Feb 6, 2017 - Operates a platform to provide KYC and legal entity reference data services ... Provides a SaaS-based mark
Business & Tech-Enabled Services Sector Summary Week of February 6th , 2017 1
BUSINESS & TECH-ENABLED SERVICES DEAL DASHBOARD $8.6 Billion M&A Volume YTD
369 M&A Transactions YTD
Quarterly M&A Volume ($Bn) and Deal Count
Select M&A Transactions
Volume ($Bn)
$60.0
Announced Date
$48.5
$50.0 $40.0
1/27/2017
$37.1
$31.1
$27.4
Acquirer
Target Government IT Services Business
EV ($MM) $690
1/19/2017
NA
1/17/2017
$413
1/11/2017
NA
1/10/2017
$150
1/6/2017
$200
1/5/2017
$3,312
1/5/2017
NA
1/4/2017
$424
1/3/2017
NA
12/20/2016
$560
120.0%
12/19/2016
NA
110.0%
12/14/2016
$2,871
100.0%
12/12/2016
$435
12/8/2016
$2,043
12/6/2016
NA
$30.0 $20.0
$19.2
$19.1
$24.6
$21.7
$8.6
$10.0 $0.0
Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 YTD '17 1200
Deal Count
1000
966
944
964
995
986
901
929
917
800 600
369
400
200 0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 YTD '17
Last 12 Months Business & Tech-Enabled Services Performance vs. S&P 500 (1) 130.0%
90.0% Feb-16 Mar-16 Apr-16 May-16 Jun-16
Jul-16
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Business & Tech-Enabled Services
Jan-17
Feb-17
S&P 500
Notes: Source: Capital IQ and PitchBook. Market Data as of 2/7/17. 1) Business & Tech-Enabled Services is comprised of all of the companies listed under Public Company Valuations.
2
RECENT STOCK PERFORMANCE Index Performance
Last 12 Months
Last 3 Years 170%
150%
160%
140% 150% 140% 130% 130% 120%
120%
110% 110% 100% 90% 100% 80% 90% Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
Key
Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17
Sector Advertising & Marketing Services Events & Exhibitions Information Services Consulting & Training HR Services Staffing & Recruiting IT & BPO Services Customer Care / CRM Services S&P 500
70% Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17
3 Months 6.4% 3.4% 4.4% 1.9% 7.2% 17.2% 4.0% 4.0% 7.6%
1 Year 20.2% 26.5% 26.1% 24.8% 25.3% 30.4% 13.8% 22.4% 23.7%
3 Years 8.4% 3.2% 35.8% 25.3% 57.1% 14.5% 15.0% 54.9% 27.6%
Notes: Source: Capital IQ. Market Data as of 2/7/17. Advertising & Marketing Services: ADS, GFK, HAV, HUBS, IPG, IPS, JCOM, MDCA, MDP, MONY, OMC, PUB, QNST, RATE, TREE, TSE:4324, WPP, YELP, YOU. Consulting & Training: CBZ, CRAI, EXPO, FC, FCN, GPX, HCKT, HURN, ICFI, NCI, RECN. Customer Care /CRM Services: ATTO, CVG, RCF, SNX, SYKE, TSE:4708, TSE:6183, TSE:9715, TTEC. Events & Exhibitions: GLO, ITE, MCHN, TRS, UBM, VVI. HR Services: ADP, BBSI, NSP, PAYX, TNET. Information Services: ABCO, ACXM, CEB, CLGX, DNB, EFX, EXPN, FDS, FICO, FORR, INF, INFO, IT, MCO, MORN, MSCI, NLSN, NRCI.B, NWSA, REL, SCOR, SPGI, TRI, TRU, VRSK, WKL. IT & BPO Services: ACN, ATO, BSE:507685, BSE:526299, BSE:532819, BSE:533179, CAP, CNDT, CPI, CSC, CTSH, EPAM, EXLS, G, GIB.A, GLOB, HCLTECH, HEXAWARE, IBM, INFY, LXFT, PRFT, SYNT, TCS, TECHM, TSE:4307, TSE:9613, VRTU, WNS Staffing & Recruiting: ADEN, ASGN, HAS, HSII, KELY.A, KFRC, KFY, MAN, PAGE, RAND, RHI, TBI, TSE:2181, TSE:6098.
3
TRADING COMPARABLES Valuation Metrics
EV / 2016E EBITDA
EV / 2016E Revenue 4.5x
16.0x 13.9x
4.0x
13.3x
14.0x
4.3x
11.9x
12.0x
3.4x
3.5x
10.0x 10.0x
9.9x
9.9x
9.6x
3.0x
9.0x 2.5x 2.1x
8.0x
2.0x
2.0x
1.9x
6.0x
1.5x
4.0x
1.1x 0.8x
1.0x
0.5x
2.0x
0.5x
0.0x
0.0x
Information Services
HR Services
Events & Exhibitions
IT & BPO Services
Advertising & Marketing Services
Staffing & Recruiting
Consulting & Customer Training Care / CRM Services
Information Services
Events & Exhibitions
HR Services Advertising & Marketing Services
IT & BPO Services
Consulting & Training
Customer Care / CRM Services
Notes: Source: Capital IQ. Market Data as of 2/7/17. Figures reflect median values. Advertising & Marketing Services: ADS, GFK, HAV, HUBS, IPG, IPS, JCOM, MDCA, MDP, MONY, OMC, PUB, QNST, RATE, TREE, TSE:4324, WPP, YELP, YOU. Consulting & Training: CBZ, CRAI, EXPO, FC, FCN, GPX, HCKT, HURN, ICFI, NCI, RECN. Customer Care /CRM Services: ATTO, CVG, RCF, SNX, SYKE, TSE:4708, TSE:6183, TSE:9715, TTEC. Events & Exhibitions: GLO, ITE, MCHN, TRS, UBM, VVI. HR Services: ADP, BBSI, NSP, PAYX, TNET. Information Services: ABCO, ACXM, CEB, CLGX, DNB, EFX, EXPN, FDS, FICO, FORR, INF, INFO, IT, MCO, MORN, MSCI, NLSN, NRCI.B, NWSA, REL, SCOR, SPGI, TRI, TRU, VRSK, WKL. IT & BPO Services: ACN, ATO, BSE:507685, BSE:526299, BSE:532819, BSE:533179, CAP, CNDT, CPI, CSC, CTSH, EPAM, EXLS, G, GIB.A, GLOB, HCLTECH, HEXAWARE, IBM, INFY, LXFT, PRFT, SYNT, TCS, TECHM, TSE:4307, TSE:9613, VRTU, WNS Staffing & Recruiting: ADEN, ASGN, HAS, HSII, KELY.A, KFRC, KFY, MAN, PAGE, RAND, RHI, TBI, TSE:2181, TSE:6098.
Staffing & Recruiting
4
TRADING COMPARABLES Operational Metrics
2016E EBITDA Margin
2017E / 2016E Rev. Growth 9.0%
35.0%
8.4%
31.0% 8.0%
30.0%
7.3% 6.8%
7.0%
25.3%
6.4%
25.0% 6.0% 20.0% 16.9%
4.7%
5.0%
16.6%
4.0% 4.0%
13.9%
15.0%
5.6%
11.8%
10.8%
3.4%
3.0%
10.0% 6.1%
5.0%
2.0% 1.0% 0.0%
0.0% Information Services
Events & Exhibitions
IT & BPO Services
Advertising & HR Services Consulting & Customer Marketing Training Care / CRM Services Services
Staffing & Recruiting
HR Services
IT & BPO Services
Advertising & Customer Marketing Care / CRM Services Services
Information Consulting & Services Training
Events & Exhibitions
Notes: Source: Capital IQ. Market Data as of 2/7/17. Figures reflect median values. Advertising & Marketing Services: ADS, GFK, HAV, HUBS, IPG, IPS, JCOM, MDCA, MDP, MONY, OMC, PUB, QNST, RATE, TREE, TSE:4324, WPP, YELP, YOU. Consulting & Training: CBZ, CRAI, EXPO, FC, FCN, GPX, HCKT, HURN, ICFI, NCI, RECN. Customer Care /CRM Services: ATTO, CVG, RCF, SNX, SYKE, TSE:4708, TSE:6183, TSE:9715, TTEC. Events & Exhibitions: GLO, ITE, MCHN, TRS, UBM, VVI. HR Services: ADP, BBSI, NSP, PAYX, TNET. Information Services: ABCO, ACXM, CEB, CLGX, DNB, EFX, EXPN, FDS, FICO, FORR, INF, INFO, IT, MCO, MORN, MSCI, NLSN, NRCI.B, NWSA, REL, SCOR, SPGI, TRI, TRU, VRSK, WKL. IT & BPO Services: ACN, ATO, BSE:507685, BSE:526299, BSE:532819, BSE:533179, CAP, CNDT, CPI, CSC, CTSH, EPAM, EXLS, G, GIB.A, GLOB, HCLTECH, HEXAWARE, IBM, INFY, LXFT, PRFT, SYNT, TCS, TECHM, TSE:4307, TSE:9613, VRTU, WNS Staffing & Recruiting: ADEN, ASGN, HAS, HSII, KELY.A, KFRC, KFY, MAN, PAGE, RAND, RHI, TBI, TSE:2181, TSE:6098.
