harris williams - european technology update...oak hill capital acquired pulsant, a uk-based...

European Technology Update22nd July 2014

Thierry Monjauze

Managing Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 (0) 20 7518 [email protected]

www.harriswilliams.com

www.harriswilliams.de

Jonathan Organ

Vice President

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 (0) 20 7518 [email protected]

France-based healthcare IT provider, Cegedim, received an offer from IMS Health, a US-based healthcare

and information technology provider, to acquire its CRM and Strategic Data divisions for €385m,

representing 0.9x and 6.0x revenue and EBITDA, respectively

Oak Hill Capital acquired Pulsant, a UK-based provider of pan-European data centres and managed

hosting services for £200m, representing approximately 11x 2014E EBITDA

ReadSoft, a Sweden-based provider of document processing automation solutions, has received multiple

competing offers from Lexmark, a US-based printing hardware and services provider, and Hyland, a UK-

based Enterprise Content Management solutions provider. The most recent bid from Lexmark values the

business at £115m, representing a per share premium of 181% to the volume-weighted average share price

three months prior to the initial bid

Vitruvian Partners acquired JacTravel Group, a UK-based wholesaler of B2B hotel accommodation and

inbound travel services provider, in a deal worth £80m

Opera Software, the Norwegian software developer, raised £76m in new capital through a private

placement. The proceeds are earmarked for future strategic acquisitions

Bridgepoint Development Capital acquired Phlexglobal, a UK-based provider of clinical research

document management for £42m, from Inflexion Private Equity

IMImobile successfully floated its shares on AIM, raising £30m at 120p per share, representing a

valuation of 7.0x 2015E EBITDA

Synchronoss, a US-based mobile cloud innovation and activation provider, acquired Voxmobili, a France-

based provider of social address book solutions, in a deal worth £15m

ECI Partners acquired ATG Media, a UK-based operator of real time auction-based websites and a

publisher of an antiques industry trade magazine, from Mobeus Private Equity

Vitruvian Partners made a strategic investment in ASP4all Bitbrains, a UK-based provider of managed

hosting and cloud services

Bonnier, a Sweden-based media group, acquired the outstanding shares (35%) of C Moore, the largest

premium Pay-TV provider in Scandinavia

Prime Focus World merged with Double Negative, a UK-based provider of visual effects to the global

film industry, in a HW&Co. led process

Exact Holding, the Dutch ERP provider, is understood to be in advanced discussions with a number of

private equity firm, including Apax and KKR, about a possible take-private

Visma acquired FMS Group, a Latvia-based provider of ERP and BI solutions with a strong foothold in

the Baltic region, expanding Visma’s existing Northern European presence

Monitise acquired Marcko Media and Last Second Ticketing, two UK-based mobile commerce providers

NetSuite acquired Venda, a UK-based provider of cloud-based eCommerce software solutions

Axel Springer Digital Ventures has acquired 20% in Qwant.com, a French-based start-up provider of

holistic overview solutions of search terms for end-users

Western European Mobile Shoppers in France, Germany, Italy, Spain and the UK increased their

smartphone shopping by 42% between March 2013 and March 2014. Italy and Spain recorded the

strongest growth rates relative to their peers. The total number of mobile smartphone shoppers now

amounts to 31.8m users in EU-5, up by 43% compared to the previous year, according to eMarketer

European Technology Spending is forecast to grow by 2.3% in 2014, increasing to 5% in 2015, as

customer-facing technologies for sales and marketing, mobile and analytics, and big data all boost

demand. Growth in computer equipment sales, excluding tablets, remain weak, according to Forrester

Recent Developments

Source: Various industry news outlets.

Company

Specific

News

Industry

Trends

1

http://www.emarketer.com/Article/Mobile-Shoppers-Western-Europe-Tap-Buy-Button-More/1011014

http://www.forrester.com/European+Tech+Spending+To+Rise+More+Than+2+In+2014+And+5+In+2015/-/E-PRE7124

(10%)

0%

10%

20%

30%

40%

50%

Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014

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

(4%)

(2%)

0%

2%

4%

6%

17 Jun 24 Jun 01 Jul 08 Jul 15 Jul

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, 16 July 2014; Brokers’ reports

2.0%

1.2%

(0.6% )

(0.8% )

(2.7% )

