Technology & Business Services

Technology & Business Services Strategic Market Insights – Q3 2017 Report Technology & Business Services G2 Insights – IT Managed Services The IT Managed Services Market is expected to grow from $152 billion in 2017 to $258 billion by 2022, a CAGR of 11.1%. As the subsector continually grows, G2 has observed the following trends:

. Managed Service Providers Must Continue to Deliver Advanced Services . Inorganic Growth via M&A Drives Growth in Core Service Offerings . Increase in Adoption Rate Among Small and Medium-sized Enterprises (SMEs) . Service Providers with Domain and Industry Expertise Create Barriers to Entry and Value-Add . Shifting Focus on Hybrid and Multi-cloud Managed Services

Managed Service Providers Must Continue to Deliver Advanced Services

As growth of enterprise IT infrastructure persists, organizations continue to turn to MSPs to handle key elements of their IT needs. Outsourcing IT infrastructure, network, security, mobility, and communication needs allow enterprises to focus on their core competencies and increase efficiencies. By fulfilling these needs, MSPs have become a key factor in increasing the capacity of the enterprise’s IT personnel. For instance, companies are turning to MSPs for email hosting, customer relationship management (CRM) applications, storage, backup, recovery, and network monitoring. The trends are the results of emerging technological and customer demand changes in the market. A cloud-based deployment model offers higher agility when compared to that of a legacy on-premise deployment model. According to marketsandmarkets.com, cloud-based managed services are the fastest-growing deployment type in the managed services market and are expected to grow from $27B in 2017 to $54 by 2022, an expected CAGR of 15%.

Commoditization of MSPs that deliver advanced services, including cloud infrastructure management, application management, and business process outsourcing have continued to drive premium M&A values. In addition, increased demand for services around data analytics, business intelligence (BI), and advanced application monitoring have emerged as sought-after niche capabilities. Premiums have been increasingly found in MSPs that are able to cultivate sustainable core offerings based on niche capabilities, rising above the requisite network and software infrastructures.

Inorganic Growth via M&A Drives Growth in Core Service Offerings

The need for one-stop-shop MSPs has catalyzed healthy M&A activity within the sector. While partnerships can address shortcomings of certain solutions, most partnerships do not allow MSPs to scale rapidly or efficiently. Before embarking on inorganic means of growth via M&A, MSPs must understand the strengths and weaknesses of their business model, customer profile, and organic growth strategy before evaluating the business and financial health of a potential acquisition target. Inorganic growth via M&A, functions as a key method of obtaining additional advanced service offerings in an effort to provide end-to-end solutions for MSP providers.

Select Managed Service Providers >$10,000MM By Total Revenues <$200MM

Source: Research and Markets, MSP Insights, G2 Insights, S&P Capital IQ

www.g2cap.com 2 Technology & Business Services G2 Insights – IT Managed Services (continued)

Increase in Adoption Rate Among Small and Medium-sized Enterprises (SMEs)

SMEs have traditionally been slow to adopt managed services due to budget constraints, labor costs, lack of technological expertise, and cybersecurity challenges. However, as the number of MSPs continue to grow and fragment, SMEs are expected to adopt managed services at the fastest rate over the next few quarters as MSPs continue to court the SME demographic. Middle market MSPs have taken up the task of capturing and addressing the needs of technologically inefficient or unsophisticated SMEs such as installing or implementing hardware or software, managing and supporting legacy IT infrastructure, and providing overall data security.

Value-Added Service Providers with Domain and Industry Expertise Create Barriers to Entry

Industries sensitive to data security and compliance requirements offer a welcome market for MSPs to provide data security and credibility. These industries include: HIPAA compliance for healthcare organizations, PCI and Security compliance for merchants and service providers, FISMA and FedRAMP for government agencies, and SOX compliance for financial institutions. As these enterprises move to integrate or replace traditional IT infrastructures, MSPs capable of servicing these specialty security and compliance models can expect robust growth over the next five years.

Shifting Focus on Hybrid and Multi-cloud Managed Services

Cloud platforms offer undeniable cost efficiencies and operating functionalities. The emergence of cloud platforms brings a new trend, the implementation of hybrid cloud. The hybrid cloud enables enterprises to leverage better data management, improved compliance and security, and upgraded IT infrastructure management. By piecing together the best of public and private cloud services, enterprises are able to leverage the best of both worlds in a cost effective solution. Public cloud allows for mobile applications and an Internet of Things ecosystem while private cloud is better suited for higher security / sensitive data and mission-critical business applications. For instance, E-Commerce solutions along with niche marketing tools are best utilized via Software as a Service models such as Salesforce, Amazon Web Services, and Microsoft Azure, while all mission critical and sensitive applications are best deployed on-premises. Vendors and integrators that can offer the flexibility are in the best position to gain and service.

