Newsletter Corporate Finance | Q4 2018

Technology Deal Activity Q4 2018

This newsletter highlights M&A and equity fundraising transactions announced in Q4 2018 in the Technology sector in

Technology deals Featured deals This transaction, which would value Synthesio Sword Apak at €120m (representing a 30 October 2018 multiple of c. 3.9x its FY18e sales and Xebia France c. 15x its FY18e EBITDA), should Synthesio, a French social media 22 October 2018 enable to consolidate its intelligence specialist providing position in the asset finance software artificial intelligence to detect Xebia France, a French agile IT market. consumer insights from online (revenues of €24m in conversations (revenues of c. €18m in 2018), is to be acquired by Publicis Keyyo 2019e), has been acquired by , Groupe, the French listed media the French listed provider of survey group specialized in communication, 25 October 2018 research (revenues of €1.8bn in marketing and digital transformation Bouygues Telecom, the French 2017). This acquisition, which values services (revenues of €10bn in 2018). telecom operator (LTM revenues of the company at c. €44m (representing This acquisition should enable Publicis c. €6.6bn as of September 2018) has a multiple of c. 2.5x its FY19e sales), to reinforce its digital transformation acquired a 43.6% stake in Keyyo, a should enable Ipsos to strengthen its platform Publicis Sapient and its French listed IP telecom operator social media intelligence capabilities capabilities in France. dedicated to small companies in order to transform social data into strategic business intelligence. Sopra Banking Software (revenues of €24.4m and EBITDA of €3.7m in 2017). Bouygues Telecom 23 October 2018 will launch a tender offer to acquire Trustteam the remaining shares at the same 5 November 2018 Sopra Banking Software, the software financial conditions, which values the subsidiary of the French listed IT company at c. €64m (representing a Ardian, the French private equity firm, service provider Sopra Steria multiple of 13.3x its FY18e EBITDA). has acquired a majority stake in (revenues of €4.1bn in 2018) has This acquisition should enable Trustteam, a Belgian integrated ICT acquired Sword Apak, a UK-based Bouygues Telecom to expand into the provider for SMEs (revenues of company developing specialized SME market. c. €25m in 2018). This acquisition lending solutions for car loans and should support Trustteam in its asset finance (revenues of €28m and ongoing buy-and-build strategy, EBITDA of €7m in 2017). especially in cross-border countries such as France.

Newsletter technology Deal Activity Q4 2018 - 1 Newsletter Corporate Finance | Q4 2018

