Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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Software was the Most Active and Highest Value Segment in 1Q18

with 716 Transactions Totaling $30.9 Billion in Reported Deal Value

During 1Q18, Petsky Prunier tracked 972 M&A and investment transactions for a total of $46.3 billion across

three broad segments: Software, Information, and Business & IT Services. Software was the most active segment,

accounting for 74 percent of total volume during the first quarter of the year, with 716 deals announced. Of

those, 434 reported $30.9 billion in value. The Information and Business & IT Services segments reported values

of $1.7 billion and $13.7 billion, respectively, in 1Q18.

*Transactions valued at $6 billion or more have been excluded from totals to limit comparative distortions. The aggregate total for 4Q17 does not include Thales’

$6.6 billion TEV acquisition of Gemalto, including cash, stock, and net debt. The aggregate total value for 1Q18 does not include Blackstone’s pending $20 billion

acquisition of Thomson Reuters’ F&R business, including cash, stock, and net debt, General Dynamics’ pending $9.6 billion TEV acquisition of CSRA, including cash,

stock, and net debt, or Salesforce’s pending $6.5 billion TEV acquisition of MuleSoft, including cash, stock, and net debt.

1Q18 Summary of M&A and Investment Activity in the

Software, Information, and Business & IT Services Industries:

972 Transactions Totaling a Reported $46.3 Billion

884 621

Software$30,906

Information$1,745 Business &

IT Services$13,698

Software, Information, and Business & IT Services Industries

1Q18 M&A and Investment Activity $ in Millions

Software, Information, and Business & IT Services Industries

1Q17-1Q18 M&A and Investment Activity $ in Billions

695

5 752 813

$42.3

$55.9$49.4

$45.8

$82.4

1Q17 2Q17 3Q17 4Q17 1Q18

DOLLAR

VALUE

DEAL

VOLUME

Thomson

Reuters

F&R

/

Blackstone

Gemalto CSRA

884 972 695

5 752 813

MuleSoft

/

Blackstone

Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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M&A Activity

Excluding Blackstone Group’s pending TEV $20 billion acquisition of Thomson Reuters’ F&R Business, General

Dynamics’ $9.6 billion TEV acquisition of CSRA, and Salesforce’s pending $6.5 billion TEV acquisition of MuleSoft,

acquisitions accounted for 47 percent of total transaction activity in 1Q18. Strategic buyers announced 397

majority transactions, 60 of which were reported for $29.2 billion in aggregate value. M&A value in 1Q18 was up

nine percent compared with the fourth quarter of last year, and up more than 28 percent from the first quarter

of 2017.

Software was the most active M&A segment in 1Q18 with 261 transactions, of which 47 were reported worth

$21.8 billion. The Financial Software and Healthcare Software subsegments accounted for nearly 40 percent of

the segment’s activity with 60 and 41 deals announced, respectively. Financial Software was the highest value

subsegment with 10 transactions reporting $4.7 billion. Transactions in the segment during 1Q18 included:

• RELX Group’s acquisition of cybersecurity and digital identity network solutions provider ThreatMetrix in a

transaction valued at $817 million

• The $500 million acquisition of SaaS-based construction program management solution e-Builder by Trimble

• LogMeIn’s $357 million purchase of enterprise collaboration software company Jive Communications

• Security team collaboration solution Phantom’s $350 million sale to Splunk

• Electronic health records company Practice Fusion’s sale to Allscripts in a deal valued at $100 million

The Information segment reported 17 M&A transactions, including six worth a reported $1.7 billion. Nearly half

of all acquisitions in the segment occurred within the Financial Information and Product/Price Information

subsegments, each announcing four transactions. Transactions in the segment during 1Q18 included:

• The $1.2 billion acquisition of Stewart Information Services by Fidelity National Financial

• Tronc’s acquisition of online product reviews platform BestReviews in an acquisition valuing the company at

$85 million

• The majority stake taken by Hyundai Development in real estate information database Real Estate 114 in a

transaction valued at $60 million

• The acquisition of Geoscape International, a leading multicultural market intelligence company, by Carlyle

Group-backed Claritas (A Petsky Prunier-led transaction)

