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Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 7078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2017

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 1Q 2017

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 1Q 2017

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTSOVERVIEW

SOFTWARE PUBLIC COMPARABLESOVERVIEW

TECHNOLOGY IPO OVERVIEW

DEBT MARKET OVERVIEW

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM

SOFTWARE / SAAS

Enterprise Software

Data and Analytics

Infrastructure andSecurity Software

IT and Tech-EnabledServices

Data Center andManaged Services

INTERNET & DIGITAL MEDIA

AdTech and Marketing Solutions

Consumer Internet

Digital Media and Content

eCommerce

Mobile

HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

25+ year history with over 120closed transactions in the last 24months

Approximately 250 professionalsacross eight offices in the U.S. andEurope

Strategic relationships in India and China

10 industry groups

KEY FACTS

1

HW&Co. OfficeNetwork Office

Education Tech

Energy, Power, andInfrastructure

Fintech

Healthcare IT

Human Capital Management

Public Sector and Non-Profit

Supply Chain, Transportation,and Logistics

Manufacturing

Professional Services

has been acquired byhas been acquired by has been acquired byhas been acquired byhas been

recapitalized byhas acquired

has received a majority investment from

has been acquired byhas received a majority

investment from

has received a growth

investment from

has received a majorityInvestment from

has been acquired by

mailto:[email protected]




mailto:*[email protected]

http://www.leisurepassgroup.com/


PAGE |



CASE STUDY: VESON NAUTICAL

HW&CO. DEAL CONTACTS

Veson is a leading provider of commercial maritime software anddata solutions that enable the world’s leading shipping andtrading organizations to better manage voyage chartering,operations, financials, and risk.

Veson’s flagship integrated solutions (IMOS and Veslink) form theleading technology platform for buyers and sellers of marinefreight, and create a unique community of users through which tocollaborate and share mission critical voyage and vessel data.

With its first-ever outside capital infusion, Veson is ideallypositioned to execute on a series of compelling growth initiativeswithin the broader maritime logistics software and data market.

HW&Co.’s TMT Group advised Veson Nautical Corporation (“Veson”) on its growth investment fromPamlico Capital.

2

has received a growth investment from

DATE CLOSED:

1/31/2017

RELEVANT SECTORS:

SaaS

Supply Chain & Logistics

Data & Analytics

LEADING ADVISOR TO THE SUPPLY CHAIN AND LOGISTICS TECHNOLOGY SECTOR

Enterprise Software

Jeff BistrongManaging Director

[email protected]

Office: (617) 654-2102

Tyler DewingDirector

[email protected]

Office: (617) 654-2133

Jason BassManaging Director

[email protected]

Office: (804) 915-0132

Scott ReinigVice President

[email protected]

Office: (617) 654-2113

Andy LeedVice President

[email protected]

Office: (617) 654-2107

For more information about the Supply Chain and LogisticsTechnology sector and our experience, please contactHW&Co. at *[email protected].

To receive the latest Supply Chain and Logistics Technology sector overview, please click here.






mailto:*[email protected]

mailto:*[email protected]?subject=Supply Chain Sector Follow Up

PAGE | 3



SELECT SOFTWARE M&A TRANSACTIONS – 1Q 20171

Advent International’s pending acquisition of CCC Information Services

CCC Information Services provides SaaS-based insurance claims management and auto body estimating software tools thatenable insurance carriers and collision repair shops to efficiently manage the auto claims and repair process.

Over 350 insurance companies and 22,000 collision repair centers use CCC’s solutions to make better decisions on auto collisionclaims and repair management operations.

Post the acquisition, Advent will support CCC’s continued development of high performance products, particularly in the areasof machine learning, IoT, and mobile to deliver greater value to insurance carriers, repair facilities, and automotive customers.

Pending

Ent. Value: $3,000M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Madison Dearborn’s pending acquisition of BlueCat Networks

BlueCat Networks provides enterprise DNS software solutions that enable customers to build and manage complex and rapidlyevolving IT networks and infrastructure.

More than 1,000 corporate and public sector clients rely on BlueCat’s technology to connect their users and devices securely tointernet-based applications and services.

BlueCat has established itself as an integral partner to many of the world’s leading companies and, alongside MDP, will remainfocused on delivering solutions to manage increasingly complex network infrastructure needs.

Ent. Value: $300M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Pending

McKesson’s acquisition of CoverMyMeds

CoverMyMeds provides SaaS-based software that automates the medication prior authorization process, decreasingprescription abatement costs nationally and enabling customers to avoid administrative waste.

Doubling nearly every year since its software launched in 2010, CoverMyMeds serves over 47,000 pharmacies, 700,000prescribers, and the nation’s largest pharmacy benefit managers and payers.

Post acquisition, CoverMyMeds will operate as an independent business unit within McKesson, and the combined companieswill build on their prior long-term partnership to continue developing innovative solutions.

Ent. Value: $1,400M

Revenue: $48M

EV / Rev: 29.5x

EV / EBITDA: NA

April 3, 2017

Genstar Capital’s majority investment in Blue Star Sports

Blue Star is a leading provider of sports management software and payment processing solutions that is used by leagues,coaches, players/parents, and volunteers across the broader youth and amateur sports sector.

Having completed eight acquisitions since inception and now serving over 30 million users across 23 countries, Blue Starrepresents a unique platform of scale within the youth and amateur sports landscape.

Post investment, will provide capital and executive resources to further accelerate growth by building on Blue Star's leadingtechnology and identifying strategic acquisitions.

Ent. Value: $225M

Revenue: $50M

EV / Revenue: 4.5x

EV / EBITDA: 17.4x

April 7, 2017

HW&Co.

HW&Co.

HW&Co.

HW&Co.

Saba Software’s pending acquisition of Halogen Software

Halogen Software provides cloud-based talent management and employee performance software that enables organizationsto align recruitment, learning, succession, and compensation functions with improved performance and outcomes.

Serving over 2,100 customers worldwide, Halogen’s solutions help organizations optimize their talent and business strategies andhave been ranked highest in customer satisfaction against peers.

Halogen’s deep expertise in employee performance will enhance Saba’s position as a leading provider of end-to-end talentmanagement solutions, while the combined company’s increased scale will open new market opportunities.

Ent. Value: $165M

Revenue: $72M

EV / Revenue: 2.3x

EV / EBITDA: 24.8x

Pending

PAGE | 4



SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME1

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active strategicsoftware acquirers registered 19acquisitions in 1Q 2017. Activityamong large strategic acquirerscontinues to be strong and at asimilar pace to 2016.

Google was the most activestrategic consolidator in 1Q 2017,completing four acquisitions. Dataanalytics and machine learningremain strategic priorities asevidenced by the acquisitions ofKaggle and Fabric. Theseacquisitions will also bolster Google’sdata scientist talent resources.

Global strategic software M&A registered 348 acquisitions in 1Q2017, consistent with the prior threequarters.

Key software strategic acquirersremain flush with cash and viewM&A as an attractive avenue forgrowth and product advancement.Uncertainty regarding the new U.S.administration and its potentialpolices may put a damper onlarger transactions near term.

352 333 327 324371

340309

402454 437 434

406

341 359 350 348

2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17

5 59 9 8 9

59 9

28

106 4

94

1

83

1

12

1813

10 3

3

6

3

1

4

15

914

78

69

2

5

8

4

2 1

12

2 2

5

2017 YTD

2016

2015

2014

2013

(# of Transactions)

(# of Transactions)

Note: Includes control investments only.

PAGE | 5



SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME1

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME1

While the 10 most active softwareinvestors completed only seven newplatform investments, portfoliocompany M&A activity was high asevidenced by the 25 add-onacquisitions in 1Q 2017 among thisgroup.

Vista Equity, Thoma Bravo, andProvidence Equity were the mostactive software acquirers in 1Q2017, consummating 17 acquisitionsincluding add-ons.

Vista Equity’s pending $3.6 billiontake-private of DH Corp representsthe largest private-equitytechnology transaction in thequarter.

Globally, private equity registered73 new software platformacquisitions in 1Q 2017,representing a slight decrease from4Q 2016, though remaining abovehistorical averages.

The software sector is rapidlyevolving as all industries areexperiencing disruptive digitaltechnology transformations. Tocapitalize on this trend, dealmakers– whether tech private equityincumbents or non-traditionalsoftware investors – are deployingan unprecedented amount ofcapital in the software sector.

73 4

1 25

3 2 13

9

5 35

64

3 44

3

6

5 7

3

5 37 7

62

12

7 4

8

55 4

11

4

2

11 2

1

2017 YTD

2016

2015

2014

2013

3847 45 43

32

48 47 4454 56

47 50

61

7481

73

2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17

(# of Platform Transactions)

(# of Platform Transactions)

Note: Includes control new platform investments only. Excludes add-on acquisitions.

