technology, media & telecom update august 2013 · technology, media & telecom update ....

Highlighted M&A Transactions…………… 3

Technology, Media & Telecom Update August 2013

Note: All market data in the following materials is as of

July 31, 2013.

U.S. TMT M&A Overview………………………………………………………………………………………. 4

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

TMT Public Market Overview…………………………………………………………………………………… 6

Public Market Trading Statistics by Vertical

Bellwethers………………………………………………………………………………………………. 7

Data and Information Services…………………………………………………………………………... 7

Internet and Digital Media……………………………………………………………………………….. 8

IT and Tech-Enabled Services…………………………………………………………………………… 9

Software – Application…………………………………………………………………………………. 10

Software – Infrastructure……………………………………………………………………………….. 11

Software as a Service (“SaaS”) ………………………………………………………………………… 12

Selected HW&Co. TMT Transactions………………………………………………………………………….. 13

Contents

For more information, please visit http://www.harriswilliams.com/industries/tmt

• Mobile Ad Revenue Pushes $9B Globally • Top Software Vendors Connecting Smart Buildings to Grid • Forbes: Top 10 2014 HR Technology Trends • Healthcare IT VC Funding Sets Record • Investments in FinTech on the Rise

• Aspect Software acquires Voxeo • Cisco Systems to acquire Sourcefire • Wolter Kluwers to acquire SVENSON • Yahoo to acquire AdMovate • Addnode Group to acquire Joint Collaboration

Harris Williams & Co.’s Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies through dedicated TMT professionals. Below is a list of our senior TMT contacts.

+1 (617) 482-7501 +1 (415) 217-3411 +44 20 7518 8901

Boston San Francisco London

Group Overview

Jeff Bistrong Sam Hendler Derek Swaim Tyler Dewing

Kojo Appenteng

Mike Wilkins Laura Boyd

Thierry Monjauze Red Norrie

Francois Morin

What We’ve Been Reading…………………... 2

UPDATE

• HW&Co. represented VectorLearning, a portfolio company of LLR Partners, in the sale of its Care2Learn division to Relias Learning, a portfolio company of Vista Equity Partners.

• Care2Learn provides online continuing education and healthcare compliance training solutions to the post-acute healthcare and senior care industries.

• The Company’s unique value proposition allows clients to implement time-intensive training in a cost effective manner while complying with regulatory changes and requirements.

• TMT Deal Contact: Mike Wilkins.

Monthly Spotlight

a division of

a portfolio company of

has been acquired by


http://www.harriswilliams.com/industries/tmt

mailto:[email protected]













According to IAB, mobile ad revenue grew 83% to almost $9 billion during 2012. The driving force behind the impressive growth is rapid expansion in the services consumers use on their devices, despite an overall slowdown in smartphone growth. Search remained the biggest ad format in the mobile space, accounting for over half of all revenues. Display ads represent the second largest category, accounting for 38.7% of ad revenue and messaging represents 8.5% and has been in decline. Read the full article here.

Mobile Ad Revenue Pushes $9B Globally in 2013 after 83% Surge in 2012 Tech Crunch 7/9/13

What We’ve Been Reading

2

According to CB Insights, investment in U.S. fintech firms from venture capital, private equity, and angels is on course to exceed $2.5 billion this year. Since 2008, just over $9 billion has been invested in fintech firms across 1,314 deals. Payment focused investors, traditionally the most active in fintech, are giving way to banking and corporate finance outfits. Read the full article here.

Investment in U.S. Fintech Firms on the Rise Finextra 7/12/13

Healthcare IT venture capital investing continues to increase to record-setting levels as 168 deals were funded in Q2’13 compared to 163 in all of 2012. With $623 million invested in Q2’13, VC investment in healthcare IT companies is now on pace to exceed $2 billion by the end of 2013. Investments continue to shift from practice-focused IT towards consumer-focused technologies, such as apps, wearable devices, sensors, remote monitoring, patient engagement, rating/shopping, and social health networks. Read the full article here.

Healthcare IT Venture Capital Funding Sets Yet Another Record Healthcare IT News 7/16/13

HR professionals from around the globe recently convened at the annual Society for Human Resource Management (SHRM) Conference to discuss the top HR technology trends for 2014. Highlighted trends include: HR cloud data security, remote working enabled by virtualization, cloud and business process outsourcing, mobile enterprise applications, and big data-driven HR business intelligence and analytics. Read the full article here.

Top 10 HR Technology Trends for 2014 Forbes 7/30/13

According to Groom, the IT and energy efficiency sectors are converging in an effort to make buildings “smarter” by optimizing their energy efficiency. However, the hype around new technology from cleantech startups and expanding offerings from established firms has created an incredibly confusing market for customers. Groom expects many companies in the $6.2 billion enterprise smart grid sector will either go out of business or get acquired by existing large energy management firms. Read the full article here.

The Top 10 Software Vendors Connecting Smart Buildings to the Smart Grid Greentech Media 7/18/13

http://techcrunch.com/2013/07/09/iab-mobile-ad-revenue-will-pass-9b-globally-in-2013-after-83-surge-in-2012-thanks-to-smartphone-boom/

http://www.finextra.com/News/FullStory.aspx?newsitemid=25015

http://www.healthcareitnews.com/news/vc-funding-sets-yet-another-record?single-page=true

http://scn.sap.com/community/business-trends/blog/2013/07/30/top-10-hr-technology-trends-for-2014

http://www.greentechmedia.com/articles/read/the-top-10-companies-in-enterprise-smart-grid

Highlighted Recent TMT M&A Transactions

3

• Sourcefire is a leading intelligent cyber security software provider, spanning dynamic networks, endpoints, mobile devices, and virtual environments to enterprises and governments.

• The acquisition will accelerate delivery of Cisco’s security strategy of defending, discovering, and remediating the most critical threats.

• Cisco’s all-cash offer of $76 per share represents a 29% premium over Sourcefire’s July 22, 2013 closing share price.

Cisco Systems to acquire Sourcefire

Ent. Value: $2,194 M Revenue Multiple: 8.9x EBITDA Multiple: 118.8x

7/23/13

• Voxeo Corporation is a leading platform for enterprise hosted and on-premise Interactive Voice Response (IVR) solutions and a leading platform provider for communications enabled business processes.

• The acquisition is expected to significantly enhance Aspect's ability to support cloud, hybrid, and premise-based deployments, while adding a market-leading IVR and multi-channel self-service capability to the company's solution portfolio.

Aspect Software acquires Voxeo Corporation

Ent. Value: $145 M Revenue Multiple: NA EBITDA Multiple: NA

7/26/13

• Joint Collaboration AS is a leading provider of SaaS rental solutions primarily for the oil and gas and construction industries.

• Addnode Group is one of the largest providers of business critical support systems for the engineering and construction communities in the Nordics.