Metis Consulting Inside Secure 14 November 2018 5 December 2018 Harvest 17 December 2018 Metis Consulting, a French Inside Secure, a French listed firm company specialized in security Harvest, a French listed software specialized in supply chain strategy solutions for mobile and connected vendor for financial and wealth and operations (revenues of €8.7m in devices (revenues of €37m in FY18) is management advisors (LTM revenues 2017), has been acquired by to acquire Verimatrix, a US-based of €27.4m and EBITDA of €5.1m as of Wavestone, the French listed provider of cloud-based security June 2018), has entered into business transformation consulting software for video services (LTM exclusive negotiations to be acquired firm (revenues of €360m in 2018). revenues of $78.7m and EBITDA of by Five Arrows Principal Investments, This acquisition, which would value $14.5m as of September 2018). This the private equity fund operated by the company at up to €10.5m incl. transaction, which values Verimatrix Rothschild & Co. This transaction, earn-out (representing a multiple of at c. $143m (representing a multiple which would value Harvest at 1.2x its FY17 sales), should enable of 1.8x its LTM sales and 9.9x its LTM c. €110m (representing a multiple of Wavestone to strengthen its EBITDA as of September 2018), 4.0x its LTM sales and 21.6x its LTM presence in the supply chain should enable Inside Secure to EBITDA as of June 2018), should consulting field. strengthen its position in the enable Harvest to continue its entertainment, IoT and connected strategic growth path. Technology & Strategy cars security markets, notably through 22 November 2018 the deployment of Verimatrix’s data Soft Computing analytics capabilities across Inside 20 December 2018 Technology & Strategy, a French IT Secure’s end markets. consulting firm specialized in Soft Computing, a French listed engineering, IT, digital and project Dassault Systèmes consulting firm specialized in data management (revenues of €94m in 11 December 2018 science and digital technologies 2017) has been acquired by Ardian, applied to marketing and customer the French private equity firm, and its Dassault Systèmes, the French listed experience (revenues of €41m and management. This acquisition should 3D design and product lifestyle EBITDA of €3.5m in 2017), is to be enable Technology & Strategy to management solution provider acquired by Publicis, the French listed consolidate its presence in historical (revenues of €3.5bn in 2018) has media group specialized in markets and to target new acquired IQMS, a US-based communication, marketing and digital geographies supported by external manufacturing ERP software vendor services transformation (revenues of growth. (revenues of $56m in 2017). This €10.0bn in 2018). The envisaged transaction, which value IQMS at transaction, which values Soft Orchestral Networks $425m (representing a multiple of Computing at c. €47m (representing a 4 December 2018 c. 6.5x its 2018e sales), should enable multiple of c. 1.2x its sales and Dassault Systèmes to extend its c. 13.4x its 2017 EBITDA), should Orchestral Networks, a French integrated offering to manufacturing reinforce Publicis Group’s data Enterprise Data Management SMEs. marketing expertise. software vendor, has been acquired by TIBCO Software, a US-based Scalian ABMI infrastructure and business 12 December 2018 20 December 2018 intelligence software vendor. This acquisition should enable TIBCO to Scalian, a French engineering ABMI, a French engineering and complement its offering with a consulting company (revenues of industrial innovation consulting master data management solution for €190m in 2018), has been acquired by company (revenues of €45m in operational and analytics processes. Cobepa, a Belgian investment firm. 2018e), has been acquired by its This transaction, which values the management alongside the private company at c. €200m (representing a equity firms Omnes Capital, MACSF multiple of 9.5x its LTM EBITDA as of and Momentum Invest. This June 2018), should allow Scalian to transaction should enable ABMI to further expand internationally. conduct a build-up strategy in France and abroad.

Newsletter technology Deal Activity Q4 2018 - 2 Newsletter Corporate Finance | Q4 2018

