technology, media & telecom industry update july 2012 · 7/27/2012 · the global market for...

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Technology, Media & Telecom

Industry Update

July 2012

Table of Contents Technology, Media & Telecom

What We've Been Reading…………………………………………………………………………………………1

Bellwethers……………………………………………………………………………………………2

TMT Public Market Trading Statistics………………………………………………………………………..…………………..3

Recent TMT M&A Activity…………………………………………………………………………………………….4

Recent U.S. TMT Initial Public Offerings………………………………………………………………………….………………...………..5

Public and M&A Market Overview by Sector

Data and Information Services………………………………………………………………..…………..6

Financial Technology…………………………………………………………………………8

Internet & Digital Media……………………………………………………..…………………..10

IT and Tech-Enabled Services………………………………………………………………..13

Software – Application…………………………………………………….…………………..15

Software – Infrastructure……………………………………………………..…………………..18

Software – SaaS……………………………………………………………………………………………………..20

Tech Hardware……………………………………………………………………..…………………..22

Telecom………………………………………………………………………………………………..25

Selected HW&Co. TMT Transactions…………………………………………………………………………………………..28

TMT Group Overview and Disclosures…………………………………………………………………………………………..29

Note: All market data in the following materials is as of June 30, 2012.

As mobile application development evolves, the M2M market is increasingly turning to third-party vendors to

reduce development times, specifically as it relates to core features utilized across M2M applications. The market

for outsourced development in the M2M sector, through so called Application Enablement Platforms (“AEPs”), is

expected to grow from $169 million in 2011 to $1.7 billion by 2017. The market for AEP services remains nascent

and highly fragmented, resulting in opportunities for consolidation as large network infrastructure vendors seek to

integrate pure play AEP providers within their core M2M offering.

Read the full article here.

M2M Software Market Increases Outsourcing of Development Processes

MarketWatch 7/06/2012

Gartner‟s latest IT spending research projects global IT spending to reach $3.6 trillion this year amidst increased

expenditures for areas such as Software-as-a-Service, Platform-as-a-Service, and Infrastructure-as-a-Service.

Spending on these enterprise public cloud services is forecasted to grow at a 64% CAGR from 2012 to 2016. The

enterprise software segment is projected to grow by almost 7%, representing a $301 billion market in 2013.


Gartner Says Worldwide IT Spending on Pace to Surpass $3.6 Trillion in 2012

Business Wire 7/9/2012

What We‟ve Been Reading

Enterprise social software is expected to generate $4.5 billion in revenue by 2016, according to IDC‟s latest

research. Increasing usage of collaboration and communication tools among employees will drive the industry‟s

compound annual growth rate of 42.4% on 2011 revenue of $764.4 million. IDC predicts that top vendors such as

IBM and Jive Software will serve to benefit from these strong trends, although they are expected to face increased

competition as firms such as Microsoft, Google, Oracle and Salesforce.com seek to add enterprise social features to

their enterprise application stacks through both organic and acquisition-driven initiatives.


IDC Forecasts Strong Growth in Enterprise Social Software Spending

CIO 6/22/2012

1

Fueled by the „big data‟ movement and compliance, security, fraud detection, and risk management requirements,

the global market for business analytics software grew 14% in 2011. IDC, projects that between now and 2016 the

business analytics market will grow at a compound annual growth rate of approximately 10% reaching $10 billion

as companies become more aware of the potential benefits analytics can have on their entity. The analytics space is

controlled by major software companies, such as Oracle, SAP, or IBM, who may be eyeing unique solutions created

by smaller players in the market.


Analytics Software Market Will Remain Strong

Computerworld 7/11/2012

http://www.marketwatch.com/story/the-17-billion-m2m-software-market-sees-developers-increasingly-out-sourcing-core-functionality-says-abi-research-2012-07-06

http://www.businesswire.com/news/home/20120709006108/en/Gartner-Worldwide-Spending-Pace-Surpass-3.6-Trillion

http://www.cio.com/article/708989/IDC_Forecasts_Strong_Growth_in_Enterprise_Social_Software_Spending

http://www.computerworld.com/s/article/9229007/Analytics_software_market_will_remain_strong

Public Market Trading Statistics Bellwethers

Stock

Performance

Last Twelve Months Last 30 Days

Comparable

Trading

Summary

2

80%

90%

100%

110%

120%

130%

140%Ju

n-1

1

Jul-

11

Au

g-1

1

Sep

-11

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11

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v-1

1

Dec-1

1

Jan

-12

Feb

-12

Ma

r-1

2

Ap

r-1

2

Ma

y-1

2

Jun

-12

Nasdaq Bellwethers

80%

85%

90%

95%

100%

105%

110%

115%

120%

05

/30

/12

06

/01

/12

06

/03

/12

06

/05

/12

06

/07

/12

06

/09

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/12

06

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/12

06

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/12

06

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/12

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/12

06

/25

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06

/27

/12

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/29

/12

Nasdaq Bellwethers

($ in millions) Stock Price CY 2012P Multiples Summary LTM

Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P

Bellwethers

Apple Inc. 547,445.1$ 584.00$ 90.7% 33.0% 43.1% 2.9x 2.5x 7.7x 6.6x

Microsoft Corporation 256,448.1 30.59 92.8% 6.4% 7.8% 2.7x 2.6x 6.4x 6.1x

International Business Machines Corporation 222,961.2 195.58 92.8% 1.1% 3.1% 2.3x 2.2x 8.9x 8.7x

Google Inc. 189,702.2 580.07 86.5% 24.3% 37.7% 3.6x 3.3x 10.0x 8.0x

Oracle Corporation 145,010.4 29.70 87.0% 2.7% 36.2% 3.5x 3.5x 8.2x 6.3x

Samsung Electronics Co. Ltd. 137,177.8 1,051.33 84.7% 23.9% 51.2% 0.8x 0.7x 4.1x 3.1x

Intel Corporation 134,076.2 26.65 91.0% 5.6% 6.6% 2.3x 2.2x 5.3x 5.0x

Amazon.com Inc. 102,877.6 228.35 92.6% 32.0% 82.3% 1.8x 1.5x 49.4x 31.4x

QUALCOMM Inc. 94,842.5 55.68 80.8% 22.6% 26.0% 3.8x 3.5x 10.4x 8.4x

Cisco Systems, Inc. 91,977.6 17.17 80.6% 4.5% 22.3% 1.3x 1.3x 4.6x 4.0x

SAP AG 70,713.2 59.36 85.3% 11.8% 1.4% 3.7x 3.6x 10.0x 10.6x

eBay Inc. 54,137.0 42.01 95.6% 20.4% 36.8% 3.7x 3.4x 12.7x 10.5x

EMC Corporation 53,790.2 25.63 85.4% 10.9% 17.6% 2.2x 2.1x 9.0x 8.4x

Hewlett-Packard & Company 39,653.6 20.11 53.3% (0.6%) 5.8% 0.5x 0.5x 4.2x 3.7x

Total Comp Set Median 118,476.9$ 86.8% 11.4% 24.2% 2.5x 2.4x 8.6x 7.3x

0%

20%

40%

60%

80%

100%

120%

Data and

Information Services

Financial

Technology

Internet &

Digital Media

IT and

Tech-Enabled Services

Software –

Application

Software –

Infrastructure

Software –

SaaS

Technology

Hardware

Telecommunications

Comparable

Trading

Summary

Valuation

Summary

Current Valuation Versus Historical Five-Year Average

Five-Year Average

Note: Based on current TEV/LTM EBITDA versus five-year historical average.

Note: Public comparables exclude companies with market capitalization below $500 million.

TMT Public Market Trading Statistics by Vertical

3

LTM Revenue LTM EBITDA

Industry Segment 1 Month 12 Month Growth Margin LTM 2012P 2013P LTM 2012P 2013P

Bellwethers 1.1% 18.8% 9.7% 32.3% 2.5x 2.4x 2.1x 8.6x 7.3x 6.6x

Data and Information Services 2.0% 12.1% 9.0% 28.0% 2.7x 2.4x 2.3x 9.4x 8.4x 7.8x

Diversified Information Services 3.5% 19.7% 8.2% 28.5% 2.9x 2.8x 2.6x 9.3x 8.5x 8.0x

Lender/Mortgage/Real Estate Data and Processing 6.0% 23.8% 8.2% 18.0% 2.1x 2.1x 2.0x 9.0x 7.4x 7.0x

Market Data and Research (1.1%) (4.6%) 12.2% 16.9% 1.7x 1.6x 1.4x 9.7x 9.1x 7.7x

Financial Data and Media (2.8%) (4.0%) 6.9% 37.4% 3.8x 4.1x 3.8x 11.6x 9.5x 8.6x

Financial Technology 2.7% 17.9% 11.4% 25.8% 3.0x 2.9x 2.7x 10.6x 9.5x 8.8x

Financial Software and Solutions 3.8% 7.5% 13.1% 18.9% 3.7x 3.2x 3.0x 15.0x 11.5x 9.8x

Transaction and Payment Processing 2.0% 25.5% 11.2% 27.6% 2.4x 2.6x 2.5x 9.9x 8.7x 7.9x

Internet & Digital Media 1.7% (2.6% ) 26.7% 20.2% 2.4x 2.2x 2.0x 10.0x 8.3x 7.3x

Advertising & Marketing (2.5%) (4.0%) 57.8% 29.8% 4.4x 3.7x 3.1x 14.7x 12.0x 9.0x

Content & Services 5.3% (12.9%) 28.1% 14.4% 2.4x 2.3x 2.0x 11.9x 8.0x 8.1x

Content Delivery & Management (4.3%) (14.3%) 26.2% 23.0% 2.2x 1.9x 1.8x 9.4x 7.2x 6.3x

e-Commerce (1.5%) (1.5%) 29.5% 18.8% 2.6x 2.4x 2.0x 16.0x 10.4x 9.1x

Diversified Media 6.9% 16.2% 5.4% 22.7% 1.8x 1.7x 1.7x 7.4x 7.4x 6.8x

IT and Tech-Enabled Services 6.4% (1.1% ) 9.4% 15.9% 1.2x 1.2x 1.1x 9.1x 7.7x 6.9x

IT Services 9.6% (9.4%) 11.2% 11.0% 0.6x 0.5x 0.5x 7.0x 5.9x 5.4x

Government IT & BPO 11.6% (0.8%) 9.4% 10.1% 0.5x 0.5x 0.5x 11.2x 5.8x 5.8x

Onshore BPOs 4.1% 9.1% 4.1% 15.0% 0.8x 0.8x 0.8x 5.3x 6.4x 5.9x

Offshore BPOs 1.9% (1.4%) 17.3% 18.9% 2.3x 2.1x 1.8x 10.0x 10.5x 9.4x

Software – Application 4.8% 11.8% 16.0% 22.1% 3.5x 3.2x 2.8x 12.8x 10.1x 8.9x

Enterprise Software 6.1% 7.8% 15.9% 24.5% 3.3x 3.2x 3.0x 9.8x 9.2x 8.7x

Product Lifecycle Management/Technical Design 2.1% 14.6% 13.5% 22.0% 2.7x 2.6x 2.3x 11.7x 8.4x 7.9x

Customer Engagement/Call Center Management 2.1% 6.1% 12.2% 17.5% 2.3x 2.1x 1.9x 14.4x 8.5x 7.8x

Human Capital Management 12.0% 48.5% 24.0% 11.7% 8.8x 7.4x 5.9x 73.7x 34.4x 25.8x

Vertically Focused - Public Sector 3.1% (2.7%) 12.6% 18.3% 3.5x 3.1x 2.7x 15.4x 11.4x 9.1x

