Technology, Media & Telecom Industry Update May · PDF fileNew regulations requiring ......
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Technology, Media & Telecom
Industry Update
May 2012
Table of Contents Technology, Media & Telecom
What We've Been Reading…………………………………………………………………………………………1
Bellwethers……………………………………………………………………………………………2
TMT Public Market Trading Statistics………………………………………………………………………..…………………..3
Recent TMT M&A Activity…………………………………………………………………………………………….4
Recent U.S. TMT Initial Public Offerings………………………………………………………………………….………………...………..5
Public and M&A Market Overview by Sector
Data and Information Services………………………………………………………………..…………..6
Financial Technology…………………………………………………………………………8
Internet & Digital Media……………………………………………………..…………………..10
IT and Tech-Enabled Services………………………………………………………………..13
Software – Application…………………………………………………….…………………..15
Software – Infrastructure……………………………………………………..…………………..18
Software – SaaS……………………………………………………………………………………………………..20
Tech Hardware……………………………………………………………………..…………………..22
Telecom………………………………………………………………………………………………..25
Selected HW&Co. TMT Transactions…………………………………………………………………………………………..28
TMT Group Overview and Disclosures…………………………………………………………………………………………..29
Note: All market data in the following materials is as of April 30, 2012.
Mobile computing is being adopted by consumers at rates never seen before. Last year, smart phones and tablets
outsold personal computers for the first time. According to Forrester Research, in the next 4 years more people will
access the internet via mobile devices than via personal computers. Hardware distinctions are expected to fade as
cloud storage becomes accessible on all devices. These trends raise questions for technology companies evaluating
their strategies for the post personal computer era.
Read the full article here.
Questions for Mobile Computing
Technology Review 5/1/2012
An increased amount of M&A activity is expected in the remainder of 2012 as potential changes in the capital gains
tax policies are motivating firms to exit investments before the end of the year when the Bush Tax Cuts expire. At
the end of 2012, capital gains taxes will jump from 15% to 20%, with some speculating it could reach as high as
39%. Both investors and founders looking to maximize their capital gains are being more aggressive in seeking
2012 exits at the right prices.
Read the full article here.
How The Bush Tax Cuts Could Lead To A Crazy Year For M&A
Business Insider 4/30/2012
Recent network and data breaches at Emory Healthcare in Atlanta, the South Carolina Department of Health and
Human Services, and the Utah Department of Health underscore the need for increased security investment at
healthcare organizations. New regulations requiring healthcare organizations to disclose data breaches publicly
further support the need to implement proactive security policies. IDC Health Insights recommends investing in
software programs providing data mining and intrusion protection, auditing security practices, and limiting data
storage to data centers.
Read the full article here.
Health Care Data Breaches Highlight Need for Security Investment
eWeek 4/25/2012
What We’ve Been Reading
A recent Pew Research Center survey shows that approximately two-thirds of the survey respondents, comprised of
technologists and social scientists, believe that mobile payment and banking technologies such as the mobile wallet
will have substantially replaced both cash and credit cards by the year 2020. A wide variety of technology startups
are vying for a piece of this rapidly expanding market, while established players, such as PayPal who posted $118B
in total transactions last year, continue to expand their offerings and partnerships.
Read the full article here.
The Post-Cash, Post-Credit-Card Economy
New York Times 4/28/2012
The recent successful IPO of Splunk, Inc has sparked stronger investor interest in the big data space. For a sector
that has been growing in “relative obscurity” until recently, the growing realization of the broad applications of big
data technologies is spurring investor interest. While most pure-play big data companies are still a few years away,
the market should expect to see increased M&A activity in the near term.
Read the full article here.
Big-Data Investors Look for the Next Splunk
Reuters 4/20/2012
1
Public Market Trading Statistics Bellwethers
Stock
Performance
Last Twelve Months Last 30 Days
Comparable
Trading
Summary
2
80%
90%
100%
110%
120%
130%
140%A
pr-
11
Ma
y-1
1
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct-
11
No
v-1
1
Dec-1
1
Jan
-12
Feb
-12
Ma
r-1
2
Ap
r-1
2
Nasdaq Bellwethers
90%
95%
100%
105%
110%
115%
120%
03
/30
/12
04
/01
/12
04
/03
/12
04
/05
/12
04
/07
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04
/09
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/15
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/25
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/27
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/29
/12
Nasdaq Bellwethers
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Bellwethers
Apple Inc. 546,057.5$ 583.98$ 90.7% 33.2% 43.4% 3.1x 2.6x 8.2x 6.7x
Microsoft Corporation 268,953.7 32.02 97.2% 7.1% 10.3% 2.9x 2.8x 7.0x 6.5x
International Business Machines Corporation 238,863.5 207.08 98.3% 1.2% 2.5% 2.4x 2.3x 9.5x 9.3x
Google Inc. 197,185.0 604.85 90.2% 24.2% 38.3% 3.9x 3.3x 10.6x 8.0x
Samsung Electronics Co. Ltd. 160,467.9 1,229.87 98.7% NA NA 1.0x NA 5.8x NA
Oracle Corporation 146,268.1 29.40 80.5% 3.6% 22.0% 3.6x 3.5x 8.3x 7.0x
Intel Corporation 142,196.7 28.40 98.7% 5.7% 5.7% 2.5x 2.4x 5.8x 5.4x
QUALCOMM Inc. 109,422.2 63.83 92.7% 23.4% 28.0% 4.8x 4.2x 13.0x 9.9x
Cisco Systems, Inc. 108,553.6 20.16 94.6% 6.5% 23.8% 1.7x 1.6x 6.4x 5.2x
Amazon.com Inc. 104,477.0 231.90 94.0% 31.5% 80.9% 1.9x 1.6x 54.4x 31.9x
SAP AG 78,988.5 66.36 91.4% 11.4% 2.2% 4.0x 3.7x 11.1x 10.8x
EMC Corporation 59,232.8 28.21 94.0% 10.5% 28.7% 2.5x 2.3x 10.6x 8.6x
eBay Inc. 52,966.2 41.02 98.0% 20.3% 36.7% 3.7x 3.3x 13.3x 10.2x
Hewlett-Packard & Company 48,959.0 24.76 59.3% (1.5%) 3.5% 0.6x 0.6x 4.6x 4.4x
Total Comp Set Median 125,809.4$ 94.0% 10.5% 23.8% 2.7x 2.6x 8.9x 8.0x
0%
20%
40%
60%
80%
100%
120%
Data and
Information Services
Financial
Technology
Internet &
Digital Media
IT and
Tech-Enabled Services
Software –
Application
Software –
Infrastructure
Software –
SaaS
Technology
Hardware
Telecommunications
Comparable
Trading
Summary
Valuation
Summary
Current Valuation Versus Historical Five-Year Average
Five-Year Average
Note: Based on current TEV/LTM EBITDA versus five-year historical average.
Note: Public comparables exclude companies with market capitalization below $500 million.
TMT Public Market Trading Statistics by Vertical
3
LTM Revenue LTM EBITDA
Industry Segment 1 Month 12 Month Growth Margin LTM 2012P 2013P LTM 2012P 2013P
Bellwethers 0.8% 18.8% 11.6% 32.1% 2.7x 2.6x 2.3x 8.9x 8.0x 6.7x
Data and Information Services (0.3% ) 11.9% 10.4% 25.9% 2.9x 2.9x 2.7x 10.1x 9.1x 8.4x
Diversified Information Services (0.9%) 23.0% 7.7% 28.2% 3.0x 2.9x 2.7x 9.8x 8.9x 8.4x
Lender/Mortgage/Real Estate Data and Processing 2.8% 8.9% 7.2% 19.4% 2.5x 2.4x 2.3x 11.9x 8.0x 7.6x
Market Data and Research 0.1% (1.1%) 13.0% 16.5% 2.0x 2.2x 2.0x 11.1x 12.1x 10.5x
Financial Data and Media (2.3%) 2.3% 10.6% 37.5% 4.1x 4.6x 4.3x 12.5x 10.3x 9.4x
Financial Technology 0.2% 14.1% 13.3% 27.6% 3.3x 2.9x 2.7x 11.3x 9.9x 8.9x
Financial Software and Solutions (2.0%) 3.3% 13.4% 26.6% 3.7x 3.3x 3.0x 13.3x 11.0x 10.1x
Transaction and Payment Processing 1.7% 22.0% 12.0% 27.6% 2.7x 2.6x 2.5x 10.7x 9.3x 8.4x
Internet & Digital Media (2.6% ) (5.6% ) 27.5% 20.0% 2.9x 2.4x 2.1x 10.2x 8.5x 7.7x
Advertising & Marketing (9.1%) 0.2% 57.8% 29.6% 5.5x 4.6x 2.8x 18.5x 14.5x 10.3x
Content & Services (3.9%) (22.0%) 29.3% 13.9% 2.9x 2.4x 2.1x 9.8x 9.8x 8.8x
Content Delivery & Management (7.4%) (13.6%) 20.7% 23.0% 2.9x 1.9x 1.8x 9.7x 8.5x 7.3x
e-Commerce 4.8% 2.1% 30.3% 18.1% 3.7x 3.3x 2.8x 19.4x 11.5x 10.2x
Diversified Media (2.0%) 1.7% 4.9% 21.9% 1.8x 1.7x 1.7x 7.5x 7.2x 6.8x
IT and Tech-Enabled Services (1.4% ) 2.5% 10.2% 15.7% 1.4x 1.4x 1.2x 9.6x 8.6x 7.5x
IT Services (4.0%) (11.3%) 15.8% 11.2% 0.6x 1.3x 1.1x 6.5x 8.7x 7.7x
Government IT & BPO (1.5%) 5.1% 10.2% 9.9% 0.6x 0.5x 0.5x 9.3x 6.2x 5.9x
Onshore BPOs (0.2%) 3.5% 2.6% 15.7% 0.9x 1.0x 1.0x 8.6x 5.7x 4.6x
Offshore BPOs 0.1% 4.6% 15.8% 18.4% 2.3x 2.1x 1.8x 11.0x 10.6x 9.7x
Software – Application (3.2% ) 8.7% 18.9% 21.2% 3.6x 3.4x 3.1x 14.3x 10.6x 10.4x
