March 2013 M&A and Investment Summary
Expertise. Commitment. Results.
M&A & INVESTMENT SUMMARY MARCH 2013 1 TABLE OF CONTENTS
Overview of Monthly M&A and Investment Activity 3 Monthly M&A and Investment Activity by Industry Segment 8 Additional Monthly M&A and Investment Activity Data 42 About Petsky Prunier 54
Securities offered through Petsky Prunier Securities, LLC, member of FINRA.
This M&A and Investment Summary has been prepared by and is being distributed in the United States by Petsky Prunier, a broker dealer register with the U.S . SEC and a member of FINRA. Petsky Prunier is not affiliated with Altium Capital Ltd, but has partnered with Altium to expand its international presence. Altium has not prepared or verified the information in this Summary. Persons in the United States should contact Petsky Prunier for further information or services. This M&A and Investment Summary is not being distributed by Altium Capital Ltd in the United States and Altium Capital Ltd is not offering any services to persons in the United States.
M&A & INVESTMENT SUMMARY MARCH 2013 2 M&A AND INVESTMENT SUMMARY FOR ALL SEGMENTS Transaction Distribution • A tot al of 336 deal s were announced in March 2013, of whi ch 201 report ed $8.7 billion in val ue • Digital Media/Commerce was the most active segment with 73 transactions, of which 48 reported $1.1 billion in value • Traditional Media was the highest reported value segment, with 18 transactions announced, of which 11 announced $4.1 billion in value • Strategic buyers announced 155 deals (46 percent of total volume), of which 43 reported $4.1 billion in value • VC/Growth Capital investors announced 171 deals, of which 156 reported $4.6 billion in value • Buyout investors announced 10 deals during the month
MARCH 2013 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Media/Commerce 73 22% 1,131.5 13% 30 830.1 0 - 43 301.4 Marketing Technology 68 20% 548. 0 6% 21 270. 6 0 - 47 277. 5 Software 51 15% 907.2 10% 28 686.0 2 5.4 21 215.8 Digital Advertising 38 11% 151.0 2% 18 35.5 1 - 19 115.5 Technology 30 9% 704.0 8% 11 491.4 0 - 19 212.6 Information & Business Services 22 7% 790.2 9% 9 742.0 3 - 10 48.2 Traditional Media 18 5% 4,145.4 48% 12 787.5 2 - 4 3,357.9 Agency 14 4% 27. 8 0% 13 27. 7 1 010.1 0 - Marketing Services 12 4% 7.5 0% 7 - 1 - 4 7.5 Communications 10 3% 244.0 3% 6 215.0 0 - 4 29.0 Total 336 100% 8,656.6 100% 155 4,085.8 10 5.5 171 4,565.4
M&A & INVESTMENT SUMMARY MARCH 2013 3 M&A AND INVESTMENT SUMMARY FOR ALL SEGMENTS Transaction Distribution • On a month -over-month basi s, vol ume and report ed val ue increased 12 percent and 43 percent , respecti vel y • Activity in the Digital Advertising and Marketing Technology segments increased by the highest margins from the previous month, with 12 and 11 additional transactions announced during the month • The largest control transaction announced in March was Temp Holdings’ $742 million acquisition of Intelligence Holdings, a Japan-based temporary staffing agency • The largest investment during the month was Liberty Media’s $2.6 billion purchase of a 27 percent stake in cable services provider Charter Communications, from Oaktree Capital Management, Crestview Partners, and Apollo Global Management, at a valuation of $22.6 billion
M&A and Investment Volume For All Segments - Last 13 Months ($BN) All transactions; Value based on reported values only
25.0 $22.4
$19.1 20.0 $15.3 $15.9 2 15.0 $12.8 $11.7 3 5 $9.5 $9.8 $9.9 3 2 $8.5 $8.7 10.0 7 $7.1 $6.1 2 2 3 2 1 5.0 5 1
377 381 377 376 402 401 342 409 298 335 - 305390 253 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13
Deals valued over $1BN
M&A & INVESTMENT SUMMARY MARCH 2013 4 SELECTED TRANSACTIONS WITH VALUATION INFORMATION DISCLOSED
($ in Millions)
Selected Transactions With Multiples Information
Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA
Marketing Technology altosoft Corporation BI Tools Kofax, Inc. $13.5 $3.4 - 4.0x NM Agency/Consulting Amaze plc Digit al Agenc y St. Ives Marketing Services 22. 8 - 252.5 * NA 91x9.1x Traditional Media Charter Communications(1 ) Cable & Satellite Television Liberty Media Corporation 22,580.9 7,500.0 2,600.0 3.0x 8.7x Sky Network Television Ltd.(2 ) Cable & Satellite Television (Unnamed Fund Contibuters) 1,968.6 711.1 283.4 2.8x 6.9x Outdoor Channel Holdings Broadcast Television Kroenke Sports Enterprise 227.0 77.3 9.1 2.9x 24.9x Technology Tensilic a Infrastruc ture Technology Cadenc e Design Systems, Inc . 380.0 44.0 - 8.6x NM
Communications Kentrox, Inc. Networking Equipment Westell Technologies, Inc. 30.0 30.0 - 1.0x NM Arieso Software Defined Networking JDS Uniphase Corporation 85.0 20.7 1.8 * 4.1x 47.8x
Software Computer Software Holdings Financial Software Advanced Computer Software Group plc 164.2 100.0 21.5 1.6x 7.7x Melbourne IT Digital Brand Servic es Inc . Legal Software Corporation Servic e Company 157.3 56.9 9.8 * 2.8x 16.0x nCircle Network Security, Inc. Security Software Tripwire, Inc. 100.0 40.0 - 2.5x NM
IPOs After Final Pricing Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Marketing Technology Marin Software Online Targeting/Optimization IPO $324.9 $84.3 $5.0 3.9x 65.0x Software Model N, Inc. Financial IPO 425.0 59.6 (22.0) 7.1x NM Information & Business Services Professional Diversity Network LLC HR Information IPO 49. 8 616.1 282.8 82x8.2x 17. 8x
* EBITDA represented by EBIT proxy
(1) Charter Communications sold a 27 percent stake to Liberty Media for $2.6 billion (2) Sky Network Television sold a 44 percent stake to unnamed fund contributors for $671 million
Note: IPO multiples based on TTM financials and pro forma balance sheets per latest Registration Filing
M&A & INVESTMENT SUMMARY MARCH 2013 5 SECURITIES IN REGISTRATION ($ in Millions)
Aggre gate LTM Date Company Name Segment Offering Value Rev EBITDA
Mar-13 Blackhawk Network Holdings, Inc. Technology $200.0 $959.1 $92.3
Mar-13 Rally Software Development Corp. Software 70.0 52.6 (7.8)
Feb-13 Oisix Co., Ltd Digital Media/Commerce 9.0 NA NA
Feb-13 QQguintiles Transnational Holdings Inc. Information & Business Services 600.0 3,692.3 486.2
Feb-13 Softmax Co., Ltd Softw are 7.0 NA NA
Jan-13 Channel Nine Entertainment Limited Traditional Media 2.2 NA NA
Oct-12 Violin Memory, Inc. Technology NA 100.0 NA
Aug-12 Just Dial Limited Digital Advertising NA 48.8 13.0
J12Jun-12 golden Tec h SA SftSoftware 525.2 NA NA
Jun-12 Shanghai Amarsoft Information Technology Software NA NA NA
Apr-12 BlackStratus, Inc. Software 20.0 9.2 (0.6)
Apr-12 NSFOCUS Information Technology Co., Ltd. Communications NA NA NA
Apr-12 Shenzhen Tinno Mobile Technology Corp. Communications 451.0 NA NA
Mar-12 Exponential Interactive, Inc. Digital Advertising 75.0 169.1 22.0
Mar-12 Reval Holdings, Inc. Software 75.0 47.0 (12.1)
M&A & INVESTMENT SUMMARY MARCH 2013 6 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 Mar 28, 2013 1st Trading Day Mar-13 MRIN Marin Software United States $11.00-$13.00 $14.00 16.26, up 16% $16.43 1.0% Mar-13 MODN Model N, Inc. United States 12.50-14.50 15.50 18.45, up 19% 19.85 7.6% Mar-13 IPDN Professional Diversity Network LLC United States 10.00-12.00 8.00 7.67, down 4% 6.65 (13.3%) Feb-13 DGS Digital Globe Services, Ltd. United States No Range 2.47 2.59, up 5% 2.51 (3.1%) Feb- 13 XOOM Xoom Corporation United States 13.00- 15.00 16.00 25.49, up 59% 22.64 (11.2%) Nov-12 3666 Tecnos Japan Incorporated Japan 16.77-18.72 18.72 27.66, up 48% 30.51 10.3%
Nov-12 YY YY, Inc. China 10.50-12.50 10.50 11.31, up 8% 17.40 53.8% Oct-12 RKUS Ruckus Wireless, Inc. United States 13.00-15.00 15.00 12.25, down 18% 21.48 75.3% Oct-12 FLTX Fleetmatics Group Limited United States 15.00-17.00 27.00 22.30, up 31% 24.01 7.7% Oct-12 RLGY Realogy Holdings Corp. United States 23.00-27.00 27.00 34.20, up 27% 48.97 43.2% Ot12Oct-12 SSTK Shu tters toc k, Inc. UitdUnited SttStates 13. 00- 15. 00 17. 00 21. 66, up 27% 44. 65 106. 1% Oct-12 WDAY Workday, Inc. United States 24.00-26.00 28.00 48.69, 74% 61.25 25.1%
Sep-12 TRLA Trulia, Inc. United States 14.00-16.00 17.00 24.00, up 41.8% 31.43 31.0% Aug-12 PFMT Performant Financial Corporation United States 12.00-14.00 9.00 10.60, down 18% 12.25 15.6% Jul-12 EOPN E2open, Inc. United States 15.00-17.00 15.00 13.50, down 10% 20.25 50.0% Jul-12 KYAK Kayak Software United States 22.00-25.00 26.00 33.18, up 28% 40.00 20.6% Jul-12 PANW Palo Alto Networks United States 38.00-40.00 42.00 53.13, up 27% 57.02 7.3% Jun-12 DB:VWA Vange Software Group AG Switzerland 33.05-39.41 33.05 32.69, down 1% 12.20 (62.7%) May-12 ADNC Audience, Inc. United States 14.00-16.00 17.00 19.10, up 12.4% 15.02 (21.4%)
May-12 FB Facebook United States 36.00-38.00 38.00 38.23, flat 25.55 (33.2%) May-12 WAGE WageWorks, Inc. United States 10.00-12.00 9.00 12.60, up 40% 24.55 94.8% Apr-12 A149940 Modacom Co., Ltd. South Korea 6.24-7.58 6.24 6.76, up 8% 6.91 2.2% Apr-12 300353 Kyland Technology Co., Ltd. China No Range 3.29 3.49, up 6% 4.33 24.0% Apr-12 AQ Acquity Group Hong Kong 6.00-8.00 6.00 5.77, down 4% 6.38 10.6% Apr-12 GWAY Greenway Medical Technologies United States 11.00-13.00 10.00 13.29, up 33% 15.85 19.3%
Apr-12 BLOX Infloblox United States 12.00-14.00 16.00 21.30, up 33% 21.19 (0.5%) Apr-12 PFPT Proofpoint, Inc. United States 10.00-12.00 13.00 14.10, up 8% 16.78 19.0% Apr- 12 SPLK Splunk, Inc. United States 11. 00- 13. 00 17. 00 35. 48, up 109% 40. 00 12. 7%
M&A & INVESTMENT SUMMARY MARCH 2013 7 DIGITAL MEDIA/COMMERCE Transactions by Subsegment and Buyer Type
• eCommerce was the most active and highest reported value subsegment with 24 transactions announced, of which 16 announced $176 million in value • Select acquisitions › Avito.ru’s $570 million acquisition of Russia-based online classifieds websites Slando.ru and OLX.ru, from Naspers › Dropbox’ $100 million acquisition of Mailbox, which offers an email inbox app for mobile devices › Yahoo’s $30 million acquisition of UK-based Summly, which offers a mobile news gathering and delivery app, and its acquisition of Jybe, a company offering a mobile app that recommends movies, books, and restaurants based on data contained in social networks • Select investments › The $30 million investment in Bonobos, an online retailer of men’s clothing, led by Glynn Capital Management and Mousse Partners › The $20 million investment in Farfetch.com, an online marketplace for independent boutiques, led by Condé Nast
DIGITAL MEDIA/COMMERCE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM eCommerce 24 33% 176.4 16% 8 20.0 0 - 16 156.4 Social Media/Apps 16 22% 123.8 11% 5 100.0 0 - 11 23.8 Mobile Content/Apps 15 21% 145.5 13% 9 134.0 0 - 6 11.5 Classifieds/Auctions/P-to-P 7 10% 645.1 57% 2 570.0 0 - 5 75.1 Niche Content 6 8% 27.6 2% 4 2.6 0 - 2 25.0 Gaming 5 7% 13.2 1% 2 3.5 0 - 3 9.7 Total 73 100% 1,131.5 100% 30 830.1 0 0.0 43 301.4
M&A & INVESTMENT SUMMARY MARCH 2013 8 DIGITAL MEDIA/COMMERCE PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Web Search/Portals Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AOL Inc. United States 38.49 -12% 2,971.9 2,624.3 466.6 105.9 2,191.7 471.5 21.5% -0.5% 1.2x 5.6x Baidu, Inc . China 87.70 -43% 30,664.9 27,555.2 5,211.5 1,915.7 3,578.5 1,992.0 55.7% 53.8% 7.7x 13.8x Google Inc. United States 794.19 -6% 261,814.6 220,936.6 48,088.0 7,210.0 50,175.0 16,278.0 32.4% 32.4% 4.4x 13.6x Yahoo! Inc. United States 23.53 -1% 25,912.4 21,810.8 4,184.0 37.0 4,986.6 1,315.1 26.4% 0.0% 4.4x 16.6x Yandex N.V. * Netherlands 23.14 -45% 8,686.7 8,289.5 397.2 - 941.9 406.2 43.1% 43.6% 8.8x 20.4x
Adjusted Weighted Average 4.8x 13.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (19.4x)
eCommerce Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 1-800-Flowers.com Inc. United States 4.97 -3% 321.7 316.5 27.0 21.8 733.1 40.8 5.6% 5.0% 0.4x 7.7x Amazon.com Inc. United States 266.49 -6% 121,133.3 114,070.3 11,448.0 4,385.0 61,093.0 2,508.0 4.1% 27.1% 1.9x 45.5x Blue Nile Inc . United States 34.45 -21% 429.4 343.1 87.0 0.7 400.0 13.7 3.4% 14.9% 0.9x 25.1x Bluefly Inc . United States 0.80 -58% 22.9 23.8 1.3 2.3 97.6 (23.2) NM 2.2% 0.2x NM CafePress Inc. United States 6.01 -74% 102.9 66.0 40.6 3.7 217.8 13.4 6.2% 24.1% 0.3x 4.9x eBay Inc. United States 54.22 -5% 70,224.6 65,335.6 9,408.0 4,519.0 14,072.0 4,119.0 29.3% 20.8% 4.6x 15.9x E-Commerce China Dangdang Inc. China 4.15 -63% 332.7 280.5 148.4 96.3 833.2 (74.5) NM 43.5% 0.3x NM Expedia Inc. United States 60.02 -12% 8,205.9 7,626.2 1,938.1 1,249.3 4,030.3 642.7 15.9% 16.9% 1.9x 11.9x Hollywood Media Corp. United States 1.25 -17% 29.0 23.0 6.0 0.0 3.4 (4.4) NM 80.9% 6.9x NM HSN, Inc . United States 54.86 -10% 2,973.2 3,001.9 222.1 250.8 3,266.7 284.0 8.7% 6.4% 0.9x 10.6x Jiayuan.com International Ltd. China 5.05 -69% 159.9 78.7 81.1 - 65.9 9.9 15.0% 24.0% 1.2x 8.0x Liquidity Servic es, Inc . United States 29.81 -55% 940.6 894.7 45.9 - 491.5 97.7 19.9% 37.3% 1.8x 9.2x Merc adolibre, Inc . * Argentina 96.56 -5% 4,263.2 4,072.2 195.2 0.1 373.6 138.6 37.1% 25.0% 10.9x 29.4x Netflix, Inc . * United States 189.28 -4% 10,598.4 10,282.2 748.1 431.8 3,609.3 95.5 2.6% 12.6% 2.8x 107.7x OpenTable, Inc. United States 62.98 -1% 1,445.8 1,342.3 103.5 - 161.6 46.1 28.5% 15.9% 8.3x 29.1x Orbitz Worldwide, Inc. United States 5.71 -5% 600.2 910.2 130.3 440.3 778.8 106.0 13.6% 1.6% 1.2x 8.6x Overstock.com Inc. United States 12.32 -30% 291.4 197.8 93.5 - 1,099.3 28.2 2.6% 4.3% 0.2x 7.0x PC Home Online Inc. Taiwan 4.11 -35% 336.4 255.6 95.1 - 503.4 18.0 3.6% 12.3% 0.5x 14.2x priceline.c om Inc orporated United States 688.16 -11% 34,319.3 30,753.4 5,183.2 1,457.0 5,261.0 1,914.9 36.4% 20.8% 5.8x 16.1x Rakut en, Inc . Japan 10.22 -4% 13,436.0 9,158.9 8,258.8 3,538.2 5,127.2 1,172.0 22.9% 16.7% 1.8x 7.8x Shutterfly, Inc. United States 44.17 -3% 1,604.8 1,359.7 245.1 - 640.6 82.5 12.9% 35.4% 2.1x 16.5x Shutterstock, Inc. United States 44.98 -1% 1,507.6 1,411.5 102.1 6.0 169.6 32.1 18.9% 41.0% 8.3x 44.0x Stamps.com Inc. United States 24.97 -23% 382.5 346.6 35.9 - 115.7 25.8 22.3% 13.9% 3.0x 13.4x ValueVision Media Inc . * United States 3.46 -9% 170.0 181.5 26.5 38.0 586.8 1.4 0.2% 5.1% 0.3x 131.4x Vipshop Holdings Limited China 30. 37 -4% 1, 674. 9 1, 465. 1 210. 6 0. 8 692. 1 (7. 4) NM 204. 7% 21x2.1x NM
Adjusted Weighted Average 3.2x 29.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (59.9x)
