November 2016
Piper Jaffray Software Activity Update November 2016
Michael Kim Marc Steifman Co-Head of Technology Co-Head of Technology Investment Banking Investment Banking
MINNEAPOLIS | BOSTON | CHICAGO | HOUSTON | LONDON | LOS ANGELES | NEW YORK | SAN FRANCISCO | ZURICH Piper Jaffray Software Team Overview Global Reach Domestic Expertise Technology Team Michael Kim Co-Head of Technology Investment Banking Application Software [email protected]
Marc Steifman Co-Head of Technology Investment Banking Infrastructure & Security Software [email protected]
Garin Arevian Managing Director Technology Office Locations: Vertical Applications & Tech-Enabled Services San Francisco, CA Minneapolis, MN [email protected] New York, NY Boston, MA Jason Harkness Our firm consists of 1,200+ professionals in Managing Director 25 investment bankers focused 59 offices globally including Minneapolis (HQ), Digital Media and Related Software on Software, Financial Technology, [email protected] San Francisco, Charlotte, New York, Chicago, Tech-Enabled Services, BPO and Seattle, Boston, Aberdeen, London, Michael Hirsch Internet & Digital Media Managing Director Hong Kong and Zurich Digital Media and Related Software [email protected]
Andy Livadariu Recent Transactions Managing Director Application Software [email protected] $107,036,250 Undisclosed $329,906,250 $77,280,000 $105,000,000 Undisclosed Jason Myler has acquired has been acquired by Managing Director Initial Public Senior & Follow-On Offering Follow-On Offering Subordinated Debt Vertical Applications & Tech-Enabled Services Offering Offering [email protected] Lead Bookrunner Buy-Side Advisor Co-Manager Joint Bookrunner Sole Agent Sell-Side Advisor Steven Schmidt Managing Director Undisclosed Undisclosed $115,000,000 Undisclosed $574,000,000 Undisclosed Financial and Application Software [email protected] has received a significant has been sold to investment from has been sold to Follow-On has been sold to Convertible Offering Offering Greg Klancher Exclusive Financial Exclusive Financial Exclusive Financial Principal Lead Manager Advisor Advisor Joint Advisor Co-Manager Advisor Infrastructure & Security Software [email protected] Leading Industry Conferences and Events
Technology Growth Equity Summit September 2017 | New York, NY
• 50+ leading privately held software and internet companies • 100+ leading technology growth equity and strategic investors • 500+ one-on-one meetings between attending CEO's/CFO's and investors
Silicon Valley Technology Technology Ski Summit Crossover Investor Summit January 10–13, 2017 | Aspen, CO May 18, 2017 | Menlo Park, CA
30 senior representatives from leading software and internet 15 of the highest growth late-stage private technology companies companies, venture capital and private equity firms focused on the will have their own suite at the Rosewood Sand Hill as 15 of the top technology and business services sectors public and crossover investors visit for one-on-one’s.
PIPER JAFFRAY 3 Case Study: CallidusCloud (Nasdaq:CALD) Follow-on Transaction Overview $107,036,250
Company Overview: . CallidusCloud is a global leader in cloud-based sales, marketing, learning and customer experience solutions. Through its leading SaaS platform, CallidusCloud enables its customers to accelerate their “Lead to Money” process with a suite of solutions that identify leads, train personnel, implement territory and quota plans, Follow-on Offering empower sales forces, automate configuration pricing and quoting, manage contracts, streamline sales compensation and capture customer feedback for competitive advantage September 15, 2016 Investment Highlights: Global Coordinator Joint Bookrunner . Large & Growing Market Opportunity –According to IDC, spending on CRM applications will reach $31.7 billion in 2018 with a projected cumulative annual growth rate of 6.9%. MarketsandMarkets estimates the Offering Details learning management systems market will be $7.8 billion in 2018 and customer experience systems to be $7.1 billon Offer Date 9/15/2016 . Market Defining Vision – CallidusCloud is positioned the highest in the leader’s quadrant for ability to execute based on the latest report from Gartner Inc.’s Magic Quadrant for Sales Performance Management. Filing Date 9/13/2016 The Company has earned a number of recognition and a number of awards in 2016 . Breadth & Depth of Platform –CallidusCloud’s end-to-end suite of applications solves various challenges Filing Price $18.90 faced by sales, marketing, learning and customer experience teams, which otherwise would require the purchase and use of multiple and disparate point applications Offer Price $18.25 . Expanding Customer Base – At the time of the transaction, the company had more than 4,800 customers, Shares Filed 4.0mm (0% insider) representing a 21% increase year over year. Of these customers, less than 400 subscribe to more than one product, representing a significant upsell / cross-sell opportunity for the platform within the installed base Upsized to 5.1mm shares alone with 15% overallotment Shares Offered Marketing Highlights: option for 5.865mm shares total . Piper Jaffray acted as the lead left bookrunner and stabilization agent on the transaction . CallidusCloud was the first upsized technology follow-on under a $2bn market cap this year Total Deal Size $107.0mm . The 2-day domestic roadshow included approximately 70 accounts with a mix of 1-on-1 and group meetings Total Shares . The book received early orders, indicating strong demand and ended over 2x oversubscribed on the first day 62,257,616 of marketing. Outstanding . By the end of the second day of marketing, the book was over 6x oversubscribed and the deal was upsized Market Cap $1,173mm from 4.0mm shares to 5.1mm shares to satisfy investor demand . CallidusCloud priced at $18.25/share, or about 84% of its 52-week high compared to an average of 68%. The Use of Proceeds General Corporate Purposes deal had a file-to-offer of -3.44% compared to an average of -14.10% for sub $2bn market cap technology follow-ons this year File-to-Offer (3.4%) . On the first day of trading, CallidusCloud traded up 3.5% with over 10x the 30-day average trading volume, Discount showing high interest and demand from investors post transaction 1-Day Aftermarket 3.5% Performance This case study was prepared by Piper Jaffray Capital Markets and is intended to be provided with the final prospectus dated September 15, 2016 Souces: IDC, MarketsandMarkets, GartnerDealogic, Company Filings, Bloomberg, Capital iQ & Piper Jafray ECM; Piper Jaffray & Co., Member SIPC and NYSE 9/16
PIPER JAFFRAY 4 Recent Software IPO and Follow-On Performance
Recent Software IPOs Recent Technology Follow-ons
Deal Deal Val Current % Current % Pricing Pricing Mkt Cap % Price Offer / Offer / Pricing Deal Val Mkt Cap Deal Val / % Price Offer / Offer / Issuer Value / Mkt Mkt Cap Selling Issuer Mkt Cap Selling Date to Range ($MM) FTO 30-Day Current Date ($MM) ($MM) Mkt Cap FTO 30-Day Current ($MM) Cap ($MM) Shrs ($MM) Shdr 11/1/16 GDS Holdings Ltd Below $193 $941 20% $908 0% (23%) NA (4%) 9/15/16 Callidus Software Inc $107 $1,173 9% $1,063 0% (3.4%) 0% (8%) 10/27/16 BlackLine Inc Above $168 $839 20% $1,179 0% 21% NA 41% 8/16/16 Shopify Inc $330 $3,347 10% $3,528 33% (2.1%) 8% 4% 10/5/16 Coupa Software Inc Above $153 $866 18% $1,265 0% 20% 40% 46% 2/25/16 Sabre Corp $547 $7,659 7% $6,989 100% (1.7%) 1% (9%) 9/22/16 Apptio Inc Above $110 $597 19% $736 0% 14% 25% 20% 2/1/16 Hortonworks Inc $92 $568 16% $559 0% (42.7%) 26% (3%) 9/22/16 Gridsum Holding Inc Above $100 $373 27% $442 0% 13% 23% 14% 9/20/16 Trade Desk Inc Above $97 $688 14% $982 0% 20% 47% 41% 11/13/15 Paycom Software Inc $190 $2,622 7% $2,496 100% (5.0%) (11%) (1%) In 9/15/16 Everbridge Inc $104 $323 32% $410 17% 0% 30% 27% 11/4/15 Sabre Corp $779 $8,290 9% $6,989 100% (2.0%) 2% (15%) Range 9/24/15 Q2 Holdings Inc $111 $999 11% $1,288 78% (13.2%) (3%) 26% 7/28/16 Talend SA Above $109 $503 22% $698 0% 13% 61% 39% China Online In 9/24/15 Paylocity Holding Corp $128 $1,554 8% $1,720 100% (12.9%) 11% 13% 6/9/16 $52 $374 14% $253 0% 0% 3% (33%) Education Group Range 9/24/15 2U Inc $137 $1,559 9% $1,625 11% (11.7%) (32%) 2% 12/9/15 Atlassian Corp plc Above $531 $4,382 12% $2,059 0% 20% 29% 31% 9/16/15 Paycom Software Inc $171 $2,316 7% $2,496 100% (6.5%) 6% 9% 11/18/15 Square Inc Below $279 $2,952 9% $4,183 5% (25%) 37% 32% In 8/5/15 Sabre Corp $510 $7,525 7% $6,989 100% (2.3%) 3% (7%) 11/12/15 Instructure Inc $81 $425 19% $537 0% (6%) 27% 19% Range 7/8/15 Globant SA $114 $963 12% $1,534 100% (7.9%) 10% 57% 6/25/15 Xactly Corp Below $65 $222 29% $409 3% (27%) (16%) 66% SS&C Technologies In 6/18/15 $743 $5,846 13% $6,320 0% 1.6% 6% 1% 6/25/15 AppFolio Inc $86 $388 22% $741 0% (8%) 23% 83% Holdings Range In 6/10/15 CyberArk Software Ltd $344 $2,006 17% $1,781 82% (5.1%) (4%) (13%) 6/18/15 MINDBODY Inc $100 $548 18% $812 0% 0% (11%) 43% Range 6/10/15 TubeMogul Inc $90 $558 16% $514 34% (8.1%) (13%) (11%) 5/20/15 Shopify Inc Above $151 $1,265 12% $3,528 0% 31% 109% 133% 5/20/15 Sabre Corp $718 $7,194 10% $6,989 100% (0.2%) (6%) (4%) In 4/23/15 Apigee Corp $87 $494 18% NM 0% 0% (8%) 2% Range 5/15/15 Paycom Software Inc $290 $2,290 13% $2,496 100% (7.6%) (1%) 15% In 3/5/15 MaxPoint Interactive $75 $294 25% $58 0% 0% (23%) (83%) Range 3/27/15 Globant SA $74 $625 12% $1,534 100% 2.7% 20% 141% 1/22/15 Box Inc Above $201 $1,630 12% $1,989 0% 17% 35% 7% 3/18/15 Zendesk Inc $223 $1,936 12% $2,342 12% (1.1%) 3% 8% In 12/11/14 Workiva Inc $101 $553 18% $629 0% 0% 14% 9% 3/17/15 HubSpot Inc $175 $1,204 15% $2,060 79% (6.2%) 6% 56% Range 12/11/14 New Relic Inc Above $132 $1,059 12% $1,862 0% 21% 47% 55% 3/16/15 Mobileye NV $822 $9,199 9% $8,541 100% 10.6% 14% (7%) 12/11/14 Hortonworks Inc Above $115 $666 17% $559 0% 23% 69% (43%) 3/12/15 Imperva Inc $135 $1,194 11% $1,317 0% (14.2%) 19% 3% In 12/10/14 Momo Inc $248 $2,517 10% $3,878 0% 0% (11%) 62% 3/11/15 CyberArk Software Ltd $235 $1,700 14% $1,781 100% (18.4%) 15% 4% Range In 3/4/15 Callidus Software Inc $69 $738 9% $1,063 0% (9.9%) (2%) 29% 11/5/14 Upland Software Inc $46 $172 27% $150 0% (8%) (7%) (29%) Range 2/26/15 Q2 Holdings Inc $116 $761 15% $1,288 71% (4.7%) 5% 63% 10/8/14 HubSpot Inc Above $144 $759 19% $2,060 0% 25% 47% 131%
Mean $141 $953 19% $1,264 1% 6% 26% 28% Mean $290 $2,953 11% $3,012 64% (7%) 3% 14% Median $109 $597 18% $777 0% 0% 27% 31% Median $175 $1,700 11% $1,781 82% (5%) 3% 3% Source: Dealogic Data as of market close on November 11, 2016 Includes all IPOs and FOs since 2014 greater than $20MM
PIPER JAFFRAY 5 Software Stock Performance Performance in LTM Period and October Period – By Sub-Sector
LTM Performance YTD Performance
8.0% 9.9%
5.8% 7.5%
4.6% 6.8%
SUB-SECTOR SUB-SECTOR
Moderate Growth SaaS 19.2% Moderate Growth SaaS 20.6%
Infrastructure / IT Management 13.5% Contact Center 17.7%
Large-Cap Technology 8.9% Infrastructure / IT Management 14.8%
Contact Center 8.8% Large-Cap Technology 12.5%
HR Outsourcing 6.8% HR Outsourcing 11.8%
Security Software 4.6% Human Capital Management 9.3%
Human Capital Management 2.1% Security Software 6.3%
CRM / Marketing (4.6%) CRM / Marketing (2.4%)
SaaS High Growth (5.3%) SaaS High Growth (2.6%)
BI / Data Analytics (19.8%) BI / Data Analytics (16.8%)
Source: Capital IQ Note: LTM Date between 11/12/16 and 11/11/16. YTD data between 1/4/16 and 11/11/16
PIPER JAFFRAY 6 Comparable Public Software Comps (Valuation Metrics) 2016E EV/REV 2017E EV/REV
