robert ullman william downing north american managing … · 2019-05-15 · june 2018 north...

June 2018

NORTH AMERICAN

IT HARDWARE AND SERVICES

M&A Activity and Valuation TrendsQ2 | 2018

Robert UllmanManaging Director

[email protected]

William DowningManaging Director

[email protected]

Michael PucciAssociate Director

[email protected]

Michael HilcoveSenior Associate

[email protected]

Michael ReisterSenior Analyst

[email protected]

June 2018

I. Economic Indicators 3

II. Dinan Index Constituents 5

III. Capital Market Activity 6

IV. Public Sector Valuations 8

V. Mergers and Acquisitions Overview 12

VI. Second Quarter Transactions Overview 13

VII. Dinan Capital Advisors 18

Section Page

Table of Contents

June 2018

-10%

0%

10%

20%

30%

40%

Per

cen

t C

han

ge, I

nd

ex P

rice

Major Indices Performance

S&P 500 Index (^SPX) - Index Value Dow Jones Industrial Average (^DJI) - Index Value NASDAQ Composite Index (^COMP) - Index Value Russell 2000 Index (^RUT) - Index Value

Economic IndicatorsMacroeconomic Overview

3

Major Economic Indicators Interest Rates

As of As of As of As of

Index 09/30/2017 12/31/2017 03/31/2018 06/30/2018

^SPX 2519.36 2673.61 2640.87 2718.37

^COMP 6495.96 6903.39 7063.45 7510.30

^DJI 22405.09 24719.22 24103.11 24271.41

^RUT 1490.86 1535.51 1529.43 1643.07

Interest Rates 09/30/2017 12/31/2017 03/31/2018 06/30/2018

United States Treasury - 2 Year 1.47% 1.89% 2.27% 2.52%




United States Prime Rate 4.25% 4.50% 4.75% 5.00%

Economic Indicator 2013 2014 2015 2016 2017

Real GDP (% change) 2.20% 2.40% 3.00% 2.08% 2.30%

CPI (% change) 1.50% 1.62% 1.90% 2.38% 2.20%

Cons. Spending (% change) 2.40% 2.50% 2.90% 3.10% 3.30%

Nonfarm Productivity 0.90% 0.70% -2.20% 1.00% 1.50%

Unemployment Rate 7.40% 6.20% 5.80% 4.40% 4.10%

Source: Capital IQ, S&P NetAdvantage

June 2018

5

3

16

Q2 2018 Public Offerings Count

$0-100MM $100-250MM $250MM+

136

11


$0-100MM $100-250MM $250MM+

139

9


$0-100MM $100-250MM $250MM+

74

6


$0-100MM $100-250MM $250MM+

4

$3,673

$3,564

$3,517$3,537 $3,521

$3,740

$3,400

$3,500

$3,600

$3,700

$3,800

2013 2014 2015 2016 2017 2018P

IT S

pen

din

g (B

illio

ns)

Year

Global IT Spending

65

70

75

80

85

90

2012 2013 2014 2015 2016 2017 2018

Ind

ex

Pri

ce

Year

U.S. Technology Pulse Index

The Technology Pulse Index is released monthly by the Federal Reserve to beused as an indicator for economic health in the technology sector. The index isdriven by investment in IT goods, consumption of personal computers andsoftware, employment in the IT sector, IT industrial production, and ITshipments.

The figure above represents the annual amount of money spent on IT across the world with projections for 2018

Economic IndicatorsInformation Technology Data

Source: Capital IQ, U.S. Federal Reserve, Statista

June 20185

Dinan Index ConstituentsIT Hardware and Services

Diversified Conglomerate

Electronic Manufacturing Services

IT Consulting and Solutions Providers

IT Distribution

IT Storage Hardware

Network Hardware

Semiconductors/ Semiconductors

Equipment

June 2018

-20%

-10%

0%

10%

20%

30%

40%

Per

cen

t C

han

ge, I

nd

ex P

rice

Dinan Hardware and Services Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

6

Capital Market ActivityIT Hardware and Services

Source: Capital IQ

Capitalization Number of % of Agg. Equity % of Agg. Equity

Profile Companies Companies Mkt. Value Mkt. Value

> $10B 27 52.94% $3,800,064.63 97.92%

$5B - $10B 6 11.76% $43,444.16 1.12%

$1B - $5B 13 25.49% $35,372.72 0.91%

< $1B 5 9.80% $2,048.99 0.05%

Total 51 100.00% $3,880,930.51 100.00%

June 2018

-20%

0%

20%

40%

60%

Pe

rcen

t C

han

ge, I

nd

ex P

rice Network Hardware vs. S&P 500

Dinan Network Hardware Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

-20%

0%

20%

40%

60%

Pe

rcen

t C

han

ge, I

nd

ex P

rice Semiconductors and Semiconductor Equipment vs. S&P 500

Dinan Semiconductors and Equipment Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

