Tech-Enabled Services Monthly February 2016 · Tech-Enabled Services Headline Transactions...
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Tech-Enabled Services Headline Transactions Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA LTM Gross & EBITDA Margins 10.4x 12.1x 6.5x 7.4x 14.2x 13.1x 6.3x 0.0 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info Services VAR TEV / EBITDA 30.4% 33.0% 53.6% 19.4% 38.2% 60.5% 8.9% 10.6% 17.9% 33.0% 4.0% 25.1% 25.5% 3.4% 0% 10% 20% 30% 40% 50% 60% 70% 0% 10% 20% 30% 40% 50% 60% 70% ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info Services VAR LTM EBITDA Margin LTM Gross Margin Note: EBITDA Margins in red Target Acquirer Acquisition Synopsis IT Services • • APTEC provides identity governance and access management services, EPIC integrations, software solutions and Oracle database security Cyber Risk Management announced its investment in APTEC following investments in Sunera, ANRC and assets purchased from Kratos Defense & Security, to provide cyber security services to its client roster IT Services • • KBACE Technologies provides Oracle consulting, services, solutions, and products for clients that range from small to Fortune 500 companies Cognizant announced its acquisition of KBACE to strengthen its capabilities in delivering Oracle cloud solutions, further accelerating the Company's cloud strategy and consulting services IT Services • • Magnet 360, LLC provides Salesforce multi-cloud implementation strategies and consulting services to B2B, B2C and multi-channel clients Mindtree acquired Magnet 360, a Salesforce Premium partner, to strengthen its offerings in digital transformation programs and Customer Success Platform IT Services • • Oinio provides consulting and implementation services for cloud-based CRM solutions for clients in the life science, manufacturing, financial services and telecom industries Capgemini acquired Oinio to augment its digital transformation services around the Salesforce solutions and platform across Europe and Asia as part of the Company's digital growth strategy Information Services • • LDiscovery provides data collection and forensic investigation, assessment, electronic discovery and data processing, application software and hosting for web-based document and managed legal review The Carlyle Group, Revolution Group and management acquired LDiscovery, previously owned by WestView Capital, to fund the Company's continued growth both organically and through acquisition 1.0x 2.1x 1.9x 0.3x 2.9x 3.0x 0.2x 0.0 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 3.5x ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info Services VAR TEV / Revenue (2.9%) 8.0% 1.1% (1.4%) 6.0% 4.8% 2.3% (4%) (2%) 0% 2% 4% 6% 8% 10% ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info Services VAR 1-Year Revenue Growth Tech-Enabled Services Monthly February 2016 LTM Revenue Growth
Transcript of Tech-Enabled Services Monthly February 2016 · Tech-Enabled Services Headline Transactions...
Tech-Enabled Services Headline Transactions
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
LTM Gross & EBITDA Margins
10.4x
12.1x
6.5x 7.4x
14.2x 13.1x
6.3x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ EBI
TDA
30.4% 33.0%
53.6%
19.4%
38.2%
60.5%
8.9% 10.6%
17.9%
33.0%
4.0%
25.1% 25.5%
3.4% 0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
LTM EBITDA M
arginLTM
Gro
ss M
argi
n
Note: EBITDA Margins in red
Target Acquirer Acquisition Synopsis
IT Services
•
•
APTEC provides identity governance and access management services, EPIC integrations, software solutions and Oracle database securityCyber Risk Management announced its investment in APTEC following investments in Sunera, ANRC and assets purchased from Kratos Defense & Security, to provide cyber security services to its client roster
IT Services
•
•
KBACE Technologies provides Oracle consulting, services, solutions, and products for clients that range from small to Fortune 500 companiesCognizant announced its acquisition of KBACE to strengthen its capabilities in delivering Oracle cloud solutions, further accelerating the Company's cloud strategy and consulting services
IT Services
•
•
Magnet 360, LLC provides Salesforce multi-cloud implementation strategies and consulting services to B2B, B2C and multi-channel clientsMindtree acquired Magnet 360, a Salesforce Premium partner, to strengthen its offerings in digital transformation programs and Customer Success Platform
