Capstone Partners Investment Banking Advisors 2014 AWARD WINNER: Capstone Partners BOUTIQUE INVESTMENT BANKING Investment Banking Advisors FIRM OF THE YEAR

SaaS & Cloud M&A and Valuation Update

Q4 2014

BOSTON  CHICAGO  LONDON  LOS ANGELES  PHILADELPHIA  SAN DIEGO  SILICON VALLEY  TAMPA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 1 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.1 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners TableInvestment Bankingof Contents Advisors

Section Page Introduction  Research Coverage: SaaS & Cloud 4  Key Takeaways 5-6 M&A Activity & Multiples  M&A Dollar Volume 8  M&A Transaction Volume 9-11  LTM Revenue Multiples 12-13  Revenue Multiples by Segment 14  Highest Revenue Multiple Transactions for LTM 15  Notable M&A Transactions 16  Most Active Buyers 17-18 Public Company Valuation & Operating Metrics  SaaS & Cloud 130 Public Company Universe 20-21  Recent IPOs 22-27  Stock Price Performance 28  LTM Revenue, EBITDA & P/E Multiples 29-31  Revenue, EBITDA and EPS Growth 32-34  Margin Analysis 35-36  Best / Worst Performers 37-38 Notable Transaction Profiles 40-49 Public Company Trading & Operating Metrics 51-56 Technology & Telecom Team 58-60

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 2 Investment Banking Advisors 2 Capstone Partners Investment Banking AdvisorsCapstone Partners Investment Banking Advisors

Observations and Introduction Recommendations

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 3 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.3 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners ResearchInvestment Banking Coverage: Advisors SaaS & Cloud

 Capstone’s Technology & Telecom Group focuses its research efforts on the following market segments:

Enterprise SaaS & Mobile & Wireless Consumer Internet Cloud

 Analytics / Business Intelligence  Cloud & IT Infrastructure  Cloud Computing / Storage  Communication & Collaboration  Content Creation & Management  Content Delivery Services E-Commerce Consumer, IT &  CRM & Customer Service Telecom Hardware  ERP, Supply Chain & Commerce  Finance & Administration  Human Resources  Licensed Software Leaders  Marketing & Advertising  Vertical Markets

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 4 Investment Banking Advisors 4 Capstone Partners KeyInvestment Takeaways Banking Advisors – M&A Activity & Multiples

 2014 M&A Dollar Volume stays relatively flat at $46B despite a strong increase in deal volume  Weak dollar volume in Q4 of just $5.3B following a huge Q3 that accounted for more than half of 2014 dollar volume  2014 transaction volume of 881 deals reaches a new five year high  Q4’14 saw 243 deals, showing a slight increase from Q3’14  Vertical Market solutions constitute roughly one third all transactions with over 200 deals per year since 2011  Private company deal volume remains healthy with deal mix shifting towards the higher end in recent periods  We observe a significant increase in total M&A deals in LTM  The Median LTM Revenue Multiple paid for public company targets above $100M lowered to 2.9x  Fewer low multiple sub $100M deals boosted the overall LTM revenue multiple to match $100M+ deal multiple  Notable M&A transactions in Q4  Apax Partners / Exact ($764M)  Cox Automotive / xtime ($325M)  Vonage / TeleSphere ($114M)

 Siris Capital / Digital River ($646M)  Progress Software / Telerik ($263M)  Vector Capital / ChyronHego ($114M)  Yahoo! / BrightRoll ($640M)  BAE Systems / SilverSky ($233M)

 Aetna / bswift ($400M)  Gain Capital / City Index ($118M)  The most active buyers include Vista Equity Partners, Yahoo!, Intuit, Oracle, IBM, SAP, Google, Genesys, Microsoft and The Riverside Company (sorted by most active).  Capstone expects the robust M&A activity and attractive exit valuations to continue in SaaS & Cloud  There is some risk that a market correction could negatively impact activity levels and valuation multiples

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 5 Investment Banking Advisors 5 Capstone Partners KeyInvestment Takeaways Banking Advisors – Public Company Metrics

 Q4’14 saw 6 new companies added to the SaaS & Cloud 130  Post IPO performance was mixed across the 6 companies added to the SaaS & Cloud 130  Q4’14 saw a recovery in stock performance across the SaaS & Cloud sector  SaaS & Cloud 130 posted a 6.1% growth in Q4’14 along with a 5.4% growth for the NASDAQ  Median LTM Revenue Multiple weakened to 4.8x, but still represents a healthy multiple  Within SaaS & Cloud, median multiples vary considerably between segments ranging from 1.7x to 8.7x in Q4’14  Median LTM EBITDA multiple improved to 17.8x  Three of the thirteen SaaS & Cloud segments are trading at medians above 30x LTM EBITDA  Median LTM P/E multiples grew to 29.1x  Public markets demonstrate a strong preference for companies growing quickly and investing to solidify market leadership status, confident that future profits will come with scale  SaaS & Cloud 130 posted median revenue growth of 20.9% in 2014  Continued growth is expected throughout NTM at 17.8%  LTM Median EBITDA growth of 5.6% is down from 9.5% in 2013 but is expected to increase to 13.1% in NTM  EBITDA growth drop from 2011 high due to increased OpEx spend as companies prioritize growth over profitability  Median gross margins have stayed constant for the past five years and currently stand at 67.5%  Cloud & IT Infrastructure and Content Creation & Management top the list at over 80% as newly emerging technologies that enable the cloud to run more efficiently command strong margins  Median EBITDA margins have consistently decreased as companies reinvest to fuel growth

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 6 Investment Banking Advisors 6 Capstone Partners Investment Banking AdvisorsCapstone Partners Investment Banking Advisors

M&AObservations Activity & and MultiplesRecommendations

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 7 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.7 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners LTMInvestment M&A Banking Dollar Advisors Volume

 2014 M&A Dollar Volume stays relatively flat at $46B despite a strong increase in deal volume  Private dollar volume increase offset by lower public company M&A  Weak dollar volume in Q4 of just $5.3B following a huge Q3 that accounted for more than half of 2014 dollar volume

$50,000

$45,000

$40,000 $20,136 $35,000 $24,028 $21,510 $20,534 $30,000

$25,000 $23,733

$20,000

Total TransactionValue $15,000 $26,308 $22,968 $24,494 $10,000 $7,326 $21,183 $13,741 $5,000 $7,014 $0 2009 2010 2011 2012 2013 2014

Total Private $ Total Public $

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 8 Investment Banking Advisors 8 Capstone Partners LTMInvestment M&A Banking Transaction Advisors Volume by Segment

 2014 transaction volume of 881 deals reaches a new five year high.  Q4’14 saw 243 deals, showing a slight increase from Q3’14.  Analytics / Business Intelligence segment more than doubled in 2014 to 117 deals, continuing a consistent rise in transaction volume since 2009.

1000

900

800 295

700

600 232 257 224 99 500 60 183 80 52 14 400 74 52 50 40 Transactions 19 27 44 23 11 300 57 40 47 21 40 25 115 16 40 12 10 45 20 26 37 54 12 17 32 200 34 24 35 31 22 43 50 14 40 42 25 73 12 13 11 28 32 33 100 5 13 28 87 91 19 10 53 62 117 39 52 0 12 25 32 39 2009 2010 2011 2012 2013 2014 Analytics / Business Intelligence Cloud & IT Infrastructure Cloud Computing / Storage Communication & Collaboration Content Creation & Management Content Delivery Services CRM & Customer Service ERP, Supply Chain & Commerce Finance & Administration Human Resources Marketing & Advertising Vertical Market

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 9 Investment Banking Advisors 9 Capstone Partners LTMInvestment M&A Banking Transaction Advisors Volume by Deal Size – Private Targets

 Private company deal volume remains healthy with deal mix shifting towards the higher end in recent periods  We observe a significant increase in total M&A deals in 2014, up 35% from 2013  LTM median deal value at remains at its five year high of $25M

100% 1 1 3 1 3 8 5 2 4 9 7 11 15 6 10 90% 10 10 23 7 12 18 8 28 80% 23 28 11 28 22 70% 29 14 17 30 28 60% 22 30 26 23 50% 39 36 53 40% 33 49 30% 54 20% 71 80 78 46 10% 42

0% 2009 2010 2011 2012 2013 2014 Total Deals 314 505 661 682 642 868 Deals w/ Value 111 200 243 213 164 184 Median ($M) $10 $20 $20 $18 $25 $25 $0-10M $10-25M $25-50M $50-100M $100-250M $250-500M $500M-1B $1B+

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 10 Investment Banking Advisors 10 Capstone Partners LTMInvestment M&A Banking Transaction Advisors Volume by Deal Size – Public Targets

 Public transaction volume dropped to a new five year low while median deal value is at five year high  H2’14 saw four $1B+ deals, with SAP’s acquisition of Concur Technologies the largest at $8.3B  Only two deals fell below $100M in transaction value

100% 2 90% 7 6 7 3 80% 7 5 3 70% 4 1 4 60% 1 8 4 2 4 2 50% 2 1 40% 2 3 3 5 1 2 4 1 1 30% 1 3 2 2 20% 4 3 4 10% 4 6 1 3 2 2 1 0% 1 2009 2010 2011 2012 2013 2014 Total Deals 20 19 33 26 23 13 Median ($M) $86 $293 $305 $329 $265 $660 $0-10M $10-25M $25-50M $50-100M $100-250M $250-500M $500M-1B $1B+

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 11 Investment Banking Advisors 11 Capstone Partners MedianInvestment Banking LTM Advisors Revenue Multiples – Private Targets

 Median 2014 Revenue Multiple paid for private company targets fell to 3.6x  Hot companies and sectors can see double digit revenue multiple exits but those are the exception with most companies being acquired at more modest multiples

4.5x

4.0x 3.8x 3.9x 3.6x 3.5x 3.1x 3.0x 2.8x

2.5x 2.2x

2.0x

1.5x

MedianRevenue Multiple 1.0x

0.5x

0.0x 2009 2010 2011 2012 2013 2014 25th % 1.1x 1.9x 1.7x 1.4x 2.4x 2.2x 75th % 4.1x 6.9x 6.2x 4.3x 6.0x 6.0x

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 12 Investment Banking Advisors 12 Capstone Partners MedianInvestment Banking LTM Advisors Revenue Multiples – Public Targets

 The Median LTM Revenue Multiple paid for public company targets above $100M lowered to 2.9x  Sub $100M deals LTM revenue multiple jumped to 2.9x but with just two deals the data isn’t indicative of any trends  With less than 30 public company target data points in a given year, the median multiple shows volatility, making it difficult to draw reliable conclusions on M&A valuation trends based on the data

4.5x 4.1x 4.0x

3.5x 3.2x 3.2x 3.1x 2.9x 2.9x 3.0x 2.5x 2.4x 2.5x 2.5x 2.3x 2.2x

2.0x 1.5x 1.5x

1.0x Median Revenue Multiple Revenue Median 0.5x

0.0x 2009 2010 2011 2012 2013 2014 25th % 0.9x 1.8x 1.5x 1.0x 1.3x 2.3x 75th % 2.3x 4.3x 4.3x 3.4x 4.6x 4.6x All Deals $100M+ Deals

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 13 Investment Banking Advisors 13 Capstone Partners MedianInvestment Banking LTM Advisors Revenue Multiples by Segment – 2009 to Current

 Median Revenue Multiples for SaaS segments vary from 2.4x to 4.5x  Analytics/Business Intelligence, Finance & Administration and Cloud & IT Infrastructure targets achieved median multiples of 4.0x or more as these companies are often acquired earlier in their revenue curve at strong multiples  Saturation within the Marketing & Advertising segment has become apparent with lower multiples in recent periods

5.0x 4.5x 4.5x 4.1x 4.0x 4.0x 3.6x 3.5x 3.3x 3.1x 3.0x 3.0x 2.6x 2.5x 2.4x 2.4x 2.4x 2.5x 2.0x 1.5x 1.0x

0.5x Median Revenue Multiple Revenue Median 0.0x

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 14 Investment Banking Advisors 14 Capstone Partners HighestInvestment Banking Revenue Advisors Multiple Transactions for 2014

LTM Multiple Premium Ann. Enterprise Buyer Target Segment Target Description Revenue on $ to 1 Mo Date Value Multiple Invested Prior

Cloud & IT Provides bring-your-own-device (BYOD) Android and iOS mobile 10/1/14 $100M 50.0x 8.6x NA Infrastructure device management (MDM) SaaS for businesses.

Cloud & IT Provides business service management (BSM) SaaS to enable 7/9/14 $100M 20.0x NA NA Infrastructure monitoring of IT operations and infrastructure for enterprises.

Vertical Market – Provides restaurant reservation and management software for 6/13/14 Retail / restaurants. Also provides online reservation booking services for $2.6B 12.6x NA 63.6% Restaurants consumers through www.opentable.com. Provides predictive mobile workforce management SaaS for Human 7/31/14 businesses providing in-field service requests in the home healthcare, $550M 12.2x 5.5x NA Resources utility, telecommunications and retail sectors globally.

Finance & Provides corporate travel and expense management software as a 9/18/14 $7.7B 11.5x NA 29.0% Administration service (SaaS) and a related mobile application for businesses.

Human Provides HR healthcare benefits, payroll and related billing 11/3/14 $400M 10.0x 7.8x NA Resources management software and BPO services.

Provides online and mobile streaming video content networks and Content Delivery 7/11/14 video content management SaaS to enable businesses and IPTV $70M 10.0x 4.4x NA Services broadcasters to upload and stream video content to consumers.

Content Delivery Provides cloud-based video content delivery and advertising 1/6/14 $49M 9.8x NA NA Services enablement software for Web publishers and content providers

Vertical Market – Creator of turnitin.com, provides anti-plagiarism SaaS for teachers, 6/2/14 $752M 9.5x 6.0x NA Education educational institutions and students.

