Download - Pivot investor presentation
A Leading Multi Vendor IT Solutions Provider Reverse Take-Over of Acme Capital Corp. and up to C$10 mm Financing
Investor Presentation
January/February 2013
Proprietary & Confidential · Not for Distribution
Pivot| A Leading Multi Vendor IT Solutions Provider
PRIVATE & CONFIDENTIAL - NOT FOR REPRODUCTION OR DISSEMINATION
This management presentation is confidential and is not to be disclosed, reproduced or disseminated to any person without the prior express consent of Pivot Acquisition Corp.
(the "Company"). This management presentation is intended to provide a general overview of the Company's business plans and therefore does not purport to be complete.
This presentation does not constitute an offer to sell these securities and it is not soliciting an offer to buy these securities. It is intended that any offering of the securities will
be made in reliance upon the availability of exemptions from the applicable registration and prospectus requirements. No securities regulatory authority has expressed an
opinion about these securities and it is an offence to claim otherwise. While information in this document derived from third parties is obtained from sources which the
Company believes to be reliable, such information is not guaranteed as to its accuracy or completeness. This document may contain product names, trade names, trademarks
and service marks of the Company and of other organizations, all of which are the properties of their respective owners. No representation, warranty or undertaking, expressed
or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its affiliates or associates or their respective directors, officers,
employees, agents, shareholders or advisors as to, or in relation to, the accuracy or completeness of the information contained herein. All dollar amounts referenced herein,
unless otherwise indicated, are expressed in U.S. dollars. This management presentation supersedes and replaces any and all materials which may have been provided to
potential investors.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This management presentation contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include,
but are not limited to, statements with respect to prospective financial performance, estimated sales pipeline and backlog, estimated gross margins, estimated operating costs,
estimated market drivers, business prospects and strategy, timing of roll-out plans, the proposed capital structure of the Company, the conversion or exchange of outstanding
debentures of the Company, the ability to complete potential acquisitions on satisfactory terms, the impact of prospective acquisitions (if completed) and recently completed
acquisitions on financial performance, THE ability to complete the proposed royalty offering OR OTHER PROPOSED FINANCING OPTIONS referenced herein in a timely manner
and on acceptable terms, new markets for growth, financial position and intended use of proceeds. Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as the “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”,
“occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Although the Company
has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this
management presentation. All figures contained in this management presentation are based on the unaudited consolidated financial statements of the Company and are
subject to change. The forward-looking statements contained in this management presentation are made as of the date of this document, and the Company does not undertake
to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws. An investment in securities of the
Company is speculative and subject to a number of risks. All subsequent written and oral forward looking statements attributable to the Company or persons acting on its behalf
are expressly qualified in their entirety by this notice.
2
