Technology Investment Banking 2015 Year in Review

Member FINRA | SIPC U.S. TECHNOLOGY | 2015 YEAR IN REVIEW Technology Investment Banking

This summer I said to a friend “it feels like 1999 in the Bay Area” – his reply “it is worse.” For me, 1999 in the Bay Area equaled: bad traffic; dramatic innovation driven by the nascent internet economy; lofty public market valuations; excess; and mature technology companies that needed to evolve, contract, or be replaced. Swap the words “internet” with “cloud and mobility” and “public market valuations” with “acquisition and private market valuations” and it feels like 1999 (sans a catchy song and Uber).

Much will be written on the unicorns in end of year reports. Instead, we focus on the middle market where:  Companies are acquiring for innovation  Maturing technology is changing ownership – divestitures and acquisitions  Private equity is becoming a more significant consolidator of new technology and providing growth equity, consistent with a broader private equity focus on the middle market and diversified asset management  Venture investing remains robust with the addition of increased corporate, international, and other investor participation

Add these M&A and fundraising tailwinds with solid technology innovation, including mobility, lower technology development costs, and a solidified public cloud infrastructure (Amazon, Microsoft), and we think the future is bright for sustained middle market M&A.

It seems like we are in a venture market technology bubble. The thing about bubbles – they are easy to spot with anecdotal data. The harder part is knowing when the bubble will burst. Someone luckier than us will perfectly time the bust and end up with a Wall Street Journal story and a Fortune feature. Data points that we are watching and that seem excessive include: corporate venture and incubation; crowdfunding, incubators, and entrepreneur mentorship programs; and the number of well-funded, duplicative companies.

A bursting bubble may let some air out of M&A valuations, but we do not think it will stall middle market M&A activity.

Our advice to business owners and investors remains the same – build (invest in) an enduring business where you have expertise, spend in proportion to the market opportunity and competitive environment, and partner with complementary companies to drive value for customers. Companies will continue to look to the private markets for innovation and will look first to partners where they have joint-customer success.

In the following pages we share our analysis of 2015, and provide valuation indications for selected M&A transactions and publicly traded companies.

1 ABOUT OUR FIRM Technology Investment Banking

Cassel Salpeter & Co. is a boutique investment banking firm focused on providing independent and objective advice to middle market and emerging growth companies. Finding the right financial partner in the fragmented technology market requires solid industry positioning and broad industry relationships. We can help.

Our experience and services include:

Mergers & Acquisitions Capital Raising Other Services

 Financial advisory  Financial advisory  Fairness opinions  Sales to strategic and private  Equity and debt private  Solvency opinions equity buyers placements  Valuations  Divestitures to strategic and  Growth capital  Restructuring, refinancing, and private equity buyers  PIPEs distressed M&A transactions  Buy-side acquisition programs  Recapitalizations  Debtor and creditor  Leveraged & management representations buyouts  363 sales & plans of  Going private transactions reorganization

James S. Cassel Scott Salpeter Ranjini Chandirakanthan Chairman President Director, Technology [email protected] [email protected] [email protected] 305-438-7701 305-438-7702 305-438-7811

www.casselsalpeter.com

2 Technology Investment Banking

I 2015 YEAR IN REVIEW

II M&A TRANSACTIONS

III PUBLIC MARKETS REVIEW

3 U.S. TECHNOLOGY M&A REMAINS ROBUST Technology Investment Banking

While it is interesting to look at M&A dollar volume, it is misleading. Mega deals drive dollar volume. In 2015, the largest 5 deals contributed 27% of the total deal value. 75% of the 2015 transaction values were not announced, indicating a healthy middle market.

M&A Transactions M&A Transactions by Size Value, $Bs No. of Transactions

$250 Closed Transactions 2,500 Closed Transactions 2,226 2,148 100% 1,874 $200 1,819 2,000 80% 1,518 1,344 $150 1,500 60%

$100 1,000 40%

$50 500 20%

$- 0 0% 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Value, $Bs No. of Transactions Undisclosed Under $100M $100M - $250M $250M-$1B $1B+

Selected 2015 Transactions, No Deal Values Provided ($ in millions) Date Annc. Closed Target Acquirer Seller(s) Target Industry 3-Sep-15 2-Nov-15 Sirius Computer Solutions, Inc. Kelso & Company Thoma Bravo, LLC IT Consulting and Other Services 19-Jun-15 1-Jul-15 Intelius H.I.G. Capital Undisclosed Internet Software and Services 8-May-15 8-May-15 Compusearch Software Systems, Inc. ABRY Partners, LLC Arlington Capital Partners , JMI Equity Application Software 14-Apr-15 4-May-15 Fidelis Cybersecurity Marlin Equity Partners, LLC General Dynamics Infrastructure Software 5-Nov-14 2-Feb-15 FishNet Consulting, Inc. Accuvant, Inc. (nka:Optiv Security Inc.) Investcorp IT Consulting and Other Services

Sources of information: Pitchbook.

4 STRATEGIC ACQUIRERS CONSOLIDATE Technology Investment Banking

Technology companies continue to acquire for innovation or for economies of scale. Two notable trends:  Acquisitions by VC-backed companies are growing  Following a broader private equity move from large buy-outs to diversified financial companies, private equity firms are consolidating smaller, fragmented segments of technology Number of M&A Transactions by Buyer Type Example Strategic Platform Acquisitions Closed Transactions Date 100% Annc. Closed Target Acquirer Alphabet (Google) - Nest 80% 13-Jan-14 7-Feb-14 Nest Labs, Inc. Alphabet (Google) 20-Jun-14 17-Jul-14 Dropcam, Inc. Nest Labs, Inc. 60% 24-Oct-14 24-Oct-14 Revolv Inc. Nest Labs, Inc.

40% Microsoft Dynamics 6-Jan-14 18-Feb-14 Parature, Inc. Microsoft Dynamics Inc. 20% 19-Mar-13 7-Mar-13 Netbreeze GmbH Microsoft Dynamics Inc. 17-Oct-12 17-Oct-12 MarketingPilot Software, LLC Microsoft Dynamics Inc. 0% 2010 2011 2012 2013 2014 2015 Strategic, Other Strategic, VC Add-on Strategic, PE Add-on PE Buyout Example VC Supported Acquisitions Example PE Platform, Add-On Acquisitions Date Date Annc. Closed Target Acquirer Annc. Closed Target Acquirer Docusign 9-May-14 9-May-14 DealerSocket, Inc. Vista Equity Partners 10-Nov-15 10-Nov-15 Estate Assist, Inc. DocuSign, Inc. 19-Jan-15 19-Jan-15 DealerFire Inc. DealerSocket, Inc. 8-Sep-15 21-Sep-15 Selected assets from OpenTrust DocuSign, Inc. 26-Feb-15 26-Feb-15 Finance Express, LLC DealerSocket, Inc. 11-Mar-15 11-Mar-15 Algorithmic Research Ltd. DocuSign, Inc. 5-May-15 5-May-15 Autostar Solutions, Inc. DealerSocket, Inc. 7-Mar-14 10-Mar-14 Comprova.com Informatica S.A. DocuSign, Inc. 20-Aug-15 1-Oct-15 Dealertrack Inventory+ DealerSocket, Inc. 15-May-13 15-May-13 Cartavi, Inc. DocuSign, Inc. Marlin Equity Partners - Changepoint Slack 8-Jan-14 31-Jan-14 Changepoint Marlin Equity Partners, LLC 28-Jan-15 28-Jan-15 Screenhero, Inc Slack Technologies, Inc. 18-Aug-14 18-Aug-14 Daptiv, Inc. Changepoint Corporation 25-Sep-14 25-Sep-14 Spaces Slack Technologies, Inc. 2-Apr-15 2-Apr-15 Barometer, Inc. Changepoint Corporation 5 Sources of information: Pitchbook and S&P Capital IQ. PRIVATE EQUITY INVESTS IN TECHNOLOGY Technology Investment Banking

