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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 3Q 2017

PAGE |

TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 3Q 2017

CONTENTS

DEAL SPOTLIGHT

M&A TRANSACTIONS – 3Q 2017

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS

SOFTWARE PUBLIC COMPARABLES

TECHNOLOGY IPOS

DEBT MARKETS

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (“HW&CO.”) GLOBAL ADVISORY PLATFORM

SOFTWARE / SAAS

Enterprise Software

Data and Analytics

Data Center andManaged Services

Infrastructure andSecurity Software

IT and Tech-EnabledServices

INTERNET & DIGITAL MEDIA

Consumer Internet

Digital Media and Content

eCommerce and Retail

Mobile

Online Marketing

HW&CO. TECHNOLOGY, MEDIA & TELECOM (“TMT”) GROUP FOCUS AREAS

SELECT RECENT HW&CO. TMT TRANSACTIONS

TMT VERTICAL FOCUS AREAS

25+ year history with over 130closed transactions in the last 24months

Approximately 260 professionalsacross eight offices in the U.S. andEurope

Strategic relationships in India andChina

10 industry groups

KEY FACTS

1

HW&Co. OfficeNetwork Office

Education Technology

Engineered SolutionsSoftware

Fintech

Healthcare IT

Professional Services

Supply Chain and LogisticsTechnology

Human CapitalManagement

Member Management andNon-Profit

has received a majority investment from

has received a growth

investment fromhas been acquired by

has received a majorityInvestment from

has acquiredhas been acquired byhas been acquired by has been acquired byhas received an investment from

has been acquired byhas been acquired byhas acquired

Undisclosed

Strategic Buyer

mailto:[email protected]




mailto:*[email protected]

PAGE |



CASE STUDY: RECEIPT BANK LTD.

SECTOR TAILWINDS

Receipt Bank is a leading provider of small business-focusedbookkeeping and accounting software that enables automaticreceipt and invoice information processing, cutting down on timelost due to manual bookkeeping practices.

Receipt Bank’s solutions are used by more than 3,600 accountingbookkeeping partners, from the Big 4 accountants to small firms,and the company has been revolutionizing the bookkeepingprocess by using award-winning AI and automation since 2010.

Insight’s $50 million strategic growth investment will supportcontinued product development and accelerate globalexpansion efforts.

HW&Co.’s TMT Group advised Receipt Bank Ltd. (“Receipt Bank”) on its investment from InsightVenture Partners (“Insight”).

2

DATE CLOSED:

7/26/2017

RELEVANT SECTORS:

Data & Analytics

FinTech

HW&CO. DEAL CONTACTS

SaaS

Jonathan OrganDirector

[email protected]

Office: +44 (20) 7518 - 8909

Thierry MonjauzeManaging Director

[email protected]

Office: +44 (20) 7518 - 8901

Sylvain NobletVice President

[email protected]

Office: +44 (20) 7518 - 8917

As automation technologies and artificial intelligence continue to disrupt the traditional bookkeeping process, Receipt Bank is well-positioned as a pivotal provider bringing the accounting function out of the back office.

has received an investment from




PAGE |



SELECT SOFTWARE M&A TRANSACTIONS – 3Q 2017

3

Thoma Bravo’s acquisition of Frontline Education

Frontline Education provides administrative and HR software solutions to more than 12,000 K-12 educational institutions andmillions of educators.

The company’s products include digital record-keeping, credential tracking, onboarding, strategic insights, and analytics tohelp drive the decision-making process.

Post-acquisition, Thoma Bravo’s capital and executive resources will further support the company’s growth both organicallyand inorganically through strategic acquisitions.

September 18, 2017

Ent. Value: $1,140M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Schneider Electric’s pending merger with AVEVA

AVEVA provides engineering, design, and information management software to a broad mix of process industries includingmanufacturing, energy & power, and marine.

The company’s products allow customers to manage production schedules, improve cost efficiency, ensure quality, andmaximize the output of their asset delivery processes.

The combined company is expected to benefit from increased geographic scale and significant revenue and cost synergiesarising from an enhanced product portfolio and expanded sales and distribution channels.

Ent. Value: $2,455M

Revenue: $266M

EV / Revenue: 9.2x

EV / EBITDA: 35.8x

Pending

Nasdaq’s pending acquisition of eVestment Alliance

eVestment provides a suite of cloud-based solutions that help the institutional investing community identify global investmenttrends, select and monitor investment managers, and enable asset managers to better market their funds worldwide.

The company’s proprietary database provides screening, analytics, and insight tools delivered through a diverse set ofspecialized applications to financial advisors, banks, consultants, and asset managers.

Post-acquisition, eVestment will strengthen Nasdaq’s Global Information Services business by broadening its reach to buy-sideinvestors and diversifying its existing exchange services.

Ent. Value: $705M

Revenue: $72M

EV / Revenue: 9.8x

EV / EBITDA: NA

October 23, 2017

TCV’s majority investment in EtQ

EtQ provides compliance and quality management software solutions that adapt to a broad set of industries and companysizes.

As regulations become more complex, the company’s solutions provide insights into operational risks and give managementteams the tools required to minimize risk and drive operational efficiencies.

TCV will be the company’s first institutional investor and will leverage its experience with leading software companies toaccelerate and maximize EtQ’s growth potential.

Ent. Value: $130M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

August 17, 2017

RealPage’s acquisition of On-Site Manager

On-Site provides an online leasing platform for property managers and renters that assimilates leads from any source andconverts them into signed leases for both the multi-family and single-family housing segments.

The company’s platform encompasses screening and document management as well as prospect and resident portals andonline leasing, payment processing, and eSignature lease execution solutions.

The acquisition adds approximately 700,000 new units to the RealPage platform, presenting significant cross-sell opportunity,and offers the potential for significant operating synergies given the scale and overlap of the combined organization.

Ent. Value: $250M

Revenue: $50M

EV / Revenue: 5.0x

EV / EBITDA: 27.8x

September 26, 2017

PAGE | 4



SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME1

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active strategicsoftware acquirers registered 41acquisitions through the first threequarters of 2017.

Google remained the most activeacquirer in 3Q 2017 with fiveacquisitions in the quarter and 10year-to-date. The recent acquisitionsof Bitium and Upthere highlightGoogle’s commitment tostrengthening its position relative toAmazon and Microsoft within thecloud services market.

Global strategic software M&A registered 384 acquisitions in 3Q2017, representing a 17% increaseover 2Q 2017 and the most activequarter since 1Q 2016.

As “digital disruption” continues toimpact all facets of the economy,both large technology incumbentsand non-traditional industryconsolidators (i.e., Siemens,Schneider, GE, Honeywell, etc.)continue to view software M&A asan attractive means to drivinginnovation and recurring revenuegrowth.

327 324371

340309

402454 437 434

406

341 358 351 348 328384

4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17

5 59 9 8 9

59 9 7

28

106 4 9 4

1

83 4

12

1813

10 33

6

3

1 1

15

914

78

69

2

4 4

10

94

54

2 22 3

2017 YTD

2016

2015

2014

2013

(# of Transactions)

(# of Transactions)

Note: Includes control investments only.

PAGE | 5



SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME1

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME1

The 10 most active softwareinvestors completed 39 newplatform investments in 2017 YTD.Among this group, the top softwareinvestors are on track to surpass thenumber of transactions closed in2016.

Vista Equity remains the most activesoftware investor in 2017, withnotable deals including The AdvisoryBoard’s Education segment ($1.6billion), DH Corp. ($3.4 billion), andXactly ($546 million).

Globally, private equity registered80 new software platforminvestments in 3Q 2017, a slightdecrease from the prior quarter, butstill among the most active quarterssince 2013.

Private equity investment across thesoftware sector continues to exhibitstrong momentum driven by recordlevels of private equity dry powderand favorable debt marketconditions.

73 4

15

2 3 2 1 3

9

5 35

46 3 4 4

3

6

5 7

3

3 5 7 76 2

12

7 4

85 5 3 1

14

9

56 7

3 2 4

11 1

2017 YTD

2016

2015

2014

2013

45 4332

48 47 4454 56

47 5061

7382

73

9180

4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17

(# of Platform Transactions)

(# of Platform Transactions)

Note: Includes control new platform investments only. Excludes add-on acquisitions.

PAGE | 6



DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME1 (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS1,5

Application Software M&A registered 337 transactions in3Q 2017, representing a 13%year-over-year increase andthe most active quarter in thelast four years.

Median reported ApplicationSoftware transaction multiples continued an upward trend, reaching 2.7x revenue.

MEDIAN M&A REVENUE MULTIPLES1 (REPORTED)

1.6x

2.5x2.5x

2.1x

2.3x2.3x

1.4x

2.5x

2.3x

2.5x2.4x

2.5x

2.3x

2.7x

2.3x

2.4x

2.7x

Vertical-specific softwarecompanies remain highlysought-after as evidenced bythe pending merger ofSchneider Electric and AVEVA(AEC), Apax’s pendingacquisition of ECi Software(manufacturing), Berkshire’sacquisition of Accela (publicsector), Genstar’s acquisitionof PDI (retail petroleum), andRealPage’s acquisition of On-Site (real estate).

