Financial Technology Sector Review | Q3 2018

FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

Investment banking services are provided by Harris Williams LLC and Solebury Capital LLC, registered broker-dealers and members of FINRA and SIPC, and Harris Williams Ltd, which is private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams Ltd conduct business. FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

TECHNOLOGY, MEDIA & TELECOM HARRIS WILLIAMS (“HW”) AS A FIRM (“TMT”) GROUP Managing Director • Founded in 1991 • 35 professionals across Boston, San Francisco, and London [email protected] Office: (617) 654-2102 • 300+ professionals across eight offices globally • 47 closed transactions in the last 24 months • 140+ closed transactions in the last 24 months • 20th record year in 2017 • Consumer Internet • Enterprise Software • Digital Media and Content • Data and Analytics Managing Director • 10 industry groups • eCommerce and Retail • Data Center and Managed [email protected] Office: (617) 654-2133 • Mobile Services • Online Marketing • Infrastructure and Security Software • IT and Tech-Enabled Services Managing Director

2017 [email protected] 2017 • Education Technology • Membership Management Office: (617) 654-2117 • Fintech • Public Sector Software • Healthcare IT • Supply Chain, Transportation • Human Capital Management and Logistics • Internet and Digital Media • Infrastructure and Security Managing Director • Manufacturing Technology Software [email protected] OBSERVATIONS ON KEY FINTECH TRENDS Office: +44 (0) 20 7518 8901

• The financial technology market continues to garner significant interest from financial investors and strategic acquirers alike, with 597 M&A transactions completed year-to-date through Q3'18 Managing Director • Software companies are increasingly seeking opportunities to integrate payments and billing directly into their solutions to [email protected] both improve end-user experience and capture additional economics from financial management and payment processing Office: (415) 217-3411 • Global payment processors continue to seek opportunities to grow and differentiate the payment streams they capture and integrated capabilities they provide, evidenced by continued acquisition interest across sectors, and as payments continue to migrate online and into software driven environments Director • Corporations globally are seeking software that optimizes supply chain and procurement activities through digital B2B [email protected] payments solutions, as well as working capital exchanges that streamline corporate finance functions Office: (415) 217-3418 • The banking and insurance industries continue to undergo significant transformation as financial institutions adopt software solutions that improve operational workflows and enhance client experience across all business lines

• Consumer adoption of digital and mobile payment solutions has accelerated globally as the proliferation of smartphones, Director digital currency, and mobile wallets make online transaction increasingly frictionless, secure, and convenient [email protected] Office: +44 (0)20 7518 8909

TECHNOLOGY, MEDIA & TELECOM PAGE | 1 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

Solutions focused on Solutions focused on serving Solutions focused on supporting B2C and B2B the specific operational and delivering improved financial payments and financial activity, compliance needs of banks, and payment experiences, and serving the financial needs insurance companies, and personal wealth management, of enterprises of all sizes asset managers and access to consumer loans

PAYMENTS B2B TRANSACTIONS FINANCIAL SOFTWARE BANKING INSURANCE ASSET MGMT. / TRADING PEER-TO-PEER PERSONAL FINANCE

Select Market Participants Select Market Participants Select Market Participants

S E L E C T RECENT HW FINANCIAL TECHNOLOGY TRANSACTIONS

Provider of mental and Provider of integrated Provider of member Provider of integrated Provider of integrated behavioral health software, data and management software SaaS civic engagement SaaS, insurance, and practice management, analytics solutions to and payment and payment solutions payments solutions for revenue cycle the global energy processing solutions for government entities residential and has been management, billings, has been market including has been for non-profit has been has been commercial property acquired by and integrated acquired by financial services, acquired by organizations, camps, acquired by acquired by managers payment processing capital markets, and and sports leagues solutions trading and risk professionals

Provider of SaaS Provider of enterprise Provider of youth Provider of integrated Provider of integrated solutions that automate communication sports management payments and member SaaS and payment data collection, lifecycle solutions to software and integrated management solutions solutions for health has received a bookkeeping, and manage assets and has received a payments solutions has received a for faith-based and clubs and fitness has been has been minority accounting processes expenses majority majority non-profit organizations centers acquired by recapitalized by investment from for SMBs investment from investment from

TECHNOLOGY, MEDIA & TELECOM PAGE | 2 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

HW’s TMT Group advised Therapy Brands on its acquisition by Lightyear Capital and Oak HC/FT.

