software equity group january 2014 flash...

Janu

ary

2014 Software Equity Group

Flash ReportSelect 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 in1992, 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 © 2013 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 technologydomain 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 publiclytraded 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 (Krisplease 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�©�2013�by�Software�Equity�Group,�L.L.C.,�All�Rights�Reserved

Removals:

Misc. Change:

Velti Plc Software Mobile-Company Ticker Index Category

ValueClick, nka Conversant, Inc.

SEG Index Changes

CNVR Internet Ad Tech & Lead Generation

Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved

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 December 2013 Software Industry M&A Transactions

DateAnnounced Target

Target TTM Revenue

($mm)

EnterpriseValue

($mm)EV/

RevenueEV/

EBITDADec-31-2013 Belgische Distributiedienst NV Agilys SA - - - -Dec-31-2013 Private Investor(s) Algo 'Tech Informatique $1.4 - - -Dec-31-2013 MindMatrix, Inc. Brainstorm SMS Services LLC - - - -Dec-31-2013 DIRECTV MDU, LLC Certain Assets - $12.5 - -Dec-31-2013 WanderWe Crashworks, Inc - - - -Dec-31-2013 Deluxe Corp. (NYSE:DLX) Destination Rewards, Inc. - - - -Dec-31-2013 Total Server Solutions L.L.C. Hands-on Technologies, LLC - - - -Dec-31-2013 Mobee Inc. Kickscout Inc. - - - -Dec-31-2013 XAPT Hungary Kft. LLP Dynamics Bulgaria $6.8 - - -Dec-31-2013 LikeBright Inc. matchmate, inc. - - - -Dec-31-2013 Mondola Midsol Media - - - -Dec-31-2013 HomeFinder.com, LLC Open Home Pro, Inc. - - - -Dec-31-2013 DNXcorp SA (ENXTPA:DNX) Quintonic, SAS - $0.7 - -Dec-31-2013 Quick Left, Inc. Sprint.ly, Inc. - - - -Dec-31-2013 The SAVO Group Ltd. StoryQuest Inc. - - - -Dec-31-2013 4C Insights The Echo System Corp. - - - -Dec-31-2013 SkyPicker.com s.r.o. WhichAirline.com - - - -Dec-30-2013 FireEye, Inc. (NasdaqGS:FEYE) Mandiant, LLC - $843.5 - -Dec-30-2013 AASTOCKS.com Ltd. SOLUTIONS LAB PTE. LTD. - $7.2 - -Dec-30-2013 Healthcare Data Solutions LLC StratCenter.com - - - -Dec-30-2013 PTC Inc. (NasdaqGS:PTC) ThingWorx, Inc. - $130.0 - -Dec-27-2013 Beijing Baidu