IT Security Sector - William Blair/media/... · The heightened focus on IT security has enabled...

Q4 2013 UpdateJanuary 2014

IT Security SectorOverview of Market Activity in the IT Security Sector

William Blair’s investment banking group combines signi icant transaction experience, rich industry knowledge, and deep relationships to deliver successful advisory and inancing solutions to our global base of corporate clients. We serve both publicly traded

and privately held companies, executing mergers and acquisitions, growth inancing, special situations and restructuring, and general advisory projects. This comprehensive suite of services allows us to be a long-term partner to our clients as they grow and evolve. In 2012, the investment banking group completed 76 merger-and-acquisition transactions worth more than $13.8 billion in value, involving parties in 21 countries and ive continents, and was an underwriter on over 20% of all U.S. initial public offerings.

About William Blair Investment Banking

IT Security Sector_Updated.indd 1-2IT Security Sector_Updated.indd 1-2 1/16/2014 11:36:39 AM1/16/2014 11:36:39 AM

William Blair & Company

IT Security Sector – Q4 2013 Update IT Security – Market Update 1

IT Security – Market Update

The year 2013 was an extremely active one within the IT security market. The threat landscape continues

to intensify and is increasingly visible to the general public and businesses alike with events such as the recent

data breaches at Target and Neiman Marcus and the continuing Edward Snowden scandal. An effective IT security

strategy has become critical for businesses to prevent data leakage, protect intellectual property, and maintain

consumer privacy. The heightened focus on IT security has enabled vendors to experience awareness, adoption,

and growth at unprecedented levels. Valuations have followed in stride, clearly displayed by the exceptional

public market performance of “best-of-breed” vendors during 2013. Mergers and acquisitions continued to be a

priority during the past year for strategic acquirers and financial investors alike in an attempt to drive revenue

growth and maintain or grow market positions.

The public markets experienced one of the best years in recent memory with the S&P 500 yielding gains

of more than 40%. Several IT security vendors participated in this success; FireEye, Gigamon, and Barracuda

Networks all made successful public market debuts during the year. A number of IT security vendors from the IPO

class of 2012 also experienced exceptional stock price performance during the year; Proofpoint, Splunk, Infoblox,

and Qualys all experienced gains of more than 90%. From a new issuance perspective, Barracuda Networks was

the highlight of the fourth quarter, making its debut the same week as the highly anticipated Twitter IPO.

Barracuda’s cloud-connected approach to security and storage solutions resonated with investors. In addition, the

company’s success in the midmarket highlights the pervasiveness of IT security challenges in business today.

Barracuda’s stock price rallied to close the year up 120% from its $18 IPO price.

The fourth quarter was also marked by continued M&A activity in the sector. The highlight of the quarter

was FireEye’s encore to its highly successful IPO with its acquisition of security forensics specialist Mandiant.

FireEye’s stock price continued its climb after the announcement as investors viewed this acquisition as positive

for the emerging company. Next-generation firewall provider Palo Alto Networks followed suit with its first

inorganic growth initiative to date, acquiring stealth-mode start-up Morta Security. We believe these two

acquisitions, in addition to recent M&A activity seen by other high-growth vendors such as Solarwinds and

Splunk, suggests the next generation of consolidators are starting to emerge. Another notable acquisition during

the fourth quarter included Akamai’s acquisition of distributed denial of service (DDoS) vendor Prolexic

Technologies.

Capping off an already active 2013, several notable minority capital raises occurred during the fourth

quarter within the IT security sector. Mobile security vendor Mocana raised $15 million led by GE Ventures, with

existing investors Shasta Ventures, Southern Cross Venture Partners, Symantec, and Trident Capital also

participating. In addition, server monitoring and auditing vendor ObserveIT raised $20 million led by Bain Capital

Ventures, expanding Bain’s already substantial security portfolio.