The Business & IT Services segment had 183 M&A transactions during 1Q18, of which 22 were valued at $10.1

billion. The IT Consulting subsegment accounted for more than half of the segment’s activity with 100

transactions, of which seven were worth a reported $2.3 billion in value. The Corporate Training subsegment also

was active with 20 acquisitions announced. Transactions in the segment during 1Q18 included:

• SSC Technologies’ acquisition of DST Systems in a transaction valuing the company at $5.4 billion

• On Assignment’s acquisition of ECS Federal, a provider of technology services to government agencies, in a

transaction valued at $775 million

• The acquisition of digital consultancy LiquidHub by Capgemini for a reported $500 million

Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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• Design and managed services company eInfochips’ sale to Arrow Electronics in a transaction valuing the

company at $280 million

Investment Activity

There were 511 investments announced in the first quarter of 2018, of which 423 were reported for $12.8 billion

in aggregate value. Software was the most active investment segment during 1Q18 with 455 deals, of which 387

reported $9.1 billion in value. The Financial Software and Security Software subsegments, together, accounted

for one-third of investment activity in the segment during the first quarter of the year with 96 and 59 transactions,

respectively. Financial Software was the highest value subsegment, with 77 transactions worth a reported $2.1

billion. Investments in the segment during 1Q18 included:

• Construction industry software Katerra’s $865 million round of funding from SoftBank, CPPIB, Navitas

Capital, and Soros Fund Management

• Iconiq Capital, Altimer Capital Management, and Sequoia Capital’s $260 million investment in cloud-based

data warehousing software developer Snowflake Computing

• Dragoneer Investment Group’s $146 million investment in senior care industry-focused software solution

PointClickCare at a reported valuation of $730 million

• The $120 million round of funding raised by UiPath, a provider of solutions for automating legacy and back-

office functions, at a reported valuation of more than $1 billion from Kleiner Perkins Caufield & Byers

• DevOps and continuous delivery platform developer XebiaLabs’ $100 million round of funding from Accel

Partners and Susquehanna Growth Partners

The Business & IT Services segment reported 45 investments, of which 28 were worth $3.6 billion in value. Activity

was driven by the Corporate Training subsegment, which accounted for more than 40 percent of the segment’s

volume with 20 transactions. Business & IT Services investments during 1Q18 included:

• The $80 million in growth financing received by managed healthcare services company VillageMD from

Athyrium Capital Management

• Next-day delivery services company Ninja Logistics’ $80 million investment from DPD Group and ACE Capital

• Live learning platform Varsity Tutors’ $50 million round of funding from Learn Capital and TCV

Buyer & Investor Activity

Strategic buyers announced 397 deals during 1Q18, of which 60 were reported for $29.2 billion in aggregate

value. Software was the most active and largest value segment with 233 transactions, 40 of which were worth

more than a reported $18.8 billion. Strategic buyers completed 148 Business & IT Services deals, of which 15

were worth $8.8 billion in reported value.

Buyout firms completed 64 acquisitions in the first quarter of the year, with 15 transactions reporting $4.3 billion

in aggregate value. The Business & IT Services segment accounted for nearly 55 percent of transaction activity. In

addition to Blackstone’s acquisition of Thomson Reuters’ F&R business, buyout transactions in 1Q18 included:

Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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• The acquisition of IT infrastructure software solutions company HelpSystems by HGGC in a transaction

valuing the company at $1.2 billion, including debt

• H.I.G. Capital’s acquisition of online printing company Digital Room from Insight Venture Partners in a

transaction valued at $350 million

• Battery Ventures and Silver Lake Partners’ acquisition of environmental risk information solutions provider

Environmental Data Resources for $205 million

1Q18 Most Active Strategic Buyers by Number of Transactions

Buyer Number of Transactions

Representative Targets

The reported value of transactions completed by venture and growth capital investors in 1Q18 increased 50

percent compared with the fourth quarter of 2017, while activity was up 19 percent. Sequoia Capital and New

Enterprise Associates were the most active investors in 1Q18 with 15 and 13 investments reported, respectively.

