q2/20 sector report digital technology software and it

Q2/20 Sector Report Digital Technology

Software and IT Services

Agenda

1. Introduction Page 3

2. Software market: Valuation and M&A activity Page 5

3. Introduction to IMAP and relevant expertise Page 31

September

Introduction

September

▪ We are pleased to present the Software Industry Report Q2 2020. This report provides commentary and analysis on current market trends, valuation developments as well as M&A dynamics within the Software and IT Services sector in Q2 2020

▪ IMAP has advised on more than 200 M&A transactions in the technology space in the past 10 years, comprising Internet Software & Services, IT consulting and services, Software companies, as well as Technology and High-Tech companies

▪ In Germany, IMAP has advised on nine software/ IT transactions within the last two years

Dr. Carsten LehmannManaging Partner

Nils KellerDirector

Martin MichalekAssociate

Lennart HunoldAnalyst

Agenda

September




Sector segmentation | Executive Summary

5

Welcome to IMAP Germany‘s Software Industry Report

September 2020

▪ The global software market is continuously characterized by high levels of deal activity, though Q2 2020 has seen a two year low in terms of deal activity

▪ Limited M&A activity in volume and deal count is most likely due to uncertainties caused by the Corona Pandemic

▪ While revenue multiples paid in M&A transactions declined compared to the previous quarter, they remained at a comparable level to the three-year average. EBITDA multiples decreased to 11.1x which constitutes a three-year low

▪ European deal volume has a lower share of global deal volume compared to the share in terms of deal activity, which indicates smaller transaction volumes on average for European targets. The share of financial buyers is higher in Europe compared with global M&A activity

▪ In the Q2 2020, all analyzed sub-sectors have recovered from the Covid crisis and show a stock performance above that of the last 12 months. SaaS companies in particular have seen very strong growth

▪ Providers of application software remain the highest valued sub-sector with a median revenue multiple for 2020E of 8.4x, followed by Conglomerates and SaaS companies with 5.7x and 5.3x respectively

Sector segmentation overview Executive Summary

▪ How we segment the Software sector

− There is no right or wrong in segmenting the Software industry in specific sub-sectors for valuation and M&A purposes as multiple dimensions of overlap exist, e.g. in terms of technological and functional focus, business model, vertical, or company size

− Existing industry metrics and reports sometimes show no segmentation at all or more than 15 sub-sectors

▪ We have chosen a simplified approach by distinguishing 6 broad sub sectors in our report:

− Infrastructure and Cloud: companies providing hardware, software or services related to running and maintaining infrastructure and cloud environments

− Software as a Service: companies following a subscription-based business model

− Application software: companies providing application software

− SW development: companies active in software development, either as service or technology providers

− IT service: companies providing a broader spectrum of IT services

− Conglomerates: a collection of software and IT companies with a market cap. in excess of USD100bn

Public Company Valuation

6

Selected public companies by sub-sector

Σ MCap:XY

∅ EV/Revenue 2020:XY

∅ EV/EBITDA 2020: XY

Infrastructure SaaS Application

Software Development IT Services Conglomerates

September 2020

Σ MCap:EURm 489,096

Median EV/Revenue:1.1x

Median EV/EBITDA:9.8x










Σ MCap:EURm 2,308,355



Σ MCap:EURm 3,918,489



1) 2020 Median EV/ Revenue and Median EV/EBITDA figures

https://www.google.de/url?sa=i&url=https%3A%2F%2Fwww.businesswire.com%2Fnews%2Fhome%2F20131121005208%2Fen%2FNTT-DATA-Acquire-Optimal-Solutions-Integration-Award-Winning&psig=AOvVaw0QBV1Gspo7bF1w3E6VhNDy&ust=1589991677460000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCIDy2dyqwOkCFQAAAAAdAAAAABAI

Stock Performance

7

+11% +41% +5% +14% +5% +11%LTM Growth

Source: CIQ

Q2 2019 – Q2 2020 indexed stock performance

1) Weighting of shares based on market capitalization September 2020

Segmented, indexed stock performance1

60%

70%

80%

90%

100%

110%

120%

130%

140%

150%

160%

Date 8/9/2019 9/23/2019 11/4/2019 12/17/2019 1/31/2020 3/16/2020 4/28/2020 6/10/2020

Infrastructure SaaS Application Software Developer IT Services Conglomerates

4,7x5,3x

8,4x

3.9x

1,1x

5,7x

Infrastructure &Cloud

SaaS Application SoftwareDeveloper

IT Service Conglomerates

Segment Valuation (I/III)

8

Median segment valuation metrics in 2020E

Source: CIQ September 2020

EV/Revenue 2020E Revenue growth 2020E

EV/EBITDA 2020E EBITDA-margin 2020E

14,2x

35,7x

27,8x

12.9x

9,8x

16,5x




Median

37%

16%

31%

19%

14%

41%




Median

-3%

12%

4%

0%

-1%

2%




-3%

12%

4%

0%

-1%

2%

4%

9% 9%

5%3%

7%6%

15%

11%

8%

5%

10%




2020E 2021E 2022E

37%

16%

31%

19%14%

41%

36%

18%

34%

20%14%

40%

36%

19%

35%

20%

15%

42%




2020E 2021E 2022E

4,7x 5,3x

8,4x

3.4x

1,1x

5,7x

4,6x 4,7x

7,3x

3.1x

1,1x

5,4x

4,2x 4,2x

6,3x

2.9x

1,0x

5,1x




2020E 2021E 2022E

Segment Valuation (II/III)

9

Development of the median segment valuation metrics between 2020E and 2022E


EV/Revenue 2020E-2022E Revenue growth 2020E-2022E

EV/EBITDA 2020E-2022E EBITDA-margin 2020E-2022E

2020E

2020E

14,2x

35,7x27,8x

12.9x9,8x

16,5x

13,2x

29,3x

23,1x

14.2x9,4x

13,2x11,6x

25,0x

20,5x

14.0x

9,0x11,0x




2020E 2021E 2022E

Adobe

AlphabetCisco Facebook

IntelIBM

Microsoft

Oracle

Salesforce

SAP

0,0x

5,0x

10,0x

15,0x

-8,0% -4,0% 0,0% 4,0% 8,0% 12,0% 16,0% 20,0% 24,0%EV/2

02

0E

Rev

enu

e

2020E Revenue Growth

Accenture plc

CGI Inc.CognizantHCL Technologies

Infosys Ltd.

Neurones

Progress Software Corp.

0,0x

5,0x

10,0x

15,0x

-5,0% 0,0% 5,0% 10,0% 15,0%EV/2

02

0E

Rev

enu

e


AdobeAnsys

Automatic Data Processing

Constellation Software

Dassault Systems

Hexagon AB

Intuit Inc.Microsoft

Open Text Corp.Oracle Pegasystems

PSI Software

Salesforce

SAPSynopsys

WorkdayZendesk

0,0x

8,0x

16,0x

-8,0% -3,0% 2,0% 7,0% 12,0% 17,0% 22,0%

EV/2

02

0E

Rev

enu

e


Adobe

Blackbaud Box Inc.

DocuSign Inc.

Dropbox

Envestnet

Guidewire Software

LogMeln ProofpointPure Storage Inc.

QAD Inc.

