September 2014 M&A and Investment Summary
Expertise. Commitment. Results. Table of Contents
1 Overview of Monthly M&A and Investment Activity 3
2 Monthly M&A and Investment Activity by Industry Segment 9
3 Additional Monthly M&A and Investment Activity Data 42
4 About Petsky Prunier 57
Securities offered through Petsky Prunier Securities, LLC, member of FINRA.
This M&A and Investment Summary has been prepared by and is being distributed in the United States by Petsky Prunier, a broker dealer register with the U.S. SEC and a member of FINRA. Petsky Prunier is not affiliated with Altium Capital Ltd, but has partnered with Altium to expand its international presence. Altium has not prepared or verified the information in this Summary. Persons in the United States should contact Petsky Prunier for further information or services. This M&A and Investment Summary is not being distributed by Altium Capital Ltd in the United States and Altium Capital Ltd is not offering any services to persons in the United States.
2| M&A and Investment Summary September 2014 M&A and Investment Summary for All Segments
Transaction Distribution . A total of 428 deals were announced in September 2014, of which 236 were worth $37.5 billion in aggregate reported value . Software was the most active and highest reported value segment with 92 deals announced, of which 46 were reported at $13.5 billion in aggregate value . Digital Media/Commerce was another active segment with 85 transactions that were worth $4.5 billion . Strategic buyers announced 197 deals (46 percent of total volume), of which 40 were worth $24.9 billion in aggregate value . VC/Growth Capital investors announced 217 deals, of which 192 were reported for $5.2 billion . Buyout investors announced 14 deals during the month, of which four were worth $7.4 million in reported aggregate value
September 2014 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Software 92 21% $13,511.3 36% 42 $9,698.0 6 $2,810.0 44 $1,003.3 Digital Media/Commerce 85 20% 4,461.0 12% 32 3,426.0 0 ‐ 53 1,035.0 Marketing Technology 73 17% 5,177.6 14% 31 264.0 1 4,300.0 41 613.6 Information & Business Services 56 13% 5,692.0 15% 29 3,762.0 5 320.0 22 1,610.0 Technology & Communications 44 10% 746.1 2% 15 199.0 0 ‐ 29 547.1 Digital Advertising 42 10% 7,232.2 19% 20 7,025.1 1 ‐ 21 207.1 Agency & Marketing Services 25 6% 500.1 1% 20 404.6 0 ‐ 5 95.5 Traditional Media 11 3% 213.1 1% 8 144.5 1 ‐ 2 68.6 Total 428 100% 37,533.3 100% 197 24,923.1 14 7,430.0 217 5,180.2
3| M&A and Investment Summary September 2014 M&A and Investment Summary for All Segments
Transaction Distribution . Compared to the previous month aggregate reported value in September increased 52 percent from August 2014, and increased 109 percent from September 2013 . Strategic activity accounted for 66 percent of reported deal value during the month, and included: • SAP’s $8.3 billion purchase of expense management solutions provider Concur Technologies, at a valuation of 12.0x revenue • Vista Equity Partners’ $4.3 billion acquisition of TIBCO Software, at a valuation of 4.0x revenue • Cognizant Technology Solutions’ $2.7 billion acquisition of healthcare IT and service solutions provider TriZetto from Apax Partners at a valuation of 3.8x revenue and 14.2 EBITDA • The $950 million purchase of Move, which operates an online network of Websites for real estate search, by News Corporation at a valuation of 4.4x revenue • Microsoft’s $2.5 billion purchase of Sweden‐based gaming company Mojang, the maker of Minecraft
$90.0 $500.0 $81.5 $80.0 WhatsApp $400.0 $70.0 /Facebook $65.1 $60.0 $300.0 $50.0 Time $38.7 AT&T/ $40.0 Warner DirecTV $37.5 Cable/Co $32.5 $200.0 $30.0 mcast $22.4 $24.8 $20.0 $18.0 $18.4 $14.7 $12.4 $100.0 $8.4 $11.7 $10.0 375 309 293 301 384 444 406 427 395 372 441 314 428 $‐ $- Sep‐13 Oct‐13 Nov‐13 Dec‐13 Jan‐14 Feb‐14 Mar‐14 Apr‐14 May‐14 Jun‐14 Jul‐14 Aug‐14 Sep‐14
4| M&A and Investment Summary September 2014 Selected Transactions with Valuation Information Disclosed ($ in Millions)
Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA
Agency & Marketing Services Nurun, Inc. Digital Agency Publicis Groupe S.A.$ 114.4 $ 130.8 $ ‐ 0.9x NA Digital Advertising Cars.com Online Lead Generation Gannett Company, Inc. 2,500.0 ‐ 543.5 NA 4.6x Conversant, Inc. Affiliate/CPA Network Alliance Data Systems Corporation 2,365.3 593.8 197.7 4.0x 12.0x Move, Inc. Online Lead Generation News Corporation, Inc. 1,030.8 234.6 9.9 4.4x NM Ebates, Inc. Digital Promotion/Coupon Rakuten, Inc. 1,000.0 167.4 ‐ 6.0x NA
Digital Media/Commerce Shanda Games Limited Gaming Haitong Securities Co., Ltd. 1,798.7 681.9 308.5 2.6x 5.8x Harry & David Holdings, Inc. eCommerce 1‐800‐Flowers.com, Inc. 142.7 381.7 20.6 0.4x 6.9x Information & Business Services TriZetto Corporation Healthcare Consulting Cognizant Technology Solutions Corporation 2,700.0 710.5 190.1 3.8x 14.2x Beijing Shiji Information Technology, Co., Ltd. IT Consulting/Systems Integration Alibaba Group Holding Ltd. 3,058.0 282.3 58.1 10.8x 52.6x XRS Corporation Logistics Omnitracs, LLC 178.0 53.0 6.2 3.4x 28.9x Marketing Technology TIBCO Software, Inc. BI Tools Vista Equity Partners 4,300.0 1,076.2 167.9 4.0x 25.6x Location Labs Mobile Technology AVG Technologies N.V. 233.0 27.4 ‐ 8.5x NA
Software Concur Technologies, Inc. Financial Software SAP America, Inc. 8,032.1 667.9 32.4 12.0x NM Compuware Corporation Application Management Software Thoma Bravo, Inc. 2,500.0 714.5 85.5 3.5x 29.3x The Attachmate Group, Inc. Application Management Software Micro Focus International plc 1,200.0 923.1 1,717.4 1.3x 0.7x
5| M&A and Investment Summary September 2014 Securities in Registration ($ in Millions)
Aggregate LTM Date Company Name Country Segment Offering Value Rev EBITDA Sep‐14 Upland Software, Inc. United States Software$ 50.0 $ 54.4 $ 2.7 Aug‐14 HubSpot, Inc. United States Marketing Technology 100.0 93.8 (33.5) Aug‐14 LendingClub Corporation United States Technology & Communications 500.0 147.7 NA
Aug‐14 Wayfair LLC* United States Digital Media/Commerce 350.0 1,106.8 (51.6)
Jul‐14 Yodlee, Inc. United States Software 75.0 172.4 (2.8)
Jul‐14 Zayo Group, LLC United States Software 500.0 827.0 NA
Jun‐14 The Go Daddy Group, Inc. United States Digital Media/Commerce 100.0 NA NA May‐14 Good Technology, Inc. United States Technology & Communications 100.0 160.0 NA
Apr‐14 Goodman Networks, Inc. United States Software 100.0 931.7 19.6
Apr‐14 Zoosk, Inc. United States Digital Media/Commerce 100.0 178.2 2.3
Mar‐14 Box, Inc. United States Software 250.0 124.1 (142.5)
Mar‐14 Globoforce Group plc Ireland Software NA NA NA Jun‐12 goldenTech SA Switzerland Software 5.2 NA NA
Apr‐12 BlackStratus, Inc. United States Software 20.0 9.2 (0.6) Mar‐12 Reval Holdings, Inc. United States Software 75.0 47.0 (12.1)
* Company began trading in October
6| M&A and Investment Summary September 2014 LTM IPO Performance (1/2)
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 Sep 30, 2014 1st Trading Day
Sep‐14 NYSE:BABA Alibaba Group Holding Limited China $66.00‐$68.00 $68.00 $93.89, up 38% $88.85 (5.4%)
Sep‐14 NYSE:CIVI Civitas Solutions, Inc. United States 20.00‐23.00 17.00 16.61, down 2% 15.62 (6.0%)
Sep‐14 NasdaqGS:CYBR Cyber‐Ark Software Ltd. Israel 13.00‐15.00 16.00 29.93, up 87% 32.01 6.9%
Sep‐14 NYSE:TVPT Travelport Worldwide Limited United States 14.00‐16.00 16.00 16.40, up 3% 16.46 0.4% Aug‐14 NasdaqGS:DSKY iDreamSky Technology Limited China 12.00‐14.00 15.00 19.05, up 27% 17.01 (10.7%)
Aug‐14 NYSE:MBLY Mobileye N.V. Israel 21.00‐23.00 25.00 37.00, up 48% 53.59 44.8%
Jul‐14 NasdaqGS:HQY HealthEquity, Inc. United States 10.00‐12.00 14.00 17.60, up 26% 18.31 4.0%
Jul‐14 NYSE:TSQ Townsquare Media, Inc. United States 14.00‐16.00 11.00 10.25, down 7% 12.02 17.3%
Jul‐14 NasdaqGS:TUBE TubeMogul, Inc. United States 7.00‐8.00 7.00 11.50, up 64% 11.50 0.0%
Jun‐14 NYSE:ANET Arista Networks, Inc. United States 36.00‐40.50 43.00 55.00, up 28% 88.33 60.6%
Jun‐14 NYSE:IMPR Imprivata, Inc. United States 14.00‐16.00 15.00 16.25, up 8% 15.52 (4.5%)
Jun‐14 NasdaqGS:MRKT Markit Ltd. United Kingdom 23.00‐25.00 24.00 26.70, up 11% 23.35 (12.5%) Jun‐14 NasdaqGS:MOBL MobileIron, Inc. United States 8.00‐10.00 9.00 11.02, up 22% 11.14 1.1%
Jun‐14 NYSE:ZPIN Zhaopin Ltd. China 12.50‐14.50 13.50 14.65, up 9% 12.97 (11.5%)
May‐14 NYSE:CMCM Cheetah Mobile Inc. China 12.50‐14.50 14.00 14.10, flat 18.25 29.4%
May‐14 NasdaqGS:JD JD.com, Inc. China 16.00‐18.00 19.00 22.80, up 20% 25.82 13.2%
May‐14 NYSE:JMEi Jumei International Holding Limited China 19.50‐21.50 22.00 25.52, up 16% 23.48 (8.0%)
May‐14 NasdaqGS:TRUE TrueCar, Inc. United States 12.00‐14.00 9.00 10.44, up 16% 17.95 71.9%
May‐14 NYSE:ZEN Zendesk, Inc. United States 8.00‐10.00 9.00 13.43, up 49% 21.59 60.8%
Apr‐14 NasdaqGM:FIVN Five9, Inc. United States 9.00‐11.00 7.00 8.25, up 18% 6.54 (20.7%) Apr‐14 NYSE:GRUB GrubHub Inc. United States 23.00‐25.00 26.00 34.00, up 31% 34.24 0.7%
Apr‐14 NYSE:IMS IMS Health Holdings, Inc. United States 18.00‐21.00 20.00 23.90, up 20% 26.19 9.6%
Apr‐14 NYSE:PAYC Paycom Software, Inc. United States 18.00‐20.00 15.00 15.00, flat 16.56 10.4%
Apr‐14 NasdaqGS:SPWH Sportsman's Warehouse Holdings, Inc. United States 11.00‐13.00 9.50 12.00, up 26% 6.74 (43.9%)
Apr‐14 NYSE:RUBI The Rubicon Project, Inc. United States 15.00‐17.00 15.00 20.04, up 34% 11.73 (41.5%)
Apr‐14 NasdaqGS:WB Weibo Corporation China 17.00‐19.00 17.00 20.24, up 19% 18.69 (7.7%)
Mar‐14 NYSE:ATEN A10 Networks, Inc. United States 13.00‐15.00 15.00 16.21, up 8% 9.11 (43.8%) Mar‐14 NYSE:AMBR Amber Road, Inc. United States 10.50‐12.50 13.00 11.50, down 11% 17.34 50.8%
7| M&A and Investment Summary September 2014 LTM IPO Performance (2/2)
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 Sep 30, 2014 1st Trading Day
Mar‐14 NYSE:HIVE Aerohive Networks, Inc. United States $9.00‐$11.00 $10.00 $9.99, down 1% $8.02 (19.7%)
Mar‐14 NasdaqGS:BRDR Borderfree, Inc. United States 14.00‐16.00 16.00 20.10, up 26% 12.90 (35.8%)
Mar‐14 NYSE:CSLT Castlight Health, Inc. United States 13.00‐15.00 16.00 38.85, up 143% 12.94 (66.7%)
Mar‐14 NYSE:CBSO CBS Outdoor Americas Inc. United States 26.00‐28.00 28.00 29.50, up 5% 29.94 1.5% Mar‐14 NYSE:COUP Coupons.com Incorporated United States 12.00‐14.00 16.00 30.00, up 88% 11.96 (60.1%)
Mar‐14 NYSE:EVDY Everyday Health, Inc. United States 13.00‐15.00 14.00 14.50, flat 13.97 (3.7%)
Mar‐14 NYSE:KING King Digital Entertainment plc Ireland 21.00‐24.00 22.50 19.00, down 15% 12.70 (29.8%)
Mar‐14 NasdaqGS:PCTY Paylocity Holding Corpora ti on Uni ted States 14.00‐16.00 17.00 28.50, up 68% 19.65 (31.1%)
Mar‐14 NYSE:QTWO Q2 Holdings, Inc. United States 11.00‐13.00 13.00 16.68, up 28% 14.00 (16.1%)
Mar‐14 NYSE:TNET TriNet Group, Inc. United States 15.00‐17.00 16.00 19.10, up 19% 25.75 34.8%
Mar‐14 NasdaqGS:VRNS Varonis Systems, Inc. United States 19.00‐21.00 22.00 44.56, up 103% 21.10 (52.6%) Jan‐14 NYSE:CRCM Care.com, Inc. United States 14.00‐16.00 17.00 24.30, up 43% 8.15 (66.5%)
Dec‐13 NYSE:ATHM Autohome Inc. China 14.00‐16.00 17.00 26.95, up 58% 42.01 55.9%
Dec‐13 NYSE:NMBL Nimble Storage, Inc. United States 18.00‐20.00 21.00 33.81, up 61% 25.97 (23.2%)
Nov‐13 NYSE:CUDA Barracuda Networks, Inc. United States 18.00‐21.00 18.00 21.55, up 20% 25.65 19.0%
Nov‐13 NYSE:CHGG Chegg, Inc. United States 9.50‐11.50 12.50 9.64, down 23% 6.24 (35.3%)
Nov‐13 NYSE:MVNR Mavenir Systems, Inc. United States 15.00‐17.00 10.00 9.55, down 4.5% 12.56 31.5%
Nov‐13 NasdaqGM:GOMO Sungy Mobile Limited China 9.50‐11.50 11.22 13.35, up 19% 6.52 (51.2%)
Nov‐13 NYSE:TWTR Twitter, Inc. United States 23.00‐25.00 26.00 44.90, up 73% 51.58 14.9% Nov‐13 NasdaqGS:WIX Wix.com Ltd. Israel 14.50‐16.50 16.50 16.31, down 1% 16.25 (0.4%)
Nov‐13 NasdaqGS:ZU zulily, Inc. United States 18.00‐20.00 22.00 37.70, up 71% 37.89 0.5%
Oct‐13 NasdaqGS:COMM CommScope Holding Compa ny, Inc. United States 18.00‐21.00 15.00 4.99, flat 23.91 379.2%
Oct‐13 NasdaqGS:CRTO Criteo SA France 27.00‐29.00 31.00 35.39, up 15% 33.65 (4.9%)
Oct‐13 NasdaqGS:EIGI Endurance International Group Holdings, Inc. United States 14.00‐16.00 12.00 13.84, up 32% 16.27 17.6%
Oct‐13 SEHK:484 Forgame Holdings Limited China 5.60‐7.09 6.58 8.70, up 32% 1.91 (78.0%)
Oct‐13 NasdaqGS:SFXE SFX Entertainment Inc. United States 11.00‐13.00 13.00 11.89, down 9% 5.02 (57.8%) Oct‐13 NYSE:VEEV Veeva Systems Inc. United States 12.00‐14.00 20.00 37.16, up 86% 28.17 (24.2%)
8| M&A and Investment Summary September 2014 Digital Media/Commerce
. Of the total $4.5 billion in value reported in the Digital Media/Commerce segment, $3.4 billion in strategic transactions were reported, while another $1 billion of Venture/Growth Capital investments were made . eCommerce was the most active subsegment across all segments, with 27 transactions announced, respectively, of which 18 were reported worth $1.3 billion . Select acquisitions: • Microsoft’s $2.5 billion purchase of Sweden‐based gaming company Mojang, the maker of Minecraft • The $565 million acquisition of Bluestem Brands, which operates as a multi‐channel retailer of a selection of name brand and private label general merchandise, Capmark Financial Group . Select investments: • The $250 million investment in Vice Media from Technology Crossover Ventures, in exchange for a 10 percent equity stake
DIGITAL MEDIA/COMMERCE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM eCommerce 27 32% $1,259.7 28% 9 $707.7 0 ‐ 18 $552.0 Mobile Content/Apps 19 22% 27.6 1% 8 ‐ 0 ‐ 11 27.6 Social Media/Apps 16 19% 55.9 1% 7 ‐ 0 ‐ 9 55.9 Niche Content 11 13% 345.7 8% 4 ‐ 0 ‐ 7 345.7 Gaming 7 8% 2,724.4 61% 3 2,718.3 0 ‐ 46.1 Classifieds/Auctions/P‐to‐P 5 6% 47.7 1% 1 ‐ 0 ‐ 4 47.7 Domain Portfolio/Marketplace 0 0% ‐ 0% 0 ‐ 0 ‐ 0 ‐ Virtual Goods 0 0% ‐ 0% 0 ‐ 0 ‐ 0 ‐ Web Search/Portals 0 0% ‐ 0% 0 ‐ 0 ‐ 0 ‐ Total 85 100% 4,461.0 100% 32 3,426.0 0 0.0 53 1,035.0
