Q1 2014 Enterprise Application Software Market Snapshot

David Dolan Director

[email protected]

Peter Gant Managing Director

[email protected]

Q1 2014 Enterprise Application Software

Market Snapshot

Gregory Ager Managing Director

[email protected]

www.signalhill.com

Joe Morgan Managing Director

[email protected]

Chase Sanders Managing Director

[email protected]

B a l t i m o r e │ B a n g a l o r e │ B o s t o n │ M u m b a i │ N a s h v i l l e │ N e w Yo r k │ R e s t o n │ S a n F r a n c i s c o

mailto:[email protected]





Contents

Signal Hill at a Glance…………………………………..……………………….………..…. 3

Signal Hill’s Enterprise Application Software Practice…………..................................... 4

Q1 2014 Enterprise Application Software M&A Overview…………….…….…............... 5

Notable Q1 2014 Enterprise Application Software M&A Transactions........................... 6

Q1 2014 M&A Enterprise Application Software Transactions…….……………………... 7

Q1 2014 Enterprise Application Software IPO Data……………………………..……….. 16

Q1 2014 Enterprise Application Software Public Company Valuation Metrics………..... 17

LTM Relative Enterprise Application Software Stock Price Performance………………. 18

2

Signal Hill at a Glance

Signal Hill is a leading independent advisory boutique serving the M&A and private capital raising needs of growth

companies. Signal Hill's experienced bankers provide deep domain expertise and an unyielding commitment to

clients in our sectors: Internet & Digital Media, Internet Infrastructure, Services and Software. With more than 600

completed transactions and offices in Baltimore, Bangalore, Boston, Mumbai, Nashville, New York, Reston and San

Francisco, Signal Hill leverages deep strategic industry and financial sponsor relationships to help our clients

achieve Greater Outcomes®.

Recent Mergers & Acquisitions, Strategic Advisory Transactions

Mergers &

Acquisitions

Equity Private

Placements

Restructurings

Strategic

Advisory

Special

Committee

Advisory

Fairness

Opinions

3

Signal Hill’s Recent Enterprise Application Software Deals

Includes previous experience

4

Q1 2014 Enterprise Application Software M&A Overview

The Enterprise Application Software sector held relatively steady from Q4 2013 to Q1

2014 in terms of deal volume. Total announced enterprise value (EV) did not

experience the same pattern – it declined more than 42 percent to reach the second

lowest value in the last twelve months (LTM). Median announced deal size followed

suit with a 14.3 percent decrease, but median revenue multiple reached its highest

point of the LTM, 2.7x.

5

Source: Signal Hill Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Number of Deals 203 152 175 256 249

% change from prior quarter - -25.1% 15.1% 46.3% -2.7%

Total Announced Enterprise Value ($M) $3,813.4 $9,985.7 $11,877.7 $14,999.8 $8,594.7

% change from prior quarter - 161.9% 18.9% 26.3% -42.7%

Median Announced Deal Size ($M) $17.9 $34.7 $43.4 $26.5 $22.7

% change from prior quarter - 93.8% 25.1% -38.9% -14.3%

Median EV/LTM Revenue Multiple 1.7x 2.5x 1.8x 2.4x 2.7x

% change from prior quarter - 49.8% -29.7% 32.8% 11.2%

Select Enterprise Application Software Transactions, Q1 2014

Trubiquity Acquired by

Rocket Software

Signal Hill advised Trubiquity. Trubiquity, a leader in managed file transfer and

information logistics, has been acquired by Rocket Software, a global software

development firm that builds enterprise products and delivers enterprise solutions

across multiple segments. Trubiquity’s solutions will enable Rocket Software to

provide a broader portfolio of access and integration solutions to its enhanced

customer base.

Clarity Received an

Investment from North

Bridge Growth Equity

Signal Hill advised Clarity Software Solutions (“Clarity”). Clarity, a leading

provider of on-demand document management and communications delivery

solutions for the health insurance industry, has received a growth investment

from North Bridge Growth Equity. The investment will accelerate Clarity’s

exceptional growth trajectory through the addition of seasoned executive talent,

investment in strategic sales and marketing initiatives and expansion of its suite

of products.

Fieldglass to be Acquired

by SAP AG

EV: $1,000.0M

Revenue Multiple: 11.8x

Fieldglass, a leading technology provider for procuring and managing contingent

labor and services, has agreed to be acquired by SAP AG (NYSE: SAP). The

acquisition will allow SAP to deliver a platform for businesses to manage their

entire workforce, both temporary and permanent, from recruiting and on-boarding

to development, performance management, retention and retirement.