• The transaction reflects Addnode’s strategy to be a critical partner for its customers.

Addnode Group to acquire Joint Collaboration

Ent. Value: $190 M Revenue Multiple: 8.3x EBITDA Multiple: NA

7/2/13

• AdMovate, Inc. provides a mobile solution that enables advertisers to add behavioral targeting characteristics to their mobile advertisements.

• AdMovate’s solution will be integrated into Yahoo’s existing advertising platforms. • This acquisition supports Yahoo’s strategy to increase its presence as a mobile

technology company.

Yahoo to acquire AdMovate, Inc.

Ent. Value: NA Revenue Multiple: NA EBITDA Multiple: NA

7/17/13

• SVENSON is the leading regulatory reporting solution suite for financial institutions in Austria. SVENSON’s software enables firms to address the complexities of a rapidly evolving regulatory environment.

• The acquisition will enable the combined company to help banks and insurance companies in Austria meet increasingly challenging national and international regulatory requirements.

Wolters Kluwer Financial Services to acquire SVENSON

Ent. Value: NA Revenue Multiple: NA EBITDA Multiple: NA

7/19/13

All Acquisitions Private Equity Acquisitions

Segment Q4'12 Q1'13 Q2'13 Q3'13 Total Q4'12 Q1'13 Q2'13 Q3'13 Total

Data and Information Services 27 18 20 11 76 11% 6% 5% -- 9%

Internet and Digital Media 199 131 155 67 552 8% 7% 6% 9% 11%

IT and Tech-Enabled Services 94 62 63 12 231 10% 5% 5% -- 8%

Software - Application 152 105 120 50 427 5% 7% 4% 12% 7%

Software - Infrastructure 39 17 24 13 93 8% 6% 21% -- 11%

Software - SaaS 36 23 29 6 94 6% -- 3% 17% 7%

Total 547 356 411 159 1,473 7% 6% 6% 8% 9%

Summary M&A

Statistics

LTM M&A Volume and Revenue Multiples LTM M&A Volume by Segment

U.S. TMT M&A Overview

Note: Includes announced or closed transactions over the last three calendar years.

Last Three Years M&A Transaction Volume

Private Equity Activity by Segment

4

Note: Includes announced or closed transactions over the last twelve months.

Note: Includes all announced or closed transactions over the last four quarters.

1.9 x

3.4 x

2.0 x

2.4 x2.8 x

4.1 x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

4.0 x

4.5 x

0

100

200

300

400

500

600

700

800

Data and Information

Services

Internet and Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

LTM

Revenue M

ultipleTran

sact

ion

Volu

me

M&A Transaction Volume Median LTM Revenue Multiple


Services5%


37%


15%


31%


9%

Software –SaaS6%

111

826

350

638

159102112

827

348

657

139 140

49

353

137

275

54 58

0

100

200

300

400

500

600

700

800

900

Data and Information Services

Internet & Digital Media IT and Tech-Enabled Services



Software –SaaS

Tra

nsac

tion

Vol

ume

2011 M&A Transaction Volume 2012 M&A Transaction Volume 2013 YTD M&A Transaction Volume

Recent IPO Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last twelve months. * Company has since been acquired.

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 +

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

2006 2007 2008 2009 2010 2011 2012 20130%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013

($ in millions) IPO Details Financials and Trading Multiples at IPO (LTM)Gross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA08/08/13 Cvent, Inc. 117.6$ 0.0% 56.8% 89.6$ 10.7% 47.2% 13.8x NM08/06/13 YuMe, Inc. 46.1 0.0% (0.3%) 123.3 7.1% 79.8% 2.7x 38.5x07/25/13 Liquid Holdings Group, LLC 28.6 0.0% (16.7%) 5.3 NA NA 0.0x 0.0x06/26/13 Tremor Video, Inc. 75.0 0.0% (20.2%) 112.7 NM 24.8% 3.7x NM06/25/13 Luxoft Holding, Inc. 69.6 50.0% 41.9% 314.6 16.6% 16.0% 2.2x 13.0x06/20/13 Gogo Inc. 187.0 0.0% (35.2%) 250.0 3.6% 38.9% 8.3x NM06/11/13 Gigamon LLC (nka:Gigamon Inc.) 128.3 33.3% 85.0% 105.8 8.3% 41.6% 7.7x 92.9x06/06/13 Textura Corporation 75.0 0.0% 121.7% 27.3 NM 159.9% 17.3x NM06/06/13 LightInTheBox Holding Co., Ltd. 78.9 0.0% 120.4% 236.4 2.1% 88.9% 2.3x NM05/22/13 ChannelAdvisor Corporation 80.5 0.0% 78.6% 56.3 NM 29.3% 6.7x NM05/16/13 Marketo, Inc. 78.8 5.1% 165.8% 65.9 NM 103.6% 12.0x NM05/16/13 Tableau Software, Inc. 254.2 39.0% 118.8% 143.1 0.1% 129.5% 12.3x NM05/08/13 Cyan, Inc. 88.0 0.0% (17.7%) 108.0 NM 167.2% 5.5x NM05/02/13 Qiwi plc 212.5 100.0% 96.1% 307.0 20.8% 20.8% 1.7x 9.0x04/18/13 Blackhawk Network Holdings, Inc. 230.0 100.0% 7.9% 992.6 9.0% 32.0% 1.2x 12.8x04/17/13 Intelsat Global Holdings S.A. 347.8 0.0% 33.8% 2,621.1 76.4% 1.1% 6.9x 9.0x04/11/13 Rally Software Development Corp. 84.0 0.0% 109.6% 56.8 NM 37.6% 6.8x NM04/11/13 EVERTEC, Inc. 505.3 75.3% 21.1% 346.5 44.9% 6.2% 6.5x 14.5x03/22/13 West Corporation 425.5 0.0% 16.7% 2,638.0 25.2% 5.9% 2.1x 8.1x03/21/13 Marin Software Incorporated 105.0 0.0% (10.5%) 59.6 NM 64.9% 8.1x NM03/20/13 Model N, Inc. 104.5 11.0% 35.5% 88.5 1.7% 35.9% 4.8x NM03/12/13 Silver Spring Networks, Inc. 80.8 0.0% 78.5% 196.7 NM (17.0%) 4.8x NM03/04/13 Professional Diversity Network LLC 21.0 0.0% (37.5%) 6.2 41.3% 10.5% 4.4x 9.8x02/14/13 Xoom Corporation 101.2 17.5% 89.1% 80.0 NM 60.0% 9.1x NM02/07/13 Health Insurance Innovations, Inc. 65.3 0.0% (14.8%) 41.9 10.7% 40.4% 1.7x 14.7x01/18/13 Cyrusone Inc. 313.5 0.0% 3.5% 220.8 48.3% 21.5% 5.3x 10.6x11/15/12 Ruckus Wireless, Inc. 126.0 16.7% (10.1%) 193.5 12.0% 156.4% 4.9x 40.6x10/15/12 Workday, Inc. 637.0 0.0% 165.6% 199.1 NM 127.9% 41.3x NM10/10/12 Shutterstock, Inc. 76.5 0.0% 233.9% 155.2 17.6% 87.0% 4.8x 28.9x10/09/12 Ambarella, Inc. 36.0 18.3% 180.3% 107.2 16.5% 13.2% 0.9x 5.2x10/04/12 Fleetmatics Group Limited 132.8 20.0% 148.0% 117.5 16.6% 81.6% 7.3x 43.1x10/02/12 LifeLock, Inc. 141.3 1.3% 36.0% 250.6 7.7% 54.4% 3.9x 48.5x09/27/12 Qualys, Inc. 90.9 11.6% 50.4% 83.4 8.4% 27.5% 4.8x 57.6x09/19/12 Trulia, Inc. 102.0 16.7% 158.8% 51.3 NM 159.1% 12.3x NM08/01/12 Eloqua* 92.0 12.5% NA 84.7 1.1% 42.3% 4.8x NM