Netcom Science and Technology Co., Ltd. Beijing Huanxiang Zongheng Chinese Literature Website Co., Ltd. - $31.6 - -Dec-27-2013 Private Investor(s) Plus One Co., Ltd. - $0.0 - -Dec-27-2013 Springwater Capital, LLC Sarenet S.A. $26.1 $24.7 0.9x -Dec-27-2013 brightONE GmbH Telenet GmbH Kommunikationssysteme - - - -Dec-26-2013 Compagnie Financière du Forum S.A.S Edysis - - - -Dec-26-2013 Properati Imóvel do Proprietário, Produtos E Serviços Eminformática E. Comunicação Ltda. - - - -Dec-26-2013 Knoodle Sales & Marketing Corp. Kluger Media Group LLC - - - -Dec-26-2013 ISB Corporation (TSE:9702) Sapporo System Science Co., Ltd. $9.2 - - -Dec-25-2013 Fortissimo Capital Eshbel Technologies Ltd. $17.2 $55.1 3.2x -Dec-24-2013 Thomas ODonnell Pty Ltd. Cosmic Fantasia - - - -Dec-24-2013 The Prepaid Company (Pty) Ltd Retail Mobile Credit Specialists Pty Limited - $32.8 - -Dec-24-2013 MadeIT Inc. TechColumbus, Inc., Platform Lab Division - - - -Dec-24-2013 CYBRiDGE Corporation Trenders, Inc., Kirenavi Business $0.3 - - -Dec-24-2013 DNA Digital PTY LTD zen10 Australia Pty Ltd - - - -Dec-24-2013 Qkos Services Ltd. ZeroBlock, LLC - - - -Dec-23-2013 Aqua Ad Public Company Limited Aqua Corporation Public Company Limited, Billboards and Advertising Signs - $4.7 - -Dec-23-2013 Upland Software, Inc. Clickability, Inc. - $12.7 - -Dec-23-2013 HireVue, Inc. CollaboRATE, Inc. - - - -Dec-23-2013 The Descartes Systems Group Inc (TSX:DSG) Compudata AG - $17.9 - -Dec-23-2013 Tribune Company (OTCPK:TRBA.A) Gracenote, Inc. - $170.0 - -Dec-23-2013 The Descartes Systems Group Inc (TSX:DSG) Impatex Freight Software Limited - $8.3 - -Dec-23-2013 Tektronix Texas, LLC Newfield Wireless Inc. - - - -Dec-23-2013 Dyn Inc. ReadyStatus LLC - - - -Dec-23-2013 Cecurity.com Société Anonyme (ENXTPA:MLCEC) STS Group. - - - -Dec-23-2013 Dematic Corp. Upturn Solutions, Inc. - - - -Dec-21-2013 D-Link (India) Limited (BSE:533146) TeamF1 Networks Private Limited - $2.6 - -Dec-20-2013 REA Group Limited (ASX:REA) 1Form Online Pty Ltd - $13.4 - -Dec-20-2013 Cookpad Inc. (TSE:2193) Allthecooks, LLC - - - -Dec-20-2013 Acquire Asia Pacific Pty Ltd Animation1 Inc. - - - -Dec-20-2013 BigAir Group Limited (ASX:BGL) Anittel Communications Pty Ltd. - $5.8 - -

