February 2013 M&A and Investment Summary
Expertise. Commitment. Results.
M&A & INVESTMENT SUMMARY FEBRUARY 2013 1 TABLE OF CONTENTS
Overview of Monthly M&A and Investment Activity 3 Monthly M&A and Investment Activity by Industry Segment 9 Additional Monthly M&A and Investment Activity Data 42 About Petsky Prunier 54
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M&A & INVESTMENT SUMMARY FEBRUARY 2013 2 M&A AND INVESTMENT SUMMARY FOR ALL SEGMENTS Transaction Distribution • A tot al of 298 dea ls were announced in FbFebruary 2013, of whihihch 179 reportdted $6 billion in val ue • Digital Media/Commerce was the most active segment with 64 transactions, of which 47 reported $914 million in value • Communications was the highest reported-value segment with 17 transactions, of which 13 announced $1.9 billion in value • Strategic buyers announced 135 deals (45 percent of total volume), of which 31 reported $3.2 billion in value • VC/Growth Capital investors announced 156 deals, of which 148 reported $2.2 billion in value • Buyout investors announced seven deals, of which two reported $571 million in value
FEBRUARY 2013 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Media/Commerce 64 21% 913.7 15% 21 91.0 0 - 43 822.7 Marketing Technology 57 19% 764.7 13% 21 517.0 1 - 35 247.7 Software 52 17% 473.2 8% 22 146.8 2 - 28 326.4 Technology 27 9% 428.8 7% 10 110.2 0 - 17 318.7 Digital Advertising 26 9% 249.4 4% 11 13.7 0 - 15 235.7 Information & Business Services 26 9% 834.9 14% 15 220.3 2 570.5 9 44.1 Communications 17 6% 1,903.1 32% 8 1,667.7 0 - 9 235.4 Traditional Media 16 5% 387.7 6% 15 387.7 1 - 0 - Agency 10 3% - 0% 9 - 1 - 0 - Marketing Services 3 1% 40.8 1% 3 40.8 0 - 0 - Total 298 100% 5,996.3 100% 135 3,195.1 7 570.5 156 2,230.7
M&A & INVESTMENT SUMMARY FEBRUARY 2013 3 M&A AND INVESTMENT SUMMARY FOR ALL SEGMENTS Transaction Distribution • The larges t con tro l transac tion was Orac le ’s $2 billion acqui siti on of Acme Pack et , whi ch provid es net work sol uti ons that enable the delivery of various communications services. The next-largest acquisitions included: › CVC Capital’s $320 million buyout of Spi Global, a Philippines and U.S.-based company offering voice and non- voice business process outsourcing and customer relationship management services › Electra Partners’ $251 million acquisition of Ireland-based UBM’s Data Services Business, which provides data and information products that professionals use to support their decision-making and day-to-day marketing and analytics activities • Kingdom Holding’s $400 million investment in Beijing Jingdong Century Trading, which operates eCommerce site 360buy.com, was the largest investment during the month. Additional sizable investments included: › The $200 million Valiant Cappgital Management-led investment in Pinterest, the social scrappgbooking site, at a $1.5 billion valuation
M&A and Investment Volume For All Segments - Last 13 Months ($BN) All transactions; Value based on reported values only 25.0 $22.4
20.0 $19.1 $15.9 7 $15.3 15.0 $12.8 $11.7 5 5 $9.9 $9.6 2 3 $$59.5 $9.8 10.0 3 $8.5 $7.1 2 2 $6.0* 2 3 1 5.0 2 1
332 377 381 377 376 402 401 342305 390 253 409 297 - Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13
Deals valued over $1BN
* Excludes Liberty Global’s $23.3 billion acquisition of Virgin Media and Comcast’s $19.7 billion acquisition of NBCUniversal News Group
M&A & INVESTMENT SUMMARY FEBRUARY 2013 4 SELECTED TRANSACTIONS WITH VALUATION INFORMATION DISCLOSED
($ in Millions)
Selected Transactions With Multiples Information
Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Advertising LivingSocial(1 ) Digital Promotion/Coupon (Unnamed Fund Contibuters) $1,466.7 $536.0 - 2.7x NM
Marketing Technology Angel.com Incorporated Teleservices/eServices Genesys International 110.0 85.0 - 1.3x NM Skyfire Labs, Inc . Mobile Tec hnology Opera Software ASA 50.0 4.1 - 12.2x NM Metaresolver Media Management System Millennial Media, Inc. 20.0 10.0 - 2.0x NM I-Design CRM Cardtronics, Inc. 12.0 5.0 0.4 2.4x 13.5x Technology Mu Sigma(2 ) Big Data MasterCard, Inc. 1,000.0 100.0 - 10.0x NM Online Resources Corporation Financial ACI Worldwide, Inc. 110.2 161.7 28.5 0.7x 5.7x
Communications Acme Packet, Inc VoIP Equipment & Software Oracle Corporation 1,645.6 274.4 8.6 6.0x 32.0x Gilat Satellite Networks(3 ) Satellite & Microwave Equipment Roumell Asset Management, LLC 227.7 345.0 30.0 0.7x 11.5x AWIND VoIP Equipment & Software Barco NV 7.1 7.9 - 0.9x NM
Software FFastFill IT Consulting/Systems Integration ION Trading 150.1 33.8 4.9 4.4x 6.9x CapitalStream Financial Linedata Services S.A. 45.0 30.0 - 1.5x NM
Information & Business Services SPi Global BPO CVC Capital Partners Ltd. 320.0 230.0 45.0 1.4x 5.1x UBM, Data Services business Marketing Data Electra Partners LLP 250.5 291.4 44.5 0.9x 6.5x Northgate Managed Services Managed Services Capita Group plc 100.8 229.9 16.2 (4 ) 0.4x 14.2x
IPOs After Final Pricing* Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Advertising Digital Globe Services, Ltd. Online Lead Generation IPO $75.7 $20.0 3.0 3.8x 25.2x Technology Xoom Corporation Financial IPO 470.0 80.0 (2.8) 5.9x NM
* IPO multiples based on TTM financials and pro forma balance sheets per latest Registration Filing (1) LivingSocial sold an eight percent stake to unnamed investors for $110 million (2) Mu Sigma sold a five percent stake to a group of investors led by MasterCard, for $45 million (3) Gilat Satellite Networks sold a five percent stake to Roumell Asset Management for $12 million (4) Northgate Managed Services EBITDA is represented by an EBIT proxy
M&A & INVESTMENT SUMMARY FEBRUARY 2013 5 SECURITIES IN REGISTRATION ($ in Millions)
Aggregate LTM DtDate Company Name StSegment Offer ing Va lue Rev EBITDA
Feb-13 Marin Software Incorporated Marketing Technology $75.0 $53.9 ($20.0)
Feb-13 Model N Inc. Software 75.0 88.5 (3.3)
Feb-13 Oisix Co., Ltd Digital Media/Commerce 9.0 NA NA
Feb-13 Quintiles Transnational Holdings Inc. Information & Business Services 600. 0 369233,692.3 486. 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
Jun-12 goldenTech SA Software 5.2 NA NA
Jun-12 Shanghai Amarsoft Information Technology Co. Ltd Software NA NA NA
Apr-12 BlackStratus, Inc. Softw are 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 Professional Diversity Network LLC Digital Media/Commerce 17.5 5.7 2.9
Mar-12 Reval Holdings, Inc. Software 75.0 47.0 (12.1)
M&A & INVESTMENT SUMMARY FEBRUARY 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 Feb 28, 2013 1st Trading Day Fb13Feb-13 AIM: DGS Dig ita l Glo be Serv ices, Ltd. UitdUnited SttStates No Range $2. 47 2592.59, up 5% $2. 51 (3. 1%) Feb-13 XOOM Xoom Corporation United States 13.00-15.00 16.00 25.49, up 59% 21.26 (16.6%)
Nov-12 3666 Tecnos Japan Incorporated Japan 16.77-18.72 18.72 27.66, up 48% 35.29 27.6% Nov-12 YY YY, Inc. China 10.50-12.50 10.50 11.31, up 8% 18.38 62.5%
Oct-12 RKUS Ruckus Wireless, Inc. United States 13.00-15.00 15.00 12.25, down 18% 21.36 74.4% Oct-12 FLTX Fleetmatics Group Limited United States 15.00-17.00 27.00 22.30, up 31% 23.75 6.5% Oct-12 RLGY Realogy Holdings Corp. United States 23.00-27.00 27.00 34.20, up 27% 44.85 31.1%
Oct-12 SSTK Shutterstock, Inc. United States 13.00-15.00 17.00 21.66, up 27% 32.60 50.5% Oct-12 WDAY Workday, Inc. United States 24.00-26.00 28.00 48.69, 74% 55.29 12.9%
Sep-12 TRLA Trulia, Inc. United States 14.00-16.00 17.00 24.00, up 41.8% 23.84 (0.7%) Aug-12 PFMT Performant Financial Corporation United States 12.00-14.00 9.00 10.60, down 18% 13.25 25.0% Jul-12 EOPN E2open, Inc. United States 15.00-17.00 15.00 13.50, down 10% 19.76 46.4% Jul-12 KYAK Kayak Software United States 22.00-25.00 26.00 33.18, up 28% 39.87 20.2% Jul-12 PANW Palo Alto Networks United States 38.00-40.00 42.00 53.13, up 27% 61.13 15.1%
Jun-12 NOW ServiceNow United States 15.00-17.00 18.00 24.77, up 38% 32.47 31.1% Jun-12 DB:VWA Vange Software Group AG Switzerland 33.05-39.41 33.05 32.69, down 1% 12.47 (61.9%) May-12 ADNC Audience, Inc. United States 14.00-16.00 17.00 19.10, up 12.4% 13.64 (28.6%)
May-12 FB Facebook United States 36.00-38.00 38.00 38.23, flat 27.25 (28.7%) May-12 WAGE WageWorks, Inc. United States 10.00-12.00 9.00 12.60, up 40% 23.61 87.4%
Apr-12 A149940 Modacom Co., Ltd. South Korea 6.24-7.58 6.24 6.76, up 8% 6.87 1.7% Apr-12 300353 Kyland Technology Co., Ltd. China No Range 3.29 3.49, up 6% 4.75 36.1% Apr-12 AQ Acquity Group Hong Kong 6.00-8.00 6.00 5.77, down 4% 5.94 2.9%
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% 21.09 (1.0%) Apr-12 PFPT Proofpoint, Inc. United States 10.00-12.00 13.00 14.10, up 8% 13.98 (0.9%) Apr-12 SPLK Splunk, Inc. United States 11.00-13.00 17.00 35.48, up 109% 36.13 1.8% Mar-12 MACK CafePress, Inc. United States 16.00-18.00 19.00 19.03, up 0.2% 6.40 (66.4%)
Mar-12 DWRE Demandware, Inc. United States 12.50-14.50 16.00 24.33, up 52% 26.45 8.7% Mar-12 ENVI Envivio, Inc. United States 10.00-12.00 9.00 8.49, down 5.7% 1.70 (80.0%)
Mar-12 ET ExactTarget, Inc. United States 15.00-17.00 19.00 25.11, up 32% 22.30 (()11.2%) Mar-12 MM Millennial Media, Inc. United States 11.00-13.00 13.00 25.00, up 92% 9.37 (62.5%) Mar-12 SYNC Synacor, Inc. United States 5.00-6.00 5.00 5.14, up 3% 3.29 (36.0%)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 7 LTM IPO PERFORMANCE
Initial Offering Final Price Stock Price at Close Stock Price on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Feb 28, 2013 1st Trading Day M12Mar-12 VIPS VIPs hop China 85010508.50-10.50 6506.50 5. 50, down 15% 25. 88 370. 5% Mar-12 VCRA Vocera Communications United States 12.00-14.00 16.00 22.40, up 40% 26.37 17.7%
Mar-12 YELP Yelp!, Inc. United States 12.00-14.00 15.00 24.58, up 64% 22.19 (9.7%) Mar-12 A153460 Nable Communications, Inc. South Korea 6.54-7.85 7.85 7.66, down 2% 14.67 91.6%
M&A & INVESTMENT SUMMARY FEBRUARY 2013 8 DIGITAL MEDIA/COMMERCE Transactions by Subsegment and Buyer Type
• eCommerce was the most active and highest reported-value subsegment with 23 transactions announced, of which 19 announced $560 million in value • Select acquisitions › Twitter’s $100 million acquisition of Bluefin Labs, a social TV analytics company providing solutions to brand advertisers, advertising agencies, and TV networks › SFX Entertainment’s $50 million acquisition of Beatport, which offers a DJ and electronic music download store and community › JD Sports Fashion’s acquisition of UK-based Cloggs, an online retailer of branded footwear • Select investments › The $25 million investment in Russia-based mobile gaming network Game Insight, from Russia-based venture investment company IMI.VC , at a valuation of approximately $550 million › The $22 million investment in Nextdoor, which operates a website where users can create private social networks with others who live in their local neighborhoods, led by Greylock Partners, at a $200 million valuations
DIGITAL MEDIA/COMMERCE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM eCommerce 23 36% 559.4 61% 7 76.0 0 - 16 483.4 Mobile Content/Apps 15 23% 69.5 8% 5 15.0 0 - 10 54.5 Social Media/Apps 15 23% 275.0 30% 5 - 0 - 10 275.0 Gaming 5 8% 6.0 1% 2 - 0 - 3 6.0 Niche Content 4 6% 2.7 0% 2 - 0 - 2 2.7 Classifieds/Auctions/P-to-P 1 2% 1.1 0% 0 - 0 - 1 1.1 Web Search/Portals 1 - 0.0 0% 0 0.0 0 0.0 1 0.0 Total 64 98% 913.7 100% 21 91.0 0 0.0 43 822.7
M&A & INVESTMENT SUMMARY FEBRUARY 2013 9 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AOL Inc. United States 36.90 -16% 2,826.5 2,478.9 466.6 105.9 2,191.7 426.0 19.4% -0.5% 1.1x 5.8x Baidu, Inc . China 90.76 -41% 31,734.9 28,625.2 5,211.5 1,915.7 3,578.5 1,992.0 55.7% 53.8% 8.0x 14.4x Google Inc . United States 801.20 -1% 264,126.2 223,248.2 48,088.0 7,210.0 50,175.0 16,278.0 32.4% 32.4% 4.4x 13.7x Yahoo! Inc. United States 21.31 -1% 25,197.2 21,183.2 4,184.0 124.6 4,986.6 1,457.1 29.2% 0.0% 4.2x 14.5x Yandex N.V. * Netherlands 23.19 -45% 7,600.8 7,203.6 397.2 - 941.9 406.2 43.1% 43.6% 7.6x 17.7x
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 (10.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (17.7x)
eCommerce Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 1-800-Flowers.com Inc. United States 4.30 -2% 278.4 273.2 27.0 21.8 733.1 40.8 5.6% 5.0% 0.4x 6.7x Amazon.com Inc. * United States 264.27 -7% 120,124.2 113,061.2 11,448.0 4,385.0 61,093.0 2,508.0 4.1% 27.1% 1.9x 45.1x Blue Nile Inc . United States 33.93 -22% 422.9 336.6 87.0 0.7 400.0 13.7 3.4% 14.9% 0.8x 24.6x Bluefly Inc . United States 0.79 -58% 22.6 23.5 1.3 2.3 97.6 (23.2) NM 2.2% 0.2x NM CafePress Inc. United States 6.95 -69% 118.9 82.0 40.6 3.7 217.8 13.4 6.2% 24.1% 0.4x 6.1x eBay Inc. United States 54.71 -4% 70,932.2 66,043.2 9,408.0 4,519.0 14,072.0 4,119.0 29.3% 20.8% 4.7x 16.0x E-Commerce China Dangdang Inc. China 3.86 -66% 309.4 113.8 227.5 31.8 765.1 (72.9) NM 55.3% 0.1x NM Ediets.com Inc. United States 0.55 -14% 7.9 9.5 0.2 1.9 21.4 (4.1) NM - 8.4% 0.4x NM Expedia Inc. United States 63.90 -6% 8,651.3 8,071.6 1,938.1 1,249.3 4,030.3 642.7 15.9% 16.9% 2.0x 12.6x Hollywood Media Corp. United States 1.32 -12% 30.6 24.7 6.0 0.0 3.4 (4.4) NM 80.9% 7.3x NM HSN, Inc . United States 53.50 -12% 2,946.9 2,975.6 222.1 250.8 3,266.7 284.0 8.7% 6.4% 0.9x 10.5x Jiayuan.com International Ltd. China 5.71 -65% 180.8 99.6 81.1 - 65.9 9.9 15.0% 24.0% 1.5x 10.1x Liquidity Servic es, Inc . United States 34.05 -49% 1,074.4 1,028.5 45.9 - 491.5 97.7 19.9% 37.3% 2.1x 10.5x Merc adolibre, Inc . * Argentina 85.61 -17% 3,779.8 3,588.7 195.2 0.1 373.6 138.6 37.1% 25.0% 9.6x 25.9x NtfliNetflix, Inc. * UitdUnited SttStates 188. 08 -5% 10, 531. 3 10, 215. 0 748. 1 431. 8 3, 609. 3 95. 5 26%2.6% 126%2.6% 282.8x10007.0x OpenTable, Inc. United States 55.60 -5% 1,276.4 1,172.8 103.5 - 161.6 49.4 30.6% 15.9% 7.3x 23.7x Orbitz Worldwide, Inc. United States 4.26 -10% 447.5 757.3 130.3 440.0 778.8 111.0 14.3% 1.6% 1.0x 6.8x Overstock.com Inc. United States 11.62 -34% 274.8 181.2 93.5 - 1,099.3 28.2 2.6% 4.3% 0.2x 6.4x PC Home Online Inc. Taiwan 4.99 -22% 407.9 326.5 95.1 - 503.4 18.0 3.6% 12.3% 0.6x 18.1x pric eline.c om Inc orporated United States 689.11 -11% 34,366.8 30,800.9 5,183.2 1,457.0 5,261.0 1,894.9 36.0% 20.8% 5.9x 16.3x Rakut en, Inc . Japan 8.67 -11% 11,401.2 7,046.0 8,258.8 3,538.2 5,127.2 1,172.0 22.9% 16.7% 1.4x 6.0x Shutterfly, Inc. United States 43.28 -2% 1,572.4 1,327.3 245.1 - 640.6 82.5 12.9% 35.4% 2.1x 16.1x Shutterstock, Inc. United States 32.60 -9% 1,092.5 996.4 102.1 6.0 169.6 24.4 14.4% 41.0% 5.9x 40.9x Stamps.com Inc. United States 24.39 -25% 380.6 334.0 46.6 - 115.7 26.1 22.5% 13.9% 2.9x 12.8x ValueVision Media Inc . United States 2622.62 -17% 128. 6 136. 1 30. 5 38. 0 556. 9 (6. 1) NM -56%5.6% 02x0.2x NM Vipshop Holdings Limited China 25.88 -9% 1,310.6 1,100.8 210.6 0.8 692.1 (7.4) NM 204.7% 1.6x NM
