HW&Co. Industry Reader Template - Harris Williams & Co. · 2015-02-27 · Expedia has agreed to...

www.harriswilliams.com

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

EUROPEAN TECHNOLOGYINDUSTRY UPDATE │ FEBRUARY 2015

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www.harriswilliams.comwww.harriswilliams.de

RECENT DEVELOPMENTS

COMPANY SPECIFIC NEWS

BT has agreed to acquire EE, the UK-based provider of mobile telecommunications services, from Deutsche Telekom and Orange valuing the business at £12.5bn CommScope has agreed to acquire TE Connectivity's Broadband Network Solutions business

unit for c.$3bn Canon has made a public tender offer for Axis, the Sweden-based provider of digital network

video solutions for security cameras, valuing the business at SEK 23.2bn Telecity has agreed to acquire Interxion, the Netherlands-based provider of carrier-neutral

colocation data centre services in Europe, valuing the business at c.€2.4bn Rocket Internet has agreed to acquire a 30% stake in Delivery Hero, the Germany-based

company that operates a network of online food ordering sites, valuing the business at c.£1.7bn SS&C has agreed to acquire Advent Software, the US-based provider of enterprise investment

management solutions, software products, data integration tools and web-enabled services for the financial industry, in a deal valuing the business at $2.5bn Expedia has agreed to acquire Orbitz, the US-based online travel company, valuing the

business at $1.5bn Dalian Wanda led a group of investors to acquire Infront Sports & Media, the Switzerland-

based provider of sports marketing services such as media rights distribution, media production, host broadcasting and digital media services, from Bridgepoint valuing the business at €1.1bn The Intertain Group has agreed to acquire Gamesys, the UK-based online bingo and gaming

group, valuing the business at £649m Bridgepoint has acquired eFront, the France-based software solutions provider to the financial

and insurance sectors, from Francisco Partners valuing the business at €300m Tamedia has agreed to acquire Ricardo.ch, the Switzerland-based online marketplace

operator, from Naspers valuing the business at CHF 240m FSN Capital has agreed to acquire EET Europarts, the Denmark-based IT hardware business,

from Alipes for c.DKK 1.2bn Arrow Electronics, has initiated a tender offer to acquire Data Modul, the Germany-based

provider of information software systems and flat displays valuing the business at €96m Under Armour has acquired Endomondo, the Denmark-based developer of health and fitness

mobile application software, from Seed Capital valuing the business at $85m Arrow Electronics has acquired RD Trading, the UK-based provider of IT disposal services such

as technical processing, secure data destruction and testing and assessment of used IT equipment, from Computacenter valuing the business at £56m Silicon Laboratories has acquired Bluegiga Technologies, the Finland-based provider of

bluetooth-based wireless local area networks and communication systems, valuing the business at $61m Synchronoss Technologies has acquired the personal cloud business of F-Secure, the Finland-

based IT security software provider, for c.$60m Apple has acquired Semetric, the UK-based provider of online analytics solutions to the music

industry, from Imperial Innovations Group valuing the business at $50m S. Carter Enterprises has agreed to acquire Aspiro, the Sweden-based provider of audio and

video streaming services, from Verdane Capital valuing the business at SEK 376m CVC Growth has acquired Wireless Logic, the UK-based provider of machine-to-machine

“M2M” managed services, from ECI Partners TA Associates, advised by HW&Co., has acquired a majority interest in Access Technology

Group, the UK-based provider of business management software, from Lyceum Capital Partners Oakley Capital has acquired Damovo, the Glasgow-based provider of enterprise ICT services The Riverside Company has agreed to acquire Bike24, the Germany-based online bike retailer Eltel, the Finland-based telecommunications business, raised SEK 2.9bn through an IPO SigFox Wireless, the France-based cellular network operator providing data transmission

services, has raised $115m of funding from a number of large corporate investors including Air Liquide, GDF Suez, Telefonica and SK Telecom WorldRemit, the UK-based online money transfer company, has received $100m from

Technology Crossover Ventures in Series B funding


CONTENTS RECENT DEVELOPMENTS PUBLIC MARKET TRADING SOFTWARE IT SERVICES COMMUNICATIONS INTERNET AND DIGITAL MEDIA

TMT GROUP OVERVIEWOur Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies. Our extensive industry knowledge and transaction leadership experience spans the software, digital media, IT services and communications sectors. Our professionals in London, Boston and San Francisco have global relationships with leading technology companies and financial investors. Thoughtful advice, deep experience and technology expertise, creativity and attention to detail from our senior technology bankers have resulted in a track record of consistently exceeding our clients' expectations.

CONTACTS

EUROPE

Thierry MonjauzeManaging [email protected]+44 (0) 20 7518 8901

Jonathan OrganVice [email protected]+44 (0) 20 7518 8900

UNITED STATESJeff BistrongManaging [email protected]+1 (617) 482-7501

Michael WilkinsManaging [email protected]+1 (415) 288-4260

Sam HendlerManaging [email protected]+1 (617) 654-2117

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http://www.harriswilliams.com/

mailto:[email protected]





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(10%)

(8%)

(6%)

(4%)

(2%)

0%

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6%

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23 Jan 30 Jan 06 Feb 13 Feb 20 Feb

Software IT ServicesInternet and Digital Media CommunicationsNasdaq Composite DJ Stoxx 600 Technology

(15%)

(10%)

(5%)

0%

5%

10%

15%

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25%

Feb 2014 May 2014 Aug 2014 Nov 2014 Feb 2015

Internet and Digital Media Communications

Software IT Services

Nasdaq Composite DJ Stoxx 600 Technology

According to Gartner’s latest forecasts, IT spending is forecast to grow by 2.4% in 2015 and at a CAGR of 3.0% to 2018, with devices and software exhibiting the strongest growth

Phablets are to account for over 20% of smartphones shipped by 2019, representing over 400m units and a 500% increase from 2015, according to Juniper Research

Social media spending in Western Europe is expected to reach €6.6bn by 2019, up from €3.1bn in 2014 representing a CAGR of 16.4%, according to Forrester Research

During 2014 in the UK, 38 million adults, representing 76% of the population and 21 million more than in 2006, accessed the Internet every day, according to the Office for National Statistics

According to The Boston Consulting Group, consumer adoption of 3G and 4G has outpaced that of all other technologies, growing to nearly 3bn connections in less than 15 years and is projected to exceed 8 bn connections by 2020

Cloud Service Brokerage “CSB” end-user spending on public cloud services is forecast to grow at a CAGR of 19.8% from 2013 through 2018 to $180bn, doubling the market size over 4 years, according to Gartner

INDUSTRY TRENDS

RECENT DEVELOPMENTS (CONT.)


