software m&a report

Please refer to Appendix – Disclaimers and Other Disclosures on page 14.

Market Analysis Summer 2015

Software M&A Report Review of Sector Trends and M&A Activity

Peter Kies Managing Director Head of Technology & Services Investment Banking +1.414.765.7262 [email protected]

Mike Magluilo Managing Director Technology Investment Banking +1.303.413.3818 [email protected]

Chase Sanders Managing Director Technology Investment Banking +1.202.303.1807 [email protected]

Jonathan Harrison Managing Director European Investment Banking +44.207.667.8414 [email protected]

Owen Hart Managing Director +1.415.627.3273 [email protected]

John Moriarty Managing Director Technology Investment Banking +1.650.858.3811 [email protected]

David Silver Managing Director Head of European Investment Banking +44.207.667.8216 [email protected]

Table of Contents Page

Please refer to Appendix – Disclaimers and Other Disclosures on page 34.

• Quarterly Report Overview ................................................................................. 1

• Sector Trading Statistics and Operating Metrics ................................................. 3

• Software M&A Analysis .................................................................................... 15

• Selected Noteworthy Software M&A Transactions ............................................ 17

• Recent Software IPOs ...................................................................................... 19

• Biographies ...................................................................................................... 21

• Appendix .......................................................................................................... 24

• Global Investment Banking Contact List ........................................................... 33

The following report has been prepared by the Global Investment Banking Department of Robert W. Baird & Co. This report is an overview and analysis of industry and consolidation trends and is not intended to provide investment recommendations on any specific industry or company. A complete listing of all companies covered by Baird U.S. Equity Research and applicable disclosures can be accessed at <http://www.rwbaird.com/researchdisclosure>. You can also call 1-800-792-2473 or write: Robert W. Baird, Equity Research, 24th Floor, 777 E. Wisconsin Avenue, Milwaukee, WI 53202.

Robert W. Baird & Co. (“Baird”) is a leading middle market focused investment bank serving the M&A and equity financing needs of our clients throughout the U.S., Europe and Asia. Since 2008, we have advised on 419 M&A transactions totaling $93 billion and have served as an underwriter on 575 equity offerings totaling $179 billion in raised capital. Baird’s balanced buy- and sell-side practice provides expertise for public and private companies, while our dedicated financial sponsor coverage further expands opportunities and financing resources for our clients. Through close coordination between our U.S., European and Asian bankers, we work to optimize opportunities and results for clients in the international marketplace. Approximately one-third of our M&A activity over the past five years has involved international transactions.

Quarterly Report Overview

Robert W. Baird & Co. 1

This quarterly Software industry report, created by the Technology team in Baird’s Global Investment Banking Department, highlights M&A and capital market trends and events that impact companies in the sector. Presented below are the report’s four segments of focus (in addition to IT Conglomerates) along with relevant public companies within each group.

Software Public Companies by Segment Segment Companies

IT Conglomerates

Cisco EMC HP IBM

Intel Microsoft Oracle SAP

Applications

ERP & HCM American Software Basware Benefitfocus Cornerstone OnDemand Halogen Intuit MindBody Software Netsuite Paycom Paylocity QAD Sage Shopify TOTVS Tyler Technologies Ultimate Software Upland WageWorks Workday Xactly Xero Yonyou CRM & Marketing Acxiom Adobe Bazaarvoice Blackbaud Callidus ChannelAdvisor Constant Contact Cvent Demandware Dialog Direct eGain Five9 Hubspot inContact Interactive Intelligence Jive LinkedIn LivePerson Marin Marketo NICE Salesforce ServiceSource Tube Mogul Veeva Web.com Zendesk

Information Management & Analytics Box Datawatch Fair Isaac Globant IntraLinks MicroStrategy OpenText Qlik ServiceNow Splunk Tableau Teradata Verint Workiva PLM & Engineering Ansys Aspen Technology Autodesk Aveva Group Cadence Dassault Exa Corp. GSE Systems Mentor Graphics Nemetschek AG PDF Solutions PTC Synopsys SCM & Logistics Amber Road American Software Covisint Descartes E2open Fleetmatics Kinaxis Manhattan MiX Telematics SciQuest SPS Commerce Telenav

Financial IT ACI Worldwide Advent Software Bottomline Ebix Ellie Mae Envestnet Fidessa Guidewire Liquid Holdings Q2 Holdings Sapiens SS&C Technologies Yodlee Healthcare IT Accretive Health Advisory Board Allscripts athenahealth Benefitfocus Castlight Catamaran Cegedim Cerner CompuGroup Connecture CPSI Evolent Health HealthEquity Healthstream HMS iCAD Imprivata IMS Health Inovalon MedAssets Medidata Merge Omnicell OSI Systems Premier Press Ganey Quality Systems Sectra AB Veeva

Other Vertical Solutions 2U Amdocs AppFolio BroadSoft Comverse Constellation CSG Systems Epiq Evolving Systems Mobileye Model N NetSol NIC Opower PROS Holdings RealPage Redknee RPX Silver Spring Networks Solera Synchronoss Tangoe TeleCommunication Systems Textura

_____________________ Note: ERP = Enterprise Resource Planning, HCM = Human Capital Management, CRM = Customer Relationship Management, PLM = Product Lifecycle Management, and SCM = Supply Chain Management.

Quarterly Report Overview


Infrastructure

Application & Data Adobe Apigee Hortonworks Interactive Intelligence Magic Software Micro Focus MobileIron Nuance Pegasystems Progress Software RedHat SDL ServiceNow Software AG Wix

Network & Systems A10 Aerohive Akamai Arista Attunity CA Citrix F5 Gigamon Infoblox J2 Global LogMeIn NetScout New Relic RingCentral SolarWinds Splunk Support.com Varonis Systems VMWare

Storage Carbonite CommVault FalconStor NetApp Nimble Storage Violin Memory

Security

Content Providers Ahnlab AVG CommTouch Cyber Ark F-Secure Proofpoint Symantec Trend Micro Wave Systems Zix

Network Security & IAM Absolute Software Barracuda Bio-key Check Point Cyren FireEye Fortinet Gemalto Guidance Imperva Imprivata Intrusion LifeLock NQ Mobile Palo Alto Qihoo 360 Qualys Vasco Verisign

SaaS

2U Amber Road AppFolio Athenahealth Bazaarvoice Benefitfocus Box Callidus Carbonite Castlight ChannelAdvisor Connecture Constant Contact Cornerstone OnDemand Covisint Cvent Demandware E2open

Ebix Ellie Mae FireEye Five9 Fleetmatics Halogen Hubspot inContact Inovalon IntraLinks J2 Global Jive Kinaxis LifeLock LinkedIn Liquid Holdings LogMeIn Marin

Marketo Medidata MindBody MiX Telematics Model N Netsuite New Relic Opower Paycom Paylocity Proofpoint Q2 Holdings Qualys RealPage RedHat RingCentral Salesforce SciQuest

ServiceNow ServiceSource Shopify Synchronoss SPS Commerce Tangoe Textura Tube Mogul Ultimate Software Upland Veeva Workday Workiva Xactly Xero Yodlee Zendesk Zix

_____________________ Note: IAM = Identity and Access Management.

Sector Trading Statistics and Operating Metrics


During the past 12 months, the Security segment outpaced the broader U.S. market, including the NASDAQ Composite Index, whereas the Infrastructure and IT Conglomerates groups lagged significantly. Over the past three years, the Security, SaaS, and Applications segments outperformed the NASDAQ.

LTM Stock Price Performance – Primary Software Segments

3-Year Stock Price Performance – Primary Software Segments

LTM Stock Price Performance – Applications Sub-Segments / SaaS

_____________________ Source: Capital IQ. Companies in various indices are listed on pages 1-2.

80%

90%

100%

110%

120%

130%

140%

30-Jun-14 29-Sep-14 29-Dec-14 30-Mar-15 30-Jun-15

IT Conglomerates Applications Infrastructure Security SaaS NASDAQ

26.3%

(2.1%)4.8%

13.1%13.1%11.8%

50%

100%

150%

200%

30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15

IT Conglomerates Applications Infrastructure Security SaaS NASDAQ

81.7%

25.9%35.4%

76.3%69.9%

96.6%

11.8%

80%

90%

100%

110%

120%

130%

140%

150%


ERP & HCM CRM & Marketing Information Management & AnalyticsPLM & Engineering SCM & Logistics Financial ITHealthcare IT Other Vertical Solutions SaaSNASDAQ

5.7%

32.4%24.0%

0.1%

31.0%13.1%

8.6%10.2%

5.2%



3-Year Stock Price Performance – Applications Sub-Segments / SaaS

LTM Stock Price Performance – Infrastructure and Security Sub-Segments

3-Year Stock Price Performance – Infrastructure and Security Sub-Segments

_____________________ Source: Capital IQ. Companies in various indices are listed on pages 1-2.

50%

100%

150%

200%

250%

30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15

ERP & HCM CRM & Marketing Information Management & Analytics PLM & Engineering

SCM & Logistics Financial IT Healthcare IT Other Vertical Solutions

SaaS NASDAQ

65.2%

112.7%94.6%

49.5%

113.3%

49.0%

72.4%81.7%

69.9%74.8%

80%

90%

100%

110%

120%

130%

140%


Application & Data Network & Systems Storage Content Providers Network Security and IAM NASDAQ

17.2%

0.5%

(12.4%)

14.0%13.1%

27.4%

50%

100%

150%

200%

250%

30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15

Application & Data Network & Systems Storage Content Providers Network Security and IAM NASDAQ

64.7%42.4%

(3.4%)

43.9%69.9%

106.2%



Risers – Top 20 Stocks of the Last 12 Months

Company Price as of 6/30/15 Market Cap ($mil) % Change YTD

% Change Last Quarter % Change LTM

Yonyou Network Technology Co. $7.40 $10,401.4 135.7% 21.2% 294.6% VASCO Data Security International $30.19 $1,193.6 7.0% 40.2% 160.3% Imperva Inc. $67.70 $2,071.4 37.0% 58.5% 158.6% Paycom Software, Inc. $34.15 $1,993.4 29.7% 6.5% 134.1% Ebix Inc. $32.61 $1,140.8 92.9% 7.6% 131.2% Ellie Mae, Inc. $69.79 $2,052.2 73.1% 26.2% 124.2% Merge Healthcare Incorporated $4.80 $464.2 34.8% 7.4% 111.5% Palo Alto Networks, Inc. $174.70 $14,615.4 42.5% 19.6% 108.3% Infoblox Inc. $26.21 $1,508.6 29.7% 9.8% 99.3% Q2 Holdings, Inc. $28.25 $1,050.6 49.9% 33.6% 98.1% 2U, Inc. $32.19 $1,330.6 63.7% 25.8% 91.5% Kinaxis Inc. $22.31 $531.7 39.7% 6.6% 78.3% Manhattan Associates, Inc. $59.65 $4,401.2 46.5% 17.9% 73.3% Gigamon Inc. $32.99 $1,094.6 86.1% 55.3% 72.4% Proofpoint, Inc. $63.67 $2,509.9 32.0% 7.5% 70.0% Attunity, Ltd. $13.07 $209.5 21.6% 30.0% 68.2% Paylocity Holding Corporation $35.85 $1,814.9 37.3% 25.2% 65.7% Fortinet Inc. $41.33 $7,008.0 34.8% 18.3% 64.5% Tableau Software, Inc. $115.30 $8,203.5 36.0% 24.6% 61.6% Blackbaud Inc. $56.95 $2,623.2 32.3% 20.5% 61.1%

Decliners – Weakest 20 Stocks of the Last 12 Months

Company Price as of 6/30/15 Market Cap ($mil) % Change YTD

% Change Last Quarter % Change LTM

Liquid Holdings Group, Inc. $0.21 $12.9 (32.4%) (18.1%) (88.8%) Wave Systems Corp. $0.58 $34.8 (27.3%) (15.7%) (58.7%) Amber Road, Inc. $7.02 $182.9 (31.3%) (24.1%) (56.5%) BIO-key International, Inc. $0.22 $14.2 (2.2%) 7.5% (56.1%) ChannelAdvisor Corporation $11.95 $298.6 (44.6%) 23.3% (54.7%) Datawatch Corporation $6.98 $79.9 (22.4%) 2.8% (53.3%) A10 Networks, Inc. $6.44 $396.8 47.7% 48.7% (51.6%) iCAD, Inc. $3.24 $50.8 (64.7%) (66.2%) (49.5%) Support.com, Inc. $1.41 $76.6 (33.2%) (9.6%) (48.0%) Castlight Health, Inc. $8.14 $763.3 (30.4%) 4.9% (46.4%) Xero Limited. $12.23 $1,652.8 (3.0%) (32.3%) (46.2%) Violin Memory, Inc. $2.45 $236.3 (48.9%) (35.0%) (44.7%) Marin Software Incorporated $6.74 $243.8 (20.3%) 7.2% (42.7%) OPOWER, Inc. $11.51 $587.1 (19.1%) 13.6% (38.9%) Jive Software, Inc. $5.25 $392.8 (12.9%) 2.3% (38.3%) MobileIron, Inc. $5.91 $460.9 (40.7%) (36.2%) (37.9%) CYREN Ltd. $1.89 $66.0 9.9% (37.6%) (34.4%) Covisint Corporation $3.27 $127.6 23.4% 61.1% (32.7%) Solera Holdings Inc. $44.56 $2,990.8 (12.3%) (13.4%) (32.7%) Accretive Health, Inc. $5.50 $538.7 (19.8%) (4.8%) (29.5%) _____________________ Source: Capital IQ.



Highest Growth Companies

Company Enterprise

Value

Revenue Revenue Growth EV/Revenue

LTM 2015 2015E 2016E 2015E 2016E 2015E 2016E

Hortonworks, Inc. $927.3 $60.3 $97.4 $142.5 111.5% 46.3% 9.5 6.5

Castlight Health, Inc. $577.5 $53.2 $76.1 $118.8 66.8% 56.1% 7.6 4.9

Mobileye N.V. $11,095.3 $153.6 $219.5 $351.4 52.8% 60.1% 50.5 31.6

Zendesk, Inc. $1,609.3 $144.2 $194.1 $265.3 52.7% 36.7% 8.3 6.1

New Relic, Inc. $1,461.0 $110.4 $147.9 $198.9 52.7% 34.5% 9.9 7.3

Shopify Inc. $2,594.3 $123.6 $159.9 $212.6 52.3% 32.9% 16.2 12.2

Tableau Software, Inc. $7,487.8 $468.2 $618.5 $842.1 49.9% 36.1% 12.1 8.9

FireEye, Inc. $7,248.5 $477.1 $631.3 $865.9 48.3% 37.2% 11.5 8.4

Silver Spring Networks, Inc. $506.5 $290.7 $282.8 $325.2 47.8% 15.0% 1.8 1.6

Attunity, Ltd. $198.7 $38.9 $52.5 $70.1 47.3% 33.4% 3.8 2.8

Nimble Storage, Inc. $1,983.7 $252.4 $334.4 $460.7 46.9% 37.8% 5.9 4.3

Demandware, Inc. $2,471.2 $178.3 $233.8 $311.6 45.6% 33.3% 10.6 7.9

Workday, Inc. $13,166.9 $879.1 $1,145.0 $1,582.0 45.3% 38.2% 11.5 8.3

ServiceNow, Inc. $11,117.7 $755.4 $989.8 $1,345.3 45.0% 35.9% 11.2 8.3

Xero Limited. $1,470.6 $95.0 $126.0 $198.4 45.0% 57.4% 11.7 7.4

HubSpot, Inc. $1,504.2 $129.9 $167.0 $214.0 44.1% 28.2% 9.0 7.0

Wix.com Ltd. $828.1 $157.5 $203.0 $270.6 43.1% 33.3% 4.1 3.1

Textura Corporation $647.3 $68.4 $90.0 $126.1 43.0% 40.1% 7.2 5.1

Cerner Corporation $23,704.0 $3,526.6 $4,727.8 $5,399.6 42.7% 14.2% 5.0 4.4

Palo Alto Networks, Inc. $14,367.4 $822.4 $1,052.6 $1,382.7 42.5% 31.4% 13.6 10.4

Qihoo 360 Technology Co. Ltd. $8,845.0 $1,509.9 $1,970.4 $2,644.0 41.7% 34.2% 4.5 3.3

HealthEquity, Inc. $1,703.1 $97.5 $123.4 $160.5 40.5% 30.0% 13.8 10.6

Ellie Mae, Inc. $1,980.3 $183.5 $226.7 $278.7 40.3% 23.0% 8.7 7.1

Marketo, Inc. $1,088.0 $163.7 $209.1 $276.8 39.4% 32.4% 5.2 3.9

Arista Networks, Inc. $4,997.0 $645.9 $800.2 $1,008.1 37.0% 26.0% 6.2 5.0

CyberArk Software, Ltd. $1,797.1 $118.5 $140.7 $181.2 36.7% 28.7% 12.8 9.9

_____________________ Source: Capital IQ. LTM as of June 30. Companies are ranked by 2015E revenue growth.



On a relative basis, software stocks in the SaaS segment historically have registered the highest market multiples; this trend continued through Q2 2015.

