pwc technology deals benchmarking insights dec 2016

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Technology dealsBenchmarking insights

December 2016

1 Trends in market multiples 1

2 Control premiums paid in technology deals 7

3 Purchase price allocations by technology sector 11

4 Goodwill impairment trends by technology sector 17

Table of Contents

PageSection

PwC

December 2016

Trends in market multiples

1

Technology deals • Benchmarking insights

PwC

December 2016

Multiples – Software sector

2


Section 1 – Trends in market multiples

2.4x 2.6x 2.7x

12.0x14.6x

15.9x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2013 2014 2015

Software transaction multiples (median)

OV/Revenue OV/EBITDA

3.4x

16.7x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

2.0x

4.0x

6.0x

Software GPC multiples (median)

OV / Revenue OV / EBITDA

Sector Highlights

• Median revenue multiple stayed largely flat at 2014 levels despite an increase in number of transactions.

• Median EBITDA multiple trended up in 2015 largely driven by more middle-market transactions (and fewer billion dollar transactions).

Source: Capital IQ

PwC

December 2016

Multiples – Internet sector

3



Sector Highlights

• Both the revenue and EBITDA multiple declined in 2015 compared to prior years. This is partly driven by a shift toward larger deals which, on average, tend to price at a lower multiple than smaller, high growth companies.

• The average EBITDA multiple was also high in 2013 and 2014, as a result of Zillow Group’s acquisition of StreetEasy (42.0x EV/EBITDA) and Priceline’s acquisition of OpenTable (41.5x EV/EBITDA).2.2x

14.5x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

Internet GPC multiples (median)


4.8x 4.0x 2.9x

15.5x 15.9x

11.4x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

2013 2014 2015

Internet transaction multiples (median)


Source: Capital IQ

PwC

December 2016

Multiples – IT Services sector

4



Sector Highlights

• The median revenue multiple declined in 2015, trending back to 2013 levels, due to the increase in sub-$100 million dollar transactions, wherein targets often lacked profitability, resulting in lower valuation multiples.

• The EBITDA multiple demonstrated a decline in 2015; however the sample size of disclosed deal multiples was limited.

1.0x1.8x 1.3x

15.7x

7.4x6.0x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

1.0x

2.0x

3.0x

4.0x

2013 2014 2015

IT Services transaction multiples (median)


1.6x

12.4x

0.0x

4.0x

8.0x

12.0x

16.0x

0.0x

1.0x

2.0x

3.0x

IT Services GPC multiples (median)


Source: Capital IQ

PwC

December 2016

Multiples – Semiconductor

5



Sector Highlights

• The revenue multiple declined in 2015 largely, driven in part by consolidation amongst more mature Semiconductor companies wherein earnings are more indicative of value, rather than multiples on high-growth revenue streams common to other sectors.

• The EBITDA multiple remained stable as companies continued to pay for earnings in a low growth sector.

1.9x

11.6x

0.0x

4.0x

8.0x

12.0x

16.0x

0.0x

2.0x

4.0x

6.0x

Semiconductor GPC multiples (median)


3.0x 2.7x1.7x

24.3x

16.7x 16.5x

0.0x

10.0x

20.0x

30.0x

0.0x

2.0x

4.0x

6.0x

2013 2014 2015

Semiconductor transaction multiples (median)


Source: Capital IQ

PwC

December 2016

Multiples – Hardware

6



Sector Highlights

• Overall, the median revenue multiple remained relatively flat in 2015, while the median EBITDA multiple continued to decline, though appearing to stabilize.

• Within the sector, 2015 witnessed lower revenue multiples in the networking and communications space, offset by higher multiples amid more specialized equipment.

0.7x1.7x 1.6x

15.9x

11.3x 10.2x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

2013 2014 2015

Hardware transaction multiples (median)


1.1x

11.2x

0.0x

5.0x

10.0x

15.0x

20.0x

0.0x

1.0x

2.0x

3.0x

4.0x

Hardware GPC multiples (median)


Source: Capital IQ

PwC

December 2016

Control premiums paid in technology deals

7


PwC

December 2016

Control premium trends in technology transactions (2013 – 2015)

8


Section 2 – Control premiums paid in technology deals

Investment value = Standalone value + Synergies – Integration costs

Potential premium

Source: Capital IQ

Min 0%Min 17%

Min 3%

Max 78%

Max 59%

Max 92%

Median 48%

Median 31%Median 34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015

Control premium trends

Highlights

• Control premiums in 2015 increased modestly from the prior year, with a median premium of 34% in 2015 compared to 31% in 2014.

• A wider range of premiums was observed in 2015, with premiums as low as 3% and as high as 92%.

PwC

December 2016

Software – Control premiums

9




35%32% 31%

11%

33%35%

46%

10%

45%

35%

40%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Software SaaS Internet IT services

Software control premiums (median for 2013 – 2015 deals)

1-day 1-week 1-month

Source: Capital IQ

Potential premium

PwC

December 2016

Hardware – Control premiums

10




35%

22%25%

29%31%

25%

35%

39%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Semiconductors Computer networking andhardware

Electronic components

Hardware control premiums (median for 2013 – 2015 deals)

1-day 1-week 1-month

Source: Capital IQ

Potential premium

PwC

December 2016

Purchase price allocations by technology sector

11


PwC

December 2016

Software deals (2013 – 2015) Allocation of value by sub-sector

12


Section 3 – Purchase price allocations by technology sector

60%69% 74% 72%

9%

15%

9%

3%

4%

19%

17% 10%21%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Software SaaS Internet IT services

Software - Allocation of value by sub-sector

Goodwill Trade Names Technology

Customer relationships IPR&D Other

Relatively higher allocation to technology assets observed for

software companies

Relatively higher allocation to customer relationship assets observed for IT consulting

services

Relatively higher levels of goodwill observed for Internet

companies

Source: Company 10Q / 10K filings. Allocation details may be based on preliminary purchase price allocations.

PwC

December 2016

Hardware deals (2013 – 2015)Allocation of value by sub-sector

13



IPR&D recognized in multiple semiconductor transactions

Relatively lower levels of goodwill observed for

semiconductor companies

Higher levels of allocation to technology assets observed

relative to software companies

45% 52%62%

31% 27%

16%

10% 17% 17%8%

5% 3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Semiconductors Computer networkingand hardware

Electronic components

Hardware - Allocation of value by sub-sector

Goodwill Trade Names Technology

Customer relationships IPR&D Other


PwC

December 2016

Software sector – Amortization lives

14



30.0

18.7 20.0

6.1 6.0

8.8

0.3 1.0 1.0 0

5

10

15

20

25

30

35

Trade Names Technology Customer relationships

Am

or

tiz

ati

on

liv

es

(in

ye

ar

s)

Software sector - Amortization lives

Average

We continue to observe indefinite

lived trade names in the software sector

Source: Company 10Q / 10K filings. Allocation details may be based on preliminary purchase price allocations.Charts represent average life of definite lived assets. For e.g. trade names with indefinite amortization lives are excluded.

PwC

December 2016

Hardware transactions – Amortization lives

15



The longest amortization life observed in the

hardware sector for technology and

customer relationship assets was 20 years

19.5 20.0 20.0

5.8 7.0

8.2

0.5 1.0 1.0 0

5

10

15

20

25

Trade Names Technology Customer relationships

Am

or

tiz

ati

on

liv

es

(in

ye

ar

s)

Hardware sector - Amortization lives

Average

Source: Company 10Q / 10K filings. Allocation details may be based on preliminary purchase price allocations.Charts represent average life of definite lived assets. For e.g. trade names with indefinite amortization lives are excluded.

