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2015 Tech M&A Monthly - Q1 Report

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Corum Group

The document is a quarterly report focusing on global technology mergers and acquisitions (M&A) for Q1 2015, detailing industry leadership, notable market trends, and transaction statistics. Key highlights include significant deals, market insights, and upcoming events pertaining to tech M&A, such as workshops and webcasts. It also provides detailed research on valuation multiples and transaction performance in various sectors within the technology landscape.

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1 Global Tech M&A Monthly Q1: 2015 Quarterly Report
2 A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world. He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the nation’s most active regional technology trade association. He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to Europe’s top technology firms A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success, including Power Planning. He is a frequent lecturer and author. Moderator Bruce Milne CEO Corum Group Ltd.
3 Agenda  Welcome  Field Report – e-MDs  Acquired by MDeverywhere/Marlin Equity Partners  Event Spotlights  Q1 2015 Research Report  Seller Conversation: Joe Sanda, Founder, Astute Solutions  Q&A
4 Field Report – e-MDs Nat Burgess President Corum Group Ltd. Dr. David Winn Founder, e-MDs
5 Market Spotlight Webcast – April 30 www.wfs.com
6 Upcoming Conference Schedule Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position, research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A event ever – participants have done over $1 trillion in transaction value. Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends, valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.” www.CorumGroup.com/Events Apr. 14: Atlanta – SUSO Apr. 15: Paris – MB Apr. 21: Barcelona – MB Apr. 22: Munich – MB Apr. 28: Kansas City – MB Apr. 29: St. Louis – MB Apr. 30: Manchester – MB May 19: Reston – MB May 20: Amsterdam – MB May 21: Cologne – MB May 22: Singapore – SUSO May 25: Melbourne – MB May 27: Sydney – MB May 28: Riga – MB Jun. 4: Denver – MB Jun. 4: Berlin – MB
7 Corum Research Report Elon Gasper Vice President, Director of Research Alina Soltys Associate Amber Stoner Senior Analyst Ivan Snook Analyst Yasmin Khodamoradi Analyst
8 Public Markets 0% 5% 10% 15% 20% 25% 30% Weekly Percentage Change NASDAQ S&P TECH Dow Jones
9 Start End Years Dotcom Bubble Oct. 11, 1990 Mar. 24, 2000 9.5 Postwar Boom Jun. 13, 1949 Aug. 2, 1956 7.1 That 70s Inflation Oct. 3, 1974 Nov. 28, 1980 6.2 Current Mar. 9, 2009 ? 6.1+ *Since the Great Depression. Source: S&P Capital IQ, The Associated Press Macro view: 4 Longest* Bull Market Runs
10 Quarterly Tech Sector Valuations 0.50 x 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:14 Q2:14 Q3:14 Q4:14 Q1:15 EV/Sales 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x 21.00 x Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:14 Q2:14 Q3:14 Q4:14 Q1:15 EV/EBITDA
11 Q1:2014 Q1: 2015 # of Transactions 819 1012 # of Mega Deals 19 11 Largest Deal $22B $4.8B Private Equity Deals 49 42 # VC backed Exits 158 159 % Cross Border Transactions 31% 34% % of Startup Acquisitions 12% 11% Average Life of Target 14 14 Corum Index
12 Mega Deals – Q1:2015 $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
13 Mega Deals – Q1:2015 Sold to Target: Wood Mackenzie [UK] Acquirer: Verisk Analytics Value: $2.8B - Energy market intelligence website and related consulting services provider $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
14 Mega Deals – Q1:2015 Sold to Target: Fundtech Acquirer: Davis + Henderson Corporation [Canada] Value: $1.25B - Develops transaction processing software and related electronic payment services for the financial services industry $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
15 Infrastructure Software Market Public Valuation Multiples 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x
16 Subsector Sales EBITDA Examples Network Management 3.94x 18.63x Storage & Hosting 2.13x 15.36x Security 6.85x 15.15x Endpoint 4.33x 19.29x IT Services Management 5.53x 14.18x Other 5.36x 16.26x Infrastructure Software Market
17 Sold to Target: Aruba Networks Acquirer: HP Value: $3B - Wireless mobility solutions Infrastructure Software Market: Mega Deals $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
18 Sold to Target: Blue Coat Systems Acquirer: Bain Capital Transaction Value: $2.4B - Enterprise cybersecurity, Web traffic management and mobile device security systems and SaaS - Previously acquired by Thoma Bravo in December 2011 for $1.3B, 2.2x sales multiple Infrastructure Software Market: Mega Deals $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
19 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Emerging Threats Acquirer: Proofpoint Transaction Value: $40M - Network anti-malware and threat detection SaaS and a downloadable open source actionable threats IDS/IPS and ETOpen ruleset - Adds research and intelligence capabilities to product portfolio
