Industry overview · Market 2021 US$ 302 billion CAGR : 12.9% CAGR : 2.8% CAGR : 1.3% Source:...

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Industry overview

Private & Confidential

11

Table Of Contents

01. Market Overview 3

02. Industry Update 8

03. CEE Region Overview 21

04. OPD Valuations 24

05. Appendices 27


2

▪ Increasing demand for software development activities driven by digital transformation and productdevelopment requirements leading to demand-supply imbalance for software talent- IDC estimated that in 2014, there were only 18.5m software developers worldwide, of which only 11m were professional developers

▪ Outsourced software development represents the fastest growth within the overall softwaredevelopment landscape- Established Outsourced Product Development (OPD) players have delivered super-normal growth over the years and are expected to

continue to deliver double-digit growth rates over the coming years- Requirements for specialist talent at the most cost-effective price points have been a major driver for the development of outsourcing

and led to the emergence of high-quality best-shored delivery setups

▪ CEE region with its strong engineering talent pool, has emerged as an attractive offshoring / near-shoring destination- Europe is an untapped market with ~75% of IT work done in-house providing significant potential for near-shoring- Ability to service European clients in local languages is a key strength of the CEE region

▪ The global OPD landscape is highly fragmented with only a handful of scaled-up, pure-play OPDplayers- Pure-play OPD players attract premium valuation reflecting the higher growth potential leading to a rapid de-multiplier effect- A long tail of small niche players with core competencies in next generation technologies and vertical-specific domain expertise offer

significant potential for consolidation

2Private & Confidential

4

US$

61billion

Total addressable R&D market(1)

2016

US$ 232 billion

US$

112 billion

US$

93billion

US$

107billion

US$

78billion

US$

83billion

2016 2021

Software

Embedded

Mechanical

Total addressable R&DMarket(1)

2021

US$ 302 billion

CAGR : 12.9%

CAGR : 2.8%

CAGR : 1.3%

Source: Zinnov Zones (R&D spend by Global 500 companies) GSPR 2016

Note: (1)Opportunity includes market for captives, Offshore R&D service providers and Onshore R&D service providers

▪ Currently, only US$85 bnof the market opportunity is addressed, up from US$67 bn in 2015

▪ Significant potential to bridge the gap between addressed and addressable market opportunity


5

39%

30%

10%

7%

4%

9%

Source: Zinnov Zones (R&D spend by Global 500 companies) GSPR 2016

Addressed ER&D marketUS$85bn (2016)

Outsourced ER&D spendUS$51bn (2016)

In-house Captive ER&D spendUS$34bn (2016)

17%

14%

20%

38%

6% 4%

India

China

Others

South Africa

Eastern Europe

Brazil

India

Rest of Asia

North America

Western Europe

Eastern Europe

Latin America

$34bn $51bn


6

Tier 1: Large

Revenue> US$ 500Mn

Tier 2: Mid Size

Revenue>: US$ 100Mn -US$ 500Mn

Tier 3: Emerging

Revenue < US$ 100Mn

▪ Comprises pure-play outsourced softwaredevelopment players and large diversifiedIT services providers

▪ Recently, ER&D majors (e.g. Alten, Altran)have been investing in this marketsegment

▪ Similar profile as Tier 1 players albeit with arelatively smaller revenue profile

▪ Pure play companies typically have highergrowth rates compared to peers

▪ Smaller players focusing on catering tocertain select verticals, geographies and/orservice lines

▪ Most are pure-play outsourced softwaredevelopment firms offering nicheproducts/solutions

Note: Logos mentioned in the pyramid are only a representative list and not exhaustive list of OPD service providers


https://www.globallogic.com/news-and-insights/news/

7

Company HQRevenue(USDm)(1)

Employee count

Delivery locations Key offering

1,160 22,383CEE, Kazakhstan, China, India, Mexico

Product Engineering, QA, Testing, Managed Services, Digital Marketing and UX, SMAC, IoT

786 13,090CEE, Latin America, South Africa, Mexico, Vietnam, Malaysia, UK

Product Engineering, ADM, QA, PLM, UX, Big Data, BI, Mobility, DevOps, Test Automation

~500 11,000CEE, India, Latin America, US, Canada, Israel

Product Engineering, Content engineering, Big data, Analytics, DevOps, IoT

452 8,887 India, US Product Engineering, UX Design

323 6,397 Latin America, India, Uruguay Software Development, Managed Services, SMAC, UX, IoT, Gamification

~200 4,500 CEEProduct Development, Product Management, QA, IoT, DevOps, Big Data, Digital Enterprise Consulting

~200 3,000CEE, India , US, Israel, Singapore

Product Engineering, Testing, QA, Digital Services, UI/UX, Analytics

~150 3,000 CEE, Spain, PakistanProduct Engineering, App Development, Testing, QA, DevOps, IoT, UI/UX, Biomedical Engineering

~125 2,200 India, UK, New Jersey Agile development services, Testing, QA, BI

~111 2,600 CEE, KazakhstanProduct Lifecycle Management, QA, Maintenance, Managed Services, Analytics, Digital Services, Mobility

~100 5,686 India , USProduct engineering, Testing, QA, UX Design, Digital advisory & Implementation services

Sources: Company annual reports, CapitalIQ, Avendus researchNote: (1)For the listed companies – full year reported revenue 7Private & Confidential

https://en.wikipedia.org/wiki/Flag_of_Argentina

9

Growth in demand for software development by Large Enterprises as opposed to just traditional ISVs

As complexity of projects increases, vertical focused knowledge will stand to gain

▪ Projects that affect business strategy, require deeper domain expertise as opposed to just technical expertise

▪ Ongoing shift towards a digital economy, explosive growth in SMAC are driving large enterprises to invest in development ofbespoke systems in order to remain competitive

Digital engagements and transformational work presenting a large opportunity for OPD service providers

▪ Shift towards disruptive digital technologies and complex transformational engagements requires a more consultative partner todesign and implement solutions

Limited talent-pool of skilled software developers leading to demand-supply imbalances

▪ Outsourcing of software development expected to continue growing for the foreseeable future▪ Scarcity of talent, cost pressures, shorter product lifecycles, faster product upgrades and faster time-to-market pressures continue

to drive the growth in outsourcing by enterprises / ISVs and the emerging start-up / SMB community

Established players expected to continue consolidating a highly fragmented landscape

2

1

3

4

5

▪ Inorganic growth is no longer an option, but a strategic imperative as established players seek capabilities, clients and scale


10Source: IDC - 2014 Worldwide Software Developer and ICT-Skilled Worker Estimates

Diagram is conceptual and not in proportion to the data

(entire pink oval)

18 m

~3.3 BnWorld’s Labor

Force

~1.3 BnWorld’s Students

ProfessionalSoftware

Developers

Hobbyists & Citizen

SoftwareDevelopers

AllICT-Skilled Workers

Total SoftwareDevelopers

ICT Operations & Management

Skilled Workers

(outside of circle)

(circle)

11 m

29 m

(entire blue oval)

18.5 m

(outside of circle)

7.5 m

~7+ BnWorld’s Population

1

▪ Tech talent has preferred challenging work at start-ups/ technology companies as opposed to in-house IT teams of enterprises

▪ The proliferation of software languages and frameworks adds substantially to the demand-supply complexity

Preferred employer hierarchy for software talent

Start Ups

Consumer Technology Companies

Enterprise Technology Companies/ Product Companies

IT Services Companies

In House IT Teams Of Enterprises

SMEs

Worldwide software developer and ICT-skilled worker estimates


11

17%

83%

Source: PWC – 2016 Global Innovation 1000 study

R&D spend by offering (US$bn)

232

188

86

280257

142

Product-based offerings Services offerings Software offerings

2010

2015

2010 2015 2020

Total R&D

Spend

Total R&D

Spend

Total R&D

Spend

Share of Software R&D within total R&D Spend (in % of total)

▪ As software increasingly defines product differentiation and customer experience, R&D spend on software has been growing significantly faster than R&D spend on services or product offerings (see right)

▪ Major R&D spenders outside the technology sector (e.g. Automotive, Financial Services, etc) are significantly contributing to Software R&D growth, and moving away from traditional product related R&D

▪ As a consequence, Software R&D spend is expected to constitute ~25% of the global R&D spend by 2020

▪ New technologies such as the Internet of Things as well as the Cloud are a catalyst for Software R&D spend for Enterprises

▪ To support the transition to software R&D, companies are increasingly focusing on recruiting data and software engineers as opposed to traditional employee profiles such as mechanical and electrical engineers

2


12

61.6%

3.5%6.2%

8.9%

3.6%

14.1%

2.1%

Sources: Company annual reports, IPO documents, Avendus research

Note: (1)2016 revenue split by verticals; (2)Luxoft’s FYE is March

25.2%

22.4%

20.5%

15.0%

9.1%

6.9%

1.1%

18.5%

19.6%

15.9%

21.0%

8.9%

13.1%

2.9%

EPAM(1) Globant (1)Luxoft (1)

(USD in millions) FY 2011 FY 2016 CAGR FY 2012 FY 2017 CAGR FY 2011 FY 2016 CAGR

ISV revenues 87.4 237 22.1% 29 49 10.7% 21 51 19.6%

% of Total revenues 26.1% 20.5% 10.8% 6.2% 23.3% 15.9%

Total revenues 334.5 1,160.1 28.2% 271.1 785.6 23.7% 90.1 322.9 29.1%

Others

Financial Services

Travel & Consumers

Software & HiTech

Media & Entertainment

Life Sciences & Healthcare

Emerging verticals

Travel & Aviation Financial

Services

Technology

Telecom

Automotive &Transport

Others

BFSI

Travel & Hospi-tality

Technology & Telecoms

Consumer, Retail & Mfg.