Median 101.2$ 0.0% 46.2% 112.7$ 10.7% 41.0% 4.9x 13.8x

0%

20%

40%

60%

80%

100%

120%

140%

Data and Information Services

Internet & Digital Media




Software –SaaS

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 Overview

6

LTM Revenue LTM EBITDAIndustry Segment 1 Month 12 Month Growth Margin LTM 2013P 2014P LTM 2013P 2014P

Bellwethers 2.7% 17.5% 9.5% 30.0% 2.2x 2.2x 2.1x 8.2x 7.0x 6.5x

Data and Information Services 7.3% 38.6% 7.6% 26.9% 3.3x 3.2x 3.1x 11.3x 10.5x 10.0xDiversified Information Services 9.1% 38.1% 8.9% 28.2% 3.6x 3.3x 3.2x 11.7x 10.4x 10.0xFinancial Data and Media 5.7% 39.0% 7.1% 37.9% 4.7x 4.6x 4.4x 11.7x 11.0x 10.3xLender/Mortgage/Real Estate Data and Processing 10.9% 49.1% 8.4% 19.5% 2.4x 2.4x 2.4x 10.6x 8.3x 8.1xMarket Data and Research (2.3%) 25.8% 9.7% 13.9% 1.6x 1.5x 1.4x 11.2x 14.4x 10.0x

Internet & Digital Media 7.4% 48.5% 14.1% 18.5% 2.9x 2.6x 2.5x 12.5x 10.7x 9.9xAdvertising & Marketing 12.0% 26.9% 24.1% 24.3% 3.9x 3.5x 3.0x 20.2x 15.4x 13.4xContent Delivery & Management 4.0% 38.5% 3.4% 22.8% 2.2x 2.0x 1.9x 12.5x 8.5x 7.7xContent & Services 11.9% 51.8% 15.6% 15.0% 3.5x 3.2x 2.7x 10.8x 13.2x 13.8xDiversified Media 5.9% 54.7% 6.0% 24.7% 2.4x 2.4x 2.3x 9.8x 9.7x 9.0xe-Commerce 1.0% 59.5% 19.8% 17.3% 3.1x 3.0x 2.7x 16.9x 12.7x 10.6x

IT and Tech-Enabled Services 9.4% 46.1% 9.6% 16.1% 1.5x 1.7x 1.4x 10.7x 8.9x 8.5xGovernment IT & BPO 7.5% 47.9% 5.1% 9.0% 0.6x 0.6x 0.6x 6.8x 7.8x 7.1xIT Services 5.6% 41.8% 3.2% 12.4% 0.6x 0.7x 0.7x 6.5x 6.1x 5.8xOffshore BPOs 12.8% 43.5% 12.1% 20.8% 2.5x 2.2x 2.0x 11.6x 11.1x 9.9xOnshore BPOs 9.8% 55.8% 5.2% 13.4% 1.4x 1.4x 1.3x 9.3x 8.1x 7.7x

Software – Application 6.9% 34.4% 11.7% 20.5% 3.7x 3.6x 3.3x 14.1x 11.7x 10.1xCustomer Engagement/Call Center Management 3.0% 13.3% 5.6% 18.6% 2.0x 1.9x 1.7x 12.0x 7.9x 7.1xEnterprise Software 3.7% 30.3% 8.3% 25.2% 4.1x 3.8x 3.5x 12.0x 12.1x 10.4xHuman Capital Management 8.2% 59.4% 43.1% 11.6% 13.2x 10.4x 7.9x 69.5x 39.1x 30.3xProduct Lifecycle Management/Technical Design 6.4% 32.6% 10.5% 22.2% 2.9x 2.7x 2.5x 13.3x 9.8x 9.0xVertically Focused - Financial Technology 3.8% 45.2% 13.2% 20.2% 3.7x 3.5x 3.3x 15.6x 11.6x 10.0xVertically Focused - Healthcare IT 16.9% 25.7% 12.3% 24.9% 3.2x 3.2x 3.0x 14.0x 13.9x 11.2xVertically Focused - Public Sector 7.8% 44.5% 22.3% 19.8% 3.7x 3.6x 3.3x 17.6x 16.1x 14.5x

Software – Infrastructure 10.3% 26.0% 6.0% 22.1% 3.0x 3.0x 2.9x 12.3x 10.1x 9.2xEnterprise IT Management 8.8% 19.7% 7.7% 20.4% 3.0x 3.0x 3.0x 16.5x 13.5x 10.0xEnterprise Storage 10.9% 23.0% 5.6% 19.7% 2.2x 2.1x 1.7x 12.3x 7.0x 6.3xSecurity 12.7% 41.4% 8.8% 32.8% 5.1x 4.9x 4.5x 9.8x 9.2x 9.1x

Software – SaaS 8.4% 52.9% 27.2% 8.9% 8.3x 7.3x 5.9x 26.0x 28.5x 23.3x

NASDAQ 6.6% 27.1%

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

7

($ in millions) Stock Price CY2013P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY2013P LTM CY2013P

