April 2013 M&A and Investment Summary
Expertise. Commitment. Results.
M&A & INVESTMENT SUMMARY APRIL 2013 1 TABLE OF CONTENTS
Overview of Monthly M&A and Investment Activity 3 Monthly M&A and Investment Activity by Industry Segment 8 Additional Monthly M&A and Investment Activity Data 42 About Petsky Prunier 56
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This M&A and Investment Summary has been prepared by and is being distributed in the United States by Petsky Prunier, a broker dealer register with the U.S . SEC and a member of FINRA. Petsky Prunier is not affiliated with Altium Capital Ltd, but has partnered with Altium to expand its international presence. Altium has not prepared or verified the information in this Summary. Persons in the United States should contact Petsky Prunier for further information or services. This M&A and Investment Summary is not being distributed by Altium Capital Ltd in the United States and Altium Capital Ltd is not offering any services to persons in the United States.
M&A & INVESTMENT SUMMARY APRIL 2013 2 M&A AND INVESTMENT SUMMARY FOR ALL SEGMENTS Transaction Distribution • A tot al of 359 deal s were announced in April 2013, of whi ch 211 report ed $7.5 billion in val ue • Digital Media/Commerce was the most active segment with 76 transactions, of which 57 reported $1.2 billion in value • Information & Business Services was the highest reported value segment, with 40 transactions announced, of which 15 reported $2.7 billion in value • Strategic buyers announced 151 deals (42 percent of total volume), of which 27 reported $3 billion in value • VC/Growth Capital investors announced 199 deals, of which 179 reported $2.7 billion in value • Buyout investors announced nine deals during the month, of which five reported $1.8 billion in value
APRIL 2013 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Media/Commerce 76 21% 1,205.1 16% 21 144.2 0 - 55 1,060.9 Maaetgecoogyrketing Technology 68 19% 339. 9 5% 18 31.4 0 - 50 308. 5 Software 54 15% 939.4 13% 29 306.7 1 - 24 632.8 Information & Business Services 40 11% 2,748.0 37% 25 1,133.1 5 1,484.7 10 130.2 Technology 37 10% 445.8 6% 12 239.1 0 - 25 206.7 Digital Advertising 30 8% 467.1 6% 9 248.7 0 - 21 218.4 Traditional Media 28 8% 486.7 6% 21 398.1 2 46.7 5 42.0 Agency 11 3% - - 10 - 0 - 1 - Communications 11 3% 866.5 0% 4 510.0 1 253.0 6 103.5 Marketing Services 4 1% 4.5 0% 2 - 0 - 2 4.5 Total 359 100% 7,503.0 88% 151 3,011.2 9 1,784.4 199 2,707.4
M&A & INVESTMENT SUMMARY APRIL 2013 3 M&A AND INVESTMENT SUMMARY FOR ALL SEGMENTS Transaction Distribution • On a month -over-month basi s, aggregat e deal vol ume across all segment s increased seven percent • The largest control transactions announced during the month included: › Thomas H. Lee Partners’ $1.1 billion buyout of CompuCom Systems, a provider of IT consulting and outsourcing solutions that include unified communications and collaboration, network infrastructure and security, virtualization and cloud, storage management and data protection, and IT procurement services › Roper Industries’ $1.1 billion acquisition of Managed Health Care Associates, a provider of services and solutions to support the needs of alternate site healthcare providers • The largest investment during the month was Alibaba’s $586 million investment in China-based micro-blogging platform Sina Weibo, at a valuation of $3.3 billion. Additional large investments included: › Intel Capital’ s $180 million investment in Mashery, a cloud-based manager of Application Programming Interfaces, which enable developers to work with different cloud services and software
M&A and Investment Volume For All Segments - Last 13 Months ($BN) All transactions; Value based on reported values only
$25.0
$19.1 $20.0 $15.3 $15.9 $15.0 $12.8 $11.7 5 5 $9.5 $9.8 $9.9 2 3 $8.5 $8.7 $10.0 3 $7.1 $7.5 $6.1 * 2 3 2 1 1 2 $5.0 2 1
381 377 376 402 401 342 305 298 335 357 $- 390253 409 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13
Deals valued over $1BN
* Aggregate totals do not include Liberty Global’s $24.3 billion acquisition of Virgin Media or Comcast’s $16.7 billion acquisition of its remaining 49 percent stake in NBC Universal
M&A & INVESTMENT SUMMARY APRIL 2013 4 SELECTED TRANSACTIONS WITH VALUATION INFORMATION DISCLOSED
($ in Millions)
Selected Transactions With Multiples Information
Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Advertising Jetsetter Vertical Search TripAdvisor, Inc. $50.0 $70.0 - 0.7x NM Traditional Media Fisher Communications, Inc. Broadcast Television Sinclair Broadcast Group, Inc. 353.9 168.2 31.2 2.1x 11.3x RRsat Global Communications Network Ltd.(1 ) Cable & Satellite Television Viola Private Equity 112.6 113.4 18.5 1.0x 6.1x The Garden Productions Entertainment Media ITV plc 27.5 0.0 3.8 NA 7.2x Future PLC, Classic Rock and Metal Hammer Consumer Magazine Publishing TeamRock Ltd. 15.4 13.9 - 1.1x NM Technology Revera Data Center Technology Telecom New Zealand Ltd. 82.7 41.8 10.9 2.0x 7.6x
Communications Telular Corporation Networking Equipment Avista Capital Partners 253.0 90.9 19.0 2.8x 13.3x
Software Ingenuity Systems, Inc. Healthcare Software QIAGEN N.V. 105.0 20.0 - 5.3x NM Arkoon Network Sec urity Security Software Cassidian CyberSec urity 19.9 14.7 2.0 1.4x 9.9x
Information & Business Services Alti IT Consulting/Systems Integration Tata Consultancy Services 97.5 166.1 - 0.6x NM
IPOs After Final Pricing Target SbSubsegment B/IBuyer/Investor Ent. VlValue Rev EBITDA EV/REV EV/EBITDA Software Rally Software Development Corporation Software Development Tools IPO $297.3 $56.8 ($8.9) 5.2x NM
(1) RRsat Global Communications Network sold a 20 percent stake to Viola Private Equity and Vpartners for $27.8 million
Note: IPO multiples based on TTM financials and pro forma balance sheets per latest Registration Filing
M&A & INVESTMENT SUMMARY APRIL 2013 5 SECURITIES IN REGISTRATION ($ in Millions)
Aggregate LTM Date Company Name Segment Offering Value Rev EBITDA
Apr-13 ChannelAdvisor Corporation Marketing Technology $86.3 $50.4 ($0.8)
Apr-13 Cyan, Inc. Communications 96.0 95.9 (9.4)
Apr-13 Light In The Box Ltd. Digital Media/Commerce 86.3 200.0 (3.2)
Apr-13 Marketo, Inc. Marketing Technology 75.0 58.4 (33.0)
Apr-13 Tableau Software, Inc. Software 450.0 127.7 8.4
Apr-13 Textura Corporation Software 50.0 24.0 (14.2)
Mar-13 Blackhawk Network Holdings, Inc. Technology 220.0 959.1 92.3
Feb-13 Oisix Co., Ltd Digital Media/Commerce 9.0 NA NA
Feb- 13 Quintiles Transnational Holdings Inc. Information & Business Services 789. 5 369233,692.3 486. 2
Feb-13 Softmax Co., Ltd Software 7.0 NA NA
Jan-13 Channel Nine Entertainment Limited Traditional Media 2.2 NA NA
Oct-12 Violin Memory, Inc. Technology NA 100.0 NA
Aug-12 Just Dial Limited Digital Advertising NA 48.8 13.0
Jun-12 goldenTech SA Software 5.2 NA NA
Jun-12 Shanghai Amarsoft Information Technology Software NA NA NA
Apr-12 BlackStratus, Inc. Softw are 20.0 9.2 (0.6)
Apr-12 NSFOCUS Information Technology Co., Ltd. Communications NA NA NA
Apr-12 Shenzhen Tinno Mobile Technology Corp. Communications 451.0 NA NA
Mar-12 Exponential Interactive, Inc. Digital Advertising 75.0 169.1 22.0
Mar-12 Reval Holdings, Inc. Software 75.0 47.0 (12.1)
M&A & INVESTMENT SUMMARY APRIL 2013 6 LTM IPO PERFORMANCE
IitilInitial OffiOffering Fina l Pr ice Stoc k Pr ice a t Close Stoc k Pr ice on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Apr 30, 2013 1st Trading Day Apr-13 RALY Rally Software Development Corp. United States $11.00-$13.00 $14.00 17.81, up 27% $18.13 1.8% Mar-13 MRIN Marin Software United States 11.00-13.00 14.00 16.26, up 16% 14.70 (9.6%) Mar-13 MODN Model N, Inc. United States 12.50-14.50 15.50 18.45, up 19% 19.78 7.2% Mar-13 IPDN Professional Diversity Network LLC United States 10.00-12.00 8.00 7.67, down 4% 4.50 (41.3%) Feb-13 DGS Digital Globe Services, Ltd. United States No Range 2.47 2.59, up 5% 2.64 1.8% Feb-13 XOOM Xoom Corporation United States 13.00-15.00 16.00 25.49, up 59% 18.46 (27.6%) Nov-12 3666 Tecnos Japan Incorporated Japan 16.77-18.72 18.72 27.66, up 48% 31.49 13.8% Nov-12 YY YY, Inc. China 10.50-12.50 10.50 11.31, up 8% 17.44 54.2% Oct-12 RKUS Ruckus Wireless, Inc. United States 13.00-15.00 15.00 12.25, down 18% 19.30 57.6%
Oct-12 FLTX Fleetmatics Group Limited United States 15.00-17.00 27.00 22.30, up 31% 23.47 5.2% Oct-12 RLGY Realogy Holdings Corp. United States 23.00-27.00 27.00 34.20, up 27% 48.00 40.4% Oct-12 SSTK Shutterstock, Inc. United States 13.00-15.00 17.00 21.66, up 27% 41.70 92.5% Oct-12 WDAY Workday, Inc. United States 24.00-26.00 28.00 48.69, 74% 62.65 28.0% Sep-12 TRLA Trulia, Inc. United States 14.00-16.00 17.00 24.00, up 41.8% 29.06 21.1% Aug-12 PFMT Performant Financial Corporation United States 12.00-14.00 9.00 10.60, down 18% 9.73 (8.2%) Jul- 12 EOPN E2open, Inc. United States 15.00- 17.00 15.00 13.50, down 10% 14.21 5.3% Jul-12 KYAK Kayak Software United States 22.00-25.00 26.00 33.18, up 28% 39.82 20.0% Jul-12 PANW Palo Alto Networks United States 38.00-40.00 42.00 53.13, up 27% 54.10 1.8% Jun-12 DB:VWA Vange Software Group AG Switzerland 33.05-39.41 33.05 32.69, down 1% 8.63 (73.6%) May-12 ADNC Audience, Inc. United States 14.00-16.00 17.00 19.10, up 12.4% 14.79 (22.6%)
May-12 FB Facebook United States 36.00-38.00 38.00 38.23, flat 27.77 (27.4%) M12May-12 WAGE WWkWageWorks, Inc. UitdUnited SttStates 10. 00- 12. 00 9009.00 12. 60, up 40% 25. 61 103. 3%
M&A & INVESTMENT SUMMARY APRIL 2013 7 DIGITAL MEDIA/COMMERCE Transactions by Subsegment and Buyer Type
• eCommerce was the most active and highest reported value subsegment with 26 transactions announced, of which 21 announced $366 million in value • Select acquisitions › Amazon’s $26 million acquisition of U.K.-based Evi Technologies, which has developed a mobile natural language search and virtual assistant app › Twitter’s acquisition of We Are Hunted, a song recommendation and music streaming application with more than 200 million active users • Select investments › The $83 million investment in Acumen Brands, which operates more than 20 online stores to sell medical uniforms and other specialized goods, from General Atlantic and another undisclosed investor › Alibaba’s $586 million investment in Sina Weibo, a China-based operator of a micro-blogging platform, at a valuation of $3.3 billion
DIGITAL MEDIA/COMMERCE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM eCommerce 26 34% 366.1 30% 6 100.0 0 - 20 266.1 Mobile Content/Apps 16 21% 99.1 8% 5 28.6 0 - 11 70.5 Social Media/Apps 15 20% 633.3 53% 4 - 0 - 11 633.3 Gaming 7 9% 56.1 5% 2 15.6 0 - 5 40.5 Classifieds/Auctions/P-to-P 6 8% 35.5 3% 2 - 0 - 4 35.5 Niche Content 6 8% 15.0 1% 2 - 0 - 4 15.0 Total 76 100% 1,205.1 100% 21 144.2 0 0.0 55 1,060.9
M&A & INVESTMENT SUMMARY APRIL 2013 8 DIGITAL MEDIA/COMMERCE PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Web Search/Portals Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AOL Inc. United States 38.64 -12% 2,983.5 2,635.9 466.6 105.9 2,191.7 471.5 21.5% -0.5% 1.2x 5.6x Baidu, Inc . China 85.85 -36% 30,022.6 26,692.2 5,211.5 1,915.7 3,863.1 2,066.3 53.5% 47.1% 6.9x 12.9x Google Inc . United States 824.57 -2% 273,564.3 230,842.3 48,088.0 7,210.0 53,499.0 16,813.0 31.4% 33.8% 4.3x 13.7x Yahoo! Inc. United States 24.73 -3% 27,235.0 24,389.4 3,013.2 121.5 4,905.7 1,327.1 27.1% -1.7% 5.0x 18.4x Yandex N.V. Netherlands 25.74 -39% 8,458.5 8,110.1 397.2 - 995.0 435.4 43.8% 40.3% 8.2x 18.6x
Adjusted Weighted Average 4.7x 14.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (19.2x)
eCommerce Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 1-800-Flowers.com Inc. United States 5.93 -4% 383.9 384.9 27.0 21.8 746.1 44.8 6.0% 1.2% 0.5x 8.6x Amazon.com Inc. United States 253.81 -11% 115,545.2 110,690.2 11,448.0 4,385.0 63,978.0 2,710.0 4.2% 24.5% 1.7x 40.8x Blue Nile Inc . United States 32.63 -25% 407.0 320.6 87.0 0.7 414.0 14.5 3.5% 18.0% 0.8x 22.2x Bluefly Inc . United States 0.54 -70% 15.4 22.1 1.3 7.9 93.4 (()21.5) NM - 2.9% 0.2x NM CafePress Inc. United States 5.77 -69% 98.8 61.9 40.6 3.7 217.8 13.4 6.2% 24.1% 0.3x 4.6x eBay Inc. United States 52.39 -10% 67,991.2 63,105.2 9,408.0 4,519.0 14,543.0 4,310.0 29.6% 17.4% 4.3x 14.6x E-Commerce China Dangdang Inc. China 3.84 -53% 316.0 263.8 148.4 96.3 833.2 (71.9) NM 43.5% 0.3x NM Expedia Inc. United States 55.84 -18% 7,546.3 7,172.7 1,938.1 1,249.3 4,226.2 638.8 15.1% 19.5% 1.7x 11.2x Hollywood Media Corp. * United States 1.38 -8% 31.3 19.9 11.4 0.0 0.6 (5.6) NM -42.3% 32.3x NM HSN, Inc . United States 52.58 -14% 2,849.6 2,878.4 222.1 250.8 3,301.5 286.3 8.7% 2.7% 0.9x 10.1x Jiayuan.com International Ltd. China 5.01 -69% 150.4 69.3 81.1 - 65.9 10.5 15.9% 24.0% 1.1x 6.6x Liquidity Servic es, Inc . United States 32.90 -51% 1,038.1 992.2 45.9 - 496.1 95.6 19.3% 25.8% 2.0x 10.4x Merc adolibre, Inc . Argentina 100.59 0% 4,441.4 4,250.3 195.2 0.1 373.6 138.6 37.1% 25.0% 11.4x 30.7x Netflix, Inc . * United States 216.07 -4% 12,628.4 12,302.5 748.1 431.8 3,763.5 129.9 3.5% 12.1% 3.3x 94.7x OpenTable, Inc. United States 55.39 -15% 1,266.8 1,163.3 103.5 - 167.8 47.8 28.5% 15.6% 6.9x 24.3x Orbitz Worldwide, Inc. United States 5.98 -19% 630.1 940.2 130.3 440.3 778.8 106.0 13.6% 1.6% 1.2x 8.9x Overstock.com Inc. United States 20.80 -12% 491.9 410.0 93.5 - 1,148.9 32.4 2.8% 9.3% 0.4x 12.7x PC Home Online Inc. Taiwan 4.51 -29% 369.0 279.3 104.5 - 514.6 19.2 3.7% 9.5% 0.5x 14.5x pric eline.c om Inc orporated United States 695.99 -8% 34,841.3 31,275.3 5,183.2 1,457.0 5,261.0 1,914.9 36.4% 20.8% 5.9x 16.3x Rakut en, Inc . Japan 10.66 -4% 14,016.1 11,840.4 6,060.5 3,538.2 5,127.2 1,172.0 22.9% 16.7% 2.3x 10.1x Shutterfly, Inc. United States 44.53 -9% 1,617.8 1,372.7 245.1 - 666.0 83.3 12.5% 31.3% 2.1x 16.5x Shutterstock, Inc. United States 41.70 -11% 1,397.9 1,301.8 102.1 6.0 169.6 32.1 18.9% 41.0% 7.7x 40.6x Stamps.com Inc. United States 33.84 -2% 517.7 460.5 35.9 - 119.5 29.3 24.5% 11.6% 3.9x 15.7x ValueVision Media Inc . * United States 4.30 -4% 211.3 222.8 26.5 38.0 586.8 1.2 0.2% 5.1% 0.4x 180.0x Vips hop Ho ldings Lim ite d China 30. 79 -9% 1, 698. 1 1, 488. 3 210. 6 0. 8 692. 1 (7. 4) NM 204.7% 2.2x NM
Adjusted Weighted Average 3.2x 26.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (16.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (68.2x)
M&A & INVESTMENT SUMMARY APRIL 2013 9 DIGITAL MEDIA/COMMERCE PUBLIC COMPANY VALUATION
Lifestyle and Entertainment Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Bet fair Group PLC United Kingdom 13.46 0% 1,362.8 1,179.7 189.9 - 642.9 102.7 16.0% 7.5% 1.8x 11.5x CyberAgent Inc. Japan 1,956.00 -21% 1,218.3 890.7 934.6 1.8 1,647.6 169.4 10.3% 0.0% 0.5x 5.3x Demand Media, Inc . United States 8.66 -31% 746.0 644.5 102.9 1.5 380.6 68.6 18.0% 17.1% 1.7x 9.4x DeNA Co., Lt d. Japan 28.50 -18% 3,824.0 3,357.8 573.3 - 2,225.0 959.5 43.1% 42.1% 1.5x 3.5x Facebook, Inc. * United States 27.77 -38% 67,084.3 59,814.3 9,626.0 2,356.0 5,489.0 1,310.0 23.9% 35.9% 10.9x 45.7x G5 Entertainment AB (publ) Sweden 7.75 -13% 68.2 66.1 2.1 - 12.4 5.5 44.4% 73.6% 5.3x 12.0x GameLoft SA France 6.72 -11% 534.1 460.8 55.8 0.5 274.7 43.3 15.8% 20.9% 1.7x 10.6x Glu Mobile, Inc . United States 3.08 -48% 210.9 188.6 22.3 - 85.1 (8.8) NM 19.3% 2.2x NM Gree, Inc. Japan 12.81 -28% 2,990.4 2,802.3 496.4 282.5 1,891.6 891.4 47.1% 49.5% 1.5x 3.1x IAC/InterAc tiveCorp United States 47.07 -15% 3,939.8 3,949.4 770.6 595.8 2,902.6 449.5 15.5% 29.6% 1.4x 8.8x International Game Tec hnology United States 16.95 -3% 4,481.6 6,074.4 200.7 1,775.5 2,294.1 840.8 36.7% 13.8% 2.6x 7.2x Kongzhong Corp. China 6.00 -27% 251.7 113.6 138.2 - 180.6 30.9 17.1% 15.6% 0.6x 3.7x LinkedIn Corporation * United States 192.09 -5% 21,197.0 20,447.4 749.5 - 1,108.6 149.5 13.5% 79.8% 18.4x 136.8x MeetMe, Inc. United States 1.93 -56% 73.6 80.3 5.0 11.7 46.7 (0.9) NM 335.8% 1.7x NM Mixi, Inc. Japan 16.94 -29% 262.8 134.0 145.2 - 158.7 48.9 30.8% -1.7% 0.8x 2.7x NCsoft Corporation South Korea 150.84 -42% 2,998.1 2,517.5 527.5 11.4 708.5 177.4 25.0% 23.8% 3.6x 14.2x Nexon Co. Lt d. Japan 12.12 -29% 5,287.9 4,553.5 1,476.5 607.3 1,253.8 703.6 56.1% 23.8% 3.6x 6.5x Pacific Online Ltd. China 0.40 -12% 433.4 362.9 70.6 - 114.8 49.0 42.7% 11.8% 3.2x 7.4x Pandora Media, Inc. United States 13.93 -46% 2,429.3 2,340.3 89.0 - 427.1 (30.8) NM 55.7% 5.5x NM Perform Group plc. United Kingdom 8.06 -4% 1,925.5 1,886.5 54.6 11.5 246.4 53.6 21.7% 46.9% 7.7x 35.2x Phoenix New Media Limited China 3.65 -41% 281.2 96.5 184.7 - 178.2 17.0 9.5% 16.9% 0.5x 5.7x Rediff.c om India Limit ed India 2.75 -54% 75.9 51.3 - - 16.1 (7.6) NM -23.0% 3.2x NM Renren Inc . China 2.80 -59% 1,060.6 156.4 905.5 - 176.1 (75.6) NM 49.3% 0.9x NM S ky - mo bi Limit e d * China 1.73 -49% 54.5 (42.1) 97.0 - 99.3 1.5 1.5% -9.5% NM NM Spark Networks, Inc . United States 6.82 -18% 143.4 135.5 10.5 - 64.5 (7.6) NM 23.7% 2.1x NM Taomee Holdings Ltd. China 4.62 -17% 169.2 50.7 118.6 - 40.2 5.0 12.5% -11.4% 1.3x 10.1x The Active Network, Inc. United States 5.03 -69% 306.6 253.3 58.5 5.2 430.5 12.5 2.9% 19.9% 0.6x 20.2x TheStreet, Inc. United States 1.86 -5% 61.9 20.0 41.9 - 50.7 (2.3) NM -12.2% 0.4x NM United Online, Inc . United States 6.80 0% 626.0 737.8 136.4 244.0 876.0 93.9 10.7% -2.5% 0.8x 7.9x WebMD Health Corp. United States 24.15 -3% 1,183.7 991.8 991.8 800.0 469.9 23.2 4.9% -15.9% 2.1x 42.7x WebMediaBrands Inc United States 1.73 -74% 10.4 15.9 2.2 7.6 12.8 (2.1) NM - 7.7% 1.2x NM YY Inc. China 17.44 -17% 948.1 723.1 225.0 - 131.6 21.7 16.5% 156.5% 5.5x 33.3x Zynga, Inc. United States 3.19 -64% 2,532.0 1,363.3 1,284.8 100.0 1,223.9 140.3 11.5% 0.5% 1.1x 9.7x