Vertically Focused - Healthcare IT 6.2% 13.7% 25.5% 27.0% 3.5x 3.2x 2.8x 14.5x 12.0x 10.3x

Software – Infrastructure 1.1% 0.2% 13.6% 22.4% 2.8x 2.7x 2.5x 10.1x 9.6x 9.2x

Enterprise IT Management 0.5% 0.0% 11.5% 22.7% 2.8x 2.6x 2.4x 11.2x 9.8x 13.2x

Security 0.4% 6.0% 11.4% 26.5% 5.3x 5.1x 4.6x 9.7x 8.6x 7.9x

Enterprise Storage 3.3% (6.2%) 22.2% 17.3% 3.4x 3.1x 2.5x 9.0x 12.0x 10.3x

Software – SaaS 5.1% 14.2% 29.7% 15.4% 6.6x 5.8x 4.8x 22.1x 15.7x 16.0x

Technology Hardware (0.3% ) (4.1% ) (0.5% ) 17.4% 1.1x 1.1x 1.0x 6.1x 5.5x 5.1x

Semiconductor Devices (1.9%) (10.3%) (1.4%) 19.2% 2.0x 2.1x 1.9x 9.5x 7.8x 6.7x

Semiconductor Equipment 1.4% (3.7%) (11.1%) 20.0% 1.4x 1.3x 1.2x 6.0x 6.1x 5.6x

Electronic Manufacturing (0.2%) (7.2%) (0.5%) 5.8% 0.3x 0.3x 0.2x 4.9x 4.4x 3.9x

PCs, Servers, and Computing Components 0.3% 8.4% 2.5% 12.9% 0.7x 0.7x 0.6x 5.9x 5.5x 5.1x

Storage and Networking Components 0.1% (10.7%) 12.7% 26.0% 0.8x 0.9x 0.8x 3.7x 4.1x 3.7x

Telecommunications 1.0% (9.0% ) 9.8% 22.5% 2.1x 1.9x 1.7x 9.3x 6.9x 6.2x

Network Optimization 3.3% (14.7%) 17.3% 22.7% 2.7x 2.4x 2.1x 12.9x 8.0x 7.0x

Fiber Optics 11.8% (3.6%) 0.4% 7.2% 1.3x 1.2x 1.1x 20.6x 14.8x 13.0x

Telecom/Networking Equipment (5.2%) (22.9%) 1.2% 14.5% 1.2x 1.2x 1.1x 7.5x 5.4x 4.9x

Carriers and Content Providers 3.8% (16.1%) 11.4% 26.2% 1.9x 1.9x 1.8x 6.1x 5.7x 5.4x

Infrastructure Services 7.1% 42.8% 11.8% 62.8% 13.4x 11.3x 10.6x 21.4x 18.0x 16.2x

Managed Services (1.9%) 37.1% 22.7% 40.4% 5.4x 4.5x 3.6x 14.3x 12.1x 10.2x

NASDAQ 2.2% 10.6%

Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple

Recent M&A

Statistics

Note: Includes announced domestic transactions over the last two months where enterprise value is more than $40 million.

Transaction Volume and Revenue Multiples Transaction Volume by Segment Summary

Statistics

Recent TMT M&A Activity

Note: Includes closed transactions over the last twelve months where enterprise value is publicly disclosed and more than $40 million. 4

2.9 x

2.3 x

3.2 x

1.5 x

3.0 x3.0 x

5.7 x

1.6 x 1.7 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

0

10

20

30

40

50

60

70

Data and Information

Services

Financial Technology

Internet & Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

Technology Hardware

Telecom

LT

M R

ev

en

ue M

ultip

leTra

nsa

cti

on

Volu

me

Data and Information

Services5%

Financial Technology

5%

Internet & Digital Media

20%

IT and Tech-Enabled Services

8%

Software –Application

18%

Software –Infrastructure

7%

Software –SaaS2%

Technology Hardware

19%

Telecom16%

Date Date Enterprise LTM Multiples Summary

Announced Closed Target Acquirer Value (mm) Revenue EBITDA

06/30/12 Pending Gaikai, Inc. Sony Computer Entertainment Inc. 380.0$ NA NA

06/26/12 06/26/12 Active Internet Technologies, LLC Spectrum Equity Investors 55.0 NA NA

06/26/12 Pending Space Systems/Loral, Inc. Macdonald Dettwiler & Associates Ltd. 875.0 0.8 x NA

06/25/12 Pending Yammer, Inc. Microsoft Corporation 1,200.0 NA NA

06/25/12 Pending Quest Software Inc. Dell Inc. 2,237.0 2.5 x 14.0 x

06/20/12 06/20/12 Wavelink Corporation LANDesk Software, Inc. 82.0 NA NA

06/20/12 Pending Federal Signal Technologies, LLC 3M Co. 110.0 1.0 x NA

06/19/12 Pending Link_A_Media Devices Corporation SK Hynix, Inc. 248.0 NA NA

06/18/12 Pending Network Equipment Technologies Inc. Sonus Networks, Inc. 42.4 0.8 x NA

06/18/12 Pending Network Engines, Inc. UNICOM Systems, Inc. 55.3 0.2 x 5.1 x

06/15/12 Pending Psion PLC Motorola Solutions, Inc. 158.7 0.6 x 14.3 x

06/12/12 06/12/12 SinglePlatform, Corp. Constant Contact, Inc. 95.0 NA NA

06/12/12 Pending GlobalSpec, Inc. IHS Inc. 135.0 NA NA

06/12/12 Pending Ramtron International Corp. Cypress Semiconductor Corporation 103.7 1.5 x 19.4 x

06/11/12 06/11/12 Vital Support Systems, L.L.C. TDS Hosted & Managed Services, LLC 45.0 0.6 x NA

06/11/12 Pending Paradigm B.V. Apax Partners Worldwide LLP; JMI Equity 1,000.0 NA NA

06/05/12 06/08/12 PlanetSoft, Inc. Ebix Inc. 40.0 NA NA

06/04/12 Pending FiberGate, Inc. Zayo Group Inc. 116.6 8.2 x 11.2 x

06/04/12 Pending Alaska Communications Wireless Assets General Communication Inc. 100.0 NA NA

06/02/12 Pending Q9 Networks Inc. Madison Dearborn Partners; Providence Equity 1,058.2 NA NA

06/01/12 Pending HUGHES Telematics, Inc. Verizon Enterprise Solutions Group 713.1 9.2 x NA

05/31/12 Pending Buddy Media, Inc. salesforce.com, inc 745.0 NA NA

05/29/12 Pending Esterel Technologies S.A. Ansys, Inc. 52.6 2.8 x NA

05/28/12 Pending Alaska Communications Systems Group Inc. Teledyne Technologies Inc. 291.7 1.5 x 8.9 x

05/25/12 Pending GlobalEnglish Corporation Pearson plc 90.0 2.1 x NA

05/24/12 06/12/12 PowerReviews, Inc. Bazaarvoice, Inc. 127.8 11.1 x NA

05/22/12 Pending Ariba Inc. SAP America, Inc. 4,411.4 8.8 x NM

05/22/12 Pending Wanova, Inc. VMware, Inc. 100.0 NA NA

05/21/12 05/21/12 BigHand Ltd. LDC Ltd.; Bridgepoint Development Capital 77.5 NA NA

05/21/12 Pending EDGAR Online Inc. R.R. Donnelley & Sons Company 71.2 2.3 x NA

05/16/12 Pending Ember Corporation Silicon Laboratories Inc. 72.0 NA NA

05/10/12 Pending Spectralink Corporation Sun Capital Partners, Inc. 114.0 1.2 x NA

05/04/12 06/04/12 Anue Systems, Inc. Ixia 145.0 3.0 x NA

05/03/12 05/03/12 Avista Solutions, Inc. Davis + Henderson Corporation 40.0 NA NA

05/03/12 Pending SlideShare Inc. LinkedIn Corporation 72.1 NA NA

05/02/12 07/12/12 Kewill plc Francisco Partners Management LLC 132.5 1.4 x 10.2 x

05/01/12 Pending Standard Microsystems Corp. Microchip Technology Inc. 762.5 1.9 x 12.9 x

05/01/12 Pending Funzio, Inc. GREE International, Inc. 210.0 NA NA

05/01/12 Pending EasyLink Services International Corporation Open Text Corp. 309.5 1.7 x 7.3 x

Median 116.6$ 1.7x 11.2x

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 YTD

($ in millions) IPO Details Financials at IPO (LTM) Trading Multiples

Gross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA

06/28/12 ServiceNow, Inc. 209.7$ 22.7% 36.7% 169.0$ NM 290.0% 17.4x NM

06/28/12 Exa Corporation 62.5 33.3% 6.1% 46.9 11.8% 16.3% 2.9x 24.4x

05/17/12 Facebook, Inc. 16,006.9 57.3% (18.2%) 4,038.0 52.8% 104.6% 15.7x 29.7x

05/09/12 Audience, Inc. 89.6 5.1% 13.4% 100.2 3.5% 109.2% 3.5x NM

04/24/12 Envivio, Inc. 69.8 16.2% (28.8%) 50.6 4.4% 68.8% 2.9x 66.0x

04/19/12 Proofpoint, Inc. 82.3 18.9% 30.4% 87.7 NM 35.3% 7.2x NM

04/19/12 Infoblox Inc. 120.0 23.4% 43.3% 151.9 NM 48.7% 6.6x NM

04/18/12 Splunk, Inc. 229.5 7.4% 65.3% 121.0 NM 82.6% 22.3x NM

03/28/12 Millennial Media Inc. 132.6 9.8% 1.5% 103.7 NM 116.8% 9.5x NM

03/27/12 Vocera Communications, Inc. 93.6 14.5% 67.4% 79.5 1.5% 40.0% 7.4x NM

03/21/12 ExactTarget, Inc. 161.5 0.0% 15.1% 207.5 NM 54.5% 6.7x NM

03/21/12 Vantiv, Inc. 500.0 0.0% 37.0% 1,622.4 26.9% 39.6% 3.1x 11.6x

03/14/12 M/A-Com Technology Solutions Holdings 114.0 7.4% (2.6%) 308.4 18.6% 18.5% 3.2x 17.3x

03/14/12 Demandware, Inc. 88.0 0.0% 48.1% 56.5 3.8% 54.1% 13.5x NM

03/01/12 Yelp, Inc. 107.3 0.7% 51.5% 83.3 NM 74.5% 16.4x NM

02/23/12 Bazaarvoice, Inc. 113.8 5.1% 51.7% 94.0 NM 143.2% 11.5x NM

02/17/12 Brightcove, Inc. 55.0 0.0% 39.2% 63.6 NM 45.4% 6.4x NM

02/09/12 Synacor, Inc. 34.1 20.0% 174.0% 91.1 7.4% 37.5% 4.3x 58.1x

02/01/12 Greenway Medical Technologies, Inc. 66.7 19.2% 63.1% 105.8 5.2% 63.6% 5.6x NM

02/01/12 AVG Technologies N.V. 128.0 50.0% (18.7%) 272.4 30.7% 25.4% 3.9x 12.6x

Median 110.5$ 12.2% 36.8% 102.0$ 7.4% 54.3% 6.6x 24.4x

Recent IPO

Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last six months.

Number of Transactions by Tier Percentage of Transactions by Tier

Tier by Market Capitalization on IPO Pricing Date

$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +

Recent U.S. TMT Initial Public Offerings

Note: Includes major U.S. exchanges and transactions for companies located in the U.S.

