Software Sector Summary Report

Software C O M P Sector A N Y PSummary RESENTATION Week of August 7, 2017

1

DEAL DASHBOARD Software $30.7 Billion

379

$24.1 Billion

59

Financing Volume YTD (1)(2)

Financing Transactions YTD (1)(2)

M&A Volume YTD (3)

M&A Transactions YTD (3)

Select Financing Transactions Company

Quarterly Financing Volume (1)(2)

Amount ($MM)

Quarterly M&A Volume (3)

16%

$Bn

Target

$14

$103 $9

$6

$101

$6

$5

$4

$6

$24

$15

$16

$15

$6

(

$12 $5

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

Quarterly Financing Deal Count (1)(2)

Quarterly M&A Deal Count (3)

16%

$46

$1,125

)

(

$834

)

2%

$614

156 160 118

$35 86

103

111

127

123 94

24

29

29

13

$25 $22

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17 Q2'17

24

IGV

29

25

$531 21

14

$344 $270

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17

Last 12 Months Software Price Performance vs. S&P 500 (5)

M&A EV/ NTM Rev. Over Time (6)

SPX

30%

27%

25%

6

4

15%

13%

All Buyers

`

2

5%

1

PE Buyers

5.3x 3.9x

4.5x

4.3x

4.2x

3.9x

4.0x

3.6x

3.1x

4.6x

4.9x

4.1x

3.7x

2.9x

2.9x

2.7x

3

10%

Strategic Buyers

4.7x

5

20%

0% Aug-16 (5%)

$1,370

)

(

$67

EV ($MM) $3,903

$41

$75

35%

Acquirer

$50 $12

$10

Select M&A Transactions (4)

(23)%

$Bn

2.3x 2.2x 2.5x

2.2x

0 Sep-16

Oct-16

Nov-16

Dec-16

Jan-17

Feb-17

Mar-17

Apr-17

May-17

Jun-17

Jul-17

Aug-17

2011

2012

2013

Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 08/04/2017. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Software M&A transactions reflect select transactions in CY2017. 5) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM.

2014

2015

2016

2017

2

GCA OVERVIEW The GCA Software Team

US Team Daniel Avrutsky

Jimmy Orozco

Josh Wepman

Paul DiNardo

Steve Fletcher

Managing Director

Managing Director

Managing Director

[email protected]

[email protected]

Managing Director Software & Digital Media

Managing Director Head of Software

[email protected]

[email protected]

[email protected]

Gautam Garg

Glen Kruger

Vice President

Director

Mike Janovec Vice President

[email protected]

[email protected]

[email protected]

Alex Vitale

Arthur Kirsch

Chris Gough

Derek Bell

Managing Director Auto Tech

Managing Director Healthcare IT

Managing Director Real Estate Tech

Managing Director Business Services

[email protected]

[email protected]

[email protected]

[email protected]

John Lambros

JT Herman

Peter Bang

Sean Minnihan

Managing Director Head of Digital Media

Managing Director Industrial Technology

[email protected]

[email protected]

Managing Director Financial Services Financial Software

Managing Director FinTech Financial Software

[email protected]

[email protected]

Executive Leadership

Select Europe Team

Select Asia Team

Todd Carter

*Adrian Reed

*Phil Adams

*Raiko Stelten

**Akikazu Ida

**Ryuichi Kanemaki

Co-President & CEO

Managing Director

CEO of GCA Altium

Director

Managing Director

[email protected]

[email protected]

[email protected]

[email protected]

Co-Head of Asian Technology & Media

[email protected]

[email protected]

Clark Callander

*Sascha Pfeiffer

*Stephen Georgiadis

*Tobias Schultheiss

Sameer Jindal

**Tomohiko Kubota

Managing Director Head of Investment Banking

Co-Head of European Technology & Media

Managing Director

Managing Director

[email protected]

[email protected]

Managing Director Head of Indian Operations

Managing Director CEO of AMPLIA

[email protected]

[email protected]

[email protected]

[email protected]

*Adrian Reed, Phil Adams, Sascha Pfeiffer, Stephen Georgiadis and Tobias Schultheiss are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Raiko Stelten is a Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. **Akikazu Ida, Ryuichi Kanemaki and Tomohiko Kubota are Managing Directors at GCA Corporation.

3

RECENT STOCK PERFORMANCE Index Performance Last 12 Months

Last 3 Years 75%

30%

60%

21% 45%

12%

30% 15%

3% Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 (6%)

(15%)

Jul-17

Aug-17

0% Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 (15%) (30%)

Sector Platform Security Infrastructure BI & Analytics Vertical SaaS / On Demand

3 Months

1 Year

3 Years

2.4% 6.9% (0.6%) (0.6%) (1.7%) 5.4%

17.7% 17.8% 13.4% 6.9% 15.1% 21.1%

44.4% 33.7% 17.4% 10.5% 49.9% 64.1%

Notes: Source: Capital IQ. Market Data as of 08/04/2017. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, SAP. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, CLDR, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

4

TRADING COMPARABLES Valuation and Operational Metrics EV / 2017E Revenue 7.0x

EV / 2017E EBITDA 40.0x

6.1x

6.0x

Median: 4.7x

5.1x

5.0x

5.0x

37.4x

35.0x 28.1x

30.0x

4.5x 4.0x

4.0x

4.0x

25.4x

Median: 26.3x 25.3x

25.0x 20.0x

3.0x

12.1x

15.0x

2.0x

10.0x

1.0x

5.0x 0.0x

0.0x SaaS

Vertical

Infrastructure

Platform

BI & Analytics

SaaS

Security

2017E / 2016A Rev. Growth 40.0%

35.0%

Median: 16.4% 25.0%

25.0% 20.0%

Security

24.7%

35.0%

Platform

Median: 22.0%

25.1%

25.0% 16.1%

Vertical

36.4%

30.0%

16.7%

BI & Analytics Infrastructure

2017E EBITDA Margin

40.0% 30.0%

27.3x

20.7%

20.0%

14.4%

15.0%

23.2%

11.8%

15.0%

10.0%

10.0%

5.0%

5.0%

0.0%

16.9%

14.0%

0.0% SaaS

BI & Analytics Infrastructure

Vertical

Security

Platform

Platform

Infrastructure

Vertical

Notes: Source: Capital IQ. Market Data as of 08/04/2017. Figures represent mean values of respective comp groups. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, SAP. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, CLDR, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD.

Security

SaaS

BI & Analytics

5

PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock

Trading Statistics

Price

Equity

Net

Enterprise

8/4/2017

Value

Debt

Value

Alphabet Inc.

$945.79

$655,318

($90,758)

Microsoft Corporation

$72.68

559,799

(40,403)

Oracle Corporation

$49.96

206,669

International Business Machines Corporation

$145.16

SAP SE

$107.28

EV / Revenue

Operating Metrics

EV / EBITDA

Price / EPS

CY Rev. Growth

EBITDA Margin

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

16A/15A

17E/16A

18E/17E

CY 16A

CY 17E

CY 18E

$564,560

6.3x

5.2x

4.4x

18.9x

13.1x

11.0x

33.9x

25.1x

23.0x

20.4%

20.1%

17.2%

33.1%

39.8%

40.2%

519,396

6.1

5.2

4.8

18.7

13.2

12.3

34.2

21.7

21.6

(2.7%)

17.3%

7.2%

32.4%

39.0%

39.2%

(8,169)

198,500

5.3

5.1

4.9

13.6

11.2

10.5

23.8

17.4

16.1

(0.6%)

4.0%

4.0%

39.2%

45.6%

47.0%

135,280

33,379

168,659

2.1

2.2

2.2

9.1

9.1

9.0

11.7

10.6

10.5

(2.2%)

(2.5%)

(0.2%)

23.2%

23.8%

24.2%

128,619

1,897

130,516

5.6

4.7

4.4

20.5

13.8

12.9

33.4

22.0

20.0

3.1%

19.9%

6.5%

27.4%

33.8%

34.1%

Mean

5.1x

4.5x

4.1x

16.2x

12.1x

11.1x

27.4x

19.4x

18.2x

3.6%

11.8%

6.9%

31.0%

36.4%

37.0%

Median

5.6

5.1

4.4

18.7

13.1

11.0

33.4

21.7

20.0

(0.6%)

17.3%

6.5%

32.4%

39.0%

39.2%

Platform

Infastructure VMware, Inc.

$93.09

$38,019

($6,485)

$31,534

4.4x

4.1x

3.9x

17.0x

11.1x

10.8x

33.5x

18.9x

17.4x

6.7%

7.4%

5.8%

26.1%

37.4%

36.1%

ServiceNow, Inc.

$109.71

18,637

(552)

18,085

13.0

9.5

7.3

NM

43.1

29.4

NM

93.8

61.4

38.3%

37.2%

30.5%

NM

22.0%

24.7%

Red Hat, Inc.

$98.36

17,455

(887)

16,568

7.1

6.1

5.4

41.6

22.9

19.3

75.1

38.7

32.4

17.9%

16.7%

13.8%

17.1%

26.6%

27.8%

CA, Inc.

$31.99

13,476

(44)

13,432

3.3

3.2

3.2

10.5

8.8

8.3

17.0

13.4

12.7

(0.1%)

3.0%

2.5%

31.8%

36.8%

38.1%

Citrix Systems, Inc.

$78.16

11,842

41

11,883

3.5

4.2

4.1

11.6

12.5

11.8

22.9

16.9

15.5

4.4%

(17.5%)

4.0%

30.0%

33.6%

34.3%

Splunk Inc.

