December 2019 - January 2020

2

ABOUT US

M&A DEAL SUMMARY

MOVERS AND SHAKERS

AVENDUS INSIGHTS – PRODUCTE ENGINEERING SERVICES (PES) INDUSTRY OVERVIEW

REPRESENTATIVE TRADING COMPARABLES

3Source: Mergermarket, Company Press release and Avendus Research

Date Buyer Target HQ DescriptionSegment/Vertical

Deal Size($Mn)

EV/ Revenue

EV/EBITDA Rationale

30-Jan-20Provider of video interpretation solutions with a focus in the healthcare industry

Consulting475 4.4x 15.8x

Scale, Capability play

27-Jan-20Provider of cloud technology, cyber security, Agile, and DevOps services and solutions

Cloud, Cybersecurity

85 1.9x NACapability Play,

Geography –Market Access

19-Jan-20 China China-based IT consulting and outsourcing company Consulting 750 NA NAGeography –

Market Access

14-Jan-20A cloud, Enterprise Resource Planning (ERP), and data services provider for Oracle and Microsoft applications and databases

Consulting NA NA NACapability Play,


13-Jan-20A digital consulting firm delivering IT systems modernization and business transformation for government and commercial clients



09-Jan-20Provider of risk adjustment and quality healthcare solutions

Software Development,

System Integrators

NA NA NA PE Transaction

08-Jan-20Slovak

iaProvider of Salesforce.com platform-related services

System Integrators

NA NA NA Capability Play

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US

AVENDUS INSIGHTS –PES INDUSTRY OVERVIEW



Deal Size($Mn)

EV/ Revenue

EV/EBITDA Rationale

07-Jan-20Provider of Retail AI-powered markdown, promotions, assortment and allocation SaaS products

Software Development

NA NA NAScale, Geography –

Market access

07-Jan-20Consulting firm that specializes in cloud application platforms and modern development frameworks

Software Development,

CloudNA NA NA Capability Play

07-Jan-20

Cybersecurity

Provides global threat monitoring and analysis through a network of security operation centers, real-time adversary and industry-specific threat intelligence and incident response services

Cybersecurity NA NA NA Capability Play

07-Jan-20Germa

ny

A provider of customer experience and customer relationship management consulting, optimization and ongoing enhancement services


Geography –Market access

07-Jan-20 Managed Services

Managed services division of West Monroe Partners, LLC

Managed Services


06-Jan-20

Cirrus9

Canada

Digital healthcare marketing and technology consultancy

Digital Agency NA NA NA Capability Play

06-Jan-20 A Microsoft Dynamic solutions provider Consulting NA NA NACapability Play,

Scale

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US




Deal Size($Mn)

EV/ Revenue

EV/EBITDA Rationale

27-Dec-19Provides managed cloud and hosting solutions to customers from eastern Canada to British Columbia

Managed Services

NA NA NAGeography –

Market Access

24-Dec-19Leading I.T. services provider serving the Triangle and Triad areas of North Carolina

Managed Services

NA NA NAScale, Geography –

Market Access

23-Dec-19Delivers smart and innovative SaaS technology solutions to the US residential mortgage industry


NA NA NA Scale

19-Dec-19Full-service, independent technology company that provides embedded solutions

ER&D $401 2.4x 24.2xScale, Capability

Play

18-Dec-19

Company engaged in providing technology consultancy by specializing in cloud & mobile apps, data analytics & machine learning, enterprise collaboration and machine design

Consulting NA NA NAGeography –

Market Access

18-Dec-19

NTT DATA NETE

USA provider of digital design and transformation services for U.S. Department of health and human services (HHS) agencies

Software Development(Government)

NA NA NA Vertical Focus

18-Dec-19Provider of hospital and physician revenue cycle services and supporting technology

BPM NA NA NA Capability Play

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US




Deal Size($Mn)

EV/ Revenue

EV/EBITDA Rationale

18-Dec-19

Leidos Dynetics

USProvider of high-technology, mission-critical services and solutions to the US Government, including NASA, DOD

Software Development(Government)

$1,650 2.8x 25.4xCapability Play,

Scale

13-Dec-19

Accenture

Clarity Insights

USProvider of data science and artificial intelligence/ machine learning engineering capabilities to companies

Analytics NA NA NA Capability Play

12-Dec-19

Softtek Vector ITC

SpainDesigns and implements technological solutions that adapt to different segments