The past year showed that IT security continues to be a high-growth sector and one that is undergoing

significant disruption as “best-of-breed” threat detection and response techniques continue to evolve. William

Blair continues to have a good pulse on the market, and we anticipate that market momentum will continue

driving sustained revenue growth for the sector and stable valuations at attractive levels throughout 2014.

Source: Capital IQ as of January 16, 2014.


IT Security Sector – Q4 2013 Update 2 William Blair IT Security Team Contact Information

William Blair IT Security Team Contact Information

Dan Daul, managing director and co-head of IT security, joined the corporate finance department of William Blair in 2005. While at William Blair and in his prior position at Robert W. Baird & Company, Dan focused on the investment banking needs of IT security, financial technology, and transaction-processing companies. Dan has been involved in more than 60 financing and M&A transactions aggregating more than $5.0 billion in transaction value. Dan graduated from the University of Wisconsin with a B.S. degree and received his M.B.A. from the Kellogg School of Management at Northwestern University.

[email protected]

+1 312 364 8457

Scott Stevens, managing director and co-head of IT security, joined the corporate finance department of William Blair in 2007. Before joining the firm, Scott spent 11 years in several roles with EMC Corporation, including mergers and acquisitions, venture investments, office of the CTO, sales and marketing, and technology alliances. He has a broad background in infrastructure software, systems, and services. Scott graduated from Illinois Wesleyan and received his M.B.A. from the Kellogg School of Management at Northwestern University.

[email protected]

+1 312 364 8337

Drew Thomas, vice president in the technology group, joined the corporate finance department of William Blair in 2010. Before joining the firm, Drew worked in corporate strategy for Cerner Corporation, a healthcare information technology (HIT) company. In addition, Drew was an associate with Stone Arch Capital, a middle-market private-equity firm, where Drew specialized in deal evaluation and execution. Before Stone Arch Capital, Drew was an analyst in the corporate finance department of RBC Capital Markets, focusing on technology M&A. Drew holds an M.B.A. from Harvard Business School and a B.B.A. in finance and economics from the University of Iowa, Tippie College of Business. Drew is a CFA Charterholder.

[email protected]

+1 312 364 8633

mailto:[email protected]

mailto:[email protected]


IT Security Sector – Q4 2013 Update Spotlight – Selected William Blair Transactions 3

Spotlight – Selected William Blair Transactions

We have represented several industry leaders in the broader IT security market

William Blair acted as an underwriter in the initial public offering

Barracuda designs and delivers powerful yet easy-to-use security and storage solutions

The company’s cloud-connected physical and virtual appliances, as well as cloud-only solutions, help its customers address security threats, improve network performance, and protect and store their data

William Blair acted as an underwriter in the follow-on offering

Gigamon has developed an innovative solution that delivers pervasive and dynamic intelligent visibility of traffic across networks. The company’s solution, which Gigamon refers to as its Traffic Visibility Fabric, consists of distributed network appliances that enable an advanced level of visibility, modification and control of network traffic

October 2013 follow-on offering priced at a 6.7% premium to the filed price of $36.08

William Blair represented FishNet Security in connection with its majority sale to Investcorp

FishNet is the largest independent, full-service information technology security solutions provider in the world

Investcorp is partnering with existing management to drive continued growth in managed services and expand geographic reach

William Blair represented DigiCert in connection with its majority investment from TA Associates

DigiCert is a premier online trust provider of enterprise security solutions with an emphasis on authentication, PKI, and high-assurance digital certificates

TA Associates is partnering with existing management to continue the company’s exceptional growth in online trust as well as to expand the company’s product portfolio with adjacent security solutions

William Blair represented ID Analytics in connection with its sale to LifeLock (NYSE: LOCK)

ID Analytics is a leading provider of identity risk and fraud management solutions

ID Analytics provides LifeLock with the opportunity to own the core intellectual property underlying many of LifeLock’s solutions

The acquisition was a key catalyst for LifeLock’s initial public offering in the fall of 2012