LAST TWELVE MONTHS

Stock PerformanceLAST 30 DAYS

PUBLIC MARKET TRADING STATISTICS

Source: Various industry news outlets

5.4%4.7%4.3%3.0%0.9%0.7%

17.5%15.6%13.7%8.2%8.1%

(2.7%)

2

https://www.gartner.com/document/2985117/key-insight?ref=ddisp

http://www.fiercewireless.com/europe/story/juniper-research-phablets-account-over-20-smartphones-shipped-2019/2015-01-28

https://www.forrester.com/Forrester+Research+Social+Media+Forecast+2014+To+2019+Western+Europe+Q4+2014+Update/fulltext/-/E-RES121017

http://www.ons.gov.uk/ons/rel/rdit2/internet-access---households-and-individuals/2014/stb-ia-2014.html

https://www.bcgperspectives.com/content/articles/telecommunications_technology_business_transformation_mobile_revolution/

http://www.gartner.com/document/2985118?ref=QuickSearch&sthkw=csb&refval=147612766&qid=2fcd462b22da7c5d31d3a399ec01310d

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PUBLIC MARKET TRADING STATISTICS (CONT.)


COMPARABLE TRADING SUMMARY

Rev. Growth EBITDA Margin CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E

SoftwareEuropean Large Cap. Software 16.9% 34.5% 4.2x 3.9x 12.4x 11.3x 20.1x 18.2xApplication Software 8.0% 24.9% 3.7x 3.5x 12.8x 13.7x 19.0x 19.6xInfrastructure Software 9.4% 29.3% 3.4x 3.1x 11.3x 10.2x 19.2x 17.1xLarge Cap. SaaS 25.0% 16.0% 7.5x 6.1x NM NM 24.6x 31.6xSmall Cap. SaaS 21.3% 8.0% 4.3x 3.6x NM NM 26.6x 33.9xHCM/WFM 22.6% 6.3% 5.9x 4.7x 25.9x 19.1x 24.5x 26.4xFinTech 10.5% 27.0% 4.8x 4.4x 14.8x 15.7x 22.5x 22.4xHealthcare IT 12.4% 13.5% 3.3x 2.9x 13.4x 12.1x 22.1x 21.0xData and Data Analytics 11.9% 24.8% 4.7x 4.3x 12.1x 11.3x 19.5x 20.9xSecurity Software 18.8% 21.3% 5.7x 5.0x 16.1x 16.8x 17.9x 17.4xCAx/PLM 7.8% 27.9% 4.2x 3.8x 15.5x 12.8x 21.9x 21.3x

IT ServicesIT Services 6.3% 12.8% 1.0x 1.0x 7.8x 7.3x 14.9x 13.4xOffshore IT Services 16.1% 23.9% 3.4x 3.0x 13.9x 12.7x 19.5x 17.5xManaged Services, Colocation and Hosting 11.7% 30.9% 2.9x 2.7x 9.9x 8.8x 17.3x 21.6xData Centres 8.2% 52.6% 7.2x 6.6x 13.5x 12.1x 26.7x 32.9xPaaS/IaaS 15.6% 20.4% 3.8x 3.2x 10.8x 9.4x 21.0x 18.1x

CommunicationsDigital Broadband 2.1% 10.9% 0.8x 0.7x 7.3x 5.8x 17.2x 12.8xDiversified Communication Equipment 6.4% 13.0% 1.3x 1.2x 9.7x 8.6x 20.3x 16.4xMobile Content/Solutions Providers 24.0% 15.9% 1.3x 1.0x 8.1x 5.7x 25.4x 16.5xMobile Infrastructure Software 9.1% 24.7% 2.6x 2.6x 10.0x 8.4x 18.8x 15.3x

Internet and Digital MediaGlobal Internet Leaders 17.7% 35.3% 6.1x 5.1x 17.4x 14.4x 21.7x 22.5x

Chinese Internet Leaders 25.0% 7.2% 3.4x 2.8x 16.9x 10.2x 21.5x 18.4xOnline Classifieds 15.0% 38.4% 6.1x 5.3x 15.1x 12.1x 20.4x 18.8xContent Providers/Communities 22.6% 22.3% 5.7x 4.5x 25.2x 16.8x 32.8x 29.1xEcommerce 15.4% 15.9% 3.6x 3.2x 19.7x 16.7x 27.9x 27.7xInteractive Entertainment 4.6% 23.8% 2.2x 2.1x 8.5x 9.5x 19.1x 15.0x

Intermediation and Comparison 20.0% 20.6% 2.8x 2.4x 14.4x 9.4x 18.9x 17.7xOnline Gambling 4.3% 24.1% 2.8x 2.7x 11.4x 10.5x 19.7x 17.7xDigital Marketing 14.6% 10.9% 2.1x 1.8x 11.8x 8.8x 20.1x 23.4xOnline Travel 9.9% 23.8% 3.7x 3.2x 13.6x 12.7x 26.1x 25.6x

P / EEV / Revenue EV / EBITDACY2015E

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(15%)

(10%)

(5%)

0%

5%

10%

15%


Data and Data Analytics Infrastructure Software Large Cap. SaaS Fintech

Application Software Healthcare IT HCM/WFM Small Cap. SaaS

European Large Cap. Software Security Software CAx/PLM

SOFTWARE


LAST 30 DAYS PERFORMANCE

LAST TWELVE MONTHS PERFORMANCE

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%


Security Software Infrastructure Software HCM/WFM Healthcare IT

Application Software Large Cap. SaaS Small Cap. SaaS European Large Cap. Software

Fintech Data and Data Analytics CAx/PLM

Fintech 24.9%Healthcare IT 22.3%Application Software 12.1%Infrastructure Software 10.5%Security Software 10.3%Data and Data Analytics 0.3%European Large Cap. Software (7.4%)CAx/PLM (8.7%)Large Cap. SaaS (10.1%)HCM/WFM (13.1%)Small Cap. SaaS (13.2%)

Healthcare IT 8.3%Fintech 8.2%European Large Cap. Software 7.3%Large Cap. SaaS 7.2%Data and Data Analytics 6.7%Security Software 6.7%Small Cap. SaaS 3.8%HCM/WFM 2.8%CAx/PLM 0.7%Infrastructure Software (1.3%)Application Software (2.8%)

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Market Enterprise CY2015ECap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E

European Large Cap. SoftwareSAP 53,993 56,804 34.6% 9.6% 4.0x 3.8x 11.6x 11.0x 17.5x 16.3xDassault Systemes 11,363 10,776 33.2% 16.5% 5.4x 5.0x 16.3x 14.4x 29.4x 26.2xSage 5,135 5,531 30.1% 7.4% 3.9x 3.7x 12.8x 12.1x 18.7x 17.3xMicro Focus 2,383 2,545 40.4% 62.9% 3.3x 3.1x 8.3x 7.3x 13.0x 12.0xTemenos 1,476 1,543 37.2% 4.3% 4.7x 4.3x 12.7x 11.4x 21.7x 19.0xAveva 996 879 31.4% 0.7% 4.0x 3.8x 12.9x 11.7x 20.1x 18.4x