-20%

0%

20%

40%

Pe

rcen

t C

han

ge, I

nd

ex P

rice IT Storage Hardware vs. S&P 500

Dinan IT Storage Hardware Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

-20%

0%

20%

40%

Pe

rcen

t C

han

ge, I

nd

ex P

rice IT Distribution vs. S&P 500

Dinan IT Distibution Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

-20%

0%

20%

40%

Pe

rcen

t C

han

ge, I

nd

ex P

rice IT Consulting and Solutions vs. S&P 500

Dinan IT Consulting and Solutions Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

-20%

0%

20%

40%

Pe

rcen

t C

han

ge, I

nd

ex P

rice Electronic Manufacturing Services vs. S&P 500

Dinan Electronic Manufacturing Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

-20%

0%

20%

40%

Pe

rcen

t C

han

ge, I

nd

ex P

rice Diversified Conglomerates vs. S&P 500

Dinan Diversified Conglomerates Index (Price) - Index Value S&P 500 Index (^SPX) - Index Value

Capital Market ActivityDinan Index Segments vs. S&P 500

7

Source: Capital IQ

June 2018

8.2x

5.8x

12.0x

7.7x5.8x

12.9x 12.7x

9.0x

7.0x

12.4x

8.5x

5.6x

9.2x

12.8x

10.5x

8.0x

13.0x

10.0x8.9x

10.8x 11.5x11.5x

8.0x

16.0x

9.0x10.1x

13.6x

10.2x

0x

5x

10x

15x

20x

Diversified Conglomerates Electronic ManufacturingServices

IT Consulting and SolutionsProviders

IT Distribution IT Storage Hardware Network Hardware Semiconductors

Historical TEV/EBITDA by Segment

TEV/EBITDA 6/30/2015 TEV/EBITDA 6/30/2016 TEV/EBITDA 6/30/2017 TEV/EBITDA 6/30/2018

2.4x

0.3x

1.6x

0.3x

0.9x

2.2x2.6x

2.3x

0.3x

1.7x

0.3x0.7x

2.0x

2.9x3.0x

0.5x

1.5x

0.4x

1.4x

2.4x

3.3x3.5x

0.4x

2.5x

0.3x

1.6x

2.9x

3.8x

0x

1x

2x

3x

4x

5x

Diversified Conglomerates Electronic ManufacturingServices

IT Consulting and SolutionsProviders

IT Distribution IT Storage Hardware Network Hardware Semiconductors

Historical TEV/Revenue by Segment

TEV/REV 6/30/2015 TEV/REV 6/30/2016 TEV/REV 6/30/2017 TEV/REV 6/30/2018

Public Sector Valuations IT Hardware and Services

8

Source: Capital IQ

June 20189

Industry / Last Twelve Months Next Twelve Months

Company Name Ticker TEV (mm) Market Cap (mm) Rev (mm) EBITDA (mm) EBIT (mm) TEV/Rev TEV/EBIT TEV/EBITDA Forward TEV/Rev Forward TEV/EBITDA


Diversified Conglomerate

Alphabet Inc. NasdaqGS:GOOGL $681,969.70 $779,552.70 $123,898.00 $38,205.00 $30,325.00 5.82x 23.26x 18.58x 4.85x 13.16x

Apple Inc. NasdaqGS:AAPL $943,741.20 $909,841.20 $247,417.00 $76,378.00 $66,056.00 3.81x 14.29x 12.36x 3.54x 11.61x

CA, Inc. NasdaqGS:CA $14,367.40 $14,852.40 $4,235.00 $1,323.00 $1,216.00 3.39x 11.82x 10.86x 3.37x 8.78x

Cisco Systems, Inc. NasdaqGS:CSCO $176,072.03 $202,365.03 $48,619.00 $14,494.00 $12,532.00 3.62x 14.05x 12.15x 3.49x 10.07x

HP Inc. NYSE:HPQ $37,346.53 $36,542.53 $55,507.00 $4,647.00 $4,210.00 0.67x 8.87x 8.04x 0.65x 7.83x

International Business Machines Corporation NYSE:IBM $161,987.17 $128,240.17 $79,096.00 $16,653.00 $12,098.00 2.02x 13.39x 9.73x 2.00x 8.42x

Microsoft Corporation NasdaqGS:MSFT $713,988.11 $757,640.11 $110,360.00 $45,319.00 $35,058.00 7.19x 27.49x 20.35x 6.05x 14.47x

Xerox Corporation NYSE:XRX $10,685.44 $6,122.44 $9,957.00 $1,433.00 $954.00 1.04x 11.12x 7.42x 1.08x 5.78x

Median $169,029.60 $165,302.60 $67,301.50 $15,573.50 $12,315.00 3.5x 13.7x 11.5x 3.4x 9.4x

