Global Technology M&A Trends and Analysis – 1H 2015

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Global Technology M&A Trends and Analysis – 1H 2015
July 2015

2Global Technology M&A Trends and Analysis l Woodside Capital Partners l July 2015
Software Industry Landscape
Internet Software Online Services
Systems Software Application Software IT services

Hardware Industry Landscape
Communications Equipment Electronic Equipment, Instruments & Components
Technology Hardware, Storage
& Peripherals
Semiconductors &
Semiconductor Equipment
Technology Distributors

CONTENTS
Technology Trends 9
Software Sector M&A Overview 27
Stock Market Performance 61
Executive Summary 5
Hardware Sector M&A Overview 44

 Global digital ad tech spending is forecasted to reach US$253.0 Bn by 2018 with an estimated 36.6% share in media ad spending; Mobile Internet ad
spending will dominate digital ad spending
 Mobile Internet ad spending will continue to have the biggest share in US digital ad spending; digital video ad spending share is set to increase to 15.5% of
digital spending by 2018
 Rise in associated loss due to data breach incidents has led to increases in spending by the US government on cyber security; cyber security market is
expected to reach US$155 Bn by 2019
 Global wearable technology shipments, including fitness devices, is expected to reach 126.1 Mn in 2019 from 19.6 Mn in 2014
 Smart homes market is estimated to be the largest market within smart cities, constituting 26.6% share in 2017; sales to expand at 26.9% CAGR over 2012–
17; IoT market to accelerate to US$7.1 Tn by 2020 and IoT-enabled devices to represent 50% of global connected devices by 2020, driven by low
component cost and need for connectivity
 Global e-commerce and m-commerce markets are forecast to reach US$1.3 Tn and US$626 Bn, respectively by 2018, led by rapid smartphone adoption
and internet penetration; US e-commerce and m-commerce markets to reach US$491.5 Bn and US$132.7 Bn, respectively in 2018
 Global semiconductor market to reach US$369.6 Bn by 2017, driven by integrated circuits segment; Asia-Pacific region continue to be the largest and fastest
growing market
Executive Summary
Technology Trends
 Growth in digital ad tech sector, driven by programmatic marketing platform, real-time-bidding, and mobile ad growth, expected to lead to increased M&A
activity during the next 12 months
 Enterprises seeking technology innovations to reduce business vulnerability and threats from emerging finance solutions are likely to increase M&A activities
 The need to establish presence in the sector and the growing demand for smart mobility with decline in hardware costs to drive deal activity in IoT sector
 Consolidation among players, omni-channel capabilities and need to build supply chain to drive M&A in e-commerce space in 2015
 In 2015, M&A activity in semiconductor sector continues to be fuelled by shift from PCs to mobiles, new technologies that improve connectivity and
functionality
 Demand for analytics and low-cost architecture is expected to drive M&A activity in HR technologies and smart storage solutions
Technology Industry Outlook

 Global M&A activity in 2015 is expected to continue the robust deal activity experienced in 2014; Deal value surges in the first two months of Q2 2015
 Global mid-market deal volume and value surge in Q1 2015 after a subdued previous quarter; US mid-market deal value driven by few major deals in Q1
2015
 Global average transaction size surges in Q1 2015 over Q4 2014; Mid market deals rise in Q1 2015; Mega deals drive transaction value in the first two
months of Q2 2015
 US average transaction size trend upwards for all size segments in Q1 2015; First two months of Q2 2015 witnesses robust increase in deal value led by
mega deals
 Global M&A activity remained robust in 2014, with high deal volume and average transaction size; Momentum is expected to continue in 2015 with increasing
average transaction size
 Globally, online services and application software experience the largest M&A activity among the software sub-sectors, accounting for over 85% of deal
volume in Q1 2015
 M&A activity in software industry is led by online services and application software sub-sectors in US, accounting for over 87% of deal volume in Q1 2015
 Strategic buyers dominate the global and US M&A activity in the software industry; over 95% of acquisitions have been made by strategic buyers
 US and Canada accounts for nearly half of global M&A activity in software industry, followed by Europe
 Global and US M&A transactions marked by higher purchase price multiples in Q1 2015 compared to Q1 2014
 Cross-border M&A accounts for nearly one-fourth of global transactions; cross-border deal value at three-year high in the first two months of Q2 2015
 US buyers have acquired more software companies outside the US than non-US buyers have acquired in the US; both inbound and outbound M&A activity
remain buoyant in Q2 2015
 Yahoo, Google and Twitter have been the most active recent acquirers in the software industry
Executive Summary
Software Industry: M&A Activity

Executive Summary
 Global hardware industry M&A activity registered strong growth in first five months of 2015; deal value highest in three years
 The number of deals below US$50 Mn and above US$500 Mn increased in Q1 2015 over Q4 2014; large ticket deals drove transaction value in first two
months of Q2 2015
 Global mid-market deal volume and value decline in Q1 2015; US mid-market deal value also fell in Q1 2015
 Average transaction size trends upwards for all size segments in Q1 2015 in the US; first two months of Q2 2015 witness robust increase in deal value, led by
mega deals
 Global M&A activity remained robust in first five months of 2015, with high deal volume and average transaction size
 Globally, electronic equipment and semiconductors witnessed the largest M&A activity in deal volume and value in Q1 2015
 M&A activity in the US was led by electronic equipment, instruments and components, and communications equipment sub-sectors in US, accounting for over
64% of deal volume in Q1 2015
 Strategic buyers dominate global M&A activity in hardware industry with over 90% of deals
 Strategic buyers dominate M&A activity in US hardware industry, representing over 90% of deals
 US and Canada record highest M&A activity in hardware industry, accounting for 41% transactions by deal volume and 49% by deal value
 Global and US M&A transactions marked by lower purchase revenue multiples in Q1 2015 than Q4 2014 and Q1 2014
 Global M&A transactions marked by higher purchase price EBITDA multiples than Q4 2014 and Q1 2014 in Q1 2015; US M&A transactions marked by lower
purchase price EBITDA multiples in Q1 2015
 Cross-border M&A accounts for over one-fourth of global transactions; cross-border deal value reaches three-year high in first two months of Q2 2015
 Number of US inbound deals increased in Q1 2015 while outbound deals remained flat; deal value of inbound M&A registered record growth as compared to
the last three years
 Intel, Ametek and Arrow Electronics have been the most active recent acquirers in the hardware industry
Hardware Industry: M&A Activity

CONTENTS
Technology Trends 9
Software Industry M&A Overview 27
Executive Summary 5
Hardware Industry M&A Overview 44

Global Digital Ad Tech Spending (US$ Bn) Global Mobile Internet Ad Spending (US$ Bn)
 Digital ad spending is expected to rise at a CAGR of 14.9% from 2014 to 2018, driven by mobile, digital video, and programmatic buying
 Effective data-driven targeting, low CPMs, and a direct feedback loop that enables the calculation of ROI on digital advertising dollars spent have driven
increased spending
 According to comScore, ~60% of time spent online in 2014 was on mobile devices, with the majority of this activity being within apps
Global Digital Advertising: Global ad tech spending continues to grow rapidly, with
mobile advertising steadily increasing its share of spending
Source: eMarketer
120.0
145.0
171.0
198.0
225.0
253.0
23.1%
26.6%
29.6%
32.2%
34.5%
36.6%
2013 2014 2015E 2016E 2017E 2018E
Digital ad spending % of total media ad spending
19.2
42.6
68.7
101.4
133.7
166.6
16.0%
29.4%
40.2%
51.2%
59.4%
65.9%
2013 2014 2015E 2016E 2017E 2018E
Mobile Internet ad spending % of digital ad spending

US Digital Advertising Spending (US$ Bn)
32.4 31.6 29.9 26.6 25.0 25.2
10.7
19.2
28.7
40.5
49.8
57.8
24.8%
37.8%
49.0%
60.4%
66.6%
69.7%
2013 2014 2015E 2016E 2017E 2018E
Desktop Mobile Mobile as a % of total
US Digital Video Advertising Spending (US$ Bn)
3.1
4.3
5.2 5.7
6.2
6.90.7
1.5
2.6
3.9
5.1
6.0
8.9%
11.5%
13.3%
14.3%
15.0%
15.5%
2013 2014 2015E 2016E 2017E 2018E
Desktop Mobile Video as % of digital spending
 The penetration of new video-capable devices and increased popularity of video streaming services are leading viewership away from traditional television
 Ad tech budgets are shifting from linear television to online and mobile video, which has led to expansion in video advertising
US Digital Advertising: Mobile ad spending in US to continue to increase share of digital
ad spending
Source: eMarketer; WCP Analysis

Ad Tech M&A Drivers: Programmatic marketing platforms, real-time-bidding, and mobile
ad growth
Digital Ad Tech: Key M&A Transactions
 High demand for companies that provide innovative ways to create real value for brands is driving the M&A market in the digital ad tech space
 Digital ad tech companies that provide improved data analytics through complex algorithms, which enable effective and personalized targeting and
provide real-time data, are expected to gain ground
• Need for customer relationship management systems with valuable social data on target audiences that advertisers can use to develop and
provide successful marketing campaigns may drive further acquisitions and partnerships
 Programmatic marketing platforms that provide advanced methods to optimize and measure the return on investment for advertisers are likely to
attract increased attention
Source: Capital-IQ; WCP Analysis
Digital Ad Tech: M&A Outlook
Ann. Date Target Acquirer Deal Value (US$ Mn) EV/Revenue Target Description
May-15 Shift Labs Brand Networks 50 NA Provides real-time marketing platform for advertisers
May-15 AOL Verizon 4,759.40 1.7x Digital distributor of content, products, and services
Apr-15 Bronto Software NetSuite 200 NA Provides cloud-based marketing platform
Apr-15 Chango Rubicon Project 122 NA Programmatic advertising platform provider
Mar-15 Mob Partner Cheetah mobile 58 1.9x Operates a mobile affiliate network that connects advertisers
Mar-15 eXelate Nielsen NA NA Provides analytics, smart data & cloud products for marketers
Mar-15 Avazu Dalian Zeus 333.6 NA Digital marketing services provider
Mar-15 Yieldex AppNexus 100 NA Cross-channel revenue and inventory management platform
Feb-15 SocialMoov Marin Software 18.8 NA Provides platform for social advertising
Feb-15 Spotzot Valassis Comm NA NA Provides mobile advertising platforms with focus on location tech.
Jan-15 ZipDial Twitter 30 NA Provides marketing, customer engagement & analytics solutions

