Automation, Interoperability, and Security Drive Appdev & Deployment

AUTOMATION, INTEROPERABILITY, AND SECURITY DRIVE APPDEV & DEPLOYMENT GROWTH APPLICATION DEVELOPMENT & DEPLOYMENT INDUSTRY UPDATE | MARCH 2021

3 Application Development & Deployment Automation, Interoperability, and Security Drive AppDev & Deployment Growth

TABLE OF CONTENTS KEY INDUSTRY TAKEAWAYS

 Key Industry Takeaways Capstone Headwaters’ Technology, Media, and Telecom (TMT) Group is pleased  Industry Outlook to share its Application Development & Deployment report. Through our ongoing conversations with active industry players and analysis of trends during  Key Trends & Drivers COVID-19, we have identified several key takeaways below, followed by an in-  M&A Overview depth overview of industry dynamics on the following pages.  Q&A With Silversmith Capital 1. COVID-19 and the resulting need to work from home (WFH) are driving  Buyer Universe enterprises to develop more digital products and services, allowing  Notable Transactions consumers and workers to learn, shop, communicate and work remotely – which makes AppDev critical to success across the business spectrum.  Select Transactions  Financing Activity 2. Venture investing in AppDev and DevOps companies soared in 2020 with nearly $7.5 billion invested in over 400 transactions, a 23% increase  Public Company Data compared to 2019.  Report Contributors 3. M&A transaction growth was even more explosive in 2020 with a 70%  Firm Track Record increase in closed deals from 2019 to 2020.

4. Collaboration has been a key theme in AppDev for 2020 and beyond, with exploding demand for communications tools for developers and workers alike, resulting in major acquisitions like Salesforce’s purchase of Slack for nearly $28 billion.

5. The global trend toward digitization is driving demand for more and more software developers, which creates greater opportunities for AppDev providers to sell more product into growing IT departments across the business landscape.

Jesse Betzner Vice President, David DeSimone David MichaelsConsumer & Retail AppDev & Deployment Head of TMT Managing Director Managing Director 617-619-3324 858-926-5950 [email protected] [email protected]

2 Application Development & Deployment | March 2021

INDUSTRY OUTLOOK

Although COVID-19 disrupted the global economy, it has expedited the adoption of innovative and efficient technological solutions, transforming digital capabilities from advancements to requirements. To stay relevant and competitive in this new environment, executives, on average, have accelerated the digitization of internal and supply-chain operations by three to four years and digitally enabled their suite of products and services seven years ahead of schedule, according to McKinsey’s Global Survey of Executives.1

The Application Development (AppDev) & Deployment industry has provided the necessary software and services for digital solutions amid the pandemic, resulting in an estimated 22.5% compound annual growth rate (CAGR) to reach a global market size of $697.5 billion by 2027, according to ReportLinker.2 Software developers have turned to secure, automated, and interoperable AppDev tools to scale productivity and meet global demand. Top players in the Rapid Application Development (RAD) subsector offering low-code or automated development tools, experienced escalated revenue gains. For example, Anaplan, Inc. (NYSE:PLAN), reported an increase of 25% in total revenue in 2020 year-over-year (YOY) and a 48% increase in annual subscription revenue from its cloud-based development applications, according to its Q4 2021 earnings conference call.3

While the shift to cloud-based software has allowed for greater interoperability, it has increased susceptibility to data breaches, with 27 billion records exposed in the first half of 2020, according to Security Magazine.4 Network and cybersecurity providers have responded to this vulnerability with software and services tailored to cloud. Notably, Tenable Holdings, Inc. (NAS:TENB), reported $440.2 million in total annual revenue for 2020, with recurring revenue from subscription arrangements and cloud-based security solutions, such as Tenable.io., representing 93.6%. “In the end, our commitment to product innovation, focus on cloud and matured prioritization capabilities drove the wind. We also officially launched frictionless assessment globally for the Tenable.io in AWS marketplace in the fourth quarter. Frictionless assessment continuously provides accurate visibility across all cloud-based assets via an easy to use, low risk approach that delivers quick time to value,” said Tenable CEO, Amit Yoran during its Q4 2020 earnings call.5 AppDev & deployment companies have scaled organically to meet demand through technological innovations and new offerings, and through mergers and acquisitions (M&A), acquiring software and related service assets. The industry experienced a surge in M&A transactions due to the global impact of COVID-19 and several trends altering the M&A landscape (see page five). On account of these alterations, and the trends highlighted on the following pages, Capstone expects further industry growth with healthy levels of M&A throughout 2021.

David DeSimone, Managing Director

“The AppDev sector has incredible tailwinds from the digitization of the global economy which, we believe, will continue to drive outsized growth in venture investing and M&A volume for the foreseeable future.”

For additional industry insights and information on Application Development and Deployment Debt, Equity, and M&A advisory services please contact Managing Director David DeSimone at [email protected] or 617-619-3324.

3 Application Development & Deployment | March 2021

KEY TRENDS & DRIVERS

INCREASE IN GLOBAL IT CLOUD SAAS extends beyond internal processes, with data sharing 16.1% SPENDING FORECASTED FOR 2021 capabilities for third-party vendors and partners in the supply chain. The Software Services segment of AppDev & Deployment experienced rapid growth in response to companies Top public cloud providers, such as Amazon Web Services requiring improved functionality, user accessibility and (AWS) and Google Cloud Platform, continue to expand support. As a result, service providers rose 33% as targets cloud-based offerings to consolidate enterprise user for M&A in 2020, with businesses embedding these requirements. Of note, AWS announced the launch 180 services as part of their software development strategy. new services and features, including Amazon DevOps In addition to the acquisition of traditional service Guru this past December, according to Amazon’s providers, spending on cloud software-as-a-service (SaaS) (NAS:AMZN) Q4 2020 Investor Relations Report.8 As a is expected to increase by 16.1% in 2021, as it unifies fully managed operations service, DevOps Guru software plus services catering to companies’ full-service continuously monitors cloud-based software applications expectations, according to Gartner.6 alerting developers to operational problems and reporting application metrics. Global IT Spending on Cloud SaaS LOW-CODE COMPOUND ANNUAL $200 31.1% GROWTH RATE, 2020-2025 $175 Low-code software platforms are in high demand as the $138.3 $150 software developer labor shortage persists. For $117.8 $125 $102.0 $101.5 companies with traditional developers, low-code $100 platforms automate simple tasks, increasing the $75 bandwidth of software development and IT operations. Low-code platforms are especially valuable to businesses $50