Staffing & Recruiting
5
PUBLIC COMPANY VALUATI ONS Business & Tech-Enabled Services Trading Statistics $MM, Except Per Share Data Stock
LTM
Price
Price Range
2/7/17
Trading Statistics Equity
Cash &
Enterprise
Low
High
Value
Equiv.
Debt
Value
EV / Revenue LTM
CY 16E
Operating Metrics
EV / EBITDA
CY 17E
LTM
CY 16E
Price / EPS
CY 17E
CY 16E
CY Rev. Growth
CY 17E
16E/15A
17E/16E
Gross Margin CY 16E
CY 17E
EBITDA Margin CY 16E
CY 17E
Advertising & Marketing Services WPP plc
$22.94
$15.02
$23.76
$29,378
$2,680
$7,982
$35,253
2.2x
2.0x
1.8x
14.8x
12.0x
10.9x
16.5x
14.4x
14.2%
11.0%
NA
NA
16.8%
Omnicom Group Inc.
84.26
69.72
89.66
19,875
1,969
5,033
22,939
1.5x
1.5x
NA
10.0x
10.0x
NA
17.8x
NA
1.9%
NA
26.8%
NA
14.9%
NA
Publicis Groupe S.A.
66.24
53.98
74.33
14,905
1,137
3,830
17,618
1.7x
1.7x
1.6x
9.3x
9.7x
9.0x
13.9x
12.7x
2.0%
4.8%
37.8%
37.9%
17.3%
17.8%
Dentsu Inc.
16.8%
46.63
39.32
54.21
13,296
2,348
3,154
14,410
1.7x
2.0x
1.8x
8.1x
9.3x
8.7x
18.0x
16.1x
(13.3%)
7.9%
NA
NA
21.4%
21.0%
225.11
176.63
241.69
13,002
1,859
20,949
32,092
4.5x
4.4x
4.2x
20.5x
15.4x
15.2x
13.3x
12.2x
12.5%
6.7%
40.4%
41.7%
28.8%
27.2%
The Interpublic Group of Companies, Inc.
22.97
19.79
24.82
9,119
895
1,741
10,247
1.3x
1.3x
1.3x
9.6x
9.3x
8.7x
17.5x
15.9x
3.0%
3.2%
38.3%
38.4%
14.1%
14.5%
j2 Global, Inc.
84.97
55.43
87.15
4,083
325
599
4,357
5.3x
5.1x
3.8x
12.6x
11.2x
8.9x
17.2x
14.2x
19.7%
34.3%
83.4%
82.1%
45.3%
42.4%
Havas SA
8.93
6.92
9.46
3,746
623
718
3,855
1.6x
1.6x
1.5x
10.1x
9.7x
9.1x
18.1x
16.8x
3.8%
4.4%
NA
NA
16.4%
16.7%
Yelp Inc.
41.69
14.53
43.41
3,271
432
-
2,839
4.2x
4.0x
3.2x
NM
25.0x
17.4x
NM
38.9x
29.7%
25.7%
91.6%
92.0%
15.9%
18.3%
Meredith Corporation
61.15
38.07
62.40
2,721
44
676
3,352
2.0x
2.0x
2.0x
9.4x
9.2x
9.5x
15.5x
16.3x
4.8%
(1.4%)
NA
NA
21.6%
21.1%
4.20
2.81
4.41
2,305
26
12
2,292
6.2x
5.8x
5.5x
17.5x
15.1x
13.9x
21.7x
20.2x
11.6%
6.9%
77.6%
78.0%
38.6%
39.2%
HubSpot, Inc.
54.35
27.00
59.97
1,935
114
1
1,822
7.4x
6.8x
5.2x
NM
NM
NM
NM
NM
47.7%
30.3%
77.8%
78.3%
NM
0.4%
GfK SE
46.51
28.33
47.26
1,698
190
519
2,043
1.3x
1.3x
1.3x
38.7x
8.7x
8.1x
19.1x
16.6x
(2.5%)
1.3%
31.0%
33.3%
14.6%
15.4%
Alliance Data Systems Corporation
Moneysupermarket.com Group PLC
Ipsos SA
33.42
17.86
33.99
1,393
135
680
1,959
1.0x
1.0x
1.0x
8.8x
8.9x
8.2x
12.5x
11.5x
0.9%
2.6%
64.6%
64.7%
11.5%
12.1%
113.50
52.11
114.95
1,338
177
-
1,161
3.2x
3.0x
2.3x
23.6x
17.2x
12.3x
36.7x
26.2x
49.9%
34.3%
96.4%
96.6%
17.7%
18.5%
10.60
6.59
12.93
955
136
295
1,115
2.7x
2.5x
2.2x
12.0x
9.8x
9.0x
16.9x
15.4x
18.8%
13.2%
48.8%
48.6%
25.9%
24.9%
MDC Partners Inc.
6.90
2.75
23.90
369
22
951
1,426
1.1x
1.0x
1.0x
10.3x
8.5x
7.0x
NM
11.2x
3.1%
5.8%
NA
NA
12.2%
14.1%
YouGov plc
3.31
1.56
3.37
345
19
-
326
3.0x
2.7x
2.4x
30.8x
20.2x
18.5x
28.0x
26.1x
17.8%
13.1%
77.5%
78.0%
13.5%
13.0%
QuinStreet, Inc.
3.22
2.61
4.32
147
54
15
109
0.4x
0.4x
0.4x
NM
11.0x
7.3x
NM
NM
6.5%
2.5%
9.6%
10.9%
3.3%
4.8%
2.7x 2.0x
2.6x 2.0x
2.3x 1.9x
15.4x 11.1x
12.2x 9.9x
10.7x 9.0x
18.8x 17.5x
17.8x 16.0x
12.2% 6.5%
11.5% 6.8%
57.3% 56.7%
60.0% 64.7%
19.4% 16.6%
18.8% 17.3%
LendingTree, Inc. Bankrate, Inc.
Mean Median Events & Exhibitions UBM plc
$8.80
$6.70
$9.36
$3,465
$603
$649
$3,548
3.6x
3.4x
2.9x
13.3x
11.9x
9.7x
19.0x
14.6x
9.6%
15.8%
27.6%
30.6%
28.4%
30.1%
Viad Corp
42.95
26.29
47.40
872
53
194
1,028
0.9x
0.9x
0.8x
8.5x
8.2x
7.8x
18.1x
17.4x
10.4%
2.1%
NA
NA
10.4%
10.8%
1.99
1.47
2.26
524
19
93
629
3.8x
3.7x
3.6x
15.7x
14.7x
15.8x
15.5x
17.6x
(2.9%)
4.0%
44.1%
42.5%
25.3%
22.7%
GL Events
19.88
15.05
20.01
457
231
678
941
0.9x
0.9x
0.9x
7.2x
7.5x
7.1x
12.7x
12.0x
3.1%
1.6%
93.7%
93.7%
12.1%
12.6%
MCH Group AG
71.36
58.27
77.23
429
178
301
552
1.3x
NA
NA
6.4x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Tarsus Group plc
3.28
2.77
3.61
369
11
79
442
4.4x
5.5x
2.9x
13.0x
17.1x
8.2x
18.8x
9.8x
(22.0%)
89.2%
NA
NA
32.4%
35.9%
2.5x 2.4x
2.9x 3.4x
2.2x 2.9x
10.7x 10.7x
11.9x 11.9x
9.7x 8.2x
16.8x 18.1x
14.3x 14.6x
(0.4%) 3.1%
22.5% 4.0%
55.1% 44.1%
55.6% 42.5%
21.7% 25.3%
22.4% 22.7%
ITE Group plc
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 2/7/17.
6
PUBLIC COMPANY VALUATI ONS Business & Tech-Enabled Services Trading Statistics – continued $MM, Except Per Share Data Stock
LTM
Price
Price Range
2/7/17
Trading Statistics Equity
Cash & Equiv.
