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European Technology Update 14th March 2013

This report has been prepared by Harris Williams & Co. Ltd a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and

regulated by the Financial Services Authority (FRN #540892). Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

Thierry Monjauze

Managing Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 20 7518 8900 [email protected]

Francois Morin

Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 20 7518 8900 [email protected]

The Special Committee of Dell’s Board of Directors has issued a statement backing the sale of the IT solutions

provider and is conducting a ‘go-shop’ approach to determine if there are alternative transactions that would

deliver a superior outcome for Dell’s shareholders

Advanced Computer Software Group has acquired Computer Software Holdings, the provider of software

solutions and services for not-for-profit, legal and accounting industries, for £110 million from Hg Capital

FFastFill, the designer and application service provider for the electronic trading community, has been

acquired by Pattington for £81 million

Northgate Managed Services, the provider of IT consulting and data processing services, has been acquired by

Capita for £65 million

Arieso, the provider of geolocation-based solutions for wireless operators and service providers, has been

acquired by JDS Uniphase for $85 million

Sigma, the provider of IT, management and information logistics solutions, has been acquired by Danir for

SEK 300 million

Linedata Services has acquired CapitalStream, the provider of software and consulting services, from HCL

Technologies for $45 million

Logicalis Group has acquired Morse Spain, Morse Computer Group, 2e2 Guernsey and 2e2’s Netherlands

business, the providers of focused enterprise solutions and services, for €24 million

Voetbalzone, the online publisher of sports news, has been acquired by Perform Group for €13 million

Kofax has acquired altosoft corporation, the developer of business intelligence solutions, for $14 million

Bertelsmann has acquired BMG Rights Management, the provider of music rights management for artists and

songwriters, from Kohlberg Kravis Robert & Co.

Camilion Solutions, the provider of product development and management software to insurance companies,

has been acquired by SAP

DailyDeal, the discount online shopping portal, has been acquired by its founders from Google

ENQIO, the provider of data management, business analytics and multi-channel campaign management, has

been acquired by NGDATA

Equanet, the product and services supplier for IT management and procurement professionals, has been

acquired from DSG Retail by Kelway Holdings

Gas Powered Games, the computer game designer and developer, has been acquired by Wargaming

Gruppo MutuiOnline has acquired Money360.it, the online broker of retail financial and insurance products

TunedIn Media, the developer of TV-based applications for iPhones, has been acquired Axel Springer

LG has acquired the webOS technology business, comprising of the webOS operating system, documentation

and engineering talent, from Hewlett-Packard

Featured articles, videos and white papers are the highest ROI generating content marketing methods,

according to CopyPress

4G LTE revenues are set to reach more than $340 billion in 2017 globally, compared to over $75 billion this

year, according to Juniper Research

The global mobile market is set to hit a tipping point, overtaking feature phones for the first time, with

smartphones to account for more than 50% of global shipments in 2013, due to falling price points and a wider

range of devices, according to IDC

Users of mobile video calling services has been forecast to increase 400% to almost 160 million in 2017, driven

by user-interface improvements and advances in the underlying technology, according to Juniper Research

Tablet ownership in Western Europe is set to quadruple in the next five years as the percentage of online

consumers to own a tablet increases from 14% in 2012 to 55% in 2017, according to Forrester

Web traffic via tablets has overtaken that of smartphones for the first time with tablets claiming 8% of page

views compared to 7% for smartphone, according to Adobe

The UK uptake of portable devices, such as smartphones and tablets, are disrupting content viewing patterns as

households increase the number of connected devices to an average of 5.5 in 2012, according to eMarketer

Online banking in the UK has overtaken branch-based banking with over 80% of customers using online

banking and only 72% using branches, according Maritz Research

Recent Developments

Source: Various industry news outlets.

Company

Specific

News

Industry

Trends

1

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

Mar 2012 Jun 2012 Sep 2012 Dec 2012 Mar 2013

Nasdaq Composite Internet and Digital Media Software and IT Services Communications DJ Stoxx 600 Technology

(4%)

(3%)

(2%)

(1%)

0%

1%

2%

3%

4%

5%

08 Feb 13 Feb 18 Feb 23 Feb 28 Feb 05 Mar

Nasdaq Composite Internet and Digital Media Software and IT Services Communications DJ Stoxx 600 Technology

Stock

Performance

Comparable

Trading

Summary

Last Twelve Months

Last 30 Days

Public Market Trading Statistics

2

Sources: Capital IQ, 8 March 2013; Brokers’ reports.

