software industry update q3 2013 - vista point...

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Software Industry Update

Q3 2013

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http://www.victorypharma.com/index.shtml

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Q3 2013 Software Industry Overview

• Despite indications of a recovering environment, with the exception of a few large acquisitions, Q3 2013 was

relatively quiet, posting low reported transaction numbers despite high cash reserves on public balance sheets

- Software M&A in Q3 2013 totaled 207 reported transactions for a cumulative value of $22 billion, down

year over year in number of transactions but up in reported value roughly 28%

- High growth software companies, largely comprised of SaaS businesses, furthered its market lead as

other software indices lagged

- High growth software is up 229% since 2010 as compared to the NASDAQ’s 63% return over the same

time period

• Cloud application businesses led the initial public offering (IPO) charge in Q3 2013 with six of seven companies

that IPO’d this quarter describing themselves as cloud-based

- Collectively, seven companies raised $806 million in Q3 2013 IPOs, down slightly from $812 million in

Q2 2013

- Software IPOs in Q3 2013 have performed well with an average return since pricing of 45%, leading to

increased investor appetite for new issuances in the back half of 2013

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Source: Capital IQ as of 9/30/13

Notable Recent Transactions

Deals <$1bn

Deals >$1bn

Acquirer

Target

Date 7/23/13 7/23/13 8/7/13 8/23/13 9/30/13

EV $1,630m $2,190m $400m $800m $800m

EV / LTM Rev 5.8x 8.9x N/A N/A 1.8x

EV / LTM EBITDA 18.5x 118.8x N/A N/A 60.5x

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Software M&A Market Overview


Quarterly Software M&A Value and Deal Count (Since 2008)

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Enterprise Target LTM Enterprise Value / Date Target Acquirer Delivery Sector Value Revenue EBITDA LTM Revenue LTM EBITDA

09/30/2013 The Active Network Vista Equity Partners SaaS Content Delivery & Management $800.3 $441.3 $13.2 1.8x N/M

09/26/2013 SaaSID Intermedia.net SaaS Security N/A N/A N/A N/A N/A

09/26/2013 LearnBoost Automattic SaaS Content Delivery & Management N/A N/A N/A N/A N/A

09/25/2013 RMS Systems Phoenix Technology Services SaaS Business Software 30.6 6.2 (2.5) 4.9 N/M

09/24/2013 Indusoft Invensys On Premise Business Software N/A N/A N/A N/A N/A

09/23/2013 Official Payments Holdings ACI Worldwide On Premise Fintech 107.9 140.8 3.7 0.8 29.0x

09/23/2013 BlackBerry Hamblin Watsa Investment Counsel On Premise Business Software 1,814.8 11,336.0 1,318.0 0.2 1.4

09/23/2013 VINtek Dealertrack Technologies On Premise Fintech 53.4 N/A N/A N/A N/A

09/23/2013 Cakewalk Gibson Brands On Premise Diversified Media N/A N/A N/A N/A N/A

09/20/2013 MarketMaker4 Xchanging On Premise Supply Chain 22.0 N/A N/A N/A N/A

09/19/2013 Empathica Mindshare Technologies On Premise CRM N/A N/A N/A N/A N/A

09/19/2013 Daeja Image Systems IBM On Premise Content Delivery & Management N/A N/A N/A N/A N/A

09/17/2013 TopCoder Appirio SaaS Platform N/A N/A N/A N/A N/A

09/17/2013 Adept Cloud Hightail SaaS Systems / Network N/A N/A N/A N/A N/A

09/17/2013 ISD Technologies Daily Journal On Premise Content Delivery & Management 16.0 N/A N/A N/A N/A

09/16/2013 The QWeMA Group CANNEX Financial Exchanges On Premise Fintech N/A N/A N/A N/A N/A

09/16/2013 Anchor Box eFolder SaaS Content Delivery & Management N/A N/A N/A N/A N/A

09/16/2013 Portfolio Director Scivantage SaaS Fintech N/A N/A N/A N/A N/A

09/16/2013 Spigit Mindjet SaaS Platform N/A N/A N/A N/A N/A

09/16/2013 BugSense Splunk SaaS Business Intell igence N/A N/A N/A N/A N/A

09/16/2013 American Cadastre Riverside Partners On Premise Content Delivery & Management N/A N/A N/A N/A N/A

09/16/2013 JCurve Solutions Stratatel SaaS Accounting / ERP 4.4 N/A N/A N/A N/A

09/12/2013 Enterasys Networks Extreme Networks On Premise Security 180.0 330.0 N/A 0.5 N/A

09/12/2013 BondDesk Tradeweb Markets On Premise Fintech N/A N/A N/A N/A N/A

09/12/2013 Data Agent Confluence Technologies SaaS Fintech N/A N/A N/A N/A N/A

09/12/2013 RoamEx TNS On Premise Business Software N/A N/A N/A N/A N/A

09/12/2013 Make Sence Core-Comm Holdings On Premise Platform N/A N/A N/A N/A N/A

09/11/2013 Enclarity LexisNexis Risk Solutions SaaS Content and Services N/A N/A N/A N/A N/A

09/10/2013 KXEN SAP SaaS Business Intell igence N/A N/A N/A N/A N/A

09/10/2013 NetIDEAS PTC SaaS Content and Services N/A N/A N/A N/A N/A

09/10/2013 Standing Cloud Origo Networks SaaS Platform N/A N/A N/A N/A N/A

09/10/2013 Asure Software Active Data Exchange SaaS Business Software N/A N/A N/A N/A N/A

09/10/2013 Syncada U.S. Bancorp SaaS Fintech N/A N/A N/A N/A N/A

09/10/2013 TOT Group Net Element International SaaS Retail Software N/A N/A N/A N/A N/A

09/10/2013 Distribution Networks Merriman Capital On Premise Fintech 0.5 N/A N/A N/A N/A

09/09/2013 Valuation Vision Zaio Corp On Premise Fintech N/A N/A N/A N/A N/A

09/09/2013 Solus Industries Trailblazer Resources On Premise Platform 8.4 N/A N/A N/A N/A

09/09/2013 Safeharbor Knowledge Solutions Enghouse Systems SaaS Content Delivery & Management N/A N/A N/A N/A N/A

09/09/2013 Knowillage Desire2Learn SaaS Integration / Middleware N/A N/A N/A N/A N/A

09/06/2013 Airvana Ericsson On Premise Systems / Network N/A N/A N/A N/A N/A

09/05/2013 Lifestyle Services Group Assurant On Premise Security 166.8 194.8 N/A 0.9 N/A

09/05/2013 Databorough Fresche Solutions On Premise Business Intell igence N/A N/A N/A N/A N/A

09/05/2013 CAPE Systems ESKO-Graphics On Premise Supply Chain N/A N/A N/A N/A N/A

09/05/2013 Colortrac Contex On Premise Content Delivery & Management N/A N/A N/A N/A N/A

Q3 2013 Announced M&A Transactions

Note: $ in Millions. EV/EBITDA multiples in excess of 50x or less than 0x are considered not meaningful. Source: Capital IQ as of 9/30/13

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09/05/2013 Revere Data FactSet Research Systems SaaS Business Intell igence 15.4 N/A N/A N/A N/A

09/05/2013 SystemMetrics Hawaiian Telcom Services On Premise Content and Services 16.0 8.0 N/A 2.0x N/A

09/05/2013 Mitchell International Kohlberg Kravis Roberts On Premise Business Software 1,000.0 N/A N/A N/A N/A

