Forecast 2017: Tech M&A Monthly

Corum Group
Corum GroupCorum Group
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Forecast 2017:
Global Tech M&A
January 19, 2017
Join the conversation!
@CorumGroup
#FORECAST2017
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A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical
market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the
world.
He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding
investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to
two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the
nation’s most active regional technology trade association.
He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most
influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100
Awards given to Europe’s top technology firms
A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for
success, including Power Planning. He is a frequent lecturer and author.
Welcome
Bruce Milne
CEO
Corum Group Ltd.
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Agenda
Welcome
Tech M&A Market Drivers
2017 Predictions
Top 10 Disruptive Tech Trends
Clouds on the Horizon?
Annual Research Report
Luminary Panel
Q&A
Peter Coffee – Salesforce
Dr. Karl Popp – SAP
Reese Jones – Singularity University
Henry Hu – IBM
4
2017 Six Tech M&A Market Drivers
1. Record cash – strategic & financial buyers
2. Strategic imperative – disruptive trends
3. Record financial markets
4. More buyers – broader deal interest
5. Inexpensive debt (PE buyouts)
6. Repatriation of US tech funds ($1 Trillion)
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Timothy joined Corum in 2011, and oversees the company’s marketing efforts globally from the headquarters near
Seattle. Chief among these is Corum's extensive conference schedule, “Selling Up, Selling Out,” the Merge Briefing,
the Tech M&A Monthly webcast and Corum's platinum sponsorship of the World Financial Symposiums' live events
and Market Spotlight series. Through these events, Corum Group serves as the world’s leading educator in
technology mergers and acquisitions.
Prior to joining Corum, Timothy served as marketing and product manager for GIS software startup Depiction, Inc.,
and previously worked in marketing for VizX Labs, a pioneering SaaS startup delivering DNA analysis tools. In
addition to marketing for software startups, Tim has worked for a US Senate campaign and taught science in Rio de
Janeiro.
Timothy graduated Magna Cum Laude from Bethel University in St. Paul, Minnesota, with degrees in History and
Biology.
2017 Predictions & 2016 Scorecard
Timothy Goddard
SVP, Marketing
Corum Group Ltd.
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Corum 2016 Prediction Scorecard
0
Food ordering & delivery apps integrated into gaming & social media.
0
Apple makes a major acquisition in the IoT or Enterprise space.
0
Booming Indian product M&A doubles, including at least one megadeal.
6
Private Equity acquires an underperforming public Internet company such as
Groupon, RetailMeNot or Yahoo.
7
Consumer traction in entry-level VR driven by immersive sports and viral
videos—not games.
10
Drone software M&A takes off, with image processing and analytics at the
forefront.
10
Asian Internet giants acquire strategic European travel sites and services.
10
Vehicles, not houses or cities, become the central hub of the IoT—driving a
global M&A wave with multiple megadeals.
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2017 Predictions
 Amazon will make an unusual acquisition.
 GE will extend its shopping spree, breaking
into the top three tech company acquirers.
 More blockchain-related acquisitions by
fintech and traditional finance firms.
 Repatriation leads to multiple acquisitions of
US “unicorn” tech firms.
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2017 Predictions
 Sovereign funds will cut out the middleman
stepping into a more direct role in tech M&A.
 Major AI players will make notable
acquisitions in data security.
 Industrial sector follows GE & Siemens into
tech M&A including IoT, SCM & related deals.
 More major tech firms make a move into the
connected car space.
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Corum Top Ten Technology Trends 2017
AI Enablement IoT
Software
Visual
Intelligence
Systems
Digital Currency
Flow
Data Science
Monetization
Online
Exchanges
Omni-channel
Sales
Connected
Health
Focused IT
Services
Data
Security
CORECONTOUR
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Allan Wilson
Vice President
Corum Group Ltd.
Allan has over 30 years of executive and entrepreneurial experience and has built
and sold several software companies in sectors including, manufacturing, supply
chain, big data, predictive analytics and social networks. He has deep
understanding of Aerospace, Automotive, High Tech, Healthcare, Consumer
Products and Military Contracting operating models.
Allan has extensive international experience and lived in Germany for a time
working for SAP, following the sale of his company to them in 2009.
Putting AI to work by means of big data and feedback
#1: AI Enablement
Corum Top Ten Disruptive Technology Trends 2017
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Putting AI to work by means of big data and feedback
#1: AI Enablement
 Nascent AIs and other
machine learning platforms
need data.
 Need tasks that provide
data, benefit from improving
expertise, then provide
feedback to improve the
platform.
 Business cases emerging
rapidly across all sectors.
 Significant stores of unique
data can short-circuit “build
vs. buy” debates in M&A.
Corum Top Ten Disruptive Technology Trends 2017
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Rob Schram
Senior Vice President
Corum Group Ltd.
Rob has over 30 years of executive and entrepreneurial experience in multiple
technologies: Integrated circuit testing, industrial process automation and control,
communications software, security software, and energy software and services.
Rob has founded and sold several companies and engaged in two IPOs. He was most
recently CEO of Evergreen Fuel Technologies, Inc. in the energy sector. Rob is a broadly
skilled strategic development professional with a proven reputation for targeting,
negotiating and developing profitable ventures and a demonstrated ability to successfully
analyze an organization's critical business requirements, identify deficiencies and
opportunities, and develop innovative and cost-effective solutions for enhancing
competitiveness, increasing revenues, and improving customer relationships.
Emerging platforms, standards & analytics
#2: IoT Software
Corum Top Ten Disruptive Technology Trends 2017
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Emerging platforms, standards & analytics
#2: IoT Software
 Internet of Things (IoT)
growth brings us into its first
full software cycle.
 Each “Thing” needs
platforms, communication,
analytics, etc.
 Competing platforms and
associated ecosystems
beginning to coalesce.
 IoT software often, but not
always, inextricably
enmeshed with hardware.
 Compatibility-driven, as in
other cycles of disruption.
Corum Top Ten Disruptive Technology Trends 2017
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Daniel Bernstein
Vice President
Corum Group Ltd.
Daniel Bernstein has worked in a number of roles over a twenty year career in high
technology, most recently as the founder and CEO of Sandlot Games Corporation, a
leading casual games publisher and developer. Having sold Sandlot Games to Digital
Chocolate in 2011, Daniel started a small games studio and a consulting practice where
he advises larger companies such as RealNetworks and smaller high growth businesses
on product development, strategic initiatives, and M&A opportunities.
Prior to Sandlot Games, Daniel Bernstein held director level positions in companies such
as Wild Tangent and Monolith. An accomplished composer, Daniel also writes music for
most of the games he works on.
Daniel holds a BS in Computer Science and an MA in Music Composition from the
University of Virginia.
Intersection of AI, computer vision & analytics
#3: Visual Intelligence Systems
Corum Top Ten Disruptive Technology Trends 2017
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Intersection of AI, computer vision & analytics
#3: Visual Intelligence Systems
Corum Top Ten Disruptive Technology Trends 2017
 Evolution of Positioning
Intelligence beyond GPS
required computer vision.
 Drones and self-driving cars
driving advanced vision tech
with even larger implications.
 Retail, security, energy,
agriculture, advertising are all
being impacted.
 Companies creating practical
solutions with this tech—
especially utilizing analytics—
are in high demand.
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Rob Griggs
Vice President
Corum Group Ltd.
As a serial entrepreneur and investment banker, Rob Griggs has had a successful 35+
year career in the high technology arena. Early in his career he was a top performer at
Apple before starting his first software company in the mid-1980’s. As a founder of
Authorware / MacroMedia, NetRadio, Wit Capital, and many other companies, Rob’s
sales, marketing, business development and capital raising skills have been honed over
supporting hundreds of company financial transactions during his career.
His success and extensive experience in software M&A uniquely qualify him as an expert
in building value and realizing wealth. Rob joined Corum Group, the world’s leading
software M&A firm, with a specific focus on educating and helping prospective sellers
maximize the value of their technology companies.
Decreasing friction in payments & exchange
#4: Digital Currency Flow
Corum Top Ten Disruptive Technology Trends 2017
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Decreasing friction in payments & exchange
#4: Digital Currency Flow
 Currency flow moving towards
fewer barriers, reduced regulation
and less friction on transactions
globally.
 Banks face competition from
nimbler mobile and web point
solutions.
 Includes alternative currencies—
from blockchain/bitcoin to in-
game currencies to Starbucks
payments.
 Software & systems that speed or
harness payment flow have
significant potential.
Corum Top Ten Disruptive Technology Trends 2017
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Entertainment software entrepreneur Jim Perkins is directly responsible for publishing
some of the industry’s biggest franchises, including Unreal, Duke Nukem, Wolfenstein,
Doom, Hunting Unlimited, and Driver. A well-known senior executive with a 22-year
track record of publishing such bestselling hits, he founded and grew two highly
successful software publishing companies (FormGen and ARUSH) from start-ups to
multi-million dollar enterprises.
Jim also launched Radar Group, the first Transmedia Incubation Company to monetize
entertainment franchises across all media, including film and television. His success
and extensive experience in software production, marketing and public relations,
packaging, online and retail distribution and software M&A, uniquely qualify him as an
expert in building value and realizing wealth. Jim joined Corum Group, the world’s
leading software M&A firm, with a specific focus on educating and helping prospective
sellers maximize the value of their digital media companies.
Jim Perkins
Executive Vice President
Corum Group, Ltd.
Maximizing return with real-time analytics
#5: Data Science Monetization
Corum Top Ten Disruptive Technology Trends 2017
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Maximizing return with real-time analytics
#5: Data Science Monetization
 In a world of freemium, free-to-
play & declining ad effectiveness,
turning users or viewers into
dollars is a premium capability.
 Robust analytic tools are no
longer optional, especially for
consumer-facing companies.
 Gaming companies are leading
the way, deriving value from their
analytic capabilities as much as
entertainment.
 Video ads are close behind with
opportunities in e-commerce,
brick & mortar, B2B and beyond.
Corum Top Ten Disruptive Technology Trends 2017
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Ivan Ruzic, Ph.D.
Vice President
Corum Group Ltd.
Dr. Ivan Ruzic has had a successful 30+ year career in the software business that has
included virtually every senior executive role. His resume spans marquee companies
such as BEA systems, Novell and Borland as well as multiple startups including his
own. His international experience is extensive and in addition to the United States has
been involved in mergers and acquisitions in Europe, Africa and Asia.
His success and extensive experience qualify him as an expert in building value and
realizing wealth. Ivan joined Corum Group, the world’s leading software M&A firm, with
a specific focus on educating and helping prospective sellers maximize the value of
their technology companies.
Connecting Creators & Consumers
#6: Online Exchanges
Corum Top Ten Disruptive Technology Trends 2017
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Connecting creators & consumers
#6: Online Exchanges
 Uber & others recharging the
concept that created online
commerce, putting unused
capacity to work.
 Not just connecting buyers &
sellers, but creating previously
non-existent opportunities on
both sides.
 Disruptive opportunities
include:
 Personalization
 Real-time commerce
 Financial disintermediation
Corum Top Ten Disruptive Technology Trends 2017
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Peter Prince
Vice President
Corum Group Ltd.
Peter Prince has spent the last 27 years involved in starting and growing software
companies or large divisions of international software companies. As well as
following his entrepreneurial spirit he has held a number of senior roles for both
privately held and public companies. He was part of several key acquisitions such
as Software Artistry to IBM, Infinium to SSA GT and SSA Global to Golden Gate
(Infor). He was President of SSA Global EMEA prior to its sale and then CEO of
Cogniti.
Peter has a diverse background within the software industry spanning Operations,
Sales, Mergers and Acquisitions and Integration. He’s been retained by some of
the largest Private Equity firms in an advisory capacity.
Peter has also focused on investing both time and funding into start-up and young
companies over the recent years in a diverse range of sectors.
He attended Chiltern University attaining a business degree and later attended
Harvard Business School successfully completing an executive course, Launching
New Ventures.
Purchasing decisions anywhere, any platform
#7: Omni-Channel Sales
Corum Top Ten Disruptive Technology Trends 2017
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Purchasing decisions anywhere, any platform
#7: Omni-Channel Sales
 Consumer platforms & devices
continually fragmenting.
 Marketing keeping pace – next
challenge is sales, both decision
points and actual purchase.
 Point at which money changes to
product must be immediately with
customer, moving closer by being
on their favorite device.
 Persuasion must move there as
well, taking new forms as it does.
 Consumer brands leading the
way, but enterprise is not far off.
Corum Top Ten Disruptive Technology Trends 2017
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David Levine
Vice President
Corum Group Ltd.
Dave joined Corum in 2015 and has a diverse background in technology and life
sciences. As an executive and entrepreneur, Dave has been operating and investing
in companies sitting at the convergence of commerce and eCommerce as well as
innovative life science businesses for over twenty-five years. Recently, Dave was
CEO North America for Gaxsys, an eCommerce and logistics company that is a
leader in last mile logistics and fulfillment for eCommerce marketplaces.
Dave has been on both sides of the mergers and acquisitions table having sold a life
science technology company, facilitated sell side and buy side technology transactions
and has also scaled multiple technology companies globally in the eCommerce, life
sciences and innovation intelligence markets. Dave sits on boards of public and
private companies including one company that recently filed for an IPO.