PAGE | 6



Application Software

Pending Fingerprint Cards AB Delta ID, Inc. Identity recognition and authentification scanning software for mobile devices. $120 NA

Pending Vista Equity Partners DH Corp. Lending and payments software solutions for banks. $3,447 2.7x

Pending EQT Partners AB Innovyze, Inc. Design and performance monitoring software solutions for wet infrastructure. $270 NA

Pending Hexagon AB MSC Software Corp. Computer-aided engineering simulation software. $834 NA

04/04/17 TeleTech Healthcare Solutions, Inc. Connextions, Inc. Member acquisition, retention, and engagement solutions for healthcare plan providers. $80 NA

03/30/17 Siemens AG Mentor Graphics Corp. Electronic design software for the semiconductor, automotive, and transportation industries. $4,133 3.6x

03/20/17 Daxko LLC Zen Planner LLC Business and membership management software for the health and fitness community. NA NA

02/28/17 H.I.G. Capital Lionbridge Technologies, Inc. Localization, translation, and global marketing software solutions for brands. $430 0.8x

02/13/17 E2open LLC Steelwedge Software, Inc. Integrated business planning software for sales, finance, operations, and executive teams. NA NA

02/09/17 TPG Capital Mediware Information Systems, Inc. Enterprise software solutions for healthcare and human serv ices providers and payers. NA NA

02/08/17 Cyient, Inc. Certon Software, Inc. Safety-critical systems and software solutions for the aerospace and defense industries. $8 1.0x

02/07/17 General Electric Co. Nurego, Inc. Software monetization and business operations platform for industrial IoT applications. NA NA

02/02/17 Vista Equity Partners SunGard Data Systems Enterprise software solutions for the public sector and K-12 education sector. $850 NA

01/31/17 Pamlico Capital Veson Nautical Maritime supply chain management and trading software solutions. $105 4.0x

01/24/17 PSI Serv ices LLC Performance Assessment Network, Inc. Online talent assessment and testing technology serv ices for organizations. NA NA

01/05/17 Kronos, Inc. Financial Management Solutions, Inc. Office administration software solutions for credit unions and the retail banking industry. NA NA

12/31/16 Permira Advisers LLP P&I Personal & Informatik AG Human resource management, payroll accounting, and time management software. $884 6.5x

12/27/16 Roper Technologies, Inc. Deltek, Inc. Enterprise application software for project-based organizations. $2,800 5.2x

$632 3.6x

DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME1 (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS1,5

Application Software M&A registered 291 transactions in1Q 2017, representing a slightdecrease from the prior twoquarters.

1Q 2017 median reportedApplication Software M&A revenue multiples decreasedto 2.3x, but remain in line withfour-year historical averages.

MEDIAN M&A REVENUE MULTIPLES1 (REPORTED)

1.4x 1.5x

1.6x

2.5x2.5x

2.1x

2.3x2.3x

1.4x

2.5x

2.3x

2.5x2.4x

2.5x

2.3x

2.7x

2.3x

In 1Q 2017, ApplicationSoftware companies within theengineering and simulationsoftware sector were inparticularly high demand asevidenced by EQT’s pendingacquisition of Innovyze,Hexagon’s pendingacquisition of MSC Software,and Siemens’s acquisition ofMentor Graphics.

244 246 252 251

227

282 271

289

272

319 320 316 314

281

298 307

291

MEDIAN

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

HW&CO. CONFIDENTIAL

PAGE | 7



SaaS

Pending Advent International Corp. CCC Information Serv ices, Inc. SaaS-based collision repair and insurance estimating software. $3,000 NA

Pending Saba Software, Inc. Halogen Software, Inc. Cloud-based employee performance and talent management software. $165 2.3x

Pending Intel Corp. Mobileye NV Vision-based advanced driver assistance and collision avoidance software. $15,300 42.7x

04/07/17 Genstar Capital Blue Star Sports, Inc. SaaS-based management software platform for youth and amatuer sports. $225 4.5x

04/06/17 Wolters Kluwer Tax & Accounting Tagetik Software SRL SaaS-based corporate performance management and business intelligence software. $318 5.3x

04/03/17 McKesson Corp. CoverMyMeds LLC Electronic health record and pharmacy systems automation software. $1,400 29.5x

04/03/17 Castlight Health, Inc. Jiff, Inc. Cloud-based enterprise health benefits platform to help employers lower healthcare costs. $153 NA

03/29/17 Togetherwork Holdings, LLC ABC Camps LLC Online event registration serv ices for sports camps and events. NA NA

03/28/17 MINDBODY, Inc. Lymber Wellness, Inc. Cloud-based yield management solutions for class and appointment based businesses. NA NA

03/22/17 Fleet Complete BigRoad, Inc. Real-time mobile fleet tracking application for truck drivers and fleet operators. NA NA

02/16/17 Guidewire Software, Inc. ISCS, Inc. SaaS-based software platform for insurance accounting and document management. $160 NA

02/03/17 Atlassian, Inc. Trello, Inc. Online project management, organization, and collaboration platform. $425 NA

01/31/17 Ministry Brands YourMembership.com, Inc. Web-based membership management and engagement software for associations. $290 6.4x

01/27/17 Thoma Bravo LLC PlanView, Inc. SaaS-based resource management software for organizations. NA NA

01/19/17 Synchronoss Technologies, Inc. Intralinks Holdings, Inc. Web-based document exchange platform. $786 2.7x

01/10/17 GE Digital Energy, Inc. Serv iceMax, Inc. Cloud-based field serv ice management platform. $915 NA

01/05/17 Model N, Inc. Revitas, Inc. SaaS-based contract, revenue, and compliance management software. $63 NA

12/31/16 SCISYS Group ANNOVA Systems GmbH SaaS-based news management software tools for broadcasters. $29 4.0x

12/02/16 Insight Venture Partners Ministry Brands LLC SaaS-based technology platform for faith-based and educational organizations. $1,410 8.2x

$318 5.3x

38

49 47

45 46

60

54 53

65

68 70

55

52 51 52 54

48

NOTABLE SAAS M&A TRANSACTIONS1,5

4.6x

5.3x

4.4x

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x

4.9x

5.6x5.4x

4.8x4.6x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME1 (GLOBAL)

SaaS M&A registered 48transactions in 1Q 2017,activity levels consistent withthe prior five quarters.

Median reported SaaStransaction revenue multiples decreased slightly to 4.6x in 1Q 2017.

SaaS M&A activity remainsrobust as both strategic andprivate equity buyers continueto invest across the sector.

Notable 1Q 2017 SaaStransactions include Advent’spending $3.0 billion acquisitionof CCC, Intel’s $15.3 billionacquisition of Mobileye, andMcKesson’s $1.4 billionacquisition of CoverMyMeds.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

PAGE | 8



Data and Analytics

Pending BC Partners Brainspace Corp. Information governance, compliance, and enterprise knowledge sharing for law firms. NA NA

Pending Guidewire Software, Inc. EagleEye Analytics, Inc. Predictive analytics software for the property and casualty insurance industry. $42 NA

Pending Accenture Plc Endgame, Inc. Endpoint security intelligence and analytics platform leveraging machine learning. NA NA

Pending Google, Inc. Fabric Software development and analytics tools, including a crash reporting platform. NA NA

Pending Golden Gate Capital NeuStar, Inc. Real-time information and analytics software and serv ices. $2,712 2.3x

Pending TBG AG Telvent DTN, LLC Agricultural information technology and data solutions. $900 NA

03/29/17 Progress Software Corp. DataRPM Corp. Cognitive predictive maintenance platform for industrial IoT applications. $30 NA

03/29/17 China Oceanwide Holdings Group International Data Group, Inc. Media, data, and marketing platform for the technology industry. $1,000 0.3x

03/20/17 FactSet Research Systems Inc. BI-SAM Technologies SA Software analytics for the financial serv ices sector. $205 7.3x

03/08/17 Google, Inc. Kaggle, Inc. Predictive modeling platform for statistical and analytical outsourcing applications. NA NA

03/06/17 Thermo Fisher Scientific, Inc. Core Informatics LLC Cloud-based scientific data management platform. NA NA

02/16/17 Infogix, Inc. Data3Sixty, Inc. Data governance technology platform designed for data intensive business environments. NA NA

02/09/17 Market Serv ice, Inc. AggData LLC Usable and portable information databases to support business decisions. NA NA

02/02/17 Elsevier BV Plum Analytics, Inc. Altmetrics and research impact measurement software and serv ices. NA NA

02/01/17 Hewlett Packard Enterprise Co. Niara, Inc. Data-driven network security analytics platform for enterprises. NA NA

01/31/17 Carbonite, Inc. Double-Take Software, Inc. Data protection and recovery software for business-critical data and applications. $65 NA

01/10/17 Dun & Bradstreet Corp. Avention, Inc. Sales and marketing opportunity monitoring and intelligence platform. $150 2.5x

12/01/16 Morningstar, Inc. PitchBook Data, Inc. Web-based platform for data, research, and analysis on private and public companies. $225 7.2x

11/10/16 Google, Inc. Apigee Corp. Digital business acceleration and data analytics platform for application management. $472 5.1x

$215 3.8x

NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS1

64

71 74

64 67

72 76

99

89

105

112

102

82

87

99 98

105

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME1 (GLOBAL)

Data and Analytics M&A continued its upwardmomentum, registering 105transactions in 1Q 2017,representing a 28% increaseover 1Q 2016.

In 1Q 2017, median reportedsector transaction multiples increased to 2.8x revenue largely due to heightened interest from large technology incumbents.

Data and Analytics continuesto be a major focus area forenterprises in 2017 asoperational decision-making isincreasingly driven bycomplex and real-time data.

In particular, predictiveanalytics and machinelearning companies areincreasingly sought after asevidenced by Guidewire’spending acquisition ofEagleEye, Accenture’spending acquisition ofEndgame, and Google’sacquisitions of Kaggle andFabric.


1.1x

0.9x

1.4x

1.3x

1.9x 1.9x

2.7x

3.3x

2.8x

2.0x

2.6x2.6x

1.9x

3.1x

2.4x2.5x

2.8x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

PAGE | 9



38

61

56 55 53

48

56

47 45

50

36

52

44

57

60

75

63

1.9x

1.7x

1.2x

2.4x2.5x

2.9x

2.4x

2.7x

3.0x

3.2x3.3x

2.6x

2.9x

2.6x2.7x

3.1x

2.6x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS1

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME1 (GLOBAL)

Infrastructure Software M&A registered 63 transactions in1Q 2017, a slight decreasefrom the prior quarter thoughstill among the most activequarters since 2013.