3.9%

3.7%

3.2%

1.7%

1.1%

21.5%

17.1%

16.7%

14.7%

8.7%

CY2013E

EBITDA Margin Growth CY2013E CY2014E CY2013E CY2014E CY2013E CY2014E

Software and IT Services

Enterprise Applications 14.6% 7.0% 2.4x 2.0x 6.7x 9.6x 14.3x 12.4x

European Large Cap Software 33.2% 2.4% 3.9x 3.6x 11.7x 10.6x 18.8x 16.7x

Financial Software 26.0% 1.9% 2.4x 2.3x 9.5x 8.9x 17.8x 16.4x

Healthcare Software 21.9% 4.3% 2.4x 2.2x 10.2x 9.3x 18.0x 15.6x

Large Cap IT Services 13.5% 10.9% 1.0x 1.0x 7.1x 6.7x 14.4x 13.0x

Mid Cap IT Services 8.4% 8.8% 2.6x 2.1x 5.6x 5.2x 9.5x 8.5x

Offshore IT Services 22.9% 14.8% 2.6x 2.3x 11.1x 10.0x 16.5x 14.6x

Security Software 35.2% 4.6% 2.8x 2.7x 7.5x 6.8x 14.4x 13.0x

Communications

Digital Broadband 12.0% (5.0%) 0.6x 0.6x 5.4x 4.3x 11.0x 10.1x

Diversified Communication Equipment 8.9% 1.6% 0.9x 0.8x 9.3x 7.0x 28.1x 21.7x

Mobile Content / Solutions Providers 19.2% 15.3% 2.0x 1.5x 8.7x 7.0x 20.8x 17.3x

Mobile Infrastructure Software 19.2% 41.7% 2.4x 2.1x 10.9x 9.4x 15.9x 21.0x

Internet and Digital Media

Chinese Internet Leaders 21.6% 213.6% 3.0x 2.4x 11.4x 9.5x 15.4x 14.7x

Online Classifieds 39.7% 18.4% 5.9x 5.1x 11.7x 13.0x 18.4x 15.8x

Content Providers / Communities 20.4% 20.2% 3.4x 3.0x 9.5x 12.1x 20.5x 15.5x

Ecommerce 20.6% 16.9% 3.0x 2.6x 14.8x 11.4x 27.9x 23.1x

Global Internet Leaders 36.9% 20.8% 4.3x 3.6x 12.6x 10.3x 20.5x 16.8x

Interactive Entertainment 18.8% 6.2% 1.5x 1.4x 13.2x 10.8x 15.0x 13.4x

Intermediation and Comparison 20.2% 21.6% 3.7x 3.0x 15.4x 16.2x 20.5x 15.3x

Online Gambling 26.6% 2.0% 2.5x 2.4x 9.2x 8.7x 16.1x 14.7x

Online Marketing 15.1% 7.3% 1.7x 1.5x 10.5x 8.6x 19.6x 18.4x

Online Travel 27.4% 14.0% 3.4x 2.9x 11.5x 9.7x 19.4x 16.3x

P / EEV / Revenue EV / EBITDA

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%


European Large Cap Software Financial Software

Enterprise Applications Healthcare Software

Security Software Large Cap IT Services

Mid Cap IT Services Offshore IT Services

(10%)

(5%)

0%

5%

10%


European Large Cap Software Financial Software

Enterprise Applications Healthcare Software

Security Software Large Cap IT Services

Mid Cap IT Services Offshore IT Services


Source: Capital IQ, 8 March 2013.

Last Twelve Months Performance

Last 30 Days Performance

3

Large Cap IT Services 30.4%

European Large Cap Software 26.6%

Healthcare Software 25.6%

Financial Software 19.4%

Mid Cap IT Services 13.6%

Offshore IT Services 12.8%

Enterprise Applications 1.6%

Security Software (1.3% )

Healthcare Software 8.5%

Offshore IT Services 8.0%

Large Cap IT Services 6.2%

Financial Software 5.5%

European Large Cap Software 3.4%

Security Software 0.6%

Mid Cap IT Services (2.3% )

Enterprise Applications (4.7% )


(Continued)

4 Sources: Capital IQ, 8 March 2013; Brokers’ reports.

Market Enterprise CY2013E

Cap ($m) Value ($m) EBITDA Margin Growth CY2013E CY2014E CY2013E CY2014E CY2013E CY2014E