Electronic Manufacturing Services

Benchmark Electronics, Inc. NYSE:BHE $915.13 $1,384.11 $2,558.02 $133.97 $86.47 0.36x 9.63x 6.45x 0.36x 0.00x

Celestica Inc. TSX:CLS $1,851.23 $2,171.81 $6,128.10 $245.30 $169.30 0.23x 8.48x 5.85x 0.22x 4.78x

Flex Ltd. NasdaqGS:FLEX $8,922.28 $7,454.06 $25,441.13 $1,110.64 $564.69 0.35x 15.80x 8.03x 0.32x 6.32x

Jabil Inc. NYSE:JBL $6,442.74 $4,659.18 $21,346.61 $1,365.79 $592.29 0.30x 10.88x 4.72x 0.29x 4.12x

Plexus Corp. NasdaqGS:PLXS $1,769.01 $1,963.49 $2,772.18 $162.85 $115.60 0.66x 14.08x 10.28x 0.60x 9.33x

TE Connectivity Ltd. NYSE:TEL $35,162.52 $31,533.52 $14,445.00 $3,109.00 $2,429.00 2.50x 14.83x 11.59x 2.36x 10.40x

Trimble Inc. NasdaqGS:TRMB $9,032.37 $8,184.37 $2,785.80 $466.30 $276.10 3.24x 29.49x 18.19x 2.83x 14.34x

Median $6,442.74 $4,659.18 $6,128.10 $466.30 $276.10 0.36x 14.08x 8.03x 0.36x 6.32x

IT Consulting and Solutions Providers

Accenture plc NYSE:ACN $101,272.08 $104,819.98 $38,573.62 $6,276.06 $5,684.93 2.63x 17.81x 16.14x 2.45x 14.35x

Agilysys, Inc. NasdaqGS:AGYS $320.37 $360.14 $127.36 -$7.42 -$10.13 2.52x NM NM 2.30x 22.91x

Automatic Data Processing, Inc. NasdaqGS:ADP $58,800.46 $59,091.66 $12,626.40 $2,781.60 $2,420.80 4.50x 24.29x 21.14x 4.19x 18.44x

Black Box Corporation NasdaqGS: BBOX $159.82 $30.66 $774.64 -$11.59 -$28.54 0.20x NM 15.94x 0.00x 0.00x

CACI International Inc NYSE:CACI $5,190.10 $4,162.75 $4,435.16 $409.98 $342.75 1.17x 15.14x 12.66x 1.13x 12.92x

Cognizant Technology Solutions Corporation NasdaqGS: CTSH $42,223.15 $46,280.15 $15,176.00 $3,158.00 $2,702.00 2.78x 15.62x 13.36x 2.55x 11.75x

Gartner, Inc. NYSE:IT $14,911.63 $12,125.82 $3,649.89 $417.69 $135.89 4.09x 109.73x 35.70x 3.69x 19.67x

Perficient, Inc. NasdaqGS:PRFT $974.99 $924.47 $482.82 $55.91 $36.13 2.02x 26.99x 17.44x 1.91x 14.04x

Unisys Corporation NYSE:UIS $678.34 $657.44 $2,785.70 $240.30 $199.50 0.24x 3.40x 2.82x 0.25x 1.72x

Median $5,190.10 $4,162.75 $3,649.89 $409.98 $199.50 2.52x 17.81x 16.04x 2.30x 14.04x

Source: Capital IQ

June 201810




IT Distribution

Anixter International Inc. NYSE:AXE $3,323.85 $2,116.45 $7,995.80 $368.90 $309.40 0.42x 10.74x 9.01x 0.40x 7.34x

Arrow Electronics, Inc. NYSE:ARW $9,668.45 $6,595.98 $27,951.34 $1,241.80 $1,078.09 0.35x 8.95x 7.77x 0.33x 7.10x

CDW Corporation NasdaqGS:CDW $15,798.84 $12,260.64 $15,541.90 $1,162.80 $899.50 1.02x 17.56x 13.59x 0.98x 12.59x

ScanSource, Inc. Nasdaq:SCSC $1,277.36 $1,030.56 $3,769.70 $134.86 $100.38 0.34x 12.73x 9.47x 0.32x 8.86x

SYNNEX Corporation NYSE:SNX $5,427.14 $3,973.51 $19,113.52 $711.93 $525.97 0.28x 10.32x 7.63x 0.27x 7.19x

Tech Data Corporation NasdaqGS:TECD $4,420.98 $3,146.96 $38,299.71 $628.15 $501.31 0.12x 8.82x 7.04x 0.12x 5.60x

WESCO International, Inc. NYSE:WCC $3,921.23 $2,688.11 $7,900.35 $381.53 $327.50 0.50x 11.97x 10.28x 0.47x 8.95x

Median $4,420.98 $3,146.96 $15,541.90 $628.15 $501.31 $0.35 $10.74 $9.01 $0.33 $7.34

