Merger Tracker

William Blair & Company is a global investment banking and asset management firm. We are committed to building enduring M&A Markets Analysis relationships with our clients and providing expertise and 2Q 2012 solutions to meet their evolving needs. An independent and employee-owned firm, William Blair is based in Chicago, with 10 office locations including London, New York, Shanghai, and Zurich. For more information, please visit williamblair.com.

Mark Brady Global Head of M&A [email protected] +1 312 364 8853

Andrew Colmar Analyst [email protected] +1 312 364 5226

Merger Tracker

Quarterly Overview of Global Middle-Market M&A Activity Debt Capital & Private Equity Market Activity

William Blair & Company

Table of Contents

Commentary ...... 1 Global Activity ...... 2 Regional Transactions ...... 2 Middle‐Market Regional Transactions ...... 3 Annual Transactions ...... 4 Global Cross‐Border M&A Flows ...... 5 1H 2012 M&A Activity by Regional Flow ...... 5 U.S. M&A Activity...... 9 Transaction Detail ...... 9 Annual Activity ...... 10 Valuation Multiples ...... 11 Private‐Equity Transaction Analysis ...... 12 Transaction Participants and Considerations ...... 16 Industry Breakdown ...... 18 Cross‐Border Transaction Analysis ...... 20 U. S. Debt Capital and Private Equity / Venture Capital Markets ...... 22 1H 2012 Update ...... 22 European M&A Activity ...... 27 Transaction Detail ...... 27 Valuation Multiples ...... 29 Private‐Equity Transaction Analysis ...... 30 Emerging Markets M&A Activity ...... 31 Select William Blair & Company Transactions ...... 32 William Blair & Company Corporate Industry Coverage ...... 36 Notes ...... 37 Disclosures ...... 38

Merger Tracker Table of Contents

William Blair & Company

Commentary

Introduction

Clients and friends:

The overall marketplace and the middle market specifically saw a slowdown in second quarter both globally and in North America. The global statistics are driven by a substantial drop‐off in European activity with dollar volume down 27.9% and the number of transactions down 24.9% versus the second quarter of last year. More surprisingly, North America has seen a pronounced slowdown. Deals of more than $750 million are down markedly, and even the middle market experienced a 9.4% decrease in the number of transactions versus the second quarter of 2011. Healthcare volumes led the decline, with global healthcare transaction volumes down nearly 40% from 2011 and running at the lowest pace we have seen since 2005. According to PitchBook, Inc., private equity firms are on track to close just 1,332 deals in 2012, which would be the lowest level since 2003.

In our own practice, we have been experiencing a surge in signings and closings on behalf of sellers who are transacting in advance of the election, given the uncertainty and the prospect for an increase in capital gains tax rates in 2013. We have announced 38 M&A transactions aggregating $7.7 billion through the first portion of the year, and we expect that barring an external shock to the system we will see the pace strengthen over the third and fourth quarters. In the second quarter, we advised EasyLink Services on its $332 million sale to Open Text Corporation, MTS on its $156 million acquisition by Omnicell, and ACCO Brands on the $860 million Reverse Morris Trust merger with several of the consumer and office products brands of MeadWestVaco. We also advised the Special Committee on the $247 million take private of China Grentech Corporation, our 29th transaction in the China market since establishing there in 2007.

Thank you for your ideas and your business—and enjoy the second quarter 2012 Merger Tracker.

Mark G. Brady Global Head of Mergers & Acquisitions +1 312 364 8853 [email protected]

Merger Tracker Commentary 1

William Blair & Company

Global Activity

Regional Transactions

• Overall global M&A activity during first half of 2012 remains down in contrast to strong deal activity during the first half of 2011. • The number of announced global transactions for second quarter 2012 totaled 9,680, a 13.9% decline from the same period last year, headlined by significant decreases in Europe and Asia Pacific. • Three of the five regions showed a decline in disclosed dollar volume, which contributed to a 14.8% overall decline from first quarter 2011. • Trailing‐12‐months’ global M&A activity indicates a marked 13.9% decrease in total dollar volume. • Total number of deals for first half 2012 were steered downward for the first time since the corresponding period in 2009, driven largely by consequences of the Euro crisis and slowing growth of the Chinese economy.