European Large Cap Software

SAP 98,814 102,225 34.6% 9.2% 4.4x 4.0x 12.6x 11.1x 18.4x 16.2x

Dassault Systemes 14,246 12,637 33.7% 4.0% 4.5x 4.2x 13.4x 12.0x 24.2x 21.7x

Sage 6,194 6,411 28.8% (4.7%) 3.1x 3.0x 10.6x 9.9x 15.5x 14.3x

Software AG 3,425 3,360 27.4% (1.4%) 2.4x 2.3x 8.9x 8.1x 14.6x 13.0x

Aveva 2,308 2,060 33.4% 3.0% 5.7x 5.1x 17.1x 14.8x 27.3x 23.8x

Micro Focus 1,561 1,531 43.6% 1.5% 3.6x 3.5x 8.2x 8.0x 11.7x 11.0x

Temenos 1,509 1,602 30.8% 5.2% 3.4x 3.2x 11.1x 10.2x 19.7x 17.2x

Mean 33.2% 2.4% 3.9x 3.6x 11.7x 10.6x 18.8x 16.7x

Median 33.4% 3.0% 3.6x 3.5x 11.1x 10.2x 18.4x 16.2x

Financial Software

Intuit 20,080 19,901 38.9% 15.1% 4.1x 3.8x 10.6x 10.0x 18.6x 17.3x

Temenos 1,509 1,602 30.8% 5.2% 3.4x 3.2x 11.1x 10.2x 19.7x 17.2x

SimCorp 1,132 1,056 25.5% 9.4% 3.5x 3.1x 13.7x 11.6x 21.1x 17.1x

Fidessa 1,088 980 28.2% (6.7%) 2.3x 2.2x 8.2x 7.8x 23.9x 22.6x

Innovation 364 328 14.1% (1.3%) 1.0x 1.0x 7.4x 6.7x 16.1x 14.1x

Linedata 163 218 23.2% 13.3% 1.0x 1.0x 4.4x 4.4x 8.6x 8.1x

Microgen 150 102 32.1% (13.6%) 2.2x 2.2x 8.7x 7.9x 14.5x 14.3x

StatPro 82 88 15.7% (6.5%) 1.8x 1.8x 11.8x 12.2x 19.9x 20.4x

Mean 26.0% 1.9% 2.4x 2.3x 9.5x 8.9x 17.8x 16.4x

Median 26.8% 2.0% 2.3x 2.2x 9.6x 8.9x 19.1x 17.2x

Enterprise Applications

Guidewire Software 2,087 1,921 12.0% 22.4% 6.2x 5.1x NM 35.2x NM NM

Jive Software 1,101 966 (17.1%) 35.3% 6.4x 4.9x NM NM NM NM

Unit 4 954 1,121 20.4% 3.6% 1.7x 1.6x 8.5x 7.6x 21.9x 17.2x

SDL 595 604 16.4% (3.7%) 1.4x 1.3x 8.7x 7.8x 13.8x 12.3x

IFS 479 458 14.0% 4.5% 1.1x 1.0x 7.6x 6.4x 17.6x 13.8x

Exact 453 383 22.7% (0.5%) 1.3x 1.3x 5.9x 5.6x 11.1x 10.4x

Kofax 368 288 16.7% (4.8%) 1.1x 1.1x 6.6x 6.2x 16.2x 14.2x

F-Secure 333 290 22.5% 4.5% 1.3x 1.2x 5.9x 5.2x 12.1x 10.6x

Cegid 179 275 23.5% 1.4% 0.8x 0.8x 3.3x 3.2x 7.0x 8.1x

Mean 14.6% 7.0% 2.4x 2.0x 6.7x 9.6x 14.3x 12.4x

Median 16.7% 3.6% 1.3x 1.3x 6.6x 6.3x 13.8x 12.3x

Healthcare Software

McKesson 25,459 27,212 2.7% 3.0% 0.2x 0.2x 8.1x 7.2x 13.8x 12.7x

Cerner 15,893 15,052 32.2% 13.7% 5.0x 4.4x 15.5x 13.3x 33.0x 28.0x

Allscripts Healthcare Solutions 2,188 2,528 18.7% 3.1% 1.7x 1.6x 8.9x 7.9x 18.2x 14.8x

CompuGroup 1,164 1,487 25.0% 5.4% 2.4x 2.2x 9.4x 8.7x 13.8x 11.4x

Advanced Computer Software 579 577 22.3% 1.3% 3.2x 3.0x 14.2x 13.6x 21.0x 19.7x

Emis 549 527 34.6% 2.7% 3.6x 3.4x 10.5x 9.6x 18.7x 16.6x

Cegedim 443 1,075 17.6% 0.5% 0.9x 0.9x 5.0x 4.8x 7.2x 6.3x

Mean 21.9% 4.3% 2.4x 2.2x 10.2x 9.3x 18.0x 15.6x

Median 22.3% 3.0% 2.4x 2.2x 9.4x 8.7x 18.2x 14.8x

EV / Revenue EV / EBITDA P / E


(Continued)