NA NA NAScale, Vertical

Focus

12-Dec-19Warburg Pincus and Vivtera

Arise Virtual Solutions

US

It employs state-of-the-art systems and technology to enable automation of document and data management for commercial insurance and government customers

Managed Services


11-Dec-19 USProvider of business process outsourcing (BPO) and crowdsourcing solutions

BPM NA NA NA PE Platform Play

10-Dec-19 Hawke MediaArtemis Digital Media

USFull-service digital media management company providing premium affiliate management services

Digital Agency NA NA NA Capability Play

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US




Deal Size($Mn)

EV/ Revenue

EV/EBITDA Rationale

10-Dec-19 Kore Integron USProvider of IoT solutions and managed services with a focus on the connected health market

Managed Services

NA NA NAScale, Capability

Play

10-Dec-19 Acronis 5nine US Virtualization management and security provider Cybersecurity NA NA NA Scale

09-Dec-19Delivers software development solutions on multiple platforms


11.7 0.7x 4.9xScale, Geography – Market Access

09-Dec-19Indecomm Digital

Avantica Technologies

US

Nearshore software development company focused on driving customer outcomes by leveraging their experience across the product development life cycle


NA NA NAScale, Geography –Delivery Capability

05-Dec-19Consensus Point

Cipher Systems

USFull-service competitive strategy and technology firm

Consulting NA NA NA Capability Play

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US




Deal Size($Mn)

EV/ Revenue

EV/EBITDA Rationale

03-Dec-19 NTT DATA Flux7 USIT consultancy company providing architecture, migration solutions to help businesses manage their own cloud infrastructure

Cloud NA NA NACapability Play,

Scale

02-Dec-19 UST GlobalNecsia Cybersecurity

SpainProvider of cybersecurity and digital transformation services

Cybersecurity NA NA NAScale, Geography –Delivery Capability

02-Dec-19HelpSystems

Clearswift UK Cyber security specialist Cybersecurity NA NA NA Scale

02-Dec-19 BCM One Arena One USService provider offering cloud communications and managed data services

Managed Services

NA NA NA Scale

01-Dec-19 Accenture Apis GroupAustra

liaCompany engaged in providing business management consultancy services

Consulting $31 NA NAScale, Vertical

Focus

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


9

Chief Financial

Officer

Chief Financial Officer

EXL announced the appointment of Maurizio

Nicolelli to the role of Executive Vice President and

Chief Financial Officer effective February 3, 2020. Mr.

Nicolelli will join EXL’s Executive Committee and will

be based at EXL’s corporate headquarters in New

York.

Mr. Nicolelli’s most recent role was Senior Vice

President and Chief Financial Officer of Casa

Systems, which he joined in 2019. Prior to that, he

served 23 years at FactSet Research Systems, where

he was Senior Vice President, Principal and Chief

Financial Officer from 2009 to 2018.

Mr. Nicolelli holds a Bachelor of Arts degree

from Syracuse University and a Master’s of Business

Administration degree from St. John’s University. He

is a Certified Public Accountant.

Resigned onSeptember 14, 2019

Appointed effectiveFebruary 3, 2020

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


10

President & Global

CEO

Startek has appointed Aparup Sengupta as executive

chairman and global CEO, effective January 15,

2020. Sengupta will replace Lance Rosenzweig, who

is stepping down from his role as president and

global CEO to pursue other opportunities.

Sengupta brings more than two decades of

executive experience in the BPO and

telecommunications industry and has served as

Startek’s chairman of the board of directors since

the business combination with Aegis on July 20,

2018.

Sengupta is an operating partner of Capital Square

Partners (CSP), a Singapore-based private equity

firm and majority shareholder of Startek.

Previously, Sengupta was the executive chairman

of The Minacs Group, a global BPO company that

was acquired by SYNNEX Corporation, a publicly-

traded Fortune 500 company. Prior to that, he spent

over eight years as global CEO and managing

director for Aegis.

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Executive Chairman &

Global CEO

Appointed effectiveJanuary 15, 2020

Resigned onSeptember 14, 2019

11

CEO & MD

Wipro announced that CEO & MD Abidali Z

Neemuchwala has decided to step down due to

family commitments.

The Board of Directors has initiated a search to

identify the next Chief Executive Officer. Abid will

continue to hold the office of CEO & MD until a

successor is appointed for a smooth transition and

to ensure that business continues as usual.

