technology ma report1 q4 14

John Hill Senior Managing Director [email protected](813) 383-0205John McDonaldSenior Managing [email protected](813) 383-0206Keith HodgdonManaging [email protected](813) 383-0208Jami GoldVice President [email protected](813) 383-0203Michael MarianiVice [email protected](813) 597-2649Charlie [email protected](813) 383-0207George GaroufalidisSenior [email protected](813) 574-1182Tim KnerrSenior [email protected](813) 514-1063

TechnologyM&A Report

Q4 2014

HYDE PARK CAPITAL

Member FINRA/SIPC

Investment Banking | Mergers & Acquisitions | Capital Raising

Hyde Park Capital Advisors, LLC701 N. Franklin StreetTampa, FL 33602Tel: 813-383-0202www.hydeparkcapital.com

HYDE PARK CAPITALInvestment Banking | Mergers & Acquisitions | Capital Raising

Industry Sector 3 Months 12 months Revenue EBITDAEnterprise Software 10.8% 7.6% 4.1x 13.5xSoftware-as-a-Service (SaaS) 8.6% 5.5% 4.4x 19.3xInfrastructure Software 3.9% 7.1% 3.0x 10.9xInformatics & Data Services 7.9% 3.2% 3.3x 12.3xInternet (3.5%) 0.0% 3.5x 15.3xIT Services 12.4% 10.5% 2.1x 11.4xTechnology Hardware 6.6% 18.3% 0.8x 8.2x

MedianChange in Stock Price Enterprise Value / LTM

90%100%110%120%130%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14S&P Global Information Technology Index Nasdaq S&P 500

($ in millions)

Public Market Performance (LTM)

Select Technology Public Offerings (Q4 2014)

Market Performance by Sector

Source: S&P Capital IQ 2

Capital Markets Overview

As of December 31, 2014 the major market indices including theS&P 500, Nasdaq and S&P Global Information Technology indexexperienced positive performance; led by the S&P GlobalInformation Technology index (up 15%), the Nasdaq (up 14%) andthe S&P 500 (up 12%).The table on the right illustrates select public equity offeringscompleted in Q4 2014. Data storage solutions provider WesternDigital Corp. (NasdaqGS:WDC), raised $522 million in the largestoffering of the quarter.The Software-as-a-Service and Enterprise Software sectors were theindustry’s leaders with respect to valuation during the 4th quarter,trading at revenue multiples of 4.4x and 4.1x, respectively.

Commentary

12.4%

15.4%

14.3%

Offer Date Issuer Industry SectorTransaction

Type Transaction

Value11/06/14 Western Digital Corp. Technology Hardware Secondary $52212/02/14 CDW Corp. Technology Hardware Secondary $49901/14/15 SunEdison Semiconductor Ltd. Technology Hardware Secondary $22811/21/14 Endurance Intl. Group Holdings, Inc. Enterprise Software Secondary $18901/14/15 Paycom Software, Inc. Software-as-a-Service Secondary $12612/11/14 New Relic, Inc. Software-as-a-Service IPO $11511/11/14 TrueCar, Inc. Internet Secondary $10912/11/14 Workiva, Inc. Enterprise Software IPO $10112/11/14 Hortonworks, Inc. Enterprise Software IPO $10012/05/14 GTT Communications, Inc. Infrastructure Software Secondary $45


Deal Size Volume Value Volume Value Volume Value Less than $100M 178 $5.2 211 $7.0 19% 34%$100 - $499M 66 $16.5 90 $20.3 36% 23%$500 - $1,000M 20 $15.2 23 $19.4 15% 28%Total Middle Market 264 $36.9 324 $46.7 23% 27%

% of Total MarketLess than $100M 67% 14% 65% 15%$100 - $499M 25% 45% 28% 43%$500 - $1,000M 8% 41% 7% 42%Total Middle Market 100% 100% 100% 100%

2013 2014 % Change

Middle Market M&A Transactions by Deal Size – Technology

U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE

Annual Middle Market M&A Activity – Technology

3

As detailed in the table on the right, Middle Market M&A activityincreased across all segments of the Technology industry during2014 compared to 2013.Overall U.S. Middle Market Technology deal volume increased 23%during 2014 to 324 closed transactions, up from 264 deals duringthe prior year. Deals valued between $100 - $499 million saw thelargest increase in volume, increasing 36% to 90 transactions.The total value of completed Middle Market M&A transactions inthe Technology sector rose 27% to $46.7 billion. The total value oftransactions less than $100 million increased 34% over 2013,accounting for 15% of the total deal value during 2014.

Commentary

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M

Total Transac

tion Volume

Total Transac

tion Value ($ i

n bi

llion

s)

($ in billions)


Deal Size Volume Value Volume Value Volume Value Less than $100M 57 $1.7 45 $1.6 (21%) (10%)$100 - $499M 29 $6.9 27 $6.1 (7%) (11%)$500 - $1,000M 10 $8.7 6 $5.0 (40%) (42%)Total Middle Market 96 $17.3 78 $12.7 (19%) (27%)

% of Total MarketLess than $100M 60% 10% 57% 12%$100 - $499M 30% 40% 35% 51%$500 - $1,000M 10% 50% 8% 37%Total Middle Market 100% 100% 100% 100%

Q4 2013 Q4 2014 % Change

Quarterly Middle Market M&A Activity – Technology

U.S. Middle Market M&A Activity – Quarterly Trends: VALUEU.S. Middle Market M&A Activity – Quarterly Trends: VOLUME

Middle Market M&A Transactions by Deal Size – Technology

($ in billions)

4

Commentary

The total volume of completed Middle Market Technology dealsdecreased 19% during Q4 2014 to 78 transactions, down from 96during Q4 2013.The total value of completed Middle Market Technologytransactions fell 27% during the 4th quarter of 2014 to $12.7billion, down from $17.3 billion in the prior year period.Although Middle Market Technology M&A activity decreasedcompared with Q4 2013, deal volume and the total value ofcompleted transactions both increased compared with Q3 2014.

Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)

Total Transac

tion Volume

Total Transac

tion Value ($ i

n bi

llion

s)

Less than $100M $100 - $499M $500 - $1,000MLess than $100M $100 - $499M $500 - $1,000M


Recent M&A Activity – Technology

Select Announced M&A Transactions (Q4 2014)

5Source: S&P Capital IQ.

($ in millions)

Announced Date Target Buyer Industry Enterprise

Value ($mm)EV /

RevenueEV /

EBITDA12/29/14 Computech, Inc. NCI Information Systems, Inc. IT Services $55.8 NA NA12/18/14 Datamax-O'Neil Corp. Honeywell Imaging and Mobility, Inc. Technology Hardware $185.0 1.4x NA12/18/14 Xerox Corp. (Information Technology Outsourcing Business) Atos SE IT Services $1,100.0 NA NA12/16/14 DTECH LABS, Inc. Cubic Corp. Technology Hardware $114.5 NA NA12/15/14 Riverbed Technology, Inc. Ontario Teachers' Pension Plan/Thoma Bravo Infrastructure Software $3,468.4 3.2x 18.7x12/11/14 Fotolia, LLC Adobe Systems, Inc. Internet $800.0 NA NA12/11/14 AwesomenessTV, Inc. The Hearst Corp. Internet $325.0 NA NA12/10/14 Rentrak Corp. WPP Luxembourg Gamma Three S.À R.L. SaaS $1,017.2 11.5x NM12/10/14 Industrial Safety Technologies, LLC Scott Health & Safety, Inc. Technology Hardware $329.5 NA NA12/09/14 Tripwire, Inc. Belden, Inc. Enterprise Software $710.0 NA NA12/05/14 Actuate Corp. Open Text Corp. Infrastructure Software $248.5 2.3x NM12/04/14 Solid State Equipment, LLC Veeco Instruments, Inc. Technology Hardware $150.0 NA NA12/03/14 Carbonite, Inc. j2 Global, Inc. Infrastructure Software $333.1 2.8x 37.3x12/01/14 Spansion, Inc. Cypress Semiconductor Corp. Technology Hardware $1,855.5 1.5x 17.3x12/01/14 Freightquote.com, Inc. C.H. Robinson Company, Inc. Internet $365.0 NA NA12/01/14 IPC Systems, Inc. Centerbridge Partners, L.P. Infrastructure Software $1,200.0 NA NA11/24/14 Fifth Gear, LLC Speed Commerce, Inc. Infrastructure Software $74.5 1.5x NA11/19/14 Smarterer, Inc. Pluralsight, LLC Informatics and Data Services $75.0 NA NA11/19/14 Oplink Communications, Inc. Koch Industries, Inc. Technology Hardware $322.1 1.6x 37.7x11/18/14 BinOptics Corp. M/A-COM Technology Solutions, Inc. Technology Hardware $230.0 NA NA


Recent M&A Activity – Technology

Select Announced M&A Transactions (Q4 2014)

6Source: S&P Capital IQ.

($ in millions)

Announced Date Target Buyer Industry Enterprise

Value ($mm)EV /

RevenueEV /

EBITDA11/18/14 PayEase, Inc. Mozido, LLC Infrastructure Software $750.0 NA NA11/17/14 ChyronHego Corp. Vector Capital Infrastructure Software $111.5 1.9x 20.6x11/14/14 Move, Inc. REA Group Ltd. Internet $963.2 4.0x 121.3x11/13/14 Appia, Inc. Digital Turbine, Inc. Informatics and Data Services $74.6 2.5x NA11/12/14 Big Fish Games, Inc. Churchill Downs, Inc. Internet $835.0 NA 14.6x11/11/14 Xtime, Inc. Cox Automotive, Inc. Infrastructure Software $325.0 NA NA11/04/14 Elecsys Corp. Lindsay Corp. Technology Hardware $71.0 2.4x 18.3x11/03/14 Sapient Corp. Publicis Groupe SA Informatics and Data Services $3,376.4 2.4x 19.2x11/03/14 bswift, LLC Aetna, Inc. Infrastructure Software $400.0 NA NA11/03/14 StyleHaul, Inc. RTL Group SA Internet $150.1 NA NA10/30/14 PRO Unlimited, Inc. Investcorp Bank B.S.C. SaaS $300.0 NA NA10/28/14 TASC, Inc. Engility Holdings, Inc. Enterprise Software $1,100.0 NA NA10/28/14 SiTime Corp. The Hearst Corp. Technology Hardware $200.0 NA NA10/24/14 Riverbed Technology, Inc.(SteelStore Product Line) NetApp, Inc. Infrastructure Software $80.0 NA NA10/23/14 Digital River, Inc. Siris Capital Group, LLC SaaS $645.8 1.7x 18.1x10/21/14 Perimeter Internetworking Corp. BAE Systems plc SaaS $232.5 NA NA10/20/14 ShoreTel, Inc. Mitel Networks Corp. Enterprise Software $475.5 1.4x 22.3x10/16/14 Kx Systems, Inc. First Derivatives plc Informatics and Data Services $124.1 9.4x NA10/03/14 Bluebeam Software, Inc. Nemetschek AG Infrastructure Software $100.0 4.5x NA10/01/14 MobileSpaces, Inc Pulse Secure, LLC Enterprise Software $100.0 NA NA


84

37124

79

7627

8379

0 20 40 60 80 100 120 140Technology Hardware

IT ServicesInternet

Software*

$11.4 $4.4

$19.5 $11.4

$12.7 $3.2

$9.8 $11.2

$0.0 $5.0 $10.0 $15.0 $20.0 $25.0Technology Hardware

IT ServicesInternet

Software*

M&A Activity by Technology Sector

% Change

% Change

U.S. Middle Market M&A Activity by Technology Sector: VALUE

7Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion). *Includes Enterprise Software and Infrastructure Software industry sectors.

