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Technology, Telecom & Digital Media

Industry Update

December 2011

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Table of Contents Technology, Telecom & Digital Media

What We've Been Reading…………………………………………………………………………………………1

Bellwethers……………………………………………………………………………………………2

TTDM Public Market Trading Statistics………………………………………………………………………..…………………..3

Recent TTDM M&A Activity…………………………………………………………………………………………….4

Recent U.S. TTDM Initial Public Offerings………………………………………………………………………….………………...………..5

Public and M&A Market Overview by Sector

Data and Information Services………………………………………………………………..…………..6

Financial Technology…………………………………………………………………………8

Internet & Digital Media……………………………………………………..…………………..10

IT and Tech-Enabled Services………………………………………………………………..13

Software – Application…………………………………………………….…………………..15

Software – Infrastructure……………………………………………………..…………………..18

Software – SaaS……………………………………………………………………………………………………..20

Tech Hardware……………………………………………………………………..…………………..22

Telecom………………………………………………………………………………………………..25

Selected HW&Co. TTDM Transactions…………………………………………………………………………………………..28

TTDM Group Overview and Disclosures…………………………………………………………………………………………..29

Venture capital investors are shifting “away from the frenzy surrounding consumer-focused companies,” such as

social websites and mobile-apps makers, to online business-to-business software companies. The shift is driven by

their hopes to capitalize on enterprises looking for cost effective ways to replace aging traditional enterprise

software, such as email systems. For enterprises, replacing traditional software with online software is faster and

less costly to both implement and upgrade. Venture capital firms invested $1.2 billion into online business-to-

business software companies in Q3 2011, nearly double the amount invested a year prior.

Read the full article here.

Tide Shifts on Web Start-Ups

The Wall Street Journal 11/22/2011

What We’ve Been Reading

According to research firm Canalys, Apple is expected to overtake HP and become the top PC maker in the world in

2012. Apple’s total projected sales of both the iPad and the Mac lineup are fueling this new leadership position.

However, while Apple has seen its PC market share expand from 9% to 15% in four quarters, a Canalys Analyst

foresees iPad shipments in the US coming under pressure with the launch of the Kindle Fire and Nook Tablet at

competitive price points. Similarly, PC makers are fighting to compete with Apple’s profitability with the new

release of Android 4.0 and Intel’s Ultrabooks.


Combined Mac, iPad sales to make Apple largest global PC vendor in 2012

Apple Insider 11/21/2011

SAP AG, the world’s largest provider of business management software, has agreed to buy SuccessFactors for $3.4

billion in cash, an eight times multiple of next year’s forecasted revenue. The transaction continues the trend of

widespread cloud adoption set by companies such as Oracle, Apple, Salesforce.com, IBM, Amazon, Dell, and

Microsoft. Notably, this deal follows shortly after rival Oracle’s acquisition of RightNow. SAP AG Co-CEOs, Bill

McDermott and Jim Hagemann Snabe, have spent $9 billion on recent takeovers as the company strives for better

delivery on SaaS offerings around computing, analytics, and mobile applications.


SAP Sheds M&A Inhibitions as Oracle Rivalry Moves to the Cloud

Bloomberg Businessweek 12/06/2011

Two-thirds of the 90 million smart phone users in the U.S. used their phones for either comparing products and

price, searching for coupons, or locating a retail store in the month of September, according to research by

comScore. These shopping activities, along with responsiveness of the market to consumer demand for increased

mobile shopping functionality, are driving robust growth in m-commerce. An estimated 38% of smart phone users

have already made a purchase with their phone at least once. comScore research shows that 47% of these purchases

were for digital goods, while the remainder was for physical goods and services such as clothing, tickets, or

electronics.


Mobile Shopping goes Mainstream

comScore 12/05/2011

According to a KPMG survey of 10,000 adults worldwide, online shopping is preferred over a physical outlet for

goods across the majority of categories. Non-bank online payment providers such as PayPal are benefitting greatly

from this trend, as evidenced by PayPal being the preferred payment method over credit cards for consumers in both

Europe and the Middle East. In addition, despite privacy and fraud concerns, consumers are increasingly willing to

allow companies to track online usage patterns and personal information in exchange for lower costs or free content.

Globally, 62% of respondents stated their willingness to allow their personal information to be tracked by

advertisers.


Consumers prefer PayPal over credit cards for online shopping

Finextra 12/05/2011

1

http://online.wsj.com/article/SB10001424052970204517204577044460578249868.html

http://www.appleinsider.com/articles/11/11/21/combined_mac_ipad_sales_to_make_apple_top_global_pc_vendor_in_2012.html

http://www.businessweek.com/news/2011-12-06/sap-sheds-m-a-shyness-as-oracle-rivalry-moves-to-the-cloud.html

http://www.comscore.com/Press_Events/Press_Releases/2011/12/Mobile_Shopping_Goes_Mainstream

http://www.finextra.com/News/Fullstory.aspx?newsitemid=23224

Public Market Trading Statistics Bellwethers

Stock

Performance

Last Twelve Months Last 30 Days

Comparable

Trading

Summary

($ in millions) Stock Price CY 2011P Multiples Summary LTM

Market As % of 52- Annual Growth Rates Enterprise Value/Revenue Enterprise Value/EBITDA

Company Capitalization Current Week High Revenue EBITDA LTM CY 2011P LTM CY 2011P

Bellwethers

Apple Inc. 363,352.4$ 390.95$ 91.6% 61.7% 85.2% 2.6x 2.4x 7.9x 7.0x

International Business Machines Corporation 227,402.6 192.94 99.7% 8.0% 10.2% 2.3x 2.2x 9.1x 9.2x

Microsoft Corporation 215,856.6 25.66 87.1% 9.6% 5.3% 2.3x 2.3x 5.5x 5.5x

Google Inc. 202,031.3 623.77 97.0% 30.9% 22.8% 4.6x 4.4x 12.3x 10.4x

Oracle Corporation 160,065.2 31.73 86.9% 16.3% 23.9% 3.9x 3.9x 9.4x 8.2x

Intel Corporation 129,082.2 25.35 99.4% 25.3% 16.9% 2.3x 2.2x 5.2x 5.0x

Samsung Electronics Co. Ltd. 120,607.1 926.69 96.7% NA NA 0.9x NA 5.3x NA

Cisco Systems, Inc. 100,689.9 18.73 83.8% 5.5% 3.8% 1.6x 1.6x 6.4x 5.4x

QUALCOMM Inc. 92,168.4 54.83 91.6% 40.4% 48.1% 4.8x 4.5x 11.4x 9.6x

Amazon.com Inc. 87,308.2 191.99 77.8% 43.0% (31.0%) 1.9x 1.7x 46.3x 46.9x

SAP AG 70,260.1 59.05 95.2% 15.1% 26.8% 3.7x 3.7x 10.1x 10.1x

Hewlett-Packard & Company 55,992.7 28.18 57.1% (1.7%) (11.9%) 0.6x 0.6x 4.8x 4.9x

EMC Corporation 48,102.2 23.58 82.1% 17.7% 10.9% 2.2x 2.2x 9.7x 8.2x

eBay Inc. 39,889.9 30.90 87.4% 26.8% 16.1% 3.3x 3.1x 11.5x 9.3x

Total Comp Set Median 110,648.5$ 89.5% 17.7% 16.1% 2.3x 2.3x 9.3x 8.2x

80%

90%

100%

110%

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130%

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ec-1

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Nasdaq Bellwethers

90%

95%

100%

105%

110%

115%

120%

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11

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Nasdaq Bellwethers

2

LTM Revenue LTM EBITDA

Industry Segment 1 Month 12 Month Growth Margin LTM 2011P 2012P LTM 2011P 2012P

Bellwethers (0.4% ) 10.5% 19.1% 30.7% 2.3x 2.3x 2.1x 9.3x 8.2x 7.5x

Data and Information Services (0.4% ) 3.5% 13.7% 22.9% 2.5x 2.5x 2.4x 9.4x 8.5x 8.7x

Diversified Information Services (0.3%) 3.7% 13.7% 26.5% 2.5x 2.6x 2.5x 8.9x 8.3x 7.8x

Lender/Mortgage/Real Estate Data and Processing 2.0% 9.0% 9.5% 17.0% 1.3x 1.6x 1.6x 9.4x 8.2x 8.7x

Market Data and Research (5.4%) (10.5%) 23.2% 13.3% 1.5x 2.1x 1.9x 11.9x 12.1x 10.1x

Financial Data and Media 0.8% 8.7% 16.6% 37.9% 4.1x 4.5x 4.1x 13.8x 10.2x 9.5x

Financial Technology (0.1% ) 13.6% 12.3% 24.2% 3.0x 2.9x 2.8x 10.2x 9.2x 8.3x

Financial Software and Solutions (1.7%) 9.0% 15.1% 21.8% 3.6x 3.4x 3.1x 11.2x 9.9x 9.1x

Transaction and Payment Processing 1.1% 17.0% 10.9% 27.5% 2.4x 2.3x 2.2x 9.3x 8.6x 7.7x

Internet & Digital Media (5.8% ) (4.4% ) 23.1% 22.7% 2.7x 2.3x 2.0x 9.7x 8.0x 7.8x

Advertising & Marketing (7.6%) 5.8% 59.8% 31.1% 4.8x 4.5x 3.7x 15.8x 14.6x 12.4x

Content & Services (8.2%) (24.2%) 35.9% 14.8% 2.9x 2.6x 2.2x 9.9x 7.9x 9.2x

Content Delivery & Management (11.2%) (16.0%) 18.6% 25.6% 3.1x 2.2x 1.7x 9.2x 7.8x 6.9x

e-Commerce (8.7%) 0.6% 23.5% 16.6% 2.8x 2.2x 1.9x 16.5x 14.2x 11.6x

Diversified Media 4.8% 6.2% 7.4% 22.2% 1.5x 1.5x 1.5x 7.1x 7.1x 6.5x

IT and Tech-Enabled Services (1.2% ) 2.6% 15.1% 14.9% 1.2x 1.3x 1.2x 7.6x 8.4x 7.3x

IT Services (1.3%) (3.5%) 17.6% 10.4% 0.5x 1.2x 1.2x 5.0x 7.9x 7.3x

Government IT & BPO (0.8%) 11.5% 11.8% 9.3% 0.5x 0.5x 0.5x 6.1x 6.1x 5.8x

Onshore BPOs (4.4%) 6.9% 2.3% 16.2% 0.8x 1.0x 0.9x 4.7x 4.3x 4.2x

Offshore BPOs 0.2% 0.3% 21.5% 19.7% 2.4x 2.3x 2.0x 11.9x 11.9x 9.9x

Software – Application 0.2% 18.7% 20.1% 20.3% 3.5x 3.5x 3.2x 15.3x 11.6x 10.6x

Enterprise Software 0.5% 23.3% 21.1% 24.7% 3.1x 3.3x 3.1x 10.5x 11.2x 9.8x

Product Lifecycle Management/Technical Design 1.5% 12.9% 18.6% 21.5% 3.0x 2.5x 2.3x 13.6x 9.6x 8.5x

Customer Engagement/Call Center Management (4.1%) 18.4% 15.7% 16.9% 2.4x 2.4x 2.2x 14.7x 9.9x 9.1x

Human Capital Management 15.2% 25.3% 27.2% 11.3% 6.9x 6.6x 5.3x 54.2x 25.2x 23.1x

Vertically Focused - Public Sector (4.4%) 22.6% 13.8% 19.4% 3.4x 3.3x 3.0x 17.6x 13.9x 12.1x

Vertically Focused - Healthcare IT (3.8%) 11.6% 24.9% 26.6% 4.4x 4.3x 3.8x 16.4x 13.5x 11.4x

Software – Infrastructure (3.0% ) 3.1% 15.0% 22.1% 2.3x 2.4x 2.1x 10.4x 10.2x 8.5x

Enterprise IT Management (2.6%) (5.4%) 10.9% 23.3% 2.3x 2.2x 2.1x 10.0x 8.0x 6.6x