20 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Optenet S.A. [Spain] Acquirer: Allot Communications [Israel] Transaction Value: $12M - Web and email security, malware, firewall, endpoint integrity assurance and premises network security SaaS and services - Broadens security solutions portfolio
21 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Intellinx [Israel] Acquirer: Bottomline Technologies Transaction Value: $85M - Behavior tracking and keystroke analysis software and integration services - Adds comprehensive cyber fraud and risk management solutions
22 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Offspark [Holland] Acquirer: ARM [UK] Transaction Value: $1.9M - Makers of PolarSSL, enmeshed systems Transport Layer Security (TLS) solution for IoT - Marks the fifth IoT security transaction since the start of last year
23 Vertical Application Software Market Public Valuation Multiples 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x
24 Subsector Sales EBITDA Examples A/E/C 4.49x 16.42x Government 1.51x 10.44x Healthcare 3.81x 22.78x Financial Services 4.29x 15.36x Energy & Environment 3.03x 11.36x Real Estate 8.15x 30.20x Automotive 5.12x 25.04x Vertical Other 4.50x 15.04x Vertical Application Software Valuations
25 Vertical Application Software Market Deal Spotlights: Real Estate SaaS 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Channel Acquirer: Auction.com - Real estate liquidation, asset & workflow management SaaS Sold to Target: Rodacom [France] Acquirer: Concept Multimedia [France] - Real estate management software
26 Vertical Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: AlertMe [UK] Acquirer: British Gas [UK] Transaction Value: $100M - Sensor-based wireless home energy monitoring software and real-time online reporting SaaS - Britsh Gas is an operating subsidiary of Centrica plc Sold to Target: Distech Controls [Canada] Acquirer: Acuity Brands Transaction Value: $252M - Building energy management systems, software and mobile applications - Complements strategy to offer true end-to-end optimization of all aspects of the building
27 Vertical Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Skrill Holdings [UK] Acquirer: Optimal Payments [Isle of Man] Transaction Value: $927M - Online payments service, digital wallet intermediary within the online Forex brokerage community and across Europe - Adds significant international scale
28 Vertical Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Paydiant Acquirer: PayPal - Reported at $280 million - Cloud-based white label mobile wallet & payments solution . Sold to Target: WebPay Holdings [Japan] Acquirer: LINE Corp. [Japan] - Mobile and Web payments processing API
29 Vertical Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Sold to Target: Akcelerant Acquirer: Temenos [Switzerland] Transaction Value: $50M - Software and services provider for the financial industry Target: TwoFour Systems Acquirer: Broadridge Financial Transaction Value: $32M - Transaction processing software Sold to Target: IGEFI (dba Multifonds) [Luxembourg] Acquirer: Temenos [Switzerland] Transaction Value: $263M - Provider of fund and portfolio accounting, and investor servicing software
30 Vertical Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Drew Technologies Acquirer: Opus Inspection Transaction Value: $30M - Vehicle development, engineering, testing and diagnostic software - Now operates as a stand alone subsidiary of Opus inspection
31 Consumer Application Software Market Public Valuation Multiples 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x
32 Subsector Sales EBITDA Examples Entertainment 3.51x 25.28x Gaming 2.16x 11.64x Education 1.15x 17.62x Consumer Application Software Valuations
33 Consumer Application Software Market Deal Spotlights 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x Sold to Sold to Target: Endomondo [Denmark] Acquirer: Under Armour Transaction Value: $85M - Exercise tracking application & website Target: MyFitnessPal Acquirer: Under Armour Transaction Value: $475M - Exercise tracking application & website Sold to Target: FitStar Acquirer: FitBit - Exercise tracking wearable tech & application
34 Consumer Application Software Market Deal Spotlight 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x Sold to Target: Sunrise Atelier Acquirer: Microsoft Transaction Value: $100M - Mobile/Web calendar app - Complements last year’s acquisition of Accompli email app
35 Subsector Sales EBITDA Examples Developed 0.83x 9.16x Emerging 3.06x 15.08x IT Services Valuations
36 Public Valuation Multiples IT Services – Emerging Markets 0.40 x 0.90 x 1.40 x 1.90 x 2.40 x 2.90 x 3.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/S EV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 11.71 x 12.16 x 11.79 x 12.15 x 12.81 x 13.44 x 13.82 x 15.07 x 17.15 x 17.84 x 13.37 x 15.09 x 15.08 x EV/S 2.32 x 2.17 x 2.76 x 2.77 x 2.26 x 2.15 x 2.44 x 2.43 x 2.72 x 2.76 x 2.40 x 2.81 x 3.06 x