U.S. Middle Market M&A Activity by Technology Sector: VOLUME

2%102%

10%

($ in millions)

0%49%

11%37%

38%

2013 2014

2013 2014

HYDE PARK CAPITALInvestment Banking | Mergers & Acquisitions | Capital Raising0369

1215

Informatics &Data Services EnterpriseSoftware Internet IT Services TechnologyHardware SaaS InfrastructureSoftware

Select Private Equity Transactions (Q4 2014)

Financial Sponsors Industry Transactions

Private Equity Activity – TechnologyNumbe

r of Transactio

ns

8

($ in millions)As detailed in the chart to the right, financial sponsors announcedmany transactions in the Technology industry during Q4 2014.Several notable private equity backed transactions wereannounced during Q4 2014, including: Siris Capital Group’sacquisition of Digital River, Inc. for $646 million; and Vista EquityPartner’s acquisition of TransFirst, LLC.During Q4 2014, financial sponsors were most active in theEnterprise Software and Infrastructure Software sectors,announcing 9 and 5 transactions, respectively.

Commentary

Source: S&P Capital IQ.

Announced Date Target Buyer Industry

Enterprise Value 12/23/14 Reading Room, Inc. Armidale Investment Corp. Ltd. Informatics & Data Services NA

12/22/14 Blue Software, LLC Diversis Capital, LLC SaaS NA12/08/14 Bottlenose, Inc. KPMG Capital Informatics & Data Services NA12/01/14 Presidio Holdings, Inc. Apollo Global Management, LLC Infrastructure Software NA11/21/14 TriTech Software Systems, Inc. Insight Venture Partners Enterprise Software NA11/17/14 Fisher/Unitech, Inc. The Riverside Co. IT Services NA11/12/14 Resolve Systems Lotus Innovations Fund L.P. Infrastructure Software NA11/11/14 Just199 Hosting Cloud Equity Group Internet NA11/11/14 Pegasus Electronic Distribution Services H.I.G. Capital, LLC Technology Hardware NA11/06/14 Integrated Microwave Technologies, LLC Skyview Capital, LLC Technology Hardware NA10/30/14 Metalogix Software US, Inc. Permira Advisers, Ltd. Infrastructure Software NA10/24/14 Radiant Zemax, LLC Arlington Capital Partners Enterprise Software NA10/23/14 Digital River, Inc. Siris Capital Group, LLC SaaS $64610/21/14 NetPlus, Inc. StoneCalibre, LLC Internet NA10/16/14 Insurity, Inc. TA Associates Management Enterprise Software NA10/14/14 NAVEX Global, Inc. Vista Equity Partners Infrastructure Software NA10/14/14 iModules Software, Inc. Leeds Equity Partners, LLC Informatics & Data Services NA10/13/14 TransFirst, LLC Vista Equity Partners Infrastructure Software NA10/10/14 Dialogic, Inc. Novacap IT Services $39


80%90%

100%110%120%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14Infrastructure Software S&P 500

80%90%

100%110%120%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14Enterprise Software S&P 500

80%90%

100%110%120%130%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14Software-as-a-Service (SaaS) S&P 500

Industry Sector Overview – Recent Stock Price Performance

Software-as-a-Service (SaaS)

Commentary

9

Enterprise Software

Infrastructure Software

Source: S&P Capital IQ

The charts included on the following pages detail the recent stockprice performance by sector for the leading public companieswithin the Technology industry for the 12-month period endedDecember 31, 2014. The shaded section represents Q4 2014.During the 12-month period ending December 31, 2014, all of theTechnology sector indices except Internet increased, led by theTechnology Hardware and IT Services sectors, which increased18% and 11%, respectively.During the 4th quarter of 2014, six of the seven industry sectorsdelivered positive returns, led by the IT Services (up 12%) andEnterprise Software (up 11%) sectors.

12.4%

5.5%

12.4%

7.1%

12.4%

7.6%


80%90%

100%110%120%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14IT Services S&P 500

80%

90%

100%

110%

120%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14Informatics & Data Services S&P 500

80%90%

100%110%120%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14Internet S&P 500

90%100%110%120%130%

Dec-13 Mar-14 Jun-14 Sep-14 Dec-14Technology Hardware S&P 500

Industry Sector Overview – Recent Stock Price Performance

IT Services

Informatics & Data Services

10

Internet

Technology Hardware


3.2%

12.4%

10.5%

12.4%

12.4%

18.3%

12.4%

0.0%


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAOracle Corp. ORCL $44.97 96.3% $204,569 $192,711 $38,822 $23,861 $16,943 61.5% 43.6% 5.0x 11.4xSalesforce.com CRM $59.31 88.5% $36,574 $36,950 $5,074 $3,867 $87 76.2% 1.7% 7.3x* 423.7x*NetSuite, Inc. N $109.17 90.4% $8,316 $8,131 $556 $379 ($53) 68.2% (9.6%) 14.6x* NMAmdocs, Ltd. DOX $46.66 95.2% $7,485 $6,216 $3,606 $1,283 $683 35.6% 18.9% 1.7x 9.1xPegasystems, Inc. PEGA $20.77 83.6% $1,632 $1,403 $574 $392 $72 68.2% 12.6% 2.4x 19.4x*CSG Systems International, Inc. CSGS $25.07 78.1% $846 $900 $751 $362 $135 48.2% 18.0% 1.2x 6.7x