Security Software

Symantec 16,933 15,757 33.0% 2.6% 2.3x 2.2x 6.9x 5.8x 13.5x 11.6x

Check Point 10,492 8,989 58.0% 5.6% 6.3x 5.9x 10.9x 10.1x 14.9x 13.6x

Trend Micro 3,669 2,433 29.2% (4.6%) 2.4x 2.3x 8.1x 7.7x 23.4x 22.5x

AVG Technologies 757 802 33.3% 15.0% 2.0x 1.7x 5.9x 5.3x 7.8x 6.7x

F-Secure 333 290 22.5% 4.5% 1.3x 1.2x 5.9x 5.2x 12.1x 10.6x

Mean 35.2% 4.6% 2.8x 2.7x 7.5x 6.8x 14.4x 13.0x

Median 33.0% 4.5% 2.3x 2.2x 6.9x 5.8x 13.5x 11.6x

Large Cap IT Services

Accenture 50,484 45,290 16.5% 6.3% 1.5x 1.4x 9.2x 8.8x 17.8x 16.3x

Capita Group 8,706 10,697 15.9% 3.0% 1.9x 1.8x 12.0x 11.2x 15.8x 14.7x

CGI 7,965 10,865 14.7% 60.7% 1.1x 1.1x 7.4x 7.1x 12.0x 10.3x

Cap Gemini 7,936 6,953 9.9% (0.5%) 0.5x 0.5x 5.2x 4.9x 13.2x 12.1x

Computer Sciences 7,637 8,083 13.0% (4.1%) 0.5x 0.5x 4.1x 4.0x 14.6x 12.7x

Atos Origin 6,414 6,152 11.2% (0.2%) 0.5x 0.5x 4.7x 4.4x 12.7x 11.9x

Mean 13.5% 10.9% 1.0x 1.0x 7.1x 6.7x 14.4x 13.0x

Median 13.8% 1.4% 0.8x 0.8x 6.3x 6.0x 13.9x 12.4x

Mid Cap IT Services

Splunk 3,818 3,512 2.2% 39.4% 13.0x 9.8x NM NM NM NM

Indra Sistemas 2,008 2,835 9.7% 1.4% 0.7x 0.7x 7.5x 6.7x 10.2x 9.1x

Tieto 1,694 1,738 13.0% (5.6%) 0.8x 0.8x 5.9x 5.5x 13.8x 11.9x

Sopra 907 1,172 10.1% 6.3% 0.7x 0.7x 6.9x 6.5x 9.9x 9.0x

Groupe Steria 496 692 8.6% (1.8%) 0.3x 0.3x 3.4x 3.2x 5.8x 5.1x

GFI Informatique 223 290 6.9% 13.1% 0.3x 0.3x 4.2x 3.9x 7.8x 7.2x

Mean 8.4% 8.8% 2.6x 2.1x 5.6x 5.2x 9.5x 8.5x

Median 9.1% 3.8% 0.7x 0.7x 5.9x 5.5x 9.9x 9.0x

Offshore IT Services

Tata 57,042 55,889 28.3% 19.4% 4.3x 3.8x 15.2x 13.6x 20.4x 17.9x

Infosys 31,224 27,106 28.7% 14.5% 3.3x 3.0x 11.7x 10.5x 17.0x 15.2x

Cognizant 24,296 21,433 20.3% 17.3% 2.5x 2.1x 12.2x 10.5x 20.0x 17.2x

Wipro 20,044 18,159 19.8% 10.3% 2.2x 2.0x 10.9x 10.2x 15.7x 14.0x

HCL 9,886 9,588 20.7% 14.5% 1.9x 1.7x 9.4x 8.8x 14.6x 13.2x

Satyam 2,732 2,177 19.9% 13.1% 1.4x 1.3x 7.1x 6.7x 11.2x 10.4x

Mean 22.9% 14.8% 2.6x 2.3x 11.1x 10.0x 16.5x 14.6x

Median 20.5% 14.5% 2.3x 2.1x 11.3x 10.4x 16.4x 14.6x

P / EEV / Revenue EV / EBITDA

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%


Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%


Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers



Communications

6 Source: Capital IQ, 8 March 2013.

Digital Broadband 37.7%

Mobile Infrastructure Software 13.9%

Mobile Content / Solutions Providers 0.0%

Diversified Communication Equipment (10.0% )

Mobile Infrastructure Software 5.3%

Diversified Communication Equipment (0.8% )

Digital Broadband (1.3% )

Mobile Content / Solutions Providers (2.3% )

Communications

(Continued)




