hw&co. industry reader template · public market trading ... technology, media & telecom...
TRANSCRIPT
www.harriswilliams.com
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
EUROPEAN TECHNOLOGY
0
INDUSTRY UPDATE │ OCTOBER 2016
PAGE |
www.harriswilliams.com
HARRIS WILLIAMS & CO. OVERVIEW
1
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
CONTENTS
CASE STUDY
INDUSTRY INSIGHT
RECENT TRANSACTIONS
PUBLIC MARKET TRADING
SOFTWARE
IT SERVICES
COMMUNICATIONS
INTERNET AND DIGITAL MEDIA
TMT GROUP OVERVIEW
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.
CONTACTS
EUROPE
Thierry MonjauzeManaging [email protected]+44 (0) 20 7518 8901
Jonathan [email protected]+44 (0) 20 7518 8909
UNITED STATES
Jeff BistrongManaging [email protected]+1 (617) 482-7501
Michael WilkinsManaging [email protected]+1 (415) 288-4260
Sam HendlerManaging [email protected]+1 (617) 654-2117
HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS
SELECT RECENT HW&CO. TMT TRANSACTIONS
Enterprise Software
Data and
Analytics
Infrastructure and
Security Software
IT and Tech-
enabled Services
Data Centre and
Managed Services
AdTech and
Marketing Solutions
Consumer Internet
Mobile
Digital Media and
Content
eCommerce
SOFTWARE / SAAS AND SERVICES INTERNET & DIGITAL MEDIA
INTRODUCTION
Harris Williams & Co. is pleased to present our European Technology Industry
Update for October 2016. This report provides commentary and analysis on current
trading market trends, and merger and acquisition dynamics within the technology
industry.
We hope you find this edition helpful and we would encourage you to reach out to
either Thierry Monjauze or Jonathan Organ if you would like to discuss our
perspective on current industry trends and M&A opportunities or our relevant
industry experience.
Harris Williams & Co. is a leading advisor to the TMT industry. Our global practice has
significant experience that covers a broad range of sub-sectors and verticals.
a portfolio company of
has been acquired by
has acquired
a portfolio company of
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
Baarsma B2C trades as:
a portfolio company of
has been
recapitalized by
a portfolio company of
has been acquired by
has been acquired by
a portfolio company of
has been acquired by
A majority stake in
has been acquired by
a portfolio company of
has been recapitalised
by
PAGE |
www.harriswilliams.com
136,517150,498
166,353184,450
205,289229,579
2015 2016 2017 2018 2019 2020
1.7 1.9
2.0 2.2
2.4 2.7
2014 2015 2016 2017 2018 2019
CAD/CAM SOFTWARE CASE STUDY: EXOCAD
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
HW&Co. advised the shareholders of exocad on its sale of a majority stake to The Carlyle Group
The dentistry industry is currently undergoing a shift to
digitalisation with developments in CAD/CAM software
being a key driver
The global CAD/CAM market has increased at a 2014
to 2019 CAGR of 8.5%, driven by an underpenetrated
dental implant market and improvements in efficiency,
accuracy and predictability of software
The global dental implants market is projected to
increase at 2016 to 2020 CAGR of 7.2%, driven by
increasing periodontal conditions and tooth loss, and
an overall aging population
Taking advantage of all these factors, the penetration
and usage of CAD/CAM systems is expected to grow
from 24% in 2015 to 35% in 2020
Global Dental CAD/CAM Market Outlook
Source: Markets and Markets
2
Addressable Market – Global No. Licenses Installed
exocad’s position within the dental CAD/CAM software market in combination with Carlyle’s global network, especially in the US and Asia, is a unique opportunity to further develop exocad into a global leader
exocad benefits from a broad OEM and system integrator partner base with high levels of retention, driving equipment and material sales
The Company exhibits a strong track record of continued state-of-the-art software innovation based on latest technologies, providing significant barriers to entry
With over 86% cash conversion, exocad has developed an efficient and highly scalable business model yielding significant growth opportunities
The creation of new and complementary products creates an ever-expanding market place
DENTAL CAD/CAM INDUSTRY INSIGHT
ABOUT EXOCAD
– exocad provides market-leading CAD/CAM software to the
dental market, and is the only established provider of
hardware neutral CAD/CAM dental software globally
– Complete suite of software solutions include modularity,
best-in-class functionality and easy customisation making
exocad the dental software provider of choice
A majority stake in
has been acquired by
PatientsDentists
Dental
technicians
$bn
System
integrators
CAGR ’15-’20: 11.0%%
PAGE |
Close EV EV
Country Acquirer Country Date Target Description EV (m) LTM Rev. LTM EBITDA
IPO 23-Sep-16 Provider of digital payment serv ices DKK 27,981.5 4.0x 11.7x
03-Oct-16 Provider of intellectual property and scientific information, support tools and serv ices to facilitate innovation $3,550.0 3.5x 11.3x
14-Oct-16 Operators of online auction portals $3,253.0 N/A N/A
15-Sep-16 Provider of B2B communication and information serv ices $1,560.0 N/A 11.1x
03-Oct-16 Provider of connected terminals and software for the communications, entertainment and utility sectors €375.0 0.3x 3.5x
04-Oct-16 Provider of a performance marketing exchange for consumer brand manufacturers $250.0 2.2x N/A
R ecruitment
so ftware 12-Sep-16 Provider of staffing and recruiting software £19.4 1.2x 9.1x
02-Sep-16 Developer of v ideo games £16.5 1.6x 4.9x
11-Sep-16 Provider of CAD/CAM software for the dental industry N/A N/A N/A
18-Sep-16 Provider of a Cloud Access Security Broker platform N/A N/A N/A
04-Oct-16 Provider of omnichannel campaign management and email marketing solutions N/A N/A N/A
20-Sep-16 Provider of cloud-based distribution workflow solutions for the advertising industry N/A N/A N/A
19-Sep-16 Provider of human resource management software solutions N/A N/A N/A
04-Oct-16 Provider of co-location, managed hosting and data storage serv ices N/A N/A N/A
05-Oct-16 Provider of a search and content optimisation platform N/A N/A N/A
Target
IP & Science
HW&Co. Confidential