Average 88.7% $43,237 $41,052 $8,231 $5,024 $2,978 59.6% 14.2% 2.6x 9.0x

Median 89.5% $7,900 $7,174 $2,179 $837 $111 64.8% 15.3% 2.1x 9.1x

Enterprise Value /LTM LTM Margins LTM

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAOracle Corp. ORCL $44.97 96.3% $204,569 $192,711 $38,822 $23,861 $16,943 61.5% 43.6% 5.0x 11.4xSAP AG DB:SAP $71.00 93.1% $84,990 $89,624 $21,255 $14,873 $6,990 70.0% 32.9% 4.2x 12.8xSage Group plc LSE:SGE $7.26 98.3% $7,955 $8,599 $2,120 $1,999 $603 94.3% 28.4% 4.1x 14.3xNetSuite, Inc. N $109.17 90.4% $8,316 $8,131 $556 $379 ($53) 68.2% (9.6%) 14.6* NMExact Holding NV ENXTAM:EXACT $38.37 88.1% $878 $774 $228 $87 $47 38.1% 20.5% 3.4x 16.6x

Average 93.2% $61,342 $59,968 $12,596 $8,240 $4,906 66.4% 23.2% 4.2x 13.8x

Median 93.1% $8,316 $8,599 $2,120 $1,999 $603 68.2% 28.4% 4.1x 13.5x


Industry Sector Overview – Public Company Analysis

Enterprise Resource Planning

($ in millions, except per share)

11Source: S&P Capital IQ *Excluded from average and median calculation.

Supply/Demand Chain Management

Customer Relationship Management

Enterprise Software

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAManhattan Associates, Inc. MANH $40.72 94.3% $3,088 $2,964 $492 $280 $134 56.8% 27.1% 6.0x 22.2xSPS Commerce, Inc. SPSC $56.63 78.9% $952 $821 $128 $88 $13 68.7% 10.4% 6.4x 61.7x*SciQuest, Inc. SQI $14.45 44.2% $385 $254 $102 $70 $5 69.1% 5.1% 2.5x 49.2x*

Average 72.4% $1,475 $1,346 $241 $146 $51 64.9% 14.2% 5.0x 22.2x

Median 78.9% $952 $821 $128 $88 $13 68.7% 10.4% 6.0x 22.2x



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDATeradata Corp. TDC $43.68 88.1% $6,893 $6,527 $2,732 $1,484 $677 54.3% 24.8% 2.4x 9.6xInformatica Corp. INFA $38.14 87.1% $4,231 $3,510 $1,048 $863 $196 82.4% 18.7% 3.3x 17.9xQlik Technologies, Inc. QLIK $30.89 96.1% $2,777 $2,533 $557 $481 $3 86.4% 0.5% 4.5x 887.1x*MicroStrategy, Inc. MSTR $162.40 91.8% $1,844 $1,499 $580 $445 $45 76.7% 7.8% 2.6x 33.2x*

Average 90.8% $3,936 $3,517 $1,229 $818 $230 75.0% 12.9% 3.2x 13.8x

Median 89.9% $3,504 $3,021 $814 $672 $120 79.5% 13.2% 3.0x 13.8x



Human Capital Management


12

Enterprise Software

Content Management

Business Intelligence/Analytics

Source: S&P Capital IQ *Excluded from average and median calculation.

Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAThe Ultimate Software Group, Inc. ULTI $146.82 85.4% $4,308 $4,200 $506 $302 $74 59.8% 14.5% 8.3x 57.1x*Cornerstone OnDemand, Inc. CSOD $35.20 56.9% $1,875 $1,818 $264 $186 ($38) 70.5% (14.2%) 6.9x NM

Average 71.1% $3,091 $3,009 $385 $244 $18 65.1% 0.2% 7.6x NM

Median 71.1% $3,091 $3,009 $385 $244 $18 65.1% 0.2% 7.6x NM


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAAdobe Systems, Inc. ADBE $72.70 93.7% $36,966 $34,741 $4,147 $3,525 $756 85.0% 18.2% 8.4x* 45.9x*Open Text Corp. OTEX $58.26 96.4% $7,141 $7,890 $1,858 $1,336 $557 71.9% 30.0% 4.2x 14.2xSynchronoss Technologies, Inc. SNCR $41.86 77.4% $1,812 $1,765 $457 $273 $125 59.7% 27.3% 3.9x 14.1xLogMeIn, Inc. LOGM $49.34 92.4% $1,253 $1,051 $222 $193 $21 87.1% 9.3% 4.7x 50.9x*