$85,698,000

Initial Public Offering

November 2013

$196,350,000

Follow-on Offering

October 2013

Not Disclosed

has sold a majority stake to

Investcorp

November 2012

Not Disclosed

has received a majority investment from

TA Associates

November 2012

$186,000,000

has been acquired by

LifeLock

March 2012


IT Security Sector – Q4 2013 Update 4 William Blair Industry Events

William Blair Industry Events

2014 Private Equity Conference held September 17-18, 2014, Four Seasons Hotel Chicago

17th Annual

Private Equity Conference

2013 conference highlights:

– 55 companies participated

– More than 640 institutional private-equity investors and venture capital investors attended

– Roundtable discussions focused on the following industry sectors and topics:

Technology

Financial services

Business services

Commercial services

Consumer and retail

Healthcare

Industrials

2014 Growth Stock Conference to be held June 10-12, 2014, Four Seasons Hotel Chicago

34th Annual

Growth Stock Conference

2013 conference highlights:

– 218 companies participated

– More than 905 institutional clients

– More than 4,100 one-on-one meetings arranged

2014 Technology Company Growth Conference to be held May 15, 2014, Four Seasons Hotel San Francisco

2nd Annual Technology Company Growth Conference

78 companies presented in 2013:

– Leading late-stage private technology companies

Business development / financial sponsor invitations:

– Public companies with roughly $1 billion market capitalization

– Large private companies with greater than $500 million in revenues

– Operating (or seeking acquisitions) in technology, financial technology, and/or healthcare IT


IT Security Sector – Q4 2013 Update Relevant William Blair IT Security Expertise 5

Relevant William Blair IT Security Expertise

IT Security Transactions

IT Security Research Coverage

Jonathan Ho joined William Blair in 2005 and specializes in cybersecurity and security technology. Jonathan received his B.S. degree from the University of Maryland and his M.S. degree from Johns Hopkins. In addition, he received his M.B.A. from the University of Chicago.

(1) Indicates covered until acquired. (2) Covered by Bhavan Suri. (3) Covered by Jason Ader.

$85,698,000

Initial Public Offering

November 2013

$196,350,000

Follow-on Offering

October 2013

Not Disclosed

has sold a majority stake to

Investcorp

November 2012

Not Disclosed

has received a majority investment from

TA Associates

November 2012

$186,000,000


LifeLock

March 2012

$120,500,000


Spectrum Equity Investors

December 2010

$150,000,000


American Express

November 2010

$64,300,000


Equifax

October 2010

ENABLING TRUSTED ACCESS

SYSTEMS(1)

(1)(1)

(1) (2)

(3)


IT Security Sector – Q4 2013 Update 6 Update on IT Security Landscape and Market Valuations

Update on IT Security Landscape and Market Valuations

High-Growth IT Security

Median Market Valuations

EV / Revenue

LTM: 8.78x

2014E: 6.64x

Company Market Cap ($M)

LTM Price Performance

EV / 2014E Revenue

EV / 2014E EBITDA

LTM Revenue Growth

FireEye(1)(2) $8,577.2 255.0% 20.35x NMF 110.4%

Splunk $8,520.5 149.9% 20.62x NMF 51.4%

Palo Alto Networks $4,615.5 16.3% 6.53x 49.6x 54.4%

Fortinet $3,517.7 8.0% 4.38x 19.8x 17.0%

Infoblox $2,042.6 100.5% 6.00x 35.1x 33.3%

Barracuda Networks(1)(3) $1,877.9 105.1% 6.75x 52.7x 17.1%

Imperva $1,414.2 66.7% 7.59x NMF 32.5%

Proofpoint $1,351.5 188.9% 7.76x NMF 25.3%

Gigamon(1) $944.4 59.9% 4.65x 31.6x 49.9%

Qualys $931.1 94.5% 6.49x 36.4x 18.5%

(1) LTM price performance shows performance since IPO pricing. (2) LTM revenue growth as of September 30, 2013; excludes the effect of the Mandiant acquisition. (3) LTM revenue growth based on FYE Feb-13E growth due to limited public information.