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
15 Sep 22 Sep 29 Sep 06 Oct 13 Oct
Internet and Digital Media Communications
IT Services Software
Nasdaq Composite DJ Stoxx 600 Technology
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
Oct 2015 Jan 2016 Apr 2016 Jul 2016
Internet and Digital Media Communications
IT Services Software
Nasdaq Composite DJ Stoxx 600 Technology
SELECT RECENT TMT DEALS
3
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
LAST TWELVE MONTHS
Stock Performance
LAST 30 DAYS
PUBLIC MARKET TRADING STATISTICS
23.2%
12.1%
9.0%
4.8%
3.5%
(6.8%)
0.4%
(0.6%)
(0.8%)
(2.1%)
(2.5%)
(4.9%)
(2)
(4)
(3)
1) Assets of
2) Based on FY15 Revenue
3) Based on FY15 EBITDA
(3)
(5)
4) Based on FY14 Revenue
5) Based on FY14 EBITDA
6) Deal Value
(6)
(1)
(6)
PAGE |
PUBLIC MARKET TRADING STATISTICS
4
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
COMPARABLE TRADING SUMMARY
Rev. Growth EBITDA Margin CY16E CY17E CY16E CY17E CY16E CY17E
Software
European Large Cap. Software 4.6% 34.2% 5.7x 5.3x 16.9x 15.2x 25.6x 22.9x
Application Software 5.4% 28.4% 4.6x 4.2x 16.9x 15.2x 22.1x 22.2x
Infrastructure Software 6.4% 28.0% 2.9x 2.7x 11.1x 10.1x 17.7x 17.4x
Large Cap. SaaS 27.4% 16.0% 7.2x 5.8x 28.0x 27.8x 24.6x 37.7x
Small Cap. SaaS 14.4% 6.5% 3.1x 2.7x 34.2x 29.2x NA 44.7x
HCM/WFM 22.4% 14.5% 6.2x 5.0x 23.9x 28.3x 25.6x 30.8x
FinTech 15.7% 29.0% 5.6x 5.0x 18.6x 16.3x 27.4x 24.8x
Healthcare IT 12.3% 16.8% 3.5x 3.1x 14.8x 13.3x 25.1x 22.0x
Data and Data Analytics 8.9% 22.1% 4.3x 3.9x 16.0x 12.9x 19.3x 17.6x
Security Software 10.5% 20.9% 4.4x 3.9x 15.4x 12.6x 21.1x 26.7x
CAx/PLM 0.8% 24.2% 5.5x 5.2x 19.1x 17.1x 30.0x 28.9x
IT Services
IT Services 7.1% 13.1% 1.1x 1.1x 8.6x 7.9x 16.3x 14.4x
Offshore IT Services 10.8% 23.2% 2.6x 2.3x 10.9x 9.8x 15.2x 14.0x
Managed Services, Colocation and Hosting 6.9% 27.9% 2.6x 2.4x 8.9x 8.1x 18.2x 19.4x
Data Centres 23.0% 52.7% 9.3x 8.3x 17.9x 15.6x 24.3x 32.3x
PaaS/IaaS 15.1% 24.8% 3.5x 3.1x 16.8x 13.4x 19.9x 24.1x
Communications
Digital Broadband 9.0% 5.8% 1.0x 1.0x 9.8x 9.4x 19.6x 16.8x
Diversified Communication Equipment (1.5%) 11.1% 1.1x 1.1x 10.2x 8.8x 17.4x 14.6x
Mobile Content/Solutions Providers 15.6% 14.5% 1.7x 1.5x 11.7x 9.4x NA 21.6x
Mobile Infrastructure Software (1.0%) 24.8% 2.9x 2.7x 14.5x 9.5x 17.7x 18.5x
Internet and Digital Media
Global Internet Leaders 17.2% 35.8% 6.6x 5.6x 19.8x 16.4x 25.3x 20.4x
Chinese Internet Leaders 32.2% 17.6% 6.0x 4.5x 21.7x 20.1x 28.8x 26.3x
Online Classifieds 10.4% 28.1% 5.2x 4.9x 15.0x 14.7x 26.3x 23.7x
Content Providers/Communities 10.9% 14.9% 3.9x 3.3x 22.1x 17.5x 33.3x 29.8x
Ecommerce 17.3% 17.3% 4.3x 3.6x 20.6x 17.8x 21.8x 30.1x
Interactive Entertainment 15.5% 26.7% 3.3x 3.0x 14.7x 10.9x 25.3x 23.9x
Intermediation and Comparison 9.5% 18.8% 2.7x 2.4x 14.5x 12.6x 16.1x 15.4x
Online Gambling 42.7% 33.0% 4.2x 3.6x 13.5x 11.2x 21.3x 17.2x
Digital Marketing 6.3% 14.4% 2.0x 1.7x 20.7x 14.0x 18.7x 19.6x
Online Travel 17.3% 17.2% 4.1x 3.5x 12.8x 14.9x 22.8x 22.6x
Educational Technology 0.2% 5.0% 2.3x 2.3x 13.5x 8.7x 36.2x 26.8x
Internet Services 23.3% 10.4% 4.5x 3.7x 24.1x 14.8x 14.4x 11.9x
P / EEV / Revenue EV / EBITDACY16E
PAGE |
(5%)
0%
5%
10%
15%
16 Sep 23 Sep 30 Sep 07 Oct
Application Software CAx/PLM Data and Data Analytics European Large Cap. Software
Fintech HCM/WFM Healthcare IT Infrastructure Software
Large Cap. SaaS Security Software Small Cap. SaaS
SOFTWARE
5
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
Oct 2015 Jan 2016 Apr 2016 Jul 2016
Application Software CAx/PLM Data and Data Analytics European Large Cap. Software
Fintech HCM/WFM Healthcare IT Infrastructure Software
Large Cap. SaaS Security Software Small Cap. SaaS
Infrastructure Software 2.1%
Fintech (0.7%)
Healthcare IT (0.9%)
European Large Cap. Software (1.0%)
Application Software (1.1%)
CAx/PLM (1.2%)
Large Cap. SaaS (1.3%)
HCM/WFM (1.7%)
Data and Data Analytics (2.5%)
Security Software (2.6%)
Small Cap. SaaS (3.6%)
CAx/PLM 16.6%
European Large Cap. Software 15.6%
Small Cap. SaaS 15.4%
Application Software 15.1%
Fintech 14.6%
HCM/WFM 13.4%
Infrastructure Software 10.0%
Data and Data Analytics 6.0%
Large Cap. SaaS (0.3%)
Healthcare IT (4.9%)
Security Software (6.6%)
PAGE |
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
European Large Cap. Software
SAP 109,216 106,737 93.7% 17.2% 19.5% 7.2% 33.2% 4.5x 4.2x 13.6x 12.7x 20.5x 18.5x
Dassault Systemes 19,694 21,487 93.5% 105.3% 49.1% 8.6% 32.9% 5.9x 5.4x 17.9x 15.9x 31.0x 27.9x
Sage 10,023 9,615 89.6% 109.3% 74.2% (9.4%) 28.8% 5.1x 4.7x 17.8x 15.9x 25.8x 22.7x
Micro Focus 5,878 4,824 87.7% 100.1% 82.9% 21.1% 45.5% 4.4x 4.2x 9.6x 8.4x 13.0x 12.0x
Temenos 5,263 4,794 98.8% 155.9% 200.8% 13.6% 37.9% 8.5x 7.8x 22.6x 20.1x 34.1x 29.6x
Aveva 1,422 1,575 69.4% 77.3% (39.5%) (13.2%) 27.1% 5.5x 5.2x 20.3x 18.3x 29.3x 27.0x
Mean 25,249 24,839 88.8% 94.2% 64.5% 4.6% 34.2% 5.7x 5.3x 16.9x 15.2x 25.6x 22.9x
Median 7,950 7,219 91.6% 102.7% 61.6% 7.9% 33.0% 5.3x 4.9x 17.8x 15.9x 27.5x 24.9x
Application Software
Microsoft 351,910 404,657 90.6% 110.9% 47.8% 0.6% 37.5% 3.8x 3.6x 10.1x 9.4x 18.1x 16.8x
Oracle 164,435 168,743 97.5% 104.2% 25.8% (0.1%) 44.8% 4.4x 4.3x 9.8x 9.4x 15.6x 14.7x
SAP 109,216 106,737 93.7% 117.2% 19.5% 7.2% 33.2% 4.5x 4.2x 13.6x 12.7x 20.5x 18.5x
Intuit 28,328 27,648 91.6% 116.0% 60.5% 10.3% 37.9% 5.8x 5.4x 15.4x 13.9x 26.6x 23.3x
Sage 10,023 9,615 89.6% 109.3% 74.2% (9.4%) 28.8% 5.1x 4.7x 17.8x 15.9x 25.8x 22.7x
Constellation Software 9,468 9,356 94.2% 106.0% 149.5% 14.9% 25.4% 4.5x 3.9x 17.6x 15.4x 24.4x 20.2x
Tyler Technologies 6,562 6,175 92.3% 99.7% 90.5% 29.3% 28.3% 8.6x 7.6x 30.4x 25.7x NM 43.0x
Guidewire Software 3,685 4,274 90.3% 106.7% 27.5% 12.4% 20.8% 8.2x 7.3x 39.6x 35.5x NM NM
Cegid 612 554 99.2% 146.7% 189.2% 10.5% 27.8% 1.8x 1.7x 6.5x 6.0x 17.4x 15.4x
SDL 418 433 75.8% 87.5% 28.4% (22.0%) 12.0% 1.4x 1.3x 11.4x 9.9x 18.5x 16.3x
American Software 248 318 91.6% 107.2% 23.4% 5.8% 15.4% 2.1x 2.1x 13.8x 13.0x 32.4x 31.4x
Mean 62,264 67,137 91.5% 110.1% 66.9% 5.4% 28.4% 4.6x 4.2x 16.9x 15.2x 22.1x 22.2x
Median 9,468 9,356 91.6% 107.2% 47.8% 7.2% 28.3% 4.5x 4.2x 13.8x 13.0x 20.5x 19.4x
Infrastructure Software
