european technolo gy update pgyp - harris williams & co

European Technology Update

Member FINRA/SIPC

p gy p9 August 2012

Thierry MonjauzeThierry MonjauzeManaging Director63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Francois MorinDirector63 Brook Street

www.harriswilliams.comThis report has been prepared by Harris Williams & Co. Ltd a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and

regulated by the Financial Services Authority (FRN #540892). Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Recent Developments

VMware acquired Nicira, the provider of software defined networking and network virtualization for open source initiatives, for approximately $1.3 billionBain Capital Partners purchased a $1 billion stake in Genpact, the global leader in business process management and technology services, from General Atlantic and Oak Hill Capital Partners Synopsys acquired SpringSoft, the global supplier of specialized design software, for $406 millionA l i d A h T h US b d id f i id i d h l

Company Specific

News

Apple acquired AuthenTec, the US-based provider of security, identity management and touch control technologies for personal computers and wireless devices, for approximately $360 millionPearson acquired Author Solutions, one of the world's leading providers of professional electronic self-publishing services, from Bertram Capital for $116 million1st Auto Transport Directory, the web-based network for arranging vehicle transportation and shipping, was acquired by DealerTrack for $74 million Mobeus Equity Partners acquired Tessella, the international provider of technology and consulting services, in a management buy-out for £18 millionQurius, the IT solutions provider in the areas of design, architecture, infrastructure, deployment and systems Q , p g , , , p y ymanagement of Microsoft-based systems, was acquired by Prodware for €18.5 million Francisco Partners completed the acquisition of Kewill, the global trade and logistics software providerOne of the world's leading independent digital agencies AKQA Holdings was acquired by WPPXerox acquired WDS, the provider of technical support and related consulting services to the world’s largest wireless telecommunication brandsWeb-based business software Start-Up Box raised $125 million in a round of funding led by General Atlantic Software-coding start-up GitHub raised $100 million in a round of funding led by Andreessen HorowitzJustFab, the fashion styling service and contemporary fashion brand, raised $76 million from Rho VenturesSi D G th UK b d d i th i i f i t t d d d t iSix Degrees Group, the UK-based company engaged in the provision of integrated managed data services,raised £8 million in new funding from Penta CapitalPalo Alto Networks’ share price increased 26% in its first day of trading on the NYSE closing at $53, up from its IPO price of $42Gigamon, the US-based IT company, filed for an IPO looking to raise $100 millionXoom, the US-based online money transfer service, is preparing for an IPO and has retained Goldman Sachs as lead underwriterThe privately owned Czech anti-virus software company Avast Software has withdrawn its IPO filing

Global mobile entertainment revenues are expected to be $65 billion by 2016, up from $25 billion this year, according to Juniper ResearchMobile tech firms have generated $6.5 billion in IPO and M&A activity for the first six months of this year, according to Rutberg & Co.Global PC shipments appear to be stagnating, with both IDC and Gartner claiming that the market dipped 0.1% y-o-y in Q2 2012

Industry Trends

y o y in Q2 2012E-books made up 15% of all trade book sales in the US during 2011, up from 6% in 2010, according to the Association of American PublishersSmartphone app downloads will surpass 36 billion worldwide this year, according to ABI ResearchSpend on technology products and services such as mobile phones, computing, entertainment, media and smart devices will reach $2.1 trillion this year, with that figure set to rise to $2.7 trillion in 2016, according to GartnerGlobal online ad spend is set to continue its remarkable growth, with eMarketer forecasting that spend will increase 21.3% from $88.47 billion in 2011 to $107.33 billion in 2012

Source: Various industry news outlets. 1

Public Market Trading Statistics

Stock Performance

Last 30 Days

g

6%

8%

10%

(6%)

(4%)

(2%)

0%

2%

4%

02 Jul 07 Jul 12 Jul 17 Jul 22 Jul 27 Jul 01 Aug

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

6.4%2.4%1.5%

(0.3% )(3.0% )

Last Twelve Months

(20%)

(10%)

0%

10%

20%

10.2%1.1%

(6.9% )(11.0% )(13.3% )

Comparable Trading

Sources: Capital IQ, 3 August 2012; Brokers’ reports.