Rishad Premji, Chairman said, “We thank Abid for his

leadership and his contributions to Wipro. Over the

last four years, Abid helped build a strong execution

mindset, drove key acquisitions and scaled our

Digital business globally. We wish him the very best

for the future.”

Resigned onJanuary 31, 2020

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


12

Source: Last 5 years data taken as on 2nd Jan 2020 from CapIQ; Indices for each group have been calculated free float market cap methodology (sum of free float shares* share price) and then rebased to 100Note: Large-Cap IT: Tata Consultancy Services Limited, Infosys Limited, Cognizant Technology Solutions Corporation, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, International Business Machines Corporation, Accenture plc, Capgemini SE; Mid-Cap IT: Mphasis Limited, Mindtree Limited, Hexaware Technologies Limited, NIIT Technologies Limited, Persistent Systems Limited, Zensar Technologies Limited, The Hackett Group, Inc., Larsen & Toubro Infotech Limited; Digital Engineering Focused: Endava plc, EPAM Systems, Inc., Globant S.A.CRM Focused BPM: TTEC Holdings, Inc., Sykes Enterprises, Incorporated; Teleperformance SE, StarTek, Inc., Firstsource Solutions Limited Diversified BPM: WNS (Holdings) Limited, Genpact Limited, Conduent Incorporated, ExlService Holdings, Inc.; SaaS: salesforce.com, inc., Workday, Inc., ServiceNow, Inc., Box, Inc., LogMeIn, Inc.

158

129

175

820

311

254

417

S&P 500 Large Cap IT Mid Cap IT Digital Engineering Focussed CRM Focussed BPM Diversified BPM SaaS

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


13

10.4x

14.2x

11.4x

10.8x

12.1x

12.1x

18.5x

36.3x

7.6x

11.1x

11.6x

16.9x

S&P 500 Large Cap Mid Cap Digital Engineering Focussed CRM Focussed BPM Diversified BPO

Source: Last 5 years data taken as on 2nd Jan 2020 from CapIQ; Median values have been taken for groupsNote: Large-Cap IT: Tata Consultancy Services Limited, Infosys Limited, Cognizant Technology Solutions Corporation, Wipro Limited, HCL Technologies Limited, Tech Mahindra Limited, International Business Machines Corporation, Accenture plc, Capgemini SE; Mid-Cap IT: Mphasis Limited, Mindtree Limited, Hexaware Technologies Limited, NIIT Technologies Limited, Persistent Systems Limited, Zensar Technologies Limited, The Hackett Group, Inc., Larsen & Toubro Infotech Limited; Digital Engineering Focused: Endava plc, EPAM Systems, Inc., Globant S.A.CRM Focused BPM: TTEC Holdings, Inc., Sykes Enterprises, Incorporated; Teleperformance SE, StarTek, Inc., Firstsource Solutions Limited; Diversified BPM: WNS (Holdings) Limited, Genpact Limited, Conduent Incorporated, Capita plc, ExlService Holdings, Inc.

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


14Source: CapIQ as on 5th February 2020.

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Mkt Cap($Mn)

Enterprise Value($Mn)

3 Yr. Historical

Rev. CAGR

LTM

CompanyRevenue

($Mn)EBITDA($Mn)

EBITDA Margin EV/Revenue EV/EBITDA P/E

ACCENTURE 1,34,956 1,32,958 10% 43,968 7,069 16% 3.0x 18.8x 27.8x

IBM 1,32,057 1,91,491 NM 77,147 16,602 22% 2.5x 11.5x 14.0x

TCS 1,11,200 1,07,074 9% 21,780 5,661 26% 4.9x 18.9x 24.4x

INFOSYS 46,965 44,744 7% 12,642 3,023 24% 3.5x 14.8x 20.2x

COGNIZANT 34,732 33,355 9% 16,628 3,169 19% 2.0x 10.5x 16.6x

HCL 22,377 22,168 11% 9,670 2,209 23% 2.3x 10.0x 15.1x

CAPGEMINI 21,418 24,393 5% 15,632 2,019 13% 1.6x 12.1x 23.4x

WIPRO 19,380 16,019 3% 8,475 1,737 20% 1.9x 9.2x 14.0x

TECH MAHINDRA 9,914 8,790 8% 5,096 831 16% 1.7x 10.6x 16.2x

Mean 8% 20% 2.6x 12.9x 19.1x

Median 8% 20% 2.3x 11.5x 16.6x

15

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Mkt Cap($Mn)