9| M&A and Investment Summary September 2014 Digital Media/Commerce Public Company Valuation (1/3)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 1‐800‐Flowers.com Inc. United States $7.19 ‐15% $ 459.8 $ 457.9 $ 756.3 $ 43.6 5.8% 2.8% 0.6x 10.5x 58.com Inc. * China 37.25 ‐37% 3,269.0 2,854.7 199.7 28.9 14.5% 86.7% 14.3x 98.7x Alibaba Group Holding Limited China 88.85 ‐11% 219,015.8 220,155.8 9,365.9 4,829.1 51.6% 0.0% 23.5x 45.6x Amazon.com Inc. United States 322.44 ‐21% 148,978.9 144,111.9 81,759.0 4,018.0 4.9% 22.3% 1.8x 35.9x AOL Inc. United States 44.95 ‐16% 3,536.2 3,648.2 2,430.4 441.2 18.2% 9.9% 1.5x 8.3x Baidu, Inc. China 218.23 ‐6% 76,513.5 72,873.6 6,498.9 2,494.3 38.4% 52.8% 11.2x 29.2x Blucora, Inc. United States 15.24 ‐49% 626.7 596.6 649.2 113.9 17.5% 37.3% 0.9x 5.2x Blue Nile Inc. United States 28.55 ‐42% 337.9 299.0 455.2 16.3 3.6% 5.6% 0.7x 18.3x CafePress Inc. United States 3.13 ‐55% 54.2 36.6 240.5 3.7 1.5% 2.0% 0.2x 9.9x Care.com, Inc. * United States 8.15 ‐72% 255.6 142.2 95.3 (30.9) NM 0.0% 1.5x NM CDW Corporation United States 31.05 ‐8% 5,344.4 8,554.6 11,335.9 756.4 6.7% 8.8% 0.8x 11.3x Chegg, Inc. United States 6.24 ‐45% 522.2 463.0 277.6 17.4 6.3% 16.8% 1.7x 26.5x Copart, Inc. United States 31.32 ‐17% 3,953.3 4,099.3 1,163.5 393.2 33.8% 11.2% 3.5x 10.4x Cupid plc * United Kingdom 0.44 ‐60% 31.6 13.4 27.7 (7.2) NM ‐43.6% 0.5x NM CyberAgent Inc. Japan 35.10 ‐30% 2,192.6 2,059.7 1,729.4 210.5 12.2% 19.0% 1.2x 9.8x Demand Media, Inc. United States 8.85 ‐72% 162.8 105.0 372.4 18.1 4.9% ‐7.6% 0.3x 5.8x DeNA Co., Ltd. Japan 12.72 ‐45% 1,648.1 1,203.7 1,504.1 472.8 31.4% ‐20.3% 0.8x 2.5x eBay Inc. United States 56.63 ‐5% 70,289.9 68,241.9 17,050.0 4,972.0 29.2% 13.5% 4.0x 13.7x E‐Commerce China Dangdang Inc. * China 12.20 ‐36% 984.4 723.6 1,171.9 6.5 0.6% 25.6% 0.6x 111.4x eLong Inc. * China 20.58 ‐14% 726.2 434.9 178.6 (22.7) NM 27.8% 2.4x NM Everyday Health, Inc. United States 13.97 ‐30% 424.4 409.3 167.1 14.9 8.9% 0.0% 2.4x 27.6x Expedia Inc. United States 87.62 ‐2% 11,144.2 10,625.7 5,248.9 734.0 14.0% 19.5% 2.0x 14.5x Facebook, Inc. United States 79.04 ‐1% 205,508.1 191,878.1 10,013.0 5,425.0 54.2% 63.7% 19.2x 35.4x Forgame Holdings Limited China 1.91 ‐80% 243.0 63.0 154.2 29.2 18.9% ‐5.6% 0.4x 2.2x G5 Entertainment AB (publ) * Sweden 3.80 ‐41% 33.4 30.0 17.9 (1.2) NM 38.4% 1.7x NM GameLoft SE France 6.59 ‐38% 564.2 492.8 294.5 33.2 11.3% 5.7% 1.7x 14.8x Geeknet, Inc. * United States 9.30 ‐54% 62.4 17.2 142.8 (1.7) NM 14.1% 0.1x NM Glu Mobile, Inc. * United States 5.17 ‐32% 497.8 426.3 142.1 (3.4) NM 40.0% 3.0x NM Google Inc. United States 588.41 ‐4% 394,258.6 344,270.6 65,142.0 19,424.0 29.8% 21.1% 5.3x 17.7x Gree, Inc. Japan 6.82 ‐45% 1,608.2 1,111.2 1,145.1 382.9 33.4% ‐17.5% 1.0x 2.9x GrubHub Inc. * United States 34.24 ‐25% 2,742.0 2,534.9 203.1 44.3 21.8% 0.0% 12.5x 57.2x Hollywood Media Corp. * United States 1.28 ‐34% 29.0 6.1 0.4 (4.8) NM ‐31.1% 14.3x NM HSN, Inc. United States 61.37 ‐3% 3,210.7 3,322.9 3,451.4 297.8 8.6% 3.1% 1.0x 11.2x IAC/InterActiveCorp United States 65.90 ‐18% 5,495.2 5,532.3 2,977.9 514.2 17.3% ‐1.4% 1.9x 10.8x iDreamSky Technology Limited China 17.01 ‐34% 719.9 694.5 64.9 13.5 20.8% 0.0% 10.7x 51.3x International Game Technology United States 16.87 ‐15% 4,170.3 5,922.4 2,154.0 664.5 30.8% ‐8.0% 2.7x 8.9x iProperty Group Limited * Malaysia 2.40 ‐31% 436.8 423.7 19.4 0.3 1.4% 43.8% 21.8x NM j2 Global, Inc. United States 49.36 ‐12% 2,356.1 2,292.1 544.7 226.3 41.5% 21.0% 4.2x 10.1x Jiayuan.com International Ltd. China 6.56 ‐26% 195.8 106.3 88.2 6.0 6.9% 19.0% 1.2x 17.6x JobStreet Corp. Bhd. * Malaysia 0.83 ‐10% 578.5 563.4 2.4 1.6 68.1% NM 235.2x NM Jumei International Holding Limited China 23.48 ‐40% 3,360.7 2,783.4 572.5 79.1 13.8% 0.0% 4.9x 35.2x King Digital Entertainment plc Ireland 12.70 ‐46% 4,060.6 3,228.4 2,423.2 878.7 36.3% 213.8% 1.3x 3.7x 10 | M&A and Investment Summary September 2014 Digital Media/Commerce Public Company Valuation (2/3)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Kongzhong Corp. China 6.52 ‐48% $ 299.1 $ 105.1 $ 191.9 $ 17.6 9.1% 7.9% 0.5x 6.0x LifeLock, Inc. United States 14.29 ‐37% 1,325.8 1,109.7 421.3 22.0 5.2% 30.6% 2.6x 50.4x Liberty Interactive Corporation United States 28.52 ‐7% 13,726.4 23,492.4 11,487.0 2,030.0 17.7% 7.5% 2.0x 11.6x LightInTheBox Holding Co., Ltd. * China 6.25 ‐50% 318.1 223.7 318.2 (22.6) NM 21.8% 0.7x NM LinkedIn Corporation * United States 207.79 ‐18% 25,539.4 23,177.7 1,847.2 196.4 10.6% 48.5% 12.5x 118.0x Liquidity Services, Inc. United States 13.75 ‐56% 407.9 350.9 506.4 66.1 13.1% 1.5% 0.7x 5.3x MeetMe, Inc. * United States 1.97 ‐55% 88.1 87.0 43.3 (0.5) NM 6.9% 2.0x NM Mercadolibre, Inc. Argentina $108.65 ‐26% 4,797.3 4,591.2 504.9 181.1 35.9% 21.4% 9.1x 25.4x Mixi, Inc. * Japan 50.05 ‐18% 4,164.5 3,978.5 207.2 53.2 25.7% 102.3% 19.2x 74.8x NCsoft Corporation South Korea 125.40 ‐47% 2,502.7 1,823.6 719.5 216.2 30.1% ‐8.4% 2.5x 8.4x Netflix, Inc. * United States 451.18 ‐8% 27,111.9 26,297.5 4,891.7 416.3 8.5% 24.0% 5.4x 63.2x NEXON Co., Ltd. Japan 8.25 ‐29% 3,545.1 2,707.7 1,447.2 571.6 39.5% 16.6% 1.9x 4.7x Orbitz Worldwide, Inc. United States 7.87 ‐21% 867.6 1,055.1 876.7 131.1 14.9% 7.3% 1.2x 8.1x Overstock.com Inc. United States 16.86 ‐46% 405.1 303.2 1,372.8 18.5 1.3% 14.2% 0.2x 16.4x Pacific Online Ltd. China 0.54 ‐39% 595.8 550.2 148.3 55.3 37.3% 20.1% 3.7x 9.9x Pandora Media, Inc. * United States 24.16 ‐40% 4,988.8 4,664.5 799.8 (11.3) NM 0.0% 5.8x NM PC Home Online Inc. Taiwan 9.70 ‐13% 842.4 717.9 592.1 29.2 4.9% 18.9% 1.2x 24.6x Perform Group plc. United Kingdom 4.13 ‐54% 1,088.6 1,030.1 374.7 47.5 12.7% 32.7% 2.7x 21.7x PetMed Express, Inc. United States 13.60 ‐20% 274.6 229.9 231.7 29.4 12.7% ‐0.6% 1.0x 7.8x Phoenix New Media Limited China 9.35 ‐31% 691.5 467.9 252.0 49.9 19.8% 25.3% 1.9x 9.4x The Priceline Group Inc. United States 1,158.58 ‐16% 60,765.2 55,407.5 7,576.4 2,890.8 38.2% 28.9% 7.3x 19.2x Rakuten, Inc. Japan 11.51 ‐31% 15,214.3 15,938.1 5,053.5 1,053.8 20.9% 14.6% 3.2x 15.1x RealNetworks Inc. * United States 6.95 ‐22% 250.2 55.1 186.1 (48.7) NM ‐20.1% 0.3x NM Rediff.com India Limited * India 2.28 ‐41% 62.9 45.8 16.1 (9.5) NM ‐0.1% 2.8x NM Renren Inc. * China 3.44 ‐28% 1,235.4 348.8 115.5 (94.0) NM ‐40.9% 3.0x NM Shutterfly, Inc. United States 48.74 ‐16% 1,875.9 1,846.4 829.7 81.9 9.9% 18.4% 2.2x 22.5x Shutterstock, Inc. United States 71.38 ‐31% 2,522.4 2,286.5 280.6 45.9 16.4% 40.8% 8.1x 49.8x Sky‐mobi Limited * China 8.13 ‐36% 243.4 141.1 86.4 1.7 2.0% ‐7.4% 1.6x 82.3x SNAP Interactive, Inc. * United States 0.35 ‐55% 13.6 13.5 12.7 (3.8) NM ‐14.6% 1.1x NM Spark Networks, Inc. * United States 4.64 ‐42% 111.3 101.2 66.9 (7.7) NM ‐0.1% 1.5x NM Sportsman's Warehouse Holdings, United States 6.74 ‐39% 281.6 511.4 642.7 59.0 9.2% 0.0% 0.8x 8.7x Stamps.com Inc. United States 31.76 ‐36% 504.2 464.3 131.2 36.3 27.7% 6.4% 3.5x 12.8x Taomee Holdings Ltd. China 4.36 ‐51% 154.3 50.2 49.0 4.6 9.3% 19.6% 1.0x 11.0x TheStreet, Inc. * United States 2.24 ‐26% 77.1 20.8 57.5 (0.1) NM 11.7% 0.4x NM Twitter, Inc. United States 16.46 ‐7% 1,977.0 5,159.0 2,114.0 454.0 21.5% 0.0% 2.4x 11.4x Twitter, Inc. * United States 51.58 ‐31% 31,291.4 29,396.1 973.9 (711.5) NM 117.3% 30.2x NM U.S. Auto Parts Network, Inc. United States 2.82 ‐31% 94.6 101.8 266.4 7.2 2.7% ‐1.0% 0.4x 14.1x United Online, Inc. United States 10.95 ‐82% 155.2 84.8 228.9 14.9 6.5% NM 0.4x 5.7x ValueVision Media Inc. United States 5.13 ‐27% 283.6 300.9 656.9 12.9 2.0% 6.8% 0.5x 23.4x
11 | M&A and Investment Summary September 2014 Digital Media/Commerce Public Company Valuation (3/3)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Vipshop Holdings Limited * China 189.01 ‐18% $ 10,722.3 $ 10,178.6 $ 2,566.1 $ 105.2 4.1% 129.6% 4.0x 96.8x WebMD Health Corp. United States 41.81 ‐22% 1,532.8 1,703.7 551.4 99.1 18.0% 12.9% 3.1x 17.2x Weibo Corporation * China 18.69 ‐28% 3,686.4 3,208.0 269.6 1.0 0.4% 0.0% 11.9x NM XO Group Inc. United States 11.21 ‐29% 301.4 222.1 137.3 14.6 10.6% 4.7% 1.6x 15.2x Yahoo! Inc. * United States 40.75 ‐7% 40,530.1 39,002.3 4,621.7 772.6 16.7% ‐4.2% 8.4x 50.5x Yandex N.V. Netherlands 27.80 ‐39% 8,836.7 8,755.4 1,137.1 430.1 37.8% 36.2% 7.7x 20.4x YY Inc. China 74.89 ‐22% 4,186.0 3,785.7 424.6 135.3 31.9% 113.7% 8.9x 28.0x zulily, Inc. * United States 37.89 ‐48% 4,732.0 4,421.4 946.6 23.6 2.5% 98.7% 4.7x 187.0x Zynga, Inc. * United States 2.70 ‐54% 2,418.8 1,691.6 700.2 (17.8) NM ‐37.6% 2.4x NM
Average 4.1x 16.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (56.9x) and EBITDA multiples that are 1.0 standard deviations above the mean (60.9x)
*Yahoo! multiples based on Petsky Prunier estimates. Yahoo’s ownership interest in Alibaba and Yahoo! Japan equals approximately 90% of the enterprise value of Yahoo!., enterprise value reflects Adjusted Enterprise Value.
12 | M&A and Investment Summary September 2014 Digital Advertising
. There were a total of 42 transactions announced (21 acquisitions and 21 investments) in the Digital Advertising segment worth a total of $7.2 billion in aggregate reported value . Select acquisitions: • Alliance Data Systems’ pending $2.3 billion purchase of digital marketing services company Conversant, at a valuation of 4.0x revenue and 12.0x EBITDA • Gannett’s acquisition of the remaining 73 percent stake in Cars.com for $1.8 billion • The $950 million purchase of Move, which operates an online network of Websites for real estate search, by News Corporation at a valuation of 4.4x revenue . Select Investments: • The $50 million Institutional Venture Partners‐led investment in mobile location‐based solutions provider xAd, a combination of equity and debt reportedly valuing the company at $250 million
DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Vertical Search 9 21% $63.6 1% 2 $2.0 0 ‐ 7 $61.6 Digital Video 8 19% 45.0 1% 3 ‐ 0 ‐ 5 45.0 Ad Networks/Exchanges 4 10% 112.0 2% 3 108.0 0 ‐ 14.0 Mobile Marketing 4 10% 54.4 1% 1 ‐ 0 ‐ 3 54.4 Online Lead Generation 4 10% 3,530.8 49% 4 3,530.8 0 ‐ 0 ‐ Comparison Shopping 3 7% 4.0 0% 0 ‐ 1 ‐ 24.0 Digital Promotion/Coupon 3 7% 1,012.0 14% 2 1,000.0 0 ‐ 1 12.0 Other* 7 17% 2,410.4 33% 5 2,365.3 0 ‐ 2 26.1 Total 42 100% 7,232.2 100% 20 7,025.1 1 0.0 21 207.1 *Other includes Affiliate/CPA Network, Game Advertising, Email Services, Local Search, and Search Marketing 13 | M&A and Investment Summary September 2014 Digital Advertising Public Company Valuation (1/2)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Angie's List, Inc. United States $6.37 ‐70% $ 372.7 $ 331.2 $ 285.8 $ (23.5) NM 43.2% 1.2x NM AOL Inc. United States 44.95 ‐16% 3,536.2 3,648.2 2,430.4 441.2 18.2% 9.9% 1.5x 8.3x Autobytel Inc. United States 8.59 ‐54% 77.6 76.2 95.2 7.2 7.5% 35.2% 0.8x 10.6x Bankrate, Inc. United States 11.36 ‐51% 1,186.4 1,307.4 510.6 118.6 23.2% 20.4% 2.6x 11.0x Blinkx plc United States 0.57 ‐85% 229.0 105.5 247.2 30.9 12.5% 24.9% 0.4x 3.4x Blucora, Inc. United States 15.24 ‐49% 626.7 596.6 649.2 113.9 17.5% 37.3% 0.9x 5.2x Constant Contact, Inc. United States 27.14 ‐20% 860.6 720.6 307.1 33.8 11.0% 14.4% 2.3x 21.3x Conversant, Inc. United States 34.25 ‐3% 2,194.7 2,176.1 593.8 197.7 33.3% 6.0% 3.7x 11.0x Coupons.com Incorporated United States 11.96 ‐64% 928.3 729.8 195.5 (12.9) NM 0.0% 3.7x NM Criteo SA France 33.65 ‐45% 1,992.2 1,678.0 716.3 53.5 7.5% 60.8% 2.3x 31.4x Ctrip.com International Ltd. * China 56.76 ‐19% 7,729.4 7,440.5 1,023.9 125.9 12.3% 34.3% 7.3x 59.1x Demand Media, Inc. United States 8.85 ‐73% 162.8 105.0 372.4 18.1 4.9% ‐7.6% 0.3x 5.8x Dice Holdings, Inc. United States 8.38 ‐10% 454.7 551.4 238.3 67.1 28.2% 17.2% 2.3x 8.2x Digital Globe Services Inc. United States 2.58 ‐44% 77.2 77.3 38.9 4.0 10.2% 52.5% 2.0x 19.5x eHealth, Inc. United States 24.13 ‐62% 428.7 358.3 189.7 8.8 4.6% 14.4% 1.9x 40.9x Google Inc. United States 588.41 ‐4% 394,258.6 344,270.6 65,142.0 19,424.0 29.8% 21.1% 5.3x 17.7x Groupon, Inc. United States 6.68 ‐46% 4,471.1 3,600.9 2,872.7 94.0 3.3% 18.9% 1.3x 38.3x Hi‐Media S.A. France 3.28 ‐12% 147.6 55.7 224.8 2.7 1.2% ‐4.7% 0.2x 20.7x HomeAway, Inc. United States 35.50 ‐27% 3,336.6 2,861.3 400.4 65.5 16.3% 28.8% 7.1x 43.7x IAC/InterActiveCorp United States 65.90 ‐18% 5,495.2 5,532.3 2,977.9 514.2 17.3% ‐1.4% 1.9x 10.8x InternetQ PLC United Kingdom 3.72 ‐44% 148.2 141.0 160.4 18.1 11.3% 52.0% 0.9x 7.8x Just Dial Limited * India 26.34 ‐14% 1,848.3 1,766.2 79.4 22.1 27.9% 27.5% 22.2x 79.8x LeGuide.com S.A. France 40.39 ‐20% 146.0 109.3 53.6 4.7 8.8% ‐11.9% 2.0x 23.3x MakeMyTrip Limited India 27.83 ‐23% 1,159.9 1,088.9 273.1 (9.5) NM 12.9% 4.0x NM Millennial Media Inc. United States 1.86 ‐78% 200.2 107.8 292.7 (13.8) NM 38.2% 0.4x NM Monster Worldwide, Inc. United States 5.50 ‐35% 488.5 661.9 788.1 86.2 10.9% ‐6.6% 0.8x 7.7x Move, Inc. * United States 20.96 ‐1% 842.0 808.8 234.6 6.9 2.9% 9.7% 3.4x 117.8x Opera Software ASA Norway 14.00 ‐5% 1,978.1 1,923.8 352.6 86.3 24.5% 39.9% 5.5x 22.3x Pacific Online Ltd. China 0.54 ‐39% 595.4 549.8 148.3 55.4 37.3% 20.1% 3.7x 9.9x QuinStreet, Inc. United States 4.15 ‐57% 184.2 138.7 282.5 11.2 3.9% ‐7.4% 0.5x 12.4x ReachLocal, Inc. United States 3.61 ‐75% 104.3 39.8 514.0 (7.5) NM 5.5% 0.1x NM RetailMeNot, Inc. United States 16.16 ‐67% 872.2 694.4 246.7 71.9 29.1% 46.0% 2.8x 9.7x Rightmove plc * United Kingdom 34.91 ‐24% 3,415.2 3,405.3 248.5 181.6 73.1% 19.0% 13.7x 18.7x Rocket Fuel Inc. United States 15.80 ‐78% 566.5 397.2 315.1 (17.2) NM 97.4% 1.3x NM Rovi Corporation United States 19.75 ‐22% 1,870.5 2,586.5 555.7 194.8 35.1% 19.8% 4.7x 13.3x Septeni Holdings Co., Ltd. Japan 11.60 ‐18% 294.3 242.7 477.0 22.9 4.8% 17.6% 0.5x 10.6x TiVo Inc. United States 12.80 ‐10% 1,478.7 868.6 442.5 68.4 15.4% 25.2% 2.0x 12.7x TradeDoubler AB Sweden 1.22 ‐61% 51.6 32.9 254.9 1.2 0.5% ‐12.9% 0.1x 27.1x Travelzoo Inc. United States 15.50 ‐44% 228.3 167.8 151.8 24.9 16.4% ‐2.7% 1.1x 6.7x Tree.Com, Inc. United States 35.89 0% 405.8 318.2 155.9 12.2 7.8% 38.3% 2.0x 26.1x Tremor Video, Inc. United States 2.34 ‐79% 118.9 35.2 150.1 (14.2) NM 22.1% 0.2x NM 14 | M&A and Investment Summary September 2014 Digital Advertising Public Company Valuation (2/2)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA TripAdvisor Inc. United States 91.42 ‐18% $ 13,053.4 $ 12,768.4 $ 1,071.7 $ 331.8 31.0% 24.7% 11.9x 38.5x TrueCar, Inc. United States 17.95 ‐28% 1,379.5 1,267.7 172.1 (30.2) NM 0.0% 7.4x NM Trulia, Inc. United States $48.90 ‐28% 1,824.4 1,839.6 208.6 (26.4) NM 124.7% 8.8x NM TubeMogul, Inc. United States 11.50 ‐22% 342.4 331.9 85.7 (0.7) NM 0.0% 3.9x NM Velti Plc Ireland 0.02 ‐95% 1.8 14.1 232.1 (136.5) NM ‐1.6% 0.1x NM Voltari Corporation United States 1.51 ‐73% 7.1 25.3 11.7 (16.2) NM 363.1% 2.2x NM Web.com Group, Inc. United States 19.96 ‐47% 1,047.9 1,560.5 528.3 106.2 20.1% 16.6% 3.0x 14.7x Yahoo! Inc. United States 40.75 ‐7% 40,530.1 6,136.5 4,621.7 772.6 16.7% ‐4.2% 1.3x 7.9x Yelp, Inc. * United States 68.25 ‐33% 4,919.6 4,568.7 297.0 6.5 2.2% 66.2% 15.4x NM Yandex N.V. Netherlands 27.80 ‐39% 8,836.7 8,755.4 1,147.5 434.0 37.8% 36.2% 7.6x 20.2x Youku Tudou Inc. China 17.92 ‐53% 3,732.4 2,098.0 556.8 61.4 11.0% 42.0% 3.8x 34.2x YuMe, Inc. * United States 5.00 ‐52% 163.3 102.3 167.9 1.3 0.8% 26.8% 0.6x 80.6x Zhaopin Ltd. China 12.97 ‐23% 647.7 527.5 172.3 40.2 23.3% 24.8% 3.1x 13.1x Zillow, Inc. * United States 115.99 ‐30% 4,646.7 4,288.6 256.6 (5.0) NM 68.6% 16.7x NM
Average 2.7x 17.4x
*Calculati on 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 (47.6x) *Yahoo! multiples based on Petsky Prunier estimates. Yahoo’s ownership interest in Alibaba and Yahoo! Japan equals approximately 90% of the enterprise value of Yahoo!., enterprise value reflects Adjusted Enterprise Value.
