Yxymk6lHxZ0jXFA&ust=1435949644848969

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.metaswitch.com/resources/images/francisco-partners-logo&ei=TYmVVdj_JMSfsAXYyaPQDQ&bvm=bv.96952980,d.b2w&psig=AFQjCNFsbPMibI_HPo2M4t_FJXDTyjBWHw&ust=1435949752592910

http://www.clicksoftware.com/

http://info.singtel.com/personal/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.trustwave.com/&ei=M4qVVfHuL4P2sAWP8oeQAw&bvm=bv.96952980,d.b2w&psig=AFQjCNGRb-57rv8McMAfILkcHWcF-aVcZg&ust=1435949995673750

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://evpa.eu.com/member/permira/&ei=-oqVVZOpEYiTsAX-hbmICw&bvm=bv.96952980,d.b2w&psig=AFQjCNG6iLuZirnUIQMiuaj9hnwmdRuq6g&ust=1435950195538447

http://www.cppib.com/en/home.html

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://careers.informatica.com/&ei=h4qVVYelN4b6sAXymb6gBA&bvm=bv.96952980,d.b2w&psig=AFQjCNGfJM4r79PeWnYbmUmxMzcVQwHAzw&ust=1435950082393819

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.dakotafinancialnews.com/td-securities-boosts-dh-corp-price-target-to-c45-00-dh/65686/&ei=O_VVVfueNYn4gwTmxYHoDA&bvm=bv.93564037,d.eXY&psig=AFQjCNEg6dizDasmVZXdhkDQK5_W8o7VUA&ust=1431783092393329

http://www.fundtech.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://logosandbrands.directory/lexmark-international-inc/&ei=XvZVVczUCMK_ggTqtIDIDw&bvm=bv.93564037,d.eXY&psig=AFQjCNGTdKRbR3iO9tN8lulDS8PLUaVA4w&ust=1431783337228523

http://www.kofax.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.dakotafinancialnews.com/stamps-com-price-target-raised-to-65-00-stmp/96538/&ei=H_dVVY35D5KCgwSBhYHYBg&bvm=bv.93564037,d.eXY&psig=AFQjCNGQcAwh-X7JBWi1NVyE865926APNQ&ust=1431783580972904

http://www.endicia.com/

http://www.mitel.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://me-newswire.net/news/mavenir-systemsreg-announces-an-agreement-to-acquire-ulticom-inc/en&ei=9AZWVZ3PN4HZggThj4DIAw&bvm=bv.93564037,d.eXY&psig=AFQjCNEMtg1g0Ygt-pvvqFoNafeD_JwFeg&ust=1431787630819377

http://www.e2open.com/

Selected Noteworthy Software M&A Transactions


Date

Announced Acquiror Target

Total Transaction

Value ($mil)

Enterprise Value / LTM

Revenue EBITDA

12/18/14

$208.5 3.7x 54.7x

12/05/14

306.9 2.3

11/05/14

522.1 3.6 9.6

09/27/14

4,533.9 3.7 23.8

09/22/14

320.0 1.9

09/18/14

8,468.0 11.5

09/15/14

2,302.4 2.8 13.7

09/02/14

2,366.4 2.9 24.5

07/09/14

610.0 1.5

06/23/14

5,259.3 3.4 17.5

06/13/14

2,613.4 12.6 53.6

03/18/14

930.0 3.0

03/06/14

453.3 7.0

02/19/14

375.0 4.7

01/30/14

746.4 4.1

_____________________

Source: Dealogic, Capital IQ, and Robert W. Baird & Co. M&A analysis.

https://us.dealertrack.com/content/dealertrack/en.html

http://incadea.com/pages/en.php

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://demodia.com/who-we-are/partners&ei=rH9vVfOsJIPRtQWRuIDwAw&bvm=bv.94911696,d.aWw&psig=AFQjCNEH1HjoWEmLjRFO7Vgu-85zmv47hQ&ust=1433456924528419

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Actuate_Corporation_logo.png&ei=BoBvVbWCIoifsAWSl4DYBw&bvm=bv.94911696,d.aWw&psig=AFQjCNGB7uH_4s3Mpg79ygEwfTLNTgKZKw&ust=1433456990115958

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.darkdaily.com/jjs-ortho-clinical-diagnostics-business-snapped-up-by-carlyle-group-for-4-15-billion-in-a-sale-that-will-impact-ocds-clinical-laboratory-customers&ei=QIBvVYSTNYm-sAWQuYDoDw&bvm=bv.94911696,d.aWw&psig=AFQjCNE63tbaYKaUMAk40jGOaleU_LMSLg&ust=1433457075482592

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/Euromoney_Institutional_Investor&ei=qIBvVbfpLYucsAXpqYIg&bvm=bv.94911696,d.aWw&psig=AFQjCNF9RorvLMwXIMFStvPmaCWeNoQwLg&ust=1433457145020738

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.financeasia.com/News/390480,dealogic-league-table-roundup-september-19.aspx&ei=34BvVfDZFMa-sAXA4YHQAg&bvm=bv.94911696,d.aWw&psig=AFQjCNHfOO7nY8y2CQA84AZ45UJLKWM_Kw&ust=1433457234236840

http://www.vistaequitypartners.com/

http://www.tibco.com/

http://www.symphonytg.com/

http://construction.com/

http://www.sap.com/index.html

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.americanbankingnews.com/2015/06/04/micro-focus-international-plcs-buy-rating-reiterated-at-canaccord-genuity-mcro-5/&ei=WqNwVZ6uB4LZtQXXgoPwBw&bvm=bv.94911696,d.b2w&psig=AFQjCNEiTosX7hCm57j3iidWBGBiHqKsGg&ust=1433531605639211

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.ovationincentives.com/case-study/attachmate.html&ei=pKNwVbqtDsPDsAWquoOoBA&bvm=bv.94911696,d.b2w&psig=AFQjCNHrIDw68lhPV8SSitzkRaAom9jP9Q&ust=1433531676833557

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.compuware.com/&ei=FaRwVcf8I4zJtQWi9YHgDg&bvm=bv.94911696,d.b2w&psig=AFQjCNEKdvHmvF-0KBOUrA_UndUMELC4Yg&ust=1433531787173856

http://www.teleperformance.com/en-us/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://contactcenterworld.com/company/aegis-bpo-services-limited.aspx&ei=tbRwVbCiMsTnsAWZxoDYAQ&bvm=bv.94911696,d.aWw&psig=AFQjCNEHw8cYrfNc0h2mPpY8aEDt3D0I3g&ust=1433536033851814

http://www.travelclick.com/en

http://www.serena.com/index.php/en

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://cobre.eletrica.ufpr.br/chipin/&ei=B61wVcalHcausAWzqoL4BQ&bvm=bv.94911696,d.aWw&psig=AFQjCNHBOoxdhL0HwbnE6PGvx-MpJCMaQA&ust=1433534083844619

http://www.coverity.com/

http://www.3ds.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Accelrys_logo.svg&ei=v65wVZWoJ4OKsAW_1oNY&bvm=bv.94911696,d.aWw&psig=AFQjCNEIhgEpEQur99l7D_hJaUnVzVEMPA&ust=1433534512569860

Recent Software IPOs


Trade Date Issuer Ticker Filing Range Offer Price

Gross Proceeds(1)

($ in

millions)

Offer to

Current(2)

LTM

Revenue

Forward Year

Revenue

Growth

12/09/15

TEAM $19.00 - 20.00 $21.00 $462.0 43.2% $353.4 31.0%

11/18/15

MIME 10.00 - 12.00 10.00 77.5 (4.0%) 128.4 19.4%

11/12/15

INST 16.00 - 18.00 16.00 81.0 30.1% 65.1 44.8%

10/06/15

PSTG 16.00 - 18.00 17.00 488.8 (8.4%) 273.8 51.4%

07/16/15

RPD 13.00 - 15.00 16.00 118.7 (5.4%) 91.6 24.9%

06/25/15

APPF 12.00 - 14.00 12.00 74.4 21.7% 53.7 43.1%

06/25/15

XTLY 10.00 - 12.00 8.00 64.7 6.6% 63.7 23.5%

06/18/15

MB 13.00 - 15.00 14.00 100.1 8.1% 76.6 31.5%

06/04/15

EVH 14.00 - 16.00 17.00 195.5 (28.8%) 100.9 34.8%

05/20/15

PGND 22.00 - 24.00 25.00 255.9 26.2% 291.1 8.1%

05/20/15

SHOP 14.00 - 16.00 17.00 150.5 51.8% 123.6 33.0%

04/23/15

APIC 16.00 - 18.00 17.00 87.0 (52.8%) 61.9 29.7%

02/11/15

INOV 24.00 - 26.00 27.00 684.8 (37.0%) 361.5 21.7%

01/22/15

BOX 11.00 - 13.00 14.00 175.0 (0.3%) 192.6 29.4%

12/11/14

HDP 12.00 - 14.00 16.00 100.0 36.9% 44.2 70.6%

12/11/14 NEWR 20.00 - 22.00 23.00 115.0 58.4% 85.0 31.8%

12/11/14 WK 13.00 - 15.00 14.00 100.8 25.5% 106.1 22.7%

11/05/14

UPLD 12.00 - 14.00 12.00 46.2 (41.3%) 60.2 18.9%

10/08/14

HUBS 22.00 - 24.00 25.00 143.8 125.2% 104.1 25.2%

10/02/14

YDLE 11.00 - 13.00 12.00 84.1 N/A(3) 84.3 19.9%

09/23/14

CYBR 13.00 - 15.00 16.00 98.6 182.1% 75.7 9.6%

07/17/14

TUBE 7.00 - 8.00 7.00 50.3 94.3% 85.7 25.1%

07/17/14

GLOB 10.00 10.00 67.3 275.1% 179.1 18.8%

06/11/14

MOBL 8.00 - 10.00 9.00 115.0 (59.9%) 108.0 23.2%

06/05/14 ANET 36.00 - 40.00 43.00 225.8 81.0% 417.1 21.0%

_____________________

Source: Dealogic and Capital IQ.

(1) Includes proceeds from exercised overallotments.

(2) Represents the percentage change in stock price from trade date to December 31, 2015.