Enterprise Software (1.9%) 11.5% 18.4% 23.2% 3.6x 3.5x 3.2x 11.0x 10.4x 9.5x
Product Lifecycle Management/Technical Design (3.5%) 9.1% 14.6% 21.9% 3.4x 2.3x 2.1x 12.9x 8.3x 7.9x
Customer Engagement/Call Center Management (3.2%) 4.5% 11.4% 17.9% 2.4x 2.1x 1.9x 14.7x 8.1x 7.6x
Human Capital Management (0.2%) 16.8% 21.0% 10.6% 7.6x 6.0x 4.9x 68.6x 29.1x 23.6x
Vertically Focused - Public Sector 0.7% 9.0% 13.6% 19.3% 3.7x 3.3x 2.9x 14.4x 13.0x 10.8x
Vertically Focused - Healthcare IT (9.5%) 3.2% 24.8% 27.3% 5.0x 4.2x 3.7x 15.9x 12.5x 10.7x
Software – Infrastructure (1.8% ) 6.7% 15.6% 22.4% 3.1x 3.5x 3.2x 11.8x 11.1x 10.1x
Enterprise IT Management (0.0%) (0.4%) 14.4% 22.6% 3.0x 2.7x 2.5x 10.3x 9.5x 11.4x
Security (2.3%) 18.2% 12.8% 27.5% 7.0x 6.5x 5.5x 12.4x 11.1x 10.1x
Enterprise Storage (4.4%) 6.2% 22.2% 17.6% 3.6x 3.3x 2.9x 16.3x 12.4x 11.0x
Software – SaaS (4.3% ) 5.9% 34.4% 15.3% 6.9x 5.6x 4.4x 23.5x 18.8x 15.2x
Technology Hardware (5.6% ) (5.7% ) 0.9% 17.4% 1.1x 1.2x 1.1x 7.4x 6.6x 5.5x
Semiconductor Devices (5.0%) (11.1%) 0.5% 21.9% 2.2x 2.1x 1.8x 9.8x 8.2x 6.9x
Semiconductor Equipment (6.8%) (4.2%) (6.5%) 22.1% 1.4x 1.4x 1.2x 6.6x 6.8x 5.6x
Electronic Manufacturing (8.3%) (9.8%) 3.3% 5.7% 0.3x 0.3x 0.3x 5.7x 5.0x 4.5x
PCs, Servers, and Computing Components (0.6%) 6.4% 3.3% 13.2% 0.8x 0.7x 0.8x 6.9x 6.0x 5.4x
Storage and Networking Components (13.8%) (12.4%) 8.6% 23.6% 1.0x 1.0x 0.9x 6.0x 4.8x 3.6x
Telecommunications (5.8% ) (9.5% ) 9.8% 22.7% 2.0x 1.9x 1.7x 8.4x 7.9x 6.2x
Network Optimization (7.8%) (20.2%) 18.2% 21.3% 3.7x 3.3x 2.8x 10.8x 9.2x 7.8x
Fiber Optics (12.9%) (31.9%) 5.5% 7.1% 1.3x 1.2x 1.1x 26.9x 10.8x 9.2x
Telecom/Networking Equipment (9.0%) (18.2%) 6.4% 16.6% 1.2x 1.2x 1.2x 7.4x 7.8x 5.8x
Carriers and Content Providers (5.3%) (14.3%) 11.1% 25.5% 1.8x 1.8x 1.7x 6.1x 5.7x 5.3x
Infrastructure Services 6.1% 31.0% 11.8% 62.7% 13.2x 11.1x 9.8x 21.1x 17.6x 15.1x
Managed Services 7.0% 49.2% 27.1% 40.0% 5.7x 5.1x 4.4x 13.7x 11.1x 9.5x
NASDAQ (0.8% ) 8.6%
Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple
Date Date Enterprise LTM Multiples Summary
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/30/12 Pending PLX Technology Inc. Fun World Media, Inc. 300.8$ 2.6 x NA
04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5 NA NA
04/26/12 Pending Gemcom Software International, Inc. Dassault Systemes SA 360.0 NA NA
04/26/12 Pending Torex Retail Holdings Limited MICROS Systems, Inc. 263.1 NA NA
04/25/12 Pending Archives.com Ancestry.com Inc. 100.0 NA NA
04/24/12 Pending Cray Inc., Interconnect Hardware Assets Intel Corporation 140.0 NA NA
04/23/12 Pending Thomson Reuters, Health Care Business Veritas Capital 1,250.0 NA NA
04/20/12 Pending MU Dynamics, Inc. Spirent Communications Plc. 40.0 NA NA
04/20/12 Pending Kawasaki Microelectronics, Inc. Megachips Corp. 104.2 NA NA
04/18/12 Pending Knology, Inc. WOW! Internet, Cable and Phone 1,488.9 2.9 x 8.3 x
04/17/12 Pending IBM, Point-of-Sale Business Toshiba Tec Corp. 842.3 NA NA
04/16/12 Pending SRS Labs Inc. DTS Inc. 114.4 3.5 x 65.2 x
04/15/12 Pending Openwave, Mediation and Messaging Marlin Equity Partners 55.0 NA NA
04/13/12 Pending Objet Ltd. Stratasys Inc. 606.4 5.0 x 30.2 x
04/10/12 Pending X-Rite, Incorporated Danaher Corp. 629.6 2.7 x 11.1 x
04/09/12 Pending Elo TouchSystems, Inc. The Gores Group LLC 380.0 0.9 x NA
04/09/12 Pending eResearchTechnology, Inc. Genstar Capital, LLC 376.7 2.0 x 9.2 x
04/09/12 Pending Instagram, Inc. Facebook, Inc. 1,000.0 NA NA
04/03/12 Pending DDI Corp. Viasystems Group, Inc. 267.8 1.0 x 7.9 x
04/02/12 Pending Wyse Technology, Inc. Dell Inc. 1,000.0 2.9 x NA
04/02/12 04/10/12 LogLogic, Inc. TIBCO Software Inc. 130.0 NA NA
03/27/12 03/30/12 MSDSonline Inc. ICG Group, Inc. 48.1 3.7 x NA
03/26/12 Pending Comverge, Inc. Bayside Capital, Inc.; H.I.G. Bayside 50.9 0.4 x NA
03/26/12 Pending Opnext, Inc. Oclaro, Inc. 133.5 0.4 x NA
03/24/12 Pending ClairMail, Inc. Monitise plc 174.4 10.0 x NA
03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6 6.0 x 15.8 x
03/22/12 Pending Convergys, Information Management NetCracker Technology Corporation 449.0 NA NA
03/22/12 03/22/12 Coolsand Holding Co., Ltd. RDA Microelectronics, Inc. 45.3 NA NA
03/21/12 03/21/12 OMGPOP, Inc. Zynga, Inc. 180.0 NA NA
03/21/12 04/05/12 BroadLight, Inc. Broadcom Corp. 205.0 NA NA
03/19/12 Pending Kiva Systems, Inc. Amazon.com Inc. 775.0 NA NA
03/18/12 Pending AboveNet, Inc. Zayo Group Inc. 2,149.8 4.5 x 11.2 x
03/16/12 03/16/12 Social Hour Inc. PlayPhone, Inc. 51.5 NA NA
03/16/12 Pending NEXX Systems, Inc. Tokyo Electron Ltd. 248.9 3.9 x 36.0 x
03/15/12 Pending NDS Group Ltd. Cisco Systems, Inc. 4,964.8 5.0 x 17.5 x
03/14/12 Pending Radvision Ltd. Avaya Inc. 163.7 2.1 x NA
03/13/12 Pending SonicWALL, Inc. Dell Inc. 1,200.0 4.6 x NA
03/08/12 Pending Quest Software Inc. Insight Venture Partners 1,947.3 2.3 x 12.7 x
03/08/12 Pending GFI Solutions Group, Inc. Private Equity Consortia 111.0 1.3 x NA
03/06/12 04/25/12 Transcend Services, Inc. Nuance Communications, Inc. 318.1 2.5 x 12.2 x
Median 284.3$ 2.8x 12.4x
Recent M&A
Statistics
Note: Includes announced domestic transactions over the last two months where enterprise value is more than $40 million.
Transaction Volume and Revenue Multiples Transaction Volume by Segment Summary
Statistics
Recent TMT M&A Activity
Note: Includes closed transactions over the last twelve months where enterprise value is publicly disclosed and more than $40 million. 4
2.6 x 2.8 x
3.2 x
1.4 x
3.0 x
3.8 x
4.8 x
2.0 x
1.5 x
0.0 x
1.0 x
2.0 x
3.0 x
4.0 x
5.0 x
6.0 x
0
10
20
30
40
50
60
70
80
90
Data and Information
Services
Financial Technology
Internet & Digital Media
IT and Tech-Enabled Services
Software –Application
Software –Infrastructure
Software –SaaS
Technology Hardware
Telecom
LT
M R
ev
en
ue M
ultip
leTra
nsa
cti
on
Volu
me
Data and Information
Services5%
Financial Technology
6%
Internet & Digital Media
17%
IT and Tech-Enabled Services
8%
Software –Application
17%
Software –Infrastructure
7%
Software –SaaS3%
Technology Hardware
22%
Telecom15%
0
10
20
30
40
50
60
2005 2006 2007 2008 2009 2010 2011 2012 YTD
($ in millions) IPO Details Financials at IPO (LTM) Trading Multiples
Gross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM
Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA
04/24/12 Envivio, Inc. 69.8$ 16.2% 2.8% 50.6$ 4.4% 68.8% 5.3x NM
04/19/12 Proofpoint, Inc. 82.3 18.9% 0.8% 81.8 NM 26.3% 4.7x NM
04/19/12 Infoblox Inc. 120.0 23.4% 27.5% 151.9 NM 48.7% 5.7x NM
04/18/12 Splunk, Inc. 229.5 7.4% 99.7% 121.0 NM 82.6% 26.6x NM
03/28/12 Millennial Media Inc. 132.6 9.8% 45.9% 103.7 NM 116.8% 13.8x NM
03/27/12 Vocera Communications, Inc. 93.6 14.5% 38.4% 79.5 1.5% 40.0% 5.8x NM
03/21/12 ExactTarget, Inc. 161.5 0.0% 42.2% 207.5 NM 54.5% 8.2x NM
03/21/12 Vantiv, Inc. 500.0 0.0% 32.5% 1,622.4 26.9% 39.6% 4.2x 15.7x
03/14/12 M/A-Com Technology Solutions Holdings 114.0 7.4% 4.4% 308.4 18.6% 18.5% 3.4x 18.3x
03/14/12 Demandware, Inc. 88.0 0.0% 70.3% 56.5 3.8% 54.1% 15.1x NM
03/01/12 Yelp, Inc. 107.3 0.7% 52.4% 83.3 NM 74.5% 15.5x NM
02/23/12 Bazaarvoice, Inc. 113.8 5.1% 65.1% 94.0 NM 143.2% 12.2x NM
02/17/12 Brightcove, Inc. 55.0 0.0% 70.5% 63.6 NM 45.4% 8.0x NM
02/09/12 Synacor, Inc. 34.1 20.0% 65.8% 91.1 7.4% 37.5% 2.6x 35.1x
02/01/12 Greenway Medical Technologies, Inc. 66.7 19.2% 54.0% 105.8 5.2% 63.6% 5.4x NM
02/01/12 AVG Technologies N.V. 128.0 50.0% (13.4%) 272.4 29.5% 25.4% 4.0x 13.7x
01/24/12 Guidewire Software, Inc. 115.1 0.0% 109.4% 190.2 13.6% 31.4% 7.4x 54.7x
12/15/11 Zynga, Inc. 1,000.0 0.0% 138.8% 1,024.6 18.6% 743.5% 5.2x 28.1x
12/12/11 Jive Software, Inc. 161.3 25.1% 98.4% 69.4 NM 131.5% 21.0x NM
11/18/11 Digital Domain Media Group, Inc. 41.8 0.0% 0.0% 106.4 NM 66.5% 4.2x NM
11/17/11 Intermolecular, Inc. 96.5 41.1% (33.3%) 52.9 8.1% 96.4% 7.0x 87.0x
11/16/11 Angie's List, Inc. 114.3 28.9% 7.3% 78.7 NM 72.6% 10.2x NM
11/15/11 InvenSense, Inc. 75.0 0.0% 114.4% 129.7 30.6% 63.0% 9.6x 31.2x
11/08/11 Imperva Inc. 90.0 5.0% 93.2% 72.0 NM 82.9% 11.4x NM
11/03/11 Groupon, Inc. 700.0 0.0% (46.5%) 1,290.5 NM 312.4% 5.3x NM
Median 113.8$ 7.4% 45.9% 103.7$ 10.9% 63.6% 7.0x 29.6x
Recent IPO
Statistics
Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last six months.
Number of Transactions by Tier Percentage of Transactions by Tier
Tier by Market Capitalization on IPO Pricing Date
$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +
Recent U.S. TMT Initial Public Offerings
Note: Includes major U.S. exchanges and transactions for companies located in the U.S.
