Mobile Digital Workplace Transforming Where and How Work ... · large opportunity to digital...

Mobile Digital Workplace

Transforming Where and How Work Gets Done

Quarterly Commentary – Q2 2017

Quarterly Newsletter

The Digital Workplace

The workplace has begun to evolve as technologyprogresses and makes employee communicationand interaction more flexible. The DigitalWorkplace is a broad term that encompassestechnological innovations that are making theconcept of the workplace as a physical space athing of the past.

Companies are benefiting from the increaseddigitization of the workplace through: improvingproductivity; reducing costs; developing moreagile and mobile workforces; and having greateroverall resource flexibility in an increasinglycomplex and competitive marketplace.

The Digital Workplace, despite being in the earlyphases, offers the potential to liberate workersfrom the confines of an office to meet thedemands of a progressively more fast-paced globalbusiness environment, as well as presenting alarge opportunity to digital workplace technologyenablers.

“Enterprises are collaborating more globally, andwith more diverse and global staff. Employees cannow work all over the world, from the jungle to thearctic, as long as they have reliable Internet.”

- Deloitte, Digital Workplace and Culture, 2016

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Digital Workplace Market Size

The Digital Workplace Transformation Market is estimated to grow from $8.0 billion in 2016 to $18.1 billion by 2021, a CAGR of 17.6%

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2016 2021

MarketSize($B)

The main drivers of Digital Workplace growth are advances in device and network technologies that no longer require employees to be physically near each other to collaborate on projects. The ability for employees to roam more freely has presented challenges to enterprises, but has also created new

market opportunities for vendors and next-generation solution providers.

Digital Workplace Transformation Market, 2016-2021 ($B)

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Digital Workplace Opportunities - SMAC

Gartner aptly categorizes some of the key marketopportunities presented by the Mobile DigitalWorkplace. These key opportunities include Social,Mobile, Analytics, and Cloud, or SMAC

• Social – Enterprise Social Networks have become anecessity for businesses to interact with customers,and even within workplaces. According to Frost &Sullivan, 72% of companies are expected to deployat least one social software tool or platform.

• Mobile – Through the proliferation of smart devicesand broadband Internet connections, employeesare able to work and interact with other employeesand customers from virtually anywhere in theworld.

• Analytics – With massive amounts of big data beingcreated, analytics provides the key to process thisdata in a way that helps employees become evenmore productive and make improved businessdecisions.

• Cloud – By utilizing cloud technologies, enterprisescan operate more efficiently with elastic computingpower which enables the delivery of applicationsand data to employees and customers.

Source: Gartner

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Digital Workplace Progress

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Digital Workplace Progress: Leading & Emerging Vendors

Some of the major and emerging players in the Digital Workplace transformation market include:

● Leading software and enterprise communication vendors such as Adobe, Cisco, IBM, Microsoft, Oracle, Salesforce, SAP, and Unisys

● Leading Enterprise Mobility Management(EMM) vendors including Blackberry, Citrix,LANDesk, MobileIron, Soti, and VMware

● Other large vendors from a variety ofsectors, including Accenture, Amazon,Apple, Capgemini, Facebook, Google, PWC,and Samsung

● Emerging solutions such as APPrise, Box,Comfy, CultureIQ, Deep Instinct, DropBox,Genband, Infolio, Jive, Mavenir, Movius,Slack, Synchronoss, Sophos, Wizdom, andmany others

Source: ZDNet

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Digital Workplace Market Drivers & Challenges

Market Drivers

• Increasing Pace of Business - The workplace has changed atan intense rate as there is an increased pressure foremployees to collaborate more efficiently in order to satisfydemand. Therefore, Digital Workplaces have adapted to letemployees share ideas and collaborate on projects. Deloittefinds that organizations with strong online networks are 7%more productive than those without these networks.

• Employee Productivity and Retention - Just as there arehigher expectations of employees to perform, employeesentering the workforce are also demanding more from theiremployers. A February 2017 Gallup poll says that 51% ofemployees are searching for new jobs or watching foropenings. Digital workplaces give employees greaterflexibility that helps improve engagement, and thereforeretention.

• BYOD - BYOD, or bring your own device, is a key measure thathas allowed the Digital Workplace to flourish. Whenemployees are allowed to use their own devices, they cancollaborate in far more places than the office, and can bereached much faster. Digital workplace platforms are acomplement to these new measures, especially if theseplatforms run on multiple operating systems.