Security (3.5%) 8.1% 13.7% 27.1% 5.3x 5.5x 4.8x 12.5x 11.1x 9.9x

Enterprise Storage (3.3%) 16.3% 22.1% 17.7% 3.0x 2.9x 2.6x 13.5x 11.0x 10.0x

Software – SaaS 4.5% 16.3% 27.6% 16.7% 6.2x 5.9x 4.8x 27.7x 20.2x 18.3x

Technology Hardware (2.5% ) (4.8% ) 11.0% 19.7% 1.0x 1.1x 1.1x 5.7x 6.1x 5.4x

Semiconductor Devices (5.8%) (16.3%) 12.2% 24.1% 1.9x 1.9x 1.7x 7.5x 6.8x 6.7x

Semiconductor Equipment (0.4%) 5.9% 11.2% 24.8% 1.1x 1.2x 1.3x 4.3x 5.7x 5.4x

Electronic Manufacturing (1.5%) (5.2%) 13.3% 5.4% 0.3x 0.3x 0.2x 4.9x 4.8x 4.6x

PCs, Servers, and Computing Components (2.0%) 3.5% 5.1% 13.2% 0.7x 0.7x 0.7x 6.4x 6.8x 6.1x

Storage and Networking Components 2.1% (12.7%) 8.4% 21.8% 1.2x 1.2x 1.1x 5.4x 5.0x 4.4x

Telecommunications (1.8% ) (10.9% ) 17.5% 25.6% 1.8x 1.8x 1.7x 7.9x 7.4x 6.5x

Network Optimization (0.4%) (24.2%) 18.6% 19.1% 3.5x 3.4x 3.0x 11.3x 8.9x 7.1x

Fiber Optics (14.2%) (19.0%) 20.6% 13.1% 1.2x 1.2x 1.0x 10.3x 14.3x 8.9x

Telecom/Networking Equipment (5.7%) (16.6%) 17.5% 18.1% 1.1x 1.2x 1.1x 8.0x 7.4x 6.5x

Carriers and Content Providers 2.3% (7.1%) 7.3% 26.0% 1.7x 1.7x 1.6x 4.8x 5.4x 5.2x

Infrastructure Services 3.7% 7.8% 12.2% 60.8% 11.3x 11.0x 9.7x 18.6x 17.5x 15.3x

Managed Services 2.1% 36.4% 30.1% 38.8% 4.5x 4.2x 3.6x 11.0x 9.4x 8.0x

NASDAQ (1.4% ) 3.9%

Stock Price % Change TEV / Revenue Multiple TEV / EBITDA Multiple

0%

20%

40%

60%

80%

100%

120%

Data and

Information Services

Financial

Technology

Internet &

Digital Media

IT and

Tech-Enabled Services

Software –

Application

Software –

Infrastructure

Software –

SaaS

Technology

Hardware

Telecommunications

Comparable

Trading

Summary

Valuation

Summary

Current Valuation Versus Historical Five-Year Average

Five-Year Average

Note: Based on current TEV/LTM EBITDA versus five-year historical average.

Note: Public comparables exclude companies with market capitalization below $500 million.

TTDM Public Market Trading Statistics by Vertical

3

Recent M&A

Statistics

Note: Includes announced domestic transactions over the last six months where enterprise value is more than $40 million and revenue multiples are publicly available.

Transaction Volume and Revenue Multiples Transaction Volume by Segment Summary

Statistics

Recent TTDM M&A Activity

Note: Includes closed transactions over the last twelve months where enterprise value is publicly disclosed and more than $40 million.

Date Date Enterprise LTM Multiples Summary

Announced Closed Target Acquirer Value (mm) Revenue EBITDA

12/08/11 Pending DemandTec, Inc. International Business Machines Corp. 422.2$ 4.8 x NA

12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0 x NA

11/21/11 Pending Accu-Sort Systems, Inc. Datalogic SpA 135.0 1.5 x 7.6 x

11/18/11 11/18/11 Fairchild Industrial Products Company Rotork plc 75.8 3.6 x NA

11/14/11 11/14/11 LesPAC Inc. Mediagrif Interactive Technologies Inc. 72.5 5.7 x NA

11/11/11 12/02/11 Tri-Star Electronics International, Inc. Carlisle Interconnect Technologies Inc. 285.0 3.0 x NA

11/06/11 Pending Tekelec Private Equity Consortia 507.1 1.3 x 11.4 x

11/01/11 Pending INX Inc. Presidio, Inc. 148.1 0.4 x 41.6 x

10/27/11 Pending MOSAID Technologies Inc. Sterling Partners 444.8 5.5 x 10.6 x

10/23/11 Pending Rightnow Technologies Inc. Oracle Corporation 1,521.4 7.0 x 63.8 x

10/12/11 Pending Genesys Telecommunications Laboratories, Inc. Permira Advisers; Technology Crossover Ventures 1,500.0 3.0 x NA

10/10/11 10/10/11 Qumu, Inc. Rimage Corp. 51.8 5.0 x NA

10/10/11 11/21/11 BigBand Networks, Inc. Arris Group Inc. 41.9 0.5 x NA

10/07/11 10/18/11 Mobile Complete, Inc. Keynote Systems Inc. 85.5 4.3 x NA

09/22/11 11/10/11 Sage Software Healthcare, Inc. Vista Equity Partners 205.0 1.3 x NA

09/14/11 10/05/11 LitePoint Corporation Teradyne Inc. 580.0 6.7 x NA

09/11/11 Pending NetLogic Microsystems Inc. Broadcom Corp. 3,441.5 8.5 x 35.5 x

09/01/11 Pending Algorithmics, Inc. International Business Machines Corp. 387.0 2.4 x 35.5 x

08/22/11 08/24/11 Multifamily Technology Solutions, Inc. RealPage, Inc. 74.4 4.6 x NA

08/22/11 Pending Renaissance Learning Inc. PLATO Learning, Inc. 484.6 3.6 x 12.2 x

08/18/11 Pending Autonomy Corp. plc Hewlett-Packard Company 6,250.9 6.7 x 15.3 x

08/17/11 Pending MOSAID Technologies Inc. Wi-Lan Inc. 340.0 4.2 x 8.1 x

08/16/11 09/30/11 Vangent, Inc. General Dynamics Information Technology, Inc. 1,299.1 1.8 x 14.9 x

08/15/11 Pending Motorola Mobility Holdings, Inc. Google Inc. 8,984.2 0.7 x 29.6 x

08/15/11 10/03/11 OMEGA Engineering, Inc. Spectris plc 475.0 2.8 x NA

08/03/11 Pending Emdeon Inc. The Blackstone Group; Hellman & Friedman 3,306.3 3.1 x 13.1 x

07/31/11 Pending PAETEC Holding Corp. Windstream Corporation 2,253.8 1.2 x 7.2 x

07/26/11 Pending S1 Corporation ACI Worldwide, Inc. 438.7 1.9 x 35.8 x

07/19/11 Pending Insider Guides, Inc. Quepasa Corp. 100.0 3.7 x 19.6 x

07/13/11 07/13/11 Global 360, Inc. Open Text Corp. 260.0 2.9 x NA

07/11/11 08/22/11 Radiant Systems Inc. NCR Corp. 1,139.1 3.1 x 20.7 x

07/05/11 Pending Travelex Global Business Payments, Inc. Western Union Co. 606.0 4.3 x 13.6 x

07/05/11 07/05/11 Aegis Lightwave, Inc. II-VI Inc. 52.0 2.0 x NA

06/30/11 10/04/11 Blackboard Inc. Providence Equity Partners LLC 1,767.1 3.7 x 22.3 x

06/29/11 08/16/11 Interactive TKO, Inc. CA Technologies 330.0 8.5 x NA

06/28/11 07/01/11 OneNeck IT Services Corporation TDS Hosted & Managed Services, LLC 95.0 2.6 x NA

06/16/11 07/14/11 TAOS Inc. Austriamicrosystems AG 329.9 4.1 x NA

06/15/11 07/22/11 MediaMind Technologies Inc. DG FastChannel, Inc. 422.7 5.0 x 28.5 x

06/14/11 Pending Telcordia Technologies, Inc. LM Ericsson Telephone Co. 1,150.0 1.6 x NA

06/12/11 08/19/11 EMS Technologies Inc. Honeywell International Inc. 494.0 1.4 x 12.7 x

06/10/11 08/22/11 Gerber Scientific Inc. Vector Capital; CITIC Capital Private Equity 286.9 0.6 x 17.8 x

Median 422.7$ 3.1x 16.6x

2.3 x

2.2 x

2.8 x

1.4 x

2.7 x

3.3 x

4.7 x

1.2 x1.4 x

0.0 x

0.5 x

1.0 x

1.5 x

2.0 x

2.5 x

3.0 x

3.5 x

4.0 x

4.5 x

5.0 x

0

20

40

60

80

100

120

Data and Information

Services

Financial Technology

Internet & Digital Media

IT and Tech-Enabled Services

Software –Application

Software –Infrastructure

Software –SaaS

Technology Hardware

Telecom

LT

M R

ev

en

ue M

ultip

leTra

nsa

cti

on

Volu

me

M&A Transaction Volume Median LTM Revenue Multiple

Data and Information

Services5%

Financial Technology

5%

Internet & Digital Media

15%

IT and Tech-Enabled Services

10%

Software –Application

17%

Software –Infrastructure

6%

Software –SaaS4%

Technology Hardware

24%

Telecom14%

4

($ in millions) IPO Details Financials at IPO (LTM) Trading Multiples

Gross Offering % Post-IPO EBITDA 1YR Rev. TEV/LTM TEV/LTM

Date Company Amount Secondary Perf. Revenue Margin Growth Revenue EBITDA

11/18/11 Digital Domain Media Group, Inc. 41.8$ 0.0% (31.4%) 119.6$ NM 87.0% 3.1x NM

11/17/11 Intermolecular, Inc. 96.5 41.1% (8.8%) 52.9 8.1% 96.4% 9.0x 111.8x

11/16/11 Angie's List, Inc. 114.3 28.9% 20.1% 78.7 NM 72.6% 11.0x NM

11/15/11 Invensense, Inc. 75.0 0.0% 44.3% 129.7 30.6% 63.0% 6.2x 20.2x

11/03/11 Groupon, Inc. 700.0 0.0% (3.8%) 1,290.5 NM 8,775.4% 9.3x NM

11/08/11 Imperva Inc. 90.0 5.0% 55.6% 72.0 NM 82.9% 8.5x NM

10/13/11 Ubiquiti Networks, Inc. 105.6 66.0% 30.0% 243.0 33.1% 77.4% 5.6x 17.1x

08/16/11 Tudou Holdings Limited 174.0 7.2% (54.3%) 51.3 NM 292.9% 6.4x NM

08/10/11 Carbonite, Inc. 62.5 14.1% 20.3% 49.1 NM 157.0% 5.8x NM

07/26/11 Tangoe, Inc. 87.7 14.5% 39.4% 84.2 7.7% 36.0% 6.5x 85.1x

07/19/11 Zillow, Inc. 69.2 0.0% 15.7% 44.9 2.8% 156.7% 13.9x 492.9x

06/28/11 HomeAway, Inc. 216.0 25.9% (5.7%) 183.7 17.1% 52.8% 13.3x 77.7x

06/16/11 Bankrate, Inc. 300.0 37.5% 17.9% 285.2 32.6% 123.5% 8.0x 24.5x

06/14/11 Pandora Media, Inc. 234.9 59.1% (35.8%) 167.2 NM 203.0% 9.7x NM

06/08/11 Fusion-io, Inc. 233.7 12.6% 53.8% 136.4 NM 1,244.2% 18.4x NM

Median 105.6$ 14.1% 17.9% 119.6$ 17.1% 96.4% 8.5x 77.7x

Recent IPO

Statistics

Note: Includes major U.S. exchanges and transactions for companies located in the U.S. over the last six months.

Number of Transactions by Tier Percentage of Transactions by Tier

Tier by Market Capitalization on IPO Pricing Date

$0 - $250M $250M - $500M $500M - $1,000M $1,000M - $2,000M $2,000M +

Recent U.S. TTDM Initial Public Offerings

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 YTD

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2005 2006 2007 2008 2009 2010 2011 YTD

Note: Includes major U.S. exchanges and transactions for companies located in the U.S.