3 Yr. Historical

Rev. CAGR

LTM

CompanyRevenue

($Mn)EBITDA($Mn)


LTIL 4,750 4,549 16% 1,455 263 18% 3.1x 17.3x 23.0x

MPHASIS 2,415 2,351 7% 1,163 191 16% 2.0x 12.3x 15.8x

MINDTREE 2,100 2,032 13% 1,061 133 12% 1.9x 15.3x 24.0x

HEXAWARE 1,560 1,553 12% 751 116 15% 2.1x 13.4x 18.5x

AKKA 1,413 1,994 17% 1,917 161 8% 1.0x 12.4x 21.5x

PERFICIENT 1,353 487 3% 531 67 13% 2.8x 21.9x 46.1x

NIIT 1,336 432 9% 558 91 16% 2.2x 13.2x 22.9x

VIRTUSA 1,116 859 28% 1,267 97 8% 1.2x 15.0x 39.5x

PERSISTENT 654 444 12% 488 77 16% 1.1x 7.0x 13.0x

ZENSAR 590 472 9% 600 77 13% 1.0x 7.4x 14.3x

HACKETT 501 252 4% 260 41 16% 1.9x 12.1x 26.2x

Mean 12% 14% 1.8x 13.4x 24.1x

Median 12% 15% 1.9x 13.2x 22.9x

Source: CapIQ as on 5th February 2020.

16

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Mkt Cap($Mn)


3 Yr. Historical

Rev. CAGR

LTM

CompanyRevenue

($Mn)EBITDA($Mn)


EPAM 9,688 1,160 26% 2,046 322 16% 4.5x 28.4x 39.5x

GLOBANT 3,328 323 27% 578 104 18% 5.8x 32.1x 63.3x

ENDAVA 2,296 207 34% 366 51 14% 6.0x 42.9x 75.3x

Mean 29% 16% 5.4x 34.5x 59.4x

Median 27% 16% 5.8x 32.1x 63.3x


17

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Mkt Cap($Mn)


3 Yr. Historical

Rev. CAGR

LTM

CompanyRevenue

($Mn)EBITDA($Mn)


TELEPERFORMANCE 13,160 3,852 11% 5,616 917 16% 2.9x 17.7x 34.6x

TTEC 2,245 1,275 5% 1,571 186 12% 1.6x 13.9x 39.7x

SYKES 1,294 1,460 8% 1,606 167 10% 0.9x 8.8x 24.1x

FIRSTSOURCE 492 549 4% 564 75 13% 1.0x 7.3x 8.9x

STARTEK, Inc. 252 415 23% 657 35 5% 0.8x 15.8x NM

Mean 10% 11% 1.5x 12.7x 26.8x

Median 8% 12% 1.0x 13.9x 29.3x


18

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Mkt Cap($Mn)


3 Yr. Historical

Rev. CAGR

LTM

CompanyRevenue

($Mn)EBITDA($Mn)


GENPACT 7,393 2,571 7% 3,274 519 16% 2.6x 16.7x 25.7x

CAPITA 3,412 5,394 NM 4,775 318 7% 1.1x 16.2x 11.7x

WNS 3,061 603 13% 851 163 19% 3.7x 19.4x 26.7x

EXLSERVICE 2,377 686 12% 969 129 13% 2.5x 19.0x 47.4x

CONDUENT 1,298 6,408 NM 4,856 538 11% 0.6x 5.7x NM

Mean 11% 13% 2.1x 15.4x 27.9x

Median 12% 13% 2.5x 16.7x 26.2x


19

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Mkt Cap($Mn)


3 Yr. Historical

Rev. CAGR

LTM

CompanyRevenue

($Mn)EBITDA($Mn)


SALESFORCE.COM 1,35,758 8,437 26% 14,729 2,064 14% 9.2x 66.0x 142.9x

SERVICENOW 45,450 1,391 37% 3,224 238 7% 14.0x 189.7x NM

WORKDAY 36,049 1,574 35% 3,245 NM NM 11.0x NM NM

LOGMEIN 3,269 336 64% 1,248 319 26% 2.8x 10.8x NM

BOX 2,465 399 26% 655 NM NM 4.1x NM NM

Mean 38% 16% 8.2x 88.8x 142.9x

Median 35% 14% 9.2x 66.0x 142.9x


Click here to access our OPD Report

26%

~$250Bn

37%40%

35%34%

27%

2016 2017 2021

Software Embedded Mechanical

20

Source: Zinnov Zones Product Engineering Services 2016, 2017Note: 1. Includes market for captives, offshore R&D service providers and onshore R&D service providers

