February 2014 M&A and Investment Summary
Expertise. Commitment. Results. Table of Contents
1 Overview of Monthly M&A and Investment Activity 3
2 Monthly M&A and Investment Activity by Industry Segment 9
3 Additional Monthly M&A and Investment Activity Data 40
4 About Petsky Prunier 55
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2| M&A and Investment Summary February 2014 M&A and Investment Summary for All Segments
Transaction Distribution . A total of 444 deals were announced in February 2014, of which 249 were worth $81.5 billion in aggregate reported value . Marketing Technology was the most active segment with 97 deals announced, respectively . Traditional Media was the highest reported value segment with 16 deals announced, of which eight were reported at $45.4 billion in aggregate value . Strategic buyers announced 209 deals (47 percent of total volume), of which 48 were worth $74.4 billion in aggregate value . VC/Growth Capital investors announced 226 deals, of which 198 were reported for $5.9 billion . Buyout investors announced nine deals during the month, of which three were reported at $1.2 billion in aggregate value
February 2014 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Marketing Technology 97 22% $949.1 1% 34 $214.4 0 ‐ 63 $734.7 Digital Media/Commerce 89 20% 23,087.6 28% 33 22,638.7 1 ‐ 55 448.9 Software 89 20% 6,936.0 9% 34 5,398.4 4 260.0 51 1,277.6 Technology & Communications 48 11% 865.5 1% 25 312.9 0 ‐ 23 552.6 Digital Advertising 39 9% 697.7 1% 17 376.5 0 ‐ 22 321.2 Information & Business Services 37 8% 3,548.3 4% 25 56.7 2 915.0 10 2,576.6 Agency & Marketing Services 29 7% 12.5 0% 25 5.0 2 ‐ 27.5 Traditional Media 16 4% 45,365.6 56% 16 45,365.6 0 ‐ 0 ‐ Total 444 100% 81,462.2 100% 209 74,368.2 9 1,175.0 226 5,919.1
3| M&A and Investment Summary February 2014 M&A and Investment Summary for All Segments
Transaction Distribution . Compared to the previous month aggregate reported value in February increased 344 percent from January 2014, and 47 percent in deal volume from January 2013 . Strategic activity accounted for 47 percent of reported deal value during the month, and included: • Comcast’s purchase of Time Warner Cable for approximately $45.2 billion, at a valuation of 3.1x revenue, and 9.0x EBITDA • Facebook’s $19 billion acquisition of WhatsApp, which provides a free cross‐platform mobile messaging application • Rakuten’s $900 million purchase of Cyprus‐based Viber, a messaging platform and application developer • Oracle’s acquisition of DMP BlueKai for a reported $400 million
$90.0 $500.0 $81.5 $80.0 $70.0 Time $400.0 Warner $60.0 Cable/Co mcast $300.0 $50.0 $40.0 $38.0 $200.0 $30.0 (2) Omnicom/ WhatsApp /Facebook $20.2 $21.6 Publicis $18.4 $20.0 $18.0 $14.7 $11.7 $100.0 (1) $8.7 $10.0 $6.1 $7.5 $7.7 $8.4 299 336 359 364 392 369 384 375 309 293 301 384 444 $‐ $- Feb‐13 Mar‐13 Apr‐13 May‐13 Jun‐13 Jul‐13 Aug‐13 Sep‐13 Oct‐13 Nov‐13 Dec‐13 Jan‐14 Feb‐14
(1) Aggregate totals for February 2013 do not include Liberty Global’s $24.3 billion acquisition of Virgin Media or Comcast’s $16.7 billion acquisition of its remaining 49 percent stake in NBC Universal (2) Aggregate totals for June 2013 do not include Vodafone’s $14 billion acquisition of Kabel Deutschland
4| M&A and Investment Summary February 2014 Selected Transactions with Valuation Information Disclosed ($ in Millions)
Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Media/Commerce Zale Corporation eCommerce Signet Jewelers Ltd$ 1,234.0 $ 1,893.0 $ 70.0 0.7x 17.6x Viber Media, Inc. Mobile Content/Apps Rakuten, Inc. 900.0 1.5 (26.5) NM NM Eddie Bauer Holdings, Inc. eCommerce Joseph A. Bank Clothiers, Inc. 825.0 825.0 86.8 1.0x 9.5x Coastal Contacts, Inc. eCommerce Essilor International SA 385.7 195.2 (11.0) 2.0x NM
Information & Business Services Medpace, Inc. Healthcare Consulting CCMP Capital Advisors, LLC 915.0 ‐ 95.0 NA 9.6x People & Print Group B.V. Printing Services VistaPrint USA, Inc. 32.9 46.8 4.1 0.7x 8.0x Staff Management Group Staffing Diamond Staffing Services, Inc. 10.0 85.0 ‐ 0.1x NA
Marketing Technology Blue Kai, Inc. Online Targeting/Optimization Oracle Corporation 400.0 64.0 ‐ 6.3x NA
Software Kronos Incorporated HR Software The Blackstone Group 4,500.2 243.4 78.7 18.5x 57.2x Coverity, Inc. Software Development Tools Synopsys, Inc 350.0 74.5 ‐ 4.7x NA Transics International Geo‐Demo Software WABCO Europe BVBA 156.4 50.3 8.7 3.1x 18.0x
Technology & Communications ForwardThink Group, Inc. Financial Technology Perficient, Inc. 46.0 30.6 ‐ 1.5x NA
Traditional Media Time Warner Cable Inc. Cable & Satellite Television Comcast Corporation 69,392.2 22,120.0 7,729.0 3.1x 9.0x
5| M&A and Investment Summary February 2014 Securities in Registration ($ in Millions)
Aggregate LTM Date Company Name Country Segment Offering Value Rev EBITDA
Feb‐14 Everyday Health, Inc. United States Digital Media/Commerce 115.0 155.9 10.6
Feb‐14 Grub Hub, Inc. United States Digital Media/Commerce NA NA NA
Feb‐14 Aerohive Networks, Inc. United States Software 75.0 107.1 (28.3)
Feb‐14 Borderfree, Inc. United States Software 86.3 110.5 1.4
Feb‐14 King Digital Entertainment plc United States Software 500.0 1,844.3 720.3
Feb‐14 Castlight Health United States Software 100.0 13.0 NA
Feb‐14 Amber Road, Inc. United States Software 75.0 52.5 (11.7)
Jan‐14 Coupons.com United States Digital Media/Commerce NA NA NA
Jan‐14 JD.com China Digital Media/Commerce 1,500.0 NA NA
Jan‐14 Paylocity Corpora ti on Uni ted States Software NA 46.0 NA
Dec‐13 IMS Health United States Software 100.0 NA NA
Oct‐13 Varonis Systems, Inc. United States Software 100.0 NA NA
Sep‐13 Midasplayer.com Ltd. (King.com) United Kingdom Digital Media/Commerce NA NA NA
Jun‐12 goldenTech SA Switzerland Software 5.2 NA NA
Jun‐12 Shanghai Amarsoft Information Technology China Software NA NA NA
Apr‐12 BlackStratus, Inc. United States Software 20.0 9.2 (0.6)
Apr‐12 NSFOCUS Information Technology Co., Ltd. China Technology & Communications NA NA NA
Apr‐12 Shenzhen Tinno Mobile Technology Corp. China Technology & Communications 451.0 NA NA
Mar‐12 Reval Holdings, Inc. United States Software 75.0 47.0 (12.1)
6| M&A and Investment Summary February 2014 LTM IPO Performance
Initial Offering Final Price Stock Price at Close Stock Price on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Feb 28, 2014 1st Trading Day
Jan‐14 NYSE:CRCM Care.com, Inc. United States $14.00‐$16.00 $17.00 $24.30, up 43% $18.51 (23.8%)
Dec‐13 NYSE:ATHM Autohome Inc. China 14.00‐16.00 17.00 26.95, up 58% 41.20 52.9%
Dec‐13 NYSE:NMBL Nimble Storage, Inc. United States 18.00‐20.00 21.00 33.81, up 61% 48.01 42.0%
Nov‐13 NYSE:CUDA Barrracuda Networks, Inc. United States 18.00‐21.00 18.00 21.55, up 20% 35.95 66.8%
Nov‐13 NYSE:CHGG Chegg, Inc. United States 9.50‐11.50 12.50 9.64, down 23% 6.30 (34.6%) Nov‐13 NYSE:MVNR Mavenir Systems, Inc. United States 15.00‐17.00 10.00 9.55, down 4.5% 15.45 61.8%
Nov‐13 NasdaqGM:GOMO Sungy Mobile Limited China 9.50‐11.50 11.22 13.35, up 19% 27.56 106.4%
Nov‐13 NYSE:TWTR Twitter United States 23.00‐25.00 26.00 44.90, up 73% 54.91 22.3%
Nov‐13 NasdaqGM:WIX Wix.com Ltd. United States 14.50‐16.50 16.50 16.31, down 1% 30.90 89.5%
Nov‐13 NasdaqGS:ZU zulily, Inc. United States 18.00‐20.00 22.00 37.70, up 71% 68.39 81.4%
Oct‐13 NasdaqGS:COMM CommScope Holding Compa ny Inc. United States 18.00‐21.00 15.00 4.99, flat 24.22 385.4%
Oct‐13 NasdaqGS:CRTO Criteo SA France 27.00‐29.00 31.00 35.39, up 15% 53.47 51.1% Oct‐13 NasdaqGS:EIGI Endurance International Group Holdings, Inc. China 14.00‐16.00 12.00 13.84, up 32% 15.09 9.0%
Oct‐13 SEHK:484 Forgame Holdings China 5.60‐7.09 6.58 8.70, up 32% 6.84 (21.4%)
Oct‐13 NasdaqGS:SFXE SFX Entertainment Inc. United States 11.00‐13.00 13.00 11.89, down 9% 8.59 (27.8%)
Oct‐13 NYSE:VEEV Veeva Systems Inc. United States 12.00‐14.00 20.00 37.16, up 86% 35.30 (5.0%)
Sep‐13 NasdaqGM:BNFT Benefitfocus, Inc. United States 21.50‐24.50 26.50 53.55, up 102% 64.78 21.0%
Sep‐13 NasdaqGS:COVS Covisint Corpora ti on Uni ted States 9.00‐11.00 10.00 12.31, up 23% 10.75 (12.7%)
Sep‐13 NasdaqGS:FEYE FireEye, Inc. United States 12.00‐14.00 20.00 39.40, up 97% 85.64 117.4% Sep‐13 NasdaqGS:MONT Montage Technology Group Limited China 12.00‐14.00 10.00 12.80, up 28% 15.73 22.9%
Sep‐13 NasdaqGS:PINC Premier, Inc. United States 23.00‐26.00 27.00 30.65, up 14% 33.45 9.1%
Sep‐13 NasdaqGS:FUEL Rocket Fuel, Inc. United States 27.00‐29.00 29.00 55.42, up 91% 56.06 1.2%
Sep‐13 NYSE:VMEM Violin Memory, Inc. United States 8.00‐10.00 9.00 7.20, down 20% 4.35 (39.6%)
Aug‐13 NYSE:CVT Cvent, Inc. United States 17.00‐19.00 21.00 32.92, up 57% 39.28 19.3%
Aug‐13 NYSE:YUME YuMe, Inc. United States 12.00‐14.00 9.00 9.00, flat 6.39 (29.0%)
Jul‐13 NasdaqGS:SALE RetailMeNot, Inc. United States 20.00‐22.00 21.00 27.70, up 32% 41.77 50.8%
Jun‐13 NYSE:GIMO Gigamon LLC United States 18.00‐20.00 19.00 28.47, up 50% 31.56 10.9% Jun‐13 NasdaqGS:GOGO Gogo Inc. United States 15.00‐17.00 17.00 16.00, down 6% 20.85 30.3% 7| M&A and Investment Summary February 2014 LTM IPO Performance
Initial Offering Final Price Stock Price at Close Stock Price on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Feb 28, 2014 1st Trading Day
Jun‐13 NSEI:JUSTDIAL Just Dial Limited India $8.39‐$9.69 $9.46 $10.77, up 14% 23.20 115.4%
Jun‐13 NYSE:LITB Light in the Box Chi na 8.50‐10.50 9.50 11.61, up 22% 8.47 (27.0%)
Jun‐13 NYSE:LXFT Luxoft Holding, Inc. Switzerland 16.00‐18.00 17.00 20.71, up 22% 37.43 83.7%
Jun‐13 NYSE:TXTR Textura Corpora ti on Uni ted States 13.00‐15.00 15.00 20.35, up 36% $26.91 32.2%
Jun‐13 NYSE:TRMR Tremor Video, Inc. United States 11.00‐13.00 10.00 8.50, down 15% 4.34 (48.9%) May‐13 NYSE:ECOM ChannelAdvisor Corpora ti on Uni ted States 12.00‐14.00 14.00 18.44, up 32% 45.38 146.1%
May‐13 NYSE:CYNI Cyan, Inc. United States 10.00‐12.00 11.00 11.14, up 1% 3.36 (69.8%)
May‐13 NasdaqGS:MKTO Marketo, Inc. United States 11.00‐13.00 13.00 23.10, up 78% 41.00 77.5%
May‐13 NYSE:Q Quintiles Transnational Holdings Inc. United States 36.00‐40.00 40.00 42.11, up 5% 54.15 28.6%
May‐13 NYSE:DATA Tableau Software, Inc. United States 28.00‐30.00 31.00 50.75, up 64% 94.34 85.9% Apr‐13 NYSE:RALY Rally Software Development Corp. Uni ted States 11.00‐13.00 14.00 17.81, up 27% 19.89 11.7% Mar‐13 NYSE:MRIN Marin Software United States 11.00‐13.00 14.00 16.26, up 16% 11.45 (29.6%)
Mar‐13 NYSE:MODN Model N, Inc. United States 12.50‐14.50 15.50 18.45, up 19% 10.99 (40.4%)
Mar‐13 TSE:3182 Oisix Inc. Japan 10.42‐12.51 12.51 28.73, up 30% 31.30 8.9%
Mar‐13 NasdaqCM:IPDN Professional Diversity Network LLC United States 10.00‐12.00 8.00 7.67, down 4% 3.19 (58.4%)
Feb‐13 AIM:DGS Digital Globe Services, Ltd. United States No Range 2.47 2.59, up 5% 3.73 43.9%
Feb‐13 TSE:3671 Softmax Co., Ltd Japan 11.44‐13.52 13.52 31.16, up 30% 25.66 (17.6%)
Feb‐13 NasdaqGS:XOOM Xoom Corpora ti on Uni ted States 13.00‐15.00 16.00 25.49, up 59% 28.03 10.0%
8| M&A and Investment Summary February 2014 Digital Media/Commerce
. Of the total $23.1 billion in value reported in the Digital Media/Commerce segment, $449 million in Venture/Growth investments were reported, while another $22.6 billion of strategic and buyout transactions were made . eCommerce and Mobile Content/Apps were the most active subsegments across all segments, with 35 and 25 transactions announced, respectively, worth a combined total of $22.7 billion . Select acquisitions: • Facebook’s $19 billion acquisition of WhatsApp, which provides a free cross‐platform mobile messaging application • Rakuten’s $900 million purchase of Cyprus‐based Viber, a messaging platform and application developer • Signet Jewlers’ $1.2 billion purchase of Zale Corporation, at a valuation of 0.7x revenue, and 17.6x EBITDA . Select investments: • The $58 million investment led by Goldman Sachs in SpiceWorks, a social community to IT professionals • Microsoft’s $15 million investment in Foursquare, a social, location‐based check‐in application that also serves as a local search platform
DIGITAL MEDIA/COMMERCE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM eCommerce 35 39% $2,768.9 12% 13 $2,578.7 1 ‐ 21 $190.2 Mobile Content/Apps 25 28% 19,939.9 86% 11 19,900.0 0 ‐ 14 39.9 Social Media/Apps 10 11% 106.1 0% 3 ‐ 0 ‐ 7 106.1 Classifieds/Auctions/P‐to‐P 6 7% 75.1 0% 0 ‐ 0 ‐ 6 75.1 Niche Content 5 6% 5.7 0% 2 ‐ 0 ‐ 35.7 Gaming 8 9% 191.9 1% 4 160.0 0 ‐ 4 31.9 Total 89 100% 23,087.6 100% 33 22,638.7 1 0.0 55 448.9
9| M&A and Investment Summary February 2014 Digital Media/Commerce Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 1‐800‐Flowers.com Inc. United States $5.28 ‐26% $ 339.0 $ 342.6 $ 753.9 $ 46.4 6.2% 4.5% 0.5x 7.4x 58.com Inc. * China 41.99 ‐8% 3,335.6 3,409.8 145.7 19.3 13.2% 67.3% 23.4x 176.9x Amazon.com Inc. United States 360.13 ‐12% 165,395.1 159,084.1 74,452.0 3,547.0 4.8% 21.9% 2.1x 44.9x AOL Inc. United States 44.52 ‐16% 3,537.2 3,451.9 2,319.9 436.3 18.8% 5.8% 1.5x 7.9x Baidu, Inc. China 178.92 ‐4% 62,676.3 59,616.0 5,198.1 2,067.8 39.8% 43.2% 11.5x 28.8x Blucora, Inc. United States 19.26 ‐36% 812.5 781.5 574.0 102.7 17.9% 41.1% 1.4x 7.6x Blue Nile Inc. United States 35.84 ‐27% 457.7 342.4 450.0 15.8 3.5% 12.5% 0.8x 21.6x CafePress Inc. United States 5.59 ‐25% 96.0 61.8 245.9 5.2 2.1% 12.9% 0.3x 11.8x Care.com, Inc. * United States 20.03 ‐32% 595.8 718.1 81.5 NA NA 68.0% 8.8x NA CDW Corporation United States 25.54 0% 4,391.8 7,711.5 10,768.6 710.5 6.6% 6.3% 0.7x 10.9x Copart, Inc. United States 36.36 ‐5% 4,576.3 4,885.3 1,107.7 334.1 30.2% 13.5% 4.4x 14.6x Cupid plc United Kingdom 1.03 ‐57% 73.6 52.7 142.3 22.8 16.0% 109.5% 0.4x 2.3x CyberAgent Inc. Japan 44.37 ‐17% 2,764.5 2,605.5 1,620.1 172.7 10.7% 10.4% 1.6x 15.1x Demand Media, Inc. United States 4.97 ‐49% 424.2 366.9 394.6 171.8 43.5% 3.7% 0.9x 2.1x DeNA Co., Ltd. Japan 20.88 ‐26% 2,704.5 2,174.3 1,898.4 679.3 35.8% 0.0% 1.1x 3.2x eBay Inc. United States 58.34 ‐2% 75,530.2 70,628.2 16,047.0 4,771.0 29.7% 14.0% 4.4x 14.8x E‐Commerce China Dangdang Inc. * China 13.11 ‐2% 1,054.5 855.2 1,029.2 (25.1) NM 21.8% 0.8x NM eLong Inc. * China 17.33 ‐27% 598.9 296.0 164.3 (26.0) NM 35.7% 1.8x NM Expedia Inc. United States 78.62 ‐4% 10,178.0 10,559.3 4,771.3 654.9 13.7% 18.4% 2.2x 16.1x Facebook, Inc. United States 68.94 ‐3% 175,779.3 164,806.3 7,872.0 3,932.0 49.9% 54.7% 20.9x 41.9x Forgame Holdings Limited China 6.97 ‐27% 883.7 950.6 163.3 51.7 31.6% 0.0% 5.8x 18.4x G5 Entertainment AB (publ) Sweden 4.12 ‐54% 36.2 30.9 14.3 4.3 29.7% 21.6% 2.2x 7.3x GameLoft SA France 10.89 ‐6% 896.9 813.2 307.2 46.6 15.2% 21.8% 2.6x 17.5x Geeknet, Inc. United States 14.77 ‐26% 98.3 45.2 138.3 1.1 0.8% 16.3% 0.3x 40.6x Glu Mobile, Inc. * United States 5.05 ‐3% 393.7 365.2 105.6 (12.9) NM ‐2.4% 3.5x NM Google Inc. United States 1,219.21 ‐1% 409,716.5 358,801.5 59,825.0 18,028.0 30.1% 19.2% 6.0x 19.9x Gree, Inc. Japan 10.95 ‐18% 2,545.9 2,160.5 1,399.3 441.5 31.6% ‐12.7% 1.5x 4.9x Hollywood Media Corp. * United States 1.33 ‐32% 30.1 5.3 0.5 (5.9) NM ‐22.1% 10.3x NM HSN, Inc. United States 57.35 ‐12% 3,046.5 3,090.7 3,404.0 307.6 9.0% 4.2% 0.9x 10.0x IAC/InterActiveCorp United States 76.67 ‐1% 6,303.6 6,362.6 3,023.0 545.0 18.0% 7.9% 2.1x 11.7x International Game Technology United States 15.06 ‐29% 3,715.3 5,328.0 2,352.5 778.3 33.1% 5.2% 2.3x 6.8x iProperty Group Limited * Malaysia 2.58 ‐4% 468.5 454.6 17.0 (2.4) NM 23.2% 26.7x NM j2 Global, Inc. United States 51.51 ‐8% 2,398.7 2,345.8 520.8 225.6 43.3% 40.2% 4.5x 10.4x Jiayuan.com International Ltd. China 8.23 ‐13% 247.1 152.2 80.2 11.0 13.7% 19.9% 1.9x 13.9x JobStreet Corp. Bhd. * Malaysia 0.77 ‐16% 486.4 482.3 2.6 2.0 77.8% ‐94.7% 184.7x 237.3x Kongzhong Corp. China 10.23 ‐31% 429.2 249.4 173.7 20.2 11.6% ‐3.8% 1.4x 12.4x LifeLock, Inc. United States 20.37 ‐11% 1,870.5 1,697.9 369.7 27.5 7.4% 33.7% 4.6x 61.8x Liberty Interactive Corporation United States 29.67 ‐1% 15,085.0 25,092.0 11,252.0 2,096.0 18.6% 11.9% 2.2x 12.0x LightInTheBox Holding Co., Ltd. * China 8.56 ‐63% 419.1 315.4 292.4 (3.6) NM 46.2% 1.1x NM LinkedIn Corporation * United States 213.77 ‐17% 25,765.9 23,441.6 1,528.5 166.7 10.9% 57.2% 15.3x 140.6x Liquidity Services, Inc. * United States 26.26 ‐36% 847.9 746.4 505.6 NA NA 2.9% 1.5x NA