09/04/2013 Safe Technology Dassault Systemes On Premise Business Software N/A N/A N/A N/A N/A

09/04/2013 ILS Technology Telit Wireless Solutions SaaS Integration / Middleware 8.5 N/A N/A N/A N/A

09/04/2013 Easy2 Technologies Answers Corporation SaaS Ecommerce N/A N/A N/A N/A N/A

09/04/2013 Saffron Digital Cinram Group SaaS Content Delivery & Management 47.0 N/A N/A N/A N/A

09/04/2013 ACT Teleconferencing American Teleconferencing Services SaaS Content Delivery & Management 44.0 N/A N/A N/A N/A

09/04/2013 Pogby BizBash Media SaaS Content and Services N/A N/A N/A N/A N/A

09/04/2013 Gradient Amobee SaaS Business Intell igence 15.0 N/A N/A N/A N/A

09/03/2013 Packetloop Arbor Networks SaaS Business Intell igence N/A N/A N/A N/A N/A

09/03/2013 Digium Cloud Services Digium SaaS Content Delivery & Management N/A N/A N/A N/A N/A

09/03/2013 ChemSW Accelrys SaaS Business Software 15.3 N/A N/A N/A N/A

09/03/2013 E-Markets Cultura Technologies SaaS Supply Chain N/A N/A N/A N/A N/A

09/03/2013 Westbrook Technologies DocuWare On Premise Content Delivery & Management N/A N/A N/A N/A N/A

09/03/2013 Actix Amdocs On Premise Business Intell igence 120.0 N/A N/A N/A N/A

08/30/2013 WIMM Labs Google On Premise Development N/A N/A N/A N/A N/A

08/28/2013 Preferred Appraisal Accurate Group On Premise Business Software N/A N/A N/A N/A N/A

08/28/2013 Wiredset Twitter On Premise Advertising and Marketing N/A N/A N/A N/A N/A

08/27/2013 Mobise EagleView Technologies On Premise Business Software N/A N/A N/A N/A N/A

08/23/2013 AxisPointe Herbert L. Jamison & Co. SaaS Business Software N/A N/A N/A N/A N/A

08/23/2013 BPL Global Qualitrol Company On Premise Systems / Network N/A N/A N/A N/A N/A

08/23/2013 Omnitracs Vista Equity Partners SaaS Business Software 800.0 N/A N/A N/A N/A

08/22/2013 Singly Appcelerator On Premise Development N/A N/A N/A N/A N/A

08/22/2013 Crescent House Publishing Sephora On Premise Advertising and Marketing N/A N/A N/A N/A N/A

08/22/2013 JackBe Corporation Software AG SaaS Business Intell igence N/A N/A N/A N/A N/A

08/21/2013 Avectra Abila On Premise CRM N/A N/A N/A N/A N/A

08/21/2013 Equator Altisource Portfolio Solutions SaaS Ecommerce 150.0 N/A N/A N/A N/A

08/21/2013 Elypsis WineDirect On Premise Accounting / ERP N/A N/A N/A N/A N/A

08/20/2013 Simplex GTP Bottomline Technologies SaaS Accounting / ERP 11.0 N/A N/A N/A N/A

08/20/2013 GoExpo Core-apps On Premise Business Software N/A N/A N/A N/A N/A

08/20/2013 Time Link International Kronos SaaS Human Capital N/A N/A N/A N/A N/A

08/20/2013 CPC Computer Prompting & Captioning Telestream On Premise Diversified Media N/A N/A N/A N/A N/A

08/20/2013 Alert Logic Welsh, Carson, Anderson & Stowe SaaS Security N/A 43.0 N/A N/A N/A

08/19/2013 AccountAbility Access Enprise Group SaaS Human Capital N/A N/A N/A N/A N/A

08/19/2013 CETAC Technologies Teledyne Instruments On Premise Business Software N/A N/A N/A N/A N/A

08/19/2013 Locu The Go Daddy Group SaaS Content Delivery & Management N/A N/A N/A N/A N/A

08/19/2013 iMakeNews The Reynolds and Reynolds Company SaaS Advertising and Marketing N/A N/A N/A N/A N/A

08/19/2013 FM Solutions Verisae SaaS Accounting / ERP N/A N/A N/A N/A N/A

08/18/2013 GiftWorks FirstGiving On Premise Accounting / ERP N/A N/A N/A N/A N/A

08/17/2013 Red Moon Solutions CCH SaaS Accounting / ERP N/A N/A N/A N/A N/A

08/16/2013 Advanced Software Design ARGO Data Resource Corporation On Premise Business Software N/A N/A N/A N/A N/A

08/16/2013 SigmaGenix Services Thomson Reuters On Premise Accounting / ERP N/A N/A N/A N/A N/A

08/15/2013 Trusteer IBM On Premise Security N/A N/A N/A N/A N/A

Q3 2013 Announced M&A Transactions (cont.)


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08/15/2013 Isotrak Lyceum Capital Partners On Premise Human Capital N/A N/A N/A N/A N/A

08/14/2013 Precog RichRelevance SaaS Business Intell igence N/A N/A N/A N/A N/A

08/13/2013 Catan Marketing Sanderson Group On Premise Accounting / ERP 1.0 1.4 N/A 0.7x N/A

08/13/2013 Get Me In The Inbox The Annuitas Group On Premise Advertising and Marketing N/A N/A N/A N/A N/A

08/13/2013 CPAS Systems Xerox On Premise Accounting / ERP N/A N/A N/A N/A N/A

08/12/2013 RhinoSEO Xtari SaaS Advertising and Marketing N/A N/A N/A N/A N/A

08/10/2013 Four Soft Transport I.T. Solutions On Premise Supply Chain 0.3 N/A N/A N/A N/A

08/09/2013 Armorize Technologies Proofpoint SaaS Security 25.0 N/A N/A N/A N/A

08/07/2013 Vizibil ity ALL-STATE International SaaS Business Software N/A N/A N/A N/A N/A

08/07/2013 Adap.tv AOL SaaS Advertising and Marketing 405.0 N/A N/A N/A N/A

08/07/2013 Infochimps Computer Sciences Corporation SaaS Business Intell igence N/A N/A N/A N/A N/A

08/07/2013 Total Payroll Services Inova Payroll SaaS Human Capital N/A N/A N/A N/A N/A

08/07/2013 WorldCompliance LexisNexis Risk Solutions SaaS Content and Services N/A N/A N/A N/A N/A

08/07/2013 Causata NICE Systems On Premise Business Intell igence N/A N/A N/A N/A N/A

08/07/2013 eInstruction Turning Technologies SaaS Knowledge / Content N/A N/A N/A N/A N/A

08/06/2013 VisPower Technology 3D Systems SaaS Business Software N/A N/A N/A N/A N/A

08/06/2013 Partnerpedia Solutions BMC Software SaaS Business Software N/A N/A N/A N/A N/A

08/06/2013 Engineering, Planning And Management Fort Point Capital On Premise Compliance Software N/A N/A N/A N/A N/A

08/06/2013 Avelo FS Holdings IRESS Limited On Premise Business Software 320.4 85.3 N/A 3.8 N/A

08/06/2013 Dynamite Data Market Track SaaS Ecommerce N/A N/A N/A N/A N/A

08/06/2013 Asset Control Systems Marlin Equity Partners On Premise Accounting / ERP N/A N/A N/A N/A N/A