Mean 34.5% 16.9% 4.2x 3.9x 12.4x 11.3x 20.1x 18.2xMedian 33.9% 8.5% 4.0x 3.8x 12.8x 11.6x 19.4x 17.9x

Application SoftwareMicrosoft 234,287 194,939 35.1% 1.9% 3.2x 3.0x 9.0x 8.0x 16.6x 14.3xOracle 124,360 116,689 48.0% 3.0% 4.5x 4.4x 9.4x 8.9x 14.3x 13.2xSAP 53,993 56,804 34.6% 9.6% 4.0x 3.8x 11.6x 11.0x 17.5x 16.3xIntuit 17,245 16,683 32.4% (0.3%) 5.7x 4.9x 17.5x 13.5x 34.6x 23.7xSage 5,135 5,531 30.1% 7.4% 3.9x 3.7x 12.8x 12.1x 18.7x 17.3xConstellation Software 4,428 4,588 21.6% 15.2% 3.7x 3.2x 17.1x 14.4x 21.3x 17.5xTyler Technologies 2,556 2,422 26.9% 15.7% 6.6x 5.7x 24.4x 20.3x NM 40.1xGuidewire Software 2,478 2,155 14.3% 6.1% 8.6x 7.7x NM 41.0x NM NMACS 669 706 23.4% 6.5% 3.1x 2.9x 13.1x 12.5x 19.2x 18.2xIFS 513 485 18.1% 8.1% 2.0x 1.9x 10.8x 9.9x 25.9x 22.3xKofax 384 346 15.8% 11.3% 1.6x 1.0x 10.1x 5.6x 18.8x 16.2xSDL 368 366 9.8% 7.5% 1.3x 1.3x 13.4x 11.3x 22.9x 18.4xCegid 217 256 27.1% 2.7% 1.3x 1.2x 4.7x 4.5x 13.4x 12.5xAmerican Software 166 129 20.8% 11.2% 1.8x NA 8.5x NA 21.1x NA


Infrastructure Software Hewlett-Packard 45,145 48,240 12.6% (1.6%) 0.7x 0.7x 5.4x 5.3x 9.5x 9.4xVMware 23,135 19,532 35.7% 11.2% 4.5x 4.0x 12.6x 11.7x 20.8x 18.2xCA Technologies 9,335 8,503 38.1% (3.7%) 3.1x 3.1x 8.2x 7.4x 13.3x 12.7xRed Hat 8,132 7,870 26.9% 13.6% 6.2x 5.4x 23.2x 19.4x 39.0x 32.9xCitrix Systems 6,520 6,846 27.8% 5.9% 3.2x 3.0x 11.5x 10.6x 17.1x 15.5xF5 Networks 5,531 5,108 38.4% 11.2% 4.0x 3.5x 10.3x NA 18.2x 16.0xBrocade 3,275 3,097 26.0% 3.0% 2.1x 2.0x 8.1x 7.9x 12.9x 12.0xSolarwinds 2,529 2,367 45.7% 22.2% 7.0x 5.9x 15.3x 13.3x 25.7x 21.7xRiverbed Technology 2,131 2,132 31.5% 2.6% 2.9x 2.8x 9.3x 9.6x 16.9x 15.6xSoftware AG 1,431 1,507 27.8% 0.4% 2.4x 2.3x 8.5x 8.0x 12.5x 12.2xPegasystems 1,112 964 16.9% 12.1% 2.2x 2.0x 13.1x 11.7x 24.0x 22.3xNetscout Systems 1,038 912 31.2% 12.6% 2.8x 2.5x 9.0x 7.5x 19.6x 16.4xProgress Software 892 709 29.5% 29.5% 2.6x 2.4x 8.7x 7.6x 18.9x 16.9xRadware 606 539 22.4% 12.2% 3.4x 3.0x 15.0x 13.0x 20.1x 17.4x


Large Cap. SaaSSalesforce 25,543 26,464 18.0% 21.1% 6.3x 5.2x 35.0x 29.4x NM NMWorkday 11,127 10,257 4.1% 44.1% 14.0x 10.1x NM NM NM NMNetSuite 4,917 4,798 8.5% 30.3% 10.3x 8.0x NM NM NM NMAthenahealth 3,189 3,250 17.4% 23.1% 5.5x 4.5x 31.5x 25.3x NM NMThe Ultimate Software Group 3,011 2,941 24.8% 22.0% 7.4x 6.1x 29.8x 23.2x NM NMVeeva Systems 2,533 2,279 27.5% 25.8% 9.0x 7.2x 32.7x 25.7x NM NMGuidewire Software 2,478 2,155 14.3% 6.1% 8.6x 7.7x NM 41.0x NM NMMedidata Solutions 1,641 1,620 23.4% 19.1% 6.2x 5.2x 26.7x 21.0x NM 42.2xDealertrack Technologies 1,568 1,925 20.4% 28.8% 2.7x 2.4x 13.4x 11.4x 24.6x 20.9xCornerstone OnDemand 1,179 1,142 1.5% 29.8% 5.2x 4.1x NM NM NM NMPaylocity 993 935 3.4% 31.5% 8.8x 7.1x NM NM NM NMFleetmatics 958 870 31.5% 24.8% 4.7x 3.9x 14.8x 11.9x 30.6x 24.0x

Mean 16.0% 25.0% 7.5x 6.1x NM NM 24.6x 31.6xMedian 17.7% 24.5% 6.8x 5.6x NM NM 24.6x 31.6x

EV / Revenue EV / EBITDA P / E

SOFTWARE (CONT.)


Note: (1) Vista Equity Partners has entered into an agreement to acquire ACS

(1)

5

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SOFTWARE (CONT.)



