the tech report - 2015 market reviews

The Tech Report2015 Market Reviews

2015 STRICTLY PRIVATE AND CONFIDENTIAL

2QUARTERLY TECH REPORT - 2015

Welcome to the Q3 edition of Results International’s Tech Report

Here at Results we cover all aspects of technology with a particular focus on enterprise software / SaaS, software-related IT services, and tech enabled services. However we like to turn our attention to a number of specific sectors at the end of every quarter to consider the trends and analyse the activity in the M&A, fundraising and public markets. We have produced our view on 2015’s proceedings in a series of individual market reviews on: • Digital Services• SaaS• HealthTech• Cybersecurity• AdTech & MarTech Following a turbulent stock market in Q3, public markets across all five technology sectors rebounded strongly in the fourth quarter to end the year on a high. For the full year, the SaaS sector remained the stand-out performer - Results International’s Global SaaS Index was up c.15%, outperforming the broader Nasdaq Composite’s c.6% gain in 2015. Nevertheless, the private markets in Cybersecurity and HealthTech witnessed record numbers of M&A transactions in 2015 whilst investor appetite and valuations continue to remain healthy across all five market sectors.

Companies displaying strong top-line growth with quality clients and an innovative products, within each of their sectors, continue to outperform their peers on the public markets. We hope you enjoy the document, and please do get in touch if you would like to discuss any of the themes with us. We look forward to speaking with you soon.

SECTION 1

Digital Services


4QUARTERLY TECH REPORT – 2015, YEAR IN REVIEW: DIGITAL SERVICES

About Results International

A MARKET-LEADING CORPORATE FINANCE ADVISORY FIRM… …WITH GLOBAL REACH

• 40 person team; 250+ completed transactions

• Broad global network

• Creative solutions

• Senior level focus on every transaction

• Founded in 1991

• Entrepreneurial and owner-managed

DEEP DOMAIN EXPERTISE IN THREE INTER-RELATED SECTORS… …AND BROAD INDUSTRY NETWORKS

Marketing

HealthcareTechnology

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Xnpv6mT1mXrNHM&tbnid=3pJvLIYwfhFInM:&ved=0CAUQjRw&url=http://my.opera.com/community/opera/buttons/&ei=NuDXUv-XB8am0QXpzoGIBw&bvm=bv.59568121,d.bGE&psig=AFQjCNE6m80XE3hdbm-4Akuss3EvthcY7Q&ust=1389965726223087

5

DIGITAL SERVICES

The Digital Services Spectrum

QUARTERLY TECH REPORT – 2015, YEAR IN REVIEW: DIGITAL SERVICES

The Results International Digital Services Ecosystem

The traditionally distinct sectors of IT / Consulting Services and Marketing Communications, included above, are converging at an ever increasing rate supported by transferable revenue and business models

6

80

85

90

95

100

105

110

115

120

Technology Consulting / Services Marketing Communications NASDAQ Composite IndexFTSE 100 Index


Results International Global Digital Services Indices

Dec-15Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15

Notes: Based on share prices as at 31st December 2015; indices weighted by market capitalisation Sources: Capital IQ and Results analysis

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Q4 2015 PERFORMANCE

Technology Consulting / Services (3.7%)

Marketing Communications 9.5%

(3.2%)

5.7%

7.8%

(4.9%)

7

IT / CONSULTING SERVICES MARKETING COMMUNICATIONS0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0% 9.2%

5.7%

IT / CONSULTING SERVICES MARKETING COMMUNICATIONS0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0% 15.1% 14.8%

IT / CONSULTING SERVICES MARKETING COMMUNICATIONS0.0 x0.2 x0.4 x0.6 x0.8 x1.0 x1.2 x1.4 x1.6 x1.8 x2.0 x 1.9 x

1.4 x

IT / CONSULTING SERVICES MARKETING COMMUNICATIONS0.0 x

2.0 x

4.0 x

6.0 x

8.0 x

10.0 x

12.0 x 11.4 x10.1 x


Digital Services: Valuation Benchmarks

Notes: EV = Enterprise Value; financials calendarised to December year end; median values reported; excludes negative multiples See Selected Publicly Traded Companies (Slides 10 & 11) for details of companies included in each categorySource: Capital IQ

REVENUE GROWTH (2015-16E) EV / REVENUE 2015E

EBITDA MARGIN 2015E EV / EBITDA 2015E


Data & Analytics: Selected Deals in 2015

DATE BUYER TARGET EV ($M) EV/REVENUE EV/EBITDA COMPANY DESCRIPTION TARGETLOCATION

Dec-15 Consumer research and data analytics companies 47.0 0.6x -

Experian Simmons and Hitwise; consumer research and behaviour measurement, and behavioural analytics respectively

Dec-15 Advanced Advertising Unit - - - Data analytics for advertising optimisation

Sep-15 - - - Online data marketing solutions provider

Sep-15 682.6 6.3x n.m. Content measurement and analytics for the entertainment industry

Aug-15 - - - Adobe data analytics and conversion rate optimisation

Aug-15 - - - Web site analysis solutions for digital marketers

Aug-15 - - - Digitally driven marketing & data intelligence

Jul-15 - - - Geomarketing analytics and campaign control

Jul-15 - - - Marketing measurement and consulting services for the food services and retail industries

Jul-15 - - - Web analytics and optimisation

Jul-15 - - - Data, predictive analytics, and marketing automation services

Jul-15 60.0 1.5x - Customer counting and statistics solutions for the retail and property markets

Jun-15 41.2 - - Integrated database marketing analytics

May-15 - - - Customer experience management and feedback analytics solutions

Apr-15 - - - Tech-enabled digital analytics

Feb-15 - - - Website and call tracking analytics

Feb-15 47.0 - - Database marketing services for the insurance industry

Feb-15 Internet Audience Measurement Business58.8 - - Kantar’s Scandinavian Internet Audience Measurement

businessesNote: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


Strategy, UX, Design & Build: Selected Deals in 2015


Oct-15 - - - User experience and design-focused mobile and social media application development

Oct-15 - - - UX, branded content and digital product design and development

Sep-15 - - - User and brand experience-focused mobile application development

Sep-15 - - - User interface design and software development

Aug-15 - - - User experience and digital design

Jul-15 - - - User experience strategy and design and mobile/web application development

Jul-15 - - - Digital strategy and user experience design

Jul-15 61.0(1) 3.1x 12.6x User experience strategy, interaction and design, and product innovation services

Jul-15 - - - User experience design and strategy, marketing and mobile/web application development

Jun-15 - - - User experience and interface design, and application development

Jun-15 6.1 1.0x(2) - User experience design and innovation

May-15 - - - User interface design

Apr-15 25.5 2.2x 5.4x User experience and design, and mobile / web application development

Apr-15 3.8 - - User interface and experience design, and mobile / web application design

Apr-15 - - - Creative strategy, user experience design and application development

Mar-15 - - - Mobile user experience and interface design

Feb-15 - - - User experience design and mobile / web application development

Jan-15 - - - User experience, website design and build, and digital marketing services UK

(1) Includes performance based portion payable over 3 years; (2) Based on acquirer approximation of annual revenueNote: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


Bespoke Software Development and Systems Integration: Selected Deals in 2015


Dec-15 - - - Systems integration, data and cyber security solutions for the global energy and chemical industries

Dec-15 77.7 0.8x - SAP ERP and Microsoft SharePoint systems integration and software development

Dec-15 - - - Salesforce-based software development and systems integration

Sep-15 120.0 3.0x - Workday systems integration

Sep-15 - - - Epic healthcare software systems integration, training, analytics and associated services

Sep-15 410.0 - - Salesforce, Google Applications and ServiceNow SaaS consulting, systems integration and management

Sep-15 - - - Custom web application development

Aug-15 - - - ServiceNow consultancy, integration and solutions

Jul-15 - - - Software integration, custom application development, digital strategy and design

Jul-15 50.6 1.2x 16.9x SAP enterprise software systems integration

Jul-15 Human Resources Service Delivery

- - - Workday and other cloud-based HR systems integration services

Jun-15 - - - Manufacturing software systems planning, design and integration

Jun-15 24.2 - - Salesforce consultancy and cloud solution management

Jun-15 - - - SAP Governance, Risk and Compliance systems design and integration

May-15 - - - Salesforce systems integration and custom application development

Mar-15 430.7 2.2x 19.6x Custom software development, service optimisation and programme management for government

Jan-15 780.0 2.1x 13.0x Software engineering and integration services

Jan-15 - - -Business advisory, systems integration and customised software development for the energy and utilities industries

Note: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


eCommerce: Selected Deals in 2015


Dec-15 - - - Omni-channel Hybris and Intershop systems integration and eCommerce consultancy

Nov-15 29.5 - - eCommerce and SCM / fulfilment systems integration

Aug-15 38.0 - - eCommerce systems integration and digital agency services

Jul-15 Open Resources - - - eCommerce web development

Jul-15 - - - eCommerce web development solutions for the automotive aftermarket industry

Jun-15 2.0 - - eCommerce platform integration, web design and application development

Jun-15 - - - Omni-channel eCommerce systems strategy and integration, and digital marketing

Jun-15 1.2 - - eCommerce systems integration, consulting and application design

Jun-15 - - - Retail strategy, eCommerce site design and systems integration

May-15 - - - eCommerce mobile site and application development

May-15 - - - Retail and eCommerce strategy, analytics and systems integration

May-15 388.7 3.1x n.m. International eCommerce services including fulfilment, marketing, and platform design and implementation

Apr-15 55.2 - - eCommerce big data analysis

Mar-15 - - - Invoicing and order management systems integration

Feb-15 - - - eCommerce and fulfilment platform integration and design

Feb-15 4.6 - - eCommerce strategy, integration, design and website optimisation

Feb-15 29.0 1.2x 11.7x eCommerce, ERP and CRM systems integration

Jan-15 - - - B2B eCommerce integration services



Enterprise Mobility & App Development: Selected Deals in 2015


Nov-15 - - - Software services business assets providing software and mobile application development services

Sep-15 - - - Mobile application development and integration

Sep-15 - - - Minority investment; IoT and mobile-focused software development and integration

Sep-15 - - - Enterprise software and application development

Aug-15 - - - Enterprise software, mobile application and eCommerce solutions

Aug-15 - - - Mobile and web application development

Aug-15 - - - Mobile cross-platform enterprise application development

Jul-15 - - - Software and mobile application development

Jul-15 - - - Mobile application development

Jul-15 - - - Mobile application and web design and development

Jul-15 4.7 Mobile, social, and web-based application development

Jun-15 - - - Mobile business application development

Jun-15 - - - Mobile application and web design and development

May-15 - - - Customer loyalty-focused mobile application development

Apr-15 6.7 Mobile business application development

Mar-15 - - - Mobile application development

Mar-15 37.0(1) 1.5x 9.1x Mobile application development and digital consulting

Feb-15 - - - Fitness mobile application development

(1) EV does not include earnout payable over three years Note: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

13

OPERATING METRICS VALUATION METRICSPRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE REV. GROWTH GROSS MARGIN REVENUE EBITDA

COMPANY (31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016IT / CONSULTING SERVICES