08/06/2013 Eclipse Marketing Stericycle On Premise CRM N/A N/A N/A N/A N/A

08/05/2013 Sneaky Games Seal Gaming SaaS Gaming 1.3 N/A N/A N/A N/A

08/05/2013 Locomatix Twitter On Premise Business Intell igence N/A N/A N/A N/A N/A

08/02/2013 Teletrac Danaher SaaS Business Software N/A N/A N/A N/A N/A

08/02/2013 RWD Genting Americas On Premise Development N/A N/A N/A N/A N/A

08/02/2013 Northwest Signal Supply Signal Group On Premise Systems / Network N/A N/A N/A N/A N/A

08/02/2013 RockMelt Yahoo! SaaS Diversified Media N/A N/A N/A N/A N/A

08/01/2013 E3 Technologies I-Evolve On Premise Development N/A N/A N/A N/A N/A

08/01/2013 FTR Record Holdings On Premise Content Delivery & Management 5.6 N/A N/A N/A N/A

08/01/2013 Statseeker Techniche; NBC Capital On Premise Systems / Network 6.0 N/A N/A N/A N/A

07/31/2013 Gaffey and Associates HealthTech Solutions Group SaaS Accounting / ERP N/A N/A N/A N/A N/A

07/31/2013 Kapow Software Kofax SaaS Business Intell igence 47.5 15.9 (2.2) 3.0 N/M

07/31/2013 In4systems Orchard Information Systems On Premise Business Software N/A N/A N/A N/A N/A

07/31/2013 SwiftVM SupremeBytes SaaS Systems / Network N/A N/A N/A N/A N/A

07/31/2013 Mandata Synova Capital SaaS Supply Chain N/A N/A N/A N/A N/A

07/31/2013 Lexity Yahoo! SaaS Ecommerce N/A N/A N/A N/A N/A

07/30/2013 Veeam Software Insight Venture Partners SaaS Systems / Network N/A N/A N/A N/A N/A

07/30/2013 Tech 7 Systems Interactive Leisure Systems SaaS Content Delivery & Management N/A 0.7 N/A N/A N/A

07/29/2013 IEG Add On Systems On Premise Supply Chain N/A N/A N/A N/A N/A

07/29/2013 The Portland Group Compiler Technology NVIDIA Corporation On Premise Development N/A N/A N/A N/A N/A

07/28/2013 YCD Atmosphere Virtual Atmosphere On Premise Content Delivery & Management 2.8 N/A N/A N/A N/A

07/26/2013 Activision Blizzard Leonard Green & Partners SaaS Gaming 10,650.7 4,984.0 1,876.0 2.1 5.7x

07/25/2013 Intelligent Power Blue Earth SaaS Business Intell igence 4.1 N/A N/A N/A N/A



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07/25/2013 VerticalResponse Deluxe Corporation SaaS Business Software 27.3 25.1 N/A 1.1x N/A

07/25/2013 Abaca Technology Proofpoint On Premise Security 2.5 N/A N/A N/A N/A

07/25/2013 Battlezone Franchise Rebellion Interactive On Premise Gaming 0.6 N/A N/A N/A N/A

07/25/2013 Lexia Learning Systems Rosetta Stone SaaS Content Delivery & Management 22.5 15.0 (4.0) 1.5 N/M

07/25/2013 Element Payment Services Vantiv SaaS Business Software N/A N/A N/A N/A N/A

07/24/2013 EASY Software Solutions Bullhorn On Premise Accounting / ERP N/A N/A N/A N/A N/A

07/24/2013 Robert Steltman Cansel Survey Equipment On Premise Systems / Network N/A N/A N/A N/A N/A

07/24/2013 FoxWeave Cloud Bees SaaS Integration / Middleware N/A N/A N/A N/A N/A

07/24/2013 Meetings.com HotelPlanner.com SaaS Business Software N/A N/A N/A N/A N/A

07/24/2013 MerchantOS LightSpeed Retail SaaS Retail Software N/A N/A N/A N/A N/A

07/24/2013 Social Cloud Reputation.com SaaS Knowledge / Content N/A N/A N/A N/A N/A

07/24/2013 Omgeo The Depository Trust & Clearing Corporation On Premise Fintech N/A N/A N/A N/A N/A

07/23/2013 Smart Button Associates Aimia SaaS CRM 18.0 N/A N/A N/A N/A

07/23/2013 Sourcefire Cisco SaaS Security 2,193.6 247.4 18.5 8.9 N/M

07/23/2013 S3 ID Group CSE One On Premise Supply Chain 15.7 N/A N/A N/A N/A

07/23/2013 Harland Financial Solutions Davis + Henderson Corporation On Premise Fintech 1,628.7 281.5 88.2 5.8 18.5x

07/23/2013 Telcocell Ericsson On Premise Integration / Middleware N/A N/A N/A N/A N/A

07/23/2013 PassBan RSA Security SaaS Security N/A N/A N/A N/A N/A

07/23/2013 Nodefly Systems StrongLoop On Premise Integration / Middleware N/A N/A N/A N/A N/A

07/23/2013 Advanced Software Development VerticaLive On Premise Accounting / ERP N/A N/A N/A N/A N/A

07/22/2013 SR Tech Group Google On Premise Systems / Network N/A N/A N/A N/A N/A

07/22/2013 Digital Technology International Vista Equity Partners SaaS Advertising and Marketing N/A N/A N/A N/A N/A

07/22/2013 SAXOTECH Vista Equity Partners SaaS Business Software N/A N/A N/A N/A N/A

07/19/2013 Big Clix Hydro Phi Technologies SaaS Development N/A N/A N/A N/A N/A

07/18/2013 SeatMe Yelp SaaS Retail Software 12.7 N/A N/A N/A N/A

07/18/2013 Discovery Data Ipreo Holdings On Premise Content Delivery & Management N/A N/A N/A N/A N/A

07/17/2013 ComOps Markinson Software Solutions SaaS Accounting / ERP 3.9 N/A N/A N/A N/A

07/17/2013 HeatSeeker Technology Partners Warner Connect SaaS Systems / Network N/A N/A N/A N/A N/A

07/17/2013 Akiban Technologies FoundationDB On Premise Systems / Network N/A N/A N/A N/A N/A

07/17/2013 Anaqua Insight Venture Partners SaaS Content Delivery & Management N/A N/A N/A N/A N/A

07/17/2013 Position Logic RACO Wireless SaaS Business Intell igence N/A N/A N/A N/A N/A

07/17/2013 EK3 Technologies Cineplex SaaS Accounting / ERP 113.1 24.9 3.8 4.5 29.5

07/17/2013 REDI Holdings Merril l Lynch; Barclays On Premise Content & Services N/A N/A N/A N/A N/A

07/17/2013 Wireless Developer Agency [x+1] SaaS Content Delivery & Management N/A N/A N/A N/A N/A

07/16/2013 Enigma PTC SaaS Business Intell igence N/A N/A N/A N/A N/A

07/16/2013 EverGreen Data Continuity Rentsys Recovery Services SaaS Accounting / ERP N/A N/A N/A N/A N/A

07/16/2013 GDSX Concur Technologies On Premise Accounting / ERP N/A N/A N/A N/A N/A

07/16/2013 TRX Concur Technologies SaaS Business Intell igence N/A 46.3 3.6 N/A N/A

07/15/2013 RinkNet Marketing Siegel Enterprises On Premise Retail Software N/A N/A N/A N/A N/A

07/15/2013 Corero Business Systems Civica UK On Premise Accounting / ERP 21.3 N/A N/A N/A N/A