Media & Entertainment

Professional Services

Others

FY16ARevenues$1,160m

FY17ARevenues

$786m

FY16ARevenues

$323m

12

Healthcare

2


13Source: Equity research, corporate presentations and annual reports

Software, Hi-Tech, ISVs

▪ Capital markets & GRC▪ Asset & Wealth management▪ Corporate & retail banking▪ IB & brokerage▪ Research & analytics▪ Cards and payments▪ Block chain▪ Omni-channel banking▪ Regulations, compliance & risk

management

Financial services Travel & Aviation

Life Sciences & HealthcareMedia & Entertainment Automotive & transport

▪ Constant need for innovation & rapid time to market

▪ Improve utilization▪ Access to skills, not available in-house▪ Increase flexibility of technical employees ▪ Product Engineering▪ End-to-end solutions▪ User experience

▪ “Inside the cockpit” features e.g. infotainment and navigation, human machine Interface, autonomous driving

▪ “Under The Hood” features e.g. powertrain, chassis, motor, breaks

▪ “Extended vehicle” features e.g. cloud and diagnostics services connecting the vehicle to core business processes

▪ Accelerate creation, collection, packaging & management of content

▪ Digital video▪ Direct to consumer▪ Omnicommerce▪ Ad monetization analytics▪ Improve return-on-content

▪ Accelerate drug discovery, research & time to market

▪ Clinical & pre-clinical R&D platforms▪ Improved collaboration, knowledge

management & operational excellence▪ Big data and health analytics▪ Advanced health (genomics etc)

▪ E-commerce & cost optimization solns.▪ Transition from “personalized customer

service” to “customer self-service”▪ Growing concept of connected airplane

based on IoT technologies and on-demand infotainment

▪ Improved comfort & safety▪ Flight control systems, Aircraft assembly &

maintenance, airport mgmt

3


14Sources: Ericsson Mobility Report 2017, Statista, ‘State of Internet’ – 2014 by Mary Meeker

▪ Smartphone subscriptions are expected to grow from 3.9bn in 2016, to 6.8bn In 2022

- Average selling price of smartphones has declined from $440 in 2010 to $283 in 2016 with the trend expected to continue in the visible future

▪ Correspondingly, the number of connected devices are expected to grow from 16bn to 29bn over the same period

Devices, wearables& a connected

ecosystem

Big Data and analytics

▪ An estimated 8.8 Exabytes of mobile data traffic was generated in 2016; expected to grow to 71 Exabytes by 2022

- An estimated 34% of the data generated is useful but only 1% of it is analyzed in some form or other

BYOD and consumerization

of IT

User centric experience

▪ User centric internet has led to consumers demanding richer, more interactive experiences on websites and software applications

- Applying data mining technologies and predictive analytics to user’s browsing history to create a ‘Social Graph’ can enable enterprises to customize internet pages, optimize internet searches & tailor offerings

▪ As Bring Your Own Device (BYOD) grows, employees bring ‘Consumer market’ technologies in their workplace leading to consumerization of IT

▪ Employees expect the same experience and features from business applications

- Enterprises are adapting by upgrading legacy systems to offer new interfaces and modernize applications & processes with help of leading edge mobile, cloud, analytics and security capabilities

4


15Source: Nasscom – Shaping the digital revolution 2015

Notes: (1)Traditional technologies include custom ADM, SI, BPO, IMS, hardware, packaged software & telecom services(2)Digital technologies include social media, mobile applications, big data analytics, cloud (IaaS, SaaS, BPaaS) and cybersecurity

▪ Digital Business is becoming a strategic imperative for enterprises to

- Compete globally with differentiation advantage- Improve efficiency and effectiveness of business

operations

▪ Vertical-focused software development in sync with industry trends

- 41% of value of car contributed by software (connectivity, active safety, engine management, infotainment)

- 4-9x increase in engineering software in O&G (micro seismic analysis, production management, digital oilfield applications)

- 26% y-o-y growth in 3D printing software and cataloguing applications in discrete manufacturing industries

USD billions

2014 2020E 2025E

Traditional Digital

15-25% of traditional spend

saved by going digital

80% of new spend around digital technologies

- 450 to - 6502,757

1,170 to 1,400

3,440 to 3,550

3,950 to 4,100

60%30%

40%

35%

65%

80%

20%

10%

90%

15% - 25%

Traditional spend evaporates

New service lines

(1) (2)

4

CAGR : 3-4%


16Sources: Statista, We are Social, Gartner, EMC

$93bn2012

$104bn 2017

MobileSocial Analytics Cloud

+3% increase in mobile phone

users since last year

4.6 4.8

2016 2017

Number of mobile phone usersworldwide (in billions)

2.3

2.8

2016 2017

Active social media users (inbillions)

+21% increase in active social

media users since last year

4.4

44

2013 2020

Data (in zettabytes)

+39% Annual increase in digital

data we create or copy per year

209.2

246.8

2016 2017

Cloud Market (in USD billions)

+18% Increase of the Global Cloud market (in USD

billions)

4


17

‐

DATE ACQUIRER TARGETDEAL

VALUETARGET

HQTARGET DESCRIPTION STATED ACQUISITION RATIONALE / DESCRIPTION

PU

REP

LAY

OP

D A

CQ

UIR

ERS

Jun-17Up to $28m

Design and development tech agency with digital experts specialized in retail, supply chain and insurance services solutions

Reinforcing focus on digital transformation and expand US footprint

Mar-17 NAA digital services company specialized on video streaming solutions

Strategic acquisition to accelerate expertise in digital transformation and innovative software development in the media & entertainment sectors

Nov-16 NA A digital services companyAligned with Globant's unique vision of creating digital journeys, which involves creation of products that take into account each moment of interaction between the brand and the user

May-16 NA An innovative service design companyReinforce focus on digital journeys, digital transformation, strategy, user experience, design and insight

Jul-15 NA A digital strategy and experience design firmEnhance EPAM’s ability to provide digital consulting, architecture and content solutions to customers in North America and beyond

OFF

SHO

RE

SYST

EM

INTE

GR

ATO

RS

Nov-16 NAA experience design agency helping global brands design better, and more relevant, digital products and services for customers

Fortifies Zensar’s digital offerings and furthers the company’s ability to work with CMOs and CDOs to improve outcomes for their customers, and to drive innovation through design

Jun-16Up to£45m

Specialises in digital transformation and innovation, helping organisations change the way they engage with customers

Further strengthen and enable TechM to engage with clients at the start of the journey and help design customer experience for their businesses

Jul-15 $94mStrategic design firm specializing in designing transformative product-service experiences

Complement the capabilities of an established design leader with Wipro's engineering heritage and deliver compelling value to clients

Apr-15 $120mA provider of digital experience solutions, including mobile commerce and in-store shopping experiences to large retail clients

Acquisition in line with Infosys’ strategy to help clients bring new digital experiences to their customers through IP-led tech offerings, automation tools and skill and expertise in new emerging areas

GLO

BA

L P

LAY

ERS

WIT

H

OP

D C

AP

AB

ILIT

IES Feb-17 NA

A fast-growing digital strategy and experience design consultancy

Reinforce the Group’s user-centered and digital-first experience design and strategy services, particularly in North America, and helps address the growing demand end to end digital services

Nov-16 NADigital marketing and customer experience agency specializing in travel & hospitality, financial services, retail, and B2B sectors

Expand Cognizant's digital business capabilities in the Netherlands and across Europe

Feb-16 NA An innovation strategy and design firmAugments Capgemini Consulting’s ability to define new products, business transformation and digital customer experience solutions

Oct-16 NA UX and interactive design firmTo become a fully integrated end-to-end Digital Transformation Service (from strategy and UX through to the build and operation of the platform) that helps companies become digital businesses

Note: (1)Quotes by Arkadiy Dobkin, CEO – EPAM Systems Inc.

4


18

CRITICAL MASS

ACQUISITION OF VERTICAL-

SPECIFIC CAPABILITIES

M&A – a tool for value

creation

ACQUISITION OF TECHNICAL / LANGUAGE CAPABILITIES

PROXIMITY TO CLIENTS

NEAR-SHORING /

OFFSHORING

CLIENT ACQUISITION

▪ Scale enables companies to bid for larger client projects and hence is a key driver for consolidation in the OPD space

▪ Improves communication between clients and delivery teams, better cultural affinity, minimal time zone difference, increases efficiency, reduces complexity and execution risks

▪ Competitive pressures to deliver high quality service at optimum price points drives OPD players to constantly seek to acquire delivery capabilities in nearshore jurisdictions

▪ Diversification into a new vertical or enhancing vertical-specific delivery capabilities is an important driver of M&A activity and can also assist in client-acquisition

▪ Smaller OPD players can be attractive targets depending on their client profile

▪ Acquisition of clients or deepening existing client relationships is an important driver for M&A activity

▪ Established players efficiently use M&A as a tool to build capabilities be it technical or language

▪ Acquisitions help in quickly ramping up required skill-sets as against an organic build-out

5


19

IT SERVICESSOFTWARE ENGINEERING

SPECIALISTSER&D DIGITAL & MEDIA

CONSULTING FIRMS

FINANCIAL INVESTORS

Vary depending on size, location, equity stake and

other fund-specific

investment criteria

▪ Adding capabilities in product development and digital space

▪ Acquisition of marquee enterprise clientele and cross selling

▪ Capitalize on the superior growth rates (>20%) of the OPD segment (much higher than growth rates for other technology services segments)

▪ Revenue scale-up

▪ Diversify into or ramp up capabilities in specific verticals

▪ Adding capabilities in new technologies and digital space

▪ Need to diversify away from ISV exposure and into enterprise clients

▪ Geographical diversificationof delivery locations

▪ Extend the value chain from pure mechanical engineering services, to OPD

▪ Acquire nearshore oroffshore delivery centers

▪ Augment existing digital offerings with OPD capabilities to provide an end-to-end service offering

▪ Capture larger share of client’s wallet as decision making at clients becomes more centralized

▪ Good opportunity to enter a fast growing segment

▪ Opportunity to acquire marquee enterprise clientele

▪ Superiorgrowth and high margins attractinterest from both large international as well as local financial investors

5


http://brandingsource.blogspot.com/2017/03/csc-and-hpe-es-to-become-dxc-technology.html

20

KEY M&A TRANSACTIONSOPD M&A OVERVIEW

Date Target Buyers / Investors Acquirer Rationale

Nov-17 Aricent AltranEnhance Altran’s financial profile and client footprint, improve profitability and cash generation

Sep-17 Global Edge AltranReinforced software strategy and adds to geographical strength

Jun-17Tata Technologies

Warburg PincusFinancial Investor – target fast-growing markets and sectors

Jun-17 PointSource GlobantStrengthen Globant’s capabilities to build products for digital transformation

May-17 FDV Consulting Intive Expands business in America, especially in the US

Mar-17 derivIT Solutions Luxoft Expands capabilities in capital markets technology area

Jan-17 GlobalLogic CPPIBFinancial Investor – target fast-growing markets and sectors

Nov-16 L4 Globant Reinforces focus on digital services

Jul-16 Lohika AltranExpands Altran’s outsourced software development and their Industrialized GlobalShore delivery capabilities

