starting soon… · $7.8b $3.1 b $1.0b $6.8b $1.3b 7.0 $35b sold to seller: luxoft holding...

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Starting soon…

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Tech M&A MonthlyStarts in 2 minutes

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www.corumgroup.com

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PAST ATTENDEES INCLUDE

5

Private Equity Panel

Buyers Panel

Top Acquirer Profiles: Google, Constellation

Valuation Strategy

Planning for Post-Acquisition Success

Special Reports: SaaS, Mobile, Gaming, France, Canada, Payments, Agtech, Security

PAST CONFERENCES & REPORTS

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Tech M&A MonthlyStarts in 1 minute

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Budapest

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Columbus

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8 Stages for anOptimal Outcome

IntegrationClosingDueDiligence

NegotiationDiscoveryContactResearchPreparation

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Seller delivers counter offer

Discovery process is complete

Seller presents valuation guidance

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TYPICAL NEGOTIATION FLOW

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Deal Disasters

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UPCOMING CONFERENCE SCHEDULE

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Apr. 17 Los Angeles

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90-minute industry update and overview of the M&A

process

Half-day tech M&A bootcamp – a deep dive on

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This event is being recorded European broadcast April 12, 11:00 AM Berlin time

Asia-Pacific broadcast April 12, 2PM Sydney time

On demand webcast will be available at www.corumgroup.com

LOGISTICS

Q1:2019Global Tech M&A ReportTech M&A MonthlyApril 11, 2019

Thoughts? Questions? Let us know!@CorumGroup

15

WELCOME

BRUCE MILNE, CEO, CORUM GROUP LTD.

▪ Founded or owned four software companies, including AMI, an Inc.500 firm rated by IDC as the fastest growing computer-relatedcompany in the world

▪ Advisory boards for Microsoft, IBM, DEC, Comdex and Apple

▪ Board member/founding investor in some of the most innovativefirms in their field, including Blue Coat, Bright Star and Sabaki

▪ Past advisor to two governors and a senator, a board member of theWashington Technology Center

▪ Founder of the WTIA, the nation’s most active regional technologytrade association

▪ Worked with the Canadian government to found SoftWorld

▪ One of the 200 most influential individuals in the IT community inEurope

▪ American juror for the recent Tornado 100 Awards given to Europe’stop technology firms

▪ Graduate with Distinction from Harvard Business School

16

MODERATOR

TANYA FROEHLICH, DIRECTOR, EUROPEAN OPERATIONS,CORUM GROUP Intl. S.á.r.l.

▪ 13 years Tech M&A experience

▪ Based in Zurich, Switzerland, works closely with the European team

▪ Oversees the European marketing efforts, corporate planning &strategy, recruitment and team integration.

▪ Prior to joining Corum, was the Export Sales Manager for a leadingAsian food and beverage manufacturing & exporting company based inThailand

▪ Led the sales team whilst managing key client accounts globally,coordinated international shipments and ensured that all orderscomplied to international food standards.

▪ Spent five years in hospitality management with MarriottInternational, US; was a member of their “Committee of Excellence”.

▪ Holds an MBA and speaks English, German and Thai.

17

Welcome

Field Report: European M&A Events

Field Report: WFS Seattle

Q1 2019 Tech M&A Research Report

Special Report: Succession Planning

Q&A

AGENDA

18

EUROPEAN M&A EVENTS

JON SCOTT, CHAIRMAN, CORUM GROUP Intl. S.á.r.l.

▪ Executive leader with 30+ years of expertise in serving hightechnology companies

▪ President and CEO of The PowerTech Group

▪ President and CEO of Microserv Technology Services

▪ President and COO of Traveling Software

▪ Vice president roles in sales, marketing and businessdevelopment for technology companies

▪ Background includes strong ability to successfully integratestrategies and tactics into well executed operating plans,building strong teams and achieving excellent results

▪ Holds a BA in business from San Francisco State University

19

EUROPEAN M&A EVENTS

20

SPECIAL REPORT: WFS SEATTLE

STEVE JONES, SENIOR VICE PRESIDENT, CORUM GROUP LTD.

