software sector summary report - gca global · 2 software deal dashboard notes: source: capital iq,...
TRANSCRIPT
2
SOFTWARE DEAL DASHBOARD
Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 01/20/2017. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Select Software M&A transactions reflect notable transactions in CY2016. 5) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM. 7) Aggregative Value represents the majority stake being acquired by KKR. The Blackstone Group will maintain a minority stake.
Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3)
$Bn $Bn
(7)
34%
Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4)
Company Amount ($MM) Target Acquirer EV ($Bn)
$50.4 $26.2
$50.0 $8.7
$50.0 $8.7
$45.0 $6.1
$33.0 $3.3
$32.0 $2.8
$30.0 $2.4
$22.0 $1.8
Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6)
`
$2.1 BillionFinancing Volume 2017 YTD (1)(2)
34Financing Transactions 2017 YTD (1)(2)
$2.1 BillionM&A Volume 2017 YTD (3)
5M&A Transactions 2017 YTD (3)
7286
118103 111
127
94
123
34
0
30
60
90
120
150
180
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17
$3$4
$6 $6
$9$10
$5$6
$2
$0
$2
$4
$6
$8
$10
$12
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17
$5
$14
$24
$15
$7
$50
$41
$15
$2
$0
$10
$20
$30
$40
$50
$60
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
7
13
2427
15
2924
27
5
0
10
20
30
40
Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17
(Software Business Division)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
IGV SPX
22.2%22.9%
( )
TD TD
TDTD
94% 54%
20%
3
RECENT STOCK PERFORMANCE Index Performance
Last 12 Months Last 3 Years
Notes: Source: Capital IQ. Market Data as of 01/20/2017. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.
Sector 3 Months 1 Year 3 Years
Platform 5% 20% 32%
Infrastructure 5% 32% 3%
Security 7% 19% 12%
SaaS / On Demand 3% 20% 15%
BI & Analytics (3%) 3% (23%)
Vertical (6%) 6% 5%
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17
4
TRADING COMPARABLES Valuation Metrics
EV / 2016E Revenue EV / 2016E EBITDA
Notes: Source: Capital IQ. Market Data as of 01/20/2017. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.
5.2x4.9x
4.5x 4.5x4.3x
3.2x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
SaaS / OnDemand
Infrastructure Platform Vertical Security BI & Analytics
31.9x
28.1x29.6x
22.8x20.8x
15.5x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
40.0x
SaaS / OnDemand
BI & Analytics Security Infrastructure Vertical Platform
5
TRADING COMPARABLES Operational Metrics
2016 EBITDA Margin 2017 / 2016 Rev. Growth
32%
26%
22% 20%
17% 15%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Platform Infrastructure Vertical Security BI & Analytics SaaS / OnDemand
19%
16% 15%15% 15%
7%
0%
5%
10%
15%
20%
25%
SaaS / OnDemand
Security BI & Analytics Vertical Infrastructure Platform
Notes: Source: Capital IQ. Market Data as of 01/20/2017. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.
6
PUBLIC COMPANY VALUATIONS Software Trading Statistics
Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM. Market Data as of 01/20/2017.
$MM, Except Per Share Data
Stock Trading Statistics Operating Metrics
Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin
1/20/2017 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E
Platform
Alphabet Inc. $828.17 $570,808 ($79,118) $491,690 5.5x 4.8x 13.6x 11.6x 23.8x 20.2x 19.1% 15.8% 40.4% 41.0%
Microsoft Corporation $62.74 487,825 (60,857) 426,968 4.6 4.4 12.2 11.5 22.0 20.5 4.8% 4.3% 37.9% 38.4%
Oracle Corporation $39.87 163,561 (3,879) 159,682 4.3 4.2 10.9 9.4 19.0 15.1 (0.6%) 2.7% 39.2% 44.4%
International Business Machines Corporation $170.55 162,168 33,641 195,809 2.5 2.5 11.2 10.0 13.8 12.4 (2.2%) (1.5%) 21.9% 24.9%
SAP SE $89.37 107,078 2,962 110,040 4.7 4.4 13.5 12.5 22.3 19.6 2.8% 8.3% 35.2% 35.0%
Red Hat, Inc. $74.20 13,229 (555) 12,674 5.4 4.8 31.8 18.3 56.7 29.6 17.9% 12.8% 17.1% 26.4%
Mean 4.5x 4.2x 15.5x 12.2x 26.3x 19.6x 7.0% 7.1% 32.0% 35.0%
Median 4.7 4.4 12.8 11.6 22.2 19.9 3.8% 6.3% 36.5% 36.7%
Infrastructure
VMware, Inc. $82.64 $34,140 ($6,754) $27,386 3.9x 3.7x 10.4x 10.0x 18.9x 17.6x 6.1% 5.5% 37.4% 36.7%
Citrix Systems, Inc. $92.99 14,503 (324) 14,179 4.2 4.2 11.9 11.7 17.9 17.4 4.1% (1.1%) 34.8% 35.9%
ServiceNow, Inc. $83.40 13,845 (308) 13,538 9.8 7.5 51.9 34.9 NM 79.7 37.7% 30.0% 18.8% 21.5%
CA, Inc. $32.57 13,609 (496) 13,113 3.3 3.2 8.1 8.3 12.9 12.9 (0.1%) 0.3% 40.0% 39.1%
Red Hat, Inc. $74.20 13,229 (555) 12,674 5.4 4.8 31.8 18.3 56.7 29.6 17.9% 12.8% 17.1% 26.4%
F5 Networks, Inc. $142.10 9,282 (882) 8,400 4.2 3.8 10.6 9.9 18.8 16.7 3.9% 8.2% 39.4% 38.6%
Splunk Inc. $53.78 7,296 (939) 6,356 6.8 5.4 78.6 50.4 NM NM 39.4% 27.0% 8.7% 10.7%
Atlassian Corporation Plc $28.03 6,172 (795) 5,376 10.1 7.7 NM 37.6 NM 79.1 37.2% 31.7% NM 20.4%
Micro Focus International plc $26.14 5,996 1,613 7,609 5.6 4.5 12.0 10.1 15.6 14.6 9.2% 24.4% 47.0% 44.6%
Nutanix, Inc. $28.35 4,033 (347) 3,686 NA 4.2 NA NM NM NM NA NA NA NM
NetScout Systems, Inc. $30.85 2,825 5 2,830 2.5 2.3 9.6 7.2 18.5 14.5 45.4% 8.6% 25.8% 31.5%
LogMeIn, Inc. $107.45 2,751 (180) 2,571 7.7 6.7 29.1 24.9 53.9 41.8 23.5% 15.2% 26.3% 26.7%
Software Aktiengesellschaft $34.17 2,605 (105) 2,500 2.7 2.6 8.6 8.3 13.5 12.8 (2.6%) 3.7% 31.5% 31.6%
Commvault Systems, Inc. $55.25 2,502 (440) 2,063 3.2 3.1 23.0 21.3 51.3 50.7 8.3% 6.1% 14.1% 14.4%
Pure Storage, Inc. $12.02 2,403 (518) 1,884 2.6 1.9 NM NM NM NM 65.1% 39.1% NM NM
New Relic, Inc. $32.65 1,702 (197) 1,504 6.2 4.9 NM NM NM NM 48.5% 28.3% NM 0.9%
Progress Software Corporation $28.18 1,369 (115) 1,255 3.1 3.2 11.4 9.1 NM 17.2 7.4% (3.7%) 27.0% 35.4%
A10 Networks, Inc. $8.00 538 (117) 421 1.9 1.6 NM 25.0 NM 89.3 14.1% 13.2% 1.8% 6.6%
Mean 4.9x 4.2x 22.8x 19.1x 27.8x 35.3x 21.5% 14.7% 26.4% 26.3%
Median 4.2 4.0 11.9 11.7 18.7 17.5 14.1% 12.8% 26.7% 29.1%
7
PUBLIC COMPANY VALUATIONS Software Trading Statistics
Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM. Market Data as of 01/20/2017.