without in-house software development, as they provide a U.S. Dollars in Billions in U.S.Dollars $25 graphical user interface suited for non-technical $0 employees. This has made low-code providers attractive 2019 2020 2021 2022 targets for M&A, notably Amsterdam-based Uniface B.V. Source: Gartner was acquired by Rocket Software, Inc., enabling mission- critical applications to reach the market faster through the INCREASE IN ENTERPRISE IT CLOUD user experience-focused platform (February, Undisclosed). 18.4% SPENDING PROJECTED FOR 2021 The current global Low-Code Development market value is $13.5 billion, and with a 31.1% compound annual growth rate (CAGR) is forecasted to reach $52.1 billion by Enterprise information technology (IT) spending on public 2025, according to Research and Markets.9 cloud computing is expected to rise through 2021, due to increased appetite for on-demand software development and deployment. On the global scale, cloud spending is Global Low-Code Development Market projected to grow by 18.4% in 2021 to total $304.9 billion, according to Gartner. $70

$60 $52.1 Cloud-hosted infrastructure has gained attention among $50 developers as they seek automated solutions for software $39.7 development and deployment. For small to medium- $40 sized businesses, the cloud offers a centralized space with $30.3 the aggregation of software development, testing, and $30 $23.2 $17.7 deployment tools to increase the return on investment $20 $13.5

(ROI) and improve internal operational efficiency. To Billions in U.S.Dollars $10 eliminate dependency on a single cloud provider, 93% of enterprises have adopted multi-cloud strategies, $0 according to Flexera’s 2020 State of the Cloud survey.7 2020 2021 2022 2023 2024 2025 The benefits of utilizing multiple public and private clouds Source: Research and Markets

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M&A OVERVIEW

The AppDev & Deployment industry has experienced M&A Activity exponential growth due to the acceleration of digital 2019 2020 2021 transformations among businesses and consumers. M&A 80 activity increased by 78% in 2020 year-over-year (YOY), with 132 deals announced or closed compared to 74 deals 55 in 2019. On a quarter-over-quarter basis, transaction 60 volume doubled in Q4 2020 (55 deals), compared to Q3

2020 (27 deals). M&A activity in 2021 is expected to Transactions 40 33 34 outpace 2020, with a 36% increase in transaction volume of 27 25 25 in 2021 year-to-date (YTD) (34 deals) compared to the 18 16 17 15

prior year (25 deals). 20 Number Number M&A deals in the U.S. and Canada accounted for 54% (72 0 deals) of the AppDev & Deployment total transaction Q1 Q2 Q3 Q4 YTD Q1 volume in 2020, with 46% (60 deals) of targets headquartered in Europe. In 2019, 62% of deals were based in the U.S. and Canada, 35% in Europe, and 3% in other locations. This rise in European M&A activity is largely attributed to COVID-19’s negative impact on the European economy, with the Gross Domestic Product (GDP) falling ~7% in 2020, according to PitchBook’s 2020 2020 Buyer Breakdown Annual European M&A Report.10 Similar to North America, remote work propelled the adoption of digital solutions in an attempt to revive the European economy. STRATEGIC 20.6% 21.4% As a result, ~22% of all 2020 European M&A transactions Public came from the Technology industry, an increase of 4% Private YOY. Software providers with recurring revenue streams, 7.1% asset-light business models, and strong consumer bases FINANCIAL proved to be especially attractive targets, accounting for Platform ~57% of total deal volume within the European Add-on Technology industry. 50.8%

In addition to the geographic M&A shift, there has been a 5% rise YOY in financial add-on acquisitions, with private equity (PE) firms applying buy-and-build strategies to existing AppDev & Deployment portfolio companies, a trend mirroring the greater M&A market. Notably, Software & Services M&A Breakdown Silversmith Capital Partners has completed six add-on Software Services acquisitions on behalf of Appfire Technologies, Inc., a 100% provider of applications for software development teams (see conversation on pages six and seven). 25.0% 25.7% 75% 58.4% Historically, the Software segment of the AppDev & Deployment industry constitutes the majority of M&A transactions. As software providers focus on deploying, 50% monitoring, and testing their platforms to ensure 75.0% 74.3% efficiency and interoperability, providers offering these 25% services have piqued strategic buyer interest, causing a 41.6%

33% increase in software service acquisitions in 2020 YOY. Acquisitions of Percentage Of note, Cognizant (NAS:CTSH), acquired Magenic 0% Technologies, Inc., provider of quality assurance and 2018 2019 2020 custom development strategy services, to strengthen their digital engineering team (January 2021, Undisclosed). Source: Capital IQ, PitchBook, FactSet, and Capstone Research 5 Application Development & Deployment | March 2021

Q&A WITH SILVERSMITH CAPITAL PARTNERS

Capstone spoke with Sri Rao, General Partner, and Danielle Waldman, Vice President at Silversmith Capital Partners to discuss what the firm looks for in Application Development & Deployment investments and COVID-19 impacts on the industry. Founded in 2015, Silversmith is a Boston-based growth equity firm with $2 billion of capital under management. The firm’s mission is to partner with and support entrepreneurs in growing, profitable technology and healthcare companies. The firm seeks to invest $20 to $100 million per company for expansion, acquisition opportunities, and founder liquidity.