1Q 2017 median reportedInfrastructure Softwaretransaction multiplesdecreased to 2.6x revenue,but remain in line withhistorical averages.

Strategic buyers remain themost active acquirers ofInfrastructure Softwarecompanies, especially withinthe IT security sector.

Notable strategic IT securitytransactions in 1Q 2017 includeOracle’s pending acquisitionof Palerra, CA’s acquisition ofVeracode, Symantec’sacquisition of LifeLock,Sophos’s acquisition ofInvinceo, and Palo Alto’sacquisition of LightCyber.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

Infrastructure Software

Pending Oracle Corp. Apiary, Inc. Software development tools for API documentation design. NA NA

Pending Broadcom Ltd. Brocade Communications Systems, Inc. Data storage and networking software and solutions. $5,501 2.3x

Pending Micro Focus International Plc HPE (Software Div ision) Diversified enterprise software, including application lifecycle management and analytics. $6,268 NA

Pending Hewlett Packard Enterprise Co. Nimble Storage, Inc. Flash-optimized hybrid storage solutions. $964 2.4x

Pending Oracle Corp. Palerra, Inc. Cloud security automation platform. NA NA

04/04/17 TPG Capital McAfee, Inc. Anti-v irus, data protection and encryption, and database security software. $6,078 NA

04/03/17 CA, Inc. Veracode, Inc. Cloud-based application security software. $614 NA

03/22/17 Cisco Systems, Inc. AppDynamics, Inc. Application performance management software designed for business applications. $3,903 18.9x

03/22/17 Sophos Group Plc Inv incea, Inc. Endpoint security software for enterprise IT applications. $120 12.2x

03/21/17 Madison Dearborn Partners LLC BlueCat Networks, Inc. IP address management, enterprise DNS, and DHCP solutions. $303 NA

02/28/17 Palo Alto Networks, Inc. LightCyber Ltd. Behavioral network attack detection software platform. $105 NA

02/17/17 Hewlett Packard Enterprise Co. SimpliVity Corp. Hyperconverged infrastructure software solutions. $650 NA

02/09/17 Symantec Corp. LifeLock, Inc. Threat detection, identify alerts, and remediation software for consumers and enterprises. $2,096 3.2x

01/31/17 Oracle Corp. Dynamic Network Serv ices, Inc. Internet performance management and optimization software. $700 9.0x

01/23/17 Hewlett Packard Enterprise Co. Cloud Cruiser, Inc. Cloud cost management software for metering and managing hybrid cloud environments. NA NA

01/23/17 Clearlake Capital Group LP LANDESK Software, Inc. Systems lifecycle management, endpoint security, and IT serv ice management software. $1,100 NA

01/19/17 CA Technologies Automic Software GmbH Information technology and business systems automation software. $635 NA

01/09/17 LLR Partners, Inc. BluVector, Inc. Machine learning threat detection and cyber hunting software. $50 NA

$700 6.1xMEDIAN

PAGE | 10



4% 6% 5% 6% 4% 2% 4% 2% 4% 4% 2% 4% 2% 2% 1% 2% 2%

28% 31%

19% 29%

17% 14%

24%

7%

22% 28%

16% 22%

17% 11% 8%

17% 12%

31% 30%

22%

19%

33%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32%

20%

17% 13%

34% 15% 26%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

20%

19%

21% 21% 21% 31%

20%

37% 30%

55%

18% 25%

36% 28%

15%

33%

50%

29%

47%

1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17

Seed Series A Series B Series C Series D / or later

PRIVATE PLACEMENT CAPITAL RAISED BY ROUND1,4 (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

There were 791 privateplacement financings in1Q 2017, in line with theprior quarter.

Total capital raised,however, reboundedsignificantly with $11.7billion invested in 1Q 2017compared to $7.5 billion in4Q 2016.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 1Q 2017, the majority ofprivate capital investedwas in late stage (C –later) rounds, with 47% ofcapital in Series D or laterrounds.

Notable late stage dealsinclude Zoom Video’s $115 million series D raise, led by Sequoia Capital; Turbonomic’s $50 million series E raise, led by General Atlantic; and Visier’s $45 million series D raise, led by Sorenson Capital.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED1,4

820 829

912

829

940 952

1013 997 1033

960

756869

896

826788 791

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17

$ in

Mill

ion

s

Vo

lum

e

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

PAGE | 11



SELECT RECENT SOFTWARE PRIVATE PLACEMENTS1,4

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

03/08/17 SaaS B $16 $26 Canv as Venture Fund; Kresge Foundation; Felicis Ventures Prov ider of cloud-based grants management software.

03/02/17 Infrastructure E $12 $143 Breyer Capital; TPG Capital; Sutter Hill Ventures; Wildcat Venture

Partners

Prov ider of platform-as-a-serv ice enterprise software for

big data, AI, and IoT applications.

03/01/17Data &

Analytics B $50 $105

S&P Global; Goldman Sachs; JP Morgan; Citigroup; Bank of

America; Morgan Stanley; General Catalyst; Breyer Capital;

Wells Fargo

Prov ider of cloud-based financial big data & analytics

software.

02/24/17 SaaS Growth $50 $83 KKRProv ider of SaaS-based IT serv ice management and IT

asset management solutions.

02/15/17 SaaS D $25 $55 DB SchenkerProv ider of freight automation software designed to

connect cargo locally and globally.

02/15/17 SaaS C $23 $44

Union Square Ventures; Emergence Capital; Georgian Partners;

Golden Venture Partners; iNov ia Capital; Version One Ventures;

SoftTech VC

Prov ider of a web-based classroom response platform

enabling deeper professor / student engagement.

02/09/17Data &

Analytics B $12 $19

Smedv ig Capital; Creandum; Alliance Venture; Point Nine

Management

Prov ider of a real-time price comparison platform

designed to track ocean freight market prices.

02/08/17 SaaS F $104 $305 Wellington Management; Greenspring Associates; Summit

Partners, Bessemer Venture Partners; G20 Ventures

Prov ider of a cloud-based unified communications

platform for v oice and v ideo conferencing.

02/02/17Data &

Analytics B $33 $42

Columbus Nov a; Greycoft Partners; Harbert Growth Partners;

Salesforce Ventures; Serv iceNow

Prov ider of a geo-analytics and location intelligence

platform for enterprises.

01/23/17 SaaS B $165 NA Insight Venture PartnersProv ider of integrated software testing automation tools

for enterprise dev elopment teams.

01/23/17 Infrastructure D $45 $120 Third Point Ventures; InterWest Partners; Deutsche Telekom

Capital Partners

Prov ider of a cloud-based network optimization

platform.

01/05/17 SaaS D $50 $169 Altimeter Capital; Scale Venture Partners; Sequoia Capital;

Matrix Partners; Four Riv ers Group; True Ventures

Prov ider of cloud-based human capital management

solutions for mid-sized companies.

Note: Financial information presented above represents reported capital raised only.

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR1

EBITDA MULTIPLE COMPARISON 1Q 2016 VS. 1Q 2017

7.7x

6.6x

7.4x

5.4x

4.4x4.6x 4.4x

3.2x

4.2x4.6x 4.5x

4.8x

3.3x3.0x

3.5x

2.0x

1.3x

7.7x

6.7x

6.0x 6.0x5.5x

5.2x5.0x 5.0x 4.9x 4.9x

4.5x4.0x 3.8x 3.6x 3.5x

3.0x

1.5x

1Q 2016 1Q 2017

49.2x

31.6x

24.3x

16.4x 17.0x

50.4x

12.7x

21.9x

16.8x 15.7x

19.9x

15.5x13.6x

14.6x17.8x

10.1x12.2x

47.8x 46.9x

26.6x

18.1x20.4x

32.0x

17.1x

36.5x

16.8x15.1x

20.8x18.8x

13.5x

18.6x21.0x

22.7x

17.9x

1Q 2016 1Q 2017

REVENUE MULTIPLE COMPARISON 1Q 2016 VS. 1Q 2017STOCK PERFORMANCE (1- & 3-YEAR)

34.0%

14.1%

36.2%

13.1%

26.7%

28.0%

18.7%

35.3%

21.0%

16.7%

19.0%

5.6%

34.2%

18.6%

(2.1%)

33.0%

(10.8%)

40.3%

38.6%

16.7%

71.2%

47.1%

31.0%

43.3%

(1.9%)

104.5%

32.3%

48.5%

2.9%

30.0%

(14.4%)

0.1%

12.8%

(29.4%)

1 Yr Stock 3 Yr Stock

Large-Cap SaaS

HCM

SCM & Logistics

Financial

PLM & Engineering

Marketing

Bellwethers

Small-Cap SaaS

EdTech / Non-Profit

Enterprise

IT Security

HCIT

IT Operations Mgmt.

Data & Analytics

Communication

Data Storage

Energy

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES1

7.7x

6.7x

6.0x

6.0x

5.5x

5.2x

5.0x

5.0x

4.9x

4.9x

4.5x

4.0x

3.8x

3.6x

3.5x

3.0x

1.5x

Large-Cap SaaS

HCM

SCM & Logistics

Financial

PLM & Engineering

Marketing

Bellwethers

Small-Cap SaaS

EdTech / Non-Profit

Enterprise

IT Security

HCIT

IT Operat ions Mgmt.