Salesforce

Workday

ZendeskZuora

0,0x5,0x

10,0x15,0x20,0x25,0x30,0x35,0x

-10,0% -5,0% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0%EV/2

02

0E

Rev

enu

e


Akamai Technologies

Arista Networks

Check Point Software

CiscoCitrix

F5 Networks

Juniper NetworksMicrosoftSoftcat

VMWare

0,0x

4,0x

8,0x

12,0x

-5,0% 0,0% 5,0% 10,0% 15,0%EV/2

02

0E

Rev

enu

e


Segment Valuation (III/III)

10

Correlation between EV/Revenue 2020E and revenue growth 2020E


Infrastructure Software Developer

SaaS IT Service

Application Conglomerates

Accenture plc

AdessoAllgeier

Atos SE

BechtleCancom

CapgeminiCGI Inc.Cognizant

Computacenter

DatagroupDevoteamDXC Technology

Indra Sistemas

Infosys

IBM

NTT Data Sopra Steria

Tata Consulting Services

Wipro Ltd.

0,0x

2,0x

4,0x

6,0x

-16,0% -12,0% -8,0% -4,0% 0,0% 4,0% 8,0% 12,0%

EV/2

02

0E

Rev

enu

e


Mkt. Cap Net Debt EV EV/Revenue EV/EBITDA EV/EBIT

Company Country (EUR m) (EUR m) (EUR m) 2020E 2021E 2022E 2020E 2021E 2022E 2020A 2021E 2022E

Akamai Technologies, Inc. US 15.097 1.166 16.200 6,1x 5,7x 5,3x 14,1x 13,1x 12,0x 19,9x 18,6x 16,8x

Arista Networks, Inc. US 15.019 -2.406 12.744 6,7x 5,9x 5,2x 17,1x 15,0x 12,8x 18,0x 15,8x 13,8x

Check Point Software Technologies Ltd. IL 14.750 -1.414 13.413 7,8x 7,6x 7,4x 15,6x 15,6x 15,7x 16,0x 15,8x 15,9x

Cisco Systems, Inc. US 167.907 -10.652 158.244 3,8x 3,8x 3,7x 10,2x 10,6x 10,2x 11,3x 11,6x 11,1x

Citrix Systems, Inc. US 14.805 944 15.698 5,8x 5,7x 5,2x 16,9x 17,5x 15,1x 20,1x 19,4x 16,5x

F5 Networks, Inc. US 7.235 -315 6.937 3,5x 3,4x 3,2x 10,3x 9,7x 8,9x 11,6x 10,9x 10,0x

Juniper Networks, Inc. US 7.144 18 7.161 1,9x 1,9x 1,8x 9,5x 8,8x 8,2x 12,5x 11,2x 10,4x

Micro Focus International plc GB 1.135 4.028 4.999 2,0x 2,1x 2,2x 5,4x 5,7x 5,6x 6,1x 7,0x 6,4x

Softcat plc GB 2.930 -50 2.884 2,3x 2,2x 2,0x 27,7x 26,2x 24,4x 28,6x 26,7x 24,8x

VMware, Inc. US 51.369 2.480 53.661 5,9x 5,5x 5,0x 15,1x 16,0x 14,2x 17,8x 19,4x 16,8x

Mean 29.739,2 -620,2 29.194,1 4,6 4,4 4,1 14,2 13,8 12,7 16,2 15,6 14,3

Median 14.777,6 -16,1 13.078,8 4,8 4,7 4,4 14,6 14,1 12,4 16,9 15,8 14,8

Valuations in the Infrastructure & Cloud Segment (I/II)

11

Selected publicly listed companies - multiples


Revenue (in EURm) Revenue Growth EBITDA-Margin EBIT-Margin

Company Country 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E

Akamai Technologies, Inc. US 2.653,4 2.828,1 3.033,1 2,9% 6,6% 7,2% 43,3% 43,7% 44,6% 30,7% 30,8% 31,8%

Arista Networks, Inc. US 1.889,7 2.159,3 2.459,2 -12,0% 14,3% 13,9% 39,5% 39,4% 40,5% 37,5% 37,2% 37,6%

Check Point Software Technologies Ltd. IL 1.723,6 1.773,0 1.810,5 -3,0% 2,9% 2,1% 49,8% 48,6% 47,1% 48,7% 47,9% 46,6%

Cisco Systems, Inc. US 41.620,1 41.591,7 43.082,9 -10,7% -0,1% 3,6% 37,4% 36,0% 35,8% 33,5% 32,8% 33,1%

Citrix Systems, Inc. US 2.696,3 2.748,5 2.993,2 0,8% 1,9% 8,9% 34,5% 32,7% 34,7% 28,9% 29,4% 31,7%

F5 Networks, Inc. US 1.970,8 2.067,6 2.155,8 -3,8% 4,9% 4,3% 34,3% 34,4% 36,2% 30,3% 30,8% 32,0%

Juniper Networks, Inc. US 3.700,5 3.829,9 3.947,0 -6,1% 3,5% 3,1% 20,4% 21,3% 22,0% 15,5% 16,7% 17,4%

Micro Focus International plc GB 2.480,3 2.373,9 2.292,9 -18,0% -4,3% -3,4% 37,6% 36,9% 38,6% 32,9% 30,3% 34,3%

Softcat plc GB 1.233,7 1.332,8 1.458,7 -1,9% 8,0% 9,4% 8,4% 8,3% 8,1% 8,2% 8,1% 8,0%

VMware, Inc. US 9.128,8 9.677,6 10.655,4 17,7% 6,0% 10,1% 38,9% 34,8% 35,4% 33,0% 28,6% 29,9%

Mean 6.909,7 7.038,2 7.388,9 -3,4% 4,4% 5,9% 34,4% 33,6% 34,3% 29,9% 29,3% 30,2%

Median 2.566,9 2.561,2 2.726,2 -3,4% 4,2% 5,8% 37,5% 35,4% 36,0% 31,8% 30,5% 31,9%

Valuations in the Infrastructure & Cloud Segment (II/II)

12

Selected publicly listed companies - key figures



Company Country (EUR m) (EUR m) (EUR m) 2020A 2021E 2022E 2020A 2021E 2022E 2020A 2021E 2022E

Adobe Inc. US 181.159 311 181.450 17,0x 14,7x 12,7x 35,8x 30,5x 26,3x 40,8x 34,4x 29,6x

Blackbaud, Inc. US 2.594 505 3.072 4,0x 4,0x 4,0x 16,5x 17,2x 16,1x 20,1x 20,1x n.a.

Box, Inc. US 2.372 185 2.542 4,1x 4,0x 3,6x 48,7x 21,9x 17,8x 564,6x 35,2x 25,4x

DocuSign, Inc. US 34.849 -77 34.778 39,9x 31,4x 24,5x 482,4x 292,5x 175,1x 1095,0x 451,6x 250,3x

Dropbox, Inc. US 8.062 -15 8.047 5,1x 4,5x 4,1x 18,8x 15,7x 13,4x 28,6x 23,1x 18,8x

Envestnet, Inc. US 3.797 572 4.323 5,3x 4,8x 4,3x 24,7x 21,3x 18,7x n.a. 127,2x 87,4x

Guidewire Software, Inc. US 8.333 -555 7.823 13,1x 12,1x 10,6x 112,4x 85,1x 61,3x 133,5x 107,0x 68,4x

LogMeIn, Inc. US 3.537 49 3.583 3,1x 3,0x n.a. 10,5x 9,5x n.a. 10,6x 10,8x n.a.