(40%)

(30%)

Aug 2011 Nov 2011 Feb 2012 May 2012 Aug 2012

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

CY2012EEBITDA Margin Growth CY2012E CY2013E CY2012E CY2013E CY2012E CY2013E

P / EEV / Revenue EV / EBITDA

Summary Software and IT ServicesEnterprise Applications 14.8% 12.5% 2.2x 1.9x 6.7x 5.9x 14.6x 11.6xEuropean Large Cap Software 31.6% 5.4% 3.3x 3.1x 10.5x 9.5x 17.2x 15.0xFinancial Software 22.2% 2.7% 2.0x 1.9x 8.2x 7.4x 15.6x 13.8xHealthcare Software 22.0% 9.9% 2.2x 2.0x 8.8x 7.9x 16.2x 14.4xLarge Cap IT Services 13.6% 8.9% 1.0x 0.9x 6.8x 6.3x 15.2x 11.8xMid Cap IT Services 8.8% 3.7% 0.5x 0.5x 5.3x 4.8x 9.1x 7.3xOffshore IT Services 23.1% 23.4% 2.2x 2.0x 9.2x 8.5x 14.0x 13.0xSecurity Software 35.6% 10.6% 3.3x 3.0x 8.1x 7.3x 13.0x 11.3x

CommunicationsDigital Broadband 11.8% (2.9%) 0.5x 0.5x 4.5x 3.9x 11.1x 8.6xDiversified Communication Equipment 7.8% (3.9%) 0.8x 0.7x 10.0x 6.4x 15.7x 14.2xMobile Content / Solutions Providers 16.9% (4.3%) 1.6x 1.4x 8.5x 7.0x 28.7x 21.0xMobile Infrastructure Software 16.6% 6.1% 2.2x 2.0x 7.8x 10.4x 14.9x 12.3x

Internet and Digital MediaChinese Internet Leaders 18.6% 194.0% 3.0x 2.2x 7.3x 10.2x 15.7x 14.5xOnline Classifieds 37.6% 12.5% 5.5x 4.6x 9.3x 8.0x 18.6x 14.3xContent Providers / Communities 18.9% 22.2% 3.4x 2.6x 8.2x 7.1x 20.6x 16.6xEcommerce 20.0% 22.4% 2.9x 2.4x 14.5x 10.9x 32.3x 24.9x

2

Global Internet Leaders 38.8% 28.0% 5.0x 3.9x 14.2x 11.1x 21.4x 17.0xInteractive Entertainment 14.9% (8.3%) 0.8x 0.7x 4.2x 4.6x 20.3x 11.4xIntermediation and Comparison 12.5% 28.3% 3.8x 2.9x 18.0x 11.5x 21.8x 16.5xOnline Gambling 19.2% 4.9% 1.1x 1.1x 5.8x 5.4x 13.3x 9.5xOnline Marketing 15.4% 7.4% 1.6x 1.4x 8.7x 7.5x 15.7x 11.5xOnline Travel 24.2% 13.4% 2.4x 2.1x 9.0x 7.8x 17.1x 13.9x

Software and IT Services

10%

Last 30 Days Performance

European Large Cap Software 7.9%Large Cap IT Services 5.6%Security Software 4.5%Enterprise Applications 2.8%H lth S ft 1 4%

0%

5%

Healthcare Software 1.4%Mid Cap IT Services 1.3%Offshore IT Services (0.9% )Financial Software (3.2% )

(10%)

(5%)

02 Jul 08 Jul 14 Jul 20 Jul 26 Jul 01 AugEuropean Large Cap Software Financial SoftwareEnterprise Applications Healthcare SoftwareEnterprise Applications Healthcare SoftwareSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Last Twelve Months Performance

20%

European Large Cap Software 12.7%Healthcare Software (4.9% )Financial Software (7.5% )Large Cap IT Services (7.8% )Enterprise Applications (13.6% )Security Software (16 8% )

(10%)

0%

10%

20% Security Software (16.8% )Mid Cap IT Services (19.6% )Offshore IT Services (22.1% )

(40%)

(30%)

(20%)


Source: Capital IQ, 3 August 2012.3

European Large Cap Software Financial SoftwareEnterprise Applications Healthcare SoftwareSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Software and IT Services(Continued)(Continued)

Market Enterprise CY2012ECap ($m) Value ($m) EBITDA Margin Growth CY2012E CY2013E CY2012E CY2013E CY2012E CY2013E