Data & Analytics

Communication

Data Storage

Energy

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

31% 119% 15% - 30% 19%

22% 73% 22% 70% 29% -

17% 46% 21% 27% 48% 16%

12% 19% 35% 66% - 82%

7% 22% 27% - - 68%

23% 148% 9% 67% - 84%

3% 20% 31% 83% 49% 23%

29% 152% 9% 59% - 43%

15% 20% 25% 57% 57% 42%

7% 17% 30% 55% 79% 31%

19% 38% 24% 32% - 73%

18% 43% 17% 17% 53% 20%

8% 28% 29% 74% 68% 18%

9% 30% 20% 30% - 72%

20% 145% 12% 28% - 89%

14% 139% 10% 21% - 41%

4% 4% 27% 42% 55% 100%

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

The technology IPO window appears tohave opened up in 2017. IPO dollar volumeincreased significantly in the first quarter,with five transactions representing nearly $4billion of total equity issued in thequarter. While much of this dollar volumewas driven by Snap’s $3.4 billion IPO, it is stillencouraging for the technology IPO marketgiven the limited volume of new issuancesover the last 12 months.

For the five technology IPOs in 1Q 2017,shares are trading up by a median 14%above their IPO price, creating a favorableoutlook for additional technology listings inthe near term.

MARKET CAP AT IPO (LTM) 1 REVENUE GROWTH (1YR PRIOR TO IPO) 1OFFERING SIZE AT IPO (LTM) 1

RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE) 1

26%

47%

26%

< 25% 25 - 75% > 75%

45%

25%

30%

$0-50M $50-500M $500M-$1B $1B+

5%

30%

45%

20%

$0 - 50M $50 - 100M $100 - 250M $250M +

(All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months)

6

16

13 13

11

18

7

11

5

15

3

8

0

2

9

4

5

1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17

$0 - 50M $50 - 100M $100 - 250M $250M +

2013 Total: 48 2014 Total: 47 2016 Total: 152015 Total: 31 2017 Total: 5

PAGE | 15



(150.0%)

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

150.0%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

thSto

ck

Pe

rfo

rma

nc

e

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS1

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

92.0%

123.9%

42.6%

(32.1%)

92.5%

65.4% 71.1%

(26.7%)

17.3%

41.1%

75.1%

18.5% 10.6%

43.1%

11.6%

107.0%

24.3%

64.3%

29.5%

117.1%

43.2% 33.4% 20.5%

84.3% 115.3%

49.3%

85.7%

14.2% 70.3%

59.4%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

11/18/15 11/18/15 12/9/15 4/21/16 6/22/16 7/28/16 9/15/16 9/22/16 9/29/16 10/5/16 10/27/16 12/15/16 3/9/17 3/16/17 3/24/17

$9.0 $10.0 $21.0 $14.0 $15.0 $18.0 $12.0 $16.0 $16.0 $18.0 $17.0 $11.0 $14.0 $17.0 $14.0

$2,708.5 $540.1 $4,382.2 $1,129.4 $1,233.0 $503.5 $323.1 $596.6 $1,958.5 $866.0 $838.6 $287.2 $1,240.6 $2,141.9 $662.5

$243.0 $77.5 $462.0 $112.0 $150.0 $94.5 $90.0 $96.0 $237.9 $133.2 $146.2 $287.2 $233.3 $221.0 $126.0

92.0% 123.9% 42.6% (32.1%) 92.5% 65.4% 71.1% (26.7%) 17.3% 41.1% 75.1% 18.5% 10.6% 43.1% 11.6%

MARKET CAP AT OFFER ($M)

PAGE | 16



26.4%

5.4%

9.3%

9.7%

11.7%

13.1%

24.4%

Other

Food & Beverage

Services & Leasing

Automotive

Insurance

Healthcare

Computers & Electronics

60%

50%

57% 55%

60%

66%

60% 58%

51% 50%

2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q'17

4.0x

3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x 5.3x 5.3x 5.2x

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q'17

FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA

LBO LOAN VOLUME BY INDUSTRY2,3 MEDIAN LBO DEBT PERCENTAGES4

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES2,3 MIDDLE MARKET LBO VOLUME BY QUARTER2,3

2016 New-Issue LBO Loan Volume: $3.7 billion Percentage of Total Purchase Price

Median middlemarket LBO loanmultiples in 1Q 2017remained in line withthe prior three years at5.2x leverage.

Middle market LBOloan volumeincreased to $1.1billion in 1Q 2017.

Technologycompanies were thelargest recipients ofLBO loans in 2016,representing 24.4% ofnew issuance.

Median LBO debtpercentages were50% of total purchaseprice in 1Q 2017, inline with the priorquarter and belowhistorical averages.

Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less

$2.0B

$1.2B

$1.6B$1.5B

$1.8B

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$1.2B

$0.7B

$0.9B$1.1B

4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Institutional Pro Rata

PAGE | 17



DEEP TMT EXPERIENCE ACROSS SOFTWARE VERTICALS

Advertising & Marketing Technology Education TechnologyeCommerce AEC Software

FinTechERP and Business Management Software Healthcare IT Human Capital Management

Infrastructure Software Internet and Digital Media Legal TechnologyIT Services

Non-Profit Software Supply Chain & Logistics TechnologySecurity Software

Please click here if you would like to contact HW&Co. in order to discuss any particular sector.

mailto:*[email protected]?subject=TMT Reader Follow Up

PAGE | 18



SELECT HW&CO. TMT TRANSACTIONS

acquired by acquired acquired by acquired by acquired by

recapitalized by acquired byacquired by acquired by

acquired byacquired by

acquired by acquired by

acquired bymajority investment

fromacquired bymerged with merged with acquired by acquired by

acquired by

significant equity

investment from

acquired a majority

stake inacquired by

acquired by

acquired by acquired by acquired byacquired by acquired by

acquired by

acquired by

acquired by acquired byacquired by

acquired by

acquired by majority

recapitalization by

acquired by acquired byrecapitalized by

acquired by

acquired byacquired byacquired bysignificant equity

investment fromacquired by acquired

acquired by

acquired by acquired byacquired by acquired by acquired byacquired byacquired byminority investment

from


strategic investment

fromacquired by acquired by

acquired by acquired byacquired by acquired by

acquired by

and

acquired by acquired by acquired byacquired by

investment from recapitalized byacquired by

strategic investment

from

acquired by

growth equity

investment from

sold its Kline Towers

Division to

acquired by

acquired by

acquired by

GFI Energy Group

a division of

acquired by

B2C

recapitalized by

acquired byminority investment

from

majority investment

from

acquired by

acquired by

and

majority investment

fromacquired by


minority investment

fromacquired by

recapitalized by acquired by

acquired by

significant equity

investment fromacquired by

acquired by acquired by

acquired by

and

acquired bygrowth Investment

from

majority investment

from

http://epiqsystems.com/

http://epiqsystems.com/

http://www.meddatahealth.com/our_business/index.html

http://www.meddatahealth.com/our_business/index.html

http://www.aderant.com/

http://www.aderant.com/

http://www.cltsloyalty.com/

http://www.cltsloyalty.com/

http://www.stream.com/

http://www.stream.com/

http://www.rewardsnetwork.com/

http://www.rewardsnetwork.com/

http://www.knuerr.com/web/de/index_d.html

http://www.knuerr.com/web/de/index_d.html

http://www.bdcast.com/

http://www.bdcast.com/

http://www.oaktreecapital.com/default.aspx

http://www.oaktreecapital.com/default.aspx



PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE1

SA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

AL

AP

PLI

CA

TIO

N S

OFT

WA

RE

Software Bellwethers Google Microsoft Oracle Cisco IBM SAP Adobe Salesforce HPE

Communication Software Nuance NICE Twilio BroadSoft Synchronoss MobileIron Jiv e

Enterprise Software Oracle IBM SAP Adobe ADP Intuit Amadeus Constellation Open Text Sage

Human Capital Management (HCM) ADP Paychex Workday Ultimate Paycom Cornerstone Paylocity Benefitfocus Xactly

Marketing Software Adobe Salesforce Criteo HubSpot Callidus Bazaarv oice ChannelAdv isor

PLM & Engineering Software Dassault Autodesk Hexagon AB Synopsys Ansys Cadence Trimble PTC Nemetschek AVEVA

Supply Chain & Logistics Software Manhattan Descartes Kinaxis Coupa SPS CommerceHub American Park City Amber Road

Energy Software AspenTech AVEVA Silv er Spring PSI EnerNOC

Financial Software Fiserv MSCI Jack Henry SS&C Oracle FSS Square Black Knight Blackline Q2 Holdings Env estnet

Healthcare IT (HCIT) Cerner Veev a athenahealth Medidata Allscripts HMS Ev olent Health Quality Systems Inov alon Model N

EdTech / Non-Profit Software Constellation Tyler Tech Blackbaud 2U NIC K12 Instructure Cambium

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Check Point Serv iceNow Workday Ultimate Veev a LogMeIn athenahealth Guidewire Paycom

Large-Cap SaaS (cont'd) Medidata Proofpoint RealPage ZenDesk Cornerstone Atlassian HubSpot

Small-Cap SaaS (≤ $2Bn Mkt Cap) Ebix Xero CyberArk RingCentral Alarm.Com Q2 Holdings Qualys Callidus Coupa Mimecast

Small-Cap SaaS (cont'd) Box SPS MINDBODY Fiv e9 Benefitfocus Instructure Rapid7 Hortonworks Workiv a Xactly

Small-Cap SaaS (cont'd) Bazaarv oice AppFolio Model N Amber Road Castlight Health Apptio