Small Cap. SaaSLogMeIn 838 707 21.6% 18.7% 4.2x 3.6x 19.3x 16.4x NM 34.9xCvent 747 629 10.9% 25.4% 5.5x 4.5x NM 37.1x NM NMSPS Commerce 707 622 13.8% 23.1% 6.1x 5.1x 44.4x 34.6x NM NMTextura 446 404 9.3% 42.0% 7.0x 4.8x NM 25.5x NM 37.6xCallidus 446 429 13.2% 22.4% 4.0x 3.4x 30.5x 21.1x NM 34.3xBenefitfocus 352 339 (24.5%) 26.0% 3.1x 2.5x NM NM NM NMSciQuest 305 220 20.6% 5.0% 3.1x 2.8x 15.3x 13.1x NM 43.1xJIVE 235 165 0.5% 10.7% 1.3x 1.2x NM 42.6x NM NMChannel Advisors 152 111 (17.1%) 13.1% 1.8x 1.5x NM NM NM NMMarin Software 144 102 (9.8%) 16.9% 1.4x 1.2x NM NM NM NM

Mean 8.0% 21.3% 4.3x 3.6x NM NM 26.6x 33.9xMedian 13.2% 23.1% 4.2x 3.6x NM NM 24.6x 34.3x

HCM/WFMWorkday 11,127 10,257 4.1% 44.1% 14.0x 10.1x NM NM NM NMThe Ultimate Software Group 3,011 2,941 24.8% 22.0% 7.4x 6.1x 29.8x 23.2x NM NMCornerstone OnDemand 1,179 1,142 1.5% 29.8% 5.2x 4.1x NM NM NM NMPaylocity 993 935 3.4% 31.5% 8.8x 7.1x NM NM NM NMBenefitfocus 352 339 (24.5%) 26.0% 3.1x 2.5x NM NM NM NMClickSoftware 172 144 4.5% 10.5% 1.6x 1.4x 35.1x 25.8x NM 40.5xATOSS Software 108 93 26.4% 15.9% 2.9x 2.6x 10.8x 9.9x 19.1x 17.4xHalogen 92 66 (13.6%) 19.4% 1.5x 1.3x NM NM NM NMInvision Software 90 86 30.6% 4.4% 8.6x 7.3x 28.1x 17.7x 29.8x 21.4x


Healthcare ITMcKesson 34,615 39,362 2.7% 8.7% 0.3x 0.3x 12.0x 11.4x 19.0x 16.9xCerner 16,195 15,360 30.7% 44.3% 4.9x 4.3x 15.9x 13.5x 34.7x 28.9xSysmex 6,894 6,745 25.7% 14.2% 5.2x 4.7x 20.3x 18.0x NM 35.1xAllscripts Healthcare Solutions 1,469 1,825 16.4% 5.5% 1.9x 1.8x 11.6x 9.8x 26.9x 20.7xCompuGroup 1,007 1,258 22.4% 5.3% 3.1x 2.9x 14.0x 12.2x 18.5x 16.1xEmis 542 547 31.5% 10.6% 3.6x 3.4x 11.5x 11.3x 19.6x 17.9xCastlight Health 409 285 (88.1%) 73.3% 5.7x 3.6x NM NM NM NMComputer Programs & Systems 386 363 25.0% (4.6%) 2.8x 2.6x 11.2x 9.9x 19.3x 17.4xSectra Aktiebolag 370 348 23.3% 7.2% 4.4x 4.1x 18.7x 17.3x 25.9x 29.8xCegedim 339 709 19.8% (31.4%) 1.6x 1.5x 7.9x 7.8x 15.1x 11.2xMerge Healthcare 272 398 22.9% 4.0% 2.7x 2.6x 12.0x 11.0x 22.0x 18.7xCraneware 134 115 29.6% 11.6% 3.5x 3.2x 11.8x 10.8x 20.2x 18.2x


Security SoftwareSymantec 11,225 10,161 34.3% (3.9%) 2.4x 2.4x 7.1x 7.2x 13.4x 12.4xCheck Point 10,168 9,319 56.1% 8.8% 8.9x 8.2x 15.8x 14.6x 20.7x 18.5xPalo Alto Networks 7,200 7,007 18.2% 34.7% 11.1x 8.5x NM 34.5x NA NMVerisign 4,809 4,781 67.2% 4.4% 7.0x 6.7x 10.4x 9.9x 20.2x 18.4xGemalto 4,461 4,198 19.6% 20.4% 1.9x 1.7x 9.7x 8.4x 16.5x 14.4xFireEye 4,218 3,958 (34.9%) 46.2% 9.9x 7.2x NM NM NM NMFortinet 3,553 3,087 16.4% 22.4% 5.2x 4.4x 31.4x 24.5x NM NMTrend Micro 2,731 2,049 34.8% 7.7% 3.1x 3.0x 8.8x 8.9x 22.1x 21.9xProofpoint 1,416 1,382 0.6% 29.5% 8.6x 6.9x NM NM NM NMBarracuda Networks 1,329 1,221 23.6% 16.5% 6.1x 5.2x 25.9x 33.7x NM NMQualys 1,035 953 26.0% 26.7% 8.7x 7.1x 33.6x 26.0x NM NMImperva 816 746 (9.2%) 22.4% 5.8x 4.8x NM NM NM NMAVG Technologies 745 827 37.1% 14.2% 3.0x 2.8x 8.2x 8.3x 11.9x 10.5xVasco Data Security 664 575 22.4% 19.5% 3.9x 3.6x 17.2x 14.7x 23.5x 20.8xF-Secure 318 273 27.4% (5.1%) 2.5x 2.4x 9.2x 10.5x 15.1x 22.0xIntercede 50 44 0.6% 36.1% 2.6x NA NM NA NM NA



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SOFTWARE (CONT.)


(1) Advent Software has entered into an agreement to be acquired by SS&C Technologies


Fintech Intuit 17,245 16,683 32.4% (0.3%) 5.7x 4.9x 17.5x 13.5x 34.6x 23.7xFidelity Information Services 12,520 15,566 30.2% 5.8% 3.5x 3.3x 11.7x 10.9x 19.9x 17.6xFiserv 12,168 14,438 33.3% 5.1% 4.2x 4.0x 12.6x 11.8x 20.8x 18.5xPaychex 11,635 11,292 42.3% 8.2% 6.2x 5.8x 14.6x 13.6x 25.7x 23.8xMSCI 4,177 4,400 41.3% 7.3% 6.3x 5.8x 15.3x 13.7x 26.5x 22.3xJack Henry 3,535 3,516 34.8% 7.5% 4.0x 3.7x 11.6x 10.6x 24.1x 21.1xSS&C Technologies 3,355 3,698 41.7% 12.8% 6.6x 6.2x 15.8x 14.5x 23.8x 21.2xGuidewire 2,478 2,155 14.3% 6.1% 8.6x 7.7x NM 41.0x NM NMFair Isaac 1,677 2,008 27.9% 6.0% 3.7x 3.5x 13.1x 12.8x 17.6x 14.3xAdvent Software 1,500 1,619 34.2% 5.7% 6.0x 5.6x 17.4x 15.6x 28.4x 26.0xTemenos 1,476 1,543 37.2% 4.3% 4.7x 4.3x 12.7x 11.4x 21.7x 19.0xEnvestnet 1,233 1,184 18.2% 24.8% 4.2x 3.4x 23.2x 17.0x NM 36.7xPaycom 1,146 1,147 17.1% 33.1% 9.0x 7.1x NM 38.9x NM NMEllie Mae 975 926 19.3% 31.2% 7.0x 5.6x 36.2x 23.5x NM 40.0xFidessa 891 814 22.8% 5.8% 2.8x 2.6x 12.2x 10.3x 28.3x 25.9xIress 881 914 33.0% 6.3% 5.1x 4.7x 15.6x 13.9x 22.9x 20.3xSimCorp 880 853 26.8% 9.3% 4.4x 4.1x 16.6x 14.5x 24.2x 21.0xBottomline Technologies 655 633 20.3% 7.8% 2.8x 2.5x 13.9x 11.9x 19.4x NMEbix 651 661 37.5% 11.8% 4.4x NA 11.8x NA 17.5x NAQ2 Holdings 459 402 (9.6%) 33.2% 5.9x 4.6x NM NM NM NMLinedata 125 159 24.6% 3.5% 1.3x 1.3x 5.4x 5.1x 10.2x 9.6xMicrogen 92 72 27.7% 4.5% 2.4x 2.3x 8.5x 8.8x 18.6x 19.9xStatPro 49 46 14.9% 2.8% 1.4x NA 9.6x NA 21.4x NA


