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Investment Banking AdvisorsCapstone Partners



Investment Banking Advisors 1

SaaS & CloudM&A and Valuation Update

Q1 2013

Capstone PartnersInvestment Banking Advisors

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Table of Contents

SectionIntroduction

Research Coverage: SaaS & Cloud Key Takeaways

M&A Activity & Multiples M&A Dollar Volume M&A Transaction Volume LTM Revenue Multiples Notable M&A Transactions Most Active Buyers

Public Company Valuation & Operating Metrics SaaS & Cloud 85 Public Company Universe Recent IPOs Stock Price Performance LTM Revenue, EBITDA & P/E Multiples Revenue, EBITDA and EPS Growth Margin Analysis Best / Worst Performers

Notable Transaction Profiles

Public Company Trading & Operating Metrics

Technology & Telecom Team

Page

45-6

89-11

12-1314

15-16

18-192021

22-2425-2728-2930-31

32-44

45-49

50-52

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Investment Banking Advisors 3WORLD CLASS WALL STREET EXPERTISE. BUILT FOR THE MIDDLE MARKET.TM


Observations andRecommendationsIntroduction

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Capstone’s Technology & Telecom Group focuses its research efforts on the following market segments:

Research Coverage: SaaS & Cloud

Analytics / Business Intelligence

Cloud & IT Infrastructure

Cloud Computing / Storage

Communication & Collaboration

Content Creation & Management

Content Delivery Services

CRM & Customer Service

ERP, Supply Chain & Commerce

Finance & Administration

Human Resources

Licensed Software Leaders

Marketing & Advertising

Vertical Markets

Mobile & Wireless Consumer InternetEnterprise SaaS & Cloud

E-Commerce Consumer, IT & Telecom Hardware

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Key Takeaways – M&A Activity & Multiples

M&A Dollar Volume in the Enterprise SaaS & Cloud market has surged from $8.6B in 2008 to $33.7B LTM M&A Dollar Volume weakened LTM vs. 2012 as fewer large deals were closed in Q1 2013 than the prior year quarter

M&A Transaction Volume has increased from 273 transactions in 2008 to 565 transactions LTM Transaction Volume weakened slightly for LTM versus 2012 due to a slow down in Q1 2013 Cloud & IT Management and Vertical Market segments accounted for nearly half of the deal volume

The Q1 drop off in M&A Activity was expected following the push to close deals in 2012 for tax considerations

The Median LTM Revenue Multiple paid for private company targets has come down from the 2010 high of 4.0x but remains healthy at 3.5x Hot companies and sectors can see double digit multiple exits but those are the exception with most companies

being acquired at much more reasonable multiples

The Median LTM Revenue Multiple paid for public company targets above $100M fell to 2.7x from a 2010 high of 4.4x Fewer high growth, pure-play public SaaS companies were acquired in the last twelve months than in 2010 and 2011

Notable M&A transactions in Q1

The most active buyers include Oracle, Google, IBM, VMware, Cisco, Citrix, Salesforce & Dell

Capstone expects M&A activity to remain robust in the Enterprise SaaS & Cloud market for the remainder of 2013 with revenue multiples remaining relatively stable

Fiserv / Open Solutions ($1.0B) AthenaHealth / Epocrates ($294M) ACI Worldwide / Online Resources ($272M) Allscripts / dbMotion ($235M) VMware / Virsto ($200M) Opera / Skyfire ($155M) Pattington / FFastFill ($126M) Tripwire / nCircle ($125M) Google / Channel Intelligence ($125M) FIS / mFoundry ($120M) Genesys / Angel.com ($110M) Twitter / Bluefin ($90M)

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Key Takeaways – Public Company Metrics

Marin Software went public in Q1 and has been added to the SaaS & Cloud 85 Universe The stock finished Q1 17% above its IPO price resulting in a solid LTM revenue multiple of approximately 8x

Median SaaS & Cloud 85 stock appreciation has consistently outperformed NASDAQ and was up 10.1% in Q1 The ERP, Supply Chain & Commerce segment led the way with a median gain of 27.7% in Q1while Licensed Software

Leaders gained only 3.6%

Median LTM Revenue Multiple of 4.3x marks a return to 5 year highs as the stock market continues to recover Medians range from a high of 7.4x for ERP, Supply Chain & Commerce to a low of 2.5 for Cloud Computing / Storage The two fastest growing companies, Workday and ServiceNow, trade at 34.6x and 18.3x revenue, respectively

Median LTM EBITDA multiples have been expanding gradually and currently stand at 13.5x Most segments trade above 12x EBITDA with ERP, Supply Chain & Commerce, CRM & Customer Service and Finance

& Administration trading at over 30x

Median LTM P/E multiples continue to climb, reaching 25.1x and approaching 5 year highs Nearly all segments trade at a median P/E above 20x

SaaS & Cloud 85 posted median revenue growth of 19.1% for LTM which is expected to slow to 17.4% for NTM Human Resources segment is expected to grow the fastest at a median rate of 37.1% while the Licensed Software

Leaders are expected to grow at a median rate of only 6.2%

SaaS & Cloud 85 posted median EBITDA growth of 15.5% for LTM with similar growth projected for NTM

Median gross margins have remained steady at 69% since the economic recovery began Cloud & IT Infrastructure segment leads with 85% gross margins while Cloud Computing / Storage lags at 61%

Median EBITDA margins have slipped slightly to 21.4% as companies are reinvesting in growth EBITDA margins vary widely from 40+% for mature companies to -30% for emerging companies focused on growth

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Observations andRecommendationsM&A Activity & Multiples

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LTM M&A Dollar Volume

M&A dollar volume has recovered from 2008 - 2009 lows, reaching $39B in ‘12 and $33.7B LTM Weaker LTM numbers reflect a drop in large transactions with just $2B in dollar volume from deals over $200M for

Q1’13 compared to $7.9B for Q1’12 However, dollar volume for deals under $200M has improved nearly 50% in Q1 ‘13 versus the prior year quarter,

jumping to $1.8B from $1.25B

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LTM M&A Transaction Volume by Segment

Transaction volume has also risen steadily, more than doubling from 273 deals in 2008 to 565 deals LTM The slight drop for LTM vs. 2012 is not surprising given the push to get deals done in 2012 for tax considerations

Vertical Market solutions and Cloud & IT Infrastructure constitute nearly half of all transactions

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LTM M&A Transaction Volume by Deal Size – Private Targets

Private company deal volume jumped significantly in 2012 and remains strong in Q1’13, though down slightly from prior year numbers As previously stated, the Q1 slowdown is not surprising following the 2012 year end rush

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LTM M&A Transaction Volume by Deal Size – Public Targets

Public transaction volume for 2011 to current is 50% higher than it was in 2008 with deals skewing towards larger dollar values $1B+ transaction activity has been strong for 2010 to current Deals over $250M represent half of the public deal volume since the start of 2011 with nearly 25% of deals over $1B

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Median LTM Revenue Multiples – Private Targets

The Median LTM Revenue Multiple paid for private company targets has come down from the 2010 high of 4.0x but remains healthy at 3.5x

Hot companies and sectors can see double digit multiple exits but those are the exception with most companies being acquired at much more reasonable multiples

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Median LTM Revenue Multiples – Public Targets

The Median LTM Revenue Multiple paid for public company targets above $100M fell to 2.7x from a 2010 high of 4.4x Fewer high growth, pure-play public SaaS companies were acquired in the last twelve months than in 2010 and 2011 With less than 25 public company target data points in a given year, the median multiple tends to be quite volatile

and is not necessarily indicative of M&A valuations in the broader market

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Notable M&A Transactions

*Deal Value includes a $105 million earn-out

AnnounceDate Buyer Target Segment Target Description Deal Value

LTM Rev Multiple

Mult on $ Invested

Premium to 1 Mo Prior

1/14/13Vertical Market -

Financial Services & Insurance

Offers financial institution management software globally providing CRM, BI, accounting, document management and payment processing.

$1,015M 2.5x 0.8x N/A

1/7/13 Vertical Market -Healthcare

Provides a mobile medical reference content application for use by physicians on iPhone, iPad, Android, BlackBerry, Windows Mobile and Palm mobile devices.

$294M 2.6x N/A 24.6%

1/31/13 ERP, Supply Chain & Commerce

Provides web-based transaction processing and marketing software for financial institutions, creditors and billers. $272M 1.5x N/A 69.6%

3/5/13 Vertical Market -Healthcare

Provides web-based electronic health records to healthcare organizations globally. $235M N/A 4.1x N/A

2/6/13 Cloud Enablement Software

Provides storage virtualization capacity and performance management software for use in enterprise virtual servers and desktop environments.