Dave holds a business degree from the Indiana University, Kelley School of Business.
Linking people to their health data & services
#8: Connected Health
Corum Top Ten Disruptive Technology Trends 2017
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Linking people to their health data & services
#8: Connected Health
 Technological, regulatory
and demographic changes
converging to create
significant opportunity.
 Leveraging new tech:
smartphones, trackers,
connected medical devices,
genomics, remote
monitoring.
 Improved self-care and
remote care/diagnosis.
 Makes healthcare more
patient-centric by enabling
healthcare consumerism.
Corum Top Ten Disruptive Technology Trends 2017
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Steve joined Corum after 25 years of executive experience in various high-tech
industries with both public and private venture-backed startups. He has extensive
global experience, opening international markets and growing sales from zero to
tens of million in revenue. He has been on the forefront of selling several companies
and spinning off software divisions, highlighted by the sale of GetFon to Alestra
(AT&T Mexico). He is fluent in Spanish.
Steve was the founding CEO of Solera Networks, a real-time intrusion detection
security company. He also co-founded Auction Trust Network, an eCommerce
company for online exchanges; which he sold to MediaForge (Rakuten Marketing).
Steve is a board member of several software companies and has industry expertise
in several areas: enterprise apps and infrastructure, security, mobile and wireless,
media & entertainment, supply chain, and embedded devices/systems (IoT).
Steve Jones
Vice President
Corum Group Ltd.
Differentiation drives new value in a sleepy sector
#9: Focused IT Services
Corum Top Ten Disruptive Technology Trends 2017
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Differentiation drives new value in a sleepy sector
#9: Focused IT Services
 New and more pervasive
technologies creating new
needs for maintenance,
extension and utilization.
 Teams that provide customer
value around a specific
technology, sector or problem
are seeing increased value.
 Buyers seeing more value in
purpose-built IP emerging out
of services firms.
 Services on the edge of key
trends seeing particular
interest.
Corum Top Ten Disruptive Technology Trends 2017
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Jon joined Corum in 2010 out of their Seattle headquarters and is now based in
Amsterdam. He has close to 30 years experience serving high technology companies
with the last 20 mainly in chief operating and chief executive roles. During this time Jon
has become known for his ability to successfully integrate strategies and tactics into well
executed operating plans, building strong teams and achieving excellent results.
Jon has served as President and CEO of The PowerTech Group, a security and
compliance software company sold to Help/Systems in 2008, and Microserv Technology
Services, a nationwide tech services company which was acquired by Halifax Corporation
in 2003. Earlier he served as President and COO of Traveling Software, a leading
developer of communications software in Seattle. Prior to his operating roles Jon held
vice president roles in sales, marketing and business development for technology
companies.
Jon has taught in the software product management program at the University of
Washington and holds a business administration degree from San Francisco State
University.
Jon Scott
Managing Director
Corum Group
International
Building barriers in an age of blurred lines
#10: Data Security
Corum Top Ten Disruptive Technology Trends 2017
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Building barriers in an age of blurred lines
#10: Data Security
 New technologies creating
new risks from freer flowing
data.
 High impact breaches (DNC,
Yahoo, Dyn DNS, Oracle
Micros) drive broad
recognition of security needs.
 Key trends include security
analytics, rapid detection &
in-process threat response.
 Internet of Things opening a
new front in this fight – the
Dyn DDoS attach came from
infected IoT devices.
Corum Top Ten Disruptive Technology Trends 2017
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1. Geopolitical Disruption
2. Currency Crisis
3. China – Capital Outflow Restrictions
4. Inflation/Rising Interest Rates
5. Stock Market Adjustment
6. M&A Cycle Ends
6 Global M&A Concerns
31
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Yasmin Khodamoradi
Analyst
Amanda Tallman
Senior Analyst
Thomas Wright
Analyst
32
Public Markets
-20%
-15%
-10%
-5%
0%
5%
10%
15% Weekly Percentage Change
NASDAQ S&P TECH Dow Jones
33
The Bull Market, 2009-Present
0%
50%
100%
150%
200%
250%
300%
350% Daily Percentage Change
NASDAQ S&P TECH Dow Jones
2016
34
Corum Index
Market
Transactions
20162015
4307 3948
Mega Deals
59 76
Largest Deal $63B $39B
Pipeline
2015 2016
Private Equity Deals
232 323
VC Backed Exits
658648
Attributes
20162015
34%
Cross Border
Transactions 35%
Start-Up
Acquisitions 12%13%
15 yrs14 yrs
Average Life
of Target
39%
29%
8%
38%
2%
35
Corum Index
Market
Transactions
20162015
4307 3948
Mega Deals
59 76
Largest Deal $63B $39B
Pipeline
2015 2016
Private Equity Deals
232 323
VC Backed Exits
658648
Attributes
20162015
34%
Cross Border
Transactions 35%
Start-Up
Acquisitions 12%13%
15 yrs14 yrs
Average Life
of Target
39%
29%
8%
38%
2%
36
Corum Index
Market
Transactions
20162015
4307 3948
Mega Deals
59 76
Largest Deal $63B $39B
Pipeline
2015 2016
Private Equity Deals
232 323
VC Backed Exits
658648
Attributes
20162015
34%
Cross Border
Transactions 35%
Start-Up
Acquisitions 12%13%
15 yrs14 yrs
Average Life
of Target
39%
29%
8%
38%
2%
37
Corum Index
Market
Transactions
20162015
4307 3948
Mega Deals
59 76
Largest Deal $63B $39B
Pipeline
2015 2016
Private Equity Deals
232 323
VC Backed Exits
658648
Attributes
20162015
34%
Cross Border
Transactions 35%
Start-Up
Acquisitions 12%13%
15 yrs14 yrs
Average Life
of Target
39%
29%
8%
38%
2%
38
24
21
20
15
14
13
12 12
11 11
10 10 10 10
Top Strategic Acquirers – 2016
39
J2 Global Acquisitions 2016
Digital MediaBusiness Cloud Services
Security
Other
Email
40
24
21
20
15
14
13
12 12
11 11
10 10 10 10
Top Strategic Acquirers – 2016
41
Buyer Leaderboard Rotation 2015 - 2016
Change 2015 2016
General Electric 0 11
350% Oracle 2 9
200% Verizon 4 12
100% Salesforce 6 12
57% Hexagon AB 7 11
31% Google 16 21
26% J2 Global 19 24
25% Deloitte 8 10
25% Constellation 20 15
36% Cisco 11 7
50% Microsoft 20 10
∞
42
39
21 21
19 19
16 16 15 14 13 13 12 11 11 11
Top Private Equity Acquirers – 2016
43
2016 Technology Megadeals
$1.0B $1.3B $1.5B $1.7B
$3.2B $3.3B
$4.4B
and others
$4.8B $7.0B $26.2B
$1.1B $39.1B
$1.3B $1.6B
$1.4B $1.8B
$2.0B $2.2B
$2.2B $4.0B
$5.5B
$1.5B $8.8BNon-Core Software Assets
$3.9B $32.4B
$1.8B $3.1B
$5.0B
$6.0B
IT Services division $6.0B
$1.5B
$2.6B
$4.3B
$1.5B
$1.8B
$2.4B
$3.3B
$1.1B
$1.5B
$1.7B
$1.4B
$1.4B
$1.6B
$2.8B
$9.3B
$2.1B
$2.5B
$2.8B
$3.0B
$1.8B
$1.5B
$2.7B
$2.0B
$4.4B
$2.3B
$8.6B
$1.1B
$8.8B
$2.7B
$1.0B
$1.1B
$1.2B
$1.1B
$1.7B
$2.2B
$2.4B
$2.6B
$2.7B
$3.2B
$4.0B
$5.9B
$6.9B
$8.0B
$3.6B
$1.0B
$4.7B
44
76 Megadeals of 2016 - $323B Total
INTERNET
10 Deals – $54.4B
INFRASTRUCTURE
17 Deals –
$115.3B
IT SERVICES
9 Deals – $31.8B CONSUMER
6 Deals – $21.5B
HORIZONTAL
15 Deals – $38.7B
VERTICAL
19 Deals – $61.1B
45
2016 Vertical Megadeals
$1.1B
$8.8B
$2.7B
$1.7B
$2.2B
$2.4B
$3.6B
$1.0B
$1.1B
$2.6B
$2.7B
$1.2B
$3.2B
$4.0B
$1.0B
$1.1B $5.9B
$6.9B
$8.0B
Sold to
Target: Fleetmatics [Ireland]
Acquirer: Verizon Communications [USA]
Transaction Value: $2.4B (7.5 EV/S)
- GPS-based vehicle tracking SaaS
46
2016 Infrastructure Megadeals
$1.1B $39.1B
$1.3B $1.6B
$1.4B
$1.8B
$2.0B $2.2B
$2.2B $4.0B
$5.5B$4.7B
$1.5B $8.8BNon-Core Software Assets
$3.9B $32.4B
$1.8B
Sold to
Target: SoftBank Corp. [Japan]
Acquirer: ARM Holdings [United Kingdom]
Transaction Value: $32.4B (20.9x EV/S and 46.2x EBITDA)
- IP for use in IoT connectivity chips for electronics manufacturers
47
2016 Horizontal Megadeals
$2.4B
$3.3B
$1.4B
$1.4B
$2.1B
$2.5B
$1.1B
$1.5B
$1.6B
$2.8B
$2.8B
$3.0B
$1.7B $9.3B$1.8B
Sold to
Target: Deltek [USA]
Acquirer: Roper Technologies [USA]
Transaction Value: $2.8B
- ERP, HR management, CRM and project management software
48
2016 Internet Megadeals
$1.0B $1.3B $1.5B $1.7B $4.4B
and others
$3.2B $3.3B$4.8B $7.0B $26.2B
Sold to
Target: LinkedIn Corporation [USA]
Acquirer: Microsoft Corporation [USA]
Transaction Value: $26.2B (8.2x EV/S and 74x EBITDA)
- Social networking website for professionals and businesses
49
2016 IT Services Megadeals
$3.1B
$5.0B
$6.0B
$6.0B
$1.5B
$2.6B
$1.5B
$1.8B
IT Services division
$4.3B
Sold to
Target: Avnet (Technology Solutions business unit) [USA]
Acquirer: Tech Data Corp. [USA]
Transaction Value: $2.6B (0.3x revenue)
- Avnet's technology solutions business unit
50
2016 Consumer Megadeals
$1.5B
$2.7B
$4.4B
$2.3B
$8.6B
$2.0B
Sold to
Target: China Music Corporation [China]
Acquirer: Tencent [China]
Transaction Value: $2.3B
- Multi-platform music streaming services
51
North America
Sellers 2311
Buyers 2513
Europe
Sellers 1053
Buyers 889
Latin America
Sellers 40
Buyers 15
Mideast/Africa
Sellers 70
Buyers 43
Asia
Sellers 440
Buyers 452
Source: 451 Research
52
2016 North American Deals
West
Sellers 837
Buyers 855
Midwest
Sellers 285
Buyers 322
Canada
Sellers 155
Buyers 161
Northeast
Sellers 548
Buyers 716
Southeast
Sellers 486
Buyers 459
Source: 451 Research
Canada South Korea
New York France
53
2016 Latin American Deals
Latin
America
Sellers 40
Buyers 15
Source: 451
Peru USA
Brazil Israel
54
2016 European Deals
Nordics
Sellers 113
Buyers 131
Western Europe
Sellers 881
Buyers 731
Eastern Europe
Sellers 59
Buyers 27
Source: 451
Czech Republic United States
United StatesFrance
Germany United States
Norway China
55
2016 Asia-Pacific Deals
China
Sellers 52
Buyers 88
Far East
Sellers 41
Buyers 71
SE/Oceania
Sellers 186
Buyers 151
India
Sellers 161
Buyers 142
Source: 451
Australia Canada
USAIndia
Singapore Philippines
China China
56
North America
Sellers 2311
Buyers 2513
Europe
Sellers 1053
Buyers 889
Latin America
Sellers 40
Buyers 15
Mideast/Africa
Sellers 70
Buyers 43
Asia
Sellers 440
Buyers 452
Source: 451 Research
Israel Hungary
57
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
EV/Sales
5.00
10.00
15.00
20.00
25.00
30.00
35.00
EV/EBITDA
3-Year Market Valuation Trends
58
Market Sectors
Horizontal Application
Software
Vertical Application
Software
Consumer Application
Software
Infrastructure
Software
Internet IT Services and BPO
Join the conversation!