~$250Bn

~$170Bn

PRODUCT ENGINEERING

PROCESS ENGINEERING

(Plant design engineering,

manufacturing

engineering, industrial

engineering and process

control systems)

$232Bn

$302Bn

$420Bn

$62Bn

$38Bn $100Bn

$25.5Bn Western Europe

$10.0Bn North America

$12.5Bn India

$4.0Bn Eastern Europe

$10.0Bn RoW

GlobalIn-House Captives

(GICs)

ENGINEERING SERVICE PROVIDERS (ESPs)

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


https://www.avendus.com/crypted_pdf_path/img_5b0bf03e1e8885.41824468_Avendus_Custom%20Software%20Development_Jan2018%20(1).pdf

21

Modern Infrastructure

High performance computer

architecture

Cloud centric infrastructure

Security, infrastructure (MDM, End point encryption)

Software defined infrastructures

Data lakes

Digital workloads and relevant stakeholders

Customer ExperienceCMO | CDO | CAIO1

New Digital ProductsCInO2 | CTO | CDO | CAIO1

Operational ExcellenceCOO | CIO | BU | CDO

Workforce EngagementCOO | CHRO | BU

Risk Management & SecurityCRO | CIO

Digital Business Outcomes

New Age Enterprise Digital Business Models

Digital Technology Foundation

Personalized Experience

Business Efficiency

Empowered Workforce

New Revenue Workstreams

Business Security and Customer Privacy

Software Led Platformization

Empowered Workforce

Co-Innovator with Customer

Data Ecosystem

Internet of Things AR/VR

3D Printing Robotic Automation

Blockchain

Near Zero Interfaces

R&

D I

NV

ES

TM

EN

T A

CR

OS

S S

TA

KE

HO

LD

ER

S

Source: Worldwide semi-annual digital transformation spending guide , IDC, November 2017, Everest Group, NASSCOM Strategic Review 2018, 20191. CAIO: Chief Artificial Intelligence Officer2. CInO: Chief Innovation Officer

(in $Bn)

(in $Bn)

390

668

2018 2021

180

310

2017 2020e

Digital Addressed Market Size

DigitalTransformation Services TAM

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


22Note: Years refer to calendar year

A significant demand-supply mismatch in the US for key skills driving outsourcing

Integration of software to be the next driver of growth across verticals

Reduction in innovation cycles with companies leveraging complex technology architecture

▪ 18–19% of business leaders in the developed world, across verticals, expect a large-scale mismatch in demand and supply of talent in R&D and product/services design, over the next three years

▪ While US, Western Europe and Japan account for ~60% of the global R&D budget, only ~20% of the engineers graduate from these geographies

▪ Across businesses, market leaders are increasing the proportion of spend towards software development (contribution from software R&D to increase from ~27% (2017) to 37% (2020))

▪ The outsourced software PES addressable market is expected to grow at a CAGR of ~13% against the overall outsourced PES addressable market growing at ~5% between 2016 and 2021

▪ Over the last decade, the advent of multiple disruptive technologies like AI/ML, Automation, IoT, Cloud, renders all technology created before 2010 to be “legacy”

▪ Ability to integrate and connect multiple technology stacks is central to modern enterprise IT systems

Industry 4.0 to drive digital product development for industrial IoT

▪ Driven by adaption of smart automation across industries, industrial IoT market is expected to increase from $161Bn in 2018 to $934Bn in 2025 at a CAGR of 29%

▪ This is expected to drive demand growth for development of industrial IoT platforms as well as the analytics stack on top of this over the next five years

Data driven customer centric organizations gaining dominance in the digital age

▪ Data creation has grown at a CAGR of >42% since 2015, reaching ~30ZB in 2019. This combined with advances in AI/ML technologies, make it a strategic imperative for new enterprise applications to be intelligent

▪ The need to translate brand promise to customer experience across channels has led to large services opportunity (ongoing convergence between marketing and technology)

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


615

600

552

499

483

400

374

350

350

200

175

150

150

120

50 250 450 650 850

EPAM Systems

Globant

Globallogic

Perficient

Beyondsoft

Persistent

Rocket Software

Endava

Harman OPD

Softserve

NessTechnologies

Ciklum

Cybage

Infogain

Accion Labs

2,166

23

Note: Logos mentioned in the pyramid are only a representative list and not exhaustive list of PES service providers1. LTM for listed players, latest available for unlisted ones; Source: Bloomberg, Avendus Research

