1H13 M&A and Investments Review DEAL Technology, Software, and Information NotES & Business Services Industries 1H13 Review of M&A and Investment Activity in the Technology, Overview 1 Software, and Information & Business Services Industries: Segment Analysis 1,283 Transactions Totaling a Reported Marketing Technology 5 Technology & Communications 6 $50.3 Billion Software 7 Information & Business Services 8 Marketing Technology was the Most Active Segment in 1H13 with 421 Transactions Recent Transactions 9 Information & Business Services was the Highest Value Segment About Petsky Prunier 10 with $18.6 Billion in Reported Deal Value During the first half of 2013, Petsky Prunier tracked 1,283 M&A and investment transactions for a total of $50.3 billion across four broad segments: Marketing Technology, Technology & Communications, Software, and Information & Business Services. Marketing Technology was the most active segment in 1H13, accounting for one-third of total volume during the first six months of the year, with 421 transactions announced. Of those, 276 were worth $8.9 billion in aggregate reported value. Information & Business Services was the highest reported value segment in 1H13 with $18.6 billion, including Fidelity National Services’ $3.9 billion acquisition of Lender Processing Services, a provider of integrated technology, data, and services to the mortgage lending industry. Software was also a high-value segment due in large part to the announced $6.9 billion take-private of enterprise software company BMC Software from a consortium of private investors led by Bain Capital and Golden Gate Capital. [continued on page 2] Technology, Software, and Information & Business Services Industries Technology, Software, and Information & Business Services Industries MARKETING, MEDIA, TECHNOLOGY AND SERVICE INDUSTRIES! Technology,MARKETING, Software, MEDIA, and TECHNOLOGY Information &AND BusinessServices SERVICE INDUSTRIES Industries! MARKETING, MEDIA, TECHNOLOGY AND SERVICE INDUSTRIES M&A1H12 AND M&A INVESTMENT AND INVESTMENT ACTIVITY: ACTIVITY1Q11 - 2Q12! ! Technology, Software, and Information & Business Services Industries 2Q12–2Q132Q12-2Q13 M&A M&A and($ and in Millions) InvestmentInvestment! Activity Activity 1H13 M&A and Investment Activity ($($ inin Billions)Billions)! 2Q12 M&A AND INVESTMENT ACTIVITY 1H13 M&A and($ inInvestment Millions) Activity ($ in Billions) ($ in Millions) ($ in Millions) Information & Business Services DOLLAR VALUE $18,617 $36.2 Software $29.4 $13,285 $23.7 $19.0 $14.0 Marketing DEAL VOLUME Technology 592 599 596 607 676 $8,862 Technology & 2Q12 3Q12 4Q12 1Q13 2Q13 Communications $9,495 Securities offered through Petsky Prunier Securities, LLC 1 Deal Notes First Half 2013 M&A Activity Acquisitions accounted for 47 percent of total transactions and 84 with 21 control deals announced, up from 10 in 2H12, followed by percent of reported value in 1H13. Information & Business Services Content Management with 16. There were 26 acquisitions announced by was the highest value M&A segment with 181 acquisitions announced, cloud-based marketing technology companies, including: of which 36 were reported for $17.5 billion in value. IT Consulting/ Systems Integration was the most active Information & Business Services Salesforce.com’s $2.5 billion acquisition of marketing execution subsegment, with 48 acquisitions announced, of which nine were worth company ExactTarget, which provides cross-channel, digital $2.4 billion in aggregate reported value. The three largest acquisitions marketing SaaS solutions, valuing the company at 7.4x revenue announced in the Information & Business Services segment were: SAP’s acquisition of Germany-based Hybris, a vendor of cloud-based, multi-channel communication and commerce software solutions, BC Partners’ $4.4 billion buyout of Germany-based Springer reportedly valued at $1.5 billion Science+Business Media, which publishes academic and professional Adobe’s $600 million acquisition of NeoLane, which offers solutions books, journals, and periodicals that help companies manage their marketing across channels IHS’ $1.4 billion agreement to acquire R. L. Polk, a provider of automotive intelligence and marketing solutions There were 91 acquisitions announced in the Technology & Thomas H. Lee Partners’ $1.1 billion buyout of IT outsourcing Communications segments, of which 31 were reported at $7.5 billion specialist CompuCom Systems, from Court Square Capital Partners in value. Reflecting an influx of advanced mobile and in-store payment technologies, Financial Technology was the most active subsegment, Software was the second-highest value M&A segment during the first accounting for 20 percent of acquisitions in the segment (triple the half of the year with 180 