Tech M&A Monthly: Forecast 2018 Global Tech M&A Report - Part 1

1
Forecast 2018:
Global Tech M&A Report
January 18, 2018
Thoughts? Questions?
Let us know!
@CorumGroup

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.
Welcome
Bruce Milne
CEO
Corum Group Ltd.

3
Agenda
Welcome
Field Reports
2018 Predictions & 2017 Scorecard
Top 10 Disruptive Tech Trends
Annual Research Report
Luminary Panel
Q&A
Peter Coffee – Salesforce
Ed Gardner – Descartes
Reese Jones – Singularity University
Henry Hu – IBM

4
Timothy joined Corum in 2011, and oversees the company’s marketing efforts globally from the headquarters near
Seattle. Chief among these is Corum's extensive conference schedule, “Selling Up, Selling Out,” the Merge Briefing,
the Tech M&A Monthly webcast and Corum's platinum sponsorship of the World Financial Symposiums' live events
and Market Spotlight series. Through these events, Corum Group serves as the world’s leading educator in
technology mergers and acquisitions.
Prior to joining Corum, Timothy served as marketing and product manager for GIS software startup Depiction, Inc.,
and previously worked in marketing for VizX Labs, a pioneering SaaS startup delivering DNA analysis tools. In
addition to marketing for software startups, Tim has worked for a US Senate campaign and taught science in Rio de
Janeiro.
Timothy graduated Magna Cum Laude from Bethel University in St. Paul, Minnesota, with degrees in History and
Biology.
Moderator
Timothy Goddard
EVP, Marketing
Corum Group Ltd.

5
Field Report:
Lending Manager
Rob Schram
Senior Vice President
Corum Group Ltd.
Rob has over 30 years of executive and entrepreneurial experience in multiple technologies: Integrated circuit testing,
industrial process automation and control, communications software, security software, and energy software and
services.
Rob has founded and sold several companies and engaged in two IPOs. He was most recently CEO of Evergreen Fuel
Technologies, Inc. in the energy sector. Rob is a broadly skilled strategic development professional with a proven
reputation for targeting, negotiating and developing profitable ventures and a demonstrated ability to successfully analyze
an organization's critical business requirements, identify deficiencies and opportunities, and develop innovative and cost-
effective solutions for enhancing competitiveness, increasing revenues, and improving customer relationships.

6
Field Report:
Visual Components and Stabiplan
Jon joined Corum in 2010 out of their Seattle headquarters and is now based in Amsterdam. He has close to 30 years experience
serving high technology companies with the last 20 mainly in chief operating and chief executive roles. During this time Jon has
become known for his ability to successfully integrate strategies and tactics into well executed operating plans, building strong teams
and achieving excellent results.
Jon has served as President and CEO of The PowerTech Group, a security and compliance software company sold to Help/Systems
in 2008, and Microserv Technology Services, a nationwide tech services company which was acquired by Halifax Corporation in
2003. Earlier he served as President and COO of Traveling Software, a leading developer of communications software in Seattle.
Prior to his operating roles Jon held vice president roles in sales, marketing and business development for technology companies.
Jon has taught in the software product management program at the University of Washington and holds a business administration
degree from San Francisco State University.
Jon Scott
Managing Director
Corum Group Intl.

7
Field Report:
Infian
Daniel Bernstein
Corum Group Ltd.
Daniel Bernstein has worked in a number of roles over a twenty year career in high technology, most recently as the
founder and CEO of Sandlot Games Corporation, a leading casual games publisher and developer. Having sold Sandlot
Games to Digital Chocolate in 2011, Daniel started a small games studio and a consulting practice where he advises larger
companies such as RealNetworks and smaller high growth businesses on product development, strategic initiatives, and
M&A opportunities.
Prior to Sandlot Games, Daniel Bernstein held director level positions in companies such as Wild Tangent and Monolith. An
accomplished composer, Daniel also writes music for most of the games he works on.
Daniel holds a BS in Computer Science and an MA in Music Composition from the University of Virginia.

8
Corum 2017 Prediction Scorecard
0 GE will extend its shopping spree, breaking into the top three tech
company acquirers.
0 More blockchain-related acquisitions by fintech and traditional
finance firms.
4 Sovereign funds will cut out the middleman stepping into a more
direct role in tech M&A.
8 Repatriation leads to multiple acquisitions of US “unicorn” tech firms.
10 Industrial sector follows GE & Siemens into tech M&A including IoT,
SCM & related deals.
10 Major AI players will make notable acquisitions in data security.
10 More major tech firms make a move into the connected car space.
10 Amazon will make an unusual acquisition.

9
Corum 2017 Prediction Scorecard
0 GE will extend its shopping spree, breaking into the top three tech
company acquirers.
0 More blockchain-related acquisitions by fintech and traditional
finance firms.
4 Sovereign funds will cut out the middleman stepping into a more
direct role in tech M&A.
8 Repatriation leads to multiple acquisitions of US “unicorn” tech firms.
10 Industrial sector follows GE & Siemens into tech M&A including IoT,
SCM & related deals.
10 Major AI players will make notable acquisitions in data security.
10 More major tech firms make a move into the connected car space.
11 Amazon will make an unusual acquisition.

10
2018 Predictions
 Amazon will make a major healthcare
acquisition.
 Uber down round drives other unprofitable
unicorn valuations.
 Chinese buyers return to the market with
major deals.
 Big-name old-line companies make first major
tech acquisitions.
Let us know!
@CorumGroup

11
2018 Predictions
 More chip flaws surface, leading to M&A in
response.
 Enterprise blockchain applications begin
demonstrating value, increasing related M&A.
 Arab money leads unexpected major tech
acquisition.
 Repatriation leads to multiple high-profile
companies acquired for >$10B.