Accelrys to be Acquired

by Dassault Systèmes

EV: $646.6M


Accelrys, a scientific enterprise product lifecycle management (PLM) software

company, has agreed to be acquired by Dassault Systèmes (OTC: DASTY), a

provider of 3D design and PLM software. The acquisition will strengthen Dassault

Systèmes’ offering of scientific product-life cycle management in areas such as

molecular chemistry, packaged consumer goods and energy.

KANA Software to be

Acquired by Verint

Systems

EV: $514.0M


KANA Software, a leader in customer service solutions delivered both on-

premises and in the cloud, has agreed to be acquired by Verint Systems

(NASDAQ: VRNT), a global leader in Actionable Intelligence solutions. The

acquisition will enable organizations worldwide to implement a single-vendor

suite to help transform customer engagement.

Parature to be Acquired

by Microsoft

EV: $100.0M

Parature, a leading provider of cloud-based customer engagement solutions, has

agreed to be acquired by Microsoft (NASDAQ: MSFT). The acquisition is

expected to add world-class customer self-service capabilities to expand

Microsoft Dynamics’ vision of helping organizations deliver amazing customer

experiences.

Notable Q1 2014 Enterprise Application Software M&A Transactions

6 Denotes Signal Hill advised transaction

Q1 2014 M&A Enterprise Application Software Transactions

7

Date

Announced Seller Buyer

Enterprise

Value Revenues EBITDA

Enterprise Value

Revenue EBITDA 31-Mar-14 FusePump Ltd. Wunderman NA $4.9 NA NA NA

31-Mar-14 SecondSync Ltd. Twitter, Inc. NA NA NA NA NA

31-Mar-14 DivX, Inc. Parallax Capital Partners/StepStone

Group $52.5 $73.1 NA 0.7x NA

31-Mar-14 Andera, Inc. Bottomline Technologies $48.2 NA NA NA NA

31-Mar-14 Mesagraph SAS Twitter, Inc. NA NA NA NA NA

28-Mar-14 AMEE IP Holdings Pty Ltd / Easy Dealer software Rubik Financial Limited $2.5 NA NA NA NA

28-Mar-14 Iron Data, LLC / Transportation Division Spire Capital Partners, L.P. NA NA NA NA NA

28-Mar-14 PeopleAdmin, Inc. Vista Equity Partners NA NA NA NA NA

28-Mar-14 MagMo Upper Street Marketing, Inc. NA NA NA NA NA

28-Mar-14 Jaguar Consulting, Inc. FilmTrack, Inc. NA NA NA NA NA

27-Mar-14 Media Armor, Inc. Nomi Technologies, Inc. NA NA NA NA NA

27-Mar-14 Klout, Inc. Lithium Technologies Inc. $200.0 NA NA NA NA

27-Mar-14 Sohnar Ltd. Deltek, Inc. NA NA NA NA NA

27-Mar-14 Akoya, Inc. Integrated Industrial Information, Inc. NA NA NA NA NA

26-Mar-14 Fieldglass, Inc. SAP AG $1,000.0 $85.0 $25.0 11.8x 40.0x

26-Mar-14 pcsysteme.at IT-Service GmbH TouchStar Group NA NA NA NA NA

26-Mar-14 Conax AS Kudelski Group SA $226.4 NA NA NA NA

25-Mar-14 LiveVox, Inc. / Undisclosed Majority Stake Golden Gate Capital $85.0 $35.0 NA 2.4x NA

25-Mar-14 I-Texts, Inc. Global Marketing Services NA NA NA NA NA

25-Mar-14 Software Management Inc. Simpleview Inc. NA NA NA NA NA

24-Mar-14 Neurostar Solutions, Inc. Nuance Communications, Inc. NA NA NA NA NA

24-Mar-14 CarTrawler / Undisclosed Majority Stake BC Partners NA NA NA NA NA

24-Mar-14 Groupe Enode, Inc. TELUS Corp. NA NA NA NA NA

21-Mar-14 Accells Technologies Ping Identity Corporation NA NA NA NA NA

21-Mar-14 Berkeley Design Automation, Inc. Mentor Graphics Corporation NA NA NA NA NA

21-Mar-14 Pancredit Systems Limited Equiniti NA NA NA NA NA

21-Mar-14 2Ergo Limited / Assets Eagle Eye Solutions Group plc $7.5 NA NA NA NA

20-Mar-14 Swanson Services Corporation Trinity Services Group, Inc. NA NA NA NA NA