Pivot| A Leading Multi Vendor IT Solutions Provider
Investment Highlights
• Large and growing markets: $3.6 trillion in Global IT spending in 2012
– Focused on fast growing cloud computing, virtualization and data centre segments
• Unique service offering
– Delivers independent, agnostic, multi-vendor solutions
• Blue chip clients
– Fortune 100 clients comprise over 70% of revenues
– High client retention and proven ability to increase penetration
• Strong financial performance
– $1.5B in revenue (2012 pro-forma estimate), 15% organic growth
• Successful acquisition and integration strategy
– Consolidating industry favours larger players including Pivot; unique acquisition strategy
leverages existing sales and technical relationships in acquired companies
• Visionary board and management team
– John Sculley (Apple, Pepsi) and Mort Meyerson (EDS, Perot Systems) lead top-flight board
– Greg Gallagher, CEO, has extensive experience accelerating high-tech business growth
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Pivot| A Leading Multi Vendor IT Solutions Provider
Leading Multi Vendor IT Solutions Provider
• Delivers multi-vendor sourcing and implementation
to support, plan and provide for the IT needs of
clients through independent and innovative solutions
• 270 engineers and 190 sales people focused on
delivering to >2,000 clients
• Mission is to identify, acquire and integrate
companies in the IT solutions sector with the goal of
becoming North America’s dominant Multi Vendor
Service Provider (MVSP)
Founded 2010 by John Sculley, Shane Maine & Gord McMillan
Twelve Month Financials (Q3’12): $1.36B Revenue and $40 mm
Normalized EBITDA1
Number of employees: 679
Corporate office: Toronto
Acquisitions to date: Applied Computer Solutions (“ACS”),
ProSys Information Systems (“ProSys”), Austin Ribbon &
Computer (“ARC”) and Sigma Solutions (“Sigma”)
Pivot’s OperationsPivot’s Operations
Select ClientsSelect Clients Select VendorsSelect Vendors
Pivot HQ – Toronto Pivot Shared Services ProSysACS SigmaARC1. Normalized EBITDA defined as net income plus interest expense, income tax expense, transaction costs, FMV adjustments, depreciation and amortization, other expenses and non-recurring costs
4
Huntington Beach, CA
Sunnyvale, CA
San Diego, CA
Sacramento, CA
Atlanta, GA
Phoenix, AZFranklin, TN
Louisville, KY
Miami, FLTampa, FL
Tallahasse, FL
Edison, NJ
Dallas, TX
Houston, TX
Austin, TX
San Antonio, TX
Toronto, ON
Pivot Headquarters
New Orleans, LA
Oklahoma City, OK
Chicago, IL
Miami, FL
Edison, NJ
Seattle, WA
Pivot Shared
Services
Pivot| A Leading Multi Vendor IT Solutions Provider
Focused on Large & Growing End Markets
Source: Gartner 2012
Data Centers Market Size:
$124.6B (2016)
5 Year CAGR:
6%
Source: Gartner 2012
Cloud Computing Market Size:
$27.4B (2016)
5 Year CAGR:
40%Source: Gartner 2012
Pivot’s Core Focus IT Spending Forecast
$406 $420 $448 $478 $513 $551 $269 $281 $301 $321 $342 $365 $845 $864 $905 $952 $1,003 $1,058 $340 $377 $408 $431 $454 $478
$1,663 $1,686 $1,725 $1,766 $1,806 $1,840
$3,523 $3,628 $3,786 $3,948 $4,119 $4,293
2011 2012 2013 2014 2015 2016
Computing Hardware Software IT Services
Telecom Equipment Telecom Services All IT
External IT solution providers like Pivot are becoming increasingly important in the technology ecosystem:
resources are scarce for OEMs, and they’re focusing on core competencies such as R&D and marketing
YoY Growth (%)CAGR (%)
2011 - 2016
Computing
Hardware7.3% 3.4% 6.5% 6.8% 7.3% 7.4% 6.3%
Software 9.8% 4.3% 6.9% 6.8% 6.7% 6.7% 6.3%
IT Services 7.7% 2.3% 4.8% 5.2% 5.3% 5.5% 4.6%
Telecom
Equipment17.5% 10.8% 8.3% 5.6% 5.4% 5.3% 7.1%
Telecom Services 6.0% 1.4% 2.3% 2.4% 2.3% 1.9% 2.1%
All IT 7.9% 3.0% 4.4% 4.3% 4.3% 4.2% 4.0%
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($ m
m)
Pivot| A Leading Multi Vendor IT Solutions Provider
Fragmented Industry, Complex Problems
Security?Buy or Build?Cloud?
Bring-your-own-device? Mobile workforce?