$59.75

8,268

(1,003)

7,264

7.6

6.1

4.8

NM

53.6

38.1

NM

NM

80.0

42.1%

26.3%

25.6%

NM

11.3%

12.7%

Atlassian Corporation Plc

$35.33

7,966

(550)

7,416

14.0

10.3

7.8

NM

39.6

29.0

NM

97.2

67.6

37.2%

35.6%

31.2%

NM

26.0%

27.0%

F5 Networks, Inc.

$119.78

7,612

(1,014)

6,597

3.3

3.1

3.0

10.8

7.9

7.4

21.6

14.4

13.3

3.9%

4.1%

5.0%

30.2%

39.5%

40.5%

Micro Focus International plc

$27.58

6,337

1,411

7,748

5.7

5.6

5.6

14.8

11.9

11.7

40.1

15.2

14.5

9.3%

2.1%

0.9%

38.7%

47.1%

47.5%

LogMeIn, Inc.

$112.70

5,942

(285)

5,657

16.8

5.6

4.8

NM

15.7

12.7

NM

27.8

23.2

23.7%

5.6%

15.6%

12.2%

35.6%

38.0%

Nutanix, Inc.

$21.42

3,246

(350)

2,895

4.8

3.3

2.4

NM

NM

NM

NM

NM

NM

83.4%

47.6%

33.4%

NM

NM

NM

Software Aktiengesellschaft

$42.20

3,121

(18)

3,103

3.4

2.9

2.9

11.4

9.5

9.0

21.7

14.3

13.7

(2.9%)

14.5%

2.8%

29.5%

30.9%

31.7%

NetScout Systems, Inc.

$34.00

3,044

(100)

2,944

2.6

2.6

2.4

15.4

11.3

8.6

NM

19.5

14.5

43.1%

1.5%

8.3%

17.0%

22.8%

27.4%

MuleSoft, Inc.

$21.75

2,804

(256)

2,549

13.6

9.1

6.8

NM

NM

NM

NM

NM

NM

70.3%

49.3%

34.5%

NM

NM

NM

Commvault Systems, Inc.

$60.40

2,749

(481)

2,268

3.6

3.3

3.0

NM

23.9

18.4

NM

54.5

42.7

8.6%

8.8%

9.9%

2.6%

13.7%

16.2%

Pure Storage, Inc.

$12.82

2,676

(536)

2,140

2.9

2.1

1.6

NM

NM

28.5

NM

NM

NM

65.3%

37.1%

30.5%

NM

0.4%

5.8%

New Relic, Inc.

$46.02

2,509

(227)

2,282

9.4

7.0

5.5

NM

NM

70.7

NM

NM

NM

49.6%

33.9%

27.3%

NM

0.8%

7.8%

Progress Software Corporation

$31.45

1,519

(118)

1,400

3.5

3.5

3.5

12.9

8.7

8.7

NM

17.9

18.0

7.4%

(2.6%)

0.9%

26.9%

40.9%

40.6%

Appian Corporation

$19.71

1,185

(78)

1,107

8.3

6.8

5.8

NM

NM

NM

NM

NM

NM

19.5%

22.7%

16.8%

NM

NM

NM

A10 Networks, Inc.

$6.80

481

(132)

349

1.5

1.5

1.4

NM

99.8

35.3

NM

NM

NM

15.6%

0.5%

8.9%

NM

1.5%

3.9%

Mean

6.6x

5.0x

4.3x

16.2x

25.4x

21.0x

33.1x

34.0x

30.5x

27.2%

16.7%

15.4%

23.8%

25.1%

27.1%

Median

4.6

4.2

4.0

12.9

12.5

12.7

22.9

18.9

17.7

18.7%

11.7%

11.8%

26.9%

26.6%

27.8%

Notes: Source: Capital IQ and Wall Street Estimates. Multiples 100 considered NM. Negative margins considered NM. Market Data as of 08/04/2017.

6


Trading Statistics

Price

Equity

Net

Enterprise

8/4/2017

Value

Debt

Value

Symantec Corporation

$29.17

$17,875

$3,888

Check Point Software Technologies Ltd.

$106.14

17,348

(1,599)

Palo Alto Networks, Inc.

$130.47

11,980

Splunk Inc.

$59.75

Trend Micro Incorporated

EV / Revenue

Operating Metrics

EV / EBITDA

Price / EPS

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

$21,763

5.8x

4.3x

4.0x

24.4x

9.7x

15,749

9.0

8.4

7.9

18.2

15.1

(854)

11,127

7.1

5.8

4.8

NM

8,268

(1,003)

7,264

7.6

6.1

4.8

$50.07

6,875

(1,113)

5,762

5.1

4.3

Fortinet, Inc.

$36.84

6,478

(1,207)

5,270

4.1

Proofpoint, Inc.

$86.28

3,833

(52)

3,781

FireEye, Inc.

$14.36

2,616

(110)

Qualys, Inc.

$46.25

1,735

Mimecast Limited

$27.93

Imperva, Inc.

CY Rev. Growth

EBITDA Margin

CY 16A

CY 17E

CY 18E

16A/15A

17E/16A

18E/17E

CY 16A

CY 17E

CY 18E

8.5x

NM

18.9x

14.4x

4.2%

32.5%

7.8%

23.6%

44.7%

47.6%

14.1

25.4

20.5

18.8

6.8%

7.5%

6.9%

49.7%

55.7%

55.9%

24.5

19.1

NM

45.5

35.3

36.3%

22.8%

21.2%

NM

23.6%

24.9%

NM

53.6

38.1

NM

NM

80.0

42.1%

26.3%

25.6%

NM

11.3%

12.7%

4.1

14.8

12.7

11.7

32.7

29.6

26.2

9.3%

17.6%

6.7%

34.5%

34.1%

34.8%

3.5

3.1

55.0

17.4

14.1

NM

38.7

32.2

26.4%

16.9%

14.9%

7.5%

20.3%

21.8%

10.1

7.5

5.8

NM

62.5

41.5

NM

NM

86.3

41.5%

34.8%

27.8%

NM

12.0%

14.1%

2,506

3.5

3.4

3.1

NM

31.4

28.5

NM

NM

NM

14.6%

3.9%

8.1%

NM

10.8%

11.0%

(279)

1,457

7.4

6.4

5.5

30.5

19.3

16.6

92.5

51.2

44.9

20.5%

15.0%

16.0%

24.2%

33.1%

33.2%

1,588

(98)

1,490

8.7

6.5

5.2

NM

84.1

53.1

NM

NM

NM

26.1%

33.8%

24.9%

NM

7.7%

9.8%

$43.90

1,484

(320)

1,165

4.4

3.6

3.1

NM

29.2

20.7

NM

54.5

47.0

12.9%

21.5%

18.1%

NM

12.4%

14.8%

CyberArk Software Ltd.

$40.68

1,413

(287)

1,126

5.2

4.4

3.7

26.5

19.9

15.5

52.2

37.8

29.9

34.7%

17.9%

20.2%

19.6%

22.2%

23.6%

Barracuda Networks, Inc.

$22.71

1,203

(203)

1,000

2.9

2.7

2.5

28.7

15.0

12.0

NM

31.0

26.8

12.5%

7.0%

7.7%

10.0%

17.9%

20.8%

SecureWorks Corp.

$10.70

867

(92)

776

1.8

1.7

1.5

NM

NM

NM

NM

NM

NM

26.5%

7.9%

10.3%

NM

NM

0.3%

F-Secure Oyj

$4.59

716

(103)

613

3.7

3.0

2.8

25.7

31.2

18.5

43.4

61.7

34.6

4.2%

20.8%

10.1%

14.3%

9.7%

14.9%

Rapid7, Inc.

$15.06

654

(84)

569

3.6

2.9

2.4

NM

NM

NM

NM

NM

NM

42.4%

24.5%

21.0%

NM

NM

NM

VASCO Data Security International, Inc.

$13.20

527

(156)

370

1.9

2.0

1.8

22.9

23.5

17.1

49.6

42.6

33.8

(20.4%)

(2.7%)

9.1%

8.4%

8.4%

10.6%

MobileIron, Inc.

$4.40

414

(89)

325

2.0

1.8

1.6

NM

NM

NM

NM

NM

NM

9.8%

9.8%

11.1%

NM

NM

NM

Zix Corporation

$5.31

289

(30)

259

4.3

3.9

3.5

21.8

14.1

12.1

49.0

19.0

16.1

9.9%

10.5%

10.7%

19.8%

27.8%

29.0%

Absolute Software Corporation

$6.42

253

(35)

219

2.5

2.3

2.1

19.6

26.6

18.0

NM

NM

36.3

(4.2%)

8.8%

10.5%

12.6%

8.5%

11.4%

Guidance Software, Inc.

$7.08

216

(13)

204

1.8

2.0

1.7

NM

16.2

12.9

NM

22.7

18.2

3.3%

(6.4%)

16.7%

NM

12.2%

13.1%

iPass Inc.

$0.67

44

(10)

34

0.5

0.6

0.5

NM

NM

59.6

NM

NM

NM

1.1%

(13.8%)

24.7%

NM

NM

0.8%

Mean

4.7x

4.0x

3.4x

26.2x

28.1x

22.7x

49.3x

36.4x

36.3x

16.4%

14.4%

15.0%

20.4%

20.7%

20.3%

Median

4.2

3.6

3.1

24.4

21.7

17.1

49.0

37.8

33.0

12.7%

16.0%

13.0%

19.6%

15.2%

14.9%

Security


7


Trading Statistics

Price

Equity

Net

Enterprise

8/4/2017

Value

Debt

Value

Salesforce.com, inc.

$90.45

$64,341

($684)

Workday, Inc.

$101.17

20,942

(1,574)

ServiceNow, Inc.