Average 90.0% $11,793 $11,362 $1,671 $1,332 $365 75.9% 21.2% 4.3x 14.2x

Median 93.1% $4,477 $4,827 $1,158 $804 $341 78.4% 22.8% 4.2x 14.2x



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDASalesforce.com CRM $59.31 88.5% $37,018 $38,220 $5,374 $4,084 $303 76.0% 5.6% 7.1x 423.7x*NetSuite, Inc. N $109.17 90.4% $8,316 $8,140 $556 $379 ($51) 68.2% (9.2%) 14.6x* NMathenahealth, Inc. ATHN $145.70 70.5% $5,516 $5,610 $753 $450 $62 59.8% 8.2% 7.5x 91.1x*The Ultimate Software Group, Inc. ULTI $146.82 85.4% $4,308 $4,200 $506 $302 $73 59.8% 14.4% 8.3x 57.1x*Blackbaud, Inc. BLKB $43.26 94.3% $1,981 $2,247 $564 $291 $93 51.6% 16.5% 4.0x 24.2xCornerstone OnDemand, Inc. CSOD $35.20 56.9% $1,875 $1,818 $264 $186 ($43) 70.5% (16.1%) 6.9x NMSynchronoss Technologies, Inc. SNCR $41.86 77.4% $1,812 $1,765 $457 $273 $122 59.7% 26.6% 3.9x 14.5xDemandware, Inc. DWRE $57.54 70.0% $2,003 $1,760 $161 $119 ($21) 73.8% (13.2%) 11.0x* NMExactTarget, Inc. ET $15.20 93.1% $1,137 $1,061 $320 $182 $88 56.8% 27.5% 3.3x 12.0xLogMeIn, Inc. LOGM $49.34 92.4% $1,253 $1,051 $222 $193 $21 87.1% 9.3% 4.7x 50.9x*Constant Contact, Inc. CTCT $36.70 94.5% $1,205 $1,042 $332 $241 $37 72.5% 11.2% 3.1x 28.0xSPS Commerce, Inc. SPSC $56.63 78.9% $952 $821 $128 $88 $13 68.7% 10.3% 6.4x 61.7x*Bazaarvoice, Inc. BV $8.04 92.1% $627 $579 $186 $120 ($26) 64.4% (13.9%) 3.1x NMSciQuest, Inc. SQI $14.45 44.2% $385 $254 $102 $70 $5 69.1% 5.1% 2.5x 49.2x*

Average 80.6% $4,885 $4,898 $709 $498 $48 67.0% 5.9% 5.1x 19.7x

Median 86.9% $1,844 $1,762 $326 $217 $29 68.5% 8.7% 4.4x 19.3x



13

Software-as-a-Service (SaaS)($ in millions, except per share)



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAVMware, Inc. VMW $82.52 73.1% $35,856 $30,286 $6,035 $5,118 $1,529 84.8% 25.3% 5.1x* 19.8xRed Hat, Inc. RHT $69.14 96.3% $13,175 $12,771 $1,726 $1,462 $322 84.7% 18.6% 7.2x* 32.5x*CA Technologies CA $30.45 84.1% $13,459 $12,174 $4,426 $3,780 $1,376 85.4% 31.1% 2.8x 8.8xCitrix Systems, Inc. CTXS $63.80 87.5% $10,927 $11,431 $3,143 $2,669 $674 84.9% 21.4% 3.6x 17.0xSolarWinds, Inc. SWI $49.83 93.2% $3,810 $3,560 $429 $384 $137 89.7% 31.9% 8.5x* 26.1xPegasystems, Inc. PEGA $20.77 83.6% $1,631 $1,420 $590 $405 $76 68.6% 12.8% 2.4x 18.8xProgress Software Corp. PRGS $27.02 97.2% $1,391 $1,107 $333 $301 $105 90.6% 31.5% 3.3x 10.6x

Average 87.9% $11,464 $10,393 $2,383 $2,017 $603 84.1% 24.7% 3.0x 16.8x

Median 87.5% $10,927 $11,431 $1,726 $1,462 $322 84.9% 25.3% 3.0x 17.9x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAEMC Corp. EMC $29.74 96.2% $61,235 $60,038 $24,440 $15,249 $5,831 62.4% 23.9% 2.5x 10.3xIron Mountain, Inc. IRM $38.66 95.7% $7,606 $12,158 $3,118 $1,774 $919 56.9% 29.5% 3.9x 13.2xNetApp, Inc. NTAP $41.45 90.2% $13,538 $9,780 $6,232 $3,940 $998 63.2% 16.0% 1.6x 9.8xTeradata Corp. TDC $43.68 88.1% $6,893 $6,527 $2,732 $1,479 $601 54.1% 22.0% 2.4x 10.9xCommVault Systems, Inc. CVLT $51.69 66.7% $2,477 $2,112 $614 $533 $70 86.8% 11.5% 3.4x 30.1x*

Average 87.4% $18,350 $18,123 $7,427 $4,595 $1,684 64.7% 20.6% 2.8x 11.0x

Median 90.2% $7,606 $9,780 $3,118 $1,774 $919 62.4% 22.0% 2.5x 10.6x



Enterprise IT Management


14

Data Storage





Security


15



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDASymantec Corp. SYMC $25.66 96.1% $17,888 $16,243 $6,615 $5,518 $1,920 83.4% 29.0% 2.5x 8.5xCheck Point Software Technologies, Ltd. CHKP $78.57 97.2% $15,109 $13,797 $1,496 $1,320 $812 88.2% 54.3% 9.2x* 17.0x*VeriSign, Inc. VRSN $57.00 90.5% $8,031 $7,988 $1,010 $822 $628 81.3% 62.2% 7.9x* 12.7xFortinet, Inc. FTNT $30.66 97.4% $5,190 $4,470 $770 $539 $81 70.0% 10.6% 5.8x 55.0x*Trend Micro, Inc. TSE:4704 $32.37 95.1% $4,389 $3,242 $962 $791 $344 82.3% 35.8% 3.4x 9.4x