Marketing & Provides mobile-focused programmatic demand-side real-time 10/28/14 $60M 8.6x 40.0x NA Advertising bidding (RTB) and data management SaaS for online marketers.

Excludes deals with Target company revenue less than $2M

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 15 Investment Banking Advisors 15 Capstone Partners NotableInvestment Banking M&A Advisors Transactions for Q4’14

LTM Multiple Premium Enterprise Ann. Date Buyer Target Segment Target Description Revenue on $ to 1 Mo Value Multiple Invested Prior ERP, Supply Provides enterprise resource planning (ERP), customer relationship 10/9/14 Chain & management (CRM), corporate performance management (CPM) $764M 3.2x NA 13.8% Commerce and HR management software. ERP, Supply Provides e-commerce website development, order management, 10/23/14 Chain & fraud prevention, payment processing, marketing, fulfillment, reporting $646M 1.7x NA 78.6% Commerce and customer care services for online retailers as a managed service. Provides a Web, mobile and connected TV digital video advertising Marketing & 11/11/14 network and targeted analytics SaaS for Web publishers, marketers $640M 6.4x 15.9x NA Advertising and businesses.

Human Provides HR healthcare benefits, payroll and related billing 11/3/14 $400M 10.0x 7.8x NA Resources management software and BPO services.

Vertical Market Provides automotive dealership CRM and operations management 11/11/14 $325M 8.1x 9.2x NA – Transportation SaaS

Content Provides .NET, JavaScript, and user interface (UI) mobile application 10/22/14 Creation & $263M 4.4x NA NA development software and SaaS. Management

Cloud & IT Provides managed network security and intrusion detection and email 10/21/14 $233M 3.1x* 3.3x* NA Infrastructure security services.

Vertical Market Provides web-based foreign exchange (ForEx), options, spread betting 10/31/14 – Financial $118M 1.0x NA NA and contracts-for-difference (CFD) software-as-a-service (SaaS). Services

Communication Provides hosted VoIP and unified communications services, and 11/5/14 $114M 2.9x* 2.3x NA & Collaboration distributes IP business telephones for businesses in the US.

Content Provides TV graphics design, digital asset management, playout and 11/17/14 Creation & $114M 1.9x NA 11.9% real-time data visualization SaaS for television broadcasters globally. Management (*) Estimate from Capstone research & industry sources

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 16 Investment Banking Advisors 16 Capstone Partners MostInvestment Active Banking Advisors SaaS/Cloud Buyers – Last 2 Years

# of Deals SaaS/Cloud Transactions Company SaaS/Cloud Total Date Company Value Date Company Value 11/25/14 Advanced Computer SW $1.1B 3/28/14 PeopleAdmin NA 10/14/14 NAVEX Global $550M 9/30/13 Active Network $1.1B 9/29/14 TIBCO Software $4.2B 9/23/13 Greenway Medical Technologies $644M 14 39 7/22/14 AGDATA NA 8/23/13 Omnitracs $800M 7/8/14 Social Solutions $125M 7/23/13 Digital Technology Int’l NA 6/9/14 Autotask NA 7/22/13 Saxotech NA 5/13/14 DealerSocket NA 1/7/13 Lanyon NA 11/11/14 BrightRoll $640M 2/14/14 Distill (Employees) NA 9/22/14 Bookpad $8.3M 1/29/14 Tomfoolery $16M 9/3/14 Luminate NA 7/31/13 Palaran $38M 12 46 8/15/14 ClarityRay NA 7/18/13 Ztelic NA 7/21/14 Flurry NA 7/17/13 AdMovate NA 7/11/14 RayV $70M 5/23/13 PlayerScale NA 12/10/14 Acrede NA 5/8/14 Lettuce $30M 8/13/14 Itrios NA 11/20/13 Prestwick Services NA 10 16 8/7/14 PaySuite NA 10/30/13 Full Slate NA 7/30/14 KDK Softwares India NA 7/18/13 Fifo NA 5/14/14 Invitco NA 6/21/13 Elastic Intelligence NA 12/22/14 Datalogix NA 1/7/14 Corente NA 7/31/14 TOA Technologies $550M 12/20/14 Responsys $1.6B 10 30 6/23/14 MICROS Systems $5.3B 10/23/13 BigMachines $450M 6/20/14 LiveLOOK NA 10/17/13 Compendium $15M 2/24/14 BlueKai $420M 3/13/13 Nimbula NA

8/11/14 Lighthouse Security Group NA 10/3/13 Xtify $40M 7/31/14 CrossIdeas NA 8/15/13 Trusteer $900M 9 34 4/10/14 Silverpop Systems NA 7/9/13 CSL International NA 2/24/14 Cloudant $150M 6/4/13 SoftLayer Technologies $2.0B 11/13/13 Fiberlink Communications $300M

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 17 Investment Banking Advisors 17 Capstone Partners MostInvestment Active Banking Advisors SaaS/Cloud Buyers – Last 2 Years

# of Deals SaaS/Cloud Transactions Company SaaS/Cloud Total Date Company Value Date Company Value 9/18/14 Concur Technologies $8.3B 5/16/13 KMS Software NA 5/20/14 SeeWhy NA 3/7/13 Camilion Solutions NA 9 17 3/26/14 Fieldglass $1.0B 2/22/13 SmartOps NA 9/10/13 KXEN $40M 1/31/13 Ticket-Web NA 6/5/13 Hybris $1.3B

8/26/14 ZYNC NA 5/7/14 Appetas NA 6/25/14 Appurify NA 5/7/14 Stackdriver NA 8 79 6/20/14 Dropcam $555M 5/6/14 Adometry $150M 6/19/14 mDialog NA 5/5/14 Rangespan NA

3/18/14 Solariat NA 5/20/13 Soundbite $100M 1/20/14 Ventriloquist NA 7 10 2/26/13 Angel.com $110M 12/2/13 Voran Tecnologia NA 1/29/13 UTOPY NA 10/8/13 Echopass NA

12/11/14 Bit Stadium NA 1/7/14 Parature $100M 11/13/14 Aorato $200M 7 32 10/23/13 Apiphany NA 7/11/14 InMage Systems NA 3/5/13 MetricsHub NA 5/1/14 GreenButton NA

11/17/14 Fisher/Unitech NA 12/20/13 MERCAREON NA 8/26/14 DMA NA 7 28 11/7/13 McLeod & Associates NA 8/22/14 Lexipol NA 1/21/13 Alchemy Systems NA 7/28/14 Censis Technologies NA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 18 Investment Banking Advisors 18 Capstone Partners Investment Banking AdvisorsCapstone Partners Investment Banking Advisors

Public Company Observations and Valuation & Recommendations Operating Metrics

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 19 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.19 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners EnterpriseInvestment Banking AdvisorsSaaS & Cloud 130 Public Company Universe – Pt. 1

Analytics / Business Intelligence

Cloud & IT Infrastructure

Cloud Computing / Storage

Communication & Collaboration

Content Creation & Management

Content Delivery Services

CRM & Customer Service

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 20 Investment Banking Advisors 20 Capstone Partners EnterpriseInvestment Banking AdvisorsSaaS & Cloud 130 Public Company Universe – Pt. 2

ERP, Supply Chain & Commerce

Finance & Administration

Human Resources

Licensed Software Leaders

Marketing & Advertising

Vertical Markets

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 21 Investment Banking Advisors 21 Capstone Partners RecentInvestment Banking IPOs Advisors – Hortonworks

IPO Details Business Description Offering Date: 12/11/14 Market Cap: $665.9M Focuses on the development, distribution, and support of Offering Price: $16.00 Offering Size: $100.0M Hadoop open source project in the United States and internationally. Original Range: $12.00-$14.00 % of Company: 15.0%

IPO Performance HQ: Palo Alto, CA Ticker: NasdaqGS: HDP Open: $24.00 12/31 $/share: $27.00 % Change to Offer: 50.0% % Change to Offer: 68.8% Stock Performance thru End of Q4’14 Close: $26.38 % Change to Open: 12.5% $31.00 % Change to Offer: 64.9% % Change to Open: 9.9% $26.00 Financial & Valuation Metrics $21.00 LTM Revenue: $44.2M LTM Rev Growth: 76.9% LTM EBITDA: $(97.7M) Gross Margin: 34.3% LTM Net Income: $(107.7M) EBITDA Margin: NM $16.00 Mkt Cap / $ Invested: 3.3x Rev Multiple: 22.9x $11.00 Investors

Benchmark Capital; BlackRock; Dragoneer Investment $6.00

12/12/14 12/30/14 12/15/14 12/16/14 12/17/14 12/18/14 12/19/14 12/22/14 12/23/14 12/24/14 12/26/14 12/29/14 12/31/14

Open IPO Group; Hewlett-Packard; Index Ventures; Passport Capital; Tenaya Capital; Teradata; Yahoo!

Offer Range Price-Open Gap $/Share

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 22 Investment Banking Advisors 22 Capstone Partners RecentInvestment Banking IPOs Advisors – HubSpot

IPO Details Business Description Offering Date: 10/8/14 Market Cap: $777.8M Provides a cloud-based inbound marketing and sales Offering Price: $25.00 Offering Size: $125.0M software platform for businesses. Original Range: $22.00-$24.00 % of Company: 16.1%

IPO Performance HQ: Cambridge, MA Ticker: NYSE: HUBS Open: $32.95 12/31 $/share: $33.61 % Change to Offer: 31.8% % Change to Offer: 34.4% Stock Performance thru End of Q4’14 Close: $30.10 % Change to Open: 2.0% $38.00 % Change to Offer: 20.4% $36.00 % Change to Open: (8.6)% $34.00

Financial & Valuation Metrics $32.00

LTM Revenue: $104.1M LTM Rev Growth: 46.0% $30.00

LTM EBITDA: $(34.8M) Gross Margin: 66.9% $28.00 LTM Net Income: $(37.0M) EBITDA Margin: NM $26.00 Mkt Cap / $ Invested: 7.7x Rev Multiple: 11.2x $24.00

Investors $22.00

Altimeter Capital Management; Bantam Group; Cross $20.00

10/10/14 10/15/14 10/20/14 10/23/14 10/28/14 10/31/14 11/5/14 11/10/14 11/13/14 11/18/14 11/21/14 11/26/14 12/2/14 12/5/14 12/10/14 12/15/14 12/18/14 12/23/14 12/29/14 IPO Creek Advisors; CRV; Fidelity Investments; General Catalyst Partners; Google Ventures; Matrix Partners; Salesforce.com; Scale Venture Partners; Sequoia Capital; Tenaya Capital Offer Range Price-Open Gap $/Share

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 23 Investment Banking Advisors 23 Capstone Partners RecentInvestment Banking IPOs Advisors – New Relic

IPO Details Business Description Offering Date: 12/11/14 Market Cap: $1.1B The company’s cloud-based suite of products enables Offering Price: $23.00 Offering Size: $115.0M organizations to collect, store, and analyze massive amounts of software data in real time. Original Range: $20.00-$22.00 % of Company: 10.9%

IPO Performance HQ: San Francisco, CA Ticker: NYSE: NEWR Open: $30.16 12/31 $/share: $34.84 % Change to Offer: 31.1% % Change to Offer: 51.5% Stock Performance thru End of Q4’14 Close: $33.99 % Change to Open: 15.5% $38.00 % Change to Offer: 47.8% $36.00 % Change to Open: 12.7% $34.00 Financial & Valuation Metrics $32.00 $30.00 LTM Revenue: $85.0M LTM Rev Growth: 83.0% $28.00 LTM EBITDA: $(37.4M) Gross Margin: 82.6% LTM Net Income: $(41.1M) EBITDA Margin: NM $26.00 Mkt Cap / $ Invested: 4.9x Rev Multiple: 15.8x $24.00 $22.00 Investors $20.00

Allen & Co.; Benchmark Capital; BlackRock; DAG $18.00

12/12/14 12/30/14 12/15/14 12/16/14 12/17/14 12/18/14 12/19/14 12/22/14 12/23/14 12/24/14 12/26/14 12/29/14 12/31/14

Open IPO Ventures; Dragoneer Investment Group; Insight Venture Partners; Passport Management; T. Rowe Price Group; Tenaya Capital; The Four Rivers Group; Trinity Ventures; Wellington Management Co. Offer Range Price-Open Gap $/Share

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 24 Investment Banking Advisors 24 Capstone Partners RecentInvestment Banking IPOs Advisors – Upland Software

IPO Details Business Description Offering Date: 11/5/14 Market Cap: $379.4M Provides cloud-based enterprise work management Offering Price: $12.00 Offering Size: $100.8M software. Original Range: $12.00-$14.00 % of Company: 26.6%

IPO Performance HQ: Austin, TX Ticker: NasdaqGM: UPLD Open: $11.00 12/31 $/share: $9.56 % Change to Offer: (8.3)% % Change to Offer: (20.3)% Stock Performance thru End of Q4’14 Close: $9.75 % Change to Open: (13.1)% $15.00 % Change to Offer: (18.8)% $14.00 % Change to Open: (11.4)% $13.00 Financial & Valuation Metrics LTM Revenue: $60.2M LTM Rev Growth: 57.0% $12.00 LTM EBITDA: $(8.7M) Gross Margin: 65.2% $11.00 LTM Net Income: $(22.6M) EBITDA Margin: NM Mkt Cap / $ Invested: 5.5x Rev Multiple: 3.7x $10.00

Investors $9.00

Acorn Performance Group; Activant Capital Group; Austin $8.00

11/6/14 12/15/14 12/26/14 11/10/14 11/12/14 11/14/14 11/18/14 11/20/14 11/24/14 11/26/14 12/1/14 12/3/14 12/5/14 12/9/14 12/11/14 12/17/14 12/19/14 12/23/14 12/30/14 IPO Ventures; ESW Capital; Kleinheinz Capital Partners

Offer Range Price-Open Gap $/Share

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 25 Investment Banking Advisors 25 Capstone Partners RecentInvestment Banking IPOs Advisors – Workiva

