Technology John McDonald M&A · PDF file05/08/17 Intel Corp. Technology Hardware Fixed Income...

Technology M&A Report

Q2 2017

HYDE PARK CAPITAL

Member FINRA/SIPC

Investment Banking | Mergers & Acquisitions | Capital Raising

Hyde Park Capital Advisors, LLC 701 N. Franklin Street

Tampa, FL 33602 Tel: 813-383-0202

www.hydeparkcapital.com

John Hill Senior Managing Director [email protected] (813) 383-0205 John McDonald Senior Managing Director [email protected] (813) 383-0206 Keith Hodgdon Managing Director [email protected] (813) 383-0208 Greg Bosl Vice President [email protected] (813) 597-2649 Jami Gold Vice President [email protected] (813) 383-0203 Charlie Hendrick Vice President [email protected] (813) 383-0207 Jeffrey Hendricks Vice President – Business Development [email protected] (678) 523-3073

HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising

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Jun-16 Sep-16 Dec-16 Mar-17 Jun-17

S&P Global Information Technology Index Nasdaq S&P 500

Public Market Performance (LTM)

Select Technology Public Offerings (Q2 2017)

Market Performance by Sector

Source: S&P Capital IQ

2

Capital Markets Overview

The S&P Global Information Technology Index increased 34.1% during the twelve month period ended June 30, 2017, while the Nasdaq and the S&P 500 increased 26.3% and 15.2%, respectively.

IPO activity in the Technology industry increased during Q2 2017 after a slow 2016. Cloudera, Inc. (NYSE:CLDR), which operates a data management, machine learning, and analytics software platform, raised $225 million in the largest IPO of the quarter.

The Software-as-a-Service (SaaS), Software Bellwethers and Application Software (Horizontal) sectors were the industry’s leaders with respect to valuation during Q2 2017, trading at revenue multiples of 6.5x, 5.3x, and 5.2x, respectively.

Commentary

34.1%

15.2%

26.3%

Industry Sector 3 Months 12 months Revenue EBITDA

Software Bellwethers 4.4% 25.8% 5.3x 15.7x

Application Software (Horizontal) 4.8% 20.9% 5.2x 21.3x

Application Software (Vertical) 10.0% 18.8% 5.0x 18.5x

Software-as-a-Service (SaaS) 12.0% 25.1% 6.5x 39.5x

Data & Analytics 5.5% 18.7% 3.9x 17.3x

Infrastructure Services 2.7% 24.4% 4.1x 15.8x

Technology Hardware 0.0% 36.1% 1.1x 8.2x

IT Services 11.7% 18.7% 2.7x 13.7x

Internet 7.7% 33.2% 3.7x 19.7x

Resellers & Wholesalers 3.3% 30.8% 0.3x 9.4x

Median

Change in Stock Price Enterprise Value / LTM

Offer Date Issuer Industry Sector

Transaction

Type

Transaction

Value ($mm)

06/13/17 Apple, Inc. Technology Hardware Fixed Income $10,767

05/08/17 Intel Corp. Technology Hardware Fixed Income $7,090

05/04/17 GoDaddy, Inc. Internet Secondary $928

04/27/17 Cloudera, Inc. Internet IPO $225

04/06/17 Okta, Inc. Internet IPO $187

04/26/17 TrueCar, Inc. Internet Secondary $149

04/12/17 Yext, Inc. Internet IPO $116

05/24/17 Appian Corp. Software IPO $75

06/29/17 Tintri, Inc. Internet IPO $60

05/23/17 SMART Global Holdings, Inc. Technology Hardware IPO $58


$53.0

$35.1

$22.3

$42.2

$47.6

$39.0

$42.4

$48.4$51.7

$47.0

$21.1 $21.5

$0

$10

$20

$30

$40

$50

$60

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H 2016 1H 2017

Deal Size Volume Value Volume Value Volume Value

Less than $100M 99 $3.3 75 $2.7 (24%) (18%)

$100 - $499M 43 $9.9 33 $7.0 (23%) (30%)

$500 - $1,000M 12 $7.9 16 $11.8 33% 50%

Total Middle Market 154 $21.1 124 $21.5 (19%) 2%

% of Total Market

Less than $100M 64% 16% 60% 13%

$100 - $499M 28% 47% 27% 32%

$500 - $1,000M 8% 37% 13% 55%

Total Middle Market 100% 100% 100% 100%

1H 2016 1H 2017 % Change

447

372

254

365 376

350

271

372 383

269

154

124

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100

200

300

400

500

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H 2016 1H 2017

Middle Market M&A Transactions by Deal Size – Technology

U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE

Annual Middle Market M&A Activity – Technology

3

As detailed in the charts below, Middle Market M&A activity in the Technology industry fell during the first half of 2017 to 124 closed transactions, a 19% decline from the 154 transactions closed during the first half of 2016.

The total value of completed Middle Market M&A transactions

in the Technology industry increased by 2% during the first half of 2017 to $21.5 billion, up from $21.1 billion during the prior year period.

Transactions valued between $500 million and $1,000 million saw the largest increase in both deal volume (up 33%) and deal value (up 50%) compared to the prior year period.

Commentary

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)

Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M

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($ in

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($ in billions)


$11.2

$13.5$12.9

$11.8

$10.2

$13.1

$16.6

$10.9$10.2

$11.4

$14.6

$8.5

$13.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3'15 Q4'15 Q1 '16 Q2 '16 Q3 '16 Q4'16 Q1'17 Q2'17

93

84

98

93 94

82

114

83

71

52

63

52

72

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120

Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3'15 Q4'15 Q1 '16 Q2 '16 Q3 '16 Q4'16 Q1'17 Q2'17

Quarterly Middle Market M&A Activity – Technology

U.S. Middle Market M&A Activity – Quarterly Trends: VALUE U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME

Middle Market M&A Transactions by Deal Size – Technology

4

Middle Market M&A activity in the Technology industry increased during Q2 2017 compared with Q2 2016. Deal volume rose 1% to 72 completed transactions in Q2 2017, while the total value of completed transactions increased 27% to $13.0 billion.

Transactions valued between $500 million and $1 billion saw the largest increase during Q2 2017, as deal volume increased 57% and total value of completed transactions jumped 71% compared with the prior year period.

The size of completed transactions increased during Q2 2017 as transactions valued between $100 million and $1 billion accounted for 43% of the completed deal volume, up from 38% during Q2 2016.

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)

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Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M

Commentary

($ in billions)

Deal Size Volume Value Volume Value Volume Value

Less than $100M 44 $1.4 41 $1.5 (7%) 8%

$100 - $499M 20 $4.3 20 $3.7 0% (13%)

$500 - $1,000M 7 $4.5 11 $7.8 57% 71%

Total Middle Market 71 $10.2 72 $13.0 1% 27%

% of Total Market

Less than $100M 62% 13% 57% 11%$100 - $499M 28% 42% 28% 29%$500 - $1,000M 10% 45% 15% 60%

Total Middle Market 100% 100% 100% 100%

Q2 2016 Q2 2017 % Change


Recent M&A Activity – Technology

Select Announced M&A Transactions (Q2 2017)

5

Source: S&P Capital IQ.