Adjusted Weighted Average 2.6x 33.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.3x)and EBITDA multiples that are 1.0 standard deviations above the mean (46.9x)
M&A & INVESTMENT SUMMARY APRIL 2013 10 DIGITAL ADVERTISING Transactions by Subsegment and Buyer Type
• Local Search and Vertical Search were the most active Digital Advertising subsegments, with a combined total of 18 transactions announced, of which 14 reported $423 million in value • Select acquisitions › Amazon’s $150 million acquisition of Goodreads, which offers an online social reading service › TripAdvisor’s acquisition of Jetsetter, which operates a private online community to help travelers discover and purchase vacations, from Gilt Group, in a deal reportedly valued at more than $30 million › NCrowd’s acquisition of daily deals platforms Tippr.com and Groupalicious.com, bringing its active US subscriber base to over 3.2 million › USA TODAY Travel Media Group’s acquisition of Tripology, a company offering an interactive travel referral service focused on connecting travelers with experienced travel specialists • Select investments › The $60 million investment in Eventbrite, a provider of event creation, promotion, and ticket sales service, from T. Rowe Price Group and Tiger Global Management, valuing the company at more than $600 million › The $57 million investment in Qunar.com, a travel search engine operator, led by Baidu
DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Local Search 9 30% 108.9 23% 2 - 0 - 7 108.9 Vertical Search 9 30% 314.4 67% 4 248.7 0 - 5 65.7 Digital Promotion/Coupon 4 13% 20. 1 4% 1 - 0 - 3 20. 1 Mobile Marketing 2 7% 15.3 3% 0 - 0 - 2 15.3 Online Lead Generation 2 7% 1.0 0% 1 - 0 - 1 1.0 Ad Networks/Exchanges 1 3% 5.9 1% 0 - 0 - 1 5.9 Comparison Shopping 1 3% 1.6 0% 0 - 0 - 1 1.6 Digital Video 1 3% - 0% 0 - 0 - 1 - Search Marketing 1 3% - 0% 1 - 0 - 0 - Total 30 100% 467.1 100% 9 248.7 0 0.0 21 218.4
M&A & INVESTMENT SUMMARY APRIL 2013 11 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Channel Networks & Platforms Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Blinkx plc United States 1.45 -3% 527.3 487.1 41.6 - 151.8 16.5 10.9% 82.2% 3.2x 29.5x Bluc ora, Inc . United States 14.77 -21% 605.6 517.6 162.3 74.3 456.6 87.2 19.1% 55.9% 1.1x 5.9x Constant Contact, Inc. United States 14.61 -38% 448.5 351.2 93.5 - 260.4 18.2 7.0% 16.1% 1.3x 19.3x Demand Media, Inc . United States 8.66 -31% 746.0 644.5 102.9 1.5 380.6 68.6 18.0% 17.1% 1.7x 9.4x Digital Globe Servic es Inc . United States 2.64 -8% 78.2 80.1 0.9 2.9 22.8 3.6 15.8% 0.0% 3.5x 22.2x ExactTarget, Inc. United States 19.58 -25% 1,344.6 1,236.4 109.4 1.2 292.3 4.1 1.4% 40.9% 4.2x NM Google Inc . United States 824.57 -2% 273,564.3 230,842.3 48,088.0 7,210.0 53,499.0 16,813.0 31.4% 33.8% 4.3x 13.7x Hi- Me dia S. A. Franc e 2332.33 -22% 103. 3 138. 5 19. 1 52. 7 256. 8 17. 2 67%6.7% -15. 3% 050.5x 808.0x Millennial Media Inc. United States 6.93 -64% 549.3 411.9 137.4 - 177.7 (1.8) NM 71.4% 2.3x NM Voltari Corporation United States 5.95 -38% 27.8 25.3 51.5 22.5 90.0 13.7 15.2% -7.9% 0.3x 1.8x Opera Software ASA Norway 6.79 -14% 822.2 767.0 57.2 - 216.0 60.0 27.8% 35.2% 3.6x 12.8x OPT, Inc. Japan 11.48 -3% 337.9 231.5 171.1 9.9 873.0 26.6 3.0% 26.2% 0.3x 8.7x Pacific Online Ltd. China 0.40 -12% 433.4 362.9 70.6 - 114.8 49.0 42.7% 11.8% 3.2x 7.4x ReachLocal, Inc. * United States 16.67 -3% 471.2 375.7 95.5 - 455.4 7.6 1.7% 21.3% 0.8x 49.4x Responsys, Inc. United States 7.77 -40% 381.7 276.2 106.7 1.1 162.8 19.3 11.8% 20.7% 1.7x 14.3x Rovi Corporat ion United States 23.39 -14% 2,356.1 2,976.8 863.3 1,484.0 633.6 215.6 34.0% -11.1% 4.7x 13.8x Septeni Holdings Co., Ltd. Japan 1,416.48 -12% 178.5 146.0 55.7 10.8 459.7 18.5 4.0% 15.9% 0.3x 7.9x The Active Network, Inc. United States 5035.03 -69% 306. 6 253. 3 58. 5 5. 2 430. 5 12. 5 29%2.9% 19. 9% 06x0.6x 20. 2x TiVo Inc. United States 11.72 -13% 1,477.0 1,022.3 627.2 172.5 303.9 (31.4) NM 27.6% 3.4x NM TradeDoubler AB Sweden 2.25 -29% 96.0 70.7 25.3 - 354.4 2.5 0.7% -11.7% 0.2x 28.3x ValueClic k, Inc . United States 30.86 -2% 2,347.8 2,353.7 136.6 142.5 660.9 200.5 30.3% 25.0% 3.6x 11.7x Velti Plc Ireland 2.00 -83% 132.2 124.0 36.6 28.2 270.3 8.7 3.2% 42.9% 0.5x 14.2x Vocus Inc. * United States 8.41 -59% 177.5 214.9 32.8 1.6 182.2 4.0 2.2% 48.4% 1.2x 53.1x Web.com Group, Inc. United States 17.40 -12% 829.2 1,506.9 15.2 692.8 431.7 69.4 16.1% 71.8% 3.5x 21.7x Yahoo! Inc. United States 24.73 -3% 27,235.0 24,389.4 3,013.2 121.5 4,905.7 1,327.1 27.1% -1.7% 5.0x 18.4x Youku Tudou Inc. * China 20.26 -21% 3,316.1 2,711.2 604.2 1.2 288.1 5.5 1.9% 100.0% 9.4x NM
Adjusted Weighted Average 4.3x 14.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (30.7x)
M&A & INVESTMENT SUMMARY APRIL 2013 12 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION
($ in millions, except stock price data) preCommerce Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Angie's List, Inc. United States 24.24 -9% 1,408.4 1,360.4 53.1 14.9 176.9 (43.0) NM 70.9% 7.7x NM Autobytel Inc. United States 4.39 -6% 38.9 28.6 15.3 5.0 68.4 3.2 4.7% 6.0% 0.4x 8.9x Bankrat e, Inc . United States 13.48 -35% 1,348.6 1,453.4 83.6 193.9 440.6 103.8 23.6% -2.1% 3.3x 14.0x Ctrip.c om International Ltd. China 21.98 -12% 2,852.3 2,345.4 774.9 252.7 667.2 120.5 18.1% 18.9% 3.5x 19.5x Dic e Holdings, Inc . United States 8.44 -21% 505.3 493.7 42.2 46.0 199.7 69.1 34.6% 7.8% 2.5x 7.1x eHealth, Inc. United States 20.94 -26% 407.5 293.9 140.8 - 161.6 21.2 13.1% 6.9% 1.8x 13.9x Groupon, Inc . United States 6.10 -59% 4,033.5 2,823.4 1,209.3 1.1 2,334.5 152.0 6.5% 45.0% 1.2x 18.6x HAHomeAway, Inc. UitdUnited SttStates 30. 55 -11% 2, 594. 8 2, 280. 4 269. 8 - 295. 8 56. 4 19. 1% 22. 0% 777.7x 40. 5x Kayak Soft ware Corporat ion United States 39.82 -7% 1,551.9 1,362.1 189.8 - 292.7 51.4 17.6% 30.4% 4.7x 26.5x LeGuide.com S.A. France 35.90 -3% 126.2 93.4 32.8 - 57.7 15.5 26.8% 53.6% 1.6x 6.0x MakeMyTrip Limited India 12.84 -36% 477.1 404.2 74.4 0.8 220.6 (6.5) NM 21.9% 1.8x NM Monster Worldwide, Inc. United States 4.38 -55% 486.7 502.8 148.2 164.2 868.6 135.5 15.6% -15.2% 0.6x 3.7x Move, Inc. United States 11.41 -6% 454.9 427.7 27.1 - 205.7 15.3 7.4% 8.1% 2.1x 28.0x QuinStreet, Inc. United States 6.54 -36% 279.9 263.5 107.8 99.7 315.1 38.0 12.1% -16.8% 0.8x 6.9x Rightmove plc * United Kingdom 29.89 -1% 2,969.2 2,958.2 11.5 - 194.0 136.3 70.3% 23.0% 15.2x 21.7x Tree.Com, Inc. United States 20.47 -1% 238.6 158.4 80.2 - 77.4 (4.6) NM 41.8% 2.0x NM TripAdvisor Inc. United States 52.58 -4% 7,514.0 7,439.7 486.5 412.1 763.0 309.6 40.6% 19.8% 9.8x 24.0x Trulia, Inc. United States 29. 06 -24% 933. 1 728. 7 100. 0 10. 0 79. 9 (4. 3) NM 87. 8% 91x9.1x NM Yelp, Inc. United States 26.03 -20% 1,674.0 1,578.9 95.1 - 137.6 (11.4) NM 65.2% 11.5x NM Zillow, Inc . * United States 58.83 -7% 2,028.3 1,834.2 194.1 - 116.9 12.4 10.6% 76.9% 15.7x 148.3x
Adjusted Weighted Average 6.1x 22.5x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (14.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (61.2x)
M&A & INVESTMENT SUMMARY APRIL 2013 13 MARKETING TECHNOLOGY Transactions by Subsegment and Buyer Type
• There were 68 deals announced in the Marketing Technology segment, flat from the previous month. Of those, 43 reported $340 million in value • Select acquisitions › Paypal’s acquisition of Iron Pearl, a startup focused on tools for customer acquisition and engagement that are based on social and cultural factors that drive the viral spread of products, in addition to data analysis and predic tive mode ling › Google’s $30 million acquisition of Wavii, a developer of natural language processing tools, along with its acquisition of Behavio, which has developed a mobile framework that gathers data about people and their location by way of their mobile phone • Select investments › The $28 million investment in Optimizely, a startup that helps companies A/B test different versions of their websites, from Bain Capital Centures, Batter Ventures, InterWest Partners, and Google Ventures
MARKETING TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Analytics & Reporting 14 21% 125.0 37% 3 - 0 - 11 125.0 Mobile Technology 11 16% 13.8 4% 5 - 0 - 6 13.8 Content Management 7 10% 26.1 8% 1 - 0 - 6 26.1 CRM 6 9% 30.5 9% 1 - 0 - 5 30.5 BI Tools 5 7% 12.8 4% 2 - 0 - 3 12.8 Social Technology 4 6% 14.8 4% 1 - 0 - 3 14.8 Email/Messaging Software 3 4% 26.9 8% 0 - 0 - 3 26.9 SFA/Lead Management 3 4% 4.5 1% 0 - 0 - 3 4.5 Website Creation/Hosting 3 4% 6.0 2% 1 - 0 - 2 6.0 MRM/Workflow Management 2 3% 27.5 8% 1 - 0 - 1 27.5 Other* 8 12% 22.0 6% 2 1.4 0 - 6 20.6 Total 68 100% 339. 9 100% 18 31. 4 0 000.0 50 308. 5 *Other includes Ad Serving, Commerce Management, Creative Production Platform, Market Research Software, Media Management System, Product/Price Software, Search & Discovery, and Web to Print
M&A & INVESTMENT SUMMARY APRIL 2013 14 MARKETING TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Marketing Applications Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adobe Systems Inc. United States 45.08 -2% 22,627.3 20,498.0 3,660.7 1,531.4 4,366.3 1,296.0 29.7% 3.1% 4.7x 15.8x Bazaarvoice, Inc. United States 7.25 -64% 527.7 422.2 105.5 - 148.4 (27.0) NM 57.9% 2.8x NM Blackbaud Inc. United States 29.31 -5% 1,302.7 1,506.0 13.5 216.8 468.3 73.0 15.6% 23.6% 3.2x 20.6x Constant Contact, Inc. United States 14.61 -38% 448.5 351.2 93.5 - 260.4 18.2 7.0% 16.1% 1.3x 19.3x Dealertrack Technologies, Inc. United States 27.85 -17% 1,199.1 1,183.7 177.8 162.5 388.9 53.5 13.8% 10.1% 3.0x 22.1x Demandware, Inc . * United States 27.30 -20% 821.9 720.1 107.1 5.4 79.5 (3.8) NM 40.5% 9.1x NM Digital Generation, Inc. United States 6.70 -49% 185.4 554.5 84.8 453.9 386.6 100.6 26.0% 19.2% 1.4x 5.5x Dig ita l River Inc. UitdUnited SttStates 14. 48 -19% 511. 3 115. 6 705. 6 309. 9 397. 5 31. 3 79%7.9% -12%1.2% 030.3x 373.7x eBay Inc. United States 52.39 -10% 67,991.2 63,105.2 9,408.0 4,519.0 14,543.0 4,310.0 29.6% 17.4% 4.3x 14.6x ExactTarget, Inc. United States 19.58 -25% 1,344.6 1,236.4 109.4 1.2 292.3 4.1 1.4% 40.9% 4.2x NM Jive Software, Inc. United States 13.59 -42% 909.4 775.8 145.4 10.8 122.2 (43.4) NM 41.2% 6.3x NM LivePerson Inc. United States 12.82 -35% 706.1 602.7 103.3 - 157.4 19.0 12.1% 18.3% 3.8x 31.8x Marin Software Incorporated United States 14.70 -26% 454.4 433.7 31.5 10.8 59.6 (22.6) NM 64.9% 7.3x NM Market Leader, Inc. United States 10.02 -1% 270.5 248.3 22.2 - 45.0 (3.7) NM 32.2% 5.5x NM Responsys, Inc. United States 7.77 -40% 381.7 276.2 106.7 1.1 162.8 19.3 11.8% 20.7% 1.7x 14.3x Oracle Corporation United States 32.78 -10% 154,415.4 141,202.4 33,407.0 19,752.0 37,149.0 17,286.0 46.5% 0.5% 3.8x 8.2x salesforce.com, inc * United States 41.11 -13% 24,222.5 24,002.8 867.6 647.9 3,050.2 84.0 2.8% 34.6% 7.9x 285.8x Teradata Corporation United States 51. 07 -37% 8, 429. 6 7, 974. 6 729. 0 274. 0 2, 639. 0 615. 0 23. 3% 69%6.9% 30x3.0x 13. 0x The Active Network, Inc. United States 5.03 -69% 306.6 253.3 58.5 5.2 430.5 12.5 2.9% 19.9% 0.6x 20.2x Vocus Inc. United States 8.41 -59% 177.5 214.9 32.8 1.6 182.2 4.0 2.2% 48.4% 1.2x 53.1x
Adjusted Weighted Average 4.3x 10.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (127.6x)
M&A & INVESTMENT SUMMARY APRIL 2013 15 MARKETING TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Marketing-related Infrastructure Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Actuate Corporation United States 6.14 -15% 293.1 225.8 66.5 0.8 138.9 20.7 14.9% 0.9% 1.6x 10.9x Bit aut o Holdings Limit ed China 11.37 -2% 451.8 352.8 96.3 - 169.6 29.7 17.5% 57.8% 2.1x 11.9x Brightcove, Inc. United States 6.02 -71% 169.1 142.2 30.0 - 92.8 (9.2) NM 31.7% 1.5x NM E2open, Inc. * United States 14.21 -35% 356.2 322.0 33.5 1.1 74.9 1.6 2.1% 25.6% 4.3x 200.3x Informatica Corporation United States 32.93 -31% 3,556.7 2,965.7 535.6 - 829.9 169.5 20.4% 2.2% 3.6x 17.5x Infosystems S.A. Poland 1.19 -34% 4.9 4.5 0.6 0.3 2.1 0.8 38.8% 40.7% 2.2x 5.7x Interac tive Intelligenc e Group Inc . United States 41.43 -11% 823.9 755.0 68.9 - 237.4 11.1 4.7% 13.3% 3.2x 68.1x IBM Corpora tion UitdUnited SttStates 202. 54 -6% 224, 575. 1 246, 102. 1 11, 176. 0 33, 269. 0 103, 242. 0 26, 612. 0 25. 8% -35%3.5% 242.4x 929.2x Keynote Systems, Inc. United States 11.21 -31% 204.8 146.9 51.2 - 123.9 15.4 12.4% 5.2% 1.2x 9.5x Merc adolibre, Inc . Argentina 100.59 0% 4,441.4 4,250.3 195.2 0.1 373.6 138.6 37.1% 25.0% 11.4x 30.7x MicroStrategy Inc. United States 90.19 -42% 1,019.2 689.0 224.4 2.1 586.5 40.1 6.8% 0.2% 1.2x 17.2x NetSuite Inc. * United States 87.96 -1% 6,443.3 6,252.7 185.9 3.0 331.1 (21.0) NM 31.3% 18.9x NM Nuance Communications, Inc. United States 19.04 -26% 6,021.9 7,358.2 961.1 2,335.0 1,813.8 371.8 20.5% 25.4% 4.1x 19.8x OpenText Corporation Canada 65.39 -2% 3,832.3 3,958.9 367.3 581.4 1,321.7 390.7 29.6% 11.3% 3.0x 10.1x Opera Software ASA Norway 6.79 -14% 822.2 767.0 57.2 - 216.0 60.0 27.8% 35.2% 3.6x 12.8x PTC Inc. United States 24.01 -8% 2,868.7 2,936.1 248.4 368.1 1,270.0 239.2 18.8% 1.5% 2.3x 12.3x Qlik Technologies, Inc. * United States 26.01 -8% 2,260.8 2,046.1 195.8 - 405.9 11.5 2.8% 20.5% 5.0x 177.5x RealNet works Inc . United States 7707.70 -17% 272. 2 0. 8 271. 4 - 248. 7 (19. 2) NM -21. 1% 00x0.0x NM Sage Group plc United Kingdom 5.25 -5% 6,115.4 6,341.9 99.3 337.3 2,160.7 639.4 29.6% 0.5% 2.9x 9.9x SAP AG Germany 79.54 -7% 94,853.8 95,439.9 3,285.6 6,559.4 21,108.3 7,142.0 33.8% 13.2% 4.5x 13.4x S ky - mo bi Limit e d * China 1.73 -49% 54.5 (42.1) 97.0 - 99.3 1.5 1.5% -9.5% NM NM Synchronoss Technologies, Inc. United States 28.34 -11% 1,071.5 1,024.8 56.2 9.5 287.4 62.7 21.8% 19.4% 3.6x 16.3x TIBCO Software Inc. United States 19.41 -41% 3,185.0 2,942.7 806.7 563.4 1,036.7 210.1 20.3% 7.9% 2.8x 14.0x Verint Systems Inc. United States 33.04 -11% 1,733.7 2,377.2 223.6 576.7 839.5 162.2 19.3% 7.3% 2.8x 14.7x
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 (11.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (88.8x)
M&A & INVESTMENT SUMMARY APRIL 2013 16 AGENCY Transactions by Subsegment and Buyer Type
• There were 11 transactions announced in the Agency segment, five of which were in the Digital Agency subsegment • Select acquisitions › Aegis Media’s acquisition of Beijing Wonder Advertising, a China-based digital media planning and buying agency › LIN TV’ s purchase of a majority stake in Dedicated Media, a multi-channel ad buying firm that offers media buying, search, and affiliate marketing services › Omnicom’s acquisition of China-based Consultech, a China-based healthcare market consulting and marketing communications company
AGENCY TRANSACTIONS BY SEGMENT BUYER /INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Agency 5 45% - 0% 5 - 0 - 0 - Media Planning/Buying 2 18% - 0% 2 - 0 - 0 - Experiential Marketing 1 9% - 0% 0 - 0 - 1 - General Agency 1 9% - 0% 1 - 0 - 0 - Healthcare Agency 1 9% - 0% 1 - 0 - 0 - Promotion Agency 1 9% - 0% 1 - 0 - 0 - Total 11 100% 0.0 0% 10 0.0 0 0.0 1 0.0