acquisitions announced, of which 36 were level of activity in 2H12). Of the 18 Financial Technology acquisitions reported at $10.7 billion in aggregate value. The Infrastructure Software announced, seven were reported at $1.2 billion in aggregate value. subsegment accounted for 67 percent of the segment’s acquisition value, M&A activity in the Cloud Computing subsegment was also strong, largely due to the $6.9 billion take-private of BMC Software. The next- with a 25 percent increase in volume and a 62 percent increase in largest Infrastructure Software acquisition was SolarWind’s $120 million reported value from 2H12. Ten acquisitions were announced in the purchase of Canada-based N-able Technologies, a provider of network Networking Equipment subsegment, of which five were worth $771 monitoring and remote systems management solutions. Security Software million in aggregate reported value. Notable acquisitions in the was the second-highest value subsegment, accounting for 15 percent Technology & Communications segment included: of total acquisition value in the segment. Other notable acquisitions announced in the Security Software subsegment included: IBM’s $2 billion acquisition of SoftLayer Technologies, which operates a unified cloud infrastructure platform Vista Equity Partners’ announced take-private of Websense, a Avista Capital Partners’ $253 million acquisition of Telular, which provider of network security solutions, valued at more than $900 develops cellular electronics products that utilize wireless networks to million provide data and voice connectivity among people and machines McAfee’s $378 million acquisition of Stonesoft, a Finland-based Fidelity National Information Services’ $120 million purchase of provider of network firewall products, at 7x revenue mFoundry, a provider of mobile banking and payment solutions for financial institutions and retailers A total of 147 acquisitions were announced in the Marketing Technology segment, of which 30 were reported at $6.7 billion in aggregate value. Analytics/Reporting was the most active subsegment 1H13 Most Active Strategic Buyers by Number of Transactions Number of Buyer Transactions Representative Targets Cisco 6 Cognitive Security, Intucell, JouleX, SolveDirect Service Management, Ubiquisys IHS 6 Energy Publishing, Fekete Associates, Intellichem, PFC Energy, R.L. Polk Salesforce.com 4 EdgeSpring, EntropySoft, ExactTarget, Pasona Tquila Reed Elsevier 4 Aureus Sciences, Knovel, Knowledge Mosaic, Mendeley SAP 4 Camilion, Hybris, SmartOps, Ticket-Web Twitter 4 Bluefin labs, Crashlytics, Lucky Sort, Ubalo IMS Health 4 360 Vantage, Appature, Semantelli Google 3 Behavio, Channel Intelligence, Wavii Oracle 3 Acme Packet, Nimbula, Tekelec Facebook 3 Atlas Advertiser Suite, Parse, Spaceport.io 2 Deal Notes First Half 2013 Investment Activity There were 684 investments announced during 1H13, of which 606 were The $150 million investment in Precision for Medicine, a provider of worth $7.8 billion in aggregate reported value. Marketing Technology services and infrastructure to support life science companies, raised was the most active investment segment, accounting for 40 percent of from Oak Investment Partners and J.H. Whitney volume and 27 percent of reported value. A total of 274 investments General Electric’s $105 million investment in Pivotal One, a spin-out were announced in the Marketing Technology segment, of which 246 from EMC and VMware that has developed an enterprise Platform- reported $2.1 billion in value. Activity in the segment was led by the as-a-Service for the creation and management of consumer-grade Analytics & Reporting and Social Technology subsegments, which applications, reportedly valuing the company at more than $1 billion together accounted for nearly 30 percent of both investment volume and reported value during the first half of the year. Of the 79 investments The Technology & Communications segment accounted for 22 percent announced in these subsegments, 22 were among companies extending of investments during 1H13, with 153 investments announced, of the value of traditional analytics by integrating big data analytics which 143 were worth $2 billion in aggregate reported value. Leading solutions. Investments included: subsegments were Financial Technology, Big Data Technology, and Cloud Computing Technology, in which there were a total of 71 Goldman Sachs’ $100 million investment in Applied Predictive investments announced. Activity across these subsegments increased Technologies, a provider of cloud-based big data predictive analytics 92 percent from 2H12. Enterprise Mobility was the highest value software subsegment, in addition to being the most active Communications A $38 million investment in MarketShare Partners, a cross-media