M&A & INVESTMENT SUMMARY MARCH 2013 9 DIGITAL MEDIA/COMMERCE PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Lifestyle and Entertainment Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Bet fair Group PLC United Kingdom 10.70 -20% 1,079.0 900.5 189.9 - 642.9 102.7 16.0% 7.5% 1.4x 8.8x CyberAgent Inc. Japan 1,830.94 -32% 1,185.8 356.8 934.6 1.8 1,731.8 210.0 12.1% 21.8% 0.2x 1.7x Demand Media, Inc . United States 8.63 -31% 743.4 641.9 102.9 1.5 380.6 68.6 18.0% 17.1% 1.7x 9.4x DeNA Co., Lt d. Japan 27.22 -25% 3,651.7 3,168.4 573.3 - 2,225.0 959.5 43.1% 42.1% 1.4x 3.3x Facebook, Inc. * United States 25.58 -43% 60,935.0 53,665.0 9,626.0 2,356.0 5,089.0 1,187.0 23.3% 37.1% 10.5x 45.2x G5 Entertainment AB (publ) Sweden 8.69 -3% 76.4 74.4 2.1 - 12.4 5.5 44.4% 73.6% 6.0x 13.5x GameLoft SA France 6.54 -11% 520.1 464.1 55.8 0.5 241.8 29.4 12.2% 21.1% 1.9x 15.8x Glu Mobile, Inc . United States 3.00 -49% 199.9 177.6 22.3 - 87.5 (9.8) NM 32.2% 2.0x NM Gree, Inc. Japan 12.57 -49% 2,933.2 2,738.2 496.4 282.5 1,891.6 891.4 47.1% 49.5% 1.4x 3.1x IAC/InterAc tiveCorp United States 44.68 -20% 3,764.8 3,700.1 770.6 595.8 2,800.9 418.8 15.0% 36.0% 1.3x 8.8x International Game Technology United States 16.50 -6% 4,362.6 5,937.4 200.7 1,775.5 2,235.5 818.3 36.6% 14.6% 2.7x 7.3x Kongzhong Corp. China 6.20 -24% 265.6 127.4 138.2 - 180.6 30.8 17.0% 15.6% 0.7x 4.1x LinkedIn Corporation * United States 176.06 -4% 19,200.0 18,450.4 749.5 - 972.3 125.5 12.9% 86.2% 19.0x 147.0x MeetMe, Inc. United States 2.28 -51% 84.5 91.2 5.0 11.7 46.7 (0.9) NM 335.8% 2.0x NM Mixi, Inc. * Japan 17.57 -30% 2.7 (130.8) 145.2 - 158.7 48.9 30.8% -1.7% NM NM NCsoft Corporation South Korea 139.13 -53% 2,765.4 2,290.6 527.5 11.4 708.5 177.4 25.0% 23.8% 3.2x 12.9x Nexon Co. Lt d. Japan 9.71 -46% 4,231.4 3,470.0 1,476.5 607.3 1,253.8 698.9 55.7% 23.8% 2.8x 5.0x Pacific Online Ltd. China 0380.38 -20% 408. 0 337. 5 38. 3 - 114. 8 48. 1 41. 9% 11. 8% 29x2.9x 70x7.0x Pandora Media, Inc. United States 14.16 -46% 2,448.2 2,359.2 89.0 - 427.1 (30.8) NM 55.7% 5.5x NM Perform Group plc. United Kingdom 7.08 -10% 1,692.4 1,654.5 54.6 11.5 246.4 53.6 21.7% 46.9% 6.7x 30.9x Phoenix New Media Limited China 4.16 -47% 324.2 139.5 184.7 - 178.2 15.6 8.7% 16.9% 0.8x 9.0x Re dif f . c om India Limit e d India 2.78 -61% 76.7 52.2 - - 16.1 (7.6) NM -23.0% 3.2x NM Renren Inc . China 2.89 -63% 1,091.0 185.8 905.5 - 176.1 (83.1) NM 49.3% 1.1x NM Sky-mobi Limited * China 1.81 -50% 58.4 (38.2) 97.0 - 99.3 1.5 1.5% -9.5% NM NM Spark Networks, Inc . United States 7.04 -15% 147.5 137.1 10.5 - 61.7 (7.5) NM 27.3% 2.2x NM Taomee Holdings Ltd. China 4.03 -30% 147.6 29.1 118.6 - 40.2 5.1 12.7% -11.4% 0.7x 5.7x The Active Network, Inc. United States 4.19 -76% 255.4 202.1 58.5 5.2 418.9 4.3 1.0% 24.2% 0.5x 47.1x TheStr eet , Inc . UUedSaesnited States 1.91-17% 63. 6 21.6 41.9 - 50.7 ((3)2.3) NM -12.2% 0.4x NM United Online, Inc. United States 6.03 -10% 555.1 662.7 136.4 244.0 870.9 101.2 11.6% -3.0% 0.8x 6.6x WebMD Health Corp. United States 24.32 -6% 1,192.0 1,000.2 991.8 800.0 469.9 23.2 4.9% -15.9% 2.1x 43.1x WebMediaBrands Inc United States 1.64 -80% 9.9 15.3 2.2 7.6 14.0 (1.7) NM 12.3% 1.1x NM YY Inc. China 16.90 -19% 918.7 693.7 225.0 - 131.6 21.2 16.1% 156.5% 5.3x 32.8x Zynga, Inc. United States 3.36 -74% 2,639.3 1,454.5 1,284.8 100.0 1,281.3 57.0 4.5% 12.4% 1.1x 25.5x
Adjusted Weighted Average 2.4x 33.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (52.3x)
M&A & INVESTMENT SUMMARY MARCH 2013 10 DIGITAL ADVERTISING Transactions by Subsegment and Buyer Type
• There were 38 transactions announced in the Digital Advertising segment, up 46 percent from the previous month. Of these, 20 reported $151 million in value • Select acquisitions › J.P. Morgan’s $35 million acquisition of daily deals startup Bloomspot, which partners with restaurants, spas, resorts and other businesses to deliver offers to consumers in New York, Chicago, and other cities › Monster Offers’ acquisition of Black Flyday, Deal Buzzer, and My Shopping Circle, which operate as deal/shopping brands, along with a 10 percent stake in mobile app developer Iconosys • Select investments › ABS Capital Partners’ $30 million investment in Alloy Digital, which owns and operates a network of youth- focused websites and television channels › The $11 million investment in FindTheBest, a comparison commerce platform for consumer goods, education and healthcare providers, business and finance service providers, and more, led by New World Ventures
DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Promotion/Coupon 8 21% 40.8 27% 6 35.5 1 - 1 5.3 Ad Networks/Exchanges 7 18% 53.8 36% 2 - 0 - 5 53.8 Digital Video 7 18% 17.8 12% 3 - 0 - 4 17.8 Local Search 6 16% 7.0 5% 2 - 0 - 4 7.0 Mobile Marketing 4 11% 636.3 4% 3 - 0 - 1 636.3 Comparison Shopping 3 8% 19.0 13% 1 - 0 - 2 19.0 Vertical Search 2 5% 6.3 4% 0 - 0 - 2 6.3 Search Marketing 1 3% - 0% 1 - 0 - 0 - Total 38 100% 151.0 100% 18 35.5 1 0.0 19 115.5
M&A & INVESTMENT SUMMARY MARCH 2013 11 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Channel Networks & Platforms Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Blinkx plc United States 1.27 -12% 460.0 421.0 41.6 - 151.8 16.5 10.9% 82.2% 2.8x 25.5x Bluc ora, Inc . United States 15.49 -17% 634.6 546.6 162.3 74.3 406.9 68.3 16.8% 77.8% 1.3x 8.0x Constant Contact, Inc. United States 13.01 -58% 399.2 305.7 93.5 - 252.2 19.8 7.8% 17.6% 1.2x 15.5x Demand Media, Inc . United States 8.63 -31% 743.4 641.9 102.9 1.5 380.6 68.6 18.0% 17.1% 1.7x 9.4x Digital Globe Servic es Inc. United States 2.50 -1% 74.2 76.1 0.9 2.9 22.8 3.6 15.8% 0.0% 3.3x 21.0x ExactTarget, Inc. United States 23.35 -16% 1,603.5 1,495.3 109.4 1.2 292.3 4.1 1.4% 40.9% 5.1x NM Google Inc. United States 802.66 -5% 264,607.5 223,729.5 48,088.0 7,210.0 50,175.0 16,278.0 32.4% 32.4% 4.5x 13.7x Hi- Media S.A. France 2.25 -37% 99.7 133.8 19.1 52.7 256.8 17.2 6.7% -15.3% 0.5x 7.8x Millennial Media Inc. United States 6.63 -76% 525.5 388.1 137.4 - 177.7 (1.8) NM 71.4% 2.2x NM Motricity, Inc . United States 0.35 -76% 16.6 14.1 51.5 22.5 90.0 13.7 15.2% -7.9% 0.2x 1.0x Opera Software ASA Norway 6.35 -19% 773.3 718.9 57.2 - 216.0 60.0 27.8% 34.0% 3.3x 12.0x OPT, Inc. Japan 9.75 -7% 286.9 149.2 171.1 6.0 912.3 26.6 2.9% 26.7% 0.2x 5.6x Pacific Online Ltd. China 0.39 -18% 419.2 348.7 38.3 - 114.8 48.1 41.9% 11.8% 3.0x 7.2x Reac hLoc al, Inc . United States 14.89 -1% 420.9 325.4 95.5 - 455.4 7.6 1.7% 21.3% 0.7x 42.8x Responsys, Inc. United States 8.48 -35% 416.6 311.1 106.7 1.1 162.8 19.3 11.8% 20.7% 1.9x 16.1x Rovi Corporat ion United States 21.24 -37% 2,139.6 2,760.2 863.3 1,484.0 650.6 235.8 36.2% -4.5% 4.2x 11.7x Septeni Holdings Co., Ltd. Japan 1,176.16 -7% 148.3 114.6 55.7 10.8 491.8 20.3 4.1% 19.8% 0.2x 5.6x The Active Network, Inc. United States 4084.08 -76% 248. 7 195. 4 58. 5 5. 2 418. 9 4. 3 10%1.0% 24. 2% 05x0.5x 45. 6x TiVo Inc. United States 12.09 -10% 1,523.7 1,068.9 627.2 172.5 303.9 (31.4) NM 27.6% 3.5x NM TradeDoubler AB Sweden 2.28 -54% 97.2 72.0 25.3 - 354.4 3.1 0.9% -11.7% 0.2x 23.1x ValueClic k, Inc . United States 29.20 -6% 2,211.1 2,216.9 136.6 142.5 660.9 200.5 30.3% 25.0% 3.4x 11.1x Velti Plc Ireland 1.88 -87% 123.4 115.1 36.6 28.2 270.3 5.0 1.9% 42.9% 0.4x 22.9x Vocus Inc. United States 13.69 -34% 289.6 335.9 32.8 1.6 170.8 (0.4) NM 48.7% 2.0x NM Web.com Group, Inc. United States 17.19 -13% 819.2 1,496.8 15.2 692.8 407.6 53.9 13.2% 104.6% 3.7x 27.8x Yahoo! Inc. United States 23.59 -1% 25,979.5 21,878.0 4,184.0 37.0 4,986.6 1,315.1 26.4% 0.0% 4.4x 16.6x Youku Tudou Inc. * China 16.86 -34% 2,763.8 2,160.9 604.2 1.2 288.1 7.7 2.7% 100.0% 7.5x 280.1x
Adjusted Weighted Average 4.4x 14.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (85.9x)
M&A & INVESTMENT SUMMARY MARCH 2013 12 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION
($ in millions, except stock price data) preCommerce Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Angie's List, Inc. United States 19.76 -2% 1,145.0 1,106.7 53.1 14.9 155.8 (48.8) NM 73.0% 7.1x NM Autobytel Inc. United States 4.34 -11% 38.4 28.1 15.3 5.0 66.8 3.5 5.2% 4.7% 0.4x 8.1x Bankrat e, Inc . United States 11.94 -53% 1,194.6 1,304.9 83.6 193.9 457.2 114.0 24.9% 7.8% 2.9x 11.4x Ctrip.c om International Ltd. China 21.38 -14% 2,968.1 2,461.2 774.9 252.7 667.2 119.0 17.8% 18.9% 3.7x 20.7x Dic e Holdings, Inc . United States 10.13 -8% 593.5 597.3 42.2 46.0 195.4 71.3 36.5% 9.1% 3.1x 8.4x eHealth, Inc. United States 17.88 -37% 374.1 233.3 140.8 - 155.5 20.2 13.0% 2.5% 1.5x 11.6x Groupon, Inc . United States 6.12 -68% 4,029.8 2,819.7 1,209.3 1.1 2,334.5 152.0 6.5% 45.0% 1.2x 18.6x HomeAway, Inc. United States 32.50 -5% 2,719.2 2,449.4 269.8 - 280.4 50.7 18.1% 21.8% 8.7x 48.3x Kayak Software Corporation United States 39.96 -7% 1,540.9 1,363.1 178.4 - 282.8 54.0 19.1% 32.8% 4.8x 25.3x LeGuide.com S.A. France 34.63 -4% 121.8 89.8 32.8 - 57.7 15.5 26.8% 53.6% 1.6x 5.8x MakeMyTrip Limited India 13.90 -41% 516.5 443.6 74.4 0.8 220.6 (6.5) NM 21.9% 2.0x NM Monster Worldwide, Inc. United States 5.07 -49% 563.4 579.5 148.2 164.2 890.4 142.5 16.0% -10.4% 0.7x 4.1x Move, Inc. United States 11.95 -1% 473.2 446.1 27.1 - 199.2 16.2 8.1% 3.9% 2.2x 27.6x QuinStreet, Inc. United States 5.97 -50% 255.5 247.4 107.8 99.7 329.1 42.7 13.0% -16.4% 0.8x 5.8x Rightmove plc United Kingdom 27.02 -2% 2,690.6 2,679.9 11.5 - 194.0 136.3 70.3% 23.0% 13.8x 19.7x Tree.Com, Inc. United States 18.49 -1% 211.5 131.3 80.2 - 77.4 (1.7) NM 41.8% 1.7x NM TripAdvisor Inc. United States 52.52 -2% 7,505.4 7,431.1 486.5 412.1 763.0 309.6 40.6% 19.8% 9.7x 24.0x TliTrulia, Inc. UitdUnited SttStates 31. 38 -18% 977. 6 887. 6 100. 0 10. 0 68. 1 (7. 0) NM 76. 8% 13. 0x NM Yelp, Inc. United States 23.71 -20% 1,510.7 1,415.5 95.1 - 137.6 (11.4) NM 65.2% 10.3x NM Zillow, Inc. * United States 54.67 -5% 1,855.5 1,661.4 194.1 - 116.9 12.4 10.6% 76.9% 14.2x 134.3x
Adjusted Weighted Average 7.3x 23.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (14.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (57.3x)
M&A & INVESTMENT SUMMARY MARCH 2013 13 MARKETING TECHNOLOGY Transactions by Subsegment and Buyer Type
• There were 68 deals announced in the Marketing Technology segment, up nearly 20 percent from the previous month. Of those, 53 reported $548 million in value • Select acquisitions › IMS Health’s acquisition of Appature, which offers relationship marketing management software and Web applications to the healthcare industry › SDL’s acquisition of Bemoko, a supplier of mobile Web solutions that optimize user experiences • Select investments › Meritech Capital Partners’ $30 million investment in Anaplan, a provider of cloud-based planning, forecasting, and analytics solutions for analysts, managers, and executives, along with the $30 million investment in Hybris Software, which offers a commerce platform provider for manufacturers and retailers, co-led by Meritech Capital Partners and Greylock
MARKETING TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM SilSocial ThlTechnology 14 21% 41. 1 7% 3 414.1 0 - 11 37. 0 Analytics & Reporting 8 12% 30.0 5% 2 9.5 0 - 6 20.5 Content Management 8 12% 29.7 5% 3 - 0 - 5 29.7 BI Tools 5 7% 107.5 20% 2 15.5 0 - 3 92.0 Ad Serving 4 6% 9.1 2% 0 - 0 - 4 9.1 Media Management System 4 6% 19.1 3% 1 6.1 0 - 3 13.0 Mobile Technology 4 6% 3.8 1% 2 - 0 - 2 3.8 SFA/Lead Management 4 6% 122.0 22% 1 110.0 0 - 3 12.0 CRM 4 6% 102.0 19% 2 100.0 0 - 2 2.0 Commerce Management 3 4% 35.3 6% 0 - 0 - 3 35.3 Other* 8 12% 47.7 9% 4 25.4 0 - 4 22.3 Total 68 100% 548.0 100% 21 270.6 0 0.0 47 277.5 *Other includes Email/Mesaging Software, Marketing Asset Management, MRM/Workflow Management, Online Targeting/Optimization, Teleservices/eServices, Web to Print, and Website Creation/Hosting
M&A & INVESTMENT SUMMARY MARCH 2013 14 MARKETING TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Marketing Applications Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adobe Systems Inc. United States 43.52 0% 21,824.9 19,695.6 3,660.7 1,531.4 4,366.3 1,296.0 29.7% 3.1% 4.5x 15.2x Bazaarvoice, Inc. United States 7.32 -65% 532.8 427.3 105.5 - 148.4 (27.0) NM 57.9% 2.9x NM Blackbaud Inc. United States 29.63 -13% 1,317.0 1,520.3 13.5 216.8 447.4 64.8 14.5% 20.6% 3.4x 23.5x Constant Contact, Inc. United States 12.98 -58% 398.3 304.8 93.5 - 252.2 19.8 7.8% 17.6% 1.2x 15.4x Dealertrack Technologies, Inc. United States 29.38 -13% 1,265.0 1,249.6 177.8 162.5 388.9 53.5 13.8% 10.1% 3.2x 23.4x Demandware, Inc . United States 25.35 -26% 761.8 660.0 107.1 5.4 79.5 (3.8) NM 40.5% 8.3x NM Digital Generation, Inc. United States 6.42 -51% 177.6 546.7 84.8 453.9 386.6 100.6 26.0% 19.2% 1.4x 5.4x Digit al River Inc . United States 14. 14 -26% 499. 8 104. 1 705. 6 309. 9 386. 2 37. 5 97%9.7% -30%3.0% 03x0.3x 28x2.8x eBay Inc. United States 54.22 -5% 70,224.6 65,335.6 9,408.0 4,519.0 14,072.0 4,119.0 29.3% 20.8% 4.6x 15.9x ExactTarget, Inc. United States 23.27 -17% 1,598.0 1,489.8 109.4 1.2 292.3 4.1 1.4% 40.9% 5.1x NM Jive Software, Inc. United States 15.20 -46% 1,000.2 865.6 145.4 10.8 113.7 (36.6) NM 47.1% 7.6x NM LivePerson Inc. United States 13.58 -31% 758.4 655.0 103.3 - 157.4 19.0 12.1% 18.3% 4.2x 34.5x Marin Software Inc orporated United States 16.43 -18% 507.9 487.1 31.5 10.8 59.6 (22.6) NM 64.9% 8.2x NM Market Leader, Inc. United States 8.96 -1% 240.3 218.1 22.2 - 45.0 (3.7) NM 32.2% 4.8x NM Responsys, Inc. United States 8.85 -32% 434.8 329.3 106.7 1.1 162.8 19.3 11.8% 20.7% 2.0x 17.1x Oracle Corporation United States 32.33 -11% 152,295.6 139,082.6 33,407.0 19,752.0 37,149.0 17,286.0 46.5% 0.5% 3.7x 8.0x salesforce.com, inc United States 178.83 -5% 26,189.1 25,969.4 867.6 647.9 3,050.2 84.0 2.8% 34.6% 8.5x NM Ter adata Cor por ati on Uni ted States 58. 51-28% 9,657. 6 9,2 02. 6 72990.0 274.0 2,665. 0 662. 0 24.8% 12.8% 3.5x 13.9x The Active Network, Inc. * United States 4.19 -76% 255.4 202.1 58.5 5.2 418.9 4.3 1.0% 24.2% 0.5x 47.1x Vocus Inc. United States 14.15 -31% 299.3 345.7 32.8 1.6 170.8 (0.4) NM 48.7% 2.0x NM
Adjusted Weighted Average 4.5x 11.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (9.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (35.2x)
M&A & INVESTMENT SUMMARY MARCH 2013 15 MARKETING TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Marketing-related Infrastructure Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Actuate Corporation United States 6.01 -18% 286.7 221.0 66.5 0.8 138.8 23.9 17.2% 2.9% 1.6x 9.2x Bit aut o Holdings Limit ed China 9.90 -5% 407.7 311.4 96.3 - 169.6 26.8 15.8% 57.8% 1.8x 11.6x Brightcove, Inc. United States 6.21 -76% 174.0 145.9 30.0 - 88.0 (9.9) NM 38.4% 1.7x NM E2open, Inc. * United States 19.94 -9% 499.8 467.4 33.5 1.1 74.4 4.4 5.9% 22.2% 6.3x 106.3x Informatic a Corporation United States 34.47 -37% 3,717.2 3,184.1 535.6 - 811.6 180.3 22.2% 3.5% 3.9x 17.7x Infosystems S.A. Poland 1.17 -32% 4.8 4.5 0.6 0.3 2.1 0.8 38.8% 40.7% 2.2x 5.6x Interac tive Intelligenc e Group Inc. * United States 44.35 -2% 879.8 810.9 68.9 - 237.4 11.1 4.7% 13.3% 3.4x 73.1x IBM Corporation United States 213.30 -1% 237,725.0 259,942.0 11,176.0 33,269.0 104,507.0 26,858.0 25.7% -2.3% 2.5x 9.7x Keynot e Syst ems, Inc . United States 13.96 -31% 255.0 203.8 51.2 - 125.2 16.4 13.1% 12.5% 1.6x 12.4x Merc adolibre, Inc . Argentina 96.56 -5% 4,263.2 4,072.2 195.2 0.1 373.6 138.6 37.1% 25.0% 10.9x 29.4x MicroStrategy Inc. United States 101.08 -37% 1,141.0 918.7 224.4 - 594.6 49.9 8.4% 5.8% 1.5x 18.4x NetSuite Inc . * United States 80.06 0% 5,864.6 5,681.8 185.9 3.0 308.8 (16.1) NM 30.7% 18.4x NM Nuance Communications, Inc. United States 20.18 -25% 6,382.4 7,761.0 961.1 2,335.0 1,753.1 379.4 21.6% 27.4% 4.4x 20.5x OpenText Corporation Canada 59.02 -6% 3,456.9 3,671.0 367.3 581.4 1,276.3 372.0 29.1% 10.2% 2.9x 9.9x Opera Software ASA Norway 6.37 -19% 773.3 718.9 57.2 - 216.0 60.0 27.8% 34.0% 3.3x 12.0x PTC Inc. United States 25.49 -12% 3,045.6 3,165.3 248.4 368.1 1,257.2 225.0 17.9% 3.2% 2.5x 14.1x Qlik Tec hnologies, Inc . * United States 25.83 -23% 2,231.8 2,036.0 195.8 - 388.5 19.9 5.1% 21.2% 5.2x 102.4x RealNet works Inc . United States 7717.71 -23% 272. 5 1. 1 271. 4 - 258. 8 (25. 3) NM -22. 9% 00x0.0x NM Sage Group plc United Kingdom 5.20 -4% 6,128.9 6,349.6 99.3 337.3 2,160.7 639.4 29.6% 0.5% 2.9x 9.9x SAP AG Germany 80.34 -4% 95,726.8 98,921.4 3,466.3 6,918.1 21,389.7 7,223.9 33.8% 14.0% 4.6x 13.7x Sky-mobi Limited * China 1.81 -50% 58.4 (38.2) 97.0 - 99.3 1.5 1.5% -9.5% NM NM Synchronoss Technologies, Inc. United States 31.03 -7% 1,173.2 1,126.5 56.2 9.5 273.7 60.6 22.2% 19.5% 4.1x 18.6x TIBCO Software Inc. United States 20.22 -42% 3,245.9 3,002.7 761.7 560.2 1,036.7 210.1 20.3% 7.9% 2.9x 14.3x Verint Systems Inc. United States 36.55 2% 1,920.0 2,563.6 192.0 592.6 839.5 156.7 18.7% 7.3% 3.1x 16.4x
Adjusted Weighted Average 3.2x 11.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (56.5x)
M&A & INVESTMENT SUMMARY MARCH 2013 16 AGENCY Transactions by Subsegment and Buyer Type