$MM, Except Per Share Data
Stock Trading Statistics Operating Metrics
Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin
1/20/2017 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E
Security Software
Check Point Software Technologies Ltd. $97.79 $17,104 ($1,373) $15,731 9.0x 8.4x 18.2x 15.6x 23.4x 18.9x 6.8% 7.4% 49.7% 53.9%
Symantec Corporation $26.65 16,614 1,557 18,171 4.8 4.0 12.2 8.7 24.4 17.4 (38.3%) 18.6% 39.1% 46.0%
Palo Alto Networks, Inc. $142.11 13,030 (884) 12,146 7.7 5.9 36.4 23.5 67.9 44.1 36.9% 30.3% 21.2% 25.1%
Splunk Inc. $53.78 7,296 (939) 6,356 6.8 5.4 78.6 50.4 NM NM 39.4% 27.0% 8.7% 10.7%
Fortinet, Inc. $32.32 5,593 (1,030) 4,562 3.6 3.1 21.2 16.9 50.5 40.0 24.5% 16.8% 17.2% 18.4%
Trend Micro Incorporated $36.65 5,026 (1,255) 3,771 3.3 3.1 10.5 9.5 30.5 25.6 9.4% 8.6% 31.9% 32.2%
Proofpoint, Inc. $80.61 3,425 (51) 3,374 9.0 7.0 94.1 68.4 NM NM 40.7% 29.8% 9.6% 10.2%
FireEye, Inc. $13.04 2,231 (193) 2,038 2.8 2.6 NM 67.9 NM NM 15.6% 10.2% NM 3.8%
CyberArk Software Ltd. $51.35 1,724 (252) 1,471 6.8 5.6 24.6 21.0 43.5 38.2 33.9% 22.4% 27.7% 26.6%
Imperva, Inc. $40.60 1,333 (259) 1,074 4.2 3.5 NM 92.4 NM NM 9.4% 19.0% NM 3.8%
Barracuda Networks, Inc. $23.32 1,231 (190) 1,041 3.0 2.8 29.9 14.0 NM 31.7 12.5% 6.5% 10.0% 20.1%
Qualys, Inc. $34.00 1,214 (210) 1,004 5.1 4.3 15.4 13.2 42.2 37.3 20.7% 17.8% 32.8% 32.6%
Mimecast Limited $21.42 1,174 (107) 1,068 6.4 5.1 NM 60.9 NM NM 23.8% 23.7% 5.0% 8.4%
SecureWorks Corp. $10.85 875 (111) 764 1.8 1.6 NM NM NM NM 26.0% 14.8% NM NM
VASCO Data Security International, Inc. $14.95 594 (142) 453 2.4 2.2 18.7 16.5 31.1 22.7 (20.9%) 9.7% 12.7% 13.1%
F-Secure Oyj $3.63 567 (97) 470 2.8 2.6 18.9 14.4 36.1 30.7 3.3% 8.5% 15.0% 18.1%
Rapid7, Inc. $12.79 543 (88) 456 2.9 2.4 NM NM NM NM 40.6% 23.2% NM NM
MobileIron, Inc. $4.30 378 (80) 298 1.8 1.6 NM NM NM NM 9.6% 11.2% NM NM
Zix Corporation $4.91 263 (25) 238 4.0 3.6 14.6 13.7 19.6 17.5 9.9% 9.4% 27.1% 26.5%
Guidance Software, Inc. $7.10 229 (7) 222 2.0 1.9 NM 19.0 NM 23.1 2.6% 4.7% 0.9% 10.1%
Absolute Software Corporation $5.12 200 (32) 168 1.9 1.7 20.6 18.7 NM NM (3.8%) 9.7% 9.2% 9.2%
iPass Inc. $1.58 105 (17) 88 1.4 1.2 NM 19.0 NA NA 1.3% 14.0% NM 6.4%
Mean 4.3x 3.6x 29.6x 29.7x 36.9x 28.9x 13.8% 15.6% 19.9% 19.7%
Median 3.5 3.1 19.7 18.7 33.6 28.2 11.2% 14.4% 16.1% 18.1%
8
PUBLIC COMPANY VALUATIONS Software Trading Statistics
Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM. Market Data as of 01/20/2017.
$MM, Except Per Share Data
Stock Trading Statistics Operating Metrics
Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin
1/20/2017 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E
SaaS / On Demand
salesforce.com, inc. $76.03 $51,632 $1,315 $52,946 6.3x 5.2x 30.9x 25.0x 77.6x 59.1x 25.6% 21.4% 20.5% 20.9%
Workday, Inc. $81.78 16,438 (1,386) 15,052 9.6 7.6 NM 68.5 NM NM 34.5% 27.5% 8.7% 11.0%
ServiceNow, Inc. $83.40 13,845 (308) 13,538 9.8 7.5 51.9 34.9 NM 79.7 37.7% 30.0% 18.8% 21.5%
Veeva Systems Inc. $42.94 5,890 (511) 5,379 10.0 8.3 32.1 26.6 63.0 54.0 31.9% 20.7% 31.0% 31.1%
The Ultimate Software Group, Inc. $194.63 5,644 (100) 5,544 7.1 5.7 29.7 23.4 60.0 48.6 26.3% 24.0% 23.9% 24.4%
Shopify Inc. $50.09 4,507 (400) 4,107 10.8 7.3 NM NM NM NM 85.5% 47.9% 0.0% 2.4%
Aspen Technology, Inc. $55.53 4,289 (52) 4,237 9.0 8.7 17.9 18.2 29.5 29.5 1.3% 3.1% 50.1% 47.9%
j2 Global, Inc. $86.35 4,150 274 4,424 5.1 4.0 11.3 9.3 17.5 14.3 19.2% 28.7% 45.4% 43.2%
Blackbaud, Inc. $66.72 3,101 359 3,461 4.7 4.4 19.8 18.2 35.2 30.5 14.6% 8.8% 24.0% 23.9%
Paycom Software, Inc. $49.19 2,957 (44) 2,912 8.9 6.9 32.7 25.2 60.0 47.2 45.9% 28.7% 27.2% 27.4%
LogMeIn, Inc. $107.45 2,751 (180) 2,571 7.7 6.7 29.1 24.9 53.9 41.8 23.5% 15.2% 26.3% 26.7%
RealPage, Inc. $28.90 2,326 54 2,379 4.2 3.7 19.0 16.0 38.9 32.0 21.3% 14.4% 22.0% 22.9%
Cornerstone OnDemand, Inc. $40.95 2,301 (1) 2,300 5.4 4.7 68.2 47.0 NM NM 24.7% 15.4% 8.0% 10.0%
Zendesk, Inc. $24.07 2,295 (211) 2,083 6.7 5.1 NM NM NM NM 48.8% 32.3% 1.6% 3.5%
Box, Inc. $16.97 2,148 (102) 2,046 5.1 4.1 NM NM NM NM 31.3% 26.0% NM NM
HubSpot, Inc. $50.25 1,789 (113) 1,676 6.2 4.8 NM NM NM NM 47.7% 30.3% NM 0.4%
Paylocity Holding Corporation $33.80 1,735 (78) 1,657 6.3 5.0 52.5 38.6 NM 77.7 39.8% 26.0% 12.0% 13.0%
New Relic, Inc. $32.65 1,702 (197) 1,504 6.2 4.9 NM NM NM NM 48.5% 28.3% NM 0.9%
RingCentral, Inc. $22.85 1,681 (136) 1,545 4.1 3.3 71.7 49.1 NM NM 27.2% 24.4% 5.7% 6.7%
2U, Inc. $33.89 1,595 (157) 1,438 7.0 5.4 NM NM NM NM 36.4% 30.8% 2.0% 3.1%
Coupa Software Incorporated $25.11 1,255 (221) 1,034 7.9 6.3 NM NM NM NM 57.2% 25.1% NM NM
Qualys, Inc. $34.00 1,214 (210) 1,004 5.1 4.3 15.4 13.2 42.2 37.3 20.7% 17.8% 32.8% 32.6%
SPS Commerce, Inc. $70.70 1,205 (125) 1,079 5.6 4.7 41.0 33.6 71.8 59.8 21.8% 17.8% 13.6% 14.1%
Mimecast Limited $21.42 1,174 (107) 1,068 6.4 5.1 NM 60.9 NM NM 23.8% 23.7% 5.0% 8.4%
Callidus Software Inc. $17.90 1,136 (186) 950 4.6 3.9 41.1 28.5 66.6 51.4 18.6% 18.4% 11.3% 13.7%
9
PUBLIC COMPANY VALUATIONS Software Trading Statistics
Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM. Market Data as of 01/20/2017.
$MM, Except Per Share Data
Stock Trading Statistics Operating Metrics
Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin
1/20/2017 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E
SaaS / On Demand (cont'd)
Benefitfocus, Inc. $31.70 $943 $15 $958 4.1 3.4 NM 86.2 NM NM 26.2% 19.2% NM 4.0%
Five9, Inc. $16.39 868 (13) 855 5.4 4.6 NM NM NM NM 24.0% 16.2% 4.5% 4.5%
Apptio, Inc. $16.45 630 (122) 508 3.2 2.7 NM NM NM NM 22.5% 19.4% NM NM
Instructure, Inc. $22.25 628 (83) 545 5.0 3.6 NM NM NM NM 50.4% 36.6% NM NM
Workiva Inc. $13.30 548 (32) 516 2.9 2.5 NM NM NM NM 22.3% 17.6% NM NM
Carbonite, Inc. $16.60 452 (49) 403 2.0 1.9 10.0 8.5 28.6 24.6 49.1% 6.8% 19.7% 21.8%
LivePerson, Inc. $7.80 452 (51) 401 1.8 1.8 21.2 17.6 NM 91.0 (6.8%) 2.8% 8.5% 9.9%
Castlight Health, Inc. $3.65 381 (116) 264 2.6 2.1 NM NM NM NM 34.4% 24.4% NM NM
Bazaarvoice, Inc. $4.45 369 (49) 319 1.6 1.5 24.5 18.1 NA NM 2.4% 4.4% 6.5% 8.4%
ChannelAdvisor Corporation $14.25 367 (63) 304 2.7 2.4 58.9 46.2 NM NM 12.7% 14.1% 4.6% 5.1%
Jive Software, Inc. $4.05 316 (100) 217 1.1 1.1 12.8 10.7 62.3 36.8 3.3% 0.8% 8.4% 9.9%
Tangoe, Inc. $7.27 287 (32) 255 1.1 1.1 10.9 NA 20.2 19.6 NA (0.0%) 10.0% NA
Park City Group, Inc. $13.65 264 (8) 256 NA NA NA NA NA NA NA NA NA NA
Brightcove Inc. $7.80 264 (34) 229 1.5 1.4 31.0 21.6 NM 65.9 11.7% 9.5% 4.9% 6.5%
Amber Road, Inc. $9.01 242 6 248 3.4 3.0 NM NM NM NM 8.3% 14.2% NM NM
Marin Software Incorporated $2.35 91 (33) 57 0.6 0.6 NM 21.5 NM NM (8.8%) (3.5%) 0.3% 2.8%
Covisint Corporation $2.10 86 (35) 51 NA NA NA NA NA NA NA NA NA NA
Mean 5.2x 4.3x 31.9x 30.4x 48.5x 47.4x 27.3% 19.2% 15.2% 15.1%
Median 5.1 4.3 29.7 25.0 53.9 47.2 24.7% 19.3% 10.6% 10.5%
10
PUBLIC COMPANY VALUATIONS Software Trading Statistics
Notes: Source: Capital IQ and Wall Street Estimates. Multiples <0 and >100 considered NM. Negative margins considered NM. Market Data as of 01/20/2017.