10 | M&A and Investment Summary February 2014 Digital Media/Commerce Public Company Valuation
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Mediabistro Inc. * United States 2.31 ‐57% $ 13.9 $ 20.8 $ 12.8 $ (1.9) NM ‐8.8% 1.6x NM MeetMe, Inc. * United States 2.66 ‐9% 102.3 101.1 39.0 (4.4) NM ‐4.9% 2.6x NM Mercadolibre, Inc. Argentina $104.18 ‐29% 4,599.9 4,400.4 472.6 165.4 35.0% 26.5% 9.3x 26.6x Mixi, Inc. * Japan 61.52 ‐31% 954.2 850.1 88.8 1.8 2.0% ‐33.9% 9.6x NM NCsoft Corporation South Korea 183.86 ‐22% 3,667.0 3,103.3 776.6 248.6 32.0% 36.3% 4.0x 12.5x Netflix, Inc. * United States 452.23 ‐1% 27,046.6 26,376.8 4,374.6 276.7 6.3% 21.2% 6.0x 95.3x NEXON Co., Ltd. Japan 8.85 ‐34% 3,886.3 3,041.4 1,521.7 634.4 41.7% 43.2% 2.0x 4.8x OpenTable, Inc. United States 80.72 ‐8% 1,892.8 1,778.3 190.1 58.1 30.6% 17.6% 9.4x 30.6x Orbitz Worldwide, Inc. United States 9.52 ‐28% 1,030.1 1,356.0 847.0 116.1 13.7% 8.8% 1.6x 11.7x Overstock.com Inc. United States 20.56 ‐42% 492.6 343.9 1,304.2 30.6 2.3% 18.6% 0.3x 11.2x Pacific Online Ltd. China 0.78 ‐5% 845.7 801.0 123.4 50.5 40.9% 12.1% 6.5x 15.9x Pandora Media, Inc. * United States 38.49 ‐3% 7,598.8 7,254.4 588.3 (42.0) NM 53.5% 12.3x NM PC Home Online Inc. Taiwan 7.17 ‐12% 589.7 494.6 522.1 23.5 4.5% 8.6% 0.9x 21.0x Perform Group plc. United Kingdom 3.84 ‐63% 1,009.9 1,052.5 296.0 58.6 19.8% 40.8% 3.6x 18.0x PetMed Express, Inc. United States 13.60 ‐23% 271.0 229.5 235.9 29.3 12.4% 1.4% 1.0x 7.8x Phoenix New Media Limited China 11.10 ‐17% 855.1 624.2 231.8 43.8 18.9% 28.2% 2.7x 14.2x priceline.com Incorporated United States 1,357.79 ‐1% 70,797.9 65,947.7 6,793.3 2,553.1 37.6% 29.1% 9.7x 25.8x Rakuten, Inc. Japan 14.45 ‐20% 19,041.0 19,159.2 5,079.8 1,187.2 23.4% 0.0% 3.8x 16.1x RealNetworks Inc. * United States 7.57 ‐15% 270.5 44.3 206.2 (31.7) NM ‐20.3% 0.2x NM Rediff.com India Limited * India 2.12 ‐40% 58.5 38.5 16.4 (6.0) NM 1.8% 2.3x NM Renren Inc. * China 3.65 ‐21% 1,382.6 474.2 192.6 (104.3) NM 20.3% 2.5x NM Shutterfly, Inc. United States 53.69 ‐10% 2,053.0 1,798.9 783.6 86.1 11.0% 22.3% 2.3x 20.9x Shutterstock, Inc. United States 102.84 0% 3,606.7 3,396.9 235.5 47.0 19.9% 38.9% 14.4x 72.3x Sky‐mobi Limited China 6.28 ‐7% 185.8 85.0 84.3 7.2 8.6% ‐16.3% 1.0x 11.8x SNAP Interactive, Inc. * United States 0.30 ‐74% 11.7 10.2 13.6 (4.4) NM ‐34.7% 0.8x NM Spark Networks, Inc. * United States 5.96 ‐36% 143.0 125.8 68.5 (9.1) NM 17.4% 1.8x NM Stamps.com Inc. United States 36.15 ‐27% 582.0 494.8 127.8 36.5 28.6% 10.5% 3.9x 13.5x Taomee Holdings Ltd. China 6.35 ‐18% 233.5 117.5 44.9 5.0 11.0% 8.7% 2.6x 23.7x TheStreet, Inc. * United States 2.94 ‐3% 99.8 50.6 54.5 0.3 0.6% 7.4% 0.9x 146.0x Twitter, Inc. * United States 55.77 ‐25% 30,377.7 28,341.3 664.9 (541.5) NM 109.8% 42.6x NM U.S. Auto Parts Network, Inc. United States 1.99 ‐37% 66.2 83.2 257.9 1.7 0.7% ‐19.0% 0.3x 48.3x United Online, Inc. United States 11.43 ‐82% 157.1 88.8 233.6 20.3 8.7% ‐73.2% 0.4x 4.4x ValueVision Media Inc. United States 5.74 ‐19% 285.7 294.8 624.7 14.1 2.3% 12.2% 0.5x 21.0x Vipshop Holdings Limited * China 116.57 ‐5% 6,487.9 6,006.2 1,345.3 36.6 2.7% 170.3% 4.5x 164.1x Vitacost.com, Inc. * United States 7.46 ‐21% 251.0 226.2 382.7 (7.0) NM 15.7% 0.6x NM WebMD Health Corp. United States 45.35 ‐12% 1,773.2 1,900.5 515.3 84.3 16.4% 9.7% 3.7x 22.5x XO Group Inc. United States 12.46 ‐21% 336.4 250.2 133.4 24.0 18.0% 4.3% 1.9x 10.4x Yahoo! Inc. United States 38.47 ‐8% 39,025.6 36,900.6 4,680.4 1,206.3 25.8% ‐6.1% 7.9x 30.6x Yandex N.V. Netherlands 37.68 ‐17% 12,195.3 11,676.4 1,099.7 460.3 41.9% 37.3% 10.6x 25.4x YY Inc. China 75.00 ‐3% 4,140.4 3,835.6 240.5 59.0 24.5% 121.9% 15.9x 65.0x zulily, Inc. United States 72.75 ‐1% 8,880.3 8,572.1 695.7 19.3 2.8% 110.0% 5.2x 30.0x Zynga, Inc. United States 5.21 ‐2% 4,568.6 3,443.1 873.3 73.6 8.4% ‐31.8% 3.9x 46.8x
Adjusted Weighted Average 8.9x 27.7x 11 | M&A and Investment Summary February 2014 Digital Advertising
. There were a total of 39 transactions announced (17 acquisitions and 22 investments) in the Digital Advertising segment, worth atotal of $698 million in aggregate reported value . Select acquisitions: • Conversant’s (fka ValueClick) $30 million purchase of SET Media, which provides digital video technology • Criteo’s $29 million purchase of France‐based Tedemis, which provides real‐time personalized email marketing solutions • Questex Media Group’s acquisition of JAZD Markets, which offers online B2B marketing services . Select investments: • The $47 million investment led by SAP Ventures in Kaltura, a provider of open‐source video technology • Institutional Venture Partners’ $30 million investment in ZEFR (fka MovieClips), which provides tools to monitor and monetize videos
DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Mobile Marketing 9 23% $9.7 1% 7 ‐ 0 ‐ 2 $9.7 Digital Video 8 21% 113.5 16% 3 26.0 0 ‐ 5 87.5 Local Search 5 13% 24.0 3% 1 ‐ 0 ‐ 4 24.0 Vertical Search 5 13% 17.2 2% 1 ‐ 0 ‐ 4 17.2 Ad Networks/Exchanges 4 10% 17.0 2% 2 ‐ 0 ‐ 2 17.0 Online Lead Generation 2 5% 338.5 49% 1 321.5 0 ‐ 1 17.0 Other* 6 15% 177.8 25% 2 29.0 0 ‐ 4 148.8 Total 39 100% 697.7 100% 17 376.5 0 0.0 22 321.2 *Other includes Comparison Shopping, Digital Promotion/Coupon, and Email Services
12 | M&A and Investment Summary February 2014 Digital Advertising Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Angie's List, Inc. United States $13.91 ‐51% $ 813.8 $ 772.9 $ 245.6 $ (24.0) NM 57.7% 3.1x NM AOL Inc. United States 43.78 ‐18% 3,478.5 3,393.2 2,319.9 436.3 18.8% 5.8% 1.5x 7.8x Autobytel Inc. United States 15.76 ‐16% 140.4 130.7 78.4 4.6 5.8% 17.3% 1.7x 28.7x Bankrate, Inc. United States 20.13 ‐13% 2,069.5 2,136.4 457.4 108.8 23.8% 0.1% 4.7x 19.6x Blinkx plc United States 1.69 ‐57% 674.3 602.5 227.5 31.8 14.0% 49.9% 2.6x 18.9x Blucora, Inc. United States 19.24 ‐36% 811.7 780.7 574.0 103.0 17.9% 41.1% 1.4x 7.6x Constant Contact, Inc. United States 27.57 ‐16% 845.3 722.1 285.4 30.5 10.7% 13.2% 2.5x 23.7x Conversant, Inc. United States 24.86 ‐23% 1,659.6 1,718.3 573.1 207.2 36.1% ‐13.3% 3.0x 8.3x Criteo SA * France 53.47 ‐1% 3,040.1 2,733.3 613.0 33.4 5.4% 63.3% 4.5x 81.9x Ctrip.com International Ltd. China 54.01 ‐12% 7,008.8 6,324.6 876.6 152.1 17.4% 29.5% 7.2x 41.6x Demand Media, Inc. United States 4.85 ‐50% 414.0 356.7 394.6 46.4 11.8% 3.7% 0.9x 7.7x Dice Holdings, Inc. United States 7.36 ‐29% 398.7 478.4 213.5 62.7 29.4% 9.3% 2.2x 7.6x Digital Globe Services Inc. United States 3.73 ‐21% 111.2 106.8 25.5 3.4 13.4% 27.8% 4.2x 31.2x eHealth, Inc. * United States 48.00 ‐24% 893.8 786.8 179.2 11.6 6.5% 15.2% 4.4x 68.1x Google Inc. United States 1,215.65 ‐1% 408,520.2 357,605.2 59,825.0 18,028.0 30.1% 19.2% 6.0x 19.8x Groupon, Inc. United States 8.31 ‐35% 5,677.7 4,444.6 2,573.7 140.0 5.4% 10.2% 1.7x 31.7x Hi‐Media S.A. France 3.05 ‐7% 136.4 155.0 258.2 15.9 6.2% ‐12.3% 0.6x 9.7x HomeAway, Inc. * United States 45.87 ‐6% 4,238.8 3,858.0 346.5 59.2 17.1% 23.6% 11.1x 65.2x IAC/InterActiveCorp United States 77.53 ‐1% 6,374.3 6,433.3 3,023.0 545.0 18.0% 7.9% 2.1x 11.8x InternetQ PLC United Kingdom 6.62 ‐4% 257.4 250.1 115.4 11.5 9.9% 36.9% 2.2x 21.8x LeGuide.com S.A. France 40.04 ‐28% 142.9 106.9 66.5 14.4 21.6% 41.3% 1.6x 7.4x MakeMyTrip Limited India 25.85 ‐13% 972.0 906.3 249.7 (16.7) NM 13.2% 3.6x NM Millennial Media Inc. United States 6.04 ‐42% 642.1 542.9 259.2 (11.1) NM 45.9% 2.1x NM Monster Worldwide, Inc. United States 7.97 ‐2% 766.1 867.2 807.6 112.3 13.9% ‐9.3% 1.1x 7.7x Move, Inc. United States 12.91 ‐30% 507.3 471.0 227.0 13.6 6.0% 14.0% 2.1x 34.7x Opera Software ASA Norway 13.62 ‐14% 1,801.5 1,635.9 300.1 82.5 27.5% 38.9% 5.5x 19.8x OPT, Inc. Japan 9.20 ‐28% 271.1 153.1 662.4 20.4 3.1% ‐14.3% 0.2x 7.5x Pacific Online Ltd. China 0.76 ‐8% 826.0 781.3 123.4 50.5 40.9% 12.1% 6.3x 15.5x QuinStreet, Inc. United States 6.59 ‐32% 286.6 249.6 297.8 26.7 9.0% ‐9.5% 0.8x 9.3x ReachLocal, Inc. United States 10.58 ‐39% 293.9 213.7 514.1 22.5 4.4% 12.9% 0.4x 9.5x RetailMeNot, Inc. United States 41.77 ‐14% 2,203.2 2,078.6 209.8 70.8 33.7% 45.0% 9.9x 29.4x Rightmove plc * United Kingdom 46.16 ‐2% 4,468.0 4,456.7 234.5 163.8 69.9% 17.2% 19.0x 27.2x Rocket Fuel Inc. United States 56.06 ‐22% 1,965.1 1,878.7 240.6 (10.2) NM 125.7% 7.8x NM Rovi Corporation United States 24.84 ‐6% 2,428.9 3,099.9 538.1 181.3 33.7% 2.3% 5.8x 17.1x Septeni Holdings Co., Ltd. Japan 12.11 ‐20% 305.5 255.6 466.5 22.3 4.8% 12.0% 0.5x 11.4x TiVo Inc. * United States 13.50 ‐5% 1,628.3 798.4 406.3 9.0 2.2% 33.7% 2.0x 88.9x TradeDoubler AB Sweden 2.74 ‐26% 116.2 75.3 312.1 8.3 2.7% ‐13.3% 0.2x 9.0x Travelzoo Inc. United States 23.62 ‐30% 354.1 287.5 158.2 27.3 17.2% 4.7% 1.8x 10.5x Tree.Com, Inc. United States 33.81 ‐3% 376.6 288.9 126.8 6.7 5.3% 97.6% 2.3x 42.9x Tremor Video, Inc. United States 4.34 ‐61% 215.5 122.8 131.8 (7.2) NM 25.3% 0.9x NM 13 | M&A and Investment Summary February 2014 Digital Advertising Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA TripAdvisor Inc. United States 99.72 ‐3% $ 14,183.5 $ 14,069.5 $ 944.7 $ 310.8 32.9% 23.8% 14.9x 45.3x Trulia, Inc. United States $30.42 ‐42% 1,134.6 1,139.1 143.7 (5.9) NM 111.1% 7.9x NM Velti Plc Ireland 0.03 ‐99% 2.9 15.2 232.1 (136.5) NM ‐1.6% 0.1x NM Vocus Inc. United States 13.72 ‐4% 289.9 334.0 186.9 (2.8) NM 9.4% 1.8x NM Voltari Corporation United States 3.93 ‐48% 18.1 16.4 88.8 20.1 22.6% 156.4% 0.2x 0.8x Web.com Group, Inc. United States 37.01 ‐1% 1,763.7 2,313.0 492.3 97.3 19.8% 20.8% 4.7x 23.8x Yahoo! Inc. United States 38.47 ‐8% 39,025.6 36,900.6 4,680.4 1,206.3 25.8% ‐6.1% 7.9x 30.6x Yelp, Inc. * United States 97.39 ‐2% 6,769.7 6,380.0 233.0 2.4 1.0% 69.4% 27.4x NM Yandex N.V. Netherlands 37.68 ‐17% 12,195.3 11,676.4 1,099.7 460.3 41.9% 37.3% 10.6x 25.4x Youku Tudou Inc. * China 30.86 ‐16% 5,170.9 4,647.8 492.8 52.0 10.6% 68.7% 9.4x 89.3x YuMe, Inc. United States 7.66 ‐37% 244.6 195.1 151.1 5.3 3.5% 29.5% 1.3x 36.6x Zillow, Inc. * United States 87.62 ‐15% 3,432.3 3,137.0 197.5 (5.5) NM 69.1% 15.9x NM
Adjusted Weighted Average 6.3x 21.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (15.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (49.1x)
14 | M&A and Investment Summary February 2014 Marketing Technology
. Social Technology was the most active Marketing Technology subsegment with 15 transactions announced, worth $78 million in aggregate reported value. Commerce Management was the highest reported value subsegment with eight deals announced, worth $157 million in aggregate reported value . Select acquisitions: • Oracle’s acquisition of DMP BlueKai for a reported $400 million • Rovi Corporation’s $69 million purchase of Veveo, which provides personalized search and discovery solutions for TV providers • Open Table’s $17 million acquisition of Ness Computing, which provides a personalized restaurant recommendation platform . Select investments: • TPG Growth’s $125 million investment in Domo, which provides business intelligence tools
MARKETING TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Social Technology 15 15% $78.1 8% 4 $4.7 0 ‐ 11 $73.4 Mobile Technology 13 13% 92.4 10% 4 19.7 0 ‐ 972.7 Analytics & Reporting 12 12% 51.6 5% 2 ‐ 0 ‐ 10 51.6 Content Management 12 12% 129.7 14% 6 ‐ 0 ‐ 6129.7 Commerce Management 8 8% 157.1 17% 3 100.0 0 ‐ 557.1 BI Tools 6 6% 134.2 14% 2 4.0 0 ‐ 4130.2 CRM 5 5% 19.5 2% 2 ‐ 0 ‐ 319.5 Other* 26 27% 286.5 30% 11 86.0 0 ‐ 15 200.5 Total 97 100% 949.1 100% 34 214.4 0 0.0 63 734.7
*Other includes MRM/Workflow Management, Online Targeting/Optimization, SEM/SEO Tools, Website Creation/Hosting, Search & Discovery, Data Quality, Market Research Software, Product/Price, SFA/Lead Management
15 | M&A and Investment Summary February 2014 Marketing Technology Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accelrys Inc. * United States $12.49 ‐1% $ 695.3 $ 628.4 $ 168.5 $ 4.5 2.7% 3.7% 3.7x 138.3x Actuate Corporation United States 5.67 ‐31% 270.1 191.1 134.5 13.7 10.2% ‐3.1% 1.4x 13.9x Adobe Systems Inc. United States 69.92 0% 34,722.6 33,062.8 4,055.2 770.4 19.0% ‐ 7.9% 8.2x 42.9x Bazaarvoice, Inc. United States 6.99 ‐39% 515.0 440.2 176.1 (35.2) NM 32.1% 2.5x NM Bitauto Holdings Limited China 40.11 ‐1% 1,664.5 1,560.6 213.3 41.7 19.5% 41.0% 7.3x 37.5x Blackbaud Inc. United States 31.85 ‐25% 1,436.6 1,577.6 503.8 99.0 19.7% 12.6% 3.1x 15.9x Brightcove, Inc. United States 10.12 ‐38% 291.2 255.1 109.9 (1.6) NM 24.9% 2.3x NM ChannelAdvisor Corporation United States 44.79 ‐10% 1,089.6 986.7 68.0 (10.6) NM 26.9% 14.5x NM ChinaCache International Holdings China 21.25 ‐11% 497.3 453.7 160.9 0.1 0.1% 28.7% 2.8x NM Constant Contact, Inc. United States 27.95 ‐15% 857.0 733.8 285.4 30.5 10.7% 13.2% 2.6x 24.1x Covisint Corporation United States 10.63 ‐28% 398.5 343.8 98.4 (27.1) NM 13.9% 3.5x NM Cvent, Inc. * United States 39.79 ‐14% 1,613.2 1,455.4 111.1 5.7 5.2% 33.1% 13.1x 253.4x Dealertrack Technologies, Inc. United States 54.37 ‐2% 2,400.9 2,438.2 481.5 57.9 12.0% 23.8% 5.1x 42.1x Demandware, Inc. * United States 75.03 ‐2% 2,596.2 2,320.9 103.7 (16.4) NM 30.5% 22.4x NM Digital River Inc. United States 18.06 ‐11% 597.5 293.8 389.7 33.5 8.6% 0.9% 0.8x 8.8x E2open, Inc. United States 28.51 ‐4% 818.8 811.5 69.5 (18.7) NM ‐6.6% 11.7x NM eBay Inc. United States 58.34 ‐2% 75,530.2 70,628.2 16,047.0 4,771.0 29.7% 14.0% 4.4x 14.8x Endurance International Group United States 15.41 ‐6% 1,922.7 2,923.3 520.3 61.5 11.8% 78.1% 5.6x 47.5x Informatica Corporation United States 41.35 ‐6% 4,515.9 3,838.5 948.2 164.1 17.3% 16.8% 4.0x 23.4x Infosystems S.A. Poland 0.86 ‐41% 3.5 2.9 2.8 1.2 41.1% 14.7% 1.0x 2.5x Interactive Intelligence Group Inc. United States 78.07 ‐3% 1,579.0 1,480.9 318.2 28.1 8.8% 34.1% 4.7x 52.7x IBM Corporation United States 185.27 ‐14% 192,929.2 221,731.2 99,751.0 25,019.0 25.1% ‐4.6% 2.2x 8.9x Jive Software, Inc. United States 8.42 ‐54% 583.0 483.2 145.8 (59.8) NM 28.2% 3.3x NM LivePerson Inc. * United States 13.34 ‐12% 722.1 630.2 177.8 5.7 3.2% 13.0% 3.5x 110.7x Marin Software Incorporated United States 12.15 ‐39% 396.5 298.3 77.3 (29.6) NM 29.8% 3.9x NM Marketo, Inc. United States 42.06 ‐7% 1,650.9 1,530.1 95.9 (40.5) NM 64.2% 16.0x NM Mercadolibre, Inc. Argentina 94.23 ‐35% 4,160.5 3,961.0 472.6 165.4 35.0% 26.5% 8.4x 23.9x MicroStrategy Inc. United States 134.45 ‐1% 1,519.4 1,162.1 575.9 40.3 7.0% 1.8% 2.0x 28.8x NetSuite Inc. * United States 119.63 ‐1% 8,934.4 8,736.9 414.5 (38.4) NM 34.2% 21.1x NM Nuance Communications, Inc. United States 15.29 ‐35% 4,849.3 6,435.5 1,863.0 209.9 11.3% 6.3% 3.5x 30.7x Open Text Corporation Canada 50.85 ‐4% 6,150.2 6,181.1 1,372.9 421.8 30.7% 7.6% 4.5x 14.7x Opera Software ASA Norway 13.32 ‐16% 1,761.7 1,596.1 300.1 82.5 27.5% 38.9% 5.3x 19.3x Oracle Corporation United States 38.95 0% 175,174.1 162,844.1 37,552.0 16,289.0 43.4% 0.9% 4.3x 10.0x PROS Holdings, Inc. * United States 41.06 ‐1% 1,154.8 1,110.1 144.8 10.0 6.9% 23.0% 7.7x 110.8x PTC Inc. United States 39.87 0% 4,732.7 4,729.4 1,298.7 289.0 22.3% 3.3% 3.6x 16.4x Qlik Technologies, Inc. * United States 30.87 ‐18% 2,739.8 2,512.1 470.5 11.7 2.5% 21.1% 5.3x 215.6x Rovi Corporation United States 24.99 ‐6% 2,443.5 3,114.6 538.1 181.3 33.7% 2.3% 5.8x 17.2x Sage Group plc United Kingdom 7.26 ‐1% 7,964.7 8,567.5 2,305.6 669.0 29.0% 2.7% 3.7x 12.8x Salesforce.com, Inc United States 66.22 0% 39,930.7 40,966.0 4,071.0 83.3 2.0% 33.5% 10.1x NM SAP AG Germany 80.29 ‐10% 95,826.4 97,919.6 23,219.9 7,596.8 32.7% 3.7% 4.2x 12.9x