07/15/2013 Acumen Deltek SaaS Business Software N/A N/A N/A N/A N/A

07/15/2013 Zimbra Telligent Systems On Premise Integration / Middleware N/A N/A N/A N/A N/A

07/15/2013 Salient Stil ls Digital Audio Corporation On Premise Diversified Media N/A N/A N/A N/A N/A

07/15/2013 Mortgage Cadence Accenture On Premise Content Delivery & Management N/A N/A N/A N/A N/A



9


07/13/2013 Triple Point Technology Ion Investment Group SaaS Content & Services 900.0 200.0 N/A 4.5x N/A

07/11/2013 Active Risk Group Sword Group On Premise Business Intelligence 12.9 12.4 (0.6) 1.0 N/M

07/11/2013 National Transcript Center Hobsons On Premise Business Software N/A N/A N/A N/A N/A

07/11/2013 Invensys Schneider Electric On Premise Supply Chain 4,646.0 2,721.1 217.1 1.7 21.4x

07/11/2013 United Systems Technology StarDyne Technologies SaaS Accounting / ERP N/A N/A N/A N/A N/A

07/10/2013 VeloBit HGST On Premise Systems / Network N/A N/A N/A N/A N/A

07/10/2013 Equitrac Systems of Australia Y Soft Corporation On Premise Business Software N/A 9.9 N/A N/A N/A

07/10/2013 Pro-Suite Software Do Process Software On Premise Content Delivery & Management N/A N/A N/A N/A N/A

07/10/2013 Voxeo Corporation Aspect Software On Premise Development 145.0 N/A N/A N/A N/A

07/09/2013 Red Cedar Technology CD-adapco Group On Premise Systems / Network N/A N/A N/A N/A N/A

07/09/2013 FCP Internet Holdings Voyager Software On Premise Human Capital 3.1 1.4 N/A 2.2 N/A

07/09/2013 Tribold Sigma Systems SaaS Accounting / ERP N/A N/A N/A N/A N/A

07/09/2013 Zyrion Kaseya International On Premise Systems / Network N/A N/A N/A N/A N/A

07/09/2013 American Arium ASSET InterTech On Premise Development N/A N/A N/A N/A N/A

07/09/2013 CopperEgg Corporation Idera SaaS Systems / Network N/A N/A N/A N/A N/A

07/09/2013 Efficient Collaborative Retail Marketing BV Investment Partners SaaS Business Software N/A N/A N/A N/A N/A

07/08/2013 TrustedID Equifax SaaS Security N/A N/A N/A N/A N/A

07/08/2013 TSL Education TPG Capital SaaS Content Delivery & Management 549.0 N/A N/A N/A N/A

07/08/2013 Aveksa RSA Security SaaS Compliance Software N/A N/A N/A N/A N/A

07/08/2013 Service Repair Solutions Welsh, Carson, Anderson & Stowe On Premise Business Intelligence N/A N/A N/A N/A N/A

07/03/2013 MSS Management Systems Services Ideagen On Premise Human Capital 1.5 0.8 N/A 2.0 N/A

07/03/2013 Xobni Corporation Yahoo! On Premise Content Delivery & Management N/A N/A N/A N/A N/A

07/03/2013 Pierce-Eislen Yardi Systems SaaS Content & Services N/A N/A N/A N/A N/A

07/03/2013 Purepromoter Scottish Equity Partners; Investec SaaS Integration / Middleware N/A N/A N/A N/A N/A

07/02/2013 Mayrise Yotta On Premise Accounting / ERP 9.1 2.9 1.6 3.1 5.8

07/02/2013 Customer Value Group Xerox SaaS Accounting / ERP N/A N/A N/A N/A N/A

07/02/2013 Precise Software Solutions Idera On Premise Systems / Network N/A N/A N/A N/A N/A

07/02/2013 CRD GB Group SaaS Business Intelligence 2.0 0.7 N/A 2.7 N/A

07/02/2013 IgnitionOne and Netmining ABS Capital; Persimmon Capital SaaS Advertising and Marketing N/A N/A N/A N/A N/A

07/01/2013 Red Bee Media Limited Ericsson On Premise Knowledge / Content N/A N/A N/A N/A N/A

07/01/2013 E2E Infotech CameronTec Intressenter On Premise Accounting / ERP N/A N/A N/A N/A N/A

Software Median 2.0x 18.5x

Software Mean 2.6 15.9

SaaS Median 3.5x 17.6x

On Premise Median 1.9 15.2



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Software Public Market Performance

EV / Revenue EV / EBITDA

All Software: ACTV, ADBE, AKAM, AMSW.A, AVG, AZPN, BAS1V.HE, BIRT, BMC, CA, CALD, CHKP, CKSW, CNQR, CPWR, CRM, CSOD, CTXS, CYNI, DATA, DSY, DWRE, ECOM, EMC, EOPN, EXA, FLTX, FTNT, GIMO, GKNT, GWRE, HPQ, IBM, IMPV, INFA, ININ, INTU, LPSN, LSE:SDL, MANH, MCRS, MKTO, MODN, MRIN, MSFT, MSTR, N, NCR, NOW, NQ, NTCT, ORCL, OTEX, PANW, PEGA, PFPT, PMTC, PRGS, QADA, QIHU, QLYS, RALY, RHT, SAP, SGE, SPLK, SQI, SWI, SYMC, TIBX, TSX:DSG, TXTR, ULTI, VDSI, VRNT, VRSN, WDAY, ZIXI High Margin Software (>30% 2013 EBITDA Margins ): AKAM, AVG, BMC, CA, CHKP, CTXS, DSY, INTU, MSFT, NQ, ORCL, OTEX, PRGS, SAP, SWI, SYMC, VRSN High Growth Software (>20% 2013 Revenue Growth): CRM, CSOD, CYNI, DATA, DWRE, FLTX, GIMO, IMPV, ININ, MKTO, MRIN, N, NOW, NQ, PANW, QIHU, RALY, SPLK, SQI, SWI, WDAY Source: Capital IQ as of 9/30/13

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Public Market Performance

% of 52 Week High

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Price 52-Wk EV / Revenue EV / EBITDA P / E 52 WeekCompany 09/30/13 High Mkt Cap EV 2012 2013E 2014E 2012 2013E 2014E 2012 2013E 2014E

CRMSalesforce.com, Inc $51.91 97% $31,679 $33,538 11.0x 8.3x 6.5x NM 61.8x 40.2x NM NM 99.6xInteractive Intelligence Group Inc. 63.49 96% 1,373 1,330 5.6 4.4 3.8 NM 50.1 51.3 NM 132.3 106.3LivePerson Inc. 9.43 52% 510 435 2.8 2.5 2.1 22.9 21.7 16.3 85.7 49.9 35.5Median 96% $1,373 $1,330 5.6x 4.4x 3.8x 22.9x 50.1x 40.2x 85.7x 91.1x 99.6xMean 82% $11,187 $11,768 6.5x 5.1x 4.1x 22.9x 44.5x 36.0x 85.7x 91.1x 80.5x