5
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007 2008 2009 2010 2011 2012 YTD
Stock
Performance
Public Market Trading Statistics Data and Information Services
Comparable
Trading
Summary
Last Twelve Months Last 30 Days
6
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Diversified Information Services
Thomson Reuters Corporation 24,740.8$ 29.85$ 74.8% (5.7%) 5.5% 2.3x 2.4x 9.3x 8.8x
Experian plc 15,865.0 15.79 97.0% NA NA 3.9x NA 12.2x NA
Reed Elsevier plc 9,963.1 8.28 76.0% NA NA NA 0.8x NA 2.6x
Verisk Analytics, Inc. 8,111.3 48.95 98.6% 12.8% 15.6% 6.8x 6.0x 15.5x 13.4x
Alliance Data Systems Corporation 6,704.9 128.49 98.3% 11.7% 24.2% 3.9x 3.6x 13.2x 11.1x
IHS Inc. 6,644.0 101.07 99.0% 16.5% 84.4% 5.2x 4.7x 26.1x 14.5x
Equifax Inc. 5,516.0 45.82 97.0% 8.7% 10.6% 3.1x 3.0x 9.7x 9.0x
Wolters Kluwer NV 5,116.9 17.25 78.4% NA NA 1.8x NA 7.3x NA
Informa plc 4,045.5 6.73 89.9% NA NA 2.7x NA 9.8x NA
NeuStar, Inc. 2,432.2 36.35 94.0% 32.3% 50.1% 4.2x 3.5x 10.1x 7.3x
UBM plc 2,335.9 9.57 91.6% 3.3% 5.0% 2.1x 1.9x 9.4x 8.6x
Fair Isaac Corporation 1,545.8 42.90 95.3% 1.8% 3.2% 2.9x 2.9x 9.7x 9.7x
Acxiom Corporation 1,073.5 13.73 91.2% (4.8%) (4.1%) 1.0x 1.1x 5.1x 5.3x
Median 5,516.0$ 94.0% 8.7% 10.6% 3.0x 2.9x 9.8x 8.9x
Lender/Mortgage/Real Estate Data and Processing
Fidelity National Information Services, Inc. 9,946.4$ 33.67$ 99.0% 4.5% 8.4% 2.5x 2.4x 8.6x 8.0x
Lender Processing Services, Inc. 2,274.6 26.55 88.5% (3.2%) 15.9% 1.6x 1.7x 8.3x 7.1x
CoStar Group Inc. 1,881.0 72.89 99.3% 12.4% 17.2% 5.1x 4.7x 25.8x 22.6x
CoreLogic, Inc. 1,779.3 16.70 87.0% 6.1% 106.4% 1.7x 1.7x 11.9x 6.6x
LoopNet, Inc. 823.1 19.17 99.1% 11.5% 98.6% 7.9x 7.3x 43.8x 23.7x
Median 1,881.0$ 99.0% 6.1% 17.2% 2.5x 2.4x 11.9x 8.0x
Market Data and Research
Gartner Inc. 4,089.6$ 43.80$ 100.0% 10.8% 32.0% 2.8x 2.6x 17.4x 13.2x
Aegis Group plc 3,306.7 2.88 97.9% NA NA 1.9x NA 10.1x NA
Ipsos SA 1,469.3 32.44 68.7% NA NA 1.3x NA 9.4x NA
Forrester Research Inc. 803.6 35.45 88.6% 10.0% 16.7% 2.0x 1.9x 12.2x 10.9x
Median 2,388.0$ 93.2% 10.4% 24.4% 2.0x 2.2x 11.1x 12.1x
Financial Data and Media
Moody's Corporation 9,201.5$ 40.95$ 95.1% 9.5% 9.4% 4.1x 3.9x 9.7x 9.1x
FactSet Research Systems Inc. 4,710.0 104.86 93.3% 10.5% 12.2% 5.8x 5.4x 15.6x 14.3x
MSCI Inc. 4,444.3 36.59 93.8% 7.1% 9.1% 5.7x 5.3x 12.5x 11.4x
Dun & Bradstreet Corporation 3,721.9 77.78 89.9% (0.8%) 9.2% 2.6x 2.6x 8.7x 8.0x
Morningstar Inc. 2,890.5 57.72 90.2% NA NA 3.8x NA 13.2x NA
Median 4,444.3$ 93.3% 8.3% 9.3% 4.1x 4.6x 12.5x 10.3x
Total Data and Information Median 4,045.5$ 93.8% 9.1% 13.9% 2.9x 2.9x 10.1x 9.1x
80%
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130%A
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Nasdaq Data and Information Services
2.7x 2.7x2.2x
3.7x
2.5x2.7x 2.8x 2.8x
2.0x2.3x
3.2x
0.0x
1.0x
2.0x
3.0x
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
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Transaction Volume Median LTM Revenue Multiple
Recent M&A
Activity
Comparable Transactions Data and Information Services
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
7
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/23/12 Pending Thomson Reuters, Health Care Business Veritas Capital 1,250.0$ NA NA
04/02/12 04/10/12 LogLogic, Inc. TIBCO Software Inc. 130.0 NA NA
03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6 6.0 x 15.8 x
02/23/12 Pending GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. 717.0 3.2 x 11.6 x
01/31/12 03/16/12 JBIS Holdings, Inc. NTT Data Corporation 129.1 0.3 x 20.7 x
01/05/12 01/05/12 Miyowa Inc. Synchronoss Technologies, Inc. 59.0 4.6 x NA
12/23/11 12/28/11 De Novo Legal, LLC Epiq Systems Holdings, LLC 118.7 2.0 x 7.0 x
11/14/11 11/14/11 LesPAC inc. Mediagrif Interactive Technologies Inc. 71.3 5.7 x NA
11/10/11 03/19/12 Bitstream Inc. Monotype Imaging Holdings Inc. 42.5 1.5 x NA
Median 129.1$ 3.2x 13.7x
Stock
Performance
Public Market Trading Statistics Financial Technology
Comparable
Trading
Summary
Last Twelve Months Last 30 Days
8
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Financial Software and Solutions 1,719.7$ -$ 0.9$ 0.1$ 0.2$ 3.7$ 3.3$ 13.3$ 11.0$
Intuit Inc. 17,095.8$ 57.97$ 93.0% 8.0% 19.0% 4.2x 3.9x 12.3x 10.4x
Jack Henry & Associates Inc. 2,946.8 33.96 96.0% 6.2% 8.1% 3.0x 2.8x 9.4x 8.7x
Broadridge Financial Solutions Inc. 2,878.9 23.21 93.1% 6.4% 15.9% 1.4x 1.3x 8.5x 7.3x
SS&C Technologies Holdings, Inc. 1,853.7 23.77 97.2% 14.8% 20.8% 5.2x 4.5x 14.1x 11.7x
ACI Worldwide, Inc. 1,585.6 39.86 94.9% 50.9% 58.5% 3.1x 2.1x 14.5x 9.1x
Advent Software, Inc. 1,377.3 26.98 91.3% 12.0% 8.4% 4.0x 3.5x 12.6x 11.6x
Financial Engines, Inc. 1,050.8 22.84 78.8% 26.0% 91.3% 6.3x 5.0x 35.9x 18.8x
Bottomline Technologies Inc. 852.5 23.53 78.7% 14.7% 39.2% 3.4x 3.0x 20.7x 14.9x
Median 1,719.7$ 93.0% 13.3% 19.9% 3.7x 3.3x 13.3x 11.0x
Transaction and Payment Processing 7,277.5$ -$ 1.0$ 0.1$ 0.1$ 2.7$ 2.6$ 10.7$ 9.3$
Visa, Inc. 82,670.5$ 122.98$ 99.0% 9.7% 13.8% 8.3x 7.6x 13.1x 11.5x
Mastercard Inc. 57,202.8 452.27 97.8% 12.7% 14.7% 7.7x 6.9x 14.0x 12.2x
Automatic Data Processing, Inc. 27,285.8 55.62 97.4% 6.7% 7.5% 2.4x 2.3x 11.4x 10.8x
Paychex, Inc. 11,231.6 30.98 91.9% 6.5% 5.7% 4.7x 4.5x 11.1x 10.7x
Fidelity National Information Services, Inc. 9,946.4 33.67 99.0% 4.5% 8.3% 2.5x 2.4x 8.6x 8.0x
Fiserv, Inc. 9,650.0 70.29 99.1% 4.6% 12.8% 2.9x 2.8x 9.7x 8.6x
Vantiv, Inc. 4,905.1 22.52 99.0% (38.4%) 11.6% 3.6x 6.0x 13.6x 12.4x
Total System Services, Inc. 4,442.5 23.52 98.5% 3.3% 18.1% 2.3x 2.3x 9.2x 8.0x
Global Payments Inc. 3,647.5 46.43 86.1% 11.8% 9.4% 1.7x 1.6x 7.5x 7.2x
Wright Express Corporation 2,479.3 63.82 96.4% 8.8% 18.6% 4.9x 4.5x 10.9x 9.2x
Heartland Payment Systems, Inc. 1,186.1 30.47 98.3% (73.1%) 21.3% 0.6x 2.3x 10.6x 9.5x
Euronet Worldwide Inc. 1,095.5 21.63 96.1% 9.5% 16.6% 1.0x 1.0x 9.0x 7.7x
Median 7,277.5$ 98.1% 6.6% 13.3% 2.7x 2.6x 10.7x 9.3x
Total Financial Technology Median 3,297.2$ 96.2% 8.4% 15.3% 3.3x 2.9x 11.3x 9.9x
70%
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130%
140%
150%A
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Nasdaq Financial Technology
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
03/26/12 Pending ClairMail, Inc. Monitise plc 174.4$ 10.0 x NA
03/06/12 Pending GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. 717.0 3.2x 11.4x
02/28/12 Pending Thomson Reuters, Portia Business SS&C Technologies Holdings, Inc. 170.0 NA NA
02/07/12 Pending Temenos Group AG Misys plc 1,569.8 3.3x 35.1x
01/13/12 Pending Buckaroo B.V. Intrum Justitia AB 50.7 NA NA
12/19/11 01/31/12 Orc Group AB Cidron Intressenter AB 250.7 1.8x 9.2x
11/28/11 Pending Systems@Work Pte Ltd. Wirecard AG 78.4 NA NA
Median 174.4$ 3.3x 11.4x
Recent M&A
Activity
Comparable Transactions Financial Technology
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
9
4.7x
1.0x
1.8x
3.9x
3.2x3.4x
3.1x
1.7x2.0x
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Comparable
Trading
Summary
Public Market Trading Statistics Internet & Digital Media
Stock
Performance
Last Twelve Months Last 30 Days
10
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Advertising & Marketing 2,341.6$ -$ 0.8$ 0.3$ 0.4$ 5.5$ 4.6$ 18.5$ 14.5$
Google Inc. 197,196.3$ 604.85$ 90.2% 24.2% 38.3% 3.9x 3.3x 10.6x 8.0x
Baidu, Inc. 46,348.6 132.70 80.0% 54.5% 50.4% 17.1x 12.5x 29.5x 22.0x
Yahoo! Inc. 18,938.6 15.54 82.5% (10.4%) 20.4% 2.3x 2.6x 8.7x 7.0x
Yandex N.V. 7,722.0 23.72 56.5% 43.0% 43.1% 9.4x 7.4x 21.7x 16.5x
Groupon, Inc. 6,940.2 10.71 34.4% 44.6% NM 3.6x 2.5x NM 16.2x
Bankrate, Inc. 2,341.6 23.42 90.3% 27.5% 31.1% 5.5x 4.6x 18.5x 14.5x
ExactTarget, Inc. 1,741.5 27.01 90.4% 25.7% NA 8.2x 6.5x NM NA
ValueClick, Inc. 1,708.0 21.18 97.5% 27.0% 36.6% 2.9x 2.4x 10.2x 7.8x
Millennial Media Inc. 1,420.7 18.97 68.0% 190.8% NM 13.5x 4.7x NM 88.1x
Bazaarvoice, Inc. 1,126.3 19.81 93.9% 31.8% NM 12.1x 9.2x NM NM
Constant Contact, Inc. 735.0 24.17 75.1% 17.6% 114.4% 2.6x 2.3x 24.3x 12.6x
Median 2,341.6$ 82.5% 27.5% 38.3% 5.5x 4.6x 18.5x 14.5x
Content & Services 1,267.7$ -$ 0.6$ 0.2$ 0.3$ 2.9$ 2.4$ 9.8$ 9.8$
LinkedIn Corporation 11,203.0$ 108.45$ 88.4% 65.5% 168.5% 20.3x 12.3x NM 62.3x
VeriSign, Inc. 6,494.9 41.11 95.5% 13.7% 29.4% 7.3x 6.6x 13.6x 11.2x
Zynga, Inc. 6,140.0 8.34 52.4% 23.6% NM 3.8x 3.3x NM 10.8x
Netflix, Inc. 4,449.0 80.14 26.3% 13.4% (70.1%) 1.2x 1.1x 12.4x 31.6x
IAC/InterActiveCorporation 3,913.2 48.15 94.3% 22.8% 59.0% 1.5x 1.2x 10.8x 6.8x
AOL, Inc. 2,340.0 25.04 91.2% (4.0%) (13.8%) 0.9x 1.0x 5.8x 6.7x
Pandora Media, Inc. 1,430.8 8.60 33.1% 51.7% NM 4.9x 3.2x NM NM
Yelp, Inc. 1,368.7 22.86 71.5% 49.8% NM 16.2x 10.8x NM NM
WebMD Health Corp. 1,267.7 22.75 38.9% (9.3%) (17.2%) 1.7x 1.9x 7.2x 8.7x
Ancestry.com Inc. 1,137.4 26.70 58.3% 16.0% 17.0% 2.6x 2.3x 7.7x 6.9x
Monster Worldwide, Inc. 1,046.4 8.63 46.7% (4.7%) 20.1% 1.0x 1.0x 7.3x 6.0x
Zillow, Inc. 1,003.5 34.87 58.1% 55.4% 264.4% 13.8x 8.9x NM 40.8x
The Active Network, Inc. 977.2 16.80 71.2% 27.8% 141.0% 2.6x 2.0x 44.5x 18.5x
Angie's List, Inc. 795.9 13.95 70.4% 69.6% NM 7.0x 4.8x NM NM
comScore, Inc. 703.9 19.92 63.7% 19.6% 461.9% 2.9x 2.4x 64.7x 11.5x
Dice Holdings, Inc. 693.8 10.78 57.5% 10.4% 10.3% 3.5x 3.2x 8.5x 7.9x
Demand Media, Inc. 664.8 8.31 40.6% 7.4% 61.4% 1.8x 1.7x 9.8x 6.1x
Median 1,267.7$ 58.3% 19.6% 29.4% 2.9x 2.4x 9.8x 9.8x
Content Delivery & Management
Akamai Technologies, Inc. 5,805.3$ 32.59$ 79.0% 15.8% 15.1% 4.0x 3.6x 9.7x 8.5x
Level 3 Communications Inc. 4,986.0 23.06 57.6% 50.2% 70.7% 2.9x 1.9x 14.6x 8.5x
Rovi Corporation 3,072.5 28.64 47.1% 11.6% 52.5% 5.2x 4.6x 15.1x 9.9x
Mentor Graphics Corporation 1,587.6 14.45 91.7% 8.4% 36.7% 1.7x 1.5x 9.7x 7.1x
EarthLink Inc. 862.4 8.12 96.9% 2.7% (7.2%) 0.9x 0.9x 3.8x 4.2x
Median 3,072.5$ 79.0% 11.6% 36.7% 2.9x 1.9x 9.7x 8.5x
70%
80%
90%
100%
110%
120%
130%
140%A
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Nasdaq Internet & Digital Media
80%
85%
90%
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115%
120%
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Nasdaq Internet & Digital Media
Public Market Trading Statistics Internet & Digital Media
Note: Public comparables exclude companies with market capitalization below $500 million.