37 IT Services – Developed Markets Public Valuation Multiples 0.40 x 0.50 x 0.60 x 0.70 x 0.80 x 0.90 x 1.00 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 8.56 x 8.64 x 8.77 x 8.40 x 8.54 x 8.41 x 8.42 x 8.34 x 8.64 x 8.75 x 9.45 x 9.81 x 9.16 x EV/S 0.82 x 0.78 x 0.80 x 0.77 x 0.81 x 0.79 x 0.81 x 0.77 x 0.82 x 0.80 x 0.80 x 0.89 x 0.83 x
38 Sold to Target: Interxion [Denmark] Acquirer: TelecityGroup [UK] Value: $2.2B - Provides colocation & hosted services, managed IaaS in Europe - Additional geographic scope and financial scale for TelecityGroup IT Services – Mega Deals $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
39Source: Capital IQ & Corum Group 924 736 930 968 950 931 1037 1076 0 200 400 600 800 1000 1200 $0 $5 $10 $15 $20 $25 $30 $35 $40 2008 2009 2010 2011 2012 2013 2014 2015 (proj) Total Disclosed Deal Value ($bb) Total Number of Transactions IT Services – Annual M&A Activity See more info at www.wfs.com
40 IT Services – MS Dynamics Deals Public Valuation Multiples Target Acquirer Deal Value Target Country Acquirer Country Description $28M UK Netherlands Dynamics AX, NAV, CRM, GP, RMS and eCommerce solutions $12M USA Denmark Dynamics ERP, AX, SL, NAV, CRM, RMS and SharePoint solutions $5M USA USA Dynamics CRM solutions AX Excellence Undisclosed Singapore New Zealand Dynamics AX ERP integration and consulting services in Asia Pacific Undisclosed USA USA Dynamics CRM, Salesforce and HubSpot solutions Undisclosed Pakistan Pakistan Dynamics AX and RMS systems integration in Pakistan
41 IT Services – Developed Markets Public Valuation Multiples Sold to Target: Solstice Mobile Acquirer: St Ives Group Transaction Value: $36.5M - AppLauncher platform for mobile continuous delivery - Joins portfolio of 14 St Ives Group digital and marketing services companies
42 IT Services – Recent Deals Deal Spotlight Sold to Target: Scitor Corporation Acquirer: SAIC Transaction Value: $790M - IT Services primarily for federal, state and local government agencies - Will expand classified contracts within the intelligence sector - 1.3x Sales multiple & 10.6x EBITDA multiple
43 Public Valuation Multiples Internet Market 0.00 x 2.00 x 4.00 x 6.00 x 8.00 x 10.00 x 0.00 x 5.00 x 10.00 x 15.00 x 20.00 x 25.00 x 30.00 x 35.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 22.30 x 21.94 x 24.25 x 24.35 x 29.28 x 26.89 x 23.85 x 29.77 x 26.94 x 23.29 x 22.57 x 24.41 x 25.33 x EV/S 7.51 x 6.96 x 7.32 x 7.40 x 7.15 x 6.71 x 6.80 x 6.84 x 6.17 x 5.09 x 4.61 x 5.27 x 5.09 x
44 Subsector Sales EBITDA Examples Diversified Internet 5.34x 14.92x eCommerce 2.30x 28.47x Social Network 9.65x 25.11x Travel & Leisure 7.74x 30.34x Internet Valuations
45 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x Target: Bounty Labs Acquirer: Twitter Transaction Value: “Sizeable amount” rumored at $50-100M - Live streaming video mobile application for consumers Deal Spotlight Internet Market Sold to Target: Niche Acquirer: Twitter Transaction Value: Estimated $30-60M (Re/code) - Social media talent agency Sold to
46 Deal Spotlight Internet Market 0.00 x 2.00 x 4.00 x 6.00 x 8.00 x 10.00 x 0.00 x 5.00 x 10.00 x 15.00 x 20.00 x 25.00 x 30.00 x 35.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 22.30 x 21.94 x 24.25 x 24.35 x 29.28 x 26.89 x 23.85 x 29.77 x 26.94 x 23.29 x 22.57 x 24.41 x 25.33 x EV/S 7.51 x 6.96 x 7.32 x 7.40 x 7.15 x 6.71 x 6.80 x 6.84 x 6.17 x 5.09 x 4.61 x 5.27 x 5.09 x Sold to Target: Careerify [Canada] Acquirer: LinkedIn - Employee recruiting and retention SaaS Sold to Target: Intelligence Competence Center [Germany] Acquirer: XING [Germany] Transaction Value: $7.3M - Job search engine
47 Deal Spotlight Internet Market 0.00 x 2.00 x 4.00 x 6.00 x 8.00 x 10.00 x 0.00 x 5.00 x 10.00 x 15.00 x 20.00 x 25.00 x 30.00 x 35.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 22.30 x 21.94 x 24.25 x 24.35 x 29.28 x 26.89 x 23.85 x 29.77 x 26.94 x 23.29 x 22.57 x 24.41 x 25.33 x EV/S 7.51 x 6.96 x 7.32 x 7.40 x 7.15 x 6.71 x 6.80 x 6.84 x 6.17 x 5.09 x 4.61 x 5.27 x 5.09 x Sold to Target: Hunza [Japan] Acquirer: Mixi [Japan] Transaction Value: $95M - P2P ticket marketplace Sold to Target: MUSE & Co. [Japan] Acquirer: Mixi [Japan] Transaction Value: $15M - Fashion eCommerce
48 Horizontal Application Software Market Public Valuation Multiples 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x
49 Subsector Sales EBITDA Examples Business Intelligence 3.80x 23.56x Human Resources 6.48x 40.23x SCM 7.38x 20.61x Marketing & Ad Tech 2.21x 21.74x ERP 2.87x 14.74x CRM 2.48x 39.01 Horizontal Other 3.27x 33.34x Horizontal Application Software Valuations
50 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Horizontal Application Software Market Deal Spotlights Sold to Target: Aia Holding BV [Netherlands] Acquirer: Kofax Transaction Value: $19.5M - Customer communications management software
51 Horizontal Application Software Market Mega Deal Sold to Target: Kofax Acquirer: Lexmark International Transaction Value: $1B - Content and transaction management PaaS $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