Accenture 104.50 95% 65,623 3,076 (2,543) 63,080 31,426 4.5% 32.0% 16.6% 16.8% 2.0 x 1.9 x 12.1 x 11.4 xCap Gemini 92.97 94% 16,021 6,235 (1,477) 14,544 12,927 9.5% 24.7% 11.7% 12.6% 1.1 x 1.0 x 9.7 x 8.1 xCapita 17.81 90% 11,803 721 2,882 14,685 7,139 7.5% 27.6% 15.2% 15.2% 2.1 x 1.9 x 13.5 x 12.6 xCGI Group 39.93 93% 13,139 220 1,314 14,452 7,472 3.0% 29.7% 17.5% 19.0% 1.9 x 1.9 x 11.0 x 9.9 xCognizant 60.02 86% 36,818 4,051 (3,101) 33,717 12,417 14.0% 40.2% 20.4% 20.6% 2.7 x 2.4 x 13.3 x 11.5 xCSC 32.68 45% 4,535 1,818 821 5,356 8,971 (17.0%) 24.1% 13.5% 17.9% 0.6 x 0.7 x 4.4 x 4.0 xDevoteam 36.38 97% 290 34 (17) 273 522 7.8% 7.2% 7.6% 8.2% 0.5 x 0.5 x 6.9 x 5.9 xGFI Informatique 9.04 98% 497 20 98 595 963 3.4% 9.1% 7.5% 7.7% 0.6 x 0.6 x 8.3 x 7.7 xGlobant 37.51 98% 1,330 73 (73) 1,257 251 20.5% 39.1% 14.6% 16.7% 5.0 x 4.2 x 34.4 x 24.9 xIndra Sistemas 9.42 75% 1,543 301 923 2,466 3,174 0.1% 21.8% 4.1% 8.7% 0.8 x 0.8 x 18.8 x 8.9 xInfosys 16.69 91% 38,151 4,655 (4,655) 33,496 9,150 10.5% 33.9% 27.6% 27.7% 3.7 x 3.3 x 13.3 x 11.9 xIBM 137.62 78% 133,578 9,568 30,249 163,827 81,818 (2.3%) 50.0% 26.2% 26.8% 2.0 x 2.0 x 7.6 x 7.6 xKainos 3.80 86% 449 14 (14) 435 107 9.4% 53.0% 19.2% 19.3% 4.1 x 3.7 x 21.1 x 19.3 xMindTree 21.69 89% 1,823 76 (76) 1,747 650 19.0% 35.2% 18.6% 18.7% 2.7 x 2.3 x 14.4 x 12.1 xPerficient 17.12 79% 605 9 52 657 467 6.9% 34.0% 15.1% 17.0% 1.4 x 1.3 x 9.3 x 7.7 xPFSWeb 12.87 78% 245 13 25 270 284 12.1% 20.9% 6.9% 7.7% 1.0 x 0.8 x 13.8 x 11.0 xReply 136.74 97% 1,279 85 (23) 1,256 763 9.2% 16.2% 13.8% 14.0% 1.6 x 1.5 x 11.9 x 10.8 xSopra Steria Group 117.62 95% 2,334 249 710 3,043 3,895 4.9% 14.0% 8.1% 8.9% 0.8 x 0.7 x 9.7 x 8.3 xSyntel 45.25 85% 3,796 980 (848) 2,948 969 9.3% 41.4% 30.5% 30.8% 3.0 x 2.8 x 10.0 x 9.0 xTata Consultancy Services 36.80 87% 72,505 3,200 (3,108) 69,396 15,883 13.2% 34.8% 27.8% 28.5% 4.4 x 3.9 x 15.7 x 13.5 xTech Mahindra 7.88 70% 7,834 527 (382) 7,453 3,863 13.6% 31.0% 16.9% 17.3% 1.9 x 1.7 x 11.4 x 9.8 xTieto 26.85 99% 1,982 126 73 2,055 1,585 2.3% 30.2% 13.2% 14.5% 1.3 x 1.3 x 9.8 x 8.8 xUnisys 11.05 37% 552 293 36 588 3,027 (1.6%) 23.2% 4.8% 1.7% 0.2 x 0.2 x 4.0 x 11.7 xVirtusa Corporation 41.34 70% 1,255 179 (179) 1,076 586 31.0% 36.5% 12.5% 10.8% 1.8 x 1.4 x 14.7 x 13.0 xWipro 8.45 83% 20,832 4,288 (2,759) 18,073 7,548 9.2% 30.2% 22.3% 22.4% 2.4 x 2.2 x 10.7 x 9.8 x 25th percentile 3.4% 23.2% 11.7% 10.8% 1.0 x 0.8 x 9.7 x 8.3 xMedian 9.2% 30.2% 15.1% 16.8% 1.9 x 1.7 x 11.4 x 9.9 x75th percentile 12.1% 35.2% 19.2% 19.3% 2.7 x 2.3 x 13.8 x 11.9 x

EBITDA MARGIN


IT / Consulting Services: Selected Publicly Traded Companies

Note: Calendarised to December year end; $ millions, except share price data; Net debt includes minority interest Source: Capital IQ

14


COMPANY (31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

MARKETING COMMUNICATIONS

BlueFocus Communication Group 2.27 58% 4,381 500 413 4,794 1,344 32.7% 31.8% 18.2% 15.9% 3.6 x 2.7 x 19.6 x 16.9 xCACI International 92.78 89% 2,251 29 982 3,233 3,385 5.8% 32.8% 9.2% 9.4% 1.0 x 0.9 x 10.4 x 9.6 xCheil Worldwide 17.60 81% 1,903 349 (311) 1,593 805 10.1% 99.6% 19.0% 19.5% 2.0 x 1.8 x 10.4 x 9.2 xCello Group Plc 1.30 82% 115 2 15 130 125 3.4% 100.0% 14.0% 14.1% 1.0 x 1.0 x 7.4 x 7.1 xCommunisis plc 0.60 65% 129 38 51 179 533 3.9% 45.2% 8.5% 8.7% 0.3 x 0.3 x 4.0 x 3.7 xCreston plc 1.84 77% 107 1 4 111 122 5.6% 34.7% 15.4% 15.9% 0.9 x 0.9 x 5.9 x 5.4 xDentsu 55.58 92% 15,847 2,110 1,236 17,084 5,467 26.3% 58.4% 21.6% 22.7% 3.1 x 2.5 x 14.5 x 10.9 xEbiquity plc 2.06 89% 165 14 40 205 117 3.4% 56.2% 18.4% 19.5% 1.8 x 1.7 x 9.6 x 8.7 xHakuhodo 10.97 90% 4,090 1,090 (858) 3,232 1,737 2.5% n.a. 19.7% 20.0% 1.9 x 1.8 x 9.4 x 9.1 xHavas 8.42 91% 3,517 203 160 3,676 2,338 6.5% 38.9% 16.6% 16.9% 1.6 x 1.5 x 9.5 x 8.7 xInnocean Worldwide 59.50 92% 1,190 255 (255) 935 810 12.5% n.a. 9.9% 10.8% 1.2 x 1.0 x 11.6 x 9.5 xM&C Saatchi plc 4.81 83% 361 38 6 367 268 5.7% 32.9% 11.8% 12.4% 1.4 x 1.3 x 11.6 x 10.5 xMDC Partners 21.72 76% 1,106 16 963 2,069 1,328 7.7% 34.7% 14.9% 15.9% 1.6 x 1.4 x 10.4 x 9.1 xNext Fifteen Communications Group plc 3.56 87% 251 16 12 264 184 9.6% 31.9% 13.9% 14.6% 1.4 x 1.3 x 10.3 x 9.0 xOmnicom Group 75.66 93% 18,408 1,430 3,805 22,213 15,167 4.3% 25.9% 14.6% 14.6% 1.5 x 1.4 x 10.0 x 9.6 xPorta Communications Plc 0.10 65% 29 3 11 40 52 4.1% 83.4% 7.7% 8.6% 0.8 x 0.7 x 10.0 x 8.7 xPublicis Groupe 66.66 77% 13,958 1,184 3,178 17,136 10,314 4.8% 38.7% 17.5% 17.8% 1.7 x 1.6 x 9.5 x 8.9 xSt Ives 3.30 98% 447 24 93 540 523 5.6% 32.6% 13.1% 12.8% 1.0 x 1.0 x 7.9 x 7.6 xThe Interpublic Group of Companies 23.28 98% 9,560 881 1,125 10,685 7,607 3.7% 36.0% 13.6% 14.0% 1.4 x 1.4 x 10.3 x 9.6 xThe Mission Marketing Group plc 0.63 86% 55 4 13 67 89 13.6% 99.9% 15.0% 14.3% 0.8 x 0.7 x 5.1 x 4.7 xValtech 12.60 99% 344 25 (23) 321 192 9.9% 33.6% 7.9% 9.4% 1.7 x 1.5 x 21.2 x 16.2 xWPP 23.05 97% 30,269 1,997 5,488 35,757 17,953 5.6% 87.3% 16.5% 16.5% 2.0 x 1.9 x 12.1 x 11.4 x 25th percentile 4.1% 32.9% 12.1% 12.5% 1.0 x 1.0 x 9.4 x 8.7 xMedian 5.7% 37.4% 14.8% 14.6% 1.4 x 1.4 x 10.1 x 9.1 x75th percentile 9.8% 64.6% 17.3% 16.8% 1.7 x 1.7 x 11.3 x 9.6 x

EBITDA MARGIN


Marketing Communications: Selected Publicly Traded Companies

Note: Calendarised to December year end; $ millions, except share price data; Net debt includes minority interest Source: Capital IQ


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SECTION 2

SaaS


17QUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: SAAS







• Founded in 1991



Marketing



http://www.covance.com/index.php

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=c0RRud0PBBv66M&tbnid=_v7sGUY1JN5xDM:&ved=0CAUQjRw&url=http://weijiblog.com/2010/03/42-merck/&ei=sEjUUdHsIcSJhQfd_ICgDw&bvm=bv.48705608,d.ZG4&psig=AFQjCNH22HylAPJvqj1KeOfdNdZOwjzjUQ&ust=1372953090294243

18

90

100

110

120

130

140

Large Cap Mid Cap Small Cap Global SaaS Index NASDAQ COMP

Results International Global SaaS Indices


Notes: Based on share prices as at 31st December 2015; indices weighted by market capitalisationSources: Capital IQ and Results analysis

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17.5%

14.2%

4.6%5.7%5.1%

Q4 2015 PERFORMANCELarge Cap 9.6%Mid Cap 10.2%Small Cap 12.8%Global SaaS 9.9%

QUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: SAAS

19

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

20.7%

1.5% 0.9%

12.9%

24.6%

9.2%

15.7%20.6%

4.4%9.4%

23.2%

4.6%

17.1%

35.1%

1.0% 3.5%

(9.5%) (10.7%)

(1.6%)

Global SaaS Universe: Large & Mid Cap Share Price Performance

Note: Based on share prices as at 31st December 2015Sources: Capital IQ and Results analysis

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201

5

LARGE CAP MID CAP

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

10.5% 7.1%

(22.5%)

32.2% 27.6%33.2%

(2.4%)

(20.3%)

(6.2%)

(23.8%)

9.2%

(1.9%)

3.2% 2.2%

(12.3%)

43.1%49.4%

(52.1%)

36.0%


20

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

10.8%

(35.8%)

25.4% 30.9%

(32.3%)

(2.0%)

(45.5%)

22.6%

67.5%

(24.2%)

(57.7%)

(12.3%) (10.2%)

24.0%

67.5%

(15.9%)

6.2%

Global SaaS Universe: Small Cap Share Price Performance

(1) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stock’s respective IPO dates and the 31 st December 2015

Note: Based on share prices as at 31st December 2015Sources: Capital IQ and Results analysis

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5

SMALL CAP

(1)

(1)

(1)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

16.4%

39.3%

3.7%

(3.2%)

(12.6%)

9.4%

(2.9%)

32.0%

21.4%

(16.5%)

14.4% 16.3%

29.7%

3.4%

17.5%

(15.9%)

4.1%


21

Global SaaS: Valuation Benchmarks

(1) Global SaaS represents the median of all stocks in Large Cap, Mid Cap and Small Cap, with no weighting appliedNotes: EV = Enterprise Value; financials calendarised to December year end; median values reportedSee Selected Publicly Traded Companies (slides 6 and 7) for details of companies included in each categorySources: Capital IQ and analyst reports



Large Cap Mid Cap Small Cap Global SaaS0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

23.0%

20.1%22.8% 22.2%

Large Cap Mid Cap Small Cap Global SaaS0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x

35.0 x

40.0 x 37.7 x

20.0 x

26.9 x24.8 x

Large Cap Mid Cap Small Cap Global SaaS0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

9.0 x

10.0 x9.1 x

5.8 x

3.3 x

5.9 x

Large Cap Mid Cap Small Cap Global SaaS

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

17.3%19.5%

-3.2%

13.2%


22

OPERATING METRICS VALUATION METRICSPRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE SUBSCRIPTION REV. GROWTH GROSS MARGIN EBITDA MARGIN REVENUE EBITDA

COMPANY (31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 HISTORICAL CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