Adjusted Weighted Average 3.2x 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 (44.1x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 10 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Bet fair Group PLC United Kingdom 10.57 -22% 1,065.0 886.5 189.9 - 642.9 102.7 16.0% 7.5% 1.4x 8.6x CyberAgent Inc. Japan 1,869.76 -32% 1,211.0 366.8 934.6 1.8 1,731.8 210.0 12.1% 21.8% 0.2x 1.7x Demand Media, Inc . United States 8.10 -35% 697.7 594.8 102.9 - 380.6 69.0 18.1% 17.1% 1.6x 8.6x DeNA Co., Lt d. Japan 28.15 -23% 3,776.4 3,284.3 573.3 - 2,225.0 959.5 43.1% 42.1% 1.5x 3.4x Facebook, Inc. * United States 27.25 -39% 64,913.2 57,643.2 9,626.0 2,356.0 5,089.0 1,187.0 23.3% 37.1% 11.3x 48.6x G5 Entertainment AB (publ) Sweden 8.03 -4% 70.7 67.7 2.9 - 11.5 4.2 36.7% 92.4% 5.9x 16.0x GameLoft SA France 6.74 -10% 535.9 478.7 55.8 0.5 241.8 29.4 12.2% 21.1% 2.0x 16.3x Glu Mobile, Inc . United States 2.26 -62% 149.0 126.7 22.3 - 87.5 (8.6) NM 32.2% 1.4x NM Gree, Inc. Japan 12.21 -55% 2,850.2 2,651.7 496.4 282.5 1,891.6 891.4 47.1% 49.5% 1.4x 3.0x IAC/InterAc tiveCorp United States 40.75 -27% 3,435.2 3,370.5 770.6 595.8 2,800.9 411.8 14.7% 36.0% 1.2x 8.2x International Game Tec hnology United States 15.94 -8% 4,214.5 5,789.3 247.1 2,236.9 2,235.5 818.3 36.6% 14.6% 2.6x 7.1x Kongzhong Corp. China 6.17 -25% 264.3 126.1 138.2 - 180.6 30.8 17.0% 15.6% 0.7x 4.1x LinkedIn Corporation * United States 168.18 -2% 18,340.6 17,591.1 749.5 - 972.3 125.5 12.9% 86.2% 18.1x 140.2x MeetMe, Inc. United States 2.57 -46% 95.1 101.4 5.5 11.8 42.1 (4.0) NM 533.4% 2.4x NM Mixi, Inc. Japan 1,821.04 -29% 282.5 146.5 145.2 - 158.7 48.9 30.8% -1.7% 0.9x 3.0x NCsoft Corporation South Korea 131.55 -56% 2,613.4 2,126.9 527.5 11.4 708.5 165.3 23.3% 23.8% 3.0x 12.9x Nexon Co. Lt d. Japan 9.11 -50% 3,965.7 3,190.4 1,476.5 607.3 1,253.8 698.9 55.7% 23.8% 2.5x 4.6x Pac ific On line Ltd. China 0440.44 -14% 475. 6 437. 3 38. 3 - 106. 5 46. 7 43. 9% 19. 3% 414.1x 949.4x Pandora Media, Inc. United States 12.20 -53% 2,074.9 1,994.4 80.5 - 383.4 (24.7) NM 59.3% 5.2x NM Perform Group plc. United Kingdom 6.30 -7% 1,505.8 1,471.5 54.1 15.3 196.8 35.4 18.0% 53.4% 7.5x 41.6x Phoenix New Media Limited China 3.81 -51% 296.9 119.2 177.7 - 173.2 17.1 9.9% 31.5% 0.7x 7.0x Rediff.c om India Limit ed India 2.70 -63% 74.5 49.9 - - 16.1 (7.6) NM -23.0% 3.1x NM Renren Inc . China 2.96 -62% 1,113.7 221.3 892.5 - 160.1 (70.4) NM 50.9% 1.4x NM S ky - mo bi Limit e d * China 2.28 -47% 73.6 (23.1) 97.0 - 99.3 1.5 1.5% -9.5% NM NM Spark Networks, Inc . United States 7.22 -13% 150.0 139.0 11.0 - 58.3 (4.4) NM 27.5% 2.4x NM Taomee Holdings Ltd. China 4.05 -36% 148.8 29.6 119.3 - 41.3 5.1 12.4% -11.1% 0.7x 5.8x The Active Network, Inc. * United States 4.69 -74% 285.9 232.6 58.5 5.2 418.9 4.3 1.0% 24.2% 0.6x 54.2x TheStreet, Inc. United States 1851.85 -20% 61. 6 19. 6 41. 9 - 50. 7 (1. 2) NM -12. 2% 04x0.4x NM United Online, Inc . United States 5.90 -12% 537.4 645.0 136.4 244.0 870.9 115.6 13.3% -3.0% 0.7x 5.6x WebMD Health Corp. United States 22.10 -15% 1,083.4 891.6 991.8 800.0 469.9 28.2 6.0% -15.9% 1.9x 31.6x WebMediaBrands Inc United States 1.75 -82% 10.5 16.0 2.2 7.6 14.0 (1.7) NM 12.3% 1.1x NM YY Inc. * China 18.38 -7% 977.7 854.1 123.6 - 105.9 14.0 13.3% 0.0% 8.1x 60.8x Zynga, Inc. United States 3.38 -77% 2,655.0 1,470.2 1,284.8 100.0 1,281.3 57.0 4.5% 12.4% 1.1x 25.8x
Adjusted Weighted Average 2.4x 36.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (52.7x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 11 DIGITAL ADVERTISING Transactions by Subsegment and Buyer Type
• The were 26 transactions announced in the Digital Advertising segment, of which 15 reported $250 million in value • Select acquisitions › Alphabird’s acquisition of Australia-based digital marketer Volt Media, which operates a video network for in- stream advertising › Tatango’s acquisition of Broadtexter, which offers a text messaging marketing platform • Select investments › The $53 million investment in Consumer United, an online consumer services organization using group buying power to negotiate better deals on services such as auto insurance, home insurance, home security, and utilities, from Spark Capital and Thayer Street Partners › The $14 million investment in Verve Mobile, a mobile advertising platform for national and local media, from Nokia Growth Partners, Qualcomm Ventures, and return backer BlueRun Ventures
DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Local Search 6 23% 33.1 13% 2 - 0 - 4 33.1 Ad Networks/Exchanges 4 15% 16.0 6% 2 8.2 0 - 2 7.8 Digital Video 3 12% 2.3 1% 2 - 0 - 1 2.3 Mobile Marketing 3 12% 19.5 8% 2 5.5 0 - 1 14.0 Online Lead Generation 3 12% 4.5 2% 2 - 0 - 1 4.5 Comparison Shopping 2 8% 11.5 5% 0 - 0 - 2 11.5 Vertical Search 2 8% - 0% 1 - 0 - 1 - Affiliate/CPA Network 1 4% 52.5 21% 0 - 0 - 1 52.5 Digital Promotion/Coupon 1 4% 110.0 44% 0 - 0 - 1 110.0 Search Marketing 1 4% - 0% 0 - 0 - 1 - Total 26 100% 249.4 100% 11 13.7 0 0.0 15 235.7
M&A & INVESTMENT SUMMARY FEBRUARY 2013 12 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION
($ 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Blinkx plc * United States 1.39 -3% 502.8 463.6 41.6 - 151.8 16.5 10.9% 82.2% 3.1x 28.1x Bluc ora, Inc . United States 15.50 -17% 632.9 544.5 162.3 73.9 406.9 72.4 17.8% 77.8% 1.3x 7.5x Constant Contact, Inc. United States 14.13 -54% 431.6 338.1 93.5 - 252.2 23.2 9.2% 17.6% 1.3x 14.6x Demand Media, Inc . United States 8.10 -35% 697.7 594.8 102.9 - 380.6 69.0 18.1% 17.1% 1.6x 8.6x Digital Globe Servic es, LLC * United States 2.51 0% 74.5 76.3 0.9 2.9 22.8 3.6 15.8% 0.0% 3.3x 21.1x ExactTarget, Inc. United States 22.30 -25% 1,531.4 1,423.2 109.4 1.2 292.3 4.1 1.4% 40.9% 4.9x NM Google Inc . United States 801.20 -1% 264,126.2 223,248.2 48,088.0 7,210.0 50,175.0 16,278.0 32.4% 32.4% 4.4x 13.7x Hi- Me dia S. A. Franc e 2532.53 -46% 112. 0 134. 5 30. 5 51. 3 270. 3 23. 2 86%8.6% -77%7.7% 050.5x 585.8x Millennial Media Inc. United States 9.37 -66% 742.7 605.3 137.4 - 177.7 (1.8) NM 71.4% 3.4x NM Motric ity, Inc . United States 0.40 -72% 18.5 21.4 19.0 22.0 90.9 7.2 7.9% 3.7% 0.2x 3.0x Opera Software ASA Norway 6.29 -21% 750.4 694.7 57.2 - 216.0 60.0 27.8% 34.0% 3.2x 11.6x OPT, Inc. Japan 10.32 -2% 303.7 163.0 171.1 6.0 912.3 26.6 2.9% 26.7% 0.2x 6.1x Pacific Online Ltd. China 0.44 -14% 475.6 437.3 38.3 - 106.5 46.7 43.9% 19.3% 4.1x 9.4x ReachLocal, Inc. United States 12.53 -12% 357.4 261.9 95.5 - 455.4 16.3 3.6% 21.3% 0.6x 16.1x Responsys, Inc. United States 8.07 -38% 393.7 288.2 106.7 1.1 162.8 19.9 12.2% 20.7% 1.8x 14.5x Rovi Corporat ion United States 17.80 -50% 1,793.0 2,413.7 863.3 1,484.0 650.6 235.8 36.2% -4.5% 3.7x 10.2x Septeni Holdings Co., Ltd. Japan 1,109.73 0% 139.7 105.4 55.7 10.8 491.8 20.3 4.1% 19.8% 0.2x 5.2x The Active Network, Inc. United States 4694.69 -74% 285. 9 232. 6 58. 5 5. 2 418. 9 21. 7 52%5.2% 24. 2% 06x0.6x 10. 7x TiVo Inc. United States 12.38 -8% 1,555.2 1,100.5 627.2 172.5 303.9 (69.4) NM 27.6% 3.6x NM TradeDoubler AB * Sweden 2.56 -53% 109.3 83.8 25.3 - 354.4 3.1 0.9% -11.7% 0.2x 26.8x ValueClic k, Inc . United States 26.67 -3% 2,019.5 2,025.4 136.6 142.5 660.9 202.3 30.6% 18.0% 3.1x 10.0x Velti Plc Ireland 3.68 -75% 239.2 225.2 29.5 15.5 260.0 30.3 11.6% 62.9% 0.9x 7.4x Vocus Inc. United States 14.04 -32% 290.7 337.0 32.8 1.6 170.8 (6.1) NM 48.7% 2.0x NM Web.com Group, Inc. * United States 17.08 -13% 805.0 1,482.6 15.2 692.8 407.6 56.9 13.9% 104.6% 3.6x 26.1x Yahoo! Inc. United States 21.31 -4% 25,197.2 21,183.2 4,184.0 124.6 4,986.6 1,457.1 29.2% 0.0% 4.2x 14.5x Youku Tudou Inc. * China 20.39 -38% 3,334.2 2,739.8 599.3 4.9 233.7 3.5 1.5% 98.3% 11.7x NM
Adjusted Weighted Average 4.4x 13.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (20.2x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 13 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Angie's List, Inc. United States 17.06 -14% 986.3 948.1 53.1 14.9 155.8 (48.3) NM 73.0% 6.1x NM Autobytel Inc. United States 4.56 -11% 40.4 30.1 15.3 5.0 66.8 3.5 5.2% 4.7% 0.5x 8.6x Bankrat e, Inc . United States 11.25 -56% 1,125.5 1,235.9 83.6 193.9 457.2 112.4 24.6% 7.8% 2.7x 11.0x Ctrip.c om International Ltd. China 19.29 -31% 2,678.0 2,171.0 774.9 252.7 667.2 119.0 17.8% 18.9% 3.3x 18.2x Dic e Holdings, Inc . United States 9.64 -12% 564.8 568.6 42.2 46.0 195.4 71.3 36.5% 9.1% 2.9x 8.0x eHealth, Inc. United States 15.53 -45% 314.5 173.7 140.8 - 155.5 20.6 13.3% 2.5% 1.1x 8.4x Groupon, Inc . United States 4.53 -76% 2,982.8 1,771.6 1,209.3 - 2,334.5 155.4 6.7% 45.0% 0.8x 11.4x HAHomeAway, Inc. UitdUnited SttStates 29. 50 -3% 2, 468. 2 2, 198. 4 269. 8 - 280. 4 53. 3 19. 0% 21. 8% 787.8x 41. 3x Kayak Soft ware Corporat ion United States 39.87 -3% 1,537.4 1,359.6 178.4 - 282.8 54.0 19.1% 32.8% 4.8x 25.2x LeGuide.com S.A. France 35.00 -4% 123.1 97.3 27.5 2.5 44.0 10.7 24.3% 23.0% 2.2x 9.1x MakeMyTrip Limited India 13.49 -44% 501.3 428.4 74.4 0.8 220.6 (6.5) NM 21.9% 1.9x NM Monster Worldwide, Inc. United States 5.12 -51% 569.0 585.0 148.2 164.2 890.4 142.5 16.0% -10.4% 0.7x 4.1x Move, Inc. United States 9.76 -4% 386.5 359.4 27.1 - 199.2 16.2 8.1% 3.9% 1.8x 22.2x QuinStreet, Inc. United States 5.73 -52% 245.2 237.1 107.8 99.7 329.1 42.7 13.0% -16.4% 0.7x 5.6x Rightmove plc * United Kingdom 26.14 -2% 2,580.8 2,558.6 23.0 - 169.3 115.3 68.1% 20.9% 15.1x 22.2x Tree.Com, Inc. United States 17.43 -6% 198.1 108.3 89.8 - 64.2 (9.5) NM 14.9% 1.7x NM TripAdvisor Inc. United States 45.54 -8% 6,507.4 6,433.0 486.5 412.1 763.0 309.6 40.6% 19.8% 8.4x 20.8x Trulia, Inc. United States 23. 84 -38% 651. 8 561. 8 100. 0 10. 0 68. 1 (5. 9) NM 76. 8% 83x8.3x NM Yelp, Inc. United States 22.19 -31% 1,413.8 1,318.7 95.1 - 137.6 (10.3) NM 65.2% 9.6x NM Zillow, Inc . * United States 42.96 -10% 1,458.1 1,264.0 194.1 - 116.9 12.4 10.6% 76.9% 10.8x 102.2x
Adjusted Weighted Average 5.7x 20.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (12.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (45.7x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 14 MARKETING TECHNOLOGY Transactions by Subsegment and Buyer Type
• Analytics/Reporting was the most active and highest reported-value subsegment with 12 transactions announced, of which 11 reported $164 million in value • Select acquisitions › Google’s $125 million acquisition of Channel Intelligence, a provider of on-demand data solutions that help online consumers find and buy products on retailer sites, manufacturer sites, or destination shopping sites › Genesys International’s $110 million acquisition of Angel.com, a provider of cloud-based customer experience management applications › Facebook’s $100 million acquisition of Atlas Advertiser Suite, an online advertising campaign management and measurement tool for marketers and agencies, from Microsoft • Select investments › The $27 million investment in DataXu, an ad technology company offering a real-time decision-support system that matches advertisers, publishers, and Web users, led by Thomvest Ventures
MARKETING TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM % # $MM # $MM # $MM Analytics & Reporting 12 21% 164.3 21% 2 100.0 0 - 10 64.3 Content Management 9 16% 8.4 1% 4 - 0 - 5 8.4 MRM/Workflow Management 6 11% 102.3 13% 3 100.0 1 - 2 2.3 Social Technology 6 11% 62.3 8% 1 - 0 - 5 62.3 Commerce Management 4 7% 129.4 17% 1 125.0 0 - 3 4.4 CRM 3 5% 15. 0 2% 2 12. 0 0 - 1 303.0 Online Targeting/Optimization 3 5% 46.0 6% 0 - 0 - 3 46.0 Teleservices/eServices 3 5% 110.0 14% 2 110.0 0 - 1 - BI Tools 2 4% - 0% 2 - 0 - 0 - Media Management System 2 4% 20.0 3% 2 20.0 0 - 0 - Mobile Technology 2 4% 75.0 10% 1 50.0 0 - 1 25.0 Other* 5 9% 32. 0 4% 1 - 0 - 4 32. 0 Total 57 100% 764.7 100% 21 517.0 1 0.0 35 247.7
*Other includes Ad Serving, Product/Price Software, Search & Discovery, SFA/Lead Management, Web to Print
M&A & INVESTMENT SUMMARY FEBRUARY 2013 15 MARKETING TECHNOLOGY PUBLIC COMPANY VALUATION
($ 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adobe Systems Inc. United States 39.31 -2% 19,607.5 17,577.3 3,538.4 1,508.2 4,403.7 1,477.0 33.5% 4.4% 4.0x 11.9x Bazaarvoice, Inc. United States 7.00 -67% 500.2 394.7 105.5 - 148.4 (35.9) NM 57.9% 2.7x NM Blackbaud Inc. United States 27.80 -18% 1,255.9 1,457.9 13.5 215.5 447.4 52.1 11.6% 20.6% 3.3x 28.0x Constant Contact, Inc. United States 14.13 -54% 431.6 338.1 93.5 - 252.2 23.2 9.2% 17.6% 1.3x 14.6x Dealertrack Technologies, Inc. United States 29.49 -12% 1,269.7 1,254.3 177.8 162.5 388.9 53.5 13.8% 10.1% 3.2x 23.4x Demandware, Inc . United States 26.45 -23% 786.0 684.3 107.1 5.4 79.5 (3.7) NM 40.5% 8.6x NM Digital Generation, Inc. United States 7.75 -41% 214.4 583.5 84.8 453.9 386.6 108.2 28.0% 19.2% 1.5x 5.4x DiDigit ita l River Inc. UitdUnited SttStates 14. 25 -25% 503. 7 108. 0 705. 6 309. 9 386. 2 37. 5 97%9.7% -30%3.0% 030.3x 292.9x eBay Inc. United States 54.71 -4% 70,932.2 66,043.2 9,408.0 4,519.0 14,072.0 4,119.0 29.3% 20.8% 4.7x 16.0x ExactTarget, Inc. United States 22.30 -25% 1,531.4 1,423.2 109.4 1.2 292.3 4.1 1.4% 40.9% 4.9x NM Jive Software, Inc. United States 16.61 -41% 1,093.0 958.4 145.4 10.8 113.7 (36.6) NM 47.1% 8.4x NM LivePerson Inc. United States 14.47 -26% 808.4 705.1 103.3 - 157.4 17.6 11.2% 18.3% 4.5x 40.0x Market Leader, Inc. United States 7.44 -13% 198.2 176.0 22.2 - 45.0 (1.5) NM 32.2% 3.9x NM Responsys, Inc. United States 8.07 -38% 393.7 288.2 106.7 1.1 162.8 19.9 12.2% 20.7% 1.8x 14.5x salesforce.com, inc * United States 169.22 -8% 24,781.8 24,562.1 867.6 647.9 3,050.2 106.1 3.5% 34.6% 8.1x 231.5x Teradata Corporation United States 58.06 -28% 9,626.3 9,171.3 729.0 274.0 2,665.0 736.0 27.6% 12.8% 3.4x 12.5x The Active Network, Inc. United States 4.69 -74% 285.9 232.6 58.5 5.2 418.9 21.7 5.2% 24.2% 0.6x 10.7x Vocus Inc. United States 14. 04 -32% 290. 7 337. 0 32. 8 1. 6 170. 8 (6. 1) NM 48. 7% 20x2.0x NM