$200M N/A 8.3x N/A

2/15/13 Content Delivery Services

Provides flash-compatible mobile video traffic optimization software for use with mobile platforms. Software helps shrinks file sizes and speeds up video delivery to mobile devices.

$155M* 35.9x N/A N/A



Designs and delivers web-based electronic trade execution, ordering, clearing and risk management software for the electronic trading community.

$126M 4.8x N/A 41.6%

3/11/13 Vertical Market –Legal / Compliance

Provides network security vulnerability assessment and compliance auditing solutions. $125M 3.3x 2.3x N/A

2/16/13 Web AnalyticsProvides web-based e-commerce software that enables businesses to refer online shoppers to third-party retail websites for lead generation purposes.

$125M 4.5x N/A N/A



Provides a mobile financial services platform that enables banking, payments, commerce transactions, wallets and e-commerce through mobile phones.

$120M N/A 3.0x N/A

2/25/13 CRM & Customer Service

Offers cloud-based customer experience management solutions for businesses, government agencies and educational institutions.

$110M 3.8x N/A N/A

2/5/13 Analytics / Business Intelligence

A social TV analytics company, provides social media commentary analytics SaaS to brand advertisers, advertising agencies and TV networks and operators.

$90M N/A 4.4x N/A

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Most Active SaaS/Cloud Buyers – Last 2 Years

# of Deals SaaS/Cloud TransactionsCompany SaaS/Cloud Total Date Company Value Date Company Value

14 23

3/13/1312/19/1211/8/129/17/127/29/127/19/127/10/12

NimbulaEloquaInstantisSelectMindsXsigo SystemsSkireInvolver

N/A$956MN/AN/A$220MN/AN/A

6/5/125/23/123/29/122/8/12

10/23/1110/18/116/21/11

Collective IntellectVitrueClearTrialTaleoRightnow TechnologiesEndeca TechnologiesFatWire Corporation

N/A$325MN/A$1.9B$1.8B$1.1B$160M

11 42

3/15/132/6/13

11/28/129/7/12

7/31/126/5/12

Talaria TechnologiesChannel IntelligenceIncentive TargetingVirusTotalWildfire InteractiveQuickoffice

N/A$125MN/AN/A$250MN/A

6/4/1210/7/116/18/116/13/116/3/11

MeeboSocialGrappleSageTVAdmeldPostRank

$100MN/AN/A$400MN/A

11 19

2/1/1312/19/129/24/128/25/125/2/12

4/25/12

Star AnalyticsStoredIQButterfly Software KenexaTeaLeaf TechnologyVivisimo

N/AN/AN/A$1.4B$500MN/A

4/13/1212/7/11

10/11/1110/4/118/31/11

Varicent SoftwareDemandTecPlatform ComputingQ1 Labsi2 Limited

$172M$486M$300M$575MN/A

11 12

2/6/137/31/127/21/126/27/125/22/124/24/12

Virsto SoftwarePattern InsightNicira NetworksDynamicOpsWanovaCetas Software

$200MN/A$1.3B$125M$90MN/A

6/13/115/31/115/16/114/26/114/4/11

Digital Fuel TechnologiesEvent RobotShavlik TechnologiesSlideRocketMozy

$85MN/A$100M$35M$8M

9 17

1/29/1311/18/1211/15/1210/4/127/13/12

Cognitive SecurityMerakiCloupiavCiderVirtuata

N/A$1.2B$125MN/A$18M

5/3/123/25/12

10/19/118/19/11

TruvisoClearAccessBNI VideoTaskDock

$20MN/A$99MN/A

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Most Active SaaS/Cloud Buyers – Last 2 Years (Continued)

# of Deals SaaS/Cloud TransactionsCompany SaaS/Cloud Total Date Company Value Date Company Value

8 11

12/5/128/9/125/2/12

4/11/12

ZenpriseKnowlityVirtual ComputerPodio

$327MN/AN/AN/A

10/13/118/10/116/22/115/23/11

novel labsRingCube TechnologiesCloud.comKaviza

$56M$32M$164M$20M

8 11

2/6/137/9/12

6/25/125/31/12

EntropySoftGoInstantThinkfuseBuddy Media

N/A$70M$689M$745M

5/1/1212/13/119/20/118/26/11

Stypi2Catalyze AssistlyNavajo Systems

N/A$50M$55M$30M

5 81/15/13

12/20/123/5/12

NavigisCloudTriggerGlobalOne Group

N/AN/AN/A

7/3/115/27/11

WaveAdeptOmnetic

N/AN/A

5 1811/16/126/25/124/2/12

Gale TechnologiesQuest Software Wyse Technology

N/A$2.7B$1.1B

3/13/122/24/12

SonicWALLAppAssure Software

$1.25B$225M

5 123/21/133/18/131/23/12

Data LockMetroFaxOffsite Backup Solutions

$0.5MN/AN/A

10/26/117/11/11

C3 ComputersDataHaven

N/AN/A

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Observations andRecommendations

Public Company Valuation & Operating Metrics

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Enterprise SaaS & Cloud 85 Public Company Universe – Part 1

Analytics / Business Intelligence

Cloud & IT Infrastructure

Cloud Computing /Storage

Content Creation &Management

Content DeliveryServices

CRM &Customer Service

Communication &Collaboration

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Enterprise SaaS & Cloud 85 Public Company Universe – Part 2

ERP, Supply Chain &Commerce

Finance &Administration

Human Resources

Marketing &Advertising

Vertical Markets

Licensed SoftwareLeaders

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Recent IPOs

IPO DetailsOffering Date: 3/21/13Offering Price: $14.00Original Range: $11.00-$13.00

Business DescriptionMarin Software operates a cloud-based digital advertising management platform. Its Revenue Acquisition Management platform offers integrated digital advertising management solutions for search, display, social media and mobile advertising.

Investors$79.5M in venture capital from Amicus Capital; Benchmark Capital; CrossLink Capital; DAG Ventures; Focus Ventures; SAP Ventures; Temasek Holdings; Triangle Peak Partners; EchoVC Partners

Stock Performance thru End of Q1’13IPO Performance

Open: $19.00% Change to Offer: +35.7%

Close: $16.26% Change to Offer: +16.1%% Change to Open: -14.4%

Market Cap: $432.8MOffering Size: $105.0M% of Company: 24.3%

Financial MetricsLTM Revenue: $59.6MLTM EBITDA: $(22.6M)LTM Net Income: $(26.5M)

LTM Rev Growth: 64.9% Gross Margin: 58.4%EBITDA Margin: (37.9)%

3/31 $/share: $16.43% Change to Offer: +17.4%% Change to Open: -13.5%

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Median Stock Performance – SaaS & Cloud 85

Median SaaS & Cloud 85 stock appreciation has consistently outperformed the NASDAQ Q1 saw a strong market, lifting SaaS & Cloud 85 by a median of 10.1%

Several segments posted double digit median gains over the past quarter with ERP, Supply Chain & Commerce and Vertical Market segments posting over 20% growth Licensed Software Leaders, in contrast, posted a median gain of only 3.6% for the quarter

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Median LTM Revenue Multiples – SaaS & Cloud 85

Median LTM Revenue Multiple of 4.3x matches the five year high as the market recovery continues Within SaaS & Cloud, median multiples vary considerably between segments

ERP, Supply Chain & Commerce, Cloud & IT Infrastructure and CRM & Customer Service command 6x+ median multiples

Licensed Software Leaders trail SaaS-based providers at just 3.1x Cloud Computing/Storage also lags at just 2.5x

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Median LTM EBITDA Multiples – SaaS & Cloud 85

Median EBITDA multiples have been expanding gradually and currently stand at 13.5x The vast majority of SaaS & Cloud segments are trading at medians above 12x LTM EBITDA

ERP, Supply Chain & Commerce, CRM & Customer Service and Finance & Administration trade at over 30x The premium multiples for SaaS companies versus Licensed Software Leaders illustrates the higher expected growth

rates and the market’s preference for the more stable, predictable business model

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Median LTM P/E Multiples – SaaS & Cloud 85

Median P/E multiples continue to climb, reaching 25.1x and approaching five year highs P/E multiples rose in 2009 and 2010 amid investor confidence in an economic recovery, then fell during 2011 as

companies achieved expected improvements in profitability

Nearly all segments trade at over 20x Investors are willing to pay a high multiple for well-positioned SaaS vendors on the belief that continued growth in

recurring revenue will drive strong, stable profits in future years

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Median Revenue Growth – SaaS & Cloud 85