16 | M&A and Investment Summary February 2014 Marketing Technology Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Sizmek Inc. United States 11.51 ‐1% $ 354.5 $ 331.9 $ 161.1 $ 22.9 14.2% 14.6% 2.1x 14.5x Sky‐mobi Limited China 6.28 ‐7% 185.8 85.0 84.3 7.2 8.6% ‐16.3% 1.0x 11.8x Sungy Mobile Limited China 26.12 ‐8% 845.1 826.0 47.3 14.1 29.8% 0.0% 17.5x 58.7x Synchronoss Technologies, Inc. United States 34.75 ‐12% 1,413.0 1,349.7 349.0 78.5 22.5% 27.5% 3.9x 17.2x Tableau Software, Inc. * United States 97.00 ‐5% 6,115.4 5,862.8 232.4 10.5 4.5% 82.0% 25.2x NM Teradata Corporation United States 46.28 ‐30% 7,367.8 6,920.8 2,692.0 714.0 26.5% 1.0% 2.6x 9.7x TIBCO Software Inc. United States 22.03 ‐19% 3,577.0 3,372.1 1,070.0 193.7 18.1% 4.4% 3.2x 17.4x Verint Systems Inc. United States 47.17 ‐4% 2,521.5 2,797.6 880.5 177.0 20.1% 7.0% 3.2x 15.8x Vocus Inc. United States 13.72 ‐4% 289.9 334.0 186.9 (2.8) NM 9.4% 1.8x NM Weborama France 15.27 ‐25% 53.3 49.9 38.2 3.9 10.3% 3.8% 1.3x 12.7x Wix.com ltd Israel 31.32 ‐4% 1,166.7 1,065.5 80.5 (25.3) NM 84.2% 13.2x NM
Adjusted Weighted Average 4.3x 13.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (17.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (92.0x)
17 | M&A and Investment Summary February 2014 Agency & Marketing Services
. There were 29 transactions announced in the Agency & Marketing Services segment in February. Digital Agency and Branded Communications were the most active subsegments with five and three transactions announced, respectively . Select acquisitions: • HB Agency’s acquisition of Winans Creative, which provides website branding and designing • Didit’s acquisition of Public Relations firm LVM Group • Acosta Sales & Marketing’s purchase of Anderson Daymon Worldwide, a sales and marketing agency
AGENCY & MARKETING SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Agency 5 17% ‐ 0% 5 ‐ 0 ‐ 0 ‐ Branded Communications 3 10% 5.0 40% 3 5.0 0 ‐ 0 ‐ Specialty Agency 3 10% ‐ 0% 3 ‐ 0 ‐ 0 ‐ Database/Analytics 2 7% 7.5 60% 0 ‐ 1 ‐ 17.5 Other* 16 55% ‐ 0% 14 ‐ 1 ‐ 1 ‐ Total 29 100% 12.5 0% 25 5.0 2 0.0 2 7.5 *Other includes DM Agency, Loyalty/Retention, Media Planning/Buying, B‐to‐B Agency, Channel Services, Design Agency, Experiential Marketing, General Agency, Marketing Consulting, Promotion Agency, Public Relations, Retail Services, and Social Agency
18 | M&A and Investment Summary February 2014 Agency Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Cello Group Plc United Kingdom $1.39 ‐11% $ 115.6 $ 134.7 $ 241.4 $ 13.9 5.8% 11.9% 0.6x 9.7x Charm Communications Inc. China 4.00 ‐32% 160.1 80.2 168.8 (2.5) NM ‐15.1% 0.5x NM Chime Communications plc * United Kingdom 5.93 ‐6% 575.8 603.4 530.8 15.5 2.9% ‐0.7% 1.1x 38.9x Creston plc United Kingdom 1.88 ‐3% 112.1 109.3 123.5 18.5 15.0% ‐2.5% 0.9x 5.9x Dentsu Inc. Japan 37.76 ‐12% 10,889.7 11,131.3 21,467.5 699.4 3.3% 0.0% 0.5x 15.9x Enero Group Limited Australia 0.80 ‐5% 68.8 53.3 202.5 3.3 1.7% ‐23.4% 0.3x NM Havas France 8.41 ‐4% 3,391.8 4,038.0 2,466.0 399.4 16.2% 4.5% 1.6x 10.1x Huntsworth plc United Kingdom 1.18 ‐2% 371.3 486.9 291.1 50.7 17.4% ‐1.5% 1.7x 9.6x M&C Saatchi plc United Kingdom 4.96 ‐15% 307.5 278.4 291.2 33.7 11.6% 5.9% 1.0x 8.3x MDC Partners Inc. United States 22.90 ‐13% 1,125.0 1,858.1 1,148.9 108.0 9.4% 7.3% 1.6x 17.2x Next Fifteen Communications Group plc United Kingdom 1.81 ‐7% 109.5 116.2 161.0 16.0 9.9% 4.9% 0.7x 7.3x Omnicom Group Inc. United States 75.28 ‐2% 19,437.7 21,436.2 14,584.5 2,151.5 14.8% 2.6% 1.5x 10.0x OPT, Inc. Japan 9.20 ‐28% 271.1 153.1 662.4 20.4 3.1% ‐14.3% 0.2x 7.5x Porta Communications Plc United Kingdom 0.27 ‐9% 43.5 49.6 25.4 (3.1) NM 531.3% 1.9x NM Publicis Groupe SA France 93.92 ‐3% 19,402.2 18,651.1 9,600.3 1,817.1 18.9% 5.2% 1.9x 10.3x Sapient Corp. United States 17.36 ‐3% 2,433.7 2,154.6 1,223.9 158.1 12.9% 12.3% 1.8x 13.6x The Interpublic Group of Companies, Inc. United States 17.49 ‐2% 7,416.5 7,721.6 7,122.3 816.3 11.5% 2.4% 1.1x 9.5x WPP plc United Kingdom 21.53 ‐8% 28,991.6 33,180.4 18,462.6 3,057.4 16.6% 6.2% 1.8x 10.9x
Adjusted Weighted Average 1.5x 11.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (20.3x)
19 | M&A and Investment Summary February 2014 Marketing Services Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $37.86 ‐2% $ 2,891.7 $ 2,834.1 $ 1,097.5 $ 182.0 16.6% ‐1.1% 2.6x 15.6x Aimia Inc. Canada 16.62 ‐7% 2,874.8 3,135.7 1,510.0 (467.4) NM ‐25.6% 2.1x NM Alliance Data Systems Corporation * United States 284.27 ‐2% 13,847.6 18,956.4 4,319.1 1,315.0 30.4% 18.6% 4.4x 14.4x CSG Systems International Inc. United States 27.72 ‐14% 938.0 992.2 747.5 143.1 19.2% ‐1.2% 1.3x 6.9x Data Group Ltd. Canada 0.60 ‐74% 14.2 105.8 290.3 23.7 8.2% ‐5.2% 0.4x 4.5x DST Systems Inc. United States 94.99 ‐1% 3,970.6 4,274.8 2,658.6 454.5 17.1% 3.2% 1.6x 9.4x Fair Isaac Corporation United States 53.15 ‐16% 1,855.6 2,237.7 737.8 191.1 25.9% 6.0% 3.0x 11.7x Harte‐Hanks Inc. United States 7.97 ‐21% 498.5 522.8 559.6 61.1 10.9% ‐27.1% 0.9x 8.6x High Co. SA France 8.04 ‐3% 83.9 45.1 184.1 15.4 8.4% ‐0.7% 0.2x 2.9x Insignia Systems Inc. United States 3.16 ‐2% 40.3 19.5 27.8 3.5 12.5% 37.6% 0.7x 5.6x Multiplus SA Brazil 11.61 ‐29% 1,882.6 1,465.7 717.2 118.5 16.5% 16.0% 2.0x 12.4x PDI, Inc. United States 5.10 ‐35% 77.3 26.2 150.8 (2.9) NM 18.9% 0.2x NM Pitney Bowes Inc. United States 25.00 ‐4% 5,063.4 7,767.7 3,869.4 824.3 21.3% ‐1.2% 2.0x 9.4x Points International Ltd. * Canada 29.62 ‐8% 454.3 407.1 174.0 3.3 1.9% 32.2% 2.3x 122.4x Vitreous Glass, Inc. Canada 2.53 ‐7% 15.5 15.4 6.2 2.0 33.0% ‐4.6% 2.5x 7.5x Viad Corp United States 24.13 ‐17% 490.5 381.6 972.8 68.2 7.0% ‐5.1% 0.4x 5.6x
Adjusted Weighted Average 2.0x 12.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (47.5x)
20 | M&A and Investment Summary February 2014 Traditional Media
. There were 16 transactions announced in the Traditional Media segment in February, all of which were strategic acquisitions, worth a total of $45.4 billion in aggregate reported value . Select acquisitions: • Comcast’s purchase of Time Warner Cable for approximately $45.2 billion, at a valuation of 3.1x revenue, and 9.0x EBITDA • Emmis Communications’ $131 million purchase of urban adult contemporary stations WBLS 107.5 and WLIB 1190 • The E.W. Scripps Company’s acquisition of two television stations owned by Granite Broadcasting Corp., WMYD and WKBW for $110 million in cash • Ubiquity Broadcasting Corporation’s $3 million purchase of video and film production company Stray Angel Films
TRADTIONAL MEDIA TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Entertainment Media 7 44% $65.3 0% 7 $65.3 0 ‐ 0 ‐ Consumer Magazine Publishing 3 19% 4.1 0% 3 4.1 0 ‐ 0 ‐ Broadcast Television 2 13% 165.0 0% 2 165.0 0 ‐ 0 ‐ B‐to‐B Media 1 6% ‐ 0% 1 ‐ 0 ‐ 0 ‐ Cable & Satellite Television 1 6% 45,000.2 99% 1 45,000.2 0 ‐ 0 ‐ Radio 1 6% 131.0 0% 1 131.0 0 ‐ 0 ‐ Other* 1 6% 0.0 0% 1 ‐ 0 ‐ 0 ‐ Total 16 100% 45,365.6 0% 16 45,365.6 0 0.0 0 0.0
*Other includes Consumer Book Publishing
21 | M&A and Investment Summary February 2014 Traditional Media Public Company Valuation
($ in Millions, except stock price data) Large Cap Diversified Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CBS Corporation United States $66.40 ‐1% $ 39,408.1 $ 45,447.1 $ 15,284.0 $ 3,736.0 24.4% 8.5% 3.0x 12.2x Discovery Communications, Inc. * United States 82.13 ‐10% 28,203.3 34,202.3 5,535.0 2,304.0 41.6% 23.4% 6.2x 14.8x News Corporation United States 18.02 ‐1% 10,433.9 7,667.9 8,747.0 645.0 7.4% 2.4% 0.9x 11.9x Time Warner Inc. United States 65.77 ‐7% 58,710.3 77,013.3 29,795.0 7,769.0 26.1% 3.7% 2.6x 9.9x Twenty‐First Century Fox, Inc. * United States 33.04 ‐8% 74,656.2 89,455.2 29,789.0 6,104.0 20.5% 40.3% 3.0x 14.7x Viacom, Inc. United States 86.86 ‐1% 38,045.2 48,717.2 13,677.0 4,344.0 31.8% 3.2% 3.6x 11.2x The Walt Disney Company United States 80.48 ‐1% 141,005.7 154,981.7 46,009.0 12,362.0 26.9% 7.4% 3.4x 12.5x
Adjusted Weighted Average 3.3x 11.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.2x)
B‐to‐B Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Euromoney Institutional Investor PLC United Kingdom $22.07 ‐5% $ 2,795.8 $ 2,826.3 $ 678.1 $ 206.3 30.4% 2.7% 4.2x 13.7x Global Sources Ltd. Hong Kong 6.80 ‐18% 233.9 100.1 198.1 42.0 21.2% ‐14.6% 0.5x 2.4x Informa plc Switzerland 8.66 ‐10% 5,231.1 6,543.3 1,897.3 616.6 32.5% ‐8.1% 3.4x 10.6x TechTarget, Inc. * United States 7.00 ‐6% 222.1 179.9 88.5 3.6 4.1% ‐11.5% 2.0x 49.6x The Dolan Company United States 0.13 ‐96% 4.0 129.4 255.4 33.2 13.0% 38.9% 0.5x 3.9x UBM plc United Kingdom 11.73 ‐8% 2,847.4 3,692.3 1,326.5 307.1 23.2% 12.2% 2.8x 12.0x
Adjusted Weighted Average 3.4x 11.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.8x)
Radio Broadcasting Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Beasley Broadcast Group Inc. United States $9.03 ‐10% $ 208.0 $ 300.5 $ 104.9 $ 29.1 27.7% 4.7% 2.9x 10.3x CC Media Holdings, Inc. United States 7.00 ‐13% 615.6 20,632.1 6,243.0 1,783.5 28.6% ‐0.1% 3.3x 11.6x Cumulus Media Inc. United States 6.53 ‐20% 1,339.9 3,967.3 1,087.8 352.9 32.4% 1.3% 3.6x 11.2x Emmis Communications Corp. United States 3.24 ‐12% 135.1 310.9 201.5 35.7 17.7% 8.7% 1.5x 8.7x Entercom Communications Corp. United States 9.74 ‐15% 377.4 896.5 377.6 100.9 26.7% ‐2.9% 2.4x 8.9x Journal Communications Inc. United States 9.14 ‐6% 465.8 685.2 418.1 87.1 20.8% 12.8% 1.6x 7.9x Radio One Inc. United States 5.02 ‐14% 237.9 1,223.5 448.7 135.9 30.3% 5.7% 2.7x 9.0x Salem Communications Corp. United States 8.93 ‐12% 222.5 506.9 236.9 50.9 21.5% 3.4% 2.1x 10.0x Sirius XM Holdings Inc. * United States 3.61 ‐14% 22,010.7 25,473.9 3,799.1 1,300.5 34.2% 11.7% 6.7x 19.6x Spanish Broadcasting System Inc. United States 4.50 ‐9% 32.7 369.1 153.2 47.3 30.9% 8.8% 2.4x 7.8x Pandora Media, Inc. * United States 38.49 ‐3% 7,598.8 7,254.4 588.3 (42.0) NM 53.5% 12.3x NM
Adjusted Weighted Average 6.2x 10.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.9x)
22 | M&A and Investment Summary February 2014 Traditional Media Public Company Valuation
($ in Millions, except stock price data)
Broadcast, Cable, and Satellite Television Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMC Networks Inc. * United States $73.75 ‐1% $ 5,332.0 $ 7,007.0 $ 1,591.9 $ 511.3 32.1% 17.7% 4.4x 13.7x British Sky Broadcasting Group plc United Kingdom 15.74 ‐1% 24,475.7 27,112.8 12,497.3 2,645.6 21.2% 7.2% 2.2x 10.2x Cablevision Systems Corporation United States 17.41 ‐14% 4,659.6 13,743.5 6,232.2 1,597.6 25.6% ‐7.1% 2.2x 8.6x CBS Corporation United States 66.40 ‐1% 39,408.1 45,447.1 15,284.0 3,736.0 24.4% 8.5% 3.0x 12.2x Charter Communications, Inc. United States 124.14 ‐14% 13,176.7 27,358.7 8,155.0 2,810.0 34.5% 8.7% 3.4x 9.7x Comcast Corporation United States 51.08 ‐8% 132,266.5 176,143.5 64,657.0 21,434.0 33.2% 3.3% 2.7x 8.2x Crown Media Holdings Inc. United States 3.34 ‐8% 1,201.3 1,601.8 377.8 287.2 76.0% 8.0% 4.2x 5.6x DIRECTV United States 76.12 0% 38,781.1 56,517.1 31,754.0 7,806.0 24.6% 6.8% 1.8x 7.2x Discovery Communications, Inc. * United States 82.13 ‐10% 28,203.3 34,202.3 5,535.0 2,304.0 41.6% 23.4% 6.2x 14.8x Dish Network Corp. United States 57.24 ‐5% 26,235.6 30,167.0 13,904.9 2,884.8 20.7% 5.5% 2.2x 10.5x Entravision Communications Corporation United States 6.03 ‐17% 531.0 851.2 223.9 69.5 31.0% 0.3% 3.8x 12.2x General Communication Inc. United States 10.39 ‐12% 420.7 1,759.4 780.0 245.2 31.4% 12.2% 2.3x 7.2x Gray Television Inc. United States 11.68 ‐23% 677.4 1,467.1 377.3 143.4 38.0% 4.0% 3.9x 10.2x Grupo Televisa, S.A.B. Mexico 28.78 ‐10% 14,815.3 19,027.7 5,570.6 2,175.8 39.1% 6.5% 3.4x 8.7x Journal Communications Inc. United States 9.14 ‐6% 465.8 685.2 418.1 87.1 20.8% 12.8% 1.6x 7.9x Liberty Global plc United Kingdom 85.35 ‐6% 33,324.7 77,513.0 14,474.2 6,447.0 44.5% 45.8% 5.4x 12.0x LIN Media LLC United States 22.28 ‐24% 1,222.8 2,167.8 652.4 197.4 30.3% 17.9% 3.3x 11.0x Nexstar Broadcasting Group, Inc. * United States 42.10 ‐25% 1,280.1 2,267.0 502.3 168.1 33.5% 32.7% 4.5x 13.5x Scripps Networks Interactive, Inc. United States 80.96 ‐7% 11,837.1 12,988.1 2,530.8 1,102.5 43.6% 9.7% 5.1x 11.8x Sinclair Broadcast Group Inc. United States 28.32 ‐24% 2,837.7 5,091.3 1,363.1 455.2 33.4% 28.4% 3.7x 11.2x The E. W. Scripps Company United States 19.59 ‐11% 1,091.0 1,075.2 855.8 96.8 11.3% 1.7% 1.3x 11.1x Time Warner Inc. United States 65.77 ‐7% 58,710.3 77,013.3 29,795.0 7,769.0 26.1% 3.7% 2.6x 9.9x Ziggo N.V. Netherlands 45.46 ‐3% 9,092.1 13,269.8 2,160.6 1,191.9 55.2% 1.8% 6.1x 11.1x
Adjusted Weighted Average 3.2x 9.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (12.7x)
Entertainment Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA DreamWorks Animation SKG Inc. * United States $30.01 ‐17% $ 2,537.9 $ 2,743.6 $ 706.9 $ 91.3 12.9% ‐5.7% 3.9x 30.1x Eros International Plc United Kingdom 12.15 ‐2% 596.3 772.6 224.3 61.6 27.5% 10.3% 3.4x 12.5x Lions Gate Entertainment Corp. United States 30.79 ‐19% 4,249.7 5,429.3 2,694.1 305.4 11.3% 4.9% 2.0x 17.8x Live Nation Entertainment, Inc. United States 23.02 ‐7% 4,606.3 5,357.6 6,478.5 492.1 7.6% 11.3% 0.8x 10.9x SFX Entertainment Inc. United States 8.45 ‐37% 745.8 824.3 100.8 (60.5) NM 0.0% 8.2x NM Twenty‐First Century Fox, Inc. United States 33.04 ‐8% 74,656.2 89,455.2 29,789.0 6,104.0 20.5% 40.3% 3.0x 14.7x Liberty Media Corporation United States 136.10 ‐15% 15,543.1 28,813.1 4,652.0 1,234.0 26.5% 258.7% 6.2x 23.3x Village Roadshow Limited Austral ia 6.68 ‐7% 1,066.1 1,387.3 814.7 133.1 16.3% ‐1.1% 1.7x 10.4x World Wrestling Entertainment Inc. * United States 22.74 ‐9% 1,708.9 1,629.1 508.0 42.0 8.3% 4.9% 3.2x 38.8x
Adjusted Weighted Average 3.4x 15.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (30.0x)
23 | M&A and Investment Summary February 2014 Traditional Media Public Company Valuation
($ in Millions, except stock price data)
Out‐of‐Home Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AirMedia Group Inc. China $2.33 ‐27% $ 139.4 $ 36.0 $ 277.7 $ 13.6 4.9% ‐3.9% 0.1x 2.7x APG|SGA SA Switzerland 300.48 ‐2% 884.7 823.8 364.6 151.7 41.6% ‐1.2% 2.3x 5.4x Clear Channel Outdoor Holdings Inc. United States 10.00 ‐6% 3,592.8 8,411.9 2,946.2 719.9 24.4% 0.0% 2.9x 11.7x Clear Media Ltd. Hong Kong 0.98 ‐2% 525.3 417.7 212.3 85.3 40.2% 8.2% 2.0x 4.9x JCDecaux SA France 43.87 ‐3% 9,748.1 9,825.8 3,653.6 766.2 21.0% 4.5% 2.7x 12.8x Lamar Advertising Co. United States 51.62 ‐3% 4,895.5 6,855.6 1,245.8 527.4 42.3% 5.3% 5.5x 13.0x Mood Media Corporation Canada 0.79 ‐55% 136.3 660.3 513.0 94.5 18.4% 28.4% 1.3x 7.0x National CineMedia, Inc. United States 15.62 ‐23% 958.8 1,931.0 462.8 222.5 48.1% 3.1% 4.2x 8.7x NTN Buzztime Inc. * United States 0.60 ‐40% 46.3 44.2 23.1 1.9 8.3% ‐4.7% 1.9x 23.0x Tom Group Ltd. Hong Kong 0.26 ‐28% 1,027.6 1,277.1 248.4 (1.3) NM ‐12.6% 5.1x NM Vitreous Glass, Inc. Canada 2.53 ‐7% 15.5 15.4 6.2 2.0 33.0% ‐4.6% 2.5x 7.5x
Adjusted Weighted Average 3.5x 11.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (15.5x)
Publishing Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A. H. Belo Corporation United States $10.50 ‐2% $ 229.6 $ 147.4 $ 366.3 $ 29.6 8.1% ‐16.8% 0.4x 5.0x Daily Mail and General Trust plc United Kingdom 17.51 ‐3% 6,190.7 7,366.9 2,936.4 504.5 17.2% 0.3% 2.5x 14.6x Emmis Communications Corp. United States 3.24 ‐12% 135.1 310.9 201.5 35.7 17.7% 8.7% 1.5x 8.7x Gannett Co., Inc. United States 29.31 ‐4% 6,664.1 8,076.3 5,161.4 1,044.9 20.2% ‐3.6% 1.6x 7.7x Glacier Media, Inc. Canada 1.21 ‐39% 107.9 251.5 297.4 39.4 13.2% 12.5% 0.8x 6.4x John Wiley & Sons Inc. United States 56.95 ‐1% 3,354.3 3,853.5 1,778.5 324.9 18.3% 1.7% 2.2x 11.9x Journal Communications Inc. United States 9.14 ‐6% 465.8 685.2 418.1 87.1 20.8% 12.8% 1.6x 7.9x Martha Stewart Living Omnimedia Inc. * United States 5.46 0% 309.1 267.9 160.7 2.7 1.7% ‐18.7% 1.7x 97.9x Meredith Corporation United States 46.04 ‐14% 2,046.3 2,360.5 1,467.1 251.2 17.1% 2.2% 1.6x 9.4x Reed Elsevier plc(1) * United Kingdom 15.47 ‐2% 17,979.9 40,233.1 9,944.2 3,154.3 31.7% 0.0% 4.0x 12.8x Scholastic Corporation United States 34.87 0% 1,109.2 1,059.6 1,785.0 165.3 9.3% ‐12.6% 0.6x 6.4x The E. W. Scripps Company United States 19.59 ‐11% 1,091.0 1,075.2 855.8 96.8 11.3% 1.7% 1.3x 11.1x The McClatchy Company United States 5.27 ‐1% 455.0 1,971.0 1,242.2 264.1 21.3% ‐5.1% 1.6x 7.5x The New York Times Company United States 15.83 ‐2% 2,370.7 2,284.0 1,577.2 251.9 16.0% ‐20.7% 1.4x 9.1x