Proofpoint, Inc. US 5.473 -122 5.358 6,2x 5,3x 4,5x 38,9x 29,7x 24,7x 49,9x 38,5x 29,9x

Pure Storage, Inc. US 4.044 -604 3.486 2,4x 2,4x 2,1x 27,3x 32,9x 23,8x 75,0x 69,3x 39,9x

QAD Inc. US 675 -100 583 2,1x 2,3x 2,1x 54,0x 42,2x 30,1x 119,1x 91,2x 51,0x

salesforce.com, inc. US 153.403 -3.282 150.386 9,8x 8,9x 7,6x 34,0x 29,9x 25,3x 59,1x 53,6x 40,9x

Workday, Inc. US 36.355 -456 35.935 11,0x 10,2x 8,8x 53,1x 44,6x 38,0x 83,7x 63,4x 50,8x

Zendesk, Inc. US 8.872 136 9.000 10,6x 8,5x 6,8x 105,6x 74,4x 50,2x 193,6x 119,9x 67,9x

Zuora, Inc. US 1.212 -88 1.131 4,5x 4,5x 4,1x n.a. n.a. 162,2x n.a. n.a. n.a.

Mean 30.315,7 -236,1 30.099,9 9,2 8,0 7,1 75,9 53,4 48,8 190,3 89,0 63,4

Median 5.473,1 -77,2 5.358,1 5,3 4,8 4,4 37,3 30,2 25,8 75,0 58,5 45,8

Valuations in the SaaS Segment (I/II)

13


Source: CIQ September 2020Note: EV/EBIT multiples have been excluded due to lack of meaningfulness

Valuations in the SaaS Segment (II/II)

14


Source: CIQ September 20201) EV/EBIT multiples have been excluded due to lack of meaningfulness


Company Country 2020A 2021E 2022E 2020A 2021E 2022E 2020A 2021E 2022E 2020A 2021E 2022E

Adobe Inc. US 10,915.0 12,597.2 14,455.0 7.7% 15.4% 14.7% 48.2% 49.1% 49.3% 42.3% 43.2% 44.0%

Blackbaud, Inc. US 777.7 777.5 786.9 -2.6% 0.0% 1.2% 24.3% 24.3% 24.5% 20.0% 20.0% n.a.

Box, Inc. US 626.1 655.3 720.4 17.8% 4.7% 9.9% 8.3% 21.0% 22.3% 0.7% 12.7% 15.4%

DocuSign, Inc. US 870.8 1,179.5 1,538.6 43.6% 35.5% 30.4% 8.3% 13.0% 15.5% 3.6% 8.4% 10.9%

Dropbox, Inc. US 1,619.0 1,795.6 1,975.9 9.6% 10.9% 10.0% 27.5% 29.5% 30.7% 18.2% 20.3% 23.0%

Envestnet, Inc. US 838.8 932.3 1,043.4 4.2% 11.1% 11.9% 22.8% 23.1% 23.9% 1.8% 5.7% 7.7%

Guidewire Software, Inc. US 598.2 622.6 677.5 -7.1% 4.1% 8.8% 11.7% 3.5% 7.3% 9.8% 0.3% 4.9%

LogMeIn, Inc. US n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Proofpoint, Inc. US 883.6 1,029.0 1,223.7 12.2% 16.5% 18.9% 15.9% 17.7% 17.9% 12.4% 13.7% 14.6%

Pure Storage, Inc. US 1,479.4 1,404.4 1,635.8 22.7% -5.1% 16.5% 8.6% 6.0% 7.8% 3.1% 1.7% 4.4%

QAD Inc. US 280.5 258.8 282.9 -3.2% -7.7% 9.3% 3.9% 7.3% 8.9% 1.7% 4.9% 6.0%

salesforce.com, inc. US 15,337.2 17,727.7 20,838.0 32.7% 15.6% 17.5% 28.8% 30.0% 30.0% 16.6% 17.5% 18.5%

Workday, Inc. US 3,261.6 3,635.3 4,267.5 32.9% 11.5% 17.4% 20.8% 25.0% 25.0% 13.2% 18.1% 18.3%

Zendesk, Inc. US 862.3 1,071.9 1,342.0 18.9% 24.3% 25.2% 10.0% 11.4% 13.1% 5.5% 7.2% 10.2%

Zuora, Inc. US 250.4 252.7 270.3 22.6% 0.9% 7.0% -10.6% -2.0% 2.4% -14.6% -7.1% -3.5%

Mean 2,757.2 3,138.6 3,647.0 15.1% 9.8% 14.2% 16.3% 18.5% 19.9% 9.6% 11.9% 13.4%

Median 866.6 1,050.4 1,282.8 15.0% 11.0% 13.3% 13.8% 19.4% 20.1% 7.6% 10.6% 10.9%




Amadeus IT Group, S.A. ES 19.961 2.755 22.716 8,4x 5,2x 4,4x 43,9x 14,2x 11,2x n.a. 25,4x 16,4x

ANSYS, Inc. US 22.458 -193 22.275 16,6x 14,9x 13,4x 39,2x 33,9x 30,3x 40,2x 35,2x 30,7x

Automatic Data Processing, Inc. US 48.679 404 49.061 3,8x 4,1x 3,9x 15,4x 18,3x 15,7x 17,3x 20,9x 17,5x

Constellation Software Inc. CA 21.374 206 21.577 6,5x 5,5x 4,8x 24,0x 20,1x 17,5x 38,9x 32,0x n.a.

Dassault Systèmes SE FR 39.590 2.208 41.846 9,2x 8,4x 7,8x 27,7x 24,8x 22,0x 31,3x 27,2x 24,2x

Hexagon AB (publ) SE 21.068 1.944 23.058 6,2x 5,8x 5,5x 18,1x 15,9x 15,1x 26,3x 21,8x 20,3x

Intuit Inc. US 68.129 -3.024 65.350 10,4x 9,7x 8,8x 28,9x 26,1x 23,5x 31,8x 30,4x 25,3x

Microsoft Corporation US 1.353.945 -48.324 1.308.254 10,4x 9,9x 8,9x 22,6x 21,3x 18,9x 28,0x 26,3x 23,3x

Open Text Corporation CA 10.455 2.746 12.991 4,7x 4,6x 4,6x 13,4x 12,3x 11,6x 14,6x 12,9x n.a.

Oracle Corporation US 143.096 27.574 169.393 4,8x 5,1x 5,0x 10,2x 10,6x 10,3x 10,9x 11,4x 11,2x

Pegasystems Inc. US 7.847 53 7.897 8,8x 7,4x 6,3x 266,8x 100,4x 64,5x 772,0x 181,4x 88,8x

PSI Software AG DE 326 -28 298 1,3x 1,2x 1,2x 12,4x 9,8x 8,6x 19,3x 14,3x 12,2x

QAD Inc. US 675 -100 583 2,1x 2,3x 2,1x 54,0x 42,2x 30,1x 119,1x 91,2x 51,0x


SAP SE DE 161.952 9.453 171.494 6,1x 5,6x 5,2x 17,2x 15,4x 14,0x 20,4x 18,1x 16,2x

Synopsys, Inc. US 25.536 -79 25.469 8,4x 7,7x 7,1x 27,3x 24,0x 21,3x 31,0x 27,0x 23,4x

Workday, Inc. US 36.355 -456 35.935 11,0x 10,2x 8,8x 53,1x 44,6x 38,0x 83,7x 63,4x 50,8x

Zendesk, Inc. US 8.872 136 9.000 10,6x 8,5x 6,8x 105,6x 74,4x 50,2x 193,6x 119,9x 67,9x