Adjusted Weighted Average 5.1x 15.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (117.1x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 16 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Actuate Corporation United States 6.00 -18% 293.8 228.2 66.5 0.8 138.8 23.5 17.0% 2.9% 1.6x 9.7x Bit aut o Holdings Limit ed China 8.55 -16% 352.1 271.6 80.5 - 147.9 20.2 13.6% 54.7% 1.8x 13.5x Brightcove, Inc. United States 6.30 -75% 175.3 147.1 30.0 - 88.0 (8.9) NM 38.4% 1.7x NM E2open, Inc. * United States 19.76 -4% 495.3 462.9 33.5 1.1 74.4 4.4 5.9% 22.2% 6.2x 105.3x Informatica Corporation United States 35.01 -36% 3,775.5 3,242.3 535.6 - 811.6 180.3 22.2% 3.5% 4.0x 18.0x Infosystems S.A. Poland 1.27 -28% 5.2 4.9 0.6 0.3 2.1 0.8 38.8% 40.7% 2.4x 6.1x Interac tive Intelligenc e Group Inc . * United States 41.61 -2% 804.3 735.4 68.9 - 237.4 10.8 4.6% 13.3% 3.1x 67.9x ItInterna tiona l BiBusiness Mac hines Corpora tion UitdUnited SttStates 200. 83 -5% 223, 827. 0 246, 044. 0 11, 176. 0 33, 269. 0 104, 507. 0 26, 858. 0 25. 7% -23%2.3% 242.4x 929.2x Keynote Systems, Inc. United States 15.28 -25% 279.2 227.9 51.2 - 125.2 16.4 13.1% 12.5% 1.8x 13.9x Merc adolibre, Inc . Argentina 85.61 -17% 3,779.8 3,588.7 195.2 0.1 373.6 138.6 37.1% 25.0% 9.6x 25.9x MicroStrategy Inc. United States 101.88 -36% 1,150.0 925.6 224.4 - 594.6 49.9 8.4% 5.8% 1.6x 18.6x NetSuite Inc. * United States 69.79 -8% 5,112.3 4,926.5 185.9 - 308.8 (16.7) NM 30.7% 16.0x NM Nuance Communications, Inc. United States 18.41 -32% 5,821.0 7,199.6 961.1 2,335.0 1,753.1 379.4 21.6% 27.4% 4.1x 19.0x OpenText Corporation Canada 54.96 -12% 3,219.1 3,433.2 367.3 581.4 1,276.3 372.0 29.1% 10.2% 2.7x 9.2x Opera Software ASA Norway 6.29 -21% 750.4 694.7 57.2 - 216.0 60.0 27.8% 34.0% 3.2x 11.6x Oracle Corporation United States 34.24 -6% 162,102.3 148,591.3 33,695.0 19,757.0 37,230.0 17,300.0 46.5% 1.4% 4.0x 8.6x PTC Inc. United States 23.14 -20% 2,764.8 2,884.5 248.4 368.1 1,257.2 225.0 17.9% 3.2% 2.3x 12.8x Qlik Technologies, Inc . * United States 26. 00 -23% 2, 246. 5 2, 050. 7 195. 8 - 388. 5 19. 9 51%5.1% 21. 2% 53x5.3x 103. 1x RealNet works Inc . * United States 7.27 -32% 256.2 (15.2) 271.4 - 258.8 (25.3) NM -22.9% NM 0.6x Sage Group plc United Kingdom 5.16 -1% 6,133.0 6,353.8 99.3 337.3 2,160.7 639.4 29.6% 0.5% 2.9x 9.9x SAP AG Germany 78.59 -3% 93,718.3 97,154.3 3,466.3 6,918.1 21,388.4 6,506.7 30.4% 14.0% 4.5x 14.9x S ky - mo bi Limit e d * China 2.28 -47% 73.6 (23.1) 97.0 - 99.3 1.5 1.5% -9.5% NM NM Synchronoss Technologies, Inc. United States 30.17 -12% 1,140.7 1,094.0 56.2 9.5 273.7 60.6 22.2% 19.5% 4.0x 18.0x TIBCO Software Inc. United States 21.45 -38% 3,444.2 3,243.8 761.7 560.2 1,024.6 214.3 20.9% 11.3% 3.2x 15.1x Verint Systems Inc. United States 34.17 -3% 2,343.2 3,035.9 192.0 592.6 822.6 147.1 17.9% 8.6% 3.7x 20.6x
Adjusted Weighted Average 3.4x 10.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (53.1x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 17 AGENCY Transactions by Subsegment and Buyer Type
• There were 10 transactions announced in the Agency segment in February, of which three were announced in the Digital Agency subsegment • Select acquisitions › Weber Shandwick Worldwide’s acquisition of India-based public relations agency Corporate Voice / Weber Shandwick, and SocialLink, a digital and social media communications agency. Weber Shandwick Worldwide is a sub sidi ary o f Int erpubli c Group o f Compani es › Post+Beam’s acquisition of Kip Solutions, a social media, cause marketing company that helps social impact companies disseminate their message using social media and the Web
AGENCY/CONSULTING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Agency 3 30% - 0% 3 - 0 - 0 - Experiential Marketing 2 20% - 0% 1 - 1 - 0 - Public Relations 2 20% - 0% 2 - 0 - 0 - Social Agency 2 20% - 0% 2 - 0 - 0 - Design Agency 1 10% - 0% 1 - 0 - 0 - Total 10 100% 0.0 0% 9 0.0 1 0.0 0 0.0
M&A & INVESTMENT SUMMARY FEBRUARY 2013 18 AGENCY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acquity Group Limited Hong Kong $5.94 -46% $139.7 $109.0 $137.9 $27.2 19.7% 0.0% 0.8x 4.0x Aegis Group plc * United Kingdom 3.62 1% 4,160.5 4,634.3 1,902.1 330.8 17.4% 18.9% 2.4x 14.0x Cello Group Plc United Kingdom 0.65 -8% 53.5 74.3 212.2 12.5 5.9% 8.1% 0.4x 6.0x Charm Communications Inc. China 4.84 -58% 188.5 79.3 198.7 17.7 8.9% -22.5% 0.4x 4.5x Chime Communications plc United Kingdom 3.71 -1% 298.2 266.8 563.5 42.7 7.6% 20.4% 0.5x 6.3x Creston plc United Kingdom 1.35 -7% 81.6 84.7 121.9 22.0 18.1% 4.6% 0.7x 3.8x Dent su Inc . Japan 31.22 -2% 7,779.5 7,711.6 22,520.5 845.3 3.8% 5.7% 0.3x 9.1x Enero Group Limited Australia 0.40 -58% 34.2 17.8 307.1 3.8 1.2% -17.8% 0.1x 4.7x Havas France 6.31 -3% 2,411.1 3,054.9 2,166.4 333.8 15.4% 7.2% 1.4x 9.2x Huntsworth plc United Kingdom 0.74 -12% 185.9 291.6 276.6 44.4 16.1% 1.0% 1.1x 6.6x M&C Saatchi plc United Kingdom 3.32 -5% 210.6 193.0 257.3 29.5 11.5% 18.2% 0.7x 6.5x MDC Partners Inc. * Canada 13.76 0% 428.6 959.1 1,070.7 60.7 5.7% 13.5% 0.9x 15.8x Next Fifteen Communications Group plc United Kingdom 1.56 -5% 93.3 100.5 143.6 17.9 12.5% 6.4% 0.7x 5.6x Omnicom Group Inc. United States 57.53 -1% 15,038.7 17,489.0 14,219.4 2,086.9 14.7% 2.5% 1.2x 8.4x OPT, Inc. Japan 10.32 -2% 303.7 163.0 912.3 26.6 2.9% 26.7% 0.2x 6.1x Publicis Groupe SA France 66. 23 -1% 13, 909. 9 13, 699. 2 8, 715. 1 1, 677. 1 19. 2% 13. 7% 16x1.6x 82x8.2x Sapient Corp. United States 11.22 -12% 1,549.6 1,309.1 1,121.0 143.4 12.8% 9.8% 1.2x 9.1x The Interpublic Group of Companies, Inc. United States 12.78 -1% 5,289.8 5,633.2 6,956.2 826.0 11.9% -0.8% 0.8x 6.8x WPP plc Ireland 15.99 -1% 20,229.4 24,928.0 16,860.0 2,661.8 15.8% 3.5% 1.5x 9.4x
Adjusted Weighted Average 1.2x 8.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (10.7x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 19 MARKETING SERVICES Transactions by Subsegment and Buyer Type
• There were three transaction in the Marketing Services segment in February among the Database/Analytics, List Broker/Manager, and Printing Services subsegments • Select acquisitions › Stream Global Service’s $41 million acquisition of UK-based LBM Holdings, a provider of complete customer lifecycle solutions via its data, customer intelligence, multichannel contact, technology, and digital service › Take 5 Solutions’ acquisition of Specialists Marketing Services, a direct marketing company offering list management and brokerage, insert media advertising, direct data, and targeted and email marketing
MARKETING SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Database/Analytics 1 33% 40.8 100% 1 40.8 0 - 0 - List Broker/Manager 1 33% - 0% 1 - 0 - 0 - Printing Services 1 33% - 0% 1 - 0 - 0 - Total 3 100% 40.8 100% 3 40.8 0 0.0 0 0.0
M&A & INVESTMENT SUMMARY FEBRUARY 2013 20 MARKETING SERVICES PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $18.20 -4% $1,343.7 $1,418.8 $186.2 $261.6 $1,109.5 $223.4 20.1% -1.9% 1.3x 6.3x Aimia Inc. Canada 15.32 -5% 2,639.6 2,875.7 542.2 795.7 2,256.3 382.4 16.9% 6.3% 1.3x 7.5x Allianc e Data Systems Corporation * United States 158.69 -1% 7,914.5 12,721.3 893.4 5,700.2 3,641.4 1,141.2 31.3% 14.8% 3.5x 11.1x AMREP Corporation United States 8.69 -45% 52.1 62.8 15.1 25.7 81.4 1.6 2.0% -10.3% 0.8x 39.0x Cenveo Inc. United States 2.10 -60% 133.9 1,309.4 8.1 1,183.6 1,797.6 201.2 11.2% -5.8% 0.7x 6.5x Consolidated Graphics, Inc. United States 38.60 -21% 371.3 515.0 8.5 152.2 1,047.8 103.5 9.9% -0.5% 0.5x 5.0x Convergys Corporation United States 16.59 -5% 1,762.8 1,184.9 638.5 60.6 2,005.0 227.5 11.3% 3.7% 0.6x 5.2x CSG Systems International Inc . United States 19.41 -17% 615.2 720.6 169.3 274.7 756.9 162.8 21.5% 3.0% 1.0x 4.4x Dat a Group Inc Canada 1.69 -70% 39.7 139.0 - 103.5 344.4 28.0 8.1% 3.7% 0.4x 5.0x DST Syst ems Inc . United States 67.92 -2% 3,002.1 3,672.5 431.1 1,101.5 2,576.6 399.1 15.5% 7.9% 1.4x 9.2x Elanders AB Sweden 3.37 -14% 76.5 183.4 25.8 131.5 295.5 32.2 10.9% 4.6% 0.6x 5.7x Fair Isaac Corporation * United States 44.34 -7% 1,573.8 1,987.0 90.8 504.0 696.1 191.7 27.5% 9.8% 2.9x 10.4x Harte-Hanks Inc . United States 7.27 -26% 456.4 533.9 35.8 113.3 767.7 88.9 11.6% -9.8% 0.7x 6.0x High Co. SA France 6.28 -25% 65.6 34.9 49.5 19.4 170.2 15.3 9.0% -3.2% 0.2x 2.3x InnerWorkings Inc. United States 14.77 -3% 737.6 785.4 17.2 65.0 797.7 41.8 5.2% 25.9% 1.0x 18.8x Innotrac Corp. United States 3.08 -14% 40.5 41.7 1.7 2.8 98.4 6.1 6.2% 19.5% 0.4x 6.8x Insignia Systems Inc. United States 2.03 -13% 27.6 7.8 19.8 - 20.2 (1.2) NM 17.1% 0.4x NM Multiplus SA * Brazil 18.66 - 27% 3,022.6 2,430.2 575.8 - 710.5 118.4 16.7% 36.9% 3.4x 20.5x Points International Ltd. Canada 12.64 -3% 191.7 159.0 34.1 - 131.6 5.1 3.9% 12.5% 1.2x 31.2x Quad/Graphics, Inc. United States 21.75 -3% 1,026.9 2,357.1 18.6 1,348.2 4,179.1 578.2 13.8% -4.3% 0.6x 4.1x R.R. Donnelley & Sons Company United States 10.44 -24% 1,882.8 4,906.6 430.7 3,438.6 10,221.9 1,230.3 12.0% -3.7% 0.5x 4.0x StarTek, Inc. United States 5.02 -7% 76.1 66.9 9.2 - 198.1 6.3 3.2% -9.8% 0.3x 10.6x Sykes Enterprises, Incorporated United States 14.86 -10% 639.8 452.5 187.3 - 1,127.7 98.2 8.7% -3.6% 0.4x 4.6x Teleperformance France 41.26 0% 2,285.6 2,072.2 241.3 18.3 3,107.8 388.0 12.5% 10.9% 0.7x 5.3x TeleTec h Holdings Inc . United States 18.76 -2% 982.4 939.9 164.5 108.0 1,163.0 145.5 12.5% -1.4% 0.8x 6.5x Transcontinental Inc. Canada 12.19 -6% 954.1 1,507.4 16.8 487.3 2,110.7 360.2 17.1% 6.2% 0.7x 4.2x Valassis Communications Inc. United States 27.49 -12% 1,078.2 1,571.1 94.7 587.6 2,162.1 278.2 12.9% -3.3% 0.7x 5.6x Viad Corp United States 27. 46 -4% 556. 3 443. 3 124. 2 2. 3 1, 025. 2 63. 9 62%6.2% 88%8.8% 04x0.4x 69x6.9x SoundBite Communications, Inc. * United States 2.95 -6% 48.7 33.7 15.0 - 48.1 0.3 0.6% 15.4% 0.7x 120.6x CSG Systems International Inc . United States 19.41 -17% 615.2 720.6 169.3 274.7 756.9 162.8 21.5% 3.0% 1.0x 4.4x Vistaprint N.V. Netherlands 35.00 -19% 1,174.1 1,339.9 64.7 230.5 1,107.8 106.1 9.6% 19.8% 1.2x 12.6x
Adjusted Weighted Average 0.9x 9.3x
*Calc ulation is market c ap weighted and exc ludes revenue multiples that are 2.0 standard deviations above the mean (2.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (34.9x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 21 TRADITIONAL MEDIA Transactions by Subsegment and Buyer Type
• There were 16 transactions announced in the Tradition Media segment, worth $388 million in reported value • Select acquisitions › Regal Entertainment Group’s $238 million acquisition of Hollywood America Cinemas, a motion picture exhibitor and theater operator › Sinclair Broadcasting Group’s $95 million acquisition of various TV stations in four separate markets as part of its broadcast portfolio realignment, from Cox Media Group › I-5 Publishing’s $10 million acquisition of the books, magazines, and websites of special interest publisher BowTie
TRADITIONAL MEDIA TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM B-to-B Media 4 25% - 0% 4 - 0 - 0 - Broadcast Television 3 19% 94.7 24% 3 94.7 0 - 0 - Entertainment Media 3 19% 283.0 73% 3 283.0 0 - 0 - Consumer Book Publishing 2 13% - 0% 1 - 1 - 0 - Newspaper Publishing 2 13% - 0% 2 - 0 - 0 - Consumer Magazine Publishing 1 6% 10.0 3% 1 10.0 0 - 0 - Radio 1 6% - 0% 1 - 0 - 0 - Total 16 100% 387.7 100% 15 387.7 1 0.0 0 0.0
M&A & INVESTMENT SUMMARY FEBRUARY 2013 22 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CBS Corporation United States $43.39 -5% $27,569.5 $32,783.5 $708.0 5,922.0 $14,089.0 $3,488.0 24.8% 3.3% 2.3x 9.4x Discovery Communications, Inc. * United States 73.34 0% 25,959.4 29,907.4 1,297.0 5,243.0 4,487.0 1,997.0 44.5% 7.7% 6.7x 15.0x News Corp. United States 28.81 -2% 67,279.9 77,432.9 7,806.0 16,457.0 34,333.0 6,862.0 20.0% 0.5% 2.3x 11.3x Time Warner Inc. United States 53.17 -1% 49,702.8 66,733.8 2,841.0 19,871.0 28,729.0 7,280.0 25.3% -0.8% 2.3x 9.2x Viacom, Inc. United States 58.50 -4% 29,084.3 36,968.3 671.0 8,389.0 13,249.0 3,913.0 29.5% -11.9% 2.8x 9.4x The Walt Disney Company United States 54.59 -2% 98,558.8 115,162.8 3,207.0 17,457.0 42,840.0 10,900.0 25.4% 4.6% 2.7x 10.6x
Adjusted Weighted Average 2.5x 10.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.0x)
Radio Broadcasting Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Beasley Broadc ast Group Inc . United States $5.22 -15% $119.1 $224.1 $11.7 116.8 $100.2 $29.6 29.5% 2.6% 2.2x 7.6x CC Media Holdings, Inc. United States 2.65 -59% 227.0 20,119.8 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 3.27 -13% 570.3 3,286.1 47.0 2,692.0 1,103.2 411.7 37.3% 257.6% 3.0x 8.0x Dial Global, Inc . * United States 0.30 -92% 17.1 293.5 16.3 282.2 246.1 18.3 7.4% 165.6% 1.2x 16.0x Emmis Communications Corp. United States 1.61 -37% 63.5 260.8 11.2 160.6 227.6 34.3 15.1% 0.2% 1.1x 7.6x Entercom Communications Corp. United States 7.51 -11% 276.0 868.9 6.6 599.5 388.9 109.9 28.3% 1.6% 2.2x 7.9x Journal Communications Inc. United States 5.47 -6% 276.5 329.7 2.6 54.6 370.6 72.4 19.5% 1.4% 0.9x 4.6x Radio One Inc . United States 1.44 -17% 72.1 1,072.6 48.8 819.3 424.6 120.6 28.4% 16.4% 2.5x 8.9x Sa le m Co mmunic a t io ns Co rp. United States 6.28 -10% 153.3 401.8 0.4 248.9 229.2 51.8 22.6% 5.0% 1.8x 7.8x SIRIUS XM Radio Inc . * United States 3.11 -4% 20,398.4 22,312.7 520.9 2,435.2 3,402.0 1,138.3 33.5% 12.9% 6.6x 19.6x Spanish Broadcasting System Inc. United States 2.55 -66% 18.5 360.3 30.3 279.7 140.8 41.3 29.4% 2.2% 2.6x 8.7x Pandora Media, Inc. United States 12.20 -53% 2,074.9 1,994.4 80.5 - 383.4 (24.7) NM 59.3% 5.2x NM
Adjusted Weighted Average 3.9x 7.7x
*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 (14.1x)
B-to-B Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Euromoney Institutional Investor PLC United Kingdom $13.97 -3% $1,740.8 $1,798.6 $21.8 72.6 $635.5 $186.4 29.3% 8.5% 2.8x 9.6x Global Sourc es Lt d. Bermuda 7.75 -9% 263.4 165.3 110.8 - 238.8 44.5 18.7% 11.6% 0.7x 3.7x Informa plc Switzerland 7.61 0% 4,573.5 5,790.9 38.8 1,343.0 2,003.3 581.4 29.0% -3.4% 2.9x 10.0x TechTarget, Inc. United States 4.86 -37% 191.9 134.6 57.3 - 100.0 14.9 14.9% -5.2% 1.3x 9.0x The Dolan Company United States 2912.91 -70% 88. 3 263. 4 15. 6 192. 0 275. 8 42. 5 15. 4% 09%0.9% 10x1.0x 62x6.2x UBM plc Ireland 11.74 -2% 2,865.5 3,724.3 169.9 1,011.8 1,579.5 353.1 22.4% 8.4% 2.4x 10.5x
Adjusted Weighted Average 2.6x 9.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (10.8x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 23 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A. H. Belo Corporation United States $5.03 -9% $110.6 $76.5 $34.1 - $440.0 $33.0 7.5% -4.6% 0.2x 2.3x Daily Mail and General Trust plc * United Kingdom 10.77 0% 4,019.6 5,109.8 168.8 1,173.7 2,816.3 513.3 18.2% -0.1% 1.8x 10.0x Emmis Communic ations Corp. United States 1.61 -37% 63.5 260.8 11.2 160.6 227.6 34.3 15.1% 0.2% 1.1x 7.6x Gannett Co., Inc. United States 20.07 -3% 4,608.6 6,240.1 237.4 1,634.8 5,353.2 1,152.8 21.5% 2.2% 1.2x 5.4x Glacier Media, Inc. Canada 1.82 -24% 162.6 336.1 6.8 139.8 323.9 49.0 15.1% 23.9% 1.0x 6.9x John Wiley & Sons Inc. United States 36.58 -30% 2,214.5 2,825.8 92.6 703.8 1,748.2 324.5 18.6% -1.2% 1.6x 8.7x Journal Communications Inc. United States 5.47 -6% 276.5 329.7 2.6 54.6 370.6 72.4 19.5% 1.4% 0.9x 4.6x Martha Stewart Living Omnimedia Inc . United States 2572.57 -42% 172. 4 123. 3 49. 1 - 197. 6 (3. 3) NM -10. 8% 06x0.6x NM Meredith Corporation United States 42.02 -9% 1,809.9 2,150.1 24.7 365.0 1,434.8 264.3 18.4% 6.4% 1.5x 8.1x Reed Elsevier Group * United Kingdom 10.76 -1% 23,017.1 28,097.8 2,673.1 2,407.7 9,554.5 2,209.0 2.3% 2.3% 2.9x 12.7x Scholastic Corporation United States 30.10 -25% 963.1 917.0 257.3 211.2 2,055.3 196.1 9.5% 6.3% 0.4x 4.7x The E. W. Scripps Company United States 10.81 -8% 594.1 547.5 242.6 196.1 903.5 138.9 15.4% 24.0% 0.6x 3.9x The McClatchy Company United States 2.60 -25% 223.3 1,959.2 15.7 1,751.6 1,230.7 310.0 25.2% -3.1% 1.6x 6.3x The McGraw-Hill Companies, Inc . * United States 46.55 -21% 13,071.2 14,376.2 761.0 1,256.0 4,450.0 1,578.0 35.5% -28.8% 3.2x 9.1x The New York Times Company United States 9.67 -13% 1,428.0 1,593.9 614.1 776.9 1,990.1 267.5 13.4% -14.3% 0.8x 6.0x The Washington Post Company United States 398.54 -6% 2,960.2 2,705.7 729.9 457.7 4,017.7 528.0 13.1% -4.7% 0.7x 5.1x Valassis Communications Inc . United States 27.49 -12% 1,078.2 1,571.1 94.7 587.6 2,162.1 278.2 12.9% -3.3% 0.7x 5.6x