29.7%

26.1%

23.0%

16.9%

12.5%

CY2014E

EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

Software and IT Services

Enterprise Applications 12.8% 7.0% 3.6x 3.1x 14.9x 12.9x 21.7x 17.8x

European Large Cap Software 33.8% (0.1%) 4.1x 3.8x 12.1x 11.1x 18.9x 16.8x

Financial Software 26.0% 1.9% 2.9x 2.7x 11.1x 9.9x 20.5x 19.3x

Healthcare Software 20.6% 10.6% 2.4x 2.2x 11.5x 10.2x 18.1x 17.4x

Large Cap IT Services 14.4% 0.2% 1.1x 1.1x 7.4x 7.4x 15.2x 13.6x

Mid Cap IT Services 10.2% (2.6%) 0.7x 0.7x 7.2x 6.6x 14.2x 12.1x

Offshore IT Services 25.1% 12.8% 3.2x 2.8x 12.5x 11.3x 17.8x 15.8x

Security Software 26.2% 9.7% 4.7x 4.1x 13.0x 15.0x 17.4x 15.7x

Communications

Digital Broadband 11.5% (2.1%) 0.8x 0.7x 6.7x 5.9x 14.9x 14.4x

Diversified Communication Equipment 11.5% (13.0%) 1.2x 1.1x 10.3x 8.4x 20.4x 16.0x

Mobile Content / Solutions Providers 23.1% 19.4% 2.9x 2.2x 12.0x 8.8x 25.3x 17.3x

Mobile Infrastructure Software 18.5% 5.6% 2.7x 2.5x 13.7x 12.9x 17.3x 18.5x

Internet and Digital Media

Chinese Internet Leaders 6.9% 236.3% 4.0x 3.1x 18.3x 14.7x 25.4x 23.2x

Online Classifieds 39.2% 18.3% 7.1x 6.0x 13.6x 11.6x 22.0x 18.2x

Content Providers / Communities 17.6% 22.6% 4.9x 3.7x 16.0x 15.6x 33.0x 28.1x

Ecommerce 20.1% 13.8% 3.7x 3.1x 16.9x 14.3x 21.3x 20.9x

Global Internet Leaders 34.3% 17.3% 5.8x 4.9x 17.5x 14.2x 21.9x 21.1x

Interactive Entertainment 26.2% 21.2% 2.0x 1.9x 9.0x 7.4x 17.1x 15.8x

Intermediation and Comparison 17.3% 18.6% 4.4x 3.6x 14.9x 12.5x 19.8x 20.8x

Online Gambling 25.2% 2.2% 2.2x 2.1x 8.2x 8.4x 15.7x 15.8x

Online Marketing 17.4% 6.1% 2.4x 2.1x 14.3x 11.8x 19.3x 17.4x

Online Travel 26.7% 14.0% 4.9x 4.1x 13.9x 13.4x 21.8x 22.4x

P / EEV / Revenue EV / EBITDA

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

80%


Enterprise Applications Mid Cap IT Services

Offshore IT Services Financial Software

Healthcare Software Large Cap IT Services

Security Software European Large Cap Software

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%


Enterprise Applications Healthcare Software

Offshore IT Services Large Cap IT Services

Security Software Financial Software

European Large Cap Software Mid Cap IT Services


Source: Capital IQ, 16 July 2014

Last Twelve Months Performance

Last 30 Days Performance

3

Enterprise Applications 73.0%

Mid Cap IT Services 44.5%

Offshore IT Services 40.4%

Financial Software 22.7%

Healthcare Software 21.0%

Large Cap IT Services 20.8%

Security Software 12.5%

European Large Cap Software 8.8%

Enterprise Applications 5.3%

Healthcare Software 3.4%

Offshore IT Services 1.8%

Security Software 1.2%

Financial Software (1.0% )

Large Cap IT Services (2.5% )

European Large Cap Software (4.1% )

Mid Cap IT Services (6.3% )

