M&A Activity Remains Strong in 1H'16 As Private Equity Firms Deploy Capital Across the Video Collaboration, Digital Signag

M&A Soundcheck - 1H’16

M&A Activity Remains Strong in 1H’16 as Private Equity Firms Deploy Capital Across the Video Collaboration, Digital Signage and Audio Distribution Sectors

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC M&A Activity Remains Strong in 1H’16 as Private Equity Firms Deploy Capital Across the Video Collaboration, Digital Signage and Audio Distribution Sectors

The first several months of 2016 generated numerous notable transactions across the sectors tracked by our Commercial & Consumer Technology team. Private equity firms are actively deploying vast amounts of un-invested capital in, and exiting from, high-quality companies clustered in video collaboration, digital signage and the audio distribution sectors. In addition, strategic acquirers remain active, executing transactions that augment technology offerings, penetrate new markets or add compelling brands.

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Gary Rabishaw Adam Abramowitz Managing Director Senior Vice President Co-Head of Commercial & Consumer Technology Co-Head of Commercial & Consumer Technology [email protected] [email protected]

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Pro Audio / Video H.I.G. Capital Acquires AVI-SPL H.I.G. Capital, a leading global private equity investment firm with $19 billion of equity capital under management, acquired AVI-SPL, Inc. from Silver Lake Private Equity, which invested in the business over seven years ago. AVI-SPL is the market-leading end-to-end provider of audio visual and video collaboration solutions for organizations of all types around the world. AVI-SPL’s services enable global communications for the modern workplace, facilitating meaningful collaboration to enhance productivity for its enterprise clients.

Milestone AV Technologies Acquires Vaddio Milestone AV Technologies acquired Vaddio, a leading global manufacturer of PTZ cameras, professional AV solutions, and a full suite of Unified Communication and collaboration products for the A/V, videoconference and broadcast markets. Vaddio, based in Minnetonka, Minn., will now join the Milestone family of brands, including Chief®, Da-lite®, SANUS® and Projecta®. Vaddio was previously owned by Thompson Street Capital Partners, while Milestone is majority-owned by the Pritzker Group.

Graycliff Partners Acquires Williams Sound Graycliff Partners, an independent investment firm focusing on middle-market private equity and mezzanine investments, acquired Williams Sound, a leading provider of assistive listening systems, from Cardinal Equity Partners who owned the business since 2011. Williams has a growing portfolio of products servicing the listening and audio needs of various end-markets including corporate, houses of worship, tours, government, entertainment and education, among others. Look for Graycliff to leverage Williams as a platform to acquire other niche pro A/V businesses.

Almo Professional Goes Global and Acquires International Audio Visual Almo Professional A/V acquired certain assets and assumed certain liabilities of International Audio Visual Inc. (IAVI), a leading value-added global distributor in the pro A/V space with a strong focus on projectors and digital displays. As a result, Almo Corp. will become the largest privately-held professional audio video distributor in the industry and a $1.2 billion corporation. The acquisition also expands Almo globally through the procurement of IAVI’s Latin American business.

Ardian Acquires d&b audiotechnik Ardian, a European independent private investment company with assets of $55 billion, acquired d&b audiotechnik, a mainstay of loudspeaker manufacturing. Ardian acquired d&b from Odewald & Compagnie and COBEPA, which first invested in the company in 2011. d&b develops and produces high-quality sound systems for mobile and permanently-installed applications. Since 2011, d&b’s sales have more than doubled from £44 million to £94 million in the financial year 2015.

Cortec Group Acquires Chauvet and Sons Cortec Group, a New York-based private equity firm, acquired Chauvet and Sons, a leading developer and marketer of branded entertainment and architectural lighting products. Chauvet is a leader in the DJ market and has customers throughout the world. Following the transaction, the Chauvet family will remain a significant investor in the company.