Low
High
Value
Enterprise Debt
Value
EV / Revenue LTM
CY 16E
Operating Metrics
EV / EBITDA
CY 17E
LTM
CY 16E
Price / EPS
CY 17E
CY 16E
CY Rev. Growth
CY 17E
16E/15A
17E/16E
Gross Margin CY 16E
CY 17E
EBITDA Margin CY 16E
CY 17E
Information Services RELX PLC
$18.21
$7.87
$18.89
$37,057
$263
$6,012
$42,853
5.5x
5.1x
4.7x
18.4x
14.6x
12.6x
20.7x
18.4x
12.7%
8.1%
65.0%
65.1%
34.9%
S&P Global, Inc.
125.84
81.95
128.49
32,605
2,392
3,564
34,857
6.2x
6.2x
NA
14.1x
14.1x
13.3x
23.8x
NA
5.3%
NA
NA
NA
44.1%
NA
44.59
36.16
45.71
32,440
956
9,476
41,442
3.4x
3.7x
3.6x
16.2x
13.2x
12.5x
21.6x
19.1x
(7.8%)
1.2%
NA
NA
27.9%
29.2%
Thomson Reuters Corporation Moody's Corporation
37.4%
107.06
77.76
110.83
20,470
2,058
3,418
22,037
6.2x
6.2x
5.8x
13.9x
13.7x
12.9x
NA
NA
2.5%
5.7%
71.4%
71.9%
44.9%
45.2%
Experian plc
19.47
13.28
20.19
18,365
166
3,327
21,540
4.7x
4.6x
4.5x
15.4x
13.5x
13.4x
21.6x
21.3x
NA
2.5%
56.5%
55.0%
34.3%
33.8%
IHS Markit Ltd.
39.51
32.78
39.98
15,881
139
3,402
19,202
7.0x
7.0x
5.4x
25.1x
19.6x
13.9x
22.4x
19.2x
25.1%
29.0%
65.3%
63.6%
35.9%
39.3%
Nielsen Holdings plc
41.86
40.28
55.94
14,962
446
7,969
22,674
3.6x
3.6x
3.6x
14.5x
11.8x
11.5x
15.2x
15.4x
2.1%
1.0%
58.8%
59.1%
30.5%
30.9%
121.14
91.72
136.97
14,508
112
2,843
17,281
5.7x
5.5x
5.1x
16.7x
15.4x
14.2x
22.1x
20.4x
18.0%
7.8%
64.9%
65.7%
35.6%
36.0%
Verisk Analytics, Inc.
83.01
65.02
86.00
13,900
168
2,286
16,018
7.0x
8.0x
7.6x
15.5x
16.0x
15.0x
26.9x
24.8x
(3.3%)
5.6%
65.3%
65.7%
50.0%
50.6%
Wolters Kluwer N.V.
38.98
30.34
41.35
11,181
842
2,813
13,157
2.9x
2.9x
2.7x
10.9x
11.0x
10.3x
17.8x
16.2x
1.6%
5.0%
68.7%
68.7%
26.2%
26.7%
MSCI Inc.
92.65
62.27
94.80
8,459
974
2,074
9,559
8.3x
8.3x
7.7x
16.8x
16.8x
15.2x
31.4x
26.1x
6.9%
7.5%
78.2%
78.3%
49.5%
50.9%
Gartner, Inc.
98.68
79.00
105.45
8,152
466
751
8,438
3.5x
3.4x
3.1x
20.6x
17.9x
16.4x
33.4x
30.6x
13.5%
10.4%
61.5%
61.8%
19.2%
19.0%
News Corporation
12.20
10.21
14.68
7,096
1,499
377
6,190
0.8x
0.8x
0.8x
9.5x
6.9x
7.2x
38.9x
31.7x
(2.9%)
(2.1%)
NA
NA
11.0%
10.7%
174.01
135.95
183.17
6,885
194
365
7,056
6.2x
6.2x
5.8x
17.5x
17.3x
16.9x
25.6x
23.9x
10.8%
6.0%
56.9%
56.5%
35.7%
34.4%
Informa plc
8.31
7.13
9.51
6,844
64
1,381
8,163
5.3x
4.8x
3.7x
17.0x
14.7x
11.1x
15.9x
14.0x
12.7%
28.9%
NA
NA
32.5%
33.5%
TransUnion
32.80
20.43
35.79
6,001
163
2,420
8,383
5.1x
4.9x
4.6x
15.5x
13.4x
12.1x
23.1x
20.9x
12.5%
7.8%
66.0%
66.6%
37.0%
37.9%
The Dun & Bradstreet Corporation
122.41
85.99
141.57
4,503
327
1,606
5,795
3.4x
3.4x
3.3x
13.7x
11.7x
11.3x
16.6x
16.0x
4.2%
2.9%
66.7%
66.7%
29.0%
29.2%
Fair Isaac Corporation
123.31
90.35
132.95
3,830
88
621
4,362
4.8x
4.9x
4.7x
21.1x
20.8x
18.1x
25.3x
24.8x
5.2%
5.0%
70.1%
69.3%
23.4%
25.7%
Morningstar, Inc.
76.98
67.74
89.44
3,315
265
60
3,110
3.9x
3.9x
3.8x
12.5x
12.4x
11.5x
26.8x
24.7x
0.3%
4.5%
56.5%
57.5%
31.6%
32.8%
CoreLogic, Inc.
36.24
31.71
43.43
3,130
101
1,623
4,653
2.5x
2.4x
2.5x
11.9x
9.3x
9.4x
15.5x
15.1x
26.6%
(1.8%)
48.1%
50.6%
25.8%
26.0%
CEB Inc.
76.35
47.33
77.30
2,462
136
886
3,212
3.4x
3.4x
3.3x
16.6x
13.1x
12.7x
20.3x
19.7x
2.5%
2.9%
63.9%
64.5%
25.7%
25.8%
Acxiom Corporation
28.37
18.76
30.40
2,208
138
237
2,307
2.6x
2.6x
2.5x
25.4x
15.0x
13.9x
43.2x
39.5x
5.3%
5.0%
41.9%
44.8%
17.6%
18.1%
The Advisory Board Company
46.70
18.87
51.23
1,875
55
565
2,385
3.0x
3.0x
3.0x
20.5x
12.7x
12.1x
26.5x
24.9x
4.9%
(0.5%)
51.2%
51.7%
23.2%
24.6%
comScore, Inc.
22.86
20.81
43.53
1,307
147
33
1,193
3.2x
2.4x
2.0x
32.1x
10.0x
7.9x
14.1x
12.2x
36.0%
17.0%
69.5%
71.1%
23.8%
25.9%
National Research Corporation
40.12
32.18
46.37
981
29
4
956
8.9x
8.7x
8.1x
27.9x
27.4x
25.3x
NA
NA
7.1%
8.0%
58.2%
58.0%
31.8%
31.9%
Forrester Research Inc.
40.65
29.97
44.40
741
133
-
607
1.9x
1.9x
1.8x
17.0x
15.1x
13.4x
33.5x
32.3x
3.7%
6.1%
60.2%
60.5%
12.4%
13.2%
4.6x 4.3x
4.5x 4.3x
4.1x 3.7x
17.6x 16.6x
14.5x 13.9x
13.2x 12.8x
24.3x 22.7x
22.2x 20.9x
8.2% 5.3%
6.9% 5.6%
62.0% 64.4%
62.4% 64.0%
30.5% 31.0%
30.7% 30.9%
Equifax Inc.
FactSet Research Systems Inc.
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 2/7/17.
7
PUBLIC COMPANY VALUATI ONS Business & Tech-Enabled Services Trading Statistics – continued $MM, Except Per Share Data Stock
LTM
Price
Price Range
2/7/17
Trading Statistics Equity
Cash & Equiv.
Low
High
Value
Enterprise Debt
Value
EV / Revenue LTM
CY 16E
Operating Metrics
EV / EBITDA
CY 17E
LTM
CY 16E
Price / EPS
CY 17E
CY 16E
CY Rev. Growth
CY 17E
16E/15A
17E/16E
Gross Margin CY 16E
CY 17E
EBITDA Margin CY 16E
CY 17E
Consulting & Training FTI Consulting, Inc.
$41.75
$31.99
$47.12
$1,737
$225
$470
$1,982
1.1x
1.1x
1.1x
9.8x
9.5x
9.4x
18.3x
18.3x
1.2%
2.9%
33.7%
33.6%
11.6%
11.4%
Exponent, Inc.