• Activity in the Agency segment increased nearly 50 percent from the previous month, with 14 acquisitions announced, of which four reported $28 million in value • Select acquisitions › St Ives Marketing Services‘ $23 million acquisition of UK-based Amaze, which operates as a digital marketing and technology company, from UK-based digital and communication services firm Hasgrove › WPP’s acquisition of Canada-based john st., a $14 million creative digital ad agency › IPG Mediabrands’s acquisition of India-based digital marketing company Interactive Avenues Marketing Solutions, from Sequoia Capital India
AGENCY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Agency 7 50% 22.8 82% 7 22.8 0 - 0 - Marketing Consulting 5 36% 3.0 11% 4 2.9 1 0.1 0 - Branded Communications 1 7% 2.0 7% 1 2.0 0 - 0 - Design Agency 1 7% - 0% 1 - 0 - 0 - Total 14 100% 27.8 100% 13 27.7 1 0.1 0 0.0
M&A & INVESTMENT SUMMARY MARCH 2013 17 AGENCY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acquity Group Limited Hong Kong $6.43 -42% $151.2 $114.8 $141.0 $27.7 19.7% 32.2% 0.8x 4.1x Cello Group Plc United Kingdom 0.76 -6% 62.9 76.1 219.7 13.1 6.0% 1.2% 0.3x 5.8x Charm Communications Inc. China 5.01 -57% 195.1 88.1 165.5 (2.6) NM -40.9% 0.5x NM Chime Communications plc * United Kingdom 3.90 -5% 313.3 309.0 559.5 19.4 3.5% 5.6% 0.6x 15.9x Creston plc United Kingdom 1.30 -11% 78.6 81.7 121.9 22.0 18.1% 4.6% 0.7x 3.7x Dent su Inc . Japan 30.82 -4% 7,679.8 7,613.4 22,520.5 774.4 3.4% 5.7% 0.3x 9.8x Enero Group Limited Australia 0.39 -60% 33.1 16.4 307.1 3.8 1.2% -17.8% 0.1x 4.3x Havas France 6.26 -3% 2,392.1 3,020.7 2,344.3 356.3 15.2% 8.1% 1.3x 8.5x Hunt swort h plc United Kingdom 0.78 -13% 197.7 303.0 276.6 44.4 16.1% 1.0% 1.1x 6.8x M&C Saatchi plc United Kingdom 3.05 -14% 193.5 170.5 275.5 31.7 11.5% 10.7% 0.6x 5.4x MDC Partners Inc . * United States 15.84 0% 495.2 1,031.9 1,070.7 59.3 5.5% 13.9% 1.0x 17.4x Next Fifteen Communications Group plc United Kingdom 1.69 -3% 100.7 107.8 143.6 17.9 12.5% 6.4% 0.8x 6.0x Omnicom Group Inc. United States 58.64 -2% 15,328.8 17,779.1 14,219.4 2,086.9 14.7% 2.5% 1.3x 8.5x OPT, Inc. Japan 9.75 -7% 286.9 149.2 912.3 26.6 2.9% 26.7% 0.2x 5.6x Publicis Groupe SA France 66.24 -5% 13,910.2 13,704.5 8,715.1 1,677.1 19.2% 13.7% 1.6x 8.2x Sapient Corp. United States 12. 11 -5% 1, 672. 5 1, 432. 1 1, 121. 0 140. 1 12. 5% 98%9.8% 13x1.3x 10. 2x The Interpublic Group of Companies, Inc. United States 13.04 -3% 5,397.4 5,740.8 6,956.2 826.0 11.9% -0.8% 0.8x 7.0x WPP plc Ireland 15.74 -5% 19,905.1 24,547.0 16,860.0 2,844.5 16.9% 3.5% 1.5x 8.6x
Adjusted Weighted Average 1.2x 8.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (1.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (11.8x)
M&A & INVESTMENT SUMMARY MARCH 2013 18 MARKETING SERVICES Transactions by Subsegment and Buyer Type
• There were 12 transactions announced in the Marketing Services segment in March, up from three in the previous month. The most active subsegment was Printing Services with five deals announced • Select acquisitions › AlloyASL’s acquisition of Student Marketing Group, which offers lists and telemarketing for high school through college students and young adults › Exact Data’s acquisition of direct mail list management companies ConsumerBase and Statlistics • Select investments › The $1 million investment in AnyPerk, a startup focused on discounts for companies on Internet services and employee perks › The $1 million investment in Billaway (aka Neighbor Marketing), a startup providing a rewards program for customers of utility companies
MARKETING SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM % # $MM # $MM # $MM Printing Services 5 42% - 0% 3 - 1 - 1 - List Broker/Manager 2 17% - 0% 2 - 0 - 0 - Logistics 2 17% 5.0 67% 1 - 0 - 1 5.0 Loyalty/Retention 2 17% 2.5 33% 0 - 0 - 2 2.5 Ad Specialty/Premiums 1 8% - 0% 1 - 0 - 0 - Total 12 100% 7.5 100% 7 0.0 1 0.0 4 7.5
M&A & INVESTMENT SUMMARY MARCH 2013 19 MARKETING SERVICES PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $20.16 -1% $1,488.4 $1,563.5 $186.2 $261.6 $1,109.5 $223.4 20.1% -1.9% 1.4x 7.0x Aimia Inc. Canada 15.05 -8% 2,593.8 2,997.6 542.2 795.7 2,256.3 349.2 15.5% 6.3% 1.3x 8.6x Alliance Data Systems Corporation * United States 159.71 0% 7,965.4 12,164.8 893.4 5,092.7 3,641.4 1,111.2 30.5% 14.8% 3.3x 10.9x AMREP Corporation United States 11.32 -28% 67.9 76.3 15.1 25.7 81.7 2.1 2.5% -7.5% 0.9x 36.7x Cenveo Inc. United States 2.02 -42% 129.0 1,304.5 8.1 1,183.6 1,797.6 202.7 11.3% -5.8% 0.7x 6.4x Consolidated Graphics, Inc. United States 38.91 -16% 374.2 518.0 8.5 152.2 1,047.8 103.5 9.9% -0.5% 0.5x 5.0x Convergys Corporation United States 17.07 -2% 1,811.0 1,233.1 638.5 60.6 2,005.0 227.5 11.3% 3.7% 0.6x 5.4x CSG Systems International Inc. United States 20.75 -11% 659.4 765.8 169.3 274.7 756.9 152.0 20.1% 3.0% 1.0x 5.0x Dat a Group Inc Canada 2.10 -61% 49.2 148.7 - 101.4 337.4 28.8 8.5% 1.3% 0.4x 5.2x DST Systems Inc. United States 70.63 -1% 3,126.7 3,653.4 487.2 1,013.9 2,576.6 372.6 14.5% 7.9% 1.4x 9.8x Elanders AB Sweden 3.18 -18% 72.2 177.8 25.8 131.5 295.5 32.2 10.9% 4.6% 0.6x 5.5x Fair Isaac Corporation * United States 45.89 -4% 1,628.8 2,042.0 90.8 504.0 696.1 191.7 27.5% 9.8% 2.9x 10.7x Harte- Hanks Inc . United States 7.79 -21% 486.1 546.7 35.8 113.3 767.7 88.7 11.6% -5.4% 0.7x 6.2x High Co. SA France 6.39 -21% 66.7 36.8 49.5 19.4 170.2 15.3 9.0% -3.2% 0.2x 2.4x InnerWorkings Inc. United States 14.79 -6% 742.8 790.6 17.2 65.0 797.7 37.4 4.7% 25.9% 1.0x 21.1x Innotrac Corp. United States 2.85 -21% 37.5 38.6 1.7 2.8 98.4 6.1 6.2% 19.5% 0.4x 6.3x Insignia Systems Inc. United States 2.03 -13% 27.7 7.4 19.8 - 20.2 (1.0) NM 17.1% 0.4x NM Multiplus SA Brazil 14.06 -45% 2,277.1 1,761.5 92.9 - 720.5 118.1 16.4% 18.4% 2.4x 14.9x Points International Ltd. * Canada 15.54 -4% 235.8 191.5 34.1 - 139.5 4.1 2.9% 13.5% 1.4x 47.0x Quad/Graphics, Inc. United States 24.00 -2% 1,141.5 2,499.4 16.9 1,374.5 4,094.0 563.4 13.8% -5.3% 0.6x 4.4x R.R. Donnelley & Sons Company United States 11.98 -10% 2,160.5 5,184.3 430.7 3,438.6 10,221.9 1,232.8 12.1% -3.7% 0.5x 4.2x SoundBite Communications, Inc. * United States 3.00 -5% 49.5 34.5 15.0 - 48.1 0.4 0.9% 15.4% 0.7x 79.1x StarTek, Inc. United States 5.92 -1% 90.5 81.3 9.2 - 198.1 6.3 3.2% -9.8% 0.4x 12.9x Sykes Enterprises, Incorporated United States 15.89 -4% 684.2 590.4 187.3 - 1,127.7 107.0 9.5% -3.6% 0.5x 5.5x Teleperformance France 41.74 -3% 2,299.1 2,199.7 241.3 18.3 3,094.6 379.7 12.3% 10.4% 0.7x 5.8x TeleTech Holdings Inc. United States 21.13 -1% 1,106.3 1,066.9 164.5 111.0 1,163.0 145.9 12.5% -1.4% 0.9x 7.3x Transcontinental Inc. Canada 12.60 -1% 976.2 1,399.5 16.8 487.3 2,153.7 362.1 16.8% 9.7% 0.6x 3.9x Valassis Communications Inc. United States 29.86 -5% 1,168.9 1,661.7 94.7 587.6 2,162.1 288.5 13. 3% -33%3.3% 08x0.8x 58x5.8x Viad Corp United States 27.91 -2% 565.2 462.2 124.2 2.3 1,025.2 63.2 6.2% 8.8% 0.5x 7.3x Vistaprint N.V. Netherlands 39.09 -10% 1,312.3 1,478.1 64.7 230.5 1,107.8 106.1 9.6% 19.8% 1.3x 13.9x
Adjusted Weighted Average 1.1x 8.9x
*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 (28.6x)
M&A & INVESTMENT SUMMARY MARCH 2013 20 TRADITIONAL MEDIA Transactions by Subsegment and Buyer Type
• There were 18 transactions announced in the Tradition Media segment, of which 11 reported $4.1 billion in value • Select acquisitions › Sinclair Broadcast Group’s $370 million acquisition of 18 broadcast television stations owned by Barrington Broadcasting Group › SFX Entertainment’ s $102 million acquisition of Netherlands-based ID&T, an entertainment media company specializing in creating music and dance events. SFX Entertainment also raised approximately $10 million from WPP, and in February, acquired Beatport for $50 million › NC2 Media’s $63 million acquisition of Lonely Planet Publications, which publishes guidebooks, digital books, city guides, and maps that provide travel details • Select investments › Liberty Media’s $2.6 billion purchase of a 27 percent stake in cable services provider Charter Communications, from Oaktree Capital Management, Crestview Partners, and Apollo Global Management , at a valuation of $22.6 billion › The $60 million investment in Daisy, which offers a streaming streaming music service built internally by headphone and speaker maker Beats Electronics, led by an individual investor
TRADITIONAL MEDIA TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Broadcast Television 4 22% 600.5 14% 4 600.5 0 - 0 - Entertainment Media 4 22% 106.6 3% 4 106.6 0 - 0 - Radio 4 22% 78.2 2% 2 18.2 1 - 1 60.0 Newspaper Publishing 2 11% - 0% 1 - 1 - 0 - Cable & Satellite Television 2 11% 3,288.4 79% 0 - 0 - 2 3,288.4 Consumer Book Publishing 1 6% 62.2 2% 1 62.2 0 - 0 - Digital Place-Based Media 1 6% 9.5 0% 0 - 0 - 1 9.5 Total 18 100% 414544,145.4 100% 12 787. 5 2 000.0 4 335793,357.9
M&A & INVESTMENT SUMMARY MARCH 2013 21 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Large Cap Diversified Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CBS Corporation United States $46.16 -3% $29,329.5 $34,543.5 $708.0 5,922.0 $14,089.0 $3,488.0 24.8% 3.3% 2.5x 9.9x Discovery Communications, Inc. * United States 78.59 -2% 27,857.5 31,805.5 1,297.0 5,243.0 4,487.0 1,997.0 44.5% 7.7% 7.1x 15.9x News Corp. United States 30.23 -2% 70,364.6 80,517.6 7,806.0 16,457.0 34,333.0 6,862.0 20.0% 0.5% 2.3x 11.7x Time Warner Inc. United States 56.63 -2% 52,937.2 69,968.2 2,841.0 19,871.0 28,729.0 7,280.0 25.3% -0.8% 2.4x 9.6x Viacom, Inc. United States 61.36 -5% 30,424.2 38,308.2 671.0 8,389.0 13,249.0 3,913.0 29.5% -11.9% 2.9x 9.8x The Walt Disney Company United States 56.47 -2% 101,953.0 118,557.0 3,207.0 17,457.0 42,840.0 10,900.0 25.4% 4.6% 2.8x 10.9x
Adjusted Weighted Average 2.6x 10.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.7x)
Radio Broadcasting Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Beasley Broadcast Group Inc. United States $6.64 -4% $151.4 $256.5 $11.7 116.8 $100.2 $29.6 29.5% 2.6% 2.6x 8.7x CC Media Holdings, Inc. United States 3.00 -54% 257.2 20,150.0 1,235.3 20,824.0 6,246.9 1,905.2 30.5% 1.4% 3.2x 10.6x Cumulus Media Inc. United States 3.37 -8% 591.6 3,276.5 47.0 2,692.0 1,076.6 354.1 32.9% 107.0% 3.0x 9.3x Dial Global, Inc. * United States 0.33 -91% 18.8 295.2 16.3 282.2 246.1 18.3 7.4% 165.6% 1.2x 16.1x Emmis Communications Corp. United States 1.65 -36% 65.1 262.4 11.2 160.6 227.6 34.3 15.1% 0.2% 1.2x 7.6x Entercom Communications Corp. United States 7.49 -11% 276.8 850.4 6.6 599.5 388.9 109.1 28.1% 1.6% 2.2x 7.8x Journal Communications Inc. United States 6.65 -3% 336.7 580.5 2.6 54.6 400.0 88.2 22.0% 12.1% 1.5x 6.6x Radio One Inc . United States 1.73 -11% 86.6 1,087.0 48.8 819.3 424.6 120.6 28.4% 16.4% 2.6x 9.0x Salem Communications Corp. United States 8.19 -3% 201.1 469.7 0.4 248.9 229.2 50.0 21.8% 5.0% 2.0x 9.4x SIRIUS XM Radio Inc. * United States 3.08 -5% 20,201.7 22,116.0 520.9 2,435.2 3,402.0 1,138.3 33.5% 12.9% 6.5x 19.4x Spanish Broadcasting System Inc. United States 2.42 -68% 17.6 359.3 30.3 279.7 140.8 41.3 29.4% 2.2% 2.6x 8.7x Pandora Media, Inc. United States 14.02 -46% 2,424.0 2,335.0 80.5 - 427.1 (30.8) NM 55.7% 5.5x NM
Adjusted Weighted Average 4.1x 8.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.2x)
B-to-B Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Euromoney Institutional Investor PLC United Kingdom $14.19 -3% $1,788.4 $1,846.0 $21.8 72.6 $635.5 $186.4 29.3% 8.5% 2.9x 9.9x Global Sourc es Lt d. Bermuda 7.57 -11% 257.2 152.3 110.8 - 231.7 41.8 18.0% 3.0% 0.7x 3.6x Informa plc Switzerland 7.91 -2% 4,767.9 5,980.8 38.8 1,343.0 2,003.3 581.4 29.0% -3.4% 3.0x 10.3x TechTarget, Inc. United States 4.95 -35% 193.5 138.5 57.3 - 100.0 14.7 14.7% -5.2% 1.4x 9.4x The Dolan Company United States 2.49 -74% 75.5 238.5 15.6 192.0 254.3 31.7 12.4% -5.3% 0.9x 7.5x UBM plc Ireland 10.54 -13% 2,585.4 3,507.4 169.9 1,011.8 1,296.7 315.3 24.3% -17.9% 2.7x 11.1x
Adjusted Weighted Average 2.8x 10.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (11.4x)
M&A & INVESTMENT SUMMARY MARCH 2013 22 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Publishing Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A. H. Belo Corporation United States $5.57 -1% $123.2 $89.2 $34.1 - $440.0 $32.7 7.4% -4.6% 0.2x 2.7x Daily Mail and General Trust plc * United Kingdom 10.65 -4% 3,971.5 5,057.7 168.8 1,173.7 2,816.3 513.3 18.2% -0.1% 1.8x 9.9x Emmis Communic a t io ns Corp. United States 1.65 -36% 65.1 262.4 11.2 160.6 227.6 34.3 15.1% 0.2% 1.2x 7.6x Gannett Co., Inc. United States 21.87 -1% 5,018.6 6,475.6 237.4 1,634.8 5,353.2 1,105.9 20.7% 2.2% 1.2x 5.9x Glac ier Media, Inc . Canada 1.86 -23% 166.2 338.3 6.8 139.8 331.1 46.8 14.1% 23.4% 1.0x 7.2x John Wiley & Sons Inc. United States 38.41 -26% 2,283.1 2,733.4 92.6 703.8 1,769.5 334.3 18.9% -0.2% 1.5x 8.2x Journal Communications Inc. United States 6.65 -3% 336.7 580.5 2.6 54.6 400.0 88.2 22.0% 12.1% 1.5x 6.6x Martha Stewart Living Omnimedia Inc . United States 2562.56 -35% 172. 0 122. 9 49. 1 - 197. 6 (3. 3) NM -10. 8% 06x0.6x NM Meredith Corporation United States 38.61 -16% 1,699.6 2,039.8 24.7 365.0 1,434.8 264.3 18.4% 6.4% 1.4x 7.7x Reed Elsevier Group * United Kingdom 11.71 -2% 25,289.8 30,370.5 2,673.1 2,407.7 9,554.5 2,209.0 2.3% 2.3% 3.2x 13.7x Sc holastic Corporation United States 26.48 -28% 847.3 801.2 257.3 211.2 1,968.8 174.5 8.9% -2.3% 0.4x 4.6x The E. W. Scripps Company United States 12.03 -1% 688.2 643.9 242.6 196.1 903.5 138.9 15.4% 24.0% 0.7x 4.6x The McClatchy Company United States 2.98 -14% 256.2 2,092.8 15.7 1,751.6 1,230.7 316.1 25.7% -3.1% 1.7x 6.6x The Mc Graw- Hill Companies, Inc . * United States 50.46 -14% 14,217.8 15,595.8 761.0 1,256.0 4,450.0 1,526.0 34.3% 12.5% 3.5x 10.2x T he Ne w Y ork T ime s Co mpa ny United States 9.93 -10% 1,469.2 1,214.3 614.1 776.9 1,990.1 281.5 14.1% 1.9% 0.6x 4.3x The Washington Post Company United States 449.16 -2% 3,334.4 3,126.2 729.9 457.7 4,017.7 545.0 13.6% -2.7% 0.8x 5.7x Valassis Communications Inc. United States 29.86 -5% 1,168.9 1,661.7 94.7 587.6 2,162.1 288.5 13.3% -3.3% 0.8x 5.8x
Adjusted Weighted Average 12x1.2x 61x6.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.8x)
Entertainment Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA DreamWorks Animation SKG Inc. United States $19.05 -17% $1,616.7 $1,723.0 $59.2 $165.0 $749.8 $105.5 14.1% 6.2% 2.3x 16.3x Eros International Plc United Kingdom 3.51 -26% 436.9 621.6 102.1 260.5 200.9 57.8 28.8% 6.5% 3.1x 10.8x Lions Gate Entertainment Corp. * United States 23.92 0% 3,233.6 4,553.4 48.2 1,367.9 2,567.6 198.7 7.7% 94.6% 1.8x 22.9x Live Nation Entertainment, Inc. United States 12.61 0% 2,371.3 3,305.5 1,001.1 1,740.0 5,819.0 410.8 7.1% 8.1% 0.6x 8.0x Village Roadshow Limited Australia 5.12 -4% 859.5 1,142.6 174.0 446.3 964.2 170.7 17.7% 2.3% 1.2x 6.7x World Wrestling Entertainment Inc. United States 8.73 -3% 652.6 500.2 152.3 - 484.0 64.4 13.3% 0.0% 1.0x 7.8x
Adjusted Weighted Average 1.5x 10.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (18.4x)
Film Exhibition Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Carmike Cinemas Inc. United States $18.22 -4% $324.1 $690.2 $82.0 $325.0 $539.3 $97.9 18.1% 12.9% 1.3x 7.1x Cinemark Holdings Inc. United States 29.47 -1% 3,387.6 4,584.2 540.8 1,717.0 2,473.5 546.6 22.1% 8.5% 1.9x 8.4x Cineplex Inc. Canada 33.71 -1% 2,118.1 2,239.9 47.9 172.2 1,095.4 200.5 18.3% 9.4% 2.0x 11.2x IMAX Corporation * Canada 26.72 -1% 1,779.3 1,769.0 21.3 11.0 283.6 74.9 26.4% 21.9% 6.2x 23.6x National CineMedia, Inc . United States 15.41 -9% 877.3 1,732.4 106.6 879.0 448.8 212.2 47.3% 3.1% 3.9x 8.2x RealD Inc . United States 12.86 -17% 640.7 647.4 27.7 35.0 220.2 43.3 19.7% -13.7% 2.9x 15.0x Regal Entertainment Group United States 16.66 -1% 2,570.2 4,464.4 109.5 2,005.5 2,824.2 533.5 18.9% 5.3% 1.6x 8.4x
Adjusted Weighted Average 27x2.7x 93x9.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (17.6x)
