tech m&a monthly: 2017 midyear report
TRANSCRIPT
2
Timothy joined Corum in 2011, and oversees the company’s marketing efforts globally from the headquarters near
Seattle. Chief among these is Corum's extensive conference schedule, “Selling Up, Selling Out,” the Merge Briefing,
the Tech M&A Monthly webcast and Corum's platinum sponsorship of the World Financial Symposiums' live events
and Market Spotlight series. Through these events, Corum Group serves as the world’s leading educator in
technology mergers and acquisitions.
Prior to joining Corum, Timothy served as marketing and product manager for GIS software startup Depiction, Inc.,
and previously worked in marketing for VizX Labs, a pioneering SaaS startup delivering DNA analysis tools. In
addition to marketing for software startups, Tim has worked for a US Senate campaign and taught science in Rio de
Janeiro.
Timothy graduated Magna Cum Laude from Bethel University in St. Paul, Minnesota, with degrees in History and
Biology.
Welcome
Timothy Goddard
SVP, Marketing
Corum Group Ltd.
3
Agenda
Welcome
Field Report
Endeavor Commerce acquired by Vendavo
2017 Midyear Research Report
Top 10 Disruptive Tech Trends update
Q&A
4
Field Report: Endeavor Commerce acquired by Vendavo
Allan Wilson
Senior Vice President
Corum Group Ltd.
Allan has over 30 years of executive and entrepreneurial experience and has built and sold several software
companies in sectors including, manufacturing, supply chain, big data, predictive analytics and social networks.
He has deep understanding of Aerospace, Automotive, High Tech, Healthcare, Consumer Products and Military
Contracting operating models.
Allan has extensive international experience and lived in Germany for a time working for SAP, following the sale
of his company to them in 2009.
5
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Yasmin Khodamoradi
Director, Valuation ServicesAmanda Tallman
Senior Analyst
6
Public Markets
Dec. Jan. Feb. Mar. Apr. May Jun.
26%
8%
14%
0%
5%
10%
15%
20%
25%
30%
35%Weekly Percentage Change
S&P TECH Dow Jones NASDAQ
7
The Long Bull Market, 2009-PresentLast 6 months
2009 2011 2013 2015 2017
0%
50%
100%
150%
200%
250%
300%
350%
400%
450% Daily Percentage Change
NASDAQ S&P TECH Dow Jones
2009 2011 2013 2015 2017
8
*Since the Great Depression. Source: S&P Capital IQ, The Associated Press
Macro view: 4 Longest Bull Market Runs
Start End Years
Dotcom Bubble Oct. 11, 1990 Mar. 24, 2000 9.5
Current Mar. 9, 2009 ? 8.3
Postwar Boom Jun. 13, 1949 Aug. 2, 1956 7.1
That 70s Inflation Oct. 3, 1974 Nov. 28, 1980 6.2
9
1. Disruptive trends – Strategic imperative to buy
2. Cash – Strategic & financial buyers
3. Low cost debt for leveraged buyouts
4. Many new buyers (IPOs, non-tech)
5. Strong financial markets
5 Reasons Tech M&A Remains Strong
10
Corum Index
Market
Transactions
1H:20171H:2016
2069 1802
Mega Deals34 20
Largest Deal $26B $15.3B
PipelinePrivate Equity Deals
139 199
VC Backed Exits285322
Attributes34%
Cross Border
Transactions 39%
Start-Up
Acquisitions 11%12%
17 yrs15 yrsAverage Life
of Target
1H:2016 1H:2017
1H:2016 1H:2017
0%
43%
11%
13%
41%
41%
11
2017 Mega Deals – YTD
$1.1B
VERTICAL
$20B
$2.0B
$2.3B
$15.3B
HORIZONTAL
$2.7B
$1.4BEnterprise software
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$8.6B
$1.1B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$11B
$4.3B
$2.0B
$1.3B$2.4B
INTERNET
$11B
$1.9B
$3.4B
$2.4B
$1.3B
12
2017 Mega Deals – YTD
$1.1B
VERTICAL
$20B
$2.0B
$2.3B
$15.3B
HORIZONTAL
$2.7B
$1.4BEnterprise software
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$8.6B
$1.1B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$11B
$4.3B
$2.0B
$1.3B$2.4B
INTERNET
$11B
$1.9B
$3.4B
$2.4B
$1.3B
Sold to
Target: Syncsort [Clearlake Capital Group] [USA]
Acquirer: Centerbridge Partners [USA]
Transaction Value: $1.26B
- Data integration and management software
13
2017 Mega Deals – YTD
$1.1B
VERTICAL
$20B
$2.0B
$2.3B
$15.3B
HORIZONTAL
$2.7B
$1.4BEnterprise software
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$8.6B
$1.1B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$11B
$4.3B
$2.0B
$1.3B$2.4B
INTERNET
$11B
$1.9B
$3.4B
$2.4B
$1.3B
Sold to
Target: Nimble Storage [USA]
Acquirer: Hewlett Packard Enterprise [USA]
Transaction Value: $1.1B
- Predictive cloud infrastructure
14
2017 Mega Deals – YTD
$1.1B
VERTICAL
$20B
$2.0B
$2.3B
$15.3B
HORIZONTAL
$2.7B
$1.4BEnterprise software
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$8.6B
$1.1B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$11B
$4.3B
$2.0B
$1.3B$2.4B
INTERNET
$11B
$1.9B
$3.4B
$2.4B
$1.3B
Sold to
Target: CEB [USA]
Acquirer: Gartner [USA]
Transaction Value: $2.6B (3.5x EV/S and 18.5x EBITDA)
- Business management and IT Consulting Services
15
2017 Mega Deals – YTD
$1.1B
VERTICAL
$20B
$2.0B
$2.3B
$15.3B
HORIZONTAL
$2.7B
$1.4BEnterprise software
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$8.6B
$1.1B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$11B
$4.3B
$2.0B
$1.3B$2.4B
INTERNET
$11B
$1.9B
$3.4B
$2.4B
$1.3B
Sold to
Target: Chewy.com [USA]
Acquirer: PetSmart [USA]
Transaction Value: $3.4B (reported)
- Online pet products marketplace