Consistent with the broader private equity move from large buyouts to diversified asset managers, private equity is embracing middle market technology. Large and leveraged technology buyouts will continue. In the middle market, PE fund managers are:  Making multiple technology bets, with a platform and add-on strategy  Focused on growth, future cash flow, and equity financing Sources of Funds: U.S. PE Funds Raised, Avail. for Tech PE Investments PE Funds Closed $200 Closed Transactions 718 800 $400 347 400 724 325 625 301 305 595 284 276 $300 300 $150 517 499 600 230 436 225 213 415 345 371 $200 175 178 200 $100 306 400

$100 100 $50 200

$- 0 $- 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Value, $Bs No. of Funds Value, $Bs No. of Transactions PE Investments: Estimated Value by Type PE Investments: No. of Transactions by Type Closed Transactions Closed Transactions 100% 100%

80% 80%

60% 60%

40% 40%

20% 20%

0% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Investment, non-control Buyout - Public Co. Investment, non-control Buyout - Public Co. Buyout - Private Co. Add-on Acquisition Buyout - Private Co. Add-on Acquisition Sources of information: Pitchbook. 6 PRIVATE EQUITY TECHNOLOGY EXITS FAVOR M&A Technology Investment Banking

Consistent with the PE investment strategy outlined on the prior page, we expect continued middle market exits to strategic acquirers and to other PE firms. PE Exits: Estimated Value by Type PE Exits: No. of Transactions by Type

$80 Closed Transactions 225 Closed Transactions $74.3 204 200 $70 176 175 $60 $59.8 158 $50.0 150 141 $50 $44.5 132 125 $39.7 125 116 114 $40 $30.6 100 88 $30 $25.9 89 $22.6 75 58 $20 $16.1 $13.8 $11.4 50 $10 25 $- - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Strategic Sale PE Sale IPO Strategic Sale PE Sale IPO

Selected 2015 PE Exits ($ in millions) Date Enterprise Annc. Closed Target Acquirer Seller(s) Value M&A, PE to Strategic 27-Oct-15 22-Dec-15 Lancope, Inc. Cisco Systems, Inc. Canaan Partners; H.I.G. Capital $ 452.5 14-Jul-15 9-Oct-15 The Telx Group, Inc. Digital Realty Trust Inc. ABRY Partners, LLC; Berkshire Partners LLC 1,886.0 9-Dec-14 2-Jan-15 Tripwire, Inc. Belden Inc. Thoma Bravo, LLC 710.0 8-Aug-14 7-Jan-15 SafeNet, Inc. Gemalto NV Vector Capital 957.0 M&A, PE to PE 10-Mar-15 26-May-15 Blue Coat Systems Inc. Bain Capital, LP Thoma Bravo, LLC 2,400.0 1-Dec-14 9-Feb-15 IPC Systems, Inc. Centerbridge Partners Silver Lake 1,200.0 Sources of information: Pitchbook and S&P Capital IQ. 7 VENTURE CAPITAL AVAILABLE FOR TECHNOLOGY Technology Investment Banking

2015 was a solid year for U.S. institutional venture capital funding raising. In addition to robust U.S. VC fundraising, corporations and international investors participated in U.S. venture investments, with notable growth in early stage. Anecdotally, we see more high net worth individuals, family offices, and private equity funds participating in venture technology investments.

Sources of Funds: U.S. VC Funds Raised

$40 VC Funds Closed 258 300 237 250 193 193 $30 173 178 184 187 150 200 134 $20 118 150 100 $10 50 $- 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Value, $Bs No. of Funds

Corporate Investments in U.S. Tech Ventures Int’l Investors Investments in U.S. Tech Ventures 800 Participation in Closed Transactions Participation in Closed Transactions 703 5,000 4,691 700 650 565 600 4,000 3,656 3,301 500 409 3,000 365 2,644 400 336 301 324 300 243 2,000 1,847 231 229 200 212 212 212 190 201 196 200 182 175 171 144 937 1,000 620 692 100 599 428 545 395 530 368 405 333 386 306 257 244 211 305 - - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Early stage Growth and late stage Early stage Growth and late stage Note: some transactions may be double counted, e.g. 2+ corporate investors Note: some transactions may be double counted , e.g. 2+ international investors Sources of information: Pitchbook. 8 VENTURE CAPITAL FUNDING INNOVATION Technology Investment Banking

2015 was a robust VC technology investment year, both in early stage and late stage venture capital. Early Stage VC Investments Closed Transactions Some established VCs with solid track records are raising $20 6,625 7,000 5,767 larger funds and, as a result, are focused on 5,288 6,000 $15 opportunities that could become the next unicorn: $1B+ 4,337 5,000 valuations in multi-billion dollar markets where VCs can 3,211 4,000 deploy large amounts of capital over the next few years. $10 3,000 This trend is likely fueling full valuations for some 2,175 1,710 companies, leaving little room for later round investors, 1,564 1,605 2,000 $5 1,070 1,176 acquirers, or public market investors to yield a return. 1,000 In the middle market, there are ample venture capital $- 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 investors that are looking to invest in differentiated Value, $Bs No. of Transactions technology for smaller markets and that require less growth capital. These investors are looking for discipline Growth and Late Stage VC Investments in results, including revenue growth, customer retention, Closed Transactions and spending in proportion to the market opportunity $35 1,200 1,010 and the competitive environment. $30 864 898 857 1,000 812 $25 784 743 Active venture investment increases fragmentation, as 703 684 800 well as, innovation. We think that the pipeline of funded $20 567 578 600 ventures will fuel middle market M&A for the $15 400 foreseeable future. $10

$5 200

$- 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Value, $Bs No. of Transactions

Sources of information: Pitchbook.

9 VENTURE CAPITAL EXITS FAVOR M&A Technology Investment Banking

We expect continued middle market exits to strategic acquirers and to PE firms. If investors are spooked by recent stock market results and devaluation in some unicorn venture companies, consolidation may accelerate as underfunded companies look for acquirers. Note that large deals skew values (e.g. in 2012 Facebook raised $16B in its IPO and in 2014 Facebook purchased WhatsApp for $20B).

VC Exits: Estimated Value by Type VC Exits: No. of Transactions by Type

$60 Closed Transactions 700 Closed Transactions 618 $50 $50.2 600 574 $45.7 546 550 $38.6 500 $40 425 445 400 374 $30 304 295 304 $22.8 $22.6 $21.5 300 253 $20 $16.1 $15.9 $13.1 200 $8.9 $10 $6.0 100

$- - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Strategic Sale PE Sale IPO Strategic Sale PE Sale IPO

Selected 2015 VC Exits ($ in millions) ($ in millions) Date Enterprise Date Enterprise Annc. Closed Target Acquirer Value Annc. Closed Target Acquirer Value M&A, VC to Strategic M&A, VC to Strategic 7-Oct-15 31-Oct-15 Ticketfly, Inc. Pandora Media, Inc. $ 358.5 26-May-15 9-Jul-15 Virtustream Inc. EMC Corporation $1,200.0 8-Sep-15 8-Sep-15 Adallom, Inc. Microsoft Corporation 320.0 28-Apr-15 22-May-15 TellApart, Inc. Twitter, Inc. 470.1 3-Sep-15 30-Sep-15 Elemental Tech Amazon Web Services, Inc. 500.0 19-Mar-15 27-Apr-15 OverDrive, Inc. Rakuten USA, Inc. 410.0 9-Jul-15 9-Jul-15 Caspida, Inc. Splunk, Inc. 190.0 4-Feb-15 17-Mar-15 MyFitnessPal, Inc. Under Armour, Inc. 474.0

Sources of information: Pitchbook and S&P Capital IQ. 10 CONCLUSION Technology Investment Banking

2015 middle market M&A and fundraising continued to be robust, notably:  Companies acquired for innovation  Maturing technology changed ownership – divestitures and acquisitions  Private equity became a more significant consolidator of new technology and provider of growth equity, consistent with a broader private equity focus on the middle market and diversified asset management  Venture capital remained robust with the addition of increased corporate, international, and other investor participation

Add these acquisition and fundraising tailwinds with solid technology innovation, including mobility, lower technology development costs, and a solidified public cloud infrastructure (Amazon, Microsoft), and we think the future is bright for sustained middle market M&A.

A bursting venture market bubble may let some air out of M&A valuations, but we do not think it will stall middle market M&A activity.