Technology
is changing
faster than
ever
Thousands of
providers with
thousands of
solutions
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Stuck in the middle:
Medium-to-Large Enterprises
Pivot| A Leading Multi Vendor IT Solutions Provider
Industry Dynamics Favourable to Pivot’s Growth
• Current industry dynamics favour Pivot’s continued growth
– Suppliers want to deal with fewer vendors that can provide national platforms,
integrated solutions and more service offerings
– Pivot is one of few Multi-Vendor platforms with scale
• Changing IT landscape supports Pivot’s acquisition model
– Smaller vendors and service providers are less certain of their role in the sales
channel, as clients are shifting towards larger, more integrated providers
– Pivot’s access to capital and scale allows it to acquire smaller providers and
immediately integrate them into its national platform
– Pivot’s pipeline is robust and will become stronger as smaller competitors run out
of the resources to compete
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Pivot| A Leading Multi Vendor IT Solutions Provider
Gross
Margin: 5-13% 8-15% 12-22% 17-35%
EV/
EBITDA: Low Medium Medium High
Pivot: A New Type of IT Solutions Provider
High
Low High
Distributors & Direct Marketers
Large IT Services Providers
Traditional VARs
Fulfillment
Fulfillment & Implementation
Outsourcing < Services
Targeted Position
Margin and Multiple
Sca
le w
ith
Ve
nd
ors
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Pivot| A Leading Multi Vendor IT Solutions Provider
Unique Ability to Build Tailored Solutions
Able to Meet Demands of Increasingly Complex IT Environments
Client-Focused Solutions
By Applying a Client-Centric, Multi-Vendor Approach
Broad OEM
Relationships
Deep Sector
Expertise
Embedded Pre-Sales
Engineers
Post-Sales Service &
Support
Strong Knowledge of
Emerging Trends
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Cloud
Computing
Proliferation of
Mobile Devices
Virtualization
Explosion
Of Data
Security
Breaches
Network
Optimization
Pivot| A Leading Multi Vendor IT Solutions Provider
Blue-Chip Client Base
>2,000 clients70% revenues from companies
in the Fortune 100
• Long-term relationships
• Sell into multiple business units
• Significant opportunities
to grow in mid-market space
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Pivot| A Leading Multi Vendor IT Solutions Provider
Case Study: Major Telecom Client
As a trusted advisor, Pivot sells into 9 of this client’s business units
Business Need Solution Benefit
• Empower mobile
workforce with Apple iPad
solution to increase sale of
bundled offerings
• Assessment and Planning
• Procurement of best in
class vendor partners and
configuration
• Deployment and
Integration
• Lifecycle Support
• >15,000 Apple iPads
deployed
• Unified all mobile devices
used by field technicians
• Secure access to corporate
applications
• Easily document and
record services
engagements
• Application Management
and Real-time Reporting
• Policy-based Controls
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Pivot| A Leading Multi Vendor IT Solutions Provider
Case Study: Major Consumer Electronics Client
Pivot configured and delivered 55,000 servers within 15 months
Business Need Solution Benefit
• Reduce infrastructure cost
through using
‘commoditized servers’
rather than ‘specialized
servers’
• Assessment and Planning
• Procurement of best in
class vendor partners and
configuration
• Engineers designed
systems for optimal price
performance ratio
• Deployment and
Integration
• Lifecycle Support
• Performance
improvement of 11x at
33% of the average cost of
competitors’ solutions
• For Pivot: $100 mm initial
contract has generated
+$500 mm in revenue over
2 year period
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Pivot| A Leading Multi Vendor IT Solutions Provider
Key Vendors and Partners
Deep relationships and
extensive network
Global, National, Local Relationships
- Executive
- Sales
- Engineering
- Marketing
Top Level Authorizations, Certifications
- Engineering
- Sales
#1 HP ESSN* Partner
$500 mm 2011 sales for HP
Cisco Top 20,
National Account Status
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*ESSN: Enterprise Storage Servers & Networking
Pivot| A Leading Multi Vendor IT Solutions Provider 14
Successful Integration of 4 Acquisitions in 2 Years
• Year founded/acquired: 1989/December 2010
• Solutions offered: Data center solutions including
systems, storage, security, networking and
compliance
• Select major OEMs/Vendors: Oracle, HP, Fusion-io
• Year founded/acquired: 1984/August 2011
• Solutions offered: Servers, PCs & Peripherals,
Storage, Routers, Mobile and Handheld Devices