16
2017 Mega Deals – YTD
$1.1B
VERTICAL
$20B
$2.0B
$2.3B
$15.3B
HORIZONTAL
$2.7B
$1.4BEnterprise software
$3.7B
$1.6B
$1.1B
$1.1B
INFRASTRUCTURE
$8.6B
$1.1B
HR BPO assets
$2.6B
$2.8B
IT SERVICES
$11B
$4.3B
$2.0B
$1.3B$2.4B
INTERNET
$11B
$1.9B
$3.4B
$2.4B
$1.3B
Sold to
Target: Mobileye [Israel]
Acquirer: Intel [USA]
Transaction Value: $15.3B (41.0x EV/Sales and 117.6x EBITDA)
- EyeQ system-on-chip, semiconductors and related systems for
automakers
17
3-Year Market Valuation Trends
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
EV/Sales
5.00
7.00
9.00
11.00
13.00
15.00
17.00
19.00
21.00
EV/EBITDA
19
17
11
9 9
7 76 6
5 5 5 5
Top Strategic Acquirers – 1H:2017
Target: Trimble Navigation [USA]
Acquirer: Network Mapping Group [United Kingdom]
- 3D visualization and mapping software for the utility industry
Sold to
20
17
11
9 9
7 76 6
5 5 5 5
Top Strategic Acquirers – 1H:2017
Target: MSC Software Corporation [Symphony Technology Group] [USA]
Acquirer: Hexagon [Sweden]
Transaction Value: $834M (3.6x EV/Sales)
- Motion control, dynamics and acoustical vibration simulation software
Sold to
Target: VIRES Simulationstechnologie [Germany]
Acquirer: MSC Software Corporation [Hexagon] [Sweden]
- 3D simulation and virtual test drive software
Sold to
21
North America
Sellers 1073
Buyers 1145
Europe
Sellers 509
Buyers 475
Latin America
Sellers 15
Buyers 9
Asia
Sellers 155
Buyers 146
Source: 451 Research
Mideast/Africa
Sellers 28
Buyers 17
22
North American Deals
West
Sellers 368
Buyers 369
Canada
Sellers 85
Buyers 71
Northeast
Sellers 264
Buyers 329
Southeast
Sellers 230
Buyers 226
Source: 451 Research
Midwest
Sellers 126
Buyers 150
New York South KoreaDetroit United Kingdom
Vancouver Palo Alto
Toronto Atlanta
Seattle China
23
European Deals
Nordics
Sellers 73
Buyers 79
Western Europe
Sellers 411
Buyers 388
Eastern Europe
Sellers 25
Buyers 9
Source: 451 Research
Czech Republic United States
Italy France
Germany United States
Sweden USA
24
Asian Deals
China
Sellers 30
Buyers 37
Far East
Sellers 20
Buyers 27
SE/Oceania
Sellers 59
Buyers 47
India
Sellers 46
Buyers 35
Source: 451 Research
Japan United States
India China
China United States
India United States
Australia Japan
25
Latin American Deals
Latin
America
Sellers 16
Buyers 9
Source: 451 Research
Peru United States
Brazil India
26
North America
Sellers 1073
Buyers 1145
Europe
Sellers 509
Buyers 475
Latin America
Sellers 15
Buyers 9
Mideast/Africa
Sellers 28
Buyers 17
Asia
Sellers 155
Buyers 146
Source: 451 Research
Israel Israel
UAE United States
27
Horizontal Application Software MarketPublic Valuation Multiples
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x
EV/S 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x
28
Subsector Sales EBITDA Examples
Business
Intelligence3.86x 21.47x
Marketing &
Ad Tech1.92x 16.62x
CRM 2.73x 43.83x
ERP 5.29x 20.73x
Human
Resources 6.40x 33.33x
SCM 5.41x 19.03x
Payments 4.19x 17.37x
Other 3.66x 17.04x
Horizontal Application Software Valuations
29
Horizontal Application Software MarketDeal Spotlights: Marketing Analytics
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x
EV/S 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x
Sold to
Target: Infomart [Postmedia Network] [Canada]
Acquirer: Meltwater Group [USA]
Transaction Value: $30M
- Analytics and reporting SaaS for news and social media monitoring
Target: Turnstyle Analytics [Canada]
Acquirer: Yelp [USA]
- Customer analytics and marketing automation SaaS via public WiFi
Sold to
30
Horizontal Application Software MarketDeal Spotlights: Cross-Device Programmatic Advertising
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x
EV/S 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x
Sold to
Target: Adelphic [USA]
Acquirer: Viant Technology [dba Viant] [Time] [USA]
Transaction Value: $25M (2x EV/S)
- Mobile and cross-device programmatic trading SaaS for advertisers and Web
publishers
Target: AdTheorent [USA]
Acquirer: H.I.G. Capital [USA]
- Mobile and cross-device trading and analytics SaaS for advertisers and Web
publishers
Sold to
31
Horizontal Application Software MarketDeal Spotlights: HR
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x
EV/S 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x
Sold to
Target: Compass HRM [USA]
Acquirer: Asure Software [USA]
Transaction Value: $6M
- HR management SaaS for workforce management, payroll management, digital document management
Sold to
Target: iSystems [MBO] [USA]
Acquirer: Asure Software [USA]
Transaction Value: $55M
- Payroll, workforce and business tax management software and data hosting services
Sold to
Sold to
Target: ExcelPay Business Solutions [USA]
Acquirer: iSolved HCM [USA]
- Web-based HR management software for payroll management, applicant training and workforce management
Target: Vertex Solutions Group [USA]
Acquirer: TCC Software Solutions [USA]
- Employee training and workforce management software and consulting services
32
Horizontal Application Software MarketDeal Spotlights: AI-Enabled BI
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x
EV/S 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x