Adjusted Weighted Average 121.2x 747.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.4x)
Entertainment Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA DreamWorks Animation SKG Inc . United States $16.60 -28% $1,408.7 $1,515.1 $59.2 $165.0 $749.8 ($58.6) NM 6.2% 2.0x NM Eros International Plc United Kingdom 3.83 -18% 476.2 661.6 102.1 260.5 200.9 57.8 28.8% 6.5% 3.3x 11.4x Lions Gate Entertainment Corp. * United States 20.97 -1% 2,834.9 4,154.6 48.2 1,367.9 2,567.6 198.7 77%7.7% 94. 6% 16x1.6x 20. 9x Live Nation Entertainment, Inc. United States 10.59 -2% 2,021.1 2,955.3 1,001.1 1,740.0 5,819.0 410.8 7.1% 8.1% 0.5x 7.2x Village Roadshow Limited Australia 4.55 -5% 751.8 1,029.4 174.0 446.3 964.2 170.7 17.7% 2.3% 1.1x 6.0x World Wrestling Entertainment Inc. United States 8.33 -11% 622.7 470.4 152.3 - 484.0 63.2 13.1% 0.0% 1.0x 7.4x
Adjusted Weighted Average 1.4x 7.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (16.7x)
Film Exhibition Stock Price Chg % From Eqqyuity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Carmike Cinemas Inc. United States $15.66 -9% $278.5 $521.5 $82.0 $325.0 $516.2 $86.1 16.7% 8.5% 1.0x 6.1x Cinemark Holdings Inc . United States 27.80 -6% 3,193.9 4,381.9 540.8 1,717.0 2,473.5 545.6 22.1% 8.5% 1.8x 8.0x Cineplex Inc. Canada 33.09 0% 2,077.7 2,198.1 47.9 172.2 1,095.4 200.5 18.3% 9.4% 2.0x 11.0x IMAX Corporation * Canada 25.70 -4% 1,711.4 1,701.1 21.3 11.0 283.6 90.4 31.9% 21.9% 6.0x 18.8x National CineMedia, Inc. United States 15.25 -10% 882.7 1,737.8 106.6 879.0 448.8 212.2 47.3% 3.1% 3.9x 8.2x RealD Inc . United States 11.64 -25% 580.0 586.6 27.7 35.0 220.2 43.3 19.7% -13.7% 2.7x 13.5x Regal Entertainment Group United States 15.67 -4% 2,417.5 4,311.7 109.5 2,005.5 2,824.2 533.5 18.9% 5.3% 1.5x 8.1x
Adjusted Weighted Average 2.6x 9.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.9x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 24 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Out-of-Home Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AirMedia Group Inc. China $2.12 -40% $132.8 $15.2 $116.1 $0.0 $289.1 $23.2 8.0% 13.7% 0.1x 0.7x APG|SGA SA Switzerland 229.85 1% 675.2 620.6 56.5 0.0 343.1 73.0 21.3% 5.7% 1.8x 8.5x Clear Channel Outdoor Holdings Inc. United States 7.60 -49% 2,715.3 7,335.9 572.1 4,944.8 2,946.9 697.0 23.7% -1.9% 2.5x 10.5x Clear Media Ltd. Hong Kong 0.74 -1% 392.2 239.2 166.4 - 196.4 80.2 40.9% 2.4% 1.2x 3.0x Foc us Media Holding Ltd. Hong Kong 25.22 -16% 3,331.7 2,837.7 703.0 200.0 938.4 359.6 38.3% 34.9% 3.0x 7.9x JCDecaux SA France 27.22 -11% 6,045.6 6,159.7 398.6 555.0 3,211.3 715.1 22.3% 5.1% 1.9x 8.6x Lamar Advertising Co. * United States 46.24 -2% 4,330.8 6,368.0 38.4 2,075.6 1,182.9 513.7 43.4% 4.4% 5.4x 12.4x Mood Media Corporation Canada 1.80 -58% 308.8 761.3 11.4 480.7 455.2 117.6 25.8% 88.5% 1.7x 6.5x National CineMedia, Inc. United States 15.25 -10% 882.7 1,737.8 106.6 879.0 448.8 212.2 47.3% 3.1% 3.9x 8.2x NT N Buzztime Inc . * United States 0.23 -19% 16.1 13.9 2.4 0.2 24.2 0.1 0.2% 0.5% 0.6x 239.3x Tom Group Ltd. Hong Kong 0.11 -18% 441.5 662.1 110.1 285.8 301.4 1.2 0.4% -0.2% 2.2x NM Valassis Communic ations Inc . United States 27.49 -12% 1,078.2 1,571.1 94.7 587.6 2,162.1 278.2 12.9% -3.3% 0.7x 5.6x
Adjusted Weighted Average 2.2x 9.2x
*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 (98.3x)
Cable & Satellite Television Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Cablevision Systems Corporation United States $13.99 -26% $3,681.6 $14,584.8 $438.7 11,326.6 $6,705.5 $6,607.1 98.5% 0.1% 2.2x 2.2x Charter Communications, Inc. United States 86.39 -3% 8,740.8 21,608.8 7.0 12,875.0 7,504.0 2,644.0 35.2% 4.2% 2.9x 8.2x Comcast Corporation United States 39.79 -5% 104,243.4 149,724.4 12,415.0 40,458.0 62,570.0 19,977.0 31.9% 12.0% 2.4x 7.5x DIRECT V United States 48.17 -13% 27,607.1 43,633.1 1,902.0 17,528.0 29,740.0 7,226.0 24.3% 9.2% 1.5x 6.0x Dish Net work Corp. United States 34.80 -9% 15,762.9 20,448.0 7,237.8 11,888.1 14,266.5 2,935.3 20.6% 1.6% 1.4x 7.0x General Communication Inc. United States 8.45 -22% 353.8 1,290.7 27.6 948.7 695.3 216.2 31.1% 2.9% 1.9x 6.0x Liberty Global Inc . * United States 68. 89 -2% 17, 159. 5 45, 028. 4 2, 230. 2 30, 224. 0 10, 310. 8 4, 757. 2 46. 1% 84%8.4% 44x4.4x 95x9.5x Time Warner Cable Inc. United States 86.39 -15% 25,529.4 49,053.4 3,470.0 26,990.0 21,386.0 7,587.0 35.5% 8.7% 2.3x 6.5x Virgin Media, Inc. United States 46.40 0% 12,497.4 21,967.9 345.2 9,815.7 6,664.8 2,687.5 40.3% 2.7% 3.3x 8.2x Ziggo N.V. * Netherlands 33.89 -6% 6,777.9 10,591.6 121.9 3,964.7 2,026.3 1,071.1 52.9% 4.0% 5.2x 9.9x
Adjusted Weighted Average 2.4x 7.1x
*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 (9.3x)
Cable Networks Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMC Networks Inc. United States $57.40 -6% $4,155.7 $6,072.6 $313.3 2,230.1 $1,352.6 $452.8 33.5% 13.9% 4.5x 13.4x British Sky Broadcasting Group plc United Kingdom 12.90 0% 20,661.6 22,834.1 2,272.2 4,599.8 11,312.5 2,576.2 22.8% 2.7% 2.0x 8.9x CBS Corporation United States 43.39 -5% 27,569.5 32,783.5 708.0 5,922.0 14,089.0 3,488.0 24.8% 3.3% 2.3x 9.4x Crown Media Holdings Inc. United States 1.92 -9% 690.6 1,145.6 43.7 498.8 349.9 261.3 74.7% 8.2% 3.3x 4.4x Discovery Communications, Inc. * United States 73.34 0% 25,959.4 29,907.4 1,297.0 5,243.0 4,487.0 1,997.0 44.5% 7.7% 6.7x 15.0x Grupo Televisa, S.A.B. Mexico 26.83 -8% 15,313.5 18,508.2 1,878.1 4,465.0 5,337.6 2,031.5 38.1% 10.7% 3.5x 9.1x Scripps Networks Interactive, Inc. United States 63.05 -5% 9,387.4 10,777.7 437.5 1,384.2 2,307.2 1,040.9 45.1% 11.3% 4.7x 10.4x
Adjusted Weighted Average 3.8x 9.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.5x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 25 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Broadcast Television Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Belo Corp. United States $8.64 -5% $880.7 $1,604.2 $9.4 733.0 $714.7 $259.0 36.2% 9.9% 2.2x 6.2x Entravision Communic ations Corporation United States 2.00 -10% 171.9 487.0 45.2 360.3 223.3 75.9 34.0% 14.8% 2.2x 6.4x Fisher Communications, Inc. * United States 36.77 -3% 326.4 306.0 20.4 - 168.2 29.6 17.6% 2.6% 1.8x 10.3x Gray T elevision Inc . United States 4.17 -16% 238.6 1,035.7 45.7 820.6 404.8 176.6 43.6% 31.8% 2.6x 5.9x Journal Communications Inc. United States 5.47 -6% 276.5 329.7 2.6 54.6 370.6 72.4 19.5% 1.4% 0.9x 4.6x LIN TV Corp. United States 11.37 -15% 640.1 1,487.3 46.3 890.2 553.5 233.7 42.2% 38.4% 2.7x 6.4x Nexstar Broadcasting Group, Inc. United States 14.86 -3% 437.1 1,040.1 12.2 615.2 348.7 128.8 36.9% 9.9% 3.0x 8.1x Sinclair Broadcast Group Inc. United States 14. 08 -9% 1, 143. 3 3, 393. 8 22. 9 2, 273. 4 1, 061. 7 414. 5 39. 0% 38. 7% 32x3.2x 82x8.2x The E. W. Scripps Company United States 10.81 -8% 594.1 547.5 242.6 196.1 903.5 138.9 15.4% 24.0% 0.6x 3.9x
Adjusted Weighted Average 2.3x 6.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (8.6x)
Yellow Pages Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Dex One Corporat ion United States $1. 78 -18% $91. 3 $2, 001. 7 $95. 6 $2, 005. 9 $1, 350. 7 $538. 6 39. 9% -9. 1% 15x1.5x 37x3.7x Eniro AB Sweden 2.00 -24% 200.6 630.1 30.4 455.5 614.2 149.9 24.4% -7.5% 1.0x 4.2x PagesJaunes Groupe France 2.68 -29% 744.8 2,993.9 155.0 2,421.3 1,405.8 593.0 42.2% -3.2% 2.1x 5.0x SuperMedia Inc. United States 4.00 -12% 62.7 1,443.7 94.0 1,475.0 1,426.0 564.0 39.6% -15.3% 1.0x 2.6x PubliGroupe AG * Switzerland 158.48 -4% 373.9 323.5 114.2 52.8 1,375.2 25.3 1.8% 42.7% 0.2x 12.8x Yellow Media Limited Canada 7.73 -20% 216.1 976.7 107.2 891.4 1,111.3 525.3 47.3% -16.6% 0.9x 1.9x
Adjusted Weighted Average 1.3x 4.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.0x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 26 TECHNOLOGY Transactions by Subsegment and Buyer Type
• Big Data and Cloud Computing were the most active subsegments in Technology, each announcing five transactions for an aggregate $64 million in reported value • Select acquisitions › Rackspace US’ acquisition of ObjectRocket, which has developed a MongoDB database-as-a-service that was created to address a deficiency in database cloud infrastructures › Salesforce.com’s acquisition of Japan-based Pasona Tquila, a company that develops cloud computing systems for businesses and offers system supports service • Select investments › The $45 million investment in Mu Sigma, a provider of big data analytics and decision-support solutions, from from MasterCard and a group of global financial investors, including Fidelity Investment › The $26 million investment in Ravello Systems, which operates a testing platform for the public cloud, led by Sequoia Capital › The $24 million investment in Elasticsearch, which provides open source big data search and analytics software that is designed for both structured and unstructured data across distributed machines, led by Index Ventures
TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM Big Data 5 19% 30.4 8% 0 - 0 - 5 30.4 Cloud Computing 5 19% 34.0 9% 3 - 0 - 2 34.0 Enabling 4 15% 13.4 3% 1 - 0 - 3 13.4 Financial 4 15% 134.5 35% 1 110.2 0 - 3 24.3 Mobile Infrastructure 4 15% 120.0 31% 2 - 0 - 2 120.0 Data Center 2 8% 51.6 13% 1 - 0 - 1 51.6 Cloud Storage 1 4% - 0% 1 - 0 - 0 - Virtualization 1 4% - 0% 1 - 0 - 0 - Home Automation 0 0% - 0% 0 - 0 - 0 - Total 26 100% 383.8 100% 10 110.2 0 0.0 16 273.7
M&A & INVESTMENT SUMMARY FEBRUARY 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 3M Company United States $104.00 -1% $71,759.0 $73,765.0 $4,531.0 $6,072.0 $29,904.0 $7,771.0 26.0% 1.0% 2.5x 9.5x Google Inc. United States 801.20 -1% 264,126.2 223,248.2 48,088.0 7,210.0 50,175.0 16,278.0 32.4% 32.4% 4.4x 13.7x Intel Corporation United States 20.88 -29% 103,272.5 98,645.5 18,195.0 13,568.0 53,341.0 22,160.0 41.5% -1.2% 1.8x 4.5x International Business Machines Corporation United States 200.83 -5% 223,827.0 246,044.0 11,176.0 33,269.0 104,507.0 26,858.0 25.7% -2.3% 2.4x 9.2x Microsoft Corporation United States 27.80 -16% 232,859.6 178,979.6 68,098.0 14,218.0 72,930.0 28,867.0 39.6% 1.2% 2.5x 6.2x Oracle Corporation United States 34.24 -6% 162,102.3 148,591.3 33,695.0 19,757.0 37,230.0 17,300.0 46.5% 1.4% 4.0x 8.6x QUALCOMM Incorporated United States 65.64 -5% 112,778.1 99,554.1 13,275.0 31.0 20,458.0 7,226.0 35.3% 25.6% 4.9x 13.8x ACI Worldwide, Inc. United States 45.81 -6% 1,804.2 2,102.1 76.3 374.3 666.6 154.9 23.2% 43.3% 3.2x 13.6x ADATA Technology Co., Ltd. Taiwan 1.26 -9% 265.7 380.1 76.6 192.2 1,006.0 30.3 3.0% -3.5% 0.4x 12.5x Advanced Micro Devices, Inc. United States 2.49 -70% 1,778.1 2,818.1 1,002.0 2,042.0 5,422.0 9.0 0.2% -17.4% 0.5x NM Akamai Technologies, Inc. United States 36.96 -13% 6,559.2 6,121.6 437.6 - 1,373.9 511.4 37.2% 18.6% 4.5x 12.0x AVG Technologies N.V. Netherlands 15.70 -4% 848.0 893.4 51.9 97.2 356.0 99.3 27.9% 30.7% 2.5x 9.0x Bright c ove, Inc . United States 6.30 -75% 175.3 147.1 30.0 - 88.0 (8.9) NM 38.4% 1.7x NM CA Technologies United States 24.51 -12% 11,174.7 10,055.7 2,560.0 1,441.0 4,680.0 1,690.0 36.1% -1.6% 2.1x 6.0x Carbonite, Inc. United States 9.82 -16% 251.9 196.6 55.3 - 84.0 (5.2) NM 38.9% 2.3x NM Check Point Software Technologies Ltd. Israel 52.51 -19% 10,754.0 9,250.7 1,503.3 - 1,342.7 761.4 56.7% 7.7% 6.9x 12.1x ChinaCache International Holdings Ltd. China $3.54 -54% $81.2 $37.6 $43.6 $0.0 $122.2 $14.2 11.6% 38.6% 0.3x 2.6x Citrix Systems, Inc. United States 70.90 -19% 13,216.0 12,287.4 928.6 - 2,586.1 609.8 23.6% 17.2% 4.8x 20.2x CommVault Systems, Inc. * United States 73.95 -7% 3,413.4 3,016.1 397.2 - 471.6 77.6 16.5% 23.4% 6.4x 38.9x Cray Inc. United States 19.35 -3% 716.8 411.1 305.6 - 421.1 37.1 8.8% 78.4% 1.0x 11.1x Crossroads Systems, Inc. United States 1.58 -75% 18.7 16.1 6.9 4.3 14.0 (9.6) NM -6.6% 1.2x NM Dat alink Corporat ion United States 10.38 -6% 194.4 190.1 10.3 6.0 491.2 23.9 4.9% 29.3% 0.4x 8.0x Dell Inc . United States 13.95 -20% 24,253.5 20,582.5 12,777.0 9,085.0 56,940.0 4,223.0 7.4% -8.3% 0.4x 4.9x Dot Hill Systems Corp. United States 1.30 -21% 75.9 37.1 40.5 1.8 199.2 (12.5) NM -7.0% 0.2x NM Elecom Co., Ltd. Japan 15.58 -36% 313.6 231.3 115.5 27.3 738.4 81.9 11.1% 5.6% 0.3x 2.8x EMC Corporation United States 23.01 -23% 48,422.9 45,132.6 6,167.1 1,710.1 21,713.9 5,180.4 23.9% 8.5% 2.1x 8.7x ePlus inc . United States 45.96 -7% 374.6 449.2 43.4 117.9 965.8 72.7 7.5% 43.5% 0.5x 6.2x Euronet Worldwide Inc. United States 24.14 -4% 1,197.5 1,311.7 191.2 301.2 1,267.6 150.9 11.9% 9.2% 1.0x 8.7x F-Secure Oyj Finland 2.17 -19% 337.5 293.9 43.9 - 207.3 31.1 15.0% 7.7% 1.4x 9.4x Fusion-io, Inc. * United States 16.88 -50% 1,630.5 1,262.0 368.5 - 439.5 24.0 5.5% 47.8% 2.9x 52.6x Gemalt o NV Netherlands 91.25 -7% 7,639.6 7,258.4 395.3 20.6 2,671.5 375.0 14.0% 4.4% 2.7x 19.4x GraphOn Corp. United States 0.40 -5% 34.6 29.7 4.9 - 6.7 (3.4) NM 1.9% 4.4x NM Green Dot Corporation United States 14.02 -57% 504.6 146.5 408.8 50.7 554.5 90.3 16.3% 14.4% 0.3x 1.6x Imperva Inc . United States 36.50 -14% 877.7 774.2 102.3 - 104.2 (5.3) NM 33.1% 7.4x NM Integrated Electrical Services, Inc. United States 5.80 -9% 87.5 79.1 20.9 12.5 474.4 5.0 1.1% 17.0% 0.2x 15.7x Interxion Holding NV Netherlands 24.73 -1% 1,686.0 1,975.3 90.6 379.9 365.4 143.9 39.4% 13.4% 5.4x 13.7x J-Stream Inc. Japan 492.61 -16% 57.3 44.1 16.0 - 61.7 5.0 8.2% 2.4% 0.7x 8.7x Keynot e Syst ems, Inc . United States 15.28 -25% 279.2 227.9 51.2 - 125.2 16.4 13.1% 12.5% 1.8x 13.9x Limelight Networks, Inc. United States 2.12 -45% 207.8 82.0 128.0 2.1 180.2 (4.7) NM 5.2% 0.5x NM LogMeIn, Inc. United States 17.86 -53% 443.2 231.1 212.1 - 138.8 13.7 9.9% 16.2% 1.7x 16.9x LSI Corporation United States 6.96 -24% 3,826.2 3,150.2 676.0 - 2,506.1 366.6 14.6% 22.6% 1.3x 8.6x Melbourne IT Ltd. Australia 1.94 -5% 159.9 181.5 17.0 38.6 186.3 27.2 14.6% 1.5% 1.0x 6.7x Micron Technology Inc. United States 8.38 -7% 8,557.4 10,438.4 2,271.0 3,435.0 7,978.0 1,393.0 17.5% -7.5% 1.3x 7.5x NEC Corporation Japan 2.48 -17% 6,442.2 13,487.4 2,356.7 8,489.0 35,776.2 2,656.8 7.4% 1.9% 0.4x 5.1x NetApp, Inc. United States 33.84 -28% 12,196.2 7,709.9 6,723.9 2,237.6 6,318.4 857.4 13.6% 6.0% 1.2x 9.0x ProAct IT Group AB Sweden 15.36 -36% 143.0 157.9 15.8 28.9 373.7 22.2 5.9% 9.0% 0.4x 7.1x Qualys, Inc. * United States 11.86 -28% 372.5 256.1 118.4 2.0 91.4 10.3 11.3% 20.0% 2.8x 24.8x Quantum Corporation United States 1.26 -54% 303.6 457.3 51.3 205.0 607.9 0.1 0.0% -7.5% 0.8x NM Rac kspace Hosting, Inc. United States 55.86 -31% 7,649.9 7,483.2 292.1 125.4 1,309.2 422.6 32.3% 27.7% 5.7x 17.7x Red Hat , Inc . * United States 50.81 -19% 9,816.2 8,929.8 886.3 - 1,277.9 263.8 20.6% 18.2% 7.0x 33.8x SanDisk Corp. United States 50.41 -4% 12,191.5 11,008.3 2,875.5 1,696.6 5,052.5 1,108.3 21.9% -10.8% 2.2x 9.9x SAP AG Germany 78.59 -3% 93,718.3 97,154.3 3,466.3 6,918.1 21,388.4 6,506.7 30.4% 14.0% 4.5x 14.9x