Human Capital Management 6.2x Human Capital Management 5.2x SaaS High Growth 5.7x SaaS High Growth 4.8x Large-Cap Technology 4.1x Large-Cap Technology 4.0x Security 4.1x Security 3.6x Infrastructure / IT Management 3.3x Infrastructure / IT Management 3.2x Business Intellgience / Data Analytics 3.3x Business Intellgience / Data Analytics 2.9x CRM / Marketing 3.2x HR Outsourcing 2.9x HR Outsourcing 3.0x Contact Center 2.7x Contact Center 2.9x CRM / Marketing 2.7x Moderate Growth SaaS 2.4x Moderate Growth SaaS 2.1x
0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x
2016E Rev Growth 2017E Rev Growth
Human Capital Management 26.7% Human Capital Management 23.4% SaaS High Growth 26.7% SaaS High Growth 23.2% CRM / Marketing 15.4% CRM / Marketing 16.2% Moderate Growth SaaS 9.2% Business Intellgience / Data Analytics 15.8% Infrastructure / IT Management 8.8% Moderate Growth SaaS 10.7% HR Outsourcing 7.8% Security 10.4% Security 7.5% HR Outsourcing 7.1% Large-Cap Technology 5.8% Contact Center 7.0% Contact Center 3.2% Large-Cap Technology 6.5% Business Intellgience / Data Analytics 2.4% Infrastructure / IT Management 5.3%
0.0% 10.0% 20.0% 30.0% 0.0% 10.0% 20.0% 30.0%
PIPER JAFFRAY 7 Source: Capital IQ SaaS Valuation Framework
EV / 2017E Revenue vs. 2017E Revenue Growth + FCF Margin
10.0x R² = 0.7456
9.0x WDAY TEAM VEEV 8.0x TYL GWRE N NOW ADBE 7.0x PCTY ZEN PAYC SPLK ULTI SHOP 6.0x HUBS TWOU NEWR CRM 5.0x QTWO FLTX CSOD 4.0x BNFT CALD AMBR BOX 3.0x
EV / 2017E Revenue Multiple Revenue EV / 2017E DATA BV LPSN 2.0x ECOM MODN 1.0x SREV MRIN 0.0x 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%
2017E Revenue Growth + FCF Margin
PIPER JAFFRAY 8 Source: Capital IQ as of 10/17/2016, Thomson Reuters, Company Filings *Piper Jaffray estimate using EBITDA as proxy for FCF Best & Worst Performing Software Stocks Top and Bottom 20 LTM Performers
Bottom 20 Performers Top 20 Performers
(50.1%) Tableau Software, Inc. Five9, Inc. 160.1% Amber Road, Inc. (43.6%) Imperva Inc. 157.4% Varonis Systems, Inc. 90.7% (42.8%) eGain Corporation WageWorks, Inc. 73.7% (39.8%) Marin Software Incorporated Insperity, Inc. 64.3% (37.4%) H&R Block, Inc. Tangoe, Inc. 52.4% (36.6%) athenahealth, Inc. Xactly Corporation 52.0%
(36.0%) Parkit Enterprise Inc. LogMeIn, Inc. 39.6% 8x8 Inc. 36.4% (35.2%) FireEye, Inc. RealPage, Inc. 36.2% (31.8%) Benefitfocus, Inc. Barrett Business Services Inc. 36.0% (24.6%) Cegedim SA CommVault Systems, Inc. 34.3% (24.6%) VASCO Data Security International… CyberArk Software, Ltd. 31.7% (23.0%) Paylocity Holding Corporation VMware, Inc. 29.7%
(20.9%) Jive Software, Inc. Micro Focus International plc 27.5% Barracuda Networks, Inc. 26.8% (19.7%) Verint Systems Inc. Software Aktiengesellschaft 26.0% (16.3%) Callidus Software Inc. Symantec Corporation 26.0% Radware Ltd. (13.8%) Datawatch Corporation 25.2% (10.3%) SPS Commerce, Inc. AVG Technologies N.V. 24.2%
Source: Capital IQ Note: LTM Date between 11/12/15 and 11/11/16.
PIPER JAFFRAY 9 Recent Review Transaction Activity Mergers and Acquisitions . Salesforce Acquires Krux for $680M . Criteo Acquires HookLogic for $250M Krux will extend the Salesforce Marketing Cloud’s audience With HookLogic's acquisition, Criteo is adding a complementary segmentation and targeting capabilities to power consumer performance marketing solution to its portfolio, focusing on delivering marketing with even more precision, at scale. In addition, Krux will more value to brand manufacturers and retailers. feed Salesforce Einstein with billions of new signals, enabling . Elecosoft Acquires ICON for $2.93Bn companies to be even smarter about their customers. The acquisition is consistent with Elecosoft's strategy of investment in . Telenor Descartes Systems Group Acquires Appterra for $5.8Bn SaaS technology to grow its customer reach and strengthen its By adding Appterra's technology and services, Descartes customers position as an international provider of innovative, market-leading will have access to broader data integration capabilities for visual software applications. standardizing and automating buy-side and sell-side processes. . Intuit Acquires Bankstream for Undisclosed Amount Equally, Appterra's customers will now join Descartes' logistics community, presenting additional opportunities for trading partners to Bankstream’s strong relationships with financial institutions will help collect and share logistics data earlier in the business process. Intuit's small business and accountant customers save time when accessing bank information and improve how they manage their finances with QuickBooks. IPOs & Follow-Ons Private Placements . Coupa Software Inc., a San Mateo, Calif.-based cloud-based software . EverQuote Inc., a Cambridge, Mass. - based insurance marketplace, platform that helps companies manage spending, achieve cost savings has raised $23 million in Series B funding. Savano Capital Partners led and drive profitability has raised $133.2 million during its IPO and the round, and was joined by Stratim Capital, Oceanic Partners and T priced above the range at $18 a share for the offering. The firm Capital Partners. increased its IPO terms to 7.4 million shares being offered at between $16-$18 per share ( previously was 6.7m shares being offered at $14- . Apttus, a San Mateo, Calif.-based provider of quote-to-cash solutions, $16). has raised $88 million in Series D funding. GII led the round, and was joined by K1, ICONIQ Capital and KIA . Callidus Software Inc., a Dublin, Calif.-based cloud-based sales, marketing and learning software platform priced 5,100,000 shares of its . Everwise, a software platform for talent development, has raised $16 common stock at a price to the public of $18.25 per share. The million in Series B funding. Sequoia Capital led the round, and was company was able to raise $107.0 million during its follow-on offering. joined by return backers Canvas Ventures and Webb Investment Network. The company has offices in San Francisco and New York
Source: Public news release articles
PIPER JAFFRAY 10 Software M&A Activity Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple $60,000 14.0x $53,011 12.0x $50,000 10.5x 10.0x $40,000
7.0x 7.3x $33,046 8.0x $30,000 5.9x 6.1x $23,829 5.6x $22,438 6.0x $18,421 4.2x 4.5x $20,000 5.2x 5.0x $15,304 $13,482 4.0x $12,062 $11,957 $11,740 4.7x $10,000 $9,861 2.0x
$0 0.0x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016
# ofDeals4855484547545049294238
Source: 451 Research Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 11 Public Target M&A Activity in Software Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple $45,000 8.0x $40,761 $40,000 6.7x 7.0x 6.2x $35,000 6.0x 5.3x $30,000 4.9x 5.0x $26,207 4.4x 5.0x $25,000 4.9x 4.0x $20,000 3.1x 3.3x 2.6x 2.6x 3.0x $15,000 $12,690 $11,721 $9,085 2.0x $10,000 $6,967 $6,775 $6,125 $5,807 $5,000 $3,070 $2,957 1.0x
$0 - x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016
# of Deals 7 7 7 8 6 11 10 12 6 18 13
Source: 451 Research Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 12 Private Target M&A Activity in Software Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple $18,000 13.4x 14.0x $16,000 $15,472
$14,000 12.0x $12,251 $12,000 9.3x 10.0x $11,139 $10,000 $8,887 7.3x 7.2x 8.0x 6.5x 6.0x $7,675 $8,000 $6,904 $6,839 5.0x $6,220 $6,700 6.0x 4.6x 4.9x $6,000 $5,287 $5,615 5.0x 4.6x 4.0x $4,000
$2,000 2.0x
$0 - x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016
# ofDeals4148413741434037232425
Source: 451 Research Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 13 Strategic Public Acquirer M&A Activity in Software Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple $40,912 $45,000 10.8x 12.0x 10.0x $40,000 9.1x 10.0x $35,000 $30,000 6.6x 6.4x 8.0x 5.9x $25,000 $19,764 $21,282 4.9x 4.9x $17,689 6.0x $20,000 6.9x $15,000 5.2x $11,302 4.0x $9,583 $8,247 4.7x $10,000 $6,722 $6,348 $7,040 $5,289 2.0x $5,000 $0 0.0x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 # ofDeals3343383540333136242923
Notable Recent Announced Transactions ($ millions)
Acquirer
Target
Announcement 11/2/15 4/28/16 5/18/16 6/1/16 6/12/16 6/13/16 7/28/16 Date
Deal Amount $1,100 $663 $871 $2,800 $4,650 $26,200 $9,300
EV / LTM REV 2.6x 7.2x 4.0x 11.0x 7.8x 8.2x 10.8x
Source: 451 Research Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 14 Private Equity M&A Activity in Software Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Average EV / REV Multiple
$14,000 8.0x 9.0x $12,000 $11,434 8.0x $9,543 7.0x $10,000 $7,827 6.0x $8,000 4.6x 3.8x 5.0x $3,982 3.6x $6,000 $4,795 $5,478 4.0x 3.7x 4.3x 4.3x $3,600 $3,388 $2,870 3.0x $4,000 $2,360 3.1x 3.0x 2.0x $2,000 1.7x $732 1.0x $0 -x - x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016
# of Deals 8 7 6 5 5 12 9 8 5 10 7
Notable Recent Announced Transactions ($ millions)
Acquirer
Target
Announced 4/30/15 4/18/16 5/31 6/1/16 6/7/16 7/13/16 8/31/16 9/7/16 Date
Deal Amount $438 $1,650 $,790 $509 $3,000 $544 $1,400 $2,200
EV / LTM REV 3.2x 8.0x 7.9x 3.5x 4.2x 4.4x 3.3x 6.8x
Source: 451 Research Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 15 Private Placement Activity Software Private VC / PE Summary: Q1 2014 – Q3 2016
( USD in millions) Total Deal Value Total # of Deals $7,000 180 164 161 $5,883 151 160 $6,000 145 143 143 133 133 140 121 $5,000 136 $4,963 112 $4,337 120
$4,000 100 $3,320 $3,306 $3,000 $2,810 $2,695 80 $2,111 $2,097 60 $2,000 $1,589 $1,407 40 $1,000 20
$0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016
Source: 451 Research Note: Software transactions greater than 10 million USD in enterprise value
PIPER JAFFRAY 16 Appendix LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev The interactive entertainment technology business and related trademarks of Micoy Corporation, which provides an omni- 10/31/16 Digital Domain Holdings Inc. Micoy Corporation (IP assets) $5.5 NA NA directional 3D rendering toolkit software for creating 360 degree stereoscopic environments in the entertainment sector. Provides on-premise and cloud-based multi-channel contact center software to the travel, healthcare, insurance, 10/28/16 Enghouse Systems Limited Presence Technology SL [Valora Corporation] $13.0 $9.9 1.3x banking, government, retail and education industries globally. 10/27/16 Aspen Technology Inc. Mtelligence Corporation [dba Mtell] Provides industrial equipment prescriptive maintenance and related analytics software and SaaS for businesses. $37.4 NA NA LDC (Managers) Limited/Mitrefinch Provides time and attendance, payroll, attendance and workforce management software and SaaS for private and public 10/25/16 Mitrefinch Ltd. $24.5 $20.1 1.2x mana gement businesses. 10/24/16 Enea AB Qosmos SA Provides IP traffic classification and network intelligence software used in physical, SDN and NFV architectures. $57.8 NA NA
10/21/16 Playtech plc ECM Systems Provides game management software and systems for the retail bingo gaming markets in the UK and Ireland. $18.3 $12.2 1.5x
10/20/16 Proofpoint Inc. [NASDAQ: PFPT] FireLayers Provides cloud application control (CAC) software for enterprises. $55.0 NA NA
10/13/16 Descartes Systems Group Inc. Appterra Inc. Provides supply chain relationship management and trading partner collaboration SaaS for businesses. $5.8 NA NA Provides cloud-based third-party access control SaaS to IT businesses, enabling access to applications that are hosted 10/04/16 Akamai Technologies Inc. Soha Systems [fka BubblewrApp] $60.0 $2.0 30.0x in data centers and to Microsoft SharePoint on enterprise networks. 10/04/16 Criteo SA [NASDAQ: CRTO] HookLogic Inc. Provides retail brand and e-commerce online shopping marketing and advertising SaaS for businesses. $250.0 NA NA
10/04/16 salesforce.com Inc. Krux [aka Krux Digital] Provides real-time audience data management and targeting SaaS for marketers, Web publishers and ad agencies. $768.0 $52.0 14.8x