Real-time Pricing & Incentives Advanced Service Capabilities Service Advanced

Completeness of Offerings

Source: MSP Insights, Gartner, G2 Insights, S&P Capital IQ

www.g2cap.com 3 Technology & Business Services G2 Insights – E-Commerce Artificial Intelligence Major retailers and online businesses are evaluating the use of Artificial Intelligence (AI) to analyze, utilize, and monetize vast amounts of customer data. Artificial Intelligence Innovation

Valuable bi-products of E-Commerce can be seen in the massive quantities of customer data. As such, investors have contributed nearly $4.9 billion into AI startups in 2016, reflecting an increase of nearly 4.6x total investments in the subsector since 2012 according to CB Insights. AI software and services within the E-Commerce industry has expanded far past online chatbots (programs that provide online support and guidance for online shoppers). Today’s programs can be broken out into 11 categories: . Real-time Product Targeting . Conversational Commerce

. Real-time Pricing & Incentives . Predictive Merchandising . Natural Language Search . Sizing & Styling

. Visual Search . Multichannel Marketing

. In-store Visual Monitoring . Integrated Online & In-store Analytics . Location-based Marketing & Analytics

Select Artificial Intelligence in Commerce Market Map

Real-time Pricing & Real-time Product Targeting Natural Language Search Incentives

In-Store Visual Monitoring Visual Search

Conversational Commerce Predictive Merchandising

Multi-channel Marketing

Sizing & Styling

Location-based Marketing & Analytics Integrated Online & In-store Analytics

Source: CB insights, Square and Mercury Analytics, MSP Insights, G2 Insights, S&P Capital IQ

www.g2cap.com 4 Technology & Business Services Key Trading Statistics

FY 20171 LTM2 Median Median Median Number of EV / EV / Sector Enterprise Value Revenue EBITDA Companies Revenue EBITDA (MM) Growth Growth* Cloud Software & 20 2,594 11.9% (3.0%) 4.2x 14.2x Services Specialty Consulting 16 810 3.0% 11.3% 1.5x 12.7x Services E-Commerce 11 1,142 11.8% 20.8% 0.7x 12.7x IT Managed Services 11 2,258 7.0% 5.9% 1.3x 11.8x Business Process 14 2,530 5.8% 2.5% 2.0x 11.2x Outsourcing (BPO) Human Capital 16 1,434 3.6% 2.6% 0.5x 9.5x Management

1 Compared with values at September 30, 2016 Sector Summary in Millions USD (converted where necessary) 2 LTM Multiples as at September 30, 2016 Data sourced from S&P Capital IQ on September 30, 2017 * YoY growth calculations exclude companies with negative margins in either period considered.

Technology & Business Services Selected Industry Deals Q3 2017 Several notable transactions have already been completed or announced in the Technology & Business Services industry through Q3 2017. G2 has outlined select transactions below. . Datapipe, Inc., to be acquired by Rackspace Hosting (Pending) – Datapipe, a provider of managed public and private cloud services, was acquired by Rackspace, a larger competitor in the multi-cloud services sector. Rackspace’s management cited consolidation and expansion of its cloud management and hosting capabilities as its strategy behind the acquisition. Rackspace Hosting is a portfolio company of Apollo Global Management (NYSE:APO) while Datapipe’s former majority owner was ABRY Partners. . Pitney Bowes (NYSE: PBI) acquires Newgistics, Inc. (Sep. 2017) – On September 6, Newgistics, Inc. was acquired by Pitney Bowes from Littlejohn Fund IV, L.P. managed by Littlejohn & Co. LLC, for $475MM at $542.50 per share. This deal represents 1.0x in EV/Revenue. Pitney Bowes financed this deal through debt securities, term loans, other types of debit financing, along with cash on hand. . Principle Solutions Group acquired by Eliassen Group (Sep. 2017) – Principle Solutions Group, an Atlanta-based IT Staffing firm, was acquired by Eliassen Group, another IT and life sciences staffing firm. The acquisition allows Eliassen Group to expand its geographic presence and solidify its market share in the IT staffing space. Eliassen Group is backed by Riverside Partners, a Boston- based private equity group. . Tigerspike acquired by Concentrix Corporation (Jul. 2017) – Tigerspike, a global digital products company specializing in strategy, experience design, development, and systems integration, was acquired by Concentrix Corporation, a wholly owned subsidiary of SYNNEX Corporation (NYSE: SNX). The transaction aligns with Concentrix’s strategy to further invest in digital and enabling technology in an effort to build out its business intelligence capabilities.

Source: CRN, S&P Capital IQ

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

Cloud & Software Services

Date Closed Target Acquirer / Investor

Pending Cloud Technology Partners, Inc. Hewlett Packard Enterprise Company

Pending Datapipe, Inc. Rackspace Hosting, Inc.

Pending Folio Dynamics Inc. Envestnet, Inc.

Pending Livestream LLC Vimeo, LLC

Pending WorkWave, LLC Industrial and Financial Systems, IFS AB (publ)

Oct-17 OnX Enterprise Solutions Ltd. Cincinnati Bell Inc.

Marlin Equity Partners, LLC; Marlin Equity IV Oct-17 AppRiver, LLC LP

Sep-17 Accela, Inc. Berkshire Partners LLC

Sep-17 Bitium Inc. Google Inc.

Sep-17 i-on interactive, inc. Scribble Technologies Inc.

Sep-17 Edge Hosting, LLC DataBank Holdings, Ltd.

Sep-17 RackAlley LLC Hivelocity Ventures Corporation

Sep-17 Active Network, LLC Global Payments Inc.

Aug-17 CashStar, Inc. Blackhawk Network, Inc.

