technology, media & telecom update july 2013 · selected hw&co. tmt transactions ......

Highlighted M&A Transactions…………… 3

Technology, Media & Telecom Update July 2013

Note: All market data in the following materials is as of

June 30, 2013.

U.S. TMT M&A Overview………………………………………………………………………………………. 4

U.S. TMT Initial Public Offerings……………………………………………………………………………….. 5

TMT Public Market Overview…………………………………………………………………………………… 6

Public Market Trading Statistics by Vertical

Bellwethers………………………………………………………………………………………………. 7

Data and Information Services…………………………………………………………………………... 7

Internet and Digital Media……………………………………………………………………………….. 8

IT and Tech-Enabled Services…………………………………………………………………………… 9

Software – Application…………………………………………………………………………………. 10

Software – Infrastructure……………………………………………………………………………….. 11

Software as a Service (“SaaS”) ………………………………………………………………………… 12

Selected HW&Co. TMT Transactions………………………………………………………………………….. 13

Contents

For more information, please visit http://www.harriswilliams.com/industries/tmt

• Number of Cashless Payments to Reach 175 B by 2020 • Digital Health Investment On The Rise • Gartner: PC, Tablet and Mobile Phone Shipments to Grow • Cleantech Turns a Corner in 2Q13 • Encryption in the Cloud

• Keynote Systems to be taken private by Thoma Bravo • Salesforce to acquire ExactTarget • Cisco Systems to acquire Composite Software • Adobe to acquire Neolane • Thoma Bravo to acquire Intuit Financial Services

Harris Williams & Co.’s Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies through dedicated TMT professionals. Below is a list of our senior TMT contacts.

+1 (617) 482-7501 +1 (415) 217-3411 +44 20 7518 8901

Boston San Francisco London

Group Overview

Jeff Bistrong Garin Arevian Sam Hendler Derek Swaim Tyler Dewing

Kojo Appenteng

Mike Wilkins Eric Reimers Laura Boyd

Thierry Monjauze Red Norrie

Francois Morin

What We’ve Been Reading…………………... 2

UPDATE

• HW&Co. represented Business & Legal Resources, Inc. (“BLR”) in its recapitalization.

• BLR is the leading provider of state-specific compliance management and training solutions across multiple end markets serving over 51,000 customers in the U.S.

• BLR holds the top market position in state-specific human resources, safety, and environmental compliance.

• TMT Deal Contact: Garin Arevian.

Monthly Spotlight

a portfolio company of

has been recapitalized

Subscription Services Revenue by Market

52%

17%

8%4%

7%12% 33%

17%5%3%

4%

16%

22%

2012E

2017P

HRSafetyEnvironmentalCompensation & BenefitsLegal & PoliticsNew VerticalsTraining

http://www.harriswilliams.com/industries/tmt

mailto:[email protected]















What We’ve Been Reading

Cleantech Group released its preliminary 2Q13 results, reporting that worldwide clean technology venture investment during the quarter totaled $1.76 billion, a 56% increase over the $1.1 billion reported in the first quarter. The most active investment sector was Energy Efficiency with $378 million in investments, followed by Biofuels and Biochemicals at $231 million. North America accounted for 71% of the total venture investment, raising $1.25 billion, up 74% from the first quarter. Read the full article here.

Cleantech Turns a Corner in 2Q13 PYMNTS 7/3/13

2

According to Gartner, worldwide devices, including shipments of PCs, tablets and mobile phones, are projected to reach 2.35 billion units in 2013, a 5.9% increase from 2012. The driving factor in the market is sales in tablets, smartphones, and ultramobiles, as PC shipments remain on the decline. However, growth in the tablet and smartphone markets are facing challenges as these devices gain longer life cycles. In addition, there has also been a shift from premium tablets to basic tablets, as evidenced by sales of the iPad Mini representing 60% of overall iOS tablet sales in the first quarter of 2013. Read the full article here.

Gartner Says Worldwide PC, Tablet and Mobile Phone Shipments to Grow 5.9% in 2013 Gartner 6/24/2013

According to a report from Rock Health, investment in mobile health technology grew by 12% over last year. During the first half of 2013, approximately $850 million was invested in 90 different companies, representing a 25% increase over the same period in 2012. Emerging themes of digital health investing in 2013 include remote patient monitoring, analytics and big data, electronic health records, wellness, and personal health tools and tracking. Read the full article here.

Digital Health Investment On The Rise Healthcare IT News 7/1/13

A.T. Kearney research indicates the EU will lead the charge on cashless transactions, decreasing the number of cash transactions to 60% by 2020. From a global perspective, 280 billion noncash payments are made per year. In the EU, noncash transactions will increase from approximately 90 billion to more than 175 billion, which represents an annual CAGR of 8% versus the market growth rate of 3% per annum. Read the full article here.

Number of Cashless Payment Transactions to Reach 175 Billion by 2020 The Paypers 7/3/2013

The Ponemon Institute recently published its “Encryption in the Cloud” report, which summarizes findings of a survey of over 4,000 businesses and IT managers globally. Among the findings: approximately half of respondents indicated that their organizations transfer sensitive data to the cloud, 35% said their security posture decreased as a result of cloud adoption, and 44% believe their cloud provider is responsible for protecting data. In addition, there are significant discrepancies in the level of encryption being utilized by IT organizations and cloud providers. As infrastructure-as-a-service becomes an increasingly viable alternative for organizations globally, cloud security will continue to be an area attracting significant investment and scrutiny. Read the full report here.

Encryption in the Cloud Ponemon Institute 7/1/2013

http://www.crn.com/slide-shows/security/240157708/protecting-data-in-the-cloud-10-top-security-measures.htm?pgno=1

http://www.pymnts.com/news/businesswire-feed/2013/july/03/cleantech-turns-a-corner-in-2q13-20130703005621

http://www.gartner.com/newsroom/id/2525515

http://www.healthcareitnews.com/news/digital-health-investment-rise?single-page=true

http://www.thepaypers.com/news/payments-general/number-of-cashless-payment-transactions-to-reach-175-bln-by-2020/751742-27

http://www.ponemon.org/local/upload/file/Encryption_in_the_Cloud FINAL_6_2.pdf

Highlighted Recent TMT M&A Transactions

3

• Keynote Systems operates the world’s largest on-demand performance monitoring and testing infrastructure for web and mobile sites, collecting over 700 million performance measurements daily.

• The take-private acquisition is a play on multiple compelling macro trends, including the increasing complexity of websites, the proliferation of mobile devices, and the shift to 4G and LTE networks.

• Thoma Bravo’s offer of $20 per share represents a 48% premium over Keynote’s June 21, 2013 closing stock price.

Keynote Systems to be taken private by Thoma Bravo

Ent. Value: $341 M Revenue Multiple: 2.8x EBITDA Multiple: 23.1x

6/23/13

• Salesforce.com is the world’s number one CRM platform in terms of sales and service, while ExactTarget is a leading cloud marketing platform for more than 6,000 companies.

• The acquisition will allow Salesforce.com to create a world-class marketing platform across email, social, mobile and the web, dubbing it the technology leader in marketing.

