COVID-19 Valuation Impact Report

COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

martinwolf Analysis

martinwolf Global M&A Advisors AZ | NY www.martinwolf.com

COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Overview

COVID-19 has dramatically and abruptly affected markets across the globe. While volatility continues, we are now one month out from the market lows achieved on March 23.

To help provide context on today’s valuation conditions, martinwolf is issuing a special report offering a combination of qualitative insight from industry leaders and quantitative data adapted from our regular Index and Scoreboard publications.

Everyone is experiencing changes—but every business, sector and industry is experiencing those changes differently. To maximize your ability to preserve and create value, make sure you understand what today’s market means for you.

We encourage you to review closely and contact us with any questions.

Scoreboard - COVID-19 Public Company Valuation Impact

Today Pre-COVID Low IT & IT-ENABLED OUTSOURCED SERVICES - EV/LTM EBITDA 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) IT Services - North America 11.56x (-25.4%) 15.51x 10.86x (-30.0%) IT Services - Europe 7.66x (-20.6%) 9.65x 6.92x (-28.3%) IT Services - India 6.59x (-34.0%) 9.99x 5.90x (-40.9%) IT Staff Augmentation 7.28x (-29.4%) 10.31x 5.71x (-44.6%)

IT SUPPLY CHAIN SERVICES - EV/LTM EBITDA IT Solution Providers - North America 8.89x (-11.4%) 10.04x 7.41x (-26.2%) IT Solution Providers - Europe 9.66x (-15.2%) 11.38x 7.57x (-33.5%) IT Products Distributors 7.01x (-17.5%) 8.50x 6.30x (-25.8%)

SOFTWARE - EV/LTM REVENUE Note: Revenue Multiples Below SaaS 7.82x (-24.8%) 10.40x 6.39x (-38.5%) Enterprise Applications 5.99x (-16.9%) 7.21x 4.59x (-36.3%) Cyber Security 5.92x (-20.3%) 7.43x 4.82x (-35.0%)

*Note: Median multiples. All dates 2020. "Pre" denotes multiple as of Feb. 19 close. Full Scoreboard on Pages 10-20.

Contact: Matthew Putzulu, Vice President [email protected] Page 2 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Key Takeaways

Buyers and sellers we have spoken with in the last several weeks— entrepreneurs, seasoned executives and investors—have been collecting data and focusing on measuring the impact of this crisis on their businesses.

A few key takeaways have emerged:

Consider Both Short-Term and Long-Term Impacts • The current crisis may cause short-term cash concerns as projects are pushed out and customers reduce their own expenses. But it also presents a long-term opportunity by highlighting the importance of reliable and scalable infrastructure as the broader economy shifts to remote work. Companies that are able to grow their managed and Software-as-a-Service infrastructure can emerge from this crisis in a higher multiple class if they are seen as essential businesses.

Expect a More Detailed Diligence Process • The uncertainty around COVID-19 adds substantial risk to transactions— and both buyers and sellers need to be prepared for an extended diligence process as both participants try to quantify how they will be affected. Expect average transaction duration to lengthen, increasing risk.

COVID-19 Upsets Traditional Valuation Rules • Historic strengths and weaknesses have shuffled thanks to the new economic conditions. For example, the most valuable part of solution providers has historically been their project business—value-added services adding stickiness and dependable, recurring revenue. Today, it’s the opposite. The work from home transition has boosted product sales, while sidelining most onsite work. We see that in our public company valuation statistics—the median valuation for IT Staff Augmentation firms, which rely heavily on project-based work, is down 29% from pre-COVID-19; median valuation for IT Solution Providers, which remain product heavy, is down 11%.

Different Business Are Impacted on Different Timelines • If you believe your business has not been impacted, it’s likely that there is a lag between your customers feeling the effects and your company. For example, many companies are recording record first quarter results but just now seeing changes in customer behavior. Use this time to be proactive and carefully monitor your customers and pipeline for the next 3 – 6 months.

Contact: Matthew Putzulu, Vice President [email protected] Page 3 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

COVID-19 Impacts Debt Availability • Impact of COVID-19 on future transactions is not just limited to total valuation. While credit remains available—especially for agreed upon/committed deals, markets are tighter. We anticipate deal leverage components to end up at least one turn lower, and expect the same loan post-COVID-19 to cost more—at least 50-75 basis points for blue-chips. This affects IRR—both for Private Equity and Strategic buyers.

