GCA: Asset Maintenamce & Repair · 2020. 8. 26. · Sources: Market Research, Company Press...

SECTOR COVERAGE REPORT:

Asset Maintenance & Repair Software

VOL 1: AUGUST 2020

21. Includes $890m raised by Samsara. Excludes $400m raised by Houzz and $3.4b majority recap of IFS by EQT and TA Associates2. Based on deals with known transaction values

INTRODUCTION

GLEN KRUGERManaging DirectorVertical Software

E: [email protected]: 212.999.7082

KEVIN WALSHManaging DirectorVertical Software


BLAKE CHRISTENSENDirectorIndustrial Technology


CHRIS GOUGHManaging DirectorVertical Software


GCA is launching coverage of “Asset Maintenance & Repair” (AM&R) software, a thematic approach to identifying and analyzing enterprise software companies among 22 vertical markets – from Auto Repair to Utilities – in which complex equipment maintenance and repair is a core system function.

Our targeted coverage is based on three dimensions:

1. Market verticals dependent on complex equipment maintenance & repair to function, requiring specialist technician skill & training, labor scheduling and/or routing, and large BOM/parts catalogs necessitating inventory management of long tail SKU items

2. Software buyer work environment, in which assets are either transported “inbound” to a repair facility or repaired in the field (repair technicians are dispatched “outbound” to the asset)

3. Customer focus, either Commercial- or Consumer-focused

Since 2017, more than $2.9b1 has been invested into at least 100 AM&R software businesses, whereas 200+ have been acquired by 150 buyers for an aggregate transaction value of $10.7b ($250m2 average transaction value). Common investment themes have included:

» High revenue retention among entrenched, mission-critical systems

» Strategic shift to focus on profitability and/or operational efficiency over production volume

» Rapid customer adoption of the automation of manual processes (digital transformation) in labor-intensive service markets

» Phase 2 of early automation adopters now embracing further productivity gains through AI optimization

» An aging workforce – compounded by a skilled-labor gap – driving demand for knowledge retention systems

In this issue we highlight the Aviation vertical, consisting of ~377,500 Civil Aviation (i.e., Non-military) aircraft worldwide. Specific market observations include:

» A highly regulated market in which equipment inspection, maintenance and safety is paramount

» Productive asset life that often exceeds 30 years with multiple owners, requiring detailed maintenance records

» A parts SCM opportunity as supply shifts to the online B2B channel, dominated by U.S. vendors, and increasing transaction volumes that are expected to follow the proliferation of integrations among maintenance software platforms and online parts marketplaces.

In the next issue we will cover the Oil & Gas vertical and equipment leveraged throughout a value chain known for its extreme and chemically corrosive operating conditions.

As GCA continues to execute M&A deals in this market (e.g., the recent sale of Flightdocs to ATP) we invite you to contact us individually to discuss past transactions, future opportunities or general feedback.

Best,Glen, Kevin, Chris & Blake

3

I. GCA COVERAGE

II. FINANCIAL MARKET UPDATE

III. MARKET FOCUS: GENERAL AVIATION

IV. OTHER VERTICAL MARKETS

V. APPENDIX

4San Francisco | New York | Birmingham | Frankfurt | Fukuoka | Ho Chi Minh City | Kyoto | Lausanne | Leeds | London | Manchester | Milan | Mumbai | Munich | NagoyaNew Delhi | Osaka | Paris | Shanghai | Singapore | Stockhom | Taipei | Tel Aviv | Tokyo | Zurich

GCA is a leading global M&A advisor across numerous industry sectors with a strong focus in technology

OUR GLOBAL INVESTMENT BANKING PLATFORM

NORTH AMERICA

– Strong relationships with high-growth public and private companies

– M&A, capital markets, and private funds advisory services

– Technology-focused, including software, industrial tech, mobility, and digital media

ASIA

– Strong relationships with global Japanese conglomerates and trade buyers

– Full-scope M&A advisory services, including strategic planning, due diligence, deal execution, and PMI

– Focus on client needs in all sectors, including industrials, consumer, technology, and healthcare

EUROPE

– Strong relationships with leading corporates, private mid-market, and PE firms

– M&A and debt advisory services

– Leading software M&A advisor in Europe, also a leading advisor in the wider technology, consumer and retail, industrials, business services, and healthcare sectors

25 global officesGlobal reach in the key M&A markets across North America, Europe and Asia

500+ professionals Highly experienced investment banking professionals in all regions

500+ dealsAnnounced or closed in last 3 years

5

RECENT RELEVANT GLOBAL TRANSACTIONS

AviationGCA advised the seller

Sold to

Auto RepairGCA advised the buyer

Acquired

AutomotiveGCA advised the investor

Investment in

Real EstateGCA advised the seller

Sold to

Oil & GasGCA advised the target

Investment from

Commercial Food Equip.GCA advised the seller

Sold to

Oil & GasGCA advised the seller

Sold to

Connected HomeGCA advised the buyer

Acquired

Multi-verticalGCA advised the seller

Sold to

Multi-verticalGCA advised the target

Investment from


Sold to

Auto RepairGCA advised the seller

Sold


Sold to

Multi-verticalGCA advised the seller

Sold to

Project-based industriesGCA advised the target

Investment from


Sold to

AutomotiveGCA advised the seller

Sold to


Sold to

Oil & GasGCA advised the buyers

A portfolio asset of

Oil & GasGCA advised the investor

Investment in


Sold to

Multi-verticalGCA advised the target

Investment from

Real EstateGCA advised the buyer

Acquired

MarineGCA advised the seller

Acquired by

Drone / IoTGCA advised the seller

Sold to

Real EstateWe advised the seller

Sold to

toHome Gateway

Platform Division

acquired

HVAC, Plumbing & Elec.GCA advised the seller

Acquired by


Sold to

6

INBOUND(Assets are transported “inbound” to a repair facility)

OUTBOUND(Repair technicians are dispatched “outbound” to an asset)

CO

NSU

MER

& R

ESID

ENTI

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CO

MM

ERC

IAL

& IN

DU

STR

IAL

MA

INTE

NA

NC

E P

RO

VID

ERS • Third-party Maintenance and Repair Facilities

• Asset Owners and/or Fleet Operators

• Facilities Managers

• Third-party Service Providers• Equipment OEMs

Note:Consumer = individual; Residential = personal dwellings; Commercial = business trade; Industrial = manufacturing/production

OUR ASSET MAINTENANCE & REPAIR COVERAGE VERTICALS

Auto Repair Home Medical Equipment

Power Sports Recreation Vehicles

Aviation Commercial Trucking

Heavy Equipment

Electric Motors, Pumps & Generators

Security & Alarm

Utilities

Food Equipment

Manufacturing Equipment

Oil & GasEquipment

Marine

Outdoor Power Equipment

Facilities Equipment & Building Services

Pest Landscaping & Lawn Care

Locksmiths

Appliance Install & Repair

HVAC, Plumbing& Electrical

Facilities Management

ConstructionEquipment

Marine

7

INBOUND OUTBOUND

CO

NSU

MER

& R

ESID

ENTI

AL

CO

MM

ERC

IAL

& IN

DU

STR

IAL

Sample representation of coverage landscape; GCA currently tracks 500+ Asset Maintenance & Repair software companiesMRO = Maintenance, Repair & Overhaul (work in shop); FSM = Field Service Management (work on site)Consumer = individual; Residential = personal dwellings; Commercial = trade; Industrial = manufacturing

SELCTED SOFTWARE VENDOR LANDSCAPE

8

I. GCA COVERAGE




V. APPENDIX

91. Acquired by Accruent2. Includes SedonaOffice, SedonaOne, and AlarmBiller3. Acquired by WorkWave

M&A: MOST ACTIVE STRATEGIC ACQUIRORS (SINCE 2017)

ACQUIROR# ACQUISITIONS

(SINCE 2017)TARGETS

32 See following page for detail

11(includes Accruent

acquisitions)

Portfolio Asset of: Providence Equity

11

11

Portfolio Asset of: Apax Partners8

Portfolio Asset of: Genstar Capital8

8

Portfolio Asset of: EQT Partners7

(2017) (2017) (2017) (2017) (2019) (2019)(2018)3

(2017) (2017) (2018) (2018) (2019) (2019) (2020) (2020)

(2017)

(2017)1

(2017)1

(2018)1

(2018)1

(2018)1

(2018)

(2018)

(2019) (2019)

(2019)

(2017)

(2017)

(2018)

(2018)

(2018)

(2018)

(2018)

(2018)

(2019)

(2017)

(2017)

(2017)

(2017)

(2017)

(2017)

(2018)

(2018)

(2018)

(2018)

(2017) (2017) (2018) (2018) (2018) (2018) (2019) (2020)

(2020)

(2020)

(2017) (2018) (2018) (2018) (2018) (2019)(2017)

+

(2020)

(2017)

10

M&A: CONSTELLATION SOFTWARE – 30+ AM&R-RELATED TRANSACTIONS (SINCE 2017)

Jan 2020

May 2019

Jan 2019

Jan 2019

Jul 2018

Jul 2018

Mar 2018

May 2017

Mar 2017

Jan 2017

Feb 2020

Nov 2019

Jan 2018

Dec 2019

Nov 2019

Oct 2019

Feb 2019

Jan 2018

Mar 2020

Feb 2020

Feb 2020

Feb 2020

Oct 2018

Jan 2018

Jan 2018

Jul 2017

Jan 2020

Apr 2017

Aug 2020

Oct 2019

Aug 2019

Jan 2019

Dec 2018

Apr 2017

Key Vertical Focus:

• Agri-Food• Bio Sciences• Cultural Collections

Management• Education• Justice• Marine• People

Transportation• Retail

• Asset Mgmt. & Logistics

• Communication & Media

• Drinks• Financial Services• Library

Management• Non-Profit• Rental

Management

Key Vertical Focus:

• Utilities• Public Safety &

Justice• Education

• Healthcare• Local & County

Government• Property

ManagementKey Vertical Focus:

• Hospitality• Clubs & Resorts• Spa & Fitness

• Payments• Moving &

Storage

Key Vertical Focus:

• Mining / Oil & Gas / Aerospace

• Manufacturing & Supply Chain

• Public Housing

• Public Housing• Financial

Services• Travel• Retail &

Dealerships

Key Vertical Focus:

• Homebuilders• Dealerships• Real Estate

Brokers & Agents

• Pulp & Paper• Leasing &

Financing• Pharmaceutical

manufacturing

Key Vertical Focus:

• Government• Real Estate• Healthcare• Automotive

• Finance• Retail• Legal

11Sources: Market Research, Company Press Releases1. Porch acquired Proptech Acquisition Corp (SPAC) in a reverse merger. Aggregate transaction consideration was $471.5m.

indicates GCA participation in transaction

M&A: RECENT STRATEGIC TRANSACTIONS

ANNOUNCEDATE

BUYER TARGETTXN. VALUE

($m)

LTM REV. MULTIPLE

VERTICAL MARKET(S)

CAPITAL SOURCE TARGET LOCATION

Aug 3, 2020 n/a n/a Marine TSX: CSU Seattle, WA

Jul 31, 20201

$471.51

n/a HVAC NAS: PTAC1

Seattle, WA

Jul 13, 2020 n/a n/a Auto Repair Genstar Capital Lenexa, KS

Jun 18, 2020 Conf. Conf. AviationParkerGale, Accel-KKR

Bonita Springs, FL

May 26, 2020 n/a n/a HVAC (Residential)

Battery Ventures, Bessemer Ventures, Dragoneer, Index Ventures, ICONIQ, T. Rowe

Price

Buffalo, NY

May 20, 2020 n/a n/a HVAC (Residential)Providence Equity,

Debt (various providers)

Torrance, CA

May 19, 2020 $35.0 n/aManufacturing +

Oil & GasGenstar Capital Hamilton, ON

May 11, 2020 n/a n/aConstruction +

HVACApax Partners Somerville, MA

Apr 22, 2020 n/a n/aFacilities (Inbound)

+ Oil & GasGenstar Capital Somerville, MA

Apr 14, 2020 n/a n/aFacilities

(Outbound)Accel-KKR Louisville, KY

12Sources: Market Research, Company Press Releases* GCA Proprietary Insight


M&A: RECENT STRATEGIC TRANSACTIONS (CONT.)