Sold to
Target: Qlue [USA]
Acquirer: ServiceNow [USA]
- Customer service automation SaaS for direct customer-employee interaction
through mobile messaging interfaces
Target: DxContinuum [USA]
Acquirer: ServiceNow [USA]
Transaction Value: $15M
- Predictive analytics SaaS for management and performance of sales
Sold to
33
Horizontal Application Software MarketDeal Spotlight: Social Media Monitoring
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x
EV/S 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x
Sold to
Target: Digital Roots [USA]
Acquirer: Interactions [USA]
- Social media monitoring, analytics and customer engagement SaaS
- Adds to Interactions’ portfolio of Omnichannel Intelligent Virtual Assistant
Solutions for Modernized Enterprise Customer Care
- Augments Interactions’ previous purchase of AT&T Watson AI
34
Vertical Application Software MarketPublic Valuation Multiples
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
35
Subsector Sales EBITDA Examples
A/E/C 6.08x 23.29x
Automotive 6.06x 20.85x
Energy &
Environment4.50x 19.33x
Financial
Services5.34x 16.77x
Government 2.03x 13.11x
Healthcare 4.55x 20.84x
Real Estate 8.44x 34.22x
Vertical Other 4.02x 15.07x
Vertical Application Software Valuations
36
Vertical Application Software Market
Deal Spotlights: Fleet Management
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
EV/EBITDA 9.66 x 10.05 x 10.06 x 9.55 x 9.53 x 9.12 x 9.74 x 10.29 x 10.76 x 10.82 x 10.33 x 10.14 x 10.35 x
EV/S 0.98 x 0.95 x 0.93 x 0.91 x 0.92 x 0.89 x 0.85 x 1.00 x 1.03 x 0.97 x 0.90 x 0.98 x 1.06 x
Target AcquirerTarget
Country
Acquirer
CountryDescription
USA USATelematics and fleet management electronic driver log
software
Canada USA Fleet management SaaS and GPS vehicle tracking solutions
Norway Bahrain Fleet and equipment tracking software
USA France Fleet management and telematics systems
USA USA Fleet management and driver safety SaaS
USA USA Vehicle management SaaS and IoT-based GPS fleet tracking
New
ZealandCanada Fleet management and safety location-based SaaS
37
Vertical Application Software Market
Deal Spotlights: Fleet Management
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
EV/EBITDA 9.66 x 10.05 x 10.06 x 9.55 x 9.53 x 9.12 x 9.74 x 10.29 x 10.76 x 10.82 x 10.33 x 10.14 x 10.35 x
EV/S 0.98 x 0.95 x 0.93 x 0.91 x 0.92 x 0.89 x 0.85 x 1.00 x 1.03 x 0.97 x 0.90 x 0.98 x 1.06 x
Target AcquirerTarget
Country
Acquirer
CountryDescription
USA USATelematics and fleet management electronic driver log
software
Canada USA Fleet management SaaS and GPS vehicle tracking solutions
Norway Bahrain Fleet and equipment tracking software
USA France Fleet management and telematics systems
USA USA Fleet management and driver safety SaaS
USA USA Vehicle management SaaS and IoT-based GPS fleet tracking
New
ZealandCanada Fleet management and safety location-based SaaS
Sold to
Target: Innovative Software Engineering [USA]
Acquirer: Trimble [USA]
- Telematics and fleet management electronic driver log software
- Refills Trimble's portfolio of Fleet Safety and Compliance Solutions
Target: Shaw Tracking [Canada]
Acquirer: Omnitracs [USA]
- Fleet management SaaS and GPS vehicle tracking solutions
- Expands Omnitracs’ presence in Canada
Sold to
38
Vertical Application Software Market
Deal Spotlights: Fleet Management
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
EV/EBITDA 9.66 x 10.05 x 10.06 x 9.55 x 9.53 x 9.12 x 9.74 x 10.29 x 10.76 x 10.82 x 10.33 x 10.14 x 10.35 x
EV/S 0.98 x 0.95 x 0.93 x 0.91 x 0.92 x 0.89 x 0.85 x 1.00 x 1.03 x 0.97 x 0.90 x 0.98 x 1.06 x
Target AcquirerTarget
Country
Acquirer
CountryDescription
USA USATelematics and fleet management electronic driver log
software
Canada USA Fleet management SaaS and GPS vehicle tracking solutions
Norway Bahrain Fleet and equipment tracking software
USA France Fleet management and telematics systems
USA USA Fleet management and driver safety SaaS
USA USA Vehicle management SaaS and IoT-based GPS fleet tracking
New
ZealandCanada Fleet management and safety location-based SaaS
Sold to
Target: ABAX [Norway]
Acquirer: Investcorp [Bahrain]
Transaction Value: $210M
- Fleet and equipment tracking software
Target: NexTraq [USA]
Acquirer: Michelin [France]
- Fleet management and telematics systems
Sold to
39
Vertical Application Software MarketDeal Spotlight: Connected Car
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
Sold to
Target: Automatic Labs [USA]
Acquirer: Sirius XM Radio [dba SiriusXM] [USA]
Transaction Value: $115M
- Mobile driver assist devices and applications
- The deal solidifies SiriusXM’s position in the connected car infotainment space
Sold to
Target: Teramatrix Technologies [India]
Acquirer: Globetouch [USA]
- M2M IoT data collection and aggregation software
- Complements Globetouch’s IoT, Connected Car and Autonomous Driving systems
40
Vertical Application Software MarketDeal Spotlight: Asset Management
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
Sold to
Target: Sage Technology [Australia]
Acquirer: Prometheus Group Enterprises [Francisco Partners] [USA]
- Plant management SaaS to businesses in the manufacturing industry