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Digital Signage Daktronics Acquires ADFLOW Networks Inc. Daktronics Inc. (NASDAQ: DAKT) acquired ADFLOW Networks, Inc. Founded in 2002, ADFLOW specializes in delivering digital signage and media solutions to leading retailers, convenience stores and other businesses throughout North America. Daktronics plans to integrate its sales and market channel efforts in an effort to extend ADFLOW’s digital media platform capabilities to all Daktronics customer segments. Uniguest Drives Expansion Through Acquisitions Nashville, Tenn.-based Uniguest, the hospitality industry’s leading provider of secure and fully managed guest-facing technologies, acquired three companies in the past two months as it builds its portfolio of solutions and broadens its client reach. UniGuest has been financially backed by Atlantic Street Capital since 2013. ● Showcase Technology Torrance, Calif.-based Showcase Technology provides secure, centrally managed free-to-guest and pay-per- use computer systems, printers, copiers and fax machines to the hospitality marketplace and business services segment. This acquisition drives Uniguest’s strategy of expanding its footprint within the hospitality industry and diversifying into new industry verticals. ● Ascension Software and Hospitality Division of Eleven Continuing its aggressive strategy to grow its hospitality market leadership and expand its opportunity in associated markets requiring customer or guest connectivity, Uniguest acquired two businesses in April. The Hospitality division of Eleven provides business-center managed services for the hospitality sector, and Ascension Software is a provider of remotely managed, self-service, automated business centers, public computing, in-room applications for the hospitality industry. Residential Technology Legrand Acquires Luxul Wireless Legrand agreed to acquire Luxul Wireless, adding the leading IP networking provider to its stable of brands—On-Q, Vantage, Middle Atlantic, QMotion, Nuvo and others—that cater to the custom integration industry. Luxul offers simple- to-deploy professional grade IP networking solutions for use by custom installation professionals in both residential and commercial environments. Luxul exclusively caters to integration and installation professionals and generates over $20 million in revenue.

Ring Raises Series C Investment from Kleiner Perkins Ring continued to build its cash stockpiles and by raising $61.2 million in Series C funding from Kleiner Perkins Caufield & Byers (KPCB), with add-on investment from Sir Richard Branson. These new funds enable Ring to expand its line of smart video doorbells and further its international presence. Ring, the leader in outdoor home security, recently debuted its newest smart security device, RingTM Video Doorbell Pro, a premium, compact Wi-Fi video doorbell.

Control4 Acquires Pakedge Control4 Corp. (NASDAQ: CTRL), a leading global provider of smart home solutions, completed the $32.7 million acquisition of Pakedge Device & Software, Inc., a leader in advanced networking products and cloud network- management services for both wireless and wired networking solutions for the connected home and business. The transaction brings to Control4 deep networking expertise, an industry-leading suite of networking, power management, and cloud-based remote management capabilities as well as an expanded sales channel of more than 1,100 additional independent dealers. Pakedge generated over $18.5 million of sales in 2015.

Peter Theil and Solamere Capital Invest in Vivint Smart Home Vivint Smart Home™, a leading provider of smart home technology and services, has received a $100 million equity investment co-led by tech investor Peter Thiel and investment firm Solamere Capital. The strategic investment will help fuel Vivint’s rapid growth and product innovation as it extends its preeminent position in the growing smart home and internet of things market.

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Consumer EVA Automation Acquires Bowers & Wilkins EVA Automation, a software platform focused on audio, visual and home entertainment solutions, acquired the iconic Bowers & Wilkins (B&W), a global manufacturer of premium speakers and other related audio products. We expect this deal to help combine B&W’s world-class audio experiences with more forward-looking automation and control technologies. EVA Automation, based in Redwood City, Calif. is looking to raise as much as $250 million based on a $600 million valuation in its current round. B&W CEO and owner, Joe Atkins will become CEO of the combined businesses and will retain a “significant equity stake” in the combined companies. Eva Automation is led by chairman Gideon Yu, a former Facebook and YouTube executive, and has received VC backing from Formation 8 fund. Mr. Yu is a self-professed audiophile with a passion for the B&W brand.

Cobra Electronics Acquires WASPcam Cobra Electronics—a leading global supplier of mobile and automotive products that include dash cams, power inverters, and portable jump starters—acquired WASPcam, an Ont.-based producer of innovative action-sports cameras. The acquisition offers an entrance into the fast-growing action cam segment. Cobra aims to expand WASP’s offerings and product coverage to the company’s driving, boating and outdoor customers. Cobra is part of Cedar Electronics, which includes Escort radar detectors and is owned by Monomoy Capital Partners.