COMPANY OVERVIEW

Therapy Brands is a leading provider of fully-integrated practice management, electronic health record (EHR), payment and revenue cycle management (RCM) solutions for the mental and behavioral health market.

a portfolio company of Through its comprehensive SaaS platform purpose built for mental and behavioral health practitioners across diverse specialties, Therapy Brands’ solutions streamline practice management, EHR, RCM, billing, and payments, driving operational efficiencies while improving customer satisfaction and clinical outcomes. AND Therapy Brands serves thousands of practices across diverse end-markets, including psychotherapy, applied behavioral analysis, substance abuse, speech and occupational therapy throughout the US and processes billions in patient payments and insurance claims annually. has been acquired by RELEVANT SUB - SECTORS

AND

HW DEAL CONTACTS

Managing Director Managing Director Vice President [email protected] [email protected] [email protected] Office: (617) 654-2102 Office: (617) 654-2133 Office: (617) 654-2115

TECHNOLOGY, MEDIA & TELECOM PAGE | 3 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

250%

200% August 8, 2018 Payment networks that can facilitate next generation payment channels 150% continue to benefit from accelerating migration of digital transactions

100% Payment networks are increasingly focused on enhancing their solution offering to deliver frictionless and secure payment processing as they 50% seek to grow across end-markets and geographies Enterprise Value /

PAYMENT PAYMENT 0% NETWORKS LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Capital Raised: NA 9.8x 25.6x 21.9x S&P 500 Payment Networks Is Plastic the Future for Digital Payments?

250%

200% September 27, 2018 As payments continue to shift to digital platforms, software providers are 150% increasingly incorporating processing functionality directly into their solutions to streamline workflows and capture more economics 100% As integrated payment offerings further improve customer experiences, 50% traditional payment processors have been forced to evolve in order to

Enterprise Value / 0% maintain relevance and share PAYMENT PAYMENT LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 PROCESSING Enterprise Value: $415M 4.5x 16.4x 14.6x S&P 500 Payment Processing Uber's 'Pay With Venmo' signals the slow death of traditional POS

250%

200% July 9, 2018 B2B payments continue to be a key focus area for businesses globally 150% as supply chains move online, driving demand for solutions that improve operations and reduce payment friction 100% Businesses continue to adopt solutions that improve collections, B2B B2B 50% increase transparency across their entire ecosystem, and improve Enterprise Value / 0% compliance LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Enterprise Value: $300M

TRANSACTIONS 4.3x 12.2x 9.3x S&P 500 B2B Transactions Keeping Tabs on B2B Payments' Tipping Point

250%

200% August 22, 2018 Increasingly stringent compliance requirements across all industries are 150% driving the adoption of software solutions that improve data collection and automate regulatory documentation 100% Heightened awareness of and focus on privacy and data protection is 50% driving the need for innovative solutions that offer security and DATA & & DATA Enterprise Value / 0% improved visibility LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 COMPLIANCE Capital Raised: $68M 5.8x 16.9x 15.3x S&P 500 Data & Compliance Cost of Compliance 2018

250%

200% July 31 ,2018 Companies of all sizes across the globe continue to transition from 150% disparate legacy offerings to software solutions that improve the overall employee experience and provide organizations with greater 100% information and efficiency 50% Incumbents and challengers alike continue to be acquisitive of solutions Enterprise Value / that expand their total addressable market and enable them to offer

BENEFITS 0%

PAYROLL & & PAYROLL Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 more integrated workforce management across the employee lifecycle LTM Rev. LTM EBITDA 2019P EBITDA Capital Raised: $145M 8.6x 42.1x 24.0x S&P 500 Payroll & Benefits Square Launches Payroll Services

TECHNOLOGY, MEDIA & TELECOM PAGE | 4 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

250% 200% August 15, 2018 Traditional financial institutions continue to acquire and partner with next- 150% generation technology solutions as consumers increasingly demand multi-channel digital banking and engagement offerings 100% Digital-native banking platforms that offer consumers with flexible and 50% convenient products are gaining prominence, putting additional pressure Enterprise Value / on incumbents, particularly as consumer loyalty remains low BANKING 0% LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Enterprise Value: $500M 7.3x 22.8x 20.9x S&P 500 Banking Is the Banking Industry Experiencing Its Own ‘Kodak Moment’?

350% 300% 250% August 28, 2018 Insurance providers continue to adopt software that streamlines 200% underwriting, onboarding, and claims processing, while leveraging data to make more informed and timely assessments of risk 150% 100% Similar to the disruption occurring in the banking sector, digital-native and 50% vertical-specific platforms continue to attract customers and put Enterprise Value / 0% increasing pressure on traditional insurance providers INSURANCE LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Enterprise Value: $2.6B 7.0x 19.8x 15.0x S&P 500 Insurance Insurtech transactions climb to an all-time high

300% 250% September 6, 2018 AMT organizations continue to seek opportunities to gain competitive 200% advantages and enhance their earnings, and are increasingly looking to 150% software platforms capable of enhancing internal processes and 100% improving customer engagement

AMT 50% Enterprise Value / 0% LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Enterprise Value: $1.5B 8.5x 23.3x 14.0x S&P 500 Asset Management & Trading How Will Intelligent Technology Revolutionize the Fixed-Income Market?