5

Stock

Performance

Public Market Trading Statistics Data and Information Services

Comparable

Trading

Summary





Diversified Information Services

Thomson Reuters Corporation 22,022.4$ 26.61$ 64.9% 0.7% 12.3% 2.1x 2.2x 8.9x 7.9x

Experian plc 13,269.5 13.21 98.1% NA NA 3.3x NA 10.4x NA

Reed Elsevier plc 9,880.2 8.12 87.2% 2.9% 7.7% NA 0.9x NA 2.9x

Verisk Analytics, Inc. 6,224.3 38.06 95.7% 16.0% 16.0% 5.6x 5.4x 13.0x 12.3x

IHS Inc. 5,700.8 87.69 97.4% 23.5% 19.0% 5.0x 4.8x 22.2x 16.4x

Wolters Kluwer NV 5,366.9 17.79 73.8% NA NA 1.6x NA 7.2x NA

Alliance Data Systems Corporation 5,150.2 103.07 96.0% 14.1% 22.4% 3.8x 3.7x 13.0x 11.7x

Equifax Inc. 4,570.8 37.75 94.6% 4.9% 7.1% 2.8x 2.8x 8.8x 8.5x

Informa plc 3,396.1 5.65 77.0% NA NA 2.4x NA 9.1x NA

NeuStar, Inc. 2,443.4 33.66 96.9% 15.6% 19.1% 3.5x 3.3x 8.2x 7.4x

UBM plc 1,882.3 7.73 67.6% 11.0% 17.8% 1.8x 1.8x 8.6x 8.0x

Fair Isaac Corporation 1,303.1 36.50 97.0% 2.8% 15.2% 2.5x 2.5x 9.5x 9.3x

Ipsos SA 1,271.8 28.12 56.3% NA NA 0.9x NA 7.2x NA

Acxiom Corporation 1,011.3 12.92 68.6% 3.9% (2.1%) 1.0x 1.0x 5.0x 4.6x

Median 4,860.5$ 90.9% 8.0% 15.6% 2.5x 2.6x 8.9x 8.3x

Lender/Mortgage/Real Estate Data and Processing

Fidelity National Financial, Inc. 3,498.0$ 15.96$ 91.6% (8.0%) (1.4%) 0.8x 0.8x 6.6x 8.2x

CoStar Group Inc. 1,684.7 66.49 90.5% 11.2% 1.6% 4.6x 4.5x 27.2x 24.9x

Lender Processing Services, Inc. 1,627.7 19.29 55.3% (13.4%) (29.3%) 1.2x 1.3x 5.4x 5.9x

CoreLogic, Inc. 1,462.2 13.73 65.5% (26.6%) (28.8%) 1.3x 1.6x 9.4x 7.6x

LoopNet, Inc. 735.7 17.88 94.4% 9.9% (9.0%) 7.3x 7.2x 34.8x 24.9x

Median 1,627.7$ 90.5% (8.0% ) (9.0% ) 1.3x 1.6x 9.4x 8.2x

Market Data and Research

Gartner Inc. 3,530.1$ 37.20$ 85.7% 14.2% 21.8% 2.5x 2.4x 16.0x 13.2x

Aegis Group plc 2,509.9 2.19 99.3% NA NA 1.2x NA 10.5x NA

Ipsos SA 1,271.8 28.12 56.3% NA NA 0.9x NA 7.2x NA

Forrester Research Inc. 738.9 32.59 81.5% 13.8% 20.4% 1.8x 1.8x 13.3x 11.0x

Median 1,890.8$ 83.6% 14.0% 21.1% 1.5x 2.1x 11.9x 12.1x

Financial Data and Media

Moody's Corporation 7,816.6$ 35.21$ 84.0% 12.6% 15.8% 3.6x 3.6x 8.3x 8.3x

FactSet Research Systems Inc. 4,290.2 94.99 84.5% 13.9% 10.1% 5.7x 5.5x 14.9x 14.2x

MSCI Inc. 4,099.3 34.00 83.4% 37.7% 41.0% 7.6x 5.6x 17.2x 12.1x

Dun & Bradstreet Corporation 3,466.3 71.31 81.9% 5.7% 7.0% 2.5x 2.4x 8.3x 7.6x

Morningstar Inc. 2,985.1 59.69 93.3% NA NA 4.1x NA 13.8x NA

Median 4,099.3$ 84.0% 13.2% 13.0% 4.1x 4.5x 13.8x 10.2x

Total Data and Information Median 3,431.2$ 85.1% 11.0% 12.3% 2.5x 2.5x 9.4x 8.5x

80%

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Nasdaq Data and Information Services

6

Date Date Enterprise LTM Multiples


11/28/11 Pending Systems@Work Pte Ltd. Wirecard AG 78.4$ NA NA

11/14/11 11/14/11 LesPAC inc. Mediagrif Interactive Technologies Inc. 71.3 5.7 x NA

11/14/11 Pending Model Metrics, Inc. Salesforce.com 57.6 NA NA

11/08/11 Pending Kobo, Inc. Rakuten, Inc. 315.0 NA NA

10/10/11 Pending MF Honyvem Cerved Group 61.6 2.9 x NA

10/04/11 Pending Gluster, Inc. Red Hat, Inc. 140.0 NA NA

09/19/11 10/26/11 The Fizzback Group Limited NICE Systems Ltd. 80.0 NA NA

07/19/11 08/04/11 Vovici Corporation Verint Systems Inc. 75.4 NA NA

07/13/11 07/13/11 Global 360, Inc. Open Text Corp. 258.7 2.9 x NA


06/14/11 07/29/11 Prosodie SA Cap Gemini S.A. 552.8 2.2 x 11.9 x

06/07/11 07/19/11 Mamut ASA Visma ASA 161.8 1.7 x 13.6 x

Median 87.5$ 2.7x 12.7x

Recent M&A

Activity

Comparable Transactions Data and Information Services

Summary

Statistics

M&A Transaction Volume and Revenue Multiples

Note: Includes announced transactions over the last six months where enterprise value is publicly disclosed and more than $40 million.

Note: Includes closed transactions where enterprise value is publicly disclosed and more than $40 million.

2.7x 2.7x

2.2x

3.7x

2.5x2.7x 2.8x 2.8x

2.0x

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7

Stock

Performance

Public Market Trading Statistics Financial Technology

Comparable

Trading

Summary





Financial Software and Solutions 1,303.5$ -$ 0.8$ 0.1$ 0.2$ 3.6$ 3.4$ 11.2$ 9.9$

Intuit Inc. 16,099.0$ 54.16$ 95.9% 13.6% 22.6% 4.1x 4.0x 12.3x 10.7x

Jack Henry & Associates Inc. 2,878.8 33.25 97.3% 8.5% 12.4% 3.0x 2.9x 9.3x 9.2x

Broadridge Financial Solutions Inc. 2,756.6 22.21 89.4% 8.4% 18.9% 1.4x 1.4x 8.4x 7.7x

Advent Software, Inc. 1,347.2 26.52 83.8% 15.7% 37.0% 4.1x 4.0x 18.8x 13.5x

SS&C Technologies Holdings, Inc. 1,259.9 16.28 74.2% 13.1% 16.1% 3.8x 3.7x 10.2x 9.2x

Financial Engines, Inc. 1,009.2 22.18 76.5% 28.7% 75.0% 6.4x 6.1x 38.4x 23.1x

ACI Worldwide, Inc. 1,002.4 29.92 78.9% 10.1% 26.3% 1.9x 1.9x 8.7x 8.9x

Bottomline Technologies Inc. 795.8 22.09 78.2% 26.0% 24.3% 3.4x 3.2x 20.9x 16.5x

Median 1,303.5$ 81.4% 13.4% 23.5% 3.6x 3.4x 11.2x 9.9x

Transaction and Payment Processing 7,561.6$ -$ 0.9$ 0.1$ 0.1$ 2.4$ 2.3$ 9.3$ 8.6$

Visa, Inc. 65,544.8$ 95.37$ 96.7% 12.8% 16.9% 6.7x 6.5x 10.7x 10.4x

Mastercard Inc. 47,124.6 371.30 96.4% 21.5% 25.1% 6.6x 6.3x 12.1x 11.6x

Automatic Data Processing, Inc. 25,480.7 52.14 94.6% 12.6% 8.0% 2.4x 2.3x 11.1x 11.2x

Paychex Inc. 10,762.7 29.70 87.6% 6.7% 11.2% 4.7x 4.6x 11.1x 11.0x

Fiserv, Inc. 8,134.6 57.75 88.3% 5.0% 3.5% 2.7x 2.6x 8.8x 8.3x

Fidelity National Information Services, Inc. 7,561.6 25.25 74.8% 10.4% 6.9% 2.2x 2.1x 7.9x 7.2x

Total System Services, Inc. 4,085.6 20.29 99.0% 0.3% 4.3% 2.3x 2.3x 9.3x 8.2x

Global Payments Inc. 3,518.7 44.93 83.7% 18.1% 26.0% 1.9x 1.9x 8.4x 7.9x

Wright Express Corporation 2,050.3 53.03 92.8% 44.2% 46.1% 4.6x 4.3x 10.5x 9.0x

Euronet Worldwide Inc. 899.7 17.88 87.0% 12.5% 2.8% 0.9x 0.9x 7.6x 7.2x

Heartland Payment Systems, Inc. 872.9 22.12 96.2% 7.3% 41.9% 0.5x 1.9x 9.3x 8.6x

Median 7,561.6$ 92.8% 12.5% 11.2% 2.4x 2.3x 9.3x 8.6x

Total Financial Technology Median 2,878.8$ 88.3% 12.6% 18.9% 3.0x 2.9x 10.2x 9.2x

70%

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90%

100%

110%

120%

130%

140%

150%

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90%

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Nasdaq Financial Technology

8




09/28/11 10/28/11 Triple Point Technology, Inc. Welsh, Carson, Anderson & Stowe 500.0 NA NA

09/23/11 09/23/11 eFront SA Francisco Partners Management LLC 57.2 1.5x 12.8x

09/14/11 Pending Fundtech Ltd. BServ, Inc. 308.3 2.0x 15.5x

09/01/11 10/21/11 Algorithmics, Inc. OpenPages, Inc. 380.2 2.3x 34.9x

08/08/11 08/08/11 Plimus, Inc. Great Hill Partners, LLC 115.0 NA NA

07/26/11 Pending S1 Corporation ACI Worldwide, Inc. 422.3 1.8x 29.8x

07/07/11 08/11/11 Zong, Inc. PayPal, Inc. 240.0 NA NA

07/05/11 11/07/11 Travelex Global Business Payments, Inc. Western Union Co. 975.3 4.3x 13.6x

06/30/11 07/15/11 EchoSign, Inc. Adobe Systems Inc. 80.0 NA NA

06/13/11 08/31/11 NetVision Ltd. Cellcom Israel Ltd. 454.8 1.2x NA

06/10/11 Pending Dynasty Technology Group SA Wincor Nixdorf AG 74.0 NA NA

06/09/11 06/09/11 Fundamo (Proprietary) Limited Visa, Inc. 110.0 NA NA

Median 240.0$ 1.9x 15.5x

4.7x

1.0x

1.8x

3.9x

3.2x3.4x

3.1x

1.7x1.9x

3.0x

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0.5x

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Recent M&A

Activity

Comparable Transactions Financial Technology

Summary

Statistics




9

Comparable

Trading

Summary

Public Market Trading Statistics Internet & Digital Media

Stock

Performance


70%

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130%

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Nasdaq Internet & Digital Media