Announced Date Target Buyer Industry

Enterprise

Value ($mm)

EV /

Revenue

EV /

EBITDA

06/29/17 Lapis Software Associates, LLC Scientific Games Corp. Software NA NA NA

06/28/17 PayLease, LLC Vista Equity Partners IT Services NA NA NA

06/28/17 Intrepid Pursuits, LLC Accenture plc Software NA NA NA

06/27/17 Night Flight Networks, LLC Innovativ Media Group, Inc. Internet NA NA NA

06/23/17 Synchronoss Technologies, Inc. Siris Capital Group Software $986.1 2.1x 18.2x

06/20/17 3SI Security Systems, Inc. LLR Partners Technology Hardware NA NA NA

06/16/17 Trooly, Inc. Airbnb, Inc. Internet NA NA NA

06/16/17 VRB Samsung Electronics Co., Ltd. Software NA NA NA

06/14/17 NexTraq, Inc. Michelin North America, Inc. Internet NA NA NA

06/13/17 ViaWest, Inc. Peak 10 Holding Corp. IT Services $1,675.0 NA NA

06/12/17 NextNine Ltd. Honeywell Intl., Inc. Software NA NA NA

06/08/17 Foodler, Inc. GrubHub, Inc. Software NA NA NA

06/08/17 Hexadite Ltd. Microsoft Corp. Internet NA NA NA

06/08/17 Sous, Inc. BlueCart, Inc. Software NA NA NA

06/06/17 Westcon Group, Inc. SYNNEX Corp. IT Services $921.2 NA 10.4x

06/05/17 Placed, Inc. Snap, Inc. Internet NA NA NA

06/02/17 Vyatta, Inc. AT&T, Inc. Software NA NA NA


Announced Date Target Buyer Industry

Enterprise

Value ($mm)

EV /

Revenue

EV /

EBITDA

05/30/17The Yield Book Inc. /

Citigroup Index, LLCFTSE Intl. Ltd. Software $685.0 6.4x 14.9x

05/30/17 Xactly Corp. Vista Equity Partners Internet $532.7 5.5x NA

05/29/17 CardConnect Corp. First Data Corp. IT Services $716.3 1.2x 26.6x

05/23/17 GENBAND US, LLC Sonus Networks, Inc. Software $412.0 1.0x 17.5x

05/11/17 Active Corp. Garmin Ltd. Software NA NA NA

05/10/17 Dominion Web Solutions, LLCGoldman Sachs MBD /

Eurazeo Internet $680.0 NA NA

05/10/17 Craftsy, Inc. NBCUniversal Cable Entertainment Group Internet NA NA NA

05/10/17 Owlchemy Labs, LLC Alphabet, Inc. Software NA NA NA

05/09/17 LLamasoft, Inc. TPG Capital Software NA NA NA

05/03/17 Lexmark's Enterprise Software Business Thoma Bravo Software $1,350.0 0.3x NA

05/01/17 Angie's List, Inc. HomeAdvisor, Inc. Internet $574.4 1.8x 51.6x

05/01/17 Jive Software, Inc. Wave Systems Corp. Software $343.5 1.7x 69.1x

04/17/17 Wilcon Holdings, LLC Crown Castle Intl. Corp. IT Services $600.0 NA NA

04/17/17 American Traffic Solutions, Inc. Platinum Equity Technology Hardware NA NA NA

04/10/17 Xcerra Corp. Unic Capital Management Co., Ltd. Technology Hardware $463.1 1.4x 31.1x

04/10/17 RetailMeNot, Inc. Harland Clarke Holdings Corp. Internet $455.1 1.5x 14.8x

04/03/17 Telvent DTN, LLC TBG AG Software $900.0 4.2x NA

Recent M&A Activity – Technology

Select Announced M&A Transactions (Q2 2017)

6



Q2 2016 Q2 2017

Q2 2016 Q2 2017

24

13

19

16

19

7

25

20

0 5 10 15 20 25 30

Technology Hardware

IT Services

Internet

Software*

$5.2

$1.8

$3.3

$2.7

$3.1

$0.3

$3.0

$3.8

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0

Technology Hardware

IT Services

Internet

Software*

M&A Activity by Technology Sector

% Change

% Change

U.S. Middle Market M&A Activity by Technology Sector: VALUE

7

U.S. Middle Market M&A Activity by Technology Sector: VOLUME

($ in millions)

24%

20%

30%

477%

68%

11%

86%

Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion). *Includes Enterprise Software and Infrastructure Software industry sectors.

26%


Announced

Date Target Buyer Industry

Enterprise

Value ($mm)

06/28/17 PayLease, LLC Vista Equity Partners IT Services NA

06/23/17 Synchronoss Technologies, Inc. Siris Capital Group Software $986

06/22/17 Loci Controls, Inc. Turnbridge Capital Technology Hardware NA

06/21/17 ARI Network Services, Inc. True Wind Capital Internet $138

06/20/17 3SI Security Systems, Inc. LLR Partners Technology Hardware NA

06/07/17 Riskonnect, Inc. Thoma Bravo Internet NA

06/02/17 Sage Payment Solutions, Inc. GTCR Software $260

06/02/17By Light Professional IT

Services, Inc.Sagewind Capital IT Services NA

05/30/17 Xactly Corp. Vista Equity Partners Internet $533

05/10/17 Dominion Web Solutions, LLCGoldman Sachs MBD /

EurazeoInternet $680

05/09/17 LLamasoft, Inc. TPG Capital Software NA

05/05/17 Osurv, Inc. Tan Capital Partners Internet NA

05/03/17Lexmark's Enterprise Software

BusinessThoma Bravo Software $1,350

04/17/17 American Traffic Solutions, Inc. Platinum Equity Technology Hardware NA

04/12/17 Zyme Solutions, Inc. Insight Venture Partners Internet NA

04/12/17Bankruptcy Management

Solutions, Inc.Stone Point Capital Software NA

04/04/17 Global HR Research, LLC Renovo Capital Software $30

12

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5

10

15

20

25

Software Internet IT Services Technology Hardware

Select Announced Private Equity Transactions (Q2 2017)

Financial Sponsors Industry Transactions

Private Equity Activity – Technology N

um

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of

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Financial sponsors were active across many sectors of the Technology industry during Q2 2017, as shown in the table to the right.

Several notable private equity backed deals were announced during the quarter, including: Thoma Bravo’s announced acquisition of Lexmark’s Enterprise Software Business for over $1.3 billion; Siris Capital Group’s proposed purchase of Synchronoss Technologies, Inc. for $986 million; and Vista Equity Partner’s announced acquisition of Xactly Corp. for $533 million.

During Q2 2017, financial sponsors were most active in the Internet and Software sectors, announcing 22 and 12 transactions, respectively.

Commentary



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Application Software (Horizontal) S&P 500

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130%


Application Software (Vertical) S&P 500

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140%


Software Bellwethers S&P 500

Industry Sector Overview – Recent Stock Price Performance

Application Software (Horizontal)

Commentary

9

Software Bellwethers

Application Software (Vertical)


The charts included on the following pages detail the recent stock price performance by sector for the leading public companies within the Technology industry for the 12-month period ended June 30, 2017. The shaded section represents Q2 2017.

During the 12-month period ending June 30, 2017, all sectors in the Technology industry had a positive performance, led by Technology Hardware, Internet and Value Added Resellers & Wholesalers which increased 36.1%, 33.2% and 30.8%, respectively.

All sectors within the Technology industry increased during Q2 2017. The IT Services, Application Software (vertical), and Internet sectors increased the most, rising 11.7%, 10.0% and 7.7%, respectively.

15.2%

25.8%

20.9%

15.2%

18.8%

15.2%


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140%


Infrastructure Software S&P 500

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Technology Hardware S&P 500

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Data & Analytics S&P 500

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Software-as-a-Service (SaaS) S&P 500


Infrastructure Software

Software-as-a-Service (SaaS)

10

Data & Analytics

Technology Hardware


24.4%

15.2%

15.2%

15.2%

15.2%

25.1% 18.7%

36.1%


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150%


Internet S&P 500

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130%


IT Services S&P 500


IT Services

11

Internet


15.2%

15.2%

18.7% 33.2%

Value Added Resellers & Wholesalers

30.8%

15.2%

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130%

140%


VARs & Wholesalers S&P 500


Industry Sector Overview – Public Company Analysis

($ in millions, except per share)

12

Software Bellwethers

Source: S&P Capital IQ *Excluded from the average and median calculation.