250% 200% September 19, 2018 Consumer utilization of peer-to-peer payment solutions—especially those 150% facilitated through mobile—have given rise to a number of innovative offerings and has forced incumbents to acquire or launch frictionless 100% solutions to keep pace

P2P P2P 50% Growing demand for peer-to-peer transfers continues to drive down Enterprise Value / 0% costs as solutions providers of all scale compete to monetize rapidly

TRANSFERS growing payment volumes LTM Rev. LTM EBITDA 2019P EBITDA Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Capital Raised: $7.0M 4.5x 18.4x 14.7x S&P 500 P2P Transfers Here's What Leads Baby Boomers to Try P2P Payments

250% 200% August 9, 2018 Persistently low cost of capital has enabled traditional lenders to maintain 150% competitiveness, forcing challengers to find unique ways to differentiate their offerings such as partnerships, alternative funding sources, and new 100% product offerings 50% Niche players offering vertical specific solutions have successfully attracted new customers, but are still in the early stages of their LENDING Price / 0% 2018E Book Value 2019P Book Value Dec-14 Dec-15 Dec-16 Dec-17 development

MARKETPLACE MARKETPLACE Enterprise Value: $10M 1.7x 1.6x S&P 500 Marketplace Lending Personal Loans are the Fastest Growing Lending Category

TECHNOLOGY, MEDIA & TELECOM PAGE | 5 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

Payment Processing • SICOM is a leading provider of cloud-based payment processing and customer engagement software, and point-of-sale technology for quick service and fast casual restaurants • SICOM helps restaurant owners, franchisees, and food service management providers optimize customer experience Enterprise Value: $415M EV / Rev: NA and streamline operations across front- and back-end functions • Global Payment’s acquisitions of SICOM furthers its expansion into vertical specific software solutions and provides a Rev: NA EV / EBITDA: NA complementary customer base to its existing Xenial product suite, strengthening its position in one of its largest addressable markets

Payment Processing • AdvancedMD is a leading provider of cloud-based practice management and patient engagement software solutions for small-to-medium size ambulatory physician practices. • AdvancedMD services over 22,500 practitioners across 8,000 practices in the U.S. and processes approximately 3.5 Enterprise Value: $700M EV / Rev: NA million insurance claims each month. • Global Payments acquisition of AdvancedMD represents a continuation of its strategy to bolster its vertical-specific Rev: NA EV / EBITDA: NA software portfolio to capture sticky payment volume across industries

Asset Management and Trading • Eze Software is a leading global provider of investment management software solutions designed to streamline operational workflows for hedge funds and assets managers • Eze Software serves more than 2,500 financial institutions across 45 countries and generated $280 million and $105 Enterprise Value: $1.45B EV / Rev: NA million in revenue and adjusted EBITDA, respectively, in 2017 • SS&C’s acquisition will strengthen its suite of technology solutions across both front- and back-office functions across Rev: NA EV / EBITDA: NA the financial services landscape and is expected to contribute $30 million in cost savings by 2021

Mobile Wallets and Gateways • LevelUp is a leading provider of omni-channel restaurant consumer engagement software, customer loyalty, and mobile payment solutions across the US • LevelUp serves over 200 enterprise brands across thousands of locations and facilitates orders and payments for Enterprise Value: $390M EV / Rev: NA millions of customers annually through a consolidated digital wallet • GrubHub’s acquisition of LevelUp extends its reach into restaurant point-of-sale integration solutions and strengthens its Rev: NA EV / EBITDA: NA ability to effectively attract and engage new and existing customers, respectively, to drive increased sales

B2B Transactions • Banking Circle is a leading provider of mission-critical online infrastructure for fast, compliant cross-border payments for banks, card entities, and payment gateways. • Headquartered in Denmark, Banking Circle expands the geographic reach of financial institutions and processes €60 Enterprise Value: $300M EV / Rev: NA billion in annual run-rate payment volume globally • EQT’s acquisition is intended to support growth initiatives, including strengthening of Banking Circle’s product portfolio Rev: NA EV / EBITDA: NA and expansion into new geographies as it continues to disrupt traditional solutions

TECHNOLOGY, MEDIA & TELECOM PAGE | 6 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

MOST ACTIVE STRATEGIC ACQUIRERS OF FINTECH ASSETS BY VOLUME4

• The 10 most active strategic fintech consolidators have acquired over 176 companies since 2012. 2 1 • This group completed 18 fintech acquisitions in 1 2 2 the first three quarters of 2018, just 8 1 3 1 4 2 transactions shy of their full-year total from 2017. 3 6 3 2 3 2 2 2 2 4 1 2 4 7 3 1 3 2 2 4 2 4 2 7 4 5 7 2 6 4 1 6 4 1 3 1 4 2 5 1 4 2 4 4 2 1 1 2 2 1 1 1 1

GLOBAL FINANCIAL SOFTWARE M&A ACTIVITY4

• Across financial software, there were 163 M&A transactions closed in 3Q 2018, with private equity transactions representing 27% of total deal volume. • Strategic and financial acquirers continue to 162 seek innovative financial technology solutions at 151 a pace consistent with prior quarters, a steady 125 119 trend that is underpinned by large, established 116 113 110 99 81 107 vendors aiming to augment their capabilities, 87 limit disintermediation, and drive internal operational efficiencies. 57 59 62 38 40 39 38 44 35 25 32

Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18

TECHNOLOGY, MEDIA & TELECOM PAGE | 7 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 – REPRESENTATIVE ENTERPRISE & COMMERCIAL SOLUTION PROVIDERS OTHER E&C FINANCIAL PAYMENTS SOFTWARE

To receive the latest Financial Technology market maps, please contact HW&Co. at [email protected]

SEE NEXT PAGE FOR VERTICAL PAYMENTS M A R K E T M A P D E T A I L

TECHNOLOGY, MEDIA & TELECOM PAGE | 8 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 – REPRESENTATIVE VERTICALLY - FOCUSED INTEGRATED SAAS AND PAYMENTS P ROVIDERS

• Emergence of digital payment gateways and card not present transactions.

• Software vendor addition of payment facilitator (PayFac) models.

To receive the latest Financial Technology market maps, please contact HW&Co. at • Increasing subscription and [email protected] recurring payments in B2C and B2B environments.

• Time sensitive and/or convenience driven.

• Payment processing bundled with software-based sale.

• Regulatory specific reporting and compliance.

• Meaningful payment processing volumes.

Note: Logos are representative of vertical participants and not comprehensive.

TECHNOLOGY, MEDIA & TELECOM PAGE | 9 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 –

VALUATION1 As of September 30th, 2018 ($ in millions)

B2B TRANSACTIONS

Western Union WU $11,153 $8,525 85.8% (0.7%) 4.7% 2.9% 2.8% 24.5% 2.0x 1.9x 8.0x 7.8x NA Open Text Corporation OTEX-CA $12,110 $10,185 94.4% 18.1% 67.2% 12.4% 3.6% 36.4% 4.2x 4.1x 11.6x 10.9x 42.5x Cass Information Systems CASS-US $684 $801 87.4% 12.9% 49.2% NA NA NA NA NA NA NA 29.1x Basware BAS1V-FI $602 $596 72.2% (12.6%) (1.1%) (11.6%) 7.7% 3.9% 3.7x 3.4x 93.9x 85.2x NA FleetCor Technologies FLT $24,684 $20,139 99.0% 47.2% 65.2% 6.8% 9.4% 56.8% 10.3x 9.4x 18.1x 16.2x 25.3x WEX WEX $10,921 $8,651 98.7% 78.9% 128.8% 17.1% 11.7% 42.4% 7.5x 6.7x 17.6x 15.4x 43.1x

PAYMENTS Visa V $357,068 $327,275 99.6% 42.6% 114.4% 12.0% 11.1% 70.8% 16.8x 15.2x 23.8x 21.0x 38.0x Mastercard MA $231,175 $228,188 99.2% 57.7% 145.4% 19.6% 12.8% 59.5% 15.5x 13.7x 26.0x 22.7x 49.9x American Express AXP $119,906 $91,694 95.3% 17.7% 44.1% 20.4% 6.6% NA 3.0x 2.8x NA NA 28.1x Discover Financial Services DFS $37,501 $26,196 93.3% 18.6% 47.7% 8.1% 6.7% NA 3.5x 3.3x NA NA 12.1x First Data Corporation FDC $44,319 $13,804 91.9% 35.6% NA (22.1%) 5.6% 35.5% 4.7x 4.5x 13.3x 12.4x 13.8x Alliance Data Systems ADS $33,182 $12,976 84.8% 6.6% (10.0%) 5.4% 8.5% 25.8% 4.1x 3.8x 15.8x 14.4x 14.8x Worldpay WP-US $37,658 $30,560 99.4% 43.7% 121.7% 85.0% 9.9% 47.9% 9.6x 8.7x 20.0x 17.2x NA Global Payments GPN $24,306 $20,153 98.6% 34.1% 118.6% 11.4% 10.0% 35.2% 6.2x 5.6x 17.6x 15.8x 36.7x Total System Services TSS $21,741 $18,012 98.4% 50.7% 115.5% 12.1% 6.8% 35.2% 5.7x 5.3x 16.2x 14.9x 28.1x Cielo CIEL3-BR $10,193 $8,334 34.2% (55.9%) (52.2%) (19.6%) 4.4% 42.1% 3.5x 3.3x 8.2x 7.8x 8.6x Euronet Worldwide EEFT $5,131 $5,114 96.2% 5.7% 34.0% 13.4% 12.3% 19.0% 2.0x 1.8x 10.6x 9.1x 37.4x