What differentiates Silversmith Capital Partners from In terms of add-on and platform investments, do you other firms? Our approach is to partner with the prefer to look for vertical or horizontal solutions? We founders of high growth, capital efficient software are quite flexible in our strategy. We've made several companies in core areas like Application Development & vertical market investments, especially in Healthcare IT Deployment, where we've built knowledge, experience, and Financial Technology where vertical solutions are and a relevant network over a long period of time. Focus powerful given regulatory and security requirements, in is often a key ingredient of success for the companies we addition to workflow expectations. In the Application partner with. Our focus enables us to leverage prior Development & Deployment segment, most of the relevant investment experience to build conviction about solutions that we've been attracted to have been exciting opportunities quickly and contribute what we horizontal. We found that many of the challenges that have learned about building businesses within key market developers face have been shared across a number of segments. Our focus also allows us to build a relevant industries. But in both horizontal and vertical solutions, network of executives, who can help identify, evaluate and we find that best-in-class products can drive word-of- support exciting growth companies, whether at the mouth referrals at scale, allowing companies to build big management team or Board level. Silversmith’s team businesses very efficiently from a cash perspective. orientation is also unique. Our culture creates an environment where everyone is aligned in service of the How has COVID-19 impacted AppDev & Development teams and companies we partner with. We think this and how are your portfolio companies responding? resonates with founders who are looking for true partners Over the past year, we saw the acceleration of digital and not just capital. transformation across industries and the shift to remote work. That encouraged strong growth for our Application What are your key investment criteria for add-ons or Development & Deployment companies as they helped platform investments in AppDev & Deployment? their customers navigate these dynamics. For example, We're typically looking for businesses that are at least $10 PDFTron, which offers a software development kit that million of revenue. We have invested in some smaller allows developers to embed document processing businesses and much larger ones, but the key is capabilities within their applications, enables many offline identifying them at an explosive point in the growth processes like form filling and signature gathering to shift curve. We are often complementing their product online. Microblink, which similarly offers a software strength to turn great products into great companies. development kit and a set of APIs for developers to Most often, in product-led growth businesses, developers, embed artificial intelligence and enable computer vision IT professionals, functional users and leaders within the within their applications, powers intelligent data organization are organically adopting the technology extraction from various document types including IDs and because they have a problem to solve, which proves to us receipts. Appfire offers workflow automation, technology that it really works. We love to find businesses that administration, business intelligence and reporting for have been able to scale rapidly in a capital efficient product development teams, which are key to remote manner. Most of the capital we've invested has been in collaboration. Webflow offers a no code platform that is bootstrapped companies which haven’t raised democratizing the opportunity to build for the web. These institutional capital previously. We feel if there’s growth products played key roles in helping businesses address with good unit economics, customer satisfaction, and modern challenges with digital solutions. efficient use of capital, that's a solid foundation from which to build an enduring business over time.

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Q&A WITH SILVERSMITH CAPITAL PARTNERS (CONTINUED)

What attracted you to Appfire and how are you What are the key drivers of demand for AppDev & positioning it for growth? Appfire’s founders Deployment in 2021 and over the next five years? understood the importance of digital transformation We've seen the shift to digital and cloud adoption globally and were early to recognize the role Atlassian’s develop over the past few decades. This shift certainly software development and collaboration tools would play. accelerated over the past year but is in many respects still They created a portfolio of apps to extend Atlassian’s in the early stages. Some of the shift to digital is now functionality to help product development teams manage permanent, while other aspects may manifest in a more workflow, automate repetitive tasks and deliver relevant hybrid manner. This shift has lots of implications for reporting & analytics. Leveraging product-led growth and technology buying, and the growth we have seen in this strategic partnerships, Appfire was able to scale without segment is likely to continue into the next year and for raising outside capital. We were attracted to the founders’ many years beyond that. We are particularly excited domain expertise, vision for the future and passion for about SDKs and APIs that help developers increase cultivating Appfire’s unique company culture. We shared efficiency by avoiding having to reinvent the wheel and an excitement for the opportunity to double down on the instead allowing them to focus on innovation. We believe company’s product strength while building an exceptional no code solutions have the power to democratize team around the founders, investing in marketing to software development in a way that will unlock new ideas, increase awareness and making strategic acquisitions to use cases and business models. This has the potential to expand functionality. Since our investment in May 2020, create the next leg of growth beyond what we’re seeing we've been able to make six acquisitions to welcome today. founders of other app developers into the Appfire family and provide resources to accelerate their growth. What 2021 investment opportunities are you seeking? We’re maintaining our focused approach while looking How do you help portfolio companies, like Appfire, for products that help solve today’s technology increase awareness of their products? To start, we try challenges. With the proliferation of SaaS products and to be good listeners, make sure we understand what’s other technologies within the enterprise, API integration working today and “do no harm.” We take a tailored is critical. These systems need to talk to each other for approach based on a variety of factors including type of data to flow seamlessly, to understand what’s going on product, price point, and user personas. We encourage both within a functional area and across the organization, incremental investments in R&D to ensure continued and to ensure security. Security specifically is of the product strength. The best marketing is when customers utmost importance, as highlighted by recent hacks and share their positive experiences in a trusted review. data leaks. And automation is key. There’s just too much Building a community around a company’s products also going on to manage everything manually. The ability to builds awareness and grows relationships with customers. make sure that all the investments made in this category Content marketing and case studies articulate tangible are productive relies upon seamless integration, security value delivered. Sales teams assisted by technology that and automation. We think these themes have been drives personalization at scale can help companies reach important historically and will be even more important more inbound and outbound demand. And the right going forward. partnerships can meaningfully amplify messaging.

As General Partner at Silversmith Capital As Vice President at Silversmith Capital Partners, Sri Rao focuses on investments Partners, Danielle Waldman pursues in SaaS & Information Services. Sri investments in SaaS & Information specializes in products that help foster Services, with a focus in Developer & IT customer relationships or enable tools and HCM software companies. creators, whether developers or artists, Prior to joining Silversmith in 2020, to make and distribute their work. Sri Danielle was a private equity investor at joined Silversmith in 2015 and is Vector Capital, focused on application involved with the firm’s investments in development software and vertical apps. ActiveCampaign, Appfire, DistroKid, Impact, Microblink, PDFTron, Validity and Webflow.