52 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Horizontal Application Software Market Deal Spotlights Sold to Target: Playbook HR Acquirer: Intuit - Contractor workforce management SaaS for enterprises - Will help Intuit deliver a robust application, onboarding and compliance solution for on-demand marketplaces Sold to Target: HRsmart [Thoma Bravo] Acquirer: Deltek - Recruitment & workforce management SaaS
53 Horizontal Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Sold to Target: PowerPlan Acquirer: Thoma Bravo Transaction Value: Estimated $430M - Provides asset-focused ERP accounting software
54 Horizontal Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Sold to Target: eXelate [Israel] Acquirer: Nielsen Holdings Transaction Value: Estimated $195M - Customer data management and analytics SaaS for targeted marketing - Adds opportunity in the programmatic media ecosystem
55 Horizontal Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Sold to Target: Appfluent Acquirer: Attunity Transaction Value: $18M - BI analytics, data usage, data warehousing and Hadoop migration SaaS and software - Adds big data usage patterns analytics to its data transfer platform
56 Corum Research Report Elon Gasper Vice President, Director of Research Alina Soltys Associate Amber Stoner Senior Analyst Ivan Snook Analyst Yasmin Khodamoradi Analyst
57 2015 World Tech M&A Report  Register for digital access: www.corumgroup.com Peter Coffee Karl Popp Mukund Mohan Reese Jones
58 Nat Burgess President Corum Group Ltd. Seller Conversation Joe Sanda CEO/Founder Astute Solutions Recapitalized by RUBICON Technology Partners
59 Q&A  We welcome your questions!  Use Q&A window on right side  Submit to queue at any time  Ask “all panelists” – see “ask” option above text-entry box
60 Upcoming Conference Schedule Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position, research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A event ever – participants have done over $1 trillion in transaction value. Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends, valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.” www.CorumGroup.com/Events Apr. 14: Atlanta – SUSO Apr. 15: Paris – MB Apr. 21: Barcelona – MB Apr. 22: Munich – MB Apr. 28: Kansas City – MB Apr. 29: St. Louis – MB Apr. 30: Manchester – MB May 19: Reston – MB May 20: Amsterdam – MB May 21: Cologne – MB May 22: Singapore – SUSO May 25: Melbourne – MB May 27: Sydney – MB May 28: Riga – MB Jun. 4: Denver – MB Jun. 4: Berlin – MB
61 After the Deal – Celebration
62 www.corumgroup.com

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2015 Tech M&A Monthly - Q1 Report

  • 1. 1 Global Tech M&A Monthly Q1: 2015 Quarterly Report
  • 2. 2 A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world. He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the nation’s most active regional technology trade association. He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to Europe’s top technology firms A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success, including Power Planning. He is a frequent lecturer and author. Moderator Bruce Milne CEO Corum Group Ltd.
  • 3. 3 Agenda  Welcome  Field Report – e-MDs  Acquired by MDeverywhere/Marlin Equity Partners  Event Spotlights  Q1 2015 Research Report  Seller Conversation: Joe Sanda, Founder, Astute Solutions  Q&A
  • 4. 4 Field Report – e-MDs Nat Burgess President Corum Group Ltd. Dr. David Winn Founder, e-MDs
  • 5. 5 Market Spotlight Webcast – April 30 www.wfs.com
  • 6. 6 Upcoming Conference Schedule Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position, research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A event ever – participants have done over $1 trillion in transaction value. Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends, valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.” www.CorumGroup.com/Events Apr. 14: Atlanta – SUSO Apr. 15: Paris – MB Apr. 21: Barcelona – MB Apr. 22: Munich – MB Apr. 28: Kansas City – MB Apr. 29: St. Louis – MB Apr. 30: Manchester – MB May 19: Reston – MB May 20: Amsterdam – MB May 21: Cologne – MB May 22: Singapore – SUSO May 25: Melbourne – MB May 27: Sydney – MB May 28: Riga – MB Jun. 4: Denver – MB Jun. 4: Berlin – MB
  • 7. 7 Corum Research Report Elon Gasper Vice President, Director of Research Alina Soltys Associate Amber Stoner Senior Analyst Ivan Snook Analyst Yasmin Khodamoradi Analyst
  • 9. 9 Start End Years Dotcom Bubble Oct. 11, 1990 Mar. 24, 2000 9.5 Postwar Boom Jun. 13, 1949 Aug. 2, 1956 7.1 That 70s Inflation Oct. 3, 1974 Nov. 28, 1980 6.2 Current Mar. 9, 2009 ? 6.1+ *Since the Great Depression. Source: S&P Capital IQ, The Associated Press Macro view: 4 Longest* Bull Market Runs
  • 10. 10 Quarterly Tech Sector Valuations 0.50 x 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:14 Q2:14 Q3:14 Q4:14 Q1:15 EV/Sales 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x 21.00 x Q4:12 Q1:13 Q2:13 Q3:13 Q4:13 Q1:14 Q2:14 Q3:14 Q4:14 Q1:15 EV/EBITDA
