software equity group flash report - sandhill · 2014. 4. 23. · software equity group is an...

Software Equity Group Flash Report

Software Equity Group Flash Report

Select M&A Transactions and Valuations and

Financial and Valuation Performance of 250+ Publicly Traded Software, SaaS and Internet

Companies by Product Category

• Industry leading boutique investment bank founded in

LEADERS IN SOFTWARE M&AIndustry leading boutique investment bank, founded in 1992, representing public and private software and internet companies seeking:

• Strategic exit• Growth capital

We Do Deals.

Growth capital• Buyout • Inorganic growth via acquisition• Buy and sell-side mentoring• Fairness opinions and valuationsFairness opinions and valuations

• Sell-side client revenue range: $5 - 75 million• Buy-side clients include private equity firms and

NASDAQ, NYSE and foreign exchange listed companies• Clients span virtually every software technology, product

category, delivery model and vertical market• Global presence providing advice and guidance to more

th 2 000 i t d bli i th h t USthan 2,000 private and public companies throughout US, Canada, Europe, Asia-Pacific, Africa and Israel

• Strong cross-functional team leveraging transaction, operating, legal and engineering experience

• Unparalleled software industry reputation and track record.

• Highly referenceable base of past clients

Copyright © 2014 by Software Equity Group, LLC

EXTENSIVE GLOBAL REACH

Current Sell-side Representation

• SEG currently represents software companies in the United States, Canada, France,

Recent Sell-side Representation

Germany, Australia & Saudi Arabia

• In addition to the countries listed above, SEG has recently represented software companies in the United Kingdom, France, Netherlands, Israel, and South Africa

SEG Research Distribution

• SEG’s Quarterly and Annual Software Industry Equity Reports and Monthly Flash Reports are q y p y pdistributed to an opt-in list of 50,000 public software company CEOs, software entrepreneurs, private equity managing directors, VCs, high tech corporate lawyers, public accountants, etc. in 76 countries.


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Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, our firm has guided and

ABOUT SOFTWARE EQUITY GROUPq y p y g gy , g

advised companies on five continents, including privately-held software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. We have represented public companies listed on the NASDAQ, NYSE, American, Toronto, London and Euronext exchanges. Software Equity Group also advises several of the world's leading private equity firms. We are ranked among the top ten investment banks worldwide for application software mergers and acquisitions.

Our value proposition is unique and compelling We are skilled and accomplished investment bankers with extraordinary software internet and technologyOur value proposition is unique and compelling. We are skilled and accomplished investment bankers with extraordinary software, internet and technology domain expertise. Our industry knowledge and experience span virtually every software product category, technology, market and delivery model, including Software-as-a-Service (Saas), software on-demand and perpetual license. We have profound understanding of software company finances, operations and valuation. We monitor and analyze every publicly disclosed software M&A transaction, as well as the market, economy and technology trends that impact these deals. We're formidable negotiators and savvy dealmakers who facilitate strategic combinations that enhance shareholder value.

P h t i t t th l ti hi ' b ilt d th i d t t ti j S ft E it G i k d t d b bli lPerhaps most important are the relationships we've built and the industry reputation we enjoy. Software Equity Group is known and respected by publicly traded and privately owned software and technology companies worldwide, and we speak with them often. Our Quarterly and Annual Software Industry Equity Reports are read and relied upon by more than thousands of industry executives, entrepreneurs and equity investors in sixty-one countries, and we have been quoted widely in such leading publications as The Wall Street Journal, Barrons, Information Week, The Daily Deal, The Street.com, U.S. News & World Report, Reuters, Mergers & Acquisitions, USA Today, Arizona Republic, Detroit Free Press, Entrepreneur Magazine, Softletter, Software Success, Software CEO Online and Software Business Magazine. g

To keep your finger on the pulse of the software equity markets, subscribe to our Annual and Quarterly Research Reports.

Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. For a confidential consultation without obligation, [email protected] , 2800-509) 858Beible, Director, Business Development (Kris please contact

CONTACT INFORMATION:

Software Equity Group, L.L.C.12220 El Camino Real, Suite 320San Diego, CA 92130www softwareequity comwww.softwareequity.comp: (858) 509-2800

The information contained in this Report is obtained from sources we believe to be reliable, but no representation or guarantee is made about the accuracy or completeness of such information, or the opinions expressed herein. Nothing in this Report is intended to be a recommendation of a specific security or company or intended to constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any security. Software Equity Group LLC may have an interest in one or more of the securities or companies discussed herein. Financial data provided by Capital IQ.


This Report may not be reproduced in whole or in part without the expressed prior written authorization of Software Equity Group, L.L.C.Software Equity Group registers each Report with the U.S. Copyright Office and vigorously enforces its intellectual property rights.

List of Commonly Used Acronyms

CRM Customer Relationship ManagementEBITDA Earnings before Interest, Taxes, Depreciation, and AmortizationERP Enterprise Resource PlanningEV Enterprise ValueFCF Free Cash FlowFORWARD Current EV / Next Four Quarters' Consensus Financial EstimatesNASDAQ National Association of Securities Dealers Automated Quotation SystemPLM Product Lifecycle ManagementPLM Product Lifecycle ManagementR&D Research and DevelopmentS&P Standard & Poor'sSaaS Software-as-a-ServiceSEG Software Equity GroupSG&A Selling, General, & AdministrativeSG&A Selling, General, & AdministrativeSW SoftwareTTM Trailing Twelve MonthYoY Year-over-YearYTD Year-to-date

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved

Additions:

AMBR SaaS ERP & Supply Chain

SEG Index ChangesCompany Ticker Index Category

A10 Networks ATEN SoftwareNetworking & Network Performance

Mgmt./Security

King Digital Entertainment KING Software Mobile Solutions/Content2U, Inc. TWOU SaaS Vertically Focused

Amber Road Inc

Everyday Health, Inc. EVDY Internet Services

Paylocity Holding Corp. PCTY SaaS Workforce ManagementCoupons.com, Inc. COUP Internet Ad Tech & Lead Generation

AMBR SaaS ERP & Supply ChainCastlight Health, Inc. CSLT SaaS Vertically Focused


Amber Road, Inc.