12
Leveraging Corum’s Unique Position
Top 10 Disruptive
Technology Trends
1000s of
Buyer
Interactions
(Deals)
1000s of
companies
(Education)
1000s of
industry
transactions
(Research)

13
Corum Top Ten Technology Trends 2018
AI
Enablement
Composite
Commerce
IoT
Software
Digital Currency
Flow
Data Science
Monetization
Focused IT
Services
Smart
Logistics
Connected
Health
Regtech
Systems
Data
Security
CORECONTOUR
Let us know!
@CorumGroup

14
Ivan Ruzic has had a successful 30+ year career in the software business that has
included virtually every senior executive role. His resume spans marquee
companies such as BEA systems, Novell and Borland as well as multiple startups
including his own. His international experience is extensive and in addition to the
United States has been involved in mergers and acquisitions in Europe, Africa and
Asia.
His success and extensive experience qualify him as an expert in building value
and realizing wealth. Ivan joined Corum Group, the world’s leading software M&A
firm, with a specific focus on educating and helping prospective sellers maximize
the value of their technology companies.
Putting AI to work by means of big data and feedback
#1: AI Enablement
Corum Top Ten Disruptive Technology Trends 2018
Ivan Ruzic, Ph.D.
Vice President
Corum Group Ltd.

15
#1: AI Enablement
Putting AI to work by means of big data and feedback
 Machine learning systems
need data & feedback loops.
 Major AI platforms have
prioritized foundational
loops: search, language,
images, speech, etc.
 Significant value lies in
unexploited feedback loops
and unique datasets.
 Use cases exist across all
sectors, with deeper,
defensible niches more
valuable.

16
Jeff Riley
Vice President
Corum Group Ltd.
Jeff has over 25 years of large and small company experience in the technology industry,
focusing on enterprise software and IT services across a broad variety of vertical industries and
geographies.
In 2004, Jeff became CEO of Dinerware, a small restaurant software startup based in Seattle.
Under his leadership Dinerware grew rapidly, receiving numerous industry awards along the way.
After being listed on the Inc 5000 list of fastest growing private companies for four years in a row,
he led the successful sale of the company to Heartland Payment Systems which was later
acquired by Global Payments.
The first half of Jeff’s career was spent in product management and business development for
new products and capabilities within large technology companies including Digital Equipment, RR
Donnelley, and Microsoft. While at Microsoft, Jeff launched Microsoft’s first secure commerce
website in 1997, managed Microsoft Business Solutions SMB sales and marketing, and served as
integration lead for the Great Plains acquisition before being promoted to GM of Retail Business
Solutions within Dynamics.
He graduated from Babson College with a B.S. in Business Administration majoring in
Management Information Systems.
A new generation of online/offline convergence
#2: Composite Commerce

17
A new generation of online/offline convergence
#2: Composite Commerce
 Technology and traditional in-
person commerce has been
coalescing for decades.
 Amazon/Whole Foods
exemplified the phenomenon,
sparking new levels of
awareness—and deals.
 Force multiplier for:
 Online exchanges
 Omnichannel sales/marketing
 Visual intelligence systems
 Smart Logistics
 AR/VR
 Much more

18
Daniel Bernstein
Corum Group Ltd.
Daniel Bernstein has worked in a number of roles over a twenty year career in high
technology, most recently as the founder and CEO of Sandlot Games Corporation, a
leading casual games publisher and developer. Having sold Sandlot Games to Digital
Chocolate in 2011, Daniel started a small games studio and a consulting practice where
he advises larger companies such as RealNetworks and smaller high growth businesses
on product development, strategic initiatives, and M&A opportunities.
Prior to Sandlot Games, Daniel Bernstein held director level positions in companies such
as Wild Tangent and Monolith. An accomplished composer, Daniel also writes music for
most of the games he works on.
Daniel holds a BS in Computer Science and an MA in Music Composition from the
University of Virginia.
Emerging platforms, standards & analytics
#3: IoT Software

19
Emerging platforms, standards & analytics
#3: IoT Software
 Even in the Internet of Things,
the value of code outstrips
the value of hardware.
 Each ‘thing’ needs integrated
platforms, communication,
analytics, AI, security, etc.
 Competing platforms and
associated ecosystems are
beginning to coalesce.
 Defensible solutions to critical
problems provide a path to
significant M&A value.

20
Rob Griggs
Vice President
Corum Group Ltd.
As a serial entrepreneur and investment banker, Rob Griggs has had a successful 35+
year career in the high technology arena. Early in his career he was a top performer at
Apple before starting his first software company in the mid-1980’s. As a founder of
Authorware / MacroMedia, NetRadio, Wit Capital, and many other companies, Rob’s
sales, marketing, business development and capital raising skills have been honed over
supporting hundreds of company financial transactions during his career.
His success and extensive experience in software M&A uniquely qualify him as an expert
in building value and realizing wealth. Rob joined Corum Group, the world’s leading
software M&A firm, with a specific focus on educating and helping prospective sellers
maximize the value of their technology companies.
Decreasing friction in payments & exchange
#4: Digital Currency Flow

21
Decreasing friction in payments & exchange
#4: Digital Currency Flow
 Blockchain is grabbing headlines,
but the key to the trend is
decreasing transaction friction.
 Includes alternative currencies;
not just crypto, but in-game
tokens, Starbucks cards, airline
miles, other loyalty programs, etc.
 Digital transformation is driving
major consolidation in payments
space from megadeals on down.
 Small efficiency improvements
with potential to scale make
attractive M&A targets.

22
Entertainment software entrepreneur Jim Perkins is directly responsible for publishing
some of the industry’s biggest franchises, including Unreal, Duke Nukem, Wolfenstein,
Doom, Hunting Unlimited, and Driver. A well-known senior executive with a 22-year
track record of publishing such bestselling hits, he founded and grew two highly
successful software publishing companies (FormGen and ARUSH) from start-ups to
multi-million dollar enterprises.
Jim also launched Radar Group, the first Transmedia Incubation Company to monetize
entertainment franchises across all media, including film and television. His success
and extensive experience in software production, marketing and public relations,
packaging, online and retail distribution and software M&A, uniquely qualify him as an
expert in building value and realizing wealth. Jim joined Corum Group, the world’s
leading software M&A firm, with a specific focus on educating and helping prospective
sellers maximize the value of their digital media companies.
Jim Perkins
Executive Vice President
Corum Group, Ltd.
Maximizing return with real-time analytics
#5: Data Science Monetization

23
Maximizing return with real-time analytics
#5: Data Science Monetization
 Proactive monetization is a more
valuable use of data science than
cost cutting & efficiency gains.
 Robust analytic tools are no longer
optional, especially for consumer-
facing companies.
 Game companies are leading the
way, with video ads close behind
and new opportunities in retail,
B2B value pricing, and beyond.
 In a world of freemium, free-to-play
and declining ad effectiveness,
proven ability to turn users into
dollars is a valued asset.