IPO Details Business Description Offering Date: 12/11/14 Market Cap: $379.4M Provides a cloud-based and mobile-enabled platform for Offering Price: $14.00 Offering Size: $100.8M enterprises to collect, manage, report, and analyze critical business data in real time. Original Range: $13.00-$15.00 % of Company: 26.6%

IPO Performance HQ: Ames, IA Ticker: NYSE: WK Open: $14.00 12/31 $/share: $13.40 % Change to Offer: 0.0% % Change to Offer: (4.3)% Stock Performance thru End of Q4’14 Close: $13.75 % Change to Open: (4.3)% $15.50 % Change to Offer: (1.8)% $15.00 % Change to Open: (1.8)% $14.50 Financial & Valuation Metrics LTM Revenue: $106.1M LTM Rev Growth: 30.4% $14.00 LTM EBITDA: $(28.8M) Gross Margin: 71.4% $13.50 LTM Net Income: $(33.9M) EBITDA Margin: NM Mkt Cap / $ Invested: 6.4x Rev Multiple: 4.9x $13.00

Investors $12.50

Ames Seed Capital; Bluestem Capital $12.00

12/12/14 12/30/14 12/15/14 12/16/14 12/17/14 12/18/14 12/19/14 12/22/14 12/23/14 12/24/14 12/26/14 12/29/14 12/31/14

Open IPO

Offer Range Price-Open Gap $/Share

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 26 Investment Banking Advisors 26 Capstone Partners RecentInvestment Banking IPOs Advisors – Yodlee

IPO Details Business Description Offering Date: 10/2/14 Market Cap: $349.0 Operates a technology and applications platform that Offering Price: $12.00 Offering Size: $75.0M provides digital financial services in the cloud. Original Range: $11.00-$13.00 % of Company: 21.5%

IPO Performance HQ: Redwood City, CA Ticker: NasdaqGS: YDLE Open: $16.20 12/31 $/share: $12.20 % Change to Offer: 35.0% % Change to Offer: 1.7% Stock Performance thru End of Q4’14 Close: $13.44 % Change to Open: (24.7)% $17.00 % Change to Offer: 12.0% $16.00 % Change to Open: (17.0)% $15.00 Financial & Valuation Metrics LTM Revenue: $84.3M LTM Rev Growth: 26.0% $14.00 LTM EBITDA: $(4.2M) Gross Margin: 62.2% $13.00 LTM Net Income: $(1.3M) EBITDA Margin: 5.0% Mkt Cap / $ Invested: 2.8x Rev Multiple: 5.5x $12.00

Investors $11.00

Accel Partners; ACI Worldwide; Angel Investors; ArrowPath $10.00

10/22/14 12/1/14 12/17/14 10/6/14 10/9/14 10/14/14 10/17/14 10/27/14 10/30/14 11/4/14 11/7/14 11/12/14 11/17/14 11/20/14 11/25/14 12/4/14 12/9/14 12/12/14 12/22/14 12/26/14 12/31/14 IPO Venture Partners; Bank of America; Citigroup; Fidelity Management; Gold Hill Capital Management; Inktomi; Institutional Venture Partners; Intel; JPMorgan; National Association; Morgan Stanley; Sequoia Capital; Skyblaze Ventures; Time Warner; W Capital Partners; Warburg Pincus Offer Range Price-Open Gap $/Share

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 27 Investment Banking Advisors 27 Capstone Partners MedianInvestment Banking Stock Advisors Performance – SaaS & Cloud 130

 Q4’14 saw a recovery in stock performance across the SaaS & Cloud sector  SaaS & Cloud 130 posted a 6.1% growth in Q4’14 along with a 5.4% growth for the NASDAQ  Content Delivery Services posted the largest gain within the SaaS & Cloud sector

Stock Performance Stock Performance - 9/30-12/31 120% 108.7% Content Delivery Services 29.0% 97.1% Cloud & IT Infrastructure 8.1% 100% Communication & Collaboration 7.8% 81.8% Vertical Market 80% 7.8% 63.9% Marketing & Advertising 7.4% 60% SaaS & Cloud 130 6.1% Analytics / Business Intelligence 5.8% 40% CRM & Customer Service 3.3% Human Resources 0.6% 20% 13.4% ERP, Supply Chain & Commerce (0.4)% 6.1% 5.4% Content Creation & Management (0.7)% 0% Licensed Software Leaders (0.9)%

(6.6)% Cloud Computing / Storage (3.2)% (20)% Finance & Administration (3.8)% Last 5 Years Last 3 Years LTM 9/30-12/31 (15)% 0% 15% 30% 45% SaaS & Cloud 130 NASDAQ

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 28 Investment Banking Advisors 28 Capstone Partners MedianInvestment Banking LTM Advisors Revenue Multiples – SaaS & Cloud 130

 Median LTM Revenue Multiple weakened to 4.8x, but still represents a healthy multiple  Within SaaS & Cloud, median multiples vary considerably between segments ranging from 1.7x to 8.7x in Q4’14  Cloud & IT Infrastructure segment commands highest median LTM Revenue multiple at an impressive 8.7x  Content Delivery Services LTM Revenue multiple lags at 1.7x and represents the lowest multiple within SaaS & Cloud 130 primarily due to its lower margin profile

LTM Enterprise Value / Revenue LTM Enterprise Value / Revenue

6.0x Cloud & IT Infrastructure 8.7 x 5.2x Human Resources 6.9 x 5.0x 4.8x Finance & Administration 5.5 x Content Creation & Management 5.5 x 4.1x 4.0x 3.8x Vertical Market 5.3 x 3.5x Analytics / Business Intelligence 5.1 x SaaS & Cloud 130 4.8 x 3.0x Marketing & Advertising 4.3 x Licensed Software Leaders 3.7 x 2.0x Cloud Computing / Storage 3.5 x ERP, Supply Chain & Commerce 3.4 x 1.0x Communication & Collaboration 3.1 x CRM & Customer Service 2.7 x Content Delivery Services 1.7 x 0.0x 2010 2011 2012 2013 2014 0x 2x 4x 6x 8x 10x Based on data available as of 12/31/14 Based on data available as of 12/31/14

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 29 Investment Banking Advisors 29 Capstone Partners MedianInvestment Banking LTM Advisors EBITDA Multiples – SaaS & Cloud 130

 Median LTM EBITDA multiple improved to 17.8x  Three of the SaaS & Cloud segments are trading at medians above 30x LTM EBITDA  Majority of the segments posted increases in EBITDA Multiples compared to Q3’14  The premium multiples for SaaS companies versus Licensed Software Leaders illustrates higher expected growth rates and the market’s preference for the more predictable recurring revenue business model

LTM Enterprise Value / EBITDA LTM Enterprise Value / EBITDA

20x ERP, Supply Chain & Commerce 46.2 x 17.8x CRM & Customer Service 40.4 x 18x 16.7x 17.0x Human Resources 32.6 x 16x Analytics / Business Intelligence 27.4 x 14x 12.7x Marketing & Advertising 25.5 x 11.7x 12x Finance & Administration 20.4 x SaaS & Cloud 130 17.8 x 10x Vertical Market 17.7 x 8x Cloud & IT Infrastructure 17.2 x

6x Communication & Collaboration 14.0 x Content Delivery Services 13.0 x 4x Content Creation & Management 11.4 x 2x Cloud Computing / Storage 9.7 x Licensed Software Leaders 0x 9.7 x 2010 2011 2012 2013 2014 0x 10x 20x 30x 40x 50x Based on data available as of 12/31/14 Based on data available as of 12/31/14 Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 30 Investment Banking Advisors 30 Capstone Partners MedianInvestment Banking LTM Advisors P/E Multiples – SaaS & Cloud 130

 Median LTM P/E multiples grew to 29.1x  Public markets demonstrate a strong preference for companies growing quickly and investing to solidify market leadership status, confident that future profits will come with scale  CRM & Customer Service and ERP, Supply Chain & Commerce segments trade at very high P/E multiples though only a few companies in those segments have reached profitability

LTM P/E LTM P/E

35x CRM & Customer Service 95.3 x ERP, Supply Chain & Commerce 68.4 x 29.1x 30x 28.2x 27.2x Human Resources 52.3 x Marketing & Advertising 50.4 x 25x 22.3x Analytics / Business Intelligence 45.2 x 21.0x Content Creation & Management 35.7 x 20x SaaS & Cloud 130 29.1 x Vertical Market 29.1 x 15x Content Delivery Services 27.0 x Cloud & IT Infrastructure 26.2 x 10x Communication & Collaboration 19.4 x Finance & Administration 18.9 x 5x Cloud Computing / Storage 17.0 x Licensed Software Leaders 15.3 x 0x 2010 2011 2012 2013 2014 0x 20x 40x 60x 80x 100x 120x Based on data available as of 12/31/14 Based on data available as of 12/31/14 Companies with Net Margin <5.0% and P/E above 40x deemed NA Companies with Net Margin <5.0% and P/E above 40x deemed NA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 31 Investment Banking Advisors 31 Capstone Partners MedianInvestment Banking Revenue Advisors Growth – SaaS & Cloud 130

 SaaS & Cloud 130 posted median revenue growth of 20.9% in 2014  Strong growth is expected to continue with 17.8% in 2015  Licensed Software Leaders project just 2.9% growth, reinforcing the market shift towards SaaS-based solutions

Revenue Growth vs Prior 12 Mos NTM / LTM Revenue Growth Projection

30% CRM & Customer Service 23.4% 25.4% Cloud & IT Infrastructure 22.4% 25% Human Resources 21.6% 20.9% ERP, Supply Chain & Commerce 19.3% 19.7% 19.4% 20% SaaS & Cloud 130 17.8% 17.3% 17.8% Marketing & Advertising 17.8% Content Creation & Management 17.7% 15% Vertical Market 17.0% Analytics / Business Intelligence 15.6% 10% Finance & Administration 13.1% Communication & Collaboration 12.6% 5% Cloud Computing / Storage 8.1% Content Delivery Services 4.5%

0% Licensed Software Leaders 2.9% 2010 2011 2012 2013 2014 NTM 0% 10% 20% 30% 12/31/14 Based on data available as of 12/31/14 Based on data available as of 12/31/14

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 32 Investment Banking Advisors 32 Capstone Partners MedianInvestment Banking EBITDA Advisors Growth – SaaS & Cloud 130

 LTM Median EBITDA growth of 5.6% is down from 9.5% in 2013 but is expected to increase to 13.1% in NTM  EBITDA growth drop from 2011 high may be attributed to increased OpEx for prioritizing growth over profitability  Most SaaS & Cloud segments are expected to achieve greater than 10% EBITDA growth for NTM, the exceptions being more mature segments such as ERP, Supply Chain & Commerce, Communication & Collaboration and Cloud Computing / Storage

EBITDA Growth vs Prior 12 Mos NTM / LTM EBITDA Growth Projection

30% Content Creation & Management 53.4% 24.6% CRM & Customer Service 44.5% 25% 22.5% Marketing & Advertising 26.3% Human Resources 24.2% 20% Analytics / Business Intelligence 20.2% Finance & Administration 17.4% Cloud & IT Infrastructure 16.3% 15% 13.1% Content Delivery Services 15.2% 10.9% 9.5% SaaS & Cloud 130 13.1% 10% Vertical Market 12.3% 5.6% ERP, Supply Chain & Commerce 9.3% 5% Communication & Collaboration 8.9% Cloud Computing / Storage 4.9% 0% Licensed Software Leaders 1.3% 2010 2011 2012 2013 2014 NTM 0% 10% 20% 30% 40% 50% 60% 12/31/14 Based on data available as of 12/31/14 Based on data available as of 12/31/14 Companies with EBITDA Margin between -5.0% and 5.0% deemed NA Companies with EBITDA Margin between -5.0% and 5.0% deemed NA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 33 Investment Banking Advisors 33 Capstone Partners MedianInvestment Banking EPS Advisors Growth – SaaS & Cloud 130

 Median EPS growth increased to 10.4% in LTM, and is expected to rise to 12.9% in NTM  Established leaders with scale are able to drive increased profitability as sales & marketing spend normalizes after periods of heavy investment to support growth

EPS Growth vs Prior 12 Mos NTM / LTM EPS Growth Projection

25% CRM & Customer Service 39.3% 20.9% Marketing & Advertising 27.0% 20% Human Resources 19.5% Analytics / Business Intelligence 15.7% 16.5% ERP, Supply Chain & Commerce 13.7% 15% 12.9% SaaS & Cloud 130 12.9% 11.7% Cloud & IT Infrastructure 12.9% 10.4% 9.8% Communication & Collaboration 11.7% 10% Vertical Market 11.5% Cloud Computing / Storage 9.3% 5% Content Creation & Management 6.6% Licensed Software Leaders 3.1% Finance & Administration (10.2)% 0% Content Delivery Services (11.3)% 2010 2011 2012 2013 2014 NTM 12/31/14 (20)% 0% 20% 40% 60% Based on data available as of 12/31/14 Based on data available as of 12/31/14 Companies with Net Margin between -5.0% and 5.0% deemed NA Companies with Net Margin between -5.0% and 5.0% deemed NA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 34 Investment Banking Advisors 34 Capstone Partners MedianInvestment Banking Gross Advisors Margin Trends – SaaS & Cloud 130

 Median gross margins have stayed constant for the past five years and currently stand at 67.5%  Cloud & IT Infrastructure and Content Creation & Management top the list at over 80% as newly emerging technologies that enable the cloud to run more efficiently command strong margins  Cloud Computing / Storage segment gross margins are suffering due to ongoing price competition to capture market share

Gross Margins Gross Margins by Segment

80% Cloud & IT Infrastructure 82.9% 70% 67.8% 67.7% 67.6% 67.7% 67.5% Content Creation & Management 81.7% Communication & Collaboration 70.7% 60% Analytics / Business Intelligence 70.3% Vertical Market 67.8% 50% SaaS & Cloud 130 67.5% ERP, Supply Chain & Commerce 65.7% 40% Content Delivery Services 65.7% 30% Finance & Administration 65.6% Marketing & Advertising 65.5% 20% CRM & Customer Service 65.4% Human Resources 65.1% 10% Licensed Software Leaders 64.3%