SaaS & Cloud 85 posted median revenue growth of 19.1% for LTM which is expected to slow to 17.4% for NTM The slow down in growth is driven more by improved prior year numbers than by weakening sales

High growth rates are more difficult to maintain with a SaaS-based model as greater scale is achieved

Only Licensed Software Leaders project single digit growth, signaling customer preference for SaaS-based solutions

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Median EBITDA Growth – SaaS & Cloud 85

Median EBITDA growth has rebounded to 15.5% following a drop off in 2012 Solid median EBITDA growth of over 15% is expected moving forward as revenue growth hits the bottom line

EBITDA growth drop from 2011 high is more related to stronger prior period performance and increased OpExspend than a weakening in total profit dollars

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Median EPS Growth – SaaS & Cloud 85

Median EPS growth is projected to drop slightly from 12.8% for LTM to 10.7% for NTM Improved prior period profits coupled with a return to investment in growth after several years of cost cutting results in

softer projected EPS growth

Analytics / Business Intelligence median dragged down by Adobe and Bazaarvoice expecting 25%+ drops Marketing & Advertising companies are expected to invest heavily in opex to maintain revenue growth

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Median Gross Margin Trends – SaaS & Cloud 85

Median gross margins have remained steady at 69% following the economic recovery Cloud & IT Infrastructure tops the list at 85% as newly emerging technologies that enable the cloud to run more

efficiently command strong margins The more commoditized Cloud Computing/Storage segment lags behind at 61% as vendors price more

aggressively to win scale

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Median EBITDA Margin Trends – SaaS & Cloud 85

Median EBITDA margins have slipped slightly to 21.4% from their peak in 2011 as companies have shifted from aggressive cost cutting modes back into a focus on growth through investment in the business

Many companies in emerging segments such as ERP, Supply Chain & Commerce, CRM & Customer Service and Human Resources are early in the process of achieving scale and profitability

Segments with larger, mature companies like Cloud Computing / Storage already have operating leverage

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Best & Worst Performers – SaaS & Cloud 85

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Best & Worst Performers – SaaS & Cloud 85 (Continued)

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NotableTransactionProfiles

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Deal Rationale/Commentary

Open Solutions, founded in 1992, provides specific productsand services for the financial services industry. Their well-known DNA platform provides its clients (credit unions) areal-time open technology account processing platformwhich had revolutionary features at the time of its creation,such as the DNAcreator and DNAappstore. The idea ofopen sourced core platform for third-party add-onsoriginated from Open Solutions’ product.

Fiserv is a leading provider of financial services technologysolutions internationally. The acquisition of Open Solutionswas critical in order to gain industry dominance in the creditunion technology space. Fiserv will be able to add onseveral new technologies including the DNA platform andCUnify (for smaller credit unions).

The relatively large debt load for Open Solutions preventedthem from investing capital to further advance itstechnology for its DNA platform, leading to its sale to Fiserv.The purchase was made with $55 million in cash along with$960 million in assumed debt.

Acquiror Target

Deal SummaryDate: 1/14/2013Transaction Value: $1,015M% Sought: 100%Consideration: Cash

Valuation MetricsLTM Revenue Multiple: 2.5xLTM P/E Multiple: N/AMultiple on $ Invested: 0.8x

InvestorsPamlico Capital; Providence Equity Partners; The Carlyle Group

M&A Transaction Spotlight

Note: Transaction Value calculated as consideration paid to holders of stock and stock equivalents plus assumed debt.

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Epocrates provides subscriptions for mobile drug referencetools and electronic health records to healthcareprofessionals as well as interactive services to the healthcareindustry.

Athenahealth provides ongoing billing, clinical-related, andother related services to medical group practices, and itsstrategic acquisition of Epocrates offers a widely recognizedmobile platform in use by more than 338,000 physicians inthe U.S. The purchase will enable Athenahealth to expandits product offering for software used to prescribe drugs,maintain patient records and bolster brand recognition.Epocrates will continue to run as a separate division ofAthenahealth.

Epocrates’ revenue is estimated around $110 million for 2012.The transaction comprised $294 million in cash, $11.75 pershare, representing a 22% premium over Epocrates’ shareprice at the time of announcement.

Deal SummaryDate: 1/7/2013Transaction Value: $294M% Sought: 100%Consideration: Cash

Valuation MetricsLTM Revenue Multiple: 2.6xLTM P/E Multiple: 51.1xPremium versus:

1 day prior: 22.1%1 week prior: 33.2%1 month prior: 24.6%

Note: LTM and Premium as of last quarter prior to transaction announcement date.

Acquiror Target


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Online Resources Corporation provides web and phone-based financial services, full service bill pay solutions andmarketing services to various financial institutions. Among its1000+ financial institutions and billers as its clients, 450 werecredit unions.

ACI Worldwide is an international provider of electronicpayment systems. The company’s suite of products consistsof online banking and cash management solutions, whichare provided online or through mobile channels. Theacquisition of Online Resources aligns its electronic billpresentment and payment solutions with its already robustuniversal payments portfolio.

ACI’s acquisition of Online Resources comes just weeks afterprincipal competitor FIS’ announcement of its intention topurchase core systems vendor Open Solutions. With OnlineResources’ stock having fallen more than 22% over thepreceding twelve months, the transaction considerationrepresents an 83% premium over Online Resources’ shareprice at the time of announcement, totaling approximately$272 million in cash.

Deal SummaryDate: 1/31/2013Transaction Value: $272M% Sought: 100%Consideration: Cash

Valuation MetricsLTM Revenue Multiple: 1.5xLTM P/E Multiple: 15.2xPremium versus:



Acquiror Target


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dbMotion provides a healthcare information-sharing systemwhich allows medical staff a secured access to patients’medical records on its network. They provide productsranging from web-based portals displaying patient recordsto collaborative solutions allowing doctors and staffs tomanage and review patient statuses. Their technologysolution is used in 370 hospitals and 2,800 clinics globally.

Allscripts is also in the healthcare information-sharingsoftware segment, and its strategic acquisition of dbMotionprovides improved health-management services includingacute, ambulatory and home care systems. Allscriptsintegrates heterogeneous systems in use by many of thelarge healthcare organizations.

The transaction comprised $145 million in cash, $50 million instock and a $40 million cash note due in 18 months.

Date: 3/5/2013Transaction Value: $235M% Sought: 100%Consideration: Cash, stock, seller note

LTM Revenue Multiple: 9.4xLTM P/E Multiple: N/AMultiple on $ Invested: 4.1x

Gemini Israel Funds; Pitango Venture Capital; Vertex Venture Capital


Deal Summary

Valuation Metrics

Investors

Acquiror Target


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Virsto Software Corporation is provides storage performanceoptimization software. Virsto’s solution allows for a more cost-effective and efficient method for storage on virtual serversas well as desktops. The Virsto Storage Hypervisor addressesthe performance, capacity, and agility challenges ofcontemporary storage systems and builds a completesoftware-defined data center.

VMware, a subsidiary of EMC, provides cloud andvirtualization software and services. Earlier this year, VMwarereported a shift in its business strategy to refocus its efforts oninfrastructure. With the acquisition of Virsto Software,VMware will bolster its storage technology portfolioconsisting of VMware vSphere and vSphere StorageAppliance. VMware has announced that it will continue tooffer Virsto’s software and support its existing customers.

Virsto had raised $24 million in venture capital, likelyproviding an impressive return for its investors.

Date: 2/6/2013Transaction Value: $200M% Sought: 100%Consideration: Unknown


August Capital; Canaan Partners; InterWest Partners LLC; Southern Cross Venture Partners; Correlation Ventures


Deal Summary

Valuation Metrics

Investors

Acquiror Target


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Skyfire Labs develops a compression-as-a-service based mobile video optimization solution for wireless operators and consumers. Skyfire's Rocket Optimizer is a robust mobile video optimization solution that solves unpredictable video and data demand with an elastic, cloud-based optimization platform. Rocket Optimizer provides wireless operators with a substantial boost in bandwidth capacity across their networks. Skyfire Horizon is a white label mobile browser extension for operators to provide integrated promotions and advertising to their customers.

Opera Software develops web browsers for desktops and mobile devices. Its acquisition of Skyfire Labs will enhance its Operator Solutions portfolio which provides numerous mobile web optimization solutions. Opera also provides cloud-based mobile services and solutions to various operators, publishers, and advertisers. Skyfire will remain an independent entity as a wholly-owned subsidiary of Opera; Skyfire’s will continue to provide a branded consumer browser offering on Android and iOS.