@CorumGroup
#FORECAST2017
59
Horizontal Application Software Market
Public Valuation Multiples
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
60
7-year Horizontal EV/S Trends
Human Resources
SCM
ERP
Business Intelligence
CRM
SalesMultiple
1
2
3
4
5
6
7
8
2010 2011 2012 2013 2014 2015 2016
61
Subsector Sales EBITDA Examples
Business
Intelligence
3.40x 14.95x
Marketing &
Ad Tech
1.71x 14.66x
CRM 1.71x 16.30x
ERP 3.47x 20.28x
Human
Resources
6.40x 30.30x
SCM 6.12x 21.98x
Payments 3.88x 15.45x
Other 3.18x 18.39x
Horizontal Application Software Valuations
62
Horizontal Application Software Market
Deal Spotlights: AI Enablement
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
Sold to
Target: Corrigon [Israel]
Acquirer: eBay[USA]
- Image recognition, visual graphic search and Web content monitoring SaaS
Sold to
Target: Expertmaker [Sweden]
Acquirer: eBay [USA]
- Cloud-based AI-enabled search and recommendation engine optimization software
Sold to
Target: MetaMind [USA]
Acquirer: Salesforce [USA]
Transaction value: $32.8M
- AI-enabled automated image recognition SaaS
63
Horizontal Application Software Market
Deal Spotlights: AI Enablement
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
Sold to
Target: Crosswise [Israel]
Acquirer: Oracle [USA]
- Machine-learning based cross-device user identification tracking SaaS
Sold to
Target: Lingospot [USA]
Acquirer: Piksel [USA]
- Online video recommendation engine, analytics and metadata extraction SaaS
Sold to
Sold to
Target: Vibrant Data [USA]
Acquirer: Slice Technologies [Rakuten] [USA]
Transaction Value: $32.8M
- Machine learning-enabled data discovery, analysis and visualization SaaS
Target: Viv Labs [Norway]
Acquirer: Samsung Electronics [South Korea]
- Personal assistant speech-recognition software
64
Horizontal Application Software Market
Deal Spotlights: Predictive Analytics
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
Target: Predictix [USA]
Acquirer: Infor Global Solutions [dba Infor] [USA]
Transaction Value: $125M
- Image search software to enable online purchases
Sold to
Target: Preact [USA]
Acquirer: Spotify [Sweden]
- Big data customer analytics and retention SaaS
Sold to
65
Horizontal Application Software Market
Deal Spotlight: Predictive Analytics
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
Sold to
Target: BeyondCore [USA]
Acquirer: Salesforce [USA]
Transaction Value: $110M (22x EV/S)
- Big data and predictive analytics SaaS
- Injects more AI into Salesforce’s offerings
66
2016 Horizontal Megadeals
$2.4B
$3.3B
$1.4B
$1.4B
$2.1B
$2.5B
$1.1B
$1.5B
$1.6B
$2.8B
$2.8B
$3.0B
$1.7B $9.3B$1.8B
Sold to
Target: Demandware [USA]
Acquirer: Salesforce [USA]
Transaction Value: $2.8B
- Spearheads the Salesforce Commerce Cloud division
67
Horizontal Application Software Market
Deal Spotlight: Visual Intelligence Systems
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
Sold to
Target: Spikenet Technology [France]
Acquirer: BrainChip [USA]
Transaction Value: $1.5M (3.5x EV/S and 12x EBITDA)
- AI-based computer vision software and software development kit
- Enables integration of Brainchip’s SNAP technology into Spikenet’s deep learning
networks
68
Horizontal Application Software Market
Deal Spotlights: SCM
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x
EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
Target: Verian Corporation [USA]
Acquirer: Basware [Finland]
Transaction Value: $36M (3.4x EV/S)
- E-procurement, invoice, processing, EDI and purchasing automation SaaS
Sold to
Target: Appterra [USA]
Acquirer: Descartes Systems Group [Canada]
Transaction Value: $5.8M
- Supply chain relationship management and trading partner collaboration SaaS
Sold to
69
Vertical Application Software Market
Public Valuation Multiples
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
May-
16
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x
EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
70
Subsector Sales EBITDA Examples
A/E/C 5.32x 21.01x
Automotive 4.61x 18.61x
Energy &
Environment
4.75x 19.20x
Financial
Services
4.86x 15.92x
Government 1.85x 12.34x
Healthcare 3.45x 14.77x
Real Estate 7.04x 19.81x
Vertical Other 4.53x 14.34x
Vertical Application Software Valuations
71
Vertical Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
May-
16
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x
EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
Deal Spotlights: Automotive
Sold to
Target: Itseez [Russia]
Acquirer: Intel Corporation [USA]
- Open-source computer vision and algorithmic pattern recognition software
Sold to
Target: SAIPS [Israel]
Acquirer: Ford Motor Company [USA]
- Algorithm-based software for 3D image and video processing
72
Vertical Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
May-
16
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x
EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
Deal Spotlights: Automotive
Sold to
Sold to
Target: Surround.io [USA]
Acquirer: UIEvolution [USA]
- Machine learning software to aid computer vision for businesses in the automotive
Target: Otto [USA]
Acquirer: Uber Technologies [USA]
Transaction Value: $700M
- Autonomous vehicle hardware and software systems via retrofitting of existing
trucks
73
Vertical Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
May-
16
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x
EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
Deal Spotlight: A/E/C
Sold to
Target: Textura Corporation [USA]
Acquirer: Oracle Corporation [USA]
Transaction Value: $663M (7.2x EV/S)
- Collaboration SaaS for payment management and project pre-qualification
for the commercial construction industry
- Previously acquired Corum-client Planswift
74
Vertical Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
May-
16
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x
EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
Deal Spotlights: A/E/C
Sold to
Sold to
Sold to
Target: Design Data [USA]
Acquirer: Nemetschek [Germany]
Transaction Value: $46.4M (4.6x EV/S)
- Steel modeling and fabrication software and SaaS
Target: Mtelligence [USA]
Acquirer: AspenTech [USA]
Transaction Value: $37.4M
- Industrial equipment prescriptive maintenance and related analytics software and SaaS
Target: ConstructConnect [USA]
Acquirer: Roper Technologies [USA]
Transaction Value: $632M
- Data management SaaS to the manufacturing and construction industry
75
2016 Vertical Megadeals
$1.1B
$8.8B
$2.7B
$1.7B
$2.2B
$2.4B
$3.6B
$1.0B
$1.1B
$2.6B
$2.7B
$1.2B
$3.2B
$4.0B
$1.0B
$1.1B $5.9B
$6.9B
$8.0B
Sold to
Target: Press Ganey [USA]
Acquirer: EQT [Sweden]
Transaction Value: $2.2B
- Establishes EQT’s foothold in the US healthcare market
76
Vertical Application Software Market
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
5.00 x
6.00 x
8.00 x
10.00 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16
May-
16
Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x
EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
Deal Spotlights: Healthcare
Target: Emmi Solutions [USA]
Acquirer: Wolters Kluwer Health [USA]
Transaction Value: $170M
- Patient engagement and analytics SaaS for healthcare providers
Target: Healthiest You [USA]
Acquirer: Teladoc [USA]
Transaction Value: $155.8M (15.6x EV/S)
- Tele-health patient engagement and healthcare management mobile application
Sold to
Sold to
77
IT Services – Developed Markets
Public Valuation Multiples
0.40 x
0.50 x
0.60 x
0.70 x
0.80 x
0.90 x
1.00 x
1.10 x
1.20 x
1.30 x
1.40 x
5.00 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 10.82 x 10.33 x 10.14 x 10.35 x 10.40 x 10.69 x 10.21 x 10.68 x 11.08 x 11.13 x 10.90 x 10.89 x 11.14 x
EV/S 0.97 x 0.90 x 0.98 x 1.06 x 1.08 x 1.17 x 1.16 x 1.14 x 1.26 x 1.32 x 1.27 x 1.21 x 1.30 x
78
Public Valuation Multiples
IT Services – Emerging Markets
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.07 x 15.19 x 13.94 x 14.76 x 14.80 x 17.40 x 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x
EV/S 3.20 x 3.05 x 2.98 x 3.14 x 3.15 x 3.13 x 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x
79
Deal Spotlights: Accenture
Target Date Target Country Description
January UK
Financial trading systems integration, systems migration and
consulting services
January Netherlands
CRM systems integration services, with a focus on Salesforce,
Apttus, The TAS Group, Zuora and ServiceMax SaaS
April Japan
Digital marketing services, including digital strategy, content
design and development
May USA Analytics-based consulting & BPO services
Jun Germany
Digital marketing and e-commerce optimization services ,
project management and IT consulting
June Israel
Cybersecurity phishing, malware and ransomware attack
simulation, vulnerability analysis and remediation
July Spain
Web and mobile application development, and digital signage
creation services
July Netherlands
Mobile development services including UI design, app. dev.,
usability testing, & system architecture
August Australia
Security systems integration services, specializing in identity
and access management, transaction security, anti-fraud and
authentication
August UK Software for insurance companies
IT Services Market
80
Deal Spotlights: Accenture
Target Date Target Country Description
September USA
IT consulting, BPO, systems and network integration, software
development and merchandising software
September Italy
Salesforce systems integration and Salesforce-based front-office
management software suites
September USA Workday systems integration & consulting
October UK
Brand marketing strategy consulting and customer UX
application, interfaces and Web design
October USA Cybersecurity integration and services
November Netherlands GIS systems integrator
November Canada IT and managed services
November UK
Digital and mobile campaign creation services for enterprises in
the UK
November France
Provides technology and management consulting, systems
integration and software development
December France
Managed security services and enterprise infrastructure
management
IT Services Market
81
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.07 x 15.19 x 13.94 x 14.76 x 14.80 x 17.40 x 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x
EV/S 3.20 x 3.05 x 2.98 x 3.14 x 3.15 x 3.13 x 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x
IT Services Market
Deal Spotlights: Security Services
Target: Aquilent [USA]
Acquirer: Booz Allen Hamilton [USA]
Transaction Value: $250M
- Software and Web development and cloud and security enablement services for federal US agencies
Sold to
Sold to
Target: Siege Technologies [USA]
Acquirer: Nehemiah Security [USA]
- Infosecurity integration services to businesses in the insurance, government, entertainment and IT industries
Sold to
Target: Advancive [USA]
Acquirer: Optiv Security [USA]
- Identity and access management (IAM) governance integration services
82
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 15.07 x 15.19 x 13.94 x 14.76 x 14.80 x 17.40 x 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x
EV/S 3.20 x 3.05 x 2.98 x 3.14 x 3.15 x 3.13 x 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x
IT Services Market
Deal Spotlights: IoT business services
Target: nfrastructure Technologies [USA]
Acquirer: Zones [USA]
- Provides IoT systems design, integration, software development and managed services
Sold to
Sold to
Target: Extensys [USA]
Acquirer: CompuCom Systems [USA]
- IoT business unit which provides Cisco-based IoT systems design, integration and consulting services
Sold to
Target: Rivetry [USA]
Acquirer: Rigado [USA]
- IoT product design & development
83
Consumer Application Software Market
Public Valuation Multiples
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
84
Subsector Sales EBITDA Examples
Casual Gaming 3.03x 21.24x
Core Gaming 2.04x 10.85x
Other 1.64x 52.29x
Consumer Application Software Valuations
85
Consumer Application Software Market
Deal Spotlights: Online Gaming
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
Target: Jagex [UK]
Acquirer: Zhongji Holding [China]
- Online games for consumers globally
- Charges Zhongji for the further acquisitions in the gaming space
Sold to
86
2016 Consumer Megadeals
$1.5B
$2.7B
$4.4B
$2.3B
$8.6B
$2.0B
Sold to
Target: Supercell [Finland]
Acquirer: Tencent [China]
Transaction Value: $8.5B
- Adds chart-topper Clash of Clans to Tencent’s portfolio
87
Consumer Application Software Market
Deal Spotlights: Wagering
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
Target: OpenBet [UK]
Acquirer: NYX Gaming Group [USA]
Transaction Value: $250M
- Multi-platform free-to-play mobile online video games for consumers
Sold to
Target: DEQ Systems [Canada]
Acquirer: Scientific Games [USA]
Transaction Value: $20.7M (2.9x EV/S)
- Casino gaming systems and related integration services for the gambling industry
Sold to
88
Consumer Application Software Market
Deal Spotlights: Fitness Tracking
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
Target: PlayerTek [Ireland]
Acquirer: Catapult Group [Australia]
Transaction Value: $2.7M
- GPS-based wearables for sports teams and athletes
Sold to
Target: FitnessKeeper [USA]
Acquirer: ASICS [Japan]
Transaction Value: $85M
- Runners' fitness tracking, run planning and goals monitoring mobile application
Target: Withings [France]
Acquirer: Nokia [Finland]
Transaction Value: $190M
- Wearable health and activity trackers
Sold to
Sold to
89
Consumer Application Software Market
Deal Spotlights: Facial Analysis
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
Sold to
Target: Masquerade Technologies [Belarus]
Acquirer: Facebook [USA]
- Real time video selfie animation mobile application
Target: FacioMetrics [USA]
Acquirer: Facebook [USA]
- iOS and Android mobile applications that capture and analyze facial expressions
Target: TheEyeTribe.com [Denmark]
Acquirer: Facebook [USA]
- Sensor-based eye-tracking hardware and software systems