LARGE CAP

salesforce.com, inc. 78.40 94.6% 53,060 1,358 706 53,766 6,543 93.9% 21.7% 76.0% 17.3% 20.2% 8.2 x 6.8 x 47.5 x 33.4 xSolera Holdings Inc. 54.83 96.7% 3,704 495 2,729 6,433 1,206 n.a 8.9% 68.3% 45.0% 38.9% 5.3 x 4.9 x 14.3 x 12.6 xWorkday, Inc. 79.68 83.7% 16,786 1,896 (1,388) 15,397 1,128 75.5% 34.4% 66.4% 5.0% 7.5% 13.7 x 10.2 x n.m. n.m.ServiceNow, Inc. 86.56 94.8% 14,949 729 (262) 14,687 1,001 82.4% 36.9% 63.6% 15.3% 18.1% 14.7 x 10.7 x 95.6 x 59.1 xathenahealth, Inc. 160.97 94.5% 6,428 118 182 6,610 925 94.7% 19.9% 59.8% 19.4% 20.7% 7.1 x 6.0 x 36.9 x 28.8 xNetSuite Inc. 84.62 77.0% 6,788 372 (90) 6,698 739 80.5% 29.9% 68.2% 7.2% 7.6% 9.1 x 7.0 x n.m. 91.3 xThe Ultimate Software Group, Inc. 195.51 90.4% 5,724 129 (121) 5,604 617 81.5% 23.0% 59.8% 24.1% 24.9% 9.1 x 7.4 x 37.7 x 29.6 x 25th percentile 87.1% 832 80.8% 20.8% 61.7% 11.3% 12.9% 7.7 x 6.4 x 36.9 x 29.0 xMedian 94.5% 1,001 82.0% 23.0% 66.4% 17.3% 20.2% 9.1 x 7.0 x 37.7 x 31.5 x75th percentile 94.7% 1,167 91.0% 32.1% 68.3% 21.7% 22.8% 11.4 x 8.8 x 47.5 x 52.7 x

MID CAP

RealPage, Inc. 22.45 93.6% 1,780 19 25 1,805 466 96.1% 12.4% 56.8% 19.4% 20.0% 3.9 x 3.4 x 20.0 x 17.2 xMedidata Solutions, Inc. 49.29 80.4% 2,800 287 (38) 2,762 399 82.3% 18.9% 74.7% 22.9% 24.6% 6.9 x 5.8 x 30.3 x 23.7 xVeeva Systems Inc. 28.85 85.7% 4,421 339 (339) 4,081 398 69.8% 25.7% 60.7% 28.2% 29.4% 10.3 x 8.2 x 36.4 x 27.7 xConstant Contact, Inc. 29.24 67.7% 981 181 (181) 801 369 n.a 13.9% 72.5% 19.7% 21.9% 2.2 x 1.9 x 11.0 x 8.7 xCornerstone OnDemand, Inc. 34.53 84.8% 1,915 214 16 1,932 342 n.a 28.2% 70.5% 1.4% 8.5% 5.6 x 4.4 x n.m. 51.7 xFleetmatics Group PLC 50.79 80.8% 1,998 189 (162) 1,836 285 n.a 20.8% 75.2% 32.3% 33.3% 6.4 x 5.3 x 20.0 x 16.0 xIntraLinks Holdings, Inc. 9.07 70.9% 539 57 21 560 275 n.a 6.6% 72.9% 14.4% 15.1% 2.0 x 1.9 x 14.2 x 12.6 xLogMeIn, Inc. 67.10 89.0% 1,734 246 (246) 1,488 270 n.a 19.4% 89.6% 25.1% 24.1% 5.5 x 4.6 x 21.9 x 19.1 xEllie Mae, Inc. 60.23 72.6% 1,927 110 (105) 1,821 250 n.a 22.2% 71.4% 26.2% 27.2% 7.3 x 6.0 x 27.7 x 21.9 xLivePerson Inc. 6.75 47.3% 387 41 (41) 346 239 n.a 9.1% 74.9% 8.9% 10.3% 1.4 x 1.3 x 16.2 x 12.8 xDemandware, Inc. 53.97 71.1% 2,132 183 (183) 1,949 234 92.3% 28.7% 73.8% 7.8% 8.2% 8.3 x 6.5 x n.m. 79.3 xMarketo, Inc. 28.71 80.6% 1,336 113 (106) 1,230 210 90.2% 32.1% 62.7% (8.7%) (5.3%) 5.9 x 4.4 x n.m. n.m.

25th percentile 71.0% 248 82.3% 13.5% 68.6% 8.6% 9.9% 3.4 x 3.1 x 16.2 x 14.4 xMedian 80.5% 280 90.2% 20.1% 72.7% 19.5% 20.9% 5.8 x 4.5 x 20.0 x 19.1 x75th percentile 85.1% 376 92.3% 26.3% 74.7% 25.4% 25.2% 7.0 x 5.9 x 27.7 x 25.7 x

Global SaaS: Selected Publicly Traded Companies

Note: Based on share prices as at 31st December 2015Note: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 100x EV / EBITDA; Net debt includes minority interest Note: Market cap classifications categorised by CY2015E revenue:

• Large Cap: Revenues greater than $500m• Mid Cap: Revenues between $200m and $500m• Small Cap: Revenues less than $200m

Sources: Capital IQ and Results analysis


23

OPERATING METRICS VALUATION METRICSPRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE SUBSCRIPTION REV. GROWTH GROSS MARGIN EBITDA MARGIN REVENUE EBITDA

COMPANY (31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 HISTORICAL CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

SMALL CAP

Bazaarvoice, Inc. 4.38 46.6% 353 110 (53) 300 196 88.7% 8.4% 68.2% (3.5%) 3.9% 1.5 x 1.4 x n.m. 35.8 xJ ive Software, Inc. 4.08 64.5% 310 111 (107) 203 195 88.7% 6.3% 68.2% 3.1% 4.7% 1.0 x 1.0 x 33.4 x 20.6 xCvent, Inc. 34.91 93.7% 1,557 159 (159) 1,398 187 90.2% 23.6% 70.2% 12.8% 10.8% 7.5 x 6.0 x 58.4 x 56.0 xBenefitfocus, Inc. 36.39 76.6% 1,130 85 (34) 1,096 183 93.3% 25.4% 36.3% (19.4%) (10.4%) 6.0 x 4.8 x n.m. n.m.HubSpot, Inc. 56.31 93.7% 2,134 105 (104) 2,030 179 58.4% 33.7% 68.0% (13.6%) (8.8%) 11.3 x 8.5 x n.m. n.m.Qualys, Inc. 33.09 59.7% 1,285 174 (174) 1,111 164 n.a 22.8% 77.2% 33.0% 32.7% 6.8 x 5.5 x 20.5 x 16.8 xSPS Commerce, Inc. 70.21 89.7% 1,215 123 (123) 1,092 158 n.a 23.0% 68.7% 13.8% 13.7% 6.9 x 5.6 x 49.9 x 40.9 xXero Limited. 13.57 74.7% 1,841 154 (154) 1,687 129 94.9% 56.6% 65.7% (35.4%) (17.0%) 13.1 x 8.3 x n.m. n.m.Marin Software Incorporated 3.58 41.5% 133 33 (30) 103 107 n.a 5.7% 64.2% (10.4%) 0.1% 1.0 x 0.9 x n.m. n.m.SciQuest, Inc. 12.97 71.0% 361 136 (136) 225 105 n.a 6.5% 69.1% 18.8% 19.9% 2.1 x 2.0 x 11.4 x 10.1 xMINDBODY, Inc. 15.13 82.3% 632 317 (301) 331 101 58.0% 32.5% 57.1% (21.3%) (14.3%) 3.3 x 2.5 x n.m. n.m.ChannelAdvisor Corporation 13.85 62.4% 355 59 (57) 298 98 n.a 15.6% 71.5% (3.2%) 0.3% 3.1 x 2.6 x n.m. n.m.Textura Corporation 21.58 69.1% 575 73 (73) 502 93 n.a 30.5% 79.6% 13.2% 19.8% 5.4 x 4.1 x 40.7 x 20.8 xXactly Corporation 8.53 79.9% 274 169 (153) 121 74 77.4% 23.6% 59.0% (17.0%) (11.3%) 1.6 x 1.3 x n.m. n.m.Craneware plc 11.76 94.9% 320 42 (42) 278 48 86.7% 10.9% 94.6% 30.6% 31.0% 5.9 x 5.3 x 19.1 x 17.0 xHalogen Software Inc. 5.15 64.1% 113 40 (40) 74 47 87.7% 12.8% 71.8% (5.9%) (6.1%) 1.1 x 1.0 x n.m. n.m.StatPro Group plc 1.14 87.5% 77 3 (3) 74 46 n.a. 3.7% n.a. 13.1% 14.2% 1.6 x 1.5 x 12.2 x 10.9 x25th percentile 64.1% 93 79.7% 8.4% 65.3% (13.6%) (8.8%) 1.6 x 1.4 x 17.4 x 16.8 xMedian 74.7% 107 88.2% 22.8% 68.5% (3.2%) 3.9% 3.3 x 2.6 x 26.9 x 20.6 x75th percentile 87.5% 179 89.8% 25.4% 71.6% 13.2% 14.2% 6.8 x 5.5 x 43.0 x 35.8 x

Note: Based on share prices as at 31st December 2015Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 100x EV / EBITDA; Net debt includes minority interest Note: Market cap classifications categorised by CY2015E revenue:

• Large Cap: Revenues greater than $500m• Mid Cap: Revenues between $200m and $500m• Small Cap: Revenues less than $200m

Sources: Capital IQ and Results analysis

Global SaaS: Selected Publicly Traded Companies (Cont.)


24

Contact Us


Mark WilliamsDIRECTOR – LONDON







Chris LewisPARTNER – LONDON


















































SECTION 3

HealthTech Heartbeat


26QUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: HEALTHTECH







• Founded in 1991



Marketing


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27

80

90

100

110

120

130

140

Healthcare IT - Europe Healthcare IT - US Biopharma IT Generalists NASDAQ Comp FTSE 100

QUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: HEALTHTECH

Results International Global HealthTech Indices


(1) Excludes GeneralistsNotes: Based on share prices as at 31st December 2015; indices weighted by market capitalisation; Healthcare IT – US excludes McKesson because the majority of its revenue is generated from pharmaceutical distributionSources: Capital IQ and Results analysis

LAST

12

MON

TH S

HARE

PRI

CE P

ERFO

RMAN

CE

Q4 2015 PERFORMANCEHealthcare IT - Europe 5.8%

Healthcare IT - US 1.1%Biopharma IT 20.6%Generalists 6.8%HealthTech(1) 3.3%

(6.1%)

31.5%

5.7%

(7.6%)

6.9%

(4.9%)

28

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0% 70.3%

9.7%

30.8%

12.2%

46.8%

67.5%

(5.0%) (6.9%)(0.7%)

20.4%10.5%

56.6%

3.4%

(37.0%)(25.4%)

(18.1%)

(35.8%) (37.0%)

(63.5%)

9.2% 3.2%

69.8%

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

14.9%

(11.1%)

8.4%3.8%

9.3%17.5%

6.6%0.4%

(12.5%)

24.0% 20.7%

54.2%

29.2%

(18.4%)

0.9%

18.1%

(24.1%)(19.4%)

1.7%

23.2%17.1% 17.5%


HealthTech: Share Price Performance

(1) Last 12 months reference dates adjusted to first trading day post IPO for Teladoc (01-Jul-15), Evolent Health (05-Jun-15) and Inovalon Holdings (12-Feb-15) Note: Share price performance as at 31st December 2015Sources: Capital IQ and Results analysis

LAST

12

MON

THS

Q4 2

015

HEALTHCARE IT - EUROPE HEALTHCARE IT - US BIOPHARMA IT

(1)(1)(1)


HealthTech: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTION RAISE

D ($M)INDICATIVE PRICE

RANGE ($)IPO LISTING

PRICE ($)INCREASE VS. RANGE

DAY 1 INCREASE

CURRENT INCREASE(1)

CURRENT EV ($M)

EV / REVENUE

2015EEV / EBITDA

2015E

NYSEJun-15 Video telemedicine platform

for medical consultations 156.8 15.00-17.00 19.00 18.8% 50% (5.5%) 566 7.4x n.m.(2)

NYSEJun-15 Healthcare delivery and

payments software 195.5 14.00-16.00 17.00 13.3% 10.9% (28.8%) 794 4.9x n.m.(3)

NasdaqGSFeb-15 Cloud-based healthcare data

analytics software 600.0 24.00-26.00 27.00 8.0% 0.0% (37.0%) 2,136 4.8x 13.9x

NYSEApr-14 Healthcare information

technology and services 1,300.0 18.00-21.00 20.00 2.5% 15.0% 27.4% 12,263 4.2x 13.9x