$MM, Except Per Share Data
Stock Trading Statistics Operating Metrics
Price Equity Net Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin
1/20/2017 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E
Business Intelligence & Analytics
Splunk Inc. $53.78 $7,296 ($939) $6,356 6.8x 5.4x 78.6x 50.4x NM NM 39.4% 27.0% 8.7% 10.7%
Fair Isaac Corporation $123.12 3,808 495 4,303 4.8 4.6 20.6 20.3 25.4 24.0 5.2% 4.9% 23.3% 22.6%
Teradata Corporation $28.47 3,698 (413) 3,285 1.4 1.5 5.4 7.4 11.5 16.5 (10.2%) (6.2%) 26.6% 20.9%
Tableau Software, Inc. $44.90 3,417 (865) 2,552 3.2 2.9 39.2 39.7 NM NM 23.4% 7.3% 8.1% 7.4%
Verint Systems Inc. $37.30 2,338 442 2,780 2.6 2.5 12.1 10.2 15.0 13.1 (5.6%) 6.1% 21.6% 24.0%
MicroStrategy Incorporated $201.55 2,304 (579) 1,725 3.4 3.3 12.5 10.5 24.5 23.8 (3.2%) 2.5% 26.8% 31.4%
Hortonworks, Inc. $9.00 547 (84) 463 2.6 2.0 NM NM NM NM 48.0% 30.0% NM NM
Gridsum Holding Inc. $11.75 338 (74) 263 4.7 3.0 NM 42.5 NM NM 55.4% 58.2% NM 7.0%
Attunity Ltd. $6.06 102 (9) 93 1.7 1.5 NM 10.6 NM 45.5 10.6% 13.3% 1.1% 14.5%
Datawatch Corporation $5.70 68 (28) 40 1.3 1.2 NM NA NM NM 3.3% 10.5% NM NA
Mean 3.2x 2.8x 28.1x 23.9x 19.1x 24.6x 16.6% 15.4% 16.6% 17.3%
Median 2.9 2.7 16.6 15.4 19.8 23.8 7.9% 8.9% 21.6% 17.7%
Vertical
Cerner Corporation $51.87 $17,610 ($120) $17,490 3.6x 3.3x 11.1x 9.9x 22.5x 20.2x 10.2% 9.2% 32.7% 33.8%
Constellation Software Inc. $447.18 9,476 41 9,518 4.5 4.0 17.5 15.5 23.9 20.4 15.8% 12.8% 25.5% 25.6%
SS&C Technologies Holdings, Inc. $31.29 6,346 2,388 8,735 5.8 5.3 14.4 12.6 19.3 16.4 51.8% 9.4% 39.9% 41.8%
Veeva Systems Inc. $42.94 5,890 (511) 5,379 10.0 8.3 32.1 26.6 63.0 54.0 31.9% 20.7% 31.0% 31.1%
athenahealth, Inc. $121.83 4,807 161 4,968 4.5 3.8 20.5 16.0 67.7 50.0 18.8% 18.9% 22.1% 23.7%
Guidewire Software, Inc. $52.96 3,893 (530) 3,363 7.6 6.4 43.1 31.6 76.5 64.3 12.0% 18.2% 17.6% 20.3%
Blackbaud, Inc. $66.72 3,101 359 3,461 4.7 4.4 19.8 18.2 35.2 30.5 14.6% 8.8% 24.0% 23.9%
CoreLogic, Inc. $35.58 3,073 1,523 4,596 2.4 2.4 9.3 9.2 15.1 14.4 26.6% (1.5%) 25.6% 26.3%
Medidata Solutions, Inc. $50.03 2,882 (70) 2,811 6.1 5.1 26.4 22.1 49.0 40.8 18.0% 19.3% 23.0% 23.0%
Ellie Mae, Inc. $83.84 2,814 (387) 2,427 6.9 5.6 21.6 17.3 38.9 37.3 39.3% 21.9% 31.8% 32.5%
RealPage, Inc. $28.90 2,326 54 2,379 4.2 3.7 19.0 16.0 38.9 32.0 21.3% 14.4% 22.0% 22.9%
Allscripts Healthcare Solutions, Inc. $11.42 2,114 1,156 3,270 2.1 1.9 11.2 9.3 20.1 17.5 12.5% 8.8% 18.7% 20.7%
WebMD Health Corp. $50.79 1,864 6 1,870 2.7 2.5 8.1 7.5 26.7 25.1 10.7% 5.5% 32.6% 33.3%
Inovalon Holdings, Inc. $11.25 1,654 (443) 1,211 2.8 2.7 12.2 11.3 35.5 34.2 (2.4%) 6.6% 23.2% 23.6%
AppFolio, Inc. $22.70 765 (18) 747 7.1 5.5 NM NM NM NM 39.8% 30.1% 2.8% 4.9%
HealthStream, Inc. $22.75 722 (101) 622 2.7 2.5 20.4 16.8 NM 89.2 9.0% 11.2% 13.4% 14.6%
Silver Spring Networks, Inc. $13.02 676 (113) 562 1.9 1.7 30.7 21.6 71.5 47.3 (39.6%) 11.9% 6.2% 7.9%
Instructure, Inc. $22.25 628 (83) 545 5.0 3.6 NM NM NM NM 50.4% 36.6% NM NM
Castlight Health, Inc. $3.65 381 (116) 264 2.6 2.1 NM NM NM NM 34.4% 24.4% NM NM
Exa Corporation $15.92 236 (22) 215 2.9 2.6 36.8 23.9 NM NM 12.0% 12.0% 8.0% 10.9%
Mean 4.5x 3.9x 20.8x 16.8x 40.3x 37.1x 19.4% 15.0% 22.2% 23.4%
Median 4.3 3.6 19.8 16.0 35.5 33.1 16.9% 12.4% 23.1% 23.7%
11
Notes:
Sources: Capital IQ as of 01/20/2017. Consensus Estimates used for CY17E figures.
For Tangoe, CY16E FCF Margin % used since no CIQ Consensus Estimate available for CY17E FCF Margin %.
When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E Revenue Growth % is 0.57.
When analyzing the same data set, R value of 2017E Revenue Multiple and 2017E FCF Margin % is 0.48.
Estimates for COVS and PCYG are not available.
PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO GROWTH AND CASH FLOW En
terp
rise
Val
ue
/ C
Y 2
01
7E
Re
ven
ue
CY 2017E Revenue Growth % + CY 2017E FCF Margin %
AZPN
BV
BLKB BOX
CALD
CARB CSLT ECOM
CSOD FIVN HUBS
INST
LPSN
LOGM
MRIN
MIME NEWR
PAYC
PCTY
QLYS
RP RNG
CRM
NOW SHOP
SPSC
TNGO
ULTI
VEEV
WDAY
WK
ZEN
TWOU
BNFT
AMBR
JIVE
JCOM
BCOV
COUP
APTI
SPLK
(1.0x)
1.0x
3.0x
5.0x
7.0x
9.0x
11.0x
(10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
R = 0.81
12
Notes:
Sources: Capital IQ as of 01/20/2017. Consensus Estimates used for CY16E Revenue figures and GAAP figures used for Sales and Marketing Expense.
For Tangoe, CIQ Consensus Estimate used for CY15 Revenue since no actual Revenue figure was reported for that period.
SaaS companies with Annual Change in Revenue (CY16E) / LTM Sales and Marketing Expense less than or equal to 0.0 placed at 0.0 x-axis position and excluded from R calculation (AZPN, LPSN, MRIN). The Annual Change in
Revenue (CY16E) / LTM Sales and Marketing Expense for these companies are provided in parenthesis.
Estimates for COVS and PCYG are not available.
PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO S&M EFFECTIVENESS En
terp
rise
Val
ue
/ C
Y 2
01
6E
Rev
en
ue
Annual Change in Revenue (CY16E) / LTM Sales and Marketing Expense
CRM
NOW
ULTI
SHOP
BLKB
PAYC
ZEN
CSOD
LOGM
PCTY
RP
HUBS
BOX
RNG
TWOU
QLYS SPSC
BNFT CALD
MIME
FIVN
WK
INST
CSLT
BV CARB
JIVE TNGO
ECOM
VEEV
WDAY
NEWR
AMBR
AZPN (-0.1x)
LPSN (-0.2x)
MRIN (-0.3x)
JCOM
BCOV
COUP
APTI
SPLK
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8
R = 0.63
13
RECENT ACQUISITIONS Select Software M&A Transactions
Notes: Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 01/20/2017. Transactions highlighted in yellow denote Private Equity Acquirers. (1) Aggregate Value represents the majority stake being acquired by KKR. The Blackstone Group will maintain a minority stake.