Aug-17 Lucernex, Inc. Accruent, LLC

Aug-17 UpThere, Inc. Western Digital Corporation

Aug-17 RedOwl Analytics, Inc. Forcepoint LLC

Palatine Private Equity LLP; Palatine Private Jul-17 The Bunker Secure Hosting Limited Equity Fund III LP

Jul-17 Observable Networks, Inc. Cisco Systems, Inc.

Jul-17 Quark Software Inc. Parallax Capital Partners, LLC

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on September 30, 2017

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

Specialty Consulting Services

Date Closed Target Acquirer / Investor

Pending May & Barnhard, PC Councilor- Buchanan & Mitchell

Pending Walthall CPAs Rea & Associates, Inc.

Pending Source Eight Limited Mitie Group plc

Pending Envision Business Consulting, LLC Strong-Bridge Consulting LLC

Pending The Advisory Board Company OptumInsight, Inc.

Pending Hein & Associates LLP Moss Adams LLP

Pending Global Insurance Management Company, LLC Coverys Inc

Oct-17 TwoFour Holdings LLC eClerx LLC

Oct-17 Interactive Broadband Consulting Group, LLC Accenture plc

Sep-17 Innovative Telecom Consultants, LLC Clarus Communications, L.L.C.

Sep-17 BC Consulting SAS T&P Consulting SAS

Sep-17 Lincoln Financial Management, LLC Arthur J. Gallagher & Co.

Sep-17 Exemplary Performance, LLC EntreQuest, Inc.

Sep-17 Career Resources Group, Inc. Lee Hecht Harrison, LLC

Sep-17 Integrated Data Storage, LLC ePlus Technology, inc.

Aug-17 HR OutSourcing, LLC Paychex, Inc.

Aug-17 Credo Business Consulting LLP Teneo Holdings LLC

Aug-17 OC&C Strategy Consultants Limited, French Office The Parthenon Group, LLC

Aug-17 Evans International Enterprises, Inc. Waterhouse Group, Inc.

Aug-17 Brand Learning Group Limited Accenture plc

Aug-17 ESPS Electrical Safety Program Solutions Inc. Danatec Educational Services Ltd.

Jul-17 MAYA Design, Inc. The Boston Consulting Group, Inc.

Jul-17 Headwaters SC, LP Ernst & Young LLP

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on September 30, 2017

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

E-Commerce Services Date Closed Target Acquirer / Investor

Pending Novicius Corp. Grown Rogue Unlimited, LLC

Pending Grand Junction, Inc. Target Corporation

Pending Numerex Corp. Sierra Wireless, Inc.

Pending BAM Technologies, LLC The Walt Disney Company

Pending BDNA Corporation Flexera Software LLC

Oct-17 Newgistics, Inc. Pitney Bowes Inc.

Oct-17 MaxPoint Interactive, Inc. Harland Clarke Holdings Corp.

Oct-17 Velocify, Inc. Ellie Mae, Inc.

Aug-17 Datacastle Corporation Carbonite, Inc.

Aug-17 Cycle Computing LLC Microsoft Corporation

Aug-17 RevStream Inc. (nka:Aptitude RevStream Inc.) Aptitude Software Limited

Aug-17 Data Intensity, LLC EQT Partners AB; EQT Mid Market US

Jul-17 Zetta, Inc. Arcserve (USA) LLC

Jul-17 Wisetail Alchemy Systems, LP

Jul-17 Waterfall International Inc. Upland Software, Inc.

Jul-17 Hudman Limited Advanced Computer Software Group Limited

Jul-17 Endeavor Commerce, Inc. Vendavo, Inc.

Jul-17 Covalent Data, Inc. Wellspring Worldwide Inc.

IT Managed Services

Date Closed Target Acquirer / Investor

Sep-17 InfoZen, Inc. ManTech International Corporation

Sep-17 Ally PLM Solutions Inc. PROLIM Global Corporation

Aug-17 Blue Canopy Group, LLC Jacobs Engineering Group Inc.

Aug-17 Tech Knowledge Solutions Inc Assumption Group

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on September 30, 2017

www.g2cap.com 8 Technology & Business Services Select M&A Activity – Pending & Closed

IT Managed Services (continued)

Date Closed Target Acquirer / Investor

Jul-17 Search Technologies Corp. Accenture plc

Jul-17 Argyle Technology Group LLC IVR Technology Group, LLC

Jul-17 Annese & Associates, Inc. ConvergeOne, Inc.

Jul-17 47Lining, LLC REAN Cloud LLC

Jul-17 InfoTrellis Inc. Mastech Digital, Inc.

Jul-17 Tribridge, Inc. UXC Eclipse (USA) Inc.

H.I.G. Capital, LLC; HIG Middle Market LBO Jul-17 NCI, Inc. Fund II

Business Process Outsourcing

Date Closed Target Acquirer / Investor

Pending Nets A/S Advent International Corporation

Pending Williams Lea Limited Advent International Corporation

Sep-17 iTech US, Inc. SharedLabs, Inc.

Sep-17 Proactive Contact Support B.V. BNP Paribas Fortis Private Equity; Mifratel BVBA

Aug-17 Eknovate, Inc. Feuji, Inc. Strategic Products and Services, LLC (nka:SPS, a Aug-17 ConvergeOne, Inc. ConvergeOne Company) Aug-17 DataBank IMX, LLC KYOCERA Document Solutions America, Inc

Aug-17 Zalaris ASA Undisclosed

Aug-17 ZeroChaos, LLC The Carlyle Group L.P.; Carlyle Partners VI, L.P.