As With Total Valuation, Deal Structure is Also Impacted • Another sign of how conditions have changed is that with the uncertainty surrounding COVID-19’s long-term impacts on the economy and individual businesses, buyers expect sellers to share more of the future risk post-transaction. This can take the form of increased levels of rollover or retained equity or with an increased portion of deferred or continent payments such as earnouts.

Smaller Companies are Less Impacted • The liquidity of public companies—and their reporting requirements— mean that they are more directly and immediately impacted by market fluctuations. Companies in the lower mid-market space may see smaller reductions in value, perhaps on the order of 10-20%.

Deal Activity

Preliminary statistics indicate that global M&A activity is down approximately 28 percent in dollar volume (14 percent in number). This is driven by a decline in the number of large megadeals as well as presumptive downward negotiations in price. martinwolf’s IT-specific deal flow charts indicate year-to-date IT Services transactions are similar in number to last year but with less than half the total disclosed deal value. IT Supply Chain transactions are in much sharper decline, with the number of transactions down 33% and total disclosed deal value off 50%. Expect to see more news of deals stalling or being held back through this period of volatility—and, depending on the recovery timeline, a potential rapid acceleration as virus uncertainty abates.

Data

The martinwolf IT Index p. 5-7 Global M&A Values & Volumes p. 8-9 Scoreboard Public Impact Report p. 10-20

Contact: Matthew Putzulu, Vice President [email protected] Page 4 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Contact: Matthew Putzulu, Vice President [email protected] Page 5 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Contact: Matthew Putzulu, Vice President [email protected] Page 6 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Contact: Matthew Putzulu, Vice President [email protected] Page 7 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Contact: Matthew Putzulu, Vice President [email protected] Page 8 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Contact: Matthew Putzulu, Vice President [email protected] Page 9 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

Scoreboard - COVID-19 Public Company Valuation Impact

*Note: Median multiples. All dates 2020. "Pre" denotes multiple as of Feb. 19 close.

Contact: Matthew Putzulu, Vice President [email protected] Page 10 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

IT Services - North America As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Perficient, Inc. 14.1x (-39.3%) 23.3x 11.7x (-49.8%) Virtusa Corporation 11.6x (-33.0%) 17.2x 10.9x (-37.1%) Unisys Corporation 2.2x (-27.5%) 3.0x 2.0x (-34.3%) Genpact Limited 14.6x (-23.4%) 19.1x 11.5x (-39.7%) DXC Technology Co. 3.5x (-23.3%) 4.6x 3.2x (-30.5%) RCM Technologies, Inc. 7.1x (-22.2%) 9.1x 6.6x (-27.3%) Hackett Group, Inc. 11.3x (-20.5%) 14.2x 8.5x (-40.4%) Information Services Group, Inc. 9.4x (-21.4%) 12.0x 8.9x (-25.5%) CGI Inc. Class A 11.4x (-19.2%) 14.1x 9.2x (-34.9%) Accenture Plc Class A 14.7x (-19.7%) 18.3x 12.1x (-33.7%) ICF International, Inc. 9.7x (-19.3%) 12.0x 9.0x (-24.7%) EPAM Systems, Inc. 27.5x (-15.2%) 32.4x 22.2x (-31.5%) CACI International Inc Class A 15.3x (-13.1%) 17.6x 12.5x (-29.3%) ManTech International Corporation Class A 14.6x (-6.0%) 15.5x 12.4x (-20.0%) Booz Allen Hamilton Holding Corporation Class A 16.6x (-1.2%) 16.8x 13.2x (-21.6%)

Median 11.6x (-25.4%) 15.5x 10.9x (-30.0%) Mean 12.2x (-19.9%) 15.3x 10.3x (-32.9%)

Source: FactSet; based on consensus estimates.