European Large Cap SoftwareSAP 77,220 77,700 34.2% 13.4% 3.9x 3.5x 11.4x 9.9x 17.0x 14.8xDassault Systemes 12,422 10,764 32.5% 17.4% 4.2x 3.9x 13.1x 11.8x 24.2x 21.2xSage 5,743 5,553 28.6% 2.4% 2.6x 2.5x 9.0x 8.6x 14.3x 13.1xSoftware AG 2,889 2,908 28.0% (2.6%) 2.2x 2.1x 7.8x 7.1x 12.7x 11.4x

EV / Revenue EV / EBITDA P / E

Aveva 1,934 1,654 32.9% 15.3% 4.9x 4.4x 14.9x 13.0x 25.1x 22.0xMicro Focus 1,393 1,364 40.2% (0.1%) 3.1x 3.2x 7.8x 7.6x 11.2x 10.3xTemenos 911 1,071 25.1% (7.9%) 2.4x 2.3x 9.6x 8.2x 15.7x 12.5x

Mean 31.6% 5.4% 3.3x 3.1x 10.5x 9.5x 17.2x 15.0xMedian 32.5% 2.4% 3.1x 3.2x 9.6x 8.6x 15.7x 13.1x

Financial SoftwareIntuit 17,347 16,324 37.4% 8.2% 3.7x 3.4x 10.0x 9.2x 19.3x 17.1xTemenos 911 1,071 25.1% (7.9%) 2.4x 2.3x 9.6x 8.2x 15.7x 12.5xFidessa 803 724 21.7% 1.3% 1.6x 1.6x 7.5x 7.0x 18.5x 16.3xSimCorp 699 634 25.3% 8.0% 2.5x 2.2x 9.7x 8.7x 16.2x 14.0xInnovation 280 239 12.7% 12.9% 0.7x 0.7x 5.8x 5.0x 15.5x 12.8xLinedata 162 160 22.7% 5.0% 0.9x 0.9x 3.9x 3.7x 9.1x 7.9xMicrogen 155 113 13.2% (4.7%) 2.0x 1.9x 8.7x 7.9x 13.9x 13.4xStatPro 89 95 19.3% (1.5%) 2.0x 1.9x 10.1x 9.5x 17.1x 16.0x


Enterprise ApplicationsGuidewire Software 1,417 1,216 12.1% 22.3% 4.9x 4.1x 40.6x 26.2x NM NMJive Software 1,157 1,004 (15.6%) 49.2% 8.9x 6.5x NM NM NM NMSDL 838 729 17.6% 18.5% 1.7x 1.6x 9.8x 8.8x 16.6x 14.8xUnit 4 697 856 20.1% 3.3% 1.5x 1.4x 7.3x 6.5x 17.7x 13.2xExact 468 407 20.1% 1.2% 1.5x 1.5x 7.4x 6.1x 15.4x 11.1xIFS 416 358 13.6% 6.2% 0.9x 0.8x 6.5x 5.5x 17.0x 13.3xKofax 373 311 18.0% 8.8% 1.2x 1.1x 6.4x 5.9x 14.0x 12.7xF-Secure 297 266 20.8% 9.6% 1.4x 1.2x 6.5x 5.8x 14.1x 11.3xCegid 149 228 23.9% 3.0% 0.7x 0.7x 2.9x 2.8x 7.7x 5.0x


Healthcare SoftwareMcKesson 20,634 22,201 2.5% 4.7% 0.2x 0.2x 7.1x 6.7x 12.3x 11.2xCerner 12,612 11,809 31.5% 20.5% 4.5x 4.0x 14.3x 12.2x 31.4x 26.5xAllscripts Healthcare Solutions 1,754 1,924 23.9% 3.3% 1.3x 1.2x 5.4x 4.8x 12.5x 10.6xCompuGroup 721 992 21.9% 13.9% 1.8x 1.7x 8.2x 7.4x 12.3x 13.8xEmis 622 614 34.5% 17.9% 4.6x 4.0x 13.2x 11.7x 22.3x 19.5xCegedim 328 900 16.0% (0.1%) 0.8x 0.8x 4.9x 4.5x 8.5x 5.6xAdvanced Computer Software 319 321 23.7% 8.8% 1.9x 1.8x 8.2x 7.7x 14.4x 13.4x


4Sources: Capital IQ, 3 August 2012; Brokers’ reports.