Market Enterprise CY2014E

Cap ($m) Value ($m) EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

European Large Cap Software

SAP 55,297 55,067 36.0% (2.4%) 4.0x 3.8x 11.2x 10.5x 17.2x 15.7x

Dassault Systemes 9,152 8,078 32.1% 4.6% 4.5x 4.0x 13.9x 12.2x 26.6x 23.2x

Sage 4,132 4,493 30.0% (1.4%) 3.3x 3.2x 11.1x 10.4x 16.3x 14.9x

Temenos 1,489 1,544 33.1% 4.3% 5.2x 4.8x 15.8x 13.9x 26.7x 22.4x

Aveva 1,304 1,186 33.2% 7.7% 4.7x 4.3x 14.2x 12.4x 21.6x 19.1x

Software AG 1,212 1,317 26.4% (14.3%) 1.9x 1.9x 7.2x 7.0x 10.4x 9.8x

Micro Focus 1,185 1,340 45.6% 0.7% 5.2x 5.0x 11.3x 11.0x 13.6x 12.6x

Mean 33.8% (0.1%) 4.1x 3.8x 12.1x 11.1x 18.9x 16.8x

Median 33.1% 0.7% 4.5x 4.0x 11.3x 11.0x 17.2x 15.7x

Financial Software

Intuit 13,506 12,261 40.4% 6.7% 4.5x 4.2x 11.1x 10.7x 12.5x 21.3x

Temenos 1,489 1,544 33.1% 4.3% 5.2x 4.8x 15.8x 13.9x 26.7x 22.4x

SimCorp 831 790 25.8% 2.8% 4.1x 3.7x 15.9x 13.5x 24.2x 19.8x

Fidessa 819 746 27.1% 0.9% 2.6x 2.5x 9.7x 9.2x 25.6x 24.0x

Innovation 395 338 16.0% 11.0% 1.4x 1.3x 9.0x 7.8x 19.0x 16.5x

Linedata 132 164 24.9% (6.6%) 1.3x 1.3x 5.2x 5.1x 10.3x 9.7x

Microgen 93 72 26.4% (1.7%) 2.5x 2.4x 9.3x 8.3x 20.2x 18.3x

StatPro 59 55 14.0% (1.8%) 1.7x 1.7x 12.4x 11.1x 25.3x 22.6x

Mean 26.0% 1.9% 2.9x 2.7x 11.1x 9.9x 20.5x 19.3x

Median 26.1% 1.8% 2.5x 2.4x 10.4x 10.0x 22.2x 20.6x

Enterprise Applications

Splunk 3,220 2,738 2.9% 34.7% 11.4x 8.6x NM NM NM NM

Guidewire Software 1,507 1,256 17.4% 10.0% 6.0x 5.4x 34.3x 31.3x NM NM

Exact 554 507 21.3% (2.4%) 2.9x 2.8x 13.7x 13.0x 24.2x 22.9x

IFS 519 494 20.0% (4.8%) 2.0x 1.9x 10.0x 8.9x 23.3x 19.4x

Kofax 380 324 13.3% 4.0% 1.8x 1.7x 13.6x 9.9x 24.0x 18.2x

Jive Software 328 266 (7.2%) 15.2% 2.6x 2.2x NM NM NM NM

SDL 275 277 7.7% 2.3% 1.0x 1.0x 13.2x 10.2x 25.0x 17.2x

Cegid 199 243 26.6% (3.0%) 1.2x 1.1x 4.4x 4.2x 12.0x 11.2x

Mean 12.8% 7.0% 3.6x 3.1x 14.9x 12.9x 21.7x 17.8x

Median 15.4% 3.2% 2.3x 2.1x 13.4x 10.0x 24.0x 18.2x

Healthcare Software

McKesson 25,464 30,321 2.8% 21.6% 0.3x 0.3x 11.5x 9.9x 18.5x 15.9x

Cerner 10,742 10,234 35.0% 10.8% 5.3x 4.6x 15.0x 13.1x 32.5x 27.6x

Allscripts Healthcare Solutions 1,722 2,018 15.8% 0.2% 2.4x 2.3x 15.4x 12.8x NM 29.6x

CompuGroup 777 1,006 20.9% 5.8% 2.5x 2.4x 11.9x 10.3x 15.3x 12.9x

Advanced Computer Software 556 604 23.1% 17.6% 2.8x 2.7x 12.2x 11.4x NA 15.6x

Emis 426 443 33.2% 29.4% 3.3x 3.1x 9.9x 9.5x 17.4x 16.1x

Cegedim 272 653 17.7% (7.3%) 0.9x 0.9x 5.3x 5.1x 9.3x 7.9x

Allocate Software 80 73 16.7% 6.7% 1.8x 1.7x 10.6x 9.7x 15.6x 13.9x

Mean 20.6% 10.6% 2.4x 2.2x 11.5x 10.2x 18.1x 17.4x

Median 19.3% 8.7% 2.5x 2.3x 11.7x 10.1x 16.5x 15.8x

EV / Revenue EV / EBITDA P / E


(Continued)