Traditional IT Security

Median Market Valuations

EV / Revenue

LTM: 2.39x

2014E: 2.43x

EV / EBITDA

LTM: 10.8x

2014E: 8.9x

Company Market Cap ($M)

LTM Price Performance

EV / 2014E Revenue

EV / 2014E EBITDA

LTM Revenue Growth

Symantec $16,071.4 11.5% 2.13x 6.5x 1.8%

Check Point Software $12,762.4 32.1% 7.81x 13.2x 3.4%

Trend Micro $4,322.9 16.3% 2.89x 8.9x (11.6%)

AVG Technologies $915.2 8.5% 2.28x 6.8x 19.5%

Guidance Software $301.1 (16.1%) 2.43x 32.5x (3.5%)

Zix $296.5 52.2% 4.93x 15.3x 14.4%

VASCO Data Security $293.1 (4.1%) 1.25x 7.9x (8.0%)



IT Security Sector – Q4 2013 Update IT Security Sector Market Analysis 7

IT Security Sector Market Analysis

Public Comparable Analysis

High-Growth IT Security

($ in millions, except per share data)

Company Stock Price 1/16/14

Change Since 52 WK High

LTM Revenue(1)

Market Value

Enterprise Value

Enterprise Value/Revenue Enterprise Value/EBITDA Price/Earnings Ratio LTM Revenue Growth(1) LTM(1) 2014E 2015E LTM(1) 2014E 2015E LTM(1) 2014E 2015E

FireEye(3) $70.99 (0.8%) $226.0 $8,577.2 $8,269.5 36.60x 20.35x 14.86x NMF NMF NMF NMF NMF NMF 110.4%

Splunk(2) $79.43 (2.0%) $267.9 $8,520.5 $8,168.6 30.49x 20.62x 15.50x NMF NMF NMF NMF NMF NMF 51.4%

Palo Alto Networks(2) $63.67 (1.0%) $438.4 $4,615.5 $4,178.8 9.53x 6.53x 5.05x NMF 49.6x 25.5x NMF NMF NMF 54.4%

Fortinet $21.52 (15.1%) $589.1 $3,517.7 $3,004.6 5.10x 4.38x 3.89x 31.1x 19.8x 17.5x NMF 55.1x 44.8x 17.0%

Infoblox(2) $38.56 (21.3%) $239.1 $2,042.6 $1,813.4 7.59x 6.00x 4.90x NMF 35.1x 22.2x NMF NA NMF 33.3%

Barracuda Networks(4) $36.92 (10.6%) $225.9 $1,877.9 $1,761.3 7.80x 6.75x 5.83x NMF 52.7x NMF NMF NMF NMF 17.1%

Imperva $56.65 (1.6%) $126.8 $1,414.2 $1,305.5 10.29x 7.59x 6.39x NMF NMF NMF NMF NMF NMF 32.5%

Proofpoint $37.64 (2.1%) $125.7 $1,351.5 $1,282.7 10.20x 7.76x 6.30x NMF NMF NMF NMF NMF NMF 25.3%

Gigamon $30.38 (27.3%) $129.1 $944.4 $839.0 6.50x 4.65x 3.66x NMF 31.6x 20.5x NMF NMF NMF 49.9%

Qualys $28.87 (2.5%) $103.6 $931.1 $831.3 8.03x 6.49x 5.47x NMF 36.4x 26.8x NMF NMF NMF 18.5%

Mean $46.46 (8.4%) $247.2 $3,379.3 $3,145.5 13.21x 9.11x 7.19x 31.1x 37.5x 22.5x NA 55.1x 44.8x 41.0%

Median $38.10 (2.3%) $225.9 $1,960.2 $1,787.4 8.78x 6.64x 5.65x 31.1x 35.8x 22.2x NA 55.1x 44.8x 32.9%