15 | M&A and Investment Summary September 2014 Marketing Technology
. Analytics & Targeting was the most active Marketing Technology subsegment with 19 transactions announced, worth a total of $113 million in aggregate reported value. While, BI Tools was the highest reported value subsegment with six deals worth $4.5 billion, including Vista Equity Partners’ $4.3 billion acquisition of TIBCO Software . Select acquisitions: • PAR Technology’s acquisition of Brink Software, which provides cloud‐based point of sale (POS) software for restaurants, for an undisclosed amount . Select investments: • Accel Partners’ $60 million investment in Hootsuite Media, a provider of social media management solutions • BlueRun Ventures and Formation8’s $55 million co‐led investment in sales and marketing intelligence provider Radius
MARKETING TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Analytics & Targeting 19 26% $112.7 2% 6 ‐ 0 ‐ 13 $112.7 Commerce Management 9 12% 63.0 1% 4 ‐ 0 ‐ 563.0 Mobile Technology 9 12% 244.5 5% 6 233.0 0 ‐ 311.5 Social Technology 7 10% 102.5 2% 4 ‐ 0 ‐ 3102.5 BI Tools 6 8% 4,452.0 86% 1 ‐ 1 4,300.0 4 152.0 Content Management 6 8% 2.3 0% 4 ‐ 0 ‐ 22.3 MRM/Workflow Management 4 5% 54.0 1% 1 ‐ 0 ‐ 354.0 Other* 13 18% 146.6 3% 5 31.0 0 ‐ 8113.3 Total 73 100% 5,177.6 100% 31 264.0 1 4,300.0 41 613.6
*Other includes Content Delivery Network, CRM, Email/Messaging Software, Media Management System, Product/Price Software, Search & Discovery, SEM/SEO Tools, SFA/Lead Management, Teleservices/eServices, and Web to Print
16 | M&A and Investment Summary September 2014 Marketing Technology Public Company Valuation (1/2)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Actuate Corporation United States 3.90 ‐53% 180.8 121.8 115.3 2.5 2.2% ‐16.2% 1.1x 48.9x Adobe Systems Inc. United States 69.19 ‐7% 34,507.8 32,495.8 4,115.4 710.6 17.3% ‐1.2% 7.9x 45.7x Bazaarvoice, Inc. United States 7.39 ‐30% 576.7 511.1 173.8 (30.2) NM 14.7% 2.9x NM Bitauto Holdings Limited China 78.00 ‐21% 3,236.8 3,059.0 283.1 66.7 23.5% 43.7% 10.8x 45.9x Blackbaud Inc. United States 39.29 ‐7% 1,774.4 1,922.3 529.7 103.6 19.6% 9.5% 3.6x 18.6x Borderfree, Inc. * United States 12.90 ‐39% 406.5 285.8 116.6 1.3 1.1% 17.4% 2.5x 228.2x Brightcove, Inc. United States 5.58 ‐66% 179.8 160.4 120.4 (1.1) NM 22.8% 1.3x NM ChannelAdvisor Corporation United States 16.40 ‐67% 405.7 325.6 77.2 (23.4) NM 28.9% 4.2x NM ChinaCache International Holdings China 13.78 ‐53% 349.5 259.4 209.3 6.6 3.2% 39.3% 1.2x 39.2x Constant Contact, Inc. United States 27.14 ‐20% 860.6 720.6 307.1 33.8 11.0% 14.4% 2.3x 21.3x Covisint Corporation United States 4.15 ‐72% 157.3 114.1 94.6 (40.8) NM 0.4% 1.2x NM Cvent, Inc. * United States 25.37 ‐43% 1,072.7 882.3 125.4 5.8 4.6% 29.6% 7.0x 152.1x Dealertrack Technologies, Inc. United States 43.41 ‐26% 2,339.5 2,932.2 634.3 76.2 12.0% 46.9% 4.6x 38.5x Demandware, Inc. * United States 50.92 ‐38% 1,839.7 1,583.9 128.3 (17.5) NM 44.5% 12.3x NM Digital River Inc. United States 14.52 ‐26% 464.3 207.4 373.7 34.2 9.2% ‐3.3% 0.6x 6.1x E2open, Inc. United States 9.31 ‐69% 270.9 225.0 74.7 (21.8) NM ‐0.5% 3.0x NM eBay Inc. United States 56.63 ‐5% 70,289.9 68,241.9 17,050.0 4,972.0 29.2% 13.5% 4.0x 13.7x Endurance International Group United States 16.27 ‐4% 2,102.1 3,185.1 567.1 82.8 14.6% 25.6% 5.6x 38.5x Five9, Inc. United States 6.54 ‐30% 316.6 272.5 93.7 (24.8) NM 0.0% 2.9x NM Informatica Corporation United States 34.24 ‐22% 3,766.5 3,080.3 1,005.2 184.5 18.4% 16.6% 3.1x 16.7x Infosystems S.A. Poland 0.88 ‐17% 3.6 3.4 2.6 2.4 92.9% ‐0.9% 1.3x 1.4x Interactive Intelligence Group Inc. United States 41.80 ‐49% 876.7 803.5 328.0 10.7 3.3% 17.4% 2.4x 75.1x IBM Corporation United States 189.83 ‐5% 189,372.9 226,253.9 98,267.0 25,160.0 25.6% ‐4.0% 2.3x 9.0x Jive Software, Inc. United States 5.83 ‐56% 415.6 322.8 161.1 (56.8) NM 23.4% 2.0x NM LivePerson Inc. United States 12.59 ‐17% 677.1 605.8 191.0 8.2 4.3% 13.8% 3.2x 73.5x Marin Software Incorporated United States 8.60 ‐33% 299.3 220.1 88.6 (27.0) NM 30.5% 2.5x NM Marketo, Inc. United States 32.30 ‐28% 1,317.0 1,205.4 122.0 (42.0) NM 63.7% 9.9x NM Mercadolibre, Inc. Argentina 108.65 ‐26% 4,797.3 4,591.2 504.9 181.1 35.9% 21.4% 9.1x 25.4x MicroStrategy Inc. United States 130.84 ‐16% 1,478.6 1,111.1 587.6 29.9 5.1% 4.9% 1.9x 37.1x NetSuite Inc. * United States 89.54 ‐26% 6,842.6 6,633.2 476.6 (38.6) NM 33.4% 13.9x NM Nuance Communications, Inc. United States 15.42 ‐21% 4,924.3 6,411.8 1,893.4 172.1 9.1% 2.2% 3.4x 37.3x Open Text Corporation Canada 55.42 ‐6% 6,749.5 7,641.2 1,624.7 448.1 27.6% 19.2% 4.7x 17.1x Opera Software ASA Norway 14.00 ‐5% 1,978.1 1,923.8 352.6 86.3 24.5% 39.9% 5.5x 22.3x Oracle Corporation United States 38.28 ‐11% 169,630.3 151,161.3 38,499.0 16,826.0 43.7% 3.0% 3.9x 9.0x PROS Holdings, Inc. United States 25.20 ‐39% 730.4 702.5 161.0 (0.9) NM 22.1% 4.4x NM PTC Inc. United States 36.90 ‐9% 4,328.7 4,339.5 1,335.1 315.9 23.7% 4.8% 3.3x 13.7x Qlik Technologies, Inc. * United States 27.04 ‐24% 2,431.6 2,176.5 508.6 8.5 1.7% 18.8% 4.3x 257.4x Rovi Corporation United States 19.75 ‐22% 1,870.5 2,586.5 555.7 194.8 35.1% 19.8% 4.7x 13.3x The Rubicon Project, Inc. United States 11.73 ‐49% 420.7 315.2 99.5 (8.1) NM 0.0% 3.2x NM Sage Group plc United Kingdom 5.93 ‐17% 6,372.7 6,957.8 2,148.6 633.8 29.5% ‐3.7% 3.2x 11.0x Salesforce.com, Inc United States 57.53 ‐14% 35,611.1 37,113.7 4,766.6 3.1 0.1% 37.3% 7.8x NM 17 | M&A and Investment Summary September 2014 Marketing Technology Public Company Valuation (2/2)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA SAP SE Germany 72.06 ‐9% $ 86,080.9 $ 87,471.7 $ 21,456.4 $ 7,404.6 34.5% 2.2% 4.1x 11.8x Sizmek Inc. United States 7.74 ‐42% 235.3 141.6 168.2 19.5 11.6% 0.0% 0.8x 7.3x Sky‐mobi Limited China 8.13 ‐36% 243.4 141.1 86.4 1.7 2.0% ‐7.4% 1.6x 82.3x Sungy Mobile Limited China 6.52 ‐81% 218.1 93.8 62.9 12.7 20.1% 54.5% 1.5x 7.4x Synchronoss Technologies, Inc. United States 45.78 ‐2% 1,913.5 1,842.3 388.9 100.1 25.7% 27.8% 4.7x 18.4x Tableau Software, Inc. * United States 72.65 ‐29% 4,991.1 4,363.8 307.8 15.4 5.0% 87.8% 14.2x 284.0x Teradata Corporation United States 41.92 ‐24% 6,497.6 5,788.6 2,739.0 635.0 23.2% 3.6% 2.1x 9.1x TIBCO Software Inc. United States 23.63 ‐12% 3,871.8 3,891.6 1,076.2 167.9 15.6% 2.4% 3.6x 23.2x Verint Systems Inc. United States 55.61 ‐3% 3,368.3 3,883.2 1,014.3 146.8 14.5% 18.3% 3.8x 26.4x Weborama France 9.25 ‐39% 32.3 30.9 34.2 2.2 6.5% ‐1.9% 0.9x 13.8x Wix.com ltd Israel 16.25 ‐50% 618.9 521.9 109.1 (43.6) NM 85.3% 4.8x NM Zendesk, Inc. * United States 21.59 ‐23% 1,562.7 1,441.1 96.3 (36.8) NM 0.0% 15.0x NM
Adjusted Weighted Average 4.0x 13.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (117.7x)
18 | M&A and Investment Summary September 2014 Agency & Marketing Services
. There were 25 transactions announced in the Agency & Marketing Services segment in September. Digital Agency was the most active subsegment with seven transactions announced, respectively . Select acquisitions: • Blackhawk Network’s acquisition of Parago, a provider of customer incentive and engagement solutions, for approximately $290 million • Publicis Groupe’s purchase of Nurun, which operates as a global technology consultancy company and offers digital design to businesses, from Quebecor Media for $114 million at a valuation of 0.9x revenue . Select investments: • The $26 million Menlo Ventures‐led investment in FiveStars, a provider of digital loyalty rewards programs for small merchant
AGENCY & MARKETING SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Agency 7 28% $120.4 24% 6 $114.4 0 ‐ 1 $6.0 Loyalty/Retention 5 20% 316.0 63% 4 290.0 0 ‐ 1 26.0 Public Relations 3 12% ‐ 0% 3 ‐ 0 ‐ 0 ‐ Social Agency 2 8% ‐ 0% 2 ‐ 0 ‐ 0 ‐ Branded Communications 1 4% 37.0 7% 0 ‐ 0 ‐ 1 37.0 B‐to‐B Agency 1 4% ‐ 0% 1 ‐ 0 ‐ 0 ‐ Database/Analytics 1 4% 16.5 3% 0 ‐ 0 ‐ 1 16.5 Design Agency 1 4% ‐ 0% 1 ‐ 0 ‐ 0 ‐ Other* 4 16% 10.2 2% 3 0.2 0 0.0 1 10.0 Total 25 100% 500.1 0% 20 404.6 0 0.0 5 95.5 *Other includes DM Agency, Marketing Consulting, Performance/Contract Sales, and Product/Price Consulting
19 | M&A and Investment Summary September 2014 Agency Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Cello Group Plc United Kingdom $1.50 ‐3% $ 127.0 $ 143.7 $ 270.0 $ 18.1 6.7% 15.5% 0.5x 7.9x Chime Communications plc United Kingdom 4.74 ‐23% 465.8 544.9 579.9 33.8 5.8% 12.8% 0.9x 16.1x Creston plc United Kingdom 1.85 ‐2% 109.7 97.8 121.5 18.5 15.3% ‐0.4% 0.8x 5.3x Dentsu Inc. Japan 38.06 ‐6% 10,974.8 12,499.1 21,270.6 1,261.0 5.9% 16.2% 0.6x 9.9x Enero Group Limited Australia 1.02 ‐10% 87.6 71.3 186.3 8.3 4.5% ‐14.1% 0.4x 8.5x Globant S.A. * Luxembourg 14.07 ‐5% 469.2 458.5 179.1 20.5 11.4% 24.7% 2.6x 22.4x Havas France 7.73 ‐6% 3,187.5 3,610.3 2,265.4 346.8 15.3% ‐0.7% 1.6x 10.4x Huntsworth plc United Kingdom 0.79 ‐33% 250.7 308.4 270.2 39.7 14.7% ‐4.1% 1.1x 7.8x M&C Saatchi plc United Kingdom 4.45 ‐22% 299.5 287.8 266.9 28.2 10.6% 8.4% 1.1x 10.2x MDC Partners Inc. United States 19.24 ‐26% 954.2 1,858.7 1,206.0 113.5 9.4% 8.6% 1.5x 16.4x Next Fifteen Communications Group plc United Kingdom 1.97 ‐11% 119.4 132.6 160.2 17.3 10.8% 6.3% 0.8x 7.6x Omnicom Group Inc. United States 68.86 ‐10% 17,294.7 20,501.1 14,921.6 2,198.0 14.7% 3.7% 1.4x 9.3x OPT, Inc. Japan 6.99 ‐39% 180.6 112.8 584.7 43.9 7.5% ‐19.5% 0.2x 2.6x Porta Communications Plc * United Kingdom 0.13 ‐54% 30.3 37.1 52.1 0.9 1.6% 111.4% 0.7x 43.2x Publicis Groupe SA France 68.62 ‐23% 14,841.0 14,873.8 8,784.0 1,659.6 18.9% 1.2% 1.7x 9.0x Sapient Corp. United States 14.00 ‐22% 1,984.4 1,697.7 1,356.2 174.8 12.9% 14.1% 1.3x 9.7x The Interpublic Group of Companies, Inc. United States 18.32 ‐11% 7,720.0 8,856.1 7,312.0 871.3 11.9% 4.0% 1.2x 10.2x WPP plc United Kingdom 20.12 ‐21% 25,918.3 31,203.1 18,105.9 2,987.9 16.5% 4.0% 1.7x 10.4x
Adjusted Weighted Average 1.4x 9.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.0x)
20 | M&A and Investment Summary September 2014 Marketing Services Public Company Valuation
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $16.55 ‐58% $ 1,276.8 $ 1,194.4 $ 1,082.6 $ 181.3 16.7% ‐0.2% 1.1x 6.6x Aimia Inc. Canada 15.20 ‐15% 2,644.5 2,627.9 2,103.6 (94.8) NM 41.4% 1.2x NM Alliance Data Systems Corporation * United States 248.27 ‐17% 13,785.9 19,308.6 4,735.6 1,327.0 28.0% 19.4% 4.1x 14.6x CSG Systems International Inc. United States 26.28 ‐18% 911.6 982.4 753.3 120.6 16.0% ‐0.2% 1.3x 8.1x Data Group Ltd. Canada 0.49 ‐69% 11.6 98.4 278.1 20.3 7.3% ‐5.1% 0.4x 4.8x DST Systems Inc. United States 83.92 ‐16% 3,334.4 3,922.9 2,682.4 423.5 15.8% 2.0% 1.5x 9.3x Fair Isaac Corporation United States 55.10 ‐16% 1,771.4 2,208.3 757.7 197.1 26.0% 2.5% 2.9x 11.2x Harte‐Hanks Inc. United States 6.37 ‐32% 398.2 413.0 560.2 57.1 10.2% ‐1.9% 0.7x 7.2x High Co. SA France 5.91 ‐22% 61.4 25.1 168.4 14.7 8.7% 3.3% 0.1x 1.7x Insignia Systems Inc. United States 3.07 ‐12% 39.0 19.5 27.0 2.6 9.6% 8.2% 0.7x 7.6x Multiplus SA Brazil 12.03 ‐20% 1,950.8 1,423.6 707.8 134.3 19.0% 9.8% 2.0x 10.6x PDI, Inc. * United States 2.40 ‐62% 36.9 (1.7) 135.0 (8.3) NM ‐8.5% NM 0.2x Pitney Bowes Inc. United States 24.99 ‐12% 5,068.3 7,575.1 3,905.3 828.8 21.2% 2.1% 1.9x 9.1x Points International Ltd. * Canada 17.44 ‐45% 268.7 211.8 252.2 7.2 2.9% 63.8% 0.8x 29.3x Viad Corp United States 20.65 ‐29% 413.7 396.4 983.5 63.3 6.4% ‐5.6% 0.4x 6.3x
Adjusted Weighted Average 1.7x 11.7x
*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 (15.9x)
21 | M&A and Investment Summary September 2014 Traditional Media
. There were 11 transactions announced in the Traditional Media segment in September; all but three were strategic acquisitions, worth a total of $145 million in aggregate reported value . Select acquisitions: • Sinclair Broadcast Group’s purchase of KSNV‐TV, which is a Las Vegas’ NBC‐affiliated station, from Intermountain West for $120 million • Shamrock Capital Advisors’ purchase of Questex, a business information and events company . Select investments: • The $50 million investment in Spirit Music Group, an independent music publishing house owned by Pegasus Capital Advisors
TRADTIONAL MEDIA TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Entertainment 4 36% $50.0 23% 3 ‐ 0 ‐ 1$50.0 Broadcast Television 2 18% 120.0 56% 2 120.0 0 ‐ 0 ‐ B‐to‐B Media 1 9% ‐ 0% 0 ‐ 1 ‐ 0 ‐ Consumer Book Publishing 1 9% 24.5 11% 1 24.5 0 ‐ 0 ‐ Digital Place‐Based Media 1 9% 18.6 9% 0 ‐ 0 ‐ 118.6 Other* 2 18% 0.0 0% 2 ‐ 0 ‐ 0 ‐ Total 11 100% 213.1 100% 8 144.5 1 0.0 2 68.6
*Other includes Newspaper Publishing and Radio
22 | M&A and Investment Summary September 2014 Traditional Media Public Company Valuation (1/3)
($ in Millions, except stock price data)
Large Cap Diversified Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CBS Corporation United States $53.50 ‐21% $ 28,189.5 $ 34,448.5 $ 14,910.0 $ 3,706.0 24.9% 5.8% 2.3x 9.3x Discovery Communications, Inc. United States 37.80 ‐17% 21,142.4 28,302.4 5,933.0 2,432.0 41.0% 21.1% 4.8x 11.6x News Corporation United States 16.35 ‐12% 9,487.1 6,518.1 8,574.0 615.0 7.2% 2.4% 0.8x 10.6x Time Warner Inc. United States 75.21 ‐15% 64,292.2 82,375.2 30,571.0 8,264.0 27.0% 9.9% 2.7x 10.0x Twenty‐First Century Fox, Inc. * United States 34.29 ‐6% 74,060.3 91,727.3 31,867.0 6,630.0 20.8% 15.1% 2.9x 13.8x Viacom, Inc. United States 76.94 ‐14% 32,551.5 43,993.5 13,444.0 4,356.0 32.4% ‐0.5% 3.3x 10.1x The Walt Disney Company United States 89.03 ‐2% 152,824.0 167,962.0 47,992.0 13,660.0 28.5% 8.4% 3.5x 12.3x
Adjusted Weighted Average 3.1x 11.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (12.7x)
B‐to‐B Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Euromoney Institutional Investor PLC United Kingdom $16.47 ‐27% $ 2,108.7 $ 2,167.8 $ 670.3 $ 201.3 30.0% 5.4% 3.2x 10.8x Global Sources Ltd. Hong Kong 6.71 ‐27% 200.1 121.2 197.6 36.5 18.5% ‐9.6% 0.6x 3.3x Informa plc Switzerland 7.93 ‐15% 4,785.1 6,077.9 1,846.1 558.7 30.3% 2.3% 3.3x 10.9x TechTarget, Inc. * United States 8.59 ‐6% 283.9 246.2 95.0 8.7 9.2% 2.6% 2.6x 28.3x UBM plc United Kingdom 9.46 ‐22% 2,321.6 3,127.4 1,237.9 310.6 25.1% ‐0.1% 2.5x 10.1x
Adjusted Weighted Average 3.0x 10.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (22.0x)
Radio Broadcasting Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Beasley Broadcast Group Inc. United States $5.36 ‐44% $ 123.9 $ 214.0 $ 103.3 $ 27.1 26.2% ‐0.5% 2.1x 7.9x Cumulus Media Inc. United States 4.03 ‐51% 935.1 3,487.9 1,158.3 294.0 25.4% 19.0% 3.0x 11.9x Emmis Communications Corp. United States 2.11 ‐43% 91.0 266.4 214.3 28.7 13.4% 8.4% 1.2x 9.3x Entercom Communications Corp. United States 8.03 ‐30% 313.7 796.4 376.5 95.5 25.4% ‐2.0% 2.1x 8.3x Journal Communications Inc. United States 8.43 ‐26% 429.2 585.1 405.6 85.1 21.0% ‐0.7% 1.4x 6.9x Pandora Media, Inc. United States 24.16 ‐40% 4,988.8 4,664.5 799.8 (11.3) NM 0.0% 5.8x NM Radio One Inc. United States 3.18 ‐45% 151.0 1,128.4 449.5 128.4 28.6% 3.4% 2.5x 8.8x Salem Communications Corp. United States 7.61 ‐26% 192.2 481.2 252.1 47.3 18.7% 8.2% 1.9x 10.2x Sirius XM Holdings Inc. * United States 3.49 ‐17% 19,794.9 24,249.2 3,994.6 1,318.9 33.0% 11.0% 6.1x 18.4x Spanish Broadcasting System Inc. United States 4.30 ‐42% 31.2 417.2 152.3 39.7 26.1% 2.9% 2.7x 10.5x Townsquare Media, Inc. United States 12.02 ‐2% 207.6 814.1 328.1 77.5 23.6% 0.0% 2.5x 10.5x
Adjusted Weighted Average 5.7x 9.8x
*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 (13.5x)
23 | M&A and Investment Summary September 2014 Traditional Media Public Company Valuation (2/3)
($ in Millions, except stock price data)
Broadcast, Cable, and Satellite Television Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMC Networks Inc. United States $58.42 ‐25% $ 4,211.2 $ 6,759.9 $ 1,877.2 $ 620.4 33.0% 28.6% 3.6x 10.9x British Sky Broadcasting Group plc United Kingdom 14.31 ‐8% 24,347.6 26,443.5 12,380.6 2,563.1 20.7% 5.5% 2.1x 10.3x Cablevision Systems Corporation United States 17.51 ‐14% 4,747.5 13,726.4 6,355.0 1,768.3 27.8% 3.6% 2.2x 7.8x CBS Corporation United States 53.50 ‐21% 28,189.5 34,448.5 14,910.0 3,706.0 24.9% 5.8% 2.3x 9.3x Charter Communications, Inc. United States 151.37 ‐10% 16,445.6 30,475.6 8,727.0 3,009.0 34.5% 13.6% 3.5x 10.1x Comcast Corporation United States 53.78 ‐6% 139,068.0 183,179.0 67,329.0 22,317.0 33.1% 5.1% 2.7x 8.2x Crown Media Holdings Inc. United States 3.20 ‐20% 1,151.0 1,506.7 390.8 296.7 75.9% 10.3% 3.9x 5.1x DIRECTV United States 86.52 ‐3% 43,452.8 61,537.8 32,438.0 8,021.0 24.7% 5.5% 1.9x 7.7x Discovery Communications, Inc. United States 37.80 ‐17% 21,142.4 28,302.4 5,933.0 2,432.0 41.0% 21.1% 4.8x 11.6x Dish Network Corp. United States 64.58 ‐4% 29,759.1 34,326.2 14,325.9 2,839.7 19.8% 11.1% 2.4x 12.1x Entravision Communications Corporation United States 3.96 ‐46% 353.8 678.7 232.4 73.8 31.8% 1.8% 2.9x 9.2x General Communication Inc. United States 10.91 ‐7% 452.8 1,830.3 876.5 297.8 34.0% 18.8% 2.1x 6.1x Gray Television Inc. * United States 7.88 ‐48% 459.5 1,601.8 382.4 117.9 30.8% ‐2.4% 4.2x 13.6x Grupo Televisa, S.A.B. Mexico 33.88 ‐10% 19,596.9 23,690.6 5,696.6 2,168.3 38.1% 8.1% 4.2x 10.9x Journal Communications Inc. United States 8.43 ‐26% 429.2 585.1 405.6 85.1 21.0% ‐0.7% 1.4x 6.9x Liberty Global plc United Kingdom 42.54 ‐7% 32,312.9 76,047.7 17,880.4 8,026.4 44.9% 68.7% 4.3x 9.5x LIN Media LLC United States 22.20 ‐24% 1,234.2 2,156.5 702.0 174.9 24.9% 10.6% 3.1x 12.3x Media General, Inc. * United States 13.11 ‐45% 1,163.5 1,996.8 462.1 132.6 28.7% 96.4% 4.3x 15.1x Nexstar Broadcasting Group, Inc. United States 40.42 ‐28% 1,248.5 2,308.8 544.7 184.5 33.9% 22.5% 4.2x 12.5x Scripps Networks Interactive, Inc. United States 78.09 ‐10% 10,942.2 12,502.7 2,623.2 1,125.3 42.9% 7.9% 4.8x 11.1x Sinclair Broadcast Group, Inc. United States 26.09 ‐30% 2,542.4 5,269.2 1,634.1 546.3 33.4% 37.9% 3.2x 9.6x The E. W. Scripps Company * United States 16.31 ‐28% 919.6 1,028.9 826.1 62.7 7.6% ‐6.8% 1.2x 16.4x Time Warner Cable Inc. United States 143.49 ‐8% 40,103.8 64,299.8 22,403.0 7,805.0 34.8% 2.4% 2.9x 8.2x Time Warner Inc. United States 75.21 ‐15% 64,292.2 82,375.2 30,571.0 8,264.0 27.0% 9.9% 2.7x 10.0x Ziggo N.V. * Netherlands 46.81 ‐1% 9,361.9 13,294.1 1,999.7 1,075.6 53.8% 2.7% 6.6x 12.4x
