Technology & Business Services

Technology & Business Services Strategic Market Insights – Q1 2017 Report G2 Overview Investment Banking and Restructuring Advisory

G2 Capital Advisors is pleased to present its Technology & Business Services industry update for Q1 2017, providing commentary and analysis on M&A and market trends within the Technology & Business Services industry. We hope you find this report helpful and encourage you to contact us directly if you would like to discuss our perspective on the current market environment, trends, or our relevant industry experience.

THIRTY-FIVE professionals FOUR Industry Practice Groups FIVE Service Offerings

Transportation & Logistics / Securities Supply Chain

Technology / Sell-Side Business Services Buy-Side

Aerospace & Defense / Operational Security Restructuring

Financial Industrials / across SIX offices Manufacturing Restructuring

G2 Overview Sector-Focused; Experience-Based G2 is focused in four sectors; each practice group headed by a leader with 20+ years of C-level operating experience. G2’s managing directors have navigated all stages of the corporate lifecycle, from growth to maturity, and apply that experience to provide advisory services to our clients.

Transportation & Industrials / Technology / Aerospace & Defense / Logistics / Supply Chain Manufacturing Business Services Security

Led by Ron Lentz Led by Jack Shields Led by Matt Konkle Led by Bob Kinder

▪ Freight Forwarding ▪ Manufacturing / Distribution ▪ Tech-enabled Services ▪ Cyber Security ▪ Trucking / Final Mile ▪ Flooring ▪ BPO ▪ Defense Robotics ▪ Warehousing / Distribution ▪ Plastics / Packaging ▪ Managed Services ▪ UAV, C4ISR, Hardware ▪ Third Party Logistics (3PL) ▪ Consumer Products ▪ Internet & Digital Media ▪ Aerospace Electronics ▪ e-Commerce Fulfillment ▪ Metals ▪ Business Services ▪ Aerospace Components

G2 offers clients an operational, experience-based approach within each of its practice sectors.

www.g2cap.com 2 Market Update G2 Insights

Below highlights a few key trends in the Technology & Business Services industries:

▪ e-Commerce sales grew 14.6% in the first quarter of 2017 compared to the same period of 2016. In addition to disrupting traditional retail, e-Commerce growth is driving innovation across its technology and service providers. Consumer demand for faster, cheaper service and personalized brand experience allows service providers that leverage technology, data and process automation to gain a competitive advantage.

▪ More businesses are implementing Cloud managed services to reduce the operational and infrastructural costs of their core business processes. The managed mobility services segment is expected to grow at a higher rate than business, network, security, and data services over the next five years due to adoption of the Internet of Things (IoT) and Bring Your Own Device (BYOD).

▪ Despite increasing global economic concern and talent shortages, staffing and recruiting professionals remain bullish for 2017 and expect performance similar to 2016. Improving revenue growth and overall profitability are key priorities for staffing firms, which are leveraging M&A to expand geographically, add complementary services and diversify their client base.

▪ Many industries are slated for regulatory changes under the new administration, creating opportunity for consulting and professional services firms, particularly midmarket firms with expertise in niche markets. Freelance and network-based models are redrawing industry lines, pushing traditional consultancies to collaborate and explore new business models. Competing for talent, firms are turning to technology-based solutions to enable their consulting capabilities and enhance recruitment.

Technology & Business Services Matt Konkle, Managing Director Matt Konkle brings 20+ years of C-level operating experience to G2’s Technology & Business Services practice group. Deep industry background in e-Commerce, supply chain and logistics, enterprise software, and business services, with operational expertise in tech-enabled services, business process outsourcing and managed services.

Company Title Role

Led the reorganization of the company’s e-Commerce fulfillment, COO customer care and supply chain services business units following the acquisition of Fifth Gear.

End-to-end e-Commerce services company specializing in complex President order fulfillment and BPO. Led the go-to-market strategy and growth of the business before selling for $65 million or 15x earnings.

Enterprise software company specializing in order management President technology for direct-to-consumer retailers. Transformed the business through multiple acquisitions and launch of offshore operations in India.

Pioneer in early warning notification software and services for Public CFO Safety industry. Led the sale of the company to Golden Gate Capital for 3x trailing twelve month revenue. Matt Konkle Practice Leader Enterprise software company that created the Enterprise Marketing Technology & Business Controller Management (EMM) category. Acquired by Teradata Corporation for Services $550M or 6x trailing twelve month revenue.

www.g2cap.com 3 Technology & Business Services M&A Activity – Middle Market

Total deal activity has remained steady since Q2 2013; overall deal multiples remain strong. Though there has been some pullback in M&A, debt remains a strong driver of transaction valuations.