Data & Analytics Verisk Splunk Teradata Pegasystems Tableau Verint MicroStrategy Talend Inov alon PROS Holdings

IT Operations Management HPE Red Hat Serv iceNow CA Citrix VMware Arista F5 Networks Micro Focus NetScout

IT Operations Management (cont'd) Software AG New Relic Progress Radware Apptio

Data Storage NetApp Iron Mountain CommVault Barracuda Box Nutanix Pure Storage Carbonite

IT Security Cisco Symantec Check Point Palo Alto VeriSign Fortinet Trend Micro Gemalto Proofpoint FireEye

IT Security (cont'd) CyberArk Qualys Mimecast Varonis Rapid7 Cheetah Mobile SecureWorks

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS1

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /

Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. 2017E Rev. 2018E Rev. LTM EBITDA Earnings

SOFTWARE BELLWETHERS

Alphabet Inc. GOOGL $509,965 $536,937 97.0% 11.1% 49.3% 21.9% 1.1% 32.7% 5.7x 5.0x 4.4x 17.4x 27.6x

Microsoft Corporation MSFT 479,429 508,935 99.5% 19.2% 59.0% (2.5%) 19.8% 33.0% 5.6x 4.4x 4.2x 17.1x 29.8x

Oracle Corporation ORCL 182,563 183,556 94.9% 9.0% 7.5% 0.7% 2.6% 41.5% 4.9x 4.6x NM 11.8x 20.6x

Cisco Systems, Inc. CSCO 133,436 169,266 97.9% 18.7% 46.3% (2.1%) 1.1% 30.8% 2.7x 2.7x 2.6x 8.9x 17.2x

IBM Corporation IBM 200,737 164,251 95.3% 15.0% (10.5%) (2.2%) (1.6%) 20.9% 2.5x 2.6x 2.5x 12.0x 13.8x

SAP SE SAP 122,077 120,857 99.4% 22.1% 20.1% 6.1% 5.8% 29.2% 5.0x 4.5x 4.2x 17.2x 30.0x

Adobe Systems Incorporated ADBE 62,413 64,375 99.6% 38.7% 97.4% 21.6% 24.6% 31.9% 10.2x 7.2x 6.2x 32.0x 49.0x

salesforce.com, inc. CRM 57,781 58,362 97.6% 11.7% 40.3% 25.9% 25.1% 8.5% 6.9x 4.8x 4.1x 81.4x NM

Hewlett Packard Enterprise Co. HPE 46,295 39,456 71.4% 33.7% NA (5.3%) (3.9%) 15.3% 0.9x 1.0x 1.1x 6.2x 12.5x

Median $133,436 $164,251 97.6% 18.7% 43.3% 0.7% 2.6% 30.8% 5.0x 4.5x 4.1x 17.1x 24.1x

COMMUNICATION SOFTWARE

Nuance Communications, Inc. NUAN $6,845 $5,047 89.8% (7.4%) 0.1% 0.4% 6.6% 21.0% 3.5x 3.2x NM 16.7x NM

NICE Systems Ltd. NICE 4,370 4,026 96.0% 4.9% 52.1% 10.0% 34.5% 20.9% 4.3x 3.0x 2.9x 20.6x 32.6x

Twilio, Inc. TWLO 1,228 1,489 40.7% NA NA 66.1% 43.8% NM 4.4x 2.5x 1.8x NM NM

BroadSoft, Inc. BSFT 1,224 1,225 83.1% (0.4%) 49.7% 22.3% 20.1% 11.1% 3.6x 2.7x 2.3x 32.3x NM

Synchronoss Technologies, Inc. SNCR 1,187 1,122 48.9% (24.6%) (30.7%) (17.6%) 78.8% 11.9% 2.5x 1.2x 1.0x 21.0x NM

MobileIron, Inc. MOBL 283 388 87.0% (3.8%) NA 9.8% 14.3% NM 1.7x 1.4x 1.3x NM NM

Jiv e Software, Inc. JIVE 225 340 93.7% 13.8% (49.1%) 4.2% 0.7% 1.5% 1.1x 1.1x 1.1x 74.6x NM

Median $1,224 $1,225 87.0% (2.1%) 0.1% 9.8% 20.1% 11.9% 3.5x 2.5x 1.6x 21.0x 32.6x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $182,563 $183,556 94.9% 9.0% 7.5% 0.7% 2.6% 41.5% 4.9x 4.6x NM 11.8x 20.6x

IBM Corporation IBM 200,737 164,251 95.3% 15.0% (10.5%) (2.2%) (1.6%) 20.9% 2.5x 2.6x 2.5x 12.0x 13.8x

SAP SE SAP 122,077 120,857 99.4% 22.1% 20.1% 6.1% 5.8% 29.2% 5.0x 4.5x 4.2x 17.2x 30.0x

Adobe Systems Incorporated ADBE 62,413 64,375 99.6% 38.7% 97.4% 21.6% 24.6% 31.9% 10.2x 7.2x 6.2x 32.0x 49.0x

Automatic Data Processing, Inc. ADP 45,363 45,963 97.3% 14.1% 50.6% 7.4% 8.0% 22.7% 3.8x 3.3x 3.0x 16.6x 27.1x

Intuit Inc. INTU 30,670 29,669 90.3% 11.5% 47.0% 11.6% 10.4% 29.3% 6.3x 5.4x NM 21.6x 37.5x

Amadeus IT Group AMS-ES 24,286 22,322 99.4% 18.4% 20.0% 14.0% 5.3% 38.1% 4.9x 4.5x 4.2x 12.9x 24.4x

Constellation Software Inc. CSU-CA 10,373 10,384 99.0% 19.2% 104.5% 15.6% 15.9% 25.1% 4.9x 3.8x 3.3x 19.4x 50.2x

Open Text Corporation OTEX 9,061 8,918 97.0% 31.3% 44.4% 6.3% 31.7% 34.0% 4.6x 3.4x 3.1x 13.6x 8.1x

Sage Group plc SGE-GB 8,948 8,522 79.4% (12.8%) 13.4% 0.4% 4.2% 29.8% 4.0x 3.7x 3.4x 13.5x 28.9x

Median $38,016 $37,816 97.2% 16.7% 32.3% 6.8% 6.9% 29.6% 4.9x 4.2x 3.4x 15.1x 28.0x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 21



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D) 1

HUMAN CAPITAL MANAGEMENT SOFTWARE

Automatic Data Processing, Inc. ADP $45,363 $45,963 97.3% 14.1% 50.6% 7.4% 8.0% 22.7% 3.8x 3.3x 3.0x 16.6x 27.1x

Paychex, Inc. PAYX 20,962 21,157 93.4% 9.1% 38.6% 7.5% 6.9% 43.1% 6.7x 6.0x 5.6x 15.7x 26.4x

Workday, Inc. WDAY 15,045 10,410 89.2% 8.4% (12.6%) 35.0% 34.2% NM 9.6x 6.0x 5.0x NM NM

Ultimate Software Group, Inc. ULTI 5,857 5,791 87.1% 0.9% 42.9% 26.4% 30.6% 8.8% 7.5x 5.0x 4.3x 85.2x 191.4x

Paycom Software, Inc. PAYC 3,361 3,421 99.6% 61.5% NA 46.5% 36.3% 21.8% 10.2x 6.4x NM 46.9x 78.6x

Cornerstone Ondemand, Inc. CSOD 2,098 2,203 81.4% 18.7% (21.5%) 24.6% 18.1% NM 5.0x 3.8x 3.1x NM NM

Paylocity Holding Corp. PCTY 1,903 1,987 77.8% 18.0% 55.6% 40.8% 33.7% 5.2% 7.2x 4.6x NM 137.6x NM

Benefitfocus, Inc. BNFT 869 858 62.1% (16.2%) (41.6%) 26.0% 19.4% NM 3.7x 2.8x 2.3x NM NM

Xactly Corp XTLY 336 375 73.9% 73.7% NA 25.6% 21.5% NM 3.5x 2.5x 2.2x NM NM

Median $3,361 $3,421 87.1% 14.1% 38.6% 26.0% 21.5% 21.8% 6.7x 4.6x 3.1x 46.9x 52.9x

MARKETING SOFTWARE

Adobe Systems Incorporated ADBE $62,413 $64,375 99.6% 38.7% 97.4% 21.6% 24.6% 31.9% 10.2x 7.2x 6.2x 32.0x 49.0x

salesforce.com, inc. CRM 57,781 58,362 97.6% 11.7% 40.3% 25.9% 25.1% 8.5% 6.9x 4.8x 4.1x 81.4x NM

Criteo SA CRTO 3,102 3,045 94.6% 20.7% 21.7% 35.6% (45.5%) 10.0% 1.7x 2.7x 2.3x 17.2x 37.1x

HubSpot, Inc. HUBS 2,018 2,189 91.6% 38.8% NA 48.9% 38.2% NM 7.4x 4.6x 3.7x NM NM

Callidus Software Inc. CALD 1,069 1,361 99.1% 28.0% 73.6% 19.4% 23.4% NM 5.2x 3.7x NM NM NM

Bazaarv oice, Inc. BV 312 360 70.1% 36.5% (43.4%) 2.2% 3.2% 0.5% 1.5x 1.4x 1.4x NM NM

Channeladv isor Corporation ECOM 224 293 70.1% (0.9%) (70.5%) 12.5% 12.4% NM 2.0x 1.6x NM NM NM

