© 2014 Clipperton Finance Limited
Clipperton White Paper
Outsourced Data Management: From Data Centers to Cloud Services,
Inside the Backbone of a New Economy
February, 2014 About Clipperton Finance
Clipperton is a leading European corporate
finance boutique exclusively dedicated to High
Tech and Media industries. Clipperton Finance
advises high growth companies on mergers and
acquisitions, financial transactions, fundraisings,
and capital increases. With a team based in
London, Paris and Berlin and an international
reach, Clipperton is a European leader in the
sector.
Disclaimer:
This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for you information
and should not be construed as a solicitation or offer to buy or sell any securities or financial instruments. Clipperton Finance
Limited is authorized and regulated by the Financial Services Authority. Registered No.523695 – More Details P51
LONDON: 15 Stratton Street, London, W1J 8LQ
PARIS: 10 Rue Du Mont Thabor, Paris 75001
BERLIN: Neue Schönhauser Str. 2., Berlin 10178
Thomas Neveux, Partner
Antoine Ganancia, Senior Associate
Kulchetan Sanga, Associate
© 2014 Clipperton Finance Limited
Hosters: Adapt to Survive
2
Executive Summary
As investment needs are growing exponentially, a specialized asset class isemerging upstream: Wholesale Vendors. These new players offer realestate and technical infrastructure management services allowing clients’to improve capital efficiency by focusing investments on their core business.
Wholesalers are deploying large amounts of capital with low risk long-termreturns.
Hosters are facing key challenges…i) Traditional data hosting becomes largely commoditizedii) High value cloud services have emerged down the value chain
… And need to move fast:i) Mainly going downstream (incorporating high tech cloud services)ii) And Consolidating for scale
New Asset Class: Wholesalers
?
A Fast Maturing Outsourced Data Management Value Chain
For most Companies, Data Management needs are growing too fast andbecome too complex to be handled internally.
Naturally, the fast growing Outsourced Data Management Market isorganizing itself around highly specialized operators in a rapidly structuringvalue chain.
UPSTREAM
DOWNSTREAM
1
2
3
© 2014 Clipperton Finance Limited
Outsourced Data Management: A Maturing Value Chain
3
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in the Data Management Space
Focus on Selected European Players
About Clipperton Finance
Table of Contents
I
II
III
IV
V
VI
© 2014 Clipperton Finance Limited
The Data Management Industry has now Entered its Third Expansion Phase
4
Explosion of the “client-server” computing architecture within major corporations
1
2
3
Explosion of Internet usage Explosion of content consumption (video…)
1990’s 2000’s Today
26
33
41
51
62
76
2012 2013 2014 2015 2016 2017
Consumer Internet Traffic (EB/month)
0.40.5
0.70.8
0.91.0
1.1
1.4
1.61.7
2.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Internet Users worldwide (billions)
Servers are grouped into dedicated “Data Centers”
Growing number of servers are housed in the large ‘dotcom era’
Data Center inventory
Driven by increased usage, exploding IP traffic leads to a
buoyant market
Source: Cisco
Source: World Bank
© 2014 Clipperton Finance Limited
Clear and Sustained Exogenous Trends Driving the Expansion of the Data Management Market
5
Explosion of computing needs …
… not offset by innovation
100
145
210
303
439
100140 142
164183
2011 2012 2013 2014 2015
Amount of Digital Data Stored Areal Storage Density*
This gap drives the need for more servers …
… and more Data Centers to house them in!
Digital Data Storage & Areal Storage Density (*) Comparative Evolutions(base 100 in 2011)
*Number of bytes per square inch / Source: PFS Violin White Paper, IDC, Clipperton Finance analysis
2633
41
51
62
76
2012 2013 2014 2015 2016 2017
Internet Vidéo Web, email & data File sharing
Internet Traffic (EB/month)
Multimedia consumption pushed by access point multiplication
Broader Internet usage in Emerging Countries
Cloud services
Video
Mobile
Cloud
2000 2020
$80B
Projected Annual Data Center Construction (billion USD)
Source: C. Belady, Microsoft “Projecting annual new datacenter construction market”
2000-2020: 9% CAGR
Explosion of Data Center construction
$15B
© 2014 Clipperton Finance Limited
50%50%
13%
87%
Explosion of Data Centers Needs Foster Growth of Outsourced Solutions
6
In-house DC
As cost and complexity of owning and operating a Data Center increases, Companies are less inclined to keep them in-house
Outsourcing Data Centers helps Companies refocus investments on core business
100
118
138
153
100
107112
118
2011 2012 2013 2014
Revenue Index MajorOutsourced DC Players
Global Data CenterInfrastructure Market
Outsourced DC Players Rev. Growth CAGR
15%
2012 2020e
* Outsourced DC Players Index: DLR, DFT, EQIX, TCY, INXNSource: Lifeline Datacenters, IDC, Canalys, Thomson, Clipperton Finance Analysis
Outsourced DC
610k sq.ft.
800k sq.ft.
US Data Center Stock Shifting to Outsourced Solutions
Outsourced DC Market Growth is Outpacing Overall DC Market
*
© 2014 Clipperton Finance Limited7
How is this Fast Growing
Outsourced Data Management
Market Structuring Itself
?
© 2014 Clipperton Finance Limited
A Large Market Inevitably Leading to Fragmentation of the Value Chain around Differentiated Business Models
WHOLESALE VENDORS
COLOCATION VENDORS
MANAGED HOSTING
Strong Outsourcing Trend
Telcos Corporations
What?
TELECOM INFRASTRUCTURE
OUTSOURCED Data Center SPECIALISTS
FINAL CUSTOMERS
A portion of server to thousands
10-500 sqm1,000-10,000 sqm
Dedicated server andmanagement servicesoffered to customers.
Fitted DC space (cabinets,cages and racks to housetheir clients’ servers, …)
Shell DC space (“walls” aswell as facility security,secured power, …)
Chunk Size ?
Who ?
8
CLOUD SERVICES
Cloud Services rangingfrom IaaS enabling to SaaS
Bytes
© 2014 Clipperton Finance Limited
4 Segments Displaying Different Equity Stories
9
Wholesalers
Colocators
Hosters
Cloud Services
1
2
3
Low risk/Low Return Profile High risk/High Return Profile
Digital Realty, DupontFabros, Coresite
Equinix, Interxion, Telecity
Akamai, InterNAP, Iomart, Rackspace
Weighted average components of the ROCE per segment
4
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0% 50% 100% 150% 200%
WHOLESALERS
COLOCATORS
HOSTERS
5% ROCE
10% ROCE
15% ROCE
20% ROCE CLOUD SERVICES
VMware, Citrix, Salesforce, Netsuite
Sou
rce: Tho
mso
n O
ne, C
lipp
erton
Fina
nce a
na
lysis
2012 Sales / Capital Employed
20
12
EB
IT M
argi
n
4
3
2
1
© 2014 Clipperton Finance Limited
Wrap Up
Early 2000s
In-House
Hosters
Colocation
Wholesale
2013+
Data Management Market Evolution
KEY TAKE AWAYS
10
The fast growing outsourced DataManagement market is maturing,leading to fragmentation of thevalue chain into identifiable assetclasses
A new class of players haveemerged: the Wholesalers, thatneed to be specifically analyzed
© 2014 Clipperton Finance Limited
Outsourced Data Management: a Maturing Value Chain
11
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in Data Management Space
Focus on Selected European Players
About Clipperton Finance
Table of Content
I
II
III
IV
V
VI
© 2014 Clipperton Finance Limited
Wholesalers: Widely Used & Praised by IT Bellwethers
12
“DuPont Fabros has always proven to be a great customer-focused partner with a fantastic mission-critical product”
Source: DFT’s testimonials
“We consider DuPont Fabros one of our most trusted partners. They have yet to miss a committed delivery
date and their operational expertise is second to none.”