Contact Mr. Rao at [email protected] Contact Ms. Waldman at [email protected] 7 Application Development & Deployment | March 2021

BUYER UNIVERSE

Over the past five years, Capstone has followed buyers that have been highly acquisitive in the space as well as those that have completed notable AppDev & Deployment transactions. Capstone’s industry expertise and network provides us with unique insights into this buyer universe such as the companies’ industry and growth perspectives.

Leading Strategic Buyers

Leading Financial Buyers

Source: 451 Research, Capital IQ, PitchBook, FactSet, and Capstone Research

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NOTABLE TRANSACTIONS

Several notable transactions have been announced or completed in the industry in 2020 and into 2021. Select transactions are outlined below, followed by a more comprehensive list on the following pages.

Rocket Software, Inc. acquires Uniface B.V. (February 2021, Undisclosed)

Rocket Software, Inc., developer of enterprise-class software products and technology components, acquired low-code platform developer Uniface B.V. in February for an undisclosed sum. Netherlands- based Uniface offers low-code software development and deployment through its proprietary platform, with a focus on user experience (UX) and business logic rather than traditional coding. Uniface, its employees, and products serve as an expansion of Rocket Software’s existing operations in Acquires the Netherlands.

In addition, the acquisition scales Rocket Software’s client network and bolsters its low-code capabilities to meet demand throughout North America, Europe, Asia, and Australia. “Rocket extends our core values of Empathy, Humanity, Trust, and Love to Uniface customers and partners. We are excited to welcome a great new team to Rocket as we continue to expand our business around the world by creating legendary outcomes,” said Rocket Software President Gary Gregory in a press release.11

International Business Machines Corp. to acquire Nordcloud Oy (December 2020, Undisclosed)

IBM (NYSE:IBM), a leading information technology (IT) provider, announced their acquisition of Nordcloud Oy in December for an undisclosed sum. Headquartered in Helsinki, Finland, Nordcloud a developer of enterprise software offering cloud implementation, application development, and managed services, now operates offices in 10 countries throughout Europe. Nordcloud benefits from the acquisition by growing their global footprint enabling them to execute their company mission to To Acquire help businesses become stronger, fitter, and more agile with the cloud, according to a press release.12

IBM plans to bolster their hybrid cloud approach to allow clients to operate across private and public clouds in addition to the traditional IT environment. “Nordcloud’s cloud-native tools, methodologies and talent send a strong signal that IBM is committed to deliver our clients’ successful journey to cloud,” stated John Granger, Senior Vice President of Cloud Application Innovation at IBM, according to the press release.

Nintex Global Ltd. acquires K2 Software, Inc. (October 2020, Undisclosed)

Thoma Bravo-backed Nintex Global Ltd. acquired K2 Software, Inc. in October. Terms of the deal were not disclosed. Nintex, a developer of integrated workflow automation software, has competed three acquisitions since Thoma Bravo became the majority investor in 2018, now serving more than 10,000 customers and generating over $200 million in annual recurring revenue, according to a press release.13

Acquires K2 Software develops business process management software, enabling users to create customized business applications. With 1.5 million users, their platform is leveraged by businesses looking to improve operational efficiency and increase visibility of their business processes. The acquisition resulted in the combined efforts of both companies to reach the total addressable market for automated software solutions. “It's exciting to officially bring two technology innovators together to help organizations everywhere solve their process problems and automate work with easy-to-use and powerful software solutions," said Nintex CEO Eric Johnson in the press release. 9 Application Development & Deployment | March 2021

SELECT TRANSACTIONS

Enterprise EV / LTM Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA

Develops automated system documentation, 03/01/21 FLO Partners Netwrix - - - deployment, and compliance software tools.

Provides IT consulting and software 02/23/21 tarent solutions Qvest Media - - - development services.

Develops a visual interface to manage software 02/11/21 Targetprocess Apptio - - - development projects in a collaborative way.

Beyond Encryption Provides endpoint security solutions and software 02/08/21 Westcoast - - - Technologies endpoint testing.

Designs, develops, and integrates low-code application 02/03/21 Uniface Rocket Software - - - development and deployment software platform.

Magenic Cognizant Tech. Provides custom application development services in 01/19/21 - - - Technologies (NAS:CTSH) the U.S.

FogChain Offers an end-to-end software development life cycle 01/13/21 Avisa Pharma $30.9 - - (CNSX:FOG.X) and quality assurance solutions in Canada.

Appfire Provides custom software development and 12/22/20 Artemis Software - - - Technologies consulting services.

Develops and offers public cloud infrastructure 12/21/20 Nordcloud IBM (NYSE:IBM) - - - solutions and cloud-native application services. Provides a hosted API service for adding real-time 12/16/20 Pusher MessageBird $35.0 - - functionality to web and mobile applications.

Develops software development outsourcing and 12/08/20 Software Mind Enterprise Investors $40.8 - - consulting solutions. Provides application usage management solutions to 12/03/20 Flexera Software Thoma Bravo $2,850.0 - - application producers and enterprises.

Workgroup Converge Tech. Offers application development and integration 12/02/20 $1.1 0.1x - Connections Solutions (TSXV:CTS) systems consulting services. Provides software development services in Sweden 12/02/20 Seavus Aricoma Group - - - and internationally.

Allgeier Enterprise Develops web and open source-based software 12/01/20 publicplan - - - Services solutions for public sector institutions.

Keensight Provides software design services in France 12/01/20 Bloc In Bloc - - - Capital;Geomedia and internationally.

Epsilon Designs, develops, distributes, and implements 11/30/20 SingularLogic - - - (ATSE:EPSIL) software applications. Develops a packaging and testing automation 11/26/20 AppAvail Juriba - - - software platform.

Provides cloud, software development (Dev) and 11/24/20 Nuaware Exclusive Networks - - - information technology operations (Ops).

11/24/20 Cexina Soft Zitec Designs and develops web and mobile applications. - - -

Offers a platform that empowers developers and 11/24/20 Timekit Tulip.io - - - designers through a set of unified APIs.

Nova Development 11/18/20 ReneSola Provides the development of software platforms. $3.8 - - Mngt.