ZAGG Acquires mophie, Inc. ZAGG Inc. (NASDAQ GS: ZAGG), a leading designer and manufacturer of mobile device accessories, acquired, mophie Inc., a category pioneer of mobile device battery cases and accessories. Zagg has agreed to pay $100 million at closing, plus the amount by which 5X-adjusted EBITDA exceeds $100 million over a 12-month earn-out period. This is a transformative acquisition for Zagg, which seeks to strengthen product development, improve brand presence, and expand distribution of the merged enterprise.

Logitech Acquires Jaybird Logitech International (SIX:LOGN) (NASDAQ: LOGI) agreed to acquire Jaybird LLC of Salt Lake City, Utah, for approximately $50 million in cash, with an additional earn-out of up to $45 million based on achievement of growth targets over the next two years. Jaybird is a leader in wireless audio wearables for sports and active lifestyles, a category the company created in 2006. This deal seems to be consistent with Logi’s growing focus on the mobile and active audio lifestyle. This marks their second acquisition in the earbud sector after acquiring Ultimate Ears in 2008, which Intrepid professionals advised.

Garmin Acquires DeLorme® Garmin Ltd. (NASDAQ: GRMN) acquired substantially all of the assets of DeLorme, a privately-held company that designs and markets consumer-based satellite tracking devices with two-way communication and navigational capabilities. DeLorme’s inReach series of two-way satellite communication devices are a good complement to Garmin’s outdoor product solutions as they allow the user to send and receive satellite text messages or trigger an SOS for emergency help, anywhere in the world. Garmin will retain most of the associates of DeLorme and will continue operations at its existing location in Yarmouth, Maine following the completion of the acquisition.

GoPro Acquires Splice and Replay GoPro, Inc. (NASDAQ: GPRO) acquired two leading mobile video editing apps Replay and Splice. The merging of Replay and Splice into GoPro’s mobile strategy continues GoPro’s ability to deliver convenient, yet competitive, mobile editing solutions to GoPro customers and billions of smartphone users.

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Publicly Traded Companies - Professional (USD Millions) Last Twelve Months Revenue Growth Enterprise Value / LTM Company Enterprise Value Market Cap Revenue Gross Margin EBITDA Margin 1-‐year 3-‐year Revenue EBITDA

Unified Communications Polycom, Inc. $1,180 $1,619 $1,227 57.9% 12.1% (9.0%) (4.0%) 1.0x 7.9x Plantronics, Inc. $1,426 $1,331 $857 50.7% 16.7% (0.9%) 4.0% 1.7x 10.0x GN Store Nord A/S $3,277 $2,935 $1,300 60.7% 18.7% 14.5% 10.4% 2.5x 13.5x

A/V Technologies Dolby Laboratories, Inc. $4,119 $4,735 $980 89.3% 28.9% 2.4% 2.0% 4.2x 14.6x DTS Inc. $475 $378 $138 89.1% 16.0% (4.0%) 11.1% 3.4x 21.5x Technicolor SA $3,859 $2,809 $4,204 22.8% 14.5% 9.6% 0.7% 0.9x 6.3x Rovi Corporation $2,144 $1,330 $511 80.9% 32.3% (4.4%) 1.4% 4.2x 13.0x Avid Technology, Inc. $304 $221 $506 61.8% 6.6% (4.6%) (7.3%) 0.6x 9.2x

Pro A/V ClearOne, Inc. $76 $96 $58 64.4% 22.2% (0.2%) 7.6% 1.3x 5.9x Evertz Technologies Limited $903 $1,002 $297 57.0% 27.4% 5.1% 4.8% 3.0x 11.1x Daktronics Inc. $320 $376 $590 21.8% 5.1% (0.7%) 5.3% 0.5x 10.7x Yamaha Corporation $4,564 $5,292 $4,098 39.7% 12.9% 0.8% 5.9% 1.1x 8.6x Barco NV $574 $842 $1,184 35.0% 2.7% 13.3% (3.8%) 0.5x 18.2x TEV / Revenue Multiples 5.00x

4.00x

3.00x

2.00x

1.00x

0.00x Jul-‐13 Jul-‐14 Jul-‐15 Jan-‐15 Jan-‐16 Jan-‐14 Jun-‐13 Jun-‐14 Jun-‐15 Oct-‐15 Oct-‐13 Oct-‐14 Apr-‐14 Apr-‐15 Apr-‐16 Feb-‐15 Feb-‐15 Sep-‐13 Sep-‐13 Feb-‐14 Sep-‐14 Feb-‐16 Sep-‐15 Sep-‐15 Dec-‐13 Dec-‐13 Dec-‐14 Dec-‐15 Aug-‐13 Aug-‐14 Aug-‐15 Nov-‐15 Nov-‐15 Nov-‐14 Nov-‐14 Nov-‐13 Nov-‐13 Mar-‐14 Mar-‐15 Mar-‐16 May-‐13 May-‐14 May-‐15 May-‐16 TEV / EBITDA Multiples