IT Storage Hardware

Hewlett Packard Enterprise Company NYSE:HPE $29,343.97 $22,118.97 $29,873.00 $2,895.00 $712.00 0.97x 40.42x 10.09x 0.96x 5.46x

NetApp, Inc. NasdaqGS:NTAP $17,220.13 $20,691.13 $5,911.00 $1,069.00 $907.00 2.91x 18.99x 16.11x 2.77x 11.55x

Pure Storage, Inc. NYSE:PSTG $4,845.85 $5,513.55 $1,096.32 -$127.01 -$188.84 4.42x NM NM 3.40x 38.49x

Quantum Corporation NYSE:QTM $194.44 $76.28 $478.23 $8.72 $3.47 0.41x 56.04x 22.30x 0.40x 0.00x

Seagate Technology plc NasdaqGS:STX $18,106.40 $16,210.40 $10,755.00 $2,143.00 $1,506.00 1.68x 12.02x 8.45x 1.60x 7.51x

Western Digital Corporation NasdaqGS:WDC $29,367.33 $23,164.33 $20,372.00 $5,724.00 $3,648.00 1.44x 8.05x 5.13x 1.39x 4.31x

Median $17,663.27 $18,450.77 $8,333.00 $1,606.00 $809.50 1.56x 18.99x 10.09x 1.50x 6.49x

Network Hardware

Arista Networks, Inc. NYSE:ANET $17,454.04 $19,154.94 $1,783.20 $556.99 $535.59 9.79x 32.59x 31.34x 7.87x 22.51x

Ciena Corporation NYSE:CIEN $3,808.26 $3,786.36 $2,849.28 $307.63 $200.52 1.34x 18.99x 12.38x 1.21x 8.56x

Cisco Systems, Inc. NasdaqGS:CSCO $176,072.03 $202,365.03 $48,619.00 $14,494.00 $12,532.00 3.62x 14.05x 12.15x 3.49x 10.07x

F5 Networks, Inc. NasdaqGS:FFIV $9,514.54 $10,539.21 $2,112.33 $638.70 $586.58 4.50x 16.22x 14.90x 4.34x 11.17x

Juniper Networks, Inc. NYSE:JNPR $8,778.86 $9,573.76 $4,888.80 $1,026.90 $806.70 1.80x 10.88x 8.55x 1.82x 7.77x

NETGEAR, Inc. NasdaqGS:NTGR $1,585.72 $1,971.96 $1,428.24 $103.40 $79.29 1.11x 20.00x 15.34x 1.00x 0.00x

QUALCOMM Incorporated NasdaqGS:QCOM $66,727.76 $83,204.76 $22,605.00 $6,544.00 $5,003.00 2.95x 13.61x 10.36x 3.06x 9.44x

Viavi Solutions Inc. NasdaqGS:VIAV $2,400.67 $2,317.47 $814.50 $113.90 $49.00 2.95x 48.99x 21.08x 2.29x 13.78x

Median $9,146.70 $10,056.48 $2,480.81 $597.84 $561.08 2.95x 17.61x 13.64x 2.67x 9.76x

Source: Capital IQ

June 201811




Semiconductors/ Semiconductors Equipment

Advanced Micro Devices, Inc. NasdaqCM:AMD $14,873.47 $14,530.47 $5,798.00 $467.00 $313.00 2.57x 48.45x 32.26x 2.22x 17.18x

Analog Devices, Inc. NasdaqGS:ADI $41,752.39 $35,576.47 $6,006.75 $2,668.40 $1,878.20 6.95x 22.23x 15.65x 6.79x 14.75x

Applied Materials, Inc. NasdaqGS:AMAT $46,515.73 $46,561.73 $16,484.00 $5,078.00 $4,644.00 2.82x 10.02x 9.16x 2.59x 8.16x

Broadcom Inc. NasdaqGS:AVGO $114,154.05 $104,743.05 $19,648.00 $8,738.00 $4,160.00 5.81x 27.44x 13.06x 5.50x 6.53x

Intel Corporation NasdaqGS:INTC $244,063.60 $231,648.60 $64,031.00 $27,512.00 $19,133.00 3.81x 12.76x 8.87x 3.54x 7.62x

KLA-Tencor Corporation NasdaqGS:KLAC $15,526.11 $15,954.18 $3,905.34 $1,524.71 $1,462.69 3.98x 10.61x 10.18x 3.65x 8.87x

Micron Technology, Inc. NasdaqGS:MU $61,967.47 $60,820.47 $28,089.00 $17,775.00 $13,235.00 2.21x 4.68x 3.49x 1.88x 2.87x

Median $46,515.73 $46,561.73 $16,484.00 $5,078.00 $4,160.00 3.81x 12.76x 10.18x 3.54x 8.16x