$109.71

18,637

Shopify Inc.

$96.28

Veeva Systems Inc.

EV / Revenue

Operating Metrics

EV / EBITDA

Price / EPS

CY Rev. Growth

EBITDA Margin

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

16A/15A

17E/16A

18E/17E

CY 16A

CY 17E

CY 18E

$63,657

7.6x

6.2x

5.2x

NM

29.1x

23.5x

NM

69.5x

53.9x

25.9%

22.6%

19.5%

6.0%

21.3%

22.0%

19,368

12.3

9.4

7.5

NM

65.0

46.0

NM

NM

NM

35.0%

30.8%

25.1%

NM

14.5%

16.4%

(552)

18,085

13.0

9.5

7.3

NM

43.1

29.4

NM

93.8

61.4

38.3%

37.2%

30.5%

NM

22.0%

24.7%

9,489

(932)

8,556

22.0

13.2

9.2

NM

NM

NM

NM

NM

NM

89.7%

67.0%

42.8%

NM

1.8%

4.7%

$62.12

8,681

(664)

8,018

14.7

12.0

10.0

65.8

37.7

31.2

NM

74.9

62.2

32.9%

23.1%

19.6%

22.4%

31.8%

32.1%

LogMeIn, Inc.

$112.70

5,942

(285)

5,657

16.8

5.6

4.8

NM

15.7

12.7

NM

27.8

23.2

23.7%

5.6%

15.6%

12.2%

35.6%

38.0%

The Ultimate Software Group, Inc.

$196.24

5,832

(101)

5,731

7.3

6.1

5.1

84.8

27.1

21.4

NM

55.5

44.7

26.4%

19.8%

20.0%

8.7%

22.6%

23.9%

Aspen Technology, Inc.

$57.79

4,305

38

4,343

9.2

9.0

8.5

19.7

18.7

17.3

33.5

29.9

28.2

1.7%

2.1%

5.3%

46.7%

48.1%

49.5%

Paycom Software, Inc.

$69.48

4,139

(33)

4,106

12.5

9.5

7.6

60.4

33.1

26.0

94.2

59.7

48.4

46.5%

31.1%

25.0%

20.7%

28.7%

29.3%

Blackbaud, Inc.

$87.66

4,117

370

4,487

6.1

5.7

5.2

36.0

23.4

21.4

99.6

41.1

36.8

14.6%

7.7%

8.8%

17.1%

24.3%

24.5%

j2 Global, Inc.

$77.71

3,745

641

4,386

5.0

3.8

3.6

11.9

9.2

8.2

24.8

13.4

12.1

21.3%

30.6%

7.6%

42.3%

41.9%

43.6%

RealPage, Inc.

$40.10

3,314

71

3,386

6.0

5.1

4.4

41.6

20.8

16.8

NM

43.3

34.7

21.3%

17.0%

15.2%

14.3%

24.5%

26.4%

Zendesk, Inc.

$29.19

2,889

(240)

2,648

8.5

6.3

4.8

NM

NM

95.3

NM

NM

NM

49.4%

35.5%

29.7%

NM

3.1%

5.1%

MuleSoft, Inc.

$21.75

2,804

(256)

2,549

13.6

9.1

6.8

NM

NM

NM

NM

NM

NM

70.3%

49.3%

34.5%

NM

NM

NM

HubSpot, Inc.

$71.85

2,660

(203)

2,458

9.1

6.8

5.4

NM

NM

80.4

NM

NM

NM

48.9%

34.4%

25.8%

NM

4.5%

6.7%

RingCentral, Inc.

$35.05

2,635

(167)

2,468

6.5

5.0

4.1

NM

79.5

53.9

NM

NM

NM

28.2%

29.7%

23.7%

NM

6.3%

7.5%

Box, Inc.

$18.69

2,526

(103)

2,423

6.1

4.8

3.9

NM

NM

NM

NM

NM

NM

31.7%

26.8%

23.0%

NM

NM

3.1%

New Relic, Inc.

$46.02

2,509

(227)

2,282

9.4

7.0

5.5

NM

NM

70.7

NM

NM

NM

49.6%

33.9%

27.3%

NM

0.8%

7.8%

2U, Inc.

$49.54

2,355

(22)

2,333

11.3

8.6

6.5

NM

NM

NM

NM

NM

NM

37.1%

31.9%

31.3%

NM

3.8%

5.3%

Paylocity Holding Corporation

$43.98

2,265

(101)

2,164

8.2

6.6

5.3

NM

37.9

28.9

NM

67.5

52.1

40.8%

25.0%

23.9%

2.7%

17.3%

18.3%

Cloudera, Inc.

$17.27

2,265

(222)

2,043

7.8

5.9

4.7

NM

NM

NM

NM

NM

NM

57.2%

33.3%

26.0%

NM

NM

NM

Okta, Inc.

$23.01

2,193

(224)

1,968

12.3

8.4

6.1

NM

NM

NM

NM

NM

NM

86.6%

47.0%

36.2%

NM

NM

NM

Cornerstone OnDemand, Inc.

$35.32

2,033

(67)

1,967

4.6

4.1

3.5

NM

30.6

21.6

NM

89.9

47.8

24.6%

13.7%

15.6%

NM

13.4%

16.3%

Qualys, Inc.

$46.25

1,735

(279)

1,457

7.4

6.4

5.5

30.5

19.3

16.6

92.5

51.2

44.9

20.5%

15.0%

16.0%

24.2%

33.1%

33.2%

Callidus Software Inc.

$25.00

1,691

(172)

1,519

7.3

6.2

5.2

NM

49.5

34.9

NM

76.9

54.8

19.4%

19.4%

19.2%

NM

12.4%

14.8%

Coupa Software Incorporated

$30.78

1,631

(238)

1,393

10.4

8.0

6.4

NM

NM

NM

NM

NM

NM

59.9%

30.2%

24.7%

NM

NM

NM

Mimecast Limited

$27.93

1,588

(98)

1,490

8.7

6.5

5.2

NM

84.1

53.1

NM

NM

NM

26.1%

33.8%

24.9%

NM

7.7%

9.8%

Alteryx, Inc.

$22.98

1,350

(153)

1,197

14.0

9.5

7.0

NM

NM

NM

NM

NM

NM

59.4%

46.3%

35.9%

NM

NM

NM

Appian Corporation

$19.71

1,185

(78)

1,107

8.3

6.8

5.8

NM

NM

NM

NM

NM

NM

19.5%

22.7%

16.8%

NM

NM

NM

Five9, Inc.

$21.12

1,164

(11)

1,153

7.1

5.9

5.0

NM

91.9

59.1

NM

NM

NM

25.8%

20.2%

17.6%

1.1%

6.4%

8.5%

Yext, Inc.

$12.79

1,152

(134)

1,018

8.2

6.0

4.5

NM

NM

NM

NM

NM

NM

38.5%

36.2%

32.9%

NM

NM

NM

SaaS


8


Trading Statistics

Price

Equity

Net

Enterprise

8/4/2017

Value

Debt

Value

EV / Revenue

Operating Metrics

EV / EBITDA

Price / EPS

CY Rev. Growth

EBITDA Margin

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

16A/15A

17E/16A

18E/17E

CY 16A

CY 17E

CY 18E

15.6%

SaaS (Cont'd) SPS Commerce, Inc.

$57.92

$997

($159)

$839

4.3x

3.8x

3.3x

44.5x

26.1x

21.3x

NM

66.2x

55.0x

21.9%

14.3%

14.5%

9.8%

14.5%

Instructure, Inc.

$29.85

877

(26)

851

7.7

5.5

4.2

NM

NM

NM

NM

NM

NM

51.5%

38.7%

31.0%

NM

NM

NM

Benefitfocus, Inc.

$27.50

857

53

910

3.9

3.5

3.1

NM

57.1

32.0

NM

NM

NM

26.0%

10.0%

16.0%

NM

6.2%

9.6%

Workiva Inc.

$20.00

837

(53)

784

4.4

3.8

3.3

NM

NM

NM

NM

NM

NM

23.0%

15.0%

14.4%

NM

NM

NM

LivePerson, Inc.

$13.05

769

(54)

714

3.2

3.3

3.1

79.9

34.9

28.3

NM

NM

92.1

(6.8%)

NM

7.0%

4.0%

9.5%

11.0%

Apptio, Inc.

$16.73

668

(124)

544

3.4

3.0

2.6

NM

NM

NM

NM

NM

NM

24.2%

13.6%

15.3%

NM

NM

2.2%

Carbonite, Inc.

$21.15

581

(16)

565

2.7

2.3

2.1

40.0

12.3

9.6

NM

27.8

21.0

51.5%

18.1%

9.6%

6.8%

18.8%

22.0%

Castlight Health, Inc.

$4.30

566

(90)

476

4.7

3.6

2.8

NM

NM

NM

NM

NM

NM

35.0%

30.7%

27.5%

NM

NM

NM

Bazaarvoice, Inc.

$4.55

384

(59)

324

1.6

1.6

1.5

NM

18.0

12.5

NM

NM

35.7

2.2%

0.4%

5.3%

NM

8.9%

12.2%

ChannelAdvisor Corporation

$10.09

267

(57)

210

1.9

1.7

1.5

NM

32.7

21.9

NM

NM

NM

12.5%

9.6%

11.4%

NM

5.2%

6.9%

Park City Group, Inc.

$13.30

258

(10)

248

15.1

11.2

8.3

71.1

NA

NA

NM

60.5

32.8

21.6%

35.6%

34.9%

21.3%

NA

NA

Brightcove Inc.