252 251

227

282 271

289

272

319 320 316 314

281

298 307

291 288

337

MEDIAN

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

Application Software

Pending Schneider Electric AVEVA Business management software for the engineering and construction industries. $2,455 9.2x

Pending Partners Group Civ ica Group Ltd. Specialist software, digital solutions, and outsourcing serv ices. $1,370 3.9x

Pending Leonard Green & Partners CPA Global Ltd. Intellectual property management software for corporations and law firms. $3,103 NA

Pending Apax Partners ECi Software Solutions, Inc. Industry-specific business operations and integrated supply chain software. NA NA

Pending Dassault Systèmes SA Exa Corp. Simulation software and related serv ices for vehicle manufacturers. $349 4.8x

09/28/17 Berkshire Partners Accela, Inc. Regulatory management software for government agencies. NA NA

09/26/17 RealPage, Inc. On-Site.com End-to-end real estate leasing platform. $250 5.0x

09/18/17 Thoma Bravo Frontline Education Workforce management platform for educators and administrators. $1,140 NA

09/14/17 Berkshire Partners Curriculum Associates LLC K-12 educational assessment and instructional platform. NA NA

09/08/17 Riverside Partners Calero Software Communication lifecycle management software. $100 2.3x

08/30/17 Körber AG HighJump Software, Inc. Supply chain execution and warehouse management software. $750 3.8x

08/24/17 Genstar PDI Enterprise software for the convenience retail and wholesale petroleum markets. NA NA

08/08/17 Intermediate Capital Group proALPHA Business Solutions GmbH ERP software for manufacturing and trading companies. $472 4.5x

07/10/17 Thoma Bravo Lexmark Intl. (Enterprise Software Assets) Portfolio of advanced digital transformation software technologies. $1,500 NA

$945 4.5x

HW&CO. CONFIDENTIAL

PAGE | 7



47 45 46

60

54 53

65

68 70

55

52 51 52 54

48

43

55

NOTABLE SAAS M&A TRANSACTIONS1,5

4.4x

5.3x

5.6x 5.7x

4.4x

3.5x

3.9x

4.4x4.2x

4.6x

4.9x

5.6x5.4x

4.8x4.6x

4.7x4.8x

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME1 (GLOBAL)

SaaS M&A registered 55transactions in 3Q 2017, a 28%increase over 2Q 2017, and anuptick from the prior twoquarters.

Median reported SaaStransaction multiples remainedconsistent with the prior threequarters at 4.8x revenue.

SaaS M&A activity remainsrobust as both strategic andprivate equity buyers continueto invest across the sector.

Notable 3Q 2017 SaaStransactions includeEnvestnet’s pendingacquisition of FolioDynamix,SAP’s pending acquisition ofGigya, Navicure’s pendingacquisition of Zirmed, andVista Equity’s take private ofXactly.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

SaaS

Pending Envestnet, Inc. FolioDynamix Cloud-based wealth management platform. $195 NA

Pending SAP SE Gigya, Inc. Cloud-based customer identity and access management platform. $350 NA

Pending CVC Capital Partners VelocityEHS SaaS-based environmental, health, and safety regulation compliance software. $328 NA

Pending Industrial & Financial Systems AB Workwave LLC SaaS-based software for the field serv ice and last mile delivery and logistics markets. NA NA

Pending Navicure, Inc. ZirMed, Inc. Cloud-based financial and clinical performance management software. $750 NA

10/03/17 Lithium Technologies, Inc. Jive Software SaaS-based communication and collaboration software. $462 2.3x

10/02/17 Ellie Mae, Inc. Velocify, Inc. Cloud-based sales acceleration platform for boosting sales team productiv ity. $128 NA

09/04/17 Turn/River Management Huddle Cloud-based collaboration software. $79 6.0x

08/17/17 TCV EtQ Web-based enterprise software for compliance management. $130 NA

08/15/17 The Descartes Systems Group, Inc. Macropoint LLC SaaS-based global freight v isibility platform. $107 8.6x

07/31/17 Vista Equity Partners Xactly Corp. Cloud-based enterprise-wide incentive management software. $473 4.9x

07/18/17 PayPal Holdings, Inc. TIO Networks Corp. Cloud-based multi-channel bill payment processing and receivables management software. $237 3.2x

07/01/17 2U GetSmarter Online certification courses and eLearning solutions. $123 7.2x

06/30/17 Castik Capital Partners Wolters Kluwer Transport Serv ices On-demand transport management software for connecting transport communities. $87 2.1x

$195 4.9x

PAGE | 8



NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS1

74

64 67

72 76

99

89

105

112

102

82

87

97 100

105 106 107

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME1 (GLOBAL)

Data and Analytics M&A volume continued its upwardmomentum, with 107transactions registered in 3Q2017, representing the sixthconsecutive growth quarter.

In 3Q 2017, median reportedsector transaction multiples increased to 3.1x revenue, largely driven by heightened interest from large technology incumbents.

Data and Analytics continuesto represent a key focus areafor strategic acquirers,particularly among establishedproviders looking tosupplement growth throughacquisitions.

Recent examples includeVerint’s pending acquisition ofeg solutions, Oracle’s pendingacquisition of Moat, Verisk’spending acquisition of Sequel,Nasdaq’s acquisitions ofeVestment Alliance andSybenetix, and IHS Markit’sacquisition of AutomotiveMastermind.


1.4x

1.3x

1.9x 1.9x

2.7x

3.3x

2.8x

2.0x

2.6x2.6x

1.9x

3.1x

2.4x2.5x

2.8x

2.5x

3.1x

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

Data and Analytics

Pending Verint Systems eg solutions Plc Back office workforce optimization software. $30 2.2x

Pending E.I. du Pont de Nemours Granular, Inc. Farm management and analytics software. $300 NA

Pending Oracle Corp. Moat, Inc. Cloud-based actionable marketing analytics software. $850 NA

Pending Next Investors LLC Sapience Analytics Enterprise workforce analytics and efficiency software. NA NA

Pending Verisk Analytics, Inc. Sequel Business Solutions Ltd. Complex commercial and specialty insurance software and analysis tools. $321 9.6x

Pending Accesso Technology The Experience Engine, Inc. Consumer engagement platform driven by real-time information. $81 6.4x

10/23/17 Nasdaq, Inc. eVestment Alliance LLC Cloud-based institutional investment data intelligence and analytics platform. $705 9.8x

10/06/17 CGI Nordic Investments Ltd. Affecto Oyj Enterprise information management and business intelligence software. $123 0.9x

09/26/17 IHS Markit Ltd. automotiveMastermind, Inc. Predicitve analytics and marketing automation software for the auto industry. $503 15.8x

09/18/17 Nasdaq, Inc. Sybenetix Ltd. Enterprise behavioral analytics software for surveillance purposes. NA NA

08/22/17 Vestar Capital Partners Quest Analytics Health plan provider network management software. NA NA

08/14/17 Great Hill Partners Zoom Information, Inc. B2B database platform to help companies optimize sales and marketing effectiveness. $240 6.0x

07/12/17 Hansen Technologies Enoro Customer information and meter data management software for energy markets. $76 1.7x

07/10/17 Vela Trading Technologies LLC OptionsCity Software, Inc. Futures and options trading and analytics systems. NA NA

$270 6.2x

PAGE | 9



56 55 53

48

56

47 45

50

36

52

44

57 60

75

63 62

77

1.2x

2.4x2.5x

2.9x

2.4x

2.7x

3.0x

3.2x3.3x

2.6x

2.9x

2.6x2.7x

3.1x

2.6x

2.4x

3.0x

NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS1

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME1 (GLOBAL)

Infrastructure Software M&A registered 77 transactions in3Q 2017, representing a 28%increase over 3Q 2016 levels.

3Q 2017 median reportedInfrastructure Software transaction multiples increased to 3.0x revenue, a valuation level slightly above historical averages.

Both established softwarevendors including Google,Cisco, Open Text, andSymantec, as well as privateequity investors, remain keenon high quality infrastructuresoftware assets.