Digital Broadband

Technicolor 1,175 2,112 15.6% (6.8%) 0.5x 0.5x 3.0x 3.1x 8.2x 7.0x

Logitech 1,063 754 3.9% (10.5%) 0.4x 0.4x 9.7x 4.2x NM 13.3x

Pace 1,033 1,183 9.2% (5.3%) 0.5x 0.5x 5.4x 5.1x 8.7x 7.7x

TomTom 975 1,085 14.7% (13.1%) 0.9x 0.9x 6.1x 5.6x 13.8x 11.4x

Kudelski 703 881 14.4% (2.3%) 1.0x 0.9x 6.6x 6.2x 12.9x 12.2x

Parrot 426 321 16.1% 1.2% 0.8x 0.8x 5.2x 4.5x 13.0x 11.0x

Advanced Digital Broadcast 88 71 10.2% 1.8% 0.2x 0.2x 1.6x 1.5x 9.4x 7.6x

Mean 12.0% (5.0%) 0.6x 0.6x 5.4x 4.3x 11.0x 10.1x

Median 14.4% (5.3%) 0.5x 0.5x 5.4x 4.5x 11.2x 11.0x

Diversified Communication Equipment

LM Ericsson Telephone 40,707 33,457 13.0% 6.3% 0.9x 0.9x 7.0x 6.1x 15.5x 13.0x

Nokia 13,576 9,111 5.9% (3.8%) 0.2x 0.2x 4.0x 3.1x NM 19.6x

Alcatel-Lucent 3,388 4,202 6.0% (3.4%) 0.2x 0.2x 3.8x 2.8x NM 35.2x

CIENA 1,741 2,529 7.3% 8.8% 1.2x 1.2x 17.2x 11.8x 42.0x 20.4x

ADTRAN 1,287 1,104 12.3% 0.3% 1.8x 1.7x 14.5x 11.0x 26.9x 20.5x

Mean 8.9% 1.6% 0.9x 0.8x 9.3x 7.0x 28.1x 21.7x

Median 7.3% 0.3% 0.9x 0.9x 7.0x 6.1x 26.9x 20.4x

Mobile Infrastructure Software

QUALCOMM 114,513 101,289 38.9% 21.5% 4.1x 3.7x 10.5x 9.7x 14.8x 13.4x

VeriSign 7,137 6,278 63.0% 9.3% 6.6x 6.2x 10.4x 9.6x 20.5x 18.5x

Amdocs 5,830 4,869 20.7% 3.9% 1.4x 1.4x 6.9x 6.9x 12.3x 11.4x

Synchronoss Technologies 1,168 1,121 31.6% 25.5% 3.3x 2.7x 10.4x 8.4x 23.2x 18.7x

Sonus Networks 675 428 0.5% 4.2% 1.6x 1.5x NM NM NM 42.4x

Redknee Solutions 263 238 5.3% 250.4% 1.2x 0.9x 21.6x 21.6x NM NM

TeleCommunication Systems 131 247 10.3% (4.9%) 0.5x 0.5x 5.2x 4.9x 8.7x 8.4x

Smith Micro Software 53 21 (16.6%) 23.6% 0.4x 0.3x NM 4.6x NM 34.0x

Mean 19.2% 41.7% 2.4x 2.1x 10.9x 9.4x 15.9x 21.0x

Median 15.5% 15.4% 1.5x 1.4x 10.4x 8.4x 14.8x 18.5x

Mobile Content / Solutions Providers

Opera Software 811 756 26.9% 28.5% 2.7x 2.2x 10.2x 7.0x 19.6x 12.6x

GameLoft 541 484 17.6% 15.9% 1.5x 1.4x 8.6x 6.8x 16.6x 13.2x

Dada 67 102 13.1% 7.7% 0.9x 0.9x 7.1x 7.1x 26.2x 26.2x

Mean 19.2% 15.3% 2.0x 1.5x 8.7x 7.0x 20.8x 17.3x

Median 17.6% 12.5% 2.1x 1.4x 8.6x 7.0x 19.6x 13.2x

P / EEV / EBITDAEV / Revenue

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%


Global Internet Leaders Ecommerce

Online Travel Online Marketing

Content Providers / Communities Intermediation and Comparison

Online Classifieds Chinese Internet Leaders

Online Gambling Interactive Entertainment

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Global Internet Leaders Ecommerce

Online Travel Online Marketing

Content Providers / Communities Intermediation and Comparison

Online Classifieds Chinese Internet Leaders

Online Gambling Interactive Entertainment




8 Source: Capital IQ, 8 March 2013.

Online Marketing 7.3%

Interactive Entertainment 6.2%

Online Gambling 6.1%

Ecommerce 5.8%

Online Travel 5.5%

Content Providers / Communities 5.1%

Online Classifieds 3.0%

Global Internet Leaders 1.1%

Chinese Internet Leaders (1.0% )

Intermediation and Comparison (16.6% )

Online Gambling 68.5%

Ecommerce 38.7%

Online Travel 23.4%

Online Classifieds 19.1%

Global Internet Leaders 14.1%

Intermediation and Comparison 3.2%

Content Providers / Communities 2.2%

Chinese Internet Leaders (0.7% )

Online Marketing (5.5% )

Interactive Entertainment (12.7% )


(Continued)