(2)
($MM)
Announced Aggregate AV / Revenue
Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description
1/20/17 Hosted Services $84 NA NAProvides domain name registration and related services to corporate and consumer website owners. Related
services include web hosting and an auction service for website domain name resellers
1/19/17 Application Software $800 4.6x NAProvides project and portfolio management SaaS and related systems integration services for enterprises.
Software includes features for plan design, agile project portfolio management and cost analysis and control
1/17/17 Storage $650 6.5x NA
Provides backup and recovery storage systems and storage management software for businesses. Storage
systems feature virtual machine (VM) level management, in-line de-duplication and compression of data,
including backup copies of VMs that can be replicated to secondary datacenters
1/9/17 Information Management $425 NA NA
Provides social collaboration online software for enterprise employees and consumers. Software allows
employees and consumers to create "boards" where members collaborate to complete tasks for a project,
with features that include messaging and notifications
1/4/17 Application Software $134 19.1x 7.0x
Provides health benefits management SaaS for businesses. Software provides features for financial
management, customized health benefit plans, and data and analytics reporting. Also provides mobile access
and systems integration services
12/23/16 Application Software $53 NA NAProvides cloud-based global import and export trade reference software and an online database of analysis
content, cargo details and related company profiles for businesses at www.datamyne.com
12/20/16 Application Software $67 NA NA Provides client reporting software and services for the investment and financial services sectors globally
12/20/16 Security $560 NA NAProvides digital rights management SaaS for businesses and content producers, as well as an online digital
music and video content recognition database for consumers and the entertainment sector
12/19/16 Application Software $160 3.9x NA
Provides insurance policy administration and management software as a service (SaaS) and on-premise for
property and casualty insurance companies. Features include claims management, billing and document
management. Also provides related services
12/19/16 Mobility $67 NA NADesigns and develops graphical user interfaces (GUI) for mobile phones and automotive displays, to
automotive and other embedded display manufacturers
12/13/16 Application Software $130 NA NA
The vendor management software and related assets of Beeline, which provides vendor management
systems (VMS) for businesses globally. Software provides spending management, procurement cycle
automation and quality control monitoring
12/12/16 Application Software $60 NA NA
Provides on premise and cloud-based channel and contract management software for businesses in the life
sciences industry. Software provides features for revenue management, contract lifecycle management and
performance analytics reporting
12/9/16 Security $850 4.0x NA
The identity management business of 3M, which consists of 3M Cogent, a biometric identification system,
and 3M's document reader and secure materials systems and software. Assets are used by civil
identification, border control and law enforcement agencies
12/7/16 Application Software $850 NA NA
Sungard's public sector business, which provides ERP administration SaaS for government and public safety
entities and the K-12 business, which provides cloud-based administration and student management
software for K-12 educators
12/6/16Hosted Services / Managed
Security Services $1,800 2.6x NA
Provides network and wireless network IT security auditing, compliance and penetration testing services for
businesses and government agencies globally. Also operates as an information security VAR and provides
security systems integration services
( )
(Public Sector & K-12 Education Businesses)/
(Identity Management Business)
)(
( )
( )
( )
( )
( )
14
RECENT ACQUISITIONS Select Software M&A Transactions
($MM)
Announced Aggregate AV / Revenue
Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description
12/6/16 Application Software $2,800 NA 5.2xProvides ERP, HR management, CRM and project management software, SaaS and systems integration
services, for government contractors, professional services firms and other project-based businesses globally
12/6/16 Information Management $854 2.9x 2.7xProvides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas,
technology and manufacturing industries to securely exchange documents and sync files
12/2/16 Application Software $65 6.5x NA Provides IoT predictive analytics, data mining and event processing software and SaaS for businesses
12/1/16 Infrastructure Management $636 5.1x NA
Provides IT process automation and job scheduling software for businesses globally. Applications manage file
transfers, virtual machine provisioning, application release management and error identification and
remediation
11/30/16 Information Management $112 2.2x NAProvides enterprise data quality SaaS for business. Software provides features for data analysis, profiling,
validation and cleansing for businesses operating in the retail, insurance, healthcare and financial industries
11/29/16 Application Software $190 3.8x NA Provides online advertising campaign management and ad-serving SaaS for businesses
11/20/16 Security $2,362 3.6x 3.3x Provides online identity theft and credit rating monitoring software for consumers and businesses in the US
11/15/16 Information Management $153 NA NAProvides Industrial Internet of Things (IIoT) data integration automation and analytics SaaS for businesses in
the energy, aviation and manufacturing sectors
11/14/16 Application Software $915 10.2x NA
Provides field service and contract management SaaS and mobile applications for service-oriented
businesses and enterprises. Software provides features for dispatch and scheduling, warranty, parts and
return management and field service metrics reporting
11/10/16 Application Software $270 NA NA
Provides asset and financial management SaaS to businesses and investors in the global aviation industry.
Software provides features for investment management, short term and long term bridge financing, contract
financing, customized portfolio securitization facilities, and transaction and assess risk monetization
11/8/16 Application Software $300 7.9x NA
Provides SAP-based project, plant and asset management ERP software for enterprises. Software provides
features for scheduling, project planning, workforce management and analytics reporting, accessible on
desktop systems and mobile devices
10/31/16 Information Management $632 NA 4.2x
Provides data management SaaS to the manufacturing and construction industry in the United States and
Canada. Software provides features for financial risk management, vendor management, commercial
construction project search engines, analytics and reporting, and product marketing to industry
professionals
10/27/16 Information Management $55 NA 3.7xProvides team collaboration messaging SaaS that enables physicians at hospitals to communicate with
patients via a managed messaging system
10/24/16 Security $58 NA 3.7x
Provides IP traffic classification and network intelligence software used in physical, SDN and NFV
architectures. Supplies software to vendors that embed real-time application visibility in their products for
cybersecurity, traffic optimization, service chaining and quality of service, and analytics
10/21/16 Information Management $410 NA NA
Provides electronic evidence and data recovery SaaS and services for law firms, government agencies and
corporate law departments. Software provides features for data collection, portfolio and project
management, forensic review and data replication and destruction
( )
( )
Notes: Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 01/20/2017. Transactions highlighted in yellow denote Private Equity Acquirers.
15
RECENT ACQUISITIONS Select Software M&A Transactions
($MM)
Announced Aggregate AV / Revenue
Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description
10/20/16 Security $55 NA NA
Provides cloud application control (CAC) software for enterprises. Software enables detection and targeted
attack protection (TAP) for enterprises using SaaS applications on enterprise networks and on mobile devices
against malware attacks
10/4/16 Security $60 NA NA
Provides cloud-based third-party access control SaaS to IT businesses, enabling access to applications that
are hosted in data centers and to Microsoft SharePoint on enterprise networks. Software also provides data
path protection, identity access management and application security
10/4/16 Application Software $250 NA 1.9x Provides retail brand and e-commerce online shopping marketing and advertising SaaS for businesses
10/4/16 Application Software $680 13.1X NA
Provides real-time audience data management and targeting SaaS for marketers, Web publishers and ad
agencies. Software enables continuous customer and prospect data collection from digital interactions,
including website visits or ads served
9/29/16 Application Software $180 2.4x NA
Provides parking software, SaaS and systems that enables parking management, enforcement, permits,
collections, access and revenue control. Also provides related handheld input devices and software
development services
9/26/16 Application Software $153 NA NA
Provides email and digital subscription management SaaS that enables US government agencies to provide
citizens with information about such topics as local emergencies, events, council minutes and other matters
through email, wireless alerts, and RSS feeds
9/22/16 Data Centers & Facilities $185 NA NA
Provides facilities management SaaS for sustainable resource planning for multi-site corporations. Software
is used to measure and manage carbon emissions and waste and allocate energy resources throughout
multiple facilities
9/20/16 Infrastructure Management $60 12.0x NAProvides Apache JMeter open-source load testing SaaS, enabling mobile app performance testing and
monitoring for Web, mobile app, micro services and API developers and businesses
9/19/16 Application Software $135 NA NAThe technology assets of INVeSHARE Inc. which provides embeddable Web-based shareholder
communication SaaS to brokerage firms and shareholders
9/19/16 Enterprise Networking $1,254 3.5x 3.4xProvides DNS, DHCP, and IP address (DDI) management and network service delivery software and
management appliances for enterprises, government agencies and service providers worldwide
9/12/16 Information Management $1,620 2.7x NAEMC's Enterprise Content Division, which provides enterprise content management SaaS and on-premise
software, including the Documentum, InfoArchive, and LEAP product lines, for businesses and corporations
9/8/16 API Management SaaS $562 6.1x 5.0x
Provides API management SaaS for businesses globally. Software enables the integration, interfacing and
management of third-party applications and services for software developers creating branded mobile and
cloud applications
9/7/16 Security Software $6,078 NA NA
Provides network anti-malware and PC security software for consumers and enterprises worldwide. Software
includes features for anti-virus, anti-spyware, anti-spam, intrusion prevention, secure messaging, Web
filtering and vulnerability management
9/7/16 Security Software $8,730 2.8x NAHPE's software business division, which provides systems management, storage management, content
management, applications development, imaging and virtualization management software for enterprises
8/31/16 Application Software $1,402 3.4x 3.1xProvides VoIP, unified communications, PBX and call center management software and software-as-a-service
(SaaS) for businesses globally. Also provides managed communications and disaster recovery services
( )
( )
(Software Business Division)
(Technology Assets)
( )
(ECM Business)
( )
Notes: Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 01/20/2017. Transactions highlighted in yellow denote Private Equity Acquirers.