Adjusted Weighted Average 2.9x 9.4x
*Calculation is market cap 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 (13.0x)
Entertainment Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA DreamWorks Animation SKG Inc. United States $27.27 ‐24% $ 2,309.0 $ 2,677.8 $ 628.4 $ (10.6) NM ‐21.4% 4.3x NM Eros International Plc United Kingdom 14.61 ‐14% 787.4 979.2 239.9 54.7 22.8% 19.4% 4.1x 17.9x Lions Gate Entertainment Corp. United States 32.97 ‐13% 4,496.7 5,701.4 2,509.9 281.9 11.2% ‐10.6% 2.3x 20.2x Live Nation Entertainment, Inc. United States 24.02 ‐5% 4,816.3 5,308.9 6,668.4 486.9 7.3% 11.1% 0.8x 10.9x SFX Entertainment Inc. United States 5.02 ‐63% 448.0 615.2 248.2 (83.3) NM 300.4% 2.5x NM Twenty‐First Century Fox, Inc. United States 34.29 ‐6% 74,060.3 91,727.3 31,867.0 6,630.0 20.8% 15.1% 2.9x 13.8x Liberty Media Corporation * United States 47.18 ‐11% 16,147.4 30,241.4 4,306.0 1,162.0 27.0% 108.5% 7.0x 26.0x Village Roadshow Limited Austral ia 6.19 ‐16% 987.9 1,308.8 837.0 142.4 17.0% 3.9% 1.6x 9.2x World Wrestling Entertainment Inc. United States 13.77 ‐57% 1,039.2 988.4 513.6 (10.0) NM 3.6% 1.9x NM
Adjusted Weighted Average 2.8x 14.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (22.6x) 24 | M&A and Investment Summary September 2014 Traditional Media Public Company Valuation (3/3)
($ in Millions, except stock price data)
Out‐of‐Home Media Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AirMedia Group Inc. China $1.74 ‐46% $ 103.7 $ 29.9 $ 269.8 $ 0.4 0.2% ‐4.0% 0.1x 69.1x APG|SGA SA Switzerland 300.64 ‐6% 886.3 795.7 316.4 73.7 23.3% ‐5.6% 2.5x 10.8x CBS Outdoor Americas Inc. United States 29.94 ‐16% 3,592.8 4,967.5 1,304.4 372.4 28.5% 2.0% 3.8x 13.3x Clear Channel Outdoor Holdings Inc. United States 6.74 ‐37% 2,423.9 7,331.1 2,945.6 706.0 24.0% ‐0.2% 2.5x 10.4x Clear Media Ltd. Hong Kong 1.04 ‐7% 559.2 446.4 217.5 88.1 40.5% 6.5% 2.1x 5.1x JCDecaux SA France 31.55 ‐23% 7,061.6 7,154.5 3,432.4 746.3 21.7% 9.2% 2.1x 9.6x Lamar Advertising Co. United States 49.25 ‐10% 4,692.5 6,586.0 1,256.9 541.0 43.0% 3.6% 5.2x 12.2x Mood Media Corporation United States 0.58 ‐42% 104.5 671.6 500.8 80.3 16.0% ‐1.3% 1.3x 8.4x National CineMedia, Inc. United States 14.51 ‐28% 883.4 1,941.2 427.9 201.7 47.1% ‐7.9% 4.5x 9.6x NTN Buzztime Inc. * United States 0.33 ‐67% 30.3 22.9 25.4 0.1 0.3% 7.5% 0.9x 286.2x Tom Group Ltd. Hong Kong 0.18 ‐50% 716.4 995.2 216.3 (1.3) NM ‐18.0% 4.6x NM
Adjusted Weighted Average 3.3x 11.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (130.8x)
Publishing Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A. H. Belo Corporation United States $10.67 ‐18% $ 234.3 $ 174.8 $ 364.7 $ 30.0 8.2% 11.5% 0.5x 5.8x Daily Mail and General Trust plc United Kingdom 12.43 ‐29% 4,335.2 5,803.0 2,948.8 522.2 17.7% 4.1% 2.0x 11.1x Emmis Communications Corp. United States 2.11 ‐43% 91.0 266.4 214.3 28.7 13.4% 8.4% 1.2x 9.3x Gannett Co., Inc. United States 29.67 ‐17% 6,694.9 9,961.3 5,485.0 1,139.9 20.8% 2.2% 1.8x 8.7x Glacier Media, Inc. Canada 1.35 0% 120.5 243.0 257.7 27.2 10.5% ‐3.9% 0.9x 8.9x John Wiley & Sons Inc. United States 56.11 ‐10% 3,339.6 3,872.3 1,802.1 329.0 18.3% 2.3% 2.1x 11.8x Journal Communications Inc. United States 8.43 ‐26% 429.2 585.1 405.6 85.1 21.0% ‐0.7% 1.4x 6.9x Martha Stewart Living Omnimedia Inc. * United States 3.60 ‐35% 205.5 143.8 152.1 10.1 6.7% ‐15.2% 0.9x 14.2x Meredith Corporation United States 42.80 ‐21% 1,912.7 2,591.1 1,468.7 258.1 17.6% ‐0.2% 1.8x 10.0x Reed Elsevier plc(1) * United Kingdom 16.03 ‐3% 18,108.1 49,631.3 9,944.2 3,154.3 31.7% 0.0% 5.0x 15.7x Scholastic Corporation United States 32.32 ‐12% 1,057.7 1,241.2 1,829.8 128.6 7.0% 3.1% 0.7x 9.7x The E. W. Scripps Company * United States 16.31 ‐28% 919.6 1,028.9 826.1 62.7 7.6% ‐6.8% 1.2x 16.4x The McClatchy Company United States 3.36 ‐55% 291.5 1,585.8 1,224.6 260.7 21.3% ‐3.8% 1.3x 6.1x The New York Times Company United States 11.22 ‐35% 1,686.4 1,618.6 1,584.7 233.1 14.7% ‐0.6% 1.0x 6.9x Time Inc. United States 23.43 ‐9% 2,553.2 3,726.2 3,349.0 527.0 15.7% 0.0% 1.1x 7.1x
Adjusted Weighted Average 1.6x 9.4x
(1) All financials are representative of the Reed Elsevier combined businesses, except per stock data, which represents Reed Elsevier (LSE:REL) *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.3x)
25 | M&A and Investment Summary September 2014 Technology & Communications
. Of the $746 million in reported transaction value in the Technology & Communications segment, $199 million of which were strategic acquisitions . Activity in the segment was led by the Financial Technology subsegment with eight deals announced, of which five were reported at $284 million . Select acquisitions: • BlackBaud’s $160 million acquisition of financial technology provider MicroEdge • Spirent Communications’ acquisition of Denmark‐based Mobilethink, which provides a device intelligence platform, for $20 million . Select Investments: • The $218 million investment in Pacific DataVision, a provider of mobile workforce management solutions
TECHNOLOGY & COMMUNICATIONS TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Financial Technology 8 18% $284.3 38% 2 $160.0 0 ‐ 6 $124.3 Cloud Computing Technology 5 11% 54.0 7% 3 12.0 0 ‐ 242.0 Communications Software 5 11% 42.8 6% 0 ‐ 0 ‐ 542.8 Data Center Technology 4 9% 17.0 2% 2 ‐ 0 ‐ 217.0 Enterprise Mobility 4 9% 227.2 30% 0 ‐ 0 ‐ 4 227.2 Cloud Storage 3 7% 16.7 2% 2 ‐ 0 ‐ 116.7 Networking Equipment 3 7% 32.0 4% 1 7.0 0 ‐ 225.0 Big Data Technology 2 5% 7.0 1% 1 ‐ 0 ‐ 17.0 Other* 10 23% 65.1 9% 4 20.0 0 ‐ 645.1 Total 44 100% 746.1 100% 15 199.0 0 0.0 29 547.1
*Other includes Internet Service Providers, Mobile Infrastructure, Software‐Defned Networking, Video Communications, Virtualization Technology, and Web Conferencing Software
26 | M&A and Investment Summary September 2014 Technology Public Company Valuation (1/2)
($ in Millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 3M Company United States $141.68 ‐4% $ 91,804.2 $ 96,262.2 $ 31,450.0 $ 8,298.0 26.4% 3.9% 3.1x 11.6x ACI Worldwide, Inc. United States 18.76 ‐15% 2,140.1 2,844.9 973.4 211.0 21.7% 30.3% 2.9x 13.5x ADATA Technology Co., Ltd. Taiwan 2.08 ‐32% 479.4 589.8 1,037.6 17.8 1.7% 1.5% 0.6x 33.2x Advanced Micro Devices, Inc. United States 3.41 ‐29% 2,618.6 3,880.6 5,888.0 476.0 8.1% 26.0% 0.7x 8.2x Akamai Technologies, Inc. United States 59.80 ‐8% 10,654.1 10,492.8 1,761.3 619.0 35.1% 19.9% 6.0x 17.0x Arista Networks, Inc. * United States 88.33 ‐7% 5,688.8 5,334.7 471.5 102.1 21.6% 0.0% 11.3x 52.3x AVG Technologies N.V. Netherlands 16.58 ‐35% 869.1 824.0 383.6 129.0 33.6% ‐3.0% 2.1x 6.4x Brightcove, Inc. United States 5.58 ‐66% 179.8 160.4 120.4 (1.1) NM 22.8% 1.3x NM CA Technologies, Inc. United States 27.94 ‐23% 12,435.0 11,084.0 4,489.0 1,425.0 31.7% ‐1.6% 2.5x 7.8x Carbonite, Inc. United States 10.24 ‐36% 275.3 202.9 115.9 8.3 7.2% 20.8% 1.8x 24.4x CDW Corporation United States 31.05 ‐8% 5,344.4 8,554.6 11,335.9 756.4 6.7% 8.8% 0.8x 11.3x Check Point Software Technologies Ltd. Israel 69.24 ‐5% 13,210.3 11,976.8 1,436.0 786.0 54.7% 5.3% 8.3x 15.2x ChinaCache International Holdings Ltd. China 13.78 ‐53% 349.5 259.4 209.3 6.6 3.2% 39.3% 1.2x 39.2x Citrix Systems, Inc. United States 71.34 ‐2% 11,733.3 12,190.2 3,047.5 724.9 23.8% 9.4% 4.0x 16.8x CommVault Systems, Inc. United States 50.40 ‐44% 2,283.9 1,885.4 604.6 103.6 17.1% 16.5% 3.1x 18.2x Cray Inc. United States 26.24 ‐38% 1,013.0 844.3 502.0 24.1 4.8% 29.2% 1.7x 35.1x Crossroads Systems, Inc. United States 2.85 ‐23% 44.0 42.9 12.1 (5.3) NM ‐10.9% 3.6x NM Datalink Corporation United States 10.63 ‐33% 239.1 180.1 611.8 24.6 4.0% 14.7% 0.3x 7.3x Dot Hill Systems Corp. United States 3.78 ‐38% 228.2 186.0 207.8 6.7 3.2% 10.9% 0.9x 27.6x Elecom Co., Ltd. Japan 22.53 ‐10% 498.2 373.4 655.5 78.9 12.0% 15.4% 0.6x 4.7x EMC Corporation United States 29.26 ‐3% 59,358.5 58,738.5 23,580.0 5,453.0 23.1% 5.7% 2.5x 10.8x ePlus inc. United States 56.05 ‐9% 420.5 516.3 1,070.5 77.4 7.2% 7.3% 0.5x 6.7x Euronet Worldwide Inc. United States 47.79 ‐13% 2,507.5 2,512.6 1,484.8 190.5 12.8% 10.4% 1.7x 13.2x F‐Secure Oyj Finland 3.14 ‐14% 489.5 429.7 197.0 39.2 19.9% 0.0% 2.2x 11.0x Gemalto NV Netherlands 91.73 ‐20% 7,933.2 7,481.4 3,013.4 450.3 14.9% 1.2% 2.5x 16.6x Google Inc. United States 588.41 ‐4% 394,258.6 344,270.6 65,142.0 19,424.0 29.8% 21.1% 5.3x 17.7x Green Dot Corporation United States 21.14 ‐21% 848.1 77.0 594.7 73.8 12.4% 4.2% 0.1x 1.0x Imperva Inc. United States 28.73 ‐57% 761.2 661.7 147.8 (42.3) NM 25.2% 4.5x NM Integrated Electrical Services, Inc. United States 8.25 ‐2% 179.6 168.4 500.3 9.0 1.8% 1.2% 0.3x 18.8x Intel Corporation United States 34.82 ‐2% 172,393.8 168,375.8 53,912.0 22,019.0 40.8% 3.0% 3.1x 7.6x IBM Corporation United States 189.83 ‐5% 189,372.9 226,253.9 98,267.0 25,160.0 25.6% ‐4.0% 2.3x 9.0x Interxion Holding NV Netherlands 27.69 ‐7% 1,911.4 2,430.1 404.4 166.3 41.1% 8.9% 6.0x 14.6x J‐Stream Inc. Japan 3.61 ‐46% 42.0 25.0 42.2 4.8 11.3% ‐5.3% 0.6x 5.3x Limelight Networks, Inc. United States 2.34 ‐28% 229.8 122.8 167.4 (9.4) NM ‐7.0% 0.7x NM LogMeIn, Inc. United States 46.07 ‐8% 1,134.2 913.2 192.1 18.0 9.4% 27.7% 4.8x 50.7x Melbourne IT Ltd. Australia 1.21 ‐31% 112.6 104.5 97.7 8.3 8.5% 8.2% 1.1x 12.6x Micron Technology, Inc. United States 34.26 ‐2% 36,686.4 39,547.4 16,358.0 5,426.7 33.2% 80.3% 2.4x 7.3x Microsoft Corporation United States 46.36 ‐3% 381,999.4 320,273.4 86,833.0 32,131.0 37.0% 11.5% 3.7x 10.0x MobileIron, Inc. United States 11.14 ‐14% 845.2 689.9 114.3 (46.5) NM 0.0% 6.0x NM Montage Technology Group Limited * China 20.89 ‐22% 589.1 465.8 141.5 ‐ 0.0% 57.8% 3.3x NA NEC Corporation Japan 3.45 ‐6% 8,976.5 12,526.7 27,362.5 1,714.3 6.3% ‐2.6% 0.5x 7.3x
27 | M&A and Investment Summary September 2014 Technology Public Company Valuation (2/2)
($ in Millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA NetApp, Inc. United States $42.96 ‐7% $ 13,715.2 $ 9,645.1 $ 6,298.1 $ 1,031.4 16.4% ‐1.7% 1.5x 9.4x Oracle Corporation United States 38.28 ‐11% 169,630.3 151,161.3 38,499.0 16,826.0 43.7% 3.0% 3.9x 9.0x ProAct IT Group AB Sweden 10.53 ‐23% 98.1 111.3 325.2 21.6 6.7% 1.1% 0.3x 5.1x Qualys, Inc. United States 26.60 ‐11% 877.5 768.4 119.4 14.1 11.8% 20.4% 6.4x 54.3x Quantum Corporation United States 1.16 ‐27% 294.5 393.7 533.4 7.2 1.4% ‐10.3% 0.7x 54.5x Rackspace Hosting, Inc. United States 32.55 ‐40% 4,655.2 4,392.8 1,658.9 424.1 25.6% 16.3% 2.6x 10.4x Red Hat, Inc. United States 56.15 ‐10% 10,546.2 9,743.2 1,666.6 314.7 18.9% 16.6% 5.8x 31.0x SanDisk Corp. United States 97.95 ‐10% 21,963.2 21,309.7 6,499.0 2,345.7 36.1% 15.4% 3.3x 9.1x SAP SE Germany 72.06 ‐9% 86,080.9 87,471.7 21,456.4 7,404.6 34.5% 2.2% 4.1x 11.8x Seagate Technology Public Limited Company Ireland 57.27 ‐9% 18,672.0 19,938.0 13,724.0 2,689.0 19.6% ‐4.4% 1.5x 7.4x Silicon Graphics International Corp. United States 9.23 ‐44% 319.4 210.1 529.9 (35.2) NM ‐30.9% 0.4x NM Sony Corporation Japan 18.15 ‐8% 19,012.5 19,485.4 71,598.0 4,723.0 6.6% 12.8% 0.3x 4.1x Splunk, Inc. * United States 55.36 ‐48% 6,638.6 5,801.0 366.0 (149.3) NM 51.6% 15.8x NM Symantec Corporation United States 23.51 ‐8% 16,229.2 14,275.2 6,702.0 1,941.0 29.0% ‐3.5% 2.1x 7.4x Synchronoss Technologies, Inc. United States 45.78 ‐2% 1,913.5 1,842.3 388.9 100.1 25.7% 27.8% 4.7x 18.4x Tableau Software, Inc. * United States 72.65 ‐29% 4,991.1 4,363.8 307.8 15.4 5.0% 87.8% 14.2x 284.0x Teradata Corporation United States 41.92 ‐24% 6,497.6 5,788.6 2,739.0 635.0 23.2% 3.6% 2.1x 9.1x Trend Micro Inc. Japan 33.82 ‐11% 4,533.9 3,487.5 1,010.2 354.4 35.1% 9.8% 3.5x 9.8x The KEYW Holding Corporation United States 11.07 ‐52% 408.1 493.5 280.6 15.2 5.4% ‐2.5% 1.8x 32.5x VeriSign, Inc. United States 55.12 ‐12% 6,891.2 6,713.8 988.5 607.8 61.5% 6.3% 6.8x 11.0x Violin Memory, Inc. United States 4.87 ‐38% 448.3 380.2 93.1 (120.8) NM ‐1.8% 4.1x NM VMware, Inc. United States 93.84 ‐17% 40,361.7 35,224.7 5,589.0 1,454.0 26.0% 15.0% 6.3x 24.2x Western Digital Corporation United States 97.32 ‐6% 22,734.8 20,084.8 15,130.0 3,117.0 20.6% ‐1.4% 1.3x 6.4x Xoom Corporation * United States 21.95 ‐39% 838.2 632.2 140.2 9.2 6.5% 40.4% 4.5x 68.9x
Adjusted Weighted Average 3.7x 12.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (9.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (60.9x)
28 | M&A and Investment Summary September 2014 Communications Public Company Valuation (1/2)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A10 Networks, Inc. United States $9.11 ‐45% $ 544.9 $ 432.8 $ 172.9 $ (2.9) NM 0.0% 2.5x NM Aerohive Networks, Inc. United States $8.02 ‐34% 366.6 282.4 125.1 (26.2) NM 38.4% 2.3x NM ADTRAN Inc. United States 20.53 ‐27% 1,123.1 1,048.3 659.6 73.2 11.1% 8.6% 1.6x 14.3x Alcatel‐Lucent France 3.10 ‐29% 8,741.7 9,853.6 17,889.8 1,036.2 5.8% ‐0.2% 0.6x 9.5x Allot Communications Ltd. Israel 11.42 ‐37% 379.7 256.1 107.7 3.7 3.4% 8.3% 2.4x 69.4x Aruba Networks, Inc. United States 21.58 ‐10% 2,354.2 2,069.3 728.9 31.8 4.4% 21.5% 2.8x 65.1x AudioCodes Ltd. Israel 4.80 ‐47% 207.8 199.2 144.8 5.9 4.1% 11.3% 1.4x 33.6x Aviat Networks, Inc. United States 1.80 ‐36% 111.9 69.1 346.5 (31.6) NM ‐26.5% 0.2x NM Axesstel Inc. United States 0.08 ‐79% 2.0 10.7 27.4 (6.1) NM ‐54.9% 0.4x NM BlackBerry Limited Canada 9.98 ‐11% 5,191.1 4,031.5 4,051.0 (1,175.0) NM ‐59.7% 1.0x NM Barracuda Networks, Inc. * United States 25.65 ‐42% 1,320.5 1,183.8 243.7 4.0 1.6% 16.5% 4.9x 299.5x Blonder Tongue Laboratories Inc. United States 1.32 ‐30% 8.2 14.0 28.4 (1.0) NM ‐5.9% 0.5x NM BroadSoft, Inc. * United States 21.04 ‐44% 603.4 540.9 191.3 1.0 0.5% 12.8% 2.8x 545.8x Brocade Communications Systems, Inc. United States 10.87 ‐1% 4,695.9 4,143.7 2,205.7 578.3 26.2% ‐1.6% 1.9x 7.2x CalAmp Corp. United States 17.62 ‐49% 633.4 600.9 241.1 28.3 11.7% 26.6% 2.5x 21.2x Calix Inc. United States 9.57 ‐28% 487.2 408.3 381.5 6.0 1.6% 6.6% 1.1x 67.5x Ciena Corporation United States 16.72 ‐40% 1,781.8 2,592.9 2,280.7 164.0 7.2% 16.1% 1.1x 15.8x Cisco Systems, Inc. United States 25.17 ‐3% 128,346.9 97,191.9 47,142.0 12,642.0 26.8% ‐3.0% 2.1x 7.7x Clearfield, Inc. United States 12.73 ‐52% 171.1 145.9 62.8 11.3 18.0% 40.4% 2.3x 12.9x ClearOne, Inc. United States 8.44 ‐41% 77.7 66.0 53.4 8.3 15.6% 12.2% 1.2x 7.9x COM DEV International Ltd. Canada 3.18 ‐19% 243.5 233.5 188.5 32.8 17.4% ‐3.5% 1.2x 7.1x CommScope Holding Company, Inc. United States 23.91 ‐14% 4,476.3 6,706.3 3,735.9 849.4 22.7% 7.1% 1.8x 7.9x Communications Systems Inc. United States 11.16 ‐20% 96.5 76.5 130.3 9.9 7.6% 14.5% 0.6x 7.7x Corning Inc. United States 19.34 ‐14% 24,968.5 25,154.5 8,794.0 2,716.0 30.9% 10.2% 2.9x 9.3x CTX Virtual Technologies, Inc. United States 1.87 ‐13% 14.9 15.1 119.2 16.9 14.2% 198.1% 0.1x 0.9x Cyan, Inc. United States 3.12 ‐69% 146.7 112.1 102.0 (51.0) NM ‐12.5% 1.1x NM Digi International Inc. United States 7.50 ‐41% 186.4 98.1 192.5 11.6 6.0% 0.6% 0.5x 8.5x DragonWave Inc. Canada 1.22 ‐51% 71.3 74.8 94.3 (32.6) NM ‐30.4% 0.8x NM EchoStar Corp. United States 48.76 ‐9% 4,451.2 5,248.2 3,362.8 754.0 22.4% 5.9% 1.6x 7.0x Emulex Corporation United States 4.94 ‐40% 350.6 338.6 447.3 26.8 6.0% ‐6.5% 0.8x 12.6x Ericsson Sweden 12.69 ‐3% 41,802.0 35,654.8 30,815.1 4,414.9 14.3% ‐2.8% 1.2x 8.1x Extreme Networks Inc. United States 4.79 ‐41% 467.1 482.8 519.6 15.4 3.0% 73.6% 0.9x 31.4x F5 Networks, Inc. United States 118.74 ‐7% 8,796.7 8,185.4 1,662.1 512.5 30.8% 14.7% 4.9x 16.0x Finisar Corp. United States 16.63 ‐42% 1,655.6 1,412.8 1,218.4 168.3 13.8% 24.3% 1.2x 8.4x Fleetmatics Group PLC Ireland 30.50 ‐31% 1,145.2 1,014.4 203.6 44.5 21.9% 35.7% 5.0x 22.8x Franklin Wireless Corp. United States 1.59 ‐24% 16.7 8.9 31.0 (1.4) NM ‐5.5% 0.3x NM Gigamon Inc. United States 10.47 ‐74% 335.2 200.3 148.7 (32.9) NM 28.4% 1.3x NM Gogo Inc. * United States 16.86 ‐53% 1,436.5 1,485.0 373.2 13.0 3.5% 37.4% 4.0x 114.0x Harmonic Inc. United States 6.34 ‐23% 581.2 446.8 460.8 25.8 5.6% 0.8% 1.0x 17.3x Harris Corporation United States 66.40 ‐16% 6,937.9 8,011.8 5,012.0 1,083.3 21.6% ‐2.0% 1.6x 7.4x Infoblox Inc. United States 14.75 ‐70% 812.9 543.1 250.3 (14.2) NM 11.2% 2.2x NM Interactive Intelligence Group Inc. United States 41.80 ‐49% 876.7 803.5 328.0 10.7 3.3% 17.4% 2.4x 75.1x JDS Uniphase Corporation United States $12.80 ‐23% 2,944.37 2,662.67 1,743.20 154.3 8.9% 4.0% 1.5x 17.3x Juniper Networks, Inc. United States 22.15 ‐23% 9,993.81 8,722.41 4,858.80 857.5 17.6% 8.7% 1.8x 10.2x KVH Industries Inc. United States 11.32 ‐21% 180.02 163.76 157.07 7.0 4.4% ‐2.7% 1.0x 23.5x 29 | M&A and Investment Summary September 2014 Communications Public Company Valuation (2/2)