Source: DFT’s testimonials
“Digital Realty is the perfect investor able to provide the stable environment we need to
pursue our growth in France”
Richard Viel, deputy CEO of Bouygues Telecom
“By leasing space in its facility, we are able to move forward immediately with our Data Center plans
without the significant capital investment ordinarily associated with large hosting projects”
Oliver Herrmann,Deputy COO of Capgemini… sold in 2013 its Parisian Data Center facilities for
$80m to…
… signed in 2009 a turn-key Data Center lease agreement with…
… uses Data Centersfacilities of…
… uses Data Centers facilities of…
© 2014 Clipperton Finance Limited
Wholesale Market is Growing at a Fast Pace
13
Source: JP Morgan, Clipperton Finance analysis
0.40.6
0.8
1.2
1.7
2011 2012 2013 2014 2015
Wholesale market in Europe ($b)
WORLDWIDE MARKET EUROPEAN MARKET
2.43.1
4.1
5.3
6.9
2011 2012 2013 2014 2015
Worldwide wholesale market ($b)
Source: JP Morgan, Clipperton Finance analysis
© 2014 Clipperton Finance Limited
2 Major Wholesalers Have Emerged in the US: Digital Realty & DuPont Fabros
14
100+ facilitiesWorldwide combining
18 million square feet
10+ facilitiesLocated in the US combining
2.5 million square feet
Clients include:
$1.3b2012 Revenue
Clients include:
listed since 2004 Listed since 2007
$12bEnterprise Value
$332m2012 Revenue
$2.5bEnterprise Value
© 2014 Clipperton Finance Limited
Upstream to Colocators, Wholesalers Have Found their Sweet Spot in the Value Chain
15
Real Estate
TechnicalInfrastructure
ProximityServices
TelecomServices
HardwareComputers
SimpleCloud Services
AdvancedCloud Services
CORE BUSINESS
CORE BUSINESS
CORE BUSINESS
CORE BUSINESS
WHOLESALEMANAGEDHOSTING
1 COLOCATION2 3CLOUD SERVICES
4
© 2014 Clipperton Finance Limited
Offering Low Risk x Long Term Returns to Investors
16
1-3 years5-7 years8-10 years
StrongLimitedVery low
WHOLESALEMANAGEDHOSTING
1 COLOCATION2 3
PAYBACK PERIOD
15% 20-30% 30-50%50%
UNLEVERAGED IRR
60%+50% 30-40%
20-30%EBITDA MARGIN
RISK LEVELLow High Low High Low High
CLOUD SERVICES
4
Fair
Low High
3-5 years
© 2014 Clipperton Finance Limited
Why did Wholesalers Emerge? To Allow Other Players to Focus on Core Business
17
OUTSOURCE INFRASTRUCTURE
By outsourcing Data Center facilities companies avoid heavy investment in non-core assets
Financial Structure Ratios (2013e)
Source: Thomson One, Yahoo Finance, Clipperton Finance Analysis
-0,4
-0,2
0
0,2
0,4
0,6
0,8
1
1,2
1,4
0 1 2 3 4 5 6 7
Fin
an
cia
l L
ev
era
ge
(Net
LT
debt/E
quity)
Capital Intensity(Fixed Assets/Sales)
COLOCATORS WHOLESALERS
HOSTERS
INTERNET GIANTS
Outsourcing Capital Intensive Investments
© 2014 Clipperton Finance Limited
Outsourced Data Management: a Maturing Value Chain
18
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in Data Management Space
Focus on Selected European Players
About Clipperton Finance
Table of Content
I
II
III
IV
V
VI
© 2012 Clipperton Finance Limited. Private and confidential.
Hosting Market is Crowded, with Basic Offerings now Largely Commoditized
19
COLOCATION
A $13bn Global Cloud Infrastructure Market in 2012
45% share 26% share
5%
4.5%
4%
TELCOS
COLOCATORS
INTERNET GIANTS
REGIONAL PLAYERS
SOFTWARE
HARDWARE
Managed Hosting is a $5.6bn market with
three leaders occupying a ~15%
market share
With a very long tail of diversified players
Source: Synergy Research Group, Clipperton Analysis
Amazon the clear leader in IaaSand ranks second behind
Salesforce in PaaS segment
HOSTING HOSTING
MANAGED HOSTING IAAS & PAAS
Client leases an entire server that is not shared. More flexible than shared hosting due to full control over the servers/ choice of OS. Server
hardware is owned by the provider
IaaS: Virtualized Computing / storage delivered over the internet + CDN/ADN
PaaS: Developer services bundling infrastructure and a programming language level environment
CLOUD SERVICES
IAAS
ENABLEMENTSAAS
29% share
© 2012 Clipperton Finance Limited. Private and confidential.
Some Value Has Shifted Downstream To New Cloud Services
20
… and Outperform Hosters in Terms of Shareholder Value created
Cloud Services are Clearly Gaining Momentum…
Increasing innovation further downstream has encouraged the emergence of complex Cloud Services offerings
Revenue and Index analysis based on: Hosters: Iomart, Akamai, Internap, Cloud Services: Salesforce, NetSuite, Vmware, Citrix
0
100
200
300
400
500
600
Jan
-09
Ap
r-0
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09
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11
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-11
Jan
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r-1
2
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Stock Price Evolution (index 100, Jan.09)YoY Revenue Growth
0%
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012
Cloud Services
Hosting not inc. RAX
© 2013 Clipperton Finance Limited. Private and confidential.
How can Hosters React?
21
COMMODITIZATION
Fragmented market
Flattening Revenue Growth
Highly competitive landscape
Ubiquitous Service Offerings
TWO OPTIONS TO SURVIVE:
CONSOLIDATE FOR SCALE
Capitalize on market fragmentation to rapidly build customer base/ geographical expansion via acquisition
MOVING DOWNSTREAMBreak free from commoditization by combining recurring revenue
from service subscriptions with elastic infrastructure e.g.
• Internally develop new downstream offerings• Via acquisition of cloud software/ service providers
12 3
© 2013 Clipperton Finance Limited. Private and confidential.
Consolidation to Rapidly Build Large Scale Client Bases - A “Land Grab” - Examples
22
Date: Apr-13 Deal Value: $526m Rev Multiple: 3.3x EBITDA Multiple: 12.4x
Rationale:Increases scale and reach of Cogeco Cable's IT hosting business: addition of infrastructure including 19 Data Centers and 21 points-of-presence throughout NA & EU.
AQCUIRES
TRANSACTION DETAILSRationale:Combines SoftLayer with IBM SmartCloud into a global platform; acquires 21,000 customers across 140 countries.