Target: Pipeline Group [USA]
Acquirer: Prometheus Group Enterprises [Francisco Partners] [USA]
- Asset management SaaS for businesses in the manufacturing industry
- Builds upon Prometheus’s strategy to deliver a unified scheduling solution
Sold to
41
Vertical Application Software MarketDeal Spotlights: Education
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
Sold to
Sold to
Sold to
Target: AcademicWorks [USA]
Acquirer: Blackbaud [USA]
Transaction Value: $50M
- Scholarship management SaaS for K-12 schools, universities and nonprofits
Target: Questar Assessment [USA]
Acquirer: Educational Testing Service [dba ETS] [USA]
Transaction Value: $127.5M
- K-12 education assessment management software
Target: DATA180 [USA]
Acquirer: Interfolio [USA]
- Faculty reporting and evaluation management, program assessment and student tracking SaaS
42
Consumer Application Software MarketPublic Valuation Multiples
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x 15.82 x 17.52 x 18.23 x 20.43 x 20.02 x 15.85 x
EV/S 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x 2.27 x 2.18 x 2.44 x 2.62 x 2.83 x 3.22 x
43
Subsector Sales EBITDA Examples
Casual Gaming 3.70x 21.46x
Core Gaming 3.25x 13.90x
Other 1.27x N/A
Consumer Application Software Valuations
44
Consumer Application Software MarketDeal Spotlights: Video Games
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
Sold to
Sold to
Sold toHunan Tianrun Digital
Entertainment & Cultural Media
Target: Shenzhen Muzhi Game Technology [dba Muzhi] [China]
Acquirer: Hunan Tianrun Digital Entertainment & Cultural Media [China]
Transaction Value: $249M
- Mobile video games developer
Target: Shanghai Woshi Culture Communication [China]
Acquirer: Hakim Unique Internet [China]
Transaction Value: $86.9M
- Developer and publisher of mobile video games
Target: IsCool Entertainment [France]
Acquirer: Hachette Livre [Lagardere] [France]
Transaction Value: $8.6M
- Social games for Web and mobile
45
Consumer Application Software MarketDeal Spotlights: Facebook-Based Casino Games
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x 15.82 x 17.52 x 18.23 x 20.43 x 20.02 x 15.85 x
EV/S 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x 2.27 x 2.18 x 2.44 x 2.62 x 2.83 x 3.22 x
Sold to
Target: Double Down Interactive [International Game Technology] [USA]
Acquirer: DoubleU Games [South Korea]
Transaction Value: $825M
- Online casino simulation videogame for Facebook
Target: Luck Genome [Israel]
Acquirer: GamePoint [Netherlands]
Transaction Value: $12.5M
- Free casino games accessible on mobile and tablet devices as well as Facebook
Sold to
46
Consumer Application Software MarketDeal Spotlights: Spotify
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
Sold to
Sold to
Sold to
Target: MightyTV [USA]
Acquirer: Spotify [Sweden]
- Mobile application for digital entertainment content recommendations
Target: Sonalytic [USA]
Acquirer: Spotify [Sweden]
- Copyright monitoring and music identification SaaS
Target: Niland [France]
Acquirer: Spotify [Sweden]
- Online music search and AI-enabled software recommendations for publishers
47
Infrastructure Software Market
Public Valuation Multiples
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x
EV/S 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x 3.32 x 3.54 x 3.53 x 3.54 x 3.60 x 3.62 x
48
Subsector Sales EBITDA Examples
Endpoint 3.53x 15.46x
IT Services
Management5.01x 13.25x
Network
Management2.49x 8.59x
Security 4.04x 22.84x
Storage
& Hosting2.77x 11.98x
Other 4.97x 11.94x
Infrastructure Software Market
49
Infrastructure Software Market
Deal Spotlights: Identity Access Management
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
EV/EBITDA 9.66 x 10.05 x 10.06 x 9.55 x 9.53 x 9.12 x 9.74 x 10.29 x 10.76 x 10.82 x 10.33 x 10.14 x 10.35 x
EV/S 0.98 x 0.95 x 0.93 x 0.91 x 0.92 x 0.89 x 0.85 x 1.00 x 1.03 x 0.97 x 0.90 x 0.98 x 1.06 x
Target AcquirerTarget
Country
Acquirer
CountryDescription
USA USA Identity theft monitoring technology
USA Canada Security & identity management SaaS
USA Israel Automated machine identity provisioning software
USA USA Application penetration and network vulnerability testing SaaS
USA Belgium Cloud-based identity & access management APIs and SDKs
USA Sweden Iris recognition biometric systems
United
Kingdom
United
KingdomAuthentication software & SaaS
50
Infrastructure Software Market
Deal Spotlights: Identity Access Management
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
EV/EBITDA 9.66 x 10.05 x 10.06 x 9.55 x 9.53 x 9.12 x 9.74 x 10.29 x 10.76 x 10.82 x 10.33 x 10.14 x 10.35 x
EV/S 0.98 x 0.95 x 0.93 x 0.91 x 0.92 x 0.89 x 0.85 x 1.00 x 1.03 x 0.97 x 0.90 x 0.98 x 1.06 x
Target AcquirerTarget
Country
Acquirer
CountryDescription
USA USA Identity theft monitoring technology
USA Canada Security & identity management SaaS
USA Israel Automated machine identity provisioning software
USA USA Application penetration and network vulnerability testing SaaS
USA Belgium Cloud-based identity & access management APIs and SDKs
USA Sweden Iris recognition biometric systems
United
Kingdom
United