FINANCIAL SOFTWARE Automatic Data Processing ADP $66,617 $65,905 99.6% 37.8% 86.3% 6.9% 6.4% 22.4% 4.8x 4.6x 21.6x 19.0x 41.2x Paychex PAYX $26,158 $26,491 97.3% 22.8% 53.0% 6.8% 6.1% 42.1% 7.5x 7.0x 17.7x 16.9x 28.5x Ultimate Software Group ULTI $9,849 $10,052 96.9% 69.9% 78.5% 21.0% 19.0% 24.2% 8.7x 7.3x 35.7x 29.0x 270.7x Paycom Software PAYC-US $9,106 $9,111 94.7% 107.3% 331.9% 28.4% 23.2% 41.9% 16.4x 13.3x 39.1x 32.1x 87.8x Paylocity PCTY $4,271 $4,238 90.8% 64.5% 169.7% 22.5% 20.7% 25.2% 10.3x 8.5x 40.8x 29.6x 114.7x WageWorks WAGE $1,073 $1,694 65.0% (29.6%) (3.6%) 3.2% 4.8% 30.1% 2.2x 2.1x 7.2x 6.5x 36.5x Moody's MCO $36,629 $32,086 88.9% 20.1% 71.5% 10.1% 6.7% 48.2% 7.9x 7.4x 16.4x 15.2x 29.8x Thomson Reuters TRI $39,544 $31,919 94.0% (0.4%) 13.3% (51.4%) 7.0% 23.1% 7.2x 6.7x 31.1x 29.0x 27.3x Experian EXPN-GB $27,156 $23,500 98.8% 27.8% 57.7% 5.5% 6.3% 34.2% 5.6x 5.3x 16.4x 15.3x 29.1x Equifax EFX $18,213 $15,722 94.1% 23.2% 32.7% 3.2% 5.5% 32.9% 5.2x 5.0x 15.9x 14.5x 31.5x TransUnion TRU $18,128 $13,590 92.6% 55.7% 199.8% 20.8% 14.1% 38.9% 7.8x 6.8x 20.0x 17.4x 31.7x

TECHNOLOGY, MEDIA & TELECOM PAGE | 10 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 –

SELECT RECENT M&A TRANSACTIONS1

09/27/2018 SICOM Global Payments Provider of cloud-based payment processing and customer engagement software for restaurants. $415

09/24/2018 Quorom Software Thoma Bravo Provider of finance, operations, and accounting software for energy companies. NA

09/17/2018 Vivonet Infor Provider of cloud-based POS systems and back office reporting solutions. for the hospitality industry. NA

09/10/2018 Personify Pamlico Capital Provider of customer engagement and financial management solutions for nonprofit organizations. NA

09/10/2018 Tuxedo Money Solutions Payment Cloud Technologies Provider of prepaid and alternative payment solutions for international businesses. $92

09/06/2018 Alegeus Vista Equity Partners Provider of a consumer healthcare funding platform. NA

09/05/2018 AdvancedMD Global Payments Provider of practice management, patient engagement, and payment processing solutions. $700

09/04/2018 Electronic Transaction Systems Elavon Provider of digital payments, online transactions, and merchant processing services. NA

08/24/2018 ClearPay Finance Afterpay Touch Group Provider of omni channel payment processing solutions for the retail industry. $13

08/15/2018 ExakTime Providence Strategic Growth Provider of a time tracking platform designed for employers to manage their mobile workforce. NA

08/15/2018 Transax Pineapple Payments Provider of API-driven payment technology tools for integrated software vendors. NA

08/08/2018 Behalf Visa Provider of on-demand commercial credit solutions for small businesses. NA

07/24/2018 Therapy Brands Lightyear Capital / Oak HC/FT Provider of behavioral health practice management and revenue cycle management solutions. NA

07/09/2018 Banking Circle EQT Provider of a cross-border B2B payments platform. $300

06/19/2018 Hyperwallet Systems, Inc. PayPal Holdings, Inc. Provider of a payment platform designed to help businesses with electronic payments. $400

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS4

09/27/2018 Stripe Tiger Global Management Provider of an online payment platform to integrate electronic transactions. $245

09/20/2018 Gusto MSD Capital, Dragoneer Investment Group Provider of a cloud-based payroll, benefits and human resource management platform. $140

09/06/2018 Sitetracker New Enterprise Associates Provider of enterprise project and asset management solutions. $28

09/03/2018 Salary Finance Legal & General Group, Blenheim Chalcot Provider of employee benefit solutions for financial planning. $20

08/23/2018 ThinkHR Guidepost Growth Equity Provider of a cloud-based human resource and compliance software platform. $68

08/21/2018 Financial Information Technologies Luminate Capital Partners, TA Associates Provider of data, payment processing, and software services for the beverage alcohol industry. NA

08/20/2018 Previse Augmentum Capital, Bessemer Ventures Provider of a financial platform designed to analyze contract payments utilizing artificial intelligence. $7

08/13/2018 Skyline AI Sequoia Capital Israel, TLV Partners Provider of a commercial real estate platform. $18

08/10/2018 ScaleFactor Canaan Partners Provider of a SaaS-based finance and accounting platform for small businesses. $10

08/06/2018 Namely GGV Capital Provider of a human capital management platform for payroll and benefits. $60

08/03/2018 Stampli SignalFire Provider of cloud-based interactive invoice management solutions. $7