Hewlett-Packard Enterpise 39,933 30,692 93.0% NA NA (2.9%) 15.9% 0.8x 0.8x 5.0x 4.9x 9.5x 8.9x
VMware 24,124 31,071 95.2% 107.0% (6.0%) 5.3% 35.9% 3.4x 3.3x 9.6x 9.3x 17.1x 16.0x
Red Hat 13,568 13,874 91.5% 99.5% 81.4% 18.2% 26.7% 5.7x 5.0x 21.4x 18.6x 35.2x 30.1x
Citrix Systems 13,103 13,056 93.1% 111.9% 46.6% 3.4% 35.0% 3.9x 3.7x 11.0x 10.6x 16.6x 15.4x
CA Technologies 12,658 13,469 91.9% 111.3% 9.1% (0.5%) 37.2% 3.1x 3.1x 8.4x 8.2x 12.8x 12.4x
F5 Networks 7,028 7,718 91.7% 100.0% 33.2% 4.7% 38.6% 3.5x 3.2x 9.0x 8.3x 15.9x 14.3x
Brocade 4,253 3,518 80.3% 85.1% 7.5% 4.4% 26.0% 1.8x 1.6x 6.9x 6.5x 9.2x 8.7x
Software AG 2,763 2,938 84.8% 135.0% 7.4% 2.8% 32.4% 2.8x 2.8x 8.8x 8.4x 14.3x 13.7x
Netscout Systems 2,634 2,615 70.6% 73.1% 14.5% 33.0% 29.0% 2.2x 2.1x 7.7x 6.8x 14.7x 13.2x
Pegasystems 2,175 2,234 96.9% 112.1% 57.1% 15.8% 15.7% 2.8x 2.4x 17.6x 14.9x 31.9x 26.7x
Progress Software 1,237 1,319 91.0% 113.6% 5.6% 0.3% 34.9% 3.0x 2.9x 8.6x 8.8x 17.0x NA
Radware 322 542 74.3% 84.4% (11.8%) (8.0%) 8.6% 1.6x 1.5x 18.9x 16.3x NM 31.7x
Mean 10,317 10,254 87.9% 103.0% 22.2% 6.4% 28.0% 2.9x 2.7x 11.1x 10.1x 17.7x 17.4x
Median 5,640 5,618 91.6% 107.0% 9.1% 3.9% 30.7% 2.9x 2.8x 8.9x 8.6x 15.9x 14.3x
Large Cap. SaaS
Salesforce 53,639 51,020 88.9% 96.7% 48.1% 24.7% 20.5% 6.6x 5.4x 31.9x 25.7x NM NM
Workday 15,728 17,154 93.9% 113.4% 9.3% 34.8% 8.1% 10.3x 7.9x NM NM NM NM
NetSuite 7,263 7,366 91.2% 93.1% (4.4%) 30.3% 8.5% 7.5x 6.0x NM NM NM NM
The Ultimate Software Group 6,033 5,925 91.4% 107.1% 48.6% 26.2% 24.2% 7.7x 6.3x 31.9x 25.2x NM 49.9x
Veeva Systems 5,117 5,187 89.4% 149.2% NA 28.9% 28.2% 9.9x 8.1x 35.1x 27.7x NM NM
Athenahealth 5,015 4,863 72.5% 87.4% 15.3% 19.3% 21.4% 4.5x 3.8x 21.3x 17.5x NM NM
Guidewire Software 3,685 4,274 90.3% 106.7% 27.5% 12.4% 20.8% 8.2x 7.3x 39.6x 35.5x NM NM
Medidata Solutions 2,784 2,889 87.9% 126.2% 8.6% 17.8% 22.8% 6.0x 5.0x 26.4x 20.9x NM 40.5x
Cornerstone OnDemand 2,181 2,232 83.9% 110.5% (19.0%) 25.6% 6.3% 5.1x 4.2x NM 44.1x NM NM
Paylocity 2,177 2,269 89.5% 135.8% NA 38.0% 4.2% 8.2x 6.5x NM 49.9x NM NM
LogMeIn 2,136 2,270 93.6% 131.4% 194.7% 22.9% 26.0% 6.4x 5.6x 24.6x 20.2x NM 39.7x
Xero 1,604 1,745 83.5% 117.1% (26.4%) 54.7% (16.6%) 8.1x 5.8x NM NM NM NM
Fleetmatics 1,539 1,682 68.3% 89.3% 14.7% 20.7% 33.5% 4.5x 3.8x 13.4x 10.9x 24.6x 20.5x
Mean 8,377 8,375 86.5% 112.6% 28.8% 27.4% 16.0% 7.2x 5.8x 28.0x 27.8x 24.6x 37.7x
Median 3,685 4,274 89.4% 110.5% 14.7% 25.6% 20.8% 7.5x 5.8x 29.2x 25.4x 24.6x 40.1x
SOFTWARE
6
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
(1)
(4)
(1) Micro Focus has agreed to merge with Hewlett Packard Enterprise’s Software Business Segment; share price as at 7th July 2016
(2) Microsoft has agreed to acquire LinkedIn; share price as at 10th June 2016
(3) Oracle has agreed to acquire Netsuite; share price as at 27th July 2016
(4) A consortium led by Silver Lake Partners and AltaOne Capital launched a tender offer to acquire Cegid Group; share price as at 15th April 2016
(5) Verizon Communications has agreed to acquire Fleetmatics; share price as at 29th July 2016
(2)
(3)
(3)
(1)
(5)
PAGE |
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
Small Cap. SaaS
Benefitfocus 1,185 1,187 89.1% 123.9% (15.8%) 27.1% (2.7%) 5.0x 4.0x NM NM NM NM
SPS Commerce 1,067 1,186 90.4% 91.4% (3.5%) 21.9% 13.6% 5.5x 4.6x 40.7x 31.5x NM NM
Callidus 951 1,139 84.6% 103.8% 77.8% 18.2% 11.3% 4.6x 3.9x 41.2x 28.5x NM 49.9x
Cvent 719 896 57.2% 77.9% NA 24.2% 14.9% 3.1x 2.5x 20.7x 19.1x NM NM
Channel Advisors 246 310 75.9% 127.4% (67.1%) 12.4% 2.1% 2.2x 1.9x NM 48.8x NM NM
JIVE 209 317 78.3% 84.1% (66.6%) 2.7% 5.4% 1.0x 1.1x 19.1x 14.6x NM 39.5x
Marin Software 53 87 54.5% 60.4% (80.2%) (6.0%) 1.1% 0.5x 0.5x 49.2x 32.7x NM NM
Mean 633 732 75.7% 95.6% (34.0%) 14.4% 6.5% 3.1x 2.7x 34.2x 29.2x NA 44.7x
Median 719 896 78.3% 91.4% (66.9%) 18.2% 5.4% 3.1x 2.5x 40.7x 30.0x NA 44.7x
HCM/WFM
Workday 15,728 17,154 93.9% 113.4% 9.3% 34.8% 8.1% 10.3x 7.9x NM NM NM NM
The Ultimate Software Group 6,033 5,925 91.4% 107.1% 48.6% 26.2% 24.2% 7.7x 6.3x 31.9x 25.2x NM 49.9x
Cornerstone OnDemand 2,181 2,232 83.9% 110.5% (19.0%) 25.6% 6.3% 5.1x 4.2x NM 44.1x NM NM
Paylocity 2,177 2,269 89.5% 135.8% NA 38.0% 12.4% 8.2x 6.5x NM 49.9x NM NM
Benefitfocus 1,185 1,187 89.1% 123.9% (15.8%) 27.1% (2.7%) 5.0x 4.0x NM NM NM NM
ATOSS Software 226 239 70.7% 109.1% 78.4% 13.8% 27.0% 4.1x 3.6x 15.1x 13.5x 25.2x 22.5x
Halogen 127 159 92.8% 106.2% (45.5%) 10.9% 6.2% 1.7x 1.5x 28.3x 21.1x NM NM
Invision Software 100 102 78.1% 90.1% 51.8% 3.1% 34.9% 7.0x 6.0x 20.1x 16.0x 26.0x 20.0x
Mean 3,470 3,658 86.2% 112.0% 15.4% 22.4% 14.5% 6.2x 5.0x 23.9x 28.3x 25.6x 30.8x
Median 1,681 1,709 89.3% 109.8% 9.3% 25.9% 10.2% 6.1x 5.1x 24.2x 23.1x 25.6x 22.5x
Healthcare IT
McKesson 42,047 36,636 80.3% 83.8% 17.7% 7.2% 2.6% 0.2x 0.2x 7.9x 7.7x 12.3x 11.4x
Cerner 20,902 20,556 89.1% 94.4% 10.3% 11.2% 33.2% 4.2x 3.9x 12.8x 11.2x 25.8x 22.6x
Sysmex 14,556 14,968 94.0% 131.3% 121.2% 23.5% 27.7% 5.8x 5.4x 20.9x 19.4x 39.1x 36.0x
Allscripts Healthcare Solutions 3,918 2,430 82.5% 99.8% (9.1%) 13.7% 18.2% 2.5x 2.3x 13.7x 11.7x 22.0x 18.6x
CompuGroup 2,559 2,345 94.3% 142.6% 85.5% 5.5% 22.4% 4.1x 3.6x 18.3x 16.4x 25.0x 20.5x
EMIS 718 716 62.9% 70.0% 6.4% (13.7%) 31.8% 3.6x 3.4x 11.4x 10.7x 19.1x 18.0x
Sectra 611 622 92.7% 132.7% 86.0% 2.0% 20.1% 4.9x 4.5x 24.4x 21.5x NM 38.7x
Cegedim 610 370 66.5% 68.1% 4.1% (12.5%) 15.3% 1.3x 1.2x 8.2x 7.3x 35.9x 12.4x
Computer Programs & Systems 499 352 44.0% 59.2% (55.5%) 50.9% 20.6% 1.8x 1.7x 8.8x 7.7x 12.6x 10.8x
Craneware 372 417 88.2% 142.6% 110.8% 13.9% 31.5% 6.9x 6.1x 21.9x 19.5x 34.6x 31.1x
Castlight Health 289 427 77.1% 89.6% NA 33.3% (38.3%) 2.9x 2.3x NM NM NM NM
Mean 7,917 7,258 79.2% 101.3% 37.7% 12.3% 16.8% 3.5x 3.1x 14.8x 13.3x 25.1x 22.0x
Median 718 716 82.5% 94.4% 14.0% 11.2% 20.6% 3.6x 3.4x 13.2x 11.4x 25.0x 19.5x
Security Software
Palo Alto Networks 12,387 13,727 77.6% 88.5% 244.0% 41.0% 21.8% 7.9x 6.0x 36.1x 24.5x NM 46.9x
Symantec 12,028 15,000 93.7% 116.8% (3.4%) (8.0%) 34.3% 3.0x 2.7x 8.8x 7.1x 21.9x 15.3x
Check Point 11,999 13,073 84.7% 95.6% 31.9% 5.8% 54.3% 7.0x 6.6x 12.8x 12.0x 17.1x 15.8x