3

3

3

3

2

2

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Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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1Q18 Most Active Investors by Number of Transactions

Investor Number of Transactions

Representative Investments

IPO Activity

Collaboration solution-focused Dropbox, Brazil-based financial technology solutions company PagSeguro, and

security-as-a-service platform Zscaler completed IPOs in the Software, Information, and Business & IT Services

segments in 1Q18. Digital signature provider DocuSign, application development solutions-focused Pivotal

Software, and work management and collaboration solution Smartsheet.com submitted IPO filings during the

first quarter of the year but have yet to price.

*All values as of 5pm ET on 3/30/2018. Transaction values include only reported up-front cash payments and do

not account for any potential future performance-based compensation unless noted.

15

13

9

8

7

7

7

5

Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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Quarterly M&A and Investment Activity by Segment

About Petsky Prunier LLC

Petsky Prunier is one of the leading investment banks to the technology, media, marketing, information, eCommerce, and healthcare

industries. Our firm's merger and acquisition and private placement advisory services reflect a unique blend of product specialization

and industry expertise. Together with strategic consulting firm Winterberry Group, a Petsky Prunier company, our organization

represents one of the largest industry-specific advisors providing strategic and transactional services. We offer global reach

supplemented through our partnerships in China and India. Securities transactions are processed through Petsky Prunier Securities LLC,

a member of FINRA, and an affiliated entity.

4Q17 1Q18 1Q18 vs 4Q17

(% Change)

Subsegment

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Financial 136 4,984 156 6,787 516 32,144 15% 36%

Healthcare 83 4,378 97 5,224 345 13,780 17% 19%

Security 81 3,556 93 2,527 329 9,933 15% (29%)

HR 45 935 66 939 206 2,986 47% 0%

Collaboration 35 3,453 42 860 120 5,449 20% (75%)

Infrastructure 30 1,790 37 8,631 96 10,898 23% 382%

Data Management 26 2,073 35 493 130 4,184 35% (76%)

ERP 36 432 33 309 147 6,094 (8%) (29%)

Engineering 24 792 28 1,618 79 7,824 17% 104%

Other 118 2,310 129 3,518 534 15,566 9% 52%

Total 614 24,703 716 30,906 2,502 108,859 17% 25%

4Q17 1Q18 1Q18 vs 4Q17

(% Change)

Subsegment

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

IT Consulting 108 3,932 111 2,357 373 10,704 3% (40%)

Corporate Training 43 2,421 40 939 135 7,564 (7%) (61%)

Logistics 10 752 11 2,930 38 7,680 10% 290%

Staffing 11 13 11 0 38 1,398 0% (100%)

Healthcare Consulting 18 869 9 1,252 53 13,646 (50%) 44%

Legal Consulting 5 21 9 0 17 3,141 80% (100%)

HR Consulting 10 0 8 407 27 407 (20%) NM

Financial Consulting 6 3,750 6 5,400 21 11,545 0% 44%

Printing Services 7 0 5 350 25 367 (29%) NM

BPO 6 84 4 0 24 8,363 (33%) (100%)

Other 8 1,000 14 62 42 1,819 75% (94%)

Total 232 12,842 228 13,698 793 66,633 (2%) 7%

4Q17 1Q18 1Q18 vs 4Q17

(% Change)

Subsegment

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Number of

Transactions

Reported

Value ($MM)

Financial Information 9 1,178 9 86 36 4,892 0% (93%)

Product/Price Information 3 200 5 155 13 433 67% (22%)

Credit/Risk Management Information 1 140 3 1,476 7 1,707 200% 954%

Geo-Demographic Information 2 0 3 21 8 21 50% NM

Healthcare Information 10 96 3 2 34 8,287 (70%) (98%)

HR Information 2 5 2 0 5 12 0% (100%)

Engineering/Scientific/Tech Information 3 7 1 0 9 18 (67%) (100%)

IT Information 2 28 1 5 4 33 (50%) (81%)

Legal Information 6 30 1 0 10 36 (83%) (100%)

Total 38 1,684 28 1,745 126 15,438 (26%) 4%

Most Active Information Subsegments

LTM

Most Active Software Subsegments

Most Active Business & IT Services Subsegments

LTM

LTM

Petsky Prunier’s Summary of 1Q18 M&A and Investment Activity Software, Information, and Business & IT Services Industries

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Representative Recent Transactions

*Approximate Transaction Value