Median LTM Revenue Trading Multiples

Median LTM EBITDA Trading Multiples

_____________________ Source: Capital IQ. Indices include the companies listed on Pages 1-2.

0x1x2x3x4x5x6x7x

30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15

Applications Infrastructure Security SaaS IT Conglomerates

5.7x

3.7x3.6x3.8x

2.4x

5x10x15x20x25x30x35x40x

30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15

Applications Infrastructure Security Saas IT Conglomerates

27.1x

18.4x14.7x17.3x

8.4x



LTM Trading Multiples for Applications Sub-Segments Revenue EBITDA

LTM Trading Multiples for Infrastructure Sub-Segments Revenue EBITDA

LTM Trading Multiples for Security Sub-Segments Revenue EBITDA

_____________________ Source: Capital IQ.

6.3x

3.3x3.8x 3.7x

2.7x

4.7x

3.5x3.1x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

ERP & HCM CRM &Marketing

InformationManagement& Analyt ics

PLM &Eng ineering

SCM &Logistics

Financial IT HealthcareIT

OtherVertical

Solutions

17.0x

24.5x

20.3x18.2x

23.4x 22.3x

18.9x

15.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

ERP & HCM CRM &Marketing

InformationManagement& Analyt ics

PLM &Eng ineering

SCM &Logistics

Financial IT HealthcareIT

OtherVertical

Solutions

3.3x

4.9x

2.2x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

App lication& Data

Network &Systems

Storage

21.1x

17.3x

7.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

App lication& Data

Network &Systems

Storage

3.3x3.6x

0.0x

1.0x

2.0x

3.0x

4.0x

Conten t Providers Network Security &IAM

12.8x

17.9x

0.0x

5.0x

10.0x

15.0x

20.0x

Conten t Providers Network Security &IAM



The charts presented below demonstrate that for each of the segments profiled in this report, average valuation multiples (on forward revenue and EBITDA) have generally surpassed the pre-crash levels of December 2006, even though forward revenue growth estimates are below the levels seen eight-plus years ago. We believe the main factors contributing to this phenomenon include: (1) M&A activity driven by an abundance of corporate cash and private equity capital chasing software opportunities, (2) scarcity created by the numerous acquisitions of publicly traded software companies, and (3) the difficulty faced by investors in finding well-valued growth investments, resulting in willingness to pay more for growth.

Forward Revenue Multiples

Forward EBITDA Multiples

Forward Revenue Growth Estimates

_____________________ Source: Capital IQ. Current estimates as of June 30, 2015.

3.24x 2.87x

4.39x3.47x

4.59x

1.80x 1.48x 1.80x 1.41x 1.71x2.52x

3.53x 3.82x4.10x

5.36x

2.63x

4.47x 4.22x5.18x 5.46x

0.00x

1.50x

3.00x

4.50x

6.00x

7.50x

IT Conglomerates Applications Infrastructure Security SaaS

CY2007E Multiples as of Dec 2006 CY2009E Multiples as of March 2009 CY2012E Multiples as of March 2012 CY2015E Multiples as of June 2015(Pre-Crash) (Bottom of Market) (Current)

Aver

age F

orwa

rd E

V/Re

venu

e Mul

tiple

(Midpoint from Bottom to Current)

10.6x13.7x

18.4x

10.8x

22.2x

6.3x 7.5x 6.9x 5.8x

12.1x

7.6x

13.8x 14.7x 14.1x

22.7x

8.0x

17.7x14.4x 15.7x

23.7x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x



Aver

age F

orwa

rd E

V/EB

ITDA

Mul

tiple


11.1%17.6% 16.7%

29.7% 31.0%

(7.3%)

5.5%

31.6%

9.9%16.6%

5.7%

29.5%

17.5%21.6%

25.4%

(0.4%)

16.2% 18.9% 17.9%25.3%

-15%

-5%

5%

15%

25%

35%


CY2007E Growth as of Dec 2006 CY2009E Growth as of March 2009 CY2012E Growth as of March 2012 CY2015E Growth as of June 2015(Pre-Crash) (Bottom of Market) (Current)

Aver

age %

Grow

th




Forward Revenue Multiples for Applications Sub-Segments

Forward EBITDA Multiples for Applications Sub-Segments

Forward Revenue Growth Estimates for Applications Sub-Segments


2.81x3.56x

2.58x3.14x

2.17x2.92x 2.87x

2.13x1.92x1.23x 1.35x 1.32x

0.67x1.38x 1.65x 1.43x

5.01x 4.62x

3.13x 3.19x 2.80x3.53x

2.76x 2.80x

6.28x

4.31x

5.32x4.37x

3.74x

5.24x

4.21x

3.00x

0.00x

1.50x

3.00x

4.50x

6.00x

7.50x

ERP & HCM CRM & Marketing Information Management &Analytics

PLM & Engineering SCM & Logistics Financial IT Healthcare IT Other Vertical Solutions


Aver

age F

orwa

rd E

V/Re

venu

e Mul

tiple


14.6x17.9x

9.7x11.7x 12.6x

24.3x

13.5x

9.9x9.7x 8.5x5.5x 4.5x 3.3x

9.2x 8.7x6.3x

15.0x17.7x

16.3x

9.7x

16.4x

11.8x13.4x

12.0x

20.6x23.0x

18.7x

14.8x

19.8x 20.3x17.2x

11.0x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x




Aver

age F

orwa

rd E

V/EB

ITDA

Mul

tiple


23.1% 22.7%19.0%

14.8%10.9%

13.3%16.8%

14.0%10.6%

5.3%1.2%

(3.4% )

2.8%

8.8%12.4%

2.4%

25.0%

31.0%

10.9%12.4% 12.1%

18.5% 17.3% 17.9%21.3%

18.7%16.5%

5.1%

12.3%15.9%

18.8%

13.2%

-10%

0%

10%

20%

30%

40%




Aver

age %

Grow

th




Forward Revenue Multiples for Infrastructure & Security Sub-Segments

Forward EBITDA Multiples for Infrastructure & Security Sub-Segments

Forward Revenue Growth Estimates for Infrastructure & Security Sub-Segments


3.90x

5.03x4.61x

3.79x3.15x

1.85x 2.05x1.18x 1.49x 1.34x

3.24x

5.10x

2.43x

3.53x4.47x4.33x 4.57x

2.77x

5.65x4.99x

0.00x

1.50x

3.00x

4.50x

6.00x

7.50x

Application & Data Network & Systems Storage Content Providers Network Security & IAM


Aver

age F

orwa

rd E

V/Re

venu

e Mul

tiple


19.2x

15.6x

24.1x

10.9x 10.7x

6.9x 7.0x 6.8x 5.7x 5.9x

14.8x 15.4x

12.4x9.2x

17.1x14.5x

16.0x

9.4x11.9x

17.4x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x



Aver

age F

orwa

rd E

V/EB

ITDA

Mul

tiple


13.3%18.8%

21.3%16.7%

40.0%

5.9% 5.5% 3.7% 3.5%

15.3%18.3% 17.1% 16.6% 12.9%

27.2%22.7%

19.8%

7.0%11.1%

20.7%

0%5%

10%15%20%25%30%35%40%45%



Aver

age %

Grow

th




Software revenue multiples correlate much more heavily with revenue growth than with profitability.

Revenue Multiple vs. Revenue Growth – Applications

Revenue Multiple vs. Revenue Growth – Infrastructure & Security

Revenue Multiple vs. EBITDA Margin – Applications

Revenue Multiple vs. EBITDA Margin – Infrastructure & Security

_____________________ Source: Capital IQ. LTM as of June 30, 2015.

R² = 0.316

-6.0x-4.0x-2.0x0.0x2.0x4.0x6.0x8.0x

10.0x12.0x14.0x16.0x

(80.0%) (60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0% 80.0%

2015E

Reven

ue Mu

ltiple

2015 Revenue Growth

R² = 0.3915

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

(20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

2015

E Re

venu

e Mult

iple

2015 Revenue Growth

R² = 0.0085

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

(80.0%) (60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0% 80.0%

2015

E Rev

enue

Multip

le

LTM EBITDA Margin

R² = 0.0146

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

(60.0%) (40.0%) (20.0%) 0.0% 20.0% 40.0% 60.0% 80.0%

2015

E Re

venu

e Mult

iple

LTM EBITDA Margin



Median 2015E Revenue Growth for Applications Sub-Segments/SaaS/IT Conglomerates

Median LTM Gross Margin for Applications Sub-Segments/SaaS/IT Conglomerates

Median LTM EBITDA Margin for Applications Sub-Segments/SaaS/IT Conglomerates

_____________________ Source: Capital IQ. As of June 30, 2015.

17.6% 16.7%

8.8%

3.0%

11.1% 11.7%13.9% 13.5%

21.9%

(0.8%)-4%

0%

4%

8%

12%

16%

20%

24%

ERP & HCM CRM & Marketing IM & Analytics PLM &Engineering

SCM & Logistics Financial IT Healthcare IT Other VerticalSolutions

SaaS IT Conglomerates

63.0% 64.2%

72.4%

84.5%

67.6%

55.2% 54.5% 55.6%

67.6%61.2%

0%

15%

30%

45%

60%

75%

90%




4.2%

(3.7%)

3.4%

21.4%

12.5%15.8% 16.8%

8.3%

(6.7%)

30.3%

-10%

0%

10%

20%

30%

40%






Median 2015E Revenue Growth for Infrastructure and Security Sub-Segments

Median LTM Gross Margin for Infrastructure and Security Sub-Segments

Median LTM EBITDA Margin for Infrastructure and Security Sub-Segments

_____________________ Source: Capital IQ. As of June 30, 2015.

12.9%

18.0%

(4.4%)

4.8%

18.5%

-8%

-4%

0%

4%

8%

12%

16%

20%

24%

Application & Data Network & Systems Storage Content Providers Network Securityand IAM

68.6%

81.3%

68.9%

83.4%

72.5%

0%

15%

30%

45%

60%

75%

90%


10.9%

7.3%

0.7%

19.5%

2.8%

0%

5%

10%

15%

20%


Software M&A Analysis


The software sector has registered substantial levels of M&A activity in recent years. Since the start of 2007, the category has witnessed over 5,900 majority-stake M&A transactions (within the scope of this report), with aggregate reported value of $417 billion (for the 1,600+ deals with value disclosed).

Acquisitions will continue to be a key part of successful growth strategies for leading software companies. Drivers of consolidation activity include portfolio expansion, strong balance sheets, access to innovation, vendor consolidation, private equity activity, diversification, and scale economies.

Software M&A Activity by Deal Size

_____________________ Source: Capital IQ, Dealogic, and Robert W. Baird & Co. M&A analysis. YTD as of June 30.

M&A deal count in Q2 2015 exceeded both Q1 2015 and Q2 2014 levels. Furthermore, aggregate dollar volume of $19 billion (for the 39 deals with a disclosed value) was above the average for the preceding four quarters. For the seventh consecutive quarter, the deal count was above the level registered in the year-ago period, after seven consecutive year-over-year declines on a quarterly basis.

Software M&A Activity by Quarter

_____________________ Source: Capital IQ, Dealogic, and Robert W. Baird & Co. M&A analysis.

743632

510652

767 733 653808

402 460

$0

$25

$50

$75

0200400600800

1,000

2007 2008 2009 2010 2011 2012 2013 2014 YTD 2014 YTD 2015Total Deals 743 632 510 652 767 733 653 808 402 460# of Deals - >$1B 13 2 6 15 11 13 16 10 6 9# of Deals - Middle Market 213 221 161 189 189 126 110 140 70 68# of Deals - Undisclosed 517 409 343 448 567 594 527 658 326 383Deal Value $68 $29 $32 $52 $57 $40 $41 $66 $39 $31

# of Deals - Undisclosed # of Deals - Middle Market # of Deals - >$1B Deal Value($ in billions)

Deal

Cou

nt Deal Value

153189 183 216 213 193 222 238 217

$0$6$12$18$24$30

050

100150200250

Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 LTM QuarterAverage

Total Deals 153 189 183 216 213 193 222 238 217# of Deals - >$1B 4 6 4 2 4 0 4 5 3# of Deals - Middle Market 28 40 32 38 37 33 34 34 35# of Deals - Undisclosed 121 143 147 176 172 160 184 199 179Deal Value $7 $13 $27 $12 $22 $4 $11 $19 $14

# of Deals - Undisclosed # of Deals - Middle Market # of Deals - >$1B Deal Value($ in billions)

Deal

Cou

nt Deal Value

Software M&A Analysis


Software companies continue to trade at attractive valuations and multiples in M&A transactions. From 2007 through June 30, 2015, the median EV/revenue ratio was 2.2x (over a total of 426 deals with this data available). The median EV/EBITDA ratio was 15.6x over the same period (over a total of 186 transactions). Narrowing the scope to deals with public company targets since the start of 2010, the median EV/revenue ratio for this group was 3.2x, and the median EV/EBITDA multiple was 20.7x.