Global Internet Leaders

Apple 405,410 365,590 32.6% 13.1% 2.0x 1.7x 6.0x 5.3x 9.5x 8.3x

Google 274,122 233,244 36.1% 16.7% 3.8x 3.3x 10.6x 9.1x 18.2x 15.6x

Microsoft 234,535 180,655 41.8% 16.6% 2.1x 2.0x 5.1x 4.7x 9.1x 8.5x

Amazon 124,633 117,570 6.4% 22.1% 1.6x 1.3x 24.1x 17.7x NM NM

eBay 68,884 63,995 33.1% 16.3% 3.9x 3.4x 11.8x 10.2x 19.3x 16.5x

Facebook 66,604 59,334 52.0% 32.1% 8.9x 7.0x 17.2x 13.0x 48.8x 35.7x

Baidu 31,196 28,087 48.7% 38.9% 5.7x 4.5x 11.8x 9.4x 16.7x 13.5x

Yahoo! 25,220 21,118 36.2% 3.1% 4.6x 4.5x 12.7x 12.1x 20.0x 18.6x

Yandex 8,168 7,771 45.2% 28.0% 6.5x 5.2x 14.3x 11.5x 22.4x 17.9x

Mean 36.9% 20.8% 4.3x 3.6x 12.6x 10.3x 20.5x 16.8x

Median 36.2% 16.7% 3.9x 3.4x 11.8x 10.2x 18.7x 16.1x

Ecommerce

Amazon 124,633 117,570 6.4% 22.1% 1.6x 1.3x 24.1x 17.7x NM NM

eBay 68,884 63,995 33.1% 16.3% 3.9x 3.4x 11.8x 10.2x 19.3x 16.5x

Facebook 66,604 59,334 52.0% 32.1% 8.9x 7.0x 17.2x 13.0x 48.8x 35.7x

Netflix 10,342 10,026 6.7% 18.7% 2.3x 2.0x 34.8x 21.2x NM NM

Mail.ru 7,383 6,361 51.9% 28.2% 7.3x 6.2x 14.0x 11.9x 23.0x 19.9x

Mercadolibre 4,091 3,900 37.3% 20.7% 8.6x 6.8x 23.0x 18.1x 34.0x 26.4x

IAC 3,671 3,607 18.9% 16.2% 1.1x 1.0x 5.9x 5.0x 11.8x 9.8x

Groupon 3,615 2,404 10.6% 9.8% 0.9x 0.8x 8.8x 7.6x 26.5x 18.3x

Shutterfly 1,612 1,367 18.7% 24.3% 1.8x 1.6x 9.8x 8.1x 26.3x 22.0x

OpenTable 1,443 1,340 43.4% 17.4% 7.1x 6.1x 16.3x 13.6x 33.1x 28.0x

Vistaprint 1,248 1,414 12.4% 13.4% 1.1x 1.0x 9.2x 7.8x 19.4x 13.8x

Ocado 1,161 1,161 5.2% 7.1% 1.0x 0.9x 19.6x 13.9x NM NM

YOOX 1,122 1,103 9.3% 23.9% 1.8x 1.5x 19.3x 14.1x NM 37.3x

Digital River 518 122 16.1% 2.5% 0.3x 0.3x 1.9x 2.0x 20.6x 17.8x

Blue Nile 444 358 5.4% 10.2% 0.8x 0.7x 14.6x 11.9x 44.6x 33.0x

Overstock 289 196 2.4% 7.3% 0.2x 0.2x 7.0x 6.4x 27.2x 21.9x

Mean 20.6% 16.9% 3.0x 2.6x 14.8x 11.4x 27.9x 23.1x

Median 14.2% 16.9% 1.7x 1.4x 14.3x 11.9x 26.4x 21.9x

Online Travel