Closing Price % of 52 Equity Enterprise

Company Ticker 6/30/17 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAGoogle, Inc. GOOG $908.73 92.0% $635,554 $547,052 $94,765 $57,480 $31,208 60.7% 32.9% 5.8x 17.5xMicrosoft Corp. MSFT $68.93 94.6% $541,945 $506,364 $87,247 $53,463 $28,800 61.3% 33.0% 5.8x 17.6xOracle Corp. ORCL $50.14 96.7% $211,440 $203,657 $37,728 $22,062 $14,669 58.5% 38.9% 5.4x 13.9xIBM Corp. IBM $153.83 84.2% $146,843 $179,055 $79,390 $37,381 $17,944 47.1% 22.6% 2.3x 10.0xSAP AG DB:SAP $104.78 95.3% $125,628 $126,459 $24,186 $16,919 $6,293 70.0% 26.0% 5.2x 20.1xCisco Systems, Inc. CSCO $31.30 90.5% $158,339 $122,835 $48,510 $30,778 $15,048 63.4% 31.0% 2.5x 8.2xsalesforce.com, Inc. CRM $86.60 94.1% $61,058 $60,374 $8,863 $6,475 $449 73.1% 5.1% 6.8x* 134.5x*HP, Inc. HPQ $17.48 89.3% $30,101 $30,701 $49,473 $9,094 $4,301 18.4% 8.7% 0.6x* 7.1x*

Average 92.1% $238,863 $222,062 $53,770 $29,207 $14,839 56.5% 24.8% 4.5x 14.5x

Median 93.0% $152,591 $152,757 $48,992 $26,420 $14,859 61.0% 28.5% 5.3x 15.7x

Enterprise Value /

LTM LTM Margins LTM



Communication Software


13


Enterprise Software



Company Ticker 6/30/17 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA

Nuance Communications, Inc. NUAN $17.41 87.4% $4,972 $6,770 $1,971 $1,191 $414 60.4% 21.0% 3.4x 16.3x

BroadSoft, Inc. BSFT $43.05 88.9% $1,292 $1,196 $347 $252 $26 72.5% 7.5% 3.4x 45.8x

Synchronoss Technologies, Inc. SNCR $16.45 32.9% $717 $840 $477 $283 $54 59.3% 11.4% 1.8x 15.5x

MobileIron, Inc. MOBL $6.05 89.3% $531 $440 $168 $138 ($54) 81.9% (32.3%) 0.9x NA

Average 74.6% $1,878 $2,312 $741 $466 $110 68.5% 1.9% 2.9x 25.9x

Median 88.2% $1,004 $1,018 $412 $267 $40 66.5% 9.5% 3.4x 16.3x

Enterprise Value /

LTM LTM Margins LTM



Oracle Corp. ORCL $50.14 96.7% $211,440 $206,463 $37,728 $22,062 $14,669 58.5% 38.9% 5.5x 14.1x

IBM Corp. IBM $153.83 84.2% $146,843 $179,055 $79,390 $37,381 $17,944 47.1% 22.6% 2.3x 10.0x

SAP SE DB:SAP $104.78 95.3% $125,628 $126,459 $24,186 $16,919 $6,293 70.0% 26.0% 5.2x 20.1x

Adobe Systems, Inc. ADBE $141.44 95.9% $71,000 $67,957 $6,526 $5,630 $2,141 86.3% 32.8% 10.4x* 31.7x

Intuit, Inc. NASDAQGS:INTU $132.81 92.4% $34,597 $33,504 $5,089 $4,306 $1,580 84.6% 31.0% 6.6x 21.2x

Constellation Software, Inc. TSX:CSU $521.99 93.6% $11,062 $10,937 $2,193 $822 $431 37.5% 19.6% 5.0x 25.4x

Sage Group plc LSE:SGE $8.94 85.2% $9,689 $10,112 $2,160 $2,016 $619 93.3% 28.7% 4.7x 16.3x

Open Text Corp. OTEX $31.54 89.6% $7,896 $10,067 $2,111 $1,521 $594 72.0% 28.1% 4.8x 16.9x

TOTVS S.A. BOVESPA:TOTS3 $9.12 90.2% $1,499 $1,625 $694 $416 $80 59.9% 11.5% 2.3x 20.3x

Average 91.5% $68,850 $71,798 $17,786 $10,119 $4,928 67.7% 26.6% 4.5x 19.6x

Median 92.4% $34,597 $33,504 $5,089 $4,306 $1,580 70.0% 28.1% 4.9x 20.1x

Enterprise Value /

LTM LTM Margins LTM



Human Capital Management (HCM)


14


Marketing Software




salesforce.com, Inc. CRM $86.60 94.1% $61,058 $60,374 $8,863 $6,475 $449 73.1% 5.1% 6.8x 134.5x

Criteo SA CRTO $49.05 87.6% $3,249 $3,045 $1,915 $684 $179 35.7% 9.3% 1.6x 17.0x

HubSpot, Inc. HUBS $65.75 83.8% $2,339 $2,217 $294 $229 ($36) 77.9% (12.2%) 7.5x NA

Callidus Software, Inc. CALD $24.20 97.4% $1,471 $1,287 $216 $134 ($8) 61.7% (3.5%) 5.9x NA

Bazaarvoice, Inc. BV $4.95 80.7% $411 $352 $201 $125 ($5) 62.0% (2.4%) 1.7x NA

ChannelAdvisor Corp. ECOM $11.55 72.6% $298 $236 $115 $88 ($7) 76.1% (6.4%) 2.0x NA

Average 86.0% $11,471 $11,252 $1,934 $1,289 $95 64.4% (1.7%) 4.3x 75.8x

Median 85.7% $1,905 $1,752 $255 $181 ($6) 67.5% (3.0%) 4.0x 75.8x

Enterprise Value /

LTM LTM Margins LTM



Paychex, Inc. PAYX $56.94 90.3% $20,646 $20,298 $3,151 $2,232 $1,367 70.8% 43.4% 6.4x 14.9x

Workday, Inc. WDAY $97.00 92.6% $19,452 $17,878 $1,702 $1,190 ($242) 69.9% (14.2%) 10.5x NA

The Ultimate Software Group, Inc. ULTI $210.06 93.1% $6,409 $6,334 $823 $505 $63 61.4% 7.6% 7.7x 101.0x

Paycom Software, Inc. PAYC $68.41 92.9% $4,037 $3,975 $359 $306 $79 85.3% 22.1% 11.1x 50.1x

Paylocity Holding Corp. PCTY $45.18 91.0% $2,319 $2,218 $284 $166 $17 58.6% 5.8% 7.8x 133.7x

Cornerstone OnDemand, Inc. CSOD $35.75 74.9% $2,004 $1,954 $435 $297 ($42) 68.3% (9.6%) 4.5x NA

Benefitfocus, Inc. BNFT $36.35 80.8% $1,089 $1,140 $243 $120 ($13) 49.3% (5.4%) 4.7x NA

Xactly Corp. XTLY $15.65 97.2% $487 $455 $97 $59 ($12) 61.3% (12.6%) 4.7x NA

Average 89.1% $7,055 $6,781 $887 $609 $152 65.6% 4.6% 7.2x 74.9x

Median 91.8% $3,178 $3,097 $397 $302 $2 64.8% 0.2% 7.1x 75.6x

Enterprise Value /

LTM LTM Margins LTM



PLM & Engineering Software


15


Supply Chain & Logistics Software




Manhattan Associates, Inc. MANH $48.06 70.7% $3,430 $3,329 $598 $351 $202 58.8% 33.8% 5.6x 16.5x