08/02/2018 Holberg Financial West Loop Ventures Provider of a B2B employee financial education and benefits platform. $1

07/31/2018 BlueVine M12 Provider of line of credit and invoice factoring solutions to small businesses. $12

07/24/2018 TradeGecko TNB Ventures Provider of a cloud-based inventory management SaaS platform to automate workflows. $10

07/17/2018 PPRO Financial Citi Ventures, PayPal, HPE Growth Capital Provider of electronic payment services and alternative payment options for corporations. $50

TECHNOLOGY, MEDIA & TELECOM PAGE | 11 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 – REPRESENTATIVE INSTITUTIONAL SOLUTION PROVIDERS

To receive the latest Financial Technology market maps, please contact HW&Co. at [email protected]

TECHNOLOGY, MEDIA & TELECOM PAGE | 12 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 –

VALUATION1 As of September 30th, 2018 ($ in millions)

BANKING

Fidelity National Information Services FIS $44,634 $35,865 98.4% 16.8% 61.4% (6.7%) 3.3% 37.1% 5.2x 5.1x 14.1x 13.2x 25.4x Fiserv FISV $38,761 $33,358 100.0% 27.8% 88.3% 2.3% 4.5% 38.1% 6.7x 6.4x 17.5x 16.8x 24.1x Temenos TEMN-CH $12,216 $11,579 88.2% 59.6% 290.0% 14.7% 12.6% 38.4% 14.5x 12.9x 37.7x 32.7x 75.5x Jack Henry & Associates JKHY $12,388 $12,355 97.8% 55.7% 129.8% 8.7% 8.8% 35.7% 7.9x 7.3x 22.3x 20.9x 33.0x CoreLogic CLGX $5,796 $3,999 88.6% 6.9% 32.8% 0.2% 1.1% 26.8% 3.1x 3.1x 11.7x 11.2x 22.6x Oracle Financial Services Software 532466-IN $4,232 $4,626 78.6% (2.8%) (9.9%) 3.0% 7.4% 42.3% 6.1x 5.7x 14.4x 12.9x 26.3x ACI Worldwide ACIW $3,872 $3,257 97.1% 23.5% 34.3% 1.4% 4.4% 24.9% 3.7x 3.6x 14.9x 12.8x 2,814.0x Q2 Holdings QTWO $2,476 $2,596 90.2% 45.4% 148.3% 23.1% 23.8% 9.7% 10.4x 8.4x NM 69.5x NA Bottomline Technologies EPAY $2,878 $3,083 99.1% 128.4% 202.1% 10.5% 9.3% 24.0% 7.0x 6.4x 29.2x 25.9x 303.0x

INSURANCE

Guidewire Software GWRE $7,087 $8,142 93.7% 29.7% 91.8% 21.3% 14.3% 19.4% 10.1x 8.9x 52.2x 47.5x NA Ebix EBIX $3,015 $2,493 88.8% 21.3% 217.5% 35.4% 19.6% 34.1% 6.1x 5.1x 17.9x 15.0x 23.6x Sapiens International SPNS $681 $658 91.4% 0.1% 18.5% 5.7% 5.7% 14.6% 2.4x 2.2x 16.2x 14.3x 60.0x

ASSET MANAGEMENT & TRADING RELX REL-GB $50,459 $41,599 88.8% (4.0%) 24.3% (5.4%) 4.6% 34.7% 5.2x 4.9x 14.9x 14.1x 19.6x Moody's MCO $36,629 $32,086 88.9% 20.1% 71.5% 10.1% 6.7% 48.2% 7.9x 7.4x 16.4x 15.2x 29.8x Thomson Reuters TRI $39,544 $31,919 94.0% (0.4%) 13.3% (51.4%) 7.0% 23.1% 7.2x 6.7x 31.1x 29.0x 27.3x MSCI MSCI $17,454 $15,760 96.3% 51.8% 206.1% 13.1% 9.0% 54.6% 12.1x 11.1x 22.2x 20.0x 42.7x SS&C Technologies Holdings SSNC $19,579 $13,619 93.2% 41.5% 58.6% 101.5% 27.4% 34.1% 5.8x 4.5x 16.9x 12.8x 54.6x FactSet Research Systems FDS $9,146 $8,581 94.3% 24.2% 39.9% 9.1% 6.2% 32.2% 6.6x 6.2x 20.6x 18.4x 34.3x Fair Isaac Corporation FICO $7,761 $6,661 94.8% 62.7% 169.0% 9.9% 8.4% 30.3% 7.4x 6.8x 24.4x 21.2x 54.7x Broadridge Financial Solutions BR $16,676 $15,349 95.4% 63.3% 140.0% 4.1% 3.9% 20.5% 3.8x 3.6x 18.5x 17.6x 37.1x Fidessa group FDSA-GB $1,836 #VALUE! 85.4% 67.2% 89.2% NA NA NA NA NA NA NA 41.6x

TECHNOLOGY, MEDIA & TELECOM PAGE | 13 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 –