Annual Median Transaction Multiples

_____________________ Source: Capital IQ, Dealogic, and Robert W. Baird & Co. M&A analysis. LTM as of June 30.

2.1x 1.9x 1.5x 2.3x 3.0x 2.4x 2.5x 2.5x 2.8x

20.1x16.4x

11.9x 12.9x

17.7x15.5x

18.2x13.9x

21.0x

0.0x

6.0x

12.0x

18.0x

24.0x

2007 2008 2009 2010 2011 2012 2013 2014 LTM 2015

LTM Revenue LTM EBITDA

Selected Noteworthy Software M&A Transactions


Date Announced Acquiror Target

Total Transaction Value ($mil)

Enterprise Value / LTM

Revenue EBITDA

06/15/15 $245.2 9.8x

06/15/15

4,547.1 4.7 36.1x

05/27/15

533.5 5.0

05/08/15

350.0 0.8

04/30/15

421.3 3.0

04/07/15

810.0 3.8

04/07/15

5,343.1 4.6 25.6

03/30/15

1,250.0 4.8 21.0

03/24/15

1,014.3 3.2 43.0

03/24/15

215.0 3.6

03/02/15

546.6 3.8

02/05/15

268.4 3.2

12/18/14

208.5 3.7 54.7

12/5/14

306.9 2.3

11/5/14

522.1 3.6 9.6

09/27/14

4,533.9 3.7 23.8

09/22/14

320.0 1.9

09/18/14

8,468.0 11.5

09/15/14

2,302.4 2.8 13.7

09/02/14

2,366.4 2.9 24.5

07/09/14

610.0 1.5

06/23/14

5,259.3 3.4 17.5

06/13/14

2,613.4 12.6 53.6

03/18/14

930.0 3.0

03/06/14

453.3 7.0

02/19/14

375.0 4.7

01/30/14

746.4 4.1

_____________________ Source: Dealogic, Capital IQ, and Robert W. Baird & Co. M&A analysis.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://logonoid.com/verint-logo/&ei=qYaVVbrdHIjZtQXK34PQDw&bvm=bv.96952980,d.b2w&psig=AFQjCNF-CBWjwuISsMm46MS7gqCHQW09xQ&ust=1435949092146644

http://www.acision.com/

http://www.coxautoinc.com/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.dealertrack.com/public/PLI/ProblemsMainEntry.aspx?scriptok%3DY&ei=YYeVVa-lNIPstQW9hZH4Bg&bvm=bv.96952980,d.b2w&psig=AFQjCNHT5trH8SznOvDcrywT9W5fSwMIdA&ust=1435949274438087

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://community.spiceworks.com/lg/ca_nimsoft_monitor_trial&ei=zoeVVZWbNoW4sAXU6YC4Cw&bvm=bv.96952980,d.b2w&psig=AFQjCNGXGac7mb7g-sVO0xSw3LCIibTuoA&ust=1435949337536201

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.rallydev.com/&ei=GYiVVYC7J4G4sAWx6JOoBw&bvm=bv.96952980,d.b2w&psig=AFQjCNEncoXeNnVraqbK3i2uWWM98GEryg&ust=1435949444044994

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.prnewswire.com/news-releases/gravity4-announces-6th-acquisition-of-zurmo-adding-crm-to-its-cross-platform-enterprise-app-center-300019647.html&ei=r4iVVc2_M8GSsQW-25_IBg&bvm=bv.96952980,d.b2w&psig=AFQjCNFWJhf3J6R9M6ESFEZbB8B70RmCuQ&ust=1435949598681855

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://rocketfuel.com/about-rocket-fuel/media-kit&ei=5oiVVab-KMu_sAWo4JugBw&bvm=bv.96952980,d.b2w&psig=AFQjCNHqs-Vtt-64DJ4Yxymk6lHxZ0jXFA&ust=1435949644848969

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.metaswitch.com/resources/images/francisco-partners-logo&ei=TYmVVdj_JMSfsAXYyaPQDQ&bvm=bv.96952980,d.b2w&psig=AFQjCNFsbPMibI_HPo2M4t_FJXDTyjBWHw&ust=1435949752592910

http://www.clicksoftware.com/

http://info.singtel.com/personal/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.trustwave.com/&ei=M4qVVfHuL4P2sAWP8oeQAw&bvm=bv.96952980,d.b2w&psig=AFQjCNGRb-57rv8McMAfILkcHWcF-aVcZg&ust=1435949995673750

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://evpa.eu.com/member/permira/&ei=-oqVVZOpEYiTsAX-hbmICw&bvm=bv.96952980,d.b2w&psig=AFQjCNG6iLuZirnUIQMiuaj9hnwmdRuq6g&ust=1435950195538447

http://www.cppib.com/en/home.html

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://careers.informatica.com/&ei=h4qVVYelN4b6sAXymb6gBA&bvm=bv.96952980,d.b2w&psig=AFQjCNGfJM4r79PeWnYbmUmxMzcVQwHAzw&ust=1435950082393819

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.dakotafinancialnews.com/td-securities-boosts-dh-corp-price-target-to-c45-00-dh/65686/&ei=O_VVVfueNYn4gwTmxYHoDA&bvm=bv.93564037,d.eXY&psig=AFQjCNEg6dizDasmVZXdhkDQK5_W8o7VUA&ust=1431783092393329

http://www.fundtech.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://logosandbrands.directory/lexmark-international-inc/&ei=XvZVVczUCMK_ggTqtIDIDw&bvm=bv.93564037,d.eXY&psig=AFQjCNGTdKRbR3iO9tN8lulDS8PLUaVA4w&ust=1431783337228523

http://www.kofax.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.dakotafinancialnews.com/stamps-com-price-target-raised-to-65-00-stmp/96538/&ei=H_dVVY35D5KCgwSBhYHYBg&bvm=bv.93564037,d.eXY&psig=AFQjCNGQcAwh-X7JBWi1NVyE865926APNQ&ust=1431783580972904

http://www.endicia.com/

http://www.mitel.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://me-newswire.net/news/mavenir-systemsreg-announces-an-agreement-to-acquire-ulticom-inc/en&ei=9AZWVZ3PN4HZggThj4DIAw&bvm=bv.93564037,d.eXY&psig=AFQjCNEMtg1g0Ygt-pvvqFoNafeD_JwFeg&ust=1431787630819377

http://www.e2open.com/

https://us.dealertrack.com/content/dealertrack/en.html

http://incadea.com/pages/en.php

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://demodia.com/who-we-are/partners&ei=rH9vVfOsJIPRtQWRuIDwAw&bvm=bv.94911696,d.aWw&psig=AFQjCNEH1HjoWEmLjRFO7Vgu-85zmv47hQ&ust=1433456924528419

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Actuate_Corporation_logo.png&ei=BoBvVbWCIoifsAWSl4DYBw&bvm=bv.94911696,d.aWw&psig=AFQjCNGB7uH_4s3Mpg79ygEwfTLNTgKZKw&ust=1433456990115958

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.darkdaily.com/jjs-ortho-clinical-diagnostics-business-snapped-up-by-carlyle-group-for-4-15-billion-in-a-sale-that-will-impact-ocds-clinical-laboratory-customers&ei=QIBvVYSTNYm-sAWQuYDoDw&bvm=bv.94911696,d.aWw&psig=AFQjCNE63tbaYKaUMAk40jGOaleU_LMSLg&ust=1433457075482592

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/Euromoney_Institutional_Investor&ei=qIBvVbfpLYucsAXpqYIg&bvm=bv.94911696,d.aWw&psig=AFQjCNF9RorvLMwXIMFStvPmaCWeNoQwLg&ust=1433457145020738

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.financeasia.com/News/390480,dealogic-league-table-roundup-september-19.aspx&ei=34BvVfDZFMa-sAXA4YHQAg&bvm=bv.94911696,d.aWw&psig=AFQjCNHfOO7nY8y2CQA84AZ45UJLKWM_Kw&ust=1433457234236840

http://www.vistaequitypartners.com/

http://www.tibco.com/

http://www.symphonytg.com/

http://construction.com/

http://www.sap.com/index.html

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.americanbankingnews.com/2015/06/04/micro-focus-international-plcs-buy-rating-reiterated-at-canaccord-genuity-mcro-5/&ei=WqNwVZ6uB4LZtQXXgoPwBw&bvm=bv.94911696,d.b2w&psig=AFQjCNEiTosX7hCm57j3iidWBGBiHqKsGg&ust=1433531605639211

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.ovationincentives.com/case-study/attachmate.html&ei=pKNwVbqtDsPDsAWquoOoBA&bvm=bv.94911696,d.b2w&psig=AFQjCNHrIDw68lhPV8SSitzkRaAom9jP9Q&ust=1433531676833557

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.compuware.com/&ei=FaRwVcf8I4zJtQWi9YHgDg&bvm=bv.94911696,d.b2w&psig=AFQjCNEKdvHmvF-0KBOUrA_UndUMELC4Yg&ust=1433531787173856

http://www.teleperformance.com/en-us/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://contactcenterworld.com/company/aegis-bpo-services-limited.aspx&ei=tbRwVbCiMsTnsAWZxoDYAQ&bvm=bv.94911696,d.aWw&psig=AFQjCNEHw8cYrfNc0h2mPpY8aEDt3D0I3g&ust=1433536033851814

http://www.travelclick.com/en

http://www.serena.com/index.php/en

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://cobre.eletrica.ufpr.br/chipin/&ei=B61wVcalHcausAWzqoL4BQ&bvm=bv.94911696,d.aWw&psig=AFQjCNHBOoxdhL0HwbnE6PGvx-MpJCMaQA&ust=1433534083844619

http://www.coverity.com/

http://www.3ds.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Accelrys_logo.svg&ei=v65wVZWoJ4OKsAW_1oNY&bvm=bv.94911696,d.aWw&psig=AFQjCNEIhgEpEQur99l7D_hJaUnVzVEMPA&ust=1433534512569860

Selected Noteworthy Software M&A Transactions


Date Announced Acquiror Target

Total Transaction Value ($mil)

Enterprise Value / LTM

Revenue EBITDA

12/31/13

$1,050.0 10.5x

12/20/13 1,650.6 7.9

12/02/13

370.0 7.5

12/02/13

1,650.0 5.0

11/18/13

1,741.2 2.6 17.8x

11/07/13

277.3 3.3 27.7

09/30/13

1,026.6 2.1

07/23/13

1,637.5 5.8 18.5

07/22/13

2,394.8 8.9

06/27/13

600.0 10.3

06/23/13

398.7 2.8 23.1

06/13/13 283.6 1.2 7.1

06/04/13

2,633.9 8.0

05/19/13

1,054.8 2.7 17.9

05/07/13

336.3 6.6

05/06/13

8,376.8 3.1 11.2

05/05/13

371.6 7.0

02/04/13

2,009.9 6.0

01/07/13

292.3 1.9

_____________________ Source: Dealogic, Capital IQ, and Robert W. Baird & Co. M&A analysis.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:FireEye,_Inc._logo.svg&ei=-UtvVcPsM4iZsAWg8oIQ&bvm=bv.94911696,d.b2w&psig=AFQjCNFh5l8HmbZDD6hcg0n4-F-ujlSkqQ&ust=1433443686551246

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://commons.wikimedia.org/wiki/File:Mandiant.jpg&ei=Rq9wVcKvAYLXsAWG6IDoCg&bvm=bv.94911696,d.aWw&psig=AFQjCNFjE108hVmfAOY-FbCe1rvx-MUjNw&ust=1433534640112351

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.prweb.com/releases/Prolexic/DOS-DDoS-Mitigation/prweb9732027.htm&ei=XLBwVcKBBMefsAWYo4L4Bw&bvm=bv.94911696,d.aWw&psig=AFQjCNHLE4zCrq5iBsOxy0f7mYyeHIY0Tg&ust=1433534936425874

http://www.ncr.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Digital_Insight_Logo.png&ei=B7JwVcLQPMW2sAXB4oHgDg&bvm=bv.94911696,d.aWw&psig=AFQjCNEnkc0Sqk1jp73n2teN24COQcQ96g&ust=1433535364226749

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://de.wikipedia.org/wiki/Datei:Advent_International_logo.svg&ei=4rJwVYHgA4W_sAXrzoOwCQ&bvm=bv.94911696,d.aWw&psig=AFQjCNGCi2u1f7pPgjypu0dQah2bUguC6w&ust=1433535572327017

http://unit4.com/

http://www.autodesk.com/

http://www.delcam.com/


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.activenetwork.com/blog/active/activenetwork-logo/&ei=BrRwVcTSCojItQWeq4PoBA&bvm=bv.94911696,d.aWw&psig=AFQjCNF_5mJ_yLmK6d-i1xUKYaT6bdK0tw&ust=1433535862203820

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.dakotafinancialnews.com/td-securities-boosts-dh-corp-price-target-to-c45-00-dh/65686/&ei=O_VVVfueNYn4gwTmxYHoDA&bvm=bv.93564037,d.eXY&psig=AFQjCNEg6dizDasmVZXdhkDQK5_W8o7VUA&ust=1431783092393329

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.me-newswire.net/news/harland-financial-solutions-announces-new-head-of-business-development-for-europe-middle-east-and-africa/en&ei=r7VwVfn7FsTjsAXdh4PYBg&bvm=bv.94911696,d.aWw&psig=AFQjCNFjEv5FOF8JtrxqwDjwIQZfxt8WUg&ust=1433536298281244

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/Cisco_Systems&ei=97VwVerjF8TAtQWIyIHIDA&bvm=bv.94911696,d.aWw&psig=AFQjCNF_k2Dlv5YQQ0t-PPEy2dlPGhaaAQ&ust=1433536370262641

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.richsmt.com/EN/product07_eng.html&ei=OLZwVfyYGcPysAWNkoGQAw&bvm=bv.94911696,d.aWw&psig=AFQjCNED8B3fzS_vCUK1w8Xv6sll_4fKTQ&ust=1433536427182729

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://australianbrains.com/2013/05/20/neolane-brings-conversational-marketing-to-australia/&ei=kbZwVZX0MIHpsQXnsoG4Dw&bvm=bv.94911696,d.aWw&psig=AFQjCNH0tpTdam5gYq3VaG3dYTyIbmsSxQ&ust=1433536518885942

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/Keynote_Systems&ei=AbdwVYaCEojYtQWS5YO4BA&bvm=bv.94911696,d.aWw&psig=AFQjCNFW_rkCTH8PlVphfzgWyNzJIbPyzQ&ust=1433536624201279

http://www.simplex.ne.jp/en/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.stocksaints.com/308/exacttarget_et_earnings_report_preview_thursdays_release&ei=a7hwVdO1EYTjsAXjwYLwAQ&bvm=bv.94911696,d.aWw&psig=AFQjCNHcLQlwxfvfFb_6IRTEYTIDtffSWA&ust=1433536963980855


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.prweb.com/releases/2014/02/prweb11602118.htm&ei=zLhwVaTYG8TRtQXxoYOABw&bvm=bv.94911696,d.aWw&psig=AFQjCNFkjAF9RHIBbB6NMk1oHDhawtALlQ&ust=1433537083873683

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.trulia.com/PA/Philadelphia/&ei=LLlwVZf6BMjksAXnmIHwAw&bvm=bv.94911696,d.aWw&psig=AFQjCNG5_AhRnepMPxzPYvnjXWqx9AjK0Q&ust=1433537175234777

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://zillowgroup.mediaroom.com/b2b&ei=gLlwVfPJLsnvsAXHkYGQCg&bvm=bv.94911696,d.aWw&psig=AFQjCNEtMOudD4_OzRM_4p2JDdDgSew4Kw&ust=1433537262691451

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/BMC_Software&ei=T7pwVeCGGMjIsAW8wIHQAQ&bvm=bv.94911696,d.aWw&psig=AFQjCNGnBvw762iy_s6Pe5N9TMD1pZGiJQ&ust=1433537471473414

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.famouslogos.org/logos/mcafee-logo&ei=ubpwVdDcIsWWsAXlgYGQDw&bvm=bv.94911696,d.aWw&psig=AFQjCNH9yVJUK3v29qiZM4fUWuPY2_KEkQ&ust=1433537577120465