M&A & INVESTMENT SUMMARY APRIL 2013 17 AGENCY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acquity Group Limited Hong Kong $6.50 -41% $152.9 $116.4 $141.0 $27.0 19.1% 32.2% 0.8x 4.3x Cello Group Plc United Kingdom 0.75 -10% 61.8 75.5 219.7 12.8 5.8% 5.8% 0.3x 5.9x Charm Communications Inc. China 4.49 -55% 179.7 72.8 165.5 (1.8) NM -40.9% 0.4x NM Chime Communications plc * United Kingdom 3.99 -6% 334.8 330.4 559.5 19.3 3.5% 20.5% 0.6x 17.1x Creston plc United Kingdom 1.34 -11% 80.9 84.1 121.9 22.0 18.1% 4.6% 0.7x 3.8x Dent su Inc . Japan 34.72 -1% 8,650.5 8,586.2 22,520.5 774.4 3.4% 5.7% 0.4x 11.1x Enero Group Limited Australia 0.37 -61% 31.9 15.4 307.1 3.8 1.2% -17.8% 0.1x 4.1x Havas France 6.11 -11% 2,335.1 2,688.1 2,344.3 344.1 14.7% 8.1% 1.1x 7.8x Huntsworth plc United Kingdom 0.93 -6% 229.3 333.5 281.2 46.8 16.6% -1.8% 1.2x 7.1x M&C Saatchi plc United Kingdom 3.89 -5% 246.5 222.9 275.5 31.7 11.5% 10.7% 0.8x 7.0x MDC Partners Inc. * United States 17.17 -2% 546.8 1,211.0 1,102.6 78.7 7.1% 14.4% 1.1x 15.4x Next Fifteen Communications Group plc United Kingdom 1.51 -16% 90.2 101.7 147.2 17.3 11.7% 2.6% 0.7x 5.9x Omnicom Group Inc. United States 59.77 -2% 15,455.6 18,500.1 14,311.0 2,097.9 14.7% 2.0% 1.3x 8.8x OPT, Inc. Japan 11.48 -3% 337.9 231.5 873.0 26.6 3.0% 26.2% 0.3x 8.7x Publicis Groupe SA France 69.56 -6% 14,608.5 14,400.4 8,715.1 1,656.0 19.0% 13.7% 1.7x 8.7x Sapient Corp. United States 11. 67 -7% 1, 626. 8 1, 386. 5 1, 121. 0 140. 1 12. 5% 98%9.8% 121.2x 999.9x The Interpublic Group of Companies, Inc. United States 13.84 -4% 5,929.0 7,001.0 6,992.4 826.6 11.8% -0.8% 1.0x 8.5x WPP plc Ireland 16.56 -3% 20,950.5 25,728.8 16,860.0 2,851.2 16.9% 3.5% 1.5x 9.0x
Adjusted Weighted Average 1.3x 9.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (1.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (12.0x)
M&A & INVESTMENT SUMMARY APRIL 2013 18 MARKETING SERVICES Transactions by Subsegment and Buyer Type
• There were four transactions announced in the Marketing Services segment across the Database/Analytics, Fulfillment, Logistics, and Loyalty/Retention subsegments • Select acquisitions › McCann Worldgroup India’s acquisition of End To End Marketing Solutions, an India-based database marketing services firm whose services span direct marketing, targeted and niche marketing, lead generation, email marktiketing, tlktitelemarketing, dddemand genera tion even ts, and channel markktieting › J. Knipper and Company’s acquisition of inVentiv Health’s MySTRO Sample Management and Fulfillment business, including regulatory compliance, sample accountability, and fulfillment services • Select investments › The $4 million investment in Everymove, a provider of health rewards programs, from BlueCross BlueShield Venture Partners, Sandbox Industries, and Blue Cross and Blue Shield of Nebraska
MARKETING SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Database/Analytics 1 25% - 0% 1 - 0 - 0 - Fulfillment 1 25% - 0% 1 - 0 - 0 - Logistics 1 25% 1.0 22% 0 - 0 - 1 1.0 Loyalty/Retention 1 25% 3.5 78% 0 - 0 - 1 3.5 Total 4 100% 4.5 100% 2 0.0 0 0.0 2 4.5
M&A & INVESTMENT SUMMARY APRIL 2013 19 MARKETING SERVICES PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States $19.89 -3% $1,468.4 $1,543.5 $186.2 $261.6 $1,109.5 $223.4 20.1% -1.9% 1.4x 6.9x Aimia Inc. Canada 15.79 -4% 2,722.5 3,130.1 543.3 795.7 2,256.3 349.2 15.5% 6.3% 1.4x 9.0x Allianc e Data Systems Corporation * United States 171.77 -1% 8,815.9 13,015.3 893.4 5,092.7 3,803.2 1,164.0 30.6% 14.4% 3.4x 11.2x AMREP Corporation United States 9.00 -43% 54.0 62.4 18.0 26.4 81.7 2.1 2.5% -7.5% 0.8x 30.0x Cenveo Inc. United States 2.04 -35% 130.3 1,305.8 8.1 1,183.6 1,797.6 202.7 11.3% -5.8% 0.7x 6.4x Consolidated Graphics, Inc. United States 35.67 -14% 343.1 486.8 8.5 152.2 1,047.8 103.5 9.9% -0.5% 0.5x 4.7x Convergys Corporation United States 17.02 -3% 1,788.2 1,245.8 638.5 60.6 2,001.0 234.9 11.7% -12.8% 0.6x 5.3x CSG Systems International Inc . United States 21.61 -7% 733.9 833.4 169.3 275.8 752.5 140.0 18.6% 2.2% 1.1x 6.0x Dat a Group Inc Canada 2.01 -62% 47.1 147.6 - 101.4 337.4 29.4 8.7% 1.3% 0.4x 5.0x DST Syst ems Inc . United States 69.15 -3% 3,049.5 3,576.2 487.2 1,013.9 2,605.8 377.0 14.5% 6.4% 1.4x 9.5x Elanders AB Sweden 3.22 -17% 73.2 177.4 25.8 129.6 295.5 31.5 10.6% 4.6% 0.6x 5.6x Fair Isaac Corporation * United States 46.58 -3% 1,670.9 2,043.8 90.8 504.0 715.9 187.8 26.2% 11.7% 2.9x 10.9x Harte-Hanks Inc . United States 7.93 -19% 501.5 562.1 49.6 110.3 760.0 84.5 11.1% -10.1% 0.7x 6.7x High Co. SA France 6.39 -13% 66.9 30.8 60.2 23.6 174.3 16.6 9.5% -3.6% 0.2x 1.8x InnerWorkings Inc. United States 10.07 -36% 510.0 557.8 17.2 65.0 797.7 37.4 4.7% 25.9% 0.7x 14.9x Innotrac Corp. United States 3.99 -1% 52.1 50.7 4.0 2.6 107.7 7.5 6.9% 27.2% 0.5x 6.8x Insignia Systems Inc. United States 2.01 -13% 27.5 7.2 20.3 - 23.6 2.2 9.3% 44.8% 0.3x 3.3x Multiplus SA * Brazil 16.38 - 35% 2,653.3 2,134.4 507.7 - 720.5 118.1 16.4% 18.4% 3.0x 18.1x Points International Ltd. * Canada 17.38 -3% 263.6 218.9 45.1 - 148.4 3.5 2.4% 21.1% 1.5x 62.7x Quad/Graphics, Inc. United States 20.90 -15% 994.7 2,352.6 16.9 1,374.5 4,094.0 563.4 13.8% -5.3% 0.6x 4.2x R.R. Donnelley & Sons Company United States 12.31 -7% 2,233.0 5,477.2 430.7 3,438.6 10,235.5 1,213.2 11.9% -3.0% 0.5x 4.5x SoundBite Communications, Inc. * United States 3.07 -3% 50.6 35.6 15.0 - 48.1 0.4 0.9% 15.4% 0.7x 81.7x StarTek, Inc. United States 6.93 -4% 105.9 96.8 9.2 0.0 198.1 6.3 3.2% -9.8% 0.5x 15.3x Sykes Enterprises, Incorporated United States 15.39 -7% 662.6 568.9 187.3 93.6 1,127.7 107.0 9.5% -3.6% 0.5x 5.3x Teleperformance France 44.01 -1% 2,437.2 2,334.8 229.6 119.1 3,094.6 379.7 12.3% 10.4% 0.8x 6.1x TeleTec h Holdings Inc . United States 21.29 -2% 1,111.3 1,071.9 164.5 111.0 1,158.7 147.4 12.7% -2.7% 0.9x 7.3x Transcontinental Inc. Canada 12.88 -1% 1,001.6 1,428.8 27.6 361.5 2,153.7 362.1 16.8% 9.7% 0.7x 3.9x Valassis Communications Inc. United States 25. 63 -18% 1, 003. 7 1, 490. 3 94. 7 587. 6 2, 126. 0 281. 1 13. 2% -37%3.7% 07x0.7x 53x5.3x Viad Corp United States 26.05 -9% 529.5 426.6 114.2 2.2 1,041.6 72.2 6.9% 13.1% 0.4x 5.9x Vistaprint N.V. Netherlands 40.80 -6% 1,331.9 1,519.1 64.7 230.5 1,137.8 108.1 9.5% 16.3% 1.3x 14.0x
Adjusted Weighted Average 0.9x 9.2x
*Calc ulation is market c ap weighted and exc ludes revenue multiples that are 2.0 standard deviations above the mean (2.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (29.9x)
M&A & INVESTMENT SUMMARY APRIL 2013 20 TRADITIONAL MEDIA Transactions by Subsegment and Buyer Type
• With 28 transactions announced, month-over-month activity in the Traditional Media segment increased 56 percent in April. Entertainment Media and Broadcast Television were the most active subsegments with 11 transactions total, of which five reported $439 million in value • Select acquisitions › Sinclair Broadcast Group’s $354 million acquisition of Fisher Communications, a television and radio broadcasting company › Alloy Digital’s acquisition of Digital Broadcasting Group, a content production and distribution company driving viewership and tune-in of original video programming and client-created TV spots across multiple digital points • Select investments › The $28 million investment in RRsat Global Communications Network, which provides content management and distribution services to television and radio broadcasters, from Viola Private Equity and Vpartners › The $4 million investment in Songza, which offers a free streaming music service that has expert-made playlists and runs on the Web and various touch screen platforms, from unnamed investors
TRADITIONAL MEDIA TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Entertainment Media 6 21% 37.9 8% 3 27.5 0 - 3 10.4 Broadcast Television 5 18% 400.6 82% 4 353.9 1 46.7 0 - Consumer Magazine Publishing 4 14% 15. 4 3% 4 15. 4 0 - 0 - Cable & Satellite Television 3 11% 27.8 6% 1 - 1 - 1 27.8 Newspaper Publishing 3 11% - 0% 3 - 0 - 0 - Radio 3 11% 5.1 1% 2 1.3 0 - 1 3.8 Consumer Book Publishing 2 7% - 0% 2 - 0 - 0 - Digital Place-Based Media 1 4% - 0% 1 - 0 - 0 - TradlOdditional Outdoor 1 4% - 0% 1- 0 - 0 - Total 28 100% 486.7 100% 21 398.1 2 46.7 5 42.0
M&A & INVESTMENT SUMMARY APRIL 2013 21 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Large Cap Diversified Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CBS Corporation United States $45.78 -5% $29,088.1 $34,302.1 $708.0 5,922.0 $14,333.0 $3,608.0 25.2% -2.2% 2.4x 9.5x Discovery Communications, Inc. * United States 78.82 -3% 28,095.6 32,043.6 1,297.0 5,243.0 4,487.0 1,997.0 44.5% 7.7% 7.1x 16.0x News Corp. United States 30.97 -4% 72,002.3 82,155.3 7,806.0 16,457.0 34,333.0 6,862.0 20.0% 0.5% 2.4x 12.0x Time Warner Inc. United States 59.78 -2% 55,844.4 72,875.4 2,841.0 19,871.0 28,689.0 7,425.0 25.9% -2.0% 2.5x 9.8x Viacom, Inc. United States 63.99 -7% 31,710.6 39,594.6 671.0 8,389.0 13,053.0 3,826.0 29.3% -13.6% 3.0x 10.3x The Walt Disney Company United States 62.84 -2% 113,453.6 130,057.6 3,207.0 17,457.0 42,840.0 10,900.0 25.4% 4.6% 3.0x 11.9x
Adjusted Weighted Average 2.7x 11.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (14.0x)
Radio Broadcasting Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Beasley Broadc ast Group Inc . United States $6.53 -5% $149.2 $254.3 $11.7 116.8 $101.8 $29.9 29.4% 3.9% 2.5x 8.5x CC Media Holdings, Inc. United States 2.85 -54% 244.4 20,137.1 1,235.3 20,824.0 6,229.2 1,912.1 30.7% 0.5% 3.2x 10.5x Cumulus Media Inc. United States 3.19 -8% 560.6 3,245.4 88.1 2,701.1 1,076.6 354.1 32.9% 107.0% 3.0x 9.2x Dial Global, Inc . * United States 0.42 -89% 24.0 312.3 8.4 286.0 239.0 4.7 2.0% 82.0% 1.3x 66.1x Emmis Communications Corp. United States 1.53 -40% 60.3 257.7 11.2 160.6 227.6 34.3 15.1% 0.2% 1.1x 7.5x Entercom Communications Corp. United States 7.91 -6% 292.3 865.9 8.9 582.6 388.9 109.1 28.1% 1.6% 2.2x 7.9x Journal Communications Inc. United States 6.81 -3% 344.8 588.6 2.4 246.2 412.5 90.9 22.0% 16.1% 1.4x 6.5x Radio One Inc . United States 1.53 -21% 75.4 1,058.8 58.9 818.7 424.6 148.9 35.1% 16.6% 2.5x 7.1x Sa le m Co mmunic a t io ns Co rp. United States 9.18 -9% 226.5 495.1 0.4 269.0 229.2 50.0 21.8% 5.0% 2.2x 9.9x SIRIUS XM Radio Inc . * United States 3.25 -4% 20,742.1 22,923.7 520.9 2,435.2 3,494.7 1,186.9 34.0% 12.9% 6.6x 19.3x Spanish Broadcasting System Inc. United States 3.01 -60% 21.9 367.5 26.7 279.9 139.5 43.1 30.9% -1.0% 2.6x 8.5x Pandora Media, Inc. United States 13.93 -46% 2,429.3 2,340.3 89.0 - 427.1 (30.8) NM 55.7% 5.5x NM
Adjusted Weighted Average 4.1x 18.4x
*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 (32.1x)
B-to-B Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Euromoney Institutional Investor PLC United Kingdom $15.25 -3% $1,921.5 $1,980.7 $21.8 72.6 $635.5 $186.4 29.3% 8.5% 3.1x 10.6x Global Sourc es Lt d. Bermuda 6.82 -20% 232.4 127.5 116.3 - 231.7 45.7 19.7% 3.0% 0.5x 2.8x Informa plc Switzerland 7.44 -11% 4,486.2 5,734.8 38.8 1,343.0 2,003.3 599.4 29.9% -3.4% 2.9x 9.6x TechTarget, Inc. United States 4.44 -39% 171.1 116.1 55.0 - 100.0 14.7 14.7% -5.2% 1.2x 7.9x The Dolan Company United States 1.73 -79% 52.5 215.4 3.5 166.0 249.2 27.8 11.2% -11.2% 0.9x 7.8x UBM plc * Ireland 11.39 -8% 2,778.3 3,727.5 127.6 1,074.8 1,296.7 315.3 24.3% 2.0% 2.9x 11.8x
Adjusted Weighted Average 2.7x 9.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (11.3x)
M&A & INVESTMENT SUMMARY APRIL 2013 22 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Publishing Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A. H. Belo Corporation United States $5.80 -5% $127.9 $96.1 $34.1 - $434.5 $28.3 6.5% -4.3% 0.2x 3.4x Daily Mail and General Trust plc * United Kingdom 10.71 -6% 3,987.3 5,105.4 168.8 1,173.7 2,816.3 513.3 18.2% -0.1% 1.8x 9.9x Emmis Communic ations Corp. United States 1.53 -40% 60.3 257.7 11.2 160.6 227.6 34.3 15.1% 0.2% 1.1x 7.5x Gannett Co., Inc. United States 20.16 -9% 4,626.2 6,083.2 175.0 1,432.1 5,372.3 1,111.3 20.7% 3.2% 1.1x 5.5x Glacier Media, Inc. Canada 1.64 -27% 146.5 320.2 5.2 132.3 331.1 48.2 14.5% 23.4% 1.0x 6.6x John Wiley & Sons Inc. United States 38.17 -27% 2,255.9 2,706.3 285.9 736.2 1,769.5 334.3 18.9% -0.2% 1.5x 8.1x Journal Communications Inc. United States 6.81 -3% 344.8 588.6 2.4 246.2 412.5 90.9 22.0% 16.1% 1.4x 6.5x Martha Stewart Living Omnimedia Inc . United States 2472.47 -35% 166. 3 115. 7 49. 1 - 185. 0 (4. 4) NM -15. 4% 06x0.6x NM Meredith Corporation United States 38.82 -16% 1,715.9 2,046.4 24.7 365.0 1,458.9 258.4 17.7% 7.7% 1.4x 7.9x Reed Elsevier Group * United Kingdom 11.70 -6% 24,751.6 29,832.3 2,673.1 2,407.7 9,554.5 2,209.0 2.3% 2.3% 3.1x 13.5x Scholastic Corporation United States 27.45 -21% 875.5 891.2 196.7 212.4 1,968.8 174.8 8.9% -2.3% 0.5x 5.1x The E. W. Scripps Company United States 13.89 -1% 794.6 750.3 242.6 196.1 903.5 138.9 15.4% 24.0% 0.8x 5.4x The McClatchy Company United States 2.31 -33% 200.0 2,036.6 113.1 1,949.7 1,219.2 310.2 25.4% -2.8% 1.7x 6.6x The McGraw-Hill Companies, Inc . * United States 54.11 -8% 14,831.6 14,587.6 761.0 1,256.0 4,596.0 1,618.0 35.2% 23.3% 3.2x 9.0x The New York Times Company United States 8.86 -20% 1,310.9 1,056.0 955.3 697.1 1,980.6 276.7 14.0% -14.7% 0.5x 3.8x The Washington Post Company United States 443.34 -3% 3,291.2 3,083.0 931.4 699.2 4,021.3 551.4 13.7% -3.0% 0.8x 5.6x Valassis Communications Inc . United States 25.63 -18% 1,003.7 1,490.3 94.7 587.6 2,126.0 281.1 13.2% -3.7% 0.7x 5.3x
Adjusted Weighted Average 121.2x 747.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.5x)
Entertainment Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA DreamWorks Animation SKG Inc . United States $19.28 -16% $1,620.3 $1,710.2 $59.2 $165.0 $748.4 $101.7 13.6% 2.0% 2.3x 16.8x Eros International Plc United Kingdom 3.73 -23% 464.3 654.4 102.1 260.5 200.9 57.8 28.8% 6.5% 3.3x 11.3x Lions Gate Entertainment Corp. * United States 24.81 -5% 3,354.0 4,673.7 48.2 1,367.9 2,567.6 198.7 7.7% 94.6% 1.8x 23.5x Live Nation Entertainment, Inc. United States 12.63 -3% 2,375.0 3,309.2 1,001.1 1,740.0 5,819.0 410.8 7.1% 8.1% 0.6x 8.1x Village Roadshow Limited Australia 5.39 -4% 905.7 1,186.9 174.0 446.3 964.2 170.7 17.7% 2.3% 1.2x 7.0x World Wrestling Entertainment Inc. United States 9.18 -1% 686.2 533.9 152.4 - 484.9 55.8 11.5% -0.4% 1.1x 9.6x
Adjusted Weighted Average 1.5x 10.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (3.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (19.0x)
Film Exhibition Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Carmike Cinemas Inc. United States $17.56 -7% $313.3 $679.5 $68.5 $434.7 $539.3 $97.9 18.1% 12.9% 1.3x 6.9x Cinemark Holdings Inc . United States 30.89 -3% 3,550.8 4,747.4 742.7 1,928.4 2,473.5 546.6 22.1% 8.5% 1.9x 8.7x Cineplex Inc. Canada 34.00 -1% 2,136.5 2,259.4 47.9 172.2 1,095.4 200.5 18.3% 9.4% 2.1x 11.3x IMAX Corporation * Canada 25.53 -9% 1,707.3 1,710.1 21.3 11.0 277.5 75.6 27.2% 14.0% 6.2x 22.6x National CineMedia, Inc. United States 16.24 -4% 924.6 1,779.7 106.6 879.0 451.9 217.0 48.0% 1.8% 3.9x 8.2x RealD Inc . United States 14.97 -3% 745.9 752.5 27.7 35.0 220.2 43.3 19.7% -13.7% 3.4x 17.4x Regal Entertainment Group United States 17.94 -4% 2,789.7 4,683.9 109.5 2,005.5 2,782.1 496.2 17.8% -0.5% 1.7x 9.4x
Adjusted Weighted Average 2.7x 9.9x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (6.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (17.9x)
M&A & INVESTMENT SUMMARY APRIL 2013 23 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Out-of-Home Media Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AirMedia Group Inc. * China $1.65 -43% $100.2 ($20.5) $118.3 $0.0 $286.7 $21.4 7.5% 6.0% NM NM APG|SGA SA Switzerland 250.62 -1% 737.9 648.7 94.5 - 349.6 122.0 34.9% 1.9% 1.9x 5.3x Clear Channel Outdoor Holdings Inc. United States 7.23 -8% 2,583.1 7,203.7 572.1 4,944.8 2,945.9 711.9 24.2% -2.0% 2.4x 10.1x Clear Media Ltd. Hong Kong 0.72 -4% 381.7 228.8 166.4 - 196.4 80.2 40.9% 2.4% 1.2x 2.9x Foc us Media Holding Ltd. Hong Kong 27.27 0% 3,602.1 3,010.9 789.3 200.0 927.5 354.4 38.2% 17.9% 3.2x 8.5x JCDecaux SA France 27.48 -6% 6,105.8 6,012.3 621.4 583.7 3,458.1 734.0 21.2% 6.5% 1.7x 8.2x Lamar Advertising Co. * United States 46.82 -4% 4,409.0 6,510.9 58.9 2,160.9 1,182.9 517.7 43.8% 4.4% 5.5x 12.6x Mood Media Corporation Canada 0.92 -77% 158.5 696.4 46.4 588.3 443.8 110.4 24.9% 61.5% 1.6x 6.3x National CineMedia, Inc. United States 16.24 -4% 924.6 1,779.7 106.6 879.0 451.9 217.0 48.0% 1.8% 3.9x 8.2x NT N Buzztime Inc . * United States 0.36 -10% 25.8 23.2 2.7 0.2 24.1 1.2 4.9% 0.8% 1.0x 19.8x Tom Group Ltd. Hong Kong 0.11 -19% 436.1 660.4 102.8 285.9 284.6 1.7 0.6% -5.2% 2.3x NM Valassis Communic ations Inc . United States 25.63 -18% 1,003.7 1,490.3 94.7 587.6 2,126.0 281.1 13.2% -3.7% 0.7x 5.3x