20-Mar-14 Lucido SoftLabs Pvt. Ltd / Assets (Yourbus) ibibo Web Pvt Ltd. NA NA NA NA NA

$ in millions


8

Date


Enterprise


Enterprise Value

Revenue EBITDA

19-Mar-14 Knotice IgnitionOne [MBO] / ABS Capital

Partners NA NA NA NA NA

19-Mar-14 Pebble Beach Systems Ltd. Vislink plc $24.8 $8.6 $2.0 2.9x 12.5x

19-Mar-14 Esquire Innovations, Inc. BigHand, Ltd. NA NA NA NA NA

19-Mar-14 TerraXML / Arbortext business unit EAC Product Development Solutions NA NA NA NA NA

19-Mar-14 X2O Media, Inc. Barco NV $19.0 $4.7 NA 4.1x NA

18-Mar-14 TagMan Inc. Ensighten, Inc. NA NA NA NA NA

18-Mar-14 BEONTRA AG Lockheed Martin Corporation NA NA NA NA NA

18-Mar-14 Cenzic, Inc. Trustwave Holdings, Inc. NA $10.0 NA NA NA

18-Mar-14 Solariat / Assets Genesys Telecommunications

Laboratories NA NA NA NA NA

18-Mar-14 Institutional Shareholder Services Vestar Capital Partners $364.0 NA NA NA NA

18-Mar-14 AdMobius, Inc. Lotame Solutions, Inc. NA NA NA NA NA

18-Mar-14 Roomlinx, Inc. Signal Point Holdings Corp. $3.2 $15.1 NA 0.2x NA

18-Mar-14 TravelClick Inc. / Assets Thoma Bravo LLC $930.0 NA NA NA NA

17-Mar-14 Vocal Ltd. Everbridge Inc. NA NA NA NA NA

17-Mar-14 Innovata LLC Reed Business Information Ltd. NA NA NA NA NA

17-Mar-14 Zulip, Inc. Dropbox Inc. NA NA NA NA NA

14-Mar-14 FreightCar America / Rail Fleet Management ShipXpress, Inc. NA NA NA NA NA

14-Mar-14 Pronoia BVBA Sanoma Learning B.V. NA NA NA NA NA

14-Mar-14 InfoCentricity, Inc. Fair Isaac Corporation NA NA NA NA NA

14-Mar-14 Skillsoft Plc / Assets Charterhouse Capital Partners NA NA NA NA NA

13-Mar-14 SmartReceipt, Inc. Mobivity Holdings Inc. NA NA NA NA NA

13-Mar-14 Renaissance Learning Inc. / Assets Hellman & Friedman LLC $1,100.0 $136.0 NA 8.1x NA

13-Mar-14 Internet Broadcasting Systems Inc. Nexstar Broadcasting Group, Inc. $20.0 NA NA NA NA

12-Mar-14 MatchCraft, Inc. Advance Digital, Inc. NA NA NA NA NA

12-Mar-14 ECi Software Solutions / Assets The Carlyle Group NA NA NA NA NA

12-Mar-14 Velocity Medical Solutions, LLC / Assets Varian Medical Systems Inc. NA NA NA NA NA

12-Mar-14 Teknix SARL / Majority Stake Voiteq Ltd. NA NA NA NA NA

12-Mar-14 Tradelegs / Undisclosed Stake Chicago Board Options Exchage

Holdings NA NA NA NA NA

11-Mar-14 Sample Digital Holdings LLC / Assets Prime Focus Technologies $9.1 NA NA NA NA

$ in millions


9

Date


Enterprise


Enterprise Value

Revenue EBITDA 10-Mar-14 Tomorrow Networks, LLC Physicians Interactive NA NA NA NA NA