Salesforce.com to acquire ExactTarget

Ent. Value: $2.4 B Revenue Multiple: 7.1x EBITDA Multiple: NA

6/4/13

• Composite Software provides data virtualization solutions that connect many types of data from across a network and make it appear as if it’s in one place.

• Together with SolveDirect, a provider of cloud-delivered services management and integration solutions which Cisco acquired in March, the two companies will help provide cross-domain data and workflow integration capabilities that enable real-time business insights and operations.

Cisco Systems to acquire Composite Software

Ent. Value: $180 M Revenue Multiple: NA EBITDA Multiple: NA

6/20/13

• Neolane SA provides enterprise marketing software to manage, automate, and optimize marketing programs.

• The acquisition of Neolane brings critical cross-channel campaign management capabilities to the Adobe Marketing Cloud.

• The Neolane acquisition builds upon Adobe’s strategy of combining organic innovation with key acquisitions to deliver the most robust set of solutions for digital marketers today.

Adobe to acquire Neolane

Ent. Value: $600 M Revenue Multiple: 10.3x EBITDA Multiple: NA

6/27/2013

• Intuit Financial Services provides on-demand financial management solutions to financial institutions.

• The transaction will result in a stand-alone company focused on providing a digital banking platform and market-leading mobile solutions to financial institutions.

• The transaction includes an Internet banking platform, digital payments, mobile banking, Purchase Rewards, FinanceWorks, and digital banking add-on solutions as well as third-party solutions.

Thoma Bravo to acquire Intuit Financial Services

Ent. Value: $1.0 B Revenue Multiple: 3.4x EBITDA Multiple: NA

7/1/2013

Summary M&A

Statistics

LTM M&A Volume and Revenue Multiples LTM M&A Volume by Segment

U.S. TMT M&A Overview

Note: Includes announced or closed transactions over the last three calendar years.

Last Three Years M&A Transaction Volume

Private Equity Activity by Segment

4

Note: Includes announced or closed transactions over the last twelve months.

Note: Includes all announced or closed transactions over the last four quarters.

1.9 x

3.4 x

2.0 x

2.4 x2.8 x

3.4 x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

4.0 x

0

100

200

300

400

500

600

700

800

Data and Information

Services

Internet and Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

LTM

Revenue M

ultipleTran

sact

ion

Volu

me

M&A Transaction Volume Median LTM Revenue Multiple


Services5%


37%


16%


29%


9%

Software –SaaS7%

111

826

350

638

159102112

827

348

657

139 140

40

290

125

235

42 51

0

100

200

300

400

500

600

700

800

900

Data and Information Services

Internet & Digital Media IT and Tech-Enabled Services



Software –SaaS

Tra

nsac

tion

Vol

ume

2011 M&A Transaction Volume 2012 M&A Transaction Volume 2013 YTD M&A Transaction Volume

All Acquisitions Private Equity Acquisitions

Segment Q3'12 Q4'12 Q1'13 Q2'13 Total Q3'12 Q4'12 Q1'13 Q2'13 Total

Data and Information Services 26 25 20 20 91 8% 12% 5% 5% 8%

Internet and Digital Media 212 195 135 155 697 12% 8% 7% 6% 8%

IT and Tech-Enabled Services 89 94 62 63 308 4% 10% 5% 5% 6%

Software - Application 163 142 115 120 540 7% 6% 6% 4% 6%

Software - Infrastructure 32 38 18 24 112 3% 8% 6% 21% 9%

Software - SaaS 35 37 23 28 123 11% 8% -- 4% 7%

Total 557 531 373 410 1,871 8% 8% 6% 6% 7%

Recent IPO Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last twelve months. * Company has since been acquired.

Number of Transactions by Tier Percentage of Transactions by Tier

Tier by Market Capitalization on IPO Pricing Date

$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +

U.S. TMT Initial Public Offerings

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. 5

0

10

20

30

40

50

60

2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013

($ in millions) IPO Details Financials and Trading Multiples at IPO (LTM)Gross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA06/26/13 Tremor Video, Inc. 75.0$ 0.0% (10.0%) 112.7$ NM 24.8% 3.7x NM06/25/13 Luxoft Holding, Inc. 69.6 50.0% 17.0% 314.6 16.6% 16.0% 2.2x 13.0x06/20/13 Gogo Inc. 187.0 0.0% (17.8%) 250.0 3.6% 38.9% 8.3x NM06/11/13 Gigamon LLC (nka:Gigamon Inc.) 128.3 33.3% 45.1% 105.8 8.3% 41.6% 7.7x 92.9x06/06/13 Textura Corporation 75.0 0.0% 73.4% 27.3 NM 159.9% 17.3x NM06/06/13 LightInTheBox Holding Co., Ltd. 78.9 0.0% 41.7% 236.4 2.1% 88.9% 2.3x NM05/22/13 ChannelAdvisor Corporation 80.5 0.0% 12.4% 56.3 NM 29.3% 6.7x NM05/16/13 Marketo, Inc. 78.8 5.1% 91.3% 65.9 NM 103.6% 12.0x NM05/16/13 Tableau Software, Inc. 254.2 39.0% 78.8% 143.1 0.1% 129.5% 12.3x NM05/08/13 Cyan, Inc. 88.0 0.0% (5.0%) 108.0 NM 167.2% 5.5x NM05/02/13 Qiwi plc 212.5 100.0% 36.5% 307.0 20.8% 20.8% 1.7x 9.0x04/18/13 Blackhawk Network Holdings, Inc. 230.0 100.0% 0.9% 992.6 9.0% 32.0% 1.2x 12.8x04/17/13 Intelsat Global Holdings S.A. 347.8 0.0% 11.1% 2,621.1 76.4% 1.1% 6.9x 9.0x04/11/13 Rally Software Development Corp. 84.0 0.0% 77.3% 56.8 NM 37.6% 6.8x NM04/11/13 EVERTEC, Inc. 505.3 75.3% 9.9% 346.5 44.9% 6.2% 6.5x 14.5x03/22/13 West Corporation 425.5 0.0% 10.7% 2,638.0 25.2% 5.9% 2.1x 8.1x03/21/13 Marin Software Incorporated 105.0 0.0% (26.9%) 59.6 NM 64.9% 8.1x NM03/20/13 Model N, Inc. 104.5 11.0% 50.7% 88.5 1.7% 35.9% 4.8x NM03/12/13 Silver Spring Networks, Inc. 80.8 0.0% 46.7% 196.7 NM (17.0%) 4.8x NM03/04/13 Professional Diversity Network LLC 21.0 0.0% (47.6%) 6.2 41.3% 10.5% 4.4x 9.8x02/14/13 Xoom Corporation 101.2 17.5% 43.3% 80.0 NM 60.0% 9.1x NM02/07/13 Health Insurance Innovations, Inc. 65.3 0.0% (24.9%) 41.9 10.7% 40.4% 1.7x NM01/18/13 Cyrusone Inc. 313.5 0.0% 9.2% 220.8 48.3% 21.5% 5.3x NM11/15/12 Ruckus Wireless, Inc. 126.0 16.7% (14.6%) 193.5 12.0% 156.4% 4.9x 40.6x10/15/12 Workday, Inc. 637.0 0.0% 128.9% 199.1 NM 127.9% 41.3x NM10/10/12 Shutterstock, Inc. 76.5 0.0% 228.1% 155.2 17.6% 87.0% 4.8x 28.9x10/09/12 Ambarella, Inc. 36.0 18.3% 180.5% 107.2 16.5% 13.2% 0.9x 5.2x10/04/12 Fleetmatics Group Limited 132.8 20.0% 95.5% 117.5 16.6% 81.6% 7.3x 43.1x10/02/12 LifeLock, Inc. 141.3 1.3% 30.1% 250.6 7.7% 54.4% 3.9x 48.5x09/27/12 Qualys, Inc. 90.9 11.6% 34.3% 83.4 8.3% 27.5% 4.8x 57.6x09/19/12 Trulia, Inc. 102.0 16.7% 82.9% 51.3 NM 159.1% 12.3x NM08/01/12 Eloqua* 92.0 12.5% NA 84.7 1.1% 42.3% 4.8x NM07/25/12 E2open, Inc. 70.3 20.0% 16.7% 63.9 1.6% 15.1% 5.3x NM07/19/12 Kayak Software Corporation* 91.0 0.0% NA 265.4 19.4% 32.9% 4.9x 28.8x07/19/12 Palo Alto Networks, Inc. 260.4 24.4% 0.4% 219.7 3.6% 350.4% 15.7x NM