Advertising & Marketing 9,507.7$ -$ 0.8$ 0.3$ 0.4$ 4.8$ 4.5$ 15.8$ 14.6$

Google Inc. 202,031.3$ 623.77$ 97.0% 30.9% 22.8% 4.6x 4.4x 12.3x 10.4x

Baidu, Inc. 45,809.8 131.25 79.1% 90.1% 98.2% 22.8x 20.0x 40.1x 33.6x

Yahoo! Inc. 19,646.3 15.84 84.1% (3.7%) (7.8%) 2.4x 2.8x 8.8x 8.2x

Groupon, Inc. 12,271.3 19.24 61.8% NA NA 9.3x 7.5x NM NM

Yandex N.V. 6,744.1 20.88 49.7% NA NA 11.1x 9.0x 24.9x 20.2x

Bankrate, Inc. 1,768.9 17.69 80.6% NA NA 4.9x 4.6x 15.8x 14.6x

ValueClick, Inc. 1,343.6 16.27 82.5% 29.7% 36.0% 2.7x 2.5x 9.7x 8.2x

Constant Contact, Inc. 740.0 24.88 68.5% 22.9% 55.5% 3.0x 2.9x 33.4x 17.3x

Median 9,507.7$ 79.9% 29.7% 36.0% 4.8x 4.5x 15.8x 14.6x

Content & Services 1,021.0$ -$ 0.5$ 0.2$ 0.4$ 2.9$ 2.6$ 9.9$ 7.8$

LinkedIn Corporation 7,141.1$ 73.20$ 59.7% NA NA 15.5x 13.1x NM 86.5x

VeriSign, Inc. 5,338.3 33.56 88.9% 4.3% 18.2% 6.3x 6.1x 12.5x 10.8x

Netflix, Inc. 3,772.3 68.14 22.4% 47.2% 39.3% 1.2x 1.1x 8.4x 7.9x

IAC/InterActiveCorporation 3,561.0 43.41 98.9% 22.9% 39.1% 1.4x 1.4x 11.3x 7.8x

WebMD Health Corp. 1,973.3 35.02 59.8% 5.0% 7.0% 2.9x 3.0x 11.2x NM

Pandora Media, Inc. 1,657.2 10.27 39.5% NA NA 6.5x 5.7x NM NM

AOL, Inc. 1,369.6 14.07 54.2% (7.4%) (48.1%) 0.5x 0.5x 2.7x 2.9x

Ancestry.com Inc. 1,021.0 23.17 50.6% 33.2% 42.1% 2.6x 2.4x 7.7x 6.8x

Monster Worldwide, Inc. 942.8 7.66 29.6% 11.5% 71.8% 0.8x 0.8x 5.8x 4.3x

Angie's List, Inc. 775.6 14.01 74.7% NA NA 9.9x NA NM NA

The Active Network, Inc. 721.2 13.29 56.4% NA NA 1.8x 1.7x 24.8x 15.4x

Demand Media, Inc. 673.3 8.03 29.3% NA NA 1.9x 1.9x 9.9x 7.0x

comScore, Inc. 667.5 20.21 64.6% 34.0% 31.7% 2.9x 2.8x 63.8x 14.2x

Zillow, Inc. 639.2 23.13 38.6% NA NA 9.7x 8.4x NM 50.8x

Dice Holdings, Inc. 552.2 8.31 44.3% 39.9% 49.2% 2.9x 2.8x 7.3x 6.6x

Median 1,021.0$ 54.2% 22.9% 39.1% 2.9x 2.6x 9.9x 7.8x

Content Delivery & Management

Akamai Technologies, Inc. 5,065.3$ 28.23$ 51.7% 12.1% 7.3% 3.5x 3.4x 9.0x 7.7x

Level 3 Communications Inc. 4,182.1 20.14 50.3% 44.3% 39.3% 3.1x 2.2x 13.6x 9.9x

Rovi Corporation 2,976.5 27.06 38.9% 43.6% 30.1% 5.1x 4.5x 12.8x 9.4x

Mentor Graphics Corporation 1,409.7 12.84 77.5% 12.3% 28.3% 1.5x 1.5x 9.2x 7.8x

EarthLink Inc. 666.8 6.25 67.7% 116.4% 55.9% 0.9x 0.8x 3.7x 3.2x

Median 2,976.5$ 51.7% 43.6% 30.1% 3.1x 2.2x 9.2x 7.8x

10

e-Commerce

Amazon.com Inc. 87,308.2$ 191.99$ 77.8% 43.0% (31.0%) 1.9x 1.7x 46.3x 46.9x

eBay Inc. 39,889.9 30.90 87.4% 26.8% 16.1% 3.3x 3.1x 11.5x 9.3x

priceline.com Inc. 23,851.0 479.10 85.3% 40.2% 68.4% 5.4x 5.1x 16.5x 14.9x

Rakuten, Inc. 14,041.3 1,069.27 87.8% NA NA 3.4x NA 13.9x NA

Expedia Inc. 7,693.0 28.81 87.6% 16.8% 4.8% 1.9x 1.8x 8.0x 7.1x

Mercadolibre, Inc. 4,176.7 94.62 99.1% 39.3% 36.7% 14.7x 13.5x 41.0x 37.4x

Ctrip.com International Ltd. 3,610.6 25.15 49.7% 29.1% 16.0% 5.3x 5.1x 14.7x 13.5x

HomeAway, Inc. 2,052.4 25.47 55.7% NA NA 8.7x 8.2x 52.1x 28.6x

Live Nation Entertainment, Inc. 1,646.6 8.69 69.9% 9.2% 17.4% 0.5x 0.5x 6.0x 6.6x

Vistaprint N.V. 1,273.7 33.16 59.0% 26.6% 4.3% 1.3x 1.2x 8.2x 7.3x

Liquidity Services, Inc. 1,046.2 36.97 99.5% 23.4% 60.4% 2.8x 2.6x 18.4x 16.0x

Shutterfly, Inc. 964.2 27.81 41.7% 63.8% 53.5% 2.4x 1.9x 46.7x 9.5x

OpenTable, Inc. 908.8 38.26 32.2% 40.8% 52.3% 6.2x 6.0x 22.2x 15.9x

Digital River Inc. 565.6 15.15 38.0% 7.8% 17.8% 0.4x 0.4x 2.7x 1.9x

Blue Nile Inc. 523.1 38.59 59.9% 9.3% (7.0%) 1.4x 1.3x 22.3x 17.2x

Median 2,052.4$ 69.9% 26.8% 17.4% 2.8x 2.2x 16.5x 14.2x

Diversified Media

Walt Disney Company 66,165.6$ 36.83$ 83.1% 6.6% 13.9% 1.9x 1.9x 8.0x 7.5x

Comcast Corporation 63,189.1 23.19 85.4% 49.8% 25.5% 2.2x 1.9x 6.3x 6.0x

News Corporation 44,580.5 17.86 97.3% 3.3% 14.1% 1.3x 1.3x 7.0x 6.8x

Time Warner Inc. 34,750.7 34.72 89.9% 8.9% 7.2% 1.7x 1.7x 7.1x 7.1x

Viacom, Inc. 23,640.2 42.81 81.3% 12.2% 16.6% 2.0x 2.0x 7.3x 7.2x

CBS Corporation 17,165.2 26.23 88.4% 2.9% 30.5% 1.5x 1.5x 7.3x 7.1x

Liberty Interactive, Inc. 9,687.1 16.10 86.4% 8.1% 1.9% 1.4x 1.3x 7.4x 7.1x

Scripps Networks Interactive, Inc. 6,596.3 41.37 77.1% 2.1% 9.0% 3.2x 3.4x 7.4x 7.1x

Gannett Co., Inc. 3,100.1 13.01 68.7% (3.7%) (10.3%) 0.9x 0.9x 4.0x 4.0x

Meredith Corporation 1,384.5 30.79 82.1% (4.4%) (12.9%) 1.2x 1.2x 6.3x 6.8x

The New York Times Company 1,147.1 7.78 66.4% (2.4%) (5.1%) 0.7x 0.7x 4.4x 4.4x

Median 17,165.2$ 83.1% 3.3% 9.0% 1.5x 1.5x 7.1x 7.1x

Total Internet & Digital Media Median 3,038.3$ 68.6% 22.9% 18.2% 2.7x 2.3x 9.9x 8.0x

Public Market Trading Statistics Internet & Digital Media


Comparable

Trading

Summary

(continued)




11




11/08/11 Pending Kobo, Inc. Rakuten, Inc. 315.0 NA NA

10/12/11 Pending Cdnetworks Co Ltd KDDI Corp. 195.3 2.0x NA

09/26/11 Pending QianJun, Inc. Renren Inc. 80.0 NA NA

09/23/11 11/25/11 Group NBT plc HgCapital 211.6 2.8x 13.6x

08/22/11 08/24/11 Multifamily Technology Solutions, Inc. RealPage, Inc. 74.4 4.4x NA


08/03/11 10/27/11 Network Solutions, LLC Web.com Group, Inc. 793.7 NA 8.8x

08/01/11 08/31/11 Smilebox, Inc. IncrediMail, Ltd. (nka:Perion Network Ltd) 40.0 NA NA

07/19/11 11/10/11 Insider Guides, Inc. Quepasa Corp. 100.0 3.7x 19.6x

07/19/11 08/04/11 Vovici Corporation Verint Systems Inc. 75.4 NA NA

07/14/11 08/01/11 Prospectiv Direct, Inc. Affinion Group, Inc. 76.8 NA NA

07/07/11 08/11/11 Zong, Inc. PayPal, Inc. 240.0 NA NA

06/30/11 07/15/11 EchoSign, Inc. Adobe Systems Inc. 80.0 NA NA

06/27/11 Pending Kidspot Pty Ltd News Limited 47.5 NA NA

06/21/11 06/21/11 Helium, Inc. R.R. Donnelley & Sons Company 74.3 NA NA

06/14/11 07/29/11 Prosodie SA Cap Gemini S.A. 552.8 2.2x 11.9x

06/07/11 06/07/11 Scoreloop AG Research In Motion Limited 71.0 NA NA

Median 80.0$ 2.8x 12.7x

Recent M&A

Activity

Comparable Transactions Internet & Digital Media

Summary

Statistics




4.5x

3.0x

2.1x

4.0x

2.7x

3.2x

3.5x

2.5x 2.6x

3.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

0

25

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75

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125

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12

Comparable

Trading

Summary

Public Market Trading Statistics IT and Tech-Enabled Services

Stock

Performance


80%

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140%D

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Nasdaq IT and Tech-Enabled Services

85%

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11

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Nasdaq IT and Tech-Enabled Services





IT Services

Accenture plc 37,922.7$ 59.17$ 92.9% 20.3% 19.9% 1.2x 1.2x 8.0x 7.9x

Cap Gemini S.A. 5,654.2 36.75 63.0% NA NA 0.4x NA 4.8x NA

Atos S.A. 3,369.9 48.38 81.6% NA NA 0.5x NA 4.3x NA

Logica PLC 2,008.8 1.26 53.5% NA NA 0.4x NA 5.0x NA

Sapient Corporation 1,683.1 12.04 74.1% 24.8% 42.3% 1.5x 1.5x 12.8x 11.5x

Tieto Oyj 1,077.8 15.08 70.1% NA NA 0.5x NA 5.0x NA

Unisys Corporation 1,075.6 24.82 60.1% (1.7%) NA 0.3x 0.3x 2.7x 2.0x

Median 2,008.8$ 70.1% 20.3% 31.1% 0.5x 1.2x 5.0x 7.9x

Government IT & BPO

SAIC, Inc. 4,143.1$ 12.15$ 68.8% (3.8%) (9.9%) 0.4x 0.4x 6.0x 4.9x

CACI International Inc. 1,495.7 56.60 85.1% 12.7% 24.9% 0.5x 0.5x 6.1x 6.1x

MAXIMUS, Inc. 1,418.3 42.23 98.7% 13.5% 16.1% 1.3x 1.3x 9.0x 8.4x

ManTech International Corporation 1,222.7 33.22 71.8% 10.7% 13.5% 0.4x 0.4x 4.6x 4.5x

Tyler Technologies, Inc. 928.9 31.26 94.9% 6.4% 6.0% 3.3x 3.2x 18.3x 16.7x

Median 1,418.3$ 85.1% 10.7% 13.5% 0.5x 0.5x 6.1x 6.1x

Onshore BPOs

Alliance Data Systems Corporation 5,150.2$ 103.07$ 96.0% 14.1% 22.4% 3.8x 3.7x 13.0x 11.7x

CGI Group, Inc. 4,941.9 18.86 78.7% 8.6% 5.3% 1.4x 1.4x 7.6x 7.4x

Computer Sciences Corporation 3,929.2 25.34 44.8% (0.7%) (18.1%) 0.4x 0.4x 3.3x 3.2x

DST Systems Inc. 2,128.7 48.27 81.2% 11.3% (9.5%) 0.8x 1.0x 4.7x 4.3x

Convergys Corporation 1,492.4 12.42 82.8% 2.6% 5.0% 0.5x 0.5x 4.6x 4.3x

Median 3,929.2$ 81.2% 8.6% 5.0% 0.8x 1.0x 4.7x 4.3x

Offshore BPOs

Tata Consultancy Services Ltd. 44,937.0$ 22.96$ 94.6% NA NA 5.0x NA 17.0x NA

Infosys Technologies Ltd. 30,028.7 52.56 77.3% NA NA 4.0x NA 12.7x NA

Cognizant Technology Solutions 21,114.9 69.89 83.7% 33.7% 30.7% 3.3x 3.1x 15.8x 15.0x

