M&A SNAPSHOTQ2 2013

JULY 1ST, 2013

M&A SNAPSHOT

OVERVIEW COMMENTARY

M&A activity remained slow in Q2 2013, continuing Q1‘s levels. There were 33 M&A transactions within the $25mm - $1b range in Q2, remaining relatively consistent with Q1’s mark of 34. Q2 activity was down a considerable 42% year-over-year from 2012, however the good news is total consideration paid increased by 15%, from $6b in Q1 to $7b in the second quarter of 2013.

Marketing automation continues as a prevalent theme in Q2, as industry leaders made large strategic moves to position themselves for the projected growth in digital marketing spend. Salesforce announced the acquisition of publicly traded ExactTarget (NYSE: ET) for $2.5b (paying a 52% premium to ET’s previous day closing price) and Adobe announced the acquisition of Neolane for $600mm, representing a 10.3x LTM revenue multiple. We expect M&A within the digital marketing landscape to remain active as IT spend continues to shift towards revenue generating initiatives.

Yahoo made it to the top of our most active M&A leader board for the second consecutive quarter, following Q1’s performance with 8 announced transactions in Q2. The most significant acquisition under Yahoo’s new management is the $1.1b acquisition of micro-blogging social website Tumblr, representing a 84.6x multiple on Tumblr’s 2012 revenue.

Architect Partners published M&A Alerts on ten of the most strategic acquisitions of Q2 2013.

FOLLOWING ANALYSIS

M&A DASHBOARD:

NOTABLE ACQUIRERS:

M&A TRANSACTIONS:

OTHER NOTABLE TRANSACTIONS:

COMING SOON

ANALYSIS OF VC-BACKED M&A EXITS

SUMMARY OF QUARTERLY ACTIVITY IN NUMBERS AND TONE

ACTIVE INFLUENTIAL BUYER ACTIVITY

SUMMARY OF TRANSACTIONS BETWEEN $25MM-$1B IN VALUE

SUMMARY OF NOTABLE TRANSACTIONS WITHOUT ANNOUNCED VALUE OR ABOVE $1B.

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COVERAGEArchitect Partners tracks M&A activity within the converging Internet | mobile | digital media sectors. The following assessment is focused on M&A transactions with announced values of between $25mm and $1B as these typically represent successful business-building endeavors.

MARKET TONERemains at below average levels of activity. Catalysts to improvement not yet clear.

Note: 1) Includes all Internet | mobile | digital media transactions regardless of transaction value. Transaction values within a range are presented as a mid-point value

Source: Architect Partners, Capital IQ, company filings and public information 3

M&A DASHBOARD

2011Q2 Q3 Q4

M&A Exits (#)............................................................................................

Total Consideration Paid ($b)...............................................................

Venture-Backed M&A Exits (#)............................................................

Median Transaction Size ($mm)..........................................................

U.S.-based Target (%).............................................................................

All Internet | Mobile | Digital Media M&A Exits(1)............................

2012Q1 Q2 Q3 Q4

352$440$

364$

466$

$12 $14

$12 $10

41

57 44

63

$103 $127

$107 $92

56% 46% 47% 48%

12 16 15 14

2013Q1 Q2

68 61 63 57

$14 $12 $11

$9

27 23 23

19

$98 $113

$80 $90

48% 49% 52% 42%

457$ 482$ 450$ 417$

$12 $12

$6 $7

352$440$

387$327$

12 17

13 11

41 46

34 33

$103 $127

$104 $130

45% 55%

41% 42%

The following acquirers are generally active or influential buyers within the Internet | mobile | digital media sectors. Below, we highlight announced acquisitions by the most active players in the second quarter of 2013.

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ACQUIRER # TARGETS

8

4

3

3

2

2

2

2

2

2

1

1

NOTABLE ACQUIRERS

5

ACQUIRER # TARGETS

1

1

1

1

1

1

1

1

1

1

1

1

1

NOTABLE ACQUIRERS (continued)

M&A transactions that have announced values between $25mm and $1b announced in Q2 2013 within the Internet | mobile | digital media sectors.

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M&A TRANSACTIONS: $25MM-$1B

Note: Transaction values within a range are presented as a mid-point value.Source: Architect Partners, Capital IQ, company filings and public information

#ANNOUNCED

DATE BUYER TARGETTRANSACTION VALUE ($MM) TARGET DESCRIPTION

AP INSIGHTSM

M&A ALERTVC-

BACKED

NON SERVICE PROVIDER TRANSACTIONS

1 06/27/2013 Adobe Neolane $600 Offers a marketing automation platform for cross-channel campaign management, lead generation and customer data management. Arcueil, France-based.

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2 05/06/2013 McAfee Stonesoft $377 Delivers platform for military-grade security products, a next generation firewall/VPN product, clustering and multi-link technologies. Helsinki, Finland-based.