$6.85

235

(28)

207

1.4

1.4

1.3

NM

NM

26.4

NM

NM

NM

11.6%

1.9%

5.7%

NM

NM

4.9%

Amber Road, Inc.

$8.52

231

12

243

3.3

3.0

2.7

NM

NM

85.0

NM

NM

NM

9.0%

9.5%

12.2%

NM

NM

3.2%

Marin Software Incorporated

$1.15

45

(30)

15

0.2

NA

NA

NM

NA

NA

NM

NA

NA

(8.0%)

NA

NA

NM

NA

NA

Mean

8.0x

6.1x

5.0x

48.8x

37.4x

34.7x

68.9x

55.8x

44.3x

32.1%

25.0%

21.0%

16.3%

16.9%

16.9%

Median

7.6

6.1

5.1

43.0

31.6

26.4

92.5

59.7

44.9

26.1%

25.0%

19.8%

13.3%

14.5%

14.8%


9


Trading Statistics

Price

Equity

Net

Enterprise

8/4/2017

Value

Debt

Value

EV / Revenue

Operating Metrics

EV / EBITDA

Price / EPS

CY Rev. Growth

EBITDA Margin

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

CY 16A

CY 17E

CY 18E

16A/15A

17E/16A

18E/17E

CY 16A

CY 17E

CY 18E

12.7%

Business Intelligence & Analytics Splunk Inc.

$59.75

$8,268

($1,003)

$7,264

7.6x

6.1x

4.8x

NM

53.6x

38.1x

NM

NM

80.0x

42.1%

26.3%

25.6%

NM

11.3%

Tableau Software, Inc.

$71.31

5,561

(993)

4,568

5.5

5.2

4.8

NM

67.5

53.2

NM

NM

NM

26.5%

6.6%

9.0%

NM

7.7%

8.9%

Fair Isaac Corporation

$140.49

4,303

481

4,784

5.3

5.1

4.7

23.1

19.8

17.5

35.5

27.7

23.5

6.1%

4.7%

6.8%

23.0%

25.6%

27.2%

Teradata Corporation

$31.91

4,177

(532)

3,645

1.6

1.7

1.7

9.6

10.3

10.4

33.6

25.6

24.7

(8.2%)

NM

(0.5%)

16.4%

16.8%

16.7%

Verint Systems Inc.

$37.15

2,328

406

2,735

2.6

2.4

2.3

28.1

10.6

9.6

NM

13.7

12.1

(6.0%)

7.3%

5.9%

9.2%

22.6%

23.7%

Cloudera, Inc.

$17.27

2,265

(222)

2,043

7.8

5.9

4.7

NM

NM

NM

NM

NM

NM

57.2%

33.3%

26.0%

NM

NM

NM

MicroStrategy Incorporated

$135.73

1,554

(632)

921

1.8

1.8

1.8

7.9

10.3

14.2

17.2

28.8

28.8

(3.3%)

NM

3.1%

22.6%

17.7%

12.5%

Alteryx, Inc.

$22.98

1,350

(153)

1,197

14.0

9.5

7.0

NM

NM

NM

NM

NM

NM

59.4%

46.3%

35.9%

NM

NM

NM

Hortonworks, Inc.

$14.86

983

(72)

911

4.9

3.7

2.9

NM

NM

96.4

NM

NM

NM

51.3%

34.2%

26.7%

NM

NM

3.0%

Gridsum Holding Inc.

$7.31

217

(13)

205

3.5

2.2

1.4

NM

NM

5.4

NM

NM

9.3

59.4%

59.1%

60.1%

NM

1.8%

26.0%

Datawatch Corporation

$10.75

131

(29)

102

3.2

2.8

NA

NM

NM

NA

NM

NM

NA

4.4%

15.7%

NA

NM

NM

NA

Attunity Ltd.

$6.63

113

(10)

103

1.9

1.7

1.4

NM

19.0

16.2

NM

NM

26.5

13.1%

13.0%

17.8%

NM

8.8%

8.8%

Mean

5.0x

4.0x

3.4x

17.2x

27.3x

29.0x

28.7x

24.0x

29.3x

25.2%

24.7%

19.7%

17.8%

14.0%

15.5%

Median

4.2

3.2

2.9

16.4

19.0

16.2

33.6

26.7

24.7

19.8%

21.0%

17.8%

19.5%

14.1%

12.7%

Vertical Cerner Corporation

$63.08

$20,916

($94)

$20,823

4.4x

4.0x

3.7x

15.8x

12.2x

11.1x

34.1x

25.2x

22.8x

8.2%

10.6%

8.2%

27.9%

32.8%

33.2%

Constellation Software Inc.

$552.85

11,716

(70)

11,646

5.5

4.8

4.2

28.6

18.3

16.0

56.7

25.2

21.7

15.6%

13.9%

13.6%

19.2%

26.2%

26.4%

Veeva Systems Inc.

$62.12

8,681

(664)

8,018

14.7

12.0

10.0

65.8

37.7

31.2

NM

74.9

62.2

32.9%

23.1%

19.6%

22.4%

31.8%

32.1%

SS&C Technologies Holdings, Inc.

$37.94

7,789

2,209

9,997

6.7

5.9

5.6

19.5

14.6

13.1

59.3

19.6

17.3

48.1%

13.5%

5.4%

34.7%

40.8%

42.9%

athenahealth, Inc.

$141.45

5,648

209

5,857

5.4

4.8

4.2

54.7

22.0

18.3

NM

74.0

57.8

17.1%

13.1%

13.6%

9.9%

21.7%

22.9%

Guidewire Software, Inc.

$70.99

5,280

(477)

4,803

10.7

8.8

7.5

NM

41.0

32.6

NM

82.8

62.5

13.6%

21.0%

17.1%

4.3%

21.5%

23.1%

Medidata Solutions, Inc.

$77.71

4,546

(96)

4,450

9.6

8.0

6.8

67.9

32.7

26.4

NM

60.6

51.5

18.1%

19.5%

18.4%

14.1%

24.6%

25.7%

Blackbaud, Inc.

$87.66

4,117

370

4,487

6.1

5.7

5.2

36.0

23.4

21.4

99.6

41.1

36.8

14.6%

7.7%

8.8%

17.1%

24.3%

24.5%

CoreLogic, Inc.

$45.48

3,834

1,552

5,387

2.8

2.9

2.8

12.8

11.4

10.6

37.0

19.6

17.6

27.8%

NM

3.3%

21.5%

25.4%

26.5%

RealPage, Inc.

$40.10

3,314

71

3,386

6.0

5.1

4.4

41.6

20.8

16.8

NM

43.3

34.7

21.3%

17.0%

15.2%

14.3%

24.5%

26.4%

Ellie Mae, Inc.

$88.95

3,058

(334)

2,724

7.6

6.8

5.6

37.2

23.1

17.8

77.3

59.1

47.7

41.9%

12.0%

19.7%

20.3%

29.2%

31.6%

WebMD Health Corp.

$66.30

2,464

(63)

2,401

3.4

3.3

3.2

12.8

10.1

9.7

33.7

32.1

31.9

10.8%

2.6%

2.8%

26.7%

33.0%

33.2%

Allscripts Healthcare Solutions, Inc.

$13.12

2,370

1,264

3,633

2.3

2.0

1.8

23.9

10.3

9.1

NM

21.3

18.1

11.8%

14.6%

13.1%

9.8%

19.9%

20.0%

Inovalon Holdings, Inc.

$14.00

2,041

(280)

1,761

4.1

3.9

3.6

23.7

16.4

14.4

78.0

46.0

39.0

(2.2%)

5.4%

8.0%

17.3%

23.9%

25.1%

AppFolio, Inc.

$35.00

1,185

(32)

1,153

10.9

8.3

6.6

NM

66.2

45.4

NM

NM

NM

40.8%

30.8%

26.1%

NM

12.6%

14.6%

Instructure, Inc.

$29.85

877

(26)

851

7.7

5.5

4.2

NM

NM

NM

NM

NM

NM

51.5%

38.7%

31.0%

NM

NM

NM

HealthStream, Inc.

$23.19

739

(116)

624

2.8

2.5

2.3

29.7

17.2

14.6

NM

NM

80.0

8.1%

9.3%

9.4%

9.3%

14.7%

15.8%

Silver Spring Networks, Inc.

$11.17

594

(118)

476

1.5

1.6

1.4

NM

49.0

14.5

NM

NM

38.4

(36.5%)

NM

12.7%

NM

3.2%

9.7%

Castlight Health, Inc.

$4.30

566

(90)

476

4.7

3.6

2.8

NM

NM

NM

NM

NM

NM

35.0%

30.7%

27.5%

NM

NM

NM

Exa Corporation

$14.04

209

(25)

185

2.5

2.4

2.2

41.3

30.0

18.5

NM

NM

NM

10.9%

5.7%

11.5%

6.2%

8.0%

11.7%

Mean

6.0x

5.1x

4.4x

34.1x

25.3x

19.0x

59.5x

44.6x

40.0x

19.5%

16.1%

14.3%

17.2%

23.2%

24.8%

Median

5.4

4.8

4.2

29.7

21.4

16.4

58.0

42.2

37.6

16.4%

13.7%

13.3%

17.2%

24.4%

25.4%


10

PUBLIC SAAS COMPANIES – VALUATION CORRELATION TO GROWTH AND CASH FLOW Valuation Correlation to Growth

Valuation Correlation to Growth & Free Cash Flow

15.0x

15.0x

R = 0.66

R = 0.71 SHOP

SHOP

12.0x

VEEV

Enterprise Value / CY 2017E Revenue

Enterprise Value / CY 2017E Revenue

12.0x

PCYG

PAYC WDAY

AZPN

9.0x

AYX NOW MULE TWOU

6.0x

LPSN

3.0x

OKTA

CLDR APPN NEWR PCTY HUBS ULTI CRM MIME ZEN BLKB QLYS YEXT CALD FIVN INST LOGM RNG RP BOX CSOD JCOM WK CSLT BNFT SPSC APTI AMBR CARB BV ECOM BCOV

VEEV

PCYG WDAY

9.0x

AZPN

HUBS NEWR QLYS CALD MIME YEXT PCTY FIVN ZEN CRM ULTI BLKB LOGM INST RP RNG CSOD BOX

APPN

6.0x

3.0x

CSLT

WK BNFT AMBR APTI BV

NOW

OKTA COUP

TWOU

CLDR

LPSN

MULE

AYX PAYC

SPSC

JCOM

CARB

ECOM

BCOV

0%

10%

20%

30%

40%

50%

60%

CY2017E Revenue Growth

Notes: Source: Capital IQ as of 08/04/2017. Consensus Estimates used for CY2017E figures. Estimates for MRIN are not available.