16
RECENT ACQUISITIONS Select Software M&A Transactions
($MM)
Announced Aggregate AV / Revenue
Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description
8/18/16 Internet Software & Services $122 3.9x NAProvides online content management SaaS for Web publishers in the medical, scientific, technical and media
industries worldwide. Also provides online hosting of journalistic content
8/1/16 Application Software $80 5.3x NAProvides project and portfolio management (PPM), application portfolio management (APM) and predictive
portfolio analysis (PPA) SaaS for the healthcare, government, education and commercial sectors
8/1/16 Information Management $582 NA NA
Provides team collaboration and document management SaaS for businesses. The company’s solutions are
used in various platforms, such as iPad and iPhone, Macs, PCs, Windows, Apple watches, Android phones,
Android tablets, and on the Web
8/1/16 Systems Software $2,184 7.0x 5.8xProvides GPS-based vehicle tracking and mobile workforce management SaaS for service-based businesses
and the construction industry globally
7/28/16 Application Software $8,709 9.7x 7.7xProvides financial management and planning, ERP, e-commerce, CRM, SCM, and business intelligence (BI)
analytics software as a service (SaaS) for businesses globally
7/27/16 Information Management $1,009 1.9x 1.9x
Provides e-discovery and document review software for businesses, the legal sector and government
agencies globally. Also provides a searchable online database of Chapter 7, 11 and 13 bankruptcy court
filings and outsourced e-discovery and class-action lawsuit claims
7/26/16 Information Management $1,800 NA NAThe GoTo businesses of Citrix Systems provides Web conferencing and real-time team collaboration SaaS for
small- to medium-sized businesses
7/21/16 Application Software $215 NA 3.6xProvides customer engagement and customer analytics SaaS for businesses in the telecom, insurance,
finance, travel, hospitality and retail sectors
7/21/16 Application Software $130 14.4x NAProvides marketing automation, customer analytics, and sales management SaaS for retailers. Software
enables marketers to collect and deliver user generated content (UGC) from various mediums
7/18/16 Information Management $600 4.0x NAProvides web browsers for fixed and mobile computers and smartphones for businesses and consumers
globally
7/13/16 Security $497 3.8x 3.5xProvides single sign-on (SSO) and password management software, as well as appliance-based
authentication and employee access management systems, for hospitals and healthcare providers
7/7/16 Anti-virus & Security Software $1,463 3.4x 3.3x
Provides anti-virus, anti-malware, anti-spam, firewall, mobile device and endpoint security software for
consumers and businesses globally. AVG Technologies began trading on the NYSE under the ticker symbol
AVG in February 2012
7/5/16 Application Software $3,300 3.3x NA Provides ERP, CRM and SCM software and SaaS for businesses globally
6/30/16 Infrastructure Management $237 1.5x NAProvides financial and payment processing software and services for higher education institutions. Higher
One began trading on the NYSE under the ticker symbol ONE in June 2010
6/28/16 Application Software $125 NA NAProvides retail predictive analytics SaaS that uses big data to enable retailers and wholesalers to forecast
merchandise planning, assortment, category management, pricing and supply chain optimization
Goloden Brick SilkRoad Fund Management
Yonglian Investments Co.
Beijing Kunlun Tech Co.
Consumer Assets
/
)(
( )
( )
Notes: Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 01/20/2017. Transactions highlighted in yellow denote Private Equity Acquirers.
17
RECENT ACQUISITIONS Select Software M&A Transactions
($MM)
Announced Aggregate AV / Revenue
Date Acquirer Target Target Sector Value (AV) LTM NTM Target Description
6/28/16 Security $293 NA NA
Provides access control and anti-data leakage SaaS to enable businesses to secure cloud applications and
provide data loss prevention (DLP). The SaaS works on cloud services such as Amazon Web Services, Box,
Google Apps, Dropbox and Salesforce
6/20/16 Application Software $2,200 1.6x NA
Provides BI analytics and corporate performance management, database management, identity and access
management, network security management, endpoint integrity and identity and access management
software and SaaS for businesses
6/20/16 Information Management $315 NA 2.7x
The HP Exstream, HP Output Management, HP TeleForm and HP LiquidOffice software and service assets of
HP, which enable automated customer communication and multi-channel document management and
delivery for businesses
6/13/16 Internet Content & Commerce $26,188 8.1x 6.7x Provides a social networking website for professionals and businesses globally through www.linkedin.com
6/12/16 Security $4,650 7.8x NAProvides enterprise cybersecurity, Web traffic management and mobile device security systems and
software as a service (SaaS) for businesses globally
6/7/16 Application Software $175 3.5x NAProvides supply chain management (SCM) software, SaaS and related integration services to the chemical
and oil industries globally
6/2/16 Information Management $163 NA 2.2xProvides e-discovery, enterprise search and categorization SaaS and managed services for businesses
globally. Software also enables predictive and contract analysis, and enterprise knowledge management
6/2/16 Application Software $2,615 4.1x 3.6xProvides on-premise and cloud-based business intelligence (BI) analytics and reporting software for
businesses, government agencies and educational institutions globally
6/1/16 Application Software $2,913 11.5x 9.1x
Provides enterprise cloud-based e-commerce SaaS for Web merchants and multi-channel online retailers.
Software includes features for order management, multiple e-commerce site creation and maintenance and
mobile transaction processing
6/1/16 Infrastructure management $500 6.3x 5.0x
Provides Web-based IT service management (ITSM) SaaS for managed service providers and IT support
businesses globally. Software integrates features including remote monitoring, mail security, backup and
recovery and IT service desk
6/1/16 Security $600 NA NA
Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and
authentication SaaS. Software enables an organization's employees to use a single sign-on (SSO) to securely
access Internet applications and Web services
All Software
Median 4.0x 3.6x
Mean 5.6x 4.5x
PE
Median 3.5x 3.5x
Mean 2.9x 2.9x
( )
( )
( customer communication
management assets )
/
Notes: Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 01/20/2017. Transactions highlighted in yellow denote Private Equity Acquirers.
18
RECENT PRIVATE FINANCINGS
($MM)
Deal Date CompanyAmount
Raised Brief Description Investors
1/18/17 Salsify $30
Provider of a cloud-based product-content management software. The company develops an e-commerce product
management platform that allows businesses to more easily manage their online products and deliver product
content to digital shoppers.
Matrix Partners, North Bridge Venture Partners, Underscore.VC, Venrock
1/18/17 ProtectWise $50
Provider of enterprise network security. The company is developing a cloud-based platform focused on
cybersecurity. Its platform, currently operating as a subscription-based service, offers automated smart
retrospection, security visualization and on-demand deployment, among other features.
Arsenal Venture Partners, Crosslink Capital, Paladin Capital Group, Tola Capital, Top Tier
Capital Partners, Trinity Ventures
1/18/17 InsideSales.com $50
Provider of a sales automation and predictive analytics platform. The company provides a cloud based sales
acceleration platform built on a predictive and prescriptive self-learning engine for efficient handling of sales lead
management.
EPIC Ventures, Hummer Winblad Venture Partners, Ireland Strategic Investment Fund, Kleiner
Perkins Caufield & Byers, Microsoft, Polaris Partners, QuestMark Partners, SharesPost, US
Venture Partners, Zetta Venture Partners
1/18/17 Deputy $25
Developer of workforce technology designed for time tracking and staff management. The company's cloud-based
platform simplifies scheduling, timesheets, tasking and other employee communications, providing business
managers with the tools to track and manage employees.
OpenView Venture Partners
1/18/17 Collibra $50
Provider of data governance software for organizations. The company offers business semantics glossary, a web-
based collaborative business to information technology (IT) data governance platform with capabilities to manage
business definitions, relations and rules.
Battery Ventures, Dawn Capital, ICONIQ Capital, Index Ventures, Newion Investment
Management
1/17/17 Zoom Video Communications $100
Developer of enterprise video and web communications technology designed to unify online meetings, group
messaging and a software-defined video conference room platform. The company's video conferencing services
enable video, audio and screen-sharing experience across multiple web and mobile systems.
AME Cloud Ventures, Emergence Capital Partners, Qualcomm Ventures, Sequoia Capital
1/17/17 OPAQ Networks $21
Provider of a cloud-based management service designed to simplify, centralize and secure organizations networks.
The company's management platform integrates security in a way that reduces complexity and costs, tightens
security control and adapts to businesses and regulatory requirements.
Columbia Capital, Harmony Partners, Zero G Capital Management
1/17/17 letgo $175
Provider of a secondhand mobile-marketplace designed to buy and sell locally. The company's platform uses
artificial intelligence and image recognition capabilities enabling users to post items for sale in a few seconds by
simply taking a photo.
14W, Accel Partners, Eight Roads Ventures, FJ Labs, Insight Venture Partners, Mangrove
Capital Partners, Naspers, New Enterprise Associates
1/16/17Youxinpai (Beijing) Information
Technology Co.$500
Operator of a second-hand car online auction platform created to provide the most time-sensitive second-hand car
trading services. The company's online auction platform for second-hand automobiles enables car dealers, car
rental agencies, car rental companies, second-hand car operators and car owners to buy and sell used cars.