M&A Transaction Multiples

11.5x 12.0x 10.4x 10.7x 10.0x 9.9x 10.1x 9.8x 9.5x 9.6x 9.8x 10.0x 9.3x 9.3x 8.8x 8.6x 8.6x

8.2x

5.7x 4.8x

8.0x 4.3x

6.7x 3.3x

4.3x

3.9x

4.0x

4.7x

3.6x

5.0x

4.8x

4.7x

3.4x 3.8x

6.0x 3.7x

4.2x 2.6x

4.0x

Multiples of EBITDA of Multiples

6.2x

6.1x

5.9x

5.8x

5.7x

5.4x

5.2x

4.9x

4.9x 4.8x

2.0x 4.7x

4.1x 4.0x

0.0x 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017 Debt/EBITDA Equity/EBITDA Valuation/EBITDA

M&A transaction multiples are the median North American M&A activity independent of target / acquirer industry and enterprise value. The dataset has been restricted to multiples between 0.0x and 30.0x EBITDA; sourced through Pitchbook’s 2017 Q1 Report.

U.S. Middle Market Private Equity Activity

$140 700 $595 $571 $570 $120 $566 $559 $553 600 $537 $541 $518 $505 $507 $507 $502 $100 $469 500 $422

$80 $364 400 $333

$60 300

$115

$113

$104 $104

Total Deal Count Total Deal

$102

$100

$96

$94

$91

Deal Value Value Deal ($BN)

$89

$89 $87

$40 $85 200

$81

$71 $59 $20 100

$0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2013 2014 2015 2016 2017* Deal Value ($B) # of Deals Closed The U.S. Middle Market as shown in this chart has been defined as companies with an enterprise value between $25MM and $1,000MM, and headquartered in the United States. Data sourced through PitchBook 2017 Q1 Report

www.g2cap.com 4 Technology & Business Services Selected Industry Deals 2017 Q1

Several notable transactions have already been completed or announced in the Technology & Business Services industry through 2017 Q1. G2 has outlined select transactions below, followed by a more comprehensive list on the following tables.

▪ Innosight acquired by Huron (March 2017) – Innosight Holdings LLC, a growth strategy firm focused on helping companies navigate disruptive change, enable innovation and manage strategic transformation has been acquired by Huron, a global professional services firm. Huron and Innosight will use their strategic, operational and technology capabilities to help clients across multiple industries develop pioneering solutions to address disruption and achieve sustained growth. The transaction is valued at $134MM, with $100MM cash at close and the remainder in an earn out structure.

▪ eNom acquired by Tucows Inc. (January 2017) – eNom, a wholesale domain name registrar has been acquired by Tucows, a provider of network access, domain names and other Internet services from Rightside, a leading provider of domain name services for $83.5MM. The transaction will give Tucows a total network of over 40,000 resellers globally and 29 million domains under management, making it the second largest domain registrar in the world.

▪ DSM Computing Solutions acquired by Apogee IT Services (January 2017) – DSM Computing Solutions Inc., an IT services provider and pioneer in cloud computing based in Toronto, Ontario has been acquired by Apogee IT Services, a managed IT services provider that serves over 375 small and medium-sized businesses across the Northeast. The addition will continue the strategic extension of Apogee’s IT service offerings across northeastern North America. No transaction valuations are disclosed. Technology & Business Services Key Trading Statistics

FY 20171 LTM2 Median Median Number of Median Enterprise EV / EV / Sector Revenue EBITDA Companies Value (MM) Revenue EBITDA Growth Growth* BPO 17 6,013 8.2% 12.0% 2.6x 12.6x

Business Intelligence 10 5,884 31.1% 10.8% 5.5x 17.4x

Consulting Services 15 1,199 6.1% 23.4% 1.8x 12.5x Cloud Software & 13 6,089 27.6% 58.5% 6.3x NM Services e-Commerce Services 8 30,045 19.0% 62.0% 4.1x 20.8x

Mobile Wireless 20 2,162 6.8% 13.5% 2.5x 9.4x

1 Estimated – 2017 Fiscal Year 2 LTM Multiples as at Friday, March 31, 2016 Sector Summary in Millions USD (converted where necessary) * YoY growth calculations exclude companies with negative margins in either period Data sourced from S&P Capital IQ on Friday, March 31, 2016 considered.

www.g2cap.com 5 Technology & Business Services Recent M&A Activity – Pending & Closed

BPO Implied Enterprise Date Closed Target Acquirer / Investor EV / EBITDA EV / Revenue Value (MM) Urban Fulfillment Services, Pending HCL Technologies Limited - - - LLC

Pending EDL Consulting, Inc. Simplus - - -

Pending Ciber, Inc. AMERI Holdings, Inc. $97.9 NM 0.1x

RagingWire Data Centers, NTT Communications Pending - - - Inc. Corporation Preferred Systems Solutions, Pending STG Group, Inc. $119.5 - - Inc.