($ in Millions, except stock price data) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Mavenir Systems, Inc. United States 12.56 ‐33% $ 361.1 $ 361.2 $ 115.1 $ (4.8) NM 40.3% 3.1x NM Meru Networks, Inc. United States 3.81 ‐23% 89.9 75.2 98.7 (13.8) NM ‐5.8% 0.8x NM Mitel Networks Corporation Canada 9.15 ‐23% 910.2 1,118.0 776.5 87.5 11.3% 0.0% 1.4x 12.8x Motorola Solutions, Inc. United States 63.28 ‐7% 15,875.6 15,479.6 8,425.0 1,455.0 17.3% 12.5% 1.8x 10.6x Netgear Inc. United States 31.25 ‐14% 1,122.2 879.5 1,405.5 139.4 9.9% 10.1% 0.6x 6.3x Nokia Corporation Finland 8.53 ‐2% 31,358.4 23,226.9 15,170.1 2,434.5 16.0% 76.8% 1.5x 9.5x Nuance Communications, Inc. United States 15.42 ‐21% 4,924.3 6,411.8 1,893.4 172.1 9.1% 2.2% 3.4x 37.3x Numerex Corp. United States 10.48 ‐34% 198.6 207.7 87.5 6.1 7.0% 27.4% 2.4x 33.9x Optical Cable Corp. United States 4.53 ‐9% 31.1 40.5 77.0 2.0 2.5% ‐1.5% 0.5x 20.7x Palo Alto Networks, Inc. * United States 98.10 ‐4% 7,811.5 7,505.9 598.2 (44.7) NM 51.0% 12.5x NM PCTEL, Inc. United States 7.59 ‐25% 140.0 86.3 102.3 6.1 6.0% ‐1.2% 0.8x 14.1x Plantronics, Inc. United States 47.78 ‐7% 2,286.1 1,957.7 832.5 153.5 18.4% 6.2% 2.4x 12.8x Polycom, Inc. United States 12.29 ‐13% 1,680.5 1,376.3 1,344.9 140.2 10.4% ‐2.0% 1.0x 9.8x Procera Networks, Inc. United States 9.58 ‐38% 193.6 86.4 77.8 (11.5) NM 20.4% 1.1x NM RadiSys Corporation United States 2.67 ‐42% 96.8 90.2 198.0 (23.0) NM ‐25.7% 0.5x NM Radware Ltd. Israel 17.66 ‐9% 795.2 630.4 205.1 27.7 13.5% 8.4% 3.1x 22.8x RELM Wireless Corp. United States 5.16 ‐12% 70.4 61.3 30.6 2.8 9.3% 12.9% 2.0x 21.6x RingCentral, Inc. United States 12.71 ‐46% 859.8 739.6 188.3 (38.6) NM 38.5% 3.9x NM Riverbed Technology, Inc. United States 18.55 ‐19% 2,961.9 3,054.7 1,074.4 173.6 16.2% 12.9% 2.8x 17.6x Sandvine Corporation Canada 2.48 ‐32% 372.6 232.1 119.2 32.1 26.9% 21.9% 1.9x 7.2x ShoreTel, Inc. United States 6.65 ‐32% 419.4 363.8 339.8 19.1 5.6% 8.4% 1.1x 19.0x Sierra Wireless Inc. Canada 26.84 ‐10% 845.7 685.0 487.0 13.0 2.7% 15.8% 1.4x 52.8x SolarWinds, Inc. * United States 42.05 ‐10% 3,170.3 3,008.1 382.4 134.4 35.2% 29.3% 7.9x 22.4x Solera Holdings Inc. United States 56.36 ‐21% 3,866.8 5,288.7 987.3 377.0 38.2% 17.8% 5.4x 14.0x Sonus Networks, Inc. * United States 3.42 ‐20% 844.6 729.6 290.6 4.6 1.6% 9.8% 2.5x 158.6x Telcoware Co., Ltd. South Korea 13.14 ‐20% 70.8 21.5 51.6 6.9 13.4% 0.0% 0.4x 3.1x TeleCommunication Systems Inc. United States 2.79 ‐22% 166.1 238.8 346.0 25.7 7.4% ‐24.8% 0.7x 9.3x TESSCO Technologies Inc. United States 28.99 ‐31% 241.5 237.6 568.9 29.4 5.2% ‐19.2% 0.4x 8.1x Transmode AB (publ) Sweden 8.04 ‐52% 222.7 183.4 135.3 16.8 12.4% ‐6.0% 1.4x 10.9x Ubiquitous Corporation * Japan 13.05 ‐46% 114.2 105.8 7.2 (2.3) NM ‐8.2% 14.8x NM Vecima Networks Inc. Canada 7.51 ‐7% 167.8 127.6 81.1 16.6 20.5% ‐0.6% 1.6x 7.7x Verint Systems Inc. United States 55.61 ‐3% 3,368.3 3,883.2 1,014.3 146.8 14.5% 18.3% 3.8x 26.4x ViaSat Inc. United States 55.12 ‐26% 2,574.8 3,313.1 1,349.8 180.6 13.4% 12.6% 2.5x 18.3x Vonage Holdings Corporation United States 3.28 ‐34% 685.7 731.8 854.8 70.6 8.3% 2.4% 0.9x 10.4x Westell Technologies, Inc. United States 1.84 ‐62% 110.7 63.9 107.4 3.9 3.6% 107.2% 0.6x 16.5x ZTE Corp. China 2.47 ‐17% 8,324.6 10,516.4 12,287.4 540.6 4.4% ‐4.5% 0.9x 19.5x
Adjusted Weighted Average 2.0x 11.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (114.0x)
30 | M&A and Investment Summary September 2014 Software
. Within the Software segment, a total of $9.7 billion in reported value was in transactions involving strategic buyers, while another $1 billion in investments were announced . Security was the most active subsegment with 16 transactions announced worth $377 million, followed by Healthcare with 12 transactions worth a total of $480 million . Select acquisitions: • SAP’s $8.3 billion purchase of expense management solutions provider Concur Technologies, at a valuation of 12.0x revenue • Thoma Bravo’s $2.5 billion acquisition of Compuware, which provides application management tools • Micro Focus’ $1.2 billion purchase of The Attachmate Group, which offers management system applications, at a valuation of 1.3x revenue • Veritas Capital’s $310 million acquisition of security software solutions provider BeyondTrust
SOFTWARE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM Security 16 17% $377.4 3% 4 ‐ 1 $310.0 11 $67.4 Healthcare 12 13% 480.0 4% 4 ‐ 1 ‐ 7 480.0 ERP 9 10% 40.1 0% 5 1.1 1 ‐ 3 39.0 Software Development Tools 9 10% 64.3 0% 3 ‐ 0 ‐ 6 64.3 Application Management 8 9% 3,898.2 29% 3 1,297.0 2 2,500.0 3 101.2 Financial 8 9% 8,257.6 61% 5 8,242.1 0 ‐ 3 15.5 Other* 30 33% 393.7 3% 18 157.8 1 ‐ 11 235.9 Total 92 100% 13,511.3 100% 42 9,698.0 6 2,810.0 44 1,003.3 *Other includes Collaboration, Credit/Risk, Data Management, Engineering, Geo‐Demo, Infrastructure, and Legal
31 | M&A and Investment Summary September 2014 Software Public Company Valuation (1/3)
($ in Millions, except stock price data) Financial & Credit/Risk Management Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Advent Software, Inc. United States $31.56 ‐13% $ 1,627.2 $ 1,865.8 $ 391.5 $ 94.3 24.1% 5.6% 4.8x 19.8x Ebix Inc. United States 14.18 ‐21% 543.6 545.9 204.0 78.5 38.5% ‐3.5% 2.7x 7.0x Epiq Systems, Inc. United States 17.56 ‐10% 632.2 915.6 462.5 61.0 13.2% 21.7% 2.0x 15.0x Fidessa group plc United Kingdom 36.60 ‐16% 1,385.2 1,292.9 442.3 82.9 18.8% 0.1% 2.9x 15.6x Guidewire Software, Inc. * United States 44.34 ‐24% 3,064.7 2,620.4 350.2 23.8 6.8% 16.5% 7.5x 110.2x Innovation Group plc United Kingdom 0.46 ‐22% 549.5 457.8 329.6 34.3 10.4% 3.8% 1.4x 13.3x Management Consulting Group PLC United Kingdom 0.40 ‐16% 194.3 270.9 413.6 33.2 8.0% ‐1.3% 0.7x 8.2x Model N, Inc. United States 9.86 ‐24% 245.1 141.9 89.2 (10.3) NM ‐8.3% 1.6x NM NetSuite Inc. * United States 89.54 ‐26% 6,842.6 6,633.2 476.6 (38.6) NM 33.4% 13.9x NM Performant Financial Corporation United States 8.08 ‐30% 393.7 429.0 252.8 79.2 31.3% 10.9% 1.7x 5.4x Q2 Holdings, Inc. United States 14.00 ‐19% 478.7 386.7 66.0 (16.4) NM 0.0% 5.9x NM RealPage, Inc. United States 15.50 ‐41% 1,227.8 1,213.5 389.1 42.0 10.8% 10.4% 3.1x 28.9x Solera Holdings Inc. United States 56.36 ‐21% 3,866.8 5,288.7 987.3 377.0 38.2% 17.8% 5.4x 14.0x SS&C Technologies Holdings, Inc. United States 43.89 ‐6% 3,665.0 4,259.7 736.6 287.0 39.0% 7.1% 5.8x 14.8x Tyler Technologies, Inc. United States 88.40 ‐18% 2,903.9 2,815.0 454.8 93.2 20.5% 17.2% 6.2x 30.2x
Adjusted Weighted Average 5.1x 18.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (11.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (51.9x)
Healthcare Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Allscripts Healthcare Solutions, Inc. * United States 13.42 ‐32% 2,416.9 2,936.6 1,372.7 29.4 2.1% ‐2.2% 2.1x 99.8x athenahealth, Inc. * United States 131.69 ‐36% 4,999.5 5,106.8 672.1 61.3 9.1% 36.0% 7.6x 83.3x Cegedim SA France 31.23 ‐14% 435.4 1,023.0 1,121.1 147.8 13.2% ‐0.9% 0.9x 6.9x Cerner Corporation United States 59.57 ‐6% 20,316.6 19,483.2 3,074.9 806.3 26.2% 13.4% 6.3x 24.2x Civitas Solutions, Inc. United States 15.62 ‐9% 577.2 1,341.3 1,244.0 131.1 10.5% 0.0% 1.1x 10.2x Computer Programs & Systems Inc. United States 57.49 ‐20% 644.4 620.4 203.2 56.6 27.9% 3.7% 3.1x 11.0x Craneware plc United Kingdom 8.23 ‐19% 220.7 190.3 42.6 12.2 28.6% 2.7% 4.5x 15.6x HealthEquity, Inc. * United States 18.31 ‐20% 1,002.1 1,032.0 73.5 20.5 27.8% 0.0% 14.0x 50.4x McKesson Corporation United States 194.67 ‐3% 45,085.4 53,439.4 149,428.0 3,352.0 2.2% 20.9% 0.4x 15.9x MedAssets, Inc. United States 20.72 ‐22% 1,245.3 2,034.9 683.1 202.5 29.6% 1.8% 3.0x 10.0x Medidata Solutions, Inc. * United States 44.29 ‐35% 2,393.1 2,410.2 305.4 25.2 8.2% 24.2% 7.9x 95.8x Merge Healthcare Incorporated United States 2.20 ‐23% 210.5 418.3 215.6 28.9 13.4% ‐12.3% 1.9x 14.5x Quality Systems Inc. United States 13.77 ‐43% 829.3 712.8 453.0 51.2 11.3% 0.3% 1.6x 13.9x Streamline Health Solutions, Inc. United States 4.63 ‐46% 84.7 95.5 27.4 (9.4) NM ‐3.8% 3.5x NM USMD Holdings, Inc. United States 8.75 ‐70% 88.8 114.9 259.7 2.9 1.1% 31.1% 0.4x 40.2x Veeva Systems Inc. United States 28.17 ‐43% 3,600.1 3,249.9 260.2 53.0 20.4% 54.9% 12.5x 61.4x
Adjusted Weighted Average 3.1x 20.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (12.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (70.1x)
32 | M&A and Investment Summary September 2014 Software Public Company Valuation (2/3)
($ in Millions, except stock price data) HR Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 51job Inc. China $29.93 ‐30% $ 1,780.7 $ 1,279.4 $ 279.6 $ 85.7 30.6% 15.1% 4.6x 14.9x Allocate Software plc. United Kingdom 1.85 ‐4% 126.6 104.7 63.8 10.1 15.9% 8.1% 1.6x 10.3x Benefitfocus, Inc. United States 26.94 ‐65% 686.4 653.1 119.6 (36.8) NM 31.1% 5.5x NM Castlight Health, Inc. * United States 12.94 ‐69% 1,160.4 1,000.6 27.7 (81.7) NM 0.0% 36.2x NM Concur Technologies, Inc. United States 126.82 ‐3% 7,237.9 7,096.0 667.9 22.2 3.3% 31.8% 10.6x NM Cornerstone OnDemand, Inc. United States 34.41 ‐44% 1,837.1 1,818.0 222.0 (36.8) NM 48.8% 8.2x NM Dice Holdings, Inc. United States 8.38 ‐10% 454.7 551.4 238.3 67.1 28.2% 17.2% 2.3x 8.2x LinkedIn Corporation * United States 207.79 ‐18% 25,539.4 23,177.7 1,847.2 196.4 10.6% 48.5% 12.5x 118.0x Monster Worldwide, Inc. United States 5.50 ‐35% 488.5 661.9 788.1 86.2 10.9% ‐6.6% 0.8x 7.7x Paycom Software, Inc. United States 16.56 ‐14% 845.2 858.7 126.4 14.9 11.8% 0.0% 6.8x 57.6x Paylocity Holding Corporation United States 19.65 ‐37% 973.9 895.1 108.7 (2.6) NM 40.6% 8.2x NM Saba Software, Inc. United States 13.50 ‐7% 402.1 387.9 121.3 (10.5) NM 7.7% 3.2x NM The Ultimate Software Group, Inc. UnitedStates 141.51 ‐18% 3,999.3 3,918.3 458.1 66.4 14.5% 23.7% 8.6x 59.0x Workday, Inc. United States 82.50 ‐29% 15,345.0 14,007.7 616.3 (155.2) NM 74.4% 22.7x NM
Adjusted Weighted Average 13.8x 41.6x *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (28.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (80.9x)
Security Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Absolute Software Corporation Canada $6.00 ‐17% $ 264.1 $ 208.7 $ 91.0 $ 16.1 17.7% 9.4% 2.3x 13.0x 383.6 129.0 33.6% ‐3.0% 2.1x 6.4x AVG Technologies N.V. Netherlands 16.58 ‐35% 869.1 824.0 Check Point Software Technologies Ltd. Israel 69.24 ‐5% 13,210.3 11,976.8 1,436.0 786.0 54.7% 5.3% 8.3x 15.2x Cisco Systems, Inc. United States 25.17 ‐3% 128,346.9 97,191.9 47,142.0 12,642.0 26.8% ‐3.0% 2.1x 7.7x Cheetah Mobile Inc. * China 18.25 ‐41% 2,338.1 2,028.2 187.4 20.3 10.8% 0.0% 10.8x 99.8x Cyber‐Ark Software Ltd. Israel 32.01 ‐11% 946.9 871.3 75.7 9.6 12.6% 0.0% 11.5x 91.1x FireEye, Inc. United States 30.56 ‐69% 4,551.5 4,087.0 268.4 (277.9) NM 132.9% 15.2x NM Fortinet Inc. United States 25.27 ‐6% 4,137.7 3,579.6 685.1 85.5 12.5% 20.0% 5.2x 41.9x Gemalto NV Netherlands 91.00 ‐20% 7,870.6 7,422.4 2,989.6 446.8 14.9% 1.2% 2.5x 16.6x Imperva Inc. United States 28.73 ‐57% 761.2 661.7 147.8 (42.3) NM 25.2% 4.5x NM Imprivata, Inc. United States 15.52 ‐9% 368.7 284.4 82.2 (12.9) NM 0.0% 3.5x NM Infoblox Inc. United States 14.75 ‐70% 812.9 543.1 250.3 (14.2) NM 11.2% 2.2x NM Juniper Networks, Inc. United States 22.15 ‐23% 9,993.8 8,722.4 4,858.8 857.5 17.6% 8.7% 1.8x 10.2x Mobileye N.V. * Israel 53.59 ‐11% 11,377.2 11,228.3 121.2 5.0 4.1% 0.0% 92.7x NM NQ Mobile Inc. * China 6.97 ‐73% 371.9 270.7 196.7 1.5 0.7% 114.3% 1.4x 185.5x Palo Alto Networks, Inc. United States 98.10 ‐8% 7,811.5 7,505.9 598.2 (44.7) NM 51.0% 12.5x NM Proofpoint, Inc. United States 37.14 ‐19% 1,389.4 1,321.3 164.4 (24.3) NM 39.0% 8.0x NM Qihoo 360 Technology Co. Ltd. China 67.47 ‐46% 8,496.3 8,377.6 992.6 263.9 26.6% 121.3% 8.4x 31.7x Symantec Corporation United States 23.51 ‐8% 16,229.2 14,275.2 6,702.0 1,941.0 29.0% ‐3.5% 2.1x 7.4x Trend Micro Inc. Japan 33.82 ‐11% 4,534.6 3,488.0 1,010.4 354.5 35.1% 9.8% 3.5x 9.8x VeriSign, Inc. United States 55.12 ‐12% 6,891.2 6,713.8 988.5 607.8 61.5% 6.3% 6.8x 11.0x
Adjusted Weighted Average 3.8x 10.9x
mean (91.1x)
33*Calculation | M&A and is market Investment cap weighted Summary and excludes September revenue multiples 2014 that are 2.0 standard deviations above the mean (48.7x)and EBITDA multiples that are 1.0 standard deviations above the Software Public Company Valuation (3/3)
($ in Millions, except stock price data) Engineering Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Ansys, Inc. United States $75.67 ‐15% $ 6,962.8 $ 6,179.3 $ 896.3 $ 416.7 46.5% 8.0% 6.9x 14.8x Autodesk, Inc. * United States 55.10 ‐6% 12,520.7 11,361.1 2,371.4 362.8 15.3% 3.7% 4.8x 31.3x Aveva Group plc United Kingdom 24.59 ‐41% 1,570.0 1,382.2 379.2 114.5 30.2% 7.8% 3.6x 12.1x Dassault Systemes SA France 63.68 ‐4% 16,047.3 14,862.1 2,651.8 757.8 28.6% 2.3% 5.6x 19.6x
Adjusted Weighted Average 5.5x 17.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (28.0x)
Infrastructure Software Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adobe Systems Inc. * United States $69.19 ‐7% $ 34,507.8 $ 32,495.8 $ 4,115.4 $ 710.6 17.3% ‐1.2% 7.9x 45.7x CA Technologies, Inc. United States 27.94 ‐23% 12,435.0 11,084.0 4,489.0 1,425.0 31.7% ‐1.6% 2.5x 7.8x CommVault Systems, Inc. United States 50.40 ‐44% 2,283.9 1,885.4 604.6 103.6 17.1% 16.5% 3.1x 18.2x Covisint Corporation United States 4.15 ‐72% 157.3 114.1 94.6 (40.8) NM 0.4% 1.2x NM Daegis Inc. United States 0.81 ‐43% 13.3 20.9 29.7 3.9 13.0% ‐23.0% 0.7x 5.4x Endurance International Group Holdings, Inc. United States 16.27 ‐4% 2,102.1 3,185.1 567.1 82.8 14.6% 25.6% 5.6x 38.5x Guidance Software, Inc. United States 6.73 ‐42% 196.9 178.2 108.8 (10.0) NM ‐14.1% 1.6x NM IBM Corporation United States 189.83 ‐5% 189,372.9 226,253.9 98,267.0 25,160.0 25.6% ‐4.0% 2.3x 9.0x Informatica Corporation United States 34.24 ‐22% 3,766.5 3,080.3 1,005.2 184.5 18.4% 16.6% 3.1x 16.7x IntraLinks Holdings, Inc. * United States 8.10 ‐35% 456.1 479.6 244.5 8.7 3.6% 8.7% 2.0x 55.0x NetSuite Inc. * United States 89.54 ‐26% 6,842.6 6,633.2 476.6 (38.6) NM 33.4% 13.9x NM Opera Software ASA Norway 13.80 ‐5% 1,949.4 1,895.9 352.6 86.3 24.5% 39.9% 5.4x 22.0x Oracle Corporation United States 38.28 ‐11% 169,630.3 151,161.3 38,499.0 16,826.0 43.7% 3.0% 3.9x 9.0x Rally Software Development Corp. United States 12.01 ‐61% 302.7 225.7 79.4 (24.9) NM 20.2% 2.8x NM Salesforce.com, Inc United States 57.53 ‐14% 35,611.1 37,113.7 4,766.6 3.1 0.1% 37.3% 7.8x NM ServiceNow, Inc. * United States 58.78 ‐18% 8,564.2 8,315.8 542.3 (84.3) NM 65.5% 15.3x NM Textura Corporation United States 26.40 ‐40% 671.2 604.3 58.9 (13.5) NM 0.0% 10.3x NM TIBCO Software Inc. United States 23.63 ‐11% 3,871.8 3,891.6 1,076.2 167.9 15.6% 2.4% 3.6x 23.2x Varonis Systems, Inc. United States 21.10 ‐63% 516.9 396.6 86.3 (12.1) NM 38.0% 4.6x NM
Adjusted Weighted Average 3.8x 9.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (13.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (39.4x)
34 | M&A and Investment Summary September 2014 Information & Business Services
. Strategic and Buyout acquisitions accounted for 52 percent of reported value during the month . IT Consulting/Systems Integration and Market Research were the most active subsegments with each seven transactions announced, worth $461 million and $205 million in value . Select acquisitions: • Cognizant Technology Solutions’ $2.7 billion acquisition of healthcare IT and service solutions provider TriZetto from Apax Partners at a valuation of 3.8x revenue and 14.2 EBITDA • Symphony Technology Group’s purchase of McGraw Hill Construction, a provider of construction industry data and analytics, from McGraw Hill Financial for $320 million. • Tribune Media Company’s wholly owned subsidiary Gracenote’s $50 million purchase of Baseline, which provides film and television information, data, and software (Petsky Prunier‐led transaction)
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 7 13% $461.1 8% 4 ‐ 0 ‐ 3 $461.1 Market Research 7 13% 205.0 4% 4 55.0 1 ‐ 2150.0 Logistics 5 9% 939.0 16% 1 178.0 1 ‐ 3761.0 Credit/Risk Management Information 4 7% 414.0 7% 1 350.0 1 ‐ 264.0 Healthcare Information 4 7% 93.3 2% 1 ‐ 0 ‐ 393.3 Marketing Data 4 7% 400.3 7% 1 50.0 1 320.0 2 30.3 Product/Price Information 4 7% 27.3 0% 1 ‐ 0 ‐ 327.3 Healthcare Consulting 3 5% 2,700.0 47% 3 2,700.0 0 ‐ 0 ‐ Other* 18 32% 452.0 8% 13 429.0 1 ‐ 423.0 Total 56 100% 5,692.0 100% 29 3,762.0 5 320.0 22 1,610.0
*Other includes BPO, Credit/Risk Consulting, Financial Consulting, Financial Information, Geo‐Demo Information, HR Consulting, HR information, and Printing Services
35 | M&A and Investment Summary September 2014 Information Services Public Company Valuation (1/2)
($ in Millions, except stock price data)