(3) Company has been acquired.

http://www.appfolio.com/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://datafox.co/xactly-corp&ei=houVVYe9GIaKsAWm3ba4Cg&bvm=bv.96952980,d.b2w&psig=AFQjCNGJ_ECxqPivFSuILdHg5xcRM4FZVA&ust=1435950331956663

https://www.mindbodyonline.com/

http://www.evolenthealth.com/

http://www.pressganey.com/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://press.shopify.com/&ei=EYyVVdzeBszwsAXw5pKwCg&bvm=bv.96952980,d.b2w&psig=AFQjCNHOrpR1LSdmMolLhEZOsl18AQCbIg&ust=1435950466740495

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://logonoid.com/box-logo/&ei=UBNWVafJBsK8ggTc-ID4Ag&bvm=bv.93564037,d.aWw&psig=AFQjCNEXKthDfdK9omqf48rQkAMacNBw6A&ust=1431790795843349

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCImeirPMhcYCFUkjrAodMJoAKw&url=http://www.sakurasky.com/sakura-sky-partnership-hortonworks/&ei=jWx4VcmjIMnGsAWwtILYAg&bvm=bv.95039771,d.b2w&psig=AFQjCNE8v2o4DSm8RdBaeKj39tgnOlGltw&ust=1434041865937897

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCKaUgNDMhcYCFUNgrQod6aYAQQ&url=http://newrelic.com/about/media-assets&ei=ymx4VaaHC8PAtQXpzYKIBA&bvm=bv.95039771,d.b2w&psig=AFQjCNFCchh1C0woVV0TaBQhlVu1NgNL_g&ust=1434041919661014

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://tec.wdesk.com/&ei=fztvVdHNCITesAXRwYH4Bw&bvm=bv.94911696,d.b2w&psig=AFQjCNGsv-6UN0dNzyvFkt3ZtWvB2QlsKw&ust=1433439479010792

http://uplandsoftware.com/

http://www.hubspot.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.americanbankingnews.com/2015/06/03/brokerages-expect-yodlee-to-announce-0-07-earnings-per-share-nasdaqydle/&ei=FDxvVYbcJYPutQWwxoLICQ&bvm=bv.94911696,d.b2w&psig=AFQjCNG516YteRIQaPrTFBGDCQ2RnAz7oA&ust=1433439624536867

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNrI5MvThcYCFYc3rAod1vwAAA&url=http://www.smarteranalyst.com/2015/04/08/company-update-nasdaqcybr-cyberark-software-ltd-security-brief-securing-third-party-remote-access-a-weak-link-in-enterprise-it/&ei=GHR4VdrcF4fvsAXW-QM&bvm=bv.95039771,d.b2w&psig=AFQjCNFzI4tXdVlzDC3L2EuIGLcZs7JsdA&ust=1434043715248844

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.madisonboom.com/2013/01/03/wpp-invests-usd70m-in-globant/globant-logo-630/&ei=dD1vVeTFE8XisAWd5YHYAQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGWMfEYlZsc8uIchY9NBvSgjtf_CA&ust=1433439889930919

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.mobileiron.com/en/company/press-room/press-and-analyst-resources&ei=ekFvVfmHLYbusAXvn4LIBg&bvm=bv.94911696,d.b2w&psig=AFQjCNFh6FFL2iuiJ2NaJy3Fd8JNgV1e8A&ust=1433441004690358

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.jacobsschool.ucsd.edu/external/external_cap/cap_tech_talks/event.sfe?id=2035&ei=9EFvVZPGF4XosAXqiYLwCQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGN1OWB_MFpg-LBpRNwVagWydyrjQ&ust=1433441124740626

Recent Software IPOs


Trade

Date Issuer Ticker Filing Range

Offer

Price

Gross Proceeds(1)

($ in

millions)

Offer to

Current(2)

LTM

Revenue

Forward Year

Revenue

Growth

05/14/14

ZEN $8.00 - 10.00 $9.00 $115.0 193.8% $83.2 26.0%

04/14/14

PAYC 18.00 - 20.00 15.00 114.6 150.9% 117.0 19.8%

04/03/14

FIVN 9.00 - 11.00 7.00 80.5 24.3% 89.3 28.2%

03/27/14

HIVE 9.00 - 11.00 10.00 75.0 (48.9%) 107.1 27.4%

03/20/14

AMBR 10.50 - 12.50 13.00 110.5 (60.8%) 52.5 13.6%

03/20/14

ATEN 13.00 - 15.00 15.00 192.7 (56.3%) 141.7 31.7%

03/18/14

PCTY 14.00 - 16.00 17.00 137.7 138.5% 90.5 13.4%

03/13/14

CSLT 13.00 - 15.00 16.00 204.2 (73.3%) 13.0 67.2%

02/27/14 VRNS 19.00 - 21.00 22.00 121.4 (14.5%) 74.6 19.4%

_____________________

Source: Dealogic and Capital IQ.

(1) Includes proceeds from exercised overallotments.

(2) Represents the percentage change in stock price from trade date to December 31, 2015.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Zendesk_logo_RGB.png&ei=VkJvVf6TPMivsAX_yIGIDQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGzg9jOlUToLKcxrdjW21JQV2u9Lw&ust=1433441223571576

http://www.paycom.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.five9.com/&ei=-kJvVeiaC4WdsAXYlYL4Dg&bvm=bv.94911696,d.b2w&psig=AFQjCNF3Dp5fwknrLxTlOvLVvx2e_8aTeQ&ust=1433441400755036

http://www.aerohive.com/

http://www.amberroad.com/home.shtml

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://aws.amazon.com/marketplace/seller-profile?id=0cda37b3-aa1a-4c9d-8daf-c396572cc98b&ei=tUNvVaT0FMKKyATJ04PACA&bvm=bv.94911696,d.cGU&psig=AFQjCNHfY5BIp_DEMiiio643Cv7QDSkJoQ&ust=1433441568399331

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://trademarks.justia.com/774/06/paylocity-77406931.html&ei=MkRvVYqBEc2tyATN8oLwCw&bvm=bv.94911696,d.cGU&psig=AFQjCNFzqSpslF9M0vd1THao8agAr8MTmQ&ust=1433441689154044

http://www.castlighthealth.com/

http://www.varonis.com/

Biographies


PETER KIES – MANAGING DIRECTOR, HEAD OF TECHNOLOGY & SERVICES GROUP

T: +1.414.765.7262 E: [email protected]

Peter Kies is a Managing Director and Head of Baird’s Technology & Services Group. From 2010-2013, Peter was Co-Head of Equity Capital Markets, where he led the group to achieve three consecutive record years. He is a member of the Investment Banking Management Committee, the Capital Commitment Committee and a Director of the Baird Foundation. Prior to assuming joint leadership of the capital markets effort, Peter built and led several investment banking industry teams and, over the past 20+ years, he has extensive experience in originating and executing mergers, acquisitions and

equity transactions across a wide range of industries. Since joining Baird in 1992, he has served the firm in numerous capacities, including Chairman of the Investment Banking and firm-wide Recruiting Committees and as a member of the Investment Committee of the Baird Venture Fund. Prior to joining Baird, Peter was a Director of Investments for The Equitable and on the Executive Staff of Governor Tommy Thompson. Peter received his BBA and MS from the University of Wisconsin-Madison

and is a member of the University of Wisconsin Foundation Board of Directors.

MIKE MAGLUILO – MANAGING DIRECTOR, TECHNOLOGY INVESTMENT BANKING


Mike Magluilo is a Managing Director in Baird’s Technology & Services Group with a focus on the enterprise software, SaaS, and information technology sectors. Mike’s career includes 20+ years as an investment banker, corporate executive, and technology investor. In addition to a 12-year career as an investment banker with

Kidder Peabody, Robert W. Baird and Daniels & Associates, he held senior corporate development roles with Level 3 Communications and VIA Networks. Mike’s prior role with Baird involved several years as a senior investment banker in London helping build Baird’s European investment banking practice. Prior to re-joining Baird in 2014, Mike was a growth stage private technology investor with Delta-v Capital, where he participated in the firm’s investments in Borderfree, Cloud Sherpas, Lytx, LogRhythm,

Zayo, and Kony. He was also involved in the firm's exit of its investment in Drillinginfo.

Mike graduated summa cum laude with a BS in Finance from the University of Illinois at Urbana-Champaign, where he was an Evans Scholar.

CHASE SANDERS – MANAGING DIRECTOR, TECHNOLOGY INVESTMENT BANKING


Chase Sanders is a Managing Director in Baird’s Technology & Services group, where he focuses on Enterprise Software, SaaS and Healthcare IT. Chase has 23 years of total experience, including 18 years as an advisor to technology businesses and five years as

CEO of a growth company. Prior to joining Baird, Chase was a partner and Managing Director with Signal Hill Capital Group, a boutique investment bank focused on growth stage IT companies. Prior to that, Chase was CEO of Atlantis LLC, a consumer home services company that he took from start-up to operations in eight states before successfully exiting the business.

Previously, Chase was the senior east coast software banker with Bear, Stearns in New York, and also served in the media and telecom investment banking group at Bank of

America Securities. Chase began his career as a corporate and M&A attorney with the leading law firms of DLA Piper and Hogan Lovells. Chase received a BA in Economics from the University of Virginia, where he was elected to Phi Beta Kappa, a Master in Public Policy from the Harvard Kennedy School of Government, and a JD cum laude from Harvard Law School.

Biographies


JONATHAN HARRISON – MANAGING DIRECTOR, EUROPEAN INVESTMENT BANKING


Jon Harrison has worked in the European Investment Banking industry for 16 years. Jon joined Baird at the end of 2008, after 8 years at Deutsche Bank where he was most recently responsible for the European Business Services franchise. Jon has executed a number of flagship transactions for a variety of corporate and financial investor clients. Since joining Baird he has worked on a number of international Business Services

transactions. Prior to investment banking Jon worked as an auditor and an economist. Jon has a first class degree in Economics and an M.Phil. in Finance.

OWEN HART – MANAGING DIRECTOR


Owen Hart joined Baird in 2012 as a Managing Director in its M&A practice. Mr. Hart provides strategic and analytical support on buyside and sellside acquisitions / divestitures, mergers, strategic alternatives, and other financial advisory services

across multiple sectors, including Consumer, Technology, Business Services, and Real Estate. Prior to joining Baird, Mr. Hart was a Managing Director and the Head of West Coast Mergers & Acquisitions for Cowen and Company, where he principally focused on Consumer and Technology related M&A activity. Prior to Cowen, Mr. Hart spent four years as a Founding Partner at Thomas Weisel Partners where he led their Consumer, Business Services, Semiconductor, Semiconductor Capital Equipment, and Storage M&A practices. Prior to Thomas Weisel Partners, Mr. Hart held senior banking roles at

Montgomery Securities, where he helped found their Business Services Investment Banking practice and led their Business Services M&A practice. Mr. Hart also helped found Lazard Freres & Co.’s Real Estate Group and started his career at Drexel

Burnham Lambert, where he was a member of their Real Estate group.

JOHN MORIARTY – MANAGING DIRECTOR, TECHNOLOGY INVESTMENT BANKING


John Moriarty joined Baird in December 2007 and is a Managing Director in the Technology Investment Banking Group. Prior to joining Baird, Mr. Moriarty spent 13 years in the investment banking group at A.G. Edwards (now Wachovia Securities) and established A.G. Edwards’ West Coast Technology Investment Banking practice. During his tenure at A.G. Edwards, Mr. Moriarty led his clients in a variety of transactions including public and private equity financings, convertible securities offerings, buy- and sell-side merger and acquisition assignments, and other financial advisory activities.

From 1989 to 1992, Mr. Moriarty worked for KPMG Peat Marwick where he was a senior level auditor responsible for public and private company financial audits.

John received a BS degree in Accounting, cum laude, from Georgetown University, and a MBA in Finance and Marketing from The Kellogg Graduate School of Management at

Northwestern University. John is also a graduate from the Securities Industry Institute at The Wharton School of the University of Pennsylvania. John is a member of the Board of Directors of the Second Harvest Food Bank of Santa Clara and San Mateo

Counties.

mailto:[email protected]

Biographies


DAVID SILVER – MANAGING DIRECTOR, HEAD OF EUROPEAN INVESTMENT BANKING


David Silver joined Baird in January 1998 having practiced as a corporate and banking lawyer at Berwin Leighton. He is a founder member of Baird’s M&A team in Europe and has extensive experience advising private equity clients, corporates and entrepreneurs in the US and Europe. Mr. Silver is Head of European Investment Banking and is responsible for Baird’s Investment Banking and European business

services practice and coverage of the financial sponsor community. Mr. Silver has an MBA, with distinction, from London Business School and a law degree from Leeds University.