Diversified Information Services

Thomson Reuters Corporation 28,201.8$ 33.99$ 94.6% (4.5%) 16.4% 2.6x 2.7x 11.5x 10.1xExperian plc 18,404.7 18.72 95.6% 5.0% 9.3% 4.5x 4.4x 13.5x 12.6xReed Elsevier plc 15,084.7 12.89 99.4% (0.7%) 0.7% NA 1.4x NA 4.4xVerisk Analytics, Inc. 10,807.0 64.36 98.1% 12.4% 13.4% 7.3x 7.0x 15.8x 15.5xAlliance Data Systems Corporation 9,728.0 197.78 98.9% 17.7% 22.4% 4.6x 4.2x 15.0x 13.3xEquifax Inc. 7,668.8 63.23 98.9% 7.2% 23.4% 3.9x 3.9x 12.6x 11.2xIHS Inc. 7,367.8 109.78 92.3% 10.3% 57.5% 5.1x 4.8x 22.7x 14.9xWolters Kluwer NV 7,118.8 24.08 99.0% 0.4% (0.6%) 2.1x 2.1x 8.5x 8.4xInforma plc 4,808.3 7.97 97.6% (0.7%) 3.0% 3.3x 3.3x 10.9x 10.7xNeuStar, Inc. 3,609.5 56.08 97.9% 8.8% 20.1% 4.5x 4.3x 10.0x 8.7xUBM plc 2,636.9 10.80 89.5% 7.2% 8.3% 2.8x 2.6x 12.0x 10.4xAcxiom Corporation 1,906.8 25.77 97.4% (1.2%) (7.2%) 1.8x 1.8x 9.5x 9.4xFair Isaac Corporation 1,758.6 49.96 97.5% 11.3% 16.5% 2.9x 2.8x 11.1x 9.6x

Median 7,367.8$ 97.6% 7.2% 13.4% 3.6x 3.3x 11.7x 10.4x

Financial Data and Media

Moody's Corporation 14,936.5$ 67.77$ 97.2% 8.0% 11.6% 5.1x 5.1x 11.7x 11.3xFactSet Research Systems Inc. 4,733.4 109.18 98.6% 6.3% 8.6% 5.3x 5.1x 13.9x 13.2xMSCI Inc. 4,146.6 35.05 95.0% 6.8% 2.7% 4.7x 4.6x 10.6x 10.7xDun & Bradstreet Corporation 4,139.6 103.63 92.4% (0.4%) 5.0% 3.2x 3.2x 9.9x 9.3xMorningstar Inc. 3,514.7 76.22 95.5% 7.0% NA 4.7x 4.5x 15.2x NA

Median 4,146.6$ 95.5% 6.8% 6.8% 4.7x 4.6x 11.7x 11.0x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Information Services, Inc. 12,607.4$ 43.16$ 93.9% 4.6% 13.1% 2.8x 2.8x 10.3x 9.1xCoStar Group Inc. 4,481.2 156.55 97.3% 26.2% 93.2% 10.8x 10.0x 60.8x 35.1xLender Processing Services, Inc. 2,785.4 32.68 95.7% (7.4%) 48.6% 1.9x 2.0x 10.9x 7.5xCoreLogic, Inc. 2,667.5 27.90 94.6% 2.3% 43.8% 1.9x 2.0x 9.0x 6.8x

Median 3,633.3$ 95.1% 3.5% 46.2% 2.4x 2.4x 10.6x 8.3x

Market Data and Research

Gartner Inc. 5,626.0$ 60.01$ 97.0% 11.2% 31.8% 3.3x 3.1x 19.6x 15.6xIpsos SA 1,607.1 35.48 80.0% 0.1% 11.0% 1.0x 1.0x 8.7x 7.7xForrester Research Inc. 720.1 35.08 88.2% 1.7% (27.0%) 1.6x 1.5x 11.2x 14.4x

Median 1,607.1$ 88.2% 1.7% 11.0% 1.6x 1.5x 11.2x 14.4x

Total Data and Information Median 4,733.4$ 97.0% 6.3% 12.3% 3.3x 3.2x 11.3x 10.5x


Services



Bellwethers

Apple Inc. 411,122.1$ 452.53$ 64.2% 3.1% (9.2%) 1.7x 1.7x 5.0x 5.2xGoogle Inc. 295,639.4 887.75 95.7% 17.1% 30.7% 4.4x 4.2x 14.6x 11.6xMicrosoft Corporation 265,225.8 31.84 87.4% 11.5% 12.0% 2.5x 2.4x 6.5x 6.0xInternational Business Machines Corporation 213,651.9 195.04 90.3% (2.1%) 2.3% 2.3x 2.3x 8.9x 8.5xOracle Corporation 149,806.6 32.35 88.8% 1.6% 6.7% 3.7x 3.6x 7.9x 7.4xSamsung Electronics Co. Ltd. 149,015.0 1,138.62 80.8% 16.2% 24.8% 0.6x 0.5x 2.4x 2.1xAmazon.com Inc. 137,622.6 301.22 96.0% 21.8% 97.7% 2.0x 1.8x 45.6x 26.9xCisco Systems, Inc. 136,761.6 25.59 97.9% 5.3% 18.6% 2.2x 2.1x 7.9x 6.6xIntel Corporation 116,255.0 23.34 86.6% (0.7%) (9.3%) 2.0x 1.9x 5.1x 5.1xQUALCOMM Inc. 110,751.3 64.56 94.3% 25.7% 36.1% 3.5x 3.1x 9.9x 8.2xSAP AG 87,113.2 73.05 84.7% 7.2% 10.0% 4.1x 3.9x 12.0x 11.1xeBay Inc. 66,914.4 51.69 89.1% 14.9% 32.3% 3.9x 3.6x 13.2x 10.7xEMC Corporation 54,414.3 26.15 92.8% 8.1% 44.3% 2.0x 1.9x 8.5x 6.1xHewlett-Packard & Company 49,525.2 25.68 96.1% (7.1%) (0.2%) 0.5x 0.6x 4.5x 4.4x

Total Comp Set Median 137,192.1$ 89.7% 7.6% 15.3% 2.2x 2.2x 8.2x 7.0x



Bellwethers


8



Advertising & Marketing

Google Inc. 295,639.4$ 887.75$ 95.7% 17.1% 30.7% 4.4x 4.2x 14.6x 11.6xBaidu, Inc. 46,278.7 132.31 98.2% 37.6% 9.4% 10.0x 8.5x 19.8x 19.0xYahoo! Inc. 30,411.2 28.09 94.2% (9.7%) 21.8% 4.8x 5.1x 17.9x 14.3xYandex N.V. 10,611.6 32.51 77.4% 38.7% 46.2% 9.5x 8.0x 21.5x 17.5xGroupon, Inc. 5,858.1 8.86 93.9% 9.4% 95.8% 1.9x 1.8x 32.2x 15.4xAOL Inc. 2,853.3 36.84 83.9% 2.3% (7.6%) 1.1x 1.1x 5.2x 5.7xValueClick, Inc. 1,862.7 24.44 75.8% 12.0% 25.0% 2.7x 2.5x 8.4x 7.3xBankrate, Inc. 1,817.0 17.93 90.8% (0.2%) 3.9% 4.5x 4.2x 20.6x 16.0xMillennial Media Inc. 788.2 9.91 58.8% 54.7% NM 3.4x 2.4x NM 37.6xBazaarvoice, Inc. 775.9 10.48 63.2% 21.7% NM 4.2x 3.8x NM NMResponsys, Inc. 715.3 14.49 96.0% 18.0% 44.5% 3.5x 3.2x 31.3x 21.9xConstant Contact, Inc. 588.8 19.19 90.4% 13.3% 126.2% 1.8x 1.7x 25.0x 10.9x