The Descartes Systems Group, Inc. TSX:DSG $24.28 92.0% $1,859 $1,804 $209 $153 $70 72.9% 33.5% 8.6x 25.8x

Kinaxis, Inc. TSX:KXS $62.12 87.8% $1,623 $1,481 $121 $83 $20 68.7% 16.7% 12.2x 73.1x

SPS Commerce, Inc. SPSC $63.76 85.2% $1,105 $951 $200 $133 $21 66.5% 10.5% 4.8x 45.2x

Amber Road, Inc. AMBR $8.57 69.7% $231 $239 $75 $39 ($12) 51.7% (15.6%) 3.2x NA

Park City Group, Inc. PCYG $12.15 71.5% $243 $233 $18 $13 $4 72.7% 23.2% 13.3x 57.1x

American Software, Inc. AMSW.A $10.29 85.1% $304 $219 $106 $55 $14 51.9% 13.6% 2.1x 15.2x

SciQuest, Inc. SQI $51.15 94.8% $209 $214 $202 $68 $16 33.9% 8.0% 1.1x 13.2x

Average 82.1% $1,125 $1,059 $191 $112 $42 59.6% 15.5% 6.3x 35.1x

Median 85.1% $705 $595 $161 $76 $18 62.7% 15.1% 5.2x 25.8x

Enterprise Value /

LTM LTM Margins LTM



Autodesk, Inc. ADSK $100.82 87.9% $22,339 $22,019 $2,005 $1,671 ($294) 83.3% (14.7%) 11.0x NA

Dassault Systèmes SE ENXTPA:DSY $89.55 91.9% $23,052 $21,096 $3,340 $2,836 $897 84.9% 26.9% 6.3x 23.5x

Synopsys, Inc. SNPS $72.93 95.2% $11,278 $10,564 $2,582 $2,070 $497 80.2% 19.3% 4.1x 21.2x

Ansys, Inc. ANSS $121.68 93.7% $10,739 $9,872 $1,016 $906 $455 89.2% 44.8% 9.7x 21.7x

Cadence Design Systems, Inc. CDNS $33.49 93.8% $9,539 $9,685 $1,845 $1,589 $408 86.1% 22.1% 5.2x 23.7x

PTC, Inc. NASDAQGS:PTC $55.12 91.5% $6,349 $6,794 $1,143 $814 $91 71.2% 7.9% 5.9x 75.0x*

Aspen Technology, Inc. AZPN $55.26 85.9% $4,347 $4,385 $473 $426 $218 90.0% 46.2% 9.3x 20.1x

Nemetschek SE XTRA:NEM $74.39 91.5% $2,864 $2,855 $382 $200 $83 52.2% 21.6% 7.5x 34.5x

AVEVA Group plc LSE:AVV $25.20 90.3% $1,616 $1,452 $270 $252 $65 93.4% 24.2% 5.4x 22.2x

Average 91.3% $10,236 $9,858 $1,451 $1,196 $269 81.2% 22.0% 7.2x 23.9x

Median 91.5% $9,539 $9,685 $1,143 $906 $218 84.9% 22.1% 6.3x 22.2x

Enterprise Value /

LTM LTM Margins LTM



Energy Software


16


Financial Software




Fidelity National Information Services, Inc. FIS $85.40 97.8% $28,310 $37,222 $9,315 $3,053 $2,383 32.8% 25.6% 4.0x 15.6x

Fiserv, Inc. FISV $122.34 96.3% $27,144 $31,474 $5,568 $2,591 $1,742 46.5% 31.3% 5.7x 18.1x

MSCI, Inc. MSCI $102.99 94.2% $9,727 $11,106 $1,173 $917 $587 78.1% 50.0% 9.5x* 18.9x

SS&C Technologies Holdings, Inc. SSNC $38.41 97.7% $7,957 $10,292 $1,565 $724 $556 46.2% 35.6% 6.6x 18.5x

Jack Henry & Associates, Inc. JKHY $103.87 97.6% $8,160 $8,167 $1,414 $609 $505 43.1% 35.7% 5.8x 16.2x

Black Knight Financial Services, Inc. BKFS $40.95 97.0% $2,784 $5,296 $1,042 $462 $350 44.3% 33.6% 5.1x 15.1x

Envestnet, Inc. ENV $39.60 95.5% $1,704 $1,950 $604 $170 $51 28.1% 8.5% 3.2x 38.1x*

Q2 Holdings, Inc. QTWO $36.95 91.2% $1,480 $1,398 $161 $79 ($19) 48.8% (11.6%) 8.7x NA

Bottomline Technologies, Inc. EPAY $25.69 90.6% $974 $1,013 $344 $188 $29 54.8% 8.5% 2.9x 34.6x*

Average 95.3% $9,804 $11,991 $2,354 $977 $687 47.0% 24.1% 5.2x 17.1x

Median 96.3% $7,957 $8,167 $1,173 $609 $505 46.2% 31.3% 5.4x 17.1x

Enterprise Value /

LTM LTM Margins LTM



AVEVA Group plc LSE:AVV $25.20 90.3% $1,616 $1,452 $270 $252 $65 93.4% 24.2% 5.4x 22.2x

Pason Systems, Inc. TSX:PSI $14.88 86.5% $1,258 $1,135 $130 $72 $25 55.2% 18.9% 8.7x 46.1x

Silver Spring Networks, Inc. SSNI $11.28 73.2% $585 $469 $313 $138 ($12) 44.2% (3.9%) 1.5x NA

EnerNOC, Inc. ENOC $7.75 100.0% $229 $273 $399 $158 ($0) 39.5% (0.1%) 0.7x* NA

Average 87.5% $922 $832 $278 $155 $19 58.1% 9.8% 5.2x 34.2x

Median 88.4% $922 $802 $291 $148 $12 49.7% 9.4% 5.4x 34.2x

Enterprise Value /

LTM LTM Margins LTM



Healthcare IT


17


Public Sector / Non-Profit Software




Constellation Software, Inc. TSX:CSU $521.99 93.6% $11,062 $10,937 $2,193 $822 $431 37.5% 19.6% 5.0x 25.4x

Tyler Technologies, Inc. TYL $175.67 98.6% $6,838 $6,754 $776 $368 $168 47.4% 21.7% 8.7x 40.1x

Blackbaud, Inc. BLKB $85.75 92.5% $4,066 $4,409 $745 $402 $127 53.9% 17.0% 5.9x 34.8x

2U, Inc. TWOU $46.92 96.9% $2,202 $2,073 $223 $181 ($18) 81.0% (8.3%) 9.3x NA

NIC, Inc. EGOV $18.95 73.2% $1,252 $1,128 $323 $133 $84 41.1% 26.0% 3.5x 13.4x

Instructure, Inc. INST $29.50 98.0% $832 $793 $122 $87 ($49) 71.2% (40.5%) 6.5x NA

K12, Inc. LRN $17.92 84.6% $702 $533 $894 $333 $42 37.2% 4.7% 0.6x 12.7x

Average 91.1% $3,850 $3,804 $754 $332 $112 52.8% 5.8% 5.6x 25.3x

Median 93.6% $2,202 $2,073 $745 $333 $84 47.4% 17.0% 5.9x 25.4x

Enterprise Value /

LTM LTM Margins LTM



Cerner Corp. CERN $66.47 95.9% $22,681 $22,699 $4,827 $4,116 $1,351 85.3% 28.0% 4.7x 16.8x

Veeva Systems, Inc. VEEV $61.31 90.1% $9,130 $8,466 $582 $401 $141 68.8% 24.3% 14.5x* 59.9x*

athenahealth, Inc. ATHN $140.55 94.0% $5,657 $5,843 $1,112 $567 $112 51.0% 10.1% 5.3x 52.0x*