Median $2,018 $2,189 94.6% 28.0% 31.0% 21.6% 23.4% 9.2% 5.2x 3.7x 3.7x 32.0x 43.1x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY-FR $20,778 $22,325 97.1% 9.2% 47.9% 7.3% 6.9% 30.1% 6.1x 5.4x 5.1x 20.4x 45.1x

Autodesk, Inc. ADSK 18,848 19,097 97.0% 48.3% 72.7% (18.0%) 3.7% NM 9.3x 7.7x 6.0x NM NM

Hexagon AB Class B HEXA.B-SE 16,074 13,898 91.2% 3.4% 16.4% 3.2% 7.9% 30.5% 4.6x 4.1x 3.8x 15.1x 21.9x

Synopsys, Inc. SNPS 10,492 10,855 98.7% 48.9% 86.9% 11.2% 5.6% 23.3% 4.2x 3.8x NM 17.9x 37.0x

ANSYS, Inc. ANSS 8,685 9,124 98.1% 19.5% 37.5% 4.8% 6.2% 45.4% 8.8x 7.9x 7.6x 19.3x 34.3x

Cadence Design Systems, Inc. CDNS 9,371 8,775 97.5% 33.2% 102.7% 6.7% 7.7% 22.4% 5.2x 4.6x 4.4x 23.0x 43.2x

Trimble Inc. TRMB 8,420 8,091 99.0% 29.1% (18.5%) 3.1% 7.1% 16.4% 3.6x 3.2x 2.9x 21.7x 61.1x

PTC Inc. PTC 6,594 6,081 92.6% 58.5% 46.3% (6.7%) 5.9% 10.5% 5.8x 5.2x 4.7x 55.4x NM

Nemetschek SE NEM-DE 2,301 2,315 90.6% 24.3% 190.6% 17.9% 17.8% 27.2% 6.2x 4.8x 4.2x 22.7x 44.6x

AVEVA Group plc AVV-GB 1,401 1,560 89.0% 7.7% (29.4%) (8.1%) (2.2%) 26.7% 4.8x 4.8x NM 17.9x 38.6x

Median $9,028 $8,949 97.0% 26.7% 47.1% 4.0% 6.5% 26.7% 5.5x 4.8x 4.5x 20.4x 40.9x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 22




SUPPLY CHAIN AND LOGISTICS SOFTWARE

Manhattan Associates, Inc. MANH $3,655 $3,664 75.9% (8.5%) 45.0% 8.7% 5.4% 33.6% 6.0x 5.4x NM 18.0x 29.5x

Descartes Systems Group Inc. DSG-CA 1,710 1,734 96.4% 16.9% 63.1% 10.2% 14.2% 33.0% 8.4x 6.8x 5.0x 25.4x 72.7x

Kinaxis, Inc. KXS-CA 1,317 1,393 96.1% 66.7% NA 27.0% 30.3% 16.3% 11.4x 7.5x 6.1x 69.6x 129.7x

Coupa Software, Inc. COUP 306 1,270 61.0% NA NA 59.9% 30.9% NM 2.3x 1.5x 1.3x NM NM

SPS Commerce, Inc. SPSC 869 1,005 78.1% 36.2% (6.1%) 21.9% 19.0% 9.8% 4.5x 3.4x NM 45.8x 176.0x

CommerceHub, Inc. Class A CHUBA-US 706 664 89.8% NA NA 14.8% 18.3% 26.3% 7.0x 5.4x 4.6x 26.6x 72.9x

American Software, Inc. AMSWA 228 278 86.1% 14.2% (1.2%) (3.3%) 6.2% 14.0% 2.1x 1.9x NM 14.9x 35.9x

Park City Group, Inc. PCYG 242 239 72.6% 36.6% 34.5% 21.6% NA 20.6% 14.8x NM NM 71.6x 86.0x

Amber Road, Inc. AMBR 214 208 62.8% 42.7% (50.3%) 9.0% 15.5% NM 2.9x 2.3x NM NM NM

Median $706 $1,005 78.1% 36.2% 16.7% 14.8% 16.9% 20.6% 6.0x 4.4x 4.8x 26.6x 72.9x

ENERGY SOFTWARE

Aspen Technology, Inc. AZPN $4,556 $4,482 98.4% 63.1% 36.3% 1.7% 4.6% 47.2% 9.6x 8.9x NM 20.4x 32.4x

AVEVA Group plc AVV-GB 1,401 1,560 89.0% 7.7% (29.4%) (8.1%) (2.2%) 26.7% 4.8x 4.8x NM 17.9x 38.6x

Silv er Spring Networks, Inc. SSNI 463 586 73.3% (23.5%) (34.0%) (36.5%) 3.6% NM 1.5x 1.3x 1.2x NM NM

PSI Aktiengesellschaft PSAN-DE 167 214 86.1% (10.8%) (27.1%) (4.0%) 3.9% 9.7% 0.9x 0.8x 0.8x 8.8x 22.6x

EnerNOC, Inc. ENOC 192 183 76.1% (19.8%) (72.6%) 1.1% (17.5%) NM 0.5x 0.5x NM NM NM

Median $463 $586 86.1% (10.8%) (29.4%) (4.0%) 3.6% 26.7% 1.5x 1.3x 1.0x 17.9x 32.4x

FINANCIAL SOFTWARE

Fiserv , Inc. FISV $30,080 $24,741 97.5% 12.4% 101.3% 4.8% 6.5% 33.9% 5.5x 4.9x 4.7x 16.1x 26.6x

MSCI Inc. MSCI 10,666 8,800 88.9% 31.2% 121.8% 7.0% 9.5% 49.5% 9.3x 8.0x 7.4x 18.7x 33.7x

Jack Henry & Associates, Inc. JKHY 7,264 7,227 97.3% 10.1% 64.6% 7.4% 7.2% 35.4% 5.2x 4.8x NM 14.7x 27.9x

SS&C Technologies Holdings, Inc. SSNC 9,667 7,191 94.5% 11.6% 71.2% 48.1% 14.5% 34.9% 6.5x 5.5x 5.2x 18.7x 54.9x

Oracle Financial Serv ices Software Ltd. 532466-IN 4,630 4,997 95.6% 10.2% 15.1% 3.4% 17.3% 39.2% 7.1x 5.5x NM 18.1x 28.6x

Square, Inc. SQ 5,368 3,599 95.1% 13.1% NA 34.9% (40.5%) NM 3.1x 4.4x 3.4x NM NM

Black Knight Financial Serv ices, Inc. BKFS 5,106 2,680 90.8% 23.4% NA 10.2% 7.8% 43.2% 5.0x 4.3x 3.9x 11.5x 58.5x

BlackLine, Inc. BL 1,160 1,526 94.8% NA NA 47.3% 46.5% NM 9.4x 5.3x NM NM NM

Q2 Holdings, Inc. QTWO 1,283 1,410 92.7% 45.0% 109.8% 38.0% 37.2% NM 8.5x 5.2x 4.1x NM NM

Env estnet, Inc. ENV 1,622 1,403 77.9% 18.8% (20.2%) 37.4% 18.3% 8.0% 2.8x 2.1x 1.8x 35.2x NM

Median $5,237 $4,298 94.6% 13.1% 71.2% 22.5% 12.0% 35.4% 6.0x 5.1x 4.1x 18.1x 31.1x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 23




HEALTHCARE IT

Cerner Corporation CERN $20,431 $19,404 87.2% 11.1% 4.2% 8.4% 10.2% 30.3% 4.3x 3.6x 3.4x 14.0x 30.5x

Veev a Systems Inc VEEV 7,049 5,468 99.2% 104.8% 95.1% 32.9% 24.8% 22.5% 13.0x 9.1x 7.9x 57.7x 79.5x

athenahealth, Inc. ATHN 4,663 4,453 78.3% (18.8%) (30.7%) 17.1% 23.5% 16.2% 4.3x 3.1x 2.6x 26.5x NM

Medidata Solutions, Inc. MDSO 3,191 3,329 98.2% 49.0% 3.4% 18.1% 24.3% 14.2% 6.9x 4.9x 4.2x 48.6x 114.9x

Allscripts Healthcare Solutions, Inc. MDRX 4,024 2,289 83.6% (4.0%) (30.7%) 11.8% 12.8% 15.5% 2.6x 2.2x 2.1x 16.7x NM

HMS Holdings Corp. HMSY 1,790 1,699 84.7% 41.7% 5.8% 4.6% 12.7% 22.3% 3.6x 3.0x 2.7x 16.2x 45.1x

Ev olent Health Inc Class A EVH 1,121 1,172 83.1% 111.2% NA 162.4% 76.5% NM 4.4x 2.1x 1.6x NM NM

Quality Systems, Inc. QSII 943 952 95.8% NA (11.7%) 2.5% 3.1% 16.1% 1.9x 1.8x 1.7x 11.6x NM

Inov alon Holdings, Inc. Class A INOV 1,596 822 62.8% (32.0%) NA (2.2%) 5.7% 17.9% 3.7x 3.3x 3.1x 20.8x 30.5x

Model N, Inc. MODN 240 294 74.8% (3.0%) 2.4% 15.0% 27.1% NM 2.2x 1.5x NM NM NM

Median $2,491 $1,994 84.1% 11.1% 2.9% 13.4% 18.1% 17.1% 4.0x 3.0x 2.7x 18.8x 45.1x

EDTECH / NON-PROFIT SOFTWARE

Constellation Software Inc. CSU-CA $10,373 $10,384 99.0% 19.2% 104.5% 15.6% 15.9% 25.1% 4.9x 3.8x 3.3x 19.4x 50.2x

Tyler Technologies, Inc. TYL 5,975 5,727 87.9% 20.2% 79.0% 27.9% 15.3% 24.0% 7.9x 6.3x 5.7x 32.9x 52.1x