• Improved Data Speeds - With the advent of newtelecommunications standards such as LTE and 5G, the speedand capacity of data continues to rise. The lower latenciesand higher bandwidth of 5G will be critical to platforms suchas video, real-time collaboration, and IoT.

Market Challenges

• Generationally-Diverse Workforce – While the new generationof workers entering the workforce are IT-savvy, oldergenerations with a different viewpoint on the workplace tendto be wary of or will take some time to become accustomed tonew technologies and platforms. Thus, digital workplacesolutions must be flexible in order to account for the wide arrayof adoption by employees.

• Implementation of Infrastructure - The Digital Workplacerequires an infrastructure in place that effectively implementsthe necessary hardware, software, and Internet connectivity.Even if BYOD policies are implemented in the workplace, extratime and resources are needed in order to make sureemployees are running the necessary software and are trainedto optimally use these platforms.

• Security and Confidentiality - Digital Workplaces need toensure necessary precautions are taken so that employees’devices are properly protected against security risks so thatconfidential information is not compromised. This especiallyapplies to workplaces with BYOD policies, as an employeemerely losing his personal device can have serious ramificationsif their data is not encrypted properly.

• Continued Employee Engagement - Gallup Reports that only33% of employees feel that they are engaged at work. Whilethe digital workplace has shown to improve both engagementand retention, the next challenge for employers implementingDigital Workplaces is to ensure that their employees continueto feel engaged at work and that their work is meaningful.

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Digital Workplace Financing and M&A

Digital Financing and M&A

Companies are becoming increasingly digitized in orderto compete in the current market. Based on a recentstudy by EY, from more than 600 interviews with non-technology corporate executives — mostly from largecompanies, 90% of executives are facing increasedcompetition from companies that have been quicker toembrace digitization. This is driving an increasingnumber of enterprises to pursue digitization throughseveral avenues such as M&A, outsourcing,alliances/partnerships, and JVs. However, few arelooking to do nothing.

THA’s Take on Funding and M&A Activity in Digital

As companies look to digital technologies to remaincompetitive and relevant, we expect increasedinvestment and M&A in the areas of Social, Mobile,Analytics, and Collaboration (SMAC). We would notethat 67% of company respondents to the E&Y surveyplan to use M&A to buy rather than build digitalcapability over the next two to three years. We aretherefore bullish on the market opportunity foremerging companies with the relevant technologiesthat take advantage of the Digital WorkforceTransformation.

Source: E&Y, 2016

Q: Which of the following has your company undertaken in the past two years and the next two to three years to achieve its digital transformation goals?

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Digital Workplace - Financing Transactions

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Date Announced

Target Target Description Size ($M)

5/19/2017 Smartsheet.com Smartsheet.com, a Software-as-a-Service company, offers an enterprise-ready cloud app for work management and collaboration.

$6.3

5/18/2017 Project Affinity Project Affinity develops network and customer relationship management solutions for enterprises. $6.0

5/2/2017 Mocana Corporation Mocana Corporation operates an enterprise mobile application security platform that facilitates organizations to deliver business-critical mobile applications for internal and external users.

$5.3

4/4/2017 FogLogic FogLogic develops SaaS based software that enables users to manage enterprise applications on public or hybrid clouds, or on-premise.

$5.2

3/31/2017 Mode Analytics Mode Analytics provides online service for collaboratively analyzing data. $5.8

3/29/2017 Oodrive Group Oodrive Group provides Software-as-a-Service based cloud file management solutions for businesses worldwide. $6.2

3/15/2017 Flock Flock develops an enterprise communication and collaboration application that helps simplifying communication and boosting organizational productivity.

$6.0

2/6/2017 Fuze Fuze provides voice-over Internet protocol telecommunication services and other cloud-based solutions in the United States and internationally.

$134.0

2/3/2017 Nimble Nimble develops Web-based customer relationship management software for companies to engage customers in a two-way dialogue in the United States and internationally.

$13.5

2/1/2017 SpringCM SpringCM develops and delivers cloud-based document management software. $36.3

1/31/2017 On Direct Business Services

On Direct Business Services, doing business as Backup Direct, provides cloud migration and management services to small and mid-sized businesses.

$7.5

1/11/2017 iCiX North America iCiX North America, a cloud-based Software-as-a-Service company, provides supply chain risk management and compliance solutions for retail and manufacturing enterprises.