70%

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

CY 2017E Revenue Growth % + CY 2017E FCF Margin %

11

RECENT ACQUISITIONS Select Software M&A Transactions ($MM)

Announced Date 8/3/17

8/3/17

Enterprise Acquirer

Target

Symantec Corporation DigiCert Inc. [Thoma (Website Security Bravo] ( ) (Website Security Business Assets) business assets) Active Network Inc. [fka (The Active )

Global Payments Inc.

EV / Revenue

EV / EBITDA

Target Sector

Value (EV)

LTM

NTM

LTM

NTM

Application Software

$950

NA

2.4x

NA

NA

The Website Security business and PKI assets of Symantec, which provides security SaaS and services for businesses and consumers globally


$1,200

NA

NA

NA

NA

The communities and sports divisions of Active Network, which provides administration, membership, donations and event management SaaS for non-profit organizations

$250

NA

5.0x

NA

NA

Provides property management software featuring document management, electronic signatures, website development, background screening, legal contract management, payment processing and cloud computing

(Communities & Sports Divisions) Network] [Vista

On-Site Manager Inc. (assets)Application Software

Target Description

8/2/17

RealPage

8/1/17

Navient [fka Sallie Mae] Duncan Solutions Inc.


$80

1.5x

NA

NA

NA

Provides customer service automation, billing, citation management, asset recovery, and transportation database systems and outsourced services for municipalities and toll authorities

7/27/17

Verisk Analytics Inc. G2 Web Services LLC

Security

$112

NA

NA

NA

NA

Provides merchant risk intelligence software for the investment and financial industries

Information Management

$225

2.1x

1.9x

NM

18.9x


$850

9.7x

NA

NA

NA

Provides accounting and financial management software as a service (SaaS) for businesses


$1,370

NA

NA

NA

NA

Provides CRM, ERP, transaction processing, and document and records management software, software as a service (SaaS) and systems integration services for public sector agencies globally


$60

NA

NA

NA

NA

Provides AI-based content creation software to businesses. Software provides a linguistic analytics engine that can "read" content and provides grammar editing, monitoring, scoring, analytics reporting and development to written enterprise content

7/12/17


$80

NA

NA

NA

NA

Provides real-time contextual marketing enablement and customer experience personalization SaaS for companies in the hospitality, dining, healthcare, entertainment, travel and education sectors

7/7/17


$133

3.3x

NA

20.6x

NA

Provides SCM SaaS for businesses primarily within the US, UK and Europe. Software provides features for procurement, SRM, contract management and spend analysis


$1,260

NA

NA

NA

NA

Provides open-source and Windows-based software for businesses. Software provides features for data management, integration and backup

Infrastructure Management

$55

1.0x

NA

NA

NA

Provides enterprise IT automation and workspace management software to businesses. Features include IT store management, service desk optimization, on-boarding and off-boarding and workforce security

Hosted Services

$200

2.0x

NA

20.0x

NA

Provides infrastructure as a service (IaaS), backup and recovery, firewall, cloud storage and remote monitoring and management services for businesses

Hosted Services

$135

2.3x

2.2x

NM

148.3x

7/26/17

Open Text

Guidance Software

7/25/17

Sage Group

Intacct Corp.

7/24/17

Partners Group

7/24/17

GENUI AG

(

Civica pl

)

Acrolinx GmbH

7/6/17

(

)

7/5/17

6/14/17

6/14/17

(

)

Provides e-discovery and forensic investigation software that analyzes the contents of an individual or networked computer for businesses and law enforcement agencies globally

Operates as a domain name registry and provides domain name services to consumers and businesses

Notes: Source: Capital IQ and Wall Street Estimates. Reflects M&A activity through 08/04/2017, where Enterprise Value is > $50MM. Transactions highlighted in yellow denote Private Equity Acquirers.

12


Announced Date

Enterprise Acquirer

Target

EV / Revenue

EV / EBITDA

Target Sector

Value (EV)

LTM

NTM

LTM

NTM

6/5/17

Security

$69

1.0x

NA

NM

NA

Provides identity and access management SaaS, as well as IoT application development SaaS, for businesses

6/2/17


$260

NA

NA

NA

NA

Provides transaction and payment processing software, SaaS and services for businesses. Also provides related in-store payment terminals


$1,125

NA

NA

NA

NA

Provides enterprise SQL Server administration, performance management, backup and recovery, and compliance software. Also provides Windows PowerShell interactive development environment (IDE) software


$531

5.5x

4.7x

NM

NM

Provides sales performance and compensation management, analytics and planning software as a service (SaaS) for businesses


$59

4.6x

NA

NA

NA

Provides payroll, workforce and business tax management software and data hosting services for businesses

5/11/17

Mobility

$125

NA

NA

NA

NA

Provides artificial intelligence (AI), conversation-based mobile user interface development software for developers

5/9/17


$96

5.6x

NA

16.5x

NA

Provides customer address verification software as a service (SaaS) to e-commerce companies and other businesses. Also provides verification SaaS for other customer data such as phone numbers and email addresses


$490

6.1x

5.2x

14.0x

NA

Provides software, Web application and API code review, testing and quality assurance (QA) software for businesses

5/1/17

Enterprise Networking

$610

24.4x

15.3x

NA

NA

Provides cloud-based WAN virtualization software that enables businesses to build unified carrier agnostic WAN and network infrastructures that connect them to their facilities, users and applications

5/1/17


$344

1.7x

1.7x

69.1x

15.1x

Provides social media-based team collaboration and social media monitoring and marketing software as a service (SaaS) for businesses

Mobility

$270

NA

1.1x

NA

10.3x

Provides telecom expense management, network provisioning, M2M and mobile device management software and SaaS for businesses. Also provides related business process outsourcing (BPO) services

4/25/17

Security

$230

2.3x

1.8x

23.0x

NA

Offers cloud-based APIs and SDKs to help prevent registration fraud, reduce the risk of account takeover and authenticate end users across account lifecycles

4/25/17


$75

1.9x

NA

NA

NA

Provides networked business intelligence (BI) analytics and reporting SaaS for businesses. Software also provides features for data processing and aggregation, data warehouse automation, and the reporting and analysis of CRM, sales and supply chain analytics

4/12/17


$120

NA

NA

NA

NA

Provides channel data management SaaS for the consumer electronics sector globally. Software enables companies to intelligently manage global indirect channel sales and inventory data, as well as increase channel visibility

4/4/17


$80

0.7x

NA

NA

NA

Provides customer relationship management (CRM) SaaS that tracks and logs all telephone, text, chat and email-based communications for healthcare markets. Also provides customer analytics software and a directory of healthcare insurance plans

5/31/17

(

)

5/30/17

5/26/17 Asure Software Inc.

5/3/17

4/28/17

( LLC iSystems

(

Marlin Equity Partners

)

)

Tangoe

Target Description


13


Announced Date

Enterprise Acquirer

Target

EV / Revenue

EV / EBITDA

Target Sector

Value (EV)

LTM

NTM

LTM

NTM

4/3/17


$50

NA

NA

NA

NA

Provides scholarship management SaaS for K-12 schools, universities and nonprofits. Software provides features for the digital management, awarding, reporting and stewardship of academic awards for students

4/3/17


$73

4.8x

NA

NA

NA

Provides mathematical data analysis and modeling software to engineering and scientific research markets

4/3/17


$92

0.5x

NA

NA

NA

Provides trading software, collaborative data management and EDI software for the securities trading sector


$400

NA

NA

NA

NA

Experian's cross-channel marketing business, which provides marketing automation and email advertising SaaS and outsourced BPO services for businesses and ad agencies worldwide

Security

$366

NA

NA

NA

NA

Operates as the Chinese division of NQ Mobile, which provides Android, Windows Phone, Symbian and BlackBerry smart phone anti-virus and anti-malware software for businesses and consumers globally. Also provides mobile call blocking and device optimization software


$200

6.3x

4.4x

NA

NA

Provides Web and mobile application testing software for enterprises. Features include website performance testing and management, application load testing, and performance analytics


$270

NA

NA

NA

NA

Provides water resource and environmental management and simulation software to the utilities industry globally. Stantec obtained ownership of Innovyze through the 2016 acquisition of MWH Global


$205

7.3x

NA

NA

NA

Provides investment portfolio business intelligence (BI) software for the investment and finance sector globally. Software provides features for data management, portfolio performance analytics, risk management and reporting

3/7/17

Security

$614

5.6x

NA

NA

NA

Provides automated application penetration and network vulnerability testing SaaS for enterprise software developers

3/7/17


$317

5.3x

NA

NA

NA

Provides on-premise and cloud-based accounting and performance management software and SaaS, including budgeting, planning, reporting and analytics, for businesses

2/28/17

Security

$105

10.5x

NA

NA

NA

Provides behavior-based profiling SaaS for enterprises, enabling breach-detection and visibility into advanced or targeted attacks, insider threats and malware that have circumvented traditional security controls


$290

8.1x

NA

29.0x

NA

The multi-family housing business and product portfolio of Rainmaker, which provides revenue budgeting, forecasting and revenue cycle management software for multi-family real estate sectors

2/23/17

Enterprise Networking

$325

5.4x

NA

NA

NA

Provides software-based domain name services (DNS), Dynamic Host Configuration Protocol (DHCP) and IP address management SaaS for enterprises

2/23/17


$175

2.4x

2.3x

27.5x

20.3x


$102

1.3x

NA

NA

NA

4/3/17 (Cros s -channel Ma rketing Division)

3/30/17

(Tongfang Investment Fund Series SPC)

(Bei jing Feiliu Ji utian Technology Co.)