PwC

December 2016

Examples of deferred revenue ‘haircuts’ in recent software transactions

16



Depending on the nature of deferred

revenue, haircuts can have a wide range

Closed Purchase Fair value Book value Haircut T arget

Acquirer T arget date consideration ("FV") ("BV") as a % of BV sub-sector

Churchill Downs Inc. Big Fish Games, Inc. 12/16/2014 803.7 37 .3 40.7 8.4% Entertainment Software

Synopsys Inc. Coverity , Inc. 3/24/2014 37 5.5 21.3 68.5 68.9% Systems Software

Dassault Systemes Apriso Corporation 7 /2/2013 17 9.2 3.5 5.9 41.0% Application Software

Blackhawk Network Achievers Corp. 6/30/2015 103.5 52.3 54.9 4.7 % Internet Software and Services

Actua Corporation Folio Dynamics Inc. 11/3/2014 205.8 3.8 9.8 61.2% Internet Software and Services

Mitel Networks Aastra Technologies 1/31/2014 47 1.3 37 .4 40.2 7 .0% Communications Equipment

Oracle Corporation MICROS Systems 9/5/2014 5,247 .0 17 7 .0 193.9 8.7 % Systems Software

Deferred revenue in recent software transactions USD in millions


PwC

December 2016

Goodwill impairment trends by technology sector

17


PwC

December 2016

Goodwill impairment trends (2013 – 2015)

18


Section 4 – Goodwill impairment trends by technology sector

Source: Capital IQ

Impairment Highlights

• The overall increase in impairments during 2015 was largely driven by one company in the Software sub-sector.

• Despite the overall dollar increase, a smaller percentage of technology companies experienced impairments in 2015 as compared to 2014 (2.2% vs 5.9%, respectively).

4.8%

5.9%

2.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2013 2014 2015

Go

od

wil

l im

pa

irm

en

t(U

SD

in

mil

lio

ns

)

Goodwill impairment trends (2013 - 2015)

Semiconductor Hardware

Internet IT Services

Software % of tech companies with impairment

PwC

December 2016

Appendix 1

Software deals (since January 2013)Goodwill and intangible asset benchmarking

19

PwC

December 2016

Software

Goodwill and intangible asset benchmarking (1)

Summary

ALLOCATION OF EXCESS CONSIDERATION

Total intangible Trade Names / Dev Technology / Customer

Goodwill assets Trade Marks Patents relationships IPR&D Other (2)

Average (3) 59.6% 40.4% 2.0% 15.1% 18.6% 1.7% 6.2%

Median (3) 59.8% 40.2% 0.3% 13.4% 14.9% 0.0% 0.8%

Count 49

Trade Names / Dev Technology / Customer

Trade Marks Patents relationships

Amortization life range (years) 0.3 - Indefinite 2 - 18.7 1 - 20

Average amortization life (years) (4) 5.8 6.4 7.9

Notes

(1) Source: Company 10Q / 10K filings. Allocation details may be based on preliminary puchase price allocations.

(2) 'Other' intangibles include non-compete agreements, content database etc.

(3) The calculation of average and median excess consideration allocated to each intangible asset category includes only those transactions in which

identifiable intangible asset allocation values were available in public filings. As such, the average and median by category do not aggregate to the

average and median total intangible allocation.

(4) The calculation of average useful lives for customer relationships and technology was based on the median of the midpoint of the ranges noted

for the various transactions.

20

PwC

December 2016

SoftwareGoodwill and intangible asset benchmarking (1)USD in millions ALLOCATION OF EXCESS CONSIDERATION

Closed Purchase Excess Total intangible Trade Names / Dev Technology / Customer

Acquirer Target date consideration consideration (2) Goodwill assets Trade Marks Patents relationships IPR&D Other

NYX Gaming Group Limited Amaya (Alberta) Inc. 7/31/2015 150.0 147.1 23% 77% 0% 0% 61% 0% 16%

CA, Inc. Rally Software Development 7/8/2015 519.0 524.0 49% 51% 0% 36% 0% 0% 15%Global Payments Gaming Certegy Check Services 6/1/2015 237.5 237.7 43% 57% 0% 0% 57% 0% 0%LinkedIn Corporation lynda.com, Inc. 5/14/2015 1,487.0 1,487.2 76% 24% 0% 3% 15% 0% 7%Science Applications Scitor Holdings, Inc. 5/4/2015 803.0 736.0 65% 35% 1% 0% 32% 0% 2%DH Corporation Fundtech Ltd. 4/30/2015 1,551.6 1,693.7 49% 51% N/A N/A N/A N/A N/ATemenos Group AG IGEFI Group s.à r.l. 3/4/2015 272.6 279.6 53% 47% N/A N/A N/A N/A N/AOpen Text Corporation Actuate Corporation 1/15/2015 332.0 320.0 62% 38% 0% 19% 20% 0% 0%Belden Inc. Tripwire, Inc. 1/2/2015 703.2 783.6 61% 39% 4% 27% 7% 1% 0%

Churchill Downs Incorporated Big Fish Games, Inc. 12/16/2014 803.7 901.8 60% 40% 22% 10% 4% 1% 3%Yahoo! Inc. BrightRoll Inc. 12/15/2014 582.9 535.8 79% 21% 0% 4% 16% 0% 2%

Progress Software Corporation Telerik AD 12/2/2014 252.0 261.0 53% 47% 4% 25% 18% 0% 0%Aetna Inc. bswift, LLC 11/25/2014 400.0 391.6 81% 19% 2% 11% 7% 0% 0%

Heartland Payment Systems, Inc. TouchNet Information Systems 9/4/2014 371.7 366.0 61% 39% N/A N/A N/A N/A N/AMedtronic, Inc. Sapiens Stimulation 8/25/2014 203.0 200.0 85% 15% 0% 0% 0% 15% 0%

Cirrus Logic, Inc. Wolfson Microelectronics plc 8/21/2014 469.5 425.0 59% 41% 0% 17% 3% 17% 3%SanDisk Corp. Fusion-io, Inc. 7/23/2014 1,263.5 985.7 55% 45% 5% 27% 6% 6% 0%Optimal Payments Plc TK Global Partners LP 7/23/2014 226.1 222.8 75% 25% N/A N/A N/A N/A N/A

WEX Inc.Evolution1, Inc. (nka:WEX Health, Inc.) 7/16/2014 532.2 598.8 50% 50% 3% 12% 35% 0% 0%

Cisco Systems, Inc. Tail-f Systems AB 7/9/2014 167.0 174.0 65% 35% 0% 32% 3% 0% 0%Xchanging plc Agencyport Software 7/4/2014 64.1 77.0 41% 59% 0% 16% 43% 0% 0%