Adjusted Weighted Average 1.8x 11.4x
(1) All financials are representative of the Reed Elsevier combined businesses, except per stock data, which represents Reed Elsevier (LSE:REL) *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (39.3x)
24 | M&A and Investment Summary February 2014 Technology & Communications
. Of the $866 million in reported transaction value in the Technology & Communications segment, $553 million were made in Venture/Growth Capital investments . Activity in the segment was led by the Financial Technology subsegment with 10 deals announced, of which seven were reported at $213 million . Select acquisitions: • Perficient‘s $46 million purchase of ForwardThink Group, a provider of financial technology consulting and software development services, at a valuation of 1.5x revenue. • ClickSoftware Technologies $14.7 million acquisition of Xora, which provides mobile workforce management SaaS for businesses • J2 Global Communications’ acquisition of Faxmate and Ozefax, which are providers of subscription‐based online faxing services for consumers and businesses
TECHNOLOGY & COMMUNICATIONS TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Financial Technology 10 21% $213.3 25% 5 $163.0 0 ‐ 5 $50.3 Big Data Technology 7 15% 20.1 2% 2 ‐ 0 ‐ 520.1 Communications Software 7 15% 16.9 2% 5 ‐ 0 ‐ 216.9 Cloud Computing Technology 5 10% 62.4 7% 4 60.0 0 ‐ 12.4 Networking Equipment 4 8% 4.2 0% 1 ‐ 0 ‐ 34.2 Enterprise Mobility 3 6% 14.7 2% 3 14.7 0 ‐ 0 ‐ Virtualization Technology 3 6% 25.5 3% 1 9.7 0 ‐ 215.8 Cloud Storage 2 4% 350.0 40% 1 ‐ 0 ‐ 1 350.0 Other* 9 19% 508.4 59% 4 65.5 0 ‐ 5 442.9 Total 48 100% 865.5 100% 25 312.9 0 0.0 23 552.6
*Other includes Communications Equipment, Data Center Technology, VoIP Equipment & Software, and Software‐Defined Networking
25 | M&A and Investment Summary February 2014 Technology Public Company Valuation
($ in Millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 3M Company United States $134.34 ‐4% $ 89,026.0 $ 92,202.0 $ 30,871.0 $ 8,037.0 26.0% 3.2% 3.0x 11.5x ACI Worldwide, Inc. United States 59.66 ‐10% 2,299.7 2,960.0 864.9 193.0 22.3% 29.8% 3.4x 15.3x ADATA Technology Co., Ltd. Taiwan 2.41 ‐22% 548.7 695.5 1,062.8 87.8 8.3% 9.3% 0.7x 7.9x Advanced Micro Devices, Inc. United States 3.71 ‐20% 2,693.9 3,654.9 5,299.0 308.0 5.8% ‐2.3% 0.7x 11.9x Akamai Technologies, Inc. United States 62.74 ‐1% 11,230.5 10,556.6 1,577.9 592.2 37.5% 14.8% 6.7x 17.8x AVG Technologies N.V. Netherlands 19.15 ‐28% 1,042.6 1,030.2 407.1 135.0 33.2% 14.4% 2.5x 7.6x Brightcove, Inc. United States 10.12 ‐38% 291.2 255.1 109.9 (1.6) NM 24.9% 2.3x NM CA Technologies United States 33.39 ‐8% 14,951.0 13,868.0 4,582.0 1,566.0 34.2% ‐2.1% 3.0x 8.9x Carbonite, Inc. * United States 10.27 ‐38% 271.6 206.2 107.2 4.0 3.7% 27.5% 1.9x 51.8x CDW Corporation United States 25.54 0% 4,391.8 7,711.5 10,768.6 710.5 6.6% 6.3% 0.7x 10.9x Check Point Software Technologies Ltd. Israel 68.08 ‐1% 13,091.8 11,925.0 1,394.1 771.9 55.4% 3.8% 8.6x 15.4x ChinaCache International Holdings Ltd. China 21.25 ‐11% 497.3 453.7 160.9 0.1 0.1% 28.7% 2.8x NM Citrix Systems, Inc. United States 60.92 ‐21% 11,194.2 10,459.5 2,918.4 648.8 22.2% 12.8% 3.6x 16.1x CommVault Systems, Inc. United States 69.52 ‐23% 3,301.9 2,801.3 567.8 103.4 18.2% 20.4% 4.9x 27.1x Cray Inc. United States 36.06 ‐14% 1,379.2 1,172.5 525.7 35.9 6.8% 24.9% 2.2x 32.7x Crossroads Systems, Inc. United States 2.30 ‐33% 29.6 36.8 12.6 (11.9) NM ‐9.8% 2.9x NM Datalink Corporation United States 14.86 ‐3% 338.6 282.5 594.2 26.9 4.5% 21.0% 0.5x 10.5x Dot Hill Systems Corp. * United States 5.38 ‐5% 317.4 279.9 191.8 2.7 1.4% ‐2.9% 1.5x 102.8x Elecom Co., Ltd. Japan 15.57 ‐3% 342.8 225.2 629.5 80.2 12.7% 0.6% 0.4x 2.8x EMC Corporation United States 26.47 ‐3% 53,618.5 51,598.5 23,222.0 5,612.0 24.2% 6.9% 2.2x 9.2x ePlus inc. United States 56.23 ‐16% 453.4 551.1 1,033.9 77.9 7.5% 7.1% 0.5x 7.1x Euronet Worldwide Inc. United States 38.48 ‐23% 1,950.8 1,959.5 1,413.1 182.6 12.9% 11.5% 1.4x 10.7x F‐Secure Oyj Finland 3.09 ‐6% 481.8 415.6 214.2 49.8 23.3% ‐1.3% 1.9x 8.3x Fusion‐io, Inc. United States 11.46 ‐43% 1,222.0 978.1 374.5 (70.8) NM ‐14.8% 2.6x NM Gemalto NV Netherlands 112.25 ‐11% 9,667.0 9,292.1 3,257.2 516.6 15.9% 11.9% 2.9x 18.0x Google Inc. United States 1,219.21 ‐1% 409,716.5 358,801.5 59,825.0 18,028.0 30.1% 19.2% 6.0x 19.9x Green Dot Corporation United States 20.33 ‐24% 767.0 277.3 582.3 76.2 13.1% 5.0% 0.5x 3.6x Imperva Inc. United States 62.68 ‐2% 1,583.7 1,466.0 137.8 (22.4) NM 32.2% 10.6x NM Integrated Electrical Services, Inc. United States 5.31 ‐24% 95.1 90.7 487.4 4.3 0.9% 2.7% 0.2x 21.2x Intel Corporation United States 24.76 ‐9% 123,106.7 116,556.7 52,708.0 20,563.0 39.0% ‐1.2% 2.2x 5.7x IBM Corporation United States 185.27 ‐14% 192,929.2 221,731.2 99,751.0 25,019.0 25.1% ‐4.6% 2.2x 8.9x Interxion Holding NV Netherlands 24.78 ‐11% 1,705.1 2,084.8 416.8 168.8 40.5% 12.4% 5.0x 12.4x J‐Stream Inc. Japan 4.51 ‐49% 52.4 37.4 44.3 4.0 9.1% ‐15.3% 0.8x 9.3x Limelight Networks, Inc. United States 2.22 ‐13% 217.2 99.6 173.4 (10.3) NM ‐3.8% 0.6x NM LogMeIn, Inc. * United States 42.25 ‐1% 1,023.3 833.8 166.3 7.5 4.5% 19.8% 5.0x 111.7x LSI Corporation United States 11.07 0% 6,180.7 5,370.9 2,370.2 446.0 18.8% ‐5.4% 2.3x 12.0x Melbourne IT Ltd. Australia 1.23 ‐44% 103.2 18.1 92.4 8.4 9.1% ‐39.4% 0.2x 2.1x Micron Technology Inc. United States 24.19 ‐6% 25,662.7 28,522.7 11,281.0 3,109.0 27.6% 41.4% 2.5x 9.2x Microsoft Corporation United States 37.86 ‐3% 314,265.4 254,968.4 83,433.0 31,828.0 38.1% 14.4% 3.1x 8.0x Montage Technology Group Limited China 16.00 ‐40% 440.0 332.3 110.9 29.6 26.7% 41.7% 3.0x 11.2x NEC Corporation Japan 3.42 ‐2% 8,883.0 14,889.5 29,243.1 1,657.1 5.7% ‐3.5% 0.5x 9.0x
26 | M&A and Investment Summary February 2014 Technology Public Company Valuation
($ in Millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA NetApp, Inc. United States $40.62 ‐12% $ 13,456.4 $ 9,382.3 $ 6,392.6 $ 972.9 15.2% 1.2% 1.5x 9.6x Oracle Corporation United States 38.95 0% 175,174.1 162,844.1 37,552.0 16,289.0 43.4% 0.9% 4.3x 10.0x ProAct IT Group AB Sweden 14.19 ‐7% 132.1 153.1 359.4 22.5 6.2% ‐5.3% 0.4x 6.8x Qualys, Inc. * United States 27.59 ‐8% 889.8 793.4 108.0 11.9 11.0% 18.1% 7.3x 66.6x Quantum Corporation United States 1.16 ‐34% 288.4 413.3 565.4 18.1 3.2% ‐7.0% 0.7x 22.9x Rackspace Hosting, Inc. United States 38.00 ‐34% 5,312.9 5,111.3 1,534.8 446.1 29.1% 17.2% 3.3x 11.5x Red Hat, Inc. United States 59.93 0% 11,359.0 10,392.5 1,482.1 302.7 20.4% 16.0% 7.0x 34.3x SanDisk Corp. United States 76.28 ‐1% 17,201.7 16,279.0 6,170.0 2,112.6 34.2% 22.1% 2.6x 7.7x SAP AG Germany 80.29 ‐10% 95,826.4 97,919.6 23,219.9 7,596.8 32.7% 3.7% 4.2x 12.9x Seagate Technology Public Limited Company Ireland 51.92 ‐17% 17,069.0 18,302.0 13,968.0 2,770.0 19.8% ‐14.5% 1.3x 6.6x Silicon Graphics International Corp. United States 12.38 ‐41% 423.0 309.5 666.7 (5.1) NM ‐10.3% 0.5x NM Sony Corporation Japan 17.21 ‐27% 17,859.4 29,845.8 74,506.7 3,423.8 4.6% 14.5% 0.4x 8.7x Splunk, Inc. * United States 95.50 ‐2% 10,771.7 9,874.3 302.6 (71.6) NM 52.1% 32.6x NM Symantec Corporation United States 21.50 ‐21% 14,868.4 13,072.4 6,799.0 1,960.0 28.8% ‐0.6% 1.9x 6.7x Synchronoss Technologies, Inc. United States 34.75 ‐12% 1,413.0 1,349.7 349.0 78.5 22.5% 27.5% 3.9x 17.2x Tableau Software, Inc. * United States 97.00 ‐5% 6,115.4 5,862.8 232.4 10.5 4.5% 82.0% 25.2x NM Teradata Corporation United States 46.28 ‐30% 7,367.8 6,920.8 2,692.0 714.0 26.5% 1.0% 2.6x 9.7x Trend Micro Inc. Japan 33.75 ‐18% 4,531.5 3,154.4 1,061.0 359.4 33.9% 15.4% 3.0x 8.8x The KEYW Holding Corporation United States 18.59 ‐6% 686.5 769.0 298.7 20.8 7.0% 22.7% 2.6x 36.9x VeriSign, Inc. United States 55.23 ‐12% 7,382.2 7,033.0 965.1 588.9 61.0% 10.5% 7.3x 11.9x Violin Memory, Inc. United States 4.21 ‐47% 347.2 213.0 102.5 (115.6) NM 40.8% 2.1x NM VMware, Inc. United States 97.78 ‐4% 42,121.8 36,396.8 5,207.0 1,464.0 28.1% 13.1% 7.0x 24.9x Western Digital Corporation United States 88.42 ‐2% 20,890.3 18,575.3 15,268.0 3,234.0 21.2% ‐2.4% 1.2x 5.7x Xoom Corporation * United States 28.66 ‐21% 1,079.5 863.8 122.2 11.4 9.3% 52.7% 7.1x 76.0x
Adjusted Weighted Average 3.8x 12.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (13.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (41.2x)
27 | M&A and Investment Summary February 2014 Communications Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Aastra Technologies Ltd. Canada $37.84 ‐12% $ 450.7 $ 373.1 $ 540.6 $ 40.6 7.5% ‐5.1% 0.7x 9.2x ADTRAN Inc. United States 26.39 ‐6% 1,494.8 1,377.0 641.7 63.1 9.8% 3.4% 2.1x 21.8x Alcatel‐Lucent France 4.35 ‐9% 11,996.8 12,738.3 19,932.3 1,332.4 6.7% ‐0.1% 0.6x 9.6x Allot Communications Ltd. Israel 17.13 ‐5% 557.9 436.3 96.5 (1.7) NM ‐7.8% 4.5x NM Ambient Corporation United States 1.90 ‐54% 31.8 27.2 20.0 (12.9) NM ‐60.4% 1.4x NM Aruba Networks, Inc. * United States 20.89 ‐20% 2,279.9 2,001.6 637.5 9.2 1.4% 11.6% 3.1x 218.1x AudioCodes Ltd. Israel 9.09 0% 350.5 309.7 137.2 5.8 4.2% 7.6% 2.3x 53.5x Aviat Networks, Inc. United States 1.99 ‐46% 123.7 65.0 406.5 (13.7) NM ‐13.8% 0.2x NM Axesstel Inc. United States 0.15 ‐91% 3.7 12.4 27.4 (6.1) NM ‐54.9% 0.5x NM BlackBerry Limited Canada 10.54 ‐32% 5,466.1 3,489.9 8,514.0 (2,037.0) NM ‐32.3% 0.4x NM Barracuda Networks, Inc. * United States 37.51 ‐9% 1,907.9 1,791.3 225.9 (0.1) NM 0.0% 7.9x NM Blonder Tongue Laboratories Inc. United States 1.05 ‐24% 6.5 11.9 28.4 (1.1) NM ‐3.3% 0.4x NM BroadSoft, Inc. United States 30.88 ‐19% 872.1 804.6 178.5 (0.0) NM 8.3% 4.5x NM Brocade Communications Systems, Inc. United States 9.71 ‐2% 4,215.8 3,815.8 2,198.7 537.0 24.4% ‐3.0% 1.7x 7.1x CalAmp Corp. United States 32.67 ‐3% 1,127.5 1,098.7 224.4 24.0 10.7% 32.2% 4.9x 45.8x Calix Inc. United States 8.06 ‐42% 404.8 322.1 382.6 10.3 2.7% 15.9% 0.8x 31.3x Ciena Corporation United States 25.12 ‐10% 2,605.1 3,345.7 2,082.5 132.4 6.4% 13.6% 1.6x 25.3x Cisco Systems, Inc. United States 21.92 ‐17% 112,916.1 83,023.1 47,873.0 12,980.0 27.1% 1.3% 1.7x 6.4x Clearfield, Inc. United States 23.45 ‐12% 304.6 283.5 59.2 10.1 17.1% 53.6% 4.8x 28.0x ClearOne, Inc. United States 11.56 ‐19% 103.8 83.5 49.6 8.3 16.7% 6.8% 1.7x 10.1x COM DEV International Ltd. Canada 3.60 ‐9% 275.7 268.5 194.4 36.4 18.7% 3.3% 1.4x 7.4x CommScope Holding Company, Inc. United States 23.63 ‐3% 4,392.6 6,560.8 3,480.1 654.7 18.8% 4.8% 1.9x 10.0x Communications Systems Inc. United States 13.02 ‐1% 111.3 96.4 129.8 9.4 7.3% 25.0% 0.7x 10.2x Corning Inc. United States 19.34 ‐1% 26,923.7 25,058.7 7,819.0 2,459.0 31.4% ‐2.4% 3.2x 10.2x CTX Virtual Technologies, Inc. United States 1.85 ‐26% 14.8 14.9 119.2 16.9 14.2% 198.1% 0.1x 0.9x Cyan, Inc. United States 3.46 ‐77% 160.7 101.5 116.6 (34.9) NM 21.6% 0.9x NM DDS Wireless International Inc. Canada 1.64 ‐26% 22.3 13.5 33.8 2.1 6.3% ‐9.0% 0.4x 6.3x Digi International Inc. United States 9.81 ‐23% 253.9 156.0 195.7 16.8 8.6% 2.5% 0.8x 9.3x DragonWave Inc. Canada 1.43 ‐57% 81.7 75.2 100.4 (41.8) NM ‐4.1% 0.7x NM EchoStar Corp. United States 49.85 ‐4% 4,513.6 5,324.2 3,282.5 647.4 19.7% 5.1% 1.6x 8.2x Emulex Corporation United States 7.38 ‐18% 596.8 541.8 475.0 48.0 10.1% ‐4.3% 1.1x 11.3x Ericsson Sweden 13.01 ‐8% 41,871.4 34,664.4 35,457.9 4,999.2 14.1% ‐0.2% 1.0x 6.9x Extreme Networks Inc. United States 5.89 ‐28% 564.7 551.8 370.2 18.7 5.1% 18.4% 1.5x 29.5x F5 Networks, Inc. United States 114.51 0% 8,639.0 8,060.8 1,522.3 469.3 30.8% 7.2% 5.3x 17.2x Finisar Corp. United States 23.93 ‐10% 2,300.4 2,034.3 1,038.6 130.8 12.6% 11.0% 2.0x 15.6x Fleetmatics Group PLC Ireland 37.15 ‐29% 1,369.2 1,255.8 177.4 45.1 25.5% 39.2% 7.1x 27.8x Franklin Wireless Corp. United States 1.75 ‐15% 18.2 8.4 23.2 (0.1) NM ‐36.6% 0.4x NM Gigamon Inc. United States 32.06 ‐23% 996.6 858.5 140.3 (27.4) NM 45.1% 6.1x NM Gogo Inc. * United States 21.30 ‐40% 1,791.3 1,754.4 299.1 11.6 3.9% 38.2% 5.9x 151.9x Harmonic Inc. United States 6.51 ‐21% 647.2 476.6 461.9 23.2 5.0% ‐12.9% 1.0x 20.6x Harris Corporation United States 74.07 0% 7,910.5 9,251.2 4,978.4 1,085.0 21.8% ‐7.0% 1.9x 8.5x Infoblox Inc. * United States 23.96 ‐51% 1,288.4 1,037.5 245.5 3.1 1.3% 27.6% 4.2x 332.5x Interactive Intelligence Group Inc. United States 78.07 ‐3% 1,579.0 1,480.9 318.2 28.1 8.8% 34.1% 4.7x 52.7x
28 | M&A and Investment Summary February 2014 Communications Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA JDS Uniphase Corporation United States $14.06 ‐15% $ 3,282.9 $ 2,773.8 $ 1,703.2 $ 150.1 8.8% 0.9% 1.6x 18.5x Juniper Networks, Inc. United States 27.01 ‐6% 13,535.25 11,688.65 4,669.10 794.9 17.0% 7.0% 2.5x 14.7x KVH Industries Inc. United States 12.96 ‐11% 202.3 185.0 162.3 11.9 7.3% 18.4% 1.1x 15.5x Mavenir Systems, Inc. United States 14.99 ‐3% 351.1 335.6 101.3 (3.7) NM 37.2% 3.3x NM Meru Networks, Inc. United States 4.12 ‐41% 93.3 68.9 105.7 (8.4) NM 8.4% 0.7x NM Mitel Networks Corporation Canada 9.19 ‐11% 901.6 1,120.0 579.4 88.5 15.3% ‐2.1% 1.9x 12.7x Motorola Solutions, Inc. United States 65.90 ‐3% 16,729.7 15,993.7 8,696.0 1,576.0 18.1% 0.0% 1.8x 10.1x Netgear Inc. United States 34.17 ‐2% 1,245.8 997.7 1,369.6 139.2 10.2% 7.7% 0.7x 7.2x Nokia Corporation Finland 7.73 ‐8% 28,690.0 25,374.8 17,547.8 2,366.6 13.5% ‐57.9% 1.4x 10.7x Nuance Communications, Inc. United States 15.29 ‐35% 4,849.3 6,435.5 1,863.0 209.9 11.3% 6.3% 3.5x 30.7x Numerex Corp. United States 14.81 ‐7% 275.5 251.5 75.2 4.1 5.5% 20.5% 3.3x 61.4x Optical Cable Corp. United States 3.70 ‐25% 24.3 33.1 75.3 2.8 3.7% ‐9.9% 0.4x 11.8x Palo Alto Networks, Inc. * United States 72.49 ‐9% 5,369.0 4,930.8 482.9 (17.9) NM 49.2% 10.2x NM PCTEL, Inc. United States 8.73 ‐14% 161.8 106.8 104.1 4.1 4.0% 25.4% 1.0x 25.9x Plantronics, Inc. United States 44.57 ‐11% 1,853.3 1,531.3 813.7 154.5 19.0% 10.6% 1.9x 9.9x Polycom, Inc. United States 13.22 0% 1,809.6 1,530.7 1,368.4 119.3 8.7% ‐1.7% 1.1x 12.8x Procera Networks, Inc. United States 11.74 ‐29% 238.9 132.3 74.7 (15.8) NM 25.2% 1.8x NM RadiSys Corporation United States 4.00 ‐23% 116.4 123.9 237.9 (13.9) NM ‐16.9% 0.5x NM Radware Ltd. Israel 17.54 ‐10% 786.1 651.3 193.0 27.4 14.2% 2.0% 3.4x 23.7x RELM Wireless Corp. United States 3.15 ‐23% 42.8 35.1 26.6 2.2 8.3% ‐3.3% 1.3x 15.9x RingCentral, Inc. * United States 23.52 ‐1% 1,464.0 1,382.4 160.5 (32.1) NM 40.1% 8.6x NM Riverbed Technology, Inc. United States 20.65 ‐3% 3,303.8 3,369.4 1,041.0 147.5 14.2% 24.4% 3.2x 22.8x Sandvine Corporation Canada 2.89 ‐9% 432.1 355.2 106.5 24.5 23.0% 21.2% 3.3x 14.5x ShoreTel, Inc. United States 8.78 ‐10% 539.4 492.2 332.7 10.5 3.1% 17.0% 1.5x 47.1x Sierra Wireless Inc. Canada 21.02 ‐18% 653.8 481.3 441.9 11.3 2.6% 11.2% 1.1x 42.5x SolarWinds, Inc. * United States 46.49 ‐24% 3,493.0 3,347.7 335.4 139.8 41.7% 24.7% 10.0x 23.9x Solera Holdings Inc. United States 68.68 ‐3% 4,737.1 6,135.7 890.1 347.7 39.1% 11.1% 6.9x 17.6x Sonus Networks, Inc. * United States 3.87 ‐2% 1,030.2 821.3 276.7 1.9 0.7% 8.9% 3.0x 431.3x Telcoware Co., Ltd. South Korea 13.19 ‐2% 71.1 23.6 51.6 6.9 13.4% 1.3% 0.5x 3.4x TeleCommunication Systems Inc. United States 2.19 ‐32% 128.6 214.2 362.3 21.1 5.8% ‐25.7% 0.6x 10.1x TESSCO Technologies Inc. United States 37.90 ‐10% 312.0 306.2 594.0 30.2 5.1% ‐24.7% 0.5x 10.1x Transmode AB (publ) Sweden 16.69 ‐12% 462.9 395.6 160.5 30.4 18.9% 1.8% 2.5x 13.0x Ubiquitous Corporation * Japan 10.97 ‐72% 95.8 86.0 7.8 (2.0) NM ‐11.6% 11.0x NM Vecima Networks Inc. Canada 4.96 ‐22% 110.8 81.1 78.5 13.4 17.1% ‐15.2% 1.0x 6.0x Verint Systems Inc. United States 47.17 ‐4% 2,521.5 2,797.6 880.5 177.0 20.1% 7.0% 3.2x 15.8x ViaSat Inc. United States 67.12 ‐9% 3,093.6 3,729.4 1,316.2 165.1 12.5% 25.2% 2.8x 22.6x Vonage Holdings Corporation United States 4.76 ‐4% 1,006.8 1,056.9 829.1 77.2 9.3% ‐2.4% 1.3x 13.7x Westell Technologies, Inc. United States 4.06 ‐17% 241.0 154.2 89.6 4.2 4.7% 126.8% 1.7x 36.4x ZTE Corp. China 2.09 ‐30% 7,181.7 10,709.1 12,716.2 476.6 3.7% ‐12.3% 0.8x 22.5x
Adjusted Weighted Average 2.0x 11.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (188.8x) 29 | M&A and Investment Summary February 2014 Software