ANNOUNCEDATE


($m)

LTM REV. MULTIPLE

VERTICAL MARKET(S)

CAPITAL SOURCE TARGET LOCATION

Mar 25, 2020 n/a n/aTruck + Marine +

Facilities (Inbound)Clearlake Capital Melbourne, AUS

Mar 17, 2020 n/a n/a Marine NYSE: HZO Ft. Lauderdale, FL

Mar 9, 2020 Conf. Conf. Auto Repair XTRA: ALV Langenfeld, DEU

Feb 28, 2020 n/a n/a Facilities (Inbound) n/a (Private) Raleigh, NC

Feb 10, 2020 n/a n/a Manufacturing TSX: CSU Oakville, ON

Feb 6, 2020 n/a n/a Manufacturing TSX: CSU Jersey City, NJ

Jan 27, 2020 $8.1 6.7Facilities

(Outbound)LSE: HLMA Toowong, AUS

Jan 22, 2020 n/a n/aFacilities

(Outbound) + Pest + Landscaping

Bregal Sagemount Chicago, IL

Jan 10, 2020 ~$15.0* ~6.0*Facilities

(Outbound)K1 Investment Management

Las Vegas, NV

Jan 9, 2020 $201.1 n/aTruck + Aviation +

MarineNAS: TRMB Maynard, MA

13Platform deals only; does not reflect add-on acquisitions financed by sponsors on behalf of portfolio companies (see pages 9 – 12)1. Minority investment with plans to fund future acquisitions.

M&A: MOST ACTIVE FINANCIAL SPONSOR ACQUIRORS (SINCE 2017)

SPONSOR# ACQUISITIONS

(SINCE 2017)TARGETS

7

4

4

4

4

3

(2018)

(2018)

(2018)

(2019) (2020)

(2020)(2019)

(2017) (2017) (2018) (2020)

(2017) (2018) (2019) (2019)

(2018) (2018) (2018) (2019)

(2018) (2019) (2019)

(2018) (2019) (2020) (2020)1


M&A: RECENT SPONSOR PLATFORM TRANSACTIONS

ANNOUNCEDATE


($m)

LTM REV. MULTIPLE

VERTICAL MARKET(S) TARGET LOCATION

Aug 4, 2020 $270-300* n/a HVAC + Construction Strongsville, OH

Aug 4, 2020 $30.0 n/aHVAC + Facilities

(Outbound)Durham, NC

May 20, 2020

n/a n/a Auto Repair Odessa, FL

Apr 24, 2020 n/a n/aFacilities (Outbound) +

HVAC/R (Outbound)Paso Robles, CA

Mar 31, 2020 $450* 7.5* Construction Birmingham, AL

Mar 6, 2020 n/a n/a HVAC (Outbound) Goch, DEU

Jan 29, 2020 n/a n/aTruck + Heavy Equipment + HVAC + Landscaping +

Auto RepairArgyle, TX

Jan 27, 2020 n/a n/a Pest McKinney, TX

Dec 5, 2019 n/a n/aConstruction + Truck +

PestCalifornia, MD

Sep 12, 2019 n/a n/a Aviation Tiptree, GBR



M&A: RECENT SPONSOR PLATFORM TRANSACTIONS (CONT.)

ANNOUNCEDATE


($m)

LTM REV. MULTIPLE

VERTICAL MARKET(S) TARGET LOCATION

Sep 11, 2019 n/a n/aMulti-Vertical (Outbound)

Bayside, WI

Sep 5, 2019 Conf. Conf. Auto RepairSaint-Pierre-des-Corps,

FRA

Sep 5, 2019 n/a n/a Facilities (Outbound) Trondheim, NOR

Sep 3, 2019 $80.0* 6.2*Facilities + Aviation +

Truck + ManufacturingSan Diego, CA

Aug 22, 2019 Conf. Conf.Commercial Food

Equipment + HVACWest Dundee, IL

Aug 1, 2019 n/a n/a Auto Repair Richfield, OH

Jul 23, 2019 n/a n/a Facilities (Inbound) Houston, TX

May 31, 2019 n/a n/a Oil & Gas Columbus, OH

May 30, 2019 n/a n/aManufacturing +

Oil & GasRaleigh, NC

May 13, 2019

n/a n/a Marine Horten, NOR

16

FINANCINGS: MOST ACTIVE VENTURE & GROWTH EQUITY CAPITAL (SINCE 2017)

INVESTOR# INVESTMENTS

(SINCE 2017)TARGETS

6

6

5

5

4

4

4

3

3

3

3

(2017) (2018) (2018, 2020) (2019) (2020) (2020)

(2017, 2018, 2019) (2017) (2017) (2017) (2018) (2019)

(2017, 2018, 2019, 2020) (2018) (2019) (2019) (2019)

(2017, 2018, 2020) (2017, 2018 x2, 2020) (2018)

(2017, 2019) (2017) (2018) (2018)

(2018)(2017) (2020)(2019)

(2017) (2018) (2019) (2019)

(2017, 2018, 2020) (2018) (2018 x2)

(2018 x2)(2017) (2020)

(2018) (2018) (2020)

(2017) (2018) (2020) (2020) (2020)

17Sources: Market Research, Company Press Releases1. As reported by Pitchbook


FINANCINGS: RECENT VENTURE OR GROWTH EQUITY TRANSACTIONS

ANNOUNCEDATE

TARGET INVESTORSTXN. VALUE

($m)POST-$ VALUE

($m)

PRE-$ REV MULTIPLE

VERTICAL(S) TARGET LOCATION

Aug 13, 2020New: Shasta VenturesExisting: The Riverside Company $12.5 n/a n/a

Facilities (Inbound) + Construction

San Francisco, CA

Aug 10, 2020New: Resolve Growth PartnersExisting: n/a $8.0 n/a n/a

Multi-Vertical (Outbound)

Birmingham, AL

Jul 14, 2020New: TA AssociatesExisting: EQT Partners n/a $3,419.2 4.3

Manufacturing + Oil & Gas + Aviation

+ Marine + HVACLinköping, SWE

Jun 24, 2020New: Canada Business Growth Fund, Export Development Canada, PenderFund Capital managementExisting: BDC Capital, Emerald Technology Ventures

$24.0 n/a n/aManufacturing +

Oil & Gas + Aviation + Automotive

Winnipeg, MB

Jun 18, 2020New: Accel-KKRExisting: ParkerGale Conf. Conf. Conf. Aviation Brisbane, CA

Jun 16, 2020

New: Sozo Ventures, Alpha Intelligence, Hella Ventures, Micron Ventures, Presidio Ventures, Toyota AI VenturesExisting: Andreessen Horowitz, Benhamou Global, Emergence Capital

$25.0 $66.5 n/a Manufacturing Mountain View, CA

Jun 16, 2020New: Accel-KKRExisting: n/a n/a n/a n/a

Truck + Auto Repair + Manufacturing

Union City, CA

May 19, 2020New: Serent CapitalExisting: n/a n/a n/a n/a Landscaping Markham, ON

May 12, 2020New: Insight PartnersExisting: Battery Ventures, Emergence Capital Partners, FundersClub, Mucker Capital, Y Combinator

$36.0 $295.0 n/a Facilities (Inbound) Los Angeles, CA

Apr 23, 2020New: UndisclosedExisting: Undisclosed $73.8 $2,250.0 n/a

HVAC + Food Equipment

Glendale, CA

18Sources: Market Research, Company Press Releases1. As reported by Pitchbook


FINANCINGS: RECENT VENTURE OR GROWTH EQUITY TRANSACTIONS (CONT.)

ANNOUNCEDATE

TARGET INVESTORSTXN. VALUE

($m)POST-$ VALUE

($m)

PRE-$ REV MULTIPLE

VERTICAL(S) TARGET LOCATION

April 16, 2020New: Autodesk (NAS: ADSK)Existing: n/a n/a n/a n/a

Facilities (Inbound) + Oil & Gas + Truck

+ AviationAustin, TX

Apr 14, 2020New: Five Elms CapitalExisting: CreativeCo Capital $6.0 n/a n/a Landscaping Atlanta, GA

Apr 2, 2020New: EBD InvestmentsExisting: n/a $57.4

1$161.8

1Conf.

Facilities (Inbound) + Oil & Gas +

Aviation

Schwerzenbach, CHE

Mar 3, 2020New: M33 GrowthExisting: n/a $20.0 $38.0 n/a

Manufacturing + Heavy Equipment + Auto Repair + Truck

Temple Terrace, FL

Feb 24, 2020New: n/aExisting: Salesforce Ventures, Silver Lake $80.0 n/a n/a

Manufacturing + Construction +

Oil & Gas + AviationPleasanton, CA

Feb 21, 2020New: Georgian PartnersExisting: Ignition Partners, Insight Partners $25.0 $235.0 n/a

Auto Repair + Facilities (Outbound)

London, GBR

Feb 20, 2020New: Elev8 VenturesExisting: Twenty Seven Ventures $1.7 $15.7 n/a Truck Memphis, TN

Jan 17, 2020New: Insight PartnersExisting: Angular Ventures, Lightspeed Venture Partners, Silvertech Ventures, World Trade Ventures

$30.0 $125.0 n/aFood Equipment +

Multi-VerticalNew York, NY

Jan 13, 2020New: Accel-KKRExisting: n/a $28.0 n/a n/a

Construction + Manufacturing +

Facilities

New South Wales, AUS

Jan 7, 2020New: UndisclosedExisting: Undisclosed $20.6 $345.6 5.7 HVAC (Residential) Seattle, WA

19

PUBLIC COMPARABLE COMPANIES: SPECIALTY ERP

17.2x

14.2x

12.4x 12.0x

9.7x 9.3x

6.6x 6.3x 6.2x

4.6x 4.1x 4.0x

16.0x

11.5x 11.8x 11.3x 10.2x

8.9x

5.9x 5.6x 6.3x

4.6x 4.1x 4.0x

-10%

0%

10%

20%

30%

40%

50%

60%

70%

0.0x

10.0x

20.0x

KXS AZPN GWRE TYL MANH ROP TSX:CSU RP PRO TRMB CDK BLKB

EV/LTM REVENUE

EV/NTM REVENUE

LTM REV GROWTH %

NTM REV GROWTH %

TRADING MULTIPLES KXS AZPN GWRE TYL MANH ROP TSX:CSU RP PRO TRMB CDK BLKB MEDIAN

EV/LTM Revenue 17.2x 14.2x 12.4x 12.0x 9.7x 9.3x 6.6x 6.3x 6.2x 4.6x 4.1x 4.0x 7.9x

EV/NTM Revenue 16.0x 11.5x 11.8x 11.3x 10.2x 8.9x 5.9x 5.6x 6.3x 4.6x 4.1x 4.0x 7.6x