Accounting / ERPOracle Corporation $33.17 91% $154,608 $159,067 4.3x 4.2x 4.0x 9.9x 8.6x 8.0x 15.6x 11.9x 10.9xSAP AG 74.00 88% 89,918 92,009 4.3 3.9 3.6 12.7 11.5 10.2 23.7 16.1 14.4Intuit Inc. 66.31 98% 19,067 18,557 4.4 4.3 4.0 14.2 11.0 10.2 27.7 20.4 18.0NetSuite Inc. 107.94 98% 8,233 8,039 26.0 19.6 15.4 NM NM NM NM NM NM Sage Group plc 5.34 91% 5,908 6,259 2.8 2.8 2.7 9.6 9.4 9.0 27.7 14.7 13.4American Software, Inc. 8.54 92% 234 184 1.8 1.8 1.7 11.1 10.2 9.0 23.5 23.1 21.4QAD Inc. 13.64 95% 214 160 0.6 0.6 0.6 9.9 10.6 8.8 33.5 30.3 25.3Median 92% $8,233 $8,039 4.3x 3.9x 3.6x 10.5x 10.4x 9.0x 25.7x 18.3x 16.2xMean 93% $39,740 $40,611 6.3x 5.3x 4.6x 11.2x 10.2x 9.2x 25.3x 19.4x 17.2x

RetailNCR Corp. $39.61 99% $6,683 $8,397 1.5x 1.3x 1.2x 17.3x 9.5x 8.6x 46.6x 14.4x 12.9xMICROS Systems, Inc. 49.94 98% 3,925 3,441 2.9 2.7 2.5 13.2 12.7 10.9 23.2 21.1 18.7The Active Network, Inc. 14.31 100% 957 853 2.0 1.9 1.7 NM 15.9 12.4 NM NM 149.1ChannelAdvisor Corporation 36.63 92% 873 792 14.8 11.9 9.6 NM NM NM NM NM NM Median 99% $2,441 $2,147 2.4x 2.3x 2.1x 15.3x 12.7x 10.9x 34.9x 17.8x 18.7xMean 97% $3,109 $3,371 5.3x 4.5x 3.8x 15.3x 12.7x 10.6x 34.9x 17.8x 60.2x

Supply Chain ManagementDassault Systemes SA $133.56 99% $17,060 $15,261 5.7x 5.3x 4.8x 18.2x 15.7x 13.9x 38.1x 27.1x 24.3xPTC Inc. 28.46 99% 3,404 3,415 2.7 2.6 2.5 15.2 10.3 9.5 NM 15.5 13.8Aspen Technology, Inc. 34.55 98% 3,263 3,131 11.4 9.3 8.0 NM 35.1 26.4 NM 50.9 46.3Manhattan Associates, Inc. 95.45 99% 1,857 1,758 4.7 4.3 3.9 20.5 16.2 14.5 37.3 27.9 25.6Fleetmatics Group PLC 37.55 73% 1,435 1,354 10.6 7.9 6.3 57.2 25.2 20.2 75.1 46.2 35.4Textura Corporation 43.08 99% 1,127 1,070 44.7 26.3 16.7 NM NM NM NM NM NM The Descartes Systems Group Inc 11.49 96% 736 714 5.6 4.7 4.2 19.5 16.3 13.9 46.0 17.9 14.8E2open, Inc. 22.40 87% 625 612 8.2 8.6 6.9 NM NM NM NM NM NM SciQuest, Inc. 22.46 87% 530 519 7.8 5.6 4.6 NM 29.0 23.1 NM 65.4 52.2BasWare Oyj 29.37 99% 377 361 2.4 2.1 1.9 22.4 22.7 12.8 48.8 99.5 28.3ClickSoftware Technologies Ltd. 6.09 67% 194 175 1.7 1.6 1.3 17.2 22.4 17.5 26.5 48.1 18.8Median 98% $1,127 $1,070 5.7x 5.3x 4.6x 19.5x 22.4x 14.5x 42.0x 46.2x 25.6xMean 91% $2,783 $2,579 9.6x 7.1x 5.6x 24.3x 21.4x 16.9x 45.3x 44.3x 28.8x

Human Capital ManagementWorkday, Inc. $80.93 97% $14,082 $14,121 51.6x 31.7x 21.0x NM NM NM NM NM NM Concur Technologies, Inc. 110.50 97% 6,234 6,376 13.8 11.1 8.8 NM 51.9 39.4 NM 107.7 85.8The Ultimate Software Group, Inc. 147.40 99% 4,245 4,172 12.6 10.2 8.3 NM 47.7 35.9 NM 104.4 80.1Cornerstone OnDemand, Inc. 51.44 94% 2,882 2,809 23.8 15.2 10.8 NM NM NM NM NM NM Callidus Software Inc. 9.17 99% 364 408 4.3 3.8 3.4 NM 47.7 28.2 NM NM 59.8Median 97% $4,245 $4,172 13.8x 11.1x 8.8x NM 47.7x 35.9x NM 106.0x 80.1xMean 97% $5,562 $5,577 21.2x 14.4x 10.5x NM 49.1x 34.5x NM 106.0x 75.2x

Public Company Trading Comparables


12


Knowledge / Content ManagementAdobe Systems Inc. $51.94 99% $26,289 $26,990 6.1x 6.7x 6.2x 18.3x 23.0x 20.1x 31.3x 38.7x 32.9x Akamai Technologies, Inc. 51.70 98% 9,369 9,164 6.7 5.9 5.2 18.3 13.7 11.9 46.2 26.4 23.3Open Text Corporation 74.65 99% 4,455 4,550 3.6 3.3 3.1 12.2 10.4 9.9 35.7 13.6 12.4SDL plc 5.06 47% 406 405 0.9 0.9 0.9 5.9 11.6 7.6 12.0 25.1 13.2Median 98% $6,912 $6,857 4.8x 4.6x 4.1x 15.3x 12.6x 10.9x 33.5x 25.7x 18.3x Mean 86% $10,130 $10,277 4.3x 4.2x 3.8x 13.7x 14.7x 12.4x 31.3x 25.9x 20.5x

Business IntelligenceInformatica Corporation $38.97 98% $4,370 $4,177 5.1x 4.5x 4.0x 23.2x 17.2x 14.7x 47.0x 27.5x 23.8x Tableau Software, Inc. 71.24 95% 4,216 3,994 31.3 19.8 14.5 NM NM NM NM NM NM Verint Systems Inc. 37.06 97% 1,979 2,396 2.9 2.7 2.5 14.8 10.0 9.7 38.6 13.4 12.4Pegasystems Inc. 39.81 100% 1,590 1,486 3.2 2.9 2.7 29.7 16.8 15.4 71.1 30.7 26.7MicroStrategy Inc. 103.76 78% 1,173 984 1.7 1.7 1.6 19.7 32.2 18.8 56.4 NM 52.1Actuate Corporation 7.35 97% 377 337 2.4 2.4 2.2 14.1 11.5 10.0 36.8 19.2 16.3Median 97% $1,785 $1,941 3.0x 2.8x 2.6x 19.7x 16.8x 14.7x 47.0x 23.4x 23.8x Mean 94% $2,284 $2,229 7.8x 5.7x 4.6x 20.3x 17.5x 13.7x 50.0x 22.7x 26.3x