Our advice to business owners and investors remains the same:  Build (invest in) an enduring business where you have expertise  Spend in proportion to the market opportunity and competitive environment  Partner with complementary companies to drive value for customers.

Companies will continue to look to the private markets for innovation and will look first to partners where they have joint-customer success.

11 Technology Investment Banking

I 2015 YEAR IN REVIEW

II M&A TRANSACTIONS

III PUBLIC MARKETS REVIEW

12 SOFTWARE Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Business Analytics 3-Aug-15 3-Aug-15 1010data, Inc. Advance Communication Corp. $ 500.0 na na na na na na 27-Apr-15 31-May-15 Applied Predictive Technologies, Inc. MasterCard Incorporated 600.0 na na na na na na Mean $ 550.0 na na na na na na Median $ 550.0 na na na na na na Human Capital Resources 21-Jul-15 21-Aug-15 Global HR Research, LLC Patriot National, Inc. $ 42.5 $ 10.8 -3.9% 3.95x na na na 10-Feb-15 30-Mar-15 Saba Software, Inc. Vector Capital 400.0 na na na na 0.7% 25.9% Mean $ 221.3 $ 10.8 -3.9% 3.95x na 0.7% 25.9% Median $ 221.3 $ 10.8 -3.9% 3.95x na 0.7% 25.9% ERP 11-Aug-15 18-Sep-15 GT Nexus, Inc. Infor (US), Inc. $ 675.0 $ 133.2 7.5% 5.07x 67.50x na na 5-Feb-15 25-Mar-15 E2open, Inc. Insight Venture Partners 249.9 78.5 -33.1% 3.18x na 40.8% -0.2% Mean $ 462.5 $ 105.9 -12.8% 4.12x 67.50x 40.8% -0.2% Median $ 462.5 $ 105.9 -12.8% 4.12x 67.50x 40.8% -0.2% Healthcare 25-Nov-15 8-Jan-16 Healthland, Inc. Computer Programs & Systems Inc. $ 258.7 na na na na na na 2-Nov-15 na MedAssets, Inc. Pamplona Capital 2,775.2 764.2 28.5% 3.63x 12.74x 32.4% 46.6% 30-Oct-15 4-Jan-16 HealthFusion, Inc. Quality Systems Inc. 190.0 na na na na na na 29-Oct-15 5-Jan-16 Aesynt Incorporated Omnicell International, Inc. 275.0 182.0 11.0% 1.51x 13.75x na na 24-Aug-15 10-Sep-15 RSA Medical, LLC Xerox Corporation 141.0 na na na na na na 24-Aug-15 1-Sep-15 Avalere Health LLC Inovalon Holdings, Inc. 131.4 49.5 -5.9% 2.65x na na na 14-Aug-15 1-Sep-15 Learner's Digest International LLC Wolters Kluwer Health, Inc. 150.0 39.0 na 3.85x na na na 6-Aug-15 13-Oct-15 Merge Healthcare Incorporated International Business Machines 975.3 227.6 17.3% 4.29x 24.71x 31.8% 57.0% 4-Aug-15 20-Aug-15 CECity.com, Inc. Premier Healthcare Solutions, Inc. 400.0 na na na na na na Mean $ 588.5 $ 252.5 12.7% 3.19x 17.07x 32.1% 51.8% Median $ 258.7 $ 182.0 14.2% 3.63x 13.75x 32.1% 51.8% Sources of information: S&P Capital IQ.

13 SOFTWARE (CONTINUED) Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Infrastructure 3-Nov-15 na Unify Inc. Atos SE $ 425.4 $ 1,314.4 na 0.33x na na na 21-Oct-15 na SolarWinds, Inc. Silver Lake and Thoma Bravo 4,446.3 485.9 30.9% 9.15x 29.64x 19.7% 44.1% 13-Oct-15 13-Oct-15 RevelOps, Inc. Rapid7 LLC 71.1 na na na na na na 29-Sep-15 12-Oct-15 Intronis, Inc. Barracuda Networks, Inc. 65.0 20.6 1.4% 3.16x 218.98x na na 4-Sep-15 30-Oct-15 Good Technology Corporation BlackBerry Limited 425.0 211.9 -25.0% 2.01x nm na na 11-Aug-15 na Veritas Technologies LLC The Carlyle Group LP; GIC Pte. Ltd. 8,000.0 na na na na na na 27-May-15 8-Jul-15 Rally Software Development Corp. CA, Inc. 465.8 92.5 -30.6% 5.03x na 42.9% 27.5% 26-May-15 9-Jul-15 Virtustream Inc. EMC Corporation 1,200.0 na na na na na na 7-Apr-15 6-Aug-15 Informatica Corporation Microsoft, Permira, and others 4,785.1 1,066.5 18.2% 4.49x 24.70x 6.4% 14.0% 24-Mar-15 21-May-15 Kofax Limited Lexmark International Technology S.A. 954.9 298.3 7.4% 3.20x 43.02x 48.0% 68.5% 2-Mar-15 29-Apr-15 Mavenir Systems, Inc. Mitel U.S. Holdings, Inc. 491.9 129.8 -8.4% 3.79x na na na 12-Jan-15 8-Jan-15 Sanbolic, Inc. Citrix Systems, Inc. 89.4 na na na na na na Mean $ 1,785.0 $ 452.5 -0.9% 3.89x 79.09x 29.2% 38.5% Median $ 478.9 $ 255.1 1.4% 3.50x 36.33x 31.3% 35.8% Sales, Marketing, and Customer Service 23-Dec-15 na SteelBrick Holdings, Inc. salesforce.com, inc. $ 300.0 na na na na na na 5-Nov-15 9-Dec-15 MarketShare Partners LLC NeuStar, Inc. 450.0 57.0 na 7.89x na na na 2-Nov-15 na Constant Contact, Inc. Endurance International 931.6 361.9 12.6% 2.57x 20.49x 27.6% 33.5% 7-Jul-15 6-Aug-15 MaintenanceNet, Inc. Cisco Systems, Inc. 139.0 na na na na na na 28-Apr-15 22-May-15 TellApart, Inc. Twitter, Inc. 470.1 na na na na na na 23-Apr-15 8-Jun-15 Bronto Software, Inc. NetSuite Inc. 200.0 na na na na na na Mean $ 415.1 $ 209.4 12.6% 5.23x 20.49x 27.6% 33.5% Median $ 375.0 $ 209.4 12.6% 5.23x 20.49x 27.6% 33.5% Sources of information: S&P Capital IQ.

14 SOFTWARE (CONTINUED) Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Vertical - Advertising 17-Nov-15 8-Dec-15 Fluent, Inc. IDI, Inc. $ 255.0 $ 126.0 15.8% 2.02x 12.81x na na 3-Sep-15 22-Oct-15 Millennial Media Inc. AOL Inc. 218.3 285.3 -14.5% 0.77x na 30.6% 7.4% 31-Aug-15 na Spigot Inc. Genimous Investment Co., Ltd. 244.3 na na na na na na 18-Mar-15 18-Mar-15 Yieldex, Inc. AppNexus Inc. 100.0 na na na na na na Mean $ 204.4 $ 205.6 0.7% 1.39x 12.81x 30.6% 7.4% Median $ 231.3 $ 205.6 0.7% 1.39x 12.81x 30.6% 7.4% Vertical - Automotive 29-Oct-15 na Control-Tec LLC Delphi Automotive PLC $ 145.0 na na na na na na 20-Aug-15 1-Oct-15 Certain Dealertrack assets DealerSocket, Inc. 55.0 na na na na na na 3-Aug-15 4-Dec-15 HERE Holding Corp. (Navteq) Daimler; BMW; AUDI 3,048.0 1,064.4 na 2.88x na na na 15-Jun-15 1-Oct-15 Dealertrack Technologies, Inc. Cox Automotive, Inc. 4,447.3 993.1 13.0% 4.48x 34.54x 58.7% 49.1% 22-Jan-15 2-Mar-15 Red Bend Software, Inc. Harman Becker Automotive Systems 200.1 na na na na na na Mean $ 1,579.1 $ 1,028.7 13.0% 3.68x 34.54x 58.7% 49.1% Median $ 200.1 $ 1,028.7 13.0% 3.68x 34.54x 58.7% 49.1% Vertical - Education 19-Oct-15 25-Nov-15 Campus Labs, LLC iModules Software, Inc. $ 91.0 na na na na na na 17-Jun-15 na Pearson Edu, Student Info Systems Vista Equity Partners 350.0 na na na na na na 4-Feb-15 20-Mar-15 Schoolwires, Inc. Blackboard Inc. 97.0 na na na na na na Mean $ 179.3 na na na na na na Median $ 97.0 na na na na na na Vertical - Public 1-Oct-15 16-Nov-15 New World Systems Corporation Tyler Technologies, Inc. $ 716.0 na na na na na na 10-Aug-15 2-Oct-15 Smart Tuition, LLC Blackbaud Inc. 190.0 na na na na na na Mean $ 453.0 na na na na na na Median $ 453.0 na na na na na na Sources of information: S&P Capital IQ.