EV/LTM EBITDA NM 32.4x NM NM 49.2x 26.2x 37.9x 37.4x NM 23.1x 12.2x 30.8x 31.6x

EV/NTM EBITDA NM 20.4x NM 39.6x 41.5x 24.8x 20.9x 20.5x NM 20.8x 10.9x 16.7x 20.8x

OPERATING STATS

Recurring Revenue % 79.8% 34.3% 68.3% 72.8% 37.1% 49.5% 70.9% 97.0% 84.4% 21.0% 79.9% 91.6% 71.8%

LTM Rev. Growth % 33.5% (1.4%) (1.8%) 11.2% 2.6% 1.7% 13.7% 15.3% 17.4% (3.2%) 2.4% 4.9% 3.7%

NTM Rev. Growth % 7.1% 23.8% 5.7% 6.1% (4.5%) 4.0% 11.4% 12.8% (2.4%) (0.4%) 0.2% (0.7%) 4.8%

LTM Gross Margin % 72.4% 89.6% 52.9% 48.0% 53.0% 64.1% 37.2% 61.0% 58.0% 58.2% 50.7% 53.3% 55.6%

LTM EBITDA Margin % 22.0% 43.8% (0.7%) 18.8% 19.8% 35.5% 17.4% 16.8% (19.0%) 20.0% 33.8% 12.9% 19.3%

FINANCIAL DATA

Mkt Cap. ($m) $3,981 $8,198 $9,390 $13,714 $5,984 $46,174 $24,241 $6,034 $1,680 $12,718 $5,541 $3,052 $7,116

LTM Net Debt ($m) ($246) $180 ($607) ($383) ($89) $3,996 $137 $692 ($75) $1,748 $2,521 $569 $158

EV /

REV

ENU

E M

ULT

IPLE R

EVEN

UE G

RO

WTH

%

Source: Capital IQMarket data, including LTM and NTM Revenues, as of market close, August 17, 2020

20

I. GCA COVERAGE




V. APPENDIX

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RECENT M&A TRANSACTIONS

Date Acquiror Target EV ($m) EV/LTM Rev.

Jun 2020 Conf. Conf.

Nov 2019 n/a n/a

Sep 2019 n/a n/a

LEADING MAINTENACE & REPAIR SOFTWARE VENDORS

Company HQ / Founded CEO Total Cap. ($m)2

Post-$ Val. ($m)3

Brisbane, CA

1973Rick Noble Acq. by ParkerGale Conf.

Merrimack, NH

1968Ken Gray Acq. by Hearst $2,000.0

Linköping, Sweden

1983Darren Roos

Acq. by EQT Partners

$1,658.2

Chennai, India

1992

Virender Aggarwal

$44.6 $60.0

Summit, NJ

2002Bijoy Mechery n/a n/a

Basel, Switzerland

1989

Ronald Schäuffele

Subsidiary of Lufthansa

n/a

Montreal, QC

2013

Scott Henderson

n/a n/a

Coconut Grove, FL

1997Jose Almeida n/a n/a

RECENT FINANCING TRANSACTIONS

Date Target Investors Amount ($m) Post-$ Val. ($m)

Feb 2020 $80.0 n/a

Sep 2019 $2.5 $12.5

Nov 2018 $70.0 $420

Oct 2018 $5.0 n/a

Sources: Market Research, Company Press Releases, GCA Proprietary Research1. Global Fleet & MRO Market Forecast Commentary (2019 - 2029); Oliver Wyman2. Total capitalization: total capital raised or market capitalization3. Post-money valuation of latest financing/buyout or enterprise value

AVIATION: MAINTENANCE & REPAIR SOFTWARE MARKET OVERVIEW

MARKET OBSERVATIONS

• Aircraft assets employed in a commercial context (classed as Civil Aviation or Non-military) total ~380,000 globally, of which the overwhelming majority are smaller aircraft

• Frequent maintenance & repair ensures regular, predictable and safe use and compliance with aviation industry regulations

• Asset complexity, stringent safety regulations and large parts catalogs necessitate software tracking of all maintenance activities

TOTAL ADDRESSIBLE MARKET

# Aircraft:

377.5kWorldwide1

Total MRO Spend:

$81.9bWorldwide1

KEY SOFTWARE EVALUATION CRITERIA

• Target Market(s): Aircraft are maintained & repaired either by owner/operators (CAMO) or third-parties (MRO); CAMO software is typically sold to a department within a larger organization whereas MRO software likely forms the ERP backbone of dedicated repair organizations

• Revenue Models: Usage-based fees (per aircraft or technician), data access fees (OEM manuals, common issues registry, etc.), or variable rate (e.g., parts marketplaces)

• Customer Churn: Aircraft may change ownership several times during a useful life of up to 40 years, “parted out” or sold for scrap at end of life; this market feature drives systemic churn among software vendors

• Market Tiers: Fleet size materially impacts the LTV of individual customers; software ACVs can vary by 4 orders of magnitude depending on market tier

• Product Features: Integrated parts procurement is a strong differentiator

https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2019/January/global-fleet-mro-market-forecast-commentary-2019-2029.pdf

22

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1. Global Fleet & MRO Market Forecast Commentary (2019 - 2029); Oliver Wyman2. What is general Aviation / Aerial Work?

AVIATION: GLOBAL MARKET STRUCTURE

ASS

ET O

WN

ERS

& O

PER

ATO

RS

NAICS:481111 Scheduled Passenger Air Transportation 481112 Scheduled Freight Air Transportation481211 Nonscheduled Chartered Passenger Air Transportation 481212 Nonscheduled Chartered Freight Air Transportation 481219 Other Nonscheduled Air Transportation11511 Support Activities for Crop Production (e.g. Aerial crop dusting or spraying)

NAICS:488111 Air Traffic Control | 488119 Other Airport Operations | 488190 Other Support Activities for Air Transportation424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)561720 Janitorial Services722310 Food Service Contractors

OP

ERA

TION

S FAC

ILITIESA

SSET

S

NAICS:488190 Other Support Activities for Air Transportation

MR

Os

OEM

s

NAICS:336411 Aircraft Manufacturing336412 Aircraft Engine and Engine Parts Manufacturing336413 Other Aircraft Parts and Auxiliary Equipment Manufacturing

NAICS:332912 Fluid Power Valve and Hose Fitting Manufacturing (e.g. Fluid power aircraft subassemblies)334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing (e.g. aircraft instruments)334519 Other Measuring and Controlling Device Manufacturing (e.g. Aircraft engine instruments)336320 Motor Vehicle Electrical and Electronic Equipment Manufacturing423860 Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers

SUP

PLIER

S & O

THER

General Aviation & Aerial Work

• Corporate/Business Travel

• Charter & Fractional Ownership Operations

• Air Ambulance, Air Tourism & Other

Civil Aviation~377,500 aircraft

Commercial Air Transport

• Passenger Airlines

• Cargo

General Aviation &Aerial Work~350,000 aircraft2

Commercial Air Transport27,492 aircraft1

Fixed Base Operators (FBOs)Airports

• International

• Regional

Fixed wing and rotary aircraft, powered by gas turbine or piston

engines

Fixed wing aircraft, powered by gas turbine engines

https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2019/January/global-fleet-mro-market-forecast-commentary-2019-2029.pdf

https://www.upl-aopa.lu/index.php/what-is-general-aviation-aerial-work/

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AVIATION: AIRCRAFT LIFECYCLE

Pre-Operation Operations End-of-Cycle

Key Stakeholders: Sale Registration Flight Maintenance & Repair Inspection Retired or Sold

OEMs & Suppliers

• OEMs sell aircraft to various owner types

• Provide parts & specifications

• Produce manuals and flight bulletins

Owners• Individuals• Charters• Corporates• Medical (air

ambulance)• OEM (demo fleet)

• Research maintenance to assess value

• Purchase aircraft

• Register aircraft with FAA

• Use aircraft and/or participate in charter programs

• Schedule MRO maintenance

• Participate in MRO aircraft management program

• Run internal maintenance department

• Keep records of maintenance activity for regulatory adherence and aircraft valuations

• Sell or retire aircraft• Valuation driven by

engine hours, airworthiness compliance, etc.

MRO Providers• OEM• Independent• Charter

• Perform inspection and provide written report for buyers

• Proactive scheduling of services

• Provide end-to-end, multiple, or specialized maintenance & repair services

• Provide hangar space

• Required to review compliance history before maintenance

• Log maintenance work• Sign-off

• Performs inspection and providers written report for buyers

Operators / Non-MRO Services• Charters• FBOs

• Aircraft brokerage & leasing

• Provide charter services

• Aircraft brokerage & leasing

Financial Institutions• Banks• Asset Finance• Insurance

• Provide aircraft financing

• Purchase insurance

Regulatory Orgs• FAA• EASA• ICAO

• Buyer consults aircraft records maintained by FAA

• Processes aircraft registration

• FAA logs new or change in ownership

• Sets flying safety guidelines

• Airworthiness directives specify maintenance needs

• Federal Aviation Regulations (FAR)

• Requires annual or progressive inspection to be done by person acceptable to the FAA

• Tracks change of ownership or plane retirement

Others• Airports• Flight Schools

• Flight path clearance and flight tower communication

• Mechanical & regulatory training

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GENERAL AVIATION MAINTENANCE & OPERATIONS SOLUTIONS

SYSTEM OF RECORD» Filing and organizing all logs, work orders, forms, and reports in physical storage» Difficult and inefficient to access and reference these documents during the course of

normal workflow

FLIGHT OPERATIONS» Conflicts between scheduled maintenance

and operating schedules» Duplicative work and data entry errors from

flight logs by maintenance team» Manual generation of itineraries and flight

crew schedules

FAA COMPLIANCE» Satisfying FAA Airworthiness Directives and

following FAA Advisory Circular 120-78 for any electronic record-keeping

» Over 570 FAA directives and revisions published in 2016 alone

DATA ANALYTICS & PREDICTIVE MAINTENANCE» Insights not derivable from hard-copy, paper systems,

creating blind spots to possible efficiency improvements» Scheduling conflicts and resource constraints more likely

with manually scheduled maintenance

MAINTENANCE TRACKING» Organizing all maintenance items required

by the manufacturer and the FAA in a hard-copy, paper system

» Manually updating maintenance schedules for dates due and flight hours

INVENTORY MANAGEMENT» Manually cross-checking maintenance logs

to identify necessary purchases for inventory

» No integration with requisition or purchasing systems to place orders

INTEGRATED PARTS PROCUREMENT» Tracking needed parts, pending orders and maintenance

status in separate systems or by hand» Inability to order parts quickly from reputable

manufacturers in a straightforward, ecommerce-like medium

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AVIATION: LEADING MAINT. & REPAIR SOFTWARE VENDORS BY SOLUTION

SOFTWARE SOLUTIONS

Asset Maintenance Asset Operations

Key Vendors:Maintenance

Tracking (CAMO)MRO

Inventory Management

Parts Procurement

Flight Planning & Dispatch

Flight & Fuel Optimization

Crew Mgmt.Data

Management

acq. Flightdocs ● acq. Flightdocs acq. Flightdocs acq. Flightdocs ●

● ● acq. ILS ● ●

acq. Mxi Technologies ● ● ● IFS Maintenix

eLogbook

● ● ●

● ● ● ● ● ●

● ● ● ●

● ●

● ●

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AVIATION: LEADING MAINT. & REPAIR SOFTWARE VENDORS BY CUSTOMER T YPE

SOFTWARE BUYERS

Asset Owners/Operators Third Parties

Key Vendors:Corporates

Civilian Government

Military Commercial MedicalPart 135 Charters

Part 145 Providers

MRO Facilities

● ● ● ● ● ● ●

● ● ● ● ● ●

● ● ●

● ● ●

● ● ●

● ●

● ●

●

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Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20

AVIATION: SOFTWARE M&A TIMELINE

Dec-15: Airbus acq.