25+ years of experience in high-tech industries

Founder CEO of Solera Networks

Co-Founder of Auction Trust Network sold to MediaForge

Board Member of several software companies

Expertise in infrastructure, security, mobile and wireless, media and entertainment, supply chain and embedded devices/systems (IoT)

21

SPECIAL REPORT: WFS SEATTLE

22

MARKET SPOTLIGHT WEBCASTS

Matt RungDirectorWorld Financial Symposiums

23

CORUM RESEARCH REPORT

Anna LebedievaAnalyst

Julian ValenciaMarketing Research Analyst

Artem MamaievSenior Analyst

Nina SeghatoleslamiVP, Client Services

Barbara MomboeufMarketing Assistant, EMEA

Andrei MinetsAnalyst

Andy HillRegional Director, Australia

24

-30%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Daily Percentage ChangeS&P TECH Dow Jones NASDAQ All-time high

USA Q1S&P Tech 21%NASDAQ 16%Dow Jones 11%

Europe Q1CAC 40 13%DAX 9%FTSE 100 8%

PUBLIC MARKETS 2018 - 2019

Asia Q1HANG SENG 12%

SSE Composite 24%

Nikkei 6%

25

0%

100%

200%

300%

400%

500%

600%

700% Daily Percentage ChangeNASDAQ S&P TECH Dow Jones

2009 2011 2013 2015 2017 2019

PUBLIC MARKETS:2009-PRESENT

2019

26

MarketTransactions

Q1:2019Q1:2018

810 832

Mega Deals 17 15

Largest Deal $17B $35B

PipelinePrivate Equity Platform Deals

99 105

VC-Backed Exits 175134

Attributes39%

Cross Border Transactions 39%

Start-Up Acquisitions 11%13%

18 yrs18 yrsAverage Life

of Target

Q1:2018 Q1:2019

Q1:2018 Q1:2019

CORUM INDEXTECH M&A

6%

31%

3%

112%

12%

27

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

28

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

SOLD TO

Seller: Luxoft Holding [Switzerland]Acquirer: DXC Technology [USA]Transaction Value: $2.0B (2.1x EV/Sales and 13.7x EV/EBITDA)- Outsourced software development services

29

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

SOLD TO

Seller: Careem [UAE]Acquirer: Uber Technologies [USA]Transaction Value: $3.1B- Ride-sharing mobile app

30

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

SOLD TO

Seller: Scout24 [Germany]Acquirer: Hellman & Friedman/The Blackstone Group [USA]Transaction Value: $6.4B- Real estate, automobile, dating and employment classifieds

31

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

SOLD TO

Seller: QuickBase [Welsh, Carson, Anderson & Stowe] [USA]Acquirer: Vista Equity Partners Management [USA]Transaction Value: $1.1B (8.8x EV/Sales and 20x EV/EBITDA)- Business application development SaaS

32

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

SOLD TO

Seller: eFront [Bridgepoint Capital] [France]Acquirer: BlackRock [USA]Transaction Value: $1.3B (9.3x EV/Sales)- Investment portfolio management software

33

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

SOLD TO

Seller: Worldpay [USA]Acquirer: Fidelity National Information Services [dba FIS] [USA]Transaction Value: $35B (10.9x EV/Sales and 16.9x EV/EBITDA)- Payment processing services

Dynasty Marketplace Dynasty Marketplace

34

2019 MEGA DEALS – YTD

Thoughts? Questions? Let us know!@CorumGroup

$2.0B $21B$6.4B $68B

$6.4B

$4.2B

$1.0BTelematics business

$3.7B

$3.4B

$22B

$11BPE consortium

CONSUMER VERTICALINTERNET HORIZONTALIT SERVICES

$4.6B

$2.0B

$1.5B

INFRASTRUCTURE

$7.8B

$3.1B

$1.0B

$6.8B

$1.3B

$7.0B $35B

35

3-YEAR MARKET VALUATION TRENDS

Horizontal Vertical Infrastructure

Consumer Internet IT Services

36

Horizontal Vertical

Consumer

Infrastructure

Internet IT Services

MARKET SECTORS

37

Public Valuation Multiples

HORIZONTALSOFTWARE MARKET

3.00 x

3.50 x

4.00 x

4.50 x

5.00 x

5.50 x

6.00 x

6.50 x

10.00 x

12.00 x

14.00 x

16.00 x

18.00 x

20.00 x

22.00 x

24.00 x

26.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 19.25 x 19.18 x 19.65 x 19.73 x 21.01 x 22.35 x 22.46 x 22.16 x 21.72 x 19.26 x 21.54 x 23.03 x 24.28 x