M&A & INVESTMENT SUMMARY FEBRUARY 2013 28 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Seagate Technology Public Limited Company Ireland 32.16 -15% 11,541.0 12,501.0 1,872.0 2,818.0 16,332.0 4,342.0 26.6% 41.3% 0.8x 2.9x Silicon Graphics International Corp. United States 15.05 -6% 490.3 366.1 124.1 - 743.0 (6.3) NM 4.2% 0.5x NM SK Hynix, Inc. South Korea 24.38 -14% 16,922.2 21,233.6 1,677.9 6,085.1 9,554.8 2,798.3 29.3% -2.2% 2.2x 7.6x Sony Corporation Japan 14.49 -26% 14,644.2 20,089.8 15,680.4 16,036.6 76,815.4 3,393.8 4.4% 2.6% 0.3x 5.9x Splunk, Inc. * United States 36.13 -9% 3,563.0 3,257.0 305.9 - 198.9 (17.4) NM 64.5% 16.4x NM Symantec Corporation United States 23.44 -1% 16,154.6 14,978.6 4,252.0 3,076.0 6,839.0 1,839.0 26.9% 1.7% 2.2x 8.1x Synchronoss Technologies, Inc. United States 30.17 -12% 1,140.7 1,094.0 56.2 9.5 273.7 60.6 22.2% 19.5% 4.0x 18.0x Teradata Corporation United States 58.06 -28% 9,626.3 9,171.3 729.0 274.0 2,665.0 662.0 24.8% 12.8% 3.4x 13.9x Trend Micro Inc. Japan 28.37 -7% 3,731.8 2,445.2 1,374.0 - 1,084.9 345.7 31.9% -2.6% 2.3x 7.1x Unisys Corporation United States 22.98 -7% 1,010.7 826.6 655.6 210.3 3,706.4 373.9 10.1% -3.8% 0.2x 2.2x VeriSign, Inc. United States 45.81 -9% 7,026.9 6,168.1 1,556.4 697.6 873.6 511.4 58.5% 13.2% 7.1x 12.1x VMware, Inc. * United States 71.83 -40% 30,768.2 26,587.3 4,630.8 450.0 4,605.0 1,160.0 25.2% 22.2% 5.8x 22.9x Western Digital Corporation United States 47.16 -5% 11,349.8 9,661.8 3,816.0 2,128.0 15,648.0 3,792.0 24.2% 67.5% 0.6x 2.5x Xoom Corporation United States 21.26 -11% 676.9 646.7 70.2 40.0 80.0 (2.8) NM 60.0% 8.1x 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 (8.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.1x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 29 SOFTWARE Transactions by Subsegment and Buyer Type
• Healthcare and Security Software were the most active subsegments with 10 transactions announced each, while Financial Software was the highest reported-value subsegment, with four transactions worth $147 million • Select acquisitions › Swiftpage’s $101 million acquisition of Sage Software’s non-CRM assets, which include its accounting and business management software for start-up, small, midsized, and larger businesses › Linedata’s $45 million acquisition of CapitalStream, a developer of financial front office automation solutions › SAP’s acquisition of SmartOps, which provides enterprise-class supply chain optimization software solutions • Select investments › The $80 million investment in New Relic, which provides application management solutions, led by Insight Venture Partners, at a valuation of approximately $750 million › The $31 million investment in WhiteHat Security, a provider of software that conducts continuous vulnerability assessment and management services, led by JMI Equity
SOFTWARE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Healthcare 10 19% 11.7 2% 7 0.6 1 - 2 11.1 Security 10 19% 112.7 24% 0 - 0 - 10 112.7 Application Management 7 13% 123.0 26% 0 - 0 - 7 123.0 HR 4 8% 11.0 2% 1 - 1 - 2 11.0 Collaboration 4 8% 2.5 1% 3 - 0 - 1 2.5 Financial 4 8% 147.2 31% 2 146.2 0 - 2 1.0 ERP 3 6% 36.0 8% 2 - 0 - 1 36.0 Engineering 3 6% 0.0 0% 3 - 0 - 0 - Software Development Tools 3 6% 1.5 0% 2 - 0 - 1 1.5 Other* 4 8% 27.6 6% 2 0.0 0 - 2 27.6 Total 52 100% 473.2 100% 22 146.8 2 0.0 28 326.4 *Other includes Data Management, Infrustructure, Legal
M&A & INVESTMENT SUMMARY FEBRUARY 2013 30 SOFTWARE PUBLIC COMPANY VALUATIONS
($ 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Advent Software, Inc. United States 26.20 -7% 1,322.9 1,248.5 169.4 95.0 358.8 78.7 21.9% 10.0% 3.5x 15.9x Ebix Inc. United States 16.03 -36% 610.2 662.8 31.0 83.6 189.4 78.0 41.2% 18.4% 3.5x 8.5x EPIQ Systems, Inc. United States 12.44 -10% 446.6 676.3 3.3 233.0 325.1 75.2 23.1% 28.5% 2.1x 9.0x Fidessa group plc United Kingdom 28.46 -5% 1,052.0 942.6 117.2 - 452.9 92.2 20.4% 0.1% 2.1x 10.2x Guidewire Soft ware, Inc . * United States 36.55 -5% 2,025.1 1,859.2 165.8 - 260.1 18.7 7.2% 28.2% 7.1x 99.3x Innovation Group plc United Kingdom 0.38 -1% 369.4 333.4 72.0 30.0 312.3 35.9 11.5% 10.2% 1.1x 9.3x Management Consulting Group PLC United Kingdom 0.42 -30% 206.8 260.9 19.4 75.4 460.8 40.1 8.7% -0.3% 0.6x 6.5x PfPerforman t Financ ilial Corpora tion UitdUnited SttStates 13. 25 -3% 601. 4 719. 8 32. 2 150. 5 196. 7 65. 2 33. 1% 00%0.0% 3.7x 11. 0x RealPage, Inc . United States 21.66 -20% 1,640.8 1,617.0 33.8 10.0 322.2 53.7 16.7% 24.9% 5.0x 30.1x Solera Holdings Inc . United States 56.30 -1% 3,878.4 4,681.0 448.2 1,152.6 801.3 338.8 42.3% 6.6% 5.8x 13.8x SS&C Tec hnologies Holdings, Inc . United States 25.31 -6% 1,995.8 2,921.8 86.2 1,012.1 551.8 213.3 38.7% 48.8% 5.3x 13.7x Temenos Group AG Switzerland 22.77 -3% 1,569.7 1,747.5 72.6 248.9 443.0 47.0 10.6% -10.7% 3.9x 37.2x Tyler Tec hnologies, Inc . United States 56.40 -2% 1,772.3 1,783.9 6.4 18.0 363.3 69.3 19.1% 17.4% 4.9x 25.7x
Adjusted Weighted Average 4.8x 18.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (47.3x)
Healthcare Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accelrys Inc. United States 9.46 -5% 526.3 410.7 115.6 - 162.5 10.9 6.7% 12.6% 2.5x 37.7x Allsc ripts Healthc are Solutions, Inc . United States 12.71 -35% 2,179.3 2,517.3 104.0 442.0 1,446.3 174.6 12.1% 0.2% 1.7x 14.4x Athenahealth, Inc. * United States 93.79 -4% 3,407.6 3,214.5 193.1 - 422.3 51.1 12.1% 30.3% 7.6x 63.0x Cegedim SA France 27.90 -27% 389.7 1,018.7 72.7 681.5 1,151.6 181.8 15.8% -5.3% 0.9x 5.6x Cerner Corporation United States 87.46 -2% 15,061.3 14,220.7 1,036.8 196.1 2,610.1 712.5 27.3% 20.9% 5.4x 20.0x Co mput e r P ro gra ms & Sy s t e ms Inc . United States 52.14 -17% 577.6 558.0 19.6 - 183.3 44.4 24.2% 5.7% 3.0x 12.6x Craneware plc United Kingdom 6.30 -14% 170.0 143.3 28.6 - 42.4 12.1 28.4% 5.3% 3.4x 11.9x Epocrates, Inc. United States 11.75 -2% 293.2 214.1 79.1 - 110.1 (2.5) NM -3.4% 1.9x NM Greenway Medical Technologies, Inc. * United States 15.85 -19% 469.6 442.2 27.4 - 134.7 7.9 5.9% 27.4% 3.3x 55.8x McKesson Corporation United States 106.13 -1% 24,716.5 26,469.5 2,726.0 4,479.0 123,534.0 2,846.0 2.3% 3.0% 0.2x 9.3x MedAssets, Inc. United States 18.47 -8% 1,098.2 1,978.8 13.7 894.3 640.1 196.8 30.7% 10.7% 3.1x 10.1x Merge Healthc are Inc orporated United States 2.45 -64% 228.1 443.6 35.1 250.0 248.9 31.1 12.5% 7.1% 1.8x 14.2x Quality Systems Inc. United States 18.52 -59% 1,102.6 995.9 106.7 - 457.9 108.0 23.6% 9.6% 2.2x 9.2x Streamline Health Solutions, Inc. United States 5.57 -16% 70.4 80.7 10.5 17.9 21.5 2.7 12.6% 23.0% 3.7x 29.7x
Adjusted Weighted Average 2.2x 13.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (41.2x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 31 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 51job Inc. China 55.51 -13% 1,603.9 1,197.8 406.1 - 232.2 82.4 35.5% 11.4% 5.2x 14.5x Allocate Software plc. United Kingdom 1.15 -16% 73.6 70.4 9.8 6.4 58.7 6.9 11.7% 21.3% 1.2x 10.3x Concur Technologies, Inc. United States 70.26 -8% 3,907.6 3,678.0 484.6 254.8 462.2 44.8 9.7% 25.1% 8.0x 82.0x Cornerstone OnDemand, Inc. United States 33.86 -1% 1,709.3 1,638.5 76.4 5.6 117.9 (24.7) NM 61.5% 13.9x NM Dic e Holdings, Inc . United States 9.64 -12% 564.8 568.6 42.2 46.0 195.4 71.3 36.5% 9.1% 2.9x 8.0x LinkedIn Corporation * United States 168.18 -2% 18,340.6 17,591.1 749.5 - 972.3 125.5 12.9% 86.2% 18.1x 140.2x Monster Worldwide, Inc. United States 5.12 -51% 569.0 585.0 148.2 164.2 890.4 142.5 16.0% -10.4% 0.7x 4.1x SbSaba SftSoftware, Inc. UitdUnited SttStates 8748.74 -33% 260. 3 246. 2 15. 0 0. 9 121. 3 (9. 8) NM 77%7.7% 202.0x NM The Ultimate Software Group, Inc. United States 98.27 -8% 2,682.9 2,625.2 68.0 10.3 332.3 42.7 12.9% 23.4% 7.9x 61.4x Workday, Inc. * United States 55.29 -5% 9,178.1 8,407.8 797.4 27.0 235.3 (84.0) NM 0.0% 35.7x NM
Adjusted Weighted Average 14.1x 54.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (31.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (97.2x)
Security Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AVG Technologies N.V. Netherlands 15.70 -4% 848.0 893.4 51.9 97.2 356.0 99.3 27.9% 30.7% 2.5x 9.0x Checkpoint Systems Inc. United States 11.86 -6% 481.5 522.9 75.1 115.7 800.5 47.1 5.9% -4.3% 0.7x 11.1x Cisco Systems, Inc. United States 20.86 -4% 111,198.3 81,123.3 46,376.0 16,291.0 47,252.0 13,356.0 28.3% 5.4% 1.7x 6.1x Fortinet Inc. * United States 24.18 -16% 3,906.9 3,493.2 413.7 - 533.6 112.0 21.0% 23.1% 6.5x 31.2x Infoblox Inc . United States 21.09 -13% 1,021.9 842.0 179.8 - 192.4 (3.4) NM 26.7% 4.4x NM Symantec Corporation United States 23.44 -1% 16,154.6 14,978.6 4,252.0 3,076.0 6,839.0 1,839.0 26.9% 1.7% 2.2x 8.1x Websense, Inc. United States 14.99 -32% 548.0 553.3 64.6 69.9 361.5 61.9 17.1% -0.7% 1.5x 8.9x Gemalt o NV Netherlands 91.25 -7% 7,639.6 7,258.4 395.3 20.6 2,671.5 375.0 14.0% 4.4% 2.7x 19.4x Imperva Inc . United States 36.50 -14% 877.7 774.2 102.3 - 104.2 (5.3) NM 33.1% 7.4x NM JiJuniper NtkNetworks, Inc. UitdUnited SttStates 20. 68 -10% 10, 535. 0 8, 685. 4 2, 849. 3 999. 2 4, 365. 4 543. 9 12%2.5% -1.9% 202.0x1606.0x NQ Mobile Inc . * China 6.92 -46% 304.1 183.6 126.2 0.7 74.6 4.4 5.9% 118.6% 2.5x 41.7x Palo Alto Networks, Inc. * United States 61.13 -16% 4,184.3 3,862.8 321.6 - 284.0 0.9 0.3% 86.7% 13.6x NM Proofpoint, Inc. United States 13.98 -21% 462.0 379.2 86.8 4.0 106.3 (12.0) NM 29.9% 3.6x NM Qihoo 360 Technology Co. Ltd * China 30.77 -10% 3,672.5 3,325.9 348.2 - 288.4 62.6 21.7% 130.1% 11.5x 53.2x Sourcefire, Inc. * United States 53.63 -10% 1,613.7 1,517.5 96.2 - 223.1 14.6 6.5% 34.7% 6.8x 104.3x Trend Micro Inc. Japan 28.37 -7% 3,731.8 2,445.2 1,374.0 - 1,084.9 345.7 31.9% -2.6% 2.3x 7.1x VeriSign, Inc. United States 45.81 -9% 7,026.9 6,168.1 1,556.4 697.6 873.6 511.4 58.5% 13.2% 7.1x 12.1x
Adjusted Weighted Average 2.5x 8.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (12.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (53.1x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 32 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Ansys, Inc. United States 75.80 -2% 7,021.9 6,497.9 577.2 53.1 798.0 379.1 47.5% 15.4% 8.1x 17.1x Autodesk, Inc. United States 36.72 -14% 8,251.0 7,042.3 1,954.3 745.6 2,312.2 477.6 20.7% 4.4% 3.0x 14.7x Aveva Group plc United Kingdom 34.98 0% 2,378.4 2,126.0 268.3 - 335.9 99.7 29.7% 15.3% 6.3x 21.3x
Adjusted Weighted Average 5.5x 15.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.1x)
Infrastructure Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA BMC Soft ware Inc . United States 40.11 -12% 5,731.3 5,892.8 1,181.5 1,343.0 2,197.5 608.2 27.7% 1.3% 2.7x 9.7x CA Technologies United States 24.51 -12% 11,174.7 10,055.7 2,560.0 1,441.0 4,680.0 1,690.0 36.1% -1.6% 2.1x 6.0x Co mmV a ult S y s t e ms , Inc . * United States 73.95 -7% 3,413.4 3,016.1 397.2 - 471.6 77.6 16.5% 23.4% 6.4x 38.9x Daegis Inc . United States 1.35 -28% 19.9 34.4 4.0 18.6 40.9 3.0 7.4% -12.7% 0.8x 11.4x Guidance Software, Inc. * United States 9.81 -33% 251.1 219.1 32.6 0.6 129.5 7.1 5.5% 23.8% 1.7x 31.0x Informatica Corporation United States 35.01 -36% 3,775.5 3,242.3 535.6 - 811.6 180.3 22. 2% 35%3.5% 40x4.0x 18. 0x IntraLinks Holdings, Inc . United States 5.88 -15% 320.2 320.1 75.3 75.2 216.7 30.8 14.2% 1.8% 1.5x 10.4x Pervasive Software Inc. United States 9.15 -1% 154.7 109.1 45.7 - 50.7 4.6 9.0% 2.8% 2.1x 23.8x ServiceNow, Inc. * United States 32.47 -22% 4,059.5 3,744.8 314.7 - 243.7 (24.1) NM 66.1% 15.4x NM TIBCO Software Inc. United States 21.45 -38% 3,444.2 3,243.8 761.7 560.2 1,024.6 214.3 20.9% 11.3% 3.2x 15.1x
Adjusted Weighted Average 3.1x 10.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (12.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (29.2x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 33 COMMUNICATIONS Transactions by Subsegment and Buyer Type
• There were 17 transactions in the Communications segment in February. Enterprise Mobility was the most active subsegment, announcing six transactions worth $204 million in reported value • Select acquisitions › Oracle’s $2 billion acquisition of session delivery network solutions provider Acme Packet, at an enterprise value of $1.6 billion › Juniper Networks’ $10 million acquisition of Webscreen Systems, which offers solutions that monitor and filter Web traffic at the network perimeter as well as protects the network from a range of packet flood situations • Select investments › The $200 million investment in AirWatch, a nine-year-old company that specializes in helping large companies manage and secure the mobile devices their employees use, led by Insight Venture Partners › The $10 million investment in Xirrus, a maker of high-performance Wi-Fi networking hardware, from existing investors August Capital, Canaan Partners, InterWest Partners, QuestMark Partners, and U.S. Venture Partners
COMMUNICATIONS TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Enterprise Mobility 6 35% 204.0 11% 1 - 0 - 5 204.0 Networking Equipment 4 24% 15.1 1% 3 5.0 0 - 1 10.1 Communications Software 3 18% 16.5 1% 2 10.0 0 - 1 6.5 VoIP Equipment & Software 2 12% 1,652.7 87% 2 1,652.7 0 - 0 - Messaging & Mediation Software 1 6% 3.0 0% 0 - 0 - 1 3.0 Satellite & Microwave Equipment 1 6% 11.8 1% 0 - 0 - 1 11.8 Total 17 100% 1,903.1 100% 8 1,667.7 0 0.0 9 235.4
M&A & INVESTMENT SUMMARY FEBRUARY 2013 34 COMMUNICATIONS PUBLIC COMPANY VALUATION
($ in millions, except stock