Hillhouse Capital Management, Huasheng Capital, Jeneration Capital, Kohlberg Kravis Roberts,
Tiger Global Management, TPG Capital, Vision Capital, Warburg Pincus
1/13/17 Xiaoshouyi $40Provider of a customer relationship management platform. The company provides online software platform that
allow companies to automate their sales force management.Matrix Partners China, Sequoia Capital, Tencent, ZhenFund
1/13/17 Perfect Sense Digital $22
Operator of a full-service technology company designed to drive innovations in web and mobile development for
corporations worldwide. The company's enterprise digital application development platform seamlessly integrates
with existing systems and data sources, while providing editorial tools to its users.
Carrick Capital Partners
1/13/17Cui Yutao Health Management
Center$20
Provider of mobile internet parenting health guidance, online interaction and offline services. The company offers
children's physical and mental health management platform which provides online health consultation, preventive
health services, keep baby feeding record and parenting guidance.
GGV Capital, Highlight Capital, Wu Capital
1/12/17 HouseCanary $33
Developer and operator of a real estate analytics platform. The company's platform aggregates millions of data
elements, including more than four decades of property data and a rapidly expanding arsenal of proprietary data
calculations and analytics, to accurately define and forecast values and market influences.
Alpha Edison, Bryant Stibel, ECA Ventures, Egon Durban, Hillspire, Nikesh Arora, Raven
Ventures
1/11/17 Transmit Security $40
Developer of a mobile security system for application developers. The company offers tools that allow mobile
application developers to implement more advanced authentication techniques such as eye, fingerprint or facial
recognition, via a user's mobile device.
Rakesh K. Loonkar, Mickey Boodaei
1/11/17 PayClip $24Provider of a mobile merchant payment system intended for an easy way to accept credit card transactions. The
company's mobile merchant payment system easily and securely accepts credit and debit card transactions.General Atlantic
Notes: Source: Pitchbook. Reflects deal activity through 01/20/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.
19
RECENT PRIVATE FINANCINGS
($MM)
Deal Date CompanyAmount
Raised Brief Description Investors
1/11/17 iZettle $127Developer of a mobile payment application for businesses and individuals. The company offers a card-reader that
plugs into mobile devices and registers to tools that enable users to accept card payments.
83North, American Express Ventures, Creandum, Dawn Capital, Greylock Partners, Index
Ventures, Intel Capital, MasterCard, MCI Capital, Northzone Ventures, Santander
InnoVentures, SEB Private Equity, Zouk Capital
1/11/17 Funding Circle $102Operator of a lending platform for small businesses. The company offers a peer-to-peer lending marketplace for
business loans, where people and organizations can directly lend to small businesses.
Accel Partners, Baillie Gifford, DST Global, Index Ventures, Ribbit Capital, Rocket Internet,
Sands Capital Ventures, Temasek Holdings, Union Square Ventures
1/11/17 Fino Paytech $59
Provider of banking technology platform designed to support banking related payment services. The company's
banking platform offers consultancy services and financial literacy enabling business correspondents to make and
receive payments through their banking channels.
Bharat Petroleum Corporation, ICICI Lombard General Insurance Company, ICICI Prudential
Life Insurance Company
1/11/17 FarmLogs $22
Developer of a digital farm management platform. The company's platform enables farmers to forecast and
measure farm profits, track expenses and manage risk. It also enables farmers to detect yield threats and access
field-specific data including rainfall tracking, soil composition maps and yield maps.
Drive Capital, Huron River Ventures, Hyde Park Angels, Naspers Ventures, Sam Altman, SV
Angel
1/11/17 EasyStack $50
Provider of OpenStack cloud computing for Asia Pacific based enterprise clients. The company provides cloud
operating system and open-source software platform for public cloud, private cloud, hosted cloud and hybrid cloud
platform.
CASH Capital
1/11/17 CompareEuropeGroup $21
Provider of a financial comparison platform. The company helps people across Europe with their decisions over
personal finance with free and independent online comparison tools for insurance, credit cards, personal loans and
other financial products.
ACE & Company, Mark Pincus, Nova Founders Capital, Pacific Century Group, Peter Thiel, SBI
Holdings
1/10/17 Panzura $32Provider of a software for enterprise cloud storage. The company provides Application Cloud Controller (ACC), an
enterprise-grade tool which helps to protect, manage, share and explore cloud-based files of enterprises.
Chevron Technology Ventures, Matrix Partners, Meritech Capital Partners, Opus Capital,
Western Digital Capital
1/10/17 Lalamove $30Provider of an on-demand delivery platform. The company provides a mobile application for home and business
users in Asia to connect with drivers to have them deliver goods, move or assist in other transportation needs.
Asia Plus Securities, Blackhole Capital, Crystal Stream Capital, MindWorks Ventures, Xiang He
Partners
1/9/17 Activehours $22
Provider of an online service that enables employees to access earned wages at their discretion. The company
provides a mobile application that allows employees to upload work hours, electronic time sheets, maintain a
record of work hours and get paid at their discretion.
Felicis Ventures, March Capital Partners, Matrix Partners, Ribbit Capital
1/6/17 Networked Insights $30
Provider of customer intelligence services for advertisers, marketers and public relations professionals. The
company analyzes the social web to help agencies and brand marketers to make strategic and tactical decisions. It
also provides audience sync, media sync and content sync services in the United States.
4490 Ventures, American Family Ventures, Cherng Family Trust Office, Goldman Sachs
Merchant Banking Division, Kegonsa Capital Partners, Sands Capital Ventures
1/6/17 Bitglass $45Developer of enterprise security software. The company provides a platform to secure corporate data that resides
on third-party servers and travels over third-party networks to employee-owned mobile devices.New Enterprise Associates, Norwest Venture Partners, SingTel Innov8, The Future Fund
1/5/17 Reputation.com $20Provider of reputation management services. The company offers an online platform with reputation management
services that enables individuals and businesses to control their privacy and reputation.
Ascension Ventures, August Capital, Bessemer Venture Partners, Focus Ventures, Icon
Ventures, Kleiner Perkins Caufield & Byers
1/5/17 PayNearMe $21Provider of a cash-based payments platform. The company operates a cash-based payments network that allows
consumers to pay rent, utility bills and loans, as well as buy tickets and other products online.NA
1/5/17 Payfone $24
Provider of identity-verification services for online transactions. The company offers businesses and their
customers with a patented mobile authentication technology software that protects against identity theft and
social engineering attacks.
American Express, Andrew Prozes, BlueCross BlueShield Venture Partners, Early Warning
Services, Maclab Development Group, Opus Capital, Relay Ventures, Rogers Venture Partners,
RRE Ventures, Strauss Zelnick (Strauss Zelnick), Transaction Network Services, Verizon
Ventures
1/5/17 Fugue $41Developer of a cloud operating system for digital enterprises. The company's software product offers security and
enables businesses to build, operate and maintain cloud infrastructure.Australia Future Fund, Maryland Venture Fund, New Enterprise Associates
Notes: Source: Pitchbook. Reflects deal activity through 01/20/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.
20
RECENT PRIVATE FINANCINGS
($MM)
Deal Date CompanyAmount
Raised Brief Description Investors
1/5/17 Diyi Chedai $52Operator of an online loan-financing platform for the automotive industry. The company offers Web-based car loan
financing to car buyers, dealers and car logistics service providers.360 Jinrong, Addor Capital, CreditEase, Matrix Partners China, Youjin Capital
1/5/17 CloudCraze $20
Provider of an enterprise based cross-channel e-commerce platform. The company delivers enterprise class cross
channel e-commerce platform that allows its clients to share data, processes across e-commerce platform
managed through Salesforce interface.
Insight Venture Partners, Salesforce Ventures
1/4/17 99 $100
Provider of an application to request and book taxis. The company develops a mobile application for customers to
book taxis online through their smartphones, using its geo-location feature, connecting drivers and passengers
across Brazil.
Didi Chuxing, Riverwood Capital
1/3/17 Chushou TV $58Operator of mobile video live streaming platform specialized in mobile games. The company is a social networking
platforms which was created to provide interaction sites and mobile games.Feidian Capital, GGV Capital, Qiming Venture Partners, Shunwei Capital
12/27/16 Tiger Brokers $29Owner and operator of an online brokerage firm. The company provides brokerage services for Chinese investors
wanting to invest in overseas securities, particularly stocks listed on the U.S. and Hong Kong exchanges.
China Renaissance, CITIC GoldStone Fund Management, Huagai Capital, K2 Ventures,
ZhenFund
12/26/16 Freee $29Provider of a mobile accounting software for small business owners. The company offers an automated online
accounting software designed to formulate financial reports.
Chibagin Capital, DCM Ventures, Japan Co-Invest Limited Partnership, Nissay Insurance
Agency, Nissho Electronics, Salesforce Ventures, SBI Investment, SPARX Group
12/22/16 Rappi $53
Provider of on-demand delivery services that connects consumers with local stores. The company designs and
develops an application where users can shop for food items and groceries online and can get them delivered to
their homes. It also offers delivery of food from restaurants for lunch and dinner.
Andreessen Horowitz, Burch Creative Capital, FJ Labs, FLOODGATE, Foundation Capital,
monashees+, ZX Ventures
12/22/16 Huochebang $115
Provider of an online truck logistics platform. The company provides an O2O (Online-to-Offline) truck freight
platform that provides integrated services to truckers and shippers in China. It also helps truck drivers find
commodities to transport and vacant parking lots, facilitates truck sales and used truck auctions in China.