Average 95.3% $10,122 $9,148 $2,171 $1,798 $757 81.1% 38.4% 3.9x 10.2x

Median 96.1% $8,031 $7,988 $1,010 $822 $628 82.3% 35.8% 3.4x 9.4x



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAThomson Reuters Corp. TSX:TRI $40.47 97.8% $32,820 $40,232 $12,607 $3,398 $2,620 27.0% 20.8% 3.2x 15.4xMoody's Corp. MCO $95.81 93.7% $20,570 $21,671 $3,334 $2,404 $1,535 72.1% 46.0% 6.4x* 14.1xExperian plc LSE:EXPN $16.96 92.0% $16,753 $20,593 $4,890 $2,189 $1,709 44.8% 34.9% 4.2x 12.0xWolters Kluwer NV ENXTAM:WKL $30.68 98.8% $9,202 $11,513 $4,430 $3,010 $1,093 68.0% 24.7% 2.6x 10.5xEquifax, Inc. EFX $80.87 97.9% $9,987 $11,420 $2,436 $1,592 $850 65.3% 34.9% 4.7x 13.4xIHS, Inc. IHS $113.88 79.1% $7,871 $9,561 $2,231 $1,352 $511 60.6% 22.9% 4.3x 18.7xGartner, Inc. IT $84.21 96.2% $7,639 $7,682 $2,021 $1,224 $339 60.5% 16.8% 3.8x 22.1x*FactSet Research Systems, Inc. FDS $140.75 96.8% $5,998 $5,858 $940 $572 $342 60.9% 36.3% 6.2x* 17.2x*Informa plc LSE:INF $7.34 81.6% $4,463 $5,831 $1,772 $678 $509 38.3% 28.7% 3.3x 11.5xDun & Bradstreet Corp. DNB $120.96 94.5% $4,463 $5,806 $1,682 $1,132 $467 67.3% 27.8% 3.5x 12.4xCoreLogic, Inc. CLGX $31.59 87.8% $2,920 $4,145 $1,405 $665 $290 47.3% 20.6% 3.0x 14.3xUBM plc LSE:UBM $7.53 65.8% $2,459 $3,351 $1,163 $257 $277 22.1% 23.8% 2.9x 12.1xFair Isaac Corp. FICO $72.30 97.2% $2,472 $2,984 $794 $536 $185 67.5% 23.3% 3.8x 16.2xMorningstar, Inc. MORN $64.71 77.0% $2,906 $2,713 $760 $441 $220 58.1% 28.9% 3.6x 12.3xNeuStar, Inc. NSR $27.80 55.8% $1,655 $2,121 $964 $716 $359 74.4% 37.2% 2.2x 5.9xIpsos SA ENXTPA:IPS $28.71 68.3% $1,314 $2,000 $2,021 $1,298 $235 64.2% 11.6% 1.0x 8.5xAcxiom Corp. ACXM $20.27 51.6% $1,557 $1,726 $1,067 $233 $174 21.8% 16.3% 1.6x 9.9xForrester Research, Inc. FORR $39.36 94.5% $748 $636 $312 $186 $32 59.6% 10.2% 2.0x 20.0x*

Average 84.8% $7,544 $8,880 $2,491 $1,216 $652 54.4% 25.9% 3.1x 12.5x

Median 92.9% $4,463 $5,819 $1,727 $924 $350 60.6% 24.2% 3.2x 12.3x



16

Informatics & Data Services($ in millions, except per share)



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAAmazon.com, Inc. AMZN $310.35 76.1% $143,382 $140,535 $88,988 $26,236 $4,365 29.5% 4.9% 1.6x 32.2x*eBay, Inc. EBAY $56.12 94.0% $70,823 $68,352 $17,902 $12,170 $5,039 68.0% 28.1% 3.8x 13.6xpriceline.com, Inc. PCLN $1,140.21 82.7% $60,457 $60,054 $8,442 $7,584 $3,288 89.8% 38.9% 7.1x* 18.3xNetflix, Inc. NFLX $341.61 69.8% $21,077 $20,398 $5,505 $1,752 $457 31.8% 8.3% 3.7x 44.7x*Expedia, Inc. EXPE $85.36 92.7% $11,367 $12,025 $5,763 $4,584 $752 79.5% 13.1% 2.1x 16.0xCimpress N.V. CMPR $74.84 97.6% $2,522 $2,849 $1,398 $877 $204 62.7% 14.6% 2.0x 14.0xShutterfly, Inc. SFLY $41.70 75.7% $1,603 $1,493 $922 $469 $90 50.9% 9.8% 1.6x 16.6xBlue Nile, Inc. NILE $36.01 76.3% $440 $349 $474 $87 $18 18.3% 3.8% 0.7x 19.6x

Average 83.1% $38,959 $38,257 $16,174 $6,720 $1,777 53.8% 15.2% 2.2x 16.3x

Median 79.5% $16,222 $16,212 $5,634 $3,168 $605 56.8% 11.4% 2.0x 16.3x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAAkamai Technologies, Inc. AKAM $62.96 96.3% $11,407 $11,254 $1,964 $1,353 $738 68.9% 37.6% 5.7x 15.3xRovi Corp. ROVI $22.59 89.1% $2,070 $2,857 $542 $435 $186 80.2% 34.3% 5.3x 15.4x

Average 92.7% $6,739 $7,055 $1,253 $894 $462 74.6% 35.9% 5.5x 15.3x

Median 92.7% $6,739 $7,055 $1,253 $894 $462 74.6% 35.9% 5.5x 15.3x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAGoogle, Inc. GOOG $526.40 87.0% $361,674 $307,056 $66,001 $40,688 $21,475 61.6% 32.5% 4.7x 14.3xFacebook, Inc. FB $78.02 94.9% $207,845 $196,879 $12,466 $10,404 $6,225 83.5% 49.9% 15.8x* 31.6x*Yahoo!, Inc. YHOO $50.51 96.0% $50,717 $44,079 $4,618 $3,320 $843 71.9% 18.3% 9.5x* 52.3x*Twitter, Inc. TWTR $35.87 50.9% $21,701 $19,686 $1,403 $957 ($331) 68.2% (23.6%) 14.0x* NMScripps Networks Interactive, Inc. SNI $75.27 86.9% $10,703 $12,602 $2,665 $1,887 $1,122 70.8% 42.1% 4.7x 11.2xIAC/InterActiveCorp. IACI $60.79 75.4% $5,383 $5,354 $3,110 $2,226 $498 71.6% 16.0% 1.7x 10.8xYelp, Inc. YELP $54.73 53.8% $4,198 $3,833 $378 $353 $29 93.5% 7.6% 10.2x* 133.8x*WebMD Health Corp. WBMD $39.55 74.2% $1,804 $2,049 $580 $356 $126 61.4% 21.7% 3.5x 16.3x