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM M Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev Aastra Technologies Ltd. Canada $19.16 -10% $220.9 $116.6 $107.7 0.2 $608.6 $38.3 6.3% -12.5% 0.2x Acme Packet, Inc. * United States 29.19 -3% 1,968.8 1,610.5 358.2 - 274.4 8.6 3.1% -10.7% 5.9x ADTRAN Inc. United States 22.35 -32% 1,387.2 1,204.3 228.9 46.0 620.6 70.2 11.3% -13.5% 1.9x Advanced Media, Inc. Japan 584.64 -23% 89.2 66.0 24.7 - 15.4 (2.0) NM -10.0% 4.3x Alcatel-Lucent, S.A. France 1.40 -43% 3,175.9 3,996.3 6,498.8 6,343.2 19,046.7 544.5 2.9% -5.7% 0.2x Allot Communications Ltd. Israel 13.73 -53% 434.6 291.6 143.1 - 104.8 14.3 13.7% 34.7% 2.8x Ambient Corporation United States 2.70 -72% 45.0 29.7 15.3 - 50.6 (3.0) NM - 5.9% 0.6x Anaren, Inc. United States 19.35 -7% 255.6 228.5 35.1 8.0 150.0 23.9 16.0% -9.5% 1.5x Aruba Networks, Inc. * United States 24.92 -7% 2,802.8 2,400.5 402.3 - 571.0 40.6 7.1% 22.8% 4.2x AudioCodes Ltd. Israel 4.09 -14% 155.1 144.8 33.5 23.3 127.5 (0.9) NM -18.2% 1.1x Aviat Networks, Inc. United States 3.56 -9% 218.1 134.1 94.8 10.8 471.6 13.2 2.8% 4.2% 0.3x Axesstel Inc. United States 1.49 -24% 36.0 44.5 1.9 10.4 59.7 4.9 8.2% 10.2% 0.7x Blac kline GPS Corp. * Canada 1.46 -3% 25.6 19.4 6.5 0.1 2.6 (3.0) NM 37.1% 7.4x Blonder Tongue Laboratories United States 1.27 -25% 7.9 15.7 0.2 8.0 29.4 (0.4) NM 6.0% 0.5x BroadSoft, Inc. United States 21.00 -54% 587.6 511.4 163.6 87.4 164.8 31.0 18.8% 19.4% 3.1x Brocade Communications United States 5.61 -13% 2,528.4 2,744.5 683.6 899.6 2,265.9 493.1 21.8% 4.8% 1.2x CalAmp Corp. United States 10.95 -5% 311.7 303.5 13.6 5.3 169.8 16.7 9.8% 30.6% 1.8x Calix Inc . United States 8.57 -13% 419.2 372.2 47.0 - 330.2 (1.3) NM - 4.2% 1.1x Ciena Corporation United States 15.24 -17% 1,547.1 2,296.6 692.5 1,442.0 1,833.9 61.6 3.4% 5.3% 1.3x Cisco Systems, Inc. United States 20.86 -4% 111,198.3 81,123.3 46,376.0 16,291.0 47,252.0 13,356.0 28.3% 5.4% 1.7x Clearfield, Inc . United States 5.53 -5% 71.0 54.8 16.1 - 38.6 4.6 11.9% 3.9% 1.4x ClearOne, Inc. United States 6.57 -7% 60.4 4.9 55.5 - 46.4 5.6 12.0% 0.8% 0.1x COM DEV International Ltd. Canada 3.52 -5% 268.6 270.4 25.8 20.3 208.4 29.8 14.3% 2.2% 1.3x Communications Systems Inc. United States 10.71 -26% 90.8 63.1 29.3 1.7 103.8 5.0 4.8% -30.1% 0.6x Corning Inc. United States 12.61 -14% 18,567.0 15,969.0 6,144.0 3,499.0 8,012.0 2,487.0 31.0% 1.5% 2.0x CTX Virtual Technologies, Inc . United States 1.61 -15% 12.8 12.8 0.1 - 40.0 (0.5) NM 16.6% 0.3x DDS Wireless International Inc . Canada 1.75 -16% 24.2 17.9 6.6 - 41.8 3.5 8.3% -11.5% 0.4x Dialogic , Inc . United States 2.09 -74% 33.2 105.4 2.7 74.9 172.1 (9.3) NM -15.5% 0.6x Digi International Inc. United States 9.86 -14% 257.9 156.4 101.5 - 190.9 20.5 10.7% -5.7% 0.8x DragonWave Inc . Canada 2.43 -44% 92.5 75.8 36.4 19.1 104.7 (47.8) NM 102.9% 0.7x EchoStar Corp. United States 37.84 -5% 3,322.3 4,272.6 1,547.6 2,488.5 3,121.7 590.0 18.9% 13.0% 1.4x Emulex Corporation United States 6.45 -40% 584.4 373.2 211.2 - 496.1 82.7 16.7% 2.8% 0.8x Ericsson Sweden 12.18 -2% 39,123.2 31,915.7 11,780.8 4,402.7 34,982.1 4,039.3 11.5% 0.4% 0.9x Extreme Networks Inc. United States 3.51 -21% 328.5 203.6 125.0 - 312.7 17.8 5.7% -4.4% 0.7x F5 Ne twor ks, Inc. UitdUnited SttStates 94. 43 -32% 7, 421. 3 6, 903. 6 517. 7 - 1, 420. 3 474. 8 33. 4% 17. 8% 494.9x Finisar Corp. United States 14.65 -29% 1,360.3 1,146.3 262.4 40.0 935.4 73.8 7.9% -3.5% 1.2x F le e t ma t ic s Gro up Limit e d Ireland 23.75 -13% 821.4 745.4 100.1 24.1 127.5 24.9 19.6% 38.1% 5.8x Franklin Wireless Corp. United States 1.46 -41% 15.1 3.8 11.9 0.1 36.6 1.0 2.7% 78.6% 0.1x Harmonic Inc . United States 5.69 -5% 658.8 457.6 201.2 - 530.5 35.1 6.6% -3.4% 0.9x Harris Corporation United States 48.07 -8% 5,424.7 7,029.7 328.2 1,929.9 5,353.4 1,120.6 20.9% 2.5% 1.3x Huawei Technology Co., Ltd. China 1.56 -29% 219.4 141.2 78.4 - 72.0 8.9 12.3% -6.7% 2.0x Infoblox Inc . United States 21.09 -13% 1,021.9 842.0 179.8 - 192.4 (3.4) NM 26.7% 4.4x Interactive Intelligenc e Group * United States 41.61 -2% 804.3 735.4 68.9 - 237.4 10.8 4.6% 13.3% 3.1x JDS Uniphase Corporation United States 14.16 -9% 3,328.9 2,860.2 709.3 240.6 1,707.3 170.2 10.0% -2.5% 1.7x Juniper Networks, Inc. United States 20.68 -10% 10,535.0 8,685.4 2,849.3 999.2 4,365.4 543.9 12.5% -1.9% 2.0x KVH Industries Inc . United States 13.32 -11% 198.0 170.3 38.3 10.6 137.1 11.1 8.1% 21.8% 1.2x Meru Networks, Inc. United States 4.47 -11% 95.9 82.8 22.9 9.7 97.5 (24.5) NM 7.8% 0.8x
M&A & INVESTMENT SUMMARY FEBRUARY 2013 35 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Mitel Networks Corporation Canada 3.78 -26% 202.9 417.0 100.6 314.7 583.6 81.6 14.0% -3.8% 0.7x 5.1x Netgear Inc . United States 34.05 -17% 1,308.9 932.0 376.9 - 1,271.9 143.9 11.3% 7.7% 0.7x 6.5x Nuance Communications, Inc. United States 18.41 -33% 5,821.0 7,199.6 961.1 2,335.0 1,753.1 379.4 21.6% 27.4% 4.1x 19.0x Numerex Corp. United States 12.29 -11% 220.3 218.3 6.8 4.8 63.7 5.1 8.0% 9.6% 3.4x 42.9x Optical Cable Corp. United States 4.04 -22% 25.4 33.3 0.6 9.1 83.5 6.6 7.9% 13.9% 0.4x 5.0x Palo Alto Networks, Inc. * United States 61.13 -16% 4,184.3 3,862.8 321.6 - 284.0 0.9 0.3% 86.7% 13.6x NM PCTEL, Inc. United States 6.92 -11% 121.6 73.8 47.8 0.0 83.0 4.9 5.9% 10.1% 0.9x 15.2x PHAZAR CORP United States 1.40 -51% 3.3 2.6 0.6 - 5.8 (1.5) NM -20.3% 0.5x NM Plantronics, Inc. United States 40.36 -5% 1,719.3 1,410.4 328.9 20.0 735.6 147.6 20.1% 3.8% 1.9x 9.6x Polycom, Inc. United States 9.12 -56% 1,614.3 940.1 674.3 - 1,392.6 124.4 8.9% -0.7% 0.7x 7.6x Procera Networks, Inc. United States 11.70 -55% 226.6 94.9 131.7 - 59.6 6.1 10.2% 34.3% 1.6x 15.6x RadiSys Corporat ion United States 4.19 -47% 118.8 121.8 31.8 34.9 296.3 10.7 3.6% -6.9% 0.4x 11.4x Radware Ltd. Israel 36.40 -11% 808.4 720.2 88.2 - 189.2 41.2 21.8% 13.3% 3.8x 17.5x RELM Wireless Corp. United States 2.17 -6% 29.4 23.2 6.2 0.0 27.6 3.0 10.9% 16.1% 0.8x 7.7x Riverbed Technology, Inc. United States 15.28 -48% 2,495.4 2,616.4 451.1 572.1 836.9 134.5 16.1% 15.2% 3.1x 19.5x Sandvine Corporation Canada 1.83 -14% 253.3 191.6 70.0 6.2 87.9 (0.6) NM -2.7% 2.2x NM ShoreTel, Inc. United States 4.06 -30% 238.5 208.4 52.1 22.0 284.4 (12.4) NM 29.3% 0.7x NM Sierra Wireless Inc . Canada 11. 28 -4% 345. 1 287. 4 59. 5 - 397. 3 11. 0 28%2.8% -31. 3% 07x0.7x 26. 2x SolarWinds, Inc. * United States 56.46 -7% 4,232.6 4,003.7 229.0 - 269.0 132.5 49.2% 35.6% 14.9x 30.2x Solera Holdings Inc. United States 56.30 -1% 3,878.4 4,681.0 448.2 1,152.6 801.3 338.8 42.3% 6.6% 5.8x 13.8x Sonus Networks, Inc. United States 2.45 -18% 687.8 441.1 249.9 3.1 254.1 (19.7) NM -2.1% 1.7x NM Sycamore Networks Inc. United States 2.29 -88% 66.1 (79.4) 145.5 - 54.0 (13.5) NM 3.1% NM 5.9x S y mme t ric o m Inc . United States 4.94 -30% 199.2 128.5 70.8 - 228.6 13.4 5.9% 0.9% 0.6x 9.6x Telcoware Co Ltd South Korea 9.10 -13% 64.1 11.5 - - 51.6 6.9 13.4% 0.0% 0.2x 1.7x TeleCommunication Systems United States 2.31 -20% 133.9 250.0 51.5 167.6 487.4 38.6 7.9% 14.6% 0.5x 6.5x Tellabs Inc. United States 2.03 -50% 723.1 118.7 799.5 195.1 1,052.6 12.3 1.2% -18.1% 0.1x 9.6x TESSCO Technologies Inc. United States 22.77 -14% 183.5 183.7 2.6 2.8 788.9 33.5 4.2% 17.9% 0.2x 5.5x Transmode Holding AB Sweden 12.69 -6% 352.6 294.1 57.9 - 155.3 30.7 19.7% 10.3% 1.9x 9.6x Ubiquitous Corporation * Japan 920.26 -9% 78.4 64.8 14.5 - 10.4 1.2 11.7% -11.6% 6.2x 53.0x Vecima Networks Inc. Canada 5.30 -1% 118.3 81.9 41.5 4.0 103.4 12.2 11.8% 29.8% 0.8x 6.7x Verint Systems Inc. United States 34.17 -3% 2,343.2 3,035.9 192.0 592.6 822.6 147.1 17.9% 8.6% 3.7x 20.6x ViaSat Inc. United States 46.96 -8% 2,092.0 2,570.2 112.7 586.4 1,051.6 126.3 12.0% 25.3% 2.4x 20.4x Vonage Holdings Corporation United States 2.64 -7% 565.2 526.2 97.1 58.1 849.1 123.2 14.5% -2.4% 0.6x 4.3x Westell Technologies, Inc. United States 1.82 -27% 107.2 (7.8) 115.0 - 40.7 (8.2) NM -57.9% NM 1.0x ZTE Corp. * China 1.57 -46% 5,484.3 8,999.6 2,413.8 5,634.8 14,179.0 119.0 0.8% 9.1% 0.6x 75.6x
Adjust ed W ei ght ed Av er age 26x2.6x 14. 9x
*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 (45.3x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 36 INFORMATION & BUSINESS SERVICES Transactions by Subsegment and Buyer Type
• IT Consulting/Systems Integration was the most active subsegment in the Information and Business Services segment, with 11 deals announced for $136 million in reported value • Select acquisitions › CVC Capital Partners’ $320 million acquisition of Philippines and U.S.-based SPi Global, a company offering voice and non-voice business process outsourcing, and customer relationship management services › TrueBlue’s $48 million acquisition of MDT Personnel, a temporary staffing firm with 105 branches and 15 on- site locations across 25 states › Soangroup.com’s $30 million acquisition of Monster Worldwide’s ChinaHR.com, which operates a jobs listing website • Select investments › The $103 million investment in Lynda.com, which offers online computer skills training for consumers, businesses, and schools, from Accel Partners, Spectrum Equity, and Meritech Capital Partners
INFORMATION & BUSINESS SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM IT Consulting/Systems Integration 11 42% 136.4 16% 7 119.8 0 - 4 16.6 Staffing 3 12% 48.0 6% 3 48.0 0 - 0 - HR Information 3 12% 39.0 5% 1 30.0 0 - 2 9.0 Corporate Training 2 8% 3.5 0% 1 - 0 - 1 3.5 Contact Center 1 4% - 0% 1 - 0 - 0 - Healthcare Consulting 1 4% - 0% 0 - 0 - 1 - Management Consulting 1 4% - 0% 1 - 0 - 0 - BPO 1 4% 320.0 38% 0 - 1 320.0 0 - Marketing Data 1 4% 250.5 30% 0 - 1 250.5 0 - Financial Information 1 4% 22.5 3% 1 22.5 0 - 0 - Market Research 1 4% 15.0 2% 0 - 0 - 1 15.0 Total 26 100% 834.9 100% 15 220.3 2 570.5 9 44.1
M&A & INVESTMENT SUMMARY FEBRUARY 2013 37 INFORMATION PUBLIC COMPANY VALUATIONS
($ 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Broadridge Financial Solutions, Inc. United States 22.95 -7% 2,796.6 3,061.9 259.1 524.4 2,336.3 351.9 15.1% 3.4% 1.3x 8.7x Co mput e rs ha re Limit e d Australia 10.42 -2% 5,790.7 7,119.1 446.2 1,781.7 2,016.2 355.4 17.6% 24.6% 3.5x 20.0x CoreLogic, Inc. United States 25.91 -12% 2,535.4 3,165.0 171.0 798.9 1,567.6 325.3 20.7% 17.1% 2.0x 9.7x CoStar Group Inc. * United States 100.74 -1% 2,846.9 2,861.5 156.1 170.6 349.9 56.8 16.2% 39.0% 8.2x 50.3x DST Syst ems Inc . United States 67.92 -2% 3,002.1 3,672.5 431.1 1,101.5 2,576.6 399.1 15.5% 7.9% 1.4x 9.2x Dun & Bradstreet Corp. United States 80.60 -7% 3,294.4 4,185.4 137.0 1,024.1 1,663.0 541.4 32.6% -5.4% 2.5x 7.7x Envestnet, Inc. * United States 15.34 0% 496.1 466.1 30.0 - 157.3 15.3 9.7% 27.7% 3.0x 30.6x Equifax Inc. United States 55. 12 -8% 6, 639. 3 8, 249. 2 146. 8 1, 730. 7 2, 160. 5 652. 4 30. 2% 10. 2% 38x3.8x 12. 6x Experian plc Ireland 16.60 -1% 16,391.5 18,510.6 627.0 2,740.0 4,621.0 1,533.0 33.2% 14.4% 4.0x 12.1x FactSet Research Systems Inc. United States 97.29 -11% 4,299.1 4,073.9 225.2 - 820.4 311.6 38.0% 9.4% 5.0x 13.1x Fair Isaac Corporation United States 44.34 -7% 1,573.8 1,987.0 90.8 504.0 696.1 191.7 27.5% 9.8% 2.9x 10.4x Fidelity National Information Services, Inc. United States 37.65 -1% 11,087.5 15,108.1 517.6 4,385.5 5,807.6 1,736.7 29.9% 1.1% 2.6x 8.7x Financial Engines, Inc. * United States 32.68 -7% 1,570.9 1,389.6 181.2 - 185.8 32.5 17.5% 29.0% 7.5x 42.7x Lender Processing Services, Inc. United States 24.56 -20% 2,085.5 2,924.5 236.2 1,075.3 1,997.7 330.9 16.6% 0.7% 1.5x 8.8x Moody's Corp. United States 48.06 -14% 10,704.6 10,686.2 1,773.3 1,671.2 2,730.3 1,183.1 43.3% 19.7% 3.9x 9.0x Morningstar Inc. United States 68.58 -3% 3,189.0 2,867.6 321.4 - 658.3 193.8 29.4% 4.3% 4.4x 14.8x MSCI Inc. United States 33.13 -13% 4,045.0 4,476.2 434.3 865.5 950.1 434.6 45.7% 5.5% 4.7x 10.3x Reis, Inc . United States 15.25 -8% 163.2 148.3 15.0 - 29.6 5.8 19.4% 12.4% 5.0x 25.8x SEI Investments Co. United States 28.27 -1% 4,880.6 4,447.5 452.2 - 992.5 234.8 23.7% 6.8% 4.5x 18.9x The Dolan Company United States 2.91 -70% 88.3 263.4 15.6 192.0 275.8 42.5 15.4% 0.9% 1.0x 6.2x The McGraw-Hill Companies, Inc. United States 46.55 -21% 13,071.2 14,376.2 761.0 1,256.0 4,450.0 1,578.0 35.5% -28.8% 3.2x 9.1x Thomson Reuters Corporation United States 30.64 0% 25,350.0 31,406.2 1,373.0 7,268.0 13,278.0 2,816.0 21.2% -3.8% 2.4x 11.2x Verisk Analytics, Inc. United States 58.47 -3% 9,831.2 11,198.0 94.7 1,461.4 1,534.3 695.8 45.3% 15.2% 7.3x 16.1x
Adjusted Weighted Average 3.6x 11.7x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (27.3x)
Healthcare Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Nat ional Researc h Corp. United States 56.88 -8% 391.1 395.2 8.3 12.4 86.4 27.5 31.9% 14.1% 4.6x 14.4x The Advisory Board Company United States 50.81 -8% 1,783.9 1,685.3 98.5 - 431.6 65.8 15.2% 26.8% 3.9x 25.6x
Adjusted Weighted Average 4.0x 23.6x
*Calc ulation is market c ap 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 (31.4x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 38 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 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States 18.20 -4% 1,343.7 1,418.8 186.2 261.6 1,109.5 223.4 20.1% -1.9% 1.3x 6.3x Allianc e Data Systems Corporation United States 158.69 -1% 7,914.5 16,235.3 893.4 9,214.2 3,641.4 1,141.2 31.3% 14.8% 4.5x 14.2x Arbitron Inc. United States 46.84 -1% 1,250.1 1,183.6 66.5 - 449.9 124.8 27.7% 6.5% 2.6x 9.5x Brainjuic er Group Plc United Kingdom 3.47 -37% 43.6 40.0 3.8 - 34.5 4.8 14.0% 20.6% 1.2x 8.3x Cello Group Plc United Kingdom 0.65 -8% 53.5 74.3 1.9 23.4 212.2 12.5 5.9% 8.1% 0.4x 6.0x Cision AB Sweden 9.16 -4% 135.9 190.3 8.6 62.4 151.4 29.3 19.4% 1.7% 1.3x 6.5x comScore, Inc. * United States 15.94 -33% 569.5 522.2 61.8 14.5 255.2 19.0 7.4% 9.8% 2.0x 27.5x Cross Marketing Inc . Japan 12. 32 -20% 73. 0 64. 2 11. 1 1. 5 63. 0 8. 6 13. 6% 23. 1% 10x1.0x 75x7.5x Ebiquity plc United Kingdom 1.45 -4% 81.0 104.1 7.0 30.7 95.7 15.1 15.8% 24.6% 1.1x 6.9x GfK SE Germany 55.94 -4% 2,041.9 2,628.4 87.9 608.6 1,890.7 253.5 13.4% 8.2% 1.4x 10.4x Harris Interac tive Inc . United States 1.65 -4% 95.3 87.9 11.1 3.7 140.7 11.0 7.8% -11.0% 0.6x 8.0x Hart e- Hanks Inc . United States 7.27 -26% 456.4 533.9 35.8 113.3 767.7 88.9 11.6% -9.8% 0.7x 6.0x InnerWorkings Inc . United States 14.77 -3% 737.6 785.4 17.2 65.0 797.7 41.8 5.2% 25.9% 1.0x 18.8x INTAGE Inc . Japan 24.98 -12% 251.2 243.2 59.9 50.3 449.5 56.6 12.6% 6.1% 0.5x 4.3x Ipsos SA France 39.30 -9% 1,780.5 2,621.9 174.4 1,006.9 2,359.4 267.1 11.3% 31.3% 1.1x 9.8x Keynote Systems, Inc. United States 15.28 -25% 279.2 227.9 51.2 - 125.2 16.4 13.1% 12.5% 1.8x 13.9x Macromill, Inc. Japan 10.99 -10% 306.2 269.8 103.2 60.6 182.5 45.2 24.8% 24.0% 1.5x 6.0x NeuSt ar, Inc. United States 43.85 -7% 2,906.9 3,150.3 343.9 587.3 831.4 369.2 44.4% 34.0% 3.8x 8.5x Nielsen Holdings N.V. Netherlands 33.69 -1% 12,576.3 18,942.3 288.0 6,606.0 5,612.0 1,556.0 27.7% 1.4% 3.4x 12.2x Onvia Inc. United States 3.73 -12% 31.8 19.5 12.3 - 22.0 2.8 12.6% -5.2% 0.9x 7.1x Solera Holdings Inc . * United States 56.30 -1% 3,878.4 4,681.0 448.2 1,152.6 801.3 338.8 42.3% 6.6% 5.8x 13.8x YouGov PLC United Kingdom 1.12 -9% 106.9 96.2 11.7 0.5 91.2 7.9 8.6% 3.6% 1.1x 12.2x
Adjusted Weighted Average 3.1x 11.7x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.5x)