AQCUIRES
TRANSACTION DETAILS
Date: Jul-13 Deal Value: $2.0bn Rev Multiple: 6.0x EBITDA Multiple: 14.9x
Date: Dec-12 Apr-13 Sep-13 Deal Value: $2.4m $11m $12.4m Rev Multiple: - 2.4x 1.5x EBITDA Multiple: - 11.2x 3.3x
AQCUIRES
European hosting services
TRANSACTION DETAILS
Rationale:Numerous acquisitions to expand into new markets with a particular recent focus on Scandinavia.
May-13Three UK based hosting acquisitions in 12 months with the aim to become the leader in UK hosting services
Media & Communications company Multinational Technology and Consulting Founded in 2006 – Data Center server and managed hosting provider
Founded in 1999 - Internet hosting services
AQCUIRES
Colocation and hosting providor
Nov-13
Nov-13
Nov-12 Aug-11
Sep-11
Aug-12
© 2012 Clipperton Finance Limited. Private and confidential.
Going Downstream, What Does it Mean?
23
Historically, Hosting offerings evolved from simple colocation to IaaS & PaaS.
CLOUD SERVICES
SAASIAAS ENABLING
IAAS & PAASMANAGED
HOSTING
SHARED
HOSTINGCOLOCATION
OS
SOFTWARE
Client leases an entire server that is
not shared
Mass market shared
infrastructure hosting
IaaS: Virtualized Computing/ storage delivered over the internetPaaS: Developer services bundling infrastructure and a programming
language level environment
OS
Technology Specific:• Unified Communications• Cloud Management/ Automation• Cloud Security
Monitoring / Diagnostics:
• Power
• Cooling
• Analytics
Traditional equipment space
and bandwidth for rental
Load Balancing / Traffic Optimization:
• Web app acceleration
Sector Specific:• Compliance software/ services• Financial services solutions
Basic Business Applications:• Email• Cloud Storage• Database• CRM
Internally developed services such as
load balancing and monitoring begin to
blur the line but major players will
exhibit a shift towards more
downstream offerings: IaaS optimizing
& enabling services and/or SaaS.
So, what’s next?
HOSTING
© 2013 Clipperton Finance Limited. Private and confidential.
Hosters can Progress “Downstream” via Internal Development and/or Acquisitions Examples
24
Date: Jan-13 Deal Value: $55m Rev Multiple: 1.8x EBITDA multiple: 11.5x
Rationale:To offer cloud-based voice services and a full suite of enterprise-grade cloud servers and services.
AQCUIRES
TRANSACTION DETAILS
Founded: 1995 Overview: Cloud Service Provider
Founded: 2001 Overview: Cloud Communications
Date: Nov-12 Deal Value: £55m Rev Multiple: 1.1x EBITDA multiple: n.a.
Rationale:Unified communications, remote desktop and advanced security services; creates largest EU mid-market hosting provider.
AQCUIRES
TRANSACTION DETAILS
Founded: 1996 Overview: Managed Services
Founded: 1995 Overview: Unified Communications
Founded: 2010Transaction Date: Mar-13 Overview:Error tracking software
Founded: 1998 Overview: IT HostingAQCUIRES
Founded: 2012Transaction Date: Feb-13 Overview:Cloud database-aaS (MondoDB)
Founded: 2010Transaction Date: Aug-12 Overview:Mailbox web service APIs
Has developed extensive software, advisory and support services largely utilising open source technologyDEVELOPED
Cloud Monitoring
Load Balancing
Backup & Replication
IaaS Enabling SaaS
Rackspace email
Rackspace Databases
Cloud File Storage
Enables users to have servers delivered with a full range of pre-installed SaaS apps (CRM, database management, …)DEVELOPED
IaaS Enabling SaaS
• Customers can opt for a pre-installed software environment.
• vApps: specific professional apps (CRM, database management, e-commerce, …).
• vSphere / vCloud dedicated cloud offering w/Vmware partnership.
• Private Cloud® offering.
Has developed extensive software –particularly useful for personal and small business useDEVELOPED
IaaS Enabling SaaS
• MyWebsite; website creation platform.
• 1&1 email: Instant Mail / MailXchange/ Microsoft Exchange 2013.
• Mobile app cloud server management.
• Mobile app server monitoring.
Via Internal Development Via Acquisition
© 2012 Clipperton Finance Limited. Private and confidential.
Rackspace Example: Differentiation Seems to be Paying Off
25
Also Outperforming Hosters and Cloud Services in terms of Value Created for Shareholders
Revenue Growth Contrasts with other Hosters and Exceeds Cloud Services growth
The success of Rackspace (a serial acquirer and developer of innovative cloud services) suggests thatthe first strategy for winners will be to move downstream
5%
10%
15%
20%
25%
30%
35%
2009 2010 2011 2012
Cloud Services
Hosting not inc. RAX
Rackspace
0
200
400
600
800
1000
1200
1400
Jan
-09
Ap
r-0
9
Jul-
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Oct
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r-1
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Jul-
11
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-11
Jan
-12
Ap
r-1
2
Jul-
12
Oct
-12
Jan
-13
Stock Price Evolution (index 100, Jan.09)YoY Revenue Growth
Revenue and Index analysis based on: Hosters: Iomart, Akamai, Internap, Cloud Services: Salesforce, NetSuite, Vmware, Citrix
© 2013 Clipperton Finance Limited. Private and confidential.
Differentiation Should be the Priority, Consolidation Will Not be Sufficient
26
#1 WINNERS
2nd
PLACE
LARGE
SMALL
TRADITIONAL HOSTING HIGHLY TECHNICAL/DIFFERENTIATED
CO
MP
AN
Y S
IZE
INNOVATORS:
• Smaller innovators to be acquired by hostersfor their tech expertise
SMALLER/ REGIONAL PLAYERS:
• Various players acquired for major players’ consolidation for scale
© 2014 Clipperton Finance Limited
… What About Colocators? They seem to go Upstream with the Wholesalers, a Good Idea?