$20.0

12/16/2016 Panzura Panzura provides enterprise storage infrastructure for the cloud era. $39.2

12/8/2016 Procore Technologies Procore Technologies provides cloud-based construction management software. $50.0

11/28/2016 CaféX Communications CaféX Communications provides software solutions for Web real-time communication and mobile business-to-consumer collaboration for various applications.

$20.0

11/18/2016 Sparkcentral Sparkcentral is an enterprise social media helpdesk platform for high-volume and real-time engagement. $25.0

11/2/2016 Mavenlink Mavenlink provides Web-based project management and resource planning solutions that are used for online collaboration, file sharing, time tracking, projects management, email integration, online invoicing, and expense tracking.

$45.0


Digital Workplace - Financing Transactions

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Date Announced

Target Target Description Size ($M)

10/11/2016 Cloverpop Cloverpop develops a cloud-based decision making, management, and collaboration software application for businesses.

$7.5

9/30/2016 Premiere Global Services Premiere Global Services,provides collaboration software and services in North America, Europe, and the Asia Pacific. $9.0

9/20/2016 RealScout RealScout, develops and operates a web and mobile platform that helps real estate agents collaborate with their clients.

$10.0

8/30/2016 Frame.io Frame.io, provides a media collaboration platform that enables users to upload, review, and share media with vendors, clients, and offsite team members.

$13.5

8/23/2016 Logik Systems Logik Systems develops a cloud discovery and investigation platform for law firms, corporations, and governments. $13.0

8/10/2016 Jive Communications Jive Communications provides enterprise-grade hosted VoIP and unified communications to businesses and institutions worldwide.

$12.0

8/10/2016 BlueTalon BlueTalon develops and operates data collaboration and data unification technology platform and solutions. $20.0

8/8/2016 Kaltura Kaltura provides video platform for enterprises, media companies, service providers, and educational institutions. $52.1

6/21/2016 InVisionApp InVisionApp provides a design collaboration platform for startups, corporations, and design agencies. $55.0


Digital Workplace - Merger & Acquisition Transactions

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Date Announced

Acquirer Target Target Description EV ($M) EV/Rev

6/19/2017 Meltwater Group Social Media Broadcasts Provides social media analytics SaaS for marketers globally. NA NA

5/31/2017 IBM Corporation TIMETOACT GROUP (XCC collaboration SaaS)

Provides intranet-based, IBM Connections Cloud team collaboration SaaS for businesses globally.

NA NA

5/30/2017 Vista Equity Partners Management

Lithium Technologies Offers social community-based marketing, social media management and analytics, as well as customer support SaaS for businesses.

NA NA

5/23/2017 Interactions Digital Roots Provides social media monitoring, analytics and customer engagement SaaS for businesses. NA NA

5/9/2017 Upskill Pristine Provides video collaboration SaaS that enables in-the-field workers to connect to experts remotely via mobile devices and wearable smart glasses.

NA NA

5/1/2017 ESW Capital Jive Software Provides social media-based team collaboration and social media monitoring and marketing software as a service (SaaS) for businesses.

$353.4 1.7x

3/8/2017 8x8 LeChat Provides enterprise team collaboration software that allows employees using different collaboration software applications to communicate with one another.

NA NA

3/8/2017 Amazon Web Services Do.com Provides team meeting productivity management SaaS for organizations. Software provides features for scheduling, meeting minute and note creation and summary report generation.

NA NA

3/8/2017 Localytics Tapglue Provides social software that enables businesses to integrate social networking features into their mobile applications or websites.

NA NA

2/23/2017 Madison Dearborn Partners

BlueCat Networks Provides software-based domain name services (DNS), Dynamic Host Configuration Protocol (DHCP) and IP address management SaaS for enterprises.

$325.0 5.4x

2/22/2017 HootSuite Media LiftMetrix Provides social media metrics and analytics reporting SaaS for businesses to determine the ROI of Facebook and Twitter marketing campaigns.

NA NA

2/16/2017 Higher Logic Kavi Corporation Provides team collaboration and related document management SaaS for businesses. Software promotes faster workgroup results, streamlines participation and simplifies administration.

NA NA



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Date Announced


2/15/2017 iGambit HubCentrix Provides team collaboration, document capture and imaging primarily within the medical sector.

NA NA

2/14/2017 Euronext Company Webcast Provides webinars and webcasting, audio and teleconference SaaS, as well as outsourced Web conferencing services, for businesses.

$3.8 NA

2/1/2017 My Net FoneAustralia

Conference Call International

Provides Web and audio conferencing software and services for businesses in Australia, New Zealand and the Asia Pacific region.