Contact: Matthew Putzulu, Vice President [email protected] Page 11 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

IT Services - Europe As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Alten SA 8.6x (-40.9%) 14.5x 7.8x (-46.4%) Amadeus IT Group SA Class A 9.6x (-36.7%) 15.2x 8.9x (-41.5%) Wavestone SA 7.1x (-28.4%) 9.9x 7.1x (-28.2%) Endava Plc Sponsored ADR Class A 55.6x (-28.3%) 77.5x 41.0x (-47.0%) Capgemini SE 6.7x (-28.1%) 9.4x 5.5x (-41.3%) Aubay SA 6.4x (-22.7%) 8.2x 4.4x (-46.1%) Columbus A/S 5.8x (-24.7%) 7.7x 4.6x (-40.3%) Sage Group plc 14.5x (-24.4%) 19.2x 11.8x (-38.6%) Sopra Steria Group SA 6.1x (-22.3%) 7.8x 5.2x (-33.1%) Kainos Group PLC 32.3x (-22.7%) 41.7x 25.3x (-39.5%) Indra Sistemas, S.A. Class A 6.2x (-22.6%) 8.0x 5.9x (-25.6%) Devoteam SA 7.3x (-22.3%) 9.3x 5.9x (-37.3%) Globant SA 30.5x (-17.8%) 37.1x 21.2x (-42.9%) Neurones SA 6.1x (-18.7%) 7.6x 5.1x (-32.2%) TietoEVRY Oyj 9.2x (-16.4%) 11.0x 8.4x (-23.3%) Allgeier SE 8.1x (-16.5%) 9.7x 6.7x (-30.2%) Prodware SA 4.8x (-16.7%) 5.7x 4.6x (-19.0%) Atos SE 5.3x (-15.0%) 6.3x 4.6x (-26.6%) Reply S.p.A. 13.7x (-14.9%) 16.0x 9.7x (-39.8%) Netcompany Group A/S 26.7x (-0.6%) 26.9x 19.6x (-26.9%) Altran Technologies SA 9.7x 0.6% 9.6x 9.5x (-1.2%) NNIT A/S 6.9x 7.5% 6.5x 4.6x (-28.1%)

Median 7.7x (-20.6%) 9.6x 6.9x (-28.3%) Mean 13.0x (-21.3%) 16.6x 10.3x (-37.6%)

Source: FactSet; based on consensus estimates.

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IT Services - India As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Mastek Limited 3.1x (-59.2%) 7.7x 2.4x (-68.6%) Cyient Limited 3.3x (-57.2%) 7.8x 3.6x (-54.1%) KPIT Technologies Limited 4.1x (-50.9%) 8.3x 3.2x (-61.6%) Sonata Software Limited 4.8x (-45.5%) 8.7x 3.6x (-58.7%) NIIT Technologies Limited 9.1x (-44.4%) 16.3x 6.2x (-61.8%) Tech Mahindra Limited 6.7x (-44.1%) 12.0x 6.2x (-48.5%) Persistent Systems Limited 5.2x (-44.0%) 9.3x 5.0x (-46.0%) Birlasoft Limited 4.5x (-36.4%) 7.0x 3.0x (-56.6%) Oracle Financial Services Software Limited 6.1x (-38.6%) 10.0x 4.4x (-56.3%) Zensar Technologies Limited 4.6x (-37.7%) 7.4x 3.6x (-51.5%) L&T Technology Services Ltd. 10.8x (-37.3%) 17.2x 9.4x (-45.4%) Wipro Limited 6.6x (-34.0%) 10.0x 5.7x (-43.0%) Larsen & Toubro Infotech Ltd 12.3x (-31.4%) 17.9x 10.7x (-40.1%) Mindtree Limited 11.6x (-29.9%) 16.6x 11.0x (-33.5%) Sasken Technologies Ltd 6.1x (-29.9%) 8.7x 4.3x (-50.2%) Mphasis Limited 7.9x (-27.9%) 11.0x 7.2x (-34.3%) HCL Technologies Limited 8.0x (-25.5%) 10.7x 6.9x (-35.3%) Infosys Limited 11.8x (-22.0%) 15.2x 9.1x (-40.4%) Allied Digital Services Limited 2.0x (-27.1%) 2.8x 1.8x (-34.7%) Cognizant Technology Solutions Corporation Class A 8.7x (-24.5%) 11.5x 6.8x (-41.4%) Tata Consultancy Services Limited 15.7x (-19.8%) 19.6x 13.7x (-30.3%) Sonda S.A. 7.1x (-16.2%) 8.5x 6.2x (-26.7%) 3i Infotech Limited 6.4x (-5.5%) 6.8x 5.9x (-12.7%)

Median 6.6x (-34.0%) 10.0x 5.9x (-40.9%) Mean 7.2x (-33.6%) 10.9x 6.1x (-44.2%)

Source: FactSet; based on consensus estimates.