10/04/16 Wolters Kluwer Health Emmi Solutions LLC Provides patient engagement and analytics SaaS for healthcare providers. $170.0 NANA Provides parking software, SaaS and systems that enables parking management, enforcement, permits, collections, 09/29/16 Thoma Bravo LLC T2 Systems Inc. [Pamlico Capital] $180.0 $75.0 2.4x access and revenue control. Provides email and digital subscription management SaaS that enables US government agencies to provide citizens with 09/26/16 Vista Equity Partners Management LLC GovDelivery Inc. $153.0 NA NA information about such topics as local emergencies, events, council minutes and other matters through email, wireless The technology assets of INVeSHARE Inc. which provides embeddable Web-based shareholder communication SaaS to 09/19/16 Broadridge Financial Solutions Inc. INVeSHARE Inc. (technology assets) $135.0 NA NA brokera ge firms and shareholders. 09/14/16 IRESS Ltd. INET BFA [Media24 [Naspers]] Provides financial data and analysis SaaS enabling businesses in Africa to buy or sell on the Capital Market. $10.4 NA NA Provides healthcare electronic medical records (EMR) electronic information exchange and clinical document 09/12/16 Atos SE Anthelio Healthcare Solutions Inc. [Actis] $275.0 NA NA collaboration SaaS, online patient and doctor portals that enable appointment booking, patient/doctor communications The indirect loan origination solutions division, which provides consumer loan origination and regulatory compliance SaaS 09/08/16 Reynolds and Reynolds Company, The Wolters Kluwer Governance, Risk & Compliance $35.8 NA NA and BPO services for the automotive, watercraft and recreational vehicle dealership industry. 09/07/16 HMS Holdings Corp Essette Provides Micosoft.NET-based care management SaaS and related integration for the healthcare industry. $20.0 NA NA HPE's software business division, which provides systems management, security, content management, application 09/07/16 Micro Focus International plc Hewlett Packard Enterprise (software business division) $8,800.0 $3,087.0 2.9x delivery, and analytic software for enterprises. 09/07/16 TPG Capital Intel Security [fka McAfee] [Intel] Provides network anti-malware and PC security software for consumers and enterprises worldwide. $4,200.0 NA NA Provides endpoint data protection, multi-factor authentication, virtual smart cards, access control and anti-malware 09/01/16 ESW Capital LLC Wave Systems Corporation $6.9 NA NA software for enterprises. Ecom Access' digital marketing services provide campaign management, analytics and data management, and 09/01/16 Paysafe Group Plc. Ecom Access (digital marketing assets) $30.0 NA NA commission payments. Software includes payment systems, tracking and reporting, fraud monitoring, and customized Provides credit assessment software systems, in addition to outsourced finance processing services to the finance and 09/01/16 Tieto [fka TietoEnator Oyj] Emric AB [MBO] $35.1 NA NA leasing industry in the Nordic region. 09/01/16 Ve Interactive Ltd. Optomaton Provides proprietary demand-side video advertising SaaS for online marketers. $5.7 NA NA
08/31/16 Blackhawk Network Holdings Inc. Grass Roots Group Holdings Ltd. Provides customer and employee engagement CRM software and digital marketing services for businesses globally. $118.1 NA NA Genesys Telecommunications Provides VoIP, unified communications, PBX and call center management software and software-as-a-service (SaaS) for 08/31/16 Interactive Intelligence Inc. $1,394.3 $410.1 3.4x Laboratories businesses globally.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 18 LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev Provides business intelligence (BI) and e-commerce marketing SaaS for brands, corporations, and retailers in North 08/25/16 Ascential PLC One Click Retail $44.0 NA NA America, Europe and Asia. 08/25/16 Clavister AB PhenixID AB Provides identity and access management software and services for businesses. $7.6 NA NA Return Path's EFP business unit, which provides standards-based DMARC authentication and proprietary sender- 08/24/16 Proofpoint, Inc. Return Path - Email Fraud Protection Division $18.0 NA NA analysis SaaS for enterprise email systems. Also provides managed services which include. Provides practice management SaaS for physicians. Software includes application capabilities for practitioner qualification 08/09/16 Echo Inc. [HealthStream Inc.] Morrisey Associates Inc. $48.0 NA NA credentialing, billing, resident data tracking, peer reviews, and performance management. Provides process and performance improvement patient survey SaaS, report generation and management and a 08/09/16 EQT AB [fka EQT Holdings] Press Ganey Associates Inc. $2,350.0 $344.3 6.8x national comparative online database for the healthcare industry. Also provides healthcare-related patient care Provides underwriting and document processing, and related analytics SaaS for businesses in the property and casualty 08/04/16 Guidewire Software Inc. FirstBest Systems Inc. $34.0 NA NA insurance sectors. Provides digital marketing analytics and advertising management SaaS to enable targeted marketing and advertising 08/03/16 Vector Capital Sizmek Inc. $85.2 $185.2 0.5x across social media, Web, display ads and mobile devices, for media marketers and businesses. MYOB Technology Pty Ltd. [Bain 08/01/16 Greentree International Limited Provides ERP, CRM, SCM and BI software and SaaS for businesses globally. $20.2 NA NA Ca pital] Provides project and portfolio management (PPM), application portfolio management (APM) and predictive portfolio 08/01/16 Planview Inc. [Insight Venture Partners] Innotas Inc. $80.0 $15.0 5.3x analysis (PPA) SaaS for the healthcare, government, education and commercial sectors. Provides game management software for the electronic gaming machine sector in Australia. Also provides related 08/01/16 Tabcorp Holdings Limited INTECQ Limited $86.5 NA NA customer monitoring and tracking software. 07/28/16 Nemetschek AG Design Data Corporation Provides steel modeling and fabrication software and SaaS for the construction and engineering sectors. $46.4 $10.0 4.6x Provides financial management and planning, ERP, e-commerce, CRM, SCM, and business intelligence (BI) analytics 07/28/16 Oracle Corporation NetSuite Inc. $9,173.8 $846.4 10.8x software as a service (SaaS) for businesses globally. Riverbed Technology Inc. [Thoma Provides end user experience management SaaS and mobile APM software tools, enabling the monitoring of applications 07/28/16 Aternity [fka Gelion Networks] $55.0 $30.0 1.8x Bravo] on desktops, mobile devices and in the cloud. Provides Web-based cloud-native application delivery SaaS for enterprises and datacenters utilizing public, private & 07/26/16 A10 Networks Inc. Appcito $6.5 NA NA hybrid cloud environments. Provides enterprise vulnerability assessment and management, penetration testing and attack intelligence and analytics 07/22/16 Core Security Technologies, Inc. Damballa, Inc. $9.0 NA NA software. Monotype Imaging [fka Agfa Monotype Provides marketing automation, customer analytics, and sales management SaaS for retailers. Software enables 07/21/16 Olapic Inc. $130.0 NA NA Corp.] marketers to collect and deliver user generated content (UGC) from various mediums. Nuance Communications Inc. [fka Provides customer engagement and customer analytics SaaS for businesses in the telecom, insurance, finance, travel, 07/21/16 TouchCommerce Inc. $215.0 NA NA ScanSoft ] hospitality and retail sectors. Provides threat detection and response software for businesses that enables security professionals to assess potential 07/19/16 Carbon Black, Inc. Confer Technologies, Inc. NA NA NA vulnerabilities, endpoint integrity and detect advanced threats in real time. Provides gaming terminal management systems and software for the casino, bingo, virtual gaming and sports betting 07/14/16 Hydra Industries Acquisition Corp. Inspired Gaming Group Limited $262.5 NA NA businesses globally. Provides single sign-on (SSO) and password management software, as well as appliance-based authentication and 07/13/16 Thoma Bravo LLC Imprivata Inc. [NYSE: IMPR] $544.0 $125.0 4.4x employee access management systems, for hospitals and healthcare providers. Provides customer purchasing predictive behavior analytics and big data SaaS that uses machine learning to enable 07/11/16 Ebay SalesPredict NA NA NA targeted marketing, lead generation and lead scoring sales and marketing teams. 07/11/16 Lyceum Capital Partners LLP Sabio Ltd. Provides enterprise customer contact center SaaS and related call center managed communications services. $64.7 $53.6 1.2x Provides anti-virus, anti-malware, anti-spam, firewall, mobile device and endpoint security software for consumers and 07/07/16 AVAST Software a.s. AVG Technologies NV [fka Grisoft s.r.o.] [NYSE: AVG] $1,395.4 $433.4 3.2x businesses globally. Provides real-time remote highway traffic control, monitoring and management systems, including Bluetooth-enabled 07/06/16 Costain Group PLC Simulation Systems Ltd. [aka SSL] $22.6 NA NA mobile traffic flow monitoring, motorway control systems, smart motorways, digital CCTV and road message signage, for Kohlberg Kravis Roberts & Co. L.P. [dba 07/05/16 Epicor Software Corporation [Apax Partners] Provides ERP, CRM and SCM software and SaaS for businesses globally. $3,300.0 $1,000.0 3.3x KKR ] Provides student well-being predictive analytics and social media analysis and monitoring software and managed services 07/01/16 BigAir Group Limited CyberHound [fka Netbox Blue] $5.2 NA NA that enables schools to monitor student Web activity and intervene in cases of online student cyber-bullying, Provides material handling, automation, logistics and warehouse management software and hardware for the retail, 07/01/16 Honeywell International Intelligrated Inc. $1,500.0 NA NA wholesale, e-commerce, food and beverage, consumer packaged goods, pharmaceutical and medical supply, third-
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 19 LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev Provides power and fuel management, and related analytics software for the maritime shipping and travel sectors 06/30/16 Wartsila Corporation Eniram Ltd. $47.5 $10.9 4.4x globally. Provides access control and anti-data leakage SaaS to enable businesses to secure cloud applications and provide data 06/28/16 Cisco Systems Inc. CloudLock Inc. $293.0 NA NA loss prevention (DLP). Infor Global Solutions [dba Infor] [fka Provides retail predictive analytics SaaS that uses big data to enable retailers and wholesalers to forecast merchandise 06/28/16 Predictix LLC $125.0 NA NA Agilisys Inc.] [Golden Gate Capital] planning, assortment, category management, pricing and supply chain optimization. 06/28/16 Sartorius AG IntelliCyt Corp. Provides immuno-oncology target assay measurement systems for the life sciences sector globally. $90.0 $16.7 5.4x Callidus Software Inc. [dba 06/24/16 Badgeville (certain assets) Certain assets of Badgeville, which provides gamification software for employee and customer training and incentivizing. $7.5 NA NA CallidusCloud ] Icontrol Networks' Connect and Piper business units, which provides smart home automation, remote control and 06/23/16 Alarm.com Inc. [Nasdaq: ALRM] Icontrol Networks Inc. (Connect and Piper business units) $140.0 NA NA security monitoring systems. 06/23/16 Snagajob.com Inc. PeopleMatter Inc. [Reality Wireless Networks] Provides Web-based workforce and risk management measurement, analysis and optimization SaaS to enterprises. $40.0 $15.0 2.7x