Appendix


Appendix


Application Software – Operating Statistics & Valuation Multiples

ERP & HCM

_____________________

Source: Capital IQ.

($ in millions except per share data)

12/31/2015

% of

Price per 52-Week LTM Market Enterprise 2016E 2016E 2016E EV/LTM EV/2016E EV/2017E EV/LTM EV/2016E EV/2017E

Company Name Share High Change Cap Value 2016E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDA

American Software, Inc. $10.18 89.6% 16.6% $292 $231 $121 5.9% 17.8% 7.9% 2.1 x 1.9 x N/A 15.2 x 10.7 x N/A

BasWare Oyj 40.53 78.1% (18.2%) 574 535 184 15.8% 12.9% 103.8% 3.5 2.9 2.5 x N/A 22.6 13.2 x

Benefitfocus, Inc. 36.39 76.6% 10.8% 1,061 1,027 229 25.4% (10.6%) N/A 6.0 4.5 3.7 N/A N/A N/A

Cornerstone OnDemand, Inc. 34.53 84.8% (1.9%) 1,880 1,897 439 28.3% 8.5% 656.9% 5.9 4.3 3.5 N/A N/A N/A

Halogen Software Inc. 5.15 64.1% (29.8%) 113 75 74 12.8% (6.1% ) N/A 1.2 1.0 0.9 N/A N/A N/A

Intuit Inc. 96.50 88.4% 5.8% 25,476 25,852 4,735 5.3% 37.7% 18.7% 6.0 5.5 4.9 22.1 14.5 12.4

MINDBODY, Inc. 15.13 82.3% N/A 593 509 133 32.5% (13.3%) N/A 5.5 3.8 3.0 N/A N/A N/A

NetSuite Inc. 84.62 77.0% (22.5%) 6,726 6,636 961 29.9% 7.9% 43.7% 9.6 6.9 5.4 N/A N/A N/A

Paycom Software, Inc. 37.63 81.2% 42.9% 2,224 2,202 289 31.1% 21.2% 28.6% 10.8 7.6 5.7 N/A 35.9 23.9

Paylocity Holding Corporation 40.55 86.5% 55.3% 2,061 1,983 242 33.4% 8.3% 54.3% 11.9 8.2 6.4 N/A N/A N/A

QAD Inc. 20.52 71.5% (8.2%) 378 267 291 4.0% 9.6% 22.4% 0.9 0.9 0.9 13.4 9.5 8.4

Sage Group plc 8.90 96.5% 25.7% 9,603 10,107 2,199 7.0% 29.3% 1.8% 4.7 4.6 4.3 17.2 15.7 14.7

Shopify Inc. 25.80 61.2% N/A 1,971 1,784 280 43.1% 4.5% N/A 10.5 6.4 4.7 N/A N/A N/A

The Ultimate Software Group 195.51 90.4% 33.2% 5,602 5,482 759 23.0% 25.0% 26.8% 9.4 7.2 5.9 N/A 28.9 24.5

TOTVS S.A. 7.83 77.3% (38.4%) 1,280 1,260 556 15.4% 22.5% 10.0% 2.7 2.3 2.1 13.1 10.1 9.1

Tyler Technologies, Inc. 174.32 94.7% 59.3% 5,916 5,669 764 30.9% 27.3% 35.4% 10.1 7.4 6.4 44.8 27.2 22.8

Upland Software, Inc. 7.05 68.0% (26.3%) 110 107 73 4.5% 8.4% 68.1% 1.6 1.5 1.3 N/A 17.4 12.9

WageWorks, Inc. 45.37 69.2% (29.7%) 1,631 1,232 372 11.7% 29.2% 16.4% 3.7 3.3 3.0 22.7 11.4 9.6

Workday, Inc. 79.68 83.7% (2.4%) 15,458 14,070 1,547 33.6% 7.5% 52.6% 13.2 9.1 6.9 N/A N/A N/A

Xactly Corporation 8.53 79.9% N/A 249 213 93 23.6% (10.9%) N/A 3.0 2.3 1.9 N/A N/A N/A

Xero Limited. 13.57 74.7% 7.6% 1,839 1,685 202 57.4% (17.0%) N/A N/A 8.3 5.8 N/A N/A N/A

Yonyou Network Technology 4.90 42.8% 56.1% 7,151 7,270 859 17.3% 16.0% 10.8% 10.9 8.5 7.0 N/A N/A 46.6

Mean 7.2% $4,190 $4,095 $700 22.4% 10.7% 72.4% 6.3 x 4.9 x 4.1 x 21.2 x 18.5 x 18.0 x

Median 5.8% 1,860 1,734 290 23.3% 9.1% 27.7% 5.9 4.5 4.3 17.2 15.7 13.2

Revenue EBITDA Valuation Multiples

IT Conglomerates – Operating Statistics & Valuation Multiples


12/31/2015

% of



Hewlett Packard Enterprise $15.20 87.6% N/A $26,486 $32,821 $50,802 (2.7%) 15.8% 6.6% 0.6 x 0.6 x 0.6 x 4.3 x 4.1 x 4.0 x

International Business Machines Corporation137.62 78.1% (11.4%) 133,507 163,756 80,245 (2.0%) 27.3% 1.6% 2.0 2.0 2.0 7.6 7.5 7.1

EMC Corporation 25.68 85.5% (12.1%) 49,789 51,102 25,788 3.6% 26.2% 8.3% 2.1 2.0 1.9 9.8 7.6 7.4

Microsoft Corporation 55.48 97.6% 22.7% 443,169 382,664 95,262 4.9% 35.8% 40.2% 4.2 4.0 3.8 11.8 11.2 9.8

SAP SE 80.25 97.6% 15.5% 95,929 102,107 23,409 5.0% 35.4% 4.7% 4.6 4.4 4.1 14.3 12.3 11.5

Oracle Corporation 36.38 80.3% (17.6%) 153,471 143,484 37,783 0.6% 46.0% 0.6% 3.8 3.8 3.7 9.4 8.3 8.1

Cisco Systems, Inc. 26.95 88.9% 0.6% 137,841 103,363 49,793 0.7% 28.6% (0.3% ) 2.1 2.1 N/A 7.6 7.3 7.0

Intel Corporation 34.45 91.9% (2.2%) 162,570 162,591 57,865 4.7% 41.4% 7.5% 2.9 2.8 2.7 7.0 6.8 6.6

Mean (0.6%) $150,345 $142,736 $52,618 1.8% 32.1% 8.6% 2.8 x 2.7 x 2.7 x 9.0 x 8.1 x 7.7 x

Median (2.2%) 135,674 123,423 50,298 2.1% 32.0% 5.6% 2.5 2.4 2.7 8.5 7.5 7.2


Appendix


CRM & Marketing

IM & Analytics

_____________________

Source: Capital IQ.


12/31/2015

% of



Acxiom Corporation $20.92 89.3% 3.2% $1,629 $1,657 $872 (0.4%) 15.9% (6.7%) 1.6 x 1.9 x 1.8 x 10.5 x 12.0 x 9.6 x

Adobe Systems Incorporated 93.94 97.4% 29.2% 46,857 44,776 5,742 19.8% 36.9% 23.3% 9.3 7.8 6.4 36.0 21.2 16.6

Bazaarvoice, Inc. 4.38 46.6% (45.5%) 353 300 210 6.6% 3.1% N/A 1.5 1.4 1.3 N/A 46.5 25.8

Blackbaud Inc. 65.86 96.1% 53.6% 3,035 3,261 740 15.3% 23.0% 17.3% 5.3 4.4 4.1 33.4 19.2 17.4

Callidus Software Inc. 18.57 85.8% 13.7% 1,042 947 212 22.5% 11.6% 35.5% 5.8 4.5 3.8 N/A 38.5 28.9

ChannelAdvisor Corporation 13.85 62.4% (35.8%) 348 291 113 15.6% 0.4% N/A 3.1 2.6 2.3 N/A N/A N/A

Cvent, Inc. 34.91 93.7% 25.4% 1,465 1,306 231 23.6% 10.8% 4.3% 7.4 5.6 4.6 N/A N/A 38.2

Demandware, Inc. 53.97 71.1% (6.2%) 2,034 1,851 302 28.7% 7.9% 33.2% 8.6 6.1 4.8 N/A N/A N/A

eGain Corporation 4.26 80.1% (17.8%) 115 131 69 (1.6%) (2.3%) N/A 1.8 1.9 N/A N/A N/A N/A

Five9, Inc. 8.70 96.0% 94.2% 439 427 148 17.1% (1.3%) N/A 3.5 2.9 2.4 N/A N/A N/A

HubSpot, Inc. 56.31 93.7% 67.5% 1,920 1,816 240 33.7% (8.8%) N/A 11.1 7.6 5.8 N/A N/A N/A

inContact, Inc. 9.54 80.0% 8.5% 588 562 258 17.8% 7.3% 54.8% 2.7 2.2 1.8 N/A 30.0 23.4

Interactive Intelligence Group 31.42 62.4% (34.4%) 682 652 441 13.4% 4.3% (10.2% ) 1.7 1.5 1.3 N/A 34.4 23.2

Jive Software, Inc. 4.08 64.5% (32.3%) 310 203 208 6.3% 4.7% 62.0% 1.0 1.0 0.9 N/A 20.6 11.7

LinkedIn Corporation 225.08 81.5% (2.0%) 29,505 27,557 3,900 30.6% 26.6% 38.1% 9.9 7.1 5.6 N/A 26.6 19.4

LivePerson Inc. 6.75 47.3% (52.1%) 387 346 261 9.1% 10.3% 26.4% 1.5 1.3 1.2 20.9 12.8 11.4

Marin Software Incorporated 3.58 41.5% (57.7%) 133 103 113 5.7% 0.1% N/A 1.0 0.9 0.8 N/A N/A 14.7

Marketo, Inc. 28.71 80.6% (12.3%) 1,243 1,137 277 32.1% (5.3%) N/A 5.9 4.1 3.2 N/A N/A N/A

NICE Systems Ltd. 57.62 85.5% 15.1% 3,493 3,059 983 6.3% 27.3% 7.7% 2.9 3.1 2.9 13.9 11.4 10.2

salesforce.com, inc. 78.40 94.6% 32.2% 52,058 52,763 8,079 21.5% 20.1% 35.9% 8.4 6.5 5.4 N/A 32.6 25.8

ServiceSource International, Inc. 4.61 75.0% (1.5%) 398 313 260 3.9% (1.8%) N/A 1.2 1.2 1.1 N/A N/A N/A

TubeMogul, Inc. 13.60 57.9% (39.7%) 477 394 217 24.2% 1.3% N/A 2.5 1.8 1.5 N/A N/A 21.8

Veeva Systems Inc. 28.85 85.7% 9.2% 3,837 3,497 508 25.4% 29.8% 31.0% 9.2 6.9 5.6 38.5 23.1 18.3