Median 2,358.0$ 90.6% 15.2% 27.9% 3.9x 3.5x 20.2x 15.4x

Content Delivery & Management

Akamai Technologies, Inc. 8,401.6$ 47.20$ 97.4% 13.3% 34.3% 5.0x 4.7x 13.2x 10.8xLevel 3 Communications, Inc. 4,882.6 22.05 87.3% (0.8%) 13.2% 2.0x 2.0x 8.9x 8.0xMentor Graphics Corporation 2,317.1 20.53 98.8% 6.2% 28.0% 2.2x 2.0x 12.5x 8.5xRovi Corporation 2,269.5 22.53 84.9% (0.8%) 26.8% 4.5x 4.4x 13.3x 9.4xEarthLink Inc. 645.4 6.27 85.2% (7.1%) (17.6%) 0.9x 0.9x 4.6x 5.0x

Median 2,317.1$ 87.3% (0.8% ) 26.8% 2.2x 2.0x 12.5x 8.5x

Content & Services

Facebook, Inc. 89,619.8$ 36.80$ 81.8% 43.4% 240.7% 13.3x 11.2x 29.5x 20.2xLinkedIn Corporation 22,491.1 203.79 97.3% 54.3% 191.2% 17.4x 14.4x NM 59.1xNetflix, Inc. 14,405.6 244.48 90.4% 20.3% 389.2% 3.5x 3.2x 80.4x 29.6xVeriSign, Inc. 6,868.9 47.84 95.4% 9.9% 20.1% 6.7x 6.5x 10.8x 10.1xIAC/InterActiveCorporation 4,200.6 50.61 91.1% 14.6% 52.0% 1.3x 1.2x 8.4x 6.3xPandora Media, Inc. 3,205.9 18.34 89.3% 48.0% NM 6.6x 5.0x NM NMAOL Inc. 2,853.3 36.84 83.9% 2.3% (7.6%) 1.1x 1.1x 5.2x 5.7xYelp, Inc. 2,726.1 41.80 97.6% 59.9% NM 14.7x 12.0x NM NMZillow, Inc. 2,551.2 73.88 93.3% 56.8% 80.2% 17.6x 12.8x NM NMZynga, Inc. 2,396.9 2.98 73.9% (32.3%) (61.0%) 0.8x 1.0x 5.1x 38.9xWebMD Health Corp. 1,620.6 33.01 93.6% 8.1% 355.2% 2.9x 2.7x 26.1x 13.2xAngie's List, Inc. 1,285.6 22.02 77.8% 59.3% NM 6.2x 5.0x NM NMTrulia, Inc. 1,203.0 37.26 97.5% 63.7% NM 10.7x 8.9x NM 81.9xcomScore, Inc. 1,032.7 28.96 97.6% 11.8% 197.6% 3.6x 3.4x 44.5x 17.1xMonster Worldwide, Inc. 646.6 5.72 63.2% (6.5%) 9.1% 0.8x 0.8x 5.3x 4.5xDemand Media, Inc. 566.5 6.54 52.3% 10.7% 59.6% 1.2x 1.1x 6.5x 4.2xMove, Inc. 559.8 13.89 97.7% 13.0% 91.7% 2.4x 2.3x 35.1x 16.9xThe Active Network, Inc. 532.0 8.53 59.4% 10.5% NM 1.0x 0.9x 45.5x 8.6xDice Holdings, Inc. 511.9 8.67 83.1% 7.3% 3.1% 2.4x 2.4x 7.5x 6.8x

Median 2,396.9$ 90.4% 13.0% 69.9% 3.5x 3.2x 10.8x 13.2x

Diversified Media

Comcast Corporation 118,331.0$ 45.08$ 98.8% 2.8% 5.9% 2.4x 2.4x 7.5x 7.4xWalt Disney Company 116,430.8 64.65 95.2% 7.3% 17.9% 2.9x 2.8x 11.4x 10.0xTime Warner Inc. 58,037.2 62.26 98.7% 2.8% 2.3% 2.5x 2.5x 9.8x 9.8xViacom, Inc. 34,706.2 72.77 97.2% 5.3% 12.8% 3.2x 3.1x 10.6x 9.7xCBS Corporation 31,958.0 52.84 98.1% 6.1% 9.6% 2.6x 2.5x 10.5x 10.0xLiberty Interactive Corporation 12,963.8 24.46 98.8% 3.5% 9.3% 2.0x 2.0x 11.0x 10.6xScripps Networks Interactive, Inc. 10,429.8 70.77 96.4% 9.2% 7.4% 4.8x 4.5x 10.8x 10.1xNews Corporation 9,223.8 15.93 97.3% 1.3% 47.5% 0.6x 0.6x 8.0x 5.5xGannett Co., Inc. 5,896.1 25.76 95.8% (2.2%) (2.2%) 1.4x 1.4x 6.7x 6.9xMeredith Corporation 2,113.9 47.52 97.5% 2.4% (5.1%) 1.7x 1.7x 9.1x 9.7xThe New York Times Company 1,813.3 12.18 94.9% (1.3%) (6.5%) 0.9x 0.9x 6.4x 7.0x

Median 12,963.8$ 97.3% 2.8% 7.4% 2.4x 2.4x 9.8x 9.7x




9

e-Commerce

Amazon.com Inc. 137,622.6$ 301.22$ 96.0% 21.8% 97.7% 2.0x 1.8x 45.6x 26.9xeBay Inc. 66,914.4 51.69 89.1% 14.9% 32.3% 3.9x 3.6x 13.2x 10.7xpriceline.com Inc. 45,167.1 875.67 94.5% 25.8% 29.9% 7.5x 6.3x 21.0x 16.7xRakuten, Inc. 17,716.5 13.46 97.1% 13.4% 24.7% 3.1x 3.0x 13.5x 11.9xExpedia Inc. 6,409.4 47.13 69.2% 16.9% 28.1% 1.3x 1.2x 9.2x 6.8xMercadolibre, Inc. 5,184.9 117.43 91.4% 24.1% 21.3% 11.9x 10.7x 33.5x 29.4xCtrip.com International Ltd. 4,749.5 36.60 97.7% 23.1% 43.4% 5.0x 4.6x 30.9x 21.8xLive Nation Entertainment, Inc. 3,146.0 16.38 97.7% 3.5% 17.2% 0.6x 0.6x 9.0x 7.8xHomeAway, Inc. 2,567.1 30.11 87.8% 21.5% 87.6% 7.1x 6.5x 39.1x 23.3xShutterfly, Inc. 2,017.2 53.59 91.7% 20.4% 77.3% 2.7x 2.4x 22.8x 12.9xVistaprint N.V. 1,671.7 50.98 92.7% 10.8% 40.5% 1.6x 1.5x 16.7x 12.4xOpenTable, Inc. 1,450.8 63.68 88.2% 16.3% 80.2% 7.8x 7.2x 25.4x 16.4xDemandware, Inc. 1,339.8 44.42 93.1% 25.0% NM 14.8x 12.5x NM NMOrbitz Worldwide, Inc. 971.2 9.21 83.1% 6.8% 31.9% 1.5x 1.4x 11.3x 8.6xLiquidity Services, Inc. 901.3 28.50 49.6% 2.2% 11.6% 1.7x 1.7x 8.8x 7.7xStamps.com Inc. 615.8 39.86 92.7% 11.6% 37.0% 4.5x 4.3x 17.0x 15.6xDigital River Inc. 599.2 16.99 83.7% 3.4% (19.3%) 0.7x 0.7x 11.5x 9.3x