Traditional IT Security

($ in millions, except per share data)

Company Stock Price 1/16/14

Change Since 52 WK High

LTM Revenue(1)

Market Value

Enterprise Value

Enterprise Value/Revenue Enterprise Value/EBITDA Price/Earnings Ratio LTM Revenue Growth(1) LTM(1) 2014E 2015E LTM(1) 2014E 2015E LTM(1) 2014E 2015E

Symantec $23.09 (14.8%) $6,885.0 $16,071.4 $14,333.4 2.08x 2.13x 2.02x 7.5x 6.5x 5.8x 20.1x 17.9x 13.0x 1.8%

Check Point Software $64.97 (0.8%) $1,375.6 $12,762.4 $11,502.0 8.36x 7.81x 7.41x 14.9x 13.2x 12.5x 20.7x 18.9x 17.6x 3.4%

Trend Micro $35.03 (12.7%) $1,061.8 $4,322.9 $3,118.1 2.94x 2.89x 2.81x 8.7x 8.9x 8.7x 25.9x 25.3x 24.3x (11.6%)

AVG Technologies $16.81 (36.7%) $400.4 $915.2 $899.4 2.25x 2.28x 2.06x 6.8x 6.8x 5.8x 16.5x 12.4x 11.4x 19.5%

Guidance Software $10.45 (20.1%) $118.8 $301.1 $284.5 2.39x 2.43x 2.25x NMF 32.5x 21.9x NMF NMF NMF (3.5%)

Zix $4.75 (5.5%) $47.5 $296.5 $263.6 5.55x 4.93x NA 25.1x 15.3x NA 31.6x 23.2x NA 14.4%

VASCO Data Security $7.58 (16.2%) $150.6 $293.1 $200.9 1.33x 1.25x NA 12.9x 7.9x NA 29.9x 20.2x NA (8.0%)

Mean $23.24 (15.3%) $1,434.3 $4,994.7 $4,371.7 3.56x 3.39x 3.31x 12.7x 13.0x 10.9x 24.1x 19.7x 16.6x 2.3%

Median $16.81 (14.8%) $400.4 $915.2 $899.4 2.39x 2.43x 2.25x 10.8x 8.9x 8.7x 23.3x 19.6x 15.3x 1.8%

Note: Financials shown on calendar year basis unless otherwise noted. (1) LTM as of September 30, 2013 or as otherwise noted. (2) LTM as of October 31, 2013. (3) LTM revenue growth as of September 30, 2013; excludes the effect of the Mandiant acquisition. Enterprise value / LTM revenue shown pro-forma for the effect of the

Mandiant acquisition. (4) LTM as of November 30, 2013. Financials shown on a fiscal year basis, February 28 FYE. LTM revenue growth based on FYE Feb-13E growth due to limited public

information. Source: Capital IQ as of January 16, 2014.


IT Security Sector – Q4 2013 Update 8 M&A Activity

M&A Activity

Select Relevant IT Security Transactions

($ in millions)

Enterprise Value/

Date Announced Acquiror Target

Enterprise Value

LTM Revenue

LTM EBITDA

1/6/14

NA NA NA

1/2/14 $1,050.0 9.50x NA

12/17/13 NA NA NA

12/9/13 $47.8 2.50x NA

12/2/13

$370.0 7.40x NA

12/2/13 $84.0 5.70x NA

11/11/13 $25.0 1.10x NA

11/7/13

NA NA NA

10/16/13 / NA NA NA

10/1/13

$310.0 14.10x NA

9/30/13

$20.0 NA NA

9/18/13

NA NA NA

9/17/13

NA NA NA

9/3/13

NA NA NA

8/20/13

$300.0 8.30x NA

8/15/13

$900.0 25.70x NA

7/23/13

$2,161.4 9.28x NMF

7/8/13

$225.0 9.00x NA

6/26/13

(Mobility Services) NA NA NA

6/25/13

NA NA NA

http://www.highcloudsecurity.com/news/highcloud-joins-forces-with-hytrust/

http://www.bip.lu/index.html

http://www.utimaco.com/











































































































IT Security Sector – Q4 2013 Update M&A Activity 9


($ in millions)