Web.com Group, Inc. 20.01 76.8% 5.4% 1,018 1,448 577 3.6% 28.9% 8.6% 2.7 2.5 2.4 13.9 8.7 8.0

Zendesk, Inc. 26.44 93.8% 8.5% 2,345 2,065 289 40.1% 0.5% N/A 11.2 7.1 5.3 N/A N/A N/A

Mean 1.1% $6,228 $6,034 $1,010 16.8% 10.1% 24.1% 4.8 x 3.8 x 3.2 x 23.9 x 24.1 x 19.1 x

Median 3.2% 1,042 1,137 261 17.1% 7.3% 26.4% 3.1 2.9 2.6 20.9 22.1 18.3



12/31/2015

% of



Box, Inc. $13.96 56.4% N/A $1,653 $1,486 $392 30.9% (17.7%) N/A 5.3 x 3.8 x 3.0 x N/A N/A N/A

Datawatch Corporation 5.98 65.8% (33.5%) 70 34 35 11.4% (10.1%) N/A 1.1 1.0 N/A N/A N/A N/A

Fair Isaac Corporation 94.18 96.5% 30.4% 2,927 3,449 883 3.9% 26.9% 20.5% 4.1 3.9 3.7 18.2 x 14.5 x 13.7 x

Globant S.A. 37.51 98.1% 140.1% 1,276 1,203 302 20.5% 15.6% 30.3% 5.1 4.0 3.3 42.6 25.5 21.5

IntraLinks Holdings, Inc. 9.07 70.9% (23.8%) 529 550 294 6.6% 15.1% 12.4% 2.0 1.9 1.7 N/A 12.4 N/A

MicroStrategy Inc. 179.29 79.2% 10.4% 2,038 1,581 563 6.6% 30.7% 10.4% 3.0 2.8 2.6 11.3 9.1 7.5

Open Text Corporation 47.93 77.6% (16.4%) 5,816 6,694 1,868 2.2% 36.0% 9.1% 3.7 3.6 3.5 13.1 10.0 9.7

Qlik Technologies, Inc. 31.66 73.8% 2.5% 2,945 2,624 719 16.8% 12.0% 48.9% 4.4 3.6 3.1 N/A 30.3 22.2

ServiceNow, Inc. 86.56 94.8% 27.6% 13,763 13,501 1,371 36.9% 18.1% 61.8% 14.7 9.9 7.5 N/A N/A 35.0

Splunk, Inc. 58.81 76.5% (0.2%) 7,628 6,679 856 31.3% 6.7% 50.8% 11.2 7.8 6.0 N/A N/A N/A

Tableau Software, Inc. 94.22 71.7% 11.2% 6,825 6,074 871 33.7% 13.0% 37.1% 10.2 7.0 5.3 N/A N/A 32.9

Teradata Corporation 26.42 56.2% (39.5%) 3,514 3,350 2,394 (4.9%) 24.0% 4.1% 1.3 1.4 1.4 7.6 5.8 5.6

Verint Systems Inc. 40.56 61.0% (30.4%) 2,525 2,912 1,232 5.2% 25.1% 8.4% 2.5 2.4 2.2 17.7 9.4 8.7

Workiva Inc. 17.57 93.5% 31.1% 717 658 178 24.0% (16.2%) N/A 4.9 3.7 3.0 N/A N/A N/A

Mean 8.4% $3,730 $3,628 $854 16.1% 12.8% 26.7% 5.3 x 4.0 x 3.6 x 18.4 x 14.6 x 17.4 x

Median 2.5% 2,726 2,768 787 14.1% 15.4% 20.5% 4.3 3.7 3.1 15.4 11.2 13.7


Appendix


PLM & Engineering

SCM & Logistics

Financial IT

_____________________

Source: Capital IQ.


12/31/2015

% of



Ansys, Inc. $92.50 94.0% 12.8% $8,232 $7,455 $1,029 8.3% 52.0% 11.1% 7.9 x 7.2 x 6.7 x 17.3 x 13.9 x 12.8 x

Aspen Technology, Inc. 37.76 80.8% 7.8% 3,145 2,963 485 6.0% 46.4% 3.8% 6.5 6.1 5.6 15.2 13.1 N/A

Autodesk, Inc. 60.93 92.6% 1.4% 13,729 12,932 2,114 (15.0%) (10.2%) N/A 5.1 6.1 5.3 N/A N/A N/A

AVEVA Group plc 23.86 68.9% 19.0% 1,525 1,369 313 3.8% 29.7% 4.0% 4.4 4.4 4.2 20.7 14.7 13.8

Cadence Design Systems Inc. 20.81 89.3% 9.7% 6,191 5,828 1,812 6.5% 31.6% 5.1% 3.5 3.2 3.0 14.6 10.2 10.1

Dassault Systemes SA 80.12 95.8% 31.8% 20,297 18,982 3,357 8.7% 34.7% 11.9% 6.3 5.7 5.2 23.7 16.3 14.9

Exa Corporation 11.61 94.1% (0.9%) 170 153 73 12.6% 6.2% 117.0% 2.4 2.1 1.8 N/A 33.7 21.1

GSE Systems Inc. 2.40 95.6% 50.9% 43 30 N/A N/A N/A N/A 0.5 N/A N/A N/A N/A N/A

Mentor Graphics Corp. 18.42 65.6% (15.2%) 2,164 2,145 1,223 3.7% 21.9% 4.2% 1.7 1.8 1.6 7.5 8.0 7.2

Nemetschek AG 49.99 96.9% 100.4% 1,924 1,904 341 12.0% 25.4% 16.3% 6.3 5.6 5.0 33.0 22.0 19.4

PDF Solutions Inc. 10.84 55.5% (27.1%) 341 214 115 17.9% 35.6% 36.9% 2.1 1.9 1.4 7.9 5.2 N/A

PTC Inc. 34.63 81.0% (5.5%) 3,966 4,361 1,203 (1.6%) 27.5% (0.8%) 3.5 3.6 3.7 17.2 13.2 13.8

Synopsys Inc. 45.61 86.4% 4.9% 6,908 6,148 2,412 6.3% 28.7% 18.6% 2.7 2.5 2.4 14.9 8.9 9.3

Mean 14.6% $5,280 $4,960 $1,206 5.8% 27.5% 20.7% 4.1 x 4.2 x 3.9 x 17.2 x 14.5 x 13.6 x

Median 7.8% 3,145 2,963 1,116 6.4% 29.2% 11.1% 3.5 4.0 4.0 16.2 13.2 13.8



12/31/2015

% of



Amber Road, Inc. $5.09 47.6% (50.2%) $134 $135 $76 11.1% (9.0%) N/A 2.0 x 1.8 x 1.5 x N/A N/A N/A

American Software, Inc. 10.18 89.6% 16.6% 292 231 121 5.9% 17.8% 7.9% 2.1 1.9 N/A 15.2 x 10.7 x N/A

Covisint Corporation 2.50 75.1% (5.7%) 99 57 90 12.7% 1.8% N/A 0.7 0.6 0.6 N/A 35.9 N/A

Fleetmatics Group PLC 50.79 80.8% 43.1% 1,960 1,797 344 20.8% 33.3% 24.6% 6.6 5.2 4.4 26.6 15.7 12.7 x

Kinaxis Inc. 33.82 95.7% 111.7% 823 736 109 22.1% 26.4% 1.7% 8.6 6.7 5.4 33.0 25.5 17.9

Manhattan Associates, Inc. 66.17 85.1% 62.5% 4,835 4,716 612 9.9% 33.1% 11.9% 8.6 7.7 7.0 29.8 23.3 20.9

MiX Telematics Limited 0.18 70.0% (29.2%) 144 87 100 7.9% 20.7% 12.4% 0.8 0.9 0.8 4.8 4.2 3.5

SciQuest, Inc. 12.97 71.0% (10.2%) 361 225 112 6.5% 20.3% 14.9% 2.2 2.0 1.8 31.8 9.9 8.4

SPS Commerce, Inc. 70.21 89.7% 24.0% 1,167 1,044 189 19.5% 14.5% 25.0% 6.9 5.5 4.6 N/A 38.2 29.9

Telenav, Inc. 5.69 57.9% (14.7%) 232 121 187 8.0% (12.1%) N/A 0.7 0.6 0.5 N/A N/A N/A

The Descartes Systems Group 20.07 96.6% 34.7% 1,520 1,467 207 11.4% 33.8% 16.1% 8.1 7.1 6.3 25.9 21.0 18.0

Mean 16.6% $1,052 $965 $195 12.3% 16.4% 14.3% 4.3 x 3.6 x 3.3 x 23.9 x 20.5 x 15.9 x

Median 16.6% 361 231 121 11.1% 20.3% 13.6% 2.2 2.0 3.1 26.6 21.0 17.9



12/31/2015

% of



ACI Worldwide, Inc. $21.40 82.9% 6.1% $2,531 $3,261 $1,096 5.2% 25.9% 8.2% 3.2 x 3.0 x 2.8 x 16.4 x 11.5 x 11.1 x

Bottomline Technologies 29.73 94.1% 17.6% 1,109 1,143 379 12.4% 22.0% 3.1% 3.4 3.0 2.7 26.4 13.7 11.9

Ebix Inc. 32.79 85.6% 94.9% 1,107 1,260 275 4.8% 37.8% 6.9% 4.9 4.6 N/A 14.0 12.1 N/A

Ellie Mae, Inc. 60.23 72.6% 49.4% 1,796 1,691 306 22.3% 27.2% 26.8% 7.2 5.5 4.4 34.7 20.3 14.7

Envestnet, Inc. 29.85 51.3% (39.3%) 1,071 1,012 584 39.7% 18.9% 46.9% 2.5 1.7 1.5 20.8 9.2 6.6

Fidessa group plc 29.54 79.1% (17.7%) 1,124 1,034 441 3.2% 21.8% 5.6% 2.3 2.3 2.3 13.2 10.7 10.1

Guidewire Software, Inc. 60.16 92.9% 18.8% 4,301 3,764 431 10.5% 18.2% 9.1% 9.8 8.7 7.7 N/A 47.9 33.8

Q2 Holdings, Inc. 26.37 86.6% 40.0% 1,021 901 143 31.8% (2.6%) N/A 9.0 6.3 4.9 N/A N/A N/A

Sapiens International 10.20 80.2% 40.6% 497 448 205 14.5% 15.2% 11.5% 2.5 2.2 N/A 16.7 14.3 N/A

SS&C Technologies Holdings 68.27 88.4% 17.6% 6,955 9,280 1,479 43.9% 43.0% 41.0% 10.3 6.3 5.8 31.5 14.6 12.8

Mean 22.8% $2,151 $2,379 $534 18.8% 22.8% 17.7% 5.5 x 4.4 x 4.0 x 21.7 x 17.1 x 14.4 x

Median 18.2% 1,117 1,202 405 13.5% 21.9% 9.1% 4.2 3.8 3.6 18.8 13.7 11.9


Appendix


Healthcare IT

Other Vertical Solutions

_____________________ Source: Capital IQ.


12/31/2015

% of



Accretive Health, Inc. $3.20 46.4% (53.4% ) $331 $193 $306 33.7% 9.2% 33.1% 2.0 x 0.6 x 0.3 x N/A 6.8 x 3.2 x