Table of Contents

SEG Software Index

Select Software Industry M&A Transactions

SEG SaaS Index

SEG Internet Index


SEG Software Index


SEG SaaS Index

SEG Internet Index


Select March 2014 Software Industry M&A Transactions

Date Announced Target

Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAMar-31-2014 Hill & Knowlton, Inc. RICE 5 LTD. $2.1 - - -Mar-31-2014 Wunderman, Inc. FusePump Limited $5.0 - - -Mar-31-2014 Stylus Media Group Limited Decoded Fashion - - - -Mar-31-2014 PCF Number 1, Inc. DivX LLC and Rovi Taiwan Ltd. - $75.0 - -Mar-31-2014 Regenersis Plc (AIM:RGS) Blancco Oy Ltd. $17.1 $82.7 4.8x -Mar-31-2014 Siris Capital Group, LLC Stratus Technologies Inc. $200.0 $352.0 1.8x 7.0xMar-31-2014 Vology Data Systems, Inc. Govplace, Inc., Irvine Division - - - -Mar-31-2014 Bottomline Technologies (de), Inc. (NasdaqGS:EPAY) Andera, Inc. - $48.1 - -Mar-31-2014 NTT Com Security AG (DB:AAGN) BDG GmbH & Co KG - - - -Mar-31-2014 Capita plc (LSE:CPI) Updata Infrastructure (UK) Limited - $133.3 - -Mar-31-2014 Twitter, Inc. (NYSE:TWTR) SecondSync Ltd - - - -Mar-31-2014 Turtle Entertainment GmbH ESS Agency - - - -Mar-31-2014 Spire Payments Ltd. Altius Plus LTD - - - -Mar-31-2014 Saaswedo S.A.S. Memobox $2.0 - - -Mar-31-2014 Jupiter Golfnetwork CO.,LTD. YourGolf Online Inc. - - - -Mar-31-2014 Twitter UK Ltd MESAGRAPH SAS - - - -Mar-30-2014 Chernoff Newman, LLC Carolina Public Relations/Marketing, Inc. - - - -Mar-29-2014 Soni Consultants, Inc. BrandWithSeo - - - -Mar-28-2014 PieNetworks Ltd. (ASX:PIE) Newzulu Limited - $8.4 - -Mar-28-2014 Private Investor(s) City Rewards Network - - - -Mar-28-2014 Upper Street Marketing, Inc. (OTCPK:UPPR) MagMo, Inc. - - - -Mar-28-2014 FilmTrack, Inc. Jaguar Consulting, Inc. - - - -Mar-28-2014 Dropbox, Inc. Readmill Network Limited - - - -Mar-28-2014 Private Investor(s) Media Rhythm Group Inc. - $0.4 - -Mar-28-2014 MCI Group Holding SA MCI Turkey - - - -Mar-28-2014 Airtel Kenya Limited Essar Telecom Kenya Limited, Subscribers, GSM licenses and Subscriber-Related Contracts - - - -Mar-28-2014 Safaricom Limited Essar Telecom Kenya Limited - - - -Mar-28-2014 Mercia Fund Management DMPortal Limited - - - -Mar-28-2014 BlueFocus International Limited Metta Communications Limited $21.8 $23.0 1.1x -Mar-28-2014 Vivendi Société Anonyme (ENXTPA:VIV) Groupe Telindus France S.A. - $130.6 - -Mar-28-2014 StockWeather.com,Inc. IMAGINEER INVESTMENT EDUCATION Co.,Ltd. - $0.7 - -Mar-28-2014 Comture Corporation (TSE:3844) Cosmonet Co., Ltd. $0.9 $0.1 0.1x -Mar-28-2014 SapientNitro Inc. Campfire - - - -Mar-28-2014 The Hut Group Ltd. Moo Ltd. - - - -Mar-27-2014 Yahoo Japan Corporation (TSE:4689) eAccess Ltd. $2,160.4 $3,184.6 1.5x -Mar-27-2014 I-Cubed, Inc. Akoya, Inc. - - - -Mar-27-2014 Deltek, Inc Sohnar Limited - - - -Mar-27-2014 Private Investor(s) Taylor Rafferty Associates, Inc. - - - -Mar-27-2014 Nomi Media Armor, Inc. - - - -Mar-27-2014 Vista Equity Partners PeopleAdmin, Inc. - - - -Mar-27-2014 Xtelesis Corporation TecCon, Inc. - - - -Mar-27-2014 Crexendo, Inc. (AMEX:EXE) Internet America, Inc. (OTCPK:GEEK) $7.9 $13.1 1.7x 7.9xMar-27-2014 Datavalet Technologies Inc. BOLDstreet Wireless, Canadian Guest Access Customer Contracts - - - -Mar-26-2014 Softbank Technology Corp. (TSE:4726) Cybertrust Japan Co.,Ltd. $16.7 $19.6 1.2x -Mar-26-2014 Ranhill Energy and Resources Berhad Symphony House Berhad (KLSE:SYMPHNY) $16.0 - - -Mar-26-2014 Peak Positioning Technologies Inc. (TSXV:PKK) Quick Technologies LLC - $2.5 - -Mar-26-2014 SAP AG (DB:SAP) Fieldglass, Inc. - $1,000.0 - -Mar-26-2014 ethology, Inc.; Tallwave Capital 29th Drive, LLC - - - -Mar-26-2014 Dyn Inc. Nettica