Pending SourceHOV LLC HGM, LLC - - -

Pending Novitex Enterprise Solutions Apollo Global Management - - -

Doberman Technologies Apr-17 Nonik Technologies, Inc. - - - LLC Geneva Technical Services, Mar-17 Halo Group, LLC - - - LLC Employee Relations Mar-17 TalentBridge Holdings, LLC - - - Associates, Inc

Mar-17 ATCG Solutions, LLC AMERI Holdings, Inc. - - -

Mar-17 Maintech, Incorporated Oak Lane Partners, LLC $18.3 - -

Network Access Products, Comm-Works Holdings, Mar-17 - - - Inc. LLC

Mar-17 Information Innovators Inc. Salient CRGT, Inc. - - -

Feb-17 Orion Financial Group, Inc. MetaSource, LLC - - -

Feb-17 Titan Computer Services, Inc. Undisclosed $0.1 - 13.1x

Jan-17 Congruity LLC Procurri LLC - - -

DSM Computing Solutions Jan-17 Apogee IT Services, Inc. - - - Inc.

Jan-17 Navantis, Inc. Datavail Corporation - - -

Jan-17 True North Service, Inc. LogiGear Corporation - - -

Artech Information Jan-17 Tech-Pro, Inc. - - - Systems LLC

Jan-17 Payroll Specialties NW, Inc. Asure Software, Inc. $3.5 NM 2.1x

Jan-17 Incepture Inc. HM Health Solutions, Inc. - - -

Personnel Management Jan-17 Asure Software, Inc. $5.0 - - Systems, Inc.

Dec-16 Stratiform, Inc. PCM, Inc. $2.9 - 0.7x

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 6 Technology & Business Services Recent M&A Activity – Pending & Closed

Business Intelligence Implied Enterprise Date Closed Target Acquirer / Investor EV / EBITDA EV / Revenue Value (MM) Hewlett Packard Enterprise Pending Cloud Cruiser, Inc. - - - Company Mar-17 AppDynamics, Inc. Cisco Systems, Inc. $3,902.9 NM 18.9x Jan-17 MarketSight LLC Reimagine Holdings Group - - - Jan-17 Omniata Inc. Activision Blizzard, Inc. - - - Sterling Valley Systems, Jan-17 DestiMetrics, LLC - - - Inc. Jan-17 Yodil, Inc. Duck Creek Technologies - - - Consulting Services Implied Enterprise Date Closed Target Acquirer / Investor EV / EBITDA EV / Revenue Value (MM) Accretio Investments Pte. Pending Fuld & Company, Inc. $3.8 - - Ltd. Medical Innovation Pending BBVI Consulting, LLC - - - Holdings, Inc. Farmers Edge Precision Hamblin Watsa Investment Pending - - - Consulting Inc. Counsel Ltd. Apple Growth Partners, Pending KPFF, LLC - - - Inc. First Annapolis Consulting, Mar-17 Accenture plc - - - Inc. Magnus Management Group, Mar-17 NXTKey Corporation - - - LLC Geneva Technical Services, Mar-17 Halo Group, LLC - - - LLC Northeast Association York Risk Services Group, Mar-17 - - - Management, Inc. Inc. Draper Aden Associates, Mar-17 Solutions-IES, Inc. - - - Inc. Consulting Services Support Mar-17 Cardiff International, Inc. $1.5 - - Corporation AdvancedEPM Consulting, Mar-17 Datavail Corporation - - - Inc. Mar-17 OverMont Consulting, LLC Whitley Penn LLP - - - Huron Consulting Group Mar-17 Innosight LLC $134.3 - - Inc. Feb-17 Eclipsecurity, LLC HALOCK Security Labs - - - Feb-17 ORTECH Consulting Inc. Kontrol Energy Corp. $3.5 4.9x 0.9x Sunpark Consulting Group, Feb-17 NetAccess Systems, Inc. - - - Inc. Jan-17 M&S Technologies, Inc. Kudelski Security - - - Jan-17 CynergisTek, Inc. Auxilio, Inc. $31.7 6.3x 2.1x Jan-17 BEworks Inc. kyu - - - Natural Resource Jan-17 O'brien & Gere Limited - - - Technology, Inc. Jan-17 R.A.S. Associates, Inc. Perficient, Inc. - - - Jan-17 Alcyon, Inc. Alutiiq, LLC - - - Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 7 Technology & Business Services Recent M&A Activity – Pending & Closed

Cloud & Software Services

Implied Enterprise Date Closed Target Acquirer / Investor EV / EBITDA EV / Revenue Value (MM) Saba Software, Inc.; Pending Halogen Software Inc. $170.6 26.9x 2.4x 6883621 Canada Inc. Madison Dearborn Pending BlueCat Networks, Inc. - - - Partners, LLC ProSmart Sports Pending Sora Capital Corp. $6.2 - - Development, Inc. ExciteAd Digital Marketing Pending ClicksMob, Inc. $5.1 - 0.3x Ltd

Pending AudioEye, Inc. Undisclosed $13.7 NM 13.7x

Pending iMicron Web Services LLC. Techwave Consulting Inc. $1.1 - -

Pending GreedyRates.ca Inc. XLMedia PLC $9.3 - -

MeetMe, Inc. (nka:The Apr-17 Ifwe Inc. $60.0 - 1.4x Meet Group, Inc.)