All-Stars Investment, DCM Ventures, Genesis Capital, International Finance Corporation,
Tencent
12/20/16 Optoro $30
Provider of cloud-based tools for the management and sale of returned, damaged and excess retail inventory. The
company offers cloud-based, multi-channel selling technology, online remarketing expertise and full suite of
business intelligence tools for its clients to manage their reverse logistics and supply chain.
Generation Investment Management, Kleiner Perkins Caufield & Byers, Maryland Venture
Fund, RevolutionGrowth, SWaN & Legend Venture Partners, Tenfore Holdings, United Parcel
Service
12/20/16 Dynamic Yield $22
Developer of software systems for maximizing Web-traffic monetization. The company operates as a SaaS model
and helps businesses increase revenue by measuring the engagement of their audience with each page and
individual in-page components and providing optimization insights.
Baidu, Bessemer Venture Partners, ClalTech, Global Founders Capital, Innovation Endeavors
Management Company, Marker, Vertex Ventures
12/20/16 Changing Education $118Provider of online teaching platform. The company's platform connects private teachers with students to facilitate
after-school tutoring services in China.
Frees Fund, IDG Capital Partners, Sequoia Capital, Tal Education Group, Trustbridge Partners,
Xueersi
12/15/16 Zibby $103
Provider of a lease-to-own payment option for online shoppers. The company offers a platform that integrates with
e-retailer's storefront and checkout processes to provide a financing option for under-banked and non-prime
consumers to buy electronics, appliances, furniture and other durable goods.
Victory Park Capital
12/15/16 Personal Capital $75
Provider of online wealth management services. The company offers personal wealth management by combining
proprietary software tools and analysis along with personal advisors that enables clients to analyze cashflow,
monitor net wealth and review their portfolio.
IGM Financial
12/15/16 Databricks $60Developer of an analytical software for business organizations. The company engages in providing an open source
processing engine that enables enterprises to analyze, manage and extract value from big data sources.Andreessen Horowitz, In-Q-Tel, New Enterprise Associates, SineWave Ventures
12/14/16 Tripping $35Provider of a hospitality network for travelers, expats and locals. The company provides an online platform for
users to book vacation homes and short-term rentals.Adams Street Partners, Princeville Global
Notes: Source: Pitchbook. Reflects deal activity through 01/20/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.
21
RECENT PRIVATE FINANCINGS
($MM)
Deal Date CompanyAmount
Raised Brief Description Investors
12/14/16 StashInvest $25
Developer of a mobile investment application. The company develops a mobile application for millennials that helps
them to invest in securities based on their goals, interests and beliefs. It also provides financial guidance to the users
for managing their investments.
Breyer Capital, Entrée Capital, Goodwater Capital, Valar Ventures
12/14/16 One $20Developer of policy-issuance and management software. The company develops software which enables insurance
agencies to find and manage general insurance policies best suited to their users.AXA Strategic Ventures, H&Q Asia Pacific, MassMutual Ventures
12/14/16 Conversica $34
Provider of lead engagement software for marketing and sales organizations. The company provides an AI-driven
lead engagement software for marketing and sales organizations for companies to find and secure customers by
automatically contacting, engaging, qualifying and following up with leads via natural, two-way email conversations.
Green D Ventures, Kennet Partners, Providence Equity Partners, Recruit Holdings, Toba
Capital, Wellington Financial
12/14/16 BillFront $35
Developer of a platform for application developers to access revenue. The company offers an application based on
data-driven risk management methodology, which connects directly to media companies' invoicing systems and
automatically suggests eligible invoices for financing.
4finance Holding, FinLeap
12/13/16 Survios $30Developer of virtual-reality gaming applications. The company develops active VR games designed to immerse users
with images, sounds, tactile presence and dynamic spectating. Its flagship game is Raw Data for the HTC Vive.Metro-Goldwyn-Mayer Studios
12/12/16 Pendo $20
Provider of a SaaS based data analytics platform. The company provides software product managers and teams
with an integrated platform to improve the product experience, to extend their product to capture all user behavior,
gather feedback, and provide contextual help inside their applications.
Battery Ventures, Contour Venture Partners, Core Capital Partners, IDEA Fund Partners,
Salesforce Ventures, Spark Capital
12/12/16 Nasuni $25Provider of storage as a service for enterprises. The company offers cloud-based data storage services to store,
protect, share and access all enterprise files through a single platform.
Flybridge Capital Partners, North Bridge Venture Partners, Sigma Partners, Sigma Prime
Ventures
12/12/16 JetSmarter $105
Developer of a mobile application that connects travelers to private jets. The company's application helps in
connecting people to private jets at attractive fares, with worldwide itineraries, real-time availability and instant
bookings.
Jet Edge, KZ Capital, Saudi Royal Family, Shawn Carter
12/12/16 Dynamic Signal $25
Provider of a company communications platform. The company offers a software platform designed to give
employees a personalized experience based on their role, location, seniority and interests. The platform enables
them to follow the company brand across a variety o channels and stay up to speed on relevant industry news.
Akkadian Ventures, Focus Ventures, Microsoft Ventures, Rembrandt Venture Partners, Time
Warner Investments, Trinity Ventures, Venrock
12/9/16 Paytm $108
Provider of digital goods and mobile commerce platform. The company engages in m-commerce and e-commerce
by enabling telecom operators and enterprise merchants to offer m-commerce and e-commerce services like
mobile prepaid recharge, postpaid mobile bill payment, landline bill payment, movie ticketing, travel bookings,
flower delivery, DVD rental, shopping, utility bill payment to subscribers.
Alibaba Capital Partners, Ant Financial, MediaTek Ventures, SAIF Partners, Temasek Holdings,
The Goldman Sachs Group
12/5/16 Aryaka Networks $45Provider of cloud-based platform for network optimization. The company, through its network optimization
software, enables communication, data center consolidation, server storage centralization and disaster recovery.InterWest Partners
12/1/16 Tamr $25Provider of data integration platform. The company connects and enriches the vast reserves of underutilized
internal and external data, allowing enterprises to use all their data for analytics and decision making.
GE Ventures, GV, Hewlett Packard Pathfinder, MassMutual Ventures, New Enterprise
Associates, SineWave Ventures, Thomson Reuters, Work-Bench, Working Lab Capital
12/9/16 Houseparty $52Developer of live video streaming platform. The company has developed a live video platform that lets people
distribute, influence and interact with live video using their Twitter and Facebook accounts.Aleph, Comcast Ventures, Greylock Partners, Sequoia Capital
12/8/16 Tangible Play $24Developer of a digital learning platform and device. The company provides a suite of mixed-reality experiences
through reflective artificial intelligence technology for early childhood development, research and learning.
Accel Partners, Collaborative Fund, Houghton Mifflin Harcourt Publishing, K9 Ventures,
Mattel, Sesame Workshop, Upfront Ventures
12/8/16 Procore Technologies $50
Provider of an online tool for construction project management. The company provides construction management
software that allows the client to solicit bids based on the bidding documents and contracts prepared in the detailed
design phase of the project.
ICONIQ Capital
Notes: Source: Pitchbook. Reflects deal activity through 01/20/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.
22
RECENT PRIVATE FINANCINGS
($MM)
Deal Date CompanyAmount
Raised Brief Description Investors
12/7/16 SnapLogic $40Provider of a unified data and application integration platform. The company provides an elastic enterprise
integration platform that connects data, applications and devices for digital businesses.
Andreessen Horowitz, Capital One Growth Ventures, Ignition Venture Partners, NextEquity
Partners, Triangle Peak Partners, Vitruvian Partners
12/7/16 Podotree $107
Developer of educational based applications and content for tablets and smartphones. The company is a developer
of entertainment, educational and interactive mobile applications which provide multilingual education based
applications and content for tablets and smartphones.
GIC
12/7/16 KeyMe $25
Developer of an application for key duplication. The company has developed a mobile application that enables
customers to scan, save and share a digital copy of their key. Customers have the ability to use the application at
kiosks in major retailers or order and ship copies to their home.
Benefit Street Partners
12/7/16 Finicity $42Provider of a real-time financial data aggregation and insight platform. The company provides a cloud-based
financial platform to provide solutions for financial management, payments and credit decision-making.Experian
12/7/16 Face++ $100Provider of a facial recognition technology. The company provides an API and SDK, along with custom cloud
services, for companies that want to use its facial recognition technology.
CCB International Asset Management, Comet Labs, Foxconn Technology Group, Legend Star,
Qiming Venture Partners, Sinovation Ventures
12/6/16 PatientPing $32
Developer of a real time medical notification platform. The company is building a national community of engaged
providers who receive real-time clinical notifications whenever and wherever their patients receive care. It offers a
platform for doctors to upload their patient data and records so that they can be notified about their patients' visit
to other doctors in real time.
Andreessen Horowitz, Leerink Transformation Partners
12/6/16 High Fidelity $22
Provider of a virtual reality platform. The company specializes in developing a next-generation virtual world,
enabling rich avatar interactions with the help of sensor-equipped hardware, simulated and served by derives
including phones, tablets, laptops and desktops.
HTC
12/6/16 Exclaimer $25Provider of email utility software. The company's products include email signature software, next generation email
archiving, email auto response system, business grade anti-spam and email image analysis technology.Livingbridge
12/5/16 Accompany $20
Developer of an eponymous relationship intelligence platform. The company's platform helps professional curate
and manage their network by integrating each user's email, contacts, social and professional feeds and calendars to
provide real-time insights and surface-level content about one's network.