The transaction value of $155 million consists of $38 million in cash, $12 million in stock and an earn-out potential of up to $105 million payable for the subsequent 3 years.

Date: 2/14/2013Transaction Value: $155M% Sought: 100%Consideration: Cash, stock, earn-out


Matrix Partners; Trinity Ventures; Lightspeed Venture Partners; Verizon Ventures; Panorama Capital


Deal Summary

Valuation Metrics

Investors

Acquiror Target


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FFastFill provides application services for the financialservices industry. Its leading SaaS product for the globalderivatives community offers front, middle, back and riskmanagement and is supported by over 80 financialinstitutions globally.

Pattington Ltd. a subsidiary of ION Trading, provides financialservices and electronic trading solutions. The takeover ofFFastFill will provide the already diverse product offering acompetitive edge against other industry players.

Pattington’s takeover offer of 4.8 times FFastFill’s revenueallowed the company to deliver on its objective of creatingrenown SaaS products within the derivatives space. With apremium of 41.6% over FFastFill’s 1-month prior stock pricerepresents a lucrative deal for FFastFill’s shareholders.

Deal SummaryDate: 2/15/2013Transaction Value: $126M% Sought: 76.7%Consideration: Cash

Valuation MetricsLTM Revenue Multiple: 4.8xLTM P/E Multiple: NMPremium versus:


Acquiror Target



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nCircle offers cloud-based vulnerability/security andcompliance solutions to organizations worldwide. Thecompany’s products deliver unique features such as securityand compliance scorecards to measure and compare theorganization’s performance and internal goals. The ease ofaccess for using cloud-based services allowed the companyto become a prominent player in the SaaS security space.

Tripwire also operates in the security software andcompliance space. With more than a decade ofestablished value as a security company, Tripwire boastsnearly half of the Fortune 500 companies as its clients.

The combination of these two companies is a watershedmove for the security industry, with Tripwire poised tobecome a major competitor of McAfee and Symantec. Thetransaction reflects a 3.3x multiple of trailing revenue, anabove-market valuation in the security and complianceindustry vertical.



Alta; JK&B; Menlo; e.ventures; Guide Court Square; Visa Marketplace; Industry Ventures; Sands; Mill. Hanson; Tall Oaks; Scotiabank; RK; Horizon Technology; NTT; Velocity; Grove


Deal Summary

Valuation Metrics

Investors

Acquiror Target


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Channel Intelligence, originally a part of the ICG Group,offers marketing and online shopping analytics, primarilyfocused around improved sales and insight for retailers andcompanies. Channel Intelligence analyzes nearly 15% of allonline transactions and accounts for nearly $2 billion inannual sales in referred online recommendations.

Google’s acquisition of Channel Intelligence is most likely toimprove its Google Shopping search service, a relativelynew service implemented mid-2012. Channel Intelligencewill allow for a broader range of features benefitting thesearch service as well as the online retailers who are usingGoogle Shopping. The acquisition reflects a move toincrease functionality and compete at a higher level againste-commerce incumbents, Amazon and eBay.

Although specific terms of the transaction were notdisclosed, it is estimated that ICG realized approximately$60.5M from the sale.


LTM Revenue Multiple: 4.5xLTM P/E Multiple: N/AMultiple on $ Invested: N/A

Aweida; ICG Group; MentorTech Ventures; New South Ventures


Deal Summary

Valuation Metrics

Investors

Acquiror Target


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mFoundry delivers mobile banking and payments servicesthrough a SaaS delivery model to more than 850 clients,making them the largest provider in North America.mFoundry’s hosted services for its mobile banking platformhas best-in-class features and ease of use and a simplisticuser interface.

Fidelity National Information Services (FIS) is the world’slargest provider for banking and payments; its acquisition ofmFoundry shows its desire to further expand into the mobilefield. With FIS’ continual endeavor in innovation andenhancements, mFoundry’s popular platform will play a keyrole in it’s technological advancement for its mobile bankingand payment services.

Since FIS already had a 22% stake in mFoundry, theconsideration of $120M for the remaining 78% putsmFoundry’s total valuation around $165M.

Date: 1/31/2013Transaction Value: $120M% Sought: 78% (Already held 22%)Consideration: Unknown

LTM Revenue Multiple: N/ALTM P/E Multiple: N/AMultiple on $ Invested: 3.0x

Apax Partners; GRP Partners; Ignition Partners; PayPal; NCR Corp.; Intel Capital; Mastercard; Banc of America; FIS Group; Motorola Mobility


Deal Summary

Valuation Metrics

Investors

Acquiror Target


43Capstone Partners






Angel.com is a provider of cloud-based CustomerExperience Management (CEM) solutions for InteractiveVoice Response (IVR) and Contact Centers. Their SaaSplatform allows their clients to achieve a higher level ofcustomer satisfaction through its diverse offering of plug-and-play apps. Angel’s platform allows for a quickdeployment of self-service IVR, SMS, chat, and mobileapplications to support customer needs.

Genesys is a leading provider of customer service andcontact center solutions as well. Genesys offers apersonalized self-service contact center for its customers,thus the acquisition of Angel will allow Genesys to furtherexpand its offering to enterprise and mid-market clients.

With Genesys’ acquisition of Angel, its expansion of thecloud contact center business unit is estimated to have arecurring revenue exceeding $85M annually. The dealdemonstrates the evolving contact center software market,which is transitioning to cloud-hosted solutions at anaccelerated pace and will force legacy incumbents (Cisco,Avaya) to innovate or acquire.

Date: 2/25/2013Transaction Value: $110M% Sought: 78.0%Consideration: Cash

LTM Revenue Multiple: 3.8xLTM P/E Multiple: N/AMultiple on $ Invested: N/A

Apax Partners; GRP Partners; Ignition Partners; PayPal; NCR; Intel Capital; Mastercard; Banc of America Strategic Investments; FIS; Motorola Mobility Holdings; Motorola Mobility Ventures


Deal Summary

Valuation Metrics

Investors

Acquiror Target


44Capstone Partners






Bluefin Labs is a social TV analytics company providing avariety of solutions for audience research, TV ad sales, andperformance management of ad campaigns. It provides itssolutions to brand advertisers, advertising agencies, and TVnetworks and operators. Bluefin Signals, a web-based socialTV analytics platform, provides insights and data onaudience search and is used by many media planners andbuyers.

Twitter’s foray into the social TV market has been a nearinevitability. For the 2013 Super Bowl alone, there were 24.1million tweets; Twitter’s integration of social TV analytics willbe crucial for ad campaigns to effectively manage andoptimize their performance. The acquisition of Bluefin Labs isthe largest in terms of transaction size since their founding in2008.

Bluefin Labs had raised $20.4M at the time of its acquisition,implying a respectable return for its investors.


LTM Revenue Multiple: N/ALTM P/E Multiple: N/AMultiple on $ Invested: 4.4x

Redpoint Ventures; Time Warner Investments; SoftBank Capital; Acadia Woods Partners; KephaPartners; Lerer Ventures


Deal Summary

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Investors

Acquiror Target


45Capstone Partners







Public Company Trading & Operating Metrics

46Capstone Partners





Trading & Operating Metrics

*Sorted alphabetically within market segment

($ in millions, except per share data)$ / Share M arket Enterprise % C hange Ent. Value/ R ev. Ent . Value/ EB IT D A P rice/ EP S N T M / LT M Gro wth LT M M argin

C o mpany N ame 3/ 31/ 13 C ap Value C ash D ebt LT M LQ LT M N T M LT M N T M LT M N T M R evenue EB IT D A EP S Gro ss EB IT D A N et

SaaS & C lo ud 85 M ean 19,493 18,675 3,019 2,202 13.7 % 11.7 % 5.8 x 4.7 x 19.8 x 16.9 x 38.8 x 29.6 x 18.4% 20.3% 15.1% 69.5 % 19.6 % 8.8 %SaaS & C lo ud 85 M edian 1,265 1,250 118 10 12.9 % 10.1 % 4.3 x 3.6 x 13.5 x 12.4 x 25.1 x 21.6 x 17.4% 15.7% 10.7% 69.1 % 21.4 % 10.4 %