Apr-17 Veracode, Inc. CA, Inc. $614.0 - -

Feb-17 GreatDay, Inc., PotCircles South American Gold Corp. $0.9 - -

Feb-17 Infoaxe, Inc. Revcontent, LLC $30.0 - -

Feb-17 DeviantArt, Inc. Wix.com Ltd. $36.0 - -

Jan-17 Axiometrics Inc. MPF Research Inc. $80.0 - -

Performance Assessment Jan-17 PSI Services LLC $271.0 - - Network, Inc.

Jan-17 eNom Inc. Tucows Inc. $83.5 61.6x 0.5x

Jan-17 ShareASale.com, Inc. Digital Window Ltd. $45.0 - 3.2x

The Dun & Bradstreet Jan-17 Avention, Inc. $150.0 - 2.5x Corporation

Jan-17 Meetoou LLC Net2Phone, Inc. - - -

Sterling Valley Systems, Jan-17 DestiMetrics, LLC - - - Inc.

Jan-17 Wow Media Products, Inc. Undisclosed - - -

Jan-17 LocateAR, LLC The Glimpse Group, Inc. - - -

Jan-17 iGuideCA San Diego DigitalRealtyX, Inc. - - -

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 8 Technology & Business Services Recent M&A Activity – Pending & Closed e-Commerce Services

Implied Enterprise Date Closed Target Acquirer / Investor EV / EBITDA EV / Revenue Value (MM) Quotit Corporation And National General Holdings Pending HealthCompare Insurance - - - Corp. Services, Inc. Pending TaskStream, LLC Tk20, Inc. - - - Mar-17 GiveForward Inc. YouCaring Dot Com, LLC - - - Mar-17 NetSource Communications Venture Technologies - - - Mar-17 Dog Vacay, Inc. A Place for Rover, Inc. - - - Mar-17 GiveForward Inc. YouCaring Dot Com, LLC - - - Mar-17 comparehotels.online eMedia Group Inc. - - - Mar-17 MyBuilder Limited HomeAdvisors - - - Feb-17 HomeStars HomeAdvisor - - - Feb-17 Tilt.com, Inc. Airbnb, Inc. - - - Feb-17 LiftMetrix, Inc. HootSuite Media Inc. Feb-17 CommonKindness, Inc. makeena, inc. - - - Jan-17 Tiketscript BV Eventbrite - - - Jan-17 CrowdRise, Inc. GoFundMe, Inc - - - Jan-17 CameraLends LLC KitSplit Inc. - - - Jan-17 Limos.com, Inc. On Demand iCars, Inc. - - - Mobile Wireless

Implied Enterprise Date Closed Target Acquirer / Investor EV / EBITDA EV / Revenue Value (MM) Pending Pareteum Corporation Undisclosed $29.8 NM 2.3x EQT Partners AB; EQT Pending Lumos Networks Corp. $869.1 10.3x 4.2x Infrastructure, L.P. Xplornet Communications Pending YourLink Inc. $21.5 - - Inc. Feb-17 Fonality Inc. NetFortris, Inc. - - - Detel Computer Solutions Llc Conterra Ultra Broadband, Jan-17 - - - And Broadplex LLC LLC Midwest Underground Jan-17 FTE Networks, Inc. - - - Solutions, Specific Assets

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 9 Technology & Business Services Public Trading Metrics – BPO

Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Industry Cash EBITDA Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA

Mean 17,198 16,964 1,001 6,316 1,309 17.2% 1,659 1.6x 2.6x 12.6x

Median 6,013 6,857 423 2,914 654 19.8% 612 1.4x 2.2x 12.5x

Automatic Data Processing, Inc. NASDAQGS:ADP 45,219 45,963 2,705 12,051 2,733 22.7% 2,003 0.7x 3.8x 16.5x Cognizant Technology NasdaqGS:CTSH 31,935 36,226 2,034 13,487 2,668 19.8% 797 0.3x 2.4x 12.0x Solutions Corporation

Convergys Corporation NYSE:CVG 2,148 2,000 139 2,914 365 12.5% 297 0.8x 0.7x 5.9x

Equifax Inc. NYSE: EFX 19,110 16,509 129 3,145 1,123 35.7% 2,087 1.9x 6.1x 17.0x

ExlService Holdings, Inc. NasdaqGS:EXLS 1,420 1,601 213 686 99 14.4% 35 0.4x 2.1x 14.3x Fidelity National Information NYSE:FIS 36,076 26,177 683 9,241 2,270 24.6% 10,146 4.5x 3.9x 15.9x Services, Inc. Genpact Limited NYSE:G 5,407 4,927 423 2,571 421 16.4% 698 1.7x 2.1x 12.9x