24
Differentiation drives new value in a sleepy sector
#6: Focused IT Services
Peter Prince
Vice President
Corum Group Ltd.
Peter Prince has spent the last 27 years involved in starting and growing software
companies or large divisions of international software companies. As well as
following his entrepreneurial spirit he has held a number of senior roles for both
privately held and public companies. He was part of several key acquisitions such
as Software Artistry to IBM, Infinium to SSA GT and SSA Global to Golden Gate
(Infor). He was President of SSA Global EMEA prior to its sale and then CEO of
Cogniti.
Peter has a diverse background within the software industry spanning Operations,
Sales, Mergers and Acquisitions and Integration. He’s been retained by some of
the largest Private Equity firms in an advisory capacity.
Peter has also focused on investing both time and funding into start-up and young
companies over the recent years in a diverse range of sectors.
He attended Chiltern University attaining a business degree and later attended
Harvard Business School successfully completing an executive course, Launching
New Ventures.

25
Differentiation drives new value in a sleepy sector
#6: Focused IT Services
 Service firms specializing in a
technology, sector or problem
are seeing increased value.
 Intricate platforms require
particular expertise for
application, maintenance, and
extension of tech stacks.
 Buyers value deep domain
knowledge as a driver of
defensible long-term customer
relationships.
 Firms on the forefront of key
trends & high-value verticals
seeing particular interest.

26
Rob Schram
Corum Group Ltd.
Rob has over 30 years of executive and entrepreneurial experience in multiple
technologies: Integrated circuit testing, industrial process automation and control,
communications software, security software, and energy software and services.
Rob has founded and sold several companies and engaged in two IPOs. He was most
recently CEO of Evergreen Fuel Technologies, Inc. in the energy sector. Rob is a broadly
skilled strategic development professional with a proven reputation for targeting,
negotiating and developing profitable ventures and a demonstrated ability to successfully
analyze an organization's critical business requirements, identify deficiencies and
opportunities, and develop innovative and cost-effective solutions for enhancing
competitiveness, increasing revenues, and improving customer relationships.
Moving things & people with a new level of efficiency
#7: Smart Logistics

27
Moving things & people with a new level of efficiency
#7: Smart Logistics
 Movement of physical objects
must increasingly keep pace with
the movement of data.
 At the convergence of trends in
AI, latent capacity utilization,
ecommerce, consumer demand.
 Impact beyond traditional SCM,
in multiple verticals including:
 Transportation
 Manufacturing
 Construction
 Agriculture

28
Linking people to their health data & services
#8: Connected Health
Steve Jones
Vice President
Corum Group Ltd.
Steve joined Corum after 25 years of executive experience in various high-tech
industries with both public and private venture-backed startups. He has extensive
global experience, opening international markets and growing sales from zero to
tens of million in revenue. He has been on the forefront of selling several companies
and spinning off software divisions, highlighted by the sale of GetFon to Alestra
(AT&T Mexico). He is fluent in Spanish.
Steve was the founding CEO of Solera Networks, a real-time intrusion detection
security company. He also co-founded Auction Trust Network, an eCommerce
company for online exchanges; which he sold to MediaForge (Rakuten Marketing).
Steve is a board member of several software companies and has industry expertise
in several areas: enterprise apps and infrastructure, security, mobile and wireless,
media & entertainment, supply chain, and embedded devices/systems (IoT).

29
Linking people to their health services & data
#8: Connected Health
 Technical, regulatory and
demographic changes drive
shift from system-centric to
patient-centric health IT.
 Patients demand consumer-
grade connections to data
and providers.
 Providers need tools that
help them compete.
 Notable demand for
telemedicine, patient
engagement, mobility &
transparency solutions.

30
David Levine
Corum Group Ltd.
Dave joined Corum in 2015 and has a diverse background in technology and life
sciences. As an executive and entrepreneur, Dave has been operating and investing
in companies sitting at the convergence of commerce and eCommerce as well as
innovative life science businesses for over twenty-five years. Recently, Dave was
CEO North America for Gaxsys, an eCommerce and logistics company that is a
leader in last mile logistics and fulfillment for eCommerce marketplaces.
Dave has been on both sides of the mergers and acquisitions table having sold a life
science technology company, facilitated sell side and buy side technology transactions
and has also scaled multiple technology companies globally in the eCommerce, life
sciences and innovation intelligence markets. Dave sits on boards of public and
private companies including one company that recently filed for an IPO.
Dave holds a business degree from the Indiana University, Kelley School of Business.
Letting computers keep up with compliance
#9: Regtech Systems

31
Letting computers keep up with compliance
#9: Regtech Systems
 The complexity of dealing with
regulatory change is increasing.
 Rules in software becoming
intrinsic to laws, mandates &
agreements.
 Solution sets backed by legal
requirements draw significant
acquirer interest.
 Interconnected regulatory
systems make consolidation of
point solutions particularly
attractive.

32
Jon joined Corum in 2010 out of their Seattle headquarters and is now based in
Amsterdam. He has close to 30 years experience serving high technology companies
with the last 20 mainly in chief operating and chief executive roles. During this time Jon
has become known for his ability to successfully integrate strategies and tactics into well
executed operating plans, building strong teams and achieving excellent results.
Jon has served as President and CEO of The PowerTech Group, a security and
compliance software company sold to Help/Systems in 2008, and Microserv Technology
Services, a nationwide tech services company which was acquired by Halifax Corporation
in 2003. Earlier he served as President and COO of Traveling Software, a leading
developer of communications software in Seattle. Prior to his operating roles Jon held
vice president roles in sales, marketing and business development for technology
companies.
Jon has taught in the software product management program at the University of
Washington and holds a business administration degree from San Francisco State
University.
Jon Scott
Managing Director
Corum Group Intl.
Building barriers in an age of blurred lines
#10: Data Security

33
Building barriers in an age of blurred lines
#10: Data Security
 New technologies creating new
risks from freer flowing data.
 High impact breaches & attacks
(Equifax, Uber, WannaCry)
drive broad recognition of
security needs.
 Dominant trend is anti-malware,
especially automation and AI-
enabled tools.
 The Internet of Things opened
a new front, from IoT botnets to
hijacked smart speakers.