 The per capita cost of data breaches continues to increase, with the average estimated cost at US$153.1 in 2015, up from US$146.9 in 2014
 Spending on cyber security by the US government is expected to increase significantly due to the increasing losses from data breaches, which is among the
highest in the world
Per Capita Cost of Data Breach (US$) US Budget Allocation on Cyber Security Cyber Security Market Size (US$ Bn)
Cyber Security: Increase in data breaches leads to spending increases
Source: Ponemon Institute; MarketsandMarkets
188
210
177
143
131
120
131
52
37
201
195
183
158
141
127
135
70
51
217
211
186
163
146
135
133
78
56
US
Germany
France
UK
Italy
Japan
Australia
Brazil
India
2013 2014 2015E
0.9
14.0
2000 2016E
95.6
105.4
116.2
128.1
141.3
155.7
2014 2015E 2016E 2017E 2018E 2019E
~14x increase CAGR: 10.2%

Cyber Security: Recent Transactions and Outlook
Cyber Security: Key M&A Transactions
 The need for continuous improvement in technology to counter rapid evolving cyber threats is forecast to drive M&A as firms seek to acquire
solutions rather than develop in-house
• Firms may look to buy innovation-driven, small-scale firms that offer niche cyber security services and products
 An increase in business vulnerability as a result of growth in connectivity (often through less secure devices such as mobile phones and cloud
storage) is likely to drive companies to acquire/partner with other security providers to reduce the risk of potential loss of IP, reputation, and
customers
 The increased use of electronic/mobile commerce and banking, greater use of digital cash, and growth in new payment models may also lead to
increased acquisitions
Cyber Security: M&A Outlook
Jun-15 OPenDNS Cisco 635.0 NA Cloud-based security solutions
Jun-15 Virtustream EMC 1,200 NA
Provides enterprise-class cloud software and services and cyber
security solutions
Jun-15
Knowledge
Consulting Group
ManTech
International
NA NA
Provides cyber risk management, governance, operations, and
compliance services
May-15 Resolution1 Security
General Dynamics
Fidelis
NA NA Provides incident resolution solutions
May-15
Creative Computing
Solutions
Information
innovators
NA NA Cyber security and health-focused Solutions
Apr-15
Information Security
Solutions
Assured Info.
Security
NA NA
Cyber security, information technology security, and cyber
intelligence solutions

Internet of Things (IoT) Market Size (US$ Tn) Global Connected Devices (Bn)
 IoT devices are projected to contribute to ~50% of global connected devices by 2020 as a result of:
• Low cost to add IoT capability to consumer products, due to reduced component costs
• Increased demand for remote control, monitoring, and sensing functions
 The advent of low-priced sensors, low-cost internet bandwidth, big data analytics and the need for connectivity have led to growth in the IoT market
IoT Market: Reduced component cost and need for connectivity to drive rapid growth
Source: IDC, Strategy Analytics
1.9
2.7
3.8
5.6
7.1
2013 2015E 2017E 2019E 2020E
0
5
10
15
20
25
30
35
2014 2015E 2016E 2017E 2018E 2019E 2020E
PCs Smartphones Tablets
Internet Media Devices Smart TVs Smart Home Devices
Wearables IoT
49.9%
4.8%
14.5%
4.8%
4.2%
5.9%
12.8%
3.0%
CAGR: 20.4%
As a %
of total

Global Wearable Device Shipments (Mn) Global Wearable Device Shipments by Product (Mn)
 Wearable device shipments are projected to reach 46.0 Mn by 2015 from 19.6 Mn in 2014; higher consumer awareness, new device launches, and cross
platform adaptation of smart wearables are driving the demand for wearable devices
 Wrist-wear devices, such as watches and bands, account for 90.4% of wearable devices; they are forecast to reach 101.4 Mn in shipments in 2019 from 17.7
Mn in 2014, expanding at a CAGR of 41.8%.
Global Wearables: Fitness devices to drive rapid growth
Source: IDC; Note: Basic wearables are those devices that do not run third party applications
15 20
27
36
44
52
4
26
38
50
63
74
19
46
65
86
107
126
2014 2015E 2016E 2017E 2018E 2019E
Basic Smart
CAGR: 46.0%
19.6
126.1
17.7
101.4
1.6
6.7
5.6
0.1
5.1
0.2
7.3
2014 2019E
Wristwear Modular Clothing Eyewear and Earwear Other

Smart Home Market (US$ Bn) Smart Home Devices within smart cities (Mn)
 The smart home technology market is expected to reach US$71.8 Bn in 2017 from US$21.8 Bn in 2012, expanding at a CAGR of 26.9%
 Adoption is fueled by an increasing need for connectivity across devices for entertainment, computing, monitoring and control, and health
 The share of smart homes in smart cities is projected to increase to 39.9% in 2017 from 26.6% in 2015, fueled by investments in energy management,
automation, and security
Smart Homes: Rapid growth driven by need for connectivity across devices and energy
management, automation and security
Source: Deloitte University Press; Gartner
13.7
41.3
8.1
30.5
21.8
71.8
2012 2017E
Smarthome hardware Smarthome installation services and fees
CAGR: 26.9%
97.8 126.4 159.5
206.2
354.6
648.1294.2
586.1
1,067.0
237.2
298.9
371.0
252
304.9
371.1
19.9
33.4
57.3
2015E 2016E 2017E
Public Services Smart Comm. Buildings Smart Homes Transport Utilities Others

IoT Market: Large, traditional companies acquiring smaller IoT vendors to establish
foothold in rapidly emerging IoT sector
IoT: Key M&A Transactions
Jun-15 Altera Intel 15,844.5 8.3x Embedded chip company that specializes in reconfigurable chips
Apr-15
Motorola Sol. Ent.
device business
Zebra 3,450.0 NA Rugged mobile comp, tablets, and WLAN products for business
Feb-15 Exelis, Inc. Harris Corp. 5,193.2 1.43x
Command, control, communication, computers, intelligence, and
surveillance electronics and systems provider
Feb-15
MyFitnessPal &
Endomondo
Under Armour 560.0 NA
 Health tracking app
 Social sports and fitness network
Feb-15 AlertMe British Gas 67.7 NA Home energy-monitoring software provider
Jan-15 Wit.ai Facebook NA NA Voice recognition technology
 Large players, in an attempt to establish their foothold in the IoT-enabled landscape, are expected to increase acquisitions/partnerships with niche
players: 2014/15 saw Google buy manufacturers of Internet-enabled technology for homes (Nest acquisition) and wearables (WIMM Labs acquisition)
 The need to leverage declines in technology cost and increased use of Internet connectivity to improve consumer relationships, find new revenue
sources, and gain differentiated competitive advantage is likely to increase M&A activity in the IoT sector
 The threat of competition from established technology companies that also have presence in the IoT space is likely to drive acquisitions by bigger
brands (Under Armour acquisition of MyFitnessPal)
 Connected cars and industrial IoT solutions are anticipated to drive growth in M&A activity as the need for smart mobility solutions and industrial
demand intensify
IoT: M&A Outlook

Global E-commerce Sales* (US$ Bn) Global M-commerce Sales* (US$ Bn)
 Global e-commerce sales are expected to expand to US$1.3 Tn in 2018 from US$545 Bn in 2012, with Asia-Pacific and North America leading the market
 Global m-commerce sales are projected to increase at a CAGR of 47.4% over 2012-2018, driven by growth in the adoption of mobile devices such as
smartphones and tablets
Global E-commerce and M-commerce: Growth led led by rapid smartphone/Internet
adoption combined with improved ability to transact via mobile devices
Source: eMarketer; Euromonitor; Goldman Sachs; Ex-travel
61.0
133.0
204.0
298.0
415.0
516.0
626.0
2012 2013 2014E 2015E 2016E 2017E 2018E
545.0
638.0
752.0
882.0
1,024.0
1,179.0
1,346.0
2012 2013 2014E 2015E 2016E 2017E 2018E
CAGR: 16.3% CAGR: 47.4%

US E-commerce Sales (US$ Bn) US M-commerce Sales (US$ Bn)
 US is currently the largest retail e-commerce market, with US$304.1E Bn in global e-commerce sales in 2014
 US retail m-commerce sales are forecast to rise to US$132.7 Bn in 2018 at a CAGR of 32.3% over 2012–18, driven by sales through tablets
 According to Forrester, US consumer adoption of smartphones and tablets is likely to rise to 244 mn and 150 mn users, respectively, in 2017
US E-Commerce and M-Commerce: M-Commerce to steadily increase overall share of
E-Commerce
Source: eMarketer
225.3
263.3
304.1
347.3
392.5
440.4
491.5
5.2%
5.8%
6.4%
7.0%
7.6%
8.2%
8.9%
2012 2013 2014E 2015E 2016E 2017E 2018E
Retail E-commerce Sales % of Retail Sales
24.8
42.1
57.8
76.4
98.1
114.5
132.7
0.6%
0.9%
1.2%
1.5%
1.9%
2.1%
2.4%
2012 2013 2014E 2015E 2016E 2017E 2018E
Retail M-commerce Sales % of Retail Sales