  • 11. 11 Q1:2014 Q1: 2015 # of Transactions 819 1012 # of Mega Deals 19 11 Largest Deal $22B $4.8B Private Equity Deals 49 42 # VC backed Exits 158 159 % Cross Border Transactions 31% 34% % of Startup Acquisitions 12% 11% Average Life of Target 14 14 Corum Index
  • 12. 12 Mega Deals – Q1:2015 $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 13. 13 Mega Deals – Q1:2015 Sold to Target: Wood Mackenzie [UK] Acquirer: Verisk Analytics Value: $2.8B - Energy market intelligence website and related consulting services provider $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 14. 14 Mega Deals – Q1:2015 Sold to Target: Fundtech Acquirer: Davis + Henderson Corporation [Canada] Value: $1.25B - Develops transaction processing software and related electronic payment services for the financial services industry $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 15. 15 Infrastructure Software Market Public Valuation Multiples 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x
  • 16. 16 Subsector Sales EBITDA Examples Network Management 3.94x 18.63x Storage & Hosting 2.13x 15.36x Security 6.85x 15.15x Endpoint 4.33x 19.29x IT Services Management 5.53x 14.18x Other 5.36x 16.26x Infrastructure Software Market
  • 17. 17 Sold to Target: Aruba Networks Acquirer: HP Value: $3B - Wireless mobility solutions Infrastructure Software Market: Mega Deals $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 18. 18 Sold to Target: Blue Coat Systems Acquirer: Bain Capital Transaction Value: $2.4B - Enterprise cybersecurity, Web traffic management and mobile device security systems and SaaS - Previously acquired by Thoma Bravo in December 2011 for $1.3B, 2.2x sales multiple Infrastructure Software Market: Mega Deals $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 19. 19 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Emerging Threats Acquirer: Proofpoint Transaction Value: $40M - Network anti-malware and threat detection SaaS and a downloadable open source actionable threats IDS/IPS and ETOpen ruleset - Adds research and intelligence capabilities to product portfolio
  • 20. 20 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Optenet S.A. [Spain] Acquirer: Allot Communications [Israel] Transaction Value: $12M - Web and email security, malware, firewall, endpoint integrity assurance and premises network security SaaS and services - Broadens security solutions portfolio
  • 21. 21 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Intellinx [Israel] Acquirer: Bottomline Technologies Transaction Value: $85M - Behavior tracking and keystroke analysis software and integration services - Adds comprehensive cyber fraud and risk management solutions
  • 22. 22 Infrastructure Software Market Deal Spotlight 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 15.02 x 14.90 x 14.20 x 14.61 x 15.50 x 16.48 x 16.10 x 16.22 x 16.96 x 17.03 x 15.71 x 15.84 x 16.08 x EV/S 3.60 x 3.57 x 3.41 x 3.89 x 4.07 x 4.27 x 4.37 x 4.73 x 4.34 x 4.16 x 4.12 x 4.03 x 4.23 x Sold to Target: Offspark [Holland] Acquirer: ARM [UK] Transaction Value: $1.9M - Makers of PolarSSL, enmeshed systems Transport Layer Security (TLS) solution for IoT - Marks the fifth IoT security transaction since the start of last year
  • 23. 23 Vertical Application Software Market Public Valuation Multiples 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x
  • 24. 24 Subsector Sales EBITDA Examples A/E/C 4.49x 16.42x Government 1.51x 10.44x Healthcare 3.81x 22.78x Financial Services 4.29x 15.36x Energy & Environment 3.03x 11.36x Real Estate 8.15x 30.20x Automotive 5.12x 25.04x Vertical Other 4.50x 15.04x Vertical Application Software Valuations
  • 25. 25 Vertical Application Software Market Deal Spotlights: Real Estate SaaS 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Channel Acquirer: Auction.com - Real estate liquidation, asset & workflow management SaaS Sold to Target: Rodacom [France] Acquirer: Concept Multimedia [France] - Real estate management software
  • 26. 26 Vertical Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: AlertMe [UK] Acquirer: British Gas [UK] Transaction Value: $100M - Sensor-based wireless home energy monitoring software and real-time online reporting SaaS - Britsh Gas is an operating subsidiary of Centrica plc Sold to Target: Distech Controls [Canada] Acquirer: Acuity Brands Transaction Value: $252M - Building energy management systems, software and mobile applications - Complements strategy to offer true end-to-end optimization of all aspects of the building
  • 27. 27 Vertical Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Skrill Holdings [UK] Acquirer: Optimal Payments [Isle of Man] Transaction Value: $927M - Online payments service, digital wallet intermediary within the online Forex brokerage community and across Europe - Adds significant international scale
  • 28. 28 Vertical Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Paydiant Acquirer: PayPal - Reported at $280 million - Cloud-based white label mobile wallet & payments solution . Sold to Target: WebPay Holdings [Japan] Acquirer: LINE Corp. [Japan] - Mobile and Web payments processing API