Global Payments Inc. NYSE:GPN 16,120 12,303 1,163 3,776 989 26.2% 4,261 4.3x 4.3x 16.3x

Infosys Limited NSEI:INFY 31,357 36,060 3,489 10,208 2,774 27.2% NA NA 3.1x 11.3x

StarTek, Inc. NYSE:SRT 171 137 1 307 15 5.0% 1 0.1x 0.6x 11.0x Sykes Enterprises, NasdaqGS:SYKE 1,240 1,240 267 1,460 164 11.2% 267 1.6x 0.8x 7.6x Incorporated TeleTech Holdings, Inc. NasdaqGS:TTEC 1,528 1,358 55 1,275 158 12.4% 217 1.4x 1.2x 9.7x

West Corporation NasdaqGS:WSTC 5,022 2,035 183 2,292 654 28.5% 3,130 4.8x 2.2x 7.7x

Wipro Limited BSE:507685 16,558 19,224 813 8,495 1,698 20.0% 303 0.2x 1.9x 9.8x

Wirecard AG XTRA:WDI 6,013 6,857 1,407 1,117 310 27.8% 612 2.0x 5.4x 19.4x

WNS (Holdings) Ltd. NYSE:WNS 1,276 1,429 71 586 91 15.5% NA NA 2.2x 14.1x

4.0x 16.0x 15.0x 3.5x 13.6x 14.0x 13.6x 13.1x 3.5x

12.0x 12.0x 11.6x 3.0x 11.0x 2.7x 2.7x 2.7x 10.7x 10.5x 11.2x 2.4x 10.0x 2.5x 2.3x 2.1x 2.2x 2.2x 8.3x 1.9x 2.0x 8.0x S&P 500 1.7x S&P 500 EV EV / EBITDA 6.0x 1.5x

4.0x 1.0x EV EV / TOTAL REVENUE 2.0x 0.5x

0.0x 0.0x

Sector Summary in Millions USD (converted where necessary) Charts show average daily multiples for each year Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 10 Technology & Business Services Public Trading Metrics – Business Intelligence

Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Industry Cash EBITDA Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA

Mean 8,376 7,840 340 2,024 582 18.9% 1,367 3.3x 5.5x 17.4x

Median 5,884 5,927 187 1,787 150 -0.3% 1,126 2.7x 6.7x 16.9x

FireEye, Inc. NasdaqGS:FEYE 2,045 2,238 163 720 (219) -30.5% 751 -3.4x 2.8x NM

Gartner, Inc. NYSE:IT 9,181 8,961 1,228 2,512 396 15.8% 1,606 4.1x 3.7x 23.2x

IHS Markit Ltd. NasdaqGS:INFO 20,541 16,909 155 3,031 871 28.7% 3,146 3.6x 6.8x 23.6x

New Relic, Inc. NYSE:NEWR 1,761 1,957 88 263 (42) -16.1% NA NA 6.7x NM

Proofpoint, Inc. NasdaqGM:PFPT 3,189 3,220 382 410 (33) -8.2% 372 -11.1x 7.8x NM Science Applications NYSE:SAIC 4,079 3,242 210 4,450 334 7.5% 1,022 3.1x 0.9x 12.2x International Corporation Splunk Inc. NasdaqGS:SPLK 7,614 8,611 421 950 (300) -31.6% NA NA 8.0x NM

Verisk Analytics, Inc. NasdaqGS:VRSK 15,748 13,500 155 2,005 934 46.6% 2,274 2.4x 7.9x 16.9x

Workday, Inc. NYSE:WDAY 15,444 16,906 540 1,569 (274) -17.4% 534 -2.0x 9.8x NM

10.0x 30.0x 9.1x 9.3x 9.0x 8.0x 24.3x 25.0x 23.1x 8.0x 22.9x 22.8x 7.0x 6.8x 20.0x 19.6x 18.1x 18.4x 18.0x 6.0x 5.6x 5.6x 17.1x 5.2x 5.4x 15.9x 4.9x 15.4x 5.0x 4.6x 15.0x S&P 500

4.0x 3.7x EV EV / EBITDA 10.0x

3.0x EV EV / TOTAL REVENUE

2.0x 5.0x S&P 500 1.0x

0.0x 0.0x

Sector Summary in Millions USD (converted where necessary) Charts show average daily multiples for each year Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 11 Technology & Business Services Public Trading Metrics – Consulting Services

Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Industry Cash EBITDA Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA

Mean 7,995 8,094 811 4,429 665 12.3% 692 1.5x 1.8x 12.5x

Median 1,199 1,072 54 726 124 13.0% 135 1.0x 1.4x 11.7x

Size (Millions USD) Leverage Valuation Company Ticker EBITDA Margin Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Cash LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA Booz Allen Hamilton Holding NYSE: BAH 6,521 5,307 350 5,647 520 9.2% 1,485 2.9x 1.2x 12.5x Corporation Accenture plc NYSE:ACN 71,773 74,336 3,239 33,757 5,721 16.9% 25 0.0x 2.1x 12.5x ENXTPA:CAP Cap Gemini S.A. 16,860 15,167 1,879 12,539 1,582 12.6% 3,273 2.1x 1.3x 10.7x