Medidata Solutions, Inc. MDSO $78.20 95.8% $4,506 $4,408 $486 $367 $72 75.6% 14.9% 9.1x 60.9x*

Allscripts Healthcare Solutions, Inc. MDRX $12.76 84.1% $2,351 $4,014 $1,618 $795 $153 49.2% 9.5% 2.5x 26.2x

Inovalon Holdings, Inc. INOV $13.15 65.6% $1,961 $1,687 $433 $278 $81 64.1% 18.8% 3.9x 20.8x

HMS Holdings Corp. HMSY $18.50 77.1% $1,614 $1,644 $484 $170 $91 35.2% 18.8% 3.4x 18.1x

Quality Systems, Inc. QSII $17.21 98.1% $1,067 $1,046 $510 $286 $59 56.2% 11.5% 2.1x 17.8x

Press Ganey Holdings, Inc. PGND $74.49 88.5% $322 $367 $130 $64 $16 49.7% 12.1% 2.8x 23.5x

Average 87.7% $5,477 $5,575 $1,131 $783 $231 59.5% 16.4% 4.2x 20.5x

Median 90.1% $2,351 $4,014 $510 $367 $91 56.2% 14.9% 3.6x 19.4x

Enterprise Value /

LTM LTM Margins LTM




18

Software-as-a-Service (SAAS)



Company Ticker 6/30/17 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAsalesforce.com, Inc. CRM $86.60 94.1% $61,058 $60,374 $8,863 $6,475 $449 73.1% 5.1% 6.8x 134.5x*Workday, Inc. WDAY $97.00 92.6% $19,452 $17,878 $1,702 $1,190 ($242) 69.9% (14.2%) 10.5x NAServiceNow, Inc. NOW $106.00 95.8% $17,617 $17,159 $1,501 $1,081 ($49) 72.0% (3.3%) 11.4x NAVeeva Systems, Inc. VEEV $61.31 90.1% $9,130 $8,466 $582 $401 $141 68.8% 24.3% 14.5x* 59.9xAtlassian Corporation Plc TEAM $35.18 92.8% $7,717 $7,213 $573 $470 ($9) 81.9% (1.6%) 12.6x* NAThe Ultimate Software Group, Inc. ULTI $210.06 93.1% $6,409 $6,334 $823 $505 $63 61.4% 7.6% 7.7x 101.0x*athenahealth, Inc. ATHN $140.55 94.0% $5,720 $5,929 $1,151 $595 $128 51.7% 11.1% 5.1x 46.4xGuidewire Software, Inc. GWRE $68.71 97.7% $5,170 $4,692 $474 $297 $25 62.7% 5.3% 9.9x 185.1x*Medidata Solutions, Inc. MDSO $78.20 95.8% $4,564 $4,468 $509 $387 $77 76.1% 15.1% 8.8x 58.2xPaycom Software, Inc. PAYC $68.41 92.9% $4,037 $3,975 $359 $306 $79 85.3% 22.1% 11.1x 50.1xProofpoint, Inc. PFPT $86.83 92.0% $3,681 $3,640 $410 $294 ($33) 71.7% (8.2%) 8.9x NARealPage, Inc. RP $35.95 94.0% $2,837 $2,898 $593 $342 $89 57.7% 15.0% 4.9x 32.7xLogMeIn, Inc. LOGM $104.50 84.3% $3,126 $2,859 $444 $371 $71 83.5% 16.0% 6.4x 40.2xRingCentral, Inc. RNG $36.55 93.7% $2,691 $2,542 $405 $307 ($12) 75.9% (3.0%) 6.3x NAHubSpot, Inc. HUBS $65.75 83.8% $2,339 $2,217 $294 $229 ($36) 77.9% (12.2%) 7.5x NACornerstone OnDemand, Inc. CSOD $38.06 87.7% $2,084 $2,051 $389 $265 ($54) 67.9% (13.9%) 5.3x NAEbix, Inc. EBIX $53.90 82.8% $1,753 $1,952 $306 $216 $111 70.4% 36.3% 6.4x 17.5xAlarm.Com Holdings, Inc. ALRM $37.63 97.7% $1,815 $1,826 $276 $171 $47 62.0% 17.0% 6.6x 38.8xZendesk, Inc. ZEN $31.86 64.3% $1,456 $1,624 $608 $338 $133 55.6% 21.8% 2.7x 12.2xCyberArk Software Ltd. CYBR $49.95 84.3% $1,795 $1,508 $229 $196 $42 85.6% 18.5% 6.6x 35.6xQ2 Holdings, Inc. QTWO $36.95 91.2% $1,480 $1,398 $161 $79 ($19) 48.8% (11.6%) 8.7x NAQualys, Inc. QLYS $40.80 92.0% $1,576 $1,331 $205 $160 $49 77.9% 23.9% 6.5x 27.2xCallidus Software Inc. CALD $24.20 97.4% $1,471 $1,287 $216 $134 ($8) 61.7% (3.5%) 5.9x NABenefitfocus, Inc. BNFT $36.35 80.8% $1,089 $1,140 $243 $120 ($13) 49.3% (5.4%) 4.7x NASPS Commerce, Inc. SPSC $63.76 85.2% $1,105 $951 $200 $133 $21 66.5% 10.5% 4.8x 45.2xBazaarvoice, Inc. BV $4.95 80.7% $411 $352 $201 $125 ($5) 62.0% (2.4%) 1.7x NA

Average 89.6% $6,599 $6,387 $835 $584 $40 68.4% 6.6% 6.9x 38.7x

Median 92.3% $2,764 $2,701 $407 $302 $34 69.4% 6.5% 6.5x 39.5x

Enterprise Value /

LTM LTM Margins LTM




19

Data & Analytics




Splunk, Inc. SPLK $56.89 82.2% $7,708 $6,704 $1,006 $797 ($288) 79.2% (28.7%) 6.7x* NA

Pegasystems, Inc. PEGA $58.35 90.0% $4,691 $4,543 $795 $544 $81 68.4% 10.2% 5.7x 55.8x*

Tableau Software, Inc. DATA $61.27 91.3% $4,660 $3,706 $855 $752 ($98) 87.9% (11.4%) 4.3x NA

Teradata Corp. NYSE:TDC $29.49 88.5% $3,885 $3,282 $2,268 $1,150 $337 50.7% 14.9% 1.4x 9.7x

Verint Systems, Inc. VRNT $40.70 91.1% $2,550 $2,968 $1,078 $683 $103 63.3% 9.5% 2.8x 28.8x

Inovalon Holdings, Inc. INOV $13.15 65.6% $1,961 $1,687 $433 $278 $81 64.1% 18.8% 3.9x 20.8x

MicroStrategy, Inc. MSTR $191.67 92.5% $2,213 $1,594 $514 $420 $115 81.8% 22.4% 3.1x 13.8x

PROS Holdings, Inc. PRO $27.39 89.8% $838 $845 $155 $91 ($56) 58.7% (36.0%) 5.4x NA

Average 86.4% $3,563 $3,166 $888 $589 $34 69.3% (0.0%) 3.8x 18.3x

Median 89.9% $3,218 $3,125 $825 $613 $81 66.3% 9.9% 3.9x 17.3x

Enterprise Value /

LTM LTM Margins LTM



IT Operations & Management


20

Data Storage

Infrastructure Services




VMware, Inc. VMW $87.43 89.2% $37,070 $30,585 $7,093 $6,040 $1,850 85.2% 26.1% 4.3x 16.5x

ServiceNow, Inc. NOW $106.00 95.8% $17,617 $17,159 $1,501 $1,081 ($49) 72.0% (3.3%) 11.4x* NA

Red Hat, Inc. RHT $95.75 95.0% $17,462 $16,574 $2,521 $2,150 $433 85.3% 17.2% 6.6x 38.3x