Global M&A Activity Detail

Number Of Deals Deal Value % Chg. % Chg. 2010 2011 2012 '12 vs. '11 2010 2011 2012 '12 vs. '11

2Q North America 3,414 3,245 3,300 1.7% $231,009 $263,138 $223,814 (14.9%) Latin America 304 361 420 16.3% 38,547 29,311 51,754 76.6% Europe 3,623 3,918 2,942 (24.9%) 136,862 215,126 155,074 (27.9%) Africa / Middle East 246 205 282 37.6% 7,961 9,794 14,874 51.9% Asia Pacific 3,219 3,518 2,736 (22.2%) 126,983 152,022 125,101 (17.7%) TOTAL 10,806 11,247 9,680 (13.9%) $541,362 $669,390 $570,617 (14.8%)

1H North America 6,573 6,410 6,856 7.0% $449,386 $527,562 $423,286 (19.8%) Latin America 618 744 847 13.8% 110,646 65,305 80,256 22.9% Europe 7,105 7,829 5,966 (23.8%) 306,046 392,767 335,345 (14.6%) Africa / Middle East 494 516 581 12.6% 34,504 18,503 27,759 50.0% Asia Pacific 6,352 6,959 6,076 (12.7%) 242,056 295,432 248,750 (15.8%) TOTAL 21,142 22,458 20,326 (9.5%) $1,142,637 $1,299,570 $1,115,395 (14.2%)

LTM North America 11,044 11,992 13,113 9.3% $814,263 $996,030 $894,213 (10.2%) Latin America 1,110 1,369 1,675 22.4% 154,724 180,141 147,426 (18.2%) Europe 13,624 14,252 12,951 (9.1%) 622,298 768,238 625,087 (18.6%) Africa / Middle East 925 1,077 1,101 2.2% 59,815 50,333 46,714 (7.2%) Asia Pacific 13,049 13,659 13,012 (4.7%) 532,104 620,955 539,718 (13.1%) TOTAL 39,752 42,349 41,852 (1.2%) $2,183,204 $2,615,698 $2,253,158 (13.9%) Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 2 Global Activity

William Blair & Company

MiddleMarket Regional Transactions

• Global middle‐market M&A activity during first half 2012 reported a decrease in number of deals and deal value relative to the overall market. • The number of middle‐market global M&A transactions in the second quarter decreased by 14.7% to 4,515, with a decrease in three of the five regions. • For first half 2012, the disclosed dollar value of global middle‐market transactions decreased 10.7%, resulting from a double‐ digit volume decrease in Europe and Asia Pacific. • Trailing‐12‐months’ global middle‐market M&A activity has begun to stagnate, with similar magnitude decreases in both number of deals and deal value.

Global MiddleMarket M&A Activity Detail

Number Of Deals Deal Value % Chg. % Chg. 2010 2011 2012 '12 vs. '11 2010 2011 2012 '12 vs. '11

2Q North America 1,901 1,466 1,379 (5.9%) $77,561 $89,209 $90,422 1.4% Latin America 148 158 179 13.3% 13,346 15,627 17,329 10.9% Europe 1,109 1,106 886 (19.9%) 64,579 83,706 65,789 (21.4%) Africa / Middle East 124 102 160 56.9% 5,461 9,794 8,960 (8.5%) Asia Pacific 2,260 2,463 1,911 (22.4%) 71,542 85,613 78,780 (8.0%) TOTAL 5,542 5,295 4,515 (14.7%) $232,489 $283,949 $261,281 (8.0%)

1H North America 3,446 2,946 2,656 (9.8%) $146,381 $172,020 $165,137 (4.0%) Latin America 294 343 360 5.0% 26,466 29,455 28,697 (2.6%) Europe 2,123 2,158 1,800 (16.6%) 127,195 158,597 123,593 (22.1%) Africa / Middle East 250 213 323 51.6% 12,315 14,081 15,506 10.1% Asia Pacific 4,556 4,891 4,152 (15.1%) 146,754 166,713 149,859 (10.1%) TOTAL 10,669 10,551 9,291 (11.9%) $459,111 $540,866 $482,792 (10.7%)