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IT Staff Augmentation As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Insperity, Inc. 7.1x (-45.1%) 12.9x 5.1x (-60.5%) TechnoPro Holdings Inc. 10.9x (-34.9%) 16.7x 10.0x (-40.3%) ManpowerGroup Inc. 6.3x (-29.0%) 8.9x 5.3x (-40.4%) Robert Half International Inc. 7.5x (-26.1%) 10.1x 5.8x (-42.6%) PageGroup PLC 6.9x (-28.4%) 9.6x 5.6x (-41.8%) ASGN Inc 7.6x (-27.7%) 10.5x 6.8x (-35.8%) Kelly Services, Inc. Class A 4.1x (-25.4%) 5.4x 3.1x (-42.2%) Heidrick & Struggles International, Inc. 3.0x (-28.7%) 4.3x 2.3x (-46.7%) Mastech Digital, Inc. 12.6x (-18.4%) 15.5x 9.7x (-37.4%) Kforce Inc. 9.2x (-15.0%) 10.8x 7.9x (-27.1%)

Median 7.3x (-29.4%) 10.3x 5.7x (-44.6%) Mean 7.5x (-28.3%) 10.5x 6.2x (-41.3%)

Source: FactSet; based on consensus estimates.

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IT Solution Providers - North America As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) ePlus inc. 9.0x (-26.9%) 12.3x 6.7x (-45.7%) CDW Corp. 13.4x (-22.0%) 17.2x 11.8x (-31.5%) Insight Enterprises, Inc. 9.3x (-10.4%) 10.4x 7.9x (-24.5%) Pivot Technology Solutions, Inc. 5.9x (-10.9%) 6.6x 5.3x (-19.5%) PC Connection, Inc. 7.9x (-8.3%) 8.6x 6.9x (-19.7%) Converge Technology Solutions Corp. 8.8x (-9.1%) 9.6x 8.2x (-15.4%)

Median 8.9x (-11.4%) 10.0x 7.4x (-26.2%) Mean 9.1x (-16.2%) 10.8x 7.8x (-27.9%)

Source: FactSet; based on consensus estimates.

Contact: Matthew Putzulu, Vice President [email protected] Page 15 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets

IT Solution Providers - Europe As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Datatec Limited 4.9x (-30.3%) 7.1x 4.9x (-31.1%) Byte Computer ABEE 8.2x (-27.6%) 11.4x 6.7x (-41.0%) SoftwareONE Holding Ltd. 13.2x (-26.3%) 17.9x 8.8x (-51.2%) Crayon Group Holding ASA 15.8x (-22.7%) 20.5x 9.0x (-56.0%) Computacenter Plc 7.4x (-22.3%) 9.5x 4.7x (-50.4%) Dustin Group AB 9.7x (-22.8%) 12.5x 9.0x (-28.2%) Atea ASA 9.1x (-20.3%) 11.4x 6.2x (-45.2%) CANCOM SE 12.9x (-17.7%) 15.6x 10.4x (-33.7%) Softcat Plc 22.7x (-15.0%) 26.7x 17.9x (-32.9%) Plaisio Computers SA 9.7x (-13.0%) 11.1x 7.6x (-32.1%) Bechtle AG 19.4x (-8.3%) 21.2x 14.2x (-33.0%) Asseco Poland S.A. 5.0x (-4.9%) 5.2x 4.3x (-18.4%) Comarch S.A. 6.6x (-4.3%) 6.9x 5.6x (-18.0%)

Median 9.7x (-15.2%) 11.4x 7.6x (-33.5%) Mean 11.1x (-18.3%) 13.6x 8.4x (-38.3%)

Source: FactSet; based on consensus estimates.

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IT Distributors As of April 23, 2020 COVID-19 Impact on EV/EBITDA Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) SYNNEX Corporation 5.8x (-29.1%) 8.2x 5.9x (-28.3%) Arrow Electronics, Inc. 6.9x (-22.1%) 8.8x 6.2x (-29.2%) ScanSource, Inc. 7.1x (-20.8%) 9.0x 6.4x (-29.5%) Avnet, Inc. 6.5x (-16.8%) 7.8x 5.8x (-25.3%) Anixter International Inc. 9.6x (-6.3%) 10.3x 8.5x (-17.3%) Tech Data Corporation 7.7x (-4.1%) 8.0x 6.5x (-18.4%)

Median 7.0x (-17.5%) 8.5x 6.3x (-25.8%) Mean 7.3x (-16.3%) 8.7x 6.6x (-24.5%)

Source: FactSet; based on consensus estimates.