Mean 122.362,0 -405,1 122.054,4 8,2 7,4 6,6 44,7 29,9 23,9 87,7 44,6 32,3

Median 25.536,2 135,9 25.468,8 8,4 7,4 6,3 27,7 24,0 21,3 31,5 27,2 24,2

Valuations in the Application Software Segment (I/II)

15





Adobe Inc. US 10.697,2 12.347,9 14.241,4 5,5% 15,4% 15,3% 47,4% 48,1% 48,4% 41,5% 42,7% 43,1%

Amadeus IT Group, S.A. ES 2.715,1 4.371,9 5.164,0 -51,5% 61,0% 18,1% 19,1% 36,6% 39,4% -12,0% 20,5% 26,7%

ANSYS, Inc. US 1.343,5 1.490,7 1.668,0 0,1% 11,0% 11,9% 42,3% 44,1% 44,1% 41,2% 42,4% 43,6%

Automatic Data Processing, Inc. US 12.901,7 11.903,8 12.709,8 3,6% -7,7% 6,8% 24,7% 22,5% 24,5% 22,0% 19,7% 22,0%

Constellation Software Inc. CA 3.344,4 3.940,7 4.474,7 7,5% 17,8% 13,6% 26,9% 27,3% 27,6% 16,6% 17,1% n.a.

Dassault Systèmes SE FR 4.554,5 5.008,3 5.394,8 12,1% 10,0% 7,7% 33,1% 33,6% 35,3% 29,4% 30,8% 32,1%

Hexagon AB (publ) SE 3.748,2 4.007,4 4.214,7 -3,8% 6,9% 5,2% 34,1% 36,2% 36,3% 23,4% 26,4% 27,0%

Intuit Inc. US 6.282,1 6.742,3 7.435,3 3,5% 7,3% 10,3% 36,0% 37,1% 37,4% 32,7% 31,9% 34,7%

Microsoft Corporation US 125.758,1 131.619,1 146.611,3 14,6% 4,7% 11,4% 46,0% 46,6% 47,3% 37,1% 37,7% 38,3%

Open Text Corporation CA 2.748,8 2.806,4 2.845,8 8,4% 2,1% 1,4% 35,3% 37,6% 39,3% 32,4% 36,0% n.a.

Oracle Corporation US 35.389,0 32.999,0 33.669,9 0,3% -6,8% 2,0% 47,1% 48,5% 49,1% 43,9% 44,9% 45,0%

Pegasystems Inc. US 895,7 1.066,9 1.259,6 8,7% 19,1% 18,1% 3,3% 7,4% 9,7% 1,1% 4,1% 7,1%

PSI Software AG DE 225,2 240,0 254,3 2,7% 6,6% 6,0% 10,7% 12,7% 13,7% 6,9% 8,7% 9,6%

QAD Inc. US 280,5 257,0 282,5 -3,2% -8,4% 9,9% 3,9% 5,4% 6,9% 1,7% 2,5% 4,0%

salesforce.com, inc. US 15.337,2 16.870,5 19.870,6 32,7% 10,0% 17,8% 28,8% 29,8% 29,9% 16,6% 16,6% 18,5%

SAP SE DE 28.292,2 30.463,0 32.847,2 2,4% 7,7% 7,8% 35,2% 36,6% 37,3% 29,8% 31,1% 32,2%

Synopsys, Inc. US 3.045,4 3.307,4 3.597,4 1,1% 8,6% 8,8% 30,6% 32,1% 33,3% 27,0% 28,5% 30,3%

Workday, Inc. US 3.261,6 3.523,7 4.106,6 32,9% 8,0% 16,5% 20,8% 22,9% 23,0% 13,2% 16,1% 17,2%

Zendesk, Inc. US 850,4 1.057,1 1.327,2 17,2% 24,3% 25,5% 10,0% 11,4% 13,5% 5,5% 7,1% 10,0%

Mean 13.772,1 14.422,3 15.893,4 5,0% 10,4% 11,3% 28,2% 30,3% 31,4% 21,6% 24,5% 26,0%

Median 3.344,4 4.007,4 4.474,7 3,6% 8,0% 10,3% 30,6% 33,6% 35,3% 23,4% 26,4% 27,0%

Valuations in the Application Software Segment (II/II)

16





Accenture plc IE 126,818 -2,639 124,718 3.4x 3.1x 2.9x 18.7x 17.7x 16.5x 22.8x 21.0x 19.4x

CGI Inc. CA 14,782 2,137 16,876 2.2x 2.1x 2.0x 11.1x 10.5x 10.4x 14.3x 13.7x 13.4x

Cognizant Technology Solutions Corporation US 31,141 -991 30,191 2.1x 2.1x 1.9x 11.8x 10.9x 10.2x 14.6x 13.1x 12.1x

EPAM Systems, Inc. US 14,960 -698 14,290 6.4x 5.3x 4.3x 34.2x 28.7x 23.2x 38.2x 31.4x 25.3x

Globant S.A. LU 6,085 -233 5,861 8.7x 7.0x 5.7x 47.0x 34.5x 27.6x 59.0x 45.9x 37.8x

HCL Technologies Limited IN 25,795 -299 25,566 3.0x 3.0x 2.7x 12.9x 11.9x 11.0x 15.5x 14.8x 13.5x

Infosys Limited IN 49,478 -2,128 47,436 4.3x 4.2x 3.8x 17.3x 16.5x 15.0x 19.7x 18.9x 17.1x

Neurones S.A. FR 593 -192 433 0.9x 0.8x 0.8x 7.5x n.a. n.a. 10.4x 9.4x 8.0x

Progress Software Corporation US 1,365 110 1,469 3.8x 3.4x 3.3x 9.5x 8.3x n.a. 9.6x 8.8x 8.4x

Mean 14,264.0 -259.7 14,044.2 3.9 3.4 3.1 18.9 17.4 16.3 22.7 19.7 17.2

Median 14,959.9 -298.9 16,876.2 3.4 3.1 2.9 12.9 14.2 15.0 15.5 14.8 13.5

Valuations in the Software Development Segment (I/II)

17




Company Country 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E

Accenture plc IE 37,143.8 39,822.1 42,717.8 -5.5% 7.2% 7.3% 18.0% 17.6% 17.7% 14.7% 14.9% 15.0%

CGI Inc. CA 7,817.0 8,103.4 8,250.5 -7.1% 3.7% 1.8% 19.5% 19.9% 19.7% 15.1% 15.2% 15.3%

Cognizant Technology Solutions Corporation US 14,079.1 14,722.3 15,549.3 -5.5% 4.6% 5.6% 18.1% 18.8% 19.0% 14.7% 15.6% 16.0%

EPAM Systems, Inc. US 2,234.8 2,692.8 3,297.6 10.0% 20.5% 22.5% 18.7% 18.5% 18.7% 16.7% 16.9% 17.1%

Globant S.A. LU 672.7 831.6 1,020.1 14.7% 23.6% 22.7% 18.5% 20.4% 20.8% 14.8% 15.3% 15.2%

HCL Technologies Limited IN 8,572.6 8,536.2 9,378.7 10.4% -0.4% 9.9% 23.1% 25.1% 24.7% 19.2% 20.2% 20.2%

Infosys Limited IN 11,146.1 11,255.5 12,343.6 5.0% 1.0% 9.7% 24.6% 25.5% 25.6% 21.6% 22.3% 22.5%

Neurones S.A. FR 499.7 524.3 558.4 -1.7% 4.9% 6.5% 11.6% n.a. n.a. 8.3% 8.8% 9.7%