E-Commerce M&A Drivers: Consolidation, omni-channel capabilities and need to build
supply chain
E-commerce/M-commerce: Key M&A Transactions
Jun-15
LightInTheBox
Holding
Zhejiang
Aokang Shoes
83.5 0.67x Online retail company
May-15 Menulog Group JUST EAT 687.3 33.0x Online takeaway food and home-delivery platform
May-15
Hualian Electric
Commerce
China Strategic
Holdings
258.1 NA Online shopping platform
May-15 Geeknet GameStop 133.8 0.71x Online retailer for the global geek community
Apr-15 Freecharge Snapdeal 400.0 NA Online mobile recharge provider
Feb-15 Orbitz Worldwide Expedia 1,880.1 1.82x Online travel company
 Consolidation in the sector, with bigger companies acquiring smaller, niche ones, is projected to drive M&A as players seek to expand geographic
reach and product line
 Growth in the concept of the omni-channel brand is likely to drive online retailers to acquire companies with physical real estate to provide
inspection/trial of their products and engage with consumers. For instance, in 2014, Alibaba invested US$692 Mn in a Chinese department store
operator to provide a storefront to its online operations and boost consumer experience
 Brick-and-mortar retailers may look to acquire e-commerce retailers to build their digital footprint and/or enter new markets
 To capitalize on mobile commerce, firms are likely to increase vertical and horizontal integration to expand mobile capabilities, thereby driving M&A in
segments such as payments
E-commerce/M-commerce: M&A Outlook

Global Semiconductor Market by Segment (US$ Bn) Global Semiconductor Market by Region (US$ Bn)
 The global semiconductor market is forecasted to expand at a CAGR of 4.9% to US$369.6.0 Bn during 2012–17 led by the integrated circuits segment,
which accounts for more than 80% of total semiconductor sales
 Asia-Pacific, the largest market, accounts for over 55% of the total semiconductor sales, and is projected to expand most rapidly at a CAGR of 6.6% over
2012–17
Global Semiconductors: Growth led by integrated circuits segment and Asia-Pacific
region
Source: World Semiconductor Trade Statistics
163.0 174.4
194.2 207.7 216.4 224.6
54.4
61.5
69.3
71.9
73.3
74.6
33.2
34.9
37.5
36.1
37.0
37.8
41.1
34.8
34.8
31.5
32.1
32.6
2012 2013 2014 2015E 2016E 2017E
Asia Pacific Americas Europe Japan
238.2 251.8
277.3 285.8 295.3 303.9
26.2
27.6
29.9
32.4
33.5
34.7
19.1
18.2
20.2
20.4
21.0
21.6
8.0
8.0
8.5
8.7
9.1
9.5
2012 2013 2014E 2015E 2016E 2017E
Integrated Circuits Optoelectronics Discrete Semiconductors Sensors
291.6
335.8
305.6
369.6
347.2
358.9

Semiconductor M&A Drivers: Shift from PCs to mobiles, new technologies expected to
improve connectivity and functionality
Semiconductor: Key M&A Transactions
Jun-15 Altera Corp. Intel 18,220.5 8.31x
A semiconductor company, which manufactures programmable
logic devices and reconfigurable complex digital circuits
May-15 Broadcom Corp. Avago Tech. 36,697.9 3.97x
The company offers semiconductor solutions for wired and
wireless communications
May-15
NXP
Semiconductors
Investor Group 1,800.0 - Divestiture of RF Power business
Apr-15
OmniVision
Technologies
Investor Group 1,897.8 1.00x
The company designs, develops, manufactures, and markets
semiconductor image-sensor devices
Mar-15
Freescale
Semiconductor
NXP
Semiconductor
17,297.2 3.58x The company manufactures embedded processors
Mar-15 Philips LumiLeds Investor Group 2,900.0 1.80x
The company develops, manufactures, and markets LEDs,
modules, products, and systems for lighting applications
 The continued shift from PCs to mobile is likely to increase M&A activity among PC-focused chip manufacturers, as they look to acquire companies
to boost their mobile capabilities
 New technologies, such as Internet-of-Things, wearables, and smart home, may create opportunities for the semiconductor sector; embedding
‘smart’ capabilities into devices would require semiconductor companies to acquire innovative companies to optimize R&D investments
 Demand for products offering enhanced functionality, high processing speed, and reduced power consumption, is likely to increase M&A activity
(Sumitomo Chemical’s bid to acquire the compound semiconductor materials business of Hitachi Cable)
 Chinese companies and investment groups becoming more active as potential buyers
Semiconductor: M&A Outlook

HR Technology: Social sourcing in recruitment and demand for analytics expected to
drive M&A activity
HR Technology: Key M&A Transactions
 The cloud-based human capital management (HCM) applications market is projected to expand to US$8.4 Bn by 2018 from US$5 Bn in 2013 at a
CAGR of 10.9%
 Big data and the growing contingent workforce are increasing demand for HR Technology
 Real-time workforce visibility and flexibility allow for organizations to respond to changing market conditions
 Cloud technology is creating massive economies of scale, while reducing IT resource involvement
 Adoption of social sourcing in recruitment, mobile applicant tracking, and Big Data analytics is forecasted to result in the acquisition of niche tech
players
Source: Entrepreneur; Capital-IQ; WCP Analysis
HR Technology: M&A Outlook
Ann. Date Target Acquirer Deal Value (US$ Mn) EV/Rev Target Description
May-15 SuperiorHR Zuman NA NA
Offers human resource (HR) outsourcing and consulting
services
Nov-14 bswift Aetna 400.0 NA Benefits administration technology & services to employers
Oct-14 Allocate Software HgCapital 145.3 2.3x Workforce optimization & assurance s/w & services
Oct-14 Evolv
Cornerstone
OnDemand
42.5 14.2x Provides workforce optimization solutions through big data
Sep-14 Concur SAP 8,300.0 11.5x Cloud-based travel and expense management
Apr-14 Distill Gild NA NA
Provides platform enabling companies to find, engage, and
hire talent with data and intelligence

Storage Market: Software-defined storage and infrastructure convergence for personal
and enterprise data storage expected to drive M&A activity
Storage: Key M&A Transactions
 The high cost and vulnerability of physical servers and storage devices are driving enterprises to adopt cloud storage as it offers the option of low-
cost scalability with easy access and management of data
 Data protection and other add-on storage capabilities will become more directly linked to storage solutions
 Storage will move beyond serving database-friendly LUNs to providing more application-centric storage features
 Private cloud storage, particularly Tier-2 storage, is expected to be rolled out in larger deployments in 2015 by both the government sector and
larger enterprises
 The need for advanced SSDs, flash arrays, software-defined-storage, and infrastructure convergence for personal and enterprise data storage is
anticipated to drive M&A activity
Source: Appsruntheworld; TechTarget; Capital-IQ; WCP Analysis
Storage: M&A Outlook
Ann. Date Target Acquirer Deal Value (USD Mn) EV/Rev. Target Description
Apr-15 IBM Storage Lenovo 3,400.0 NA Entire storage portfolio of IBM
Mar-15 Spansion Cypress 5,000.0 NA Supplier of flash memory and microcontrollers
Mar-15 Amplidata WD/HGST NA NA Object-based software defined storage solution
Jan-15 CloudOn Dropbox 100.0 NA Mobile document creator and editor
Jul-14 InMage Systems.
Microsoft
Corporation
NA NA
provides backup, disaster recovery, and cloud platform
software for enterprises
Apr-14 InkTank Red Hat 175.0 NA Open source object storage provider

Industry Landscape of Technology Sub-sectors
Internet of Things Semiconductor Digital and Video Advertising
Cyber Security HR Technology & Storage E-commerce / M-commerce

CONTENTS
Technology Trends 9
Executive Summary 5

Global and US Software M&A Activity: Robust deal activity expected to continue
through 2015 with deal value surging in the first two months of Q2 2015
Global & US: Deal Volume and Value
6.2 6.0
3.5 4.7 3.2 4.7
6.4 6.8
10.6
6.2
4.2 4.2
7.4 7.3
6.3
9.7
9.8
9.4
3.1
23.5 11.6 10.7
29.4
13.7 26.9
7.3
8.8 15.0
569
590 597
553
512 512
558 567
541
651
554
508 496
385
286 275
297 302
266 256
276 268
281 323 296
243 251
191
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Deal Value (USD Bn) - Global (Ex. US) Deal Value (USD Bn) - US Deal Volume - Global Deal Volume - US
 Global deal volume in the software industry decreased 2.4% QoQ and 8.3% YoY to US$496B in Q1 2015, while aggregate deal value increased 40.9% QoQ to
US$16.1 Bn in 2015’Q1 led by acquisition of Advent Software (US$2.6 Bn) by SS&C Technologies and Fundtech by DH Corporation (US41.3 Bn). However, deal
value in 2015’Q1 declined 59.7% YoY as 2014’Q1 witnessed one of the largest deals (Facebook’s acquisition of WhatsApp valued at US$19.7 Bn)
 US deal volume rose 3.3% QoQ but declined 10.7% YoY to 251 in Q1 2015. Aggregate deal value surged 19.3% QoQ but decreased 70.2% YoY to US$8.8 Bn in
Q1 2015. Deal value in US for the first two months of Q2 2015 stood higher than Q1 2015 at US$15.0 Bn led by two large deals (AOL and Informatica Corp.)
Source: Capital-IQ; *Till June 8, 2015; Note: Deals that are announced, closed or effective; Deal value includes transactions with disclosed values only