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Software as a Service As of April 23, 2020 COVID-19 Impact on EV/Revenue Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Cornerstone Ondemand, Inc. 3.0x (-49.4%) 6.0x 2.6x (-56.4%) Zuora, Inc. Class A 3.5x (-42.7%) 6.1x 2.9x (-52.9%) Paylocity Holding Corp. 9.2x (-42.2%) 16.0x 8.4x (-47.3%) Paycom Software, Inc. 14.7x (-37.7%) 23.5x 12.0x (-48.9%) Cloudera, Inc. 2.5x (-31.6%) 3.7x 2.2x (-40.4%) Envestnet, Inc. 3.8x (-30.4%) 5.5x 3.4x (-38.3%) Blucora, Inc. 1.3x (-31.3%) 2.0x 1.1x (-45.2%) HubSpot, Inc. 8.2x (-30.9%) 11.8x 6.2x (-47.6%) Fair Isaac Corporation 8.4x (-28.1%) 11.7x 6.6x (-43.4%) Workday, Inc. Class A 8.9x (-27.8%) 12.3x 7.9x (-35.9%) Splunk Inc. 8.6x (-24.3%) 11.3x 7.4x (-34.6%) Sage Group plc 3.7x (-24.4%) 4.9x 3.0x (-38.6%) New Relic, Inc. 4.7x (-18.3%) 5.8x 3.7x (-35.5%) salesforce.com, inc. 7.5x (-21.5%) 9.5x 6.9x (-27.4%) Xero Limited 18.5x (-18.5%) 22.7x 12.9x (-43.1%) Zendesk, Inc. 9.9x (-20.3%) 12.4x 7.7x (-37.7%) Twilio, Inc. Class A 11.3x (-17.3%) 13.6x 9.2x (-32.3%) ServiceNow, Inc. 16.8x (-17.0%) 20.2x 14.4x (-28.9%) SS&C Technologies Holdings, Inc. 4.5x (-15.6%) 5.3x 3.6x (-31.6%) Software AG 2.3x (-9.6%) 2.5x 1.7x (-34.2%) NICE Ltd 7.0x (-6.1%) 7.5x 5.6x (-25.3%) Coupa Software, Inc. 25.8x (-7.4%) 27.8x 22.0x (-21.1%) Slack Technologies, Inc. Class A 16.0x (-3.7%) 16.6x 14.8x (-10.5%) LogMeIn, Inc. 3.5x (-0.8%) 3.5x 3.2x (-7.5%)

Median 7.8x (-24.8%) 10.4x 6.4x (-38.5%) Mean 8.5x (-22.4%) 10.9x 7.1x (-35.4%)

Source: FactSet; based on consensus estimates.

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Enterprise Applications As of April 23, 2020 COVID-19 Impact on EV/Revenue Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Manhattan Associates, Inc. 5.7x (-32.0%) 8.4x 4.3x (-48.4%) Aspen Technology, Inc. 11.5x (-24.4%) 15.2x 9.5x (-37.4%) Hewlett Packard Enterprise Co. 0.8x (-22.4%) 1.1x 0.8x (-28.6%) VMware, Inc. Class A 5.3x (-21.2%) 6.7x 4.5x (-33.1%) Tenable Holdings, Inc. 6.0x (-16.9%) 7.2x 4.6x (-36.3%) International Business Machines Corporation 2.2x (-14.2%) 2.5x 1.9x (-25.8%) SAP SE 4.9x (-15.1%) 5.8x 4.2x (-27.1%) Intuit Inc. 9.4x (-15.6%) 11.1x 7.0x (-37.0%) Adobe Inc. 14.1x (-12.8%) 16.2x 12.9x (-20.1%) Microsoft Corporation 9.5x (-8.7%) 10.4x 7.4x (-28.3%) Oracle Corporation 5.0x (-6.3%) 5.3x 4.3x (-18.3%) Veeva Systems Inc Class A 25.6x 13.6% 22.6x 18.0x (-20.3%) Citrix Systems, Inc. 6.5x 15.5% 5.6x 5.6x (-0.5%)

Median 6.0x (-16.9%) 7.2x 4.6x (-36.3%) Mean 8.2x (-9.8%) 9.1x 6.5x (-27.9%)

Source: FactSet; based on consensus estimates.