Cadence Design Systems, Inc. Jasper Design 6/13/2014 168.2 174.3 47% 53% 1% 39% 8% 6% 0%Belden Inc. ProSoft Technology, Inc. 6/11/2014 104.1 97.0 58% 42% 5% 9% 27% 0% 0%Palo Alto Networks, Inc. Cyvera Ltd 4/9/2014 177.6 187.2 77% 23% 0% 18% 0% 4% 0%Synopsys, Inc. Coverity, Inc. 3/24/2014 375.5 368.3 72% 28% N/A N/A N/A N/A N/AGlobal Payments Inc. Payment Processing, Inc. 3/4/2014 427.7 460.8 59% 41% 0% 2% 32% 0% 7%VMware, Inc. AirWatch, LLC 2/24/2014 1,128.0 1,129.0 78% 22% 4% 10% 7% 0% 1%Tribune Company Gracenote, Inc. 2/3/2014 157.8 179.1 37% 63% 5% 17% 18% 0% 23%Wirecard AG PT. Aprisma Indonesia 2/3/2014 56.3 83.7 29% 71% 0% 0% 71% 0% 0%Equifax Inc. TDX Group Limited 1/15/2014 322.8 342.6 67% 33% 3% 5% 20% 0% 4%Markit Ltd. Thinkfolio Limited 1/13/2014 92.9 101.2 57% 43% N/A N/A N/A N/A N/A

Amdocs Limited Celcite Management Solutions 1/1/2014 254.1 148.7 53% 47% 0% 15% 31% 0% 1%FireEye, Inc. Mandiant Corporation 12/30/2013 897.7 978.1 72% 28% 1% 6% 7% 0% 14%PTC Inc. ThingWorx, Inc. 12/30/2013 124.7 134.7 76% 24% 2% 16% 7% 0% 0%

Altisource Portfolio Solutions S.A. Equator, LLC 11/15/2013 109.4 125.9 66% 34% 0% 0% 34% 0% 0%Cisco Systems, Inc. Sourcefire, Inc. 10/7/2013 2,449.0 2,368.0 76% 24% N/A N/A N/A N/A N/AAmdocs Limited Actix Limited 9/19/2013 112.4 131.8 61% 39% 0% 21% 15% 2% 2%

Davis + Henderson Corp Harland Financial Solutions 8/16/2013 1,238.2 1,516.2 50% 50% 3% 0% 33% 0% 14%

Vantiv, Inc. Element Payment Services 7/31/2013 162.5 164.9 82% 18% 0% N/A 18% N/A N/ACisco Systems, Inc. Composite Software LLC 7/29/2013 160.0 170.0 56% 44% 0% 35% 8% 1% 0%

Adobe Systems Incorporated Neolane SAS 7/22/2013 616.5 630.0 82% 18% N/A N/A N/A N/A N/AHasbro, Inc. Backflip Studios, Inc. 7/8/2013 160.0 154.0 77% 23% N/A N/A N/A N/A N/ADassault Systemes Apriso Corporation 7/2/2013 179.2 190.0 50% 50% 0% 32% 17% 0% 0%Google Inc. Waze Mobile Limited 6/11/2013 966.0 1,035.0 82% 18% N/A N/A N/A N/A N/ACA, Inc. CA API Management Inc. 6/5/2013 155.0 168.0 33% 67% 0% 52% 0% 0% 15%LinkedIn Corporation Alphonso Labs, Inc. 4/17/2013 47.6 49.7 72% 28% 5% 19% 0% 0% 4%Emulex Corporation Endace Limited 3/28/2013 110.4 130.7 53% 47% 2% 32% 4% 10% 0%athenahealth, Inc. Epocrates, Inc. 3/12/2013 293.0 246.6 43% 57% 5% 7% 42% 0% 3%Diodes Incorporated BCD Semiconductor 3/5/2013 154.7 19.4 11% 89% N/A N/A N/A N/A N/A

Notes


(2) Excess consideration is defined as the total purchase consideration (including any liabilities assumed) less net tangible assets acquired.

21

PwC

December 2016

Software


Amortization lives

AMORTIZATION LIFE (in years)


Acquirer Target Trade Marks Patents relationships

CA, Inc. Rally Software Development 1 - 15 5 - 7 1 - 15

LinkedIn Corporation lynda.com, Inc. 1 2 2 - 4

Science Applications Scitor Holdings, Inc. 2 N/A 12

DH Corporation Fundtech Ltd. 3 3 3

Belden Inc. Tripwire, Inc. Indefinite 5.8 15

Churchill Downs Incorporated Big Fish Games, Inc. NA 4 3

Yahoo! Inc. BrightRoll Inc. 5 5 5

Progress Software Corporation Telerik AD 5 5 5

Microsoft Corporation Mojang AB 6.4 6.4 6.4

Heartland Payment Systems, Inc. TouchNet Information Systems 5 15 20

Cirrus Logic, Inc. Wolfson Microelectronics plc 1.3 6.2 10

SanDisk Corp. Fusion-io, Inc. 5 5 1.5

WEX Inc.Evolution1, Inc. (nka:WEX Health, Inc.) 9.9 6.4 9.7

Cisco Systems, Inc. Tail-f Systems AB N/A 7 6.8

Xchanging plc Agencyport Software N/A 5 - 7 5 - 10

Cadence Design Systems, Inc. Jasper Design 8 8 8

Belden Inc. ProSoft Technology, Inc. 0.3 5 20

Palo Alto Networks, Inc. Cyvera Ltd N/A 7 N/A

VMware, Inc. AirWatch, LLC 8 2 - 6 2 - 8

Tribune Company Gracenote, Inc. 15 7 - 10 5 - 10

Equifax Inc. TDX Group Limited 10 18.7 10

Amdocs Limited Celcite Management Solutions N/A 3 4

FireEye, Inc. Mandiant Corporation 4 4 - 6 8

PTC Inc. ThingWorx, Inc. 12 11 9

Altisource Portfolio Solutions S.A. Equator, LLC N/A N/A 7 - 15

Amdocs Limited Actix Limited N/A 4 4

Vantiv, Inc. Element Payment Services 1 N/A 10

Cisco Systems, Inc. Composite Software LLC N/A 6 3.9

CA, Inc. CA API Management Inc. 3 5 3

LinkedIn Corporation Alphonso Labs, Inc. 2.9 2.9 N/A

Emulex Corporation Endace Limited 11.6 8.95 3.5

Notes

(1) Source: Company 10Q / 10K filings

22

PwC

December 2016

Appendix 2

Software as a Service (SaaS) deals (2013 - 2015)Goodwill and intangible asset benchmarking

23

PwC

December 2016

Software as a Service (SaaS)


Summary




Average (3) 68.7% 29.4% 3.4% 8.9% 16.6% 0.1% 1.4%

Median (3) 72.4% 27.4% 1.5% 7.1% 13.6% 0.0% 0.0%

Count 52.0



Amortization life range (years) 1 - Indefinite 1 - 18 1 - 20


Notes


(2) 'Other' intangibles include non-compete agreements, supplier agreements etc.