Global: Deal Volume by Ticket Size
136 142 144
121
109
117
137 130
112
137
99 104
80
71
28
34 28
22
24
21
27 46
32
41
37 32
33
17
4
7
6
9
3
11
10
6
13
11
13 7
7
7
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Deals (<USD50 Mn) Deals (USD50-500 Mn) Deals (>USD500 Mn)
Global: Deal Value by Ticket Size (US$ Bn)
 Deals below US$50 Mn dominate the M&A deal volume, with 80 transactions valued at US$1.2 Bn in Q1 2015. Average deal value stood at US$14.6 Mn in Q1
2015 compared to US$12.5 Mn in 2014’Q4 and US$12.0 Mn in Q1 2014
 Mid Market witnessed 33 transactions valued at US$6.2 Bn in Q1 2015. Average deal value stood at US$188.3 Mn vs. US$142.7 Mn in Q4 2014 and US$150.3
Mn in Q1 2014.
 Deal value for large deals (>US$500 Mn) totaled US$8.7 Bn from 7 transactions, with an average deal value of US$1.2 Bn in Q1 2015
Global M&A Software Trends: Average transaction size increasing; Mid market deals
rise in Q1 2015; Mega deals drive transaction value in the first two months of Q2 2015
1.7 1.9 1.5 1.7 1.3 1.2 1.6 1.7 1.3 1.9 1.3 1.3 1.2 1.1
4.7 5.4
4.1 3.3 2.9 3.9
4.6
8.0
4.8
6.1 7.1
4.6
6.2
4.2
6.0
8.5
7.7 9.1
2.2
23.1
11.8
7.8
33.9
11.9
22.7
5.7
8.7
17.0
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Source: Capital-IQ; *Through June 8, 2015; Note: Deal value includes transactions with disclosed values only

Global Mid-Market Software M&A: Deal volume and value surge in Q1 2015
Global & US: Mid Market Deal (US$50-500 Mn) Volume and Value
 Global mid-market deal volume rose marginally to 33 as compared to 32 in Q1 2014 and Q4 2014. Deal value surged 36.0% QoQ and 29.1% YoY to US$6.2
Bn in Q1 2015. Major deals in Q1 2015 included the acquisition of MyFitnessPal by Under Armour and KCG Hotspot by BATS Global Markets
 US mid-market deals stood at 13 in Q1 2015 vis-à-vis 16 in Q4 2014 and 18 in Q4 2014. Aggregated deal value was US$2.7 Bn, an increase of 14.3% QoQ
and at similar levels compared to Q1 2014
1.0
2.8
2.0
0.9
1.3
2.2 2.4
3.7
2.1
3.4
2.3 2.2
3.6
1.9
3.7
2.6
2.2
2.3 1.6
1.7
2.2
4.4
2.7
2.7 4.8
2.3
2.7
2.2
28
34
28
22 24
21
27
46
32
41
37
32 33
1719
15 14 14 13
10 9
24
18 18
22
16
13
8
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

US: Deal Volume by Transaction Size US: Deal Value by Transaction Size (US$ Bn)
 In Q1 2015, there were 30 transactions below US$50 Mn representing a total value of US$500 Mn. Average deal value rose to US$15.7 Mn in Q1 2015 from
US$14.2 Mn in Q4 2014 and US$13.6 Mn in Q1 2014
 Mid-Market had 13 transactions valued at US$2.7 Bn in Q1 2015. Average deal value was US$204.3 Mn vs. US$145.2 Mn in Q4 2014 and US$204.3 Mn in Q1
2014.
 Deal value for large deals (>US$500 Mn) totaled US$5.6 Bn from 4 transactions, with an average deal value of US$1.4 Bn in Q1 2015
US Software M&A: Average transaction size increases in Q1 2015; Mega deals drive
growth in Q2 2015
0.7 0.8 0.6 0.8 0.5 0.4 0.6 0.6 0.7 0.9 0.5 0.5 0.5 0.4
3.7 2.6 2.2 2.3
1.6 1.7 2.2
4.4
2.7 2.7
4.8
2.3 2.7 2.2
1.9
6.3 7.0 6.3
1.0
21.3
8.7
5.8
26.1
10.0
21.5
4.5
5.6
12.4
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Deals (<USD50 Mn) Deals ($50-USD500 Mn) Deals (>USD500 Mn)
46
52 51 48
42 43
58
46 48
59
39 37
30
22
19
15 14
14
13 10
9
24 18
18
22
16
13
8
1
5
5
5
1 8
7
5
8
9
12
5
4
5
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

Global Software M&A Activity by Quarter
Global: Average Deal Size
12'Q1, $74.2 Mn
12'Q2, $86.1 Mn
12'Q3, $74.9 Mn
12'Q4, $92.4 Mn
13'Q1, $46.5 Mn
13'Q2, $189.4 Mn
13'Q3, $103.0 Mn
13'Q4, $96.4 Mn
14'Q1, $255.1 Mn
14'Q2, $105.5 Mn
14'Q3, $208.3 Mn
14'Q4, $80.9 Mn
15'Q1, $134.4 Mn
15'Q2*, $234.6 Mn
$0Mn
$50Mn
$100Mn
$150Mn
$200Mn
$250Mn
$300Mn
20 25 30 35 40 45 50 55 60
AverageDealSize(US$Mn)
Deal Volume (>USD50 Mn)
Bubble size indicates total deal value for disclosed deals >$50 Mn)
Source: Capital-IQ; * Through June 8, 2015; Note: Deal value includes transactions with disclosed values only
Green indicates year 2012, Blue 2013, Orange 2014 and Yellow 2015
Data Label: Quarter, Average Deal Size

Global: Deal Volume by Sector
21 16 16 17 29 21 29 27 25 30 13 15 12 8
313
350 339 313 281 291
322 336 322
386
329 318 314
259
42
40 37
38
46 36
38
40
40
43
52
38 32
25
141
148 161
139
123 117
126
131
108
146
122
107 108
69
39
27 33
32
21 28
33
26
27
27
26
16 19
14
13
9 11
14
12 19
10 7
19
19
12
14 11
10
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Internet Software Online Services IT Services
Application Software Systems Software Multiple Sectors
Global: Deal Value by Top 2 Sub-Sectors (US$ Bn)
 Online services dominate the global M&A activity, accounting for over 60% of the transactions in Q1 2015. Number of transactions totaled 314 in Q1 2015 vs.
318 in Q4 2014 and 322 in Q 2014. Application software, the second largest sector in terms of M&A activity, had 108 transactions in Q1 2015, similar to 107
transactions in Q4 2014 and 108 deals in Q1 2014
 In terms of deal value, online services and application software have consistently remained the top two sectors. Deal value totaled US$6.9 Bn for online
services and US$6.0 Bn for application software in Q1 2015
Global M&A Activity by Software Sector
3.1
9.0
2.9 4.1
2.3
10.3 9.9
12.0
29.2
12.8
15.5
6.2 6.9
15.18.1
5.6
6.6 5.3
1.8
3.6
3.3
5.4
4.5
11.5
4.0
6.0
6.4
9.9
1.3
1.1
3.8 4.7
2.3
8.1
4.4 2.2
5.4
2.7
4.0
1.4
3.2
0.8
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Online Services Application Software Systems Software Others

US: Deal Volume by Sector US: Deal Value by Top 2 Sub-Sectors (US$ Bn)
 Online services represented over 60% of the transactions in Q1 2015 in US. Number of transactions totaled 158 in Q1 2015 vs 160 in Q4 2014 and 187 in Q1
2014. Application software, the second most active sector, had 61 transactions in Q1 2015 compared to 47 transactions in Q4 2014 and 51 deals in Q1 2014
 Online services and application software are the dominant sectors in software industry. Deal value for transactions with disclosed value totaled US$5.1 Bn for
application software and US$3.0 Bn for online services in Q1 2015
US M&A Activity by Software Sub-Sector
12 8 7 9 18 7 16 14 10 11 3 8 7 2
170
165 176 176 147 158
163 166
187
199 204
160 158
136
18
16
17 24
23 14
20 19
12
18 22
17 13
12
62
67
74
73
59
54
55 51
51
70
50
47 61
33
16 16
16
16
12
12
17 15
13
16
12
5
7
6
8 3
7
4
7
11
5 3
8
9
5
6
5
2
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Internet Software Online Services IT Services
Application Software Systems Software Multiple Sectors
2.31.2
5.2
2.6
1.1
7.6
4.9
7.4
22.5
8.6
14.1
4.5
3.0
9.1
4.4
4.1
5.5
3.2
1.2
3.0
1.9
4.7
3.4
10.5
2.0 5.1
5.49.4
0.7
0.4 1.9
3.6
0.9
6.5
3.6 1.5
2.2
1.6
2.3
0.9
0.7
0.6
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2
Internet Software Online Services Application Software Systems Software Others
Source: Capital-IQ; *Till June 8, 2015; Note: Deal value includes transactions with disclosed transaction values only

Global: Deal Volume by Buyer Type Global: Deal Value by Buyer Type (US$ Bn)
 Strategic buyers accounted for over 95% of the transactions, and 459 in
Q1 2015 compared to 468 in Q4 2014 and 497 in Q1 2014
 Financial buyers led only 22 M&A transactions in Q1 2015’Q1 vs. 23 in Q4
2014 and 29 in Q1 2014
 Deal value for transactions led by strategic buyers rose to US$14.7 Bn in
Q1 2015 from US$8.7 Bn in Q4 2014 but declined compared to US$31.6
Bn in Q1 2014
 Financial buyers accounted for US$1.3 Bn in Q1 2015 vs. US$2.4 Bn in
Q4 2014 and US$8.4 Bn in Q1 2014
Strategic Buyers Dominating Global Software M&A Activity
521 540 534
500
462 474 497 516 497
599
497
468 459
357
28
35 25
34
27 25
33
26
29
34
40
23 22
16
1
1
1 2
1
3
1
1 2
1
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Strategic Buyer Financial Buyer Both
8.8
11.2 11.6 11.7
5.1
17.7
12.1
14.7
31.6
13.7
22.8
8.7
14.7
12.2
3.7
3.5 1.6 2.2
1.2
10.6
5.8
2.3
8.4
6.2
8.2
2.4
1.3
9.91.1
0.1
0.4
0.5
0.1
0.2
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Source: Capital-IQ; Note: 261 transactions did not disclose buyer details; Deal value refers to deals with disclosed transaction value