Comparable
Trading
Summary
(continued)
11
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
e-Commerce
Amazon.com Inc. 104,477.0$ 231.90$ 94.0% 31.5% 80.9% 1.9x 1.6x 54.4x 31.9x
eBay Inc. 52,966.2 41.02 98.0% 20.3% 36.7% 3.7x 3.3x 13.3x 10.2x
priceline.com Inc. 37,882.7 760.82 98.2% 27.6% 40.2% 8.2x 6.5x 24.7x 17.6x
Rakuten, Inc. 14,651.7 1,115.29 93.9% NA NA 3.4x NA 15.5x NA
Expedia Inc. 5,420.2 42.65 64.8% 9.6% 13.2% 1.3x 1.2x 6.8x 6.1x
Mercadolibre, Inc. 4,270.8 96.74 92.6% 33.9% 36.8% 13.7x 10.3x 38.4x 28.1x
Ctrip.com International Ltd. 3,116.4 21.67 43.1% 21.1% 2.7% 3.9x 3.2x 11.8x 11.5x
HomeAway, Inc. 2,134.5 26.05 56.9% 22.8% 100.2% 7.9x 6.8x 43.6x 23.5x
Live Nation Entertainment, Inc. 1,690.8 9.06 72.8% 2.6% 5.8% 0.5x 0.5x 6.2x 5.8x
Liquidity Services, Inc. 1,634.4 53.33 94.5% 32.0% 59.4% 4.5x 3.4x 26.7x 16.8x
Vistaprint N.V. 1,379.5 37.29 66.3% 23.6% 5.7% 1.5x 1.3x 12.5x 10.3x
Shutterfly, Inc. 1,086.3 31.16 46.7% 17.5% 100.1% 1.9x 1.6x 19.4x 9.7x
OpenTable, Inc. 1,009.0 44.72 37.7% 20.6% 60.0% 6.9x 5.7x 22.8x 14.3x
Demandware, Inc. 763.9 27.25 85.2% 24.2% NM 14.9x 12.0x 395.0x NM
Digital River Inc. 694.3 18.81 51.5% 1.9% 44.6% 0.6x 0.6x 3.8x 2.6x
Median 2,134.5$ 72.8% 22.0% 40.2% 3.7x 3.3x 19.4x 11.5x
Diversified Media
Comcast Corporation 81,843.8$ 30.35$ 99.7% 9.9% 6.6% 2.3x 2.1x 6.8x 6.4x
Walt Disney Company 77,268.7 43.11 96.9% 4.9% 11.4% 2.1x 2.0x 8.8x 7.9x
News Corporation 47,631.1 19.61 96.1% 1.5% 8.2% 1.5x 1.4x 7.5x 6.9x
Time Warner Inc. 36,192.9 37.48 95.5% 1.4% (0.2%) 1.8x 1.7x 7.3x 7.3x
Viacom, Inc. 25,057.6 46.39 88.1% (0.7%) 3.1% 2.1x 2.1x 7.8x 7.6x
CBS Corporation 21,666.4 33.38 96.6% 5.5% 11.4% 1.9x 1.8x 8.6x 7.7x
Liberty Interactive Corporation 10,818.9 18.83 95.1% 5.1% 8.2% 1.4x 1.4x 7.8x 7.2x
Scripps Networks Interactive, Inc. 7,712.0 50.22 95.9% 8.9% 5.6% 4.0x 3.7x 8.4x 8.0x
Gannett Co., Inc. 3,274.6 13.82 85.0% 0.6% 7.3% 1.0x 1.0x 5.0x 4.5x
Meredith Corporation 1,292.5 28.83 79.9% 7.6% 14.7% 1.2x 1.2x 6.9x 6.1x
The New York Times Company 933.2 6.31 64.9% (10.7%) (10.3%) 0.6x 0.7x 4.0x 4.4x
Median 21,666.4$ 95.5% 4.9% 7.3% 1.8x 1.7x 7.5x 7.2x
Total Internet & Digital Media Median 2,341.6$ 79.9% 18.6% 29.4% 2.9x 2.4x 10.2x 8.5x
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5$ NA NA
04/25/12 Pending Archives.com Ancestry.com Inc. 100.0 NA NA
04/09/12 Pending Instagram, Inc. Facebook, Inc. 1,000.0 NA NA
03/21/12 03/21/12 OMGPOP, Inc. Zynga, Inc. 180.0 NA NA
03/19/12 Pending Kiva Systems, Inc. Amazon.com Inc. 775.0 NA NA
03/16/12 03/16/12 Social Hour Inc. PlayPhone, Inc. 51.5 NA NA
02/16/12 02/16/12 Mobile Theory, Inc. Opera Software ASA 50.0 NA NA
01/23/12 02/29/12 Allrecipes.com, Inc. Meredith Corp. 175.0 NA NA
01/13/12 Pending Buckaroo B.V. Intrum Justitia AB 50.7 NA NA
01/05/12 01/05/12 Miyowa Inc. Synchronoss Technologies, Inc. 59.0 4.6x NA
12/22/11 03/06/12 Cotendo, Inc. Akamai Technologies, Inc. 268.0 NA NA
12/16/11 12/28/11 Webs, Inc. VistaPrint USA, Incorporated 117.9 NA NA
12/07/11 12/07/11 Wiggle Ltd. Bridgepoint Capital Group Ltd 313.7 2.3x 19.0x
12/05/11 12/09/11 Jobs2Web, Inc. SuccessFactors, Inc. 111.9 NA NA
11/30/11 01/13/12 Efficient Frontier, Inc. Adobe Systems Inc. 374.8 NA NA
11/28/11 Pending Systems@Work Pte Ltd. Wirecard AG 78.4 NA NA
11/22/11 11/22/11 VideoSurf, Inc. Microsoft Corporation 100.0 NA NA
11/21/11 11/21/11 Hunch Inc. eBay Inc. 80.0 NA NA
11/14/11 11/14/11 Babble Media, Inc. Disney Online 40.0 NA NA
11/14/11 11/14/11 LesPAC inc. Mediagrif Interactive Technologies Inc. 71.3 5.7x NA
11/14/11 12/16/11 Model Metrics, Inc. salesforce.com, inc 66.9 NA NA
11/12/11 01/03/12 Point International AB VeriFone Systems, Inc 1,049.7 5.5x NA
11/08/11 Pending Kobo, Inc. Rakuten, Inc. 315.0 NA NA
Median 111.9$ 5.0x 19.0x
Recent M&A
Activity
Comparable Transactions Internet & Digital Media
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
12
4.5x
3.0x
2.1x
4.0x
2.7x
3.2x3.5x
2.4x2.6x
3.1x
5.0x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
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Transaction Volume Median LTM Revenue Multiple
Comparable
Trading
Summary
Public Market Trading Statistics IT and Tech-Enabled Services
Stock
Performance
Last Twelve Months Last 30 Days
Note: Public comparables exclude companies with market capitalization below $500 million.