57.75
45.00
64.80
1,478
174
-
1,304
4.4x
4.4x
4.2x
19.2x
17.0x
16.1x
33.9x
32.4x
0.5%
5.1%
36.8%
37.6%
25.7%
25.9%
Navigant Consulting, Inc.
24.01
14.07
27.86
1,130
7
161
1,284
1.4x
1.4x
1.3x
9.3x
9.1x
8.6x
19.5x
18.0x
12.0%
6.2%
32.9%
32.8%
15.0%
15.0%
ICF International, Inc.
51.45
31.27
59.55
975
10
281
1,247
1.1x
1.0x
1.0x
11.3x
10.8x
9.9x
17.7x
16.2x
5.3%
4.1%
37.5%
38.0%
9.6%
10.2%
Huron Consulting Group Inc.
44.80
41.20
65.00
933
9
326
1,250
1.7x
1.7x
1.6x
8.2x
9.1x
8.6x
13.6x
13.3x
5.0%
4.4%
37.7%
37.9%
18.8%
19.0%
CBIZ, Inc.
12.95
9.30
14.05
682
1
221
902
1.1x
1.1x
1.1x
10.7x
9.6x
9.0x
17.5x
16.0x
6.1%
4.7%
12.9%
13.5%
11.8%
12.0%
Resources Connection, Inc.
16.30
12.30
19.80
484
64
58
479
0.8x
0.8x
0.8x
9.4x
9.3x
10.1x
22.2x
22.1x
(1.1%)
1.0%
38.6%
38.0%
8.8%
8.0%
The Hackett Group, Inc.
16.37
12.76
18.35
467
14
13
466
1.8x
1.6x
1.5x
12.8x
10.1x
9.5x
17.8x
16.2x
22.1%
5.6%
38.3%
38.6%
16.0%
16.2%
GP Strategies Corporation
25.65
19.59
30.00
428
16
59
472
1.0x
1.0x
0.9x
11.9x
12.4x
10.2x
22.2x
18.2x
(0.3%)
5.7%
16.3%
17.1%
7.8%
8.9%
CRA International, Inc.
33.71
16.25
37.48
279
25
-
254
0.8x
0.8x
0.7x
10.1x
4.9x
4.7x
24.7x
22.3x
6.4%
5.6%
29.9%
29.5%
16.2%
15.9%
Franklin Covey Co.
17.65
13.45
22.45
244
8
42
278
1.4x
1.4x
1.4x
19.0x
14.3x
24.9x
NM
NM
(5.1%)
(1.7%)
67.8%
66.3%
9.9%
5.8%
1.5x 1.1x
1.5x 1.1x
1.4x 1.1x
12.0x 10.7x
10.5x 9.6x
11.0x 9.5x
20.7x 18.9x
19.3x 18.1x
4.7% 5.0%
4.0% 4.7%
34.8% 36.8%
34.8% 37.6%
13.8% 11.8%
13.5% 12.0%
Mean Median HR Services Automatic Data Processing, Inc.
$96.29
$79.08
$104.09
$43,225
$2,746
$2,003
$42,481
3.5x
3.5x
3.3x
15.5x
16.1x
16.0x
27.2x
26.2x
7.5%
5.5%
48.4%
45.4%
21.9%
20.8%
Paychex, Inc.
57.57
46.08
62.18
20,659
293
103
20,469
6.7x
6.7x
6.3x
15.6x
15.6x
15.1x
27.1x
26.0x
8.1%
6.6%
70.8%
70.6%
42.7%
41.5%
TriNet Group, Inc.
24.48
11.10
26.64
1,685
161
468
1,993
0.7x
0.7x
0.6x
13.8x
10.9x
9.9x
20.6x
17.5x
15.2%
12.0%
71.6%
71.8%
6.0%
5.9%
Insperity, Inc.
71.65
41.83
82.18
1,524
225
104
1,404
0.5x
0.5x
0.4x
12.2x
9.9x
8.5x
20.1x
17.4x
13.1%
10.2%
16.8%
17.0%
4.8%
5.1%
Barrett Business Services, Inc.
61.89
22.55
66.93
448
28
5
425
0.5x
NA
NA
11.8x
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
2.4x 0.7x
2.8x 2.1x
2.6x 2.0x
13.8x 13.8x
13.1x 13.3x
12.4x 12.5x
23.8x 23.8x
21.8x 21.7x
10.9% 10.6%
8.6% 8.4%
51.9% 59.6%
51.2% 58.0%
18.8% 13.9%
18.3% 13.3%
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 2/7/17.
8
PUBLIC COMPANY VALUATI ONS Business & Tech-Enabled Services Trading Statistics – continued $MM, Except Per Share Data Stock
LTM
Price
Price Range
2/7/17
Trading Statistics Equity
Cash &
Enterprise
Low
High
Value
Equiv.
Debt
Value
EV / Revenue LTM
CY 16E
Operating Metrics
EV / EBITDA
CY 17E
LTM
CY 16E
Price / EPS
CY 17E
CY 16E
CY 17E
CY Rev. Growth 16E/15A
17E/16E
Gross Margin CY 16E
CY 17E
EBITDA Margin CY 16E
CY 17E
Staffing & Recruiting Recruit Holdings Co.,Ltd.
$45.92
$28.08
$46.18
$25,582
$2,458
$1,838
$24,998
1.7x
1.6x
1.3x
13.2x
13.0x
12.5x
35.3x
36.5x
16.4%
19.5%
49.0%
47.9%
12.3%
10.7%
Adecco Group AG
70.96
45.14
73.17
12,146
1,156
2,463
13,460
0.6x
0.6x
0.5x
10.8x
10.4x
9.9x
15.2x
14.1x
2.8%
3.6%
18.9%
18.8%
5.3%
5.4%
Randstad Holding NV
57.82
33.93
59.71
10,573
632
1,232
11,174
0.5x
0.5x
0.5x
11.1x
10.4x
9.5x
14.9x
13.5x
6.9%
7.7%
18.8%
19.5%
4.9%
5.0%
ManpowerGroup Inc.
97.36
57.26
98.99
6,529
599
825
6,840
0.3x
0.3x
0.3x
8.2x
8.4x
8.1x
15.9x
14.8x
1.8%
1.8%
17.0%
17.0%
4.1%
4.2%
Robert Half International Inc.
47.37
34.34
50.98
6,009
292
1
5,717
1.1x
1.1x
1.1x
9.3x
9.2x
9.4x
17.6x
17.7x
3.5%
(0.0%)
41.2%
41.1%
11.8%
11.5%
Temp Holdings Co., Ltd.
17.84
11.46
18.07
4,194
582
252
3,984
0.8x
0.8x
0.7x
11.0x
11.4x
10.7x
23.4x
22.5x
17.5%
11.9%
23.8%
23.8%
6.9%
6.5%
1.91
1.14
2.06
2,758
78
33
2,712
0.5x
0.5x
0.5x
7.5x
10.4x
9.7x
17.2x
16.8x
12.0%
3.1%
20.2%
18.9%
4.7%
4.9%
46.18
29.34
47.16
2,445
17
659
3,086
1.3x
1.3x
1.2x
12.0x
10.7x
9.9x
16.7x
15.6x
17.9%
6.7%
32.8%
32.8%
11.8%
12.1%
Hays plc On Assignment, Inc. PageGroup plc
5.36
1.95
5.54
1,672
103
11
1,580
1.1x
1.1x
1.0x
12.0x
10.9x
10.7x
18.9x
18.8x
13.0%
5.6%
51.6%
52.8%
9.7%
9.3%
Korn/Ferry International
28.00
18.57
31.53
1,608
280
266
1,597
1.0x
1.0x
1.0x
8.9x
6.9x
6.6x
12.6x
12.4x
35.5%
2.8%
31.1%
29.9%
14.7%
14.9%
TrueBlue, Inc.
24.00
16.50
27.57
990
25
139
1,105
0.4x
0.4x
0.4x
7.2x
7.5x
8.0x
12.0x
13.1x
0.9%
(6.0%)
24.7%
25.2%
5.4%
5.4%
Kelly Services, Inc.
21.26
15.94
23.61
813
30
-
783
0.1x
0.1x
0.1x
8.7x
8.4x
8.1x
13.8x
14.0x
(3.7%)
(1.6%)
17.1%
17.3%
1.8%
1.9%
Kforce Inc.
21.35
14.87
24.55
550
1
116
664
0.5x
0.5x
0.5x
10.1x
9.3x
9.1x
15.4x
14.1x
0.1%
3.0%
31.0%
30.8%
5.4%
5.4%
Heidrick & Struggles International, Inc.