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 2012 YTD

Stock

Performance

Public Market Trading Statistics Data and Information Services

Comparable

Trading

Summary


6




Diversified Information Services

Thomson Reuters Corporation 23,512.8$ 28.40$ 79.7% (5.8%) 5.8% 2.2x 2.3x 9.1x 8.3x

Experian plc 13,969.2 14.12 89.6% NA NA 3.6x 3.3x 10.7x 9.7x

Reed Elsevier plc 9,768.5 8.02 76.2% NA NA NA 0.8x NA 2.7x

Verisk Analytics, Inc. 8,180.4 49.26 99.2% 13.1% 16.9% 6.8x 6.2x 15.5x 13.7x

IHS Inc. 7,087.0 107.73 99.9% 17.4% 85.3% 5.3x 4.9x 26.0x 15.3x

Alliance Data Systems Corporation 6,797.9 135.00 99.6% 12.0% 24.4% 4.0x 3.8x 13.2x 11.7x

Equifax Inc. 5,582.7 46.60 97.0% 9.1% 11.5% 3.1x 3.0x 9.5x 9.0x

Wolters Kluwer NV 4,702.2 15.88 79.9% 5.0% 4.7% 1.7x 1.7x 6.9x 7.0x

Informa plc 3,583.8 5.96 83.8% 2.7% 3.9% 2.4x 2.3x 8.7x 8.3x

UBM plc 2,241.7 9.17 90.8% 3.7% 5.8% 2.0x 1.9x 9.1x 8.5x

NeuStar, Inc. 2,218.1 33.40 86.3% 32.7% 47.7% 3.5x 3.1x 8.4x 6.7x

Fair Isaac Corporation 1,449.5 42.28 94.0% 1.8% 3.2% 2.7x 2.8x 9.5x 9.4x

Acxiom Corporation 1,140.5 15.11 99.8% (4.7%) (5.9%) 1.1x 1.1x 5.1x 5.3x

Median 5,582.7$ 90.8% 5.0% 5.8% 2.9x 2.8x 9.3x 8.5x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Information Services, Inc. 10,046.9$ 34.08$ 99.8% 4.0% 7.8% 2.5x 2.4x 8.5x 8.1x

Lender Processing Services, Inc. 2,136.5 25.28 93.1% (3.4%) 16.9% 1.5x 1.6x 8.6x 6.7x

CoStar Group Inc. 2,290.3 81.20 97.7% 37.1% 47.7% 8.3x 6.8x 49.3x 31.8x

CoreLogic, Inc. 1,928.7 18.31 98.0% 8.8% 108.8% 1.7x 1.7x 9.4x 6.5x

Median 2,213.4$ 97.8% 6.4% 32.3% 2.1x 2.1x 9.0x 7.4x

Market Data and Research

Gartner Inc. 4,015.7$ 43.05$ 95.7% 10.8% 28.9% 2.7x 2.5x 16.9x 13.4x

Aegis Group plc 2,908.4 2.53 85.8% 14.2% 27.0% 1.7x 1.5x 9.3x 7.2x

Ipsos SA 1,332.4 29.42 68.3% 32.2% 10.8% 1.2x 0.9x 8.8x 8.4x

Forrester Research Inc. 765.6 33.86 85.1% 10.0% 15.5% 1.8x 1.7x 10.1x 9.8x

Median 2,120.4$ 85.5% 12.5% 21.3% 1.7x 1.6x 9.7x 9.1x

Financial Data and Media

Moody's Corporation 8,125.1$ 36.55$ 84.9% 10.6% 9.2% 3.6x 3.4x 8.5x 8.1x

FactSet Research Systems Inc. 4,133.2 92.94 85.1% 9.6% 11.5% 4.9x 4.7x 13.2x 12.4x

MSCI Inc. 4,135.0 34.02 87.2% 6.8% 6.3% 5.2x 4.9x 11.6x 10.9x

Dun & Bradstreet Corporation 3,406.5 71.17 82.3% (3.8%) 7.2% 2.4x 2.4x 8.0x 7.3x

Morningstar Inc. 2,859.3 57.84 90.4% NA NA 3.8x NA 13.1x NA

Median 4,133.2$ 85.1% 8.2% 8.2% 3.8x 4.1x 11.6x 9.5x

Total Data and Information Median 3,799.8$ 90.0% 9.1% 11.5% 2.7x 2.4x 9.4x 8.4x

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Nasdaq Data and Information Services

2.7x 2.7x2.2x

3.7x

2.5x2.7x 2.8x 2.8x

2.0x2.3x

2.8x

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4.0x

5.0x

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7.0x

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Transaction Volume Median LTM Revenue Multiple

Recent M&A

Activity

Comparable Transactions Data and Information Services

Summary

Statistics

M&A Transaction Volume and Revenue Multiples

Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.

Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.

7

Date Date Enterprise LTM Multiples


06/26/12 06/26/12 Active Internet Technologies, LLC Spectrum Equity Investors 55.0$ NA NA


06/12/12 07/09/12 GlobalSpec, Inc. IHS Inc. 135.0 NA NA

05/21/12 Pending EDGAR Online Inc. R.R. Donnelley & Sons Company 71.2 2.3 x NA

05/01/12 07/02/12 EasyLink Services International Corporation Open Text Corp. 309.5 1.7 x 7.3 x

04/23/12 06/06/12 Thomson Reuters, Health Care Business Veritas Capital 1,250.0 NA NA

04/02/12 04/10/12 LogLogic, Inc. TIBCO Software Inc. 130.0 NA NA

03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 340.6 7.5 x 25.2 x

02/23/12 06/25/12 GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. 717.0 3.2 x 11.6 x

01/05/12 01/05/12 Miyowa Inc. Synchronoss Technologies, Inc. 59.0 4.6 x NA

Median 222.2$ 3.2x 11.6x

Stock

Performance

Public Market Trading Statistics Financial Technology

Comparable

Trading

Summary


8




Financial Software and Solutions 1,853.8$ -$ 0.9$ 0.1$ 0.2$ 3.7$ 3.2$ 15.0$ 11.5$

Intuit Inc. 17,429.3$ 59.35$ 95.2% 8.0% 18.3% 3.9x 3.7x 11.5x 10.0x

Jack Henry & Associates Inc. 3,013.9 34.52 97.6% 6.4% 6.9% 3.0x 2.9x 9.4x 9.0x

Broadridge Financial Solutions Inc. 2,656.5 21.27 85.3% 5.0% 13.4% 1.3x 1.3x 7.6x 6.9x

SS&C Technologies Holdings, Inc. 1,950.0 25.00 98.9% 52.4% 28.7% 5.3x 3.5x 14.4x 11.4x

ACI Worldwide, Inc. 1,757.7 44.21 99.4% 51.2% 57.3% 3.7x 2.8x 20.1x 12.4x

Advent Software, Inc. 1,373.4 27.11 91.8% 11.7% 75.9% 3.8x 3.5x 19.6x 11.5x

Financial Engines, Inc. 986.8 21.45 81.7% 26.7% 94.1% 5.5x 4.6x 30.9x 17.2x

Bottomline Technologies Inc. 663.3 18.05 60.4% 12.4% (1.3%) 2.5x 2.3x 15.7x 15.9x

Median 1,853.8$ 93.5% 12.1% 23.5% 3.7x 3.2x 15.0x 11.5x

Transaction and Payment Processing 7,190.8$ -$ 1.0$ 0.1$ 0.1$ 2.4$ 2.6$ 9.9$ 8.7$

Visa, Inc. 82,736.0$ 123.63$ 98.6% 10.8% 10.8% 7.7x 7.4x 12.1x 11.6x

Mastercard Inc. 54,357.5 430.11 92.1% 13.2% 15.5% 7.0x 6.4x 12.6x 11.5x

Automatic Data Processing, Inc. 27,222.5 55.66 97.5% 6.8% 6.1% 2.4x 2.3x 10.8x 10.9x

Paychex, Inc. 11,394.3 31.41 96.0% 5.5% 4.6% 4.8x 4.6x 11.1x 11.0x

Fidelity National Information Services, Inc. 10,046.9 34.08 99.8% 4.0% 7.8% 2.5x 2.4x 8.5x 8.1x

Fiserv, Inc. 9,856.8 72.22 99.9% 4.8% 11.0% 3.0x 2.9x 9.8x 9.0x

Total System Services, Inc. 4,524.7 23.93 99.8% 2.2% 18.3% 2.3x 2.3x 9.0x 8.1x

Global Payments Inc. 3,396.1 43.23 80.2% 11.5% 7.4% 1.6x 1.5x 8.4x 6.8x

Vantiv, Inc. 3,007.3 23.29 95.3% (38.0%) 11.2% 2.3x 3.9x 8.7x 8.2x

Wright Express Corporation 2,398.6 61.72 93.2% 9.3% 17.6% 4.7x 4.4x 10.0x 9.1x

Heartland Payment Systems, Inc. 1,166.1 30.08 88.5% (73.0%) 34.6% 0.6x 2.2x 10.4x 8.4x

Euronet Worldwide Inc. 866.3 17.07 75.9% 9.5% 14.0% 0.8x 0.8x 7.1x 6.3x

Median 7,190.8$ 95.7% 6.1% 11.1% 2.4x 2.6x 9.9x 8.7x

Total Financial Technology Median 3,010.6$ 95.3% 8.6% 13.7% 3.0x 2.9x 10.6x 9.5x

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Nasdaq Financial Technology



05/21/12 Pending EDGAR Online Inc. R.R. Donnelley & Sons Company 67.3$ 2.1x NA

05/03/12 05/03/12 Avista Solutions, Inc. Davis + Henderson Corporation 40.0 NA NA

03/26/12 Pending ClairMail, Inc. Monitise plc 174.4 10.0 x NA

03/06/12 Pending GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. 717.0 3.2x 11.4x

02/28/12 Pending Thomson Reuters, Portia Business SS&C Technologies Holdings, Inc. 170.0 NA NA