  • 29. 29 Vertical Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Sold to Target: Akcelerant Acquirer: Temenos [Switzerland] Transaction Value: $50M - Software and services provider for the financial industry Target: TwoFour Systems Acquirer: Broadridge Financial Transaction Value: $32M - Transaction processing software Sold to Target: IGEFI (dba Multifonds) [Luxembourg] Acquirer: Temenos [Switzerland] Transaction Value: $263M - Provider of fund and portfolio accounting, and investor servicing software
  • 30. 30 Vertical Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 14.92 x 14.86 x 15.39 x 15.64 x 15.35 x 15.53 x 14.60 x 14.96 x 15.43 x 15.37 x 14.77 x 15.28 x 15.99 x EV/S 3.86 x 3.82 x 4.00 x 4.02 x 3.94 x 3.89 x 3.67 x 3.97 x 4.01 x 3.92 x 3.61 x 4.01 x 3.97 x Sold to Target: Drew Technologies Acquirer: Opus Inspection Transaction Value: $30M - Vehicle development, engineering, testing and diagnostic software - Now operates as a stand alone subsidiary of Opus inspection
  • 31. 31 Consumer Application Software Market Public Valuation Multiples 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x
  • 32. 32 Subsector Sales EBITDA Examples Entertainment 3.51x 25.28x Gaming 2.16x 11.64x Education 1.15x 17.62x Consumer Application Software Valuations
  • 33. 33 Consumer Application Software Market Deal Spotlights 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x Sold to Sold to Target: Endomondo [Denmark] Acquirer: Under Armour Transaction Value: $85M - Exercise tracking application & website Target: MyFitnessPal Acquirer: Under Armour Transaction Value: $475M - Exercise tracking application & website Sold to Target: FitStar Acquirer: FitBit - Exercise tracking wearable tech & application
  • 34. 34 Consumer Application Software Market Deal Spotlight 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x Sold to Target: Sunrise Atelier Acquirer: Microsoft Transaction Value: $100M - Mobile/Web calendar app - Complements last year’s acquisition of Accompli email app
  • 35. 35 Subsector Sales EBITDA Examples Developed 0.83x 9.16x Emerging 3.06x 15.08x IT Services Valuations
  • 36. 36 Public Valuation Multiples IT Services – Emerging Markets 0.40 x 0.90 x 1.40 x 1.90 x 2.40 x 2.90 x 3.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/S EV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 11.71 x 12.16 x 11.79 x 12.15 x 12.81 x 13.44 x 13.82 x 15.07 x 17.15 x 17.84 x 13.37 x 15.09 x 15.08 x EV/S 2.32 x 2.17 x 2.76 x 2.77 x 2.26 x 2.15 x 2.44 x 2.43 x 2.72 x 2.76 x 2.40 x 2.81 x 3.06 x
  • 37. 37 IT Services – Developed Markets Public Valuation Multiples 0.40 x 0.50 x 0.60 x 0.70 x 0.80 x 0.90 x 1.00 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 8.56 x 8.64 x 8.77 x 8.40 x 8.54 x 8.41 x 8.42 x 8.34 x 8.64 x 8.75 x 9.45 x 9.81 x 9.16 x EV/S 0.82 x 0.78 x 0.80 x 0.77 x 0.81 x 0.79 x 0.81 x 0.77 x 0.82 x 0.80 x 0.80 x 0.89 x 0.83 x
  • 38. 38 Sold to Target: Interxion [Denmark] Acquirer: TelecityGroup [UK] Value: $2.2B - Provides colocation & hosted services, managed IaaS in Europe - Additional geographic scope and financial scale for TelecityGroup IT Services – Mega Deals $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 39. 39Source: Capital IQ & Corum Group 924 736 930 968 950 931 1037 1076 0 200 400 600 800 1000 1200 $0 $5 $10 $15 $20 $25 $30 $35 $40 2008 2009 2010 2011 2012 2013 2014 2015 (proj) Total Disclosed Deal Value ($bb) Total Number of Transactions IT Services – Annual M&A Activity See more info at www.wfs.com
  • 40. 40 IT Services – MS Dynamics Deals Public Valuation Multiples Target Acquirer Deal Value Target Country Acquirer Country Description $28M UK Netherlands Dynamics AX, NAV, CRM, GP, RMS and eCommerce solutions $12M USA Denmark Dynamics ERP, AX, SL, NAV, CRM, RMS and SharePoint solutions $5M USA USA Dynamics CRM solutions AX Excellence Undisclosed Singapore New Zealand Dynamics AX ERP integration and consulting services in Asia Pacific Undisclosed USA USA Dynamics CRM, Salesforce and HubSpot solutions Undisclosed Pakistan Pakistan Dynamics AX and RMS systems integration in Pakistan
  • 41. 41 IT Services – Developed Markets Public Valuation Multiples Sold to Target: Solstice Mobile Acquirer: St Ives Group Transaction Value: $36.5M - AppLauncher platform for mobile continuous delivery - Joins portfolio of 14 St Ives Group digital and marketing services companies
  • 42. 42 IT Services – Recent Deals Deal Spotlight Sold to Target: Scitor Corporation Acquirer: SAIC Transaction Value: $790M - IT Services primarily for federal, state and local government agencies - Will expand classified contracts within the intelligence sector - 1.3x Sales multiple & 10.6x EBITDA multiple
  • 43. 43 Public Valuation Multiples Internet Market 0.00 x 2.00 x 4.00 x 6.00 x 8.00 x 10.00 x 0.00 x 5.00 x 10.00 x 15.00 x 20.00 x 25.00 x 30.00 x 35.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 22.30 x 21.94 x 24.25 x 24.35 x 29.28 x 26.89 x 23.85 x 29.77 x 26.94 x 23.29 x 22.57 x 24.41 x 25.33 x EV/S 7.51 x 6.96 x 7.32 x 7.40 x 7.15 x 6.71 x 6.80 x 6.84 x 6.17 x 5.09 x 4.61 x 5.27 x 5.09 x