27
Moving Downstream: HostersMoving Upstream: Wholesalers & Colocators
Evolution of ROCE components until 2012 among key players
EBIT
Mar
gin
Sales/ Capital Employed
0%
5%
10%
15%
20%
25%
30%
35%
40%
0% 50% 100% 150% 200%
2008
2012
2009
2011
2012
2010
2008
2012
2009
2010
2008
2009
2010
2011
2012
Wholesalers
Wholesalers
Wholesalers
Colocators
Wholesalers
Hosters
Wholesalers
Cloud Services
5% ROCE
10% ROCE
15% ROCE
20% ROCE
Sou
rce: Tho
mso
n O
ne, C
lipp
erton
Finan
ce An
alysis
© 2014 Clipperton Finance Limited
Outsourced Data Management: a Maturing Value Chain
28
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in Data Management Space
Focus on Key European Players
About Clipperton Finance
Table of Content
I
II
III
IV
V
VI
© 2014 Clipperton Finance Limited
Comparables Analysis
Valuation Analysis
29
CompanyMarket Cap
as @ Jan-14Enterprise Value
as @ Jan-14
Revenue Revenue EBITDA EV / Revenue EV / EBITDA P/E
Growth CAGR Margin
USDm USDm 2013-14 2012-14 2013 2014e 2013 2014e 2013 2014e 2013 2014e
Wholesalers
Dupont Fabros 1,632 3,162 8.8% 10.6% 63.9% 63.9% 8.5x 7.8x 13.2x 12.2x 28.7x 18.4x
CoreSite 706 1,348 14.0% 14.0% 44.9% 45.7% 5.7x 5.0x 12.7x 11.0x 71.8x 70.2x
Digital Realty 6,785 12,200 8.0% 11.7% 58.0% 58.3% 8.3x 7.6x 14.2x 13.1x 26.7x 42.6x
Mean 10.3% 12.1% 55.6% 56.0% 7.5x 6.8x 13.4x 12.1x 42.4x 43.7x
Colocators
Equinix 8,834 12,135 12.1% 12.8% 46.2% 46.7% 5.6x 5.0x 12.2x 10.8x 108.2x 46.8x
Telecity 2,539 3,012 13.1% 14.7% 47.1% 47.8% 5.6x 4.9x 11.8x 10.3x 12.9x 11.1x
Interxion 1,689 2,070 11.3% 11.4% 43.0% 44.5% 4.9x 4.4x 11.5x 10.0x n/m 32.9x
Mean 12.2% 12.9% 45.5% 46.3% 5.4x 4.8x 11.8x 10.4x 60.6x 30.3x
Hosters
Akamai 8,695 8,128 14.0% 13.9% 44.0% 43.0% 5.2x 4.6x 11.8x 10.6x 24.4x 22.6x
Iomart 506 544 21.6% 24.7% 41.1% 42.3% 6.4x 5.2x 15.5x 12.4x 19.5x 14.6x
Internap 408 541 7.5% 4.9% 20.7% 26.6% 1.9x 1.8x 9.3x 6.8x n/m n/m
Rackspace 5,344 5,146 16.7% 16.8% 32.9% 32.8% 3.4x 2.9x 10.2x 8.8x 62.7x 52.4x
Mean 14.9% 15.1% 34.7% 36.2% 4.2x 3.6x 11.7x 9.6x 35.5x 29.9x
Cloud Services
Vmware 42,189 36,802 14.5% 13.6% 40.3% 40.3% 7.1x 6.2x 17.6x 15.4x 29.2x 25.5x
Citrix 11,316 10,621 11.3% 12.2% 32.8% 31.1% 3.6x 3.3x 11.1x 10.5x 20.5x 18.1x
Salesforce 36,011 37,182 28.7% 30.8% 16.6% 17.7% 9.4x 7.3x 56.4x 41.1x n/m 122.7x
Netsuite 8,264 8,060 29.4% 31.3% 10.7% 8.6% 19.6x 15.2x 183.2x 175.2x n/m n/m
Mean 21.0% 22.0% 25.1% 24.4% 9.9x 8.0x 67.1x 60.5x 24.8x 55.5x
Source: Thomson One
© 2014 Clipperton Finance Limited
Relevant M&A deals in the DC industry
Focus on Selected Deals in the Upstream Segment
30
Date Target AcquirerDeal
ValueTarget Rev.
EV/Rev. Rationale
Jun-13 - - -
• A 23k sq.ft. Facility located in US Southeast's most active datacenter cluster that will provide Centrilogic with direct access to new large enterprises.
Jul-12 $1.1b - -
• A deal part of DRT strategy to better address the European market.
• 750k sq.ft. facility in London for $1.1b, showing a valuation of $1.5k/sq.ft.
Jul-12 $320m $40-45m 7-8x
• Asia Tone strengthens Equinix position in the Asia-Pacific region
• The deal values the 80K sq.ft. of Data Center space at $4k/Sq.ft.
Asia Tone
Aug-11 $144m $22m 7x
• The deal allows Telecity to better capture the strong and growing demand for storage capacity in Ireland
• Telecity acquired 64sq.ft. At $2.4k/sq.ft.
Oct-13 $440m $85m 5x• Enables NTT Com to more than double its Data
Center space in the US.• NTT will also use Raging Wire’s patented
technology to deploy sophisticated Data Centers.
© 2014 Clipperton Finance Limited
Selected M&A Activity in the Upstream Segment
31
Date Acquiror Nat. Target Nat. Description Rationalesq.ft. acquired
Value EV/RevEV/ EBITDA
EV/sq ft
Feb-14 Cologix US BZ US Datacenter providerAcquiring the leading interconnection points in underserved markets
32k n.a. - - -
0ct-13 NTT Com JP RagingWire US Datacenter provider US Expansion n.r. $350 (80%) 5.1x - -
Sep-13 Rogers Communications CAN Pivot Data Centers CAN Datacenter provider Data Center portfolio build-out n.r. $155m 5x - -
Aug-13 Mellanox US Kotura US Technology provider Improve performances n.r. $82m 5.5x - -
Jun-13 Zayo US Core NAP US Datacenter provider Geographic expansion 15k n.a. - - -
Jun-13 Centrilogic US Dacentec BEL Data Center operator Geographic expansion 23k n.a. - - -
Apr-13 NTT Facilities JAP Unitrio THA Datacenter builder Improve offering n.r. n.a. - - -
Dec-12 365 Main US 16 Equinix datacenter US 16 facilities in the US Upstream move 280k $75m - - $270
Nov-12 Telecity UK Academica FIN Datacenter operator Geographic expansion 5k $36m - - $7,200
Aug-12 Telecity UK Tenue Oy FIN Datacenter operator Geographic expansion 2k $6m - - $3 000
Jul-12 Oracle US Xsigo US Technology providerDeliver a complete set of virtualization capabilities for cloud environments
n.r. n.a. - - -
Jul-12 Equinix US Asia tone CH Data Center colocator Strengthen Equinix position in the Asia-Pacific region 80k $320m 7-8x $4,000
Jul-12 Digital realty US Sentrum UK Ficility in London Geographic expansion 760k $1,1b - - $1,450
May-12 Six Degrees Group UK Datahop UK Technology providerImprove Network's capacity and allow to deliver broader range of services to its customers
n.r. n.a. - - -
Mar-12 AMD US SeaMicro US Technology providerAccelerate AMD’s strategy to deliver disruptive server technology
n.r. $334m 6.7x 27.8x -
Oct-11 Digital Realty Trust US Sun Center Drive US Facility located in California Increase storage capacity 69k $30m - - $435
Aug-11 Telecity Group UK Data Electronics Group IRE Data Center operator Geographic expansion 60k $144m 6.7x 13.9x $2,400
Apr-11 CenturyLink US SAVVIS US Data Center colocator Geographic expansion (48 Data Centers in NA, EU & Asia) 1.9m $3b 3x 13.1x $1,580
Jul-10 Digital Realty US RockWood Capital/365 Main US Facilities in the US Extend leadership 250k $725m - - $2,900
Oct-09 Equinix USSwitch and data facilities company
US Provider of Datacenter servicesAcquisition of 32 Datacenters in 22 markets, allowing Equinixto reach 16 new markets
150-200k $689m 3.5x 11.5x $3,445
May-07 Reuben Brothers SW Global Switch UK Wholesaler Buy out Morley Fund Management's 25% stake 3m $580m 2-3x - $193
Average 5,0x 16,6x $2 387
Median 5,5x 13,5x $1 990
© 2014 Clipperton Finance Limited
Focus on Selected Deals in the Downstream Segment
32
Date Target AcquirerDeal
ValueTarget Rev.
EV/Rev. Rationale
Apr-13 $2bn $333m 6x• This acquisition is part of IBM strategy to offer more
Hosting services to its clients.• It also allows IBM to expand geographically in the NA
& EU regions.
Feb-13 n.a. n.a. -
• ObjectRocket is a provider of Cloud Database-aaSSolutions.