02/07/12 06/01/12 Misys plc Vista Equity Partners 2,042.2 3.2x 16.1x

01/13/12 Pending Buckaroo B.V. Intrum Justitia AB 50.7 NA NA

Median 170.0$ 3.2x 13.8x

Recent M&A

Activity

Comparable Transactions Financial Technology

Summary

Statistics




9

4.7x

1.0x

1.8x

3.9x

3.2x3.4x

3.1x

1.7x2.0x

3.4x3.2x

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Comparable

Trading

Summary

Public Market Trading Statistics Internet & Digital Media

Stock

Performance


10




Advertising & Marketing 1,838.7$ -$ 0.7$ 0.3$ 0.4$ 4.4$ 3.7$ 14.7$ 12.0$

Google Inc. 189,702.2$ 580.07$ 86.5% 24.3% 37.7% 3.6x 3.3x 10.0x 8.0x

Baidu, Inc. 40,173.9 114.98 69.3% 56.1% 50.9% 13.1x 10.7x 22.8x 18.9x

Yahoo! Inc. 19,356.9 15.83 94.3% (9.5%) 22.1% 2.4x 2.7x 9.3x 7.3x

Groupon, Inc. 6,864.8 10.63 34.1% 49.4% NM 3.0x 2.4x NM 15.6x

Yandex N.V. 6,201.7 19.05 45.3% 52.1% 51.9% 7.3x 5.8x 17.0x 13.0x

Bankrate, Inc. 1,838.7 18.39 70.9% 25.6% 27.4% 4.4x 3.7x 14.7x 11.9x

ExactTarget, Inc. 1,440.7 21.86 73.2% 31.1% NM 5.4x 4.5x NM NM

ValueClick, Inc. 1,321.7 16.39 75.0% 24.3% 34.7% 2.2x 1.9x 7.8x 6.1x

Bazaarvoice, Inc. 1,108.0 18.20 86.3% 43.6% NM 9.3x 7.3x NM NM

Millennial Media Inc. 1,003.6 13.19 47.3% 69.0% NM 9.3x 6.1x NM NM

Constant Contact, Inc. 515.7 17.86 55.5% 18.2% 64.6% 1.9x 1.7x 18.2x 12.0x

Median 1,838.7$ 70.9% 31.1% 37.7% 4.4x 3.7x 14.7x 12.0x

Content & Services 1,281.5$ -$ 0.6$ 0.2$ 0.3$ 2.4$ 2.3$ 11.9$ 8.0$

Facebook, Inc. 66,483.8$ 31.10$ 69.1% 33.2% 27.7% 13.2x 11.5x 54.4x 21.5x

LinkedIn Corporation 10,977.8 106.27 88.1% 73.8% 188.7% 16.8x 11.4x NM 56.5x

VeriSign, Inc. 6,883.5 43.57 99.0% 13.8% 29.8% 7.5x 7.0x 13.7x 11.8x

Zynga, Inc. 4,007.4 5.44 34.2% 24.9% NM 1.9x 1.7x NM 5.7x

Netflix, Inc. 3,803.3 68.49 22.5% 13.1% (68.4%) 1.0x 0.9x 14.9x 25.0x

IAC/InterActiveCorporation 3,994.6 45.60 86.4% 27.9% 65.5% 1.3x 1.2x 8.6x 6.5x

AOL Inc. 2,636.7 28.08 99.0% (5.5%) (2.0%) 0.6x 0.6x 2.9x 3.7x

Pandora Media, Inc. 1,808.5 10.87 41.8% 54.8% NM 5.7x 4.1x NM NM

Yelp, Inc. 1,389.7 22.73 71.1% 57.3% NM 13.4x 9.6x NM NM

Ancestry.com Inc. 1,173.2 27.53 60.9% 16.6% 20.4% 2.5x 2.4x 7.8x 6.8x

WebMD Health Corp. 1,017.3 20.51 41.7% (10.1%) (21.0%) 1.3x 1.3x 10.3x 6.6x

Zillow, Inc. 1,113.4 38.63 64.4% 69.0% 237.1% 13.1x 9.1x NM 49.2x

Monster Worldwide, Inc. 1,007.7 8.31 54.3% (5.1%) 16.0% 0.9x 1.0x 6.7x 6.0x

Angie's List, Inc. 914.9 15.84 79.9% 68.3% NM 7.2x 5.6x NM NM

The Active Network, Inc. 900.3 15.39 65.3% 25.7% 158.7% 2.3x 1.9x 81.1x 16.0x

Demand Media, Inc. 871.7 11.20 80.6% 11.4% 64.9% 2.3x 2.1x 13.5x 8.0x

Dice Holdings, Inc. 583.4 9.39 63.4% 10.3% 10.3% 2.9x 2.7x 7.1x 6.7x

comScore, Inc. 579.9 16.46 58.3% 19.6% 460.9% 2.3x 2.0x 37.2x 9.3x

Median 1,281.5$ 64.8% 22.3% 28.8% 2.4x 2.3x 11.9x 8.0x

Content Delivery & Management

Akamai Technologies, Inc. 5,651.5$ 31.75$ 81.1% 16.5% 16.4% 3.7x 3.4x 9.2x 8.0x

Level 3 Communications, Inc. 4,789.2 22.15 55.3% 49.7% 71.0% 2.2x 1.9x 11.1x 8.4x

Rovi Corporation 2,104.8 19.62 33.1% 10.8% 54.4% 3.6x 3.4x 10.9x 7.1x

Mentor Graphics Corporation 1,646.0 15.00 95.2% 8.2% 40.9% 1.7x 1.6x 9.4x 7.2x

EarthLink Inc. 789.1 7.43 86.5% 2.7% (7.3%) 0.8x 0.9x 3.6x 4.0x

Median 2,104.8$ 81.1% 10.8% 40.9% 2.2x 1.9x 9.4x 7.2x

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Nasdaq Internet & Digital Media

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Nasdaq Internet & Digital Media

Public Market Trading Statistics Internet & Digital Media


Comparable

Trading

Summary

(continued)

11




e-Commerce

Amazon.com Inc. 102,877.6$ 228.35$ 92.6% 32.0% 82.3% 1.8x 1.5x 49.4x 31.4x

eBay Inc. 54,137.0 42.01 95.6% 20.4% 36.8% 3.7x 3.4x 12.7x 10.5x

priceline.com Inc. 33,088.4 664.52 85.7% 25.7% 39.6% 6.8x 5.7x 20.1x 15.3x

Rakuten, Inc. 13,546.7 10.31 86.9% 19.6% 33.0% 2.5x 2.1x 11.3x 8.7x

Expedia Inc. 6,109.0 48.07 73.1% 10.4% 14.8% 1.3x 1.3x 7.1x 6.5x

Mercadolibre, Inc. 3,346.3 75.80 72.5% 29.3% 28.0% 9.9x 8.2x 28.0x 23.1x

Ctrip.com International Ltd. 2,410.3 16.76 35.3% 20.8% (0.8%) 2.6x 2.4x 10.2x 8.7x

HomeAway, Inc. 1,787.0 21.74 47.5% 22.9% 100.3% 6.1x 5.5x 33.9x 19.2x

Live Nation Entertainment, Inc. 1,715.5 9.18 73.8% 3.4% 2.9% 0.5x 0.4x 5.6x 5.5x

Liquidity Services, Inc. 1,597.3 51.18 76.9% 35.7% 81.1% 3.9x 3.2x 20.3x 14.1x

Vistaprint N.V. 1,194.9 32.30 64.6% 23.5% 2.4% 1.3x 1.2x 11.9x 10.0x

Shutterfly, Inc. 1,103.6 30.69 47.6% 23.2% 104.3% 1.9x 1.7x 19.3x 10.3x

OpenTable, Inc. 1,015.8 45.01 49.5% 16.1% 60.4% 6.6x 5.9x 22.1x 14.2x

Demandware, Inc. 688.5 23.69 74.1% 30.7% NM 9.6x 7.9x NM NM

Digital River Inc. 613.4 16.62 48.7% 1.9% 38.4% 0.4x 0.4x 2.9x 2.0x

Median 1,787.0$ 73.1% 22.9% 37.6% 2.6x 2.4x 16.0x 10.4x

Diversified Media

Walt Disney Company 86,687.2$ 48.50$ 99.1% 5.6% 13.3% 2.4x 2.3x 9.6x 8.7x

Comcast Corporation 86,196.6 31.97 99.9% 10.7% 6.1% 2.2x 2.1x 6.7x 6.5x

News Corporation 52,943.5 22.29 98.1% 1.6% 6.4% 1.6x 1.6x 8.0x 7.6x

Time Warner Inc. 36,956.8 38.50 98.1% 1.6% (0.4%) 1.8x 1.8x 7.4x 7.4x

Viacom, Inc. 24,818.1 47.02 89.3% (3.2%) (6.6%) 2.1x 2.2x 7.4x 8.3x

CBS Corporation 21,246.1 32.78 93.7% 6.0% 13.2% 1.8x 1.7x 7.9x 7.5x

Liberty Interactive Corporation 9,791.3 17.78 89.8% 4.8% 8.2% 1.3x 1.3x 7.1x 6.7x

Scripps Networks Interactive, Inc. 8,640.5 56.86 98.5% 10.5% 8.0% 4.4x 4.1x 9.4x 8.8x

Gannett Co., Inc. 3,460.9 14.73 90.6% 0.6% 6.8% 1.0x 1.0x 5.2x 4.6x

Meredith Corporation 1,431.9 31.94 91.3% 8.1% 15.8% 1.3x 1.2x 8.2x 6.4x

The New York Times Company 1,154.7 7.80 80.2% (10.9%) (10.2%) 0.6x 0.7x 4.1x 4.6x

Median 21,246.1$ 93.7% 4.8% 6.8% 1.8x 1.7x 7.4x 7.4x

Total Internet & Digital Media Median 2,257.6$ 73.9% 19.6% 27.7% 2.4x 2.2x 10.0x 8.3x



06/30/12 Pending Gaikai, Inc. Sony Computer Entertainment Inc. 380.0$ NA NA

06/26/12 06/26/12 Active Internet Technologies, LLC Spectrum Equity Investors 55.0 NA NA


06/12/12 Pending GlobalSpec, Inc. IHS Inc. 135.0 NA NA



05/25/12 Pending GlobalEnglish Corporation Pearson plc 90.0 2.1x NA

05/24/12 06/12/12 PowerReviews, Inc. Bazaarvoice, Inc. 127.8 11.1x NA

05/21/12 Pending EDGAR Online Inc. R.R. Donnelley & Sons Company 71.2 2.3x NA

05/03/12 Pending SlideShare Inc. LinkedIn Corporation 72.1 NA NA


05/01/12 07/02/12 EasyLink Services International Corporation Open Text Corp. 309.5 1.7x 7.3x

04/27/12 05/18/12 Demandforce, Inc. Intuit Inc. 423.5 NA NA

04/25/12 Pending Archives.com Ancestry.com Inc. 100.0 NA NA

04/09/12 Pending Instagram, Inc. Facebook, Inc. 1,000.0 NA NA

03/31/12 04/04/12 Totaljobs Group Limited StepStone Deutschland GmbH 173.3 NA NA

03/21/12 03/21/12 OMGPOP, Inc. Zynga, Inc. 182.8 NA NA

03/19/12 05/01/12 Kiva Systems, Inc. Amazon.com Inc. 775.0 NA NA

03/16/12 03/16/12 Social Hour Inc. PlayPhone, Inc. 51.5 NA NA

02/16/12 02/16/12 Mobile Theory, Inc. Opera Software ASA 50.0 NA NA

01/23/12 02/29/12 Allrecipes.com, Inc. Meredith Corp. 175.0 NA NA

01/05/12 01/05/12 Miyowa Inc. Synchronoss Technologies, Inc. 59.0 4.6x NA

Median 154.1$ 2.3x 7.3x

Recent M&A

Activity

Comparable Transactions Internet & Digital Media

Summary

Statistics




12

4.5x

3.0x

2.1x

4.0x

2.7x

3.2x3.5x

2.4x2.6x

2.9x

4.6x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

0

25

50

75

100

125

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Comparable

Trading

Summary

Public Market Trading Statistics IT and Tech-Enabled Services

Stock

Performance



13




IT Services

Accenture plc 38,145.2$ 60.09$ 91.2% 5.3% 5.6% 1.2x 1.2x 7.5x 7.4x

Atos S.A. 5,856.3 59.73 96.0% 28.4% 30.7% 0.7x 0.5x 6.4x 5.2x

Cap Gemini S.A. 5,648.9 36.76 70.6% 3.8% 8.6% 0.4x 0.4x 4.6x 4.4x

Logica PLC 2,682.2 1.66 77.9% (1.5%) 16.0% 0.5x 0.5x 7.7x 6.6x

Sapient Corporation 1,420.9 10.07 62.0% 12.0% 12.8% 1.2x 1.1x 9.3x 8.2x

Tieto Oyj 1,143.8 15.95 80.4% 0.6% (0.6%) 0.5x 0.5x 5.1x 5.1x

Unisys Corporation 856.7 19.55 71.3% (0.8%) 19.4% 0.1x 0.1x 1.1x 1.0x

EPAM Systems, Inc. 718.6 16.99 71.9% 26.0% 23.0% 1.7x 1.4x 9.1x 7.7x

Median 2,051.6$ 74.9% 4.6% 14.4% 0.6x 0.5x 7.0x 5.9x

Government IT & BPO

SAIC, Inc. 4,139.9$ 12.12$ 72.1% 3.0% 110.0% 0.5x 0.4x 11.5x 5.2x

MAXIMUS, Inc. 1,756.8 51.75 99.7% 15.3% 11.1% 1.6x 1.4x 11.2x 9.9x

CACI International Inc. 1,465.2 55.02 82.7% 0.4% (0.6%) 0.5x 0.5x 5.6x 5.8x

Tyler Technologies, Inc. 1,222.5 40.35 97.0% 17.1% 26.3% 3.9x 3.6x 21.1x 17.8x

ManTech International Corporation 865.2 23.44 50.7% 1.5% (13.1%) 0.3x 0.3x 3.3x 3.8x