10-Mar-14 Pearl Media Group Ltd CloudStream Media, Inc. NA NA NA NA NA

10-Mar-14 Qlika Priceline.com Inc. NA NA NA NA NA

10-Mar-14 Identity Forge LLC IDMWORKS NA NA NA NA NA

07-Mar-14 YourTrove Live Nation Labs NA NA NA NA NA

06-Mar-14 ServiceKick Jaroop NA NA NA NA NA

06-Mar-14 Sky Software Pty Limited Tribal Group plc $3.6 NA NA NA NA

06-Mar-14 The Echo Nest Spotify AB $100.0 NA NA NA NA

06-Mar-14 Signature Solutions, LLC / Assets MDI Achieve, Inc. NA NA NA NA NA

06-Mar-14 DIGIDOK GmbH / Assets Allgeier Holding AG NA NA NA NA NA

06-Mar-14 Blayze Inc. Vobile, Inc. NA NA NA NA NA

06-Mar-14 ArchitTrek, LLC Axium XTS Corporation NA NA NA NA NA

05-Mar-14 LeisureLink, Inc. VacationRoost Group Inc. NA NA NA NA NA

05-Mar-14 Origen Technology Limited Datacom Group Ltd NA NA NA NA NA

05-Mar-14 Glad to Have You, Inc. HomeAway Inc. NA NA NA NA NA

04-Mar-14 IT Sonix AG Enghouse Systems Limited $9.7 NA NA NA NA

04-Mar-14 Banno, LLC Jack Henry & Associates, Inc. NA NA NA NA NA

04-Mar-14 Cellcast Middle East Binbit Factory SL NA NA NA NA NA

04-Mar-14 Ullink HgCapital NA NA NA NA NA

04-Mar-14 StickyStreet Inc. Mozido, LLC NA NA NA NA NA

04-Mar-14 OAISYS Mitel Networks Corporation NA NA NA NA NA

04-Mar-14 Junction Solutions / MCR division Microsoft Corporation NA NA NA NA NA

03-Mar-14 Intific, Inc. Cubic Corporation NA $14.0 NA NA NA

03-Mar-14 KnowledgeAdvisors, Inc. The Corporate Executive Board $52.0 NA NA NA NA

03-Mar-14 WebDAM ShutterStock, Inc. NA NA NA NA NA

03-Mar-14 Centershift, Inc. / Assets Yardi Systems, Inc. NA NA NA NA NA

03-Mar-14 Med Access, Inc. / Assets Telus Health Solutions NA NA NA NA NA

03-Mar-14 Telerus, Inc. Securus Technologies, Inc. NA NA NA NA NA

03-Mar-14 Xstream A/S / Majority Acquisition Capidea Management ApS NA NA NA NA NA

02-Mar-14 FreeWheel Media Inc. Comcast Corp. $320.0 $35.0 NA 9.1x NA

$ in millions


10

Date


Enterprise


Enterprise Value

Revenue EBITDA 28-Feb-14 TRUiST, Inc. / Assets FrontStream Payments, Inc. NA NA NA NA NA

27-Feb-14 MultiCorpora R.R. Donnelley & Sons Company NA NA NA NA NA

26-Feb-14 Identified, Inc. / Assets Workday, Inc. NA NA NA NA NA

26-Feb-14 Third Coast Holdings, Inc. / 62% Stake Wolters Kluwer Corporate Legal

Services $290.3 $57.0 NA 5.1x NA

26-Feb-14 BookFresh LLC Square, Inc. NA NA NA NA NA

26-Feb-14 Spatial Energy DigitalGlobe NA NA NA NA NA

25-Feb-14 Equipos / 80% Stake SimCorp A/S $17.2 NA NA NA NA

24-Feb-14 Get TVG Xumanii International Holdings Corp,

Inc. NA NA NA NA NA

24-Feb-14 Vericard Inc. Budget Center Inc. $2.1 NA NA NA NA

24-Feb-14 Booklr Vook Inc. NA NA NA NA NA

24-Feb-14 Veveo, Inc. Rovi Corporation $75.0 NA NA NA NA

24-Feb-14 Daxko / Majority Acquisition Pamlico Capital $70.0 $35.0 NA 2.0x NA

24-Feb-14 BlueKai, Inc. Oracle Corporation NA NA NA NA NA

24-Feb-14 StopTheHacker, Inc. CloudFlare, Inc. NA NA NA NA NA

24-Feb-14 GRASP Systems International / Assets Infor NA NA NA NA NA

24-Feb-14 PeopleLYNK Greenway Medical Technologies, Inc. NA NA NA NA NA

24-Feb-14 FTAPI Software GmbH / 51% Stake QSC AG NA NA NA NA NA

21-Feb-14 Trubiquity Rocket Software ND ND ND ND ND

21-Feb-14 Spider.io Google, Inc. NA NA NA NA NA

20-Feb-14 Tedemis Criteo SA $23.3 $11.0 NA 2.1x NA

19-Feb-14 Citessentials Impact Telecom NA NA NA NA NA

19-Feb-14 PhiSix Fashion Labs eBay, Inc. NA NA NA NA NA

19-Feb-14 Dachis Group Sprinklr Inc. NA NA NA NA NA

19-Feb-14 AIRTIME-Manager / Client base assets Bellefield Systems, LLC NA NA NA NA NA