Corporation - - - -Mar-26-2014 World Wide Web Ibercom, S.A. (CATS:ICOM) Digital Valley Technlogies, S.L. $0.3 - - -Mar-26-2014 Lithium Technologies, Inc. Klout, Inc. - $200.0 - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAMar-26-2014 Spotted.de Spotted.de UG, Prior to merger with bibflirt GmbH - - - -Mar-26-2014 XanEdu Publishing, Inc. SharedBook Inc. - - - -Mar-25-2014 WPP plc (LSE:WPP) XMKT Group $20.3 - - -Mar-25-2014 Talk Focus Sdn Bhd IEC Technology Co., Ltd. - $0.4 - -Mar-25-2014 Perma-Fix Environmental Services Inc. (NasdaqCM:PESI) CEE Opportunity Partners Poland SA (WSE:CEE) $0.0 - - -Mar-25-2014 Mtouche Technology Bhd (KLSE:MTOUCHE) mTouche (Cambodia) Co., Ltd. - - - -Mar-25-2014 Private Investor(s) 2020 Imaging LTD. $0.0 $0.1 30.6x -Mar-25-2014 Merchant Warehouse Inc. Opticard Payment Services Incorporated - - - -Mar-25-2014 Ebuzzing and Teads Teads Technology SAS - - - -Mar-25-2014 Lieferservice.de yd. yourdelivery GmbH - - - -Mar-25-2014 Dinamize Informática Ltda SoftMail - - - -Mar-25-2014 simpleview, inc. Software Management, Inc. - - - -Mar-25-2014 eGear USA, Inc. Maximize Technologies LLC - - - -Mar-25-2014 Blue River Interactive Group Inc. Mod Media - - - -Mar-24-2014 Advent International Corporation; ATP Private Equity Partners; The ATP GroNets Holding A/S - $3,140.1 - -Mar-24-2014 TELUS Corporation (TSX:T) Groupe Enode Inc - - - -Mar-24-2014 PlusServer AG Synergetic Ag, Hosting Activities - - - -Mar-24-2014 Modmacro, Inc. J. Gregory Studios, Inc. - - - -Mar-24-2014 Strategic Systems Consulting, Inc. 4t Networks, Inc. - - - -Mar-24-2014 InterCloud Systems, Inc. (NasdaqCM:ICLD) VaultLogix, LLC $12.0 $44.0 3.7x 9.8xMar-24-2014 Dell Inc. StatSoft, Inc. - - - -Mar-24-2014 The CHR Group, Inc. JVST Inc. - - - -Mar-24-2014 The Walt Disney Company (NYSE:DIS) Maker Studios, Inc. - $950.0 - -Mar-24-2014 Casas+Architects, Inc. Newforma, Inc. - - - -Mar-24-2014 COWI A/S Apsilon A/S $3.3 - - -Mar-24-2014 Kymanox LLC Freedom Labs, Inc. - - - -Mar-24-2014 Equistone Partners Europe Majority Stake in Performance Media, Blue $193.0 - - -Mar-24-2014 Netapsys Conseil SAS Ready Business System SA, Certain - - - -Mar-24-2014 IENA Digital SAS Kinoa SARL $1.7 - - -Mar-24-2014 Moneysupermarket.com Group PLC (LSE:MONY) OnTrees - - - -Mar-23-2014 Private Investor(s) Shanghai Huopu Cloud Computing Terminal - $32.1 - -Mar-23-2014 Complexus (Pty) Ltd. Lets Collaborate Consulting Services CC - - - -Mar-21-2014 Mentor Graphics Corp. (NasdaqGS:MENT) Berkeley Design Automation, Inc. - - - -Mar-21-2014 Ping Identity Corporation accells technologies Ltd. - - - -Mar-21-2014 Capita IT Services (BSF) Limited Network Technology Solutions (UK) Limited $17.5 - - -Mar-21-2014 Plan B Limited DR Group Ltd. - - - -Mar-21-2014 Equiniti Group Limited Pancredit Systems Limited - - - -Mar-21-2014 XO Group Inc. (NYSE:XOXO) Gojee LLC - - - -Mar-21-2014 ALSO Holding AG (SWX:ALSN) ALSO Cloud Oy $3.0 - - -Mar-21-2014 Systems In Motion, Inc. Zuna Infotech, Inc. - - - -Mar-21-2014 Eagle Eye Solutions Group PLC (AIM:EYE) 2ergo Group plc, Substantially All Assets $5.8 $7.4 1.3x -Mar-20-2014 Trinity Services Group, Inc. Swanson Services Corporation - - - -Mar-20-2014 JSC Baltnetos komunikacijos 8K UAB - - - -Mar-20-2014 WellTok Inc. Mindbloom, Inc. - - - -Mar-20-2014 NeuStar, Inc. (NYSE:NSR) .CO Internet S.A.S. - $109.0 - -Mar-20-2014 China Ningbo International Cooperation Co., Ltd. Chineseworldnet.com Inc, Substantially All Assets - $1.0 - -Mar-20-2014 Private Investor(s) ubitronix system solutions gmbh - - - -Mar-20-2014 SimilarGroup Ltd. TapDog - - - -Mar-20-2014 TIVIT Terceirização de Tecnologia e Serviços