Median 2,567.1$ 91.7% 16.3% 32.1% 3.1x 3.0x 16.9x 12.7x

Total Internet and Digital Media Median 2,789.7$ 92.9% 11.2% 27.4% 2.9x 2.6x 12.5x 10.7x




(Continued)



Government IT & BPO

SAIC, Inc. 5,237.1$ 15.29$ 98.0% (7.1%) (14.6%) 0.5x 0.6x 6.8x 7.8xMAXIMUS, Inc. 2,569.1 37.61 92.4% 25.4% 33.5% 2.0x 1.7x 12.6x 10.9xTyler Technologies, Inc. 2,376.1 74.62 94.5% 13.7% 25.2% 6.1x 5.7x 30.8x 27.3xCACI International Inc. 1,531.7 66.40 98.5% (3.4%) (5.2%) 0.6x 0.6x 6.5x 6.8xManTech International Corporation 1,097.6 29.54 98.9% (4.7%) (22.7%) 0.4x 0.4x 5.9x 6.4x

Median 2,376.1$ 98.0% (3.4% ) (5.2% ) 0.6x 0.6x 6.8x 7.8x

IT Services

Accenture plc 47,596.3$ 73.81$ 87.6% 2.0% 10.4% 1.5x 1.5x 9.6x 8.9xCap Gemini S.A. 8,605.7 54.62 96.3% (0.6%) 5.6% 0.6x 0.6x 6.5x 6.1xAtos S.A. 6,442.7 75.00 95.4% (0.6%) 5.0% 0.6x 0.6x 5.2x 5.0xSapient Corporation 1,913.2 13.70 97.4% 11.4% 36.0% 1.5x 1.4x 11.9x 8.9xTieto Oyj 1,381.9 19.05 77.9% (6.2%) 0.8% 0.6x 0.7x 4.7x 5.2xEPAM Systems, Inc. 1,311.8 28.95 98.4% 24.5% 23.9% 2.6x 2.2x 14.6x 12.3xUnisys Corporation 1,132.1 25.94 91.8% (6.6%) 4.0% 0.3x 0.3x 3.9x 2.7x

Median 1,913.2$ 95.4% (0.6% ) 5.6% 0.6x 0.7x 6.5x 6.1x

Offshore BPOs

Tata Consultancy Services Ltd. 58,836.6$ 30.06$ 99.2% 23.4% 21.9% 5.2x 4.7x 17.9x 16.4xInfosys Technologies Ltd. 28,079.4 49.14 98.6% 5.6% (10.8%) 3.1x 3.1x 11.3x 12.3xCognizant Technology Solutions 21,834.0 72.39 89.3% 17.6% 16.3% 2.5x 2.2x 12.1x 10.8xWipro Ltd. 17,729.4 7.24 94.5% 15.2% 11.9% 2.5x 2.4x 11.9x 11.5xHCL Technologies Ltd. 10,823.0 15.53 98.8% 22.6% 40.5% 2.4x 2.2x 11.2x 9.7xGenpact Ltd. 4,663.2 20.39 95.7% 14.9% 13.4% 2.5x 2.3x 13.7x 12.6xSyntel, Inc. 3,009.0 71.78 98.6% 12.2% 14.2% 3.4x 3.2x 10.7x 10.1xSatyam Computer Services Limited 2,244.5 1.91 87.9% 9.1% 14.8% 1.2x 1.3x 5.8x 5.9xWNS Holdings Ltd. 1,007.3 19.84 97.0% 2.0% 12.7% 2.1x 2.2x 12.9x 11.5xExlservice Holdings, Inc. 916.6 28.00 84.9% 8.5% 11.6% 1.7x 1.7x 9.5x 8.6x

Median 7,743.1$ 96.4% 13.6% 13.8% 2.5x 2.2x 11.6x 11.1x

Onshore BPOs

CGI Group, Inc. 10,645.6$ 34.48$ 97.6% 62.2% 71.6% 1.5x 1.4x 11.4x 9.3xAlliance Data Systems Corporation 9,728.0 197.78 98.9% 17.7% 22.4% 4.6x 4.2x 15.0x 13.3xComputer Sciences Corporation 7,090.4 47.66 94.2% (8.9%) 11.0% 0.5x 0.5x 3.9x 3.9xDST Systems Inc. 3,032.3 70.03 96.8% (24.1%) 19.1% 1.4x 1.8x 9.3x 8.1xConvergys Corporation 1,963.9 18.93 97.2% 2.5% 7.4% 0.7x 0.7x 6.2x 5.9x

Median 7,090.4$ 97.2% 2.5% 19.1% 1.4x 1.4x 9.3x 8.1x

Total IT Services Median 3,032.3$ 96.8% 8.5% 12.7% 1.5x 1.7x 10.7x 8.9x

IT and Tech-Enabled

Services


Software – Application

10



Customer Engagement/Call Center Management

Amdocs Limited 6,192.6$ 38.47$ 98.8% 3.7% 18.2% 1.5x 1.5x 8.2x 7.1xNuance Communications, Inc. 5,961.0 18.76 72.5% 14.5% 89.4% 4.0x 3.6x 19.6x 10.2xNICE Systems Ltd. 2,318.3 38.32 94.0% 8.4% 63.2% 2.0x 1.9x 12.0x 7.9xVerint Systems Inc. 1,885.9 35.78 96.6% 7.6% 35.0% 2.6x 2.5x 14.1x 10.1xComverse, Inc. 695.6 31.32 96.8% (7.2%) 73.5% 0.6x 0.7x 5.9x 5.9x