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Cyber Security As of April 23, 2020 COVID-19 Impact on EV/Revenue Multiples Today Pre-COVID Low Company 4/23 (vs. Pre) 2/19 3/23 (vs. Pre) Techpoint, Inc. 1.5x (-50.6%) 3.0x 1.3x (-57.5%) SailPoint Technologies Holdings, Inc. 4.8x (-35.8%) 7.5x 4.4x (-41.6%) SecureWorks Corp. Class A 1.3x (-36.3%) 2.0x 1.3x (-36.0%) Varonis Systems, Inc. 7.4x (-31.2%) 10.7x 6.3x (-41.1%) FireEye, Inc. 2.6x (-29.3%) 3.7x 2.4x (-35.9%) Mimecast Limited 5.9x (-23.8%) 7.8x 5.2x (-33.5%) CyberArk Software Ltd. 7.1x (-24.6%) 9.5x 5.6x (-41.2%) Palo Alto Networks, Inc. 5.6x (-24.1%) 7.4x 4.2x (-43.5%) Zix Corporation 3.3x (-18.9%) 4.0x 2.6x (-34.3%) F-Secure Oyj 1.9x (-19.6%) 2.3x 1.6x (-30.8%) Aisino Corp. Class A 1.4x (-19.0%) 1.7x 1.4x (-16.7%) Trend Micro Incorporated 3.2x (-13.8%) 3.8x 2.6x (-32.1%) Rapid7 Inc. 6.9x (-16.3%) 8.3x 5.7x (-30.8%) Tenable Holdings, Inc. 6.0x (-16.9%) 7.2x 4.6x (-36.3%) Fortinet, Inc. 7.2x (-17.3%) 8.7x 6.0x (-30.9%) Check Point Software Technologies Ltd. 7.1x (-12.5%) 8.1x 5.9x (-27.7%) SolarWinds Corp. 7.2x (-11.6%) 8.2x 6.2x (-24.8%) NortonLifeLock Inc. 1.3x (-6.9%) 1.4x 0.7x (-51.1%) F5 Networks, Inc. 3.0x (-4.5%) 3.1x 2.3x (-26.7%) Avast Plc 7.7x (-6.0%) 8.2x 5.2x (-36.6%) Radware Ltd. 3.7x (-3.6%) 3.8x 3.0x (-20.2%) Proofpoint, Inc. 7.4x (-4.7%) 7.7x 6.2x (-19.7%) Sophos Group Plc 5.2x (-2.7%) 5.3x 4.8x (-9.5%) ForeScout Technologies, Inc. 4.2x (-2.8%) 4.4x 3.7x (-14.3%) Akamai Technologies, Inc. 6.2x (-0.2%) 6.2x 5.3x (-15.6%) Zscaler, Inc. 22.6x 1.7% 22.3x 19.7x (-11.4%) CrowdStrike Holdings, Inc. Class A 19.4x 5.2% 18.4x 13.9x (-24.4%) Okta, Inc. Class A 29.9x 9.2% 27.4x 23.2x (-15.4%) Qualys, Inc. 12.9x 14.4% 11.2x 9.3x (-17.6%)

Median 5.9x (-20.3%) 7.4x 4.8x (-35.0%) Mean 7.0x (-8.7%) 7.7x 5.7x (-26.4%)

Source: FactSet; based on consensus estimates.

Contact: Matthew Putzulu, Vice President [email protected] Page 20 COVID-19 Valuation Impact A Proprietary Analysis of How COVID-19 Has Shifted Public and Private Markets martinwolf Global M&A Advisors

martinwolf is a leading middle market IT M&A Advisory. Headquartered in Scottsdale, Arizona with an office in New York, martinwolf is focused on companies in the IT Services, IT Supply Chain and Software space. Since 1997, our team has completed more than 175 transactions in over 20 countries and has sold seven divisions of Fortune 500 companies. To learn more contact [email protected] or visit http://www.martinwolf.com.