• Select major OEMs/Vendors: Panasonic,
Dell, Xerox
ACS ARC
• Year founded/acquired: 1997/January 2011
• Solutions offered: Communication, Data
Management, Security, Storage and Wireless
• Select major OEMs/Vendors: HP, Cisco, Microsoft,
VMware
• Year founded/acquired: 1992/July 2012
• Solutions offered: Cloud, Mobility, Data Center,
Managed Services
• Select major OEMs/Vendors: Cisco, HP, EMC, Oracle,
Citrix, Hitachi
ProSys Sigma
4 acquisitions totaling $1.5B in revenues in 2 years
All successfully integrated and growing
Pivot| A Leading Multi Vendor IT Solutions Provider
Proven and Successful Acquisition Model
• Pivot’s management has CEO/CFO-level relationships with multiple acquisition
candidates
• Clear acquisition target criteria
• Earn-out period requires key former owners and key personnel of acquired business to
contribute to the success of Pivot
• Retain key management as well as the best sales and technical staff to maintain key
client and vendor relationships
• Acquisition infrastructure facilitates complete back-office integration
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Pivot| A Leading Multi Vendor IT Solutions Provider
Sigma
$139.7
ARC
$67.8
ACS
$783.1
ProSys
$500.7
$38 $42
$31 $35
2011 2012E Q3 YTD
2011
Q3 YTD
2012
$1,297 $1,491
$1,004 $1,165
2011 2012E Q3 YTD
2011
Q3 YTD
2012
Pro-Forma Revenue and Normalized EBITDA
16
Note: Pro forma includes full YTD/year revenue for each operating subsidiary
(USD$ mm)
Pro-Forma Revenue Pro-Forma Normalized EBITDA1
2012 Forecast Pro-Forma Revenue
High growth rates with stable margins
(USD$ mm)
YoY Growth %
1. Normalized EBITDA defined as net income plus interest expense, income tax expense, transaction costs, FMV adjustments,
depreciation and amortization, and non-recurring costs
Note: Pro forma includes full YTD and full year EBITDA for each operating subsidiary
Note: Pro forma includes full quarter revenue for each operating subsidiary
YoY Growth %
14%11%
16%15%
Total Preliminary
Revenue: $1,491 mm
Pivot| A Leading Multi Vendor IT Solutions Provider
$20
$37 $42
$55
2010 2011 2012E 2013E
$1,016
$1,297 $1,491 $1,522
2010 2011 2012E 2013E
Forecasted Financial Performance
17
Management expects organic revenue to
increase at a compound annual growth rate
of ~15% which is largely in line with
historical trends:
• Focused on Growth Industries
Cloud computing and data center markets
expected to grow at 40% and 6% CAGRs
respectively; Pivot expects to remain
focused in these sectors
• Penetration from Existing Clients Long-
term relationships with key clients can
lead to further penetration within
multiple business units
• Expansion of Services Business
Focus on enhancing managed services
offering while driving increased margins
(US$ mm)
(US$ mm)
Pro-Forma Revenue Key Drivers for Expected Growth
Pro-Forma Normalized EBITDA1
Growth expected to continue on the back of several key drivers
Note: Pro forma includes full year revenue for each operating subsidiary
1. Normalized EBITDA defined as net income plus interest expense, income tax expense, transaction costs, FMV adjustments,
depreciation and amortization, and non-recurring costs
Note: Pro forma includes full year EBITDA for each operating subsidiary
Pivot| A Leading Multi Vendor IT Solutions Provider
Growth Objective: $3B in Revenue in 3 Years
• Leverage Multi-Vendor Strategy – Become truly differentiated IT solutions provider by
employing integrated hardware solutions with best-in-class OEM partners
– Utilize best practices and sell across operating groups
– Focus on Technology, Telecom, Healthcare and Financial
– Enhance managed services, staff augmentation
– Use national scale to service enterprise companies locally
• Use Platform to Grow Sales Organically – Grow revenues from existing clients, attract
new clients, continue to innovate and deliver new solutions
• Pursue Strategic Acquisitions – Identify, acquire and integrate reseller and IT services
sector companies that are: financeable, growing, innovative and aligned with our
business strategy
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Pivot| A Leading Multi Vendor IT Solutions Provider 19
Pivot Team: Experienced and Committed to Achieving Success
• Managing Director at Wells Fargo Capital Finance
• Track record of accelerating high-tech business growth, channel
financing expertise, deep industry relationships and M&A
experience as an attorney
• Formerly CFO Pivot Operating Companies with considerable IT
VAR industry expertise
• Executive with over 20 years senior management experience
in private and public companies
Greg Gallagher>> CEO, Director Warren Barnes>> CFO
• Previously served as CEO of PepsiCo Foods International, Pepsi-Cola
Co. and Apple Inc.