Data and Data AnalyticsExperian 11,696 14,063 34.9% 2.2% 4.4x 4.2x 12.5x 11.9x 19.1x 17.9xNielsen 10,958 15,274 29.9% 0.8% 3.7x 3.5x 12.4x 11.6x 16.9x 15.0xVerisk 7,233 7,776 46.8% 7.9% 6.4x 5.9x 13.7x 12.6x 25.0x 22.4xEquifax 7,209 8,135 35.3% 6.7% 4.9x 4.5x 13.7x 12.7x 21.8x 19.6xSplunk 5,381 4,866 5.6% 31.9% 12.9x 9.9x NM NM NM NMTableau Software 4,344 3,903 8.2% 49.6% 10.3x 7.6x NM NM NM NMInformatica 3,040 2,573 23.9% 8.8% 3.5x 3.2x 14.7x 13.0x 26.3x 23.0xConvergys 1,416 1,522 13.0% 6.0% 0.8x 0.8x 6.0x 5.7x 12.9x 11.9xMicrostrategy 1,298 1,074 22.6% (2.1%) 2.8x 2.7x 12.5x 10.9x 28.1x 23.1xNeustar 949 1,250 48.0% 1.0% 2.0x 2.6x 4.1x 6.1x 6.5x 9.7xPROS 457 424 13.5% 18.3% 2.9x 2.5x 21.7x 16.9x NM 45.9xKofax 384 346 15.8% 11.3% 1.6x NA 10.1x NA 18.8x NA


CAx/PLMDassault Systems 11,363 10,776 33.2% 16.5% 5.4x 5.0x 16.3x 14.4x 29.4x 26.2xAutodesk 9,117 8,371 17.7% 3.9% 5.0x 4.8x 28.2x 23.1x NM 33.4xAnsys 5,124 4,596 51.2% 6.0% 7.2x 6.6x 14.0x 12.8x 24.1x 22.4xPTC 2,551 2,774 27.6% (0.7%) 3.2x 2.0x 11.6x 6.2x 14.9x 14.7xAveva 996 879 31.4% 0.7% 4.0x 3.8x 12.9x 11.7x 20.1x 18.4xNemetschek 803 758 25.2% 19.8% 4.0x 3.6x 15.8x 14.1x 28.7x 25.4xMensch und Maschine 70 96 8.9% 8.5% 0.9x 0.8x 9.6x 7.6x 14.3x 8.7x



(1)

(1)

7

PAGE |

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

40%


Managed Services, Colocation and Hosting Offshore IT Services Data Centres PaaS/IaaS IT Services

(15%)

(10%)

(5%)

0%

5%

10%

23 Jan 30 Jan 06 Feb 13 Feb 20 FebManaged Services, Colocation and Hosting Data Centres PaaS/IaaS Offshore IT Services IT Services

IT SERVICES




Offshore IT Services 8.0%Managed Services, Colocation and Hosting 7.7%IT Services 4.6%PaaS/IaaS 3.0%Data Centres (5.1%)

Data Centres 29.1%Offshore IT Services 22.6%Managed Services, Colocation and Hosting 21.2%IT Services 9.7%PaaS/IaaS 6.6%

8

PAGE |


IT ServicesNTT Group 42,723 77,909 27.5% 0.9% 1.3x 1.3x 4.7x 4.6x 13.9x 12.3xKDDI 37,523 44,194 28.0% 5.0% 1.7x 1.7x 6.2x 5.8x 14.8x 13.6xAccenture 36,799 34,268 16.5% 2.5% 1.7x 1.6x 10.3x 9.5x 18.7x 16.9xCGI 8,913 9,924 18.0% 0.7% 1.8x 1.8x 10.1x 9.6x 17.0x 15.9xFujitsu 8,078 10,723 7.6% 1.2% 0.4x 0.4x 5.4x 5.1x 10.9x 10.1xCapgemini 8,069 7,262 11.3% 6.1% 0.9x 0.9x 7.8x 7.5x 17.0x 15.7xCapita 7,817 9,644 15.3% 9.2% 2.0x 1.9x 13.3x 12.5x 16.8x 15.9xComputer Sciences 6,545 6,776 18.0% (4.2%) 0.9x 0.8x 4.7x 4.4x 15.1x 13.7xAtos Origin 5,573 5,548 11.6% 14.9% 0.7x 0.7x 6.3x 5.9x 12.3x 11.0xNEC 5,018 7,876 7.1% 1.9% 0.5x 0.5x 6.7x 6.4x 14.8x 12.4xTieto 1,274 1,239 13.9% (2.0%) 1.1x 1.1x 8.2x 7.7x 19.2x 14.9xBechtle 1,120 1,099 5.4% 7.1% 0.5x 0.5x 10.2x 9.4x 17.6x 16.1xIndra Sistemas 1,115 1,656 9.3% 2.8% 0.8x 0.7x 8.1x 7.5x 12.7x 11.1xSopra 1,032 1,177 8.8% 37.6% 0.5x 0.4x 5.3x 4.7x 10.5x 9.0xGFI Informatique 235 295 7.6% 5.5% 0.5x 0.5x 6.2x 5.7x 11.5x 11.1x


Offshore IT ServicesTata 54,911 53,679 28.6% 16.3% 4.8x 4.3x 16.9x 15.4x 22.8x 20.0xInfosys 26,993 23,584 27.6% 9.8% 3.9x 3.6x 14.2x 13.5x 19.6x 18.6xCognizant 24,590 23,207 20.2% 20.7% 2.9x 2.5x 14.4x 12.5x 21.3x 18.4xWipro 16,573 14,981 22.9% 8.5% 2.9x 2.7x 12.5x 12.2x 17.2x 16.7xHCL 14,387 13,526 24.2% 12.4% 3.4x 3.1x 13.8x 12.8x 18.2x 16.6xTech Mahindra 6,944 6,554 20.0% 29.1% 2.3x 2.0x 11.4x 9.9x 18.1x 14.5x