24

PwC

December 2016



USD in millions ALLOCATION OF EXCESS CONSIDERATION

Closed Purchase Excess Total intangible Trade Names / Dev Technology / CustomerAcquirer Target date consideration consideration Goodwill assets Trade Marks Patents relationships IPR&D OtherMcGraw Hill Financial, Inc. (nka:S&P Global, Inc.) SNL Financial LC 9/1/2015 2,231.0 2,330.0 67% 33% 8% 18% 7% 0% 0%Zillow Group, Inc. dotloop, Inc. 8/20/2015 105.5 108.4 79% 21% 1% 10% 9% 0% 0%CDW Corporation Kelway Limited 8/1/2015 499.7 603.6 52% 48% 0% 0% 43% 0% 4%EMC Corporation (nka:Dell EMC) Virtustream Inc. 7/9/2015 1,219.0 1,270.0 70% 30% 2% 24% 4% 0% 0%Splunk Inc. Caspida, Inc. 7/9/2015 128.4 138.6 67% 33% 0% 32% 0% 1% 0%Blackhawk Network Achievers Corp. 6/30/2015 103.5 154.9 37% 63% 0% 11% 48% 0% 4%NetSuite Inc. Bronto Software, Inc. 6/8/2015 184.1 188.9 83% 17% 2% 7% 7% 0% 2%Infosys Limited Kallidus Inc. 6/2/2015 107.0 121.0 59% 41% 2% 17% 22% 0% 0%Twitter, Inc. TellApart, Inc. 5/22/2015 479.1 461.8 86% 14% 0% 5% 9% 0% 0%Harman International Industries Symphony Teleca 4/8/2015 745.7 805.4 75% 25% 2% 1% 23% 0% 0%IMS Health Holdings, Inc. Cegedim SA 4/1/2015 426.0 392.0 34% 66% 3% 7% 34% 0% 22%Global Payments Inc. Pay and Shop Limited 3/25/2015 118.9 126.6 53% 47% 3% 31% 13% 0% 0%Navient Corporation Gila LLC 2/20/2015 185.0 185.0 52% 45% 7% 0% 38% 0% 0%Zillow, Inc. Trulia, Inc. 2/17/2015 1,966.4 2,286.1 76% 24% 15% 4% 4% 0% 1%Yelp Inc. Eat24Hours.com, Inc. 2/9/2015 134.2 150.5 74% 26% 2% 5% 20% 0% 0%The Dun & Bradstreet Corporation NetProspex, Inc. 1/5/2015 128.4 126.1 69% 31% 0% 15% 5% 0% 11%Solera Holdings Inc. CAP Automotive Limited 11/20/2014 449.7 486.9 60% 40% 12% 12% 16% 0% 0%News Corporation Move, Inc. 11/13/2014 892.0 949.0 73% 27% 17% 0% 11% 0% 0%Impellam Group PLC Lorien Resourcing Limited 11/10/2014 6.5 8.5 45% 55% 25% 0% 30% 0% 0%Actua Corporation Folio Dynamics Inc. 11/3/2014 205.8 212.8 78% 22% 4% 7% 11% 0% 0%Global Payments Inc. Ezi Holdings Pty Ltd. 10/10/2014 266.0 267.7 73% 27% 1% 10% 16% 0% 0%Intercontinental Exchange, Inc. SuperDerivatives Inc. 10/7/2014 358.0 369.0 83% 17% 0% 14% 2% 0% 0%Cisco Systems, Inc. Metacloud, Inc. 9/29/2014 149.0 156.0 81% 19% 0% 15% 2% 1% 0%Oracle Corporation MICROS Systems, Inc. 9/5/2014 5.2 5.3 63% 37% N/A N/A N/A N/A N/AYahoo! Inc. Flurry, Inc. 8/25/2014 269.7 250.7 78% 22% 0% 3% 19% 0% 0%LinkedIn Corporation Bizo, Inc. 8/13/2014 161.0 161.7 70% 30% N/A N/A N/A N/A N/APTC Inc. Axeda Corporation 8/11/2014 175.5 189.6 69% 31% 1% 10% 19% 0% 0%salesforce.com, inc. RelateIQ, Inc. 8/1/2014 340.2 306.1 95% 5% 0% 5% 1% 0% 0%Acxiom Corporation LiveRamp, Inc. 7/1/2014 284.7 282.5 76% 24% 1% 14% 9% 0% 0%WidePoint Corporation Soft-ex Communication Ltd. 5/1/2014 6.0 5.2 81% 19% N/A N/A N/A N/A N/ARed Hat, Inc. Inktank Storage, Inc. 4/30/2014 152.5 142.8 92% 8% 2% 0% 5% 0% 0%NeuStar, Inc. .CO Internet S.A.S. 4/14/2014 1,151.0 1,151.0 3% 7% N/A N/A N/A N/A N/ACoStar Group, Inc. Apartments, LLC 4/1/2014 584.2 575.7 73% 27% 12% 2% 12% 0% 0%Gartner, Inc. Software Advice, Inc. 3/7/2014 103.2 100.6 73% 27% N/A N/A N/A N/A N/AConvergys Corporation Stream Global Services, Inc. 3/3/2014 802.6 651.4 43% 57% 3% 0% 54% 0% 0%Akamai Technologies, Inc. Prolexic Technologies, Inc. 2/18/2014 392.1 381.0 77% 23% 0% 7% 15% 0% 0%Verint Systems Inc. KANA Software, Inc. 2/3/2014 541.7 547.9 60% 40% 2% 10% 28% 0% 0%Engility Holdings, Inc. Dynamics Research 1/28/2014 207.3 211.8 78% 22% 0% 0% 20% 0% 2%Open Text Corporation GXS Group, Inc. 1/16/2014 1,218.8 1,326.1 63% 37% 0% 9% 27% 0% 0%NCR Corporation Digital Insight Corporation 1/10/2014 1,648.0 1,813.0 69% 31% 1% 7% 23% 0% 0%Groupon, Inc. Living Social Korea Inc. 1/2/2014 263.0 332.9 67% 33% 6% 0% 27% 0% 0%Accenture plc Procurian Inc. 12/4/2013 0.4 0.4 83% 17% N/A N/A N/A N/A N/ATowers Watson & Co. Liazon Corporation 11/22/2013 204.3 212.4 82% 16% 0% 16% 0% 0% 0%ACI Worldwide, Inc. Official Payments Holdings 11/5/2013 139.8 116.1 37% 63% 4% 17% 41% 0% 0%Monsanto Company The Climate Corporation 11/1/2013 932.0 930.0 84% 16% 0% 0% 0% 0% 15%Econocom Group SA/NV Osiatis SA 10/31/2013 225.9 252.0 94% 6% 5% 0% 0% 0% 1%NeuStar, Inc. Aggregate Knowledge, Inc. 10/29/2013 117.4 104.1 64% 30% 0% 27% 2% 0% 0%Twitter, Inc. MoPub Inc. 10/28/2013 218.8 227.5 85% 15% 0% 6% 9% 0% 0%Rogers Communications Inc. Pivot Data Centres Inc. 10/1/2013 158.0 114.0 68% 32% 0% 0% 32% 0% 0%salesforce.com, inc. ExactTarget, Inc. 7/10/2013 2,584.5 2,550.5 72% 28% 1% 12% 14% 0% 0%IBM Corporation SoftLayer Technologies, Inc. 7/3/2013 1,977.0 1,896.0 68% 32% 4% 15% 13% 0% 0%Yahoo! Inc. Tumblr, Inc. 6/20/2013 990.2 1,014.4 74% 26% 6% 2% 18% 0% 0%

Notes(1) Source: Company 10Q / 10K filings. Allocation details may be based on preliminary puchase price allocations.(2) Excess consideration is defined as the total purchase consideration (including any liabilities assumed) less net tangible assets acquired.