21.50
16.23
25.19
400
100
-
300
0.5x
0.5x
0.5x
6.0x
5.3x
5.2x
22.8x
19.8x
7.1%
3.8%
31.1%
30.9%
9.9%
9.8%
0.8x 0.5x
0.7x 0.5x
0.7x 0.5x
9.7x 9.7x
9.5x 9.9x
9.1x 9.4x
18.0x 16.3x
17.4x 15.2x
9.4% 7.0%
4.4% 3.4%
29.2% 27.8%
29.0% 27.5%
7.8% 6.1%
7.6% 6.0%
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 2/7/17.
9
PUBLIC COMPANY VALUATI ONS Business & Tech-Enabled Services Trading Statistics – continued $MM, Except Per Share Data Stock
LTM
Price
Price Range
Trading Statistics Equity
Cash &
Enterprise
EV / Revenue LTM
CY 16E
Operating Metrics
EV / EBITDA
CY 17E
LTM
CY 16E
Price / EPS
CY 17E
CY 16E
CY Rev. Growth
CY 17E
16E/15A
17E/16E
Gross Margin CY 16E
CY 17E
EBITDA Margin
2/7/17
Low
High
Value
Equiv.
Debt
Value
CY 16E
CY 17E
$178.46
$116.90
$179.25
$169,690
$8,527
$42,168
$203,477
2.5x
2.6x
2.6x
11.6x
10.5x
10.4x
13.2x
12.9x
(2.5%)
(1.2%)
49.1%
48.7%
24.2%
24.9%
115.92
91.40
125.72
72,175
4,080
27
68,740
2.1x
2.1x
2.0x
12.2x
12.2x
11.7x
20.9x
19.7x
7.3%
4.8%
31.3%
31.3%
16.8%
16.7%
Tata Consultancy Services Limited
33.32
30.46
40.75
65,664
5,771
38
59,984
3.5x
3.5x
3.2x
12.6x
12.6x
12.4x
17.1x
16.8x
11.7%
8.2%
45.2%
44.4%
27.5%
25.8%
Cognizant Technology Solutions Corporation
53.79
45.44
63.23
32,634
4,859
897
28,672
2.2x
2.1x
1.9x
10.8x
10.6x
9.7x
15.8x
14.7x
8.9%
9.3%
39.8%
39.8%
20.0%
20.0%
Infosys Limited
13.99
13.38
18.99
31,975
4,487
-
27,488
2.7x
2.7x
2.5x
9.9x
10.0x
9.9x
15.2x
15.0x
9.5%
8.0%
38.1%
37.9%
27.1%
25.5%
HCL Technologies Limited
12.11
10.49
13.02
17,090
1,676
99
15,539
2.3x
2.3x
2.0x
10.4x
10.2x
10.1x
14.4x
14.0x
9.4%
13.1%
34.7%
33.8%
22.6%
20.2%
Wipro Limited
6.79
6.09
9.01
16,419
4,922
2,321
13,854
1.7x
1.7x
1.6x
8.6x
8.3x
8.5x
13.3x
13.3x
9.9%
6.8%
31.0%
29.4%
20.6%
18.8%
CGI Group Inc.
48.08
40.71
51.04
14,236
239
1,398
15,396
1.9x
1.9x
1.9x
11.1x
10.2x
10.1x
17.9x
17.0x
2.6%
2.0%
NA
NA
18.6%
18.4%
NTT Data Corporation
48.86
40.79
53.94
13,705
1,689
5,486
17,769
1.2x
1.2x
NA
7.7x
7.5x
7.3x
22.4x
NA
4.3%
NA
24.7%
NA
16.1%
NA
Cap Gemini S.A.
81.60
72.37
95.99
13,569
1,591
4,143
16,148
1.2x
1.2x
1.2x
9.8x
8.9x
8.5x
14.4x
13.2x
5.4%
3.6%
30.5%
30.3%
13.5%
13.6%
IT & BPO Services International Business Machines Corporation Accenture plc
Atos SE
107.64
66.62
111.70
11,068
1,861
1,608
11,102
0.9x
0.9x
0.8x
7.1x
7.1x
6.6x
14.3x
12.9x
9.8%
4.6%
54.1%
54.5%
12.5%
12.9%
Computer Sciences Corporation
70.69
24.27
71.79
9,954
1,111
2,924
12,055
1.6x
1.6x
1.6x
11.8x
10.1x
9.2x
27.5x
25.3x
4.0%
3.1%
30.0%
27.9%
15.9%
16.9%
Nomura Research Institute, Ltd.
33.97
26.42
35.17
8,421
1,255
520
7,787
2.1x
2.1x
2.0x
10.2x
10.0x
10.1x
19.4x
20.4x
(0.8%)
3.3%
31.2%
33.4%
21.1%
20.2%
6.99
6.02
8.37
6,803
1,201
193
5,863
1.4x
1.4x
1.2x
9.1x
8.9x
8.8x
14.1x
13.9x
9.6%
12.7%
30.2%
30.1%
15.6%
14.0%
25.06
22.58
28.52
5,031
421
866
5,478
2.2x
2.1x
2.0x
13.6x
12.6x
11.5x
17.4x
16.0x
4.6%
7.8%
39.3%
39.5%
16.9%
17.2%
6.21
5.38
14.08
4,134
1,247
3,821
6,799
1.1x
1.1x
1.1x
7.2x
7.9x
8.0x
8.0x
8.4x
(0.5%)
(0.7%)
28.0%
28.2%
14.4%
14.3%
EPAM Systems, Inc.
65.84
54.53
78.40
3,360
331
33
3,063
2.8x
2.6x
2.2x
18.6x
14.6x
12.3x
22.5x
19.4x
27.1%
21.0%
36.8%
36.9%
18.0%
17.7%
Conduent Incorporated
14.57
13.10
16.26
2,956
148
1,154
3,962
0.6x
0.6x
0.6x
7.7x
6.1x
5.8x
21.2x
19.3x
(2.0%)
(3.4%)
16.3%
15.9%
9.9%
10.8%
Luxoft Holding, Inc.
59.20
46.58
66.18
1,964
80
0
1,884
2.6x
2.5x
2.1x
19.3x
14.3x
13.8x
20.9x
20.4x
21.4%
20.5%
42.1%
40.8%
17.6%
15.0%
8.48
6.00
9.23
1,784
498
54
1,340
1.5x
1.5x
1.4x
9.4x
8.9x
9.3x
15.0x
14.5x
2.5%
5.6%
25.7%
24.5%
16.5%
14.9%
Syntel, Inc.
20.70
18.00
50.92
1,741
88
479
2,132
2.2x
2.2x
2.2x
7.7x
7.8x
7.5x
8.2x
8.8x
(0.4%)
1.2%
38.0%
38.7%
28.5%
29.2%
Exlservice Holdings, Inc.
45.25
42.00
54.78
1,516
214
45
1,348
2.0x
2.0x
1.8x
13.3x
11.1x
9.5x
19.4x
17.6x
8.9%
10.2%
34.9%
35.6%
17.8%
18.7%
WNS (Holdings) Ltd.
28.55
24.82
32.82
1,426
153
-
1,273
2.2x
2.3x
2.1x
14.0x
11.9x
11.2x
27.2x
25.1x
0.9%
8.8%
37.1%
34.8%
19.3%
18.7%
Globant S.A.
33.31
22.51
47.19
1,149
55
0
1,094
3.6x
3.4x
2.8x
19.7x
17.0x
14.2x
29.1x
23.2x
26.7%
20.3%
42.3%
41.6%
20.0%
19.9%
MindTree Limited
6.72
5.94
11.93
1,129
91
1
1,039
1.3x
1.3x
1.2x
9.4x
9.1x
9.8x
15.2x
17.2x
23.1%
6.8%
40.9%
35.0%
14.6%
12.8%
Hexaware Technologies Limited
2.92
2.64
4.06
882
67
-
815
1.6x
1.6x
1.4x
9.7x
9.6x
8.3x
14.6x
12.8x
12.4%
13.0%
35.0%
32.9%
16.2%
16.6%
25.31
18.03
38.31
758
201
190
814
1.1x
1.0x
0.9x
19.0x
22.0x
18.7x
18.6x
19.7x
45.2%
14.4%
34.6%
28.1%
4.6%
4.7%
8.94
7.44
11.83
715
83
0
633
1.5x
1.5x
1.3x
10.0x
9.5x
9.3x
15.6x
15.6x
32.0%
15.3%
39.7%
36.1%
15.9%
14.2%
17.60
14.15
22.66
635
10
28
652
1.4x
1.4x
1.3x
11.9x
10.0x
8.9x
16.3x
14.7x
5.5%
4.2%
31.2%
32.1%
13.5%
14.6%
1.9x 1.9x
1.9x 1.9x
1.7x 1.8x
11.5x 10.4x
10.7x 10.0x
10.1x 9.7x
17.6x 16.3x
16.5x 15.8x
10.2% 8.9%
8.0% 7.3%
35.4% 35.0%
34.9% 34.8%
17.8% 16.9%
17.4% 17.1%
Tech Mahindra Limited Genpact Limited Capita plc
MphasiS Limited
Virtusa Corporation Persistent Systems Limited Perficient, Inc.