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://techwhack.co/mcafee-acquire-stonesoft/&ei=H7twVaj6BYyfsAXqqoCAAQ&bvm=bv.94911696,d.aWw&psig=AFQjCNFj-p-QQHdF0TAUC_I1O5fjnUyxiQ&ust=1433537659956718

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCP7BlsCmiMYCFccvrAodEnUAPA&url=http://www.thetelecomblog.com/2013/02/05/what-does-the-oracle-and-acme-packet-agreement-really-mean/&ei=d9d5Vb6qKMffsAWS6oHgAw&bvm=bv.95277229,d.b2w&psig=AFQjCNFnseNMW0bXRJbiorhtU9qLnJCfWA&ust=1434134742577680

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCOrV6vOmiMYCFYgMrAodhboAEA&url=http://ncnmlg.mlanet.org/jtmtg2011/exhibitors.html&ei=49d5VarYPIiZsAWF9YKAAQ&bvm=bv.95277229,d.b2w&psig=AFQjCNF9ZknI1hk1D9jR2lqWBKHk4vLLfQ&ust=1434134872809359

Recent Software IPOs


Trade Date Issuer Ticker Filing Range Offer Price

Gross Proceeds(1)

($ in millions)

Offer to Current(2)

LTM Revenue

Forward Year

Revenue Growth

06/25/15

APPF $12.00 - 14.00 $12.00 $74.4 17.5% $53.7 N/A

06/25/15

XTLY 10.00 - 12.00 8.00 64.7 7.4% 63.7 N/A

06/18/15 MB 13.00 - 15.00 14.00 100.1 (1.2%) 76.6 N/A

06/04/15 EVH 14.00 - 16.00 17.00 195.5 14.7% 117.9 34.8%

05/20/15

PGND 22.00 - 24.00 25.00 255.9 14.7% 291.1 8.1%

05/20/15

SHOP 14.00 - 16.00 17.00 150.5 99.7% 123.6 33.0%

04/23/15

APIC 16.00 - 18.00 17.00 87.0 (41.6%) 61.9 29.7%

02/11/15 INOV 24.00 - 26.00 27.00 684.8 3.3% 361.5 21.7%

01/22/15

BOX 11.00 - 13.00 14.00 175.0 33.1% 192.6 29.5%

12/11/14 HDP 12.00 - 14.00 16.00 100.0 58.3% 44.2 70.6%

12/11/14 NEWR 20.00 - 22.00 23.00 115.0 53.0% 85.0 31.8%

12/11/14 WK 13.00 - 15.00 14.00 100.8 (1.2%) 106.1 22.7%

11/05/14

UPLD 12.00 - 14.00 12.00 46.2 (23.2%) 60.2 18.9%

10/08/14 HUBS 22.00 - 24.00 25.00 143.8 98.3% 104.1 25.2%

10/02/14 YDLE 11.00 - 13.00 12.00 84.1 20.3% 84.3 19.9%

09/23/14

CYBR 13.00 - 15.00 16.00 98.6 292.6% 75.7 9.6%

07/17/14 TUBE 7.00 - 8.00 7.00 50.3 104.1% 85.7 25.1%

07/17/14

GLOB 10.00 10.00 67.3 204.3% 179.1 18.8%

06/11/14

MOBL 8.00 - 10.00 9.00 115.0 (34.3%) 108.0 23.2%

06/05/14 ANET 36.00 - 40.00 43.00 225.8 90.1% 417.1 21.0%

05/14/14 ZEN 8.00 - 10.00 9.00 115.0 146.8% 83.2 26.0%

04/14/14

PAYC 18.00 - 20.00 15.00 114.6 127.7% 117.0 19.8%

04/03/14

FIVN 9.00 - 11.00 7.00 80.5 (25.3%) 89.3 28.2%

03/27/14

HIVE 9.00 - 11.00 10.00 75.0 (30.2%) 107.1 27.4%

03/20/14 AMBR 10.50 - 12.50 13.00 110.5 (46.0%) 52.5 13.6%

_____________________ Source: Dealogic and Capital IQ. (1) Includes proceeds from exercised overallotments. (2) Represents the percentage change in stock price from trade date to June 30, 2015. (3) Company has been acquired.

http://www.appfolio.com/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://datafox.co/xactly-corp&ei=houVVYe9GIaKsAWm3ba4Cg&bvm=bv.96952980,d.b2w&psig=AFQjCNGJ_ECxqPivFSuILdHg5xcRM4FZVA&ust=1435950331956663

https://www.mindbodyonline.com/

http://www.evolenthealth.com/

http://www.pressganey.com/

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://press.shopify.com/&ei=EYyVVdzeBszwsAXw5pKwCg&bvm=bv.96952980,d.b2w&psig=AFQjCNHOrpR1LSdmMolLhEZOsl18AQCbIg&ust=1435950466740495

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://logonoid.com/box-logo/&ei=UBNWVafJBsK8ggTc-ID4Ag&bvm=bv.93564037,d.aWw&psig=AFQjCNEXKthDfdK9omqf48rQkAMacNBw6A&ust=1431790795843349

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCImeirPMhcYCFUkjrAodMJoAKw&url=http://www.sakurasky.com/sakura-sky-partnership-hortonworks/&ei=jWx4VcmjIMnGsAWwtILYAg&bvm=bv.95039771,d.b2w&psig=AFQjCNE8v2o4DSm8RdBaeKj39tgnOlGltw&ust=1434041865937897

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCKaUgNDMhcYCFUNgrQod6aYAQQ&url=http://newrelic.com/about/media-assets&ei=ymx4VaaHC8PAtQXpzYKIBA&bvm=bv.95039771,d.b2w&psig=AFQjCNFCchh1C0woVV0TaBQhlVu1NgNL_g&ust=1434041919661014

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://tec.wdesk.com/&ei=fztvVdHNCITesAXRwYH4Bw&bvm=bv.94911696,d.b2w&psig=AFQjCNGsv-6UN0dNzyvFkt3ZtWvB2QlsKw&ust=1433439479010792

http://uplandsoftware.com/

http://www.hubspot.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.americanbankingnews.com/2015/06/03/brokerages-expect-yodlee-to-announce-0-07-earnings-per-share-nasdaqydle/&ei=FDxvVYbcJYPutQWwxoLICQ&bvm=bv.94911696,d.b2w&psig=AFQjCNG516YteRIQaPrTFBGDCQ2RnAz7oA&ust=1433439624536867

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNrI5MvThcYCFYc3rAod1vwAAA&url=http://www.smarteranalyst.com/2015/04/08/company-update-nasdaqcybr-cyberark-software-ltd-security-brief-securing-third-party-remote-access-a-weak-link-in-enterprise-it/&ei=GHR4VdrcF4fvsAXW-QM&bvm=bv.95039771,d.b2w&psig=AFQjCNFzI4tXdVlzDC3L2EuIGLcZs7JsdA&ust=1434043715248844

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.madisonboom.com/2013/01/03/wpp-invests-usd70m-in-globant/globant-logo-630/&ei=dD1vVeTFE8XisAWd5YHYAQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGWMfEYlZsc8uIchY9NBvSgjtf_CA&ust=1433439889930919

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://www.mobileiron.com/en/company/press-room/press-and-analyst-resources&ei=ekFvVfmHLYbusAXvn4LIBg&bvm=bv.94911696,d.b2w&psig=AFQjCNFh6FFL2iuiJ2NaJy3Fd8JNgV1e8A&ust=1433441004690358

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.jacobsschool.ucsd.edu/external/external_cap/cap_tech_talks/event.sfe?id=2035&ei=9EFvVZPGF4XosAXqiYLwCQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGN1OWB_MFpg-LBpRNwVagWydyrjQ&ust=1433441124740626

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:Zendesk_logo_RGB.png&ei=VkJvVf6TPMivsAX_yIGIDQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGzg9jOlUToLKcxrdjW21JQV2u9Lw&ust=1433441223571576

http://www.paycom.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.five9.com/&ei=-kJvVeiaC4WdsAXYlYL4Dg&bvm=bv.94911696,d.b2w&psig=AFQjCNF3Dp5fwknrLxTlOvLVvx2e_8aTeQ&ust=1433441400755036

http://www.aerohive.com/

http://www.amberroad.com/home.shtml

Recent Software IPOs


Trade Date Issuer Ticker Filing Range Offer Price

Gross Proceeds(1)

($ in millions)

Offer to Current(2)

LTM Revenue

Forward Year

Revenue Growth

03/20/14 ATEN 13.00 - 15.00 15.00 192.7 (57.1%) 141.7 31.7%

03/18/14

PCTY 14.00 - 16.00 17.00 137.7 110.9% 90.5 13.4%

03/13/14 CSLT 13.00 - 15.00 16.00 204.2 (49.1%) 13.0 67.2%

02/27/14 VRNS 19.00 - 21.00 22.00 121.4 0.4% 74.6 19.4%

11/05/13 CUDA 18.00 - 21.00 18.00 63.7 120.1% 218.0 9.4%

10/15/13 VEEV 16.00 - 18.00 20.00 260.9 40.2% 168.0 24.1%

09/19/13

FEYE 15.00 - 17.00 20.00 303.5 (67.3%) 94.2 53.8%

09/19/13 FUEL 27.00 - 29.00 29.00 116.0 42.2% 135.9 74.2%

09/17/13 BNFT 21.50 - 24.50 26.50 150.4 144.6% 115.2 24.1%

08/08/13 CVT 17.00 - 19.00 21.00 135.2 (71.7%) 159.6 21.7%

07/25/13

LIQD 9.00 - 11.00 9.00 28.6 65.5% 91.2 -100.0%

06/11/13

GIMO 18.00 - 20.00 19.00 147.5 22.8% 96.7 28.0%

06/06/13

TXTR 13.00 - 15.00 15.00 75.0 (97.6%) 5.0 -100.0%

05/16/13

MKTO 11.00 - 13.00 13.00 90.6 73.6% 105.8 11.2%

05/16/13 DATA 28.00 - 30.00 31.00 254.2 85.5% 27.3 67.7%

03/21/13

MRIN 11.00 - 13.00 14.00 105.0 115.8% 65.9 19.9%

03/20/13

MODN 12.50 - 14.50 15.50 120.1 271.9% 143.1 25.2%

_____________________ Source: Dealogic and Capital IQ. (1) Includes proceeds from exercised overallotments. (2) Represents the percentage change in stock price from trade date to June 30, 2015. (3) Company has been acquired.

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://aws.amazon.com/marketplace/seller-profile?id=0cda37b3-aa1a-4c9d-8daf-c396572cc98b&ei=tUNvVaT0FMKKyATJ04PACA&bvm=bv.94911696,d.cGU&psig=AFQjCNHfY5BIp_DEMiiio643Cv7QDSkJoQ&ust=1433441568399331

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=https://trademarks.justia.com/774/06/paylocity-77406931.html&ei=MkRvVYqBEc2tyATN8oLwCw&bvm=bv.94911696,d.cGU&psig=AFQjCNFzqSpslF9M0vd1THao8agAr8MTmQ&ust=1433441689154044

http://www.castlighthealth.com/

http://www.varonis.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.demosondemand.com/it/vendors/barracuda.asp&ei=80RvVbSWKMftsAXC34PoAw&bvm=bv.94911696,d.b2w&psig=AFQjCNF7_oNTqy0O35XM7s6e_8Z-Gq2U6Q&ust=1433441884389281

https://www.veeva.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://en.wikipedia.org/wiki/File:FireEye,_Inc._logo.svg&ei=-UtvVcPsM4iZsAWg8oIQ&bvm=bv.94911696,d.b2w&psig=AFQjCNFh5l8HmbZDD6hcg0n4-F-ujlSkqQ&ust=1433443686551246

http://rocketfuel.com/

http://www.benefitfocus.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.mtnonprofit.org/cvent/&ei=s0xvVfayOsGosAXik4DQBw&bvm=bv.94911696,d.b2w&psig=AFQjCNFIAiczBtck0KQOmeuCjlO6QiunBw&ust=1433443875440675

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://globenewswire.com/news-release/2015/03/03/711770/10122870/en/Liquid-Holdings-Group-Announces-Changes-to-Executive-Management-Team.html&ei=8kxvVcizHsOksAWkyYD4DA&bvm=bv.94911696,d.b2w&psig=AFQjCNFSm0kNZC-oHrF97LrTU-Ce_30T-g&ust=1433443943524593

https://www.gigamon.com/

http://www.texturacorp.com/index.html

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.marketo.com/about/contact.php&ei=YE1vVZaqIczusAXqxYDwBw&bvm=bv.94911696,d.b2w&psig=AFQjCNFcx4qQj94BnPWoM3P3Aub0dAugoQ&ust=1433444060723755

http://www.tableau.com/

http://www.marinsoftware.com/

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.insidermonkey.com/blog/what-is-model-n-flatbush-watermill-thinks-its-a-good-buy-253225/&ei=3U1vVeCMDMS3sAWa4oGQBQ&bvm=bv.94911696,d.b2w&psig=AFQjCNGKODuLHj6zttEpj6wWZhh1CfiDxw&ust=1433444178410017

Biographies


PETER KIES – MANAGING DIRECTOR, HEAD OF TECHNOLOGY & SERVICES GROUP

T: +1.414.765.7262 E: [email protected]

Peter Kies is a Managing Director and Head of Baird’s Technology & Services Group. From 2010-2013, Peter was Co-Head of Equity Capital Markets, where he led the group to achieve three consecutive record years. He is a member of the Investment Banking Management Committee, the Capital Commitment Committee and a Director of the Baird Foundation. Prior to assuming joint leadership of the capital markets effort, Peter built and led several investment banking industry teams and, over the past 20+ years, he has extensive experience in originating and executing mergers, acquisitions and equity transactions across a wide range of industries. Since joining Baird in 1992, he has served the firm in numerous capacities, including Chairman of the Investment Banking and firm-wide Recruiting Committees and as a member of the Investment Committee of the Baird Venture Fund. Prior to joining Baird, Peter was a Director of Investments for The Equitable and on the Executive Staff of Governor Tommy Thompson. Peter received his BBA and MS from the University of Wisconsin-Madison and is a member of the University of Wisconsin Foundation Board of Directors.

MIKE MAGLUILO – MANAGING DIRECTOR, TECHNOLOGY INVESTMENT BANKING


Mike Magluilo is a Managing Director in Baird’s Technology & Services Group with a focus on the enterprise software, SaaS, and information technology sectors. Mike’s career includes 20+ years as an investment banker, corporate executive, and technology investor. In addition to a 12-year career as an investment banker with Kidder Peabody, Robert W. Baird and Daniels & Associates, he held senior corporate development roles with Level 3 Communications and VIA Networks. Mike’s prior role with Baird involved several years as a senior investment banker in London helping build Baird’s European investment banking practice. Prior to re-joining Baird in 2014, Mike was a growth stage private technology investor with Delta-v Capital, where he participated in the firm’s investments in Borderfree, Cloud Sherpas, Lytx, LogRhythm, Zayo, and Kony. He was also involved in the firm's exit of its investment in Drillinginfo. Mike graduated summa cum laude with a BS in Finance from the University of Illinois at Urbana-Champaign, where he was an Evans Scholar.

CHASE SANDERS – MANAGING DIRECTOR, TECHNOLOGY INVESTMENT BANKING


Chase Sanders is a Managing Director in Baird’s Technology & Services group, where he focuses on Enterprise Software, SaaS and Healthcare IT. Chase has 23 years of total experience, including 18 years as an advisor to technology businesses and five years as CEO of a growth company. Prior to joining Baird, Chase was a partner and Managing Director with Signal Hill Capital Group, a boutique investment bank focused on growth stage IT companies. Prior to that, Chase was CEO of Atlantis LLC, a consumer home services company that he took from start-up to operations in eight states before successfully exiting the business.