Acquirer




Target TTM Revenue

($mm)

EnterpriseValue

($mm)EV/

RevenueEV/

EBITDADec-20-2013 BravoFly SA Blue SARL - - - -Dec-20-2013 T-Systems International GmbH brightONE GmbH, Healthcare Business $27.4 - - -Dec-20-2013 Hong Kong Television Network Limited (SEHK:1137) China Mobile Hong Kong Corporation Limited - $18.3 - -Dec-20-2013 ClearOne, Inc. (NasdaqCM:CLRO) Dialcom Networks, LLC, Spontania Business - $5.0 - -Dec-20-2013 Vitec Software Group AB (OM:VIT B) FD Systems Oy - $16.4 - -Dec-20-2013 Answers Corporation ForeSee Results, Inc. - - - -Dec-20-2013 Emerald Expositions, Inc. George Little Management, LLC - $335.0 - -Dec-20-2013 Yatego GmbH Gimahhot GmbH - - - -Dec-20-2013 DoubleBeam Inc. GoPago, Inc. - - - -Dec-20-2013 HKT Trust and HKT Limited (SEHK:6823) Hong Kong CSL Limited $992.8 $2,425.0 2.4x 5.7xDec-20-2013 Oniva Online Group Europe AB (publ) (OM:ONG) Jamtport webbhotell AB - - - -Dec-20-2013 Mindshare A/S Media Arts System and Services Company, Inc. - - - -Dec-20-2013 Aegon UK plc Novia Investment Services Limited $27.8 - - -Dec-20-2013 Oracle Corporation (NYSE:ORCL) Responsys, Inc. $194.3 $1,596.7 8.2x 119.7xDec-20-2013 Rev Social Malaysia Sdn Bhd Rev Social International Sdn Bhd - - - -Dec-20-2013 Great Hill Partners, LLC Symmetry Corporation and SymSoft Corporation - - - -Dec-19-2013 Lager-Vergleich.com 1337 UGC GmbH - - - -Dec-19-2013 International Business Machines Corporation (NYSE:IBM) Aspera, Inc. - - - -Dec-19-2013 White Data Property Trust Brisbane Data Centre Site - - - -Dec-19-2013 Group Santiane Courtage Street SAS - - - -Dec-19-2013 Dealertrack Technologies, Inc. (NasdaqGS:TRAK) Dealer.com, Incorporated - $994.3 - -Dec-19-2013 zedIT Solutions Inc. Encaptis Business Solutions, Microsoft Dynamics AX Practice - - - -Dec-19-2013 Innotech Corporation (TSE:9880) Gaio Technology CO., Ltd. - - - -Dec-19-2013 Draftfcb Limited Inferno Ltd - - - -Dec-19-2013 TRANSPOREON GmbH MERCAREON GmbH - - - -Dec-19-2013 BearingPoint, Inc. RiValue GmbH - - - -Dec-19-2013 IM Medical Ltd. (ASX:IMI) White Data Pty Ltd. - $8.1 - -Dec-19-2013 Chanjet Information Technology Co., Ltd. Yonyou Software Co., Ltd., Tangible Assets, - $3.4 - -Dec-18-2013 Arsenal Capital Partners Certara, L.P. - - - -Dec-18-2013 Bespoke With Direction Limited Corporate Reputations Ltd. - - - -Dec-18-2013 Webedia SAS Exponaute SAS - - - -Dec-18-2013 Fuse Medical LLC Golf Rounds.com Inc. (OTCPK:TEEE) - - - -Dec-18-2013 Attunity, Inc. Hayes Technology Group, Inc. - $10.4 - -Dec-18-2013 The Byng Group Limited iLOOKABOUT Corp. (TSXV:ILA) $3.5 - - -Dec-18-2013 Apigee Corporation InsightsOne Systems, Inc. - - - -Dec-18-2013 KPMG LLP Link Analytics LLC - - - -Dec-18-2013 Optimal Blue, LLC LoanSifter, Inc. - - - -Dec-18-2013 Amadeus Americas, Inc. NMTI Holdings, Inc. - $500.0 - -Dec-18-2013 Blue Coat Systems Inc. Norman/Shark B.V. - - - -Dec-18-2013 Private Investor(s) Now Prepay Corp. - $4.2 - -Dec-18-2013 Elance, Inc. oDesk Corporation - - - -Dec-18-2013 Klarna AB Sofort AG - $199.0 - -Dec-18-2013 Private Investor(s) Stride - - - -Dec-18-2013 KM Franchising Ltd The DG Group - - - -Dec-18-2013 LDC Ltd. The Property Software Group $16.4 $29.2 1.8x -Dec-18-2013 Shenzhen Liantronics Co., Ltd. (SZSE:300269) Time Share Advertising & Communication Co., Ltd. $64.4 $141.7 2.2x -Dec-18-2013 Rosetta Stone Canada Inc. Vivity Labs, Inc. - $11.2 - -Dec-17-2013 WPCS International Incorporated (NasdaqCM:WPCS) BTX Trader LLC - - - -Dec-17-2013 BOC Partners, Inc. BullsEye Marketing, Inc. - - - -Dec-17-2013 Classic Graphics Inc. Creative Marketing Solutions, LLC $20.0 - - -Dec-17-2013 Nasstar plc (AIM:NASA) Denara Holdings Limited $9.4 $21.1 2.3x -