SecuritySymantec Corporation $24.75 92% $17,398 $15,743 2.3x 2.3x 2.2x 8.7x 7.5x 6.5x 15.9x 13.5x 11.9x Check Point Software Technologies Ltd. 56.56 96% 11,397 11,231 8.4 8.1 7.6 14.7 13.5 12.8 19.1 16.7 15.3Qihoo 360 Technology Co. Ltd. 83.20 92% 10,215 9,837 29.9 15.1 9.7 NM 50.2 30.4 NM 64.8 40.1VeriSign, Inc. 50.89 98% 7,316 8,094 9.3 8.4 7.9 15.8 13.0 12.2 26.6 22.0 19.9FireEye, Inc. 41.53 100% 5,582 5,547 66.6 NM NM NM NM NM NM NM NM Palo Alto Networks, Inc. 45.82 70% 3,626 3,315 10.2 7.1 5.3 NM 71.2 40.2 NM NM 82.7Fortinet Inc. 20.26 81% 3,416 3,292 6.2 5.5 4.8 29.5 25.6 21.0 50.7 44.0 35.9SolarWinds, Inc. 35.06 58% 2,697 2,548 9.5 7.8 6.4 19.4 14.6 12.6 32.8 23.0 20.2Proofpoint, Inc. 32.12 100% 1,339 1,277 12.0 9.8 8.1 NM NM NM NM NM NM AVG Technologies N.V. 23.94 91% 1,333 1,328 3.7 3.1 2.7 12.4 9.2 8.3 28.4 11.6 10.2NQ Mobile Inc. 21.79 92% 1,130 1,115 12.1 6.0 4.2 NM 17.2 12.3 109.0 20.9 16.4Imperva Inc. 42.02 80% 1,083 1,013 9.7 7.5 6.0 NM NM 88.2 NM NM 144.9Qualys, Inc. 21.39 93% 792 725 7.9 6.7 5.7 70.0 42.7 31.7 NM 115.6 75.9Zix Corporation 4.90 99% 308 282 6.5 5.8 5.1 23.5 21.2 16.3 28.8 25.8 20.4VASCO Data Security International Inc. 7.89 84% 307 221 1.4 1.4 1.3 9.0 10.2 7.8 18.8 23.2 18.1Median 92% $2,697 $2,548 9.3x 6.9x 5.5x 15.8x 15.9x 12.8x 28.4x 23.0x 20.2x Mean 88% $4,529 $4,371 13.1x 6.8x 5.5x 22.6x 24.7x 23.1x 36.7x 34.6x 39.4x

Systems / Network ManagementEMC Corporation $25.56 94% $54,052 $53,714 2.5x 2.3x 2.1x 10.4x 7.4x 6.7x 20.7x 13.8x 12.2x CA Technologies 29.67 95% 13,546 12,508 2.7 2.8 2.8 7.9 7.1 7.4 15.1 10.1 11.5Compuware Corporation 11.19 90% 2,451 2,385 2.5 2.5 2.3 14.6 14.3 10.6 33.9 36.0 25.7Gigamon Inc. 38.64 93% 1,293 1,171 12.1 8.6 6.7 NM 63.1 50.5 NM 112.5 103.5NetScout Systems, Inc. 25.53 93% 1,059 956 2.8 2.6 2.2 12.1 9.2 7.8 28.0 18.7 15.7Cyan, Inc. 10.05 72% 540 452 4.7 3.2 2.2 NM NM NM NM NM NM Median 93% $1,872 $1,778 2.7x 2.7x 2.3x 11.3x 9.2x 7.8x 24.4x 18.7x 15.7x Mean 89% $12,157 $11,864 4.5x 3.7x 3.1x 11.3x 20.2x 16.6x 24.4x 38.2x 33.7x

Public Company Trading Comparables (cont.)


13

Public Company Trading Comparables (cont.)



Integration / MiddlewareCitrix Systems, Inc. $70.61 93% $13,356 $13,093 5.1x 4.4x 3.9x 21.5x 15.6x 13.3x 38.0x 22.9x 20.1xTIBCO Software Inc. 25.59 85% 4,384 4,254 4.2 4.0 3.6 19.8 15.1 13.1 35.5 24.8 20.9Progress Software Corp. 25.85 98% 1,429 1,187 3.5 3.5 3.4 13.2 10.8 9.2 50.7 22.0 16.6Median 93% $4,384 $4,254 4.2x 4.0x 3.6x 19.8x 15.1x 13.1x 38.0x 22.9x 20.1xMean 92% $6,390 $6,178 4.3x 4.0x 3.7x 18.2x 13.8x 11.9x 41.4x 23.2x 19.2x

Platform / OSMicrosoft Corporation $33.28 92% $277,327 $289,813 4.0x 3.6x 3.3x 10.0x 9.0x 8.7x 18.3x 12.5x 11.7xInternational Business Machines Corporation 185.18 86% 203,890 228,454 2.2 2.2 2.2 8.5 8.3 7.7 12.9 11.1 10.1Hewlett-Packard Company 20.99 77% 40,339 51,980 0.4 0.5 0.5 3.6 3.7 3.8 NM 5.9 5.8Red Hat, Inc. 46.14 81% 8,743 8,147 6.4 5.5 4.9 30.9 20.0 16.7 62.4 33.5 30.3Median 83% $122,114 $140,217 3.1x 2.9x 2.8x 9.3x 8.6x 8.2x 18.3x 11.8x 10.9xMean 84% $132,575 $144,598 3.2x 3.0x 2.7x 13.3x 10.2x 9.3x 31.2x 15.7x 14.4x

14

Price 52-Wk Revenue Growth EBITDA Margin Net Margin 52 WeekCompany 09/30/13 High Mkt Cap EV 2012 2013E 2014E 2012 2013E 2014E 2012 2013E 2014E

CRMSalesforce.com, Inc $51.91 97% $31,679 $33,538 35% 32% 29% 3% 13% 16% NM 40% 41%Interactive Intelligence Group Inc. 63.49 96% 1,373 1,330 13% 28% 15% 5% 9% 7% 8% 38% 51%LivePerson Inc. 9.43 52% 510 435 18% 13% 14% 12% 11% 13% 33% 54% 59%Median 96% $1,373 $1,330 18% 28% 15% 5% 11% 13% 21% 40% 51%Mean 82% $11,187 $11,768 22% 24% 19% 6% 11% 12% 21% 44% 51%

Accounting / ERPOracle Corporation $33.17 91% $154,608 $159,067 1% 1% 5% 43% 49% 50% 66% 71% 70%SAP AG 74.00 88% 89,918 92,009 16% 9% 8% 34% 34% 36% 52% 68% 67%Intuit Inc. 66.31 98% 19,067 18,557 7% 4% 6% 31% 39% 39% 60% 58% 58%NetSuite Inc. 107.94 98% 8,233 8,039 31% 33% 28% (5%) 10% 10% NM 49% 63%Sage Group plc 5.34 91% 5,908 6,259 6% 2% 3% 30% 30% 30% 42% 63% 63%American Software, Inc. 8.54 92% 234 184 3% (3%) 10% 16% 18% 19% 66% 57% 54%QAD Inc. 13.64 95% 214 160 2% 4% 6% 6% 6% 7% 41% 44% 48%Median 92% $8,233 $8,039 6% 4% 6% 30% 30% 30% 56% 58% 63%Mean 93% $39,740 $40,611 9% 7% 9% 22% 26% 27% 54% 59% 61%

RetailNCR Corp. $39.61 99% $6,683 $8,397 8% 10% 7% 8% 14% 15% 30% 53% 54%MICROS Systems, Inc. 49.94 98% 3,925 3,441 14% 6% 5% 22% 21% 23% 68% 69% 65%The Active Network, Inc. 14.31 100% 957 853 24% 9% 12% 1% 12% 13% NM (15%) 15%ChannelAdvisor Corporation 36.63 92% 873 792 23% 24% 25% (2%) (16%) (20%) NM NM NM Median 99% $2,441 $2,147 19% 9% 9% 5% 13% 14% 49% 53% 54%Mean 97% $3,109 $3,371 17% 12% 12% 7% 8% 8% 49% 35% 44%