Verisign 9,878 8,110 80.8% 101.7% 47.1% 7.6% 69.0% 8.7x 8.4x 12.6x 12.2x 21.7x 20.1x
Gemalto 5,872 5,551 82.4% 89.4% (45.9%) 3.8% 19.0% 1.7x 1.6x 8.8x 7.7x 14.3x 12.3x
Fortinet 4,288 5,289 68.7% 70.9% 52.4% 25.0% 16.7% 3.4x 2.9x 20.3x 15.8x NM 37.4x
Trend Micro 3,374 4,673 74.6% 89.7% (12.0%) 23.1% 29.0% 2.7x 2.5x 9.1x 8.1x 26.2x 22.4x
Proofpoint 2,873 2,957 87.3% 119.0% 138.0% 36.8% 6.9% 7.9x 6.1x NM NM NM NM
FireEye 1,883 2,174 40.4% 42.8% (68.6%) 16.2% (13.9%) 2.6x 2.3x NM NM NM NM
AVG Technologies 1,397 954 64.5% 69.0% (6.1%) 2.7% 37.3% 3.2x 3.0x 8.5x 7.8x 9.8x 8.8x
Imperva 1,331 1,609 63.3% 79.6% 18.3% 6.6% (7.2%) 5.3x 4.4x NM NM NM NM
Qualys 1,218 1,328 94.5% 111.4% 77.1% 20.6% 32.5% 6.1x 5.2x 18.9x 15.7x NM 40.7x
Barracuda Networks 1,194 1,344 96.3% 134.1% NA 10.2% 22.7% 3.5x 3.2x 15.3x 14.6x NM 35.8x
Vasco Data Security 577 720 83.9% 99.2% 129.7% (12.7%) 17.8% 2.7x 2.4x 15.4x 10.9x NM 35.8x
F-Secure 474 573 88.5% 122.9% 51.0% 8.5% 15.4% 2.7x 2.6x 17.7x 14.5x 37.0x 29.7x
Intercede 29 37 32.2% 37.1% (63.7%) (18.6%) (20.5%) 2.3x 2.0x NM NM NM NM
Mean 4,425 4,820 75.8% 91.7% 39.3% 10.5% 20.9% 4.4x 3.9x 15.4x 12.6x 21.1x 26.7x
Median 2,378 2,565 81.6% 92.7% 31.9% 8.0% 20.4% 3.3x 2.9x 14.1x 12.1x 21.7x 26.0x
SOFTWARE
7
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
(1)
(2)
(1) Vista Equity Partners has agreed to acquire Cvent; share price as at 16th April 2016
(2) AVAST Software has agreed to acquire AVG Technologies; share price as at 6th July 2016
PAGE |
SOFTWARE
8
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
Fintech
Fidelity Information Services 35,736 25,167 94.1% 110.0% 68.4% 42.5% 30.6% 3.8x 3.6x 12.3x 11.4x 20.1x 17.5x
Intuit 28,328 27,648 91.6% 116.0% 60.5% 10.3% 37.9% 5.8x 5.4x 15.4x 13.9x 26.6x 23.3x
Fiserv 26,898 22,030 89.9% 110.1% 96.6% 5.9% 34.2% 4.8x 4.6x 14.1x 12.9x 22.6x 20.1x
Paychex 20,071 20,372 91.1% 113.0% 38.4% 7.9% 42.8% 6.5x 6.1x 15.2x 14.2x 26.2x 24.2x
MSCI 9,198 7,832 91.2% 138.4% 109.4% 7.1% 48.6% 8.0x 7.4x 16.5x 14.9x 28.4x 23.9x
SS&C Technologies 9,046 6,422 82.7% 89.1% 73.3% 43.7% 39.7% 6.0x 5.5x 15.0x 13.1x 19.8x 16.5x
Jack Henry 6,529 6,461 92.1% 112.8% 56.7% 6.4% 35.1% 4.7x 4.5x 13.4x 12.6x 26.8x 25.8x
Temenos 5,263 4,794 98.8% 155.9% 200.8% 13.6% 37.9% 8.5x 7.8x 22.6x 20.1x 34.1x 29.6x
Fair Isaac 4,394 3,734 91.0% 134.5% 122.1% 4.2% 29.8% 5.0x 4.7x 16.7x 14.7x 36.6x 30.5x
Guidewire 3,685 4,274 90.3% 106.7% 27.5% 12.4% 20.8% 8.2x 7.3x 39.6x 35.5x NM NM
Ellie Mae 3,030 3,336 94.5% 146.5% 213.2% 34.7% 29.9% 8.9x 7.1x 29.6x 21.3x NM 38.7x
Paycom 2,881 2,985 94.4% 123.7% NA 45.4% 25.8% 8.8x 6.8x 34.1x 26.8x NM NM
SimCorp 2,231 2,303 93.4% 111.7% 66.6% 6.7% 24.3% 6.9x 6.5x 28.5x 26.6x 39.3x 36.1x
Ebix 2,026 1,836 95.5% 213.5% 397.0% 10.0% 38.0% 6.9x 6.3x 18.3x 16.8x 20.9x 20.1x
Envestnet 1,766 1,515 85.3% 116.0% 2.3% 37.8% 17.3% 3.0x 2.6x 17.6x 13.0x 35.6x 24.6x
Iress 1,568 1,525 94.1% 132.9% 4.5% 12.5% 30.4% 5.3x 4.7x 17.4x 15.4x 26.2x 22.7x
Fidessa 1,047 1,133 80.4% 102.3% (6.2%) (10.0%) 26.1% 2.7x 2.5x 10.3x 9.7x 28.1x 26.3x
Q2 Holdings 1,012 1,119 91.6% 109.2% NA 36.7% (3.2%) 6.8x 5.3x NM NM NM NM
Bottomline Technologies 881 907 70.3% 86.2% (23.6%) 3.6% 20.6% 2.5x 2.4x 12.2x 11.9x 24.0x 23.7x
Linedata 369 360 93.7% 159.9% 87.0% 1.9% 29.0% 1.9x 1.9x 6.7x 6.5x 13.5x 12.9x
StatPro 103 88 89.9% 114.5% (11.2%) (3.6%) 14.0% 2.4x 2.3x 17.1x 15.2x 37.3x 29.9x
Mean 7,908 6,945 90.3% 123.9% 83.3% 15.7% 29.0% 5.6x 5.0x 18.6x 16.3x 27.4x 24.8x
Median 3,030 3,336 91.6% 114.5% 66.6% 10.0% 29.9% 5.8x 5.3x 16.6x 14.4x 26.6x 24.1x
Data and Data Analytics
Nielsen 27,327 19,157 95.9% 112.4% 45.5% 3.2% 30.9% 4.3x 4.1x 13.9x 12.9x 18.7x 17.0x
Experian 21,678 18,587 92.8% 114.9% 2.9% 1.7% 34.3% 4.6x 4.4x 13.5x 12.8x 20.9x 19.5x
Equifax 18,709 15,574 95.4% 123.4% 117.2% 18.1% 35.1% 5.9x 5.4x 16.9x 15.1x 24.3x 21.9x
Verisk 15,707 13,452 92.6% 100.2% 18.9% (3.6%) 50.2% 7.9x 7.4x 15.7x 14.6x 26.6x 24.0x
Splunk 6,460 7,567 84.0% 100.0% (2.2%) 37.5% 8.9% 7.2x 5.6x NM NM NM NM
Convergys 3,174 2,853 96.2% 118.3% 58.1% 1.3% 13.0% 1.1x 1.0x 8.2x 7.6x 15.5x 14.3x
Tableau Software 2,772 3,632 46.0% 58.2% (25.5%) 27.8% 7.5% 3.3x 2.7x 44.5x 26.8x NM NM
Neustar 2,340 1,402 85.5% 93.6% (45.2%) 17.0% 45.1% 1.9x 1.8x 4.2x 3.9x 4.9x 4.6x
Microstrategy 1,434 1,969 84.1% 86.2% 79.0% (3.8%) 25.5% 2.8x 2.7x 11.0x 9.7x 24.0x 22.2x
PROS 640 638 82.8% 87.3% (32.9%) (10.5%) (29.7%) 4.3x 4.0x NM NM NM NM
Mean 10,024 8,483 85.5% 99.4% 21.6% 8.9% 22.1% 4.3x 3.9x 16.0x 12.9x 19.3x 17.6x
Median 4,817 5,599 89.0% 100.1% 10.9% 2.5% 28.2% 4.3x 4.0x 13.7x 12.9x 20.9x 19.5x
CAx/PLM
Dassault Systems 19,694 21,487 93.5% 105.3% 49.1% 8.6% 32.9% 5.9x 5.4x 17.9x 15.9x 31.0x 27.9x
Autodesk 14,961 15,444 94.9% 133.5% 70.3% (17.4%) 0.3% 7.2x 6.7x NM NM NM NM
Ansys 7,303 7,953 92.2% 100.4% 8.1% 5.8% 50.9% 7.3x 6.8x 14.4x 13.4x 25.2x 23.3x
PTC 5,720 5,214 96.7% 131.1% 66.2% (6.5%) 21.5% 5.0x 4.9x 23.1x 22.9x 35.3x 36.7x
Nemetschek 2,417 2,430 95.1% 148.6% 320.1% 20.6% 26.7% 6.5x 5.6x 24.2x 20.8x NM 38.2x
Aveva 1,422 1,575 69.4% 77.3% (39.5%) (13.2%) 27.1% 5.5x 5.2x 20.3x 18.3x 29.3x 27.0x
Mensch und Maschine 273 247 86.5% 169.5% 129.8% 7.7% 9.9% 1.5x 1.3x 14.6x 11.5x 29.2x 19.9x
Mean 7,399 7,764 89.7% 123.7% 86.3% 0.8% 24.2% 5.5x 5.2x 19.1x 17.1x 30.0x 28.9x
Median 5,720 5,214 93.5% 131.1% 66.2% 5.8% 26.7% 5.9x 5.4x 19.1x 17.1x 29.3x 27.5x
PAGE |
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
15 Sep 22 Sep 29 Sep 06 Oct 13 Oct
Data Centres IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
60%
Oct 2015 Jan 2016 Apr 2016 Jul 2016
Data Centres IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS
IT SERVICES
9
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
Data Centres 33.3%
IT Services 20.5%
PaaS/IaaS 2.7%
Managed Services, Colocation and Hosting (5.0%)
Offshore IT Services (12.5%)
IT Services 1.0%
Data Centres 0.7%
PaaS/IaaS (0.3%)
Offshore IT Services (0.7%)
Managed Services, Colocation and Hosting (5.8%)
PAGE |
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
IT Services
KDDI 85,831 78,136 89.4% 132.6% 67.0% 21.2% 31.6% 1.9x 1.8x 6.0x 5.8x 14.2x 13.1x
Accenture 74,737 73,628 94.7% 115.6% 65.2% 6.5% 16.8% 2.2x 2.1x 13.2x 12.3x 21.3x 19.3x