Median 2,318.3$ 96.6% 7.6% 63.2% 2.0x 1.9x 12.0x 7.9x

Enterprise Software

Oracle Corporation 149,806.6$ 32.35$ 88.8% 1.6% 6.7% 3.7x 3.6x 7.9x 7.4xSAP AG 87,113.2 73.05 84.7% 7.2% 10.0% 4.1x 3.9x 12.0x 11.1xSalesforce.com, Inc 25,809.7 43.75 92.0% 29.8% 602.9% 7.5x 6.2x NM 41.3xAdobe Systems Inc. 23,746.9 47.28 97.2% (6.7%) (18.6%) 5.0x 5.2x 18.9x 17.8xNetSuite Inc. 6,965.0 93.89 94.0% 32.5% NM 18.9x 16.5x NM NMSage Group plc 5,892.6 5.32 89.6% 2.4% 2.3% 3.0x 2.9x 10.1x 9.9xOpen Text Corporation 4,165.7 70.53 95.6% 9.9% 19.2% 3.1x 3.0x 10.4x 9.6xInformatica Corporation 4,125.3 38.17 95.7% 13.8% 50.3% 4.1x 3.8x 21.0x 13.0xManhattan Associates, Inc. 1,706.0 88.34 98.8% 9.2% 26.5% 4.1x 3.9x 17.3x 14.8xMicroStrategy Inc. 1,073.7 95.01 69.3% (4.2%) (61.9%) 1.3x 1.3x 25.8x 39.8xJive Software, Inc. 922.8 13.42 66.3% 27.7% NM 5.9x 5.3x NM NMExact Holding NV 535.7 23.48 98.6% 0.1% 23.5% 1.7x 1.6x 8.9x 7.2x

Median 5,029.1$ 93.0% 8.2% 14.6% 4.1x 3.8x 12.0x 12.1x

Human Capital Management

Workday, Inc. 11,814.2$ 68.29$ 97.9% 60.4% NM 35.8x 25.1x NM NMConcur Technologies, Inc. 4,966.0 88.89 98.9% 24.2% 182.1% 9.1x 8.0x NM 36.4xThe Ultimate Software Group, Inc. 3,740.5 135.30 97.4% 23.1% 111.7% 9.9x 8.9x 69.5x 41.7xCornerstone OnDemand, Inc. 2,247.5 44.04 95.1% 54.5% NM 16.6x 12.0x NM NM

Median 4,353.3$ 97.7% 39.4% 146.9% 13.2x 10.4x 69.5x 39.1x

Product Lifecycle Management/Engineering

Dassault Systemes SA 16,386.6$ 131.10$ 95.9% 5.7% 12.3% 5.3x 5.0x 17.2x 15.2xAutodesk, Inc. 7,955.7 35.39 85.4% 2.5% 41.7% 2.7x 2.6x 13.3x 9.2xAnsys, Inc. 7,380.2 79.84 96.8% 8.6% 14.3% 8.1x 7.8x 17.4x 15.5xSynopsys Inc. 5,695.4 37.04 97.8% 10.9% 68.3% 2.7x 2.6x 12.3x 8.7xCadence Design Systems Inc. 4,139.9 14.58 91.4% 10.2% 47.9% 2.9x 2.7x 12.8x 9.0xPTC Inc. 3,235.5 27.08 97.1% 2.6% 46.6% 2.5x 2.5x 12.8x 9.8xAspen Technology, Inc. 3,049.3 32.54 98.7% 20.9% 288.5% 9.7x 8.6x 70.4x 34.9xAveva Group plc 2,328.1 36.50 93.1% 12.7% 24.0% 6.1x 5.5x 19.5x 16.7xMentor Graphics Corporation 2,317.1 20.53 98.8% 6.2% 28.0% 2.2x 2.0x 12.5x 8.5x

Median 4,139.9$ 96.8% 8.6% 41.7% 2.9x 2.7x 13.3x 9.8x

Vertically Focused - Financial Technology

Intuit Inc. 18,979.4$ 63.92$ 93.4% 10.4% 37.7% 3.9x 3.8x 11.6x 9.6xJack Henry & Associates Inc. 4,159.2 48.30 96.9% 8.6% 14.7% 3.7x 3.5x 11.7x 10.5xBroadridge Financial Solutions, Inc. 3,508.3 28.94 99.7% 3.3% 29.6% 1.6x 1.6x 10.5x 8.4xSS&C Technologies Holdings, Inc. 2,993.9 35.78 93.0% 30.1% 35.8% 5.6x 5.4x 14.4x 13.3xFinancial Engines, Inc. 2,371.7 47.74 95.9% 26.0% 128.2% 10.2x 9.2x 52.9x 29.0xACI Worldwide, Inc. 1,886.9 47.35 91.3% 34.0% 55.5% 3.5x 2.7x 16.8x 10.0xAdvent Software, Inc. 1,512.5 29.43 81.3% 5.8% 38.5% 3.6x 3.5x 18.7x 12.7xBottomline Technologies (de), Inc. 1,045.6 29.07 97.4% 10.0% 129.1% 3.6x 3.4x 40.4x 17.4x

Median 2,682.8$ 94.7% 10.2% 38.1% 3.7x 3.5x 15.6x 11.6x

Vertically Focused - Healthcare IT

Cerner Corporation 16,812.3$ 49.00$ 96.4% 13.4% 37.0% 5.7x 5.2x 19.8x 15.9xathenahealth, Inc. 4,125.2 111.95 96.4% 40.8% 118.7% 8.8x 7.3x NM 38.8xAllscripts Healthcare Solutions, Inc. 2,791.1 15.81 98.7% 0.2% 86.1% 2.3x 2.2x 30.7x 14.1xHMS Holdings Corp. 2,122.9 24.19 65.0% 7.1% 8.4% 4.7x 4.5x 15.4x 13.9xQuality Systems Inc. 1,362.8 22.87 97.8% (1.2%) (2.4%) 2.7x 2.7x 12.7x 11.7xMedAssets, Inc. 1,332.2 21.77 98.4% 6.1% 12.8% 3.2x 3.2x 10.2x 9.8xComputer Programs & Systems Inc. 617.6 55.74 99.0% 10.7% 16.6% 3.1x 3.0x 12.4x 11.7x

Median 2,122.9$ 97.8% 7.1% 16.6% 3.2x 3.2x 14.0x 13.9x





Enterprise IT Management

Microsoft Corporation 265,225.8$ 31.84$ 87.4% 11.5% 12.0% 2.5x 2.4x 6.5x 6.0xHewlett-Packard Company 49,525.2 25.68 96.1% (7.1%) (0.2%) 0.5x 0.6x 4.5x 4.4xVMware, Inc. 35,302.0 82.19 79.8% 12.8% 75.6% 6.3x 5.9x 24.8x 14.9xCA Technologies 13,550.4 29.74 98.2% (3.5%) 3.1% 2.7x 2.8x 7.4x 7.2xCitrix Systems, Inc. 13,476.7 72.02 87.2% 15.0% 45.2% 4.3x 4.0x 19.3x 13.5xRed Hat, Inc. 9,800.3 51.77 86.3% 15.4% 54.3% 6.2x 5.8x 30.9x 21.1xBMC Software Inc. 6,525.9 45.98 95.8% 3.0% 43.3% 2.9x 2.8x 10.3x 7.2xSplunk, Inc. 5,191.6 50.01 96.0% 37.5% NM 22.2x 17.8x NM NMTIBCO Software Inc. 4,095.8 24.96 75.8% 2.6% 27.2% 3.8x 3.7x 20.3x 14.3xCompuware Corporation 2,420.3 11.34 89.0% (0.4%) 6.1% 2.5x 2.4x 16.5x 13.6xProgress Software Corporation 1,384.7 25.59 98.4% (0.6%) 18.3% 3.2x 3.3x 15.7x 10.4xPegasystems Inc. 1,361.9 35.90 98.7% 9.2% 68.0% 2.5x 2.3x 20.7x 14.1x