Jul-17 Conduent Incorporated, Global Mobility Business Undisclosed

Jul-17 Nearsoft, Inc. Indecomm Global Services (India) Private Limited

Jul-17 Tigerspike Concentrix Corporation

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on September 30, 2017

www.g2cap.com 9 Technology & Business Services Select M&A Activity – Pending & Closed

Human Capital Management

Date Closed Target Acquirer / Investor

Pending Integrity HR, Inc. Epic Insurance Solutions Agency LLC

Pending CPA Global Limited Leonard Green & Partners, L.P.

Pending Sequent HR Consulting LLC Change 4 Growth, LLC

Global Technical Services, Inc. and Global Contract Oct-17 Novume Solutions, Inc. Professionals Inc. Sep-17 Principle Solutions Group, LLC Eliassen Group, LLC.

Sep-17 CETIS HR Path SAS

Sep-17 CDI Corp. AE Industrial Partners, LLC

Sep-17 Nationwide Temporaries, Inc. NSC Technologies, Inc.

Sep-17 Driving Ambition Inc. TransForce, Inc.

Sep-17 Smart Resources, Inc. BG Finance and Accounting, Inc.

Sep-17 Absolute Consulting, Inc. GSE Performance Solutions, Inc.

Sep-17 firstPRO, Inc. Staffing 360 Solutions, Inc.

Sep-17 AllStaff Staffing & Recruiting Malone Workforce Solutions

Sep-17 Teachers On Call, Inc. Kelly Services, Inc.

Sep-17 Ewing Consulting, Inc. Cooperative Personnel Services, Inc.

Aug-17 Halo Group, LLC Fahrenheit IT, Inc.

Aug-17 Gess & Partner GmbH JR Holding AG

Aug-17 Quadrant 4 System Corporation, Legacy Staffing Business Intellyk, Inc.

Aug-17 Lannick Contract Solutions Inc. Vaco, LLC

Gordon Dadds Group Limited (nka:Gordon Dadds Aug-17 Work Group plc Group plc)

Jul-17 Oasis Outsourcing Holdings Inc. Kelso & Company

Jul-17 The Tyton Group, LLC The Spencer Thomas Group LLC

Sector Summary in Millions USD (converted where necessary) Data sourced from S&P Capital IQ on September 30, 2017

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

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

Mean 44,097 48,042 1,439 8,526 4,597 17.6% 8,169 2.6x 4.2x 14.2x

Median 2,594 2,835 148 465 31 3.5% 674 1.2x 4.6x 13.7x

Aerohive Networks, Inc. NYSE:HIVE 160 220 35 161 (24) -14.8% 20 -0.8x 1.1x NA

Akamai Technologies, Inc. NASDAQ:AKAM 8,320 8,352 353 2,418 684 28.3% 651 1.0x 4.2x 13.7x

Amber Road, Inc. NYSE:AMBR 221 209 11 76 (11) -14.4% 19 -1.8x 3.3x NA

athenahealth, Inc. NASDAQ:ATHN 5,174 4,966 123 1,179 130 11.0% 258 2.0x 4.6x NM

Box, Inc. NYSE:BOX 2,502 2,584 165 453 (118) -26.0% 40 -0.3x 5.4x NA

Cisco Systems, Inc. NASDAQ:CSCO 129,759 166,534 11,708 48,005 14,723 30.7% 25,725 1.7x 2.5x 8.3x

Citrix Systems, Inc. NASDAQ:CTXS 11,680 11,639 845 3,441 987 28.7% 1,367 1.4x 3.7x 12.5x

Cogint, Inc. NASDAQ:COGT 314 271 19 210 (15) -6.9% 60 -4.1x 1.7x NA

Cornerstone OnDemand, Inc. NasdaqGS:CSOD 2,272 2,338 107 445 (45) -10.2% NA NA 5.1x NA

Instructure, Inc. NYSE:INST 948 974 26 134 (47) -35.4% NA NA 5.8x NA

Microsoft Corporation NasdaqGS:MSFT 533,337 573,740 7,663 89,950 30,432 33.8% 76,073 2.5x 5.4x 16.6x

Qualys, Inc. NasdaqGS:QLYS 1,665 1,944 131 212 52 24.8% NA NA 6.0x NM

Salesforce.com, inc. NYSE:CRM 66,222 67,141 1,949 9,388 464 4.9% 696 1.5x 7.0x NM

ServiceNow, Inc. NYSE:NOW 19,512 20,064 1,173 1,632 (32) -2.0% 1,140 -35.4x NM NA

Symantec Corporation NASDAQ:SYMC 24,051 20,163 2,306 4,310 714 16.6% 6,202 8.7x 5.0x 24.2x Synchronoss Technologies, NASDAQ:SNCR 556 433 181 477 54 11.4% 226 4.2x 2.5x 16.7x Inc. Twilio Inc. NYSE:TWLO 2,455 2,744 92 337 (35) -10.3% NA NA NM NA Wayside Technology Group, NASDAQ:WSTG 52 61 10 435 9 2.0% NA NA 0.2x 7.6x Inc. Zendesk, Inc. NYSE:ZEN 2,501 2,749 103 364 (84) -23.0% NA NA 6.9x NM