CA, Inc. NASDAQGS:CA $34.47 94.3% $14,305 $14,462 $4,036 $3,463 $1,258 85.8% 31.2% 3.6x 11.5x

Citrix Systems, Inc. CTXS $79.58 83.0% $12,549 $12,592 $3,422 $2,919 $1,011 85.3% 29.6% 3.7x 12.5x

Arista Networks, Inc. ANET $149.79 91.9% $11,166 $10,162 $1,222 $782 $287 64.0% 23.5% 8.3x 35.4x

Micro Focus International plc LSE:MCRO $29.49 84.9% $6,878 $8,491 $1,325 $1,185 $500 89.4% 37.7% 6.4x 17.0x

F5 Networks, Inc. FFIV $127.06 85.0% $8,416 $7,402 $2,056 $1,714 $626 83.3% 30.4% 3.6x 11.8x

Pegasystems, Inc. PEGA $58.35 90.0% $4,691 $4,543 $795 $544 $81 68.4% 10.2% 5.7x 55.8x

Software AG XTRA:SOW $43.75 88.4% $3,332 $3,232 $932 $706 $271 75.8% 29.1% 3.5x 11.9x

NetScout Systems, Inc. NTCT $34.40 89.4% $3,196 $3,054 $1,162 $817 $227 70.3% 19.6% 2.6x 13.4x

New Relic, Inc. NEWR $43.01 94.9% $2,224 $2,018 $263 $213 ($49) 81.0% (18.8%) 7.7x NA

Progress Software Corp. PRGS $30.89 95.1% $1,500 $1,366 $404 $353 $129 87.4% 31.8% 3.4x 10.6x

Radware Ltd. RDWR $17.54 95.7% $764 $594 $197 $161 $1 81.7% 0.3% 3.0x 949.6x*

Average 90.9% $10,084 $9,445 $1,924 $1,581 $470 79.6% 18.9% 4.8x 21.3x

Median 90.9% $7,647 $7,946 $1,274 $949 $279 82.5% 24.8% 3.7x 13.4x

Enterprise Value /

LTM LTM Margins LTM



Iron Mountain, Inc. IRM $34.36 82.8% $8,946 $15,062 $3,700 $2,051 $1,157 55.4% 31.3% 4.1x 13.0x

NetApp, Inc. NTAP $40.05 92.8% $11,254 $8,326 $5,519 $3,390 $904 61.4% 16.4% 1.5x 9.2x

Brocade Communications Systems, Inc. BRCD $12.61 99.3% $5,227 $5,479 $2,382 $1,522 $361 63.9% 15.2% 2.3x 15.2x

Box, Inc. BOX $18.24 87.2% $2,355 $2,251 $426 $309 ($117) 72.5% (27.4%) 5.3x NA

CommVault Systems, Inc. CVLT $56.45 95.7% $2,632 $2,182 $651 $565 $10 86.9% 1.6% 3.4x 213.7x*

Barracuda Networks, Inc. CUDA $23.06 86.4% $1,235 $1,039 $353 $269 $38 76.2% 10.8% 2.9x 27.3x

Carbonite, Inc. CARB $21.80 88.6% $597 $594 $216 $152 $11 70.6% 5.3% 2.8x 51.7x

Average 90.4% $4,607 $4,991 $1,892 $1,180 $338 69.6% 7.6% 3.2x 23.3x

Median 88.6% $2,632 $2,251 $651 $565 $38 70.6% 10.8% 2.9x 15.2x

Enterprise Value /

LTM LTM Margins LTM



IT Security


21

Infrastructure Services




Cisco Systems, Inc. CSCO $31.30 90.5% $158,339 $122,835 $48,510 $30,778 $15,048 63.4% 31.0% 2.5x 8.2x

Symantec Corp. SYMC $28.25 85.0% $17,459 $21,389 $4,019 $3,190 $727 79.4% 18.1% 5.3x 29.4x

Check Point Software Technologies Ltd. CHKP $109.08 94.1% $18,673 $17,205 $1,772 $1,568 $874 88.5% 49.3% 9.7x 19.7x

VeriSign, Inc. VRSN $92.96 97.9% $11,811 $11,888 $1,149 $951 $751 82.7% 65.4% 10.3x 15.8x

Palo Alto Networks, Inc. PANW $133.81 80.8% $12,056 $11,203 $1,653 $1,214 ($153) 73.4% (9.2%) 6.8x NA

Trend Micro, Inc. TSE:4704 $51.54 96.8% $7,108 $5,996 $1,232 $1,003 $420 81.4% 34.1% 4.9x 14.3x

Gemalto NV ENXTAM:GTO $59.95 81.8% $5,375 $5,451 $3,300 $1,268 $571 38.4% 17.3% 1.7x 9.5x

Fortinet, Inc. FTNT $37.44 90.6% $6,638 $5,440 $1,331 $981 $108 73.7% 8.1% 4.1x 50.5x

Proofpoint, Inc. PFPT $86.83 92.0% $3,681 $3,640 $410 $294 ($33) 71.7% (8.2%) 8.9x NA

FireEye, Inc. FEYE $15.21 82.6% $2,534 $2,410 $720 $455 ($219) 63.2% (30.5%) 3.3x NA

CyberArk Software, Ltd. CYBR $49.95 84.3% $1,795 $1,508 $229 $196 $42 85.6% 18.5% 6.6x 35.6x

Mimecast Ltd. MIME $26.78 90.8% $1,468 $1,358 $187 $136 $2 73.0% 1.2% 7.3x 631.8x*

Qualys, Inc. QLYS $40.80 92.0% $1,576 $1,331 $205 $160 $49 77.9% 23.9% 6.5x 27.2x

Cheetah Mobile, Inc. CMCM $10.78 78.2% $1,494 $1,326 $674 $450 $23 66.8% 3.4% 2.0x 57.2x

Imperva, Inc. IMPV $47.85 83.6% $1,561 $1,248 $277 $221 ($39) 79.8% (14.1%) 4.5x NAVaronis Systems, Inc. VRNS $37.20 98.2% $990 $869 $174 $157 ($14) 90.2% (7.8%) 5.0x NARapid7, Inc. RPD $16.83 87.2% $700 $621 $168 $125 ($38) 74.2% (22.4%) 3.7x NA

Average 88.6% $14,898 $12,689 $3,883 $2,538 $1,066 74.3% 10.5% 5.5x 26.7x

Median 90.5% $3,681 $3,640 $720 $455 $42 74.2% 8.1% 5.0x 23.5x

Enterprise Value /

LTM LTM Margins LTM



PCs, Servers & Components


22

Electronic Manufacturing Services

Technology Hardware




Apple, Inc. AAPL $144.02 91.9% $772,516 $804,130 $220,457 $84,686 $69,715 38.4% 31.6% 3.6x 11.5x

Samsung Electronics Co., Ltd. KOSE:A005930 $2,075.55 98.5% $309,256 $261,549 $181,252 $75,649 $46,603 41.7% 25.7% 1.4x 5.6x

International Business Machines Corp. IBM $153.83 84.2% $146,843 $179,055 $79,390 $37,381 $17,944 47.1% 22.6% 2.3x 10.0x

Hewlett-Packard Co. HPQ $17.48 89.3% $30,101 $30,701 $49,473 $9,094 $4,301 18.4% 8.7% 0.6x 7.1x

Xerox Corp. XRX $28.73 69.4% $7,286 $11,496 $10,610 $4,197 $1,490 39.6% 14.0% 1.1x 7.7x

NCR Corp. NCR $40.84 81.8% $5,175 $8,897 $6,577 $1,819 $872 27.7% 13.3% 1.4x 10.2x

Lenovo Group, Ltd. SEHK:992 $0.63 87.6% $6,960 $7,344 $43,035 $6,106 $963 14.2% 2.2% 0.2x 7.6x