Sold to
Sold to
90
Consumer Application Software Market
Deal Spotlights: Visual Intelligence Systems
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
Target: VOKE [USA]
Acquirer: Intel [USA]
- Live event virtual reality (VR) platform
Target: Surreal [USA]
Acquirer: STX [USA]
- Immersive short form programming for virtual reality devices
Sold to
Sold to
91
Consumer Application Software Market
Deal Spotlights: Travel
1.00 x
1.20 x
1.40 x
1.60 x
1.80 x
2.00 x
2.20 x
2.40 x
5.00 x
7.00 x
9.00 x
11.00 x
13.00 x
15.00 x
17.00 x
19.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x
EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
Target: Trover [USA]
Acquirer: Expedia [USA]
- Mobile travel photos sharing application and website for consumers
Sold to
Target: CityMaps [USA]
Acquirer: TripAdvisor [USA]
- GPS-enabled vector-based map creation mobile application for travelers
Sold to
92
Public Valuation Multiples
Internet Market
1.50 x
3.50 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x
EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x
93
Subsector Sales EBITDA Examples
Diversified
Internet
4.88x 17.67x
eCommerce 1.02x 29.82x
Social Network 4.57x 20.22x
Travel & Leisure 5.75x 19.21x
Internet Valuations
94
Internet Market
1.50 x
3.50 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x
EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x
Target: Cruise.co.uk [UK]
Acquirer: Bridgepoint Capital [UK]
Transaction Value: $69.3M
- Online cruise booking website
Sold to
Sold to
Target: Yatra [India]
Acquirer: Terrapin 3 Acquisition Corporation [USA]
Transaction Value: $218M (3.5x EV/S)
- Online travel reservations services
Sold to
Deal Spotlights: Online Travel
Target: Lifealike (Onefinestay) [UK]
Acquirer: Accor [France]
Transaction Value: $168.5M
- Vacation homesharing classifieds website
95
Internet Market
1.50 x
3.50 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x
EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x
Deal Spotlights: Online Ticketing
Target: Vivid Seats [USA]
Acquirer: Vista Equity Partners [USA]
- Event ticket resale website
- Partnered with Vista to strengthen the core offerings with the necessary resources
Target: Ticketbis [Spain]
Acquirer: StubHub (ebay) [USA]
Transaction Value: $166M (estimated)
- Event ticket resale website
- Helps StubHub to expand into over 40 additional markets
Sold to
Sold to
Target: Wantickets RDM [USA]
Acquirer: LiveXLive [USA]
- Music event ticketing website
- Helps LiveXLive’s parent company Loton Corp to enter the music ticketing sector
Sold to
96
Internet Market
1.50 x
3.50 x
5.50 x
12.00 x
14.00 x
16.00 x
18.00 x
20.00 x
22.00 x
24.00 x
26.00 x
28.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x
EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x
Deal Spotlights: Online Sports
Target: Racing Post [UK]
Acquirer: Exponent Private Equity [UK]
- Online horse & dog racing news, analysis and bloodstock data via newspaper,
website and mobile app
Sold to
Sold to
Target: Punters.com.au [Australia]
Acquirer: News Corp [Australia]
- Australia’s largest digital racing publisher
- Punters got more marketing support having provided News Corp Australia with website and
technology assistance
97
Deal Spotlight: Online Food Delivery
Target Acquirer Deal Value
Target
Country
Acquirer
Country
Description
- Germany Germany
Leading online food delivery
marketplace
$200M China China
Online and mobile crowd-
sourced ordering and delivery
services
$253.7M UK UK
Online food delivery service,
searchable directory and rating
of restaurants
$83.8M Canada UK
Online food delivery service and
mobile app
$100M Russia Russia Online food delivery service
Internet Market
98
Infrastructure Software Market
Public Valuation Multiples
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
99
Subsector Sales EBITDA Examples
Endpoint 3.67x 13.63x
IT Services
Management
4.14x 24.83x
Network
Management
2.36x 9.81x
Security 3.27x 16.71x
Storage
& Hosting
2.68x 11.01x
Other 5.32x 14.78x
Infrastructure Software Market
100
Infrastructure Software Market
Deal Spotlights: Security
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: Invotas [USA]
Acquirer: FireEye [USA]
Transaction Value: $20M
- Automated threat response software and SaaS
Sold to
Target: iSIGHT Partners [USA]
Acquirer: FireEye [USA]
Transaction Value: $200M (5x EV/S)
- Сybersecurity threat intelligence, detection and management SaaS
Sold to
101
Infrastructure Software Market
Deal Spotlight: Security
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Sold to
Target: Return Path [USA]
Acquirer: Proofpoint [USA]
Transaction Value: $18M
- Standards-based DMARC authentication and proprietary sender-analysis SaaS
- Enhances Proofpoint’s suite of email protection solutions
102
2016 Infrastructure Megadeals
$1.1B $39.1B
$1.3B $1.6B
$1.4B
$1.8B
$2.0B $2.2B
$2.2B $4.0B
$5.5B$4.7B
$1.5B $8.8BNon-Core Software Assets
$3.9B $32.4B
$1.8B
Sold to
Target: Blue Coat Systems [USA]
Acquirer: Symantec Corporation [USA]
Transaction Value: $4.7B (7.8x EV/S)
- Builds on Symantec’s PC, e-mail and data center products
103
Infrastructure Software Market
Deal Spotlights: Visual Intelligence Systems
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: AQSense [Spain]
Acquirer: Cognex [USA]
Transaction Value: $2.5M
- Web-based 3D machine vision software
Sold to
Target: EnShape [Germany]
Acquirer: Cognex [USA]
Transaction Value: $7.6M
- Advanced 3D vision sensors and related software
Sold to
104
Infrastructure Software Market
Deal Spotlights: AI Enablement
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: Turi [USA]
Acquirer: Apple [USA]
Transaction Value: $200M
- Open source, big data, machine-learning predictive analysis software
Sold to
Sold to
Target: Emotient [USA]
Acquirer: Apple [USA]
- Facial recognition and related expression analytics SaaS
Target: Tuplejump [India]
Acquirer: Apple [USA]
- Data management solutions, including a FILO open source project
Sold to
105
Infrastructure Software Market
Deal Spotlights: Internet of Things
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: PLAT.ONE [Italy]
Acquirer: SAP [USA]
- Cloud-based enterprise-grade IoT and M2M provisioning software
Sold to
Target: Solair [Italy]
Acquirer: Microsoft [USA]
- IoT platform-as-a-service for machine-to-machine connectivity creating
Sold to
106
Infrastructure Software Market
Deal Spotlights: Internet of Things
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: Bluvision [USA]
Acquirer: HID Global [USA]
- Bluetooth-enabled low energy (BLE) sensor systems, including beacons and
tracking SaaS
Sold to
Target: Dojo-Labs [Israel]
Acquirer: BullGuard [UK]
- IoT security devices and related management software
Sold to
107
Infrastructure Software Market
Deal Spotlights: Cloud Management
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: ITapp [USA]
Acquirer: ServiceNow [USA]
Transaction Value: $15M (7.5x EV/S)
- Hybrid cloud management software
Sold to
Target: CliQr [USA]
Acquirer: Cisco [USA]
Transaction Value: $260M
- Hybrid cloud application management software
Sold to
108
Infrastructure Software Market
Deal Spotlights: Cloud Management
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Target: 3Scale [Spain]
Acquirer: Red Hat [USA]
Transaction Value: $29M (7.3x EV/S)
- API Management platform gives the tools to take control of API
Sold to
Target: Apigee [USA]
Acquirer: Google [USA]
Transaction Value: $625M (6.5x EV/S)
- API management SaaS for businesses globally
Sold to
109
IT Services Market
Deal Spotlight: IT Research Services
1.00 x
1.50 x
2.00 x
2.50 x
3.00 x
3.50 x
4.00 x
4.50 x
6.00 x
7.00 x
8.00 x
9.00 x
10.00 x
11.00 x
12.00 x
13.00 x
14.00 x
15.00 x
16.00 x
EV/SEV/EBITDA
Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x
EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
Sold to
Target: CEB [USA]
Acquirer: Gartner [USA]
Transaction Value: $2.6B (3.5x EV/S and 18.5x EBITDA)
- Business management and IT consulting services
- Creates a research and advisory powerhouse for all major enterprise functions
110
Corum Research Report
Elon Gasper
EVP, Research
Amber Stoner
Director of Research
Yasmin Khodamoradi
Analyst
Amanda Tallman
Senior Analyst
Thomas Wright
Analyst
111
Tech Leader Panel – The Year Ahead
Karl Popp
@karl_popp
SAP
Peter Coffee
@petercoffee
Salesforce
Henry Hu
@HenryMHu
IBM
Reese Jones
@Reese_Jones
Singularity University
Join the conversation!
@CorumGroup
#FORECAST2017
112
Special Guest
Peter Coffee is VP for Strategic Research at salesforce.com inc. He has been with the company for
seven years, following nineteen years as a columnist and editor with the industry publications PC Tech
Journal, PC Week and eWEEK. He works with IT managers and application developers to build a global
community on the Salesforce1 cloud platform, combining the Force.com, Heroku1 and ExactTarget Fuel
service portfolios. Peter holds an engineering degree from MIT and an MBA from Pepperdine University,
with subsequent faculty appointments in IT management at Pepperdine; expert-systems programming at
UCLA; and business analytics at Chapman College. He is the author of two books, “How To Program
Java” and “Peter Coffee Teaches PCs”. He is a winner of the Neal Award for excellence in business
journalism and the McGan “Silver Antenna” Award for service to amateur radio. In recent years, Peter has
worked with customers and partners throughout the Americas and in Australia, India and EU countries as
well as lecturing at MIT, Harvard, Stanford, the CalTech/MIT Enterprise Forum and UCLA.
Peter Coffee
Salesforce
VP for Strategic Research
113
Special Guest
Dr. Karl Michael Popp is senior director of mergers and acquisitions in the corporate development
team at SAP AG, responsible for holistic analysis of acquisition opportunities and post merger
integration. With more than 20 years of experience in the software business, he evaluated and
successfully integrated many acquired companies into SAP. In addition, he continually improves the
M&A process for SAP.
Before working on M&A, Karl has managed several dozen strategic OEM and Resell partnerships for
SAP NetWeaver, one of SAP´s technology platforms. Karl has published several books on the
software business, including “Profit from Software Ecosystems” and the recently published book
“Mergers and Acquisitions in the Software Industry – Foundations of Due Diligence”.
Dr. Karl Popp
SAP
Senior Director, Corp. Dev.
114
Special Guest
Inventor, venture investor, and business strategist Reese Jones has engaged in over a dozen
companies' start up, financing, development, IPO and acquisitions. They include Netopia, where he
served as CEO until its acquisition by Motorola in 2006, after having founded it as Farallon Computing,
then taken it public in 1996. Other notable technology endeavors in which he's applied his leadership
include Convergence, Mediabolic, and Jobvite, as well as Venture Partnerships at Accel, August, and
TelesoftVC. He is a Fellow in Innovation and Entrepreneurship at UC Berkeley, where as a grad
student in the 1980s he started and ran BMUG, which became the largest nonprofit computer user
group of its kind. Reese is an Associate Founder and active Trustee of Singularity University. His
current interests include network theory, human/Internet interfaces, phones as synapses, and Internet
evolution.
Reese Jones
Singularity University
Associate Founder
115
Special Guest
Henry Hu is a IBM Corporate Development Executive for M&A Strategy, Innovation & Investment. Henry
leads M&A strategy development for IoT, evaluates inbound acquisition opportunities for IoT, Analytics,
Watson and Health businesses. He provides corporate support to IBM's tech accelerators and incubator, and
acts as liaison with several boutique investment banks.
Prior to his current role, Henry was CFO of IBM Systems Strategic Imperatives for Finance and
Transformation. His professional background in finance spans IBM, A.T. Kearney and Ford Motor
Company. He has been recognized by Ascend, a Pan-Asian professional organization, as a High-Impact
Leader for his work in promoting Pan-Asian leadership in business and the community.
Henry holds a B.S. in International Trade and Computer Science from Shanghai Jiao Tong University, an M.S.
in Engineering Management from Stanford, and an Executive MBA from Columbia University.
Henry Hu
IBM
Corporate Development Executive
116
Tech Leader Panel – The Year Ahead
Karl Popp
@karl_popp
SAP
Peter Coffee
@petercoffee
Salesforce
Henry Hu
@HenryMHu
IBM
Reese Jones
@Reese_Jones
Singularity University
Join the conversation!
@CorumGroup
#FORECAST2017
117
Upcoming Conference Schedule
Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position,
research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A
event ever – participants have done over $1 trillion in transaction value.
Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends,
valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.”
www.CorumGroup.com/Events
Jan. 31: Indianapolis – MB
Feb. 1: Dayton – MB
Feb. 7: Las Vegas – MB
Feb. 7: Seattle – SUSO
Feb. 16: Houston – SUSO
Mar. 7: Kansas City – MB
Mar. 8: St. Louis – MB
…With more events in:
Portland London Sacramento Los Angeles
Reston Dublin Costa Mesa Miami
118
www.corumgroup.com
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  • 1. 1 Forecast 2017: Global Tech M&A January 19, 2017 Join the conversation! @CorumGroup #FORECAST2017
  • 2. 2 A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world. He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the nation’s most active regional technology trade association. He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to Europe’s top technology firms A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success, including Power Planning. He is a frequent lecturer and author. Welcome Bruce Milne CEO Corum Group Ltd.