4Sources: Capital IQ, 16 July 2014; Brokers’ reports



Security Software

Symantec 9,247 8,087 32.0% (4.5%) 2.1x 2.0x 6.5x 6.2x 12.4x 11.4x

Check Point 7,146 6,441 57.3% 2.4% 7.5x 7.1x 13.1x 12.3x 17.7x 16.2x

Palo Alto Networks 3,490 3,275 12.3% 35.7% 8.3x 6.3x NM 38.4x NM NM

Trend Micro 2,707 2,143 33.7% 5.4% 3.3x 3.2x 9.8x 9.6x 23.7x 22.8x

Proofpoint 741 682 (2.0%) 31.0% 6.5x 5.3x NM NM NM NM

AVG Technologies 600 581 37.2% (7.2%) 2.6x 2.3x 7.0x 6.3x 9.6x 8.7x

Qualys 461 399 17.0% 16.7% 5.3x 4.4x 31.0x 23.1x NM NM

F-Secure 332 290 21.7% (2.1%) 2.3x 2.2x 10.6x 9.3x 23.6x 19.7x

Mean 26.2% 9.7% 4.7x 4.1x 13.0x 15.0x 17.4x 15.7x

Median 26.9% 3.9% 4.3x 3.8x 10.2x 9.6x 17.7x 16.2x

Large Cap IT Services

Accenture 29,373 27,340 16.4% 1.4% 1.5x 1.5x 9.4x 8.9x 17.2x 15.9x

Capita Group 7,563 8,999 15.5% 11.1% 2.1x 1.9x 13.4x 12.4x 17.8x 16.4x

Cap Gemini 6,451 6,004 10.7% (2.7%) 0.7x 0.7x 6.8x 6.3x 14.7x 13.1x

CGI 6,434 7,912 15.8% 2.5% 0.8x 1.3x 4.9x 7.8x 12.9x 11.6x

Computer Sciences 5,388 5,665 16.8% (6.4%) 0.8x 0.7x 4.5x 4.3x 14.9x 12.7x

Atos Origin 4,681 3,990 11.1% (4.5%) 0.6x 0.6x 5.2x 4.7x 13.4x 12.0x

Mean 14.4% 0.2% 1.1x 1.1x 7.4x 7.4x 15.2x 13.6x

Median 15.7% (0.7%) 0.8x 1.0x 6.0x 7.0x 14.8x 12.9x

Mid Cap IT Services

Indra Sistemas 1,538 2,027 9.3% (3.6%) 0.9x 0.8x 9.2x 8.3x 16.4x 13.2x

Tieto 1,222 1,211 13.4% (12.1%) 1.0x 1.0x 7.3x 6.7x 15.7x 13.5x

Sopra 674 797 9.8% 2.7% 0.7x 0.7x 7.1x 6.4x 11.0x 9.7x

Groupe Steria 444 630 8.4% 1.3% 0.4x 0.4x 5.1x 4.7x 10.8x 8.6x

GFI Informatique 292 328 NA (1.2%) 0.5x 0.5x NA 7.0x 17.2x 15.6x

Mean 10.2% (2.6%) 0.7x 0.7x 7.2x 6.6x 14.2x 12.1x

Median 9.6% (1.2%) 0.7x 0.7x 7.2x 6.7x 15.7x 13.2x

Offshore IT Services

Tata 45,666 43,864 29.4% 17.9% 5.0x 4.3x 16.9x 15.0x 22.1x 19.5x

Infosys 17,916 15,234 27.0% 7.7% 3.0x 2.8x 11.1x 10.4x 15.7x 14.5x

Cognizant 17,544 15,288 20.5% 13.1% 2.5x 2.2x 12.3x 10.6x 19.5x 16.9x

Wipro 12,740 11,486 23.5% 12.0% 2.5x 2.3x 10.8x 10.1x 15.3x 13.8x

HCL 9,967 9,345 25.3% 13.5% 2.8x 2.5x 11.2x 10.4x 16.2x 14.4x

Mean 25.1% 12.8% 3.2x 2.8x 12.5x 11.3x 17.8x 15.8x

Median 25.3% 13.1% 2.8x 2.5x 11.2x 10.4x 16.2x 14.5x



(Continued)

5


(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%


Mobile Infrastructure Software Digital Broadband

Mobile Content / Solutions Providers Diversified Communication Equipment

(10%)

0%

10%

20%

30%

40%

50%

60%


Digital Broadband Diversified Communication Equipment

Mobile Content / Solutions Providers Mobile Infrastructure Software



Communications

6Source: Capital IQ, 16 July 2014

Diversified Communication Equipment 29.6%

Digital Broadband 40.7%

Mobile Content / Solutions Providers 17.2%

Mobile Infrastructure Software 16.8%

Digital Broadband 0.9%

Mobile Infrastructure Software 0.8%

Mobile Content / Solutions Providers (2.3% )

Diversified Communication Equipment (5.0% )