19-Feb-14 ASPIDER Solutions Wyless Inc. NA NA NA NA NA

18-Feb-14 AFS Technologies Inc. / Majority Acquisition Court Square Capital Partners NA NA NA NA NA

18-Feb-14 Cognicient Blueocean Market Intelligence NA NA NA NA NA

18-Feb-14 Xora Inc. ClickSoftware Technologies Ltd. $14.7 $18.0 NA 0.8x NA

18-Feb-14 DAX Technologies Corp. / Business Assets Spirent Communications plc $37.0 NA NA NA NA

$ in millions


11

Date


Enterprise


Enterprise Value

Revenue EBITDA 18-Feb-14 uReach Technologies, Inc. GENBAND NA NA NA NA NA

17-Feb-14 Counterpoint Systems Ltd. Vistex Inc. NA NA NA NA NA

14-Feb-14 Retain International Ltd. Capita plc NA NA NA NA NA

14-Feb-14 Activation Energy EnerNOC Inc. NA NA NA NA NA

13-Feb-14 Transics International NV WABCO Holdings Inc. $135.5 $71.2 NA 1.9x NA

13-Feb-14 Entelios AG EnerNOC Inc. NA NA NA NA NA

13-Feb-14 Carbon Black Bit9, Inc. NA NA NA NA NA

13-Feb-14 Cernam Ltd. Daybreak Information Technologies NA NA NA NA NA

11-Feb-14 YOU Technology Brand Services, Inc. The Kroger Co. NA NA NA NA NA

11-Feb-14 Swishu Tinypass NA NA NA NA NA

11-Feb-14 SECUDE AG / FinallySecure Division EgoSecure NA NA NA NA NA

11-Feb-14 Ozefax Pty Ltd. j2 Global Inc. NA NA NA NA NA

11-Feb-14 Altruik SearchDex, Inc. NA NA NA NA NA

11-Feb-14 Talent Neuron The Corporate Executive Board NA NA NA NA NA

11-Feb-14 Bookt LLC RealPage, Inc. NA NA NA NA NA

10-Feb-14 Woodlands Solutions, LLC / Phoenix ETRM assets Quorum Business Solutions NA NA NA NA NA

10-Feb-14 Business Computer Applications, Inc. Acentia NA NA NA NA NA

10-Feb-14 Simplytics Integral Ad Science NA NA NA NA NA

10-Feb-14 IND Group Misys PLC NA NA NA NA NA

07-Feb-14 Maxwell Systems, Inc. Viewpoint Construction Software NA NA NA NA NA

06-Feb-14 Buy4Now Technology Group MyWebGrocer NA NA NA NA NA

06-Feb-14 Computer Guidance Corporation Explorer Software Inc. NA NA NA NA NA

06-Feb-14 Area9 Learning / 80% Stake McGraw-Hill Education NA NA NA NA NA

06-Feb-14 Alcatel-Lucent Enterprise / 85% Stake China Huaxin $313.6 NA NA NA NA

06-Feb-14 Interthinx, Inc. First American Financial Corporation $155.0 NA NA NA NA

06-Feb-14 Berry Consultants/Tessella/Facts Asset 50% Stake Berry Consultants, LLC NA NA NA NA NA