13
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
IT Services
Accenture plc 41,857.1$ 64.95$ 98.6% 7.7% 8.1% 1.3x 1.3x 8.4x 8.0x
Atos S.A. 6,254.8 64.38 99.5% NA NA 0.7x NA 6.9x NA
Cap Gemini S.A. 6,003.2 39.02 70.2% NA NA 0.4x NA 4.8x NA
Logica PLC 2,025.1 1.26 53.4% NA NA 0.4x NA 6.1x NA
Sapient Corporation 1,678.8 11.97 73.7% 14.2% 18.5% 1.4x 1.3x 11.1x 9.4x
Tieto Oyj 1,259.8 17.61 85.0% NA NA 0.5x NA 4.4x NA
EPAM Systems, Inc. 875.0 20.64 87.4% 24.5% 24.8% 2.6x 2.1x 13.6x 10.9x
Unisys Corporation 815.6 18.66 56.3% (0.6%) 21.7% 0.1x 0.1x 1.1x 1.0x
Median 1,851.9$ 79.4% 10.9% 20.1% 0.6x 1.3x 6.5x 8.7x
Government IT & BPO
SAIC, Inc. 4,155.5$ 12.16$ 68.9% 2.4% 111.2% 0.4x 0.4x 9.9x 4.7x
CACI International Inc. 1,619.3 61.13 91.9% 7.7% 2.3% 0.6x 0.5x 6.3x 6.2x
MAXIMUS, Inc. 1,493.0 44.25 94.6% 6.8% 5.2% 1.4x 1.3x 9.3x 8.9x
Tyler Technologies, Inc. 1,202.7 39.95 96.0% 17.2% 26.1% 3.9x 3.4x 21.7x 17.3x
ManTech International Corporation 1,158.9 31.42 67.9% 6.9% (1.7%) 0.4x 0.4x 4.4x 4.5x
Median 1,493.0$ 91.9% 6.9% 5.2% 0.6x 0.5x 9.3x 6.2x
Onshore BPOs
Alliance Data Systems Corporation 6,704.9$ 128.49$ 98.3% 11.7% 24.2% 3.9x 3.6x 13.2x 11.1x
CGI Group, Inc. 5,773.1 22.42 91.2% 1.8% 9.7% 1.6x 1.5x 8.6x 7.8x
Computer Sciences Corporation 4,351.4 28.06 54.6% (0.7%) 456.9% 0.4x 0.4x 19.1x 3.4x
DST Systems Inc. 2,401.5 55.98 94.2% (13.9%) 12.9% 0.9x 1.0x 5.4x 4.8x
Convergys Corporation 1,552.0 13.37 91.9% (3.8%) (16.3%) 0.5x 0.6x 4.8x 5.7x
Median 4,351.4$ 91.9% (0.7% ) 12.9% 0.9x 1.0x 8.6x 5.7x
Offshore BPOs
Tata Consultancy Services Ltd. 46,243.0$ 23.63$ 97.3% NA NA 4.7x NA 15.9x NA
Infosys Technologies Ltd. 26,705.7 46.74 74.5% 5.2% 3.6% 3.2x 3.1x 10.2x 10.2x
Cognizant Technology Solutions 22,323.3 73.33 87.8% 23.4% 22.0% 3.2x 2.6x 15.8x 12.9x
Wipro Ltd. 18,791.5 7.69 89.3% 17.8% 19.0% 2.4x 2.2x 12.5x 11.2x
HCL Technologies Ltd. 6,730.5 9.72 97.2% NA NA 1.7x NA 10.8x NA
Genpact Ltd. 3,713.5 16.68 91.9% 17.1% 13.3% 2.3x 2.0x 12.4x 11.0x
Syntel, Inc. 2,504.9 59.89 94.3% 15.8% 2.7% 3.3x 2.9x 11.0x 11.8x
Satyam Computer Services Limited 1,724.2 1.47 82.0% NA NA 1.5x NA 9.6x NA
Patni Computer Systems Ltd. 1,429.6 9.64 97.5% 10.3% 13.7% 1.5x 1.4x 9.3x 8.4x
Exlservice Holdings, Inc. 869.2 27.68 96.0% 25.6% 23.1% 2.2x 1.7x 12.0x 9.7x
WNS Holdings Ltd. 557.4 11.13 85.3% (20.7%) 11.8% 1.2x 1.4x 8.0x 7.6x
Median 3,713.5$ 91.9% 16.5% 13.5% 2.3x 2.1x 11.0x 10.6x
Total IT Services Median 2,401.5$ 91.2% 7.7% 13.5% 1.4x 1.4x 9.6x 8.6x
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Nasdaq IT and Tech-Enabled Services
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
03/23/12 03/30/12 MediConnect Global, Inc. Verisk Analytics, Inc. 348.6$ 6.0 x 15.8 x
03/08/12 Pending GFI Solutions Group, Inc. Private Equity Consortia 111.0 1.3 x NA
02/22/12 Pending Roundarch, Inc. Isobar North America, Inc. 485.0 NA NA
02/22/12 Pending Sygnity Spolka Akcyjna Asseco Poland SA 87.9 0.5 x 12.0 x
02/21/12 Pending ATS Corporation Salient Federal Solutions, Inc. 76.4 0.8 x 7.6 x
12/12/11 12/30/11 Ironworks Consulting, LLC ICF Consulting Group, Inc. 100.4 1.8 x 7.5 x
12/08/11 Pending Inmeta Crayon ASA Norvestor Equity 143.5 NA NA
11/24/11 Pending Nexbis Limited, Substantially All Assets Agathis Capital L.P. 76.8 20.5 x NA
11/14/11 12/16/11 Model Metrics, Inc. salesforce.com, inc 66.9 NA NA
11/12/11 Pending Point International AB VeriFone Systems, Inc 1,049.7 5.5 x NA
11/02/11 Pending mindSHIFT Technologies, Inc. Best Buy Co. Inc. 167.0 NA NA
11/01/11 Pending INX Inc. Presidio, Inc. 148.1 0.4 x 41.6 x
Median 127.2$ 1.6x 12.0x
1.6x
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Recent M&A
Activity
Comparable Transactions IT and Tech-Enabled Services
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
14
Public Market Trading Statistics Software – Application
Stock
Performance
Last Twelve Months Last 30 Days
Comparable
Trading
Summary
15
80%
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130%
140%A
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Nasdaq Application Software
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Enterprise Software 3,254.8$ -$ 0.9$ 0.1$ 0.3$ 3.6$ 3.5$ 11.0$ 10.4$
Oracle Corporation 146,268.1$ 29.40$ 80.5% 3.6% 22.0% 3.6x 3.5x 8.3x 7.0x
SAP AG 78,988.5 66.36 91.4% 11.4% 2.2% 4.0x 3.7x 11.1x 10.8x
salesforce.com, inc 21,335.0 155.73 94.5% 31.0% 385.8% 9.0x 6.9x NM 39.4x
Adobe Systems Inc. 16,645.0 33.55 93.2% 6.6% 30.4% 3.6x 3.4x 10.6x 8.0x
Sage Group plc 5,965.4 4.64 91.3% NA NA 2.9x NA 9.7x NA
Informatica Corporation 4,976.5 46.02 73.7% 14.8% 52.3% 5.4x 4.9x 23.4x 16.2x
Ariba Inc. 3,640.9 38.20 94.4% 14.6% 269.6% 6.8x 6.2x 78.6x 26.2x
Open Text Corporation 3,254.8 55.99 77.4% 10.2% 21.0% 3.0x 2.7x 10.9x 9.0x
NetSuite Inc. 3,106.0 44.38 85.7% 26.6% NM 11.7x 9.9x NM NM
MicroStrategy Inc. 1,515.1 139.78 78.3% 13.6% 153.0% 2.3x 2.1x 51.3x 20.3x
Jive Software, Inc. 1,486.3 23.81 84.6% 43.5% NM 17.1x 11.9x NM NM
JDA Software Group Inc. 1,228.9 28.88 82.5% 5.7% 18.3% 1.8x 1.7x 7.4x 6.2x
Manhattan Associates, Inc. 1,018.5 50.15 98.3% 12.7% 33.7% 2.6x 2.5x 12.1x 10.4x
Deltek, Inc 719.7 10.44 89.7% 8.2% 95.8% 2.4x 2.3x 16.6x 9.9x
Exact Holding NV 548.0 24.02 75.8% NA NA 1.7x NA 7.5x NA
Median 3,254.8$ 85.7% 12.7% 33.7% 3.6x 3.5x 11.0x 10.4x
Product Lifecycle Management/Engineering
Dassault Systemes SA 11,854.5$ 97.02$ 95.5% NA NA 4.2x NA 13.4x NA
Autodesk, Inc. 9,097.1 39.37 85.3% 10.4% 50.3% 3.4x 3.1x 15.9x 10.6x
Ansys, Inc. 6,241.0 67.07 99.1% 18.1% 32.5% 8.5x 7.2x 17.7x 13.4x
Synopsys Inc. 4,375.3 30.01 96.6% 4.8% 30.4% 2.1x 2.1x 9.5x 7.3x
Cadence Design Systems Inc. 3,205.1 11.67 92.6% 11.6% 69.8% 2.5x 2.3x 12.4x 8.2x
Parametric Technology Corporation 2,558.0 21.58 74.5% 6.2% 42.2% 2.0x 1.9x 11.6x 8.4x
Aspen Technology, Inc. 1,853.4 19.78 90.4% 18.1% NM 7.8x 6.6x NM NM
Aveva Group plc 1,831.8 27.04 92.5% NA NA 5.6x NA 19.2x NA
Mentor Graphics Corporation 1,587.6 14.45 91.7% 8.4% 36.7% 1.7x 1.5x 9.7x 7.1x
Median 3,205.1$ 92.5% 10.4% 39.5% 3.4x 2.3x 12.9x 8.3x
Customer Engagement/Call Center Management
Nuance Communications, Inc. 7,529.4$ 24.43$ 78.4% 29.9% 141.9% 5.9x 4.5x 28.1x 11.6x
Amdocs Limited 5,476.7 32.00 98.8% 5.1% 18.8% 1.4x 1.3x 7.6x 6.4x
NICE Systems Ltd. 2,464.8 37.90 95.8% 18.3% 88.6% 2.4x 2.0x 15.1x 8.0x
Comverse Technology Inc. 1,411.2 6.45 80.7% 4.8% 84.4% 1.0x 1.0x 11.6x 6.3x
Verint Systems Inc. 1,179.1 30.24 79.6% 11.4% 73.0% 2.4x 2.2x 14.2x 8.2x
LivePerson Inc. 866.2 15.88 90.4% 22.4% 49.4% 5.8x 4.7x 28.4x 19.0x
Median 1,938.0$ 85.5% 14.8% 78.7% 2.4x 2.1x 14.7x 8.1x
Comparable
Trading
Summary
(continued)
Note: Public comparables exclude companies with market capitalization below $500 million.
Public Market Trading Statistics Software – Application
16
Human Capital Management
Concur Technologies, Inc. 3,083.6$ 56.56$ 90.4% 25.7% 156.1% 7.6x 6.0x 66.6x 26.0x
The Ultimate Software Group, Inc. 2,035.6 77.16 99.6% 23.1% 129.5% 7.0x 6.0x 70.5x 32.2x
Cornerstone OnDemand, Inc. 1,033.4 20.79 88.5% 55.5% NM 13.0x 8.4x NM NM
Median 2,035.6$ 90.4% 25.7% 142.8% 7.6x 6.0x 68.6x 29.1x
Vertically Focused - Public Sector
Blackbaud Inc. 1,358.8$ 30.98$ 91.1% 15.0% 40.9% 3.5x 3.1x 18.3x 13.0x
Tyler Technologies, Inc. 1,202.7 39.95 96.0% 17.2% 26.1% 3.9x 3.4x 21.7x 17.3x
K12, Inc. 911.1 25.50 64.2% 19.8% 60.7% 1.3x 1.1x 13.8x 8.6x
Higher One Holdings, Inc. 892.5 15.77 73.3% 21.6% 33.8% 4.8x 3.9x 13.2x 9.9x
NIC Inc. 737.3 11.29 78.0% 13.2% 8.9% 3.7x 3.3x 14.4x 13.2x
Median 911.1$ 78.0% 17.2% 33.8% 3.7x 3.3x 14.4x 13.0x
Vertically Focused - Healthcare IT
Cerner Corporation 13,800.3$ 81.11$ 100.0% 19.3% 40.1% 5.5x 4.9x 20.2x 15.3x
athenahealth, Inc. 2,597.0 72.45 92.6% 32.1% 75.0% 7.0x 5.7x 46.6x 29.0x
Quality Systems Inc. 2,206.1 37.40 73.8% 17.9% 27.8% 5.0x 4.2x 15.9x 12.5x
Allscripts Healthcare Solutions, Inc. 2,112.3 11.10 50.6% 4.5% 34.3% 1.5x 1.5x 9.4x 6.7x
HMS Holdings Corp. 2,068.8 24.06 68.8% 39.4% 57.0% 5.9x 4.5x 19.7x 13.5x
MedAssets, Inc. 729.0 12.61 77.5% 4.8% 16.1% 2.7x 2.6x 9.3x 8.0x
Computer Programs & Systems Inc. 659.2 59.59 75.4% 12.5% 16.0% 3.6x 3.2x 14.3x 12.5x
Median 2,112.3$ 75.4% 17.9% 34.3% 5.0x 4.2x 15.9x 12.5x
Total Application Software Median 2,112.3$ 89.7% 14.6% 40.9% 3.6x 3.4x 14.3x 10.6x
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/26/12 Pending Gemcom Software International, Inc. Dassault Systemes SA 360.0$ 6.6 x NA
04/26/12 Pending Torex Retail Holdings Limited MICROS Systems, Inc. 263.1 NA NA
04/09/12 Pending eResearchTechnology, Inc. Genstar Capital, LLC 376.7 2.0x 9.2x
04/02/12 04/10/12 LogLogic, Inc. TIBCO Software Inc. 130.0 NA NA
03/24/12 Pending ClairMail, Inc. Monitise plc 174.4 NA NA
03/22/12 Pending Convergys, Information Management NetCracker Technology Corporation 449.0 NA NA
03/15/12 Pending NDS Group Ltd. Scientific-Atlanta, LLC 4,964.8 5.0x 17.5x
03/08/12 Pending Quest Software Inc. Insight Venture Partners 1,947.3 2.3x 12.7x
03/06/12 04/25/12 Transcend Services, Inc. Nuance Communications, Inc. 318.1 2.5x 12.2x
02/29/12 02/29/12 BDGB Enterprise Software (LUX), S.C.A. Lexmark International Technology 148.0 NA NA
02/28/12 Pending eScreen, Inc. Alere Inc. 340.0 2.8x NA
02/24/12 02/24/12 iContact Corporation Vocus Inc. 178.7 NA NA
02/08/12 04/05/12 Taleo Corporation Oracle Corporation 1,805.5 5.7x 60.9x
02/07/12 Pending Temenos Group AG Misys plc 1,565.8 3.7x 7.6x
02/07/12 Pending IBS AG Siemens Beteiligungen Inland GmbH 43.9 1.3x 11.2x
02/07/12 02/21/12 CaseCentral, Inc. Guidance Software, Inc. 54.0 NA NA
02/01/12 04/11/12 CDC Software Corporation Vista Equity Partners; Vista Equity Fund 4 264.8 1.2x 12.1x
01/27/12 02/14/12 Numara Software, Inc. BMC Software Inc. 300.0 NA NA
01/23/12 01/23/12 Autologic Diagnostics Ltd. ISIS Equity Partners LLP; Foresight Group 71.7 3.2x NA
01/16/12 Pending Convio, Inc. Blackbaud Inc. 274.4 3.4x 37.8x
01/12/12 01/31/12 Compliance 360, Inc. SAI Global Limited 42.3 NA NA
01/09/12 01/13/12 LiveOffice LLC Symantec Corporation 115.0 NA NA
01/07/12 01/31/12 2nd Story Software, Inc. InfoSpace, Inc. 287.5 3.7x NA
12/21/11 Pending Ventelo Holding AB EQT Partners AB; EQT VI Fund 303.1 0.6x NA
12/20/11 12/20/11 InfoVista SA Thoma Bravo, LLC 63.2 1.1x NA
12/19/11 Pending Orc Group AB Cidron Intressenter AB 250.7 1.8x NA
12/09/11 Pending Workplace Systems International plc LDC Ltd. 60.2 3.9x NA
12/07/11 Pending DemandTec, Inc. International Business Machines Corp. 426.9 4.8x NA
12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0x NA
11/30/11 Pending Magma Design Automation Inc. Synopsys Inc. 498.6 3.4x NA
11/07/11 12/16/11 HealthDataInsights, Inc. HMS Holdings Corp. 400.0 NA NA
Median 287.5$ 3.3x 12.2x
Recent M&A
Activity
Comparable Transactions Software – Application
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
17
2.1x2.2x
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Comparable
Trading
Summary
Public Market Trading Statistics Software – Infrastructure
Stock
Performance
Last Twelve Months Last 30 Days
Note: Public comparables exclude companies with market capitalization below $500 million.