Median 101.2$ 1.3% 30.1% 117.5$ 11.4% 38.9% 5.3x 14.5x

0%

20%

40%

60%

80%

100%

120%

140%

Data and Information Services

Internet & Digital Media




Software –SaaS

Comparable Trading

Summary

Valuation Summary

Current Valuation Versus Historical Five-Year Average

Five-Year Average

Note: Based on current TEV/LTM EBITDA versus five-year historical average.

Note: Public comparables exclude companies with market capitalization below $500 million.

TMT Public Market Overview

6

LTM Revenue LTM EBITDAIndustry Segment 1 Month 12 Month Growth Margin LTM 2013P 2014P LTM 2013P 2014P

Bellwethers (3.7% ) 13.2% 8.1% 30.5% 2.1x 2.2x 2.1x 7.6x 7.0x 6.4x

Data and Information Services (1.2% ) 31.4% 8.2% 27.6% 3.1x 3.0x 3.0x 10.9x 10.2x 9.5xDiversified Information Services (2.9%) 30.7% 10.1% 28.3% 3.4x 3.2x 3.0x 10.9x 10.2x 9.7xFinancial Data and Media 0.5% 32.5% 7.1% 36.1% 4.8x 4.6x 4.3x 11.3x 10.2x 9.5xLender/Mortgage/Real Estate Data and Processing (1.2%) 40.4% 9.8% 19.1% 2.3x 2.4x 2.3x 10.4x 8.2x 8.0xMarket Data and Research 3.4% 20.7% 9.6% 14.5% 1.6x 2.3x 2.1x 11.0x 14.1x 11.2x

Internet & Digital Media 4.5% 35.2% 16.9% 21.4% 3.1x 2.8x 2.6x 11.8x 10.5x 9.6xAdvertising & Marketing 12.9% 16.8% 29.9% 27.1% 3.6x 3.3x 2.9x 14.7x 13.4x 11.6xContent Delivery & Management (1.6%) 12.9% 3.4% 22.6% 2.1x 2.0x 1.9x 11.9x 8.1x 7.3xContent & Services 1.0% 32.1% 19.1% 15.5% 3.2x 2.9x 2.6x 8.5x 14.0x 12.1xDiversified Media 2.3% 46.8% 4.3% 25.5% 2.4x 2.3x 2.2x 9.8x 9.4x 8.8xe-Commerce 5.1% 51.7% 20.0% 19.1% 3.6x 3.6x 3.1x 18.7x 14.6x 12.9x

IT and Tech-Enabled Services 0.3% 33.4% 10.9% 16.1% 1.4x 1.4x 1.4x 9.2x 8.7x 7.9xGovernment IT & BPO (2.1%) 37.7% 5.1% 9.0% 0.6x 0.6x 0.6x 6.3x 6.6x 6.5xIT Services 1.6% 33.7% 7.5% 12.1% 0.6x 1.4x 1.3x 5.1x 8.5x 8.2xOffshore BPOs 2.0% 27.8% 14.2% 20.6% 2.0x 1.9x 1.7x 9.9x 9.6x 8.5xOnshore BPOs (2.4%) 40.0% 6.4% 13.3% 0.8x 1.1x 1.1x 5.5x 5.3x 4.9x

Software – Application (0.3% ) 24.8% 11.0% 21.1% 3.7x 3.4x 3.1x 14.0x 10.7x 9.5xCustomer Engagement/Call Center Management (0.1%) 9.5% 5.6% 18.6% 1.9x 1.8x 1.7x 11.4x 7.5x 7.1xEnterprise Software (1.3%) 21.6% 8.8% 26.6% 3.8x 3.6x 3.3x 14.1x 13.2x 10.5xHuman Capital Management 3.4% 52.0% 43.1% 10.7% 12.6x 9.8x 7.4x 65.4x 44.5x 28.3xProduct Lifecycle Management/Technical Design (2.4%) 25.1% 7.4% 22.2% 2.7x 2.5x 2.3x 12.6x 8.7x 8.1xVertically Focused - Financial Technology 1.5% 38.8% 13.2% 21.9% 3.7x 3.5x 3.2x 15.8x 11.5x 10.4xVertically Focused - Healthcare IT (1.0%) 4.8% 11.0% 24.2% 2.8x 2.6x 2.5x 11.6x 10.2x 9.3xVertically Focused - Public Sector 0.7% 30.1% 19.6% 19.7% 3.6x 3.4x 3.1x 18.1x 15.5x 13.7x

Software – Infrastructure (0.2% ) 9.1% 6.9% 21.9% 2.9x 2.9x 2.8x 11.6x 9.6x 8.7xEnterprise IT Management (1.6%) 4.7% 4.2% 21.1% 2.9x 2.9x 2.8x 15.2x 10.5x 9.1xEnterprise Storage 2.2% 6.9% 7.1% 19.6% 2.1x 2.0x 1.6x 10.8x 6.6x 5.8xSecurity 0.1% 18.6% 13.6% 30.1% 4.6x 4.9x 4.3x 9.4x 9.7x 10.7x

Software – SaaS 7.5% 45.2% 29.0% 13.8% 8.6x 7.2x 6.0x 27.8x 29.2x 23.5x

NASDAQ (1.9% ) 16.0%

Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple

7

($ in millions) Stock Price CY2013P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY2013P LTM CY2013P

