Tech-Enabled Services Headline Transactions

Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA

LTM Gross & EBITDA Margins

11.5x 10.3x

5.9x

10.4x

16.0x 14.4x

8.9x

0.0

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

ITS Offshore ITS ManagedServices

IT Staffing TransactionProcessing

Info Services VAR

28.6% 30.9%

53.3%

22.2%

43.0%

59.6%

13.1% 10.0% 14.6%

34.2%

3.4%

26.7% 26.6%

3.9% 0%

10%

20%

30%

40%

50%

60%

70%

0%

10%

20%

30%

40%

50%

60%

70%

ITS Offshore ITS ManagedServices

IT Staffing TransactionProcessing

Info Services VAR

Note: EBITDA Margins in red

Target Acquirer Acquisition Synopsis

Transaction Processing

•

•

Montreal-based Novacap (together with la Caisse) invested in Texas-based Pivotal Payments, a provider of payment processing solutions and merchant services, valuing the Company at approximately $430 millionPivotal Payments intends to use the funding to acquire new payment and fintech solutions and expand into new markets outside of its existing footprint in the US and Canada

IT Staffing

•

•

Massachusetts-based Eliassen Group (backed by Riverside Partners) acquired Atlanta-based Principle Solutions Group, an IT staffing firmThe acquisition extends Eliassen's geographic reach to 18 offices nationwide and broadens its service offering and team of experienced consultants

IT Services

•

•

PCM's (NSDQ:PCMI) UK-based subsidiary, PCM Technology Solutions UK, acquired UK-based The Stack Group, a provider of IT consulting and managed services The acquisition enhances California-based PCM's presence in Europe, strengthens its vendor accreditations and accelerates its managed services offering

Managed Services

•

•

California-based Equinix (NSDQ:EQIX) acquired Madrid-based Itconic (backed by The Carlyle Group), a provider of data center, connectivity and cloud infrastructure solutions, for approximately $259 millionThe acquisition extends Equinix's presence in Europe with five additional data centers and adds more than 250 employees with expertise in hybrid cloud architectures and cloud adoption / migration strategies

Managed Services

•

•

Texas-based Rackspace (backed by a consortium of investors), announced its agreement to acquire New Jersey-based Datapipe (majority owned by Abry Partners), a provider of managed services across public and private cloudsThe acquisition extends Rackspace's footprint with 29 additional data centers across nine countries, adds 825 employees and extends its ability to help enterprise clients manage multiple clouds at scale

1. Headline Transactions

1.2x

1.6x

2.0x

0.3x

3.1x 3.1x

0.3x

0.0

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

ITS Offshore ITS ManagedServices

IT Staffing TransactionProcessing

Info Services VAR

2.5%

7.7% 5.9%

(4.8%)

17.8%

7.4% 11.8%

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

ITS Offshore ITS ManagedServices

IT Staffing TransactionProcessing

Info Services VAR

Tech-Enabled Services MonthlyOctober 2017

LTM Revenue Growth

Selected TM Capital Tech-Enabled Services Experience TM Capital’s Tech-Enabled Services Contacts

Bradford A. Adams Managing Director

617-259-2203 badams@tmcapital.com

Jarrad S. Zalkin Managing Director

617-259-2207 jzalkin@tmcapital.com

Annc. Date Sector Acquirer Target Target DescriptionEnterprise

Value Comments9/29/2017 IT Services ServiceNow

(NYSE:NOW)Telepathy San Diego-based Telepathy provides creative

design services, spanning the spectrum frominitial research and strategy formation todevelopment and creation; the Companyspecializes in user experience and userinterfaces

NA The acquisition is California-based ServiceNow'sfourth in 2017; Telepathy will be integrated into itsexisting design experience and product developmentteams with the goal of supporting the creation ofbusiness apps that deliver intuitive experiences

9/27/2017 Managed Services

365 Data Centers BroadbandONE (d/b/a Host.net)

Florida-based BroadbandONE (backed byNovacap) provides managed infrastructureservices through data centers in Boca Ratonand Fort Lauderdale

NA BroadbandONE is the first follow-on acquisition forCalifornia-based 365 Data Centers since beingacquired by Chirisa Investments, Lumerity Capital andLongboat Advisors in April 2017; in addition to itsexisting Tampa facility, the acquisition will scale 365'sfootprint across Florida

9/13/2017 IT Services 10Pearls ProQual-I.T. Maryland-based ProQual-I.T. providescybersecurity and IT services, specializing inbiometrics and identity management

NA Virginia-based 10Pearls provides diverse digitaldevelopment services, spanning web development,cognitive design and enterprise solutions; theacquisition enhances the growing Company's security-focused offering -- an area of particular interest for10Pearls given recent high profile data breaches (e.g.,Equifax)

9/7/2017 IT Services Genpact (NYSE:G) TandemSeven Boston-based TandemSeven provides design-centric consulting services to deliver customerand digital experience innovation

NA The acquisition is Genpact's fifth in 2017;TandemSeven's team of consultants, technologistsand designers will bolster Genpact's existing end-to-end customer journey design services

9/5/2017 IT Services Hewlett Packard Enterprise Company (NYSE:HPE)

Cloud Technology Partners ("CTP")

Boston-based Cloud Technology Partners(which has raised almost $34 million infunding) provides consulting services to helpclients migrate to the cloud

NA The acquisition is HPE's fifth in 2017; CTP will becomepart of PointNext, HPE's IT deployment services arm,and will bolster the Company's hybrid IT servicescapabilities

9/5/2017 Managed Services

Ntiva IN Communications

Virginia-based IN Communications operatesas a telecom provider and offers customizedVOIP, data and network solutions for SMBs

NA Virginia-based Ntiva (backed by Southfield CapitalPartners) provides managed IT and cloud services; theacquisition diversifies Ntiva's offering into outsourcedtelephony services

3. TES Transactions

Select Tech-Enabled Services Transactions Announced in September 2017

www.tmcapital.com /technology

New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360

Boston201 Washington Street32nd FloorBoston, MA 02145Tel: 617.259.2200

Atlanta1230 Peachtree Street NESuite 550Atlanta, GA 30309 Tel: 404.995.6230

TEV / EBITDA Multiples Over Time

16.0x

14.4x

11.5x

5.9x

10.3x

8.9x

10.4x

3.0x5.0x7.0x9.0x

11.0x13.0x15.0x17.0x19.0x

Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017

TEV

/ EBI

TDA

Transaction Processing Info Services ITS IT Staffing Offshore ITS VAR Managed Services

Notes: USD in millions Source: Capital IQ, Company SEC Filings, industry research and TM Capital estimates