M&A & INVESTMENT SUMMARY MARCH 2013 23 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Out-of-HomePblihi Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AirMedia Group Inc. * China $1.80 -46% $112.7 ($8.0) $116.1 $0.0 $286.7 $21.4 7.5% 6.0% NM NM APG|SGA SA Switzerland 238.14 -3% 699.5 646.1 56.5 0.0 343.1 73.0 21.3% 5.7% 1.9x 8.9x Clear Channel Outdoor Holdings Inc. United States 7.52 -11% 2,686.7 7,307.3 572.1 4,944.8 2,946.9 697.0 23.7% -1.9% 2.5x 10.5x Clear Media Ltd. Hong Kong 0.69 -8% 363.9 211.0 166.4 - 196.4 80.2 40.9% 2.4% 1.1x 2.6x Focus Media Holding Ltd. Hong Kong 26.68 -1% 3,524.6 2,933.3 703.0 200.0 927.5 357.2 38.5% 17.0% 3.2x 8.2x JCDecaux SA France 26.95 -9% 5,985.8 5,895.0 398.6 555.0 3,458.1 717.4 20.7% 6.5% 1.7x 8.2x Lamar Advertising Co. * United States 48.10 -1% 4,515.4 6,617.4 38.4 2,075.6 1,182.9 517.7 43.8% 4.4% 5.6x 12.8x Mood Media Corporation Canada 1.37 -68% 234.7 692.4 11.4 480.7 443.8 72.3 16.3% 34.3% 1.6x 9.6x National CineMedia, Inc . United States 15.41 -9% 877.3 1,732.4 106.6 879.0 448.8 212.2 47.3% 3.1% 3.9x 8.2x NT N Buzztime Inc . * United States 0.25 -11% 17.8 15.6 2.4 0.2 24.2 0.1 0.2% 0.5% 0.6x 268.4x Tom Group Ltd. Hong Kong 0.11 -21% 420.9 645.2 110.1 285.8 284.6 1.8 0.6% -5.2% 2.3x NM Valassis Communications Inc. United States 29.86 -5% 1,168.9 1,661.7 94.7 587.6 2,162.1 288.5 13.3% -3.3% 0.8x 5.8x
Adjusted Weighted Average 2.2x 9.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (116.6x)
Cable & Satellite Television Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Cablevision Systems Corporation United States $14.92 -21% $3,950.8 $14,621.1 $438.7 11,326.6 $6,705.5 $1,913.5 28.5% 0.1% 2.2x 7.6x Charter Communications, Inc. United States 104.29 -2% 10,551.9 23,419.9 7.0 12,875.0 7,504.0 2,644.0 35.2% 4.2% 3.1x 8.9x Comcast Corporation United States 41.75 -1% 108,995.4 154,476.4 12,415.0 40,458.0 62,570.0 19,977.0 31.9% 12.0% 2.5x 7.7x DIRECT V United States 57.24 0% 32,680.7 48,706.7 1,902.0 17,528.0 29,740.0 7,226.0 24.3% 9.2% 1.6x 6.7x Dish Net work Corp. United States 38.02 0% 17,234.6 21,919.7 7,237.8 11,888.1 14,266.5 2,961.3 20.8% 1.6% 1.5x 7.4x General Communication Inc. United States 8.72 -16% 360.3 1,325.7 27.6 948.7 710.2 219.4 30.9% 4.5% 1.9x 6.0x Liber tty Glo ba l Inc. * UitdUnited SttStates 72. 35 0% 18, 039. 8 45, 908. 7 2, 230. 2 30, 224. 0 10, 310. 8 4, 757. 2 46. 1% 84%8.4% 454.5x 979.7x Time Warner Cable Inc. United States 96.01 -6% 28,372.3 51,896.3 3,470.0 26,990.0 21,386.0 7,587.0 35.5% 8.7% 2.4x 6.8x Virgin Media, Inc. United States 48.48 0% 13,056.3 22,526.8 345.2 9,815.7 6,664.8 2,687.5 40.3% 2.7% 3.4x 8.4x Ziggo N.V. * Netherlands 31.05 -12% 6,209.6 9,933.7 121.9 3,964.7 2,026.3 1,108.5 54.7% 4.0% 4.9x 9.0x
Adjusted Weighted Average 2.6x 7.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.0x)
Cable Networks Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMC Networks Inc. United States $62.76 0% $4,543.4 $6,123.6 $313.3 2,230.1 $1,352.6 $458.2 33.9% 13.9% 4.5x 13.4x British Sky Broadc asting Group plc United Kingdom 13.25 -4% 21,206.2 23,370.8 2,272.2 4,599.8 11,312.5 2,576.2 22.8% 2.7% 2.1x 9.1x CBS Corporation United States 46.16 -3% 29,329.5 34,543.5 708.0 5,922.0 14,089.0 3,488.0 24.8% 3.3% 2.5x 9.9x Crown Media Holdings Inc. United States 2.01 -7% 722.9 1,178.0 43.7 498.8 349.9 261.3 74.7% 8.2% 3.4x 4.5x Discovery Communications, Inc . * United States 78.59 -2% 27,857.5 31,805.5 1,297.0 5,243.0 4,487.0 1,997.0 44.5% 7.7% 7.1x 15.9x Grupo T elevisa, S.A.B. Mexico 26.53 -9% 15,142.3 18,364.1 1,878.1 4,465.0 5,337.6 2,050.1 38.4% 10.7% 3.4x 9.0x Scripps Networks Interactive, Inc. United States 63.97 -4% 9,492.0 10,882.3 437.5 1,384.2 2,307.2 1,040.9 45.1% 11.3% 4.7x 10.5x
Adjusted Weighted Average 4.0x 9.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.9x)
M&A & INVESTMENT SUMMARY MARCH 2013 24 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
BroadcastPblihi Television Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Belo Corp. United States $9.69 -1% $987.3 $1,710.5 $9.4 733.0 $714.7 $259.2 36.3% 9.9% 2.4x 6.6x Entravision Communications Corporation United States 3.11 -12% 268.7 573.4 45.2 360.3 223.3 75.9 34.0% 14.8% 2.6x 7.6x Fisher Communications, Inc . * United States 38.76 -2% 340.4 320.1 20.4 - 168.2 31.4 18.7% 2.6% 1.9x 10.2x Gray T elevision Inc . United States 4.38 -12% 251.9 1,073.7 45.7 820.6 404.8 176.6 43.6% 31.8% 2.7x 6.1x Journal Communications Inc. United States 6.65 -3% 336.7 580.5 2.6 54.6 400.0 88.2 22.0% 12.1% 1.5x 6.6x LIN TV Corp. United States 10.76 -20% 582.4 1,429.6 46.3 890.2 553.5 210.7 38.1% 38.4% 2.6x 6.8x Nexstar Broadcasting Group, Inc. United States 17.93 -3% 527.4 1,316.1 12.2 615.2 378.6 146.9 38.8% 23.5% 3.5x 9.0x Sinc la ir Broa dcast Group Inc. * UiUnite d States 19. 72 -1% 1, 609. 7 3, 877. 1 22. 9 2, 273. 4 1, 061. 7 419. 3 39.5% 38.7% 3.7x 9.2x The E. W. Scripps Company United States 12.03 -1% 688.2 643.9 242.6 196.1 903.5 138.9 15.4% 24.0% 0.7x 4.6x
Adjusted Weighted Average 2.6x 6.6x
*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 (9.2x)
Yellow Pages Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV /Rev EV/EBITDA Dex One Corporat ion United States $1.63 -38% $83.0 $1,921.0 $95.6 $2,005.9 $1,300.0 $508.4 39.1% -12.2% 1.5x 3.8x Eniro AB Sweden 1.76 -29% 176.3 604.7 30.4 455.5 614.2 148.7 24.2% -7.5% 1.0x 4.1x PagesJaunes Groupe * France 2.16 -42% 599.6 2,795.8 155.0 2,421.3 1,405.8 593.0 42.2% -3.2% 2.0x 4.7x SuperMedia Inc. United States 3.68 -35% 57.6 1,394.6 94.0 1,475.0 1,354.0 588.0 43.4% -17.5% 1.0x 2.4x PubliGroupe AG Switzerland 149.43 -9% 337.0 210.3 114.2 52.8 311.4 (22.1) NM -16.9% 0.7x NM Yellow Media Limited Canada 9.48 -9% 265.1 1,034.4 107.2 891.4 1,111.3 525.3 47.3% -16.6% 0.9x 2.0x
Adjusted Weighted Average 1.3x 2.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (4.5x)
M&A & INVESTMENT SUMMARY MARCH 2013 25 TECHNOLOGY Transactions by Subsegment and Buyer Type
• Activity in the Technology segment was led by the Financial subsegment, in which eight deals were announced with $33 million in reported value. Infrastructure was the highest reported value subsegment with three deals announced worth $423 million in reported value • Select acquisitions › Cadence Design’s $380 million acquisition of Tensilica, which offers audio digital signal processor (DSP) in te llec tua l proper ty (IP) cores and 4G baseb and DSP IP cores for mobil e, hand set , and home ent ert ai nment markets › Oracle’s $100 million acquisition of Nimbula, a cloud operating system company providing infrastructure software for building private, hybrid, or public storage solutions • Select investments › China Broadband Capita ‘s $44 million investment in Pluribus Networks, a provider of hardware-accelerated network virtualization solutions for private and public cloud data centers › The $30 million investment in MapR Technologies, a company that has developed software to manage and analyze big data, led by Mayfield Fund
TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM Financial 8 27% 32.7 5% 5 11.4 0 - 3 21.3 Big Data 5 17% 44.9 6% 0 - 0 - 5 44.9 Cloud Computing 5 17% 125. 5 18% 3 100. 0 0 - 2 25. 5 Cloud Storage 4 13% 17.5 2% 0 - 0 - 4 17.5 Data Center 3 10% 16.0 2% 1 - 0 - 2 16.0 Infrastructure 3 10% 423.5 60% 1 380.0 0 - 2 43.5 Enabling 1 3% - 0% 1 - 0 - 0 - Virtualization 1 3% 44.0 6% 0 - 0 - 1 44.0 Total 30 100% 704.0 100% 11 491.4 0 0.0 19 212.6
M&A & INVESTMENT SUMMARY MARCH 2013 26 TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 3M Company United States $105.29 -1% $72,649.0 $74,655.0 $4,531.0 $6,072.0 $29,904.0 $7,771.0 26.0% 1.0% 2.5x 9.6x ACI Worldwide, Inc . United States 48.55 -1% 1,915.5 2,225.6 76.3 374.3 666.6 157.2 23.6% 43.3% 3.3x 14.2x ADATA Technology Co., Ltd. Taiwan 1.64 -2% 345.1 429.2 76.6 192.2 971.0 26.8 2.8% -6.8% 0.4x 16.0x Advanced Micro Devices, Inc. United States 2.55 -69% 1,821.2 2,861.2 1,002.0 2,042.0 5,422.0 9.0 0.2% -17.4% 0.5x NM Akamai Technologies, Inc. United States 35.16 -17% 6,257.5 5,820.2 437.6 - 1,373.9 501.1 36.5% 18.6% 4.2x 11.6x AVG Technologies N.V. Netherlands 13.70 -16% 740.0 785.3 51.9 97.2 356.0 99.3 27.9% 30.7% 2.2x 7.9x Brightcove, Inc. United States 6.22 -76% 174.3 146.2 30.0 - 88.0 (9.9) NM 38.4% 1.7x NM CA Technologies United States 25.01 -10% 11,402.7 10,283.7 2,560.0 1,441.0 4,680.0 1,690.0 36.1% -1.6% 2.2x 6.1x Carbonite, Inc. United States 10.89 -7% 282.2 226.9 55.3 - 84.0 (6.8) NM 38.9% 2.7x NM Check Point Software Tec hnologies Ltd. Israel 47.24 -27% 9,402.1 7,898.8 1,503.3 - 1,342.7 761.4 56.7% 7.7% 5.9x 10.4x ChinaCac he International Holdings Ltd. China $3.73 -38% $85.5 $41.9 $43.6 $0.0 $122.2 $14.2 11.6% 38.6% 0.3x 2.9x Citrix Systems, Inc. United States 71.40 -19% 13,309.2 12,380.6 928.6 - 2,586.1 609.8 23.6% 17.2% 4.8x 20.3x CommVault Systems, Inc. * United States 83.29 -4% 3,844.5 3,447.3 397.2 - 471.6 77.6 16.5% 23.4% 7.3x 44.4x Cray Inc. United States 22.47 0% 836.6 531.0 305.6 - 421.1 38.3 9.1% 78.4% 1.3x 13.8x Crossroads Systems, Inc. United States 2.15 -66% 25.4 25.6 6.9 4.3 15.0 (10.0) NM 7.2% 1.7x NM Dat alink Corporat ion United States 12.27 -3% 228.6 224.3 10.3 6.0 491.2 23.9 4.9% 29.3% 0.5x 9.4x Dell Inc . United States 14.34 -15% 25,055.1 21,384.1 12,777.0 9,085.0 56,940.0 4,223.0 7.4% -8.3% 0.4x 5.1x Dot Hill Syst ems Corp. United States 1.09 -32% 64.0 26.5 40.5 1.8 194.5 (6.3) NM -0.7% 0.1x NM Eldlecom Co., Ltd. Japan 14.27 -41% 314.0 233.5 115.5 27.3 738.4 81.9 11.1% 5.6% 0.3x 2.8x EMC Corporation United States 23.83 -21% 50,056.1 46,765.8 6,167.1 1,710.1 21,713.9 5,180.4 23.9% 8.5% 2.2x 9.0x ePlus inc . United States 46.38 -6% 378.0 452.6 43.4 117.9 965.8 72.7 7.5% 43.5% 0.5x 6.2x Euronet Worldwide Inc . United States 25.96 -1% 1,287.7 1,402.0 191.2 301.2 1,267.6 150.9 11.9% 9.2% 1.1x 9.3x F-Secure Oyj Finland 2.15 -18% 333.5 291.0 43.9 - 207.2 43.0 20.7% 7.6% 1.4x 6.8x Fusion-io, Inc. * United States 16.39 -50% 1,583.2 1,214.6 368.5 - 439.5 24.0 5.5% 47.8% 2.8x 50.6x Gemalt o NV Netherlands 86.44 -11% 7,268.1 6,836.5 395.3 20.6 2,960.6 420.3 14.2% 11.4% 2.3x 16.3x Google Inc. United States 802.66 -5% 264,607.5 223,729.5 48,088.0 7,210.0 50,175.0 16,278.0 32.4% 32.4% 4.5x 13.7x GraphOn Corp. United States 0.51 -18% 44.1 39.2 4.9 - 6.7 (3.4) NM 1.9% 5.9x NM Green Dot Corporation United States 16.52 -39% 594.6 236.5 408.8 50.7 554.5 81.7 14.7% 14.4% 0.4x 2.9x Imperva Inc. UitdUnit ed SttStates 38. 06 -10% 932. 8 829. 3 102. 3 - 104. 2 (5. 3) NM 33.1 % 808.0xNM Integrated Electrical Services, Inc. United States 6.40 -2% 96.7 88.3 20.9 12.5 474.4 5.0 1.1% 17.0% 0.2x 17.6x Intel Corporation United States 21.83 -25% 107,971.2 103,344.2 18,195.0 13,568.0 53,341.0 22,160.0 41.5% -1.2% 1.9x 4.7x IBM Corporation United States 210.89 -2% 235,039.0 257,256.0 11,176.0 33,269.0 104,507.0 26,858.0 25.7% -2.3% 2.5x 9.6x Interxion Holding NV Netherlands 24.07 -10% 1,641.0 1,930.3 90.6 379.9 365.4 143.9 39.4% 13.4% 5.3x 13.4x J-Stream Inc. Japan 562.65 -10% 65.5 52.5 16.0 - 61.7 5.1 8.2% 2.4% 0.9x 10.4x Keynot e Syst ems, Inc . United States 14.15 -30% 258.5 207.3 51.2 - 125.2 16.4 13.1% 12.5% 1.7x 12.7x Limelight Networks, Inc. United States 2.19 -36% 212.5 86.7 128.0 2.1 180.2 (5.0) NM 5.2% 0.5x NM LogMeIn, Inc. United States 19.12 -50% 474.4 262.4 212.1 - 138.8 13.7 9.9% 16.2% 1.9x 19.1x LSI Corporation United States 6.73 -24% 3,699.8 3,023.8 676.0 - 2,506.1 366.6 14.6% 22.6% 1.2x 8.2x MlbMelbourne IT Ltd. AtliAustralia 2162.16 -15% 178. 2 195. 3 18. 5 35. 6 177. 1 24. 3 13. 7% -51%5.1% 111.1x 808.0x Micron Technology Inc. United States 9.96 -3% 10,176.9 12,328.9 2,271.0 3,435.0 8,047.0 1,510.0 18.8% -4.0% 1.5x 8.2x Microsoft Corporation United States 28.37 -14% 237,634.1 183,754.1 68,098.0 14,218.0 72,930.0 28,867.0 39.6% 1.2% 2.5x 6.4x NEC Corporation Japan 2.66 -10% 6,910.7 13,805.9 2,356.7 8,489.0 35,776.2 2,656.8 7.4% 1.9% 0.4x 5.2x Net App, Inc . United States 33.70 -28% 12,145.7 7,659.4 6,723.9 2,237.6 6,318.4 857.5 13.6% 6.0% 1.2x 8.9x Oracle Corporation United States 31.95 -12% 150,505.5 137,292.5 33,695.0 19,757.0 37,149.0 17,286.0 46.5% 0.5% 3.7x 7.9x ProAct IT Group AB Sweden 13.96 -38% 130.0 144.6 15.8 28.9 373.7 22.2 5.9% 9.0% 0.4x 6.5x QUALCOMM Incorporated United States 66.68 -3% 114,564.9 101,340.9 13,275.0 31.0 20,458.0 7,226.0 35.3% 25.6% 5.0x 14.0x Qualys, Inc. * United States 12.13 -26% 382.7 266.2 118.4 2.0 91.4 10.3 11.3% 20.0% 2.9x 25.7x Quantum Corporation United States 1.30 -52% 313.3 466.9 51.3 205.0 607.9 0.1 0.0% -7.5% 0.8x NM Rac kspac e Host ing, Inc . United States 49. 74 -39% 6, 863. 2 6, 696. 5 292. 1 125. 4 1, 309. 2 422. 6 32. 3% 27. 7% 515.1x 15. 8x Red Hat , Inc . * United States 49.97 -20% 9,653.9 8,774.4 886.3 - 1,328.8 266.5 20.1% 17.3% 6.6x 32.9x SanDisk Corp. United States 54.98 -3% 13,296.7 12,113.6 2,875.5 1,696.6 5,052.5 1,108.3 21.9% -10.8% 2.4x 10.9x SAP AG Germany 79.15 -5% 94,312.5 97,495.3 3,466.3 6,918.1 21,389.7 7,223.9 33.8% 14.0% 4.6x 13.5x Seagate Technology Public Limited Company Ireland 36.68 -3% 13,163.0 14,123.0 1,872.0 2,818.0 16,332.0 4,342.0 26.6% 41.3% 0.9x 3.3x
M&A & INVESTMENT SUMMARY MARCH 2013 27 TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Silic on Graphic s International Corp. United States 13.88 -13% 452.2 328.0 124.1 - 743.0 (6.3) NM 4.2% 0.4x NM SK Hynix, Inc. South Korea 26.49 -5% 18,385.2 22,600.0 1,677.9 6,085.1 9,554.8 2,798.3 29.3% -2.2% 2.4x 8.1x Sony Corporation Japan 17.75 -5% 17,942.1 23,271.7 15,680.4 16,036.6 76,815.4 3,393.8 4.4% 2.6% 0.3x 6.9x Splunk, Inc. * United States 40.02 -2% 3,946.6 3,640.6 305.9 - 198.9 (17.4) NM 64.5% 18.3x NM Symantec Corporation United States 24.53 -2% 16,905.8 15,729.8 4,252.0 3,076.0 6,839.0 1,839.0 26.9% 1.7% 2.3x 8.6x Synchronoss Technologies, Inc. United States 30.00 -10% 1,134.2 1,087.6 56.2 9.5 273.7 60.6 22.2% 19.5% 4.0x 17.9x Teradata Corporation United States 57.25 -29% 9,449.6 8,994.6 729.0 274.0 2,665.0 662.0 24.8% 12.8% 3.4x 13.6x Trend Micro Inc. Japan 28.43 -6% 3,740.2 2,481.0 1,374.0 - 1,084.9 345.7 31.9% -2.6% 2.3x 7.2x The KEYW Holding Corporation * United States 16.33 0% 596.4 680.5 5.6 89.7 243.5 29.0 11.9% 27.8% 2.8x 23.5x Unisys Corporation United States 22.96 -7% 1,013.0 828.9 655.6 210.3 3,706.4 373.9 10.1% -3.8% 0.2x 2.2x VeriSign, Inc. United States 47.12 -6% 7,188.7 6,329.9 1,556.4 697.6 873.6 511.4 58.5% 13.2% 7.2x 12.4x VMware, Inc. * United States 78.56 -34% 33,650.9 29,470.1 4,630.8 450.0 4,605.0 1,160.0 25.2% 22.2% 6.4x 25.4x Western Digital Corporation United States 50.14 -2% 12,066.9 10,378.9 3,816.0 2,128.0 15,648.0 3,792.0 24.2% 67.5% 0.7x 2.7x Xoom Corporation * United States 22.93 -7% 730.1 699.9 70.2 40.0 80.0 (2.8) NM 60.0% 8.7x NM
Adjusted Weighted Average 3.3x 9.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.8x)
M&A & INVESTMENT SUMMARY MARCH 2013 28 SOFTWARE Transactions by Subsegment and Buyer Type
• There were 51 transactions announced in the Software segment, of which 27 reported $907 million in value • Select acquisitions › Allscripts Healthcare Solutions’ $235 million acquisition of a 75 percent stake in dbMotion, a developer of system interfaces and data analytics tools for healthcare providers, and its acquisition of Jardogs, a developer of personal health record tools for outcomes management and home monitoring, as well as an in-office kiosk for automati ng patient regi st rati on and billing › Apple’s $20 million acquisition if WifiSlam, an indoor-GPS company that has developed ways for mobile apps to detect a phone user’s location in a building using Wi-Fi signals › SlideRocket’s acquisition of ClearSlide, which provides online presentation software solutions that connects users with their audience, co-workers, and Web-based content, from VMware • Select investments › The $50 million investment in Actifio, a maker of virtualization data storage software systems for reducing repetitive copies of data, led by Technology Crossover Ventures, at a valuation of approximately $500 million › The $45 million investment in AccessData Group, a company offering a suite of stand-alone and enterprise- class tools that enable digital investigations, from Sorenson Capital Partners and Silicon Valley Bank