Priceline 35,953 32,387 37.9% 24.1% 5.0x 4.2x 13.1x 10.8x 18.6x 15.7x

Amadeus 11,735 13,647 37.8% 3.5% 3.4x 3.2x 9.1x 8.4x 15.2x 13.7x

Expedia 8,762 8,183 19.3% 16.6% 1.8x 1.6x 9.1x 7.9x 18.9x 15.7x

Tripadvisor 7,292 7,218 40.8% 23.0% 7.7x 6.5x 18.9x 15.5x 29.3x 24.0x

Ctrip 2,840 2,333 19.5% 18.9% 2.9x 2.5x 14.9x 11.8x 17.7x 14.4x

Orbitz 531 841 17.0% 5.0% 1.0x 1.0x 6.1x 5.9x 17.4x 14.4x

Travelzoo 336 274 19.1% 6.9% 1.7x 1.6x 9.0x 7.9x 18.8x 16.1x

Mean 27.4% 14.0% 3.4x 2.9x 11.5x 9.7x 19.4x 16.3x

Median 19.5% 16.6% 2.9x 2.5x 9.1x 8.4x 18.6x 15.7x

Online Marketing

HomeAway 2,546 2,276 29.2% 21.9% 6.7x 5.6x 22.8x 18.4x NM NM

ValueClick 2,099 2,105 33.5% 13.8% 2.8x 2.5x 8.3x 7.4x 15.0x 13.3x

Constant Contact 438 344 15.3% 13.8% 1.2x 1.1x 7.9x 6.5x 22.6x 17.8x

1000mercis 175 136 31.5% 5.2% 2.7x 2.5x 8.6x 7.9x 14.7x 12.9x

Marchex 150 134 9.0% 4.7% 0.9x 0.8x 10.3x 6.6x 28.9x 14.4x

Hi-Media 111 134 9.5% 2.9% 0.5x 0.5x 5.3x 5.4x 9.7x 9.9x

TradeDoubler 107 82 3.4% (7.7%) 0.2x 0.2x 7.1x 5.6x 17.0x 12.9x

ad pepper media 27 13 1.5% 3.8% 0.2x 0.2x 11.2x 4.1x NM 29.6x

Mean 15.1% 7.3% 1.7x 1.5x 10.5x 8.6x 19.6x 18.4x

Median 9.5% 5.2% 0.9x 0.8x 8.6x 6.6x 17.0x 13.9x

Content Providers / Communities

LinkedIn 19,287 18,538 23.9% 57.5% 12.4x 9.0x NM 34.5x NM NM

Pandora Media 2,345 2,256 0.7% 44.5% 3.7x 2.7x NM NM NM NM

Perform Group 1,544 1,506 27.4% 22.0% 5.0x 4.4x 18.3x 14.3x 26.7x 20.7x

WebMD Health 1,191 999 16.5% (3.0%) 2.2x 2.1x 13.5x 11.4x NM NM

Demand Media 705 603 26.3% 14.1% 1.4x 1.3x 5.3x 4.6x 20.5x 16.0x

Move 417 390 15.1% 13.3% 1.7x 1.6x 11.5x 8.4x 22.2x 14.2x

Meetic 388 327 23.7% 14.8% 1.2x NA 5.3x NA 10.1x NA

XING 303 227 29.1% 11.4% 2.1x 1.9x 7.3x 5.8x 21.3x 15.4x

XO Group 224 151 21.2% 6.9% 1.1x 1.0x 5.2x 5.3x 22.3x 11.3x

Mean 20.4% 20.2% 3.4x 3.0x 9.5x 12.1x 20.5x 15.5x

Median 23.7% 14.1% 2.1x 2.0x 7.3x 8.4x 21.7x 15.4x

EV / EBITDA P / EEV / Revenue


(Continued)