Previously, Chase was the senior east coast software banker with Bear, Stearns in New York, and also served in the media and telecom investment banking group at Bank of America Securities. Chase began his career as a corporate and M&A attorney with the leading law firms of DLA Piper and Hogan Lovells. Chase received a BA in Economics from the University of Virginia, where he was elected to Phi Beta Kappa, a Master in Public Policy from the Harvard Kennedy School of Government, and a JD cum laude from Harvard Law School.

Biographies


JONATHAN HARRISON – MANAGING DIRECTOR, EUROPEAN INVESTMENT BANKING


Jon Harrison has worked in the European Investment Banking industry for 16 years. Jon joined Baird at the end of 2008, after 8 years at Deutsche Bank where he was most recently responsible for the European Business Services franchise. Jon has executed a number of flagship transactions for a variety of corporate and financial investor clients. Since joining Baird he has worked on a number of international Business Services transactions. Prior to investment banking Jon worked as an auditor and an economist. Jon has a first class degree in Economics and an M.Phil. in Finance.

OWEN HART – MANAGING DIRECTOR


Owen Hart joined Baird in 2012 as a Managing Director in its M&A practice. Mr. Hart provides strategic and analytical support on buyside and sellside acquisitions / divestitures, mergers, strategic alternatives, and other financial advisory services across multiple sectors, including Consumer, Technology, Business Services, and Real Estate. Prior to joining Baird, Mr. Hart was a Managing Director and the Head of West Coast Mergers & Acquisitions for Cowen and Company, where he principally focused on Consumer and Technology related M&A activity. Prior to Cowen, Mr. Hart spent four years as a Founding Partner at Thomas Weisel Partners where he led their Consumer, Business Services, Semiconductor, Semiconductor Capital Equipment, and Storage M&A practices. Prior to Thomas Weisel Partners, Mr. Hart held senior banking roles at Montgomery Securities, where he helped found their Business Services Investment Banking practice and led their Business Services M&A practice. Mr. Hart also helped found Lazard Freres & Co.’s Real Estate Group and started his career at Drexel Burnham Lambert, where he was a member of their Real Estate group.

JOHN MORIARTY – MANAGING DIRECTOR, TECHNOLOGY INVESTMENT BANKING


John Moriarty joined Baird in December 2007 and is a Managing Director in the Technology Investment Banking Group. Prior to joining Baird, Mr. Moriarty spent 13 years in the investment banking group at A.G. Edwards (now Wachovia Securities) and established A.G. Edwards’ West Coast Technology Investment Banking practice. During his tenure at A.G. Edwards, Mr. Moriarty led his clients in a variety of transactions including public and private equity financings, convertible securities offerings, buy- and sell-side merger and acquisition assignments, and other financial advisory activities. From 1989 to 1992, Mr. Moriarty worked for KPMG Peat Marwick where he was a senior level auditor responsible for public and private company financial audits.

John received a BS degree in Accounting, cum laude, from Georgetown University, and a MBA in Finance and Marketing from The Kellogg Graduate School of Management at Northwestern University. John is also a graduate from the Securities Industry Institute at The Wharton School of the University of Pennsylvania. John is a member of the Board of Directors of the Second Harvest Food Bank of Santa Clara and San Mateo Counties.

mailto:[email protected]

Biographies


DAVID SILVER – MANAGING DIRECTOR, HEAD OF EUROPEAN INVESTMENT BANKING


David Silver joined Baird in January 1998 having practiced as a corporate and banking lawyer at Berwin Leighton. He is a founder member of Baird’s M&A team in Europe and has extensive experience advising private equity clients, corporates and entrepreneurs in the US and Europe. Mr. Silver is Head of European Investment Banking and is responsible for Baird’s Investment Banking and European business services practice and coverage of the financial sponsor community. Mr. Silver has an MBA, with distinction, from London Business School and a law degree from Leeds University.

mailto:[email protected]

Appendix


Appendix


IT Conglomerates – Operating Statistics & Valuation Multiples

Application Software – Operating Statistics & Valuation Multiples

ERP & HCM


($ in millions except per share data)

6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAHewlett-Packard Company $30.01 73.0% (9.2% ) $54,211 $60,900 $104,262 (5.3% ) 12.4% (1.6% ) 0.6 x 0.6 x 0.6 x 4.7 x 4.7 x 4.7 xInternational Business Machines 162.66 82.8% (7.8% ) 160,177 190,343 83,503 (10.0% ) 27.7% (4.9% ) 2.1 2.3 2.3 8.1 8.2 8.1EMC Corporation 26.39 85.3% 1.9% 51,251 51,851 25,617 4.8% 26.4% 16.0% 2.1 2.0 1.9 9.2 7.7 7.1Microsoft Corporation 44.15 88.2% 8.7% 358,189 294,865 92,853 (0.6% ) 36.6% 1.1% 3.1 3.2 3.0 8.7 8.7 7.9SAP SE 70.00 88.8% (8.3% ) 83,670 89,993 22,648 6.6% 33.9% 5.8% 4.6 4.0 3.8 13.9 11.7 11.0Oracle Corporation 40.30 86.3% 0.7% 174,744 162,769 38,175 (1.7% ) 46.2% 4.1% 4.3 4.3 4.1 10.1 9.2 8.8Cisco Systems, Inc. 27.25 89.9% 13.8% 139,659 106,254 49,895 3.8% 28.0% (0.0% ) 2.2 2.1 2.0 7.9 7.6 7.1Intel Corporation 30.42 80.3% 1.2% 144,289 142,918 55,357 (0.9% ) 41.8% (4.5% ) 2.6 2.6 2.5 5.9 6.2 5.7

Mean 0.1% $145,774 $137,486 $59,039 (0.4%) 31.6% 2.0% 2.7 x 2.6 x 2.5 x 8.6 x 8.0 x 7.5 xMedian 0.9% 141,974 124,586 52,626 (0.8%) 31.0% 0.5% 2.4 2.4 2.4 8.4 7.9 7.5

Revenue EBITDA Valuation Multiples


6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAmerican Software, Inc. $9.50 90.1% 0.4% $268 $206 $110 8.5% 18.3% 79.3% 2.0 x 1.9 x 1.8 x 13.6 x 10.2 x 9.4 xBasWare Oyj 44.56 89.1% (15.4% ) 630 585 167 8.0% 12.7% 116.1% 4.2 3.5 2.9 N/A 27.6 13.8Benefitfocus, Inc. 43.85 91.8% (5.1% ) 1,254 1,191 175 27.0% (22.2% ) N/A 8.0 6.8 5.5 N/A N/A N/AWageWorks, Inc. 40.45 61.7% (16.1% ) 1,445 1,073 335 25.0% 26.7% 107.9% 3.7 3.2 2.8 24.3 12.0 10.0Cornerstone OnDemand, Inc. 34.80 74.0% (24.4% ) 1,877 1,884 340 29.2% 1.4% N/A 6.7 5.5 4.4 N/A N/A N/AHalogen Software Inc. 8.62 96.4% 13.0% 191 147 67 18.6% (7.8% ) N/A 2.5 2.2 1.8 N/A N/A N/AIntuit Inc. 100.77 92.3% 26.5% 27,779 26,194 4,638 1.2% 31.1% 3.1% 6.0 5.6 5.0 24.2 18.1 12.9MINDBODY, Inc. 13.83 85.1% N/A 541 707 N/A N/A N/A N/A 9.2 N/A N/A N/A N/A N/ANetSuite Inc. 91.75 80.6% 5.6% 7,213 7,031 733 31.8% 7.0% N/A 11.8 9.6 7.4 N/A N/A N/APaycom Software, Inc. 34.15 85.9% 134.1% 1,993 1,984 206 36.5% 17.8% 66.5% 11.7 9.6 7.5 N/A N/A 40.0Paylocity Holding Corporation 35.85 94.4% 65.7% 1,815 1,722 170 32.7% 4.8% N/A 12.2 10.1 8.0 N/A N/A N/AQAD Inc. 26.43 95.1% 25.5% 476 360 295 0.0% 8.5% 21.2% 1.2 1.2 1.2 17.0 14.4 12.3Sage Group plc 8.06 87.8% 25.8% 8,687 9,488 2,236 8.0% 29.9% 13.7% 4.7 4.2 4.0 16.7 14.2 13.4Shopify Inc. 33.95 80.6% N/A 2,566 2,594 160 52.2% (5.1% ) N/A N/A N/A 12.2 N/A N/A N/AThe Ultimate Software Group, In 164.34 89.7% 18.9% 4,697 4,584 616 21.8% 24.1% 103.9% 8.7 7.4 6.2 N/A 30.8 24.4TOTVS S.A. 12.54 92.1% (25.1% ) 2,034 1,992 608 (8.8% ) 24.5% (3.5% ) 3.5 3.3 3.0 15.7 13.4 12.1Tyler Technologies, Inc. 129.38 96.9% 41.8% 4,357 4,162 573 16.3% 27.0% 44.1% 8.1 7.3 6.3 36.2 26.8 22.3Upland Software, Inc. 9.22 75.6% N/A 141 138 71 10.4% 5.0% N/A 2.1 1.9 1.8 N/A 38.7 21.1Workday, Inc. 76.39 78.4% (15.0% ) 14,590 13,167 1,145 45.3% 5.2% N/A 15.0 11.5 8.3 N/A N/A N/AXero Limited. 12.23 67.1% (46.2% ) 1,653 1,471 126 45.4% (33.7% ) N/A N/A 11.6 7.4 N/A N/A N/AXactly Corporation 8.59 85.1% N/A 238 249 N/A N/A N/A N/A 3.9 N/A N/A N/A N/A N/AYonyou Network Technology Co 7.40 61.7% 294.6% 10,401 10,459 822 16.5% 16.5% 21.5% 14.8 12.7 10.7 N/A N/A N/A

Mean 28.0% $4,311 $4,154 $680 21.3% 9.6% 52.2% 7.0 x 6.3 x 5.4 x 21.1 x 20.6 x 17.4 xMedian 9.3% 1,846 1,803 315 20.2% 10.6% 44.1% 6.3 5.6 5.2 17.0 16.3 13.4


Appendix


CRM & Marketing

IM & Analytics



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAcxiom Corporation $17.58 78.8% (18.9% ) $1,374 $1,521 $867 (18.7% ) 19.0% (5.3% ) 1.5 x 1.8 x 1.8 x 10.3 x 9.2 x 9.9 xAdobe Systems Incorporated 81.01 96.0% 12.0% 40,314 38,805 4,845 16.8% 34.3% 120.0% 8.9 8.0 6.5 42.2 23.3 16.4Bazaarvoice, Inc. 5.89 62.7% (25.3% ) 472 422 201 8.1% (2.0% ) N/A 2.2 2.1 1.9 N/A N/A 47.6Blackbaud Inc. 56.95 94.8% 61.1% 2,623 2,897 637 12.9% 24.2% 65.7% 5.0 4.5 4.1 30.5 18.8 17.7Callidus Software Inc. 15.58 90.0% 30.5% 861 771 166 21.7% 13.0% N/A 5.3 4.6 3.9 N/A 35.7 23.6ChannelAdvisor Corporation 11.95 44.0% (54.7% ) 299 237 95 12.2% (14.8% ) N/A 2.7 2.5 2.2 N/A N/A N/AConstant Contact, Inc. 28.76 66.6% (10.4% ) 925 746 375 13.0% 19.7% 98.1% 2.2 2.0 1.7 18.4 10.1 8.1Cvent, Inc. 25.78 86.4% (11.4% ) 1,071 895 182 28.3% 9.0% 220.8% 5.9 4.9 4.0 N/A N/A 31.2Demandware, Inc. 71.08 96.8% 2.5% 2,660 2,471 234 45.6% 4.6% N/A 13.9 10.6 7.9 N/A N/A N/AeGain Corporation 5.01 70.2% (26.0% ) 134 143 82 7.2% 1.3% N/A 1.8 1.7 N/A N/A N/A N/AFive9, Inc. 5.23 65.5% (27.4% ) 261 237 122 18.3% (12.7% ) N/A 2.2 1.9 1.7 N/A N/A N/AHubSpot, Inc. 49.58 90.3% N/A 1,640 1,504 167 44.1% (15.0% ) N/A 11.6 9.0 7.0 N/A N/A N/AinContact, Inc. 9.87 82.7% 7.4% 607 569 212 23.2% 4.8% N/A 3.1 2.7 2.3 N/A N/A 37.4Interactive Intelligence Group Inc 44.47 78.5% (20.8% ) 958 898 385 12.7% 3.4% N/A 2.6 2.3 2.1 N/A N/A N/AJive Software, Inc. 5.25 60.1% (38.3% ) 393 279 198 10.6% 0.2% N/A 1.5 1.4 1.3 N/A N/A 34.3LinkedIn Corporation 206.63 74.8% 20.5% 26,028 23,596 2,908 31.1% 21.1% 164.3% 9.9 8.1 6.2 N/A 38.4 24.5LivePerson Inc. 9.81 66.7% (3.3% ) 560 519 245 16.7% 7.9% 83.5% 2.3 2.1 1.9 46.9 26.9 18.9Marin Software Incorporated 6.74 55.5% (42.7% ) 244 194 115 15.5% (10.7% ) N/A 1.9 1.7 1.4 N/A N/A N/AMarketo, Inc. 28.06 78.8% (3.5% ) 1,185 1,088 209 39.4% (12.6% ) N/A 6.6 5.2 3.9 N/A N/A N/ANICE Systems Ltd. 63.60 91.4% 57.6% 3,808 3,499 1,000 (1.1% ) 24.5% 29.6% 3.4 3.5 3.2 17.5 14.3 12.7salesforce.com, inc. 69.63 88.7% 19.9% 45,646 46,666 6,548 21.9% 19.3% 651.6% 8.2 7.1 5.9 N/A 36.8 31.1ServiceSource International, Inc 5.47 92.6% (5.7% ) 466 377 245 (9.9% ) (7.8% ) N/A 1.4 1.5 1.5 N/A N/A N/ATubeMogul, Inc. 14.29 60.0% N/A 483 447 154 34.7% (6.8% ) N/A 3.6 2.9 2.3 N/A N/A N/AVeeva Systems Inc. 28.03 83.3% 10.1% 3,693 3,264 397 26.7% 29.6% 60.7% 9.7 8.2 6.7 40.0 27.8 22.3Web.com Group, Inc. 24.22 81.7% (16.1% ) 1,249 1,725 555 2.0% 27.5% 41.3% 3.2 3.1 3.0 16.5 11.3 10.3Zendesk, Inc. 22.21 78.8% 27.8% 1,912 1,609 194 52.7% (6.2% ) N/A 11.2 8.3 6.1 N/A N/A N/A

Mean (2.3%) $5,379 $5,207 $821 18.7% 6.7% 139.1% 5.1 x 4.3 x 3.6 x 27.8 x 23.0 x 23.1 xMedian (4.6%) 1,015 896 223 16.7% 4.7% 83.5% 3.3 3.0 3.0 24.5 23.3 22.3