Financial & Credit/Risk Management Information Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Broadridge Financial Solutions, Inc. United States $41.63 ‐4% $ 4,976.2 $ 5,152.6 $ 2,558.0 $ 521.3 20.4% 5.2% 2.0x 9.9x Computershare Limited Australia 10.64 ‐8% 5,916.5 7,035.9 2,011.4 490.3 24.4% ‐0.2% 3.5x 14.4x CoreLogic, Inc. United States 27.07 ‐25% 2,467.1 3,789.2 1,311.0 236.9 18.1% 12.3% 2.9x 16.0x CoStar Group Inc. * United States 155.54 ‐29% 5,024.1 4,974.2 494.7 128.1 25.9% 20.9% 10.1x 38.8x DST Systems Inc. United States 83.92 ‐16% 3,334.4 3,922.9 2,682.4 423.5 15.8% 2.0% 1.5x 9.3x Dun & Bradstreet Corp. United States 117.47 ‐6% 4,272.4 5,561.3 1,662.7 495.1 29.8% 1.2% 3.3x 11.2x Envestnet, Inc. * United States 45.00 ‐11% 1,537.3 1,473.4 307.6 32.6 10.6% 66.4% 4.8x 45.2x Equifax Inc. United States 74.74 ‐7% 9,101.6 10,600.5 2,348.9 837.1 35.6% 6.4% 4.5x 12.7x Experian plc Ireland 15.95 ‐23% 15,795.1 19,674.4 4,840.0 1,677.0 34.6% 2.3% 4.1x 11.7x FactSet Research Systems Inc. United States 121.53 ‐6% 5,080.0 4,943.6 920.3 336.7 36.6% 7.3% 5.4x 14.7x Fair Isaac Corporation United States 55.10 ‐16% 1,771.4 2,208.3 757.7 197.1 26.0% 2.5% 2.9x 11.2x Fidelity National Information Services, Inc. United States 56.30 ‐4% 16,069.1 20,381.0 6,200.0 1,594.4 25.7% 4.6% 3.3x 12.8x Financial Engines, Inc. United States 34.22 ‐52% 1,770.8 1,489.6 263.0 59.2 22.5% 24.4% 5.7x 25.2x McGraw Hill Financial, Inc. United States 84.45 ‐3% 22,877.5 22,916.5 5,025.0 1,825.0 36.3% 5.3% 4.6x 12.6x Moody's Corporation United States 94.50 ‐2% 19,958.4 20,454.7 3,125.4 1,449.5 46.4% 6.7% 6.5x 14.1x Morningstar Inc. United States 67.90 ‐21% 3,036.6 2,818.2 724.5 218.1 30.1% 7.2% 3.9x 12.9x MSCI Inc. United States 47.02 ‐10% 5,268.0 5,382.6 1,081.7 445.4 41.2% 16.3% 5.0x 12.1x Reis, Inc. United States 23.59 ‐2% 261.9 245.5 38.1 9.4 24.7% 15.1% 6.4x 26.1x SEI Investments Co. United States 36.16 ‐5% 6,066.4 5,534.2 1,200.9 324.5 27.0% 13.3% 4.6x 17.1x Thomson Reuters Corporation United States 36.50 ‐3% 29,330.3 36,791.1 12,653.0 2,538.0 20.1% ‐1.8% 2.9x 14.5x Verisk Analytics, Inc. United States 60.89 ‐12% 10,136.7 10,988.8 1,661.8 755.2 45.4% 14.2% 6.6x 14.6x
Adjusted Weighted Average 4.3x 13.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (26.4x) ($ in Millions, except stock price data)
Marketing Information Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $16.55 ‐58% $ 1,276.8 $ 1,194.4 $ 1,082.6 $ 181.3 16.7% ‐0.2% 1.1x 6.6x Alliance Data Systems Corporation United States 248.27 ‐17% 13,785.9 23,781.3 4,735.6 1,327.0 28.0% 19.4% 5.0x 17.9x Brainjuicer Group Plc United Kingdom 6.89 ‐22% 87.1 83.0 40.4 6.5 16.1% 17.4% 2.1x 12.8x Cello Group Plc United Kingdom 1.50 ‐3% 127.0 143.7 270.0 18.1 6.7% 15.5% 0.5x 7.9x comScore, Inc. United States 36.41 ‐8% 1,244.2 1,230.6 305.0 26.5 8.7% 12.4% 4.0x 46.5x Cross Marketing Inc. Japan 4.32 ‐35% 77.9 76.9 68.5 7.3 10.7% 31.9% 1.1x 10.5x Ebiquity plc United Kingdom 1.91 ‐13% 136.5 174.8 111.0 19.6 17.7% 6.9% 1.6x 8.9x GfK SE Germany 43.39 ‐25% 1,583.9 2,141.0 1,847.9 277.2 15.0% ‐3.9% 1.2x 7.7x Harte‐Hanks Inc. United States 6.37 ‐32% 398.2 413.0 560.2 57.1 10.2% ‐1.9% 0.7x 7.2x InnerWorkings Inc. United States 8.09 ‐23% 418.8 484.4 977.3 20.6 2.1% 19.9% 0.5x 23.5x
36 | M&A and Investment Summary September 2014 Information Services Public Company Valuation (2/2)
($ in Millions, except stock price data)
Marketing Information (Contd.) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Intage Holdings Inc. Japan 12.57 ‐9% $ 252.8 $ 182.2 $ 391.6 $ 47.2 12.0% 6.6% 0.5x 3.9x Ipsos SA France 25.50 ‐42% 1,154.1 1,859.9 2,100.9 246.0 11.7% ‐5.2% 0.9x 7.6x NeuStar, Inc. United States 24.83 ‐51% 1,392.8 1,940.4 932.6 350.3 37.6% 8.2% 2.1x 5.5x Nielsen N.V. Netherlands 44.33 ‐11% 16,858.5 23,333.5 6,081.0 1,422.0 23.4% 10.6% 3.8x 16.4x Onvia Inc. * United States 4.61 ‐17% 34.1 26.5 22.2 0.2 0.8% 1.3% 1.2x 146.3x Pearson plc United Kingdom 20.12 ‐10% 16,304.2 19,832.5 7,990.9 1,247.5 15.6% ‐1.6% 2.5x 15.9x Rentrak Corporation * United States 60.94 ‐12% 749.7 730.5 81.3 (5.9) NM 60.9% 9.0x NM YouGov PLC United Kingdom 1.76 ‐16% 173.1 163.4 105.6 8.0 7.5% 11.6% 1.5x 20.5x
Adjusted Weighted Average 3.4x 16.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (55.2x)
Other Information Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Centaur Media plc United Kingdom $0.98 ‐21% $ 139.3 $ 155.6 $ 119.4 $ 13.8 11.5% 2.2% 1.3x 11.3x Corporate Executive Board Co. United States 60.07 ‐26% 2,026.3 2,441.8 865.0 180.1 20.8% 14.8% 2.8x 13.6x Forrester Research Inc. United States 36.86 ‐11% 672.5 538.8 303.4 29.6 9.8% 3.2% 1.8x 18.2x Gartner Inc. United States 73.47 ‐4% 6,531.5 6,593.4 1,897.9 326.4 17.2% 11.5% 3.5x 20.2x IHS Inc. United States 125.19 ‐13% 8,534.5 10,184.6 2,208.2 491.4 22.3% 30.3% 4.6x 20.7x Informa plc Switzerland 7.93 ‐15% 4,785.1 6,077.9 1,846.1 558.7 30.3% 2.3% 3.3x 10.9x National Research Corp. United States 37.10 ‐17% 399.8 378.1 95.4 30.5 32.0% 5.2% 4.0x 12.4x Markit Ltd. United Kingdom 23.35 ‐15% 4,224.5 4,710.0 1,006.2 387.4 38.5% 9.5% 4.7x 12.2x NIC Inc. United States 17.22 ‐34% 1,123.8 1,028.2 258.7 68.0 26.3% 9.3% 4.0x 15.1x Premier, Inc. United States 32.86 ‐15% 1,063.9 805.2 910.5 343.9 37.8% 4.7% 0.9x 2.3x Proofpoint, Inc. * United States 37.14 ‐19% 1,389.4 1,321.3 164.4 (24.3) NM 39.0% 8.0x NM Reed Elsevier plc(1) United Kingdom 16.03 ‐3% 42,691.9 49,631.3 9,944.2 3,154.3 31.7% 6.6% 5.0x 15.7x Solera Holdings Inc. United States 56.36 ‐21% 3,866.8 5,288.7 987.3 377.0 38.2% 17.8% 5.4x 14.0x Tarsus Group plc Ireland 3.54 ‐14% 354.5 419.7 118.4 40.4 34.2% 25.0% 3.5x 10.4x TechTarget, Inc. * United States 8.59 ‐6% 283.9 246.2 95.0 8.7 9.2% 2.6% 2.6x 28.3x The Advisory Board Company * United States 46.59 ‐34% 1,691.0 1,654.6 539.2 61.9 11.5% 14.7% 3.1x 26.7x UBM plc United Kingdom 9.46 ‐22% 2,321.6 3,127.4 1,237.9 310.6 25.1% ‐0.1% 2.5x 10.1x Wolters Kluwer NV Netherlands 26.65 ‐5% 7,897.8 10,726.1 4,466.5 1,101.8 24.7% ‐1.8% 2.4x 9.7x
Adjusted Weighted Average 4.3x 15.1x
(1) All financials are representative of the Reed Elsevier combined businesses, except per stock data, which represents Reed Elsevier (LSE:REL) *Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.3x)
37 | M&A and Investment Summary September 2014 Business Services Public Company Valuation (1/3)
($ in Millions, except stock price data)
Consulting Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CRA International Inc. United States 25.43 ‐11% 251.8 225.9 304.5 30.1 9.9% 16.3% 0.7x 7.5x FTI Consulting, Inc. United States 34.96 ‐25% 1,431.5 2,054.1 1,710.5 226.7 13.3% 6.4% 1.2x 9.1x Information Services Group, Inc. United States 3.80 ‐34% 141.0 179.8 207.9 19.3 9.3% 2.9% 0.9x 9.3x Navigant Consulting Inc. United States 13.91 ‐30% 679.4 858.3 725.8 111.3 15.3% ‐1.4% 1.2x 7.7x ICF International Inc. United States 30.79 ‐31% 599.5 724.3 982.7 87.6 8.9% 4.0% 0.7x 8.3x Huron Consulting Group Inc. United States 60.97 ‐16% 1,371.4 1,541.9 806.2 167.1 20.7% 19.1% 1.9x 9.2x The Hackett Group, Inc. * United States 5.96 ‐20% 176.4 195.3 203.6 17.7 8.7% 1.6% 1.0x 11.1x Towers Watson & Co. United States 99.50 ‐24% 6,986.4 6,374.8 3,481.9 627.3 18.0% 1.4% 1.8x 10.2x
Adjusted Weighted Average 1.6x 9.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (10.5x)
HR Services Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Automatic Data Processing, Inc. United States 83.08 ‐2% 40,050.0 40,418.3 12,206.5 2,558.9 21.0% 8.1% 3.3x 15.8x Barrett Business Services Inc. United States 39.49 ‐61% 283.5 208.7 578.7 27.6 4.8% 24.4% 0.4x 7.6x Capita plc United Kingdom 18.88 ‐7% 12,441.0 15,405.9 6,729.5 920.4 13.7% 16.4% 2.3x 16.7x Dice Holdings, Inc. United States 8.38 ‐10% 454.7 551.4 238.3 67.1 28.2% 17.2% 2.3x 8.2x Edenred SA France 24.65 ‐28% 5,574.5 6,480.6 1,183.8 369.8 31.2% ‐3.6% 5.5x 17.5x Insperity, Inc. United States 27.34 ‐31% 696.8 484.5 2,298.6 67.4 2.9% 4.3% 0.2x 7.2x LinkedIn Corporation * United States 207.79 ‐18% 25,539.4 23,177.7 1,847.2 196.4 10.6% 48.5% 12.5x 118.0x Marsh & McLennan Companies, Inc. United States 52.34 ‐2% 28,489.6 30,104.6 12,611.0 2,585.0 20.5% 4.6% 2.4x 11.6x Monster Worldwide, Inc. United States 5.50 ‐35% 488.5 661.9 788.1 86.2 10.9% ‐6.6% 0.8x 7.7x Paychex, Inc. United States 44.20 ‐4% 16,037.0 15,477.7 2,572.6 1,102.2 42.8% 9.0% 6.0x 14.0x Professional Diversity Network LLC United States 5.05 ‐12% 31.9 14.4 4.4 (2.7) NM ‐12.2% 3.3x NM Towers Watson & Co. United States 99.50 ‐24% 6,986.4 6,374.8 3,481.9 627.3 18.0% 1.4% 1.8x 10.2x TriNet Group, Inc. United States 25.75 ‐14% 1,779.7 2,255.1 1,963.7 158.8 8.1% 0.0% 1.1x 14.2x WageWorks, Inc. United States 45.53 ‐33% 1,602.3 1,260.9 230.0 42.6 18.5% 15.1% 5.5x 29.6x
Adjusted Weighted Average 3.3x 14.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (9.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (51.1x)
38 | M&A and Investment Summary September 2014 Business Services Public Company Valuation (2/3)
($ in Millions, except stock price data)
IT Consulting/Systems Integration Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accenture plc Ireland 81.32 ‐5% $ 51,069.0 $ 46,725.1 $ 30,002.4 $ 4,903.2 16.3% 5.0% 1.6x 9.5x Amdocs Limited Channel Islands 45.88 ‐6% 7,274.1 6,099.5 3,508.6 642.7 18.3% 5.6% 1.7x 9.5x Bechtle AG Germany 76.47 ‐9% 1,605.8 1,580.1 3,068.6 158.9 5.2% 13.3% 0.5x 9.9x Booz Allen Hamilton Holding Corporation United States 23.40 ‐8% 3,418.3 4,754.0 5,373.3 531.2 9.9% ‐6.6% 0.9x 8.9x Broadridge Financial Solutions, Inc. United States 41.63 ‐4% 4,976.2 5,152.6 2,558.0 521.3 20.4% 5.2% 2.0x 9.9x Business & Decision SA France 5.94 ‐16% 46.9 84.3 250.1 12.8 5.1% ‐5.0% 0.3x 6.6x Cap Gemini S.A. France 71.72 ‐4% 11,347.8 11,217.8 12,826.4 1,253.2 9.8% 0.2% 0.9x 9.0x CGI Group, Inc. Canada 33.85 ‐9% 10,514.6 12,687.5 9,369.3 1,460.7 15.6% 13.4% 1.4x 8.7x Cognizant Technology Solutions Corporation United States 44.77 ‐17% 27,216.8 23,087.6 9,600.7 2,021.1 21.1% 19.7% 2.4x 11.4x Computer Sciences Corporation United States 61.15 ‐7% 8,870.7 9,337.7 12,981.0 1,959.0 15.1% ‐6.1% 0.7x 4.8x CSG Systems International Inc. United States 26.28 ‐18% 911.6 982.4 753.3 120.6 16.0% ‐0.2% 1.3x 8.1x Digi International Inc. United States 7.50 ‐41% 186.4 98.1 192.5 11.6 6.0% 0.6% 0.5x 8.5x Globant S.A. * Luxembourg 14.07 ‐5% 469.2 458.5 179.1 20.5 11.4% 24.7% 2.6x 22.4x International Business Machines Corporation United States 189.83 ‐5% 189,372.9 226,253.9 98,267.0 25,160.0 25.6% ‐4.0% 2.3x 9.0x Infosys Ltd. India 60.53 ‐3% 34,589.2 29,999.8 8,391.0 2,321.0 27.7% 9.9% 3.6x 12.9x ITS Group France 10.59 ‐6% 80.4 93.1 203.4 12.2 6.0% 78.7% 0.5x 7.6x NCI, Inc. United States 9.51 ‐28% 123.2 110.6 324.7 18.7 5.8% ‐7.9% 0.3x 5.9x NTT Data Corporation Japan 36.01 ‐8% 10,100.0 11,997.2 12,630.1 1,827.4 14.5% 6.4% 0.9x 6.6x Perficient Inc. United States 14.99 ‐38% 516.0 580.4 391.0 52.3 13.4% 16.8% 1.5x 11.1x Tata Consultancy Services Limited * India 44.23 ‐2% 86,632.0 83,398.0 13,880.4 4,258.0 30.7% 30.0% 6.0x 19.6x Wipro Ltd. India 9.63 ‐3% 23,609.9 21,081.2 7,240.6 1,658.3 22.9% 18.2% 2.9x 12.7x
Adjusted Weighted Average 2.2x 9.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.3x) ($ in Millions, except stock price data)
Outsourced Services Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMREP Corporation * United States $4.66 ‐46% $ 37.5 $ 49.8 $ 84.8 $ 2.4 2.9% 1.0% 0.6x 20.5x Cenveo Inc. United States 2.47 ‐37% 167.1 1,417.5 1,922.2 151.2 7.9% 13.1% 0.7x 9.4x Communisis plc United Kingdom 0.97 ‐20% 192.7 251.5 516.3 35.7 6.9% 33.5% 0.5x 7.0x Cineplex Inc. * Canada 37.06 ‐8% 2,334.3 2,666.8 1,095.8 175.0 16.0% 8.5% 2.4x 15.2x Contax Participacoes S.A. Brazil 1.09 ‐33% 463.3 792.1 1,442.1 179.6 12.5% ‐2.2% 0.5x 4.4x Convergys Corporation United States 17.82 ‐27% 1,801.7 2,030.9 2,390.4 289.7 12.1% 18.7% 0.8x 7.0x Elanders AB Sweden 4.77 ‐31% 126.4 257.9 395.3 35.3 8.9% 43.5% 0.7x 7.3x Eniro AB Sweden 1.46 ‐84% 145.9 480.8 480.3 118.1 24.6% ‐9.2% 1.0x 4.1x Exlservice Holdings, Inc. United States 24.41 ‐22% 799.8 633.4 488.0 89.2 18.3% 5.6% 1.3x 7.1x Firstsource Solutions Limited India 0.65 ‐9% 431.6 599.0 507.9 59.9 11.8% 10.1% 1.2x 10.0x Genpact Limited Bermuda 16.32 ‐20% 3,530.5 3,989.1 2,183.1 380.6 17.4% 7.1% 1.8x 10.5x InnerWorkings Inc. * United States 8.09 ‐23% 418.8 484.4 977.3 20.6 2.1% 19.9% 0.5x 23.5x
39 | M&A and Investment Summary September 2014 Business Services Public Company Valuation (3/3)
($ in Millions, except stock price data)
Outsourced Services (Contd.) Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 09/30/14 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Luxoft Holding, Inc. * SwitzerlandSwitzerland 37.20 ‐15% $ 1,222.1 $ 1,195.8 $ 426.9 $ 77.3 18.1% 30.4% 2.8x 15.5x MAXIMUS, Inc. United States 40.13 ‐21% 2,688.5 2,506.8 1,649.8 268.5 16.3% 32.2% 1.5x 9.3x Quad/Graphics, Inc. United States 19.25 ‐48% 939.7 2,514.3 4,757.4 564.7 11.9% 7.9% 0.5x 4.5x Quintiles Transnational Holdings Inc. United States 55.78 ‐5% 7,099.5 8,531.1 3,977.4 635.8 16.0% 6.6% 2.1x 13.4x R.R. Donnelley & Sons Company United States 16.46 ‐22% 3,288.7 6,855.5 10,946.5 1,141.7 10.4% 6.5% 0.6x 6.0x Salmat Limited Australia 1.36 ‐33% 215.8 179.6 396.1 14.3 3.6% ‐3.2% 0.5x 12.6x Serco Group plc United Kingdom 4.64 ‐51% 2,494.0 3,444.9 6,801.0 292.3 4.3% ‐1.8% 0.5x 11.8x St Ives plc United Kingdom 3.24 ‐11% 404.6 424.7 524.4 79.8 15.2% ‐1.8% 0.8x 5.3x StarTek, Inc. United States 7.75 ‐1% 119.2 114.2 246.3 9.3 3.8% 16.1% 0.5x 12.3x Sykes Enterprises, Incorporated United States 19.98 ‐14% 874.9 749.4 1,302.4 125.4 9.6% 9.4% 0.6x 6.0x Teleperformance S.A. France 61.82 ‐8% 3,531.9 3,437.9 3,132.2 381.1 12.2% 2.7% 1.1x 9.0x TeleTech Holdings Inc. United States 24.58 ‐18% 1,209.0 1,224.6 1,212.8 157.5 13.0% 4.6% 1.0x 7.8x Trans Cosmos, Inc. Japan 19.60 ‐9% 806.3 555.3 1,729.4 99.6 5.8% 11.6% 0.3x 5.6x Transcom WorldWide SA Sweden 0.15 ‐27% 185.5 254.4 793.0 32.4 4.1% ‐3.0% 0.3x 7.9x Transcontinental Inc. Canada 13.10 ‐15% 1,029.6 1,522.0 1,854.8 345.9 18.6% ‐2.2% 0.8x 4.4x Vistaprint N.V. Netherlands 54.79 ‐6% 1,776.2 2,177.2 1,270.2 165.4 13.0% 8.8% 1.7x 13.2x West Corporation United States 29.46 ‐7% 2,475.6 6,026.3 2,720.2 681.5 25.1% 1.9% 2.2x 8.8x Xchanging PLC United Kingdom 3.05 ‐2% 744.3 592.8 1,006.9 97.5 9.7% ‐10.4% 0.6x 6.1x
Adjusted Weighted Average 1.8x 6.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (1.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (19.7x)
40 | M&A and Investment Summary September 2014 PPLLC Indices Valuation Summary
Current Summary Trading Valuation Information
Revenue Multiples Public Company Index MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 6.9x 2.0x 10.6x 10.6x Digital Advertising 3.8x 2.2x 5.3x 5.0x Marketing Technology 4.5x 3.4x 4.2x 4.0x Agency 1.1x 1.1x 1.4x 1.4x Marketing Services 1.4x 1.2x 2.7x 1.7x Traditional Media 2.6x 2.3x 3.2x 3.0x Technology 3.2x 2.5x 3.8x 3.7x Communications 2.1x 1.4x 2.3x 2.0x Software 5.7x 4.5x 4.8x 4.5x Information 3.6x 3.3x 4.3x 4.2x Business Services 1.3x 0.8x 2.9x 2.0x
EBITDA Multiples Public Company Index MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 28.0x 15.1x 31.0x 28.3x Digital Advertising 24.0x 14.7x 18.2x 17.8x Marketing Technology 48.6x 22.0x 15.7x 13.5x Agency 12.0x 9.8x 10.0x 9.9x Marketing Services 9.0x 7.9x 10.9x 11.7x Traditional Media 15.2x 10.1x 10.8x 10.9x Technology 22.3x 11.5x 12.7x 12.0x Communications 35.3x 14.1x 13.2x 11.0x Software 30.6x 15.4x 16.4x 13.6x Information 18.5x 14.0x 15.2x 15.0x Business Services 11.9x 9.4x 18.5x 11.6x
As of close of business on 09/30/14
*Calculation is market cap weighted and excludes revenue multiples that are 3 standard deviations above the mean and EBITDA multiples that are 2 standard deviations above the mean 41 | M&A and Investment Summary September 2014 PPLLC Indices LTM Share Pricing Trends
Digital Media/Commerce and Traditional Media Digital Advertising 170 LTM Index Performance 170 LTM Index Performance
155 155 (%) (%)
• S&P 500 – 16.4% • S&P 500 – 16.4 % 140 140 • Digital Media/Commerce – • Digital Advertising – 22.9% 125 20.7% 125 Performance Performance
110 110 • Traditional Media – 12.2%
Index 95 Index 95
80 80 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14
S&P 500 Digital Media/Commerce Traditional Media S&P 500 Digital Advertising
Marketing Technology Agency & Marketing Services 130 LTM Index Performance 155 LTM Index Performance
120 • S&P 500 – 16.4 % (%) 140 • S&P 500 – 16.4 % (%)
110 • Marketing Technology – 4.9% 125 • Agency – (1.4)%
100 110
Performance • Marketing Services – 3.3%
Performance
90 95 Index Index
80 80 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14
S&P 500 Marketing Technology S&P 500 Agency Marketing Services
Note: LTM as of 9/30/14 42 | M&A and Investment Summary September 2014 PPLLC Indices LTM Share Pricing Trends
Technology Communications 130 140 LTM Index Performance LTM Index Performance 130 (%) 120 (%)
• S&P 500 – 16.4% • S&P 500 – 16.4 % 120 110 • • Technology – 22.3% 110 Communications – 13.4% Performance
100
Performance 100
90 Index 90 Index
80 80 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14 S&P 500 Communications
S&P 500 Technology
Software Information & Business Services 130 LTM Index Performance 150 LTM Index Performance
120 • S&P 500 – 16.4 % 140 • S&P 500 – 16.4 % (%)
(%) 130 110 • Software – 6.4% • Information – 7.4% 120 100 • Business Services – 7.4% Performance 110 Performance
90 Index 100 Index 80 90 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14 Oct‐13 Dec‐13 Feb‐14 Apr‐14 Jun‐14 Aug‐14
S&P 500 Software S&P 500 Information Business Services