Blackbaud, Inc. BLKB 3,599 3,644 98.5% 21.9% 135.8% 14.6% 10.0% 18.1% 4.9x 4.2x NM 27.2x 87.8x

2U, Inc. TWOU 1,680 1,873 98.2% 75.5% 182.1% 37.1% 40.6% NM 8.2x 4.8x 3.5x NM NM

NIC Inc. EGOV 1,206 1,349 78.0% 12.0% 2.0% 8.7% 5.5% 26.6% 3.8x 3.4x NM 14.2x 24.4x

K12 Inc. LRN 581 779 92.6% 93.6% (17.5%) (1.9%) 3.4% 10.2% 0.7x 0.6x NM 6.4x 70.1x

Instructure, Inc. INST 583 671 86.9% 30.4% NA 51.5% 46.4% NM 5.3x 2.9x 2.3x NM NM

Cambium Learning Group, Inc. ABCD 300 226 83.7% 14.8% 124.8% 5.1% NA 27.1% 2.0x NM NM 7.3x 21.7x

Median $1,443 $1,611 90.3% 21.0% 104.5% 15.1% 15.3% 24.6% 4.9x 3.8x 3.4x 16.8x 51.2x

LARGE-CAP SAAS (Market Cap > $2Bn)

salesforce.com, inc. CRM $57,781 $58,362 97.6% 11.7% 40.3% 25.9% 25.1% 8.5% 6.9x 4.8x 4.1x 81.4x NM

Check Point Software Technologies Ltd. CHKP 16,418 17,955 98.4% 17.4% 50.6% 6.8% 9.2% 49.8% 9.4x 8.2x 7.9x 18.9x 24.8x

Serv iceNow, Inc. NOW 14,000 14,521 92.3% 43.0% 39.9% 38.3% 41.4% NM 10.1x 5.9x 4.8x NM NM

Workday, Inc. WDAY 15,045 10,410 89.2% 8.4% (12.6%) 35.0% 34.2% NM 9.6x 6.0x 5.0x NM NM

Ultimate Software Group, Inc. ULTI 5,857 5,791 87.1% 0.9% 42.9% 26.4% 30.6% 8.8% 7.5x 5.0x 4.3x 85.2x 191.4x

Veev a Systems Inc VEEV 7,049 5,468 99.2% 104.8% 95.1% 32.9% 24.8% 22.5% 13.0x 9.1x 7.9x 57.7x 79.5x

LogMeIn, Inc. LOGM 2,385 5,126 88.6% 93.2% 114.3% 23.7% 209.0% 15.2% 7.1x 2.1x 1.9x 46.7x NM

athenahealth, Inc. ATHN 4,663 4,453 78.3% (18.8%) (30.7%) 17.1% 23.5% 16.2% 4.3x 3.1x 2.6x 26.5x NM

Guidewire Software, Inc. GWRE 3,630 4,165 88.0% 3.4% 11.6% 13.6% 22.2% 4.8% 8.1x 5.9x NM 168.2x NM

Paycom Software, Inc. PAYC 3,361 3,421 99.6% 61.5% NA 46.5% 36.3% 21.8% 10.2x 6.4x NM 46.9x 78.6x

Medidata Solutions, Inc. MDSO 3,191 3,329 98.2% 49.0% 3.4% 18.1% 24.3% 14.2% 6.9x 4.9x 4.2x 48.6x 114.9x

Proofpoint, Inc. PFPT 3,083 3,219 84.5% 38.3% 97.3% 41.5% 40.1% NM 8.2x 4.9x 3.9x NM NM

RealPage, Inc. RP 2,663 2,826 93.3% 67.5% 89.8% 21.3% 22.5% 15.2% 4.7x 3.5x 3.0x 30.9x 169.7x

Zendesk, Inc. ZEN 2,387 2,759 88.0% 34.0% NA 49.4% 44.4% NM 7.7x 4.4x 3.5x NM NM

Cornerstone Ondemand, Inc. CSOD 2,098 2,203 81.4% 18.7% (21.5%) 24.6% 18.1% NM 5.0x 3.8x 3.1x NM NM

Atlassian Corp. Plc TEAM 5,833 2,529 85.2% 19.1% NA 37.2% 40.5% 1.4% 11.0x 6.5x NM NM NM

HubSpot, Inc. HUBS 2,018 2,189 91.6% 38.8% NA 48.9% 38.2% NM 7.4x 4.6x 3.7x NM NM

Median $3,630 $4,165 89.2% 34.0% 40.3% 26.4% 30.6% 15.2% 7.7x 4.9x 4.0x 47.8x 97.2x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 24




SMALL-CAP SAAS (Market Cap < $2Bn)

Ebix, Inc. EBIX $2,162 $1,929 94.1% 50.2% 250.4% 12.4% 12.1% 37.1% 7.2x 6.1x NM 19.5x 20.6x

Xero Limited XRO-NZ 1,786 1,904 91.0% 29.1% (59.2%) 47.2% 70.3% NM 10.3x 4.7x NM NM NM

CyberArk Software Ltd. CYBR 1,548 1,751 85.8% 19.3% NA 34.7% 30.5% 19.6% 7.1x 4.8x 4.0x 36.5x 62.3x

RingCentral, Inc. RNG 1,920 1,739 99.5% 79.7% 53.7% 28.2% 35.6% NM 5.1x 3.2x 2.6x NM NM

Alarm.com Holdings, Inc. ALRM 1,338 1,421 89.3% 29.7% NA 25.0% 28.8% 8.1% 5.1x 3.6x 3.1x 63.4x 140.1x

Q2 Holdings, Inc. QTWO 1,283 1,410 92.7% 45.0% 109.8% 38.0% 37.2% NM 8.5x 5.2x 4.1x NM NM

Qualys, Inc. QLYS 1,210 1,378 95.5% 49.7% 43.5% 20.5% 18.9% 23.8% 6.1x 4.6x 3.9x 25.7x 71.7x

Callidus Software Inc. CALD 1,069 1,361 99.1% 28.0% 73.6% 19.4% 23.4% NM 5.2x 3.7x NM NM NM

Coupa Software, Inc. COUP 306 1,270 61.0% NA NA 59.9% 30.9% NM 2.3x 1.5x 1.3x NM NM

Mimecast Limited MIME 1,131 1,234 91.0% 130.1% NA 26.1% 32.2% NM 6.6x 4.3x NM NM NM

Box, Inc. Class A BOX 1,977 1,139 88.8% 33.0% NA 31.7% 30.8% NM 5.0x 3.3x 2.6x NM NM

SPS Commerce, Inc. SPSC 869 1,005 78.1% 36.2% (6.1%) 21.9% 19.0% 9.8% 4.5x 3.4x NM 45.8x 176.0x

MINDBODY, Inc. MB 1,025 912 97.2% 105.9% NA 37.1% 38.2% NM 7.4x 4.5x 3.6x NM NM

Fiv e9, Inc. FIVN 849 896 87.0% 85.2% NA 25.8% 21.6% 1.5% 5.2x 3.8x NM NM NM

Benefitfocus, Inc. BNFT 869 858 62.1% (16.2%) (41.6%) 26.0% 19.4% NM 3.7x 2.8x 2.3x NM NM

Instructure, Inc. INST 583 671 86.9% 30.4% NA 51.5% 46.4% NM 5.3x 2.9x 2.3x NM NM

Rapid7 Inc. RPD 546 639 77.7% 14.6% NA 42.4% 30.6% NM 3.5x 2.3x 2.0x NM NM

Hortonworks, Inc. HDP 476 612 74.8% (13.2%) NA 51.3% 37.5% NM 2.6x 1.6x 1.3x NM NM

Workiv a, Inc. WK 595 476 82.2% 34.3% NA 23.0% 18.8% NM 3.3x 2.5x 2.2x NM NM

Xactly Corp XTLY 336 375 73.9% 73.7% NA 25.6% 21.5% NM 3.5x 2.5x 2.2x NM NM

Bazaarv oice, Inc. BV 312 360 70.1% 36.5% (43.4%) 2.2% 3.2% 0.5% 1.5x 1.4x 1.4x NM NM

AppFolio Inc APPF 887 319 97.5% 122.2% NA 40.8% 38.5% 1.4% 8.4x 5.1x 4.2x NM NM

Model N, Inc. MODN 240 294 74.8% (3.0%) 2.4% 15.0% 27.1% NM 2.2x 1.5x NM NM NM

Amber Road, Inc. AMBR 214 208 62.8% 42.7% (50.3%) 9.0% 15.5% NM 2.9x 2.3x NM NM NM

Castlight Health, Inc. CSLT 253 187 66.4% 9.6% (84.8%) 35.0% 28.5% NM 2.5x 1.6x 1.3x NM NM

Apptio, Inc. Class A APTI 151 81 47.7% NA NA 24.2% 16.3% NM 0.9x 0.7x NM NM NM

Median $869 $904 86.4% 35.3% (1.9%) 26.0% 28.7% 9.0% 5.0x 3.2x 2.3x 36.5x 71.7x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 25




DATA & ANALYTICS

Verisk Analytics Inc VRSK $16,133 $13,497 92.8% 1.5% 35.8% (3.5%) 7.0% 49.2% 8.1x 7.2x 6.7x 16.4x 29.9x

Splunk Inc. SPLK 7,258 8,611 93.7% 27.3% (16.8%) 42.1% 30.9% NM 7.6x 4.9x 3.8x NM NM