  • 3. 3 Agenda Welcome Tech M&A Market Drivers 2017 Predictions Top 10 Disruptive Tech Trends Clouds on the Horizon? Annual Research Report Luminary Panel Q&A Peter Coffee – Salesforce Dr. Karl Popp – SAP Reese Jones – Singularity University Henry Hu – IBM
  • 4. 4 2017 Six Tech M&A Market Drivers 1. Record cash – strategic & financial buyers 2. Strategic imperative – disruptive trends 3. Record financial markets 4. More buyers – broader deal interest 5. Inexpensive debt (PE buyouts) 6. Repatriation of US tech funds ($1 Trillion)
  • 5. 5 Timothy joined Corum in 2011, and oversees the company’s marketing efforts globally from the headquarters near Seattle. Chief among these is Corum's extensive conference schedule, “Selling Up, Selling Out,” the Merge Briefing, the Tech M&A Monthly webcast and Corum's platinum sponsorship of the World Financial Symposiums' live events and Market Spotlight series. Through these events, Corum Group serves as the world’s leading educator in technology mergers and acquisitions. Prior to joining Corum, Timothy served as marketing and product manager for GIS software startup Depiction, Inc., and previously worked in marketing for VizX Labs, a pioneering SaaS startup delivering DNA analysis tools. In addition to marketing for software startups, Tim has worked for a US Senate campaign and taught science in Rio de Janeiro. Timothy graduated Magna Cum Laude from Bethel University in St. Paul, Minnesota, with degrees in History and Biology. 2017 Predictions & 2016 Scorecard Timothy Goddard SVP, Marketing Corum Group Ltd.
  • 6. 6 Corum 2016 Prediction Scorecard 0 Food ordering & delivery apps integrated into gaming & social media. 0 Apple makes a major acquisition in the IoT or Enterprise space. 0 Booming Indian product M&A doubles, including at least one megadeal. 6 Private Equity acquires an underperforming public Internet company such as Groupon, RetailMeNot or Yahoo. 7 Consumer traction in entry-level VR driven by immersive sports and viral videos—not games. 10 Drone software M&A takes off, with image processing and analytics at the forefront. 10 Asian Internet giants acquire strategic European travel sites and services. 10 Vehicles, not houses or cities, become the central hub of the IoT—driving a global M&A wave with multiple megadeals.
  • 7. 7 2017 Predictions  Amazon will make an unusual acquisition.  GE will extend its shopping spree, breaking into the top three tech company acquirers.  More blockchain-related acquisitions by fintech and traditional finance firms.  Repatriation leads to multiple acquisitions of US “unicorn” tech firms.
  • 8. 8 2017 Predictions  Sovereign funds will cut out the middleman stepping into a more direct role in tech M&A.  Major AI players will make notable acquisitions in data security.  Industrial sector follows GE & Siemens into tech M&A including IoT, SCM & related deals.  More major tech firms make a move into the connected car space.
  • 9. 9 Corum Top Ten Technology Trends 2017 AI Enablement IoT Software Visual Intelligence Systems Digital Currency Flow Data Science Monetization Online Exchanges Omni-channel Sales Connected Health Focused IT Services Data Security CORECONTOUR
  • 10. 10 Allan Wilson Vice President Corum Group Ltd. Allan has over 30 years of executive and entrepreneurial experience and has built and sold several software companies in sectors including, manufacturing, supply chain, big data, predictive analytics and social networks. He has deep understanding of Aerospace, Automotive, High Tech, Healthcare, Consumer Products and Military Contracting operating models. Allan has extensive international experience and lived in Germany for a time working for SAP, following the sale of his company to them in 2009. Putting AI to work by means of big data and feedback #1: AI Enablement Corum Top Ten Disruptive Technology Trends 2017
  • 11. 11 Putting AI to work by means of big data and feedback #1: AI Enablement  Nascent AIs and other machine learning platforms need data.  Need tasks that provide data, benefit from improving expertise, then provide feedback to improve the platform.  Business cases emerging rapidly across all sectors.  Significant stores of unique data can short-circuit “build vs. buy” debates in M&A. Corum Top Ten Disruptive Technology Trends 2017
  • 12. 12 Rob Schram Senior Vice President Corum Group Ltd. Rob has over 30 years of executive and entrepreneurial experience in multiple technologies: Integrated circuit testing, industrial process automation and control, communications software, security software, and energy software and services. Rob has founded and sold several companies and engaged in two IPOs. He was most recently CEO of Evergreen Fuel Technologies, Inc. in the energy sector. Rob is a broadly skilled strategic development professional with a proven reputation for targeting, negotiating and developing profitable ventures and a demonstrated ability to successfully analyze an organization's critical business requirements, identify deficiencies and opportunities, and develop innovative and cost-effective solutions for enhancing competitiveness, increasing revenues, and improving customer relationships. Emerging platforms, standards & analytics #2: IoT Software Corum Top Ten Disruptive Technology Trends 2017
  • 13. 13 Emerging platforms, standards & analytics #2: IoT Software  Internet of Things (IoT) growth brings us into its first full software cycle.  Each “Thing” needs platforms, communication, analytics, etc.  Competing platforms and associated ecosystems beginning to coalesce.  IoT software often, but not always, inextricably enmeshed with hardware.  Compatibility-driven, as in other cycles of disruption. Corum Top Ten Disruptive Technology Trends 2017
  • 14. 14 Daniel Bernstein Vice President Corum Group Ltd. Daniel Bernstein has worked in a number of roles over a twenty year career in high technology, most recently as the founder and CEO of Sandlot Games Corporation, a leading casual games publisher and developer. Having sold Sandlot Games to Digital Chocolate in 2011, Daniel started a small games studio and a consulting practice where he advises larger companies such as RealNetworks and smaller high growth businesses on product development, strategic initiatives, and M&A opportunities. Prior to Sandlot Games, Daniel Bernstein held director level positions in companies such as Wild Tangent and Monolith. An accomplished composer, Daniel also writes music for most of the games he works on. Daniel holds a BS in Computer Science and an MA in Music Composition from the University of Virginia. Intersection of AI, computer vision & analytics #3: Visual Intelligence Systems Corum Top Ten Disruptive Technology Trends 2017
  • 15. 15 Intersection of AI, computer vision & analytics #3: Visual Intelligence Systems Corum Top Ten Disruptive Technology Trends 2017  Evolution of Positioning Intelligence beyond GPS required computer vision.  Drones and self-driving cars driving advanced vision tech with even larger implications.  Retail, security, energy, agriculture, advertising are all being impacted.  Companies creating practical solutions with this tech— especially utilizing analytics— are in high demand.
  • 16. 16 Rob Griggs Vice President Corum Group Ltd. As a serial entrepreneur and investment banker, Rob Griggs has had a successful 35+ year career in the high technology arena. Early in his career he was a top performer at Apple before starting his first software company in the mid-1980’s. As a founder of Authorware / MacroMedia, NetRadio, Wit Capital, and many other companies, Rob’s sales, marketing, business development and capital raising skills have been honed over supporting hundreds of company financial transactions during his career. His success and extensive experience in software M&A uniquely qualify him as an expert in building value and realizing wealth. Rob joined Corum Group, the world’s leading software M&A firm, with a specific focus on educating and helping prospective sellers maximize the value of their technology companies. Decreasing friction in payments & exchange #4: Digital Currency Flow Corum Top Ten Disruptive Technology Trends 2017
  • 17. 17 Decreasing friction in payments & exchange #4: Digital Currency Flow  Currency flow moving towards fewer barriers, reduced regulation and less friction on transactions globally.  Banks face competition from nimbler mobile and web point solutions.  Includes alternative currencies— from blockchain/bitcoin to in- game currencies to Starbucks payments.  Software & systems that speed or harness payment flow have significant potential. Corum Top Ten Disruptive Technology Trends 2017
  • 18. 18 Entertainment software entrepreneur Jim Perkins is directly responsible for publishing some of the industry’s biggest franchises, including Unreal, Duke Nukem, Wolfenstein, Doom, Hunting Unlimited, and Driver. A well-known senior executive with a 22-year track record of publishing such bestselling hits, he founded and grew two highly successful software publishing companies (FormGen and ARUSH) from start-ups to multi-million dollar enterprises. Jim also launched Radar Group, the first Transmedia Incubation Company to monetize entertainment franchises across all media, including film and television. His success and extensive experience in software production, marketing and public relations, packaging, online and retail distribution and software M&A, uniquely qualify him as an expert in building value and realizing wealth. Jim joined Corum Group, the world’s leading software M&A firm, with a specific focus on educating and helping prospective sellers maximize the value of their digital media companies. Jim Perkins Executive Vice President Corum Group, Ltd. Maximizing return with real-time analytics #5: Data Science Monetization Corum Top Ten Disruptive Technology Trends 2017
  • 19. 19 Maximizing return with real-time analytics #5: Data Science Monetization  In a world of freemium, free-to- play & declining ad effectiveness, turning users or viewers into dollars is a premium capability.  Robust analytic tools are no longer optional, especially for consumer-facing companies.  Gaming companies are leading the way, deriving value from their analytic capabilities as much as entertainment.  Video ads are close behind with opportunities in e-commerce, brick & mortar, B2B and beyond. Corum Top Ten Disruptive Technology Trends 2017
  • 20. 20 Ivan Ruzic, Ph.D. Vice President Corum Group Ltd. Dr. Ivan Ruzic has had a successful 30+ year career in the software business that has included virtually every senior executive role. His resume spans marquee companies such as BEA systems, Novell and Borland as well as multiple startups including his own. His international experience is extensive and in addition to the United States has been involved in mergers and acquisitions in Europe, Africa and Asia. His success and extensive experience qualify him as an expert in building value and realizing wealth. Ivan joined Corum Group, the world’s leading software M&A firm, with a specific focus on educating and helping prospective sellers maximize the value of their technology companies. Connecting Creators & Consumers #6: Online Exchanges Corum Top Ten Disruptive Technology Trends 2017
  • 21. 21 Connecting creators & consumers #6: Online Exchanges  Uber & others recharging the concept that created online commerce, putting unused capacity to work.  Not just connecting buyers & sellers, but creating previously non-existent opportunities on both sides.  Disruptive opportunities include:  Personalization  Real-time commerce  Financial disintermediation Corum Top Ten Disruptive Technology Trends 2017
  • 22. 22 Peter Prince Vice President Corum Group Ltd. Peter Prince has spent the last 27 years involved in starting and growing software companies or large divisions of international software companies. As well as following his entrepreneurial spirit he has held a number of senior roles for both privately held and public companies. He was part of several key acquisitions such as Software Artistry to IBM, Infinium to SSA GT and SSA Global to Golden Gate (Infor). He was President of SSA Global EMEA prior to its sale and then CEO of Cogniti. Peter has a diverse background within the software industry spanning Operations, Sales, Mergers and Acquisitions and Integration. He’s been retained by some of the largest Private Equity firms in an advisory capacity. Peter has also focused on investing both time and funding into start-up and young companies over the recent years in a diverse range of sectors. He attended Chiltern University attaining a business degree and later attended Harvard Business School successfully completing an executive course, Launching New Ventures. Purchasing decisions anywhere, any platform #7: Omni-Channel Sales Corum Top Ten Disruptive Technology Trends 2017
  • 23. 23 Purchasing decisions anywhere, any platform #7: Omni-Channel Sales  Consumer platforms & devices continually fragmenting.  Marketing keeping pace – next challenge is sales, both decision points and actual purchase.  Point at which money changes to product must be immediately with customer, moving closer by being on their favorite device.  Persuasion must move there as well, taking new forms as it does.  Consumer brands leading the way, but enterprise is not far off. Corum Top Ten Disruptive Technology Trends 2017