Note: LTM as of 9/30/14 43 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Values Disclosed Concur Technologies, Inc. Software SAP America, Inc.$ 8,032.1 TriZetto Corporation Information & Business Services Cognizant Technology Solutions Corporation 2,700.0 Mojang AB Digital Media/Commerce Microsoft Corporation 2,500.0 Ca rs .com Di gi ta l Advertising Gannett Compa ny, Inc. 2,500.0 Conversant, Inc. Digital Advertising Alliance Data Systems Corporation 2,365.3 The Attachmate Group, Inc. Software Micro Focus International plc 1,200.0 Move, Inc. Digital Advertising News Corpora ti on, Inc. 1,030.8 Ebates, Inc. Digital Advertising Rakuten, Inc. 1,000.0 Bluestem Brands, Inc. Digital Medi a /Commerce Ca pma rk Financial Group Inc. 565.0 SuperDerivatives, Inc. Information & Business Services Intercontinental Exchange, Inc. 350.0 Parago, Inc. Agency & Ma rketing Services Blackhawk Network, Inc. 290.0 Springfield Service Corporation Information & Business Services Conifer Health Solutions, LLC 235.0 Location Labs Marketing Technology AVG Technologies N.V. 233.0 FolioDynamix, Inc. Software Actua Corporation 210.0 Shanda Games Limited Digital Media/Commerce Haitong Securities Co., Ltd. 204.5 FircoSoft SAS Information & Business Services Reed Elsevier Group plc 194.0 XRS Corporation Information & Business Services Omnitracs, LLC 178.0 MicroEdge LLC Technology & Communications Blackbaud, Inc. 160.0 PAI Group, Inc. Software Sage Group plc 157.8 Harry & David Holdings, Inc. Digital Media/Commerce 1‐800‐Flowers.com, Inc. 142.7 KSNV‐TV Traditional Media Sinclair Broadcast Group, Inc. 120.0 Nurun, Inc. Agency & Ma rketing Services Publicis Groupe S.A. 114.4 Nexage, Inc. Digital Advertising Millennial Media , Inc. 108.0 FeedHenry Limited Software Red Hat, Inc. 82.0 INRIX, Inc. Information & Business Services Porsche Automobil Holding SE 55.0 Baseline, LLC Information & Business Services Gracenote, Inc. 50.0 Doosan Donga Co. Tra di ti ona l Media YES24 Co., Ltd. 24.5 Mobilethink A/S Technology & Communications Spirent Communications plc 20.0 DAU‐UP Digital Advertising XLMedia PL C 19.0 Brink Software, Inc. Marketing Technology PAR Technology Corporation 17.0 Meldium.com Software LogMeIn 15.0 Cl i cktool s Ltd. Marketing Technology Callidus Software, Inc. 14.0 Aristocrat Lotteries AB Digital Media/Commerce Playtech 13.8 Verecloud, Inc., Assets Technology & Communications Westcon Group, Inc. 12.0 Antcor S.A. Technology & Communications u‐blox AG 7.0 Gastronauci Digital Advertising Zomato Media 2.0 e‐Tivity Corpora ti on (APAC) Pty Ltd. Software ComOps Limited 1.1 MAC Venture Group, Inc. Agency & Ma rketing Services ValueSetters.com 0.2
44 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Ambito5 SRL Agency & Ma rketing Services Publicis Groupe S.A. $ ‐ Zweimaleins Agency & Ma rketing Services Publicis Groupe S.A. ‐ Chi s a no Marketing Communications Agency & Ma rketing Services Think Patented ‐ Go Direct Marketing Agency & Ma rketing Services York Mailing ‐ Methodologie Agency & Ma rketing Services Digital Kitchen ‐ The Pricing Institute Agency & Ma rketing Services Jacobson Consulting Applications ‐ LiveAreaLabs Inc. Agency & Ma rketing Services PFSweb, Inc. ‐ Teein.com Agency & Ma rketing Services Valentine McCormick Ligibel, Inc. ‐ Welcome Real‐time S.A. Agency & Ma rketing Services The Collinson Group LTD ‐ Consolidated PR Limited Agency & Ma rketing Services Four Communications Group plc ‐ TagPoints Agency & Ma rketing Services SmartFocus ‐ Skymall Ventures LLC Agency & Ma rketing Services Connexions Loyalty Travel Solutions ‐ Epigram Agency & Ma rketing Services Brand Union ‐ Bonfire Communications Agency & Ma rketing Services Lippincott ‐ AKM3 Agency & Ma rketing Services ZenithOptimedia ‐ Turner Duckworth Agency & Ma rketing Services Publicis Groupe S.A. ‐ Trylon SMR Agency & Ma rketing Services The CHR Group ‐ Hub Television Networks Digital Advertising Discovery Communications LLC ‐ EngageHD Digital Advertising Clearstream ‐ LocalVox Media, Inc. Digital Advertising The Berry Compa ny, LLC ‐ PlayHaven Digital Advertising Science Media LLC ‐ Fullscreen, Inc. Digital Advertising Otter Media ‐ VAN Digital Advertising Sharethrough, Inc. ‐ Cova ri o, Inc. Digital Advertising Dentsu Aegis Network, Inc. ‐ eWinery Solutions Digital Advertising Granbury Restaurant Solutions ‐ ADFOX Digital Advertising Yandex ‐ TowerSource Digital Advertising Mosaik Solutions, LLC ‐ Cellfire, Inc. Digital Advertising Catalina Ma rketing Corpora ti on ‐ Vidaao, Inc. Digital Advertising Skyword, Inc. ‐ Luminate, Inc. Digital Advertising Yahoo!, Inc. ‐ Tagroom Pty Ltd. Digital Media/Commerce Moko Social Media ‐ Path 36, LLC, Splice Digital Media/Commerce Vemory, Inc. ‐ OneHealth Solutions, Inc. Digital Medi a /Commerce Vi vera e ‐ Hitch Digital Media/Commerce Lyft, Inc. ‐ Justeat Brasil Serviços Online Ltda. Digital Media/Commerce iFood ‐ WineWeb.com Digital Media/Commerce Granbury Restaurant Solutions ‐ Experience Digital Medi a /Commerce Cox Enterprises, Inc. ‐ 45 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed SocialGrow, Inc. Digital Media/Commerce Unified Inbox Pte Ltd. $ ‐ UberSense, Inc. Digital Media/Commerce Hudl ‐ Panstoria, Inc. Digital Media/Commerce Forever, Inc. ‐ Invitetobuy.dk Digital Media/Commerce Mysale Group plc ‐ Make Believe Labs Digital Media/Commerce JibJab Media , Inc. ‐ Pheed Digital Media/Commerce Mobli Media , Inc. ‐ mytheresa.com GmbH Digital Media/Commerce Neima n Marcus Group, Inc. ‐ Flipter Digital Media/Commerce 1World Online ‐ Mediapeer GmbH Digital Media/Commerce Deluxe Enterprise Operations ‐ Polar Digital Media/Commerce Google, Inc. ‐ Byliner, Inc. Digital Media/Commerce Vook, Inc. ‐ Mamapedia Digital Media/Commerce Get It, LLC ‐ Sherpa.be N.V. Digital Medi a /Commerce Li ve Nation Entertainment, Inc. ‐ Corpora te Social Responsibility Digital Media/Commerce 3BL Media ‐ In Ticketing Digital Media/Commerce Vendini, Inc. ‐ Ultravisual Digital Media/Commerce Flipboard, Inc. ‐ mytaxi Digital Media/Commerce moovel GmbH ‐ RideScout Digital Media/Commerce moovel GmbH ‐ High Gear Media Digital Media/Commerce Internet Brands, Inc. ‐ Nutrition411.com Digital Media/Commerce HMP Communications LLC ‐ Cogenta Systems Ltd. Information & Business Services GfK SE ‐ SourceHOV, LLC Information & Business Services BancTec, Inc. ‐ The Benfield Group LLC Information & Business Services Arthur J Gallagher & Co. ‐ PatientKeeper, Inc. Information & Business Services HCA Holdings, Inc. ‐ Tydan IT LLC Information & Business Services The Aldridge Compa ny ‐ T&H Global Holdings LLC Information & Business Services Sedgwick Cl a i ms Management Services, Inc. ‐ BlueGlue Information & Business Services Seven Step RPO ‐ COBA, Inc. Information & Business Services Groupe Berger‐Levrault ‐ Printing Icon Information & Business Services Next Century Publishing Compa ny ‐ Genares Information & Business Services Sabre Corpora ti on ‐ Plus Talent Information & Business Services SFX Entertainment, Inc. ‐ Quixel Research LLC Information & Business Services gap intelligence ‐ Optimum Medical Ma nagement Informa tion & Business Services PracticeMax, Inc. ‐ AW Systems, Inc. Information & Business Services DataArt, Inc. ‐ The Planning Shop International Information & Business Services Adelphi Group Ltd. ‐ Optimum Talent Executive Search Information & Business Services Conroy Ross Partners Search & Consulting ‐ Global Intelligence Alliance Group Oy Information & Business Services M‐Brain Oy ‐ 46 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Kubra Data Transfer Information & Business Services Hearst Communications, Inc. $ ‐ IRISmaps, Inc. Information & Business Services OmniEarth, Inc. ‐ Ituma GmbH Information & Business Services Logicalis Group ‐ AlphaGraphics, Inc. Information & Business Services Western Capi tal Resources, Inc. ‐ CVPartners, Inc. Information & Business Services Addison Group ‐ Zufog Marketing Technology DSA Property Group ‐ ShopKick, Inc. Marketing Technology SK Planet Co., Ltd. ‐ BLUERIDGE Analytics, Inc. Marketing Technology Bentley Systems, Inc. ‐ MethodCare, Inc. Marketing Technology ZirMed, Inc. ‐ Zeetl Inc. Marketing Technology HootSuite Media , Inc. ‐ Loadosophia Marketing Technology BlazeMeter, Ltd. ‐ Concept Feedback LLC Marketing Technology Wingify ‐ SeedMail Ma rketing Technology ClearSlide, Inc. ‐ commercetools GmbH Marketing Technology REWE Digital GmbH ‐ Aviary, Inc. Marketing Technology Adobe Systems, Inc. ‐ LaunchBit Marketing Technology BuySellAds.com, Inc. ‐ Opinionmeter International Marketing Technology PeriscopeIQ ‐ Visible Technologies Marketing Technology Vocus, Inc. ‐ Front Porch Digital Inc. Marketing Technology Oracle Corpora ti on ‐ Adquant Ltd. Marketing Technology Kenshoo Ltd. ‐ Content Sa vvy, Inc. Marketing Technology SmartFocus ‐ Marqui, Inc. Marketing Technology Givex Corpora ti on ‐ Vistapointe Networks Marketing Technology Brocade Communications Systems, Inc. ‐ Eventjoy, Inc. Marketing Technology Ticketmaster Belgium ‐ LongoMatch Marketing Technology Fluendo S.A. ‐ Agence Piranha, Inc. Marketing Technology Human Equation, Inc. ‐ REV Solutions, Inc. Marketing Technology PFSweb, Inc. ‐ ShopIgniter, Inc. Marketing Technology Mixpo, Inc. ‐ MindMatics AG Marketing Technology Acision Pte LTD. ‐ DocuSphere Marketing Technology Tungsten Network, Inc. ‐ Branderati Marketing Technology Sprinklr ‐ PrinterOn Marketing Technology Samsung Electronics ‐ Applogix Marketing Technology Aqua ‐ NOMISe Software Healthcare Insights LLC ‐ MedSynergies, Inc. Software UnitedHealth Group, Inc. ‐ S21sec Software Sonaecom ‐ Ubisecure Solutions Oy Software GMO GlobalSign, Inc. ‐ 47 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Figlo BV Software Advicent Solutions, L.P. $ ‐ Dolphin Software AS Software Loxysoft AB ‐ Rivet Software, Inc. Software Equity Administration Solutions, Inc. ‐ ePharmaSolutions, Inc. Software WIRB‐Coperni cus Group ‐ Bookpad Software Yahoo!, Inc. ‐ Seon Design, Inc. Software Safe Fleet ‐ Algentis LLC Software HUB International Limited ‐ ClarityRay Software Yahoo!, Inc. ‐ nScaled, Inc. Software Acronis International GmbH ‐ FreeGreen, Inc. Software Houseplans LLC ‐ HelloScheduling.com Software Hrdirect ‐ DiMS! Software Electronics for Imaging, Inc. ‐ GrabCAD Software Stratasys Ltd. ‐ Acuity Business Solutions, LLC Software Stambaugh Ness Business Solutions, LLP ‐ SolusVM Software OnApp Limited ‐ VostroCloud Software Runge ICT Group ‐ Eucalyptus Systems, Inc. Software Hewlett‐Packard Compa ny ‐ Manza nita Systems LLC Software DTS, Inc. ‐ C2C Systems Software Barracuda Networks, Inc. ‐ Locate1Plus, Inc. Software Imperalis Holding Corpora ti on ‐ Agent Evolution Software IDX, LLC ‐ Thales Telematics Software Pointer Telocation Ltd. ‐ Gehry Technologies Software Trimble Navigation Limited ‐ Ca na Pl us Consulting Software Genesys.com ‐ HiSoftware, Inc. Software Cryptzone Group AB ‐ IMPACT Overdraft Software and Solutions Business Software Velocity Solutions, Inc. ‐ Rise Health Software Best Doctors, Inc. ‐ Vicious Cycl e Software, Inc. Software Little Orbit, LLC ‐ InfoSolution Software BRQ IT Services ‐ Eclipse Legal Systems Software Capita plc ‐ SoftCode, Inc. Software Tyler Technologies ‐ Requestec Technology & Communications Blackboard, Inc. ‐ Apcera, Inc. Technology & Communications Ericsson, Inc. ‐ TalkPoint Holdings Technology & Communications TBA Global, LLC ‐ OrlyAtomics, Inc. Technology & Communications Mesosphere, Inc. ‐ Metacloud, Inc. Technology & Communications Cisco Systems, Inc. ‐ DirectRestore LLC Technology & Communications Axcient, Inc. ‐ 48 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Strategic Transactions Target Target Segment Buyer/Investor Reported TV Strategic Undisclosed Movirtu Limited Technology & Communications BlackBerry Ltd. $ ‐ Space Monkey, Inc. Technology & Communications Vivint, Inc. ‐ Think Big Analytics, Inc. Technology & Communications Teradata Corpora ti on ‐ tradeMonster Technology & Communications OptionsHouse, LLC ‐ BackupAgent BV Technology & Communications Acronis International GmbH ‐ One Three Media Traditional Media MGM Studios ‐ IRN/USA Radio Network Traditional Media Cross Platform Media LLC ‐ Parade Publications Traditional Media Athlon Media Group ‐ WTVA Traditional Media Heartla nd Media, LLC ‐ 1049 Productions LLC Traditional Media VIA Productions ‐ Soda Pictures Traditional Media Thunderbird Films, Inc. ‐
Buyout Transactions Target Target Segment Buyer/Investor Reported TV Buyout Deals Values Disclosed TIBCO Software, Inc. Marketing Technology Vista Equity Partners$ 4,300.0 Compuwa re Corporation Software Thoma Bravo, Inc. 2,500.0 McGraw Hill Construction Information & Business Services Symphony Technology Group 320.0 BeyondTrust, Inc. Software Veritas Capital 310.0 Target Target Segment Buyer/Investor Reported TV Buyout Deals Undisclosed Facile Digital Advertising Oakley Ca pi ta l Investments, Ltd. $ ‐ Covena nt Review, LLC Information & Business Services Leeds Equity Partners , LL C ‐ OneTouchPoint Information & Business Services ICV Ca pi ta l Partners LLC ‐ Ca ps tone Logistics LLC Information & Business Services The Jordan Compa ny ‐ Aon eSolutions Information & Business Services Symphony Technology Group ‐ Medical Payment Exchange Software The Riverside Compa ny ‐ Incognito Software, Inc. Softwa re Vola ris Group, Inc. ‐ Doxim, Inc. Software Strattam Capi tal ‐ Idera, Inc. Software TA Associates ‐ Questex Media Group Traditional Media Sha mrock Ca pi ta l Advisors, Inc. ‐
49 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed XPO Logistics, Inc. Information & Business Services GIC Special Investments$ 700.0 Beijing Shiji Information Technology, Co., Ltd. Information & Business Services Alibaba Group Holding Ltd. 458.7 Privia Health, LLC Software Goldman Sachs Affiliate 400.0 Delivery Hero Digital Media/Commerce Insight Venture Partners 350.0 Vice Media Digital Media/Commerce Technology Crossover Ventures 250.0 Pacific DataVision, Inc. Technology & Communications (Private Investors) 218.0 Qualtrics Information & Business Services Insight Venture Partners 150.0 DataStax, Inc. Software Kleiner Perkins Caufield & Byers 106.0 Magnitude Software Marketing Technology Audax Group 100.0 ironSource Ltd. Softwa re (Priva te Investors) 85.0 Credi t Karma, Inc. Digital Media/Commerce Google Capital 75.0 IEX Group, Inc. Technology & Communications Spark Capital 75.0 DXY Information & Business Services Tencent Holdings Ltd., Investment Arm 70.0 HootSuite Media , Inc. Marketing Technology Accel Partners 60.0 MetricStrea m, Inc. Information & Business Services Sageview Capital 60.0 Radius Intelligence, Inc. Marketing Technology BlueRun Ventures 54.7 Dollar Shave Cl ub, Inc. Digital Media/Commerce Technology Crossover Ventures 50.0 Teladoc, Inc. Software Jafco Ventures 50.0 Spirit Music Group, Inc. Traditional Media Fortress Credi t Corp. 50.0 Daojia Digital Medi a /Commerce (Pri va te Investors) 50.0 Palantir Technologies Marketing Technology (Private Investors) 50.0 xAd Digital Advertising Emergence Capital 50.0 Remind101, Inc. Technology & Communications Kleiner Perkins Caufield & Byers 40.0 Docker, Inc. Software Sequoia Capital 40.0 Fastly, Inc. Marketing Technology August Ca pi ta l Management 40.0 Veracode, Inc. Software Wellington Ma nagement Company 40.0 GlobalTranz, Inc. Information & Business Services Providence Equity Partners, Inc. 40.0 InnoLight Technology Corporation Technology & Communications Google Capital 38.0 Miles Media Group, LLLP. Agency & Ma rketing Services Monroe Capital 37.0 Invoice2go Corporation Technology & Communications Accel Partners 35.0 Ping Identity Corporation Software Kohlberg Kravis Roberts & Compa ny L.P. 35.0 LightSpeed Marketing Technology Accel Partners 35.0 HootSuite Media , Inc. Marketing Technology Fidelity Investments 35.0 CommonFloor.com Digital Advertising Tiger Global Management, LLC 30.0 BrandMaker, Inc. Marketing Technology Pinova Capital 30.0 QuBit Digital Ltd. Information & Business Services Balderton Capital 26.0 FiveStars, Inc. Agency & Ma rketing Services Menlo Ventures 26.0 iHealth Lab, Inc. Software Xiaomi Ventures 25.0 AppNexus, Inc. Marketing Technology WPP Group 25.0 Formation Data Systems, Inc. Software Pelion Venture Partners 24.2 FieldAware US, Inc. Marketing Technology OpenView Venture Partners 24.0 Sandlot Solutions, LLC Information & Business Services Lemhi Ventures, Inc. 23.3 50 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Symphony Commerce, Inc. Marketing Technology CRV$ 21.5 Good Eggs, Inc. Information & Business Services Index Ventures 21.0 BoomTown Digital Advertising Adams Street Partners, LL C 20.1 Inspirato LLC Digital Media/Commerce W Capi tal Partners 20.0 Jet.com Digital Media/Commerce Western Technology Investment 20.0 JW Player Digital Advertising Greenspring Associates 20.0 Black Duck Software, Inc. Marketing Technology General Ca ta l ys t Partners LLC 20.0 Netpulse Media Network, Inc. Traditional Media Nokia Growth Partners 18.6 Jiff, Inc. Software Venrock Associates 18.0 MindMixer Digita l Media/Commerce Dundee Venture Capital 17.0 One, Inc. Technology & Communications H&Q Asia Pacific 16.7 RJMetrics Agency & Ma rketing Services August Ca pi ta l Management 16.5 365 Data Centers Technology & Communications Crosslink Capital 16.0 BetterWorks, Inc. Digital