US: Deal Volume by Buyer Type US: Deal Value by Buyer Type (US$ Bn)
Strategic Buyers Dominating US Software M&A Activity
273
256
269 281
247 240 251 250
263
296
263
223
236
178
9
15
11
17
12
13
17 12
12
20
28
11
10
8
1 1
3
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
5.9
7.9 8.6
7.2
3.1
13.7
7.3
10.7
28.4
8.0
18.7
5.0
8.2
9.7
0.3
1.8 1.1
2.2
0.1
9.8
4.3
0.1
1.1
5.7
8.2
2.3
0.6
5.4
0.1
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Source: Capital-IQ; Note: 85 deals did not disclose buyer details; Deal Volume includes all transactions for which buyer details are disclosed; Deal value refers to deals with disclosed transaction value
 Strategic buyers also represented over 95% of the transactions, and were
involved in 236 transactions in Q1 2015 compared to 223 in Q4 2014 and
263 in Q1 2014
 Financial buyers led 10 M&A transactions in Q1 2015 vs. 11 in Q4 2014
and 12 in Q1 2014
 Deal value for transactions led by strategic buyers increased to US$8.2
Bn in Q1 2015 from US$5.0 Bn in Q4 2014 but declined compared to
US$31.6 Bn in Q1 2014
 Deal value for transactions led by financial buyers was US$600 Mn in Q1
2015 vs US$D2.3 Bn in Q4 2014 and US$1.1 Bn in Q1 2014

Global: Deal Volume by Region Global: Deal Value by Region (US$ Bn)
US and Canada Accounts for Nearly Half of Total M&A activity in Software Industry,
Followed by Europe
316 309 328 322
292 285 296 291 300
347
317
274 270
203
177 186
184
156
145 153
162 177 170
190
150
145 136
104
55 69
62
57
53 55
71 74 45
74
62
64
64
58
13
12 14
10
13 8
15
16
12
25
12
7 12
9
8
14 9
8
9 11
14
9
14
15
13
18 14
11
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
United States and Canada Europe Asia / Pacific
Latin America and Caribbean Africa / Middle East
6.3
11.1 10.2 10.0
3.2
24.8
11.9 11.0
29.4
13.8
27.0
7.4 8.9
15.03.2
3.2
2.3 2.4
1.6
2.0
2.8 4.5
8.9
4.7
2.6
2.5
4.6
4.9
2.8
0.9
0.7 0.8
1.4
1.2
3.0 1.8
1.2
1.0
1.3
1.3
2.3
1.6
0.1
0.4
0.1
0.1
0.1
0.2
0.1
0.1
0.1 0.8
0.1
0.1
0.2 0.2
0.4
0.3
0.3
0.4
0.4
0.6
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
 US and Canada led the M&A activity in software industry, accounting for
over 54% of the total global deals in Q1 2015. Number of deals in US
stood at 270 in Q1 2015 compared to 274 in Q4 2014 and 300 in Q1 2014
 Europe is the second most active market, with 136 transactions in Q1
2015
 In total deal value for the software industry, US and Canada accounted for
around 55%, with US$8.9 Bn in Q1 2015 vs US$7.4 Bn in Q4 2014 and
US$29.4 Bn in Q1 2014
 Europe remained the second largest market with transactions worth
US$4.6 Bn in Q1 2015
Source: Capital-IQ; *Through June 8, 2015; Note: Deal value includes transactions with disclosed transaction values only

Global: Average EV/ Revenue Multiple and TTM Revenue
2.5x
3.2x
2.4x
2.6x
2.3x
3.7x
2.6x
3.3x
2.8x
3.5x
4.0x
3.5x
3.4x
3.0x
45.3
33.1
55.7 53.1
22.3
286.9
57.5
40.5
69.1
47.3
88.1
50.0 41.3
116.2
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
EV/ Revenue Multiple Average TTM Revenue (USD Mn)
US: Average EV / Revenue Multiple and TTM Revenue
3.2x
2.4x
4.1x
3.2x 3.1x
4.3x
3.7x
5.4x
3.9x
4.5x
5.0x
4.5x 4.6x
2.7x
41.1
73.4
115.6 115.4
40.9
258.2
137.8
51.5
126.6
58.5
158.4
74.1
112.1
361.6
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
 Average EV / Revenue multiple was 3.4x in Q1 2015 compared to 3.5x in
Q4 2014 and 2.8x in Q1 2014
 Average revenue of the acquired company decreased to US$41.3 Mn in
Q1 2015 from US$50.0 Mn in Q4 2014 and US$69.1 Mn in Q1 2014
 Average EV / Revenue multiple increased to 4.6x in Q1 2015 from 4.5x in
Q4 2014 and 3.9x in Q1 2014
 Average revenue of an acquired company rose to US$112.1 Mn in Q1
2015 from US$74.1 Mn in Q4 2014, but decreased compared to
US$126.6 Mn in Q1 2014
Valuation Trends: Software Revenue Multiples Higher in 2015 vs. 2014 in US and
Worldwide

Global: Average EV / EBITDA Multiple and TTM EBITDA US: Average EV / EBITDA Multiple and TTM EBITDA
 Average EV / EBITDA multiple rose to 16.7x in Q1 2015 from 15.9x in Q4
2014 and 11.0x in Q1 2014
 Average EBITDA of the acquired company was US$16.3 Mn in Q1 2015
vs. US$8.4 Mn in Q4 2014 and US$17.1 Mn in Q1 2014
 Average EV/ EBITDA multiple increased to 25.5x in Q1 2015 from 17.3x
in Q4 2014 and 10.9x in Q1 2014
 Average EBITDA of the acquired company surged to US$29.5 Mn in Q1
2015 from US$9.5 Mn in Q4 2014 and US$13.3 Mn in Q1 2014
Valuation Trends: Software EBITDA Multiples Higher in 2015 vs. 2014 in US and
Worldwide
17.9x
14.4x
13.8x
12.4x
11.7x 11.8x
17.7x
15.1x
11.0x
26.4x
15.7x 15.9x
16.7x
16.0x
8.4 13.2 13.5 22.2
4.1
48.6
10.1 12.0 17.1 16.2 24.9
8.4 16.3
38.3
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
EV/ EBITDA Multiple Average TTM EBITDA (USD Mn)
24.5x
7.3x
19.4x
16.2x
13.5x 13.2x
27.5x
20.9x
10.9x
34.8x
15.3x
17.3x
25.5x
20.6x
4.2 26.2 23.6 39.7
4.7
92.2
15.3 7.1 13.3 12.3 35.3 9.5 29.5
70.4
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

Cross-Border Software M&A: Nearly one-fourth of global transactions; 3-year high in
value in Q2 2015
Global: Cross-Border M&A
 Cross-border M&A activity remained buoyant in 2014, registering 618 deals compared to 506 deals in 2013. Deal value for disclosed deals totaled US$24.1 Bn in
2014 vs. US$15.3 Bn in 2013
 Cross-border M&A deal volume stood at 121 in Q1 2015 compared to 155 in Q4 2014 and 143 in Q1 2014. Deal value for disclosed deals totaled US$5.1 Bn in
2015’Q1 vs US$3.5 Bn in Q4 2014 and US$7.6 Bn in Q1 2014
4.9
6.1
2.7
4.0
2.2
3.5 3.9
5.7
7.6
4.4
8.7
3.5
5.1
11.7
128
164
152
113 114
125
142
125
143
171
149
155
121
112
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Cross-Border M&A Deal Value (USD Bn) Cross-Border M&A Deal Volume

US Cross-Border Software M&A Activity: Generally strong and stable; transaction size
surged in Q2 2015
US: Inbound and Outbound Deals
 US inbound M&A deal volume was 163 in 2014 compared to 125 in 2013. US outbound M&A activity remained robust in 2014, registering 224 deals compared to
188 deals in 2013.
 US inbound M&A was 28 in Q1 2015 compared to 36 in Q4 2014 and Q1 2014. Deal value for disclosed deals rose to US$2.7 Bn in Q1 2015 from US$0.9 Bn in
Q4 2014 and US$1.8 Bn in Q1 2014. Outbound deals totaled 48 in Q1 2015 compared to 59 in Q4 2014 and 49 in Q1 2014. Deal value for disclosed deals
totaled US$ 400 Mn in Q1 2015 vs US$1.6 Bn in Q4 2014 and US$2.2 Bn in Q1 2014.
0.7 0.9
0.3
1.7
0.2
1.2
1.9
1.4 1.8
0.4
6.1
0.9
2.7
5.5
2.6
3.3
1.5
1.8
0.6
1.4
1.0
2.9 2.2
2.8
1.1
1.6
0.4
4.7
30
37
42
35 36
25
35
29
36
41
50
36
28
30
58 59 62
34
42
46
52
48 49
68
48
59
48
41
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Inbound Deal Value (USD Bn) Outbound Deal Value (USD Bn) Inbound Deal Volume Outbound Deal Volume