3/29/17

3/21/17

(

3/20/17

(

) )

2/27/17 (Multi-Family Housing Business)

( 2/15/17

)

Target Description

Provides Web-based SaaS for the automation and management of performance appraisals, feedback, compensation management, succession planning, job descriptions, learning management and recruiting for corporate HR departments Provides insurance policy and pharmacy claims processing software and SaaS for the insurance and pharmaceutical sector. Also provides colocation, disaster recovery, managed hosting and systems integration services


14


Announced Date

Enterprise Acquirer

Target

2/14/17

EV / Revenue

EV / EBITDA

Target Sector

Value (EV)

LTM

NTM

LTM

NTM

Target Description


$59

1.9x

1.6x

NM

10.7x

Provides wealth management and ERP and transaction processing SaaS for the investment and finance sector globally

Provides network management and operational support system (OSS) software and related managed services for telecom service provides globally

2/9/17

Nokia Corporation

Comptel Corporation

Carrier Infrastructure

$373

3.5x

3.1x

29.6x

17.5x

2/8/17

Sophos

Invincea

Security

$120

12.2x

NA

NA

NA

Provides endpoint security software for small businesses and enterprises in the healthcare, financial services and government industries

2/2/17

Hexagon AB

MSC Software Corporation ( )


$834

3.6x

NA

NA

NA

Provides motion control, dynamics and acoustical vibration simulation and modeling software for businesses

2/1/17

Fingerprint Cards AB

Delta ID Inc.

Security

$120

NA

NA

NA

NA

Provides iris recognition biometric systems for use in mobile devices and automobiles

Storage

$67

NA

NA

NA

NA

Provides on-site, hosted and cloud-based back-up and recovery, data protection and replication software for use in disaster recovery for businesses

1/27/17


$128

NA

NA

NA

NA

Provides K-12 education assessment management software for schools and educators

1/25/17


$1,400

NA

NA

NA

NA

Provides electronic medication prior authorization software for pharmacies, healthcare providers, and pharmaceutical companies. Software is integrated into electronic health records so that healthcare providers and doctors can provide electronic authorization

1/24/17


$3,903

18.9x

NA

NM

NA

Provides application performance management (APM) SaaS and mobile applications, enabling the monitoring and troubleshooting of applications, extensions, plugins, databases, and servers for businesses. Also provides related analytics reporting software

Hosted Services

$84

NA

NA

NA

NA

Provides domain name registration and related services to corporate and consumer website owners. Related services include web hosting and an auction service for website domain name resellers


$800

4.6x

NA

NA

NA

Provides project and portfolio management SaaS and related systems integration services for enterprises. Software includes features for plan design, agile project portfolio management and cost analysis and control

1/17/17

Storage

$650

6.5x

NA

NA

NA

Provides backup and recovery storage systems and storage management software for businesses. Storage systems feature virtual machine (VM) level management, in-line de-duplication and compression of data, including backup copies of VMs that can be replicated to secondary datacenters

1/9/17


$425

NA

NA

NA

NA

Provides social collaboration online software for enterprise employees and consumers. Software allows employees and consumers to create "boards" where members collaborate to complete tasks for a project

1/4/17


$134

19.1x

7.0x

NA

NA

Provides health benefits management SaaS for businesses. Software provides features for financial management, customized health benefit plans, and data and analytics reporting

12/23/16


$53

NA

NA

NA

NA

Provides cloud-based global import and export trade reference software and an online database of analysis content, cargo details and related company profiles for businesses at www.datamyne.com

(

1/31/17

(

)

)

1/20/17 (

)

1/19/17

(

)


15


Announced

Enterprise

Date

Acquirer

Target

EV / Revenue

EV / EBITDA

Target Sector

Value (EV)

LTM

NTM

LTM

NTM


$67

NA

NA

NA

NA

Provides client reporting software and services for the investment and financial services sectors globally

Security

$560

NA

NA

NA

NA

Provides digital rights management SaaS for businesses and content producers, as well as an online digital music and video content recognition database for consumers and the entertainment sector

12/19/16


$160

3.9x

NA

NA

NA

Provides insurance policy administration and management software as a service (SaaS) and on-premise for property and casualty insurance companies. Features include claims management, billing and document management. Also provides related services

12/19/16

Mobility

$67

NA

NA

NA

NA

Designs and develops graphical user interfaces (GUI) for mobile phones and automotive displays, to automotive and other embedded display manufacturers


$130

NA

NA

NA

NA

The vendor management software and related assets of Beeline, which provides vendor management systems (VMS) for businesses globally. Software provides spending management, procurement cycle automation and quality control monitoring


$60

NA

NA

NA

NA

Provides on premise and cloud-based channel and contract management software for businesses in the life sciences industry. Software provides features for revenue management, contract lifecycle management and performance analytics reporting

Security

$850

4.0x

NA

NA

NA

The identity management business of 3M, which consists of 3M Cogent, a biometric identification system, and 3M's document reader and secure materials systems and software


$850

NA

NA

NA

NA

Sungard's public sector business, which provides ERP administration SaaS for government and public safety entities and the K12 business, provides cloud-based administration and student management software for K-12 educators

Hosted Services / Managed Security Services

$1,800

2.6x

NA

29.4x

NA

Provides network and wireless network IT security auditing, compliance and penetration testing services for businesses and government agencies globally


$2,800

NA

5.2x

NA

14.0x

Provides ERP, HR management, CRM and project management software, SaaS and systems integration services, for government contractors, professional services firms and other project-based businesses

12/6/16


$856

2.9x

2.7x

42.8x

13.5x

Provides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas, technology and manufacturing industries to securely exchange documents and sync files

12/2/16


$65

6.5x

NA

NA

NA

Provides IoT predictive analytics, data mining and event processing software and SaaS for businesses

12/1/16


$636

5.1x

NA

NA

NA

Provides IT process automation and job scheduling software for businesses globally. Applications manage file transfers, virtual machine provisioning, application release management and error identification and remediation

All Software Median Mean

4.6x 5.5x

2.7x 4.0x

27.5x 30.2x

15.1x 29.8x

PE Acquirers Median

4.6x

0.6x

27.5x

15.1x

Mean

4.0x

3.3x

26.6x

57.3x

12/20/16

12/20/16

(

12/13/16

(

)

(

)

)

12/12/16 (

)

12/9/16 (Identity Management Business)

12/7/16

/

(Public Sector & K-12 Education Businesses)

12/6/16

(

)

12/6/16 (

)

Target Description


16

RECENT PRIVATE FINANCINGS ($MM)

Deal Date

Company

Amount Raised

8/3/17

rfXcel

$30

Provider of product serialization, traceability and compliance services for the life sciences and food and beverage industries.

Kayne Anderson Capital Advisors

8/2/17

17 Media

$40

Developer of a photo-sharing and live video-streaming application.

Golden Summit, KTB Ventures, Majuven, Vertex Ventures SE Asia & India, Yahoo JapanInfinity Venture Partners

8/2/17

Bread Operations

$126

Developer of an online financing platform designed to boost merchant sales.

Menlo Ventures, Bessemer Venture Partners, RRE Ventures

8/2/17

Dianrong

$220

Provider of a peer to peer lending platform designed to lend and borrow money online.

GIC, Simone Investment Managers, China Minsheng Investment

8/2/17

Neyber

$27

Provider of an employee lending platform intended to provide fair rates and cut credit costs.

Wadhawan Holdings

8/2/17

Particle

$25

Provider of an Internet of Things (IoT) platform created to help businesses connect and manage their connected devices.

Qualcomm Ventures, Spark Capital

8/1/17

CornerJob

$22

Developer of a mobile recruiting platform created to facilitate connections between blue-collar and service jobs.

Augesco Ventures, Innogest, Mediaset España Comunicación, Randstad Innovation Fund, 5M Ventures, Caixa Capital Risc, e.ventures, Media Digital Ventures, Mediaset, Northzone Ventures, Sabadell Capital, Samaipata Ventures, TF1 Group, Tv Azteca

8/1/17

Personal Capital

$115

Provider of online wealth management services.

IGM Financial

8/1/17

UnifyID

$23

Developer of an implicit authentication platform created to simplify the personal authentication process.

Accomplice VC, Andreessen Horowitz, New Enterprise Associates, StartX

7/31/17

carwow

$38

Provider of a car comparison platform to facilitate buying and selling of new cars.

Vitruvian Partners, Accel, Balderton Capital

7/27/17

Big Switch Networks

$31

Provider of software-defined networking products designed to disrupt the status quo of networking by designing intelligent, agile and flexible networks.