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 2/7/17.
10
PUBLIC COMPANY VALUATI ONS Business & Tech-Enabled Services Trading Statistics – continued $MM, Except Per Share Data Stock
LTM
Price
Price Range
Trading Statistics Equity
Cash &
Value
Equiv.
Enterprise Debt
Value
EV / Revenue LTM
CY 16E
Operating Metrics
EV / EBITDA
CY 17E
LTM
CY 16E
Price / EPS
CY 17E
CY 16E
CY 17E
CY Rev. Growth 16E/15A
17E/16E
Gross Margin CY 16E
CY 17E
EBITDA Margin
2/7/17
Low
High
CY 16E
CY 17E
Teleperformance SE
$109.62
$71.25
$110.21
$6,206
$315
$653
$6,553
1.8x
1.7x
1.4x
13.1x
10.9x
8.4x
22.9x
17.5x
8.0%
16.3%
NA
NA
15.3%
SYNNEX Corporation
117.76
77.54
129.24
4,684
386
974
5,273
0.4x
0.4x
0.4x
10.2x
10.6x
9.1x
17.9x
15.5x
5.5%
6.4%
9.0%
9.5%
3.5%
3.9%
Convergys Corporation
24.78
23.38
30.92
2,363
141
300
2,522
0.9x
0.9x
0.8x
6.4x
6.8x
6.6x
13.4x
12.7x
(0.9%)
2.7%
36.5%
36.6%
12.6%
12.8%
TeleTech Holdings, Inc.
29.65
24.19
31.97
1,378
61
129
1,453
1.1x
1.1x
1.1x
9.4x
9.0x
7.7x
21.7x
17.3x
(1.3%)
4.4%
26.2%
27.4%
12.7%
14.3%
Sykes Enterprises, Incorporated
27.50
25.77
31.37
1,167
283
272
1,155
0.8x
0.8x
0.7x
7.0x
7.3x
6.5x
15.2x
13.7x
13.7%
6.7%
35.2%
35.3%
10.8%
11.5%
transcosmos inc.
23.16
19.96
28.98
961
264
136
864
0.4x
0.4x
0.4x
8.3x
8.7x
8.9x
17.8x
18.7x
9.5%
9.2%
NA
NA
4.7%
4.2%
Atento S.A.
9.10
6.77
14.64
671
178
614
1,107
0.6x
0.6x
0.6x
5.3x
5.3x
4.8x
11.7x
10.0x
(8.7%)
4.2%
NA
NA
11.7%
12.4%
Relia, Inc.
9.47
7.85
10.83
653
122
45
575
0.7x
0.7x
0.6x
10.9x
10.4x
10.1x
20.3x
21.0x
18.1%
17.1%
14.9%
14.6%
6.8%
6.0%
BELLSYSTEM24 Holdings, Inc.
8.79
6.54
13.22
643
52
709
1,300
1.4x
1.4x
1.3x
13.7x
13.4x
13.4x
13.3x
13.8x
2.7%
3.2%
19.5%
18.6%
10.1%
9.8%
0.9x 0.8x
0.9x 0.8x
0.8x 0.7x
9.4x 9.4x
9.2x 9.0x
8.4x 8.4x
17.1x 17.8x
15.6x 15.5x
5.2% 5.5%
7.8% 6.4%
23.5% 22.8%
23.7% 23.0%
9.8% 10.8%
10.2% 11.5%
Customer Care / CRM Services
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 2/7/17.
17.1%
11
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select M&A Transactions (2017 YTD) ($MM) Announced Date
Acquirer
Target
Enterprise Value (EV)
2/7/2017
Webster Capital
Pharmalogics Recruiting
NA
Recruitment firm for life sciences companies worldwide
2/6/2017
Mountaingate Capital (Investment)
Elite SEM
NA
Performance-driven digital marketing agency
2/6/2017
Thomson Reuters Corporation
Clarient Global LLC
NA
Operates a platform to provide KYC and legal entity reference data services
2/6/2017
Thomson Reuters Corporation
Avox Limited
NA
London-based supplier of legal entity data, hierarchies, and identifiers on financial entities globally
2/6/2017
Salient CRGT, Inc.
Information Innovators Inc.
NA
Provides IT services and solutions for the Department of Defense and other civilian agencies of the federal government
2/2/2017
GTB Agency, LLC
Zubi Advertising Services, Inc.
NA
Full-service advertising agency that focuses on the Hispanic market in the U.S.
2/2/2017
GP Strategies Corporation
McKinney Rogers International Limited
NA
Provides corporate strategy and consulting services
2/2/2017
Pamlico Capital (Investment)
Winsight, LLC
NA
Provides market intelligence, professional events, and media to global restaurant, noncommercial foodservice, and convenience retail industries
1/31/2017
Centerfield Media Holdings, LLC
Qology Direct, LLC
NA
Provides performance-based marketing services, fka Saveology.com
1/31/2017
CRA International, Inc.
C1 Consulting LLC
NA
Provides life sciences strategy consulting services for the pharmaceutical and biotech industries
1/31/2017
Accenture plc
InvestTech Systems Consulting, LLC
NA
Provides investment, wealth, and data management solutions and services for global investment managers
1/30/2017
The Wicks Group of Companies, L.L.C.
Gladson Interactive, Inc.
NA
Provides syndicated CPG product images and information
1/30/2017
CIP Capital
Compliance Solutions Strategies
NA
Provides compliance and regulatory services to the asset management and securities industries
1/30/2017
HGGC, LLC
Davies Group Limited
$112
1/27/2017
FactSet Research Systems Inc.
Interactive Data Managed Solutions, LLC
NA
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 2/7/17.
Target Description
Provider of claims outsourcing and loss adjusting services to insurance companies, brokers, managing general agents, and self-insured entities Offers real-time market data desktops, customizable web-based portals, and a broad range of mobile solutions for wealth management industry
12
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select M&A Transactions (2017 YTD) – continued ($MM) Announced Date
Acquirer
Target
Enterprise Value (EV)
1/27/2017
Symphony Technology Group
Fishbowl Inc.
NA
1/27/2017
Veritas Capital
Harris Corporation, Government IT Services Business
$690
1/27/2017
Ebates, Inc.
Cartera Commerce Inc.
NA
Operates branded websites for airline and financial services partners that allow users to earn rewards by shopping on online stores
1/26/2017
Millstein & Co. LLC
MuniServices And Broussard Partners & Associates, Inc. And PRA Government Services And RamWare
$92
Provides services related to revenue enhancement, technology, and consulting for municipal and other government clients in the U.S.
1/26/2017
Reimagine Holdings Group
MarketSight LLC
NA
Develops web-based applications for market researchers to analyze and present data
1/25/2017
Accenture plc
solid-serVision.com GmbH
NA
German-based provider of consulting and implementation services focused on ServiceNow
1/24/2017
MPF Research Inc.
Axiometrics Inc.
$75
Provides surveys and market research on 500+ apartment markets and submarkets, along with 680 colleges and universities nationwide
1/24/2017
Solera Holdings Inc.
Digidentity B.V.
NA
Netherlands-based provider of identity management solutions for safe communication between individuals, organizations, and the government
1/23/2017
The Stagwell Group; Stagwell Media LLC
Nielsen Holdings plc, Certain Custom Research Assets
NA
Public opinion research firm that focuses on brand management, corporate reputation, CPG, public opinion, and consumer experience
1/23/2017
Viant Technology Inc.
Adelphic, Inc.
NA
Develops a mobile and cross-channel programmatic advertising platform that connects brands with audiences
1/23/2017
AIR Worldwide Corporation
Arium Limited
NA
Provides an innovative approach to modeling casualty catastrophic risk for organizations and their supply chain
1/20/2017
Market Track, LLC
AC Nielsen Company Of Canada, Ad Intelligence Service
NA
Provides actionable data to assist clients with campaign optimization, competitive intelligence, and cross-media strategy in Canada
1/20/2017
The NPD Group, Inc.