Average 77.4% $83,003 $73,942 $11,403 $7,524 $3,748 72.8% 20.6% 3.7x 13.1x

Median 81.1% $16,202 $16,144 $2,888 $2,056 $671 71.2% 20.0% 4.1x 12.8x



Online Content and Search


17

Software & Services

e-Commerce

Internet



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAAccenture plc ACN $89.31 97.1% $61,476 $57,563 $30,539 $9,774 $4,820 32.0% 15.8% 1.9x 11.9xCognizant Technology Solutions Corp. CTSH $52.66 95.9% $32,254 $30,116 $10,263 $4,122 $2,093 40.2% 20.4% 2.9x 14.4xWipro, Ltd. WIPRO $8.78 89.3% $21,669 $19,118 $7,350 $2,349 $1,668 32.0% 22.7% 2.6x 11.5xCap Gemini S.A. ENXTPA:CAP $72.00 96.4% $12,256 $10,925 $12,798 $3,163 $1,319 24.7% 10.3% 0.9x 8.3xComputer Sciences Corp. CSC $63.05 94.1% $9,069 $9,425 $12,593 $2,940 $1,319 23.3% 10.5% 0.7x 7.1xCACI International, Inc. CACI $86.18 93.9% $2,131 $3,276 $3,436 $1,135 $315 33.0% 9.2% 1.0x 10.4xSyntel, Inc. SYNT $44.98 92.5% $3,777 $3,049 $911 $378 $274 41.4% 30.0% 3.3x 11.1xUnisys Corp. UIS $29.48 81.8% $1,462 $1,199 $3,356 $778 $207 23.2% 6.2% 0.4x 5.8xManTech International Corp. MANT $30.23 96.5% $1,128 $1,104 $1,774 $250 $126 14.1% 7.1% 0.6x 8.8xSAIC, Inc. SAI $3.27 76.0% $692 $868 $437 $140 $79 32.1% 18.0% 2.0x 11.0xCIBER, Inc. CBR $3.55 69.7% $275 $242 $864 $223 $22 25.8% 2.6% 0.3x 10.9xComputer Task Group, Inc. CTG $9.53 50.1% $155 $114 $393 $81 $20 20.6% 5.2% 0.3x 5.6x

Average 86.1% $12,195 $11,417 $7,060 $2,111 $1,022 28.5% 13.2% 1.4x 9.7x

Median 93.2% $2,954 $3,162 $3,396 $956 $294 28.9% 10.4% 0.9x 10.6x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAFidelity National Information Services, Inc. FIS $62.20 96.7% $17,957 $22,667 $6,414 $2,081 $1,918 32.4% 29.9% 3.5x 11.8xFiserv, Inc. FISV $70.97 96.9% $17,934 $21,443 $5,066 $2,185 $1,503 43.1% 29.7% 4.2x 14.3xTotal System Services, Inc. TSS $33.96 98.3% $6,334 $7,530 $2,447 $778 $683 31.8% 27.9% 3.1x 11.0xGlobal Payments, Inc. GPN $80.73 93.1% $5,653 $7,272 $2,693 $1,689 $568 62.7% 21.1% 2.7x 12.8xBroadridge Financial Solutions, Inc. BR $46.18 98.7% $5,745 $5,955 $2,623 $823 $522 31.4% 19.9% 2.3x 11.4xJack Henry & Associates, Inc. JKHY $62.14 97.3% $5,188 $5,160 $1,255 $537 $435 42.8% 34.6% 4.1x 11.9xACI Worldwide, Inc. ACIW $20.17 93.1% $2,362 $3,255 $1,009 $565 $211 56.0% 21.0% 3.2x 15.4xHeartland Payment Systems, Inc. HPY $53.95 95.9% $2,006 $2,495 $2,311 $341 $168 14.7% 7.3% 1.1x 14.9x

Average 96.3% $7,897 $9,472 $2,977 $1,125 $751 39.4% 23.9% 3.0x 12.9x

Median 96.8% $5,699 $6,613 $2,535 $801 $545 37.6% 24.5% 3.2x 12.3x



IT Consulting & Other Services


18

Data & Transaction Processing

IT Services

Source: S&P Capital IQ.


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 52 Week High Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAFlextronics International, Ltd. FLEX $11.18 $11.83 94.5% $6,697 $7,382 $26,920 $1,552 $1,202 5.8% 4.5% 0.3x 6.1xJabil Circuit, Inc. JBL $21.83 $22.44 97.3% $4,359 $5,134 $15,970 $1,074 $762 6.7% 4.8% 0.3x 6.7xSanmina-SCI Corp. SANM $23.53 $26.08 90.2% $2,037 $2,137 $6,439 $508 $330 7.9% 5.1% 0.3x 6.5xCelestica, Inc. TSX:CLS $11.79 $12.09 97.5% $2,126 $1,561 $5,631 $405 $227 7.2% 4.0% 0.3x 6.9xPlexus Corp. PLXS $41.21 $45.53 90.5% $1,426 $1,452 $2,509 $235 $166 9.4% 6.6% 0.6x 8.8xBenchmark Electronics, Inc. BHE $25.44 $26.06 97.6% $1,379 $962 $2,797 $220 $153 7.9% 5.5% 0.3x 6.3xTTM Technologies, Inc. TTMI $7.53 $8.75 86.1% $632 $856 $1,326 $195 $158 14.7% 11.9% 0.6x 5.4x