06-Feb-14 Azuki Systems Ericsson, Inc. NA NA NA NA NA

06-Feb-14 Grass Valley / Assets Belden Inc. $220.0 NA NA NA NA

05-Feb-14 Goldmail Inc. / Assets PointAcross, Inc NA NA NA NA NA

05-Feb-14 TRACKER Network (UK) Ltd / Assets Lysanda, Ltd. NA NA NA NA NA

$ in millions


12

Date


Enterprise


Enterprise Value

Revenue EBITDA 05-Feb-14 PC Scale Technologies AMCS Group NA NA NA NA NA

05-Feb-14 legodo ag Actuate Corporation NA NA NA NA NA

05-Feb-14 LeadRocket, Inc. Callidus Software Inc. $3.0 NA NA NA NA

05-Feb-14 Forte Design Systems Cadence Design Systems Inc NA NA NA NA NA

05-Feb-14 Octo Telematics SpA Renova Group $546.7 $165.2 NA 3.3x NA

04-Feb-14 UFIS Airport Solutions AS Amadeus IT Group SA NA NA NA NA NA

03-Feb-14 Strutta.com Media, Inc. LX Ventures $1.7 NA NA NA NA

03-Feb-14 Engrade, Inc. McGraw-Hill Education NA NA NA NA NA

03-Feb-14 S-GROUP Solutions AB / Alarmos Software Tekis AB NA NA NA NA NA

31-Jan-14 Sansio, Inc. Physio-Control, Inc. NA NA NA NA NA

30-Jan-14 Trendium, Inc. / Assets JDS Uniphase Corporation NA NA NA NA NA

30-Jan-14 Equitime Horizontal Software SAS NA NA NA NA NA

30-Jan-14 LoopFuse, Inc. Salesfusion Inc. NA NA NA NA NA

30-Jan-14 Accelrys Inc. Dassault Systèmes S.A. $646.6 $166.3 NA 3.9x NA

29-Jan-14 Tomfoolery, Inc. Yahoo! Inc. $16.0 NA NA NA NA

29-Jan-14 Eshbel Technologies Ltd. Fortissimo Capital $54.9 NA NA NA NA

29-Jan-14 Ninetowns Internet Technology Group Co. Ltd. Ninetowns Merger Sub Limited / MBO $69.8 $15.8 NA 4.4x NA

29-Jan-14 Digitalsmiths Corp. TiVo, Inc. $135.0 NA NA NA NA

29-Jan-14 Multiship / Software Platform Yandex $1.0 NA NA NA NA

28-Jan-14 Wapp6 CONJECT Holding GmbH NA NA NA NA NA

28-Jan-14 Applied Weather Technology StormGeo NA NA NA NA NA

28-Jan-14 AddOnAuto The Reynolds and Reynolds

Company NA NA NA NA NA

27-Jan-14 Meucci Solutions NV Keynote Systems, Inc. NA NA NA NA NA

24-Jan-14 Innoveo Solutions AG Pactera Technology International, Ltd. NA NA NA NA NA

24-Jan-14 The Higher Gear Group OneCommand NA NA NA NA NA

23-Jan-14 QA Studio, Inc. Dairy.com NA NA NA NA NA

23-Jan-14 Adayana, Inc. AVX Learning LLC NA NA NA NA NA

23-Jan-14 Mainstreet Commerce Demandware, Inc. NA NA NA NA NA

22-Jan-14 Push IO Inc. Responsys, Inc. NA NA NA NA NA

22-Jan-14 Scout Analytics, Inc. ServiceSource International, Inc. $32.0 $5.4 NA 5.9x NA

$ in millions


13

Date


Enterprise


Enterprise Value

Revenue EBITDA 22-Jan-14 ClickSquared, Inc. Zeta Interactive Corp NA NA NA NA NA

22-Jan-14 uberVU HootSuite Media, Inc. NA NA NA NA NA

22-Jan-14 Patrafee AB CPA Global Limited NA NA NA NA NA

22-Jan-14 Terra Imaging, LLC Sputnik Enterprises Inc NA NA NA NA NA

22-Jan-14 Integrasco Confirmit ASA NA NA NA NA NA

21-Jan-14 Mailrox Movable Ink NA NA NA NA NA

21-Jan-14 Coactiva Callcredit Information Group NA NA NA NA NA

21-Jan-14 Medigistics Etransmedia Technology, Inc. NA NA NA NA NA

21-Jan-14 API Healthcare Corporation General Electric Company NA NA NA NA NA

21-Jan-14 PICT POPSUGAR Inc. NA NA NA NA NA

21-Jan-14 PowerChalk LLC iOn America NA NA NA NA NA

21-Jan-14 iScore Golf, LLC Sputnik Enterprises Inc NA NA NA NA NA

21-Jan-14 Xquire Yuxi Pacific, LLC NA NA NA NA NA

21-Jan-14 CloudAsia Allied Wallet, Ltd. NA NA NA NA NA

20-Jan-14 Ventriloquist Voice Solutions International, Inc. Genesys Telecommunications

Laboratories NA NA NA NA NA

20-Jan-14 CampusIT Ltd. Ellucian Company L.P. NA NA NA NA NA

20-Jan-14 Telepo AB Aastra Technologies Limited NA NA NA NA NA

17-Jan-14 Lundalogik AB / Assets Monterro Holdings AB / Lundalogik

management / MBO NA $15.4 NA NA NA

17-Jan-14 Effective Companies / Assets GP Strategies Corporation NA $5.5 NA NA NA