25

PwC

December 2016



Amortization lives


Trade Names / Dev Technology / Customer Acquirer Target Trade Marks Patents relationshipsMcGraw Hill Financial, Inc. (nka:S&P Global, Inc.) SNL Financial LC 9/1/2015 10 - 18 10 - 18 10 - 18Zillow Group, Inc. dotloop, Inc. 8/20/2015 3 3 6 - 7CDW Corporation Kelway Limited 8/1/2015 1 2 13EMC Corporation (nka:Dell EMC) Virtustream Inc. 7/9/2015 7.6 8.6 12.3Splunk Inc. Caspida, Inc. 7/9/2015 N/A 6 3Blackhawk Network Achievers Corp. 6/30/2015 N/A 6 15NetSuite Inc. Bronto Software, Inc. 6/8/2015 3 5 7Twitter, Inc. TellApart, Inc. 5/22/2015 1 - 6 1 - 6 1 - 6Harman International Industries Symphony Teleca 4/8/2015 0.75 3 11 - 12IMS Health Holdings, Inc. Cegedim SA 4/1/2015 10 - 15 2 - 10 10 - 15Global Payments Inc. Pay and Shop Limited 3/25/2015 7 10 16Navient Corporation Gila LLC 2/20/2015 Indefinite N/A 2 - 16Zillow, Inc. Trulia, Inc. 2/17/2015 2 - Indefinite 3 - 7 3 - 7Yelp Inc. Eat24Hours.com, Inc. 2/9/2015 4 5 7 - 12The Dun & Bradstreet Corporation NetProspex, Inc. 1/5/2015 N/A 6.5 5.5Solera Holdings Inc. CAP Automotive Limited 11/20/2014 Indefinite 10 19.8News Corporation Move, Inc. 11/18/2014 Indefinite N/A 5Actua Corporation Folio Dynamics Inc. 11/3/2014 5 8 10Global Payments Inc. Ezi Holdings Pty Ltd. 10/10/2014 5 15 15Intercontinental Exchange, Inc. SuperDerivatives Inc. 10/7/2014 N/A 5 12Cisco Systems, Inc. Metacloud, Inc. 9/29/2014 N/A 3 5Yahoo! Inc. Flurry, Inc. 8/25/2014 N/A 5 5LinkedIn Corporation Bizo, Inc. 8/13/2014 N/A 3 3PTC Inc. Axeda Corporation 8/11/2014 12 9 9salesforce.com, inc. RelateIQ, Inc. 8/1/2014 N/A 7 1 - 3Acxiom Corporation LiveRamp, Inc. 7/1/2014 2 4 6Alibaba Group Holding Limited UCWeb Inc. 6/11/2014 3.4 3.4 3.4Red Hat, Inc. Inktank Storage, Inc. 4/30/2014 Indefinite 5 5CoStar Group, Inc. Apartments, LLC 4/1/2014 13 1 10

Convergys CorporationStream Global Services, Inc. 3/3/2014 4 N/A 17

Akamai Technologies, Inc.Prolexic Technologies, Inc. 2/18/2014 4.9 6.9 10.4

Verint Systems Inc. KANA Software, Inc. 2/3/2014 5 3 - 5 5 - 10

NCR CorporationDigital Insight Corporation 1/10/2014 7 5 8 - 18

ACI Worldwide, Inc.Official Payments Holdings 11/5/2013 3 - 5 10 14 - 15

Monsanto Company The Climate Corporation 11/1/2013 N/A N/A 1Econocom Group SA/NV Osiatis SA 10/31/2013 10 3 - 7 20NeuStar, Inc. Aggregate Knowledge, Inc. 10/29/2013 3 5 5Twitter, Inc. MoPub Inc. 10/28/2013 2 3 3salesforce.com, inc. ExactTarget, Inc. 7/10/2013 3 - 4 4 - 7 6 - 8

IBM CorporationSoftLayer Technologies, Inc. 7/3/2013 2 - 7 5 - 7 7

Yahoo! Inc. Tumblr, Inc. 6/20/2013 6 6 6

Notes(1) Source: Company 10Q / 10K filings

26

PwC

December 2016

Appendix 3

Internet deals (2013 - 2015)Goodwill and intangible asset benchmarking

27

PwC

December 2016

Internet


Summary




Average (3) 73.5% 26.5% 9.5% 3.4% 10.3% 0.0% 2.4%

Median (3) 74.1% 26.0% 6.2% 2.2% 11.0% 0.0% 0.2%

Count 22





Notes


(2) 'Other' intangibles include non-compete agreements, supplier relationships etc.






28

PwC

December 2016

Internet





Yahoo! Inc. Polyvore, Inc. 9/2/2015 160.6 150.1 87% 13% 1% 12% 0% 0% 0%

Verizon Communications Inc. AOL Inc. 6/23/2015 4,132.0 4,425.0 41% 59% N/A N/A N/A N/A N/A

Zoopla Property Group Plc Ulysses Enterprises Limited 6/1/2015 269.0 274.8 71% 29% 27% 2% 0% 0% 0%

Under Armour, Inc. MyFitnessPal, Inc. 3/17/2015 463.9 451.0 89% 11% 1% 1% 8% 0% 1%

Zillow Group, Inc. Trulia, Inc. 2/17/2015 1,966.4 2,286.1 76% 24% 15% 4% 4% 0% 1%

Yelp Inc. Eat24Hours.com, Inc. 2/9/2015 134.2 150.5 74% 26% 2% 5% 8% 0% 12%

Adobe Systems Incorporated Fotolia LLC 1/27/2015 807.5 952.3 79% 21% N/A N/A N/A N/A N/A

Solera Holdings Inc. CAP Automotive Limited 11/20/2014 449.7 486.9 60% 40% 12% 12% 16% 0% 0%

News Corporation Move, Inc. 11/13/2014 892.0 762.0 74% 26% 15% 0% 11% 0% 0%

Facebook, Inc. WhatsApp Inc. 10/6/2014 17,193.0 18,125.0 85% 15% 2% 2% 11% 0% 0%

Amazon.com Inc. Twitch Interactive, Inc. 9/25/2014 862.0 937.0 75% 25% 2% 4% 19% 0% 0%

Mail.Ru Group Limited VKontakte Ltd. 9/16/2014 3,013.6 3,101.7 78% 22% 8% 0% 14% 0% 1%

LinkedIn Corporation Bizo, Inc. 8/13/2014 160.3 161.4 70% 30% N/A N/A N/A N/A N/A

The Priceline Group Inc. OpenTable, Inc. 7/24/2014 2,529.0 2,935.0 51% 49% 37% 1% 0% 0% 10%

CoStar Group Inc. Apartments, LLC 4/1/2014 584.2 575.7 73% 27% 12% 2% 12% 0% 0%

Gartner Inc. Software Advice, Inc. 3/7/2014 103.2 100.6 73% 27% 1% 0% 18% 0% 8%

Endurance International Group Directi Web Technology Pvt. Ltd. and P.D.R. Solutions FZC 1/23/2014 109.8 113.0 81% 19% 7% 6% 7% 0% 0%

Groupon, Inc. Living Social Korea Inc. 1/2/2014 259.4 327.8 67% 33% 6% 0% 17% 0% 10%

Under Armour, Inc. MapMyFitness, Inc. 12/6/2013 150.0 143.4 85% 14% 3% 8% 3% 0% 0%

Internap Corporation iWeb Group Inc. 11/26/2013 145.8 111.7 63% 37% 14% 2% 20% 0% 1%

Yahoo! Inc. Tumblr, Inc. 6/20/2013 990.2 1,014.4 74% 26% 6% 2% 18% 0% 0%

DreamWorks Animation AwesomenessTV, Inc. 5/3/2013 128.5 131.5 90% 10% N/A N/A N/A N/A N/A