18
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Enterprise IT Management
Microsoft Corporation 268,953.7$ 32.02$ 97.2% 7.1% 10.3% 2.9x 2.8x 7.0x 6.5x
Hewlett-Packard Company 48,959.0 24.76 59.3% (1.5%) 3.5% 0.6x 0.6x 4.6x 4.4x
VMware, Inc. 47,700.5 111.72 94.0% 22.1% 71.2% 10.8x 9.3x 41.5x 25.9x
Citrix Systems, Inc. 15,894.4 85.61 96.7% 15.6% 39.6% 6.2x 5.6x 24.0x 17.6x
CA Technologies 12,830.7 26.42 94.4% 3.9% 5.6% 2.5x 2.4x 6.7x 6.4x
Red Hat, Inc. 11,496.3 59.61 95.0% 19.0% 50.4% 9.0x 7.9x 40.6x 28.1x
BMC Software Inc. 6,776.0 41.26 73.0% 2.9% 29.6% 2.6x 2.6x 7.8x 6.0x
TIBCO Software Inc. 5,357.6 32.90 94.9% 14.9% 45.8% 5.4x 4.9x 23.7x 16.6x
Splunk, Inc. 3,141.4 33.95 90.9% 34.4% NA 25.7x 19.1x NM NA
Compuware Corporation 1,905.9 8.72 76.1% 5.8% 23.2% 1.9x 1.8x 10.3x 8.4x
Progress Software Corporation 1,454.3 23.14 78.0% (4.6%) (13.9%) 2.1x 2.2x 9.4x 9.5x
Pegasystems Inc. 1,406.7 37.19 78.2% 19.6% 109.0% 3.1x 2.6x 47.8x 22.9x
Median 9,136.1$ 92.5% 11.0% 29.6% 3.0x 2.7x 10.3x 9.5x
Security
Check Point Software Technologies Ltd. 12,066.1$ 58.13$ 89.4% 10.6% 16.2% 7.0x 6.5x 12.4x 11.1x
Symantec Corporation 12,061.4 16.54 80.7% 1.5% 22.5% 1.8x 1.7x 6.4x 5.2x
VeriSign, Inc. 6,494.9 41.11 95.5% 13.7% 29.4% 7.3x 6.6x 13.6x 11.2x
Fortinet Inc. 4,084.2 26.12 90.6% 21.4% 42.2% 7.6x 6.6x 35.6x 25.5x
Trend Micro Inc. 4,012.6 30.50 84.3% NA NA 1.8x NA 5.2x NA
Sourcefire, Inc. 1,475.6 50.99 97.0% 22.3% 208.8% 8.0x 6.5x 105.9x 34.3x
Websense, Inc. 779.7 20.74 74.5% 1.1% 24.1% 2.1x 2.1x 10.8x 8.9x
Median 4,084.2$ 89.4% 12.2% 26.8% 7.0x 6.5x 12.4x 11.1x
Enterprise Storage
EMC Corporation 59,232.8$ 28.21$ 94.0% 10.5% 28.7% 2.5x 2.3x 10.6x 8.6x
NetApp, Inc. 14,093.1 38.83 68.7% 13.3% 47.3% 1.7x 1.5x 11.1x 7.5x
Teradata Corporation 11,741.2 69.78 98.3% 12.2% 33.6% 4.8x 4.2x 21.6x 16.2x
Brocade Communications Systems, Inc. 2,541.3 5.54 75.9% 3.9% 23.7% 1.3x 1.2x 6.6x 5.3x
Fusion-io, Inc. 2,311.4 25.65 61.5% 35.5% 43.2% 6.2x 5.0x 142.8x 48.8x
CommVault Systems, Inc. 2,301.6 52.07 94.0% 15.7% 66.5% 5.3x 4.6x 39.2x 23.5x
Median 7,141.2$ 84.9% 12.7% 38.4% 3.6x 3.3x 16.3x 12.4x
Total Infrastructure Software Median 6,494.9$ 90.6% 12.7% 29.6% 3.1x 3.5x 11.8x 11.1x
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Nasdaq Infrastructure Software
85%
90%
95%
100%
105%
110%
115%
120%
03
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04
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04
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04
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04
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04
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Nasdaq Infrastructure Software
2.4x
1.1x
5.8x
4.5x
4.3x
3.6x
2.5x 2.4x
4.1x
3.3x
2.9x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
0
10
20
30
40
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
LT
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Transaction Volume Median LTM Revenue Multiple
Recent M&A
Activity
Comparable Transactions Software – Infrastructure
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
19
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/20/12 Pending MU Dynamics, Inc. Spirent Communications Plc. 40.0$ NA NA
04/02/12 Pending Wyse Technology, Inc. Dell Inc. 1,000.0 2.9 x NA
04/02/12 04/10/12 LogLogic, Inc. TIBCO Software Inc. 130.0 NA NA
03/13/12 Pending SonicWALL, Inc. Dell Inc. 1,200.0 4.6 x NA
03/08/12 Pending Quest Software Inc. Insight Venture Partners 1,947.3 2.3 x 12.7 x
01/25/12 02/22/12 NovaTech LLC The Weir Group PLC 180.0 NA NA
11/14/11 11/14/11 Mobile Interactive Group Limited Velti Plc 59.0 3.0 x NA
Median 180.0$ 2.9 x 12.7 x
Public Market Trading Statistics Software – SaaS
Comparable
Trading
Summary
Stock
Performance
Last Twelve Months Last 30 Days
Note: Public comparables exclude companies with market capitalization below $500 million.
20
( $ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
SaaS
salesforce.com, inc 21,335.0$ 155.73$ 94.5% 31.0% 385.8% 9.0x 6.9x NM 39.4x
NetSuite Inc. 3,106.0 44.38 85.7% 26.9% NM 11.7x 9.8x NM NM
Concur Technologies, Inc. 3,083.6 56.56 90.4% 25.7% 156.1% 7.6x 6.0x 66.6x 26.0x
athenahealth, Inc. 2,597.0 72.45 92.6% 32.1% 75.4% 7.0x 5.7x 46.6x 28.9x
Qlik Technologies, Inc. 2,448.8 28.81 80.9% 28.9% 167.1% 6.7x 5.4x NM 36.6x
The Ultimate Software Group, Inc. 2,035.6 77.16 99.2% 23.1% 129.5% 7.0x 6.0x 70.5x 32.2x
ExactTarget, Inc. 1,741.5 27.01 90.4% NA NA 8.2x NA NM NA
Jive Software, Inc. 1,486.3 23.81 84.6% 43.5% NM 17.1x 11.9x NM NM
Blackbaud Inc. 1,358.8 30.98 91.1% 15.0% 40.9% 3.5x 3.1x 18.3x 13.0x
DealerTrack Holdings, Inc. 1,251.2 29.83 93.5% 4.8% 74.0% 3.1x 2.9x 20.0x 11.5x
Cornerstone OnDemand, Inc. 1,032.9 20.78 88.4% 55.5% NM 13.0x 8.4x NM NM
Financial Engines, Inc. 1,050.8 22.84 78.8% 26.0% 91.3% 6.3x 5.0x 35.9x 18.8x
OpenTable, Inc. 1,009.0 44.72 38.9% 20.6% 60.0% 6.9x 5.7x 22.8x 14.3x
LivePerson Inc. 873.8 15.88 90.4% 22.4% 49.4% 5.9x 4.8x 28.7x 19.2x
Websense, Inc. 779.7 20.74 74.5% 1.1% 24.1% 2.1x 2.1x 10.8x 8.9x
Demandware, Inc. 763.9 27.25 85.2% 24.2% NM 14.9x 12.0x NM NM
Ebix Inc. 745.3 20.45 76.0% 11.2% NA 4.5x 4.1x 10.4x NA
Constant Contact, Inc. 734.7 24.17 72.6% 17.5% 110.2% 2.6x 2.3x 24.3x 12.8x
MedAssets, Inc. 729.0 12.61 77.5% 4.8% 16.1% 2.7x 2.6x 9.3x 8.0x
Total SaaS Median 1,251.2$ 85.7% 23.7% 75.4% 6.9x 5.6x 23.5x 18.8x
65%
75%
85%
95%
105%
115%
125%A
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Nasdaq SaaS
85%
90%
95%
100%
105%
110%
115%
120%
03
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Nasdaq SaaS
Recent M&A
Activity
Comparable Transactions Software – SaaS
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.