  • 44. 44 Subsector Sales EBITDA Examples Diversified Internet 5.34x 14.92x eCommerce 2.30x 28.47x Social Network 9.65x 25.11x Travel & Leisure 7.74x 30.34x Internet Valuations
  • 45. 45 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 2.60 x 2.80 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 10.82 x 7.99 x 7.42 x 9.70 x 9.44 x 10.37 x 11.60 x 12.33 x 11.64 x 12.26 x 12.19 x 12.47 x 12.76 x EV/S 2.47 x 2.23 x 2.24 x 2.62 x 2.57 x 2.65 x 2.41 x 2.31 x 2.32 x 2.31 x 2.21 x 2.18 x 2.16 x Target: Bounty Labs Acquirer: Twitter Transaction Value: “Sizeable amount” rumored at $50-100M - Live streaming video mobile application for consumers Deal Spotlight Internet Market Sold to Target: Niche Acquirer: Twitter Transaction Value: Estimated $30-60M (Re/code) - Social media talent agency Sold to
  • 46. 46 Deal Spotlight Internet Market 0.00 x 2.00 x 4.00 x 6.00 x 8.00 x 10.00 x 0.00 x 5.00 x 10.00 x 15.00 x 20.00 x 25.00 x 30.00 x 35.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 22.30 x 21.94 x 24.25 x 24.35 x 29.28 x 26.89 x 23.85 x 29.77 x 26.94 x 23.29 x 22.57 x 24.41 x 25.33 x EV/S 7.51 x 6.96 x 7.32 x 7.40 x 7.15 x 6.71 x 6.80 x 6.84 x 6.17 x 5.09 x 4.61 x 5.27 x 5.09 x Sold to Target: Careerify [Canada] Acquirer: LinkedIn - Employee recruiting and retention SaaS Sold to Target: Intelligence Competence Center [Germany] Acquirer: XING [Germany] Transaction Value: $7.3M - Job search engine
  • 47. 47 Deal Spotlight Internet Market 0.00 x 2.00 x 4.00 x 6.00 x 8.00 x 10.00 x 0.00 x 5.00 x 10.00 x 15.00 x 20.00 x 25.00 x 30.00 x 35.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 22.30 x 21.94 x 24.25 x 24.35 x 29.28 x 26.89 x 23.85 x 29.77 x 26.94 x 23.29 x 22.57 x 24.41 x 25.33 x EV/S 7.51 x 6.96 x 7.32 x 7.40 x 7.15 x 6.71 x 6.80 x 6.84 x 6.17 x 5.09 x 4.61 x 5.27 x 5.09 x Sold to Target: Hunza [Japan] Acquirer: Mixi [Japan] Transaction Value: $95M - P2P ticket marketplace Sold to Target: MUSE & Co. [Japan] Acquirer: Mixi [Japan] Transaction Value: $15M - Fashion eCommerce
  • 48. 48 Horizontal Application Software Market Public Valuation Multiples 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x
  • 49. 49 Subsector Sales EBITDA Examples Business Intelligence 3.80x 23.56x Human Resources 6.48x 40.23x SCM 7.38x 20.61x Marketing & Ad Tech 2.21x 21.74x ERP 2.87x 14.74x CRM 2.48x 39.01 Horizontal Other 3.27x 33.34x Horizontal Application Software Valuations
  • 50. 50 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Horizontal Application Software Market Deal Spotlights Sold to Target: Aia Holding BV [Netherlands] Acquirer: Kofax Transaction Value: $19.5M - Customer communications management software
  • 51. 51 Horizontal Application Software Market Mega Deal Sold to Target: Kofax Acquirer: Lexmark International Transaction Value: $1B - Content and transaction management PaaS $1.0B $1.0B HORIZONTAL $1.4B $1.4B INTERNET $16B INFRASTRUCTURE $2.4B $3.0B $3.0B $4.8B $2.8B $6.6B VERTICAL $2.8B $1.3B $2.5B $2.2B $2.2B IT SERVICES
  • 52. 52 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Horizontal Application Software Market Deal Spotlights Sold to Target: Playbook HR Acquirer: Intuit - Contractor workforce management SaaS for enterprises - Will help Intuit deliver a robust application, onboarding and compliance solution for on-demand marketplaces Sold to Target: HRsmart [Thoma Bravo] Acquirer: Deltek - Recruitment & workforce management SaaS
  • 53. 53 Horizontal Application Software Market Deal Spotlights 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Sold to Target: PowerPlan Acquirer: Thoma Bravo Transaction Value: Estimated $430M - Provides asset-focused ERP accounting software
  • 54. 54 Horizontal Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Sold to Target: eXelate [Israel] Acquirer: Nielsen Holdings Transaction Value: Estimated $195M - Customer data management and analytics SaaS for targeted marketing - Adds opportunity in the programmatic media ecosystem
  • 55. 55 Horizontal Application Software Market Deal Spotlight 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x EV/SEV/EBITDA Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EV/EBITDA 18.35 x 17.93 x 18.49 x 18.38 x 17.32 x 17.52 x 17.21 x 19.04 x 18.44 x 18.78 x 17.51 x 17.58 x 19.79 x EV/S 3.71 x 3.57 x 3.57 x 3.96 x 3.57 x 3.66 x 3.33 x 3.33 x 3.31 x 3.43 x 3.57 x 3.57 x 3.67 x Sold to Target: Appfluent Acquirer: Attunity Transaction Value: $18M - BI analytics, data usage, data warehousing and Hadoop migration SaaS and software - Adds big data usage patterns analytics to its data transfer platform
  • 56. 56 Corum Research Report Elon Gasper Vice President, Director of Research Alina Soltys Associate Amber Stoner Senior Analyst Ivan Snook Analyst Yasmin Khodamoradi Analyst
  • 57. 57 2015 World Tech M&A Report  Register for digital access: www.corumgroup.com Peter Coffee Karl Popp Mukund Mohan Reese Jones
  • 58. 58 Nat Burgess President Corum Group Ltd. Seller Conversation Joe Sanda CEO/Founder Astute Solutions Recapitalized by RUBICON Technology Partners