74% 26% 6% 2% 11% 0% 0%

Notes



29

PwC

December 2016

Internet


Amortization lives




Yahoo! Inc. Polyvore, Inc. 3 3 3

Zoopla Property Group Plc Ulysses Enterprises Limited 10 3 3

Under Armour, Inc. MyFitnessPal, Inc. 5 5 10

Zillow Group, Inc. Trulia, Inc. 2 - Indefinite 3 - 7 3 - 7

Yelp Inc. Eat24Hours.com, Inc. 4 5 7

Adobe Systems Incorporated Fotolia LLC N/A N/A N/A

Solera Holdings Inc. CAP Automotive Limited Indefinite 10 20

News Corporation Move, Inc. Indefinite N/A 15

Facebook, Inc. WhatsApp Inc. 5 5 7

Amazon.com Inc. Twitch Interactive, Inc. 5 5 5

Mail.Ru Group Limited VKontakte Ltd. 4 - 10 N/A 4 - 10

LinkedIn Corporation Bizo, Inc. 3 3 3

The Priceline Group Inc. OpenTable, Inc. 20 5 N/A

CoStar Group Inc. Apartments, LLC 13 1 10

Gartner Inc. Software Advice, Inc. 2 - 5 3 4 - 7

Endurance International Group Directi Web Technology Pvt. Ltd. and P.D.R. Solutions FZC 5 7 17

Groupon, Inc. Living Social Korea Inc. 5 2 5

Under Armour, Inc. MapMyFitness, Inc. 2 - 7 2 - 7 2 - 7

Internap Corporation iWeb Group Inc. 30 5 15

Yahoo! Inc. Tumblr, Inc. 6 6 6

Notes


30

PwC

December 2016

Appendix 4

IT Services deals (2013 - 2015)Goodwill and intangible asset benchmarking

31

PwC

December 2016

IT Services and Outsourcing


Summary




Average (3) 72.1% 27.9% 1.6% 4.1% 20.9% 0.3% 1.4%

Median (3) 72.9% 26.9% 0.3% 0.5% 16.3% 0.0% 1.1%

Count 10





Notes








32

PwC

December 2016






CDW Corporation Kelway Limited 8/1/2015 499.7 603.6 52% 48% 0% 0% 43% 0% 4%

Engility Holdings, Inc. TASC, Inc. 2/26/2015 663.1 1,099.4 67% 33% 0% 1% 31% 0% 2%

Cisco Systems, Inc. Metacloud, Inc. 9/29/2014 149.0 156.0 81% 19% 0% 15% 2% 1% 0%

Red Hat, Inc. Inktank Storage, Inc. 4/30/2014 152.2 142.2 91% 9% 0% 1% 5% 0% 3%

Convergys Corporation Stream Global Services, Inc. 3/3/2014 804.5 651.3 43% 57% 3% 0% 54% 0% 0%

Oracle Corporation Responsys, Inc. 2/6/2014 1,600.0 1,594.0 63% 37% N/A N/A N/A 1% N/A

Engility Holdings, Inc. Dynamics Research 1/28/2014 207.5 213.8 78% 22% 0% 0% 20% 0% 2%

Accenture plc Procurian Inc. 12/4/2013 0.4 0.4 83% 17% N/A N/A N/A N/A N/A

Econocom Group SA/NV Osiatis SA 10/31/2013 225.9 252.0 94% 6% 5% 0% 0% 0% 1%

IBM Corporation SoftLayer Technologies. Inc. 7/3/2013 1,977.0 1,896.0 68% 32% 4% 15% 13% 0% 0%

Notes



33

PwC

December 2016



Amortization lives




CDW Corporation Kelway Limited 1 2 13

Engility Holdings, Inc. TASC, Inc. N/A 15 15

Cisco Systems, Inc. Metacloud, Inc. N/A 3 5

Red Hat, Inc. Inktank Storage, Inc. Indefinite 5 5

Convergys Corporation Stream Global Services, Inc. 4 N/A 17

Engility Holdings, Inc. Dynamics Research N/A N/A 16

Econocom Group SA/NV Osiatis SA 10 3 - 7 20

IBM Corporation SoftLayer Technologies. Inc. 2 - 7 5 - 7 7

Notes


34

PwC

December 2016

Appendix 5

Semiconductor deals (2013 - 2015)Goodwill and intangible asset benchmarking

35

PwC

December 2016

Semiconductors


Summary




Average (3) 44.5% 55.5% 1.5% 31.1% 10.0% 7.8% 3.0%

Median (3) 51.6% 48.4% 0.3% 30.4% 7.6% 5.3% 0.1%

Count 23



Amortization life range (years) 1 - 10 1 - 15 2 - 15


Notes








36

PwC

December 2016

Semiconductors





MaxLinear, Inc. Entropic Communications, Inc. 4/30/2015 9.3 11.2 11% 89% 0% 24% 0% 65% 0%

Microsemi Corporation Vitesse Semiconductor Corporation 4/27/2015 365.2 359.9 72% 28% 0% 24% 4% 0% 0%

Cypress Semiconductor Corporation Spansion Inc. 3/12/2015 2,816.9 2,536.7 66% 34% 1% 20% 4% 8% 1%

Lattice Semiconductor Corporation Silicon Image, Inc. 3/9/2015 588.5 416.0 54% 46% 0% 31% 7% 8% 0%

Kulicke and Soffa Industries, Inc. Assembléon B.V. 1/9/2015 93.2 101.2 39% 61% 3% 40% 17% 0% 0%

RF Micro Devices Inc. TriQuint Semiconductor, Inc. 1/2/2015 5,254.4 4,430.7 46% 54% 1% 14% 28% 11% 1%

Veeco Instruments Inc. Solid State Equipment LLC 12/4/2014 145.5 131.2 39% 61% 1% 30% 26% 0% 3%

Inphi Corporation Cortina Systems, Inc. 10/3/2014 130.5 85.9 4% 96% 1% 83% 10% 2% 0%

Synaptics Incorporated Synaptics Display Devices KK 9/30/2014 467.6 386.1 38% 62% 0% 37% 12% 5% 8%

SolarCity Corporation Silevo, Inc. 9/23/2014 251.2 262.7 55% 45% 0% 0% 0% 0% 0%

Cirrus Logic, Inc. Wolfson Microelectronics plc 8/21/2014 469.5 425.1 59% 41% 0% 21% 3% 17% 0%

Atmel Corporation Newport Media Inc. 7/31/2014 143.1 119.5 74% 26% 0% 9% 3% 11% 2%

Analog Devices, Inc. Hittite Microwave Corporation 7/21/2014 2,433.3 2,013.9 67% 33% 0% 1% 31% 0% 1%

Exar Corporation Integrated Memory Logic Limited 5/29/2014 227.6 94.4 15% 85% 1% 59% 10% 9% 6%

Entegris, Inc. ATMI Inc. 4/30/2014 808.9 612.8 52% 48% 20% 0% 26% 0% 2%

Microchip Technology Incorporated Supertex Inc. 4/1/2014 391.8 223.3 60% 40% 0% 31% 8% 1% 0%

M/A-Com Technology Solutions Mindspeed Technologies Inc. 12/18/2013 233.5 157.4 7% 93% 0% 74% 8% 11% 0%

Maxim Integrated Products, Inc. Volterra Semiconductor Corporation 10/1/2013 615.0 456.3 38% 62% 1% 6% 0% 12% 42%

Microsemi Storage Solutions, Inc. Integrated Device Technology 7/12/2013 96.1 94.0 28% 72% 0% 68% 4% 0% 0%