One year after announcingthe deal, Micro Focus andHPE’s software divisioncompleted their merger. Thecombined entity nowrepresents the world’s seventhlargest pure-play softwarecompany, with revenue inexcess of $4.4 billion.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

MEDIAN

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

4Q '1

5

1Q '1

6

2Q '1

6

3Q '1

6

4Q '1

6

1Q '1

7

2Q '1

7

3Q '1

7

Infrastructure Software

Pending HGGC IDERA Systems and application management software. $1,125 NA

Pending Apax Partners ThoughtWorks, Inc. Software development and digital transformation solutions. NA NA

10/03/17 OMRON Corp. Microscan Systems, Inc. Code scanning and decoding technology for critical automatic identification / verification. $160 2.8x

09/26/17 Google Bitium, Inc. Cloud-based identity management platform. NA NA

09/25/17 Mitel Networks Corp. ShoreTel, Inc. Business communication systems, including unified communications, voice, and SMS. $530 1.5x

09/22/17 Cisco Systems, Inc. Springpath, Inc. Hyperconvergence software designed for enterprise storage and data management. $320 NA

09/21/17 Francisco Partners Sandvine Corp. Network policy control serv ices for cable, fixed wireless, and mobile operators. $442 3.9x

09/14/17 Open Text Corp. Guidance Software, Inc. Forensic-security software that enables increased v isibility across endpoints and networks. $240 2.2x

09/01/17 Micro Focus International Plc HPE (Software Div ision) Diversified enterprise software, including application lifecycle management and analytics. $6,268 NA

08/17/17 Centerbridge Partners Syncsort / Vision Solutions Big data, high availability, and disaster recovery solutions for IBM Power and other systems. $1,260 NA

08/01/17 Cisco Systems, Inc. Viptela, Inc. Cloud-based WAN v irtualization software. $610 6.1x

07/31/17 Symantec Corp. Skycure Ltd. Mobile security software to defend against malware and other network-based threats. $250 NA

07/30/17 Symantec Corp. Fireglass Ltd. Cyber security solutions for web and email with no endpoint agent. $250 NA

07/26/17 Open Text Corp. Covisint Corp. Cloud-based building identity and IoT application development. $67 1.0x

$381 2.5x

PAGE | 10



PRIVATE PLACEMENT CAPITAL RAISED BY ROUND1,4 (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

There were 853 privateplacement financings in 3Q2017, which represents a14% increase over 2Q 2017.

Total reported capitalinvested in 3Q 2017 was$10.1 billion, which is downcompared to the priorquarter due to a higher mixof smaller early stage roundsvs. larger late stage rounds.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 3Q 2017, early stagerounds (Series B and earlier)represented 44% of totalprivate capital raised, anincrease from 24% in 2Q2017.

Notable early stage roundsinclude Insight VenturePartners’ $50 million Series Binvestment in Receipt Bankand Georgian Partners,Accomplice, and OakInvestment Partners’ $45million Series B investment inFreshBooks.

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED1,4

912

829

940 952

1013 997 1033

960

756869

896

817785 797

751

853

$0

$4,000

$8,000

$12,000

$16,000

$20,000

$24,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17

$ in

Mill

ion

s

Vo

lum

e

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

5% 6% 4% 2% 4% 2% 4% 4% 2% 4% 2% 2% 1% 2% 2% 1% 1%

19% 29%

17% 14%

24%

7%

22% 28%

16% 22%

17% 11% 8%

16% 12% 11% 14%

22%

19%

33%

26%

26%

24%

33% 26%

17%

32%

26%

25% 21%

32%

21% 12%

29%

34% 15% 26%

20%

16%

11%

22% 17%

29%

14% 39%

28%

20%

19%

19%

27%

17%

21% 31%

20%

37% 30%

55%

18% 25%

36% 28%

15%

33%

50%

30%

46% 49% 39%

3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17

Seed Series A Series B Series C Series D / or later

PAGE | 11



SELECT RECENT SOFTWARE PRIVATE PLACEMENTS1,4

Note: Financial information presented above represents reported capital raised only.

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($MM)

SECTORTOTAL RAISED ($MM)

09/27/17 SaaS Growth $45 $158 Sumeru Equity; Bpifrance; Daher Capital; HSBC Innov ation

Inv estments; Iris Capital

Prov ider of cloud treasury and financial management

software.

09/21/17 SaaS C $110 $202 DST GlobalProv ider of freight forwarding and supply chain v isibility

software.

09/20/17 Infrastructure A $29 NA Volition Capital; Eight Road Ventures Prov ider of security analytics software.

09/18/17 SaaS G $250 $790 SoftBank Group; AccelProv ider of team communication and collaboration

software.

09/15/17 SaaS Growth $50 NA Susquehanna Growth EquityProv ider of cloud-based financial supply chain

management software.

09/13/17 SaaS E $55 $329 Premji Inv est; ICONIQ; K1 Capital; Salesforce VenturesProv ider of cloud-based quote-to-cash automation

software solutions.

09/06/17 SaaS Growth $59 NA Silv ersmith CapitalProv ider of cloud-based learning and performance

management software.

08/22/17Data &

Analytics D $140 $247

Andreessen Horowitz; A.Capital Ventures; Battery Ventures;

Geodesic Capital; Green Bay Ventures; New Enterprise

Associates; The Future Fund

Prov ider of a unified analytics platform designed to

simplify big data.

08/15/17Data &

AnalyticsGrowth NA NA Silv er Lake; TriWest Capital Partners; HarbourVest Partners

Prov ider of well data software solutions to the oil and

gas industry.

07/26/17 SaaS B $50 $60 Insight Venture PartnersProv ider of SaaS solutions for accountants and

bookkeepers.

07/18/17 SaaS B $45 $75 Georgian Partners; Accomplice; Oak Inv estment PartnersProv ider of an accounting software platform for small

businesses.

07/12/17 SaaS C $42 $79 New Enterprise Associates; Canv as Ventures; Lerer Hippeau

Ventures

Prov ider of logistics intelligence software and a

truckload marketplace platform.

PAGE | 12



PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR1

EBITDA MULTIPLE COMPARISON 3Q 2016 VS. 3Q 2017

7.4x 7.5x 7.6x

4.4x

5.3x 5.1x 5.3x

4.1x4.7x 4.6x 4.6x 4.8x

4.2x

3.8x3.8x 3.5x

1.2x

9.0x 8.8x

6.7x6.3x 6.1x 6.1x

5.4x5.4x 5.4x 5.3x 5.2x 5.1x

4.2x 4.2x

3.5x 3.4x

1.6x

3Q 2016 3Q 2017

61.6x

56.6x

45.6x

57.4x

15.9x

19.4x

35.1x

17.3x17.8x

14.5x

21.0x

15.6x17.8x

14.0x

21.9x

30.4x

12.1x

34.1x

54.2x56.4x

47.0x

17.1x

23.9x

35.4x

18.2x

15.7x16.2x

18.6x 17.1x22.2x

13.4x

17.2x

22.4x

14.6x

3Q 2016 3Q 2017

REVENUE MULTIPLE COMPARISON 3Q 2016 VS. 3Q 2017STOCK PERFORMANCE (1- & 3-YEAR)

2.7%

30.4%

6.7%

31.0%

29.6%

32.6%

31.1%

12.2%

23.2%

21.1%

13.8%

22.0%

15.7%

19.0%

8.2%

16.2%

36.6%

29.5%

78.0%

39.0%

45.0%

86.8%

63.3%

47.6%

7.3%

113.9%

58.1%

46.2%

57.0%

17.9%

49.8%

2.9%

20.9%

69.9%

1 Yr Index Change 3 Yr Index Change

SCM & Logistics

Large-Cap SaaS

HCM

Marketing

Financial

PLM & Engineering

Small-Cap SaaS

Data & Analytics

EdTech / Non-Profit

Bellwethers

IT Security

Enterprise

HCIT

IT Operations Mgmt.

Communication

Data Storage

Energy

PAGE | 13



`

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES1

9.0x

8.8x

6.7x

6.3x

6.1x

6.1x

5.4x

5.4x

5.4x

5.3x

5.2x

5.1x

4.2x

4.2x

3.5x

3.4x

1.6x

SCM & Logistics

Large-Cap SaaS

HCM

Marketing

Financial

PLM & Engineering

Small-Cap SaaS

Data & Analytics

EdTech / Non-Profit

Bellwethers

IT Security

Enterprise

HCIT

IT Operat ions Mgmt.

Communication

Data Storage

Energy

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

18% 64% 23% 75% 68% 28%

27% 104% 16% 44% - 27%

23% 92% 20% 82% 21% -

23% 173% 9% 73% - 81%

11% 16% 35% 62% - 73%

13% 30% 26% 46% - 70%

26% 111% 11% 47% - -

12% 48% 16% 78% 36% 54%

15% 30% 25% 79% 47% 35%

5% 27% 31% 85% 47% 25%

20% 65% 19% 22% - 66%

16% 24% 31% 68% 67% 48%

22% 56% 16% 8% 53% 30%

12% 48% 29% 33% 52% -

20% 145% 17% - - 32%

15% 115% 10% 26% 15% 34%

9% 9% 12% - - 100%

PAGE | 14



SUMMARY OF TECHNOLOGY IPOS

Technology companies’ share of U.S. IPOshas fallen to a seven-year low with just 12IPOs completed year-to-date.

Record valuation levels in the privatemarkets, particularly for high qualitysoftware assets, have presented acompelling alternative to the IPO market asshareholders seek liquidity.