CRA International, Inc. NasdaqGS:CRAI 249 302 54 325 27 8.2% NA NA 0.8x 9.3x

Ecology & Environment, Inc. NasdaqGM:EEI 33 43 12 102 5 5.1% 0 0.0x 0.3x 6.3x

Exponent, Inc. NasdaqGS:EXPO 1,351 1,524 87 300 66 22.1% NA NA 4.5x 20.3x

Huron Consulting Group Inc. Nasdaq: HURN 1,169 894 17 726 128 17.6% 292 2.3x 1.6x 9.2x

Navigant Consulting, Inc. NYSE:NCI 1,199 1,072 8 939 142 15.1% 135 1.0x 1.3x 8.4x

NV5 Global, Inc. NasdaqCM:NVEE 395 398 36 224 26 11.6% 22 0.8x 1.8x 15.2x

Resources Connection, Inc. NasdaqGS:RECN 492 498 45 587 46 7.9% 48 1.0x 0.8x 10.6x

TechnipFMC plc NYSE:FTI 11,431 15,164 5,948 8,313 1,085 13.0% 1,573 1.5x 1.4x 10.5x

The Advisory Board Company Nasdaq: ABCO 2,377 1,883 91 803 124 15.4% 536 4.3x 3.0x 19.2x The Dun & Bradstreet NYSE: DNB 5,261 3,983 353 1,704 450 26.4% 1,595 3.5x 3.1x 11.7x Corporation The Hackett Group, Inc. NasdaqGS:HCKT 556 569 20 260 39 15.1% 7 0.2x 2.1x 14.1x

Willdan Group, Inc. Nasdaq: WLDN 255 271 23 209 15 7.1% 2 0.1x 1.2x 17.2x

2.5x 16.0x S&P 500 14.2x 14.0x 13.3x 13.5x 2.0x 12.8x 2.0x 11.6x 12.0x 11.4x 1.7x 1.7x 1.7x

9.0x 1.5x 10.0x 9.4x 10.0x 1.5x 1.4x 1.3x 8.8x 7.6x S&P 500 1.2x 1.2x 8.0x 1.1x 1.0x 1.0x

EV EV / EBITDA 6.0x

4.0x EV EV / TOTAL REVENUE 0.5x 2.0x

0.0x 0.0x

Sector Summary in Millions USD (converted where necessary) Charts show average daily multiples for each year Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 12 Technology & Business Services Public Trading Metrics – Cloud Software & Services

Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Industry Cash EBITDA Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA

Mean 48,736 52,040 1,204 8,495 4,175 14.4% 6,710 5.2x 6.5x NM

Median 6,089 5,731 401 1,391 48 3.8% 926 1.1x 7.0x NM

Cornerstone OnDemand, Inc. NasdaqGS:CSOD 2,140 2,203 83 423 (46) -10.9% 238 -5.2x 5.1x NM

IAC/InterActiveCorp NasdaqGS:IAC 6,089 5,731 1,329 3,140 420 13.4% 1,582 3.8x 1.9x NM

Microsoft Corporation NasdaqGS:MSFT 475,536 508,935 8,468 85,688 27,738 32.4% 59,306 2.1x 5.5x NM

Qualys, Inc. NasdaqGS:QLYS 1,134 1,378 87 198 48 24.2% NA NA 5.7x NM

Salesforce.com, inc. NYSE:CRM 58,862 58,362 1,607 8,392 505 6.0% 2,008 4.0x 7.0x NM

ServiceNow, Inc. NYSE:NOW 14,303 14,695 401 1,391 (69) -4.9% 508 -7.4x 10.3x NM

Twilio Inc. NYSE:TWLO 2,221 2,527 306 277 (34) -12.3% NA NA 8.0x NM

Twitter, Inc. NYSE:TWTR 8,703 10,791 1,192 2,483 95 3.8% 1,560 16.5x 3.5x NM

Tyler Technologies, Inc. NYSE:TYL 5,681 5,727 36 756 159 21.1% 10 0.1x 7.5x NM

Workday, Inc. NYSE:WDAY 15,444 16,906 540 1,569 (274) -17.4% 534 -2.0x 9.8x NM

Yahoo! Inc. NasdaqGS:YHOO 38,905 44,391 1,329 5,409 261 4.8% 1,317 5.1x 7.2x NM

Zendesk, Inc. NYSE:ZEN 2,534 2,759 94 312 (84) -27.0% NA NA 8.1x NM

12.0x 35.0x 10.8x10.6x

30.0x 28.9x 10.0x 9.0x 26.1x26.6x 25.0x 22.5x 8.0x 7.1x 7.2x 7.1x 20.5x20.3x 20.0x 5.7x 6.0x 15.5x S&P 500 4.8x