16.0x 6.0x 5.7x 13.9x 14.2x 14.0x 12.8x 4.7x 11.1x 5.0x 4.4x 12.2x 4.3x 4.4x 4.5x 12.0x 11.1x 10.8x 10.4x 4.3x 4.2x 4.2x 10.6x 10.3x 3.9x 4.0x 10.0x 9.7x 3.3x

8.0x REVENUE 3.0x S&P 500 S&P 500 6.0x EV EV / EBITDA 2.0x 4.0x

EV EV / TOTAL 1.0x 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 September 30, 2017

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

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

Mean 1,295 1,088 57 945 99 9.9% 290 5.1x 1.5x 12.7x

Median 810 660 16 519 72 10.1% 127 1.9x 1.2x 10.8x

Size (Millions USD) Leverage Valuation EBITDA Company Ticker Enterprise Market LTM LTM Margin LT Debt / EV / LTM EV / LTM Cash LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA Booz Allen Hamilton Holding NYSE:BAH 7,083 5,559 330 6,022 569 9.4% 1,784 3.1x 1.2x 12.4x Corporation CBIZ, Inc. NYSE:CBZ 1,089 878 1 839 90 10.7% 207 2.3x 1.2x 10.8x

CRA International, Inc. NasdaqGS:CRAI 324 338 21 353 31 8.7% NA NA 0.8x 10.0x

Ecology & Environment, Inc. NasdaqGM:EEI 41 51 11 101 6 5.6% 0 0.0x 0.4x 7.0x

Exponent, Inc. NasdaqGS:EXPO 1,744 1,906 90 320 76 23.6% NA NA 4.6x 20.4x

Franklin Covey Co. NYSE:FC 313 281 9 185 1 0.4% 38 46.1x 1.5x 26.7x

FTI Consulting, Inc. NYSE:FCN 1,712 1,369 158 1,782 160 9.0% 461 2.9x 1.0x 10.0x

Huron Consulting Group Inc. Nasdaq: HURN 1,116 728 9 725 97 13.3% 374 3.9x 1.7x 9.4x

ICF International, Inc. NASDAQ:ICFI 1,279 1,011 6 1,198 113 9.5% 230 2.0x 1.0x 10.5x

Navigant Consulting, Inc. NYSE:NCI 969 791 9 949 128 13.5% 177 1.4x 1.3x 8.4x

NV5 Global, Inc. NasdaqCM:NVEE 651 588 16 302 37 12.3% 67 1.8x 1.8x 15.4x

Resources Connection, Inc. NasdaqGS:RECN 401 416 50 581 39 6.7% 48 1.2x 0.7x 9.0x

Ricardo plc LSE:RCDO 642 591 36 457 69 15.1% 78 1.1x 1.5x 10.9x

The Advisory Board Company Nasdaq: ABCO 2,644 2,186 151 782 115 14.8% 567 4.9x 2.9x 14.1x

The Hackett Group, Inc. NasdaqGS:HCKT 444 439 16 262 41 15.6% 22 0.5x 1.8x 12.6x

Willdan Group, Inc. Nasdaq: WLDN 262 284 6 267 17 6.5% 2 0.1x 1.1x 15.6x

16.0x 2.5x 13.7x 13.8x 14.0x 13.2x S&P 500 12.5x 12.7x 2.0x 12.0x 10.9x 1.6x 10.0x 9.1x9.7x 9.5x 10.2x 1.3x 1.5x 1.4x 9.1x S&P 500 1.5x 1.3x 1.2x 1.2x 8.0x 1.1x 1.1x REVENUE 1.0x 6.0x 1.0x 0.9x

EV EV / EBITDA 4.0x 0.5x

2.0x EV EV / TOTAL 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 September 30, 2017

www.g2cap.com 12 Technology & Business Services Public Trading Metrics – E-Commerce Services

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

Mean 2,483 2,301 229 696 122 15.0% 732 3.3x 0.7x 12.7x

Median 1,142 1,076 74 334 24 15.4% 97 3.3x 0.7x 12.1x

CommerceHub, Inc. Nasdaq:CHUB.K 941 941 8 107 27 25.4% NA NA NM NM

InnerWorkings, Inc. Nasdaq:INWK 697 602 28 1,106 46 4.2% 149 3.2x 0.6x 14.5x

Kinaxis Inc. TSX:KXS 1,343 1,499 151 129 26 19.9% NA NA NM NM ModusLink Global Solutions, NASDAQ:MLNK 39 103 111 437 (10) -2.2% 60 -6.2x 0.1x NA Inc. Park City Group, Inc. NASDAQ:PCYG 227 236 14 19 4 22.9% 2 0.5x NM NM

PFSweb, Inc. Nasdaq:PFSW 193 159 13 277 13 4.8% 45 3.4x 0.7x 11.5x

Pitney Bowes Inc. NYSE:PBI 5,139 2,615 1,697 3,388 685 20.2% 3,563 5.2x 1.5x 7.1x