Supply Chain ManagementDassault Systemes SA $133.56 99% $17,060 $15,261 15% 8% 9% 31% 34% 35% 53% 64% 64%PTC Inc. 28.46 99% 3,404 3,415 3% 3% 5% 18% 26% 27% (10%) 67% 71%Aspen Technology, Inc. 34.55 98% 3,263 3,131 23% 23% 16% 8% 27% 30% 40% 72% 60%Manhattan Associates, Inc. 95.45 99% 1,857 1,758 14% 9% 10% 23% 26% 27% 60% 62% 61%Fleetmatics Group PLC 37.55 73% 1,435 1,354 38% 35% 24% 19% 31% 31% 23% 56% 60%Textura Corporation 43.08 99% 1,127 1,070 NM 70% 57% (63%) (31%) (10%) NM NM NM The Descartes Systems Group Inc 11.49 96% 736 714 11% 19% 13% 29% 29% 30% 44% 54% 61%E2open, Inc. 22.40 87% 625 612 22% (4%) 25% 6% (12%) (1%) 68% NM NM SciQuest, Inc. 22.46 87% 530 519 24% 38% 23% 6% 19% 20% (31%) 45% 47%BasWare Oyj 29.37 99% 377 361 7% 13% 12% 11% 9% 15% 48% 24% 47%ClickSoftware Technologies Ltd. 6.09 67% 194 175 15% 10% 23% 10% 7% 7% 74% 60% 83%Median 98% $1,127 $1,070 15% 13% 16% 11% 26% 27% 46% 60% 61%Mean 91% $2,783 $2,579 17% 20% 20% 9% 15% 19% 37% 56% 61%

Human Capital ManagementWorkday, Inc. $80.93 97% $14,082 $14,121 104% 63% 51% (32%) (18%) (12%) NM NM NM Concur Technologies, Inc. 110.50 97% 6,234 6,376 25% 25% 26% 10% 21% 22% (41%) 49% 48%The Ultimate Software Group, Inc. 147.40 99% 4,245 4,172 23% 23% 22% 12% 21% 23% 35% 47% 48%Cornerstone OnDemand, Inc. 51.44 94% 2,882 2,809 61% 57% 41% (23%) 1% 6% NM NM (6%)Callidus Software Inc. 9.17 99% 364 408 13% 12% 14% (18%) 8% 12% NM 14% 47%Median 97% $4,245 $4,172 25% 25% 26% (18%) 8% 12% (3%) 47% 47%Mean 97% $5,562 $5,577 45% 36% 31% (10%) 7% 10% (3%) 37% 34%

Public Company Operating Metrics

EBITDA and Net Margins Greater than 100% or less than -100% are deemed non-material (“NM”) Source: Capital IQ as of 9/30/13

15


Knowledge / Content ManagementAdobe Systems Inc. $51.94 99% $26,289 $26,990 4% (8%) 8% 34% 29% 31% 56% 59% 60%Akamai Technologies, Inc. 51.70 98% 9,369 9,164 19% 13% 14% 36% 43% 43% 41% 53% 52%Open Text Corporation 74.65 99% 4,455 4,550 10% 8% 5% 29% 32% 32% 33% 74% 80%SDL plc 5.06 47% 406 405 23% (0%) 4% 16% 8% 12% 50% 43% 59%Median 98% $6,912 $6,857 14% 4% 6% 31% 30% 31% 45% 56% 59%Mean 86% $10,130 $10,277 14% 3% 8% 29% 28% 29% 45% 57% 63%

Business IntelligenceInformatica Corporation $38.97 98% $4,370 $4,177 4% 14% 12% 22% 26% 27% 52% 65% 65%Tableau Software, Inc. 71.24 95% 4,216 3,994 105% 58% 37% 6% (3%) 0% 18% NM NM Verint Systems Inc. 37.06 97% 1,979 2,396 7% 8% 7% 19% 26% 26% 33% 62% 66%Pegasystems Inc. 39.81 100% 1,590 1,486 11% 10% 10% 11% 17% 17% 44% 59% 62%MicroStrategy Inc. 103.76 78% 1,173 984 6% (4%) 9% 8% 5% 8% 41% 19% 43%Actuate Corporation 7.35 97% 377 337 3% 1% 9% 17% 21% 22% 43% 66% 65%Median 97% $1,785 $1,941 7% 9% 10% 14% 19% 20% 42% 62% 65%Mean 94% $2,284 $2,229 23% 14% 14% 14% 16% 17% 38% 54% 60%

SecuritySymantec Corporation $24.75 92% $17,398 $15,743 2% 1% 2% 27% 30% 34% 62% 61% 60%Check Point Software Technologies Ltd. 56.56 96% 11,397 11,231 8% 4% 6% 57% 60% 60% 81% 82% 81%Qihoo 360 Technology Co. Ltd. 83.20 92% 10,215 9,837 96% 98% 55% 20% 30% 32% 70% 84% 81%VeriSign, Inc. 50.89 98% 7,316 8,094 13% 10% 6% 59% 65% 65% 63% 59% 58%FireEye, Inc. 41.53 100% 5,582 5,547 148% NM NM (32%) NM NM NM NM NM Palo Alto Networks, Inc. 45.82 70% 3,626 3,315 75% 44% 35% (0%) 10% 13% NM 47% 53%Fortinet Inc. 20.26 81% 3,416 3,292 23% 13% 14% 21% 21% 23% 60% 61% 63%SolarWinds, Inc. 35.06 58% 2,697 2,548 36% 21% 22% 49% 54% 51% 62% 67% 68%Proofpoint, Inc. 32.12 100% 1,339 1,277 30% 22% 21% (11%) (5%) 2% NM NM NM AVG Technologies N.V. 23.94 91% 1,333 1,328 31% 19% 15% 30% 34% 33% 43% 79% 82%NQ Mobile Inc. 21.79 92% 1,130 1,115 126% 104% 41% 4% 35% 34% NM 95% 92%Imperva Inc. 42.02 80% 1,083 1,013 33% 30% 25% (5%) 0% 7% NM NM 75%Qualys, Inc. 21.39 93% 792 725 20% 18% 17% 11% 16% 18% 22% 39% 46%Zix Corporation 4.90 99% 308 282 14% 13% 14% 28% 27% 31% 92% 87% 88%VASCO Data Security International Inc. 7.89 84% 307 221 (8%) 4% 8% 16% 14% 16% 63% 66% 62%Median 92% $2,697 $2,548 30% 18% 16% 20% 29% 32% 62% 67% 68%Mean 88% $4,529 $4,371 43% 29% 20% 18% 28% 30% 62% 69% 70%

System / Network ManagementEMC Corporation $25.56 94% $54,052 $53,714 9% 8% 8% 24% 31% 31% 53% 55% 56%CA Technologies 29.67 95% 13,546 12,508 (2%) (4%) (1%) 34% 39% 38% 58% 76% 68%Compuware Corporation 11.19 90% 2,451 2,385 (2%) (0%) 7% 17% 17% 22% 45% 38% 38%Gigamon Inc. 38.64 93% 1,293 1,171 42% 40% 29% 9% 14% 13% 83% 57% 57%NetScout Systems, Inc. 25.53 93% 1,059 956 15% 9% 14% 23% 28% 29% 49% 55% 57%Cyan, Inc. 10.05 72% 540 452 137% 48% 46% (10%) (14%) (0%) NM NM NM Median 93% $1,872 $1,778 12% 9% 11% 20% 23% 25% 53% 55% 57%Mean 89% $12,157 $11,864 33% 17% 17% 16% 19% 22% 58% 56% 55%

Public Company Operating Metrics (cont.)