Enterprise Value/


Enterprise Value

LTM Revenue

LTM EBITDA

6/17/13

$204.6 NA NA

6/10/13

NA NA NA

6/5/13

NA NA NA

5/22/13 $225.0 18.80x NA

5/20/13

$966.2 2.69x 17.8x

3/6/13 $376.2 7.00x NMF

4/29/13

$17.4 1.05x 6.0x

4/9/13 NA NA NA

4/3/13 NA NA NA

3/11/13

$125.0 3.30x NA

1/29/13

NA NA NA

12/18/12

NA NA NA

12/16/12 (1)

$110.0 1.40x NA

12/5/12

$327.0 14.20x NA

11/30/12

NA NA NA

11/30/12

NA NA NA

11/8/12

(Government Solutions) $280.0 NA NA

11/5/12 NA NA NA

10/30/12

NA NA NA

10/17/12

$171.5 4.50x NA

10/4/12

NA NA NA


IT Security Sector – Q4 2013 Update 10 M&A Activity


($ in millions)

Enterprise Value/


Enterprise Value

LTM Revenue

LTM EBITDA

9/13/12

$85.7 7.06x NMF

9/7/12

NA NA NA

8/20/12

$90.0 4.50x NA

7/13/12 NA NA NA

6/30/12

$160.0 4.40x NA

6/25/12 $2,432.0 2.72x 13.7x

6/19/12

$82.0 NA NA

5/9/12 NA NA NA

4/16/12 NA NA NA

4/3/12

$130.0 3.50x NA

3/14/12 $186.0 NA NA

3/13/12

$1,250.0 4.81x NA

3/6/12 $120.0 1.80x NA

10/4/11 $160.0 5.30x NA

10/4/11

$575.0 8.80x NA

(1) Thoma Bravo originally announced/closed the acquisition of Crossbeam Systems on November 9, 2012; Thoma Bravo subsequently merged Crossbeam into Blue Coat Systems, a portfolio company, effective December 31, 2012.

Sources: Capital IQ, 451 Research, and Dealogic as of January 16, 2014.


IT Security Sector – Q4 2013 Update Equity Capital Markets Activity 11

Equity Capital Markets Activity

IPOs and Follow-on Offerings

($ in millions)

Pricing Date Issuer Security Sector Offering Size Ticker Symbol Exchange Deal Type

11/5/13 Barracuda Networks Security and storage $85.7 CUDA NYSE IPO

10/22/13 Gigamon Network visibility $196.4 GIMO NYSE FO

9/19/13 FireEye NG malware and APT protection $303.5 FEYE NASDAQ IPO

6/12/13 Gigamon Network visibility $128.3 GIMO NYSE IPO

10/17/12 Palo Alto Networks Next-generation firewall $302.4 PANW NYSE FO

10/4/12 Infoblox IP address management $100.0 BLOX NYSE FO

10/3/12 LifeLock Identity theft protection $141.3 LOCK NYSE IPO

9/27/12 Qualys Vulnerability scanning/SaaS $104.5 QLYS NASDAQ IPO

7/19/12 Palo Alto Networks Next-generation firewall $299.5 PANW NYSE IPO

7/19/12 Splunk Analytics/systems management $381.5 SPLK NASDAQ FO

4/19/12 Infoblox IP address management $138.0 BLOX NYSE IPO

4/19/12 Proofpoint Application security/SaaS $94.0 PFPT NASDAQ IPO

4/18/12 Splunk Analytics/systems management $263.9 SPLK NASDAQ IPO

2/1/12 AVG Technologies Endpoint protection $128.0 AVG NYSE IPO

11/8/11 Imperva Data protection $103.5 IMPV NYSE IPO

Sources: Capital IQ and Dealogic as of January 16, 2014.