(Revenue in $Mn1)

▪ Comprises pure-play outsourced software development players and large

diversified IT services providers

▪ Recently, ER&D majors (e.g. Alten, Altran) have been investing in this

market segment

▪ Similar profile as Tier 1 players albeit with a relatively

smaller revenue profile

▪ Pure play companies typically have higher growth rates

compared to peers

▪ Smaller-sized players focusing on

catering to certain select verticals,

geographies and/or service lines

▪ Most are pure-play outsourced

software development firms offering

niche products/solutions

Revenue>$500Mn

Revenue>$100–500Mn

Revenue<$100Mn

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


24

Note: Large Scale And Higher Organic Growth Drives Higher Valuation Multiple For OPD AssetsSources: Company Information, Avendus Research1. As of 17 January 2020; 2. LTM as of 17 January 2020 3. Cash conversion: = (EBITDA-Capex)/EBITDA

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


Company

Market Cap.1 €11,521Mn NA €3,953Mn €682Mn €2169Mn

EV/LTM EBITDA1,2 35.8x NA 40.2X 9.0x 40.5x

Revenue (Growth)2 €1,986Mn (25%) €541Mn (20%) €564Mn (24%) €443Mn (6.2%) €343Mn (28%)

EBITDA (Margin%)2 €311Mn (16%) €117Mn (22%) €101Mn (18%) €66Mn (15%) €53Mn (16%)

Cash Conversion1,2,3 82% NA 83% 88% 83%

# Employees 35,451 6,000+ 8,384 10,543 5,904

Employee Breakdown by Geography NA

Client Concentration

(%) NA

# Clients per Revenue

AccountNA

Revenue Breakdown by

Industry

Top Client Top 10

11% 38%

34%

25%

12%

10%

7%

5%7%

Argentina Colombia

India Mexico

US Uruguay

Others

8,384

31%

22%16%

7%5%

4% 4%

2%9%

Belarus Ukraine

Russia USA

Hungary Poland

India China

Others

35,451

86%

14%

Indian

Global

10,543 52%

28%

14%4%

2% CEE - Part of EU

CEE - Not Part of EU

Latam

Western Europe

North America

5,904

Top Client

Top 5 Top 10 Top 20

<10% 22% 32% 43%

26%

22%17%

13%

10%

10%

2% Media and Entertainment

BFSI

Travel & Hospitality

Tech & Telecom

Consumer, Retail & Mfg

Professional Services

Other Verticals

(FY18)

23%

21%19%

18%

9%10%

Financial Services

Travel & Consumer

Software & Hi-Tech

Business Info & Media

Life Sciences & Healthcare

Emerging Verticals

(FY18)40%

35%

25%ISV

Enterprise

IP Led

(FY19) 52%

28%

20%Payments & Fin. Services

TMT

Other

(FY19)

35%

30%

25%

10%

Media & Communication

High Tech & Commerce

Medical Devices & Industrial Engineering

Other

(FY18)

Top Client

Top 5 Top 10 Top 20

11% 32% 44% 58%

Top Client

Top 5 Top 10 Top 20

24% 42% 52% NA

<$1Mn $1Mn+ $5Mn+ $10Mn+

NA 256 81 36

<$1Mn $1Mn+ $5Mn+ $10Mn+

283 90 21 9

<$1Mn+ $1Mn+ $3Mn+ $10Mn+

NA 77 20 NA

<£1Mn £1Mn+ £5Mn+ £10Mn+

212 48 15 n/a

25

END-TO-END PRODUCT LIFECYCLE CAPABILITIES1

CONSULTATIVE APPROACH TO DRIVE BUSINESS IMPACT2

VERTICAL SPECIALIZATION3

ABILITY TO MINE HIGH-POTENTIAL ENTERPRISE ACCOUNTS4

INNOVATION MINDSET AND IP CREATION WITH FOCUS ON NEW-AGE TECHNOLOGIES5

RIGHT-SHORING: A CRITICAL SUCCESS FACTOR FOR COMPLEX PROJECTS6

These critical success factors are rapidly becoming

must-haves – while execution remains key, these

are relatively easier to achieve

Consultative capabilities are difficult to develop /

acquire, and even more difficult to integrate and

scale. This is a key differentiator that can help

create significant value

Accelerators & pre-packaged tools are increasingly

becoming a must-have and can create significant

value enabling both non-linear growth and higher

gross margins. That said, a very small percentage

of services companies have been successful in

developing revenue-generating products. Pursuing

the product route has typically resulted in a

sideways or downward financial trajectory for

services firms

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


26

Source: MergerMarkets and Avendus estimatesThe above analysis is based on 97 transactions tracked by Avendus from Sep 2015 onwards in PES space