06/21/16 KION GROUP AG Dematic Group [AEA Investors LP / Teachers Private CapitaProvides automated logistics systems integration services and related SCM software the manufacturing industry. $3,250.0 $1,800.0 1.8x Francisco Partners/Elliott Management Provides BI analytics and corporate performance management, database management, identity and access 06/20/16 Dell Software Group $2,200.0 $1,363.0 1.6x Corporation management, network security management, endpoint integrity and identity and access management software and Provides process automation and manufacturing plant management software for the industrial processing industry in the 06/20/16 Spectris plc Capstone Technology Corporation $22.5 NA NA energy, paper, mining, food and beverage and chemical sectors. Provides order and related shipping management SaaS that enables online retailers to download, process and ship 06/20/16 Stamps.com Inc. ShippingEasy Inc. [aka Shipping Easy] $55.0 NA NA orders. Provides fashion design and prototyping software, including 2D and 3D clothing and apparel computer-aided design 06/16/16 Electronics for Imaging Inc. [dba EFI] Optitex Ltd. $20.0 NA NA (CAD), 3D computer-aided manufacturing (CAM) and virtual prototyping, for the clothing and textile brands and Substantially all the assets of eSupply Systems, which provides procurement, group purchasing, budgeting and spend 06/16/16 RealPage Inc. eSupply Systems LLC (assets) $7.1 NA NA management SaaS for businesses. 06/13/16 Microsoft Corporation LinkedIn Corporation Provides a social networking website for professionals and businesses globally. $26,190.9 $3,233.4 8.1x Provides security and operations management software and SaaS for software defined data centers (SDDC). Also 06/13/16 VMware, Inc. Arkin Net Inc. NA NA NA provides related analytics software. Provides enterprise cybersecurity, Web traffic management and mobile device security systems and software as a 06/12/16 Symantec Corporation Blue Coat Systems Inc. [Bain Capital] $4,650.0 $598.3 7.8x service (SaaS) for businesses globally. Hardware and software provide features for Web content filtering, anti-data Provides mental healthcare billing and revenue cycle management SaaS and outsourced services, as well as financial 06/09/16 Inspira Financial Inc. RBP Healthcare Technologies $8.5 NA NA and clinical performance management and health records (EHR) SaaS, for mental health and substance abuse out- 06/07/16 Fortinet Inc. [NASDAQ: FTNT] AccelOps Inc. [fka ProspectHills, Inc.] Provides hybrid on-premises and hosted data center, and cloud monitoring software and SaaS for businesses. $28.0 $6.0 4.7x Provides supply chain management (SCM) software, SaaS and related integration services to the chemical and oil 06/07/16 Thoma Bravo LLC Elemica Inc. $175.0 $50.0 3.5x industries globally. 06/07/16 Fortinet Inc. AccelOps, Inc. Provides hybrid on-premises and hosted data center, and cloud monitoring software and SaaS for businesses. $28.0 $6.0 4.7x Provides on-premise and cloud-based business intelligence (BI) analytics and reporting software for businesses, 06/02/16 Thoma Bravo LLC QlikTech Inc. [dba Qlik] $2,614.9 $637.8 4.1x government agencies and educational institutions globally. Provides enterprise cloud-based e-commerce SaaS for Web merchants and multi-channel online retailers. Software 06/01/16 salesforce.com Inc. [dba Salesforce] Demandware Inc. $2,800.0 $254.1 11.0x includes features for order management, multiple e-commerce site creation and maintenance and mobile transaction SolarWinds Inc. [Silver Lake Provides Web-based IT service management (ITSM) SaaS for managed service providers and IT support businesses 06/01/16 LOGICnow Ltd. $500.0 $80.0 6.3x Partners/Thoma Bravo] globally. Software integrates features including remote monitoring, mail security, backup and recovery and IT service Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and authentication SaaS. 06/01/16 Vista Equity Partners Ping Identity Corporation [fka Next Identity Corporation] $600.0 NA NA Software enables an organization's employees to use a single sign-on (SSO) to securely access Internet applications and Provides procurement, SCM, contract and inventory management, and accounts payable automation SaaS for the 05/31/16 Accel-KKR Company SciQuest Inc. $373.0 $106.3 3.5x scientific , education, healthcare and government sectors. Provides marketing automation SaaS for businesses. Software provides features for sales lead management and 05/31/16 Vista Equity Partners Marketo [NASDAQ:MKTO] $1,790.0 $226.1 7.9x analytics, email and social media marketing, and marketing campaign analytics. Marketo began trading on the NASDAQ Wolters Kluwer Legal & Regulatory Provides operational risk management, environmental, health, safety, and sustainability processes (EHS&S) and energy 05/31/16 Enablon $277.8 $49.2 5.6x Solutions [fka Wolters Kluwer Law & and carbon management SaaS, software and systems integration for companies and enterprises in over 160 countries.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 20 LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev 505 Games' PAYDAY 2 and PAYDAY for mobile videogame franchise, which develops and provides console, PC, online 05/30/16 Starbreeze Studios AB 505 Games S.r.l. [Digital Bros. S.p.A] (PAYDAY 2 videogame $30.0 NA NA and mobile first-person shooter videogames for consumers globally. Tech Mahindra Ltd. [fka Mahindra- Provides loan and mortgage management software, insurance policy administration software, and related outsourced 05/27/16 Target Group Limited $164.1 $75.6 2.2x British] services for the financial and insurance sectors globally. Provides application program interfaces (API) and software development kits (SDK) PaaS to enable voice, text, chat 05/18/16 Vonage Holdings Nexmo $230.0 $70.0 3.3x application and phone verification services for enterprises and developers globally.... Hexis Cyber Solutions' HawkEye G division which provides behavior-based threat detection, verification and automated 05/18/16 WatchGuard Technologies, Inc. Hexis Cyber Solutions, Inc., Hexis HawkEye G NA NA NA machine-guided containment of zero-day and unknown malware variants for organizations and government Provides predictive dialing, IVR and analytics call center SaaS and related integration services for call center operators 05/18/16 NICE Systems Ltd. inContact Inc. $937.4 $233.0 4.0x globally. Vista Equity Partners; Vista Equity Provides enterprise Identity-as-a-Service (IDaaS), including identity and access management and authentication SaaS. 05/18/16 Ping Identity Corporation NA NA NA Partners Fund VI, L.P. Software enables an organization's employees to use a single sign-on (SSO) to securely access Internet applications and Certain assets of D-Vasive, which provides Android mobile device and PC-based anti-spy applications and software for 05/09/16 MGT Capital Investments Inc. D-Vasive Be Free [dba D-Vasive] (assets) $9.0 NA NA consumers and businesses. Software enables protection against malicious and invasive use of a device's camera, Provides cloud-based utility and energy management SaaS for power suppliers. Software enables the analysis of smart 05/02/16 Oracle Corporation Opower Inc. $532.0 $148.7 3.6x meter reading and analytics for demand side power optimization, customer engagement and billing automation and Web Provides enterprise healthcare data analytics software and services that enable revenue management, claim and 04/25/16 Veritas Capital Verisk Health [Verisk Analytics Inc.] $820.0 $307.3 2.7x payment accuracy, fraud protection, population health predictive big data analytics, risk assessment, compliance, and Teradata's marketing applications business, which provides omni-channel marketing and advertising resource and data 04/22/16 Marlin Equity Partners LLC Teradata Corporation (marketing applications business) $90.0 $152.0 0.6x management SaaS and services for companies and marketing agencies. Provides secure identification, identity management, fraud detection and illegal substance detection hardware and 04/21/16 Smiths Group plc Morpho Detection Inc. [Safran Group] $710.0 $320.0 2.2x software, as well as secure e-document smartcards and related software, for a variety of businesses, telecoms and Provides enterprise consumer identity management, identity theft protection and fraud detection software, including 04/19/16 Experian plc [aka Experian Group Ltd.] CSIdentity Corporation [dba CSID] $360.0 $103.0 3.5x credit monitoring, identity authentication, voice biometrics and breach mitigation and resolution. Provides property management and residential sales management software and SaaS, including inventory management, 04/19/16 Zoopla Property Group PLC Property Software Group, The $106.5 $22.9 4.7x marketing, CRM communications, accounting and business reporting, for real estate agents and agencies. In December Provides insurance policy management, underwriting, billing and rating software and SaaS for property and casualty 04/18/16 Apax Partners LLP Duck Creek Technologies [Accenture Ltd.] $600.0 $150.0 4.0x insurers businesses and processors. The HP TeamSite, HP MediaBin, HP Qfiniti, HP Explore, HP Aurasma, and HP Optimost software and service assets of 04/18/16 OpenText Corporation [aka Open Text] Hewlett-Packard Company [dba HP Inc.] (customer experie $170.0 NA NA HP, which enable customer service automation, Web content and digital asset management, and contact center Provides event planning management SaaS for businesses globally. Software provides features for event registration, 04/18/16 Vista Equity Partners Cvent Inc. $1,413.0 $199.0 7.1x email marketing, payment processing, budget management and Web design. Also provides online survey creation and Provides customer experience management, including Web content management, website analytics, search engine 04/17/16 EQT Sitecore $1,131.0 $218.5 5.2x optimization and email marketing software and SaaS for businesses globally.... Provides real-time IT security threat detection, automated incident response and analytics reporting software, available 04/15/16 Alert Logic, Inc. Click Security, Inc. NA NA NA either on premises or in a hosted environment Provides machine-learning based cross-device user identification tracking SaaS for the purposes of marketing for ad tech 04/14/16 Oracle Corporation Crosswise Ltd. $50.0 $1.5 33.3x vendors, consumer brands and Web publishers. Software maps individual consumers across connected devices such as Provides hybrid cloud application management software to enable migration, governance and management of 04/05/16 ServiceNow Inc. ITapp Corporation $15.0 $2.0 7.5x applications from on-premises, cloud or hybrid cloud environments. Software enables application on-boarding, testing Provides interactive online and mobile casino-style gaming and sports betting software for online and offline gambling 04/04/16 NYX Gaming Group Ltd. OpenBet $387.9 NA NA operators. Software enables users to make bets in multiple languages, currencies and across platforms. 04/01/16 HCL Technologies Ltd. Geometric Ltd. (business assets) The business assets of Geometric, which provides computer aided manufacturing (CAM) software for businesses globally. $193.7 NA NA Senstar Corporation [Magal Security Manufactures and provides video-based security surveillance, intrusion detection, monitoring and video management 04/01/16 Aimetis Corporation $14.0 NA NA S ystems] systems for businesses and government agencies. Software enables license plate recognition, outdoor object tracking, Basware Oyj [aka Basware Provides e-procurement, invoice processing, EDI and purchasing automation software-as-a-service (SaaS) for 03/31/16 Verian Corporation $36.0 $10.5 3.4x Cor poration] businesses. The Medical Director business assets (formerly known as Health Communication Network) of Primary Health Care, which 03/29/16 Affinity Equity Partners Primary Health Care Limited $116.3 NA NA provides healthcare clinical and practice management software, as well as pharmaceutical management and electronic Provides predictive analytics, risk scoring data and pricing and underwriting information SaaS to businesses in the 03/29/16 Guidewire Software Inc. EagleEye Analytics $42.0 NA NA financial services and property & casualty insurance industries. China Distance Education Holdings Provides accounting professional training course software, as well as teaching simulation software, for colleges and 03/28/16 Xiamen NetinNet Software Co. Ltd. $32.6 NA NA Limited college students in China.