Allscripts Healthcare Solutions, Inc. 15.38 97.5% 20.4% 2,907 3,482 1,474 5.4% 19.5% 17.2% 2.5 2.4 2.2 35.5 x 12.1 10.7

athenahealth, Inc. 160.97 94.5% 10.5% 6,250 6,432 1,108 19.8% 20.8% 28.1% 7.3 5.8 4.8 N/A 27.9 22.5

Benefitfocus, Inc. 36.39 76.6% 10.8% 1,061 1,027 229 25.4% (10.6%) N/A 6.0 4.5 3.7 N/A N/A N/A

Castlight Health, Inc. 4.27 35.6% (63.5% ) 404 257 101 34.5% (46.3%) N/A 3.8 2.5 1.9 N/A N/A N/A

Cegedim SA 34.75 74.4% (1.6%) 485 682 568 2.9% 18.4% 5.9% 1.2 1.2 1.2 8.8 6.5 6.2

Cerner Corporation 60.17 79.5% (6.9%) 20,584 20,751 5,008 13.2% 33.6% 18.5% 5.1 4.1 3.7 18.3 12.3 11.0

CompuGroup Medical AG 36.80 91.9% 54.7% 1,830 2,206 637 7.0% 23.1% 19.6% 3.6 3.5 3.2 24.8 15.0 13.1

Computer Programs & Systems Inc. 49.75 79.0% (13.6% ) 562 524 195 5.6% 22.6% 32.9% 2.8 2.7 2.5 14.9 11.9 10.6

Connecture, Inc. 3.61 25.1% (59.9% ) 79 121 116 19.4% 15.1% 78.8% 1.3 1.0 0.9 25.1 6.9 4.3

Evolent Health, Inc. 12.11 52.3% N/A 714 794 213 32.8% (13.3%) N/A 5.2 3.7 2.9 N/A N/A N/A

HealthEquity, Inc. 25.07 70.1% (1.5%) 1,445 1,320 170 35.7% 32.8% 44.5% 11.4 7.8 5.9 42.2 23.6 18.3

Healthstream Inc. 22.00 67.9% (25.4% ) 696 551 233 12.4% 16.5% 15.4% 2.8 2.4 2.1 17.0 14.3 12.1

HMS Holdings Corp. 12.34 56.1% (41.6% ) 1,061 1,114 497 6.0% 24.2% 9.0% 2.4 2.2 1.9 13.1 9.3 7.3

iCAD, Inc. 5.17 46.4% (43.6% ) 81 65 34 (17.6%) 0.1% (99.4%) 1.4 1.9 1.5 11.8 N/A N/A

Imprivata, Inc. 11.30 52.2% (13.1% ) 283 231 142 20.0% (4.6% ) N/A 2.0 1.6 1.4 N/A N/A 33.1

IMS Health Holdings, Inc. 25.47 76.0% (0.7%) 8,369 12,263 3,160 9.0% 31.0% 10.8% 4.4 3.9 3.7 17.0 12.5 11.5

Inovalon Holdings, Inc. 17.00 50.4% N/A 2,565 2,136 537 21.7% 35.7% 24.8% 5.3 4.0 3.4 15.6 11.1 9.3

Medidata Solutions, Inc. 49.29 80.4% 3.2% 2,729 2,692 474 18.9% 24.6% 27.5% 7.0 5.7 4.8 N/A 23.1 18.4

Omnicell, Inc. 31.08 76.2% (6.2%) 1,101 1,043 554 15.2% 18.4% 19.9% 2.2 1.9 1.6 15.5 10.3 8.6

OSI Systems, Inc. 88.66 91.6% 25.3% 1,749 1,723 1,020 12.6% 18.2% 14.8% 1.8 1.7 1.6 11.1 9.3 8.9

Premier, Inc. 35.27 88.6% 5.2% 1,538 1,534 1,232 13.4% 37.8% 11.5% 1.5 1.2 1.1 4.5 3.3 3.0

Press Ganey Holdings, Inc. 31.55 87.3% N/A 1,663 1,832 348 9.8% 37.6% 12.4% 5.9 5.3 4.9 N/A 14.0 12.6

Quality Systems Inc. 16.12 86.0% 8.3% 981 870 524 4.4% 15.1% 6.7% 1.7 1.7 1.5 15.2 11.0 8.6

Sectra Aktiebolag (publ) 13.86 83.6% 8.7% 520 509 137 12.3% 20.1% 24.4% 4.2 3.7 3.4 25.6 18.5 16.3

The Advisory Board Company 49.61 82.2% 1.3% 2,078 2,582 892 14.9% 22.3% 16.8% 3.6 2.9 2.5 33.9 13.0 11.0


Mean (7.2%) $2,441 $2,609 $756 15.3% 16.7% 17.6% 4.0 x 3.2 x 2.7 x 20.4 x 13.5 x 12.1 x

Median (1.1%) 1,101 1,114 497 13.4% 20.1% 18.5% 3.6 2.7 2.5 17.0 12.2 11.0



12/31/2015

% of



2U, Inc. $27.98 70.5% 42.3% $1,275 $1,100 $196 31.5% (1.3% ) N/A 8.0 x 5.6 x 4.3 x N/A N/A N/A

Amdocs Limited 54.57 88.8% 18.4% 8,205 7,071 3,809 4.0% 20.9% 4.6% 1.9 1.9 1.8 10.0 x 8.9 x 8.4 x

AppFolio, Inc. 14.60 73.2% N/A 490 450 107 N/A N/A N/A 6.6 4.2 3.0 N/A N/A N/A

BroadSoft, Inc. 35.36 86.5% 21.8% 1,019 938 325 20.0% 24.2% 34.9% 3.7 2.9 2.4 N/A 11.9 8.3

Constellation Software Inc. 415.78 96.5% 40.8% 8,811 9,024 2,142 17.8% 25.4% 19.6% 5.1 4.2 3.6 28.7 16.6 14.4

CSG Systems International Inc. 35.98 92.6% 46.7% 1,176 1,261 778 3.8% 23.9% 5.5% 1.7 1.6 1.6 9.6 6.8 N/A

Epiq Systems, Inc. 12.98 68.0% (21.7% ) 490 877 547 9.2% 21.4% 10.9% 1.8 1.6 N/A 13.8 7.5 N/A

Evolving Systems Inc. 5.50 53.7% (37.5% ) 64 65 33 25.1% 24.9% 47.7% 2.5 2.0 1.8 10.4 8.0 6.5

Instructure, Inc. 20.82 88.1% N/A 549 610 105 44.8% (50.0%) N/A 9.4 5.8 4.1 N/A N/A N/A

Mobileye N.V. 42.28 65.6% 4.2% 9,162 8,982 366 52.4% 55.5% 61.6% N/A N/A N/A N/A 44.3 25.7

Model N, Inc. 11.16 87.9% 5.1% 298 207 112 17.4% (10.2%) N/A 2.2 1.8 1.5 N/A N/A N/A

NetSol Technologies, Inc. 7.76 81.7% 86.1% 80 88 60 9.0% N/A N/A 1.6 1.5 N/A 13.3 N/A N/A

NIC Inc. 19.68 94.2% 12.5% 1,291 1,169 316 7.9% 26.5% 7.9% 4.1 3.7 3.4 15.7 13.9 12.7

OPOWER, Inc. 10.56 68.0% (25.8% ) 547 478 175 18.4% (5.7% ) N/A 3.3 2.7 2.3 N/A N/A N/A

PROS Holdings, Inc. 23.04 82.6% (16.2% ) 684 642 164 (4.0%) (17.9%) N/A 3.6 3.9 3.3 N/A N/A N/A

RealPage, Inc. 22.45 93.6% 2.2% 1,760 1,785 524 12.4% 20.0% 16.1% 4.0 3.4 3.1 43.8 17.0 14.4

Redknee Solutions Inc. 2.14 56.8% (33.7% ) 234 236 244 11.2% 18.0% 43.5% 1.1 1.0 N/A 9.3 5.4 N/A

RPX Corporation 11.00 63.5% (20.2% ) 598 238 311 7.7% N/A N/A 0.8 0.8 0.7 1.1 N/A N/A

Silver Spring Networks, Inc. 14.41 89.1% 70.9% 725 604 320 13.9% 8.4% 164.4% 1.6 1.9 1.7 21.1 22.5 18.8

Synchronoss Technologies, Inc. 35.23 67.2% (15.8% ) 1,555 1,588 679 17.6% 34.6% 17.7% 2.9 2.3 2.0 10.1 6.7 5.5

Tangoe, Inc. 8.39 56.2% (35.6% ) 331 299 235 6.7% 9.6% 16.8% 1.4 1.3 1.2 31.0 13.2 8.9

Textura Corporation 21.58 69.1% (24.2% ) 563 490 114 31.3% 18.3% 118.5% 6.1 4.3 3.4 N/A 23.6 14.3

Xura, Inc. 24.58 92.3% 30.9% 615 631 373 38.4% 23.9% N/A 1.4 1.7 1.6 13.8 7.1 5.2

Mean 7.2% $1,762 $1,688 $523 18.0% 13.5% 40.7% 3.4 x 2.7 x 2.5 x 16.6 x 14.2 x 11.9 x

Median 4.2% 615 631 311 15.6% 20.4% 18.6% 2.7 2.2 2.3 13.6 11.9 10.8


Appendix


Infrastructure Software – Operating Statistics & Valuation Multiples

Application & Data

Network & Systems

_____________________

Source: Capital IQ.


12/31/2015

% of



Adobe Systems Incorporated $93.94 97.4% 29.2% $46,857 $44,776 $5,742 19.8% 36.9% 23.3% 9.3 x 7.8 x 6.4 x 36.0 x 21.2 x 16.6 x

Apigee Corporation 8.03 39.2% N/A 237 159 104 32.5% (28.4%) N/A 2.2 1.5 1.2 N/A N/A N/A

Atlassian Corporation Plc 30.08 95.6% N/A 6,277 6,056 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Hortonworks, Inc. 21.90 73.4% (18.9% ) 1,012 899 188 55.6% (41.5%) N/A 9.1 4.8 3.3 N/A N/A N/A

Interactive Intelligence Group Inc. 31.42 62.4% (34.4% ) 682 652 441 13.4% 4.3% (10.2%) 1.7 1.5 1.3 N/A 34.4 23.2

Magic Software Enterprises Ltd. 5.53 78.1% (4.6%) 245 177 189 8.7% N/A N/A 1.0 0.9 N/A 6.0 N/A N/A

Micro Focus International plc 23.52 98.3% 44.4% 5,118 6,507 1,225 1.3% 44.8% 12.3% 5.3 5.3 5.3 14.1 11.8 11.4

MobileIron, Inc. 3.61 27.9% (63.8% ) 290 192 170 16.6% (19.9%) N/A 1.3 1.1 1.0 N/A N/A N/A

Nuance Communications, Inc. 19.89 91.1% 39.4% 6,181 7,768 2,019 3.2% 34.6% 11.5% 4.0 3.8 3.7 31.5 11.1 10.4

Pegasystems Inc. 27.50 91.0% 33.1% 2,102 1,878 752 12.2% 17.3% 16.7% 2.9 2.5 2.2 23.1 14.4 11.8