15 SOFTWARE (CONTINUED) Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Vertical - Financial 22-Sep-15 16-Oct-15 Portware LLC FactSet Research Systems Inc. $ 265.0 na na na na na na 14-Sep-15 16-Nov-15 Primatics Financial LLC SS&C Technologies Holdings, Inc. 122.0 51.0 23.5% 2.39x 10.17x na na 2-Sep-15 22-Sep-15 Baker Hill Corporation The Riverside Company 100.0 31.0 na 3.23x na na na 10-Aug-15 19-Nov-15 Yodlee, Inc. Envestnet, Inc. 502.3 104.0 -4.2% 4.83x na 50.1% 28.7% 27-Jul-15 1-Sep-15 SNL Financial LC McGraw Hill Financial, Inc. 2,225.0 224.1 na 9.93x na na na 9-Jul-15 21-Aug-15 Wealth Management Systems Inc. DST Retirement Solutions, LLC 64.0 na na na na na na 1-Jul-15 12-Nov-15 Xoom Corporation PayPal, Inc. 901.4 177.1 0.0% 5.09x na 18.7% 31.1% 30-Mar-15 30-Apr-15 Fundtech Ltd. DH Corporation 1,250.0 262.7 22.6% 4.76x 21.04x na na 10-Feb-15 9-Feb-15 Akcelerant Software LLC Temenos U.S.A., Inc. 55.0 na na na na na na 2-Feb-15 8-Jul-15 Advent Software, Inc. SS&C Technologies Holdings, Inc. 2,549.7 403.3 26.2% 6.32x 24.09x 5.7% 46.8% 28-Jan-15 13-Mar-15 KCG Hotspot FX LLC BATS Global Markets, Inc. 435.0 na na na na na na Mean $ 769.9 $ 179.0 13.6% 5.22x 18.43x 24.9% 35.5% Median $ 435.0 $ 177.1 22.6% 4.83x 21.04x 18.7% 31.1% Vertical - Other 22-Dec-15 na ShopperTrak RCT Corporation Tyco International plc $ 175.0 $ 75.0 na 2.33x na na na 17-Dec-15 na FNC, Inc. CoreLogic, Inc. 475.0 na na na na na na 8-Oct-15 21-Oct-15 Aderant Holdings, Inc. Roper Technologies, Inc. 675.0 na na na na na na 13-Sep-15 na Solera Holdings Inc. Vista Equity Partners 6,540.2 1,174.1 35.9% 5.57x 15.54x 12.9% 25.4% 20-Jul-15 20-Jul-15 On Center Software, Inc. Roper Technologies, Inc. 157.0 na na na na na na 1-Jul-15 na Navitaire LLC Amadeus IT Group SA 830.0 na na na 13.80x na na 22-Apr-15 4-Jun-15 Procera Networks, Inc. Francisco Partners 136.4 81.4 -6.4% 1.68x na 23.9% 21.3% 19-Mar-15 27-Apr-15 OverDrive, Inc. Rakuten USA, Inc. 410.0 na na na na na na 27-Feb-15 9-Jun-15 Borderfree, Inc. Pitney Bowes International 372.0 123.8 -3.1% 3.01x na 79.9% 124.4% 22-Jan-15 8-Apr-15 Symphony Teleca Corp. Harman International 780.0 370.0 16.2% 2.11x 13.00x na na Mean $ 1,055.1 $ 364.8 10.6% 2.94x 14.11x 38.9% 57.0% Median $ 442.5 $ 123.8 6.5% 2.33x 13.80x 23.9% 25.4% Sources of information: S&P Capital IQ.

16 SECURITY Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Security 11-Dec-15 11-Dec-15 Cyveillance, Inc. Lookingglass Cyber Solutions, LLC $ 35.0 $ 18.0 na 1.94x na na na 8-Dec-15 na L-3 National Security Solutions CACI Inc. - Federal 550.0 1,000.0 na 0.55x na na na 9-Nov-15 na Elastica, Inc. Blue Coat Systems Inc. 280.0 na na na na na na 27-Oct-15 22-Dec-15 Lancope, Inc. Cisco Systems, Inc. 452.5 na na na na na na 21-Oct-15 na TippingPoint Technologies, Inc. Trend Micro Incorporated 300.0 169.0 na 1.78x na na na 19-Oct-15 na Vormetric, Inc. Thales e-Security, Inc. 400.0 53.5 na 7.48x na na na 9-Oct-15 15-Oct-15 Marvasol, Inc. LogMeIn, Inc. 115.7 11.2 -23.7% 10.30x na na na 7-Oct-15 15-Oct-15 Viewfinity, Inc. CyberArk Software, Ltd. 30.5 na na na na na na 8-Sep-15 8-Sep-15 Adallom, Inc. Microsoft Corporation 320.0 na na na na na na 9-Jul-15 9-Jul-15 Caspida, Inc. Splunk, Inc. 190.0 na na na na na na 7-Apr-15 1-Sep-15 TrustWave Holdings, Inc. Singapore Telecommunications Limited 785.7 216.0 na 3.64x na na na 10-Mar-15 26-May-15 Blue Coat Systems Inc. Bain Capital, LP 2,400.0 na na na na na na 2-Mar-15 6-Mar-15 Emerging Threats Pro, Inc. Proofpoint, Inc. 32.3 na na na na na na Mean $ 453.2 $ 244.6 -23.7% 4.28x na na na Median $ 300.0 $ 111.3 -23.7% 2.79x na na na Sources of information: S&P Capital IQ.

17 ENTERPRISE SYSTEMS Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Networking 22-Jul-15 20-Nov-15 Cisco CPE Business Technicolor SA $ 605.3 na na na na na na 27-May-15 7-Jul-15 Meru Networks, Inc. Fortinet Inc. 30.1 87.7 -16.9% 0.34x na 18.1% 31.5% 2-Mar-15 18-May-15 Aruba Networks, Inc. Hewlett-Packard Company 2,359.7 812.4 9.9% 2.90x 29.21x -0.6% 48.8% Mean $ 998.4 $ 450.1 -3.5% 1.62x 29.21x 8.8% 40.1% Median $ 605.3 $ 450.1 -3.5% 1.62x 29.21x 8.8% 40.1% Storage 21-Dec-15 na SolidFire Inc. NetApp, Inc. $ 870.0 na na na na na na 12-Oct-15 na EMC Corporation Dell; Silver Lake 68,031.0 24,738.0 20.7% 2.75x 13.32x 19.0% 34.8% Sources of information: S&P Capital IQ.