EV/S 4.51 x 4.57 x 4.75 x 4.75 x 5.03 x 5.28 x 5.32 x 5.32 x 4.95 x 4.73 x 5.27 x 5.49 x 5.36 x

38

Subsector Sales EBITDA Examples

Business Intelligence

4.31x 24.61x

Marketing 4.32x 19.72x

ERP 5.03x 18.48x

HumanResources

8.49x 39.77x

SCM 6.53x 31.15x

Payments 5.15x 25.78x

Other 3.86x 16.14x

HORIZONTALSOFTWARE VALUATIONS

39

Seller AcquirerSeller

CountryDeal

ValueMonth Description

USA - January Electronic bill presentment and payment solutions

USA - January Online payment-processing network

Germany - January Debt management SaaS

Argentina - January Payment technology software

United Kingdom

$280M February Cross-border payments processing software

USA $750M February Electronic bill presentment and payment solutions

USA - March Multi-currency cross-border payment application

France - March Mobile app for digitizing e-commerce processes

Germany - March Cashless payment terminals and digital merchant services

Payment Processing

HORIZONTALDEAL SPOTLIGHT

Assets

40

HORIZONTALDEAL SPOTLIGHT

Big Data

SOLD TO

SOLD TO

SOLD TO

Target: Infruid Labs [USA]Acquirer: Pegasystems [USA]- Business analytics and data visualization solutions

Target: Attunity [USA] Acquirer: Qlik [Thoma Bravo] [USA]Transaction Value: $560M (6.4x EV/Sales)-Big Data management software

Target: Centrifuge Systems [USA]Acquirer: Culmen International [USA]- Business intelligence software

41

HORIZONTALDEAL SPOTLIGHT

HR - Jobvite

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Seller: Jobvite [USA]Acquirer: K1 Investment Management [USA]Transaction Value: $200M (reportedly)- Online recruitment platform

Seller: Canvas Talent [USA]Acquirer: Jobvite [K1 Investment Management] [USA]- Text-based intelligent interviewing platform

Seller: RolePoint [USA]Acquirer: Jobvite [K1 Investment Management] [USA]- Employee referral software

Seller: Talemetry [Canada]Acquirer: Jobvite [K1 Investment Management] [USA]- Recruitment marketing platform

42

HORIZONTALDEAL SPOTLIGHT

HR

SOLD TO

SOLD TO

Seller: Abacus Labs [Italy]Acquirer: Zucchetti [Italy]- Diversified HR solutions

Seller: Scheduling+ [USA]Acquirer: GetSwift [Australia]- Cloud workforce scheduling and task management software

43

HORIZONTALDEAL SPOTLIGHT

Corporate Performance Management

SOLD TO

SOLD TO

Seller: OneStream Software [USA]Acquirer: KKR [USA]Transaction Value: $500M (reportedly)- Corporate performance management platform

Seller: BOARD International [Switzerland]Acquirer: Nordic Capital [Sweden]- Performance management and business intelligence application software

44

HORIZONTALDEAL SPOTLIGHT

PR, Social Media

SOLD TO

SOLD TO

Seller: TrendKite [USA]Acquirer: Cision [USA]Transaction Value: $225M (8.9x EV/Sales)- Public relations analytics software

Seller: Falcon.io [Denmark]Acquirer: Cision [USA]Transaction Value: $125.9M (4.7x EV/Sales)- Social media and customer experience management platform

45

HORIZONTALDEAL SPOTLIGHT

AI Retail – Composite Commerce

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Seller: Aspectiva [Israel]Acquirer: Walmart [USA]- AI-powered content analysis platform

Seller: Dynamic Yield [Israel]Acquirer: McDonalds [USA]Transaction Value: $300M (reportedly)- AI-powered personalization platform

Seller: Certona [USA]Acquirer: Kibo Software [Vista Equity] [USA]- Omnichannel personalization and revenue optimization platform