Mean 23.9% 16.1% 3.4x 3.0x 13.9x 12.7x 19.5x 17.5xMedian 23.6% 14.3% 3.1x 2.9x 14.0x 12.6x 18.9x 17.6xManaged Services, Colocation and Hosting Level 3 11,705 18,660 31.0% 23.9% 3.4x 3.3x 11.0x 9.9x 33.4x 23.1xUnited Internet 6,032 6,143 20.6% 19.1% 2.3x 2.2x 11.2x 10.0x 21.5x 18.5xRackspace 4,572 4,537 34.3% 14.5% 3.4x 3.0x 9.9x 8.5x NM 41.3xWindstream 3,346 8,928 34.4% (1.4%) 2.4x 2.4x 7.0x 6.8x NM 36.6xEndurance 1,635 2,342 37.3% 19.0% 4.9x 4.3x 13.0x 10.9x 14.4x 12.9xInterxion 1,440 1,792 44.0% 9.8% 6.5x 5.8x 14.7x 12.9x NM 37.3xInternap 321 541 26.3% 3.8% 2.4x 2.3x 9.1x 8.2x NM NMiomart 220 239 43.9% 12.9% 3.3x 3.2x 7.6x 7.2x 14.6x 13.5xRedcentric 206 216 23.5% 16.4% 2.2x 2.0x 9.3x 8.6x 15.2x 13.5xMelbourne IT 64 60 13.9% 8.5% 0.9x 0.8x 6.1x 5.4x 12.1x 10.7xProact 60 62 NA 1.9% 0.3x 0.3x NA NA 9.8x 8.8x


Data CentresEquinix 8,278 10,567 46.4% 8.9% 6.2x 5.6x 13.3x 11.8x NM 28.3xDigital Realty Trust 5,959 9,657 57.4% 3.8% 8.9x 8.3x 15.5x 14.3x NM 49.9xTelecity 1,877 2,196 48.0% 7.2% 5.9x 5.4x 12.2x 10.8x 23.5x 19.4xDuPont Fabros 1,392 2,595 62.2% 4.8% 9.2x 8.5x 14.8x 13.3x 30.0x 24.2xCoresite 676 1,167 48.8% 16.2% 5.7x 5.1x 11.8x 10.3x NM 42.5x


PaaS/IaaSEMC 37,843 37,069 27.4% 6.5% 2.2x 2.1x 8.0x 7.6x 14.5x 13.0xAkamai 8,087 7,988 41.4% 16.1% 5.4x 4.7x 13.2x 11.1x 26.2x 21.9xNetapp 7,764 5,334 22.6% (2.3%) 1.3x 1.3x 5.9x 5.5x 13.8x 12.6xServiceNow 7,547 7,401 13.0% 45.9% 11.6x 8.5x NM NM NM NMCommvault Systems 1,299 1,063 18.4% 3.8% 2.6x 2.3x 14.0x 10.8x 31.8x 25.9xSynchronoss 1,193 1,162 33.2% 25.0% 3.2x 2.7x 9.5x 8.0x 20.8x 18.1xProgress Software 892 709 29.5% 29.5% 2.6x 2.4x 8.7x 7.6x 18.9x 16.9xCarbonite 258 219 15.1% 12.1% 2.5x 2.3x 16.3x 15.2x NM NME2open 162 151 (17.1%) 3.9% 2.8x 2.5x NM NM NM NM


P / EEV / Revenue EV / EBITDA

IT SERVICES (CONT.)


(1) Telecity has entered into an agreement to acquire Interxion(2) E2open has entered into an agreement to be acquired by Insight Venture Partners

(2)

(1)

(1)

9

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(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

40%


Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software

COMMUNICATIONS (CONTD.)




Mobile Content / Solutions Providers 27.1%Diversified Communication Equipment 22.4%Mobile Infrastructure Software 21.0%Digital Broadband 6.6%

(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%


Mobile Infrastructure Software Digital Broadband Mobile Content / Solutions Providers Diversified Communication Equipment

Diversified Communication Equipment 8.0%Mobile Infrastructure Software 7.4%Digital Broadband 4.6%Mobile Content / Solutions Providers (6.0%)

10

PAGE |

COMMUNICATIONS (CONT.)



Digital BroadbandLogitech 1,567 1,217 8.9% 0.0% 0.9x 0.8x 10.0x 8.5x 18.1x 15.4xTechnicolor 1,367 1,792 17.4% 1.4% 0.7x 0.8x 4.2x 5.0x 8.5x 11.3xTomTom 1,125 1,050 13.4% 5.3% 1.4x 1.4x 10.7x 9.0x 30.6x 20.6xPace 1,048 1,146 10.5% 3.0% 0.7x 0.7x 6.2x 6.1x 9.1x 8.7xKudelski 444 623 12.9% (3.5%) 1.0x 1.0x 8.1x 7.6x 14.8x 13.6xExtreme Networks 226 213 5.6% 2.0% 0.6x 0.5x 9.9x 3.5x 19.2x 10.3xParrot 181 130 9.0% 6.1% 0.7x 0.6x 7.6x 5.0x 28.7x 14.4xAdvanced Digital Broadcast 52 32 9.5% 2.5% 0.1x 0.1x 1.5x 1.6x 8.9x 8.0x


Diversified Communication EquipmentLM Ericsson Telephone 26,943 23,326 13.9% 5.5% 1.2x 1.2x 9.0x 8.0x 17.3x 14.7xNokia 19,238 15,397 14.8% 5.1% 1.6x 1.5x 10.5x 9.9x 22.2x 19.9xAlcatel-Lucent 7,008 7,419 11.9% 5.3% 0.7x 0.7x 6.1x 5.6x 23.8x 16.3xCIENA 1,402 1,889 12.3% 9.5% 1.2x 1.1x 9.4x 8.6x 15.8x 13.1xADTRAN 778 719 12.3% 6.6% 1.7x 1.6x 13.5x 10.8x 22.3x 18.2x


Mobile Infrastructure SoftwareQUALCOMM 75,694 64,185 37.5% 2.1% 3.6x 3.4x 9.7x 8.7x 14.3x 12.9xAmdocs 5,200 4,379 20.5% 3.1% 1.8x 1.8x 8.9x 8.4x 15.2x 14.2xVeriSign 4,809 4,781 67.2% 4.4% 7.0x 6.7x 10.4x 9.9x 20.2x 18.4xSynchronoss Technologies 1,193 1,162 33.2% 25.0% 3.2x 2.7x 9.5x 8.0x 20.8x 18.1xSonus Networks 537 469 12.1% 10.2% 2.2x 2.0x 18.3x 12.8x 30.3x 20.0xRedknee Solutions 207 175 16.8% (4.8%) 1.1x 1.0x 6.5x 5.0x 18.1x 11.7xTeleCommunication Systems 125 182 10.1% 7.8% 0.7x 0.7x 7.1x 6.1x 12.5x 10.1xSmith Micro Software 44 36 (0.1%) 25.1% 1.2x NA NM NA NM 16.9x