KingdomAuthentication software & SaaS
Sold to
Sold to
Target: Delta ID [USA]
Acquirer: Fingerprint Cards [Sweden]
Transaction Value: $106M
- Iris recognition biometric systems for use in mobile devices and automobiles
Target: SecurEnvoy [United Kingdom]
Acquirer: Shearwater Group [United Kingdom]
Transaction Value: $25M (6.2x EV/Sales and 9.1x EV/EBITDA)
- Two-factor, tokenless, SMS and email authentication software and SaaS
Target: Conjur [USA]
Acquirer: CyberArk Software [Israel]
Transaction Value: $42M
- Automated machine identity provisioning software for DevOps providers
Sold to
51
Infrastructure Software Market
Deal Spotlights: Security
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x
EV/S 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x 3.32 x 3.54 x 3.53 x 3.54 x 3.60 x 3.62 x
Sold to
Target: Invincea [USA]
Acquirer: Sophos [United Kingdom]
Transaction Value: $100M
- Endpoint security software for healthcare, financial and government services
- Enhances Sophos’s synchronized security portfolio and real-time intelligence sharing
Target: Skyfence Networks [Imperva] [Israel]
Acquirer: Forcepoint [Raytheon] [USA]
Transaction Value: $40M
- Security software for public cloud applications
Sold to
52
Infrastructure Software Market
Deal Spotlights: Mobile Back-end
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x
EV/S 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x 3.32 x 3.54 x 3.53 x 3.54 x 3.60 x 3.62 x
Sold to
Sold to
Target: Apteligent [USA]
Acquirer: VMware [EMC] [Dell] [USA]
Transaction Value: $30M (3.8x EV/Sales)
- Mobile application intelligence solution providing both tools and app performance
insights
Target: Kinvey [USA]
Acquirer: Progress Software Corporation [USA]
Transaction Value: $30M
- Machine-learning predictive analytics SaaS for industrial IoT connected device
management
53
Infrastructure Software Market
Deal Spotlights: Virtualization
2.00 x
2.20 x
2.40 x
2.60 x
2.80 x
3.00 x
3.20 x
3.40 x
3.60 x
3.80 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x 15.66 x 15.50 x 16.65 x 16.56 x 14.53 x 14.97 x
EV/S 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x 3.32 x 3.54 x 3.53 x 3.54 x 3.60 x 3.62 x
Sold to
Target: Unidesk Corporation [USA]
Acquirer: Citrix Systems [USA]
Transaction Value: $65M (3.8x EV/Sales)
- Desktop virtualization and app lifecycle management software and SaaS
Target: Viptela [USA]
Acquirer: Cisco Systems [USA]
Transaction Value: $610M (24.4x EV/Sales)
- Cloud-based WAN virtualization software
Sold to
54
Public Valuation Multiples
Internet Application Software Market
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x 20.12 x 21.80 x 21.78 x 26.43 x 27.08 x 26.11 x
EV/S 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x 4.16 x 4.14 x 3.99 x 4.19 x 4.41 x 4.28 x
55
Subsector Sales EBITDA Examples
Diversified
Internet5.28x 20.03x
eCommerce 1.34x 53.82x
Social Network 4.33x 24.78x
Travel & Leisure 6.93x 25.04x
Internet Application Software Valuations
56
Internet Application Software MarketDeal Spotlight: Diversified Internet
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x 16.40 x 17.82 x 17.83 x 17.66 x 17.99 x 19.26 x
EV/S 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x 4.61 x 4.70 x 4.71 x 5.00 x 4.93 x 5.12 x
Sold to
Target: Angie's List [USA]
Acquirer: HomeAdvisor / IAC [USA]
Transaction Value: $505M (1.6x EV/Sales)
- Online consumer review service
- IAC had courted Angie’s List for over 2 years
- Combined company spins out as new public company ANGI Homeservices
57
Deal Spotlight: Coupon Services
Internet Application Software Market
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x 20.12 x 21.80 x 21.78 x 26.43 x 27.08 x 26.11 x
EV/S 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x 4.16 x 4.14 x 3.99 x 4.19 x 4.41 x 4.28 x
Target: RetailMeNot [USA]
Acquirer: Harland Clarke Holdings [USA]
Transaction Value: $630M (1.5x EV/Sales and 15.4x EBITDA)
- Searchable online directory of digital coupons and promotional codes for
consumers
Sold to
58
Deal Spotlight: Classifieds
Internet Application Software Market
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x 20.12 x 21.80 x 21.78 x 26.43 x 27.08 x 26.11 x
EV/S 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x 4.16 x 4.14 x 3.99 x 4.19 x 4.41 x 4.28 x
Target: CareerBuilder.com [TEGNA] [USA]
Acquirer: Led by Apollo Global Management [USA]
Transaction Value: $483M (0.9x EV/Sales)
- Employment classified ad website with related online reference content
Sold to
59
Internet Application Software Market
Deal Spotlights: Airbnb
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16
EV/EBITDA 9.66 x 10.05 x 10.06 x 9.55 x 9.53 x 9.12 x 9.74 x 10.29 x 10.76 x 10.82 x 10.33 x 10.14 x 10.35 x
EV/S 0.98 x 0.95 x 0.93 x 0.91 x 0.92 x 0.89 x 0.85 x 1.00 x 1.03 x 0.97 x 0.90 x 0.98 x 1.06 x
Target AcquirerTarget
Country
Acquirer
CountryDescription
Canada USA Short-term rentals classifieds website
USA USA Mobile & social payment applications
Germany USA Online vacation search & comparison service
USA USAMachine learning-based identity screening
SaaS
USA USA Mobile app development software
60