Seller: GrokStyle [USA]Acquirer: Facebook [USA]- AI and visual search software

46

HORIZONTALDEAL SPOTLIGHT

AI-based Semantics

SOLD TO

SOLD TO

Seller: Figure Eight [USA]Acquirer: Appen [Australia]Transaction Value: $175M- Training data AI-based platform

Seller: Leiki [Finland]Acquirer: DoubleVerify [Providence Equity Partners] [USA]- AI-enabled semantic segmentation and user profiling platform

47

HORIZONTALDEAL SPOTLIGHT

Speech Recognition

SOLD TO

SOLD TO

Seller: Vocalize.ai [USA]Acquirer: Sensory [USA]- AI-based speech recognition software tools

Seller: PullString [USA]Acquirer: Apple [USA]- AI-based voice recognition platform

48

HORIZONTALDEAL SPOTLIGHT

Chatbots

SOLD TO

SOLD TO

Seller: Assist Megacorp [USA]Acquirer: Conversocial [USA]- Messaging platform for businesses

Seller: CrunchBot [USA]Acquirer: [Qlik] [Thoma Bravo] [USA]- AI-powered data analyst chatbot

49

HORIZONTALDEAL SPOTLIGHT

RegTech

SOLD TO

SOLD TO

Seller: Visual Compliance [Canada]Acquirer: Descartes Systems Group [Canada]Transaction Value: $250M- Global trade compliance software

Seller: BWise [NASDAQ] [Netherlands]Acquirer: SAI Global [Australia]- Governance, risk and compliance (GRC) management software

50

VERTICALSOFTWARE MARKET

Public Valuation Multiples

3.00 x

3.50 x

4.00 x

4.50 x

5.00 x

5.50 x

10.00 x

12.00 x

14.00 x

16.00 x

18.00 x

20.00 x

22.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 18.31 x 19.29 x 20.25 x 20.62 x 20.46 x 20.48 x 19.93 x 18.05 x 18.95 x 18.79 x 19.76 x 20.44 x 21.45 x

EV/S 4.67 x 4.50 x 4.72 x 4.76 x 4.74 x 4.96 x 4.97 x 4.36 x 4.48 x 4.02 x 4.49 x 4.81 x 5.07 x

51

Subsector Sales EBITDA Examples

A/E/C 9.09x 33.99x

Automotive 4.36x 22.75x

Energy & Environment

2.31x 11.64x

FinancialServices

6.69x 21.85x

Government 1.95x 13.22x

Healthcare 2.72x 25.68x

Real Estate 4.77x 23.54x

Vertical Other 3.29x 15.62x

VERTICALSOFTWARE VALUATIONS

52

VERTICALDEAL SPOTLIGHT

Financial Services

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Target: PIEtech [USA]Acquirer: Envestnet [USA]Transaction Value: $500M- Financial planning software

Target: Innovizant [USA] Acquirer: R Systems Internation [India]Transaction Value: $4M- Business analytical software solutions

Target: List [Italy]Acquirer: TA Associates [USA]- Software solutions in mission critical sectors and risk management systems

Target: Abe AI [USA]Acquirer: Yodlee [Envestnet] [USA]- AI-enabled conversational platform for financial institutions

53

VERTICALDEAL SPOTLIGHT

Healthcare

Seller AcquirerSeller

LocationDeal

ValueMonth Description

USA, TX - January Inventory supply chain management applications and solutions

USA, AL - January CRM software solutions for hospitals

USA, CA - January Clinical laboratory operations and patient blood management

USA, WI - January Decision-making software

USA, CT - January Document management control software

USA, PA - January Web-based enterprise analytics platform

USA, TX February Electronic health records, virtual care and business intelligence solutions

Netherlands - February Healthcare analytical tool and software

India $10M March Patient-centric, digital health information management software

54

VERTICALDEAL SPOTLIGHT

Education

Seller AcquirerSeller

CountryAcquirer Country

Month Description

India Singapore January Cloud-based deep learning platform

USA USA February SaaS-based data analytics platform

Australia USA February Software for analyzing unstructured data

Australia USA March Web-based educational software solution

United Kingdom

Singapore March Curriculum mapping, assessment platform

USA USA March Web-based writing assessment toolkit

USA USA March Web-based applications for education

DataSense data integration assets

55

VERTICALDEAL SPOTLIGHT

Real Estate

SOLD TO

SOLD TO

SOLD TO

Target: Dynasty Marketplace [USA]Acquirer: AppFolio [USA]Transaction Value: $60M- AI based software for real estate