Mutually Human Century Tech. Offers outsourced software development and 11/17/20 - - - Software Group application modernization services. Source: Capital IQ, PitchBook, FactSet, and Capstone Research 10 Application Development & Deployment | March 2021

SELECT TRANSACTIONS (CONTINUED)

Enterprise EV / LTM Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA

Eagle Dream Pricewaterhouse Offers cloud building, web and mobile application 11/17/20 - - - Technologies Coopers development services. Develops a Load Testing as a Service platform, 11/17/20 StormForger GramLabs - - - targeting HTTP APIs.

Offers IT services, consulting, project management, and 11/16/20 TruQua Enterprises IBM (NYSE:IBM) - - - SAP software development for Fortune 500 companies.

Cisco Systems Provides cloud application development and security 11/16/20 Banzai Cloud - - - (NAS:CSCO) technologies in Hungary and internationally. Caesar Groep Offers web and application development, process 11/16/20 Fourict - - - Rotterdam management, and integration services.

Develops software development toolkits for computer- 11/11/20 Visual Kinematics Tech Soft 3D - - - aided engineering (CAE) applications.

Provides cloud-based work management solutions for 11/09/20 Workfront Adobe (NAS:ADBE) $1,500.0 - - enterprise teams.

11/07/20 Aplana Group Softline Group Offers software testing and IT services. - - -

Provides mobile application testing solutions 11/05/20 Mobile Labs Kobiton - - - for enterprises.

Blue4IT/Codesquad/ Develops front-end and back-end software applications 11/04/20 adesso (XTRA:ADN1) - - - Bluefront and software development services in the Netherlands. adesso(XTRA:ADN1); Offers software solutions including front-end, back- 11/04/20 CodeSquad - - - Codesquad end, and architecture services.

Ernst & Young Provides development and operations (DevOps) and 11/03/20 Zilker Technology - - - Beograd cloud management services. Butterfield Provides software development, test and measurement 11/02/20 CertTech - - - Engineering automation, and test integration.

Neosperience Offers services in the areas of software development, 10/29/20 Myti S.r.l. $1.6 - - (BIT:NSP) business intelligence, and artificial intelligence. Develops application performance monitoring (APM) 10/20/20 Plumbr Splunk $14.0 - - software for enterprises.

Designs and develops numerical control (NC/CNC) 10/19/20 CGTech Sandvik Coromant - - - simulation and analysis software technology. Develops software that integrates, manages and 10/15/20 Capiot Persistent Systems $6.3 - - analyzes the data for enterprise modernization.

Microchip Tech. Offers a cloud platform enabling software developers 10/09/20 LegUp Computing - - - (NAS:MCHP) to program, deploy, and scale applications.

Cisco Systems 10/01/20 Portshift Software Develops cloud security solutions. $1,500.0 - 6.3x (NAS:CSCO)

BlueWater Tetra Tech Provides application development, and development 09/29/20 $51.3 - - Federal Solutions (NAS:TTEK) and operation of federal enterprise systems. Vmware Develops and sells cloud orchestrations and server 09/29/20 Salt Stack $510.0 - - (NYSE:VMW) automation to businesses worldwide.

Designs and develops an IT operations management 09/21/20 Rundeck $100.0 - - PagerDuty platform and provides operations as a service.

Progress Software Provides cloud-based infrastructure automation 09/08/20 Chef $220.0 3.1x - (NAS:PRGS) solutions for public and private clouds.

Source: Capital IQ, PitchBook, FactSet, and Capstone Research 11 Application Development & Deployment | March 2021

FINANCING ACTIVITY

The increase of digital activity over the past decade heightened demand for AppDev & deployment software and services. COVID-19’s acceleration of this trend generated a rise in venture capital transactions among AppDev & deployment companies, with total transaction volume increasing by 28% in 2020 (547 deals) YOY. Although deal volume rose 38% YOY in 2020, total funds allocated decreased by 13% YOY, as more startup companies entered the space, requiring limited amounts of seed funding to scale operations. Total venture capital funding and deal volume in 2021 YTD has been on pace with the prior year. Highlighted below are several notable venture funding deals from January 2021 and Q4 2020.

AppDev & Deployment Venture Capital Raises (2010 – 2020) Total Volume Total Value

700 $12.0

600 $10.0 $8.8 500 $8.0 $6.3 400 $5.5 $6.0 $4.7 300 $4.4 $3.9

$3.7 $ Billions in $4.0 200 $2.3 $1.5 $1.8 Number Number of Transactions 100 $0.9 $2.0 166 263 292 392 445 491 441 434 467 395 547 0 $0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Source: PitchBook and Capstone Research

NOTABLE VENTURE CAPITAL TRANSACTIONS

 Openbase: Openbase, Inc., developer of open-source packages, secured $3.65 million in seed funding in January, led by Zeev Ventures. Founded in 2019, Openbase has grown its platform to over 500,000 developers a month over the past year by providing a database supporting all JavaScript packages, in addition to Python, Java, Go, and Rust coding languages.14 The seed funding attained will help Openbase bolster its suite of open-source packages.

 Unqork: Leading enterprise no-code platform, Unqork, Inc., raised $258 million in Series C funding led by BlackRock (NYS:BLK) this past December. With a post-money valuation of $2 billion, Unqork will use the funding to execute ongoing initiatives such as growing its global salesforce, investing in its engineering team to further technological capabilities, and expand go-to-market partnerships with service firms, according to a press release.15

 Cypress.io: Cypress.io, Inc. secured its largest funding to date, with $40 million raised in Series B funding led by OpenView Venture Partners in December. Currently providing end-to-end automated testing, Cypress.io will enhance its open-source offerings by allowing developers to write new types of tests such as unit tests and component tests.16 Additionally, the funds will be used to improve developer experience through their Dashboard Service.