Wipro Ltd. 18,582.3 7.61 78.7% 18.4% 9.6% 2.6x 2.6x 13.1x 12.8x

HCL Technologies Ltd. 5,484.8 7.94 77.2% NA NA 1.6x NA 10.6x NA

Genpact Ltd. 3,408.0 15.35 84.5% 26.7% 21.8% 2.3x 2.1x 11.5x 11.6x

Syntel, Inc. 2,030.9 48.56 78.3% 19.8% 1.0% 2.8x 2.7x 12.0x 12.1x

Satyam Computer Services Ltd. 1,583.9 1.35 73.4% NA NA 0.9x NA 7.2x NA

Patni Computer Systems Ltd. 1,183.9 8.82 89.7% 10.7% (18.3%) 1.1x 1.2x 7.0x 8.4x

Exlservice Holdings, Inc. 767.9 24.65 91.3% 44.5% 53.9% 2.1x 1.9x 11.8x 10.9x

Median 4,446.4$ 81.2% 23.3% 15.7% 2.4x 2.3x 11.9x 11.9x

Total IT Services Median 2,128.7$ 78.7% 12.7% 11.6% 1.2x 1.3x 7.6x 8.4x

13



11/24/11 Pending Nexbis Limited, Substantially All Assets Agathis Capital L.P. 76.8$ 20.5 x NA

11/12/11 Pending Point International AB VeriFone Systems, Inc 1,049.7 5.5 x NA

11/02/11 Pending mindSHIFT Technologies, Inc. Best Buy Co. Inc. 167.0 NA NA

11/01/11 Pending INX Inc. Presidio, Inc. 148.1 0.4 x 41.6 x

10/26/11 11/16/11 Worldwide Information Network Systems, Inc. ManTech's Mission, Technology Solutions Group 90.0 NA NA

10/20/11 Pending Tellhow Software Co.,Ltd. Tellhow Sci-Tech Co. Ltd 56.7 NA NA

09/30/11 09/30/11 EDM Group Limited EDM Group Limited 81.5 NA NA

09/05/11 Pending Paracon Holdings Ltd. Adcorp Holdings Ltd. 87.0 0.6 x 7.3 x

08/31/11 09/14/11 Qbranch AB Imtech NV 81.6 1.3 x NA

08/16/11 09/30/11 Vangent, Inc. General Dynamics Information Technology, Inc. 1,299.1 1.8 x 14.9 x

08/14/11 08/14/11 Wireless Logic Ltd. ECI Partners LLP 62.3 NA NA

08/10/11 Pending Quintec S.A. Sonda S.A. 123.6 0.6 x 6.2 x

08/05/11 08/05/11 Data Electronics Group Limited Telecity Group plc 143.0 6.7 x 13.9 x

07/05/11 07/05/11 AIVE SpA Cap Gemini S.A. 62.0 NA NA


06/13/11 Pending Cambridge Solutions, Ltd. Xchanging Technology Services India Private Ltd. 71.7 2.6 x NA

06/10/11 07/11/11 Web Money Corp. KDDI Corp. 172.3 0.2 x 11.5 x

Median 90.0$ 1.8x 12.7x

Recent M&A

Activity

Comparable Transactions IT and Tech-Enabled Services

Summary

Statistics




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Public Market Trading Statistics Software – Application

Stock

Performance


Comparable

Trading

Summary

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Nasdaq Application Software




Enterprise Software 3,183.3$ -$ 0.9$ 0.2$ 0.2$ 3.1$ 3.3$ 10.5$ 11.2$

Oracle Corporation 159,106.7$ 31.54$ 86.4% 16.3% 23.9% 3.9x 3.8x 9.3x 8.2x

SAP AG 69,545.1 58.45 94.7% 15.1% 26.8% 3.7x 3.6x 10.0x 10.1x

Salesforce.com 16,672.2 122.59 76.6% 36.7% 35.5% 7.6x 7.0x NM 41.7x

Adobe Systems Inc. 13,676.4 27.86 77.4% 9.8% 12.8% 3.1x 3.0x 8.8x 7.2x

Sage Group plc 5,957.5 4.53 94.6% NA NA 2.9x NA 10.5x NA

Informatica Corporation 4,597.4 43.23 69.3% 23.0% 38.0% 5.4x 5.2x 21.7x 18.3x

Open Text Corporation 3,188.4 55.12 76.2% 24.4% 20.3% 3.1x 3.0x 11.2x 9.8x

Ariba Inc. 3,138.0 33.49 90.2% 32.2% 21.4% 6.5x 6.0x NM 29.5x

NetSuite Inc. 3,178.2 46.82 98.3% 22.7% 25.6% 13.6x 13.0x NM NM

JDA Software Group Inc. 1,401.2 32.93 94.0% 9.6% 13.2% 2.1x 2.0x 8.1x 7.6x

MicroStrategy Inc. 1,322.9 122.93 68.8% 29.9% (36.5%) 2.1x 2.0x 33.5x 31.3x

Manhattan Associates, Inc. 950.1 45.92 98.5% 10.0% 31.4% 2.7x 2.6x 14.2x 11.6x

Deltek, Inc 578.8 8.88 99.4% 26.5% 27.5% 2.1x 2.0x 18.4x 11.2x

Exact Holding NV 558.4 24.47 76.3% NA NA 1.5x NA 6.9x NA

Median 3,183.3$ 88.3% 22.8% 24.7% 3.1x 3.3x 10.5x 11.2x

Product Lifecycle Management/Engineering

Dassault Systemes SA 9,682.4$ 82.02$ 95.9% NA NA 3.6x NA 11.2x NA

Autodesk, Inc. 7,892.6 34.80 75.4% 13.8% 23.3% 3.0x 2.9x 14.2x 10.6x

Ansys, Inc. 5,662.0 61.29 98.8% 20.7% 17.7% 8.2x 7.8x 16.7x 14.4x

Synopsys Inc. 3,975.4 27.74 94.5% 12.2% 19.7% 1.9x 1.9x 8.7x 6.5x

Cadence Design Systems Inc. 2,973.9 10.92 93.2% 23.5% 84.9% 2.6x 2.5x 17.1x 10.0x

Parametric Technology Corporation 2,425.7 20.76 82.1% 16.2% 39.1% 2.1x 2.0x 13.0x 9.2x

Aspen Technology, Inc. 1,703.5 18.14 96.8% 23.3% NA 7.8x 7.7x NM NM

Aveva Group plc 1,634.5 24.09 85.3% NA NA 4.9x NA 16.3x NA

Mentor Graphics Corporation 1,401.7 12.81 77.4% 12.3% 28.3% 1.5x 1.5x 9.2x 7.8x

Median 2,973.9$ 93.2% 16.2% 25.8% 3.0x 2.5x 13.6x 9.6x

Customer Engagement/Call Center Management

Nuance Communications, Inc. 7,359.6$ 24.47$ 90.7% 16.8% 13.8% 5.9x 5.4x 28.9x 13.5x

Amdocs Limited 4,828.6 28.03 87.6% 6.2% (1.5%) 1.2x 1.2x 6.7x 5.9x

NICE Systems Ltd. 2,149.0 33.82 91.1% 15.7% 35.8% 2.0x 1.9x 12.0x 7.6x

Comverse Technology Inc. 1,301.9 6.34 79.3% 5.3% NM 0.9x 1.0x 10.7x 7.2x

Verint Systems Inc. 1,079.5 27.78 72.9% 8.5% (8.3%) 2.4x 2.4x 14.7x 9.9x

LivePerson Inc. 694.5 13.04 87.2% 21.0% 26.0% 4.9x 4.6x 23.8x 18.2x

Median 1,725.5$ 87.4% 12.1% 13.8% 2.2x 2.1x 13.3x 8.8x

15

Comparable

Trading

Summary

(continued)





Human Capital Management

Concur Technologies, Inc. 2,854.3$ 52.77$ 90.7% 20.7% 14.0% 7.1x 6.8x 54.2x 25.2x

The Ultimate Software Group, Inc. 1,783.8 68.53 95.2% 17.7% 24.5% 6.8x 6.5x 73.6x 40.0x

Taleo Corporation 1,632.5 39.34 95.4% 33.4% 52.7% 5.1x 4.8x 45.3x 20.2x

Cornerstone OnDemand, Inc. 862.7 17.80 75.7% NA NA 12.7x 10.5x NM NM

Median 1,708.1$ 93.0% 20.7% 24.5% 6.9x 6.6x 54.2x 25.2x

Vertically Focused - Public Sector

Blackbaud Inc. 1,291.0$ 29.80$ 98.1% 14.8% 12.9% 3.4x 3.3x 17.6x 13.9x

Higher One Inc. 1,038.0 18.51 84.3% 34.4% 32.3% 5.7x 5.3x 15.3x 13.8x

K12, Inc. 986.2 27.71 69.7% 38.0% 20.1% 1.5x 1.4x 14.5x 11.2x

Tyler Technologies, Inc. 917.3 30.87 93.7% 6.4% 6.0% 3.2x 3.1x 18.1x 16.5x

NIC Inc. 861.2 13.42 92.7% 13.1% 17.2% 4.5x 4.4x 18.6x 18.3x

Median 986.2$ 92.7% 14.8% 17.2% 3.4x 3.3x 17.6x 13.9x

Vertically Focused - Healthcare IT

Cerner Corporation 10,205.0$ 60.24$ 81.0% 16.9% 23.8% 4.4x 4.3x 16.6x 13.5x

Allscripts Healthcare Solutions, Inc. 3,579.1 18.88 81.6% 15.4% 39.3% 2.8x 2.7x 15.7x 9.9x

HMS Holdings Corp. 2,632.4 30.95 96.7% 21.6% 25.5% 7.1x 6.8x 24.7x 22.6x

Quality Systems Inc. 2,148.6 36.51 72.0% 25.1% 38.9% 5.1x 4.9x 16.4x 14.7x

athenahealth, Inc. 2,140.5 60.59 83.3% 32.6% 53.7% 6.7x 6.2x 39.1x 30.6x

MedAssets, Inc. 563.8 9.64 45.0% 42.2% 46.1% 2.7x 2.5x 10.2x 7.8x

Computer Programs & Systems Inc. 513.0 46.37 58.7% 17.2% 52.2% 2.8x 2.8x 11.3x 11.1x

Median 2,148.6$ 81.0% 21.6% 39.3% 4.4x 4.3x 16.4x 13.5x

Total Application Software Median 2,144.6$ 87.4% 17.7% 25.5% 3.5x 3.5x 15.3x 11.6x

Public Market Trading Statistics Software – Application

16

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12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0x NA

11/30/11 Pending Magma Design Automation Inc. Synopsys Inc. 498.6 NA NA

11/07/11 Pending HealthDataInsights, Inc. HMS Holdings Corp. 400.0 NA NA

10/21/11 Pending Alterian plc SDL plc 103.8 1.8x 81.6x

10/18/11 10/18/11 Pallas Athena B.V. Perceptive Software, Inc. 40.9 NA NA

10/12/11 Pending Genesys Telecommunications Laboratories, Inc. Permira Advisers; Technology Crossover Ventures 1,500.0 3.0x NA

10/04/11 Pending Gluster, Inc. Red Hat, Inc. 140.0 NA NA

09/28/11 10/28/11 Triple Point Technology, Inc. Welsh, Carson, Anderson & Stowe 500.0 NA NA

09/23/11 10/02/11 GMT Corporation Verint Systems Inc. 42.0 NA NA

09/23/11 09/23/11 eFront SA Francisco Partners Management LLC 57.2 1.5x 12.8x

09/22/11 11/10/11 Sage Software Healthcare, Inc. Vista Equity Partners 314.7 1.3x NA

09/14/11 11/30/11 Fundtech Ltd. BServ, Inc. 308.3 2.0x 15.5x

09/01/11 10/21/11 Algorithmics, Inc. OpenPages, Inc. 380.2 2.3x 34.9x

08/18/11 10/13/11 Autonomy Corp. plc Hewlett-Packard Company 10,300.6 11.1x 25.2x

08/13/11 09/30/11 Loquendo S.p.A. Nuance Communications, Inc. 75.5 NA NA

08/04/11 Pending SunGard Higher Education, Inc. Datatel, Inc. 1,775.0 NA NA

08/03/11 11/02/11 Emdeon Inc. The Blackstone Group; Hellman & Friedman 3,306.3 3.1x 13.1x