Acquirer




Target TTM Revenue

($mm)

EnterpriseValue

($mm)EV/

RevenueEV/

EBITDADec-17-2013 DataCard Corporation Entrust, Inc. - - - -Dec-17-2013 BroadSoft, Inc. (NasdaqGS:BSFT) finocom AG - $9.0 - -Dec-17-2013 Yahoo! Inc. (NasdaqGS:YHOO) Instant IO, Inc. - - - -Dec-17-2013 Dempton Groupe Conseil Interfacing Technologies Corporation - $0.9 - -Dec-17-2013 Nordjyske Medier A/S Jubii A/S - - - -Dec-17-2013 Cisco Systems, Inc. (NasdaqGS:CSCO) Kibits Corp. - - - -Dec-17-2013 Ensygnia Ltd Mustard Digital Limited - - - -Dec-17-2013 Mentor Graphics Corp. (NasdaqGS:MENT) Oasys Design Systems, Inc. - - - -Dec-17-2013 Facebook, Inc. (NasdaqGS:FB) SportStream, Inc. - - - -Dec-17-2013 PayPal, Inc. StackMob, Inc. - - - -Dec-17-2013 SVH Handels-GmbH svh24.de GmbH - - - -Dec-17-2013 BlueFocus Communication Group Co., Ltd. (SZSE:300058) We Are Social Ltd. - - - -Dec-16-2013 Private Investor(s) 76% Stake in Ad Asia Co., Ltd. and 76% Stake in Ad Asia Advertising (S) Pte Ltd. - $0.4 - -Dec-16-2013 Nippon Computer System Co., Ltd. (TSE:9709) Acces Co., Ltd. $15.6 - - -Dec-16-2013 Kantar Media Research Inc Fisheye Analytics Pte. Ltd. $0.6 - - -Dec-16-2013 Littlejohn & Co. LLC Hostway Corporation - - - -Dec-16-2013 freenet CityLine GmbH Jesta Digital GmbH and Jesta Digital Holdings, Inc. and Jesta Digital Group U.S. Holdings, Inc. - - - -Dec-16-2013 Private Investor(s) Mondeca S.A. - - - -Dec-16-2013 Unitrends Software Corporation PHD Virtual Technologies, Inc. - - - -Dec-16-2013 OpenTable, Inc. (NasdaqGS:OPEN) Quickcue, LLC - $11.5 - -Dec-16-2013 DARYUS Group RealISO - $2.2 - -Dec-16-2013 PROS Holdings, Inc. (NYSE:PRO) SignalDemand, Inc. - $13.5 - -Dec-16-2013 1HQ Limited Sonaa Ltd. - - - -Dec-16-2013 Radionomy SA TargetSpot, Inc. - - - -Dec-16-2013 Tech Soft 3D, Inc. tetra4d, LLC. - - - -Dec-16-2013 Constellation Software Inc. (TSX:CSU) Total Specific Solutions (TSS) B.V. $239.5 $330.3 1.4x -Dec-16-2013 Atlantic Street Capital Management, LLC Uniguest Inc. - - - -Dec-16-2013 Juniper Networks, Inc. (NYSE:JNPR) WANDL, Inc. - $60.0 - -Dec-16-2013 Viggle Inc. (OTCPK:VGGL) wetpaint.com, inc. $6.2 $68.6 11.2x -Dec-14-2013 OLX, Inc. Sulit.com.ph - - - -Dec-13-2013 Soleo Communications, Inc. Apptera, Inc. - - - -Dec-13-2013 Invast Securities Company Limited (JASDAQ:8709) CyberAgent FX Inc., Click 365 Business $2.8 $0.0 0.0x -Dec-13-2013 Wnet LLC Digiarea Networks Ltd. - - - -Dec-13-2013 I Love Velvet Inc. Expay SAS - - - -Dec-13-2013 ARM Holdings plc (LSE:ARM) Geomerics Ltd. - $10.1 - -Dec-13-2013 Egenerator Worldwide Networks Pvt. Ltd. Ideal Media US Inc. - - - -Dec-13-2013 PINpoint Information Systems, Inc. PerfectPart, LLC - - - -Dec-13-2013 SimplyBiz PLC Staffcare Limited - - - -Dec-13-2013 Ledra Capital LLC The Westonian Group, Inc. - - - -Dec-13-2013 OnCell Systems, Inc. TourSphere Inc. - - - -Dec-13-2013 Cellco Partnership United States Cellular Corporation, Wireless Assets in Rural Missouri - - - -Dec-13-2013 Rich Media Co.,Ltd. Uphills, Inc., Kamimado Business - $2.1 - -Dec-13-2013 Vanity Events Holding, Inc. Vanity Events Holding, Inc., Prior to Reverse Merger with Propalms Ltd. $0.0 - - -Dec-12-2013 William Reed Business Media Ltd Allegra Strategies Limited, Allegra Foodservice Business - - - -Dec-12-2013 AutoNavi Holdings Limited (NasdaqGS:AMAP) Alohar Mobile Inc. - $30.0 - -Dec-12-2013 Trimble Navigation Limited (NasdaqGS:TRMB) C3 Consulting LLC - - - -Dec-12-2013 Access UK Limited Compete IT Limited - - - -Dec-12-2013 Webtrekk GmbH Digital Revolution Technology GmbH - - - -Dec-12-2013 Solera Holdings Inc. (NYSE:SLH) Distribution Service Technologies, Inc. - - - -Dec-12-2013 MDNX Group Limited Easynet Group plc - $179.7 - -Dec-12-2013 BPW Bergische Achsen Kommanditgesellschaft Funkwerk eurotelematik GmbH - - - -