 Vercel: In December, Vercel Inc., developer of a cloud-based workflow platform and deployment services provider, raised $40 million of Series B funding to drive platform development and scale its team globally. The round was led by GV, a venture capital firm specializing in the Technology sector. “Vercel’s collaborative approach to interactive web applications is well-positioned to become the top choice for developing websites over the next decade,” said Tyson Clark, GV General Partner in a press release.17

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PUBLIC COMPANY TRADING & OPERATING DATA: APPLICATION LIFECYCLE MANAGEMENT

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Citrix Systems, Inc. $136.17 78.5% $16,744.0 $17,843.7 $3,236.7 $782.1 24.2% 5.5x 22.8x Nutanix, Inc. $27.27 76.6% $5,570.8 $5,442.7 $1,305.3 NM NA 4.2x NM PTC Inc. $135.56 91.8% $15,834.8 $16,630.4 $1,531.4 $391.1 25.5% 10.9x 42.5x ServiceNow, Inc. $498.99 83.4% $97,851.9 $96,895.1 $4,519.5 $618.2 13.7% 21.4x NM

EV = enterprise value; LTM = last twelve months Mean 21.1% 10.5x 32.7x $ in millions, except per share data Median 24.2% 8.2x 32.7x NM = not meaningful, above 75x EV/EBITDA Harmonic Mean 19.5% 7.1x 29.7x

PUBLIC COMPANY TRADING & OPERATING DATA: APPLICATION PROGRAMMING INTERFACE

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Axway Software SA $32.46 92.5% $691.6 $765.1 $363.5 $45.7 12.6% 2.1x 16.7x Talend S.A. $64.06 97.2% $2,072.6 $2,096.0 $287.5 NM NA 7.3x NM

Mean 12.6% 4.7x 16.7x Median 12.6% 4.7x 16.7x Harmonic Mean 12.6% 3.3x 16.7x

PUBLIC COMPANY TRADING & OPERATING DATA: ARCHITECTURE & DESIGN

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Adobe Inc. $450.54 83.9% $215,955.4 $214,671.4 $12,868.0 $4,927.0 38.3% 16.7x 43.6x ANSYS, Inc. $330.78 80.1% $28,695.7 $28,725.2 $1,681.3 $591.8 35.2% 17.1x 48.5x Autodesk, Inc. $275.01 85.6% $60,471.8 $60,719.2 $3,790.4 $849.9 22.4% 16.0x 71.4x InVision Aktiengesellschaft $29.96 86.9% $67.0 $65.1 $14.9 $2.0 13.6% 4.4x 32.2x Software Aktiengesellschaft $39.60 74.8% $2,929.3 $2,659.8 $1,021.2 $208.4 20.4% 2.6x 12.8x

Mean 26.0% 11.4x 41.7x Median 22.4% 16.0x 43.6x Harmonic Mean 22.6% 6.3x 30.0x

PUBLIC COMPANY TRADING & OPERATING DATA: COLLABORATION

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Box, Inc. $21.77 94.2% $3,480.0 $3,533.0 $770.8 $90.2 11.7% 4.6x 39.2x DocuSign, Inc. $211.18 72.8% $40,389.6 $40,531.9 $1,453.0 NM NA NM NM Zoom Video Communications, Inc. $335.08 56.9% $97,806.3 $93,652.0 $2,651.4 $698.4 26.3% NM NM

Mean 19.0% 4.6x 39.2x Median 19.0% 4.6x 39.2x Harmonic Mean 16.2% 4.6x 39.2x

Source: Capital IQ and Capstone Research as of March 16, 2021 13 Application Development & Deployment | March 2021

PUBLIC COMPANY TRADING & OPERATING DATA: DEVELOPMENT

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA JFrog Ltd. $49.76 52.3% $4,586.1 $3,988.1 $150.8 NM NA NM NM New Relic, Inc. $61.46 75.8% $3,876.0 $3,604.2 $654.6 NM NA 5.5x NM

EV = enterprise value; LTM = last twelve months Mean NA 5.5x NA $ in millions, except per share data Median NA 5.5x NA NM = not meaningful, above 75x EV/EBITDA Harmonic Mean NA 5.5x NA

PUBLIC COMPANY TRADING & OPERATING DATA: LOW-CODE & NO-CODE

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Netcall plc $0.90 90.3% $133.4 $126.2 $35.8 $4.2 11.8% 3.5x 29.9x Pegasystems Inc. $121.76 81.8% $9,850.5 $9,903.5 $1,017.5 NM NA 9.7x NM salesforce.com, inc. $214.48 75.4% $196,344.6 $190,663.6 $21,252.0 $4,387.7 20.6% 9.0x 43.5x Temenos AG $142.77 80.4% $10,341.9 $11,170.7 $887.4 $382.6 43.1% 12.6x 29.2x

Mean 25.2% 8.7x 34.2x Median 20.6% 9.4x 36.3x Harmonic Mean 19.2% 6.9x 34.2x PUBLIC COMPANY TRADING & OPERATING DATA: MULTI-SEGMENT VENDORS

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Alphabet Inc. $2,083.89 97.1% $1,397,446.7 $1,288,195.7 $182,527.0 $57,789.0 31.7% 7.1x 22.3x Atlassian Corporation Plc $235.89 89.9% $58,987.1 $58,095.2 $1,802.9 $87.1 4.8% NM NM Cisco Systems, Inc. $49.67 99.9% $209,696.1 $194,729.1 $48,026.0 $15,889.0 33.1% 4.1x 12.3x Hewlett Packard Enterprise $15.74 97.5% $20,480.0 $32,766.0 $26,866.0 $4,385.0 16.3% 1.2x 7.5x International Business Machines $128.24 94.4% $114,594.5 $167,380.5 $73,621.0 $17,347.0 23.6% 2.3x 9.6x Micro Focus International plc $6.76 89.9% $2,266.1 $6,801.7 $3,001.0 $804.5 26.8% 2.3x 8.5x Microsoft Corporation $237.71 96.6% $1,792,860.1 $1,743,653.1 $153,284.0 $71,687.0 46.8% 11.4x 24.3x Oracle Corporation $66.85 90.8% $192,764.3 $226,926.3 $39,691.0 $17,649.0 44.5% 5.7x 12.9x SAP SE $122.50 71.9% $144,495.0 $154,968.2 $33,441.0 $7,563.0 22.6% 4.6x 20.5x Synopsys, Inc. $234.05 77.8% $35,662.9 $35,300.2 $3,821.2 $866.2 22.7% 9.2x 40.8x