Navtech (flight systems mgmt.)

Vendor consolidation has accelerated in recent quarters as major aggregators acquire among their partner ecosystem

Mar-17: GE Aviation acq.

AirVault (digital aviation records management

system)

Sep-15: Honeywell acq.

Aviaso (aviation fuel management software)

Jan-17: IFS acq. Mxi

Technologies (aviation maintenance BPM)

Oct-16: Hearst acq.

CAMP Systems (aviation maintenance & tracking

SaaS)

Oct-16: Stellar Labs acq.

FlightApps (flight operations management)

Nov-19: Vista Equity acq.

Accelya (analytics for commercial & cargo

airlines)

Jan-20: AFV acq. APG

(flight operations software)

Mar-20: AFV acq.

RocketRoute (online flight planning platform)

Jan-18: Aras Corp. acq.

Infospectrum MRO business

Dec-18: Liberty Hall

Capital acq. APG (flight ops software)

Sep-19: Valsoft acq.

Comsoft OASES (on-prem aviation engineering &

maintenance software)

Sep-19: CAMP Systems

(Hearst) acq. Boeing’s Inventory Locator Service

(electronic aviation parts

marketplace)

Mar-19: IBS acq. AD OPT

Technologies (aviation crew mgmt. software)

Sep-19: Wheels Up acq.

Avianis Systems (aviation business management

SaaS)

Aug-18: Garmin acq.

FlightPlan (flight planning & trip mgmt.)

Feb-18: Alyssum Group

acq. RocketRoute (online flight planning platform)

Mar-19: Boeing acq.

Foreflight (flight planning app)

Sep-19: SGS acq. Argus

International (aviation diligence & tracking

services)

Jun-20: ATP acq.

Flightdocs (aviation maintenance & ops)

Dec-16: ATP acq.

Casebank (aviation maintenance trend

platform)

Sep-19: JSSI acq.

Tracware (aviation SaaS & systems integration)

Oct-16: Flatiorns

Solutions acq. TechPubs (flight ops & company

manuals)

Sep-16: Satcom Direct

acq. AircraftLogs (flight scheduling & tax)

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AVIATION: SELECTED MAINT. & REPAIR SOFTWARE VENDOR PROFILES

COMPANY DESCRIPTION FINANCIAL SUMMARY INVESTORS / PARENT

ATPwww.atp.com

HQ: Brisbane, CAFounded: 1973CEO: Rick Noble

• Global information services and software provider to aviation companies and flight departments• Information Services division provides aircraft technical publications and real-time regulatory

information to the general and business aviation industries, while its Software Solutions division provides maintenance tracking, flight operations, inventory management, repetitive defect analysis and troubleshooting software

• The company’s solutions help reduce operating costs, improve aircraft reliability, and supports technical knowledge sharing and collaboration within the general and business aviation, military / defense, commercial aviation, and OEM industries

• Supports more than 75,000 aircraft maintenance professionals in 137 countries

Revenue:• ~$50m (2020E)• ~$60m (2021E)

• Profitable

• Acquired by ParkerGale (Sep 2015)

• Minority investment from Accel-KKR: funded acquisition of Flightdocs (Jun 2020)

CAMP Systemswww.campsystems.com

HQ: Merrimack, NHFounded: 1968CEO: Ken GrayPresident: Vibby Gottemukkala

• Provider of software and information services to the business aviation market• Product suite spans maintenance management, engine health monitoring, inventory

management, flight scheduling and helicopter management solutions• Subsidiaries include Aircraft Shopper Online, AMSTAT, AVTRAK, CESCOM, Component Control,

CONTINUUM Applied Technology, Daniel Systems, Inventory Locator Service, StockMarket.aero, The Trend Group

• Recommended service provider for a number of OEMs, such as Beechcraft, Bombardier, Cessna, Dassault Aviation, Embraer and Gulfstream

• $2 billion EV (2016) • Acquired by Hearst (Oct 2016)

IFSwww.ifs.com

HQ: Linköping, SWEFounded: 1983CEO: Darren Roos

• IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations

• 4,000 employees and growing ecosystem of partners support more than 10,000 customers around the world

• Aerospace & Defense division covers aerospace & defense manufacturers, airlines & fleet operators, defense and in-service support, independent MROs, and military operators

• Example customers:

• ~$3.4b EV (2020)• $1.7 billion EV (2015)

LTM as of 6/30/2020:• Revenue: ~$725m• EBITDA margin: ~23%

• Acquired by EQT (Nov 2015)

• Recapitalized by EQT and TA Associates (Jul 2020)

Ramcowww.ramco.com

HQ: Chennai, INDFounded: 1992CEO: VA Aggarwal

• Ramco is a multi-tenanted cloud and mobile-based enterprise software with solutions for HCM and Global Payroll, ERP and M&E MRO for Aviation

• Ramco Aviation Software for Aerospace & Defense is a comprehensive enterprise-wide M&E/MRO software addressing the needs of Airlines, Heli Operators, MROs and Business Aviation segments

• 1,000+ customers across 35 countries – select customers:

• LTM as of 3/31/2020:• Revenue: $75.9m• Rev. growth: 4.9%• Gross margin: 54.8%• EBITDA: $11.2m• EBITDA margin: 14.7%

• NSEI: RAMCOSYS

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AVIATION: SELECTED MAINT. & REPAIR SOFTWARE VENDOR PROFILES (CONT.)


Seabury Solutionswww.seaburysolutions.com

HQ: Summit, NJFounded: 2002CEO: Bijoy Mechery

• Seabury Solutions builds aviation IT solutions for customers ranging from the smallest operator to the largest airlines across the world

• Key products include ALKYM: MRO software for aircraft management and control; EPAS: airline route profitability software; and eAuthority: aircraft safety management software

• Global footprint with offices located in Ireland, Netherlands, Germany, Argentina, USA, Kenya, Australia, Philippines and Korea

• Select customers:

• Total funding: n/a • Subsidiary of Seabury Capital Group

Swiss Aviation Softwarewww.swiss-as.com

HQ: Basel, CHEFounded: 1989CEO: Ronald Schäuffele

• Fully integrated software solution AMOS covers the business requirements of: airlines of all size and type from start-ups to tier-one organizations (incl. airline groups), maintenance organizations working for specific airlines, independent MRO providers of all size, while being suitable for all aircraft types (including new-generation aircraft, fixed- and rotary-wing aircraft)

• AMOS helps customers manage maintenance, engineering and logistics needs and assures compliance with a complex system of aviation regulations.

• The M&E software solution, AMOS, consists of eight core modules (Material Management, Engineering, Planning, Production, Maintenance Control, Component Maintenance, Commercial, Quality Assurance) with two optional modules (Human Resources, Financial Management)

• Total funding: n/a • Wholly owned subsidiary of Swiss International Air Lines AG; ultimate parent: Lufthansa AG (XTRA: LHA)

TRAXXALLwww.traxxall.com

HQ: Montreal, QCFounded: 2013CEO: Scott Henderson

• Provides analyst-supported aircraft maintenance tracking and inventory management services to business jet and helicopter operators worldwide

• Helps customers achieve operational savings, reduce aircraft downtime, improve accuracy of data, and enrollment seamlessly

• Solutions used by aircraft owners, executives, directors of maintenance / aviation, engineers, chief pilots and parts managers in over 35 countries

• Industry partners include: Airbus, Hawker, Cessna, Beechcraft, Rockwell Collins, and RocketRoute• Select customers:

• Total funding: n/a • n/a

Traxwww.trax.aero

HQ: Coconut Grove, FLFounded: 1997CEO: Jose Almeida

• Comprehensive software solutions catering to all aspects of aircraft maintenance management• TRAX eMRO and eMobility are products that support digital signatures, paperless Workpacks and

manuals, RFID-capability for logistics, Biometric security, offline capability for mobile apps, web-based solutions and the ability for its users to work anywhere with easy access to real-time information

• With over 190 customers, TRAX has offices in USA, UK, Japan and Saudi Arabia• Select customers:


30

I. GCA COVERAGE




V. APPENDIX

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Sources: Market Research, Company Press Releases, GCA Proprietary Research1. UN Conference on Trade & Development; Merchant fleet2. Total capitalization: total capital raised or market capitalization3. Post-money valuation of latest financing/buyout or enterprise value

MARINE: MAINTENANCE & REPAIR SOFTWARE MARKET OVERVIEW



Aug 2020 n/a n/a

Mar 2020 n/a n/a

Oct 2019 n/a n/a

May 2019 $32.5 n/a

LEADING SOFTWARE VENDORS


Post-$ Val. ($m)3

Spring, TX

1971Ryan Moody n/a n/a

Lafayette, LA

2003

Jeffery Svendson, Sr.

n/a n/a

Lysaker, Norway

1997

Per Steinar Upsaker

n/a n/a

Potsdam, Germany

1990

Andreas Bargfried

n/a n/a

Victoria, BC

1999Nolan Barclay

Acq. by Volaris Group (2018)

Undisclosed

Linköping, Sweden

1983Darren Roos

Acq. by EQT Partners (2015)

$1,658.2

Seattle, WA

2015Cosmo King $6.4 Undisclosed

NSW, Australia

2016Sam Wheaton n/a n/a



Aug 2019 $1.5 n/a

Mar 2019 $5.0 n/a

Feb 2019 $11.0 $40.0

Apr 2017 $3.8 $16.0

MARKET OBSERVATIONS

• Planned maintenance systems are mandatory onboard ships according to the International Safety Management Code (ISM); these systems allows shipowners and operators to plan, perform and document vessel maintenance at intervals complying with Class and manufacturer requirements beginning with the establishment of a complete database of machinery, equipment and fittings

• Shipyards leverage a combination of ERP and PLM solutions covering the full vessel lifecycle: manufacturing, fabrication, procurement, commissioning, overhaul, refit, maintenance, repair and decommissioning, although not all shipyards offer MRO by default

TOTAL ADDRESSABLE MARKET

# Vessels:

1.95mWorldwide1


• Target Market(s): Technical Ship Management on commercial vessels (ocean-going, coastal and inland waterways); Shipyard MRO (largely non-U.S. market)

• Revenue Models: Usage-based fees (per vessel)• Customer Churn: Systems that offer central management of fleetwide equipment and

maintenance jobs are less likely to churn than Technical Ship Management systems, which are ship-specific (vulnerable to change of ownership/fleet compatibility dynamics)

• Market Tiers: Deep-sea vessels are more dependent on comprehensive maintenance systems, unlike vessels that overnight in port (e.g., workboats)

https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=93

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1. UN Conference on Trade & Development; Merchant fleet

MARINE: GLOBAL MARKET STRUCTURE

ASS

ET O

WN

ERS

& O

PER

ATO

RS

NAICS:483111 Deep Sea Freight Transportation483112 Deep Sea Passenger Transportation483113 Coastal and Great Lakes Freight Transportation483114 Coastal and Great Lakes Passenger Transportation483211 Inland Water Freight Transportation483212 Inland Water Passenger Transportation