Capgemini 18,631 15,312 88.3% 100.7% 47.0% 8.2% 13.1% 1.3x 1.3x 10.1x 9.4x 15.3x 14.0x
NTT Group 16,455 13,846 87.3% 99.7% 48.6% 20.9% 16.5% 1.0x 1.0x 6.2x 6.1x 22.7x 21.4x
CGI 15,734 14,260 92.7% 126.4% 26.8% 9.1% 18.6% 1.9x 1.9x 10.4x 10.0x 17.4x 16.1x
Fujitsu 13,948 11,180 96.0% 113.0% 39.0% 12.8% 6.5% 0.3x 0.3x 4.8x 4.3x 13.4x 10.9x
Atos Origin 10,861 10,953 95.0% 132.3% 32.2% 11.2% 12.0% 0.8x 0.8x 7.0x 6.5x 13.4x 12.2x
CSC 10,035 7,610 76.2% 200.7% 148.0% (8.9%) 16.1% 1.3x 1.3x 8.2x 7.6x 19.7x 16.9x
NEC 9,475 6,641 73.9% 76.7% 11.2% 14.9% 6.0% 0.3x 0.3x 5.8x 5.4x 10.4x 10.3x
Capita 7,687 4,804 36.1% 37.6% (53.5%) (16.3%) 14.8% 1.3x 1.3x 8.7x 8.4x 8.9x 8.5x
Sopra 2,934 2,141 76.6% 93.0% 18.2% 6.4% 9.0% 0.7x 0.7x 7.9x 7.0x 11.6x 9.8x
Indra Sistemas 2,790 2,095 91.1% 117.5% (18.8%) (3.1%) 8.4% 0.9x 0.9x 11.0x 8.9x 22.1x 14.9x
Tieto 2,206 2,095 88.4% 109.7% 33.5% 5.0% 13.6% 1.3x 1.3x 9.7x 9.1x 15.8x 15.0x
Bechtle 2,206 2,311 93.6% 120.9% 94.7% 10.6% 5.6% 0.6x 0.6x 11.6x 10.5x 20.1x 18.1x
GFI Informatique 648 576 86.7% 125.8% 59.3% 7.5% 8.0% 0.6x 0.6x 7.8x 7.4x 17.8x 15.1x
Mean 18,279 16,373 84.4% 113.5% 41.2% 7.1% 13.1% 1.1x 1.1x 8.6x 7.9x 16.3x 14.4x
Median 10,035 7,610 88.4% 115.6% 39.0% 8.2% 13.1% 1.0x 1.0x 8.2x 7.6x 15.8x 14.9x
Offshore IT Services
Tata 65,837 69,872 86.4% 93.1% (1.1%) 10.1% 27.7% 3.8x 3.4x 13.6x 12.5x 18.0x 15.6x
Infosys 30,501 35,370 80.8% 91.0% 13.8% 10.8% 27.2% 3.0x 2.7x 11.0x 9.9x 16.6x 15.2x
Cognizant 27,166 30,638 72.3% 77.8% 17.5% 9.1% 20.0% 2.0x 1.8x 10.0x 9.1x 15.0x 13.7x
HCL 15,923 17,186 89.8% 94.6% 29.9% 16.5% 20.7% 2.3x 2.1x 11.1x 9.6x 13.0x 13.1x
Wipro 14,614 17,287 77.6% 79.8% (13.8%) 7.6% 20.6% 1.8x 1.7x 8.7x 8.1x 13.3x 12.5x
Mean 30,808 34,071 81.4% 87.2% 9.3% 10.8% 23.2% 2.6x 2.3x 10.9x 9.8x 15.2x 14.0x
Median 27,166 30,638 80.8% 91.0% 13.8% 10.1% 20.7% 2.3x 2.1x 11.0x 9.6x 15.0x 13.7x
Managed Services, Colocation and Hosting
Level 3 26,251 16,599 80.2% 98.4% 69.1% 0.6% 34.4% 3.2x 3.1x 9.2x 8.7x 27.8x 22.4x
United Internet 11,339 8,528 73.6% 81.1% 5.7% 9.5% 21.3% 2.6x 2.4x 12.1x 10.9x 17.0x 15.1x
Windstream 10,565 814 80.9% 126.8% (35.8%) (5.7%) 34.7% 1.9x 2.0x 5.6x 5.7x NM NM
Rackspace 4,103 3,963 98.0% 101.8% (28.5%) 3.5% 34.7% 2.0x 1.9x 5.7x 5.5x 29.6x 29.0x
GoDaddy 3,625 3,014 98.5% 130.4% NA 14.8% 22.4% 2.0x 1.7x 8.8x 7.4x NM NM
Interxion 3,232 2,625 96.1% 134.3% 61.9% 10.4% 45.3% 7.0x 6.3x 15.4x 13.6x NM 49.6x
Endurance 3,013 1,117 51.2% 52.9% NA 49.0% 26.2% 2.7x 2.5x 10.3x 9.2x 9.3x 7.7x
Internap 448 91 20.6% 24.5% (75.9%) (5.6%) 27.4% 1.5x 1.5x 5.4x 5.2x NM NM
iomart 397 356 70.1% 75.3% (22.1%) (5.3%) 43.0% 3.9x 3.6x 9.0x 8.4x 16.2x 14.6x
Redcentric 336 288 63.9% 66.0% 43.1% (8.5%) 23.8% 2.4x 2.2x 9.9x 9.1x 14.8x 13.0x
Proact 165 152 94.8% 118.8% 33.2% (3.1%) 6.5% 0.5x 0.5x 7.9x 7.4x 12.2x 11.6x
Melbourne IT 152 148 92.0% 111.4% (3.1%) 22.8% 15.4% 1.1x 1.0x 7.4x 5.8x 18.9x 11.6x
Mean 5,302 3,141 76.6% 93.5% 4.8% 6.9% 27.9% 2.6x 2.4x 8.9x 8.1x 18.2x 19.4x
Median 3,122 965 80.5% 100.1% 1.3% 2.1% 26.8% 2.2x 2.1x 8.9x 7.9x 16.6x 14.6x
Data Centres
Equinix 32,089 25,853 92.9% 129.7% 121.6% 32.4% 46.1% 8.9x 7.8x 19.3x 16.6x NM NM
Digital Realty Trust 21,462 13,962 83.9% 133.4% 74.7% 19.5% 57.3% 10.2x 9.3x 17.8x 16.2x NM NM
DuPont Fabros 5,005 3,139 84.8% 146.0% 62.6% 14.9% 62.1% 9.6x 8.7x 15.5x 13.9x 24.3x 22.2x
QTS 3,841 2,498 88.0% 116.5% 140.2% 28.9% 45.7% 9.6x 8.2x 20.9x 17.7x NM NM
Coresite 3,306 2,645 84.8% 141.4% 133.3% 19.2% 52.4% 8.3x 7.2x 15.9x 13.6x NM 42.3x
Mean 13,141 9,619 86.9% 133.4% 106.5% 23.0% 52.7% 9.3x 8.3x 17.9x 15.6x 24.3x 32.3x
Median 5,005 3,139 84.8% 133.4% 121.6% 19.5% 52.4% 9.6x 8.2x 17.8x 16.2x 24.3x 32.3x
PaaS/IaaS
ServiceNow 12,152 12,522 83.4% 100.6% 53.1% 37.0% 18.3% 8.8x 6.8x 48.3x 31.4x NM NM
Akamai 9,386 9,531 71.4% 76.2% 6.3% 5.4% 40.1% 4.1x 3.7x 10.1x 9.1x 21.3x 19.1x
Netapp 6,521 9,344 92.9% 99.3% (17.6%) (4.8%) 18.6% 1.2x 1.2x 6.4x 6.1x 14.7x 13.0x
Commvault Systems 1,954 2,375 95.7% 149.5% (34.5%) 5.0% 13.0% 3.1x 2.9x 23.9x 20.2x NM 48.3x
Synchronoss 1,782 1,677 85.1% 101.8% 0.5% 17.4% 33.0% 2.6x 2.2x 7.9x 6.4x 14.8x 12.3x
Progress Software 1,237 1,319 91.0% 113.6% 5.6% 0.3% 34.9% 3.0x 2.9x 8.6x 8.8x 17.0x NA
Carbonite 389 433 98.3% 143.9% 4.8% 45.6% 15.5% 2.0x 1.9x 12.6x 11.9x 31.9x 27.8x
Mean 4,774 5,314 88.3% 112.1% 2.6% 15.1% 24.8% 3.5x 3.1x 16.8x 13.4x 19.9x 24.1x
Median 1,954 2,375 91.0% 101.8% 4.8% 5.4% 18.6% 3.0x 2.9x 10.1x 9.1x 17.0x 19.1x
IT SERVICES
10
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
(1)
(1) Apollo Global Management has agreed to acquire Rackspace Hosting; share price as at 26th August 2016
PAGE |
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
60%
70%
Oct 2015 Jan 2016 Apr 2016 Jul 2016
Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software
COMMUNICATIONS
11
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
Mobile Content / Solutions Providers 40.4%
Digital Broadband 10.3%
Mobile Infrastructure Software 10.1%
Diversified Communication Equipment (29.4%)
(12%)
(7%)
(2%)
3%
8%
13%
15 Sep 22 Sep 29 Sep 06 Oct 13 Oct
Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software
Mobile Content / Solutions Providers 10.0%
Mobile Infrastructure Software 3.9%
Digital Broadband (4.6%)
Diversified Communication Equipment (9.1%)
PAGE |
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
Digital Broadband
Technicolor 4,083 2,602 76.3% 88.8% 17.8% 42.0% 11.6% 0.7x 0.7x 6.3x 6.4x 14.5x 12.5x
Logitech 3,192 3,827 93.2% 156.2% 137.3% 2.8% 10.7% 1.5x 1.4x 14.3x 12.8x 20.7x 18.5x
TomTom 1,975 2,022 64.5% 82.5% 16.0% 2.8% 13.6% 1.8x 1.7x 12.9x 11.7x 34.2x 28.0x
Kudelski 1,259 988 80.9% 127.7% 38.2% 11.7% 13.2% 1.2x 1.1x 9.1x 8.9x 15.0x 14.3x
Extreme Networks 387 440 87.7% 116.0% (25.2%) 4.0% 10.6% 0.7x 0.7x 6.5x 7.2x 13.4x 10.7x
Parrot 49 305 27.8% 28.4% (54.1%) (9.6%) (24.6%) 0.2x 0.1x NM NM NM NM
Mean 1,824 1,697 71.7% 100.0% 21.7% 9.0% 5.8% 1.0x 1.0x 9.8x 9.4x 19.6x 16.8x
Median 1,617 1,505 78.6% 102.4% 16.9% 3.4% 11.1% 1.0x 0.9x 9.1x 8.9x 15.0x 14.3x
Diversified Communication Equipment
LM Ericsson Telephone 15,692 18,284 51.7% 52.3% (57.7%) (14.1%) 10.0% 0.6x 0.6x 6.2x 5.3x 14.9x 12.4x
Alcatel-Lucent 14,598 13,629 91.7% 101.9% 9.3% NA NA NA NA NA NA NA NA