16

Public Company Operating Metrics (cont.)



Integration / MiddlewareCitrix Systems, Inc. $70.61 93% $13,356 $13,093 17% 15% 13% 24% 28% 29% 58% 69% 68%TIBCO Software Inc. 25.59 85% 4,384 4,254 11% 4% 9% 21% 26% 28% 57% 61% 63%Progress Software Corp. 25.85 98% 1,429 1,187 (7%) 0% 3% 27% 33% 37% 53% 58% 61%Median 93% $4,384 $4,254 11% 4% 9% 24% 28% 29% 57% 61% 63%Mean 92% $6,390 $6,178 7% 7% 9% 24% 29% 31% 56% 63% 64%

Platform / OSMicrosoft Corporation $33.28 92% $277,327 $289,813 1% 11% 7% 40% 40% 38% 54% 70% 71%International Business Machines Corporation 185.18 86% 203,890 228,454 (2%) (2%) 2% 26% 27% 28% 62% 67% 65%Hewlett-Packard Company 20.99 77% 40,339 51,980 (5%) (8%) (2%) 12% 13% 13% (90%) 49% 51%Red Hat, Inc. 46.14 81% 8,743 8,147 18% 15% 13% 21% 28% 29% 54% 65% 60%Median 83% $122,114 $140,217 (1%) 5% 5% 23% 27% 29% 54% 66% 63%Mean 84% $132,575 $144,598 3% 4% 5% 25% 27% 27% 20% 63% 62%

17

LTM Multiples Metrics and Financings Share Information

IPO DateDays on

FileCompany EV

IPO Amt

Raised

Market

CapEV / Rev

EV /

EBITDA

Rev Grwth

at IPO

NTM Rev

Growth

Net Cash

at IPO

IPO Offer

Price

File to

Price Chg

Primary

Shares

Current

Price

Chg Since

IPOBusiness Description

Software09/27/13 32 RingCentra l $781 $98 $878 5.7x NM 72% NM ($1) $13 -- 99% $18 39% Cloud telecommunications systems09/26/13 135 Covis int 331 64 395 3.5 NM 21% NM 1 10 -- 100% 13 28% Cloud communication platform09/18/13 35 Benefi tfocus 538 131 668 5.9 NM 33% NM 5 27 8% 61% 49 86% Onl ine benefi ts enrol lment platform09/20/13 49 FireEye 2,406 304 2,710 20.9 NM 242% NM 34 20 18% 100% 42 108% Computer securi ty appl ication software08/08/13 31 Cvent 755 118 872 7.8 97.8 59% 24% 41 21 11% 100% 35 67% Event regis tration software08/01/13 31 Control4 Corporation 338 64 402 2.9 76.9 27% 17% 14 16 -- 100% 17 8% Home automation software and hardware07/25/13 105 Liquid Holdings Group 192 29 220 NM NM NM NM 4 9 -- 100% 7 (22%) Asset management software06/11/13 333 Gigamon 471 128 599 4.5 53.6 42% 30% 23 19 -- 67% 39 103% Network traffic management software06/06/13 62 Textura 257 75 332 9.4 NM 160% 64% (20) 15 -- 100% 43 187% SaaS project management platform05/22/13 41 ChannelAdvisor 230 81 310 4.1 NM 29% 21% (0) 14 -- 100% 37 162% SaaS Ecommerce platform05/17/13 45 Marketo 382 90 472 5.8 NM 104% 33% 33 13 -- 11% 32 145% SaaS marketing 05/17/13 45 Tableau 1,920 254 2,174 13.4 NM 129% 43% 40 31 3% 61% 71 130% BI software05/08/13 34 Cyan 498 88 586 4.6 NM 167% 45% 1 11 -- 100% 10 (9%) Network vi rtual ization software04/11/13 31 Ral ly Software 173 97 269 3.0 NM 38% 20% 18 14 8% 5% 30 114% SaaS agi le development tools03/21/13 36 Marin Software 373 105 478 6.3 NM 65% 25% 21 14 8% 100% 13 (10%) SaaS onl ine ad management03/20/13 35 Model N 279 120 399 3.2 NM 36% 18% 13 16 7% 89% 10 (36%) Revenue cycle management software10/11/12 42 Workday 4,688 733 5,420 23.5 NM 128% 57% 37 28 8% 100% 81 189% SaaS CRM10/04/12 45 Fleetmatics Group 624 133 757 5.3 32.1 82% 27% (24) 17 -- 100% 38 121% SaaS fleet management09/27/12 111 Qualys 324 105 429 3.9 46.5 27% 25% 28 12 -- 90% 21 78% SaaS securi ty and compl iance08/01/12 343 Eloqua 350 106 456 4.1 NM 42% 16% 3 12 -- 89% NM NM SaaS onl ine ad management07/25/12 159 E2open 339 70 409 5.3 NM 15% 12% 10 15 -- 80% 22 49% SaaS supply chain management06/28/12 90 ServiceNow 2,560 241 2,801 17.0 NM 247% 96% 68 18 6% 12% 52 189% SaaS IT automation06/28/12 330 Exa Corporation 168 63 231 3.6 29.5 16% 17% 8 10 (9%) 67% 15 55% Auto manufacturer software04/19/12 127 Proofpoint 408 94 502 4.6 NM 35% 19% 8 13 8% 83% 32 147% SaaS securi ty and compl iance04/18/12 97 Splunk 1,709 264 1,973 14.1 NM 83% 56% 32 17 31% 94% 60 253% SaaS BI03/14/12 243 Demandware 417 101 518 7.4 NM 54% 24% 15 16 10% 100% 46 190% SaaS ecommerce solutions02/01/12 19 AVG Technologies N.V. 764 128 892 2.8 9.1 25% 18% (154) 16 -- 50% 24 50% Internet securi ty software01/24/12 144 Guidewire Software 665 132 797 3.5 25.7 31% 9% 31 13 8% 100% 47 262% Insurance softwareMedian 47 $412 $105 $510 5.3x 39.3x 42% 24% $13 8% 96% 103%Mean 101 $819 $143 $963 7.3x 46.4x 74% 31% $10 9% 81% 99%

Software IPOs

Note: $ in Millions. Data as of 9/30/13. Revenue and EBITDA multiples greater than 25x and 100x, respectively, are deemed non-material (“NM”). Source: Capital IQ as of 9/30/13

18

Vista Point Advisors Overview

Mike Lyon

415.659.9187

[email protected]

Jeff Bean

415.659.9190

[email protected]

Morgan Livermore

415.501.9029

[email protected]

Vivek Goyal

415.692.6163

[email protected]

David Cho

415.547.8440

[email protected]

Miles Lacey

415.659.9278

[email protected]

Eddie Le

415.659.9191

[email protected]

Scott Austin

415.547.8437

[email protected]

Jeffrey Koons

415.659.9189

[email protected] 90 New Montgomery, Suite 700

San Francisco, CA 94105

• SaaS

• On-premise

• Application Software

• Healthcare IT

• Financial Tech

• Advertising and Marketing

• Digital Media

• Gaming

• Content

• Ecommerce

• Consumer Applications

• Enterprise Applications

• Gaming

• Payments

Software Internet Mobile

Vista Point Advisors is a boutique investment bank focused on capital raises and M&A advisory for growing technology companies

software industry update q3 2013 - vista point...

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