0% Cloud Computing / Storage 61.5% 2010 2011 2012 2013 2014 0% 25% 50% 75% 100% Based on data available as of 12/31/14 Based on data available as of 12/31/14

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 35 Investment Banking Advisors 35 Capstone Partners MedianInvestment Banking EBITDA Advisors Margin Trends – SaaS & Cloud 130

 Median EBITDA margins have consistently decreased as companies reinvest to fuel growth  The majority of companies in CRM & Customer Service and ERP, Supply Chain & Commerce continue to invest heavily in sales and marketing, delaying profitability in favor of scale and market share  The License Software Leaders and other more mature segments like Cloud Computing / Storage already have operating leverage

EBITDA Margins EBITDA Margins by Segment

20% 18.9% 18.5% Licensed Software Leaders 38.4% 18% Cloud Computing / Storage 35.0% 15.7% 16% Vertical Market 24.0% 14.2% Cloud & IT Infrastructure 18.2% 14% 12.6% SaaS & Cloud 130 12.6% 12% Finance & Administration 11.9% Communication & Collaboration 11.1% 10% Marketing & Advertising 8.7% 8% Content Delivery Services 8.4% 6% Human Resources 5.4% Analytics / Business Intelligence 3.9% 4% Content Creation & Management 3.7% 2% CRM & Customer Service (4.2)% 0% ERP, Supply Chain & Commerce (4.5)% 2010 2011 2012 2013 2014 (20)% 0% 20% 40% 60% Based on data available as of 12/31/14 Based on data available as of 12/31/14

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 36 Investment Banking Advisors 36 Capstone Partners BestInvestment & Banking Worst Advisors Performers – SaaS & Cloud 130

High/Low LTM EV/Rev Multiples High/Low Revenue Growth

36.4 40x 125% 94.1 100% 35x 73.7 71.9 70.5 68.4 75% 30x 23.0 22.9 50% 25x 24.1 17.8 19.8 25% 20x 0% 15x (25)% -5.3 -6.6 10x -8.0 4.8 (50)% -29.6 5x 1.1 1.1 1.0 0.6 0.5 (75)% -45.3 0x

Based on data available as of 12/31/14 Based on data available as of 12/31/14

High/Low LTM EV/EBITDA Multiples High/Low EBITDA Growth 200.0x 176.7 300% 262.5

200% 150.0x 128.4 118.1 106.1 89.5 100% 13.1 100.0x 67.7 58.5 57.2 56.1 0% 50.0x -48.2 17.8 (100)% -54.5 -54.7 7.0 6.8 6.0 5.3 4.5 -94.6 -109.4 0.0x (200)%

Based on data available as of 12/31/14 Based on data available as of 12/31/14 Companies with EBITDA Margin <7.5% and EBITDA multiple above 20x deemed NA Companies with EBITDA Margin between -5.0% and 5.0% deemed NA

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 37 Investment Banking Advisors 37 Capstone Partners BestInvestment & Banking Worst Advisors Performers – SaaS & Cloud 130 (Continued)

High/Low LTM P/E Multiples High/Low EPS Growth 300x 258.7 300% 250x 131.8 122.9 150% 100.5 99.3 87.8 200x 170.0 164.3 10.4 0% 150x 132.7 132.6 (150)% 100x (87.5) (91.1)(100.0) (201.4) 50x 29.1 (300)% 12.1 11.8 10.3 9.7 6.8 (450)% 0x (399.3)

Based on data available as of 12/31/14 Based on data available as of 12/31/14 Companies with Net Margin <5.0% and P/E above 40x deemed NA Companies with Net Margin between -5.0% and 5.0% deemed NA

Stock Performance - 9/30-12/31 High/Low EBITDA Margin

120% 100% 62.1 48.8 44.7 44.2 44.1 96.1 12.6 90% 70.4 70.3 0% 59.0 60% 50.4 (100)% (68.0) 30% 6.1 (200)% (136.3) 0% (201.8)(220.8) (300)% (30)% (31.5) (32.3) (329.3) (60)% (39.6) (40.5) (41.1) (400)%

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 38 Investment Banking Advisors 38 Capstone Partners Investment Banking AdvisorsCapstone Partners Investment Banking Advisors

Notable Observations and Transaction Recommendations Profiles

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 39 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.39 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

Exact provides entrepreneurial businesses with information technology, delivering sophisticated business software solutions and high quality services. It develops industry- Deal Summary specific on-premises, hosted and cloud-based solutions in a Date: 10/9/14 wide variety of industry verticals. Founded in the 1980s by a Transaction Value: $828M group of freelance programmers, Exact rose to prominence in the Netherlands, and in recent years has shifted the focus Enterprise Value: $764M of its business model from desktop software to web-based % Sought: 100% applications. Consideration: Cash Apax Partners is one of the world’s leading private equity investment groups with more than 30 years of experience. Apax has advised funds that total over $40 billion around the Valuation Metrics world in aggregate, providing long-term equity financing to build and strengthen world-class companies. Apax Partners’ LTM Revenue Multiple: 3.2x considerable international software expertise will enable LTM EBITDA Multiple: 16.2x Exact to accelerate and expand its international growth LTM P/E Multiple: NA strategy in cloud and scale up its portfolio of cloud-based business software. Funds advised by Apax will also support Premium versus: Exact’s strategy for its on-premises business software, 1 day prior: 17.8% particularly with the development of hosted solutions and 1 week prior: 14.9% mobile functionality. 1 month prior: 13.8% The deal value of $828 million amounts to 3.2 times trailing revenue and a 40% premium to the average LTM closing Note: LTM and Premiums of last quarter prior to transaction share price. announcement date.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 40 Investment Banking Advisors 40 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

Backed by 20 years of ecommerce experience, Minnetonka-based Digital River is recognized as a leading global provider of Commerce-as-a-Service solutions. Deal Summary Companies of all sizes rely on Digital River’s multi-tenant, Date: 10/23/14 SaaS commerce, payments and marketing services to Transaction Value: $897M manage and grow their online businesses. In 2013, Digital River processed more than $30 billion in online transactions, Enterprise Value: $646M connecting B2B and B2C digital products and cloud service % Sought: 100% companies as well as branded manufacturers with buyers Consideration: Cash across multiple geographies, devices and channels. Siris Capital is a leading private equity firm focused on making control investments in data, telecommunications, Valuation Metrics technology and technology-enabled business service companies in North America. “With 20 years of global LTM Revenue Multiple: 1.7x ecommerce expertise, Digital River has a leading market LTM EBITDA Multiple: 18.1x position and significant global growth potential in the LTM P/E Multiple: 63.4x Commerce-as-a-Service market,” said Dan Moloney, Siris Capital Executive Partner. Recently, Digital River has Premium versus: divested two businesses, closed two data centers and 1 day prior: 52.7% completed a global head count reduction, and 1 week prior: 55.1% management is now leading with a focused strategy to 1 month prior: 78.6% drive customer acquisition and retention.

The deal, valued at $26 per share in cash, represents a Note: LTM and Premiums of last quarter prior to transaction premium of almost 50 percent of Digital River's prior day’s announcement date. closing stock price.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 41 Investment Banking Advisors 41 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

BrightRoll provides a Web, mobile and connected TV digital video advertising network and targeted analytics SaaS for Web publishers, marketers and businesses. The company Deal Summary processes in excess of 30 billion ad-related data points each Date: 11/11/2014 day with a robust customer base, currently serving 87 of the Transaction Value: $640M top 100 U.S. advertisers. % Sought: 100% Yahoo’s acquisition of BrightRoll marks its second largest Consideration: Cash deal since its purchase of Tumblr for $1 billion and represents a noteworthy focus on the burgeoning video advertising market. According to Yahoo chief executive Marissa Mayer, this will make Yahoo’s ad platform the largest in the US. Combing BrightRoll’s programmatic video ad marketplace Valuation Metrics with Yahoo’s app tracking analytics tools acquired through 2014 Revenue Multiple: 6.4x Flurry, will provide insightful analytics for advertisers and Trailing EBITDA Multiple: NA publishers alike. Yahoo will invariably integrate its inventory into BrightRoll’s platform to utilize its campaign optimization Multiple on $ Invested: 15.9x and inventory forecasting capabilities. BrightRoll’s method of aggregating high-quality publishers together into a unified network will allow advertisers to efficiently buy video ad space with scale across multiple websites. Investors Adams Street Partners; Comerica Bank; Felicis With net revenues estimated at $100 million for 2014, the Ventures; KPG Ventures; Scale Venture Partners; deal value equates to 6.4 times projected 2014 revenue. SoftTech VC; Stratim Capital; Trident Capital; True Having raised $40.2 million from well known investors, the Ventures sale represented 15.9 times total dollars invested.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 42 Investment Banking Advisors 42 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

Insurance giant Aetna Inc. has entered into an agreement to acquire Chicago-based bswift, which just last spring had taken $51 million investment after posting annual growth of Deal Summary 40 percent over the past four years. Aetna will pay $400 Date: 11/3/2014 million, which will be financed with available resources. The Transaction Value: $400M deal is expected to close in 2015. % Sought: 100% Bswift was founded in 2000 and has 380 employees. The Consideration: Cash company has experience in handling public, private and broker exchanges and serving employer groups of all sizes, according to a news release. Bswift is owned by its employees and numerous investors, including private equity firm Great Hill Partners. Bswift will operate as a separate Valuation Metrics business within Aetna under its existing leadership structure. Trailing Revenue Multiple: 10.0x Bswift CEO Rich Gallun commented, “Aetna will help Trailing EBITDA Multiple: NA expand the reach of our technology and benefits services with a goal of creating a true consumer marketplace for Multiple on $ Invested: 7.8x health care. We look forward to continuing the growth of our core business with employers, brokers, carriers and other organizations, in addition to adding more business by working with Aetna.” Investors Great Hill Partners The deal value of $400 million equates to more than 10 times trailing revenue and an impressive 7.8 x multiple on dollars invested.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 43 Investment Banking Advisors 43 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

Xtime is the leading retention solution for the retail automotive industry, based in Redwood City, CA. The Xtime Retention System delivers a premium customer experience Deal Summary for vehicle owners and increases retention for OEMs and Date: 11/11/2014 their dealerships. Xtime is the preferred provider for 21 major Transaction Value: $325M global automotive manufacturers around the world, and serves more than 6,000 dealerships. The deal is expected to % Sought: 100% close in 2015 and is the latest in a series of acquisitions on Consideration: Cash which Cox Automotive has spent more than $3 billion during the past five years.

Xtime has about 6,000 dealership customers. The company’s software helps dealers manage their service operations Valuation Metrics through electronic scheduling, marketing and customer Trailing Revenue Multiple: 8.1x check-in. Xtime processes more than 2.5 million service Trailing EBITDA Multiple: NA appointments each month for dealerships that generate about $6 billion annually for the stores, Xtime said in the Multiple on $ Invested: 9.2x acquisition release. With the Xtime acquisition, Cox Automotive will be able to offer software for the back end of dealerships to go along with a suite of software to help dealers attract and retain sales customers. Investors Venrock, Draper Fisher Jurvetson, Cedar Grove The deal value of $325 million equates to an impressive 8.1 Investments, Saints Capital, RPM Ventures, BDCA times trailing revenue more than a 9.2x multiple on dollars Venture (NasdaqCM:BDCV), Bessemer Venture invested. Partners, Lumia Capital

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 44 Investment Banking Advisors 44 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

Telerik provides .NET, JavaScript, and user interface mobile application development software and SaaS, as well as software development lifecycle management and testing Deal Summary software and SaaS, for businesses globally. Telerik brought in Date: 10/22/2014 more than $60 million in revenue and has experienced Transaction Value: $263M bookings growth rates of over 20% per year. % Sought: 100% Progress has 4 million users and 47,000 businesses in over 175 Consideration: Cash countries that run applications on the Progress OpenEdge platform and database. Through this acquisition, Progress will now provide comprehensive cloud and on-premise platform offerings that enable developers to rapidly create beautiful applications, driven by data for any web, desktop or mobile Valuation Metrics platform. The acquisition builds on Progress’ strong heritage Trailing Revenue Multiple: 4.4x of enabling developers to rapidly create data-driven, Trailing EBITDA Multiple: NA device and platform agnostic applications. Telerik’s offerings do not overlap and allow Progress to expand its reach to Multiple on $ Invested: NA other areas of development and specifically to a broader ecosystem of developers.

The deal value of $262.5 million equates to 4.4 times trailing Investors revenue. Summit Partners; EMEA IT Investments

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 45 Investment Banking Advisors 45 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

SilverSky is the leading independent cloud-based managed security services provider. SilverSky, the trading name for Perimeter Internetworking Corp, has about 5,500 customers Deal Summary in the finance, retail, healthcare, energy, critical Date: 10/21/2014 infrastructure and manufacturing sectors. Their Security-as-a- Transaction Value: $233M Service platform delivers cloud-based software and managed services, such as email protection services with % Sought: 100% advanced data loss prevention, network security services, Consideration: Cash and managed application services, that protect critical information simply and cost effectively.