Charles River Ventures, Ignition Venture Partners
12/2/16 Zola $25Provider of a wedding registry and planning platform. The company provides an online wedding registry that allows
couples to choose products from a number of different brands and even set up a cash fund.Lightspeed Venture Partners
12/2/16 Lemonade $33Operator of a peer-to-peer insurance company. The company provides technology-driven insurance services,
utilizing machine learning and bots to provide clients with a range of insurance products.
Aleph, General Catalyst Partners, GV, Sequoia Capital Israel, Thrive Capital, Tusk Ventures, XL
Innovate
11/30/16 TraceLink $52Provider of cloud computing, social media and supply network process software. The company offers TraceLink
Network, which enables companies to connect, integrate and collaborate with their supply chain partners.FirstMark Capital, F-Prime Capital Partners, The Goldman Sachs Group, Volition Capital
11/30/16 SendGrid $33Provider of an email delivery platform for customer communication. The company offers a cloud-based customer
communication platform for various fields such as email deliverability, scalability and metrics.Bain Capital Ventures, Bessemer Venture Partners, Foundry Group, SoftTech VC
11/30/16 Opendoor $210
Operator of a technology-enabled residential real estate company. The company provides a platform enabling users
to sell and purchase their homes online. The company has developed a proprietary valuation tool enabling it to
make offers to home sellers within hours, provided the properties fall within a range of criteria.
Access Industries, Caffeinated Capital, Felicis Ventures, Fifth Wall Ventures Management,
GGV Capital, Khosla Ventures, Lakestar, NEA, Norwest Venture Partners, SVB Capital
11/30/16 Clue $20Developer of a mobile application for tracking female health. The company enables women users to track their
monthly cycle by entering data on various segments.Fabrice Grinda, Mosaic Ventures, Nokia Growth Partners, Union Square Ventures
Notes: Source: Pitchbook. Reflects deal activity through 01/20/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.
23
SOFTWARE CAPITAL MARKETS UPDATE Recent Software IPO Pricings
Notes:
Source: Capital IQ and Dealogic.
Market Data as of 01/20/2017.
(1) First Trading Day listed as Offer Date.
($ MM)
Offer Date (1) Market Cap @
IPO Date
Amount
Raised Original Filing Range Offer Price
% Change
Offer /
Midpoint Price
% Change
1st Trading Day /
Offer Price
% Change Current
/ Offer Price
28-Oct-16 $1,169 $146 13.00 - 15.00 $17.00 21.4% 40.5% 66.5%
6-Oct-16 $1,601 $133 14.00 - 16.00 $18.00 20.0% 84.9% 39.5%
30-Sep-16 $5,079 $238 11.00 - 13.00 $16.00 33.3% 131.3% 77.2%
23-Sep-16 $841 $96 13.00 - 15.00 $16.00 14.3% 40.9% 2.8%
22-Sep-16 $453 $87 10.50 - 12.50 $13.00 13.0% 21.2% (9.6%)
16-Sep-16 $411 $90 11.00 - 13.00 $12.00 0.0% 27.1% 54.8%
Name
24
IPO PIPELINE Software IPOs in Public Registration
Notes: Source: Pitchbook and SEC.gov. Offering amounts $10MM or greater. (1) LTM as of 10/31/2016. (2) On 01/24/2017 Cisco announced its intent to acquire AppDynamics for approximately $3.7Bn in cash and assumed equity awards. (3) LTM as of 9/30/2016. (4) Figures represent 9 months ended 9/30/2016. (5) On 12/06/2016, KKR announced that it would acquire a majority stake in Optiv Security.
($MM)
Primary Initial Initial Offering LTM
Issuer Industry Filing Date Amount Description Revenue EBITDA
Internet and
Software Services12/28/16 $100
Provides an integrated suite of software application and
IT infrastructure monitoring and analytics products$206 ($105)
Other IT Services
Communication
Software
11/22/16 $100 Provider of professional and managed services for
advanced IT solutions$2,761 $210
Systems and
Information
Management
11/18/16 $100 Provider of information security and compliance
management services to enterprise clients$644 $61
(3)
(4)(5)
(1)(2)
25
195
161
(5)
(4)
(6)(9) (6)
(7)
(8)
(9)
(7)
(11)
(8)(11)
(9)
(6)
(10)
(12)
6
11
717
1617
11
9
150
160
170
180
190
200
210 PE Acquisitions Strategic Acquisitions IPO
Strategic and Private Equity Exits Outweigh New Issues
A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIES
Notes: Sources: Capital IQ, company filings. Market Data as of 01/20/2017.
2008 2009 2010 2011 2015 2012 2013 2014 2016
Fortinet CDC Software
LogMeIn Medidata
SolarWinds Rosetta Stone SciQuest
RealPage IntraLinks Envestnet
Qlik BroadSoft
Higher One Convio
SPS Commerce SS&C
QuinStreet
Jive Imperva
Carbonite Tangoe
Responsys Cornerstone
Epocrates
Workday Fleetmatics
Qualys Eloqua E2open
ServiceNow Exa
Incadea Infloblox
Proofpoint Splunk
ExactTarget Demandware Bazaarvoice Greenway
AVG Guidewire
Mavenir Barracuda Wix.com Covisint
RingCentral FireEye Cvent
Gigamon Textura
ChannelAdvisor Marketo Tableau Halogen
Rally Marin
Model N
Workiva Hortonworks
New Relic HubSpot CyberArk
MobileIron Kinaxis
Zendesk Paycom
OPOWER Five9
2U Borderfree
Amber Road A10 Networks
Paylocity Varonis Systems
Atlassian Mimecast
Instructure Rapid7 Sophos
AppFolio Alarm.Com
Xactly Shopify Apigee
Box
Twilio SecureWorks
Talend Everbridge
Apptio Gridsum Holding
Nutanix Coupa
BlackLine, Inc.
2009 2010 2011 2012 2013 2014 2015 2016
PE 5 4 6 9 6 7 8 9
Strategic 7 11 8 11 9 6 10 12
IPO 6 11 7 17 16 17 11 9
26
VENTURE CAPITAL INDUSTRY TMT Transactions Since Q3 2001
Notes: (1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of: Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and
Equipment, Semiconductors, Software and Telecommunications.
(1)
0
200
400
600
800
1,000
$0
$2
$4
$6
$8
$10
$12
Q3 2001 Q3 2002 Q3 2003 Q3 2004 Q3 2005 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016
Nu
mb
er o
f In
vest
men
ts
$B
n
Quarter - Year
Number of Deals Investment Amount(1)
27
GCA OVERVIEW Deep Software Sector Expertise
Acquired by
We Advised the Seller
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
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We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
Fairness Opinion to Buddy Media
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by Acquired by
We Advised the Seller
Acquired by
We Advised the Seller We Advised the Seller
Acquired by
We Advised the Buyer
Acquisition of
We Advised the Seller
Acquired by
We Advised the Buyer
Acquisition of Strategic Advisory Services
Financial Advisor
We Advised the Seller
Acquired by Acquired by
Acquired by
We Advised the Seller
Acquisition of
We Advised the Buyer
We Advised the Seller
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Preferred Stock
Financial Advisor
Acquisition of
We Advised the Buyer We Advised the Seller
Investment by
We Advised the Seller
Acquired by Preferred Stock
Financial Advisor
Acquired by
We Advised the Seller
Acquired by
We Advised the Seller
Financial Advisor
Preferred Stock
Notes: The above transactions represents a compilation of past and current deals that GCA entities have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction.
Convertible Note Offering
Financial Advisor
28
GCA OVERVIEW Software Team
New York
640 Fifth Avenue, 10th
Fl. New York, NY 10019
United States Phone: (212) 999-7090
Tokyo
11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230
Japan Phone: +81 (3) 6212-7100
San Francisco
One Maritime Plaza, 25th Fl. San Francisco, CA 94111
United States Phone: (415) 318-3600
*Adrian Reed is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Sascha Pfeiffer is a Managing Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Raiko Stelten is a Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Akikazu Ida is a Managing Director at GCA Corporation.
London
1 Southampton St. London WC2R0LR United Kingdom
Phone:+44 20 7484 4040
Frankfurt
Thurn-und-Taxis-Platz 6 60313 Frankfurt
Germany Phone: +49 69 204 34 6410
Todd Carter Clark Callander Seihun Kong Paul DiNardo Sascha Pfeiffer* Akikazu Ida*Co-President and CEO Co-Head of Investment Banking Managing Director Managing Director Managing Director Managing Director
Phone: (415) 318-3610 Phone: (415) 318-3680 Phone: (415) 318-3682 Phone: (212) 999-7097 Phone: +49 (69) 204-34-6410 Phone: +81 (3) 6212-7241
Mobile: (415) 314-9898 Mobile: (415) 515-2468 Mobile: (415) 823-7300 Mobile: (650) 483-7246 Mobile: +49 (0) 177-74-15643 Mobile: +81 (80)
[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]
Adrian Reed* James Orozco Chris Gough Dan Etchevers Raiko Stelten* Gautam GargManaging Director Managing Director Managing Director Director Director Vice President
Phone: +44 845 505 4314 Phone: (415) 318-3667 Phone: (415) 318-3658 Phone: (415) 318-3644 Phone: +49 (69) 204 34 6418 Phone: (415) 318-3692
Mobile: +44 7887 626 800 Mobile: (415) 722-0922 Mobile: (415) 385-9427 Mobile: (415) 572-3549 Mobile: +49 171 335 0879 Mobile: (650) 504-1722
[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]