Shopify Inc. NYSE:SHOP 10,605 11,537 120 581 (36) -6.1% NA NA NM NA

SPS Commerce, Inc. NASDAQ:SPSC 818 977 129 213 23 10.9% NA NA NM NM

Web.com Group, Inc. NASDAQ:WEB 1,787 1,175 8 748 152 20.3% 634 4.2x 2.3x 12.1x

Wix.com Ltd. NASDAQ:WIX 3,082 3,266 124 391 (36) -9.1% 1 0.0x NM NA

3.0x 14.0x 12.7x 2.8x 12.1x S&P 500 11.3x 12.0x 2.5x 9.4x 2.1x 10.0x 9.3x 9.3x 7.6x S&P 500 2.0x 8.0x 1.6x 7.0x 7.2x 7.2x 1.4x REVENUE 1.5x 6.1x 1.4x 6.0x 1.1x 0.9x 0.9x 0.8x 1.0x 0.8x EV EV / EBITDA 0.8x 4.0x 0.5x

2.0x EV / TOTAL

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 September 30, 2017

www.g2cap.com 13 Technology & Business Services Public Trading Metrics – IT Managed Services

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

Mean 9,957 8,772 486 5,201 693 9.4% 1,477 2.6x 1.3x 11.8x

Median 2,258 1,643 154 4,968 224 10.5% 507 2.0x 1.3x 11.3x

CGI Group Inc. TSX:GIB.A 16,164 14,977 233 8,325 1,400 16.8% 1,322 0.9x 1.9x 11.3x

CSRA Inc. NYSE:CSRA 7,979 5,275 194 4,968 955 19.2% 2,549 2.7x 1.6x 10.6x

DXC Technology Company NYSE:DXC 29,725 24,449 2,517 11,590 1,218 10.5% 5,962 4.9x NM NM

Edgewater Technology, Inc. Nasdaq: EDGW 83 91 13 114 7 6.3% 5 0.7x 0.7x 11.3x

HCL Technologies Limited NSEI:HCLTECH 17,820 19,113 0 7,374 1,660 22.5% NA NA 2.4x NM

Insight Enterprises, Inc. Nasdaq:NSIT 1,953 1,643 195 6,022 224 3.7% 283 1.3x 0.3x 8.1x

Perficient, Inc. Nasdaq:PRFT 753 691 6 452 47 10.5% 68 1.4x 1.4x 13.1x

Presidio, Inc. Nasdaq:PSDO 2,258 1,290 28 2,818 210 7.5% 731 3.5x 0.8x 11.4x

Rimini Street, Inc. Nasdaq:RMNI 0 0 17 189 7 3.9% 50 6.8x NA NA

Virtusa Corporation Nasdaq:VRTU 1,190 1,106 154 881 53 6.0% 105 2.0x 1.1x 18.3x

4.0x 14.0x 12.9x 11.8x 3.6x 11.5x 3.5x 12.0x 11.1x 10.7x 2.9x 3.0x 9.9x 10.4x 2.6x 2.7x 2.7x 10.0x 2.6x 8.7x 8.2x 2.5x 2.3x 2.4x 2.4x 2.1x 8.0x 7.0x 1.9x 6.4x REVENUE 2.0x 6.0x S&P 500 S&P 500

1.5x EV EV / EBITDA 4.0x 1.0x 2.0x EV EV / TOTAL 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 September 30, 2017

www.g2cap.com 14 Technology & Business Services Public Trading Metrics – Business Process Outsourcing

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

Mean 13,357 14,429 867 5,143 1,043 13.7% 526 1.5x 2.0x 11.2x

Median 2,530 2,415 328 2,684 357 14.0% 273 0.8x 2.2x 10.4x

Size (Millions USD) Leverage Valuation EBITDA Company Ticker Enterprise Market LTM LTM Margin LT Debt / EV / LTM EV / LTM Cash LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA Automatic Data Processing, NASDAQGS:ADP 47,803 48,584 2,780 12,380 2,722 22.0% 2,002 0.7x 3.7x 16.5x Inc. Black Box Corporation NasdaqGS:BBOX 142 49 30 804 20 2.5% 124 6.1x 0.3x 8.0x Cognizant Technology Nasdaq:CTSH 39,457 42,844 1,577 14,444 2,876 19.9% 723 0.3x 2.4x 12.2x Solutions Corporation Convergys Corporation NYSE:CVG 2,530 2,415 168 2,861 357 12.5% 279 0.8x NM 6.6x

ExlService Holdings, Inc. NasdaqGS:EXLS 1,776 1,968 88 742 104 14.0% 45 0.4x 2.2x 15.1x

Genpact Limited NYSE:G 6,381 5,546 440 2,684 450 16.8% 1,016 2.3x 2.2x NM

Infosys Limited NSEI:INFY 26,360 31,493 3,575 10,499 2,835 27.0% NA NA 2.8x 10.3x Sykes Enterprises, NasdaqGS:SYKE 1,206 1,241 328 1,556 174 11.2% 267 1.5x 0.8x 7.5x Incorporated TeleTech Holdings, Inc. NasdaqGS:TTEC 2,100 1,914 79 1,396 171 12.3% 255 1.5x 1.3x 10.5x