• Selected as "Marketing CEO of the Decade" and
"CEO of the Year"
• Former Chairman and CEO of Perot Systems Corporation,
former President and Vice Chairman of Electronic Data
Systems, Inc. (EDS)
• Elected three times by the Wall Street Transcript as outstanding
Chief Executive Officer
John Sculley>> Co-Founder, Executive Chairman Morton Meyerson>> Director
Shane MaineCo-Founder & Director
Gord McMillanCo-Founder
John AndersonDirector
Stephen MooreDirector
David BeckDirector
Technology industry
entrepreneur and Co-
Founder and Managing
Partner of Inflexionpoint
Acquisition Corp.
Experienced financial
services industry
entrepreneur who co-
founded firms that
managed assets in excess
of $2B
Experienced financial
executive and director with
a number of private and
public companies
Managing Director at
Newhaven Asset
Management
Experienced investment
banking executive with
RBC Capital, GMP and NCP
Northland
Pivot| A Leading Multi Vendor IT Solutions Provider
Summary
• Large and growing markets: $3.6 trillion in Global IT spending in 2012
• Unique service offering
• Blue chip clients
• Strong financial performance
• Successful acquisition and integration strategy
• Visionary board and management team
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Pivot| A Leading Multi Vendor IT Solutions Provider
RTO Financing Summary Term Sheet
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Issuer Pivot Acquisition Corp. (or the “Company”)
Offering Size Minimum of C$5 mm; Maximum of C$10 mm
Offering Treasury offering of subscription receipts
Offering Price C$1.00 per subscription receipt
Use of Proceeds The net proceeds received from the Offering will be used for additional working capital
Exchange / Ticker TSX Venture Exchange (initial listing) / PTG (reserved)
Annual Dividend Yield Annual dividend of $0.02 (to be paid quarterly at $0.005 per share), for annual yield of 2%
Closing Date On or about February 12th, 2013
Agents Mackie Research Capital Corporation as lead agent, and including Macquarie Private Wealth Inc.
Refer to separate Term Sheet for complete details of the Offering
Pivot| A Leading Multi Vendor IT Solutions Provider
Share Capitalization Post-RTO
22
Post-RTO
Price C$1.00
Pivot Shares O/S (mm)(1)
50.4
Series A Preferred Shares(2)
72.8
RTO Financing Shares(3)
10.0
Convertible Debenture Shares 12.8
Shares to Acme Capital 1.0
Total Shares O/S (mm) 147.0
Market Cap ($mm) C$147.0
(1) Assumes 15% of 37.5 mm founders shares o/s escrowed until subsequent financing completed.
(2) Assumes C$36.2 mm of outstanding convertible debentures exchange into series A preferred
shares and all remaining outstanding convertible debentures convert at 50% of RTO price. Includes
accrued interest.
(3) Assumes C$10 mm RTO at $1.00 per subscription receipt.
Pivot Acquisition Corp.