Pitney Bowes, Inc. PBI $15.10 78.1% $2,830 $5,331 $3,399 $1,875 $747 55.2% 22.0% 1.6x 7.1x

Diebold, Inc. DBD $28.00 87.9% $2,006 $3,697 $3,910 $933 $246 23.9% 6.3% 0.9x 15.1x*

ScanSource, Inc. SCSC $40.30 89.7% $1,032 $1,083 $3,528 $366 $109 10.4% 3.1% 0.3x 9.9x

Average 85.8% $128,400 $131,328 $60,163 $22,211 $14,299 31.6% 15.0% 1.3x 8.5x

Median 87.7% $7,123 $10,196 $26,822 $5,151 $1,227 33.0% 13.7% 1.2x 7.7x

Enterprise Value /

LTM LTM Margins LTM



Flextronics International, Ltd. FLEX $16.31 91.8% $8,909 $10,064 $23,863 $1,653 $1,228 6.9% 5.1% 0.4x 8.2x

Jabil Circuit, Inc. JBL $29.19 92.1% $5,485 $6,940 $18,471 $1,443 $1,257 7.8% 6.8% 0.4x 5.5x

Sanmina-SCI Corp. SANM $38.10 92.4% $2,960 $2,924 $6,738 $519 $347 7.7% 5.1% 0.4x 8.4x

TTM Technologies, Inc. TTMI $17.36 92.1% $1,898 $2,645 $2,575 $445 $393 17.3% 15.3% 1.0x 6.7x

Celestica, Inc. TSX:CLS $13.56 88.4% $1,947 $1,616 $6,133 $438 $257 7.1% 4.2% 0.3x 6.3x

Plexus Corp. PLXS $52.57 89.5% $1,810 $1,564 $2,560 $255 $178 10.0% 7.0% 0.6x 8.8x

Benchmark Electronics, Inc. BHE $32.30 93.8% $1,608 $1,076 $2,328 $212 $135 9.1% 5.8% 0.5x 8.0x

Average 91.4% $3,517 $3,833 $8,953 $709 $542 9.4% 7.0% 0.5x 7.4x

Median 92.1% $1,947 $2,645 $6,133 $445 $347 7.8% 5.8% 0.4x 8.0x

Enterprise Value /

LTM LTM Margins LTM



Storage and Network Components


23

Communications Equipment

Technology Hardware




Western Digital Corp. WDC $88.60 93.3% $24,830 $32,241 $17,746 $5,268 $3,505 29.7% 19.8% 1.8x 9.2x

Pure Storage, Inc. PSTG $12.81 84.6% $2,547 $2,011 $771 $502 ($160) 65.1% (20.8%) 2.6x NA

Average 88.9% $13,689 $17,126 $9,258 $2,885 $1,672 47.4% (0.5%) 2.2x 9.2x

Median 88.9% $13,689 $17,126 $9,258 $2,885 $1,672 47.4% (0.5%) 2.2x 9.2x

Enterprise Value /

LTM LTM Margins LTM



Cisco Systems, Inc. CSCO $31.30 90.5% $158,339 $122,835 $48,510 $30,778 $15,048 63.4% 31.0% 2.5x 8.2x

QUALCOMM, Inc. QCOM $55.22 77.1% $82,305 $84,250 $23,243 $13,897 $7,881 59.8% 33.9% 3.6x 10.7x

Harris Corp. HRS $109.08 95.4% $13,651 $17,562 $7,366 $2,344 $1,579 31.8% 21.4% 2.4x 11.1x

Juniper Networks, Inc. JNPR $27.88 90.1% $10,803 $9,953 $5,113 $3,160 $1,141 61.8% 22.3% 1.9x 8.7x

Netgear, Inc. NTGR $43.10 70.9% $1,463 $1,102 $1,342 $409 $144 30.5% 10.7% 0.8x 7.7x

ADTRAN, Inc. ADTN $20.65 86.9% $1,008 $910 $665 $299 $52 45.0% 7.8% 1.4x 17.6x*

Average 85.1% $44,595 $39,435 $14,373 $8,481 $4,307 48.7% 21.2% 2.1x 9.3x

Median 88.5% $12,227 $13,758 $6,240 $2,752 $1,360 52.4% 21.9% 2.2x 8.7x

Enterprise Value /

LTM LTM Margins LTM



IT Consulting & Other Services


24

Data & Transaction Processing

IT Services




Accenture plc ACN $123.68 96.3% $81,904 $79,341 $34,189 $10,799 $5,804 31.6% 17.0% 2.3x 13.7x

Cognizant Technology Solutions Corp. CTSH $66.40 97.4% $40,421 $37,356 $13,831 $5,444 $2,714 39.4% 19.6% 2.7x 13.8x

Cap Gemini S.A. ENXTPA:CAP $103.23 93.0% $18,486 $20,157 $13,237 $3,543 $1,670 26.8% 12.6% 1.5x 12.1x

Wipro, Ltd. WIPRO $4.00 89.4% $19,474 $16,390 $8,495 $2,452 $1,684 28.9% 19.8% 1.9x 9.7x

CACI International, Inc. CACI $125.05 92.4% $3,126 $4,357 $4,331 $1,410 $377 32.5% 8.7% 1.0x 11.6x

Syntel, Inc. SYNT $16.96 35.0% $1,426 $1,798 $951 $364 $259 38.2% 27.2% 1.9x 6.9x

ManTech International Corp. MANT $41.38 90.9% $1,599 $1,507 $1,629 $236 $125 14.5% 7.7% 0.9x 12.0x

Unisys Corp. UIS $12.80 76.6% $642 $628 $2,818 $620 $187 22.0% 6.6% 0.2x 3.4x

Computer Task Group, Inc. CTG $5.59 88.4% $87 $77 $316 $58 $7 18.4% 2.3% 0.2x 10.8x

Average 84.4% $18,574 $17,957 $8,866 $2,769 $1,425 28.0% 13.5% 1.4x 10.4x

Median 90.9% $3,126 $4,357 $4,331 $1,410 $377 28.9% 12.6% 1.5x 11.6x

Enterprise Value /

LTM LTM Margins LTM


Company Ticker 6/30/17 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAPayPal Holdings, Inc. PYPL $53.67 97.3% $65,249 $56,321 $11,273 $5,271 $2,173 46.8% 19.3% 5.0x 25.9x

First Data Corp. FDC $18.20 95.7% $16,365 $37,472 $7,851 $4,688 $2,750 59.7% 35.0% 4.8x 13.6xFidelity National Information Services, Inc. FIS $85.40 97.8% $28,310 $37,222 $9,315 $3,053 $2,383 32.8% 25.6% 4.0x 15.6x

Fiserv, Inc. FISV $122.34 96.3% $27,144 $31,474 $5,568 $2,591 $1,742 46.5% 31.3% 5.7x 18.1xGlobal Payments, Inc. GPN $90.32 96.6% $14,452 $18,014 $4,070 $1,986 $1,096 48.8% 26.9% 4.4x 16.4x

Total System Services, Inc. TSS $58.25 96.1% $10,775 $13,587 $4,615 $1,245 $907 27.0% 19.6% 2.9x 15.0xBroadridge Financial Solutions, Inc. BR $75.56 96.9% $9,160 $10,157 $3,771 $986 $660 26.1% 17.5% 2.7x 15.4x

Jack Henry & Associates, Inc. JKHY $103.87 97.6% $8,160 $8,167 $1,414 $609 $505 43.1% 35.7% 5.8x 16.2xACI Worldwide, Inc. ACIW $22.37 93.3% $2,640 $3,243 $1,011 $576 $137 57.0% 13.6% 3.2x 23.6x