Hivency Sentryo Fundraising 16 October 2018 3 December 2018

Hivency, a French marketing platform Sentryo, a French software vendor of connecting social media micro- cybersecurity and monitoring influencers with brands, raised €2.5m solutions for industrial systems, Featured deals from Groupe Duval and business raised €10m from Sopra Steria, BNP angels including Thierry Petit Paribas Développement, Omnes Kactus (Showroomprivé) and Hugues Le Bret Capital, Alliance Entreprendre and 1 October 2018 (Compte Nickel). This new round of historical shareholders Breed Reply, financing should enable Hivency to ACE Management and Kreaxi. This Kactus, a French start-up providing a create new features on its platform, second round of financing should booking platform for corporate to double its staff, as well as to enable Sentryo to accelerate its events, raised €5m from Bpifrance expand in Europe with a focus on international expansion in Europe and and Idinvest Partners. This new round Spain, Germany and Italy. North America, as well as to improve of financing should enable Kactus to its technology. reinforce its position in France and to Concord improve its product offering by 30 October 2018 Zelros doubling its staff to over 50 people 3 December 2018 before starting its European Concord, a French-American contract expansion in 2020. management platform, raised $25m Zelros, a French platform providing from Tenaya Capital and historical support in sales and claim processing Braincube shareholders Alven and Charles River for insurers based on artificial 8 October 2018 Ventures. This second round of intelligence, raised €4m from financing should allow the company investors including Hi Inov, 42CAP Braincube, a French company to reinforce its engineering, HR, sales and astorya.vc. This first round of developing a cloud platform using and marketing teams, as well as to financing should enable Zelros to artificial intelligence and big data to continue its platform development reinforce its R&D and operations improve quality and productivity in and to further expand internationally. teams and to structure its sales team industrial production processes in order to expand in Europe. KPMG (revenues of €7.6m in 2017), raised Data Impact Corporate Finance advised Zelros on €12m from Iris Capital and Next47, 20 November 2018 this transaction. the corporate venturing entity of the Siemens group. This first round of Data Impact, a French start-up Finalcad financing should enable Braincube to enabling FMCG companies to 13 December 2018 further expand internationally with the optimize their multichannel opening of offices in Germany, the distribution through tracking and Finalcad, a French provider of a Benelux and the US, as well as to management solutions based on big mobile software platform for double its R&D team to enhance its data analytics, raised €8m from Red construction and civil engineering solution. River West and Bpifrance. This first companies, raised $40m from Draper round of financing should enable Data Esprit, Cathay Innovation, Salesforce CybelAngel Impact to increase its R&D Ventures and historical shareholders. 11 October 2018 investments and to accelerate its This new round of financing should international development, in enable Finalcad to complete its CybelAngel, a French vendor of an AI- particular in the US. platform in order to address new based digital risk management clients in the energy and concession platform enabling enterprises to markets, as well as to further develop monitor data leaks, raised €10m from its SaaS model with Salesforce. Serena Capital and Bpifrance. This new round of financing should enable the company to accelerate its development in the US by increasing its local team to over 40.

Newsletter technology Deal Activity Q4 2018 - 3 Newsletter Corporate Finance | Q4 2018

Expensya 14 December 2018

Expensya, a French company providing employee expense management solutions, raised €4m from ISAI, Seventure Partners and historical shareholders. This first round of financing should allow Expensya to reinforce its R&D capacity in order to develop new features on its solution, as well as to accelerate its international expansion.

Dataiku 19 December 2018

Dataiku, the French-American software provider developing a platform for predictive analysis, raised $101m from Iconiq Capital, Alven Capital, Battery Ventures, Dawn Capital and FirstMark Capital. This third round of financing should enable Dataiku to double its staff, to accelerate the development of new features on its platforms, as well as to further expand its network of technological partnerships.

Newsletter technology Deal Activity Q4 2018 - 4 Newsletter Corporate Finance | Q4 2018

Market Multiples

Market EV EV / Net Sales EV / EBITDA EV / EBIT EBITDA % EBIT % Company Country cap. (€m) (€m) 2017 2018e 2019e 2017 2018e 2019e 2017 2018e 2019e 2017 2018e 2017 2018e

Software vendors Dassault Systèmes France 26,446 24,605 7.6x 7.1x 6.4x 27.7x 20.9x 18.6x 32.4x 22.6x 19.9x 27% 34% 24% 32% Pharmagest Interactive France 764 744 5.1x 5.0x 4.6x 20.4x 16.7x 15.1x 21.5x 18.9x 16.9x 25% 30% 24% 26% Esker France 315 308 4.0x 3.6x 3.1x 18.4x 15.7x 13.8x 28.2x 24.2x 20.6x 22% 23% 14% 15% Cegedim France 275 448 1.0x 1.0x 0.9x 9.1x 6.0x 5.5x 12.7x 13.6x 12.4x 11% 16% 8% 7% France 262 275 0.9x 1.0x 0.9x 6.3x 8.1x 8.5x 9.0x 8.8x 9.7x 15% 12% 10% 11% Linedata Services France 217 290 1.6x 1.7x 1.7x 8.3x 6.8x 6.7x 9.6x 10.6x 10.1x 19% 24% 17% 16% Sidetrade France 66 62 2.8x 2.5x 2.2x 22.3x 21.1x 14.6x 30.6x 29.2x 18.9x 13% 12% 9% 9% Average 3.3x 3.1x 2.8x 16.1x 13.6x 11.8x 20.6x 18.3x 15.5x 19% 22% 15% 16% Median 2.8x 2.5x 2.2x 18.4x 15.7x 13.8x 21.5x 18.9x 16.9x 19% 23% 14% 15%