  • 59. 59 Q&A  We welcome your questions!  Use Q&A window on right side  Submit to queue at any time  Ask “all panelists” – see “ask” option above text-entry box
  • 60. 60 Upcoming Conference Schedule Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position, research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A event ever – participants have done over $1 trillion in transaction value. Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends, valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.” www.CorumGroup.com/Events Apr. 14: Atlanta – SUSO Apr. 15: Paris – MB Apr. 21: Barcelona – MB Apr. 22: Munich – MB Apr. 28: Kansas City – MB Apr. 29: St. Louis – MB Apr. 30: Manchester – MB May 19: Reston – MB May 20: Amsterdam – MB May 21: Cologne – MB May 22: Singapore – SUSO May 25: Melbourne – MB May 27: Sydney – MB May 28: Riga – MB Jun. 4: Denver – MB Jun. 4: Berlin – MB
  • 61. 61 After the Deal – Celebration

Editor's Notes

  • #9: Apr 11, 2014 – Apr 2, 2015 All three indices we track experienced ups and downs in March. S&P and Nasdaq showed quarterly gains. Dollar continued to strengthen to euro, healthcare and energy companies stocks retreated, crude oil prices decreased and some concerns about recovering economy lead to indices fluctuation.
  • #16: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #20: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #21: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #22: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #23: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #24: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #26: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #27: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #28: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #29: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #30: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #31: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #32: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #34: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #35: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #37: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #40: Turning now to the annual M&A activity tracked back to 2008 when we had hit a record of $35b in transactions; this last year in 2014 we ended up beating the total transaction count, recording over 1000 transactions. This tracks very closely to both public market performance as well as the broader tech M&A cycle with a strong rebound seen this year, 57% increase in total deal value YoY An important distringtion to note though, is the lagging effect IT Services has had agains the general M&A cycle
  • #44: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #46: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #47: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #48: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #49: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #51: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #53: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #54: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #55: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #56: Now, let’s turn to the Corum Index on deals – valuations, volume, structures, …etc.. This report is done monthly for six major sectors and quarterly for all 26 markets. It’s presented at our online M&A Monthlies which are broadcast to 36 countries the second Thursday at 10 a.m. Pacific Mountain Time. How many of you have attended one of these monthly or quarterly events? (See a show of hands – usually not more than 20%.) Well, if you’re serious about selling in the next year or two, I would urge you to tune in to these broadcasts. They have all the latest information on valuations, deal structures, who’s selling, plus special market reports, and insider presentations on trends that you need to know to best position for optimal value. Further, we have guest speakers – recent headliners, buyers, or CEOs who have just sold and give you the lowdown on what it’s like in the M&A trenches right now. Here’s the latest Corum Index. [NEW COPY NEEDED] By the way, an example of the full 26 market report is in the annual report. (Have them pull that back up) Everyone open up to the market sections to see more detail. There are also special reports by Corum Staff – considered world experts in the major trends.
  • #62: We’ve reached the end. The celebration part. Selling software, IT and related technology companies is very satisfying. You become close to your clients after such an intense process. Unfortunately, the closings are often very anti-climactic. Ending with a whimper with some government filing, a wire transfer, the parties scattered across the globe. That why once a year we take our clients who successfully sold to Langara in the gulf of Alaska – we’ve been doing this for 23 years. You can more about these trips, and comments from those company owners like you who have attended. So, I’ll close by simply inviting you to go fishing with us. Thank you for your time today.