08/02/11 09/12/11 Carnegie Learning, Inc. Apollo Group Inc. 75.0 NA NA

07/26/11 08/10/11 Seismic Micro-Technology, Inc. IHS Inc. 500.0 8.4x 20.1x

07/13/11 07/13/11 Global 360, Inc. Open Text Corp. 258.7 2.9x NA

07/11/11 08/18/11 Multimodal Technologies, Inc. MedQuist Holdings Inc. 124.9 6.2x 18.3x

07/10/11 08/09/11 Vetstreet Vicar Operating, Inc. 146.0 NA NA

06/30/11 10/04/11 Blackboard Inc. Providence Equity Partners LLC 1,767.1 3.7x 22.3x

06/28/11 07/15/11 Medical Present Value, Inc. Experian plc 185.0 8.3x NA

06/26/11 Pending Fundtech Ltd. S1 Corporation 231.5 1.6x 11.0x

06/22/11 07/26/11 Portico Systems, Inc. McKesson Health Solutions LLC 90.0 NA NA

06/16/11 06/16/11 SVOX AG Nuance Communications, Inc. 123.1 NA NA

06/14/11 Pending Telcordia Technologies, Inc. LM Ericsson Telephone Co. 1,150.0 1.6x NA

06/13/11 06/17/11 Health Risk Partners LLC Verisk Analytics, Inc. 59.4 NA NA

06/09/11 06/09/11 Fundamo Limited Visa, Inc. 110.0 NA NA

06/07/11 07/19/11 Mamut ASA Visma ASA 161.8 1.7x 13.6x

Median 245.1$ 2.9x 18.3x

Recent M&A

Activity

Comparable Transactions Software – Application

Summary

Statistics




17

Comparable

Trading

Summary

Public Market Trading Statistics Software – Infrastructure

Stock

Performance





Enterprise IT Management

Microsoft Corporation 215,856.6$ 25.66$ 87.1% 9.6% 5.3% 2.3x 2.3x 5.5x 5.5x

Hewlett-Packard Company 55,992.7 28.18 57.1% (1.7%) (11.9%) 0.6x 0.6x 4.8x 4.9x

VMware, Inc. 40,942.9 96.98 87.0% 33.0% 43.6% 10.6x 10.0x 43.1x 25.7x

Citrix Systems, Inc. 13,657.2 73.23 82.8% 19.1% 18.7% 5.7x 5.5x 21.9x 17.3x

CA Technologies 10,598.1 21.48 83.6% 5.7% 8.9% 2.1x 2.0x 5.8x 5.4x

Red Hat, Inc. 9,748.0 50.55 94.6% 26.8% 29.3% 8.2x 7.8x 37.4x 27.1x

BMC Software Inc. 5,994.4 35.22 62.3% 9.8% 19.6% 2.2x 2.2x 6.8x 5.0x

TIBCO Software Inc. 4,580.3 28.41 90.3% 23.0% 30.3% 5.0x 4.8x 22.5x 16.3x

Compuware Corporation 1,889.1 8.65 70.6% 10.5% 2.6% 2.0x 1.9x 9.7x 9.7x

Quest Software Inc. 1,603.5 19.30 67.8% 12.1% 3.3% 1.6x 1.6x 10.4x 6.1x

Progress Software Corporation 1,362.4 21.28 67.6% 0.9% (6.3%) 1.8x 1.8x 6.8x 6.3x

Pegasystems Inc. 1,158.9 30.75 64.7% 14.5% (59.5%) 2.7x 2.6x 47.6x 38.9x

Median 7,871.2$ 76.7% 11.3% 7.1% 2.3x 2.2x 10.0x 8.0x

Security

Symantec Corporation 11,934.7$ 16.19$ 79.0% 11.4% 9.9% 1.8x 1.8x 6.6x 5.3x

Check Point Software Technologies Ltd. 11,261.7 54.25 88.1% 14.9% 16.7% 7.0x 6.8x 12.8x 11.3x

VeriSign, Inc. 5,338.3 33.56 88.9% 4.3% 18.2% 6.3x 6.1x 12.5x 10.8x

Trend Micro Inc. 4,076.1 30.99 83.5% NA NA 2.0x NA 5.7x NA

Fortinet Inc. 3,784.4 24.57 86.0% 35.0% 69.6% 8.1x 7.7x 37.2x 29.8x

Sourcefire, Inc. 938.4 32.69 92.7% 21.9% 4.1% 5.3x 5.0x 61.9x 29.7x

Websense, Inc. 695.7 17.92 64.1% 9.1% (11.7%) 1.9x 1.9x 10.2x 7.3x

Median 4,076.1$ 86.0% 13.1% 13.3% 5.3x 5.5x 12.5x 11.1x

Enterprise Storage

EMC Corporation 48,102.2$ 23.58$ 82.1% 17.7% 10.9% 2.2x 2.2x 9.7x 8.2x

NetApp, Inc. 13,734.7 37.28 61.1% 24.1% 25.8% 1.8x 1.7x 10.2x 7.8x

Teradata Corporation 8,806.9 52.61 83.9% 21.6% 28.0% 3.8x 3.6x 16.7x 13.8x

Brocade Communications Systems, Inc. 2,723.0 5.55 76.0% 2.3% 9.0% 1.4x 1.4x 8.1x 5.7x

Fusion-io, Inc. 2,521.0 29.22 70.0% NA NA 9.5x 9.0x 87.1x 81.0x

CommVault Systems, Inc. 2,137.8 49.12 96.5% 29.3% 36.1% 5.3x 5.1x 38.2x 26.6x

Median 5,765.0$ 79.1% 21.6% 25.8% 3.0x 2.9x 13.5x 11.0x

Total Infrastructure Software Median 5,338.3$ 82.8% 14.5% 10.9% 2.3x 2.4x 10.4x 10.2x

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18



11/14/11 11/14/11 Mobile Interactive Group Limited Velti Plc 59.0$ 3.0 x NA

11/06/11 Pending iLoop Mobile, Inc. Lenco Mobile Inc. 42.0 NA NA

10/26/11 Pending App-DNA Limited Citrix Systems, Inc. 92.0 NA NA

10/07/11 10/18/11 Mobile Complete, Inc. Keynote Systems Inc. 90.0 4.5 x NA

10/06/11 10/06/11 Swype Inc. Nuance Communications, Inc. 102.5 NA NA

10/06/11 10/06/11 NewBay Software Limited Research In Motion Limited 100.0 NA NA

09/29/11 09/29/11 Adapt Services Limited Lyceum Capital Partners LLP 47.0 NA NA

09/29/11 09/29/11 AEP Networks, Inc. Ultra Electronics Holdings plc 75.0 NA NA

09/29/11 Pending Telmap, Ltd. Intel Corporation 300.0 NA NA


07/21/11 Pending iGware Inc. Acer Inc. 395.0 NA NA

07/19/11 07/19/11 Zeus Technology Limited Riverbed Technology, Inc. 140.0 NA NA

07/11/11 08/22/11 Radiant Systems Inc. NCR Corp. 1,139.1 3.1 x 20.7 x

07/01/11 07/01/11 dynaTrace software GmbH Compuware Corporation 231.4 8.9 x NA

06/29/11 08/16/11 Interactive TKO, Inc. CA Technologies 330.0 8.5 x NA

06/16/11 08/17/11 Bridgewater Systems Corporation Amdocs Ltd. 131.5 1.5 x 4.5 x

Median 108.8$ 3.8 x 12.6 x

Recent M&A

Activity

Comparable Transactions Software – Infrastructure

Summary

Statistics




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19

Public Market Trading Statistics Software – SaaS

Comparable

Trading

Summary

Stock

Performance


( $ in millions) Stock Price CY 2011P Multiples Summary LTM



SaaS

Salesforce.com 16,672.2$ 122.59$ 76.6% 36.7% 35.5% 7.6x 7.0x NM 41.7x

NetSuite Inc. 3,178.2 46.82 98.3% 22.7% 25.6% 13.6x 13.0x NM NM

Concur Technologies, Inc. 2,854.3 52.77 90.7% 20.7% 14.0% 7.1x 6.8x 54.2x 25.2x

Qlik Technologies, Inc. 2,483.4 29.70 83.4% 49.0% 19.0% 7.9x 7.2x NM 60.7x

athenahealth, Inc. 2,140.5 60.59 83.3% 32.6% 53.7% 6.7x 6.2x 39.1x 30.6x

The Ultimate Software Group, Inc. 1,783.8 68.53 95.2% 17.7% 24.5% 6.8x 6.5x 73.6x 40.0x

Taleo Corporation 1,632.5 39.34 95.4% 33.4% 52.7% 5.1x 4.8x 45.3x 20.2x

Blackbaud Inc. 1,291.0 29.80 98.1% 14.8% 12.9% 3.4x 3.3x 17.6x 13.9x

DealerTrack Holdings, Inc. 1,112.2 26.81 99.4% 42.7% 78.5% 3.2x 3.0x 19.4x 14.3x

Financial Engines, Inc. 988.8 21.73 74.9% 28.7% 75.0% 6.3x 5.9x 37.5x 22.6x

OpenTable, Inc. 897.1 37.77 31.8% 40.8% 52.3% 6.1x 5.9x 21.9x 15.7x

Cornerstone OnDemand, Inc. 862.7 17.80 75.7% NA NA 12.7x 10.5x NM NM

Ebix Inc. 786.9 21.27 70.1% 28.5% NA 5.0x 4.7x 11.4x NA

Constant Contact, Inc. 706.9 23.77 65.4% 22.9% 55.5% 2.8x 2.7x 31.6x 16.4x

LivePerson Inc. 694.5 13.04 87.2% 21.0% 26.0% 4.9x 4.6x 23.8x 18.2x

Websense, Inc. 698.4 17.99 64.3% 9.1% (11.7%) 1.9x 1.9x 10.2x 7.3x

MedAssets, Inc. 563.8 9.64 45.0% 42.2% 46.1% 2.7x 2.5x 10.2x 7.8x

Total SaaS Median 1,112.2$ 83.3% 28.6% 35.5% 6.1x 5.9x 23.8x 19.2x

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20




12/02/11 Pending SuccessFactors, Inc. SAP America, Inc. 3,516.0 12.0 x NA

11/14/11 Pending Model Metrics, Inc. Salesforce.com 57.6 NA NA

10/23/11 Pending Rightnow Technologies Inc. Oracle Corporation 1,521.4 7.0 x 63.8 x

09/14/11 11/30/11 Fundtech Ltd. BServ, Inc. 308.3 2.0 x 15.5 x

07/01/11 07/01/11 dynaTrace software GmbH Compuware Corporation 231.4 8.9 x NA

06/30/11 10/04/11 Blackboard Inc. Providence Equity Partners 1,767.1 3.7 x 22.3 x

06/26/11 Pending Fundtech Ltd. S1 Corporation 231.5 1.6 x 11.0 x

Median 365.3$ 4.8x 18.9x

Recent M&A

Activity

Comparable Transactions Software – SaaS

Summary

Statistics




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21

Comparable

Trading

Summary

Public Market Trading Statistics Tech Hardware

Stock

Performance





Semiconductor Devices

Intel Corporation 129,082.2$ 25.35$ 99.4% 25.3% 16.9% 2.3x 2.2x 5.2x 5.0x

Texas Instruments Inc. 34,759.4 30.42 82.9% (1.6%) (20.0%) 2.7x 2.7x 7.8x 8.9x

Broadcom Corporation 16,223.9 30.10 63.5% 8.2% (4.0%) 1.7x 1.7x 11.4x 7.4x

Analog Devices Inc. 10,687.9 35.87 82.9% 1.4% (0.2%) 2.7x 2.7x 6.7x 7.1x

Marvell Technology Group Ltd. 8,227.4 14.10 64.1% (5.4%) (26.9%) 1.6x 1.7x 6.5x 6.8x

Maxim Integrated Products Inc. 7,570.0 25.95 91.2% 6.9% 2.5% 2.9x 2.9x 8.0x 8.5x

Micron Technology Inc. 5,579.8 5.65 47.3% (4.5%) (30.3%) 0.7x 0.7x 2.3x 2.4x

Advanced Micro Devices Inc. 3,944.6 5.66 59.1% 2.2% (19.8%) 0.6x 0.6x 4.8x 4.6x

Freescale Semiconductor Holdings I, Ltd. 3,255.8 13.26 63.2% NA NA 1.9x 2.0x 8.0x 9.3x