20.00x

16.00x

12.00x

8.00x

4.00x

0.00x Jul-‐13 Jul-‐14 Jul-‐15 Jan-‐14 Jan-‐15 Jan-‐16 Jun-‐13 Jun-‐14 Jun-‐15 Oct-‐13 Oct-‐14 Oct-‐15 Apr-‐14 Apr-‐15 Apr-‐16 Feb-‐15 Feb-‐15 Feb-‐16 Feb-‐14 Feb-‐14 Sep-‐15 Sep-‐13 Sep-‐13 Sep-‐14 Dec-‐13 Dec-‐13 Dec-‐14 Dec-‐15 Aug-‐13 Aug-‐14 Aug-‐15 Nov-‐13 Nov-‐13 Nov-‐14 Nov-‐14 Nov-‐15 Mar-‐14 Mar-‐15 Mar-‐16 May-‐13 May-‐14 May-‐15 May-‐16

Source: S&P Capital IQ. Indices calculated on an equally-weighted basis and adjusted for outliers. Historical trading multiples reflect one-month trailing averages. “NM” stands for “Not Meaningful.” intrepidib.com | Mergers & Acquisitions | Capital Markets | Strategic Advisory

11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Publicly Traded Companies - Consumer (USD Millions) Last Twelve Months Revenue Growth Enterprise Value / LTM Company Enterprise Value Market Cap Revenue Gross Margin EBITDA Margin 1-‐year 3-‐year Revenue EBITDA

Mobile Device Manufacturing Apple Inc. $536,974 $512,906 $227,535 39.8% 34.5% 7.2% 10.4% 2.4x 6.8x HTC Corporation $876 $2,109 $3,763 18.0% -‐8.0% (35.2%) (25.1%) 0.2x NM LG Electronics Inc. $14,104 $8,866 $48,803 23.5% 5.9% (5.4%) (0.1%) 0.3x 4.9x Samsung Electronics Co. Ltd. $121,331 $174,962 $177,574 38.6% 23.6% 0.0% (0.9%) 0.7x 2.9x Electronic Accessories Garmin Ltd. $7,081 $8,137 $2,859 53.7% 21.7% (0.5%) 2.0% 2.5x 11.4x GoPro, Inc. $1,217 $1,691 $1,620 41.6% 5.2% 16.2% 45.5% 0.8x 14.5x Harman International Industries, $6,327 $5,404 $6,710 30.2% 12.3% 13.3% 16.8% 0.9x 7.7x Logitech International SA $2,000 $2,519 $2,018 33.7% 9.9% (4.5%) (1.3%) 1.0x 10.0x Turtle Beach Corporation $131 $56 $163 25.0% -‐10.6% (12.6%) (7.7%) 0.8x NM Skullcandy, Inc. $74 $98 $266 41.3% 7.2% 7.5% (3.6%) 0.3x 3.9x VOXX International Corporation $213 $111 $681 29.1% 2.5% (12.1%) (5.4%) 0.3x 12.6x ZAGG Inc $213 $226 $269 37.8% 14.2% 3.0% 0.6% 0.8x 5.6x Connected Home Control4 Corporation $109 $175 $163 50.1% 3.1% 9.7% 14.2% 0.7x 21.8x Nortek Inc. $2,149 $781 $2,526 30.0% 10.1% (0.8%) 4.7% 0.9x 8.4x Universal Electronics Inc. $959 $962 $603 27.7% 10.2% 7.2% 9.2% 1.6x 15.6x TEV / Revenue Multiples 2.00x