A nalyt ics / B usiness Inte lligenceAdobe 43.52 21,842 19,712 3,661 1,531 26.8 % 15.5 % 4.5 x 4.7 x 12.3 x 16.6 x 20.3 x 29.1 x (4.0)% (26.1)% (30.2)% 87.8 % 36.8 % 24.7 %Bazaarvoice 7.32 533 427 105 0 (63.2)% (21.7)% 2.9 x 2.3 x NA NA NA NA 23.3% (5.9)% (25.5)% 65.4 % (10.6)% (11.9)%comScore 16.78 599 552 62 14 (21.6)% 21.8 % 2.2 x 2.0 x 12.4 x 11.1 x 21.0 x 20.7 x 9.2% 12.1% 1.2% 66.2 % 17.4 % 10.4 %Google 794.19 261,815 220,937 48,088 7,210 23.9 % 12.3 % 4.4 x 3.6 x 11.7 x 10.0 x 19.9 x 17.4 x 21.7% 16.7% 14.5% 59.1 % 37.7 % 26.4 %Splunk 40.03 3,948 3,642 306 0 NA 37.9 % 18.3 x 13.5 x NA NA NA NA 35.7% NA NA 89.2 % 1.5 % (1.2)%

M ean 57,747 49,054 10,444 1,751 (8 .5)% 13.2 % 6.5 x 5.2 x 12.1 x 12.6 x 20.4 x 22.4 x 17.2% (0.8)% (10.0)% 73.6 % 16.6 % 9.7 %M edian 3,948 3,642 306 14 1.1 % 15.5 % 4.4 x 3.6 x 12.3 x 11.1 x 20.3 x 20.7 x 21.7% 3.1% (12.1)% 66.2 % 17.4 % 10.4 %

C lo ud & IT InfrastructureCitrix 72.15 13,466 12,537 929 0 (8.6)% 10.0 % 4.8 x 4.2 x 16.6 x 13.5 x 25.1 x 23.0 x 14.9% 22.5% 8.9% 87.5 % 29.2 % 21.1 %LogMeIn 19.22 477 265 212 0 (45.4)% (14.2)% 1.9 x 1.7 x 7.9 x 9.6 x 26.3 x 41.8 x 11.7% (17.9)% (37.0)% 89.6 % 24.3 % 13.3 %Proofpoint 16.86 557 475 87 4 NA 37.0 % 4.5 x 3.7 x NA NA NA NA 19.4% NA (21.0)% 68.8 % (4.4)% (7.5)%Qualys 12.34 389 273 118 2 NA (16.6)% 3.0 x 2.5 x 24.2 x 16.6 x NA 68.4 x 17.5% 46.0% NA 79.9 % 12.3 % 1.5 %Red Hat 50.56 9,768 8,888 879 0 (15.6)% (4.5)% 6.7 x 5.8 x 23.9 x 20.5 x 41.1 x 37.7 x 15.0% 16.3% 8.9% 84.9 % 28.0 % 18.1 %ServiceNow 36.20 4,775 4,460 315 0 NA 20.5 % 18.3 x 11.4 x NA NA NA NA 60.2% NA NA 58.0 % 0.3 % (4.3)%SolarWinds 59.10 4,431 4,202 229 0 52.9 % 12.7 % 15.6 x 12.5 x 29.2 x 22.4 x 43.5 x 37.2 x 25.0% 30.5% 16.9% 93.2 % 53.5 % 38.4 %Splunk 40.03 3,948 3,642 306 0 NA 37.9 % 18.3 x 13.5 x NA NA NA NA 35.7% NA NA 89.2 % 1.5 % (1.2)%VMw are 78.88 33,788 29,607 4,631 450 (29.8)% (16.2)% 6.4 x 5.7 x 16.9 x 14.6 x 27.7 x 24.5 x 13.3% 15.2% 13.0% 84.3 % 38.1 % 26.9 %WANdisco 12.19 261 239 22 0 NA 70.4 % 49.0 x 33.3 x NA NA NA NA 47.2% (88.5)% 68.5% 95.5 % (29.6)% (103.4)%Websense 15.00 548 554 65 70 (28.9)% (0.3)% 1.5 x 1.6 x 6.4 x 12.8 x 10.3 x 17.2 x (1.6)% (49.8)% (40.3)% 83.6 % 23.8 % 15.2 %

M ean 6,583 5,922 708 48 (12.6)% 12.4 % 11.8 x 8.7 x 17.9 x 15.7 x 29.0 x 35.7 x 23.5% (3.2)% 2.2% 83.1 % 16.1 % 1.6 %M edian 3,948 3,642 229 0 (22.2)% 10.0 % 6.4 x 5.7 x 16.9 x 14.6 x 27.0 x 37.2 x 17.5% 15.8% 8.9% 84.9 % 23.8 % 13.3 %

C lo ud C o mputing / Sto rageAmazon 266.49 121,133 114,070 11,448 4,385 31.6 % 6.2 % 1.9 x 1.5 x NA NA NA NA 23.8% 47.7% NA 24.8 % 5.4 % 0.3 %CenturyLink 35.13 21,985 42,379 211 20,605 (9.1)% (10.2)% 2.3 x 2.3 x 5.5 x 5.7 x 13.2 x 13.2 x (1.2)% (3.1)% (0.1)% 61.0 % 41.7 % 9.0 %Google 794.19 261,815 220,937 48,088 7,210 23.9 % 12.3 % 4.4 x 3.6 x 11.7 x 10.0 x 19.9 x 17.4 x 21.7% 16.7% 14.5% 59.1 % 37.7 % 26.4 %IBM 213.30 237,725 259,818 11,176 33,269 2.2 % 11.4 % 2.5 x 2.4 x 9.5 x 9.0 x 13.9 x 12.7 x 1.7% 5.7% 9.6% 48.1 % 26.2 % 16.9 %Microsoft 28.61 239,602 185,722 68,098 14,218 (11.3)% 7.1 % 2.5 x 2.2 x 6.3 x 5.3 x 10.9 x 9.3 x 16.3% 19.2% 17.3% 75.4 % 40.7 % 30.5 %Oracle 32.33 152,296 138,641 33,407 19,752 10.9 % (3.0)% 3.7 x 3.6 x 6.8 x 7.2 x 12.2 x 11.3 x 4.4% (6.2)% 8.1% 80.4 % 55.2 % 34.9 %Rackspace 50.48 6,965 6,799 292 125 (12.6)% (32.0)% 5.2 x 4.3 x 14.6 x 12.1 x 67.3 x 50.1 x 21.9% 21.3% 34.4% 71.9 % 35.5 % 8.1 %salesforce.com 44.71 26,189 25,969 868 648 15.7 % 6.4 % 8.5 x 6.7 x 51.3 x 38.7 x 109.7 x 88.8 x 26.8% 32.5% 23.5% 77.6 % 16.6 % 7.5 %Verizon 49.15 140,484 188,901 3,570 51,987 28.6 % 13.6 % 1.6 x 1.6 x 5.1 x 4.6 x 21.8 x 17.8 x 4.2% 11.1% 23.0% 60.1 % 32.0 % 5.6 %

M ean 134,244 131,471 19,684 16,911 8.9 % 1.3 % 3.6 x 3 .1 x 13.8 x 11.6 x 33.6 x 27.6 x 13.3% 16.1% 16.3% 62.0 % 32.3 % 15.5 %M edian 140,484 138,641 11,176 14,218 10.9 % 6.4 % 2.5 x 2.4 x 8 .1 x 8.1 x 16.9 x 15.3 x 16.3% 16.7% 15.9% 61.0 % 35.5 % 9.0 %

47Capstone Partners





Trading & Operating Metrics (Continued)