NAICS:488310 Port and Harbor Operations | 488320 Marine Cargo Handling | 488330 Navigational Services to Shipping424720 Petroleum and Petroleum Products Merchant Wholesalers (except Bulk Stations and Terminals)561720 Janitorial Services722310 Food Service Contractors

OP

ERA

TION

S FAC

ILITIESA

SSET

S

NAICS:336611, Ship Building and Repairing488390 Other Support Activities for Water Transportation

SHIP

YAR

DS, D

RYD

OC

KS & R

EPA

IR SER

VIC

ESSH

IP B

UIL

DER

S

NAICS:336611 Ship Building and Repairing332410 Power Boiler and Heat Exchanger Manufacturing

NAICS:334511 Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing (e.g. marine vessel instruments)423860 Transportation Equipment and Supplies (except Motor Vehicle) Merchant Wholesalers 424990 Other Miscellaneous Nondurable Goods Merchant Wholesalers (incl. Ship chandler merchant wholesalers)

MA

RIN

E SUP

PLY &

OTH

ER SER

VIC

ES

Largest Deep Sea, Coastal and Inland Water Transportation Companies by Market Share Terminal Types (within Ports)

• Container

• Ro-Ro (Roll On-Roll Off)

• Oil & Gas

• Bulk Cargo

• Multi Purpose

Port and Terminal Operators

Tankers567,287 vessels1

Bulk Carriers842,375 vessels1

Container Ships265,653 vessels1

General Cargo73,402 vessels1

Other Types204,155 vessels1

Includes Passenger Ships (e.g. Ferries), Offshore Vessels (e.g. oil & gas platforms) and Work Boats (Fishing Vessels, Specialty Vessels, Dredgers etc.)

https://unctadstat.unctad.org/wds/TableViewer/tableView.aspx?ReportId=93

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SOFTWARE SOLUTIONS

Asset Operations Facilities Operations

Key Vendors:Vessel

ManagementPlanned Maint.

Crew Management

Voyage Management

Fleet Management

Terminal Operations

Drydock Management

Shipyard Management

● ● ● ●

SAMM™Satellite Assisted

Marine Management

Preventer™Preventive

Maintenance

VoyagePro™Vessel Scheduling and Shore Base Reporting

BASSnet™ Maintenance &

Materials

BASSnet™ Operations

BASSnet™ Ports Management

BASSnet™ Projects

Planned Maintenance Software

Crewing Software for Ship Management

Companies and Agencies

Fleet Reporting Software

Compliance SystemMarine Fleet Maintenance

Software

Crew Scheduler & Management

Shipbuilding & Marine Industry

Software

MarineInsight MarineInsight

Super Yachts

MARINE: LEADING MAINT. & REPAIR SOFTWARE VENDORS BY SOLUTION

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SOFTWARE BUYERS

Asset Owners/Operators Third Parties

Key Vendors:Commercial

ShippingCommercial Passenger

Oil & Gas Marine Work Boat Super YachtsPort/Terminal

OperatorsShipyard

OperatorsDrydock

Operators

● ● ●

●

● ● ● ● ●

●

● ●

● ● ● ● ● ●

● ● ● ●

●

MARINE: LEADING MAINT. & REPAIR SOFTWARE VENDORS BY CUSTOMER TYP E

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MARINE: SELECTED MAINT. & REPAIR SOFTWARE VENDOR PROFILES


ABS Groupwww.abs-group.com

HQ: Spring, TXFounded: 1971CEO: Ryan Moody

• ABS Group provides data-driven risk and reliability solutions and technical services that help clients confirm the safety, integrity, quality and efficiency of critical assets and operations

• Solutions span technical inspection & verification, safety, risk & compliance, asset performance management, and management systems certification

• Software products include nautical fleet management software (workflow & EAM), PHA (Process Hazard Analysis) software, THESIS BowTie (risk management) and MIDAS (Meteorological Information and Dose Assessment System – dispersion modeling)

• Key customer markets include marine & offshore, oil, gas & chemical, LNG, industrial manufacturing and government

• Total funding: n/a• Revenue: ~$175m

1• Wholly owned

subsidiary of ABS

Advanced Logistics, LLCwww.al-llc.com

HQ: Lafayette, LAFounded: 2003CEO: Jeffery Svendson

• Provides real time web-based integrated logistics management information solutions for the offshore oil and gas industry

• Products include: Reporting Dashboard: customizable UI; Satellite Assisted Marine Management: electronic vessel management system for offshore oil and gas workboat industry; Preventer: automated and company-specific preventive maintenance procedures, safety inspections, and other routines required on a vessel; Satellite Assisted Marine Management Premier: logistics management application for E&P operators in the oil and gas industry; Daily Transportation Activity Report: shore base tool with operational data, project tracking, transportation tracking, charter management, and expense allocation; ezTRAC.Manifesting: application to track and record material movements; Land Transportation Management: software application that schedules and creates dispatches for land transportation

• The company also offers customers support, on-site support, guide support, technical support and satellite communications and satellite hardware services

• Total funding: undisclosed

• Minority raise from ASCO Group Limited (Nov 2012)

BASS Software Ltd.www.bassnet.no

HQ: Lysaker, NORFounded: 1997CEO: Per Steinar Upsaker

• BASSnet is a single-platform modular-based marine fleet management software solution• Key product categories include maintenance, projects (dry docking), environmental, ports

management, operations, financials, safety & improvement, HRM (crewing), risk management, document manager, procurement, inventory (app), and web portal plus additional HRM and procurement integrations

• 100+ customers ranging from ship owners and ship managers, operators of rigs and floating production, storage and offloading vessels (FPSOs), and offshore units use the software across 2,000+ vessels


CODie Software Products e.K.www.codie.com

HQ: Potsdam, DEUFounded: 1990CEO: Andreas Bargfried

• The maritime arm of CODie delivers management software for vessels and shipping companies that help reduce shipbuilding costs, improve fleet efficiency

• The classic suite includes technical (planned maintenance), safety management and purchasing; vessel service request management; and claims, damage and new ship building management

• The new maritime management suite (MSFT .NET / C#) includes modules for crew management, quality and safety management, smart fleet reporting, and planned maintenance for ships and rigs

• CODie serves 2,000+ customers globally across financial and maritime divisions and is running 350 vessels on the platform today


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MARINE: SELECTED MAINT. & REPAIR SOFTWARE VENDOR PROFILES (CONT.)


Helm Operations Softwarewww.helmoperations.com

HQ: Victoria, BCFounded: 1999CEO: Nolan Barclay

• Helm Operations develops ship operating software to improve marine fleet management in the United States. The company offers:

• Vessel management software for offshore supply vessels, harbor docking, and barging• A suite of Helm Marine Operations software that includes:

• HSQE Manager that reduces that risk and closes the loop on nonconformities• Helm Dispatch Manager, a fleet management software that improves communication

between departments, and handles dispatching and billing for workboat companies• Helm Maintenance Manager, a maintenance software minimizes unscheduled downtime for

vessels and equipment by planning and prioritizing maintenance jobs• Helm Personnel Manager (payroll), Helm Purchasing Manager (PO’s), and Helm Onboard

• Helm CONNECT, an application, workflow and Web-based software that ensures engagement through smaller applications for specific tasks faced by crews and shore-based teams

• Total funding: n/a • Acq. by Volaris Group (TSX: CSU) (Sep 2018)

IFSwww.ifs.com

HQ: Linköping, SWEFounded: 1983CEO: Darren Roos

• IFS develops and delivers enterprise software for customers around the world who manufacture and distribute goods, build and maintain assets, and manage service-focused operations

• The Shipbuilding & Maritime division offers ERP, EAM and service management targeting shipbuilders and repair companies

• The ERP solution spans design, procurement, construction, outfitting, sea trial, and maintenance, while the EAM offers a CMMS (computerized maintenance management) and ALM (asset lifecycle management)

• Select customers include:

• ~$3.4b EV (2020)• $1.7b EV (2015)

LTM as of 6/30/2020:• Revenue: ~$725m• EBITDA margin: ~23%

• Acquired by EQT (Nov 2015)

• Recapitalized by EQT and TA Associates (Jul 2020)

ioCurrentswww.iocurrents.com

HQ: Seattle, WAFounded: 2015CEO: Cosmo King

• ioCurrents MarineInsight™ analytics platform offers real-time insights about fleet health to better protect assets, increase safety and reduce maintenance and fuel costs. MarineInsight gathers data and analyzes models onboard, leveraging edge analytics to diagnose issues that are raised as alerts to the vessel and transmitted in real time to the shoreside team. Through MarineInsight, a live digital twin of the vessel is created, allowing for more informed decisions.

• Key features include: SmartAlerts (threshold, time-based, and predictive alerts), EnergySmart, SmartGauges, SmartCargo & SmartChill (maintain quality for entire trip), and SmartAnalysis

• Targets commercial fishing, work boat, commercial shipping, commercial passenger and terminal equipment industries

• Total funding: $6.4m • Raised $5.0m from Imagen Capital Partners (Mar 2019)

• Additional seed funding from angel investors & Founder/CEO

Seahubseahubsoftware.com

HQ: New South Wales, AUSFounded: 2016CEO: Sam Wheaton

• Seahub is an intuitive cloud-based yacht maintenance software designed to improve reliability and safety for the global superyacht industry

• Seahub is a planned maintenance system (PMS), designed for captains, engineers, management companies, brokers and owners who wish to collaborate vessel information and document processes to achieve a highly organized and efficient vessel

• Manage equipment, maintenance, inventory, documents, yard periods, oil analysis programs, daily logs, defect logs, safety inspections, drills and checklists and a crew & guest database

• Product modules include equipment, maintenance, inventory, projects*, fluid analysis*, documents, warranty*, and contacts (*optional modules)


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er &

Res

iden

tial LEADING SOFTWARE VENDORS


Post-$ Val. ($m)3

Boston, MA

2013Patrick Burns $18.1 n/a

Denver, CO

2006Eric Remer

Acq. by Providence Equity / $506.94 $2,0004

Atlanta, GA

1979Connie Certusi

Acq. by Advent International

Conf.

San Diego, CA

2013Ian Heidt $20.1 $56.1

Edmonton, AB

2011Sam Pillar $8.1 n/a

Glendale, CA

2007

Ara Mahdessian

$399.8 $2,250

Irving, TX

2014Max Paltsev $10.2 n/a

Holmdel, NJ

1984

David Giannetto

Acq. by IFS $350



Aug 2020 n/a n/a

May 2020 n/a n/a

Dec 2019 $76.3 n/a

Sep 2019 n/a n/a



May 2020 Undisclosed $73.8 $2,250

Jan 2020 Undisclosed $20.6 $345.6

Dec 2019 $16.4 n/a

Dec 2019 $8.2 $23.2

Sources: Market Research, Company Press Releases, GCA Proprietary Research1. Heating & Air-Conditioning Contractors in the US (IBISWorld, June 2020) | Plumbers in the US (IBISWorld, June 2020) | Electricians in the US (IBISWorld, June 2020)2. Total capitalization: total capital raised or market capitalization3. Post-money valuation of latest financing/buyout or enterprise value4. Based on 2019 financing post-Providence acquisition

HVAC, PLUMBING & ELECTRICAL SERVICE SOFTWARE

MARKET OBSERVATIONS

• Average annual revenue per business of HP&E is relatively high among Residential Home Services markets, opening attractive opportunities for incremental offerings (service plans, equipment financing, CPQ tools, etc.)