SELECT RECENT M&A TRANSACTIONS1

09/27/2018 Augeo FI Loyalty Lightyear Capital Provider of customized loyalty program solutions for middle-market banks and credit unions. $140

09/06/2018 Intralinks Holdings SS&C Technologies Provider of secure collaboration software and secure online document sharing solutions. $1,500

08/21/2018 CourtesyConnect Velocity Solutions Provider of automated overdraft management solutions. NA

08/16/2018 First Data (Remittance Processing Business) WAUSAU Financial Services Provider of remittance processing solutions. $93

08/15/2018 Zensurance Travelers Companies Provider of an online commercial insurance brokerage portal designed to digitize businesses. $12

08/14/2018 DealCloud Intapp Provider of a CRM and deal management solutions for investors and M&A advisory professionals. NA

08/14/2018 Progressa Canaccord Genuity, Eight Capital Provider of a financial platform for consumer loans. $84

08/08/2018 Cloud Lending Solutions Q2 Holdings Provider of a cloud-based, end-to-end lending platform for financial institutions. $105

07/31/2018 Eze Software SS&C Technologies Provider of investment management software designed to optimize alpha. $1,450

07/10/2018 European Bank for Financial Services FNZ, General Atlantic, H.I.G. Capital Provider of brokerage and investment services. $177

07/03/2018 Taliance Altus Group Provider of alternative investments portfolio software. $23

06/19/2018 Drilling Info, Inc. Genstar Capital LLC Provider of SaaS and data analytics services for the oil and gas industry. NA

06/13/2018 MeridianLink, Inc. Thoma Bravo LLC Provider of a data driven credit reporting and lending platform. NA

06/06/2018 IntelliFlo Ltd. Invesco Ltd. Provider of a practice management software designed to help financial advisers. $22

06/05/2018 CentrumDirect Ltd. Ebix, Inc. Provider of an online foreign exchange store that helps with overseas travel. $175

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS4

09/06/2018 Monese Kinnevik Provider of an application platform intended to offer digital banking services. $60

09/04/2018 SynapseFi Undisclosed Provider of low cost finance products and banking solutions. NA

08/30/2018 Pagaya Oak HC/FT, Harvey Golub Provider of a data-driven investment platform for online lending and credit marketplaces. $14

08/29/2018 Apperio Draper Esprit Provider of a legal spend management and analytics platform. $10

08/28/2018 GDS Link Serent Capital Provider of technology, analytical, and consulting solutions for the lender market. NA

08/15/2018 Axoni Nyca Partners, Goldman Sachs Provider of distributed ledger technology for capital markets. $32

08/15/2018 Deposit Solutions Vitruvian Partners Provider of an open banking platform designed to connect banks and depositors across Europe. $100

07/31/2018 Cloud9 Technologies Barclays Provider of a cloud-based trader communication platform. $14

07/30/2018 Equidate Financial Technology Partners Provider of an online trading platform designed to bring liquidity to illiquid assets. $50

06/13/2018 Quovo Portag3 Ventures Provider of a data platform enabling connectivity to consumer financial accounts. $20

06/07/2018 Ant Financial Warburg Pincus, General Atlantic Provider of cloud-based financial and computing services for financial institutions. $14,000

05/31/2018 Chime Menlo Ventures, Northwestern Mutual Provider of consumer-friendly online banking services with no bank fees. $70

05/21/2018 Bestow Valar Ventures Provider of an on-demand life insurance platform. $15

05/21/2018 TradingView Insight Venture Partners Provider of social networking and data analysis tools for financial markets. $37

05/09/2018 At-Bay Khosla Ventures, Lightspeed Ventures Provider of a cyber insurance and risk management platform. $13

TECHNOLOGY, MEDIA & TELECOM PAGE | 14 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 – REPRESENTATIVE CONSUMER SOLUTION PROVIDERS

To receive the latest Financial Technology market maps, please contact HW&Co. at [email protected]

TECHNOLOGY, MEDIA & TELECOM PAGE | 15 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 –

VALUATION1 As of September 30th, 2018 ($ in millions)

PEER TO PEER

PayPal PYPL $102,619 $103,974 93.7% 37.2% 179.0% 17.8% 16.4% 25.8% 6.7x 5.7x 25.8x 21.6x 52.6x Square SQ $39,353 $29,863 98.6% 243.7% NA 57.0% 40.3% 16.3% 25.5x 18.2x NM 88.4x NA Western Union WU $11,153 $8,525 85.8% (0.7%) 4.7% 2.9% 2.8% 24.5% 2.0x 1.9x 8.0x 7.8x NA Green Dot Corporation GDOT $3,768 $4,669 97.1% 79.1% 424.3% 16.0% 9.7% 23.9% 3.7x 3.3x 15.3x 13.4x 38.1x LendingClub LC $3,655 $1,642 59.1% (36.3%) (70.5%) 21.2% 17.9% 12.3% 5.3x 4.5x 42.5x 27.2x NA On Deck Capital ONDK $1,236 $565 80.4% 62.1% (19.3%) 9.5% 11.2% 9.1% 3.2x 2.9x 35.3x 25.8x 151.4x