. Within the Software segment, a total of $5.4 billion in reported value was reported in strategic activity, while another $1.3 billion in investments were announced . Security Software was the most active subsegment with 22 transactions announced worth $291 million, followed by ERP Software and Healthcare Software with 11 transactions each worth a combined total of $4.7 billion . Select acquisitions: • Star Investment Holdings and Partners Group’s $4.4 billion acquisition of Healthcare IT Company Multiplan • Synopsys’ $350 million purchase of Coverity, which provides software development solutions enabling developers to analyze code . Select investments: • The Blackstone Group and GIC’s $750 million investment in Kronos, a provider of workforce management solutions
SOFTWARE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM Security 22 25% $291.1 4% 8 $155.0 0 ‐ 14 $136.1 ERP 11 12% 215.8 3% 5 ‐ 2 160.0 4 55.8 Healthcare 11 12% 4,446.9 64% 3 4,400.0 1 ‐ 7 46.9 HR 8 9% 911.7 13% 3 120.0 0 ‐ 5 791.7 Infrastructure 7 8% 20.7 0% 3 ‐ 0 ‐ 4 20.7 Software Development Tools 7 8% 403.3 6% 3 387.0 0 ‐ 4 16.3 Other* 23 26% 646.5 9% 9 336.4 1 100.0 13 210.1 Total 89 100% 6,936.0 100% 34 5,398.4 4 260.0 51 1,277.6 *Other includes Application Management, Collaboration, Data Management, Engineering, Financial, Geo‐Demo, and Legal
30 | M&A and Investment Summary February 2014 Software Public Company Valuation
($ in Millions, except stock price data) Financial & Credit/Risk Management Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Advent Software, Inc. United States $30.95 ‐15% $ 1,588.8 $ 1,859.9 $ 383.0 $ 71.2 18.6% 6.7% 4.9x 26.1x Ebix Inc. United States 16.75 ‐21% 642.1 663.7 207.9 83.9 40.3% 9.8% 3.2x 7.9x Epiq Systems, Inc. United States 14.12 ‐16% 503.4 775.5 438.7 31.1 7.1% 27.2% 1.8x 24.9x Fidessa group plc United Kingdom 41.28 ‐3% 1,554.2 1,431.9 467.5 92.7 19.8% 0.1% 3.1x 15.5x Guidewire Software, Inc. United States 53.97 0% 3,614.9 3,086.2 303.9 3.7 1.2% 25.1% 10.2x NM Innovation Group plc United Kingdom 0.59 ‐2% 588.1 548.9 342.5 43.3 12.6% 5.5% 1.6x 12.7x Management Consulting Group PLC United Kingdom 0.42 ‐22% 209.3 295.8 439.6 37.4 8.5% ‐10.7% 0.7x 7.9x Model N, Inc. * United States 11.68 ‐53% 283.2 180.6 101.1 2.5 2.5% 14.2% 1.8x 71.8x NetSuite Inc. * United States 119.63 ‐1% 8,934.4 8,736.9 414.5 (38.4) NM 34.2% 21.1x NM Performant Financial Corporation United States 7.23 ‐49% 348.2 399.6 255.3 83.5 32.7% 21.5% 1.6x 4.8x RealPage, Inc. United States 17.75 ‐33% 1,392.2 1,357.7 377.0 57.2 15.2% 17.0% 3.6x 23.7x Solera Holdings Inc. United States 68.68 ‐3% 4,737.1 6,135.7 890.1 347.7 39.1% 11.1% 6.9x 17.6x SS&C Technologies Holdings, Inc. United States 38.73 ‐17% 3,288.9 3,978.9 712.7 282.7 39.7% 29.1% 5.6x 14.1x Tyler Technologies, Inc. United States 94.50 ‐12% 3,111.4 3,032.5 416.6 78.8 18.9% 14.7% 7.3x 38.5x
Adjusted Weighted Average 6.1x 21.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (15.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (40.4x)
Healthcare Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accelrys Inc. * United States $12.49 ‐1% $ 695.3 $ 628.4 $ 168.5 $ 4.5 2.7% 3.7% 3.7x 138.3x Allscripts Healthcare Solutions, Inc. * United States 18.55 ‐2% 3,274.8 3,773.3 1,373.1 30.8 2.2% ‐5.1% 2.7x 122.5x athenahealth, Inc. * United States 200.96 ‐3% 7,512.1 7,671.2 595.0 54.8 9.2% 40.9% 12.9x 140.0x Cegedim SA France 38.66 ‐3% 538.7 1,264.7 1,250.8 167.9 13.4% ‐0.8% 1.0x 7.5x Cerner Corporation United States 61.21 ‐3% 21,052.9 20,339.4 2,840.6 744.9 26.2% 8.8% 7.2x 27.3x Computer Programs & Systems Inc. United States 69.44 ‐3% 774.9 752.4 200.9 53.7 26.7% 9.6% 3.7x 14.0x Craneware plc United Kingdom 9.93 ‐7% 268.1 234.7 41.5 11.6 27.9% 0.9% 5.7x 20.3x McKesson Corporation United States 174.43 ‐3% 40,141.1 42,584.1 130,370.0 3,327.0 2.6% 5.8% 0.3x 12.8x MedAssets, Inc. United States 25.06 ‐6% 1,548.7 2,319.5 680.4 206.5 30.3% 6.3% 3.4x 11.2x Medidata Solutions, Inc. * United States 65.16 ‐3% 3,529.8 3,518.4 276.8 31.9 11.5% 26.8% 12.7x 110.4x Merge Healthcare Incorporated United States 2.51 ‐47% 236.2 453.7 231.7 32.1 13.9% ‐6.9% 2.0x 14.1x Quality Systems Inc. United States 17.52 ‐27% 1,054.9 960.9 440.8 72.8 16.5% ‐3.7% 2.2x 13.2x Streamline Health Solutions, Inc. United States 6.43 ‐24% 111.7 127.8 28.7 0.6 2.1% 33.3% 4.4x NM USMD Holdings, Inc. United States 14.08 ‐68% 142.3 180.6 232.0 13.0 5.6% 291.4% 0.8x 13.9x Veeva Systems Inc. * United States 35.85 ‐27% 4,467.2 4,193.8 187.1 38.4 20.5% 0.0% 22.4x 109.1x
Adjusted Weighted Average 4.1x 17.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (17.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (109.0x)
31 | M&A and Investment Summary February 2014 Software Public Company Valuation
($ in Millions, except stock price data) HR Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 51job Inc. China $75.15 ‐13% $ 2,222.3 $ 1,702.4 $ 261.8 $ 84.2 32.2% 11.1% 6.5x 20.2x Allocate Software plc. United Kingdom 1.98 ‐1% 133.5 121.1 64.0 6.5 10.2% 4.4% 1.9x 18.5x Benefitfocus, Inc. United States 66.05 ‐14% 1,615.8 1,538.7 96.7 (18.3) NM 0.0% 15.9x NM Concur Technologies, Inc. * United States 127.99 ‐2% 7,248.2 7,056.9 586.1 36.5 6.2% 26.8% 12.0x 193.3x Cornerstone OnDemand, Inc. United States 60.86 0% 3,213.5 3,124.0 185.1 (25.5) NM 57.0% 16.9x NM Dice Holdings, Inc. United States 7.49 ‐28% 405.7 485.4 213.5 62.7 29.4% 9.3% 2.3x 7.7x LinkedIn Corporation United States 213.77 ‐17% 25,765.9 23,441.6 1,528.5 166.7 10.9% 57.2% 15.3x 140.6x Monster Worldwide, Inc. United States 8.09 ‐1% 777.6 878.8 807.6 112.3 13.9% ‐9.3% 1.1x 7.8x Saba Software, Inc. United States 12.81 ‐8% 381.6 367.4 121.3 (9.8) NM 7.7% 3.0x NM The Ultimate Software Group, Inc. United States 169.00 ‐2% 4,719.7 4,639.2 410.4 59.3 14.4% 23.5% 11.3x 78.3x Workday, Inc. * United States 115.47 ‐1% 20,881.9 19,476.7 468.9 (107.3) NM 71.4% 41.5x NM
Adjusted Weighted Average 13.6x 119.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (34.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (140.9x)
Security Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Absolute Software Corporation Canada $6.32 ‐14% $ 273.5 $ 219.8 $ 86.4 $ 17.6 20.3% 10.3% 2.5x 12.5x AVG Technologies N.V. Netherlands 19.15 ‐28% 1,042.6 1,030.2 407.1 135.0 33.2% 14.4% 2.5x 7.6x Check Point Software Technologies Ltd. Israel 68.08 ‐1% 13,091.8 11,925.0 1,394.1 771.9 55.4% 3.8% 8.6x 15.4x Cisco Systems, Inc. United States 21.92 ‐17% 112,916.1 83,023.1 47,873.0 12,980.0 27.1% 1.3% 1.7x 6.4x FireEye, Inc. * United States 87.03 ‐1% 11,989.1 11,815.2 161.6 (142.9) NM 93.9% 73.1x NM Fortinet Inc. United States 23.86 ‐5% 3,900.2 3,408.8 615.3 87.7 14.3% 15.3% 5.5x 38.9x Gemalto NV Netherlands 112.25 ‐11% 9,667.0 9,292.1 3,257.2 516.6 15.9% 11.9% 2.9x 18.0x Imperva Inc. United States 62.68 ‐2% 1,583.7 1,466.0 137.8 (22.4) NM 32.2% 10.6x NM Infoblox Inc. United States 23.96 ‐51% 1,288.4 1,037.5 245.5 3.1 1.3% 27.6% 4.2x NM Juniper Networks, Inc. United States 27.01 ‐6% 13,535.3 11,688.7 4,669.1 794.9 17.0% 7.0% 2.5x 14.7x NQ Mobile Inc. China 21.21 ‐18% 1,131.8 982.4 158.9 4.8 3.0% 113.0% 6.2x NM Palo Alto Networks, Inc. United States 72.49 ‐9% 5,369.0 4,930.8 482.9 (17.9) NM 49.2% 10.2x NM Proofpoint, Inc. United States 41.61 ‐4% 1,503.8 1,407.3 137.9 (20.2) NM 29.8% 10.2x NM Qihoo 360 Technology Co. Ltd. * China 110.76 ‐1% 13,598.2 13,206.0 552.4 145.9 26.4% 91.5% 23.9x 90.5x Symantec Corporation United States 21.50 ‐21% 14,868.4 13,072.4 6,799.0 1,960.0 28.8% ‐0.6% 1.9x 6.7x Trend Micro Inc. Japan 33.75 ‐18% 4,531.5 3,154.4 1,061.0 359.4 33.9% 15.4% 3.0x 8.8x VeriSign, Inc. United States 55.23 ‐12% 7,382.2 7,033.0 965.1 588.9 61.0% 10.5% 7.3x 11.9x
Adjusted Weighted Average 4.4x 9.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (44.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (45.8x)
32 | M&A and Investment Summary February 2014 Software Public Company Valuation
($ in Millions, except stock price data) Engineering Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Ansys, Inc. United States $83.20 ‐7% $ 7,699.3 $ 6,956.3 $ 861.3 $ 403.5 46.9% 7.9% 8.1x 17.2x Autodesk, Inc. * United States 54.28 ‐7% 12,137.0 10,616.3 2,273.9 426.5 18.8% ‐1.7% 4.7x 24.9x Aveva Group plc United Kingdom 35.69 ‐20% 2,276.5 2,116.0 387.2 114.0 29.4% 10.9% 5.5x 18.6x Dassault Systemes SA France 114.12 ‐20% 14,142.3 12,195.3 2,852.7 889.6 31.2% 1.9% 4.3x 13.7x
Adjusted Weighted Average 5.3x 15.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (9.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (23.3x)
Infrastructure Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adobe Systems Inc. * United States $69.92 0% $ 34,722.6 $ 33,062.8 $ 4,055.2 $ 770.4 19.0% ‐7.9% 8.2x 42.9x CA Technologies United States 33.39 ‐8% 14,951.0 13,868.0 4,582.0 1,566.0 34.2% ‐2.1% 3.0x 8.9x CommVault Systems, Inc. United States 69.52 ‐23% 3,301.9 2,801.3 567.8 103.4 18.2% 20.4% 4.9x 27.1x Covisint Corporation United States 10.63 ‐28% 398.5 343.8 98.4 (27.1) NM 13.9% 3.5x NM Daegis Inc. United States 1.08 ‐35% 17.7 29.0 33.4 3.6 10.8% ‐17.1% 0.9x 8.1x Endurance International Group Holdings, Inc. * United States 15.41 ‐6% 1,922.7 2,923.3 520.3 61.5 11.8% 78.1% 5.6x 47.5x Guidance Software, Inc. United States 10.75 ‐5% 311.8 292.0 110.5 (13.6) NM ‐14.6% 2.6x NM IBM Corporation United States 185.27 ‐14% 192,929.2 221,731.2 99,751.0 25,019.0 25.1% ‐4.6% 2.2x 8.9x Informatica Corporation United States 41.35 ‐6% 4,515.9 3,838.5 948.2 164.1 17.3% 16.8% 4.0x 23.4x IntraLinks Holdings, Inc. United States 11.64 ‐7% 644.3 634.1 234.5 28.6 12.2% 8.2% 2.7x 22.2x NetSuite Inc. * United States 119.63 ‐1% 8,934.4 8,736.9 414.5 (38.4) NM 34.2% 21.1x NM Opera Software ASA Norway 13.32 ‐16% 1,761.7 1,596.1 300.1 82.5 27.5% 38.9% 5.3x 19.3x Oracle Corporation United States 38.95 0% 175,174.1 162,844.1 37,552.0 16,289.0 43.4% 0.9% 4.3x 10.0x Rally Software Development Corp. United States 20.29 ‐39% 495.3 400.5 70.2 (14.7) NM 33.5% 5.7x NM Salesforce.com, Inc United States 66.22 0% 39,930.7 40,966.0 4,071.0 83.3 2.0% 33.5% 10.1x NM ServiceNow, Inc. * United States 70.12 ‐2% 9,728.2 9,508.5 424.7 (42.1) NM 74.2% 22.4x NM Textura Corporation United States 26.55 ‐44% 658.6 583.3 40.8 (33.2) NM 70.1% 14.3x NM TIBCO Software Inc. United States 22.03 ‐19% 3,577.0 3,372.1 1,070.0 193.7 18.1% 4.4% 3.2x 17.4x
Adjusted Weighted Average 4.2x 9.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (19.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (34.9x)
33 | M&A and Investment Summary February 2014 Information & Business Services
. Venture/Growth Capital investments accounted for 73 percent of reported value during the month . IT Consulting/Systems Integration was the most active subsegment with seven transactions announced . Logistics was the highest reported value subsegment with four deals, $2.5 billion of which was from Hopu Funds’ and Bank of China Group’s purchase of a 34 percent stake in Global Logistic Properties . Select acquisitions: • Cinven’s $915 million acquisition of Medpace, a clinical research organization that provides clinical development services for the pharmaceutical and biotechnology markets • Broadridge Financial Solutions’ $60 million purchase of Emerald Connect, which provides marketing programs to the financial services industry • Corporate Resource Services’ purchase of Alar Staffing
INFORMATION & BUSINESS SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM IT Consulting/Systems Integration 7 19% ‐ 0% 7 ‐ 0 ‐ 0 ‐ Staffing 5 14% 10.0 0% 3 10.0 1 ‐ 1 ‐ Logistics 4 11% 2,521.5 71% 0 ‐ 0 ‐ 42,521.5 Printing Services 4 11% 34.0 1% 3 32.9 0 ‐ 11.1 BPO 3 8% ‐ 0% 3 ‐ 0 ‐ 0 ‐ Healthcare Information 3 8% 8.3 0% 2 ‐ 0 ‐ 18.3 Other* 11 30% 974.5 27% 7 13.8 1 915.0 3 45.7 Total 37 100% 3,548.3 100% 25 56.7 2 915.0 10 2,576.6
*Other includes Healthcare Consulting, HR Consulting, HR Information, Corporate Training, Credit/Risk Management Information, Financial Consulting, Financial Information, and Legal Information
34 | M&A and Investment Summary February 2014 Information Services Public Company Valuation
($ in Millions, except stock price data) Financial & Credit/Risk Management Information Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Broadridge Financial Solutions, Inc. United States $37.54 ‐7% $ 4,483.9 $ 4,767.7 $ 2,507.6 $ 499.7 19.9% 7.3% 1.9x 9.5x Computershare Limited Australia 10.70 ‐1% 5,949.5 7,013.1 2,012.1 454.9 22.6% 0.3% 3.5x 15.4x CoreLogic, Inc. United States 32.76 ‐9% 2,990.1 3,683.3 1,330.6 291.1 21.9% ‐ 15.1% 2.8x 12.7x CoStar Group Inc. * United States 203.81 ‐2% 5,880.7 5,777.9 440.9 94.0 21.3% 26.0% 13.1x 61.5x DST Systems Inc. United States 94.99 ‐1% 3,970.6 4,274.8 2,658.6 454.5 17.1% 3.2% 1.6x 9.4x Dun & Bradstreet Corp. United States 98.91 ‐21% 3,774.4 5,021.3 1,655.2 555.8 33.6% ‐0.5% 3.0x 9.0x Envestnet, Inc. * United States 42.20 ‐13% 1,426.4 1,376.4 242.5 21.3 8.8% 54.2% 5.7x 64.6x Equifax Inc. United States 70.02 ‐3% 8,535.4 9,781.8 2,303.9 810.8 35.2% 6.6% 4.2x 12.1x Experian plc Ireland 18.40 ‐15% 17,827.6 21,257.1 4,784.0 1,635.0 34.2% 3.5% 4.4x 13.0x FactSet Research Systems Inc. United States 104.55 ‐12% 4,472.9 4,285.1 870.0 327.0 37.6% 6.0% 4.9x 13.1x Fair Isaac Corporation United States 53.15 ‐16% 1,855.6 2,237.7 737.8 191.1 25.9% 6.0% 3.0x 11.7x Fidelity National Information Services, Inc. United States 56.02 0% 16,309.3 20,387.2 6,070.7 1,835.3 30.2% 4.5% 3.4x 11.1x Financial Engines, Inc. * United States 56.45 ‐21% 2,879.2 2,633.4 239.0 48.9 20.5% 28.6% 11.0x 53.8x McGraw Hill Financial, Inc. United States 79.69 ‐3% 21,596.0 21,688.0 4,875.0 1,749.0 35.9% 9.6% 4.4x 12.4x Moody's Corporation United States 78.89 ‐8% 16,858.8 16,934.3 2,972.5 1,342.3 45.2% 8.9% 5.7x 12.6x Morningstar Inc. United States 82.66 ‐4% 3,719.7 3,421.1 698.3 216.3 31.0% 6.1% 4.9x 15.8x MSCI Inc. United States 43.72 ‐4% 5,102.3 5,626.0 1,035.7 450.7 43.5% 9.0% 5.4x 12.5x Reis, Inc. United States 17.50 ‐11% 190.9 180.6 34.1 7.0 20.6% 15.1% 5.3x 25.8x SEI Investments Co. United States 34.29 ‐4% 5,811.8 5,233.5 1,126.1 271.4 24.1% 13.5% 4.6x 19.3x Thomson Reuters Corporation United States 34.52 ‐9% 28,312.9 34,985.3 12,702.0 2,375.0 18.7% ‐4.3% 2.8x 14.7x The Nasdaq OMX Group, Inc. United States 38.42 ‐6% 6,509.4 8,696.4 3,211.0 928.0 28.9% 2.9% 2.7x 9.4x Verisk Analytics, Inc. United States 63.79 ‐8% 10,642.4 11,748.6 1,595.7 736.0 46.1% 13.3% 7.4x 16.0x
Adjusted Weighted Average 4.1x 13.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (36.6x) ($ in Millions, except stock price data)
Marketing Information Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $37.23 ‐4% $ 2,843.6 $ 2,786.0 $ 1,097.5 $ 182.0 16.6% ‐1.1% 2.5x 15.3x Alliance Data Systems Corporation * United States 285.11 ‐2% 15,160.2 24,399.0 4,319.1 1,281.1 29.7% 18.6% 5.6x 19.0x Brainjuicer Group Plc United Kingdom 7.32 ‐6% 92.0 82.9 35.5 4.3 12.1% ‐3.6% 2.3x 19.3x Cello Group Plc United Kingdom 1.39 ‐11% 115.6 134.7 241.4 13.9 5.8% 11.9% 0.6x 9.7x Cision AB Sweden 8.07 ‐11% 119.8 156.3 128.8 18.8 14.6% ‐15.3% 1.2x 8.3x comScore, Inc. * United States 31.62 ‐5% 1,092.7 1,048.6 286.9 26.3 9.2% 12.4% 3.7x 39.9x Cross Marketing Inc. Japan 12.65 ‐20% 68.1 62.7 61.6 8.5 13.9% 15.5% 1.0x 7.3x Ebiquity plc United Kingdom 2.10 ‐3% 147.5 183.2 111.0 20.2 18.2% 11.5% 1.7x 9.1x GfK SE Germany 58.40 ‐8% 2,131.8 2,723.4 2,081.9 267.5 12.8% 2.4% 1.3x 10.2x Harte‐Hanks Inc. United States 7.99 ‐21% 499.8 524.1 559.6 61.1 10.9% ‐27.1% 0.9x 8.6x InnerWorkings Inc. United States 7.88 ‐50% 404.0 454.2 893.4 18.0 2.0% 12.0% 0.5x 25.2x
35 | M&A and Investment Summary February 2014 Information Services Public Company Valuation
($ in Millions, except stock price data)