LTM North America 5,516 5,913 5,187 (12.3%) $264,306 $345,640 $321,548 (7.0%) Latin America 530 637 705 10.7% 44,819 51,278 59,811 16.6% Europe 4,234 4,249 3,939 (7.3%) 251,020 298,264 254,437 (14.7%) Africa / Middle East 485 497 599 20.5% 24,197 30,781 29,929 (2.8%) Asia Pacific 9,651 9,819 9,070 (7.6%) 316,891 338,201 316,808 (6.3%) TOTAL 20,416 21,115 19,500 (7.6%) $901,233 $1,064,165 $982,532 (7.7%) Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker Global Activity 3

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Annual Transactions

Global M&A Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 50,000 42,678 $4,500 43,904 41,341 45,000 40,995 $4,000 36,728 40,000 36,465 $3,500 35,000 31,233 $3,000 30,000 26,700 26,058 24,972 $2,500 22,879 25,000 22,457 20,326 $2,000 20,000 $1,500 15,000

10,000 $1,000

5,000 $500

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 340 296 293 438 579 796 1,021 592 384 612 560 300 268

Middle Market 13,027 12,412 11,968 13,818 16,894 19,132 22,092 21,898 18,554 21,215 20,724 10,551 9,293

Undisclosed 13,333 12,264 10,618 11,802 13,760 16,800 19,565 18,851 17,527 19,168 22,620 11,606 10,765

Deal Value $1,573 $1,239 $1,356 $1,944 $2,758 $3,621 $4,255 $2,683 $1,921 $2,459 $2,446 $1,300 $1,115 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 4 Global Activity

William Blair & Company

Global CrossBorder M&A Flows

1H 2012 M&A Activity by Regional Flow

CrossBorder M&A Dollar Flows(1)

($ in billions)

$21.0B (22%)

$82.0B ( 3%) $8.3B (81%)

Americas EMEA AsiaPacific

$51.0B ( 3%) $22.5B (30%)

$37.2B (+5%)

(1) Flows defined based on target region and acquirer region. Americas defined as North and South America. EMEA defined as Europe, Middle East, and Africa. Asia defined as Asia, Australia, and Japan. Note: Percent change of dollar flow from 1H 2011.

Global CrossBorder Flow

Inbound Outbound

Transaction Value Number of Deals Transaction Value Number of Deals

Region 1H 2011 1H 2012 % Chg. 1H 2011 1H 2012 % Chg. 1H 2011 1H 2012 % Chg. 1H 2011 1H 2012 % Chg.

North America 74.6 88.3 18.4% 603.0 638.0 5.8% 115.1 98.7 (14.2%) 1,201.0 993.0 (17.3%)

Latin America 20.9 42.0 100.7% 399.0 738.0 85.0% 4.1 13.7 234.8% 33.0 55.0 66.7%

Europe 125.6 108.4 (13.7%) 683.0 763.0 11.7% 90.9 96.2 5.8% 805.0 1,086.0 34.9%

Africa / Middle East 10.0 12.8 28.6% 251.0 260.0 3.6% 25.0 12.6 (49.5%) 89.0 120.0 34.8%

Asia Pacific 71.4 29.3 (58.9%) 673.0 453.0 (32.7%) 67.3 59.7 (11.2%) 481.0 598.0 24.3%

Merger Tracker Global Cross‐Border M&A Flows 5

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Top MiddleMarket Targets & Acquirers

Top Middle Market Acquisitive Countries(1) – Last12Months

Domestic Cross‐Border 6,000 5,000 4,000 2,963 3,000 1,486 2,000 1,312 1,063 1,037 747 737 704 1,000 492 489 0 China Japan Canada Australia United South Korea Russia India Hong Kong Singapore Kingdom

Domestic 2,717 1,164 858 781 606 665 676 633 181 191 CrossBorder 246 322 454 282 431 82 61 71 311 298 Top MiddleMarket Targeted Countries(1) – Last12Months

Domestic Cross‐Border 4,000 3,230 3,000

2,000 1,226 1,119 1,086 867 818 748 737 1,000 436 381 0 China Japan Australia Canada United India South Korea Russian France Malaysia Kingdom Federation

Domestic 2,717 1,164 781 858 606 633 665 676 337 304 CrossBorder 513 62 338 228 261 185 83 61 99 77 Note: Middle‐Market defined as deal value under $750 million. (1) Excludes the United States. Source: Dealogic as of June 30, 2012.