Pivot| A Leading Multi Vendor IT Solutions Provider
Pivot’s Outstanding Convertible Debentures
• Pivot currently has C$42.6 mm of 2-year, 12% coupon, convertible debentures outstanding,
maturing April 14, 2013
• The convertible debentures will either i) be converted into common shares of Pivot (at a 50%
discount to the RTO price) upon completion of the RTO, pursuant to the Indenture, or ii) Debenture
Holders will have the option (prior to the closing of the RTO), to exchange into Series A Preferred
Shares of Pivot
• Key features of the Series A Preferred Shares include:
– Receive two Preferred Shares for every dollar of accrued and unpaid interest and the principal amount of the Debentures
– At any time following closing of the RTO, Preferred Shareholders will have the option to convert into “Resulting Issuer” common
shares at a ratio of 1-to-1 (1 common share per 1 Preferred Share)
– In the event that Pivot successfully raises a minimum of C$75 mm contemplated by the potential royalty financing, or any other
form of financing, Preferred Shareholders will have the option to sell (put) their shares to Pivot, upon 30 days’ notice, for an
amount equal to C$0.60 per share (i.e. a 20% premium to ½ the RTO price)
– After June 30, 2013, Pivot shall have the right to force conversion of any and all outstanding Preferred Shares into “Resulting
Issuer” common shares at a ratio of 1-to-1 (1 common share per 1 Preferred Share)
– The Preferred Shares will have a coupon of 12%. The Preferred Shares will be non-voting shares.
• Subsequent to the RTO, Pivot intends to explore a number of financing options to fund future
acquisitions, reduce debt and recapitalize its balance sheet
23
Pivot| A Leading Multi Vendor IT Solutions Provider
Potential Future Financing (Post-RTO)
• While there is no guarantee as to the success of any contemplated future financing
option, chief among future financing considerations is a royalty transaction
– Pivot will explore the potential of creating a separate royalty company (“Pivot Royalties Corp.”)
– In that potential financing scenario, Pivot Royalties Corp. would propose to raise equity to acquire a revenue
stream from Pivot
– Shares of Pivot Royalties Corp. would be offered at a discount to its peer group, and as Pivot focuses on new
acquisition targets, it could potentially source funds from Pivot Royalties Corp.
• The potential implications for Pivot of a successful royalty transaction include:*
– > $1.5 bn in Revenues and $43.5 mm of net EBITDA forecast for 2013 (net of royalty to Pivot Royalties Corp.)
– A market cap of C$80 mm
– A strong pro-forma cash balance of approximately C$63.4 mm
– Pro-forma net debt reduced to approximately C$78.3 mm
– Enterprise value of C$163 mm
– Existing management well incentivized to continue to grow the business
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*Assumes C$36.2 mm (85%) of convertible debentures exchange into series A preferred shares and that $C75 mm royalty financing and $C10 mm RTO are completed.
Pivot| A Leading Multi Vendor IT Solutions Provider