17-Jan-14 IdenTrust, Inc. / Assets ASSA ABLOY AB NA NA NA NA NA

17-Jan-14 Unibased Systems Architecture, Inc. Streamline Health Solutions, Inc. NA NA NA NA NA

16-Jan-14 Applied Discovery / Assets Document Technologies Inc. NA NA NA NA NA

16-Jan-14 SmartLinc, Inc. Electronics for Imaging, Inc. NA NA NA NA NA

16-Jan-14 Intelligent SEO / Assets InSequent, Inc. NA NA NA NA NA

16-Jan-14 TDX Group Limited Equifax Inc. $327.0 $90.0 NA 3.6x NA

16-Jan-14 Pilat Media Ltd. / 77% Stake SintecMedia $104.3 $42.6 $5.5 2.4x 18.9x

15-Jan-14 Impermium Google, Inc. NA NA NA NA NA

15-Jan-14 Cobook SIA FullContact Inc. NA NA NA NA NA

15-Jan-14 CloudUp Networks CipherCloud NA NA NA NA NA

$ in millions


14

Date


Enterprise


Enterprise Value

Revenue EBITDA 14-Jan-14 thinkFolio, Ltd. Markit Group Limited NA NA NA NA NA

14-Jan-14 BOSS SOFTWARE Volaris Group NA NA NA NA NA

14-Jan-14 AmkaiSolutions, LLC Surgical Information Systems, LLC NA NA NA NA NA

14-Jan-14 EGS Group Ltd Proactis Group Ltd $3.6 NA NA NA NA

13-Jan-14 Visicom, Inc. AFS Technologies Inc. NA NA NA NA NA

13-Jan-14 Impendium Systems Deutsche Boerse Market Data +

Services NA NA NA NA NA

13-Jan-14 Unicom Techlabs Knowlarity Communications Pvt. Ltd. NA NA NA NA NA

13-Jan-14 iPartners LLC SNL Financial LC NA NA NA NA NA

13-Jan-14 Strategic AR Solutions, LLC Brightree LLC NA NA NA NA NA

13-Jan-14 VeriFone Holdings Inc. / KWI Cloud9 Mobile assets KWI, Inc. NA NA NA NA NA

13-Jan-14 Kadrige S.A. Cegedim Relationship Management NA NA NA NA NA

13-Jan-14 Omnitracs Europe B.V. / Assets Astrata Group Incorporated NA NA NA NA NA

10-Jan-14 Agilis International, Inc. Infogix NA NA NA NA NA

09-Jan-14 212 Labs, Inc. HireVue, Inc. NA NA NA NA NA

09-Jan-14 Media sites Ltd. / 74% Stake Sonic Foundry, Inc. $7.6 NA NA NA NA

09-Jan-14 Ubiquita, Inc. Equiinet Limited NA NA NA NA NA

08-Jan-14 Changepoint Marlin Equity Partners NA NA NA NA NA

08-Jan-14 PeopleAnswers, Inc. Infor Global Solutions NA $40.0 $10.0 NA NA

08-Jan-14 Archimedes Inc. / Assets Evidera NA NA NA NA NA

08-Jan-14 Integrated Broadband Services Momentum NA NA NA NA NA

08-Jan-14 InsightsOne Inc. Apigee Corp. NA NA NA NA NA

08-Jan-14 Production Modelling Ltd. Access Group NA NA NA NA NA

08-Jan-14 Comenta TV / Assets Wayin NA NA NA NA NA

07-Jan-14 LT Online Corporation Mitratech NA NA NA NA NA

07-Jan-14 AirPatrol Corporation Sysorex Global Holdings Corp $10.5 NA NA NA NA

07-Jan-14 Dialcom Networks, S.L / Spontania business ClearOne Communications, Inc. $5.0 NA NA NA NA

07-Jan-14 Relay Technology Management Decision Resources, LLC NA NA NA NA NA

07-Jan-14 Parature, Inc. Microsoft Corporation $100.0 NA NA NA NA

07-Jan-14 Inmar, Inc. / 51% Stake ABRY Partners LLC NA NA NA NA NA

$ in millions


15

Date


Enterprise


Enterprise Value

Revenue EBITDA 07-Jan-14 Auto Injury Solutions, Inc. / Assets CCC Information Services Group Inc. NA NA NA NA NA