Diversified Information Services

Thomson Reuters Corporation 27,007.5$ 32.57$ 93.4% (4.0%) 16.8% 2.6x 2.6x 11.2x 9.9xExperian plc 17,095.7 17.37 88.6% NA NA 4.3x NA 12.7x NAReed Elsevier plc 13,289.5 11.35 93.3% 0.9% 2.7% NA 1.2x NA 3.8xVerisk Analytics, Inc. 10,053.2 59.70 95.7% 12.3% 13.8% 7.1x 6.5x 15.9x 14.4xAlliance Data Systems Corporation 8,904.1 181.03 97.7% 17.5% 23.4% 4.5x 4.0x 14.8x 12.6xEquifax Inc. 7,107.5 58.93 92.2% 7.1% 23.6% 3.9x 3.7x 12.6x 10.6xIHS Inc. 6,866.1 104.38 87.8% 9.5% 56.9% 4.8x 4.5x 21.3x 14.0xWolters Kluwer NV 6,240.8 21.13 90.6% NA NA 1.9x NA 7.4x NAInforma plc 4,492.8 7.45 91.1% NA NA 2.9x NA 9.7x NANeuStar, Inc. 3,203.2 48.68 96.2% 8.8% 19.6% 4.1x 3.8x 9.1x 7.8xUBM plc 2,432.2 9.97 82.5% 7.6% 9.1% 2.6x 2.6x 10.6x 10.4xAcxiom Corporation 1,678.1 22.68 98.7% (1.2%) (7.8%) 1.6x 1.6x 8.0x 8.3xFair Isaac Corporation 1,644.0 45.83 90.0% 11.6% 24.3% 2.8x 2.6x 10.5x 8.4x

Median 6,866.1$ 92.2% 8.2% 18.2% 3.4x 3.2x 10.9x 10.2x

Financial Data and Media

Moody's Corporation 13,581.3$ 60.93$ 87.4% 7.6% 12.5% 4.8x 4.6x 11.3x 10.1xFactSet Research Systems Inc. 4,485.4 101.94 97.2% 6.3% 8.6% 5.0x 4.8x 13.9x 12.5xMSCI Inc. 4,016.4 33.27 90.2% 7.1% 3.6% 4.7x 4.5x 10.5x 10.3xDun & Bradstreet Corporation 3,892.7 97.45 96.0% (0.4%) 6.0% 3.1x 3.0x 9.5x 8.8xMorningstar Inc. 3,607.5 77.58 99.7% 7.3% NA 4.9x 4.6x 15.8x NA

Median 4,016.4$ 96.0% 7.1% 7.3% 4.8x 4.6x 11.3x 10.2x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Information Services, Inc. 12,556.9$ 42.84$ 93.2% 5.0% 13.9% 2.9x 2.7x 10.0x 9.0xCoStar Group Inc. 3,683.8 129.07 98.7% 23.3% 79.8% 9.5x 8.5x 61.3x 31.2xLender Processing Services, Inc. 2,757.3 32.35 94.8% (6.8%) 49.6% 1.8x 2.0x 10.8x 7.4xCoreLogic, Inc. 2,213.8 23.17 78.5% 1.7% 44.5% 1.7x 1.7x 8.1x 5.9x

Median 3,220.5$ 94.0% 3.3% 47.0% 2.3x 2.4x 10.4x 8.2x

Market Data and Research

Gartner Inc. 5,342.9$ 56.99$ 96.4% 11.2% 31.8% 3.2x 2.9x 19.4x 14.8xIpsos SA 1,707.5 37.69 86.7% NA NA 1.1x NA 9.5x NAForrester Research Inc. 753.2 36.69 98.1% 3.1% (18.0%) 1.6x 1.6x 11.0x 13.3x

Median 1,707.5$ 96.4% 7.1% 6.9% 1.6x 2.3x 11.0x 14.1x

Total Data and Information Median 4,485.4$ 93.3% 7.1% 15.4% 3.1x 3.0x 10.9x 10.2x


Services



Bellwethers

Apple Inc. 372,202.5$ 396.53$ 56.2% 4.7% (8.2%) 1.3x 1.3x 4.0x 4.2xGoogle Inc. 292,076.9 880.37 95.6% 19.2% 34.0% 4.6x 4.1x 14.7x 11.4xMicrosoft Corporation 288,489.0 34.55 96.5% 14.9% 20.0% 2.9x 2.6x 7.2x 6.3xInternational Business Machines Corporation 211,901.6 191.11 88.5% (0.9%) 4.1% 2.2x 2.2x 8.7x 8.2xSamsung Electronics Co. Ltd. 153,379.9 1,171.97 84.7% NA NA 0.6x NA 2.7x NAOracle Corporation 142,212.1 30.71 84.3% 1.6% 6.7% 3.5x 3.4x 7.4x 7.0xCisco Systems, Inc. 130,054.4 24.34 97.4% 5.3% 18.6% 2.0x 2.0x 7.4x 6.2xAmazon.com Inc. 126,416.4 277.69 97.5% 22.5% 97.7% 1.9x 1.6x 44.9x 24.5xIntel Corporation 120,447.3 24.23 89.9% 0.3% (6.3%) 2.0x 2.0x 5.1x 5.2xQUALCOMM Inc. 105,553.4 61.09 89.2% 24.0% 35.6% 3.5x 3.0x 9.8x 7.7xSAP AG 87,098.9 73.04 86.5% 9.5% 10.7% 4.1x 3.8x 12.2x 11.1xeBay Inc. 67,121.7 51.72 89.1% 16.0% 33.1% 4.1x 3.6x 13.7x 10.8xEMC Corporation 49,621.8 23.62 83.8% 7.9% 18.5% 1.8x 1.7x 7.7x 6.6xHewlett-Packard & Company 47,828.1 24.80 95.9% (7.1%) (0.2%) 0.5x 0.6x 4.4x 4.3x

Total Comp Set Median 128,235.4$ 89.1% 7.9% 18.5% 2.1x 2.2x 7.6x 7.0x



Bellwethers


8



Advertising & Marketing

Google Inc. 292,076.9$ 880.37$ 95.6% 19.2% 34.0% 4.6x 4.1x 14.7x 11.4xBaidu, Inc. 33,083.3 94.60 70.2% 33.5% 9.4% 7.7x 6.1x 14.3x 13.2xYahoo! Inc. 27,206.6 25.13 90.8% (8.5%) 25.8% 3.7x 4.0x 13.7x 11.0xYandex N.V. 9,096.4 27.65 65.8% 38.7% 45.2% 8.2x 6.7x 18.7x 14.9xGroupon, Inc. 5,656.3 8.55 81.4% 9.2% 96.7% 1.8x 1.7x 30.8x 14.7xAOL Inc. 2,825.4 36.48 83.0% 2.3% (7.3%) 1.1x 1.1x 5.1x 5.7xExactTarget, Inc. 2,348.5 33.72 99.9% 29.3% 35.0% 7.1x 5.9x NM NMValueClick, Inc. 1,883.2 24.71 76.6% 12.0% 25.4% 2.7x 2.5x 8.7x 7.3xBankrate, Inc. 1,436.7 14.36 73.0% (0.5%) (0.5%) 3.5x 3.4x 14.7x 13.6xResponsys, Inc. 706.4 14.31 94.8% 18.0% 44.5% 3.5x 3.1x 30.8x 21.5xMillennial Media Inc. 692.8 8.71 51.7% 54.4% NM 2.9x 2.0x NM 32.3x