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDABox, Inc. $18.64 75.4% N/A $2,244 $2,003 $290 33.8% (36.6% ) N/A 8.5 x 6.9 x 5.3 x N/A N/A N/ADatawatch Corporation 6.98 43.6% (53.3% ) 80 41 32 (4.0% ) (24.3% ) N/A 1.3 1.3 N/A N/A N/A N/AFair Isaac Corporation 90.78 94.0% 42.5% 2,819 3,390 853 7.5% 27.8% 28.7% 4.2 4.0 3.7 18.6 x 14.3 x 13.6 xGlobant S.A. 30.43 92.2% N/A 1,028 960 247 23.6% 15.0% 29.1% 4.5 3.9 3.2 32.2 25.9 20.7IntraLinks Holdings, Inc. 11.91 93.0% 34.0% 683 715 272 6.4% 14.2% 220.1% 2.7 2.6 2.4 N/A 18.5 15.8MicroStrategy Inc. 170.08 85.9% 21.0% 1,926 1,535 541 (6.8% ) 25.5% 245.1% 2.7 2.8 2.7 22.0 11.1 10.1Open Text Corporation 40.53 65.6% (14.3% ) 4,953 5,919 1,810 (2.6% ) 30.8% N/A 3.2 3.3 3.1 11.0 10.6 9.3Qlik Technologies, Inc. 34.96 92.0% 54.6% 3,193 2,912 608 9.2% 10.1% N/A 5.1 4.8 4.1 N/A 47.6 37.2ServiceNow, Inc. 74.31 89.0% 19.9% 11,411 11,118 990 45.1% 11.9% N/A 14.7 11.2 8.3 N/A N/A N/ASplunk, Inc. 69.62 93.0% 25.8% 8,752 7,887 615 36.5% 6.2% N/A N/A 12.8 9.8 N/A N/A N/ATableau Software, Inc. 115.30 93.0% 61.6% 8,204 7,488 619 49.9% 9.9% 210.1% N/A 12.1 8.9 N/A N/A N/ATeradata Corporation 37.00 78.7% (8.0% ) 5,482 5,201 2,661 (2.6% ) 25.3% 12.1% 1.9 2.0 1.9 9.6 7.7 7.3Verint Systems Inc. 60.75 91.4% 23.8% 3,727 4,085 1,224 8.5% 24.8% 89.9% 3.6 3.3 3.0 25.0 13.5 12.3Workiva Inc. 13.83 83.7% N/A 556 490 142 25.9% (23.5% ) N/A 4.1 3.5 2.8 N/A N/A N/A



Appendix


PLM & Engineering

SCM & Logistics



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAnsys, Inc. $91.24 98.7% 20.3% $8,191 $7,430 $961 2.6% 51.4% 14.7% 7.9 x 7.7 x 7.2 x 17.2 x 15.1 x 13.8 xAspen Technology, Inc. 45.55 95.6% (1.8% ) 3,889 3,673 457 8.7% 45.0% 25.7% 8.6 8.0 7.3 21.1 17.9 16.1Autodesk, Inc. 50.08 77.0% (11.2% ) 11,400 10,316 2,586 3.0% 15.1% 44.7% 4.0 4.0 4.0 41.5 26.4 27.5Aveva Group plc 28.05 80.7% (18.1% ) 1,817 1,654 338 2.5% 31.0% 15.5% 5.3 4.9 4.6 19.2 15.8 14.6Cadence Design Systems Inc. 19.66 95.9% 12.4% 5,754 5,416 1,704 7.8% 30.7% 58.1% 3.4 3.2 3.0 15.7 10.4 9.4Dassault Systemes SA 72.65 89.3% 13.6% 18,323 17,078 3,136 12.9% 34.0% 53.4% 6.5 5.4 5.0 25.6 16.0 14.4Exa Corporation 11.15 86.5% (1.0% ) 162 125 66 6.9% 3.3% 366.8% 2.0 1.9 1.7 N/A N/A 21.6GSE Systems Inc. 1.55 86.1% (6.6% ) 28 16 N/A N/A N/A N/A 0.4 N/A N/A N/A N/A N/AMentor Graphics Corp. 26.43 96.5% 23.6% 3,073 3,073 1,281 3.0% 25.3% 29.4% 2.4 2.4 2.2 11.2 9.5 8.5Nemetschek AG 32.16 87.3% 35.1% 1,238 1,222 301 13.6% 25.3% 35.0% 4.9 4.1 3.7 23.7 16.0 14.3PDF Solutions Inc. 16.00 70.6% (24.6% ) 503 371 100 (0.6% ) 34.7% 15.2% 3.7 3.7 3.0 12.3 10.8 7.2PTC Inc. 41.02 96.0% 5.7% 4,717 4,980 1,276 (6.0% ) 27.8% 25.1% 3.7 3.9 3.8 18.2 14.1 11.6Synopsys Inc. 50.65 99.3% 30.5% 7,855 7,070 2,254 6.3% 27.8% 56.2% 3.3 3.1 2.9 17.0 11.3 10.6

Mean 6.0% $5,150 $4,802 $1,205 5.1% 29.3% 61.6% 4.3 x 4.4 x 4.0 x 20.3 x 14.8 x 14.1 xMedian 5.7% 3,889 3,673 1,119 4.7% 29.2% 32.2% 3.7 3.9 3.7 18.2 15.1 14.1



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAmber Road, Inc. $7.02 38.8% (56.5% ) $183 $174 $73 12.3% (12.7% ) N/A 2.7 x 2.4 x 2.0 x N/A N/A N/AAmerican Software, Inc. 9.50 90.1% 0.4% 268 206 110 8.5% 18.3% 79.3% 2.0 1.9 1.8 13.6 x 10.2 x 9.4 xCovisint Corporation 3.27 61.0% (32.7% ) 128 78 81 (9.4% ) (6.4% ) N/A 0.9 1.0 0.9 N/A N/A 14.1Fleetmatics Group PLC 46.83 95.2% 44.8% 1,798 1,649 282 21.9% 30.4% 47.5% 6.7 5.8 4.9 26.0 19.2 15.2Kinaxis Inc. 22.31 86.5% 78.3% 532 452 87 23.5% 25.0% 62.8% 6.1 5.2 4.2 31.2 20.9 17.2Manhattan Associates, Inc. 59.65 96.8% 73.3% 4,401 4,294 547 11.1% 30.4% 24.7% 8.4 7.9 7.3 30.5 25.8 23.1MiX Telematics Limited 0.31 80.0% (24.3% ) 248 172 123 3.7% 20.9% 31.6% 1.5 1.4 1.3 8.4 6.7 5.9SciQuest, Inc. 14.81 77.5% (16.3% ) 409 281 108 6.3% 19.3% 305.9% 2.7 2.6 2.3 N/A 13.5 11.3SPS Commerce, Inc. 65.80 90.3% 4.1% 1,088 954 157 23.0% 13.8% 64.1% 7.0 6.1 5.1 N/A 43.9 33.9Telenav, Inc. 8.05 81.9% 41.5% 324 193 182 26.5% (14.1% ) N/A 1.3 1.1 0.9 N/A N/A N/AThe Descartes Systems Group Inc 16.07 97.4% 12.1% 1,213 1,088 185 8.1% 31.8% 16.5% 6.2 5.9 5.3 20.8 18.5 16.2

Mean 11.3% $963 $867 $176 12.3% 14.2% 79.0% 4.1 x 3.7 x 3.3 x 21.7 x 19.8 x 16.3 xMedian 4.1% 409 281 123 11.1% 19.3% 55.1% 2.7 2.6 2.3 23.4 18.9 15.2


Appendix


Financial IT

Healthcare IT



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAACI Worldwide, Inc. $24.57 95.2% 32.0% $2,869 $3,661 $1,046 3.0% 26.9% 34.7% 3.6 x 3.5 x 3.3 x 17.4 x 13.0 x 12.0 xAdvent Software, Inc. 44.21 99.7% 36.9% 2,329 2,507 422 6.3% 33.2% 36.3% 6.2 5.9 5.6 23.7 17.9 15.7Bottomline Technologies (de), In 27.81 90.2% (7.1% ) 1,078 1,095 348 7.6% 20.4% 74.3% 3.3 3.1 2.8 24.9 15.4 13.1Ebix Inc. 32.61 85.7% 131.2% 1,141 1,250 256 19.3% 36.7% 18.6% 5.5 4.9 4.6 15.2 13.3 12.1Ellie Mae, Inc. 69.79 97.6% 124.2% 2,052 1,980 227 40.3% 22.5% 61.8% 10.8 8.7 7.1 N/A 38.9 27.9Envestnet, Inc. 40.43 69.5% (17.4% ) 1,427 1,364 419 20.2% 18.1% 94.1% 3.7 3.3 2.7 32.0 18.0 13.1Fidessa group plc 35.78 89.8% (2.1% ) 1,360 1,239 462 7.7% 23.2% 37.8% 2.9 2.7 2.5 15.9 11.5 10.7Guidewire Software, Inc. 52.93 94.9% 30.2% 3,734 3,184 390 5.5% 16.1% 96.0% 8.5 8.2 7.3 N/A N/A 41.6Liquid Holdings Group, Inc. 0.21 9.7% (88.8% ) 13 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/AQ2 Holdings, Inc. 28.25 98.0% 98.1% 1,051 931 106 34.1% (8.7% ) N/A 10.8 8.8 6.8 N/A N/A N/ASapiens International Corporatio 10.38 98.9% 31.8% 497 443 176 12.0% 13.7% 29.1% 2.7 2.5 2.2 21.5 18.4 14.9SS&C Technologies Holdings, In 62.50 95.9% 42.3% 6,320 6,827 855 11.3% 41.5% 18.9% 8.7 8.0 7.5 23.1 19.2 17.5Yodlee, Inc. 14.44 80.4% N/A 428 360 110 23.5% 8.7% N/A 3.8 3.3 2.7 N/A 37.6 23.1




6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAccretive Health, Inc. $5.50 58.5% (29.5% ) $539 $394 $231 10.1% 12.7% N/A 1.9 x 1.7 x 1.6 x N/A 13.4 x 10.6 xAllscripts Healthcare Solutions, Inc. 13.68 79.7% (14.8% ) 2,576 3,060 1,401 1.7% 16.8% 313.9% 2.2 2.2 2.1 48.1 x 13.0 11.2athenahealth, Inc. 114.58 74.8% (8.4% ) 4,417 4,623 918 22.0% 18.1% 169.8% 5.8 5.0 4.2 N/A 27.8 23.3Benefitfocus, Inc. 43.85 91.8% (5.1% ) 1,254 1,191 175 27.0% (22.2% ) N/A 8.0 6.8 5.5 N/A N/A N/ACastlight Health, Inc. 8.14 49.3% (46.4% ) 763 578 76 66.8% (90.8% ) N/A 10.9 7.6 4.9 N/A N/A N/ACatamaran Corporation 61.18 99.9% 38.5% 12,726 13,293 24,525 13.6% 3.8% 11.0% 0.6 0.5 0.5 14.8 14.2 12.6Cegedim SA 42.17 97.0% 20.0% 589 1,176 574 (3.9% ) 18.9% 3.2% 2.2 2.0 2.0 12.8 10.8 10.1Cerner Corporation 69.06 91.2% 33.9% 23,762 23,704 4,728 42.7% 31.7% 55.9% 6.7 5.0 4.4 23.7 15.8 13.4CompuGroup Medical AG 34.89 96.0% 23.0% 1,735 2,096 613 (3.5% ) 22.0% 62.5% 3.6 3.4 3.1 26.0 15.5 13.3Computer Programs & Systems Inc. 53.42 80.1% (12.4% ) 605 564 197 (3.7% ) 24.5% (9.1% ) 2.8 2.9 2.7 11.5 11.6 10.2Connecture, Inc. 10.56 73.4% N/A 229 261 102 20.7% 9.7% N/A 2.9 2.6 2.1 N/A 26.3 14.3Evolent Health, Inc. 19.50 98.2% N/A 1,150 1,222 157 56.0% (26.3% ) N/A 10.4 7.8 5.8 N/A N/A N/AHealthEquity, Inc. 32.05 94.1% N/A 1,818 1,703 123 40.5% 30.5% 65.4% N/A 13.8 10.6 N/A 45.2 32.6Healthstream Inc. 30.42 93.9% 25.2% 948 911 204 19.6% 14.2% 3.2% 5.1 4.5 3.9 29.4 31.5 23.4HMS Holdings Corp. 17.17 72.5% (15.9% ) 1,520 1,584 467 5.4% 25.7% 36.6% 3.5 3.4 2.9 18.0 13.2 10.3iCAD, Inc. 3.24 27.9% (49.5% ) 51 33 57 29.7% 17.4% 105.1% 0.7 0.6 0.5 4.9 3.3 2.1Imprivata, Inc. 16.36 96.3% (0.1% ) 394 320 125 29.1% (7.5% ) N/A 3.1 2.6 2.0 N/A N/A N/AIMS Health Holdings, Inc. 30.65 95.2% 19.4% 10,034 13,357 2,916 10.4% 31.3% 52.0% 5.1 4.6 4.2 21.3 14.6 13.1Inovalon Holdings, Inc. 27.90 82.7% N/A 4,120 3,622 438 21.0% 37.0% 24.2% 9.8 8.3 6.8 27.5 22.4 18.0MedAssets, Inc. 22.06 86.3% (3.4% ) 1,332 2,189 760 5.5% 30.5% 7.5% 3.0 2.9 2.7 10.2 9.5 9.0Medidata Solutions, Inc. 54.32 92.1% 26.9% 3,003 2,949 403 20.2% 23.3% 158.9% 8.4 7.3 6.1 N/A 31.4 24.8Merge Healthcare Incorporated 4.80 77.5% 111.5% 464 719 249 17.3% 20.9% 44.9% 3.3 2.9 2.6 19.9 13.8 11.7Omnicell, Inc. 37.71 96.4% 31.3% 1,367 1,227 502 13.9% 18.0% 35.7% 2.7 2.4 2.2 18.0 13.6 11.4OSI Systems, Inc. 70.79 92.3% 6.1% 1,402 1,371 975 3.7% 19.8% 20.9% 1.4 1.4 N/A 8.5 7.1 N/APremier, Inc. 38.46 96.6% 32.6% 1,449 1,121 1,057 12.5% 38.8% 29.9% 1.1 1.1 1.0 3.5 2.7 2.5Press Ganey Holdings, Inc. 28.67 96.8% N/A 1,497 1,901 314 11.6% 36.3% 27.0% 6.5 6.0 5.6 20.3 16.7 14.8Quality Systems Inc. 16.57 88.4% 8.0% 999 869 518 8.6% 14.7% 77.0% 1.8 1.7 1.6 17.1 11.4 9.9Sectra Aktiebolag (publ) 12.88 76.4% (15.5% ) 483 452 124 3.8% 19.4% 3.1% 3.8 3.6 3.3 21.1 18.8 15.2The Advisory Board Company 54.67 96.8% 5.4% 2,320 2,813 784 34.8% 22.2% 249.4% 4.8 3.6 3.1 N/A 16.1 13.9Veeva Systems Inc. 28.03 83.3% 10.1% 3,693 3,264 397 26.7% 29.6% 60.7% 9.7 8.2 6.7 40.0 27.8 22.3

Mean 7.6% $2,908 $3,086 $1,470 18.8% 14.7% 67.0% 4.5 x 4.2 x 3.6 x 19.8 x 17.2 x 14.2 xMedian 6.1% 1,385 1,299 420 15.6% 19.6% 40.7% 3.5 3.4 3.1 18.9 14.4 13.1