PERSONAL FINANCE & MOBILE WALLETS

Intuit INTU $58,073 $58,822 98.9% 60.0% 155.9% 13.3% 9.6% 36.7% 9.3x 8.5x 25.3x 23.3x 50.3x Apple AAPL $1,155,763 $1,090,307 98.3% 46.5% 106.0% 12.7% 5.3% 30.8% 4.3x 4.1x 14.0x 13.4x 20.5x Amazon AMZN $1,019,532 $976,945 97.7% 108.4% 284.7% 32.1% 22.0% 13.7% 4.3x 3.6x 31.8x 24.8x 158.9x Microsoft MSFT $838,173 $877,014 99.2% 53.5% 156.4% 12.6% 10.8% 41.8% 7.2x 6.5x 17.2x 15.1x 53.7x Facebook FB $439,548 $396,625 75.2% (3.8%) 80.8% 37.0% 24.9% 58.7% 7.9x 6.3x 13.5x 11.4x 25.4x

TECHNOLOGY, MEDIA & TELECOM PAGE | 16 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018 –

SELECT RECENT M&A TRANSACTIONS1

09/13/2018 LevelUp GrubHub Provider of digital ordering, payments, and loyalty solutions for restaurants. $390

08/09/2018 iCrowdU AB International Group Provider of a crowdfunding platform. $10

07/24/2018 ClearScore Experian Provider of a free credit reporting and analytics platform. $362

05/12/2018 Ovation Credit Services, Inc. LendingTree, Inc. Provider of credit report, credit report repair, and correction consulting services. $21

05/08/2018 Seedly Pte Ltd. ShopBack Pte Ltd. Provider of a finance management platform to help users with their budget. NA

05/08/2018 Orchard App, Inc. Kabbage, Inc. Provider of a P2P investment-analytics services, focused on the online lending industry. NA

05/07/2018 Paytronage Lumni Provider of a direct-to-consumer marketplace for income share agreements. NA

05/03/2018 CLIC Technology FNTT Provider of a crowdfunding platform designed to advertise start-ups that need funding. NA

04/04/2018 Clarity Money, Inc. Goldman Sachs Bank USA (New York) Provider of a finance application designed to help in managing personal finances. NA

04/02/2018 YouCaring GoFundme, Inc. Provider of a fundraising platform to raise money for humanitarian causes. $55

03/15/2018 ClearScore Experian Provider of credit reporting and credit scoring solutions. $384

03/14/2018 Penny Credit Karma Provider of a personal finance application to track cash and spending habits. NA

11/14/2017 Jwaala Alogent Corp. Provider of online banking services. NA

11/13/2017 Credit Shop Varde Partners Provider of personal loan solutions for consumers. NA

11/07/2017 Vault Investments Acorns Grow Provider of a digital investing platform for small business retirement plans. NA

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS4

09/19/2018 Scratch Index Ventures Provider of a loan servicer system for borrowers and lenders. $17

09/18/2018 Divido Dawn Capital, DN Capital Provider of an online retail finance platform. $15

09/11/2018 Bloom Credit Resolute Ventures Provider of financial eligibility analysis technology solutions. $2

08/29/2018 AirTM BlueYard Capital Provider of an online money-transfer network platform. $7

08/23/2018 Metromile Pivotal Capital Partners Provider of a pay-per-mile car insurance platform. NA

08/23/2018 Upgrade CreditEase Provider of a consumer credit platform. $62

08/22/2018 Root Insurance Tiger Global Management Provider of a personalized car insurance platform. $100

08/08/2018 OpenInvest QED Investors Provider of a socially responsible investing platform. $10

08/01/2018 Radar Relay Blockchain Capital Provider of a cryptocurrency-based peer-to-peer trading platform. $13

08/01/2018 FloodFlash LocalGlobe, Pentech Ventures Provider of event-based flood insurance solutions. $2

07/27/2018 CrowdStreet Grotech Capital Provider of an online commercial real estate investment marketplace. $8

07/26/2018 Tally Kleiner, Perkins, Caufield & Byers Provider of a credit management platform. $25

07/25/2018 Applied Data Finance MAI Capital Management Provider of a consumer financial platform intended for lending money. $145

07/25/2018 By Miles Jamjar Investments Provider of a pay-per-mile car insurance platform. $8

05/31/2018 Nova Credit General Catalyst, Index Ventures Provider of cross-border consumer credit reporting services. $16

TECHNOLOGY, MEDIA & TELECOM PAGE | 17 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

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TECHNOLOGY, MEDIA & TELECOM PAGE | 18 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

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TECHNOLOGY, MEDIA & TELECOM PAGE | 19 FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2018

Sources

1. FACTSET .

2. PNC CAPITAL MARKETS.

3. S&P LCD STATS.

4. PITCHBOOK .

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