  • 24. 24 David Levine Vice President Corum Group Ltd. Dave joined Corum in 2015 and has a diverse background in technology and life sciences. As an executive and entrepreneur, Dave has been operating and investing in companies sitting at the convergence of commerce and eCommerce as well as innovative life science businesses for over twenty-five years. Recently, Dave was CEO North America for Gaxsys, an eCommerce and logistics company that is a leader in last mile logistics and fulfillment for eCommerce marketplaces. Dave has been on both sides of the mergers and acquisitions table having sold a life science technology company, facilitated sell side and buy side technology transactions and has also scaled multiple technology companies globally in the eCommerce, life sciences and innovation intelligence markets. Dave sits on boards of public and private companies including one company that recently filed for an IPO. Dave holds a business degree from the Indiana University, Kelley School of Business. Linking people to their health data & services #8: Connected Health Corum Top Ten Disruptive Technology Trends 2017
  • 25. 25 Linking people to their health data & services #8: Connected Health  Technological, regulatory and demographic changes converging to create significant opportunity.  Leveraging new tech: smartphones, trackers, connected medical devices, genomics, remote monitoring.  Improved self-care and remote care/diagnosis.  Makes healthcare more patient-centric by enabling healthcare consumerism. Corum Top Ten Disruptive Technology Trends 2017
  • 26. 26 Steve joined Corum after 25 years of executive experience in various high-tech industries with both public and private venture-backed startups. He has extensive global experience, opening international markets and growing sales from zero to tens of million in revenue. He has been on the forefront of selling several companies and spinning off software divisions, highlighted by the sale of GetFon to Alestra (AT&T Mexico). He is fluent in Spanish. Steve was the founding CEO of Solera Networks, a real-time intrusion detection security company. He also co-founded Auction Trust Network, an eCommerce company for online exchanges; which he sold to MediaForge (Rakuten Marketing). Steve is a board member of several software companies and has industry expertise in several areas: enterprise apps and infrastructure, security, mobile and wireless, media & entertainment, supply chain, and embedded devices/systems (IoT). Steve Jones Vice President Corum Group Ltd. Differentiation drives new value in a sleepy sector #9: Focused IT Services Corum Top Ten Disruptive Technology Trends 2017
  • 27. 27 Differentiation drives new value in a sleepy sector #9: Focused IT Services  New and more pervasive technologies creating new needs for maintenance, extension and utilization.  Teams that provide customer value around a specific technology, sector or problem are seeing increased value.  Buyers seeing more value in purpose-built IP emerging out of services firms.  Services on the edge of key trends seeing particular interest. Corum Top Ten Disruptive Technology Trends 2017
  • 28. 28 Jon joined Corum in 2010 out of their Seattle headquarters and is now based in Amsterdam. He has close to 30 years experience serving high technology companies with the last 20 mainly in chief operating and chief executive roles. During this time Jon has become known for his ability to successfully integrate strategies and tactics into well executed operating plans, building strong teams and achieving excellent results. Jon has served as President and CEO of The PowerTech Group, a security and compliance software company sold to Help/Systems in 2008, and Microserv Technology Services, a nationwide tech services company which was acquired by Halifax Corporation in 2003. Earlier he served as President and COO of Traveling Software, a leading developer of communications software in Seattle. Prior to his operating roles Jon held vice president roles in sales, marketing and business development for technology companies. Jon has taught in the software product management program at the University of Washington and holds a business administration degree from San Francisco State University. Jon Scott Managing Director Corum Group International Building barriers in an age of blurred lines #10: Data Security Corum Top Ten Disruptive Technology Trends 2017
  • 29. 29 Building barriers in an age of blurred lines #10: Data Security  New technologies creating new risks from freer flowing data.  High impact breaches (DNC, Yahoo, Dyn DNS, Oracle Micros) drive broad recognition of security needs.  Key trends include security analytics, rapid detection & in-process threat response.  Internet of Things opening a new front in this fight – the Dyn DDoS attach came from infected IoT devices. Corum Top Ten Disruptive Technology Trends 2017
  • 30. 30 1. Geopolitical Disruption 2. Currency Crisis 3. China – Capital Outflow Restrictions 4. Inflation/Rising Interest Rates 5. Stock Market Adjustment 6. M&A Cycle Ends 6 Global M&A Concerns
  • 31. 31 Corum Research Report Elon Gasper EVP, Research Amber Stoner Director of Research Yasmin Khodamoradi Analyst Amanda Tallman Senior Analyst Thomas Wright Analyst
  • 32. 32 Public Markets -20% -15% -10% -5% 0% 5% 10% 15% Weekly Percentage Change NASDAQ S&P TECH Dow Jones
  • 33. 33 The Bull Market, 2009-Present 0% 50% 100% 150% 200% 250% 300% 350% Daily Percentage Change NASDAQ S&P TECH Dow Jones 2016
  • 34. 34 Corum Index Market Transactions 20162015 4307 3948 Mega Deals 59 76 Largest Deal $63B $39B Pipeline 2015 2016 Private Equity Deals 232 323 VC Backed Exits 658648 Attributes 20162015 34% Cross Border Transactions 35% Start-Up Acquisitions 12%13% 15 yrs14 yrs Average Life of Target 39% 29% 8% 38% 2%
  • 35. 35 Corum Index Market Transactions 20162015 4307 3948 Mega Deals 59 76 Largest Deal $63B $39B Pipeline 2015 2016 Private Equity Deals 232 323 VC Backed Exits 658648 Attributes 20162015 34% Cross Border Transactions 35% Start-Up Acquisitions 12%13% 15 yrs14 yrs Average Life of Target 39% 29% 8% 38% 2%
  • 36. 36 Corum Index Market Transactions 20162015 4307 3948 Mega Deals 59 76 Largest Deal $63B $39B Pipeline 2015 2016 Private Equity Deals 232 323 VC Backed Exits 658648 Attributes 20162015 34% Cross Border Transactions 35% Start-Up Acquisitions 12%13% 15 yrs14 yrs Average Life of Target 39% 29% 8% 38% 2%
  • 37. 37 Corum Index Market Transactions 20162015 4307 3948 Mega Deals 59 76 Largest Deal $63B $39B Pipeline 2015 2016 Private Equity Deals 232 323 VC Backed Exits 658648 Attributes 20162015 34% Cross Border Transactions 35% Start-Up Acquisitions 12%13% 15 yrs14 yrs Average Life of Target 39% 29% 8% 38% 2%
  • 38. 38 24 21 20 15 14 13 12 12 11 11 10 10 10 10 Top Strategic Acquirers – 2016
  • 39. 39 J2 Global Acquisitions 2016 Digital MediaBusiness Cloud Services Security Other Email
  • 40. 40 24 21 20 15 14 13 12 12 11 11 10 10 10 10 Top Strategic Acquirers – 2016
  • 41. 41 Buyer Leaderboard Rotation 2015 - 2016 Change 2015 2016 General Electric 0 11 350% Oracle 2 9 200% Verizon 4 12 100% Salesforce 6 12 57% Hexagon AB 7 11 31% Google 16 21 26% J2 Global 19 24 25% Deloitte 8 10 25% Constellation 20 15 36% Cisco 11 7 50% Microsoft 20 10 ∞
  • 42. 42 39 21 21 19 19 16 16 15 14 13 13 12 11 11 11 Top Private Equity Acquirers – 2016
  • 43. 43 2016 Technology Megadeals $1.0B $1.3B $1.5B $1.7B $3.2B $3.3B $4.4B and others $4.8B $7.0B $26.2B $1.1B $39.1B $1.3B $1.6B $1.4B $1.8B $2.0B $2.2B $2.2B $4.0B $5.5B $1.5B $8.8BNon-Core Software Assets $3.9B $32.4B $1.8B $3.1B $5.0B $6.0B IT Services division $6.0B $1.5B $2.6B $4.3B $1.5B $1.8B $2.4B $3.3B $1.1B $1.5B $1.7B $1.4B $1.4B $1.6B $2.8B $9.3B $2.1B $2.5B $2.8B $3.0B $1.8B $1.5B $2.7B $2.0B $4.4B $2.3B $8.6B $1.1B $8.8B $2.7B $1.0B $1.1B $1.2B $1.1B $1.7B $2.2B $2.4B $2.6B $2.7B $3.2B $4.0B $5.9B $6.9B $8.0B $3.6B $1.0B $4.7B
  • 44. 44 76 Megadeals of 2016 - $323B Total INTERNET 10 Deals – $54.4B INFRASTRUCTURE 17 Deals – $115.3B IT SERVICES 9 Deals – $31.8B CONSUMER 6 Deals – $21.5B HORIZONTAL 15 Deals – $38.7B VERTICAL 19 Deals – $61.1B
  • 45. 45 2016 Vertical Megadeals $1.1B $8.8B $2.7B $1.7B $2.2B $2.4B $3.6B $1.0B $1.1B $2.6B $2.7B $1.2B $3.2B $4.0B $1.0B $1.1B $5.9B $6.9B $8.0B Sold to Target: Fleetmatics [Ireland] Acquirer: Verizon Communications [USA] Transaction Value: $2.4B (7.5 EV/S) - GPS-based vehicle tracking SaaS
  • 46. 46 2016 Infrastructure Megadeals $1.1B $39.1B $1.3B $1.6B $1.4B $1.8B $2.0B $2.2B $2.2B $4.0B $5.5B$4.7B $1.5B $8.8BNon-Core Software Assets $3.9B $32.4B $1.8B Sold to Target: SoftBank Corp. [Japan] Acquirer: ARM Holdings [United Kingdom] Transaction Value: $32.4B (20.9x EV/S and 46.2x EBITDA) - IP for use in IoT connectivity chips for electronics manufacturers
  • 47. 47 2016 Horizontal Megadeals $2.4B $3.3B $1.4B $1.4B $2.1B $2.5B $1.1B $1.5B $1.6B $2.8B $2.8B $3.0B $1.7B $9.3B$1.8B Sold to Target: Deltek [USA] Acquirer: Roper Technologies [USA] Transaction Value: $2.8B - ERP, HR management, CRM and project management software
  • 48. 48 2016 Internet Megadeals $1.0B $1.3B $1.5B $1.7B $4.4B and others $3.2B $3.3B$4.8B $7.0B $26.2B Sold to Target: LinkedIn Corporation [USA] Acquirer: Microsoft Corporation [USA] Transaction Value: $26.2B (8.2x EV/S and 74x EBITDA) - Social networking website for professionals and businesses
  • 49. 49 2016 IT Services Megadeals $3.1B $5.0B $6.0B $6.0B $1.5B $2.6B $1.5B $1.8B IT Services division $4.3B Sold to Target: Avnet (Technology Solutions business unit) [USA] Acquirer: Tech Data Corp. [USA] Transaction Value: $2.6B (0.3x revenue) - Avnet's technology solutions business unit
  • 50. 50 2016 Consumer Megadeals $1.5B $2.7B $4.4B $2.3B $8.6B $2.0B Sold to Target: China Music Corporation [China] Acquirer: Tencent [China] Transaction Value: $2.3B - Multi-platform music streaming services
  • 51. 51 North America Sellers 2311 Buyers 2513 Europe Sellers 1053 Buyers 889 Latin America Sellers 40 Buyers 15 Mideast/Africa Sellers 70 Buyers 43 Asia Sellers 440 Buyers 452 Source: 451 Research
  • 52. 52 2016 North American Deals West Sellers 837 Buyers 855 Midwest Sellers 285 Buyers 322 Canada Sellers 155 Buyers 161 Northeast Sellers 548 Buyers 716 Southeast Sellers 486 Buyers 459 Source: 451 Research Canada South Korea New York France
  • 53. 53 2016 Latin American Deals Latin America Sellers 40 Buyers 15 Source: 451 Peru USA Brazil Israel
  • 54. 54 2016 European Deals Nordics Sellers 113 Buyers 131 Western Europe Sellers 881 Buyers 731 Eastern Europe Sellers 59 Buyers 27 Source: 451 Czech Republic United States United StatesFrance Germany United States Norway China
  • 55. 55 2016 Asia-Pacific Deals China Sellers 52 Buyers 88 Far East Sellers 41 Buyers 71 SE/Oceania Sellers 186 Buyers 151 India Sellers 161 Buyers 142 Source: 451 Australia Canada USAIndia Singapore Philippines China China
  • 56. 56 North America Sellers 2311 Buyers 2513 Europe Sellers 1053 Buyers 889 Latin America Sellers 40 Buyers 15 Mideast/Africa Sellers 70 Buyers 43 Asia Sellers 440 Buyers 452 Source: 451 Research Israel Hungary
  • 58. 58 Market Sectors Horizontal Application Software Vertical Application Software Consumer Application Software Infrastructure Software Internet IT Services and BPO Join the conversation! @CorumGroup #FORECAST2017
  • 59. 59 Horizontal Application Software Market Public Valuation Multiples 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x
  • 60. 60 7-year Horizontal EV/S Trends Human Resources SCM ERP Business Intelligence CRM SalesMultiple 1 2 3 4 5 6 7 8 2010 2011 2012 2013 2014 2015 2016
  • 61. 61 Subsector Sales EBITDA Examples Business Intelligence 3.40x 14.95x Marketing & Ad Tech 1.71x 14.66x CRM 1.71x 16.30x ERP 3.47x 20.28x Human Resources 6.40x 30.30x SCM 6.12x 21.98x Payments 3.88x 15.45x Other 3.18x 18.39x Horizontal Application Software Valuations
  • 62. 62 Horizontal Application Software Market Deal Spotlights: AI Enablement 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x Sold to Target: Corrigon [Israel] Acquirer: eBay[USA] - Image recognition, visual graphic search and Web content monitoring SaaS Sold to Target: Expertmaker [Sweden] Acquirer: eBay [USA] - Cloud-based AI-enabled search and recommendation engine optimization software Sold to Target: MetaMind [USA] Acquirer: Salesforce [USA] Transaction value: $32.8M - AI-enabled automated image recognition SaaS
  • 63. 63 Horizontal Application Software Market Deal Spotlights: AI Enablement 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x Sold to Target: Crosswise [Israel] Acquirer: Oracle [USA] - Machine-learning based cross-device user identification tracking SaaS Sold to Target: Lingospot [USA] Acquirer: Piksel [USA] - Online video recommendation engine, analytics and metadata extraction SaaS Sold to Sold to Target: Vibrant Data [USA] Acquirer: Slice Technologies [Rakuten] [USA] Transaction Value: $32.8M - Machine learning-enabled data discovery, analysis and visualization SaaS Target: Viv Labs [Norway] Acquirer: Samsung Electronics [South Korea] - Personal assistant speech-recognition software