SOFTWARE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Security 8 16% 134.0 15% 2 100.0 0 - 6 34.0 ERP 7 14% 17.2 2% 4 - 1 5.4 2 11.8 Healthcare 7 14% 239. 0 26% 6 235. 0 0 - 1 404.0 Legal 5 10% 203.3 22% 3 157.3 0 - 2 46.0 Application Management 4 8% 6.0 1% 3 - 0 - 1 6.0 Data Management 3 6% 50.0 6% 2 - 0 - 1 50.0 Software Development Tools 3 6% 17.8 2% 0 - 0 - 3 17.8 Financial 2 4% 164.2 18% 1 164.2 1 - 0 - Other * 10 20% 67. 7 7% 6 29. 5 0 - 4 38. 2 Total 51 100% 907.2 100% 28 686.0 2 5.4 21 215.8 *Other includes Collaboration, Credit/Risk, Engineering, Geo-Demo, HR, and Infrastructure
M&A & INVESTMENT SUMMARY MARCH 2013 29 SOFTWARE PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Financial & Credit/Risk Management Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Advent Software, Inc. United States 27.97 -6% 1,412.3 1,337.9 169.4 95.0 358.8 76.0 21.2% 10.0% 3.7x 17.6x Ebix Inc. United States 16.22 -35% 602.5 646.8 37.4 81.7 199.4 84.5 42.4% 18.0% 3.2x 7.7x EPIQ Systems, Inc . United States 14.03 -1% 504.0 712.6 3.8 212.4 344.8 74.5 21.6% 32.0% 2.1x 9.6x Fidessa group plc United Kingdom 29.51 -3% 1,093.3 983.9 117.2 - 452.9 92.2 20.4% 0.1% 2.2x 10.7x Guidewire Software, Inc. * United States 38.44 -1% 2,169.9 2,004.1 165.8 - 260.1 18.7 7.2% 28.2% 7.7x 107.0x Innovation Group plc United Kingdom 0.39 0% 376.7 340.8 72.0 30.0 312.3 30.6 9.8% 10.2% 1.1x 11.1x Management Consulting Group PLC United Kingdom 0.47 -21% 229.0 274.9 24.2 73.4 464.5 43.6 9.4% -5.6% 0.6x 6.3x Model N, Inc. United States 19. 82 -11% 424. 9 417. 5 12. 7 5. 3 88. 5 1. 5 17%1.7% 00%0.0% 474.7x NM NetSuite Inc . * United States 80.06 0% 5,864.6 5,681.8 185.9 3.0 308.8 (16.1) NM 30.7% 18.4x NM Performant Financial Corporation United States 12.28 -13% 573.7 683.7 37.8 147.8 210.1 67.5 32.1% 28.9% 3.3x 10.1x RealPage, Inc . United States 20.71 -23% 1,568.8 1,545.0 33.8 10.0 322.2 52.9 16.4% 24.9% 4.8x 29.2x Solera Holdings Inc . United States 58.33 -1% 4,018.2 4,820.8 448.2 1,152.6 801.3 338.8 42.3% 6.6% 6.0x 14.2x SS&C Tec hnologies Holdings, Inc . United States 29.98 -1% 2,423.7 3,349.7 86.2 1,012.1 551.8 212.8 38.6% 48.8% 6.1x 15.7x Temenos Group AG Switzerland 23.78 0% 1,643.5 1,736.3 117.7 214.4 450.2 70.3 15.6% -4.9% 3.9x 24.7x Tyler Technologies, Inc. United States 61.26 1% 1,928.6 1,940.2 6.4 18.0 363.3 69.3 19.1% 17.4% 5.3x 28.0x
Adjusted Weighted Average 5.0x 17.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (13.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (49.0x)
Healthcare Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accelrys Inc. United States 9.76 -2% 542.8 443.2 99.6 - 162.5 12.0 7.4% 12.6% 2.7x 37.0x Allscripts Healthcare Solutions, Inc. United States 13.59 -20% 2,399.2 2,739.5 104.0 444.3 1,446.3 124.3 8.6% 0.2% 1.9x 22.0x Athenahealth, Inc. * United States 97.04 -3% 3,525.7 3,332.6 193.1 - 422.3 51.1 12.1% 30.3% 7.9x 65.3x Cegedim SA France 32.06 -9% 447.9 1,072.1 57.3 698.4 1,215.3 201.9 16.6% 1.1% 0.9x 5.3x Cerner Corporation United States 94.74 1% 16,315.0 15,474.3 1,036.8 196.1 2,610.1 712.5 27.3% 20.9% 5.9x 21.7x Co mput e r P ro gra ms & S y s t e ms Inc . United States 54.11 -13% 599.5 580.0 19.6 - 183.3 44.4 24.2% 5.7% 3.2x 13.0x Craneware plc United Kingdom 6.71 -9% 181.2 154.5 28.6 - 42.4 12.1 28.4% 5.3% 3.6x 12.8x Greenway Medical Technologies, Inc. * United States 15.90 -19% 471.0 443.7 27.4 - 134.7 7.9 5.9% 27.4% 3.3x 56.0x McKesson Corporation United States 107.96 -3% 25,142.7 26,895.7 2,726.0 4,479.0 123,534.0 2,846.0 2.3% 3.0% 0.2x 9.5x MedAssets, Inc. United States 19.25 -4% 1,144.6 2,025.2 13.7 894.3 640.1 194.9 30.5% 10.7% 3.2x 10.4x Medidata Solutions, Inc. United States 57.98 2% 1,539.0 1,416.6 122.6 0.2 218.3 36.1 16.6% 18.4% 6.5x 39.2x Merge Healthc are Inc orporated United States 2.89 -51% 270.1 483.6 37.1 250.1 248.9 30.9 12.4% 7.1% 1.9x 15.6x Quality Systems Inc. United States 18.27 -59% 1,087.7 981.0 106.7 - 457.9 108.0 23.6% 9.6% 2.1x 9.1x Streamline Health Solutions, Inc. United States 6.45 -4% 81.5 91.9 10.5 17.9 21.5 2.7 12.6% 23.0% 4.3x 33.8x
Adjusted Weighted Average 2.6x 15.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (43.7x)
M&A & INVESTMENT SUMMARY MARCH 2013 30 SOFTWARE PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
HR Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 51job Inc. China 59.41 -7% 1,716.6 1,310.4 406.1 - 232.2 82.4 35.5% 11.4% 5.6x 15.9x Allocate Software plc. United Kingdom 1.03 -25% 66.2 63.0 9.8 6.4 58.7 6.9 11.7% 21.3% 1.1x 9.2x Concur Technologies, Inc. United States 68.66 -10% 3,818.6 3,589.0 484.6 254.8 462.2 44.8 9.7% 25.1% 7.8x 80.1x Cornerstone OnDemand, Inc. United States 34.10 -4% 1,733.5 1,662.7 76.4 5.6 117.9 (27.5) NM 61.5% 14.1x NM Dic e Holdings, Inc . United States 10.13 -8% 593.5 597.3 42.2 46.0 195.4 71.3 36.5% 9.1% 3.1x 8.4x LinkedIn Corporation * United States 176.06 -4% 19,200.0 18,450.4 749.5 - 972.3 125.5 12.9% 86.2% 19.0x 147.0x Monster Worldwide, Inc. United States 5.07 -49% 563.4 579.5 148.2 164.2 890.4 142.5 16.0% -10.4% 0.7x 4.1x Saba Software, Inc. United States 7957.95 -30% 236. 8 222. 6 15. 0 0. 9 121. 3 (9. 8) NM 77%7.7% 181.8x NM The Ultimate Software Group, Inc. United States 104.16 -2% 2,867.5 2,809.8 68.0 10.3 332.3 41.4 12.5% 23.4% 8.5x 67.8x Workday, Inc. * United States 61.63 -5% 10,230.6 9,465.2 790.3 25.0 273.7 (88.8) NM 103.6% 34.6x NM
Adjusted Weighted Average 14.8x 55.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (30.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (101.1x)
Security Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Head quarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AVG Technologies N.V. Netherlands 13.92 -15% 751.9 797.2 51.9 97.2 356.0 99.3 27.9% 30.7% 2.2x 8.0x Checkpoint Systems Inc. United States 13.06 -6% 532.6 527.7 118.8 113.3 690.8 38.5 5.6% -9.6% 0.8x 13.7x Cisco Systems, Inc. United States 20.90 -5% 111,411.6 81,336.6 46,376.0 16,291.0 47,252.0 13,356.0 28.3% 5.4% 1.7x 6.1x Fortinet Inc. United States 23.68 -18% 3,826.9 3,413.2 413.7 - 533.6 111.4 20.9% 23.1% 6.4x 30.6x Infoblox Inc . United States 21.70 -10% 1,060.5 880.6 179.8 - 192.4 (3.4) NM 26.7% 4.6x NM Symantec Corporation United States 24.68 -1% 17,009.2 15,833.2 4,252.0 3,076.0 6,839.0 1,839.0 26.9% 1.7% 2.3x 8.6x Websense, Inc. United States 15.00 -32% 548.4 553.7 64.6 69.9 361.5 61.9 17.1% -0.7% 1.5x 8.9x Gemalt o NV Netherlands 87.27 -10% 7,338.3 6,905.1 472.8 13.5 2,960.6 420.3 14.2% 11.4% 2.3x 16.4x Imperva Inc. United States 38.50 -9% 943.6 840.1 102.3 - 104.2 (5.3) NM 33.1% 8.1x NM Juniper Networks, Inc . United States 18. 54 -20% 9, 444. 8 7, 595. 2 2, 849. 3 999. 2 4, 365. 4 596. 8 13. 7% -19%1.9% 17x1.7x 12. 7x NQ Mobile Inc . * China 9.01 -29% 395.9 273.3 127.9 - 91.8 3.9 4.2% 125.6% 3.0x 70.1x Palo Alto Networks, Inc. United States 56.60 -22% 3,912.9 3,575.4 337.4 - 323.8 (1.4) NM 74.8% 11.0x NM Proofpoint, Inc. United States 16.86 -5% 557.1 474.6 86.5 4.0 106.3 (12.1) NM 29.9% 4.5x NM Qihoo 360 Technology Co. Ltd * China 29.63 -15% 3,536.4 3,155.7 380.8 - 329.0 66.7 20.3% 96.0% 9.6x 47.3x Sourcefire, Inc. * United States 59.23 -1% 1,796.3 1,612.2 184.1 - 223.1 18.0 8.1% 34.7% 7.2x 89.4x Trend Micro Inc. Japan 27.97 -7% 3,680.3 2,416.8 1,374.0 - 1,084.9 345.7 31.9% -2.6% 2.2x 7.0x VeriSign, Inc. United States 47.27 -6% 7,211.6 6,352.7 1,556.4 697.6 873.6 511.4 58.5% 13.2% 7.3x 12.4x
Adjusted Weighted Average 2.4x 9.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (52.4x)
M&A & INVESTMENT SUMMARY MARCH 2013 31 SOFTWARE PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Engineering Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Ansys, Inc. United States 81.42 0% 7,567.2 7,043.2 577.2 53.1 798.0 379.9 47.6% 15.4% 8.8x 18.5x Autodesk, Inc. United States 41.25 -3% 9,231.8 8,023.1 1,954.3 745.6 2,312.2 477.6 20.7% 4.4% 3.5x 16.8x Aveva Group plc United Kingdom 34.35 -3% 2,335.1 2,082.7 268.3 - 335.9 99.7 29.7% 15.3% 6.2x 20.9x
Adjusted Weighted Average 5.9x 17.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (20.8x)
Infrastructure Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA BMC Software Inc. United States 46.33 -3% 6,620.0 6,781.5 1,181.5 1,343.0 2,197.5 608.2 27.7% 1.3% 3.1x 11.2x CA Technologies United States 25.18 -10% 11,480.2 10,361.2 2,560.0 1,441.0 4,680.0 1,690.0 36.1% -1.6% 2.2x 6.1x CommVault Systems, Inc. * United States 82.00 -6% 3,785.0 3,387.7 397.2 - 471.6 77.6 16.5% 23.4% 7.2x 43.6x Daegis Inc . United States 1.14 -34% 16.8 30.6 4.4 18.2 40.2 3.3 8.1% -11.5% 0.8x 9.4x Guidance Software, Inc. United States 10.85 -17% 277.8 245.7 32.6 0.6 129.5 7.1 5.5% 23.8% 1.9x 34.7x Informatic a Corporation United States 34.47 -37% 3,717.2 3,184.1 535.6 - 811.6 180.3 22.2% 335%.5% 339.9x 17.7x IntraLinks Holdings, Inc . * United States 6.36 -8% 348.9 349.8 75.3 76.3 216.7 6.8 3.2% 1.8% 1.6x 51.2x Pervasive Software Inc . United States 9.17 -1% 155.0 109.3 45.7 - 50.7 4.6 9.0% 2.8% 2.2x 23.9x ServiceNow, Inc. * United States 36.20 -13% 4,774.8 4,460.1 314.7 - 243.7 (21.6) NM 66.1% 18.3x NM TIBCO Software Inc. United States 20.22 -42% 3,245.9 3,002.7 806.7 563.4 1,036.7 210.1 20.3% 7.9% 2.9x 14.3x
Adjusted Weighted Average 3.3x 10.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (14.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (39.7x)
M&A & INVESTMENT SUMMARY MARCH 2013 32 COMMUNICATIONS Transactions by Subsegment and Buyer Type
• There were 10 transactions in the Communications segment in March, of which six reported $244 million in value • Select acquisitions › JDS Uniphase’s $85 million acquistion of UK-based Arieso, a provider of location-aware networking software for mobile carriers › Westell Technologies’ $30 million acquisition of Kentrox, which provides site monitoring, management, and control solutions for wireless and fixed line telecommunications carriers, cable, and broadband network providers › Oracle’s acquisition of Tekelec, a provider of network signaling, policy control, and subscriber data • Select investments › The $16 million investment in AppNeta, a maker of network and application performance management software, from returning investors that included Bain Capital Ventures, Egan-Managed Capital, JMI Equity, and Business Development Bank of Canada › The Bessemer Venture Partners-led $12 million investment Vasona Networks, a developer of software that enables mobile network operators to fine-tune all the traffic happening on their network
COMMUNICATIONS TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Software Defined Networking 3 30% 101.0 41% 2 85.0 0 - 1 16.0 Communications Software 2 20% 13.0 5% 0 - 0 - 2 13.0 Messaging &d& Mediation SfSoftware 2 20% - 0% 2 - 0 - 0 - Networking Equipment 2 20% 130.0 53% 2 130.0 0 - 0 - Enterprise Mobility 1 10% - 0% 0 - 0 - 1 - Total 10 100% 244.0 100% 6 215.0 0 0.0 4 29.0
M&A & INVESTMENT SUMMARY MARCH 2013 33 COMMUNICATIONS PUBLIC COMPANY VALUATION
($ in millions, except stock
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Aastra Technologies Ltd. Canada $19.92 -8% $229.9 $124.5 $107.7 0.2 $608.6 $37.5 6.2% -12.5% 0.2x 3.3x Acme Packet, Inc. * United States 29.22 -3% 2,019.4 1,661.1 358.2 - 274.4 9.1 3.3% -10.7% 6.1x 183.1x ADTRAN Inc. United States 19.93 -37% 1,237.0 1,054.1 228.9 46.0 620.6 70.2 11.3% -13.5% 1.7x 15.0x Advanced Media, Inc. Japan 610.33 -19% 93.1 70.5 24.7 - 15.4 (2.0) NM -10.0% 4.6x NM Alcatel-Lucent, S.A. France 1.31 -43% 2,971.6 3,772.8 6,498.8 6,343.2 19,046.7 982.3 5.2% -5.7% 0.2x 3.8x Allot Communications Ltd. Israel 12.41 -57% 404.2 261.2 142.9 - 104.8 12.9 12.3% 34.7% 2.5x 20.2x Ambient Corporation United States 2.53 -74% 42.2 28.8 13.3 - 42.8 (5.1) NM -31.1% 0.7x NM Anaren, Inc. United States 19.41 -7% 256.4 229.2 35.1 8.0 150.0 23.9 16.0 % -9.5% 1.5x 9.6x Aruba Networks, Inc. * United States 25.43 -5% 2,897.6 2,495.3 402.3 - 571.0 40.6 7.1% 22.8% 4.4x 61.5x AudioCodes Ltd. Israel 3.80 -20% 144.1 133.8 33.5 23.3 127.5 (0.9) NM -18.2% 1.0x NM Aviat Networks, Inc. United States 3.36 -14% 205.9 121.9 94.8 10.8 471.6 13.2 2.8% 4.2% 0.3x 9.2x Axesstel Inc. United States 1.27 -35% 30.7 39.2 1.9 10.4 59.7 4.9 8.2% 10.2% 0.7x 8.0x Blac kline GPS Corp. Canada 1.28 -13% 22.5 16.1 6.5 0.1 2.6 (3.0) NM 37.1% 6.1x NM Blonder Tongue Laboratories United States 1.30 -23% 8.1 15.9 0.2 8.0 29.4 (0.4) NM 6.0% 0.5x NM BroadSoft , Inc . United States 26.96 -41% 755.0 678.8 163.6 87.4 164.8 31.0 18.8% 19.4% 4.1x 21.9x Brocade Communications United States 5.79 -10% 2,611.6 2,827.6 683.6 899.6 2,265.9 493.0 21.8% 4.8% 1.2x 5.7x CalAmp Corp. United States 10.68 -7% 304.0 295.8 13.6 5.3 169.8 16.7 9.8% 30.6% 1.7x 17.8x Calix Inc. United States 8308.30 -12% 406. 0 359. 0 47. 0 - 330. 2 (1. 3) NM -42%4.2% 111.1x NM Ciena Corporation United States 16.02 -13% 1,626.5 2,414.2 637.2 1,425.0 1,870.3 88.9 4.8% 8.4% 1.3x 27.1x Cisco Systems, Inc. United States 20.83 -5% 111,065.0 80,990.0 46,376.0 16,291.0 47,252.0 13,356.0 28.3% 5.4% 1.7x 6.1x Clearfield, Inc . United States 5.94 -6% 76.3 60.1 16.1 - 38.6 4.6 11.9% 3.9% 1.6x 13.1x ClearOne, Inc. United States 8.16 -1% 74.4 18.9 55.5 - 46.4 5.6 12.0% 0.8% 0.4x 3.4x COM DEV International Ltd. Canada 3.88 -3% 296.1 296.9 26.4 20.3 213.7 30.9 14.4% 6.3% 1.4x 9.6x Communications Systems Inc. United States 9.83 -30% 83.3 54.4 30.6 1.6 104.2 5.5 5.3% -27.5% 0.5x 9.8x Corning Inc. United States 13.15 -10% 19,368.0 16,770.0 6,144.0 3,499.0 8,012.0 2,487.0 31.0% 1.5% 2.1x 6.7x CTX Virtual Technologies, Inc. United States 1.43 -24% 11.4 11.3 0.1 - 40.0 (0.5) NM 16.6% 0.3x NM DDS Wireless International Inc. Canada 2.21 -6% 30.6 23.5 7.2 - 40.8 3.9 9.5% -11.0% 0.6x 6.1x Dialogic , Inc . United States 1.99 -73% 31.6 103.3 6.5 78.3 160.0 (11.6) NM -19.2% 0.6x NM Digi International Inc. United States 9.22 -20% 241.2 139.6 101.5 - 190.9 20.5 10.7% -5.7% 0.7x 6.8x DragonWave Inc . Canada 1.60 -61% 61.0 44.1 36.4 19.1 104.7 (47.8) NM 102.9% 0.4x NM EchoStar Corp. United States 38.72 -3% 3,418.9 4,369.1 1,547.6 2,488.5 3,121.7 590.0 18.9% 13.0% 1.4x 7.4x Emulex Corporation United States 6.60 -38% 597.9 386.8 211.2 - 496.1 82.7 16.7% 2.8% 0.8x 4.7x Ericsson Sweden 12.49 -6% 40,131.9 33,042.5 12,007.6 4,664.5 34,982.1 4,013.8 11.5% 0.4% 0.9x 8.2x Extreme Networks Inc. United States 3.40 -23% 318.7 193.7 125.0 - 312.7 17.8 5.7% -4.4% 0.6x 10.9x F5 Networks, Inc. United States 88.72 -36% 6,972.6 6,454.9 517.7 - 1,420.3 474.8 33.4% 17.8% 4.5x 13.6x Finisar Corp. United States 13.30 -35% 1,242.6 1,025.4 265.5 40.0 930.8 68.4 7.3% -2.0% 1.1x 15.0x F le e t ma t ic s Gro up Limit e d Ireland 24.21 -12% 837.3 761.3 100.1 24.1 127.5 24.9 19.6% 38.1% 6.0x 30.5x Franklin Wireless Corp. United States 1.50 -40% 15.6 4.3 11.9 0.1 36.6 1.0 2.7% 78.6% 0.1x 4.2x Harmonic Inc . United States 5.77 -3% 664.7 463.5 201.2 - 530.5 35.2 6.6% -3.4% 0.9x 13.2x Harris Corporation United States 45.29 -13% 5,111.0 6,716.0 328.2 1,929.9 5,353.4 1,120.6 20.9% 2.5% 1.3x 6.0x Huawei Technology Co., Ltd. China 1.47 -29% 206.5 128.2 78.4 - 72.0 8.9 12.3% -6.7% 1.8x 14.5x Infoblox Inc. United States 21.35 -12% 1,043.4 863.5 179.8 - 192.4 (3.4) NM 26.7% 4.5x NM Interac tive Intelligenc e Group * United States 43.75 -4% 867.9 799.0 68.9 - 237.4 11.1 4.7% 13.3% 3.4x 72.0x JDS Uniphase Corporation United States 13.55 -13% 3,186.2 2,717.5 709.3 240.6 1,707.3 170.2 10.0% -2.5% 1.6x 16.0x Juniper Networks, Inc. United States 18.67 -19% 9,511.0 7,661.4 2,849.3 999.2 4,365.4 596.8 13.7% -1.9% 1.8x 12.8x KVH Industries Inc. United States 13.48 -10% 200.4 172.6 38.3 10.6 137.1 11.1 8.1% 21.8% 1.3x 15.6x Meru Networks, Inc. United States 6326.32 -6% 139. 4 126. 3 22. 9 9. 7 97. 5 (25. 4) NM 78%7.8% 13x1.3x NM Mitel Networks Corporation Canada 3.73 -27% 200.2 414.3 100.6 314.7 583.6 81.2 13.9% -3.8% 0.7x 5.1x Motorola Solutions, Inc. United States 63.56 0% 17,308.1 15,593.1 3,603.0 1,863.0 8,698.0 1,498.0 17.2% 6.0% 1.8x 10.4x Netgear Inc . United States 33.58 -18% 1,290.8 914.0 376.9 - 1,271.9 144.5 11.4% 7.7% 0.7x 6.3x Nokia Corporation Finland 3.24 -39% 12,037.7 8,002.7 13,370.7 7,379.5 39,786.4 891.3 2.2% -21.9% 0.2x 9.0x