Cadence Design Systems, Inc. Cosmic Circuits Pvt. Ltd 5/23/2013 61.2 67.5 62% 38% 0% 24% 8% 6% 0%

Cadence Design Systems, Inc. Tensilica, LLC 4/22/2013 346.1 317.8 56% 45% 1% 32% 10% 2% 0%

Emulex Corporation Endace Limited 3/28/2013 110.4 130.7 53% 47% 2% 32% 4% 10% 0%

Imagination Technologies Group Plc MIPS Technologies, Inc. 2/7/2013 63.9 73.3 32% 68% 4% 54% 10% 1% 0%

Notes



37

PwC

December 2016

Semiconductors


Amortization lives


Closed Trade Names / Dev Technology / Customer

Acquirer Target date Trade Marks Patents relationships

MaxLinear, Inc. Entropic Communications, Inc. 4/30/2015 N/A 8 15

Microsemi Corporation Vitesse Semiconductor Corporation 4/27/2015 10 4 - 6 9

Lattice Semiconductor Corporation Silicon Image, Inc. 3/9/2015 4 4.8 9.6

Kulicke and Soffa Industries, Inc. Assembléon B.V. 1/9/2015 N/A 3 - 5 4 - 7

RF Micro Devices Inc. TriQuint Semiconductor, Inc. 1/2/2015 3 4.8 4.6

Veeco Instruments Inc. Solid State Equipment LLC 12/4/2014 N/A 5 2 - 3

Inphi Corporation Cortina Systems, Inc. 10/3/2014 1.3 5.3 - 6.2 10

Synaptics Incorporated Synaptics Display Devices KK 9/30/2014 N/A 7 9

SolarCity Corporation Silevo, Inc. 9/23/2014 N/A 10 N/A

Cirrus Logic, Inc. Wolfson Microelectronics plc 8/21/2014 N/A 10 2

Atmel Corporation Newport Media Inc. 7/31/2014 8 8 8

Analog Devices, Inc. Hittite Microwave Corporation 7/21/2014 N/A 7 N/A

Exar Corporation Integrated Memory Logic Limited 5/29/2014 N/A 7 7

M/A-Com Technology Solutions Mindspeed Technologies Inc. 12/18/2013 5 5 - 8 10

Maxim Integrated Products, Inc. Volterra Semiconductor Corporation 10/1/2013 10 1 - 4 8

Microsemi Storage Solutions, Inc. Integrated Device Technology 7/12/2013 1 7 - 10 10

Cadence Design Systems, Inc. Cosmic Circuits Pvt. Ltd 5/23/2013 N/A 2 - 7 N/A

Cadence Design Systems, Inc. Tensilica, LLC 4/22/2013 N/A 7.7 8

Emulex Corporation Endace Limited 3/28/2013 N/A 8 8

Imagination Technologies Group Plc MIPS Technologies, Inc. 2/7/2013 7 - 8 7 - 15 5 - 6

Notes


38

PwC

December 2016

Appendix 6

Computer Networking and Hardware deals (2013 - 2015)Goodwill and intangible asset benchmarking

39

PwC

December 2016

Computer Networking and Hardware


Summary




Average (3) 51.7% 48.3% 2.2% 27.0% 17.0% 4.9% 1.6%

Median (3) 52.6% 47.4% 1.4% 26.9% 13.7% 5.3% 0.0%

Count 20



Amortization life range (years) 0.5 - Indefinite 3 - 10 1 - 10


Notes








40

PwC

December 2016






Infinera Corporation Transmode AB (publ) 8/12/2015 350.7 309.3 48% 52% 0% 30% 16% 7% 0%

Hewlett-Packard Company Aruba Networks, Inc. 5/18/2015 2,800.0 2,800.0 67% 33% N/A N/A N/A 5% N/A

ORBCOMM, Inc. SkyWave Mobile 1/1/2015 122.7 106.5 37% 63% 1% 6% 56% 0% 0%

Alphabet Inc. Skybox Imaging, Inc. 8/1/2014 478.0 457.0 85% 15% N/A N/A N/A N/A N/A

SanDisk Corp. Fusion-io, Inc. 7/23/2014 1,263.5 1,008.9 56% 44% 5% 27% 6% 6% 0%

Belden Inc. ProSoft Technology, Inc. 6/11/2014 105.0 92.7 60% 40% 5% 11% 24% 0% 0%

FireEye, Inc. nPulse Technologies, Inc. 5/9/2014 56.6 58.4 58% 42% 0% 17% 14% 11% 0%

QLogic Corp. Broadcom Corporation 3/13/2014 147.8 141.6 40% 60% 0% 41% 4% 15% 0%

Mitel Networks Aastra Technologies 1/31/2014 471.3 334.9 48% 52% 3% 46% 4% 0% 0%

Ixia Net Optics, Inc. 12/5/2013 187.7 178.8 59% 41% 2% 28% 9% 0% 2%

Microsemi Corporation Symmetricom Inc. 11/26/2013 312.7 130.5 15% 85% 3% 57% 25% 0% 0%

Extreme Networks Inc. Enterasys Networks, Inc. 10/31/2013 180.0 182.8 39% 61% 1% 25% 20% 2% 13%

Cisco Systems, Inc. WhipTail Technologies, Inc. 10/28/2013 351.0 385.0 73% 27% 0% 16% 0% 10% 1%

Honeywell International Inc. Intermec, Inc. 9/17/2013 607.0 607.0 58% 42% N/A N/A N/A N/A N/A

SanDisk Corp. SMART Storage Systems, Inc. 8/22/2013 305.1 284.3 41% 59% 3% 51% 3% 2% 0%

Stratasys Ltd. MakerBot Industries, LLC 8/15/2013 493.7 477.2 65% 35% 9% 9% 5% 11% 2%

ARRIS Group, Inc. Motorola Home 4/17/2013 2,336.2 1,792.7 25% 75% 1% 28% 38% 5% 2%

Flextronics International Ltd. Motorola Mobility 4/16/2013 178.9 5.8 49% 51% N/A N/A N/A N/A N/A

Netgear Inc. AirCard - Sierra Wireless 4/2/2013 140.0 123.0 43% 57% 0% 13% 33% 8% 3%

Oracle Corporation Acme Packet, Inc. 3/28/2013 2,112.0 1,854.0 69% 31% N/A N/A N/A 2% N/A

Notes



41

PwC

December 2016



Amortization lives




Infinera Corporation Transmode AB (publ) 0.5 5 8

ORBCOMM, Inc. SkyWave Mobile 5 5 - 10 10

SanDisk Corp. Fusion-io, Inc. 5 5 1.5

Belden Inc. ProSoft Technology, Inc. Indefinite 4 10

FireEye, Inc. nPulse Technologies, Inc. N/A 6 8

QLogic Corp. Broadcom Corporation N/A 5 8

Mitel Networks Aastra Technologies 4 6 7

Microsemi Corporation Symmetricom Inc. 1 9 9

Extreme Networks Inc. Enterasys Networks, Inc. 3 3 3

Cisco Systems, Inc. WhipTail Technologies, Inc. N/A 5 1

Stratasys Ltd. MakerBot Industries, LLC 11 5 1 - 10

ARRIS Group, Inc. Motorola Home 1 6 8

Netgear Inc. AirCard - Sierra Wireless N/A 4 8

Notes


42

PwC

December 2016

Appendix 7

Electronic Components deals (2013 - 2015)Goodwill and intangible asset benchmarking