NYSEMar-14 Healthcare enterprise

management software 177.6 13.00-15.00 16.00 14.3% 148.8% (73.3%) 257 3.4x n.m.(4)

LSEDec-13

Software, hardware and services for the healthcare and energy sectors

199.7 n.a. 2.93 n.a. 20.1% 67.7% 333 3.4x 14.0x

NYSEOct-13 Cloud-based CRM software

for the biopharma industry 260.9 16.00-18.00 20.00 17.6% 85.8% 44.3% 3,497 8.8x 31.2x

(1) Current increase from IPO price; Market data as of 31st December 2015(2) Teladoc projecting negative EBITDA for CY2015(3) Evolent Health projecting negative EBITDA for CY2015(4) Castlight projecting negative EBITDA for CY2015 Note: Calendarised to December year end; $ millions, except share price dataSource: Capital IQ

30

Generalists Healthcare IT - Europe

Healthcare IT - US Biopharma IT0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0% 27.9%

22.5%

17.7%

22.9%


Healthcare IT - US Biopharma IT0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x

35.0 x

11.0 x14.1 x 13.9 x

29.5 x


Healthcare IT - US Biopharma IT0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

3.8 x 3.6 x 3.8 x

6.8 x


Healthcare IT - US Biopharma IT0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%20.0%

3.5%

7.4%

16.1%

18.9%


HealthTech: Valuation Benchmarks

Notes: EV = Enterprise Value; financials calendarised to December year end; median values reported; excludes negative multiples; McKesson excluded from above analysis because majority of revenue is generated from pharmaceutical distribution See Selected Publicly Traded Companies (Slide 11) for details of companies included in each categorySource: Capital IQ



31

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

0

10

20

30

40

50

60

70

80

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2117

20

3229

18

28 27 2832

44

61

5449

70

56

43

5

11

7

27 5

6

2

812

5

5

2

Healthcare IT Biopharma ITHealthcare IT Total Disclosed Deal Value Biopharma IT Total Disclosed Deal Value

NUM

BER

OF D

EALS

TOTA

L DIS

CLOS

ED D

EAL

VALU

E ($

M)


HealthTech: Global M&A Activity Q1 2012 – Q4 2015

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


HealthTech: Selected Deals in 2015


Dec-15 71.5 - - Hospital information system and medical imaging software

Dec-15 13.1 - - Hospital insurance claims management software

Dec-15 - - - Clinical databases and data management services

Nov-15 250.0 - - Electronic health records and clinical information management solutions

Nov-15 2,779.2 3.6x 13.0x Revenue and clinical resource management software and services

Oct-15 190.0 - - Mobile Electronic Health Record software

Oct-15 275.0 1.5x 13.8x Pharmacy automation software and hardware

Oct-15 48.0 - - Clinical process and connectivity solutions

Oct-15 261.1 4.6x 16.3x Laboratory information management systems

Sep-15 120.0 - - SaaS-based biopharma marketing compliance software

Sep-15 - - - Mobile clinical assessment and patient flow management systems

Sep-15 - - - Mobile workflow management software for the healthcare, government and industrial sectors

Sep-15 - - - Cloud-based financial performance analytics for healthcare

Aug-15 11.7 2.0x - Clinical patient flow and compliance education software

Aug-15 140.0 3.0x - Data-driven advisory services and BI systems for the life sciences industry

Aug-15 150.0 3.8x - Mobile medical education platform for physicians

Aug-15 65.0 - - Financial management software for hospitals

Aug-15 903.9 4.0x 20.7x Medical image management systems



HealthTech: Selected Deals in 2015


Jul-15 - - - Laboratory information system middleware

Jul-15 4.7 - - Primary and secondary care administration and compliance software

Jul-15 910.0 - - Cloud-based healthcare data analytics platform and engagement solutions

Jul-15 - - - Clinical decision support software

Jun-15 - - - Nurse and doctor scheduling automation software

May-15 1.9 - - Customer-driven healthcare and reimbursement accounts software and services

May-15 - - - Patient flow and bed management software

Apr-15 24.1 - - Venous biometric patient identification systems

Apr-15 - - - Cloud-based healthcare intelligence software

Apr-15 - - - Cloud-based population health data management software

Mar-15 - - - Healthcare analytics and performance benchmarking software

Mar-15 81.4 1.8x 15.0x(1) Practice management, communication and electronic patient record software

Mar-15 Key Opinion Leader Solutions Assets

- - - Key Opinion Leader campaign optimisation software and services for the biopharma industry

Jan-15 140.0 - - Cloud-based analytics, decision support and financial planning software for the healthcare industry

Jan-15 40.0 - - Cloud-based electronic health record and financial software for rural and community hospitals

Jan-15 65.0 - - Genomic analysis and bioinformatics software

Jan-15 - - - Electronic Clinical Outcome Assessments solutions for clinical trials

Jan-15 37.0 - - Medical imaging software

(1) Multiple quoted directly in seller press releaseNote: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis


HealthTech: Selected European Fundraisings in 2015

Sources: Press releases, Capital IQ and Results analysis

DATE COMPANY TYPE OF ROUND

FUNDS RAISED

($M)INVESTOR PARTICIPATION COMPANY DESCRIPTION COMPANY

LOCATION

Dec-15 - - Holosfind Patient recruitment application for clinical trials

Dec-15 Venture 5.0 - Online medical appointment booking platform

Dec-15 DESKTOP GENETICS Series A - Illumina Inc. Genome engineering and editing

softwareDec-15 - - Up to Eleven Digital Solutions Online platform for mental health

consultationDec-15 Series A 1.6 Capricorn Venture Partners Cardiac health tele-monitoring

dashboardDec-15 Venture 5.1 Balderton Capital; Maxfield Capital Patient-controlled online medical

record systemDec-15 Series C 15.0 - Data-driven diagnostic testing

platformNov-15 - - Change Partners Physical rehabilitation programme

design and administration platform Nov-15 Venture 26.8 Dievini Hopp BioTech holding Big data-driven healthcare decision-

making support softwareNov-15 Venture 5.0 Oxford University Hospitals NHS Trust; University Of

Oxford, Endowment ArmMRI-based liver image analysis software

Nov-15 - 0.6 Turenne Capital Partenaires; IT Translation Investissement; CREAZUR France

Touchless medical image viewing platform

Nov-15 Seed 1.1 -Consumer health tracking application and patient insight tool for professionals

Oct-15 Seed - - Dental diagnostic software

Oct-15 - - Visiomed Group SA Healthcare decision-making support platform

Oct-15 Seed 1.1 Inveready Asset Management, S.G.E.I.C., S.A. Medical imaging software

Oct-15 Seed 1.7 Tekes Microscopy visualisation software

Oct-15 Seed 0.6 Enterprise Ireland, Investment Arm; Kernel CapitalAppointment and patient communication management platform

Sep-15 DESKTOP GENETICS Venture 2.1 IQ Capital Partners LLP; London Business Angels; Funding

London; Capital Enterprise, Investment ArmGenome engineering and editing software


HealthTech: Selected European Fundraisings in 2015

Sources: Press releases, Capital IQ and Results analysis


FUNDS RAISED


LOCATION

Aug-15 Series A - Wild Blue Cohort Online consumer care platform

Aug-15 Series A 3.4 LEO Pharma A/S; Personal Health Solutions Capital Skin health tracking and inspection mobile application

Jul-15 Seed 1.5 - Online GP consultation platform for desktop and smartphone

Jul-15 Seed 5.0 Smedvig Capital Limited Personalised healthcare information assistant applications

Jun-15 Series B 9.2 Amadeus Capital Partners; Gilde Healthcare Partners; Archimedia

Primary care practice and case management software

Jun-15 - - WuXi PharmaTechData management and analysis software for the life sciences industry

May-15 Series A 5.0 Industrifonden; Briban Invest Mobile patient recruitment and trial management software and services

May-15 - 10.0 - Online platform for medical and dental appointment scheduling

May-15 Series A 7.2QUALCOMM Ventures; Mangrove Capital Partners; Innovation Capital; ABRT Venture Fund; TA Ventures; Maya Capital LLP

Online platform for private and public healthcare appointment booking

May-15 Venture 3.9 XLHealth Mobile telemedicine application for video healthcare consultations

May-15 - - Parkwalk Advisors Late phase clinical trial design, data capture and management software

Apr-15 Venture 5.3 Prime VenturesHealthcare information exchange software for clinical information sharing

Mar-15 Seed 0.3 - Genomic data sharing platform

Mar-15 - 8.5 - Neuro-therapy software and hardware

Feb-15 - 9.9 - Diversified healthcare software vendor

Feb-15 Seed 2.5 Creathor Venture; Partech; Stephan Schamback; Heilemann Ventures; Atlantic Labs

Telemedicine application for dermatology

Feb-15 Series B 13.5 Amadeus Capital Partners Limited; Smedvig Capital Limited; Octopus Investments Limited

Patient eMarketplace for clinical trials

Jan-15 Series A 1.5 Capricorn Venture Partners; Participatiemaatschappij Vlaanderen NV

Simulation software for cardiovascular procedures

36


COMPANY (31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

GENERALISTS WITH SIGNIFICANT HEALTHTECH EXPOSURE

Oracle 36.53 81% 153,471 52,335 (9,987) 143,484 37,666 0.6% 60.7% 43.9% 45.1% 3.8 x 3.8 x 8.7 x 8.4 xEMC 25.68 85% 49,789 7,642 1,313 51,102 24,900 3.5% 62.4% 25.0% 26.2% 2.1 x 2.0 x 8.2 x 7.6 xSAP 80.25 98% 95,929 5,175 6,179 102,107 22,293 5.3% 72.2% 35.2% 35.0% 4.6 x 4.3 x 13.0 x 12.4 xThermo Fisher Scientific 141.85 99% 56,612 503 12,818 69,430 16,868 4.3% 46.2% 24.8% 25.7% 4.1 x 3.9 x 16.6 x 15.4 xComputer Sciences Corporation 32.68 45% 4,535 1,818 821 5,356 9,003 (16.6%) 24.1% 13.5% 17.7% 0.6 x 0.7 x 4.4 x 4.0 xThomson Reuters 37.77 94% 29,008 869 8,464 37,472 8,836 2.1% 28.0% 27.9% 29.1% 3.1 x 3.0 x 11.0 x 10.3 xAspen Technology 37.76 81% 3,145 181 (181) 2,963 455 7.3% 87.7% 44.8% 47.4% 6.5 x 6.1 x 14.5 x 12.8 x 25th percentile 1.4% 37.1% 24.9% 25.9% 2.6 x 2.5 x 8.4 x 8.0 xMedian 3.5% 60.7% 27.9% 29.1% 3.8 x 3.8 x 11.0 x 10.3 x75th percentile 4.8% 67.3% 39.6% 40.1% 4.3 x 4.1 x 13.8 x 12.6 x

HEALTHCARE IT - EUROPE

CompuGroup Medical 36.80 92% 1,830 32 376 2,206 595 7.7% 33.9% 20.6% 22.8% 3.7 x 3.4 x 18.0 x 15.1 xCegedim 34.75 74% 485 237 197 682 552 2.9% 46.2% 17.9% 18.4% 1.2 x 1.2 x 6.9 x 6.5 xEMIS Group 16.78 98% 1,052 13 6 1,058 237 7.1% 48.2% 31.5% 31.8% 4.5 x 4.2 x 14.2 x 13.1 xServelec Group 4.91 97% 341 8 (8) 333 98 6.2% 45.3% 24.3% 25.4% 3.4 x 3.2 x 14.0 x 12.6 xNoemaLife 7.30 88% 55 4 40 96 82 12.8% 22.4% 19.2% 19.6% 1.2 x 1.0 x 6.1 x 5.3 xCraneware 11.76 95% 316 42 (42) 274 48 10.9% 95.0% 30.6% 31.0% 5.8 x 5.2 x 18.8 x 16.7 x 25th percentile 6.4% 36.7% 19.6% 20.4% 1.8 x 1.7 x 8.7 x 8.0 xMedian 7.4% 45.7% 22.5% 24.1% 3.6 x 3.3 x 14.1 x 12.8 x75th percentile 10.1% 47.7% 29.1% 29.6% 4.3 x 4.0 x 17.0 x 14.6 x