Software and IT Services(Continued)(Continued)


Security SoftwareSymantec 11,810 10,827 29.7% 0.1% 1.6x 1.6x 5.4x 4.9x 10.5x 9.7xCheck Point 10,115 8,743 59.2% 9.0% 6.4x 5.9x 10.9x 10.1x 15.6x 14.1xAVG Technologies 598 671 28.7% 24.8% 2.0x 1.8x 6.9x 6.0x 9.3x 8.4xF-Secure 297 266 20.8% 9.6% 1.4x 1.2x 6.5x 5.8x 14.1x 11.3x

P / EEV / Revenue EV / EBITDA

F Secure 297 266 20.8% 9.6% 1.4x 1.2x 6.5x 5.8x 14.1x 11.3x


Large Cap IT ServicesAccenture 38,310 33,167 15.9% 6.1% 1.2x 1.1x 7.5x 7.0x 15.5x 14.3xCapita Group 7,551 9,949 16.8% 12.8% 1.9x 1.8x 11.5x 10.7x 14.1x 13.1xCGI 6,141 6,789 19.4% 2.4% 1.6x 1.5x 8.0x 7.5x 14.5x 12.8xCap Gemini 5,840 5,872 9.3% 5.8% 0.5x 0.5x 5.0x 4.7x 11.6x 10.7xAtos Origin 5,755 5,669 10.2% 29.4% 0.5x 0.5x 5.1x 4.6x 12.3x 10.4xComputer Sciences 3,856 5,558 9.7% (3.0%) 0.4x 0.4x 3.6x 3.2x 23.3x 9.6x


Mid Cap IT ServicesSplunk 2,702 2,436 (3.1%) 46.5% 13.7x 10.3x NM NM NM NMLogica 2,646 3,145 7.9% (0.8%) 0.5x 0.5x 6.6x 6.2x 9.8x 9.0xIndra Sistemas 1,419 2,173 9.7% 8.8% 0.6x 0.6x 6.2x 5.6x 8.5x 7.1xTieto 1,216 1,320 10.8% 0.6% 0.6x 0.6x 5.4x 4.7x 16.2x 10.2xSopra 547 607 10.0% 10.8% 0.4x 0.4x 4.2x 3.9x 7.1x 6.4xGroupe Steria 385 656 7.8% 10.0% 0.3x 0.3x 3.7x 3.3x 5.4x 4.5xGFI Informatique 178 303 6.6% (7.4%) 0.4x 0.4x 5.9x 5.3x 7.4x 6.4x


Offshore IT ServicesTata 43,455 41,900 29.2% 28.9% 4.0x 3.6x 13.6x 12.4x 18.8x 16.8xInfosys 22,642 18,955 30.9% 21.2% 2.7x 2.4x 8.7x 8.2x 13.4x 12.5xCognizant 17,618 15,127 20.4% 19.9% 2.1x 1.8x 10.1x 8.6x 17.2x 14.7xWipro 15,214 14,048 19.5% 19.3% 1.8x 1.7x 9.5x 8.8x 13.6x 13.2xHCL 6,493 6,381 19.5% 30.8% 1.5x 1.4x 7.7x 7.4x 12.5x 11.6xSatyam 1,877 1,362 19.0% 20.4% 1.0x 0.9x 5.4x 5.5x 8.2x 9.4x



Communications


Digital Broadband 2.6%Mobile Infrastructure Software (2.3% )Mobile Content / Solutions Providers (7.1% )Diversified Communication Equipment (9.0% )10%

(5%)

0%

5%

(20%)

(15%)

(10%)

02 Jul 08 Jul 14 Jul 20 Jul 26 Jul 01 Aug

Digital Broadband Diversified Communication Equipment

60%


Mobile Content / Solutions Providers (8.1% )Mobile Infrastructure Software (10.5% )Digital Broadband (12.9% )Diversified Communication Equipment (32.8% )

Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers

0%

10%

20%

30%

40%

50%

(50%)

(40%)

(30%)

(20%)

(10%)


Digital Broadband Diversified Communication EquipmentDigital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers

6Source: Capital IQ, 3 August 2012.