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 21 LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev Provides cloud infrastructure provisioning SaaS and software-defined infrastructure-as-a-service (IaaS) that enables 03/24/16 Intralinks Holdings Inc. [dba Intralinks] Verilume Inc. $6.4 NA NA enterprises and managed service providers (MSPs) to deploy, manage and provision distributed data centers and private Allscripts Healthcare Solutions/ GI Provides medical practice, pharmacy and electronic healthcare records (EHR) management software and software as-a- 03/23/16 Netsmart Technologies Inc. [Genstar Capital] $950.0 NA NA Partners service (SaaS) for healthcare providers and related government agencies. Gaming Innovation Group Inc. [fka NIO Provides B2B sports betting statistical modeling and analysis software that enables sports betting businesses to predict 03/22/16 OddsModel AS $8.9 NA NA Inc. ] the probability of sports events, provide automated bet pricing and enables betting risk management. Asure Software Inc. [fka Forgent Provides employee recruitment, benefits, payroll, tax and workforce management software-as-a-service (SaaS) for 03/21/16 Mangrove Software $17.3 $6.0 2.9x Networks ] businesses. Provides construction management SaaS, including project, bid and financial management and performance monitoring 03/17/16 Aconex Ltd. [ASX:ACX] CONJECT Holding GmbH $71.8 $26.3 2.7x software, for the commercial real estate construction industry globally. Ali Fortune Investment Holding Limited Provides lottery and gaming software, systems, terminals and related EDI services for businesses, consumers and 03/06/16 AGTech Holdings Ltd. $307.2 $34.4 8.9x [Alibaba Group Holding Ltd.] government agencies in China. The key opinion leader (KOL) business and products known as Qforma CrowdLink, which provides online opinion leader 03/03/16 Veeva Systems Inc. Qforma Inc. $9.8 NA NA social analytics and customer market intelligence and related healthcare big data analytics and research SaaS and Provides electronic surveillance systems, RFID tags, anti-theft management software, and fire alarm systems for 03/02/16 CCL Industries Inc. Checkpoint Systems Inc. $411.9 $607.4 0.7x businesses globally. Provides hybrid cloud application management software to enable migration, governance and management of 03/01/16 Cisco Systems Inc. CliQr Technologies $260.0 NA NA applications from on-premises, cloud or hybrid cloud (public and private) environments for businesses. Software enables Provides sensor-based video monitoring systems for businesses and consumers globally. Systems transmit data via 3G 03/01/16 Honeywell International RSI Video Technologies Inc. [dba Videofied] $123.0 NA NA and 4G cellular service, and via Ethernet connections. Provides insurance risk assessment and actuarial analytics software and SaaS that enables pricing, valuation, modeling 03/01/16 Moodys Corporation GGY [dba GGY AXIS] $86.9 $28.0 3.1x of insurance and annuity products, asset liability management, risk analytics and financial reporting, for life insurance Provides cybersecurity incident response management SaaS that enables enterprise security teams to automate, 02/29/16 IBM Corporation Resilient Systems Inc. $145.0 $10.0 14.5x orchestrate, analyze and mitigate IT security incidents such as malware and DDoS attacks. Provides windows-based endpoint security, application control, password management and desktop compliance 02/23/16 Thycotic Software Ltd. Arellia Corporation NA NA NA software for enterprises utilizing the altiris/symantec mangement platform Provides desktop, Web-based and mobile inbound call and Web chat-based customer service automation software for 02/22/16 Verint Systems Inc. Contact Solutions LLC $66.9 $47.0 1.4x business and government agency call centers. 02/18/16 Cross River Advisors LLC ValidSoft Limited [ElephantTalk Communications] Provides transaction verification and authentication software for anti-fraud purposes for businesses. $12.5 NA NA Provides in-vehicle driver behavior video recording systems, as well as related driver behavior coaching, fleet tracking and 02/18/16 GTCR LLC Lytx Inc. [fka DriveCam Inc.] $500.0 NA NA fuel management SaaS, for commercial and public sector transportation fleet operators. Software enables driver safety Provides data analytics and corporate performance management SaaS and services for healthcare providers, employers 02/18/16 IBM Corporation Truven Health Analytics Inc. [Veritas Capital] $2,600.0 $598.9 4.3x and health plans, government entities and life sciences businesses. Truven was formerly the healthcare business division Provides SMS-based multi-factor authentication software for enterprises, telecommunications carriers and government 02/17/16 Censornet Ltd. SMS Passcode A/S NA NA NA agencies globally. Software enables authorized user network remote systems access... ID Global Solutions Corporation [fka IIM Operates as a holding company for ID Solutions, which provides biometric-based fingerprinting software for financial 02/16/16 FIN Holdings Inc. $9.0 NA NA Global Corporation] institutions, and Cards Plus SA which provides secure membership ID, loyalty and gift cards, card printing hardware and Protection One Inc. [dba Protection 1] Provides home security, access control and video surveillance systems and services for businesses, consumers and 02/16/16 ADT Corporation [NYSE:ADT] $12,269.1 $3,587.0 3.4x [Apollo Global Management] government agencies globally. ADT Corporation began trading on the NYSE under the ticker symbol ADT on October 1, Provides food label analytics and market intelligence SaaS for government entities, retailers, manufacturers and app 02/11/16 KPMG LLP Label Insight Inc. $10.0 NA NA developers. Analysis includes allergens, additives, ingredients, claim analysis and product photos. Provides call center management and performance optimization SaaS for businesses. Software also enables related 02/08/16 BroadSoft Inc. [NASDAQ: BSFT] Transera Communications Inc. $19.8 $8.0 2.5x customer service automation and customer analytics. Provides enterprise threat intelligence data aggregation and collaboration SaaS for businesses. Software enables the 02/08/16 Infoblox Inc. IID [fka Internet Identity] $45.0 NA NA exchange, analysis and translation into machine-readable threat intelligence (MRTI) of curated threat data from multiple Provides enterprise IT security vulnerability assessment, change management and firewall and compliance auditing SaaS 02/03/16 Providence Equity Partners Inc. Skybox Security Inc. $96.0 NA NA for businesses globally. Castleton Technology plc [fka Redstone 02/01/16 Kypera Holdings Limited Provides housing management and transaction processing software for the property management sector in the UK. $5.0 $3.7 1.4x plc] Provides automated threat response, or unified threat management, software and SaaS for use by network security 02/01/16 FireEye Inc. [NASDAQ: FEYE] Invotas International Corporation [fka CSG Invotas] $20.0 NA NA teams in the government, finance, military, energy, healthcare and retail sectors. Provides cross-screen, targeted advertising software, customer analytics and advertising delivery software, and related 02/01/16 Telenor ASA Tapad Inc. $360.0 $57.0 6.3x digital marketing campaign management services for marketers and advertising professionals globally.
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 22 LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev Learning Technologies Group plc [fka In- 01/29/16 Rustici Software Provides standards compliance, content management and collaboration software for E-learning institutions globally. $26.0 $6.6 3.9x Deed Online plc] Provides physical security systems, including access control, intrusion detection, CCTV video surveillance, burglar alarms 01/25/16 Johnson Controls Inc. Tyco International Plc $5,645.0 $9,902.0 0.6x and automated fire suppression systems, for businesses and consumers globally. Also provides home alarm, temperature Provides computational fluid dynamics (CFD)-focused computer aided engineering (CAE) simulation software for 01/25/16 Siemens AG CD-adapco $970.0 $200.0 4.9x automotive, aerospace, energy and marine manufactures globally. Provides cybersecurity threat intelligence, detection and management SaaS for global enterprises and infrastructure 01/20/16 FireEye Inc. [NASDAQ: FEYE] iSIGHT Partners $200.0 $40.0 5.0x providers. Software enables the integration of up-to-date actionable threat intelligence into existing cyber security Cobham's surveillance systems assets, which provides video and audio surveillance systems for businesses and 01/15/16 Marlin Equity Partners LLC Cobham plc (surveillance business assets) $10.0 NA NA government agencies. Surveillance assets are a division of Cobham's Communications and Connectivity business unit. Provides consumer interaction analytics SaaS for enterprises and government agencies. Software enables the analysis 01/11/16 NICE Nexidia $135.0 $50.0 2.7x and conversion of unstructured audio, video, and text-based consumer content for... Provides POS system customer analytics and reporting software, Web hosting and related consulting services for 01/06/16 SPS Commerce Inc. ToolBox Solutions Inc. $21.8 NOTES retailers and consumer packaged goods suppliers in North America. Provides video-based shopper information collection systems, related outsourced reporting services and Web-based 12/22/15 Tyco Retail Solutions ShopperTrak $175.0 $75.0 2.3x customer analytics tracking SaaS 12/21/15 ShoreTel Inc. Corvisa LLC Provides call center, interactive voice response (IVR), SIP trunking and virtual collaborative communications SaaS $8.5 NA NA
12/17/15 CoreLogic Inc FNC Inc. Provides property appraisal and real estate collateral management software $475.0 NA NA The assets of EVault, which provides enterprise data protection, disaster recovery and business continuity, storage and 12/16/15 Carbonite, Inc. EVault, Inc. $14.0 NA NA data retrieval SaaS and appliances for small businesses.... 12/16/15 CVC Capital Partners Limited Kount Inc. Provides fraud detection and related risk management SaaS for e-commerce businesses and payment processors. $80.0 NA NA Provides signature-less online endpoint threat detection and response (ETDR), advanced threat prevention and anti- 12/14/15 Sophos Group plc SurfRight B.V. $32.0 NA NA malware software for consumers and businesses. Software locates, identifies and rem... 12/14/15 Kapsch TrafficCom AG Telvent Trafico y Transporte Provides traffic and tolling management software systems for the transportation industry worldwide. $38.4 NA NA Provides signature-less online endpoint threat detection and response (ETDR), advanced threat prevention and anti- 12/14/15 Sophos Plc SurfRight B.V. $31.8 $5.0 6.4x malware software for consumers and businesses. 12/11/15 Digital Barriers plc Brimtek Inc. Provides physical security, surveillance and monitoring systems for the public sector $25.0 $26.1 1.0x