Notable Transactions in Software Industry
2012
2013
2014
2015
YTD
Internet Software Online Services IT Services Application Software Systems Software
(USD2.4 Bn; NA)
(USD125.0 Mn; NA)
(USD324.0 Mn; NA)
(USD155.0 Mn; NA)
(USD205.7 Mn; 2.0x)
(USD200.0 Mn; NA)
(USD62.1 Mn; NA)
(USD28.0 Mn; 2.7x)
(USD1.6 Bn; 3.4x)
(USD1.2 Bn; NA)
(USD2.6 Bn; 8.0x)
(USD2.0 Bn; NA)
(USD19.7 Bn; NA)
(USD3.3 Bn; 14.8x)
(USD4.8 Bn; 1.7x)
(USD4.1 Bn; 7.6x)
(USD0.9 Bn; 1.5x)
(USD0.8 Bn; 5.4x)
(USD4.1 Bn; 2.1x)
(USD0.6 Bn; NA)
(USD1.1 Bn; 2.7x)
(USD1.0 Bn; NA)
(USD1.8 Bn; 1.7x)
(USD0.4 Bn; 5.7x)
(USD2.7 Bn; 2.7x)
(USD2.1 Bn; 3.2x)
(USD1.0 Bn; NA)
(USD1.0 Bn; NA)
(USD4.7 Bn; 3.9x)
(USD2.4 Bn; 2.9x)
(USD5.3 Bn; 4.6x)
(USD2.6 Bn; 6.4x)
Open Solutions LLC
(USD1.0 Bn; 5.0x)
(USD171.5 Mn; 4.5x)
(USD8.4 Bn; 3.1x)
(USD2.4 Bn; 8.9x)
(USD0.8 Bn; 8.1x)
(USD0.4 Bn; NA)
(USD0.5 Bn; NA)
(USD0.2 Bn; NA)
and others
Source: Capital-IQ; Text in brackets (Deal Value, EV / Revenue Multiple)

Most Active Acquirers in Software Industry Since 2012: Yahoo, Google and
Twitter
Most Active Buyers by Number of Deals (Since 2012)
30
27
22
20 20 20
18
16 16 16
15
Yahoo Google Twitter IBM Oracle Trimble Cisco Dropbox Facebook Vista Equity
Partners*
Microsoft
Source: Capital-IQ; * Financial Buyer

CONTENTS
Technology Trends 9
Executive Summary 5

Global Hardware M&A Activity: Strong growth in 2015; Deal value highest in three
years
Global & US: Deal Volume and Value
15.2
8.5 9.3 5.4 4.3
11.1 8.2 7.3 4.4 8.1 5.3
9.8 10.6
40.0
3.9
4.9 3.0 10.3
31.2
3.8 11.0 10.3
7.7
16.2
9.4
10.9
34.7
59.4
295 262 276 261
228 229 217
245
281 270
255 267 288
209
97 95 93 90 91 85 83 77
119
92
94
90
106
71
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
 The global deal volume increased 7.9% QoQ and 2.5% YoY to 288 in Q1 2015, while the aggregate deal value grew to US$45.3 Bn in Q1 2015 compared to
US$20.7 Bn in Q4 2014 and US$12.1 Bn in Q1 2014. This was led by the acquisition of Freescale Semiconductors (US$17.3 Bn) by NXP Semiconductors
 Deal volume in the US rose 17.8% QoQ, but declined 10.9% YoY to 106 in Q1 2015. Aggregate deal value surged 218.5% QoQ and 350.3% YoY to US$34.7 Bn
in Q1 2015. Deal value in the US for the first two months Q2 2015 stood higher than that for all of Q1 2015 at US$59.4 Bn, as a result of two mega deals:
Broadcom (US$36.7 Bn) by Avago Technologies and Altera (US$18.2 Bn) by Intel
Source: Capital-IQ; *Through June 8, 2015; Note: Deals that are announced, closed or effective; Deal value includes transactions with disclosed values only

Global: Deal Volume by Ticket Size
83 82
97
83
68
78 75
87
81
72
67 64
69
51
22
36
25
28
21
20
21
22 30
27
25 29
26
24
7
6
3
8
4
6
5
5 5
12
7 7
12
11
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Global: Deal Value by Ticket Size (US$ Bn)
 Deals below US$50 Mn dominated the M&A deal volume, with 69 transactions valued at US$900 Mn in Q1 2015. The average deal value stood at US$13.5 Mn
in Q1 2015, vs. US$13.1 Mn in Q4 2014 and US$12.0 Mn in Q1 2014
 The mid-market witnessed 26 transactions at USD4.3 Bn in 2015’Q1. The average deal value was USD166.4 Mn in 2015’Q1, compared with USD179.1 Mn in
2014’Q4 and USD144.4 Mn in 2014’Q1
 The deal value for large deals (>US$500 Mn) totaled US$40.0 Bn from 12 transactions, with an average deal value of US$3.3 Bn in Q1 2015
Global M&A Hardware Trends: Large increase in transaction size in 2015 contrasts with
overall decline in volume since 2012
1.0 0.9 1.2 1.2 0.7 0.8 0.7 0.8 1.0 0.9 0.7 0.8 0.9 0.7
3.7
6.0 4.3 3.6
2.7 4.0 4.3 4.1 4.3
6.9
3.8
5.2 4.3 3.3
14.4
6.5
6.8
10.9
32.0
10.1
14.1
12.7
33.9
16.5
10.3
14.7
40.0
95.4
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

Global Hardware M&A Trends: Mid-market deal volume and value generally flat since
2012
Global & US: Mid Market Deal (US$50-500 Mn) Volume and Value
 The global mid-market deal volume declined to 26 in Q1 2015, compared with 29 in Q4 2014. The deal value declined 16.7% QoQ and 0.1% YoY to US$4.3
Bn in Q1 2015. The major deals in Q1 2015 were the acquisition of Annapurna Labs (US$400.0 Mn) by Amazon and Vitesse Semiconductor (US$399.0 Mn) by
Microsemi
 US mid-market deals stood at five in Q1 2015 vs nine in Q4 2014 and 13 in Q1 2014. The deal value totaled US$1.1 Bn, decreasing 41.4% QoQ and 33.7%
YoY
1.7
3.8
2.5
2.2 1.9 2.1 2.2
1.8
2.7
3.1
2.0
3.3 3.2
2.4
2.0
2.2
1.8
1.4
0.8
1.9
2.2
2.3
1.7
3.8
1.8
1.9
1.1
0.9
22
36
25
28
21 20 21 22
30 27
25
29
26 24
12 14
8 10
6
9 9 10
13 15
10 9
5 7
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

US: Deal Volume by Ticket Size US: Deal Value by Ticket Size (US$ Bn)
 The number of deals below US$50 Mn was 21, and had a total value of US$400 Mn in Q1 2015. The average deal value rose to US$19.9 Mn in Q1 2015, from
US$18.1 Mn in Q4 2014 and US$12.6 Mn in Q1 2014
 The mid-market had five transactions totaling US$1.1 Bn in Q1 2015. The average deal value rose to US$221.1 Mn vs. US$209.5 Mn in Q4 2014 and
US$128.2 Mn in Q4 2014
 The deal value for large deals (>US$500 Mn) totaled US$33.2 Bn from nine transactions, with an average deal value of US$3.7 Bn in Q1 2015
US Hardware M&A Trends: Large increase in transaction size in 2015 contrasts with
overall decline in volume since 2012
0.3 0.3 0.4 0.5 0.2 0.3 0.3 0.2 0.5 0.3 0.1 0.3 0.4 0.2
2.0 2.2
1.8 1.4 0.8
1.9 2.2 2.3 1.7 3.8 1.8 1.9
1.1
0.9
1.6
2.4
0.9
8.4
30.2
1.6
8.5 7.7
5.6
12.1
7.6
8.7
33.2
58.3
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Deals (<USD50 Mn) Deals ($50-USD500 Mn) Deals (>USD500 Mn)
22
25 27 25 23 24 24
21
36
18
13
19 21
12
12
14 8 10
6
9 9
10
13
15
10
9 5
7
2
3
1
6
2
2 3
2
3
7
5
3 9
5
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

Global Hardware M&A Activity by Quarter
Global: Average Deal Size
Bubble size indicates deal value (for disclosed deals >$50 Mn)
Source: Capital-IQ; * Through June 8, 2015; Note: Deal value includes transactions with disclosed values only
Green indicates year 2012, Blue 2013, Orange 2014 and Yellow 2015
Data Label: Quarter, Average Deal Size
12'Q1, $170.4 Mn
12'Q2, $107.9 Mn
12'Q3, $98.3 Mn
12'Q4, $131.5 Mn
13'Q1, $381.7 Mn
13'Q2, $143.4 Mn
13'Q3, $189.6 Mn
13'Q4, $154.3 Mn
14'Q1, $104.1 Mn 14'Q2, $218.5 Mn
14'Q3, $149.1 Mn
14'Q4, $207.3 Mn
15'Q1, $423.4 Mn
15'Q2*, $1,155.2 Mn
-$200Mn
$0Mn
$200Mn
$400Mn
$600Mn
$800Mn
$1000Mn
$1200Mn
$1400Mn
23 28 33 38 43
AverageDealSize(US$Mn)
Deal Volume (>USD50 Mn)

Global: Deal Volume by Sub-Sector
61
35
54
38 47
32 36
52 42 37 43 45 49 39
126
134
113
116 99
88 90
100
144
106
111 118 120
92
13
18 14
16
16
19 15
13
17
31 15
13
17
9
40
33
29 44
21
39 35
36
31
43
38
42
42
31
55
42 66 47
45 51
41
44
47
53
48
49
60
38
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Technology Distributors Semiconductors & Semiconductor Equipment
Technology Hardware, Storage & Peripherals Electronic Equipment, Instruments & Components
Communications Equipment
Global: Deal Value by Top 2 Sub-Sectors (US$ Bn)
 Electronic equipment, instruments and components dominated global M&A activity, accounting for over 40% transactions in Q1 2015. The number of
transactions totaled 120 in Q1 2015, vs. 118 in Q4 2014 and 144 in Q1 2014. Technology distributors, the second largest sub-sector in terms of M&A activity,
had 60 transactions in Q1 2015, compared with 49 in Q4 2014 and 47 in Q1 2014
 Communications equipment and semiconductors and semiconductor equipment were the top two sectors based on deal value
Global Hardware M&A Activity by Sub-Sector
13.6
6.9
2.8
6.2 4.7 6.2
14.4
28.8
3.2
8.1 8.4
8.4
4.3
7.1
4.1
29.2
1.6
7.6
3.8
2.7
8.5
4.1
6.0
6.9
8.2
23.2
61.8
2.2
2.3
3.7 2.6
4.9
3.5
3.8
4.6
4.8
3.3
11.1
3.8
6.3
7.7
8.7
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Rest Technology Distributors
Semiconductors & Semiconductor Equipment Technology Hardware, Storage & Peripherals
Electronic Equipment, Instruments & Components Communications Equipment