Communications(C ti d)(Continued)


Digital BroadbandLogitech 1,286 934 8.4% (3.1%) 0.4x 0.4x 4.9x 4.1x 15.4x 10.6xTomTom 901 1,136 15.3% (13.3%) 0.8x 0.9x 5.4x 5.2x 8.5x 8.1xPace 770 1,013 9.0% (1.6%) 0.5x 0.4x 5.0x 4.4x 8.7x 8.0xTechnicolor 547 1 814 13 9% 1 8% 0 4x 0 4x 3 0x 2 8x 5 5x 4 0x

P / EEV / EBITDAEV / Revenue

Technicolor 547 1,814 13.9% 1.8% 0.4x 0.4x 3.0x 2.8x 5.5x 4.0xKudelski 462 711 11.0% (6.2%) 0.8x 0.8x 7.4x 6.0x 18.3x 12.0xParrot 368 261 16.3% 7.9% 0.8x 0.7x 4.7x 4.2x 12.1x 11.0xAdvanced Digital Broadcast 63 36 8.6% (5.8%) 0.1x 0.1x 1.0x 0.8x 9.4x 6.3x

Mean 11.8% (2.9%) 0.5x 0.5x 4.5x 3.9x 11.1x 8.6xMedian 11.0% (3.1%) 0.5x 0.4x 4.9x 4.2x 9.4x 8.1x

Diversified Communication EquipmentLM Ericsson Telephone 30,785 25,751 12.2% 0.2% 0.8x 0.7x 6.2x 5.5x 16.0x 11.7xNokia 8,983 5,020 (1.3%) (22.2%) 0.1x 0.1x NM 3.5x NM NMAlcatel-Lucent 2,617 3,501 5.4% (7.2%) 0.2x 0.2x 3.6x 2.6x NM 14.4xCIENA 1,620 2,427 6.2% 12.1% 1.3x 1.1x 20.3x 13.0x NM 19.1xADTRAN 1 322 1 162 16 5% (2 6%) 1 7x 1 5x 10 1x 7 6x 15 3x 11 3xADTRAN 1,322 1,162 16.5% (2.6%) 1.7x 1.5x 10.1x 7.6x 15.3x 11.3x

Mean 7.8% (3.9%) 0.8x 0.7x 10.0x 6.4x 15.7x 14.2xMedian 6.2% (2.6%) 0.8x 0.7x 8.1x 5.5x 15.7x 13.1x

Mobile Infrastructure SoftwareQUALCOMM 102,610 90,589 40.6% 20.4% 4.6x 4.1x 11.5x 10.1x 16.4x 14.2xVeriSign 7,139 6,399 60.4% 13.3% 7.3x 6.5x 12.1x 10.6x 24.3x 20.4xAmdocs 5,161 4,267 20.8% 1.8% 1.3x 1.2x 6.3x 6.2x 11.1x 10.3xComverse Technology 1,192 1,424 16.3% 2.9% 0.9x 0.8x 5.3x 4.9x 14.3x 9.5xSynchronoss Technologies 850 759 31.0% 20.1% 2.7x 2.2x 8.9x 7.4x 20.0x 16.7xSonus Networks 473 153 0.6% 8.3% 0.5x 0.5x NM 45.0x NM NMTeleCommunication Systems 81 155 9.6% 12.0% 0.3x 0.3x 3.4x 2.9x 5.3x 3.8xRedknee Solutions 77 64 14 3% 0 3% 1 1x NA 7 3x 6 0x 12 8x 11 5xRedknee Solutions 77 64 14.3% 0.3% 1.1x NA 7.3x 6.0x 12.8x 11.5xSmith Micro Software 63 32 (44.0%) (23.9%) 0.7x 0.5x NM 0.7x NM NM


Mobile Content / Solutions ProvidersOpera Software 825 764 29.7% 39.6% 3.7x 2.9x 12.4x 8.9x 22.0x 14.8xGameLoft 466 420 18.0% 23.6% 1.7x 1.5x 9.3x 7.4x 21.0x 16.6xBuongiorno 273 332 12.4% 15.7% 1.0x 0.9x 8.1x 7.1x 38.4x 22.2xDanal 91 137 11.5% (48.0%) 0.7x 0.7x 6.3x 5.9x 33.2x 25.4xDada 47 79 12.8% (52.1%) 0.8x 0.7x 6.1x 5.5x NM 26.2x

Mean 16.9% (4.3%) 1.6x 1.4x 8.5x 7.0x 28.7x 21.0x( )Median 12.8% 15.7% 1.0x 0.9x 8.1x 7.1x 27.6x 22.2x