34
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Amanda Tallman
Senior Analyst
Becky Hill
Research Analyst
Patrick Cunningham
Research Analyst
Yasmin Khodamoradi
Director, Valuation Services
Let us know!
@CorumGroup

35
Public Markets 2017
Jan
2017
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0%
10%
20%
30%
40%
50%
60%
Weekly Percentage Change
S&P TECH Dow Jones NASDAQ
Jan
2018
USA 2017
S&P Tech 42%
NASDAQ 28%
Dow Jones 25%
Asia 2017
HANG SENG 36%
Nikkei 19%
SSE Composite 7%
Europe 2017
DAX 13%
CAC 40 9%
FTSE 100 8%

36
0%
50%
100%
150%
200%
250%
300%
350%
400%
450%
500% Daily Percentage Change
NASDAQ S&P TECH Dow Jones
The Bull Market, 2009-Present
2017
2009 2011 2013 2015 2017

37
Corum Index
Market
Transactions
20172016
3948 3441
Mega Deals
76 49
Largest Deal $39B $23B
Pipeline
2016 2017
Private Equity Deals
323 398
VC Backed Exits
543658
Attributes
20172016
35%
Cross Border
Transactions 39%
Start-Up
Acquisitions 12%12%
16 yrs15 yrs
Average Life
of Target
23%
13%
42%
17%
34%

38
Top Strategic Acquirers – 2017
32
27
18
13 13
12 12 12 12 12 12
11 11

39
32
27
18
13 13
12 12 12 12 12 12
11 11
Consolidators

40
32
27
18
13 13
12 12 12 12 12 12
11 11
Services

41
32
27
18
13 13
12 12 12 12 12 12
11 11
Tech Giants

42
32
27
18
13 13
12 12 12 12 12 12
11 11
Others

43
Buyer Leaderboard Rotation 2016 - 2017
Change 2016 2017
500% WiseTech 2 12
300% Atos 3 12
113% Constellation 15 32
83% Verisk Analytics 6 11
83% Alibaba 6 11
63% Apple 8 13
35% Accenture 20 27
36% General Electric 11 7
43% Alphabet 21 12
62% IBM 13 5
75% Verizon 12 3
83% Salesforce 12 2
90% Intel 10 1

44
Constellation Software Acquisitions 2017

45
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Top Private Equity Acquirers – 2017
38
28
23
21
17
16 16
15 15
14 14 14
13
12

46
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER

47
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Outfit7 [Slovenia]
Acquirer: Zhejiang Jinke Culture Industry [China]
Transaction Value: $1B
- Home entertainment mobile applications
Sold to

48
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Chewy.com [USA]
Acquirer: PetSmart [USA]
Transaction Value: $3.4B (reported)
- Online pet products marketplace
Sold to

49
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Aricent [KKR] [USA]
Acquirer: Altran Technologies [France]
Transaction Value: $2B (2.9x EV/Sales)
- System integration and engineering services with focus on IoT
Sold to

50
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Cayan [Parthenon Capital Partners] [USA]
Acquirer: TSYS [USA]
Transaction Value: $1.1B
- Payment solutions for physical stores, mobile and e-commerce
Sold to

51
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Gemalto NV [Netherlands]
Acquirer: Thales Group [France]
- Digital security products and services
Sold to

52
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Aconex [USA]
Acquirer: Oracle Corporation [Australia]
- Online collaboration platform for the construction industry
Sold to

53
Market Sectors
Horizontal Application
Software
Vertical Application
Software
Consumer Application
Software
Infrastructure
Software
Internet IT Services and BPO

54
3-Year Market Valuation Trends
5.00
10.00
15.00
20.00
25.00
30.00
35.00
EV/EBITDA

55
Horizontal Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
EV/EBITDA 18.39 x 17.98 x 17.31 x 18.71 x 19.46 x 20.61 x 19.56 x 19.85 x 19.84 x 20.36 x 21.12 x 20.23 x 20.56 x
EV/S 3.47 x 3.70 x 3.83 x 3.80 x 3.90 x 4.31 x 4.49 x 4.35 x 4.33 x 4.27 x 4.35 x 4.30 x 4.33 x
Public Valuation Multiples

56
Subsector Sales EBITDA Examples
Business
Intelligence
4.32x 21.44x
Marketing 4.24x 25.46x
CRM 2.90x 33.47x
ERP 4.76x 21.61x
Human
Resources
7.41x 36.50x
SCM 4.32x 22.45x
Payments 4.09x 17.34x
Other 3.76x 18.89x
Horizontal Application Software Valuations

57
Deal Spotlights: Analytics/BI
Target Acquirer
Target
Country
Acquirer
Country
Month Description
USA France April Big data analytics applications
USA USA April Networked business analytics platform
USA USA May AI-engine converting unstructured 'dark' data
Netherlands USA August AI-enabled big data analytics SaaS
Germany Germany September Realtime Decisioning Engine
USA USA October Web-based reporting and data visualization platform
USA Japan October Data intelligence applications
USA USA November Big data predictive solutions
USA USA December Proactive retention management solutions

58
Deal Spotlights: Sales Performance
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Sold to
Target: Xactly Corporation [USA]
Acquirer: Vista Equity Partners [USA]
Transaction value: $564M
- Sales performance, analytics and planning SaaS
Sold to
Target: Endeavor Commerce [USA]
Acquirer: Vendavo [USA]
- Guided selling and sales configuration solution
Sold to
Target: AlignStar [USA]
Acquirer: Xactly Corporation [Vista Equity Partners] [USA]
- Territory resource management software