  • 64. 64 Horizontal Application Software Market Deal Spotlights: Predictive Analytics 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x Target: Predictix [USA] Acquirer: Infor Global Solutions [dba Infor] [USA] Transaction Value: $125M - Image search software to enable online purchases Sold to Target: Preact [USA] Acquirer: Spotify [Sweden] - Big data customer analytics and retention SaaS Sold to
  • 65. 65 Horizontal Application Software Market Deal Spotlight: Predictive Analytics 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x Sold to Target: BeyondCore [USA] Acquirer: Salesforce [USA] Transaction Value: $110M (22x EV/S) - Big data and predictive analytics SaaS - Injects more AI into Salesforce’s offerings
  • 66. 66 2016 Horizontal Megadeals $2.4B $3.3B $1.4B $1.4B $2.1B $2.5B $1.1B $1.5B $1.6B $2.8B $2.8B $3.0B $1.7B $9.3B$1.8B Sold to Target: Demandware [USA] Acquirer: Salesforce [USA] Transaction Value: $2.8B - Spearheads the Salesforce Commerce Cloud division
  • 67. 67 Horizontal Application Software Market Deal Spotlight: Visual Intelligence Systems 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x Sold to Target: Spikenet Technology [France] Acquirer: BrainChip [USA] Transaction Value: $1.5M (3.5x EV/S and 12x EBITDA) - AI-based computer vision software and software development kit - Enables integration of Brainchip’s SNAP technology into Spikenet’s deep learning networks
  • 68. 68 Horizontal Application Software Market Deal Spotlights: SCM 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 16.42 x 15.45 x 16.98 x 17.06 x 17.55 x 19.25 x 18.93 x 18.73 x 18.18 x 18.93 x 17.70 x 18.19 x 18.39 x EV/S 3.54 x 3.32 x 3.29 x 3.58 x 3.49 x 3.45 x 3.57 x 3.52 x 3.70 x 3.83 x 3.75 x 3.46 x 3.47 x Target: Verian Corporation [USA] Acquirer: Basware [Finland] Transaction Value: $36M (3.4x EV/S) - E-procurement, invoice, processing, EDI and purchasing automation SaaS Sold to Target: Appterra [USA] Acquirer: Descartes Systems Group [Canada] Transaction Value: $5.8M - Supply chain relationship management and trading partner collaboration SaaS Sold to
  • 69. 69 Vertical Application Software Market Public Valuation Multiples 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May- 16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x
  • 70. 70 Subsector Sales EBITDA Examples A/E/C 5.32x 21.01x Automotive 4.61x 18.61x Energy & Environment 4.75x 19.20x Financial Services 4.86x 15.92x Government 1.85x 12.34x Healthcare 3.45x 14.77x Real Estate 7.04x 19.81x Vertical Other 4.53x 14.34x Vertical Application Software Valuations
  • 71. 71 Vertical Application Software Market 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May- 16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x Deal Spotlights: Automotive Sold to Target: Itseez [Russia] Acquirer: Intel Corporation [USA] - Open-source computer vision and algorithmic pattern recognition software Sold to Target: SAIPS [Israel] Acquirer: Ford Motor Company [USA] - Algorithm-based software for 3D image and video processing
  • 72. 72 Vertical Application Software Market 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May- 16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x Deal Spotlights: Automotive Sold to Sold to Target: Surround.io [USA] Acquirer: UIEvolution [USA] - Machine learning software to aid computer vision for businesses in the automotive Target: Otto [USA] Acquirer: Uber Technologies [USA] Transaction Value: $700M - Autonomous vehicle hardware and software systems via retrofitting of existing trucks
  • 73. 73 Vertical Application Software Market 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May- 16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x Deal Spotlight: A/E/C Sold to Target: Textura Corporation [USA] Acquirer: Oracle Corporation [USA] Transaction Value: $663M (7.2x EV/S) - Collaboration SaaS for payment management and project pre-qualification for the commercial construction industry - Previously acquired Corum-client Planswift
  • 74. 74 Vertical Application Software Market 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May- 16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x Deal Spotlights: A/E/C Sold to Sold to Sold to Target: Design Data [USA] Acquirer: Nemetschek [Germany] Transaction Value: $46.4M (4.6x EV/S) - Steel modeling and fabrication software and SaaS Target: Mtelligence [USA] Acquirer: AspenTech [USA] Transaction Value: $37.4M - Industrial equipment prescriptive maintenance and related analytics software and SaaS Target: ConstructConnect [USA] Acquirer: Roper Technologies [USA] Transaction Value: $632M - Data management SaaS to the manufacturing and construction industry
  • 75. 75 2016 Vertical Megadeals $1.1B $8.8B $2.7B $1.7B $2.2B $2.4B $3.6B $1.0B $1.1B $2.6B $2.7B $1.2B $3.2B $4.0B $1.0B $1.1B $5.9B $6.9B $8.0B Sold to Target: Press Ganey [USA] Acquirer: EQT [Sweden] Transaction Value: $2.2B - Establishes EQT’s foothold in the US healthcare market
  • 76. 76 Vertical Application Software Market 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 5.00 x 6.00 x 8.00 x 10.00 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May- 16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.85 x 15.88 x 15.93 x 17.11 x 16.70 x 17.21 x 17.12 x 18.38 x 17.27 x 17.64 x 17.16 x 16.30 x 16.76 x EV/S 4.37 x 4.11 x 4.06 x 4.30 x 4.38 x 4.37 x 4.47 x 4.70 x 4.66 x 4.72 x 4.39 x 4.50 x 4.57 x Deal Spotlights: Healthcare Target: Emmi Solutions [USA] Acquirer: Wolters Kluwer Health [USA] Transaction Value: $170M - Patient engagement and analytics SaaS for healthcare providers Target: Healthiest You [USA] Acquirer: Teladoc [USA] Transaction Value: $155.8M (15.6x EV/S) - Tele-health patient engagement and healthcare management mobile application Sold to Sold to
  • 77. 77 IT Services – Developed Markets Public Valuation Multiples 0.40 x 0.50 x 0.60 x 0.70 x 0.80 x 0.90 x 1.00 x 1.10 x 1.20 x 1.30 x 1.40 x 5.00 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 10.82 x 10.33 x 10.14 x 10.35 x 10.40 x 10.69 x 10.21 x 10.68 x 11.08 x 11.13 x 10.90 x 10.89 x 11.14 x EV/S 0.97 x 0.90 x 0.98 x 1.06 x 1.08 x 1.17 x 1.16 x 1.14 x 1.26 x 1.32 x 1.27 x 1.21 x 1.30 x
  • 78. 78 Public Valuation Multiples IT Services – Emerging Markets 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.07 x 15.19 x 13.94 x 14.76 x 14.80 x 17.40 x 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x EV/S 3.20 x 3.05 x 2.98 x 3.14 x 3.15 x 3.13 x 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x
  • 79. 79 Deal Spotlights: Accenture Target Date Target Country Description January UK Financial trading systems integration, systems migration and consulting services January Netherlands CRM systems integration services, with a focus on Salesforce, Apttus, The TAS Group, Zuora and ServiceMax SaaS April Japan Digital marketing services, including digital strategy, content design and development May USA Analytics-based consulting & BPO services Jun Germany Digital marketing and e-commerce optimization services , project management and IT consulting June Israel Cybersecurity phishing, malware and ransomware attack simulation, vulnerability analysis and remediation July Spain Web and mobile application development, and digital signage creation services July Netherlands Mobile development services including UI design, app. dev., usability testing, & system architecture August Australia Security systems integration services, specializing in identity and access management, transaction security, anti-fraud and authentication August UK Software for insurance companies IT Services Market
  • 80. 80 Deal Spotlights: Accenture Target Date Target Country Description September USA IT consulting, BPO, systems and network integration, software development and merchandising software September Italy Salesforce systems integration and Salesforce-based front-office management software suites September USA Workday systems integration & consulting October UK Brand marketing strategy consulting and customer UX application, interfaces and Web design October USA Cybersecurity integration and services November Netherlands GIS systems integrator November Canada IT and managed services November UK Digital and mobile campaign creation services for enterprises in the UK November France Provides technology and management consulting, systems integration and software development December France Managed security services and enterprise infrastructure management IT Services Market
  • 81. 81 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.07 x 15.19 x 13.94 x 14.76 x 14.80 x 17.40 x 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x EV/S 3.20 x 3.05 x 2.98 x 3.14 x 3.15 x 3.13 x 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x IT Services Market Deal Spotlights: Security Services Target: Aquilent [USA] Acquirer: Booz Allen Hamilton [USA] Transaction Value: $250M - Software and Web development and cloud and security enablement services for federal US agencies Sold to Sold to Target: Siege Technologies [USA] Acquirer: Nehemiah Security [USA] - Infosecurity integration services to businesses in the insurance, government, entertainment and IT industries Sold to Target: Advancive [USA] Acquirer: Optiv Security [USA] - Identity and access management (IAM) governance integration services
  • 82. 82 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 15.07 x 15.19 x 13.94 x 14.76 x 14.80 x 17.40 x 15.24 x 15.48 x 15.12 x 14.69 x 12.93 x 13.01 x 13.52 x EV/S 3.20 x 3.05 x 2.98 x 3.14 x 3.15 x 3.13 x 3.12 x 3.43 x 3.09 x 3.15 x 2.91 x 2.77 x 2.70 x IT Services Market Deal Spotlights: IoT business services Target: nfrastructure Technologies [USA] Acquirer: Zones [USA] - Provides IoT systems design, integration, software development and managed services Sold to Sold to Target: Extensys [USA] Acquirer: CompuCom Systems [USA] - IoT business unit which provides Cisco-based IoT systems design, integration and consulting services Sold to Target: Rivetry [USA] Acquirer: Rigado [USA] - IoT product design & development
  • 83. 83 Consumer Application Software Market Public Valuation Multiples 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x
  • 84. 84 Subsector Sales EBITDA Examples Casual Gaming 3.03x 21.24x Core Gaming 2.04x 10.85x Other 1.64x 52.29x Consumer Application Software Valuations
  • 85. 85 Consumer Application Software Market Deal Spotlights: Online Gaming 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x Target: Jagex [UK] Acquirer: Zhongji Holding [China] - Online games for consumers globally - Charges Zhongji for the further acquisitions in the gaming space Sold to
  • 86. 86 2016 Consumer Megadeals $1.5B $2.7B $4.4B $2.3B $8.6B $2.0B Sold to Target: Supercell [Finland] Acquirer: Tencent [China] Transaction Value: $8.5B - Adds chart-topper Clash of Clans to Tencent’s portfolio
  • 87. 87 Consumer Application Software Market Deal Spotlights: Wagering 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x Target: OpenBet [UK] Acquirer: NYX Gaming Group [USA] Transaction Value: $250M - Multi-platform free-to-play mobile online video games for consumers Sold to Target: DEQ Systems [Canada] Acquirer: Scientific Games [USA] Transaction Value: $20.7M (2.9x EV/S) - Casino gaming systems and related integration services for the gambling industry Sold to
  • 88. 88 Consumer Application Software Market Deal Spotlights: Fitness Tracking 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x Target: PlayerTek [Ireland] Acquirer: Catapult Group [Australia] Transaction Value: $2.7M - GPS-based wearables for sports teams and athletes Sold to Target: FitnessKeeper [USA] Acquirer: ASICS [Japan] Transaction Value: $85M - Runners' fitness tracking, run planning and goals monitoring mobile application Target: Withings [France] Acquirer: Nokia [Finland] Transaction Value: $190M - Wearable health and activity trackers Sold to Sold to
  • 89. 89 Consumer Application Software Market Deal Spotlights: Facial Analysis 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x Sold to Target: Masquerade Technologies [Belarus] Acquirer: Facebook [USA] - Real time video selfie animation mobile application Target: FacioMetrics [USA] Acquirer: Facebook [USA] - iOS and Android mobile applications that capture and analyze facial expressions Target: TheEyeTribe.com [Denmark] Acquirer: Facebook [USA] - Sensor-based eye-tracking hardware and software systems Sold to Sold to
  • 90. 90 Consumer Application Software Market Deal Spotlights: Visual Intelligence Systems 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x Target: VOKE [USA] Acquirer: Intel [USA] - Live event virtual reality (VR) platform Target: Surreal [USA] Acquirer: STX [USA] - Immersive short form programming for virtual reality devices Sold to Sold to
  • 91. 91 Consumer Application Software Market Deal Spotlights: Travel 1.00 x 1.20 x 1.40 x 1.60 x 1.80 x 2.00 x 2.20 x 2.40 x 5.00 x 7.00 x 9.00 x 11.00 x 13.00 x 15.00 x 17.00 x 19.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 18.13 x 13.73 x 12.98 x 13.60 x 14.42 x 16.03 x 15.89 x 15.68 x 16.21 x 17.32 x 17.80 x 14.73 x 14.82 x EV/S 2.15 x 1.83 x 1.88 x 1.83 x 1.76 x 2.05 x 1.96 x 2.15 x 2.09 x 2.31 x 2.16 x 2.12 x 2.04 x Target: Trover [USA] Acquirer: Expedia [USA] - Mobile travel photos sharing application and website for consumers Sold to Target: CityMaps [USA] Acquirer: TripAdvisor [USA] - GPS-enabled vector-based map creation mobile application for travelers Sold to