C o mmunicat io n & C o llabo rat io n8x8 6.85 492 446 47 0 63.1 % (7.2)% 4.3 x 3.7 x 31.1 x 19.9 x 36.1 x 26.6 x 17.5% 56.6% 35.5% 67.8 % 13.9 % 13.7 %Cisco 20.90 111,412 81,327 46,376 16,291 (1.2)% 6.3 % 1.7 x 1.6 x 5.1 x 5.2 x 10.8 x 10.3 x 5.7% (1.1)% 4.6% 61.0 % 33.6 % 22.1 %Citrix 72.15 13,466 12,537 929 0 (8.6)% 10.0 % 4.8 x 4.2 x 16.6 x 13.5 x 25.1 x 23.0 x 14.9% 22.5% 8.9% 87.5 % 29.2 % 21.1 %CounterPath 2.02 84 72 13 0 (26.9)% 0.4 % 4.6 x 3.6 x NA 38.2 x NA 35.1 x 28.7% 276.8% NA 84.8 % (6.8)% (4.4)%Cybozu 266.57 141 101 39 0 (23.5)% (6.3)% 1.9 x NA 10.1 x NA 38.8 x NA NA NA NA 92.0 % 19.2 % 5.9 %Interactive Intel. 44.35 880 811 69 0 45.4 % 32.2 % 3.4 x 2.8 x 42.1 x NA NA NA 20.6% (3.8)% NA 66.5 % 8.1 % 4.2 %IntraLinks 6.36 349 350 75 76 20.2 % 3.1 % 1.6 x 1.6 x 9.4 x 9.9 x 39.8 x NA 1.6% (5.1)% NA 71.2 % 17.2 % 4.0 %j2 Global 39.21 1,802 1,724 324 245 36.7 % 28.1 % 4.6 x 3.4 x 8.8 x 7.7 x 14.6 x 14.1 x 37.0% 14.0% 3.1% 82.0 % 52.6 % 33.2 %Jive Softw are 15.20 1,000 866 145 11 (44.0)% 4.6 % 7.6 x 5.7 x NA NA NA NA 33.7% (55.1)% (29.9)% 60.5 % (14.8)% (23.7)%LivePerson 13.58 758 655 103 0 (19.0)% 3.3 % 4.2 x 3.6 x 20.8 x 20.1 x 41.2 x 41.8 x 16.8% 3.4% (1.5)% 77.4 % 20.0 % 12.0 %Microsoft 28.61 239,602 185,722 68,098 14,218 (11.3)% 7.1 % 2.5 x 2.2 x 6.3 x 5.3 x 10.9 x 9.3 x 16.3% 19.2% 17.3% 75.4 % 40.7 % 30.5 %Premiere Global 10.99 505 667 21 183 21.6 % 12.4 % 1.3 x 1.3 x 7.4 x 6.9 x 15.1 x 13.2 x 5.1% 6.1% 13.7% 57.4 % 17.9 % 6.9 %

M ean 30,874 23,773 9,687 2,585 4.4 % 7.8 % 3.6 x 3 .1 x 15.8 x 14.1 x 25.8 x 21.7 x 18.0% 30.3% 6.5% 73.6 % 19.2 % 10.5 %M edian 819 739 89 5 (4.9)% 5.5 % 3.8 x 3.4 x 9.8 x 9 .9 x 25.1 x 18.6 x 16.8% 6.1% 6.7% 73.3 % 18.6 % 9.5 %

C o ntent C reatio n & M anagemenAdobe 43.52 21,842 19,712 3,661 1,531 26.8 % 15.5 % 4.5 x 4.7 x 12.3 x 16.6 x 20.3 x 29.1 x (4.0)% (26.1)% (30.2)% 87.8 % 36.8 % 24.7 %Destiny Media 0.60 31 30 1 0 (10.2)% (8.1)% 7.6 x 6.5 x 42.9 x 22.2 x 82.6 x NA 17.4% 93.5% NA 100.0 % 17.8 % 9.7 %Kudelski 13.16 706 880 120 295 84.0 % 26.5 % 1.0 x 1.0 x 8.4 x 6.7 x 31.4 x 12.8 x 0.4% 25.0% NA 71.0 % 11.3 % 2.4 %Rovi 21.41 2,157 2,777 863 1,484 (34.2)% 38.8 % 4.3 x 4.3 x 10.0 x 9.0 x 11.2 x 10.4 x (0.8)% 11.6% 7.9% 83.1 % 42.5 % 30.8 %Sumavision 2.74 919 673 246 0 (0.7)% 3.6 % 8.0 x NA 17.7 x NA 22.6 x NA NA NA NA 100.0 % 45.1 % 48.4 %

M ean 5,131 4,815 978 662 13.1 % 15.2 % 5.1 x 4 .1 x 18.3 x 13.6 x 33.6 x 17.4 x 3 .3% 26.0% (11.2)% 88.4 % 30.7 % 23.2 %M edian 919 880 246 295 (0.7)% 15.5 % 4.5 x 4.5 x 12.3 x 12.8 x 22.6 x 12.8 x (0.2)% 18.3% (11.2)% 87.8 % 36.8 % 24.7 %

C o ntent D elivery ServicesAkamai 35.32 6,286 5,849 437 0 (3.8)% (13.7)% 4.3 x 3.9 x 9.5 x 9.2 x 19.5 x 17.9 x 9.9% 3.6% 8.9% 69.6 % 44.8 % 23.9 %Brightcove 6.21 174 144 30 0 (75.0)% (31.3)% 1.6 x 1.4 x NA NA NA NA 17.8% NA 55.0% 68.9 % (3.3)% (13.2)%Limelight 2.08 202 76 128 2 (36.8)% (6.3)% 0.4 x 0.4 x 7.7 x 6.8 x NA NA 5.1% 13.2% 8.1% 53.5 % 5.5 % (11.8)%

M ean 2,221 2,023 198 1 (38.5)% (17.1)% 2.1 x 1.9 x 8.6 x 8 .0 x 19.5 x 17.9 x 10.9% 8.4% 24.0% 64.0 % 15.7 % (0.3)%M edian 202 144 128 0 (36.8)% (13.7)% 1.6 x 1.4 x 8.6 x 8 .0 x 19.5 x 17.9 x 9 .9% 8.4% 8.9% 68.9 % 5.5 % (11.8)%

C R M & C usto mer ServiceeGain 8.66 215 204 19 8 44.3 % 92.4 % 4.3 x 3.3 x NA NA NA NA 28.6% NA 34.5% 66.4 % (8.4)% (14.9)%Jive Softw are 15.20 1,000 866 145 11 (44.0)% 4.6 % 7.6 x 5.7 x NA NA NA NA 33.7% (55.1)% (29.9)% 60.5 % (14.8)% (23.7)%LivePerson 13.58 758 655 103 0 (19.0)% 3.3 % 4.2 x 3.6 x 20.8 x 20.1 x 41.2 x 41.8 x 16.8% 3.4% (1.5)% 77.4 % 20.0 % 12.0 %salesforce.com 44.71 26,189 25,969 868 648 15.7 % 6.4 % 8.5 x 6.7 x 51.3 x 38.7 x 109.7 x 88.8 x 26.8% 32.5% 23.5% 77.6 % 16.6 % 7.5 %

M ean 7,041 6,924 284 167 (0.7)% 26.7 % 6.1 x 4.8 x 36.1 x 29.4 x 75.4 x 65.3 x 26.5% (6.4)% 6.7% 70.5 % 3.4 % (4.8)%M edian 879 760 124 10 (1.6)% 5.5 % 6.0 x 4.6 x 36.1 x 29.4 x 75.4 x 65.3 x 27.7% 3.4% 11.0% 71.9 % 4.1 % (3.7)%

48Capstone Partners









ER P , Supply C hain & C o mmerceDemandw are 25.35 762 660 107 5 (14.9)% (7.2)% 8.3 x 6.8 x NA NA NA NA 22.8% NA (63.8)% 69.4 % 4.2 % (6.7)%E2open 19.94 500 467 34 1 NA 40.8 % 6.3 x 5.6 x NA NA NA NA 13.0% NA 72.9% 69.0 % (2.0)% (8.0)%SciQuest 24.04 541 496 45 0 57.7 % 51.6 % 7.5 x 5.4 x 39.7 x 27.6 x 100.2 x 65.2 x 37.4% 43.8% 53.6% 69.5 % 18.8 % 8.0 %SPS Commerce 42.67 637 571 66 0 58.7 % 14.5 % 7.4 x 5.8 x 63.4 x 45.5 x 101.6 x 85.6 x 27.5% 39.5% 18.8% 71.4 % 11.7 % 7.6 %

M ean 610 548 63 2 33.9 % 24.9 % 7.4 x 5.9 x 51.6 x 36.6 x 100.9 x 75.4 x 25.2% 41.6% 20.4% 69.8 % 8.2 % 0.2 %M edian 589 533 56 1 57.7 % 27.7 % 7.4 x 5.7 x 51.6 x 36.6 x 100.9 x 75.4 x 25.1% 41.6% 36.2% 69.4 % 7.9 % 0.5 %

F inance & A dministrat io nBottomline 28.51 1,072 925 281 134 2.0 % 8.0 % 3.8 x 3.5 x 38.1 x 18.0 x 25.9 x 25.1 x 10.3% 111.8% 3.4% 53.5 % 10.0 % 15.8 %Concur 68.66 3,819 3,589 485 255 19.7 % 1.7 % 7.8 x 6.2 x 31.5 x 28.2 x 67.4 x 68.3 x 26.1% 11.6% (1.2)% 71.9 % 24.6 % 12.1 %Intuit 65.66 19,461 19,282 678 499 9.1 % 10.4 % 4.6 x 4.0 x 12.9 x 10.2 x 23.1 x 18.0 x 15.5% 25.9% 28.2% 81.9 % 35.7 % 20.5 %NetSuite 80.06 5,865 5,682 186 3 59.2 % 19.0 % 18.4 x 14.1 x 159.5 x 148.2 x 307.9 x NA 30.0% 7.6% 3.4% 69.1 % 11.5 % 6.0 %Tangoe 12.39 468 440 50 23 (34.1)% 4.4 % 2.8 x 2.3 x 19.7 x 14.0 x 25.3 x 18.7 x 23.8% 41.0% 35.4% 54.3 % 14.4 % 12.6 %