MARKET CAP AT IPO (LTM) 1 REVENUE GROWTH (1YR PRIOR TO IPO) 1OFFERING SIZE AT IPO (LTM) 1

RECENT U.S. TECHNOLOGY IPO ACTIVITY (BY OFFERING SIZE) 1

25%

46%

29%

< 25% 25 - 75% > 75%

38%

33%

29%

$0-50M $50-500M $500M-$1B $1B+

13%

6%

56%

25%

$0 - 50M $50 - 100M $100 - 250M $250M +

(All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months) (All tech IPOs over the last 12 months)

11

18

7

11

5

15

3

8

0

2

9

4

5

6

1

1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16 3Q-16 4Q-16 1Q-17 2Q-17 3Q-17

$0 - 50M $50 - 100M $100 - 250M $250M +

2014 Total: 47 2016 Total: 152015 Total: 31 2017 YTD Total: 12

PAGE | 15



(150.0%)

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

150.0%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

thSto

ck

Pe

rfo

rma

nc

e (

Offe

r to

Cu

rre

nt)

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS1

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

127.4% 120.2%

15.4%

39.9%

73.1%

100.7%

(1.4%)

1.1%

18.5%

45.5%

65.9%

10.8%

137.2%

22.3%

9.5%

43.2% 33.4% 20.5%

84.3% 115.3%

49.3%

85.7%

17.7% 70.3%

59.4%

86.6%

57.2%

9.1% 31.5%

2.9%

(150.0%)

(50.0%)

50.0%

150.0%

250.0%

7/28/16 9/15/16 9/22/16 9/29/16 10/5/16 10/27/16 12/15/16 3/9/17 3/16/17 3/24/17 4/6/17 4/27/17 5/25/17 6/7/17 10/5/17

$18.0 $12.0 $16.0 $16.0 $18.0 $17.0 $11.0 $14.0 $17.0 $14.0 $17.0 $15.0 $12.0 $11.0 $17.0

$503.5 $323.1 $596.6 $1,958.5 $866.0 $838.6 $330.3 $1,240.6 $2,141.9 $662.5 $1,542.9 $1,921.0 $704.3 $100.2 $2,951.6

$94.5 $90.0 $96.0 $237.9 $133.2 $146.2 $287.2 $233.3 $221.0 $126.0 $187.0 $225.0 $75.0 $30.8 $531.3

127.4% 120.2% 15.4% 39.9% 73.1% 100.7% (1.4%) 1.1% 18.5% 45.5% 65.9% 10.8% 137.2% 22.3% 9.5%

MARKET CAP AT OFFER ($M)

PAGE | 16



13.9%

5.4%

9.0%

9.2%

13.1%

19.0%

30.4%

Other

Restaurants

Services & Leasing

Home Furnishings

Retail

Technology

Healthcare

54% 50%

57% 55% 54%

60% 58%

56%

50%

55%

2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q'17

4.0x

3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x 5.3x 5.3x5.5x

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 3Q'17

FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA

LBO LOAN VOLUME BY INDUSTRY2,3 MEDIAN LBO DEBT PERCENTAGES4

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES2,3 MIDDLE MARKET LBO VOLUME BY QUARTER2,3

2017 YTD New Issue LBO Loans Percentage of Total Purchase Price

Median middlemarket LBO loanmultiples through 3Q2017 increased slightlyto 5.5x leverage,reaching close to 2007highs.

Middle market LBOloan volumeincreased to $2.7billion in 3Q 2017,representing a threeyear high.

Technologycompanies were the second largest recipients of middle market LBO loans through 3Q 2017, representing 19.0% of new issuance.

Median LBO debtpercentagesincreased to 55% oftotal purchase pricethrough 3Q 2017.

Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less

$1.6B$1.5B

$1.8B

$1.2B

$1.9B$2.0B

$0.4B

$0.9B

$1.2B

$0.7B

$0.9B$1.1B

$1.8B

$2.7B

2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17

Institutional Pro Rata

PAGE | 17



DEEP TMT EXPERIENCE ACROSS SOFTWARE VERTICALS

Education TechnologyeCommerce and Retail Engineered Solutions

FinTech

Enterprise Software

Healthcare IT Human Capital Management Infrastructure Software

Internet and Digital Media Legal TechnologyIT Services

Please click here if you would like to contact HW&Co. in order to discuss any particular sector.

Supply Chain and Logistics TechnologySecurity SoftwareOnline Marketing and Data Analytics

Membership Mgmt. and Non-Profit Software

mailto:*[email protected]?subject=TMT Reader Follow Up

PAGE | 18



SELECT HW&CO. TMT TRANSACTIONS

strategic investment

fromacquired by acquired by acquired by acquired byacquired byacquired by acquired by

acquired by

and

acquired by acquired by

acquired by

and

acquired by


acquired acquired by acquired by acquired by acquired by recapitalized by acquired by acquired byacquired by acquired byacquired by

B2C

acquired byacquired by

strategic investment

fromacquired by

acquired byacquired by acquired bymajority investment

fromacquired bymerged with

acquired a majority

stake inacquired byacquired by investment from recapitalized by

minority investment

fromacquired by

acquired byacquired

acquired by acquired byacquired byacquired byacquired by majority

recapitalization by

recapitalized by acquired bysignificant equity

investment fromacquired byacquired byacquired by

acquired by

and


merged withsignificant equity

investment fromacquired by acquired by acquired by acquired by acquired byacquired by acquired byacquired by

growth equity

investment fromacquired by

a portfolio company of

recapitalized

by management

acquired byrecapitalized by

acquired byacquired by

acquired by acquired by acquired by acquired byacquired by acquired byacquired byacquired by acquired by

GFI Energy Group

a division of

acquired byminority investment

from

significant equity

investment from

minority investment

from

majority investment

from

majority investment

fromacquired byacquired by

growth Investment

from

majority investment

fromacquiredacquired by acquired byacquired byinvestment from acquired by

Undisclosed

Buyer

acquired by

Undisclosed

Strategic Buyer

acquired byacquired

http://epiqsystems.com/

http://www.aderant.com/

http://www.meddatahealth.com/our_business/index.html

http://www.cltsloyalty.com/

http://www.rewardsnetwork.com/

http://www.oaktreecapital.com/default.aspx

http://www.leisurepassgroup.com/

PAGE | 19



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSE1

SA

AS

HO

RIZ

ON

TAL

INFR

ASTR

UC

TUR

E

SO

FTW

AR

EV

ER

TIC

AL

AP

PLI

CA

TIO

N S

OFT

WA

RE

Software Bellwethers Google Microsoft Oracle Cisco IBM SAP Adobe Salesforce HPE

Communication Software NICE Nuance Twilio BroadSoft Synchronoss MobileIron

Enterprise Software Oracle IBM SAP Adobe ADP Intuit Amadeus Constellation Sage OpenText

Human Capital Management (HCM) ADP Paychex Workday Ultimate Paycom Paylocity Cornerstone Benefitfocus

Marketing Software Adobe Salesforce HubSpot Criteo Callidus Bazaarv oice ChannelAdv isor

PLM & Engineering Software Dassault Autodesk Hexagon AB Synopsys Cadence Ansys Trimble PTC Nemetschek

Supply Chain & Logistics Software Manhattan Descartes Coupa Kinaxis SPS CommerceHub American Park City Amber Road

Energy Software AspenTech Itron PSI

Financial Software Fiserv MSCI SS&C Jack Henry Square Oracle FSS Black Knight Env estnet Blackline Q2 Holdings

Healthcare IT (HCIT) Cerner Veev a athenahealth Medidata Allscripts HMS Ev olent Health Inov alon Quality Systems Model N

EdTech / Non-Profit Software Constellation Tyler Tech Blackbaud 2U NIC Instructure K12 Cambium

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Serv iceNow Check Point Workday Veev a Guidewire LogMeIn Ultimate athenahealth Medidata

Large-Cap SaaS (cont'd) Paycom Proofpoint Atlassian RealPage HubSpot Xero ZenDesk RingCentral Cornerstone Alarm.Com

Large-Cap SaaS (cont'd) Ebix Box

Small-Cap SaaS (≤ $2Bn Mkt Cap) Qualys Q2 Holdings Callidus Coupa Mimecast CyberArk Fiv e9 Yext Hortonworks MINDBODY

Small-Cap SaaS (cont'd) Benefitfocus SPS Instructure Rapid7 Workiv a AppFolio Model N Apptio Castlight Health Amber Road

Data & Analytics Verisk Splunk Tableau Pegasystems Teradata Verint MicroStrategy Talend Inov alon PROS Holdings

IT Operations Management Serv iceNow Red Hat CA Micro Focus Arista Citrix VMware F5 Networks Software AG NetScout

IT Operations Management (cont'd) New Relic Progress Radware Apptio

Data Storage NetApp Iron Mountain CommVault Nutanix Box Pure Storage Barracuda Carbonite

IT Security Cisco Symantec Check Point Palo Alto VeriSign Trend Micro Fortinet Gemalto Proofpoint FireEye

IT Security (cont'd) Qualys Mimecast CyberArk Varonis Rapid7 Cheetah Mobile SecureWorks

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS1

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /

Company Ticker Value ($mm) Cap ($mm) Week High Performance Performance LTM NTM Margin LTM Rev. 2017E Rev. 2018E Rev. LTM EBITDA Earnings

SOFTWARE BELLWETHERS

Alphabet Inc. GOOGL $594,257 $622,016 96.5% 21.1% 68.0% 22.1% 1.4% 32.1% 6.0x 6.7x 5.7x 18.7x 32.2x

Microsoft Corporation MSFT 539,132 576,783 98.1% 29.3% 62.3% 5.5% 19.2% 37.2% 6.0x 5.4x 5.0x 16.2x 27.2x