SilverSky is a commercial cyber services and compliance provider, headquartered in New York, with operations in the Valuation Metrics US and the Philippines. The company currently employs Trailing Revenue Multiple: 3.1x * approximately 400 staff and has over 5,000 customers. Ian Trailing EBITDA Multiple: NA King, CEO BAE Systems added: “SilverSky’s cloud-based email and network security solutions complement our Multiple on $ Invested: 3.3x * existing portfolio and increase our presence in the United States, a very significant market for IT security. The enlarged (*) Estimate from Capstone research & industry sources business will offer customers an attractive suite of products and services to protect critical information and networks Investors from the rapidly growing threat of digital crime.” Connecticut Innovations, TTV Capital, McGovern Capital, Goldman Sachs Group, Bessemer, Stripes The deal value of $232.5 million equates to 3.1 times trailing Group revenue and a 3.3x multiple on dollars invested.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 46 Investment Banking Advisors 46 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

GAIN Capital Holdings entered into a definitive agreement to acquire City Index, a leading online trading firm specializing in contracts-for-difference, forex and UK spread Deal Summary betting, for approximately $125 million, or a net purchase Date: 10/31/2014 price of $89 million, including $36 million in cash on the Transaction Value: $125M company's balance sheet. The combination of GAIN Capital and City Index creates a global leader in online trading, % Sought: 100% operating two market-leading brands in GAIN's FOREX.com, Consideration: Cash / Stock a top retail forex brand globally. The combined company will service 235,000 retail customers in over 180 countries with annual trading volumes of more than $3 trillion.

The purchase price will consist of $20 million in cash, $60 Valuation Metrics million of convertible notes and the issuance of Trailing Revenue Multiple: 1.0x approximately 5.3 million GAIN shares. The total purchase Trailing EBITDA Multiple: 11.7x price of $118 million represents a $28 million premium above City Index's book value as of September 30, 2014. In addition Multiple on $ Invested: NA to the $36 million of cash on its books as of September 30, 2014, City Index also has $65 million of net operating losses which can be carried forward following the closing of the transaction. Investors None GAIN expects for this acquisition to become highly accretive by the fourth quarter following closing. The deal value of $125.1 million equates to 1.0 times trailing revenue and 11.7 times trailing EBITDA.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 47 Investment Banking Advisors 47 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

Vonage makes its second acquisition in the business telephony market as it seeks to maintain revenue growth outside of its early consumer success. Telesphere has 1,200 Deal Summary business customers, as well as a deeper service offering with Date: 11/5/2014 other elements of unified communications, going beyond Transaction Value: $114M the pure VoIP for small businesses. That likely accounts for some of the higher multiple in this deal in comparison to the % Sought: 100% 2013 acquisition of Vocalocity at 2.1 times trailing revenue. Consideration: Cash / Stock The broad abandonment of landlines for mobile phones has significantly impacted Vonage’s business model and performance. The company's revenue dropped by a few Valuation Metrics percentage points for consecutive years. In the year since buying Vocalocity, the target's revenue growth has Trailing Revenue Multiple: 2.9x * accelerated, contributing $24m to Vonage's top line and Trailing EBITDA Multiple: NM growing 52% year over year in the last quarter, compared Multiple on $ Invested: 2.3x with 38% growth a year ago. That is providing a positive impact to Vonage's rebounding growth rates. Before the (*) Estimate from Capstone research & industry sources acquisition of Telesphere, the company projected $886m in 2014 revenue, which would have beget its most successful Investors year since 2009.

Hawkeye Capital Management; Rally Capital The deal value of $114.0 million equates to 2.9 times trailing revenue and a 2.3x multiple on dollars invested.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 48 Investment Banking Advisors 48 Capstone Partners M&AInvestment Transaction Banking Advisors Spotlight

Acquiror Target Deal Rationale/Commentary

ChyronHego is a global leader in broadcast graphics creation, play-out and real-time data visualization, with a wide range of products and services for live television, news Deal Summary and sports production. After difficulties during 2012 including Date: 11/17/14 a delisting notice from NASDAQ, Chyron acquired Hego in Transaction Value: $117M March 2013 rebranding the company ChyronHego. Since then, ChyronHego has integrated their graphics and virtual- Enterprise Value: $112M tracking technologies into new offerings for the broadcast % Sought: 100% and digital markets and picked up several major contracts. Consideration: Cash These moves seem to have paid off as ChyronHego posted its first profit in three years during the Q2 2014.

The deal is technically a form of reverse triangular merger Valuation Metrics rather than an acquisition. ChyronHego will be merged into an entity controlled by Vector Capital, in order to create a LTM Revenue Multiple: 1.9x new corporate entity also be owned and controlled by LTM EBITDA Multiple: 20.6x Vector Capital. David Fishman, Managing Director at Vector LTM P/E Multiple: 56.4x commented “We are very excited about working with the talented group of employees at ChyronHego to take Premium versus: advantage of the significant long-term opportunities in 1 day prior: 4.1% broadcast graphics creation, play-out, and real-time data 1 week prior: 6.4% visualization.” 1 month prior: 11.9% The deal, valued at $2.82 per share in cash, represents a premium of 4% percent of ChyronHego’s prior day closing Note: LTM and Premiums of last quarter prior to transaction stock price. announcement date.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 49 Investment Banking Advisors 49 Capstone Partners Investment Banking AdvisorsCapstone Partners Investment Banking Advisors

Public Company Observations and Trading & Operating Recommendations Metrics

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 50 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.50 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners TradingInvestment Banking & OperatingAdvisors Metrics

($ in millions, except per share data) $ / Share M arket Enterprise % C hange Ent. Value/Rev. Ent. Value/EBITDA P rice/ EP S N T M / LT M Gro wth LT M M argin C o mpany N ame 12/ 31/14 C ap Value C ash D ebt LTM LQ LTM NTM LTM NTM LTM NTM R evenue EBITDA EPS Gro ss EBITDA N et

SaaS & Cloud 130 M ean 16,130 15,926 2,486 2,281 (7.1)% 7.5 % 6.3 x 4.8 x 24.2 x 21.1 x 46.5 x 35.1 x 20.2% 18.4% 20.7% 65.3 % 3.2 % (15.3)% SaaS & Cloud 130 M edian 1,124 990 109 9 (6.6)% 6.1 % 4.8 x 4.1 x 17.8 x 13.8 x 29.1 x 26.4 x 17.8% 13.1% 12.9% 67.5 % 12.6 % 6.1 %

Analytics / Business Intelligence Adobe 72.70 36,258 34,033 3,739 1,514 21.4 % 5.1 % 8.2 x 7.0 x 31.7 x 20.7 x 55.5 x 34.2 x 17.8% 53.4% 62.3% 85.0 % 25.9 % 16.1 % Bazaarvoice 8.04 627 573 81 27 1.5 % 8.8 % 3.2 x 2.8 x NA NA NA NA 12.7% 21.6% 12.8% 65.5 % (8.8)% (12.5)% comScore 46.43 1,588 1,574 40 26 62.3 % 27.5 % 5.0 x 4.4 x 23.0 x 19.4 x 34.9 x 30.5 x 13.4% 18.4% 14.5% 69.8 % 21.7 % 14.2 % Google 530.66 358,536 307,119 60,058 8,641 (5.3)% (9.8)% 4.5 x 4.1 x 12.5 x 10.4 x 21.5 x 18.4 x 10.2% 20.2% 16.8% 58.1 % 36.3 % 24.9 % Hottolink 9.35 91 82 15 6 (79.0)% (25.3)% 8.9 x NA 34.0 x NA 164.3 x NA NA NA NA 61.5 % 26.2 % 6.0 % iSentia 2.27 453 496 5 48 NA (11.9)% 4.8 x 4.9 x NA 14.6 x NA 20.1 x (2.3)% NA NA 34.1 % 4.4 % (0.5)% Mattersight 6.25 139 123 18 3 30.5 % 15.5 % 4.0 x 3.3 x NA NA NA NA 20.6% 17.6% NA 70.8 % (12.2)% (27.7)% New Relic 34.84 1,604 1,512 92 0 NA NA 17.8 x 12.2 x NA NA NA NA 45.3% NA NA 81.9 % (43.5)% (77.2)% Splunk 58.95 7,148 6,352 796 0 (14.2)% 6.5 % 15.7 x 11.8 x NA NA NA NA 33.2% NA NA 85.6 % 3.4 % 0.6 % Workiva 13.40 530 546 20 37 NA NA 5.1 x NA NA NA NA NA NA NA NA 71.4 % (30.0)% (32.3)% M ean 40,698 35,241 6,487 1,030 2.5 % 2.1 % 7.7 x 6.3 x 25.3 x 16.3 x 69.0 x 25.8 x 18.9% 26.2% 26.6% 68.4 % 2.3 % (8.8)% M edian 1,108 1,042 61 26 1.5 % 5.8 % 5.1 x 4.6 x 27.4 x 17.0 x 45.2 x 25.3 x 15.6% 20.2% 15.7% 70.3 % 3.9 % 0.0 %

Cloud & IT Infrastructure Citrix 63.80 10,270 10,808 747 1,285 0.9 % (10.6)% 3.5 x 3.3 x 12.5 x 12.0 x 19.6 x 17.9 x 6.5% 3.9% 9.1% 85.3 % 27.9 % 18.7 % FireEye 31.58 4,750 4,352 398 0 (27.6)% 3.3 % 12.8 x 7.6 x NA NA NA NA 67.6% 12.9% (2.4)% 59.1 % (64.0)% (76.5)% Hortonw orks 27.00 1,124 1,012 112 0 NA NA 22.9 x 14.4 x NA NA NA NA 58.4% NA 77.8% 34.3 % (220.8)% ######## LogMeIn 49.34 1,203 1,007 196 0 47.1 % 7.1 % 4.9 x 4.1 x 22.1 x 18.3 x 49.8 x 39.7 x 19.2% 20.9% 25.4% 87.6 % 22.0 % 11.9 % Proofpoint 48.23 1,839 1,767 233 161 45.4 % 29.9 % 9.8 x 7.8 x NA NA NA NA 26.5% NA (1.3)% 67.3 % (0.7)% (7.7)% Qualys 37.75 1,258 1,144 113 0 63.3 % 41.9 % 9.1 x 7.5 x 49.9 x 36.6 x 104.9 x 87.0 x 21.3% 36.2% 20.6% 77.8 % 18.2 % 10.6 % Rally Softw are 11.37 287 216 71 0 (41.5)% (5.3)% 2.6 x 2.1 x NA NA NA NA 22.5% 13.5% 9.1% 74.1 % (29.4)% (29.6)% Red Hat 69.14 12,986 12,581 1,115 711 23.4 % 23.1 % 7.3 x 6.4 x 27.9 x 24.0 x 44.3 x 39.3 x 13.3% 16.3% 12.9% 84.7 % 26.2 % 17.2 % ServiceNow 67.85 10,062 9,852 646 436 21.1 % 15.4 % 16.2 x 11.3 x NA 112.1 x NA NA 42.9% NA NA 63.3 % (1.0)% (3.3)% SolarWinds 49.83 3,769 3,559 210 0 31.7 % 18.5 % 8.7 x 7.1 x 19.8 x 14.8 x 28.8 x 25.5 x 22.4% 34.3% 12.9% 89.8 % 44.0 % 32.4 % Splunk 58.95 7,148 6,352 796 0 (14.2)% 6.5 % 15.7 x 11.8 x NA NA NA NA 33.2% NA NA 85.6 % 3.4 % 0.6 % Symantec 25.66 17,706 16,008 3,793 2,095 8.8 % 9.1 % 2.4 x 2.4 x 7.5 x 7.1 x 13.4 x 13.1 x (0.9)% 5.6% 2.2% 83.5 % 32.0 % 20.0 % Trend Micro 27.88 3,745 2,606 1,139 0 (20.3)% (17.6)% 2.5 x 2.7 x 7.0 x 7.8 x 18.6 x NA (5.3)% (10.6)% NA 82.9 % 36.5 % 19.9 % VMw are 82.52 35,524 29,930 7,094 1,500 (8.0)% (12.1)% 5.1 x 4.5 x 14.6 x 12.3 x 23.6 x 20.9 x 14.0% 18.7% 13.1% 85.3 % 35.2 % 26.1 % WANdisco 7.44 180 165 15 0 (63.5)% 50.4 % 17.4 x 10.0 x NA NA NA NA 73.7% 53.2% 35.0% 79.7 % (329.3)% (350.9)% M ean 7,457 6,757 1,112 413 4.8 % 11.4 % 9.4 x 6.9 x 20.2 x 27.2 x 37.9 x 34.8 x 27.7% 18.6% 17.9% 76.0 % (26.7)% (92.1)% M edian 3,769 3,559 398 0 4.8 % 8.1 % 8.7 x 7.1 x 17.2 x 14.8 x 26.2 x 25.5 x 22.4% 16.3% 12.9% 82.9 % 18.2 % 10.6 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 51 Investment Banking Advisors 51 Capstone Partners TradingInvestment Banking & OperatingAdvisors Metrics

($ in millions, except per share data) $ / Share M arket Enterprise % C hange Ent. Value/Rev. Ent. Value/EBITDA P rice/ EP S N T M / LT M Gro wth LT M M argin C o mpany N ame 12/ 31/14 C ap Value C ash D ebt LTM LQ LTM NTM LTM NTM LTM NTM R evenue EBITDA EPS Gro ss EBITDA N et