Nielsen Holdings plc, U.S. Market Information and Research Services for Book Industry Unit
NA
Includes U.S.-based BookScan, PubTrack Digital, PubTrack Higher Education, PubTrack Christian, Books & Consumers, PubEasy, and PubNet
1/20/2017
Sageview Capital LP (Investment)
National Arbitration And Mediation Inc.
NA
Leading provider of alternative dispute resolution (ADR) services through its panel of arbitrators and mediators
1/19/2017
Accenture plc
Seabury Group LLC, Corporate Advisory and Aviation Consulting Businesses
NA
Provides corporate advisory and consulting services to the aviation industry
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 2/7/17.
Target Description Provides a SaaS-based marketing analytics platform for the restaurant industry Provides communications, engineering, and IT solutions for Intelligence, defense, and federal civilian customers
13
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select M&A Transactions (2017 YTD) – continued ($MM) Announced Date
Acquirer
Target
Enterprise Value (EV)
Target Description
1/19/2017
IDG Capital Partners; China Oceanwide Holdings Group Co.,Ltd
International Data Group, Inc.
NA
Provides technology media, data, and marketing services to customers worldwide
1/18/2017
Augeo Affinity Marketing Inc.
Edo Interactive Inc.
NA
Provides digital and mobile advertising solutions that leverage payment networks to connect brands with consumers
1/18/2017
BV Investment Partners (Investment)
C-4 Analytics, LLC
NA
Provides tech-enabled digital marketing services
1/17/2017
Automatic Data Processing, Inc.
The Marcus Buckingham Company, Inc
NA
Provides leadership development solutions, including tools, research, coaching, and training programs
1/17/2017
Bain Capital Private Equity, LP; Yonghui Superstores Co., Ltd.
Daymon Worldwide, Inc.
$413
1/13/2017
Carrick Capital Partners, LLC (Investment)
Perfect Sense Digital, LLC
NA
Operates as a Web design, development, and operations company with a focus on delivering digital experiences for its clients' customers
1/12/2017
MCG Health, LLC
Work-Loss Data Institute LLC
NA
Evidence-based guideline company that provides healthcare data and guidelines to the workers’ compensation industry
1/12/2017
Thompson Street Capital Partners
Software Technology, Inc.
NA
Develops financial and practice management software for the legal industry
1/11/2017
Canada Pension Plan Investment Board (48% Stake)
GlobalLogic Inc.
NA
Provides full-lifecycle software development services to customers worldwide
1/10/2017
The Dun & Bradstreet Corporation
Avention, Inc.
$150
1/9/2017
Accenture plc
Altitude Inc.
NA
Offers product design, consulting, and innovation services
1/9/2017
Huron Consulting Group Inc.
Pope Woodhead & Associates Ltd
NA
UK-based provider of consultancy services to clients in pharmaceutical, biotech, and medtech sectors
1/6/2017
Deluxe Corporation
First Manhattan Consulting Group LLC
$200
1/5/2017
Gartner, Inc.
CEB Inc.
$3,312
1/5/2017
Impact Sales, Inc.
Harlow-HRK Sales & Marketing, Inc.
NA
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 2/7/17.
Provides branding, merchandising, and marketing services for retailers
Monitors and analyzes business information for companies worldwide, fka OneSource Information Services
Data-driven, omni-channel marketing services company that develops and delivers direct marketing campaigns Provides best practice and talent management insights in the U.S., Europe, and internationally Provides sales, marketing, analytical, and retail support services to manufacturers in the grocery industry
14
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select M&A Transactions (2017 YTD) – continued ($MM) Announced Date
Acquirer
Target
Enterprise Value (EV)
1/5/2017
The Carlyle Group LP; Carlyle US Equity Opportunity Fund II, L.P; The Indian Hill Group
Claritas, LLC
NA
Provides marketers with a comprehensive view into consumer behavior patterns through proprietary segmentation analysis
1/4/2017
Perficient, Inc.
R.A.S. Associates, Inc.
NA
Operates as a strategy and management consulting company
1/4/2017
Solera Holdings Inc.
Autodata Publishing Group Limited
$424
UK-based producer and provider of automotive technical information for the automotive aftermarket worldwide
1/4/2017
Financial Times Group Ltd.
GIS Planning, Inc.
NA
Provides subscription-based, proprietary U.S. national site selection data and intelligence for economic developers
1/3/2017
Macaulay-Brown, Inc.
Enlighten IT Consulting Inc.
NA
Provides big data infrastructure, secure cloud engineering, and analytic solutions for federal, state, and local clients
1/3/2017
Platinum Equity, LLC
Cox Target Media, Inc.
NA
Provides integrated marketing solutions including digital, social, and direct mail for agencies, retailers, brands, and shopper marketers
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 2/7/17.
Target Description
15
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select Marketing & Information Services M&A Transactions (2016) ($MM) EV / EBITDA Announced Date
Acquirer
Target
EV / Revenue
Enterprise Value (EV)
LTM
NTM
LTM
NTM
12/20/2016
$560
NA
NA
NA
NA
Operator of entertainment data and technology company.
12/14/2016
$2,871
6.8x
5.0x
2.5x
2.3x
Provider of real-time information and analysis services
12/8/2016
$2,029
39.5x
8.3x
1.3x
1.3x
Provider of market research and related services
11/21/2016
NA
NA
NA
NA
NA
Provider of business and financial information on public and private companies globally
NA
NA
NA
NA
Provider of an online marketplace for people-based data
$140 (1)
11/17/2016
Target Description
11/17/2016
NA
NA
NA
NA
NA
Provider of technology-enabled marketing services
11/17/2016
NA
NA
NA
NA
NA
Provider of social shopper marketing services
11/17/2016
$90
6.5x
5.9x
0.7x
0.8x
Provider of marketing insights and communications services
11/16/2016
$130
NA
NA
NA
NA
Provider of credit card comparison services
11/14/2016
NA
NA
NA
NA
NA
Provider of geographic information products and services
10/25/2016
NA
NA
NA
NA
NA
Provider of marketing research services
10/14/2016
$225
NA
NA
7.2x
NA
Provider of data, research and analysis on private and public companies
10/13/2016
NA
NA
NA
NA
NA
Provider of digital media and online advertising services
10/4/2016
$250
NA
NA
NA
NA
Provider of e-commerce media services
9/26/2016
$931
10.2x
9.0x
2.1x
2.1x
Provider of business management information services
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 12/31/16. 1) Combined Enterprise Value (EV) for both Arbor Technologies, Inc. and Circulate, Inc.
16
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select Marketing & Information Services M&A Transactions (2016) – continued ($MM) EV / EBITDA Announced Date
Acquirer
Target
EV / Revenue
Enterprise Value (EV)
LTM
NTM
LTM
NTM
9/15/2016
$1,558
11.0x
NA
4.2x
NA
Publisher of trade magazines and industry-specific web sites
9/6/2016
NA
NA
NA
NA
NA
Provider of governance, risk, and compliance solutions
8/9/2016
$2,382
22.7x
15.9x
6.9x
6.2x
Provider of strategic advisory services for healthcare organizations
8/8/2016
$1,500
NA
NA
NA
NA
Provider of performance marketing services
7/11/2016
$3,550
11.0x
NA
3.5x
NA
Provider of intellectual property and scientific information services
6/27/2016
$157
NM
8.8x
0.4x
0.5x
Provider of online advertising services
6/10/2016
$260
19.3x
NA
5.7x
NA
Provider of data and research related to digital marketing, media, and commerce
6/9/2016
NA
NA
NA
NA
NA
Provider of sales and marketing services for the insurance sector
6/7/2016
NA
NA
NA
NA
NA
Provider of information, news and data for the travel and hospitality industries
5/23/2016
$175
NA
NA
NA
NA
Provider of market research services
5/23/2016
$1,447
NA
NA
NA
NA
Publisher of market reports
5/5/2016
$107
7.3x
NA
1.5x
NA
Provider of online review and comparison services
5/3/2016
$13,171
17.7x
13.9x
4.3x
4.2x
Provider of information and technology services to the global healthcare industry
4/25/2016
$820
NA
NA
NA
NA
Provider of risk assessment and decision analytics services to the global healthcare industry
4/18/2016
$360
10.3x
NA
NA
NA
Provider of identity fraud services
Intellectual Property & Science Business
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 12/31/16.