M&A & INVESTMENT SUMMARY MARCH 2013 34 COMMUNICATIONS PUBLIC COMPANY VALUATION
($ in millions, except stock
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Nuance Communications, Inc. United States 20.11 -25% 6,360.3 7,738.8 961.1 2,335.0 1,753.1 379.4 21.6% 27.4% 4.4x 20.4x Numerex Corp. United States 12.66 -9% 226.9 230.3 4.9 8.3 66.7 6.5 9.8% 14.4% 3.4x 35.2x Optical Cable Corp. United States 4.20 -19% 26.1 34.9 0.5 9.9 83.5 6.5 7.7% 14.4% 0.4x 5.4x Palo Alto Networks, Inc. * United States 56.52 -22% 3,907.3 3,569.9 337.4 - 323.8 (1.4) NM 74.8% 11.0x NM PCTEL, Inc. United States 6.96 -11% 122.3 74.5 47.8 0.0 83.0 4.9 5.9% 10.1% 0.9x 15.3x PHAZAR CORP United States 1.13 -60% 2.6 2.0 0.6 - 5.8 (1.5) NM -20.3% 0.3x NM Plantronics, Inc. United States 43.54 -5% 1,854.7 1,545.8 328.9 20.0 735.6 147.6 20.1% 3.8% 2.1x 10.5x Polycom, Inc. United States 11.11 -42% 1,966.6 1,292.3 674.3 - 1,392.6 124.4 8.9% -0.7 % 0.9x 10.4x Procera Networks, Inc. United States 11.88 -54% 231.0 99.3 131.7 - 59.6 7.4 12.4% 34.3% 1.7x 13.4x QUALCOMM Incorporated United States 66.68 -3% 114,564.9 101,340.9 13,275.0 31.0 20,458.0 7,226.0 35.3% 25.6% 5.0x 14.0x Research In Motion Limited Canada 14.56 -20% 7,495.2 4,826.5 2,731.0 - 11,073.0 1,018.0 9.2% -39.9% 0.4x 4.7x RadiSys Corporat ion United States 4.66 -38% 132.8 134.5 33.2 34.9 286.1 12.0 4.2% -13.5% 0.5x 11.2x Radware Lt d. Israel 37.12 -9% 824.4 736.2 88.2 - 189.2 41.2 21.8% 13.3% 3.9x 17.9x RELM Wireless Corp. United States 2.27 -1% 30.7 24.2 6.6 0.0 27.6 3.3 12.0% 14.4% 0.9x 7.3x Riverbed Technology, Inc. United States 14.91 -49% 2,435.8 2,556.8 451.1 572.1 836.9 134.5 16.1% 15.2% 3.1x 19.0x Sandvine Corporation Canada 2.00 -7% 276.6 214.3 70.0 6.2 87.9 (0.6) NM -2.7% 2.4x NM ShoreTel, Inc. United States 3.57 -39% 209.7 179.6 52.1 22.0 284.4 (12.4) NM 29.3% 0.6x NM Sierra Wire less Inc. CdCanada 10. 69 -11% 329. 2 267. 5 63. 6 0. 7 397. 3 11. 8 3.0% 19.3% 0.7x 22.6x SolarWinds, Inc. * United States 57.69 -6% 4,324.8 4,095.9 229.0 - 269.0 132.5 49.2% 35.6% 15.2x 30.9x Solera Holdings Inc . United States 57.87 -1% 3,986.5 4,789.1 448.2 1,152.6 801.3 338.8 42.3% 6.6% 6.0x 14.1x Sonus Networks, Inc. United States 2.56 -15% 720.0 472.7 249.9 2.6 254.1 (20.5) NM -2.1% 1.9x NM S y mme t ric o m Inc . United States 4.46 -37% 179.9 109.1 70.8 - 228.6 13.4 5.9% 0.9% 0.5x 8.2x Telcoware Co Ltd South Korea 8.11 -21% 57.2 12.3 46.9 - 51.6 6.9 13.4% 13.5% 0.2x 1.8x TeleCommunication Systems United States 2.19 -24% 128.8 244.9 51.5 167.6 487.4 38.6 7.9% 14.6% 0.5x 6.3x Tellabs Inc. United States 2.08 -49% 743.5 139.1 799.5 195.1 1,052.6 12.3 1.2% -18.1% 0.1x 11.3x TESSCO Technologies Inc. United States 21.83 -18% 176.0 176.1 2.6 2.8 788.9 33.5 4.2% 17.9% 0.2x 5.3x Transmode Holding AB Sweden 12.54 -6% 348.5 290.7 57.9 - 155.3 30.7 19. 7% 10. 3% 19x1.9x 95x9.5x Ubiquitous Corporation * Japan 1,598.94 -20% 136.5 123.2 14.5 - 10.4 1.2 11.7% -11.6% 11.8x 100.8x Vecima Networks Inc. Canada 4.67 -21% 104.3 67.5 41.5 4.0 103.4 12.2 11.8% 29.8% 0.7x 5.5x Verint Systems Inc. United States 34.83 -3% 1,829.7 2,473.2 192.0 592.6 839.5 156.7 18.7% 7.3% 2.9x 15.8x ViaSat Inc. United States 48.44 -5% 2,175.2 2,653.4 112.7 586.4 1,051.6 126.3 12.0% 25.3% 2.5x 21.0x Vonage Holdings Corporation United States 2.86 -1% 612.3 573.3 97.1 58.1 849.1 123.2 14.5% -2.4% 0.7x 4.7x Westell Tec hnologies, Inc. United States 2.04 -17% 120.2 5.1 115.0 - 40.7 (8.2) NM -57.9% 0.1x NM ZTE Corp. * China 1.86 -35% 6,344.3 9,864.1 2,413.8 5,634.8 14,179.0 119.0 0.8% 9.1% 0.7x 82.9x
Adjusted Weighted Average 2.7x 10.4x
*Calc ulation 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 (45.3x)
M&A & INVESTMENT SUMMARY MARCH 2013 35 INFORMATION & BUSINESS SERVICES Transactions by Subsegment and Buyer Type
• A total of 12 acquisitions and 10 investments were announced in the Information & Business Services segment. Of these, seven reported $790 million in value • Select acquisitions › Temp Holdings’ $742 million acquisition of Japan-based temporary staffing agency Intelligence Holdings › FTI Consulting’ s acquisition of C2 Group, a company providing government affairs consulting services focusing on tax and corporate governance, financial services, and multiple transportation modes › MSW Research’s acquisition of comScore ARS (nka MSW.ARS Research), which operates as a marketing and advertising research company, from comScore › Wired Real Estate Group ‘s acquisition of Applied Computer Research, a database publishing company that provides IT market intelligence and directories of IT executives • Select investments › SSM Partners’ $15 million investment in OpinionLab, which helps companies collect and understand customer feedback data › Halyard Capital’s $15 million investment in OneSource Virtual HR, a company offering business process cloud-sourcing services
INFORMATION & BUSINESS SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM BPO 5 23% 15.0 2% 0 - 2 - 3 15.0 Legal Information 3 14% - 0% 3 - 0 - 0 - HR Information 2 9% 9.7 1% 0 - 0 - 2 9.7 Management Consulting 2 9% 8.0 1% 1 - 0 - 1 8.0 Market Research 2 9% 15.0 2% 1 - 0 - 1 15.0 Staffing 2 9% 742.0 94% 2 742.0 0 - 0 - Total 22 100% 790.2 100% 9 742.0 3 0.0 10 48.2 *Other includes Corporate Training, Financial Information, HR Consulting, IT Consulting/Systems Integration, IT Information, and Marketing Data
M&A & INVESTMENT SUMMARY MARCH 2013 36 INFORMATION PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Financial & Credit/Risk Management Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Broadridge Financial Solutions, Inc. United States 24.65 -1% 3,003.7 3,269.0 259.1 524.4 2,336.3 351.9 15.1% 3.4% 1.4x 9.3x Computershare Limited Australia 10.54 -8% 5,864.2 7,218.8 446.2 1,781.7 2,016.2 355.4 17.6% 24.6% 3.6x 20.3x CoreLogic, Inc. United States 25.56 -13% 2,501.2 3,130.7 171.0 798.9 1,567.6 325.3 20.7% 17.1% 2.0x 9.6x CoStar Group Inc. * United States 108.67 -1% 3,079.6 3,094.2 156.1 170.6 349.9 65.3 18.7% 39.0% 8.8x 47.4x DST Systems Inc. United States 70.63 -1% 3,126.7 3,653.4 431.1 1,101.5 2,576.6 372.6 14.5% 7.9% 1.4x 9.8x Dun & Bradstreet Corp. United States 82.02 -5% 3,295.1 4,440.0 149.1 1,290.9 1,663.0 539.8 32.5% -5.4% 2.7x 8.2x Envestnet, Inc. * United States 17.54 -2% 567.2 537.2 30.0 - 157.3 15.3 9.7% 27.7% 3.4x 35.2x Equifax Inc . United States 56. 63 -5% 6, 821. 2 8, 431. 1 146. 8 1, 730. 7 2, 160. 5 652. 4 30. 2% 10. 2% 39x3.9x 12. 9x Experian plc Ireland 17.08 -6% 16,860.7 18,972.1 627.0 2,740.0 4,621.0 1,533.0 33.2% 14.4% 4.1x 12.4x FactSet Research Systems Inc. United States 92.93 -15% 4,051.7 3,885.6 225.2 - 834.1 301.5 36.1% 8.1% 4.7x 12.9x Fair Isaac Corporation United States 45.89 -4% 1,628.8 2,042.0 90.8 504.0 696.1 191.7 27.5% 9.8% 2.9x 10.7x Fidelity National Information Services, Inc . United States 39.02 0% 11,491.0 15,521.0 517.6 4,394.9 5,807.6 1,629.5 28.1% 3.2% 2.7x 9.5x Financ ial Engines, Inc . * United States 36.16 -1% 1,738.2 1,557.2 181.2 - 185.8 32.5 17.5% 29.0% 8.4x 47.9x Lender Processing Services, Inc. United States 24.82 -20% 2,107.5 2,946.6 236.2 1,075.3 1,997.7 330.9 16.6% 0.7% 1.5x 8.9x Moody's Corp. United States 52.50 -6% 11,693.5 11,675.1 1,773.3 1,671.2 2,730.3 1,183.1 43.3% 19.7% 4.3x 9.9x Morningstar Inc. United States 69.01 -3% 3,203.7 2,885.2 321.4 - 658.3 195.4 29.7% 4.3% 4.4x 14.8x MSCI Inc. United States 34.04 -10% 4,107.1 4,707.6 434.3 865.5 950.1 428.9 45.1% 5.5% 5.0x 11.0x Reis, Inc . United States 15.29 -7% 166.5 161.5 15.0 - 31.2 6.2 20.0% 14.9% 5.2x 25.9x SEI Investments Co. United States 28.62 -2% 4,941.0 4,507.9 452.2 - 992.5 234.8 23.7% 6.8% 4.5x 19.2x The Dolan Company United States 2.49 -74% 75.5 238.5 15.6 192.0 254.3 31.7 12.4% -5.3% 0.9x 7.5x The Mc Graw- Hill Companies, Inc . United States 50.46 -14% 14,217.8 15,595.8 761.0 1,256.0 4,450.0 1,526.0 34.3% 12.5% 3.5x 10.2x Thomson Reuters Corporation United States 32.34 -2% 26,759.3 32,971.6 1,373.0 7,268.0 13,278.0 2,920.0 22.0% -3.8% 2.5x 11.3x Verisk Analytics, Inc. United States 61.55 0% 10,349.1 11,715.8 94.7 1,461.4 1,534.3 686.7 44.8% 15.2% 7.6x 17.1x
Adjusted Weighted Average 3.7x 12.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (28.3x)
Healthcare Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA National Research Corp. United States 57.79 -6% 399.4 403.9 8.3 12.8 86.4 27.4 31.7% 14.1% 4.7x 14.7x The Advisory Board Company United States 52.35 -5% 1,838.0 1,739.4 98.5 - 431.6 65.8 15.2% 26.8% 4.0x 26.4x
Adjusted Weighted Average 4.1x 24.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.3x)
M&A & INVESTMENT SUMMARY MARCH 2013 37 INFORMATION PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Marketing Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States 20.40 0% 1,506.1 1,581.2 186.2 261.6 1,109.5 223.4 20.1% -1.9% 1.4x 7.1x Alliance Data Systems Corporation United States 161.89 1% 8,074.1 16,403.5 893.4 9,222.7 3,641.4 1,111.2 30.5% 14.8% 4.5x 14.8x Arbitron Inc. United States 46.87 -1% 1,301.6 1,235.1 66.5 - 449.9 124.8 27.7% 6.5% 2.7x 9.9x Brainjuicer Group Plc United Kingdom 3.87 -31% 48.6 44.9 3.8 - 34.5 4.8 14.0% 20.6% 1.3x 9.3x Cello Group Plc United Kingdom 0.77 -6% 63.1 76.4 1.9 23.4 219.7 13.1 6.0% 1.2% 0.3x 5.8x Cision AB Sweden 8.69 -4% 128.9 182.6 8.6 62.4 149.8 22.6 15.1% 1.8% 1.2x 8.1x comScore, Inc. * United States 16.78 -25% 599.5 552.2 61.8 14.5 255.2 19.0 7.4% 9.8% 2.2x 29.1x Cross Marketing Inc. Japan 11. 95 -30% 70. 8 62. 2 11. 1 1. 5 63. 0 8. 6 13. 6% 23. 1% 10x1.0x 73x7.3x Ebiquity plc United Kingdom 1.45 -5% 81.0 104.1 7.0 30.7 95.7 15.1 15.8% 24.6% 1.1x 6.9x GfK SE Germany 50.46 -13% 1,841.9 2,398.6 87.9 608.6 1,997.1 261.4 13.1% 10.2% 1.2x 9.2x Harris Interac tive Inc. United States 1.68 -2% 97.1 89.7 11.1 3.7 140.7 11.0 7.8% -11.0% 0.6x 8.2x Hart e- Hanks Inc . United States 7.79 -21% 486.1 546.7 35.8 113.3 767.7 88.7 11.6% -5.4% 0.7x 6.2x InnerWorkings Inc . United States 15.14 -4% 760.4 808.1 17.2 65.0 797.7 37.4 4.7% 25.9% 1.0x 21.6x INTAGE Inc . Japan 25.25 -11% 254.0 246.1 59.9 50.3 449.5 56.6 12.6% 6.1% 0.5x 4.3x Ipsos SA France 35.01 -18% 1,585.8 2,400.2 174.4 1,006.9 2,359.4 266.7 11.3% 31.3% 1.0x 9.0x Keynote Systems, Inc. United States 13.96 -31% 255.0 203.8 51.2 - 125.2 16.4 13.1% 12.5% 1.6x 12.4x Macromill, Inc . Japan 12.55 -3% 349.8 314.0 103.2 60.6 182.5 45.2 24.8% 24.0% 1.7x 6.9x NeuSt ar, Inc . United States 46.53 -2% 3,077.4 3,320.8 343.9 587.3 831.4 370.1 44.5% 34.0% 4.0x 9.0x Nielsen Holdings N.V. Netherlands 35.82 2% 13,385.5 19,751.5 288.0 6,606.0 5,612.0 1,556.0 27.7% 1.4% 3.5x 12.7x Pearson plc United Kingdom 17.96 -9% 14,502.3 16,365.3 1,735.9 3,692.8 8,222.7 1,497.0 18.2% 5.0% 2.0x 10.9x Onvia Inc. * United States 3.83 -9% 32.8 20.6 12.3 - 22.0 0.7 3.1% -5.2% 0.9x 30.3x Solera Holdings Inc . United States 58.33 -1% 4,018.2 4,820.8 448.2 1,152.6 801.3 338.8 42.3% 6.6% 6.0x 14.2x YouGov PLC United Kingdom 1.08 -13% 103.3 93.7 11.7 0.5 92.5 8.1 8.7% -1.1% 1.0x 11.6x
Adjusted Weighted Average 2.8x 11.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (23.3x)
Other Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Corporate Executive Board Co. United States 58.16 -2% 1,941.1 2,409.2 72.7 540.8 622.7 147.1 23.6% 28.5% 3.9x 16.4x Forrester Research Inc. United States 31.65 -12% 706.9 473.2 228.7 - 292.9 43.4 14.8% 3.3% 1.6x 10.9x Gartner Inc. United States 54.41 1% 5,080.1 4,995.2 299.9 215.0 1,615.8 270.5 16.7% 10.0% 3.1x 18.5x IHS Inc . United States 104.72 -12% 6,883.6 7,620.4 345.0 1,064.6 1,569.7 352.4 22.4% 14.1% 4.9x 21.6x Informa plc Switzerland 7.99 -1% 4,817.3 6,034.6 38.8 1,343.0 2,003.3 581.4 29.0% -3.4% 3.0x 10.4x NIC Inc . United States 19.16 2% 1,256.7 1,194.3 62.4 - 211.1 49.6 23.5% 16.7% 5.7x 24.1x Proofpoint, Inc. United States 16.86 -5% 557.1 474.6 86.8 4.0 106.3 (12.1) NM 29.9% 4.5x NM Reed Elsevier plc United Kingdom 10.84 -1% 24,037.1 29,117.8 2,673.1 2,407.7 9,635.3 2,209.0 22.9% 2.3% 3.0x 13.2x SPS Commerce, Inc. * United States 42.67 2% 636.6 570.5 66.1 - 77.1 6.7 8.7% 33.0% 7.4x 85.1x Wolters Kluwer NV Netherlands 21.85 -2% 6,452.2 9,147.9 432.5 3,177.5 4,750.5 1,193.2 25.1% 7.4% 1.9x 7.7x
Adjusted Weighted Average 3.3x 14.2x
*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 (34.8x)
M&A & INVESTMENT SUMMARY MARCH 2013 38 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Consulting Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CRA International Inc. United States 22.37 -12% 228.1 175.3 55.5 - 270.4 24.7 9.1% -11.4% 0.6x 7.1x FTI Consulting, Inc. United States 37.66 -1% 1,485.4 2,051.7 156.8 723.0 1,576.9 248.7 15.8% 0.6% 1.3x 8.2x Information Servic es Group, Inc . United States 2.02 -1% 73.9 113.5 15.0 64.8 192.7 15.4 8.0% 4.5% 0.6x 7.4x Navigant Consulting Inc. United States 13.14 -10% 667.8 801.4 1.1 134.7 743.4 111.2 15.0% 6.9% 1.1x 7.2x ICF International Inc. United States 27.20 -2% 532.3 622.6 14.7 105.0 937.1 89.8 9.6% 11.5% 0.7x 6.9x Huron Consulting Group Inc. United States 40.32 -1% 846.9 1,015.2 25.2 193.4 626.0 118.7 19.0% 3.2% 1.6x 8.6x The Hackett Group, Inc. United States 4.57 -31% 145.3 153.4 16.9 25.0 209.3 19.2 9.2% 4.4% 0.7x 8.0x Towers Watson & Co. United States 69. 32 1% 5, 132. 4 5, 224. 8 455. 7 525. 0 3, 508. 2 663. 1 18. 9% 30%3.0% 15x1.5x 79x7.9x
Adjusted Weighted Average 1.4x 7.8x
*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 (19.5x)
HR Services Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Automatic Data Processing, Inc. United States 65.03 0% 31,540.7 30,148.6 1,421.4 29.3 10,507.0 1,908.2 18.2% 7.2% 2.9x 15.8x Barrett Business Services Inc. United States 52. 66 2% 369. 8 317. 8 62. 5 10. 0 402. 7 20. 3 50%5.0% 27. 9% 080.8x 15. 77x Capita PLC United Kingdom 13.64 -2% 8,895.2 10,918.0 533.0 2,700.0 5,447.9 885.2 16.2% 14.4% 2.0x 12.3x Dic e Holdings, Inc . United States 10.13 -8% 593.5 597.3 42.2 46.0 195.4 71.3 36.5% 9.1% 3.1x 8.4x Edenred SA France 32.74 -5% 7,387.8 7,358.3 1,931.6 1,830.0 1,406.8 528.7 37.6% 3.4% 5.2x 13.9x Insperity, Inc . United States 28.37 -17% 728.5 447.1 281.4 - 2,158.8 87.1 4.0% 9.2% 0.2x 5.1x LinkedIn Corporation * United States 176.06 -4% 19,200.0 18,450.4 749.5 - 972.3 125.5 12.9% 86.2% 19.0x 147.0x Marsh & McLennan Companies, Inc. United States 37.97 0% 20,821.7 21,496.7 2,307.0 2,918.0 11,924.0 2,178.0 18.3% 3.5% 1.8x 9.9x Monster Worldwide, Inc. United States 5.07 -49% 563.4 579.5 148.2 164.2 890.4 142.5 16.0% -10.4% 0.7x 4.1x Paychex, Inc. United States 35.06 0% 12,758.3 12,187.7 301.2 - 2,292.4 987.1 43.1% 4.2% 5.3x 12.3x Towers Watson & Co. United States 69.32 1% 5,132.4 5,224.8 455.7 525.0 3,508.2 663.1 18.9% 3.0% 1.5x 7.9x Wagg,eWorks, Inc . United States 25.03 -5% 802.7 542.1 305.1 44.4 177.3 28.7 16.2% 30.7% 3.1x 18.9x
Adjusted Weighted Average 3.0x 12.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (34.4x)