Comparable Companies Analysis
25
24-Jan-13
Share Market Ent.
Company Price Cap. Value LTM 2012E 2013E LTM 2012E 2013E 11A/12E 12E/13E 11A/12E 12E/13E
($) ($MM) ($MM) (x) (x) (x) (%) (%) (%) (%) (%) (%) (%)
VARs/Distributors
Avnet, Inc. NYSE:AVT $34.40 $4,721 $5,904 6.0x 5.4x 7.2x 3.9% 4.2% 3.3% -1.5% -6.4% NA -25.3%
Arrow Electronics, Inc. NYSE:ARW $39.22 $4,156 $5,754 6.1x 6.5x 6.3x 4.6% 4.4% 4.4% -5.0% 1.8% -15.5% 3.3%
Ingram Micro Inc. NYSE:IM $18.37 $2,758 $2,373 4.3x 4.5x 3.8x 1.5% 1.4% 1.5% 2.6% 10.6% 9.0% 19.0%
Tech Data Corp. Nasdaq:TECD $49.45 $1,867 $1,772 4.7x 4.3x 4.6x 1.5% 1.6% 1.5% 8.9% -6.0% NA -7.2%
SYNNEX Corp. NYSE:SNX $36.40 $1,359 $1,471 5.3x 5.4x 5.1x 2.7% 2.6% 2.7% -1.3% 4.0% 0.9% 7.0%
Insight Enterprises Inc. Nasdaq:NSIT $19.58 $872 $845 4.2x 4.1x 4.0x 3.8% 3.9% 3.9% 0.0% 1.8% 6.7% 4.1%
PC Connection, Inc. Nasdaq:PCCC $12.33 $327 $275 4.6x 4.6x 4.2x 2.8% 2.8% 2.9% 2.5% 2.5% 4.3% 7.8%
Softchoice Corporation TSX:SO $12.05 $237 $185 3.8x 3.9x 3.3x 4.8% 4.5% 4.9% 6.2% 8.0% -5.9% 16.0%
Average 4.9x 4.8x 4.8x 3.2% 3.2% 3.2% 1.6% 2.0% -0.1% 3.1%
Diversified Technology Companies
iGATE Corporation Nasdaq:IGTE $17.73 $1,020 $2,481 9.7x 9.4x 9.0x 23.9% 24.5% 24.2% 37.8% 6.6% NA 5.5%
Web.com Group, Inc. Nasdaq:WWWW $15.99 $754 $1,424 42.1x 9.9x 8.8x 9.2% 30.3% 31.1% 139.1% 9.8% 183.7% 12.9%
FARO Technologies Inc. Nasdaq:FARO $32.73 $555 $475 12.0x 13.1x 10.2x 14.7% 13.8% 16.1% 3.2% 10.6% -8.9% 28.5%
Ellie Mae, Inc. NYSE:ELLI $23.13 $594 $503 22.8x 17.0x 13.4x 24.4% 29.6% 30.1% 80.0% 24.4% 497.1% 26.7%
SPS Commerce, Inc. Nasdaq:SPSC $37.23 $547 $477 79.8x 55.0x 37.8x 8.5% 11.3% 13.0% 32.0% 27.0% 63.3% 45.6%
Tangoe, Inc. Nasdaq:TNGO $14.84 $562 $535 50.2x 24.3x 17.1x 7.6% 14.4% 16.4% 45.8% 24.7% 78.0% 42.0%
The Active Network, Inc. NYSE:ACTV $5.52 $334 $259 27.5x 5.8x 5.1x 2.3% 10.6% 10.7% 24.6% 13.0% 17.2% 13.9%
PDF Solutions Inc. Nasdaq:PDFS $13.84 $403 $352 19.7x 13.3x 8.8x 21.5% 29.8% 38.0% 33.0% 18.4% 156.3% 51.1%
Guidance Software, Inc. Nasdaq:GUID $12.85 $323 $293 39.5x 21.5x 15.6x 6.0% 10.5% 12.7% 24.8% 13.1% NA 37.7%
Average 33.7x 18.8x 14.0x 13.1% 19.4% 21.4% 46.7% 16.4% 141.0% 29.3%
Overall Average 20.1x 12.2x 9.7x 8.4% 11.8% 12.8% 25.5% 9.6% 75.9% 17.0%
$1.00 $147 $257 7.0x 6.2x 4.7x 2.8% 2.8% 3.6% 15.1% 2.0% 13.9% 31.0%
$1.00 $80 $163 4.4x 3.9x 3.8x 2.8% 2.8% 2.9% 15.1% 2.0% 13.9% 4.1%
Source: S&P Capital IQ, Bloomberg
1 Post-RTO financing of C$10 mm. Assumes C$36.2 mm of convertible debentures exchanged into series A preferred shares.
2 Assumes a royalty financing of C$75 mm, C$36.2 mm of convertible debentures exchanged into series A preferred shares, and a 1% revenue royalty.
Note: Revenue growth shown for Pivot is organic revenue growth, without acquisitions.
Pivot Technology Solutions Inc.(2)
- Post-RTO & Royalty
Pivot Technology Solutions Inc.(1)
- Post-RTO
Comparable Companies
EV/EBITDA EBITDA Margin Revenue Growth EBITDA Growth
Pivot| A Leading Multi Vendor IT Solutions Provider
Contact Information
26
• 720 465 9675
• 714 861 2296
Greg Gallagher>> Chief Executive Officer Warren Barnes >> Chief Financial Officer