Mobile Content / Solutions ProvidersOpera Software 705 657 20.5% 29.6% 1.6x 1.2x 7.7x 5.2x 18.8x 10.1xGameLoft 232 190 11.3% 18.3% 1.0x 0.9x 8.5x 6.3x 32.0x 22.9x


EV / EBITDA P / EEV / Revenue

11

PAGE |

(40%)

(20%)

0%

20%

40%

60%


Content Providers / Communities Interactive Entertainment Global Internet Leaders Chinese Internet LeadersDigital Marketing Online Classifieds Online Travel Intermediation and ComparisonEcommerce Online Gambling

INTERNET AND DIGITAL MEDIA




Interactive Entertainment 46.7%Global Internet Leaders 23.6%Chinese Internet Leaders 13.6%Online Gambling 6.7%Content Providers / Communities (0.4%)Intermediation and Comparison (2.7%)Ecommerce (3.6%)Online Travel (5.0%)Digital Marketing (12.5%)Online Classifieds (34.6%)

Content Providers / Communities 12.7%Online Travel 11.3%Chinese Internet Leaders 10.9%Online Gambling 10.1%Intermediation and Comparison 8.2%Global Internet Leaders 3.0%Digital Marketing 1.8%Online Classifieds 1.3%Ecommerce (0.9%)Interactive Entertainment (3.1%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%


Online Travel Online Classifieds Chinese Internet Leaders Global Internet Leaders

Ecommerce Content Providers / Communities Digital Marketing Interactive Entertainment

Online Gambling Intermediation and Comparison

12

PAGE |


Global Internet LeadersApple 501,109 503,528 33.9% 16.6% 3.5x 3.2x 10.2x 9.7x 15.4x 14.1xGoogle 234,859 199,529 39.1% 14.0% 4.1x 3.5x 10.4x 9.0x 18.6x 16.1xMicrosoft 234,287 194,939 35.1% 1.9% 3.2x 3.0x 9.0x 8.0x 16.6x 14.3xFacebook 142,743 135,650 60.5% 38.1% 12.3x 9.3x 20.3x 15.2x NM 30.8xAlibaba 137,514 132,119 53.9% 33.6% 13.1x 10.1x 24.2x 19.0x 31.8x 25.0xAmazon 114,189 112,347 8.1% 15.0% 1.7x 1.4x 20.8x 16.4x NM NMBaidu 46,877 43,872 29.8% 38.2% 6.2x 4.7x 20.8x 14.9x 26.8x 19.7xeBay 45,452 43,854 31.2% 6.2% 3.6x 3.2x 11.4x 10.3x 18.3x 17.1xYahoo! 26,675 22,381 25.8% (0.8%) 7.9x 7.9x 30.8x 28.8x NM 45.7xYandex 3,339 3,336 35.4% 14.3% 5.6x 4.8x 15.9x 12.8x 24.7x 19.6x


EcommerceAlibaba 137,514 132,119 53.9% 33.6% 13.1x 10.1x 24.2x 19.0x 31.8x 25.0xAmazon 114,189 112,347 8.1% 15.0% 1.7x 1.4x 20.8x 16.4x NM NMeBay 45,452 43,854 31.2% 6.2% 3.6x 3.2x 11.4x 10.3x 18.3x 17.1xNaspers 37,722 39,579 10.8% 19.1% 8.3x 7.0x NM NM NM 30.3xNetflix 18,465 18,025 9.0% 22.8% 4.1x 3.4x 45.8x 35.0x NM NMMercadolibre 3,758 3,681 34.6% 17.4% 8.9x 7.4x 25.6x 22.2x 39.8x 33.7xIAC 3,661 3,642 15.8% 7.3% 1.7x 1.6x 10.8x 8.4x 22.4x 16.8xGroupon 3,578 2,911 8.9% 11.4% 1.3x 1.1x 14.2x 11.4x NM 36.3xAsos 2,762 2,687 5.8% 19.1% 2.2x 1.8x 38.2x 29.6x NM NMMail.ru 2,381 1,880 49.0% 12.2% 5.0x 4.3x 10.2x 8.5x 20.7x 16.4xOcado 2,238 2,337 7.4% 16.3% 2.1x 1.8x 28.3x 23.8x NM NMShutterfly 1,111 1,040 18.2% 15.2% 1.5x 1.3x 8.4x 7.1x NM NMYOOX 889 886 10.4% 19.7% 1.9x 1.6x 18.4x 14.7x NM 44.4xOverstock 356 239 2.9% 13.7% 0.2x NA 7.7x NA 28.6x NABlue Nile 225 166 4.6% 3.8% 0.5x 0.5x 11.1x 10.3x 33.9x 29.0xChannel Advisor 152 111 (17.1%) 13.1% 1.8x 1.5x NM NM NM NM


Online TravelPriceline 40,571 40,310 40.2% 11.6% 6.7x 5.7x 16.5x 13.9x 20.9x 17.7xAmadeus 11,933 13,050 38.7% 7.5% 4.9x 4.6x 12.6x 11.8x 22.1x 20.4xTripadvisor 8,216 8,071 33.8% 27.7% 7.9x 6.4x 23.2x 18.3x 39.3x 30.7xExpedia 7,767 8,192 17.0% 12.1% 2.0x 1.7x 11.5x 9.9x 24.1x 20.0xCtrip 4,301 4,375 7.1% 33.1% 4.3x 3.3x NM 23.2x NM 26.2xSabre Corporation 3,698 5,592 32.3% (0.4%) 3.1x 2.9x 9.6x 8.6x 20.5x 16.5xTravelport 1,230 2,731 23.8% 2.6% 1.9x 1.8x 8.0x 7.4x NM 30.7xOrbitz 831 998 17.1% 5.3% 1.6x 1.5x 9.2x 8.4x 29.7x 24.5xTravelzoo 93 57 3.8% (10.1%) 0.7x 0.7x 17.9x 12.4x NM 43.4x


Digital MarketingHomeAway 1,891 1,581 25.4% 18.4% 4.6x 3.9x 18.2x 14.9x NM NMConstant Contact 849 744 19.5% 17.2% 3.0x 2.5x 15.2x 12.0x 30.3x 23.8xMarketo 727 658 (16.8%) 38.4% 4.9x 3.8x NM NM NM NMCallidus Software 446 429 13.2% 22.4% 4.0x 3.4x 30.5x 21.1x NM 34.3xHarte-Hanks 320 333 12.3% (0.5%) 0.9x 0.9x 7.5x 6.6x 16.8x 14.5xMatomy Media 193 227 11.1% 29.2% 1.1x 1.0x 10.3x 7.7x 13.6x 9.9xMarin Software 144 102 (9.8%) 16.9% 1.4x 1.2x NM NM NM NMInternetQ 129 127 17.6% 28.2% 1.0x 0.9x 5.8x 5.0x 12.5x 8.8xMarchex 115 63 8.3% (23.8%) 0.7x 0.7x 8.6x 7.7x 33.7x 25.9xDotdigital 106 97 27.5% 30.6% 4.0x 2.9x 14.4x 8.1x 19.4x 14.3x1000mercis 92 62 28.6% 9.9% 1.8x 1.6x 6.2x 5.2x 14.6x 12.6xHi-Media 73 20 3.1% 2.9% 0.2x 0.2x 4.9x 3.3x NM 45.5xTradeDoubler 27 17 1.6% 0.3% 0.1x 0.1x 7.9x 5.6x NA 43.9x


EV / EBITDA P / EEV / Revenue

INTERNET AND DIGITAL MEDIA (CONT.)