Progress Software Corporation 24.00 78.5% (11.2% ) 1,205 1,131 429 5.5% 32.3% 0.6% 3.1 2.6 2.5 15.5 8.2 7.5

Red Hat, Inc. 82.81 98.1% 19.8% 15,138 14,731 2,270 15.2% 26.7% 16.2% 7.5 6.5 5.7 40.5 24.3 20.5

SDL plc 6.15 88.3% (4.4%) 500 488 423 4.8% 11.0% 21.4% 1.2 1.2 1.1 14.8 10.5 9.0


Software Aktiengesellschaft 28.69 94.2% 19.6% 2,247 2,249 960 2.4% 28.7% (1.3%) 2.3 2.3 2.3 8.2 8.2 7.7

Wix.com Ltd. 22.75 79.5% 8.3% 903 803 269 33.0% 12.6% 152.0% 4.3 3.0 2.3 N/A 23.7 11.7

Mean 6.0% $6,422 $6,373 $1,103 17.4% 12.7% 27.7% 4.7 x 3.7 x 3.3 x 21.1 x 16.8 x 15.0 x

Median 14.0% 1,653 1,504 441 13.4% 17.7% 16.2% 3.1 2.6 2.4 15.5 13.1 11.7



12/31/2015

% of



A10 Networks, Inc. $6.56 79.0% 50.5% $415 $315 $225 14.3% (0.6% ) N/A 1.7 x 1.4 x 1.2 x N/A N/A 9.2 x

Aerohive Networks, Inc. 5.11 61.2% 6.5% 246 178 188 24.3% (4.2% ) N/A 1.3 0.9 0.8 N/A N/A 21.8

Akamai Technologies, Inc. 52.63 67.1% (16.4% ) 9,365 9,316 2,418 10.5% 40.3% 10.0% 4.3 3.9 3.4 13.4 x 9.6 x 8.3

Arista Networks, Inc. 77.84 87.9% 28.1% 5,274 4,748 1,059 27.2% 27.2% 20.1% 6.2 4.5 3.8 31.4 16.5 14.9

Attunity, Ltd. 11.05 68.0% 2.8% 180 169 66 29.3% 16.3% 20.6% 3.6 2.5 2.1 N/A 15.6 12.3

CA, Inc. 28.56 85.5% (2.9%) 11,901 11,239 4,079 1.8% 40.3% 8.2% 2.7 2.8 2.7 8.7 6.8 N/A

Citrix Systems, Inc. 75.65 89.9% 18.6% 11,637 11,881 3,313 2.0% 30.8% 2.4% 3.7 3.6 3.4 14.9 11.6 10.6

F5 Networks, Inc. 96.96 71.7% (25.7% ) 6,824 6,050 2,097 7.9% 40.0% 9.1% 3.2 2.9 2.6 10.2 7.2 6.5

Gigamon Inc. 26.57 76.4% 49.9% 904 718 258 18.4% 23.2% 26.0% 3.5 2.8 2.4 N/A 12.0 11.1

Infoblox Inc. 18.39 65.6% (9.0%) 1,101 750 394 11.6% 13.1% 9.5% 2.3 1.9 1.6 N/A 14.6 10.2

j2 Global, Inc. 82.32 97.8% 35.1% 3,994 4,236 828 15.3% 46.0% 16.8% 6.2 5.1 4.6 15.0 11.1 9.8

LogMeIn, Inc. 67.10 89.0% 36.0% 1,682 1,436 322 19.4% 24.1% 14.6% 5.6 4.5 3.9 47.8 18.5 14.7

NetScout Systems, Inc. 30.70 67.4% (16.0% ) 3,043 2,975 1,328 68.5% 27.7% 42.5% 4.9 2.2 2.1 27.4 8.1 N/A

New Relic, Inc. 36.43 90.8% 4.6% 1,774 1,585 217 35.7% (12.1%) N/A 11.0 7.3 5.7 N/A N/A N/A

RingCentral, Inc. 23.58 91.9% 58.0% 1,673 1,561 365 24.4% 5.5% 227.9% 5.7 4.3 3.5 N/A N/A 39.7

Splunk, Inc. 58.81 76.5% (0.2%) 7,628 6,679 856 31.3% 6.7% 50.8% 11.2 7.8 6.0 N/A N/A N/A

Support.com, Inc. 1.01 47.6% (52.1% ) 55 N/A 60 (21.7%) N/A N/A N/A N/A N/A N/A N/A N/A

Varonis Systems, Inc. 18.80 48.9% (42.7% ) 484 379 153 22.0% (6.1% ) N/A 3.2 2.5 2.1 N/A N/A N/A

VMware, Inc. 56.57 60.5% (31.4% ) 23,817 18,100 7,243 9.3% 32.6% 0.3% 2.8 2.5 2.3 10.7 7.7 7.1

Mean 4.9% $4,842 $4,573 $1,341 18.5% 19.5% 32.8% 4.6 x 3.5 x 3.0 x 19.9 x 11.6 x 13.6 x

Median 2.8% 1,774 2,280 394 18.4% 23.7% 15.7% 3.7 2.8 2.7 14.9 11.4 10.6


Appendix


Storage

Security Software – Operating Statistics & Valuation Multiples

Content Providers

Network Security & IAM

_____________________

Source: Capital IQ.


12/31/2015

% of



Carbonite, Inc. $9.80 63.5% (4.3%) $267 $204 $148 8.2% 20.2% 13.7% 1.5 x 1.4 x 1.2 x N/A 6.8 x N/A

CommVault Systems, Inc. 39.35 75.1% (21.9% ) 1,783 1,383 616 6.3% 14.7% 34.4% 2.4 2.2 2.1 N/A 15.3 10.9 x

Falconstor Software Inc. 1.88 63.7% 63.5% 77 69 N/A N/A N/A N/A 1.4 N/A N/A N/A N/A N/A

NetApp, Inc. 26.34 63.0% (37.2% ) 7,756 4,431 5,742 (0.5%) 20.9% 15.3% 0.8 0.8 0.8 6.7 x 3.7 3.6

Nimble Storage, Inc. 9.20 28.6% (64.6% ) 716 507 397 23.8% (4.7% ) N/A 1.7 1.3 1.0 N/A N/A 40.3

Pure Storage, Inc. 15.57 75.6% N/A 2,960 2,387 666 55.2% (16.4%) N/A 6.7 3.6 2.4 N/A N/A N/A

Violin Memory, Inc. 0.90 18.4% (81.5% ) 89 137 67 28.1% (103.4%) N/A 2.3 2.0 N/A N/A N/A N/A

Mean (24.3%) $1,950 $1,303 $1,273 20.2% (11.5%) 21.1% 2.4 x 1.9 x 1.5 x 6.7 x 8.6 x 18.3 x

Median (29.5%) 716 507 506 16.0% 5.0% 15.3% 1.7 1.7 1.2 6.7 6.8 10.9



12/31/2015

% of



AhnLab, Inc. $69.00 87.6% 110.1% $598 $527 N/A N/A N/A N/A 4.9 x N/A N/A 37.9 x N/A N/A

AVG Technologies N.V. 20.05 68.8% 1.6% 1,049 1,170 $446 4.4% 35.6% 3.2% 2.8 2.6 x 2.5 x 9.6 7.4 x 6.9 x

CYREN Ltd. 1.70 47.6% (1.2%) 66 52 34 22.2% N/A N/A 1.8 1.5 1.1 N/A N/A N/A

CyberArk Software, Ltd. 45.14 59.1% 13.8% 1,429 1,179 203 32.2% 22.6% 17.8% 8.1 5.8 5.0 35.7 25.8 20.9

F-Secure Oyj 2.80 67.2% 9.1% 437 349 169 5.8% 19.0% 3.5% 2.0 2.1 2.0 11.9 10.9 8.9

Proofpoint, Inc. 65.01 86.2% 34.8% 2,626 2,550 343 29.9% 3.2% 173.7% 10.3 7.4 5.8 N/A N/A N/A

Symantec Corporation 21.00 76.9% (15.9%) 14,186 12,569 3,639 (32.9%) 36.0% (25.1% ) 2.0 3.5 3.4 7.2 9.6 8.9

Trend Micro Inc. 41.01 90.5% 50.6% 5,599 4,561 1,200 16.6% 33.0% 14.6% 4.4 3.8 3.7 13.1 11.5 10.1

Zix Corporation 5.08 87.9% 41.1% 282 258 61 12.1% 28.9% 23.1% 4.8 4.2 3.6 24.9 14.5 N/A

Mean 27.1% $2,919 $2,580 $762 11.3% 25.5% 30.1% 4.6 x 3.9 x 3.4 x 20.0 x 13.3 x 11.1 x

Median 13.8% 1,049 1,170 273 14.4% 28.9% 14.6% 4.4 3.6 3.5 13.1 11.2 8.9



12/31/2015

% of



Absolute Software Corporation $5.37 69.8% (20.8% ) $206 $149 $92 (0.7%) 16.9% (1.4%) 1.6 x 1.6 x 1.5 x 8.1 x 9.5 x 7.9 x

Barracuda Networks, Inc. 18.68 39.9% (47.9% ) 997 784 359 16.2% 26.3% 29.0% 2.6 2.2 1.9 N/A 8.3 N/A

BIO-key International, Inc. 0.16 32.0% (27.2% ) 11 11 N/A N/A N/A N/A 2.5 N/A N/A N/A N/A N/A

Checkpoint Systems Inc. 6.27 44.3% (52.1% ) 264 264 607 3.6% 11.0% 17.4% 0.4 0.4 0.4 4.7 3.9 3.3

CYREN Ltd. 1.70 47.6% (1.2%) 66 52 34 22.2% N/A N/A 1.8 1.5 1.1 N/A N/A N/A

FireEye, Inc. 20.74 37.5% (34.3% ) 3,330 2,858 820 31.2% (18.1%) N/A 4.9 3.5 2.8 N/A N/A N/A

Fortinet Inc. 31.17 62.0% 1.7% 5,369 4,461 1,249 23.7% 16.9% 28.1% 4.8 3.6 3.0 N/A 21.1 16.1

Gemalto NV 60.03 64.8% (26.6% ) 5,284 5,823 3,630 7.4% 18.6% 15.2% 1.8 1.6 1.5 11.3 8.6 7.5

Guidance Software, Inc. 6.02 58.9% (17.0% ) 184 166 111 5.3% 1.4% N/A 1.5 1.5 1.4 N/A N/A 46.1

Imperva Inc. 63.31 81.2% 28.1% 1,990 1,736 290 26.3% 6.2% 138.6% 8.2 6.0 4.8 N/A N/A 46.1

Imprivata, Inc. 11.30 52.2% (13.1% ) 283 231 142 20.0% (4.6% ) N/A 2.0 1.6 1.4 N/A N/A 33.1

Intrusion Inc. 1.09 38.0% (61.3% ) 14 16 N/A N/A N/A N/A 2.3 N/A N/A N/A N/A N/A

LifeLock, Inc. 14.35 76.3% (22.5% ) 1,371 1,038 677 15.7% 13.8% 30.4% 1.9 1.5 1.4 25.2 11.1 8.9

Mimecast Limited 9.60 89.1% N/A 518 554 158 N/A 5.7% N/A 4.3 3.5 2.9 29.9 N/A 37.9

NQ Mobile Inc. 3.64 55.6% (6.9%) 325 381 224 (42.5%) N/A N/A 1.0 1.7 N/A N/A N/A N/A

Palo Alto Networks, Inc. 176.14 87.8% 43.7% 15,132 14,863 1,533 35.3% 24.9% 83.3% 14.4 9.7 7.6 N/A 39.0 27.1

Qihoo 360 Technology Co. Ltd. 72.81 99.3% 27.2% 8,716 9,204 2,711 39.3% 28.3% 31.5% 5.6 3.4 2.9 20.9 12.0 9.3

Qualys, Inc. 33.09 59.7% (12.3% ) 1,132 957 202 22.8% 32.7% 21.8% 6.1 4.7 3.9 27.5 14.5 11.4

Rapid7, Inc. 15.13 57.8% N/A 629 505 138 28.5% (26.2%) N/A 5.1 3.7 3.0 N/A N/A N/A

VASCO Data Security International Inc. 16.73 47.8% (40.7% ) 662 478 231 (3.6%) 21.4% (16.8%) 1.9 2.1 1.8 8.6 9.6 7.1

VeriSign, Inc. 87.36 93.0% 53.3% 9,741 9,712 1,133 7.2% 68.2% 8.5% 9.3 8.6 8.2 14.9 12.6 11.9

Mean (12.1%) $2,677 $2,583 $755 14.3% 14.3% 32.1% 4.0 x 3.3 x 2.9 x 16.8 x 13.7 x 19.6 x

Median (17.0%) 662 554 290 18.1% 16.9% 24.9% 2.5 2.2 2.3 14.9 11.1 11.6


Appendix


SaaS – Operating Statistics & Valuation Multiples

_____________________

Source: Capital IQ.