Target: BoldLeads.com [USA] Acquirer: Propertybase [Boston Logic Technology Partners [Providence Equity Partners]] [USA]-Online platform, which connect real estate's buyer and seller

Target: in4mo [USA]Acquirer: Solera Holdings [Vista Equity Partners] [USA]- Mobile multimedia reporting platform

56

CONSUMERSOFTWARE MARKET

Public Valuation Multiples

1.00 x

1.50 x

2.00 x

2.50 x

3.00 x

3.50 x

4.00 x

4.50 x

6.00 x

8.00 x

10.00 x

12.00 x

14.00 x

16.00 x

18.00 x

20.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 19.04 x 17.90 x 16.90 x 17.76 x 17.72 x 17.35 x 19.07 x 16.25 x 15.86 x 15.92 x 16.76 x 14.42 x 16.27 x

EV/S 4.04 x 3.56 x 3.30 x 3.21 x 3.08 x 3.12 x 3.22 x 2.84 x 2.89 x 3.05 x 3.22 x 3.08 x 3.14 x

57

Subsector Sales EBITDA Examples

Casual Gaming 3.01x 26.26x

Core Gaming 3.25x 14.28x

Other 3.89x N/A

CONSUMERSOFTWARE VALUATIONS

58

CONSUMERDEAL SPOTLIGHT

Video Gaming

SOLD TO

Seller: Warhorse Studios [Czech Republic]Acquirer: Koch Media [THQ Nordic] [Germany]Transaction Value: $48.37M (1.2x EV/EBITDA)- Action role-playing historic games

Seller: Flying Wild Hog [Poland]Acquirer: Supernova Capital [United Kingdom]- Video game developer & publisher

SOLD TO

Seller: 18POINT2 [Australia]Acquirer: Koch Media [THQ Nordic] [Germany]Transaction Value: $2.73M- Entertainment game products

SOLD TO

59

CONSUMERDEAL SPOTLIGHT

Gaming and Betting

SOLD TO

Seller: Dedsert [dba BetBright] [Ireland]Acquirer: 888 HoldingsTransaction Value: $19.8M- Mobile gaming platform

Seller: JPJ Group (online bingo assets) [United Kingdom]Acquirer: 888 HoldingsTransaction Value: $23.2M- Bingo online gaming

Seller: Adjarabet [City Loft] [Georgia]Acquirer: Paddy Power Betfair Transaction Value: $132.3M (1.7x EV/Sales and 5.2x EV/EBITDA)- Peer-to-peer betting platform

SOLD TO

SOLD TO

Online Bingo assets

60

CONSUMERDEAL SPOTLIGHT

Game Development

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Seller: Audiokinetic [Canada]Acquirer: Sony Corporation [Japan]- Audio software toolset for gaming industry

Seller: Allegorithmic [France]Acquirer: Adobe [USA]Transaction Value: $105M- AI-powered personalization platform

Seller: Graphine Software [Belgium]Acquirer: Unity Technologies [USA]- Texture streaming and compression middleware for gaming industry

Seller: Vivox [USA]Acquirer: Unity Technologies [USA]- Gaming voice-and-text chat technology

61

CONSUMERDEAL SPOTLIGHT

Spotify Acquisitions

SOLD TO

Seller: Gimlet Media [USA]Acquirer: Spotify [Sweden]Transaction Value: $230M- Digital media network platform

Seller: Anchor FM [USA]Acquirer: Spotify [Sweden]- Radio-based application

Seller: Parcast [USA]Acquirer: Spotify [Sweden]- Online storytelling podcast network

SOLD TO

SOLD TO

62

CONSUMERDEAL SPOTLIGHT

Apple

SOLD TO

Seller: Laserlike [USA]Acquirer: Apple [USA]

- Online content search engine platform

- Strengthens Apple’s position on artificial intelligence market

63

Public Valuation Multiples

INTERNETSOFTWARE MARKET

1.00 x

1.50 x

2.00 x

2.50 x

3.00 x

3.50 x

4.00 x

4.50 x

5.00 x

5.50 x

10.00 x

12.00 x

14.00 x

16.00 x

18.00 x

20.00 x

22.00 x

24.00 x

26.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 18.16 x 21.77 x 21.09 x 22.44 x 22.28 x 18.84 x 18.61 x 16.55 x 16.88 x 15.26 x 15.37 x 16.66 x 16.10 x