Appendix


Other Vertical Solutions

Infrastructure Software – Operating Statistics & Valuation Multiples

Application & Data



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDA2U, Inc. $32.19 97.5% 91.5% $1,331 $1,248 $147 33.3% (6.5% ) N/A 10.5 x 8.5 x 6.6 x N/A N/A N/AAmdocs Limited 54.59 95.8% 19.4% 8,441 7,148 3,664 1.6% 20.6% 10.4% 2.0 2.0 1.9 10.2 x 9.5 x 9.0 xAppFolio, Inc. 14.10 94.8% N/A 456 453 N/A N/A N/A N/A 8.4 N/A N/A N/A N/A N/ABroadSoft, Inc. 34.57 89.0% 31.0% 1,004 935 265 22.1% 23.3% 226.7% 4.1 3.5 3.0 32.1 15.1 12.1Comverse, Inc. 20.08 73.9% (24.7% ) 440 306 187 (60.9% ) N/A N/A 0.7 1.6 1.5 18.5 N/A N/AConstellation Software Inc. 397.41 91.8% 57.9% 8,422 8,568 1,834 9.8% 24.2% 81.4% 5.0 4.7 4.0 31.4 19.3 16.5CSG Systems International Inc. 31.66 96.5% 24.1% 1,037 1,152 761 1.3% 21.6% 39.1% 1.5 1.5 1.4 9.4 7.0 6.6Epiq Systems, Inc. 16.88 84.6% 23.7% 629 901 533 20.0% 20.3% 106.1% 2.1 1.7 1.6 16.1 8.3 7.3Evolving Systems Inc. 8.96 78.7% 9.7% 105 94 30 2.5% 30.5% 2.8% 3.1 3.1 2.7 10.1 10.1 7.6Mobileye N.V. 53.17 88.2% N/A 11,519 11,095 220 52.8% 49.8% N/A N/A N/A N/A N/A N/A N/AModel N, Inc. 11.91 93.8% 7.8% 313 219 96 17.2% (3.1% ) N/A 2.6 2.3 N/A N/A N/A N/ANetSol Technologies, Inc. 5.15 79.2% 32.7% 53 59 56 35.3% N/A N/A 1.3 1.0 N/A N/A N/A N/ANICE Systems Ltd. 63.60 91.4% 57.6% 3,808 3,499 1,000 (1.1% ) 24.5% 29.6% 3.4 3.5 3.2 17.5 14.3 12.7OPOWER, Inc. 11.51 59.5% (38.9% ) 587 460 147 14.5% (13.1% ) N/A 3.4 3.1 2.6 N/A N/A N/APROS Holdings, Inc. 21.11 69.1% (20.2% ) 623 581 180 (3.1% ) (3.3% ) N/A 3.1 3.2 3.3 N/A N/A N/ARealPage, Inc. 19.07 82.5% (15.2% ) 1,517 1,505 461 14.1% 17.4% 174.3% 3.6 3.3 3.0 N/A 18.8 15.4Redknee Solutions Inc. 3.80 85.4% (26.3% ) 414 356 224 (14.0% ) 18.9% 236.7% 1.5 1.6 1.5 22.0 8.4 6.4RPX Corporation 16.90 93.1% (4.8% ) 917 542 293 13.0% 77.3% 22.3% 1.9 1.9 1.7 2.7 2.4 2.3Silver Spring Networks, Inc. 12.41 81.6% (6.9% ) 617 506 283 47.8% 2.6% N/A 1.7 1.8 1.6 N/A N/A 17.8Solera Holdings Inc. 44.56 64.0% (32.7% ) 2,991 5,304 1,156 5.8% 40.0% 11.5% 4.8 4.6 4.2 12.9 11.5 10.5Synchronoss Technologies, Inc. 45.73 84.6% 30.8% 1,979 2,016 573 25.2% 33.5% 57.5% 4.1 3.5 3.0 15.1 10.5 8.7Tangoe, Inc. 12.58 82.4% (16.5% ) 491 443 246 15.6% 15.1% 126.5% 2.1 1.8 1.6 26.6 11.9 9.5TeleCommunication Systems Inc. 3.31 84.0% 0.6% 201 284 390 8.5% 9.9% 27.7% 0.8 0.7 0.7 8.9 7.3 6.2Textura Corporation 27.83 89.1% 17.7% 715 647 90 43.0% 9.2% N/A 9.5 7.2 5.1 N/A N/A 30.4

Mean 9.9% $2,025 $2,013 $558 13.2% 19.7% 82.3% 3.5 x 3.0 x 2.7 x 16.7 x 11.0 x 11.2 xMedian 8.8% 672 614 265 14.1% 20.3% 48.3% 3.1 2.7 2.7 15.6 10.3 9.2



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAdobe Systems Incorporated $81.01 96.0% 12.0% $40,314 $38,805 $4,845 16.8% 34.3% 120.0% 8.9 x 8.0 x 6.5 x 42.2 x 23.3 x 16.4 xApigee Corporation 9.93 48.4% N/A 292 191 76 22.6% (55.9% ) N/A 2.9 2.5 1.9 N/A N/A N/AHortonworks, Inc. 25.32 84.9% N/A 1,093 927 97 111.5% (92.7% ) N/A N/A 9.5 6.5 N/A N/A N/AInteractive Intelligence Group Inc. 44.47 78.5% (20.8% ) 958 898 385 12.7% 3.4% N/A 2.6 2.3 2.1 N/A N/A N/AMagic Software Enterprises Ltd. 6.66 85.6% (8.8% ) 295 214 172 4.5% N/A N/A 1.3 1.2 1.1 6.9 N/A N/AMicro Focus International plc 21.40 98.0% 46.5% 4,650 4,905 1,147 N/A 40.5% N/A 11.3 4.3 3.9 30.6 10.6 9.4MobileIron, Inc. 5.91 45.6% (37.9% ) 461 344 145 9.8% (41.0% ) N/A 2.5 2.4 2.0 N/A N/A N/ANuance Communications, Inc. 17.51 92.4% (6.7% ) 5,495 7,100 1,948 1.1% 31.0% 223.0% 3.7 3.6 3.5 33.8 11.8 11.2Pegasystems Inc. 22.89 95.0% 9.0% 1,752 1,527 658 11.5% 16.1% 39.9% 2.5 2.3 2.1 21.1 14.4 12.3Progress Software Corporation 27.50 95.4% 14.4% 1,391 1,328 419 26.0% 30.7% 22.9% 3.8 3.2 3.0 17.3 10.3 9.9Red Hat, Inc. 75.93 93.2% 37.4% 13,931 13,467 1,953 13.1% 26.6% 61.5% 7.3 6.9 6.0 38.5 25.9 22.7SDL plc 6.54 88.1% 12.4% 531 511 433 6.7% 9.9% 45.0% 1.3 1.2 1.1 17.3 11.9 9.9ServiceNow, Inc. 74.31 89.0% 19.9% 11,411 11,118 990 45.1% 11.9% N/A 14.7 11.2 8.3 N/A N/A N/ASoftware AG 27.38 89.7% (22.7% ) 2,163 2,159 974 (6.2% ) 27.9% 3.0% 2.4 2.2 2.2 9.1 8.0 7.6Wix.com Ltd. 23.62 91.5% 19.1% 913 828 203 43.1% 4.2% N/A 5.3 4.1 3.1 N/A N/A 27.3



Appendix


Network & Systems

Storage



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAA10 Networks, Inc. $6.44 46.8% (51.6% ) $397 $311 $191 6.6% (9.6% ) N/A 1.8 x 1.6 x 1.4 x N/A N/A N/AAerohive Networks, Inc. 6.98 69.3% (15.1% ) 326 253 148 8.2% (17.5% ) N/A 1.9 1.7 1.3 N/A N/A N/AAkamai Technologies, Inc. 69.82 89.0% 14.3% 12,467 12,363 2,246 14.4% 40.9% 34.3% 6.1 5.5 4.7 17.8 x 13.5 x 11.5 xArista Networks, Inc. 81.74 86.2% 31.0% 5,438 4,997 800 37.0% 26.6% 57.1% 7.7 6.2 5.0 33.3 23.5 19.2Attunity, Ltd. 13.07 92.0% 68.2% 210 199 53 47.3% N/A N/A 5.1 3.8 2.8 N/A N/A N/ACA, Inc. 29.29 87.6% 5.3% 12,973 11,570 4,019 (9.2% ) 39.2% 14.6% 2.7 2.9 2.9 8.4 7.3 6.4Citrix Systems, Inc. 70.16 96.0% 12.2% 11,246 11,658 3,230 2.8% 31.7% 51.7% 3.7 3.6 3.4 17.3 11.4 11.7F5 Networks, Inc. 120.35 88.4% 8.0% 8,657 7,991 1,966 9.9% 36.4% 28.4% 4.3 4.1 3.7 13.8 11.2 N/AGigamon Inc. 32.99 94.8% 72.4% 1,095 928 211 34.0% 18.7% N/A 5.4 4.4 3.8 N/A 23.5 18.4Infoblox Inc. 26.21 93.5% 99.3% 1,509 1,190 328 22.8% 11.8% N/A 4.2 3.6 3.0 N/A 30.7 22.5j2 Global, Inc. 67.94 93.7% 36.2% 3,275 3,393 702 17.1% 42.5% 19.8% 5.4 4.8 4.2 13.2 11.4 9.9LogMeIn, Inc. 64.49 92.1% 38.3% 1,588 1,356 264 18.9% 22.4% 185.5% 5.8 5.1 4.4 N/A 23.0 19.7NetScout Systems, Inc. 36.67 76.2% (17.3% ) 1,495 1,288 477 6.9% 31.3% 31.2% 2.8 2.7 2.3 10.3 8.6 7.0New Relic, Inc. 35.19 91.0% N/A 1,662 1,461 148 52.7% (25.3% ) N/A 13.2 9.9 7.3 N/A N/A N/ARingCentral, Inc. 18.49 94.3% 22.2% 1,277 1,164 286 30.1% 0.3% N/A 4.9 4.1 3.3 N/A N/A N/ASolarWinds, Inc. 46.13 86.3% 19.3% 3,524 3,284 520 21.2% 44.6% 69.8% 7.3 6.3 5.2 23.5 14.2 12.3Splunk, Inc. 69.62 93.0% 25.8% 8,752 7,887 615 36.5% 6.2% N/A N/A 12.8 9.8 N/A N/A N/ASupport.com, Inc. 1.41 49.6% (48.0% ) 77 4 88 5.5% N/A N/A 0.0 0.0 0.0 N/A N/A N/AVaronis Systems, Inc. 22.09 57.4% (23.9% ) 549 436 124 22.6% (15.6% ) N/A 4.1 3.5 2.8 N/A N/A N/AVMware, Inc. 85.74 82.6% (11.4% ) 36,342 30,620 6,653 10.2% 34.1% 48.4% 4.9 4.6 4.1 19.7 13.5 11.9




6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDACarbonite, Inc. $11.81 76.5% (1.3% ) $323 $258 $138 12.3% 18.6% 464.0% 2.0 x 1.9 x 1.7 x N/A 10.1 x 8.8 xCommVault Systems, Inc. 42.41 75.5% (13.7% ) 1,918 1,531 619 0.9% 16.2% 42.9% 2.5 2.5 2.2 29.9 x 15.2 10.9Falconstor Software Inc. 1.59 92.0% (6.5% ) 65 52 N/A N/A N/A N/A 1.0 N/A N/A N/A N/A N/ANetApp, Inc. 31.56 72.1% (12.1% ) 9,625 5,786 5,751 (7.7% ) 18.1% 4.3% 0.9 1.0 1.0 6.6 5.6 4.6Nimble Storage, Inc. 28.06 87.3% (8.7% ) 2,185 1,984 334 46.9% (9.2% ) N/A 7.9 5.9 4.3 N/A N/A N/ASymantec Corporation 23.25 85.1% 4.0% 15,827 14,032 6,214 (6.1% ) 32.9% 6.6% 2.2 2.3 2.2 7.6 6.9 6.3Violin Memory, Inc. 2.45 44.1% (44.7% ) 236 231 76 (4.4% ) (114.6% ) N/A 3.2 3.1 2.4 N/A N/A N/A

Mean (11.8%) $4,311 $3,411 $2,189 7.0% (6.3%) 129.5% 2.8 x 2.8 x 2.3 x 14.7 x 9.4 x 7.6 xMedian (8.7%) 1,918 1,531 477 (1.7%) 17.2% 24.8% 2.2 2.4 2.2 7.6 8.5 7.5


Appendix


Security Software – Operating Statistics & Valuation Multiples

Content Providers

Network Security & IAM



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAhnLab, Inc. $46.05 88.5% 10.9% $399 $337 N/A N/A N/A N/A 2.8 x N/A N/A 23.0 x N/A N/AAVG Technologies N.V. 27.21 93.5% 35.2% 1,408 1,514 $433 15.7% 33.7% 20.5% 3.9 3.5 x 3.0 x 12.7 10.4 x 9.1 xCyberArk Software, Ltd. 62.82 82.3% N/A 1,989 1,797 141 36.7% 16.7% 11.0% N/A 12.8 9.9 N/A N/A N/AF-Secure Oyj 3.50 95.4% 5.4% 545 422 165 (11.5% ) 21.1% (3.0% ) 2.5 2.6 2.4 12.9 12.1 10.6Proofpoint, Inc. 63.67 93.8% 70.0% 2,510 2,481 252 29.1% 1.1% N/A 11.8 9.8 7.8 N/A N/A N/ASymantec Corporation 23.25 85.1% 4.0% 15,827 14,032 6,214 (6.1% ) 32.9% 6.6% 2.2 2.3 2.2 7.6 6.9 6.3Trend Micro Inc. 34.26 92.0% 7.5% 4,652 3,697 1,008 4.8% 34.9% 2.2% 3.8 3.7 3.5 11.0 10.5 10.2Wave Systems Corp. 0.58 35.1% (58.7% ) 35 32 N/A N/A N/A N/A 2.2 N/A N/A N/A N/A N/AZix Corporation 5.17 94.5% 51.2% 297 272 55 9.2% 25.5% 67.5% 5.3 5.0 4.4 31.4 19.4 15.1