IT services France 14,091 17,500 1.4x 1.3x 1.3x 10.8x 9.5x 8.8x 13.3x 11.1x 10.3x 13% 14% 11% 12% France 7,633 9,319 0.7x 0.8x 0.7x 5.8x 5.6x 4.6x 9.0x 7.2x 5.9x 13% 14% 8% 10% Sopra Steria Group France 1,629 2,465 0.6x 0.6x 0.6x 7.3x 7.2x 6.4x 9.2x 8.1x 7.4x 9% 8% 7% 7% Devoteam France 661 643 1.2x 1.0x 0.8x 11.7x 8.5x 6.8x 12.5x 8.9x 7.4x 10% 12% 10% 11% Neurones France 459 340 0.7x 0.7x 0.7x 6.4x 6.3x 5.9x 7.7x 7.5x 7.1x 11% 11% 9% 9% Aubay France 370 386 1.1x 1.0x 0.9x 10.5x 9.2x 8.5x 10.9x 9.5x 8.7x 10% 10% 10% 10% Groupe Open France 165 167 0.5x 0.5x 0.5x 7.1x 6.3x 5.7x 7.8x 6.7x 6.1x 8% 8% 7% 8% SQLi France 72 100 0.5x 0.4x 0.4x 7.7x 4.6x 4.3x 9.2x 6.9x 5.7x 6% 9% 5% 6% Average 0.8x 0.8x 0.7x 8.4x 7.2x 6.4x 9.9x 8.3x 7.3x 10% 11% 8% 9% Median 0.7x 0.7x 0.7x 7.5x 6.7x 6.2x 9.2x 7.8x 7.3x 10% 11% 9% 10%

Technology consulting services & Engineering Alten France 2,425 2,480 1.3x 1.1x 1.0x 12.7x 10.6x 9.6x 13.6x 11.3x 10.3x 10% 10% 9% 10% Altran Technologies France 1,778 3,563 1.6x 1.2x 1.1x 13.7x 9.0x 7.7x 14.8x 10.7x 8.9x 11% 14% 11% 12% Akka Technologies France 869 1,128 0.8x 0.8x 0.6x 10.1x 8.4x 6.6x 12.1x 9.9x 8.0x 8% 9% 7% 8% Assystem France 407 491 1.2x 1.1x 1.1x 18.0x 16.2x 13.8x 19.6x 18.8x 15.7x 7% 7% 6% 6% SII France 396 399 0.9x 0.6x 0.6x 10.7x 7.2x 6.1x 12.2x 8.7x 7.5x 9% 9% 8% 7% Average 1.2x 1.0x 0.9x 13.0x 10.3x 8.7x 14.4x 11.9x 10.1x 9% 10% 8% 8% Median 1.2x 1.1x 1.0x 12.7x 9.0x 7.7x 13.6x 10.7x 8.9x 9% 9% 8% 8%

22.0x

20.0x

18.0x

16.0x

14.0x

12.0x

10.0x Median EV / EBIT NTM EBIT /EV Median 8.0x

6.0x

4.0x

Software vendors IT services Technology consulting services & Engineering

Source: Capital IQ, KPMG Corporate Finance and company filings

Notes: Market Capitalization amounts are in millions, based on closing Share Prices as of December 31st 2018 - Enterprise Value (EV) equals Market Capitalization plus Debt, Preferred Equity, and Minority Interest, minus Cash and Cash Equivalents - EBITDA equals Earnings before Interest, Taxes, Depreciation, and Amortization (which can include R&D Capex based on accounting methods)

Newsletter technology Deal Activity Q4 2018 - 5 Newsletter Corporate Finance | Q4 2018

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Newsletter technology Deal Activity Q4 2018 - 6