CIENA 3,867 2,886 81.4% 90.0% (21.1%) 6.7% 13.9% 1.5x 1.4x 10.6x 9.4x 14.0x 11.7x
ADTRAN 799 881 84.8% 125.7% (26.0%) 2.8% 9.3% 1.3x 1.2x 13.9x 11.8x 23.2x 19.6x
Mean 8,739 8,920 77.4% 92.5% (23.9%) (1.5%) 11.1% 1.1x 1.1x 10.2x 8.8x 17.4x 14.6x
Median 9,233 8,257 83.1% 96.0% (23.5%) 2.8% 10.0% 1.3x 1.2x 10.6x 9.4x 14.9x 12.4x
Mobile Infrastructure Software
QUALCOMM 92,403 96,922 93.4% 111.0% (3.5%) (5.5%) 38.1% 4.0x 3.9x 10.4x 10.0x 14.9x 13.7x
VeriSign 9,878 8,110 80.8% 101.7% 47.1% 7.6% 69.0% 8.7x 8.4x 12.6x 12.2x 21.7x 20.1x
Amdocs 7,846 8,799 97.1% 102.1% 61.1% 2.8% 18.9% 2.1x 2.0x 11.0x 10.6x 16.4x 15.4x
Synchronoss Technologies 1,782 1,677 85.1% 101.8% 0.5% 17.4% 33.0% 2.6x 2.2x 7.9x 6.4x 14.8x 12.3x
Sonus Networks 278 367 74.2% 109.9% (55.6%) 5.3% 11.2% 1.1x 1.0x 9.5x 8.2x 20.5x 19.6x
Redknee Solutions 197 179 47.4% 48.9% (67.6%) (17.8%) 3.2% 1.1x 1.1x 35.4x 9.9x NM 29.9x
Smith Micro Software 16 24 55.0% 58.3% (41.0%) (16.8%) 0.0% 0.5x 0.3x NM NA NM NM
Mean 16,057 16,583 76.1% 90.5% (8.4%) (1.0%) 24.8% 2.9x 2.7x 14.5x 9.5x 17.7x 18.5x
Median 1,782 1,677 80.8% 101.8% (3.5%) 2.8% 18.9% 2.1x 2.0x 10.7x 9.9x 16.4x 17.5x
Mobile Content / Solutions Providers
Opera Software 1,196 1,041 79.4% 80.8% (7.5%) 15.6% 14.5% 1.7x 1.5x 11.7x 9.4x NM 21.6x
Mean 1,196 1,041 79.4% 80.8% (7.5%) 15.6% 14.5% 1.7x 1.5x 11.7x 9.4x NA 21.6x
Median 1,196 1,041 79.4% 80.8% (7.5%) 15.6% 14.5% 1.7x 1.5x 11.7x 9.4x NA 21.6x
COMMUNICATIONS
12
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
(1)
(1) Kunlun World Wide, Zhou Yahui, Qihoo and Golden Brick Capital Management have agreed to acquire Opera
Software; share price as at 17th July 2016
PAGE |
(60%)
(40%)
(20%)
0%
20%
40%
60%
80%
Oct 2015 Jan 2016 Apr 2016 Jul 2016 Oct 2016
Global Internet Leaders eCommerce Online Travel Digital Marketing
Content Providers / Communities Intermediation and Comparison Online Classifieds Interactive Entertainment
Online Gambling Chinese Internet Leaders Internet Services Educational Technology
INTERNET AND DIGITAL MEDIA
13
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
LAST 30 DAYS PERFORMANCE
LAST TWELVE MONTHS PERFORMANCE
(10%)
(5%)
0%
5%
10%
15%
15 Sep 22 Sep 29 Sep 06 Oct 13 Oct
Global Internet Leaders eCommerce Online Travel Digital Marketing
Content Providers / Communities Intermediation and Comparison Online Classifieds Interactive Entertainment
Online Gambling Chinese Internet Leaders Internet Services Educational Technology
eCommerce 1.9%
Interactive Entertainment 0.3%
Online Travel 0.2%
Global Internet Leaders (0.2%)
Content Providers / Communities (2.1%)
Educational Technology (2.4%)
Internet Services (2.6%)
Digital Marketing (3.3%)
Chinese Internet Leaders (4.7%)
Online Gambling (5.4%)
Intermediation and Comparison (6.6%)
Online Classifieds (7.1%)
Chinese Internet Leaders 44.9%
Ecommerce 34.9%
Global Internet Leaders 20.8%
Interactive Entertainment 20.6%
Online Gambling 17.6%
Online Travel 7.5%
Educational Technology 2.5%
Online Classifieds (0.3%)
Digital Marketing (9.4%)
Intermediation and Comparison (15.7%)
Content Providers / Communities (18.2%)
Internet Services (24.6%)
PAGE |
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
Global Internet Leaders
Apple 666,942 633,541 95.0% 105.1% 65.1% (4.8%) 32.8% 3.1x 2.9x 9.3x 8.9x 13.9x 12.8x
Google 487,053 544,356 98.3% 116.3% 82.5% 19.1% 49.8% 6.7x 5.8x 13.5x 11.6x 23.5x 19.8x
Microsoft 401,195 404,657 90.6% 109.5% 49.3% 0.6% 37.5% 4.3x 4.1x 11.5x 10.7x 18.1x 16.8x
Amazon 393,279 391,111 97.4% 146.7% 169.2% 27.9% 11.4% 2.9x 2.3x 25.3x 18.9x NM NM
Facebook 348,041 367,171 96.9% 133.2% 158.3% 51.1% 63.3% 12.8x 9.5x 20.3x 15.0x 32.5x 25.2x
Alibaba 266,360 255,142 93.1% 142.5% NA 41.0% 46.9% 12.9x 9.7x 27.5x 21.3x 33.1x 25.6x
Baidu 55,436 60,800 80.5% 116.8% 15.8% 5.5% 21.8% 5.1x 4.2x 23.5x 18.0x 37.4x 26.7x
eBay 37,449 35,846 95.7% 129.6% 39.8% 4.1% 38.8% 4.2x 4.0x 10.8x 10.1x 16.9x 15.2x
Yahoo! 32,267 37,408 99.0% 100.4% 43.9% (14.4%) 21.9% 9.2x 9.1x 42.1x 38.4x NM NM
Yandex 5,609 6,117 79.8% 140.1% (50.6%) 42.1% 33.7% 4.8x 4.0x 14.3x 10.9x 27.0x 20.6x
Mean 269,363 273,615 92.6% 124.0% 63.7% 17.2% 35.8% 6.6x 5.6x 19.8x 16.4x 25.3x 20.4x
Median 307,201 311,157 95.3% 123.2% 49.3% 12.3% 35.6% 5.0x 4.2x 17.3x 13.3x 25.2x 20.2x
Ecommerce
Amazon 393,279 391,111 97.4% 146.7% 169.2% 27.9% 11.4% 2.9x 2.3x 25.3x 18.9x NM NM
Alibaba 266,360 255,142 93.1% 142.5% NA 41.0% 46.9% 12.9x 9.7x 27.5x 21.3x 33.1x 25.6x
Naspers 72,312 70,944 89.3% 110.0% 68.9% 11.0% 8.8% 11.6x 10.8x NM NM NM 31.6x
Netflix 44,867 43,363 75.9% 100.1% 120.1% 28.9% 5.9% 5.1x 4.2x NM 47.7x NM NM
eBay 37,449 35,846 95.7% 129.6% 39.8% 4.1% 38.8% 4.2x 4.0x 10.8x 10.1x 16.9x 15.2x
JD.com 34,615 38,219 79.1% 100.8% NA 33.8% 0.7% 0.9x 0.7x NM NM NM NM
Zalando 9,409 10,230 96.0% 125.6% NA 26.9% 6.0% 2.3x 1.9x 38.3x 27.1x NM NM
Mercadolibre 7,286 7,384 86.5% 178.7% 26.1% 26.3% 24.2% 8.8x 6.9x 36.6x 29.2x NM 43.6x
IAC 5,397 4,897 84.4% 87.0% 12.9% (3.7%) 16.0% 1.7x 1.6x 10.8x 8.6x 23.8x 16.2x
JUST EAT 4,342 4,463 84.2% 102.1% NA 23.4% 30.1% 9.6x 7.6x 32.1x 22.2x NM 32.3x
Cimpress 3,971 3,019 91.8% 119.1% 73.3% 18.0% 14.9% 2.1x 1.8x 13.8x 12.5x NM 35.3x
Mail.ru 3,421 3,741 73.3% 88.3% (56.2%) 26.8% 45.9% 5.4x 4.8x 11.8x 10.3x 19.1x 15.6x
GrubHub 3,287 3,535 93.2% 136.1% NA 34.6% 28.9% 6.7x 5.5x 23.3x 18.1x NM 37.4x
Groupon 2,276 2,864 83.9% 135.1% (55.4%) (0.6%) 5.0% 0.7x 0.7x 14.8x 10.4x NM NM
Ocado 2,119 1,953 49.8% 59.4% (56.6%) (4.8%) 6.9% 1.3x 1.2x 19.6x 16.6x NM NM
Shutterstock 1,924 2,151 94.4% 186.6% (12.5%) 18.7% 19.4% 3.8x 3.3x 19.7x 15.9x NM 36.4x
Coupons.com 842 1,008 83.6% 148.9% NA 13.7% 9.9% 3.1x 2.7x 31.6x 19.5x NM 46.9x
Blue Nile 376 411 90.7% 108.7% (3.8%) (1.4%) 5.2% 0.8x 0.8x 15.3x 14.1x NM 37.4x
Overstock 292 374 82.3% 86.3% (49.8%) 6.4% 1.3% 0.2x 0.2x 13.1x 12.7x NM NM
RetailMeNot 289 467 74.1% 102.5% (71.9%) 15.9% 19.8% 1.0x 0.9x 5.1x 4.9x 16.1x 17.2x
Mean 44,706 44,056 84.9% 119.7% 14.6% 17.3% 17.3% 4.3x 3.6x 20.6x 17.8x 21.8x 30.1x
Median 4,156 4,102 85.4% 114.5% 4.6% 18.3% 13.1% 3.0x 2.5x 19.6x 16.2x 19.1x 32.3x
Online Travel
The Priceline Group 75,063 71,268 96.0% 108.7% 41.2% 15.6% 40.0% 7.0x 6.1x 17.6x 15.1x 21.2x 18.2x