Progress Software Corporation US 387.7 438.0 448.9 0.1% 13.0% 2.5% 40.0% 40.3% n.a. 39.6% 38.3% 39.0%

Mean 9,172.6 9,658.5 10,396.1 2.3% 8.7% 9.8% 21.3% 23.3% 20.9% 18.3% 18.6% 18.9%

Median 7,817.0 8,103.4 8,250.5 0.1% 4.9% 7.3% 18.7% 20.2% 19.7% 15.1% 15.6% 16.0%

Valuations in the Software Development Segment (II/II)

18





Accenture plc IE 122.248 -2.639 120.177 3,2x 3,1x 2,9x 17,8x 17,4x 16,2x 21,9x 20,6x 19,1x

adesso SE DE 366 84 450 0,9x 0,8x 0,8x 9,5x 7,9x 7,1x 18,7x 13,2x 11,4x

Allgeier SE DE 502 170 692 0,9x 0,8x 0,7x 8,0x 7,2x 6,1x 13,4x 11,1x 9,2x

Atos SE FR 8.013 2.077 10.100 0,9x 0,9x 0,9x 6,5x 6,1x 5,7x 9,9x 9,4x 8,4x

Bechtle AG DE 7.014 260 7.274 1,3x 1,2x 1,1x 21,3x 19,5x 17,9x 28,5x 24,9x 22,4x

Cancom SE DE 1.941 -314 1.627 1,0x 0,9x 0,8x 12,8x 11,0x 9,9x 22,2x 16,8x 14,1x

Capgemini SE FR 18.976 1.633 20.604 1,3x 1,2x 1,2x 9,0x 8,1x 7,4x 11,9x 10,6x 9,6x

CGI Inc. CA 15.506 2.137 17.581 2,3x 2,2x 2,1x 11,6x 11,0x 10,9x 15,0x 14,4x 13,9x

Cognizant Technology Solutions Corp. US 30.720 -991 29.784 2,1x 2,1x 2,0x 12,1x 11,0x 10,2x 14,6x 13,1x 12,1x

Computacenter plc GB 2.521 -24 2.498 0,4x 0,4x 0,4x 10,1x 10,0x 9,8x 14,6x 14,2x 13,9x

DATAGROUP SE DE 470 80 550 1,5x 1,4x 1,3x 10,8x 9,6x 8,8x 25,8x 19,5x 16,3x

Devoteam SA FR 811 -3 823 1,1x 1,0x 1,0x 9,4x 8,5x 7,1x 11,9x 10,5x 8,7x

DXC Technology Company US 3.945 7.111 10.799 0,6x 0,7x 0,7x 3,5x 4,7x 3,8x 5,5x 9,9x 7,1x

Indra Sistemas, S.A. ES 1.139 814 1.977 0,6x 0,6x 0,6x 7,2x 5,8x 5,4x 21,5x 9,3x 8,2x

Infosys Limited IN 46.401 -2.128 44.415 4,0x 4,1x 3,7x 16,2x 16,0x 14,6x 18,4x 18,2x 16,6x

International Business Machines Corp. US 93.870 49.460 140.751 2,3x 2,2x 2,2x 9,6x 9,0x 9,0x 15,1x 13,0x 12,4x

NTT DATA Corporation JP 13.757 4.572 18.464 1,0x 1,0x 1,0x 7,0x 6,9x 6,4x 14,9x 15,5x 13,5x

Sopra Steria Group SA FR 2.650 833 3.529 0,8x 0,8x 0,7x 7,8x 6,9x 6,1x 12,1x 10,7x 9,3x

Tata Consultancy Services Limited IN 97.594 -3.667 94.152 4,9x 5,3x 4,8x 18,5x 20,0x 17,8x 20,1x 22,0x 19,4x

Wipro Limited IN 17.994 -3.299 14.846 2,0x 2,2x 2,1x 9,8x 10,5x 10,2x 11,7x 12,9x 12,4x

Mean 24.321,8 2.808,3 27.054,7 1,7 1,6 1,5 10,9 10,3 9,5 16,4 14,5 12,9

Median 7.513,4 126,7 10.449,5 1,2 1,1 1,0 9,7 9,3 8,9 15,0 13,1 12,4

Valuations in the IT Service Segment (I/II)

19





Accenture plc IE 37.253,1 39.025,9 41.813,8 -5,2% 4,8% 7,1% 18,1% 17,7% 17,8% 14,7% 14,9% 15,1%

adesso SE DE 477,4 535,2 586,2 6,3% 12,1% 9,5% 10,0% 10,7% 10,7% 5,0% 6,4% 6,8%

Allgeier SE DE 813,8 874,9 946,2 4,0% 7,5% 8,1% 10,6% 11,0% 12,0% 6,3% 7,1% 7,9%

Atos SE FR 11.292,9 11.365,1 11.593,2 -2,4% 0,6% 2,0% 13,7% 14,7% 15,4% 9,1% 9,4% 10,4%

Bechtle AG DE 5.702,6 6.263,1 6.842,1 8,6% 9,8% 9,2% 6,0% 6,0% 5,9% 4,5% 4,7% 4,7%

Cancom SE DE 1.649,0 1.797,7 1.936,8 4,6% 9,0% 7,7% 7,7% 8,2% 8,5% 4,4% 5,4% 5,9%

Capgemini SE FR 15.872,0 17.127,8 17.889,7 12,3% 7,9% 4,4% 14,4% 14,8% 15,5% 10,9% 11,3% 12,0%

CGI Inc. CA 7.740,0 8.010,2 8.195,6 -8,0% 3,5% 2,3% 19,6% 20,0% 19,6% 15,1% 15,2% 15,4%

Cognizant Technology Solutions Corp. US 13.882,8 14.481,1 15.261,2 -6,9% 4,3% 5,4% 17,8% 18,8% 19,1% 14,7% 15,7% 16,1%

Computacenter plc GB 5.603,0 5.695,1 5.828,0 -7,3% 1,6% 2,3% 4,4% 4,4% 4,4% 3,1% 3,1% 3,1%

DATAGROUP SE DE 371,2 401,9 422,4 24,7% 8,3% 5,1% 13,7% 14,3% 14,8% 5,7% 7,0% 8,0%

Devoteam SA FR 761,3 794,6 856,3 -0,2% 4,4% 7,8% 11,5% 12,2% 13,5% 9,1% 9,9% 11,0%

DXC Technology Company US 17.860,5 15.139,7 14.766,0 -3,6% -15,2% -2,5% 17,1% 15,2% 19,0% 11,0% 7,2% 10,4%

Indra Sistemas, S.A. ES 3.094,3 3.196,7 3.322,6 -4,3% 3,3% 3,9% 8,9% 10,6% 11,0% 3,0% 6,7% 7,3%

Infosys Limited IN 11.146,1 10.927,5 11.959,8 5,0% -2,0% 9,4% 24,6% 25,5% 25,5% 21,6% 22,3% 22,4%

International Business Machines Corp. US 62.302,9 63.352,4 64.020,8 -9,2% 1,7% 1,1% 23,5% 24,7% 24,5% 14,9% 17,0% 17,7%

NTT DATA Corporation JP 19.208,9 18.095,4 18.780,3 12,2% -5,8% 3,8% 13,7% 14,7% 15,4% 6,4% 6,6% 7,3%

Sopra Steria Group SA FR 4.391,7 4.520,8 4.709,2 -1,5% 2,9% 4,2% 10,3% 11,3% 12,2% 6,6% 7,3% 8,1%