Adjusted Weighted Average 2.3x 9.1x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (13.5x)
Cable & Satellite Television Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Cablevision Systems Corporation United States $14.86 -21% $3,970.9 $14,641.2 $364.5 11,021.6 $6,705.5 $1,913.5 28.5% 0.1% 2.2x 7.7x Charter Communications, Inc. United States 100.74 -6% 10,192.8 23,060.8 7.0 12,875.0 7,504.0 2,644.0 35.2% 4.2% 3.1x 8.7x Comcast Corporation United States 41.30 -3% 107,628.6 153,109.6 12,415.0 40,458.0 63,002.0 20,323.0 32.3% 7.5% 2.4x 7.5x DIRECT V United States 56.56 -2% 32,292.4 48,318.4 1,902.0 17,528.0 29,740.0 7,226.0 24.3% 9.2% 1.6x 6.7x Dish Net work Corp. United States 39.19 -4% 17,765.0 22,450.1 7,237.8 11,888.1 14,266.5 2,961.3 20.8% 1.6% 1.6x 7.6x General Communication Inc. United States 9.71 -7% 398.5 1,363.9 24.5 957.7 724.5 223.0 30. 8% 555%.5% 1.9x 6.1x Liberty Global Inc. * United States 72.37 -5% 18,097.6 45,966.5 2,230.2 30,224.0 10,310.8 4,757.2 46.1% 8.4% 4.5x 9.7x Time Warner Cable Inc. United States 93.89 -8% 27,318.5 50,856.5 3,470.0 26,990.0 21,727.0 7,626.0 35.1% 8.7% 2.3x 6.7x Virgin Media, Inc. United States 48.78 -3% 13,195.0 22,068.4 345.2 9,815.7 6,281.7 2,544.2 40.5% 3.0% 3.5x 8.7x Ziggo N.V. * Netherlands 35.84 -5% 7,167.9 10,859.7 121.9 3,964.7 1,970.2 1,138.5 57.8% 2.3% 5.5x 9.5x
Adjusted Weighted Average 2.5x 7.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.1x)
CblCable Networ ks Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AMC Networks Inc. United States $63.01 -5% $4,548.9 $6,129.1 $611.0 2,191.1 $1,352.6 $458.2 33.9% 13.9% 4.5x 13.4x British Sky Broadcasting Group plc United Kingdom 13.13 -7% 20,952.7 23,180.9 2,272.2 4,599.8 11,312.5 2,576.2 22.8% 2.7% 2.0x 9.0x CBS Corporation United States 45.78 -5% 29,088.1 34,302.1 708.0 5,922.0 14,333.0 3,608.0 25.2% -2.2% 2.4x 9.5x Crown Media Holdings Inc. United States 2.05 -5% 737.3 1,192.4 43.7 498.8 351.7 264.4 75.2% 5.4% 3.4x 4.5x Discovery Communications, Inc. * United States 78.82 -3% 28,095.6 32,043.6 1,297.0 5,243.0 4,487.0 1,997.0 44.5% 7.7% 7.1x 16.0x Grupo Televisa, S.A.B. Mexico 25.32 -13% 14,432.9 17,812.5 1,878.1 4,492.1 5,656.2 2,239.5 39.6% 7.9% 3.1x 8.0x Outdoor Channel Holdings, Inc. * United States 8.75 -8% 221.0 163.0 58.0 - 77.3 9.1 11.8% 7.6% 2.1x 17.9x Scripps Networks Interactive, Inc. United States 66. 58 -6% 9, 812. 3 11, 202. 6 437. 5 1, 384. 2 2, 366. 2 1, 049. 1 44. 3% 11. 3% 47x4.7x 10. 7x
Adjusted Weighted Average 4.0x 9.4x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (15.5x)
M&A & INVESTMENT SUMMARY APRIL 2013 24 TRADITIONAL MEDIA PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Broadcast Television Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Belo Corp. United States $10.72 -3% $1,112.4 $1,826.9 $9.4 733.0 $719.2 $259.2 36.0% 9.9% 2.5x 7.0x Entravision Communic ations Corporation United States 3.86 -6% 334.5 639.2 36.1 340.8 225.8 76.9 34.1% 14.7% 2.8x 8.3x Fisher Communications, Inc. * United States 41.42 0% 366.2 345.9 20.4 0.2 171.1 31.7 18.5% 6.7% 2.0x 10.9x Gray T elevision Inc . United States 6.35 -6% 365.3 1,187.1 11.1 832.9 402.3 170.7 42.4% 26.5% 3.0x 7.0x Journal Communications Inc. United States 6.81 -3% 344.8 588.6 2.4 246.2 412.5 90.9 22.0% 16.1% 1.4x 6.5x LIN TV Corp. United States 12.31 -8% 666.3 1,513.5 46.3 890.2 553.5 210.7 38.1% 38.4% 2.7x 7.2x Nexstar Broadcasting Group, Inc. * United States 24.35 -11% 723.8 1,512.4 69.0 857.6 378.6 146.9 38.8% 23.5% 4.0x 10.3x Sinclair Broadcast Group Inc. * United States 26. 80 -6% 2, 189. 6 4, 434. 6 22. 9 2, 273. 4 1, 121. 9 438. 2 39. 1% 39. 1% 40x4.0x 10. 1x The E. W. Scripps Company United States 13.89 -1% 794.6 750.3 242.6 196.1 903.5 138.9 15.4% 24.0% 0.8x 5.4x
Adjusted Weighted Average 2.9x 6.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (4.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (10.0x)
Yellow Pages Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Dex Media Inc . United States $0.00 -100% $0.0 $0.0 $221.4 $4,588.6 $1,401.2 $750.6 53.6% -13.0% Eniro AB Sweden 2.40 -4% 240.9 647.4 47.2 445.5 601.3 150.4 25.0% -9.0% 1.1x 4.3x PagesJaunes Groupe France 2.11 -45% 585.0 2,753.5 117.5 2,227.3 1,357.4 572.6 42.2% -4.1% 2.0x 4.8x PubliGroupe AG Switzerland 145.21 -13% 327.4 197.5 191.3 45.0 311.4 (22.1) NM -16.9% 0.6x NM Yellow Media Limited Canada 8.60 -18% 240.4 1,016.9 107.2 891.4 1,111.3 525.3 47.3% -16.6% 0.9x 1.9x
Adjusted Weighted Average 1.3x 4.0x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (5.0x)
M&A & INVESTMENT SUMMARY APRIL 2013 25 TECHNOLOGY Transactions by Subsegment and Buyer Type
• Activity in the Technology segment was again led by the Financial subsegment, with 13 deals announced for $60 million in reported value. Data Center was the highest reported value subsegment with six deals announced worth $231 million in reported value • Select acquisitions › Fusion-io’s $119 million acquisition of NexGen Storage, a developer of data storage systems that leverage flash memory for fftaster performance › 3CX’ acquisition of LazyDroid, which offers a remote desktop application for Android which makes it easier for users to access their files, documents, photos, camera, and more • Select investments › The $37 million investment in MuleSoft, a company offering an integration platform for connecting SaaS and enterprise applications in the cloud and on-premise, led by New Enterprise Associates › The $25 million investment in MarkLogic, which sells databases that were built to handle unstructured data, such as text, photos, or other data that doesn't fit into the row-and-column structure of traditional databases, led by existing investors Sequoia Capital and Tenaya Capital
TECHNOLOGY TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Financial 13 35% 59.9 13% 3 3.4 0 - 10 56.5 Big Data 6 16% 59.7 13% 1 - 0 - 5 59.7 Data Center 6 16% 230.7 52% 3 201.7 0 - 3 29.0 Infrastructure 3 8% 64. 3 14% 1 34. 0 0 - 2 30. 3 Cloud Computing 2 5% 7.7 2% 0 - 0 - 2 7.7 Cloud Storage 2 5% - 0% 2 - 0 - 0 - Mobile Infrastructure 2 5% - 0% 2 - 0 - 0 - Enabling 1 3% 2.4 1% 0 - 0 - 1 2.4 Home Automation 1 3% 3.8 1% 0 - 0 - 1 3.8 Virtualization 1 3% 17.3 4% 0 - 0 - 1 17.3 Total 37 100% 445.8 100% 12 239.1 0 0.0 25 206.7
M&A & INVESTMENT SUMMARY APRIL 2013 26 TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 3M Company United States $104.71 -4% $72,270.3 $73,830.3 $4,531.0 $6,072.0 $30,052.0 $7,806.0 26.0% 0.9% 2.5x 9.5x ACI Worldwide, Inc. United States 47.01 -9% 1,872.8 2,182.9 76.3 386.5 691.0 158.7 23.0% 38.7% 3.2x 13.8x ADATA Technology Co., Ltd. Taiwan 1.97 -2% 416.2 505.6 81.8 172.8 971.0 26.8 2.8% -6.8% 0.5x 18.9x Advanced Micro Devices, Inc. United States 2.82 -62% 2,014.0 3,055.0 1,002.0 2,042.0 4,925.0 (170.0) NM -24.7% 0.6x NM Akamai Technologies, Inc. United States 43.91 -1% 7,816.0 7,302.8 437.3 - 1,422.5 527.7 37.1% 18.3% 5.1x 13.8x AVG Technologies N.V. Netherlands 16.32 -10% 882.0 896.4 51.9 97.2 377.7 118.7 31.4% 28.2% 2.4x 7.6x Bright c ove, Inc . United States 6.02 -71% 169.1 142.2 30.0 - 92.8 (9.2) NM 31.7% 1.5x NM CA Technologies United States 26.97 -2% 12,296.3 11,177.3 2,560.0 1,441.0 4,680.0 1,690.0 36.1% -1.6% 2.4x 6.6x Carbonite, Inc. United States 10.64 -6% 276.3 221.0 55.3 - 90.0 (5.4) NM 35.9% 2.5x NM Check Point Software Technologies Ltd. Israel 46.62 -18% 9,278.7 7,893.7 1,503.3 - 1,352.3 762.5 56.4% 5.7% 5.8x 10.4x ChinaCache International Holdings Ltd. China $3.82 -35% $89.4 $38.5 $50.9 $0.0 $130.5 $8.3 6.4% 31.6% 0.3x 4.6x Citrix Systems, Inc. United States 62.16 -27% 11,599.4 10,941.5 928.6 - 2,669.5 605.8 22.7% 15.8% 4.1x 18.1x CommVault Systems, Inc. * United States 73.54 -15% 3,394.5 2,997.2 397.2 - 471.6 77.6 16.5% 23.4% 6.4x 38.6x Cray Inc. * United States 21.16 -10% 787.8 549.8 305.6 - 388.3 17.4 4.5% 25.9% 1.4x 31.7x Crossroads Systems, Inc. United States 2.36 -62% 27.9 28.1 2.5 2.6 15.0 (10.0) NM 7.2% 1.9x NM Dat alink Corporat ion United States 11.19 -11% 209.2 211.5 10.3 6.0 505.7 23.8 4.7% 22.3% 0.4x 8.9x Dell Inc . United States 13.40 -17% 23,432.7 19,761.7 12,777.0 9,085.0 56,940.0 4,223.0 7.4% -8.3% 0.3x 4.7x Dot Hill Systems Corp. United States 1.51 -15% 88.5 51.0 40.3 2.8 194.5 (6.3) NM -0.7% 0.3x NM Elecom Co., Ltd. Japan 13.33 -37% 293.7 215.8 115.5 27.3 738.4 82.2 11.1% 5.6% 0.3x 2.6x EMC Corporation United States 22.43 -20% 47,121.8 43,467.3 6,167.1 1,710.1 22,006.9 5,237.3 23.8% 7.4% 2.0x 8.3x ePlus inc . United States 45.48 -8% 370.7 445.3 43.4 117.9 965.8 72.7 7.5% 43.5% 0.5x 6.1x Euronet Worldwide Inc. United States 30.53 -1% 1,519.3 1,655.1 191.2 301.2 1,305.6 154.5 11.8% 9.1% 1.3x 10.7x F-Secure Oyj Finland 2.11 -12% 327.4 276.2 43.9 - 201.4 43.0 21.3% 4.6% 1.4x 6.4x Fusion-io, Inc. United States 18.78 -42% 1,814.0 1,459.4 368.5 - 432.9 3.2 0.7% 33.4% 3.4x NM Gemalt o NV Netherlands 81.70 -18% 6,869.9 6,425.1 472.8 13.5 2,960.6 420.3 14.2% 11.4% 2.2x 15.3x Google Inc. United States 824.57 -2% 273,564.3 230,842.3 48,088.0 7,210.0 53,499.0 16,813.0 31.4% 33.8% 4.3x 13.7x GraphOn Corp. United States 0.52 -35% 45.5 41.6 4.0 - 6.5 (3.2) NM -0.7% 6.4x NM Green Dot Corporation United States 15.71 -39% 566.7 149.0 408.8 50.7 565.9 82.1 14.5% 11.6% 0.3x 1.8x Imperva Inc. United States 38.98 -2% 955.7 852.3 102.3 - 111.3 (7.9) NM 33.5% 7.7x NM Integrated Electrical Services, Inc. United States 5.83 -10% 88.1 79.7 20.9 12.5 474.4 5.0 1.1% 17.0% 0.2x 15.9x Intel Corporation United States 23.95 -16% 119,055.5 115,241.5 17,073.0 13,231.0 53,015.0 21,148.0 39.9% -1.9% 2.2x 5.4x IBM Corporation United States 202.54 -6% 224,575.1 246,102.1 11,176.0 33,269.0 103,242.0 26,612.0 25.8% -3.5% 2.4x 9.2x Interxion Holding NV Netherlands 25.03 -6% 1,706.4 1,995.8 90.6 379.9 365.4 142.5 39.0% 13.4% 5.5x 14.0x J-Stream Inc. Japan 771.32 -6% 89.7 83.1 16.0 - 54.3 4.5 8.3% -3.3% 1.5x 18.5x Keynot e Syst ems, Inc . United States 11.21 -31% 204.8 146.9 51.2 - 123.9 15.4 12.4% 5.2% 1.2x 9.5x Limelight Networks, Inc. United States 1.93 -39% 185.5 59.7 128.0 2.1 180.2 (5.0) NM 5.2% 0.3x NM LogMeIn, Inc. * United States 22.58 -34% 549.0 343.7 212.1 - 143.6 6.1 4.3% 14.8% 2.4x 56.1x LSI Corporation United States 6.54 -19% 3,596.6 2,938.1 676.0 - 2,452.3 347.5 14.2% 11.8% 1.2x 8.5x Melbourne IT Ltd. Australia 2.26 -11 % 186.4 203.3 18.5 35.5 177.1 24.3 13.7% -5.1% 1.1x 8.4x Micron Technology Inc. United States 9.42 -8% 9,703.6 11,855.6 2,228.0 3,651.0 8,047.0 1,508.0 18.7% -4.0% 1.5x 7.9x Microsoft Corporation United States 33.10 0% 276,421.6 217,398.6 68,098.0 14,218.0 76,012.0 30,493.0 40.1% 4.1% 2.9x 7.1x NEC Corporation Japan 2.60 -13% 6,742.9 13,417.4 2,356.7 8,489.0 35,776.2 2,656.8 7.4% 1.9% 0.4x 5.1x NetApp, Inc. United States 34.89 -10% 12,574.6 8,088.3 6,723.9 2,237.6 6,318.4 857.5 13.6% 6.0% 1.3x 9.4x Oracle Corporation United States 32.78 -10% 154,415.4 141,202.4 33,407.0 19,752.0 37,149.0 17,286.0 46.5% 0.5% 3.8x 8.2x ProAct IT Group AB Sweden 11.72 -43% 109.1 123.8 15.8 28.9 373.7 22.2 5.9% 9.0% 0.3x 5.6x QUALCOMM Incorporated United States 61.60 -10% 106,434.6 92,980.6 13,275.0 31.0 21,639.0 7,630.0 35.3% 24.6% 4.3x 12.2x Qualys, Inc. * United States 11.00 -33% 348.3 231.9 118.4 2.0 91.4 10.3 11.3% 20.0% 2.5x 22.4x Quantum Corporation United States 1.43 -38% 344.6 498.2 51.3 205.0 607.9 0.1 0.0% -7.5% 0.8x NM Rac kspace Hosting, Inc. United States 48.20 -41% 6,651.9 6,485.2 292.1 125.4 1,309.2 422.6 32.3% 27.7% 5.0x 15.3x Red Hat , Inc . * United States 47.93 -21% 9,087.5 8,208.0 879.5 - 1,328.8 270.9 20.4% 17.3% 6.2x 30.3x SanDisk Corp. United States 52.44 -11% 12,760.2 11,168.0 2,875.5 1,696.6 5,187.7 1,188.0 22.9% -6.9% 2.2x 9.4x SAP AG Germany 79.54 -7% 94,853.8 95,439.9 3,285.6 6,559.4 21,108.3 7,142.0 33.8% 13.2% 4.5x 13.4x Seagate Technology Public Limited Company Ireland 36.70 -8% 13,170.2 14,130.2 1,872.0 2,818.0 15,409.0 3,593.0 23.3% 15.7% 0.9x 3.9x
M&A & INVESTMENT SUMMARY APRIL 2013 27 TECHNOLOGY PUBLIC COMPANY VALUATION
($ in millions, except stock price data)
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Silicon Graphics International Corp. United States 13.00 -19% 423.5 274.1 124.1 - 776.2 (2.5) NM 0.9% 0.4x NM SK Hynix, Inc. South Korea 27.17 0% 18,860.2 23,134.3 1,677.9 6,085.1 9,554.8 2,798.3 29.3% -2.2% 2.4x 8.3x Sony Corporation Japan 16.54 -6% 16,725.1 21,884.1 15,680.4 16,036.6 76,815.4 3,393.8 4.4% 2.6% 0.3x 6.4x Splunk, Inc. * United States 40.80 -4% 4,202.8 3,896.9 305.9 - 198.9 (17.2) NM 64.5% 19.6x NM Symantec Corporation United States 24.30 -2% 16,747.3 15,571.3 4,252.0 3,076.0 6,839.0 1,839.0 26.9% 1.7% 2.3x 8.5x Synchronoss Technologies, Inc. United States 28.34 -11% 1,071.5 1,024.8 56.2 9.5 287.4 62.7 21.8% 19.4% 3.6x 16.3x Teradata Corporation United States 51.07 -37% 8,429.6 7,974.6 729.0 274.0 2,639.0 615.0 23.3% 6.9% 3.0x 13.0x Trend Micro Inc. Japan 28.00 -4% 3,692.8 2,473.9 1,374.0 - 1,084.9 345.7 31.9% -2.6% 2.3x 7.2x The KEYW Holding Corporation United States 13.59 -17% 497.3 590.6 5.6 89.7 265.6 27.6 10.4% 29.8% 2.2x 21.4x Unisys Corporation United States 19.13 -23% 844.0 426.1 655.6 210.3 3,587.9 308.6 8.6% -7.3% 0.1x 1.4x VeriSign, Inc. United States 46.07 -8% 6,944.8 6,088.5 1,556.4 697.6 904.3 548.6 60.7% 13.6% 6.7x 11.1x VMware, Inc. United States 70.50 -37% 30,198.8 25,712.2 4,630.8 450.0 4,741.3 1,172.7 24.7% 19.2% 5.4x 21.9x Western Digital Corporation United States 55.28 -5% 13,304.0 11,257.0 3,816.0 2,128.0 16,377.0 3,745.0 22.9% 61.7% 0.7x 3.0x Xoom Corporation United States 18.46 -29% 608.5 497.9 70.2 40.0 87.4 (1.9) NM 0.0% 5.7x NM
Adjusted Weighted Average 3.2x 9.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.4x)and EBITDA multiples that are 1.0 standard deviations above the mean (21.9x)
M&A & INVESTMENT SUMMARY APRIL 2013 28 SOFTWARE Transactions by Subsegment and Buyer Type
• There were 54 transactions announced in the Software segment. Software Development Tools was the most active and highest reported value subsegment with 11 deals announced, of which five reported $280 million in value • Select acquisitions › Goldman Sachs Group’s $786 million acquisition of Ebix, which provides data exchange software and eCommerce solutions to the insurance industry › Intel’s $180 million acquisition of Mashery, a cloud-based manager of Application Programming Interfaces that enable developers to work with different cloud services and software solutions › Facebook’s $85 million acquisition of Parse, which offers a series of back-end tools for mobile developers • Select investments › The $150 million Oak Investment Partners-led investment in Precision for Medecine, a provider of services and infrastructure to support life science companies that focus on precision medicine › The $105 million investment in Pivotal One, the spin-out from EMC and VMware that has developed an Enterprise Platform-as-a-Service enabling the rapid creation of consumer-grade applications, from General Electric, at a valuation of $1.1 billion
SOFTWARE TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Software Development Tools 11 20% 279.7 30% 6 85.0 0 - 5 194.7 Application Management 6 11% 157.4 17% 1 - 0 - 5 157.4 Healthcare 5 9% 265.0 28% 1 105.0 0 - 4 160.0 IfInfras truc ture 5 9% 22. 5 2% 3 - 0 - 2 22. 5 Credit/Risk 4 7% 0.0 0% 4 - 0 - 0 - Engineering 4 7% 25.0 3% 3 - 0 - 1 25.0 Financial 4 7% 38.4 4% 2 - 0 - 2 38.4 Security 4 7% 41.1 4% 2 16.7 0 - 2 24.4 Other* 8 15% 109.7 12% 5 100.0 1 - 2 9.7 Total 54 100% 939.4 100% 29 306.7 1 0.0 24 632.8 *Other includes Collaboration, Data Management, ERP, Geo-Demo, HR, and Legal