Cloud Computing / Storage Amazon 310.35 143,694 139,910 6,883 3,099 (22.2)% (3.7)% 1.6 x 1.4 x NA 18.7 x NA NA 17.4% 25.2% NA 28.6 % 7.0 % (0.3)% CenturyLink 39.58 22,589 43,006 734 21,151 24.3 % (3.2)% 2.4 x 2.4 x 6.0 x 6.2 x 16.5 x 15.7 x (1.0)% (3.6)% 4.8% 59.6 % 39.6 % 7.6 % Google 530.66 358,536 307,119 60,058 8,641 (5.3)% (9.8)% 4.5 x 4.1 x 12.5 x 10.4 x 21.5 x 18.4 x 10.2% 20.2% 16.8% 58.1 % 36.3 % 24.9 % IBM 160.44 158,781 194,915 9,570 45,704 (14.5)% (15.5)% 2.0 x 2.2 x 7.9 x 7.8 x 9.7 x 9.6 x (8.0)% 1.2% 1.2% 49.0 % 25.2 % 17.5 % Microsoft 46.45 382,881 318,258 88,542 23,919 24.2 % 0.2 % 3.5 x 3.2 x 9.7 x 9.2 x 17.5 x 16.0 x 8.1% 4.9% 8.8% 67.1 % 36.0 % 24.4 % Oracle 44.97 197,480 185,203 44,733 32,456 17.5 % 17.5 % 4.8 x 4.6 x 9.8 x 9.6 x 15.5 x 14.7 x 3.0% 1.4% 4.9% 61.5 % 48.8 % 34.1 % Rackspace 46.81 6,720 6,469 349 99 19.6 % 43.8 % 3.7 x 3.2 x 11.3 x 9.5 x 70.9 x 53.6 x 16.1% 18.9% 32.4% 67.5 % 33.1 % 5.5 % salesforce.com 59.31 37,425 38,849 926 2,351 7.5 % 3.1 % 7.7 x 6.3 x 49.8 x 34.5 x 131.8 x 93.3 x 22.2% 44.5% 41.2% 76.2 % 15.4 % 5.5 % Verizon 46.78 194,124 295,762 7,853 109,491 (4.8)% (6.4)% 2.4 x 2.3 x 6.8 x 6.6 x 14.2 x 12.9 x 3.2% 2.9% 9.8% 62.0 % 35.0 % 9.7 % M ean 166,914 169,943 24,405 27,434 5.1 % 2.9 % 3.6 x 3.3 x 14.2 x 12.5 x 37.2 x 29.3 x 7.9% 12.8% 15.0% 58.8 % 30.7 % 14.3 % M edian 158,781 185,203 7,853 21,151 7.5 % (3.2)% 3.5 x 3.2 x 9.7 x 9.5 x 17.0 x 15.9 x 8.1% 4.9% 9.3% 61.5 % 35.0 % 9.7 %

Communication & Collaboration 8x8 9.16 819 634 186 0 (9.8)% 37.1 % 4.3 x 3.6 x 41.6 x 30.5 x 61.1 x 51.7 x 21.1% 36.6% 18.2% 70.7 % 10.4 % 8.9 % Cisco 27.82 142,234 111,099 52,107 20,972 24.0 % 10.5 % 2.3 x 2.3 x 7.3 x 7.9 x 13.4 x 12.9 x 3.2% (7.4)% 3.9% 60.3 % 32.0 % 22.8 % Citrix 63.80 10,270 10,808 747 1,285 0.9 % (10.6)% 3.5 x 3.3 x 12.5 x 12.0 x 19.6 x 17.9 x 6.5% 3.9% 9.1% 85.3 % 27.9 % 18.7 % CounterPath 0.57 24 19 5 0 (47.4)% (40.5)% 1.6 x 1.3 x NA NA NA NA 25.4% 28.0% 61.7% 81.0 % (45.8)% (52.4)% Cybozu 3.16 145 115 29 0 (21.0)% (8.2)% 2.1 x NA 25.2 x NA NA NA NA NA NA 90.7 % 8.5 % 4.1 % Interactive Intel. 47.90 1,010 950 60 0 (28.9)% 14.6 % 2.8 x 2.6 x NA NA NA NA 8.9% (48.2)% NA 60.8 % 5.8 % 0.4 % IntraLinks 11.90 668 701 45 79 (1.7)% 46.9 % 2.8 x 2.6 x 19.5 x 17.9 x NA NA 6.8% 8.9% NA 72.8 % 14.3 % 1.6 % j2 Global 62.00 2,964 2,933 622 591 24.0 % 25.6 % 5.1 x 4.6 x 11.7 x 10.3 x 19.2 x 17.2 x 12.6% 12.9% 11.7% 82.6 % 44.1 % 26.5 % Jive Softw are 6.03 432 340 98 7 (46.4)% 3.4 % 2.0 x 1.7 x NA NA NA NA 16.4% 63.5% 37.3% 62.5 % (6.9)% (14.8)% LivePerson 14.10 771 683 87 0 (4.9)% 12.0 % 3.4 x 2.7 x 31.0 x 29.2 x 58.8 x 58.2 x 26.9% 6.2% 1.0% 75.1 % 11.1 % 6.6 % Microsoft 46.45 382,881 318,258 88,542 23,919 24.2 % 0.2 % 3.5 x 3.2 x 9.7 x 9.2 x 17.5 x 16.0 x 8.1% 4.9% 8.8% 67.1 % 36.0 % 24.4 % Premiere Global 10.62 500 782 30 313 (8.4)% (11.3)% 1.4 x 1.3 x 7.5 x 7.5 x 12.2 x 11.9 x 3.3% 0.9% 2.3% 58.1 % 18.5 % 7.2 % RingCentral 14.92 1,016 895 149 28 (18.8)% 17.4 % 4.4 x 3.4 x NA NA NA NA 28.4% 66.1% 38.7% 63.6 % (10.9)% (17.4)% Textura 28.47 725 660 66 1 (4.9)% 7.8 % 10.3 x 8.1 x NA NA NA NA 26.0% 128.4% 108.3% 84.2 % (22.0)% (31.0)% V-cube 13.09 120 113 13 6 (63.1)% (23.8)% 3.1 x NA 15.4 x NA 69.3 x NA NA NA NA 58.9 % 19.9 % 5.5 % M ean 36,305 29,933 9,519 3,147 (12.1)% 5.4 % 3.5 x 3.1 x 18.1 x 15.6 x 33.9 x 26.6 x 14.9% 23.4% 27.4% 71.6 % 9.5 % 0.7 % M edian 771 701 87 7 (8.4)% 7.8 % 3.1 x 2.7 x 14.0 x 11.2 x 19.4 x 17.2 x 12.6% 8.9% 11.7% 70.7 % 11.1 % 5.5 %

Content Creation & M anagement Adobe 72.70 36,258 34,033 3,739 1,514 21.4 % 5.1 % 8.2 x 7.0 x 31.7 x 20.7 x 55.5 x 34.2 x 17.8% 53.4% 62.3% 85.0 % 25.9 % 16.1 % Destiny Media 0.38 20 19 1 0 (81.0)% (22.8)% 5.4 x 4.6 x NA NA NA NA 17.6% 262.5% NA 100.0 % (5.2)% (18.8)% Kudelski 12.18 657 951 123 417 (20.2)% (6.4)% 1.0 x 1.0 x 7.7 x 7.7 x 16.0 x 14.3 x (4.2)% 0.5% NA 75.0 % 12.6 % 3.6 % Rovi 22.59 2,140 2,860 393 1,112 14.7 % 14.4 % 5.1 x 5.3 x 11.4 x 12.4 x 12.1 x 13.0 x (3.8)% (8.4)% (6.4)% 81.9 % 44.7 % 30.9 % Sumavision 2.01 1,371 1,110 264 4 22.8 % (19.2)% 17.4 x 10.2 x NA NA 258.7 x NA 70.5% NA NA 72.7 % (5.5)% 8.2 % Wix 21.00 800 706 94 0 (21.8)% 29.2 % 5.6 x 3.8 x NA NA NA NA 47.7% 71.1% 6.6% 81.5 % (23.0)% (30.4)% M ean 6,874 6,613 769 508 (10.7)% 0.0 % 7.1 x 5.3 x 16.9 x 13.6 x 85.6 x 20.5 x 24.3% 75.8% 20.9% 82.7 % 8.3 % 1.6 % M edian 1,086 1,031 194 210 (2.8)% (0.7)% 5.5 x 4.9 x 11.4 x 12.4 x 35.7 x 14.3 x 17.7% 53.4% 6.6% 81.7 % 3.7 % 5.9 % *Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 52 Investment Banking Advisors 52 Capstone Partners TradingInvestment Banking & OperatingAdvisors Metrics

($ in millions, except per share data) $ / Share M arket Enterprise % C hange Ent. Value/Rev. Ent. Value/EBITDA P rice/ EP S N T M / LT M Gro wth LT M M argin C o mpany N ame 12/ 31/14 C ap Value C ash D ebt LTM LQ LTM NTM LTM NTM LTM NTM R evenue EBITDA EPS Gro ss EBITDA N et

Content Delivery Services Akamai 62.96 11,207 11,096 711 600 33.4 % 5.3 % 6.0 x 5.1 x 13.7 x 11.9 x 27.0 x 23.9 x 17.7% 15.2% 12.9% 68.8 % 43.6 % 22.7 % Brightcove 7.78 251 231 22 1 (45.0)% 39.4 % 1.9 x 1.8 x NA NA NA NA 4.8% (94.6)% NA 65.6 % 5.1 % (1.0)% Digital River 24.73 788 538 386 135 33.9 % 70.3 % 1.4 x 1.4 x 12.3 x 10.0 x NA NA 4.3% 22.5% NA 65.8 % 11.7 % 3.3 % Limelight 2.77 273 173 101 0 39.9 % 18.6 % 1.1 x 1.1 x NA NA NA NA (6.6)% NA (35.5)% 48.9 % 2.0 % (9.0)% M ean 3,130 3,009 305 184 15.6 % 33.4 % 2.6 x 2.3 x 13.0 x 10.9 x 27.0 x 23.9 x 5.0% (19.0)% (11.3)% 62.3 % 15.6 % 4.0 % M edian 531 384 244 68 33.7 % 29.0 % 1.7 x 1.6 x 13.0 x 10.9 x 27.0 x 23.9 x 4.5% 15.2% (11.3)% 65.7 % 8.4 % 1.2 %

CRM & Customer Service eGain 5.18 138 145 5 12 (49.4)% (13.7)% 1.9 x 1.6 x NA NA NA NA 24.6% NA 32.4% 66.9 % (1.5)% (5.8)% Five9 4.48 219 184 83 49 NA (31.5)% 1.9 x 1.6 x NA NA NA NA 17.1% (7.1)% 63.4% 46.4 % (24.2)% (111.0)% Jive Softw are 6.03 432 340 98 7 (46.4)% 3.4 % 2.0 x 1.7 x NA NA NA NA 16.4% 63.5% 37.3% 62.5 % (6.9)% (14.8)% LivePerson 14.10 771 683 87 0 (4.9)% 12.0 % 3.4 x 2.7 x 31.0 x 29.2 x 58.8 x 58.2 x 26.9% 6.2% 1.0% 75.1 % 11.1 % 6.6 % salesforce.com 59.31 37,425 38,849 926 2,351 7.5 % 3.1 % 7.7 x 6.3 x 49.8 x 34.5 x 131.8 x 93.3 x 22.2% 44.5% 41.2% 76.2 % 15.4 % 5.5 % Zendesk 24.37 1,775 1,672 110 8 NA 12.9 % 15.1 x 10.2 x NA NA NA NA 48.4% 74.9% 44.4% 63.9 % (42.0)% (55.8)% M ean 6,793 6,979 218 404 (23.3)% (2.3)% 5.3 x 4.0 x 40.4 x 31.8 x 95.3 x 75.8 x 26.0% 36.4% 36.6% 65.2 % (8.0)% (29.2)% M edian 601 512 93 10 (25.6)% 3.3 % 2.7 x 2.2 x 40.4 x 31.8 x 95.3 x 75.8 x 23.4% 44.5% 39.3% 65.4 % (4.2)% (10.3)%

ERP, Supply Chain & Commerce Amber Road 10.22 260 223 41 4 NA (41.1)% 3.5 x 3.3 x NA NA NA NA 8.5% NA 79.6% 58.2 % (2.4)% (76.7)% blur Group 1.01 47 23 24 0 (89.3)% (23.5)% 3.3 x 1.9 x NA NA NA NA 71.9% 10.9% 22.8% 24.8 % (136.3)% (124.3)% Borderfree 8.96 285 163 122 0 NA (30.5)% 1.3 x 1.2 x NA NA NA NA 9.6% NA NA 25.6 % 4.2 % (0.0)% ChannelAdvisor 21.58 537 460 82 5 (48.3)% 31.6 % 5.6 x 4.4 x NA NA NA NA 28.2% 40.1% 25.9% 71.4 % (26.0)% (33.4)% Demandw are 57.54 2,089 1,830 259 0 (10.3)% 13.0 % 12.9 x 9.5 x NA NA NA NA 36.3% (6.4)% NA 73.5 % 6.9 % 1.7 % E2open 9.61 281 256 30 6 (59.8)% 3.2 % 3.3 x 2.8 x NA NA NA NA 18.2% (11.9)% (9.1)% 62.5 % (16.4)% (19.7)% Freelancer 0.53 232 214 19 0 (56.9)% (18.9)% 10.2 x NA NA NA NA NA NA NA NA 87.7 % (6.5)% (4.2)% SciQuest 14.45 398 273 124 0 (49.3)% (3.9)% 2.7 x 2.6 x NA 13.3 x 42.5 x 49.0 x 3.7% NA (13.2)% 69.8 % (1.7)% 8.5 % SLI Systems 0.94 57 47 10 0 (38.8)% 9.3 % 2.4 x 2.0 x NA NA NA NA 19.3% 7.8% 13.7% (26.0)% (29.5)% (27.8)% SPS Commerce 56.63 922 781 141 0 (13.3)% 6.5 % 6.5 x 5.3 x 46.2 x 39.8 x 94.4 x 84.9 x 22.7% 16.1% 11.2% 69.0 % 14.0 % 8.3 % M ean 511 427 85 1 (45.7)% (5.4)% 5.2 x 3.7 x 46.2 x 26.6 x 68.4 x 66.9 x 24.3% 9.4% 18.7% 51.6 % (19.4)% (26.8)% M edian 283 240 61 0 (48.8)% (0.4)% 3.4 x 2.8 x 46.2 x 26.6 x 68.4 x 66.9 x 19.3% 9.3% 13.7% 65.7 % (4.5)% (12.0)%