Acquirer




Target TTM Revenue

($mm)

EnterpriseValue

($mm)EV/

RevenueEV/

EBITDADec-12-2013 Marketo, Inc. (NasdaqGS:MKTO) Insightera - $23.2 - -Dec-12-2013 Townsquare Media, Inc. MAC Events, L.L.C. - - - -Dec-12-2013 6 Wunderkinder GmbH Moped - - - -Dec-12-2013 Trade ME Group Ltd. (NZSE:TME) MotorWeb Services Ltd - $16.1 - 5.3xDec-12-2013 Xumanii International Holdings Corp (OTCPK:XUII) NTIH - - - -Dec-12-2013 LX Ventures Inc. (TSXV:LXV) Strutta Media, Inc. - $9.6 - -Dec-12-2013 AEP Investment Management Pte Ltd; Keppel Data Centre Investment ManaWestpac Data Centre - $42.8 - -Dec-12-2013 The Sales Factory, Inc. Woodbine Agency, Inc. - - - -Dec-11-2013 Enterprise Software Solutions Brasil Ltda. Empresa de Business Analytics - $2.6 - -Dec-11-2013 Square, Inc. Evenly - - - -Dec-11-2013 Square 2 Marketing, Inc. Full Quota, LLC - - - -Dec-11-2013 Medium Entertainment, Inc. Kontagent Inc. - - - -Dec-11-2013 LifeLock, Inc. (NYSE:LOCK) Lemon, Inc. - $42.6 - -Dec-11-2013 Orient Technologies Pvt. Ltd. Orbis Media Technologies Pvt. Ltd. $0.2 $1.0 5.6x -Dec-11-2013 ContactAtOnce! LLC Outsell, LLC, Direct Chat Business - - - -Dec-11-2013 Australian Property Monitors Pty Limited Property Data Solutions Pty. Ltd. - $27.2 - -Dec-11-2013 Gatesman+Dave Inc. Quest Fore Inc - - - -Dec-11-2013 Gaming Realms plc (AIM:GMR) Quick Think Media Ltd. - $3.7 - -Dec-11-2013 UBM Aviation Routes Limited Reed Business Information Ltd., Flightglobal Network USA Event - - - -Dec-11-2013 Circle Media, Inc. S3 Digital Corp. - - - -Dec-11-2013 wywy GmbH SecondScreen Networks - - - -Dec-11-2013 Rosetta Stone Ltd. Tell Me More S.A. - $28.6 - -Dec-11-2013 TransPerfect Translations International, Inc. Vasont Systems, Inc. - - - -Dec-10-2013 Friedman Corporation ASA Automotive Systems LLC - - - -Dec-10-2013 Thomson Reuters Corporation (TSX:TRI) AVEDAS AG - - - -Dec-10-2013 Pitooey!, Inc. (OTCBB:PTOO) Beanstalk Networks LLC, RAADR - - - -Dec-10-2013 Vice Media Inc. Carrot Creative, LLC - - - -Dec-10-2013 Altair Engineering, Inc. EM Software & Systems-S.A. (Pty) Ltd. - - - -Dec-10-2013 RTL Group SA (BDL:006146252) Girls.fr - - - -Dec-10-2013 Dailymotion SA Jilion SA - - - -Dec-10-2013 Private Investor(s) KWICK! Community GmbH & Co. KG and KWICK! Community Beteiligungs GmbH - $0.1 - -Dec-10-2013 AT&T, Inc. (NYSE:T) Polar Communications Mutual Aid Corporation, Grand Forks, ND-MN 700 MHz C-Block License - - - -Dec-10-2013 Apsis International AB ProspectEye AB - - - -Dec-10-2013 Access Control Technology Ltd Sicura Systems Ltd. - - - -Dec-10-2013 Esendex Limited Text Marketer Ltd - - - -Dec-10-2013 JDS Uniphase Corporation (NasdaqGS:JDSU) Trendium, Inc. - $24.9 - -Dec-10-2013 Salem Communications Corp. (NasdaqGM:SALM) Twitchy LLC - - - -Dec-10-2013 BDRC Group Ltd. Viewpoint Field Services Limited $3.3 - - -Dec-10-2013 Spindle, Inc. (OTCPK:SPDL) Yowza International, Inc. - $3.4 - -Dec-09-2013 24/7 Media, Inc. Crystal Semantics Ltd. - - - -Dec-09-2013 Verizon Digital Media Services, Inc. EdgeCast Networks, Inc. - - - -Dec-09-2013 Guard Systems ASA (OTCNO:GUSY) ePocket Solutions AS - - - -Dec-09-2013 CampMobile Corp. Gogolook Co. Ltd. - - - -Dec-09-2013 Caxton and CTP Publishers and Printers Limited (JSE:CAT) HABARI MEDIA (PTY) LTD - - - -Dec-09-2013 Systancia SA IPdiva SA $1.2 - - -Dec-09-2013 Adideo Limited Kuponista.com - - - -Dec-09-2013 OOO KIT Finance Capital LLC "Norilsk telecom" - - - -Dec-09-2013 SmartBear Software, Inc. Lucierna, S.L. - - - -Dec-09-2013 The E. W. Scripps Company (NYSE:SSP) Media Convergence Group Inc. - $35.0 - -Dec-09-2013 Led Holding S.A. NEMEX S.A. (WSE:NMX) $3.5 - - -Dec-09-2013 Edenred SA (ENXTPA:EDEN) Nets Prepaid - - - -

Acquirer




Target TTM Revenue

($mm)