Merger Tracker 6 Global Cross‐Border M&A Flows

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CrossBorder M&A Outflows

North America Latin America Europe

743 800 688 400 349 800 679 700 632 350 700 646 594 290 287 607 600 551 530 300 269 600 515 500 250 500 199 181 400 315 200 165 400 336 262 289 300 150 300 200 100 200 100 50 100 0 0 0 2007 2008 2009 2010 2011 1H 1H 2007 2008 2009 2010 2011 1H 1H 2007 2008 2009 2010 2011 1H 1H 2011 2012 2011 2012 2011 2012

Top Targets Out of North America Top Targets Out of Latin America Top Targets Out of Europe Target 1H 2012 1H 2011 Target 1H 2012 1H 2011 Target 1H 2012 1H 2011 United Kingdom 19.8% 24.8% Canada 37.0% 34.8% United States 41.9% 50.6% Australia 13.0% 11.4% United States 23.6% 20.4% Canada 11.4% 8.0% Japan 11.1% 8.9% Australia 8.5% 9.9% Japan 8.7% 5.1% China 10.3% 8.9% United Kingdom 7.9% 7.2% China 5.9% 6.8% Germany 4.2% 3.8% Japan 3.6% 2.8% Singapore 4.8% 2.7% France 3.8% 2.9% Spain 3.0% 4.4% Australia 4.5% 6.3% South Korea 3.8% 5.1% Portugal 2.4% 1.1% Malaysia 3.8% NA Switzerland 3.4% 3.2% Italy 1.8% 3.3% Israel 2.8% 2.4% Hong Kong 2.7% 2.5% China 1.8% 1.1% India 2.4% 3.0% Russia 2.3% NA Germany 1.8% 0.6% Hong Kong 2.1% 4.2%

Africa/Middle East AsiaPacific

300 1,200 1,092 248 1,044 230 250 207 1,000 188 711 741 200 160 800 671 134 150 112 600 382 100 400 232 50 200 0 0 2007 2008 2009 2010 2011 1H 1H 20072008200920102011 1H 1H 2011 2012 20112012

Top Targets Out of Africa/Middle East Top Targets Out of AsiaPacific Target 1H 2012 1H 2011 Target 1H 2012 1H 2011 Australia 18.7% 26.8% United States 43.5% 53.9% United States 18.7% 9.8% United Kingdom 12.9% 11.3% United Kingdom 13.4% 19.6% Canada 10.8% 7.1% Canada 11.9% 14.3% Germany 3.0% 6.0% France 5.2% 2.7% Switzerland 3.0% 3.4% India 5.2% 0.9% Netherlands 2.6% 3.1% Malaysia 4.5% NA France 2.6% 5.0% Singapore 3.0% 1.8% Belgium 2.2% 0.3% Hong Kong 2.2% 0.9% Sweden 2.2% 0.3% Germany 2.2% 1.8% Russia 1.7% 0.3%

Merger Tracker Global Cross‐Border M&A Flows 7

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CrossBorder M&A Inflows

North America Latin America Europe

1,400 1,206 50 1,200 1,142 40 42 955 1,200 1,062 39 38 1,007 40 1,000 852 1,000 734 795 27 800 683 800 30 611 19 600 600 20 16 371 315 278 400 262 400 10 200 200 0 0 0 20072008200920102011 1H 1H 2007 2008 2009 2010 2011 1H 1H 20072008200920102011 1H 1H 20112012 2011 2012 20112012

Top Acquirers into North America Top Acquirers into Latin America Top Acquirers into Europe Target 1H 2012 1H 2011 Target 1H 2012 1H 2011 Target 1H 2012 1H 2011 United Kingdom 3.3% 16.7% United States 7.9% 37.5% United States 30.2% 29.1% Australia 2.5% 14.2% Canada 5.6% 31.3% Canada 9.4% 10.2% China 1.7% 17.6% Netherlands 2.4% 12.5% Brazil 7.9% 5.4% Brazil 1.6% 6.8% Papua New Guinea 0.8% NA Australia 7.2% 7.3% France 1.4% 2.5% Portugal 0.8% 12.5% India 5.0% 7.5% India 1.4% 20.7% Austria 0.8% 6.3% China 4.3% 5.9% Mexico 1.1% 7.1% Dominican Republic 0.8% 6.3% Israel 3.2% 1.1% Israel 1.0% NA Germany 0.8% NA South Africa 2.2% 2.2% Germany 1.0% 4.3% India 0.8% NA South Korea 2.2% 4.0% Colombia 0.9% 5.6% Ireland 0.8% NA Chile 2.2% 1.9%