• Micro market (<5 trucks) delivers simple but effective dispatch, routing, work order management and POS functionality; Mid-market vendors are focused on technician sales enablement at POS (e.g. ServiceTitan)

• Bi-directional real-time integration with practically all QuickBooks desktop versions is important; ease of use and data transportability are often cited by users as key features

TOTAL ADDRESSABLE MARKET

# Businesses:

430kin U.S.1

Total Revenue:

$373bin U.S.1

Avg. Revenue / Business:

$867kin U.S.


• Target Market(s): Highly competitive software market at all customers tiers, ranging from solo master technicians to 100+ truck enterprises

• Revenue Models: Subscription fee + variable (payments on consumer credit card processing volume)

• Customer Churn: High in Micro market; relatively low in Mid-market (5-50 trucks) where willingness to move data and/or retrain on new systems is lower; inorganic market capture expected to continue to drive M&A activity

• Crossover Verticals: Refrigeration, Commercial Food Equipment servicing

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SELECTED HVAC, PLUMBING & ELECTRICAL SOFTWARE VENDOR PROFILES


Dispatchwww.dispatch.me

HQ: Boston, MAFounded: 2013CEO: Patrick Burns

• Provides a modern field service experience platform designed to solve the communication gap between enterprise brands, third-party contractors, and consumers

• Give enterprise service brands real-time visibility across their entire independent network while improving customer experiences

• Industries reached include home and property, warranty and claims, franchise, retail, and manufacturing; used to manage over 60,000 jobs per day

• Products span enterprise platform, work, experience, communications, engagement, and booking• Select customers include:

• Total funding: $18.1m+ • Raised capital from Vista Equity (Sep 2018)

• Prev. raised $12m from ServiceMaster at $42m post-money valuation (Jun 2017)

EverCommercewww.evercommerce.com

HQ: Denver, COFounded: 2006CEO: Eric Remer

• Multi-vertical portfolio of marketing, business management, and customer experience software solutions focused on developing, acquiring, and transforming mission-critical software that helps service-based businesses accelerate growth, streamline operations and increase retention

• Industries served include home and field services (field services and repair, remodeling and home improvement, security and alarm, landscaping, and disaster mitigation), health services, and fitness and wellness

• Portfolio includes 35 software brands across business management, customer retention and marketing, supporting 200,000+ businesses worldwide

• Total funding: $506.9m (incl. debt financings)

• Acquired by Providence Equity for $115m (Oct 2016)

FieldEdgewww.fieldedge.com

HQ: Atlanta, GAFounded: 1979President: Connie Certusi

• Field service management software serving the HVAC, plumbing, electrician, locksmith, and commercial equipment industries; also offers a marketplace for service industry solutions

• Office product includes scheduling and dispatching, customer management, QuickBooks integration, service agreements, dashboards, and performance

• Mobile product includes mobile CRM, quotes and invoicing, price presentation, and mobile dispatch

• HVAC, plumbing, and electrical solution allows services companies to increase efficiency, generate larger tickets, and provide better customer support


• Total funding: n/a • Acquired by Advent International via Clearent (Mar 2018)

Housecall Prowww.housecallpro.com

HQ: San Diego, CAFounded: 2013President: Ian Heidt

• Serves 15,000+ home services companies across HVAC, plumbing, electrical, garage door, home cleaning, window cleaning, carpet cleaning, and pest control industries

• Allows users to save time, offer better customer service, boost revenue, process payments, and receive reviews

• HVAC product offers software solutions for dispatching, invoicing, scheduling, QuickBooks, maintenance agreements, and price estimating

• Also offers XL product for larger home services businesses, including a sales proposal tool, advanced reporting, expense management, and consumer financing

• Total funding: $20.1m• Revenue: $30-40m ARR

• Raised $11m from General Catalyst, Baird Capital, & August Capital at $56m post-money valuation (Aug 2017)

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SELECTED HVAC, PLUMBING & ELECTRICAL SOFTWARE VENDOR PROFILES (CONT.)


Jobberwww.getjobber.com

HQ: Edmonton, ABFounded: 2011CEO: Sam Pillar

• Field service management software helping companies organize operations, manage customer relationships, and grow their business

• Reaches 50 industries including, HVAC, plumbing, electrical contracting, cleaning and landscaping• $10+ billion invoiced and 70,000+ customers across 40+ countries• Features include client management / CRM, scheduling and dispatching, invoicing and follow-ups,

mobile application, online booking, client hub and notifications, job forms, quoting, email and postcard marketing, credit card processing, and reporting


• Total funding: $8.1m • Raised $6m from OMERS Ventures & others (Nov 2015)

ServiceTitanwww.servicetitan.com

HQ: Glendale, CAFounded: 2007CEO: Ara Mahdessian

• Leading all-in-one software for commercial and residential HVAC, plumbing, electrical and other field service businesses

• Used by 2,500+ field services companies with 100,000+ contractors• Aimed at helping business grow revenue, streamline operations, view real-time insights and build

better relationships with customers• Product suite includes reporting, dispatch, customer service, sales, marketing, payments, payroll,

equipment, agreements, accounting, inventory, and scheduling• Select customers include:

• Total funding: $399.8m• ~$2.25b EV (2020)

• Raised $73.8m Series E at ~$2.25b post-money valuation (May 2020)

• Raised $165m Series D led by Index Ventures, at a $1.65b post-money valuation (Nov 2018)

Service Fusionwww.servicefusion.com

HQ: Irving, TXFounded: 2014CEO: Max Paltsev

• All-in-one field service management software capable of running a service business from anywhere with enterprise-level features

• Currently servicing over 4,000 companies across a variety of field service industries including HVAC, plumbing, electrical, appliance repair, IT services, A/V & smart home automation

• Enables small- to mid-sized field service companies to be more competitive with better customer, estimate and job management tools, automated voice and text notifications, easier scheduling and billing, as well as mobile field worker and customer apps

• Over 40,000 users with a 93% CSAT score

• Total funding: $10.2m• Revenue: ~$10m ARR

• Raised $10.2m Series A from Five Elms Capital (Jul 2018)

WorkWavewww.workwave.com

HQ: Holmdel, NJFounded: 1984CEO: David Giannetto

• Leading provider of cloud-based field service and fleet management software for companies with a mobile workforce

• 8,000+ customers across HVAC, plumbing, electrical contractors, delivery management and logistics / distribution, pest control, landscaping and lawncare, and cleaning

• WorkWave Service and ServMan products provide general field service management solutions, such as business development, scheduling, dispatch, billings and payments, reporting and analytics, and marketing

• WorkWave Route Manager, GPS and Routing Engine products provide route planning, tracking, arrivals and departure, customer notifications, and analytics solutions, among others

• Total funding: n/a • Acquired by IFS for $350m (Nov 2017)

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May 2020 n/a n/a

Apr 2020 $6.0 n/a

Mar 2020 Undisclosed (Angel) $0.5 n/a

Mar 2019 n/a n/a

LEADING SOFTWARE VENDORS


Post-$ Val. ($m)3

Bloomington, IN

1994Jon Garner n/a n/a

Chesterfield, MO

2003Mark Tipton Undisclosed Undisclosed

Readyville, TN

1986Dave Tucker n/a n/a

Annapolis, MD

1988Bill Seven Undisclosed Undisclosed

Markham, ON

2009Mark Bradley Undisclosed Undisclosed

Walled Lake, MI

1984Bill Nunan

Acq. by Serent Capital

Undisclosed

Atlanta, GA

2013

Sean McCormick

$8.6 Undisclosed

Maineville, OH

1979Joseph Rippe n/a n/a



Jan 2020 n/a n/a

Aug 2019 n/a n/a

Oct 2018 n/a n/a

Feb 2018 n/a n/a

Sources: Market Research, Company Press Releases, GCA Proprietary Research1. Landscaping Services in the US (IBISWorld, June 2020)2. Total capitalization: total capital raised or market capitalization3. Post-money valuation of latest financing/buyout or enterprise value

LANDSCAPING & LAWN CARE SERVICE SOFTWARE

MARKET OBSERVATIONS

• Primary buyers in the Landscaping & Lawn Care service market include Property Managers, Colleges & Universities, and Home Builders

• Commercial maintenance and general services equal 46.2% of total industry revenues• Secondary buyers include residential property owners (households >$100k annual income);

Residential maintenance and general services equal 35.9% of total industry revenues• Low operational costs and seasonal labor have helped support profit margins

TOTAL ADDRESSIBLE MARKET

# Businesses:

512kin U.S.1

Total Revenue:

$102bin U.S.1

Avg. Revenue / Business:

$200kin U.S.


• Target Market(s): Landscaping-specific software is generally applicable to both Commercial and Residential markets

• Demand: Strongest all-year demand among service orgs. in southern/warmer states (CA, FL, TX)

• Revenue Models: Subscription fee + variable (payments on consumer credit card processing volume)

• Customer Churn: This industry is largely composed of non-employers, or sole proprietors, accounting for more than three-quarters of all businesses; high churn at bottom of market offset by attractiveness of market size and aggregate sales volume

• Crossover Verticals: Pest Control, Snow Removal (eliminates seasonality), Pool, Roofing

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SELECTED LANDSCAPING & LAWN CARE SOFTWARE VENDOR PROFILES


ArborGoldwww.arborgold.com

HQ: Bloomington, INFounded: 1994CEO: Jon Garner

• Field service management software for tree care, landscaping, plant health care, lawn care, pest control and snow removal businesses

• Product allows users to manage customers, estimates, work orders, jobs, invoicing, crews and sales teams

• Full feature set includes CRM, bids and estimates, job and customer management, billing and invoicing, flexible scheduling and messaging, dynamic marketing, and mobile updates and tracking

• Solution is flexible and scalable for any sized business, gives multiple users access on one account, can be mobile or web-based, and offers easy billing setup

• Lowest price point plans start at $99 per month


Aspirewww.youraspire.com

HQ: Chesterfield, MOFounded: 2013CEO: Mark Tipton

• Business management software for landscape, construction and snow management businesses• Allows landscaping businesses to manage all aspects of a customer’s experience, from prospect to

proposal to sale to renewal• Product features include CRM, reporting, estimating, scheduling, invoicing, site audit, mobile time,

payroll, purchasing and equipment• Offer various services including implementation, AspireCare customer support, training, and

software updates• 200+ customers with 30,000+ users• Select customers include:

• Total funding: n/a • Financing from Mainsail Partners (Mar 2019)

CLIP Softwarewww.clip.com

HQ: Readyville, TNFounded: 1986CEO: Dave Tucker

• Lawn care management software that offers in-depth reporting, full customer history, seamless scheduling and integrated billing

• Basic plans start at $40 per month, Plus plans start at $70 per month and Enterprise plans start at $100 per month

• Customer maintenance offers users full organized customer information and history, automatic reminders, and a robust customer portal

• In-depth reporting provides job costing, employee efficiency, and jobs by revenue breakdown• Billing features provide free two-way sync with QuickBooks, online and batch payments, and quick

pay through CLIP Payments


Include Softwarewww.include.com

HQ: Annapolis, MDFounded: 1988CEO: Bill Seven

• Business software for the landscape industry, offering accurate estimates, profitable operations, and complete reporting in one software solution

• 250+ customers spanning landscape contractors, landscape maintenance companies, snow and ice management businesses, interior plantscapers, nurseries, and lawn and garden centers

• Products include Asset (full landscaping solution), iCREWtek (connects office with operations), Asset Client Portal (24/7 customer portal), and iKPI (reporting dashboards and analytics)

• Used by executives, operations, IT support, accounting, and sales departments• Select customers include:

• Total funding: n/a • Seed funding from Niche Invest (Jan 2017)

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SELECTED LANDSCAPING & LAWN CARE SOFTWARE VENDOR PROFILES (CONT.)