M&A & INVESTMENT SUMMARY APRIL 2013 29 SOFTWARE PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Financial & Credit/Risk Management Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Advent Software, Inc. United States 29.04 -3% 1,470.0 1,377.7 184.7 92.5 364.4 82.7 22.7% 7.9% 3.8x 16.7x Ebix Inc. United States 18.61 -25% 691.3 735.6 37.4 81.7 199.4 84.5 42.4% 18.0% 3.7x 8.7x EPIQ Systems, Inc. United States 13.97 -3% 501.8 726.4 2.8 233.0 379.9 74.6 19.6% 28.5% 1.9x 9.7x Fidessa group plc United Kingdom 27.93 -10% 1,035.8 923.6 117.2 - 452.9 92.2 20.4% 0.1% 2.0x 10.0x Guidewire Soft ware, Inc . * United States 40.08 -3% 2,262.5 2,096.7 165.8 - 260.1 18.7 7.2% 28.2% 8.1x 112.0x Innovation Group plc United Kingdom 0.40 -3% 394.0 357.1 72.0 30.0 312.3 30.6 9.8% 10.2% 1.1x 11.7x Management Consulting Group PLC United Kingdom 0.50 -13% 240.2 287.4 24.2 73.4 464.5 43.6 9.4% -5.6% 0.6x 6.6x MdlModel N, Inc. UitdUnited SttStates 19. 78 -11% 424. 0 416. 6 12. 7 5. 3 88. 5 1. 5 17%1.7% 00%0.0% 474.7x NM NetSuite Inc. * United States 87.96 -1% 6,443.3 6,252.7 190.7 - 331.1 (21.0) NM 31.3% 18.9x NM Performant Financial Corporation United States 9.73 -31% 454.6 564.5 37.8 147.8 210.1 65.1 31.0% 28.9% 2.7x 8.7x RealPage, Inc . United States 20.40 -24% 1,590.3 1,566.5 22.8 - 336.7 51.6 15.3% 22.5% 4.7x 30.4x Solera Holdings Inc . United States 57.58 -2% 3,966.5 4,769.2 448.2 1,152.6 801.3 338.8 42.3% 6.6% 6.0x 14.1x SS&C Tec hnologies Holdings, Inc . United States 30.69 -8% 2,484.4 3,410.3 68.8 967.5 631.4 243.1 38.5% 68.1% 5.4x 14.0x Temenos Group AG Switzerland 23.66 -3% 1,635.4 1,755.9 92.8 210.7 453.5 82.7 18.2% -3.7% 3.9x 21.2x Tyler Tec hnologies, Inc . United States 63.24 -1% 1,992.3 1,987.8 4.5 - 376.4 74.0 19.7% 18.1% 5.3x 26.9x
Adjusted Weighted Average 4.9x 17.2x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (13.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (50.2x)
Healthcare Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Accelrys Inc. United States 9.85 -1% 550.2 419.9 130.3 - 165.2 10.5 6.4% 10.8% 2.5x 39.9x Allsc ripts Healthc are Solutions, Inc . United States 13.84 -3% 2,443.3 2,783.6 104.0 444.3 1,446.3 124.3 8.6% 0.2% 1.9x 22.4x Athenahealth, Inc. * United States 96.26 -4% 3,534.4 3,341.3 47.8 105.0 451.3 37.9 8.4% 28.7% 7.4x 88.3x Cegedim SA France 28.74 -20% 401.4 1,042.4 57.3 698.4 1,215.3 201.9 16.6% 1.1% 0.9x 5.2x Cerner Corporation United States 96.77 -1% 16,632.7 15,810.0 1,005.2 182.4 2,645.9 745.6 28.2% 14.7% 6.0x 21.2x Co mput e r P ro gra ms & S y s t e ms Inc . United States 52.46 -11% 581.3 563.8 17.5 - 188.4 45.5 24.2% 6.1% 3.0x 12.4x Craneware plc United Kingdom 6.57 -13% 177.6 150.2 28.6 - 42.4 12.1 28.4% 5.3% 3.5x 12.5x Greenway Medical Technologies, Inc. United States 13.47 -31% 399.0 371.7 27.4 - 134.7 7.9 5.9% 27.4% 2.8x 46.9x McKesson Corporation United States 105.82 -5% 24,644.3 26,397.3 2,726.0 4,479.0 123,534.0 2,846.0 2.3% 3.0% 0.2x 9.3x MedAssets, Inc. United States 18.73 -6% 1,140.8 2,021.3 8.5 875.3 663.1 209.4 31.6% 11.0% 3.0x 9.7x Medidata Solutions, Inc. United States 66.36 -3% 1,763.2 1,642.9 120.4 0.1 231.2 37.0 16.0% 19.2% 7.1x 44.4x Merge Healthc are Inc orporated United States 3.12 -23% 291.6 498.5 44.5 250.2 251.6 31.5 12.5% 4.5% 2.0x 15.8x Quality Systems Inc. United States 17.87 -54% 1,063.9 957.2 106.7 - 457.9 108.0 23.6% 9.6% 2.1x 8.9x Streamline Health Solutions, Inc. * United States 6.26 -16% 79.1 93.1 7.5 13.7 23.8 1.8 7.5% 38.9% 3.9x 52.3x
Adjusted Weighted Average 3.0x 15.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (51.4x)
M&A & INVESTMENT SUMMARY APRIL 2013 30 SOFTWARE PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
HR Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA 51job Inc. China 57.60 -7% 1,677.9 1,271.8 406.1 - 232.2 82.5 35.6% 11.4% 5.5x 15.4x Allocate Software plc. United Kingdom 1.04 -26% 66.9 63.6 9.8 6.4 58.7 6.9 11.7% 21.3% 1.1x 9.3x Concur Technologies, Inc. * United States 73.11 -9% 4,066.1 3,836.5 466.3 258.0 481.2 37.8 7.9% 22.3% 8.0x 101.5x Cornerstone OnDemand, Inc. United States 36.28 -2% 1,844.3 1,773.5 76.2 6.9 131.6 (28.3) NM 61.9% 13.5x NM Dic e Holdings, Inc . United States 8.44 -21% 505.3 493.7 45.6 34.0 199.7 69.1 34.6% 7.8% 2.5x 7.1x LinkedIn Corporation * United States 192.09 -5% 21,197.0 20,447.4 830.3 - 1,108.6 149.5 13.5% 79.8% 18.4x 136.8x Monster Worldwide, Inc. United States 4.38 -55% 486.7 502.8 130.9 169.1 868.6 135.5 15.6% -15.2% 0.6x 3.7x SbSaba SftSoftware, Inc. UitdUnited SttStates 9109.10 -13% 271. 1 256. 9 15. 0 0. 9 121. 3 (9. 8) NM 77%7.7% 212.1x NM The Ultimate Software Group, Inc. United States 96.59 -15% 2,659.1 2,590.7 79.0 10.6 351.9 48.4 13.8% 24.4% 7.4x 53.5x Workday, Inc. * United States 62.65 -4% 10,436.5 9,671.1 790.3 25.0 273.7 (88.8) NM 103.6% 35.3x NM
Adjusted Weighted Average 14.6x 32.3x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (30.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (99.9x)
Security Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA AVG Technologies N.V. Netherlands 16.32 -10% 882.0 896.4 60.8 75.2 377.7 118.7 31.4% 28.2% 2.4x 7.6x Checkpoint Systems Inc. United States 11.57 -17% 474.6 469.8 118.8 113.3 690.8 38.5 5.6% -9.6% 0.7x 12.2x Cisco Systems, Inc. United States 20.92 -5% 111,544.9 81,469.9 46,376.0 16,291.0 47,252.0 13,356.0 28.3% 5.4% 1.7x 6.1x Fortinet Inc. United States 17.96 -36% 2,912.9 2,452.6 460.4 - 552.2 109.1 19.8% 20.7% 4.4x 22.5x Infoblox Inc . United States 22.11 -8% 1,080.5 900.7 179.8 - 192.4 (3.4) NM 26.7% 4.7x NM Symantec Corporation United States 24.30 -2% 16,747.3 15,571.3 4,252.0 3,076.0 6,839.0 1,839.0 26.9% 1.7% 2.3x 8.5x Websense, Inc. United States 17.84 -10% 649.1 633.4 83.7 68.0 359.4 54.4 15.1% -1.5% 1.8x 11.6x Gemalt o NV Netherlands 81.70 -18% 6,869.9 6,425.1 472.8 13.5 2,960.6 420.3 14.2% 11.4% 2.2x 15.3x Imperva Inc . United States 38. 98 -2% 955. 7 852. 3 109. 9 - 111. 3 (7. 9) NM 33. 5% 77x7.7x NM Juniper Networks, Inc. United States 16.55 -28% 8,455.7 6,798.1 2,656.8 999.2 4,392.1 658.5 15.0% 0.3% 1.5x 10.3x NQ Mobile Inc . * China 8.63 -30% 442.7 320.1 127.9 - 91.8 3.9 4.2% 125.6% 3.5x 82.1x Palo Alto Networks, Inc. United States 54.10 -25% 3,740.0 3,402.6 337.4 - 323.8 (1.4) NM 74.8% 10.5x NM Proofpoint, Inc. United States 18.32 -4% 623.8 537.2 90.2 3.6 112.4 (14.0) NM 28.2% 4.8x NM Qihoo 360 Technology Co. Ltd. * China 34.30 -2% 4,211.1 3,830.4 380.8 - 329.0 66.7 20.3% 96.0% 11.6x 57.5x Sourcefire, Inc. * United States 47.76 -20% 1,448.5 1,323.7 124.8 - 233.0 17.0 7.3% 28.6% 5.7x 78.1x Trend Micro Inc. Japan 28.00 -4% 3,692.8 2,473.9 1,374.0 - 1,084.9 345.7 31.9% -2.6% 2.3x 7.2x VeriSign, Inc. United States 46.07 -8% 6,944.8 6,088.5 1,562.4 706.1 904.3 548.6 60.7% 13.6% 6.7x 11.1x
Adjusted Weighted Average 2.4x 7.6x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (10.8x)and EBITDA multiples that are 1.0 standard deviations above the mean (53.1x)
M&A & INVESTMENT SUMMARY APRIL 2013 31 SOFTWARE PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Engineering Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Ansys, Inc. United States 80.86 -1% 7,516.3 6,992.3 651.5 26.6 810.4 382.1 47.1% 12.8% 8.6x 18.3x Autodesk, Inc. United States 39.38 -5% 8,833.8 7,625.1 1,954.3 745.6 2,312.2 477.6 20.7% 4.4% 3.3x 16.0x Aveva Group plc United Kingdom 34.54 -5% 2,348.5 2,089.6 268.3 - 335.9 99.7 29.7% 15.3% 6.2x 21.0x Dassault Systemes SA France 121.95 0% 15,290.8 13,384.3 1,956.1 76.9 2,628.3 814.3 31.0% 11.7% 5.1x 16.4x
Adjusted Weighted Average 5.5x 16.7x
*Calculation is market cap weighted and excludes revenue multiples that are 2. 0 standard deviations above the mean (10. 3x)and3x)and EBITEBITDADA multiplesmultiples thatthat areare 11. 00 standardstandard deviationsdeviations aboveabove thethe meanmean (20(20. 2x)2x)
Infrastructure Software Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA BMC Soft ware Inc . United States 45.48 -5% 6,498.6 6,660.1 1,181.5 1,343.0 2,197.5 608.2 27.7% 1.3% 3.0x 11.0x CA Technologies United States 26.97 -2% 12,296.3 11,177.3 2,560.0 1,441.0 4,680.0 1,690.0 36.1% -1.6% 2.4x 6.6x Co mmV a ult S y s t e ms , Inc . United States 73.54 -15% 3,394.5 2,997.2 397.2 - 471.6 77.6 16.5% 23.4% 6.4x 38.6x Daegis Inc . United States 1.14 -34% 16.8 30.6 4.4 18.2 40.2 3.3 8.1% -11.5% 0.8x 9.4x Guidance Software, Inc. * United States 10.52 -20% 296.3 264.3 26.1 0.4 130.4 4.1 3.2% 21.8% 2.0x 63.8x Informatica Corporation United States 32.93 -31% 3,556.7 2,965.7 592.9 - 829.9 169.5 20.4% 2.2% 3.6x 17.5x IntraLinks Holdings, Inc . United States 5.72 -17% 313.8 314.7 75.3 76.3 216.7 6.8 3.2% 1.8% 1.5x 46.1x Rally Software Development Corp. United States 18.13 -2% 412.3 394.7 17.6 - 56.8 (8.9) NM 37.6% 6.9x NM ServiceNow, Inc. * United States 40.96 -7% 5,451.6 5,112.7 338.9 - 282.2 (26.6) NM 67.0% 18.1x NM TIBCO Software Inc. United States 19.41 -41% 3,185.0 2,942.7 806.7 563.4 1,036.7 210.1 20.3% 7.9% 2.8x 14.0x
Adjusted Weighted Average 3.2x 13.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (14.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (46.9x)
M&A & INVESTMENT SUMMARY APRIL 2013 32 COMMUNICATIONS Transactions by Subsegment and Buyer Type
• There were 11 transactions in the Communications segment in April, of which nine reported $867 million in value • Select acquisitions › Cisco’s $310 million acquisition of UK-based Ubiquisys, a mobile communications company that designs and develops small-cell communications devices for mobile operators and consumer › Ericsson’s $200 million purchase of Microsoft’s Mediaroom IPTV business, which makes software used by phone companies to deliver television over the Internet › ViaSat’s acquisition of LonoCloud, a provider of cloud networking software runs as an overlay to enterprise network environments, enabling low-cost, distributed computing across multiple servers in the cloud • Select investments › The $15 million investment in Kaazing, a provider of live Web and mobile communication solutions and the developer of HTML5 WebSocket, from New Enterprise Associates and Columbus Nova Technology Partners
COMMUNICATIONS TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Communications Software 3 27% 224.2 26% 1 200.0 0 - 2 24.2 Enterprise Mobility 2 18% 53.0 6% 0 - 0 - 2 53.0 Networking Equipment 2 18% 253.0 29% 1 - 1 253.0 0 - Software Defined Networking 2 18% 9.2 1% 1 - 0 - 1 9.2 Telephone Equipment 1 9% 310.0 36% 1 310.0 0 - 0 - Web Conferencing Software 1 9% 17.1 2% 0 - 0 - 1 17.1 Total 11 100% 866.5 100% 4 510.0 1 253.0 6 103.5
M&A & INVESTMENT SUMMARY APRIL 2013 33 COMMUNICATIONS PUBLIC COMPANY VALUATION
($ in millions, except stock
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Aastra Technologies Ltd. Canada $18.77 -9% $216.8 $100.0 $115.8 0.2 $582.9 $32.9 5.6% -12.5% 0.2x 3.0x ADTRAN Inc. United States 21.00 -32% 1,287.7 1,085.8 247.9 46.0 628.9 61.2 9.7% -8.4% 1.7x 17.7x Advanced Media, Inc. * Japan 1,353.92 -20% 206.6 184.7 24.7 - 15.4 (2.0) NM -10.0% 12.0x NM Alcatel-Lucent, S.A. France 1.37 -27% 3,113.7 3,939.4 6,498.8 6,343.2 19,046.7 982.3 5.2% -5.7% 0.2x 4.0x Allot Communications Ltd. Israel 11.32 -61% 368.7 225.7 142.9 - 104.8 12.9 12.3% 34.7% 2.2x 17.5x Ambient Corporation United States 1.99 -80% 33.2 19.8 13.3 - 42.8 (5.1) NM -31.1% 0.5x NM Anaren, Inc. United States 23.41 -2% 309.2 273.3 35.9 - 154.2 26.0 16.9% -1.4% 1.8x 10.5x Aruba Networks, Inc. United States 22.49 -16% 2,562.6 2,160.3 402.3 - 571.0 40.6 7.1% 22.8% 3.8x 53.2x AudioCodes Ltd. * Israel 3.94 -17% 149.9 126.1 44.6 20.8 127.4 1.3 1.0% -13.4% 1.0x 96.3x Aviat Networks, Inc. United States 3.20 -18% 196.0 112.0 92.9 9.8 478.3 12.3 2.6% 6.5% 0.2x 9.1x Axesstel Inc. United States 1.23 -37% 29.7 38.2 1.9 10.4 59.7 4.9 8.2% 10.2% 0.6x 7.8x Blackline GPS Corp. Canada 1.44 -3% 25.3 19.6 5.8 0.1 2.6 (3.0) NM 18.1% 7.6x NM Blonder Tongue Laboratories United States 0.96 -43% 6.0 12.2 0.5 6.7 30.6 (1.1) NM 14.9% 0.4x NM BroadSoft , Inc . United States 25.56 -42% 715.8 639.6 163.6 87.4 164.8 31.0 18.8% 19.4% 3.9x 20.6x Brocade Communications United States 5.82 -10% 2,623.1 2,839.1 683.6 899.6 2,265.9 493.0 21.8% 4.8% 1.3x 5.8x CalAmp Corp. United States 11.13 -5% 314.4 256.0 63.1 4.7 180.6 18.7 10.4% 30.2% 1.4x 13.7x Calix Inc. * United States 8.53 -10% 417.3 369.2 48.1 - 342.2 2.2 0.6% -2.7% 1.1x 166.2x CCCiena Corporation UnitedSd States 14.96 -19% 1,51888.8 230662,306.6 637. 2 1,42025.0 1,803870.3 88. 9 4.8% 8.4% 1.2x 25.9x Cisco Systems, Inc. United States 20.92 -5% 111,544.9 81,469.9 46,376.0 16,291.0 47,252.0 13,356.0 28.3% 5.4% 1.7x 6.1x Clearfield, Inc. United States 7.03 -5% 90.2 75.0 15.3 - 42.0 5.4 12.9% 13.1% 1.8x 13.8x ClearOne, Inc. United States 9.31 -2% 84.9 29.4 42.6 - 47.6 7.0 14.7% 4.5% 0.6x 4.2x COM DEV International Ltd. Canada 3.64 -9% 278.4 279.2 26.4 20.3 213.7 30.9 14.4% 6.3% 1.3x 9.0x Communications Systems Inc. United States 9.82 -26% 83.7 54.7 30.6 1.6 104.2 5.5 5.3% -27.5% 0.5x 9.9x Corning Inc. United States 14.50 0% 21,388.8 18,591.8 5,775.0 2,932.0 7,906.0 2,466.0 31.2% 0.2% 2.4x 7.5x CTX Virtual Technologies, Inc. United States 1.70 -5% 13.6 13.5 0.1 - 40.0 (0.5) NM 16.6% 0.3x NM DDS Wireless International Inc. Canada 2.21 -7% 30.6 23.4 7.2 - 40.8 3.9 9.5% -11.0% 0.6x 6.1x Dialogic , Inc . United States 0.78 -85% 12.4 84.1 6.5 78.3 160.0 (11.6) NM -19.2% 0.5x NM Digi International Inc. United States 9.12 -19% 238.5 158.8 79.8 - 190.1 17.3 9.1% -5.8% 0.8x 9.2x DragonWave Inc . Canada 1.97 -51% 74.8 57.7 36.4 19.1 104.7 (47.8) NM 102.9% 0.6x NM EchoStar Corp. United States 39.27 -2% 3,467.4 4,417.7 1,547.6 2,488.5 3,121.7 590.0 18.9% 13.0% 1.4x 7.5x Emulex Corporation United States 6.00 -29% 543.6 332.4 91.6 - 487.2 67.1 13.8% -1.8% 0.7x 5.0x Ericsson Sweden 12.47 -6% 40,092.8 33,639.9 11,040.3 4,398.9 35,047.8 4,103.2 11.7% 1.7% 1.0x 8.2x Extreme Networks Inc. United States 3.33 -15% 312.1 192.2 119.9 - 307.5 16.4 5.3% -5.3% 0.6x 11.7x F5 Networks, Inc. United States 76.43 -44% 5,990.6 5,467.7 522.8 - 1,430.9 462.8 32.3% 12.9% 3.8x 11.8x Finisar Corp. United States 12.84 -25% 1,199.7 982.4 265.5 40.0 930.8 68.4 7.3% -2.0% 1.1x 14.4x Fleetmatics Group PLC Ireland 23.47 -14% 812.9 737.2 100.1 24.4 127.5 23.7 18.6% 38.1% 5.8x 31.1x Franklin Wireless Corp. United States 1.60 -35% 16.6 5.3 11.9 0.1 36.6 1.0 2.7% 78.6% 0.1x 5.3x Harmonic Inc . United States 5.68 -6% 646.2 418.0 228.3 - 515.7 30.5 5.9% -5.2% 0.8x 13.7x Harris Corporat ion United States 46.20 -12% 5,213.7 6,679.7 459.0 1,925.0 5,188.3 1,049.6 20.2% -1.8% 1.3x 6.4x Infoblox Inc. United States 22.11 -8% 1,080.5 900.7 179.8 - 192.4 (3.4) NM 26.7% 4.7x NM Interactive Intelligenc e Group * United States 41.43 -11% 823.9 755.0 68.9 - 237.4 11.1 4.7% 13.3% 3.2x 68.1x JDS Uniphase Corporation United States 13.50 -14% 3,193.1 2,724.4 608.1 159.6 1,709.3 148.2 8.7% 0.2% 1.6x 18.4x Juniper Networks, Inc. United States 16.55 -28% 8,455.7 6,798.1 2,656.8 999.2 4,392.1 658.5 15.0% 0.3% 1.5x 10.3x KVH Indust ries Inc . United States 13.21 -12% 204.7 177.5 44.8 15.1 150.3 15.2 10.1% 30.9% 1.2x 11.7x Meru Networks, Inc. United States 5.65 -19% 124.7 98.0 35.6 8.9 102.8 (16.0) NM 14.6% 1.0x NM Mitel Networks Corporation Canada 3.50 -30% 187.9 402.0 100.6 314.7 583.6 81.2 13.9% -3.8% 0.7x 5.0x Motorola Solutions, Inc . United States 57.20 -12% 15,538.8 14,299.8 3,718.0 2,454.0 8,715.0 1,483.0 17.0% 4.7% 1.6x 9.6x Netgear Inc . United States 29.79 -27% 1,146.9 724.4 422.4 - 1,239.7 133.1 10.7% 1.0% 0.6x 5.4x Nokia Corporat ion Finland 3.35 -30% 12,436.7 7,718.2 13,366.6 7,203.5 36,740.3 1,382.5 3.8% -19.5% 0.2x 5.6x Nuance Communications, Inc. United States 19.04 -26% 6,021.9 7,358.2 1,005.3 2,341.6 1,813.8 371.8 20.5% 25.4% 4.1x 19.8x Numerex Corp. United States 10.32 -26% 188.9 192.2 4.9 8.3 66.7 5.7 8.5% 14.4% 2.9x 33.8x
M&A & INVESTMENT SUMMARY APRIL 2013 34 COMMUNICATIONS PUBLIC COMPANY VALUATION
($ in millions, except stock
Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Optical Cable Corp. United States 4.18 -19% 26.0 34.8 0.5 9.9 83.5 6.5 7.7% 14.4% 0.4x 5.4x Palo Alto Networks, Inc. * United States 54.10 -25% 3,740.0 3,402.6 337.4 - 323.8 (1.4) NM 74.8% 10.5x NM PCTEL, Inc. United States 6.67 -14% 117.2 66.1 51.2 0.0 88.8 4.7 5.3% 15.6% 0.7x 14.0x PHAZAR CORP United States 1.17 -59% 2.7 2.5 0.7 0.5 5.9 (1.2) NM -9.5% 0.4x NM Plantronics, Inc. United States 43.82 -5% 1,866.7 1,557.8 328.9 20.0 735.6 147.6 20.1% 3.8% 2.1x 10.6x Polycom, Inc. United States 10.50 -18% 1,811.5 1,128.7 682.8 - 1,385.7 110.2 8.0% -8.9% 0.8x 10.2x Procera Networks, Inc. * United States 11.09 -57% 215.6 83.9 116.2 - 61.5 0.3 0.4% 23.4% 1.4x 306.9x QQpUALCOMM Incorporated United States 61.60 -10% 106,434.6 92,980.6 13,493.0 22.0 21,639.0 7,630.0 3535.3%.3% 24.24.6%6% 4.4.3x3x 12.212.2xx Research In Motion Limited Canada 16.38 -11% 8,436.8 5,723.8 2,654.0 - 11,073.0 1,238.0 11.2% -39.9% 0.5x 4.6x RadiSys Corporat ion United States 4.96 -27% 141.9 143.2 31.7 33.0 278.8 10.4 3.7% -16.2% 0.5x 13.8x Radware Ltd. Israel 14.99 -27% 672.0 609.2 62.8 - 189.3 38.6 20.4% 9.1% 3.2x 15.8x RELM Wireless Corp. United States 2.38 -5% 32.2 25.7 6.6 0.0 27.6 3.3 12.0% 14.4% 0.9x 7.7x Riverbed Technology, Inc. United States 14.85 -39% 2,421.2 2,536.8 406.7 522.2 900.6 137.4 15.3% 20.8% 2.8x 18.5x Sandvine Corporation Canada 2.04 -9% 281.6 201.0 83.0 4.0 92.9 7.5 8.0% 1.7% 2.2x 26.9x ShoreTel, Inc. United States 3.61 -30% 212.0 193.6 48.4 30.0 306.4 (9.0) NM 36.4% 0.6x NM Sierra Wireless Inc . Canada 11.06 -9% 340.7 278.4 55.9 - 406.4 12.8 3.2% -30.4% 0.7x 21.7x SolarWinds, Inc. * United States 50.85 -17% 3,819.4 3,553.6 265.8 - 282.2 139.1 49.3% 31.2% 12.6x 25.6x Solera Holdings Inc. United States 57.58 -2% 3,966.5 4,769.2 448.2 1,152.6 801.3 338.8 42.3% 6.6% 6.0x 14.1x Sonus Networks, Inc. United States 2.10 -26% 600.0 377.2 225.2 2.4 253.1 (24.1) NM -1.4% 1.5x NM S y mme t ric o m Inc . United States 5.20 -27% 209.7 140.0 69.7 - 221.5 12.2 5.5% -6.1% 0.6x 11.5x Telcoware Co Ltd South Korea 8.61 -17% 60.7 14.9 46.9 - 51.6 6.9 13.4% 13.5% 0.3x 2.2x TeleCommunication Systems United States 1.93 -29% 116.6 232.7 57.5 158.3 482.1 38.0 7.9% 10.8% 0.5x 6.1x Tellabs Inc. United States 2.07 -47% 739.9 168.3 781.2 209.6 1,004.1 13.4 1.3% -17.8% 0.2x 12.6x TESSCO Technologies Inc. United States 20.44 -21% 164.8 164.9 2.6 2.8 788.9 33.5 4.2% 17.9% 0.2x 4.9x Transmode Holding AB Sweden 12.06 -10% 335.2 270.3 64.5 - 155.6 28.1 18.1% 4.6% 1.7x 9.6x Ubiquitous Corporation * Japan 1,983.69 -23% 169.4 156.5 14.5 - 10.4 1.2 11.7% -11.6% 15.0x 128.0x Vecima Networks Inc. Canada 4424.42 -26% 98. 6 61. 5 41. 5 4. 0 103. 4 12. 2 11. 8% 29. 8% 060.6x 505.0x Verint Systems Inc. United States 33.04 -11% 1,733.7 2,377.2 223.6 576.7 839.5 162.2 19.3% 7.3% 2.8x 14.7x ViaSat Inc. United States 48.47 -5% 2,176.5 2,654.7 112.7 586.4 1,051.6 126.3 12.0% 25.3% 2.5x 21.0x Vonage Holdings Corporation United States 3.05 -3% 647.9 608.9 105.9 79.1 842.3 124.8 14.8% -2.8% 0.7x 4.9x Westell Technologies, Inc. United States 1.96 -19% 115.5 0.4 115.0 - 40.7 (8.2) NM -57.9% 0.0x NM ZTE Corp. China 1.84 -35% 6,222.4 9,032.4 2,583.6 5,196.5 13,466.3 (152.3) NM -6.9% 0.7x NM
Adjusted Weighted Average 2.4x 9.8x
*Calculation is market cap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.7x)and EBITDA multiples that are 1.0 standard deviations above the mean (67.0x)
M&A & INVESTMENT SUMMARY APRIL 2013 35 INFORMATION & BUSINESS SERVICES Transactions by Subsegment and Buyer Type
• A total of 30 acquisitions and 10 investments were announced in the Information & Business Services segment. Of these, 15 reported $2.7 billion in value • Select acquisitions › Roper Industries’ $1 billion acquisition of Managed Health Care Associates, a provider of services and solutions to support the needs of alternate site healthcare providers, from Diamond Castle Holdings › Frazier Healthcare Ventures’ $308 million buyout of AndersonBrecon (fka Anderson Packaging), which provides pharmaceutical commercial packaging solutions and clinical trials services for pharmaceutical and biotech companies, from pharmaceutical services company AmerisourceBergen • Select investments › Deerfield Management’s $35 million investment in WorldOne, a provider of healthcare data collection and research services › The $30 million investment in Credit Karma, a company that helps consumers track their credit scores, co-led by Ribbit Capital and Susquehanna Growth Equity
INFORMATION & BUSINESS SERVICES TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM IT Consulting/Systems Integration 10 25% 1,217.5 44% 8 97.5 1 1,100.0 1 20.0 BPO 8 20% 1,455.3 53% 4 1,035.6 3 384.7 1 35.0 Market Research 6 15% - 0% 4 - 1 - 1 - Credit/Risk Management Information 3 8% 38.5 1% 0 - 0 - 3 38.5 Marketing Data 3 8% 31. 2 1% 0 - 0 - 3 31. 2 Financial Information 2 5% - 0% 2 - 0 - 0 - Other* 8 20% 5.5 0% 7 - 0 - 1 5.5 Total 40 100% 2,748.0 100% 25 1,133.1 5 1,484.7 10 130.2 *Other includes Contact Center, Corporate Training, Engineering/Scientific/Tech Information, Financial Consulting, HR Information, and Management Consulting
M&A & INVESTMENT SUMMARY APRIL 2013 36 INFORMATION PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Financial & Credit/Risk Management Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Broadridge Financial Solutions, Inc. United States 25.18 -2% 3,068.3 3,333.6 259.1 524.4 2,336.3 351.9 15.1% 3.4% 1.4x 9.5x Co mput e rs ha re Limit e d Australia 10.29 -9% 5,725.5 7,070.6 446.2 1,781.7 2,016.2 355.4 17.6% 24.6% 3.5x 19.9x CoreLogic, Inc. United States 27.28 -8% 2,605.1 3,251.4 147.4 793.8 1,606.7 340.6 21.2% 16.4% 2.0x 9.5x CoStar Group Inc. * United States 108.41 -4% 3,094.1 3,093.0 167.4 166.3 385.3 59.7 15.5% 47.8% 8.0x 51.8x DST Syst ems Inc . United States 69.15 -3% 3,049.5 3,576.2 487.2 1,013.9 2,605.8 377.0 14.5% 6.4% 1.4x 9.5x Dun & Bradstreet Corp. United States 88.45 -4% 3,553.4 4,698.3 149.1 1,290.9 1,641.2 532.9 32.5% -6.6% 2.9x 8.8x Envestnet, Inc. * United States 18.22 -6% 589.2 559.2 30.0 - 157.3 15.3 9.7% 27.7% 3.6x 36.7x Equifax Inc. United States 61. 20 -3% 7, 381. 3 8, 922. 0 107. 6 1, 622. 3 2, 221. 1 679. 9 30. 6% 11. 4% 40x4.0x 13. 1x Experian plc Ireland 17.61 -5% 17,387.7 19,561.2 627.0 2,740.0 4,621.0 1,533.0 33.2% 14.4% 4.2x 12.8x FactSet Research Systems Inc. United States 94.07 -14% 4,137.4 3,971.2 166.1 - 834.1 317.2 38.0% 8.1% 4.8x 12.5x Fair Isaac Corporation United States 46.58 -3% 1,670.9 2,043.8 131.2 504.0 715.9 187.8 26.2% 11.7% 2.9x 10.9x Fidelity National Information Services, Inc. United States 42.05 -2% 12,301.5 16,472.7 590.6 4,611.8 5,872.2 1,677.2 28.6% 3.3% 2.8x 9.8x Financial Engines, Inc. * United States 36.37 -1% 1,748.2 1,567.3 181.2 0.2 185.8 32.5 17.5% 29.0% 8.4x 48.2x Lender Processing Services, Inc. United States 27.74 -10% 2,356.1 3,343.4 88.4 1,075.7 1,983.5 338.2 17.1% 2.7% 1.7x 9.9x Moody's Corp. United States 60.85 -3% 13,553.3 13,534.9 1,769.6 1,642.1 2,815.3 1,199.0 42.6% 19.8% 4.8x 11.3x Morningstar Inc. United States 66.01 -7% 3,067.5 2,739.2 326.8 - 666.4 205.1 30.8% 4.1% 4.1x 13.4x MSCI Inc. United States 34.10 -8% 4,114.3 4,714.8 254.2 854.7 973.0 438.0 45.0% 7.3% 4.8x 10.8x Reis, Inc . United States 16.03 -4% 174.6 169.6 6.7 - 32.2 6.5 20.2% 15.4% 5.3x 26.1x SEI Investments Co. United States 28.66 -2% 4,941.1 4,489.0 452.1 - 1,026.5 246.6 24.0% 9.8% 4.4x 18.2x McGraw Hill Financial, Inc. United States 54.11 -8% 14,831.6 14,587.6 1,905.0 799.0 4,596.0 1,618.0 35.2% 23.3% 3.2x 9.0x Thomson Reuters Corporation United States 33.51 -2% 27,777.5 35,196.4 527.0 7,510.0 13,138.0 2,952.0 22.5% -4.7% 2.7x 11.9x Verisk Analytics, Inc. United States 61.29 -2% 10,320.9 11,498.9 272.5 1,450.4 1,591.1 707.3 44.5% 16.5% 7.2x 16.3x
Adjusted Weighted Average 3.7x 12.2x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (29.7x)
Healthcare Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Nat ional Researc h Corp. United States 59.95 -4% 414.3 418.8 8.3 12.8 86.4 27.4 31.7% 14.1% 4.8x 15.3x The Advisory Board Company United States 49.15 -11% 1,725.6 1,627.1 98.5 - 431.6 65.8 15.2% 26.8% 3.8x 24.7x
Adjusted Weighted Average 4.0x 22.9x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (8.2x)and EBITDA multiples that are 1.0 standard deviations above the mean (32.5x)
M&A & INVESTMENT SUMMARY APRIL 2013 37 INFORMATION PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Marketing Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Acxiom Corporation United States 19.89 -3% 1,468.4 1,543.5 186.2 261.6 1,109.5 223.4 20.1% -1.9% 1.4x 6.9x Allianc e Data Systems Corporation United States 171.77 -2% 8,815.9 17,183.5 764.1 9,131.7 3,803.2 1,164.0 30.6% 14.4% 4.5x 14.8x Arbitron Inc. United States 46.69 -1% 1,251.5 1,185.1 66.5 - 449.9 124.8 27.7% 6.5% 2.6x 9.5x Brainjuic er Group Plc United Kingdom 3.91 -32% 49.1 43.2 6.1 - 33.8 3.2 9.5% 0.5% 1.3x 13.4x Cello Group Plc United Kingdom 0.75 -10% 61.8 75.5 6.7 20.9 219.7 12.8 5.8% 5.8% 0.3x 5.9x Cision AB Sweden 7.01 -23% 104.1 157.6 9.9 63.1 144.3 20.7 14.4% -0.8% 1.1x 7.6x comScore, Inc. * United States 16.17 -18% 577.2 530.0 73.7 18.9 261.8 18.9 7.2% 8.3% 2.0x 28.0x Cross Marketing Inc . Japan 12. 75 -21% 75. 5 67. 2 11. 1 1. 5 63. 0 8. 7 13. 8% 23. 1% 11x1.1x 77x7.7x Ebiquity plc United Kingdom 1.47 -6% 82.6 106.3 7.0 30.7 95.7 15.1 15.8% 24.6% 1.1x 7.0x GfK SE Germany 57.06 -3% 2,083.0 2,654.6 97.8 613.2 1,997.1 261.4 13.1% 10.2% 1.3x 10.2x Harris Interac tive Inc . United States 1.65 -6% 95.3 87.9 14.9 2.4 140.2 12.2 8.7% -9.7% 0.6x 7.2x Hart e- Hanks Inc . United States 7.93 -19% 501.5 562.1 49.6 110.3 760.0 84.5 11.1% -10.1% 0.7x 6.7x InnerWorkings Inc . United States 10.07 -36% 510.0 557.8 17.2 65.0 797.7 37.4 4.7% 25.9% 0.7x 14.9x INTAGE Inc . Japan 26.75 -1% 269.0 261.5 59.9 50.3 449.5 56.6 12.6% 6.1% 0.6x 4.6x Ipsos SA France 33.52 -24% 1,518.1 2,354.4 184.9 1,006.9 2,359.4 266.7 11.3% 31.3% 1.0x 8.8x Keynote Systems, Inc. United States 11.21 -31% 204.8 146.9 57.9 - 123.9 15.4 12.4% 5.2% 1.2x 9.5x Macromill, Inc. Japan 14.30 -4% 398.6 364.1 103.2 60.6 182.5 45.2 24.8% 24.0% 2.0x 8.0x NeuSt ar, Inc. United States 43.87 -7% 2,888.2 3,131.6 378.2 623.8 848.2 377.9 44.6% 25.9% 3.7x 8.3x Nielsen Holdings N.V. Netherlands 34.62 -6% 12,945.7 19,099.7 233.0 6,338.0 5,654.0 1,565.0 27.7% 1.6% 3.4x 12.2x Pearson plc United Kingdom 18.22 -10% 14,711.7 16,622.5 1,735.9 3,692.8 8,222.7 1,497.0 18.2% 5.0% 2.0x 11.1x Onvia Inc. * United States 4.64 -1% 39.7 27.5 12.5 - 22.0 0.6 2.8% -2.5% 1.3x 45.2x YouGov PLC United Kingdom 1.12 -12% 106.7 96.8 10.5 0.3 92.5 6.9 7.5% -1.1% 1.0x 14.0x
Adjusted Weighted Average 2.4x 11.5x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (24.4x)
Other Information Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Corporate Executive Board Co. United States 56.36 -6% 1,891.8 2,359.9 142.0 517.6 684.5 154.8 22.6% 37.0% 3.4x 15.2x Forrester Research Inc . United States 35.85 -3% 801.5 567.8 233.7 - 294.2 42.7 14.5% 2.1% 1.9x 13.3x Gartner Inc . United States 57.85 -1% 5,401.2 5,316.4 269.1 214.1 1,653.4 272.8 16.5% 9.6% 3.2x 19.5x IHS Inc. United States 97.43 -18% 6,404.4 7,141.2 318.7 1,055.5 1,569.7 352.4 22.4% 14.1% 4.5x 20.3x Informa plc Switzerland 7.44 -11% 4,486.2 5,734.8 38.8 1,343.0 2,003.3 599.4 29.9% -3.4% 2.9x 9.6x NIC Inc . United States 16.84 -13% 1,104.5 1,042.2 62.4 - 211.1 49.6 23.5% 16.7% 4.9x 21.0x Proofpoint, Inc. United States 18.32 -4% 623.8 537.2 90.2 3.6 112.4 (14.0) NM 28.2% 4.8x NM Reed Elsevier plc United Kingdom 11.70 -6% 25,434.9 30,515.6 2,673.1 2,407.7 9,635.3 2,209.0 22.9% 2.3% 3.2x 13.8x Solera Holdings Inc . United States 57.58 -2% 3,966.5 4,769.2 448.2 1,152.6 801.3 338.8 42.3% 6.6% 6.0x 14.1x SPS Commerce, Inc. * United States 47.13 -3% 698.1 625.6 72.6 - 84.3 7.5 8.9% 36.3% 7.4x 83.7x Wolters Kluwer NV Netherlands 22.12 -6% 6,534.1 9,302.3 432.5 3,178.9 4,750.5 1,193.2 25.1% 7.4% 2.0x 7.8x
Adjusted Weighted Average 3.4x 14.3x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (34.3x)
M&A & INVESTMENT SUMMARY APRIL 2013 38 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Consulting Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA CRA International Inc . United States 18.44 -20% 187.7 157.1 55.5 1.7 264.4 24.3 9.2% -10.6% 0.6x 6.5x FTI Consulting, Inc. United States 33.12 -13% 1,306.4 1,872.6 156.8 723.0 1,576.9 248.7 15.8% 0.6% 1.2x 7.5x Information Servic es Group, Inc . United States 1.98 -3% 72.4 112.0 23.5 63.1 192.7 15.4 8.0% 4.5% 0.6x 7.3x Navigant Consulting Inc. United States 12.33 -9% 621.9 784.1 1.1 134.7 744.3 113.3 15.2% 4.5% 1.1x 6.9x ICF International Inc. United States 27.11 -3% 534.6 624.8 14.7 105.0 943.4 91.0 9.6% 8.0% 0.7x 6.9x Huron Consulting Group Inc. United States 41.78 -4% 877.6 1,075.2 25.2 193.4 651.4 129.7 19.9% 7.1% 1.7x 8.3x The Hackett Group, Inc. United States 4.88 -18% 155.1 163.2 16.9 25.0 209.3 19.2 9.2% 4.4% 0.8x 8.5x Towers Watson & Co. United States 72. 92 -1% 5, 399. 0 5, 491. 3 455. 7 525. 0 3, 508. 2 663. 1 18. 9% 30%3.0% 16x1.6x 83x8.3x
Adjusted Weighted Average 1.4x 8.0x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (5.1x)and EBITDA multiples that are 1.0 standard deviations above the mean (20.0x)
HR Services Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Automatic Data Processing, Inc. United States 67.34 -1% 32,661.0 31,268.9 1,421.4 29.3 10,679.1 1,907.8 17.9% 6.8% 2.9x 16.4x BttBarrett BiBusiness SiServices Inc. UitdUnited SttStates 52. 94 -11% 372. 8 311. 2 62. 5 10. 5 431. 8 19. 9 4.6% 3%31.4% 0.7x 15.7x Capita PLC United Kingdom 14.04 -2% 9,214.8 11,222.9 533.0 2,700.0 5,447.9 884.4 16.2% 14.4% 2.1x 12.7x Dic e Holdings, Inc . United States 8.44 -21% 505.3 493.7 42.2 46.0 199.7 69.1 34.6% 7.8% 2.5x 7.1x Edenred SA France 33.29 -6% 7,511.9 7,481.7 1,892.0 1,830.0 1,286.8 408.7 31.8% 3.8% 5.8x 18.3x Insperity, Inc . United States 27.63 -19% 705.6 426.8 281.4 - 2,175.5 87.0 4.0% 6.9% 0.2x 4.9x LinkedIn Corporation * United States 192.09 -5% 21,197.0 20,447.4 749.5 - 1,108.6 149.5 13.5% 79.8% 18.4x 136.8x Marsh & McLennan Companies, Inc. United States 38.01 -2% 20,922.5 21,597.5 2,307.0 2,918.0 11,999.0 2,262.3 18.9% 2.6% 1.8x 9.5x Monster Worldwide, Inc . United States 4.38 -55% 486.7 502.8 148.2 164.2 868.6 135.5 15.6% -15.2% 0.6x 3.7x Paychex, Inc. United States 36.41 -1% 13,249.5 12,678.9 570.6 - 2,294.2 988.9 43.1% 5.8% 5.5x 12.8x Professional Diversity Network LLC United States 4.50 -45% 28.4 28.8 1.1 1.5 6.2 2.5 41.3% 10.5% 4.7x 11.3x Towers Watson & Co. United States 72.92 -1% 5,399.0 5,491.3 455.7 525.0 3,508.2 663.1 18. 9% 30%3.0% 16x1.6x 83x8.3x WageWorks, Inc. United States 25.61 -5% 821.3 560.7 305.1 44.4 177.3 28.7 16.2% 30.7% 3.2x 19.5x
Adjusted Weighted Average 3.1x 13.4x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (7.9x)and EBITDA multiples that are 1.0 standard deviations above the mean (33.7x)
M&A & INVESTMENT SUMMARY APRIL 2013 39 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
($ in millions, except stock price data)
Staffing & Recruiting Services Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Adecco S.A. Switzerland 53.49 -12% 10,100.9 11,366.9 1,456.9 2,738.5 27,076.3 1,207.7 4.5% 0.0% 0.4x 9.4x AMN Healthcare Servic es Inc. United States 13.73 -14% 629.5 782.7 1.9 159.2 979.7 70.9 7.2% 9.1% 0.8x 11.0x Brunel Int ernat ional NV Netherlands 42.36 -21% 1,023.7 894.2 130.0 - 1,622.5 96.5 5.9% 25.6% 0.6x 9.3x CDI Corp. United States 15.67 -14% 304.2 263.8 18.4 0.6 1,093.8 40.0 3.7% 0.9% 0.2x 6.6x Cross Country Healthcare, Inc. * United States 5.00 -20% 157.6 181.0 10.5 33.9 442.6 3.2 0.7% 0.7% 0.4x 57.2x CTPartners Exec utive Searc h Inc . United States 3.25 -48% 22.8 13.5 15.9 6.7 128.4 3.9 3.1% 6.0% 0.1x 3.5x Groupe CRIT SA France 19.71 -14% 218.9 261.6 - - 1,964.7 63.8 3.2% -1.5% 0.1x 4.1x Harvey Nash Group plc United Kingdom 1181.18 -7% 86. 5 79. 2 22. 7 14. 9 942. 5 18. 7 20%2.0% 11. 6% 01x0.1x 42x4.2x Hays plc United Kingdom 1.45 -9% 2,020.2 2,246.4 97.2 333.5 5,726.3 222.0 3.9% -0.6% 0.4x 10.1x Healthcare Locums Plc * United Kingdom 0.01 -82% 10.0 60.8 15.1 66.2 331.6 1.9 0.6% 7.4% 0.2x 32.3x Heidrick & Struggles International Inc. United States 13.22 -29% 238.7 121.1 117.6 - 443.8 33.0 7.4% -15.9% 0.3x 3.7x Hudson Global, Inc United States 3.30 -33% 105.6 67.2 38.7 0.3 777.6 7.6 1.0% -16.7% 0.1x 8.9x Impellam Group PLC United Kingdom 6.07 -18% 269.2 243.1 61.1 33.9 1,955.9 37.8 1.9% 7.0% 0.1x 6.4x Kelly Servic es, Inc . United States 17.02 -10% 647.1 634.9 76.3 64.1 5,450.5 96.8 1.8% -1.8% 0.1x 6.6x Kforce Inc. United States 15.12 -9% 520.0 540.8 1.4 22.1 1,079.8 60.5 5.6% -5.5% 0.5x 8.9x Korn/Ferry International United States 16.55 -15% 805.7 614.1 191.6 - 783.0 80.6 10.3% -0.8% 0.8x 7.6x ManpowerGroup Inc. United States 53.16 -8% 4,086.0 4,253.7 583.4 751.1 20,350.5 531.5 2.6% -7.6% 0.2x 8.0x Michael Paggpe International plc United Kingdom 5.80 -20% 1,781.3 1,685.8 115.0 15.3 1,608.9 123.1 7.7% -2.9% 1.0x 13.7x On Assignment Inc. United States 24.27 -7% 1,291.7 1,667.0 8.2 383.6 1,472.1 146.6 10.0% 131.9% 1.1x 11.4x Proffice AB (Publ) Sweden 3.42 -21% 233.5 259.7 14.4 40.2 748.9 12.6 1.7% 2.2% 0.3x 20.6x Randst ad Holding NV Netherlands 41.63 -7% 7,376.3 8,602.0 190.5 1,382.9 21,483.0 636.8 3.0% 0.5% 0.4x 13.5x Resources Connection Inc. United States 11.36 -17% 463.4 344.6 118.9 - 561.7 49.7 8.9% -1.8% 0.6x 6.9x Robert Half International Inc. United States 32.82 -13% 4,579.3 4,293.3 287.6 1.5 4,119.5 419.7 10.2% 5.3% 1.0x 10.2x Robert Walt ers plc United Kingdom 3.59 -5% 254.5 236.7 42.3 23.6 922.8 18.7 2.0% 7.5% 0.3x 12.7x SThree Plc. United Kingdom 5.22 -9% 624.3 580.3 45.3 - 925.6 46.8 5.1% 6.5% 0.6x 12.4x Synergie SA France 11.14 -8% 267.0 305.3 - - 1,910.2 56.0 2.9% 0.1% 0.2x 5.5x TrueBlue, Inc. United States 20.72 -3% 811.5 734.3 110.8 33.7 1,424.8 67.2 4.7% 5.3% 0.5x 10.9x USG People NV Netherlands 7.82 -16% 623.3 953.4 45.3 365.8 3,602.7 114.0 3.2% -11.3% 0.3x 8.4x