12/31/2015

% of



2U, Inc. $27.98 70.5% 42.3% $1,275 $1,100 $196 31.5% (1.3% ) N/A 8.0 x 5.6 x 4.3 x N/A N/A N/A

Amber Road, Inc. 5.09 47.6% (50.2% ) 134 135 76 11.1% (9.0% ) N/A 2.0 1.8 1.5 N/A N/A N/A

AppFolio, Inc. 14.60 73.2% N/A 490 450 107 42.5% (4.0% ) N/A 6.6 4.2 3.0 N/A N/A N/A

athenahealth, Inc. 160.97 94.5% 10.5% 6,250 6,432 1,108 19.8% 20.8% 28.1% 7.3 5.8 4.8 N/A 27.9 x 22.5 x

Atlassian Corporation Plc 30.08 95.6% N/A 6,277 6,056 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Bazaarvoice, Inc. 4.38 46.6% (45.5% ) 353 300 210 6.6% 3.1% N/A 1.5 1.4 1.3 N/A 46.5 25.8

Benefitfocus, Inc. 36.39 76.6% 10.8% 1,061 1,027 229 25.4% (10.6% ) N/A 6.0 4.5 3.7 N/A N/A N/A

Box, Inc. 13.96 56.4% N/A 1,653 1,486 392 30.9% (17.7% ) N/A 5.3 3.8 3.0 N/A N/A N/A

Callidus Software Inc. 18.57 85.8% 13.7% 1,042 947 212 22.5% 11.6% 35.5% 5.8 4.5 3.8 N/A 38.5 28.9

Carbonite, Inc. 9.80 63.5% (31.3% ) 267 204 148 8.2% 20.2% 13.7% 1.5 1.4 1.2 N/A 6.8 N/A

Castlight Health, Inc. 4.27 35.6% (63.5% ) 404 257 101 34.5% (46.3% ) N/A 3.8 2.5 1.9 N/A N/A N/A

ChannelAdvisor Corporation 13.85 62.4% (35.8% ) 348 291 113 15.6% 0.4% N/A 3.1 2.6 2.3 N/A N/A N/A

Connecture, Inc. 3.61 25.1% (59.9% ) 79 121 116 19.4% 15.1% 78.8% 1.3 1.0 0.9 25.1 x 6.9 4.3

Cornerstone OnDemand, Inc. 34.53 84.8% (1.9% ) 1,880 1,897 439 28.3% 8.5% 656.9% 5.9 4.3 3.5 N/A N/A N/A

Covisint Corporation 2.50 75.1% (5.7% ) 99 57 90 12.7% 1.8% N/A 0.7 0.6 0.6 N/A 35.9 N/A

Cvent, Inc. 34.91 93.7% 25.4% 1,465 1,306 231 23.6% 10.8% 4.3% 7.4 5.6 4.6 N/A N/A 38.2

Demandware, Inc. 53.97 71.1% (6.2% ) 2,034 1,851 302 28.7% 7.9% 33.2% 8.6 6.1 4.8 N/A N/A N/A

Ebix Inc. 32.79 85.6% 94.9% 1,107 1,260 275 4.8% 37.8% 6.9% 4.9 4.6 N/A 14.0 12.1 N/A

Ellie Mae, Inc. 60.23 72.6% 49.4% 1,796 1,691 306 22.3% 27.2% 26.8% 7.2 5.5 4.4 34.7 20.3 14.7

FireEye, Inc. 20.74 37.5% (34.3% ) 3,330 2,858 820 31.2% (18.1% ) N/A 4.9 3.5 2.8 N/A N/A N/A

Five9, Inc. 8.70 96.0% 94.2% 439 427 148 17.1% (1.3% ) N/A 3.5 2.9 2.4 N/A N/A N/A

Fleetmatics Group PLC 50.79 80.8% 43.1% 1,960 1,797 344 20.8% 33.3% 24.6% 6.6 5.2 4.4 26.6 15.7 12.7

Halogen Software Inc. 5.15 64.1% (29.8% ) 113 75 74 12.8% (6.1% ) N/A 1.2 1.0 0.9 N/A N/A N/A

HubSpot, Inc. 56.31 93.7% 67.5% 1,920 1,816 240 33.7% (8.8% ) N/A 11.1 7.6 5.8 N/A N/A N/A

inContact, Inc. 9.54 80.0% 8.5% 588 562 258 17.8% 7.3% 54.8% 2.7 2.2 1.8 N/A 30.0 23.4

Inovalon Holdings, Inc. 17.00 50.4% N/A 2,565 2,136 537 21.7% 35.7% 24.8% 5.3 4.0 3.4 15.6 11.1 9.3

Instructure, Inc. 20.82 88.1% N/A 549 610 105 44.8% (50.0% ) N/A 9.4 5.8 4.1 N/A N/A N/A

IntraLinks Holdings, Inc. 9.07 70.9% (23.8% ) 529 550 294 6.6% 15.1% 12.4% 2.0 1.9 1.7 N/A 12.4 N/A

j2 Global, Inc. 82.32 97.8% 35.1% 3,994 4,236 828 15.3% 46.0% 16.8% 6.2 5.1 4.6 15.0 11.1 9.8

Jive Software, Inc. 4.08 64.5% (32.3% ) 310 203 208 6.3% 4.7% 62.0% 1.0 1.0 0.9 N/A 20.6 11.7

Kinaxis Inc. 33.82 95.7% 111.7% 823 736 109 22.1% 26.4% 1.7% 8.6 6.7 5.4 33.0 25.5 17.9

LifeLock, Inc. 14.35 76.3% (22.5% ) 1,371 1,038 677 15.7% 13.8% 30.4% 1.9 1.5 1.4 25.2 11.1 8.9

LinkedIn Corporation 225.08 81.5% (2.0% ) 29,505 27,557 3,900 30.6% 26.6% 38.1% 9.9 7.1 5.6 N/A 26.6 19.4

LogMeIn, Inc. 67.10 89.0% 36.0% 1,682 1,436 322 19.4% 24.1% 14.6% 5.6 4.5 3.9 47.8 18.5 14.7

Marin Software Incorporated 3.58 41.5% (57.7% ) 133 103 113 5.7% 0.1% N/A 1.0 0.9 0.8 N/A N/A 14.7

Marketo, Inc. 28.71 80.6% (12.3% ) 1,243 1,137 277 32.1% (5.3% ) N/A 5.9 4.1 3.2 N/A N/A N/A

Medidata Solutions, Inc. 49.29 80.4% 3.2% 2,729 2,692 474 18.9% 24.6% 27.5% 7.0 5.7 4.8 N/A 23.1 18.4

MINDBODY, Inc. 15.13 82.3% N/A 593 509 133 32.5% (13.3% ) N/A 5.5 3.8 3.0 N/A N/A N/A

MiX Telematics Limited 0.18 70.0% (29.2% ) 144 87 100 7.9% 20.7% 12.4% 0.8 0.9 0.8 4.8 4.2 3.5

Model N, Inc. 11.16 87.9% 5.1% 298 207 112 17.4% (10.2% ) N/A 2.2 1.8 1.5 N/A N/A N/A

NetSuite Inc. 84.62 77.0% (22.5% ) 6,726 6,636 961 29.9% 7.9% 43.7% 9.6 6.9 5.4 N/A N/A N/A

New Relic, Inc. 36.43 90.8% 4.6% 1,774 1,585 217 35.7% (12.1% ) N/A 11.0 7.3 5.7 N/A N/A N/A

OPOWER, Inc. 10.56 68.0% (25.8% ) 547 478 175 18.4% (5.7% ) N/A 3.3 2.7 2.3 N/A N/A N/A

Paycom Software, Inc. 37.63 81.2% 42.9% 2,224 2,202 289 31.1% 21.2% 28.6% 10.8 7.6 5.7 N/A 35.9 23.9

Paylocity Holding Corporation 40.55 86.5% 55.3% 2,061 1,983 242 33.4% 8.3% 54.3% 11.9 8.2 6.4 N/A N/A N/A

Proofpoint, Inc. 65.01 86.2% 34.8% 2,626 2,550 343 29.9% 3.2% 173.7% 10.3 7.4 5.8 N/A N/A N/A

Q2 Holdings, Inc. 26.37 86.6% 40.0% 1,021 901 143 31.8% (2.6% ) N/A 9.0 6.3 4.9 N/A N/A N/A

Qualys, Inc. 33.09 59.7% (12.3% ) 1,132 957 202 22.8% 32.7% 21.8% 6.1 4.7 3.9 27.5 14.5 11.4

RealPage, Inc. 22.45 93.6% 2.2% 1,760 1,785 524 12.4% 20.0% 16.1% 4.0 3.4 3.1 43.8 17.0 14.4

Red Hat, Inc. 82.81 98.1% 19.8% 15,138 14,731 2,270 15.2% 26.7% 16.2% 7.5 6.5 5.7 40.5 24.3 20.5

RingCentral, Inc. 23.58 91.9% 58.0% 1,673 1,561 365 24.4% 5.5% 227.9% 5.7 4.3 3.5 N/A N/A 39.7

salesforce.com, inc. 78.40 94.6% 32.2% 52,058 52,763 8,079 21.5% 20.1% 35.9% 8.4 6.5 5.4 N/A 32.6 25.8

SciQuest, Inc. 12.97 71.0% (10.2% ) 361 225 112 6.5% 20.3% 14.9% 2.2 2.0 1.8 31.8 9.9 8.4


Shopify Inc. 25.80 61.2% N/A 1,971 1,784 280 43.1% 4.5% N/A 10.5 6.4 4.7 N/A N/A N/A