2 3

68

12

16

21

25

1.2x2.3x 2.4x 2.2x

10.1x

13.6x11.9x

15.3x

2016 2017 2018 YTD 2019

PE Deals Strategic Deals

EV/Revenue EV/EBITDA

14

19

27

33

56%31%

8%5%

North America

Europe

Asia

Others

20%

13%

47%

15%

5% Vertical Focused Play

Delivery Geography

Capability Play

Scale

New Market Access

▪ Technology services vendors have been acquiring scale in PES services (e.g. DXC-Luxoft, Capgemini-

Altran, Cognizant-Softvision)

▪ PES vendors are doing tuck-ins to maintain competitive edge along the critical success factors (this is

bulk of the volume as shown in the next slide)

▪ Private equity firms are investing in $100m+ revenue platforms (e.g. Bain-Brillio, Warburg Pincus-

Indecomm) that can enable them to execute on a buy and build strategy

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


27

78%

20%3% Mergers & Acquisitions

PE Syndication

Structured Finance

72%

28%

Sellside Buyside

44%56%

Domestic

Cross-Border

Transactions

Deal Value

Professionals Globally

Has Acquired

UndisclosedAdvisor to: eInfochips

January 2018

Has Acquired

UndisclosedAdvisor to: LaserLine

July 2017

▪ Thought Leader: Cloud, Digital, Analytics, Software Development

▪ Relationship Network: Constant dialogue with 500+ firms and funds

▪ Theme Based Advisory: Identify future trends

▪ ~80% M&A vs. 20% Fund Raising

▪ Deal size: $50Mn–1.2Bn

▪ 60%+ Mandates Closed

Has Merged

UndisclosedAdvisor to: KPIT

January 2019

Has Acquired

$1.2BnAdvisor to: Patni

January 2011

Has Acquired

$536MnFinancial Advisor

July 2011

1. As of November 2019, by number of deals

▪ Unparalleled track record in

selling $50-500 Mn revenue

companies globally

▪ Global network of 250+

buyers across the US, EU,

China, Japan, and India

▪ Specialist in cross-border

transactions

▪ Raising capital of $50-

250Mn from PE funds

for mid-size tech

companies

▪ Network of over 500

funds globally

▪ Network to source

assets globally

▪ Represented some

of the leading

global buyers and

funds

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


28

Private Equity

UndisclosedAdvisor to ProdaptSeptember 2019

Private Equity

UndisclosedAdvisor to QBSS

October 2019

Has Acquired

UndisclosedAdvisor to: IGTJanuary 2019

Has merged with

UndisclosedAdvisor to: KPIT

Jan 2019

Private Equity

UndisclosedAdvisor to: MidEuropa

November 2018

Has Acquired

UndisclosedAdvisor to: CitiusTech

August 2018

Private Equity

UndisclosedAdvisor to: FPE

June 2018

Has Acquired

Undisclosed Advisor to: SCOPE

June 2018

Has Acquired

Undisclosed Advisor to: Runway

May 2018

Has Acquired

UndisclosedAdvisor to: TATA

April 2018

Has Acquired

UndisclosedAdvisor to: eInfochips

January 2018

Has Acquired

Undisclosed Advisor to: TAISTech

December 2016

Has Acquired

Undisclosed Advisor to: Lohika

August 2016

Has Acquired

$28MnAdvisor to: BSIL

January 2016

Has Acquired

$27MnAdvisor to: eClerx

April 2015

Private Equity

UndisclosedAdvisor to: Visionary

December 2017

Has Acquired

$202MnAdvisor to: MphasiS

December 2012

Has Acquired

$1.2BnAdvisor to: Patni

January 2011

Has Acquired

$536MnFinancial Advisor

July 2011

Has Acquired

$95MnAdvisor to: BornNovember 2019

Private Equity

UndisclosedAdvisor to: UST

June 2018

M&A DEAL SUMMARY

MOVERS AND SHAKERS


ABOUT US


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