Source: Capital IQ

June 2018

1.3x2.7x

3.5x1.9x 1.4x

3.0x1.7x

12.5x 13.1x

10.8x

12.9x

7.8x

14.3x13.2x

0x

2x

4x

6x

8x

10x

12x

14x

16x

2012 2013 2014 2015 2016 2017 2018

Transaction Multiples

Series2 Series3

124 123 117 126104 108 108

97109 109 108

94108

9 11 19 9

1621 15

2321 21 15

2818

0

20

40

60

80

100

120

140

160

Q22015

Q32015

Q42015

Q12016

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Tran

sact

ion

Co

un

t

Quarterly M&A Transactions

Strategic Financial

560 555 537 517 505 503

248

0

100

200

300

400

500

600

2012 2013 2014 2015 2016 2017 2018YTD

Tran

sact

ion

Co

un

t

Yearly Transaction Overview

12

Mergers & Acquisitions OverviewIT Hardware and Services

Source: Capital IQ

June 201813

Second Quarter Transactions OverviewIT Hardware and Services

Source: Capital IQ

Target LTM Enterprise Enterprise Value / LTM

Date Acquirer Target Industry Segment Revenue EBITDA Value Revenue EBITDA

6/30/2018 Netskope, Inc. Sift Security, Inc. IT Consulting/Solutions Providers - - - - -

6/29/2018 Structured Innovations, Ltd. Legacy Marketing, Inc. IT Consulting/Solutions Providers - - - - -

6/29/2018 First Tek Inc. Useagility LLC Electronic Manufacturing Services - - - - -

6/28/2018 Cenero LLC avectus LLC Semiconductors/Semi Equipment - - - - -

6/28/2018 HS2 Solutions, Inc. Infield Digital, LLC IT Consulting/Solutions Providers - - - - -

6/28/2018 Reflexions Data, LLC Familiar Studio LLC IT Consulting/Solutions Providers - - - - -

6/27/2018 Consulting Solutions International, Inc. Meridian Technologies, Inc. Network Hardware - - - - -

6/27/2018 BlueModus, Inc. CyberLancers LLC IT Consulting/Solutions Providers - - - - -

6/26/2018 Temprano Techvestors, Inc. Corporate Armor, Inc. IT Consulting/Solutions Providers - - - - -

6/26/2018 Quantum Retail Technology, Inc. MBI Solutions, LLC IT Consulting/Solutions Providers - - - - -

6/19/2018 Ping Identity Corporation Elastic Beam, Inc. Electronic Manufacturing Services - - - - -

6/19/2018 Global Technology Resources, Inc. Network Professionals Group, LLC Electronic Manufacturing Services - - $0.50 - -

6/18/2018 auticon GmbH Mindspark, Inc (nka:Auticon U.S.) IT Consulting/Solutions Providers - - - - -

6/18/2018 Accscient LLC Applications2U, LLC IT Consulting/Solutions Providers - - - - -

6/15/2018 Roynat Capital, Inc. Decisive Technologies Inc. IT Consulting/Solutions Providers - - - - -

6/15/2018 Wave Computing, Inc. MIPS Technologies, Inc. Electronic Manufacturing Services - - - - -

6/15/2018 Continuum Managed Services, LLC Carvir LLC IT Consulting/Solutions Providers - - - - -

6/15/2018 SQN Capital Management, LLC Suniva Inc. IT Consulting/Solutions Providers - - - - -

6/14/2018 Atlantic Metro Communications, Inc. Data Centers in United States Electronic Manufacturing Services - - - - -

6/14/2018 Tecnos Global Company of America, Inc. Lirik, inc. IT Consulting/Solutions Providers $5.28 - $3.50 0.66x -

6/14/2018 Art & Logic, Inc. Accomplio LLC Network Hardware - - - - -

6/13/2018 Rizing, LLC Aasonn, LLC IT Consulting/Solutions Providers - - - - -

6/11/2018 Infinite Electronics, LLC Integrated Network Cable, Inc. Electronic Manufacturing Services - - - - -

6/11/2018 Planet Pharma, LLC R121 LLC IT Consulting/Solutions Providers - - - - -

6/11/2018 LiveAction, Inc. Savvius, Inc. IT Distribution - - - - -

6/8/2018 Security National Financial Corp Beta Capital Corporation IT Distribution $1.21 - $3.41 2.82x -

6/5/2018 Private Investors Critical Control Energy Services Corp. Electronic Manufacturing Services $21.88 $0.97 $16.04 0.73x 16.59x

6/5/2018 Bertram Capital Management LLC Registrar Corp IT Consulting/Solutions Providers - - - - -

6/5/2018 Business Technology Partners, Inc. Secure Technology Integration Group IT Consulting/Solutions Providers - - - - -

6/5/2018 Business Technology Partners, Inc. PTS Consulting Group Ltd IT Consulting/Solutions Providers - - - - -