S/A Work Image Comércio e Serviços Ltda - - - -Mar-20-2014 Signativa Morphy Agência Interativa and FXP Labs - $2.6 - -Mar-20-2014 Beyondsoft Consulting, Inc. The Portal Group, Inc. - $23.0 - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAMar-20-2014 Lenovo Group Limited (SEHK:992) Unwired Planet, Inc., A Portfolio of Patents - - - -Mar-20-2014 Adenia Partners Ltd. DDP Outdoor Ltd. - - - -Mar-20-2014 Hyron Japan Co., Ltd. Jedat China Software Inc. $1.4 $0.8 0.6x -Mar-20-2014 CCV Holland B.V. BiedMeer B.V. - - - -Mar-20-2014 PayByPhone Limited Adaptis Solutions Limited - - - -Mar-19-2014 Vislink plc (AIM:VLK) Pebble Beach Systems Ltd. $9.4 $14.9 1.6x 6.9xMar-19-2014 uFluencer Group, Inc. Naomi Lennon Management, Inc. - - - -Mar-19-2014 BigHand Ltd. Esquire Innovations, Inc. - - - -Mar-19-2014 Palo Alto Networks, Inc. (NYSE:PANW) Cyvera Ltd - $200.0 - -Mar-19-2014 Just-Eat Canada Inc. MenuExpress.com - - - -Mar-19-2014 IgnitionOne, Inc. Knotice, Ltd. - - - -Mar-19-2014 EAC Product Development Solutions TerraXML Inc, Arbortext Business Unit - - - -Mar-19-2014 World Wide Web Ibercom, S.A. (CATS:ICOM) Más Móvil Telecom 3.0, S.A. $23.7 - - -Mar-19-2014 Pilani Soft Labs Pvt Ltd. YourBus - - - -Mar-19-2014 Barco NV (ENXTBR:BAR) X2O Media, Inc. $4.5 $18.8 4.2x -Mar-19-2014 Freelancer Technology Pty Limited zlecenia.przez.net sp. z o.o. - - - -Mar-19-2014 Autodesk, Inc. (NasdaqGS:ADSK) Creative Market Labs, Inc. - - - -Mar-19-2014 TCL Media Group Online Storage Auctions - - - -Mar-19-2014 Private Investor(s) Beauty Trend GmbH, Business in Spain and Netherlands - - - -Mar-18-2014 Inspired Energy plc (AIM:INSE) Simply Business Energy Limited - $1.0 - -Mar-18-2014 Liquidnet Holdings, Inc. Vega-Chi Limited - - - -Mar-18-2014 Lockheed Martin Corporation (NYSE:LMT) BEONTRA AG - - - -Mar-18-2014 Yandex N.V. (NasdaqGS:YNDX) KitLocate Ltd. - - - -Mar-18-2014 Hosting.com, Inc. Ntirety, Inc. - - - -Mar-18-2014 Horizon Minerals Corp. (OTCBB:HZNM) Boomchat Inc. - $14.7 - -Mar-18-2014 Lotame Solutions, Inc. AdMobius, Inc. - - - -Mar-18-2014 Thoma Bravo, LLC TravelCLICK, Inc. - $930.0 - -Mar-18-2014 Genesys Telecommunications Laboratories, Inc. Solariat, Inc. - - - -Mar-18-2014 PositiveSingles.com Myla Entertainment Ltd. - - - -Mar-18-2014 Versatile Communications, Inc. GreenPages, Inc., Distribution Services Division - - - -Mar-18-2014 TrustWave Holdings, Inc. Cenzic, Inc. - - - -Mar-18-2014 Cancom SE (XTRA:COK) DIDAS Business Services GmbH $77.9 - - -Mar-18-2014 Ensighten, Inc. TagMan Limited - - - -Mar-18-2014 Private Investor(s) Nihon Database Kaihatsu Co., Ltd. $4.9 - - -Mar-18-2014 Concert Care Healthcare Solutions Hare Communications - - - -Mar-18-2014 Clemenger BBDO (Adelaide) Pty Ltd LiTHe Pty Ltd - - - -Mar-18-2014 Your BackBrand Bambu - - - -Mar-18-2014 Dropbox, Inc. Zulip, Inc. - - - -Mar-18-2014 Classnk Nippon Kaiji Kyokai Napa Oy $25.6 $74.0 2.9x -Mar-18-2014 Groupe Steria SCA (ENXTPA:RIA) Beamap $2.8 - - -Mar-17-2014 Ernst & Young LLP BPM Specialists, Inc. - - - -Mar-17-2014 Adviso Consulting Inc. DIGITO Agency - - - -Mar-17-2014 Ebates Performance Marketing, Inc. Extrabux, Inc. - - - -Mar-17-2014 Flightglobal Innovata LLC - - - -Mar-17-2014 Everbridge, Inc. Vocal Ltd. - - - -Mar-17-2014 Bright Mountain Holdings Inc. (Florida Corporation) Welcome Home Blog - $0.2 - -Mar-17-2014 Jaywing plc (AIM:JWNG) Epiphany Solutions Limited - $30.0 - -Mar-17-2014 RP2 Limited Pepagon Limited - - - -Mar-17-2014 Sentry Marketing Group, LLC Feedback Plus Inc. - - - -Mar-17-2014 Aparca & Go, S.L. Parked Inside Solutions, SL - - - -Mar-14-2014 Gendai Agency Inc. (JASDAQ:2411) UandU $15.6 - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAMar-14-2014 Mamezou Holdings Co., Ltd. (TSE:3756) MENOX Co,Ltd. $9.1 $2.6 0.3x -Mar-14-2014 Fitch Group, Inc. Business Monitor International Ltd - - - -Mar-14-2014 Charterhouse Capital Partners LLP SkillSoft Limited - - - -Mar-14-2014 Cytta Corp. (OTCPK:CYCA) Visual Telecommunications Network, Inc. - - - -Mar-14-2014 Novantas, LLC PNT Marketing Services, Inc. - - - -Mar-14-2014 Numericable Group (ENXTPA:NUM) Société Française de Radiotéléphone SACA - - - -Mar-14-2014 Hello Vino, Inc. Corkbin, Inc. - - - -Mar-14-2014 Corvallis S.p.A. Wave Technologies S.r.l. - - - -Mar-14-2014 GfK SE (XTRA:GFK) PT Primera Indonesia - - - -Mar-13-2014 Nexstar Broadcasting Group, Inc. (NasdaqGS:NXST) Internet Broadcasting Systems, Inc. - $20.0 - -Mar-13-2014 Unity Technologies, Inc. Applifier Ltd. - - - -Mar-13-2014 Acuative Corporation Thrupoint, Inc., U.S. Division - - - -Mar-13-2014 Clear Payment Solutions LLC eKiosk Solutions LLC - - - -Mar-13-2014 Embarcadero Technologies, Inc. CA Technologies, CA ERwin Data Modeling Solution - - - -Mar-13-2014 Fair Isaac Corporation (NYSE:FICO) InfoCentricity, Inc. - - - -Mar-13-2014 MarketingMobileText, Inc. MarketingMobileText, Inc. Prior To Reverse Merger With Green Remanufacturing Solutions LLC - - - -Mar-13-2014 Sonda S.A. (SNSE:SONDA) CTIS Tecnologia S/A $358.0 $206.0 0.6x -Mar-13-2014 Rdio, Inc. Dhingana Inc. - - - -Mar-13-2014 Sustainable America Shared Earth, Inc. - - - -Mar-13-2014 WebMotors S.A. Compreauto - - - -Mar-13-2014 Artifex Software Inc. Picsel Group Limited, Smart Office Mobile Apps - - - -Mar-13-2014 thrive Echo Graphics Ltd - - - -Mar-12-2014 eBet Limited (ASX:EBT) Industry Data Online Pty Ltd $1.1 $0.6 0.6x -Mar-12-2014 novaCITYNETS Pte Ltd. novaCITYNETS International Pte Ltd - - - -Mar-12-2014 Xumanii International Holdings Corp (OTCPK:XUII) Amonshare.com - $1.5 - -Mar-12-2014 Varian Medical Systems, Inc. (NYSE:VAR) Velocity Medical Solutions, LLC - - - -Mar-12-2014 Rumble News Ltd. Blue-Goo - - - -Mar-12-2014 Advance Digital, Inc. MatchCraft, Inc. - - - -Mar-12-2014 Lockheed Martin Corporation (NYSE:LMT) Industrial Defender, Inc. - - - -Mar-12-2014 Cupcake Digital, Inc. zuuka Group GmbH - - - -Mar-12-2014 The Carlyle Group LP (NasdaqGS:CG) eCommerce Industries, Inc. - - - -Mar-12-2014 GearyLSF Group Red Bricks Media, Inc. - - - -Mar-12-2014 Brand New Media Pty Ltd. Brand New Media Us Inc. - - - -Mar-12-2014 Betley Whitehorne Ltd. Image Group Limited - - - -Mar-12-2014 Volaris Group Inc. PLANit Sweden AB - - - -Mar-12-2014 REFORM Creative Limited P² marketing ltd - - - -Mar-11-2014 Sysxnet Limited SaaS Markets, LLC - - - -Mar-11-2014 Computex Inc. ENet Solutions LLC - - - -Mar-11-2014 Gartner Inc. (NYSE:IT) Software Advice, Inc. - - - -Mar-11-2014 Innobec Technologies inc. Dium Solution Inc. - - - -Mar-11-2014 Raine Ventures LLC The Immediate Edge $0.5 $1.4 2.7x -Mar-11-2014 Ian Martin Limited Fitzii, Inc. - - - -Mar-11-2014 ShipXpress, Inc. FreightCar America Inc., Rail Fleet Management Software Services Business - - - -Mar-11-2014 500px Inc. Authintic Analytics Technologies Inc. - - - -Mar-11-2014 Omnicom Media Group Holdings Inc. Mobile5 Media Ltd - - - -Mar-11-2014 Bayshore Solutions, Inc. CCF Consulting Inc. - - - -Mar-11-2014 Automation Inc MobiMagic LLC - - - -Mar-11-2014 EPAM Systems, Inc. (NYSE:EPAM) Netsoft USA, Inc. - - - -Mar-10-2014 Pivotal Payments, Inc. Capital Processing Network LLC - - - -Mar-10-2014 Kabam, Inc. Phoenix Age, Inc. - - - -Mar-10-2014 HGGC, LLC Serena Software, Inc. $183.0 - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAMar-10-2014 PricewaterhouseCoopers