Adjusted Weighted Average 0.4x 10.3x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (1.0x)and EBITDA multiples that are 1.0 standard deviations above the mean (22.2x)
M&A & INVESTMENT SUMMARY APRIL 2013 40 BUSINESS SERVICES PUBLIC COMPANY VALUATIONS
IT Consulting/Systems Integration Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA A.L.D. Advanced Logistics Developments Ltd. Israel 0.18 -32% 4.1 4.6 - - 14.7 (0.8) NM -5.1% 0.3x NM Accenture plc Ireland 81.44 -1% 52,942.4 47,793.4 5,636.5 0.0 28,268.6 4,327.4 15.3% 3.6% 1.7x 11.0x Amdocs Limited Channel Islands 35.70 -3% 5,775.4 4,797.2 961.3 - 3,290.3 612.4 18.6% 1.9% 1.5x 7.8x Bec ht le AG Germany 44.25 -14% 929.2 875.1 151.4 97.2 2,764.6 134.6 4.9% 5.1% 0.3x 6.5x Booz Allen Hamilton Holding Corporation United States 15.19 -21% 2,101.3 3,510.1 317.6 1,726.4 5,753.4 524.0 9.1% -1.0% 0.6x 6.7x Broadridge Financial Solutions, Inc. United States 25.18 -2% 3,068.3 3,333.6 259.1 524.4 2,336.3 351.9 15.1% 3.4% 1.4x 9.5x Business & Decision SA France 4.02 -37% 31.7 71.6 7.3 44.9 304.0 16.5 5.4% -2.0% 0.2x 4.3x Cap Gemini S.A. France 45.99 -10% 7,267.3 6,282.2 2,667.3 1,633.6 13,532.9 1,294.7 9.6% 5.9% 0.5x 4.9x CGI Group, Inc. Canada 31.67 -1% 9,755.6 12,672.4 162.1 3,151.5 7,603.2 1,012.0 13.3% 87.9% 1.7x 12.5x Cognizant Tec hnology Solutions Corporation United States 64.80 -20% 19,601.1 16,737.4 2,863.8 - 7,346.5 1,518.1 20.7% 20.0% 2.3x 11.0x Computer Sc ienc es Corporation United States 46.85 -7% 7,190.7 7,636.7 2,203.0 2,629.0 15,784.0 1,830.0 11.6% 0.3% 0.5x 4.2x CSG Systems International Inc. United States 21.61 -7% 733.9 833.4 169.3 275.8 752.5 140.0 18.6% 2.2% 1.1x 6.0x Dynamics Research Corporation United States 5.84 -20% 60.4 149.6 0.0 89.1 304.7 29.5 9.7% -10.1% 0.5x 5.1x Information Servic es Group, Inc . United States 1.98 -3% 72.4 112.0 23.5 63.1 192.7 15.4 8.0% 4.5% 0.6x 7.3x Infosys Ltd. India 41.56 -26% 23,745.0 19,361.6 4,341.0 - 7,398.0 2,128.0 28.8% 5.8% 2.6x 9.1x iSoftStone Holdings Limited China 4.33 -48% 246.5 186.8 116.6 54.0 381.1 42.1 11.0% 34.5% 0.5x 4.4x ITS Group France 5.27 -18% 30.6 46.0 - - 122.6 9.2 7.5% 2.6% 0.4x 5.0x NCI, Inc. United States 4.22 -47% 54.6 71.3 0.8 17.5 360.9 18.0 5.0% -28.8% 0.2x 4.0x Osiatis SA France 11.67 -8% 178.5 183.5 36.2 40.7 366.1 31.0 8.5% 10.8% 0.5x 5.9x Wipro Ltd. India 6.47 -25% 15,840.0 14,001.2 3,036.2 1,148.7 6,867.6 1,439.9 21.0% 0.6% 2.0x 9.7x
Adjusted Weighted Average 1.6x 8.0x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.5x)and EBITDA multiples that are 1.0 standard deviations above the mean (9.8x)
Business Process Outsourcing Stock Price Chg % From Equity Ent. Cash & ST. Total LTM LTM Margin LTM LTM Multiples Company Name Headquarters 04/30/13 52WK High Value Value Investments Debt Revenue EBITDA EBITDA Rev Growth EV/Rev EV/EBITDA Communisis plc United Kingdom 0.84 -6% 160.3 191.6 35.0 67.6 373.5 31.1 8.3% 10.3% 0.5x 6.2x Contax Participacoes S.A. Brazil 2.64 -8% 901.4 1,279.7 173.4 538.7 1,766.7 203.7 11.5% 22.4% 0.7x 6.3x Eniro AB Sweden 2.40 -4% 240.9 647.4 30.4 455.5 601.3 150.4 25.0% -9.0% 1.1x 4.3x Exlservic e Holdings, Inc . United States 32.62 -1% 1,066.4 961.6 109.2 4.4 454.3 84.8 18.7% 15.8% 2.1x 11.3x Firstsource Solutions Limited India 0.20 -30% 130.3 150.1 141.2 160.4 502.3 47.2 9.4% 27.1% 0.3x 3.2x Genpac t Lt d. Bermuda 18.60 -5% 4,226.4 4,495.2 480.2 745.7 1,970.3 350.7 17.8% 15.5% 2.3x 12.8x MAXIMUS, Inc. United States 79.69 -2% 2,716.3 2,550.8 167.1 1.7 1,096.8 163.2 14.9% 14.8% 2.3x 15.6x Salmat Ltd. Australia 2.10 -27% 332.7 218.4 219.0 104.6 832.3 99.8 12.0% 17.9% 0.3x 2.2x Serco Group plc United Kingdom 9.62 -5% 4,706.6 5,614.1 322.8 1,268.6 7,985.4 613.4 7.7% 5.7% 0.7x 9.2x Trans Cosmos, Inc. Japan 13.95 -4% 573.9 352.3 361.3 134.0 1,765.9 98.0 5.6% 3.2% 0.2x 3.6x Transcom WorldWide SA Luxembourg 0.12 -18% 135.3 212.0 56.2 106.5 805.9 24.9 3.1% 12.9% 0.3x 8.5x XhXchangi ing PLC UiUnite d KidKingdom 2092.09 -11% 501. 1 414. 7 190. 8 64. 4 1, 086. 2 113. 9 10.5% 2.6% 0.4x 3.6x
Adjusted Weighted Average 1.5x 7.9x
*Calc ulation is market c ap weighted and excludes revenue multiples that are 2.0 standard deviations above the mean (2.6x)and EBITDA multiples that are 1.0 standard deviations above the mean (11.5x)
M&A & INVESTMENT SUMMARY APRIL 2013 41 APRIL SUMMARY TRADING VALUATION INFORMATION
Revenue Multiples Segment Name MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 3.4x 1.7x 5.0x 4.6x Digital Advertising 3.6x 2.4x 4.7x 4.5x Marketing Tec hnology 3.7x 3.0x 3.8x 3.6x Agenc y/Consulting 0.8x 0.8x 1.3x 1.3x Marketing Servic es 10x1.0x 07x0.7x 18x1.8x 09x0.9x Traditional Media 2.4x 2.3x 2.9x 2.6x Technology 2.7x 2.2x 3.2x 3.2x Software 5.0x 3.6x 7.9x 4.2x Communications 2.0x 1.1x 2.6x 2.4x Information 3.1x 2.9x 3.7x 2.3x BiBusiness Serv ices 1.1x 0.6x 3.0x 1.9x
EBITDA Multiples Segment Name MEAN MEDIAN W. AVG ADJ. W. AVG* Digital Media/Commerce 22.1x 11.5x 26.0x 21.5x Digital Advertising 21.1x 14.2x 15.1x 14.8x MkiMarketing Tec hno logy 35.6x 14.7x 21.8x 11.1x Agenc y/Consulting 8.4x 8.5x 9.1x 9.1x Marketing Servic es 12.6x 6.5x 9.7x 9.2x Traditional Media 9.0x 8.5x 10.1x 9.6x Technology 12.3x 9.4x 10.0x 9.8x Software 27.4x 15.4x 32.5x 15.5x Communications 22.8x 11.0x 10.0x 9.8x Information 16.0x 12.1x 13.7x 13.8x Business Services 11.0x 8.1x 19.3x 10.7x
As of close of business on 04/30/13
*Calc ulation is market c ap weighted and exc ludes revenue multiples that are 3 standard deviations above the mean and EBITDA multiples that are 2 standard deviations above the mean
M&A & INVESTMENT SUMMARY APRIL 2013 42 PPLLC INDICES – LTM as of 4/30/13
Digital Media/Commerce Index Performance Agency Index Performance 120 130 • S&P 500 – 13.6% • S&P 500 – 13.6 %
120 110 • Digital Media/ • Agency/Consulting – 19.4% Commerce – 11.2%
110
100
100
90
90 Index Performance (%) Performance Index Index Performance (%) Performance Index
80 80 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13
S&P 500 Digital Media/Commerce S&P 500 Agency
Digital Advertising Index Performance Marketing Services Index Performance 130 120
• S&P 500 – 13.6 % ) • S&P 500 – 13.6 % ) %%
%% 120 • Digital Advertising – 29.1% 110 • Marketing Services – 18.2%
110
100
100
90
90 ( Performance Index Index Performance ( Performance Index
80 80 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13
S&P 500 Digital Advertising S&P 500 Marketing Services
Marketing Technology Traditional Media Index Performance Index Performance 120 145 • S&P 500 – 13.6 % • S&P 500 – 13.6 % )
(%) 130 ee %% 110 • Marketing • Traditional Media – 35.4% Technology – 5.6% 115
100 100
85 90 Performanc Index Index Performance ( Performance Index
70 May-12 JlJul-12 Sep-12 Nov-12 Jan-13 Mar-13 80 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 S&P 500 Traditional Media
S&P 500 Marketing Technology
M&A & INVESTMENT SUMMARY APRIL 2013 43 PPLLC INDICES – LTM as of 4/30/13
Software Communications Index Performance Index Performance 130 120 • S&P 500 – 13.6 % • S&P 500 – 13.6 % 110 120 • Software – 18.3% • Communications – 0.2%
100 110
90
100
80
90
Index Performance (%) Performance Index 70 Index Performance (%) Performance Index
80 60 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13
S&P 500 Software S&P 500 Communications
Technology Index Performance 120 Information & Business Services Index Performance 120 • S&P 500 – 13.6 % ) • S&P 500 – 13.6 %
%% 110 • Technology – 4.1% 110 • Information – 19.3% 100 • Business Services – 12.8%
100 90
80
Index Performance ( Performance Index 90 Index Performance (%) Performance Index
70 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 80 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 S&P 500 Technology S&P 500 Information Business Services
M&A & INVESTMENT SUMMARY APRIL 2013 44 ALL SEGMENTS Strategic Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Strategic Values Disclosed Managed Health Care Associates, Inc. Roper Industries, Inc. $1,000.0 Fisher Communications, Inc. Sinclair Broadcast Group, Inc. 353.9 Ubiquisys Ltd. Cisco Systems, Inc. 310.0 Mediaroom IPTV Ericsson 200.0 GdGoodrea ds, Inc. Amazon.com, Inc. 150. 0 NexGen Storage Fusion-io, Inc. 119.0 Ingenuity Systems, Inc. QIAGEN N.V. 105.0 Mendeley Ltd. Elsevier, Inc. 100.0 BodyMedia Jawbone 100.0 Alti Tata Consultancy Services 97.5 Parse Facebook 85.0 Revera Telecom New Zealand Ltd. 82.7 SGCM Pte. Ltd. Singapore Press Holdings Ltd. 48. 7 Pharmexx GmbH Ashfield In2Focus Limited 35.6 TPACK Altera European Trading Company 34.0 Wavii, Inc. Google, Inc. 30.0 The Garden Productions ITV plc 27.5 Evi Technologies Ltd. Amazon.com, Inc. 26.0 Arkoon Network Security Cassidian CyberSecurity 16.7 Future PLC, Classic Rock and Me tal Hammer TeamRock Ltd. 15.4 F1Soft International Pvt. and F1Soft International Pte. First Global Data Corporation 3.4 Elasitas Technologies Limited (Unnamed) 2.6 Fairmont Broadcasting, W TCS-AM/W RLF-FM and W MMN-AM/WZST-FM Spectrum Radio Group, LLC 1.3 Software Imaging Technology Hancom, Inc. 0.9 QS Quarterhouse Software PNI Digital Media Inc. 0.5
Strategic Undisclosed Asheridge Communications Teleste Corporation - Asian Food Channel Network Scripps Networks Interactive, Inc. - Attitude Digital Digitale.XY2 - Aupeo Panasonic Automotive Systems Company - Backup-Connect International j2 Global Communications, Inc. - BayGroup International Corporate Visions, Inc. - BDFM Publishers Times Media Group Limited - Behavio Google, Inc. - Beijjging Wonder Advertisin g Aegis Media - BidSpotter.co.uk ATG Media Ltd. - BillMonk BillPin - Blimling and Associates Dairy.com -
M&A & INVESTMENT SUMMARY APRIL 2013 45 ALL SEGMENTS Strategic Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Strategic Undisclosed Blue Bison Software Consulting Ignition Technology Group - Blue Dog Solutions eWinery Solutions - BrandWorks One Advertising - Cadee Software KloudNation - ChangeTrack Research Accenture plc - Clearwater Gazette Tampa Tribune, Inc. - CM3 Fino Consulting LLC - Consultech Omnicom Group, Inc. - Data Control Group Qualfon Corporation - Datacom Contact Center Operations Convergys Corporation - Decisioning Solutions Experian plc - Dedicated Media LIN TV Corporation - dFlow BigHand Ltd. - Digi TV Plus Oy DNA Ltd. - Digital Broadcasting Group Alloy Digital - Digital Sandbox Haystax Technology, Inc. - Double Effect B.V. Synechron, Inc. - Down East Books Rowman & Littlefield Publishing Group - EcoMom. com etailz, Inc.- EnCompass Technologies EKA Software Solutions Pvt. Ltd. - End To End Marketing Solutions McCann Worldgroup India - Evolutionary Engineering ANSYS, Inc. - Eziworks Pty Ltd. Solera Holdings, Inc. - Facilita Software Development TestPlant Ltd. - FanTD MGT Sports - FE-DESIGN Group and Archividéo Dassault Systemes - Fekete Associates IHS, Inc. - Fibers.com BlueCotton, Inc. - Fitiquette Myntra.com - FleetJobs.com JobsInLogistics.com - Gidsy GmbH GetYourGuide, Inc. - Global Safety Surveillance Telerx Marketing - Gruner & Jahr Poland Burda Media Polska Sp zoo - Hitit Compu ter Serv ices CRM & Loya lty So lu tions AdAmadeus IT Group SA - Huckstep & Associates Net@Work, Inc. - imedo GmbH Santo Holding (Deutschland) GmbH -
M&A & INVESTMENT SUMMARY APRIL 2013 46 ALL SEGMENTS Strategic Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Strategic Undisclosed Incentivibe Rebellion Media Group Corp. - I-NEW Unified Mobile Solutions Novomatic AG - Infoglide Software Corporation FICO - Innovative Automation, Inc. SI Systems, Inc. - Instapaper, LLC Betaworks - Integrity Internet Consulting C1 Partners - Internet Retail HP TRONIC Zlín, spol. Ltd - inVentiv Health MySTRO Sample Management & Fulfillment J. Knipper & Company - iOnRoad Harman International Industries, Inc. - Iron Pearl PayPal, Inc. - Jetsetter TripAdvisor, Inc. - John Wiley & Sons, General Interest Publishing Program Turner Publishing Company - justONE Ltd. BBDO Worldwide, Inc. - Key2 Consulting Workforce Management Analytics Practice Workforce Insight, Inc. - Layer 7 Technologies CA Technologies - LazyDroid 3CX, Inc. - LonoCloud ViaSat, Inc. - Lucid Appeal OneUp Games, LLC - Mahan Advertising Powers Agency, Inc.- Matter Medium - MergerID and PE-Nexus Intralinks Holdings - Mia Mandalay Digital Group, Inc. - Mobio Technologies, Inc. LX Ventures, Inc. - Monty Program Ab SkySQL Corporation Ab - MyPublisher, Inc. Shutterfly, Inc. - Neev Information Technologies Publicis Groupe S.A. - New Madrid Technologies, Inc. YellowDog Production, LLC - Nolio, Inc. CA Technologies - Oil and Gas Job Search.com Limited CareerBuilder, Inc. - OKIRON Design Pacific Software Publishing, Inc. - Onscope, Trademark Business Thomson CompuMark - Osmeta Facebook - Outdoor First Out Of Home America Inc. - PAParAcce l, Inc. AtiActian Corpora tion - ProgrammableWeb MuleSoft, Inc. - Protect Product Family LANDesk Software -
M&A & INVESTMENT SUMMARY APRIL 2013 47 ALL SEGMENTS Strategic Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Strategic Undisclosed reuseit.com Plow & Hearth, Inc. - RSA Security's Knowledge Based Authentication LexisNexis Risk Solutions - RunMyProcess Fujitsu Limited - Sedna Informatik Bechtle AG - Semantelli Corporation IMS Health, Inc. - SEMphonic, Inc. Ernst & Young LLP - SetLogik ReachForce, Inc. - ShowCase Help/Systems, Inc. - Silect Software BridgeWays, Inc. - SocialWeekend Labs Adknowledge, Inc. - Spaceport.io Facebook - Spectrum Health Network Health Media Network - Sports Net Northwest The Seattle Mariners - Stick Figure Productions Ora.TV - Taylor Woodings FTI Consulting, Inc. - Telegraph Publishing Company The Ogden Newspapers, Inc. - The Daily Buzz Mojo Brands Media, LLC - The DealFlow Report TheStreet.com - The Place Media Global Vision Holdings - The Sewing Studio F+W Media, Inc. - ThinkBinder Echo360 - Time Out Chicago Partners Time Out Group Ltd. - Tippr.com and Groupalicious.com nCrowd, Inc. - TMR Market Research Group 1-800 WE ANSWER - Tomnod DigitalGlobe, Inc. - Transcend United Technologg,ies, LLC AGC Networks, Inc. - Tricycle, Inc. Jeffrey Scott Agency, Inc. - Tripology, Inc. USA Today Travel Media Group - United Computer Sales and Service All Covered, Inc. - UrbanCode, Inc. International Business Machines Corporation - VGFiv Goozex, Inc. - Viecore Federal Systems Division EOIR Technologies - VirtualSharp Software PHD Virtual Technologies, Inc. - W2BI Advan tes t Corpora tion - We Are Hunted Twitter, Inc. - WealthCare Marketplace Alegeus Technologies, LLC -
M&A & INVESTMENT SUMMARY APRIL 2013 48 ALL SEGMENTS Strategic Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Strategic Undisclosed Webdetails Pentaho Corporation - Werkspot.nl HomeAdvisor, Inc. - Xpenser Coupa Software, Inc. - ZEN Entertainment NYX Gaming Group - Zimpel Media-Daten News Aktuell GmbH -