M&A & INVESTMENT SUMMARY MARCH 2013 39 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Staffing & Recruiting Services Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adecco S.A. Switzerland 54.84 -8% 10,355.2 11,596.3 1,166.1 2,580.1 27,076.3 1,207.7 4.5% 0.0% 0.4x 9.6x AMN Healthcare Services Inc. United States 15.83 -1% 725.8 879.0 5.7 158.9 954.0 67.5 7.1% 7.5% 0.9x 13.0x Brunel International NV Netherlands 42.21 -19% 1,020.1 894.1 83.7 - 1,622.5 96.5 5.9% 25.6% 0.6x 9.3x CDI Corp. United States 17.20 -8% 333.0 292.6 - - 1,105.0 42.4 3.8% 4.3% 0.3x 6.9x Cross Country Healthcare, Inc. * United States 5.31 -15% 167.4 190.8 7.5 34.5 442.6 3.2 0.7% 0.7% 0.4x 60.3x CTPartners Exec utive Search Inc. United States 3.77 -46% 26.4 17.1 14.9 5.6 128.4 3.5 2.7% 6.0% 0.1x 4.9x Groupe CRIT SA France 18.92 -17% 210.1 251.7 95.8 120.3 1,938.3 67.6 3.5% 7.3% 0.1x 3.7x Harvey Nash Group plc United Kingdom 1021.02 -9% 74. 6 96. 1 15. 4 37. 5 897. 1 18. 6 21%2.1% 19. 9% 01x0.1x 52x5.2x Hays plc United Kingdom 1.46 -5% 2,033.9 2,254.5 97.2 333.5 5,726.3 222.0 3.9% -0.6% 0.4x 10.2x Healthcare Locums Plc * United Kingdom 0.01 -88% 6.6 56.0 15.1 66.2 331.6 1.9 0.6% 7.4% 0.2x 29.8x Heidrick & Struggles International Inc . United States 14.95 -33% 270.0 152.4 117.6 - 443.8 33.0 7.4% -15.9% 0.3x 4.6x Hudson Global, Inc United States 3.94 -34% 126.0 87.7 38.7 0.3 777.6 7.6 1.0% -16.7% 0.1x 11.6x Impellam Group PLC United Kingdom 6.24 -13% 276.6 251.1 61.1 33.9 1,955.9 37.8 1.9% 7.0% 0.1x 6.6x Kelly Services, Inc. United States 18.68 -1% 694.5 682.3 76.3 64.1 5,450.5 96.8 1.8% -1.8% 0.1x 7.0x Kforce Inc. United States 16.37 -2% 565.0 585.7 1.4 22.1 1,082.5 25.6 2.4% 7.7% 0.5x 22.9x Korn/Ferry International United States 17.86 -8% 869.4 677.9 223.2 - 783.0 80.6 10.3% -0.8% 0.9x 8.4x ManpowerGroup Inc. United States 56.72 -1% 4,359.7 4,481.7 648.1 770.1 20,678.0 571.0 2.8% -6.0% 0.2x 7.8x Michael Page International plc United Kingdom 6.40 -14% 1,951.3 1,858.2 115.0 15.3 1,608.9 130.3 8.1% -2.9% 1.2x 14.3x On Assignment Inc. United States 25.31 -3% 1,343.6 1,743.1 13.9 439.6 1,239.7 128.1 10.3% 107.6% 1.4x 13.6x Proffice AB (Publ) Sweden 3.81 -11% 260.2 286.3 14.4 40.2 748.9 13.2 1.8% 2.2% 0.4x 21.7x Randstad Holding NV Netherlands 40.96 -7% 7,066.8 8,469.7 255.0 1,697.1 22,528.6 677.4 3.0% 5.3% 0.4x 12.5x Resources Connection Inc. United States 12.70 -12% 520.8 406.8 113.9 - 566.9 50.9 9.0% 0.1% 0.7x 8.0x Robert Half International Inc. United States 37.53 1% 5,237.3 4,951.3 287.6 1.5 4,111.2 410.8 10.0% 8.8% 1.2x 12.1x Robert Walters plc United Kingdom 3.38 -16% 259.3 241.9 42.3 23.6 922.8 18.7 2.0% 7.5% 0.3x 12.9x SThree Plc. United Kingdom 5.26 -6% 629.3 586.4 45.3 - 925.6 46.8 5.1% 6.5% 0.6x 12.5x Synergie SA France 10.20 -15% 244.4 281.6 29.7 64.9 1,858.8 60.7 3.3% 6.8% 0.2x 4.6x TrueBlue, Inc. United States 21.14 -1% 819.9 690.5 129.5 0.1 1,389.5 71.9 5.2% 5.6% 0.5x 9.6x USG People NV Netherlands 8.57 -14% 683.2 1,004.7 52.4 412.1 3,792.2 121.1 3.2% -11.4% 0.3x 8.3x
Adjusted Weighted Average 0.7x 11.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (23.8x)
M&A & INVESTMENT SUMMARY MARCH 2013 40 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
IT Consulting/Systems Integration Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 03/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A.L.D. Advanced Logistics Developments Ltd. * Israel 0.17 -32% 4.0 4.5 - - 14.3 0.1 0.9% -5.2% 0.3x 35.2x Accenture plc Ireland 75.97 -3% 48,950.1 43,801.1 5,681.2 0.0 28,174.8 4,327.4 15.4% 3.3% 1.6x 10.1x Amdocs Limited Channel Islands 36.25 -1% 5,864.4 4,903.1 961.3 - 3,266.3 604.4 18.5% 1.8% 1.5x 8.1x Bec ht le AG Germany 46.47 -8% 975.9 923.1 69.2 82.0 2,764.6 134.6 4.9% 5.1% 0.3x 6.9x Booz Allen Hamilton Holding Corporation United States 13.44 -30% 1,859.2 3,268.0 317.6 1,726.4 5,753.4 524.0 9.1% -1.0% 0.6x 6.2x Broadridge Financial Solutions, Inc. United States 24.84 0% 3,026.9 3,292.2 259.1 524.4 2,336.3 351.9 15.1% 3.4% 1.4x 9.4x Business & Decision SA France 4.32 -44% 34.1 73.0 7.3 44.9 304.0 16.5 5.4% -2.0% 0.2x 4.4x Cap Gemini S. A. France 45. 53 -9% 7, 180. 7 6, 221. 4 1, 660. 6 1, 713. 9 13, 532. 9 1, 294. 7 96%9.6% 59%5.9% 05x0.5x 48x4.8x CGI Group, Inc. Canada 27.16 -3% 8,361.8 11,292.9 162.1 3,151.5 6,293.7 878.0 14.0% 50.7% 1.8x 12.9x Cognizant Technology Solutions Corporation United States 76.62 -5% 23,122.8 20,259.1 2,863.8 - 7,346.5 1,518.1 20.7% 20.0% 2.8x 13.3x Computer Sciences Corporation United States 49.23 -3% 7,556.0 8,002.0 2,203.0 2,629.0 15,784.0 1,830.0 11.6% 0.3% 0.5x 4.4x CSG Systems International Inc. United States 21.19 -9% 673.4 779.8 169.3 274.7 756.9 152.0 20.1% 3.0% 1.0x 5.1x Dynamics Research Corporation United States 5.96 -39% 61.7 150.8 0.0 89.1 317.0 31.0 9.8% -1.7% 0.5x 4.9x Information Servic es Group, Inc . United States 2.02 -1% 73.9 113.5 15.0 64.8 192.7 15.4 8.0% 4.5% 0.6x 7.4x Infosys Ltd. India 53.24 -4% 30,419.0 26,295.7 4,079.0 - 7,231.0 2,187.0 30.2% 5.9% 3.6x 12.0x iSoftStone Holdings Limited China 4.89 -46% 278.3 218.7 72.5 38.0 381.1 42.1 11.0% 34.5% 0.6x 5.2x ITS Group France 5.58 -23% 32.4 47.4 5.8 19.5 119.0 10.4 8.8% 6.1% 0.4x 4.6x NCI, Inc . United States 4.84 -40% 62.6 79.3 0.8 17.5 368.4 17.6 4.8% -34.0% 0.2x 4.5x Osiatis SA France 8.43 -2% 128.9 133.8 36.2 40.7 366.1 31.0 8.5% 10.8% 0.4x 4.3x Wipro Ltd. India 8.05 -4% 19,714.2 17,827.6 3,036.2 1,148.7 7,608.2 1,484.2 19.5% 17.5% 2.3x 12.0x
Adjusted Weighted Average 1.7x 10.6x
*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 (20.5x)
Business Process Outsourcing Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Comppyany Name Headquarters 03///28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Re v EV/EBITDA Communisis plc United Kingdom 0.77 -9% 147.1 177.6 15.8 59.0 373.5 31.1 8.3% 10.3% 0.5x 5.7x Contax Participacoes S.A. Brazil 13.12 -9% 846.2 1,222.2 186.5 544.8 1,766.7 203.7 11.5% 22.4% 0.7x 6.0x Eniro AB Sweden 1.79 -28% 179.4 608.8 30.4 455.5 614.2 148.7 24.2% -7.5% 1.0x 4.1x Exlservice Holdings, Inc. United States 32.88 0% 1,066.8 962.0 109.2 4.4 442.9 83.3 18.8% 22.9% 2.2x 11.5x Firstsource Solutions Limited India 0.19 -32% 123.8 143.4 141.2 160.4 502.3 47.2 9.4% 27.1% 0.3x 3.0x Genpac t Lt d. Bermuda 18.19 -7% 4,122.1 4,390.9 477.5 745.7 1,902.0 337.6 17.7% 18.8% 2.3x 13.0x MAXIMUS, Inc. United States 79.97 -1% 2,725.9 2,560.4 167.1 1.7 1,096.8 163.2 14.9% 14.8% 2.3x 15.7x Salmat Ltd. Australia 2.15 -26% 339.1 224.3 38.3 289.5 832.3 99.8 12.0% 17.9% 0.3x 2.2x Serco Group plc United Kingdom 9.51 -4% 4,664.9 5,549.7 343.2 1,349.7 7,985.4 630.3 7.9% 5.7% 0.7x 8.8x Trans Cosmos, Inc. Japan 14.86 0% 611.6 437.9 361.3 134.0 1,915.6 99.1 5.2% 5.1% 0.2x 4.4x Transcom WorldWide SA Luxembourg 0.14 -4% 160.8 211.1 56.2 106.5 798.4 20.3 2.5% 9.3% 0.3x 10.4x Xchanging PLC United Kingdom 2.02 -12% 484.9 402.2 189.2 64.4 1,086.2 118.8 10.9% 2.6% 0.4x 3.4x
Adjusted Weighted Average 1.5x 7.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (19.1x)
M&A & INVESTMENT SUMMARY MARCH 2013 41 MARCH SUMMARY TRADING VALUATION INFORMATION
Revenue Multiples Segment Name MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 3.0x 1.9x 5.0x 4.0x Digital Advertising 3.6x 2.5x 4.6x 4.5x Marketing Tec hnology 3.9x 3.3x 3.9x 3.7x Agenc y/Consulting 0.8x 0.8x 1.2x 1.2x Marketing Servic es 1.0x 0.7x 1.7x 1.1x Traditional Media 2.4x 2.3x 2.9x 2.6x Technology 2.8x 2.2x 3.3x 3.3x Software 5.2x 3.5x 7.8x 4.3x Communications 2.1x 1.2x 2.9x 2.7x Information 3.1x 2.9x 3.7x 2.3x Business Servic es 1.2x 0.6x 3.0x 2.0x
EBITDA Multiples Segment Name MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 22.8x 13.2x 26.9x 22.5x Digital Advertising 27.2x 15.4x 17.1x 14.6x Marketing Tec hnology 23. 4x 15. 33x 11. 2x 11. 3x Agenc y/Consulting 8.0x 7.0x 8.6x 8.5x Marketing Servic es 12.6x 6.4x 9.3x 8.9x Traditional Media 12.0x 8.7x 9.9x 10.1x Technology 12.4x 9.7x 10.3x 9.8x Software 28.4x 15.7x 32.5x 15.4x Communications 18.3x 10.6x 12.7x 10.4x Information 15.9x 11.1x 13.9x 13.9x Business Servic es 11.9x 8.3x 19.3x 11.2x
As of close of business on 03/28/13
*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
M&A & INVESTMENT SUMMARY MARCH 2013 42 PPLLC INDICES – LTM as of 3/28/13
Digital Media/Commerce Index Performance Agency Index Performance 120 130
• S&P 500 – 10.1% • S&P 500 – 10.1 %
120 110 • Digital Media/ • Agency/Consulting – 12.6% Commerce – 9.0% 110
100
100
90
90 Index Performance (%) Performance Index Index Performance (%) Performance Index
80 80 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13
S&P 500 Digital Media/Commerce S&P 500 Agency
Digital Advertising Marketing Services 130 Index Performance 130 Index Performance )
) • S&P 500 – 10.1 % • S&P 500 – 10.1 % %%
%% 120 120 • Digital Advertising – 15.6% • Marketing Services – 15.4%
110 110
100 100
90 ( Performance Index 90 Index Performance ( Performance Index
80 80 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13
S&P 500 Digital Advertising S&P 500 Marketing Services
Marketing Technology Traditional Media Index Performance Index Performance 120 140 • S&P 500 – 10.1 % • S&P 500 – 10.1 % )
) 130 110 %% • Marketing %% • Traditional Media – 32.3% Technology – 2.1% 120
100
110
90 100
90
80 ( Performance Index Index Performance ( Performance Index
80 70 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13
S&P 500 Marketing Technology S&P 500 Traditional Media
M&A & INVESTMENT SUMMARY MARCH 2013 43 PPLLC INDICES – LTM as of 3/28/13
Software Communications Index Performance Index Performance 130 120 • S&P 500 – 10.1 % • S&P 500 – 10.1 % 110 120 • Software – 14.4% • Communications – 4.5%
100 110
90
100 80
90
Index Performance (%) Performance Index 70 Index Performance (%) Performance Index
80 60 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13
S&P 500 Software S&P 500 Communications
Technology Index Performance 120 Information & Business Services Index Performance 130 • S&P 500 – 10.1 % ) • S&P 500 – 10.1 %
%% 110 • Technology – 0.8% 120 • Information – 16.6% 100 110 • Business Services – 10.4%
90 100
80 Index Performance ( Performance Index 90 Index Performance (%) Performance Index
70 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 80 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 S&P 500 Technology S&P 500 Information Business Services
M&A & INVESTMENT SUMMARY MARCH 2013 44 ALL SEGMENTS Strategic Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Strategic Values Disclosed Intelligence Holdings Temp Holdings Co., Ltd. $742.0 Naspers Ltd., Slando.ru and OLX.ru Avito.ru 570.0 Tensilica Cadence Design Systems, Inc. 380.0 Barringggp,ton Broadcasting Group, 18 TV Stations Sinclair Broadcast Group, Inc. 370.0 dbMotion, Inc. Allscripts 235.0 Outdoor Channel Holdings Kroenke Sports Enterprise 227.0 Computer Software Holdings Advanced Computer Software Group plc 164.2 Melbourne IT Digital Brand Services Inc. Corporation Service Company 157.3 Angel.com Incorporated Genesys Telecommunications Laboratories, Inc. 110.0 ID&T BV SFX Entertainment, Inc. 102.0 Tekelec Oracle Corporation 100.0 Mailbox Dropbox 100.0 PlPulse Lin ke dIn Corpora tion 100. 0 Appature, Inc. IMS Health, Inc. 100.0 nCircle Network Security, Inc. Tripwire, Inc. 100.0 Nimbula, Inc. Oracle Corporation 100.0 Arieso JDS Uniphase Corporation 85.0 Lonely Planet Publications NC2 Media 62.2 bloomspot, Inc. JP Morgan Chase & Co. 35.0 Kentrox, Inc. Westell Technologies, Inc. 30.0 Summly, Inc. Yahoo!, Inc. 30. 0 Amaze plc St. Ives Marketing Services 22.8 Torpedo7 The Warehouse Group Limited 20.0 WifiSLAM Apple Inc. 19.5 Sunshine Coast Broadcasters Eon Broadcasting 18.2 altosoft Corporation Kofax, Inc. 13.5 Firehole Technologies, Inc. Autodesk, Inc. 10.0 Pipeline Data Calpian, Inc. 9.8 Visual Revenue, Inc. Outbrain, Inc. 9.5 Hub Media Group Asiasons Investments Ltd. 4.6 MeNetworks Spindle, Inc. 4.0 Kids Games Club TabTale Ltd. 3.5 Bulbstorm ePrize LLC 3.5 SP Television, Four Television Stations Media Vista Group, LLC 3.5 Cauldron Consulting Porta Communications plc 2.9 Voetbalzone.nl PERFORM Group PLC 2.6 Salt Studios JMDE Packaging & Realties Ltd 2.0 AitAmiato Y Com bina tor 202.0 Priority Processing Systems Motopia Limited 1.7 Fanzy SAS Kima Ventures 0.6
M&A & INVESTMENT SUMMARY MARCH 2013 45 ALL SEGMENTS Strategic Transactions ($ in Millions) Repor ted Transaction Target Buyer/Investor Value Strategic Undisclosed Abou AddNode AB - AccessVia Perceptive Software, Inc. - Actiepagina.nl RetailMeNot.com - AdExc ite Q1Me dia- Applied Computer Research Wired Real Estate Group, Inc. - Appogee Ancoris Limited - AQS Insurity, Inc. - Bemoko Ltd. SDL Plc - Bidou.ca Nio, Inc. - Black Flyday, Deal Buzzer, My Shopping Circle, and 10% in Iconosys Monster Offers - Blazerfish Quadrant 4 Systems Corporation - blogTV.com YouNow - Bluem Yahoo Japan - BMG Rights Management GmbH Bertelsmann AG - C2 Group FTI Consulting, Inc. - Camilion SAP AG - Catalogik Rumblefish, Inc. - Cato Software Solutions Becton, Dickinson and Company - Cellad, Inc. World Assurance Group, Inc. - CERTPOINT Systems Infor - CHEFS and Cooking.com Target Corporation - Cobone.com Fz – LLC Tiger Global Management, LLC - ComicGenesis.com Red Giant Entertainment, Inc. - comScore ARS MSW Research - conTgo limited Concur Technologies, Inc. - Convonix Starcom MediaVest Group - CortaContas Brasil Compara Online S.A. - Creativebug, Inc. Demand Media, Inc. - CS Reklam Hizmetleri Sanayi Ve Ticaret Young & Rubicam, Inc. - Datria Systems, Inc. Intelligrated, Inc. - DNNresearch Google, Inc. - Duff Research PayPal, Inc. - Duttons Design Saintnicks - eDirect Impact Elijah Technologies - eDirect Impact IE Discovery - Element Fusion, Inc. Netsuite, Inc. -
M&A & INVESTMENT SUMMARY MARCH 2013 46 ALL SEGMENTS Strategic Transactions ($ in Millions) Repor ted Transaction Target Buyer/Investor Value Strategic Undisclosed ENQIO NGDATA - EQATEC Telerik, Inc. - GasBuddy Organization Inc. Oil Price Information Service, LLC - GiiGreenvision ThliTechnologies (Unname d) - Hill Associates AdvantEdge Healthcare Solutions, Inc. - ID7 Limited Fusion-io, Inc. - Independent Publications, Three Pennsylvania Newspapers Community Media Group, Inc. - Interactive Avenues Marketing Solutions IPG Mediabrands S.A. - iTRACS Corporation CommScope, Inc. - IVANS Property and Casualty Business Applied Systems, Inc. - Jardogs Allscripts - john st. WPP Group - Jybe Yahoo!, Inc. - Kayfabe News Rebellion Media Group Corp. - KitchMe Coupons.com - Konga.com Naspers Ltd. - La7 Cairo Communication SpA - Les Systemes Informatiques ACCEO Solutions, Inc. - Lighthouse Analyst Relations Kea Company - Lighthouse Practice Mangement Group Yodle, Inc. - Livestar Cold Brew Labs - Magma Issuu - Maporama Solutions TIBCO Software, Inc. - Media Interactive @titude Digital - Media People Media Horizons, Inc. - MetricsHub Microsoft Corporation - MetroFax j2 Global Communications, Inc. - Moboo Digital Marketing Industronics Berhad - MyDUIAttorney.Org LeadRival - Mytrus inVentiv Health, Inc. - NetComp Insurance Dovetail Insurace - Next-Tech Markets ePublishing, Inc. - Ninety Five 5 Franklin Cove yypy Company - Novo Technologies Komutel, Inc. - Nowbox YesVideo, Inc. - OCULUSai Meltwater Group -
M&A & INVESTMENT SUMMARY MARCH 2013 47 ALL SEGMENTS Strategic Transactions ($ in Millions) Repor ted Transaction Target Buyer/Investor Value Strategic Undisclosed Open Mile, Inc. Echo Global Logistics - Outsports.com Vox Media, Inc. - Pipeline Scheduling System and Dock Scheduling System AspenTech - Pitney Bowes, Internat iona l Ma il Serv ices (U. S. div is ion ) Lion Equ ity Partners, LLC - PlaySay Babbel - printerjack Hofmass - PS Suite EMR TELUS Health Solutions - Q Limited Tuchulcha Corporation - Resonate Knowledge Technologies OpenText Corporation - SF Bio Finnkino - SlideRocket ClearSlide, Inc. - Snuko Plc. Mobile Cloud Labs Plc. - Sole Collector Complex Media Network - SolveDirect Service Management Cisco Systems, Inc. - Spraydate Meetic - Statlistics and ConsumerBase, LLC Exact Data LLC - STL Technologies Ltd. Capita Group plc - Storylane Facebook - Strike Media Proprietary Ogilvy & Mather - Student Marketing Group, Inc. AlloyASL - Stuff4.com Rebellion Media Group Corp. - Swipe & Tap Limited Apposing Limited - TELETOON, CKQB-FM, and CJOT-FM Corus Entertainment, Inc. - Temploy Corporate Resource Services, Inc. - Thyron Payments Systems Spire Payments Holding S.a.r.l. - Tickle Tap Toca Boca - Tiny Post TripAdvisor, Inc. - Today's New Deal LifeApps Digital Media, Inc. - TriNovus Temenos Group AG - Twistage, Inc. Perceptive Software, Inc. - Unified Payments Net Element, Inc. - VoterTide Socialmentum, LLC - Wilico Wireless Networking Solutions Ace Marketin gg, & Promotions, Inc. - Xcellent Creations Double Encore -