Wipro Limited BSE:507685 17,398 20,817 787 8,379 1,692 20.2% 477 0.3x 1.9x 9.6x

WNS (Holdings) Limited NYSE:WNS 1,768 1,845 103 671 86 12.8% 75 0.9x 2.4x 15.6x Automatic Data Processing, NASDAQGS:ADP 47,803 48,584 2,780 12,380 2,722 22.0% 2,002 0.7x 3.7x 16.5x Inc. Black Box Corporation NasdaqGS:BBOX 142 49 30 804 20 2.5% 124 6.1x 0.3x 8.0x Cognizant Technology Nasdaq:CTSH 39,457 42,844 1,577 14,444 2,876 19.9% 723 0.3x 2.4x 12.2x Solutions Corporation

3.0x 16.0x 14.2x 2.6x 14.0x 2.5x 2.0x 11.3x 2.1x 11.7x 11.2x 2.1x 12.0x 10.7x 11.6x10.7x 2.0x 2.1x 2.1x 10.3x 2.0x 1.8x1.9x 10.0x 10.0x 1.7x 1.7x 8.6x 9.0x

8.0x REVENUE 1.5x S&P 500 S&P 500

6.0x 1.0x EV EV / EBITDA 4.0x 0.5x

2.0x EV / TOTAL

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 September 30, 2017

www.g2cap.com 15 Technology & Business Services Public Trading Metrics – Human Capital Management

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

Mean 3,704 3,357 223 6,680 345 4.8% 548 1.3x 0.5x 9.5x

Median 1,434 1,509 45 2,570 147 4.9% 128 1.0x 0.5x 9.4x

Size (Millions USD) Leverage Valuation EBITDA Company Ticker Enterprise Market LTM LTM LT Debt / EV / LTM EV / LTM Cash Margin LT Debt Value Cap Revenue EBITDA EBITDA Revenue EBITDA Adecco Group AG SWX:ADEN 14,351 13,250 1,264 26,677 1,395 5.2% 1,511 1.1x 0.5x 10.0x Barrett Business Services, NASDAQ:BBSI 398 412 18 882 30 3.4% 4 0.1x 0.5x 12.2x Inc. BG Staffing, Inc. AMEX:BGSF 186 145 0 257 22 8.7% 39 1.7x 0.6x 6.9x

Conduent Incorporated NYSE:CNDT 5,256 3,293 309 6,159 457 7.4% 2,071 4.5x 0.8x 10.7x Computer Task Group, NASDAQ:CTG 76 84 12 308 6 1.9% 3 0.5x 0.2x 9.8x Incorporated Hays plc LSE:HAS 3,515 3,665 145 6,599 299 4.5% NA NA 0.5x 7.7x

Hudson Global, Inc NASDAQ:HSON 38 46 15 425 4 0.9% NA NA 0.1x 9.4x

Kelly Services, Inc. NASDAQ:KELY.A 894 954 61 5,176 99 1.9% NA NA 0.2x 8.5x

Kforce Inc. NASDAQ:KFRC 635 511 4 1,337 74 5.5% 128 1.7x 0.0x 8.7x

ManpowerGroup Inc. NYSE:MAN 8,268 7,863 667 20,353 836 4.1% 471 0.6x 0.4x 8.4x

On Assignment, Inc. NYSE:ASGN 3,395 2,835 19 2,530 263 10.4% 580 2.2x 1.3x 11.9x

PageGroup plc LSE:PAGE 1,946 2,065 116 1,680 155 9.2% NA NA 1.1x 11.8x

Randstad Holding NV ENXTAM:RAND 13,185 11,336 374 25,439 1,138 4.5% 1,135 1.0x 0.5x 10.8x

Robert Half International Inc. NYSE:RHI 6,055 6,352 298 5,199 592 11.4% 1 0.0x 1.1x 9.1x

TrueBlue, Inc. NYSE:TBI 922 840 29 2,610 139 5.3% 87 0.6x 0.4x 7.2x Volt Information Sciences, AMEX:VISI 146 66 16 1,248 6 0.5% NA NA 0.1x NM Inc.

14.0x 2.5x 11.3x 12.0x 11.6x 9.8x 10.6x 11.2x 10.7x 2.0x 10.0x 9.5x 8.6x 8.3x 1.5x S&P 500 8.0x 6.7x 5.3x REVENUE 6.0x S&P 500 1.0x 0.7x 0.6x 0.6x EV / EV EBITDA 0.6x 0.6x 0.5x 4.0x 0.4x 0.5x 0.5x 0.5x 0.5x 0.3x

2.0x EV EV / TOTAL 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 September 30, 2017

www.g2cap.com 16 Technology & Business Services Market & Industry Trends

% Change in Personal DPI

According to the Federal Reserve’s readily available Consumer Price Index’s All Urban Consumer Index has steadily increased, indicating rising cost-of-living standards. The rise in consumer spending, increasingly facilitated through tech-enabled means, functions as a leading indicator for the Technology & Business Services industry.

250 245 240 235

230 1984=100 - 225 220 215

Index 1982 Index 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 Q1' 18 Data sourced through S&P Capital IQ on September 30, 2017

Last 5 Year EV / EBITDA Trend by Industry

The Technology and Business Services sector has generally outperformed the S&P 500 index. Cloud Software & Services comparables led the sector followed IT Managed Services, Specialty Consulting Services, E- Commerce Services, Business Process Outsourcing, and Human Capital Management.