18 INTERNET Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Internet Retail 5-Nov-15 29-Dec-15 Insurancequotes and NetQuote All Web Leads, Inc. $ 165.0 na na na na na na 4-Nov-15 14-Dec-15 HomeAway, Inc. Expedia Inc. 3,076.2 485.3 12.6% 6.34x 50.12x 25.6% 43.2% 7-Oct-15 31-Oct-15 Ticketfly, Inc. Pandora Media, Inc. 358.5 55.0 na 6.52x na na na 17-Aug-15 30-Sep-15 zulily, Inc. (nka:zulily, LLC) QVC, Inc. 2,162.6 1,281.4 2.2% 1.69x 76.70x 49.2% 34.6% 29-May-15 17-Jul-15 Geeknet, Inc. GameStop Corp. 102.7 137.1 -6.0% 0.75x na 5.5% 125.5% 27-May-15 13-Jul-15 Orchard Brands Corporation Bluestem Brands, Inc. 410.0 1,020.0 6.9% 0.40x 5.80x na na 2-Mar-15 2-Apr-15 Paydiant, Inc. PayPal Holdings, Inc. 230.0 na na na na na na 12-Feb-15 17-Sep-15 Orbitz Worldwide, Inc. Expedia Inc. 1,612.4 933.5 11.5% 1.73x 14.97x 24.7% 30.7% 10-Feb-15 9-Feb-15 Eat24Hours.com, Inc. Yelp Inc. 138.3 na na na na na na Mean $ 917.3 $ 652.0 5.5% 2.90x 36.90x 26.2% 58.5% Median $ 358.5 $ 709.4 6.9% 1.71x 32.54x 25.1% 38.9% Internet Content and Search 11-Nov-15 na Angie's List, Inc. IAC/InterActiveCorp $ 512.9 $ 340.0 5.9% 1.51x 25.69x 11.6% 51.4% 27-Oct-15 27-Oct-15 Pure Auto LLC Raycom Media, Inc. 125.0 na na na na na na 31-Jul-15 2-Sep-15 Polyvore, Inc. Yahoo! Inc. 230.0 na na na na na na 22-Jul-15 20-Aug-15 dotloop, Inc. Zillow Group, Inc. 108.0 na na na na na na 12-May-15 23-Jun-15 AOL Inc. Verizon Communications Inc. 4,282.5 2,569.0 16.8% 1.67x 9.90x 17.4% 28.1% 4-Feb-15 17-Mar-15 MyFitnessPal, Inc. Under Armour, Inc. 474.0 14.0 -46.1% 33.93x na na na Mean $ 955.4 $ 974.3 -7.8% 12.37x 17.80x 14.5% 39.7% Median $ 352.0 $ 340.0 5.9% 1.67x 17.80x 14.5% 39.7% Sources of information: S&P Capital IQ.

19 PROFESSIONAL SERVICES AND DISTRIBUTION Technology Investment Banking

Selected Transactions Review ($ in millions) Transaction Metrics Valuation Benchmarks Date Enterprise Target TTM Implied EV / Stock Price Premiums Annc. Closed Target Acquirer Value Revenue EBITDA % Revenue EBITDA 1-Day 1-Month Consulting 8-Dec-15 na L-3 National Security Solutions CACI Inc. - Federal $ 550.0 $ 1,000.0 na 0.55x na na na 29-Oct-15 29-Oct-15 PowerTeam, Inc. HCL Technologies Ltd. 46.0 1,288.1 19.3% 1.24x na na na 27-Apr-15 1-Jul-15 iGATE Corporation Capgemini North America, Inc. 4,453.6 1,288.1 19.3% 3.46x 17.90x 4.7% 13.5% 9-Mar-15 1-Apr-15 Acentia, LLC MAXIMUS Federal Services, Inc. 455.3 193.2 11.4% 2.36x 20.69x na na 9-Feb-15 25-Mar-15 Agilex Technologies, Inc. Accenture Federal Services LLC 263.8 na na na na na na Mean $ 1,153.8 $ 942.3 16.7% 1.90x 19.30x 4.7% 13.5% Median $ 455.3 $ 1,144.0 19.3% 1.80x 19.30x 4.7% 13.5% Infrastructure Outsourcing 16-Nov-15 na INetU Inc. ViaWest, Inc. $ 162.5 na na na na na na 19-Feb-15 1-Apr-15 MegaPath Managed Services GTT Americas 152.4 124.0 16.1% 1.23x 7.62x na na Mean $ 157.4 $ 124.0 16.1% 1.23x 7.62x na na Median $ 157.4 $ 124.0 16.1% 1.23x 7.62x na na Sources of information: S&P Capital IQ.

20 Technology Investment Banking

I 2015 YEAR IN REVIEW

II M&A TRANSACTIONS

III PUBLIC MARKETS REVIEW

21 SELECTED MARKET INDICES Technology Investment Banking

December 31, 2014 to December 31, 2015

Relative Performance

120

110

100

70 S&P 500 Index -0.7% NASDAQ Composite Index 5.7% 60 S&P Midcap 400 Sector Indices - Information Technology Sector Index 0.0% Russell 1000 Technology Sector 2.7% Russell 2000 Technology Sector 0.4%

50 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15

Sources of information: S&P Capital IQ.

22 SOFTWARE Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Large Diversified Adobe Systems Incorporated ADBE $ 93.94 97.4% - 136.2% $ 44,776.4 $ 4,795.5 21.2% 25.9% 9.34x 7.80x 36.0x 21.2x Hewlett Packard Enterprise Company HPE $ 15.20 87.6% - 115.9% 32,821.3 52,107.0 -2.7% 14.7% 0.63x 0.63x 4.3x 4.4x International Business Machines Corporation IBM $ 137.62 78.1% - 104.5% 163,755.6 83,795.0 -2.0% 25.6% 1.95x 2.00x 7.6x 7.6x Oracle Corporation ORCL $ 36.38 80.3% - 103.5% 143,483.6 37,473.0 3.3% 40.6% 3.83x 3.80x 9.4x 8.3x Mean 85.8% - 115.0% $ 96,209.2 $ 44,542.6 4.9% 26.7% 3.94x 3.56x 14.4x 10.3x Median 83.9% - 110.2% $ 94,130.0 $ 44,790.0 0.7% 25.7% 2.89x 2.90x 8.5x 7.9x Application Software Intuit Inc. INTU $ 96.20 88.1% - 120.8% $ 25,852.4 $ 4,293.0 5.3% 27.2% 6.02x 5.75x 22.1x 17.2x Manhattan Associates, Inc. MANH $ 66.17 85.1% - 175.0% 4,715.5 545.3 9.9% 29.0% 8.65x 8.47x 29.8x 26.0x NetSuite Inc. N $ 84.62 77.0% - 107.4% 6,636.2 692.8 29.9% -8.3% 9.58x 8.98x na nm SPS Commerce, Inc. SPSC $ 70.21 89.7% - 132.9% 1,044.4 151.6 19.5% 10.1% 6.89x 6.60x nm 47.7x Upland Software, Inc. UPLD $ 7.05 68.0% - 119.7% 106.9 68.8 4.5% -0.1% 1.55x 1.54x na 29.3x Workiva Inc. WK $ 17.57 93.5% - 143.4% 658.5 135.5 24.0% -28.8% 4.86x 4.59x na na Mean 83.6% - 133.2% $ 6,502.3 $ 981.2 15.5% 4.9% 6.26x 5.99x 25.9x 30.1x Median 86.6% - 126.9% $ 2,879.9 $ 348.5 14.7% 5.0% 6.46x 6.17x 25.9x 27.7x Human Capital Management Benefitfocus, Inc. BNFT $ 36.39 76.6% - 185.9% $ 1,026.6 $ 171.0 25.4% -27.5% 6.00x 5.62x na na Cornerstone OnDemand, Inc. CSOD $ 34.53 84.8% - 127.9% 1,896.8 320.2 28.3% -18.5% 5.92x 5.55x na nm Paycom Software, Inc. PAYC $ 37.63 81.2% - 168.7% 2,201.6 203.6 31.1% 20.1% 10.81x 9.98x nm 46.2x Paylocity Holding Corporation PCTY $ 40.55 86.5% - 182.6% 1,982.7 166.7 33.4% -3.6% 11.89x 10.95x na nm The Ultimate Software Group, Inc. ULTI $ 195.51 90.4% - 140.3% 5,481.8 582.9 23.0% 11.3% 9.40x 8.89x nm 36.7x Workday, Inc. WDAY $ 79.68 83.7% - 122.0% 14,069.6 1,065.2 33.6% -15.4% 13.21x 12.15x na nm Mean 83.9% - 154.5% $ 4,443.2 $ 418.2 29.1% -5.6% 9.54x 8.86x na 41.5x Median 84.3% - 154.5% $ 2,092.1 $ 261.9 29.7% -9.5% 10.11x 9.43x na 41.5x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