12/11/15 LookingGlass Cyber Solutions Inc. Cyveillance Inc. Provides open-source Web-based enterprise threat intelligence SaaS solutions $35.0 NA NA Provides real-time e-commerce transaction fraud detection, fraud prevention and identity verification services for online 12/10/15 Transunion Netherlands I B.V. Trustev Limited $44.0 NA NA retailers, financial service providers and travel businesses.... Provides enterprise vulnerability assessment and management, penetration testing and attack intelligence and analytics 12/09/15 Courion Corporation Core Security Technologies Inc. $30.0 NA NA software. Provides contact center management software-as-a-service (SaaS) for businesses. In January 2014, LiveOps 12/01/15 Marlin Equity LiveOps Cloud NA NA NA announced the formation of two separate corporate entities: LiveOps Cloud Platform and LiveO... 11/30/15 EQT Partners AB IFS AB Provides ERP, CRM, EAM and BPM software $1,044.6 $390.2 2.7x
11/30/15 FLIR Systems Inc. DVTEL Inc. Provides physical security surveillance systems and software $92.0 NA NA Provides managed security services, including threat intelligence, forensics, online fraud detection, banking security, 11/24/15 NCC Group (Solutions) Limited Fox-IT Group B.V. $141.0 $30.0 4.7x incident response and auditing services, for businesses, financial institutio... 11/24/15 Sabre Corporation Trust Group of Companies Provides online and mobile hotel booking and reservations management software $154.0 NA NA Currently operating in stealth mode, intends to provide cloud application development tools that enable enterprises to 11/19/15 Google Inc. Bebop Technologies Inc. [dba bebop] $380.2 NA NA build, maintain and integrate cloud applications. 11/19/15 Familiprix Inc. ZoomMed Inc. Provides multi-pharmacy laboratory management software $1.5 NA NA
11/18/15 Tack Fiori International Group Limited Beijing Tianya Co. Ltd. Provides mobile healthcare application security software for businesses. $40.0 NA NA
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 23 LTM Software M&A Activities
Ann. Implied Enterprise EV / TTM Date Buyer Seller Seller Description Value ($) TTM Rev Rev Provides information security systems integration services, as well as security risk assessment and threat modeling 11/17/15 Kordia Group Limited Aura Information Security Ltd. $6.5 NA NA consulting services, for small- to medium-sized enterprises (SMEs) and government. Provides electronic and hybrid OTC energy exchange trade execution, reporting, market data and risk management 11/16/15 Intercontinental Exchange Inc. Trayport Limited $650.0 $80.0 8.1x SaaS 11/16/15 LifeLogger Technologies Corp. Pixorial Inc. (assets) Provides a photo and video sharing software $0.5 NA NA 11/16/15 Upland Software Ultriva Inc. Provides supply chain work management SaaS $6.6 NA NA
11/09/15 Blue Coat Systems Inc. Elastica Inc. Provides enterprise cloud application control (CAC) SaaS $280.0 $5.0 NM
11/09/15 Microsoft Corporation Secure Islands Technologies Ltd. Provides enterprise data encryption, information protection and control (IPC) software $85.0 $8.0 NA 11/09/15 Tenon Facility Management Singapore Frontline Security Pte. Ltd. Provides physical security systems and services $0.9 NA NA
11/05/15 NeuStar Inc. MarketShare Partners LLC Provides marketing campaign business intelligence (BI) analytics SaaS for businesses. $450.0 $57.0 7.9x
11/05/15 New Relic Inc. Opsmatic Inc. Provides enterprise cloud infrastructure configuration monitoring SaaS $12.3 NA NA Provides enterprise social media compliance and management software that enables social media communications risk 11/03/15 Proofpoint, Inc. Socialware $9.0 NA NA management, access control, content archiving, brand protection and social marketing. 11/03/15 IBM Corporation Gravitant Inc. Provides enterprise cloud brokerage platform-as-a-service $95.0 $2.0 NA
11/03/15 West Corporation Magnetic North Ltd. Provides Web-based inbound, outbound and blended contact center SaaS $39.0 NA NA
Provides enterprise e-commerce marketing customer data management, automated attribution, customer segmentation 11/03/15 Zeta Interactive Corp. eBay Enterprise [eBay Inc.] (CRM division assets) $75.0 $55.0 1.4x and email marketing SaaS 11/02/15 Endurance International Group Inc. Constant Contact Inc. [fka Roving Software] Provides email marketing and online survey creation, campaign management and delivery Saas for businesses $919.3 $353.5 2.6x 11/02/15 Akamai Technologies Inc. Bloxx Ltd. Provides enterprise secure Web gateway, Web and email filtering SaaS $18.7 $5.0 3.7x
11/02/15 Pamplona Capital Management LLP MedAssets Inc. Provides healthcare ERP and SCM software and SaaS $1,881.1 $750.0 2.5x
Source: Capital IQ, 451 Research, Wall Street Research
PIPER JAFFRAY 24 Software Private Capital Raise Activity
Closed Date Company Buyers/Investors Business Description Value ($USDmm) 11/02/2016 CarteNav Solutions Inc. Lockheed Martin Aeronautics Company CarteNav Solutions Inc. develops and deploys situational awareness solutions for operational missions of military, 1.4 government, and commercial customers in Canada and internationally. 11/01/2016 Droit Financial Technologies LLC Goldman Sachs Group, Merchant Banking Division; DRW Holdings, LLC; Wells Fargo & Company, Investment Droit Financial Technologies LLC, a financial technology firm, provides pre-trade front office and post-trade 16.0 Arm; Pivot Investment Partners LLC compliance solutions for OTC derivative trading processes. 11/01/2016 CounterTack, Inc. Goldman Sachs Group, Merchant Banking Division; EDB Investments Pte. Ltd.; Siemens Venture Capital CounterTack, Inc. provides real-time endpoint threat detection and response solutions to enterprises and government 10.0 GmbH; Alcatel-Lucent (ENXTPA:ALU); Mitsui & Co. Global Investment, Inc.; Fairhaven Capital Partners, LLC; organizations. 10/31/2016 Breaking Data Corp. (TSXV:BKD) - Breaking Data Corp. operates as a technology provider of semantic and local mobile search for consumers and 3.7 businesses in Canada and the United States. 10/28/2016 HealthSpace Data Systems Ltd. (CNSX:HS) - HealthSpace Data Systems Ltd. develops inspection, information, and communication management systems for 2.6 federal, state, county, and municipal governments in the United States and Canada. 10/28/2016 Solovis, LLC - Solovis, LLC provides investment management portfolio analysis and reporting software. 1.3
10/27/2016 BrainCheck, Inc. - BrainCheck, Inc. offers a mobile interactive test for cognitive health. 3.0
10/26/2016 Burrito Labs, Inc. Slow Ventures; Breyer Capital; HashTag One; Tull Investment Group Burrito Labs, Inc., doing business as Heal, develops a mobile application that allows users to get a doctor to their 38.0 home. 10/26/2016 TVision Insights, Inc. Itochu Technology Inc.'s Venture Investment Division; Project 11; Golden Venture Partners, Inc.; Jump TVision Insights, Inc. designs and develops a facial recognition technology to analyze television viewer behavior. 6.8 Capital; Accomplice, LLC 10/26/2016 Winnie, Inc. Deep Fork Capital; Ludlow Ventures LLC; Homebrew Management LLC; BBG Ventures; KPCB Edge; Flight Winnie, Inc. develops and delivers an application that offers parents with information needed to travel, explore, or run 2.3 Ventures errands with their kids. 10/25/2016 Clarifai, Inc. Menlo Ventures; Osage Partners LLC; QUALCOMM Ventures; Lux Capital Management; Union Square Clarifai, Inc. provides advanced image recognition systems for detecting near-duplicates and visual search. 30.0 Ventures 10/25/2016 Mobcrush, Inc. Kleiner Perkins Caufield & Byers; First Round Capital; Raine Ventures LLC; Lowercase Capital; Evolution Mobcrush, Inc., a technology and entertainment company, develops a live streaming application and community for 20.0 Media Growth Partners gamers. 10/25/2016 IrisVR, Inc. Azure Capital Partners; The Morningside Group Limited; Emergence Capital Partners; Valar Ventures LP; IrisVR, Inc. develops virtual realty (VR) software applications for architecture, engineering, and construction industries. 8.0 Pritzker Group Venture Capital; Indicator Ventures; Locke Mountain Venture LLC 10/25/2016 MYND Management, Inc. Canaan Partners MYND Management, Inc. develops MYND, a mobile rental property management application that tracks and controls 5.5 the data of the real estate investments. 10/25/2016 IQvantage, Inc. - IQvantage, Inc. provides applications for precise engagement. 3.9
10/25/2016 AvidXchange, Inc. - AvidXchange, Inc. provides accounts payable and payment automation solutions for midsize companies, including real 3.5 estate, financial services, energy, and construction in North America. 10/25/2016 Baffle, Inc. True Ventures; Engineering Capital, LLC Baffle, Inc. develops and offers data encryption software. 3.0
10/25/2016 Uplevel Security, Inc. First Round Capital; Aspect Ventures Uplevel Security, Inc. develops an incident analysis and response platform. 2.5
10/24/2016 K4Connect, Inc. Sierra Ventures; Lowe's Companies, Inc. (NYSE:LOW); Intel Capital; Stonehenge Growth Equity Partners; K4Connect, Inc. develops and provides a software solution that helps to connect multiple devices and control them 8.0 Better Ventures, LLC; Traverse Venture Partners; RGAx LLC through a single application. 10/24/2016 Nozomi Networks Inc. Lux Capital Management; GGV Capital; Planven Investments SA Nozomi Networks Inc. offers cybersecurity and operational visibility solutions for industrial control systems (ICS). 7.5
10/24/2016 FreeAgent Software, Inc. - FreeAgent Software, Inc. develops FreeAgent, a sales network that empowers salespeople to crush their quotas, enrich 2.0 their sales data, and grow their sales careers. 10/20/2016 Travelator, Inc. Accel Partners; New Enterprise Associates Travelator, Inc., doing business as TravelBank, develops expense management software solution. 10.0
10/20/2016 Triseum, LLC - Triseum, LLC creates learning video games empowering players to learn through fun, engaging, and immersive 2.0 experiences. 10/19/2016 Notion AI, Inc. Accel Partners; SVB Silicon Valley Bank, Investment Arm; Hyde Park Venture Partners; Drive Capital, LLC Notion AI, Inc. develops artificial intelligence (AI) solutions that solve email overload and enhance communications. 9.5
10/19/2016 Hangar Technology, Inc Lux Capital Management; Fontinalis Partners, LLC; Haystack Partners Hangar Technology, Incorporated develops software to automate aerial data acquisition as well as analysis for multiple 6.5 commercial and industrial verticals. 10/19/2016 Ticket Evolution INC - Ticket Evolution INC. develops a broker owned ticket exchange platform. 2.0
10/18/2016 ThreatMetrix Inc. - ThreatMetrix Inc. provides context-based business security and fraud prevention solutions for businesses in various 30.0 industries worldwide. 10/18/2016 Mom.life Altair Capital Management; QD Ventures LLC Mom. 1.5
10/14/2016 Snapsheet, Inc. IA Capital Group; F-Prime Capital Partners; Liberty Mutual Strategic Ventures; Intact Ventures Inc. Snapsheet, Inc. provides self-service claims solution for auto insurance carriers. 20.0
10/14/2016 HYPR CORP. BOLDstart Ventures; RTP Ventures; Mesh Ventures HYPR CORP. develops secure mobile payments and authentication solutions. 3.0
10/13/2016 JDA Software Group, Inc. New Mountain Capital, LLC; The Blackstone Group L.P. (NYSE:BX) JDA Software Group, Inc. designs and develops end-to-end integrated supply chain and retail management software 575.0 solutions. 10/13/2016 TouchBistro, Inc. BDC Venture Capital; Kensington Capital Partners Limited; Relay Ventures; Round 13 Capital; Huff Capital TouchBistro, Inc. develops iPad point of sale solutions for restaurants, cafes, bars, food trucks, and other food and 13.0 Inc. drink venues.