20.0x

15.0x

10.0x EV EV / EBITDA 5.0x

0.0x Q1 '12 Q3 '12 Q1 '13 Q3 '13 Q1 '14 Q3 '14 Q1 '15 Q3 '15 Q1 '16 Q3 '16 Q1 '17 Q3 '17 ^SPX BPO Human Capital Management Specialty Consuling Cloud E-Commerce Services IT Managed Services Data sourced through S&P Capital IQ on September 30, 2017

www.g2cap.com 17 Technology & Business Services M&A Activity – Middle Market

Though mid market deal volumes have come down off historical highs, frothy debt availability continues to drive premium valuations.

US PE Buyout Activity by Quarter

900 68%

800 66%

700 64%

313

300

289

313

340

308

257

295

278

294 301 600 271

62%

302 282

500 242 234

198 60% 224

400 195

58% On % Buyout of

300 -

Deal Value Deal Value ($MM)

529

520

516

514

502

501

495

494 488

487 56%

Add 482

200 476

408

407

405

400

381 340 100 322 54% 0 52% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2013 2014 2015 2016 2017* Add-on Non Add-on Add-On % of Buyout

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 Q3 2017 Report. US M&A Transaction Multiples

$12 10.7x 10.5x 10.1x $10 9.1x 9.3x 9.2x 8.5x 8.1x $8

5.8x $6 5.5x 5.7x 5.4x 5.2x 5.2x 5.3x 4.7x 4.7x 4.6x 4.5x 4.0x 3.8x 3.8x 4.0x

Deal Value Deal Value ($B) $4 3.5x

$0 2010 2011 2012 2013 2014 2015 2016 2017* Debt / EBITDA Equity / EBITDA

*Sourced through PitchBook Q3 2017 Report

www.g2cap.com 18 Technology & Business Services Selected Ongoing G2 Projects

G2 has a robust backlog of mandates ranging across its buy-side, sell-side, capital markets, and restructuring service offerings.

. Project Rover – G2 is currently advising a leading IT Project Rover staffing and service provider based in North America Sell-Side in a sell-side process. The company also offers IT, engineering, and life sciences staff augmentation, Human Capital payroll, high hazard payroll, and 1099 compliance Management services. Prior to G2’s sell-side mandate, the Client retained G2 as a buy-side advisor and successfully executed a bolt-on acquisition in 2017.

. Project Bot – G2 is currently advising an advanced, Project Bot AMR, E-Commerce fulfillment and logistics provider in a buy-side process. Search criteria includes: Buy-Side . Core Services: Fulfillment & distribution, pick- E-Commerce Services pack-ship services, warehousing services . Value-Added Services: Freight, and billing management, EDI/Integration, Customer Care

. Project Daytona – G2 is currently advising a financial Project Daytona and operational specialty consultancy on a sell-side Sell-Side process. The firm provides support ranging from COO / CFO to accounting services for emerging life science Specialty Financial and renewable energy companies. Advisory Consultancy

. Project Medical – G2 is currently advising a provider Project Medical of integrated health technology management services Buy-Side in a buy-side process. Search criteria includes: . Core Services: Repair and maintenance of Health Technology biomedical, ultrasound, x-ray, and nuclear Management Services medicine equipment . Value-Added Services: Equipment sales, relocation, procurement, and regulatory consulting and compliance

www.g2cap.com 19 Technology & Business Services Selected Q3 Transaction Highlight G2 successfully advised the full sale of an energy and utility services consulting firm to a strategic portfolio company of a national growth equity firm.

G2 Capital Advisors acted as the exclusive Strategic and Sell-Side Advisor to EIG a portfolio company of

. Client – EIG provides a comprehensive range of consultative services, including project management, engineering, systems analysis and planning, field services and specialty services to traditional utility companies, project developers, regulatory and government agencies, energy companies, financial organizations, and a wide range of other entities within the energy industry. EIG was founded in 2000 and employs a growing team. . Situation – EIG’s founders, John Marczewski and Charles “Chuck” Wilson, were interested in seeking a recapitalization of the business with the right partner who truly values EIG’s deep team and has the ability to expand upon EIG’s established leadership in the energy sector. . Engagement – G2 served as the exclusive financial advisor to EIG, responsible for running an efficient sale process. . Outcome – The transaction was successfully executed through a sale to EN Engineering, a portfolio company of General Atlantic. EN Engineering provides comprehensive and dependable engineering, consulting, and automation services to utilities, pipeline companies, and industrial customers. The company operates in key energy and manufacturing regions across the United States.

www.g2cap.com 20 G2 Overview Investment Banking and Restructuring Advisory

G2 Capital Advisors provides C-level led investment banking and restructuring advisory services to middle market institutional investors and companies. G2 offers a comprehensive suite of investment banking services, creating a one-stop shop with non-conflicting strategic alternatives perspectives on what is truly best fit for each client.

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 Jim Bullion

. 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 . Telecommunications

G2 Capital Advisors offers an integrated and complementary set of financial and corporate advisory services to assist our clients through the lifecycle of a business.

www.g2cap.com 21 Reference Contact & Glossary of Terms

Matt Konkle, Managing Director Jeffrey Unger, CEO [email protected] [email protected] 317.371.6608 617.918.7929

Scott Yen, Director Theodore Bang, Analyst [email protected] [email protected] 415.902.6659 617.610.0918

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.