US: Deal Volume by Sector US: Deal Value by Top 2 Sub-Sectors (US$ Bn)
 Electronic equipment, instruments and components represented more than 41% of the transactions in Q1 2015 in US. Number of transactions totaled 44 in Q1
2015 vs. 35 in Q4 2014 and 64 in Q1 2014. Communications equipment, the second most active sub-sector, had 24 transactions in Q1 2015 compared to 16
transactions in Q4 2014 and 21 deals in Q1 2014
 Semiconductors and Semiconductor Equipment was the largest sub-sector in terms of deal value in Q1 2015 with value totaling US$19.3 Bn
Global Hardware M&A Activity by Sub-Sector
23
16
21
13
22
15 12
25 21
9
19 16
24
17
40 52
35
45
42
34
33
35
64
42
41
35
44
28
4
6
8 3
5
11
5
4
4
12
7
9
8
2
16
13
11 15
6
15
17
6
15
14
16
15
14
12
14 8
18 14 16
10
16 7
15
15
11
15
16
12
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Technology Distributors Semiconductors & Semiconductor Equipment
Technology Hardware, Storage & Peripherals Electronic Equipment, Instruments & Components
Communications Equipment
2.4
4.1
2.2 2.6 3.3
4.7
14.2
2.9 2.1
7.4
6.0
3.2
3.4
0.4
28.2
1.1
1.4 4.8
0.8
1.4
0.9
3.1
7.1
3.2
5.9
19.3
58.6
0.7
0.6
0.9
3.1
0.7
0.7
2.1
0.5
1.2
5.3
0.4
2.8
1.2
0.4
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Others Technology Distributors
Semiconductors & Semiconductor Equipment Technology Hardware, Storage & Peripherals
Electronic Equipment, Instruments & Components Communications Equipment

Global: Deal Volume by Buyer Type Global: Deal Value by Buyer Type (US$ Bn)
 Strategic buyers account for over 90% of the M&A deals: 248 in Q1 2015
compared with 228 in Q4 2014 and 243 in Q1 2014
 Financial buyers led 23 M&A transactions in Q1 2015, vs 16 in Q4 2014
and 14 in Q1 2014
 The deal value for transactions by strategic buyers rose to US$33.0 Bn in
Q1 2015, from US$15.4 Bn in Q4 2014 and US$10.8 Bn in Q1 2014
 Financial buyers accounted for US$11.6 Bn in Q1 2015, representing a
significant increase from US$5.0 Bn in Q4 2014 and US$0.3 Bn in Q1
2014
Strategic Buyers Dominating Global Hardware M&A Activity
265
221
246
220
201 199 190
221
243 236 228 228
248
178
14
21
16
22
13 17
11
11
14
11
12 16
23
20
1
1
4
3 2
1
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
18.4
12.2 11.5
14.9
7.2 8.5
18.6
16.0
10.8
23.1
12.9
15.4
33.0
94.2
0.7
1.2 0.8
0.5
28.1
6.2
0.5
1.6
0.3
1.8
5.0
11.6
4.0
0.7
0.9
0.1
0.7
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Source: Capital-IQ; Note: 226 transactions did not disclose buyer details; Deal value refers to deals with disclosed transaction value

US: Deal Volume by Buyer Type US: Deal Value by Buyer Type (US$ Bn)
Strategic Buyers Dominating US Hardware M&A Activity
89 84 83 79 84 79 74 69
113
83 86 82
93
59
7
9 6 9
7
4
5
4
3
5
6
5
9
10
1 1
1
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
3.4
4.4
2.3
9.9
3.0 3.6
10.6
8.8
7.7
15.3
7.7 7.0
25.8
57.2
0.6
0.6
0.7
0.4 28.1
0.3
0.4
1.5
0.04 1.7 3.9
8.2
2.2
0.9
0.7
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Source: Capital-IQ; Note: 34 deals did not disclose buyer details; Deal Volume includes all transactions for which buyer details are disclosed; Deal value refers to deals with disclosed transaction value
 Strategic buyers accounted for over 90% of M&A transactions in the US:
93 transactions in Q1 2015, compared with 82 in Q4 2014 and 113 in Q1
2014
 Financial buyers led nine M&A transactions in Q1 2015, vs five in Q4
2014 and three in Q1 2014
 The deal value for transactions led by strategic buyers increased to
US$25.8 Bn in Q1 2015, from US$7.0 Bn in Q4 2014 and US$7.7 Bn in
Q1 2014
 The deal value for transactions led by financial buyers was US$8.2 Bn in
Q1 2015, vs US$3.9 Bn in Q4 2014 and US$41.0 Mn in Q1 2014

Global: Deal Volume by Region Global: Deal Value by Region (US$ Bn)
Hardware Deal Activity by Region
115 106 104 98 102 91 88 91
126
103 100 102
120
75
112
103 98
94 77
80
73
84
86
96
70
80
93
73
53
44
60
53
42
47
50
57
56
59
71
73
61
57
4
5
2
7
5 4
2
5
5
10
9
6
8
4
11
4 12
9
2 7
4
8
8 2
5
6
6
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
4.9 5.5
3.1
10.4
31.3
4.2
11.0 10.8
7.7
16.8
9.4
11.1 35.0
59.4
2.1
4.6
1.9
0.8
0.4
8.2
6.5
0.9
1.7
1.6
0.6
3.6
7.6
28.1
11.9
1.3
7.1
3.6
3.4
2.4
1.6
5.0
2.6
5.3
2.5
4.7
2.2
11.7
0.01
0.9 0.2
0.5
0.3
0.02
0.1
0.8
0.1
0.6
0.3
0.02 0.1
0.1
0.1
1.1 0.1
0.3
0.01
0.01
0.005
0.1
0.02
0.001
2.0
1.3 0.4
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
 The US and Canada led M&A activity in the hardware industry, accounting
for ~41% of deals in Q1 2015. The number of deals in the region was 120
in Q1 2015, compared with 102 in Q4 2014 and 126 in Q1 2014
 Europe was the second most active market, with 93 transactions in Q1
2015
 The US and Canada accounted for over 49% of the deal value in the
hardware industry, which totaled US$35.0 Bn in Q1 2015, vs US$11.1 Bn
in Q4 2014 and US$7.7 Bn in Q1 2014
 Europe, with transactions worth US$7.6 Bn, remained the second largest
market in Q1 2015

Global: Average EV/ Revenue Multiple and TTM Revenue
1.5x
1.3x 1.3x
1.6x
1.4x
1.5x 1.5x
2.1x
2.7x
1.8x
2.2x 2.2x
1.8x
2.0x
53.2
186.0 261.3 171.0
1,117.3
286.9
606.0
174.5
67.7 102.8 100.0
163.2 235.3
568.6
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
US: Average EV/ Revenue Multiple and TTM Revenue
1.8x
1.6x
2.7x
2.1x
1.4x
1.6x
1.5x
2.9x
3.1x
2.0x 2.1x
3.0x
1.9x 2.0x
69.9 95.5 360.0 305.9
4,388.6
146.7 389.1 223.3 91.9 155.0 280.4 178.6
463.8 929.2
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
 The average EV/Revenue multiple was 1.8x in Q1 2015, compared with
2.2x in Q4 2014 and 2.7x in Q1 2014
 The target company’s average revenue rose to US$235.3 Mn in Q1 2015,
from US$163.2 Mn in Q4 2014 and US$67.7 Mn in Q1 2014
 The average EV/Revenue multiple decreased to 1.9x in Q1 2015, from
3.0x in Q4 2014 and 3.1x in Q1 2014
 The acquired company’s average revenue surged to US$463.8 Mn in Q1
2015, from US$178.6 Mn in Q4 2014 and US$91.9 Mn in Q1 2014
Global and US Hardware M&A Revenue Multiples

Global: Average EV/ EBITDA Multiple and TTM EBITDA US: Average EV/ EBITDA Multiple and TTM EBITDA
 The average EV/EBITDA multiple rose to 15.5x in Q1 2015 from 12.9x in
Q4 2014 and 12.4x in Q1 2014
 The acquired company’s average EBITDA rose to US$94.1 Mn in Q1
2015, vs US$38.4 Mn in Q4 2014 and US$13.5 Mn in Q1 2014
 The average EV/EBITDA multiple decreased to 16.4x in Q1 2015, from
17.8x in Q4 2014 and 16.9x in Q1 2014
 The acquired company’s average EBITDA surged to US$143.1 Mn in Q1
2015, from US$31.0 Mn in Q4 2014 and US$20.6 Mn in Q1 2014
Global and US Hardware M&A EBITDA Multiples
16.7x
12.2x
9.9x
11.1x
7.9x
8.7x
10.3x
11.9x
12.4x
13.8x
9.9x
12.9x
15.5x
17.4x
6.8
72.4 54.2
8.9
342.0
21.8 49.6
128.5
13.5 34.4 44.0 38.4
94.1
193.1
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
17.8x
13.4x
12.5x
25.4x
5.5x
9.1x
12.1x
20.4x
16.9x
14.5x
9.3x
17.8x
16.4x
18.4x
(1.5) 11.7 17.6 22.5
947.7
8.8 113.2 39.0 20.6 51.2 65.9 31.0 143.1
275.2
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*