3 05/06/2013 iQIYI.com PPStream $370 Offers a video encyclopedia, video search, games and downloads. Shanghai, China-based.

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4 06/24/2013 Thoma Bravo Keynote Systems $399 Develops and sells hardware and software to measure, test and improve the quality of service of Internet and mobile communications. San Mateo, CA-based.

5 04/03/2013 Cisco Ubiquisys $310 Provides indoor, small cell wireless networking equipment and software to wireless service providers. Swindon, U.K.-based.

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6 05/08/2013 Trulia Market Leader (NASDAQ:LEDR)

$306 Provides real estate agents, agent teams and brokerage companies with subscription software and advertising products. Kirkland, WA-based.

7 04/17/2013 Intel Mashery $180 Provides API management tools including platform strategy, measurement of business objectives and infrastructure support. San Francisco, CA-based.

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8 05/01/2013 DreamWorks Animation AwesomenessTV $151 Operates a YouTube channel with programming geared toward teens. Los Angeles, CA-based.

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9 06/19/2013 Tyco International Exacq Technologies $150 Develops open architecture and video management system (VMS) solutions for security and surveillance applications. Indianapolis, Indiana-based.

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10 04/24/2013 Fusion-io NextGen Storage $120 Provides enterprise class storage systems used for server virtualization, virtual desktop, business critical application and analytics solutions. Louisville, CO-based.

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#ANNOUNCED

DATE BUYER TARGETTRANSACTION VALUE ($MM) TARGET DESCRIPTION

AP INSIGHTSM

M&A ALERTVC-

BACKED

11 05/21/2013 SolarWinds N-able Technologies $120 Provides network monitoring and remote systems management software. Ottawa, Canada-based.

12 04/11/2013 LinkedIn Pulse $90 News reading application that aggregates articles from a range of topics and sources selected by users and presents them in a clean and stylish format. San Francisco, CA-based.

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13 04/25/2013 Facebook Parse $85 Mobile backend-as-a-service platform (mBaaS) for iOS and Android applications. San Francisco, CA-based.

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14 05/31/2013 Mediagrif Interactive Jobboom and Réseau Contact

$63 Jobboom operates a Website for jobs including postings, job search engine, resume-creation tools and professional training. Réseau Contact operates a dating site. Montreal, Canada-based.

15 04/01/2013 Singapore Press Holdings

SGCM $48 Operates sgCarMart.com, an online portal for new and used cars. Singapore-based.

16 05/07/2013 Higher One SLM Corp, Campus Solutions Division

$47 Provides B2B solutions including e-commerce and billing payment solutions to college and university business offices. Boston, Massachusetts-based.

17 05/06/2013 Xiamen 35.Com Technology

CNFOL.COM $34 Operates a Chinese online financial information portal. Fuzhou, China-based.

18 04/23/2013 Google Wavii $30 Provides an online platform which creates social content in real-time from news available on the Internet. Seattle, WA-based.

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19 05/16/2013 Aruba Meridian Apps $26 Provides mobile phone application that engages users with indoor turn-by-turn directions and enterprise mobile-device software. Portland, Oregon-based.

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20 05/13/2013 ITV High Noon Productions

$26 Creative house for television media production. Santa Monica, CA-based.

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M&A TRANSACTIONS: $25MM-$1B (continued)

Note: Transaction values within a range are presented as a mid-point value.Source: Architect Partners, Capital IQ, company filings and public information

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M&A TRANSACTIONS: $25MM-$1B (continued)

Note: Transaction values within a range are presented as a mid-point value.Source: Architect Partners, Capital IQ, company filings and public information

#ANNOUNCED

DATE BUYER TARGETTRANSACTION VALUE ($MM) TARGET DESCRIPTION

SERVICE PROVIDER TRANSACTIONS

1 04/04/2013 Telenor Cosmo Bulgaria Mobile

$934 Offers mobile, mobile broadband and hybrid fixed telephony services. Sofia, Bulgaria-based.

2 04/04/2013 Empresa Nacional de Telecomunicaciones

Nextel del Perú $400 Operates as a provider of mobile communications in Peru and offers a fully integrated wireless communications tool with Nextel Direct Connect SM service (a digital two-way radio feature). San Isidro, Peru-based.

3 05/16/2013 TELUS Mobilicity $374 Offers voice, text and data services. Also sells mobile phones online. Toronto, Canada-based.

4 04/16/2013 BT Group Post and Telecommunications of Kosovo

$364 Provides fixed telecommunication services to retail and business customers including SIM cards, prepaid scratch cards, post paid services and international roaming services. Prishtina, Republic of Kosovo-based.

5 04/11/2013 Sinclair Broadcast Fisher Communications

$360 Owns and operates 20 network-affiliated television stations, 3 Seattle radio stations and 1 managed radio station in the western US. Seattle, WA-based.

