tech-enabled services monthly september...
TRANSCRIPT
Tech-Enabled Services Headline Transactions
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
LTM Gross & EBITDA Margins
10.3x 11.2x
8.2x 7.8x
15.0x 13.5x
6.4x
0.0
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
Info Services VAR
TEV
/ EBI
TDA
25.9%
33.5%
55.8%
19.0%
38.0%
60.3%
8.7% 9.6%
18.1%
32.3%
3.8%
22.9% 24.5%
3.3% 0%
10%
20%
30%
40%
50%
60%
70%
0%
10%
20%
30%
40%
50%
60%
70%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
LTM EB
ITDA
MarginLT
M G
ross
Mar
gin
Note: EBITDA Margins in red
Target Acquirer Acquisition Synopsis
IT Services
Select Groups
•
•
IMC, Inc. provides enterprise content management, clinical research informatics, technology consulting, business intelligence, information assurance and vendor risk managementCalibre Systems, an employee-owned consulting and IT services company, announced it acquired select groups of IMC to strengthen its presence in federal and commercial markets
IT Services
•
•
•
SunGard Data Systems offers technology services that focus on application implementation and integration, custom software development and application managementFidelity National Information Services agreed to buy SunGard Data Systems in a deal valued at $9.1 billion to enhance its capital markets and wealth management capabilities
Managed Services
•
•
Veritas Technologies Corporation offers data backup and recovery, archiving, eDiscovery, storage management and information availability servicesThe Carlyle Group announced it has agreed to acquire Veritas for $8 billion; Veritas will leverage the partnership to enhance its platform and invest more heavily in data center capabilities
IT Services
•
•
FusionX LLC provides cyber attack simulation, threat modeling, cyber investigations and security risk advisory servicesAccenture acquired FusionX to strengthen its Security practice and complement its industrialized suite of security transformation and operations offerings
Managed Services
•
•
Kelway Limited provides IT services, managed services, professional services, including technical consulting, project and program management, onsite deployment and training servicesCDW announced it acquired Kelway for $608 million to extend its global supply chain services capabilities in Europe and North America as part of a strategic growth initiative
1. Headline Transactions
1.0x
2.3x 2.2x
0.4x
3.2x 3.1x
0.2x
0.0
0.5x
1.0x
1.5x
2.0x
2.5x
3.0x
3.5x
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
TEV
/ Rev
enue
10%
Services Processing Services
(1.3%)
7.9%
1.3%
(3.6%)
6.9% 5.3% 5.8%
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
10%
ITS Offshore ITS HostingServices
IT Staffing TransactionProcessing
InfoServices
VAR
1-Ye
ar R
even
ue G
row
th
Tech-Enabled Services MonthlySeptember 2015
LTM Revenue Growth
Selected TM Capital Tech-Enabled Services Experience TM Capital’s Tech-Enabled Services Contacts
Bradford A. Adams Managing Director
617-259-2203 [email protected]
Jarrad S. Zalkin Managing Director
617-259-2207 [email protected]
Andrew O. Redmond Vice President 617-259-2215
Annc. Date Sector Acquirer Target DescriptionEnterprise
Value Comments08/28/15 VAR ProSource, Inc. Aaron's Business
Solutions Inc.Sells and services office technology products NA ProSource acquired Aaron's Business Solutions as part
of a strategic growth initiative to expand its nationalreach, representing the Company's third acquisition of2015
08/25/15 IT Services Hitachi Systems, Ltd.
Above Security Inc.
Provides IT security services for monitoring andprotecting IT infrastructure
NA Hitachi Systems announced its acquisition of AboveSecurity to strengthen its managed security servicesbusiness and expand its presence in North America
08/17/15 IT Services CSG Limited CodeBlue Limited Provides a suite of IT support services for mid-sized companies and organizations
$9.9 CSG acquired New Zealand-based CodeBlue tostrengthen its IT support capabilities throughoutAustralia and New Zealand; CodeBlue hasapproximately 160 employees across nine branches
08/12/15 Managed Services
Markit Ltd. CoreOne Technologies LLC
Provides tech-enabled financial data creation,management and distribution services andsolutions
$200.0 Markit announced its acquisition of CoreOneTechnologies to strengthen and complement theCompany's equity transaction analytics, ETP datamanagement and other software offerings
08/05/15 IT Services DWS Limited Phoenix IT & T Consulting Pty Ltd.
Provides business consulting and ITprofessional services
$19.1 DWS announced its acquisition of Phoenix IT to expandits workforce and enhance its service offering; thistransaction marks DWS' second acquisition this year
08/04/15 Hosting Services
Endurance International Group Holdings, Inc.
Verio; Site5 Provides Web hosting and Website solutions $34.9 Endurance International acquired web hostingproviders Verio and Site5 to strengthen its subscriberbase, further driving consolidation within the mass-market web hosting landscape
08/03/15 Managed Services
Avanade UK Limited
CloudTalent Limited
Provides IT infrastructure consultancy andservices
NA Avanade announced its acquisition of CloudTalent tostrengthen its MSFT-focused infrastructure and cloudbusiness, representing the Company's secondacquisition this year
3. TES Transactions
Select Tech-Enabled Services Transactions Announced in August 2015
www.tmcapital.com /technology
New York641 Lexington Avenue30th FloorNew York, NY 10022Tel: 212.809.1360
Boston201 Washington Street32nd FloorBoston, MA 02145Tel: 617.259.2200
Atlanta3575 Piedmont Road NESuite 1010Atlanta, GA 30305 Tel: 404.995.6230
TEV / EBITDA Multiples Over Time
10.3x
11.2x
7.8x
8.2x
15.0x
13.5x
6.4x3.0x
5.0x
7.0x
9.0x
11.0x
13.0x
15.0x
17.0x
Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 8/31/2015
TEV
/ EBI
TDA
ITS Offshore ITS Hosting Services IT Staffing Transaction Processing Info. & Data VAR
Notes: USD in millions Source: Capital IQ, Company SEC Filings, industry research and TM Capital estimates