Media/Commerce AME Cl oud Ventures 15.5 BLiNQ Networks, Inc. Technology & Communications WIN Fund 15.1 Datorama Marketing Technology Marker Financial Advisors LLC 15.0 Accuris Networks Technology & Communications Ulster Bank Diageo Venture Fund 15.0 Agari Data, Inc. Software Alloy Ventures 15.0 Numerify, Inc. Marketing Technology Lightspeed Venture Partners 15.0 SideCar Technologies, Inc. Digital Media/Commerce Avalon Ventures 15.0 Frank & Oak, Inc. Digital Media/Commerce Goodwater Capital 15.0 Pro.com LLC Information & Business Services Maveron, LLC 14.0 Silvercar, Inc. Digital Media/Commerce Aus tin Ventures 14.0 FlightCar, Inc. Digital Media/Commerce GGV Capital 13.5 Array Health Technology & Communications Noro‐Moseley Partners 13.0 Virgin Mobile Centra l and Eastern Europe Technology & Communications Delta Partners 13.0 eSentire, Inc. Software Georgian Partners 13.0 Ca ta wi ki Di gi ta l Media/Commerce Accel Partners 12.7 CrowdFl ower Softwa re Ca nva s Venture Fund 12.5 Duo Security, Inc. Software Benchmark Capital 12.0 ClassPass, Inc. Digital Advertising (Angel Investors) 12.0 KIN Community Digital Advertising Corus Entertainment, Inc. 12.0 Hazelcast, Inc. Software Earlybird Venture Ca pi ta l GmgH & Co. KG 11.0 Kinvey Softwa re Verizon Ventures 10.8 Sharethrough, Inc. Digital Advertising British Sky Broadcasting Group plc 10.0 Uuzuche.com Digital Media/Commerce Lightspeed China 10.0 Performance Horizon Group Limited Agency & Ma rketing Services Mithril Ca pi ta l Management LLC 10.0 HoneyBook, Inc. Information & Business Services Aleph VC 10.0 Swrve Media, Inc. Marketing Technology Acero Ca pi ta l Management LLC 10.0 Kinnek, Inc. Digital Advertising Matrix Partners 10.0 Mediamorph Marketing Technology Liberty Global, Inc. 10.0 LightCyber, Inc. Software Battery Ventures 10.0 51 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Watchfinder & Co. Digital Media/Commerce Piton Capital$ 10.0 Cons ervi s Corporation Software Cultivian Sandbox Ventures 10.0 Netsertive, Inc. Marketing Technology Square 1 Bank 10.0 Continuity Control Information & Business Services River Ci ti es Capi tal Fund 10.0 IndoorAtlas Technology & Communications Vera Ventures 10.0 Centa ge Corporation Software TVC Ca pi ta l 9.5 Cl ub W, Inc. Digital Media/Commerce Bessemer Venture Partners 9.5 Jack Erwin, Inc. Digital Media/Commerce Brown Shoe Co., Inc. 9.0 Wellframe, Inc. Marketing Technology DFJ 8.5 Gousto Digital Media/Commerce Unilever Ventures 8.2 EatWith Media Ltd. Digital Advertising Greylock Partners 8.0 CartoDB Software Earlybird Venture Ca pi ta l GmgH & Co. KG 8.0 adeven Marketing Technology Active Venture Partners 7.6 Social Chorus , Inc. Marketing Technology Kohlberg Ventures LLC 7.5 Webinar.ru Technology & Communications Intel Capi tal 7.3 Fundrise LLC Digital Media/Commerce (Angel Investors) 7.0 WorkPop Information & Business Services Trinity Ventures 7.0 aWhere, Inc. Technology & Communications Elixir Ca pi ta l 7.0 Lob.com, Inc. Software Polaris Partners 7.0 Massdrop, Inc Marketing Technology Kleiner Perkins Caufield & Byers 6.5 AnyPresence, Inc. Technology & Communications CNF Investments LLC 6.0 TriggerMail, Inc. Digital Advertising FirstMark Capi tal 6.0 Manifest Digital, Inc. Agency & Ma rketing Services NewSpring Ca pi ta l 6.0 Skillz, Inc. Software Atlas Venture 6.0 freee Ltd. Software Pavilion Communication Services Ltd. 6.0 EdCast, Inc. Software SoftBank Ca pi ta l 6.0 Placemeter, Inc. Information & Business Services New Enterprise Associates 6.0 Sentrix Ltd. Software Magma Venture Partners 6.0 Breather Products, Inc. Digital Advertising RRE Ventures 6.0 365Scores.com Digital Media/Commerce Leta Ca pi ta l 5.5 LiveAction, Inc. Software Cisco Investments 5.4 Apptentive, Inc. Software SurveyMonkey, Inc. 5.3 AltspaceVR Technology & Communications Dolby Family Ventures 5.2 iVinci Health LLC Software Intermountain Healthcare 5.0 Delta ID, Inc. Software Intel Capi tal 5.0 musiXmatch Digital Media/Commerce Programma 101 5.0 Splice.com Software True Ventures 4.5 Be‐Bound, Inc. Technology & Communications Global Corpora te Investment Holding 4.5 Core2 Group, Inc. Information & Business Services Blue Chi p Venture Compa ny 4.3 Newsela Digital Media/Commerce Owl Ventures 4.1 Argus Cyber Security Ltd. Software Magma Venture Partners 4.0 Content Analytics, Inc. Marketing Technology Almaz Ca pi ta l Partners 4.0 Gametime United, Inc. Digital Media/Commerce Accel Partners 4.0 52 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Yashi, Inc. Digital Advertising PNC Bank$ 4.0 Cl oudyn Ltd. Technology & Communications Titanium Investments 4.0 Tink AB Digital Media/Commerce Sunstone Capi tal A/S 4.0 RxResults Information & Business Services Ansley Equity Partners 4.0 Fuel Digital Media/Commerce Middle East Venture Partners 3.5 Lodgeo Information & Business Services Javest Investment Fund 3.3 Beyond Verbal Communications Ltd. Marketing Technology Winnovation 3.3 ShiftPlanning, Inc. Software Point Nine Ca pi ta l 3.2 WebTeb Digital Media/Commerce Sadara Ventures 3.2 WeiChaiShi Technology & Communications ClearVue Partners 3.2 DynAdmic Digital Advertising XAnge Private Equity 3.0 Branch Metrics Marketing Technology New Enterprise Associates 3.0 Wedding Spot, Inc. Digital Advertising Atlas Venture 3.0 Curbs ta nd LLC Digital Medi a /Commerce (Pri va te Investors) 3.0 Anews, Inc. Digital Media/Commerce TMT Investments PLC 3.0 Adinch, Inc. Digital Advertising TMT Investments PLC 3.0 Odilo Marketing Technology Active Venture Partners 2.8 Bellabox Digital Media/Commerce Allure Media 2.7 POW Digital Medi a /Commerce Col umbi a Pacific Advisors, LLC 2.5 PowWow, Inc. Softwa re OurCrowd 2.5 Teleport, Inc. Marketing Technology Andreessen Horowitz 2.5 Akeneo SAS Information & Business Services Alven Ca pi ta l Partners 2.4 Shuttlerock Ltd. Digital Advertising Opt, Inc. 2.4 Auth0, Inc. Software Bessemer Venture Partners 2.4 Sendwithus Marketing Technology Baseline Ventures 2.3 Matchbook Labs, Inc. Marketing Technology Salesforce Ventures 2.3 ActivityHero, Inc. Digital Advertising Inventus Ca pi ta l Partners 2.2 Qzzr Digital Media/Commerce Kickstart Seed Fund 2.0 Favor Digital Media/Commerce Silverton Partners 2.0 Shippo Digital Advertising SoftTech VC, Inc. 2.0 HowGood Digital Media/Commerce Firs tMa rk Capi tal 2.0 TheTake Digital Advertising Halic 2.0 DWNLD Digital Media/Commerce The Cherni n Group 2.0 Measurabl, Inc. Marketing Technology Crosscut Ventures 2.0 Apropose, Inc. Marketing Technology New Enterprise Associates 1.9 Cord Project, Inc. Technology & Communications Metamorphic Ventures 1.8 Axial Healthcare Marketing Technology BlueCross BlueShield Venture Partners, L.P. 1.8 Tinybeans Pty Ltd. Digital Medi a /Commerce (Pri va te Investors) 1.7 PeerSpace, Inc. Digital Media/Commerce Structure Ca pi ta l 1.5 A/B Tasty Marketing Technology Kima Ventures 1.4 Edufii Digital Media/Commerce DFJ Frontier 1.4 Tapdaq Limited Digital Advertising Balderton Ca pi ta l 1.4 Privcap Media LLC Digital Medi a /Commerce (Pri va te Investors) 1.3 53 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Values Disclosed Chobol a bs , Inc. Digital Medi a /Commerce Innova ti on Endeavors LL C $ 1.3 Memorado GmbH Digital Media/Commerce Sunstone Capi tal A/S 1.3 Kueski, Inc. Technology & Communications CrunchFund 1.3 Dagne Dover Digital Media/Commerce 2020 Ventures 1.3 Sgrouples, Inc. Digital Media/Commerce (Angel Investors) 1.2 Sobrr Digital Media/Commerce IDG Ventures 1.1 Telynx, Inc. Technology & Communications (Private Investors) 1.0 Blinkfire Analytics, Inc. Marketing Technology FG Angels 1.0 Cha rts pa n Medical Technologies LLC Digital Medi a /Commerce (Pri va te Investors) 1.0 BlueBridge Networks Technology & Communications (Private Investors) 1.0 TrustedCompany.com Digital Media/Commerce Tengelmann Ventures 1.0 Glamping Hub, Inc. Digital Media/Commerce Axon Partners Group 1.0
Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Undisclosed Pris tine Inc. Digital Advertising Capital Factory $ ‐ DocuSign, Inc. Digital Media/Commerce Telstra Ventures ‐ Just Sales Digital Media/Commerce (Angel Investors) ‐ Col ores ci ence, Inc. Digital Media/Commerce Longwood Fund ‐ Cl i ck Jogos Digital Media/Commerce H.I.G. Ca pi ta l LLC ‐ eShakti.com Pvt Ltd. Digital Media/Commerce IvyCap Ventures ‐ CheckBonus Srl. Digital Medi a /Commerce Cus todi di Successo ‐ NeoSystems, Inc. Information & Business Services OFS Ca pi ta l ‐ Doutissima Information & Business Services DFJ Espirit ‐ Ci gni fi , Inc. Information & Business Services Omidyar Network ‐ Whale Path, Inc. Information & Business Services TMT Investments PLC ‐ Context Relevant Marketing Technology The Goldman Sachs Group, Inc. ‐ SwipetoSpin Marketing Technology Stonehenge Growth Equity Partners ‐ New Vision Ltd. Marketing Technology Withfounders ‐ QuanTemplate Marketing Technology Anthemis Group ‐ Ifbyphone, Inc. Marketing Technology NewSpring Ca pi ta l ‐ Elastic Path Software, Inc. Marketing Technology BDC IT Venture Fund ‐ ItsOn, Inc. Marketing Technology Cisco Systems, Inc. ‐ Mhelpdesk.com Marketing Technology HomeAdvisor, Inc. ‐ MRO Corporation Software Imperial Ca pi ta l Group Ltd. ‐ MemSQL, Inc. Software In‐Q‐Tel ‐ F.W. Davison & Co. Software Accel‐KKR, LLC ‐ Delta Data Software, Inc. Software Accel‐KKR, LLC ‐ Zipari, Inc. Software Vertical Ventures LLC ‐ CyActi ve Security Software Siemens Venture Ca pi ta l ‐ Vahna, Inc. Softwa re (Priva te Investors) ‐ 54 | M&A and Investment Summary September 2014 All Segments ($ in Millions)
Venture/Growth Capital Transactions Target Target Segment Buyer/Investor Reported TV VC/Growth Capital Undisclosed Semmle Limited Software Accel Partners $ ‐ LightCyber, Inc. Software Battery Ventures ‐ Activate Healthcare, LLC Software Spring Mountain Ca pi ta l , LP ‐ Docupace Technologies, Inc. Technology & Communications RCS Ca pi ta l Corpora ti on ‐ Quobyte GmbH Technology & Communications Target Partners ‐ Signalhorn AG Technology & Communications Metric Ca pi ta l Partners ‐ Signalhorn AG Technology & Communications Metric Ca pi ta l Partners ‐ Compl ete Innovations, Inc. Technology & Communications Madison Dearborn Partners, Inc. ‐ RetailCapital, LLC Technology & Communications Flexpoint Ford LLC ‐
55 | M&A and Investment Summary September 2014 Petsky Prunier: Maximizing Shareholder Value
Overview
. Founded in 1999 . Focused on the technology, marketing, media, eCommerce, and healthcare industries • More than 35 focused professionals . Unique combination of investment banking and consulting expertise . New York, Palo Alto, Las Vegas, Chicago, Boston, 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 . With strategic consulting firm Winterberry Group, one of the largest industry‐specific advisors providing strategic and transactional services . International reach enhanced through our partnership with investment bank Altium, which operates from eight offices across Europe . Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker‐dealer
. Sell‐Side Representation . Technology . Strategic Development and Competitive Analysis . Capital Raising and Private Placements . Marketing . M&A Transaction Due Diligence Support and . Corporate Divestitures . Media Valuation Analysis . M&A Advisory . eCommerce . Acquisition Strategy and Target Identification . Fairness Opinions . Healthcare . Publishing and Thought Leadership
56 | M&A and Investment Summary September 2014 Petsky Prunier was Ranked #1 by Bloomberg in 2011 – 2013 for Mid‐Market Internet & Advertising Transactions
Rank Advisor Deal Count 1Petsky Prunier LLC 44 2Goldman Sachs & Co. 35 3Jordan Edmiston Group, Inc. 31 4Morgan Stanley 29 4Nomura Holdings, Inc. 29 4GCA Savvian Group Corp. 29 7PwC 24 7 China Renaissance Partners 24 9KPMG Corporate Finance 22 10 Sumitomo Mitsui Financial Group, Inc. 20
Based on number of deals announced in 2011 – 2013 valued at $500 million or less
More than 60 transactions closed since 2011: . Ranging from strategic M&A transactions, including sales and divestitures, to private equity recaps, to growth equity and late stage venture capital financings . Across a broad universe of industries, including digital advertising and marketing, eCommerce and digital media, technology and software, information services, and healthcare
57 | M&A and Investment Summary September 2014 International Partnership with Altium
Description Network
. Altium provides M&A and corporate finance advisory services to companies, private equity firms, and entrepreneurs New York Palo Alto Madrid Zurich Las Vegas Chicago Manchester Frankfurt . European‐based, mid‐market financial advisory group, Boston Tampa London Milan Paris Munich employee‐owned and truly independent
. A leading advisor for more than 25 years
. Founded as the corporate finance arm of private equity investor Apax Partners
. Operates eight international offices in Europe with additional partnerships in the U.S. and Asia
. Completed 50+ technology transactions across 12 countries in the past five years
. Allegro Advisors is a leading provider of investment banking services to corporations and public institutions in India with India Beijing Shanghai offices in Bangalore, Mumbai, Delhi
. Hina Group has provided M&A advisory and corporate finance services on 50+ transactions in China
58 | M&A and Investment Summary September 2014 Representative Recent Transactions
$50,000,000
a disruptive, rapidly a leading SaaS provider of social intelligence, expanding marketplace for a leading targeted direct marketing a leading SaaS‐based, cross channel analytics, insights, and engagement insurance clicks, calls, and leads the largest independent eCommerce the leading film and television information, a digital independent digital and company that connects new movers a leading global SaaS‐based campaign management platform has been sold to data, and related software company experience design agency tag management, data management, retailer of promotional products with local business has sold a majority stake to for B2C marketers has been sold to has acquired has merged with an affiliate of and marketing attribution provider has been sold to has been sold to which is being combined with has been sold to
a division of both portfolio companies of and a social media marketing company (NYSE: WTM)
a portfolio company of a Berlin‐based worldwide travel solution a technology company delivering highly a leading provider of transaction‐based a leading provider of data‐driven provider for premium transportation targeted programmatic marketing media cost databases and software a leading provider of online customer enrollment marketing solutions to a consumer enthusiast media one of the largest independent solutions using unstructured data for television, radio, and digital acquisition services to the higher education institutions and commerce company in‐store media networks in the U.S has received a double‐digit million Euro has sold advertising cost analysis insurance industry investment led by has received a $16MM Series B has been sold to has been sold to has acquired select assets of investment led by has been sold to has been sold to Sample Management Business to (NYSE: RATE)
has sold a leading UK‐based supplier of a premier global provider of SaaS‐based the largest provider of cloud‐based SaaS has sold healthcare software and IT services online brand protection and a leading provider of social software tools for printing signs, labels, and tags, one of the largest digital agencies solutions and digital marketing services along with digital subsidiary a portfolio company of domain recovery solutions and publishing digital displays for retailers a leading developer of popular for some of the world’s largest brands, a portfolio company of has been sold to real‐money and social gaming one of just thirteen Facebook Strategic has been sold to Preferred Marketing Developers (sPMD) a provider of online travel guides for top specializing in retail, digital, shopper has been sold to destinations around the world has been sold to has been sold to has received a $68MM minority marketing, and consumer services a unit of to investment from to
(Nasdaq: RNWK) (AIM: EMIS) (Euronext Amsterdam: WKL) (ENXTPA: PUB) (Nasdaq: RNWK) (NYSE: LXK) (NYSE: GCI)
a leading digital advertising monetization and a leadinga dynamic provider display of transportation media and ‐based shopper marketing partner for a leading provider of digital production eCommerce retailers a real‐time behavioral digitalretargeting media company networks services to brands and agencies a leader in technology and global in‐app the top independent a portfolio company of advertising company advertising for Facebook, direct‐to‐consumer marketer of has received a mezzanine debt Apple (iOS), and Android developers a provider of a cloud‐based integration a leader in multichannel retail, dental savings plans has been acquired by has been sold to hasinvestment been acquired from by platform for the digital marketing industry ecommerce and loyalty marketing services has been sold to has been sold to has received $66MM investment has received $15MM financing from led by has been sold to
with financing from (NYSE: AOL) (NYSE: ACN) (JASDAQ:4755)
59 | M&A and Investment Summary September 2014