EV/S 4.84 x 4.37 x 4.26 x 4.11 x 4.09 x 4.58 x 4.47 x 3.85 x 3.71 x 3.36 x 3.69 x 3.51 x 3.57 x

64

Subsector Sales EBITDA Examples

Diversified Internet

3.89x 17.61x

eCommerce 0.63x 12.75x

Social Network 7.12x 14.89x

Travel & Leisure 5.57x 23.47x

INTERNETSOFTWARE VALUATIONS

65

INTERNETDEAL SPOTLIGHT

Food Delivery

SOLD TO

SOLD TO

Seller: Zomato (UAE-based food delivery business) [India]Acquirer: Delivery Hero [Germany]Transaction Value: $172M- Expands Middle East and North Africa business with 1.2m monthly orders

Seller: Veggie India [India]Acquirer: Milkbasket [India]- Grows customer base to over 100,000 households

66

INTERNETDEAL SPOTLIGHT

Travel & Leisure

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Seller: HotelTonight [USA]Acquirer: Airbnb [USA]- Last-minute hotel booking app

Seller: Pocket Concierge [Japan]Acquirer: American Express [USA]- AI-powered personalization platform

Seller: Yatra.com [India]Acquirer: Ebix [USA]Transaction revenue: $336M (2x EV/Sales)

- Online travel portal

Seller: LoungeBuddy [USA]Acquirer: American Express - Airport Lounge Access platform

67

INTERNETDEAL SPOTLIGHT

Urban Route Planning

SOLD TO

Seller: UbiGo Innovation [Sweden]Acquirer: Via ID [France]

- Swedish mobility-as-a-service provider

- Enables users to automate usage of public transport, taxi, car-

sharing, rental car, and bike-sharing

68

INFRASTRUCTURESOFTWARE MARKET

Public Valuation Multiples

2.00 x

2.50 x

3.00 x

3.50 x

4.00 x

4.50 x

5.00 x

5.50 x

6.00 x

8.00 x

10.00 x

12.00 x

14.00 x

16.00 x

18.00 x

20.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 15.90 x 16.39 x 17.13 x 16.92 x 17.06 x 17.75 x 17.67 x 17.75 x 16.45 x 15.27 x 18.14 x 19.39 x 19.39 x

EV/S 4.84 x 5.02 x 4.98 x 4.87 x 4.80 x 4.78 x 4.88 x 5.01 x 4.43 x 4.57 x 4.23 x 4.20 x 4.63 x

69

Subsector Sales EBITDA Examples

Application Lifecycle

7.37x 14.77x

Endpoint 3.42x 17.96x

IT Services Management

9.05x 35.80x

Network Management

4.39x 13.37x

Security 7.66x 44.20x

Storage& Hosting

3.52x 33.60x

Other 4.19x 11.90x

INFRASTRUCTURESOFTWARE VALUATIONS

70

Security

INFRASTRUCTUREDEAL SPOTLIGHT

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Seller: WhiteHat Security [USA]Acquirer: NTT Security [NTT Group] [Japan]- Risk management platform

Seller: ForceNock Security [Israel]Acquirer: Check Point Software Technologies [USA]- Autonomous web application security solution

Seller: BluVector [LLR Partners] [USA]Acquirer: Comcast [USA]- Cyber-threat detection and hunting platform

Seller: ProtectWise [USA]Acquirer: Verizon Communications [USA]- Enterprise network security platform

71

INFRASTRUCTUREDEAL SPOTLIGHT

Identity and Access Management

SOLD TO

SOLD TO

Seller: Inventia [Italy]Acquirer: CRIF [Italy]- Web-collaboration and online identification

Seller: Janrain [USA]Acquirer: Akamai Technologies [USA]Transaction Value: $125M (5x EV/Sales) - Customer identity and access management solutions