HEALTHCARE IT - US

McKesson 197.23 81% 45,384 5,359 5,524 50,908 189,256 6.2% 6.3% 2.6% 2.7% 0.3 x 0.3 x 10.4 x 9.2 xCerner 60.17 79% 20,584 465 166 20,751 4,591 20.3% 84.5% 33.6% 33.8% 4.5 x 3.8 x 13.5 x 11.1 xIMS Health 25.47 76% 8,369 394 3,894 12,263 2,899 9.0% 53.4% 30.5% 31.0% 4.2 x 3.9 x 13.9 x 12.5 xAllscripts Healthcare Solutions 15.38 97% 2,907 91 575 3,482 1,399 5.5% 45.5% 17.6% 19.5% 2.5 x 2.4 x 14.2 x 12.1 xathenahealth 160.97 94% 6,250 118 182 6,432 925 19.9% 59.8% 19.4% 20.7% 7.0 x 5.8 x 35.9 x 28.0 xMedAssets 30.94 99% 1,837 - 798 2,634 765 0.9% 76.1% 31.0% 31.7% 3.4 x 3.4 x 11.1 x 10.7 xQuality Systems 16.12 86% 981 111 (111) 870 500 6.2% 54.6% 14.7% 16.9% 1.7 x 1.6 x 11.8 x 9.7 xInovalon Holdings 17.00 50% 2,565 714 (429) 2,136 441 21.4% 68.8% 34.8% 35.7% 4.8 x 4.0 x 13.9 x 11.2 xHealthstream 22.00 68% 696 145 (145) 551 207 12.4% 56.6% 16.1% 16.5% 2.7 x 2.4 x 16.5 x 14.3 xComputer Programs & Systems 49.75 79% 562 38 (38) 524 184 5.6% 45.9% 17.9% 22.6% 2.8 x 2.7 x 15.9 x 11.9 xEvolent Health 12.11 52% 714 210 79 794 160 32.4% 27.5% (22.3%) (13.2%) 4.9 x 3.7 x n.m. n.m.Teladoc 17.96 51% 691 152 (125) 566 76 56.0% 77.2% (66.6%) (26.2%) 7.4 x 4.8 x n.m. n.m.Castlight Health 4.27 36% 404 147 (147) 257 75 34.5% 39.1% (83.9%) (46.3%) 3.4 x 2.5 x n.m. n.m. 25th percentile 6.0% 45.8% 5.5% 9.1% 2.8 x 2.5 x 13.5 x 11.1 xMedian 16.1% 55.6% 17.7% 20.1% 3.8 x 3.6 x 13.9 x 11.9 x75th percentile 24.1% 70.6% 30.6% 31.2% 4.9 x 3.9 x 15.9 x 12.5 x

BIOPHARMA IT

Medidata Solutions 49.29 80% 2,729 287 (38) 2,692 399 18.9% 74.7% 22.9% 24.6% 6.8 x 5.7 x 29.5 x 23.1 xVeeva Systems 28.85 86% 3,837 339 (339) 3,497 398 25.7% 62.9% 28.2% 29.4% 8.8 x 7.0 x 31.2 x 23.8 xInstem 3.32 97% 43 2 - 28 22 5.9% 14.8% 15.4% 17.3% 1.9 x 1.8 x 12.5 x 10.5 x 25th percentile 12.4% 38.9% 19.1% 20.9% 4.3 x 3.8 x 21.0 x 16.8 xMedian 18.9% 62.9% 22.9% 24.6% 6.8 x 5.7 x 29.5 x 23.1 x75th percentile 22.3% 68.8% 25.5% 27.0% 7.8 x 6.3 x 30.3 x 23.4 x

EBITDA MARGIN


HealthTech: Selected Publicly Traded Companies

(1) McKesson excluded from ‘Healthcare IT – US’ summary analysis above because majority of revenue is generated from pharmaceutical distributionNote: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 50x EV / EBITDA; net debt includes minority interest Source: Capital IQ

(1)


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Richard LatnerMANAGER - LONDON





















































SECTION 4

CyberScope


39








• Founded in 1991


Marketing


QUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: CYBERSECURITY


40

Avecto has received a $49m growth equity investment from JMI Equity

OPPORTUNITYResults International was appointed to support the company in evaluating its investment options, preparing for a highly competitive process, seeking out the most appropriate partners on a global basis and executing a transaction.

OUTCOMEResults leveraged its relationships with top tier global growth equity investors to identify a number of the best strategic partners for Avecto. These firms had exemplary track records backing high growth technology companies and shared the shareholders’ excitement about Avecto’s positioning in the fast-growth cyber security market.

PAUL KENYON & MARK AUSTIN, FOUNDERS & CO-CEOS, AVECTO, COMMENT:“From start to finish the Results team were fantastic. They drove the process forwards relentlessly, were always on top of the detail but never lost sight of the big picture. We would recommend them to anyone.”

Results International is delighted to have advised Avecto, the leading endpoint security software firm, on its $49m (£32m) minority investment from JMI Equity, a US-based growth equity investor focused on backing leading software and services companies.

SITUATIONAvecto is a market leader in the large and fast-growing $3 billion endpoint security sector. Headquartered in Manchester, UK, with offices in Boston, USA, Melbourne, Australia and Frankfurt, Germany, Avecto was founded by entrepreneurs Mark Austin and Paul Kenyon in 2008. Since that time, the company has demonstrated significant growth, serving a roster of over 600 enterprise clients and adding over 100 new customers per year for the past five years.


41

70

80

90

100

110

120

130

140

150

160

Broadline Endpoint Network DataMonitoring & Analysis Global Security NASDAQ Comp

Results International Global Cybersecurity Indices


Sep-15 Oct-15 Nov-15Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15

3.0%

(1.6%)

5.7%

(22.6%)

(6.7%)

4.1%

(7.5%)

Q4 2015 PERFORMANCEBroadline 11.1%Endpoint (1.8%)Network (5.8%)Data

(18.5%)Monitoring & Analysis (7.4%)Global Security (3.3%)

LAST

12

MON

TH S

HARE

PRI

CE P

ERFO

RMAN

CEQUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: CYBERSECURITY

Dec-15

42

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

7.9%

17.0%

(7.8%) (10.0%)

4.5%

16.5%12.2%

19.9%

2.6%

(26.6%)

(16.3%)

2.4%

(5.7%)

16.0%

(34.8%)

(3.3%) (4.0%)

7.8%

0.0%

16.3%

(33.5%)

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

(18.1%)

47.6%

1.6%13.8% 14.7%

(63.8%)

9.3%

(47.9%)

3.6% 1.7%

(25.7%)

43.7%

(30.3%)

15.4%

(34.3%)

28.1%

(4.0%)

34.8%

(17.0%)(12.3%)(5.4%)

Cybersecurity: Share Price Performance

(1) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stock’s respective IPO date (see slide 5) and 31 st December 2015Note: Based on share prices as at 31st December 2015Sources: Capital IQ and Results analysis

LAST

12

MON

THS

Q4 2

015

BROADLINE ENDPOINT NETWORK DATAMONITORING & ANALYSIS

(1)

(1)


(1)

(1)

43

Cybersecurity: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTION RAISED

($M)INDICATIVE PRICE

RANGE ($)IPO LISTING

PRICE ($)INCREASE VS.

RANGEDAY 1

INCREASECURRENT

INCREASE(1)CURRENT EV ($M)

EV / REVENUE

2015EEV / EBITDA

2015E

Nov-15Email security, continuity and archiving

78 10.00-12.00 10.00 (9.1%) 1.0% (4.0%) 608 4.6 x n.m.

Jul-15Detection, analytics and penetration testing

103 13.00-15.00 16.00 14.3% 58.0% (5.4%) 440 4.1 x n.m.

Jun-15 Antivirus and network security 552 n.a. 3.54 n.a. 7.4% 9.3% 2,164 4.5 x 30.1 x

Sep-14 Privileged account security 86 13.00-15.00 16.00 14.3% 87.1% 182.1% 1,374 9.0 x 35.4 x

Jun-14 Mobile security and management 100 8.00-10.00 9.00 0.0% 22.4% (59.9%) 192 1.3 x n.m.

Nov-13 Network security and data storage 64 18.00-21.00 18.00 (7.7%) 19.7% 3.8% 845 2.7 x 17.7 x

Sep-13 Forensics and malware protection 304 12.00-14.00 20.00 53.8% 80.0% 3.7% 3,073 4.9 x n.m.

Sep-12 Cloud security and compliance 91 11.00-13.00 12.00 0.0% 18.0% 175.8% 1,111 6.8 x 20.5 x

Jul-12 Firewalls and network security 260 34.00-37.00 42.00 18.3% 26.5% 319.4% 15,394 14.0 x n.m.

Apr-12 Communication security 82 10.00-12.00 13.00 18.2% 8.3% 400.1% 2,835 10.7 x n.m.

(1) Current increase from IPO price; market data as of 31st December 2015Note: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 50x EV / EBITDASources: Capital IQ and Results analysis

Nasdaq

Nasdaq

Nasdaq

Nasdaq

NYSE

NYSE

Nasdaq

LSE

Nasdaq


Nasdaq

44

Cybersecurity: Valuation Benchmarks

Note: Symantec’s (Broadline) 2016 forecast revenue excludes the Veritas business unit (in active sale discussions with Carlyle)Note: Global Security represents the median of all stocks in Broadline, Endpoint, Network, Data and Monitoring & Analysis, with no weighting appliedNote: EV = Enterprise Value; financials calendarised to December year end; median values reportedSee Selected Publicly Traded Companies (slide 12) for details of companies included in each categorySources: Capital IQ and analyst reports



Broadline Endpoint Network Data Monitoring & Analysis

Global Security

(10.0%)

(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

(4.2%)

11.1%8.0%

28.1%

22.8%

16.6%


Global Security(5.0%)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0% 32.2%

19.4%16.4%

2.4%

(1.4%)

15.4%


Global Security

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

3.4 x2.8 x

3.1 x

6.4 x

4.1 x4.4 x


Global Security

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

10.4 x

20.8 x

14.4 x

n.m.

20.5 x

14.1 x


45

Cybersecurity: Global M&A Activity Q1 2011 – Q4 2015

Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis


Q1 2011

Q2 2011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

0

5

10

15

20

25

30

35

40

0

2,000

4,000

6,000

8,000

10,000

12,000

26 26 26 27

23 23

32

24

15

31

2522

32

28 27

22

34 33

22

35

No. of Deals Total Disclosed Deal Value

NUM

BER

OF

DEAL

S

TOTA

L DI

SCLO

SED

DEAL

VAL

UE ($

M)

46

Cybersecurity: Selected Deals in 2015

DATE BUYER TARGET EV ($M) EV / REVENUE

EV / EBITDA COMPANY DESCRIPTION TARGET

LOCATION

Dec-15 PE Consortium 9,671.4 7.0x 28.3x Desktop and mobile anti-virus and web browser protection

Dec-15 31.8 - - Anti-virus and anti-spam endpoint security and encryption

Dec-15 35.0 - - Web-based and on-premises network security threat analysis and management

Nov-15 85.0 - - Data encryption, information protection and control

Nov-15 18.7 - - Secure web gateway, web and email filtering

Oct-15Firewall business

- - - McAfee next generation firewall and enterprise firewall business

Oct-15 452.5 6.0x - Network visibility and behaviour anomaly detection

Oct-15 300.0 1.8x 6.7x(1) HP’s next generation network intrusion prevention and response business

Oct-15 400.0 8.0x - Encryption and key management vendor

Oct-15 30.5 3.8x(2) - Privilege & administrative rights management and application control

Sep-15 425.0 2.0x - Secure enterprise mobility solutions

Aug-15 - - - Range of security software from antivirus to firewall and mobile security

Aug-15 - - - Online cybersecurity analytics and big data platform

Aug-15 - - - Endpoint security integrity and threat detection

Aug-15 8.5 - - Mobile app threat identification and prevention

Aug-15 - - - Privileged user access, password management and network authentication

Jul-15 - - - Data encryption and tokenisation of personally identifiable information

Jul-15 190.0 - - Real-time behavioural analytics and breach detection software

Note: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)(1) Multiple based on EBIT (2) Multiple based on FY16 projected revenueSources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis


(tech assets)