1.60x

1.20x

0.80x

0.40x

0.00x Jul-‐13 Jul-‐14 Jul-‐15 Jan-‐14 Jan-‐15 Jan-‐16 Jun-‐13 Jun-‐14 Jun-‐15 Oct-‐13 Oct-‐14 Oct-‐15 Apr-‐14 Apr-‐15 Apr-‐16 Sep-‐13 Sep-‐13 Feb-‐14 Sep-‐14 Feb-‐15 Sep-‐15 Feb-‐16 Dec-‐14 Dec-‐14 Dec-‐13 Dec-‐13 Dec-‐15 Aug-‐13 Aug-‐14 Aug-‐15 Nov-‐13 Nov-‐13 Nov-‐14 Nov-‐15 Mar-‐15 Mar-‐16 Mar-‐14 May-‐13 May-‐14 May-‐16 May-‐15 TEV / EBITDA Multiples 20.00x

16.00x

12.00x

8.00x

4.00x

0.00x Jul-‐13 Jul-‐14 Jul-‐15 Jan-‐14 Jan-‐15 Jan-‐16 Jun-‐13 Jun-‐14 Jun-‐15 Oct-‐13 Oct-‐14 Oct-‐15 Apr-‐14 Apr-‐15 Apr-‐16 Sep-‐13 Sep-‐13 Feb-‐14 Sep-‐14 Feb-‐15 Sep-‐15 Feb-‐16 Dec-‐13 Dec-‐13 Dec-‐14 Dec-‐15 Dec-‐15 Aug-‐13 Aug-‐14 Aug-‐15 Nov-‐13 Nov-‐13 Nov-‐14 Nov-‐15 Nov-‐15 Mar-‐14 Mar-‐15 Mar-‐16 May-‐13 May-‐15 May-‐16 May-‐14

11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Last Three Months Equity Performance

Consumer Electronics

40% 33.7%

30% 22.8% 23.2% 20.2% 18.0% 20% 13.7% 14.3% 11.7% 9.4% 9.4% 5.1% 10% 2.9% 1.6% 0% (2.4%) (10%)

Market Cap Change (20%) (17.9%) (30%)

(40%)

Apple Inc. ZAGG Inc Garmin Ltd. GoPro, Inc. Nortek Inc. Skullcandy, Inc. HTC Corpora=on LG Electronics Inc. Control4 Corpora=on Logitech Interna=onal Turtle SA Beach Corpora=on Universal Electronics Inc. Samsung Electronics Co. Ltd. VOXX Interna=onal Corpora=on

Harman Interna=onal Industries, Incorporated Professional Electronics

40%

30% 27.0% 24.6%

20% 14.4% 15.6% 12.2% 8.6% 9.9% 10% 7.2%

0.4% 0%

(2.8%) (10%)

Market Cap Change (9.2%)

(20%)

(30%)

(40%) Polycom, Inc. Plantronics, Inc. GN Store Nord A/ Dolby DTS Inc. Technicolor SA ClearOne, Inc. Evertz Daktronics Inc. Yamaha Barco NV S Laboratories, Inc. Technologies CorporaSon Limited

11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Select Transactions

a portfolio company of a portfolio company of

a portfolio company of has been acquired by

has been acquired by has been acquired by a portfolio company of

Advisor to Blue Microphones Advisor to Ultimate Ears* Advisor to SunBriteTV

a portfolio company of has been acquired by has completed a senior and subordinated debt financing led by has been acquired by an affiliate of Linear Corporation, a subsidiary of

Advisor to PreSonus Advisor to SpeakerCraft* Advisor to Polk Holding Corp.*

*Represents transactions executed by principals of Intrepid while at previous securities firms.

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC Commercial & Consumer Technology Team Connected Home | Lifestyle Electronics | Audio / Video | Pro A/V | Musical Instruments

Gary Rabishaw Adam Abramowitz Managing Director Senior Vice President Co-Head of Commercial & Consumer Technology Co-Head of Commercial & Consumer Technology

Intrepid Investment Bankers provides M&A, capital raising and strategic advisory services to entrepreneurs and middle- market companies in various industry sectors. Our heritage, rooted in our founders’ successful 35-year history, breeds a culture that embraces teamwork, tenacity and creativity to win big for our clients. We believe that every company has an entrepreneurial passion that drives it and a story that defines it. Our team delivers results through skillful positioning of the client’s story and relentless execution. Based in Los Angeles, Intrepid augments its international capabilities through active membership in M&A International, an exclusive global alliance of M&A advisory firms.

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11755 Wilshire Blvd., Suite 2200, Los Angeles, CA 90025 T 310.478.9000 F 310.478.9004 Member FINRA/SIPC