June 201814


Source: Capital IQ



6/5/2018 CloudCover LLC InfoGuard LLC IT Consulting/Solutions Providers - - - - -

6/4/2018 GreyCastle Security, LLC Eagle Dream Technologies LLC IT Distribution - - - - -

6/4/2018 Calian Group Ltd. Secure Technologies International Inc. IT Consulting/Solutions Providers $8.00 - - - -

6/4/2018 Fortinet, Inc. Bradford Networks, Inc. Network Hardware - - - - -

6/4/2018 Solid Caddgroup Inc. Autodesk Division of Le Groupe A&A's Electronic Manufacturing Services - - - - -

6/4/2018 JourneyTEAM, Inc. Soren Innovations LLC Electronic Manufacturing Services - - - - -

6/4/2018 Immedion, LLC Data Cave, Inc. Electronic Manufacturing Services - - - - -

6/4/2018 SKC Communication Products, LLC GBH Communications Inc. Semiconductors/Semi Equipment - - - - -

6/1/2018 Merchants Sa (pty) Ltd. Millennium Process Group Inc. IT Consulting/Solutions Providers - - - - -

6/1/2018 RJ Young Company, Inc. Paxis Technologies Network Hardware - - - - -

6/1/2018 TrueIT LLC Netrix Information Technologies, Inc. Electronic Manufacturing Services - - - - -

6/1/2018 Green House Data, Inc. Infront Consulting Group Inc. IT Consulting/Solutions Providers - - - - -

6/1/2018 ISSQUARED, Inc. Starnet Data Design, Inc. IT Consulting/Solutions Providers - - - - -

6/1/2018 Madison Dearborn Partners, LLC LinQuest Corporation IT Consulting/Solutions Providers - - - - -

5/31/2018 SHEA Solutions Inc. TGO Consulting Inc. IT Storage Hardware - - - - -

5/31/2018 SaaScend LLC Dashtab of Bitmatica LLC IT Consulting/Solutions Providers - - - - -

5/31/2018 Chirisa Investments Data Center Facility in Ashburn, VA IT Consulting/Solutions Providers - - - - -

5/29/2018 Reliam, Inc. G2 Technology Group Inc. IT Consulting/Solutions Providers - - - - -

5/29/2018 American Communications Solutions Ellumen, Inc. IT Consulting/Solutions Providers - - - - -

5/29/2018 Protel Communications, Inc. Tranquilnet, Inc. Electronic Manufacturing Services - - - - -

5/29/2018 AutoLab AI, Inc. Flextronics International USA, Inc. IT Consulting/Solutions Providers - - - - -

5/29/2018 SWK Technologies, Inc. Info Sys Management, Inc. IT Consulting/Solutions Providers - - $1.30 - -

5/23/2018 Converge Technology Partners Inc. Blue Chip Tek, Inc. Electronic Manufacturing Services - - - - -

5/23/2018 Konica Minolta Business Solutions Macprofessionals, Inc IT Consulting/Solutions Providers - - - - -

5/23/2018 Liberty Technology Advisors, Inc. SoftwareWerks, LLC IT Consulting/Solutions Providers - - - - -

5/22/2018 Rackspace Hosting, Inc. RelationEdge, LLC IT Distribution - - - - -

5/22/2018 Faye Business Systems Group, Inc. Sugar Practice of DataSync Corp IT Consulting/Solutions Providers - - - - -

5/21/2018 CGI Group Inc. Facilite Informatique Canada Inc Semiconductors/Semi Equipment - - - - -

5/21/2018 JMC Capital Partners LLC Source Code Corporation IT Consulting/Solutions Providers - - - - -

5/21/2018 Rosenthal Enterprises, Inc. Avantgarde Partners Inc IT Consulting/Solutions Providers - - - - -

June 201815


Source: Capital IQ



5/21/2018 nDivision Inc. 58 Managed Services Contracts IT Consulting/Solutions Providers - - - - -

5/21/2018 Molex, LLC BittWare, Inc. Network Hardware - - - - -

5/17/2018 American Computer Consultants, Inc. NetGain Technologies of Alabama LLC Semiconductors/Semi Equipment - - - - -

5/17/2018 Complete HealthCare Solutions, Inc. PDQ Billing Services IT Distribution - - - - -

5/16/2018 Presidio, Inc. Red Sky Solutions LLC IT Distribution - - - - -

5/16/2018 Quality Technology, Inc. Fusion PPT LLC IT Consulting/Solutions Providers - - - - -

5/16/2018 Private Investors WebTecs Inc. IT Consulting/Solutions Providers - - - - -

5/15/2018 Hawk Ridge Systems, LLC. Cimtronics Midwest Inc. IT Distribution - - - - -

5/14/2018 Total System Services, Inc. Central Payment Corporation IT Consulting/Solutions Providers - - $840.00 - -

5/14/2018 Javelin Technologies Inc. Cimetrix Solutions Inc. IT Consulting/Solutions Providers - - - - -