(China)

http://www.trustmarque.com/partners/sophos/

47

Cybersecurity: Selected Deals in 2015

DATE BUYER TARGET EV ($M) EV / REVENUE

EV / EBITDA COMPANY DESCRIPTION TARGET

LOCATION

Jun-15 635.0 - - Cloud-delivered network security and intelligence

Jun-15 - - - Cybersecurity anomaly detection and predictive analytics

Jun-15 - - - Cloud-based email security for managed service providers

Jun-15 19.8 5.0x - Intelligent identity management application developer

Jun-15 16.5 1.9x - Vulnerability assessment and penetration testing

May-15 40.0 2.0x - Mobile virtual private network provider (VPN)

Apr-15 150.0 5.0x - Enterprise identity and access management

Apr-15 1,300.0 3.5x(1) - Web filtering and data theft prevention

Apr-15 850.0 3.9x 65.6x Data security and compliance management solutions

Apr-15 80.0 - - Mobile threat management platform

Mar-15 - - - Mobile VPN service for secure browsing

Mar-15 2,400.1 - - Enterprise security solutions against advanced threats

Mar-15 59.8 - - Predictive cyberthreat detection and prevention

Mar-15 40.1 - - Firewall and intrusion detection software

Feb-15 - - - Online two-factor authentication software

Feb-15 79.8 - - CPU level threat prevention engine

Feb-15 - - - Data-centric security software

Jan-15 - - - Mobile security and risk analytics

Note: In certain cases EV/Revenue are publicly reported estimates; TTM financials have been used where possible; EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)(1) Multiple of CY2015 projected revenues, as per Raytheon conference call on 20/04/15Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis


https://datafloq.com/read/big-data-startup-review-metafor-software/590

https://login.opendns.com/

http://www.trustmarque.com/partners/sophos/

http://www.teamlogicit.com/partners/

https://www.nsense.net/

https://en.wikipedia.org/wiki/CA,_Inc.

https://www.linkedin.com/grp/post/4647606-6015717426493161475

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://help.d-e.org/w/page/67661317/AVG%20switch%20to%20AVAST&ei=XzedVf2xOaqX7Qas5q6YBw&bvm=bv.96952980,d.ZGU&psig=AFQjCNGqWdz7xeO-lgr4-TJ5-F8Oc9ZqhA&ust=1436453086162360

http://www.privax.com/

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.yourlogoresources.com/wp-content/uploads/2012/04/&ei=ZTqdVaLIOYLd7Qaexoq4Bg&bvm=bv.96952980,d.d24&psig=AFQjCNHx277YzQTVqJTAYQX3aPo_LwKYPg&ust=1436453859480750

http://news.softpedia.com/news/Welsh-Carson-Anderson-Stowe-to-Acquire-Alert-Logic-377082.shtml

https://www.simeiosolutions.com/

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://twitter.com/lacoonsecurity&ei=_SidVay2MqPW7QbYnZmoBw&bvm=bv.96952980,d.ZGU&psig=AFQjCNHk5BnRow5i9mJpDpZVgOsjcVXBjQ&ust=1436449404013276

https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://mothership.sg/2015/01/everything-you-need-to-know-about-singtels-new-logo-in-60-seconds/&ei=bSqdVeyXEabd7Qa41oHQBw&bvm=bv.96952980,d.ZGU&psig=AFQjCNGhup09dvGNFVNiY74YWXlH_VLTVw&ust=1436449771192654

http://articles.chicagotribune.com/2013-11-11/business/chi-trustwave-acquisition-20131111_1_security-firm-new-york-firm-data

http://www.dividend.com/news/2014/raytheon-company-matches-eps-estimates-declares-dividend-rtn/

http://pulse2.com/2013/05/20/vista-equity-partners-acquires-websense-inc-wbsn-86286/

48

Cybersecurity: Selected Fundraisings in 2015


FUNDS RAISED


LOCATION

Dec-15 Venture 66.0 GE Asset Management, Fairhaven Capital Partners, Brookline Venture Partners, LLR Partners, Mass Mutual Ventures Advanced data loss prevention platform

Dec-15 Series C 50.0 NewSpring Capital Cyberthreat intelligence monitoring and management

Dec-15 Series A 49.0 JMI Equity Proactive endpoint protection software

Nov-15 Seed 2.3 Albion Ventures, Notion Capital, Winton Technology Ventures, C5 Holdings Enterprise security intelligence

Nov-15 Series B 250.0 Accel Partners, Insight Venture Partners Network vulnerability detection systems

Oct-15 Series B 22.0 New Enterprise Associates, Bessemer Venture Partners, Marker, Citi Ventures, Innovation Endeavors

Deception-based advanced threat protection

Oct-15 Venture 54.5 .406 Ventures, Accomplice, Highland Capital, KPCB, Sequoia Capital Endpoint and server security

Oct-15 Series C 59.0 SoftBank, CRV, Spark Capital Real-time endpoint threat detection and response

Oct-15 Series B 25.0 Third Point Ventures, Tiger Global Management, Data Collective, Granite Hill Capital, Westly Group, SineWave Ventures

Endpoint threat detection and protection

Oct-15 Series B 85.0 JMI Equity, New Enterprise Associates, Accel Partners, Split Rock Partners Endpoint data protection and security

Sep-15 Series G 150.0 TPG, Institutional Venture Partners, T. Row Price Associates, Andreessen Horowitz, Franklin Templeton, Geodesic Partners

Enterprise security and systems management

Sep-15 Series B 110.0 TPG Growth, EMC, Lightspeed Ventures, Google Capital Security-as-a-Service platform

Sep-15 Series D 110.0 FMR, Google Capital, Microsoft Ventures, Baidu, Qualcomm Ventures, New Enterprise Associates, Union Square Ventures Internet security protection

Sep-15 Series D 75.0 Iconiq Capital, Accel Partners, Lightspeed Venture Partners, Social+Capital Cloud access security broker

Aug-15 Series E 52.0 Institutional Venture Partners, Trident Capital, KPCB, GGV Capital Security management and threat intelligence

Jul-15 Series C 42.0 DFJ Growth, KKR, Dell Ventures, CapitalOne Ventures, TenEleven Ventures Website performance and security

Jul-15 Series C 100.0 Google Capital, Rackspace, Accel Partners, Warburg Pincus Endpoint protection and threat intelligence

Jul-15 Series D 30.0 Pinnacle Ventures, Qihoo 360 Technology, Redpoint Ventures Secure cloud protection for Windows and Android

Sources: Press Releases, Capital IQ, Mergermarket and Results analysis


49

Cybersecurity: Selected Fundraisings in 2015


FUNDS RAISED


LOCATION

Jun-15 Series B 21.0 Bessemer Venture Partners, Foundry Group, TechStars, ff Venture Capital, Idea Fund, Correlation Ventures Bot detection and mitigation platform

Jun-15 Venture 84.0 Insight Venture Partners Application security testing and attack prevention

Jun-15 Series B 23.0 Comcast Ventures, Menlo Ventures, Globespan Capital Partners, Commonwealth Capital Partners, Flybridge Capital Partners Data security analytics

May-15 Venture 14.9 Goldman Sachs, EDB Investments, Siemens Venture Capital, Alcatel-Lucent, Mitsui, Fairhaven Capital, Arsenal Venture Partners Real-time endpoint threat detection

May-15 Series C 35.0Cisco, Glynn Capital, Evolution Equity, Lumia Capital, Mohr Davidow Ventures, Northgate, Greylock , Sequoia Capital, Sutter Hill Ventures

Cloud-delivered network security and intelligence

May-15 Series B 25.0 Spark Capital, Lockheed Martin, CRV Real-time cyberattack detection and response

Apr-15 Series C 30.0 BDS Ventures, Hewlett Packard Ventures, Index Ventures, Rembrandt Venture Partners, Sequoia Capital Cloud access security

Apr-15 Series C 30.0 Redpoint Ventures, Benchmark Capital, Google Ventures, Radar Partners, True Ventures

Two-factor authentication network security

Apr-15 Series C 100.0 Accel Partners, BlackRock, Andreessen Horowitz, Data Collective, Formation 8, General Catalyst Partners, Valor Capital Group

Enterprise data centre and cloud computing security

Apr-15 Series D 25.0 AITV, Cisco Ventures, EPIC Ventures, Fortinet, Granite Ventures, Intel, Trident Capital, Vanedge Capital, VMware Virtualised infrastructure security

Mar-15 Venture 52.0 Andreessen Horowitz Enterprise security and systems management

Mar-15 Series A 18.0 Hoxton Ventures, Talis Capital, Invoke Capital Partners Behavioural cyber defence technology

Mar-15 Series B 30.0 Third Point Ventures, Mayfield Fund, Telstra, Pelion Ventures Cloud application security services

Feb-15 Series B 25.0 GGV Capital, Icon Ventures, Kleiner Perkins Caulfield & Byers, Google Ventures, Greylock Partners, Allegis Capital Crowd security intelligence platform

Feb-15 Venture 15.0 83North Venture Capital, Bessemer Venture Partners Secure mobile gateway and threat prevention

Jan-15 Series B 15.0 Sequoia Capital, Index Ventures, EMC, Zohar Zisapel User activity auditing and threat protection

Jan-15 Series B 8.0 Harmony Partners, New Science Ventures, .406 Ventures Cloud data encryption platform

Jan-15 Series C 40.1 Jafco Ventures, TechOperators, Google Ventures, Meritech Capital, KPCB Data security platform

Sources: Press Releases, Capital IQ, Mergermarket and Results analysis


https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://twitter.com/distil&ei=MySdVY6uNOWV7AbHxruICA&bvm=bv.96952980,d.ZGU&psig=AFQjCNECstfFkxkvIb8hbJ2ieytFEx6Qmg&ust=1436448178286929

50

Cybersecurity: Selected Publicly Traded Companies

Note: Symantec’s 2016 forecast revenue excludes the Veritas business unit (in active sale discussions with Carlyle)Note: Calendarised to December year end; $ millions, except share price data; multiples capped at 20x EV / Revenue and 50x EV / EBITDA; net debt includes minority interestSource: Capital IQ


PRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE REV. GROWTH GROSS MARGIN EBITDA MARGINCOMPANY (31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016BROADLINESymantec 21.00 76.9% 14,186 3,357 (1,617) 12,569 5,372 (25.0%) 82.3% 31.1% 35.1% 2.3 x 3.1 x 7.5 x 8.9 xTrend Micro 41.02 90.5% 5,599 1,038 (1,037) 4,561 1,029 16.6% 82.3% 33.3% 32.5% 4.4 x 3.8 x 13.3 x 11.7 x

ENDPOINTAVG Technologies 20.05 68.8% 1,054 145 121 1,175 427 4.4% 86.1% 36.0% 35.6% 2.8 x 2.6 x 7.6 x 7.4 xCyberArk 45.14 59.1% 1,623 250 (250) 1,374 153 32.2% 85.7% 25.3% 22.6% 9.0 x 6.8 x 35.4 x 30.0 xF-Secure 2.80 67.2% 441 88 (88) 354 159 5.8% 94.9% 19.4% 19.0% 2.2 x 2.1 x 11.4 x 11.0 xMobileIron 3.61 27.9% 290 98 (98) 192 147 16.8% 81.8% (38.3%) (19.1%) 1.3 x 1.1 x n.m. n.m.Sophos 3.86 89.5% 1,934 68 230 2,164 477 11.1% 80.0% 15.1% 14.7% 4.5 x 4.1 x 30.1 x 27.8 x

NETWORKBarracuda Networks 18.68 39.9% 995 154 (149) 845 311 10.1% 78.9% 15.4% 16.6% 2.7 x 2.5 x 17.7 x 14.9 xCheck Point Software 81.38 92.0% 15,153 1,299 (1,299) 13,854 1,629 8.0% 88.2% 57.6% 57.0% 8.5 x 7.9 x 14.8 x 13.8 xFortinet 31.17 62.0% 5,543 908 (908) 4,635 1,009 23.6% 70.0% 16.4% 17.0% 4.6 x 3.7 x 28.1 x 21.9 xF5 Networks 96.96 71.7% 6,827 774 (774) 6,052 1,952 7.1% 82.7% 33.3% 40.1% 3.1 x 2.9 x 9.3 x 7.2 xPalo Alto Networks 176.14 87.8% 15,663 761 (269) 15,394 1,097 38.4% 72.9% 5.7% 24.2% 14.0 x 10.1 x n.m. 41.9 xRadware 15.34 61.6% 695 92 (92) 603 216 5.0% 82.1% 19.8% 18.1% 2.8 x 2.7 x 14.1 x 14.6 xSecunet 24.07 99.4% 156 26 (26) 130 98 5.1% 59.7% 9.8% 9.9% 1.3 x 1.3 x 13.4 x 12.7 x

DATAFireEye 20.74 37.5% 3,546 1,170 (472) 3,073 625 31.1% 58.9% (32.0%) (18.1%) 4.9 x 3.7 x n.m. n.m.Imperva 63.31 81.2% 2,056 254 (254) 1,802 230 26.3% 77.7% 3.3% 6.2% 7.8 x 6.2 x n.m. n.m.Mimecast 9.60 89.1% 573 34 35 608 134 19.5% 68.3% 8.2% 7.0% 4.6 x 3.8 x n.m. n.m.Proofpoint 65.01 86.2% 2,911 416 (76) 2,835 264 29.9% 66.4% 1.5% 3.2% 10.7 x 8.3 x n.m. n.m.