15.0x EV EV / EBITDA 11.8x 11.1x 10.7x 4.0x 3.6x 3.6x 9.8x 10.0x EV / TOTAL REVENUE 2.5x

2.0x 5.0x S&P 500

0.0x 0.0x

Sector Summary in Millions USD (converted where necessary) Charts show average daily multiples for each year *Multiples less than 30.0x included Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 13 Technology & Business Services Public Trading Metrics – e-Commerce Services

Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Industry Cash EBITDA Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA

Mean 100,980 101,940 5,484 24,578 3,465 14.4% 4,864 2.2x 4.1x 20.8x

Median 30,045 27,714 2,047 9,059 1,915 12.8% 4,975 1.8x 3.4x 20.0x

Amazon.com, Inc. Nasdaq: AMZN 417,463 423,031 15,440 142,573 12,221 8.6% 7,691 0.6x 2.9x NM

Baidu, Inc. Nasdaq: BIDU 55,111 59,949 2,115 10,402 2,728 26.2% 4,975 1.8x 5.3x 20.2x

eBay Inc. Nasdaq: EBAY 38,303 36,492 1,979 9,059 2,935 32.4% 6,756 2.3x 4.2x 13.1x

Etsy, Inc. Nasdaq: ETSY 964 1,234 195 380 28 7.4% NA NA 2.5x 34.1x

EVINE Live Inc. Nasdaq: EVLV 131 78 33 666 14 2.1% 82 5.8x 0.2x 9.2x

Expedia, Inc. Nasdaq: EXPE 21,787 18,936 2,503 9,058 1,102 12.2% 3,171 2.9x 2.4x 19.8x

TripAdvisor, Inc. Nasdaq: TRIP 5,747 6,222 731 1,500 202 13.5% 210 1.0x 3.8x 28.5x

9.0x 25.0x 8.1x 7.8x 8.0x 8.0x 7.5x 20.2x20.0x 20.0x 19.3x 19.3x 7.0x 17.7x 18.8x 18.2x 5.9x 6.0x 15.5x15.9x 5.1x 15.0x 15.2x 4.8x 4.9x 5.0x 4.6x 4.6x

S&P 500 4.0x

10.0x 9.6x 3.2x EV EV / EBITDA

3.0x EV EV / TOTAL REVENUE 2.0x 5.0x S&P 500 1.0x

0.0x 0.0x

www.g2cap.com 14 Technology & Business Services Public Trading Metrics – Mobile Wireless

Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Industry Cash EBITDA Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA

Mean 44,189 28,482 1,115 19,380 6,050 22.7% 17,729 4.0x 2.5x 9.4x

Median 2,162 1,161 240 670 231 29.3% 1,116 3.2x 2.2x 7.8x

Size (Millions USD) Leverage Valuation Company Ticker EBITDA Margin Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Cash LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA Alaska Communications Nasdaq: ALSK 256 96 21 227 55 24.0% 175 3.2x 1.1x 4.7x Systems Group, Inc. AT&T Inc. NYSE: T 377,518 255,182 5,788 163,786 49,740 30.4% 117,562 2.4x 2.3x 7.6x

ATN International, Inc. Nasdaq: ATNI 1,146 1,137 270 457 148 32.4% 144 1.0x 2.5x 7.7x

CenturyLink, Inc. NYSE: CTL 32,349 12,883 222 17,470 6,488 37.1% 18,185 2.8x 1.9x 5.0x Cogent Communications Nasdaq: CCOI 2,349 1,922 274 438 135 30.9% 560 4.1x 5.4x 17.4x Holdings, Inc. Consolidated Communications Nasdaq: CNSL 2,556 1,185 27 743 263 35.4% 1,366 5.2x 3.4x 9.7x Holdings, Inc. Fairpoint Communications, Inc. Nasdaq: FRP 1,323 449 35 824 444 53.9% 898 2.0x 1.6x 3.0x

General Communication, Inc. Nasdaq: GNCM.A 2,154 746 19 934 273 29.2% 1,333 4.9x 2.3x 7.9x

Gogo Inc. Nasdaq: GOGO 1,299 949 117 597 79 13.2% 801 10.1x 2.2x 16.4x

Hawaiian Telcom Holdco, Inc. Nasdaq: HCOM 543 264 16 393 110 28.0% 290 2.6x 1.4x 4.9x

Iridium Communications Inc. Nasdaq: IRDM 2,186 940 371 434 226 52.1% 1,657 7.3x 5.0x 9.7x