5/10/2018 Exelegent Big Byte Solutions LLC Electronic Manufacturing Services - - - - -

5/9/2018 YASH Technologies, Inc. C5mi IT Consulting/Solutions Providers - - - - -

5/9/2018 Remote DBA Experts, LLC CommitDBA Electronic Manufacturing Services - - - - -

5/8/2018 Semtech Corporation All Assets of IC Interconnect, Inc. IT Distribution - - $7.00 - -

5/7/2018 Tyros AG Next Gen Gifting Inc. IT Distribution - - $5.24 - -

5/3/2018 Tyler Technologies, Inc. Sage Data Security, LLC Electronic Manufacturing Services - - $11.50 - -

5/3/2018 Calligo Limited Mico Systems Inc. IT Distribution - - - - -

5/3/2018 FirePower Equity Inc. Interwork Technologies Inc. Electronic Manufacturing Services - - - - -

5/2/2018 CoreSite Realty Corporation US Colo, LLC IT Consulting/Solutions Providers - - $8.60 - -

5/2/2018 Unirac, Inc. Certain Assets of SolarHooks IT Consulting/Solutions Providers - - - - -

5/1/2018 i3D.net B.V. MyInternetServices, LLC Semiconductors/Semi Equipment - - - - -

4/30/2018 HAYSTACKID LLC Inspired Review LLC Electronic Manufacturing Services - - - - -

4/30/2018 Whoa Networks Inc. Platinum Systems, Inc. Electronic Manufacturing Services - - - - -

4/30/2018 Peraton Corporation Strategic Resources International, Inc. IT Consulting/Solutions Providers - - - - -

4/27/2018 Alaris USA Inc.; Accscient LLC Emergys, LLC IT Consulting/Solutions Providers - - - - -

4/26/2018 Examity, LLC B Virtual Inc. IT Consulting/Solutions Providers - - - - -

4/25/2018 eStruxture Data Centers Inc. Backbone Data Vault Inc. Electronic Manufacturing Services - - - - -

4/24/2018 Output Services Group, Inc. Paybox Corp. IT Consulting/Solutions Providers - - - - -

4/23/2018 Printfly Corporation Tonic Design Co. Electronic Manufacturing Services - - - - -

4/23/2018 Madison Dearborn Partners, LLC Remote DBA Experts, LLC IT Consulting/Solutions Providers - - - - -

June 201816


Source: Capital IQ



4/23/2018 Addressable Networks Inc. Lanlogic, Inc. IT Consulting/Solutions Providers - - - - -

4/20/2018 Private Investors Arbitech, LLC IT Consulting/Solutions Providers - - - - -

4/20/2018 Thrive CITS, LLC BizCompass, LLC IT Distribution - - - - -

4/20/2018 ISEC7 GmbH PaRaBaL, Inc. IT Consulting/Solutions Providers - - - - -

4/19/2018 Paysafe Group Limited iPayment Holdings, Inc. IT Consulting/Solutions Providers - - - - -

4/19/2018 Luminar Technologies, Inc. Black Forest Engineering, LLC IT Consulting/Solutions Providers - - - - -

4/19/2018 OEP Capital Advisors, L.P. ePAK International, Inc. IT Distribution - - - - -

4/18/2018 Operational Technology Integrators Ontai IT Distribution - - - - -

4/18/2018 CUNA Mutual AdvantEdge Analytics Finivation Software, Inc. Electronic Manufacturing Services - - - - -

4/17/2018 Reply S.p.A. Valorem Consulting Group, LLC IT Consulting/Solutions Providers - - - - -

4/16/2018 npm, Inc. &Yet, LLC Electronic Manufacturing Services - - - - -

4/16/2018 Private Investors SMART Global Holdings, Inc. IT Consulting/Solutions Providers $1,009.37 $146.18 - - -

4/16/2018 CIM Group, Inc. 340 Progress Circle IT Consulting/Solutions Providers - - - - -

4/12/2018 IES Communications, LLC Azimuth Communications Inc. Network Hardware $10.00 - - - -

4/12/2018 A&M Capital Advisors, LLC Client Network Services, Inc. IT Consulting/Solutions Providers - - - - -

4/12/2018 Foulk Consulting Services Inc StreamWeaver IT Consulting/Solutions Providers - - - - -

4/11/2018 ES Consulting, Inc. Information Technology and Training IT Consulting/Solutions Providers - - - - -

4/11/2018 Adaptive Corporation Noble Technologies Corporation IT Consulting/Solutions Providers - - - - -

4/11/2018 Steven Douglas Associates, Inc. Tallience, LLC Semiconductors/Semi Equipment - - - - -

4/10/2018 Novacoast, Inc. In-Tech Solutions Inc. Semiconductors/Semi Equipment - - - - -