LLP, Canada, Investment Arm Biond Consulting Inc. - - - -Mar-10-2014 Rochester Optical Manufacturing Co. Venture Glass LLC - - - -Mar-10-2014 Adknowledge, Inc. Giant Media LLC - - - -Mar-10-2014 The CHR Group, Inc. Raker Goldstein & Co., Inc. - - - -Mar-10-2014 Coms PLC (AIM:COMS) Smarter Mobile UK Limited $0.4 $0.4 0.9x -Mar-10-2014 Designworks Group Limited The Church Limited - - - -Mar-10-2014 Sword Group SE (ENXTPA:SWP) Mobile Productivity Ltd. and 1.618 and Idaho - - - -Mar-10-2014 Prime Focus Technologies Private Limited Sample Digital Holdings, LLC $4.2 $12.5 3.0x 13.1xMar-10-2014 Arnoldo Mondadori Editore SpA (BIT:MN) aNobii Limited - - - -Mar-10-2014 DoubleMap, LLC TapRide, LLC - - - -Mar-10-2014 Ross Video Limited Automated Data Systems Inc. - - - -Mar-10-2014 The Priceline Group Inc. (NasdaqGS:PCLN) Qlika Ltd. - $3.0 - -Mar-10-2014 IDMWORKS, Inc. Identity Forge, LLC - - - -Mar-10-2014 Business Connexion Group Limited (JSE:BCX) Ultimate Software (Botswana) (Pty) Ltd. - - - -Mar-10-2014 LLORENTE & CUENCA Madrid, S.L. CR Comunicaciones - - - -Mar-10-2014 The Big Cat Group Limited House of Experience - - - -Mar-10-2014 Private Investor(s) Tipik S.A. - - - -Mar-09-2014 Iliad SA (ENXTPA:ILD) Bouygues Telecom SA, Portfolio of 2G/3G/4G Frequencies and Mobile Telephony Network - $2,496.4 - -Mar-09-2014 Cloudstream Media Inc. JadooTV, Inc. and Pearl Media Group Ltd. and Altair Technologies Pvt. Ltd. - - - -Mar-07-2014 InfoTech Enterprises America Inc. Softential, Inc. $20.0 - - -Mar-07-2014 Live Nation Labs North YourTrove, Inc. - - - -Mar-07-2014 DocuSign, Inc. Comprova.com Informatica S.A. - - - -Mar-07-2014 RSP & Associates Quest Discovery Services, Inc. - - - -Mar-06-2014 Tribal Group plc (LSE:TRB) Sky Software Pty Limited - $19.1 - -Mar-06-2014 Zayo Colocation, Inc. CoreXchange, Inc. - $17.5 - -Mar-06-2014 Beyondsoft Corporation (SZSE:002649) Shanghai Hongzhi Information Technologies Corp. $8.1 $14.7 1.8x -Mar-06-2014 MDI Achieve, Inc. Signature Solutions LLC - - - -Mar-06-2014 Dydacomp Development Corporation FreeportWeb, Inc. - - - -Mar-06-2014 Spotify Limited The Echo Nest Corporation - - - -Mar-06-2014 Publicis, Inc. Publicis Hawkeye - - - -Mar-06-2014 Vobile, Inc. Blayze LLC - - - -Mar-06-2014 Arrow Performance LLC ServiceKick - - - -Mar-06-2014 Comcast Corporation (NasdaqGS:CMCS.A) FreeWheel Media, Inc. - $360.0 - -Mar-06-2014 Axium XTS Corporation Project Trek - - - -Mar-06-2014 KeenOn Fashion Zitra GmbH - - - -Mar-06-2014 RTGI SAS Trendy Buzz SAS $2.8 - - -Mar-06-2014 Ticketea Telémaco Sistemas, S.L. - - - -Mar-06-2014 Allgeier IT Solutions GmbH DIGIDOK GmbH, Essential Parts of Business Around smart.CAPTURE - - - -Mar-05-2014 Datacom Group Limited Origen Technology Limited - - - -Mar-05-2014 HomeAway, Inc. (NasdaqGS:AWAY) Glad to Have You, Inc. - - - -Mar-05-2014 KORE Telematics Inc. Jazz Wireless Data Inc. - - - -Mar-05-2014 VacationRoost Group Inc. LeisureLink, Inc. - - - -Mar-05-2014 L-3 Communications Holdings Inc. (NYSE:LLL) L-3 Data Tactics - - - -Mar-05-2014 Flipboard, Inc. Zite, Inc. - - - -Mar-05-2014 Triton Distribution Systems, Inc. (OTCPK:TTDZ); Green Cures Inc. FutureMarijuana.com - - - -Mar-05-2014 Constellis Group Inc. Strategic Social LLC - - - -Mar-05-2014 Yahoo! Inc. (NasdaqGS:YHOO) SteamFunk Labs Inc. - - - -Mar-05-2014 Cachet Financial Solutions, Inc. DeviceFidelity, Inc., DGS Mobile Platform Assets - $2.1 - -Mar-05-2014 Private Investor(s) Press Ahead (Media, Marketing & Communications) Limited - - - -Mar-05-2014 Sales Performance International, LLC The Complex Sale, Inc. - - - -Mar-05-2014 Altico Advisors LLC Paradigm Business Solutions, Inc. - - - -