EnterpriseValue

($mm)EV/

RevenueEV/

EBITDADec-09-2013 Calero Software, LLC PAETEC Software Corp. - - - -Dec-09-2013 Autologue Computer Systems, Inc. Partner Data Systems Inc. - - - -Dec-09-2013 Logibec Groupe Informatique Ltee QHR Corporation, Enterprise Management Solutions Division - $18.8 - -Dec-09-2013 Yahoo! Inc. (NasdaqGS:YHOO) Quik.io, Inc - - - -Dec-09-2013 Accelrys Software Inc. QUMAS, Limited $19.3 $47.8 2.5x -Dec-09-2013 Satori Capital, L.L.C. S Squared, L.L.C. - - - -Dec-09-2013 The Institute of Finance & Management The Accounts Payable Network, LLC and The Accounts Receivable Network, LLC - - - -Dec-09-2013 Publicis Healthcare Communications Group, Inc. Verilogue, Inc. - - - -Dec-08-2013 Billups Worldwide, Inc. Strategic Outdoor Shop, LLC - - - -Dec-08-2013 IAC Search, LLC ValueClick, Inc., Owned and Operated Websites Segment - $80.0 - -Dec-07-2013 UCWeb Inc. Teiron Network Technology Co.,Ltd. - - - -Dec-06-2013 Brokerbility Ltd brokerTech Ltd. - - - -Dec-06-2013 Splunk, Inc. (NasdaqGS:SPLK) Cloudmeter, Inc. - $21.0 - -Dec-06-2013 Zeitverlag Gerd Bucerius Gmbh & Co. Kg Convent Gesellschaft fur Kongresse und Veranstaltungsmanagement mbH - - - -Dec-06-2013 Sociedad Comercial del Plata S.A. (BASE:COME) CPS Comunicaciones S.A. $0.1 $28.8 205.4x -Dec-06-2013 Yahoo! Inc. (NasdaqGS:YHOO) EvntLive, Inc. - - - -Dec-06-2013 Anvil Media, Inc. Formic Media, Inc. $0.7 - - -Dec-06-2013 Groupon, Inc. (NasdaqGS:GRPN) Get Out of Cambridge, Inc. - - - -Dec-06-2013 Symbid Corp. (OTCBB:SBID) Symbid Corp., Prior to Reverse Merger with Symbid Holding B.V. - - - -Dec-05-2013 DO & CO Aktiengesellschaft (WBAG:DOC) Arena One GmbH $92.9 - - -Dec-05-2013 MOBI Wireless Management LLC Bluefish Wireless Inc. - - - -Dec-05-2013 WIRD AG Cortex IT SA - - - -Dec-05-2013 Wüest & Partner AG Datahouse AG - - - -Dec-05-2013 Fenerbahce Futbol Anonim Sirketi (IBSE:FENER) Fenerbahce Spor Urunleri Sanayi Ve Ticaret AS - $137.6 - -Dec-05-2013 Morizon Spolka Akcyjna (WSE:MZN) Melog.com Sp. z o.o. - - - -Dec-05-2013 Pollen OTA - - - -Dec-05-2013 accesso Technology Group plc (AIM:ACSO) Siriusware, Inc. $8.0 $12.9 1.6x -Dec-05-2013 HMV New Entertainment & Lifestyle Limited VS Media Co Limited - - - -Dec-04-2013 LumenData, Inc. Algorithms.io Inc. - - - -Dec-04-2013 Cloud Security Corporation (OTCPK:CLDS) App Ventures Ltd - - - -Dec-04-2013 TeamSystem S.r.l. Applicazioni Contabili Gestionali Srl - - - -Dec-04-2013 Systems In Motion, Inc. Claritics, Inc. - - - -Dec-04-2013 Openwave Messaging Inc. Critical Path, Inc. - - - -Dec-04-2013 Intuit Inc. (NasdaqGS:INTU) Docstoc Inc. - - - -Dec-04-2013 Booking.com B.V. eBuddyB.V. - - - -Dec-04-2013 Cactus Creative, LLC Edit Bay Communications - - - -Dec-04-2013 MGT Capital Investments, Inc. (AMEX:MGT); m2p entertainment GmbH M2P Americas, Inc. - - - -Dec-04-2013 RealityMine Limited Media Behavior Institute LLC - - - -Dec-04-2013 Slyce Mocial.MEdia Inc. - - - -Dec-04-2013 Ansys Limited (JSE:ANS) Reaction Design, Inc. - - - -Dec-04-2013 Dassault Systemes SA (ENXTPA:DSY) Realtime Technology AG (XTRA:R1T) $109.4 $263.3 2.3x 18.6xDec-04-2013 Google Inc. (NasdaqGS:GOOG) SCHAFT Inc. - - - -Dec-04-2013 Bluechilli The New Agency Pty Ltd - - - -Dec-04-2013 CSG Systems International Inc. (NasdaqGS:CSGS) VoluBill S.A. - - - -Dec-03-2013 Sigma IT & Management Sweden AB Bool Nordic AB - - - -Dec-03-2013 Hexagon AB (OM:HEXA B) Consultoria, Soluciones de Ingeniera y Servicios PIXIS Ltda. - - - -Dec-03-2013 Yahoo! Inc. (NasdaqGS:YHOO) DWA Investments, Inc. - - - -Dec-03-2013 Ubisense Group Plc (AIM:UBI) Geoplan Co., Ltd. $8.8 $5.6 0.6x -Dec-03-2013 Mashery, Inc. Hacker League, LLC - - - -Dec-03-2013 HBC Solutions, Inc. Imagine Communications, Inc. - - - -Dec-03-2013 Terryberry Company, LLC MERITSHARE LLC - - - -

Acquirer




Target TTM Revenue

($mm)