M&A & INVESTMENT SUMMARY MARCH 2013 48 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value Buyout Deals Values Disclosed Checkpoint Systems, Inc. Platinum Equity Advisors, LLC $5.4 Zhong Sen International Tea Company (Private Investors) 0.1 Buyout Deals Undisclosed Concord Music Group, Inc. Wood Creek Capital Management, LLC - Davis + Henderson, Business Processing Businesses The Gores Group, LLC - GE Healthcare Strategic Sourcing The Gores Group, LLC - MSCI, CFRA Business (Private Investors) - Rose City Printing and Packaging River Associates Investments, LLC - Software (Europe) Ltd. Management Buyout - The Advocate (Private Investors) - Treat Me Management Buyout - VC/Growth Capital Values Disclosed Charter Communications Liberty Media Corporation $2,617.1 Sky Network Television Ltd. (Unnamed Fund Contibuters) 671.3 Domo, Inc. Institutional Venture Partners 60.0 Daisy Access Industries 60.0 Avito.ru Naspers Ltd. 50.0 Actifio, Inc. Technology Crossover Ventures 50.0 AccessData Group Sorenson Capital 45. 0 Pluribus Networks, Inc. China Broadband Capital 44.0 Diablo Technologies, Inc. Battery Ventures 35.5 Alloy Digital ABS Capital Partners 30.0 Bonobos, Inc. Glynn Capital Management 30.0 Anaplan, Inc. Meritech Capital Partners 30.0 Hybris Software Meritech Capital Partners 30.0 MapR Technologies, Inc. Mayfield Fund 30.0 Zalora (Thailand) Co., Ltd. Tengelmann Warenhandelsgesellschaft KG 26.0 Jumia Summit Partners LP 26.0 ShareThis, Inc. T-Venture Holding GmbH 23.0 Endgame, Inc. Paladin Capital 23.0 Farfetch.com Limited Conde Nast 20.0 Q2ebanking Battery Ventures 20.0 ProfitBricks GmbH United Internet AG 19.5 PeopleMatter Scale Venture Partners 19.0 AppNeta Bain Capital, LLC 16.0 Moovweb Jafco America Ventures, Inc. 16. 0 NewsCred Greycroft LLC 15.0 OneSource Virtual Halyard Capital 15.0 OpinionLab, Inc. SSM Partners 15.0
M&A & INVESTMENT SUMMARY MARCH 2013 49 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Demandbase, Inc. Scale Venture Partners $15.0 Evolv On Demand VantagePoint Capital Partners 15.0 iCarAsia carsales.com 13.9 Indochino Apparel, Inc. Highland Capital Partners 13.0 Vasona Networks, Inc. Bessemer Venture Partners 12.0 Pyramid Analytics BV Sequoia Capital 11.5 Metaps, Inc. Fidelity Growth Partners Europe 11.0 FindTheBest New World Ventures, LLC 11.0 Innovid, Inc. Vintage Investment Partners 11.0 QuorumLabs, Inc. Toba Capital 11.0 Bebestore Atomico Ventures 10.2 Clues Network Pvt. Ltd. Helion Venture Partners 10.0 SFX Entertainment, Inc. WPP Group 10.0 Photobucket Corporation Oak Investment Partners 10.0 Lincor Solutions Ltd. Edison Ventures 9.5 Vendasta Technologies, Inc. Vanedge Capital 8.3 Decide Vulcan Capital 8.0 High Street Partners, Inc. Baird Capital 8.0 Bloomfire, Inc. Austin Ventures 8.0 Nipendo Ltd. Horizons Ventures Ltd. 8.0 Kilopass Technology, Inc. (Unnamed Fund Contibuters) 808.0 Dachis Group Austin Ventures 7.5 ClearFit, Inc. GrandBanks Capital, Inc. 7.0 Tapad, Inc. FirstMark Capital 6.5 Style Haul, Inc. Bertelsmann Digital Media Investments 6.5 Retailigence Corporation Opt, Inc. 6.3 Bina Technologies, Inc. Sierra Ventures 6.3 Vidyard OMERS Ventures 6.0 Videdressing SAS Earlybird Venture Capital GmgH & Co. KG 6.0 LockerDome, LLC Cultivation Capital 6.0 Crushpath LLC The Social+Capital Partnership 6.0 Pneuron Corporation Safeguard Scientifics, Inc. 6.0 Appcore, LLC Telephone Acquisition Group, LLC 6.0 Spanning Cloud Apps, Inc. Foundry Group 6.0 Sift Science, Inc. Union Square Ventures 5.5 Dobleas FreakOut 5.4 Luxa Jafco America Ventures, Inc. 5.3 Tastemade, Inc. Redpoint Ventures 535.3 EverTrue, Inc. Bain Capital, LLC 5.3 BayRu, LLC (Unnamed Fund Contibuters) 5.0 Arkadium, Inc. Edison Ventures 5.0
M&A & INVESTMENT SUMMARY MARCH 2013 50 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Postmates, Inc. Founders Fund $5.0 Aktana, Inc. (Angel Investors) 5.0 500friends, Inc. Intel Capital 5.0 Avalanche Technology Rogers Ventures 5.0 Omada Health, Inc. U.S. Venture Partners 4.7 Rev.com, Inc. Globespan Capital Partners 4.5 Albumatic, Inc. RRE Investors 4.5 Rent the Runway American Express Company 4.4 Servio (Unnamed Fund Contibuters) 4.3 GoEuro Battery Ventures 4.0 Pathbrite, Inc. ACT 4.0 QPID, Inc. Cardinal Partners 4.0 Concurrent, Inc. True Ventures 4.0 Park City Group, Inc. (Unnamed Fund Contibuters) 3.8 Sophia Search Ltd. Atlantic Bridge 3.7 Handshakez Austin Ventures 3.6 tracx Social Media Management System Flybridge Capital Partners 3.5 Life360 BMW iVentures 3.5 coresystems ag (Private Investors) 3.2 clypd, Inc. Atlas Venture 3.2 AdzCentral Digital Media Partners 323.2 PeopleLinx LLC Osage Investments, Inc. 3.2 Catchpoint Systems, Inc. Battery Ventures 3.2 Canva, Inc. Matrix Partners 3.0 Nonstop Games Creandum 2.9 Masabi Fontinalis Partners, LLC 2.8 YaSabe Inc. 500 Startups 2.7 Developer Auction, Inc. NEA 2.7 Chope Singapore Press Holdings Ltd. 2.5 Cheerful Mind Fund 2.5 OpenX Software Ltd. Samsung Venture Investment Corporation 2.5 Knew Deal, Inc. Detroit Venture Partners, LLC 2.3 Scoot & Doodle, Inc. Pearson plc 2.3 TripleLift, Inc. True Ventures 2.1 Troop ID (Angel Investors) 2.1 Snoox (Unnamed Fund Contibuters) 2.0 Looker First Round Capital 2.0 GameSkinny CLR Partners, LLC 202.0 Epoxy, Inc. GRP Partners 2.0 Artist Growth LLC (Private Investors) 2.0 MessageMe, Inc. Andreessen Horowitz 1.9
M&A & INVESTMENT SUMMARY MARCH 2013 51 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Namo Media Andreessen Horowitz $1.9 Games2Win India Pvt. Ltd. Clearstone Venture Partners 1.8 Wide Open Spaces, Inc. Mercury Fund 1.8 Homejoy, Inc. Andreessen Horowitz 1.7 Centzy, Inc. Founder Collective 1.6 GiveGab Cayuga Venture Fund 1.5 Vistar Media, Inc. Mercury Fund 1.5 Ondore ALTA Ventures Mexico 1.5 Rexter Siemer Ventures 1.5 Casabu Limited Ingenious Ventures 1.4 AnyPerk Digital Garage, Inc. 1.4 AdStage, Inc. Freestyle Capital 1.4 GlobeSherpa, Inc. Oregon Angel Fund 1.3 TastemakerX, Inc. Baseline Ventures 1.3 GiveGab Great Oaks Venture Capital 1.2 Sherpa, Inc. Andreessen Horowitz 1.1 Slate Science, Inc. (Angel Investors) 1.1 Billaway Funding Farm 1.1 Divshot Rincon Venture Partners 1.1 We (Unnamed Fund Contibuters) 1.0 Visualnet, Inc. Kibo Ventures 101.0 Soldsie, Inc. 500 Startups 1.0 Contactually, Inc. Boston Seed Capital LLC 1.0 Contactually, Inc. Point Nine Capital 1.0 Joyride Freestyle Capital 1.0 SalesFUSION Hallett Capital 1.0 Lucena Research (Unnamed Fund Contibuters) 1.0 VALMARC Corporation (Unnamed Fund Contibuters) 1.0 MyPermissions 500 Startups 1.0 Qustodio W8 Ventures 1.0 Human De mand, Inc. (Private Inve stors) 0.9 Fligoo (Unnamed Fund Contibuters) 0.9 Import.io Ltd Wellington Partners 0.9 Mosaic Storage Systems, Inc. Borealis Ventures 0.9 Marxent Labs Stage 1 Ventures 0.8 Mention Alven Capital Partners 0.8 Landau Brothers LLC Detroit Venture Partners, LLC 0.8 Red e Productions LLC Yearling Management LLC 080.8 Discoverly Atlas Venture 0.8 Scringo (Angel Investors) 0.7 Festicket Ltd. Kima Ventures 0.7
M&A & INVESTMENT SUMMARY MARCH 2013 52 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed iCoolhunt S.r.l. (Private Investors) $0.7 Knok (Private Investors) 0.7 Uppidy, Inc. Band of Angels 0.6 FoodEssentials (Unnamed Fund Contibuters) 0.5 MEETiiN Innobridge International 0.5 VC/Growth Capital Undisclosed AgreeYa Mobility, Inc. Saama Capital - Aviacode, Inc. Heritage Group, LLC - BriefCam Ltd. Motorola Solutions Venture Capital - Health & Safety Institute DW Healthcare Partners - iStreamPlanet Co. Intel Capital - Kontexto, Inc. Spectral Capital CorporationSpectral Capital Corporation - Onlineprinters GmbH TA Associates - Qnary LLC Vandaele Capital - Sonar Media, Inc. Bing Fund - SourceHOV LLC Citi Venture Capital International - Thomsons Online Benefits Veronis Suhler Stevenson Partners, LLC - Wine in Black Bright Capital Digital - Wizehive, Inc. Gabriel Venture Partners - XOS Digital, Inc. (Unnamed Fund Contibuters) - Zappix Kormeli, LLC -
M&A & INVESTMENT SUMMARY MARCH 2013 53 Petsky Prunier: Maximizing Shareholder Value
• Founded in 1999 • Focused on the technology, marketing, media, eCommerce, and healthcare industries • Over 35 focused professionals › Unique combination of investment banking and consulting expertise • New York, Palo Alto, Las Vegas, Chicago, 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 • Together with strategic consulting firm Winterberry Group, one of the largest industry-specific advisors ppggroviding strategic and transactional services • International reach through our partnership with Altium. Founded more than 20 years ago and privately owned, Altium operates from ten offices across Europe • Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker-dealer
INVESTMENT BANKING STRATEGIC CONSULTING
• Sell-Side Representation • Technology • Strategic Development and Competitive Analysis • Capital Raising and Private • Media Placements • M&A Transaction Due Diligence Support • Marketing and Valuation Analysis • Corporate Divestitures • eCommerce • Acquisition Strategy/Target Identification • M&A Advisory • Healthcare • Publishing and Thought Leadership • Fairness Opinions
M&A & INVESTMENT SUMMARY MARCH 2013 54 Petsky Prunier was Ranked #1 by Bloomberg in 2011-2012 for Mid-Market Internet & Advertising Transactions*
Rank Advisor Deal Count
1 Petsky Prunier LLC 30 2 Nomura Holdings Inc 24 3 GCA Savvian Group Corp 23 4 Goldman Sachs & Co 20 5 Morgan Stanley 19 6 Jordan Edmiston Group 18 7 Jefferies Group Inc. 16 8 China Renaissance Partners 15 8 Sumitomo Mitsui Financial 15 10 JP Morgan 14 10 RBC Capital Markets 14
* Based on number of deals announced in 2011-2012 valued at $500 million or less
More than 50 transactions closed since 2010:
• Ranging from strategic sales and divestitures to private equity recaps to growth, mezzanine, and alternative financings
• Across a broad uni verse of iidndustri es, incl udi ng didiigital adverti si ng and mark eti ng, eCommerce and didiigital media, technology and software, information services, and healthcare
M&A & INVESTMENT SUMMARY MARCH 2013 55 International Partnership with Altium
About Altium International Network
• Altium provides M&A and corporate finance advisory services to companies, private equity firms, and entrepreneurs New York Palo Alto Las Vegas Chicago • European-based, mid-market financial Tampa advisory group, employee-owned and truly independent
• A leading adviser for more than 25 years and from start as the corporate finance arm of private equity investor Apax Partners, has developed into a group that operates across ten iitnternati ona l offices with cooperation partners in USA and China
• In the last five years, has completed +50 technology transactions in 12 different countries
Madrid ManchesterLeeds London Paris Zurich Frankfurt Milan Munich Dubai
M&A & INVESTMENT SUMMARY MARCH 2013 56 REPRESENTATIVE RECENT TRANSACTIONS
has sold a leading digital advertising the largest provider of cloud‐based SaaS a leading multiplatform travel and monetization and shopper marketing a leading provider of digital a ddynami c displ lay medi a an d has sold a real-time behavioral advertising tools for printing signs, labels and tags, lifestyle media company partner for e-commerce retailers a leading provider of in-store and production services to retargeting company along with digital subsidiary a portfolio company of shopper marketing signage to company and publishing digital displays for retailers has been sold to brands and agencies major North American retailers has been acquired by has been acquired by has been sold to has been sold to has been sold to provider of online travel guides for has been sold to top destinations around the world specializing in retail, digital, shopper marketing and consumer a unit of a subsidiary of to services to with financing from (NSYE: ACN) (NSYE: AOL) (JASDAQ:4755) (NYSE: LXK ) (NYSE: GCI )
a leading provider of has sold a leading digital direct marketing a leader in global healthcare transportation-based digital company utilizing a proprietary has sold its a leader in technology and global primary market research and the top independent media networks database to provide customer a provider of a cloud-based in-app advertising for Facebook, influence network mapping direct-to-consumer marketer of acquisition solutions for major brands integration platform for the digital has received a mezzanine debt Sports Marketing Print Apple (iOS), and Android a leader in multichannel retail, dental savings plans and marketing industry has been sold to investment from has received an equity investment from developers ecommerce and loyalty marketing Division has been sold to has received $15M financing led services a leading provider of services for to has received $66M investment by has been sold to domain name registration, from a portfolio company of acquisition, brokerage and sales with debt financing from to
has sold has sold has been sold to has sold (Nasdaq: TREE) a leading provider of taxi-based has sold has sold a leading advertising outdoor media has acquired A leading urban and technology company a global digital marketing agency multicultural agency has been sold to has been sold to a leading provider of integrated to a premier provider a leading market services a leading online lead a unit of data, technology and analytics of affinity programs for and BPO company generation business solutions universities and colleges a pioneer in measuring the to to a subsidiary of a leading data management and to impact of promotion on to audience optimization platform (NYSE: PAY) physician prescribing behavior (Xetra: DPW.DE) (DMP) company (NasdaqGS: LEDR) (NYSE: IPG)
(TSX: PTO) has merged with a portfolio company of one of North America’s largest a leading online video a digital communications agency has received a majority has been sold to Vestar Capital Partners mobile marketing and gateway advertising network with a proprietary software investment from has sold solution providers a provider of multichannel platform serving has received a growth capital marketing software services and has been sold to biopharmaceutical companies has been sold to investment from has been sold to to has been sold to a portfolio company of a portfolio company of (Nasdaq:GSIC) Parthenon Capital Partners KRG Capital Partners (d(Nasdaq: RRD )
New Digital Group
has sold a division of a leading performance-based (NASDAQ: TREE) a global marketing services has acquired certain assets of advertising network has sold the company assets of a premier provider of benchmark- has been acquired by a portfolio company of based advisory services to the has been sold to a leading online community for has been sold to pharmaceutical and biotech automotive enthusiasts industry and social networking an interactive direct marketing has acquired technology platform company specializing in to in a combination that creates ldlead generat ion for t hfhe for-profit, has been acquired by to has divested one of its the world’s leading loyalty post-secondary education market marketing services divisions management provider
M&A & INVESTMENT SUMMARY MARCH 2013 57