• The acquisition allows Rackspace to improve its open-source & open-cloud offering.
Jun-12 $38.5m $12.5m 3x • Peer 1 becomes the #2 provider of SME managed
hosting services in the UK.• NetBenefit provides Peer1 with a platform allowing
to sustain their growth in Europe.
• Part of Vmware’s plan to deploy one of the biggest SDN (software-defined-network) of the industry.
$1.3bJun-12
Dec-10 $212m <$10m(e) -• Combine Heroku’s technology and product with
Salesforce reputation to make it a leader in cloud application platform for companies.
-n.a.
• Through the acquisition of Corente, Oracle plans to strengthen its networking portfolio.
• It enables Oracle to move toward a cloud services broker offering.
Jan-14 n.a.n.a. -
© 2014 Clipperton Finance Limited
Selected M&A Activity in the Downstream Segment
33
Date Acquiror Nat. Target Nat. Target Focus Rationale Value ($m) EV/Rev.EV/
EBITDA
Feb-14 IBM US Cloudant US Database-as-a-server Enhance its Big Data and analytics portfolio n.a. - -
Jan-14 Oracle US Corente US Software defined Networking Oracle plans to bundle SDN and cloud infrastructure n.a. - -
Dec-13 Evolve IP US Paragrid Inc US Cloud Services Geographic expansion n.a. - -
Oct-13 VMware US Desktone US Virtual desktop hosting platform Enhance desktop virtualization offering n.a. - -
Oct-13 NTT JP Virtela US Cloud based security Expand global network services coverage 525 - -
Dec-13 Akamai US Prolexic Technologies US IT Security Services Expand Akamai security services offering 370 - -
Sept-13 iomart Group UK Redstation UK Managed Hosting Enlarge Client base 13 1.6x -
Jul-13 Cinven UK Host Europe Group UK Hosting and Domain Services Capitalize on further consolidation in the hosting market 668 4.8x 13.8x
Jul-13 Intergenia DE Internet24 DE Managed Hosting Geographic expansion (DACH) n.a. - -
Apr-13 IBM US Softlayer US Hosting Services Enlarge footprint; Geographical expansion (NA & EU) 2,000 6.0x 14.9x
Mar-13 Rackspace US Exceptional US Error tracking Sfotware Improve service offering n.a. - -
Feb-13 Rackspace US ObjectRocket US Cloud Database-aaS Improve service offering n.a. - -
Jan-13 Intermedia US Telanetix US Cloud communication Offer cloud-based voice services 55 1.8x 11.5x
Jan-13 Cogeco Cable CAN Peer 1 Hosting CAN Managed Hosting Enlarge client base 526 3.3x 12.4x
Nov-12 Claranet UK Star UK Unified communications Improve service offering 88 1.1x -
Aug-12 iomart Group UK Melbourne Server Hosting UK Managed Hosting Geographic expansion (North England) 11 2.4x 11.2x
Aug-12 Rackspace US Mailgun US Mailbox webservices APIs Improve service offering n.a. - -
Jun-12 Peer 1 Hosting CAN NetBenefit UK Managed Hosting Geographic expansion (UK) 38.5 3.1x 10.1x
Jan-12 Host Europe UK Red Coruna ESP Hosting Services Geographic expansion (ESP) n.a. - -
Nov-11 iomart Group UK EQSN UK/US Managed HostingConsolidate position in hosting market; additional recurring revenue
3.8 1.5x 10.0x
Oct-11 ISIS Equity Partners UK The Onyx Group UKManaged Hosting, internet connectivity
Capitalize on further consolidation in the hosting market 43 1.8x -
Jun-11 Acens Technologies ESP Telefonica S.A ESP Colocation and Managed Hosting Enlarge SME client base (ESP) 132 2.7x 6.9x
Mar-11Novacap, Bank Street Capital, Caisse
CAN iWeb Group CAN Dedicated and web hosting Capitalize on further consolidation in the hosting market 47 1.6x 7.8x
Feb-11 Time Warner Cable US NaviSite US Managed Hosting Enlarge client base 230 1.8x 9.5x
Jan-11 Verizon Communications US Terremark Worldwide US Colocation and Managed Hosting Enlarge client base 1,842 5.4x 22.4x
Average 2.8x 11.9x
Median 2.1x 11.2x
© 2014 Clipperton Finance Limited
Selected European Fundraisings – 2010/13
34
Invest. Date
Company Name Nat. Description Investors Amount
Jul-13 eNovance FR Managed Hosting Odyssee venture, Entrepreneur Venture, BNP, OSEO $6m
Jul-13 Opbeat DN Web hosting Balderton Capital $2.7m
Apr-13 abiquo UK Managed Hosting Oxford Capital Partners, Balderton Capital, Nauta Capital $5m
Apr-13 Flexiant UK Managed Hosting Leopard Rock Capital $6m
Mar-13 OVH FR Managed Hosting Debt $181
Mar-13 Racktivity BEL Power Management services PMV-Vinnof, BigBang Ventures, Partech Ventures $3.2m
Jan-13 OnApp UK Managed Hosting LDC $20m
Nov-12 Flexiant UK Managed Hosting Leopard Rock Capital $5m
Sept-12 amplitada BEL Hosting Services Intel Capital, Swisscom Ventures, Hummingbird Ventures, Endeavour Vision $6m
Apr-12 NWIX Group, Ltd. UK Colocation & Hosting Services Alliance Fund Managers Ltd $0.8m
Feb-12 amplidata BEL Hosting Services Intel Capital, Swisscom Ventures, BigBang Ventures, Endeavour Vision $8m
Jan-12 AIMES Grid Services CIC, Ltd. UK Colocation & Hosting Services Alliance Fund Managers Ltd, RBS Capital $2m
Oct-11 Virtus Data Centres, Ltd. UK Wholesale & Colocation services Brockton Capital n.a.
Sept-11 Adapt PLC UK Managed Hosting Lyceum Capital Partners $47m
Jul-11 Intrinsic Technology, Ltd. IRL Colocation & Hosting Services RJD Partners $48m
May-11 Next Generation Data, Ltd. UK Power Management services Finance Wales Investments Ltd, Lombard Investments Inc. n.a.
Mar-11 TIXEL GmbH GER Colocation & Hosting Services enjoyventure Management GmbH, High-Tech Gruenderfonds Management GmbH $1m
Dec-10 Racktivity BEL Power Management services BigBang Ventures, Partech Ventures $8m
Nov-10 VirtenSys, Ltd. UK Colocation & Hosting Services Undisclosed $2.1m
Nov-10 abiquo UK Managed Hosting Balderton Capital, Nauta Capital, Eurecan $10m
Oct-10 Host Europe Corporation, Ltd. UK Managed Hosting Montagu Private Equity LLP $347m
Oct-10 Zimory GmbH GER Managed Hosting Creathor Venture Management GmbH, High-Tech Gruenderfonds Management GmbH, IBB $5.5m
Sept-10 amplidata BEL Hosting Services Swisscom Ventures, BigBang Ventures, Endeavour Vision $6m
© 2014 Clipperton Finance Limited
Outsourced Data Management: a Maturing Value Chain
35
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in Data Management Space
Focus on Selected European Players
About Clipperton Finance
Table of Content
I
II
III
IV
V
VI
© 2014 Clipperton Finance Limited
Clipperton List of Selected European ‘Data Management’ Players
36
Stars & emerging companies with a claim on online Data Management markets
© 2014 Clipperton Finance Limited
Table of Content: Selected European ‘Data Management’ Players
UPSTREAM
37
39
41
43
44
DEV OP TOOLS
45
45
PRICING OPTIMIZATION
46
ENERGY MANAGEMENT
49
48
48
49
RETAIL COLOCATION
CARRIER-NEUTRAL WHOLESALE
SECURITY
CLOUD-ENABLING SERVICES CLOUD MANAGEMENT
IAAS
42
41
40
40
3847
PLATFORMS
© 2014 Clipperton Finance Limited
Selected European Players – Focus on Telecity Group
38
Key Figures Presentation
Founded:
Nationality:
Rev. 2013:
Rev. 2012:
Market Cap.:
EV/EBITDA:
PER
Leading colocation provider in Europe with 33 Data Centers spread over key Tier I locations (London, Paris, Amsterdam, …).