EnterpriseValue

($mm)EV/

RevenueEV/

EBITDADec-03-2013 RetailNext, Inc. Nearbuy Systems, Inc. - - - -Dec-03-2013 Blinkx plc (AIM:BLNX) Rhythm NewMedia, Inc. $11.7 $55.1 4.7x -Dec-03-2013 SunGard Data Systems Inc. Softputer Technologies, LLC, FundBridge and NSARFiler Solutions - - - -Dec-03-2013 HomeAway Pty. Ltd. Stayz Pty Limited $22.9 $194.8 8.5x -Dec-03-2013 Blackfin Capital Partners SAS SunGard Capital Corp., Asset Arena GP3 and Asset Arena Manager - $61.2 - -Dec-03-2013 Saatchi & Saatchi South Africa (Pty) Ltd. Synergize Digital PTY LTD - - - -Dec-03-2013 Square, Inc. Viewfinder - - - -Dec-02-2013 NCR Limited Alaric Systems Limited - $78.4 - -Dec-02-2013 Fuse Powered Inc. AppHero, Inc. - - - -Dec-02-2013 Software Technology, Inc. Chalkable - - - -Dec-02-2013 NCR Corp. (NYSE:NCR) Digital Insight Corporation $330.0 $1,650.0 5.0x -Dec-02-2013 Appriss Inc. Docview LLC and Deep River LLC - - - -Dec-02-2013 Bourse Direct Société Anonyme (ENXTPA:BSD) Dubus SA, Online Trading Business - - - -Dec-02-2013 Koch Media GmbH FISHLABS Entertainment GmbH - - - -Dec-02-2013 Neogrid S.A. G2KA Sistemas Ltda - - - -Dec-02-2013 Private Investor(s) Groupalia S.r.l. - - - -Dec-02-2013 Yahoo! Inc. (NasdaqGS:YHOO) SkyPhrase, Inc. - - - -Dec-02-2013 Apple Inc. (NasdaqGS:AAPL) Topsy Labs, Inc. - $200.0 - -Dec-02-2013 Genesys Telecommunications Laboratories, Inc. Voran Tecnologia Ltda - - - -Dec-01-2013 Datel Computing Ltd Pythagoras Communications Limited, Sage 200 Customer Base - - - -

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 $2,446.4 $2,445.3 $784.9 71.1% 20.0% 8.1% 3.3x 14.7x 3.0x 12.0x 27.6% Billing & Service Management $749.8 $764.7 $233.5 56.7% 19.4% 7.7% 3.6x 9.7x 2.5x 8.3x 32.7% Business Intelligence $1,644.2 $1,396.1 $472.8 72.1% 14.0% 9.7% 3.3x 19.7x 3.1x 16.7x 27.6% Development Platforms $2,664.8 $2,733.5 $1,138.5 77.6% 20.0% 0.1% 2.8x 11.8x 3.0x 9.7x 15.5% Engineering & PLM $4,040.0 $4,056.2 $1,086.6 84.0% 20.1% 4.4% 3.1x 15.1x 2.8x 12.7x 34.1% Enterprise Resource Planning $7,349.6 $7,943.0 $2,228.0 72.2% 29.0% 2.7% 3.6x 13.3x 3.0x 10.1x 26.5% Financial & Accounting $2,483.2 $2,668.6 $743.4 54.7% 26.7% 10.7% 3.8x 14.7x 3.8x 12.1x 44.2% Gaming $2,446.4 $2,445.3 $1,966.6 66.8% 13.4% 10.7% 1.6x 13.5x 1.4x 7.7x 56.6% Healthcare $1,071.0 $992.1 $560.1 55.5% 16.9% 7.6% 2.5x 19.7x 2.4x 11.2x 23.2% IT Conglomerates $170,811.6 $158,481.6 $80,370.0 72.2% 35.0% 0.9% 3.1x 8.8x 2.9x 8.1x 10.3% Mobile Solutions/Content $734.8 $654.9 $245.9 56.2% 7.2% 23.7% 3.0x 18.0x 2.1x 18.7x 43.1% Networking & Network Performance Managemen $2,183.5 $2,094.0 $784.9 71.1% 13.5% 4.6% 2.8x 15.8x 2.6x 10.7x 0.3% Security $1,206.0 $1,097.3 $225.9 76.6% 3.2% 14.2% 3.3x 13.6x 3.9x 17.9x 19.2% Storage, Data Mgmt & Integration $13,871.3 $9,593.6 $4,614.0 73.5% 23.3% 4.4% 3.1x 9.5x 2.9x 8.1x 10.7% Supply Chain Management & Logistics $1,547.7 $1,469.2 $236.1 61.9% 24.1% 14.2% 5.4x 20.2x 4.8x 16.5x 46.1% Systems Management $11,076.3 $10,245.7 $2,169.1 85.7% 24.2% 15.3% 5.2x 17.4x 4.6x 12.8x -1.6% Vertical - Finance $4,151.1 $4,584.9 $858.5 43.7% 26.2% 8.1% 4.9x 14.3x 5.3x 12.0x 66.3% Vertical - Other $1,672.5 $1,830.1 $401.3 52.5% 12.3% 24.6% 3.7x 31.7x 3.0x 17.1x 61.5%

Category Name

TTM Revenue Growth 7.6%TTM EBITDA Growth -11.3%TTM Earnings Growth -54.2%Gross Profit Margin 68.2%EBITDA Margin 19.0%Net Income Margin -4.5%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 17.8%