Ctrip 24,090 21,592 81.5% 133.2% 64.7% 69.6% (7.9%) 8.4x 6.3x NM 44.7x NM 45.5x
Amadeus 23,046 20,768 93.2% 105.3% 35.8% 14.6% 37.5% 4.7x 4.4x 12.6x 11.8x 22.1x 20.7x
Expedia 20,321 18,009 85.5% 96.0% 151.0% 30.9% 18.6% 2.3x 2.0x 12.5x 10.1x 24.3x 18.4x
Sabre Corporation 10,580 7,258 85.8% 88.6% NA 14.6% 31.7% 3.1x 2.9x 9.8x 8.8x 18.3x 15.3x
Tripadvisor 8,271 8,943 70.2% 73.7% (16.8%) 2.2% 25.6% 5.4x 4.7x 21.2x 16.8x 39.3x 30.2x
Travelport 4,056 1,765 93.6% 100.6% NA 7.1% 24.0% 1.7x 1.6x 7.1x 6.6x 11.7x 10.1x
MakeMyTrip 894 900 89.5% 127.0% 52.2% 30.6% (35.0%) 4.3x 3.4x NM NM NM NM
Hostelworld Group 238 258 61.9% NA NA (6.0%) 29.2% 2.8x 2.7x 9.6x 9.2x 12.7x 12.4x
Travelzoo 141 165 90.1% 126.6% (53.8%) (5.9%) 8.7% 1.1x 1.0x 12.1x 11.4x 32.9x 32.6x
Mean 16,670 15,093 84.7% 106.6% 39.2% 17.3% 17.2% 4.1x 3.5x 12.8x 14.9x 22.8x 22.6x
Median 9,426 8,101 87.7% 105.3% 41.2% 14.6% 24.8% 3.7x 3.2x 12.3x 11.4x 21.7x 18.4x
INTERNET AND DIGITAL MEDIA
14
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
(2)
(1)
(1) Microsoft has agreed to acquire LinkedIn; share price as at 10th July 2016
(2) Verizon has agreed to acquire Yahoo's operating business; share price as at 22nd July 2016
PAGE |
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
Digital Marketing
Criteo 1,842 2,096 70.1% 79.4% NA 33.1% 28.4% 2.6x 2.1x 9.1x 6.9x 19.2x 14.8x
Callidus Software 951 1,139 84.6% 103.8% 77.8% 18.2% 11.3% 4.6x 3.9x 41.2x 28.5x NM 49.9x
Cvent 719 896 57.2% 77.9% NA 24.2% 14.9% 3.1x 2.5x 20.7x 19.1x NM NM
Bazaarvoice 397 449 88.5% 126.3% (45.1%) 3.1% 5.3% 2.0x 1.9x 36.6x 19.5x NM NM
TechTarget 273 220 84.3% 87.1% 63.1% (1.2%) 18.8% 2.5x 2.3x 13.2x 9.2x 25.1x 16.2x
The Rubicon Project 179 386 38.8% 49.7% NA 17.9% 25.0% 0.7x 0.6x 2.7x 2.5x 9.3x 9.5x
Matomy Media 175 150 87.8% 93.4% NA 0.3% 6.6% 0.6x 0.6x 9.7x 7.8x 15.7x 11.6x
Dotdigital 171 195 68.6% 109.7% 108.5% 4.0% 28.8% 4.6x 3.7x 15.9x 12.6x 27.0x 21.9x
Harte-Hanks 150 93 34.7% 36.0% (83.1%) (16.9%) NA 0.4x 0.4x NA NA NM NM
1000mercis 129 133 86.4% 100.5% (31.5%) 12.8% 23.3% 2.0x 1.7x 8.6x 7.4x 15.8x 13.3x
Marin Software 53 87 54.5% 60.4% (80.2%) (6.0%) 1.1% 0.5x 0.5x 49.2x 32.7x NM NM
Marchex 15 111 50.0% 61.0% (68.1%) (14.1%) (4.8%) 0.1x 0.1x NM 8.4x NM NM
Mean 421 496 67.1% 82.1% (7.3%) 6.3% 14.4% 2.0x 1.7x 20.7x 14.0x 18.7x 19.6x
Median 177 207 69.3% 83.2% (38.3%) 3.5% 14.9% 2.0x 1.8x 14.5x 9.2x 17.5x 14.8x
Content Providers / Communities
LinkedIn 23,405 17,655 50.7% 60.1% (22.2%) 26.3% 28.4% 6.2x 5.2x 21.8x 17.9x 34.8x 28.7x
Twitter 9,662 11,762 52.0% 55.7% NA 14.9% 27.4% 3.8x 3.4x 13.8x 11.8x 33.1x 28.7x
JustEat 4,342 4,463 84.2% 102.1% NA 23.4% 30.1% 9.6x 7.6x 32.1x 22.2x NM 32.3x
Pandora Media 2,897 2,962 62.5% 65.8% (49.0%) 20.1% (4.8%) 2.1x 1.7x NM NM NM NM
WebMD Health 2,663 1,979 75.2% 115.5% 60.7% 10.9% 32.4% 3.8x 3.5x 11.7x 10.4x 27.9x 25.4x
GoPro 1,605 1,892 43.4% 47.6% NA (14.8%) (10.0%) 1.2x 0.9x NM NM NM NM
XING 1,044 1,132 91.4% 96.4% 88.1% 22.9% 31.7% 6.5x 5.5x 20.4x 16.7x NM 34.0x
XO Group 391 502 95.4% 128.7% 40.2% 7.6% 22.3% 2.6x 2.3x 11.5x 9.6x 37.3x 29.3x
Brightcove 383 415 90.9% 235.0% (4.0%) 10.7% 5.9% 2.6x 2.3x 43.7x 33.9x NM NM
Demand Media 60 119 90.4% 124.7% (44.7%) (12.7%) (14.1%) 0.5x 0.5x NM NM NM NM
Mean 4,645 4,288 73.6% 103.2% 9.9% 10.9% 14.9% 3.9x 3.3x 22.1x 17.5x 33.3x 29.8x
Median 2,134 1,936 79.7% 99.2% (4.0%) 12.9% 24.9% 3.2x 2.9x 20.4x 16.7x 34.0x 29.0x
Intermediation and Comparison
Zillow 5,657 5,888 81.5% 96.9% 28.4% 29.9% 15.9% 6.8x 5.5x 42.4x 24.5x NM NM
Moneysupermarket 1,845 1,854 61.3% 67.6% 46.2% (10.4%) 39.7% 5.0x 4.6x 12.5x 11.7x 18.0x 16.8x
Bankrate 857 702 49.1% 66.1% (64.5%) 14.5% 23.9% 2.0x 1.7x 8.4x 7.1x 15.0x 12.1x
Angie's List 529 521 78.9% 146.7% (41.1%) (3.7%) 11.0% 1.6x 1.5x 14.5x 12.3x NM NM
Gruppo MutuiOnline 335 340 85.7% 91.6% 60.5% 6.8% 28.5% 2.3x 2.2x 8.2x 7.4x 14.4x 13.0x
Liquidity Services 165 295 83.1% 116.7% (63.8%) 25.9% 5.3% 0.3x 0.6x 6.6x 18.3x NM NA
eHealth 134 202 72.8% 82.1% (69.5%) 3.6% 7.4% 0.7x 0.7x 9.2x 6.8x 17.0x 19.6x
Mean 1,360 1,400 73.2% 95.4% (14.8%) 9.5% 18.8% 2.7x 2.4x 14.5x 12.6x 16.1x 15.4x
Median 529 521 78.9% 91.6% (41.1%) 6.8% 15.9% 2.0x 1.7x 9.2x 11.7x 16.0x 14.9x
Online Classifieds
SEEK 4,586 4,103 90.5% 125.4% 1.5% 14.9% 38.0% 6.0x 5.5x 15.8x 14.4x 28.1x 24.3x
Rightmove 4,562 4,506 75.8% 86.4% 19.1% (6.4%) 75.4% 17.2x 15.8x 22.9x 20.8x 28.6x 25.5x
Yelp 2,506 3,176 84.5% 162.0% (46.0%) 28.8% 14.9% 3.5x 2.8x 23.8x 16.3x NM NM
Zoopla 1,801 1,667 79.6% 115.4% NA 27.1% 38.9% 7.5x 6.6x 19.3x 17.0x 25.7x 22.4x
SouFun 1,775 1,745 45.5% 52.4% (63.7%) 29.5% (13.8%) 1.6x 1.2x NM 27.6x NM NM
51job 1,261 1,928 91.2% 104.5% (12.4%) 7.7% 33.4% 3.7x NA 11.0x 9.3x 18.9x 16.8x
Dice 453 391 74.9% 99.2% (8.7%) (9.7%) 28.2% 1.9x 1.9x 6.8x 6.4x 18.7x 15.4x
Monster 326 247 33.7% 39.2% (40.2%) (8.7%) 9.8% 0.5x 0.5x 5.4x 5.4x 37.8x 37.8x
Mean 2,159 2,220 72.0% 98.1% (21.5%) 10.4% 28.1% 5.2x 4.9x 15.0x 14.7x 26.3x 23.7x
Median 1,788 1,837 77.7% 101.9% (12.4%) 11.3% 30.8% 3.6x 2.8x 15.8x 15.4x 26.9x 23.4x
INTERNET AND DIGITAL MEDIA
15
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
(1) Vista Equity Partners has agreed to acquire Cvent; share price as at 16th April 2016
(2) Microsoft has agreed to acquire LinkedIn; share price as at 10th June 2016
(3) Randstad has signed a definitive agreement to acquire Monster Worldwide; share price at 8th August 2016
(1)
(2)
(3)
PAGE |
INTERNET AND DIGITAL MEDIA
16
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
Enterprise Market As a 1-Year 3-Year CY16E EV/ EV/ Price /
Value Cap. percent of Stock Stock Rev. EBITDA Revenue EBITDA Earnings
($m) ($m) 52-wk High Perf. Perf. Growth Margin CY16E CY17E CY16E CY17E CY16E CY17E
Internet Services
LendingClub 3,661 2,118 36.1% 36.2% NA 10.0% (8.0%) 7.7x 6.4x NM NM NM NM
Wix.com 1,679 1,864 88.8% 210.5% NA 37.5% 12.6% 6.0x 4.6x 47.7x 24.1x NM NM
Web.com 1,498 821 65.0% 71.1% (46.1%) 32.1% 23.7% 2.0x 1.9x 8.5x 7.3x 6.3x 5.4x
LifeLock 1,443 1,603 99.2% 184.9% 21.2% 13.5% 13.4% 2.2x 1.9x 16.2x 13.0x 22.6x 18.4x
Mean 2,070 1,601 72.3% 125.7% (12.5%) 23.3% 10.4% 4.5x 3.7x 24.1x 14.8x 14.4x 11.9x