Average 93.4% $2,665 $2,783 $8,799 $599 $428 8.5% 6.1% 0.4x 6.7x

Median 94.5% $2,037 $1,561 $5,631 $405 $227 7.9% 5.1% 0.3x 6.5x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 52 Week High Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAApple, Inc. AAPL $110.38 $119.75 92.2% $663,999 $667,738 $199,800 $78,432 $67,663 39.3% 33.9% 3.3x 9.9xSamsung Electronics Co., Ltd. KOSE:A005930 $1,300.47 $1,501.42 86.6% $196,100 $151,430 $201,084 $77,381 $42,823 38.5% 21.3% 0.8x 3.5xInternational Business Machines Corp. IBM $160.44 $199.21 80.5% $162,044 $194,513 $92,793 $46,407 $24,372 50.0% 26.3% 2.1x 8.0xHewlett-Packard Co. HPQ $40.13 $40.95 98.0% $75,986 $82,525 $110,139 $26,465 $13,096 24.0% 11.9% 0.7x 6.3xXerox Corp. XRX $13.86 $14.36 96.5% $16,612 $23,366 $19,540 $6,246 $2,494 32.0% 12.8% 1.2x 9.4xLenovo Group, Ltd. SEHK:992 $1.32 $1.64 80.3% $13,963 $12,928 $44,320 $6,147 $1,566 13.9% 3.5% 0.3x 8.3xNCR Corp. NCR $29.14 $37.73 77.2% $4,989 $8,170 $6,591 $1,788 $755 27.1% 11.5% 1.2x 10.8xPitney Bowes, Inc. PBI $24.37 $28.37 85.9% $4,971 $7,408 $3,822 $2,141 $850 56.0% 22.3% 1.9x 8.7xLexmark International, Inc. LXK $41.27 $51.77 79.7% $2,608 $2,374 $3,711 $1,419 $507 38.2% 13.7% 0.6x 4.7xDiebold, Inc. DBD $34.64 $41.45 83.6% $2,257 $2,327 $3,051 $776 $251 25.4% 8.2% 0.8x 9.3xScanSource, Inc. SCSC $40.16 $42.99 93.4% $1,156 $1,040 $3,040 $303 $119 10.0% 3.9% 0.3x 8.8x

Average 86.7% $104,062 $104,893 $62,535 $22,500 $14,045 32.2% 15.4% 1.2x 8.0x

Median 85.9% $13,963 $12,928 $19,540 $6,147 $1,566 32.0% 12.8% 0.8x 8.7x



PCs, Servers & Components


19

Electronic Manufacturing Services

Technology Hardware



Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 52 Week High Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDACisco Systems, Inc. CSCO $27.82 $28.59 97.3% $143,776 $111,291 $48,083 $29,735 $13,979 61.8% 29.1% 2.3x 8.0xQUALCOMM, Inc. QCOM $74.33 $81.97 90.7% $126,733 $108,941 $26,964 $15,943 $9,381 59.1% 34.8% 4.0x* 11.6xAlcatel-Lucent, SA ENXTPA:ALU $3.59 $4.17 86.2% $9,947 $10,625 $15,951 $5,336 $1,299 33.4% 8.1% 0.7x 8.2xJuniper Networks, Inc. JNPR $22.32 $28.75 77.6% $10,209 $9,586 $4,627 $2,900 $817 62.7% 17.7% 2.1x 11.7xHarris Corp. HRS $71.82 $79.32 90.5% $7,634 $8,816 $4,959 $1,648 $1,063 33.2% 21.4% 1.8x 8.3xPolycom, Inc. PLCM $13.50 $14.06 96.0% $1,917 $1,530 $1,345 $785 $160 58.4% 11.9% 1.1x 9.5xADTRAN, Inc. ADTN $21.80 $27.98 77.9% $1,210 $1,118 $630 $311 $62 49.4% 9.8% 1.8x 18.0x*Netgear, Inc. NTGR $35.58 $36.70 96.9% $1,297 $1,040 $1,394 $398 $139 28.6% 10.0% 0.7x 7.5x

Average 89.1% $37,840 $31,618 $12,994 $7,132 $3,363 48.3% 17.9% 1.5x 9.3x

Median 90.6% $8,791 $9,201 $4,793 $2,274 $940 53.9% 14.8% 1.8x 8.3x


Closing Price % of 52 Equity EnterpriseCompany Ticker 12/31/14 52 Week High Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDAWestern Digital Corp. WDC $110.70 $114.69 96.5% $26,568 $23,800 $15,185 $4,364 $3,027 28.7% 19.9% 1.6x 7.9xSanDisk Corp. SNDK $97.98 $108.77 90.1% $23,340 $23,143 $6,628 $3,169 $2,172 47.8% 32.8% 3.5x* 10.7x*QLogic Corp. QLGC $13.32 $13.44 99.1% $1,166 $878 $503 $306 $107 60.8% 21.2% 1.7x 8.2xEmulex Corp. ELX $5.67 $7.74 73.3% $425 $390 $424 $278 $27 65.5% 6.4% 0.9x 14.4x*

Average 89.7% $12,875 $12,053 $5,685 $2,029 $1,333 50.7% 20.1% 1.4x 8.0x

Median 93.3% $12,253 $12,010 $3,565 $1,737 $1,139 54.3% 20.6% 1.6x 8.0x



Storage & Networks


20

Communications Equipment

Technology Hardware


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