Jun-16 Dextrys EPAMEnhances global delivery capabilities and extends footprint in China

Jan-16 REC Global GlobalLogic Expands European presence and strengthens embedded software capabilities

Dec-15 Ciklum Soros Fund Strategy of targeting fast-growing markets and sectors

Nov-15 Quest Global Bain Capital Strategy of targeting fast-growing markets and sectors

Sep-15 Mobica Inflexion Help accelerate organic growth

Sep-15Blue Star Infotech

InfogainBrings digital transformation platform with new capabilities

May-15 Rally CA TechnologiesComplements and expands CA’s strength in the areas of DevOps and Management Cloud

Jan-15Symphony Teleca

HarmanAdds scale in software services and gain capabilities around mobility, analytics, and cloud

Apr-14 Aditi Symphony TelecaAcquires unique Systems of Engagement (SoE) capabilities, design and cloud expertise

Jan-13 Globant WPPMinority Transaction (20%) – Strengthens WPPs capabilities

Jan-11 Sierra Atlantic HitachiAdditionnal offshore Global Development Centers and expand capabilities of Oracle business

▪ Attractiveness of the outsourced custom software development industry is at a peak level; primarily driven by the following market characteristics:

- Strong growth in the sector (strongest within outsourced R&D) due to high demand for agile development and niche software talent to deliver increasingly demanding and short time-to-market technology projects, for Enterprises and ISVs alike

- Acquisition of front-end capabilities for digital transformation, and UI/UX design

- Ongoing consolidation with strategic acquirers (both standalone and PE-backed) keen to acquire niche capabilities as well as larger teams to fulfil large work package projects

- Attractive financial performance of industry leaders with market leading growth and margins vs. other IT Services segments

- Low cost of debt available in the market place

▪ Thus M&A in this sector has seen the following:

- Upward trend in the volume and value of closed transactions in recent years

- Marquee Deals – CPPIB/Global Logic, Altran/Lohika, Harman/ Symphony Telelca, CA Technologies /Rally Software, and Bain Capital /Quest Global

- Continued interest from the Private Equity community – Cornerstone acquiring IT Kontrakt, EI acquiring Intive, Inflexion acquiring Mobica, Blackstone acquiring Pactera Soros acquiring Ciklum and Apax acquiring GlobalLogic

5


22

▪ CEE region is becoming an increasingly popular destination for near-shoring and a diversification alternative for Western European companies, as well as European divisions of large global companies

▪ Key benefits of near-shoring to the CEE region include –

- Minimal time zone difference vis-a-vis Europe, physical proximity to client and ease of travel

- Cultural affinity

- Easier to find European language capabilities such as French and German

- High-quality talent with strong technical skills

- Improved control over Intellectual Property (IP) within the over-arching umbrella of the EU

- Faster speed to market

- General economic / political stability across the region

▪ Governments have moved to attract investments through setting up technology parks, providing financial incentives and by promoting STEM subjects in universities

Estonia

Belarus

Ukraine

Poland

Czech Republic

Slovakia

HungaryRomania

Bulgaria

Slovenia

Croatia

Albania

Bosnia

MacedoniaMontenegro

Serbia

Moldova

Russia

Lavtia

Lithuania


23

CountryPopulation (in millions)

2016

% Tertiary education 2016(3) EU / Non-EU

Employment in BPO

Rent / m² / month(1)

Avg. entry level cost / annum(2)

Major HubsGlobal IT Players with presence in

CEE

Belarus Estimated ~33% Non-EU N/AMinsk:€16-€28

$19k – $24kBelarus Hi Tech Park (Minsk)

EPAM, Exadel

Bulgaria EU 18,900Sofia:€11-€13

$21k – $26k SofiaCSC, SAP, HP, Convergys, VMware

Czech Republic

EU 40,500Prague:€13.2-€19.4

$25k – $30kPrague, Brno, Ostrava

Accenture, CSC, HP, SAP, Redhat, IBM, Infosys

Hungary EU 45,400Budapest:€12.8-€18

$24k – $29kBudapest, Debrecen, Székesfehérvár

EPAM, Cognizant, TCS, IBM

Poland EU 150,000

Warsaw:€18-€22.5Wroclaw:€14-€15.5

$22k – $27kWarsaw, Krakow, Tri-city, Lodz, Wroclaw

Sabre, Capgemini, HCL, Luxoft, Xerox

Romania EU 50,900Bucharest:€14.5-€18

$23k – $28kBucharest, Cluj, Iasi, Timisoara, Brasov

Accenture, Capgemini, Genpact, HP, Luxoft, Wipro, WNS

Russia N/A Non-EU N/AMoscow: €10-€15

$12k – $20kMoscow, St. Petersberg, Kazan,Nizhny Novgorod

EPAM, Luxoft, IBM, Oracle, Microsoft

Ukraine N/A Non-EU N/AKyiv: €12.6-€25.2

$18k – $24k Lviv, Kyiv, KharkivCisco, Oracle, Rakuten, Samsung

28%

15%

22%

12%

22%

Sources: Association of Business Service Leaders (Business Services in Central & Eastern Europe – 2015Notes: (1)Colliers EMEA Office Rents 2016; Russia’s data from realty.kurs-kotirovka.ru

(2)Represents the Software Development Employee Cost per Annum – <5 yrs experience; Russia’s data from software-russia.com(3)Represents the % people who have completed their tertiary education between age groups of 15 to 64 years

43

144

20

38

10

11

7

10


25

Size and growth profile

▪ Ability to sustain larger employee strength is indicative of resilience, quality of service & revenue recurrence

▪ Although large pureplay OPD players such as EPAM, Luxoft and Globant attract premium valuation multiples vis-à-vis peers, when adjusted for anticipated revenue / margin growth, the multiples tend to be benign

Revenue / Customer profile

▪ Stable, long-term relationships with top customers, lower client concentration and multi-year SLA-based services contracts (as against project based revenues)

▪ Low level of dependence on ISV / Start-up clients (typically involving short-term project based work)

- EPAM has a stated objective of maintaining ISV revenue in the range of 20% of its total revenues

Historical financials & forecasts

▪ Demonstrated historical growth and attractive forecasts backed by secure customer-specific revenues

▪ Stable margin with well controlled base of direct and indirect costs

Delivery Centres / Geography ▪ Geographies with lower employment cost and high talent availability, while maintaining reasonable levels of wage inflation, are

preferred delivery locations as this criteria is an important contributor to margin profile

Profitability & margin profile ▪ Ability to generate a recurring and stable level of profitability in line with the market (~15%-20% EBITDA)

Quality of management team ▪ Experience, reputation and market-perception of management team

Type of customer engagement▪ Critical outsourced teams well integrated into client teams vs. fully outsourced

▪ Basic IT services and T&M versus delivering fully outsourced software engineering projects

Business Model

▪ Pure Time & Material (primarily utilization driven) vs.

▪ Packaged (Team-based) T&M vs.

▪ Fixed Price Projects (primarily outcome-based)

Employee Metrics▪ Utilization rates (for T&M business)

▪ Attrition % (increasingly important metric as Attrition Rates increase across delivery locations)


26

Transaction / Size Discount

EV / REVENUE INDUSTRY AVERAGES – 2018E EV / EBITDA INDUSTRY AVERAGES – 2018E

REVENUE GROWTH AVERAGES (%) – 2017-18E EBITDA MARGIN AVERAGES (%) – 2018E

Transaction / Size DiscountTrading valuation

Transaction valuation

Trading valuation

Transaction valuation

26

Source: CapIQ as of 08 January 2018Notes: 1. Outsourced Software development companies include EPAM, Luxoft, Globant and Persistent

2. Diversified Global IT companies include TCS, Cognizant, Infosys, Wipro, Capgemini, HCL and Atos3. Diversified Offshore IT companies include Tech Mahindra, L&T Tech Services, Mindtree, Virtusa, Cyient, KPIT and Sonata Software4. ER&D companies include Altran, Alten, ÅF AB, Bertrandt, Akka Technologies, L&T Tech, Cyient and Tata Elxsi

1.6x

2.5x2.2x

1.3x 1.3x

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8.7x

14.7x

10.7x 10.2x11.1x

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&D

19.4%

8.4% 8.8%6.6%

Outsourced SoftwareDevelopment

Diversified Global ITwith OPD angle

Diversified OffshoreIT with OPD angle

ER&D

16.7%

21.7%

10.7% 11.3%

Outsourced SoftwareDevelopment

Diversified Global ITwith OPD angle

Diversified OffshoreIT with OPD angle

ER&D


27

Trading Multiples

Transaction Multiples

Avendus deal case studies

OPD players – profiles

Avendus Credentials


2929

Company MV EV Revenue EBITDA EV / Sales EV / EBITDA P/E EBITDA margin (%) Rev. growth (%)

(USDm) (USDm) 2017E 2017E 2017E 2018E 2019E 2017E 2018E 2019E 2018E 2019E 2018E 2019E 2018E 2019E

Outsourced Software Development

EPAM 6,157 5,669 1,448 258 3.9x 3.2x 2.7x n/m 17.7x 14.8x 26.5x 22.0x 18.2% 18.0% 21.7% 20.4%

Luxoft 2,017 1,962 889 132 2.2x 1.9x 1.6x n/m 11.7x 9.6x 17.0x 13.8x 16.0% 16.4% 18.2% 18.6%

Globant 1,684 1,648 407 65 4.0x 3.4x 2.8x n/m 19.8x 17.2x 29.8x 24.2x 17.0% 16.4% 20.6% 19.0%

Persistent 904 789 481 74 1.6x 1.5x 1.3x 10.6x 8.8x 7.6x 15.4x 13.5x 16.4% 17.0% 12.8% 12.5%

Median 1,851 1,805 685 103 3.1x 2.5x 2.1x n/m 14.7x 12.2x 21.8x 17.9x 16.7% 16.7% 19.4% 18.8%

Diversified Global IT with OPD angle

TCS 81,861 76,741 19,125 5,119 4.0x 3.7x 3.4x 15.0x 13.8x 12.7x 18.7x 17.2x 26.8% 26.9% 8.4% 8.7%

Cognizant 43,427 39,465 14,804 3,052 2.7x 2.4x 2.2x 12.9x 11.2x 9.7x 16.8x 14.6x 21.7% 23.1% 9.4% 8.9%