Oracle Corporation ORCL 193,932 203,708 91.0% 23.1% 26.9% 3.0% 4.7% 42.0% 5.1x 5.0x 4.8x 12.1x 21.0x

Cisco Systems, Inc. CSCO 133,023 166,365 97.2% 6.0% 34.4% (2.5%) 0.8% 31.3% 2.8x 2.8x 2.7x 8.8x 17.3x

IBM Corporation IBM 169,820 136,520 79.4% (8.7%) (22.5%) (2.3%) (0.7%) 19.1% 2.2x 2.2x 2.2x 11.3x 11.9x

SAP SE SAP 134,278 135,440 99.1% 20.0% 53.9% 7.8% 14.7% 26.7% 5.3x 4.8x 4.5x 19.8x 35.8x

Adobe Systems Incorporated ADBE 71,170 73,554 94.5% 37.4% 120.9% 23.9% 22.9% 33.2% 10.4x 9.7x 8.1x 31.3x 46.2x

salesforce.com, inc. CRM 66,820 67,143 95.1% 31.0% 64.7% 25.6% 25.2% 8.0% 7.1x 6.5x 5.4x 89.4x NM

Hewlett Packard Enterprise Co. HPE 30,767 24,106 59.1% 11.3% NA (30.1%) (17.1%) 17.5% 0.9x 0.9x 1.1x 4.9x 75.8x

Median $134,278 $136,520 95.1% 21.1% 58.1% 5.5% 4.7% 31.3% 5.3x 5.0x 4.8x 16.2x 29.7x

COMMUNICATION SOFTWARE

NICE Systems Ltd. NICE-IL $5,026 $4,868 96.0% 19.3% 95.1% 27.5% 21.0% 21.8% 4.3x 3.7x 3.5x 19.7x 48.6x

Nuance Communications, Inc. NUAN 6,257 4,577 78.9% 8.4% 2.9% 1.7% 2.2% 21.4% 3.2x 3.2x 3.1x 14.8x NM

Twilio, Inc. TWLO 2,423 1,955 42.9% (53.6%) NA 53.4% 31.7% NM 7.2x 6.5x 5.2x NM NM

BroadSoft, Inc. BSFT 1,387 1,585 96.5% 8.1% 140.0% 13.1% 18.2% 8.3% 3.9x 3.6x 3.2x 46.9x NM

Synchronoss Technologies, Inc. SNCR 530 507 18.7% (77.3%) (79.0%) (17.6%) 65.0% 11.9% 1.1x 0.7x 0.7x 9.4x NM

MobileIron, Inc. MOBL 255 360 54.6% 34.5% (64.6%) 8.9% 13.3% NM 1.5x 1.4x 1.3x NM NM

Median $1,905 $1,770 66.7% 8.2% 2.9% 11.0% 19.6% 16.6% 3.5x 3.4x 3.1x 17.2x 48.6x

ENTERPRISE SOFTWARE

Oracle Corporation ORCL $193,932 $203,708 91.0% 23.1% 26.9% 3.0% 4.7% 42.0% 5.1x 5.0x 4.8x 12.1x 21.0x

IBM Corporation IBM 169,820 136,520 79.4% (8.7%) (22.5%) (2.3%) (0.7%) 19.1% 2.2x 2.2x 2.2x 11.3x 11.9x

SAP SE SAP 134,278 135,440 99.1% 20.0% 53.9% 7.8% 14.7% 26.7% 5.3x 4.8x 4.5x 19.8x 35.8x

Adobe Systems Incorporated ADBE 71,170 73,554 94.5% 37.4% 120.9% 23.9% 22.9% 33.2% 10.4x 9.7x 8.1x 31.3x 46.2x

Automatic Data Processing, Inc. ADP 48,446 48,580 89.8% 23.9% 53.1% 6.1% 7.1% 22.1% 3.9x 3.8x 3.6x 17.7x 28.0x

Intuit Inc. INTU 36,810 36,441 96.9% 29.2% 65.8% 10.3% 11.6% 31.5% 7.1x 6.8x 6.2x 22.6x 37.5x

Amadeus IT Group AMS-ES 30,656 28,325 98.5% 30.1% 78.0% 17.7% 17.9% 38.2% 6.0x 5.3x 5.0x 15.7x 28.8x

Constellation Software Inc. CSU-CA 11,465 11,821 95.3% 21.0% 113.9% 14.0% 18.0% 25.8% 5.1x 4.7x 4.2x 19.6x 52.6x

Sage Group plc SGE-GB 10,581 10,179 95.9% (2.2%) 60.0% (2.9%) 16.7% 29.7% 4.9x 4.5x 4.1x 16.4x 33.2x

Open Text Corporation OTEX 10,362 8,575 91.7% (0.4%) 17.5% 25.6% 18.2% 33.3% 4.5x 4.2x 3.8x 13.6x 8.4x

Median $42,628 $42,510 94.9% 22.0% 57.0% 9.0% 15.7% 30.6% 5.1x 4.8x 4.3x 17.1x 31.0x

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 21



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS (CONT’D) 1

HUMAN CAPITAL MANAGEMENT SOFTWARE

Automatic Data Processing, Inc. ADP $48,446 $48,580 89.8% 23.9% 53.1% 6.1% 7.1% 22.1% 3.9x 3.8x 3.6x 17.7x 28.0x

Paychex, Inc. PAYX 21,418 21,397 95.1% 3.6% 37.9% 6.8% 7.2% 43.4% 6.8x 6.6x 6.3x 15.7x 26.2x

Workday, Inc. WDAY 20,269 13,979 94.6% 14.9% 30.9% 36.9% 32.8% NM 11.0x 9.9x 7.8x NM NM

Ultimate Software Group, Inc. ULTI 5,705 5,666 81.2% (7.2%) 40.1% 23.0% 25.0% 7.6% 6.6x 6.1x 5.1x 87.8x 147.3x

Paycom Software, Inc. PAYC 4,375 4,449 97.7% 49.5% 365.6% 34.6% 33.7% 20.2% 11.4x 10.1x 8.1x 56.4x 81.5x

Paylocity Holding Corp. PCTY 2,536 2,574 98.3% 9.8% 146.8% 30.0% 30.0% 9.4% 8.5x 7.6x 6.2x 89.5x NM

Cornerstone Ondemand, Inc. CSOD 2,245 2,348 87.0% (11.6%) 23.5% 14.3% 20.7% NM 5.0x 4.7x 4.0x NM NM

Benefitfocus, Inc. BNFT 1,098 1,029 79.2% (15.7%) 28.7% 16.8% 14.4% NM 4.4x 4.3x 3.7x NM NM

Median $5,040 $5,057 92.2% 6.7% 39.0% 19.9% 22.8% 20.2% 6.7x 6.3x 5.6x 56.4x 54.8x

MARKETING SOFTWARE

Adobe Systems Incorporated ADBE $71,170 $73,554 94.5% 37.4% 120.9% 23.9% 22.9% 33.2% 10.4x 9.7x 8.1x 31.3x 46.2x

salesforce.com, inc. CRM 66,820 67,143 95.1% 31.0% 64.7% 25.6% 25.2% 8.0% 7.1x 6.5x 5.4x 89.4x NM

HubSpot, Inc. HUBS 2,878 3,108 99.9% 45.9% NA 41.6% 37.7% NM 9.0x 7.8x 6.2x NM NM

Criteo SA CRTO 2,542 2,820 74.1% 18.2% 25.3% 32.5% (46.5%) 9.2% 1.2x 2.7x 2.2x 13.5x 39.7x

Callidus Software Inc. CALD 1,432 1,694 90.1% 34.3% 107.5% 20.1% 23.7% NM 6.3x 5.8x 4.9x NM NM

Bazaarv oice, Inc. BV 362 428 80.7% (16.2%) (31.7%) 2.8% 2.7% 2.8% 1.7x 1.8x 1.7x 62.8x NM

Channeladv isor Corporation ECOM 247 309 72.6% (11.1%) (28.7%) 10.1% 13.6% NM 2.1x 2.0x 1.8x NM NM

Median $2,542 $2,820 90.1% 31.0% 45.0% 23.9% 22.9% 8.6% 6.3x 5.8x 4.9x 47.0x 42.9x

PLM & ENGINEERING SOFTWARE

Dassault Systemes SA DSY-FR $24,025 $26,452 94.3% 16.6% 56.4% 7.0% 17.6% 29.2% 6.9x 6.2x 5.8x 23.8x 52.2x

Autodesk, Inc. ADSK 24,518 24,751 93.8% 55.2% 101.7% (14.7%) 22.2% NM 12.6x 12.0x 9.8x NM NM

Hexagon AB HEXA.B-SE 20,365 17,076 96.2% 13.1% 57.1% 5.1% 16.6% 31.5% 5.7x 5.1x 4.8x 18.0x 28.1x

Synopsys, Inc. SNPS 11,590 12,223 98.7% 35.7% 103.8% 12.0% 4.9% 23.9% 4.3x 4.3x 4.1x 18.1x 37.1x

Cadence Design Systems, Inc. CDNS 11,018 11,163 99.9% 54.6% 132.9% 5.4% 7.7% 22.6% 5.9x 5.7x 5.4x 26.1x 46.4x