Acquirer




Target TTM Revenue

($mm)

Enterprise Value

($mm)EV/

RevenueEV/

EBITDAMar-05-2014 Brief To Event Solutions Ltd. Venue Team Limited - - - -Mar-05-2014 Beijing Lanxum Technology Co., Ltd. (SZSE:300010) Beijing Nasoft Co., Ltd. - $65.3 - -Mar-05-2014 Heise Zeitschriften Verlag GmbH & Co. KG BestBoyZ UG (haftungsbeschränkt) - - - -Mar-05-2014 Highstreet IT Solutions, LLC Computer Network Solutions, LLC $20.0 - - -Mar-04-2014 Isobar France, Inc. Lesmobilizers SAS - - - -Mar-04-2014 Enghouse Systems Limited (TSX:ESL) IT Sonix AG - $9.6 - -Mar-04-2014 Jack Henry & Associates Inc. (NasdaqGS:JKHY) Banno, LLC - - - -Mar-04-2014 AnalytixInsight Inc. (TSXV:ALY) OneUp Insights Inc. - $2.0 - -Mar-04-2014 KPMG LLP Cynergy Systems, Inc. - - - -Mar-04-2014 Tagboard TVinteract, L.L.C. - - - -Mar-04-2014 Mitel Networks Corporation (NasdaqGS:MITL) Computer Telephony Solutions, Inc. - - - -Mar-04-2014 FlashNotes, Inc. Moolaguides, LLC - - - -Mar-04-2014 Karelia Software LLC Potion Factory LLC - - - -Mar-04-2014 Funeralhomes.com LLC Cremations.com - - - -Mar-04-2014 One Agency CBA Design & Marketing - - - -Mar-04-2014 Beats Music, LLC Topspin Media, Inc. - - - -Mar-04-2014 Mozido, LLC StickyStreet Inc. - - - -Mar-04-2014 Claranet Limited GRITA SAS - - - -Mar-04-2014 ZeroBlock, LLC RTBTC, LLC - - - -Mar-04-2014 TalentSoft SA PeopleXS Holding BV - - - -Mar-03-2014 RXP Services Limited (ASX:RXP) Insight4 Pty Ltd. - $4.8 - -Mar-03-2014 St Ives plc (LSE:SIV) Realise Holdings Limited - $66.9 - 14.8xMar-03-2014 Glantus Limited Castleton Technology plc, QAD Software Consultancy Business $1.5 $0.3 0.2x -Mar-03-2014 Cubic Defense Applications, Inc. Intific, Inc. $14.0 - - -Mar-03-2014 OverDrive, Inc. Teachers Notebook, LLC - - - -Mar-03-2014 TELUS Health Solutions Inc. Med Access, Inc. - - - -Mar-03-2014 Levick Strategic Communications, L.L.C. Purple Nation Solutions, Inc. - - - -Mar-03-2014 Shutterstock, Inc. (NYSE:SSTK) WebDAM, Inc. - - - -Mar-03-2014 Securus Technologies, Inc. Telerus, Inc. - - - -Mar-03-2014 Yardi Systems, Inc. Centershift, Inc. - - - -Mar-03-2014 Barc Communications, Inc. Trepoint, Inc. - - - -Mar-03-2014 IT Link (ENXTPA:ITL) NRX SARL - - - -Mar-03-2014 Jobindex A/S (CPSE:JOBNDX) IT-Jobbank A/S and StepStone A/S - - - -Mar-03-2014 The Ferraro Group Tangerine Communications, LLC - - - -Mar-03-2014 Neurons Inc ApS Sands Research, Inc. - - - -Mar-03-2014 Travel Weekly Group Limited Kingley Event Management Limited - - - -Mar-03-2014 softgarden e-recruiting GmbH HR New Media GmbH - - - -Mar-03-2014 Numen Europe SA CIMAIL Solutions SAS $5.5 - - -Mar-03-2014 Desire2Learn Incorporated JES & Co., Achievement Standards Network - - - -Mar-03-2014 camLine GmbH Process Relations GmbH - - - -Mar-03-2014 Encore Business Solutions Inc. Candlewest Systems Group Ltd. - - - -Mar-03-2014 Fairway Outdoor Advertising, LLC Mashburn Outdoor Advertising, Outdoor Advertising Assets - - - -

Acquirer


SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Software Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue

Growth EV/ RevenueEV/

EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Software Index $1,933.7 $2,647.1 $737.8 71.1% 19.6% 7.0% 3.4x 14.2x 2.9x 11.2x 1.9% Billing & Service Management $890.7 $945.1 $349.0 57.4% 18.5% 3.6% 2.6x 9.9x 2.3x 8.6x -6.6% Business Intelligence $1,211.7 $910.8 $397.6 80.8% 8.6% 11.8% 3.6x 15.1x 2.6x 13.6x -16.7% Development Platforms $2,621.9 $2,654.1 $1,142.8 76.7% 19.6% -0.3% 2.5x 11.8x 2.9x 8.6x 0.9% Engineering & PLM $4,507.2 $4,201.2 $1,156.4 84.1% 20.7% 6.2% 3.2x 14.2x 3.1x 11.2x -5.0% Enterprise Resource Planning $7,649.3 $8,249.0 $2,228.0 72.6% 29.0% 2.7% 3.7x 12.8x 3.6x 11.2x 8.5% Financial & Accounting $1,933.7 $2,647.1 $737.8 54.7% 25.9% 8.5% 3.7x 15.5x 3.6x 11.0x -2.6% Gaming $2,680.3 $2,701.3 $2,282.1 64.2% 19.0% 3.9% 1.8x 11.6x 1.6x 9.8x 19.7% Healthcare $1,283.9 $1,617.0 $560.6 54.6% 15.2% 3.0% 2.6x 15.2x 2.4x 11.0x 10.8% IT Conglomerates $182,413.0 $169,893.0 $83,433.0 71.5% 34.5% 2.0% 3.4x 9.5x 3.2x 8.6x 8.5% Mobile Solutions/Content $838.6 $732.6 $279.6 56.6% 3.7% 24.9% 3.5x 19.3x 2.6x 13.2x 4.7% Networking & Network Performance Managemen $1,864.1 $1,666.7 $431.7 71.1% 7.5% 7.0% 3.0x 14.2x 2.8x 11.8x 0.6% Security $1,453.2 $1,335.5 $225.9 76.6% -0.1% 16.7% 5.0x 9.1x 4.4x 18.3x 10.5% Storage, Data Mgmt & Integration $12,224.1 $8,150.0 $4,582.0 71.5% 24.2% 2.0% 2.8x 9.5x 2.7x 8.3x 1.9% Supply Chain Management & Logistics $1,778.6 $1,700.9 $250.1 61.9% 26.8% 14.7% 5.9x 22.0x 5.3x 18.4x 5.0% Systems Management $10,298.2 $9,439.8 $2,226.5 85.9% 25.8% 13.0% 4.8x 18.8x 4.3x 13.6x 3.8% Vertical - Finance $3,873.4 $4,310.7 $874.2 44.0% 27.0% 8.2% 4.3x 13.1x 4.0x 11.7x -4.4% Vertical - Other $1,411.8 $1,553.2 $416.6 51.9% 14.6% 21.2% 3.1x 15.4x 2.8x 16.8x -13.6%