Median 2,587.0$ 79.0% 18.6% 29.9% 3.6x 3.3x 14.7x 13.4x

Content Delivery & Management

Akamai Technologies, Inc. 7,561.1$ 42.55$ 87.8% 12.6% 32.4% 4.6x 4.2x 12.4x 9.8xLevel 3 Communications, Inc. 4,667.8 21.08 83.5% 0.3% 13.0% 2.0x 2.0x 8.8x 8.0xRovi Corporation 2,300.7 22.84 86.0% (0.8%) 26.8% 4.5x 4.4x 13.1x 9.5xMentor Graphics Corporation 2,206.5 19.55 98.0% 6.2% 28.0% 2.1x 1.9x 11.9x 8.1xEarthLink Inc. 640.0 6.21 81.5% (6.9%) (16.8%) 0.8x 0.8x 4.2x 4.7x

Median 2,300.7$ 86.0% 0.3% 26.8% 2.1x 2.0x 11.9x 8.1x

Content & Services

Facebook, Inc. 60,157.5$ 24.88$ 55.3% 32.5% 200.8% 9.6x 7.9x 40.4x 14.8xLinkedIn Corporation 19,677.9 178.30 87.9% 54.6% 186.4% 17.0x 12.5x NM 52.4xNetflix, Inc. 12,337.3 211.09 84.8% 20.2% 230.7% 3.2x 2.8x 92.4x 38.1xVeriSign, Inc. 6,732.3 44.66 89.1% 9.5% 18.9% 6.5x 6.1x 10.7x 9.7xIAC/InterActiveCorporation 3,983.4 47.58 85.6% 14.7% 49.8% 1.3x 1.2x 8.5x 6.1xPandora Media, Inc. 3,216.4 18.40 95.0% 48.2% NM 6.7x 5.0x NM NMAOL Inc. 2,825.4 36.48 83.0% 2.3% (7.3%) 1.1x 1.1x 5.1x 5.7xYelp, Inc. 2,240.6 34.77 96.2% 59.1% NM 13.7x 9.8x NM 94.4xZynga, Inc. 2,207.0 2.78 49.6% (26.2%) 0.3% 0.5x 0.7x 4.4x 11.1xZillow, Inc. 1,944.1 56.30 88.3% 56.8% 80.2% 13.1x 9.5x NM 78.1xAngie's List, Inc. 1,543.2 26.56 96.0% 58.4% NM 8.5x 6.1x NM NMWebMD Health Corp. 1,441.9 29.37 92.9% 1.4% 279.6% 2.6x 2.6x 30.7x 14.0xTrulia, Inc. 1,002.0 31.09 81.3% 64.3% NM 10.0x 7.1x NM 69.5xcomScore, Inc. 871.1 24.39 98.9% 10.4% 173.1% 3.1x 2.9x 42.5x 15.7xMonster Worldwide, Inc. 572.2 4.91 54.3% (6.5%) 9.1% 0.7x 0.7x 4.5x 3.9xDice Holdings, Inc. 551.4 9.21 88.3% 9.2% 7.8% 2.7x 2.5x 7.8x 7.0xDemand Media, Inc. 519.7 6.00 48.0% 12.2% 61.2% 1.0x 1.0x 5.8x 3.7x

Median 2,207.0$ 87.9% 14.7% 61.2% 3.2x 2.9x 8.5x 14.0x

Diversified Media

Walt Disney Company 113,729.4$ 63.15$ 93.0% 7.5% 18.6% 2.9x 2.7x 11.1x 9.8xComcast Corporation 109,945.1 41.75 95.5% 2.5% 5.8% 2.4x 2.3x 7.3x 7.0xTime Warner Inc. 53,898.3 57.82 93.7% 2.9% 2.2% 2.4x 2.3x 9.3x 9.3xViacom, Inc. 32,988.9 68.03 95.9% 5.5% 12.4% 3.1x 2.9x 10.7x 9.3xCBS Corporation 29,986.1 48.87 93.2% 6.0% 9.0% 2.5x 2.4x 10.0x 9.5xLiberty Interactive Corporation 12,195.3 23.01 94.7% 3.5% 9.3% 1.9x 1.9x 10.6x 10.2xScripps Networks Interactive, Inc. 9,838.8 66.76 94.0% 9.2% 7.4% 4.5x 4.3x 10.2x 9.6xGannett Co., Inc. 5,598.6 24.46 91.4% (1.7%) 0.2% 1.3x 1.3x 6.1x 6.2xMeredith Corporation 2,121.9 47.70 98.6% 1.4% (7.2%) 1.7x 1.7x 9.5x 10.0xThe New York Times Company 1,646.6 11.06 99.3% (1.3%) (6.7%) 0.7x 0.7x 5.1x 5.5x

Median 21,090.7$ 94.3% 3.2% 6.6% 2.4x 2.3x 9.8x 9.4x




9

e-Commerce

Amazon.com Inc. 126,416.4$ 277.69$ 97.5% 22.5% 97.7% 1.9x 1.6x 44.9x 24.5xeBay Inc. 67,121.7 51.72 89.1% 16.0% 33.1% 4.1x 3.6x 13.7x 10.8xpriceline.com Inc. 42,639.6 826.67 97.6% 25.1% 29.1% 7.1x 5.9x 19.7x 15.8xRakuten, Inc. 15,552.4 11.82 87.3% NA NA 3.2x NA 13.7x NAExpedia Inc. 8,128.8 60.15 88.3% 18.9% 34.9% 1.8x 1.6x 11.8x 8.7xMercadolibre, Inc. 4,757.9 107.76 83.9% 25.9% 22.3% 11.4x 9.5x 31.3x 26.4xCtrip.com International Ltd. 4,234.3 32.63 92.4% 23.2% 43.6% 4.8x 4.1x 28.9x 19.5xLive Nation Entertainment, Inc. 2,977.0 15.50 95.0% 3.4% 19.5% 0.6x 0.6x 8.6x 7.4xHomeAway, Inc. 2,746.9 32.34 94.3% 21.3% 95.9% 8.2x 7.1x 42.9x 24.4xShutterfly, Inc. 2,123.0 55.91 99.0% 20.4% 76.3% 2.9x 2.5x 23.5x 13.5xOpenTable, Inc. 1,457.0 63.95 88.6% 16.2% 76.2% 8.1x 7.2x 27.8x 16.8xVistaprint N.V. 1,611.6 49.37 98.7% 10.8% 35.9% 1.6x 1.5x 16.5x 12.4xLiquidity Services, Inc. 1,096.4 34.67 60.4% 8.3% 22.0% 2.1x 2.0x 10.9x 8.7xDemandware, Inc. 1,279.2 42.41 99.8% 25.0% NM 14.0x 11.8x NM NMOrbitz Worldwide, Inc. 846.8 8.03 91.8% 6.2% 31.6% 1.4x 1.3x 10.1x 7.7xStamps.com Inc. 608.5 39.39 98.5% 11.4% 36.7% 4.6x 4.3x 18.7x 15.6x