Other Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Corporate Executive Board Co. United States 54.14 -2% 1,817.0 2,285.1 72.7 540.8 622.7 147.1 23.6% 28.5% 3.7x 15.5x Forrester Research Inc . United States 27.46 -24% 612.2 383.6 228.7 - 292.9 43.1 14.7% 3.3% 1.3x 8.9x Gartner Inc . United States 49.76 -7% 4,645.9 4,561.1 299.9 215.0 1,615.8 270.5 16.7% 10.0% 2.8x 16.9x IHS Inc. United States 106.25 -11% 6,987.3 7,706.9 345.0 1,064.6 1,529.9 346.5 22.6% 15.4% 5.0x 22.2x Informa plc Switzerland 7.61 0% 4,573.5 5,790.9 38.8 1,343.0 2,003.3 581.4 29.0% -3.4% 2.9x 10.0x NIC Inc . United States 17.72 -2% 1,146.9 1,084.6 62.4 - 211.1 49.7 23.5% 16.7% 5.1x 21.8x Proofpoint, Inc. United States 13.98 -21% 462.0 379.2 86.8 4.0 106.3 (12.0) NM 29.9% 3.6x NM Reed Elsevier plc United Kingdom 10.76 -1% 23,672.5 28,753.2 2,673.1 2,407.7 9,635.3 2,209.0 22.9% 2.3% 3.0x 13.0x SPS Commerce, Inc. * United States 37.39 -10% 553.9 487.8 66.1 - 77.1 6.5 8.4% 33.0% 6.3x 75.2x Wolters Kluwer NV Netherlands 19.97 -3% 5,896.3 8,646.7 380.3 3,263.0 4,403.9 1,092.7 24.8% 4.6% 2.0x 7.9x
Adjusted Weighted Average 3.2x 14.0x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.6x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 39 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
HR Services Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Automatic Data Processing, Inc. United States 61.36 -1% 29,760.6 28,368.5 1,421.4 29.3 10,507.0 1,908.2 18.2% 10.1% 2.7x 14.9x Barrett Business Services Inc . United States 43.68 -6% 306.3 253.8 62.5 10.0 402.7 20.7 5.1% 27.9% 0.6x 12.3x Capita PLC United Kingdom 12.49 -4% 8,143.3 10,166.1 533.0 2,700.0 5,447.9 827.5 15.2% 14.4% 1.9x 12.3x Dic e Holdings, Inc . United States 9.64 -12% 564.8 568.6 42.2 46.0 195.4 71.3 36.5% 9.1% 2.9x 8.0x Edenred SA France 34.67 0% 7,824.0 7,754.6 1,931.6 1,830.0 1,286.8 408.7 31.8% 3.8% 6.0x 19.0x Insperity, Inc . United States 28.35 -17% 728.0 446.6 281.4 - 2,158.8 87.1 4.0% 9.2% 0.2x 5.1x LinkedIn Corporation * United States 168.18 -2% 18,340.6 17,591.1 749.5 - 972.3 125.5 12.9% 86.2% 18.1x 140.2x Marsh & McLennan Companies, Inc . United States 37. 14 0% 20, 366. 6 20, 983. 6 2, 301. 0 2, 918. 0 11, 924. 0 2, 167. 7 18. 2% 35%3.5% 18x1.8x 97x9.7x Monster Worldwide, Inc . United States 5.12 -51% 569.0 585.0 148.2 164.2 890.4 142.5 16.0% -10.4% 0.7x 4.1x Paychex, Inc. United States 33.11 -5% 12,040.8 11,739.6 301.2 - 2,268.6 972.1 42.9% 4.9% 5.2x 12.1x Towers Watson & Co. United States 66.57 -2% 4,928.8 5,021.2 455.7 525.0 3,508.2 663.1 18.9% 3.0% 1.4x 7.6x WageWorks, Inc. United States 23.61 -5% 759.7 499.0 305.1 44.4 177.3 40.0 22.5% 30.7% 2.8x 12.5x
Adjusted Weighted Average 2.9x 12.7x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.8x)
Sta ffing & Recru iting Serv ices Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adecco S.A. Switzerland 57.27 -1% 10,815.3 12,245.1 1,166.1 2,580.1 26,588.3 1,153.3 4.3% 1.8% 0.5x 10.6x AMN Healthcare Servic es Inc. United States 14.10 -2% 645.6 798.8 5.7 158.9 954.0 67.5 7.1% 7.5% 0.8x 11.8x Brunel Int ernat ional NV Netherlands 50.07 -6% 1,210.0 1,123.9 83.7 - 1,431.2 99.6 7.0% 35.9% 0.8x 11.3x CDI Corp. United States 16.46 -12% 318.3 307.1 - - 1,105.0 42.4 3.8% 4.3% 0.3x 7.2x Cross Country Healthcare, Inc. United States 5.69 -5% 175.8 202.8 7.5 34.5 506.8 10.3 2.0% 2.8% 0.4x 19.7x CTPartners Exec utive Searc h Inc . United States 3.95 -44% 27.6 18.3 14.9 5.6 125.3 (2.3) NM 3.1% 0.1x NM Groupe CRIT SA France 20.15 -13% 223.8 266.2 95.8 120.3 1,938.3 67.6 3.5% 7.3% 0.1x 3.9x Harvey Nash Group plc United Kingdom 1.06 -4% 77.9 99.5 15.4 37.5 897.1 18.6 21%2.1% 19. 9% 01x0.1x 54x5.4x Hays plc United Kingdom 1.49 0% 2,082.9 2,303.5 97.2 333.5 5,726.3 222.8 3.9% -0.6% 0.4x 10.3x Healthcare Locums Plc * United Kingdom 0.01 -88% 6.2 55.7 15.1 66.2 331.6 1.9 0.6% 7.4% 0.2x 29.6x Heidrick & Struggles International Inc. United States 13.60 -39% 244.4 126.8 117.6 - 443.8 31.3 7.0% -15.9% 0.3x 4.1x Hudson Global, Inc United States 3.68 -38% 117.7 79.0 38.7 - 777.6 7.5 1.0% -16.7% 0.1x 10.5x Impellam Group PLC United Kingdom 6.05 -1% 268.2 242.7 61.1 33.9 1,955.9 32.0 1.6% 7.0% 0.1x 7.6x Kelly Servic es, Inc . United States 17.66 -2% 651.5 639.3 76.3 64.1 5,450.5 96.8 1.8% -1.8% 0.1x 6.6x Kforce Inc. United States 14.54 -12% 501.8 522.6 1.4 22.1 1,082.5 25.6 2.4% 7.7% 0.5x 20.4x Korn/Ferry International United States 18.51 -4% 899.6 676.4 223.2 - 767.0 84.8 11.1% -2.9% 0.9x 8.0x ManpowerGroup Inc. United States 54.60 -4% 4,196.7 4,318.7 648.1 770.1 20,678.0 571.0 2.8% -6.0% 0.2x 7.6x Mic hael Page International plc United Kingdom 6.51 -14% 1,982.3 1,933.1 90.1 39.3 1,599.3 137.3 8.6% 8.4% 1.2x 14.1x On Assignment Inc. United States 21.86 -13% 1,148.1 1,573.8 13.9 439.6 1,239.7 107.4 8.7% 107.6% 1.3x 14.7x Proffice AB (Publ) Sweden 3.80 -11% 259.5 285.8 14.4 40.2 748.9 13.2 1.8% 2.2% 0.4x 21.6x Randst ad Holding NV Netherlands 42.61 -1% 7,332.1 8,763.4 255.0 1,697.1 22,528.6 677.4 3.0% 5.3% 0.4x 12.9x Resources Connection Inc. United States 12.21 -16% 500.7 386.7 113.9 - 566.9 50.9 9.0% 0.1% 0.7x 7.6x Robert Half International Inc. United States 35.55 -4% 4,961.0 4,674.9 287.6 1.5 4,111.2 410.8 10.0% 8.8% 1.1x 11.4x Robert Walt ers plc United Kingdom 3.22 -19% 247.1 229.7 42.3 23.6 922.8 20.0 2.2% 7.5% 0.2x 11.5x SThree Plc. United Kingdom 5.39 0% 644.7 601.7 45.3 - 925.6 51.2 5.5% 6.5% 0.7x 11.8x Synergie SA France 11.46 -6% 274.7 312.7 29.7 64.9 1,858.8 60.7 3.3% 6.8% 0.2x 5.2x TrueBlue, Inc. United States 19.39 -2% 752.0 622.6 129.5 0.1 1,389.5 71.9 5.2% 5.6% 0.4x 8.7x USG People NV Netherlands 8.05 -29% 641.5 1,008.6 52.4 412.1 3,810.2 148.8 3.9% -9.7% 0.3x 6.8x
Adjusted Weighted Average 0.6x 11.1x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (23.0x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 40 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
IT C onsulting/Systems Integration Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 02/28/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A.L.D. Advanced Logistics Developments Ltd. * Israel 0.21 -17% 4.8 5.2 - - 14.3 0.1 0.9% -5.2% 0.4x 40.7x Accenture plc Ireland 74.36 -2% 47,912.7 42,718.8 5,681.2 0.0 28,007.8 4,266.1 15.2% 5.5% 1.5x 10.0x Amdocs Limited Channel Islands 36.47 -1% 5,900.0 4,938.6 961.3 - 3,266.3 604.4 18.5% 1.8% 1.5x 8.2x Bec ht le AG Germany 48.98 0% 1,028.5 1,041.6 69.2 82.0 2,657.1 125.5 4.7% 4.7% 0.4x 8.3x Booz Allen Hamilton Holding Corporation United States 12.80 -33% 1,770.7 3,179.5 317.6 1,726.4 5,753.4 524.0 9.1% -1.0% 0.6x 6.1x Broadridge Financial Solutions, Inc. United States 22.95 -7% 2,796.6 3,061.9 259.1 524.4 2,336.3 351.9 15.1% 3.4% 1.3x 8.7x Business & Decision SA France 4.29 -46% 33.8 73.5 7.3 44.9 304.0 16.5 5.4% -2.0% 0.2x 4.5x Cap Gemini S. A. France 49. 32 -1% 7, 483. 4 7, 589. 4 1, 660. 6 1, 713. 9 12, 787. 0 1, 158. 6 91%9.1% 91%9.1% 06x0.6x 66x6.6x CGI Group, Inc. Canada 26.50 -4% 8,136.2 11,033.8 162.1 3,151.5 6,293.7 878.0 14.0% 50.7% 1.8x 12.6x Cognizant Tec hnology Solutions Corporation United States 76.77 -3% 23,167.8 20,304.0 2,863.8 - 7,346.5 1,518.1 20.7% 20.0% 2.8x 13.4x Computer Sc ienc es Corporation United States 48.03 -3% 7,371.8 7,817.8 2,203.0 2,629.0 15,784.0 1,830.0 11.6% 0.3% 0.5x 4.3x CSG Systems International Inc. United States 19.41 -17% 615.2 720.6 169.3 274.7 756.9 162.8 21.5% 3.0% 1.0x 4.4x Dynamics Research Corporation United States 5.91 -41% 61.1 157.7 0.0 89.1 317.0 29.0 9.2% -1.7% 0.5x 5.4x Information Servic es Group, Inc . United States 1.34 -10% 48.5 98.3 15.0 64.8 187.8 18.5 9.9% 9.6% 0.5x 5.3x Infosys Ltd. India 53.44 -1% 30,537.9 26,421.3 4,079.0 - 7,231.0 2,183.0 30.2% 5.9% 3.7x 12.1x iSoftStone Holdings Limited China 4.99 -52% 278.3 245.9 72.5 38.0 362.8 37.6 10.4% 39.9% 0.7x 6.5x ITS Group France 5.74 -26% 33.3 48.7 5.8 19.5 119.0 10.4 8.8% 6.1% 0.4x 4.7x NCI, Inc. United States 5.03 -37% 65.5 82.3 0.8 17.5 368.4 17.6 4.8% -34.0% 0.2x 4.7x Osiatis SA France 8.33 -3% 127.5 132.5 36.2 40.7 366.1 31.0 8.5% 10.8% 0.4x 4.3x Wipro Ltd. India 7.66 -7% 18,750.9 16,867.5 3,036.2 1,148.7 7,608.2 1,484.2 19.5% 17.5% 2.2x 11.4x
Adjusted Weighted Average 1.7x 10.6x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.0x)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 Company Name Headquarters 02/28/13 52WK High Value Value Inv estments Debt Revenue EBITDA EBITDA Re v Growth EV/Rev EV/EBITDA Communisis plc United Kingdom 0.76 -5% 106.3 148.1 15.8 59.0 349.8 28.3 8.1% 15.7% 0.4x 5.2x Contax Participacoes S.A. Brazil 13.17 -9% 850.9 1,231.0 186.5 544.8 1,709.7 199.9 11.7% 22.2% 0.7x 6.2x Eniro AB Sweden 2.00 -24% 200.6 630.1 30.4 455.5 614.2 149.9 24.4% -7.5% 1.0x 4.2x Exlservic e Holdings, Inc . United States 30.27 -6% 973.1 852.6 109.2 4.4 442.9 82.2 18.6% 22.9% 1.9x 10.4x Firstsource Solutions Limited India 0.19 -31% 124.6 144.2 141.2 160.4 502.3 47.2 9.4% 27.1% 0.3x 3.1x Genpac t Lt d. Bermuda 17.61 -10% 3,970.7 4,242.2 477.5 745.7 1,902.0 343.7 18.1% 18.8% 2.2x 12.3x MAXIMUS, Inc. United States 72.78 -3% 2,480.8 2,315.3 167.1 1.7 1,096.8 163.2 14.9% 14.8% 2.1x 14.2x Salmat Ltd. Australia 2.70 -5% 427.2 678.5 38.3 289.5 843.3 102.8 12.2% -4.6% 0.8x 6.6x Serco Group plc United Kingdom 8.66 -5% 4,243.6 5,217.1 343.2 1,349.7 7,438.3 574.7 7.7% 7.0% 0.7x 9.1x Trans Cosmos, Inc. Japan 13.61 -1% 559.9 383.1 361.3 134.0 1,915.6 99.1 5.2% 5.1% 0.2x 3.9x Transcom WorldWide SA Luxembourg 0.13 -2% 159.4 210.2 56.2 106.5 798.4 20.3 2.5% 9.3% 0.3x 10.3x Xchanging PLC United Kingdom 2.16 -2% 519.5 436.8 189.2 64.4 1,086.2 120.6 11.1% 2.6% 0.4x 3.6x
Adjusted Weighted Average 1.4x 7.9x
*Calc ulation is market c ap 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 (18.8x)
M&A & INVESTMENT SUMMARY FEBRUARY 2013 41 FEBRUARY SUMMARY TRADING VALUATION INFORMATION
Revenue Multiples Segment Name MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 2.8x 1.6x 4.4x 4.0x Digital Advertising 3.5x 2.8x 4.6x 4.4x Marketing Tec hnology 3.9x 3.2x 3.8x 3.7x Agenc y/Consulting 0.9x 0.8x 1.3x 1.2x Marketing Servic es 1.0x 0.7x 1.8x 0.9x Traditional Media 2.2x 2.2x 2.8x 2.4x Technology 2.6x 1.7x 3.0x 2.8x Software 5.0x 3.5x 7.4x 4.5x Communic ations 2.1x 1.2x 3.7x 2.6x Information 3.0x 2.8x 3.5x 2.2x Business Services 12x1.2x 06x0.6x 29x2.9x 20x2.0x
EBITDA Multiples Segment Name MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 18.3x 10.6x 24.6x 14.0x Digital Advertising 16.4x 11.2x 14.1x 14.0x Marketing Tec hnology 27.7x 14.6x 19.9x 11.4x Agenc y/Consulting 7.6x 6.6x 8.9x 8.6x Marketing Servic es 13.0x 6.4x 9.4x 9.3x Traditional Media 11.2x 8.0x 9.6x 9.6x Technology 12.2x 9.0x 11.2x 10.2x Software 27.5x 14.3x 31.0x 14.6x Communic ations 18.6x 11.4x 23.6x 14.9x Information 14.7x 10.4x 13.3x 13.3x Business Services 11.2x 8.1x 18.6x 11.0x
As of close of business on 02/28/13
*Calc ulation is market c ap weighted and exc ludes 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 FEBRUARY 2013 42 PPLLC INDICES – LTM as of 2/28/13
Digital Media/Commerce Index Performance Agency Index Performance 120 130 • S&P 500 – 10.2% • S&P 500 – 10.2 %
120 110 • Digital Media/ • Agency/Consulting – 15.2% Commerce – 8.7%
110
100
100
90 90 Index Performance (%) Performance Index Index Performance (%) Performance Index
80 80 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13
S&P 500 Digital Media/Commerce S&P 500 Agency
Digital Advertising Index Performance Marketing Services Index Performance 130 130 • S&P 500 – 10.2 % • S&P 500 – 10.2 % ) )
%% 120 %% • Digital Advertising – 18.9% 120 • Marketing Services – 16.8%
110 110
100 100
90
Index Performance ( Performance Index ( Performance Index 90
80 80 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13
S&P 500 Digital Advertising S&P 500 Marketing Services
Marketing Technology Traditional Media Index Performance Index Performance 120 140 • S&P 500 – 10.2 % • S&P 500 – 10.2 % )
) 130 110 %% • Marketing %% • OOH & Specialty Media – 27.5% Technology – 0.8% 120
100
110
90 100
90
80 ( Performance Index Index Performance ( Performance Index
80 70 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13
S&P 500 Marketing Technology S&P 500 Traditional Media
M&A & INVESTMENT SUMMARY FEBRUARY 2013 43 PPLLC INDICES – LTM as of 2/28/13
Software Communications Index Performance Index Performance 130 130 • S&P 500 – 10.2 % • S&P 500 – 10.2 % 120 120 • Software – 13.5% • Communications – 0.5%
110 110
100
100 90
90
Index Performance (%) Performance Index 80 Index Performance (%) Performance Index
80 70 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13
S&P 500 Software S&P 500 Communications
Technology Index Performance Information & Business Services 130 Index Performance 130 • S&P 500 – 10.2 % ) • S&P 500 – 10.2 %
%% 120 • Technology – 0.2% 120 • Information – 15.3%
110 110 • Business Services – 11.4%
100 100
90 Index Performance ( Performance Index 90 Index Performance (%) Performance Index
80 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 80 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 S&P 500 Tech nolog y S&P 500 Information Business Services
M&A & INVESTMENT SUMMARY FEBRUARY 2013 44 ALL SEGMENTS Strategic Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value Strategic Values Disclosed Acme Packet, Inc Oracle Corporation $1,645.6 Hollywood America Cinemas Regal Entertainment Group 283.0 Channel Intelligence, Inc. Google, Inc. 125.0 FFastFill ION Trading 112. 4 Online Resources Corporation ACI Worldwide, Inc. 110.2 Angel.com Incorporated Genesys International 110.0 Sage Software, non-CRM assets Swiftpage 101.2 Northgate Managed Services Capita Group plc 100.8 Atlas Advertiser Suite Facebook 100.0 Bluefin Labs, Inc. Twitter, Inc. 100.0 Cox Media Group, Southern Connecticut Radio Stations Sinclair Broadcast Group, Inc. 94.7 Beatport SFX Entertainement, Inc. 50.0 Skyfire Labs, Inc. Opera Software ASA 50.0 MDT Personnel True Blue, Inc. 48.0 CapitalStream Linedata Services S.A. 45.0 LBM Holdings Ltd. Stream Global Services, Inc. 40.8 ChinaHR.com Saongroup.com 30.0 Investor Economics Asset International, Inc. 22.5 Metaresolver Millennial Media, Inc. 20.0 Windeln.de DN Capital 19.6 MdotM.dot Go Daddy Software, Inc. 15. 0 I-Design Cardtronics, Inc. 12.0 Webscreen Systems Juniper Networks, Inc. 10.0 BowTie I-5 Publishing 10.0 Exait Atea Holding AB 7.4 AWIND Barco NV 7.1 CrowdSavings.com Half Off Depot, Inc. 6.4 Mnet Mobile IPG Mediabrands Australia 5.5 Altior, Inc. Exar Corporation 5.0 ClariDIS iMedicor 0.6 Strategic Undisclosed 100plus Practice Fusion - 360Fresh Advisory Board Company - 4Projects Viewpoint Construction Software, Inc. - ACS Systech Integrators Valores Corporativos Softtek S.A. de C.V. - Agile Poet Snakehead Software, LLC - Airtasker Pty. Ltd. TaskBox - Alike Yahoo!, Inc. -