59
Deal Spotlight: Social Media Customer Engagement
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Target: Digital Roots [USA]
Acquirer: Interactions [USA]
- AI-enabled social media management solution
- Bolsters Interactions social media engagement
- Adds to Interactions strong AI technology position
Sold to

60
Deal Spotlights: Smart Logistics
Target Acquirer
Target
Country
Acquirer
Country
Month Description
USA USA June
Fleet management, driver-safety, and telematics
solutions
USA Canada June Inventory control and management solutions
USA USA August
SaaS platform for accessing and managing local
deliveries
USA Canada August Cloud-based freight visibility platform
USA USA September Multimodal shipment visibility solutions
China China September Domestic delivery, logistics and warehousing services
Ireland USA October
Fleet management, vehicle tracking and telematics
software
USA USA November Channel data integrity and intelligence solutions
USA France December GPS fleet tracking and management technology

61
Deal Spotlight: Time Tracking
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Target: TSheets.com [USA]
Acquirer: Intuit [USA]
Transaction value: $340M
- Cloud-based time tracking and scheduling application
- TSheets to be re-branded into Time Capture
- Enhances QuickBooks ecosystem
Sold to

62
Deal Spotlights: Employee Training Software
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
EV/SEV/EBITDA
Target: Learning Seat [Australia]
Acquirer: Callidus Software [USA]
Transaction Value: $26M
- Adaptive training and compliance learning content platform
Target: Navis Learning [USA]
Acquirer: Simplify Compliance [Business & Legal Resources] [USA]
- Customized learning and development solutions
Sold to
Sold to

63
Vertical Application Software Market
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 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

64
A/E/C 6.52x 26.02x
Automotive 5.39x 19.16x
Energy &
Environment
4.89x 18.19x
Financial
Services
5.40x 18.22x
Government 2.29x 14.73x
Healthcare 4.43x 25.34x
Real Estate 6.77x 38.74x
Vertical Other 3.70x 14.68x
Vertical Application Software Valuations

65
Deal Spotlights: Patient Engagement
Target Acquirer Month Value Description
March $170M Speech-enabled patient engagement SaaS
April $34M
EHR, care coordination and medical outcomes
management SaaS
June $63M EHR for tracking patient care and outcomes
September $132M Medication therapy management solutions
October $90M Patient relationship management platform
October - Patient relationship management platform
December - Care coordination and outcome measurement platform

66
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 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
Deal Spotlights: Healthcare
Target: Kroll Computer Systems [Canada]
Acquirer: TELUS Corporation [Canada]
- Pharmacy management software
Target: Navicure [USA]
Acquirer: ZirMed [USA]
Transaction Value: $750M (estimated)
- Сloud-based claims management and patient payment solutions
Sold to
Sold to

67
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Aclara Technologies [Sun Capital Partners] [USA]
Acquirer: Hubbell [USA]
- Smart metering solutions to gas and electric utilities
Sold to

68
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 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
Deal Spotlights: Energy & Environment
Sold to
Target: EnerNOC [USA]
Acquirer: Enel [Italy]
- Demand response solutions and energy intelligence software
Sold to
Target: Aveva [United Kingdom]
Acquirer: Schneider Electric [France]
Transaction Value: $710M (reported)
- Engineering design and information management solutions
Sold to
Sold to
Target: REstore [Belgium]
Acquirer: Centrica [United Kingdom]
- Cloud-based demand side management software
Target: Comverge [Georgia]
Acquirer: Itron [USA]
- Intelligent energy management solutions

69
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Sold to
Target: Silver Spring Networks [USA]
Acquirer: Itron [USA]
Transaction Value: $1B (1.9x EV/Sales)
- Networking platform and solutions provider for smart energy networks

70
Deal Spotlights: Construction Software
Target Acquirer
Target
Country
Acquirer
Country
Month Description
USA Canada March
Electrical estimating, takeoff, service and project
management software
USA USA March ERP solutions to the home building industry
USA USA May Online peer-to-peer equipment rental platform
USA USA July Enterprise resource planning construction software
USA USA August Web-hosted construction collaboration software
United
Kingdom
Canada September Construction estimating software
USA USA October Construction information cloud-based platform
Sweden Sweden October
Project collaboration SaaS for the construction and
real estate industry
Australia USA December
Online collaboration platform for the construction
industry
USA USA December Estimating and project management software

71
Deal Spotlights: Autonomous Vehicle Tech
Target Acquirer
Target
Country
Acquirer
Country
Month Description
Germany Netherlands January Software for autonomous driving
USA USA February Sensor-based AI-enabled operation software
Germany France March Skeleton tracking and gesture recognition software
USA USA March Autonomous vehicles adoption through LiDAR solutions
Netherlands Germany August Self-driving vehicles simulation software
USA USA October Advanced unmanned systems and aerospace vehicles
USA USA October Automated driving software solution
USA USA October Lidar sensing devices

72
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Sold to
Target: Mobileye [Israel]
Acquirer: Intel [USA]
Transaction Value: $15.3B (41.0x EV/Sales and 117.6x EBITDA)
- EyeQ system-on-chip, semiconductors and related systems for automakers

73
Consumer Application Software Market
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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

74
Casual Gaming 4.22x 22.49x
Core Gaming 4.46x 13.16x
Other 0.99x N/A
Consumer Application Software Valuations

75
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Deal Spotlights: Chinese Tech Giants
Target: Space Ape [USA]
Acquirer: Supercell [Tencent Holdings] [Finland]
Transaction value: $55.8M
- Internet-based mobile and tablet games
Target: Ejoy Technology [China]
Acquirer: Alibaba [China]
- Internet games developer
Sold to
Sold to

76
Deal spotlights: Casual Gaming
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Target: FreeStyleGames [United Kingdom]
Acquirer: Ubisoft [France]
- Music rhythm based gaming
Target: Growtopia [Japan]
Acquirer: Ubisoft [France]
- Mobile and desktop gaming solutions
Sold to
Sold to