IT Services
•
•
Oinio provides consulting and implementation services for cloud-based CRM solutions for clients in the life science, manufacturing, financial services and telecom industries Capgemini acquired Oinio to augment its digital transformation services around the Salesforce solutions and platform across Europe and Asia as part of the Company's digital growth strategy
Information Services
•
•
•
LDiscovery provides data collection and forensic investigation, assessment, electronic discovery and data processing, application software and hosting for web-based document and managed legal review The Carlyle Group, Revolution Group and management acquired LDiscovery, previously owned by WestView Capital, to fund the Company's continued growth both organically and through acquisition
1. Headline Transactions
1.0x
2.1x 1.9x
0.3x
2.9x 3.0x
0.2x
0.0
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ Rev
enue
10%
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
(2.9%)
8.0%
1.1%
(1.4%)
6.0% 4.8%
2.3%
(4%)
(2%)
0%
2%
4%
6%
8%
10%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
1-Ye
ar R
even
ue G
row
th
Tech-Enabled Services MonthlyFebruary 2016
LTM Revenue Growth
Selected TM Capital Tech-Enabled Services Experience TM Capital’s Tech-Enabled Services Contacts
Bradford A. Adams Managing Director
617-259-2203 [email protected]
Jarrad S. Zalkin Managing Director
617-259-2207 [email protected]
Andrew O. Redmond Vice President 617-259-2215
Annc. Date Sector Acquirer Target DescriptionEnterprise
Value Comments01/27/16 Managed
ServicesKellton Tech Solutions Limited
Bokanyi Consulting, Inc.
Provides selection, implementation,optimization and application support servicesfor enterprise resource planning
NA Kellton Tech acquired Bokanyi Consulting, a certifiedSAP Partner Center of Expertise, to diversify itscustomer base and SMAC capabilities
01/26/16 Transaction Processing
Total System Services, Inc.
TransFirst Holdings Corp.
Provides payment transaction processingservices and payment enabling technologies
$3,413.3 Total System Services announced it entered into adefinitive agreement to acquire TransFirst, a VistaEquity Partners portfolio company, to increase its scaleand presence in the merchant space
01/25/16 IT Services PwC Limited Praxism Limited Provides cyber security consulting, training,support and managed services for identity andaccess management
NA PwC announced its acquisition of Praxism UK tostrengthen its cyber security offering, particularlyaround identity and access management
01/23/16 IT Services Comviva Technologies Limited
Advanced Technology Solutions, Inc.
Provides staffing solutions and networkdevelopment and business operation services,including system integration and networkmanagement services
NA Comviva acquired a controlling stake in AdvancedTechnology Solutions to expand its geographic reach tothe LATAM market
01/20/16 Managed Services
TierPoint, LLC CoSentry, Inc. Provides data center services and solutions NA TierPoint entered a definitive agreement to acquireCoSentry, a TA Associates portfolio company, toexpand its data center footprint and service offering
01/14/16 Managed Services
Anexinet Corp. ListenLogic, LLC Provides risk and corporate reputationmonitoring, social customer relationshipmanagement and structured data streams andpharmaceutical and healthcare solutions
NA Anexinet, a Marlin Equity Partners portfolio company,announced its acquisition of ListenLogic to enhance itsservices and solutions portfolio related to its digital andcustomer analytics solutions
01/06/16 Managed Services
Presidio, Inc. Netech Corporation
Offers collaboration solutions, borderlessnetwork solutions and physical securityservices
NA Presidio acquired Netech, a Cisco Partner, to expand itspresence in the Midwestern U.S. while also providingsignificant cross-selling opportunities
3. TES Transactions
Select Tech-Enabled Services Transactions Announced in January 2016
www.tmcapital.com /technology
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02145Tel: 617.259.2200
Atlanta3575 Piedmont Road NESuite 1010Atlanta, GA 30305 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
3.5x
10.4x
12.1x
7.4x
6.5x
14.2x
13.1x
6.3x3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Jan 2016
TEV
/ EBI
TDA
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
Notes: USD in millions Source: Capital IQ, Company SEC Filings, industry research and TM Capital estimates