$13.2 NA

1/26/2017 Spigit Kindling Provides team collaboration SaaS for enterprises. Software provides features for the introduction, group discussion and project planning by company divisions, sales teams and think tank groups.

NA NA

1/24/2017 CafeXCommunications

Vayyoo Provides cloud-based collaborative software for businesses. Software provides features for real-time document sharing, messaging, push notifications and widget integration via mobile application, tablets and PC.

NA NA

1/17/2017 j2 Global Unified Email Provides inbound and outbound message delivery SaaS, and e-mail hosting services for businesses.

NA NA

1/12/2017 Premiere Global Services

Ecovate Provides Web and audio conferencing, and webinar SaaS for businesses. Also provides hosted voice communications services.

NA NA

1/12/2017 TA Associates think project! International

Provides cloud-based cross-enterprise collaboration software for businesses in the real estate, utilities, government, transportation, healthcare, hospitality, construction and engineering industries.

NA NA

1/11/2017 Arxan Technologies Apperian Provides mobile enterprise application management software and SaaS that enables enterprises to deploy and secure applications to any device.

NA NA

1/9/2017 Atlassian Trello Provides social collaboration online software for enterprise employees and consumers. Software allows employees and consumers to create "boards" where members collaborate to complete tasks for a project.

$425.0 NA

12/6/2016 SynchronossTechnologies

Intralinks Holdings Provides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas, technology and manufacturing industries to securely exchange documents and sync files.

$853.2 2.9x

11/17/2016 Sprinklr Little Bird Technologies Provides social influencer marketing SaaS for brands and businesses. Little Bird helps marketing organizations build social capital, expand their relevant reach and grow their businesses.

NA NA

11/11/2016 CrowdTangle Provides social media monitoring SaaS primarily for the journalism and publishing sectors. NA NA



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Date Announced


11/9/2016 OneLogin Sphere Secure Workspace Provides enterprise mobility management (EMM) SaaS for iOS and Android devices for businesses.

NA NA

10/27/2016 VoceraCommunications

Extension Healthcare Provides team collaboration messaging SaaS that enables physicians at hospitals to communicate with patients via a managed messaging system.

$55.0 NA

10/17/2016 Cisco Systems Heroik Labs Provides an enterprise Web and mobile application, enabling the management of team meetings, schedules and tasks.

NA NA

8/31/2016 Sumeru Equity Partners

Telesoft Provides billing management and related SaaS and services for enterprise fixed and mobile telecom companies. Software provides billing management, automated reporting and expense analysis.

NA NA

8/22/2016 Apple Gliimpse Provides electronic health record (EHR) management SaaS to enable consumers to store and share personal records.

NA NA

8/22/2016 Microsoft Corporation

Genee Provides calendar scheduling SaaS through email or an iOS mobile application for consumers. Software enables automated meeting scheduling and appointment reminders.

NA NA

8/9/2016 Corel Corporation Spigit (Mindjet MindManager division)

The Mindjet MindManager division provides information visualization and collaborative idea-mapping and virtual project planning SaaS for use on Windows, Mac and enterprise network platforms.

NA NA

8/1/2016 salesforce.com Quip Provides team collaboration and document management SaaS for businesses. $410.0 NA

8/1/2016 Neverfail Vertiscale Provides workspace virtualization SaaS, including desktop and application virtualization, for managed service providers (MSP).

NA NA

7/27/2016 Main Capital Partners

OBI4wan Provides social media monitoring SaaS for businesses in Europe. Also provides related CRM analytics, marketing and customer care SaaS.

NA NA

7/14/2016 Telstra Corporation MSC Mobility Provides enterprise mobility management (EMM) managed services, including smartphone device management and help desk support services, mobile application management, service delivery and deployment.

NA NA

Mean 3.3x

Median 2.9x


Technology Transaction Successes By THA Professionals

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Contact Us

For further information, please contact any of the Telegraph Hill Managing Directors listed below:

Phillip Courten

[email protected]

Mobile: (917) 363-3635

Office: (415) 523-0055 Ext. 235

Scott P. Sutherland, CFA

[email protected]

Mobile: (310) 422-7283

Office: (415) 523-0055 Ext. 448

Dinesh Moorjani

[email protected]

Mobile: (415) 314-1141

Office: (415) 523-0055 Ext. 346

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Mobile Digital Workplace Transforming Where and How Work ... · large opportunity to digital...

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