Source: Capital IQ
PIPER JAFFRAY 25 Software Private Capital Raise Activity
Closed Date Company Buyers/Investors Business Description Value ($USDmm) 10/12/2016 tCell.io, Inc. Allegis Capital; Menlo Ventures; SV Angel; A Capital; Webb Investment Network; CrunchFund tCell. 9.4
10/12/2016 Virgil Security, Inc. Blu Venture Investors, LLC; KEC Ventures; Bloomberg Beta L.P.; Working Lab Capital, LLC; Charge Ventures; Virgil Security, Inc. develops and markets cryptographic software and services for use by developers and end-users. 4.0 Sparkland Capital; NextGen Venture Partners 10/12/2016 Serverless, Inc. Trinity Ventures Serverless, Inc. provides development framework for building serverless architectures. 3.0
10/11/2016 GigaMedia Access Corporation Balance Point Capital Advisors, LLC GigaMedia Access Corporation, also known as GigaTrust, provides enterprise rights management software that 20.0 delivers content protection and authentication services to large commercial and government enterprises, as well as 10/11/2016 ActiveCampaign, Inc. Silversmith Capital Partners ActiveCampaign, Inc. provides email marketing solutions for Fortune 500 companies and small businesses in the 20.0 United States. 10/11/2016 Azteca Systems, Inc. Polaris Partners; Blue Cloud Ventures Azteca Systems, Inc. is engaged in the development of Geographic Information Systems (GIS) centric software 14.5 applications in the United States. 10/11/2016 Mobiquity Inc. - Mobiquity Inc. provides mobile engagement solutions. 13.2
10/11/2016 E8 Security Inc. Allegis Capital; The Hive; March Capital Partners; Strategic Cyber Ventures LLC E8 Security Inc. provides behavioral intelligence driven security solutions. 12.0
10/11/2016 Blue Medora LLC VMware, Inc. (NYSE:VMW); Grand Angels, LLC; Start Garden; eLab Ventures; Lewis & Clark Venture Capital, Blue Medora LLC develops software solutions that extend the visibility of cloud system management and application 8.6 LLC performance management solutions. 10/11/2016 HomeMe, Inc. Menlo Ventures HomeMe, Inc. designs and develops a home renting mobile application that instantly pre-approves users to rent an 3.2 apartment on demand. 10/11/2016 eBrevia, Inc. - eBrevia, Inc. develops software for due diligence, contract management, lease abstraction, and document drafting. 1.8
10/07/2016 Legoly, Inc. - Legoly, Inc. develops artificial intelligence assisted shopping solutions that enable consumers to make buying 2.3 decisions for online shopping. 10/07/2016 Acceleware Ltd. (TSXV:AXE) - Acceleware Ltd., a technology company, develops and markets special purpose software accelerators that are used to 1.5 reduce engineering design simulation and data processing run times in Canada and the United States. 10/06/2016 Financeit Canada Inc. The Pritzker Organization; DNS Capital, LLC Financeit Canada Inc. provides Financeit, a platform that allows businesses to offer consumer financing to their 16.6 customers from various devices in Canada. 10/06/2016 Moonlighting, LLC The McClatchy Company (NYSE:MNI); tronc, Inc. (NasdaqGM:TRNC); Gannett Co., Inc. (NYSE:GCI) Moonlighting, LLC designs and develops mobile application for employment purposes. 2.3
10/05/2016 HappyCo Inc. 500 Startups; Point Nine Capital; Flight Ventures HappyCo Inc. develops mobile tools for the real estate rental industry. 7.5
10/05/2016 Madefire, Inc. Framestore Limited; Plus Capital Madefire, Inc. develops a mobile application that enables users to read, share, and interact with stories as they unfold 6.5 on-screen through words, pictures, motion, and sound. 10/05/2016 First Contact Entertainment Inc. - First Contact Entertainment Inc. develops virtual reality (VR) games. 5.0
10/05/2016 WineNDine LLC Chetrit Group, LLC; M7 Tech Partners; Jordache Ventures WineNDine LLC develops a meal review mobile application. 2.5
10/04/2016 aPriori Technologies Inc. - aPriori Technologies Inc. designs, develops, and markets product cost management software solutions for enterprises 3.5 in the United States and internationally.
Source: Capital IQ
PIPER JAFFRAY 26 High Growth SaaS
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 SaaS High Growth athenahealth, Inc. (ATHN) $4,112 $4,257 60% $1,052 61% $160 19% 18% 3.9x 3.3x 17.5x 14.7x Benefitfocus, Inc. (BNFT) 776 791 58% 225 47% (11) 27% 24% 3.4 2.7 NM NM Callidus Software Inc. (CALD) 1,063 877 77% 197 62% 25 18% 19% 4.3 3.6 34.2 26.0 Cornerstone OnDemand, Inc. (CSOD) 1,981 1,906 74% 410 68% 9 25% 22% 4.5 3.7 NM 36.0 HubSpot, Inc. (HUBS) 2,060 1,909 96% 248 76% (7) 45% 31% 7.2 5.5 NM NM New Relic, Inc. (NEWR) 1,862 1,664 92% 222 80% (31) 44% 31% 7.1 5.4 NM NM Xactly Corporation (XTLY) 409 378 83% 87 60% (10) 28% 24% 3.9 3.1 NM NM salesforce.com, inc. (CRM) 51,912 52,159 88% 7,475 75% 1,234 25% 21% 6.3 5.2 32.0 25.4 ServiceNow, Inc. (NOW) 13,717 13,118 91% 1,290 70% 220 38% 30% 9.5 7.3 NM 33.8 SPS Commerce, Inc. (SPSC) 1,141 1,003 87% 185 67% 25 22% 18% 5.2 4.4 38.1 30.5 The Ultimate Software Group, Inc. (ULTI) 6,052 5,944 89% 741 62% 172 26% 22% 7.6 6.2 31.5 24.8 Workday, Inc. (WDAY) 16,548 14,987 89% 1,352 68% 95 34% 31% 9.6 7.3 NM NM
75th Percentile $7,969 $7,738 89% $1,112 71% $163 35% 30% 7.3x 5.7x 34.2x 32.1x Median $2,021 $1,908 88% $329 68% $25 27% 23% 5.7x 4.8x 32.0x 26.0x Mean $8,470 $8,250 82% $1,124 66% $157 29% 24% 6.0x 4.8x 30.7x 27.3x 25th Percentile $1,121 $971 77% $216 62% ($8) 24% 21% 4.2x 3.5x 31.5x 25.1x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 27 Moderate Growth SaaS
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Moderate Growth SaaS Amber Road, Inc. (AMBR) $267 $274 88% $71 49% ($9) 10% 13% 3.7x 3.3x NM NM Bazaarvoice, Inc. (BV) 406 356 80% 201 62% 5 1% 5% 1.8 1.7 48.0 18.8 ChannelAdvisor Corporation (ECOM) 355 291 86% 111 80% 7 12% 14% 2.6 2.3 NM NM Halogen Software Inc. (HGN) 144 109 86% 71 76% 7 11% 12% 1.5 1.3 24.6 17.7 IntraLinks Holdings, Inc. (IL) 625 654 100% 290 73% 31 8% 9% 2.2 2.0 12.8 9.4 j2 Global, Inc. (JCOM) 3,487 3,707 86% 827 83% 359 19% 12% 4.3 3.9 9.3 8.1 Jive Software, Inc. (JIVE) 312 212 78% 203 65% 8 3% (5%) 1.1 1.1 14.2 11.8 LivePerson Inc. (LPSN) 496 440 98% 226 71% 27 (7%) 5% 2.0 1.9 23.6 16.8 LogMeIn, Inc. (LOGM) 2,602 2,422 98% 324 86% 75 23% 15% 7.2 6.3 27.5 23.1 Marin Software Incorporated (MRIN) 89 55 55% 106 66% 8 (8%) (3%) 0.6 0.6 47.1 12.3 RealPage, Inc. (RP) 2,280 2,239 99% 541 57% 110 22% 15% 3.9 3.4 18.1 14.9 RingCentral, Inc. (RNG) 1,659 1,522 88% 359 75% 19 27% 24% 4.0 3.2 NM 48.1 ServiceSource International, Inc. (SREV) 491 431 98% 249 35% 7 0% 9% 1.7 1.6 NM 36.8 Tangoe, Inc. (TNGO) 371 340 93% 219 54% 27 6% 0% 1.5 1.5 16.3 NA WageWorks, Inc. (WAGE) 2,736 2,148 99% 347 66% 93 8% 12% 5.9 5.3 19.8 16.9 Zix Corporation (ZIXI) 263 238 85% 59 82% 13 10% 10% 4.0 3.6 14.6 13.7
75th Percentile $1,814 $1,679 98% $330 77% $42 14% 14% 4.0x 3.5x 25.3x 18.8x Median $448 $393 88% $223 68% $16 9% 11% 2.4x 2.1x 18.9x 16.8x Mean $1,036 $965 89% $263 67% $49 9% 9% 3.0x 2.7x 23.0x 19.1x 25th Percentile $301 $265 86% $110 61% $7 2% 5% 1.7x 1.5x 24.6x 12.3x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 28 Business Intelligence / Data Analytics
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Business Intelligence / Data Analytics Datawatch Corporation (DWCH) $83 $55 88% $30 84% ($8) 2% NA 1.8x NA NM NA MicroStrategy Inc. (MSTR) 2,267 1,687 99% 516 82% 140 (3%) 3% 3.3 3.2 12.3 10.8 Splunk, Inc. (SPLK) 7,797 6,771 87% 793 81% 36 37% 28% 7.4 5.8 NM NM Tableau Software, Inc. (DATA) 3,608 2,743 48% 779 88% 78 24% 25% 3.4 2.7 42.2 27.3 Verint Systems Inc. (VRNT) 2,384 2,764 76% 1,072 65% 179 (2%) 7% 2.5 2.3 11.0 9.6
75th Percentile $3,608 $2,764 88% $793 84% $140 24% 26% 3.4x 3.8x 27.2x 19.0x A Median $2,384 $2,743 87% $779 82% $78 2% 16% 3.3x 2.9x 12.3x 10.8x Mean $3,228 $2,804 79% $638 80% $85 12% 16% 3.7x 3.5x 21.8x 15.9x 25th Percentile $2,267 $1,687 76% $516 81% $36 (2%) 6% 2.5x 2.6x 31.0x 10.2x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 29 Infrastructure / IT Management
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Infrastructure / IT Management CA, Inc. (CA) $13,400 $12,904 92% $4,060 86% $1,401 (1%) 2% 3.2x 3.2x 8.5x 8.0x Citrix Systems, Inc. (CTXS) 13,477 12,344 95% 3,415 85% 1,113 4% 4% 3.6 3.5 10.4 9.8 Commvault Systems, Inc. (CVLT) 2,430 1,986 95% 627 87% 90 6% 8% 3.2 2.9 25.8 20.4 Micro Focus International plc (MCRO) 4,499 5,565 82% 1,245 89% 469 9% 4% 4.1 4.0 8.8 8.3 NetScout Systems, Inc. (NTCT) 2,905 2,901 92% 1,135 66% 152 47% 7% 2.5 2.3 10.6 7.5 Pegasystems Inc. (PEGA) 2,746 2,616 97% 755 70% 127 16% 12% 3.3 2.9 22.6 19.6 Progress Software Corporation (PRGS) 1,425 1,329 97% 400 88% 127 9% 3% 3.2 3.1 9.2 9.4 Red Hat, Inc. (RHT) 14,127 12,819 91% 2,235 85% 560 17% 16% 5.6 4.8 21.7 18.0 ServiceNow, Inc. (NOW) 13,717 13,118 91% 1,290 70% 220 38% 30% 9.5 7.3 NM 33.8 Software Aktiengesellschaft (SOW) 2,463 2,328 82% 865 76% 243 1% 2% 2.4 2.3 7.5 7.3 VMware, Inc. (VMW) 32,488 25,712 97% 6,928 85% 2,501 6% 5% 3.6 3.5 10.3 9.7