Tata Consultancy Services Limited IN 19.126,2 17.733,1 19.453,1 1,5% -7,3% 9,7% 26,6% 26,6% 27,2% 24,5% 24,1% 24,9%

Wipro Limited IN 7.387,8 6.776,4 7.133,1 -2,2% -8,3% 5,3% 20,4% 20,8% 20,4% 17,1% 17,0% 16,7%

Mean 12.296,9 12.305,7 12.815,8 1,4% 2,2% 5,3% 14,6% 15,1% 15,6% 10,4% 10,9% 11,6%

Median 7.563,9 7.393,3 7.664,4 -0,9% 3,4% 5,2% 13,7% 14,7% 15,4% 9,1% 8,4% 10,4%

Valuations in the IT Service Segment (II/II)

20



Valuations in the Conglomerates Segment (I/II)

21






Alphabet Inc. US 843.725 -93.247 755.557 5,2x 4,3x 3,7x 15,3x 12,3x 10,7x 27,3x 20,9x 17,4x

Cisco Systems, Inc. US 167.907 -10.652 158.244 3,8x 3,8x 3,7x 10,2x 10,6x 10,2x 11,3x 11,6x 11,1x

Facebook, Inc. US 596.287 -41.974 556.600 8,3x 6,7x 5,6x 16,5x 13,3x 10,9x 24,6x 19,2x 15,5x

Intel Corporation US 174.809 11.180 185.339 2,9x 3,0x 2,8x 6,5x 6,7x 6,1x 9,1x 9,5x 8,9x

International Business Machines Corp. US 93.870 49.460 140.751 2,3x 2,2x 2,2x 9,6x 9,0x 9,0x 15,1x 13,0x 12,4x

Microsoft Corporation US 1.353.945 -48.324 1.308.254 10,4x 9,9x 8,9x 22,6x 21,3x 18,9x 28,0x 26,3x 23,3x

Oracle Corporation US 143.096 27.574 169.393 4,8x 5,1x 5,0x 10,2x 10,6x 10,3x 10,9x 11,4x 11,2x


SAP SE DE 161.952 9.453 171.494 6,1x 5,6x 5,2x 17,2x 15,4x 14,0x 20,4x 18,1x 16,2x

Mean 387.015,3 -9.950,0 377.746,6 7,1 6,4 5,8 17,8 16,0 14,2 24,7 21,8 18,6

Median 171.358,0 -1.485,2 176.472,0 5,6 5,4 5,1 15,9 12,8 10,8 22,5 18,6 15,9



Adobe Inc. US 10.697,2 12.347,9 14.241,4 5,5% 15,4% 15,3% 47,4% 48,1% 48,4% 41,5% 42,7% 43,1%

Alphabet Inc. US 144.929,8 173.848,5 202.452,9 0,0% 20,0% 16,5% 34,1% 35,3% 35,0% 19,1% 20,8% 21,5%

Cisco Systems, Inc. US 41.620,1 41.591,7 43.082,9 -10,7% -0,1% 3,6% 37,4% 36,0% 35,8% 33,5% 32,8% 33,1%

Facebook, Inc. US 67.276,9 83.166,4 99.417,9 7,1% 23,6% 19,5% 50,2% 50,3% 51,4% 33,6% 34,9% 36,1%

Intel Corporation US 63.113,6 62.147,9 65.243,3 -0,2% -1,5% 5,0% 44,9% 44,3% 46,5% 32,2% 31,3% 32,0%

International Business Machines Corp. US 62.302,9 63.352,4 64.020,8 -9,2% 1,7% 1,1% 23,5% 24,7% 24,5% 14,9% 17,0% 17,7%

Microsoft Corporation US 125.758,1 131.619,1 146.611,3 14,6% 4,7% 11,4% 46,0% 46,6% 47,3% 37,1% 37,7% 38,3%

Oracle Corporation US 35.389,0 32.999,0 33.669,9 0,3% -6,8% 2,0% 47,1% 48,5% 49,1% 43,9% 44,9% 45,0%

salesforce.com, inc. US 15.337,2 16.870,5 19.870,6 32,7% 10,0% 17,8% 28,8% 29,8% 29,9% 16,6% 16,6% 18,5%

SAP SE DE 28.292,2 30.463,0 32.847,2 2,4% 7,7% 7,8% 35,2% 36,6% 37,3% 29,8% 31,1% 32,2%

Mean 59.471,7 64.840,6 72.145,8 4,2% 7,5% 10,0% 39,4% 40,0% 40,5% 30,2% 31,0% 31,7%

Median 51.961,5 51.869,8 53.551,8 1,4% 6,2% 9,6% 41,1% 40,4% 41,9% 32,9% 32,0% 32,6%

Valuations in the Conglomerates Segment (II/II)

22



3,1x2,2x 2,7x 2,3x

3,4x

7,0x

3,5x2,6x

3,9x3,2x 2,5x

4,5x3,4x 2,7x

12,7x

16,2x17,9x

15,4x 15,0x 15,4x

17,7x

15,6x

18,4x

15,1x 14,6x 15,0x16,5x

11,0x

Q12017

Q22017

Q32017

Q42017

Q12018

Q22018

Q32018

Q42018

Q12019

Q22019

Q32019

Q42019

Q12020

Q22020

EV/Revenue EV/EBITDA

177

198

172

189 194 197 208 185

199 199 191 162

31 28 17 34 29 25 31 26 22 31 31 16

Q317

Q417

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Q120

Q220

Strategic Financial

1

8

24

63

6

2 35 7

1

Q317

Q417

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Q120

Q220

550 521

561 578

570 599

593 584

624 635

567 462

71 69 56 81 49 72 60 58 68 67 68 37

Q317

Q417

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Q120

Q220

Strategic Financial

1321 17 14

45

61

29 2733

24 23

5

Q317

Q417

Q118

Q218

Q318

Q418

Q119

Q219

Q319

Q419

Q120

Q220

Deal Dashboard

23

Application and system software market

Selected global transactions

Quarterly multiples between 2017 and Q2 2020 Top 10 - Most active global buyers 2016 – Q2 2020

Buyer Target Amount

€820m

€362m

€126m

€69m

n.a.

n.a.

n.a.

Selected European transactions

Buyer Target Amount

€394m

€225m1

€91m

€24m

n.a.

n.a.

n.a.

Global M&A volume in EUR bn Europe M&A volume in EUR bn

Global M&A Deal Count Europe M&A deal count

Source: CIQ, Merger Market

Deal Count Deal volume in EUR bn

September 2020

IBM 35.7

Broadcom Inc. 32.5

salesforce.com, inc. 32.4

Thoma Bravo, LLC 18.8

Vista Equity Partners LLC 15.8

Intel Corporation 15.5

GIC Pte. Ltd. 12.8

Qatar Investment 12.5

Hellman & Friedman LLC 11.9

Canada Pension Plan 11.0

Thoma Bravo, LLC 29

Vista Equity Partners LLC 20

Cisco Systems, Inc. 16

salesforce.com, inc. 14

VMware, Inc. 14

Insight Venture 13

Marlin Equity Partners 13

Oracle Corporation 12

Hg Capital LLP 12

Diligent Corporation 11

1) Acquisition of SAP‘s Digital Solutions Business

EV EV EV EV

Date Target company Country Buyer Target Description mEUR' Revenue EBITDA EBIT

30.06.2020

DGB Group NV (54% Stake)

Netherlands

Majka Investments BV

Developer of software solutions for the agricultural sector n.a. n.a. n.a. n.a.