Median 1,465.2$ 82.7% 3.0% 11.1% 0.5x 0.5x 11.2x 5.8x

Onshore BPOs

Alliance Data Systems Corporation 6,797.9$ 135.00$ 99.6% 12.0% 24.4% 4.0x 3.8x 13.2x 11.7x

CGI Group, Inc. 6,185.7 23.99 97.8% 2.7% 12.0% 1.6x 1.6x 9.1x 8.0x

Computer Sciences Corporation 3,854.6 24.82 64.6% (1.6%) (3.7%) 0.3x 0.4x 4.1x 3.6x

DST Systems Inc. 2,384.2 54.31 95.9% (7.1%) 10.5% 0.8x 0.8x 5.0x 4.5x

Convergys Corporation 1,723.3 14.77 99.7% (11.8%) (15.1%) 0.6x 0.7x 5.3x 6.4x

Median 3,854.6$ 97.8% (1.6% ) 10.5% 0.8x 0.8x 5.3x 6.4x

Offshore BPOs

Tata Consultancy Services Ltd. 44,951.9$ 22.97$ 98.7% 24.6% 20.5% 4.5x 4.2x 15.2x 14.5x

Infosys Technologies Ltd. 25,707.0 44.99 82.9% 2.7% 0.8% 3.1x 3.1x 9.7x 10.2x

Cognizant Technology Solutions 18,269.4 60.00 76.9% 20.0% 19.2% 2.4x 2.1x 11.9x 10.5x

Wipro Ltd. 17,547.8 7.18 88.2% 19.4% 19.7% 2.3x 2.1x 12.3x 11.0x

HCL Technologies Ltd. 5,935.1 8.56 91.0% 20.6% 37.7% 1.5x 1.4x 9.5x 8.1x

Genpact Ltd. 3,706.4 16.63 91.6% 18.0% 11.4% 2.1x 1.9x 11.8x 11.1x

Syntel, Inc. 2,538.8 60.70 95.6% 15.5% 4.5% 3.2x 2.9x 9.8x 11.7x

Satyam Computer Services Limited 1,659.7 1.41 83.3% 16.8% 32.0% 0.9x 0.8x 5.2x 4.8x

Exlservice Holdings, Inc. 786.2 24.64 85.4% 23.7% 27.0% 1.8x 1.6x 10.0x 8.4x

Median 5,935.1$ 88.2% 19.4% 19.7% 2.3x 2.1x 10.0x 10.5x

Total IT Services Median 2,682.2$ 85.4% 12.0% 12.8% 1.2x 1.2x 9.1x 7.7x

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06/11/12 06/11/12 Vital Support Systems, L.L.C. TDS Hosted & Managed Services, LLC 45.0$ 0.6 x NA

03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6 6.0 x 15.8 x

03/08/12 Pending GFI Solutions Group, Inc. Private Equity Consortia 111.0 1.3 x NA

02/22/12 Pending Roundarch, Inc. Isobar North America, Inc. 485.0 NA NA

02/22/12 Pending Sygnity Spolka Akcyjna Asseco Poland SA 87.9 0.5 x 12.0 x

02/21/12 Pending ATS Corporation Salient Federal Solutions, Inc. 76.4 0.8 x 7.6 x

Median 99.5$ 0.8x 12.0x

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Summary

Statistics




14

Public Market Trading Statistics Software – Application

Stock

Performance


Comparable

Trading

Summary

15

70%

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Nasdaq Application Software




Enterprise Software 3,845.0$ -$ 0.9$ 0.1$ 0.3$ 3.3$ 3.2$ 9.8$ 9.2$

Oracle Corporation 145,010.4$ 29.70$ 87.0% 2.7% 36.2% 3.5x 3.5x 8.2x 6.3x

SAP AG 70,713.2 59.36 85.3% 11.8% 1.4% 3.7x 3.6x 10.0x 10.6x

salesforce.com, inc 19,079.9 138.26 83.9% 33.1% 436.6% 7.3x 5.9x NM 31.4x

Adobe Systems Inc. 15,918.4 32.37 93.1% 6.2% 29.4% 3.3x 3.2x 9.7x 7.6x

Sage Group plc 5,436.1 4.35 88.5% 3.1% 2.3% 2.5x 2.4x 8.5x 8.3x

Informatica Corporation 4,585.7 42.36 67.9% 14.6% 55.7% 5.0x 4.5x 22.3x 14.5x

NetSuite Inc. 3,845.0 54.77 99.9% 27.0% NM 13.7x 12.3x NM NM

Open Text Corporation 2,912.0 49.90 69.0% 7.1% 18.0% 2.5x 2.4x 9.3x 8.0x

MicroStrategy Inc. 1,407.7 129.86 72.7% 14.3% 140.2% 2.0x 1.9x 43.5x 19.4x

Jive Software, Inc. 1,296.9 20.99 74.6% 46.5% NM 13.1x 10.0x NM NM

JDA Software Group Inc. 1,263.3 29.69 85.2% 5.1% 16.0% 1.9x 1.8x 7.6x 6.6x

Manhattan Associates, Inc. 915.3 45.71 89.6% 12.7% 33.8% 2.3x 2.2x 10.4x 9.2x

Deltek, Inc 743.2 11.59 99.6% 7.5% 97.5% 2.5x 2.4x 17.1x 10.1x

Median 3,845.0$ 85.3% 11.8% 33.8% 3.3x 3.2x 9.8x 9.2x

Product Lifecycle Management/Engineering

Dassault Systemes SA 11,576.0$ 93.71$ 96.3% 11.0% 14.6% 4.1x 4.0x 12.9x 12.7x

Autodesk, Inc. 8,040.7 34.99 82.0% 9.9% 48.6% 2.7x 2.6x 12.7x 8.9x

Ansys, Inc. 5,878.5 63.11 91.0% 16.9% 33.8% 7.6x 6.7x 15.8x 12.2x

Synopsys Inc. 4,328.9 29.43 94.8% 11.8% 41.2% 2.3x 2.1x 10.2x 7.4x

Cadence Design Systems Inc. 3,018.3 10.99 87.2% 12.4% 73.9% 2.2x 2.1x 10.4x 7.4x

Parametric Technology Corporation 2,502.7 20.96 72.4% 5.6% 45.8% 1.9x 1.9x 10.7x 7.9x

Aspen Technology, Inc. 2,166.2 23.15 98.4% 16.2% NM 8.7x 7.8x NM NM

Aveva Group plc 1,736.9 25.57 90.5% 13.8% 23.2% 4.6x 4.3x 15.2x 13.1x

Mentor Graphics Corporation 1,646.0 15.00 95.2% 8.2% 40.9% 1.7x 1.6x 9.4x 7.2x

Median 3,018.3$ 91.0% 11.8% 41.0% 2.7x 2.6x 11.7x 8.4x

Customer Engagement/Call Center Management

Nuance Communications, Inc. 7,304.2$ 23.82$ 76.5% 33.1% 160.1% 5.3x 4.2x 24.0x 10.4x

Amdocs Limited 5,014.3 29.72 91.8% 3.0% 13.5% 1.3x 1.2x 6.9x 6.1x

NICE Systems Ltd. 2,358.2 36.27 94.5% 18.4% 67.3% 2.3x 2.0x 14.8x 8.9x

Comverse Technology Inc. 1,273.8 5.82 74.6% 3.3% 96.1% 0.9x 0.9x 10.4x 5.6x

Verint Systems Inc. 1,155.1 29.51 77.7% 11.2% 72.5% 2.3x 2.1x 14.0x 8.0x

LivePerson Inc. 1,048.9 19.06 99.0% 21.7% 45.0% 6.7x 5.8x 35.1x 23.8x

Median 1,816.0$ 84.7% 14.8% 69.9% 2.3x 2.1x 14.4x 8.5x

Comparable

Trading

Summary

(continued)


Public Market Trading Statistics Software – Application

16

Human Capital Management

Concur Technologies, Inc. 3,729.8$ 68.10$ 98.3% 26.4% 159.1% 8.8x 7.4x 64.7x 31.6x

The Ultimate Software Group, Inc. 2,368.1 88.93 97.3% 23.2% 132.5% 8.2x 7.0x 82.7x 37.2x

Cornerstone OnDemand, Inc. 1,185.1 23.81 100.0% 57.6% NM 13.6x 9.6x NM NM

Median 2,368.1$ 98.3% 26.4% 145.8% 8.8x 7.4x 73.7x 34.4x

Vertically Focused - Public Sector

Tyler Technologies, Inc. 1,222.5$ 40.35$ 97.0% 17.1% 26.3% 3.9x 3.6x 21.1x 17.8x

Blackbaud Inc. 1,125.9 25.67 75.5% 15.4% 32.0% 2.8x 2.5x 15.8x 11.4x

K12, Inc. 834.6 23.30 63.0% 25.7% 57.9% 1.1x 1.0x 11.9x 8.1x

NIC Inc. 818.6 12.70 87.7% 14.2% 6.5% 4.0x 3.6x 15.4x 15.1x

Higher One Holdings, Inc. 691.6 12.22 56.8% 16.5% 23.6% 3.5x 3.1x 9.9x 8.2x

Median 834.6$ 75.5% 16.5% 26.3% 3.5x 3.1x 15.4x 11.4x

Vertically Focused - Healthcare IT

Cerner Corporation 14,090.0$ 82.66$ 93.6% 21.2% 40.9% 5.3x 4.9x 19.6x 15.4x

HMS Holdings Corp. 2,863.4 33.31 95.2% 39.7% 59.0% 7.4x 6.1x 23.7x 18.0x

athenahealth, Inc. 2,850.0 79.17 90.8% 32.3% 76.4% 7.1x 6.3x 53.4x 31.4x

Allscripts Healthcare Solutions, Inc. 2,086.0 10.93 50.5% 4.2% 37.6% 1.5x 1.5x 9.1x 6.4x

Quality Systems Inc. 1,632.5 27.51 54.3% 17.2% 10.9% 3.3x 3.1x 12.4x 10.4x

MedAssets, Inc. 784.4 13.45 92.2% 5.2% 16.2% 2.9x 2.9x 9.7x 8.9x

Computer Programs & Systems Inc. 633.0 57.22 72.4% 11.6% 16.0% 3.5x 3.2x 14.5x 12.0x

Median 2,086.0$ 90.8% 17.2% 37.6% 3.5x 3.2x 14.5x 12.0x

Total Application Software Median 2,358.2$ 88.5% 14.2% 40.9% 3.5x 3.2x 12.8x 10.1x






06/25/12 Pending Quest Software Inc. Dell Inc. 2,237.0$ 2.5x 14.0x

06/11/12 Pending Paradigm B.V. Apax Partners Worldwide LLP; JMI Equity 1,000.0 6.0x NA