Finance & Administration Bottomline 25.28 1,009 964 197 151 (30.1)% (8.4)% 3.1 x 2.9 x 25.8 x 13.6 x 18.3 x 17.5 x 7.3% 89.5% 4.5% 57.0 % 11.9 % 16.3 % Intuit 92.19 26,323 25,233 1,589 499 20.8 % 5.2 % 5.5 x 5.7 x 15.0 x 18.5 x 26.8 x 35.7 x (2.5)% (18.8)% (24.9)% 85.3 % 36.8 % 21.9 % NetSuite 109.17 8,378 8,218 431 272 6.0 % 21.9 % 16.0 x 12.1 x 176.7 x 129.3 x NA NA 32.1% 36.7% NA 68.2 % 9.1 % 4.6 % Tangoe 13.03 506 459 49 1 (27.7)% (3.8)% 2.2 x 2.0 x 14.1 x 12.0 x 18.9 x 16.3 x 13.1% 17.4% 15.9% 54.1 % 15.7 % 13.7 % Xero 12.61 1,606 1,424 182 0 (52.6)% (25.1)% 23.0 x 14.5 x NA NA NA NA 59.0% (9.3)% (29.6)% 65.6 % (55.9)% (51.6)% M ean 7,564 7,259 490 185 (16.7)% (2.0)% 10.0 x 7.4 x 57.9 x 43.3 x 21.3 x 23.2 x 21.8% 23.1% (8.5)% 66.0 % 3.5 % 1.0 % M edian 1,606 1,424 197 151 (27.7)% (3.8)% 5.5 x 5.7 x 20.4 x 16.1 x 18.9 x 17.5 x 13.1% 17.4% (10.2)% 65.6 % 11.9 % 13.7 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 53 Investment Banking Advisors 53 Capstone Partners TradingInvestment Banking & OperatingAdvisors Metrics

($ in millions, except per share data) $ / Share M arket Enterprise % C hange Ent. Value/Rev. Ent. Value/EBITDA P rice/ EP S NTM / LTM Growth LT M M argin C o mpany N ame 12/ 31/14 C ap Value C ash D ebt LTM LQ LTM NTM LTM NTM LTM NTM R evenue EBITDA EPS Gro ss EBITDA N et

Human Resources Benefitfocus 32.84 839 820 61 42 (43.1)% 21.9 % 6.4 x 5.1 x NA NA NA NA 27.3% (15.8)% (13.2)% 34.8 % (31.0)% (39.7)% Callidus 16.33 794 766 40 12 18.9 % 35.9 % 6.0 x 5.0 x 55.3 x 43.7 x NA 71.8 x 20.1% 26.5% NA 59.9 % 10.8 % 5.0 % Cornerstone 35.20 1,885 1,882 228 224 (34.0)% 2.3 % 7.8 x 5.9 x NA NA NA NA 32.1% NA 27.5% 71.2 % 0.9 % (6.1)% Freelancer 0.53 232 214 19 0 (56.9)% (18.9)% 10.2 x NA NA NA NA NA NA NA NA 87.7 % (6.5)% (4.2)% Halogen 7.34 161 114 47 0 (40.7)% (14.5)% 2.1 x 1.8 x NA NA NA NA 19.2% (54.7)% (9.9)% 73.0 % (12.3)% (21.6)% Paycom 26.33 1,417 1,426 18 27 NA 59.0 % 10.4 x 8.0 x 67.7 x 45.4 x NA 100.7 x 29.9% 49.1% NA 83.0 % 15.4 % 4.2 % Personal & Informatik 86.68 653 633 20 0 24.6 % (4.6)% 6.9 x NA 19.5 x NA 30.9 x NA NA NA NA 69.3 % 35.4 % 23.1 % Saba 8.16 243 229 15 1 (33.4)% (39.6)% 1.9 x 1.6 x NA NA NA NA 17.1% 118.1% NA 62.9 % (13.3)% (3.7)% Solium 6.62 316 266 49 0 (6.3)% (14.4)% 3.8 x 3.5 x 13.9 x 13.6 x 32.8 x 31.6 x 10.4% 2.1% 3.8% 43.6 % 27.6 % 14.5 % Ultimate Softw are 146.82 4,165 4,064 109 8 (4.2)% 3.7 % 8.4 x 6.9 x 35.8 x 28.4 x 74.5 x 62.4 x 21.3% 26.1% 19.4% 59.6 % 23.5 % 12.0 % Upland 9.56 145 170 3 28 NA NA 2.8 x 2.3 x NA NA NA NA 21.6% (109.4)% 91.4% 65.2 % 5.4 % (83.2)% WageWorks 64.57 2,283 1,976 386 79 8.6 % 41.8 % 8.1 x 6.2 x 29.4 x 23.7 x 71.7 x 60.0 x 30.6% 24.2% 19.6% 62.8 % 27.5 % 13.4 % Workday 81.61 15,261 13,916 1,835 490 (1.9)% (1.1)% 19.8 x 13.5 x NA NA NA NA 46.9% NA 22.9% 65.1 % (1.7)% (10.2)% M ean 2,184 2,037 218 70 (15.3)% 6.0 % 7.3 x 5.4 x 36.9 x 31.0 x 52.5 x 65.3 x 25.1% 7.4% 20.2% 64.5 % 6.3 % (7.4)% M edian 794 766 47 12 (6.3)% 0.6 % 6.9 x 5.1 x 32.6 x 28.4 x 52.3 x 62.4 x 21.6% 24.2% 19.5% 65.1 % 5.4 % (3.7)%

Licensed Software Leaders IBM 160.44 158,781 194,915 9,570 45,704 (14.5)% (15.5)% 2.0 x 2.2 x 7.9 x 7.8 x 9.7 x 9.6 x (8.0)% 1.2% 1.2% 49.0 % 25.2 % 17.5 % Microsoft 46.45 382,881 318,258 88,542 23,919 24.2 % 0.2 % 3.5 x 3.2 x 9.7 x 9.2 x 17.5 x 16.0 x 8.1% 4.9% 8.8% 67.1 % 36.0 % 24.4 % Oracle 44.97 197,480 185,203 44,733 32,456 17.5 % 17.5 % 4.8 x 4.6 x 9.8 x 9.6 x 15.5 x 14.7 x 3.0% 1.4% 4.9% 61.5 % 48.8 % 34.1 % SAP 70.62 84,421 85,717 4,278 5,575 (18.0)% (2.0)% 3.9 x 3.8 x 9.7 x 9.8 x 15.1 x 16.2 x 2.9% (0.8)% (6.9)% 72.5 % 40.8 % 25.8 % M ean 205,891 196,023 36,781 26,913 2.3 % 0.0 % 3.5 x 3.5 x 9.3 x 9.1 x 14.4 x 14.1 x 1.5% 1.7% 2.0% 62.5 % 37.7 % 25.4 % M edian 178,130 190,059 27,152 28,188 1.5 % (0.9)% 3.7 x 3.5 x 9.7 x 9.4 x 15.3 x 15.4 x 2.9% 1.3% 3.1% 64.3 % 38.4 % 25.1 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 54 Investment Banking Advisors 54 Capstone Partners TradingInvestment Banking & OperatingAdvisors Metrics

($ in millions, except per share data) $ / Share M arket Enterprise % C hange Ent. Value/Rev. Ent. Value/EBITDA P rice/ EP S NTM / LTM Growth LT M M argin C o mpany N ame 12/ 31/14 C ap Value C ash D ebt LTM LQ LTM NTM LTM NTM LTM NTM R evenue EBITDA EPS Gro ss EBITDA N et

M arketing & Advertising Adobe 72.70 36,258 34,033 3,739 1,514 21.4 % 5.1 % 8.2 x 7.0 x 31.7 x 20.7 x 55.5 x 34.2 x 17.8% 53.4% 62.3% 85.0 % 25.9 % 16.1 % Bazaarvoice 8.04 627 573 81 27 1.5 % 8.8 % 3.2 x 2.8 x NA NA NA NA 12.7% 21.6% 12.8% 65.5 % (8.8)% (12.5)% Callidus 16.33 794 766 40 12 18.9 % 35.9 % 6.0 x 5.0 x 55.3 x 43.7 x NA 71.8 x 20.1% 26.5% NA 59.9 % 10.8 % 5.0 % Constant Contact 36.70 1,163 1,008 154 0 18.1 % 35.2 % 3.2 x 2.7 x 17.6 x 13.8 x 35.3 x 29.7 x 16.7% 27.1% 18.9% 72.5 % 18.0 % 10.6 % Criteo 40.42 2,426 2,117 324 15 18.2 % 20.1 % 2.6 x 4.7 x 25.5 x 15.7 x 50.4 x 39.3 x (45.3)% 62.4% 28.3% 35.6 % 10.2 % 6.2 % Google 530.66 358,536 307,119 60,058 8,641 (5.3)% (9.8)% 4.5 x 4.1 x 12.5 x 10.4 x 21.5 x 18.4 x 10.2% 20.2% 16.8% 58.1 % 36.3 % 24.9 % Hubspot 33.61 1,055 1,061 12 18 NA NA 10.2 x 7.7 x NA NA NA NA 32.0% 16.9% 83.2% 66.9 % (32.0)% (35.9)% Jive Softw are 6.03 432 340 98 7 (46.4)% 3.4 % 2.0 x 1.7 x NA NA NA NA 16.4% 63.5% 37.3% 62.5 % (6.9)% (14.8)% Marchex 4.59 197 116 81 0 (46.9)% 10.6 % 0.6 x 0.9 x 8.0 x 9.2 x 27.0 x 39.5 x (29.6)% (13.5)% NA 36.2 % 7.7 % 3.5 % Marin Softw are 8.46 296 224 76 4 (17.4)% (1.6)% 2.4 x 2.0 x NA NA NA NA 18.2% 26.0% 20.6% 63.5 % (22.7)% (29.4)% Marketo 32.72 1,348 1,236 119 6 (11.7)% 1.3 % 9.1 x 6.7 x NA NA NA NA 36.1% 2.2% 6.7% 65.4 % (17.2)% (22.8)% Millennial Media 1.60 223 146 76 0 (78.0)% (14.0)% 0.5 x 0.5 x NA NA NA NA 2.3% NA 25.7% 39.4 % (3.3)% (9.9)% Nasmedia 21.85 180 146 34 0 104.1 % 6.0 % 6.2 x 4.5 x 20.9 x 14.1 x 52.0 x 20.3 x 38.3% 48.4% 156.4% NA 29.9 % 14.9 % Rocket Fuel 16.12 666 624 112 70 (73.8)% 2.0 % 1.8 x 1.1 x NA NA NA NA 64.7% NA NA 48.3 % (0.9)% (4.3)% Rubicon Project 16.14 580 476 104 0 NA 37.6 % 4.3 x 3.2 x 49.3 x NA NA NA 32.5% (3.7)% NA 83.3 % 8.7 % 0.2 % salesforce.com 59.31 37,425 38,849 926 2,351 7.5 % 3.1 % 7.7 x 6.3 x 49.8 x 34.5 x 131.8 x 93.3 x 22.2% 44.5% 41.2% 76.2 % 15.4 % 5.5 % TechTarget 11.37 368 333 35 0 65.7 % 32.4 % 3.4 x 2.9 x 19.6 x 13.5 x 51.7 x 31.8 x 17.2% 45.3% 62.7% 72.7 % 17.1 % 7.5 % TubeMogul 22.55 672 626 48 2 NA 96.1 % 6.2 x 4.4 x NA NA NA NA 40.7% NA NA 69.0 % 3.6 % (0.2)% Yahoo! 50.51 47,851 37,848 11,194 1,191 24.9 % 24.0 % 8.2 x 8.4 x 26.5 x 29.4 x 29.2 x 46.4 x (3.2)% (9.9)% (37.1)% 71.9 % 30.9 % 38.2 % M ean 25,847 22,507 4,069 729 0.1 % 16.5 % 4.7 x 4.0 x 28.8 x 20.5 x 50.5 x 42.5 x 16.8% 26.9% 38.3% 62.9 % 6.4 % 0.1 % M edian 672 626 98 7 4.5 % 7.4 % 4.3 x 4.1 x 25.5 x 14.9 x 50.4 x 36.7 x 17.8% 26.3% 27.0% 65.5 % 8.7 % 3.5 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 55 Investment Banking Advisors 55 Capstone Partners TradingInvestment Banking & OperatingAdvisors Metrics

($ in millions, except per share data) $ / Share M arket Enterprise % C hange Ent. Value/Rev. Ent. Value/EBITDA P rice/ EP S N T M / LT M Gro wth LT M M argin C o mpany N ame 12/ 31/14 C ap Value C ash D ebt LTM LQ LTM NTM LTM NTM LTM NTM R evenue EBITDA EPS Gro ss EBITDA N et