Intermediation and Comparison

Zillow 1,681 1,487 18.9% 49.6% 8.7x 6.7x 46.2x 28.6x NM NM

Moneysupermarket 1,563 1,535 35.5% 3.1% 4.5x 4.2x 12.6x 11.6x 17.9x 16.3x

Bankrate 1,207 1,317 24.2% (3.3%) 2.9x 2.6x 12.0x 9.7x 24.5x 18.2x

Angie's List 1,127 1,089 (8.2%) 54.3% 4.5x 3.3x NM 47.8x NM NM

Liquidity Services 1,010 964 22.2% 11.4% 1.7x 1.4x 7.8x 6.3x 15.7x 12.6x

eHealth 354 214 15.3% 9.4% 1.2x 1.1x 8.1x 5.9x 27.0x 20.2x

Gruppo MutuiOnline 147 121 33.2% 26.3% 2.0x 1.4x 5.9x 3.8x 17.6x 9.4x

Mean 20.2% 21.6% 3.7x 3.0x 15.4x 16.2x 20.5x 15.3x

Median 22.2% 11.4% 2.9x 2.6x 10.1x 9.7x 17.9x 16.3x

Online Classifieds

SEEK 3,517 4,086 39.1% 28.4% 5.8x 4.9x 14.9x 12.5x 22.0x 18.3x

Rightmove 2,625 2,615 72.8% 4.8% 13.2x 11.9x 18.1x 16.4x 25.0x 22.0x

Carsales.au 2,242 2,200 55.5% 14.1% 9.2x 8.2x 16.6x 14.5x 24.3x 21.3x

SouFun 1,989 2,197 47.5% 26.5% 4.1x 3.5x 8.7x 7.5x 10.3x 8.9x

51job 1,626 1,220 36.0% 14.0% 4.6x 3.9x 12.7x 10.2x 18.1x 15.1x

Yelp 1,593 1,498 10.0% 54.7% 7.1x 5.1x NM 32.7x NM NM

Monster 589 605 19.7% (7.4%) 0.7x 0.7x 3.7x 3.5x 14.5x 12.2x

Dice 554 557 36.9% 11.9% 2.6x 2.4x 7.0x 6.3x 14.8x 13.0x

Mean 39.7% 18.4% 5.9x 5.1x 11.7x 13.0x 18.4x 15.8x

Median 38.0% 14.0% 5.2x 4.4x 12.7x 11.4x 18.1x 15.1x

Chinese Internet Leaders

Tencent 67,341 65,112 40.4% 30.6% 7.1x 5.6x 17.6x 14.1x 25.5x 20.0x

Baidu 31,196 28,087 48.7% 38.9% 5.7x 4.5x 11.8x 9.4x 16.7x 13.5x

Netease 7,102 4,560 47.1% 18.1% 3.0x 2.6x 6.3x 5.5x 10.8x 9.7x

Focus Media 3,419 2,925 46.2% 15.1% 2.7x 2.4x 5.8x 5.3x 9.6x 8.2x

Sina 3,293 2,588 11.5% 15.3% 4.3x 3.5x 37.2x 16.9x NM 33.0x

Youku Tudou 2,928 2,325 (4.3%) 70.5% 4.8x 3.2x NM 25.5x NM NM

SouFun 1,989 2,197 47.5% 26.5% 4.1x 3.5x 8.7x 7.5x 10.3x 8.9x

Sohu 1,711 1,276 25.7% 22.8% 1.0x 0.9x 3.8x 3.2x 15.5x 11.6x

Renren 1,155 263 (27.6%) 43.3% 1.1x 0.8x NM NM NM NM

Dangdang 317 264 (5.1%) 26.3% 0.3x 0.2x NM NM NM NM

Jiayuan 167 86 15.8% 20.8% 1.1x 0.9x 7.0x 5.5x 16.7x 12.9x

Taomee 145 26 13.1% 8.2% 0.6x 0.4x 4.5x 2.7x 18.3x 14.6x

Mean 21.6% 213.6% 3.0x 2.4x 11.4x 9.5x 15.4x 14.7x

Median 20.7% 24.6% 2.8x 2.5x 7.0x 11.2x 16.1x 12.9x

Online Gambling

Playtech 2,397 2,320 49.7% 6.9% 5.0x 4.9x 10.1x 9.5x 11.9x 11.2x

bwin.party digital entertainment 1,878 1,617 19.5% 2.7% 1.5x 1.4x 7.7x 7.3x 12.9x 12.2x

Betfair 1,090 914 19.3% (7.3%) 1.6x 1.6x 8.4x 7.7x 22.0x 18.7x

888 828 762 17.7% 5.8% 1.9x 1.8x 10.9x 10.3x 17.5x 16.6x

Mean 26.6% 2.0% 2.5x 2.4x 9.2x 8.7x 16.1x 14.7x

Median 19.4% 4.2% 1.8x 1.7x 9.2x 8.6x 15.2x 14.4x

Interactive Entertainment

Activision 16,527 12,152 33.5% (11.4%) 2.9x 2.6x 8.5x 7.2x 17.3x 14.4x

Electronic Arts 5,575 4,637 17.3% 9.0% 1.1x 1.1x 6.4x 6.1x 14.1x 15.4x

Zynga 2,804 1,619 6.4% (12.4%) 1.5x 1.5x 23.9x 13.7x NM NM

Take-Two Interactive Software 1,413 1,295 4.3% 44.8% 1.1x 1.1x 25.1x 25.1x NM NM

Ubisoft Entertainment 1,082 1,273 32.4% 1.0% 0.8x 0.7x 2.4x 2.0x 13.5x 10.5x

Mean 18.8% 6.2% 1.5x 1.4x 13.2x 10.8x 15.0x 13.4x

Median 17.3% 1.0% 1.1x 1.1x 8.5x 7.2x 14.1x 14.4x

P / EEV / EBITDAEV / Revenue

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TMT Group Overview

and Disclosures

Thierry Monjauze

Managing Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 20 7518 8900

[email protected]

Jeff Bistrong

Managing Director

Two International Place, 24th Floor

Boston, MA 02110

USA

Phone: +1 (617) 482-7501

[email protected]

Our Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition

and capital markets advisory services to market leading companies. Our extensive industry knowledge

and transaction leadership experience spans the software, digital media, IT services and communications

sectors. Our professionals in London, Boston and San Francisco have global relationships with leading

technology companies and financial investors. Thoughtful advice, deep experience and technology

expertise, creativity and attention to detail from our senior technology bankers have resulted in a track

record of consistently exceeding our clients' expectations.

1001 Haxall Point

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Phone: +1 (804) 648-0072

Fax: +1 (804) 648-0073

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