Current Ratio 2.6Quick Ratio 2.4Cash as Percent of Market Cap 8.4%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 27Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 9.0%Cash from Operations Growth (YoY) 14.4%Cash from Investing Growth (YoY) -57.1%Cash from Financing Growth (YoY) 111.2%Levered FCF Growth (YoY) 0.6%

Copyright © 2013 by Software Equity Group, L.L.C., All Rights Reserved December 2013 Monthly Flash Report

Income Statement Analysis (Median)

Balance Sheet Analysis (Median)

Cash Flow Statement Analysis (Median)

0%

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40%SEG SW Index Software Stock Market Return: January - December 2013

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 $1,569.3 $1,462.8 $166.7 68.7% 0.0% 26.5% 9.2x 70.9x 7.9x 30.4x 43.7% CRM & Marketing $858.3 $766.0 $174.8 72.4% 0.0% 26.5% 3.7x 155.4x 3.2x 30.4x 4.4% ERP & Supply Chain $1,569.3 $1,462.8 $163.1 68.7% 0.2% 37.9% 9.2x 70.9x 8.1x 47.9x 71.6% Vertically Focused $1,758.5 $1,714.5 $260.9 66.9% 15.5% 26.1% 5.5x 31.7x 5.0x 17.1x 41.3% Workforce Management $2,747.3 $2,734.3 $166.7 61.1% -9.8% 42.7% 10.7x 73.9x 8.8x 41.5x 55.1% SaaS Other $1,423.8 $1,346.7 $148.3 72.1% -1.1% 26.0% 9.5x 46.0x 7.9x 24.7x 43.7%

Category Name

TTM Revenue Growth 26.5%TTM EBITDA Growth -11.3%TTM Earnings Growth -54.2%Gross Profit Margin 68.7%EBITDA Margin 0.0%Net Income Margin -4.5%SG&A Expenses as a % of Total Revenue 55.9%R&D Expenses as a % of Total Revenue 17.8%

Current Ratio 2.6Quick Ratio 2.4Cash as Percent of Market Cap 8.4%Avg Days Outstanding: Accounts Receivable 63Avg Days Outstanding: Accounts Payable 27Working Capital to TTM Operating Expense Ratio 0.6x

Levered FCF Margin 9.0%Cash from Operations Growth (YoY) 14.4%Cash from Investing Growth (YoY) -57.1%Cash from Financing Growth (YoY) 111.2%Levered FCF Growth (YoY) 0.6%





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60%SEG SaaS Index Stock Market Return: January - December 2013

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 $2,425.8 $2,020.5 $510.0 64.1% 11.4% 16.0% 3.5x 25.2x 2.7x 14.0x 62.4% Ad Tech & Lead Generation $1,880.2 $1,832.1 $518.2 63.9% 10.6% 16.4% 3.1x 27.2x 2.6x 14.0x 47.6% Commerce $712.2 $593.6 $441.7 41.6% 5.6% 13.9% 1.2x 21.6x 1.2x 13.9x 42.9% Content & Media $3,475.7 $3,413.6 $501.8 50.5% 15.8% 10.8% 3.4x 27.4x 3.1x 12.3x 57.9% Gaming $2,971.46 $2,208.9 $889.9 73.3% 35.2% 15.7% 3.6x 9.7x 2.5x 7.6x 67.0% Infrastructure $612.83 $581.7 $275.7 60.0% 6.1% 4.7% 1.6x 15.5x 1.5x 10.6x 38.4% Services $1,258.40 $1,223.0 $223.1 72.2% 5.3% 45.5% 3.6x 32.2x 2.9x 21.2x 67.5% Social $8,971.61 $8,758.3 $534.5 64.3% 12.1% 56.9% 17.0x 41.2x 12.8x 34.8x 92.1% Travel $5,248.87 $4,738.7 $832.0 82.0% 17.3% 21.1% 5.1x 23.2x 6.3x 17.6x 83.3%

TTM Revenue Growth 16.4%TTM EBITDA Growth 18.1%TTM Earnings Growth 6.0%Gross Profit Margin 63.9%EBITDA Margin 10.6%Net Income Margin 1.9%SG&A Expenses as a % of Total Revenue 39.6%R&D Expenses as a % of Total Revenue 13.7%

Current Ratio 2.4Quick Ratio 2.2Cash as Percent of Market Cap 13.4%Avg Days Outstanding: Accounts Receivable 40Avg Days Outstanding: Accounts Payable 52Working Capital to TTM Operating Expense Ratio 0.5

Levered FCF Margin 10.4%Cash from Operations Growth (YoY) 10.8%Cash from Investing Growth (YoY) -12.1%Cash from Financing Growth (YoY) -5.6%Levered FCF Growth (YoY) 0.8%





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70%SEG Internet Index Stock Market Return: January - December 2013

DOW S&P NASDAQ SEG Internet Index

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