With 10+ acquisitions since inception, Telecity has proved a key consolidator on the European colocation scene.
1998
UK
£329m
£283m
£1.4B
10.8x
20x
Context & Positioning
Thanks to an aggressive consolidation strategy and a well-handled execution,Telecity has managed to display an impressive 20% revenue growth CAGRfrom 2008 to 2013 making the Company one of the leading colocationprovider in Europe.
Telecity announced the launch of Cloud-IX, a cloud-neutral ecosystem thatwill be rolled out to customers and provide direct connectivity with cloudproviders such as Amazon Web Services, iland, CSC, Fujitsu, Outsourcery, etc.
Equinix8% Telecity
8%Interxion
7%Telehouse
4%Deutsche Telekom
4%Orange; 3%
Interoute; 2%BT; 2%
Colt; 2%
Other local players 60%
Source: Synergy Research Group
Retail Colocation Market Leaders – EMEAQ3 2013
Telecity has consistently outpaced LSE index (base 100)
-
50
100
150
200
250
300
350
Oct
-07
Feb
-08
Jun
-08
Oct
-08
Feb
-09
Jun
-09
Oct
-09
Feb
-10
Jun
-10
Oct
-10
Feb
-11
Jun
-11
Oct
-11
Feb
-12
Jun
-12
Oct
-12
Feb
-13
Jun
-13
Oct
-13
© 2014 Clipperton Finance Limited
Selected European Players – Focus on Global Switch
39
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Asset Value:
Est. EV
Founded in 1998 by the Reuben brothers (UK’s 2nd net worth individuals).
One of the largest carrier-neutral wholesale Data Centers vendors in Europe with 9 Data Centers spread over Tier I locations (London, Paris, Amsterdam, …).
Tier I clients include IBM, Cap Gemini or Atos.
1998
UK
£313m
£3.8B
£2.2-2.5B
Context & Positioning
(based on comps.)
With a specific Carrier-Neutral x Wholesale positioning, Global Switch hasmanaged to compete with the larger US-based players such as DigitalRealty or Dupont Fabros.
Global Switch is currently focusing on the Asian market where demand isbooming with large projects underway (Sydney, Hong-Kong, Singapore)and a newly appointed Managing Director to lead the Asian expansion. + Singapore & Sydney
Madrid
London
Paris
Amsterdam
Frankfurt
GLOBAL SWITCH Data CenterS
9 Datacenters
290,000 sqm
Carrier-neutral
© 2014 Clipperton Finance Limited40
Selected European Players – IaaS [1/3]
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Developer of advanced cloud software and management solutions.
Strong international reach (Europe, US, Asia).
Multi-awarded software solution (incl. Gartner’s Cool Vendor in Cloud Management 2011, 2013 Red Herring top 100 Europe).
2006
UK
n.a.
n.a.
$24.2m
Balderton, Nauta, Oxford Capital
+ Others
Context & Positioning Abiquo positions itself at the point at which enterprises are seeking to migrate from
legacy software systems to cloud based services.
To address this, Abiquo’s cloud computing toolkit enables enterprises to build,integrate and manage public and private clouds via a single homogenousdashboard environment.
Key Figures Presentation
Founded:
Nationality:
Rev. 2011:
Rev. 2010:
Funding:
Investors:
Provider of cloud orchestration software for on-demand, fully automated provisioning of cloud services.
Spun out from hosting company XCalibre Communications.
Cloud Orchestrator is now implemented by 100+ EU service providers.
2009
UK
n.a.
n.a.
$10.5m
Leopard Rock Capital
Context & Positioning
Flexiant acts as a facilitator in the trend for traditional hosting providers seeking tooffer more downstream, value add services. Of particular focus are telcos that wantto use their existing infrastructure to become fully fledged infrastructure-as-a-serviceplayers. By integrating Flexiant’s software, such service providers broaden theirhosting offerings into more advanced cloud services.
The recent fundraising will be used by Flexiant for international expansion,particularly in the US.
© 2014 Clipperton Finance Limited
Selected European Players – IaaS [2/3]
41
Key Figures Presentation
Founded:
Nationality:
Rev. 2011:
Rev. 2010:
Funding:
Investors:
Initially a Cloud Management SW offering, Onapp has pioneered the federated cloud model enabling their network of Service Providers to offer at scale CDN services, and storage.
900 clients in 87 countries, Signing 20-30 new SP’s per month.
2010
UK
n.a.
n.a.
$20m
LloydsDevelopment Capital
Context & Positioning Onapp has emerged in response to the widespread commoditization of traditional
hosting services and dominance of Amazon in the IaaS space. Their solution targetsthe significant longtail of hosters struggling to compete with Amazon’s sheer scale.
As many of the core building blocks of cloud hosting are now able to be bought off theshelf, Onapp has developed software that enables smaller hosters to operate anetwork or “federated” cloud model thus enabling the scale and product diversity ofbigger players.
Onapp plans to further utilize it’s network of service providers to offer a truemarketplace for cloud infrastructure.
Key Figures Presentation
Founded:
Nationality:
Rev. 2011:
Rev. 2010:
Funding:
Investors:
Cloud management platform for complex, virtualized and physical enterprise applications.
Product portfolio includes the eCloudManager based on Information Workbench semantic platform.
Numerous awards winner, including Computerwoche Best in Cloud Award 2012 (Category IaaS – Private Cloud).
2008
DE
n.a.
n.a.
€6m
Founder, SAP-Co-Founder
Context & Positioning
Fluid Operations offers a semantic cloud and Data Center managementsolution to overcome the complexities that enterprises experience inmanaging complex, virtualized application environments.
Offers automated handling of daily operations of a private or public eCloud.
Serves enterprise customers, such as Daimler, F.IT, SAP, Statoil and T-Systems.
© 2014 Clipperton Finance Limited
Selected European Players – IaaS [3/3]
42
Key Figures Presentation
Founded:
Nationality:
Rev. 2011:
Rev. 2010:
Funding:
Investors:
Carrier-grade cloud infrastructure management software provider.
Expanding international reach (US, Eurasia).
Numerous awards winner, e.g. Cloud Management Leader Award by Experton Group in 2013 and 2012 as well as Gartner “Cool Vendor” in 2011.
2007
DE
n.a.
n.a.
$26m
Creathor, HTGF, IBB, KfW, T-Venture, Deutsche Börse
Context & Positioning
Zimory’s infrastructure management software automates and simplifies thecreation, launch and management of all types of cloud environments.