Infosys 35,497 30,065 10,892 2,925 2.8x 2.5x 2.4x 10.3x 9.5x 8.8x 15.2x 14.1x 26.8% 26.7% 8.5% 7.9%

Wipro 23,786 20,063 8,651 1,763 2.3x 2.2x 2.1x 11.4x 10.7x 10.0x 16.3x 15.2x 20.7% 21.0% 4.6% 5.8%

Capgemini 20,824 23,408 15,224 2,054 1.5x 1.5x 1.4x 11.4x 10.7x 9.8x 16.3x 14.9x 14.0% 14.6% 3.1% 4.3%

HCL 19,763 18,761 7,709 1,710 2.4x 2.2x 2.0x 11.0x 9.9x 9.1x 13.6x 12.7x 22.2% 22.1% 11.3% 8.9%

Atos 15,920 16,152 15,204 2,023 1.1x 1.0x 1.0x 8.0x 7.7x 7.2x 14.2x 13.1x 13.4% 13.9% 2.9% 2.9%

Median 23,786 23,408 14,804 2,054 2.4x 2.2x 2.1x 11.4x 10.7x 9.7x 16.3x 14.6x 21.7% 22.1% 8.4% 7.9%

Diversified Offshore IT with OPD angle

Tech Mahindra 8,372 7,291 4,762 688 1.5x 1.4x 1.3x 10.6x 9.3x 8.3x 14.2x 13.1x 15.2% 15.6% 8.8% 9.3%

Mindtree 1,636 1,550 845 105 1.8x 1.7x 1.5x 14.7x 12.6x 10.8x 20.1x 17.6x 13.3% 13.9% 10.0% 11.1%

Virtusa 1,385 1,448 968 68 1.5x 1.3x 1.2x 21.2x 15.4x 12.1x 23.4x 18.6x 8.6% 9.8% 13.1% 11.7%

KPIT 613 578 558 56 1.0x 1.0x 0.9x 10.3x 8.9x 8.6x 15.1x 13.6x 10.7% 10.5% 8.4% 5.9%

Sonata Software 449 409 376 35 1.1x 1.0x 0.9x 11.8x 10.2x 9.6x 15.4x 13.8x 10.0% 8.9% 7.2% 17.9%

Median 1,385 1,448 845 68 1.5x 1.3x 1.2x 11.8x 10.2x 9.6x 15.4x 13.8x 10.7% 10.5% 8.8% 11.1%

ER&D

Altran 3,047 3,507 2,726 315 1.3x 1.2x 1.2x 11.1x 9.9x 8.9x 14.3x 12.8x 12.2% 12.9% 6.3% 5.1%

Alten 2,991 2,970 2,331 236 1.3x 1.2x 1.1x 12.6x 11.1x 10.4x 16.8x 15.4x 10.7% 10.9% 6.6% 5.2%

ÅF 1,868 2,090 1,538 139 1.4x 1.3x 1.2x 15.0x 13.0x 12.2x 17.3x 16.1x 9.9% 10.1% 5.6% 4.5%

L&T Tech Services 1,850 1,807 554 89 3.3x 2.9x 2.5x 20.3x 17.4x 14.9x 23.9x 21.3x 16.5% 17.1% 13.6% 13.0%

Bertrandt 1,309 1,400 1,199 119 1.2x 1.1x 1.1x 11.8x 9.9x 8.9x 20.0x 17.8x 11.3% 12.0% 4.5% 4.5%

Akka 1,180 1,429 1,570 135 0.9x 0.9x 0.8x 10.6x 8.9x 8.0x 14.1x 12.3x 9.7% 10.3% 5.1% 4.9%

Cyient 1,036 909 601 83 1.5x 1.3x 1.2x 11.0x 9.2x 8.0x 14.5x 12.9x 14.6% 15.0% 12.4% 12.1%

Tata Elxsi 983 932 212 50 4.4x 3.8x 3.6x 18.8x 16.0x 16.0x 26.7x 23.5x 23.8% 22.3% 15.6% 7.0%

Assystem SA 727 819 484 37 1.7x 1.6x 1.5x 22.1x 19.9x 17.9x 16.5x 14.3x 7.9% 8.4% 7.6% 4.3%

Median 1,309 1,429 1,199 119 1.4x 1.3x 1.2x 12.6x 11.1x 10.4x 16.8x 15.4x 11.3% 12.0% 6.6% 5.1%

Median 1,868 1,962 1,448 135 1.6x 1.5x 1.4x 11.6x 10.7x 9.7x 16.5x 14.6x 14.6% 15.0% 8.5% 8.7%

Max 81,861 76,741 19,125 5,119 4.4x 3.8x 3.6x 22.1x 19.9x 17.9x 29.8x 24.2x 26.8% 26.9% 21.7% 20.4%

Min 449 409 212 35 0.9x 0.9x 0.8x 8.0x 7.7x 7.2x 13.6x 12.3x 7.9% 8.4% 2.9% 2.9%

Source: All projections have been calculated based on Capital IQ as at 08 January 2018

Current FYE has been taken to be December 2016 Private & Confidential

31

Date Target HQ Target Business Description

Transaction Value

(USDm)Buyers / Investors

LTM Revenue(USDm)

LTM EBITDA(USDm)

Implied Enterprise

Value (USDm)

Implied Enterprise Value/LTM

Revenue


EBITDA

Nov-17Design and engineering services, primarily serving clients of the communications and technology, semiconductor and software industries

2,018 582.6 140.7 2,018 3.5x 14.3x

Sep-17Product engineering company specialized in IoT connectivity and embedded software

47 n/a n/a n/a n/a n/a

Jul-17iNTENCE automotive electronics GmbH develops software solutions for the automotive industry.

$8m n/a n/a n/a n/a n/a

Jun-17Clarity Consulting designs, develops, customizes, and implements enterprise software applications for businesses.

$9m $27.0m n/a $9m 0.35x n/a

Jun-17PointSource designs and develops transformative digital solutions for the retail, supply chain, and insurance sectors.

$28m n/a n/a $28m n/a n/a

Sources: Capital IQ, Mergermarket


32


Transaction Value


LTM Revenue(USDm)

LTM EBITDA(USDm)

Implied Enterprise

Value (USDm)


Revenue


EBITDA

Jun-17Provider of engineering services outsourcing, product lifecycle management software solutions, and enterprise resource management services

$360m 225 n/a 837 3.7x n/a

May-17 FDV Solutions designs and develops software solutions. n/a n/a n/a n/a n/a n/a

Apr-17Smile provides open source solutions to companies and institutions in France and internationally.

$51m $81.7m n/a n/a 1.33x n/a

Apr-17IT Kontrakt specializes in outsourcing of IT specialists who carry out projects related to development and implementation of modern technologies for business.

$38m $50.0m n/a $39.8m n/a n/a

Apr-17 Difier S.ADifier provides information technology support services as wells develops software products.

n/a n/a n/a n/a n/a n/a

Mar-17derivIT provides information technology consulting services to the capital markets technology area across Singapore, Malaysia, Australia, the Middle East, India, and China.


Mar-17 Ratio Interactive provides digital agency services for brands. n/a n/a n/a n/a n/a n/a

Feb-17Intropro provides product development, engineering, and software development consulting services.




https://en.wikipedia.org/wiki/Flag_of_France

33


Transaction Value


LTM Revenue(USDm)

LTM EBITDA(USDm)

Implied Enterprise

Value (USDm)


Revenue


EBITDA

Jan-17GlobalLogic provides full-lifecycle product development services to customers worldwide (undisclosed minority stake)

$720.0m $450m n/a $1,500m 3.33x 16.7x

Nov-16L4 Mobile provides digital products consulting, design, development, and quality assurance services worldwide.


Oct-16Butler America Aerospace provides engineering, IT, BPO, application development, staffing, health care, and fleet services for aerospace, defense, and federal markets in the United States.

$85m $85.4m n/a $85m 1.00x n/a

Oct-16Pactera Technology provides consulting and technology services in the People’s Republic of China.

$675m $777m n/a n/a n/a n/a

Sep-16Pelagicore develops and licenses open source software applications in automotive infotainment industry.

$19m $6.4m ($0.6m) $19m 3.00x n/m

Aug-16Softline Group engages in software licensing and provision of IT services to customers in various industries worldwide.

$40m n/a n/a n/a n/a n/a

Jul-16 Lohika Systems provides software development services. n/a $50.0m n/a n/a n/a n/a

Jul-16Excelian is a technology consultancy that provides technology and IT services to financial services and commodities industries.

$21m $58m $2 m $21m 0.40x 10.4x

Jul-16INSYS develops specialized solutions with a primary focus on the healthcare, pharmaceuticals & biotech, and telecom sectors.


Jun-16 Dextrys provides software engineering and application services. n/a n/a n/a n/a n/a n/a



34


Transaction Value


LTM Revenue(USDm)

LTM EBITDA(USDm)

Implied Enterprise

Value (USDm)


Revenue


EBITDA

Jun-16Estonia-based company that operates as a software development company.

$17mEmployees of Nortal

$51.0m $4m $34m 0.70x 8.1x

Jun-16Softvision Consulting provides outsourced software development services to startup companies and Fortune 500 companies worldwide.

$150m $60m $17m $150m 2.50x 8.6x

May-16We Are London operates as a customer experience and service design consultancy.


Apr-16Geometric provides software and engineering services primarily in India, the United States, Europe, and the Asia Pacific.

$192m $173m $16m $192m 1.11x 11.8x

Feb-16Symtavision provides timing-analysis solutions for processors, control-units, buses, and integration for the automotive and consumer electronics markets.


Feb-16Acamica operates as an online, web, and mobile microlearning platform.


Jan-16REC Global is a software engineering company providing R&D software services, custom software solutions and consultancy expertise to companies across the globe.


Dec-15 QuEST Global Services is an engineering services company. $325m n/a n/a $1,300m n/a n/a

Nov-15Ciklum ApS operates as an information technology (IT) outsourcing company specializing in nearshore software development in Ukraine.


Nov-15Alliance Global Services LLC provides software design, development, and quality management services.


(Certain Assets)



35Sources: Capital IQ, Mergermarket


Transaction Value


LTM Revenue(USDm)

LTM EBITDA(USDm)

Implied Enterprise

Value (USDm)


Revenue


EBITDA

Oct-15Königstein Beratungsgesellschaft für EDV-Dienstleistungen Mbhprovides IT recruitment services.


Sep-15Mobica provides software development and integration services. including UI / UX, QA, testing, and professional engineering services.