LSI Corporation 3,251.3 5.77 74.5% (20.0%) (3.9%) 0.9x 1.2x 6.5x 6.4x

Cypress Semiconductor Corporation 2,970.3 19.18 80.1% 12.2% 38.5% 2.9x 2.8x 15.6x 9.8x

Cree Inc. 2,963.1 25.68 35.3% (0.2%) (33.5%) 2.4x 2.2x 10.1x 8.8x

Fairchild Semiconductor International Inc. 1,692.8 13.39 63.7% 0.5% (4.3%) 0.9x 0.9x 4.2x 4.3x

Microsemi Corporation 1,592.0 18.33 73.4% 51.5% 73.6% 2.0x 1.9x 8.1x 5.9x

Semtech Corporation 1,585.5 23.92 81.2% 6.6% 9.9% 2.6x 2.6x 9.3x 8.9x

PMC-Sierra Inc. 1,266.7 5.48 59.6% 4.1% 1.8% 1.3x 1.3x 5.7x 4.2x

MEMC Electronic Materials Inc. 951.8 4.13 27.5% 56.7% 21.8% 0.7x 0.6x 7.5x 6.6x

Median 3,255.8$ 64.1% 3.2% (2.0% ) 1.9x 1.9x 7.5x 6.8x

Semiconductor Equipment

Applied Materials Inc. 14,479.5$ 11.09$ 65.5% (4.9%) (15.8%) 0.9x 0.9x 3.6x 4.2x

KLA-Tencor Corporation 8,191.5 49.15 94.8% 29.1% 36.7% 2.1x 2.2x 5.4x 5.7x

Lam Research Corporation 5,123.9 42.86 72.5% (5.1%) (30.4%) 1.2x 1.3x 4.9x 6.5x

Teradyne Inc. 2,505.0 13.61 70.9% (11.6%) (28.9%) 1.0x 1.0x 3.5x 3.8x

Novellus Systems, Inc. 2,466.5 37.04 88.6% 0.3% (9.5%) 1.4x 1.5x 5.5x 6.3x

MKS Instruments Inc. 1,452.7 27.70 81.8% (6.6%) (13.1%) 1.1x 1.1x 4.3x 4.9x

Cabot Microelectronics Corporation 942.6 41.77 79.3% 5.2% 4.4% 1.4x 1.4x 6.0x 6.1x

Tessera Technologies Inc. 881.7 17.11 73.8% (14.3%) (45.9%) 1.2x 1.4x 2.8x 6.2x

Amkor Technology, Inc. 846.0 4.67 55.0% (5.1%) (25.7%) 0.6x 0.6x 2.9x 3.2x

ATMI Inc. 661.5 20.88 97.2% 6.7% (0.0%) 1.1x 1.2x 6.1x 6.3x

Brooks Automation Inc. 654.6 10.12 69.4% (5.8%) 12.6% 0.6x 0.7x 4.2x 4.4x

Median 1,452.7$ 73.8% (5.1% ) (13.1% ) 1.1x 1.2x 4.3x 5.7x

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Comparable

Trading

Summary

(continued)

Public Market Trading Statistics Tech Hardware




Electronic Manufacturing

Jabil Circuit Inc. 4,342.9$ 20.86$ 90.3% 17.9% 26.3% 0.3x 0.3x 5.0x 4.5x

Flextronics International Ltd. 4,264.9 5.98 70.4% 8.7% (0.5%) 0.2x 0.2x 4.2x 4.0x

Molex Inc. 4,345.7 24.72 86.7% 7.2% 7.9% 1.1x 1.1x 5.9x 6.0x

Celestica Inc. 1,698.7 7.99 66.0% 12.7% 12.1% 0.2x 0.2x 4.1x 3.4x

Plexus Corporation 934.4 26.99 69.7% 1.8% (4.4%) 0.4x 0.4x 6.7x 6.8x

TTM Technologies Inc. 919.1 11.30 57.5% 21.2% 24.1% 0.9x 0.9x 5.1x 5.1x

Benchmark Electronics Inc. 781.0 13.52 66.8% (8.1%) (39.6%) 0.2x 0.2x 4.9x 6.2x

Sanmina-SCI Corporation 718.9 8.90 51.4% 0.0% (4.4%) 0.2x 0.2x 3.9x 4.1x

Median 1,316.6$ 68.3% 7.9% 3.7% 0.3x 0.3x 4.9x 4.8x

PCs, Servers, and Computing Components

Apple Inc. 363,352.4$ 390.95$ 91.6% 61.7% 85.2% 2.6x 2.4x 7.9x 7.0x

IBM Corporation 227,402.6 192.94 99.7% 8.0% 10.2% 2.3x 2.2x 9.1x 9.2x

Samsung Electronics Co. Ltd. 120,607.1 926.69 96.7% NA NA 0.9x NA 5.3x NA

Hewlett-Packard Company 55,992.7 28.18 57.1% (1.7%) (11.9%) 0.6x 0.6x 4.8x 4.9x

Dell Inc. 28,492.6 15.86 90.1% 0.8% 25.2% 0.3x 0.3x 3.6x 3.5x

Xerox Corporation 11,353.4 8.33 69.0% 5.2% 5.0% 0.8x 0.8x 6.1x 5.9x

Lenovo Group Ltd. 7,306.0 0.71 91.1% NA NA 0.1x NA 5.6x NA

Pitney Bowes Inc. 3,793.1 19.00 72.1% (1.9%) (5.4%) 1.4x 1.4x 6.7x 6.5x

NCR Corporation 2,678.9 17.02 81.2% 12.2% 61.9% 0.7x 0.6x 13.0x 8.7x

Lexmark International Inc. 2,391.7 33.31 82.2% (1.0%) (1.8%) 0.4x 0.4x 2.7x 2.6x

Diebold, Inc. 1,894.2 30.24 81.5% 0.1% (8.3%) 0.7x 0.7x 9.0x 8.2x

ScanSource, Inc. 951.0 34.98 87.5% 20.7% 24.9% 0.4x 0.4x 7.9x 8.2x

Median 9,329.7$ 84.8% 3.0% 7.6% 0.7x 0.7x 6.4x 6.8x

Storage and Networking Components

SanDisk Corporation 12,103.7$ 50.37$ 94.0% 17.6% 7.9% 1.4x 1.4x 4.5x 4.2x

Western Digital Corporation 7,406.5 31.68 75.7% (6.6%) (43.4%) 0.4x 0.4x 2.7x 4.1x

QLogic Corporation 1,503.3 14.94 79.3% 2.4% (2.0%) 1.8x 1.8x 6.4x 5.8x

Emulex Corporation 658.2 7.70 59.4% 13.3% (28.7%) 1.0x 1.0x 22.1x 6.8x

Median 4,454.9$ 77.5% 7.8% (15.3% ) 1.2x 1.2x 5.4x 5.0x

Total Tech Hardware Median 3,110.8$ 74.2% 2.2% (1.8% ) 1.0x 1.1x 5.7x 6.1x


23

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12/05/11 12/05/11 Zu Industries Inc. ProLogic, Inc. 76.6$ NA NA

11/21/11 Pending Accu-Sort Systems, Inc. Datalogic SpA 135.0 1.5 x 7.6 x

11/18/11 11/18/11 Fairchild Industrial Products Company Rotork plc 75.8 3.6 x NA

10/27/11 Pending MOSAID Technologies Inc. Sterling Capital Partners 447.1 5.5 x 10.6 x

10/25/11 10/25/11 EM TEST AG Ametek Inc. 94.2 NA NA

10/10/11 Pending VTI Technologies Oy Murata Electronics Europe B.V. 265.8 2.6 x 16.3 x

10/05/11 Pending Beyonics Technology Ltd. Shaw Kwei & Partners 102.5 0.1 x 7.4 x

09/29/11 10/27/11 Sensortechnics GmbH First Sensor AG 91.4 NA NA

09/15/11 12/06/11 Visonic Group Tyco International Ltd. 79.4 1.0 x 35.1 x

09/14/11 10/05/11 LitePoint Corporation Teradyne Inc. 580.0 6.7 x NA

09/14/11 09/14/11 elero Gmbh Nice SpA 44.2 0.6 x NA

09/11/11 Pending NetLogic Microsystems Inc. Broadcom Corp. 3,441.5 8.5 x 35.5 x

08/24/11 08/24/11 Confluence Solar, Inc. GT Advanced Technologies Inc. 80.0 NA NA

08/19/11 09/07/11 Jiangsu Talesun Solar Co., Ltd. Zhongli Science And Technology Group Co., Ltd. 147.8 NA NA

08/17/11 Pending MOSAID Technologies Inc. Wi-Lan Inc. 385.9 4.9 x 9.3 x

08/15/11 10/03/11 OMEGA Engineering, Inc. Spectris plc 475.0 2.8 x NA

08/10/11 Pending Covalent Materials, Silicon Wafer Division Sino-American Silicon Products 431.4 0.8 x NA

08/08/11 09/20/11 Chip One Stop Inc. Arrow Electronics, Inc. 74.5 1.6 x 11.1 x

08/03/11 Pending Techmosa International Incorporation WT Microelectronics Co., Ltd. 100.9 0.3 x 12.0 x

08/01/11 Pending Elematec Corporation Toyota Tsusho Corp. 307.5 0.2 x 5.6 x

07/28/11 07/28/11 Martek Power, Inc. Cooper Bussmann, Inc. 186.0 1.4 x NA

07/25/11 07/25/11 CONTROP Precision Technologies Ltd. Aeronautics Defense Systems Ltd. 125.5 2.0 x NA

07/18/11 07/18/11 SensorDynamics AG Maxim Integrated Products Inc. 164.0 NA NA

07/08/11 09/06/11 GDC Technology Limited The Carlyle Group (nka:The Carlyle Group LP) 90.8 1.2 x NA

07/07/11 10/04/11 Ophir Optronics Ltd. Newport Corp. 247.3 2.2 x NA

07/07/11 Pending Alpha Crystal Technology Corporation Tera Xtal Technology Corporation 98.3 NA NA

07/06/11 Pending Spicers Limited Unipapel S.A. 268.8 0.4 x 5.5 x

07/06/11 11/18/11 S3 Graphics Co., Ltd. HTC Corporation 300.0 NA NA

07/05/11 07/05/11 Aegis Lightwave, Inc. II-VI Inc. 52.0 2.0 x NA

07/01/11 12/01/11 Silver Age Holdings Limited JA Solar Holdings Co., Ltd. 171.5 NA NA

06/29/11 Pending VisEra Technologies Company OmniVision Technologies Inc. 45.0 NA NA

06/27/11 Pending TCL Optoelectronics Technology Co., Ltd. TCL Multimedia Technology Holdings Ltd. 94.6 NA NA

06/22/11 08/16/11 ElektronikGruppen BK AB Kamic AB 47.4 0.3 x 6.5 x

06/16/11 07/14/11 TAOS Inc. Austriamicrosystems AG 329.9 4.1 x NA

06/14/11 08/01/11 DTW Sp. z o.o. SMA Solar Technology AG 48.5 0.5 x NA

06/14/11 06/14/11 Omicron NanoTechnology GmbH Oxford Instruments plc 46.9 0.9 x NA

06/10/11 08/22/11 Gerber Scientific Inc. Vector Capital; CITIC Capital Partners 286.9 0.6 x 17.8 x

06/07/11 07/26/11 exceet Group AG Helikos SE (nka:Exceet Group SE) 333.2 1.9 x 12.8 x

Median 130.2$ 1.5x 10.8x

Recent M&A

Activity

Comparable Transactions Tech Hardware

Summary

Statistics


Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.

Note: Includes announced transactions over the last five months where enterprise value is publicly available and more than $40 million.