21
2.6x
3.8x
2.3x
3.1x
2.5x
3.8x
4.4x
2.5x
3.7x
4.2x
5.7x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
0
10
20
30
40
50
60
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
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Transaction Volume Median LTM Revenue Multiple
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/27/12 Pending Demandforce, Inc. Intuit Inc. 423.5$ NA NA
03/27/12 03/30/12 MSDSonline Inc. ICG Group, Inc. 48.1 NA NA
02/08/12 04/05/12 Taleo Corporation Oracle Corporation 1,805.5 5.7 x 60.9 x
02/07/12 02/21/12 CaseCentral, Inc. Guidance Software, Inc. 54.0 NA NA
01/27/12 02/03/12 Numara Software, Inc. BMC Software Inc. 300.0 NA NA
01/12/12 01/31/12 Compliance 360, Inc. SAI Global Limited 42.3 NA NA
01/09/12 01/13/12 LiveOffice LLC Symantec Corporation 115.0 NA NA
12/09/11 Pending Workplace Systems International plc LDC Ltd. 60.2 4.0 x NA
12/08/11 Pending DemandTec, Inc. International Business Machines Corp. 426.9 4.8 x NA
12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0 x NA
11/14/11 Pending Model Metrics, Inc. Salesforce.com 57.6 NA NA
Median 115.0$ 5.3x 60.9x
Comparable
Trading
Summary
Public Market Trading Statistics Tech Hardware
Stock
Performance
Last Twelve Months Last 30 Days
22
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Semiconductor Devices
Intel Corporation 142,196.7$ 28.40$ 98.7% 5.7% 5.7% 2.5x 2.4x 5.8x 5.4x
Texas Instruments Inc. 36,478.1 31.94 88.8% (0.3%) (12.9%) 2.9x 2.8x 9.0x 9.8x
Broadcom Corporation 19,947.0 36.60 89.3% 10.9% 21.0% 2.2x 2.0x 14.5x 12.0x
Analog Devices Inc. 11,609.5 38.98 90.1% (3.0%) (5.2%) 3.0x 3.1x 7.9x 8.3x
Marvell Technology Group Ltd. 8,795.9 15.01 89.0% 4.3% 7.3% 1.9x 1.8x 8.8x 8.2x
Maxim Integrated Products Inc. 8,643.4 29.58 98.8% (0.2%) (1.1%) 3.3x 3.3x 10.2x 9.7x
Micron Technology Inc. 6,521.6 6.59 55.7% 0.4% (2.6%) 0.9x 0.9x 3.7x 3.4x
Advanced Micro Devices Inc. 5,147.5 7.36 80.3% 4.1% 5.7% 0.8x 0.8x 6.6x 6.6x
LSI Corporation 4,570.6 8.04 87.4% 28.5% 114.8% 1.8x 1.5x 12.1x 6.3x
Cree Inc. 3,573.0 30.90 68.9% 22.5% 8.9% 2.6x 2.3x 15.1x 13.2x
Freescale Semiconductor Holdings I, Ltd. 3,061.4 12.41 59.2% (9.2%) (17.7%) 2.1x 2.1x 9.1x 10.0x
Cypress Semiconductor Corporation 2,352.7 15.51 64.8% (13.5%) 11.4% 2.4x 2.7x 15.2x 11.3x
Microsemi Corporation 1,882.3 21.52 90.4% 16.9% 50.9% 2.7x 2.5x 11.9x 7.9x
Fairchild Semiconductor International Inc. 1,799.3 14.17 67.4% (4.6%) (17.8%) 1.1x 1.1x 6.4x 6.4x
Semtech Corporation 1,783.0 27.26 89.5% 17.0% 19.6% 3.0x 2.6x 12.8x 10.7x
PMC-Sierra Inc. 1,646.4 7.07 86.4% (6.0%) 11.5% 1.9x 2.0x 9.8x 7.7x
MEMC Electronic Materials Inc. 828.6 3.59 29.9% (2.3%) 61.7% 0.8x 0.8x 10.7x 6.6x
Median 4,570.6$ 87.4% 0.4% 7.3% 2.2x 2.1x 9.8x 8.2x
Semiconductor Equipment
Applied Materials Inc. 15,480.6$ 11.99$ 75.1% (2.3%) (9.0%) 1.4x 1.5x 6.4x 7.0x
KLA-Tencor Corporation 8,723.6 52.14 94.1% 4.8% 5.8% 2.2x 2.1x 6.2x 5.8x
Lam Research Corporation 4,990.8 41.67 79.8% 0.4% (16.4%) 1.2x 1.2x 7.4x 6.8x
Novellus Systems, Inc. 3,313.6 46.80 92.6% (2.3%) (10.4%) 2.4x 2.3x 11.0x 10.2x
Teradyne Inc. 3,210.6 17.21 95.6% 28.6% 41.5% 1.8x 1.4x 7.6x 5.0x
MKS Instruments Inc. 1,453.0 27.65 79.0% (6.0%) (34.2%) 1.1x 1.1x 5.0x 6.7x
Amkor Technology, Inc. 870.1 5.17 73.9% 5.7% 14.5% 0.7x 0.6x 3.4x 2.9x
Tessera Technologies Inc. 811.0 15.64 75.3% (10.5%) (57.4%) 1.4x 1.4x 4.7x 7.6x
Cabot Microelectronics Corporation 775.9 34.38 64.7% (0.3%) (2.0%) 1.9x 1.8x 9.4x 8.5x
Brooks Automation Inc. 742.5 11.76 89.4% (6.4%) (7.1%) 0.8x 0.9x 6.6x 7.1x
ATMI Inc. 670.7 21.01 83.9% 9.8% 11.6% 1.5x 1.3x 8.1x 6.7x
Median 1,453.0$ 79.8% (0.3% ) (7.1% ) 1.4x 1.4x 6.6x 6.8x
70%
80%
90%
100%
110%
120%
130%A
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Nasdaq Tech Hardware
80%
85%
90%
95%
100%
105%
110%
115%
120%
03
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04
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Nasdaq Tech Hardware
Comparable
Trading
Summary
(continued)
Public Market Trading Statistics Tech Hardware
Note: Public comparables exclude companies with market capitalization below $500 million.
23
Electronic Manufacturing
Jabil Circuit Inc. 4,846.5$ 23.45$ 85.6% 6.5% 20.1% 0.3x 0.3x 5.7x 4.8x
Flextronics International Ltd. 4,585.9 6.68 88.6% (7.5%) 23.1% 0.2x 0.2x 4.9x 4.0x
Molex Inc. 4,865.7 27.59 96.9% (0.2%) (3.3%) 1.3x 1.3x 6.7x 6.8x
Celestica Inc. 1,893.5 8.95 81.8% (1.4%) 11.0% 0.2x 0.2x 4.2x 3.8x
Plexus Corporation 1,132.2 32.37 83.6% 12.3% 16.1% 0.5x 0.5x 8.0x 6.9x
Benchmark Electronics Inc. 917.3 15.88 84.2% 9.1% 45.6% 0.3x 0.3x 7.4x 5.2x
TTM Technologies Inc. 840.2 10.33 53.1% (0.7%) (2.6%) 0.9x 0.9x 5.2x 5.3x
Sanmina-SCI Corporation 725.0 8.90 70.9% (5.0%) (5.1%) 0.2x 0.2x 4.2x 4.3x
Multi-Fineline Electronix Inc. 629.3 26.49 92.3% 14.1% 17.3% 0.7x 0.6x 5.9x 5.0x
Median 1,132.2$ 84.2% (0.2% ) 16.1% 0.3x 0.3x 5.7x 5.0x
PCs, Servers, and Computing Components
Apple Inc. 546,057.5$ 583.98$ 90.7% 33.2% 43.4% 3.1x 2.6x 8.2x 6.7x
IBM Corporation 238,863.5 207.08 98.3% 1.2% 2.5% 2.4x 2.3x 9.5x 9.3x
Samsung Electronics Co. Ltd. 160,467.9 1,229.87 98.7% NA NA 1.0x NA 5.8x NA
Hewlett-Packard Company 48,959.0 24.76 59.3% (1.5%) 3.5% 0.6x 0.6x 4.6x 4.4x
Dell Inc. 28,844.7 16.37 89.2% 0.6% 2.7% 0.3x 0.3x 3.7x 3.6x
Xerox Corporation 10,485.5 7.78 71.3% 1.1% 3.4% 0.8x 0.8x 5.6x 5.4x
Lenovo Group Ltd. 9,938.7 0.96 96.8% NA NA 0.2x NA 8.9x NA
NCR Corporation 3,729.5 23.50 98.5% 8.6% 138.3% 0.7x 0.7x 12.0x 5.7x
Pitney Bowes Inc. 3,429.5 17.13 65.0% (0.8%) 4.2% 1.3x 1.3x 6.5x 6.2x
Diebold, Inc. 2,480.9 39.45 91.9% 7.8% 18.3% 0.9x 0.8x 8.4x 8.2x
Lexmark International Inc. 2,142.0 30.10 77.8% (4.0%) (5.5%) 0.4x 0.5x 2.7x 2.8x
ScanSource, Inc. 903.5 32.96 82.4% 9.2% 5.9% 0.3x 0.3x 7.3x 6.6x
Median 10,212.1$ 89.9% 1.2% 3.8% 0.8x 0.7x 6.9x 6.0x
Storage and Networking Components
Western Digital Corporation 9,117.7$ 38.81$ 87.3% 81.2% 157.2% 0.8x 0.5x 4.2x 2.1x
SanDisk Corporation 8,968.6 37.00 69.2% (11.0%) (44.0%) 0.9x 1.0x 3.1x 5.1x
QLogic Corporation 1,702.0 17.25 90.8% (4.6%) 16.9% 2.2x 2.3x 7.8x 6.7x
Emulex Corporation 753.4 8.68 77.6% 8.0% 267.5% 1.1x 1.1x 9.2x 4.5x
Median 5,335.3$ 82.5% 1.7% 87.1% 1.0x 1.0x 6.0x 4.8x
Total Tech Hardware Median 3,429.5$ 85.6% 0.4% 5.8% 1.1x 1.2x 7.4x 6.6x
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/30/12 Pending PLX Technology Inc. Fun World Media, Inc. 300.8$ 2.6 x NA
04/24/12 Pending Cray Inc., Interconnect Hardware Assets Intel Corporation 140.0 NA NA
04/20/12 Pending Kawasaki Microelectronics, Inc. Megachips Corp. 104.2 NA NA
04/17/12 Pending IBM, Point-of-Sale Business Toshiba Tec Corp. 842.3 763.8 x NA
04/16/12 Pending SRS Labs Inc. DTS Inc. 114.4 3.5 x 65.2 x
04/13/12 Pending Objet Ltd. Stratasys Inc. 606.4 5.0 x 30.2 x
04/10/12 Pending X-Rite, Incorporated Danaher Corp. 629.6 2.7 x 11.1 x
04/09/12 Pending Elo TouchSystems, Inc. The Gores Group LLC 380.0 0.9 x NA
04/03/12 Pending DDI Corp. Viasystems Group, Inc. 267.8 1.0 x 7.9 x
03/26/12 Pending Comverge, Inc. Bayside Capital, Inc.; H.I.G. Bayside 50.9 0.4 x NA
03/22/12 03/22/12 Coolsand Holding Co., Ltd. RDA Microelectronics, Inc. 45.3 NA NA
03/21/12 04/05/12 BroadLight, Inc. Broadcom Corp. 205.0 NA NA
03/16/12 Pending NEXX Systems, Inc. Tokyo Electron Ltd. 248.9 3.9 x 36.0 x
02/22/12 02/28/12 Nidec Sankyo, Actuator Division OPTIS Co., Ltd. 84.6 NA NA
02/15/12 Pending SmartSynch, Inc. Itron, Inc. 100.0 NA NA
01/23/12 Pending Gennum Corporation Semtech Corp. 479.9 3.5 x 15.4 x
01/23/12 Pending Vaughn Energy Services DHS Services 100.0 2.6 x NA
01/18/12 01/18/12 Maxim Integrated Products Inc., Certain Assets Microsemi Corp. 44.0 NA NA
01/05/12 Pending Picochip Ltd. Mindspeed Technologies Inc. 105.6 NA NA
12/30/11 Pending Racine Federated, Inc. Badger Meter Inc. 57.3 NA NA
12/30/11 01/06/12 Vista Research, Inc. Aerostar International, Inc. 48.5 3.2 x NA
12/26/11 Pending Optrex Corporation Kyocera Corp. 256.9 NA NA
12/23/11 Pending Tenesol SA SunPower Corporation 165.4 NA NA
12/20/11 12/20/11 Anobit Technologies Ltd. Apple Inc. 400.0 NA NA
12/16/11 Pending Argox Information Co., Ltd. Sato Holdings Corporation 74.3 2.1 x NA
12/15/11 Pending Greatek Electronics Inc. Powertech Technology Inc. 343.1 NA NA
12/14/11 Pending Novellus Systems, Inc. Lam Research Corporation 2,941.8 NA NA
12/09/11 12/16/11 SiliconBlue Technologies, Inc. Lattice Semiconductor Corporation 62.0 NA NA
12/06/11 12/06/11 Alt Telecom Euroset Trade House LLC 70.0 NA NA
12/05/11 12/05/11 Zu Industries Inc. ProLogic, Inc. 76.6 NA NA
11/21/11 Pending Accu-Sort Systems, Inc. Datalogic SpA 135.0 1.5 x 7.6 x
11/18/11 11/18/11 Fairchild Industrial Products Company Rotork plc 75.8 3.6 x NA
Median 124.7$ 2.7x 15.4x
Recent M&A
Activity
Comparable Transactions Tech Hardware
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.