M&A & INVESTMENT SUMMARY APRIL 2013 49 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value Buyout Deals Values Disclosed CompuCom Systems, Inc. Thomas H. Lee Partners $1,100.0 AndersonBrecon Corporation Frazier Healthcare Ventures 308.0 Telular Corporation Avista Capital Partners 253.0 Ipes Limited Silverfleet Capital 76.7 Next Media Broadcasting, TV Broadcasting (Private Investors) 46.7 Buyout Deals Undisclosed CCBR-SYNARC Water Street Healthcare Partners - INEA S.A. Warburg Pincus LLC - Ipsos, Motion Picture Group (Private Investors) - TerraSim, Inc. The Riverside Company - VC/Growth Capital Values Disclosed Sina Weibo Alibaba.com $586.0 Mashery, Inc. Intel Corporation 180.0 Precision for Medicine, Inc. Oak Investment Partners 150.0 Pivotal One General Electric Company 105.0 Acumen Brands, Inc General Atlantic, LLC 83.0 EventBrite T. Rowe Price Associates 60.0 Qunar.com Information Technology Co. Ltd. Baidu, Inc. 57.0 Moonbasa GSR Ventures 55.0 SnapDeal.com eBay Incorporated 50.0 Good Technology, Inc. Kleiner Perkins Caufield & Byers 50.0 FourSquare Silver Lake Partners 41.0 MarketShare Partners LLC FTV Capital 38.0 MuleSoft, Inc. New Enterprise Associates 37.0 Clean Power Finance, Inc. Kleiner Perkins Caufield & Byers 37.0 WorldOne Research Ltd. Deerfield Management Company, L.P. 35.0 GCT Semiconductor, Inc. AnaPass Inc. 30.3 Credit Karma, Inc. Susquehanna Growth Equity LLC 30. 0 Optimizely Benchmark Capital 28.0 RRsat Global Communications Network Ltd. Viola Private Equity 27.8 Booker Software, Inc. Bain Capital, LLC 27.5 MarkLogic Corporation Sequoia Capital 25.0 Silverpop Systems, Inc. Escalate Capital Partners 25.0 Belmont Technology New Enterprise Associates 25.0 DataLogix, Inc. Institutional Venture Partners 25.0 Kingsoft Corporation Limited Tencent Holdings Ltd. 24.6 Auctionata Earlybird Venture Capital GmgH & Co. KG 20.2 Mobly Cisneros Group of Companies 20.0 Attune, Inc. MAS Holdings 20.0 Kik Interactive Foundation Capital 19.5
M&A & INVESTMENT SUMMARY APRIL 2013 50 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Netronome Systems, Inc. Sourcefire, Inc. $19.0 WellTok, Inc. Emergence Capital Partners 18.7 Midokura Co., Ltd. Innovation Network Corp. of Japan 17.3 Vidyo Triangle Peak Partners, LP 17.1 ClickTale, Ltd. Amadeus Capital Partners Limited 17.0 Instart Logic, Inc. Andreessen Horowitz 17.0 Dwolla Corporation Andreessen Horowitz 16.5 Tealium Tenaya Capital 15.6 theScore, Inc. Relay Ventures 15.6 The Football App Earlybird Venture Capital GmgH & Co. KG 15.3 RetailNext, Inc. StarVest Partners 15.0 Kaazing Corporation New Enterprise Associates 15.0 ForgeRock Foundation Capital 15. 0 Treato Ltd. OrbiMed Advisors LLC 14.5 The RealReal.com Interwest Partners 14.0 Zerto RTP Ventures 13.0 Crowdtilt Andreessen Horowitz 12.0 Duda Mobile, Inc. Pitango Venture Capital 10.3 Nettwerk Music Group HBC Investments 10.3 Infer, Inc. Redpoint Ventures 10.0 Leading Smart Holdings WPP Group 10.0 SiSense, Ltd. Battery Ventures 10.0 Deep Information Sciences (Angel Investors) 10.0 zozi Forerunner Ventures 10.0 Collective Bias Updata Partners 10.0 SocialFlow Fairhaven Capital 10.0 Ionic Security, Inc. Kleiner Perkins Caufield & Byers 9.4 NextUC ConnectSolutions LLC 9.2 NetSocket, Inc. ConnectSolutions LLC 9.2 Gainsight Battery Ventures 909.0 Guavus, Inc. The Goldman Sachs Group, Inc. 9.0 Reduxio Carmel Ventures 9.0 SavingStar DCM 9.0 OneHealth Solutions, Inc. Lemhi Ventures, Inc. 9.0 RelayFoods.com (Unnamed Fund Contibuters) 8.3 SignalFuse, Inc. Andreessen Horowitz 8.0 M-Files, Inc. DFJ Esprit 7.7 Direct2Mum Ltd. One Degree Capital Corp. 7.7 Gizmox Ltd. Atlas Venture 7.5 Wandera Bessemer Venture Partners 7.0 GreenBytes, Inc. Generation Investment Management LLP 7.0 ATG Media Ltd. Mobeus Equity Partners LLP 6.8
M&A & INVESTMENT SUMMARY APRIL 2013 51 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed Jusp S.p.A. Vertis SGR SpA $6.0 Sport Ngin El Dorado Ventures 6.0 Upstart Network, Inc. Collaborative Fund 5.9 Nanigans, Inc. Avalon Ventures 5.9 BEBB India Private Limited Accel Partners 5.8 ParElastic Corporation General Catalyst Partners LLC 5.7 Flexiant Limited (Angel Investors) 5.7 Simple.TV New World Ventures, LLC 5.7 FlightCar, Inc. General Catalyst Partners LLC 5.5 Assured Labor, Inc. Capital Índigo S.A.P.I. de C.V 5.5 Abiquo Oxford Capital Partners Limited 5.0 Zyme Solutions, Inc. Susquehanna Growth Equity LLC 5.0 ProcessUnity, Inc. Rose Park Advisors, LLC 505.0 BarkBox, Inc. 500 Startups 5.0 EAT Club, Inc. First Round Capital 5.0 Yodo1, Ltd. SingTel Innov8 5.0 Asthmapolis The Social+Capital Partnership 5.0 Duedil Ltd. Notion Capital 5.0 LSN Mobile Technologies Equity Partners Fund SPC 5.0 Business Insider (Private Investors) 5.0 eTechAces Marketing and Consulting Pvt. Ltd. Info Edge (India) Limited 5.0 Well.ca, Inc. iNovia Capital 4.9 PrePlay, Inc. Trilogy Equity Partners, LLC 4.7 BA Insight Milestone Venture Partners 4.5 Panviva Pty. Ltd. SBI Ven Capital 4.2 3Scale Networks, S.L. Costanoa Venture Capital 4.2 Tango Card, Inc. Allegro Ventures 4.1 Verivo Software Ascent Venture Partners 4.0 Songza.com (Unnamed Fund Contibuters) 3.8 Playdek, Inc. QUALCOMM Ventures 383.8 Zonoff, Inc. Valhalla Partners, L.P. 3.8 Kreditech SSL Holding GmbH (Private Investors) 3.5 Bypass Mobile, LLC eBay Incorporated 3.5 Nexgate Sierra Ventures 3.5 Kitchensurfing, Inc. Union Square Ventures 3.5 EveryMove, Inc. BlueCross BlueShield Venture Partners 3.5 VoloMetrix, Inc. Shasta Ventures 3.3 GoCardless Ltd. Accel Partners 3.3 GoCardless Ltd. Accel Partners 3.3 Science Exchange O'Reilly AlphaTech Ventures, LLC 3.0 appsFreedom Grayhawk Venture Partners 3.0 Adapx, Inc. OVP Venture Partners 3.0
M&A & INVESTMENT SUMMARY APRIL 2013 52 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed WhisperText, LLC Lightspeed Venture Partners $3.0 Bitbar CREATHOR VENTURE Management GmbH 3.0 Wemo Media, Inc. Spiegel Capital Management 2.5 DailyLook.com GRP Partners 2.5 Swifto, Inc. Benchmark Capital 2.5 Moonfrye, Inc. Google Ventures 2.5 Screach (Unnamed Fund Contibuters) 2.5 Placester, Inc. Romulus Capital 2.5 Bitium, Inc. Resolute.vc 2.4 High Fidelity, Inc. (Unnamed Fund Contibuters) 2.4 Plain Vanilla Corporation Greycroft LLC 2.4 Apps Foundry Pte Ltd. Kompas Gramedia 2.4 Dynamic Yield Bessemer Venture Partners 202.0 CloudCheckr, Inc. Garrison Investment Group, L.P. 2.0 Chirpify, Inc. Voyager Capital 2.0 Proximal Data Divergent Ventures, LLC 2.0 Luxola Pte. Ltd. GREE Ventures, Inc. 2.0 Zooz XSeed Capital 2.0 Fusebill OMERS Ventures 2.0 Balanced Andreessen Horowitz 2.0 MokiMobility EPIC Ventures 2.0 Showpad Hummingbird Ventures 2.0 Swipp, Inc. (Unnamed Fund Contibuters) 2.0 Food52, Inc. Bertelsmann Digital Media Investments 2.0 Rocketmiles, Inc. Atlas Venture 2.0 Fashion Project, Inc. Atlas Venture 1.8 Babyshop.com Verdane Capital 1.8 Xeneta AS Creandum 1.6 Lagoa 500 Startups 1.6 Leap2, LLC Dundee Venture Capital 161.6 Mallzee.com (Unnamed Fund Contibuters) 1.6 Bluetrain Mobile Polaris Partners 1.5 Recurious Greylock Management 1.5 Idibon Khosla Ventures 1.4 PICT Forerunner Ventures 1.4 BodeTree Greenline Ventures LLC 1.4 DineInFresh, Inc. ff Venture Capital 1.3 Grand St. First Round Capital 1.3 ElectNext, Inc. Brooklyn Bridge Ventures 1.3 Converse Communications Lough Shore Investments 1.2 MBA & Company MMC Ventures, LLC 1.2 Compstak, Inc. Canaan Partners 1.2
M&A & INVESTMENT SUMMARY APRIL 2013 53 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value VC/Growth Capital Values Disclosed StoryToys Limited Enterprise Ireland $1.2 Bownty SEED Capital 1.1 CrowdMed Andreessen Horowitz 1.1 20Jeans.com Baroda Ventures 1.0 Chewse, Inc. 500 Startups 1.0 BuyReply, Inc. Valar Ventures LP 1.0 Deliv General Catalyst Partners LLC 1.0 DailyWorth.com, Inc. DFJ Gotham Ventures 1.0 MaxTradeIn.com, LLC (Unnamed Fund Contibuters) 1.0 PoachIt, LLC (Angel Investors) 1.0 ToutApp, Inc. 500 Startups 0.9 Seelio, Inc. First Step Fund 0.9 Bespoke Post Warby Parker 090.9 OnePageCRM (Unnamed Fund Contibuters) 0.8 The Hunt (Private Investors) 0.7 Futura Acorp S.L. SODENA 0.7 Walk.By, Inc. Lightbank 0.7 Larky, Inc. North Coast Technology Investors, LP 0.7 SoSocio Brooklyn Ventures 0.6 LevelEleven Detroit Venture Partners, LLC 0.5 Compact Disc India Ltd. Parisocpe Financial Advisors Pvt. Ltd. 0.1 VC/Growth Capital Undisclosed Apigee Corporation In-Q-Tel - BookShout! Ambassador Enterprises, LLC - Close.io SV Angel, LLC - Donuts, Inc. Generation Partners - Expect Labs, Inc. Intel Capital - Field Agent, LLC Five Elms Capital - Kease Audrey Capital - Marketplace Events Stephens Capital Partners - MobiTV, Inc. (Unnamed Fund Contibuters) - Molinare TV & Film Ltd. Saphir Capital Partners SA - Mytonomy, Inc. NewSchools Venture Fund - Nativo, Inc. Greycroft LLC - NaviHealth, Inc. BlueCross BlueShield Venture Partners - NeonLabs, Inc. Mohr, Davidow Ventures - Optimal Blue Serent Capital, L.P. - PubCoder H-FARM - Qubole, Inc. Charles River Ventures - Redlen Technologies In-Q-Tel - Simpleview Inc. Ridgemont Equity Partners -
M&A & INVESTMENT SUMMARY APRIL 2013 54 ALL SEGMENTS Venture/Growth Capital Transactions ($ in Millions) Reported Transaction Target Buyer/Investor Value VC/Growth Capital Undisclosed Skimlinks Ltd. Greycroft LLC - SRCH2, Inc. Horizen Ventures - Vayable, Inc. 500 Startups - ViroCyt, LLC High Country Venture, LLC -
M&A & INVESTMENT SUMMARY APRIL 2013 55 Petsky Prunier: Maximizing Shareholder Value
• Founded in 1999 • Focused on the technology, marketing, media, eCommerce, and healthcare industries • Over 35 focused professionals › Unique combination of investment banking and consulting expertise • New York, Palo Alto, Las Vegas, Chicago, Tampa • Sell-side and private placement close rate is unmatched at our level of deal volume • Deep relationships across a broad spectrum of venture capital and private equity groups, lenders and strategic buyers • Together with strategic consulting firm Winterberry Group, one of the largest industry-specific advisors ppggroviding strategic and transactional services • International reach through our partnership with Altium. Founded more than 20 years ago and privately owned, Altium operates from ten offices across Europe • Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker-dealer
INVESTMENT BANKING STRATEGIC CONSULTING
• Sell-Side Representation • Technology • Strategic Development and Competitive Analysis • Capital Raising and Private • Media Placements • M&A Transaction Due Diligence Support • Marketing and Valuation Analysis • Corporate Divestitures • eCommerce • Acquisition Strategy/Target Identification • M&A Advisory • Healthcare • Publishing and Thought Leadership • Fairness Opinions
M&A & INVESTMENT SUMMARY APRIL 2013 56 Petsky Prunier was Ranked #1 by Bloomberg in 2011-2012 for Mid-Market Internet & Advertising Transactions*
Rank Advisor Deal Count
1 Petsky Prunier LLC 30 2 Nomura Holdings Inc 24 3 GCA Savvian Group Corp 23 4 Goldman Sachs & Co 20 5 Morgan Stanley 19 6 Jordan Edmiston Group 18 7 Jefferies Group Inc. 16 8 China Renaissance Partners 15 8 Sumitomo Mitsui Financial 15 10 JP Morgan 14 10 RBC Capital Markets 14
* Based on number of deals announced in 2011-2012 valued at $500 million or less
More than 50 transactions closed since 2010:
• Ranging from strategic sales and divestitures to private equity recaps to growth, mezzanine, and alternative financings
• Across a broad uni verse of iidndustri es, incl udi ng didiigital adverti si ng and mark eti ng, eCommerce and didiigital media, technology and software, information services, and healthcare
M&A & INVESTMENT SUMMARY APRIL 2013 57 International Partnership with Altium
About Altium International Network
• Altium provides M&A and corporate finance advisory services to companies, private equity firms, and entrepreneurs New York Palo Alto Las Vegas Chicago • European-based, mid-market financial Tampa advisory group, employee-owned and truly independent
• A leading adviser for more than 25 years and from start as the corporate finance arm of private equity investor Apax Partners, has developed into a group that operates across ten iitnternati ona l offices with cooperation partners in USA and China
• In the last five years, has completed +50 technology transactions in 12 different countries
Madrid ManchesterLeeds London Paris Zurich Frankfurt Milan Munich Dubai
M&A & INVESTMENT SUMMARY APRIL 2013 58 REPRESENTATIVE RECENT TRANSACTIONS
has sold a leading digital advertising the largest provider of cloud‐based SaaS a leading multiplatform travel and monetization and shopper marketing a leading provider of digital a ddynami c displ lay medi a an d has sold a real-time behavioral advertising tools for printing signs, labels and tags, lifestyle media company partner for e-commerce retailers a leading provider of in-store and production services to retargeting company along with digital subsidiary a portfolio company of shopper marketing signage to company and publishing digital displays for retailers has been sold to brands and agencies major North American retailers has been acquired by has been acquired by has been sold to has been sold to has been sold to provider of online travel guides for has been sold to top destinations around the world specializing in retail, digital, shopper marketing and consumer a unit of a subsidiary of to services to with financing from (NSYE: ACN) (NSYE: AOL) (JASDAQ:4755) (NYSE: LXK ) (NYSE: GCI )
a leading provider of has sold a leading digital direct marketing a leader in global healthcare transportation-based digital company utilizing a proprietary has sold its a leader in technology and global primary market research and the top independent media networks database to provide customer a provider of a cloud-based in-app advertising for Facebook, influence network mapping direct-to-consumer marketer of acquisition solutions for major brands integration platform for the digital has received a mezzanine debt Sports Marketing Print Apple (iOS), and Android a leader in multichannel retail, dental savings plans and marketing industry has been sold to investment from has received an equity investment from developers ecommerce and loyalty marketing Division has been sold to has received $15M financing led services a leading provider of services for to has received $66M investment by has been sold to domain name registration, from a portfolio company of acquisition, brokerage and sales with debt financing from to
has sold has sold has been sold to has sold (Nasdaq: TREE) a leading provider of taxi-based has sold has sold a leading advertising outdoor media has acquired A leading urban and technology company a global digital marketing agency multicultural agency has been sold to has been sold to a leading provider of integrated to a premier provider a leading market services a leading online lead a unit of data, technology and analytics of affinity programs for and BPO company generation business solutions universities and colleges a pioneer in measuring the to to a subsidiary of a leading data management and to impact of promotion on to audience optimization platform (NYSE: PAY) physician prescribing behavior (Xetra: DPW.DE) (DMP) company (NasdaqGS: LEDR) (NYSE: IPG)
(TSX: PTO) has merged with a portfolio company of one of North America’s largest a leading online video a digital communications agency has received a majority has been sold to Vestar Capital Partners mobile marketing and gateway advertising network with a proprietary software investment from has sold solution providers a provider of multichannel platform serving has received a growth capital marketing software services and has been sold to biopharmaceutical companies has been sold to investment from has been sold to to has been sold to a portfolio company of a portfolio company of (Nasdaq:GSIC) Parthenon Capital Partners KRG Capital Partners (d(Nasdaq: RRD )
New Digital Group
has sold a division of a leading performance-based (NASDAQ: TREE) a global marketing services has acquired certain assets of advertising network has sold the company assets of a premier provider of benchmark- has been acquired by a portfolio company of based advisory services to the has been sold to a leading online community for has been sold to pharmaceutical and biotech automotive enthusiasts industry and social networking an interactive direct marketing has acquired technology platform company specializing in to in a combination that creates ldlead generat ion for t hfhe for-profit, has been acquired by to has divested one of its the world’s leading loyalty post-secondary education market marketing services divisions management provider
M&A & INVESTMENT SUMMARY APRIL 2013 59