MONITORING & ANALYSISGuidance Software 6.02 58.9% 184 18 (18) 166 105 5.3% 66.9% (1.4%) 1.4% 1.6 x 1.5 x n.m. n.m.Qualys 33.09 59.7% 1,285 174 (174) 1,111 164 22.8% 78.3% 33.0% 32.7% 6.8 x 5.5 x 20.5 x 16.8 xRapid7 15.13 57.8% 667 227 (227) 440 108 28.5% 76.0% (28.6%) (26.2%) 4.1 x 3.2 x n.m. n.m.

25th percentile 59.1% 153 5.8% 70.0% 3.3% 6.2% 2.7 x 2.6 x 11.4 x 11.2 xMedian 68.8% 264 16.6% 78.9% 15.4% 17.0% 4.4 x 3.7 x 14.1 x 14.2 x75th percentile 87.8% 1,009 26.3% 82.3% 31.1% 32.5% 6.8 x 5.5 x 20.5 x 20.6 x

OPERATING METRICS VALUATION METRICSREVENUE EBITDA

51

Contact Us



























































SECTION 5

AdTech & MarTech Barometer


53







• Founded in 1991



Marketing

Healthcare

Technology

QUARTERLY TECH REPORT – 2015 ANNUAL REVIEW: ADTECH & MARTECH


54

Dec-14Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Jan-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Feb-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Mar-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15Apr-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15May-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jun-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Jul-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Aug-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Sep-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Oct-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Nov-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-15Dec-1550%

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

Diversified Internet NASDAQ Comp MarTech Data AdTech


Results International Global AdTech & MarTech Indices



LAST

12

MON

TH S

HARE

PRI

CE P

ERFO

RMAN

CE

(0.7%)

42.8%

5.7%

(5.7%)

(37.3%)

Q4 2015 PERFROMANCEDiversified Internet 22.5%Nasdaq Comp 8.4%Data 6.6%AdTech 1.7%MarTech (2.1%)

55

(100%)

(50%)

-

50%

100%

150%

(80.4%)

(35.8%)

(2.0%)

(49.5%)(57.7%)(55.1%)

(85.1%)

(46.8%)

(78.8%)(78.3%)(54.5%)

1.9%

(28.2%)(39.7%)(30.4%)

(45.5%)(20.3%)(20.3%)

(6.2%)

67.5%

(12.3%)

8.7%

51.8%

3.2%

(3.3%)

10.4%

(39.5%)

46.6%

117.8%

(51.0%)

34.1%

(34.2%)

(100%)

(80%)

(60%)

(40%)

(20%)

-

20%

40%

60%

(78.2%)

(38.2%)

5.5%

(14.0%)

14.4%

(5.0%)

(58.1%)

10.1%

(45.7%)

(25.3%)

0.0%13.2%10.8%

29.3%35.5%

(2.9%)

26.0%20.6%4.4%

21.4%

1.0%

(4.4%)

(26.7%)

5.9% 6.8% 13.5%

(8.8%)

21.9%32.0%

12.4%16.4%15.0%

AdTech & MarTech: Share Price Performance

EV/2015E Net Revenue n.m 0.3x - 2.4x 1.6x 1.0x 0.6x 2.2x 3.3x 0.6x 3.9x 1.0x 1.5x 1.4x 2.2x 8.3x 5.9x11.3

x11.5

x1.9x 4.9x 4.4x 1.3x 7.9x 3.0x 16.1

x6.7x4.1x4.3x 1.0x 0.3x 11.0

x(1)

(1) 2015E Net Revenue data is unavailable(2) These companies have IPO’d within the last 12 months, the share price movement represents the change between each stocks respective IPO date (see slide 4) and 31 st December 2015Note: Based on share prices as at 31st December 2015Sources: Capital IQ and Results analysis

(2) (2)

(2)

(2)

ADTECH DIVERSIFIED INTERNETMARTECH DATA

LAST

12

MON

TH S

HARE

PRI

CE

PERF

ORM

ANCE

Q4 2

015


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56

AdTech & MarTech: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTION RAISED ($M)

INDICATIVE PRICE RANGE ($)

IPO LISTING PRICE ($)

DAY 1 INCREASE

CURRENT INCREASE

CURRENT EV ($M)

EV / NET REVENUE

2015EEV / EBITDA

2015E

Jun-15 AI ad optimisation 42 n.a. 2.1 4.2% (80.4%) (7) n.m. n.m.

May-15 eCommerce platform 131 12.0-14.0 17.0 51.1% 51.8% 2,152 11.0x n.m.

Mar-15 Localised ad targeting 75 10.5-12.5 11.5 (15.1%) (85.1%) 23 0.3x n.m.

Oct-14 Marketing automation 125 22.0-24.0 25.0 20.4% 125.2% 2,030 11.3x n.m.

Sept-14 Multi-channel ad server 75 n.a. 1.7 0.8% (51.1%) 42 n.a. n.a.

Jul-14 Programmatic video DSP 44 7.0-8.0 7.0 64.3% 94.3% 437 3.9x n.m.

Jul-14 Multi-channel ad network 70 n.a. 3.9 4.4% (60.3%) 159 2.4x 11.1x

Apr-14 SSP 102 15.0-17.0 15.0 33.9% 9.7% 718 3.3x n.m.

Nov-13 Multi-channel network 33 n.a. 1.0 20.0% (90.4%) 22 1.0x n.m.

Oct-13 DSP focused on retargeting 251 27.0-29.0 31.0 14.2% 27.7% 2,201 4.3x 19.6x

Sep-13 DSP 116 27.0-29.0 29.0 93.4% (88.0%) 151 0.6x n.m.

Aug-13 Video ad network 46 12.0-14.0 9.0 0.0% (61.0%) 72 1.0x n.m.

Nasdaq

LSE

NYSE

AIM

Nasdaq

Nasdaq

NYSE

AIM

NYSE

AIM

NYSE

NYSE

(1) Current increase from IPO price; Market data as of 31st December 2015Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 60x EV / EBITDASources: Capital IQ and Results analysis


(1)

57

AdTech MarTech Data Diversified Internet

Global AdTech/ MarTech

-

5%

10%

15%

20%

25%

30%

35%

26.5%

30.4%

0.7%

17.0%

20.4%

AdTech MarTech Data Diversified Internet

Global AdTech/ MarTech

-

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x

1.0 x

7.1 x

3.2 x

6.7 x

2.7 x

AdTech & MarTech: Valuation Benchmarks

(1) (1)

(1) Global AdTech / MarTech represents the median of all stocks in AdTech, MarTech, Data & Diversified InternetNotes: EV = Enterprise Value; Financials calendarised to December year end; Median values reportedSee Selected Publicly Traded Companies (Slide 11) for details of companies included in each categorySource: Capital IQ & analyst reports

REVENUE GROWTH (2015-16E) EV / NET REVENUE 2015E


58

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 20150

20

40

60

80

100

120

-

$1bn

$2bn

$3bn

$4bn

$5bn

$6bn

$7bn

$8bn

$9bn

5443

74

52

108101

113106

98 101112

100

Number of deals Total disclosed deal value ($bn)

NUMB

ER O

F DEA

LS

TOTA

L DI

SCLO

SED

DEAL

VAL

UE ($

BN)

AdTech & MarTech: Global M&A Activity Q1 2013 – Q4 2015

(1) Q3 2014 data includes Alliance Data’s acquisition of Conversant ($2.2bn)(2) Q2 2015 data includes Verizon’s acquisition of AOL ($4.3bn)Sources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

(1) (2)


59

AdTech & MarTech: Selected Deals in H2 2015

DATE BUYER TARGET EV ($M) EV/REVENUE COMPANY DESCRIPTION TARGETLOCATION

Dec 15 20 1.0x B2B mobile ad network

Dec 15 - - Programmatic ad optimisation

Dec 15 141 1.0x Ad network with proprietary ad formats

Nov 15 20 1.0x Rich media Ad Server

Nov 15 450 7.9x Marketing BI DMP

Nov 15 1,083 2.4x Email and social marketing

Sep 15 683 6.3x TV and movie measurement

Sep 15 120 - Content management & GRC

Sep 15 - - Mobile attribution

Sep 15 - - In-store customer analytics

Sep 15 89 1.9x Social and video ad network

Sep 15 - - Mobile ad app SDK

Sep 15 17 1.1x Mobile and social DSP

Sep 15 500 - OTT video content

Sep 15 218 1.9x Mobile ad network and ad exchange

Aug 15 - - Predictive marketing CRM

Aug 15 - - Cross-channel optimisation and personalisation

Jul 15 1,000 6.0x Multi-channel, big data marketing cloud

(1) In certain cases EV/Revenue are publicly reported estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)

(2) Earn out of $25m has not been included in the calculation of EV(3) Deal has been announced, but is yet to close(4) Earn out of $86m (£56m) has not been included in the calculation of EVSources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

(4)

(1)


(2)

(3)

60

AdTech & MarTech: Selected Deals in H1 2015

DATE BUYER TARGET EV ($M) EV/REVENUE COMPANY DESCRIPTION TARGETLOCATION

Jun 15 720 3.5x Campaign management and optimisation stack

Jun 15 - - Targeted TV SSP

May 15 43 1.6x Ad server & search retargeting

May 15 12 1.1x Mobile DSP

May 15 4,135 2.3x Online publisher and full ad tech stack

May 15 26 4.2x eCommerce marketing platform

Apr 15 533 - Predictive cross-device retargeting

Apr 15 120 - mCommerce platform

Apr 15 200 5.0x eCommerce marketing automation

Apr 15 22 3.1x Mobile ad tracking

Mar 15 100 4.3x Retargeting DSP

Mar 15 85 5.0x Programmatic direct SSP

Mar 15 58 1.9x Mobile marketing optimisation

Mar 15 195 5.6x DMP

Feb 15 30 - App marketing SSP

Feb 15 - - Omni-channel shopper data & analytics

Jan 15 - - Ad exchange with DSP & SSP capabilities

Jan 15 125 6.3x B2B DMP

(1) In certain cases EV/Revenue are publicly reported estimates; TTM net revenues have been used where possible (gross revenues minus TAC generated in the last 12 months); EV = transaction value scaled to 100% shareholding plus net debt (incl. minority interest)

(2) Earn out of $22m has not been included in the calculation of EVSources: Press Releases, Capital IQ, Mergermarket, 451 Research and Results analysis

(1)


(2)

61

AdTech & MarTech: Selected Fundraisings in H2 2015


FUNDS RAISED

($M)INVESTOR PARTICIPATON COMPANY DESCRIPTION COMPANY

LOCATION

Dec 15 Series C 49 Mercato Partners (lead investor), Staley Capital and Silicon Valley Bank Data-driven marketing

Dec 15 - 22 Danica Pension DSP, DMP and Ad Server

Dec 15 Series B 30 Led by several major institutional investors, including European Investment Bank and Dutch L’Arche BV Native ad automation

Oct 15 Series C 33 Partech (lead investor), Highland Capital Partners Europe and Nauta Capital Social media monitoring

Oct 15 - 20 Accel-KKR eCommerce insight and optimisation

Oct 15 Series C 53 Insight Venture Partners, Lead Edge Capital, Mack Capital, Volition Capital (lead investors) and Silicon Valley Bank Tag and data management

Oct 15 Series B 65 Lightspeed Venture Partners (lead investor), Sequoia Capital, IDG Ventures and Lakestar

B2B predictive marketing data and analytics

Oct 15 Series C 58Index Ventures (lead investor), Andreessen Horowitz, Bain Capital Ventures, Battery Ventures, Benchmark, Citi Ventures, Correlation Ventures, Danhua Capital, Pharus Capital Management, Salesforce Ventures and Tenaya Capital