Marketing Information (Contd.) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Intage Holdings Inc. Japan 13.39 ‐3% $ 269.3 $ 256.3 $ 398.4 $ 47.6 11.9% 4.6% 0.6x 5.4x Ipsos SA France 43.77 ‐9% 1,982.8 2,879.1 2,364.4 281.7 11.9% ‐4.3% 1.2x 10.2x Macromill, Inc. Japan 7.65 ‐12% 484.7 434.1 176.6 45.1 25.5% 14.2% 2.5x 9.6x NeuStar, Inc. United States 35.77 ‐38% 2,239.9 2,637.1 902.0 387.9 43.0% 8.5% 2.9x 6.8x Nielsen Holdings N.V. Netherlands 46.82 0% 17,738.5 23,902.5 5,703.0 1,349.0 23.7% 5.5% 4.2x 17.7x Onvia Inc. United States 5.24 ‐6% 38.5 31.0 22.0 2.5 11.3% 0.3% 1.4x 12.5x Pearson plc United Kingdom 18.03 ‐22% 14,583.2 18,150.3 8,492.9 1,194.6 14.1% 0.2% 2.1x 15.2x Rentrak Corporation * United States 64.45 ‐7% 780.0 754.1 118.4 14.5 12.2% 24.3% 6.4x 52.0x YouGov PLC United Kingdom 1.81 ‐2% 177.9 166.8 104.8 7.5 7.2% 7.6% 1.6x 22.2x
Adjusted Weighted Average 2.9x 16.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (27.9x)
Other Information Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Centaur Media plc United Kingdom $1.27 ‐1% $ 179.9 $ 224.9 $ 124.5 $ 16.4 13.2% 7.1% 1.8x 13.7x Corporate Executive Board Co. United States 74.32 ‐8% 2,497.9 2,894.2 820.1 184.9 22.5% 31.7% 3.5x 15.7x Forrester Research Inc. United States 36.25 ‐12% 716.0 558.4 297.7 35.2 11.8% 1.6% 1.9x 15.8x Gartner Inc. United States 69.45 ‐3% 6,401.7 6,239.5 1,784.2 309.8 17.4% 10.4% 3.5x 20.1x IHS Inc. United States 119.33 ‐4% 8,120.8 10,040.4 1,840.6 388.5 21.1% 20.3% 5.5x 25.8x Informa plc Switzerland 8.66 ‐10% 5,231.1 6,543.3 1,897.3 616.6 32.5% ‐8.1% 3.4x 10.6x National Research Corp. United States 39.89 ‐14% 492.8 472.9 92.6 28.5 30.8% 7.1% 5.1x 16.6x NIC Inc. United States 19.59 ‐25% 1,274.0 1,199.8 249.3 66.0 26.5% 18.1% 4.8x 18.2x Premier, Inc. United States 33.76 ‐13% 1,093.0 897.5 808.8 308.7 38.2% 0.0% 1.1x 2.9x Proofpoint, Inc. * United States 41.61 ‐4% 1,503.8 1,407.3 137.9 (20.2) NM 29.8% 10.2x NM Reed Elsevier plc(1) United Kingdom 15.47 ‐2% 33,605.3 40,544.7 9,944.2 3,154.3 31.7% 6.6% 4.1x 12.9x Solera Holdings Inc. United States 68.68 ‐3% 4,737.1 6,135.7 890.1 347.7 39.1% 11.1% 6.9x 17.6x Tarsus Group plc Ireland 3.60 ‐16% 364.5 420.3 97.8 29.6 30.3% ‐5.2% 4.3x 14.2x TechTarget, Inc. * United States 7.00 ‐6% 222.1 179.9 88.5 3.6 4.1% ‐11.5% 2.0x 49.6x The Advisory Board Company * United States 63.99 ‐9% 2,312.7 2,258.8 502.3 60.7 12.1% 16.4% 4.5x 37.2x UBM plc United Kingdom 11.73 ‐8% 2,847.4 3,692.3 1,326.5 307.1 23.2% 12.2% 2.8x 12.0x Wolters Kluwer NV Netherlands 28.75 ‐6% 8,491.0 11,240.1 4,922.3 1,231.6 25.0% ‐1.1% 2.3x 9.1x
Adjusted Weighted Average 4.0x 14.7x
(1) All financials are representative of the Reed Elsevier combined businesses, except per stock data, which represents Reed Elsevier (LSE:REL) *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (29.5x)
36 | M&A and Investment Summary February 2014 Business Services Public Company Valuation
($ in Millions, except stock price data)
Consulting Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CRA International Inc. United States 23.08 ‐2% 234.6 183.4 278.4 25.0 9.0% 3.0% 0.7x 7.3x FTI Consulting, Inc. United States 29.50 ‐37% 1,198.8 1,706.7 1,652.4 242.5 14.7% 4.8% 1.0x 7.0x Information Services Group, Inc. * United States 5.20 ‐9% 192.9 228.5 207.1 18.2 8.8% 10.2% 1.1x 12.5x Navigant Consulting Inc. United States 17.12 ‐13% 840.2 895.2 734.4 123.5 16.8% 1.7% 1.2x 7.2x ICF International Inc. United States 41.11 ‐7% 812.5 843.6 949.3 85.4 9.0% 1.3% 0.9x 9.9x Huron Consulting Group Inc. United States 66.75 ‐5% 1,487.1 1,597.8 720.5 138.4 19.2% 15.1% 2.2x 11.5x The Hackett Group, Inc. United States 5.90 ‐21% 181.1 181.9 200.4 18.3 9.1% ‐4.2% 0.9x 9.9x Towers Watson & Co. United States 107.25 ‐19% 7,564.0 7,598.5 3,590.6 653.9 18.2% 4.6% 2.1x 11.6x
Adjusted Weighted Average 1.8x 10.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (12.2x)
HR Services Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Automatic Data Processing, Inc. United States 77.72 ‐7% 37,447.5 36,171.2 11,747.3 2,438.9 20.8% 7.6% 3.1x 14.8x Barrett Business Services Inc. United States 70.56 ‐31% 505.6 397.5 532.8 26.4 5.0% 32.3% 0.7x 15.1x Capita plc United Kingdom 19.40 0% 12,738.5 15,603.2 6,527.9 868.2 13.3% 16.2% 2.4x 18.0x Dice Holdings, Inc. United States 7.49 ‐28% 405.7 485.4 213.5 62.7 29.4% 9.3% 2.3x 7.7x Edenred SA France 31.95 ‐15% 7,217.5 7,644.1 1,311.7 408.7 31.2% ‐2.7% 5.8x 18.7x Insperity, Inc. United States 29.01 ‐27% 739.9 467.8 2,256.1 77.0 3.4% 4.5% 0.2x 6.1x LinkedIn Corporation * United States 213.77 ‐17% 25,765.9 23,441.6 1,528.5 166.7 10.9% 57.2% 15.3x 140.6x Marsh & McLennan Companies, Inc. United States 48.01 ‐2% 26,327.4 26,979.4 12,261.0 2,431.7 19.8% 2.8% 2.2x 11.1x Monster Worldwide, Inc. United States 8.09 ‐1% 777.6 878.8 807.6 112.3 13.9% ‐9.3% 1.1x 7.8x Paychex, Inc. United States 41.55 ‐10% 15,133.0 14,669.6 2,397.0 1,040.8 43.4% 5.7% 6.1x 14.1x Professional Diversity Network LLC United States 3.14 ‐62% 19.8 0.0 4.3 (0.7) NM ‐30.1% 0.0x NM Towers Watson & Co. United States 107.25 ‐19% 7,564.0 7,598.5 3,590.6 653.9 18.2% 4.6% 2.1x 11.6x WageWorks, Inc. United States 59.46 ‐13% 2,069.9 1,739.4 219.3 41.6 19.0% 23.7% 7.9x 41.8x
Adjusted Weighted Average 3.4x 14.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (12.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (63.0x)
37 | M&A and Investment Summary February 2014 Business Services Public Company Valuation
($ in Millions, except stock price data)
IT Consulting/Systems Integration Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accenture plc Ireland 83.36 ‐3% $ 53,099.5 $ 49,084.1 $ 28,701.6 $ 4,421.0 15.4% 2.5% 1.7x 11.1x Amdocs Limited Channel Islands 44.39 ‐1% 7,085.4 5,873.9 3,383.5 626.8 18.5% 3.6% 1.7x 9.4x Bechtle AG Germany 79.09 ‐5% 1,660.9 1,647.4 3,042.5 148.1 4.9% 6.5% 0.5x 11.1x Booz Allen Hamilton Holding Corporation United States 20.83 ‐6% 3,009.8 4,281.1 5,624.2 562.4 10.0% ‐2.2% 0.8x 7.6x Broadridge Financial Solutions, Inc. United States 37.54 ‐7% 4,483.9 4,767.7 2,507.6 499.7 19.9% 7.3% 1.9x 9.5x Business & Decision SA France 6.19 ‐7% 48.8 94.5 288.1 19.7 6.8% ‐13.0% 0.3x 4.8x Cap Gemini S.A. France 77.63 ‐3% 12,319.8 11,538.3 13,934.4 1,375.2 9.9% ‐1.7% 0.8x 8.4x CGI Group, Inc. Canada 33.04 ‐12% 10,167.1 12,819.7 9,200.0 1,331.1 14.5% 62.5% 1.4x 9.6x Cognizant Technology Solutions Corporation * United States 103.20 ‐2% 31,343.1 27,595.6 8,843.2 1,857.8 21.0% 20.4% 3.1x 14.9x Computer Sciences Corporation United States 63.27 ‐1% 9,217.9 9,781.9 13,970.0 2,169.5 15.5% ‐3.8% 0.7x 4.5x CSG Systems International Inc. United States 27.72 ‐14% 938.0 992.2 747.5 143.1 19.2% ‐1.2% 1.3x 6.9x Digi International Inc. United States 9.81 ‐23% 253.9 156.0 195.7 16.8 8.6% 2.5% 0.8x 9.3x Information Services Group, Inc. United States 5.20 ‐9% 192.9 228.5 207.1 18.2 8.8% 10.2% 1.1x 12.5x International Business Machines Corporation United States 185.27 ‐14% 192,929.2 221,731.2 99,751.0 25,019.0 25.1% ‐4.6% 2.2x 8.9x Infosys Ltd. * India 61.57 ‐1% 35,181.8 30,942.7 8,095.0 2,140.0 26.4% 11.9% 3.8x 14.5x iSoftStone Holdings Limited * China 5.09 ‐11% 296.5 377.2 418.1 26.2 6.3% 15.2% 0.9x 14.4x ITS Group France 8.41 ‐1% 48.4 57.7 124.5 9.3 7.4% ‐3.9% 0.5x 6.2x NCI, Inc. United States 11.75 ‐10% 151.9 152.8 332.3 19.5 5.9% ‐9.8% 0.5x 7.8x NTT Data Corporation Japan 41.73 ‐1% 11,705.2 14,132.3 13,053.9 1,923.9 14.7% 4.6% 1.1x 7.3x Perficient Inc. * United States 20.67 ‐14% 682.7 693.3 343.5 42.7 12.4% 15.2% 2.0x 16.2x Tata Consultancy Services Limited * India 35.33 ‐8% 69,192.7 67,388.3 12,413.1 3,759.6 30.3% 28.2% 5.4x 17.9x Wipro Ltd. * India 9.77 ‐1% 23,918.5 21,911.2 6,675.3 1,431.7 21.4% 27.8% 3.3x 15.3x
Adjusted Weighted Average 2.3x 9.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.2x) ($ in Millions, except stock price data)
Outsourced Services Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMREP Corporation * United States $7.40 ‐41% $ 53.2 $ 51.3 $ 85.3 $ 0.2 0.2% 4.9% 0.6x 254.2x Cenveo Inc. United States 3.39 ‐14% 224.9 1,399.1 1,777.8 145.0 8.2% 2.3% 0.8x 9.6x Communisis plc United Kingdom 1.19 ‐5% 230.7 252.3 399.5 33.9 8.5% 6.9% 0.6x 7.5x Cineplex Inc. Canada 36.99 ‐9% 2,328.2 2,590.4 1,056.8 176.1 16.7% 7.2% 2.5x 14.7x Contax Participacoes S.A. Brazil 1.53 ‐36% 644.4 997.0 1,550.2 187.3 12.1% ‐0.1% 0.6x 5.3x Convergys Corporation United States 20.47 ‐16% 2,062.9 1,460.3 2,046.1 237.8 11.6% 2.0% 0.7x 6.1x Elanders AB Sweden 7.00 ‐10% 159.2 274.4 326.9 35.7 10.9% 8.9% 0.8x 7.7x Eniro AB Sweden 10.21 ‐1% 1,023.2 1,416.5 570.8 132.4 23.2% ‐8.5% 2.5x 10.7x Exlservice Holdings, Inc. United States 27.99 ‐15% 921.8 786.0 472.0 86.2 18.3% 10.3% 1.7x 9.1x Firstsource Solutions Limited India 0.45 ‐5% 299.6 445.5 487.0 56.9 11.7% 9.2% 0.9x 7.8x Genpact Limited Bermuda 16.68 ‐22% 3,865.0 3,957.0 2,132.0 384.0 18.0% 12.1% 1.9x 10.3x InnerWorkings Inc. * United States 7.88 ‐50% 404.0 454.2 893.4 18.0 2.0% 12.0% 0.5x 25.2x
38 | M&A and Investment Summary February 2014 Business Services Public Company Valuation
($ in Millions, except stock price data)
Outsourced Services (Contd.) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/02/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Luxoft Holding, Inc. * British Virgin Islands 38.74 ‐11% $ 1,269.1 $ 1,254.7 $ 378.0 $ 68.4 18.1% 25.5% 3.3x 18.3x MAXIMUS, Inc. United States 48.78 ‐4% 3,310.0 3,190.8 1,451.6 240.4 16.6% 32.3% 2.2x 13.3x Quad/Graphics, Inc. United States 23.50 ‐36% 1,128.3 2,538.7 4,795.9 578.0 12.1% 17.1% 0.5x 4.4x Quintiles Transnational Holdings Inc. United States 53.50 ‐3% 6,950.8 8,243.4 3,808.3 557.0 14.6% 3.1% 2.2x 14.8x R.R. Donnelley & Sons Company United States 19.04 ‐10% 3,765.9 6,617.3 10,480.3 1,116.5 10.7% 2.5% 0.6x 5.9x Salmat Limited Australia 1.84 ‐25% 291.3 231.5 407.8 30.2 7.4% ‐43.1% 0.6x 7.7x Serco Group plc United Kingdom 6.88 ‐40% 3,363.5 4,632.0 8,579.7 659.5 7.7% 18.9% 0.5x 7.0x St Ives plc United Kingdom 3.23 ‐4% 390.7 415.3 540.6 55.5 10.3% ‐2.1% 0.8x 7.5x StarTek, Inc. United States 6.95 ‐4% 106.3 95.3 231.3 8.0 3.5% 16.7% 0.4x 11.9x Sykes Enterprises, Incorporated United States 19.86 ‐15% 871.4 757.4 1,263.5 114.1 9.0% 12.0% 0.6x 6.6x Teleperformance France 61.96 ‐2% 3,472.2 3,336.9 3,359.3 422.5 12.6% 3.7% 1.0x 7.9x TeleTech Holdings Inc. United States 24.41 ‐10% 1,230.8 1,075.3 1,193.2 151.4 12.7% 2.6% 0.9x 7.1x Trans Cosmos, Inc. Japan 21.80 ‐6% 896.7 659.8 1,746.2 103.2 5.9% 7.6% 0.4x 6.4x Transcom WorldWide SA Luxembourg 0.19 ‐18% 238.9 288.7 901.9 36.9 4.1% 7.9% 0.3x 7.8x Transcontinental Inc. Canada 13.53 ‐13% 1,053.6 1,427.2 1,903.9 338.4 17.8% ‐0.1% 0.7x 4.2x Vistaprint N.V. Netherlands 50.08 ‐14% 1,664.1 1,806.3 1,213.6 137.8 11.4% 9.6% 1.5x 13.1x West Corporation United States 24.95 ‐26% 2,091.7 5,387.0 2,685.9 662.6 24.7% 1.8% 2.0x 8.1x Xchanging PLC United Kingdom 2.96 ‐7% 716.2 551.3 1,149.2 170.9 14.9% 2.6% 0.5x 3.2x
Adjusted Weighted Average 1.6x 3.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (1.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (29.7x)
39 | M&A and Investment Summary February 2014 PPLLC Indices Valuation Summary
Revenue Multiples Public Company Index MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 7.0x 2.3x 9.0x 8.9x Digital Advertising 4.7x 2.4x 6.8x 6.3x Marketing Technology 6.2x 4.0x 4.7x 4.3x Agency 1.1x 1.1x 1.5x 1.5x Marketing Services 1.7x 1.8x 3.0x 2.0x Traditional Media 2.9x 2.5x 3.3x 3.2x Technology 3.7x 2.5x 4.1x 3.8x Communications 2.5x 1.7x 2.3x 2.0x Software 7.7x 4.4x 7.1x 5.5x Information 3.8x 3.5x 4.4x 4.1x Business Services 1.5x 0.8x 3.1x 2.1x
EBITDA Multiples Public Company Index MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 32.9x 16.1x 31.5x 27.7x Digital Advertising 26.5x 19.8x 22.7x 21.7x Marketing Technology 38.4x 17.2x 13.9x 13.6x Agency 12.3x 10.0x 11.2x 11.1x Marketing Services 16.9x 9.0x 12.7x 12.3x Traditional Media 12.5x 10.4x 11.4x 11.4x Technology 19.0x 11.0x 12.3x 12.3x Communications 50.1x 15.5x 16.8x 11.6x Software 34.4x 17.4x 19.8x 12.8x Information 18.2x 13.1x 16.3x 14.2x Business Services 14.0x 9.9x 20.8x 12.7x
As of close of business on 02/28/14
*Calculation is market cap weighted and excludes revenue multiples that are 3 standard deviations above the mean and EBITDA multiples that are 2 standard deviations above the mean 40 | M&A and Investment Summary February 2014 PPLLC Indices LTM Share Pricing Trends
Digital Media/Commerce and Traditional Media Digital Advertising 170 LTM Index Performance 170 LTM Index Performance
155 155 (%) (%) • S&P 500 – 22.9% • S&P 500 – 22.9%
140 140 • Digital Media/Commerce – • Digital Advertising – 61.6% 125 61.6% 125 Performance Performance
110 110 • Traditional Media – 36.9% Index 95 Index 95
80 80 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14
S&P 500 Digital Media/Commerce Traditional Media S&P 500 Digital Advertising
Marketing Technology Agency & Marketing Services 130 LTM Index Performance 155 LTM Index Performance
120
• S&P 500 – 22.9% % (%) 140 • S&P 500 – 22.9% (%)
110 • Marketing Technology – 5.1% 125 • Agency – 39.3%
100 110
Performance • Marketing Services – 40.1%
Performance
90 95 Index Index
80 80 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14
S&P 500 Marketing Technology S&P 500 Agency Marketing Services
Note: LTM as of 2/28/14 41 | M&A and Investment Summary February 2014 PPLLC Indices LTM Share Pricing Trends
Technology Communications 130 LTM Index Performance 140 LTM Index Performance
120 130
(%) • •
S&P 500 – 22.9% (%) S&P 500 – 22.9%
120 110 • Technology – 22.6% • Communications – 19.6% 110 100 Performance Performance
100
90
Index 90 Index
80 80 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14
S&P 500 Technology S&P 500 Communications
Software Information & Business Services 130 LTM Index Performance 150 LTM Index Performance
120 • S&P 500 – 22.9% 140 • S&P 500 – 22.9 % (%)
(%) 130 110 • Software – 16.2% • Information – 26.5% 120 100 • Business Services – 11.6% Performance 110 Performance
90 Index 100 Index 80 90 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14 Feb‐13 Apr‐13 Jun‐13 Aug‐13 Oct‐13 Dec‐13 Feb‐14
S&P 500 Software S&P 500 Information Business Services