Median 2,861.9$ 93.3% 18.9% 35.4% 3.6x 3.6x 18.7x 14.6x

Total Internet and Digital Media Median 2,825.4$ 89.9% 11.4% 27.4% 3.1x 2.8x 11.8x 10.5x




(Continued)



Government IT & BPO

SAIC, Inc. 4,771.3$ 13.93$ 89.3% (7.2%) (14.6%) 0.5x 0.5x 6.3x 7.2xTyler Technologies, Inc. 2,159.6 68.55 97.2% 13.7% 17.0% 5.7x 5.2x 29.1x 26.6xCACI International Inc. 1,464.6 63.49 96.9% (3.6%) (5.5%) 0.6x 0.6x 6.3x 6.6xMAXIMUS, Inc. 1,271.9 37.24 91.5% 23.3% 33.9% 0.9x 0.8x 5.7x 5.0xManTech International Corporation 969.5 26.12 92.5% (1.6%) (19.5%) 0.4x 0.4x 5.0x 5.5x

Median 1,464.6$ 92.5% (1.6% ) (5.5% ) 0.6x 0.6x 6.3x 6.6x

IT Services

Accenture plc 46,403.3$ 71.96$ 85.4% 2.0% 10.4% 1.4x 1.4x 9.4x 8.7xCap Gemini S.A. 7,650.6 48.55 93.1% NA NA 0.5x NA 5.1x NAAtos S.A. 6,367.4 74.12 96.3% NA NA 0.5x NA 4.9x NASapient Corporation 1,823.9 13.06 96.1% 11.7% 36.0% 1.4x 1.3x 11.2x 8.4xTieto Oyj 1,388.6 18.99 79.3% NA NA 0.6x NA 5.1x NAEPAM Systems, Inc. 1,231.6 27.18 98.1% 24.5% 23.9% 2.4x 2.1x 13.7x 11.5xUnisys Corporation 974.1 22.07 89.2% (6.0%) 3.9% 0.2x 0.2x 2.7x 2.1x

Median 1,823.9$ 93.1% 6.8% 17.1% 0.6x 1.4x 5.1x 8.5x

Offshore BPOs

Tata Consultancy Services Ltd. 49,984.8$ 25.54$ 95.0% NA NA 4.1x NA 14.4x NAInfosys Technologies Ltd. 23,961.8 41.94 82.8% 1.1% (9.4%) 2.6x 2.7x 9.2x 9.9xCognizant Technology Solutions 18,893.2 62.64 77.3% 17.7% 16.7% 2.1x 1.9x 10.3x 9.1xWipro Ltd. 14,418.0 5.88 75.6% (3.9%) 3.7% 1.8x 1.9x 8.9x 8.9xHCL Technologies Ltd. 9,096.6 13.05 95.9% NA NA 1.9x NA 9.4x NAGenpact Ltd. 4,400.1 19.24 95.0% 15.0% 13.5% 2.4x 2.1x 13.0x 11.9xSyntel, Inc. 2,635.3 62.87 91.2% 11.0% 2.4% 3.0x 2.8x 9.6x 9.7xSatyam Computer Services Limited 2,419.1 2.05 93.1% NA NA 1.3x NA 6.4x NAExlservice Holdings, Inc. 964.5 29.56 89.7% 11.7% 15.3% 1.9x 1.7x 10.1x 9.0xWNS Holdings Ltd. 844.3 16.69 97.4% 2.0% 11.4% 1.8x 1.8x 10.7x 9.6x

Median 6,748.4$ 92.2% 11.0% 11.4% 2.0x 1.9x 9.9x 9.6x

Onshore BPOs

CGI Group, Inc. 9,030.1$ 29.23$ 93.1% 61.6% 71.3% 1.6x 1.2x 11.8x 8.4xAlliance Data Systems Corporation 8,904.1 181.03 97.7% 17.5% 23.4% 4.5x 4.0x 14.8x 12.6xComputer Sciences Corporation 6,511.7 43.77 86.5% (8.5%) 11.3% 0.5x 0.5x 3.6x 3.6xDST Systems Inc. 2,868.4 65.33 90.3% (24.7%) 17.5% 0.8x 1.1x 5.5x 4.8xConvergys Corporation 1,831.2 17.43 93.4% 2.6% 6.9% 0.6x 0.6x 5.5x 5.3x

Median 6,511.7$ 93.1% 2.6% 17.5% 0.8x 1.1x 5.5x 5.3x

Total IT Services Median 2,868.4$ 93.1% 2.6% 11.4% 1.4x 1.4x 9.2x 8.7x

IT and Tech-Enabled

Services


Software – Application

10



Customer Engagement/Call Center Management

Amdocs Limited 5,970.5$ 37.09$ 99.7% 3.8% 13.4% 1.5x 1.5x 8.2x 7.3xNuance Communications, Inc. 5,846.6 18.40 71.1% 14.5% 89.4% 4.0x 3.6x 19.3x 10.0xNICE Systems Ltd. 2,228.1 36.83 91.8% 8.4% 63.2% 1.9x 1.8x 11.4x 7.5xVerint Systems Inc. 1,869.5 35.47 95.9% 7.6% 35.0% 2.6x 2.4x 14.0x 10.1xComverse, Inc. 658.7 29.66 94.2% (7.2%) 73.5% 0.6x 0.6x 5.4x 5.4x

Median 2,228.1$ 94.2% 7.6% 63.2% 1.9x 1.8x 11.4x 7.5x

Enterprise Software

Oracle Corporation 142,212.1$ 30.71$ 84.3% 1.6% 6.7% 3.5x 3.4x 7.4x 7.0xSAP AG 87,098.9 73.04 86.5% 9.5% 10.7% 4.1x 3.8x 12.2x 11.1xAdobe Systems Inc. 22,883.0 45.56 96.6% (6.7%) (18.6%) 4.8x 5.0x 18.1x 17.1xSalesforce.com, Inc 22,523.7 38.18 80.2% 29.0% 668.1% 6.5x 5.4x NM 32.7xNetSuite Inc. 6,768.8 91.74 95.8% 32.0% NM 19.9x 16.2x NM NMSage Group plc 5,724.8 5.17 87.0% NA NA 2.9x NA 9.8x NAOpen Text Corporation 4,012.8 68.47 92.8% 10.9% 19.3% 3.1x 2.9x 10.6x 9.3xInformatica Corporation 3,780.6 34.98 80.4% 12.5% 34.2% 3.8x 3.5x 18.8x 13.2xManhattan Associates, Inc. 1,501.7 77.16 95.7% 9.7% 23.1% 3.7x 3.4x 15.9x 13.2xJive Software, Inc. 1,210.8 18.17 83.0% 32.5% NM 8.6x 7.0x NM NMMicroStrategy Inc. 982.7 86.96 63.4% (2.0%) (4.7%) 1.1x 1.1x 16.0x 13.7x