77
Deal Spotlight: Blockbuster Franchise
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Target: Digital Roots [USA]
Acquirer: Interactions [USA]
- AI-enabled social media management solution
- Bolsters Interactions social media engagement
- Adds to Interactions strong AI technology position
Sold to
Target: Respawn Entertainment [USA]
Acquirer: Electronic Arts [USA]
- Developer of fast-paced blockbuster FPS Titanfall
- EA outbid Nexon, co-publisher of Titanfall
Sold to

78
Deal Spotlights: Social Gaming
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Target: Plarium Global [Israel]
Acquirer: Aristocrat Leisure [Australia]
- Mobile and social video games including Vikings: War of Clans
- Aristocrat previously acquired social casino game maker Product Madness
Target: Rumble Entertainment [USA]
Acquirer: Plarium [Aristocrat] [Australia]
- Fantasy role-playing games
- Extends Plarium’s library of MMO strategy RPG titles
Sold to
Sold to

79
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Big Fish Games [USA]
Transaction Value: $990M (2.2x EV/Sales and 11.9x EBITDA)
- Developer and distributor of casual games
Target: Big Fish Games [USA]
Transaction Value: $990M (2.2x EV/Sales and 11.9x EBITDA)
- Developer and distributor of casual games
Sold to

80
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Deal Spotlights: Social Gaming
Sold to
Target: Spicerack Media [USA]
Acquirer: Scientific Games Corporation [USA]
- Mobile and social games available on Facebook and Amazon.com
Sold to
Target: NYX Gaming Group [USA]
Transaction Value: $607M (3.1x EBITDA)
- Digital gaming software
Sold to
Target: Red7Mobile [United Kingdom]
- Casino games and sports apps for the gambling industry
Sold to
Target: Lapis Software Associates [USA]
- Software for on-line lottery systems

81
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Deal Spotlights: AR/VR
Target: Owlchemy Labs [USA]
Acquirer: Google [USA]
- Virtual reality game developer
Target: Fitness AR [USA]
Acquirer: Mapbox [USA]
- AR-based application for visualizing runs, hikes and bike rides on a 3D image
Target: Drop Messages (IP assets) [USA]
Acquirer: Snap [USA]
- AR mobile application alerting to consumers when friends and photos are nearby
Sold to
Sold to
Sold to

82
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 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
Deal Spotlights: IoT/Wearables
Target: Knoton [USA]
Acquirer: Innovo Technology [Signature Devices Corporation] [USA]
- IoT devices and software for tracking health, pet’s location or a child
Sold to
Target: Tazer Mobile [dba Tazerwear] [USA]
Acquirer: Innovo Technology [Signature Devices Corporation] [USA]
- Android-based wearable devices with AI software for smart object recognition
Sold to

83
Target Acquirer
Target
Country
Month Description
United
Kingdom
March
Audio detection technology for the identification,
monitoring, and discovery of music
USA March
iPhone entertainment recommendation application
across streaming media and VoD services
USA April
Open media library that automatically connects
media to creator and metadata using blockchain
technology
France May
Online music search and AI-based recommendation
software for music publishers
Sweden November
Cloud-based audio recording platform enabling
collaboration and creation music and audio
Consumer Software Market
Deal Spotlights: Spotify

84
Internet Software Market
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
5.50 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
30.00 x
EV/SEV/EBITDA

85
Diversified
Internet
6.01x 27.44x
eCommerce 0.91x 29.47x
Social Network 6.29x 23.41x
Travel & Leisure 7.13x 30.25x
Internet Software Valuations

86
Target Acquirer
Target
Country
Acquirer
Country
Month Description
USA USA April Online art and craft instruction video workshops
USA USA April Platform for making interior design
USA USA May Online recipe recommendations and food delivery
USA Sweden September Marketplace for freelancers willing to run errands
USA USA September Meal-subscription service
USA USA October Online marketplace and product launch platform
USA USA December Internet-based grocery delivery service
Deal Spotlights: Composite Commerce

87
Target Acquirer
Target
Country
Month Description
USA March Online store that delivers pet products
USA April Online pet products marketplace
USA April
Mobile application that enables pet-owners take an advice
from verified vets, trainers and other pet experts
USA November Subscription service that sells puppy toys and treats online
Australia November
Online retailer of pet food, medication, accessories, toys, and
treats
Sweden November
Internet retail for pet food and other pet supplies and
accessories
Sweden November Online retailer of pet supplies
Deal Spotlights: Pets Retail

88
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Target: Vivid Seats [USA]
Acquirer: GTCR [USA]
Transaction Value: $1.6B (estimated)
- Online secondary ticketing marketplace to buy and sell tickets for
live sports, concert and theater events
Sold to

89
Target Acquirer
Target
Country
Value Description
USA - Web based ticketing platform with a la carte features
USA $16M Online ticketing solutions for events and venues
USA -
Ticketing applications that enable online ticket sales in
venues
USA - Online ticketing services and POS ticketing systems
USA - Online and mobile ticketing solutions
USA $200M Online tickets retailer
China $393M Retails online tickets for concerts, theater and other events
India $19M Online ticketing platform for entertainment activities
Israel $56M Event ticketing SaaS for entertainment and sports
Deal Spotlights: Ticketing

90
Target Acquirer
Target
Country
Acquirer
Country
Value Description
Denmark USA $550M
Online travel booking services for airlines, cruises, hotel
and car rentals
UK USA $407M Online travel services holding company
Israel
United
Kingdom
$64M
Search engine technologies and related services for
hotel booking
Bulgaria USA $35M Airfare pricing and shopping solutions
India India $28M Independent corporate travel services provider
Germany
United
Kingdom
$14M Online travel package booking portal
Switzerland
United
Kingdom
-
Meta-search engine for hotels and all types of
accommodations
USA China -
Travel services including accommodation reservation,
transportation ticketing etc.
Brazil USA - Search engine for tourist services
India USA - Online-offline travel portal
Greece Sweden - Online travel agency
Deal Spotlights: Travel Booking