Dell Technologies Capital, Index Ventures (UK), Intel Capital, Khosla Ventures, Morgenthaler Ventures, MSD Capital, Redpoint Ventures, Silver Lake Management

7/27/17

Callsign

$35

Developer of a artificial intelligence-based authentication platform designed to provide the most secure and seamless authentication experience for enterprises and users.

Accel, Allegis Capital, NightDragon Security, PTB Ventures

7/27/17

DataRobot

$67

Developer of a machine learning automation platform designed to deploy accurate predictive models.

Open Field Capital, New Enterprise Associates

7/27/17

Juvo

$40

Developer of mobile identity scoring software designed to establish financial identities for the people who are creditworthy, yet financially excluded.

New Enterprise Associates, SignalFire, Wing Venture Partners

7/27/17

ShopEx

$103

Provider of an e-commerce software intended to offer software systems and combine payment channels for e-commerce merchants.

China Broadband Capital Partners, China Renaissance, CyberAgent Ventures, Gopher Asset Management Company, Joy Capital, K2VC, New Alliance Capital, Tianxing Capital

Brief Description

Investors

Notes: Source: Pitchbook. Reflects deal activity through 08/04/2017. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

17


Deal Date

Company

Amount Raised

7/26/17

FabHotels

$25

Operator of on online hotel portal designed to provide budget hotels in India.

The Goldman Sachs Group, Accel

7/26/17

Marqeta

$25

Provider of a payment platform intended to offer the world's first fully documented, open API issuer payment processor.

CreditEase, Visa83North, Commerce Ventures, CommerzVentures, Granite Ventures, IA Capital Group

7/26/17

Sentient Science

$23

Developer of a computational testing technology intended to replace physical testing with virtual testing in materials, components, assemblies, and platforms.

Georgian Partners

7/26/17

Shanghai Liulishuo Information Technology

$100

Provider of a AI based language learning application designed to make people speak English fluently.

Cherubic Ventures, China Media Capital, GGV Capital, Hearst Ventures, IDG Capital, Trustbridge Partners, Wu Capital

7/26/17

WalkMe

$75

Developer of an enterprise guidance and engagement platform designed to help users who don't have the time or inclination to study new features.

Flint Capital, Giza Venture Capital, Insight Venture Partners, Mangrove Capital Partners, Scale Venture Partners

7/26/17

Within (Virtual reality)

$40

Developer of a virtual reality (VR) content and technology platform designed to explore and expand the potential of immersive storytelling.

Emerson Collective, MACRO, Temasek Holdings, WPP Ventures, 21st Century Fox, Andreessen Horowitz, Raine Ventures

7/25/17

Duolingo

$25

Developer of a language learning platform designed to help people to read, listen and speak multiple languages.

Drive Capital

7/25/17

Ibotta

$25

Provider of a mobile application designed to give cash rewards against a purchase instead of giving credit points.

GGV Capital, Harbor Spring Capital, Haystack Partners, James Clark, Tom Jermoluk

7/25/17

Momenta.ai

$46

Developer of an AI based semantic HD mapping for autonomous driving created to empower self-driving cars to become a reality.

Daimler, Hillhouse Capital Group, NIO Capital, Sequoia Capital China, Unity Ventures, Shunwei Capital, Sinovation Ventures

7/25/17

Toast (restaurant management)

$101

Developer of a restaurant management platform designed to simplify and streamline operations.

Generation Investment Management, Lead Edge Capital, Bessemer Venture Partners, GV

7/24/17

Grab

$2,500

Provider of an online ride-hailing platform created to offer booking services for taxis, private cars and motorbikes in Southeast Asia.

Didi Chuxing, SoftBank Capital

7/24/17

Nyotron Information Security

$21

Developer of an antivirus software intended to secure the world.

DGB Investments, Amos Malka, Mivtach Shamir Holdings, Saban Capital Group

7/24/17

PerimeterX

$23

Provider of a cloud, network and web security platform designed to prevent automated attacks.

Canaan Partners, Data Collective, Vertex Ventures US

7/24/17

Rimilia

$25

Developer of cash allocation software.

Eight Roads Ventures, Kennet Partners

7/21/17

Betterment

$70

Provider of an online investment platform intended to offer financial advisory services.

Bessemer Venture Partners, Francisco Partners, Kinnevik, Menlo Ventures

Brief Description

Investors


18


Deal Date

Company

Amount Raised

Brief Description

7/21/17

Borrowell

$43

Developer of an online lending platform designed to offer personal loans and free credit scores.

White Star Capital, Equitable Group, Portag3 Ventures

7/20/17

Acorns

$40

Developer of mobile application designed to offer automatic sync of credit card information and make investments.

Bain Capital Ventures, Greycroft Partners

7/20/17

Dynamic Yield

$31

Developer of software systems for maximizing Web-traffic monetization.

Baidu, Cerca Partners, ClalTech, Deutsche Telekom Capital Partners, Emerge, Global Founders Capital, La Maison Investments, Vertex Ventures Israel, Bessemer Venture Partners, Innovation Endeavors, Marker

7/20/17

PebblePost

$47

Provider of digital-to-direct mail platform designed to transform real-time online activity into personalized, dynamically rendered direct mail delivered to postal hubs within 12 to 24 hours.

RRE Ventures, Greycroft Partners, Tribeca Venture Partners

7/20/17

Receipt Bank

$50

Developer of a bookkeeping automation software designed to automatize small business bookkeeping.

Insight Venture Partners

7/19/17

Kahoot

$20

Provider of a game-based learning platform designed to help teachers create tailored quizzes and exams.

Creandum, Microsoft Ventures, Northzone Ventures

7/19/17

Nauto

$159

Provider of an online traffic monitoring device.

General Motors, Greylock Partners, SoftBank Group, Allianz Ventures, BMW i Ventures, Draper Nexus, Playground Global, Toyota Research Institute

7/19/17

Pendo

$25

Provider of a cloud-based product experience platform designed to increases trial conversions and accelerates time to value.

Meritech Capital Partners, Battery Ventures, Contour Venture Partners, Core Capital Partners, IDEA Fund Partners, Salesforce Ventures, Spark Capital

7/18/17

Alation

$23

Developer of an enterprise collaborative data platform designed to empower employees inside data-driven enterprises to find, understand and use the right data.

Harmony Partners, Icon Ventures, Costanoa Venture Capital, Data Collective

7/18/17

Capital.com

$25

Developer of an artificial intelligence based trading software created to trade in financial instruments with their mobile devices.

Larnabel Ventures, VP Capital

7/18/17

FreshBooks

$43

Developer of a cloud-based small business accounting software designed to make online invoicing easy and secure.

Accomplice VC, Georgian Partners, Oak Investment Partners

7/18/17

NewStore

$50

Provider of an online order and workflow automation tool and platform.

Stephan Schambach, Activant Capital Group, General Catalyst Partners

7/18/17

SpotHero

$30

Developer of an on-demand mobile parking application designed to offer easy parking facilities.

AutoTech Ventures, Corazon Capital, Daniel Hoffer, Global Founders Capital, Levy Family Partners, Math Venture Partners, Sam Yagan, Bullpen Capital, Chicago Ventures, Draper Associates, Insight Venture Partners, OCA Ventures, Pritzker Group Venture Capital

7/17/17

Particle

$20

Provider of an Internet of Things (IoT) platform created to help businesses connect and manage their connected devices.

Qualcomm Ventures, Spark Capital

7/17/17

Artsy

$50

Provider of an online platform for collection of contemporary art for art lovers.

Avenir Growth Capital, Greg Maffei, Joe Gebbia, Robert Pittman, Shumway Capital Partners, Dasha Zhukova, L Catterton, Larry Gagosian, Richard Barton, Rockefeller family, Sky Dayton, Thrive Capital, Wendi Murdoch

Investors


19


Deal Date

Company

Amount Raised

7/14/17

VistaraIT

$20

Developer of a SaaS platform created to manage modern IT operations.

NA

7/14/17

Assent (Compliance Management)

$31

Developer of compliance management software designed to help organizations collect data and stay in compliance with local and international regulations.

Greenspring Associates, Business Development Bank of Canada, National Research Council Canada, OpenText Enterprise Apps Fund, Royal Bank of Canada, Volition Capital

7/13/17

CellSavers

$20

Provider of an in-home repair and installation platform intended to verify repairs and support for smart device.

Red Dot Ventures, Carmel Ventures, Sequoia Capital Israel

7/12/17

Zhenkunhang

$53

Operator of an industrial products distribution platform created to offer one-stop MRO purchasing and management services.

Eastern Bell Venture Capital, Shenzhen Cowin Venture Capital Investments

7/12/17

Rover

$65

Operator of a pet-sitter network developed to connect pet owners with dog walkers and sitters.

Alpha Venture Partners, Bespoke Management, Spark Capital, StepStone Group, Foundry Group, Madrona Venture Group, Menlo Ventures, OMERS Ventures, Technology Crossover Ventures

7/12/17

Revolut

$66

Provider of mobile foreign exchange services designed to help in global money transfer.

Balderton Capital, Index Ventures (UK), Ribbit Capital

7/12/17

Quantitative Brokers

$24

Provider of advanced algorithms and data-driven analytics to clients in the futures and US cash treasury markets.

Centana Growth Partners

7/12/17

Flashpoint (threat intelligence)

$28

Provider of a business risk intelligence platform intended to empower intelligent decision making.

Georgian Partners, Bloomberg Beta, Cisco Investments, Greycroft Partners, Jump Capital, Leaders Fund, TechOperators

7/12/17

Deep Instinct

$32

Provider of cyber security for mobile and endpoints by applying deep learning designed to protect against the most evasive unknown malware in real-time.