ServiceSource International, Inc. 4.61 75.0% (1.5% ) 398 313 260 3.9% (1.8% ) N/A 1.2 1.2 1.1 N/A N/A N/A

SPS Commerce, Inc. 70.21 89.7% 24.0% 1,167 1,044 189 19.5% 14.5% 25.0% 6.9 5.5 4.6 N/A 38.2 29.9

Synchronoss Technologies, Inc. 35.23 67.2% (15.8% ) 1,555 1,588 679 17.6% 34.6% 17.7% 2.9 2.3 2.0 10.1 6.7 5.5

Tangoe, Inc. 8.39 56.2% (35.6% ) 331 299 235 6.7% 9.6% 16.8% 1.4 1.3 1.2 31.0 13.2 8.9

Textura Corporation 21.58 69.1% (24.2% ) 563 490 114 31.3% 18.3% 118.5% 6.1 4.3 3.4 N/A 23.6 14.3

The Ultimate Software Group, Inc. 195.51 90.4% 33.2% 5,602 5,482 759 23.0% 25.0% 26.8% 9.4 7.2 5.9 N/A 28.9 24.5

TubeMogul, Inc. 13.60 57.9% (39.7% ) 477 394 217 24.2% 1.3% N/A 2.5 1.8 1.5 N/A N/A 21.8

Upland Software, Inc. 7.05 68.0% (26.3% ) 110 107 73 4.5% 8.4% 68.1% 1.6 1.5 1.3 N/A 17.4 12.9


Workday, Inc. 79.68 83.7% (2.4% ) 15,458 14,070 1,547 33.6% 7.5% 52.6% 13.2 9.1 6.9 N/A N/A N/A

Workiva Inc. 17.57 93.5% 31.1% 717 658 178 24.0% (16.2% ) N/A 4.9 3.7 3.0 N/A N/A N/A

Xero Limited. 13.57 74.7% 7.6% 1,839 1,685 202 57.4% (17.0% ) N/A N/A 8.3 5.8 N/A N/A N/A

Xactly Corporation 8.53 79.9% N/A 249 213 93 23.6% (10.9% ) N/A 3.0 2.3 1.9 N/A N/A N/A

Zendesk, Inc. 26.44 93.8% 8.5% 2,345 2,065 289 40.1% 0.5% N/A 11.2 7.1 5.3 N/A N/A N/A

Zix Corporation 5.08 87.9% 41.1% 282 258 61 12.1% 28.9% 23.1% 4.8 4.2 3.6 24.9 14.5 N/A

Mean 5.9% $3,180 $3,049 $517 22.6% 7.9% 55.6% 5.8 x 4.3 x 3.5 x 27.2 x 20.7 x 18.1 x

Median 3.9% 1,205 1,072 235 22.3% 7.9% 27.5% 5.7 4.3 3.5 27.0 19.4 16.3


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[email protected]

Justin T. Albert


[email protected]

Christopher R. Cooper


[email protected]

Adam W. Czaia Managing Director

+1.414.298.7358

[email protected]

Stephen B. Guy

Managing Director


Jason P. Kliewer

Managing Director


Thomas E. Lange


[email protected]

Michael Lindemann Managing Director

+1.414.298.7408

[email protected] Trisha K. Renner

Managing Director


Jon Fitzsimmons

Director +1.414.298.2460

[email protected]

Yong-Jae Kim Director

+1.312.609.4939

[email protected]

David Steinkeler

Director


Consumer

Brian P. McDonagh

Managing Director

Head of Consumer Investment Banking

+1.704.553.6611

[email protected]

Andrew Martin Managing Director

+1.704.553.6615

[email protected]

Nicholas Pavlidis Managing Director

+1.312.609.4977

[email protected]

Joe Pellegrini Managing Director

+1.704.553.6612

[email protected]

Robert Rosenfeld Managing Director

+1.312.609.4971

[email protected]

Christopher J. Sciortino

Managing Director


Mark Karns

Director +1.312.609.7045

[email protected]

Katie J. Melzer

Director


Matt Tingler

Director +1.312.609.4470

[email protected]

Maria Watts Director

+1.312.609.4743

[email protected]

Real Estate

Steven Goldberg

Managing Director


James O’Brien


[email protected]

Jeff Rogatz Managing Director

+1.703.918.7823

[email protected] Adam Lefkowitz

Director


Tom O’Hare

Director +1.202.303.1811

[email protected]

Financial Services

Mark C. Micklem


[email protected]

Healthcare

Brian S. Doyal

Managing Director

Head of Healthcare Investment Banking

+1.312.609.4916

[email protected]

Rob Andrews

Managing Director

+1.312.609.5489

[email protected]

Benjamin A. Brown


[email protected]

Ryan Mausehund

Managing Director


Chase J. Sanders


[email protected]

David S. Schechner Managing Director

+1.617.426.5424

[email protected] Bill Suddath

Managing Director


Manish Gupta

Director +1.414.765.3802

[email protected]

James Weck Director

+1.312.609.4675

[email protected]

Energy

Richard F. Waid

Vice Chairman


Curtis Goot


[email protected]

John R. Lanza Managing Director

+1.414.298.7669

[email protected]

Kjell Lundal

Managing Director


Frank Murphy


[email protected]

Nick Alfermann

Director

+1.314.445.6531

[email protected]

Debt Advisory

Howard P. Lanser

Managing Director

Head of Debt Advisory +1.312.609.5478

[email protected]

Paul Bail


[email protected]

Financial Sponsors

C. Christopher Coetzee

Managing Director


Leslie Cheek IV

Managing Director


Vinay Ghai


[email protected]

Thomas W. Lacy


[email protected]

John Moriarty Managing Director

+1.650.424.3811

[email protected]

Jeffrey M. Seaman

Managing Director

+1.312.609.4687

[email protected]

David M. Wierman


[email protected]

Mergers & Acquisitions

Christopher C. McMahon Managing Director

Head of Global M&A

+1.312.609.4983

[email protected]

Brian P. McDonagh

Managing Director

Co-Head of Global M&A +1.704.553.6611

[email protected]

Owen L. Hart Managing Director

+1.415.627.3273

[email protected]

Howard P. Lanser Managing Director

+1.312.609.5478

[email protected] Satoshi Matsumoto

Managing Director

Director of Japan M&A +1.646.557.3201

[email protected] J. David Cumberland, CFA

Director, M&A Research +1.312.609.5429

[email protected]

Equity Capital Markets

Peter S. Kies Managing Director

+1.414.765.7262

[email protected] Lance R. Lange Managing Director

+1.414.765.7079

[email protected] Gary R. Placek

Managing Director


Ryan Engelhardt

Director +1.414.298.2637

[email protected]

Justin Holsen Director

+1.414.298.7768

[email protected]

Europe

London†

David M. Silver Managing Director

Head of European

Investment Banking


John A. Fordham

Chairman of Baird International

+44.207.667.8438

[email protected] Paul Bail

Managing Director

+44.207.667.8271

[email protected]

Julien Darmon


[email protected]

Vincenzo di Nicola Managing Director

+44.207.667.8532

[email protected]

Vinay Ghai

Managing Director


Jonathan Harrison


[email protected]

Terry Huffine

Managing Director

+44.207.667.8430

[email protected]

Nicholas R. Sealy


[email protected]

Alex Ballantine

Director +44.207.667.8242

[email protected]

Martin Luen Director

+44.207.667.8381

[email protected]

David Schreiter

Director


Frankfurt

Thomas Fetzer

Managing Director

Head of DACH Inv. Banking +49.691.301.4920

[email protected]

Joachim Beickler Managing Director

+49.69.13.01.49.51

[email protected] Sven Harmsen

Managing Director

+49.69.13.01.49.56 [email protected]

Michael Wolff

Managing Director

+49.69.13.01.49.49 [email protected]

Asia

Shanghai

Anthony Siu Managing Director

Head of Asia Inv. Banking


† Robert W. Baird Limited is authorized and regulated by the Financial Conduct Authority.



Appendix – Disclaimers and Other Disclosures


DISCLAIMERS

This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy.

ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST

The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available.

Baird is exempt from the requirement to hold an Australian financial services license. Baird is regulated by the United States Securities and Exchange Commission, FINRA, and various other self-regulatory organizations and those laws and regulations may differ from Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers and not Australian laws.

Copyright 2016 Robert W. Baird & Co. Incorporated. No part of this publication may be reproduced or

distributed in any form or by any means without our prior written approval. However, you may download one copy of the information for your personal, non-commercial viewing only, provided that you do not remove or alter any trade mark, copyright or other proprietary notice.

OTHER DISCLOSURES

UK disclosure requirements for the purpose of distributing this report into the UK and other countries for

which Robert W Baird Limited holds an ISD passport.

This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed to private clients. Issued in the United Kingdom by Robert W Baird Limited, which has offices at Finsbury Circus House 15 Finsbury Circus, London, EC2M 7EB, and is a company authorized and regulated by the Financial Conduct Authority.

Robert W Baird Limited ("RWBL") is exempt from the requirement to hold an Australian financial services license.

RWBL is regulated by the Financial Conduct Authority ("FCA") under UK laws and those laws may differ from Australian laws. This document has been prepared in accordance with FCA requirements and not Australian laws.

Robert W. Baird & Co. www.rwbaird.com

800.RW.BAIRD

Equity Capital Markets and Private Equity Office Locations

Atlanta

One Buckhead Plaza

3060 Peachtree Road

Suite 1815

Atlanta, GA 30305

Boston

One Post Office Square Suite 3617

Boston, MA 02109

Boulder

One Boulder Plaza

1301 Canyon Boulevard – Suite 220

Boulder, CO 80302

Charlotte

6000 Fairview Road

Suite 1100

Charlotte, NC 28210

Chicago

227 West Monroe Street

Suite 2100 Chicago, IL 60606

Denver

210 University Boulevard

Suite 700

Denver, CO 80206

Frankfurt* Neue Mainzer Strasse 28

60311 Frankfurt

Germany

London*

Finsbury Circus House

15 Finsbury Circus

London EC2M 7EB

UK

Milwaukee

777 East Wisconsin Avenue Milwaukee, WI 53202

Nashville

2525 West End Avenue

Suite 1000

Nashville, TN 37203

New York City 3 Rockefeller Plaza

610 Fifth Avenue

New York, NY 10020

Palo Alto

1661 Page Mill Road

Suite A

Palo Alto, CA 94304

San Francisco

50 California Street

Suite 450

San Francisco, CA 94111

555 California Street

Suite 4900

San Francisco, CA 94104

Shanghai*

Rm 42-022, 42/F, Hang Seng Bank

Tower

No.1000 Lujiazui Ring Road

Pudong Shanghai 200120, China

St. Louis

8000 Maryland Avenue Suite 500

St. Louis, MO 63105

Stamford

100 First Stamford Place

3rd Floor

Stamford, CT 06902

Tampa

3000 Bayport Drive

Suite 760

Tampa, FL 33607

Washington, D.C.

1717 K Street NW

Suite 910 Washington, DC 20006

*Baird and its operating affiliates have offices in the United States, Europe and Asia.

Robert W. Baird & Co. Incorporated. Member SIPC.

Robert W. Baird Ltd. and Baird Capital Partners Europe are authorized and regulated in the UK by the Financial Conduct Authority. ©2016 Robert W. Baird & Co. Incorporated.

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