Deal Spotlights: Automotive Classifieds
Internet Application Software Market
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x 20.12 x 21.80 x 21.78 x 26.43 x 27.08 x 26.11 x
EV/S 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x 4.16 x 4.14 x 3.99 x 4.19 x 4.41 x 4.28 x
Sold to
Target: CarCo Technologies [USA]
Acquirer: KAR Auction Services [USA]
Transaction Value: $43M
- Online classifieds website that enables automotive dealers to acquire used cars
Target: Am.ru [Rambler&Co] [Russia]
Acquirer: Mail.Ru Group [Russia]
Transaction Value: $10M
- Online auto classifieds, news and blog website
Sold to
61
Deal Spotlights: Online Food Ordering
Internet Application Software Market
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x 20.12 x 21.80 x 21.78 x 26.43 x 27.08 x 26.11 x
EV/S 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x 4.16 x 4.14 x 3.99 x 4.19 x 4.41 x 4.28 x
Sold to
Sold to
Sold to
Target: ZakaZaka [Russia]
Acquirer: Mail.Ru Group [Russia]
Transaction Value: $18M (21.7x EV/Sales)
- Online food delivery service in Russia
Target: MobileNosh [USA]
Acquirer: Electronic Payments [USA]
- Mobile application that enables consumers to order food from restaurants and food trucks
Target: Nowait [USA]
Acquirer: Yelp [USA]
Transaction Value: $40M
- Wait list management mobile application for restaurants
62
IT Services – Developed Markets
Public Valuation Multiples
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 10.21 x 10.68 x 11.08 x 11.13 x 10.90 x 10.89 x 11.14 x 10.86 x 11.03 x 11.28 x 11.25 x 11.48 x 11.81 x
EV/S 1.16 x 1.14 x 1.26 x 1.32 x 1.27 x 1.21 x 1.30 x 1.37 x 1.25 x 1.36 x 1.45 x 1.42 x 1.41 x
63
Public Valuation Multiples
IT Services – Emerging Markets
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
EV/EBITDA 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x 13.38 x 14.25 x 14.45 x 17.04 x 17.75 x 18.55 x
EV/S 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x 2.70 x 2.95 x 3.04 x 3.14 x 3.26 x 3.27 x
64
Subsector Sales EBITDA Examples
Developed 1.41x 11.81x
Emerging 3.27x 18.55x
IT Services Valuations
66
IT Services Global Acquisitions 1H 2017
Target: solid serVision [Germany]
- Gold-rated ServiceNow SI & consultant; ~100 professionals
- Ranked among fastest-growing German IT companies
Sold to
Target: Focus Group Europe [United Kingdom]
- ServiceNow SI, consultant & VAR
- Won ServiceNow Top Influencer award; ~70 professionals
Sold to
67
IT Services Global Acquisitions 1H 2017
Target: SinnerSchrader [Germany]
Transaction Value: $67.4M (2x EV/sales)
- Digital marketing & Web design services
Sold to
68
IT Services Global Acquisitions 1H 2017
Target: Altitude [USA]
- Product design, consulting and engineering services
Sold to
Target: Media Hive [USA]
- Web and mobile e-commerce solutions
Sold to
69
IT Services Global Acquisitions 1H 2017
Target: LabAnswer [USA]
- Research lab informatics consultant to FDA, pharma, others
- LIMS, ELN, instruments, migration and outsourcing support
Target: Genfour [USA]
- Intelligent Automation services
- Cornerstone for new IA Center in UK
Sold to
Sold to
70
IT Services Global Acquisitions 1H 2017
Target: Endgame Systems Inc. (U.S. federal government
services business) [USA]
- Proactive cyber defense including threat hunting & red
teaming
- Apply machine learning & data science EDR platform
Sold toFederal business unit
72
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Yasmin Khodamoradi
Director, Valuation ServicesAmanda Tallman
Senior Analyst
73
Corum Top Ten Technology Trends 2017
AI Enablement IoTSoftware
Visual Intelligence
Systems
Digital Currency Flow
Data Science Monetization
Online Exchanges
Omni-channel Sales
Connected Health
Focused IT Services
DataSecurity
CO
RE
CO
NTO
UR
74
Allan Wilson
Senior Vice President
Corum Group Ltd.
Allan has over 30 years of executive and entrepreneurial experience and has built
and sold several software companies in sectors including, manufacturing, supply
chain, big data, predictive analytics and social networks. He has deep
understanding of Aerospace, Automotive, High Tech, Healthcare, Consumer
Products and Military Contracting operating models.
Allan has extensive international experience and lived in Germany for a time
working for SAP, following the sale of his company to them in 2009.
Putting AI to work by means of big data and feedback
#1: AI Enablement
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Putting AI to work by means of big data and feedback
#1: AI Enablement
Nascent AIs and other machine learning platforms need data.
Need tasks that provide data, benefit from improving expertise, then provide feedback to improve the platform.
Business cases emerging rapidly across all sectors.
Significant stores of unique data can short-circuit “build vs. buy” debates in M&A.
Corum Top Ten Disruptive Technology Trends 2017
76
Rob Schram
Senior Vice President
Corum Group Ltd.
Rob has over 30 years of executive and entrepreneurial experience in multiple
technologies: Integrated circuit testing, industrial process automation and control,
communications software, security software, and energy software and services.