LMNwww.golmn.com

HQ: Markham, ONFounded: 2009CEO: Mark Bradley

• Landscape business management software used by 85,000 workers every day• Allows users to manage sales / leads with CRM tool, optimize budgeting and estimating, plan and

schedule jobs, and follow up on work using timesheet, job costing, jobsite watch, and GPS systems• Customer portal accepts credit card payments, allows users to pay invoices, and share schedules

and jobsite services / photos• QuickBooks integration tool for quick export of payroll and invoices• Recently launched new marketplace to connect contractors and suppliers• Offers a free version of the product, a basic subscription ($199 per month), and a professional

subscription ($299 per month) with additional optional add-ons

• Total funding: n/a • Financing from Serent Capital (May 2020)

Real Green Systemswww.realgreen.com

HQ: Walled Lake, MIFounded: 1984CEO: Bill Nunan

• Developer service software and marketing tools primarily for lawn care, landscaping, pest control, tree care and irrigation businesses; also applicable to HVAC, carpet and residential cleaning, and other related services businesses

• Product features include CRM, estimating, routing, fleet management, mobile applications, referral assistant, customer online portal, payment processing, and automated marketing

• Company also offers marketing tools to help its customers grow their base of customers; includes list services, direct mail, custom printing, and digital services


• Total funding: n/a • Acquired by Serent Capital in (Oct 2018)

SingleOpswww.singleops.com

HQ: Atlanta, GAFounded: 2013CEO: Sean McCormick

• All-in-one software for the green industry to help businesses grow revenue, increase profitability, and improve customer satisfaction

• Serves the tree and arbor, lawn care, landscaping, and sod farm / landscape supply end-markets with over one million jobs completed to date

• Product features span sales (CRM, estimating, job-site mapping, proposals, email / SMS communication, and invoicing / payments), management (scheduling / routing, job management, purchase orders, inventory, job costing, custom reports and QuickBooks syncing) and field (mobile access, work orders, timesheets, GPS tracking, job forms and payroll exports)

• Select customers:

• Total funding: $8.6m

LTM as of 4/23/2020:• 100%+ rev growth• 100%+ ARR growth• 120% net retention

• Raised $6m from Five Elms Capital and CreativeCo Capital(Apr 2020)

Slice Technologieswww.sliceplus.com

HQ: Maineville, OHFounded: 1979CEO: Joseph Rippe

• Software provider to landscape, wholesale nursery, maintenance, and retail garden center operations

• Flagship SLICEplus product is designed to improve operations, streamline labor management, and increase overall profitability

• Features include routing, scheduling, billing and invoicing, estimating, contract tracking, job costing, reporting, inventory monitoring, pricing and discounting, loyalty programs, and target marketing

• Company also offers CRM capabilities, vendor partnership management, and accounting functionality


43

I. GCA COVERAGE




V. APPENDIX

44

OUR CONTINUED SUCCESS WORKING WITH MAINTENANCE & REPAIR TECH VEN DORS

CHF 55 millionequity investment from

GCA acted as exclusive financial advisor to Screening Eagle

A Swiss family office &

Multi-Vertical

acquired by

GCA acted as exclusive financial advisor to FieldEdge

HVAC, Plumbing & Electrical

acquired by

GCA acted as exclusive financial advisor to Acumatica

Multi-Vertical

acquired by

GCA acted as exclusive financial advisor to Flightdocs

General Aviation

a portfolio company of

GCA acted as exclusive financial advisor to General Atlantic

acquired by

Auto Repair

acquired by

GCA acted as exclusive financial advisor to Providence Equity

Auto Repair

acquired by

GCA acted as exclusive financial advisor to TOA Technologies

Multi-Vertical

acquired by

GCA acted as exclusive financial advisor to Davisware

Commercial Food Equipment

45

TRANSACTION OVERVIEW• On June 18, 2020, Aircraft Technical Publishers (ATP) – an aircraft technical publications and regulatory

information provider – announced the acquisition of Flightdocs

• Flightdocs founder and CEO, Rick Heine will retain a minority equity stake in the combined company, and will continue to be involved in the day-to-day activities of ATP while holding board position

• Having acquired ATP in September 2015, Chicago-based private equity firm ParkerGale will retain significant ownership in the combined entity; Accel-KKR invested both equity and debt capital in the transaction

TRANSACTION SIGNIFICANCE• The combination of ATP and Flightdocs creates one of the largest providers of software solutions and information

services within the aviation industry, offering a comprehensive suite of products to airlines, fleet operators, MROs, and FBOs

• ATP’s technical publication libraries, regulatory content chronic defect analysis & troubleshooting software will now leverage Flightdocs’ maintenance tracking and inventory management software, creating a significant cross-sell opportunity between the two customer bases

• The new company now supports 75,000 maintenance professionals across more than 7,500 customers in 137 countries

GCA ADVISORS' ROLE• GCA acted as exclusive advisor to Flightdocs, helping refine the company’s operating model, forward projections

and marketing message

• Additionally, GCA guided Flightdocs through all stages of negotiation and confirmatory diligence

• ATP prevailed after a highly competitive process that produced numerous bids; ATP was selected on the strength of its offer and strategic vision, especially driven by a highly complementary product suite and considerable synergies across the aviation maintenance and operations landscape (e.g. MROs)

FLIGHTDOCS SALE TO AIRCRAFT TECHNICAL PUBLISHERS (ATP)

Flightdocs is a leading provider of maintenance, flight operations, and inventory management software to the business aviation sector, serving corporations, air charters, air medical organizations, government agencies, fractional carriers and aircraft management companies

has been acquired by

GCA acted as exclusive financial advisor to Flightdocs

46

TRANSACTION OVERVIEW• On August 22, 2019, Davisware partnered with Serent Capital to continue the company’s focus on delivering the

best, most innovative solutions to its customers in the Field Services industry

• Both Dan and Jennifer Davis will be joining the Board of Directors, and Jennifer will continue leading Davisware while working closely with Serent and the rest of the Board to further strengthen the company’s foundation for growth

• This represents Serent Capital’s ninth investment in the Field Services industry

TRANSACTION SIGNIFICANCE• Serent partnered with Davisware due to its differentiated, market-leading capabilities in the commercial

equipment services market, where both parties see significant opportunity for future growth

• Davisware’s total addressable market - an estimated 2.9M businesses - generates roughly $930b in aggregate sales and is both fragmented and relatively under-penetrated by cloud-based systems. These factors, plus the aggregation of card-based payment processing, are expected to drive the company’s growth for the foreseeable future

GCA ADVISORS' ROLE• GCA worked with the husband and wife team of Dan and Jennifer Davis to prepare their company for sale,

including establishing the company’s operating model, forward projections and concise marketing message that encapsulated the company’s long operating history

• In a thorough process, Serent Capital emerged as a preferred partner on the basis of their commitment to the Davis’ vision for the business within the key vertical markets of CFES and mechanical equipment servicing

DAVISWARE SALE TO SERENT CAPITAL

Davisware provides a complete suite of solutions that enable Field Services businesses, contractors and OEMs, including commercial food equipment service (CFES), petroleum contracting, commercial HVAC, and other specialty trades, to better serve their customers and manage their internal operations


GCA acted as exclusive financial advisor to Davisware

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TRANSACTION OVERVIEW• On June 19, 2019, EQT Partners announced the signing of a definitive agreement to acquire cloud-native

enterprise software provider Acumatica through an investment vehicle owned by the same holding company that holds IFS AB (Industrial and Financial Systems)

• To further reinforce this coalition, following the closing of the transaction Jonas Persson will serve as chairman for both companies

TRANSACTION SIGNIFICANCE• IFS, the global enterprise applications company, and Acumatica, the world's fastest-growing Cloud ERP provider,

will serve growth industries such as manufacturing, distribution, construction, service, energy and A&D, while competing directly with SAP, Oracle, Microsoft, Infor, and Sage among others

• The new global entity is ultimately designed to meet a growing range of customer requirements

• Both IFS and Acumatica understand that businesses are becoming increasingly global, regardless of size or industry. To scale and compete, customers need a network of resources that will support business operations wherever they, their business partners, and customers may be

GCA ADVISORS' ROLE• GCA maintained a strong relationship and consistent dialogue with Acumatica after advising it on its 2018 capital

raise (led by Accel-KKR)

• Retained shortly after EQT’s inbound proposal to acquire the business

• Supported Acumatica and its shareholders in the negotiation of transaction structure, key economic terms, and definitive documentation

• Comprehensive execution support to satisfy a thorough, global diligence process under a highly accelerated timeline

ACUMATICA SALE TO EQT PARTNERS

Acumatica Cloud ERP enables service organizations to maintain a real-time view of their customers’ activities across all operations when Field Service operations are fully integrated with the back office, streamlining dispatching, reducing response times, and minimizing costs with the Acumatica Field Service Edition suite


GCA acted as exclusive financial advisor to Acumatica

48

TRANSACTION OVERVIEW• On March 30, 2018, Advent International announced the acquisition of FieldEdge, a leading Field Service

management software provider

• Under the terms of the transaction, Advent has merged FieldEdge with Clearent, and will own a majority stake in the combined entity

• Clearent’s first institutional investor, FTV Capital, invested alongside Advent; other existing investors and senior management of both companies have also rolled a meaningful minority stake

TRANSACTION SIGNIFICANCE• Transaction represents opportunity for Advent to support further growth of a strong integrated payments

platform and a leading SaaS solution in Field Services

• Advances Clearent’s strategic focus in owning software to become a leading provider of integrated payments

• FieldEdge’s day-to-day operations to remain unchanged and the transaction further strengthens its commitment to customers, partners and employees

GCA ADVISORS' ROLE• GCA’s New York team was selected on the basis of its software M&A advisory expertise related to integrated

payments, HCM and service ERP

• The team advised on all stages of the process and positioned FieldEdge as one of only a few scale businesses addressing the residential home services market with robust ERP and POS functionality delivered as a SaaS solution

• In a truncated yet highly competitive process, Advent was selected on the strength of their offer combined with an articulated vision in combination with Clearent, yielding a superior outcome for FieldEdge’s investors

FIELDEDGE SALE TO ADVENT INTERNATIONAL

FieldEdge is the leading provider of cloud-based Field Service management software enabling home contractors to run their small businesses with ease, save time and make more money through targeted marketing and improved resource utilization


GCA acted as exclusive financial advisor to FieldEdge

49

TOA TECHNOLOGIES SALE TO ORACLE

TRANSACTION OVERVIEW• On July 31, 2014, Oracle announced that it signed an agreement to acquire TOA Technologies (TOA), adding the

leading Field Service SaaS to Oracle Service Cloud and Oracle ERP cloud solutions to deliver effective and timely home- and facility-based customer service

TRANSACTION SIGNIFICANCE• Oracle Service Cloud and Oracle ERP cloud solutions with TOA will transform customer service operations,

allowing them to achieve operational excellence and improve productivity while exceeding customer expectations

• The addition of TOA expands Oracle's ability to provide end-to-end personalized customer service solutions with the addition of critical face-to-face Field Service interactions, enabling visibility into customer history throughout the customer relationship lifecycle

• The combination of Oracle Service Cloud and TOA is expected to create the most complete Customer Service Cloud, modernizing customer service operations and driving superior customer satisfaction

GCA ADVISORS' ROLE• GCA worked with the founders/management on acquiror meeting preparation, in advance of formal engagement

• Prior transaction experience and personal relationships with likely buyer universe (e.g., sales of Siebel and Vitrue to Oracle) ensured quick access and timely, transparent feedback from market check

• Led negotiations from initial proposals through signing of the definitive agreement

• Comprehensive execution support to satisfy overwhelming diligence process

• Navigated a range of business issues post-LOI to ensure certainty to close

TOA Technologies (TOA) is a leading provider of cloud-based Field Service solutions that manages and optimizes the last mile of customer service for enterprises by coordinating activities between dispatchers, mobile employees and their customers


GCA acted as exclusive financial advisor to TOA Technologies

50

GLOSSARY (1/3)

AVIATION

• Aircraft Maintenance Technician – A person who has been trained as an aircraft engineer and holds a license issued by a National Aviation Authority (NAA), which allows them to certify work carried out on an aircraft. This Certifying Status may be restricted to certain classes of work. Often mechanical work on Engines and Airframes is distinguished in both training and approvals from electrical /avionics / autopilots. The scope of such an approval may be further restricted by aircraft type and restricted approvals may be granted that allow limited use of certifying powers in areas of work outside the principal area of training and competence of the LAE. Also known variously as a Licensed Aircraft Engineer (LAE).