Cross-Border M&A: Represents over one-fourth of global transactions; Deal value
surges in 2015
Global: Cross-Border M&A Deals
 Cross-border M&A activity remained buoyant in 2014, registering 342 deals over 251 deals in 2013. The deal value for disclosed deals totaled US$31.1 Bn in
2014, vs US$20.2 Bn in 2013
 The total number of cross-border M&A deals was 97 in Q1 2015, compared with 85 in Q4 2014 and 74 in Q1 2014. The deal value for disclosed deals surged to
US$27.2 Bn in Q1 2015, vs US$11.4 Bn in Q4 2014 and US$2.6 Bn in Q1 2014
3.2
7.9 6.2 5.5 1.0 7.3 6.5 5.4 2.6 9.1 7.9
11.4
27.2
73.6
106
85
97
79
61 58 59
73 74
94
89
85
97
74
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Cross-Border M&A Deal Value (USD Bn) Cross-Border M&A Deal Volume

US Cross-Border Hardware M&A Activity: Number of deals flat for past three years;
Deal value achieved record high in 2015
US: Inbound and Outbound Deals
 Inbound M&A deal volume in the US grew significantly to 76 in 2014, compared to 46 in 2013. US outbound M&A activity remained robust in 2014, recording 82
deals vs. 68 deals in 2013
 US inbound M&A activity was 19 in 2015’Q1, and similar to Q4 2014 (20). The deal value for disclosed deals rose to US$18.9 Bn in Q1 2015, from US$4.2 Bn in
Q4 2014 and US$100 Mn in Q1 2014. Outbound deals totaled 31 in Q1 2015, compared to 16 in Q4 2014 and 14 in Q1 2014. The deal value for disclosed deals
totaled US$3.6 Bn in Q1 2015, vs US$1.2 Bn in Q4 2014 and US$1.0 Bn in Q1 2014
0.3 1.2 0.2
3.9
0.2 1.3 0.5 0.4 0.1
6.0 7.0
4.2
18.9
38.7
0.4 2.6 4.4
0.7
0.4
0.1
0.4 0.9 1.0
2.0
0.5
1.2
3.6
2.6
11
15 18 17
12 14 14
6
17 20 20 19 19
16
34
26
37
22
18
11
19 20
14
23
29
16
31
18
12'Q1 12'Q2 12'Q3 12'Q4 13'Q1 13'Q2 13'Q3 13'Q4 14'Q1 14'Q2 14'Q3 14'Q4 15'Q1 15'Q2*
Inbound Deal Value (USD Bn) Outbound Deal Value (USD Bn) Inbound Deal Volume Outbound Deal Volume

Notable Transactions in Hardware Industry
2012
2013
2014
2015
YTD
Communications
Equipment
Electronic Equipment and
Instruments and
Components
Technology Hardware,
Storage and Peripherals
Semiconductors and
Semiconductor
Equipment
Technology Distributors
(USD10.0 Bn; NA)
(USD2.5 Bn; 0.7x)
(USD5.0 Bn; 0.3x)
(USD2.0 Bn; 6.1x)
(USD3.9 Bn; 3.2x)
(USD2.8 Bn; NA)
(USD23.1 Bn; 1.2x)
(USD5.1 Bn; NA)
(USD2.9 Bn; 1.5x)
(USD1.0 Bn; 2.0x)
(USD7.2 Bn; 1.8x)
(USD4.0 Bn; NA)
(USD2.6 Bn; 3.1x)
(USD1.7 Bn; 3.9x)
(USD6.5 Bn; 6.0x)
(USD2.4 Bn; 4.1x)
(USD804.0 Mn; NA)
(USD710.7 Mn; 0.8x)
(USD28.1 Bn; 0.4x)
(USD685 Mn; NA)
(USD3.4 Bn; NA)
(USD1.3 Bn; 2.7x)
(USD336.6 Mn; NA)
(USD215.0 Mn; 3.6x)
(USD3.7 Bn; 0.6x)
(USD2.7 Bn; 4.2x)
(USD6.6 Bn; 2.5x)
(USD1.7 Bn; 1.7x)
(USD3.0 Bn; 2.2x)
(USD2.4 Bn; 7.1x)
(USD36.7 Bn; 4.0x)
(USD18.2 Bn; 8.3x)
(USD857.0 Mn; 0.2x)
(USD525.8 Mn; NA)
(USD1.4 Bn; 12.4x)
(USD401.5 Mn; 0.3x)
(USD506.1 Mn; NA)
(USD439.4 Mn; 0.2x)
(USD182.8 Mn; NA)
(USD137.7 Mn; 0.2x)
Source: Capital-IQ; Text in brackets (Deal Value, EV / Revenue Multiple)
Memory Japan Technology
Focus Multimedia
Technology
(Shanghai) Join-In (Holding)
PSI Systems
Electric Power Control
System & others
SAMT
Giovanna Investment
Hong Kong Limited
and Others

Most Active Hardware Acquirers: Intel, Ametek and Arrow Electronics
Most Active Buyers by Number of Deals (Since 2012)
12
10
7 7 7
6 6 6
5 5 5
Intel Ametek Arrow Electronics Microchip
Technology
ABB Exclusive
Networks SAS
SBA
Communications
Lagercrantz Cansel Survey
Equipment
Google IHS Nigeria
Source: Capital-IQ; Note: M.Tech Holdings has not been included as it acquired nine of its related entities
CAD Worx
Warehouse
NDS West
Micro System
Telecom
tower assets
Nigeria and
Cameroon,
Rwanda,
Zambia and
Cote d'Ivoire
Telecom
tower assets

CONTENTS
Technology Trends 9
Executive Summary 5

Technology Stock Performance: Technology indices have outperformed broader
market indices, led by US; Volatility has trended down
Global Technology Market Performance
0
50
100
150
200
250
300
350
Jan-09 May-09 Oct-09 Feb-10 Jul-10 Nov-10 Apr-11 Aug-11 Jan-12 May-12 Oct-12 Feb-13 Jul-13 Nov-13 Apr-14 Aug-14 Jan-15 May-15
1-Month 3-Month 6-Month 1 Year 3 Year 5 Year
S&P Global Technology Index (0.6%) 0.4% 3.0% 13.5% 61.9% 89.8%
S&P Global Index (1.8%) 0.1% 1.3% 2.2% 51.2% 64.5%
S&P US Technology Index 0.3% 0.9% 3.6% 18.2% 72.7% 120.5%
S&P US Index (1.0%) (0.3%) 1.0% 8.6% 63.7% 96.5%
Source: Bloomberg
S&P US 500 Information
Technology Index
S&P Global 1200 Information
Technology Index
S&P 500 Index
S&P Global 1200 Index
0
10
20
30
40
50
60
Jan-09 May-09 Oct-09 Feb-10 Jul-10 Nov-10 Apr-11 Aug-11 Jan-12 May-12 Oct-12 Feb-13 Jul-13 Nov-13 Apr-14 Aug-14 Jan-15 May-15
Volatility: CBOE Volatility Index
Volatility falls below
historical average

Global: EV / Revenue Multiple
Global: EV / EBITDA Multiple
Global: Revenue (US$ per share)
Global: EBITDA (US$ per share)
Global Technology Stock Valuations: Technology stocks trade at an EV / Revenue
multiple premium compared to overall market, while EV / EBITDA multiples are at a discount
1.6x
1.5x
1.4x
1.5x
2.0x
2.3x 2.3x
2.2x
1.6x 1.6x
1.4x
1.5x
1.7x 1.7x
1.9x
1.8x
2009 2010 2011 2012 2013 2014 2015E 2016E
S&P Global 1200 Information Technology Index S&P Global 1200 Index
839
976
1,039 1,086
998 992 1,015 1,067
1,195 1,247
1,341 1,392 1,390 1,378
1,311
1,383
2009 2010 2011 2012 2013 2014 2015E 2016E
10.8x
8.1x
7.1x
8.0x
9.2x
9.6x
8.9x
8.3x
7.4x
9.4x
8.8x
7.8x
8.6x
9.8x 10.0x
9.5x
2009 2010 2011 2012 2013 2014 2015E 2016E
125
183
198 196
213
234
263
284
200
228
239 237 242 239 239
261
2009 2010 2011 2012 2013 2014 2015E 2016E
Source: Bloomberg

US: EV / Revenue Multiple
US: EV / EBITDA Multiple
US: Revenue (US$ per share)
US: EBITDA (US$ per share)
US Technology Stock Valuations: US technology stocks trade at a higher EV / Revenue
multiple premium compared to overall market, and a similar EV / EBITDA multiple discount
2.4x
2.2x
1.9x 2.0x
2.7x
3.0x 3.0x
2.9x
1.7x
1.8x
1.6x 1.7x
2.0x
2.1x 2.2x
2.1x
2009 2010 2011 2012 2013 2014 2015E 2016E
S&P US 500 Information Technology Index S&P 500 Index
140 163 190 204 196 210 217 228
903 939
1,019 1,064 1,099 1,144 1,129
1,200
2009 2010 2011 2012 2013 2014 2015E 2016E
10.9x
8.7x
7.4x 7.6x
9.9x
10.7x
9.5x
8.8x
10.1x 9.7x
8.4x
9.0x
10.7x
11.6x
10.9x
10.0x
2009 2010 2011 2012 2013 2014 2015E 2016E
31
42 49 53 53 59 68 74
150
173
194 200 208 212
230
251
2009 2010 2011 2012 2013 2014 2015E 2016E
Source: Bloomberg

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Disclaimer
 The Information and opinions in this report have been prepared by Aranca Research and Woodside Capital Partners, LLC. This
report is published solely for information purposes, and is not to be construed as an offer to sell or the solicitation of an offer to buy
any security in any state where such an offer or solicitation would be illegal. The information herein is based on sources that we
believe to be reliable but is not guaranteed by us and does not purport to be a complete statement or summary of the available
data.

Global Technology M&A Trends and Analysis – 1H 2015

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