30.06.2020

Christiaens NV (50% Stake)

Belgium

Sofindev

Belgium-based provider of IT services n.a. n.a. n.a. n.a.

30.06.2020

FuturMaster

France

Cathay Capital Private Equity

Provider of artificial intelligence (AI) augmented supply chain software n.a. n.a. n.a. n.a.

25.06.2020

Eggplant Ltd.

United Kingdom

Keysight Technologies, Inc.

Provider of automated software testing tools 293.9 7.0 n.a. n.a.

24.06.2020

medondo AG (83% Stake)

Germany

Amalphi AG

Developer of cloud-based software solutions for the medical sector n.a. n.a. n.a. n.a.

24.06.2020

matrix technology AG

Germany

Ufenau Capital Partners AG

Germany-based IT services provider n.a. n.a. n.a. n.a.

23.06.2020

Netrics AG

Switzerland

Tineo AG

Workplace cloud and digitalization consultancy company n.a. n.a. n.a. n.a.

22.06.2020

IT-Hantverkarna (80% Stake)

Sweden

ECIT Services AB

Provider of IT installation and maintenance services n.a. n.a. n.a. n.a.

22.06.2020

Sweagle NV

Belgium

ServiceNow, Inc.

Belgium-based company engaged in providing platform to manage & validate configured data 23.8 n.a. n.a. n.a.

22.06.2020

Technogroup IT-Service GmbH

Germany

Evernex

Germany-based provider of information technology services n.a. n.a. n.a. n.a.

Selected Transactions (I/V)

24

Q2 2020 with a focus on European MidCap transactions

September 2020

EV EV EV EV


21.06.2020

WhiteQuest SAS

France

Assystem SA

Developer of virtual simulation tools n.a. n.a. n.a. n.a.

16.06.2020

GMS Development GmbH

Germany

VR Equitypartner GmbH

Provider of cloud-based CRM software for after sales and field service management solutions n.a. n.a. n.a. n.a.

16.06.2020

Itomic Voice & Data Ltd.

Ireland

Calligo Limited

Ireland-based IT managed services provider n.a. n.a. n.a. n.a.

11.06.2020

Copperfasten Technologies Ltd.

Ireland

Living Bridge LLP

Ireland-based provider of cloud security services n.a. n.a. n.a. n.a.

10.06.2020

Qualtera

France

Synopsys, Inc.

Provider of integrated enterprise solutions for Big Data Analytics (BDA) n.a. n.a. n.a. n.a.

09.06.2020

Everoad SAS

France

sennder GmbH

France-based company that connects companies with certified transport firms and provides a quote for the delivery of their goods by road

n.a. n.a. n.a. n.a.

04.06.2020

Xperthis SA

Belgium

Infohos Solutions NV

Belgium-based provider of software solutions for hospitals n.a. n.a. n.a. n.a.

29.05.2020

Exebenus AS

Norway

Sumitomo Corporation

Provider of digitalized information exchange software solutions for oil and gas companies n.a. n.a. n.a. n.a.

28.05.2020

AVM Impact Ltd

United Kingdom

Kinly Netherlands B.V.

UK-based global solutions partner for audio visual, video conferencing and digital media n.a. n.a. n.a. n.a.

28.05.2020

Freepik Company SL

Spain

EQT Partners AB

Provider of digital visual content 250.0 8.3 20.8 n.a.

Selected Transactions (II/V)

25


September 2020

EV EV EV EV


26.05.2020

Cherry GmbH

Germany

Argand Partners LP

Manufacturer of computer input devices 200.0 n.a. n.a. n.a.

21.05.2020

Connexas

United Kingdom

AddSecure AB

Technology company providing connected vehicle and mobile worker solutions to commercial vehicle fleets

n.a. n.a. n.a. n.a.

20.05.2020

Topicus B.V.

Netherlands

Total Specific Solutions B.V.

Netherlands-based company providing software for various business needs. n.a. n.a. n.a. n.a.

19.05.2020

xdot GmbH

Germany Elvaston Capital Management GmbH

Germany-based company that develops individual IT and technology solutions in the areas of cloud, mobile and portals

n.a. n.a. n.a. n.a.

19.05.2020

Kaiku Health Oy

Finland

Elekta AB

Developer of patient monitoring software for healthcare providersc n.a. n.a. n.a. n.a.

19.05.2020

Softomotive UK Limited

United Kingdom

Microsoft Corporation

Provider of robotic process automation (RPA) software solutions n.a. n.a. n.a. n.a.

14.05.2020

Metaswitch Networks Limited

United Kingdom

Microsoft Corporation

Provider of cloud native communications software solutions n.a. n.a. n.a. n.a.

12.05.2020

Brand ID SpA

Italy

Vinci Energies Italia S.r.l.

Provider of services and solutions in the sectors of IT and digital communication n.a. n.a. n.a. n.a.

11.05.2020

Corilus NV

Belgium

Gilde Buy Out Partners B.V.

Developer of software and hardware for the healthcare sector n.a. n.a. n.a. n.a.

07.05.2020

Brennus Analytics SAS

France

Price f(x) AG

Developer of pricing optimization software based on AI technology for the B2B environment n.a. n.a. n.a. n.a.

Selected Transactions (III/V)

26


September 2020

EV EV EV EV


04.05.2020

Moovit App Global Ltd

Israel

Intel Corporation

Israel-based developer of a public transport application for iPhone and Android

820.2 n.a. n.a. n.a.

30.04.2020

Interia.pl S.A

Poland

Telewizja Polsat Sp. z o.o.

Internet portal service provider 92.9 n.a. n.a. n.a.

23.04.2020

ProLeiT AG

Germany

Schneider Electric SE

Provider of process control systems for industrial processes automation n.a. n.a. n.a. n.a.

15.04.2020

Castleton Technology PLC

United Kingdom

MRI Software LLC

IT communication services company delivering network management and Internet solutions for businesses and public sector organizations

91.1 n.a. n.a. n.a.

15.04.2020

Onfido Limited

United Kingdom

TPG Capital LP

UK-based provider of platform for identity and background checks n.a. n.a. n.a. n.a.

14.04.2020

Groupe JVS

France

Parquest Capital; Bpifrance

France-based company engaged in software publishing and the provision of IT solutions n.a. n.a. n.a. n.a.

14.04.2020

SuperOffice AS

Norway

Axcel Management A/S

Developer of customer relationship management systems for small to medium sized business.

89.3 n.a. n.a. n.a.

09.04.2020

Namirial S.p.A. (70% Stake)

Italy

Ambienta Sgr SpA

Software house engaged in digital management transactions, signature validation and archive management

140.0 3.0 10.0 n.a.

09.04.2020

Avira GmbH

Germany

Investcorp

Provider of anti-virus and self-developed security solutions for professional and private use n.a. n.a. n.a. n.a.

07.04.2020

Next Generation Data Limited

United Kingdom

Vantage Data Centers LLC

UK-based data centre operator n.a. n.a. n.a. n.a.

Selected Transactions (IV/V)

27


September 2020

EV EV EV EV


06.04.2020

Double First Ltd

United Kingdom

Education Horizons Group

UK-based international school software provider n.a. n.a. n.a. n.a.

02.04.2020

Screening Eagle Technologies

Switzerland

EDBI Pte Ltd

Provider of software connecting sensors, software, and data for intelligent inspection of assets and

infrastructuren.a. n.a. n.a. n.a.

02.04.2020Connected Information Systems B.V.

