tech-enabled services monthly may 2014 in review · 2020-01-01 · dataweave pty ltd. the...
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Tech-Enabled Services MonthlyMay 2014 in Review
Tech-Enabled Services Headline Transactions
TEV / Revenue TEV / EBITDA
LTM Gross & EBITDA Margins1-Year Revenue Growth
0.8x
2.1x 2.4x
0.4x
3.0x 3.1x
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
InfoServices
VAR
TEV
/ Rev
enue
9.0x 10.4x
7.4x
9.1x
12.2x 12.5x
7.4x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ EBI
TDA
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
1.8%
12.9%
8.9%
5.2%
8.1%
4.5%
7.3%
0%
2%
4%
6%
8%
10%
12%
14%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
1-Ye
ar R
even
ue G
row
th
29.1%
36.3%
52.9%
20.1%
37.7%
60.3%
8.9% 10.8%
19.7%
34.2%
4.8%
22.0% 25.7%
2.8%
0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
ITS OffshoreITS
HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
LTM EBITD
A M
argin LTM
Gro
ss M
argi
n
Note: EBITDA Margins in red
Target Acquirer Acquisition Synopsis
ITS
•
•
TM Capital served as the exclusive financial advisor to Xpanxion, LLC in its sale to UST Global, Inc. a leading provider of IT services and solutions for the Global 1000 companiesThis acquisition enhances UST Global’s software engineering, QA and testing capabilities while significantly expanding its presence in the US-based rural sourcing segment of the larger ITO industry
Mgd
. Svs
.
•
•
Atos (ENXTPA:ATO) acquired Bull (ENXTPA:BULL), a provider of technological systems and services for secured network infrastructures, for $844 million (0.3x TEV/LTM Revenue and 5.5x TEV/LTM EBITDA)Acquisition of Bull will enhance Atos' cloud computing capabilities and support growth in key industry segments
Mgd
. Svs
. •
•
Telkom (JSE:TKG) acquired Business Connexion (JSE:BCX), a provider of Information and Communications Technology products and services for $293.4 million (0.5x TEV/LTM Revenue and 3.9x TEV/LTM EBITDA)Business Connexion will further boost Telkom's cloud-based services as the Company faces increased encroachment from competitors in the telecom industry
Mgd
. Svs
. •
•
Accenture plc (NYSE:ACN) announced the acquisition of Enkitec, an IT services and consulting company that specializes in ORCL technologiesThis acquisition is part of Accenture’s strategy to strengthen its Oracle Engineered Systems client services business
ITS
••
Applause agreed to acquire TestHub, provider of crowd-based app testing services in Europe This acquisition expands Applause's geographic reach to Europe and provides an impressive client roster as the Company looks ahead to an IPO
1. Headline Transactions
Select 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
Select Tech-Enabled Services Precedent M3. TES Transactions Transactions
6/26/2014
Annc. Date Sector Acquirer Target Target Description
Enterprise Value Comments
05/27/14 Managed Services
Dataweave Pty Ltd.
The Portcullis Group Pty Ltd.
Provides Oracle related solutions andservices, including installs and upgrades,consultancy, system support, and bespokedevelopment services.
NA Acquisition of Portcullis provides Dataweave a deepbench of technical consultants, software technologiesand clients.
05/14/14 Managed Services
Clearlake Capital Group, LLC
ConvergeOne, LLC
Provider of business telephone and Internet,data recovery and storage and otherinformation technology services.
NA Clearlake acquired ConvergeOne to help theCompany further differentiate its managed servicescapabilities and technology solutions.
05/12/14 Hosting Services
GI Partners Peak 10 Holding Corporation
Provider of managed information technologyinfrastructure and data center services.
NA Leading middle market PE firm, GI Partners, acquiredPeak 10 to add to its portfolio of infrastructureinvestments including Digital Realty Trust, The TelxGroup and Softlayer Technologies.
05/08/14 IT Services Perficient Inc. Trifecta Technologies, Inc.
Offers Salesforce implementation,development, integration, and support andsustainment solutions and business solutionsconsulting services.
$13.7 Perficient acquired the IBM Smarter Commercedivision of Trifecta Technologies to expand theCompany's IBM commerce capabilities. Additionally,Trifecta provides an impressive roster of clients.
05/05/14 IT Services KPMG LLP Trecata Corporation
Provides implementation, upgrade, andmaintenance services for Oracle’s E-Businesssuite of solutions.
NA Acquisition of Trecata provides KPMG technicalexpertise and specialized Oracle EBS solutions. Theacquisition also expands Trecata's geographic reachthroughout Canada.
05/01/14 IT Services Microsoft Corporation
InterGrid Ltd. Provider of cloud services for compute-intensive applications.
NA Microsoft acquired InterGrid to enhance Azure, itscloud computing platform and infrastructure.Microsoft has worked with InterGrid extensively inthe past.
05/01/14 IT Services Signature Business Systems, Inc.
CriticalEdge Group, Inc.
Engages in consulting, supporting, servicing,report writing, and developing for MicrosoftDynamics GP (Great Plains).
NA Acquisition of CriticalEdge expands SignatureBusiness Systems' geographic reach and strengthensits Microsoft Dynamics capabilities.
Select Tech-Enabled Services Transactions Announced in May 2014
www.tmcapital.com
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston200 Clarendon Street25th FloorBoston, MA 02116Tel: 617.259.2200
Atlanta15 Piedmont Center NE Suite 1010Atlanta, GA 30305 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
9.0x
10.4x
7.4x
9.1x
12.2x 12.5x
7.4x 3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Apr '14
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