Vertical M arket ACI Worldw ide 20.17 2,318 3,211 60 953 (6.9)% 7.5 % 3.2 x 2.9 x 11.9 x 11.6 x 26.7 x 24.7 x 8.9% 2.7% 7.9% 56.0 % 26.8 % 8.8 % Advent 30.64 1,584 1,802 37 255 (12.3)% (2.9)% 4.6 x 4.4 x 13.7 x 13.1 x 21.9 x 20.2 x 4.6% 4.8% 8.5% 72.0 % 33.4 % 19.0 % Athenahealth 145.70 5,550 5,658 105 213 8.3 % 10.6 % 8.0 x 6.5 x 40.2 x 35.5 x 113.8 x 124.7 x 23.0% 13.1% (8.8)% 59.3 % 19.8 % 7.0 % Blackbaud 43.26 1,959 2,076 54 171 14.9 % 10.1 % 3.8 x 3.3 x 15.8 x 15.2 x 34.3 x 30.8 x 13.7% 4.0% 11.5% 52.0 % 24.0 % 10.5 % Castlight Health 11.70 1,056 874 182 0 NA (9.6)% 24.1 x 12.4 x NA NA NA NA 94.1% 9.7% 33.4% 26.8 % (201.8)% (388.3)% Cvent 27.84 1,151 968 183 0 (23.5)% 9.7 % 7.2 x 5.8 x 57.2 x 55.6 x 132.6 x NA 24.9% 3.0% (48.6)% 70.0 % 12.7 % 6.7 % Dealertrack 44.31 2,404 2,986 146 729 (7.8)% 2.1 % 4.0 x 3.0 x 18.0 x 13.6 x 32.3 x 25.0 x 33.4% 32.0% 29.5% 40.0 % 22.3 % 9.2 % Descartes 14.90 1,124 974 150 0 11.4 % 8.1 % 5.8 x 5.2 x 19.5 x 17.1 x 28.8 x 30.2 x 12.6% 13.9% (4.9)% 67.8 % 29.9 % 21.3 % Earthport 0.68 324 309 16 1 14.3 % (2.8)% 16.7 x 9.9 x NA NA NA NA 68.4% 106.1% 64.8% 73.3 % (68.0)% (47.2)% Ebix 16.99 623 640 49 65 15.5 % 19.8 % 3.1 x 2.8 x 7.4 x 7.5 x 10.3 x 10.4 x 10.0% (1.1)% (0.8)% 80.5 % 42.3 % 30.9 % Ellie Mae 40.32 1,159 1,074 86 1 50.1 % 23.7 % 7.4 x 5.7 x 26.5 x 32.3 x 43.8 x 51.3 x 29.9% (17.9)% (14.5)% 72.7 % 27.9 % 18.5 % Envestnet 49.14 1,688 1,612 106 30 21.9 % 9.2 % 4.9 x 3.9 x 32.0 x 22.5 x 69.2 x 48.6 x 26.4% 42.6% 42.4% 26.4 % 15.4 % 8.0 % Fleetmatics 35.49 1,340 1,203 161 25 (17.9)% 16.4 % 5.5 x 4.4 x 18.3 x 13.9 x 39.9 x 30.0 x 25.8% 31.6% 33.1% 75.3 % 30.3 % 15.7 % GrubHub 36.32 2,961 2,683 278 0 NA 6.1 % 11.7 x 8.7 x 42.1 x 28.6 x 170.0 x 76.3 x 33.8% 47.2% 122.8% 64.6 % 27.8 % 7.6 % Higher One 4.21 201 271 33 103 (56.9)% 70.4 % 1.2 x 1.2 x 4.5 x 4.6 x 6.8 x 7.4 x 6.3% (3.4)% (7.7)% 54.2 % 27.7 % 13.6 % IDOX 0.62 221 248 10 37 15.1 % (8.8)% 2.4 x 2.6 x 10.0 x 9.1 x 17.9 x 13.3 x (5.2)% 9.5% 34.3% 90.3 % 24.2 % 12.4 % JUST EAT 4.83 2,741 2,478 263 0 NA 0.9 % 11.8 x 9.4 x 56.1 x 39.6 x 132.7 x 73.2 x 25.6% 41.6% 81.2% 89.8 % 21.1 % 9.8 % Linx 19.00 888 789 116 16 (6.3)% (8.9)% 5.6 x 5.1 x 19.8 x 17.7 x 29.1 x 26.4 x 10.1% 12.3% 9.9% 71.8 % 28.2 % 21.6 % Medidata Solutions 47.75 2,590 2,570 258 238 (21.1)% 7.8 % 8.0 x 6.6 x 37.1 x 27.7 x 67.3 x 55.0 x 22.1% 33.7% 22.3% 74.6 % 21.7 % 12.3 % Mix Telematics 0.26 209 135 80 5 (44.6)% (32.3)% 1.1 x 1.1 x 5.3 x 5.9 x 11.8 x 12.7 x 3.6% (9.9)% (6.8)% 67.7 % 21.6 % 15.3 % NIC 17.99 1,175 1,069 106 0 (27.7)% 4.5 % 4.0 x 3.7 x 15.2 x 13.3 x 32.1 x 27.5 x 9.0% 14.5% 16.8% 42.6 % 26.3 % 13.7 % OPOWER 14.23 709 572 138 0 NA (24.5)% 4.8 x 3.9 x NA NA NA NA 23.7% (54.5)% (48.5)% 66.6 % (11.8)% (17.8)% Playtech 10.74 3,152 2,651 501 0 (12.0)% (7.8)% 4.8 x 4.7 x 10.8 x 10.7 x 15.2 x 14.2 x 1.1% 0.8% 6.7% 100.0 % 44.2 % 37.5 % Q2 Holdings 18.84 645 555 90 1 NA 34.6 % 7.6 x 5.7 x NA NA NA NA 33.0% 14.4% 4.8% 40.9 % (17.3)% (24.5)% RealPage 21.96 1,729 1,737 31 39 (6.1)% 41.7 % 4.4 x 4.0 x 22.2 x 23.6 x 47.7 x 51.4 x 9.3% (5.7)% (7.1)% 58.1 % 19.8 % 8.9 % Sabre 20.27 5,379 8,309 158 3,088 NA 13.1 % 2.8 x 2.7 x 12.3 x 8.7 x 26.3 x 18.1 x 1.9% 40.4% 45.8% 36.9 % 22.8 % 7.8 % Solera 51.18 3,492 4,858 501 1,867 (27.7)% (9.2)% 4.6 x 4.1 x 11.3 x 10.0 x 17.6 x 15.4 x 12.4% 12.6% 14.0% 67.8 % 41.1 % 19.1 % SS&C 58.49 4,894 5,420 75 602 32.2 % 33.3 % 7.2 x 6.4 x 17.4 x 15.6 x 25.8 x 23.0 x 13.5% 11.2% 12.1% 46.2 % 41.6 % 26.4 % Temenos 35.74 2,360 2,522 137 300 26.3 % (6.0)% 5.3 x 4.8 x 15.1 x 13.4 x 26.7 x 24.3 x 10.2% 12.3% 10.0% 73.0 % 34.8 % 19.5 % Textura 28.47 725 660 66 1 (4.9)% 7.8 % 10.3 x 8.1 x NA NA NA NA 26.0% 128.4% 108.3% 84.2 % (22.0)% (31.0)% TrueCar 22.90 1,767 1,665 113 11 NA 27.6 % 8.7 x 6.3 x NA 74.8 x NA NA 37.4% NA 122.5% 91.3 % (4.1)% (10.5)% Urbanise 0.73 160 160 1 0 NA 20.7 % 36.4 x NA 58.5 x NA NA NA NA NA NA 85.4 % 62.1 % 32.9 % Yodlee 12.20 357 362 7 12 NA NA 4.3 x 3.6 x NA NA NA NA 20.3% 11.7% NA 62.2 % 5.4 % (2.0)% M ean 1,777 1,912 130 265 (2.7)% 8.5 % 7.4 x 5.1 x 23.0 x 20.8 x 47.2 x 34.8 x 20.9% 18.1% 22.4% 64.9 % 13.0 % (3.3)% M edian 1,340 1,203 106 16 (6.2)% 7.8 % 5.3 x 4.6 x 17.7 x 14.5 x 29.1 x 25.7 x 17.0% 12.3% 11.5% 67.8 % 24.0 % 10.5 %

*Sorted alphabetically within market segment

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 56 Investment Banking Advisors 56 Capstone Partners Investment Banking AdvisorsCapstone Partners Investment Banking Advisors

Observations Technology & and RecommendationsTelecom Team

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 57 Investment Banking Advisors WORLD CLASS WALL STREET EXPERTISE.57 BUILT FOR THE MIDDLE MARKET.TM Capstone Partners TechnologyInvestment Banking Advisors & Telecom Team

DAVID MICHAELS Managing Director, Head of Technology & Telecom Group Phone: (858) 926-5950 Email: [email protected] David Michaels is a Managing Director of Capstone where he is responsible for managing the firm’s Technology & Telecom Group (TTG). David founded SagePoint Advisors in 2008, a boutique investment banking firm focused on providing merger, acquisition and strategic advisory services to growth companies in the technology and telecom sectors. Prior to founding SagePoint, David was a Co-Founder, Partner and Managing Director at Montgomery & Co., a leading investment bank focused on serving emerging-growth technology companies and their venture backers. David co-founded Montgomery’s investment banking business in 1996 and played an instrumental role in building the business to over $50 million in revenues and 80 employees. Mr. Michaels also ran the firm’s Communications and Digital Media Technology practice areas for several years prior to his departure. David has intimate knowledge of the strategic landscape, market dynamics and technology underpinnings of several high technology market segments including Mobile Software & Services, Consumer Internet, E-Commerce, Enterprise SaaS, Cloud & Infrastructure Software and Consumer, IT & Telecom Hardware. Prior to joining Montgomery in 1994, David worked at Bankers Trust Corporate Finance Department, where he helped execute merger and acquisition assignments. Prior to that, Mr. Michaels worked as a structural engineer at General Dynamics, Mr. Michaels received an M.B.A. in entrepreneurship from the Anderson School of Management at UCLA and holds a B.S. in Mechanical Engineering from the University of Michigan.

JOHN SNEAD Managing Director, Head of International Phone: 44 (0)7979 704302 Email: [email protected]

John Snead is responsible for managing the firm’s international operations as Managing Director of Capstone Grenport Ltd (CGL), focusing on the European technology and private equity markets. In his capacity, John is instrumental the firm’s cross border M&A and financing activities. He joins Capstone with 25 years of experience in in the investment banking and financial markets both in London and Silicon Valley. For the seven years prior to joining Capstone, John was the founder and Managing Partner of Grenport Limited, a London-based investment banking boutique serving the strategic and transaction needs of emerging technology companies. Prior to Grenport, John was a Managing Director in Kroll’s corporate finance group. He has also served as a senior professional at leading financial advisory firms such as Arthur Andersen, KPMG and Morgan Grenfell. John is particularly experienced in the technology sector where he has advised on more than 80 transactions, primarily in the software and IT services sectors. John holds an MBA, CFA, CF qualifications and is regulated by ICAEW.

Capstone Partners CapstoneInvestment BankingPartners Advisors Over a Decade of M&A Excellence 58 Investment Banking Advisors 58 Capstone Partners TechnologyInvestment Banking Advisors & Telecom Team

JOHN FERRARA President and Managing Partner Phone: (617) 619-3325 Email: [email protected]

John serves as the Managing Partner of Capstone, responsible for the firm’s investment and merchant banking operations, as well as managing client transactions. During his tenure as Managing Partner, Capstone has completed three acquisitions to expand the firm’s presence from Boston to include seven offices internationally, culminating in the “Global Investment Banking Boutique of the Year” award in 2012. Over his 25+ year career in mergers & acquisitions, venture capital and management consulting, John has executed well over 150 transactions and related engagements. Prior to 2002, when he acquired the practice he initially founded from Arthur Andersen to form Capstone, John served as a Regional Managing Partner with Andersen Corporate Finance LLC. While with Andersen, John held various national and global leadership positions. He started his career in Lehman Brothers' M&A group in New York, London and Riyadh, later becoming a founding member of Rodman & Renshaw's M&A practice in New York. After a break to compete in Australia's semi-professional baseball league, John joined The Deloitte Consulting Group in Los Angeles to focus on turnaround and interim management engagements. John has been recognized as “Investment Banker of the Year” in 2012, “Deal Maker of the Year” in 2010 and received the “40 Under 40” award for entrepreneurial excellence in 2006. He is the founder of the Spirit Triumph Cancer Foundation, author of the children’s book "Beyond the Waterspout" and former owner in the Holyoke Sox, a baseball franchise in the NECBL. John earned his MBA from The Anderson School at UCLA and the London School of Economics. He holds dual BA degrees from Wesleyan University and is qualified as a General Securities Principal.

TEAK MURPHY Vice President, Technology & Telecom Group Phone: (310) 746-5006 Email: [email protected] Teak joins Capstone as a Vice President in the Technology & Telecom Group, based out of San Diego. Prior to Capstone’s acquisition of SagePoint Advisors, Teak worked at SagePoint as a Senior Associate advising technology companies on mergers, acquisitions and strategic capital raises. Prior to joining SagePoint, Teak worked as a Senior Associate with Enterprise Partners Venture Capital, the largest Southern California based VC firm, where he evaluated investment opportunities and worked closely with senior management and board members to successfully grow portfolio companies. Prior to Enterprise Partners, Teak worked as an Associate in technology investment banking at Montgomery & Co. where he spent three years working closely with SagePoint's founder David Michaels on buy-side and sell-side M&A transactions. Prior to Montgomery, Teak worked at Cowen & Co. advising technology companies on M&A and IPO transactions. Teak's experience working on fund raising, mergers and acquisitions, and initial public offerings as both an advisor and investor provides unique insight into the needs of venture-backed companies. Teak graduated from the University of Southern California with honors, receiving a B.S. in Business Administration/Finance.

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BRANDON OVERMYER Associate, Technology & Telecom Group Phone: (310) 929-5177 Email: [email protected] Brandon is an Associate in the Technology & Telecom Group, working closely with clients to execute and optimize mergers, acquisitions and strategic capital raises. Prior to joining Capstone, Brandon was an Analyst in technology investment banking with ArchPoint Partners in San Francisco, supporting the senior team on middle market domestic and cross-border technology transactions. Brandon has previously worked in varying roles with Apple, LG and a number of startup ventures in addition to civil litigation practice. Brandon received his BA from University of Florida, graduating with distinction in three years. He received his JD from Baylor University School of Law and is a member of the Florida Bar.

HIROKI HIGASHIHARA Analyst, Technology & Telecom Group Phone: (310) 929-7415 Email: [email protected] Hiroki works closely with senior team members of the Technology & Telecom Group, as an Analyst, to execute various corporate financing transactions. Prior to joining Capstone, Hiroki interned at an investment management firm, Sage Capital Advisors, conducting back-testing models and investment performance analyses. He also interned at an Internet Security software company, gaining exposure to corporate financial planning and analysis. Hiroki received a BS in Management Science along with a minor in Accounting from University of California, San Diego. Hiroki graduated as a team member of the Thurgood Marshall Honors Program.

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