Median 5,724.8$ 86.5% 10.3% 15.0% 3.8x 3.6x 14.1x 13.2x

Human Capital Management

Workday, Inc. 11,087.6$ 64.09$ 91.9% 60.3% NM 33.4x 23.5x NM NMConcur Technologies, Inc. 4,543.5 81.38 95.9% 24.0% 179.0% 8.8x 7.4x NM 34.0xThe Ultimate Software Group, Inc. 3,242.6 117.29 98.9% 23.0% 39.0% 9.0x 7.8x 65.4x 55.1xCornerstone OnDemand, Inc. 2,209.7 43.30 93.8% 54.5% NM 16.3x 11.7x NM NM

Median 3,893.1$ 94.8% 39.3% 109.0% 12.6x 9.8x 65.4x 44.5x

Product Lifecycle Management/Engineering

Dassault Systemes SA 15,270.1$ 122.17$ 95.5% NA NA 5.1x NA 16.5x NAAutodesk, Inc. 7,629.7 33.94 81.9% 2.7% 42.1% 2.6x 2.5x 12.6x 8.7xAnsys, Inc. 6,813.4 73.10 89.6% 8.4% 16.8% 7.6x 7.2x 16.2x 14.0xSynopsys Inc. 5,497.1 35.75 96.6% 11.0% 68.3% 2.6x 2.5x 11.8x 8.4xCadence Design Systems Inc. 4,097.8 14.48 94.5% 10.3% 49.3% 2.7x 2.5x 11.6x 8.1xPTC Inc. 2,930.9 24.53 93.7% 5.2% 47.6% 2.4x 2.3x 12.5x 9.0xAspen Technology, Inc. 2,697.9 28.79 87.3% 20.9% 288.5% 8.5x 7.5x 61.7x 30.6xAveva Group plc 2,329.7 34.26 92.3% NA NA 6.1x NA 19.5x NAMentor Graphics Corporation 2,206.5 19.55 98.0% 6.2% 28.0% 2.1x 1.9x 11.9x 8.1x

Median 4,097.8$ 93.7% 8.4% 47.6% 2.7x 2.5x 12.6x 8.7x

Vertically Focused - Financial Technology

Intuit Inc. 18,124.3$ 61.04$ 89.2% 12.1% 38.6% 3.7x 3.5x 11.0x 9.1xJack Henry & Associates Inc. 4,058.5 47.13 97.7% 8.6% 14.6% 3.7x 3.4x 11.4x 10.3xBroadridge Financial Solutions, Inc. 3,222.2 26.58 94.8% 3.3% 30.0% 1.5x 1.5x 9.7x 7.8xSS&C Technologies Holdings, Inc. 2,752.9 32.90 95.5% 30.0% 35.8% 5.8x 5.1x 15.0x 12.6xFinancial Engines, Inc. 2,229.6 45.59 95.7% 26.0% 128.2% 10.3x 8.7x 55.5x 27.4xACI Worldwide, Inc. 1,852.2 46.48 89.6% 34.0% 56.9% 3.5x 2.7x 16.5x 9.8xAdvent Software, Inc. 1,801.8 35.06 99.0% 5.6% 17.5% 4.5x 4.3x 19.9x 18.4xBottomline Technologies (de), Inc. 909.6 25.29 84.8% 10.1% 129.1% 3.0x 2.9x 34.3x 14.7x

Median 2,491.2$ 95.2% 11.1% 37.2% 3.7x 3.5x 15.8x 11.5x

Vertically Focused - Healthcare IT

Cerner Corporation 8,257.9$ 48.05$ 96.1% 14.7% 36.4% 2.6x 2.3x 9.3x 7.1xathenahealth, Inc. 3,113.0 84.73 84.9% 41.5% 112.6% 7.0x 5.3x 72.8x 29.2xAllscripts Healthcare Solutions, Inc. 2,284.4 12.94 90.9% 0.5% 94.6% 1.9x 1.9x 26.0x 11.3xHMS Holdings Corp. 2,043.5 23.30 62.7% 6.6% 6.3% 4.6x 4.4x 14.7x 13.8xQuality Systems Inc. 1,114.2 18.71 66.3% 1.9% (1.8%) 2.2x 2.1x 9.9x 9.4xMedAssets, Inc. 1,080.8 17.74 88.7% 6.0% 12.9% 2.9x 2.9x 9.3x 8.8xComputer Programs & Systems Inc. 544.5 49.14 83.0% 9.5% 16.6% 2.8x 2.6x 11.6x 10.2x

Median 2,043.5$ 84.9% 6.6% 16.6% 2.8x 2.6x 11.6x 10.2x





Enterprise IT Management

Microsoft Corporation 288,489.0$ 34.55$ 96.5% 14.9% 20.0% 2.9x 2.6x 7.2x 6.3xHewlett-Packard Company 47,828.1 24.80 95.9% (7.1%) (0.2%) 0.5x 0.6x 4.4x 4.3xVMware, Inc. 28,683.6 66.99 65.0% 12.4% 75.9% 5.1x 4.7x 20.7x 11.9xCA Technologies 12,962.7 28.62 95.9% (3.8%) (0.3%) 2.5x 2.6x 6.9x 6.9xCitrix Systems, Inc. 11,294.8 60.36 70.5% 14.6% 54.3% 3.7x 3.3x 16.4x 10.5xRed Hat, Inc. 9,052.0 47.82 79.7% 15.4% 53.6% 5.7x 5.3x 28.2x 19.3xBMC Software Inc. 6,383.8 45.13 94.1% 2.9% 43.3% 2.8x 2.7x 10.1x 7.1xSplunk, Inc. 4,812.7 46.36 97.4% 37.5% NM 20.5x 16.4x NM NMTIBCO Software Inc. 3,512.4 21.41 65.0% 2.6% 27.0% 3.2x 3.2x 17.2x 12.2xCompuware Corporation 2,206.9 10.34 81.2% (0.3%) 4.7% 2.3x 2.2x 15.2x 12.5xProgress Software Corporation 1,268.7 23.01 93.9% (0.6%) 18.3% 2.9x 3.0x 14.0x 9.6xPegasystems Inc. 1,256.4 33.12 98.7% 9.2% 68.0% 2.3x 2.1x 18.8x 12.8x

Median 7,717.9$ 94.0% 6.0% 27.0% 2.9x 2.9x 15.2x 10.5x

Enterprise Storage

EMC Corporation 49,621.8$ 23.62$ 83.8% 7.9% 18.5% 1.8x 1.7x 7.7x 6.6xNetApp, Inc. 13,642.8 37.78 95.6% 4.0% 65.4% 1.4x 1.4x 10.8x 6.3xTeradata Corporation 8,207.6 50.23 62.0% 5.2% 22.4% 2.9x 2.7x 12.4x 9.4xCommVault Systems, Inc. 3,527.4 75.89 86.1% 18.0% 69.1% 6.2x 5.6x 36.0x 23.6xBrocade Communications Systems, Inc. 2,556.2 5.76 89.4% (4.5%) 6.2% 1.1x 1.1x 4.8x 4.6xFusion-io, Inc. 1,399.7 14.24 43.6% 5.0% NM 2.4x 2.3x NM NM