Note: LTM as of 2/28/14 42 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Values Disclosed Time Warner Ca bl e Inc. Traditional Media Comca st Corporation$ 45,000.2 WhatsApp, Inc. Digital Media/Commerce Facebook 19,000.0 MultiPlan, Inc. Software Partners Group AG 4,400.0 Zale Corporation Digital Media/Commerce Signet Jewelers Ltd 1,234.0 Viber Media , Inc. Digital Media/Commerce Rakuten, Inc. 900.0 Eddie Bauer Holdings, Inc. Digital Media/Commerce Joseph A. Bank Cl othi ers , Inc. 825.0 Blue Ka i, Inc. Marketing Technology Oracle Corporation 400.0 Coa s ta l Conta cts , Inc. Digital Media/Commerce Essilor International SA 385.7 Coveri ty, Inc. Software Synopsys, Inc 350.0 Hercules Tire & Rubber Company Digital Advertising American Tire Distributors, Inc. 321.5 Third Coa s t Holdings Software Wolters Kluwer Corpora te Legal Services 180.0 BASH Gaming Digital Media/Commerce Game Show Network 160.0 Transics International Software WABCO Europe BVBA 156.4 Interthinx Software First American Financial Corporation 155.0 Lefeng.com Digital Media/Commerce Vipshop 132.0 WBLS 107.5, WLIB 1190 AM Traditional Media Emmis Communications 131.0 Bright Software LinkedIn Corporation 120.0 Simple Finance Technology Corporation Technology & Communications BBVA 117.0 WMYD, WKBW Traditional Media The E.W. Scripps Company 110.0 Pozitron Marketing Technology Monitise plc 100.0 Veveo, Inc. Marketing Technology Rovi Corporation 69.0 Express Data Holdings Pty Ltd. Technology & Communications Dicker Data Limited 65.5 Rock in Rio Traditional Media SFX Entertainment, Inc. 62.3 Emerald Connect, Inc. Information & Business Services Broadridge Financial Solutions, Inc. 60.0 Skyfence Networks, Inc. Technology & Communications Imperva, Inc. 60.0 Trace Partners SAS Traditional Media Modern Times Group MTG AB 55.0 Kingsdale Shareholder Services Agency & Ma rketing Services MDC Partners, Inc. 50.0 ForwardThink Group, Inc. Technology & Communications Perficient, Inc. 46.0 DAX Technologies Corp. Software Spirent Communications plc 37.0 People & Print Group B.V. Information & Business Services VistaPrint USA, Inc. 32.9 Tedemis Digital Advertising Criteo 29.0 SET Media , Inc. Digital Advertising Conversant, Inc. 26.0 Ness Computi ng, Inc. Marketing Technology OpenTable.com, Inc. 17.0 Xora, Inc. Technology & Communications ClickSoftware Technologies Ltd. 14.7 Blink Technologies, Inc. Marketing Technology ePunk, Inc. 14.4 Equipos Ltd. Information & Business Services SimCorp A/S 13.8 Wander Digital Media/Commerce Yahoo!, Inc. 10.0 Staff Management Group Information & Business Services Diamond Staffing Services, Inc. 10.0 V3 Systems, Inc. Technology & Communications Sphere 3D Corpora ti on 9.7 GetJar, Inc. Marketing Technology Sungy Mobile Limited 5.3 ODigMa Agency & Ma rketing Services Infibeam 5.0 Technolab Marketing Technology The Hackett Group, Inc. 4.0 Stray Angel Films Traditional Media Ubiquity Broadcasting Corpora ti on 3.0 43 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Values Disclosed LeadRocket Marketing Technology Callidus Software, Inc.$ 3.0 Budget Travel Maga zine Tra ditional Media Lonely Planet Publications 2.4 brandsExclusive Digital Media/Commerce AussieCommerce 2.0 Reader's Digest UK Traditional Media Mike Luckwell 1.7 Strutta Media, Inc. Marketing Technology LX Ventures, Inc. 1.7 Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Aeria Games & Entertainment, Inc. Digital Media/Commerce ProSiebenSat.1 Media AG ‐ Tangled Tut Digital Media/Commerce 3D Pioneer Systems ‐ Hulu Japan Digital Advertising Nippon Television Network ‐ Travelocity Partner Network Agency & Ma rketing Services Orbitz Worldwide, Inc. ‐ Maxim Ma gazine, Inc. Traditional Media Biglari Holdings ‐ Discovery Solutions Information & Business Servi ces CoAdva nta ge ‐ Compens a ti on Solutions Information & Business Servi ces CoAdva nta ge ‐ Ci ty Delivery Digital Media/Commerce Food Runner ‐ eCoffeeCard Digital Media/Commerce Bea t the Q Pty Ltd. ‐ FilmChrome Digital Advertising Esquire Technologies Pty Ltd. ‐ Fueled Chicago Digital Advertising AKTA ‐ Percolate Industries, Inc. Marketing Technology WPP Digital ‐ Nexium Cus tomer Solutions Agency & Ma rketing Services Nielsen Holdings B.V. ‐ New Directions Search, Inc. Information & Business Services ZRG Partners, Inc. ‐ Identified, Inc. Technology & Communications Workday, Inc. ‐ MultiCorpora Software R.R. Donnelley & Sons Compa ny ‐ 3D CIOs , LLC Marketing Technology Innovative Computer Systems, Inc. ‐ Yumprint Digital Media/Commerce Wal‐Mart Stores, Inc. ‐ SocialVest Ventures, LLC Agency & Ma rketing Services PlanG Holdings, Inc. ‐ Winans Creati ve, LLC Agency & Ma rketing Services HB Agency ‐ The Thorburn Group Agency & Ma rketing Services Stamats Communications, Inc. ‐ LVM Group Agency & Ma rketing Services Did‐it.com ‐ BookFresh Software Square, Inc. ‐ Veloxum Corporation Software AmbiCom Holdings, Inc. ‐ Topify, Inc. Digital Media/Commerce Versatile Solutions ‐ Noteflight LLC Digital Media/Commerce Ha l Leonard Corpora ti on ‐ JAZD Markets, Inc. Digital Advertising Questex Media Group ‐ HMKM Limited Agency & Ma rketing Services Interbrand Corpora ti on ‐ Lighthouse Digital LLC Agency & Ma rketing Services Publicis Groupe S.A. ‐ CAA Sports Agency & Ma rketing Services Inside Sports & Entertainment Group ‐ Lemon Sky Agency & Ma rketing Services JWT ‐ StopTheHacker Software CloudFlare ‐ Sofica Group Information & Business Services TeleTech Holdings, Inc. ‐
44 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Booklr Marketing Technology Vook, Inc. ‐ eReputationBuilder Marketing Technology Dealer Authority ‐ GetTVG Marketing Technology Xumanii International ‐ Burstly Digital Advertising Apple Inc. ‐ GRASP Systems Marketing Technology Infor Global Solutions, Inc. ‐ Daily Deal Builder Marketing Technology DiscountCoupons.com ‐ Martino & Binzer, Inc. Agency & Ma rketing Services BlueSpire Strategic Marketing ‐ 22Feet Communications Pvt. Ltd. Agency & Ma rketing Services DDB Mudra Group ‐ Cl ouda nt, Inc. Technology & Communications International Business Machines Corpora ti on ‐ BoxTone, Inc. Technology & Communications Good Technology, Inc. ‐ C‐SAM, Inc. Technology & Communications MasterCard, Inc. ‐ FTAPI Software GmbH Software QSC AG ‐ The Online Journal of Nursing Informatics Information & Business Services Healthcare Information and Ma nagement Syste m ‐ TalentBin Information & Business Services Monster Worldwide, Inc. ‐ Gozaik LLC Information & Business Services Monster Worldwide, Inc. ‐ iSearch Media, Inc. Marketing Technology 3Q Digital ‐ Espion International, Inc. Software VersAi, Inc. ‐ Spider.io Software Google, Inc. ‐ Treo Solutions Information & Business Services 3M Compa ny ‐ Citessentials Digital Advertising Impact Telecom ‐ HYDRANT Agency & Ma rketing Services Cibo Global, LLC ‐ SolutionIQ, LLC Agency & Ma rketing Services Illuminati Studios ‐ PublishNext, Seattle Book Company Traditional Media Thomson‐Shore, Inc. ‐ DiGa Vision Traditional Media ITV plc ‐ Findwise Search Center Technology & Communications Meltwater Group ‐ AppSlingr, Inc. Software OTOY, Inc. ‐ PhiSix Fashion Labs Software eBay Incorporated ‐ Audax Health Solutions Software Optum Inc. ‐ Allied Technology Group Software ManTech International Corpora ti on ‐ Digital PlaySpace, Inc. Digital Media/Commerce 3D Systems Corpora ti on ‐ Digital Scout Digital Media/Commerce 2080 Media ‐ Join Sessions, Inc. Digital Media/Commerce MyFitness Pal, LLC ‐ alivenotdead.com Digital Media/Commerce mig33 ‐ Mobi Girl Media Digital Advertising SuperAwesome Limited ‐ Dachis Group Marketing Technology Sprinklr ‐ Connexi ty LLC Agency & Ma rketing Services Shopzilla, Inc. ‐ Bellefield Systems, LLC Technology & Communications AIRTIME‐Ma nager Client Base ‐ 45 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Skyhook Wireless, Inc. Technology & Communications TruePosition, Inc. ‐ Teracue AG Technology & Communications eyevis GmbH ‐ A&N Associates, Inc. Information & Business Services Tangible Security, Inc. ‐ Cognicient Limited Marketing Technology Blueocean Market Intelligence Services Private L i ‐ Counterpoint Systems Ltd. Marketing Technology Vistex, Inc. ‐ Barnum Design, LLC Agency & Ma rketing Services Wasabi Rabbit, Inc. ‐ uReach Technologies, Inc. Technology & Communications GENBAND ‐ Retain International Ltd. Software Capita Group plc ‐ SlickLogin Software Google, Inc. ‐ Avaya Government Solutions IT Consulting Services Information & Business Services Camber Corpora ti on ‐ Foliage Software Systems Information & Business Services Altran Technologies SA ‐ Mokum Cha nge Management Ltd. Information & Business Services PricewaterhouseCoopers LLP ‐ Roll Mobile Digital Advertising Ascedia, Inc. ‐ Capablue Marketing Technology Arqiva ‐ Audio Visual Management Group, Inc. Agency & Ma rketing Services Freeman Compa ny ‐ Windfall Films Ltd. Traditional Media Argonon Ltd. ‐ Distill, Inc. Software Yahoo!, Inc. ‐ Cerna m Ltd. Software Daybreak Information Technologies ‐ Alar Staffing Information & Business Services Corporate Resource Services, Inc. ‐ Talent Neuron Marketing Technology The Corpora te Executive Board ‐ eChiron Marketing Technology Claranet Limited ‐ Brand Social Agency & Ma rketing Services Javelin Group ‐ Advantage Business Media Tra ditional Media Owner Resource Group, LLC ‐ Bookt Software RealPage, Inc. ‐ FinallySecure Software EgoSecure GmbH ‐ Ca rbon Black, Inc. Software Bit9, Inc. ‐ ReachLogic Media, LLC Digital Advertising A6 Corpora ti on ‐ Simplytics Ltd. Digital Advertising Integral Ad Science, Inc. ‐ Spire LLC Marketing Technology DataLogix, Inc. ‐ Mobitech Ma rketing Technology MiX Telematics International ‐ Altruik, Inc. Marketing Technology SearchDex, Inc. ‐ Dakota‐Diesel, Inc. Agency & Ma rketing Services DMW Direct ‐ Anderson Daymon Worldwide Agency & Ma rketing Services Acosta Sales & Marketing, Inc. ‐ Talpa Music B.V. Traditional Media BMG Rights Management GmbH ‐ WALLMOB A/S (PLC) Technology & Communications Visma AS ‐ OnPoint Consulting, Inc. Software Sapient Government Services, Inc. ‐ Rastar, Inc. Information & Business Services Digibell, Inc. ‐ 46 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed E‐Reads, Ltd. Digital Media/Commerce OpenRoad Media, LLC ‐ Lensbase.co.uk Digital Media/Commerce GetLenses.co.uk ‐ YOU Technology, Inc. Digital Advertising Kroger Compa ny ‐ Swishu, LLC Marketing Technology Tinypass, Inc. ‐ Musicfellas Marketing Technology Gaana.com ‐ Verawom Agency & Ma rketing Services Isobar Communications ‐ Vision Direct, Inc. Digital Media/Commerce GetLenses.co.uk ‐ Impact Future Media , Impact Interactive Assets Traditional Media Malwin Ventures, Inc. ‐ Eyeworks Group Traditional Media Warner Brothers Entertainment, Inc. ‐ FaxMate Technology & Communications j2 Global Communications, Inc. ‐ Ozefax Technology & Communications j2 Global Communications, Inc. ‐ ViewTrust Technology, Inc. Software Virtustream, Inc. ‐ Maxwell Systems, Inc. Software Viewpoint Construction Software, Inc. ‐ Learn Maintenance, Inc. Information & Business Services Advanced Technology Services ‐ Prepaid Wireless Digital Media/Commerce AccountNow, Inc. ‐ Babblebug.com Digital Media/Commerce AccountNow, Inc. ‐ MagCorp Ma rketing Technology Shopgate GmbH ‐ Livedrive Internet Ltd. Technology & Communications j2 Global Communications, Inc. ‐ IND Group Technology & Communications Misys plc ‐ Engrade, Inc. Software McGraw‐Hill Education, Inc. ‐ Business Computer Applications, Inc. Software Acentia, LLC ‐ RealTargeting Software DoubleVerify, Inc. ‐ Betterfly, Inc. Digital Advertising TakeLessons ‐ Incapsula, Inc. Technology & Communications Imperva, Inc. ‐ Tracker Network Ltd. Software Lysanda Limited ‐ Voxox, Inc. Technology & Communications PokeTALK ‐ Double Helix Games LLC Digital Media/Commerce Amazon.com, Inc. ‐ ProScribe Digital Medi a /Commerce Envi s i on Pharma Group ‐ Mobi Targets Digital Advertising adQuota ‐ Buy4Now, Inc. Marketing Technology MyWebGrocer, LLC ‐ Azuki Systems, Inc. Marketing Technology Ericsson, Inc. ‐ Computer Guidance Corporation Software Explorer Software, Inc. ‐ Business Computer Design, ExcelSystems Software Development Software Quadrant Software LLC ‐ Ca l eri s , Inc. Information & Business Services INS ‐ UniGraphic, Inc. Information & Business Services Quad/Graphics, Inc. ‐ Centra l do Delivery Digital Media/Commerce iFood ‐
47 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Buyout Transactions
Target Target Segment Buyer/Investor Reported TV Buyout Deals Values Disclosed Medpace, Inc. Information & Business Servi ces CCMP Ca pi ta l Advisors, LLC$ 915.0 Cha ngepoi nt, Uniface, CW Profess ional Services Software Marlin Equity Partners 160.0 CollabNet, Inc. Software Vector Ca pi ta l Corporation 100.0 Buyout Deals Undisclosed The Delta Companies Information & Business Services Mitsui & Compa ny, Ltd. ‐ AFS Technologies, Inc. Software Court Square Ca pi ta l Partners ‐ Callcredit Information Group Ltd. Agency & Ma rketing Services GTCR, LLC ‐ Women's Ma rketing, Inc. Agency & Ma rketing Services PNC RiverArch Ca pi ta l ‐ General Tools & Instruments LLC Digital Media/Commerce High Road Capi tal Partners ‐ Global Healthcare Exchange, LLC Software Thoma Bravo, Inc. ‐
48 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Global Logistic Properties, Inc. Information & Business Services Bank of Chi na Group Investment$ 2,500.0 Kronos Incorporated Software The Blackstone Group 750.0 Dropbox Technology & Communications BlackRock, Inc. 350.0 SnapDeal.com Digital Advertising eBay Incorporated 133.7 Domo, Inc. Marketing Technology TPG Growth 125.0 TutorGroup Ma rketing Technology Alibaba Group 100.0 17u.cn Digital Media/Commerce Tencent Holdings Ltd. 82.0 Tradeshift Software Scentan Ventures 75.0 Tintri, Inc. Technology & Communications Insight Venture Partners 75.0 Spiceworks, Inc. Digital Media/Commerce Ada ms Street Partners, LLC 57.6 ClearSlide, Inc. Marketing Technology Social and Ca pi ta l Partnership 50.0 MINDBODY, Inc. Marketing Technology W Capi tal Partners 50.0 Cheyi pa i Di gi ta l Media/Commerce Sequoia Capital 50.0 Kaltura, Inc. Digital Advertising SAP Ventures 47.0 Intacct Corporation Software Battery Ventures 45.0 Elementum SCM Software Lightspeed Venture Partners 44.0 eCommera Limited Marketing Technology Dawn Capital 41.0 Shape Security, Inc. Softwa re Norwest Venture Partners 40.0 AtTask, Inc. Marketing Technology JMI Equity 38.0 Voalte, Inc. Software Bedford Funding 36.0 Specialists On Call, Inc. Information & Business Services Warburg Pincus LLC 32.0 ZEFR Digital Advertising U.S. Venture Partners 30.0 Avalara Software Battery Ventures 30.0 Jabong.com Digital Medi a /Commerce CDC Group 27.5 Socialbakers Marketing Technology Index Ventures 26.0 Ionic Security, Inc. Software Google Ventures 25.5 Cl oudPa s s a ge, Inc. Software Shasta Ventures 25.5 WellTok, Inc. Marketing Technology NEA 22.0 Joyme.com Digital Media/Commerce BlueRun Ventures 21.5 Powa Technologies Ltd. Technology & Communications (Private Investors) 20.7 Trade Desk, Inc. Marketing Technology Hermes Growth Partners 20.0 Cyl a nce, Inc. Software Blackstone Ca pi ta l Partners LP 20.0 ZenPayroll, Inc. Software General Ca ta l ys t Partners LLC 20.0 FoodPanda Digital Media/Commerce Phenomen Ventures 20.0 Vungle, Inc. Digital Advertising Thomvest 17.0 OUTFITTERY GmbH Digital Media/Commerce Highland Ca pi ta l Partners 16.7 Nok Nok Labs, Inc. Software Lenovo Group Limited 16.5 Postmates, Inc. Information & Business Services Spark Capital 16.0 Cha r Software, Inc. Marketing Technology Foundation Capital 16.0 Totango Marketing Technology Canvas Venture Fund 15.5 Newlans, Inc. Technology & Communications Intel Capital 15.0 UrbanSitter Digital Advertising DBL Investors 15.0 49 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Curi ous .com, Inc. Marketing Technology GSV Capital$ 15.0 PlaceIQ, Inc. Marketing Technology Harmony Partners 15.0 Splice Machine, Inc. Technology & Communications InterWest Partners 15.0 FourSquare Labs, Inc. Digital Media/Commerce Microsoft Corporation 15.0 Remind101, Inc. Technology & Communications Kleiner Perkins Caufield & Byers 15.0 Datadog, Inc. Software OpenView Venture Partners 15.0 NuoDB, Inc. Software Dassault Systemes 14.2 PubMatic Marketing Technology Nokia Growth Partners 13.0 VivaReal.com.br Digital Medi a /Commerce (Pri va te Investors) 12.8 IZEA Holdings, Inc. Digital Advertising Special Situations Fund 12.0 Kahuna, Inc. Marketing Technology Sequoia Capital 11.0 RiseSmart, Inc. Software Accel‐KKR, LLC 11.0 ClubLocal, LLC Digital Media/Commerce Groupon, Inc. 10.7 ThoughtSpot, Inc. Marketing Technology Lightspeed Venture Partners 10.7 Tapingo Marketing Technology Khosla Ventures 10.5 Unidesk Corporation Technology & Communications (Private Investors) 10.2 Mobvoi.com Ma rketing Technology SIG Asia Investments 10.0 SpareFoot, Inc. Digital Advertising Insight Venture Partners 10.0 Kmsocial Ma rketing Technology Fosun Venture Ca pi ta l Investment 10.0 AviaSales Digital Advertising iTech Capital 10.0 nCino, LLC Technology & Communications Wellington Ma nagement Company 10.0 Primary Data LLC Technology & Communications Mercato Partners 10.0 Kantox Ltd. Technology & Communications Partech Ventures 9.9 BeyondCore, Inc. Marketing Technology Menlo Ventures 9.0 Hubub, Inc. Digital Medi a /Commerce (Pri va te Investors) 8.5 Etransmedia Technology, Inc. Information & Business Services Praesidian Ca pi ta l 8.3 Ravel Law, Inc. Information & Business Services New Enterprise Associates 8.1 Piazza Technologies, Inc. Digital Media/Commerce Khosla Ventures 8.0 Moko Social Media Digital Advertising (Private Investors) 8.0 Ezetap Mobile Solutions Pvt. Ltd. Marketing Technology Social and Ca pi ta l Partnership 8.0 Apprity, Inc. Softwa re Norwest Venture Partners 8.0 Tictail AB Marketing Technology Thrive Ca pi ta l 8.0 Hoopla Software Marketing Technology Trinity Ventures 8.0 Sportpursuit Ltd. Digital Media/Commerce DFJ Esprit 7.6 edo Interactive Marketing Technology (Private Investors) 7.5 InfiniDB, Inc. Agency & Ma rketing Services McDonnell Ventures 7.5 TeamSnap, Inc. Digital Media/Commerce Foundry Group 7.5 Acompli, Inc. Digital Media/Commerce