06/05/12 06/08/12 PlanetSoft, Inc. Ebix Inc. 40.0 NA NA

05/22/12 Pending Ariba Inc. SAP America, Inc. 4,411.4 8.8x NM


05/21/12 05/21/12 BigHand Ltd. LDC Ltd.; Bridgepoint Development Capital 77.5 NA NA

05/02/12 07/12/12 Kewill plc Francisco Partners Management LLC 150.1 2.6x 11.5x


04/26/12 Pending Gemcom Software International, Inc. Dassault Systemes SA 360.0 6.6x NA

04/26/12 Pending Torex Retail Holdings Limited MICROS Systems, Inc. 263.1 NA NA

04/09/12 Pending eResearchTechnology, Inc. Genstar Capital, LLC 376.7 2.0x 9.2x


03/24/12 Pending ClairMail, Inc. Monitise plc 174.4 NA NA

03/22/12 Pending Convergys, Information Management NetCracker Technology Corporation 449.0 NA NA

03/15/12 Pending NDS Group Ltd. Scientific-Atlanta, LLC 4,964.8 5.0x 17.5x

03/06/12 04/25/12 Transcend Services, Inc. Nuance Communications, Inc. 318.1 2.5x 12.2x

02/29/12 02/29/12 BDGB Enterprise Software (LUX), S.C.A. Lexmark International Technology 148.0 NA NA

02/28/12 Pending eScreen, Inc. Alere Inc. 340.0 2.8x NA

02/24/12 02/24/12 iContact Corporation Vocus Inc. 178.7 NA NA

02/08/12 04/05/12 Taleo Corporation Oracle Corporation 1,805.5 5.7x 60.9x

02/07/12 Pending Temenos Group AG Misys plc 1,565.8 3.7x 7.6x

02/07/12 Pending IBS AG Siemens Beteiligungen Inland GmbH 43.9 1.3x 11.2x

02/07/12 02/21/12 CaseCentral, Inc. Guidance Software, Inc. 54.0 NA NA

02/01/12 04/11/12 CDC Software Corporation Vista Equity Partners; Vista Equity Fund 4 264.8 1.2x 12.1x

01/27/12 02/14/12 Numara Software, Inc. BMC Software Inc. 300.0 NA NA

01/23/12 01/23/12 Autologic Diagnostics Ltd. ISIS Equity Partners LLP; Foresight Group 71.7 3.2x NA

01/16/12 Pending Convio, Inc. Blackbaud Inc. 274.4 3.4x 37.8x

01/12/12 01/31/12 Compliance 360, Inc. SAI Global Limited 42.3 NA NA

01/09/12 01/13/12 LiveOffice LLC Symantec Corporation 115.0 NA NA

01/07/12 01/31/12 2nd Story Software, Inc. InfoSpace, Inc. 287.5 3.7x NA

Median 263.9$ 3.3x 12.1x

Recent M&A

Activity

Comparable Transactions Software – Application

Summary

Statistics




17

2.1x2.2x

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Trading

Summary

Public Market Trading Statistics Software – Infrastructure

Stock

Performance



18




Enterprise IT Management

Microsoft Corporation 256,448.1$ 30.59$ 92.8% 6.4% 7.8% 2.7x 2.6x 6.4x 6.1x

Hewlett-Packard Company 39,653.6 20.11 53.3% (0.6%) 5.8% 0.5x 0.5x 4.2x 3.7x

VMware, Inc. 38,898.1 91.04 76.6% 22.0% 71.1% 8.1x 7.4x 31.5x 20.6x

Citrix Systems, Inc. 15,628.9 83.94 95.4% 15.7% 40.3% 5.8x 5.5x 23.5x 17.0x

CA Technologies 12,795.9 27.09 96.8% 2.4% 6.9% 2.4x 2.4x 6.5x 6.2x

Red Hat, Inc. 10,902.1 56.48 90.0% 17.9% 49.4% 8.1x 7.5x 36.7x 26.6x

BMC Software Inc. 6,792.9 42.68 75.5% 4.0% 33.5% 2.8x 2.7x 8.9x 6.2x

TIBCO Software Inc. 4,849.6 29.92 86.3% 15.2% 48.6% 4.8x 4.5x 21.1x 15.0x

Splunk, Inc. 2,717.1 28.10 74.8% 46.6% NM 17.8x 13.8x NM NM

Compuware Corporation 2,018.2 9.30 90.1% 4.5% 18.4% 2.0x 1.9x 11.2x 9.4x

Progress Software Corporation 1,322.3 20.87 79.4% (10.0%) (27.5%) 1.9x 2.0x 10.1x 9.8x

Pegasystems Inc. 1,248.8 32.98 69.4% 18.0% 104.7% 2.7x 2.4x 42.2x 20.9x

Median 8,847.5$ 82.9% 10.8% 33.5% 2.8x 2.6x 11.2x 9.8x

Security

Symantec Corporation 10,530.1$ 14.61$ 73.1% 0.9% 12.6% 1.4x 1.4x 5.3x 4.6x

Check Point Software Technologies Ltd. 10,156.0 49.59 76.3% 10.3% 16.3% 5.3x 5.1x 9.4x 8.6x

VeriSign, Inc. 6,883.5 43.57 99.0% 13.8% 29.8% 7.5x 7.0x 13.7x 11.8x

Trend Micro Inc. 3,849.8 29.26 81.0% (0.6%) (4.0%) 1.9x 1.8x 5.6x 5.4x

Fortinet Inc. 3,653.0 23.22 80.6% 21.4% 42.2% 6.2x 5.7x 29.7x 22.0x

Sourcefire, Inc. 1,512.8 51.40 86.2% 27.8% 239.1% 7.4x 6.3x 86.4x 31.6x

Websense, Inc. 697.0 18.73 67.3% 1.0% 24.1% 1.9x 1.9x 9.7x 8.0x

Median 3,849.8$ 80.6% 10.3% 24.1% 5.3x 5.1x 9.7x 8.6x

Enterprise Storage

EMC Corporation 53,790.2$ 25.63$ 85.4% 10.9% 17.6% 2.2x 2.1x 9.0x 8.4x

Teradata Corporation 12,148.1 72.01 90.1% 14.9% 40.1% 4.6x 4.2x 20.2x 15.7x

NetApp, Inc. 11,677.9 31.82 58.6% 6.0% 28.3% 1.2x 1.2x 8.0x 6.3x

Brocade Communications Systems, Inc. 2,218.8 4.93 72.0% 2.8% 20.8% 1.1x 1.1x 5.5x 4.6x

CommVault Systems, Inc. 2,225.2 49.57 89.3% 20.2% 70.7% 4.7x 4.2x 35.8x 21.6x

Fusion-io, Inc. 1,948.7 20.89 50.0% 37.6% 42.3% 5.1x 4.0x NM 40.3x

Median 6,951.6$ 78.7% 12.9% 34.2% 3.4x 3.1x 9.0x 12.0x

Total Infrastructure Software Median 6,792.9$ 80.6% 10.9% 29.1% 2.8x 2.7x 10.1x 9.6x

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Summary

Statistics




19



06/25/12 Pending Quest Software Inc. Dell Inc. 2,244.1$ 2.5 x 14.0 x


05/29/12 Pending Esterel Technologies S.A. Ansys, Inc. 52.6 2.8 x NA


04/20/12 04/23/12 MU Dynamics, Inc. Spirent Communications Plc. 40.0 NA NA

04/02/12 05/25/12 Wyse Technology, Inc. Dell Inc. 1,000.0 2.9 x NA


03/13/12 05/09/12 SonicWALL, Inc. Dell Inc. 1,200.0 4.6 x NA

01/25/12 02/22/12 NovaTech LLC The Weir Group PLC 180.0 NA NA

Median 130.0$ 2.8 x 14.0 x

Public Market Trading Statistics Software – SaaS

Comparable

Trading

Summary

Stock

Performance



20

( $ in millions) Stock Price CY 2012P Multiples Summary LTM



SaaS

salesforce.com, inc 19,079.9$ 138.26$ 83.9% 33.1% 436.6% 7.3x 5.9x NM 31.4x

NetSuite Inc. 3,845.0 54.77 99.9% 27.0% NM 13.7x 12.3x NM NM

Concur Technologies, Inc. 3,729.8 68.10 98.3% 26.4% 159.1% 8.8x 7.4x 64.7x 31.6x

athenahealth, Inc. 2,837.8 79.17 90.8% 32.3% 76.4% 7.1x 6.2x 53.2x 31.3x

The Ultimate Software Group, Inc. 2,368.1 88.93 97.3% 23.2% 132.5% 8.2x 7.0x 82.7x 37.2x

Qlik Technologies, Inc. 1,888.1 22.12 62.1% 28.7% 166.5% 4.9x 4.1x 75.2x 27.7x

ExactTarget, Inc. 1,440.7 21.86 73.2% 31.1% NM 5.4x 4.5x NM NM

Jive Software, Inc. 1,296.9 20.99 74.6% 46.5% NM 13.1x 10.0x NM NM

DealerTrack Holdings, Inc. 1,277.9 30.11 94.2% 7.6% 77.2% 2.8x 2.7x 18.4x 10.9x

Cornerstone OnDemand, Inc. 1,185.1 23.81 100.0% 57.6% NM 13.6x 9.6x NM NM

Blackbaud Inc. 1,125.9 25.67 75.5% 15.4% 32.0% 2.8x 2.5x 15.8x 11.4x

LivePerson Inc. 1,048.9 19.06 99.0% 21.7% 45.0% 6.7x 5.8x 35.1x 23.8x

OpenTable, Inc. 1,015.8 45.01 49.5% 16.1% 60.4% 6.6x 5.9x 22.1x 14.2x

Financial Engines, Inc. 986.8 21.45 81.7% 26.7% 94.1% 5.5x 4.6x 30.9x 17.2x

MedAssets, Inc. 784.4 13.45 92.2% 5.2% 16.2% 2.9x 2.9x 9.7x 8.9x

Ebix Inc. 727.6 19.95 74.2% 12.1% 11.7% 4.3x 3.9x 9.8x 9.0x

Websense, Inc. 697.0 18.73 67.3% 1.0% 24.1% 1.9x 1.9x 9.7x 8.0x

Demandware, Inc. 688.5 23.69 74.1% 30.7% NM 9.6x 7.9x NM NM

Constant Contact, Inc. 515.7 17.86 55.5% 18.2% 64.6% 1.9x 1.7x 18.2x 12.0x

Total SaaS Median 1,185.1$ 81.7% 26.4% 70.5% 6.6x 5.8x 22.1x 15.7x

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Nasdaq SaaS

Recent M&A

Activity

Comparable Transactions Software – SaaS

Summary

Statistics




21

2.6x

3.8x

2.3x

3.1x2.5x

3.8x

4.4x

2.5x

3.7x4.2x

7.3x

0.0x

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06/26/12 06/26/12 Active Internet Technologies, LLC Spectrum Equity Investors 55.0$ NA NA