Content A/B testing

Sep 15 Debt 100 Tennenbaum Capital Partners Mobile discovery platform

Sep 15 Debt 30 Silicon Valley Bank Programmatic ad exchange

Sep 15 Series A 33 Vector Capital B2C marketing cloud

Sep 15 Series B 40 IHeartMedia (lead investor), Advance Publications, Upfront Ventures and Foundry Group; Silicon Valley Bank (debt) Social data and ad buying

Aug 15 Series B 45 Tenaya Capital (lead investor), Sequoia Capital, SoftTech VC and others

Mobile marketing automation

Jul 15 Series E 67 Silicon Valley Bank (debt); Sapphire Ventures (lead investor), Cross Creek Advisors and previous investors Ad viewability and fraud

Jul 15 Series D 50Founders Fund (lead investor), BlueRun Ventures, Glynn Capital Management, AME Cloud Ventures, Yuan Capital, Salesforce Ventures, Formation 8

B2B predictive marketing

Jul 15 Series F 50 Susquehanna Growth Equity Content recommendation

Jul 15 Series G 30Sageview Capital (lead investor), Adobe Systems, Altos Ventures, Costanoa Venture Capital, Greenspring Associates, Salesforce.com Ventures, Scale Venture Partners and Sigma West

B2B account-based marketing

Jul 15 Series D 42 FTV Capital (lead investor), Mayfield Fund, InterWest Partners and FirstMark Capital

Omni-channel content management

(1) Round is reported to be split between unspecified equity and debt funding(2) Round is reported to be split $30million equity funding, $10million debt funding(3) Round is reported to be split $27million equity funding, $40million debt fundingSource: Press Releases, Capital IQ, Mergermarket and Results analysis

(2)

(3)


(1)

(1)

62

AdTech & MarTech: Selected Fundraisings in H1 2015


FUNDS RAISED

($M)INVESTOR PARTICIPATON COMPANY DESCRIPTION COMPANY

LOCATION

Jun 15 - 54 Harmony Partners (lead investor), Industry Ventures, DFJ Esprit, Trinity Ventures, Crosslink Capital and Adams Street Partners DSP

Jun 15 Series B 13 Smedvig Capital (lead investor), Panoramic Growth Equity Search retargeting

Jun 15 Series A 12 Softbank Capital and Google Ventures Predictive eCommerce targeting

Jun 15 Series D 33 FTV Capital (lead investor), Battery Ventures, First Round Capital and Shasta Ventures

Targeted in-email advertising

Jun 15 Series D 21 Ares Capital Corporation (lead investor), Vision Private Equity, Verlinvest, Syngenta Ventures and Unilever Ventures Mobile marketing CRM

May 15 Series D 74 Vitruvian Partners (lead investor), Seed Capital, Northzone, Index Ventures and DFJ Esprit

eCommerce review community

May 15 Series B 30 Neuberger Berman Digital media planning & management

May 15 Series C 40 Lightspeed Venture Partners (lead investor), Lerer Hippeau Ventures, First Round Capital, GGV Capital and Sequoia Capital Marketing management

Apr 15 Series A 5 Dawn Capital (lead investor), Northzone and Conor Ad viewability

Mar 15 Series E 46 Battery Ventures, Intel Capital, and Iconiq Capital Social media management

Mar 15 Series D 35 Sapphire Ventures (lead investor), Foundation Capital and Polaris Partners

Mobile analytics & marketing for apps

Mar 15 Series C 45 Undisclosed Augmented reality mobile ads

Feb 15 Series D 32 Adobe and Salesforce Ventures (lead investors), Cue Ball, Greycroft Partners, Hillsven Capital and US Venture Partners Content curation

Feb 15 Series D 31 Georgian Partners (lead investors), Bain Capital, Battery Ventures, Tenaya Capital and Presidio Ventures Tag management

Feb 15 Series C 16Frog Capital (lead investor), Bertelsmann Digital Media Investments, Greycroft, Sussex Place Ventures and Silicon Valley Bank

Affiliate marketing

Feb 15 Series E 117Fidelity Management and Research Company (lead investors), Marker Financial Advisors, Steadfast Capital, Advance Publications, Comcast Ventures; Groupe Arnault, Yahoo Japan and private investors

Content recommendation engine

Jan 15 Series D 55 Institutional Venture Partners (lead investor), Sequoia Capital, Greycroft Partners and IDG Capital Partners App data & analytics

Jan 15 Series C 30 Gimv, Partech and Elaia and BPI (investors), Bank of China, HSBC, BNPP and BPI (debt) Video SSP(1) Round is reported to be split $27million equity funding, $27million debt funding

(2) Round is reported to be split €12million equity funding, €6.5million debt funding(3) Round is reported to be split €12million equity funding, £10million debt fundingSource: Press Releases, Capital IQ, Mergermarket and Results analysis

(3)

(1)

(2)


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COMPANY OPERATING METRICS VALUATION METRICSPRICE ($) % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE GROWTH EBITDA MARGIN NET REVENUE EBITDA Revenues

(31-DEC-15) WEEK HIGH CAP CASH DEBT VALUE ($M) CY14-15 CY15-16 CY2015 CY2016 CY2015 CY2016 CY2015 CY2016ADTECHAdgorithms LTD 0.41 18.1% 27 35 (35) (7) 56.3% 65.0% 67.5% 58.7% n.m. n.m. n.m. n.m.Blinkx plc 0.25 42.0% 101 75 (75) 26 (11.1%) 3.7% (0.4%) 3.2% 0.3 x 0.3 x n.m. 8.8 xCriteo SA 39.60 69.1% 2,490 305 (290) 2,201 56.1% 26.0% 21.8% 24.8% 4.3 x 3.4 x 19.6 x 13.7 xCrossrider Plc 0.82 50.5% 120 78 (78) 42 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Marin Software Incorporated 3.58 41.5% 133 33 (30) 103 7.6% 5.7% (10.4%) 0.1% 1.0 x 0.9 x n.m. n.m.Matomy Media Group Ltd. 1.54 42.7% 144 43 15 159 0.8% 34.7% 22.1% 28.1% 2.4 x 1.8 x 11.1 x 6.5 xMaxPoint Interactive, Inc. 1.71 15.2% 45 49 (21) 23 33.8% 11.2% (20.0%) (27.7%) 0.3 x 0.3 x n.m. n.m.Opera Software ASA 5.71 47.8% 838 85 78 917 20.1% 20.4% 15.8% 18.3% 1.6 x 1.3 x 10.0 x 7.2 xRightster Group Plc 0.09 20.3% 34 12 (12) 22 70.1% 39.9% (71.6%) (19.3%) 1.0 x 0.7 x n.m. n.m.Rocket Fuel Inc. 3.49 20.7% 150 83 0 151 13.9% 2.6% (58.2%) (8.6%) 0.6 x 0.5 x n.m. n.m.Taptica International Ltd 0.92 35.3% 64 23 (23) 41 (2.0%) 52.5% 9.7% 25.0% 2.2 x 1.5 x 23.0 x 5.8 xThe Rubicon Project, Inc. 16.45 79.9% 798 80 (80) 718 76.3% 33.0% 3.9% 5.5% 3.3 x 2.4 x n.m. 44.5 xTremor Video, Inc. 2.06 62.9% 107 66 (66) 42 29.8% 27.0% (46.3%) (2.1%) 0.6 x 0.4 x n.m. n.m.TubeMogul, Inc. 13.60 57.9% 519 84 (83) 437 40.6% 28.7% (21.1%) (10.5%) 3.9 x 3.0 x n.m. n.m.YuMe, Inc. 3.51 55.0% 121 48 (48) 72 (11.5%) 3.6% (15.5%) (7.8%) 1.0 x 0.9 x n.m. n.m.MARTECHBazaarvoice, Inc. 4.38 46.6% 353 110 (53) 300 6.9% 8.4% (3.5%) 3.9% 1.5 x 1.4 x n.m. 35.8 xBrightcove Inc. 6.20 73.3% 203 24 (22) 180 6.8% 8.0% 5.0% 6.2% 1.4 x 1.2 x 26.9 x 20.1 xConstant Contact, Inc. 29.24 67.7% 981 181 (181) 801 11.2% 13.9% 19.7% 21.9% 2.2 x 1.9 x 11.0 x 8.7 xDemandware, Inc. 53.97 71.1% 2,132 183 (183) 1,949 45.9% 28.7% 7.8% 8.2% 8.3 x 6.5 x n.m. n.m.HubSpot, Inc. 56.31 93.7% 2,134 105 (104) 2,030 54.6% 33.7% (13.6%) (8.8%) 11.3 x 8.5 x n.m. n.m.Marketo, Inc. 28.71 80.6% 1,336 113 (106) 1,230 39.9% 32.1% (8.7%) (5.3%) 5.9 x 4.4 x n.m. n.m.New Relic, Inc. 36.43 90.8% 2,022 189 (189) 1,833 61.4% 37.9% (21.6%) (10.9%) 11.5 x 8.4 x n.m. n.m.Shopify Inc. 25.80 61.2% 2,339 187 (187) 2,152 86.4% 43.6% (1.0%) 2.7% 11.0 x 7.7 x n.m. n.m.DATAAcxiom Corporation 20.92 89.3% 1,658 181 28 1,686 (15.0%) (0.1%) 14.6% 16.0% 1.9 x 1.9 x 13.2 x 12.0 xAlliance Data Systems Corporation 276.57 88.6% 16,949 977 14,554 31,503 22.4% 12.2% 29.2% 29.4% 4.9 x 4.3 x 16.6 x 14.7 xExperian plc 17.71 95.0% 17,040 165 3,356 20,396 (3.8%) 1.6% 33.6% 34.5% 4.4 x 4.3 x 13.1 x 12.6 xTeradata Corporation 26.42 56.2% 3,514 874 (164) 3,350 (7.9%) (4.8%) 21.9% 24.0% 1.3 x 1.4 x 6.1 x 5.8 xDIVERSIFIED INTERNETAlphabet Inc. 778.01 97.4% 539,129 70,912 (62,415) 476,714 14.1% 17.0% 40.4% 44.4% 7.9 x 6.8 x 19.6 x 15.2 xAmazon.com, Inc. 675.89 97.0% 317,102 14,428 4,159 321,261 20.5% 20.9% 10.2% 11.3% 3.0 x 2.5 x 29.5 x 21.8 xeBay Inc. 27.48 41.2% 32,994 5,301 2,138 35,132 (2.9%) 4.8% 40.8% 41.2% 4.1 x 3.9 x 10.0 x 9.5 xFacebook, Inc. 104.66 94.6% 297,275 15,834 (15,708) 281,567 39.9% 37.8% 62.4% 61.3% 16.1 x 11.7 x 25.9 x 19.1 xYahoo! Inc. 33.26 65.5% 31,545 5,882 (4,632) 26,913 (8.3%) (4.0%) 8.0% 13.3% 6.7 x 7.0 x n.m. 52.1 x25th percentile (0.6%) 5.2% (12.0%) (3.7%) 1.3 x 1.3 x 11.0 x 8.7 xMedian 20.1% 20.4% 7.8% 8.2% 2.7 x 2.2 x 14.9 x 13.1 x75th percentile 43.3% 33.4% 21.9% 24.9% 5.6 x 4.4 x 22.1 x 19.8 x

AdTech & MarTech: Selected Publicly Traded Companies

Notes: Broker reports have been used for selected company financials – Liberium (Aug-15) for Adgorithms, Numis (May-15) for Blinkx, JP Morgan (Nov-15) for Criteo, Canaccord Genuity (Nov-15) for Matomy Media, William Blair (Nov-15) for MaxPoint Interactive, Cenkos (Oct-15) for Rightster, BMO Capital Markets (Nov-15) for Rocket Fuel, N+1 Singer (Sep-15) for Taptica, Jefferies (Dec-15) for The Rubicon Project, Jefferies (Nov-15) for Tremor Video, BMO Capital Markets (Aug-15) for TubeMogul, Deutsche Bank (Nov-15) for YuMe, RBC Capital Markets (Dec-15) for Alphabet and JP Morgan (Oct-15) for Yahoo!Note: Calendarised to December year end. Cap multiple at 20x EV/Revenue and 60x EV/EBITDA. Net debt is inclusive of minority interest and preferred equity. Net revenues have been used where appropriateSources: Capital IQ, market data as of 31st December 2015


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