72

Network Performance Management

INFRASTRUCTUREDEAL SPOTLIGHT

SOLD TO

SOLD TO

SOLD TO

Seller: Mist Systems [USA]Acquirer: Juniper Networks [USA]Transaction Value: $405M- AI-driven wireless platform

Seller: Outlyer [USA]Acquirer: Bitrise [United Kingdom]- Cloud-based infrastructure monitoring platform

Seller: Singularity Networks [USA]Acquirer: Cisco Systems [USA]- Real-time network analytics platform

73

Cloud Integration

INFRASTRUCTUREDEAL SPOTLIGHT

SOLD TO

Seller: Azuqua [USA]Acquirer: Okta [USA]Transaction Value: $52.5M

- Cloud application integration SaaS

- Okta’s largest acquisition to date

74

Project and Portfolio Management

INFRASTRUCTUREDEAL SPOTLIGHT

SOLD TO

Seller: AgileCraft [USA]Acquirer: Atlassian [Australia]Transaction Value: $166M

- AI-enabled project and portfolio management SaaS

- Adds more value to Atlassian’s enterprise agile planning

75

IT SERVICESDEVELOPED MARKETS

Public Valuation Multiples

0.40 x

0.60 x

0.80 x

1.00 x

1.20 x

1.40 x

1.60 x

5.00 x

6.00 x

7.00 x

8.00 x

9.00 x

10.00 x

11.00 x

12.00 x

13.00 x

14.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 12.15 x 12.31 x 12.16 x 11.94 x 12.90 x 12.87 x 12.88 x 11.02 x 11.26 x 10.04 x 11.00 x 11.16 x 11.42 x

EV/S 1.34 x 1.38 x 1.32 x 1.18 x 1.31 x 1.34 x 1.32 x 1.22 x 1.19 x 1.04 x 1.12 x 1.20 x 1.32 x

76

IT SERVICESEMERGING MARKETS

Public Valuation Multiples

1.50 x

2.00 x

2.50 x

3.00 x

3.50 x

4.00 x

5.00 x

7.00 x

9.00 x

11.00 x

13.00 x

15.00 x

17.00 x

19.00 x

21.00 x

23.00 x

EV/SEV/EBITDA

Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19

EV/EBITDA 22.02 x 21.30 x 20.22 x 22.01 x 20.61 x 22.04 x 21.93 x 19.64 x 18.51 x 16.72 x 17.87 x 18.62 x 19.09 x

EV/S 3.20 x 3.22 x 3.27 x 3.44 x 3.61 x 3.70 x 3.66 x 3.26 x 3.36 x 3.23 x 3.66 x 3.58 x 3.71 x

77

IT SERVICESDEAL SPOTLIGHT

Focused Systems Integrators

SOLD TO

Seller: Converging Data [Australia] Acquirer: Deloitte Australia [Deloitte] [Australia]- Risk and cybersecurity consulting services for Splunk users

SOLD TO

Seller: Enterprise System Partners [Ireland]Acquirer: Accenture [Ireland]- Life sciences solutions and services

78

IT SERVICESDEAL SPOTLIGHT

Focused Systems Integrators

SOLD TO

SOLD TO

SOLD TO

Target: Ruletronics [United Kingdom]Acquirer: Larsen & Toubro Infotech [India]Transaction Value: $7.5M- Pega-based IT consulting services

Target: Zybertech [Canada] Acquirer: Hyphen Solutions [USA]- Sage value-added construction and real estate services

Target: NIELSEN + PARTNER [Germany]Acquirer: Larsen & Toubro Infotech [India]Transaction Value: $31.5M- IT consulting for retail banking and wealth management

79

IT SERVICESDEAL SPOTLIGHT

Microsoft Systems Integrators

Seller AcquirerSeller

CountryAcquirer Country

Month Description

Australia Australia January Microsoft Dynamics-based SI

United Kingdom

Ireland January Microsoft Gold Partner; systems integration and managed services

USA USA January Microsoft-based engineering services

Netherlands Netherlands January Microsoft Dynamics CRM-based solutions

USA USA January Microsoft Azure-based cloud migration & enablement

80

IT SERVICESDEAL SPOTLIGHT

AI Software Development

SOLD TO

SOLD TO

Seller: Peachtree AI [USA] Acquirer: Search Discovery [USA]- Consulting services in machine learning and artificial intelligence