NII Holdings, Inc. Nasdaq: NIHD 556 131 257 985 32 3.2% 216 6.8x 0.6x 17.4x

ORBCOMM Inc. Nasdaq: ORBC 807 682 25 187 37 19.7% 149 4.0x 4.3x 22.0x Shenandoah Nasdaq: SHEN 2,170 1,377 36 535 236 44.0% 797 3.4x 4.1x 9.2x Telecommunications Company Silicon Motion Technology Nasdaq: SIMO 1,396 1,649 274 556 147 26.4% NA NA 2.5x 9.5x Corporation Spok Holdings, Inc. Nasdaq: SPOK 264 390 126 180 37 20.4% NA NA 1.5x 7.2x

Sprint Corporation NYSE: S 65,866 34,609 3,707 32,879 9,633 29.3% 30,759 3.2x 2.0x 6.8x Telephone and Data Systems, NYSE: TDS 5,072 2,920 900 5,104 917 18.0% 2,433 2.7x 1.0x 5.5x Inc. T-Mobile US, Inc. Nasdaq: TMUS 78,292 53,385 5,500 37,242 9,314 25.0% 28,962 3.1x 2.1x 8.4x

Verizon Communications Inc. NYSE: VZ 305,683 198,741 4,307 123,623 42,685 34.5% 112,839 2.6x 2.5x 7.2x

4.5x 16.0x 14.8x 15.0x 3.8x 14.5x 13.9x 4.0x 14.0x 3.5x 12.0x 10.2x 10.0x 3.0x 10.0x 2.5x 2.4x 2.4x 2.5x S&P 500 2.5x 2.3x 2.1x 2.1x 2.1x 8.0x 6.9x 6.9x 1.9x 1.9x 6.8x 6.4x 2.0x 6.0x 5.6x S&P 500 1.5x EV EV / EBITDA 4.0x 1.0x 2.0x EV EV / TOTAL REVENUE 0.5x 0.0x 0.0x

Sector Summary in Millions USD (converted where necessary) Charts show average daily multiples for each year Data sourced from S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 15 Technology & Business Services Economic & Industry Trends

% Change in Personal DPI

250 245 240 235

230 1984=100 - 225 220 215

Index1982 210 205 200 Q1 '07 Q1' 08 Q1 '09 Q1 '10 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 Q1 '16 Q1' 17

Data sourced through S&P Capital IQ on Friday, March 31, 2017

Last 5 Year EV / EBITDA Trend by Industry

30.0x

25.0x

20.0x

15.0x

EV EV / EBITDA 10.0x

5.0x ^SPX BPO e-Commerce Services Consulting Services Mobile Wireless Business Intelligence 0.0x Q1 '12 Q3 '12 Q1 '13 Q3 '13 Q1 '14 Q3 '14 Q1 '15 Q3 '15 Q1 '16 Q3 '16 Q1 '17

Data sourced through S&P Capital IQ on Friday, March 31, 2017

www.g2cap.com 16 Reference Contact & Glossary of Terms

Matt Konkle, Managing Director Jeffrey Unger, CEO [email protected] [email protected] 317.371.6608 617.918.7929 Shubz Chandna, Analyst [email protected] 617.417.5891

Term Definition

Total revenue from the sale of goods and services rendered during the reporting period, in normal course of Revenue business, reduced by sales returns and allowances, and sales discounts. For banks, this item is defined as net interest income after loan loss provisions

Earnings before interest, taxes, depreciation, and amortization. Calculated as Revenue – Expenses, excluding EBITDA interest, taxes, depreciation and amortization

Market value of a company using most recently reported basic weighted average shares outstanding. Market Cap Calculated as Market Price (as of period end) * Basic Weighted Average Shares Outstanding

Sum of the carrying values as of the balance sheet date of long-term debt with a maturity beyond one year or Long-Term Debt the normal operating cycle, if longer

Net Debt shows the company’s overall debt situation by netting the value of debts with cash and other similar Net Debt liquid assets. Calculated as Total Debt – Cash & Cash Equivalents and Short Term Investments

Enterprise Value represents the combined economic value of a company as of the most recent fiscal year end. Enterprise Value Calculated as Diluted Market Capitalization + Total Debt + Minority Interest + Preferred Stock – Cash and Short Term investments

A valuation ratio of a company stock price compared to its per share earnings. Calculated as Market Price / P/E Earnings per Share for the last annual period

Tangible Book Value Total Shareholder’s Equity – Goodwill and Intangible Assets

The information included in this Presentation is not a complete analysis of all material facts regarding any company, industry, or security and does not constitute investment advice. Opinions expressed or implied by the materials here presented reflect only the judgement of its author as of the date of the Presentation and is subject to change without notice. The information in this Presentation has been obtained from sources which G2 generally considers reliable, but we make no representation or warranty, express or implied, as to the accuracy or completeness of any information herein. This Presentation has been prepared for informational purposes only and upon the express understanding that it will be used only for the purposes set forth in the Section captioned G2 Overview above. G2 expressly disclaims any and all liability which may be based on such information, errors therein or omissions there from. Securities offered through Western International Securities, Inc. Member FINRA & SiPC. G2 Securities and Western International Securities are separate and unaffiliated entities.