Digital Broadband

Technicolor 1,527 2,091 16.4% (7.5%) 0.8x 0.8x 4.7x 4.5x 11.3x 9.1x

Logitech 1,229 1,011 9.1% 0.6% 0.8x 0.8x 8.9x 8.6x 19.8x 17.6x

Pace 1,084 1,064 10.3% 6.5% 0.7x 0.7x 6.4x 6.1x 11.7x 10.6x

TomTom 989 955 14.6% (7.6%) 1.3x 1.3x 9.0x 8.5x 21.4x 22.4x

Kudelski 569 627 14.1% 1.5% 1.0x 1.0x 7.4x 6.8x 15.0x 13.8x

Parrot 177 114 6.8% (7.5%) 0.6x 0.6x 8.9x 5.1x NM 16.8x

Advanced Digital Broadcast 44 26 9.0% (0.4%) 0.1x 0.1x 1.3x 1.3x 10.4x 10.4x

Mean 11.5% (2.1%) 0.8x 0.7x 6.7x 5.9x 14.9x 14.4x

Median 10.3% (0.4%) 0.8x 0.8x 7.4x 6.1x 13.4x 13.8x

Diversified Communication Equipment

LM Ericsson Telephone 21,759 17,123 12.6% (9.9%) 0.9x 0.9x 7.1x 6.2x 16.5x 13.8x

Nokia 16,264 14,657 12.9% (51.1%) 1.5x 1.5x 11.8x 10.6x 25.3x 19.8x

Alcatel-Lucent 5,770 6,452 8.7% (10.5%) 0.6x 0.6x 6.8x 5.3x NM 16.2x

CIENA 1,239 1,706 10.5% 5.7% 1.2x 1.1x 11.7x 9.3x 18.8x 13.6x

ADTRAN 748 704 13.0% 0.7% 1.8x 1.6x 13.9x 10.8x 20.9x 16.3x

Mean 11.5% (13.0%) 1.2x 1.1x 10.3x 8.4x 20.4x 16.0x

Median 12.6% (9.9%) 1.2x 1.1x 11.7x 9.3x 19.9x 16.2x

Mobile Infrastructure Software

QUALCOMM 78,422 68,726 38.7% 3.9% 4.3x 3.9x 11.1x 10.2x 14.8x 13.6x

Amdocs 4,421 3,774 20.0% 3.4% 1.8x 1.7x 8.9x 8.3x 14.7x 13.9x

VeriSign 3,805 3,603 65.0% 1.5% 6.1x 5.8x 9.4x 8.8x 18.7x 16.5x

Synchronoss Technologies 817 789 33.8% 17.7% 3.2x 2.7x 9.4x 7.9x 20.5x 17.1x

Sonus Networks 577 485 0.7% 6.6% 2.8x 2.5x NM NM NM 35.8x

Redknee Solutions 319 278 5.1% 29.1% 1.8x 1.8x 35.7x 35.7x NA NA

TeleCommunication Systems 114 161 9.6% (5.2%) 0.8x 0.7x 7.8x 6.5x 17.6x 14.3x

Smith Micro Software 23 16 (24.9%) (12.3%) 0.7x 0.6x NM NM NM NM

Mean 18.5% 5.6% 2.7x 2.5x 13.7x 12.9x 17.3x 18.5x

Median 14.8% 3.7% 2.3x 2.2x 9.4x 8.6x 17.6x 15.4x

Mobile Content / Solutions Providers

Opera Software 1,037 990 26.8% 32.2% 4.1x 3.0x 15.3x 10.7x 26.9x 17.7x

GameLoft 397 350 19.5% 6.6% 1.7x 1.5x 8.6x 6.9x 23.7x 16.8x

Mean 23.1% 19.4% 2.9x 2.2x 12.0x 8.8x 25.3x 17.3x

Median 23.1% 19.4% 2.9x 2.2x 12.0x 8.8x 25.3x 17.3x


Communications

(Continued)

7


(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

12%


Online Travel Online Classifieds

Chinese Internet Leaders Global Internet Leaders

Ecommerce Content Providers / Communities

Online Marketing Interactive Entertainment

Online Gambling Intermediation and Comparison

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

80%


Content Providers / Communities Chinese Internet Leaders

Global Internet Leaders Interactive Entertainment

Online Marketing Online Classifieds

Online Travel Intermediation and Comparison

Ecommerce Online Gambling




8Source: Capital IQ, 16 July 2014

Online Travel 6.6%

Online Classifieds 5.6%

Chinese Internet Leaders 5.1%

Global Internet Leaders 3.7%

Ecommerce 1.2%

Content Providers / Communities (0.2% )