06-Jan-14 On The Spot Systems, Inc. Press Ganey Associates, Inc. NA NA NA NA NA

06-Jan-14 Morta Security Palo Alto Networks, Inc. NA NA NA NA NA

06-Jan-14 Sense Networks, Inc. / Assets YP Holdings LLC NA NA NA NA NA

06-Jan-14 AutoSoft Srl Solera Holdings Inc. NA NA NA NA NA

06-Jan-14 KANA Software, Inc. Verint Systems Inc. $514.0 $137.0 NA 3.8x NA

06-Jan-14 eFueling Technologies / Assets Comdata NA NA NA NA NA

06-Jan-14 Unicorn Media / Assets Brightcove, Inc. $49.0 $5.0 NA 9.8x NA

06-Jan-14 Yub, Inc. Coupons, Inc. NA NA NA NA NA

06-Jan-14 Circuits.io Autodesk, Inc. NA NA NA NA NA

05-Jan-14 Global Healthcare Exchange, LLC Thoma Bravo LLC NA NA NA NA NA

03-Jan-14 Financial Tools, Inc. Wolters Kluwer Financial Services NA NA NA NA NA

02-Jan-14 CompassIM / assets Monsoon Commerce, Inc. NA NA NA NA NA

02-Jan-14 Twisted Pair Solutions, Inc. Motorola Solutions $36.0 NA NA NA NA

$ in millions

Q1 2014 Enterprise Application Software IPO Data

16

Company Gross Offering

Amount ($M)

% Net Proceeds

to Company Offer Price 1-Day 30-Day

Amber Road $96.1 64.7% $13.00 -1.5% -14.1%

Castlight Health $177.6 100.0% $16.00 148.8% 1.3%

Paylocity $119.8 71.0% $17.00 52.9% 13.9%

Q1 2014 Enterprise Application Software Public Company Valuation Metrics

17

Note: Analysis above delineates the SaaS bucket from All Enterprise Apps Companies separately. However, all buckets also include SaaS companies as appropriate.

“NM” denotes not material and is applied to multiples that are less than 0 or greater than 100.

Enterprise Application Software

Pricing Date 03/31/14 % of 52 Q/Q Rev Growth LTM Margins

Median Metrics Week Hi YoY Seq. Gross EBITDA LTM CY14E CY15E LTM CY14E CY15E

SaaS: Software as a Service 78% 24% 5% 66% 7% 7.4x 6.2x 5.2x 29.9x 19.7x 19.5x

CRM: Customer Relationship Management 79% 15% 12% 62% 8% 3.4x 3.0x 2.6x 15.0x 12.5x 11.5x

ERP: Enterprise Resource Planning 91% 7% 4% 61% 20% 4.1x 3.7x 3.6x 14.2x 12.8x 12.0x

HCM: Human Capital Management 80% 22% 10% 60% -5% 6.2x 5.3x 5.2x 50.3x 38.8x 30.7x

IM: Information Management 75% 10% 1% 69% 14% 3.0x 2.7x 2.5x 15.2x 12.2x 10.6x

PLM: Product Lifecycle Management 87% 8% 1% 80% 25% 4.3x 4.1x 3.7x 15.2x 12.9x 11.4x

SCM: Supply Chain Management 79% 6% 0% 59% 12% 5.2x 4.8x 4.8x 24.6x 20.7x 19.5x

Social Enterprise Applications 68% 29% 6% 66% -2% 6.0x 4.8x 3.9x NM 38.8x 28.6x

Vertical 87% 9% 4% 49% 21% 4.6x 3.8x 3.4x 15.8x 13.2x 12.1x

All Enterprise Apps Companies 83% 13% 5% 64% 16% 4.4x 3.9x 3.7x 16.3x 13.9x 12.7x

Financial Data Enterprise Value /

Revenues EBITDA(1)

Last Twelve Months

Enterprise Application Software Stock Price Performance

LTM Relative Enterprise Application Software Stock Price Performance

18

Mar-13 Jun-13 Aug-13 Nov-13 Jan-14 Mar-14-20%-20%

-10%-10%

0%0%

10%10%

20%20%

30%30%

40%40%

50%50%

60%60%

70%70%

80%80%

90%90%

SaaS Companies Socia l Companies CRM Companies ERP CompaniesHCM Companies Information Management Companies PLM Companies SCM CompaniesVertica l Companies NASDAQ Compos ite

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Q1 2014 Enterprise Application Software Market Snapshot

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