Presented by Berkery Noyes 1

December 2010Full Year Mergers and Acquisitions Trends Report

SOFTWARE INDUSTRY2010 Key Highlights

• Thelargesttransactionin2010wasIntelCorporation’sannouncedacquisitionofMcAfee,Inc.for$7.55billion.

• Google,Inc.wasthemostactivesoftwareindustry acquirer by volume, with 23acquisitions: Widevine Technologies,Inc., Phonetic Arts, BlindType Inc.,Plannr, Quiksee, SocialDeck Inc.,Ångströ Inc., Like.com, Jambool, Inc.,Slide,Inc.,DevelopmentToolsForJava&AjaxfromInstantiations,Inc.,MetawebTechnologies, Inc., ITASoftware, InviteMedia, Inc., SimplifyMedia, GlobalIP Solutions, Bump TechnologiesInc., LabPixies, Plink, Episodic Inc.,DocVerse,reMailandPicnik,Inc.

• There were 136 financially sponsoredtransactionswithanaggregatevalueof$13.84billion, representing13percentofthetotalvolumeand17percentofthetotalvalue,respectively.

2010 Key Trends

• Totaltransactionvolumeincreasedby37percentfrom819in2009to1121in2010.

• Totaltransactionvaluein2010increasedby103percentfrom$38.29billionin2009to$77.61billionin2010.

• Themediantransactionvalueincreasedfrom$9.97millionto$19millionfrom2009to2010,a90percentincrease.

• Consumer Software increasedby 93 percent in volume from 74transactions in 2009 to 143 in 2010.

M&A Market Overview

BerkeryNoyestracked3813transactionsbetween 2007 and 2010, of which 1391disclosedfinancial terms,andcalculatedthe aggregate transaction value tobe $198.28 billion. Based on knowntransaction values, we project valuesof 2422 undisclosed transactions to be$45.19 billion totaling $243.47 billionworth of transactions tracked over thepastfouryears.

ThelargesttransactiontrackedbyBerkeryNoyesbetween2007and2010wasOracleCorporation’sacquisitionofBEASystems,Inc. for$7.97billion completed inApril of2008.

Basedonvolume,themostactivemarketsegmentthatBerkeryNoyestrackedbetween2007and2010wasNicheSoftwarewith1927transactions.Basedonvalue,themostactivemarketsegmentwasBusinessSoftwarewith$78.70billionworthoftransactions.

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IN THIS ISSUE

M&A Market OverviewFigure 1. M&A Market DynamicsFigure 2. Median Enterprise Value Multiples

Transaction AnalysisFigure 3. Bell Curve Histogram- 2010Figure 4. Distribution Table- 2010

Strategic vs. Financial ComparisonFigure 5. M&A Dynamics By Transaction Type - 2010Figure 6. Transaction Type

Purchaser AnalysisFigure 7. Top Ten Notable Transactions 2010Figure 8. Median Enterprise Value/Revenue Multiples By Size- 2010

Transaction Volume By Segment

Figure 9. Transactions by Market Segment

Footnotes

Figure 10. Market Segments

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Figure 1. 2007 - 2010 value and volume comparison.

Figure 1. 2007 - 2010 median: Value, Revenue, EBITDA comparison.

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Figure 6. Presents acquirer type distribution by year.

STRATEGIC VS FINANCIAL COMPARISON

Figure 5. 2010 value and volume comparison by acquirer type.

note: Financial transactions are those financed by private equity, venture capital, and other investment firms. This includes acquisitions by portfolio companies of the investment firms.

TRANSACTION ANALYSIS | Jan. 1, 2010 - Dec. 31, 2010

Distribution TableValue in MM

US$KnownNumber

Projected Number

Total Number % Cumulative

%$0.2 4 0 4 1 % 1 %$0.4 8 0 8 2 % 3 %$0.6 7 0 7 2 % 5 %$1.0 14 1 15 4 % 9 %$1.6 22 5 27 6 % 15 %$2.7 28 17 45 7 % 22 %$4.5 27 43 70 7 % 29 %$7.4 33 84 117 9 % 38 %$12.2 43 127 169 11 % 50 %$20.1 29 149 177 8 % 57 %$33.1 32 136 167 9 % 66 %$54.6 28 97 124 7 % 74 %$90.0 26 54 79 7 % 80 %$148.4 24 23 47 6 % 87 %$244.7 15 8 22 4 % 91 %$403.4 7 2 9 2 % 93 %$665.1 8 0 8 2 % 95 %

$1,096.6 7 0 7 2 % 97 %$1,808.0 5 0 5 1 % 98 %$2,981.0 0 0 0 0 % 98 %$4,914.8 2 0 2 1 % 99 %

Total # 374 747 1121

Total $ Value $61,517 $16,094 $77,611

Middle 3rd of Industry Middle 2/3rds of Industry

Figure 3. Shows distribution of transactions among software industry trans-actions based on publicly available information and Berkery Noyes estimates. Using a logarithmic scale, we determined that nearly two-thirds of companies purchased had transaction values of $2.7 million to $244.7 million. Based on this data, we estimate the total transaction value of deals done from Jan. 1 to Dec. 31, 2010 at $77.61 billion.