91
Infrastructure Software Market
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
20.00 x
EV/SEV/EBITDA

92
Endpoint 4.09x 29.19
IT Services
Management
4.51x 13.51x
Network
Management
3.44x 11.04x
Security 4.56x 32.17x
Storage
& Hosting
3.01x 11.73x
Other 5.23x 14.74x

93
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
20.00 x
EV/SEV/EBITDA
Sold to
Sold to
Deal Spotlights: Endpoint Security and Backup
Target: Datacastle Corporation [USA]
Acquirer: Carbonite [USA]
- Enterprise endpoint backup and data protection solutions for the mobile workforce
Target: Invincea [USA]
Acquirer: Sophos [USA]
Transaction Value: $100M (12.2x EV/Sales)
- Malware threat detection, prevention, and pre-breach forensic intelligence

94
2017 Mega Deals
$62B$2B
$1.0B
$18B
IT SERVICES
HR BPO assets
Healthcare business
$1.3B
$2.6B
$2.0B
$1.6B
$2.0B
$1.0B
$2.8B
$4.3B
HORIZONTAL
$21B
$1.4B
$1.1B
$1.1B
$15B
INTERNET
$1.9B
$3.4B
$2.4B
$1.6B
$1.6B
$2.5B
$1.3B
INFRASTRUCTURE
$27B
$6.0B
$3.7B
$1.2B
$1.1B
$1.3B
$1.8B
$1.1B
$1.6B
$1.6B
$1.6B
$5.7B$5.3B
$10.4B
$1.7B
VERTICAL
$15.3B
$2.0B
$3.6B
$2.8B
$2.3B
$3.9B
$1.2B
$1.4B
$1.3B
$1.0B
$1.1B
$1.1B
$1.2B
$1.0B
$23B
$1.0B
CONSUMER
Sold to
Target: Barracuda Networks [USA]
Acquirer: Thoma Bravo [USA]
Transaction Value: $1.6B (4x EV/Sales)
- Data storage, disaster recovery, content and network security
Sold to

95
Target Acquirer
Deal
Value
Month Description
$5.7B December
Digital security products, including subscriber authentication
and rights management solutions
$200M September Multi-factor authentication and single sign-on solutions
$103M June
Cloud platform for building identity and IoT applications
$42M May
Automated machine identity provisioning software for
identifying and authorize specific users and jobs
- March
Cloud-based identity and access management solutions,
single sign-on, password management and analytics
- November Centralized identity and access right management software
Deal Spotlights: Identity and Access Management

96
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
20.00 x
EV/SEV/EBITDA
Deal Spotlights: Web Browsing Security
Sold to
Sold to
Sold to
Target: Evidon [USA]
Acquirer: Crownpeak Technology [K1 Investment Management] [USA]
Transaction Value: $50M (estimated)
- Digital governance solutions for privacy and data protection
Target: Weblife Balance [USA]
Acquirer: Proofpoint [USA]
- SaaS for anonymous and protected web browsing by proxying user’s activity
Target: SurfEasy [Opera Software ASA] [Canada]
Acquirer: Symantec Corporation [USA]
Transaction Value: $38.5M
- Virtual private network security application for protecting personal online privacy and security

97
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
20.00 x
EV/SEV/EBITDA
Deal Spotlights: Open Source
Sold to
Sold to
Sold to
Target: Restlet [France]
Acquirer: Talend [USA]
- SAS API lifecyle-management platform for Java-based Web application development
Target: Atollic [Sweden]
Acquirer: STMicroelectronics [Switzerland]
- ARM-based integrated development environment software for microcontrollers
Target: Tesora [USA]
Acquirer: Stratoscale [Israel]
- Database-as-a-Service platform for administrators and DevOps

98
Deal Spotlight: Enterprise Mobility, Device Management
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
20.00 x
EV/SEV/EBITDA
Target: SkyGiraffe [USA]
Acquirer: ServiceNow [USA]
- Cloud-based workflow platform
- Follows the purchase of design studio Telepathy for its enterprise-class
functionalities
Sold to

99
Deal Spotlight: Enterprise Mobility, Device Management
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
20.00 x
EV/SEV/EBITDA
Target: Cumulocity [Germany]
Acquirer: Software Aktiengesellschaft [Germany]
- Cloud-based M2M application platform
- Complements Zementis acquisition and Industry 4.0 alliances with major
players, including Bosch, Octo, Dell and Huawei
Sold to

100
IT Services – Developed Markets
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Public Valuation Multiple

101
IT Services – Emerging Markets
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
21.00 x
23.00 x
25.00 x
EV/SEV/EBITDA

102
Developed 1.31x 12.21x
Emerging 3.71x 22.67x
IT Services Valuations

103
Target Acquirer
Target
Country
Value Description
Chile $39M Electronic transaction processing services
Peru $37M
BPO and IT outsourcing services with a focus on
construction and traffic management
Brazil $14M Outsourcing services, primarily credit origination
Brazil -
Internet software and applications development
consulting services
El Salvador - Back office management services
Deal Spotlights: LATAM outsourcing services
IT Services

104
IT Services
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Sold to
Sold to
Deal Spotlights: Government SI
Target: Harris Corporation [Services division] [USA]
Acquirer: Veritas Capital [USA]
- Technology consulting and solutions for the US government civil and military sectors
Target: Praxis Engineering Technologies [USA]
Acquirer: CSRA [United Kingdom]
- Technology consulting and solutions for the US government civil and military sectors

105
IT Services
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Deal Spotlights: CRM-based SI
Target: Lyons Consulting Group [USA]
Acquirer: Capgemini Group [France]
- Digital marketing and Salesforce-based systems integration services
Target: cDecisions [United Kingdom]
Acquirer: PricewaterhouseCoopers International [dba PwC] [USA]
- Salesforce customer relationship management software and services
Sold to
Sold to
Sold to
Sold to
Target: Basati [USA]
Acquirer: Simplus [USA]
- Consulting services for Salesforce solutions
Target: CRM Manager [USA]
Acquirer: Simplus [USA]
- Salesforce integration and consulting services