M ean 6,137 5,983 336 183 11.2 % 8.7 % 7.5 x 6.0 x 52.4 x 43.7 x 89.9 x 32.5 x 21.1% 39.6% 13.8% 66.1 % 19.3 % 13.4 %M edian 3,819 3,589 281 134 9.1 % 8.0 % 4.6 x 4.0 x 31.5 x 18.0 x 25.9 x 21.9 x 23.8% 25.9% 3.4% 69.1 % 14.4 % 12.6 %

H uman R eso urcesCornerstone 34.10 1,733 1,663 76 6 56.1 % 15.5 % 14.1 x 9.2 x NA NA NA NA 53.5% 97.4% 47.4% 70.7 % (7.4)% (13.5)%Personal & Informatik 44.28 333 313 20 0 15.0 % 9.3 % 3.4 x NA 9.7 x NA 15.8 x NA NA NA NA 69.3 % 35.4 % 23.1 %Saba 7.95 237 223 15 1 (19.0)% (9.0)% 1.8 x 1.5 x NA NA NA NA 20.8% 127.1% NA 62.9 % (13.3)% (3.7)%WageWorks 25.03 803 542 305 44 NA 40.6 % 3.1 x 2.6 x 14.3 x 10.8 x 49.1 x 39.7 x 17.4% 33.1% 23.5% 63.5 % 21.4 % 7.0 %Workday 61.63 10,231 9,465 790 25 NA 13.1 % 34.6 x 22.0 x NA NA NA NA 57.6% (37.0)% 18.1% 57.4 % (29.4)% (25.2)%

M ean 2,667 2,441 241 15 17.4 % 13.9 % 11.4 x 8.8 x 12.0 x 10.8 x 32.4 x 39.7 x 37.3% 55.2% 29.7% 64.8 % 1.3 % (2.5)%M edian 803 542 76 6 15.0 % 13.1 % 3.4 x 5.9 x 12.0 x 10.8 x 32.4 x 39.7 x 37.1% 65.3% 23.5% 63.5 % (7.4)% (3.7)%

Licensed So ftware LeadersIBM 213.30 237,725 259,818 11,176 33,269 2.2 % 11.4 % 2.5 x 2.4 x 9.5 x 9.0 x 13.9 x 12.7 x 1.7% 5.7% 9.6% 48.1 % 26.2 % 16.9 %Microsoft 28.61 239,602 185,722 68,098 14,218 (11.3)% 7.1 % 2.5 x 2.2 x 6.3 x 5.3 x 10.9 x 9.3 x 16.3% 19.2% 17.3% 75.4 % 40.7 % 30.5 %Oracle 32.33 152,296 138,641 33,407 19,752 10.9 % (3.0)% 3.7 x 3.6 x 6.8 x 7.2 x 12.2 x 11.3 x 4.4% (6.2)% 8.1% 80.4 % 55.2 % 34.9 %SAP 80.27 95,641 98,915 3,286 6,559 14.9 % 0.1 % 4.6 x 4.3 x 13.5 x 12.4 x 19.8 x 18.1 x 7.9% 8.1% 9.4% 71.2 % 34.4 % 22.6 %

M ean 181,316 170,774 28,992 18,450 4.2 % 3.9 % 3.3 x 3 .1 x 9.0 x 8 .5 x 14.2 x 12.9 x 7 .6% 6.7% 11.1% 68.8 % 39.1 % 26.2 %M edian 195,010 162,182 22,292 16,985 6.5 % 3.6 % 3.1 x 3.0 x 8 .1 x 8.1 x 13.1 x 12.0 x 6 .2% 6.9% 9.5% 73.3 % 37.5 % 26.6 %

49Capstone Partners









M arket ing & A dvert isingAdobe 43.52 21,842 19,712 3,661 1,531 26.8 % 15.5 % 4.5 x 4.7 x 12.3 x 16.6 x 20.3 x 29.1 x (4.0)% (26.1)% (30.2)% 87.8 % 36.8 % 24.7 %Bazaarvoice 7.32 533 427 105 0 (63.2)% (21.7)% 2.9 x 2.3 x NA NA NA NA 23.3% (5.9)% (25.5)% 65.4 % (10.6)% (11.9)%Constant Contact 12.98 398 305 94 0 (56.4)% (8.7)% 1.2 x 1.1 x 8.3 x 7.0 x 22.8 x 20.6 x 13.4% 19.3% 10.7% 70.8 % 14.5 % 7.0 %ExactTarget 23.27 1,598 1,490 109 1 (10.5)% 16.4 % 5.1 x 4.0 x NA NA NA NA 28.1% (53.4)% NA 64.6 % 5.4 % (3.9)%Google 794.19 261,815 220,937 48,088 7,210 23.9 % 12.3 % 4.4 x 3.6 x 11.7 x 10.0 x 19.9 x 17.4 x 21.7% 16.7% 14.5% 59.1 % 37.7 % 26.4 %Jive Softw are 15.20 1,000 866 145 11 (44.0)% 4.6 % 7.6 x 5.7 x NA NA NA NA 33.7% (55.1)% (29.9)% 60.5 % (14.8)% (23.7)%Marin Softw are 16.43 508 487 32 11 NA NA 8.2 x NA NA NA NA NA NA NA NA 58.4 % (31.5)% (34.5)%Millennial Media 6.35 503 366 137 0 (73.0)% (49.3)% 2.1 x 1.3 x NA NA NA NA 55.2% NA NA 40.5 % 2.6 % 0.3 %ReachLocal 14.96 423 327 95 0 109.8 % 15.9 % 0.7 x 0.6 x 13.9 x 10.7 x NA 31.4 x 17.5% 29.7% NA 50.1 % 5.2 % 2.2 %Responsys 8.85 435 329 107 1 (26.1)% 48.5 % 2.0 x 1.7 x 12.5 x 12.4 x 38.5 x NA 16.6% 1.0% (23.6)% 53.7 % 16.1 % 7.5 %ValueClick 29.56 2,249 2,255 137 143 49.7 % 52.3 % 3.4 x 3.0 x 10.0 x 8.9 x 17.4 x 16.0 x 13.8% 12.1% 8.9% 62.3 % 34.2 % 20.3 %Yahoo! 23.53 25,912 21,765 4,184 37 54.6 % 18.2 % 4.4 x 4.8 x 12.8 x 13.1 x 19.9 x 21.1 x (8.2)% (1.9)% (5.4)% 67.5 % 34.1 % 28.5 %

M ean 26,435 22,439 4,741 745 (0.8)% 9.4 % 3.9 x 3.0 x 11.6 x 11.2 x 23.1 x 22.6 x 19.2% (6.4)% (10.0)% 61.7 % 10.8 % 3.6 %M edian 767 676 123 6 (10.5)% 15.5 % 3.9 x 3.0 x 12.3 x 10.7 x 20.1 x 20.8 x 17.5% (0.5)% (14.5)% 61.4 % 9.9 % 4.6 %