23 SOFTWARE (CONTINUED) Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Sales, Marketing, and Customer Service Bazaarvoice, Inc. BV $ 4.38 46.6% - 106.8% $ 299.8 $ 196.7 6.6% -9.1% 1.52x 1.52x na na Callidus Software Inc. CALD $ 18.57 85.8% - 151.5% 946.7 164.4 22.5% -3.1% 5.76x 5.48x na nm Constant Contact, Inc. CTCT $ 29.24 67.7% - 128.5% 761.4 361.9 13.9% 12.6% 2.10x 2.07x 16.7x 10.5x HubSpot, Inc. HUBS $ 56.31 93.7% - 177.2% 1,816.1 163.0 33.7% -33.2% 11.14x 10.14x na na LivePerson Inc. LPSN $ 6.75 47.3% - 100.4% 346.0 238.1 9.1% 7.0% 1.45x 1.44x 20.9x 16.2x Marketo, Inc. MKTO $ 28.71 80.6% - 123.9% 1,137.2 193.9 32.1% -29.5% 5.86x 5.42x na na salesforce.com, inc. CRM $ 78.40 94.6% - 142.7% 52,763.5 6,302.4 21.5% 6.3% 8.37x 7.94x nm 44.3x ServiceSource International, Inc. SREV $ 4.61 75.0% - 153.7% 313.3 261.9 3.9% -5.3% 1.20x 1.25x na na Zendesk, Inc. ZEN $ 26.44 93.8% - 239.1% 2,064.5 184.7 40.1% -35.3% 11.18x 10.00x na na Mean 76.1% - 147.1% $ 6,716.5 $ 896.3 20.4% -10.0% 5.40x 5.03x 18.8x 23.7x Median 80.6% - 142.7% $ 946.7 $ 196.7 21.5% -5.3% 5.76x 5.42x 18.8x 16.2x Business Analytics Fair Isaac Corporation FICO $ 94.18 96.5% - 135.6% $ 3,448.6 $ 838.8 3.9% 22.6% 4.11x 4.06x 18.2x 17.5x MicroStrategy Inc. MSTR $ 179.29 79.2% - 119.5% 1,580.7 535.2 6.6% 26.2% 2.95x 2.99x 11.3x 10.1x Qlik Technologies, Inc. QLIK $ 31.66 73.8% - 114.9% 2,623.6 590.0 16.8% 0.5% 4.45x 4.26x nm 45.1x Tableau Software, Inc. DATA $ 94.22 71.7% - 124.0% 6,074.3 593.8 33.7% -1.4% 10.23x 9.32x na nm Teradata Corporation TDC $ 26.42 56.2% - 110.1% 3,349.9 2,572.0 -4.9% 17.2% 1.30x 1.33x 7.6x 6.1x Mean 75.5% - 120.8% $ 3,415.4 $ 1,026.0 11.2% 13.0% 4.61x 4.39x 12.3x 19.7x Median 73.8% - 119.5% $ 3,349.9 $ 593.8 6.6% 17.2% 4.11x 4.06x 11.3x 13.8x Design and Engineering Autodesk, Inc. ADSK $ 60.93 92.6% - 144.9% $ 12,931.5 $ 2,520.4 -15.0% 6.8% 5.13x 5.20x nm 40.7x Ansys, Inc. ANSS $ 92.50 94.0% - 117.4% 7,454.9 945.5 8.3% 45.6% 7.88x 7.84x 17.3x 15.5x Cadence Design Systems Inc. CDNS $ 20.81 89.3% - 126.0% 5,828.5 1,684.1 6.5% 23.7% 3.46x 3.43x 14.6x 10.7x Mentor Graphics Corp. MENT $ 18.42 65.6% - 107.6% 2,144.8 1,282.8 3.7% 22.4% 1.67x 1.82x 7.5x 8.3x PTC Inc. PTC $ 34.63 81.0% - 113.4% 4,360.9 1,255.2 -1.6% 20.2% 3.47x 3.57x 17.2x 13.1x Synopsys Inc. SNPS $ 45.61 86.4% - 109.6% 6,147.8 2,242.2 6.3% 18.4% 2.74x 2.71x 14.9x 10.5x Mean 84.8% - 119.8% $ 6,478.1 $ 1,655.0 1.4% 22.8% 4.06x 4.09x 14.3x 16.5x Median 87.9% - 115.4% $ 5,988.1 $ 1,483.4 5.0% 21.3% 3.47x 3.50x 14.9x 11.9x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

24 SOFTWARE (CONTINUED) Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Infrastructure CA, Inc. CA $ 28.56 85.5% - 113.5% $ 11,238.8 $ 4,096.0 1.8% 31.4% 2.74x 2.80x 8.7x 7.4x Carbonite, Inc. CARB $ 9.80 63.5% - 116.7% 204.5 133.5 8.2% -4.9% 1.53x 1.49x na 7.7x Citrix Systems, Inc. CTXS $ 75.65 89.9% - 134.0% 11,880.9 3,222.3 2.0% 24.7% 3.69x 3.66x 14.9x 11.9x CommVault Systems, Inc. CVLT $ 39.35 75.1% - 117.8% 1,382.9 583.6 6.3% 2.3% 2.37x 2.39x nm 20.6x Progress Software Corporation PRGS $ 24.00 78.5% - 109.4% 1,131.3 362.7 5.5% 20.1% 3.12x 2.79x 15.5x 8.2x Red Hat, Inc. RHT $ 82.81 98.1% - 132.6% 14,731.2 1,972.7 13.8% 18.5% 7.47x 6.49x 40.5x 24.3x SolarWinds, Inc. SWI $ 58.90 99.3% - 168.3% 4,130.5 485.9 18.5% 30.9% 8.50x 8.14x 27.5x 20.5x Splunk, Inc. SPLK $ 58.81 76.5% - 114.4% 6,679.4 595.8 31.3% -41.5% 11.21x 10.25x na nm VMware, Inc. VMW $ 56.57 60.5% - 107.3% 18,100.1 6,481.0 9.3% 26.2% 2.79x 2.73x 10.7x 7.7x Varonis Systems, Inc. VRNS $ 18.80 48.9% - 129.0% 379.2 117.1 22.0% -17.8% 3.24x 3.03x na na Mean 77.6% - 124.3% $ 6,985.9 $ 1,805.1 11.9% 9.0% 4.67x 4.38x 19.6x 13.5x Median 77.5% - 117.2% $ 5,404.9 $ 589.7 8.8% 19.3% 3.18x 2.92x 15.2x 10.1x Collaboration Box, Inc. BOX $ 13.96 56.4% - 127.7% $ 1,485.6 $ 280.4 30.9% -57.7% 5.30x 4.96x na na IntraLinks Holdings, Inc. IL $ 9.07 70.9% - 111.2% 549.8 272.3 6.6% 3.9% 2.02x 2.00x nm 13.9x LogMeIn, Inc. LOGM $ 67.10 89.0% - 148.9% 1,435.9 255.4 19.4% 11.8% 5.62x 5.32x 47.8x 21.2x RingCentral, Inc. RNG $ 23.58 91.9% - 177.3% 1,560.7 274.7 24.4% -7.9% 5.68x 5.32x na nm Workiva Inc. WK $ 17.57 93.5% - 143.4% 658.5 135.5 24.0% -28.8% 4.86x 4.59x na na Mean 80.3% - 141.7% $ 1,138.1 $ 243.7 21.1% -15.7% 4.70x 4.44x 47.8x 17.5x Median 89.0% - 143.4% $ 1,435.9 $ 272.3 24.0% -7.9% 5.30x 4.96x 47.8x 17.5x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