ANSYS, Inc. ANSS 9,801 10,514 92.5% 32.5% 63.3% 7.5% 8.6% 44.8% 9.5x 9.2x 8.6x 21.1x 38.6x

Trimble Inc. TRMB 10,217 10,065 97.4% 37.4% 31.6% 5.7% 13.0% 17.5% 4.2x 4.0x 3.6x 23.9x 56.8x

PTC Inc. PTC 6,939 6,552 93.5% 27.0% 54.8% (1.6%) 6.4% 10.3% 6.1x 5.9x 5.5x 58.6x NM

Nemetschek SE NEM-DE 3,133 3,231 98.7% 32.6% 228.4% 16.5% 30.3% 27.7% 7.8x 6.6x 5.8x 28.0x 58.8x

Median $11,018 $11,163 96.2% 32.6% 63.3% 5.7% 13.0% 25.8% 6.1x 5.9x 5.5x 23.9x 46.4x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 22




SUPPLY CHAIN AND LOGISTICS SOFTWARE

Manhattan Associates, Inc. MANH $2,799 $2,956 69.7% (27.9%) 27.9% 1.5% 3.4% 33.8% 4.7x 4.7x 4.5x 13.8x 24.1x

Descartes Systems Group Inc. DSG-CA 2,041 2,118 93.0% 26.7% 99.8% 11.0% 14.7% 33.5% 9.4x 9.0x 8.0x 28.2x 81.2x

Coupa Software, Inc. COUP 1,435 1,670 74.9% NA NA 45.4% 30.3% NM 9.0x 8.2x 6.6x NM NM

Kinaxis, Inc. KXS-CA 1,413 1,494 86.3% 15.9% 306.1% 25.3% 20.6% 16.5% 11.0x 10.6x 8.8x 66.8x 112.5x

SPS Commerce, Inc. SPSC 827 985 76.0% (22.7%) 9.9% 17.6% 17.6% 11.1% 4.0x 3.8x 3.3x 36.1x 108.1x

CommerceHub, Inc. CHUBA-US 1,014 949 92.0% 42.8% NA 20.0% 19.3% 28.3% 9.6x 9.0x 7.8x 34.1x 83.5x

American Software, Inc. AMSWA 256 312 93.9% 2.3% 29.5% (6.0%) 5.2% 15.2% 2.4x 2.4x 2.3x 16.0x 19.9x

Park City Group, Inc. PCYG 237 235 71.5% 3.0% 35.8% 35.2% 41.8% 23.2% 12.5x 10.8x 8.2x 54.1x 62.2x

Amber Road, Inc. AMBR 223 209 62.4% (20.4%) (52.2%) 9.5% 14.6% NM 2.9x 2.8x 2.5x NM NM

Median $1,014 $985 76.0% 2.7% 29.5% 17.6% 17.6% 23.2% 9.0x 8.2x 6.6x 34.1x 81.2x

ENERGY SOFTWARE

Aspen Technology, Inc. AZPN $4,873 $4,667 96.8% 34.2% 69.9% 2.2% 3.6% 45.2% 10.1x 10.0x 9.6x 22.3x 28.8x

Itron, Inc. ITRI 3,264 2,979 99.7% 38.9% 99.9% 0.4% 9.2% 11.2% 1.6x 1.6x 1.5x 14.6x 94.0x

PSI Aktiengesellschaft PSAN-DE 282 321 97.0% 36.6% 38.1% (1.1%) 17.2% 12.2% 1.4x 1.3x 1.2x 11.8x 31.9x

Median $3,264 $2,979 97.0% 36.6% 69.9% 0.4% 9.2% 12.2% 1.6x 1.6x 1.5x 14.6x 31.9x

FINANCIAL SOFTWARE

Fiserv , Inc. FISV $32,336 $27,291 99.5% 29.6% 100.5% 4.0% 6.9% 33.9% 5.8x 5.6x 5.3x 17.1x 30.4x

MSCI Inc. MSCI 12,047 10,621 98.6% 39.3% 151.1% 7.9% 12.3% 50.7% 10.1x 9.5x 8.8x 19.8x 36.9x

SS&C Technologies Holdings, Inc. SSNC 10,690 8,303 99.1% 24.9% 86.8% 25.3% 9.4% 36.5% 6.7x 6.4x 6.0x 18.3x 42.6x

Jack Henry & Associates, Inc. JKHY 7,979 7,953 93.7% 20.2% 85.5% 5.6% 7.3% 35.2% 5.6x 5.5x 5.1x 15.8x 32.4x

Square, Inc. SQ 10,250 7,419 99.3% 147.1% NA 24.9% (39.8%) 1.2% 5.4x 10.9x 8.4x NM NM

Oracle Financial Serv ices Software Ltd. 532466-IN 4,281 4,741 90.1% 14.7% (1.9%) 5.7% 14.5% 40.9% 6.4x 6.0x 5.4x 15.6x 26.0x

Black Knight Financial Serv ices, Inc. BKFS 9,116 2,891 95.1% 5.3% NA 106.2% (42.3%) 26.7% 4.6x 8.4x 7.7x 17.1x 36.4x

Env estnet, Inc. ENV 2,468 2,268 98.1% 39.9% 21.5% 27.2% 18.6% 9.6% 3.9x 3.7x 3.2x 40.9x NM

BlackLine, Inc. BL 1,662 1,800 84.7% NA NA 45.9% 41.2% NM 11.2x 9.7x 7.5x NM NM

Q2 Holdings, Inc. QTWO 1,629 1,749 99.6% 45.3% 189.6% 34.7% 34.5% NM 9.4x 8.4x 6.7x NM NM

Median $8,548 $6,080 98.3% 29.6% 86.8% 25.1% 10.8% 34.6% 6.1x 7.4x 6.3x 17.1x 34.4x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 23




HEALTHCARE IT

Cerner Corporation CERN $24,005 $23,914 98.7% 15.5% 22.2% 7.2% 10.7% 30.6% 4.8x 4.6x 4.3x 15.7x 35.6x

Veev a Systems Inc VEEV 7,950 6,523 82.9% 36.7% 105.7% 30.7% 23.1% 24.7% 12.9x 12.0x 10.0x 52.0x 55.7x

athenahealth, Inc. ATHN 5,245 4,942 78.4% (1.4%) (2.5%) 13.8% 17.2% 17.0% 4.6x 4.3x 3.8x 26.7x 153.3x

Medidata Solutions, Inc. MDSO 4,574 4,604 90.9% 40.0% 77.4% 20.9% 23.5% 15.1% 9.0x 8.3x 7.0x 59.7x 128.0x

Allscripts Healthcare Solutions, Inc. MDRX 4,286 2,566 98.5% 8.0% 5.6% 15.7% 23.9% 15.5% 2.6x 2.4x 2.0x 16.7x NM

HMS Holdings Corp. HMSY 1,893 1,674 89.1% (10.4%) 8.0% 0.6% 24.4% 21.7% 3.8x 3.4x 3.0x 17.7x 51.6x

Ev olent Health Inc. EVH 1,080 1,360 64.7% (27.7%) NA 87.9% 45.6% NM 3.0x 2.5x 1.9x NM NM

Inov alon Holdings, Inc. INOV 2,159 1,066 95.8% 15.9% NA (7.2%) 14.6% 15.0% 5.1x 4.8x 4.4x 34.2x 61.5x

Quality Systems, Inc. QSII 1,001 992 88.7% 39.0% 13.6% 5.2% 3.0% 15.0% 1.9x 1.9x 1.9x 12.9x 43.6x

Model N, Inc. MODN 438 432 99.3% 34.6% 56.9% 19.5% 19.9% NM 3.5x 3.2x 2.8x NM NM

Median $3,223 $2,120 90.0% 15.7% 17.9% 14.8% 21.5% 16.3% 4.2x 3.8x 3.4x 22.2x 55.7x

EDTECH / NON-PROFIT SOFTWARE

Constellation Software Inc. CSU-CA $11,465 $11,821 95.3% 21.0% 113.9% 14.0% 18.0% 25.8% 5.1x 4.7x 4.2x 19.6x 52.6x

Tyler Technologies, Inc. TYL 6,754 6,547 95.5% 1.8% 101.0% 17.5% 14.9% 24.8% 8.5x 8.0x 7.2x 34.2x 47.5x

Blackbaud, Inc. BLKB 4,268 4,214 93.6% 32.3% 124.3% 9.8% 11.5% 17.5% 5.7x 5.4x 5.0x 32.3x 82.0x

2U, Inc. TWOU 2,533 2,911 99.9% 46.4% 269.7% 35.2% 51.9% NM 10.6x 8.9x 6.5x NM NM

NIC Inc. EGOV 1,001 1,128 66.2% (27.0%) 3.2% 7.1% 6.8% 25.9% 3.1x 3.0x 2.8x 11.8x 20.1x

Instructure, Inc. INST 939 982 95.1% 30.7% NA 45.5% 40.8% NM 7.0x 6.1x 4.7x NM NM

K12 Inc. LRN 486 729 84.2% 24.3% 12.3% 1.8% 4.1% 10.8% 0.5x 0.5x 0.5x 5.0x NM

Cambium Learning Group, Inc. ABCD 396 300 96.5% 22.1% 322.3% 4.8% NA 29.0% 2.5x NM NM 8.8x 19.9x