6 04/23/2013 Marubeni NEC Mobiling $335 Operates as a distributor for mobile network operators to provide subscriptions for mobile phone, terminals/peripheral merchandise and offer subscriber-related support services. Tokyo, Japan-based.

7 05/10/2013 Cobhalm Axwell Wireless $130 Provides wireless coverage solutions, including cellular, public safety, broadcast, military communication, air band communication and 3G/4G cellular coverage. Chesham, U.K.-based.

8 05/10/2013 York Capital North American Retail Telecommunications

$126 Retail telecommunications operations in the U.S. and Canada, including international and domestic long-distance voice, local, broadband, Ethernet, hosted-VoIP and wireless services. McLean, VA-based.

9 04/26/2013 China Telecommunications

E-surfing Media $194 Offers platform services for mobile Internet and online videos. China-based.

10 06/25/2013 CJ Hellovision Honam Broadcasting $107 Offers cable broadcasting services. Mokpo, South Korea-based.

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M&A TRANSACTIONS: $25MM-$1B (continued)

Note: Transaction values within a range are presented as a mid-point value.Source: Architect Partners, Capital IQ, company filings and public information

#ANNOUNCED

DATE BUYER TARGETTRANSACTION VALUE ($MM) TARGET DESCRIPTION

11 05/03/2013 East Capital Explorer AS Starman $38 Operates as a cable television network based telecommunication company. Tollinn, Estonia-based.

12 04/24/2013 EmiTel INFO-TV-OPERATOR $36 Provides radio, television and mobile broadcasting services.

13 06/10/2013 Elisa Kymen Puhelin $34 Telecommunications services provider. Kotka, Finland-based.

#ANNOUNCED

DATE BUYER TARGETTRANSACTION VALUE ($MM) TARGET DESCRIPTION

AP INSIGHTSM

M&A ALERTVC-

BACKED

1 06/24/2013 Vodafone Vierte Kabel Deutschland $14,699 Engages in the provision of basic cable and premium television products and services primarily through individual contracts with customers or collective contracts with landlords and housing associations. Unterfoehring, Germany-based.

2 06/04/2013 Salesforce.com ExactTarget (NYSE: ET)

$2,500 Provides cross-channel digital marketing software-as-a-service (SaaS) encompassing email, mobile, social media, Websites, marketing automation and data management. Indianapolis, Indiana-based.

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3 06/13/2013 Gannett Co. Belo Corporation $2,146 Owns 20 television stations, including ABC, CBS, NBC, FOX, CW and MyNetwork TV affiliates, as well as their associated Web sites in 15 markets. Dallas, Texas-based.

4 06/04/2013 IBM SoftLayer Technologies

$2,000 Operates a cloud infrastructure platform for companies including dedicated servers, cloud computing, cloud storage, content delivery network and email delivery service. Dallas, TX-based.

5 06/11/2013 Google Waze $1,300 Provides a social mobile application that enables drivers to build and use real-time road intelligence on smartphones. Raanana, Israel-based.

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6 06/24/2013 Hutchison 3G Ireland Telefónica Ireland $1,113 Provides prepay services, pay monthly services, broadband services, calling and voicemail services, messaging services, mobile Internet, email, ringtones, games and data tariffs. Dublin, Ireland-based.

7 05/20/2013 Yahoo Tumblr $1,100 A microblogging platform and social networking website that allows users to post multimedia and other content to a short-form blog. New York, NY-based.

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8 06/12/2013 Netsuite OrderMotion - Cloud-based order management and analytics for eCommerce and direct-to-consumer businesses. Burlington, MA-based.

9 04/22/2013 IBM Urbancode - Provides tools that address the continuous release and deployment needs associated with rapid software development, or “DevOps.” Cleveland, Ohio-based.

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A number of important transactions were announced in the second quarter of 2013 with consideration in excess of $1b or with unannounced transaction values.

M&A TRANSACTIONS: OTHER NOTABLE

Note: Transaction values within a range are presented as a mid-point value.Source: Architect Partners, Capital IQ, company filings and public information

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Note: Transaction values within a range are presented as a mid-point value.Source: Architect Partners, Capital IQ, company filings and public information

M&A TRANSACTIONS: OTHER NOTABLE (continued)

#ANNOUNCED

DATE BUYER TARGETTRANSACTION VALUE ($MM) TARGET DESCRIPTION

AP INSIGHTSM

M&A ALERTVC-

BACKED

10 04/03/2013 TripAdvisor GateGuru - A mobile app that provides real-time information on airports, weather and flights using crowdsourced data. New York, NY-based.

11 05/14/2013 @WalmartLabs OneOps - Automatically scales and repairs applications to ensure availability and optimal utilization of cloud infrastructure. U.S.-based.

12 06/20/2013 Twitter Spindle Labs Develops an app to let smartphone users discover social media updates from nearby stores, restaurants, bars, or museums using their phone’s location technology. Boston, MA-based.

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