Seller: Ividata Group [France]Acquirer: Keensight Capital/ ISAI Gestion [France]- Consulting services in data science, data privacy and artificial intelligence

81

IT SERVICESDEAL SPOTLIGHT

Government Services

SOLD TO

SOLD TO

SOLD TO

SOLD TO

Target: Applied Technology Group [USA] Acquirer: Applied Insight [Acacia Group] [USA]- Actionable intelligence to government customers

Target: Stratus Solutions [USA] Acquirer: Applied Insight [Acacia Group] [USA]- Cloud-at-scale solutions for governement

Target: LGS Innovations [Madison Dearborn Partners / CoVant] [USA]Acquirer: CACI International [USA]Transaction Value: $750M- Network services for government organizations

Target: OGSystems [General Catalyst Partners] [USA]Acquirer: Parsons Corp. [USA]- Geospatial intelligence and big data analytics services

82

CORUM RESEARCH REPORT

Anna LebedievaAnalyst

Julian ValenciaMarketing Research Analyst

Artem MamaievSenior Analyst

Nina SeghatoleslamiVP, Client Services

Barbara MomboefMarketing Assistant, EMEA

Andrei MinetsAnalyst

Andy HillRegional Director, Australia

83

Special Report: Succession Planning

84

PRESENTED BY

BRUCE MILNE, CEO, CORUM GROUP LTD.

▪ Founded or owned four software companies, including AMI, an Inc.500 firm rated by IDC as the fastest growing computer-relatedcompany in the world

▪ Advisory boards for Microsoft, IBM, DEC, Comdex and Apple

▪ Board member/founding investor in some of the most innovativefirms in their field, including Blue Coat, Bright Star and Sabaki

▪ Past advisor to two governors and a senator, a board member of theWashington Technology Center

▪ Founder of the WTIA, the nation’s most active regional technologytrade association

▪ Worked with the Canadian government to found SoftWorld

▪ One of the 200 most influential individuals in the IT community inEurope

▪ American juror for the recent Tornado 100 Awards given to Europe’stop technology firms

▪ Graduate with Distinction from Harvard Business School

85

What do you do when all of your wealth is

tied up in a technology company?

86

What is your succession plan?

87

SUCCESSION PLANNING

Traditional Succession Options

1. Family – Children take over

2. Employee Ownership – ESOP

3. Management Buyout – MBO

4. Merger Partner – M&A

88

“The boss is retiring. The kids don't want to take over…”

(Source: Chicago Tribune January 17, 2019)

SUCCESSION PLANNING

89

90

91

ESOPs & MBOs

Not used in tech:

- Valuations are too high

- Very complex to execute

- Bank financing unavailable

SUCCESSION PLANNING

92

Merger Partner

SUCCESSION PLANNING

- Strategic Buyer

- Financial Recapitalization

93

Record M&A Activity

- In Every Market

- Even Smaller Companies

- In All Geographies

SUCCESSION PLANNING

94

1995 2000 2005 2010 2015

M&A FOLLOWS CYCLES

95

(Source: CNN)

SUCCESSION PLANNING

96

18 Months After Crash

- 40% Drop in Valuation

- 50% of Buyers Leave

SUCCESSION PLANNING

97

SUCCESSION PLANNING

98

Congress discussing new tax proposals:

70% top tax rate 70% inheritance tax 2% tax on holdings

SUCCESSION PLANNING

99

What are you waiting for?

100

What is your succession plan?

101

Use Q&A chat box on your screen

Submit to queue at any time

Q&A

We welcome your questions!

102

UPCOMING CONFERENCE SCHEDULE

www.corumgroup.com/events

SELLING UP, SELLING OUT

Apr. 17 Los Angeles

Apr. 24 Kelowna, BC

Apr. 30 Columbus

May 14 Boston

May 22 St. Louis

MERGE BRIEFING

Apr. 12 Budapest

Apr. 16 Amsterdam

Apr. 18 Fort Worth

Apr. 24 Helsinki

Apr. 25 Minneapolis

Apr. 25 Salt Lake City

May 3 Phoenix

May 8 Albany

90-minute industry update and overview of the M&A

process

Half-day tech M&A bootcamp – a deep dive on

selling your company

103

After the Deal – Celebration

104

www.corumgroup.com