Rob has founded and sold several companies and engaged in two IPOs. He was most
recently CEO of Evergreen Fuel Technologies, Inc. in the energy sector. Rob is a broadly
skilled strategic development professional with a proven reputation for targeting,
negotiating and developing profitable ventures and a demonstrated ability to successfully
analyze an organization's critical business requirements, identify deficiencies and
opportunities, and develop innovative and cost-effective solutions for enhancing
competitiveness, increasing revenues, and improving customer relationships.
Emerging platforms, standards & analytics
#2: IoT Software
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Emerging platforms, standards & analytics
#2: IoT Software
Internet of Things (IoT) growth brings us into its first full software cycle.
Each “Thing” needs platforms, communication, analytics, etc.
Competing platforms and associated ecosystems beginning to coalesce.
IoT software often, but not always, inextricably enmeshed with hardware.
Compatibility-driven, as in other cycles of disruption.
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Daniel Bernstein
Vice President
Corum Group Ltd.
Daniel Bernstein has worked in a number of roles over a twenty year career in high
technology, most recently as the founder and CEO of Sandlot Games Corporation, a
leading casual games publisher and developer. Having sold Sandlot Games to Digital
Chocolate in 2011, Daniel started a small games studio and a consulting practice where
he advises larger companies such as RealNetworks and smaller high growth businesses
on product development, strategic initiatives, and M&A opportunities.
Prior to Sandlot Games, Daniel Bernstein held director level positions in companies such
as Wild Tangent and Monolith. An accomplished composer, Daniel also writes music for
most of the games he works on.
Daniel holds a BS in Computer Science and an MA in Music Composition from the
University of Virginia.
Intersection of AI, computer vision & analytics
#3: Visual Intelligence Systems
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Intersection of AI, computer vision & analytics
#3: Visual Intelligence Systems
Corum Top Ten Disruptive Technology Trends 2017
Evolution of Positioning Intelligence beyond GPS required computer vision.
Drones and self-driving cars driving advanced vision tech with even larger implications.
Retail, security, energy, agriculture, advertising are all being impacted.
Companies creating practical solutions with this tech—especially utilizing analytics—are in high demand.
80
Rob Griggs
Vice President
Corum Group Ltd.
As a serial entrepreneur and investment banker, Rob Griggs has had a successful 35+
year career in the high technology arena. Early in his career he was a top performer at
Apple before starting his first software company in the mid-1980’s. As a founder of
Authorware / MacroMedia, NetRadio, Wit Capital, and many other companies, Rob’s
sales, marketing, business development and capital raising skills have been honed over
supporting hundreds of company financial transactions during his career.
His success and extensive experience in software M&A uniquely qualify him as an expert
in building value and realizing wealth. Rob joined Corum Group, the world’s leading
software M&A firm, with a specific focus on educating and helping prospective sellers
maximize the value of their technology companies.
Decreasing friction in payments & exchange
#4: Digital Currency Flow
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Decreasing friction in payments & exchange
#4: Digital Currency Flow
Currency flow moving towards fewer barriers, reduced regulation and less friction on transactions globally.
Banks face competition from nimbler mobile and web point solutions.
Includes alternative currencies—from blockchain/bitcoin to in-game currencies to Starbucks payments.
Software & systems that speed or harness payment flow have significant potential.
Corum Top Ten Disruptive Technology Trends 2017
82
Entertainment software entrepreneur Jim Perkins is directly responsible for publishing
some of the industry’s biggest franchises, including Unreal, Duke Nukem, Wolfenstein,
Doom, Hunting Unlimited, and Driver. A well-known senior executive with a 22-year
track record of publishing such bestselling hits, he founded and grew two highly
successful software publishing companies (FormGen and ARUSH) from start-ups to
multi-million dollar enterprises.
Jim also launched Radar Group, the first Transmedia Incubation Company to monetize
entertainment franchises across all media, including film and television. His success
and extensive experience in software production, marketing and public relations,
packaging, online and retail distribution and software M&A, uniquely qualify him as an
expert in building value and realizing wealth. Jim joined Corum Group, the world’s
leading software M&A firm, with a specific focus on educating and helping prospective
sellers maximize the value of their digital media companies.
Jim Perkins
Executive Vice President
Corum Group, Ltd.
Maximizing return with real-time analytics
#5: Data Science Monetization
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Maximizing return with real-time analytics
#5: Data Science Monetization
In a world of freemium, free-to-play & declining ad effectiveness, turning users or viewers into dollars is a premium capability.
Robust analytic tools are no longer optional, especially for consumer-facing companies.
Gaming companies are leading the way, deriving value from their analytic capabilities as much as entertainment.
Video ads are close behind with opportunities in e-commerce, brick & mortar, B2B and beyond.
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Ivan Ruzic, Ph.D.
Vice President
Corum Group Ltd.
Dr. Ivan Ruzic has had a successful 30+ year career in the software business that has
included virtually every senior executive role. His resume spans marquee companies
such as BEA systems, Novell and Borland as well as multiple startups including his
own. His international experience is extensive and in addition to the United States has
been involved in mergers and acquisitions in Europe, Africa and Asia.
His success and extensive experience qualify him as an expert in building value and
realizing wealth. Ivan joined Corum Group, the world’s leading software M&A firm, with
a specific focus on educating and helping prospective sellers maximize the value of
their technology companies.
Connecting Creators & Consumers
#6: Online Exchanges
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Connecting creators & consumers
#6: Online Exchanges
Uber & others recharging the concept that created online commerce, putting unused capacity to work.
Not just connecting buyers & sellers, but creating previously non-existent opportunities on both sides.
Disruptive opportunities include:
Personalization
Real-time commerce
Financial disintermediation
Corum Top Ten Disruptive Technology Trends 2017
86
Jeff Riley
Vice President
Corum Group Ltd.
Jeff has over 25 years of large and small company experience in the technology
industry, focusing on enterprise software and IT services across a broad variety of
vertical industries and geographies.