75th Percentile $13,597 $12,861 96% $2,825 86% $837 16% 10% 3.9x 3.7x 18.9x 18.8x enMedian $4,499 $5,565 92% $1,245 85% $243 9% 5% 3.3x 3.2x 10.4x 9.7x Mean $9,425 $8,511 92% $2,087 80% $637 14% 9% 4.0x 3.6x 13.5x 13.8x 25th Percentile $2,605 $2,472 91% $810 73% $140 5% 3% 3.2x 2.9x 16.8x 8.1x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 30 Large-Cap Technology
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Large-Cap Technology Adobe Systems Incorporated (ADBE) $52,220 $49,663 93% $5,552 86% $1,991 22% 21% 8.5x 7.0x 21.8x 17.7x HP Inc. (HPQ) 27,290 28,413 99% 99,884 24% 10,040 (54%) (2%) 0.6 0.6 7.0 6.8 International Business Machines Corporation (IBM) 154,387 182,025 98% 80,208 48% 18,047 (2%) (0%) 2.3 2.3 9.4 8.8 Intuit Inc. (INTU) 28,729 28,621 95% 4,694 84% 1,736 6% 10% 6.0 5.5 17.3 14.1 Oracle Corporation (ORCL) 166,518 152,444 94% 37,194 58% 15,715 (0%) 2% 4.1 4.0 9.0 8.7 salesforce.com, inc. (CRM) 51,912 52,159 88% 7,475 75% 1,234 25% 21% 6.3 5.2 32.0 25.4 SAP SE (SAP) 98,615 99,951 93% 23,240 68% 7,136 6% 7% 4.1 3.9 11.8 11.5
75th Percentile $126,501 $126,198 96% $58,701 80% $12,878 14% 16% 6.2x 5.3x 19.5x 15.9x Median $52,220 $52,159 94% $23,240 68% $7,136 6% 7% 4.1x 4.0x 11.8x 11.5x Mean $82,810 $84,754 94% $36,892 63% $7,986 0% 8% 4.6x 4.1x 15.5x 13.3x 25th Percentile $40,321 $39,142 93% $6,514 53% $1,863 (1%) 1% 3.2x 3.1x 17.6x 8.7x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 31 Human Capital Management
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Human Capital Management Benefitfocus, Inc. (BNFT) $776 $791 58% $225 47% ($11) 27% 24% 3.4x 2.7x NM NM Cornerstone OnDemand, Inc. (CSOD) 1,981 1,906 74% 410 68% 9 25% 22% 4.5 3.7 NM 36.0 Halogen Software Inc. (HGN) 144 109 86% 71 76% 7 11% 12% 1.5 1.3 24.6 17.7 Paycom Software, Inc. (PAYC) 2,496 2,451 78% 306 86% 83 46% 29% 7.5 5.8 29.0 22.3 Paylocity Holding Corporation (PCTY) 1,720 1,642 67% 251 58% 26 37% 29% 6.4 5.0 NM 38.8 The Ultimate Software Group, Inc. (ULTI) 6,052 5,944 89% 741 62% 172 26% 22% 7.6 6.2 31.5 24.8 WageWorks, Inc. (WAGE) 2,736 2,148 99% 347 66% 93 8% 12% 5.9 5.3 19.8 16.9 Workday, Inc. (WDAY) 16,548 14,987 89% 1,352 68% 95 34% 31% 9.6 7.3 NM NM
75th Percentile $3,565 $3,325 89% $493 70% $93 35% 29% 7.5x 5.9x 29.6x 33.2x Median $2,238 $2,027 82% $327 67% $54 27% 23% 6.2x 5.2x 26.8x 23.6x Mean $4,057 $3,747 80% $463 66% $59 27% 23% 5.8x 4.7x 26.2x 26.1x 25th Percentile $1,484 $1,429 72% $244 61% $9 22% 20% 4.2x 3.4x 28.9x 18.9x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 32 HR Outsourcing
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 HR Outsourcing Aon plc (AON) $29,788 $34,994 97% $11,571 41% $2,817 1% 4% 3.0x 2.9x 13.0x 12.3x Automatic Data Processing, Inc. (ADP) 41,469 40,651 95% 11,871 43% 2,783 8% 7% 3.3 3.1 15.9 14.6 Barrett Business Services Inc. (BBSI) 389 313 99% 813 60% 39 NA NA NA NA NA NA CBIZ, Inc. (CBZ) 633 820 96% 785 12% 90 7% 5% 1.0 1.0 8.7 8.1 H&R Block, Inc. (HRB) 5,034 6,096 61% 3,026 48% 820 (1%) 2% 2.0 2.0 7.1 7.2 Insperity, Inc. (NSP) 1,539 1,377 88% 2,862 17% 131 13% 10% 0.5 0.4 9.7 8.2 Paychex, Inc. (PAYX) 20,637 19,744 92% 3,014 71% 1,326 8% 7% 6.4 6.0 15.2 13.9 WageWorks, Inc. (WAGE) 2,736 2,148 99% 347 66% 93 8% 12% 5.9 5.3 19.8 16.9
75th Percentile $22,925 $23,557 98% $5,162 62% $1,690 8% 9% 4.6x 4.2x 15.5x 14.3x Median $3,885 $4,122 96% $2,938 46% $476 8% 7% 3.0x 2.9x 13.0x 12.3x Mean $12,778 $13,268 91% $4,286 45% $1,012 6% 7% 3.2x 3.0x 12.8x 11.6x 25th Percentile $1,313 $1,237 91% $806 35% $92 4% 5% 1.5x 1.5x 14.9x 8.1x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 33 CRM / Marketing
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 CRM / Marketing Bazaarvoice, Inc. (BV) $406 $356 80% $201 62% $5 1% 5% 1.8x 1.7x 48.0x 18.8x Callidus Software Inc. (CALD) 1,063 877 77% 197 62% 25 18% 19% 4.3 3.6 34.2 26.0 ChannelAdvisor Corporation (ECOM) 355 291 86% 111 80% 7 12% 14% 2.6 2.3 NM NM Xactly Corporation (XTLY) 409 378 83% 87 60% (10) 28% 24% 3.9 3.1 NM NM Marin Software Incorporated (MRIN) 89 55 55% 106 66% 8 (8%) (3%) 0.6 0.6 47.1 12.3 salesforce.com, inc. (CRM) 51,912 52,159 88% 7,475 75% 1,234 25% 21% 6.3 5.2 32.0 25.4
75th Percentile $900 $752 85% $200 73% $20 23% 21% 4.2x 3.5x 47.3x 25.5x Median $407 $367 81% $154 64% $7 15% 16% 3.2x 2.7x 40.6x 22.1x Mean $9,039 $9,020 78% $1,363 67% $211 13% 13% 3.2x 2.7x 40.3x 20.6x 25th Percentile $367 $307 78% $107 62% $5 4% 7% 2.0x 1.8x 45.6x 17.2x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 34 Contact Center
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Contact Center 8x8 Inc. (EGHT) $1,402 $1,232 94% $234 73% $24 21% 20% 5.2x 4.3x NM 39.5x eGain Corporation (EGAN) 69 77 51% 68 67% 1 (4%) (3%) 1.1 1.1 42.9 NM Five9, Inc. (FIVN) 773 760 89% 154 57% 7 24% 15% 4.8 4.1 NM NM LivePerson Inc. (LPSN) 496 440 98% 226 71% 27 (7%) 5% 2.0 1.9 23.6 16.8 NICE Ltd. (NICE) 4,200 3,402 99% 965 67% 266 8% 7% 3.4 3.2 12.1 10.9 Verint Systems Inc. (VRNT) 2,384 2,764 76% 1,072 65% 179 (2%) 7% 2.5 2.3 11.0 9.6
75th Percentile $2,138 $2,381 97% $782 70% $141 18% 13% 4.4x 3.9x 28.5x 22.5x Median $1,087 $996 92% $230 67% $26 3% 7% 2.9x 2.7x 17.8x 13.9x Mean $1,554 $1,446 85% $453 67% $84 7% 9% 3.2x 2.8x 22.4x 19.2x 25th Percentile $565 $520 80% $172 66% $11 (4%) 6% 2.1x 2.0x 25.8x 10.6x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 35 Security
Market Enterprise Gross Revenue EV / EV / Cap Value Price % Revenue Margin EBITDA Growth Revenue EBITDA ($ in millions, except per share data) 11/11/2016 11/11/2016 52 Wk High LTM LTM LTM 2016 2017 2016 2017 2016 2017 Security Akamai Technologies, Inc. (AKAM) $11,494 $10,450 92% $2,303 65% $867 6% 10% 4.5x 4.1x 11.1x 10.2x Australian Vintage Limited. (AVG) 86 162 72% 183 25% 13 2% 7% 0.4 0.3 1.1 0.9 Barracuda Networks, Inc. (CUDA) 1,287 1,112 90% 338 77% 56 9% 9% 3.3 3.0 18.6 13.3 CA, Inc. (CA) 13,400 12,904 92% 4,060 86% 1,401 (1%) 2% 3.2 3.2 8.5 8.0 Check Point Software Technologies Ltd. (CHKP) 14,769 11,061 94% 1,713 89% 944 6% 6% 6.4 6.0 11.6 11.1 CyberArk Software, Ltd. (CYBR) 1,909 1,634 89% 204 86% 55 32% 23% 7.7 6.3 29.3 24.5 Experian plc (EXPN) 13,347 16,371 87% 4,607 43% 1,456 (3%) 5% 3.6 3.4 10.3 9.8 FireEye, Inc. (FEYE) 2,464 2,269 60% 714 62% (141) 16% 15% 3.1 2.7 NM NM Fortinet Inc. (FTNT) 5,669 4,388 85% 1,209 73% 179 25% 17% 3.5 3.0 20.6 15.9 Guidance Software, Inc. (GUID) 190 183 90% 109 69% (5) 3% 6% 1.7 1.6 NM NM Imperva Inc. (IMPV) 1,317 1,058 51% 259 80% (1) 7% 20% 4.2 3.5 NM NM NetScout Systems, Inc. (NTCT) 2,905 2,901 92% 1,135 66% 152 47% 7% 2.5 2.3 10.6 7.5 Palo Alto Networks, Inc. (PANW) 14,230 12,799 80% 1,379 73% 246 36% 33% 8.2 6.1 37.9 25.2 Parkit Enterprise Inc. (PKT) 9 (7) 69% 1 88% (0) NA NA NA NA NA NA Proofpoint, Inc. (PFPT) 3,498 3,447 99% 344 70% 21 41% 30% 9.2 7.1 NM NM Qualys, Inc. (QLYS) 1,398 1,123 91% 190 79% 66 21% 19% 5.7 4.8 17.5 14.4 Radware Ltd. (RDWR) 575 264 79% 200 82% 18 (10%) 3% 1.3 1.3 16.0 13.3 Splunk, Inc. (SPLK) 7,797 6,771 87% 793 81% 36 37% 28% 7.4 5.8 NM NM Symantec Corporation (SYMC) 15,585 16,983 97% 3,645 82% 1,155 (38%) 17% 4.4 3.8 14.1 10.3 Trend Micro Inc. (4704) 530,036 362,151 71% 124,962 83% 39,368 5% 7% NM NM NM NM Varonis Systems, Inc. (VRNS) 824 712 96% 154 91% (3) 26% 19% 4.5 3.7 NM NM VASCO Data Security International Inc. (VDSI) 590 448 69% 196 71% 21 (21%) 15% 2.3 2.0 16.7 16.3 VeriSign, Inc. (VRSN) 10,394 10,500 87% 1,129 82% 783 8% 2% 9.2 9.0 13.2 12.7 Zix Corporation (ZIXI) 263 238 85% 59 82% 13 10% 10% 4.0 3.6 14.6 13.7
75th Percentile $11,957 $10,640 92% $1,462 82% $804 25% 19% 6.2x 5.5x 17.7x 14.8x Median $2,684 $2,585 87% $529 79% $55 8% 10% 4.1x 3.6x 14.4x 13.0x Mean $27,251 $19,997 84% $6,245 74% $1,946 11% 13% 4.6x 3.9x 15.7x 12.9x 25th Percentile $766 $646 77% $194 70% $13 2% 6% 3.2x 2.8x 16.9x 10.1x
Source: S&P Capital IQ, Thomson Reuter’s Consensus, and Renaissance Capital EV/Revenue > 20x Not Meaningful (NM) EV/EBITDA > 60x Not Meaningful (NM) P/E > 100x Not Meaningful (NM)
PIPER JAFFRAY 36 Disclaimer
Piper Jaffray Companies (NYSE: PJC) is a leading investment bank and asset management firm. Securities brokerage and investment banking services are offered in the U.S. through Piper Jaffray & Co., member SIPC and FINRA; in Europe through Piper Jaffray Ltd. and Simmons & Company International Limited, authorized and regulated by the U.K. Financial Conduct Authority; and in Hong Kong through Piper Jaffray Hong Kong Limited, authorized and regulated by the Securities and Futures Commission. Asset management products and services are offered through five separate investment advisory affiliates―U.S. Securities and Exchange Commission (SEC) registered Advisory Research, Inc.; Piper Jaffray Investment Management LLC, PJC Capital Partners LLC and Piper Jaffray & Co.; and Guernsey-based Parallel General Partners Limited, authorized and regulated by the Guernsey Financial Services Commission.
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PIPER JAFFRAY 37