Online Marketing (0.5% )

Interactive Entertainment (1.1% )

Online Gambling (3.6% )

Intermediation and Comparison (7.4% )

Content Providers / Communities 39.4%

Online Classifieds 35.6%

Global Internet Leaders 30.5%

Interactive Entertainment 27.5%

Online Marketing 25.3%

Online Gambling 21.7%

Online Travel 10.7%

Chinese Internet Leaders 2.5%

Ecommerce (0.3% )

Intermediation and Comparison (9.8% )



Global Internet Leaders

Apple 333,494 319,236 32.8% 3.5% 2.9x 2.8x 9.0x 8.4x 14.5x 13.4x

Google 227,246 196,862 39.6% 7.5% 5.1x 4.4x 12.9x 10.8x NA NA

Microsoft 212,482 175,022 33.8% 11.4% 3.2x 2.9x 9.3x 8.5x 16.3x 15.1x

Facebook 101,327 94,186 62.4% 50.0% 13.6x 10.3x 21.8x 16.5x NM 36.9x

Amazon 95,570 91,424 7.3% 17.1% 1.7x 1.4x 23.7x 17.8x NM NM

Baidu 38,733 36,879 30.3% 44.6% 8.1x 6.0x 26.9x 18.9x 34.8x 25.1x

eBay 37,496 36,545 32.8% 9.4% 3.4x 3.0x 10.5x 9.4x 17.0x 15.0x

Yahoo! 19,852 18,687 28.1% (5.4%) 7.4x 7.1x 26.3x 23.7x 23.5x 22.4x

Yandex 5,974 5,891 41.8% 17.7% 7.0x 5.7x 16.8x 13.2x 25.5x 20.4x

Mean 34.3% 17.3% 5.8x 4.8x 17.5x 14.2x 21.9x 21.2x

Median 32.8% 11.4% 5.1x 4.4x 16.8x 13.2x 20.2x 20.4x

Ecommerce

Facebook 101,327 94,186 62.4% 50.0% 13.6x 10.3x 21.8x 16.5x NM 36.9x

Amazon 95,570 91,424 7.3% 17.1% 1.7x 1.4x 23.7x 17.8x NM NM

eBay 37,496 36,545 32.8% 9.4% 3.4x 3.0x 10.5x 9.4x 17.0x 15.0x

Netflix 15,548 14,922 11.1% 20.7% 4.7x 3.8x NM 28.9x NM NM

Mail.ru 4,222 3,554 53.0% 13.9% 6.4x 5.4x 12.0x 10.2x 19.5x 16.1x

IAC 3,189 3,226 18.7% 1.7% 1.7x 1.6x 9.2x 7.6x 18.2x 14.6x

Groupon 2,508 1,901 9.3% 22.4% 1.0x 0.9x 11.0x 8.1x NM 24.6x

Mercadolibre 2,341 2,222 32.0% (1.2%) 7.9x 6.7x 24.8x 21.0x NM 31.5x

Ocado 2,333 2,327 7.4% 21.1% 2.5x 2.1x 33.2x 24.7x NM NM

OpenTable 1,417 1,348 38.2% 15.4% 10.2x 8.8x 26.8x 22.2x NM NM

Shutterfly 1,072 1,019 18.6% 13.4% 1.9x 1.7x 10.3x 8.2x NM NM

YOOX 935 961 10.3% 14.1% 2.2x 1.8x 21.4x 16.8x NM NM

Vistaprint 734 822 14.1% 6.5% 1.0x 1.0x 7.5x 7.0x 12.7x 11.4x

Digital River 276 123 12.2% (6.3%) 0.6x 0.5x 4.6x 3.4x 27.8x 16.9x

Overstock 201 132 2.6% 5.1% 0.2x 0.2x 6.2x 5.3x 21.8x 15.6x