25 SOFTWARE (CONTINUED) Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Healthcare athenahealth, Inc. ATHN $ 160.97 94.5% - 145.4% $ 6,432.5 $ 880.4 19.8% 7.8% 7.31x 6.95x nm 35.8x Computer Programs & Systems Inc. CPSI $ 49.75 79.0% - 138.0% 523.9 184.2 5.6% 19.1% 2.84x 2.84x 14.9x 15.9x Healthstream Inc. HSTM $ 22.00 67.9% - 105.3% 551.4 198.5 12.4% 16.3% 2.78x 2.66x 17.0x 16.5x Inovalon Holdings, Inc. INOV $ 17.00 50.4% - 103.0% 2,136.2 406.6 21.7% 33.6% 5.25x 4.84x 15.6x 13.9x MedAssets, Inc. MDAS $ 30.94 99.0% - 182.0% 2,634.5 764.2 0.9% 28.5% 3.45x 3.44x 12.1x 11.1x Medidata Solutions, Inc. MDSO $ 49.29 80.4% - 137.6% 2,691.6 382.8 18.9% 10.5% 7.03x 6.75x nm 29.5x Quality Systems Inc. QSII $ 16.12 86.0% - 134.3% 870.3 499.3 4.4% 11.5% 1.74x 1.74x 15.2x 11.8x Veeva Systems Inc. VEEV $ 28.85 85.7% - 130.5% 3,497.5 382.0 25.4% 23.8% 9.16x 8.63x 38.5x 30.2x Mean 80.4% - 134.5% $ 2,417.2 $ 462.3 13.6% 18.9% 4.94x 4.73x 18.9x 20.6x Median 83.1% - 136.0% $ 2,385.4 $ 394.7 15.6% 17.7% 4.35x 4.14x 15.4x 16.2x Other Vertical Blackbaud Inc. BLKB $ 65.86 96.1% - 162.6% $ 3,260.8 $ 614.9 15.3% 15.9% 5.30x 5.08x 33.4x 22.5x CDK Global, Inc. CDK $ 47.47 82.0% - 122.3% 8,206.4 2,061.1 5.9% 21.8% 3.98x 4.00x 18.3x 16.7x Demandware, Inc. DWRE $ 53.97 71.1% - 122.7% 1,851.1 214.2 28.7% -14.7% 8.64x 7.90x na nm Ebix Inc. EBIX $ 32.79 85.6% - 203.2% 1,260.1 255.9 4.8% 35.1% 4.92x 4.81x 14.0x 13.0x Epiq Systems, Inc. EPIQ $ 12.98 68.0% - 108.2% 876.6 478.1 9.2% 13.3% 1.83x 1.75x 13.8x 8.3x Guidewire Software, Inc. GWRE $ 60.16 92.9% - 132.7% 3,764.4 383.1 10.5% 4.5% 9.83x 9.64x nm nm OPOWER, Inc. OPWR $ 10.56 68.0% - 134.5% 477.6 143.0 18.4% -26.8% 3.34x 3.23x na na Q2 Holdings, Inc. QTWO $ 26.37 86.6% - 154.8% 901.3 100.6 31.8% -14.9% 8.96x 8.32x na na Solera Holdings Inc. SLH $ 54.83 96.7% - 151.7% 6,415.8 1,174.1 8.2% 35.9% 5.46x 5.34x 15.2x 13.8x SS&C Technologies Holdings, Inc. SSNC $ 68.27 88.4% - 130.8% 9,280.0 900.1 43.9% 32.7% 10.31x 9.03x 31.5x 20.6x Silver Spring Networks, Inc. SSNI $ 14.41 89.1% - 204.1% 604.0 367.7 13.9% 7.8% 1.64x 2.15x 21.1x nm Tyler Technologies, Inc. TYL $ 174.32 94.7% - 168.9% 5,668.5 559.5 30.9% 22.6% 10.13x 9.72x 44.8x 36.8x Mean 84.9% - 149.7% $ 3,547.2 $ 604.4 18.5% 11.1% 6.20x 5.91x 24.0x 18.8x Median 87.5% - 143.1% $ 2,555.9 $ 430.6 14.6% 14.6% 5.38x 5.21x 19.7x 16.7x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

26 SECURITY Technology Investment Banking

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

27 ENTERPRISE SYSTEMS Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Large Diversified Apple Inc. AAPL $ 105.26 78.2% - 114.4% $ 609,339.3 $ 233,715.0 4.8% 35.3% 2.61x 2.58x 7.4x 7.4x Hewlett Packard Enterprise Company HPE $ 15.20 87.6% - 115.9% 32,821.3 52,107.0 -2.7% 14.7% 0.63x 0.63x 4.3x 4.4x HP Inc. HPQ $ 11.84 28.8% - 104.8% 28,829.5 103,355.0 -46.4% 11.8% 0.28x 0.33x 2.4x 2.8x International Business Machines Corporation IBM $ 137.62 78.1% - 104.5% 163,755.6 83,795.0 -2.0% 25.6% 1.95x 2.00x 7.6x 7.6x Oracle Corporation ORCL $ 36.38 80.3% - 103.5% 143,483.6 37,473.0 3.3% 40.6% 3.83x 3.80x 9.4x 8.3x Mean 70.6% - 108.6% $ 195,645.9 $ 102,089.0 -8.6% 25.6% 1.86x 1.87x 6.2x 6.1x Median 78.2% - 104.8% $ 143,483.6 $ 83,795.0 -2.0% 25.6% 1.95x 2.00x 7.4x 7.4x Networking A10 Networks, Inc. ATEN $ 6.56 79.0% - 165.7% $ 315.0 $ 187.5 14.3% -18.0% 1.68x 1.60x na na Arista Networks, Inc. ANET $ 77.84 87.9% - 138.7% 4,748.4 765.6 27.2% 19.8% 6.20x 5.70x 31.4x 19.8x Brocade Communications Systems, Inc. BRCD $ 9.18 70.8% - 108.5% 3,115.1 2,263.5 2.1% 25.7% 1.38x 1.39x 5.4x 4.7x Cisco Systems, Inc. CSCO $ 26.95 88.9% - 117.0% 103,362.9 49,598.0 0.7% 27.6% 2.08x 2.09x 7.6x 7.2x Extreme Networks Inc. EXTR $ 4.08 89.8% - 193.8% 396.8 541.2 -1.1% 1.6% 0.73x 0.75x 45.0x 10.4x F5 Networks, Inc. FFIV $ 96.96 71.7% - 102.6% 6,049.6 1,919.8 7.9% 31.0% 3.15x 3.11x 10.2x 7.9x Gigamon Inc. GIMO $ 26.57 76.4% - 176.0% 717.8 206.2 18.4% 6.1% 3.48x 3.30x nm 15.1x Juniper Networks, Inc. JNPR $ 27.60 85.2% - 129.9% 10,614.7 4,639.8 4.7% 21.0% 2.29x 2.20x 10.9x 8.2x Netgear Inc. NTGR $ 41.91 91.6% - 149.0% 1,056.7 1,293.0 3.1% 9.3% 0.82x 0.82x 8.7x 7.4x NetScout Systems, Inc. NTCT $ 30.70 67.4% - 104.2% 2,974.7 604.1 68.5% 18.0% 4.92x 3.77x 27.4x 11.5x Mean 80.9% - 138.5% $ 13,335.2 $ 6,201.9 14.6% 14.2% 2.67x 2.47x 18.3x 10.2x Median 82.1% - 134.3% $ 3,044.9 $ 1,029.3 6.3% 18.9% 2.19x 2.14x 10.5x 8.2x Storage EMC Corporation EMC $ 25.68 85.5% - 113.3% $ 51,102.3 $ 24,738.0 3.6% 21.0% 2.07x 2.05x 9.8x 8.2x Nimble Storage, Inc. NMBL $ 9.20 28.6% - 100.7% 506.7 300.4 23.8% -32.1% 1.69x 1.58x na na NetApp, Inc. NTAP $ 26.34 63.0% - 104.5% 4,430.9 5,870.7 -0.5% 11.3% 0.75x 0.77x 6.7x 4.3x Pure Storage, Inc. PSTG $ 15.57 75.6% - 127.0% 2,387.2 356.0 55.2% -48.6% 6.71x 5.56x na na Quantum Corporation QTM $ 0.93 41.9% - 141.1% 351.9 517.7 1.4% 0.4% 0.68x 0.69x nm na Mean 58.9% - 117.3% $ 11,755.8 $ 6,356.6 16.7% -9.6% 2.38x 2.13x 8.2x 6.2x Median 63.0% - 113.3% $ 2,387.2 $ 517.7 3.6% 0.4% 1.69x 1.58x 8.2x 6.2x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