Note: Includes announced transactions over the last five months where enterprise value is publicly available and more than $40 million.
24
2.5x
1.4x
1.8x1.6x
1.3x1.5x 1.5x
2.1x
1.6x1.3x
2.9x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
0
50
100
150
200
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
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Transaction Volume Median LTM Revenue Multiple
Public Market Trading Statistics Telecom
Comparable
Trading
Summary
Stock
Performance
Last Twelve Months Last 30 Days
25
($ in millions) Stock Price CY 2012P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2012P LTM CY 2012P
Network Optimization
F5 Networks, Inc. 10,585.2$ 133.93$ 96.0% 21.5% 51.3% 7.5x 6.5x 22.8x 16.1x
Akamai Technologies, Inc. 5,805.3 32.59 79.0% 15.8% 15.1% 4.0x 3.6x 9.7x 8.5x
Riverbed Technology, Inc. 3,126.7 19.73 47.2% 14.3% 108.4% 3.4x 3.0x 21.3x 9.9x
Aruba Networks, Inc. 2,318.1 21.12 58.0% 22.4% 708.4% 4.4x 3.6x NM 14.9x
Ixia 896.9 12.60 73.3% 16.1% 40.3% 2.1x 1.9x 10.8x 7.6x
NetScout Systems, Inc. 859.7 20.69 77.6% 13.2% 31.1% 2.3x 2.1x 10.1x 8.0x
Median 2,722.4$ 75.5% 15.9% 45.8% 3.7x 3.3x 10.8x 9.2x
Fiber Optics
Finisar Corporation 1,507.9$ 16.52$ 57.5% 10.2% 62.9% 1.4x 1.3x 12.9x 7.9x
CIENA Corporation 1,462.1 14.82 51.5% 10.5% 200.0% 1.3x 1.2x 40.8x 13.6x
Infinera Corporation 784.1 7.16 79.8% 8.1% NM 1.3x 1.2x NM NM
Median 1,462.1$ 57.5% 10.2% 131.5% 1.3x 1.2x 26.9x 10.8x
Telecom/Networking Equipment
QUALCOMM Incorporated 109,422.2$ 63.83$ 92.7% 23.4% 28.0% 4.8x 4.2x 13.0x 9.9x
Cisco Systems, Inc. 108,553.6 20.16 94.6% 6.5% 23.8% 1.7x 1.6x 6.4x 5.2x
Ericsson 31,820.0 9.91 68.9% 1.3% (10.5%) 0.7x 0.7x 5.3x 5.4x
Nokia Corporation 13,326.6 3.59 42.7% (17.2%) (92.2%) 0.2x 0.2x 4.6x 32.5x
Juniper Networks, Inc. 11,340.3 21.43 53.0% (0.1%) 6.9% 1.9x 1.8x 11.6x 9.2x
Amphenol Corporation 9,440.7 58.14 94.0% 6.2% 7.1% 2.5x 2.4x 11.5x 10.8x
Research In Motion Limited 7,362.2 14.29 26.0% (23.9%) (42.0%) 0.3x 0.3x 1.5x 2.0x
Trimble Navigation Limited 6,753.3 54.14 96.8% 18.2% 44.2% 4.4x 3.7x 25.3x 17.6x
Harris Corporation 5,185.8 45.54 85.3% 2.3% 7.1% 1.2x 1.2x 6.1x 5.7x
Alcatel-Lucent, S.A. 3,491.9 1.54 26.0% (1.6%) (23.7%) 0.2x 0.2x 2.3x 2.6x
JDS Uniphase Corporation 2,796.8 12.17 54.3% 3.9% 30.1% 1.4x 1.3x 11.7x 9.0x
Polycom, Inc. 2,365.6 13.27 38.7% 2.5% 17.4% 1.2x 1.1x 7.5x 6.1x
ADTRAN Inc. 1,950.1 30.52 70.0% (6.2%) (20.7%) 2.1x 2.1x 8.4x 9.0x
Netgear Inc. 1,459.3 38.50 85.0% 15.4% 17.6% 0.9x 0.8x 7.3x 6.5x
Tellabs Inc. 1,377.2 3.77 68.8% (10.1%) NM 0.4x 0.4x NM 7.8x
Median 6,753.3$ 68.9% 2.3% 7.1% 1.2x 1.2x 7.4x 7.8x
65%
75%
85%
95%
105%
115%
125%A
pr-
11
Ma
y-1
1
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct-
11
No
v-1
1
Dec-1
1
Jan
-12
Feb
-12
Ma
r-1
2
Ap
r-1
2
Nasdaq Telecom
85%
90%
95%
100%
105%
110%
115%
03
/30
/12
04
/01
/12
04
/03
/12
04
/05
/12
04
/07
/12
04
/09
/12
04
/11
/12
04
/13
/12
04
/15
/12
04
/17
/12
04
/19
/12
04
/21
/12
04
/23
/12
04
/25
/12
04
/27
/12
04
/29
/12
Nasdaq Telecom
Comparable
Trading
Summary
(continued)
Public Market Trading Statistics Telecom
Note: Public comparables exclude companies with market capitalization below $500 million.
26
Carriers and Content Providers
AT&T, Inc. 193,346.3$ 32.91$ 100.0% 1.5% 23.4% 2.0x 2.0x 7.2x 5.9x
Verizon Communications Inc. 114,720.9 40.38 99.8% 3.8% 7.3% 1.8x 1.8x 5.7x 5.4x
Comcast Corporation 81,843.8 30.35 99.7% 9.9% 6.6% 2.3x 2.1x 6.8x 6.4x
DIRECTV, Inc. 33,343.3 49.28 92.3% 9.6% 12.5% 1.6x 1.5x 6.6x 5.9x
Time Warner Cable Inc. 25,140.2 80.45 96.2% 8.4% 11.1% 2.4x 2.3x 6.8x 6.3x
Dish Network Corporation 14,301.4 31.97 89.7% 3.5% (4.2%) 1.2x 1.2x 4.8x 5.0x
Sprint Nextel Corporation 7,433.5 2.48 38.4% 4.3% (22.2%) 0.6x 0.6x 3.6x 5.0x
Level 3 Communications Inc. 4,986.0 23.06 57.6% 50.2% 70.7% 2.9x 1.9x 14.6x 8.5x
Cablevision Systems Corporation 4,045.1 14.82 40.2% 1.1% (1.6%) 2.2x 2.2x 6.5x 6.6x
MetroPCS Communications, Inc. 2,651.3 7.30 38.9% 3.8% (2.6%) 1.1x 1.0x 4.1x 4.1x
Telephone & Data Systems Inc. 2,635.0 24.29 67.8% 0.6% 2.0% 0.7x 0.7x 3.3x 3.3x
EarthLink Inc. 862.3 8.12 96.7% 2.5% (7.4%) 0.9x 0.9x 3.9x 4.2x
Clearwire Corporation 719.1 1.46 24.3% 3.9% NM 4.2x 4.4x NM NM
Median 7,433.5$ 89.7% 3.8% 4.3% 1.8x 1.8x 6.1x 5.7x
Infrastructure Services
American Tower Corporation 25,882.1$ 65.58$ 100.0% 14.5% 18.3% 13.5x 11.8x 21.6x 18.3x
Crown Castle International Corporation 15,910.0 56.61 98.0% 9.0% 13.3% 11.2x 10.5x 17.8x 16.2x
SBA Communications Corporation 6,520.4 53.79 100.0% 23.8% 25.9% 13.2x 11.1x 21.1x 17.6x
Median 15,910.0$ 100.0% 14.5% 18.3% 13.2x 11.1x 21.1x 17.6x
Managed Services
Rackspace Hosting, Inc. 7,817.9$ 58.09$ 96.8% 29.0% 55.3% 7.6x 5.9x 26.6x 17.2x
Equinix, Inc. 7,666.6 164.20 95.2% 18.0% 31.5% 5.7x 5.1x 13.7x 11.1x
Interxion Holding NV 1,327.2 20.07 98.9% 15.9% 19.4% 4.7x 3.9x 11.6x 9.6x
Median 7,666.6$ 96.8% 18.0% 31.5% 5.7x 5.1x 13.7x 11.1x
Total Telecom Median 5,805.3$ 79.0% 8.1% 16.3% 2.0x 1.9x 8.4x 7.9x
($ in millions) Stock Price CY 2011P Multiples Summary LTM
Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Current Week High Revenue EBITDA LTM CY 2011P LTM CY 2011P
Date Date Enterprise LTM Multiples
Announced Closed Target Acquirer Value (mm) Revenue EBITDA
04/18/12 Pending Knology, Inc. WOW! Internet, Cable and Phone 1,488.9$ 2.9 x 8.3 x
04/15/12 Pending Openwave, Mediation and Messaging Marlin Equity Partners 55.0 NA NA
03/26/12 Pending Opnext, Inc. Oclaro, Inc. 133.5 0.4 x NA
03/18/12 Pending AboveNet, Inc. Zayo Group Inc. 2,149.8 4.5 x 11.2 x
02/29/12 02/29/12 Cabovisão S.A. Altice One SAS 60.1 NA NA
02/24/12 03/19/12 Lightwire, Inc. Cisco Systems, Inc. 271.0 NA NA
02/20/12 Pending Vividwireless Pty Ltd. SingTel Optus Pty Ltd. 247.5 NA NA
02/20/12 02/22/12 Traffix Systems Ltd. F5 Networks, Inc. 130.0 NA NA
02/05/12 Pending SureWest Communications Consolidated Communications Holdings Inc. 560.3 2.3 x 6.5 x
02/02/12 Pending Orange Austria Telecommunication GmbH Hutchison 3G Austria GmbH 1,712.2 NA NA
01/31/12 03/23/12 M5 Networks, Inc. ShoreTel, Inc. 159.8 NA NA
01/27/12 03/16/12 RuggedCom Inc. Siemens Canada Limited 383.8 3.6 x 21.0 x
01/20/12 02/29/12 QLogic Corp., Certain Assets Intel Corporation 125.0 NA NA
01/01/12 Pending Netmagic Solutions Private Limited NTT Communications Corporation 172.8 NA NA
12/23/11 02/17/12 Orange Communications SA Apax Partners Worldwide LLP 2,130.6 1.5 x NA
12/22/11 01/31/12 Internode Pty. Ltd. iiNet Ltd. 106.3 NA NA
12/20/11 12/31/11 Conference Plus, Inc. Arkadin, Inc. 41.0 1.0 x NA
12/19/11 Pending RuggedCom Inc. Belden CDT (Canada) Inc. 224.0 2.1 x 12.2 x
12/16/11 Pending Advanced Wireless Services Spectrum Licenses Cellco Partnership, Inc. 315.0 NA NA
12/15/11 04/10/12 NextG Networks, Inc. Crown Castle International Corp. 1,000.0 NA NA
11/21/11 11/30/11 TransACT Capital Communications Pty Ltd. iiNet Ltd. 59.0 0.8 x 3.5 x
11/06/11 01/27/12 Tekelec Private Equity Consortia 507.1 1.3 x 11.4 x
Median 235.8$ 1.8x 11.2x
Recent M&A
Activity
Comparable Transactions Telecom
Summary
Statistics
M&A Transaction Volume and Revenue Multiples
Note: Includes announced transactions over the last six months where enterprise value is publicly available and more than $40 million.
Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.
27
2.6x
1.9x2.1x 2.1x 2.0x
1.7x
2.1x 2.1x
1.5x 1.5x
2.3x
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
4.0x
0
50
100
150
200
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
LT
M R
even
ue M
ultip
leTra
nsa
ctio
n V
olu
me
Transaction Volume Median LTM Revenue Multiple
Selected HW&Co. TMT Transactions
a portfolio company of
has been acquired by
GFI Energy Group
a division of
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
a portfolio company of
has received a strategic
investment from
a portfolio company of
has acquired
a portfolio company of
has merged with
has been acquired by
has received a minority
investment from
The Mill
a portfolio company of
has been acquired by
a portfolio company of
has been acquired by
has acquired
a portfolio company of
has been recapitalized by
a portfolio company of
has been acquired by
has received a strategic
investment from
28
a portfolio company of
has been acquired by
has been acquired by
a portfolio company of
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TMT Group Overview
and Disclosures
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29