Netherlands

Signicat AS

Developer of software for online identification, authentication and authorisation n.a. n.a. n.a. n.a.

Selected Transactions (V/V)

28


September 2020

38

2 15 5 4 2 2

72

4 51 2 3

4

94

2 3 1 1 21

3

9

5

3 34 1 2

3

1

1

2 1 11

29

20

13 13 1210 9 9 8

2016 2017 2018 2019 2020

3

7

2

6

24

2 35

4

2

2

2

3

3 2

4

1

42

2

3

41

3 2 32

4

36 1 1

13 0

1

2 21

2 3 1 2 1

16

14 14

1211 11

10 10 109

2016 2017 2018 2019 2020

Buyer Universe

29

Strategic & financial acquirers in the application and system software market

Most active strategic buyers of targets in the software sector by deal count, 2016 – Q2 2020

Most active financial investors of targets in the software sector by deal count, 2016 – Q2 2020

▪ In total, the 10 most active strategic buyers have closed 117 transactions between 2016 and Q2 2020

▪ Cisco accounted for most of the acquisitions in the area of application and system software with 16 transactions

▪ In Q2 2020 Microsoft andTeam System were the most active strategic buyers with 3 transactions

▪ In total, the 10 most active financial investors have closed 123 transactions between 2016 and Q2 2020

▪ Thoma Bravo accounted for most of the acquisitions in the area of application and system software with 29 transactions

▪ In Q2 2020 no financial investor closed more than 1 transaction


Agenda

September




IMAP is specialized on mid-cap M&A transactions for privately owned companies

September 2020 31

With over 200 transactions annually, we are one of the leading M&A advisors globally

Our Values:

Execution Dedication

TalentInformality

Rank Advisor # Deals

#1 Rothschild & Co 37

#2 Lincoln International 31

#3 IMAP 25

#4 UniCredit 24

#5 Falkensteg GmbH 20

#6 Clairfield International 19

#7 Concentro Management AG 18

#8 JP Morgan 16

#9 Macquarie Group 15

#10 Lazard 15

IMAP is a global, integrated and focused platform with 60 offices and more than 500 professionals worldwide

Global M&A-Organization

with 60 offices in 43 countries

c. 500 employeesthereof 40 in

Germany

Ø 220 transactions per year

thereof c. 20-25 in Germany

ca. 80% company sales

Transaction volume p.a. c. 13

bn - Ø deal value c.

60 mn

Successful since 1997

in the German market

23

Managed by partners with long-term experience,

who are only responsible to the

customer

International sector teams

operating on a global IT platform

Among Top 10 M&A firmsin relevant

industry rankings

League Table M&A Advisor in Germany 2019 (# Deals)1)

Note 1: Thomson Reuters League Table 2019; Number of deals with German participation up to USD 500 million; excl. WPs

IMAP International Over 70 international transactions with around 500 professionals in 43 countries completed in 2019

September 2020 32

Global partnership Transactions by sectors (2019 - # Deals: 234)

Publications

18%

15%

12%

11%8%

7%

5%

5%

3%

16%

Technology

Industrials

Consumer & Retail

Healthcare

Business Services

Food & Beverage

Building Products

Transport & Logistics

Automotive

others

International presence

IMAP Germany

▪ Combining local knowledge and contacts in the most important international markets

▪ Standardized, IMAP-wide working routines regarding market developments and market opportunities

▪ Globally rotating IMAP conferences & symposia

▪ International sector- and project teams

▪ Resources and knowledge pool for all sector specific projects

▪ Access to all relevant national and international databases

Europe & Africa ▪ 24 offices in the EU▪ 1 office each in UK, Turkey, Serbia and Bosnia and

Herzegovina▪ 9 offices in Africa▪ over 280 M&A professionals

North and South America▪ 17 offices in USA, 2 offices in Canada ▪ 1 office each in Argentina, Brazil, Chile, Colombia,

Mexico and Peru▪ over 170 M&A professionals

Asia▪ 2 offices in Japan, 1 office each in China and India▪ over 50 M&A professionals

IMAP Global Technology TeamGlobally active with experienced sector experts

September 2020 33

Expert team Germany

# dealmakers: >30

International sector cooperation IMAP Technology Deal Statistics

IMAP Germany Technology Team

Expert team Nordics

# dealmakers: >15

Expert team BeNeLux

# dealmakers: >40

Expert team Asia

# dealmakers: >20

Expert team UK & Ireland

# dealmakers: >10

Ø approx. 20 deals p.a.

Ø deal value approx. EUR 69 mn

206 deals in the technology sector since 2010

Dr. Carsten LehmannManaging [email protected]

Nils [email protected]

Martin [email protected]

Lennart [email protected]

Deal split by Technology sub-sector1

1) 2010 - Q1 2020

Expert team South America

# dealmakers: >35

Expert team France

# dealmakers: >25

Expert team S/E Europe

# dealmakers: >60

Expert team North America

# dealmakers: >100

Internet Software &services

IT Consulting & services

Other High Tech

Telecommunications

Software

216Deals

https://www.google.de/url?sa=i&url=https%3A%2F%2Fwww.shutterstock.com%2Fde%2Fsearch%2Fgroup%2Bicon&psig=AOvVaw0qyjhCv17lwaudq_qvexcE&ust=1586524872035000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCLimrPG32-gCFQAAAAAdAAAAABAD









September 2020 34

IMAP IT/Software DealsSelected IMAP international deals since 2018

Advisor to EI Towers

Acquired 100%

Advisor to Promedico

Acquired Investment Interest

Advisor to Shoper

Acquired 100%

Advisor to Highland

Acquired a Majority Stake

Advisor to TSS

Acquired 100%

Advisor to neurio

Acquired 100%

Advisor to Lomitel

Acquired 50%

Advisor to Teletronika

Acquired 100%

Advisor to Maximum

Acquired 100%

Advisor to HFM

Acquired 100%

Advisor to Cedacri

Acquired Majority Control

Advisor to Chatmeter

Strategic investment

Acquired 100%

Advisor to ITS Security

Advisor to ArtOrigo

Acquired Minority Shares

Advisor to Omegatech

Acquired 100%

Advisor to WinBooks

Acquired 100%

Advisor to Smulweb

Acquired 100%

Advisor to Trustteam

Acquired Majority Control

Advisor to ISONAS

Acquired 100%

Advisor to loopup

Acquired 100%Acquired 100%

Advisor to APS

Acquired 100%

Advisor to RS

Acquired 100%

Advisor to Canorama

Acquired 100%

Advisor to Cyfrowy Advisor to ETC

Has been acquired in an MBO from

Acquired a Minority stake

Advisor to AOE

Advisor to Catalysts

A Portfolio Company of

Acquired 100%

Advisor to INOBAS

Acquired 100%

Advisor to SemVox

Acquired 100%

Advisor to Ametras

Acquired 100%

Advisor to Onlime

Acquired Satellite Services Business

Advisor to Awetis

Acquired 100%

IMAP M&A Consultants AG

35

Offices

September 2020

IMAP M&A Consultants AG

Mannheim

Harrlachweg 1

68163 Mannheim

Telefon: +49 621 3286-0

Fax: +49 621 3286-100

E-mail: [email protected]

Internet: www.imap.de

Frankfurt am Main

Junghofstraße 2460311 Frankfurt am MainTelefon: +49 69 2999276-600

München

Bernhard-Wicki-Straße 380636 MünchenTelefon: +49 89 5402273-0

q2/20 sector report digital technology software and it

Documents