• ATS – Air Traffic Service; a service that regulates and assists aircraft in real-time to ensure their safe operations.

• Aviation Software – Aviation software provides operational support to airlines, airports, and FBOs (fixed-base operators) such as taxi services, cafes, and other airport service providers. Additionally, aviation software supports the management of airline fleets. Together this encompasses a wide range of front desk and sales / service automation, maintenance, and airport personnel management. Vendors offering aviation software often specialize in just this vertical but cover all of airline sales, workforce, and maintenance operational support via their software. Aside from all-in-one solutions some aviation technology vendors focus on just one element of airline software (e.g., aircraft maintenance & repair, fleet management, ticket sales, etc.).

• CAMO – Continuing Airworthiness Management Organization. The main function of CAMO is to Plan, Organize, Implement and Control the maintenance activities related to aircraft. This is an organization approved and responsible for the continuation of important tasks of high airworthiness management standards.

• Crew Pairing – A pairing is a sequence of connectable flight legs, within the same fleet, that starts from and ends at the same crew base, where the crew actually lives. A pairing is sometimes called an itinerary for the crew assigned to this journey.

• Crew Rostering – Airline crew rostering is an important part of airline operations and an interesting problem for the application of operations research. The objective is to assign anonymous crew pairings either to personalized rosters or to anonymous bid lines which subsequently will be assigned to individual crew members.

• Crew Tracking – Crew tracking simplifies the airline crew recovery process and allows businesses to maintain operational efficiency even during major disruptions. It provides tools for detecting, resolving and following up on changes to the originally published crew plans.

• Digital Briefing – Briefings should help both the pilot flying (PF) and the pilot not flying (PNF) understand the desired sequence of events and actions, as well as the condition of the aircraft and any special hazards or circumstances involved in the planned flight sequence.

• Document Authoring – Aviation authoring software facilitates the creation of documents related to the aviation industry. Typical users of the software include airlines and their staff, who leverage these solutions to write manuals and other official documents. Many aviation authoring solutions will also contain distribution features, designed to facilitate the internal distribution of manuals for a company. Airlines use these tools to create and house manuals, compliance documents and more. Employees utilize aviation authoring software to access and alter existing official documents for redistribution in case rules or regulations change.

• Electronic Flight Bag (EFB) – An electronic flight bag is an electronic information management device that helps flight crews perform flight management tasks more easily and efficiently with less paper.

• Engine Health Monitoring – Installed in the aircraft electronic bay, or more recently on an engine, engine monitoring systems (also referred to as engine health monitoring systems or engine condition monitoring systems) are ideal for optimizing the maintenance and performance of engines and increasing engine efficiency and time on the wing.

• FAA – Federal Aviation Administration; governmental body of the United States with powers to regulate all aspects of civil aviation in that nation as well as over its surrounding international waters.

• Fatigue Risk Management – A Fatigue Risk Management System (FRMS) has been defined by ICAO as "a data-driven means of continuously monitoring and maintaining fatigue related safety risks, based upon scientific principles and knowledge as well as operational experience that aims to ensure relevant personnel are performing at adequate levels of alertness".

• FBO – A fixed-based operator is an organization granted the right by an airport to operate at the airport and provide aeronautical services such as fueling, hangaring, tie-down and parking, aircraft rental, aircraft maintenance, flight instruction, and similar services.

• Flight Planning – Flight planning is the process of producing a flight plan to describe a proposed aircraft flight. It involves two safety-critical aspects: fuel calculation, to ensure that the aircraft can safely reach the destination, and compliance with air traffic control requirements, to minimize the risk of midair collision. In addition, flight planners normally wish to minimize flight cost through the appropriate choice of route, height, and speed, and by loading the minimum necessary fuel on board. Air Traffic Services (ATS) use the completed flight plan for separation of aircraft in air traffic management services, including tracking and finding lost aircraft, during search and rescue (SAR) missions.

• IATA – International Air Transport Association; a trade association of the world's airlines founded in 1945. Sets technical standards for airlines.

51

GLOSSARY (2/3)

AVIATION (CONT.)

• ICAO – International Civil Aviation Organization; a specialized agency of the United Nations. It changes the principles and techniques of international air navigation and fosters the planning and development of international air transport to ensure safe and orderly growth.

• IFALPA – International Federation of Airline Pilots Associations; a worldwide association of national pilots' associations. IFALPA was founded in 1948 and is based in Montreal, Quebec, Canada.

• Maintenance Program – Maintenance program is a document containing the maintenance requirements/tasks that needs to be carried out on an aircraft in order to ensure its continuing airworthiness.

• Minimum Equipment List (MEL) – A list which provides for the operation of aircraft, subject to specified conditions, with particular equipment inoperative (which is) prepared by an operator in conformity with, or more restrictive than, the MEL established for the aircraft type.

• MRO – Maintenance, Repair, Overhaul (MRO) in aviation is the repair, service, or inspection of an aircraft or aircraft component. It is essentially all of the maintenance activities that take place to ensure safety and airworthiness of all aircrafts by international standards.

• NAA – National Aviation Authority or civil aviation authority is a government statutory authority in each country that maintains an aircraft register and oversees the approval and regulation of civil aviation.

MARINE

• Automatic Identification System (AIS) – The automatic identification system is an automatic tracking system that uses transceivers on ships and is used by vessel traffic services. When satellites are used to detect AIS signatures, the term Satellite-AIS is used.

• Boat – Defined as watercraft typically suitable or intended for personal use.

• Bunkering – Bunkering is the supplying of fuel for use by ships and includes the shipboard logistics of loading fuel and distributing it among available bunker tanks. The term originated in the days of steamships, when the fuel, coal, was stored in bunkers.

• Crew Management System – Crew management systems are made to support the complete crewing process across the entire marine crewing pool, enabling businesses to optimize vessel crew deployment, find qualified crew members and have all key data and reports accessible onboard and onshore.

• Freight forwarder – A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel operating common carrier, is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution.

• HSQE (or QHSE) – Health, safety, quality and environment; HSQE software helps to reduce the administrative burden of relevant shipping industry regulations, such as ISM/ISPS, SOLAS, TMSA, classification rules, vetting inspections or Port State Control. At the same time, the ship safety management system supports quality, safety and compliance with those rules and regulations

• Intermodal Transportation – The use of two or more modes, or carriers, to transport goods (freight) from shipper to consignee without any handling of the freight itself when changing modes. Special standardized containers are used for intermodal transport of cargo on trucks, freight trains, and ships.

• International Maritime Organization (IMO) – The United Nations’ specialized agency with responsibility for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships.

• International Safety Management (ISM) – The purpose of the International Safety Management (ISM) Code is to provide an international standard for the safe management and operation of ships and for pollution prevention. The Code's origins go back to the late 1980s, when there was mounting concern about poor management standards in shipping. Investigations into accidents revealed major errors on the part of management, and in 1987 the IMO Assembly adopted resolution A.596(15), which called upon the Maritime Safety Committee to develop guidelines concerning shore-based management to ensure the safe operation of ro-ro passenger ferries. The Code establishes safety-management objectives and requires a safety management system (SMS) to be established by "the Company", which is defined as the owner or any other organization or person, such as the manager or bareboat charterer, who has assumed responsibility for operating the ship and who, on assuming such responsibility, has agreed to take over all duties and responsibility imposed by the Code.

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GLOSSARY (3/3)

MARINE (CONT.)

• Planned Maintenance – A planned maintenance system allows shipowners and operators to plan, perform and document vessel maintenance at intervals complying with Class and manufacturer requirements. The objective is to ensure safe and reliable vessel operations, including equipment, in addition to compliance with all applicable regulations. There are different ways of achieving this, depending on the size and complexity of the shipping company and the types of vessels in operation. In all cases, a systematic approach to maintenance is based on risk assessment and begins with the establishment of a complete database of machinery, equipment and fittings. A planned maintenance system on ships is mandatory according to the International Safety Management Code (ISM). An effective planned maintenance system not only helps meet safety and environmental objectives laid out in the ISM Code, it is also an investment in the protection of the assets and optimization of their management.

• Safety Management System (SMS) – The safety management system (SMS) is an organized system planned and implemented by the shipping companies to ensure safety of the ship and marine environment. All commercial vessels are required to establish safe ship management procedures.

• Ship – Watercraft typically suitable or intended for other than personal or recreational use.

• Shipping Data Analytics (business intelligence) – Collecting, analyzing and disseminating information on shipping activities. The core of the data is the ship specification, ownership, commercial operation and movements. Data includes details of a parameter such as the volume of freight, shipping time and cost. Additionally, vessel data such as fuel consumption, optimal route and finding the right ship for cargo are also recorded and play a crucial role in decision making.

• Shipping Procurement – Purchasing software for shipping companies; a fleet of vessels purchases millions of USD in spares, stores, services, lubes, etc. Quotation management and optimal supplier selection is vital for increased profitability.

• Technical Management – In logistics, technical management involves the duties a shipping company must perform for the technical operation of a vessel. This involves management related to crew management with related tasks, logistics related to operations as well as operations, service and maintenance.

• Time Charter Equivalent (TCE) – A performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. Time charter equivalent is calculated by taking voyage revenues, subtracting voyage expense, including canal, bunker and port costs, and then dividing the total by the round-trip voyage duration in days.

• Vessel Management – A vessel management system uses advanced technological equipment to monitor and manage the vehicular traffic in the oceanic and sea waters.

• Voyage Management System (VMS) – A workflow management and recordkeeping system that spans pre- through post-voyage activities. Typical functionality includes contract management, planning & scheduling, chartering, management of itineraries, cargo, and bunkers, demurrage, and TCE calculations.

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This report was prepared by GCA Advisors, LLC, a registered broker-dealer and member of FINRA and SIPC. Sources of data include Capital IQ and other news organizations. Information obtained from third-party sources is considered reliable, but we do not guarantee that the information herein is accurate and complete. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision.

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GCA: Asset Maintenamce & Repair · 2020. 8. 26. · Sources: Market Research, Company Press...

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Transcript of GCA: Asset Maintenamce & Repair · 2020. 8. 26. · Sources: Market Research, Company Press...