Median $1,767 $2,019 95.2% 23.2% 113.9% 11.9% 14.9% 25.3% 5.4x 5.4x 4.7x 15.7x 47.5x



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

PAGE | 24




LARGE-CAP SAAS (Market Cap > $2Bn)



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

salesforce.com, inc. CRM $66,820 $67,143 95.1% 31.0% 64.7% 25.6% 25.2% 8.0% 7.1x 6.5x 5.4x 89.4x NM

Serv iceNow, Inc. NOW 19,477 20,007 99.1% 48.5% 105.1% 36.7% 43.6% NM 11.9x 10.2x 7.8x NM NM

Check Point Software Technologies Ltd. CHKP 17,520 18,837 97.8% 46.9% 67.8% 7.1% 8.9% 49.5% 9.7x 9.4x 8.7x 19.6x 24.7x

Workday, Inc. WDAY 20,269 13,979 94.6% 14.9% 30.9% 36.9% 32.8% NM 11.0x 9.9x 7.8x NM NM

Veev a Systems Inc VEEV 7,950 6,523 82.9% 36.7% 105.7% 30.7% 23.1% 24.7% 12.9x 12.0x 10.0x 52.0x 55.7x

Guidewire Software, Inc. GWRE 5,292 5,868 95.6% 29.8% 78.7% 21.2% 23.7% 9.2% 10.3x 9.5x 8.0x 111.8x NM

LogMeIn, Inc. LOGM 5,627 5,798 88.8% 21.8% 142.3% 100.1% 82.5% 22.2% 9.1x 5.5x 4.8x 41.1x NM

Ultimate Software Group, Inc. ULTI 5,705 5,666 81.2% (7.2%) 40.1% 23.0% 25.0% 7.6% 6.6x 6.1x 5.1x 87.8x 147.3x

athenahealth, Inc. ATHN 5,245 4,942 78.4% (1.4%) (2.5%) 13.8% 17.2% 17.0% 4.6x 4.3x 3.8x 26.7x 153.3x

Medidata Solutions, Inc. MDSO 4,574 4,604 90.9% 40.0% 77.4% 20.9% 23.5% 15.1% 9.0x 8.3x 7.0x 59.7x 128.0x

Paycom Software, Inc. PAYC 4,375 4,449 97.7% 49.5% 365.6% 34.6% 33.7% 20.2% 11.4x 10.1x 8.1x 56.4x 81.5x

Proofpoint, Inc. PFPT 3,776 3,916 89.9% 16.5% 142.3% 41.3% 38.5% NM 8.5x 7.5x 5.8x NM NM

Atlassian Corp. Plc TEAM 7,261 3,345 89.6% 17.3% NA 35.6% 43.2% NM 11.7x 10.0x 7.7x NM NM

RealPage, Inc. RP 3,233 3,323 91.4% 55.3% 157.3% 18.8% 21.7% 15.7% 5.3x 4.9x 4.2x 33.6x 127.9x

HubSpot, Inc. HUBS 2,878 3,108 99.9% 45.9% NA 41.6% 37.7% NM 9.0x 7.8x 6.2x NM NM

Xero Limited XRO-NZ 2,988 3,091 99.2% 58.7% 33.8% 49.6% 69.2% NM 14.3x 10.7x 7.8x NM NM

Zendesk, Inc. ZEN 2,656 2,969 92.8% (5.2%) 35.1% 39.3% 42.1% NM 7.3x 6.3x 4.8x NM NM

RingCentral, Inc. RNG 3,000 2,784 97.0% 76.5% 231.3% 27.8% 34.0% NM 6.9x 6.1x 4.9x NM NM

Cornerstone Ondemand, Inc. CSOD 2,245 2,348 87.0% (11.6%) 23.5% 14.3% 20.7% NM 5.0x 4.7x 4.0x NM NM

Alarm.com Holdings, Inc. ALRM 2,218 2,129 98.4% 56.5% NA 27.1% 23.2% 9.8% 7.4x 6.8x 5.8x 76.1x 110.0x

Ebix, Inc. EBIX 2,336 2,060 99.8% 14.8% 372.8% 14.4% 20.3% 36.2% 7.3x 6.7x 5.9x 20.1x 20.9x

Box, Inc. BOX 2,487 2,020 92.4% 22.6% NA 29.6% 28.8% NM 5.5x 5.0x 4.1x NM NM

Median $4,475 $4,182 93.7% 30.4% 78.0% 28.7% 27.0% 16.4% 8.8x 7.1x 5.8x 54.2x 110.0x

PAGE | 25




SMALL-CAP SAAS (Market Cap < $2Bn)



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

Qualys, Inc. QLYS $1,769 $1,959 96.7% 35.6% 98.3% 16.5% 20.3% 24.8% 8.4x 7.8x 6.7x 33.8x 48.9x

Q2 Holdings, Inc. QTWO 1,629 1,749 99.6% 45.3% 189.6% 34.7% 34.5% NM 9.4x 8.4x 6.7x NM NM

Callidus Software Inc. CALD 1,432 1,694 90.1% 34.3% 107.5% 20.1% 23.7% NM 6.3x 5.8x 4.9x NM NM

Coupa Software, Inc. COUP 1,435 1,670 74.9% NA NA 45.4% 30.3% NM 9.0x 8.2x 6.6x NM NM

Mimecast Limited MIME 1,502 1,620 94.4% 48.6% NA 35.5% 36.0% 2.1% 7.4x 6.4x 5.2x NM NM

CyberArk Software Ltd. CYBR 1,223 1,425 72.9% (17.3%) 38.4% 24.9% 23.8% 14.9% 5.2x 4.8x 4.0x 34.8x 50.7x

Fiv e9, Inc. FIVN 1,297 1,348 96.4% 52.4% 299.0% 23.9% 22.5% 0.5% 7.2x 6.7x 5.7x NM NM

Yext, Inc. YEXT-US 1,069 1,216 87.9% NA NA 38.5% 66.2% NM 8.6x 6.4x 4.8x NM NM

Hortonworks, Inc. HDP 1,019 1,132 95.8% 103.0% NA 41.6% 36.8% NM 4.7x 4.1x 3.2x NM NM

MINDBODY, Inc. MB 907 1,127 86.9% 31.5% NA 33.2% 34.1% NM 5.7x 5.0x 4.0x NM NM

Benefitfocus, Inc. BNFT 1,098 1,029 79.2% (15.7%) 28.7% 16.8% 14.4% NM 4.4x 4.3x 3.7x NM NM

SPS Commerce, Inc. SPSC 827 985 76.0% (22.7%) 9.9% 17.6% 17.6% 11.1% 4.0x 3.8x 3.3x 36.1x 108.1x

Instructure, Inc. INST 939 982 95.1% 30.7% NA 45.5% 40.8% NM 7.0x 6.1x 4.7x NM NM

Rapid7 Inc. RPD 667 771 91.2% (0.3%) NA 33.7% 27.6% NM 3.7x 3.4x 2.8x NM NM

Workiv a, Inc. WK 811 653 99.0% 15.0% NA 17.5% 18.2% NM 4.2x 3.9x 3.5x NM NM

AppFolio Inc APPF 1,643 644 99.1% 146.7% NA 37.8% 34.4% 10.0% 13.2x 11.8x 9.3x 132.1x NM

Model N, Inc. MODN 438 432 99.3% 34.6% 56.9% 19.5% 19.9% NM 3.5x 3.2x 2.8x NM NM

Apptio, Inc. APTI 600 414 83.5% (14.9%) NA 22.0% 16.7% NM 3.4x 3.3x 2.9x NM NM

Castlight Health, Inc. CSLT 471 338 78.2% 3.4% (63.9%) 32.2% 39.0% NM 4.1x 3.5x 2.8x NM NM

Amber Road, Inc. AMBR 223 209 62.4% (20.4%) (52.2%) 9.5% 14.6% NM 2.9x 2.8x 2.5x NM NM

Median $1,044 $1,078 90.7% 31.1% 47.6% 28.6% 25.7% 10.6% 5.4x 4.9x 4.0x 35.4x 50.7x

PAGE | 26




DATA & ANALYTICS

IT OPERATIONS MANAGEMENT



Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

Verisk Analytics Inc VRSK $16,253 $13,884 94.4% 2.3% 38.4% (3.4%) 7.9% 48.5% 8.0x 7.8x 7.3x 16.5x 29.9x

Splunk Inc. SPLK 8,154 9,299 95.4% 13.2% 24.1% 35.4% 32.1% NM 7.6x 6.8x 5.4x NM NM

Tableau Software, Inc. DATA 4,887 4,730 98.2% 35.5% 10.1% 16.9% 8.2% NM 5.6x 5.5x 5.1x NM NM

Pegasystems Inc. PEGA 4,602 4,506 88.9% 95.5% 206.3% 9.4% 14.3% 9.4% 5.7x 5.4x 4.9x 61.2x 85.4x

Teradata Corporation TDC 3,790 4,431 99.7% 9.0% (18.8%) (11.6%) (3.7%) 17.2% 1.7x 1.8x 1.8x 10.1x 43.9x

