tech-enabled services monthly april 2016
TRANSCRIPT
Tech-Enabled Services Headline Transactions
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
LTM Gross & EBITDA Margins
10.2x
12.2x
7.4x
9.0x
16.2x
14.0x
7.0x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
18.0x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
Info Services VAR
29.6%
33.0%
53.6%
18.8%
38.2%
60.5%
9.0% 11.2%
17.9%
34.5%
3.9%
23.0% 26.2%
3.4% 0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
Info Services VAR
Note: EBITDA Margins in red
Target Acquirer Acquisition Synopsis
IT Services
•
•
Bluewolf, backed by Riordan, Lewis & Haden, is one of Salesforce's longest standing consulting partners, providing design and build services to create custom user experiencesIBM acquired Bluewolf to augment the existing Interactive Experience (IX) practice of IBM Global Services and add Bluewolf's cloud consulting and implementation capabilities to its service offering
IT Services
•
•
netAura provides engineering, development and consulting services for managed security technologies, serving both the U.S. government and corporate marketsCenturyLink acquired netAura to enhance its recently launched Managed Security Suite, which is designed to help organizations better detect, prevent and respond to sophisticated cyberattacks
Managed Services
•
•
Dell's Perot Systems provides IT consulting services to a wide range of industries, but is especially strong in healthcare, providing services such as medical record digitization and process automationDell has agreed to sell Perot Systems to Japan-based technology firm NTT Data for $3.05 billion in order to pay down debt associated with the technology giant's pending acquisition of EMC
IT Services
•
•
Meridian Imaging Solutions provides managed IT services and content management solutions that drive improved efficiency and workflow for its clients' business operationsKonica acquired Meridian (its twenty-first acquisition in the past four years), to strengthen its position as a complete workplace solutions provider and expand its footprint in the DC area
IT Services
•
•
BITI provides business technology related services, such as cybersecurity, big data analytics, risk assessment and change management servicesPwC acquired BITI to compliment its existing information systems development planning / implementation and risk management offering, as well as strengthen its footprint in the Baltics
1. Headline Transactions
1.1x
2.4x
1.9x
0.3x
3.2x
2.8x
0.2x
0.0
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
Info Services VAR
1.3%
8.0%
1.8%
(2.4%)
5.3% 5.7%
(2.7%) (4%)
(2%)
0%
2%
4%
6%
8%
10%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
Info Services VAR
Tech-Enabled Services MonthlyApril 2016
LTM Revenue Growth
Selected TM Capital Tech-Enabled Services Experience TM Capital’s Tech-Enabled Services Contacts
Bradford A. Adams Managing Director
617-259-2203 [email protected]
Jarrad S. Zalkin Managing Director
617-259-2207 [email protected]
Andrew O. Redmond Vice President 617-259-2215
Annc. Date Sector Acquirer Target DescriptionEnterprise
Value Comments03/24/16 IT Services GFI Informatique
S.A.IMPAQ Holding AG
Software publisher, IT services consultancy andprovider of solutions for financial sector clientswith anti-money laundering and frauddetection services
NA GFI Informatique acquired IMPAQ to broaden itsproduct offering, diversify its delivery method (throughIMPAQ's SaaS model) and extend its reach into EasternEuropean markets
03/24/16 IT Services Sirius Computer Solutions, Inc.
Force 3, Inc. Offers consulting services and solutionsaround network security; viewed by manymanufacturers as one of the most skilledFederal partners in the space
NA Force 3 will compliment Sirius' existing networksecurity platform through its strong engineering skills,diverse base of Federal clients and establishedfootprint in the Mid-Atlantic market
03/03/16 IT Services MarkIT Holding AS
ePartner as Provides B2B IT e-commerce platform, with adominant position serving Norway's leadingcompanies
NA MarkIT's 51% majority acquisition of ePartner willcreate a best-in-class purchasing portal, combiningePartner's expertise in IT purchasing systems withMarkIT's global reach
03/17/16 IT Services CSC Dalmatian Group Pty Ltd.
Offers information and cybersecurityconsultancy services, focusing largely on theAustralia and New Zealand markets
NA CSC, Australia's largest IT services provider, acquiredDalmatian Group to bolster its cybersecurity servicesoffering, which is experiencing growing demand
03/14/16 IT Services Tetra Tech, Inc. INDUS Corporation
IT solutions firm offering data analytics,geospatial analysis, secure infrastructure, cloudprovisioning and mobility services for U.S.federal government customers
NA Leveraging INDUS' expertise in informationmanagement and data analysis, Tetra Tech will be ableto better assist customers in making data-drivendecisions
03/13/16 VAR Arrow Electronics, Inc.
Distribution Central Pty Limited
Provides specialized, technical-orienteddistribution and channel support to clientspredominately in Australia, New Zealand andSingapore
$48.6 Arrow Electronics acquired Distribution Central tostrengthen its presence in the value-added distributionmarketplace and gain scale in order to better competewith larger players
03/03/16 IT Services Madison Dearborn Partners, LLC
Ankura Consulting Group, LLC
Provides governance, risk compliance andrestructuring services
$100.0 Ankura announced a strategic growth commitment of$100 million from Madison Dearborn Partners, whichwill be used to accelerate expansion in high-valuesectors through organic and inorganic growth
3. TES Transactions
Select Tech-Enabled Services Transactions Announced in March 2016
www.tmcapital.com /technology
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02145Tel: 617.259.2200
Atlanta3575 Piedmont Road NESuite 1010Atlanta, GA 30305 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
10.2x
12.2x
9.0x
7.4x
16.2x
14.0x
7.0x3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
17.0x
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
TEV
/ EBI
TDA
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
Notes: USD in millions Source: Capital IQ, Company SEC Filings, industry research and TM Capital estimates