Redpoint Ventures 7.3 mCASH Norway AS Technology & Communications Northzone Ventures 7.0 Smarter Remarketer Marketing Technology Battery Ventures 7.0 MD Revolution, Inc. Digital Medi a /Commerce (Pri va te Investors) 7.0 Levo League Digital Medi a /Commerce (Pri va te Investors) 7.0 50 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Noom, Inc. Digital Media/Commerce RRE Investors$ 7.0 OnShift, Inc. Software HLM Venture Partners 7.0 BaseKit Platform Limited Marketing Technology Eden Ventures 6.8 If You Ca n Company Digital Media/Commerce GreyLock Partners 6.5 Bitium, Inc. Software Polaris Partners 6.5 Bookmycab.com Digital Media/Commerce Mumba i Angels 6.5 TrackMaven, Inc. Marketing Technology New Enterprise Associates 6.5 Skytap, Inc. Technology & Communications OpenView Venture Partners 6.4 Elastica, Inc. Software Mayfield Fund 6.3 Skillshare, Inc. Digital Media/Commerce Union Square Ventures 6.1 Sideband Networks Softwa re (Priva te Investors) 6.0 Ci rcl eCI, Inc. Software Draper Fisher Jurvetson 6.0 Apartment List Digital Advertising Glynn Capi tal Management 6.0 Engagement Labs, Inc. Marketing Technology (Private Investors) 6.0 Jivox, Inc. Digital Advertising Fortisure Ventures LLC 5.8 Unitas Global, LLC Software MK Capi tal Management LLC 5.7 Saisei Networks, Pte Ltd. Technology & Communications Oxygen Ventures 5.6 Strevus Information & Business Services Blumberg Ca pi ta l 5.6 TraceLink, Inc. Software FirstMark Capi tal 5.5 CyberSens e, Inc. Software BRM Ca pi ta l 5.0 Spree Commerce, Inc. Marketing Technology Thrive Ca pi ta l 5.0 BigTinCan Mobile Pty Ltd. Marketing Technology Southern Cros s Venture Partners 5.0 Ca mpa nja AB Marketing Technology DFJ Espirit 5.0 Wellspring Worldwide Software MK Capi tal Management LLC 5.0 isocket Digital Advertising R&R Partners , Inc. 5.0 Apportable, Inc. Software Google Ventures 5.0 Cybereason Softwa re Cha rles River Ventures 4.6 Deliv Information & Business Services Simon Property Group 4.5 EDITD Marketing Technology Index Ventures 4.4 iDevices, LLC Software Stonehenge Ca pi ta l Compa ny, LLC 4.3 Granular, Inc. Marketing Technology Andreessen Horowitz 4.2 ThreatStream, Inc. Software Google Ventures 4.0 Front Desk, Inc. Software FLOODGATE Fund LP 4.0 Capillary Technologies Ptv. Ltd. Marketing Technology American Express Ventures 4.0 Mojn Ltd. Digital Advertising Northzone Ventures 4.0 TriFort, Inc. Digital Media/Commerce World Innovation Lab 3.9 Docurated, Inc. Marketing Technology Rogers Venture Partners 3.8 YEVVO Digital Advertising Aleph Global 3.7 Resourcing Edge Human Resources Software Central Valley Ca bl e 3.7 FlashNotes, Inc. Digital Media/Commerce Stage 1 Ventures, LLC 3.6 ViSenze Marketing Technology Rakuten Ventures 3.5 myHealthTeams, Inc. Marketing Technology The Westly Group 3.4 51 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed iCitizen Digital Media/Commerce Martin Compa ni es$ 3.3 FarFaria Marketing Technology Inventus Ca pi ta l Partners 3.3 Blueliv Software Kibo Ventures 3.2 CounterTa ck, Inc. Software Siemens Venture Ca pi ta l 3.0 CourseHorse Digital Advertising (Private Investors) 3.0 GuestDriven Digital Media/Commerce Plaza Ventures 3.0 Varsity News Network, LLC Digital Media/Commerce Arsenal Ca pi ta l Partners, Inc. 3.0 BlueConic, Inc. Marketing Technology Sigma Prime Ventures 3.0 MeraJob India Private Limited Digital Advertising (Private Investors) 3.0 The Orange Chef Company Digital Media/Commerce Google Ventures 3.0 Workboard, Inc. Software Granite Ventures, LLC 2.8 Transcriptic, Inc. Software IA Ventures 2.8 PitchPoint Solutions, Inc. Technology & Communications BEST Funds 2.7 CloudOne Corporation Software Bootstrap Venture Fund 2.7 Stoke, Inc. Technology & Communications (Private Investors) 2.7 The Black Tux, Inc. Digital Media/Commerce Lerer Ventures 2.6 wise.io, Inc. Technology & Communications (Private Investors) 2.6 npm, Inc. Software True Ventures 2.6 Rocketrip, Inc. Marketing Technology Canaan Partners 2.6 HiConversion, Inc. Marketing Technology LB Merchant HC‐22.6 Powerlinx, Inc. Digital Medi a /Commerce (Pri va te Investors) 2.5 Adar IT Technology & Communications MK Capi tal Management LLC 2.4 Rise Labs, Inc. Digital Media/Commerce FLOODGATE Fund LP 2.3 Tapiture Digital Media/Commerce Jump Ca pi ta l 2.3 Motilo Digita l Advertising (Private Investors) 2.2 Opal Labs, Inc. Marketing Technology Oregon Angel Fund 2.1 Magisto Digital Media/Commerce Mail.Ru 2.0 Architizer LLC Digital Advertising Gaspar Global Ventures 2.0 Bloom That, Inc. Digital Medi a /Commerce (Pri va te Investors) 2.0 Cel ery Ma rketi ng Technology Y Combi nator 2.0 iFood Digital Media/Commerce Movile 2.0 Jack Erwin, Inc. Digital Medi a /Commerce Cros s l i nk Ca pi ta l 2.0 Wisembly Software Alven Ca pi ta l Partners 2.0 Ca rwow Di gi ta l Media/Commerce Balderton Ca pi ta l 2.0 Confi de, Inc. Technology & Communications WGI Group 1.9 Boost Communications Digital Advertising Investinor 1.7 SoundFocus Digital Media/Commerce Kapor Capi tal 1.7 Little Bird, Inc. Marketing Technology Oregon Angel Fund 1.7 Klipfolio, Inc. Marketing Technology BDC Venture Ca pi ta l 1.7 Ca s per Sleep Digital Media/Commerce Norwest Venture Partners 1.6 UXPin Sp. z o.o. Software Andreessen Horowitz 1.6
52 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed XipLink, Inc. Technology & Communications BEST Funds$ 1.5 EdSurge, Inc. Digital Media/Commerce GSV Capi tal 1.5 BlueTalon, Inc. Marketing Technology Data Collective 1.5 VoApps, Inc. Technology & Communications Buckhead Investment Partners 1.5 PrivateGriffe S.p.a. Digital Media/Commerce VAM Investments 1.5 Bulu Box, Inc. Digital Medi a /Commerce (Pri va te Investors) 1.4 Dunwello, Inc. Marketing Technology NextView Ventures 1.4 DataRank, Inc. Marketing Technology The Founders Cl ub 1.4 Little Borrowed Dress, Inc. Digital Media/Commerce Index Ventures 1.3 Askem TLV Ltd. Digital Media/Commerce Microsoft Ventures 1.3 PredicSis Technology & Communications Innovacom 1.3 ArborMetrix, Inc. Software Renaissance Venture Ca pi ta l 1.3 ArborMetrix, Inc. Software Renaissance Venture Ca pi ta l 1.3 Dash Software, LLC Marketing Technology New York Angels, Inc. 1.2 Cra yon Data Pte. Ltd. Technology & Communications Jungle Ventures 1.2 PandoDaily Digital Media/Commerce VegasTechFund 1.2 LoginRadius, Inc. Marketing Technology BDC Venture Ca pi ta l 1.2 atVenu, Inc. Marketing Technology Real Ventures 1.1 Easy Social Shop Marketing Technology lool ventures 1.1 Newscrafted LLC Information & Business Services Broadmark Ca pi ta l , LLC 1.1 TradeYa! Digital Medi a /Commerce (Pri va te Investors) 1.1 Options Away, LLC Digital Advertising (Private Investors) 1.1 Opternative, Inc. Digital Medi a /Commerce Chi ca go Ventures 1.0 Beat the Q Pty Ltd. Digital Medi a /Commerce (Pri va te Investors) 1.0 Kanga Information & Business Services (Private Investors) 1.0 AdStage, Inc. Marketing Technology Digital Garage, Inc. 1.0 Kanvas Labs, Inc. Digital Media/Commerce Dace Ventures LLC 1.0 Brand Embassy Ltd. Marketing Technology Rockaway Ca pi ta l 1.0 Lailaihui.com Digital Medi a /Commerce CDH Investments 1.0 Donde, Inc. Marketing Technology Mercury Fund 1.0 Watchup, Inc. Digital Advertising Microsoft Ventures 1.0
53 | M&A and Investment Summary February 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Undisclosed Yeapoo Marketing Technology Intel Capi tal ‐ Ramen Software (Private Investors) ‐ Chi na Cloud Software Intel Capi tal ‐ BlueWhale Software Intel Capi tal ‐ ettain group, Inc. Information & Business Services New MainStream Ca pi ta l , LP ‐ Spire Technologies & Solutions Technology & Communications (Private Investors) ‐ Cl a ri ty Software Solutions, Inc. Softwa re North Bridge Venture Partners ‐ Daxko, Inc. Marketing Technology Pamlico Ca pi ta l ‐ Transzap, Inc. Software Accel‐KKR, LLC ‐ Tonic Health Software Hearst Health ‐ On Time Technologies Pvt. Ltd. Digital Medi a /Commerce Cel kon Mobiles ‐ MaintenanceNet, Inc. Software Kayne Partners ‐ Madison Plus Select, Inc. Digital Media/Commerce (Angel Investors) ‐ Storyvine, Inc. Digital Medi a /Commerce Pa voni s Ca pi ta l ‐ Encore Ma rketing Technology CIT Gap Funds ‐ RestOpolis s.r.l Digital Advertising (Angel Investors) ‐ Revionics, Inc. Marketing Technology Motorola Solutions Venture Ca pi ta l ‐ abusix GmbH Software Target Partners ‐ Bluefly, Inc. Digital Media/Commerce CrunchFund ‐ KPI Consulting (Assets) Marketing Technology Perigee Capi tal Partners ‐ Platfora, Inc. Marketing Technology Citi Venture Ca pi ta l International ‐ DeviceAuthority, Inc. Software Alsop Louie Partners ‐ CoPromote Marketing Technology ff Venture Ca pi ta l ‐ AVAST Software a.s. Software CVC Ca pi ta l Partners Ltd. ‐ Mech Mocha Game Studios Digital Medi a /Commerce CIIE ‐ DataMentors, Inc. Marketing Technology Brook Venture Partners ‐ e.l.f. Cosmetics Digital Media/Commerce TPG Growth ‐ RedZebra Analytics Ltd. Agency & Ma rketing Services SBT Venture Ca pi ta l ‐
54 | M&A and Investment Summary February 2014 Petsky Prunier: Maximizing Shareholder Value
Overview
. Founded in 1999 . Focused on the technology, marketing, media, eCommerce, and healthcare industries • More than 35 focused professionals . Unique combination of investment banking and consulting expertise . New York, Palo Alto, Las Vegas, Chicago, Boston, Tampa . Sell‐side and private placement close rate is unmatched at our level of deal volume . Deep relationships across a broad spectrum of venture capital and private equity groups, lenders and strategic buyers . With strategic consulting firm Winterberry Group, one of the largest industry‐specific advisors providing strategic and transactional services . International reach enhanced through our partnership with investment bank Altium, which operates from eight offices across Europe . Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker‐dealer
. Sell‐Side Representation . Technology . Strategic Development and Competitive Analysis . Capital Raising and Private Placements . Marketing . M&A Transaction Due Diligence Support and . Corporate Divestitures . Media Valuation Analysis . M&A Advisory . eCommerce . Acquisition Strategy and Target Identification . Fairness Opinions . Healthcare . Publishing and Thought Leadership
55 | M&A and Investment Summary February 2014 Petsky Prunier was Ranked #1 by Bloomberg in 2011 – 2013 for Mid‐Market Internet & Advertising Transactions
Rank Advisor Deal Count 1Petsky Prunier LLC 44 2Goldman Sachs & Co. 35 3Jordan Edmiston Group, Inc. 31 4Morgan Stanley 29 4Nomura Holdings, Inc. 29 4GCA Savvian Group Corp. 29 7PwC 24 7 China Renaissance Partners 24 9KPMG Corporate Finance 22 10 Sumitomo Mitsui Financial Group, Inc. 20
Based on number of deals announced in 2011 – 2013 valued at $500 million or less
More than 50 transactions closed since 2011: . Ranging from strategic M&A transactions, including sales and divestitures, to private equity recaps, to growth equity and late stage venture capital financings . Across a broad universe of industries, including digital advertising and marketing, eCommerce and digital media, technology and software, information services, and healthcare
56 | M&A and Investment Summary February 2014 International Partnership with Altium
Description Network
. Altium provides M&A and corporate finance advisory services to companies, private equity firms, and entrepreneurs New York Palo Alto Madrid Zurich Las Vegas Chicago Manchester Frankfurt . European‐based, mid‐market financial advisory group, Boston Tampa London Milan Paris Munich employee‐owned and truly independent
. A leading advisor for more than 25 years
. Founded as the corporate finance arm of private equity investor Apax Partners
. Operates eight international offices in Europe with additional partnerships in the U.S. and Asia
. Completed 50+ technology transactions across 12 countries in the past five years
. Allegro Advisors is a leading provider of investment banking services to corporations and public institutions in India with India Beijing Shanghai offices in Bangalore, Mumbai, Delhi
. Hina Group has provided M&A advisory and corporate finance services on 50+ transactions in China
57 | M&A and Investment Summary February 2014 Representative Recent Transactions
a portfolio company of a leading SaaS‐based, cross channel a Berlin‐based worldwide travel solution the largest independent eCommerce a technology company delivering highly campaign management platform provider for premium transportation a leading provider of transaction‐based retailer of promotional products targeted programmatic marketing for B2C marketers a consumer enthusiast media media cost databases and software one of the largest independent solutions using unstructured data and commerce company has sold has received a double‐digit million Euro for television, radio, and digital in‐store media companies in the U.S. has received a $16MM Series B advertising cost analysis has been sold to has been sold to has been sold to investment led by investment led by has been sold to Sample Management Business has been sold to to
a leading UK‐based supplier of a premier global provider of SaaS‐based the largest provider of cloud‐based SaaS healthcare software and IT services a leading provider of social software online brand protection and tools for printing signs, labels and tags, a leading provider of data‐driven one of the largest digital agencies solutions and digital marketing services a portfolio company of domain recovery solutions and publishing digital displays for retailers a leading provider of online customer enrollment marketing solutions to for some of the world’s largest brands, a portfolio company of has been sold to a leading developer of popular acquisition services to the higher education institutions real‐money and social gaming one of just thirteen Facebook Strategic has been sold to insurance industry Preferred Marketing Developers (sPMD) has acquired select assets of has been sold to has been sold to has been sold to has received a $68MM minority has been sold to a unit of investment from
(AIM: EMIS) (Nasdaq: RNWK) (Nasdaq: RNWK) (NYSE: RATE) (Euronext Amsterdam: WKL) (ENXTPA: PUB) (NYSE: LXK )
has sold a leading digital advertising monetization and shopper marketing partner for e‐commerce has sold a dynamic display media and a leading provider of transportation‐based retailers a leading provider of in‐store and shopper a real‐time behavioral a leading provider of digital production along with digital subsidiary retargeting company digital media networks a portfolio company of marketing signage to major advertising company services to brands and agencies North American retailers has been acquired by has been acquired by has received a mezzanine debt has been sold to investment from provider of online travel guides for top has been sold to has been sold to destinations around the world specializing in retail, digital, shopper to marketing and consumer services
to with financing from (NYSE: AOL) (NYSE: ACN) (NYSE: GCI ) (JASDAQ:4755)
has sold a leading digital direct marketing company a leader in global healthcare primary utilizing a proprietary database to provide market research and influence customer acquisition solutions for a leader in technology and global in‐app the top independent a leading provider of taxi‐based advertising for Facebook, a provider of a cloud‐based integration network mapping direct‐to‐consumer marketer of outdoor media major brands a leader in multichannel retail, Apple (iOS), and Android developers platform for the digital marketing industry dental savings plans and has received an equity investment from ecommerce and loyalty marketing has been sold to has been sold to services has received $66M investment has received $15MM financing has been sold to leading provider of services for domain from led by has been sold to name registration, acquisition, brokerage a portfolio company of and sales with debt financing from to (NYSE: PAY)
58 | M&A and Investment Summary February 2014