The suite delivers also brokerage capabilities which are enabling cloud andservice marketplaces, and reducing service delivery times and effort.
© 2014 Clipperton Finance Limited
Selected European Players – Energy / Environment Management
43
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Energy & environment management system for Data Centers.
In-house developed hardware, firmware and software.
Integration with third party components.
Mainly active in Europe (25 FTEs).
2009
BEL
n.a.
n.a.
$13m
PMV-VinnofPartech Ventures
Big Bang Ventures
Context & Positioning Racktivity offers hardware and software solutions that enable detailed
monitoring of Data Center infrastructure in order to minimize systemfailures and downtime for end customers.
Energy management is absolutely key as energy usually accounts for the bulkof Data Center operating expenses.
The software combined with a family of PDUs and sensors measure, monitorand manage power across distributed Data Centers and gives customers fullvisibility and control of Data Centers’ energy consumption.
© 2014 Clipperton Finance Limited44
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Funding:
Investors:
Cloud infrastructure security SaaS solutions.
One of the Cloud Security Alliance founders.
Technology partner of Amazon Web Services, HP Cloud, VMware and Eucalyptus.
7 FTEs
2011
FR
€1-3m.
Undiscl.
n.a.
Context & Positioning
Result of a joint research work with Eurecom, a French research institute intelecom and network security.
Set of products and services specifically designed to help cloud infrastructureproviders and users to safely migrate to the cloud.
Increases the safety of IaaS, identifying vulnerabilities in major IaaS providersand collaborating with them.
Selected European Players – Security
© 2014 Clipperton Finance Limited45
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Provider of application provisioning and management services for Ruby on Rails.
Build PaaS from scratch on any public or private cloud vendor or your own infrastructure.
Offices in the UK and the US.
2011
UK
n.a.
n.a.
No fundingto date
Context & Positioning
Innovative solution combining the convenience of Platform-as-a-Service(PaaS) with the control and flexibility of Infrastructure-as-a-Service (IaaS).
A very fast way to market, while still allowing clients to maintain theircontrol over their infrastructure growth and expenditure for the lifetime oftheir projects.
Provided as a service and charged per server per month.
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Cloud computing hosting PaaS.
Runs all the major languages (Java, Scala, Ruby, Python, PHP, etc.).
Hosted in French Data Centersin Paris.
10 FTEs (as of Jan. 2014).
2010
FR
€1-3m
n.a.
Undiscl.
KimaVentures
Context & Positioning
Provides Cloud computing hosting, for high-performance and easy-to-manageJava/PHP/Ruby based web applications.
Each hosted application is highly secured (https protocol, backups, 24/7monitoring and support, specific virtual machine, etc.).
Designed to make developers’ life easier and let them focus on their corebusiness (easy testing, deployment and production).
Selected European Players – Dev Op Tools
© 2014 Clipperton Finance Limited
Selected European Players – Cloud Hosting Software
46
Key Figures Presentation
Founded:
Nationality:
Rev. 2011:
Rev. 2010:
Funding:
Investors:
PaaS provider for web applications development and operation.
Integrated add-on marketplace with 3rd party services.
Won ECO Award (category “Hosting”) in 2009.
Mainly active in Europe (22 FTE), currently rolling out US business.
2009
DE
n.a.
n.a.
2 Rounds
IBBCreathor Ventures
Context & Positioning
Extends the product portfolio through PaaS-enablement for hosters andtelecommunication companies (managed white-label platform).
Initially started with PHP language support in Q4 2010. The company becameone of few ‘polyglot’ player by supporting Java, Python, Ruby and NodeJSprogramming languages and others through the buildpack standard.
Offers a broad service base through it’s 3rd party add-on marketplace.
© 2014 Clipperton Finance Limited47
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Cloud computing broker-dealer.
Billing and pricing service between cloud clients and cloud providers.
Approved supplier on the UK government G-cloud program.
Clients in the EU and the US and usually have £25-50k IaaS spend per month and commit for 6 months minimum with Cloud Options.
2010
UK
n.a.
n.a.
Undiscl.
Techstars
Context & Positioning Experts in cloud billing and price risk management, transferring expertise from the
physical commodities markets to cloud computing.
Their offering is effectively a cloud service “market maker” – helping users to buycloud services on terms that suit them, whilst buying from cloud providers on termsto suit the latter.
Through its financial service “Cloud Options”, Strategic Blue involves both the buyerand the seller in the price-setting process, not just the seller. Going forward thebusiness model will begin to mirror a traditional commodity hedging businessmodel of high volume and low transaction fee margins.
Selected European Players – Cloud Brokerage
© 2014 Clipperton Finance Limited
Selected European Players – Platforms [1/2]
48
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
SaaS Cloud Management solution allowing multiple Cloud providers in a unified infrastructure.
Complete monitoring system.
Awared Best Solution 2013 by EuroCloud, at spannish level.
~20 FTEs
2012
SP
n.a.
n.a.
€200k
Ackstorm
Context & Positioning Offers easy management and control of different Cloud providers (Amazon,
Rackspace, Linode, etc.) from a single intuitive interface.
Powerful control tool capable of performing a complete monitoring of theoperation, and performing automatic maintenance actions such as increasingresources available, auto-scaling or restarting applications in case of incidents.
Clients include developers, IT managers, systems integrators and IaaS providers.
Key Figures Presentation
Founded:
Nationality:
Rev. 2011:
Rev. 2010:
Funding:
Investors:
Complete cloud business provider.
Offers public, private and hybrid clouds plus storage in own Data Centers or hosted worldwide on their network of cloud federation partners.
Operates multiple Data Centers in Berlin, Hamburg and Frankfurt am Main.
2009
DE
n.a.
n.a.
n.a.
Spin-Offfrom Internet Service
Provider Internet4You
Context & Positioning
IaaS providing self-service solution to user management, provisioning,automation services to offer a public, private or hybrid cloud solution.
Spin-Off from Germany-based Internet Service Provider Internet4You, whichalso offers managed hosting services and hybrid engineering solutions to buildtailored server solutions.
© 2014 Clipperton Finance Limited
Selected European Players – Cloud Hosting Software
49
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Storage and scalable cloud hosting platform software provider.
Self-healing platform designedto automatically recover whenData Center hardware or software fail.
SETsquared member company.
11 FTEs.
2008
UK
n.a.
n.a.
$1m
DN Capital
Context & Positioning Helps user systems automatically recover from hardware & software failures
without loss of data and deal with spikes in traffic that traditionally lead to crashes.
Offers storage and hosting platform technology that automatically detects andrecovers from Data Center outages, delivers better density of customers per server,and offers end users the ability to self-recover lost files and data.
Key technology enabler is the use of containers as a lighter alternative to VMsenabling live migration across servers without the need of arduous/ enormous datareplication (as is the case with VMs).
Key Figures Presentation
Founded:
Nationality:
Rev. 2012:
Rev. 2011:
Funding:
Investors:
Collaborative work tool in SaaS mode dedicated file sharing and project management.
Strong security policy (resilient storage infrastructure, confidentiality, accessibility, etc.).
Used by 5,000+ SMBs.
Offices in Paris and San Francisco (18 FTEs).
2010
FR
n.a.
n.a.
€680k
Business Angels
Context & Positioning
All-in-one solution for collaborative processes in business, Wimi streamlinesteamwork, allowing businesses to quickly and easily access shared documents,tasks and project calendars.