Median 5,867.5$ 85.0% 5.1% 22.4% 2.1x 2.0x 10.8x 6.6x

Security

Symantec Corporation 15,660.4$ 22.48$ 89.0% 1.0% 21.1% 2.0x 2.0x 7.4x 6.3xCheck Point Software Technologies Ltd. 9,758.9 49.68 93.7% 4.1% 7.2% 4.6x 4.5x 8.2x 7.6xVeriSign, Inc. 6,732.3 44.66 89.1% 9.5% 18.9% 6.5x 6.1x 10.7x 9.7xTrend Micro Inc. 4,185.8 31.74 91.4% NA NA 2.5x NA 7.5x NAFortinet Inc. 2,838.9 17.50 62.0% 12.4% 20.0% 3.7x 3.4x 18.8x 15.4xSourcefire, Inc. 1,726.8 55.55 93.4% 24.8% 203.6% 6.4x 5.4x 88.0x 27.3xImperva Inc. 1,104.3 45.04 99.1% 30.0% NM 8.9x 7.3x NM NM

Median 4,185.8$ 91.4% 10.9% 20.0% 4.6x 4.9x 9.4x 9.7x

Total Infrastructure Software Median 6,383.8$ 89.4% 6.5% 21.1% 2.9x 2.9x 11.6x 9.6x

11

Software – Application (Continued) Vertically Focused - Public Sector

Tyler Technologies, Inc. 2,159.6$ 68.55$ 97.2% 13.7% 17.0% 5.7x 5.2x 29.1x 26.6xBlackbaud Inc. 1,486.6 32.57 94.6% 12.0% 68.3% 3.6x 3.4x 23.5x 15.5xNIC Inc. 1,072.1 16.53 85.4% 14.3% 22.9% 4.5x 4.2x 18.1x 16.5xK12, Inc. 960.8 26.27 85.1% 16.9% 67.1% 1.1x 0.9x 10.7x 7.1xHigher One Holdings, Inc. 543.0 11.64 84.8% 12.1% (15.4%) 3.1x 2.7x 10.3x 11.4xMedian 1,072.1$ 85.4% 13.7% 22.9% 3.6x 3.4x 18.1x 15.5x

Total Application Software Median 2,752.9$ 91.9% 10.6% 35.4% 3.7x 3.4x 14.0x 10.7x



Software - Infrastructure



12

( $ in millions) Stock Price CY2013P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA


SaaS

Salesforce.com, Inc 22,523.7$ 38.18$ 80.2% 29.0% 668.1% 6.5x 5.4x NM 32.7xWorkday, Inc. 11,087.6 64.09 91.9% 60.3% NM 33.4x 23.5x NM NMNetSuite Inc. 6,768.8 91.74 95.8% 32.0% NM 19.9x 16.2x NM NMConcur Technologies, Inc. 4,543.5 81.38 95.9% 24.0% 179.0% 8.8x 7.4x NM 34.0xThe Ultimate Software Group, Inc. 3,242.6 117.29 98.9% 23.0% 39.0% 9.0x 7.8x 65.4x 55.1xathenahealth, Inc. 3,113.0 84.73 84.9% 41.5% 112.6% 7.0x 5.3x 72.8x 29.2xQlik Technologies, Inc. 2,460.1 28.27 90.2% 22.9% 194.1% 5.5x 4.7x NM 38.4xExactTarget, Inc. 2,348.5 33.72 99.9% 29.3% 35.0% 7.1x 5.9x NM NMFinancial Engines, Inc. 2,229.6 45.59 95.7% 26.0% 128.2% 10.3x 8.7x 55.5x 27.4xCornerstone OnDemand, Inc. 2,209.7 43.30 93.8% 54.5% NM 16.3x 11.7x NM NMDealertrack Technologies, Inc. 1,540.8 35.43 98.4% 17.8% 114.8% 3.5x 3.1x 25.2x 12.2xBlackbaud Inc. 1,486.6 32.57 94.6% 12.0% 68.3% 3.6x 3.4x 23.5x 15.5xOpenTable, Inc. 1,457.0 63.95 88.6% 16.2% 76.2% 8.1x 7.2x 27.8x 16.8xDemandware, Inc. 1,279.2 42.41 99.8% 25.0% NM 14.0x 11.8x NM NMJive Software, Inc. 1,210.8 18.17 83.0% 32.5% NM 8.6x 7.0x NM NMMedAssets, Inc. 1,080.8 17.74 88.7% 6.0% 12.9% 2.9x 2.9x 9.3x 8.8xSPS Commerce, Inc. 825.8 55.00 95.9% 30.2% 90.2% 8.9x 7.5x NM 59.1x

Total SaaS Median 2,229.6$ 94.6% 26.0% 101.4% 8.6x 7.2x 27.8x 29.2x

Software as a Service

(“SaaS”)



has received a strategic investment from


has been acquired by


has been recapitalized by



a subsidiary of












Selected HW&Co. TMT Transactions

13






a division of





has been recapitalized

http://www.helpsystems.com/

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. Investment banking services are provided by Harris Williams LLC and Harris Williams & Co. Ltd. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business. Harris Williams LLC is a registered broker-dealer and member of FINRA and SIPC. Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze, authorised and regulated by the Financial Conduct Authority. THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS. The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent. Copyright © 2013 Harris Williams & Co., all rights reserved.

1001 Haxall Point 9th Floor Richmond, VA 23219 USA Phone: +1 (804) 648-0072 Fax: +1 (804) 648-0073

Two International Place 24th Floor Boston, MA 02110 USA Phone: +1 (617) 482-7501 Fax: +1 (617) 482-7503

1900 East 9th Street 20th Floor Cleveland, OH 44114 USA Phone: +1 (216) 689-2400 Fax: +1 (216) 689-2401

63 Brook St London, W1K 4HS United Kingdom Phone: +44 (0) 20 7518 8900 Fax: +44 (0) 20 7526 2187

222 South Ninth Street Suite 3350 Minneapolis, MN 55402 USA Phone: +1 (612) 359-2700 Fax: +1 (612) 359-2701

1600 Market Street 21st Floor Philadelphia, PA 19103 USA Phone: +1 (267) 675-5900 Fax: +1 (267) 675-5901

575 Market Street 31st Floor San Francisco, CA 94105 USA Phone: +1 (415) 288-4260 Fax: +1 (415) 288-4269

www.harriswilliams.com

1. Capital IQ 2. MergerMarket

Sources

14

Thierry Monjauze Managing Director 63 Brook Street London W1K 4HS United Kingdom Phone: +44 (0) 20 7518 8901 [email protected]

Jeff Bistrong Managing Director Two International Place, 24th Floor Boston, MA 02110 USA Phone: +1 (617) 654-2102 [email protected]

Mike Wilkins Managing Director 575 Market Street, 31st Floor San Francisco, CA 94105 USA Phone: +1 (415) 217-3411 [email protected]

Contacts

An der Welle 4 60322 Frankfurt am Main Germany Phone: +49 69 7593 7166 Fax: +49 69 2557 7415




http://www.harriswilliams.com/

technology, media & telecom update july 2013 · selected hw&co. tmt transactions ......

Documents