Teradata Corporation TDC 3,686 4,073 93.4% 18.6% (35.5%) (8.2%) (8.9%) 21.4% 1.6x 1.8x 1.8x 7.4x 32.6x

Pegasystems Inc. PEGA 3,362 3,361 96.4% 72.8% 141.7% 9.9% 17.4% 8.6% 4.5x 3.5x NM 51.9x 124.5x

Tableau Software, Inc. DATA 2,816 2,971 79.2% 8.0% (39.0%) 26.5% 8.9% NM 3.4x 2.9x 2.6x NM NM

Verint Systems Inc. VRNT 3,153 2,707 97.0% 29.9% (11.9%) (6.0%) 8.3% 13.9% 3.0x 2.6x 2.5x 21.3x NM

MicroStrategy Incorporated MSTR 1,573 1,765 90.6% 4.5% 61.5% (3.3%) 3.4% 24.4% 3.1x 2.9x NM 12.6x 19.4x

Talend SA TLND 339 855 86.3% NA NA 39.9% 45.1% NM 3.2x 1.8x NM NM NM

Inov alon Holdings, Inc. INOV 1,596 822 62.8% (32.0%) NA (2.2%) 5.7% 17.9% 3.7x 3.3x 3.1x 20.8x 30.5x

PROS Holdings, Inc. PRO 752 747 94.3% 105.2% (24.1%) (8.9%) 9.8% NM 4.9x 4.1x 3.4x NM NM

Median $2,984 $2,839 93.1% 18.6% (14.4%) (2.8%) 8.6% 19.7% 3.6x 3.1x 3.1x 18.6x 30.5x

IT OPERATIONS MANAGEMENT

Hewlett Packard Enterprise Co. HPE $46,295 $39,456 71.4% 33.7% NA (5.3%) (3.9%) 15.3% 0.9x 1.0x 1.1x 6.2x 12.5x

Red Hat, Inc. RHT 15,111 15,422 98.4% 16.1% 61.1% 17.5% 15.1% 17.3% 6.3x 5.0x 4.4x 36.2x 60.8x

Serv iceNow, Inc. NOW 14,000 14,521 92.3% 43.0% 39.9% 38.3% 41.4% NM 10.1x 5.9x 4.8x NM NM

CA, Inc. CA 12,376 13,258 90.7% 3.0% 0.4% (0.1%) (0.3%) 38.3% 3.1x 3.1x NM 8.0x 17.0x

Citrix Systems, Inc. CTXS 12,843 13,038 87.0% 33.3% 79.1% 4.4% (16.1%) 30.1% 3.8x 4.3x 4.2x 12.5x 24.3x

VMware, Inc. VMW 32,582 10,066 99.0% 76.1% (17.6%) 6.7% 7.6% 25.9% 4.6x 4.1x 3.8x 17.7x 8.5x

Arista Networks, Inc. ANET 8,857 9,393 98.2% 109.6% NA 34.8% 31.8% 23.3% 7.8x 5.2x 4.6x 33.7x 51.3x

F5 Networks, Inc. FFIV 8,385 9,237 95.4% 34.7% 30.0% 3.9% 9.3% 30.7% 4.1x 3.6x 3.4x 13.5x 24.9x

Micro Focus International plc MCRO-GB 8,386 6,536 89.1% 26.2% 100.3% 7.7% 5.4% 44.3% 6.3x 5.9x 4.1x 14.3x 39.3x

NetScout Systems, Inc. NTCT 3,447 3,483 98.7% 65.2% 0.1% 44.2% 9.5% 18.7% 3.0x 2.6x NM 16.2x NM

Software AG SOW-DE 2,912 3,029 90.4% 1.3% 6.4% (0.4%) (0.0%) 30.2% 3.0x 3.0x 2.9x 10.0x 19.5x

New Relic, Inc. NEWR 1,744 1,957 92.4% 42.1% NA 49.6% 38.6% NM 7.2x 4.4x NM NM NM

Progress Software Corporation PRGS 1,282 1,403 89.5% 20.4% 30.9% 5.5% (3.3%) 29.2% 3.2x 3.2x NM 10.8x NM

Radware Ltd. RDWR 483 707 97.8% 36.6% (9.6%) (9.2%) 4.1% NM 2.5x 2.2x NM NM NM

Apptio, Inc. Class A APTI 151 81 47.7% NA NA 24.2% 16.3% NM 0.9x 0.7x NM NM NM

Median $8,386 $9,237 92.3% 34.2% 30.0% 6.7% 7.6% 29.2% 3.8x 3.6x 4.1x 13.5x 24.3x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 26






DATA STORAGE

NetApp, Inc. NTAP $8,998 $11,339 97.0% 53.4% 12.8% (5.0%) 3.0% 14.9% 1.7x 1.6x NM 11.2x 36.5x

Iron Mountain, Inc. IRM 14,879 9,407 86.0% 5.2% 28.1% 16.7% 8.7% 22.4% 4.2x 3.8x 3.6x 18.9x 94.7x

CommVault Systems, Inc. CVLT 1,854 2,290 88.3% 17.7% (26.0%) 8.7% 8.4% 2.6% 2.9x 2.5x NM NM NM

Barracuda Networks, Inc. CUDA 1,058 1,220 86.6% 50.1% (34.0%) 12.5% 10.1% 10.0% 3.0x 2.6x NM 30.5x 119.0x

Box, Inc. BOX 1,977 1,139 88.8% 33.0% NA 31.7% 30.8% NM 5.0x 3.3x 2.6x NM NM

Nutanix, Inc. Class A NTNX 2,310 924 40.1% NA NA 150.0% 52.9% NM 3.8x 2.0x 1.6x NM NM

Pure Storage, Inc. Class A PSTG 1,367 901 64.0% (28.2%) NA 65.3% 43.1% NM 1.9x 1.1x 0.9x NM NM

Carbonite, Inc. CARB 489 574 94.4% 154.7% 95.9% 51.5% 17.9% 8.9% 2.4x 1.9x NM 26.5x NM

Median $1,915 $1,179 87.4% 33.0% 12.8% 24.2% 14.0% 10.0% 3.0x 2.2x 2.1x 22.7x 94.7x

IT SECURITY

Cisco Systems, Inc. CSCO $133,436 $169,266 97.9% 18.7% 46.3% (2.1%) 1.1% 30.8% 2.7x 2.7x 2.6x 8.9x 17.2x

Symantec Corporation SYMC 20,585 18,986 98.6% 66.9% 52.0% (14.3%) 38.8% 24.0% 5.4x 3.8x 3.9x 22.7x NM

Check Point Software Ltd. CHKP 16,418 17,955 98.4% 17.4% 50.6% 6.8% 9.2% 49.8% 9.4x 8.2x 7.9x 18.9x 24.8x

Palo Alto Networks, Inc. PANW 9,378 10,371 68.0% (30.9%) 58.8% 36.3% 27.3% NM 6.0x 4.0x 3.4x NM NM

VeriSign, Inc. VRSN 11,292 8,914 94.7% (1.6%) 61.5% 7.8% 1.5% 65.2% 9.9x 9.5x NM 15.2x 20.2x

Fortinet, Inc. FTNT 5,677 6,724 99.5% 25.2% 68.9% 26.4% 20.3% 7.5% 4.5x 3.3x 3.0x 59.3x NM

Trend Micro Incorporated 4704-JP 4,970 6,232 98.2% 21.2% 44.7% 18.2% 9.0% 34.5% 4.1x 3.6x 3.5x 11.9x 27.5x

Gemalto N.V. GTO-NL 5,087 5,066 76.6% (24.3%) (53.0%) 1.5% (1.7%) 19.9% 1.4x 1.4x 1.3x 7.3x 24.7x

Proofpoint, Inc. PFPT 3,083 3,219 84.5% 38.3% 97.3% 41.5% 40.1% NM 8.2x 4.9x 3.9x NM NM

FireEye, Inc. FEYE 1,864 2,238 67.3% (29.9%) (80.4%) 14.6% 3.8% NM 2.6x 2.3x 2.1x NM NM

CyberArk Software Ltd. CYBR 1,548 1,751 85.8% 19.3% NA 34.7% 30.5% 19.6% 7.1x 4.8x 4.0x 36.5x 62.3x

Qualys, Inc. QLYS 1,210 1,378 95.5% 49.7% 43.5% 20.5% 18.9% 23.8% 6.1x 4.6x 3.9x 25.7x 71.7x

Mimecast Limited MIME 1,131 1,234 91.0% 130.1% NA 26.1% 32.2% NM 6.6x 4.3x NM NM NM

Varonis Systems, Inc. VRNS 726 862 99.2% 74.2% (14.0%) 29.3% 25.9% NM 4.4x 3.1x 2.8x NM NM

Rapid7 Inc. RPD 546 639 77.7% 14.6% NA 42.4% 30.6% NM 3.5x 2.3x 2.0x NM NM

Cheetah Mobile, Inc. CMCM 1,310 393 62.7% (34.2%) NA 17.0% 15.7% 1.7% 1.9x 1.5x 1.3x 109.8x NM

SecureWorks Corp. Class A SCWX 621 100 58.5% NA NA 26.5% 9.4% NM 1.4x 1.2x 1.1x NM NM

Median $3,083 $3,219 91.0% 19.0% 48.5% 20.5% 18.9% 23.9% 4.5x 3.6x 3.0x 20.8x 24.8x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

Healthcare & Life Sciences

IndustrialsEnergy, Power & Infrastructure

Industrials

PAGE |

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Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

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1. FactSet.

2. PNC Capital Markets.

3. S&P LCD stats.

4. PitchBook.

5. HW&Co. proprietary transaction information.

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