Sep-15Blue Star Infotech is a global provider of product development services, enterprise solutions and services, travel technology solutions and testing services.

$32m $42m $5m $37.6m 0.89x 7.4x

Jul-15NavigationArts provides Web and application design and development consulting services.


May-15Rally Software provides cloud-based solutions for the management of Agile software development worldwide.

$539m $93m ($28m) $471m 5.09x n/m

May-15Clarice Technologies designs and develops various software products on desktop, Web, tablet, smartphones, and TV platforms by using the latest technologies and frameworks.

$20m $8m $3m $20m 2.60x 7.9x

Mar-15Bluestar Energy

Peru Bluestar Energy (n.k.a Globant Peru) develops software solutions. $1m n/a n/a $1m n/a n/a

Jan-15Symphony Teleco Corporation Connected Services Corporation provides software services for the connected world.

$780m $370.0m n/a $780m 2.11x n/a


37

TRANSACTION HIGHLIGHTS

▪ Announced: Jan 2018

▪ Consideration: Undisclosed

▪ Multiples: Undisclosed

▪ Offer: All-cash

▪ Engagement type: Sell-Side

▪ Sector: Product Engineering Services

▪ Avendus role: Advisor to eInfochipsC

LIEN

T TH

ESIS ▪ eInfochips was looking to partner with a global major to diversify its client base, mine its existing marquee client base

and to monetise its investments in software platforms for connected devices

▪ Opportunity for the promoter and long term employees of the company (beneficiaries of an ESOP plan) to get liquidity

RES

ULT

▪ A very selective and refined outreach was undertaken to ensure discussion with probable buyers

▪ Five serious suitors - three strategic and two private equities players

▪ Strong conviction that the selected partner offered significant synergies for future growth of the company

AV

END

US

RO

LE

▪ Ran a tight, controlled auction process with only a handful of very probable potential suitors

▪ Prepared the company, well in advance, by way of completing a financial, tax and legal VDD prior to launch of deal; advised on various structuring aspects of a complex cross-border transaction, including a tender offer in the US for minority shareholders

▪ Managed to conclude the entire deal, from marketing to closing, in a short-timeframe of 6 months

acquired

Advisor to eInfochips

DEA

LR

ATI

ON

ALE ▪ By joining Arrow, eInfochips becomes part of a Fortune 118 company with a global reach in 90 countries and a long-

standing commitment to guiding innovation in the sphere of connected devices

▪ The combined entity plans to deliver complex and connected IoT solutions and technologies across multiple cloud platforms to their complementary client base and using synergistic delivery locations

TARGET PROFILEACQUIRER PROFILE

▪ Arrow Electronics Limited is an NYSE listedFortune 118 company specialising in distributionand value added solutions to users of electroniccomponents and enterprise computing solutions

▪ Has made a decisive push to undergo a digitaltransformation in the last 2 years▪ Arrow.com is their fastest growing channel▪ Is one of the largest technology media

companies in the world▪ Strong focus on IoT – with its patented sensor-

to-sunset offering

▪ Founded in 1995, eInfochips has over 1,500employees spread across India, US and Japan,offering OPD services encompassing silicondesign & verification services to software productdevelopment services to large Fortune 500companies

▪ Strong focus on IoT, video management andcloud based services

Undisclosed


38

TRANSACTION HIGHLIGHTS

▪ Announced: July 2016

▪ Consideration: Undisclosed

▪ Multiples: EV/LTM sales: Undisclosed

EV/LTM EBIT: Undisclosed

▪ Offer: All-cash

▪ Engagement type: Sell-Side

▪ Sector: Outsourced Software Development

▪ Avendus role: Advisor to Lohika

CLI

ENT

SITU

ATI

ON

▪ The shareholders of the company were looking for a strategic partner to grow their US presence on the back of large clients and thereby scale up their revenue profile by delivering a broader range of service offerings

RES

ULT

▪ Evaluated and pre-marketed to a large number of prospective buyers in the US, Europe, India as well as a number of Global Private Equity

▪ Received multiple indications of interest from both strategic and private equity buyers

▪ Successful negotiation of transaction documentation on terms satisfactory to the client

AV

END

US

RO

LE

▪ Avendus ran a competitive process with over 100 investors, of which 15-20 had management meetings resulting in multiple offers. Investors included both international and domestic strategic players and top-tier sponsors

▪ Avendus ran an efficient two stage deal process and seamlessly coordinated a globally distributed deal team across the US (both West and East coast), Europe (France, Ukraine and Romania) and India

acquired

Advisor to Lohika

DEA

LR

ATI

ON

ALE ▪ The combination of Lohika with Altran will create a superior value proposition, enabling the Group to reach a

leadership position in software product development on the US West Coast

▪ The USA becomes the second largest region for Altran

▪ Lohika will expand and diversify Altran’s Industrialized GlobalShore© delivery capabilities

TARGET PROFILEACQUIRER PROFILE

▪ Altran Technologies offers engineering consulting services for the creation and development of new products and services in France and internationally

▪ The company provides various services in the areas of intelligent systems, innovative product development, lifecycle experience, mechanical engineering, and information systems

▪ Founded in 2001, Lohika is a premium software engineering services firm whose highly experienced teams provide s/w development solutions to leading technology companies

▪ Lohika is active in North America with experienced delivery teams in Ukraine and Romania comprising of 700+ software engineers

▪ Customers range from technology majors to fast growing start-ups which are 100% reference-able

Undisclosed


39

▪ Announced: January 2016

▪ Consideration: $27m


▪ EV/LTM EBIT: Undisclosed

▪ Offer: All-cash

▪ Engagement type: Sell-side

▪ Sector: Outsourced software development

▪ Avendus role: Advisor to Blue Star Infotech

▪ Infogain provides front-end, customer-facingtechnologies, processes and applications that leadto a more efficient and streamlined customerexperience for enterprises across the globe

▪ Infogain is backed by Private Equity houseChrysCapital, a major Indian Private Equity housewith ~$3bn assets under management

▪ A technology consulting and services companywith 30+ years of full life cycle product engineeringexperience with 30+ customers served in TMTsector

▪ Strong focus on travel and hospitality segmentsand deep domain expertise in the hospitalitysector; developing a foothold into attractiveadjacent segments like payments and loyalty

CLI

ENT

SITU

ATI

ON

▪ Blue Star Infotech’s (BSIL) parent company, the Blue Star Group, was looking to sell off the non-core IT business andmerge the residual real estate business of BSIL back with the Blue Star

RES

ULT

▪ The conclusion of the process ended with 2 formal bidders, one US-based and one European

AV

END

US

RO

LE

▪ Avendus originated the idea of double flip as a white paper to Chrys Capital. As a part of this transaction, Chrys Capitalacquired Infogain first and then Infogain acquired the IT business of Blue Star Infotech

▪ Team successfully helped with complex structuring process involving a slump sale for a listed company

▪ Negotiated management incentive plan and aligned incentive of entrepreneur, management & other shareholders

acquired

Advisor to Blue Star Infotech

DEA

LR

ATI

ON

ALE ▪ The combined entity will have revenue of over $150 million, close to 4,000 employees and multiple global delivery

centres

▪ It will provide customers with digital transformation platform with capabilities in cloud, mobility, SAP, analytics, productengineering and test automation from locations in the US, the UK, Middle East, Singapore, Malaysia and India

$27m

TARGET PROFILETRANSACTION HIGHLIGHTS ACQUIRER PROFILE


40

TARGET PROFILETRANSACTION HIGHLIGHTS ACQUIRER PROFILE

▪ Announced: December 2014

▪ Consideration: $74m


▪ EV/LTM EBIT: 10.5x

▪ Offer: All-cash

▪ Engagement type: Sell-side

▪ Sector: Outsourced software development

▪ Avendus role: Advisor to Aditi

▪ Symphony Teleca Corporation provides softwareproduct development, big data integration andanalytics services to ISVs, mobile and connectedsystems OEMs, and enterprises in all key verticals

▪ In April 2015, Symphony Teleca was acquired byHarman International

▪ A focused platform of scale in the outsourcedsoftware development segment with a favourableposition vis-à-vis competition

▪ Robust India-based offshore platform with over 10years of experience developing solutions forleading ISVs in a global delivery model, givingclients tangible economic benefits

▪ Significant business potential from ISVs/ ProductCompanies seeking migration to .NET platforms

CLI

ENT

SITU

ATI

ON

▪ Aditi Technologies had reached a certain revenue size and was looking to scale up its operations through a partnershipwith a global major

RES

ULT

▪ The conclusion of the process ended with 2 formal bidders, one US-based and one India-based

AV

END

US

RO

LE

▪ Worked closely with final counterparties to close out on most commercial, legal and structuring aspects of the dealprior to the selection of the final bidder and awarding exclusivity to ensure smooth process execution

▪ Demonstrated resilience and perseverance by ensuring both parties stay interested and committed to consummatingthe deal, over a lengthy deal execution cycle

DEA

LR

ATI

ON

ALE ▪ With this acquisition, STC extends its leadership in innovation to drive clients’ revenue growth by being able to uniquely

deliver Systems of Engagement (SoE)

▪ Aditi will serve as a strategic growth lever for STC through its design and cloud expertise, complementing STC’sengineering, mobile and analytics capabilities

acquired

$74m

Advisor to Aditi


42

$0.7bn$0.9bn

$1.2bn$1.4bn

$1.8bn

15.7% 15.5% 14.7%17.8% 18.2%

Dec-14 Dec-15 Dec-16 Dec-17E Dec-18ERevenue EBITDA margin, %

Sources: Capital IQ, Company website, One Source, Avendus Research

Professional Professional Title

Dobkin, Arkadiy CEO & President

Conte, Anthony Advisor

Peterson, Jason CFO

Shekhter, Elaina CMO

Fejes, Balaz Co-Head Global Business

Global provider of software product engineering, technology consulting and digital expertise

Investors

▪ EPAM is a global provider of software product engineering, technology consulting and digital expertise. Itsofferings include:

− Software Product Development: Product research, customer experience design and prototyping,program management, component design and integration, full lifecycle software testing, productdeployment, managed services, as well as porting and cross-platform migration

− Custom Application Development Services: Includes user experience design, component design andintegration, quality assurance and testing and legacy apps reengineering/refactoring

− Application Testing Services: Include software application testing; testing for enterprise IT, as well asdefect management; and consulting services

− Enterprise Application Platforms: Services in the areas of ERP, CRM, content management, businessintelligence, e-commerce, mobile, SaaS, and cloud deployment

− Application Maintenance and Support: Includes incident management, fault investigation, applicationbug fixes, release management, application enhancements & 3rd-party maintenance

− Infrastructure Management Services: End-to-end management services across network management,database, servers etc.