28 INTERNET Technology Investment Banking

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

29 INTERNET (CONTINUED) Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Internet Content and Search Alphabet Inc. GOOGL $ 778.01 97.4% - 158.5% $ 466,032.6 $ 71,763.0 15.1% 32.5% 6.49x 6.30x 20.0x 15.8x Angie's List, Inc. ANGI $ 9.35 83.1% - 250.7% 548.0 340.0 6.4% 5.9% 1.61x 1.59x 27.5x 19.4x Autobytel Inc. ABTL $ 22.56 90.2% - 256.4% 246.4 122.8 13.8% 8.9% 2.01x 1.85x 22.7x 16.9x Bankrate, Inc. RATE $ 13.30 84.2% - 149.9% 1,475.2 551.8 0.4% 20.4% 2.67x 2.70x 13.1x 10.3x Care.com, Inc. CRCM $ 7.16 84.2% - 146.4% 170.6 143.2 9.4% -13.8% 1.19x 1.15x na na CoStar Group Inc. CSGP $ 206.69 92.5% - 126.4% 6,709.6 674.9 18.5% 11.7% 9.94x 9.44x nm nm Everyday Health, Inc. EVDY $ 6.02 40.3% - 112.7% 271.7 213.3 13.9% 9.3% 1.27x 1.19x 13.7x 5.9x Facebook, Inc. FB $ 104.66 94.6% - 145.4% 280,269.9 15,938.0 37.8% 41.8% 17.59x 16.07x 42.1x 25.8x TripAdvisor Inc. TRIP $ 85.25 90.7% - 137.0% 11,893.9 1,471.0 15.3% 24.9% 8.09x 8.02x 32.5x 25.7x LinkedIn Corporation LNKD $ 225.08 81.5% - 135.9% 27,557.3 2,772.4 30.6% 8.3% 9.94x 9.22x nm 36.7x Monster Worldwide, Inc. MWW $ 5.73 69.6% - 141.1% 680.1 727.5 1.7% 13.1% 0.93x 1.00x 7.1x 6.2x RetailMeNot, Inc. SALE $ 9.92 45.8% - 129.5% 324.2 253.4 2.4% 19.8% 1.28x 1.34x 6.5x 4.8x TechTarget, Inc. TTGT $ 8.03 63.6% - 103.2% 238.9 113.1 11.5% 15.0% 2.11x 2.12x 14.1x 9.7x TrueCar, Inc. TRUE $ 9.54 41.3% - 237.9% 692.1 251.7 18.5% -13.6% 2.75x 2.65x na nm Twitter, Inc. TWTR $ 23.14 43.3% - 110.1% 13,916.3 1,986.6 40.7% -10.5% 7.00x 6.27x na 25.8x WebMD Health Corp. WBMD $ 48.30 96.8% - 128.6% 1,971.8 607.0 8.3% 21.2% 3.25x 3.12x 15.3x 10.6x Yahoo! Inc. YHOO $ 33.26 65.5% - 122.3% 26,777.7 4,948.0 -4.6% 9.6% 5.41x 6.62x nm 28.9x Yelp Inc. YELP $ 28.80 49.4% - 140.5% 1,798.5 505.9 25.4% 3.2% 3.56x 3.28x nm 24.5x Zillow Group, Inc. ZG $ 26.04 58.6% - 113.9% 4,302.9 567.6 21.7% -2.8% 7.58x 6.59x na 46.0x Mean 72.2% - 149.8% $ 44,519.9 $ 5,471.1 15.1% 10.8% 4.98x 4.76x 19.5x 19.6x Median 81.5% - 137.0% $ 1,798.5 $ 567.6 13.9% 9.6% 3.25x 3.12x 15.3x 18.2x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

30 PROFESSIONAL SERVICES AND DISTRIBUTION Technology Investment Banking

Selected Companies Review ($ in millions, except per share) Market Statistics Metrics Valuation Benchmarks Closing Price % of 52-week Enterprise Revenue Rev. Growth LTM EBITDA EV / Revenue EV / EBITDA Company Ticker 31-Dec-15 High-Low Value LTM '15 E-'16 E Margin LTM 2015 E LTM 2015 E Large Diversified International Business Machines Corporation IBM $ 137.62 78.1% - 104.5% $ 163,755.6 $ 83,795.0 -2.0% 25.6% 1.95x 2.00x 7.6x 7.6x Hewlett Packard Enterprise Company HPE $ 15.20 87.6% - 115.9% 32,821.3 52,107.0 -2.7% 14.7% 0.63x 0.63x 4.3x 4.4x Mean 82.8% - 110.2% $ 98,288.4 $ 67,951.0 -2.4% 20.1% 1.29x 1.31x 6.0x 6.0x Median 82.8% - 110.2% $ 98,288.4 $ 67,951.0 -2.4% 20.1% 1.29x 1.31x 6.0x 6.0x Consulting CACI International Inc. CACI $ 92.78 89.1% - 128.5% $ 3,231.0 $ 3,321.2 10.7% 9.1% 0.97x 0.97x 10.7x 10.4x Ciber, Inc. CBR $ 3.51 83.4% - 117.0% 291.2 812.2 2.7% 3.1% 0.36x 0.37x 11.4x 12.3x Cognizant Technology Solutions Corporation CTSH $ 60.02 86.0% - 118.4% 33,395.6 11,925.7 14.1% 19.9% 2.80x 2.69x 14.1x 13.3x Computer Sciences Corporation CSC $ 32.68 44.6% - 110.7% 5,356.5 11,329.0 -26.7% 8.5% 0.47x 0.52x 5.6x 3.0x EPAM Systems, Inc. EPAM $ 78.62 93.1% - 173.7% 3,699.3 856.1 25.1% 15.2% 4.32x 4.08x 28.5x 22.1x ManTech International Corporation MANT $ 30.24 85.8% - 121.4% 1,094.5 1,559.1 4.5% 7.5% 0.70x 0.70x 9.4x 9.4x Perficient Inc. PRFT $ 17.12 79.4% - 114.9% 657.0 450.2 7.1% 12.1% 1.46x 1.41x 12.1x 9.4x Science Applications International Corporation SAIC $ 45.78 81.8% - 116.5% 3,020.4 4,196.0 5.1% 7.0% 0.72x 0.70x 10.2x 10.0x Unisys Corporation UIS $ 11.05 37.1% - 106.9% 587.9 3,131.0 -1.6% 4.1% 0.19x 0.19x 4.6x 4.0x Virtusa Corporation VRTU $ 41.34 69.6% - 113.1% 1,053.3 526.9 44.2% 13.2% 2.00x 1.89x 15.1x 13.7x Mean 75.0% - 122.1% $ 5,238.7 $ 3,810.7 8.5% 10.0% 1.40x 1.35x 12.2x 10.8x Median 82.6% - 116.8% $ 2,057.5 $ 2,345.0 6.1% 8.8% 0.85x 0.84x 11.1x 10.2x Infrastructure Outsourcing Akamai Technologies, Inc. AKAM $ 52.63 67.1% - 104.1% $ 9,316.4 $ 2,154.6 10.5% 32.3% 4.32x 4.26x 13.4x 10.5x Limelight Networks, Inc. LLNW $ 1.46 33.0% - 102.1% 77.9 168.9 8.5% -5.4% 0.46x 0.45x na 18.9x Rackspace Hosting, Inc. RAX $ 25.32 45.1% - 107.1% 3,530.5 1,951.0 11.0% 26.8% 1.81x 1.76x 6.8x 5.2x Mean 48.4% - 104.4% $ 4,308.3 $ 1,424.8 10.0% 17.9% 2.20x 2.16x 10.1x 11.5x Median 45.1% - 104.1% $ 3,530.5 $ 1,951.0 10.5% 26.8% 1.81x 1.76x 10.1x 10.5x

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.

31 PROFESSIONAL SERVICES AND DISTRIBUTION (CONTINUED) Technology Investment Banking

Market value equals price per share times number of shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash.

Sources of information: S&P Capital IQ.