Median 1,589 1,733 76.9% 128.0% (12.5%) 22.8% 13.0% 4.1x 3.3x 16.2x 13.0x 14.4x 11.9x
Educational Technology
Graham 2,001 2,610 77.4% 79.4% 20.4% (2.2%) 11.4% 0.8x 0.8x 6.9x 6.8x NA NA
2U 1,491 1,693 92.8% 152.4% NA 34.8% 1.1% 7.4x 5.6x NM NM NM NM
Chegg 566 620 84.8% 94.5% NA (16.9%) 7.6% 2.3x 2.4x 29.7x 15.8x NM 23.9x
K12 356 561 94.8% 110.9% (24.6%) (2.0%) 10.3% 0.4x 0.4x 3.9x 3.5x 36.2x 29.7x
Cambium Learning 353 242 88.4% 108.9% 291.1% NA NA NA NA NA NA NA NA
Rosetta Stone 137 165 81.2% 108.9% (52.8%) (12.9%) (5.2%) 0.7x NA NM NA NM NA
Mean 817 982 86.6% 109.1% 58.5% 0.2% 5.0% 2.3x 2.3x 13.5x 8.7x 36.2x 26.8x
Median 461 590 86.6% 108.9% (2.1%) (2.2%) 7.6% 0.8x 1.6x 6.9x 6.8x 36.2x 26.8x
Chinese Internet Leaders
Tencent 234,415 255,003 94.6% 144.0% 147.6% 40.0% 43.1% 10.6x 8.1x 24.5x 19.1x 39.6x 30.3x
Baidu 55,436 60,800 80.5% 116.8% 15.8% 5.5% 21.8% 5.1x 4.2x 23.5x 18.0x 37.4x 26.7x
Netease 30,442 34,736 96.2% 196.6% 277.9% 59.4% 34.5% 5.4x 4.3x 15.7x 13.2x 21.2x 17.7x
Weibo Corporation 11,399 11,319 95.2% 387.6% NA 33.2% 22.7% 17.9x 12.5x NM 45.0x NM NM
58.com 6,512 6,621 65.4% 89.7% NA 66.6% 8.0% 5.5x 4.0x NM 23.2x NM NM
Sina 4,657 5,336 88.3% 181.9% (7.4%) 13.1% 15.4% 4.7x 3.8x 30.3x 18.7x NM 41.9x
Autohome 2,379 2,882 67.4% 72.5% NA 55.3% 24.7% 2.9x 2.2x 11.6x 9.3x 17.0x 15.1x
SouFun 1,775 1,745 45.5% 52.4% (63.7%) 29.5% (13.8%) 1.6x 1.2x NM 27.6x NM NM
Sohu 946 1,674 72.7% 91.5% (46.8%) (13.0%) 2.3% 0.6x 0.5x 24.6x 6.4x NM NM
Renren 712 708 55.3% 59.6% (43.6%) NA NA NA NA NA NA NM NM
Mean 34,867 38,082 76.1% 139.3% 40.0% 32.2% 17.6% 6.0x 4.5x 21.7x 20.1x 28.8x 26.3x
Median 5,584 5,979 76.6% 104.1% (7.4%) 33.2% 21.8% 5.1x 4.0x 24.0x 18.7x 29.3x 26.7x
Online Gambling
Betfair 8,305 9,090 69.7% 96.9% 41.4% 66.9% 24.6% 4.2x 3.8x 17.0x 14.0x 27.6x 22.0x
Playtech 3,339 3,667 83.7% 90.8% (2.4%) 18.5% 41.3% 4.1x 3.5x 10.0x 8.4x 15.1x 12.5x
Mean 5,822 6,379 76.7% 93.8% 19.5% 42.7% 33.0% 4.2x 3.6x 13.5x 11.2x 21.3x 17.2x
Median 5,822 6,379 76.7% 93.8% 19.5% 42.7% 33.0% 4.2x 3.6x 13.5x 11.2x 21.3x 17.2x
Interactive Entertainment
Activision 35,642 32,002 97.3% 129.8% 147.1% 42.2% 36.2% 5.4x 5.1x 15.0x 14.1x 22.2x 20.1x
Electronic Arts 23,812 24,933 96.3% 116.8% 245.9% 8.3% 32.7% 4.9x 4.6x 15.0x 13.4x 23.5x 20.7x
Ubisoft Entertainment 4,067 3,968 82.6% 126.3% 135.8% 17.8% 41.3% 2.3x 2.0x 5.5x 4.6x 25.6x 19.8x
Take-Two Interactive 2,620 3,684 91.7% 134.5% 153.1% 2.5% 15.5% 1.6x 1.3x 10.4x 7.0x 29.9x 20.1x
Zynga 1,654 2,554 95.4% 115.5% (17.5%) 6.9% 7.9% 2.2x 2.0x 27.9x 15.5x NM 38.7x
Mean 13,559 13,428 92.6% 124.6% 132.9% 15.5% 26.7% 3.3x 3.0x 14.7x 10.9x 25.3x 23.9x
Median 4,067 3,968 95.4% 126.3% 147.1% 8.3% 32.7% 2.3x 2.0x 15.0x 13.4x 24.5x 20.1x
PAGE |
INTERNET AND DIGITAL MEDIA
17
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has merged with
has received asignificant equity investment from
has acquired
has acquired
has been acquiredby
has been acquired
by
has been acquired
byhas merged with
has been acquired
by
has been acquired
by
has been acquired
by
has been
Recapitalized by
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has beenRecapitalized by
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has become a
wholly- owned
subsidiary of
has received a
majority investment
from
has received a
majority equity
investment from
has been acquiredby
has been acquiredby
has been acquiredby
has been acquiredby
has received a
minority investment
from
has been acquiredby
has received ainvestment from
DIGITAL
MEDIA
ERP / BUSINESS
MANAGEMENT
DIGITAL
MEDIA
SUPPLY CHAIN
SOFTWARE
HEALTHCARE
TECHNOLOGY
DATA
ANALYTICS
ERP / BUSINESS
MANAGEMENT
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
APPLICATION
SOFTWARE
REAL ESTATE
SOFTWARE
EDUCATION
TECHNOLOGY
MARKETING
ANALYTICS
ERP / BUSINESS
MANAGEMENT
HEALTHCARE
TECHNOLOGY
NON-PROFIT
SOFTWARE
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
LEGAL
TECHNOLOGY
MARKETING
TECHNOLOGY
HCM
SOFTWARE
HEALTHCARE
TECHNOLOGY
SUPPLY CHAIN
SOFTWARE
INFRASTRUCTURE
SOFTWARE
INFRASTRUCTURE
SOFTWARE
HEALTHCARE
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
SUPPLY CHAIN
SOFTWARE
EDUCATION
TECHNOLOGY
INFRASTRUCTURE
SOFTWARE
ENERGY
TECHNOLOGY
ECOMMERCE
RETAIL
DATA
ANALYTICS
HEALTHCARE
TECHNOLOGY
ENERGY
TECHNOLOGY
FINANCIAL
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
MANAGED
SERVICES
HEALTHCARE
TECHNOLOGY
PUBLIC SECTOR
SOFTWARE
MARKETING
ANALYTICS
TECH-ENABLED
SERVICES
ENERGY
TECHNOLOGY
HEALTHCARE
TECHNOLOGY
HCM
SOFTWARE
NON-PROFIT
SOFTWARE
a majority stake in
has been acquired
by
HEALTHCARE
TECHNOLOGY
has been recapitalised by
APPLICATION
SOFTWARE
Energy, Power& Infrastructure
IndustrialsHealthcare & Life Sciences
Transportation & Logistics
Aerospace, Defense & Government
Services
Business Services
Building Products & Materials
Technology, Media & Telecom
Specialty Distribution
Consumer
PAGE |
HARRIS WILLIAMS & CO. OFFICE LOCATIONS
UNITED STATES EUROPE
BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501
Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400
Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700
Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072
San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260
Washington, D.C. 800 17th St. NW2nd FloorWashington, D.C. 20006Phone: +1 202-207-2300
FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00
London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900
NETWORK OFFICES
Beijing
Hong Kong
Mumbai
New Delhi
Shanghai
Technology, Media & Telecom
Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries
18
OUR FIRM
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
PAGE |
HARRIS WILLIAMS & CO.
FactSet as of 14th October 2016, broker reports and various industry news outlets
19
SOURCES
EUROPEAN TECHNOLOGY
INDUSTRY UPDATE │ OCTOBER 2016
Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.
THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT +44 (0) 20 7518 8900.
The information and views contained in this report were prepared by Harris Williams & Co. Ltd (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information.
Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Copyright© 2016 Harris Williams & Co., all rights reserved.
DISCLOSURES