Corporate Information

Business Description

Board & Management

Financials (in USDm)

Rev by Geography

Headquarters Newtown, USAFounded 1993Number of Employees 22,383Reporting Currency USDRevenue $1.2bn (FY16)EBITDA $170m (FY16)Market Cap $6.2bn (08/01/2018)

Clients

CAGR 25%

Rev by Industry

Morgan Stanley Investment Management 8.7%

The Vanguard Group 7.7%

Fmr Llc 6.2%

Blackrock 5.8%

J.P. Morgan Asset Management 5.8%

Massachusetts Financial Services 4.0%

$1.2bn(FY16) 58%

36%

4%

2%

North America

Europe

CIS

APAC

$1.2bn(FY16)




Peterson, Jason CFO



42

25%

23%21%

15%

9%7%

Financial Services

Travel &ConsumerSoftware & Hi-TechMedia & Ent.

Healthcare

Emerging Verticals


43Sources: Capital IQ as of 08 January 2018 Company website, One Source, Avendus Research 43

The Company has grown significantly through numerous acquisitions in 2014 and 2015

--

3

6

9

12

--

20

40

60

80

100

120

Feb-12 Dec-12 Oct-13 Aug-14 Jun-15 May-16 Mar-17 Jan-18

Vo

lum

e in m

illion

s

Shar

e P

rice

in $

(re

bas

ed t

o E

PA

M)

Volume traded EPAM S&P 500

8 February 2012:Announced its IPO of 6.0m shares at $12.0 per share

23 May 2012:Acquired Toronto-based Thoughtcorp, a IT Consultancy and Software Solution Provider

18 December 2012:Acquired Empathy Lab, a digital strategy and multi-channel experience design firm

20 March 2014:Acquired New York-based Netsoft USA, a healthcare technology consulting firm

30 April 2014:Acquired China-based services firm Jointech

31 October 2014:Acquired Great Fridays, a UK-based product and service design group

16 November 2015:Acquired Alliance Global Services, a US-based software product development services firm

6 June 2014:Acquired GGA Software Services, a US-based healthcare & life sciences service provider

13 July 2015:Acquired NavigationArts, a US-based a digital strategy and experience design firm

22 June 2016:Acquired Dextrys, a China-based global provider of software engineering and application services

104%

691%

14.0

02 November 2017:Reports Q3 Sep 2017 results.Revenue up 26.6% y-o-yAdj. EPS up 7.9% y-o-y


44

62%14%

9%

6%9%Financial Services

Automotive

Telecom

Technology

Other

34%

30%

27%

5%3%1%

North America

Europe (excl. UK)

UK

Russia

APAC

Other

Sources: Capital IQ, Company website, One Source, Avendus Research




Peterson, Jason CFO



Global Provider Of High-end Vertical Focused Software & Product Solutions

Investors

▪ Luxoft is a provider of software development services and innovative IT solutions to a global client base ofmore than 150 clients

▪ The company has Centers of Expertise (CoE) dedicated to R&D of each vertical focused domain practice. Itsofferings include:

− Financial Services: Upgradation of systems & processes for regulatory & reporting purposes, riskmanagement, data centralization, mobile technologies, transformation of internet based services

− Automotive and Transport: Solutions in fuel efficiency, EVs, infotainment, human-machine interfaces,ADAS and connected cars

− Travel and Aviation: Mobile based application development, big data processing, analytics, visualization,mobile booking systems, in-flight entertainment

− Technology: Product engineering that cover entire technology stack – services mainly in the area of IoT,embedded software, media processing algorithms, cloud based services and mobile apps

− Telecom: Services offered in the areas of Software Defined Networking (SDN) and Network FunctionVisualization (NFV)

− Energy: Services in the areas of green/renewable technologies; solutions for operational efficiency



Board & Management


Rev by Geography

Headquarters Zug, SwitzerlandFounded 2000Number of Employees 13,090Reporting Currency USDRevenue $785.6m (FY17)EBITDA $133.8m (FY17)Market Cap $2.0bn (08/01/2018)

Clients

CAGR 20%

Rev by Industry

$786m(FY17)

$786m(FY17)


Loschinin, Dmitry CEO & President

Fetisov, Evgeny CFP

Friedland, Michael COO

Ziabkina, Natasha General Counsel

Plaia, Alina VP

Fmr LLC 6.6%

Wasatch Advisors 5.1%

Morgan Stanley Investment Management 4.0%

M&G Investment Management 3.4%

Blackrock 2.6%


44

$0.5bn$0.7bn

$0.8bn$0.9bn

$1.1bn

19.0% 19.0% 17.0% 15.6% 16.0%

Mar-15 Mar-16 Mar-17 Mar-18E Mar-19ERevenue EBITDA margin, %


45Sources: Capital IQ as of 08 January 2018, Company website, One Source, Avendus Research 45

The Company has seen significant growth primarily through strategic acquisitions

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Jun-13 Feb-14 Oct-14 Jun-15 Jan-16 Sep-16 May-17 Jan-18

Vo

lum

e in m

illion

s

Shar

e P

rice

in $

(re

bas

ed t

o L

uxo

ft)

Volume traded Luxoft S&P 500

20.4

72%

189%

26 June 2013:Announced its IPO of 4.1m shares at $17.0 per share

7 July 2014:Acquired Mecel PopulusSuite, a complete tool chain for designing, developing, and deploying user interfaces for distributed embedded systems, from Mecel AB

7 October 2014:Acquired Radius, a U.S.- based solution provider focused on the IoT industry

23 February 2016:Acquired SymtavisionGmbH, a provider of automotive software tools and consulting services

13 September 2016:Acquired Pelagicore AB, a Sweden-based provider of software platforms and services for In-Vehicle Infotainment Systems

18 February 2015:Acquired Excelian, a UK-based systems integrator and tech consulting company

18 July 2016:Acquired INSYS Group, an IT Management and Technology Consulting Firm

1 February 2017:Acquired IntroPro, an engineering consultancy

23 March 2017:Acquired derivIT, a Singapore-based financial services-focused technology consulting provider

16 November 2017:Reported Q2 Sep 2017 results. Revenue up 16.1% y-o-yAdj. EPS up 3.2% y-o-y

28 September 2017:Acquired Unafortis, Swiss-based wealth management consultancy


46

21%

20%

19%

16%

13%

11%Media & Ent.

Travel

Financial Serv.

Tech & Telecom

Professional Serv.

Others

81%

10%9%North

America

Latam and

Others

Europe




Peterson, Jason CFO



Global provider of software product engineering, technology consulting and digital expertise

Investors

▪ Globant is an Argentina based company, providing IT services with strong focus on digital technologies. Itsofferings include:

− Consumer Experience: API management, e-commerce solutions, omni-channel experiences

− Gaming: Graphics engineering, game engineering, gaming experience, digital platform services

− Big Data: Scalable platforms and data integration, data architecture, visualization, data science

− Quality Engineering: Testing centre, test automation, mobile testing, load & performance testing

− Enterprise Consumerization: Talent management, cloud development, enterprise operations

− UX Design: Service design, user experience design, industrial design and visual design

− Mobile: Native development, product development, enterprise mobility

− Cloud Ops: Services around cloud operations and enabling DevOps culture

− Wearables and Internet of Things: Wearable application usability and interface design etc.

− Continuous Evolution: IT service management, software evolution, software archaeology

− Digital Content: Content management systems, e-learning solutions, digital marketing services

− Cognitive Computing: Rules engine, machine learning, and artificial intelligence based services



Board & Management


Rev by Geography

Headquarters LuxembourgFounded 2003Number of Employees 6,223Reporting Currency USDRevenue $323m (FY 16)EBITDA $61m (FY 16)Market Cap $1.7bn (08/01/2018)

Clients

CAGR 25%

Rev by Industry

Capital Research & Management Company 8.6%Morgan Stanley Investment Management 8.3%


Riverbridge Partners 4.6%

Waddell & Reed Investment Management 4.6%

Wellington Management Group 3.9%

$323m(FY16)

$323m(FY16)


Migoya, Martín Chairman & CEO

Nocetti, Néstor Co- Founder & EVP

Scannapieco, Alejandro CFO

Englebienne, Guibert CTO

Kanefsck, Natalia CAO

46Sources: Capital IQ, Company website, One Source, Avendus Research

$0.2bn$0.3bn

$0.3bn$0.4bn

$0.5bn

14.4% 12.3%18.9% 16.0% 17.0%

Dec-14 Dec-15 Dec-16 Dec-17E Dec-18E

Revenue EBITDA margin, %


https://clipartfest.com/categories/view/ba3ff857f99db0c41596f60c1675bea9423ff63d/clipart-disney-logo.html

47Sources: Capital IQ as of 08 January 2018, Company website, One Source, Avendus Research 47

The Company has constantly beaten the benchmark index with c.314% return since trading inception

--

3

6

9

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20

25

30

35

40

45

50

Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18

Vo

lum

e in m

illion

s

Shar

e P

rice

in $

(re

bas

ed t

o G

lob

ant)

Volume traded Globant S&P 500

11.3

39%

314%

18 July 2014:Announced its IPO of 5.85m shares at $10.0 per share

27 March 2015:Announced a secondary offering of 3.5m shares at $18.5 per share

14 May 2015:Acquired Clarice Technologies, an outsourced software development company

9 July 2015:Announced a secondary offering of 3.5m shares at $28.3 per share

24 May 2016:Acquired WAE, a service design company

14 November 2016:Acquired Seattle-based L4, a digital services company

1 March 2017:Acquired Ratio, a digital services company

1 June 2017:Acquired PointSource, another digital services company

16 November2017:Reports Q3 Sep 2017 resultsRevenue up 33.2% y-o-yAdj. EPS up 13.3% y-o-y


49The deals / figures mentioned above are across all Avendus Group Entities globally