(1) Orbitz has entered into an agreement to be acquired by Expedia

(1)

(1)

13

PAGE |

INTERNET AND DIGITAL MEDIA (CONT.)



Content Providers / CommunitiesLinkedIn 21,383 19,859 27.3% 35.9% 10.3x 7.9x 37.8x 26.9x NM NMTwitter 19,601 18,298 24.6% 72.6% 11.9x 7.9x 48.2x 27.5x NM NMJustEat 2,159 2,005 25.9% 29.5% 10.2x 8.6x 39.2x 28.3x NM 48.3xPandora Media 2,016 1,786 6.6% 26.6% 2.4x 1.9x 36.1x 18.3x NM 31.1xWebMD Health 934 1,097 28.7% 9.7% 2.7x 2.5x 9.3x 8.1x 26.3x 22.0xXING 501 455 32.5% 15.5% 5.4x 4.5x 16.7x 13.5x 36.0x 27.8xXO Group 273 218 21.5% 0.1% 2.4x 2.2x 11.1x 8.9x 36.1x 16.2xDemand Media 59 33 11.2% (9.3%) 0.3x 0.3x 3.0x 3.1x NM NA


Intermediation and ComparisonZillow 3,195 2,954 17.5% 107.3% 6.8x 5.4x 39.0x 19.0x NM NMMoneysupermarket 1,445 1,466 38.8% 7.5% 5.5x 5.2x 14.2x 13.4x 20.3x 19.0xBankrate 835 913 26.2% 11.7% 2.3x 2.1x 8.8x 7.9x 15.4x 12.9xAngie's List 251 247 8.0% 14.5% 1.1x 1.0x 13.2x 8.4x NM 20.3xLiquidity Services 189 141 7.8% (14.5%) 0.5x 0.3x 6.8x 5.6x 21.1x 22.0xGruppo MutuiOnline 152 145 40.9% 13.1% 2.7x 2.5x 6.6x 5.6x 18.8x 16.0xeHealth 110 72 5.1% 0.2% 0.6x 0.6x 12.1x 6.1x NM 16.1x


Online ClassifiedsSEEK 3,029 3,585 43.7% 16.0% 7.5x 6.5x 17.3x 14.7x 26.4x 21.7xRightmove 2,568 2,562 73.8% 10.4% 14.3x 13.0x 19.3x 17.7x 25.2x 22.5xYelp 2,221 1,985 18.4% 53.8% 5.3x 4.0x 28.8x 18.2x NM 36.3xSouFun 1,918 1,770 30.7% 18.6% 3.3x 2.8x 10.9x 8.1x 13.8x 10.8x51job 1,299 949 34.1% 11.4% 4.3x 3.8x 12.8x 10.6x 18.5x 15.4xCarsales.au 1,228 1,345 50.6% 20.0% 8.1x 7.3x 15.9x 14.3x 22.1x 19.2xZoopla 760 729 48.7% 4.0% 8.7x 7.7x 17.9x 14.5x 25.7x 20.3xMonster 346 457 15.2% (2.3%) 0.9x 0.9x 6.1x 4.8x 15.4x 9.8xDice 300 354 30.2% 3.4% 2.0x 1.9x 6.7x 6.1x 16.2x 13.3x


Chinese Internet LeadersTencent 104,295 102,867 44.2% 23.0% 10.3x 8.4x 23.4x 18.8x 31.7x 24.9xBaidu 46,877 43,872 29.8% 38.2% 6.2x 4.7x 20.8x 14.9x 26.8x 19.7xNetease 9,390 7,249 40.4% 27.9% 4.7x 4.0x 11.7x 9.7x 16.4x 14.3xYouku Tudou 2,196 1,334 0.3% 39.2% 2.3x 1.7x NM 10.9x NM NMSouFun 1,918 1,770 30.7% 18.6% 3.3x 2.8x 10.9x 8.1x 13.8x 10.8xSina 1,598 789 6.6% 17.7% 1.4x 1.1x 20.7x 7.4x NM 20.6xSohu 1,313 1,177 4.0% 23.5% 0.9x 0.8x 21.9x 6.7x NM 29.0xRenren 599 74 (94.6%) 13.1% 1.1x 1.1x NM NM NM NMDangdang 475 298 3.0% 24.0% 0.3x 0.2x 9.2x 4.9x 18.4x 9.8x


Online GamblingPlaytech 2,158 1,865 43.8% 6.2% 5.3x 5.0x 12.2x 11.3x 16.5x 15.3xBetfair 1,714 1,442 20.8% 2.0% 3.1x 2.9x 14.8x 13.8x 25.6x 22.9xbwin.party digital entertainmen 738 631 16.8% 7.0% 1.3x 1.2x 7.6x 6.9x 17.4x 15.7x888 567 497 15.1% 1.8% 1.7x 1.6x 11.0x 9.9x 19.2x 16.7x


Interactive EntertainmentElectronic Arts 11,575 10,083 28.1% 5.9% 3.5x 3.3x 12.5x 11.4x 22.8x 20.0xActivision 10,869 10,524 33.2% (8.3%) 3.7x 3.3x 11.0x 9.2x 19.7x 15.9xTake-Two Interactive Software 1,474 1,146 14.7% 22.4% 1.1x 1.0x 7.5x 6.3x 20.1x 12.1xZynga 1,355 762 0.4% 1.2% 1.7x 1.5x NM 18.1x NM NMUbisoft Entertainment 1,323 1,356 42.7% 2.0% 1.2x 1.1x 2.9x 2.5x 13.7x 12.2x


P / EEV / EBITDAEV / Revenue

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Energy & Power

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

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Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries

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HARRIS WILLIAMS & CO.

Capital IQ as of 23rd February 2015, broker reports and various industry news outlets

SOURCES


Harris Williams & Co. (www.harriswilliams.com and www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

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