Internet and Digital Media

20%


g

Online Travel 4.9%Global Internet Leaders 4.8%Online Classifieds 4.2%Chinese Internet Leaders 1.5%Content Providers / Communities 1.1%Ecommerce 0.4%Online Marketing (0.1% )

10%

Online Marketing (0.1% )Interactive Entertainment (3.7% )Online Gambling (4.1% )Intermediation and Comparison (12.5% )

(10%)

0%

28 Jun 04 Jul 10 Jul 16 Jul 22 Jul 28 Jul

Global Internet Leaders EcommerceO li T l O li M k tiOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment


Global Internet Leaders 18.6%Intermediation and Comparison 13.6%Online Gambling 11.0%Online Travel 1.2%50%Online Classifieds (13.4% )Online Marketing (19.1% )Content Providers / Communities (21.9% )Chinese Internet Leaders (22.5% )Ecommerce (23.8% )Interactive Entertainment (36.5% )

0%

10%

20%

30%

40%

50%

(50%)

(40%)

(30%)

(20%)

(10%)


Global Internet Leaders Ecommerce

8Source: Capital IQ, 3 August 2012.

Global Internet Leaders EcommerceOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

Internet and Digital Media(Continued)(Continued)


Global Internet LeadersApple 577,161 549,507 37.7% 35.9% 3.4x 2.8x 8.9x 7.9x 13.5x 11.6xMicrosoft 249,406 200,137 42.5% 4.8% 2.6x 2.4x 6.2x 5.6x 10.5x 9.2xGoogle 209,736 176,135 38.9% 31.2% 3.5x 2.8x 9.0x 7.6x 15.1x 12.9xA 106 222 101 252 5 1% 28 4% 1 6 1 3 31 5 22 5 NM NM


Amazon 106,222 101,252 5.1% 28.4% 1.6x 1.3x 31.5x 22.5x NM NMeBay 57,346 53,674 32.9% 21.0% 3.8x 3.3x 11.6x 10.1x 18.9x 16.2xFacebook 45,183 35,701 53.9% 32.1% 7.3x 5.6x 13.5x 10.1x 44.2x 33.6xBaidu 43,619 41,355 56.5% 58.1% 11.6x 8.2x 20.6x 15.0x 26.6x 19.8xYahoo! 19,528 17,791 36.6% 0.5% 4.0x 3.9x 11.0x 10.3x 16.5x 14.3xYandex 6,682 6,314 44.8% 39.8% 6.8x 5.0x 15.2x 11.2x 25.7x 18.3x


EcommerceAmazon 106,222 101,252 5.1% 28.4% 1.6x 1.3x 31.5x 22.5x NM NMeBay 57,346 53,674 32.9% 21.0% 3.8x 3.3x 11.6x 10.1x 18.9x 16.2xFacebook 45,183 35,701 53.9% 32.1% 7.3x 5.6x 13.5x 10.1x 44.2x 33.6xMail.ru 6,772 6,620 50.8% 38.4% 9.8x 7.6x 19.2x 14.7x 27.4x 20.9xIAC 4,652 3,907 17.4% 34.9% 1.4x 1.3x 8.2x 6.9x 18.9x 15.0xGroupon 4,256 3,099 14.7% 50.1% 1.3x 1.0x 8.8x 4.5x NM 16.4xMercadolibre 3,650 3,484 35.8% 28.4% 9.1x 7.1x 25.4x 19.5x 37.7x 29.4xNetflix 2,994 2,581 4.8% 13.4% 0.7x 0.6x 14.8x 8.4x NM 42.4xAsos 2,326 2,295 10.0% 21.8% 2.6x 2.0x 26.4x 20.0x 49.0x 36.7xVistaprint 1,242 1,408 12.5% 20.7% 1.3x 1.1x 10.1x 8.9x 22.3x 17.1xShutterfly 1,160 1,042 17.2% 25.5% 1.8x 1.5x 10.3x 8.1x 46.4x 31.5xOpenTable 893 821 42.1% 16.3% 5.1x 4.3x 12.0x 9.9x 24.8x 20.8xYOOX 766 752 9.6% 30.1% 1.6x 1.3x 17.0x 12.7x 43.6x 31.3xOcado 634 634 5.4% 12.7% 0.6x 0.5x 11.0x 8.3x NM NMDigital River 533 243 18.8% (1.7%) 0.6x 0.6x 3.4x 2.9x 14.7x 12.3xBlue Nile 442 389 5.9% 9.4% 1.0x 0.9x 16.9x 13.9x 46.8x 35.1xOverstock 199 156 2.4% (1.7%) 0.1x 0.1x 6.0x 4.7x 24.9x 15.0x