49

Number of deals

Sell side / PE Buy side

CY 14 23 1

CY 15 25 2

CY 16 22 1

YTD CY17 20 1

AvendusFact Sheet

M&A Transactionswith deal value of

USD6.4Bn since 2007 including ~60 cross border transactions

Structured Credit Transactionswith deal value of

USD680 Mn since 2007

Employees Globally One of the largest

investment banking teams in India

Private Equity Transactionswith deal value of USD 4.5 Bn

since 2007

Consistently ranked among top Investment Banks in India

by deal count

Global Presencewith offices in 6 cities, 3 countries

Registered with FINRA in US & Financial Conduct Authority (FCA) in UK

USD1.4Bn

USD150Mn

30

100 119

200+

Assets under management in our Wealth Management business, 300+ families

Assets under management through our Technology and Public Funds

STRONG TRACK RECORD OF CLOSING M&A AND PE SYNDICATION DEALS WINNER OF SEVERAL AWARDS AND RECOGNITION

Investment Bank Of The Year

Private Equity- 2015

Asia’s 150 Most Promising Brands– 2014

Investment Banker Of The Year – 2009

Avendus KKR Strategic Relation – Long term partners to provide one stop shop for financial advisory services to entrepreneurs


5050

LIFE SCIENCES / HEALTHCARE

Generic Pharma, Contract Research & Manufacturing, Clinical Research (CRO), API &

Formulations, Agri-Inputs & Indian care providers

Acquired majority stake

Undisclosed

Advisor to: Devidayal

March 2011

Private Equity

Undisclosed

Advisor to: Devidayal

September 2015

ENTERPRISE TECHNOLOGY AND SERVICES

Technology, IT enabled Services, Business Process Outsourcing (BPO), Knowledge Process Outsourcing

(KPO), Analytics

Undisclosed

Advisor to: eInfochips

Jan-18

Has acquired

CONSUMER, FIG & BUSINESS SERVICES

Manufacturing & Services companies in Food & Beverages, Retail, Media, Business Services,

Education, Logistics & Financial Services

$140 Mn

Adviser to: TCNS

August 2016

Private Equity

$100 Mn

Advisor to: Ujjivan

March 2015

Private Equity

$60 Mn

Advisor to: Utkarsh

October 2016

Private Equity

INDUSTRIALS

Manufacturing & Services companies across Automotive, Heavy machinery, ancillary equipment,

Capital Goods, Transportation, Renewables & Process Industries

Has acquired

Undisclosed

Advisor to: Borosil

January 2016

Has Acquired

Undisclosed

Advisor to: Filtra

January 2016

Has acquired

Undisclosed

Advisor to: Borosil

July 2016

INFRASTRUCTURE

Power, Roads & Construction, Ports, Renewable Energy, Mining, Real Estate, Leisure & Commercial

Private Equity

$150 Mn

Advisor to: Diligent

May 2011

$25 Mn

Advisor to: Pristine

January 2015

Private Equity Private Equity

Undisclosed

Advisor to: Diligent

April 2013

DIGITAL MEDIA & TECHNOLOGY

Software & Hardware Technology platforms, Internet, Digital Media, Communication Tech,

Mobile Apps & Value added Services (VAS)

UndisclosedAdvisor to: TechProcess

February 2017

Has Acquired Private Equity

$50 MnAdvisor to: BYJU

September 2016

Undisclosed

Advisor to: Lohika

August 2016

Has acquired Private Equity

$56 MnAdvisor to: M&M

March 2017

Private Equity

$43 Mn

Advisor to: Paras

July 2017

Undisclosed

Advisor to: Laserline

July 2017

Has acquired


511) Since Jan 2008 by number of deals

51

» Have advised on ~100 transactions in the Enterprise Technology and Services space

» Global team of 20 professionals based out of US, Europe and Asia

» Strong track record of running successful global sale processes

• Lutech – One Equity Partners (’17), Mastek – TAISTech (‘16), Altran – Lohika (‘16), E2Open –

Orchestro (‘16), Infogain – Bluestar Infotech (‘16), Everstone / Solmark – Servion (’14),

Symphony Teleca – Aditi (‘14), Moody’s – Amba (’13), Webhelp – HEROtsc (’13), EXL – OPI

(‘11)

» Have advised on some of the largest M&A transactions in the global Enterprise Technology and Services

space in the last few years

• CVC – SPI Global, Mphasis - Digital Risk, Serco - Intelenet, iGate - Patni, Mahindra - Satyam

» Deep domain expertise enables us to provide theme based advisory by identifying future trends

• Up-to-date view on the strategic thinking of key players in the space, given a rich and extensive

relationship network in the sector

• Thought leadership in the Enterprise Technology and Services industry

Deal Segmentation1

Strong Sell / Buy-Side Experience1

77%

23%

M&A PE Syndication

65%

35%

Sellside Buyside

Avendus IT-BPO Employee Geography Split

24%

24%53%

US Europe India

Avendus Publications

Cloud ServicesOutsourced Product Development

UI/UX & Digital Transformation

Global Analytics Industry

Healthcare Technology Services


5252(1) Geography as seller – acquirer; (C) Indicates Avendus’ client; The above deals are a representative list of deals

(2) Pending closure

Avendus has advised on 60+ M&A and buy-out transactions since 2006 in the enterprise technology and services space

» Executed deal sizes ranging between $25 Mn – $1.2 Bn

Month Seller Acquirer Geography1

Jan-18(2) eInfochips C Arrow Electronics India – US

Dec-17 VisionaryRCM C Carlyle India – India

Aug-17 Tech Vulcan Synapse C India – US

Jul-17 Lutech / LaserLineC One Equity Partners Italy – US

Dec 16 TAISTech C Mastek US – India

Aug 16 Lohika C Altran US – France

Jun 16 Orchestro C E2open US – US

Oct 15 BlueStar IT business C Infogain India – US

Aug 15 CrossView C PFSweb US – US

Apr 15 CLX Europe eClerx C Italy – India

Jan 15 Sofgen C Tech Mahindra Switzerland – India

Jan 15 Rangsons Electronics Cyient C India – India

Dec 14 3i Infotech (W Europe) C Objectway SpA UK – Italy

Dec 14 Zeon Solutions C Perficient US – US

Dec 14 Aditi C Symphony Teleca India – US

Dec 14 Servion C Everstone, Solmark India – Singapore

Sep 14 Apex Analytix C Carousel Capital US – US

Aug 14 Professional Access C Zensar Technologies US – India

May 14 I-Cubed KPIT C US – India

Dec 13 Amba Research C Moody’s Corporation India – US

May 13 Learn2Perform KPIT C US – India

Month Seller Acquirer Geography1

Feb 13 HEROtsc C Webhelp UK – France

Feb 13 SPi Global CVC C Philippines-UK/HK

Dec 12 Digital Risk MphasiS C US – India

Jul 12 Vertex's Public Sector Serco C UK – UK

May 12 Agilyst eClerx C US – India

May 12 Promax Wipro C Australia – India

Nov 11 Laserwords SPi Global C India – Philippines

Jul 11 Nagarro C Allgeier Holding AG US – Germany

Jul 11 Intelenet Serco C India – UK

May 11 OPI C EXL US – US

May 11 SYSTIME C KPIT US – India

Jan 11 Patni C iGate India – US

Jan 11 WCI Consulting Take Solutions C UK – India

Aug 10 Venture Infotek C Atos Origin India – France

Feb 10 SMS C Genpact US – US

Nov 09 Sparta consulting C KPIT US – India

Apr 09 Satyam C Tech Mahindra India – India

Dec 08 Infovision C Serco India – UK

Nov 08 CMS C Blackstone India – US

Mar 08 STG C Mastek US – India

Dec 07 Datalinx C Aricent US – US


5353

» Satyam – Tech Mahindra: Successfully positioned & soldSatyam as a scaled up, offshore Technology asset despite thelack of credible financial info & turmoil at the company

» Atos Origin – Venture Infotek: Ran a competitive process,reaching out to over 30 companies globally and receivingoffers from 6 parties. Maintained competitive pressure till theend to maximize shareholder value

Avendus’ Experience In Positioning Assets & Running Complex Processes

Avendus’ Experience In Bringing Out -of-the-Box Investor Ideas To The Table

» eInfochips – Arrow: Sold an Indian engineering solutionscompany to an American electronics distribution and valueadded services player

» Lifetree – Tecnomen: Sold an Indian telecom solutionscompany to a Finnish strategic buyer

» Nagarro – Allgeier: Identified that European players with lack ofoffshore capabilities will be the most likely buyers

» InfoVision – Serco: Identified Serco, without any India presenceat that time as a likely buyer for InfoVision the 3rd largest Indiadomestic focused BPO at the time

Month Assets Global Bidders Investor

Jan-18 1 eInfochips 1 US, 2 fund Arrow Electronics

Dec-17 VisionaryRCM 1 fund Carlyle

Jul-17 Lutech 1 Europe, 2 funds One Equity Partners

Dec-16 TAISTech 3 US, 1 India Mastek

Aug-16 Lohika 2 Europe, 1 US, 1 India, 2 PE Altran

Jun-16 Orchestro 3 US, 2 PE E2open

Oct-15 BlueStar Infotech 1 US, 1 Europe Infogain

Aug-15 CrossView 2 US PFSweb

Jan-15 SOFGEN 1 Europe, 2 Asia Tech Mahindra

Jan-15 Zeon Solutions 2 US, 1 Asia, 1 fund Perficient

Dec-14 Servion 2 US, 1 Australia, 1 Asia, 2 PE Everstone/Solmark

Apr-14 Aditi 1 US, 3 Asia Symphony Teleca

Dec-13 Amba Research 2 US, 3 Asia Moody’s Corp.