  • 92. 92 Public Valuation Multiples Internet Market 1.50 x 3.50 x 5.50 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x 24.00 x 26.00 x 28.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x
  • 93. 93 Subsector Sales EBITDA Examples Diversified Internet 4.88x 17.67x eCommerce 1.02x 29.82x Social Network 4.57x 20.22x Travel & Leisure 5.75x 19.21x Internet Valuations
  • 94. 94 Internet Market 1.50 x 3.50 x 5.50 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x 24.00 x 26.00 x 28.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x Target: Cruise.co.uk [UK] Acquirer: Bridgepoint Capital [UK] Transaction Value: $69.3M - Online cruise booking website Sold to Sold to Target: Yatra [India] Acquirer: Terrapin 3 Acquisition Corporation [USA] Transaction Value: $218M (3.5x EV/S) - Online travel reservations services Sold to Deal Spotlights: Online Travel Target: Lifealike (Onefinestay) [UK] Acquirer: Accor [France] Transaction Value: $168.5M - Vacation homesharing classifieds website
  • 95. 95 Internet Market 1.50 x 3.50 x 5.50 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x 24.00 x 26.00 x 28.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x Deal Spotlights: Online Ticketing Target: Vivid Seats [USA] Acquirer: Vista Equity Partners [USA] - Event ticket resale website - Partnered with Vista to strengthen the core offerings with the necessary resources Target: Ticketbis [Spain] Acquirer: StubHub (ebay) [USA] Transaction Value: $166M (estimated) - Event ticket resale website - Helps StubHub to expand into over 40 additional markets Sold to Sold to Target: Wantickets RDM [USA] Acquirer: LiveXLive [USA] - Music event ticketing website - Helps LiveXLive’s parent company Loton Corp to enter the music ticketing sector Sold to
  • 96. 96 Internet Market 1.50 x 3.50 x 5.50 x 12.00 x 14.00 x 16.00 x 18.00 x 20.00 x 22.00 x 24.00 x 26.00 x 28.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 25.04 x 20.17 x 21.93 x 23.52 x 23.08 x 22.58 x 23.49 x 23.13 x 20.76 x 22.21 x 20.40 x 19.07 x 18.57 x EV/S 3.83 x 3.60 x 3.76 x 3.75 x 3.60 x 3.50 x 3.71 x 4.00 x 4.54 x 4.76 x 4.32 x 4.11 x 3.81 x Deal Spotlights: Online Sports Target: Racing Post [UK] Acquirer: Exponent Private Equity [UK] - Online horse & dog racing news, analysis and bloodstock data via newspaper, website and mobile app Sold to Sold to Target: Punters.com.au [Australia] Acquirer: News Corp [Australia] - Australia’s largest digital racing publisher - Punters got more marketing support having provided News Corp Australia with website and technology assistance
  • 97. 97 Deal Spotlight: Online Food Delivery Target Acquirer Deal Value Target Country Acquirer Country Description - Germany Germany Leading online food delivery marketplace $200M China China Online and mobile crowd- sourced ordering and delivery services $253.7M UK UK Online food delivery service, searchable directory and rating of restaurants $83.8M Canada UK Online food delivery service and mobile app $100M Russia Russia Online food delivery service Internet Market
  • 98. 98 Infrastructure Software Market Public Valuation Multiples 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x
  • 99. 99 Subsector Sales EBITDA Examples Endpoint 3.67x 13.63x IT Services Management 4.14x 24.83x Network Management 2.36x 9.81x Security 3.27x 16.71x Storage & Hosting 2.68x 11.01x Other 5.32x 14.78x Infrastructure Software Market
  • 100. 100 Infrastructure Software Market Deal Spotlights: Security 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: Invotas [USA] Acquirer: FireEye [USA] Transaction Value: $20M - Automated threat response software and SaaS Sold to Target: iSIGHT Partners [USA] Acquirer: FireEye [USA] Transaction Value: $200M (5x EV/S) - Сybersecurity threat intelligence, detection and management SaaS Sold to
  • 101. 101 Infrastructure Software Market Deal Spotlight: Security 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Sold to Target: Return Path [USA] Acquirer: Proofpoint [USA] Transaction Value: $18M - Standards-based DMARC authentication and proprietary sender-analysis SaaS - Enhances Proofpoint’s suite of email protection solutions
  • 102. 102 2016 Infrastructure Megadeals $1.1B $39.1B $1.3B $1.6B $1.4B $1.8B $2.0B $2.2B $2.2B $4.0B $5.5B$4.7B $1.5B $8.8BNon-Core Software Assets $3.9B $32.4B $1.8B Sold to Target: Blue Coat Systems [USA] Acquirer: Symantec Corporation [USA] Transaction Value: $4.7B (7.8x EV/S) - Builds on Symantec’s PC, e-mail and data center products
  • 103. 103 Infrastructure Software Market Deal Spotlights: Visual Intelligence Systems 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: AQSense [Spain] Acquirer: Cognex [USA] Transaction Value: $2.5M - Web-based 3D machine vision software Sold to Target: EnShape [Germany] Acquirer: Cognex [USA] Transaction Value: $7.6M - Advanced 3D vision sensors and related software Sold to
  • 104. 104 Infrastructure Software Market Deal Spotlights: AI Enablement 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: Turi [USA] Acquirer: Apple [USA] Transaction Value: $200M - Open source, big data, machine-learning predictive analysis software Sold to Sold to Target: Emotient [USA] Acquirer: Apple [USA] - Facial recognition and related expression analytics SaaS Target: Tuplejump [India] Acquirer: Apple [USA] - Data management solutions, including a FILO open source project Sold to
  • 105. 105 Infrastructure Software Market Deal Spotlights: Internet of Things 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: PLAT.ONE [Italy] Acquirer: SAP [USA] - Cloud-based enterprise-grade IoT and M2M provisioning software Sold to Target: Solair [Italy] Acquirer: Microsoft [USA] - IoT platform-as-a-service for machine-to-machine connectivity creating Sold to
  • 106. 106 Infrastructure Software Market Deal Spotlights: Internet of Things 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: Bluvision [USA] Acquirer: HID Global [USA] - Bluetooth-enabled low energy (BLE) sensor systems, including beacons and tracking SaaS Sold to Target: Dojo-Labs [Israel] Acquirer: BullGuard [UK] - IoT security devices and related management software Sold to
  • 107. 107 Infrastructure Software Market Deal Spotlights: Cloud Management 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: ITapp [USA] Acquirer: ServiceNow [USA] Transaction Value: $15M (7.5x EV/S) - Hybrid cloud management software Sold to Target: CliQr [USA] Acquirer: Cisco [USA] Transaction Value: $260M - Hybrid cloud application management software Sold to
  • 108. 108 Infrastructure Software Market Deal Spotlights: Cloud Management 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Target: 3Scale [Spain] Acquirer: Red Hat [USA] Transaction Value: $29M (7.3x EV/S) - API Management platform gives the tools to take control of API Sold to Target: Apigee [USA] Acquirer: Google [USA] Transaction Value: $625M (6.5x EV/S) - API management SaaS for businesses globally Sold to
  • 109. 109 IT Services Market Deal Spotlight: IT Research Services 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 4.00 x 4.50 x 6.00 x 7.00 x 8.00 x 9.00 x 10.00 x 11.00 x 12.00 x 13.00 x 14.00 x 15.00 x 16.00 x EV/SEV/EBITDA Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 EV/EBITDA 13.78 x 11.88 x 13.42 x 13.68 x 13.71 x 13.62 x 13.45 x 13.78 x 14.03 x 13.89 x 15.38 x 15.17 x 15.20 x EV/S 3.96 x 3.34 x 3.36 x 3.37 x 3.31 x 3.30 x 3.19 x 3.46 x 3.36 x 3.45 x 3.20 x 3.42 x 3.32 x Sold to Target: CEB [USA] Acquirer: Gartner [USA] Transaction Value: $2.6B (3.5x EV/S and 18.5x EBITDA) - Business management and IT consulting services - Creates a research and advisory powerhouse for all major enterprise functions
  • 110. 110 Corum Research Report Elon Gasper EVP, Research Amber Stoner Director of Research Yasmin Khodamoradi Analyst Amanda Tallman Senior Analyst Thomas Wright Analyst
  • 111. 111 Tech Leader Panel – The Year Ahead Karl Popp @karl_popp SAP Peter Coffee @petercoffee Salesforce Henry Hu @HenryMHu IBM Reese Jones @Reese_Jones Singularity University Join the conversation! @CorumGroup #FORECAST2017
  • 112. 112 Special Guest Peter Coffee is VP for Strategic Research at salesforce.com inc. He has been with the company for seven years, following nineteen years as a columnist and editor with the industry publications PC Tech Journal, PC Week and eWEEK. He works with IT managers and application developers to build a global community on the Salesforce1 cloud platform, combining the Force.com, Heroku1 and ExactTarget Fuel service portfolios. Peter holds an engineering degree from MIT and an MBA from Pepperdine University, with subsequent faculty appointments in IT management at Pepperdine; expert-systems programming at UCLA; and business analytics at Chapman College. He is the author of two books, “How To Program Java” and “Peter Coffee Teaches PCs”. He is a winner of the Neal Award for excellence in business journalism and the McGan “Silver Antenna” Award for service to amateur radio. In recent years, Peter has worked with customers and partners throughout the Americas and in Australia, India and EU countries as well as lecturing at MIT, Harvard, Stanford, the CalTech/MIT Enterprise Forum and UCLA. Peter Coffee Salesforce VP for Strategic Research
  • 113. 113 Special Guest Dr. Karl Michael Popp is senior director of mergers and acquisitions in the corporate development team at SAP AG, responsible for holistic analysis of acquisition opportunities and post merger integration. With more than 20 years of experience in the software business, he evaluated and successfully integrated many acquired companies into SAP. In addition, he continually improves the M&A process for SAP. Before working on M&A, Karl has managed several dozen strategic OEM and Resell partnerships for SAP NetWeaver, one of SAP´s technology platforms. Karl has published several books on the software business, including “Profit from Software Ecosystems” and the recently published book “Mergers and Acquisitions in the Software Industry – Foundations of Due Diligence”. Dr. Karl Popp SAP Senior Director, Corp. Dev.
  • 114. 114 Special Guest Inventor, venture investor, and business strategist Reese Jones has engaged in over a dozen companies' start up, financing, development, IPO and acquisitions. They include Netopia, where he served as CEO until its acquisition by Motorola in 2006, after having founded it as Farallon Computing, then taken it public in 1996. Other notable technology endeavors in which he's applied his leadership include Convergence, Mediabolic, and Jobvite, as well as Venture Partnerships at Accel, August, and TelesoftVC. He is a Fellow in Innovation and Entrepreneurship at UC Berkeley, where as a grad student in the 1980s he started and ran BMUG, which became the largest nonprofit computer user group of its kind. Reese is an Associate Founder and active Trustee of Singularity University. His current interests include network theory, human/Internet interfaces, phones as synapses, and Internet evolution. Reese Jones Singularity University Associate Founder
  • 115. 115 Special Guest Henry Hu is a IBM Corporate Development Executive for M&A Strategy, Innovation & Investment. Henry leads M&A strategy development for IoT, evaluates inbound acquisition opportunities for IoT, Analytics, Watson and Health businesses. He provides corporate support to IBM's tech accelerators and incubator, and acts as liaison with several boutique investment banks. Prior to his current role, Henry was CFO of IBM Systems Strategic Imperatives for Finance and Transformation. His professional background in finance spans IBM, A.T. Kearney and Ford Motor Company. He has been recognized by Ascend, a Pan-Asian professional organization, as a High-Impact Leader for his work in promoting Pan-Asian leadership in business and the community. Henry holds a B.S. in International Trade and Computer Science from Shanghai Jiao Tong University, an M.S. in Engineering Management from Stanford, and an Executive MBA from Columbia University. Henry Hu IBM Corporate Development Executive
  • 116. 116 Tech Leader Panel – The Year Ahead Karl Popp @karl_popp SAP Peter Coffee @petercoffee Salesforce Henry Hu @HenryMHu IBM Reese Jones @Reese_Jones Singularity University Join the conversation! @CorumGroup #FORECAST2017
  • 117. 117 Upcoming Conference Schedule Selling Up Selling Out (SUSO) - Ready to go to market? During this half-day workshop, learn to prepare, position, research, value, negotiate, and execute due diligence for maximum price and structure. This is the most attended Tech M&A event ever – participants have done over $1 trillion in transaction value. Merge Briefing (MB) - The Merge Briefing is a 90-minute executive briefing providing a current M&A market update (trends, valuations, etc.), as well as a brief overview of the Tech M&A process: “8 Steps To An Optimal Outcome.” www.CorumGroup.com/Events Jan. 31: Indianapolis – MB Feb. 1: Dayton – MB Feb. 7: Las Vegas – MB Feb. 7: Seattle – SUSO Feb. 16: Houston – SUSO Mar. 7: Kansas City – MB Mar. 8: St. Louis – MB …With more events in: Portland London Sacramento Los Angeles Reston Dublin Costa Mesa Miami