Coatue Management, Nvidia, Columbus Nova Technology Partners

7/11/17

Lastline

$29

Developer of an enterprise security platform designed to detect and defend advanced malware in network.

Barracuda Networks, NTT Finance, Osage University Partners, Thomvest Ventures, WatchGuard Technologies, Redpoint Ventures

7/11/17

HyTrust

$36

Provider of a cloud security software designed to automate compliance and enforce securitybased policies across private and public clouds.

Advance Venture Partners, Cisco Investments, EPIC Ventures, Fortinet, Intel Capital, Sway Ventures, Trident Capital, Vanedge Capital, VMware

7/11/17

Gong (Software)

$20

Provider of a sales conversation intelligence platform created to improve calls and demos for sales teams.

Next World Capital, Wing Venture Partners, Norwest Venture Partners, Shlomo Kramer

7/10/17

TruMid

$28

Provider of an electronic credit trading platform created to unlock liquidity for institutional clients.

CreditEase, DB1 Ventures

7/10/17

StashInvest

$42

Developer of a mobile investment application designed to empower investors and provide access to financial opportunities.

Coatue Management, Breyer Capital, Goodwater Capital, Valar Ventures

7/10/17

Darktrace

$75

Provider of cyber threat defense systems designed to detect and respond to previously unidentified threats.

Insight Venture Partners, Kohlberg Kravis Roberts, Summit Partners, Ten Eleven Ventures

Brief Description

Investors


20


Deal Date

Company

Amount Raised

7/10/17

CompareAsiaGroup

$50

Provider of a financial comparison platform designed to offer information on personal finance.

Alibaba Entrepreneurs Fund, H&Q Asia Pacific, International Finance Corporation, SBI HoldingsACE & Company, Goldman Sachs Investment Partners, Nova Founders Capital, Route 66 Ventures

7/5/17

Droom

$20

Operator of an online automobile marketplace designed to make buying and selling automobiles easy, quick and trusted.

Beenext Ventures, Beenos Asia, Digital Garage, Integrated Asset Management, Lightbox

7/3/17

UrbanClap

$21

Provider of a platform for finding local service professionals designed to expand service businesses.

Vy CapitalAccel, Bessemer Venture Partners, SAIF Partners

6/30/17

Kinetica

$50

Provider of GPU-accelerated relational database designed to run applications much faster.

Canvas Ventures, Citi Ventures, Meritech Capital PartnersRaymond Lane

6/28/17

Platform9

$22

Provider of an open source-as-a-service platform designed to help companies manage their cloud software deployments.

Canvas Ventures, Hewlett Packard EnterpriseRedpoint Ventures

6/27/17

Sumo Logic

$75

Provider of cloud-based machine data analytics service designed to deliver real-time continuous intelligence from structured, semi-structured and unstructured data across the entire application life-cycle and stack.

Sapphire VenturesAccel, DFJ Growth, Greylock Partners, IVP, Sequoia Capital, Sutter Hill Ventures

6/27/17

SiteHands

$25

Provider of information technology field services through a unique two-sided platform which provides orchestration and simplification with end-to-end accountability and continuous optimization.

FTV Capital

6/27/17

Riskified

$33

Developer of an e-commerce fraud-prevention technology designed to turn fraud management into a growth engine for online retailers.

C4 Ventures, Capital One Growth Ventures, Groupe Arnault, Pascal Cagni, Pitango Venture CapitalGenesis Partners, Phoenix Insurance Company, Qumra Capital

6/27/17

Resolver

$20

Provider of enterprise governance, risk and compliance software services.

Klass Capital

6/27/17

DiffBlue

$22

Developer of an automated testing software designed to improve code testing.

Goldman Sachs Principal Strategic Investments, Oxford Investment Consultants, Oxford Sciences Innovation

6/27/17

CloudHealth Technologies

$46

Provider of cloud-management software to develop a service that complements, not displaces, the existing infrastructure.

Kleiner Perkins Caufield & Byers, Meritech Capital Partners.406 Ventures, Sapphire Ventures, Scale Venture Partners

6/27/17

Catalant Technologies

$41

Provider of an online talent network designed to streamline access to expertise.

Mark NunnellyBob Doris, GE Ventures, General Catalyst Partners, Greylock Partners, Highland Capital Partners, Mark Cuban, Scott Cook, The Kraft Group

6/27/17

Auth0

$30

Developer of a cloud based Identity as a Service platform designed to integrate directly, manage identity and authentication into cloud platforms.

Meritech Capital Partners, NTT Docomo Ventures, Telstra VenturesBessemer Venture Partners, K9 Ventures, Trinity Ventures

6/26/17

SparkCognition

$33

Provider of a data-driven cognitive computing analytics platform designed to harness real-time sensor data.

Boeing HorizonXVerizon Ventures

6/26/17

Fintonic

$28

Developer of a mobile financial management platform designed to make personal finances available to all the public.

ING Group, Premier Specialty Network

Brief Description

Investors


21

SOFTWARE CAPITAL MARKETS UPDATE Recent Software IPO Pricings ($MM)

Market Cap @ IPO Date

Amount Raised

Pre IPO Filing Range

Offer Price

% Change Offer / Midpoint Price

% Change 1st Trading Day / Offer Price

% Change Current / Offer Price

25-May-17

$787

$75

11.00 - 13.00

$12.00

-

25.1%

64.3%

28-Apr-17

$2,318

$225

12.00 - 14.00

$15.00

15.4%

21.3%

15.1%

13-Apr-17

$1,146

$116

8.00 - 10.00

$11.00

22.2%

21.9%

16.3%

7-Apr-17

$2,134

$187

15.00 - 17.00

$17.00

6.3%

38.3%

35.4%

24-Mar-17

$873

$126

12.00 - 14.00

$14.00

7.7%

10.7%

64.1%

17-Mar-17

$3,118

$221

14.00 - 16.00

$17.00

13.3%

45.6%

27.9%

Offer Date (1)

Name

Notes: Source: Capital IQ and Company filings. Market Data as of 08/04/2017. (1) First Trading Day listed as Offer Date.

22

A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIES Strategic and Private Equity Exits Outweigh New Issues

PE Acquisitions

210

Strategic Acquisitions

IPO

200 195

6

(7)

11

(11)

(5)

190

(4) Fortinet CDC Software LogMeIn Medidata SolarWinds Rosetta Stone

180

170

7

(6)

(11)

(8)

17

(9)

17

16

(6) SciQuest RealPage IntraLinks Envestnet Qlik BroadSoft Higher One Convio SPS Commerce SS&C QuinStreet

(9)

11

(10)

(7)

(6)

9

(8) Jive Imperva Carbonite Tangoe Responsys Cornerstone Epocrates

160

Workday Fleetmatics Qualys Eloqua E2open ServiceNow Exa Incadea Infloblox Proofpoint Splunk ExactTarget Demandware Bazaarvoice Greenway AVG Guidewire

Mavenir Barracuda Wix.com Covisint RingCentral FireEye Cvent Gigamon Textura ChannelAdvisor Marketo Tableau Halogen Rally Marin Model N

Workiva Hortonworks New Relic HubSpot CyberArk MobileIron Kinaxis Zendesk Paycom OPOWER Five9 2U Borderfree Amber Road A10 Networks Paylocity Varonis Systems

Atlassian Mimecast Instructure Rapid7 Sophos AppFolio Alarm.Com Xactly Shopify Apigee Box

(12)

Twilio SecureWorks Talend Everbridge Apptio Gridsum Holding Nutanix Coupa BlackLine, Inc.

(9)

2009

IPO Strategic Exits PE Exits

2010

2009 +6 -7 -5

Notes: Sources: Capital IQ, company filings. Market Data as of 08/04/2017.

2011

2010 + 11 - 11 -4

2012

2011 +7 -8 -6

2013

2012 + 17 - 11 -9

2013 + 16 -9 -6

2014

2014 + 17 -6 -7

2015

2015 + 11 - 10 -8

(4)

2016

2016 +9 - 12 -9

(6)

157

Mulesoft Alteryx Okta Yext Cloudera Appian

150 2008

6

2017

2017 +6 -6 -4

23

VENTURE CAPITAL INDUSTRY TMT Transactions Since Q2 2002 $14

1,000

$12 800

600 $Bn

$8

$6 400

$4 200 $2

$0 Q2 2002

Q2 2003

Q2 2004

Q2 2005

Q2 2006

Q2 2007

Q2 2008

Q2 2009

Q2 2010

Q2 2011

Q2 2012

Q2 2013

Q2 2014

Q2 2015

Q2 2016

0 Q2 2017

Quarter - Year Number of Deals

(1)

Investment Amount

Notes: (1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and Equipment, Semiconductors, Software and Telecommunications until Q3 2016. As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software.

24

Number of Investments

$10

GCA OVERVIEW Deep Software Sector Expertise

Preferred Stock

Acquired by

Acquired by

Acquired by

Acquired by

Preferred Stock

Acquired by

Acquired by

Acquired by

We Advised the Seller





Financial Advisor




Acquired by

Acquisition of

Acquired by

Acquired by

Convertible Note Offering

Strategic Advisory Services

Investment by

Preferred Stock

Acquisition of



Financial Advisor

Financial Advisor


Financial Advisor

We Advised the Buyer



Acquisition of

Acquired by

Acquired by

Acquired by

Acquired by

Preferred Stock

Acquired by

Acquired by

Acquired by






Financial Advisor




Acquired by

Acquired by

Acquired by




Acquired by


Acquisition of


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Acquired by

Fairness Opinion to Buddy Media

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.

Acquired by


25

Software Sector Summary Report

Software Sector Summary Report

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