6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDAAbsolute Software Corporation $7.21 84.2% 15.2% $322 $257 $100 6.4% 22.8% 9.3% 2.7 x 2.6 x 2.3 x 13.2 x 11.3 x 11.3 xBarracuda Networks, Inc. 39.62 84.7% 27.7% 2,108 1,921 313 17.9% 28.9% N/A 6.9 6.1 5.2 N/A 21.2 17.7BIO-key International, Inc. 0.22 43.0% (56.1% ) 14 14 N/A N/A N/A N/A 4.2 N/A N/A N/A N/A N/ACheckpoint Systems Inc. 10.18 70.9% (23.7% ) 428 401 607 (8.4% ) 8.9% (26.2% ) 0.6 0.7 0.6 5.6 7.4 6.2CYREN Ltd. 1.89 52.9% (34.4% ) 66 62 33 3.4% N/A N/A 2.0 1.9 1.5 N/A N/A N/AFireEye, Inc. 48.91 88.4% 20.6% 7,646 7,248 631 48.3% (34.0% ) N/A N/A 11.5 8.4 N/A N/A N/AFortinet Inc. 41.33 93.7% 64.5% 7,008 6,204 943 22.5% 16.8% 93.0% 7.6 6.6 5.6 N/A 39.3 31.1Gemalto NV 88.98 93.6% (13.7% ) 7,790 7,246 3,492 17.0% 18.8% 36.2% 2.4 2.1 1.9 15.0 11.0 9.7Guidance Software, Inc. 8.47 83.9% (7.1% ) 254 229 110 0.9% 1.9% N/A 2.1 2.1 2.0 N/A N/A 43.4Imperva Inc. 67.70 98.1% 158.6% 2,071 1,829 206 25.8% (7.1% ) N/A 10.3 8.9 7.3 N/A N/A N/AImprivata, Inc. 16.36 96.3% (0.1% ) 394 320 125 29.1% (7.5% ) N/A 3.1 2.6 2.0 N/A N/A N/AIntrusion Inc. 1.87 62.3% 1.6% 24 27 N/A N/A N/A N/A 3.6 N/A N/A N/A N/A N/ALifeLock, Inc. 16.40 85.6% 17.5% 1,548 1,254 587 23.3% 13.3% 109.4% 2.5 2.1 1.8 38.8 x 16.0 11.5NQ Mobile Inc. 5.28 49.4% (14.0% ) 472 457 450 35.3% 7.5% N/A 1.3 1.0 0.8 N/A 13.5 5.6Palo Alto Networks, Inc. 174.70 94.4% 108.3% 14,615 14,367 1,053 42.5% 19.8% N/A N/A 13.6 10.4 N/A N/A 40.5Qihoo 360 Technology Co. Ltd. 67.69 64.6% (26.5% ) 8,728 8,845 1,970 41.7% 30.2% 72.6% 5.9 4.5 3.3 22.7 14.9 10.8Qualys, Inc. 40.35 72.7% 57.2% 1,370 1,227 166 24.1% 27.1% 112.3% 8.7 7.4 6.0 46.0 27.3 21.5VASCO Data Security International Inc. 30.19 86.3% 160.3% 1,194 1,044 239 18.5% 23.1% 40.4% 4.6 4.4 4.0 20.7 18.9 16.0VeriSign, Inc. 61.72 90.4% 26.4% 7,186 7,200 1,054 4.3% 66.8% 12.1% 7.1 6.8 6.5 11.4 10.2 9.5



Appendix


SaaS – Operating Statistics & Valuation Multiples



6/30/2015% of

Price per 52-Week LTM Market Enterprise 2015E 2015E 2015E EV/LTM EV/2015E EV/2016E EV/LTM EV/2015E EV/2016ECompany Name Share High Change Cap Value 2015E Growth Margin Growth Revenue Revenue Revenue EBITDA EBITDA EBITDA2U, Inc. $32.19 97.5% 91.5% $1,331 $1,248 $147 33.3% (6.5% ) N/A 10.5 x 8.5 x 6.6 x N/A N/A N/AAmber Road, Inc. 7.02 38.8% (56.5% ) 183 174 73 12.3% (12.7% ) N/A 2.7 2.4 2.0 N/A N/A N/AAppFolio, Inc. 14.10 94.8% N/A 456 453 N/A N/A N/A N/A 8.4 N/A N/A N/A N/A N/Aathenahealth, Inc. 114.58 74.8% (8.4% ) 4,417 4,623 918 22.0% 18.1% 169.8% 5.8 5.0 4.2 N/A 27.8 x 23.3 xBazaarvoice, Inc. 5.89 62.7% (25.3% ) 472 422 201 8.1% (2.0% ) N/A 2.2 2.1 1.9 N/A N/A 47.6Benefitfocus, Inc. 43.85 91.8% (5.1% ) 1,254 1,191 175 27.0% (22.2% ) N/A 8.0 6.8 5.5 N/A N/A N/ABox, Inc. 18.64 75.4% N/A 2,244 2,003 290 33.8% (36.6% ) N/A 8.5 6.9 5.3 N/A N/A N/ACallidus Software Inc. 15.58 90.0% 30.5% 861 771 166 21.7% 13.0% N/A 5.3 4.6 3.9 N/A 35.7 23.6Carbonite, Inc. 11.81 76.5% (1.3% ) 323 258 138 12.3% 18.6% 464.0% 2.0 1.9 1.7 N/A 10.1 8.8Castlight Health, Inc. 8.14 49.3% (46.4% ) 763 578 76 66.8% (90.8% ) N/A 10.9 7.6 4.9 N/A N/A N/AChannelAdvisor Corporation 11.95 44.0% (54.7% ) 299 237 95 12.2% (14.8% ) N/A 2.7 2.5 2.2 N/A N/A N/AConnecture, Inc. 10.56 73.4% N/A 229 261 102 20.7% 9.7% N/A 2.9 2.6 2.1 N/A 26.3 14.3Constant Contact, Inc. 28.76 66.6% (10.4% ) 925 746 375 13.0% 19.7% 98.1% 2.2 2.0 1.7 18.4 x 10.1 8.1Cornerstone OnDemand, Inc. 34.80 74.0% (24.4% ) 1,877 1,884 340 29.2% 1.4% N/A 6.7 5.5 4.4 N/A N/A N/ACovisint Corporation 3.27 61.0% (32.7% ) 128 78 81 (9.4% ) (6.4% ) N/A 0.9 1.0 0.9 N/A N/A 14.1Cvent, Inc. 25.78 86.4% (11.4% ) 1,071 895 182 28.3% 9.0% 220.8% 5.9 4.9 4.0 N/A N/A 31.2Demandware, Inc. 71.08 96.8% 2.5% 2,660 2,471 234 45.6% 4.6% N/A 13.9 10.6 7.9 N/A N/A N/AEbix Inc. 32.61 85.7% 131.2% 1,141 1,250 256 19.3% 36.7% 18.6% 5.5 4.9 4.6 15.2 13.3 12.1Ellie Mae, Inc. 69.79 97.6% 124.2% 2,052 1,980 227 40.3% 22.5% 61.8% 10.8 8.7 7.1 N/A 38.9 27.9Falconstor Software Inc. 1.59 92.0% (6.5% ) 65 52 N/A N/A N/A N/A 1.0 N/A N/A N/A N/A N/AFireEye, Inc. 48.91 88.4% 20.6% 7,646 7,248 631 48.3% (34.0% ) N/A N/A 11.5 8.4 N/A N/A N/AFive9, Inc. 5.23 65.5% (27.4% ) 261 237 122 18.3% (12.7% ) N/A 2.2 1.9 1.7 N/A N/A N/AFleetmatics Group PLC 46.83 95.2% 44.8% 1,798 1,649 282 21.9% 30.4% 47.5% 6.7 5.8 4.9 26.0 19.2 15.2Halogen Software Inc. 8.62 96.4% 13.0% 191 147 67 18.6% (7.8% ) N/A 2.5 2.2 1.8 N/A N/A N/AHubSpot, Inc. 49.58 90.3% N/A 1,640 1,504 167 44.1% (15.0% ) N/A 11.6 9.0 7.0 N/A N/A N/AinContact, Inc. 9.87 82.7% 7.4% 607 569 212 23.2% 4.8% N/A 3.1 2.7 2.3 N/A N/A 37.4Inovalon Holdings, Inc. 27.90 82.7% N/A 4,120 3,622 438 21.0% 37.0% 24.2% 9.8 8.3 6.8 27.5 22.4 18.0IntraLinks Holdings, Inc. 11.91 93.0% 34.0% 683 715 272 6.4% 14.2% 220.1% 2.7 2.6 2.4 N/A 18.5 15.8j2 Global, Inc. 67.94 93.7% 36.2% 3,275 3,393 702 17.1% 42.5% 19.8% 5.4 4.8 4.2 13.2 11.4 9.9Jive Software, Inc. 5.25 60.1% (38.3% ) 393 279 198 10.6% 0.2% N/A 1.5 1.4 1.3 N/A N/A 34.3Kinaxis Inc. 22.31 86.5% 78.3% 532 452 87 23.5% 25.0% 62.8% 6.1 5.2 4.2 31.2 20.9 17.2LifeLock, Inc. 16.40 85.6% 17.5% 1,548 1,254 587 23.3% 13.3% 109.4% 2.5 2.1 1.8 38.8 16.0 11.5LinkedIn Corporation 206.63 74.8% 20.5% 26,028 23,596 2,908 31.1% 21.1% 164.3% 9.9 8.1 6.2 N/A 38.4 24.5Liquid Holdings Group, Inc. 0.21 9.7% (88.8% ) 13 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ALivePerson Inc. 9.81 66.7% (3.3% ) 560 519 245 16.7% 7.9% 83.5% 2.3 2.1 1.9 46.9 26.9 18.9LogMeIn, Inc. 64.49 92.1% 38.3% 1,588 1,356 264 18.9% 22.4% 185.5% 5.8 5.1 4.4 N/A 23.0 19.7Marin Software Incorporated 6.74 55.5% (42.7% ) 244 194 115 15.5% (10.7% ) N/A 1.9 1.7 1.4 N/A N/A N/AMarketo, Inc. 28.06 78.8% (3.5% ) 1,185 1,088 209 39.4% (12.6% ) N/A 6.6 5.2 3.9 N/A N/A N/AMedidata Solutions, Inc. 54.32 92.1% 26.9% 3,003 2,949 403 20.2% 23.3% 158.9% 8.4 7.3 6.1 N/A 31.4 24.8MINDBODY, Inc. 13.83 85.1% N/A 541 707 N/A N/A N/A N/A 9.2 N/A N/A N/A N/A N/AMiX Telematics Limited 0.31 80.0% (24.3% ) 248 172 123 3.7% 20.9% 31.6% 1.5 1.4 1.3 8.4 6.7 5.9Model N, Inc. 11.91 93.8% 7.8% 313 219 96 17.2% (3.1% ) N/A 2.6 2.3 N/A N/A N/A N/ANetSuite Inc. 91.75 80.6% 5.6% 7,213 7,031 733 31.8% 7.0% N/A 11.8 9.6 7.4 N/A N/A N/ANew Relic, Inc. 35.19 91.0% N/A 1,662 1,461 148 52.7% (25.3% ) N/A 13.2 9.9 7.3 N/A N/A N/ANimble Storage, Inc. 28.06 87.3% (8.7% ) 2,185 1,984 334 46.9% (9.2% ) N/A 7.9 5.9 4.3 N/A N/A N/AOPOWER, Inc. 11.51 59.5% (38.9% ) 587 460 147 14.5% (13.1% ) N/A 3.4 3.1 2.6 N/A N/A N/APaycom Software, Inc. 34.15 85.9% 134.1% 1,993 1,984 206 36.5% 17.8% 66.5% 11.7 9.6 7.5 N/A N/A 40.0Paylocity Holding Corporation 35.85 94.4% 65.7% 1,815 1,722 170 32.7% 4.8% N/A 12.2 10.1 8.0 N/A N/A N/AProofpoint, Inc. 63.67 93.8% 70.0% 2,510 2,481 252 29.1% 1.1% N/A 11.8 9.8 7.8 N/A N/A N/AQ2 Holdings, Inc. 28.25 98.0% 98.1% 1,051 931 106 34.1% (8.7% ) N/A 10.8 8.8 6.8 N/A N/A N/AQualys, Inc. 40.35 72.7% 57.2% 1,370 1,227 166 24.1% 27.1% 112.3% 8.7 7.4 6.0 46.0 27.3 21.5RealPage, Inc. 19.07 82.5% (15.2% ) 1,517 1,505 461 14.1% 17.4% 174.3% 3.6 3.3 3.0 N/A 18.8 15.4Red Hat, Inc. 75.93 93.2% 37.4% 13,931 13,467 1,953 13.1% 26.6% 61.5% 7.3 6.9 6.0 38.5 25.9 22.7RingCentral, Inc. 18.49 94.3% 22.2% 1,277 1,164 286 30.1% 0.3% N/A 4.9 4.1 3.3 N/A N/A N/Asalesforce.com, inc. 69.63 88.7% 19.9% 45,646 46,666 6,548 21.9% 19.3% 651.6% 8.2 7.1 5.9 N/A 36.8 31.1SciQuest, Inc. 14.81 77.5% (16.3% ) 409 281 108 6.3% 19.3% 305.9% 2.7 2.6 2.3 N/A 13.5 11.3ServiceNow, Inc. 74.31 89.0% 19.9% 11,411 11,118 990 45.1% 11.9% N/A 14.7 11.2 8.3 N/A N/A N/AShopify Inc. 33.95 80.6% N/A 2,566 2,594 160 52.2% (5.1% ) N/A N/A N/A 12.2 N/A N/A N/AServiceSource International, Inc. 5.47 92.6% (5.7% ) 466 377 245 (9.9% ) (7.8% ) N/A 1.4 1.5 1.5 N/A N/A N/ASPS Commerce, Inc. 65.80 90.3% 4.1% 1,088 954 157 23.0% 13.8% 64.1% 7.0 6.1 5.1 N/A 43.9 33.9Synchronoss Technologies, Inc. 45.73 84.6% 30.8% 1,979 2,016 573 25.2% 33.5% 57.5% 4.1 3.5 3.0 15.1 10.5 8.7Tangoe, Inc. 12.58 82.4% (16.5% ) 491 443 246 15.6% 15.1% 126.5% 2.1 1.8 1.6 26.6 11.9 9.5Textura Corporation 27.83 89.1% 17.7% 715 647 90 43.0% 9.2% N/A 9.5 7.2 5.1 N/A N/A 30.4The Ultimate Software Group, Inc. 164.34 89.7% 18.9% 4,697 4,584 616 21.8% 24.1% 103.9% 8.7 7.4 6.2 N/A 30.8 24.4TubeMogul, Inc. 14.29 60.0% N/A 483 447 154 34.7% (6.8% ) N/A 3.6 2.9 2.3 N/A N/A N/AUpland Software, Inc. 9.22 75.6% N/A 141 138 71 10.4% 5.0% N/A 2.1 1.9 1.8 N/A 38.7 21.1VASCO Data Security International Inc. 30.19 86.3% 160.3% 1,194 1,044 239 18.5% 23.1% 40.4% 4.6 4.4 4.0 20.7 18.9 16.0Veeva Systems Inc. 28.03 83.3% 10.1% 3,693 3,264 397 26.7% 29.6% 60.7% 9.7 8.2 6.7 40.0 27.8 22.3Wave Systems Corp. 0.58 35.1% (58.7% ) 35 32 N/A N/A N/A N/A 2.2 N/A N/A N/A N/A N/AWorkday, Inc. 76.39 78.4% (15.0% ) 14,590 13,167 1,145 45.3% 5.2% N/A 15.0 11.5 8.3 N/A N/A N/AWorkiva Inc. 13.83 83.7% N/A 556 490 142 25.9% (23.5% ) N/A 4.1 3.5 2.8 N/A N/A N/AXero Limited. 12.23 67.1% (46.2% ) 1,653 1,471 126 45.4% (33.7% ) N/A N/A 11.6 7.4 N/A N/A N/AXactly Corporation 8.59 85.1% N/A 238 249 N/A N/A N/A N/A 3.9 N/A N/A N/A N/A N/AYodlee, Inc. 14.44 80.4% N/A 428 360 110 23.5% 8.7% N/A 3.8 3.3 2.7 N/A 37.6 23.1Zendesk, Inc. 22.21 78.8% 27.8% 1,912 1,609 194 52.7% (6.2% ) N/A 11.2 8.3 6.1 N/A N/A N/AZix Corporation 5.17 94.5% 51.2% 297 272 55 9.2% 25.5% 67.5% 5.3 5.0 4.4 31.4 19.4 15.1



Global Investment Banking Contact List


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Appendix – Disclaimers and Other Disclosures


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