Jun-13 Fractal Analytics 4 US, 1 Canada, 6 Asia TA Associates

Feb-13 HEROtsc 1 US, 4 Europe Webhelp

May-11 OPI Global 1 US, 3 Asia ExlService

Jan-11 Patni Computers 3 Asian, 5 funds iGate

Aug-10 Venture Infotek 2 Europe, 2 US, 2 Asia Atos Origin

Feb-10 SMS 1 US, 3 Asia Genpact

May-09 Lifetree 1 Europe TECNOMEN

Apr-09 Satyam 2 Asian, 1 fund Tech Mahindra

Dec-08 Infovision 1 Europe, 2 Asia Serco

Mar-08 STG 2 US, 1 Asia Mastek

Sep-07 Datalinx 2 US, 1 Asia Aricent

Sep-07 SCICOM 1 US, 2 Asia SAIC

Sep-07 Metamor 1 US, 1 Europe, 3 Asia Ciber

Mar-07 Focus Informatics 2 US, 1 Europe, 1 Asia Nuance

» We have a history of running very competitive mandates with more than three non binding offers in most transactions

» Our typical closing rates for transactions is in the 60% range

(1) Pending closure Private & Confidential

5454

• DOMAIN EXPERTISE & KNOWLEDGE LED ADVISORY SERVICES

• Domain Expertise & Thought Leadership:

» Deep insights into strategic priorities of Enterprise Technology and Services majors in India, US and Europe through board level relationships

» Strong understanding of deal drivers through extensive coverage of global and domestic companies

• Strong Research Based Sector Knowledge:

» Dedicated India, US & Europe geographic research teams covering the Enterprise Technology and Services sector comprehensively

» Continuous engagement with IT consortiums such as NASSCOM provides an extra edge in accurately predicting the sector trends

• Our Research Reports Have Actively Promoted Transactions In The Areas Covered:

Has acquired

$91 Mn

Advisor to: OPIMay 2011

Has acquired

$40 Mn

Advisor to: InfoVision

December 2008

Has acquired

Undisclosed

Advisor to: Vertex

September 2010

Has acquired

$36 Mn

May 2012Advisor to: Wipro

Private Equity

$25 Mn

Advisor to: Fractal

June 2013


http://www.serco.com/

http://www.infovisiongroup.com/

http://www.wipro.com/index.aspx

http://avendus.com/Upload/TransactionFiles/DealRelease/Avendus_Deal_Release_Tega_TAAssociates_May_11.pdf

5555

» Avendus Enterprise Technology and Services practice comprises of 20+ professionals based out of USA, Europe & India, with advisor based out of Japan

EXECUTIVE MANAGEMENT

GAURAV DEEPAK, CO-FOUNDER AND MANAGINGDIRECTOR

» Heads Investment Banking and oversees the Real Estate, Consumer & Industrial practice and Europe operations

» 18+ years of experience in Investment banking, Equity Capital Markets & Private Placements

» Worked with ICICI prior to founding Avendus

» B.Tech. from IIT, Kanpur and PGDM from IIM, Calcutta

KAUSHAL AGGARWAL, CO-FOUNDER AND MANAGING DIRECTOR

» Heads Institutional Equities and oversees the IT, ECM, Structured Finance and US operations

» 18+ years of experience in Investment banking & Equity Capital Markets

» Worked with Kotak Mahindra and CEA prior to founding Avendus

» B.Tech. from IIT, Delhi and PGDM from IIM, Bangalore

ABHINAV GOEL, Director

» Has worked with the Enterprise Technology and Services group atAvendus for 8+ years

» B.Tech. from IIT Kanpur and PGDM from IIM Lucknow

GLOBAL INTEGRATED IT / BPO TEAM

PUNEET SHIVAM, ED & HEAD – US & CO-HEAD – BPO

» 18+ years of experience in financial services & consulting

» Was Board Member and Head of Management Consulting at Inductis, aboutique management consulting firm, prior to joining Avendus

» B.Tech and M.E.M from IIT, Kanpur and PGDM from IIM, Ahmedabad

SHOBHIT JAIN, VP

» 12+ years of experience in investment banking of which 5+ yearsexperience in technology and media industry

» Worked at Kotak Investment Bank prior to joining Avendus

» Qualified Chartered Accountant

JEROME GLYNN SMITH, VP

» 8+ years of investment banking experience

» Previously worked with Deloitte Corporate Finance and J.P. MorganInvestment Banking

» M.B.A. from ESCP-EAP, European School of Management & PGPM fromIndian Institute of Management, Lucknow

SENIOR ADVISOR

EISUKE SAKAKIBARA, MEMBER ADVISORY COUNCIL

» Served as Japan’s Vice Minister of Finance and International Affairs

» Held multiple positions with the Govt. of Japan

» Key advisor to the Democratic Party of Japan

US

Ind

iaU

SE

uro

pe

AMIT SINGH, ED & HEAD- TECHNOLOGY & CO-HEAD – BPO

» 18+ years of experience in investment banking & technology industry

» Worked with Cambridge Technology Partners and PwC prior to joiningAvendus

» B.E. from BITS (Pilani) and PGDM from XIM, Bhubaneswar

Ind

ia

DEEPAK BHANDARI, HEAD OF EUROPE

» 20+ years of experience between UK and India

» Previously worked as the head of TMT coverage for Barclays InvestmentBanking (India) and as a Generalist at UBS (London)

» Qualified Chartered Accountant & MBA from London Business School

Eu

rop

e


56

December 2016

Undisclosed

Advisor to TAISTech

acquired acquired

July 2016

Undisclosed

Advisor to Lohika

acquired

July 2016

Undisclosed

Advisor to Orchestro

invested in

June 2016

$32m

Advisor to Lendingkart

acquired

December 2016

$35m

Advisor to Amagi

acquired

January 2016

$28m

Advisor to BSIL

April 2015

$25m

Advisor to eClerx

acquired

acquired

January 2015

Undisclosed

Advisor to Sofgen

(W.-Eur.)

acquired

December 2014

Undisclosed

Advisor to 3i Infotech

acquired

December 2014

Undisclosed

Advisor to Zeon

acquired

August 2014

Undisclosed

Advisor to PA

invested in

June 2013

Undisclosed

Advisor to Fractal

acquired

February 2013

$110m

Advisor to HeroTSC

acquired

February 2013

Undisclosed

Advisor to CVC

Advisor to Crossview

acquired

August 2015

$38m

Advisor to TechProcess

acquired

January 2017

Undisclosed

acquired

April 2017

Undisclosed

Advisor to SVG Advisor to TechProcess

Advisor to CrossView

acquired

July 2017

Undisclosed

Advisor to Laserline

acquired

August 2017

Undisclosed

Advisor to Synapse

acquired

Dec 2017

Undisclosed

Advisor to VRCM

acquired

Jan 2018

Undisclosed

Advisor to eInfochips


http://avendus.com/Upload/TransactionFiles/DealRelease/Avendus_Deal_Release_Tega_TAAssociates_May_11.pdf

57

Avendus Capital Private Limited : CIN : U99999MH1999PTC123358 | SEBI Registration no. : Merchant Banking - INM000011021 | Avendus Wealth Management Private Limited : CIN :U67120MH2008PTC179931 | SEBI Registration no.: PMS - INP000003625 | SEC - USA : CRD No. 156771 | Avendus Capital, Inc: FINRA-USA: CRD No. – 150160 | Avendus Capital(UK) Private Limited:Authorised and regulated by the Financial Conduct Authority (493919) | Avezo Advisors Pvt. Ltd.: CIN: U74120MH2014PTC255373 | SEBI Registration No. Portfolio Manager - INP000004607 |Manager to SEBI registered Category - I Alternative Investment Fund - Zodius Technology Fund - IN/AIF1/14-15/0126 | Manager to SEBI registered Category III Alternative Investment Fund-Avendus India Opportunities Fund III - IN/AIF3/12-13/0033

Regus Business Centre, PS Arcadia, Office No 927, 9th Floor, Unit No.C, 4A, CamacStreet, Kolkata – 700 016

Avendus Capital (U.K.), Private Limited33, St James's Square, London SW1Y 4JS

Avendus Capital Inc., 499 Park Avenue, 12th Floor, New York, NY 10022

IL&FS Financial Centre, C & D Quadrant - 6th Floor Bandra-Kurla Complex, Bandra (East), Mumbai -400 051

901-B, Time Tower, M.G.Road,Gurgaon, Haryana – 122002

The Millennia Tower, A -10th Floor, No 1 & 2, Murphy Road, Ulsoor Bangalore - 560 008


58

This document is being furnished to you by Avendus Capital Private Limited for itself and its affiliates strictly on a confidential basis. The document is for informational purposesonly and should not be regarded as an offer to sell, or offer for subscription, or as a solicitation of an offer to buy the securities or other investments mentioned in it. Thisinformation profile has been provided to its recipient upon the express understanding that the information contained herein, or made available in connection with any furtherinvestigation, is strictly confidential and is intended for the exclusive use of its recipient. It shall not be photocopied, reproduced and/or distributed to others at any time withoutprior written consent.

This document is neither a prospectus nor an invitation to subscribe to securities or other investments. Nothing in this document is intended to constitute legal, tax, securities orinvestment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. The information herein is subject to change withoutnotice. Avendus Capital Private Limited does not represent that any information, including any third party information, is accurate or complete and it should not be relied uponwithout proper investigation on the part of the investor/s.

Neither Avendus Capital Private Limited nor its affiliates nor any of its officers or employees accept any liability whatsoever for any direct or consequential loss arising from any useof this publication or its contents. The recipient of the material should rely on their own investigations and take their own professional advice. While we endeavor to update on areasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so.

Investments in securities/equity related instruments are subject to market risk. These risks could be security specific or market specific and arising from company, industry,political, economic (both domestic and global), etc, factors. Investor/s should carefully read all disclosure documents before investing and shall not make Avendus Capital PrivateLimited and/or its associates/employees liable for any risks/losses pertaining to any product/scheme offered by them from time to time.

Past performance does not indicate the future performance of any current or future fund or strategies advised or managed by Avendus Capital Private Limited or its affiliates.

Distribution of this document in some jurisdictions may be restricted or prohibited by law and regulation, and accordingly recipients of this document represent that they are ableto receive it without contravention of any unfulfilled registration requirements or any other legal or regulatory restrictions. Recipients of this document in such jurisdiction shouldfully inform themselves about and observe all applicable legal or regulatory requirements and Avendus Capital Private Limited and its affiliates, directors, shareholders, managers,officers, employees, agents and advisors, do not accept any liability to any person in relation thereto.

For the purposes of distribution within the United Kingdom, this communication is exempt from the financial promotion restriction in Section 21 of the Financial Services andMarkets Act, 2000 relating to the communication of an invitation or inducement to engage in investment activity on the grounds that it is made to those persons falling within thefollowing Articles of the Financial Services and Markets Act 2000 (Financial Promotion)Order 2005, as amended: Article 19 (Investment Professionals) and Article 49 (High NetWorth Companies). Any investment to which this communication relates is only available to investment professionals and high net worth companies.If you have received this document and you are not the person for whom it is intended, you should not rely on this communication or act on it.


Industry overview · Market 2021 US$ 302 billion CAGR : 12.9% CAGR : 2.8% CAGR : 1.3% Source:...

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Transcript of Industry overview · Market 2021 US$ 302 billion CAGR : 12.9% CAGR : 2.8% CAGR : 1.3% Source:...