Online TravelPriceline 33,062 31,068 37.0% 25.9% 5.7x 4.7x 15.4x 12.2x 21.2x 17.1xExpedia 7,798 6,762 19.7% 12.5% 1.7x 1.6x 8.8x 7.8x 19.3x 16.7xCtrip 1,865 1,231 24.5% 18.4% 1.9x 1.6x 7.7x 6.4x 12.7x 10.3xOrbitz 443 696 16.9% 6.1% 0.9x 0.8x 5.1x 4.5x 16.9x 10.4xTravelzoo 348 293 23 2% 4 1% 1 9x 1 6x 8 0x 8 0x 15 3x 15 3xTravelzoo 348 293 23.2% 4.1% 1.9x 1.6x 8.0x 8.0x 15.3x 15.3x


Online MarketingHomeAway 1,959 1,738 28.6% 21.6% 6.2x 5.1x 21.7x 16.9x NM NMValueClick 1,235 1,319 31.6% 23.7% 1.9x 1.7x 6.1x 5.5x 8.9x 8.7xConstant Contact 531 450 14.4% 18.5% 1.8x 1.5x 12.3x 9.0x 33.0x 21.0xLBI 469 480 16.9% 25.6% 1.6x 1.4x 9.4x 8.3x 13.9x 12.1x1000mercis 136 103 33.1% (2.3%) 2.3x 2.1x 6.8x 6.4x 13.1x 12.2xMarchex 115 81 13.9% (6.3%) 0.6x 0.5x 4.2x 3.6x NM NMHi-Media 107 145 8.8% (5.6%) 0.5x 0.5x 5.8x 5.0x 8.9x 7.4xTradeDoubler 101 61 2.5% (14.9%) 0.2x 0.2x 6.6x 3.5x 16.4x 9.3xSedo 76 49 5.9% 8.9% 0.3x 0.3x 4.9x 4.7x NM 10.2xad pepper media 25 15 (1.7%) 4.8% 0.2x 0.2x NM 12.1x NM NM


Content Providers / CommunitiesLinkedIn 11,209 10,592 20.7% 81.0% 11.4x 7.6x NM 32.4x NM NMPandora Media 1,589 1,508 (2.4%) 53.9% 3.6x 2.5x NM NM NM NMPerform Group 1,418 1,320 25.7% 45.4% 5.7x 4.3x 22.0x 14.6x 34.5x 23.0xDemand Media 876 780 26.9% 13.1% 2.2x 1.9x 8.0x 7.3x 33.1x 26.7xWebMD Health 853 689 13.8% (17.1%) 1.5x 1.5x 10.8x 10.2x NM NM


( )Meetic 346 305 22.5% (0.8%) 1.4x 1.3x 6.1x 5.6x 10.8x 9.9xMove 345 300 13.4% 0.8% 1.5x 1.4x 11.4x 9.3x 24.1x 21.2xXING 257 189 31.9% 15.3% 2.0x 1.8x 6.4x 5.3x 18.0x 14.4xXO Group 212 143 17.3% 8.1% 1.1x 1.0x 6.2x 5.2x 29.6x 20.9x


Internet and Digital Media(Continued)(Continued)


Intermediation and ComparisonBankrate 1,797 1,912 31.0% 25.6% 3.7x 3.0x 11.9x 9.6x 34.7x 27.0xLiquidity Services 1,254 1,211 23.7% 38.2% 2.4x 2.0x 10.3x 8.4x 21.1x 17.4xMoneysupermarket 1,163 1,106 29.8% 13.5% 3.5x 3.2x 11.8x 9.8x 18.5x 15.4xZill 1 113 1 030 18 5% 72 6% 9 2 6 4 49 6 27 7 NM NM