Blue Nile 196 163 5.2% 3.8% 0.6x 0.5x 11.0x 9.5x 31.8x 26.2x

Mean 20.1% 13.8% 3.6x 3.0x 16.7x 14.2x 21.2x 20.9x

Median 12.2% 13.9% 2.2x 1.8x 11.5x 10.2x 19.5x 16.5x

Online Travel

Priceline 37,440 33,925 40.1% 21.0% 6.9x 5.7x 17.1x 14.0x 23.4x 19.2x

Amadeus 10,419 11,827 38.5% 3.8% 4.4x 4.1x 11.5x 10.8x 19.6x 18.1x

Tripadvisor 8,488 8,429 40.1% 27.8% 11.7x 9.3x 29.1x 22.5x NM 35.9x

Expedia 6,014 5,827 17.7% 15.0% 1.8x 1.6x 10.0x 8.7x 20.7x 17.7x

Ctrip 4,798 4,320 15.8% 29.6% 6.3x 4.9x 39.8x 23.0x NM 31.0x

Orbitz 577 689 17.0% 5.3% 1.3x 1.2x 7.6x 6.8x 26.8x 19.0x

Travelzoo 163 116 17.7% (4.7%) 1.3x 1.2x 7.2x 6.3x 18.6x 16.1x

Mean 26.7% 14.0% 4.8x 4.0x 17.5x 13.2x 21.8x 22.4x

Median 17.7% 15.0% 4.4x 4.1x 11.5x 10.8x 20.7x 19.0x

Online Marketing

HomeAway 1,752 1,485 27.1% 23.9% 5.8x 4.8x 21.3x 17.8x NM NM

Conversant 942 921 34.5% 4.1% 2.6x 2.4x 7.4x 6.7x 13.8x 12.4x

Constant Contact 589 513 18.2% 11.9% 2.7x 2.3x 14.6x 11.8x 31.5x 25.3x

Marchex 300 267 7.8% 21.1% 2.4x 2.2x 31.4x 25.6x NM NM

1000mercis 117 84 24.1% 5.7% 2.4x 2.1x 9.9x 7.1x 17.2x 14.5x

Hi-Media 94 94 6.0% (3.6%) 0.6x 0.6x 10.5x 8.8x NM 23.2x

TradeDoubler 39 24 3.9% (20.2%) 0.2x 0.1x 4.1x 3.6x 15.0x 11.5x

Mean 17.4% 6.1% 2.4x 2.1x 14.2x 11.6x 19.4x 17.4x

Median 18.2% 5.7% 2.4x 2.2x 10.5x 8.8x 16.1x 14.5x

Content Providers / Communities

Twitter 12,875 11,718 16.2% 91.8% 15.8x 9.8x NM NM NM NM

LinkedIn 11,203 9,860 24.7% 35.5% 7.9x 6.0x 32.2x 22.0x NM NM

Pandora Media 3,133 2,934 6.5% 37.4% 5.6x 4.3x NM 37.3x NM NM

WebMD Health 1,105 1,206 26.9% 8.6% 3.6x 3.2x 13.3x 11.0x 39.7x 32.3x

Perform Group 585 534 18.3% 22.1% 2.1x 1.9x 11.7x 9.8x 21.8x 16.2x

XING 398 335 28.4% 8.5% 4.4x 3.9x 15.7x 11.9x 37.3x 27.1x

Move 334 315 11.7% 8.5% 2.1x 1.9x 18.1x 13.4x NM 27.6x

Demand Media 249 213 13.2% (10.4%) 1.0x 0.9x 7.6x 6.9x NM NM

XO Group 182 134 12.3% 1.4% 1.6x 1.5x 13.2x 12.3x NM 37.4x

Mean 17.6% 22.6% 4.9x 3.7x 16.0x 15.6x 32.9x 28.1x

Median 16.2% 8.6% 3.6x 3.2x 13.3x 12.1x 37.3x 27.6x

EV / EBITDA P / EEV / Revenue


(Continued)