Mean 27.3% 5.3x 17.6x Median 25.2% 4.6x 12.9x Harmonic Mean 18.5% 3.4x 13.3x PUBLIC COMPANY TRADING & OPERATING DATA: PERFORMANCE MANAGEMENT

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Datadog, Inc. $86.37 72.3% $26,471.7 $25,597.9 $603.5 $21.5 3.6% NM NM Dynatrace, Inc. $54.38 95.5% $15,367.5 $15,567.6 $657.6 $131.7 20.0% 23.7x NM Splunk Inc. $139.03 61.5% $22,484.0 $23,258.7 $2,229.4 NM NA 10.4x NM

Mean 11.8% 17.1x NA Median 11.8% 17.1x NA Harmonic Mean 6.1% 14.5x NA

Source: Capital IQ and Capstone Research as of March 16, 2021 14 Application Development & Deployment | March 2021

PUBLIC COMPANY TRADING & OPERATING DATA: RAPID APPLICATION DEVELOPMENT

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Alteryx, Inc. $84.31 45.4% $5,637.3 $5,676.4 $495.3 $26.8 5.4% 11.5x NM Altium Limited $20.70 66.5% $2,715.8 $2,640.4 $186.0 $68.0 36.6% 14.2x 38.8x Anaplan, Inc. $58.27 67.6% $8,373.4 $8,104.3 $447.8 NM NA 18.1x NM Appian Corporation $167.18 64.3% $11,819.0 $11,654.8 $304.6 NM NA NM NM IAR Systems Group AB (publ) $15.47 77.6% $211.0 $210.8 $45.3 $115.5 255.0% 4.7x 1.8x Progress Software Corporation $44.61 90.6% $1,972.5 $2,289.8 $442.2 $152.0 34.4% 5.2x 15.1x

EV = enterprise value; LTM = last twelve months Mean 82.8% 10.7x 18.6x $ in millions, except per share data Median 35.5% 11.5x 15.1x NM = not meaningful, above 75x EV/EBITDA Harmonic Mean 16.3% 8.1x 4.7x

PUBLIC COMPANY TRADING & OPERATING DATA: SECURITY

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA FireEye, Inc. $20.76 81.3% $4,916.1 $5,035.0 $940.6 NM NA 5.4x NM Palo Alto Networks, Inc. $340.00 84.4% $33,062.5 $33,363.9 $3,782.7 $113.5 3.0% 8.8x NM Qualys, Inc. $103.02 69.2% $4,039.2 $3,642.1 $363.0 $146.2 40.3% 10.0x 24.9x Rapid7, Inc. $79.52 84.1% $4,189.7 $4,341.2 $411.5 NM NA 10.6x NM Tenable Holdings, Inc. $40.28 68.9% $4,190.6 $3,957.1 $440.2 NM NA 9.0x NM

Mean 21.6% 8.7x 24.9x Median 21.6% 9.0x 24.9x Harmonic Mean 5.6% 8.3x 24.9x

PUBLIC COMPANY TRADING & OPERATING DATA: TESTING AUTOMATION

Price % 52 Wk Market Enterprise LTM EV / LTM Company 03/16/21 High Cap Value Revenue EBITDA Margin Revenue EBITDA Akamai Technologies, Inc. $100.21 80.2% $16,356.3 $16,636.3 $3,198.1 $1,254.7 39.2% 5.2x 13.3x SRA Holdings, Inc. $25.46 99.6% $314.1 $242.4 $398.9 $52.1 13.1% 0.6x 4.7x

Mean 26.1% 2.9x 9.0x Median 26.1% 2.9x 9.0x Harmonic Mean 19.6% 1.1x 6.9x

Source: Capital IQ and Capstone Research as of March 16, 2021

15 Application Development & Deployment | March 2021

PUBLIC COMPANY TRADING & OPERATING DATA: CAPSTONE INDUSTRY INDEX

Capstone AppDev & Deployment Index On Pace with S&P and Dow Jones

Capstone AppDev & Deployment Index Nasdaq Composite Index S&P 500 Dow Jones Industrial Average 60%

40% March 11: World Health Organization declares COVID-19 a pandemic 20% +21.2%

-20% Total Percentage Return Percentage Total

-40%

-60%

Source: Capital IQ and Capstone Research as of March 16, 2021 Index Includes: CTXS, NTNX, PTC, NOW, AXW, TLND, ADBE, ADSK, IVX, SOW, BOX, DOCU, ZM, FROG, NEWR, PEGA, CRM, GOOG.L, TEAM, CSCO, HPE, IBM, MCRO, MSFT, ORCL, SAP, SNPS, DDOG, DT, SPLK, AYX, ALU, PLAN, ANSS, APPN, IAR B, PRGS, FEYE, PANW, QLYS, RPD, TENB, AKAM, 3817, TEMN

16 Application Development & Deployment | March 2021

APPLICATION DEVEOPMENT & DEPLOYMENT REPORT CONTRIBUTORS

David DeSimone Managing Director [email protected] | 617-619-3324

David DeSimone rejoined the Boston office of Capstone Headwaters in 2015 as a Director in the Technology & Telecom Group. David brings more than 15 years of investment banking experience to Capstone and will help expand the firm’s technology sector coverage in the Northeast. David has worked on equity, debt and M&A transactions collectively valued at more than $4 billion. Previously, David was a member of the Capstone team for nearly seven years where he led efforts in the Technology Solutions vertical as a Vice President and Director. Prior to rejoining Capstone, David served as a Principal at Bowen Advisors, an M&A and strategic advisory firm focused on technology companies including communications and healthcare IT. David has also worked as a Vice President at Boenning & Scattergood, a Philadelphia-based middle market investment bank, where he worked with clients across a variety of industries and developed the firm’s technology practice. He spent his early career working at Needham & Company, Robertson Stephens and J.P. Morgan.