Vert ical M arketACI Worldw ide 48.86 1,928 2,238 76 386 21.3 % 11.8 % 3.4 x 2.8 x 11.7 x 9.3 x 23.3 x 16.1 x 21.9% 25.3% 44.7% 66.1 % 28.7 % 12.6 %Athenahealth 97.04 3,526 3,333 193 0 30.9 % 32.4 % 7.9 x 6.1 x 36.7 x 29.4 x 100.5 x 79.4 x 29.3% 24.7% 26.7% 60.5 % 21.5 % 8.5 %Blackbaud 29.63 1,317 1,520 13 217 (10.8)% 29.8 % 3.4 x 3.0 x 15.9 x 13.9 x 31.5 x 24.5 x 11.8% 14.8% 28.7% 54.7 % 21.4 % 9.4 %Dealertrack 29.38 1,265 1,250 178 162 (2.9)% 2.3 % 3.2 x 2.8 x 12.8 x 11.1 x 26.2 x 24.0 x 16.2% 16.1% 9.5% 43.2 % 25.0 % 12.7 %Ebix 16.22 603 647 37 82 (30.0)% 0.6 % 3.2 x 2.9 x 7.6 x 6.7 x 9.0 x 8.6 x 12.0% 13.1% 4.4% 80.9 % 42.7 % 35.5 %Ellie Mae 24.05 629 568 60 0 115.5 % (13.3)% 5.6 x 4.4 x 17.3 x 12.6 x 22.9 x 22.6 x 26.8% 37.5% 1.2% 77.3 % 32.2 % 26.3 %Envestnet 17.51 566 536 30 0 39.9 % 25.5 % 3.4 x 2.7 x 22.4 x 14.6 x 53.1 x 31.1 x 27.7% 53.3% 70.7% 29.2 % 15.3 % 7.0 %Higher One 8.89 415 489 13 88 (40.5)% (15.7)% 2.5 x 2.3 x 7.2 x 8.4 x 13.3 x 13.9 x 7.3% (15.1)% (4.3)% 59.4 % 34.5 % 19.2 %IDOX 0.76 264 299 6 41 59.6 % (13.5)% 3.2 x 3.0 x 12.2 x 9.4 x 22.7 x 12.7 x 8.1% 30.5% 78.9% 88.7 % 26.2 % 13.1 %Market Leader 8.96 240 218 22 0 144.8 % 36.8 % 4.8 x 3.7 x NA 35.7 x NA NA 29.8% NA 46.6% 100.0 % 0.6 % (16.7)%Medidata Solutions 57.98 1,539 1,417 123 0 117.6 % 48.0 % 6.5 x 5.3 x 28.9 x 23.9 x 55.8 x 50.7 x 22.4% 20.7% 10.0% 71.3 % 22.5 % 12.1 %NIC 19.16 1,257 1,194 62 0 57.8 % 17.3 % 5.7 x 5.0 x 24.1 x 19.9 x 47.9 x 41.2 x 12.5% 21.1% 16.3% 39.1 % 23.5 % 12.2 %OpenTable 62.98 1,446 1,342 104 0 55.6 % 29.1 % 8.3 x 7.1 x 19.1 x 16.3 x 37.0 x 32.9 x 17.2% 17.2% 12.4% 74.1 % 43.4 % 24.5 %Playtech 9.60 2,787 2,710 168 91 64.8 % 38.4 % 6.5 x 6.0 x 17.5 x 12.8 x 25.1 x 15.0 x 8.7% 36.4% 68.2% 100.0 % 37.0 % 26.9 %RealPage 20.71 1,569 1,545 34 10 8.0 % (4.0)% 4.8 x 4.0 x 21.1 x 16.8 x 44.1 x 34.9 x 19.7% 25.1% 26.1% 60.1 % 22.8 % 10.8 %Solera 58.33 4,018 4,723 448 1,153 27.1 % 9.1 % 5.9 x 5.4 x 13.5 x 12.6 x 21.8 x 20.9 x 8.4% 7.0% 4.4% 68.9 % 43.6 % 23.2 %SS&C Technologies 29.98 2,424 3,350 86 1,012 28.5 % 29.8 % 6.1 x 4.7 x 15.2 x 11.6 x 21.1 x 16.5 x 29.7% 31.1% 28.1% 45.7 % 40.0 % 21.3 %Temenos 23.75 1,641 1,737 118 214 28.4 % 35.9 % 3.9 x 3.7 x 13.8 x 12.2 x 26.6 x 21.6 x 4.9% 12.7% 22.7% 68.3 % 28.0 % 13.8 %

M ean 1,524 1,618 98 192 39.8 % 16.7 % 4.9 x 4.2 x 17.5 x 15.4 x 34.2 x 27.4 x 17.5% 21.9% 27.5% 66.0 % 28.3 % 15.1 %M edian 1,381 1,379 69 61 29.7 % 21.4 % 4.8 x 3.9 x 15.9 x 12.7 x 26.2 x 22.6 x 16.7% 21.1% 24.4% 67.2 % 27.1 % 12.9 %

50Capstone Partners






Observations andRecommendationsTechnology & Telecom Team

51Capstone Partners






DAVID MICHAELSManaging Director, Head of Technology & Telecom GroupPhone: (858) 926-5950Email: [email protected] Michaels is a Managing Director of Capstone where he is responsible for managing the firm’s Technology & Telecom Group(TTG). David founded SagePoint Advisors in 2008, a boutique investment banking firm focused on providing merger, acquisitionand strategic advisory services to growth companies in the technology and telecom sectors. Prior to founding SagePoint, Davidwas a Co-Founder, Partner and Managing Director at Montgomery & Co., a leading investment bank focused on servingemerging-growth technology companies and their venture backers. David co-founded Montgomery’s investment bankingbusiness in 1996 and played an instrumental role in building the business to over $50 million in revenues and 80 employees. Mr.Michaels also ran the firm’s Communications and Digital Media Technology practice areas for several years prior to his departure.David has intimate knowledge of the strategic landscape, market dynamics and technology underpinnings of several hightechnology market segments including Mobile Software & Services, Consumer Internet, E-Commerce, Enterprise SaaS, Cloud &Infrastructure Software and Consumer, IT & Telecom Hardware. Prior to joining Montgomery in 1994, David worked at Bankers TrustCorporate Finance Department, where he helped execute merger and acquisition assignments. Prior to that, Mr. Michaels workedas a structural engineer at General Dynamics, Mr. Michaels received an M.B.A. in entrepreneurship from the Anderson School ofManagement at UCLA and holds a B.S. in Mechanical Engineering from the University of Michigan.

JOHN FERRARAPresident and Managing PartnerPhone: (617) 619-3325Email: [email protected] Ferrara is the founder of Capstone, responsible for managing the firm’s investment and merchant banking operations. Overhis 20+ year career in mergers & acquisitions, venture capital and management consulting, John has executed well over 100transactions and related engagements. John was formerly a Regional Managing Partner with Andersen Corporate Finance,where he founded the Boston office and held various national and global leadership positions. He started his career in LehmanBrothers’ M&A group in New York, London and Riyadh, later becoming a founding member of Rodman & Renshaw's M&A practicein New York. After a break to compete in Australia's semi-professional baseball league, John joined The Deloitte Consulting Groupin Los Angeles to focus on turnaround and interim management engagements. John is the founder of the Spirit Triumph CancerFoundation, author of "Beyond the Waterspout" and owner in the Holyoke Sox, a baseball franchise in the NECBL. He was therecipient of the M&A Advisor “Deal Maker of the Year” award in 2010 and the “40 Under 40” award for entrepreneurial excellencein 2006. John earned his MBA from The Anderson School at UCLA and the London School of Economics, during which time hefounded a corporate finance advisory boutique, JG Atlas Advisors, and its related investment arm, Atlantis Capital Partners. Heholds dual BA degrees from Wesleyan University and is qualified as a General Securities Principal.

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TEAK MURPHYVice President, Technology & Telecom GroupPhone: (858) 345-2408Email: [email protected]

Teak joins Capstone as a Vice President in the Technology & Telecom Group, based out of San Diego. Prior to Capstone’sacquisition of SagePoint Advisors, Teak worked at SagePoint as a Senior Associate advising technology companies on mergers,acquisitions and strategic capital raises. Prior to joining SagePoint, Teak worked as a Senior Associate with Enterprise PartnersVenture Capital, the largest Southern California based VC firm, where he evaluated investment opportunities and worked closelywith senior management and board members to successfully grow portfolio companies. Prior to Enterprise Partners, Teak workedas an Associate in technology investment banking at Montgomery & Co. where he spent three years working closely withSagePoint's founder David Michaels on buy-side and sell-side M&A transactions. Prior to Montgomery, Teak worked at Cowen &Co. advising technology companies on M&A and IPO transactions. Teak's experience working on fund raising, mergers andacquisitions, and initial public offerings as both an advisor and investor provides unique insight into the needs of venture-backedcompanies. Teak graduated from the University of Southern California with honors, receiving a B.S. in BusinessAdministration/Finance.

BRANDON OVERMYERAssociate, Technology & Telecom GroupPhone: (858) 926-5177Email: [email protected]

Brandon is an Associate in the Technology & Telecom Group, working closely with clients to execute and optimize mergers,acquisitions and strategic capital raises. Prior to joining Capstone, Brandon was an Analyst in technology investment banking withArchPoint Partners in San Francisco, supporting the senior team on middle market domestic and cross-border technologytransactions. Brandon has previously worked in varying roles with Apple, LG and a number of startup ventures in addition to civillitigation practice.

Brandon received his BA from University of Florida, graduating with distinction in three years. He received his JD from BaylorUniversity School of Law and is a member of the Florida Bar.

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