24

Public Market Trading Statistics Telecom

Comparable

Trading

Summary

Stock

Performance





Network Optimization

F5 Networks, Inc. 9,086.6$ 114.32$ 78.4% 26.8% 32.0% 7.0x 6.7x 21.7x 17.1x

Akamai Technologies, Inc. 5,065.3 28.23 51.7% 12.1% 7.3% 3.5x 3.4x 9.0x 7.7x

Riverbed Technology, Inc. 4,145.2 26.74 59.8% 33.0% 70.3% 5.2x 4.9x 31.8x 15.5x

Aruba Networks, Inc. 2,312.2 21.61 59.4% 46.3% 141.6% 4.7x 4.4x 159.0x 19.0x

Ixia 818.1 11.73 61.4% 11.7% 36.8% 2.2x 2.1x 11.3x 8.9x

Blue Coat Systems Inc. 765.3 17.88 55.5% (8.1%) (29.6%) 1.0x 1.0x 7.2x 6.3x

NetScout Systems, Inc. 738.9 17.80 64.0% 3.7% 4.0% 2.1x 2.0x 9.1x 7.6x

Median 2,312.2$ 59.8% 12.1% 32.0% 3.5x 3.4x 11.3x 8.9x

Fiber Optics

Finisar Corporation 1,492.7$ 16.44$ 35.7% 6.2% (12.9%) 1.3x 1.4x 10.3x 9.1x

CIENA Corporation 1,114.2 11.50 39.3% 18.6% 298.6% 1.2x 1.1x NM 19.5x

Infinera Corporation 748.7 7.01 62.9% (13.7%) NM 1.1x 1.2x NM NM

Median 1,114.2$ 39.3% 6.2% 142.8% 1.2x 1.2x 10.3x 14.3x

Telecom/Networking Equipment

Cisco Systems, Inc. 100,689.9$ 18.73$ 83.8% 5.5% 3.8% 1.6x 1.6x 6.4x 5.4x

QUALCOMM Incorporated 92,168.4 54.83 91.6% 40.4% 48.1% 4.8x 4.5x 11.4x 9.6x

LM Ericsson Telephone Co. 33,496.5 10.44 72.6% 14.4% 10.2% 0.8x 0.7x 4.7x 4.9x

Nokia Corporation 20,324.0 5.48 48.0% (7.9%) (46.2%) 0.3x 0.3x 4.4x 5.0x

Juniper Networks, Inc. 11,950.9 22.72 50.5% 12.3% 6.0% 1.9x 1.9x 9.6x 7.7x

Research In Motion Limited 8,820.9 16.94 24.8% 8.4% (10.8%) 0.4x 0.4x 1.4x 1.6x

Amphenol Corporation 7,541.1 45.50 77.0% 10.8% 8.8% 2.0x 2.0x 9.1x 9.2x

Trimble Navigation Limited 5,440.5 44.12 84.4% 26.3% 35.1% 3.9x 3.6x 23.6x 19.1x

Harris Corporation 4,193.3 36.21 67.8% 7.3% (7.6%) 1.1x 1.0x 5.3x 5.3x

Alcatel-Lucent, S.A. 3,681.3 1.62 27.0% 0.5% 48.3% 0.2x 0.2x 2.6x 2.8x

Polycom, Inc. 2,988.3 16.87 49.2% 23.5% 34.1% 1.7x 1.6x 10.7x 9.0x

JDS Uniphase Corporation 2,399.0 10.47 36.0% 9.3% 27.9% 1.1x 1.2x 8.4x 7.3x

ADTRAN Inc. 2,073.3 32.57 68.3% 20.2% 27.2% 2.4x 2.3x 8.2x 8.1x

Tellabs Inc. 1,485.3 4.07 55.7% (22.1%) (88.7%) 0.3x 0.4x NM 12.8x

Netgear Inc. 1,377.4 36.67 80.9% 32.0% 28.1% 0.9x 0.9x 7.9x 7.4x

Median 5,440.5$ 67.8% 10.8% 10.2% 1.1x 1.2x 8.0x 7.4x

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25

Comparable

Trading

Summary

(continued)

Public Market Trading Statistics Telecom




Carriers and Content Providers

AT&T, Inc. 172,861.4$ 29.17$ 91.3% 1.4% (0.7%) 1.8x 1.8x 5.9x 5.4x

Verizon Communications Inc. 108,487.4 38.32 98.4% 4.9% 4.2% 1.8x 1.8x 4.8x 5.5x

Comcast Corporation 63,189.1 23.19 85.4% 49.8% 25.5% 2.2x 1.9x 6.3x 6.0x

DIRECTV, Inc. 33,303.5 47.20 88.4% 13.1% 10.9% 1.7x 1.6x 6.4x 6.3x

Time Warner Cable Inc. 20,001.9 62.68 77.5% 4.4% 3.9% 2.1x 2.0x 5.7x 5.6x

Dish Network Corporation 12,002.0 26.90 82.6% 11.2% 19.4% 1.1x 1.0x 4.1x 4.0x

Sprint Nextel Corporation 7,819.1 2.61 40.5% 4.0% (11.9%) 0.6x 0.6x 3.6x 4.1x

Level 3 Communications Inc. 4,182.1 20.14 50.3% 44.3% 39.3% 3.1x 2.2x 13.6x 9.9x

Cablevision Systems Corporation 4,155.4 14.87 39.0% (6.8%) (12.1%) 1.9x 2.2x 5.7x 6.5x

MetroPCS Communications, Inc. 3,260.3 9.00 47.9% 19.1% 10.0% 1.3x 1.2x 4.7x 4.6x

Telephone & Data Systems Inc. 2,754.2 26.64 70.3% 2.7% 7.1% 0.7x 0.7x 3.4x 3.3x

EarthLink Inc. 666.8 6.25 67.7% 116.4% 55.9% 0.9x 0.8x 3.7x 3.2x

Clearwire Corporation 624.3 2.50 33.9% 120.2% NM 6.2x 5.3x NM NM

Vonage Holdings Corporation 566.2 2.51 46.6% (1.5%) 4.7% 0.7x 0.7x 4.0x 3.8x

Median 6,000.6$ 69.0% 8.0% 7.1% 1.7x 1.7x 4.8x 5.4x

Infrastructure Services

American Tower Corporation 23,282.8$ 59.24$ 99.3% 23.5% 18.0% 12.4x 11.9x 20.6x 18.3x

Crown Castle International Corporation 12,381.3 43.52 94.1% 8.7% 12.0% 9.7x 9.6x 15.7x 15.1x

SBA Communications Corporation 4,536.2 41.48 93.3% 12.2% 15.0% 11.3x 11.0x 18.6x 17.5x

Median 12,381.3$ 94.1% 12.2% 15.0% 11.3x 11.0x 18.6x 17.5x

Managed Services

Rackspace Hosting, Inc 5,662.4$ 43.20$ 92.9% 31.8% 30.6% 5.9x 5.6x 20.9x 16.8x

Equinix, Inc. 4,858.6 102.48 95.8% 31.9% 34.8% 4.5x 4.2x 11.0x 9.4x

Interxion Holding NV 854.4 12.98 81.7% 18.5% 22.5% 3.0x 2.9x 7.7x 7.3x

Median 4,858.6$ 92.9% 31.8% 30.6% 4.5x 4.2x 11.0x 9.4x

Total Telecom Median 4,193.3$ 67.7% 12.1% 12.0% 1.8x 1.8x 7.9x 7.4x


26



11/21/11 11/30/11 TransACT Capital Communications Pty Ltd. iiNet Ltd. 59.0$ 0.8 x 3.5 x

11/06/11 Pending Tekelec Private Equity Consortia 507.1 1.3 x 11.4 x

10/18/11 Pending TeleCable de Asturias, S.A.U. The Carlyle Group 547.5 3.3 x NA

10/12/11 Pending Unitech Wireless Limited Unitech Ltd. 81.7 NA NA

10/10/11 11/21/11 BigBand Networks, Inc. Arris Group Inc. 41.9 0.5 x NA

10/10/11 10/10/11 Qumu, Inc. Rimage Corp. 51.8 5.0 x NA

10/06/11 12/02/11 360networks (USA), Inc. Zayo Group Inc. 345.0 4.5 x 13.2 x

10/05/11 10/05/11 Digitronics Inventioneering Corporation Red Lion Controls, Inc. 72.0 NA NA

09/29/11 10/12/11 Santur Corporation NeoPhotonics Corporation 45.9 NA NA

09/29/11 Pending Telefonia Dialog S.A. Netia SA 275.0 NA NA

09/27/11 09/27/11 Barrow Offshore Wind, Transmission Assets TC Barrow OFTO Ltd. 53.3 NA NA

09/03/11 Pending 1,800 Communications Sites American Tower Corp. 500.0 NA NA

08/15/11 Pending Motorola Mobility Holdings, Inc. Google Inc. 9,007.2 0.7 x 29.6 x

08/01/11 Pending Vizada SAS Astrium N.V. 960.0 NA NA

07/28/11 08/22/11 ITIS Holdings plc INRIX, Inc. 51.1 1.9 x 12.5 x

07/22/11 09/27/11 Network Norway AS Tele2 Sverige AB 268.0 0.9 x 77.3 x

07/15/11 Pending Colombia Movil S.A., Towers American Tower Corp. 182.0 NA NA

07/08/11 10/31/11 AES Communications Rio de Janeiro S.A. Tim Celular S.A. 302.2 NA NA

06/27/11 07/28/11 Outremer Telecom AXA Private Equity 371.2 1.4 x 5.3 x

06/16/11 07/22/11 Teltronic S.A. Unipersonal Private Equity Consortia 56.6 0.6 x NA

06/14/11 Pending Terrestar Networks, Inc. Dish Network Corp. 1,325.0 NA NA

06/13/11 11/02/11 Telecommunications Management Time Warner Cable Inc. 260.0 NA NA

06/12/11 08/19/11 EMS Technologies Inc. Honeywell International Inc. 494.0 1.4 x 12.7 x

06/08/11 08/08/11 B.net Hrvatska d.o.o. VIPnet d.o.o 135.5 3.3 x 11.3 x

Median 264.0$ 1.4x 12.5x

Recent M&A

Activity

Comparable Transactions Telecom

Summary

Statistics


Note: Includes announced transactions over the last six months where enterprise value is publicly available and more than $40 million.

Note: Includes closed transactions where enterprise value is publicly available and more than $40 million.

2.6x

1.9x2.1x 2.1x

2.0x

1.7x

2.1x 2.1x

1.5x 1.4x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

0

50

100

150

200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD

LT

M R

even

ue M

ultip

leTra

nsa

ctio

n V

olu

me


27

Selected HW&Co. TTDM Transactions

a subsidiary of

has been acquired by

a portfolio company of

has received a minority

private placement from



GFI Energy Group

a division of




has received a strategic

investment from




has acquired


has merged with


has received a minority

investment from





has acquired


has been recapitalized by



has received a strategic

investment from

28

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TTDM Group Overview

and Disclosures

Thierry Monjauze

Managing Director

63 Brook Street

London W1K 4HS

United Kingdom

Phone: +44 20 7518 8901 [email protected]

Jeff Bistrong

Managing Director

Two International Place, 24th Floor

Boston, MA 02110

USA

Phone: +1 (617) 654-2102 [email protected]

Our Technology, Telecom & Digital Media (TTDM) Group is dedicated to providing superior merger & acquisition

and capital markets advisory services to market leading companies. Our extensive industry knowledge and

transaction leadership experience spans the software, digital media, IT services and communications sectors. Our

professionals in Boston, London, and San Francisco have global relationships with leading technology companies

and financial investors. Thoughtful advice, deep experience and technology expertise, creativity and attention to

detail from our senior technology bankers have resulted in a track record of consistently exceeding our clients'

expectations.

1001 Haxall Point

9th Floor

Richmond, VA 23219

USA

Phone: +1 (804) 648-0072

Fax: +1 (804) 648-0073

Two International Place

24th Floor

Boston, MA 02110

USA

Phone: +1 (617) 482-7501

Fax: +1 (617) 482-7503

1900 East 9th Street

20th Floor

Cleveland, OH 44114

USA

Phone: +1 (216) 689-2400

Fax: +1 (216) 689-2401

63 Brook St

London, W1K 4HS

United Kingdom

Phone: +44 20 7518 8900

Fax: +44 20 7526 2187

222 South Ninth Street

Suite 3350

Minneapolis, MN 55402

USA

Phone: +1 (612) 359-2700

Fax: +1 (612) 359-2701

1600 Market Street

21st Floor

Philadelphia, PA 19103

USA

Phone: +1 (267) 675-5900

Fax: +1 (267) 675-5901

575 Market Street

31st Floor

San Francisco, CA 94105

USA

Phone: +1 (415) 288-4260

Fax: +1 (415) 288-4269

www.harriswilliams.com

Mike Wilkins

Managing Director

575 Market Street, 31st Floor

San Francisco, CA 94105

USA

Phone: +1 (415) 217-3411 [email protected]

29

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