David Michaels Managing Director, Head of Technology, Media, & Telecom Practice [email protected] | 858-926-5950

David Michaels is a Managing Director of Capstone Headwaters where he is responsible for managing the firm’s Technology, Media & Telecom Group. David founded SagePoint Advisors in 2008, a boutique investment banking firm focused on providing M&A advisory services to technology and telecom companies. 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. 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. He also ran the firm’s Communications and Digital Media Technology practice areas 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.

Max Morrissey Research Associate [email protected] | 617-619-3336

Max is a Research Associate at Capstone Headwaters with a primary focus on the Technology, Media & Telecom, Business Services, and Education & Training industries. Before joining the corporate Research Team at Capstone Headwaters, Max was an analyst at Lab42 Research, a Chicago-based market research firm. At Lab42 Research he specialized in the development, implementation and analysis of propriety research projects with a focus in quantitative methodology and data analysis. Max has a BS in Economics and a BS in Marketing, both from the Driehaus College of Business at DePaul University.

17 Application Development & Deployment | March 2021

FIRM TRACK RECORD

CONFIDENTIAL CONFIDENTIAL CONFIDENTIAL

corporate sale corporate sale corporate sale (in market) (pre-market) (pre-market)

SOFTWARE TESTING LOW-CODE, NO-CODE LOW-CODE, NO-CODE PLATFORM PLATFORM PLATFORM

has been acquired by has been acquired by has been acquired by

a portfolio company of

 Developer of a low-code  Source code analysis  Automated embedded software platform for software that improves software testing tools for enterprise applications code quality and security safety-critical industries

has been acquired by has been acquired by has been acquired by has been acquired by

a portfolio company of a portfolio company of a portfolio company of

 Mobile app  Leading provider of  Leader in end-to-end  Provides application development independent IT testing PHP web and mobile service automation automation platform and quality assurance AppDev & Deployment software for managing for media and sports services solutions data center apps 18 Application Development & Deployment | March 2021

CITATIONS

1. ReportLinker, “Global Application Development and Deployment Software Industry,” https://www.reportlinker.com/p05960774/Global-Application-Development-and-Deployment-Software- Industry.html?utm_source=GNW, accessed March 1, 2021. 2. McKinsey & Co., “How COVID-19 Has Pushed Companies Over the Technology Tipping Point,” https://www.mckinsey.com/business- functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point- and-transformed-business-forever, accessed February 26, 2021. 3. Anaplan, “Q4 FY2021 Earnings Conference Call,” https://s22.q4cdn.com/422360030/files/doc_financials/2021/q4/Q4-FY21-Earnings- Slides_Final_Q4.pdf, accessed February 25, 2021. 4. Security Magazine, “Same Cyber Threats, Better Solutions in 2020” https://www.securitymagazine.com/articles/94708-same-cyber- threats-better-solutions-as-impact-of-data-breaches-skyrocketed-in-2020, accessed February 21, 2021. 5. Tenable Holdings, “Q4 2020 Earnings Call Transcript,” https://seekingalpha.com/article/4402938-tenable-holdings-inc-tenb-ceo- amit-yoran-on-q4-2020-results-earnings-call-transcript, accessed February 21, 2021. 6. Gartner, “Gartner Forecasts Worldwide Public Cloud End-User Spending to Grow 18% in 2021,” https://www.gartner.com/en/newsroom/press-releases/2020-11-17-gartner-forecasts-worldwide-public-cloud-end-user-spending- to-grow-18-percent-in-2021, accessed February 21, 2021. 7. Flexera “2020 State of the Cloud Report,” https://www.flexera.com/blog/industry-trends/trend-of-cloud-computing-2020/, accessed February 21, 2021. 8. Amazon, “2020 Investor Relations Report,” https://ir.aboutamazon.com/news-release/news-release-details/2021/Amazon.com- Announces-Fourth-Quarter-Results/default.aspx, accessed February 21, 2021. 9. Research and Markets, “Low-Code Development Platform Research Report,” https://www.researchandmarkets.com/reports/5184624/low-code-development-platform-market-research, accessed February 21, 2021. 10. PitchBook, “2020 Annual European M&A Report,” https://files.pitchbook.com/website/files/pdf/PitchBook_2020_Annual_European_MA_Report.pdf, accessed February 25, 2021. 11. Rocket Software, “Rocket Software Acquires Amsterdam-Based Uniface,” https://www.rocketsoftware.com/news/rocket-software- acquires-amsterdam-based-uniface-expanding-application-platform-footprint, accessed March 16, 2021. 12. Nordcloud, “IBM to Acquire Nordcloud,” https://nordcloud.com/ibm-to-acquire-nordcloud/, accessed February 21, 2021. 13. Nintex, “Nintex Completes Acquisition of K2 Software, Inc.,” https://news.nintex.com/2020-10-14-Nintex-Completes-Acquisition-of- K2-Software-Inc, accessed February 20, 2021. 14. Venturebeat, “Openbase wants to be the Yelp for Open Source Software Packages,” https://venturebeat.com/2021/01/13/openbase-helps-developers-find-and-compare-open-source-packages/, accessed, February 20, 2021. 15. Cision, “Unqork Announces $207 Million in Series C Funding,” https://www.prnewswire.com/news-releases/unqork-announces-207- million-in-series-c-funding-raising-company-valuation-to-2-billion-301146685.html, accessed February 20, 2021. 16. Cypress, “Cypress Raises $40M Series B Round Led by OpenView,” https://www.cypress.io/blog/2020/12/17/cypress-raises-40m- series-b-round-led-by-openview/, accessed February 20, 2021. 17. Businesswire, “Vercel Announces $40M is Series B Funding,” https://www.businesswire.com/news/home/20201216005299/en/Vercel- Announces-40M-in-Series-B-Funding-to-Fuel-Frontend-Development-Innovation, accessed February 20, 2021.

Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisition activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone Headwaters. The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such company. This report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The information contained herein should not be construed as legal advice. 19 BUILT FOR THE MIDDLE MARKET

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