9Sources: Capital IQ, 16 July 2014; Brokers’ reports



Intermediation and Comparison

Zillow 2,981 2,800 16.1% 53.7% 15.4x 11.4x NM NM NM NM

Bankrate 1,097 1,128 27.0% 16.3% 3.5x 3.2x 13.1x 11.2x 26.3x 21.7x

Moneysupermarket 1,016 1,040 37.4% 5.7% 4.4x 4.1x 11.6x 10.8x 15.9x 14.7x

eHealth 362 305 8.2% 13.2% 2.5x 2.1x 30.5x 19.3x NM NM

Angie's List 359 330 0.3% 29.7% 1.7x 1.4x NM 15.2x NM 35.5x

Liquidity Services 248 189 14.9% (1.9%) 0.6x 0.7x 4.3x 6.1x 11.4x 15.6x

Gruppo MutuiOnline 146 136 21.1% 13.3% 2.8x 2.5x 13.2x NA 25.7x 16.6x

Mean 17.8% 18.6% 4.4x 3.6x 14.5x 12.5x 19.8x 20.8x

Median 16.1% 13.3% 2.8x 2.5x 13.1x 11.2x 20.8x 16.6x

Online Classifieds

Yelp 2,847 2,614 16.0% 54.2% 12.2x 8.5x NM NM NM NM

SEEK 3,113 3,548 43.1% 17.6% 8.2x 7.3x 19.1x 16.1x 29.0x 23.9x

SouFun 2,409 2,197 47.9% 18.1% 5.0x 4.2x 10.4x 8.3x 14.8x 11.7x

Rightmove 2,104 2,127 73.7% 16.3% 13.2x 11.7x 17.9x 15.7x 23.7x 20.4x

Carsales.au 1,466 1,501 58.7% 14.0% 10.8x 9.6x 18.3x 16.1x 25.9x 22.4x

51job 1,195 886 29.2% 13.6% 4.9x 4.3x 16.6x 12.9x 21.5x 18.4x

Monster 335 438 15.0% (4.1%) 0.9x 0.9x 6.3x 5.7x 15.9x 12.7x

Dice 244 304 30.0% 16.9% 2.1x 2.0x 6.9x 6.5x 23.7x 18.5x

Mean 39.2% 18.3% 7.2x 6.1x 13.6x 11.6x 22.1x 18.3x

Median 36.6% 16.6% 6.6x 5.8x 16.6x 12.9x 23.7x 18.5x

Chinese Internet Leaders

Tencent 86,522 83,584 39.5% 23.7% 11.2x 9.2x 28.3x 22.5x 36.9x 29.6x

Baidu 38,733 36,879 30.3% 44.6% 8.1x 6.0x 26.9x 18.9x 34.8x 25.1x

Netease 6,197 4,426 47.4% 7.3% 4.4x 3.8x 9.3x 7.5x 13.9x 11.8x

Youku Tudou 2,496 2,190 8.8% 29.2% 5.7x 4.1x NM 26.6x NM 38.4x

SouFun 2,409 2,197 47.9% 18.1% 5.0x 4.2x 10.4x 8.3x 14.8x 11.7x

Sina 1,804 1,493 8.1% 15.5% 3.3x 2.6x NM 14.4x NM 24.5x

Sohu 1,258 985 (4.9%) 18.2% 1.0x 0.8x NM 6.6x NM NM

Renren 685 110 (113.9%) (46.7%) 2.0x 1.2x NM NM NM NM

Dangdang 600 470 2.4% 23.0% 0.6x 0.5x 25.8x 11.3x NM 32.9x

Taomee 107 42 2.5% 2.7% 1.4x 1.2x NM 25.5x NM NM

Jiayuan 95 40 7.9% 16.5% 0.7x 0.6x 9.1x 4.8x 26.6x 11.9x

Mean 6.9% 235.7% 3.9x 3.1x 18.3x 14.6x 25.4x 23.2x

Median 8.1% 18.1% 3.3x 2.6x 18.1x 14.3x 26.6x 24.8x

Online Gambling

Playtech 1,809 1,338 43.1% 6.7% 4.1x 3.9x 9.4x 9.1x 14.2x 13.8x

Betfair 1,050 843 21.7% 6.8% 2.1x 1.9x 9.5x 9.9x 21.2x 22.2x

bwin.party digital entertainment 694 583 16.9% (8.9%) 1.1x 1.1x 6.7x 6.0x 13.6x 12.0x

888 414 339 19.2% 4.1% 1.4x 1.3x 7.1x 8.2x 13.3x 14.9x

Mean 25.2% 2.2% 2.2x 2.0x 8.2x 8.3x 15.6x 15.7x

Median 20.4% 5.4% 1.7x 1.6x 8.3x 8.6x 13.9x 14.3x

Interactive Entertainment

Activision 9,615 9,634 34.4% 5.9% 3.5x 3.4x 10.2x 9.8x 17.6x 16.2x

Electronic Arts 6,813 5,761 25.7% (2.3%) 2.3x 2.3x 9.0x 9.4x 17.5x 17.9x

Zynga 1,559 1,102 13.2% (17.9%) 2.6x 2.0x 19.5x 12.1x NM NM

Take-Two Interactive Software 1,298 995 22.3% 78.8% 0.7x 0.7x 3.1x 3.1x 9.7x 17.7x

Ubisoft Entertainment 1,192 1,211 35.5% 41.5% 1.0x 1.0x 2.9x 2.4x 23.3x 11.6x

Mean 26.2% 21.2% 2.0x 1.9x 8.9x 7.4x 17.0x 15.9x

Median 25.7% 5.9% 2.3x 2.0x 9.0x 9.4x 17.6x 17.0x



(Continued)

10


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