Average 96.4% $20,251 $23,962 $5,432 $2,334 $1,605 43.1% 24.9% 4.3x 17.8x

Median 96.6% $14,452 $18,014 $4,615 $1,986 $1,096 46.5% 19.5% 4.4x 16.2x

Enterprise Value /

LTM LTM Margins LTM




25

Internet


Online Content and Search



Akamai Technologies, Inc. AKAM $49.81 69.5% $8,748 $8,548 $2,382 $1,562 $707 65.6% 29.7% 3.6x 12.1x

Box, Inc. BOX $18.24 87.2% $2,355 $2,251 $426 $309 ($117) 72.5% (27.4%) 5.3x NA

Laboratorios Farmaceuticos ROVI, S.A. ROVI $19.48 91.0% $0 $4 $291 $166 $37 57.0% 12.8% NA 0.1x

Average 82.6% $3,701 $3,601 $1,033 $679 $209 65.0% 5.0% 4.4x 6.1x

Median 87.2% $2,355 $2,251 $426 $309 $37 65.6% 12.8% 4.4x 6.1x

Enterprise Value /

LTM LTM Margins LTM

Software & Services



Amazon.com, Inc. AMZN $968.00 95.2% $470,690 $470,758 $142,573 $50,734 $12,221 35.6% 8.6% 3.3x 38.5xpriceline.com, Inc. PCLN $1,870.52 97.1% $93,595 $96,510 $11,014 $10,624 $4,168 96.5% 37.8% 8.8x 23.2x

Netflix, Inc. NFLX $149.41 89.5% $65,818 $67,842 $9,510 $3,192 $645 33.6% 6.8% 7.1x 105.2x*

eBay, Inc. EBAY $34.92 95.7% $39,355 $41,567 $9,059 $7,014 $2,935 77.4% 32.4% 4.6x 14.2x

Expedia, Inc. EXPE $148.95 95.2% $22,996 $24,382 $9,058 $7,443 $1,102 82.2% 12.2% 2.7x 22.1x

GODaddy Inc. GDDY $42.42 95.9% $3,617 $4,125 $1,904 $1,224 $207 64.3% 10.9% 2.2x 19.9x

Cimpress N.V. CMPR $94.53 90.7% $2,963 $4,015 $2,050 $1,063 $173 51.9% 8.4% 2.0x 23.2xShutterfly, Inc. SFLY $47.50 87.0% $1,661 $1,854 $1,144 $571 $140 49.9% 12.2% 1.6x 13.2x

Etsy, Inc. ETSY $15.00 93.5% $1,717 $1,452 $380 $250 $28 65.8% 7.4% 3.8x 51.4x

Average 93.3% $78,046 $79,167 $20,744 $9,124 $3,453 61.9% 12.4% 4.0x 25.7x

Median 95.2% $22,996 $24,382 $9,058 $3,192 $645 64.3% 8.4% 3.3x 22.6x

Enterprise Value /

LTM LTM Margins LTM

e-Commerce



Google, Inc. GOOG $908.73 92.0% $629,637 $538,879 $99,275 $59,747 $32,253 60.2% 32.5% 5.4x 16.7xFacebook, Inc. FB $150.98 96.5% $443,089 $410,783 $30,288 $26,178 $16,355 86.4% 54.0% 13.6x* 25.1x

Yahoo!, Inc. AABA $54.48 94.9% $51,886 $46,323 $5,409 $2,450 $261 45.3% 4.8% 8.6x 177.6x*

Scripps Networks Interactive, Inc. SNI $68.31 81.9% $8,904 $12,117 $3,440 $2,342 $1,545 68.1% 44.9% 3.5x 7.8xTwitter, Inc. TWTR $17.87 70.8% $12,683 $10,458 $2,483 $1,578 $85 63.6% 3.4% 4.2x 122.8x*

IAC/InterActiveCorp. IAC $103.24 95.6% $8,165 $8,507 $3,082 $2,384 $432 77.4% 14.0% 2.8x 19.7x

WebMD Health Corp. WBMD $58.65 90.2% $3,141 $3,152 $701 $446 $182 63.7% 25.9% 4.5x 17.4xYelp, Inc. YELP $30.02 69.2% $2,347 $1,861 $752 $690 $33 91.7% 4.3% 2.5x 57.0x*

Average 86.4% $144,981 $129,010 $18,179 $11,977 $6,393 69.5% 23.0% 4.5x 17.3x

Median 91.1% $10,794 $11,287 $3,261 $2,363 $347 65.9% 20.0% 4.2x 17.4x

Enterprise Value /

LTM LTM Margins LTM



Technology Value Added Resellers


26

Technology Wholesalers

Resellers and Wholesalers




CDW Corp. CDW $62.53 94.3% $10,285 $13,758 $14,190 $2,355 $1,083 16.6% 7.6% 1.0x 12.7xPresidio, Inc. PSDO $14.31 87.4% $1,041 $1,952 $2,842 $581 $203 20.4% 7.1% 0.7x 9.6x

Insight Enterprises, Inc. NSIT $39.99 75.2% $1,445 $1,811 $5,794 $788 $210 13.6% 3.6% 0.3x 8.6xePlus, Inc. PLUS $74.10 91.1% $1,039 $1,100 $1,329 $287 $98 21.6% 7.4% 0.8x 11.2x

PC Connection, Inc. CNXN $27.06 88.8% $724 $659 $2,791 $376 $88 13.5% 3.2% 0.2x 7.5x

Average 87.3% $2,907 $3,856 $5,389 $877 $336 17.1% 5.8% 0.6x 9.9x

Median 88.8% $1,041 $1,811 $2,842 $581 $203 16.6% 7.1% 0.7x 9.6x

Enterprise Value /

LTM LTM Margins LTM


Company Ticker 6/30/17 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAArrow Electronics, Inc. ARW $78.42 97.6% $7,173 $9,624 $24,111 $3,155 $1,083 13.1% 4.5% 0.4x 8.9xSYNNEX Corp. SNX $119.96 91.3% $4,756 $5,555 $15,014 $1,419 $604 9.4% 4.0% 0.4x 9.2x

Avnet, Inc. AVT $38.88 75.5% $5,048 $5,414 $26,281 $3,194 $990 12.2% 3.8% 0.2x 5.5xTech Data Corp. TECD $101.00 95.9% $3,631 $5,055 $27,936 $1,460 $441 5.2% 1.6% 0.2x 11.5x

ScanSource, Inc. SCSC $40.30 89.7% $1,032 $1,083 $3,528 $366 $109 10.4% 3.1% 0.3x 9.9x

Average 90.0% $4,328 $5,346 $19,374 $1,919 $1,372 10.1% 2.9% 0.3x 9.0x

Median 91.3% $4,756 $5,414 $24,111 $1,460 $604 10.4% 3.0% 0.3x 9.2x

Enterprise Value /

LTM LTM Margins LTM


Member FINRA/SIPC

Recent Transactions

HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising Integrity | Expertise | Results

Hyde Park Capital Advisors, LLC 701 N. Franklin Street

Tampa, FL 33602 Tel: 813-383-0202

www.hydeparkcapital.com

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has been acquired byhas been acquired by has been recapitalized by

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has been acquired byhas received a growth

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John Hill Senior Managing Director [email protected] (813) 383-0205 John McDonald Senior Managing Director [email protected] (813) 383-0206 Keith Hodgdon Managing Director [email protected] (813) 383-0208 Greg Bosl Vice President [email protected] (813) 597-2649 Jami Gold Vice President [email protected] (813) 383-0203 Charlie Hendrick Vice President [email protected] (813) 383-0207 Jeffrey Hendricks Vice President [email protected] (678) 523-3073

Technology John McDonald M&A · PDF file05/08/17 Intel Corp. Technology Hardware Fixed Income...

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