In 2004, Jeff became CEO of Dinerware, a small restaurant software startup based
in Seattle. Under his leadership Dinerware grew rapidly, receiving numerous
industry awards along the way. After being listed on the Inc 5000 list of fastest
growing private companies for four years in a row, he led the successful sale of the
company to Heartland Payment Systems which was later acquired by Global
Payments.
The first half of Jeff’s career was spent in product management and business
development for new products and capabilities within large technology companies
including Digital Equipment, RR Donnelley, and Microsoft. While at Microsoft, Jeff
launched Microsoft’s first secure commerce website in 1997, managed Microsoft
Business Solutions SMB sales and marketing, and served as integration lead for the
Great Plains acquisition before being promoted to GM of Retail Business Solutions
within Dynamics.
He graduated from Babson College with a B.S. in Business Administration majoring
in Management Information Systems.
Purchasing decisions anywhere, any platform
#7: Omni-Channel Sales
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Purchasing decisions anywhere, any platform
#7: Omni-Channel Sales
Consumer platforms & devices continually fragmenting.
Marketing keeping pace – next challenge is sales, both decision points and actual purchase.
Point at which money changes to product must be immediately with customer, moving closer by being on their favorite device.
Persuasion must move there as well, taking new forms as it does.
Consumer brands leading the way, but enterprise is not far off.
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David Levine
Vice President
Corum Group Ltd.
Dave joined Corum in 2015 and has a diverse background in technology and life
sciences. As an executive and entrepreneur, Dave has been operating and investing
in companies sitting at the convergence of commerce and eCommerce as well as
innovative life science businesses for over twenty-five years. Recently, Dave was
CEO North America for Gaxsys, an eCommerce and logistics company that is a
leader in last mile logistics and fulfillment for eCommerce marketplaces.
Dave has been on both sides of the mergers and acquisitions table having sold a life
science technology company, facilitated sell side and buy side technology transactions
and has also scaled multiple technology companies globally in the eCommerce, life
sciences and innovation intelligence markets. Dave sits on boards of public and
private companies including one company that recently filed for an IPO.
Dave holds a business degree from the Indiana University, Kelley School of Business.
Linking people to their health data & services
#8: Connected Health
Corum Top Ten Disruptive Technology Trends 2017
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Linking people to their health data & services
#8: Connected Health
Technological, regulatory and demographic changes converging to create significant opportunity.
Leveraging new tech: smartphones, trackers, connected medical devices, genomics, remote monitoring.
Improved self-care and remote care/diagnosis.
Makes healthcare more patient-centric by enabling healthcare consumerism.
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Steve joined Corum after 25 years of executive experience in various high-tech
industries with both public and private venture-backed startups. He has extensive
global experience, opening international markets and growing sales from zero to
tens of million in revenue. He has been on the forefront of selling several companies
and spinning off software divisions, highlighted by the sale of GetFon to Alestra
(AT&T Mexico). He is fluent in Spanish.
Steve was the founding CEO of Solera Networks, a real-time intrusion detection
security company. He also co-founded Auction Trust Network, an eCommerce
company for online exchanges; which he sold to MediaForge (Rakuten Marketing).
Steve is a board member of several software companies and has industry expertise
in several areas: enterprise apps and infrastructure, security, mobile and wireless,
media & entertainment, supply chain, and embedded devices/systems (IoT).Steve Jones
Vice President
Corum Group Ltd.
Differentiation drives new value in a sleepy sector
#9: Focused IT Services
Corum Top Ten Disruptive Technology Trends 2017
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Differentiation drives new value in a sleepy sector
#9: Focused IT Services
New and more pervasive technologies creating new needs for maintenance, extension and utilization.
Teams that provide customer value around a specific technology, sector or problem are seeing increased value.
Buyers seeing more value in purpose-built IP emerging out of services firms.
Services on the edge of key trends seeing particular interest.
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Jon joined Corum in 2010 out of their Seattle headquarters and is now based in
Amsterdam. He has close to 30 years experience serving high technology companies
with the last 20 mainly in chief operating and chief executive roles. During this time Jon
has become known for his ability to successfully integrate strategies and tactics into well
executed operating plans, building strong teams and achieving excellent results.
Jon has served as President and CEO of The PowerTech Group, a security and
compliance software company sold to Help/Systems in 2008, and Microserv Technology
Services, a nationwide tech services company which was acquired by Halifax Corporation
in 2003. Earlier he served as President and COO of Traveling Software, a leading
developer of communications software in Seattle. Prior to his operating roles Jon held
vice president roles in sales, marketing and business development for technology
companies.
Jon has taught in the software product management program at the University of
Washington and holds a business administration degree from San Francisco State
University.
Jon Scott
Managing Director
Corum Group
International
Building barriers in an age of blurred lines
#10: Data Security
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Building barriers in an age of blurred lines
#10: Data Security
New technologies creating new risks from freer flowing data.
High impact breaches (DNC, Yahoo, Dyn DNS, Oracle Micros) drive broad recognition of security needs.
Key trends include security analytics, rapid detection & in-process threat response.
Internet of Things opening a new front in this fight – the Dyn DDoS attach came from infected IoT devices.
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Upcoming Conference ScheduleSelling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position,
research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A
event ever – participants have done over $1 trillion in transaction value.
Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends,
valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.”
www.CorumGroup.com/Events
Aug. 1: Lehi – MB
Aug. 3: Omaha – MB
Sep. 27: London – MB
Sep. 28: Dublin – MB
Oct. 12: Helsinki – SUSO
Oct. 25: Munich– SUSO
Oct. 26: Berlin– SUSO
Stockholm Dallas
Victoria B.C. Austin
Seattle Houston
Additional events upcoming in…