M&A & INVESTMENT SUMMARY FEBRUARY 2013 45 ALL SEGMENTS Strategic Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value Strategic Undisclosed All the Sales Jack Media - Allpoint Systems Autodesk, Inc. - ANTs Data Server ANTs Software, Inc. - AnyDoc Software Hyland Software - appMobi, HTML5 Development Tools Division Intel Corporation - AVIDWireless Numerex Corp. - Broadtexter Tatango, Inc. - CareClarity, Inc. Cymetrix Corporation - Cezanne Software Lefebvre Software SA - Cloggs Limited JD Sports Fashion Plc. - Conversion Hub Marketing sgCarMart. com - Corporate Voice / Weber Shandwick Weber Shandwick Worldwide - Cox Media Group, Southern Connecticut Radio Stations Connoisseur Media, LLC - DailyLit Plympton - Dailymotion Orange SA - Debtdomain Ipreo LLC - Diagonal Consulting G3 Global - Digitas Inc. LBi International - DocVelocity Capsilon Corporation - eBook Architects Firebrand Technologies - eBUS Media Network IMD Plc - Echograph Vimeo, LLC - Engagio Influitive, Inc. - EntropySoft Salesforce.com - EPM Communications Business Valuation Resources, LLC - Financ ia l Serv ice Stan dar ds fi360, Inc. - First to File, Inc. CPA Global Limited - Flowdock Rally Software Development Corporation - gdgt AOL, Inc. - GoMiso Dijit Media, Inc. - Hewlett-Packard, webOS Software LG Electronics, Inc. - Heyride, Inc. SideCar Technologies, Inc. - HomeGain.com, Inc. Reply!, Inc. - IGN Entertainment, Inc. Ziff Davis, Inc. - InCompass Solutions The Jockey Club - Inkfruit Robemall Apparels Pvt. Limited -
M&A & INVESTMENT SUMMARY FEBRUARY 2013 46 ALL SEGMENTS Strategic Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value Strategic Undisclosed IoGo_net Agilisys Limited - JAWOOD Business Process Solutions Genpact Limited - Jigsee Vuclip - KadmusArts Festival Transaction Services, Inc. - Kip Solutions Post+Beam - KSEE24 Nexstar Broadcasting, Inc. - KSNB-TV Gray Television, Inc. - Label World WS Packaging Group, Inc. - LineRate Systems F5 Networks, Inc. - lonelybrand, LLC HY Connect Inc. - MashLogic Groupon, Inc.- MD Practice Software TELUS Health Solutions - Mind Technologies, Inc. VOIS, Inc. - MontaVista Software, Automotive Business Unit Mentor Graphics Corporation - Natural History New Zealand Fox Television Studios, Inc. - NetConstruct Ingenuity Digital Holdings - ObjectRocket Rackspace US - Opstera Software Avanade , Inc. - Oracle Enterprise Resource Planning KPMG LLP - Oregon Health Network OCHIN, Inc. - Parlophone Label Group Warner Music Group - Partners for Medical Education WCG Company - Pasona Tquila Salesforce.com - Perioperative Nurses Alliant Staffing - PlanSwift Textura Corporation - PiPreview NtkNetworks Aps Rig hts ter Ltd.- ProTec Games SHFL entertainment - Romanes Media Group Goldman Sachs Group and TPG Capital - Samplrs.com Fancy.com - Sazneo Limited Access UK Limited - Sepiida Delphic Digital, LLC - ShowUhow Sellpoint, Inc. - Silverpoint finalsite - SmartOps SAP AG - SNRLabs Seven Networks, Inc. - SocialLink Weber Shandwick Worldwide -
M&A & INVESTMENT SUMMARY FEBRUARY 2013 47 ALL SEGMENTS Strategic Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value Strategic Undisclosed Software Generation SWK Technologies, Inc. - SolStonePlus Red Stack Technology - SpeakerText, Inc. Sprout Technology International - Specialist Media Show The Software & Information Industry Association - Specialists Marketing Services, Inc. Take 5 Solutions LLC - SportsGrid.com RotoExperts LLC - Star Analytics, Inc. International Business Machines Corporation - Strangeloop Networks Radware Ltd. - Stratix Corp., Field Service Mobile Software ServicePower - Swaylo PeopleBrowsr - TaskBox Airtasker Pty. Ltd.- Taste Festivals IMG Arts and Entertainment - Tech:Touchstone The 451 Group - Thames & Kosmos Kosmos International GmbH - The Panther Group Parseq plc - The Tulsa World BH Media Group - Theory M INVISION, Inc. - Travora Media, Inc. Advanta ge Networks - TunedIn Media Axel Springer AG - Vietnam Online Network CareerBuilder, Inc. - Virsto Software VMware, Inc. - Visere & Massive Health Jawbone - Visiograph-Geomap Mensch und Maschine Software SE - Volt Media AlphaBird, Inc. - VOS Media Telegraph Media Group - Vue AltiAnalytics AlAnaplan, Inc. - Workshop Holding ManpowerGroup - Z57 Constellation HomeBuilder Systems -
M&A & INVESTMENT SUMMARY FEBRUARY 2013 48 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value Buyout Deals Values Disclosed SPi Global CVC Capital Partners Ltd. $320.0 UBM, Data Services business Electra Partners LLP 250.5 Buyout Deals Undisclosed eCompliance Management Solutions, Inc. High Park Capital Partners - Information Distribution & Marketing, Inc. Volaris Group, Inc. - Performance Assessment Network Spire Capital Partners, L.P. - TBA Global, LLC Management Buyout - West Academic Publishing Eureka Growth Capital - VC/Growth Capital Values Disclosed Beijjging Jin gdon g Centur y Tradin g Co. , Ltd. Kingggpydom Holding Company $400.0 AirWatch, LLC Insight Venture Partners 200.0 Pinterest Valiant Capital Management, L.P. 200.0 LivingSocial (Hungry Machine, Inc.) (Unnamed Fund Contibuters) 110.0 Mobilitie, LLC Shamrock Capital Advisors, Inc. 100.0 New Relic, Inc. Insight Venture Partners 80.0 Consumer United Spark Capital 52.5 Skyera, Inc. Dell Corporate Ventures 51.6 Mu Sigma MasterCard, Inc. 45.0 eBaoTech Corporation FTV Capital 36. 0 WhiteHat Security JMI Equity Fund 31.0 Hailo Union Square Ventures 30.6 DataXu, Inc. Atlas Venture 27.0 Linio Summit Partners LP 26.5 Ravello Systems, Inc. Sequoia Capital 26.0 Game Insight, LLC IMI.VC 25.0 Urban Airship, Inc. August Capital Management 25.0 Nexenta Syy,stems, Inc. The Four Rivers Group 24.0 Elasticsearch Index Ventures 24.0 Nextdoor.com, Inc. Greylock Management 21.6 Adara Media, Inc. QuestMark Partners 20.0 InVisage Technologies, Inc. GGV Capital 20.0 Sailthru, Inc. Benchmark Capital 19.0 Spredfast OpenView Venture Partners 18.0 Click Security, Inc. Lightspeed Venture Partners 17.7 Euclid, Inc. Benchmark Capital 17.3 Cylance, Inc. Fairhaven Capital 15. 0 Nok Nok Labs, Inc. Onset Ventures 15.0 RightScale, Inc. (Unnamed Fund Contibuters) 15.0 STELLAService, Inc. Norwest Venture Partners 15.0
M&A & INVESTMENT SUMMARY FEBRUARY 2013 49 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Livefyre, Inc. U.S. Venture Partners $15.0 Sprinklr Battery Ventures 15.0 Taboola Ltd. Pitango Venture Capital 15.0 Drawbridge, Inc. The Jockey Club 14. 0 Scodix Ltd. Lightspeed Venture Partners 14.0 Verve Mobile, Inc. Nokia Growth Partners 14.0 Snapchat, Inc. Benchmark Capital 13.5 Persado, Inc. Bain Capital, LLC 13.0 RepairPal, Inc. Cars.com 13.0 Gilat Satellite Networks Roumell Asset Management, LLC 11.8 Julep Beauty, Inc. Andreessen Horowitz 10.3 Xirrus, Inc. Auggpust Capital Mana gement 10.1 Zomato Media Info Edge (India) Limited 10.1 BTI Systems, Inc. Bain Capital, LLC 10.0 Infinio Systems, Inc. Highland Capital Partners 10.0 Fortumo Ltd. Intel Capital 10.0 Jibe, Inc. Longworth Venture Partners 10.0 WSO2 Toba Capital 10.0 Valyoo Technologies Private Limited IDG Ventures India 10.0 Wanelo.com (Unnamed Fund Contibuters) 10.0 Codenvy, Inc. Toba Capital 909.0 Artspace Marketplace, Inc. Canaan Partners 8.5 Stormpath, Inc. New Enterprise Associates 8.2 Gild Baseline Ventures 8.0 Piston Cloud Computing, Inc. Cisco Systems, Inc. 8.0 Legen3D Northwater Capital Management Inc. 8.0 U-Bank Runa Capital 8.0 Health Catalyst, LLC Kaiser Permanente Ventures 8.0 Illumio Junipp,er Networks, Inc. 8.0 Illumio Andreessen Horowitz 8.0 SocialFlow (Unnamed Fund Contibuters) 7.8 A Place for Rover Foundry Group 7.0 Skyhigh Networks, Inc. Greylock Management 6.8 Virool, Inc. Thomvest 6.6 Big Switch Networks Intel Capital 6.5 Parkmobile USA, Inc. Fontinalis Partners, LLC 6.3 About.me True Ventures 5.7 Simulmedia, Inc. Time W arner Inve stments 505.0 Storenvy, LLC Intel Capital 5.0 Stitch Fix Baseline Ventures 4.8 CoverHound, Inc. RRE Investors 4.5
M&A & INVESTMENT SUMMARY FEBRUARY 2013 50 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Jethrodata, Inc. Pitango Venture Capital $4.5 Mobilewalla Madrona Venture Group 4.0 StyleSeat, Inc. (Private Investors) 4.0 Smart Eye AB Fouriertransform 393.9 Coalfire Systems, Inc. Baird Capital 3.6 Bislr, Inc. Southern Cross Venture Partners 3.5 Mindflash Technologies Investment Group of Santa Barbara 3.5 Rabbit, Inc. Google Ventures 3.3 Club W, Inc. Crosscut Ventures 3.1 My Meds & Me Albion Ventures LLP 3.1 EatStreet Cornerstone Opportunity Partners 3.0 Nexmo, Inc. Intel Ca pital 3.0 Anunta Tech Infrastructure Services Limited Bessemer Venture Partners 3.0 Think Big Analytics, Inc. (Private Investors) 3.0 Method CRM KlassCapital 3.0 MyTime GRP Partners 3.0 Nomi Group, Inc. First Round Capital 3.0 Upstream Commerce Ltd. Bright Capital Digital 3.0 TeamSnap, Inc. Torstar Corporation 2.8 iFood Movile 2.6 Game Analytics Ap Sunstone Capital A/S 252.5 Luluvise, Inc. (Angel Investors) 2.5 Batterii CincyTech Ventures 2.5 EvntLive, Inc. (Private Investors) 2.3 Smarkets Limited T-Venture Holding GmbH 2.3 GxYz Yahoo Japan 2.2 Business of Fashion Index Ventures 2.1 Medikly, Inc. Easton Capital Partners, L.P. 2.1 Alchemyy,API, Inc. Access Venture Partners 2.0 Ellie Blumberg Capital 2.0 Armor5, Inc. Trinity Ventures 2.0 Rivet & Sway Mousse Partners 2.0 Inverted Edge Singapore National Research Foundation 1.6 Ribbon Draper Fisher Jurvetson 1.6 Blab, Inc. (Private Investors) 1.5 DropShip.com Kickstart Seed Fund 1.5 Insurance Zebra, Inc. Silverton Partners 1.5 Vestec, Inc. MModal IP LLC 151.5 CircleCI, Inc. Baseline Ventures 1.5 Red Hot Labs Andreessen Horowitz 1.5 Rock City Apps, LLC Detroit Venture Partners, LLC 1.5
M&A & INVESTMENT SUMMARY FEBRUARY 2013 51 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed payasUgym Supremum Capital Partners $1.4 Getonic Ltd. thetime 1.3 TinderBox, LLC The Founders Club 1.3 LocalResponse, Inc. Cava Capital 121.2 PhishLabs (Private Investors) 1.2 Polar Mobile AME Cloud Ventures 1.2 GlobeIn World, Inc. (Private Investors) 1.1 Graduway BTG Pactual Participations 1.1 KnexxLocal, Inc. Imperial Capital Group Ltd. 1.1 Enigma Technologies, Inc. TriplePoint Capital 1.1 Tw yxt (Unnamed Fund Contibuters) 1.1 Allocadia Software, Inc. iNovia Ca pital 1.0 Bluefields 500 Startups 1.0 Guide Sapient Corporation 1.0 Gruzobzor Runa Capital 1.0 GroupTalent Version One Ventures 1.0 PayrollHero.com 500 Startups 1.0 Tuition.io, Inc. Mohr, Davidow Ventures 1.0 Leanplum, Inc. Kima Ventures 0.8 DUPLAYS (Unnamed Fund Contibuters) 0.8 vidIQ, Inc. i/o Ventures 080.8 BrightBytes, Inc. Learn Capital Venture Partners 0.8 Bombfell, Inc. Great Oaks Venture Capital 0.7 Endemic Mobile, Inc. Valar Ventures LP 0.7 Shopspot SingTel Innov8 0.6 e27 Pte. Ltd. B Dash Ventures Inc. 0.6 Blottr Digital Limited Kima Ventures 0.6 Hits Consulting Group iMedicor 0.6 SnapTee Limited (()Private Investors) 0.6 Synapsify, Inc. ICG Ventures Ltd. 0.6 Sift Sand Hill Angels, Inc. 0.5 Box Ventures Vandaele Capital 0.5 GeoOp Limite d Cloud Rainmakers 0.5 Jobber Version One Ventures 0.5 OpenBook Accelerate Partners, LLC 0.0 The Knowland Group, Inc. Serent Capital, L.P. 0.0
VC/Growth Capital Undisclosed Batanga Network Ideiasnet - Cloudant, Inc. Samsung Ventures -
M&A & INVESTMENT SUMMARY FEBRUARY 2013 52 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions)
Reported Transaction Target Buyer/Investor Value VC/Growth Capital Undisclosed crealytics GmbH BayBG - Hstreaming LLC Atlas Venture - Imagitek Ltd. Teakwood Capital, L.P. - Morta Security Andreessen Horowitz - Softonic International S.L. Partners Group (USA) Inc. - The Chartis Group Riordan, Lew is & Haden -
M&A & INVESTMENT SUMMARY FEBRUARY 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 FEBRUARY 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 FEBRUARY 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 FEBRUARY 2013 56 REPRESENTATIVE RECENT TRANSACTIONS
has sold a leading digital advertising monetization and shopper marketing a ddynam ic displ lay me dia an d a ldileading provid er of a leading multiplatform travel and a leading provider of digital has sold partner for e-commerce retailers a leading provider of in-store and a real-time behavioral advertising retargeting company transportation-based digital lifestyle media company production services to along with digital subsidiary a portfolio company of shopper marketing signage to company media networks has been sold to brands and agencies major North American retailers has been acquired by has been acquired by has received a mezzanine debt has been sold to has been sold to investment from provider of online travel guides for has been sold to top destinations around the world specializing in retail, digital, to shopper marketing and consumer a subsidiary of services to with financing from (NSYE: ACN) (NYSE: GCI ) (NSYE: AOL) (JASDAQ:4755)
has sold has been sold to a leading digital direct marketing a leader in global healthcare company utilizing a proprietary has sold its a leader in technology and global primary market research and the top independent 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 Sports Marketing Print Apple (iOS), and Android a leader in multichannel retail, dental savings plans and marketing industry has been sold to a global digital marketing agency 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 a unit of to has received $66M investment by has been sold to domain name registration, from a portfolio company of acquisition, brokerage and sales a leading data management and with debt financing from to audience optimization platform (DMP) company
has sold has sold has sold (Nasdaq: TREE) a leading provider of taxi-based has sold (TSX: PTO) has sold a leading advertising outdoor media has acquired A leading urban and technology company has been sold to 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 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 to impact of promotion on to (NYSE: PAY) physician prescribing behavior (Xetra: DPW.DE) (NasdaqGS: LEDR) (NYSE: IPG)
has merged with a portfolio company of a division of one of North America’s largest a leading online video a digital communications agency has received a majority Vestar Capital Partners mobile marketing and gateway advertising network with a proprietary software investment from a provider of multichannel has sold solution providers 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 has acquired a portfolio company of a portfolio company of (Nasdaq:GSIC) Parthenon Capital Partners KRG Capital Partners (d(Nasdaq: RRD )
New Digital Group
has sold (NASDAQ: TREE) a leading performance-based a global marketing services has sold the has acquired certain assets of a leading direct response advertising network company television media 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 has received a major pharmaceutical and biotech automotive enthusiasts investment from industry and social networking an interactive direct marketing technology platform company specializing in to in a combination that creates ldlead generation for the 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 FEBRUARY 2013 57