05/25/12 Pending GlobalEnglish Corporation Pearson plc 90.0 NA NA

05/22/12 Pending Ariba Inc. SAP America, Inc. 4,411.4 8.8 x NM

04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5 NA NA

03/27/12 03/30/12 MSDSonline Inc. ICG Group, Inc. 48.1 NA NA

02/08/12 04/05/12 Taleo Corporation Oracle Corporation 1,805.5 5.7 x 60.9 x

02/07/12 02/21/12 CaseCentral, Inc. Guidance Software, Inc. 54.0 NA NA

01/27/12 02/03/12 Numara Software, Inc. BMC Software Inc. 300.0 NA NA

01/12/12 01/31/12 Compliance 360, Inc. SAI Global Limited 42.3 NA NA

01/09/12 01/13/12 LiveOffice LLC Symantec Corporation 115.0 NA NA

Median 115.0$ 7.3x 60.9x

Comparable

Trading

Summary

Public Market Trading Statistics Tech Hardware

Stock

Performance


22




Semiconductor Devices

Intel Corporation 134,076.2$ 26.65$ 91.0% 5.6% 6.6% 2.3x 2.2x 5.3x 5.0x

Texas Instruments Inc. 32,831.5 28.69 83.8% (0.9%) (14.3%) 2.6x 2.6x 8.5x 9.0x

Broadcom Corporation 18,871.8 33.76 85.1% 12.7% 13.3% 2.4x 2.2x 15.8x 14.3x

Analog Devices, Inc. 11,238.4 37.67 92.3% (3.4%) (7.7%) 3.0x 3.0x 8.1x 8.1x

Maxim Integrated Products Inc. 7,492.1 25.64 85.5% 0.3% (1.1%) 2.8x 2.8x 8.7x 8.3x

Marvell Technology Group Ltd. 6,355.2 11.28 66.9% 4.8% 2.4% 1.2x 1.2x 6.0x 5.4x

Micron Technology Inc. 6,420.6 6.31 68.9% 0.7% (24.2%) 0.9x 0.8x 4.2x 4.0x

Advanced Micro Devices, Inc. 4,018.7 5.73 68.6% 3.9% 3.2% 0.7x 0.6x 48.1x 5.3x

LSI Corporation 3,623.9 6.37 69.2% 28.8% 112.5% 1.4x 1.1x 10.2x 4.9x

Cree Inc. 2,968.2 25.67 68.8% 22.5% 19.2% 2.1x 1.8x 11.9x 9.5x

Freescale Semiconductor Holdings I, Ltd. 2,543.3 10.25 48.9% (9.5%) (18.8%) 2.0x 2.0x 24.0x 9.4x

Cypress Semiconductor Corporation 2,002.4 13.22 56.3% (13.8%) 11.4% 2.0x 2.3x 13.7x 9.5x

Fairchild Semiconductor International Inc. 1,794.7 14.10 79.4% (4.6%) (17.8%) 1.1x 1.1x 6.3x 6.4x

Microsemi Corporation 1,642.8 18.49 82.9% 17.2% 43.8% 2.5x 2.2x 10.9x 7.5x

Semtech Corporation 1,594.6 24.32 79.8% 22.9% 37.5% 3.7x 3.0x 15.2x 11.4x

PMC-Sierra Inc. 1,430.5 6.14 78.6% (10.8%) 6.7% 1.6x 1.7x 8.7x 6.6x

Median 3,821.3$ 79.0% 2.3% 4.9% 2.0x 2.1x 9.5x 7.8x

Semiconductor Equipment

Applied Materials Inc. 14,669.2$ 11.45$ 82.1% (3.1%) (4.9%) 1.4x 1.4x 6.7x 6.2x

KLA-Tencor Corporation 8,240.9 49.25 88.9% 5.7% 4.3% 2.0x 1.9x 5.8x 5.3x

Lam Research Corporation 7,693.8 37.74 81.6% 26.2% 16.8% 2.2x 1.6x 17.0x 8.5x

Novellus Systems, Inc. 2,624.6 14.06 78.1% 28.5% 40.2% 1.4x 1.1x 5.9x 4.0x

Teradyne Inc. 1,516.2 28.86 82.5% (5.8%) (25.4%) 1.2x 1.2x 6.1x 6.1x

MKS Instruments Inc. 797.6 15.37 74.9% (10.2%) (76.8%) 1.4x 1.4x 5.8x 14.0x

Cabot Microelectronics Corporation 795.5 4.88 72.0% 2.9% 9.7% 0.6x 0.6x 3.6x 3.0x

Amkor Technology, Inc. 675.8 29.21 55.0% 1.5% 1.5% 1.6x 1.6x 7.9x 7.1x

Tessera Technologies Inc. 657.0 20.57 82.1% 8.9% 12.0% 1.4x 1.2x 7.6x 6.4x

ATMI Inc. 597.4 9.44 74.6% (7.3%) (14.6%) 0.6x 0.6x 5.9x 5.4x

Median 1,156.9$ 79.8% 2.2% 2.9% 1.4x 1.3x 6.0x 6.1x

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Nasdaq Tech Hardware

Comparable

Trading

Summary

(continued)

Public Market Trading Statistics Tech Hardware


23

Electronic Manufacturing

Molex Inc. 4,222.0$ 23.94$ 84.1% (1.1%) (5.2%) 1.1x 1.1x 5.8x 6.0x

Jabil Circuit Inc. 4,177.4 20.33 74.2% 2.9% 16.1% 0.3x 0.3x 4.9x 4.4x

Flextronics International Ltd. 4,124.3 6.20 82.8% (14.1%) 20.2% 0.2x 0.2x 4.9x 3.9x

Celestica Inc. 1,516.0 7.25 72.1% (3.9%) 10.4% 0.1x 0.1x 3.1x 2.7x

Plexus Corp. 986.5 28.20 73.2% 11.8% 15.7% 0.4x 0.4x 6.7x 5.9x

Benchmark Electronics Inc. 804.3 13.95 73.9% 10.3% 36.2% 0.2x 0.2x 5.5x 4.5x

TTM Technologies Inc. 768.7 9.39 55.3% (3.6%) (5.0%) 0.8x 0.8x 5.3x 5.1x

Sanmina-SCI Corp. 667.5 8.19 65.3% (5.3%) (9.0%) 0.2x 0.2x 4.2x 4.2x

Multi-Fineline Electronix Inc. 585.2 24.64 85.9% 4.1% 13.4% 0.5x 0.5x 4.8x 4.3x

Median 986.5$ 73.9% (1.1% ) 13.4% 0.3x 0.3x 4.9x 4.4x

PCs, Servers, and Computing Components

Apple Inc. 547,445.1$ 584.00$ 90.7% 33.0% 43.1% 2.9x 2.5x 7.7x 6.6x

IBM Corporation 222,961.2 195.58 92.8% 1.1% 3.1% 2.3x 2.2x 8.9x 8.7x

Samsung Electronics Co. Ltd. 137,177.8 1,051.33 84.7% 23.9% 51.2% 0.8x 0.7x 4.1x 3.1x

Hewlett-Packard Company 39,653.6 20.11 53.3% (0.6%) 5.8% 0.5x 0.5x 4.2x 3.7x

Dell Inc. 21,966.4 12.51 68.1% (3.2%) (4.0%) 0.2x 0.2x 2.7x 2.6x

Xerox Corporation 10,287.7 7.87 72.7% 0.9% 2.7% 0.8x 0.8x 5.7x 5.5x

Lenovo Group Ltd. 8,668.8 0.84 84.8% 27.8% 58.3% 0.2x 0.1x 5.7x 4.2x

NCR Corporation 3,616.3 22.73 95.1% 8.7% 139.2% 0.7x 0.7x 10.1x 5.5x

Pitney Bowes Inc. 2,997.2 14.97 63.8% (2.2%) (0.1%) 1.2x 1.2x 6.1x 6.0x

Diebold, Inc. 2,324.9 36.91 86.0% 7.8% 18.0% 0.8x 0.8x 8.1x 7.7x

Lexmark International Inc. 1,872.2 26.58 69.3% (4.2%) (4.2%) 0.4x 0.4x 2.5x 2.4x

ScanSource, Inc. 845.0 30.64 76.6% 9.0% 5.9% 0.3x 0.3x 6.8x 6.2x

Median 9,478.2$ 80.6% 4.4% 5.9% 0.7x 0.7x 5.9x 5.5x

Storage and Networking Components

SanDisk Corporation 8,888.8$ 36.48$ 68.2% (12.3%) (50.9%) 0.8x 0.9x 2.7x 5.0x

Western Digital Corporation 7,925.6 30.48 68.6% 77.6% 148.9% 0.6x 0.4x 2.4x 1.7x

QLogic Corporation 1,311.8 13.69 72.1% (8.4%) 5.9% 1.4x 1.4x 4.8x 4.4x

Emulex Corporation 624.9 7.20 64.3% 6.9% 237.1% 0.9x 0.8x 8.9x 3.7x

Median 4,618.7$ 68.4% (0.8% ) 77.4% 0.8x 0.9x 3.7x 4.1x

Total Tech Hardware Median 2,997.2$ 74.9% 1.5% 5.9% 1.1x 1.1x 6.1x 5.5x






06/20/12 Pending Federal Signal Technologies, LLC 3M Co. 110.0$ 1.0 x NA

06/19/12 Pending Link_A_Media Devices Corporation SK Hynix, Inc. 248.0 NA NA

06/15/12 Pending Psion PLC Motorola Solutions, Inc. 158.7 0.6 x 14.3 x

06/12/12 Pending Ramtron International Corp. Cypress Semiconductor Corporation 103.7 1.5 x 19.4 x

05/28/12 Pending LeCroy Corp. Teledyne Technologies Inc. 291.7 1.5 x 8.9 x

05/16/12 07/03/12 Ember Corporation Silicon Laboratories Inc. 72.0 NA NA

05/01/12 Pending Standard Microsystems Corp. Microchip Technology Inc. 762.5 1.9 x 12.9 x

04/30/12 Pending PLX Technology Inc. Integrated Device Technology, Inc. 306.6 2.7 x NA

04/24/12 05/02/12 Cray Inc., Interconnect Hardware Assets Intel Corporation 140.0 NA NA

04/20/12 Pending Kawasaki Microelectronics, Inc. Megachips Corp. 104.2 NA NA

04/17/12 Pending IBM, Point-of-Sale Business Toshiba Tec Corporation 842.3 NM NA

04/16/12 Pending SRS Labs, Inc. DTS Inc. 113.2 3.4 x 50.7 x

04/13/12 Pending Objet Ltd. Stratasys Inc. 600.2 4.5 x 25.3 x

04/10/12 05/14/12 X-Rite, Incorporated Danaher Corp. 625.6 2.6 x 11.4 x

04/09/12 06/04/12 Elo TouchSystems, Inc. The Gores Group LLC 380.0 0.9 x NA

04/03/12 05/31/12 DDI Corp. Viasystems Group, Inc. 267.8 1.0 x 7.5 x

03/26/12 05/15/12 Comverge, Inc. Bayside Capital, Inc.; H.I.G. Bayside 50.9 0.4 x NA

03/22/12 03/22/12 Coolsand Holding Co., Ltd. RDA Microelectronics, Inc. 45.3 NA NA

03/21/12 04/05/12 BroadLight, Inc. Broadcom Corp. 213.0 NA NA

03/16/12 05/02/12 NEXX Systems, Inc. Tokyo Electron Ltd. 248.9 3.9 x 36.0 x

02/22/12 02/28/12 Nidec Sankyo, Actuator Division OPTIS Co., Ltd. 84.6 NA NA

02/15/12 05/01/12 SmartSynch, Inc. Itron, Inc. 100.0 NA NA

01/23/12 03/20/12 Gennum Corporation Semtech Canada Inc. 479.9 3.5 x 15.4 x

01/22/12 01/23/12 Vaughn Energy, LLC DHS Services Pty Ltd. 100.0 2.6 x NA

01/18/12 01/18/12 Maxim Integrated Products Inc., Certain Assets Microsemi Corporation 44.0 NA NA

01/05/12 02/07/12 Picochip Ltd. Mindspeed Technologies Inc. 76.8 NA NA

Median 149.3$ 1.9x 14.8x

Recent M&A

Activity

Comparable Transactions Tech Hardware

Summary

Statistics


Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.