IT Security Sector – Q4 2013 Update 12 Minority Equity Raises

Minority Equity Raises

Select Transactions Since January 1, 2013

($ in millions)

Date Announced Target Investors

Transaction Value Business Description

12/12/13 Mocana Trident Capital; Symantec; Shasta Ventures; Southern Cross Venture Partners; GE Ventures

$15.0 Mocana provides device management solutions and embedded security tools.

12/9/13 ObserveIT Bain Capital Ventures $20.0 ObserveIT provides solutions to identify and manage shared-account users.

11/25/13 Norse Oak Investment Partners $10.0 Norse provides Internet security intelligence solutions to e-commerce and enterprise clients.

10/16/13 CounterTack Goldman Sachs; Fairhaven Capital Partners $12.0 CounterTack provides an in-progress attack intelligence and response solution for enterprise and government organizations.

10/15/13 Druva Software Sequoia Capital India; Nexus Venture Partners; Tenaya Capital

$25.0 Druva Software provides continuous data protection, data deduplication, and disaster recovery solutions.

10/8/13 Divide Globespan Capital Partners; Comcast Ventures; QUALCOMM Ventures; Google Ventures; Harmony Partners

$12.0 Divide designs and develops enterprise mobile solutions to create a secure workspace on employee devices.

10/2/13 OneLogin Charles River Ventures; The Social+Capital Partnership

$13.0 OneLogin provides on-demand identity and access management solutions for organizations.

10/1/13 Cigital LLR Partners $50.0 Cigital operates as a software security consulting company.

10/1/13 Logentries Polaris Partners; RRE Ventures; FLOODGATE; Frontline Ventures

$10.0 Logentries develops Web-based log management services for administrators, developers, and analysts.

9/29/13 DataGuise Toba Capital $13.0 DataGuise provides data security intelligence and protection solutions for discovering, masking, analyzing risk exposure, and managing sensitive data for enterprises.

9/18/13 Illumio General Catalyst Partners; Andreessen Horowitz; Formation8 Partners

$34.0 Illumio offers cloud security Internet services.

9/13/13 Okta Greylock Partners; Sequoia Capital; Khosla Ventures; Andreessen Horowitz

$27.0 Okta provides cloud application management service.

9/9/13 CrowdStrike Accel Management; Warburg Pincus $30.0 CrowdStrike is a global provider of security technology and services focused on identifying advanced threats and targeted attacks.

9/5/13 AlienVault Kleiner, Perkins, Caufield & Byers; Trident Capital; GGV Capital; Adara Venture Partners; Top Tier Capital Partners; Correlation Ventures; Sigma West

$30.0 AlienVault develops integrated security management solutions.

8/29/13 MobileIron Foundation Capital; Institutional Venture Partners; Norwest Venture Partners; Sequoia Capital; Storm Ventures; UMC Capital; Northgate Capital Partners; SingTel Innov8

$50.0 MobileIron provides cloud-based mobile information technology solutions to organizations that are transforming their businesses through enterprise mobility globally.

8/13/13 Cyvera Battery Ventures $11.0 Cyvera develops and provides cyber defense solutions that protect organizations from targeted cyberattacks and mass attacks.


IT Security Sector – Q4 2013 Update Minority Equity Raises 13


($ in millions)



7/25/13 Prolexic Technologies

Trident Capital; Intel Capital $30.0 Prolexic Technologies provides managed distributed denial of service (DDoS) detection and protection services.

7/18/13 RiskIQ Summit Partners $10.0 RiskIQ provides a software-as-a-service product that eliminates online and mobile threats.

7/17/13 eSentire Edison Venture Fund $7.0 eSentire provides managed security solutions.

7/16/13 iSight Security The Blackstone Group NA iSight Security provides cybersecurity risk management solutions.