Zillow 1,113 1,030 18.5% 72.6% 9.2x 6.4x 49.6x 27.7x NM NMAngie's List 756 694 (34.0%) 75.4% 4.5x 3.1x NM NM NM NMeHealth 355 233 15.3% 5.6% 1.5x 1.4x 9.8x 8.2x 29.6x 24.5xGruppo MutuiOnline 136 106 21.8% (35.4%) 1.9x 1.5x 8.8x 3.4x 17.8x 8.8x


Online ClassifiedsRightmove 2,607 2,572 71.5% 16.8% 14.5x 13.0x 20.3x 18.1x 27.8x 24.3xYelp 1,431 1,308 1.5% 16.8% 9.8x 6.9x NM NM NM NM51job 1,004 651 33.7% 13.5% 2.8x 2.3x 8.2x 6.5x 13.3x 10.8xSouFun 1,001 1,130 40.5% 17.4% 2.8x 2.4x 6.9x 5.7x 7.4x 6.3xMonster 732 744 16.1% (10.4%) 0.8x 0.8x 4.9x 4.0x 29.2x 16.5xDice 491 450 39.7% 5.5% 2.4x 2.3x 6.0x 5.6x 14.8x 13.6x


Chinese Internet LeadersBaidu 43,619 41,355 56.5% 58.1% 11.6x 8.2x 20.6x 15.0x 26.6x 19.8xNetease 6,963 4,751 49.5% 21.9% 3.4x 3.0x 6.9x 6.0x 11.3x 10.1xSina 2,952 2,316 6.8% 15.2% 4.2x 3.3x NM 21.2x NM 35.2xFocus Media 2,564 2,190 43.6% 28.9% 2.2x 1.9x 5.1x 4.4x 8.5x 7.0xRenren 1,481 430 (39.1%) 50.7% 2.4x 1.7x NM NM NM NMSohu 1,318 742 25.5% 21.8% 0.7x 0.6x 2.8x 2.1x 13.3x 8.6xSouFun 1,001 1,130 40.5% 17.4% 2.8x 2.4x 6.9x 5.7x 7.4x 6.3xTudou 743 645 (12.4%) 81.4% 4.6x 2.6x NM 33.9x NM NMDangdang 401 180 (8.6%) 54.3% 0.2x 0.1x NM NM NM NMTaomee 134 13 11.2% (4.5%) 0.3x 0.3x 2.7x 1.6x 26.1x 18.6xJiayuan 123 28 7.0% 20.2% 0.4x 0.4x 6.4x 2.4x 16.7x 10.3x


Online GamblingPlaytech 1,562 1,380 51.4% 15.1% 4.0x 3.6x 7.7x 7.2x 9.1x 9.0xbwin.party digital entertainment 1,228 888 20.1% (1.1%) 0.9x 0.8x 4.4x 4.0x 8.7x 7.7xBetfair 1 190 979 22 0% 4 9% 1 5x 1 5x 7 0x 6 2x 19 6x NMBetfair 1,190 979 22.0% 4.9% 1.5x 1.5x 7.0x 6.2x 19.6x NM888 426 344 15.5% 10.9% 0.9x 0.9x 6.0x 5.9x 11.6x 11.2x


Interactive EntertainmentActivision 12,355 9,163 34.4% 8.8% 2.0x 1.9x 5.7x 5.2x 11.0x 10.4xZynga 2,004 887 18.0% 7.8% 0.7x 0.7x 4.0x 3.5x 40.5x 24.6xElectronic Arts 3,811 2,916 11.9% (4.9%) 0.7x 0.6x 6.2x 3.6x 18.2x 8.2xTake-Two Interactive Software 729 682 (4.0%) (25.3%) 0.8x 0.4x NM 2.8x NA 4.2xUbisoft Entertainment 630 509 34.3% 9.2% 0.4x 0.4x 1.0x 0.9x 11.5x 9.8xTHQ 34 58 (5.4%) (45.0%) 0.1x 0.1x NM 11.8x NM NM

Mean 14.9% (8.3%) 0.8x 0.7x 4.2x 4.6x 20.3x 11.4xMedian 14.9% 1.4% 0.7x 0.5x 4.9x 3.5x 14.9x 9.8x


TMT Group Overviewand Disclosuresand Disclosures

Our Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisitionand capital markets advisory services to market leading companies. Our extensive industry knowledgeand transaction leadership experience spans the software, digital media, IT services and communicationssectors. Our professionals in London, Boston and San Francisco have global relationships with leading

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