Seamless integration with today’s most popular productivity apps includingGoogle Apps, Outlook, Skype, Evernote, etc.
Automatic synchronization across all digital devices.
© 2014 Clipperton Finance Limited
Abiquo ControlCircle Skye Cloud
Adapt Flexiant Skyscape Cloud Services
Arkivum Future Facilities Strategic Blue
Cloud66 Hybrid Logic The Bunker
Opbeat
EverCloud
Ensafer
ECManagedRed Coruna
50
Selected European Players by Country
Altitude Datacenter eNovance SecludITCleverCloud JoliCloud WimiEcritel France OVH
CloudControlFluid Operations
ScaleUp TechnologiesZimory
AmplidataAWINGU
Racktivity
© 2014 Clipperton Finance Limited51
Clipperton Finance
Antoine GananciaSenior Associate, Paris
Thomas NeveuxPartner, Paris
Disclaimer:
This document has been produced by Clipperton Finance (“Clipperton”) and is communicated to you solely for your information and should not beconstrued as a solicitation or offer to buy or sell any securities or related financial instruments.
This research paper is based on information available to the public and other sources deemed reliable, while every effort has been made to guaranteeexactitude and reliability, Clipperton Finance cannot be held responsible for omissions or errors. The information and analysis accessible in thispresentation speaks to industry trends in general, and should not be construed as providing any particular recommendations or analysis for any specificcompany that is mentioned in this presentation. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on,the fairness, accuracy or completeness of the information contained herein and, accordingly, none of Clipperton’s officers or employees accepts anyliability whatsoever arising directly or indirectly from the use of this document.
Clipperton Finance Limited is authorised and regulated by the Financial Services Authority. Registered No. 523695
[email protected]@clipperton.net
Clipperton Finance Contacts:
Kulchetan SangaAssociate, London
© 2014 Clipperton Finance Limited
Outsourced Data Management: a Maturing Value Chain
52
Upstream: Emergence of a New Asset Class
Downstream: Increasingly High-Tech
Notable Transactions in Data Management Space
Focus on Selected European Players
About Clipperton Finance
Table of Content
I
II
III
IV
V
VI
© 2014 Clipperton Finance Limited
Mission Statement
Building the best European platform in tech advisory
London (2009)
Paris (2003)
Berlin (2013)
Leveraging a proven track record of 100+
transactions & seasoned technology
advisory professional's experience to
accompany our clients in their growth and
through all key steps of their financial life3 offices in Europe
5 partners
© 2014 Clipperton Finance Limited
What do we do?
Transaction Advisory for European Growth Companies, International Investors and Blue-Chips
54
Mergers & Acquisitions
StrategyFundraising
European Tech and Growth Companies
Early Stage Financing
Growth Financing
Exits (M&A, IPO, Buy-out)
Private Equity Investors
VCs – International reachincl. Corporate VCs
Growth Equity –EU and US Funds
Leveraged Funds –Buyout, Mid Market
Technology Blue Chips
Sell-side Advisory, Divesture
Buy-side ScreeningMinority
Investment
© 2014 Clipperton Finance Limited
Value Proposition
Our Solid Track Record Illustrates an Ability to Consistently Exceed Client Expectations
55
Transaction expertise
Client Expectations Clipperton Finance‘s Fit
Industry knowledge and extensive
experience
Access to investors
Team commitment and senior-level
involvement
Ability to maximize value
• Track record of delivering deals since 2003: 100+ successfully closed transactions as placement agent or M&A advisor
• Deal negotiation experience and proven process & methodology
• Cutting-edge and extensive domain expertise in TMT and Cleantech
• Strong capabilities in framing and fine-tuning strategic positioning and go-to-market
• Global network of investors and acquirers
• Strong relationships with industrial and financial sponsors, intimate understanding of expectations
• Major success stories within client base
• Strategic approach to financial transactions to position companies to maximize shareholder return
• Partner commitment from conception to closing, deep pool of experienced professionals
• Quality, not volume led – significant resource dedicated throughout
Independent and
trusted advisor
• Unbiased advice with focus on long term value creation
• Long term relationship with clients and exceptional level of client satisfaction
© 2014 Clipperton Finance Limited
Track Record
Selected High Profile M&A & Fundraising Transactions Across the Value Chain
56
M&APrivate Placement
sold to
Sole Sell-Side Advisor
July-12 $160,000,000 Apr-11 €5,300,000
Private Placement (A-round)
Digital Media Social Gaming
Acquires
Sole Buy-Side Advisor
Jan-11 € Undisclosed Dec-10 €6,000,000
Private Placement (C-round)
Telecom Equipment Mobile 3G/4G Network
Nov-10 Undisclosed
Acquired by
Sole Sell-Side Advisor
Sep-10 €7,500,000
Private Placement (B-round)
Jul-10 €13,700,000
Clean Tech Energy Storage
Dec-09 €12,000,000
Private Placement (B-round)
E-Commerce Footwear
Since May-08 €16,000,000
Private Placement (B/C-rounds)
Digital Media Media Center
Private Placement (B-round)
May-09 €12,500,000
Telecom LTE / Testing
Acquired by
Sole Sell-Side Advisor
Sep-08 $27,700,000
Private Placement (C-round)
Sep-07 $10,500,000
Telecom Mobile BSS / OSS
Acquired by
Sole Sell-Side Advisor
Sept-10 Undisclosed
Private Placement (B-round)
Clean Tech PV Operator
Nov-08 €20,000,000
Private Placement (B-round)
Feb-12 £6,300,000
eCommercePrivate Sales
Private Placement (B-round)
Oct-11 €7,500,000
Social Commerce Second hand fashion
Private Placement (B-round)
Feb-12 $12,000,000
New TV sell-side platform
Private Placement (B-round)
Mar-12 €4,000,000
Social PaymentPrivate Sales
Private Placement (A-round)
$13,500,000
Mobile AppApp Discovery
Private Placement (A-round)
eCommerceOrganic Products
Jan-13Jan-13 €3,000,000
Aug-07 €8,000,000
Private Placement (A-round)
E-Commerce e/m-ticketing
Aug-06 €7,000,000
Private Placement (A-round)
Digital Media Video Sharing
Since Jul-06 €60,000,000+
Private Placement (B-E-rounds)
Semiconductors WiMax/LTE Comm. IC
Private Placement (B-round)
$30,000,000
Connected Objects
Jul-13
Private Placement (B-round)
$20,000,000
Social Commerce
Sep-13 $90,000,000Jul-13
Joint Sell-Side Advisor
sold tosold to
Sell-Side Advisor
Jan-14 Undisclosed
Private Placement (A-round)
Feb-12 €4,000,000
AdtechVideo advertising
ADS Public Offering
Dec-13 $26,000,000
Semiconductors WiMax/LTE Comm. IC
[NYSE:SQNS]
© 2014 Clipperton Finance Limited
Experience in Advisory Services
Over 50 Years of Experience in Technology Advisory Services
57
• M&A sell-side & buy-side (20+ operations); >€700m raised in Equity (70+ operations)
• Extensive network of investors and acquirers in Europe, North America and Asia
• Team based in Paris, Berlin and London (pan-European coverage)
• 4 Partners combining 50+ years of experience with prominent Technology firms
© 2014 Clipperton Finance Limited58
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