7/15/13 HyTrust Trident Capital; EPIC Ventures; In-Q-Tel; Granite Ventures; VMware; Cisco

$12.5 HyTrust provides virtualization security, compliance, and access control solutions.

7/8/13 Seculert Norwest Venture Partners; YL Ventures; Sequoia Capital Israel

$10.0 Seculert provides cloud-based cyber threat management services.

7/2/13 PasswordBox OMERS Ventures $6.0 PasswordBox develops an application that allows users to store, create, retrieve, and share passwords and other personal information on phones, tablets, or computers.

6/27/13 Ping Identity Draper Fisher Jurvetson; SAP Ventures; General Catalyst Partners; W Capital Partners; Appian Ventures; Avista Capital

$44.0 Ping Identity provides cloud-identity security solutions.

6/24/13 AFORE Solutions BDC Venture Capital $6.0 AFORE Solutions provides networking, virtualization, and cloud infrastructure technology solutions.

6/24/13 Vormetric JK&B Capital; Sigma Partners; Quicksilver Ventures; Split Rock Partners

$15.0 Vormetric provides enterprise encryption and key management solutions.

6/20/13 AirTight CMEA Capital; Trident Capital $10.0 AirTight Networks designs and develops wireless security and compliance solutions.

6/12/13 FireHost The Stephens Group $12.0 FireHost provides website and application-hosting solutions.

5/1/13 MetricStream Goldman Sachs NA MetricStream provides governance, risk, compliance, and management solutions.

4/29/13 Good Technology Undisclosed $50.0 Good Technology provides secure and managed enterprise mobility solutions.

4/26/13 PerspecSys Ascent Venture Partners; Intel Capital; Paladin Capital

$12.0 PerspecSys provides privacy, residency, and security solutions for sensitive data.

4/19/13 Ionic Security Kleiner, Perkins, Caufield & Byers; TechOperators

$9.2 Ionic Security developed the first unified cloud and mobility security platform for the enterprise.

3/29/13 ForgeRock Accel Management; Foundation Capital $15.2 ForgeRock develops identity-oriented middleware platform.

2/25/13 Click Security Lightspeed Venture Partners; Citi Ventures; Sequoia Capital

$17.7 Click Security provides real-time security analytics to protect networks by automating the process of finding and closing security breaches.

2/24/13 AirWatch Insight Venture Partners $200.0 AirWatch develops and offers mobile device management solutions.


IT Security Sector – Q4 2013 Update 14 Minority Equity Raises


($ in millions)



2/15/13 Aveksa Undisclosed $3.0 Aveska provides enterprise access governance automation solutions.

2/13/13 Cylance Fairhaven Capital Partners; Khosla Ventures $15.0 Cylance develops security software solutions for critical infrastructure applications.

2/12/13 Morta Security Andreessen Horowitz; Greylock Partners; Norwest Venture Partners; Data Collective

NA Morta Security is a stealth-mode start-up developing a new paradigm to counter advanced cyberthreats.

1/23/13 Apperian Intel Capital $4.6 Apperian develops cloud-based mobile application management solutions for developers and enterprise IT professionals.

1/22/13 Fixmo Samsung Ventures NA Fixmo develops mobile risk management solutions for organizations to identify, mitigate, and manage risks associated with mobile devices in the workplace.

Sources: Capital IQ, 451 Research, and Dealogic as of January 16, 2014.


William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorized and regulated by the Financial Services Authority ("FSA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States. This material has been approved for distribution in the United Kingdom by William Blair International Limited, and is directed only at, professional clients and eligible counterparties (as defined in COBS 3.5 and 3.6 of the FSA Handbook). This advertisement is not intended to be investment advice. William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com

January 23, 2014

IT Security Sector – Q4 2013 Update Disclosures 15

Disclosures

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Specialty FinanceIndustry InsightsA review of M&A activity and public market valuation in the consumer and commercial specialty finance sectors

June 2013

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