Verint Systems Inc. VRNT 3,016 2,696 93.6% 11.2% (22.8%) 1.7% 9.3% 13.9% 2.8x 2.7x 2.5x 19.9x NM

MicroStrategy Incorporated MSTR 847 1,213 61.6% (23.7%) (0.7%) (0.8%) (0.9%) 22.9% 1.7x 1.7x 1.7x 7.2x 14.5x

Talend SA TLND 1,087 1,177 97.6% 56.5% NA 38.5% 42.0% NM 8.6x 7.4x 5.7x NM NM

Inov alon Holdings, Inc. INOV 2,159 1,066 95.8% 15.9% NA (7.2%) 14.6% 15.0% 5.1x 4.8x 4.4x 34.2x 61.5x

PROS Holdings, Inc. PRO 804 781 79.1% 6.7% 4.5% 0.6% 15.1% NM 5.1x 4.8x 4.3x NM NM

Median $3,403 $3,563 94.9% 12.2% 7.3% 1.2% 11.8% 16.1% 5.4x 5.1x 4.6x 18.2x 43.9x

Serv iceNow, Inc. NOW $19,477 $20,007 99.1% 48.5% 105.1% 36.7% 43.6% NM 11.9x 10.2x 7.8x NM NM

Red Hat, Inc. RHT 19,387 19,813 97.5% 37.2% 96.3% 18.3% 18.3% 18.4% 7.3x 6.9x 6.0x 39.8x 65.2x

CA, Inc. CA 13,875 14,138 91.4% 0.9% 23.0% 0.4% 4.5% 36.3% 3.4x 3.3x 3.3x 9.4x 19.0x

Micro Focus International plc MCRO-GB 8,454 13,941 85.7% 12.2% 82.9% 10.9% 191.6% 46.1% 6.1x 2.7x 2.0x 13.3x 88.3x

Arista Networks, Inc. ANET 13,847 13,818 98.1% 122.9% 125.6% 39.5% 39.4% 25.8% 10.2x 8.6x 6.9x 39.6x 46.9x

Citrix Systems, Inc. CTXS 12,028 12,183 80.1% 13.2% 40.2% (8.3%) (6.5%) 28.6% 3.9x 4.3x 4.1x 13.6x 23.8x

VMware, Inc. VMW 37,668 12,051 97.5% 48.9% 17.0% 9.2% 10.0% 25.8% 5.1x 5.2x 4.5x 19.6x 9.1x

F5 Networks, Inc. FFIV 6,745 7,802 80.6% (3.3%) 3.0% 5.4% 5.1% 30.7% 3.2x 3.2x 3.1x 10.6x 19.8x

Software AG SOW-DE 3,659 3,704 98.6% 15.2% 105.1% (2.5%) 13.4% 30.3% 3.8x 3.5x 3.4x 12.6x 24.0x

NetScout Systems, Inc. NTCT 2,848 2,935 84.1% 10.6% (27.1%) 0.6% 7.0% 17.7% 2.5x 2.4x 2.3x 14.3x 162.4x

New Relic, Inc. NEWR 2,447 2,739 97.1% 30.0% NA 41.2% 37.5% NM 8.6x 7.5x 5.9x NM NM

Progress Software Corporation PRGS 1,778 1,869 99.1% 40.3% 59.4% (0.3%) (0.2%) 33.4% 4.5x 4.5x 4.5x 13.3x NM

Radware Ltd. RDWR 583 746 92.0% 22.7% (3.5%) (1.4%) 9.9% NM 2.9x 2.8x 2.6x NM NM

Apptio, Inc. APTI 600 414 83.5% (14.9%) NA 22.0% 16.7% NM 3.4x 3.3x 2.9x NM NM

Median $7,600 $9,926 94.5% 19.0% 49.8% 7.3% 11.7% 29.5% 4.2x 3.9x 3.7x 13.4x 24.0x

PAGE | 27






DATA STORAGE

IT SECURITY

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

IT Operations

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM &

Engineering

SCM & Logistics

Energy

Financial

HCIT

EdTech /

Non-Profit

NetApp, Inc. NTAP $9,226 $11,842 96.7% 22.2% 5.9% 0.7% 3.1% 17.6% 1.7x 1.6x 1.6x 9.5x 20.4x

Iron Mountain, Inc. IRM 16,526 10,372 95.7% 3.7% 20.9% 20.2% 3.0% 30.1% 4.4x 4.4x 4.2x 14.6x 54.7x

CommVault Systems, Inc. CVLT 2,263 2,815 94.1% 14.4% 30.3% 9.1% 12.0% 1.2% 3.4x 3.3x 3.0x NM NM

Nutanix, Inc. NTNX 2,774 2,164 47.9% (39.5%) NA 72.4% 60.5% NM 3.6x 3.0x 2.1x NM NM

Box, Inc. BOX 2,487 2,020 92.4% 22.6% NA 29.6% 28.8% NM 5.5x 5.0x 4.1x NM NM

Pure Storage, Inc. PSTG 2,822 1,533 97.8% 18.0% NA 42.3% 45.6% NM 3.4x 2.9x 2.2x NM NM

Barracuda Networks, Inc. CUDA 1,113 1,291 90.8% (4.9%) (2.1%) 9.5% 9.9% 10.2% 3.1x 3.0x 2.8x 30.3x 127.5x

Carbonite, Inc. CARB 589 612 89.4% 43.2% 119.8% 29.4% 18.5% 4.9% 2.7x 2.4x 2.2x 53.9x NM

Median $2,631 $2,092 93.3% 16.2% 20.9% 24.8% 15.2% 10.2% 3.4x 3.0x 2.5x 22.4x 54.7x

Cisco Systems, Inc. CSCO $133,023 $166,365 97.2% 6.0% 34.4% (2.5%) 0.8% 31.3% 2.8x 2.8x 2.7x 8.8x 17.3x

Symantec Corporation SYMC 23,869 20,209 95.9% 30.7% 42.3% 41.7% 23.5% 18.8% 5.5x 4.8x 4.4x 29.5x NM

Check Point Software Ltd. CHKP 17,520 18,837 97.8% 46.9% 67.8% 7.1% 8.9% 49.5% 9.7x 9.4x 8.7x 19.6x 24.7x

Palo Alto Networks, Inc. PANW 12,205 13,382 87.0% (9.6%) 51.1% 27.8% 25.8% NM 6.9x 6.3x 5.3x NM NM

VeriSign, Inc. VRSN 13,249 10,726 99.6% 36.0% 95.9% 4.0% 3.5% 65.0% 11.5x 11.4x 11.0x 17.7x 23.3x

Trend Micro Incorporated 4704-JP 5,633 6,905 92.2% 42.0% 47.8% 21.3% 5.9% 34.6% 4.3x 4.3x 4.0x 12.6x 27.5x

Fortinet, Inc. FTNT 5,233 6,426 86.2% (3.0%) 44.6% 20.0% 19.6% 10.3% 3.8x 3.5x 3.1x 36.7x 98.5x

Gemalto N.V. GTO-NL 4,931 3,963 65.2% (30.3%) (50.7%) (3.0%) 8.7% 17.7% 1.5x 1.4x 1.3x 8.3x NM

Proofpoint, Inc. PFPT 3,776 3,916 89.9% 16.5% 142.3% 41.3% 38.5% NM 8.5x 7.5x 5.8x NM NM

FireEye, Inc. FEYE 2,852 3,102 95.8% 13.8% (41.7%) 5.3% 8.2% NM 3.9x 3.8x 3.5x NM NM

Qualys, Inc. QLYS 1,769 1,959 96.7% 35.6% 98.3% 16.5% 20.3% 24.8% 8.4x 7.8x 6.7x 33.8x 48.9x

Mimecast Limited MIME 1,502 1,620 94.4% 48.6% NA 35.5% 36.0% 2.1% 7.4x 6.4x 5.2x NM NM

CyberArk Software Ltd. CYBR 1,223 1,425 72.9% (17.3%) 38.4% 24.9% 23.8% 14.9% 5.2x 4.8x 4.0x 34.8x 50.7x

Varonis Systems, Inc. VRNS 1,023 1,154 97.3% 39.2% 99.5% 28.9% 25.6% NM 5.5x 5.0x 4.2x NM NM

Rapid7 Inc. RPD 667 771 91.2% (0.3%) NA 33.7% 27.6% NM 3.7x 3.4x 2.8x NM NM

Cheetah Mobile, Inc. CMCM 139 350 61.0% (32.5%) (52.7%) 5.5% 16.8% 1.4% 0.2x 0.2x 0.2x 14.0x 10.7x

SecureWorks Corp. SCWX 895 137 95.1% (1.3%) NA 18.2% 8.6% NM 2.0x 1.9x 1.8x NM NM

Median $3,776 $3,916 94.4% 13.8% 46.2% 20.0% 19.6% 18.8% 5.2x 4.8x 4.0x 18.6x 26.1x

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Technology, Media & Telecom

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Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

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1. FactSet.

2. PNC Capital Markets.

3. S&P LCD stats.

4. PitchBook.

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