106
IT Services
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Sold to
Sold to
Deal Spotlights: Automotive SI
Target: EPOS CAT [Germany]
Acquirer: Data Respons [Norway]
- Computer-aided testing services to the automotive industry
Target: CEC Controls Company [USA]
Acquirer: John Wood Group [dba Wood Group] [United Kingdom]
- Automotive company that offers error proofing, systems engineering, and material handling

107
IT Services
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Deal Spotlights: AI Research Services
Target: Xerox Research Centre Europe [Xerox Corporation] [France]
Acquirer: NAVER Corporation [Korea]
- Software development and research in AI, machine learning, computer vision, natural language processing
Target: Company AI [Korea]
Acquirer: NAVER Corporation [Korea]
- AI research and development services in learning algorithms and optimization technology areas
Sold to
Sold to
Sold to
Sold to
Target: Halli [India]
Acquirer: Google [Alphabet Inc.] [USA]
- AI and machine learning based solutions
Target: Maluuba [Canada]
Acquirer: Microsoft Corporation [USA]
- Deep learning mobile applications for natural language processing

108
IT Services – Developed Markets
0.40 x
0.60 x
0.80 x
1.00 x
1.20 x
1.40 x
1.60 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
EV/SEV/EBITDA
Deal Spotlight: BPO Services
Sold to
Target: DST Systems [USA]
Acquirer: SS&C Technologies [USA]
- BPO services to the financial and healthcare industries
- Expands SS&C's footprint into the US retirement and wealth management markets

109
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Amanda Tallman
Senior Analyst
Becky Hill
Research Analyst
Patrick Cunningham
Research Analyst
Yasmin Khodamoradi
Director, Valuation Services

110
Luminary Panel – The Year Ahead
Peter Coffee
@petercoffee
Salesforce
Henry Hu
@HenryMHu
IBM
Reese Jones
@Reese_Jones
Singularity University
Ed Gardner
Descartes
Let us know!
@CorumGroup

111
Special Guest
Peter Coffee is VP for Strategic Research at salesforce.com inc. He has been with the company for
seven years, following nineteen years as a columnist and editor with the industry publications PC Tech
Journal, PC Week and eWEEK. He works with IT managers and application developers to build a global
community on the Salesforce1 cloud platform, combining the Force.com, Heroku1 and ExactTarget Fuel
service portfolios. Peter holds an engineering degree from MIT and an MBA from Pepperdine University,
with subsequent faculty appointments in IT management at Pepperdine; expert-systems programming at
UCLA; and business analytics at Chapman College. He is the author of two books, “How To Program
Java” and “Peter Coffee Teaches PCs”. He is a winner of the Neal Award for excellence in business
journalism and the McGan “Silver Antenna” Award for service to amateur radio. In recent years, Peter has
worked with customers and partners throughout the Americas and in Australia, India and EU countries as
well as lecturing at MIT, Harvard, Stanford, the CalTech/MIT Enterprise Forum and UCLA.
Peter Coffee
Salesforce
VP for Strategic Research

112
Special Guest
Ed Gardner is the Executive Vice president of Corporate Development at Descartes Systems Group,
Inc. He joined Descartes in 2003 where he first held a number of senior roles within our corporate
finance organization. In his current role as Executive Vice President, Corporate Development, Mr.
Gardner is responsible for the development and execution of our M&A strategy. Mr. Gardner's
previous experience includes both practical logistics experience where he worked in a senior
leadership position at a third party logistics provider (3PL) as well as deal execution and integration
experience as part of Ernst & Young's Transaction Advisory Services practice in London, England.
Ed Gardner
Descartes
Executive VP, Corp. Dev.

113
Special Guest
Inventor, venture investor, and business strategist Reese Jones has engaged in over a dozen
companies' start up, financing, development, IPO and acquisitions. They include Netopia, where he
served as CEO until its acquisition by Motorola in 2006, after having founded it as Farallon Computing,
then taken it public in 1996. Other notable technology endeavors in which he's applied his leadership
include Convergence, Mediabolic, and Jobvite, as well as Venture Partnerships at Accel, August, and
TelesoftVC. He is a Fellow in Innovation and Entrepreneurship at UC Berkeley, where as a grad
student in the 1980s he started and ran BMUG, which became the largest nonprofit computer user
group of its kind. Reese is an Associate Founder and active Trustee of Singularity University. His
current interests include network theory, human/Internet interfaces, phones as synapses, and Internet
evolution.
Reese Jones
Associate Founder

114
Special Guest
Henry develops M&A strategies, evaluates acquisition opportunities, leads strategic projects to
formulate new business models, international joint ventures, and innovation programs. He also leads
the preparation of M&A forums for IBM senior executives. Prior to his current role, Henry was the CFO
of IBM Systems Strategic Imperatives (e.g. Cloud and Analytics). His professional background spans
IBM, A.T. Kearney and Ford Motor Company. In 2017 he became the CT/Westchester chapter co-
President of Ascend, the largest non-profit organization for Asian Professionals in North America.
Henry holds a B.S. in International Trade & Computer Science from Shanghai Jiao Tong University, an
M.S. in Engineering Management from Stanford, and an Executive MBA from Columbia University.
Henry Hu
IBM
Corporate Development Executive

115
Luminary Panel – The Year Ahead
Peter Coffee
@petercoffee
Salesforce
Henry Hu
@HenryMHu
IBM
Reese Jones
@Reese_Jones
Ed Gardner
Descartes

116
Q&A
 We welcome your questions!
 Use Q&A tab at the bottom of screen
 Submit to queue at any time

117
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
Jan. 24: Portland – MB
Jan. 25: Sacramento – MB
Jan. 31: Dublin – MB
Feb. 6: Columbus – SUSO
Feb. 8: Private Equity Roundtable
Feb. 13: Paris – MB
Feb. 14: Amsterdam – MB
Feb. 15: Seattle – MB
Feb. 15: Barcelona – MB
Feb. 22: San Francisco – Growth
& Exit Strategies
Feb. 28: Baltimore – MB
Feb. 28: Victoria – MB
Mar. 1: Century City – MB
Mar. 1: Atlanta – MB
Mar. 13: San Diego – MB

118
After the Deal – Celebration

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