Note: Includes announced transactions over the last five months where enterprise value is publicly available and more than $40 million.

24

2.5x

1.4x

1.8x1.6x

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Public Market Trading Statistics Telecom

Comparable

Trading

Summary

Stock

Performance


25




Network Optimization

F5 Networks, Inc. 7,866.5$ 99.56$ 71.4% 21.0% 50.7% 5.1x 4.6x 15.2x 11.4x

Akamai Technologies, Inc. 5,651.5 31.75 81.1% 16.5% 16.4% 3.7x 3.4x 9.2x 8.0x

Riverbed Technology, Inc. 2,560.2 16.15 38.6% 13.6% 106.1% 2.6x 2.4x 16.6x 8.0x

Aruba Networks, Inc. 1,688.6 15.05 48.0% 20.4% 648.2% 2.8x 2.5x 56.7x 10.8x

NetScout Systems, Inc. 900.5 21.59 96.0% 13.6% 35.9% 2.2x 2.1x 9.4x 7.8x

Ixia 856.2 12.02 80.8% 23.9% 69.8% 2.3x 2.0x 10.6x 7.1x

Median 2,124.4$ 76.1% 18.4% 60.2% 2.7x 2.4x 12.9x 8.0x

Fiber Optics

CIENA Corporation 1,623.2$ 16.37$ 87.2% 12.0% 111.9% 1.4x 1.3x 28.0x 20.3x

Finisar Corporation 1,369.0 14.96 63.7% (0.0%) 23.7% 1.2x 1.2x 13.1x 9.3x

Infinera Corporation 758.1 6.84 76.3% 8.9% NM 1.3x 1.2x NM NM

Median 1,369.0$ 76.3% 8.9% 67.8% 1.3x 1.2x 20.6x 14.8x

Telecom/Networking Equipment

QUALCOMM Incorporated 94,842.5$ 55.68$ 80.8% 22.6% 26.0% 3.8x 3.5x 10.4x 8.4x

Cisco Systems, Inc. 91,977.6 17.17 80.6% 4.5% 22.3% 1.3x 1.3x 4.6x 4.0x

Ericsson 29,322.2 9.12 67.2% 1.6% (9.3%) 0.7x 0.7x 5.9x 5.3x

Amphenol Corporation 8,897.8 54.92 88.8% 6.4% 6.1% 2.4x 2.3x 10.9x 10.4x

Juniper Networks, Inc. 8,636.9 16.31 49.3% (0.9%) 4.0% 1.2x 1.2x 8.7x 6.2x

Nokia Corporation 7,620.9 2.05 31.2% (20.8%) NM NM NM NM NM

Trimble Navigation Limited 5,755.4 46.01 82.2% 20.8% 51.4% 3.5x 3.1x 19.8x 14.4x

Harris Corporation 4,761.6 41.85 91.4% (7.3%) 1.3% 1.1x 1.2x 5.5x 5.5x

Research In Motion Limited 3,815.8 7.39 23.1% (40.1%) (70.8%) 0.1x 0.1x 0.7x 1.2x

Alcatel-Lucent, S.A. 3,741.1 1.65 30.8% (1.7%) (10.0%) 0.2x 0.2x 2.0x 2.1x

JDS Uniphase Corporation 2,546.3 11.00 64.6% (1.2%) 26.7% 1.3x 1.2x 12.1x 8.3x

ADTRAN Inc. 1,923.6 30.19 70.9% 6.8% (23.8%) 2.1x 1.8x 9.6x 9.3x

Polycom, Inc. 1,875.6 10.52 30.7% 0.2% 14.0% 0.8x 0.8x 5.9x 4.5x

Netgear Inc. 1,310.7 34.51 76.2% 15.4% 23.5% 0.8x 0.7x 6.3x 5.3x

Tellabs Inc. 1,219.5 3.33 70.1% (10.6%) NM 0.2x 0.2x 12.4x 5.3x

Median 4,761.6$ 70.1% 0.2% 6.1% 1.2x 1.2x 7.5x 5.4x

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Nasdaq Telecom

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Nasdaq Telecom

Comparable

Trading

Summary

(continued)

Public Market Trading Statistics Telecom


26

Carriers and Content Providers

AT&T, Inc. 207,006.3$ 35.66$ 99.1% 1.2% 23.0% 2.1x 2.1x 7.5x 6.2x

Verizon Communications Inc. 126,609.6 44.44 99.3% 2.9% 7.5% 1.9x 1.9x 5.9x 5.7x

Comcast Corporation 86,196.6 31.97 99.9% 10.7% 6.1% 2.2x 2.1x 6.7x 6.5x

DIRECTV 31,977.0 48.82 91.4% 9.5% 12.1% 1.6x 1.5x 6.3x 5.7x

Time Warner Cable Inc. 25,655.8 82.10 98.2% 8.4% 11.1% 2.5x 2.3x 6.9x 6.3x

Dish Network Corporation 12,842.1 28.55 80.1% 3.1% (6.6%) 1.2x 1.2x 5.1x 5.3x

Sprint Nextel Corporation 9,776.2 3.26 56.7% 4.4% (22.5%) 0.6x 0.6x 4.5x 5.7x

Level 3 Communications, Inc. 4,789.2 22.15 55.3% 49.7% 71.0% 2.2x 1.9x 11.1x 8.4x

Cablevision Systems Corporation 3,602.9 13.29 48.2% 0.8% (5.1%) 2.1x 2.1x 6.5x 6.7x

Telephone & Data Systems Inc. 2,310.9 21.29 66.5% 0.8% 0.5% 0.6x 0.6x 3.0x 3.0x

MetroPCS Communications, Inc. 2,197.3 6.05 34.1% 3.8% (2.8%) 0.9x 0.9x 3.3x 3.7x

EarthLink Inc. 789.1 7.43 86.5% 2.7% (7.3%) 0.8x 0.9x 3.6x 4.0x

Clearwire Corporation 551.6 1.12 27.5% 1.7% NM 4.1x 4.3x NM NM

Median 9,776.2$ 80.1% 3.1% 3.3% 1.9x 1.9x 6.1x 5.7x

Infrastructure Services

American Tower Corporation 27,585.5$ 69.91$ 99.0% 16.2% 21.0% 13.4x 12.1x 21.4x 18.7x

Crown Castle International Corporation 17,048.9 58.66 99.0% 10.8% 14.9% 11.7x 11.3x 18.6x 17.3x

SBA Communications Corporation 6,929.3 57.05 98.6% 27.3% 28.1% 13.8x 11.2x 22.0x 18.0x

Median 17,048.9$ 99.0% 16.2% 21.0% 13.4x 11.3x 21.4x 18.0x

Managed Services

Equinix, Inc. 8,444.5$ 175.65$ 98.4% 18.7% 31.5% 6.0x 5.6x 14.3x 12.1x

Rackspace Hosting, Inc. 5,939.0 43.94 72.6% 28.8% 52.6% 5.4x 4.5x 18.6x 13.2x

Interxion Holding NV 1,211.6 18.11 89.2% 15.3% 20.6% 4.2x 4.1x 10.5x 9.9x

Median 5,939.0$ 89.2% 18.7% 31.5% 5.4x 4.5x 14.3x 12.1x

Total Telecom Median 4,789.2$ 76.3% 6.8% 16.4% 2.1x 1.9x 9.3x 6.9x






06/26/12 Pending Space Systems/Loral, Inc. Macdonald Dettwiler & Associates Ltd. 875.0$ 0.8 x NA


06/18/12 Pending Network Equipment Technologies Inc. Sonus Networks, Inc. 42.4 0.8 x NA

06/18/12 Pending Network Engines, Inc. UNICOM Systems, Inc. 55.3 0.2 x 5.1 x

06/11/12 06/11/12 Vital Support Systems, L.L.C. TDS Hosted & Managed Services, LLC 45.0 0.6 x NA

06/04/12 Pending FiberGate, Inc. Zayo Group Inc. 116.6 8.2 x 11.2 x

06/04/12 Pending Alaska Communications Systems Group Inc. General Communication Inc. 100.0 NA NA

06/02/12 Pending Q9 Networks Inc. Madison Dearborn Partners; Providence Equity 1,058.2 NA NA

06/01/12 Pending HUGHES Telematics, Inc. Verizon Enterprise Solutions Group 713.1 9.2 x NA

05/28/12 Pending LeCroy Corp. Teledyne Technologies Inc. 291.7 1.5 x 8.9 x

05/10/12 Pending Spectralink Corporation Sun Capital Partners, Inc. 114.0 1.2 x NA

05/04/12 06/04/12 Anue Systems, Inc. Ixia 145.0 3.0 x NA

04/18/12 Pending Knology, Inc. WOW! Internet, Cable and Phone 1,488.9 2.9 x 8.3 x

04/15/12 Pending Openwave, Mediation and Messaging Marlin Equity Partners 55.0 NA NA

03/26/12 Pending Opnext, Inc. Oclaro, Inc. 133.5 0.4 x NA

03/18/12 Pending AboveNet, Inc. Zayo Group Inc. 2,149.8 4.5 x 11.2 x

02/29/12 02/29/12 Cabovisão S.A. Altice One SAS 60.1 NA NA

02/24/12 03/19/12 Lightwire, Inc. Cisco Systems, Inc. 271.0 NA NA

02/20/12 Pending Vividwireless Pty Ltd. SingTel Optus Pty Ltd. 247.5 NA NA

02/20/12 02/22/12 Traffix Systems Ltd. F5 Networks, Inc. 130.0 NA NA

02/05/12 Pending SureWest Communications Consolidated Communications Holdings Inc. 560.3 2.3 x 6.5 x

02/02/12 Pending Orange Austria Telecommunication GmbH Hutchison 3G Austria GmbH 1,712.2 NA NA

01/31/12 03/23/12 M5 Networks, Inc. ShoreTel, Inc. 159.8 NA NA

01/27/12 03/16/12 RuggedCom Inc. Siemens Canada Limited 383.8 3.6 x 21.0 x

01/20/12 02/29/12 QLogic Corp., Certain Assets Intel Corporation 125.0 NA NA

01/01/12 Pending Netmagic Solutions Private Limited NTT Communications Corporation 172.8 NA NA

Median 152.4$ 1.9x 8.9x

Recent M&A

Activity

Comparable Transactions Telecom

Summary

Statistics


Note: Includes announced transactions over the last six months where enterprise value is publicly available and more than $40 million.

Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.

27

2.6x

1.9x2.1x 2.1x

2.0x

1.7x

2.1x 2.1x

1.5x 1.5x 1.5x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

0

50

100

150

200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD

LT

M R

even

ue M

ultip

leTra

nsa

ctio

n V

olu

me


Selected HW&Co. TMT Transactions

a portfolio company of

has been acquired by


has received a strategic

investment from


has acquired


has merged with


has received a minority

investment from

The Mill





has acquired


has been recapitalized by



has received a strategic

investment from

28








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TMT Group Overview

and Disclosures

Thierry Monjauze

Managing Director

63 Brook Street

London W1K 4HS

United Kingdom

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Managing Director

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Boston, MA 02110

USA

Phone: +1 (617) 654-2102 [email protected]

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

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

leadership experience spans the software, digital media, IT services, and communications sectors. Our professionals

in Boston, London, and San Francisco have global relationships with leading technology companies and financial

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29

technology, media & telecom industry update july 2012 · 7/27/2012 · the global market for...

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