Target Description
17
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select Marketing & Information Services M&A Transactions (2016) – continued ($MM) EV / EBITDA Announced Date
Acquirer
Target
EV / Revenue
Enterprise Value (EV)
LTM
NTM
LTM
NTM
4/15/2016
$1,100
NA
NA
3.1x
NA
Provider of marketing information services
4/4/2016
NA
NA
NA
NA
NA
Provider of web integration services in Japan
3/21/2016
$6,139
16.1x
11.6x
5.5x
5.1x
Provider of financial information services
3/7/2016
$207
NA
NA
1.7x
NA
Provider of customer acquisition services
2/18/2016
$3,579
35.0x
NA
5.9x
NA
Operator of a healthcare analytics company
2/11/2016
$418
NM
NA
2.0x
NA
Provider of online advertising services
1/28/2016
NA
NA
NA
NA
NA
Operator of a digital marketing agency
1/11/2016
$650
NA
17.0x
NA
NA
Provider of petroleum pricing services
16.4x 11.0x
10.6x 9.0x
3.4x 3.1x
2.8x 2.2x
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 12/31/16.
Target Description
18
RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select Professional, IT & BPO Services M&A Transactions (2016) ($MM) EV / EBITDA Announced Date
Acquirer
Target
EV / Revenue
Enterprise Value (EV)
LTM
NTM
LTM
NTM
12/19/2016
NA
NA
NA
NA
NA
Provider of recruitment services
12/12/2016
$435
11.2x
7.7x
0.8x
0.8x
Provider of language translation and testing services
12/6/2016
NA
NA
NA
NA
NA
Provider of information security and compliance management services to enterprise clients
12/1/2016
NA
NA
NA
NA
NA
Provider of data-driven benchmarking, outsourcing consulting and network advisory services
11/16/2016
NA
NA
NA
NA
NA
Provider of debt collection and business process outsourcing services
11/14/2016
$4,413
16.5x
NA
7.1x
NA
Provider of credit information services
11/6/2016
$2,500
NA
NA
NA
NA
Provider of business and financial advisory services
10/31/2016
$6,020
15.0x
11.6x
1.4x
1.2x
Provider of healthcare administrative services
10/21/2016
$410
NA
NA
NA
NA
Provider of information management and data recovery services
10/20/2016
$500
NA
NA
2.6x
NA
Provider of enterprise-grade cloud services
10/17/2016
NA
NA
NA
NA
NA
Provider of information technology services
10/11/2016
NA
NA
NA
NA
NA
Provider of risk management services
10/6/2016
NA
NA
NA
NA
NA
Provider of business process outsourcing services
10/5/2016
NA
NA
NA
NA
NA
Provider of outsourcing and consulting services
9/29/2016
NA
NA
NA
NA
NA
Provider of consulting and advisory services
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 12/31/16.
Target Description
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RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select Professional, IT & BPO Services M&A Transactions (2016) – continued ($MM) EV / EBITDA Announced Date
Acquirer
Target
EV / Revenue
Enterprise Value (EV)
LTM
NTM
LTM
NTM
9/26/2016
$931
10.2x
9.0x
2.1x
2.1x
Provider of business management information services
9/22/2016
$166
NA
NA
1.8x
NA
Provider of global strategy consulting services
9/20/2016
NA
NA
NA
NA
NA
Provider of professional staffing services
8/22/2016
$1,522
10.4x
NA
3.9x
NA
Provider of language translation services
8/10/2016
NA
NA
NA
NA
NA
Provider of business process outsourcing services
7/27/2016
$1,009
11.6x
8.8x
1.9x
1.9x
Provider of technology-based legal services
7/11/2016
$420
NA
NA
NA
NA
Provider of business process outsourcing services
7/6/2016
$132
NA
NA
0.8x
NA
Provider of business process outsourcing services
6/1/2016
NA
NA
NA
NA
NA
Provider of business process outsourcing services
5/24/2016
$17,000
NA
NA
NA
NA
Provider of IT consulting services
4/4/2016
$275
NA
NA
NA
NA
Operator of a social network for executives
4/3/2016
$1,040
7.7x
7.2x
1.1x
1.1x
Provider of global IT and business process outsourcing services
3/30/2016
NA
NA
NA
NA
NA
Provider of cloud-enabled consulting and implementation services
3/28/2016
$3,055
NA
NA
1.1x
NA
Provider of information technology and business services
2/11/2016
NA
NA
NA
NA
NA
Provider of healthcare staffing services
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 12/31/16.
Target Description
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RECENT BUSINESS & TECH-ENABLED SERVICES ACQUISITIONS Select Professional, IT & BPO Services M&A Transactions (2016) – continued ($MM) EV / EBITDA Announced Date
Acquirer
Target
EV / Revenue
Enterprise Value (EV)
LTM
NTM
LTM
NTM
2/8/2016
$742
8.9x
6.1x
0.8x
0.8x
Provider of information-technology services
2/1/2016
NA
NA
NA
NA
NA
Provider of court reporting services
1/4/2016
NA
NA
NA
NA
NA
Provider of legal and technology consulting services
Mean Median
Notes: Source: Capital IQ and Wall Street Estimates. Market Data as of 12/31/16.
11.4x 10.8x
8.4x 8.3x
2.1x 1.6x
Target Description
1.3x 1.2x
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GCA OVERVIEW Deep Business & Tech-Enabled Services Sector Expertise
IT Services Business
Acquired
Received Minority Investment from
Acquired by
Convertible Note Offering
Acquired by
Equity Investment
Acquired by
Acquired
Acquired
We Advised the Buyer
Financial Advisor
We Advised the Seller
Financial Advisor
We Advised the Seller
Financial Advisor
We Advised the Seller
We Advised the Buyer
We Advised the Buyer
Acquired by
Preferred Stock
Acquired
Acquired
Acquired by
Acquired by
Preferred Stock
Acquired by
Acquired
Consortium Led by
We Advised the Seller
Financial Advisor
We Advised the Buyer
Hotel, Rental & Event Production Division
We Advised the Buyer
We Advised the Seller
We Advised the Seller
Financial Advisor
We Advised the Buyer
We Advised the Buyer
Acquired by
Acquired by
Acquired by
Acquired by
Acquired
Acquired by
Acquired by
Acquired
We Advised the Seller
We Advised the Buyer
We Advised the Seller
We Advised the Seller
We Advised the Seller
We Advised the Seller
We Advised the Seller
We Advised the Buyer
We Advised the Seller
Acquired by
Acquired by
Acquired by
Acquired by
Acquired by
Preferred Stock
Acquired
Acquired by
Acquired by
Financial Advisor
We Advised the Seller
We Advised the Seller
We Advised the Seller
We Advised the Seller
Financial Advisor
We Advised the Buyer
We Advised the Seller
We Advised the Seller
Acquired by
Notes: The above transactions represents a compilation of past and current deals that GCA entities have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction.
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GCA OVERVIEW Business & Tech-Enabled Services Team
New York th
640 Fifth Avenue, 10 Fl. New York, NY 10019 United States Phone: (212) 999-7090
San Francisco
Tokyo
London
Frankfurt
One Maritime Plaza, 25th Fl. San Francisco, CA 94111 United States Phone: (415) 318-3600
11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230 Japan Phone: +81 (3) 6212-7100
1 Southampton St. London WC2R0LR United Kingdom Phone:+44 20 7484 4040
Thurn-und-Taxis-Platz 6 60313 Frankfurt Germany Phone: +49 69 204 34 6410
Milan Piazza San Fedele 4 20121 Milano Italy Phone: +39 02 76 01 73 40
Derek Bell Managing Director
Sascha Pfeiffer* Managing Director
Stephen Georgiadis* Managing Director
Akikazu Ida* Managing Director
Phone: (212) 999-7089 Mobile: (914) 953-0689
[email protected]
Phone: +49 69 20 434 6415 Mobile: +49 177 741 5643
[email protected]
Phone: +44 207 484 4040 Mobile: +44 7770 827335
[email protected]
Phone: +81 (3) 6212-7241 Mobile: +81 (80) 9027-3023
[email protected]
Alessandro Soprano* Managing Director
Adrian Reed* Managing Director
Raiko Stelten* Director
Malte Abrams* Associate
Phone: +39 02 7601 7340 Mobile: +39 348 231 6056
[email protected]
Phone: +44 845 505 4343 Mobile: +44 7887 626800
[email protected]
Phone: +49 69 20 434 6418 Mobile: +49 171 335 0879
[email protected]
Phone: +49 69 20 434 6425 Mobile: +49 151 6483 5612
[email protected]
Notes: *Sascha Pfeiffer, Stephen Georgiadis, Alessandro Soprano, and Adrian Reed are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Akikazu Ida is a Managing Director at GCA Corporation. *Raiko Stelten is a Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Malte Abrams is an Associate at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation.
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