Median 8,163.1$ 92.4% 6.1% 27.2% 3.0x 3.0x 16.5x 13.5x

Enterprise Storage

EMC Corporation 54,414.3$ 26.15$ 92.8% 8.1% 44.3% 2.0x 1.9x 8.5x 6.1xNetApp, Inc. 14,848.9 41.12 97.6% 4.0% 67.4% 1.6x 1.5x 12.3x 7.0xTeradata Corporation 9,642.5 59.12 73.0% 5.6% 22.1% 3.4x 3.2x 15.0x 11.2xCommVault Systems, Inc. 3,944.2 84.40 95.8% 19.0% 77.1% 6.7x 6.2x 38.2x 25.3xBrocade Communications Systems, Inc. 2,955.6 6.66 98.7% (4.5%) 6.2% 1.2x 1.3x 5.6x 5.3xFusion-io, Inc. 1,417.4 14.42 44.2% 4.1% NM 2.5x 2.3x NM NM

Median 6,793.3$ 94.3% 4.8% 44.3% 2.2x 2.1x 12.3x 7.0x

Security

Symantec Corporation 18,639.2$ 26.68$ 99.2% 1.4% 17.2% 2.4x 2.4x 8.9x 8.0xCheck Point Software Technologies Ltd. 11,063.3 56.32 98.3% 3.6% 7.5% 5.5x 5.4x 9.8x 9.2xVeriSign, Inc. 6,868.9 47.84 95.4% 9.9% 20.1% 6.7x 6.5x 10.8x 10.1xTrend Micro Inc. 4,374.7 33.17 94.1% 11.8% 9.2% 2.7x 2.6x 8.1x 8.3xFortinet Inc. 3,447.3 21.25 75.3% 12.6% 15.7% 4.6x 4.4x 25.5x 20.4xImperva Inc. 1,241.2 50.62 97.4% 30.0% NM 10.2x 8.3x NM NM

Median 5,621.8$ 96.4% 10.8% 15.7% 5.1x 4.9x 9.8x 9.2x

Total Infrastructure Software Median 6,697.4$ 95.6% 6.8% 20.1% 3.0x 3.0x 12.3x 10.1x

11

Software – Application (Continued) Vertically Focused - Public Sector

Tyler Technologies, Inc. 2,376.1$ 74.62$ 94.5% 13.7% 25.2% 6.1x 5.7x 30.8x 27.3xBlackbaud Inc. 1,605.2 35.09 95.5% 12.1% 71.4% 3.7x 3.6x 19.4x 16.1xNIC Inc. 1,195.6 18.42 95.2% 14.5% 22.4% 4.7x 4.6x 17.6x 18.4xK12, Inc. 1,137.4 31.10 96.9% 16.9% 67.1% 1.3x 1.1x 12.9x 8.6xHigher One Holdings, Inc. 503.9 10.80 78.7% 12.1% (15.4%) 2.9x 2.5x 9.6x 10.7xMedian 1,195.6$ 95.2% 13.7% 25.2% 3.7x 3.6x 17.6x 16.1x

Total Application Software Median 3,021.6$ 95.9% 10.1% 35.4% 3.7x 3.6x 14.1x 11.7x



Software - Infrastructure



12

( $ in millions) Stock Price CY2013P Multiples SummaryMarket As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA


SaaS

Salesforce.com, Inc 25,809.7$ 43.75$ 92.0% 29.8% 602.9% 7.5x 6.2x NM 41.3xWorkday, Inc. 11,814.2 68.29 97.9% 60.4% NM 35.8x 25.1x NM NMNetSuite Inc. 6,927.4 93.89 94.0% 32.5% NM 18.8x 16.4x NM NMConcur Technologies, Inc. 4,962.8 88.89 98.9% 24.2% 182.1% 9.1x 8.0x NM 36.4xathenahealth, Inc. 4,125.2 111.95 96.4% 40.8% 118.7% 8.8x 7.3x NM 38.8xThe Ultimate Software Group, Inc. 3,740.5 135.30 97.4% 23.1% 111.7% 9.9x 8.9x 69.5x 41.7xQlik Technologies, Inc. 2,725.5 31.32 96.5% 23.2% 182.4% 5.8x 5.2x NM 44.5xFinancial Engines, Inc. 2,334.8 47.74 95.9% 26.0% 128.2% 10.0x 9.1x 52.0x 28.5xCornerstone OnDemand, Inc. 2,247.5 44.04 95.1% 54.5% NM 16.6x 12.0x NM NMDealertrack Technologies, Inc. 1,626.5 37.40 96.8% 17.8% 113.2% 3.7x 3.3x 26.7x 13.1xBlackbaud Inc. 1,601.7 35.09 95.5% 12.1% 71.4% 3.7x 3.6x 19.3x 16.1xOpenTable, Inc. 1,450.8 63.68 88.2% 16.3% 80.2% 7.8x 7.2x 25.4x 16.4xDemandware, Inc. 1,339.8 44.42 93.1% 25.0% NM 14.8x 12.5x NM NMMedAssets, Inc. 1,326.3 21.77 98.4% 6.1% 12.8% 3.2x 3.2x 10.2x 9.8xSPS Commerce, Inc. 977.0 64.53 95.2% 33.6% 92.2% 9.8x 8.8x NM 70.0xJive Software, Inc. 922.8 13.42 66.3% 27.7% NM 5.9x 5.3x NM NMConstant Contact, Inc. 589.3 19.19 90.4% 13.3% 126.2% 1.8x 1.7x 25.0x 11.0xLivePerson Inc. 508.9 9.24 48.6% 12.2% 11.8% 2.6x 2.5x 34.6x 20.5x

Total SaaS Median 1,937.0$ 95.4% 24.6% 113.2% 8.3x 7.3x 26.0x 28.5x

Software as a Service

(“SaaS”)



has received a strategic investment from




has been recapitalized by



a subsidiary of












Selected HW&Co. TMT Transactions

13






a division of





has been recapitalized

http://www.helpsystems.com/

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Sources

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