Category Name

TTM Revenue Growth 7.9%TTM EBITDA Growth -21.4%TTM Earnings Growth -36.3%Gross Profit Margin 69.0%EBITDA Margin 18.6%Net Income Margin -11.7%SG&A Expenses as a % of Total Revenue 57.4%R&D Expenses as a % of Total Revenue 18.5%

Current Ratio 2.4Quick Ratio 2.2Cash as Percent of Market Cap 9.8%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 31Working Capital to TTM Operating Expense Ratio 0.5x

Levered FCF Margin 8.5%Cash from Operations Growth (YoY) 16.5%Cash from Investing Growth (YoY) -12.9%Cash from Financing Growth (YoY) 86.8%Levered FCF Growth (YoY) 14.3%

Copyright © 2014 by Software Equity Group, L.L.C., All Rights Reserved April 2014 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

-8%

-6%

-4%

-2%

0%

2%

4%

6%SEG SW Index Software Stock Market Return: January - March 2014

DOW S&P NASDAQ SEG SW Index

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG SaaS Index: All Categories

Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG SaaS Index $1,118.2 $995.9 $148.7 68.5% -4.5% 28.2% 8.0x 45.6x 6.5x 26.2x -2.4% CRM & Marketing $712.9 $605.4 $179.6 71.2% -0.7% 26.0% 3.2x 366.2x 2.7x 26.2x 1.1% ERP & Supply Chain $1,118.2 $995.9 $140.9 68.5% -4.5% 34.8% 8.0x 25.2x 6.8x 30.6x -3.6% Vertically Focused $1,418.8 $1,385.7 $204.7 60.7% 11.5% 38.4% 8.5x 45.6x 6.5x 15.5x -2.4% Workforce Management $1,852.1 $1,806.5 $148.7 60.6% -5.7% 26.3% 11.1x 333.4x 7.5x 35.0x -6.8% SaaS Other $924.8 $952.3 $130.0 70.4% -12.9% 28.2% 6.7x 36.1x 5.5x 19.8x -1.9%

Category Name

TTM Revenue Growth 28.2%TTM EBITDA Growth -21.4%TTM Earnings Growth -36.3%Gross Profit Margin 68.5%EBITDA Margin -4.5%Net Income Margin -11.7%SG&A Expenses as a % of Total Revenue 57.4%R&D Expenses as a % of Total Revenue 18.5%

Current Ratio 2.4Quick Ratio 2.2Cash as Percent of Market Cap 9.8%Avg Days Outstanding: Accounts Receivable 62Avg Days Outstanding: Accounts Payable 31Working Capital to TTM Operating Expense Ratio 0.5x






-10%

-5%

0%

5%

10%

15%SEG SaaS Index Stock Market Return: January - March 2014

DOW S&P NASDAQ SEG SaaS

SEG Software Index


SEG SaaS Index

SEG Internet Index


SEG Internet Index: All Categories

Category Name Market Cap EVTTM

Revenue

TTM Gross

Margin

TTM EBITDA Margin

TTM Revenue


EBITDAForward

EV/ Revenue

Forward EV/

EBITDA YTDSEG Internet Index $2,540.2 $2,131.5 $514.7 66.1% 10.2% 18.1% 3.4x 22.2x 3.2x 16.0x -2.7% Ad Tech & Lead Generation $1,803.6 $1,808.5 $514.1 65.7% 7.1% 25.7% 3.3x 22.0x 2.3x 14.6x -10.9% Commerce $575.1 $465.8 $419.8 40.7% 9.6% 15.2% 1.2x 15.5x 1.4x 10.9x -6.5% Content & Media $3,477.7 $3,392.4 $515.3 49.6% 13.2% 7.9% 3.3x 23.5x 3.4x 17.4x -3.0% Gaming $3,276.75 $2,454.6 $805.6 72.3% 32.9% 11.2% 3.4x 8.3x 3.2x 9.3x -2.5% Infrastructure $703.63 $533.1 $276.7 62.3% 5.6% 8.6% 1.5x 19.8x 1.6x 11.4x 1.1% Services $861.74 $820.1 $197.5 72.9% 7.1% 52.7% 3.8x 35.3x 3.2x 25.2x -5.7% Social $7,394.64 $7,178.4 $664.9 66.6% 10.9% 57.2% 13.1x 44.6x 9.5x 32.3x 3.2% Travel $5,175.42 $4,642.9 $868.4 83.0% 16.9% 21.0% 5.6x 22.4x 6.1x 21.2x 6.9%

TTM Revenue Growth 25.7%TTM EBITDA Growth 9.5%TTM Earnings Growth 17.5%Gross Profit Margin 65.7%EBITDA Margin 7.1%Net Income Margin 1.8%SG&A Expenses as a % of Total Revenue 39.8%R&D Expenses as a % of Total Revenue 14.5%

Current Ratio 2.6Quick Ratio 2.5Cash as Percent of Market Cap 13.9%Avg Days Outstanding: Accounts Receivable 36Avg Days Outstanding: Accounts Payable 42Working Capital to TTM Operating Expense Ratio 0.6






-8%

-6%

-4%

-2%

0%

2%

4%

6%SEG Internet Index Stock Market Return: January - March 2014

DOW S&P NASDAQ SEG Internet Index

To download the remaining portions of Software Equity Group’s complimentary Software Industry Flash Report, which includes the complete list of software M&A transactions as well as detailed financial and market performance of more than 250 publicly traded software, SaaS, and Internet companies, sorted across nearly 30 product categories, visit our website: http://www.softwareequity.com/research_flash_reports.aspx

software equity group flash report - sandhill · 2014. 4. 23. · software equity group is an...

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