* Indicates largest transaction in the industry from Jan. 1, 2010 to Dec. 31, 2010.

Figure 4. Presents the data depicted in the bell curve-histogram.note: The projected number column is rounded as a result of the projection and may produce insignificant errors in the total sum.

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Distribution TableValue in MM

US$KnownNumber

Projected Number

Total Number % Cumulative

%$0.2 4 0 4 1 % 1 %$0.4 8 0 8 2 % 3 %$0.6 7 0 7 2 % 5 %$1.0 14 1 15 4 % 9 %$1.6 22 5 27 6 % 15 %$2.7 28 17 45 7 % 22 %$4.5 27 43 70 7 % 29 %$7.4 33 84 117 9 % 38 %$12.2 43 127 169 11 % 50 %$20.1 29 149 177 8 % 57 %$33.1 32 136 167 9 % 66 %$54.6 28 97 124 7 % 74 %$90.0 26 54 79 7 % 80 %$148.4 24 23 47 6 % 87 %$244.7 15 8 22 4 % 91 %$403.4 7 2 9 2 % 93 %$665.1 8 0 8 2 % 95 %

$1,096.6 7 0 7 2 % 97 %$1,808.0 5 0 5 1 % 98 %$2,981.0 0 0 0 0 % 98 %$4,914.8 2 0 2 1 % 99 %

Total # 374 747 1121

Total $ Value $61,517 $16,094 $77,611

Middle 3rd of Industry Middle 2/3rds of Industry

PURCHASER ANALYSIS | Jan. 1, 2010 - Dec. 31, 2010

Figure 8. Presents the median enterprise value/revenue multiples paid for companies in the software industry in 2010 based on publicly available sales price and revenue data.

Figure 7. Lists the top ten transactions for 2010 and calculates their aggregate transaction value as a percentage of the 2010 total aggregate transaction value as shown on Figure 1 & 4.

note: Transaction data based on announced date.

Top Ten Notable Transactions 2010

Deal Date Target Name Buyer Value MM US$

08/19/10 McAfee, Inc. Intel Corporation $7,54805/12/10 Sybase, Inc. SAP AG $5,64911/22/10 Novell, Inc. Attachmate Corporation $2,14507/07/10 Intergraph Corporation Hexagon AB $2,12509/02/10 3PAR Inc. HP $2,07309/26/10 Visma ASA Kohlberg Kravis Roberts & Co. $1,90204/21/10 CyberSource Corporation Visa, Inc. $1,84209/20/10 Netezza Corporation IBM $1,73009/13/10 ArcSight, Inc. HP $1,51204/28/10 Palm, Inc. HP $1,401

2010 Aggregate Transaction Value $77,611

Top 10 Aggregate Transaction Value $27,927

Top 10 Aggregate Value as a Percentage of All Transactions 36 %

TRANSACTION VOLUME BY SEGMENT | Jan. 1, 2007 - Dec. 31, 2010

Figure 9. Presents the transaction volume by target segment within the software industry.

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JOHN GUZZO | Managing Director, Finance Group

VIVEK KAMATH | Managing Director, Education Group

THOMAS O’CONNOR | Managing Director, Healthcare/Life Sciences Group

DICK O’DONNELL | Managing Director, Finance Group

PETER OGNIBENE | Managing Director, Finance Group

JEFFREY SMITH | Managing Director, Healthcare/Life Sciences Group

KATHLEEN THOMAS | Managing Director, Media & Marketing Services Group

CHRISTOPHER YOUNG | Managing Director, Finance Group

MARY JO ZANDY | Managing Director, Media, Software & Online

JOSEPH BERKERY | Chief Executive Officer

JOHN SHEA | Chief Operating Officer

About Berkery Noyes

Founded in 1980, Berkery Noyes is the leading independent investment bank specializing in the information content and technology industries. The firm has initiated, managed and closed more than 475 merger and acquisition transactions for privately held and publicly traded companies in the business, technol-ogy, education, health, financial and legal information segments. Berkery Noyes is unique among investment banking firms in that we combine truly independent strategic research and industry intelligence with senior information technology banking expertise. With no equity fund or brokerage business to manage, our partners and investment bank-ing professionals are one hundred percent focused on M&A advisory services. Berkery Noyes employs over 40 individuals with deep industry knowledge and experience who strive to exceed our clients’ expecta-tions by maximizing the full value of their information technology and content assets.

All charts in this report are based on data gathered by Berkery Noyes

research department. All time period statistics are based on the transaction announcement date.

For current intelligence on Merger and Acquisition activity in the

Information Industry please visit our online service at

www.mandasoft.com

The DNA of M&A

Market SegmentsMarket Segment Description

Business Software

Software designed for general business practices, such as enterprise resource planning, ECM, supply chain management, ERM, customer relationship management, and not for industry specific needs.

Consumer Software Software designed for personal use, such as entertainment and media applications.

Infrastructure Software Software designed to maintain systems, security, networks, digital storage, communications, development applications, etc.

Niche Software

Software designed to be used in niche industries such as educational institutions, healthcare and pharmaceutical companies, financial services firms, construction firms, energy companies, etc.

Figure 10. Represents what types of software companies are included in Figure 9.