43

PwC

December 2016

Electronic Components


Summary




Average (3) 61.7% 35.7% 1.7% 15.9% 16.8% 2.6% 1.3%

Median (3) 64.8% 34.5% 0.3% 12.7% 15.4% 0.0% 0.3%

Count 33



Amortization life range (years) 1 - 19.5 2 - 20 1 - 20


Notes








44

PwC

December 2016






Danaher Corp. Pall Corporation 8/31/2015 13,622.5 14,420.4 65% 35% N/A N/A N/A N/A N/A

Microchip Technology Inc. Micrel Inc. 8/3/2015 816.2 711.9 61% 39% 0% 25% 10% 3% 1%

Ametek Inc. AMETEK Surface Vision 7/6/2015 356.5 312.0 50% 50% 4% 12% 27% 0% 7%

Knowles Corporation Audience, Inc. 6/30/2015 123.3 73.6 65% 35% 0% 35% 0% 0% 0%

Sterling Bancorp. Hudson Valley Holding Corp. 6/30/2015 566.3 303.6 89% 11% N/A N/A N/A N/A N/A

TTM Technologies Inc. Viasystems Group, Inc. 5/31/2015 397.8 444.4 67% 33% 0% 1% 32% 0% 0%

Harris Corporation Exelis Inc. 5/29/2015 4,709.0 6,296.0 74% 26% 1% 2% 22% 0% 0%

Microsemi Corporation Vitesse Semiconductor 4/27/2015 383.2 359.9 72% 28% 0% 24% 4% 0% 0%

Lattice Semiconductor Corp Silicon Image, Inc. 3/9/2015 588.5 416.0 54% 46% 0% 30% 7% 8% 0%

Esterline Technologies Corp. Barco Federal Systems 1/31/2015 171.1 120.1 53% 47% 0% 44% 0% 0% 3%

Rogers Corporation Arlon, LLC 1/22/2015 158.5 136.4 63% 37% 1% 12% 24% 0% 0%

RF Micro Devices TriQuint Semiconductor, Inc. 1/2/2015 5,254.4 4,430.7 46% 54% 1% 14% 28% 11% 1%

TE Connectivity Ltd. Measurement Specialties Inc. 10/9/2014 1,484.0 1,632.0 66% 34% 0% 9% 24% 0% 1%

Consolidated Communications Enventis Corporation 10/8/2014 257.7 182.9 89% 11% 1% 0% 7% 0% 3%

Inphi Corporation Cortina Systems, Inc. 10/3/2014 130.5 85.9 4% 96% 1% 83% 10% 2% 0%

Oracle Corporation MICROS Systems, Inc. 9/5/2014 5,247.0 5,352.0 62% 38% N/A N/A N/A N/A N/A

NN Inc. Autocam Corporation, Inc. 8/29/2014 288.6 125.7 59% 41% 3% 1% 37% 0% 0%

Techne Corp. ProteinSimple 7/31/2014 300.1 311.8 43% 57% 12% 13% 32% 0% 0%

Analog Devices, Inc. Hittite Microwave 7/21/2014 2,431.0 2,023.5 67% 33% 0% 1% 31% 0% 1%

Stratasys Ltd. Solid Concepts Inc. 7/14/2014 185.4 161.8 77% 23% 1% 23% 0% 0% 0%

The ADT Corporation Reliance Protectron Inc. 7/8/2014 525.0 592.0 50% 50% 7% 0% 43% 0% 0%

Entegris, Inc. ATMI Inc. 4/30/2014 809.3 629.1 53% 47% 0% 19% 26% 0% 2%

Google Inc. (nka:Alphabet Inc.) Nest Labs, Inc. 2/7/2014 2,701.0 2,734.0 84% 16% N/A N/A N/A N/A N/A

Microsemi Corporation Symmetricom Inc. 11/26/2013 312.7 169.0 34% 66% 3% 44% 19% 0% 0%

CACI International Inc. Six3 Systems Inc. 11/15/2013 847.3 867.0 81% 19% 0% 0% 19% 0% 0%

Synaptics Inc. Validity Sensors, Inc. 11/7/2013 127.8 116.7 35% 65% 0% 16% 0% 49% 1%

Monsanto Company The Climate Corporation 11/1/2013 932.0 925.0 85% 15% 0% 0% 0% 0% 15%

Ametek Inc. Creaform Inc. 10/29/2013 120.0 120.0 15% 0% 0% 0% 0% 0% 0%

Arrow Electronics, Inc. ComputerLinks 10/27/2013 313.2 314.6 88% 12% 0% 0% 12% 0% 1%

Alexander & Baldwin, Inc. Grace Pacific Corporation 10/1/2013 240.7 96.1 94% 6% N/A N/A N/A N/A N/A

ABB Ltd. Power-One Inc. 7/25/2013 897.0 794.0 74% 26% 0% 14% 10% 0% 2%

Astronics Corporation PECO, Inc. 7/18/2013 136.0 138.5 50% 50% 3% 2% 44% 0% 0%

Littelfuse Inc. Hamlin Electronics L.P. 5/31/2013 160.4 73.6 69% 31% 9% 22% 0% 0% 0%

Notes



45

PwC

December 2016



Amortization lives




Microchip Technology Inc. Micrel Inc. N/A 10 5

Ametek Inc. AMETEK Surface Vision 2 - 14 15 - 20 18 - 20

TTM Technologies Inc. Viasystems Group, Inc. N/A 3 8.2

Harris Corporation Exelis Inc. 2 - 10 11 13

Microsemi Corporation Vitesse Semiconductor N/A 7 9

Lattice Semiconductor Corp Silicon Image, Inc. N/A 3 - 5 4 - 7

Esterline Technologies Corp. Barco Federal Systems 10 15 N/A

Rogers Corporation Arlon, LLC 3.2 5.7 6

RF Micro Devices TriQuint Semiconductor, Inc. 3 4.8 4.6

TE Connectivity Ltd. Measurement Specialties Inc. 1 9 18

Consolidated Communications Enventis Corporation 2 N/A 5 - 9

Inphi Corporation Cortina Systems, Inc. 5 5 - 8 10

NN Inc. Autocam Corporation, Inc. 15 15 5

Techne Corp. ProteinSimple 19.5 9.6 14.8

Stratasys Ltd. Solid Concepts Inc. 6.6 N/A 6.6

The ADT Corporation Reliance Protectron Inc. N/A N/A 7 - 20

Entegris, Inc. ATMI Inc. N/A 6 10

Google Inc. (nka:Alphabet Inc.) Nest Labs, Inc. N/A N/A N/A

Microsemi Corporation Symmetricom Inc. 1 9 9

CACI International Inc. Six3 Systems Inc. N/A N/A 14

Synaptics Inc. Validity Sensors, Inc. N/A 2 - 3 N/A

Monsanto Company The Climate Corporation N/A N/A 1

Arrow Electronics, Inc. ComputerLinks N/A N/A 9

ABB Ltd. Power-One Inc. N/A 4 11

Astronics Corporation PECO, Inc. 10 10 1.5 - 16

Littelfuse Inc. Hamlin Electronics L.P. 10 10 N/A

Notes


46

PwC

December 2016© 2016 PwC. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimesrefer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

Contacts:

Chad MorrisseyPwC | PrincipalOffice: +1 408 817 5755 | Mobile: +1 312 450 [email protected]

Sundar RamamurthyPwC | DirectorOffice: +1 408 817 3814 | Mobile: +1 972 983 [email protected]

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