4/10/2018 First International Bank & Trust InterceptEFT IT Consulting/Solutions Providers - - - - -

4/9/2018 Perficient, Inc. Southport Services Group, LLC IT Distribution $17.00 - $21.41 1.26x -

4/6/2018 Genatec Ottawa Inc. BMD Gestion Informatisee Inc IT Consulting/Solutions Providers - - - - -

4/4/2018 Hinduja Global Solutions UK limited Element Solutions LLC IT Consulting/Solutions Providers $8.40 - $8.77 1.04x -

4/4/2018 Blackstreet Capital Management, LLC Cartesian, Inc. Electronic Manufacturing Services $50.78 - $10.65 0.21x -

4/4/2018 Ensono, LP Wipro Data Centre and Cloud Services IT Consulting/Solutions Providers $241.00 - $405.00 1.68x -

4/3/2018 Ness Technologies Inc. Linium LLC IT Consulting/Solutions Providers - - - - -

4/3/2018 ENGIE North America Inc. SoCore Energy LLC Electronic Manufacturing Services - - - - -

4/3/2018 Microchip Technology Incorporated Microsemi Corporation IT Consulting/Solutions Providers $1,845.00 $555.30 $10,078.28 5.46x 18.15x

4/3/2018 General Dynamics Corporation CSRA Inc. Electronic Manufacturing Services $5,064.00 $841.30 $9,871.07 1.95x 11.73x

June 201817


Source: Capital IQ



4/2/2018 Silver Lake; P2 Capital Partners, LLC Blackhawk Network Holdings, Inc. Electronic Manufacturing Services $2,231.61 $189.08 $3,019.24 1.35x 15.97x

4/2/2018 SS&C Technologies Holdings, Inc. DST Systems, Inc. IT Consulting/Solutions Providers $2,218.20 $491.10 $5,671.07 $2.56 11.55x

4/2/2018 NTT Communications Corporation Secure-24, Inc. IT Consulting/Solutions Providers $93.00 - - - -

4/2/2018 KeyPoint Government Solutions, Inc. Perspecta Inc. IT Consulting/Solutions Providers $2,575.20 $422.40 - - -

4/2/2018 Aeronautics Ltd. Chassis Plans LLC IT Consulting/Solutions Providers $15.00 - $6.00 $0.40 -

4/1/2018 Beijing TitanUnion Technology LTD UNISKY Technology LTD IT Consulting/Solutions Providers - - - - -

High $5,064.00 $841.30 $10,078.28 9.32x 18.15x

Low $1.21 $0.97 $0.50 0.21x 11.55x

Mean $906.76 $378.05 $1,578.35 1.68x 14.80x

Median $50.78 $422.40 $10.65 1.31x 15.97x

June 201818

The information and views contained in this report were prepared by Dinan Capital Advisors, LLC. (“Dinan”). It is not a research report, assuch term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as anoffer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategyand is provided for informational purposes only. The information contained herein is believed by Dinan to be reliable, but Dinan makes norepresentation as to the accuracy or completeness of such information. Opinions, estimates and projections in this report constituteDinan’s judgment and are subject to change without notice. Also, past performance is not necessarily indicative of future results. Anyunauthorized reproduction of this information is strictly prohibited.

This report may contain references to registered trademarks, service marks and copyright 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 underwriterof, the securities, financial instruments or other investments discussed in this report, and shall not have any liability or responsibility forany statements made in the report or for any financial statements, financial projections or other financial information contained orattached as an exhibit to the report. For more information about the materials provided by such third parties, please contact us throughthe contact information provided on the following page.

Dinan Capital AdvisorsDisclaimer

June 201819

Dinan Capital Advisors

Dinan Capital Advisors delivers a highly tailored strategic approach for middle-market companies that seek to capitalize on mergerand acquisition transactions. Our services are comparable in scope to those employed by Wall Street investment banks for theworld's most profitable multinational corporations, while using methodologies, processes and cost-effective structures that makesense for middle-market companies.

Based on a highly structured process that leverages our experience, research capabilities, and proprietary technology platforms, weinitiate every engagement by first assessing the market climate, and then developing an understanding of the current situation andstrategic objectives of each company. From there, we partner with our clients to develop a plan that maximizes shareholder valueand delivers the optimal transaction outcome.

Dinan is the registered FINRA member broker-dealer division of the Dinan Group of Companies, responsible for executing thesecurities related transactions of the firm. The Dinan Group is a leading diversified financial services company with over 25 years ofadvisory and merchant banking experience dedicated to middle-market transactions.

For any query regarding this report, please contact:

Robert UllmanManaging Director

[email protected]

William DowningManaging Director

[email protected]

Michael ReisterSenior Analyst

[email protected]

Michael PucciAssociate Director

[email protected]

Michael HilcoveSenior Associate

[email protected]

robert ullman william downing north american managing … · 2019-05-15 · june 2018 north...

Documents