Africa/Middle East AsiaPacific

250 800 677 191 700 601 599 200 585 154 600 484 140 500 150 116 105 400 329 309 100 300 48 49 200 50 100 0 0 2007 2008 2009 2010 2011 1H 1H 2007 2008 2009 2010 2011 1H 1H 2011 2012 2011 2012

Top Acquirers into Africa/Middle East Top Acquirers into AsiaPacific Target 1H 2012 1H 2011 Target 1H 2012 1H 2011 Australia 12.2% 8.3% United States 31.4% 33.7% United States 12.2% 12.5% United Kingdom 9.4% 7.9% United Kingdom 10.2% 14.6% Canada 8.4% 10.3% Slovenia 6.1% NA Germany 6.5% 4.0% Canada 6.1% 6.3% Brazil 3.2% 4.0% France 6.1% 6.3% South Africa 3.2% 2.1% Ireland 6.1% NA Switzerland 2.9% 1.2% Poland 4.1% 2.1% Turkey 1.6% 1.8% South Korea 4.1% NA Netherlands 1.6% 2.1% Brazil 4.1% NA Peru 1.6% NA

Merger Tracker 8 Global Cross‐Border M&A Flows

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U.S. M&A Activity

Transaction Detail

• There were a total of 3,392 announced U.S. transactions second quarter 2012, a slight decrease from the corresponding period last year, while the first half 2012 experienced an increase of 5.5% compared with the first half 2011. • The disclosed dollar volume during the first half 2012, however, declined 25.9%, to $458.7 billion because of a decrease of 13.6% in deal value during the second quarter. • In line with overall U.S. M&A activity, the middle‐market in the second quarter 2012 also reported declines in the number of deals and deal value, at 9.4% and 6.8%, respectively.

U.S. M&A Activity Detail

Number Of Deals Deal Value % Chg. % Chg. 2010 2011 2012 '12 vs. '11 2010 2011 2012 '12 vs. '11

2Q < $50M 1,468 1,008 883 (12.4%) $13,465 $12,759 $12,513 (1.9%) $50M‐$250M 299 313 316 1.0% 33,977 36,195 36,143 (0.1%) $250M‐$750M 84 135 120 (11.1%) 35,200 57,317 50,433 (12.0%) Total MiddleMarket 1,851 1,456 1,319 (9.4%) $82,642 $106,271 $99,089 (6.8%) Quarterly Average 1,152 1,519 1,269 (16.5%) 67,563 95,596 89,689 (6.2%) > 750M 76 69 70 1.4% 166,393 195,209 161,639 (17.2%) Undisclosed 1,648 1,873 2,003 6.9% – – – – Total Deals 3,575 3,398 3,392 (0.2%) $249,035 $301,480 $260,728 (13.5%) Quarterly Average 2,528 3,160 3,366 6.5% $296,052 $369,856 $353,959 (4.3%)

1H < $50M 2,609 1,975 1,726 (12.6%) $24,900 $24,293 $23,068 (5.0%) $50M‐$250M 518 601 551 (8.3%) 59,267 70,719 63,753 (9.9%) $250M‐$750M 192 245 209 (14.7%) 79,952 106,283 87,172 (18.0%) Total MiddleMarket 3,319 2,821 2,486 (11.9%) $164,119 $201,295 $173,994 (13.6%) > 750M 128 143 127 (11.2%) $346,873 $418,070 $284,754 (31.9%) Undisclosed 3,309 3,658 4,375 19.6% – – – – Total Deals 6,756 6,622 6,988 5.5% $510,992 $619,365 $458,747 (25.9%)

LTM < $50M 4,143 3,967 3,486 (12.1%) $44,636 $45,533 $44,739 (1.7%) $50M‐$250M 964 1,216 1,104 (9.2%) 109,246 141,836 129,113 (9.0%) $250M‐$750M 352 510 437 (14.3%) 146,302 219,264 181,496 (17.2%) Total MiddleMarket 5,459 5,693 5,027 (11.7%) $300,185 $406,633 $355,348 (12.6%) > 750M 224 302 247 (18.2%) $964,730 $1,155,018 $1,013,143 (12.3%) Undisclosed 5,844 6,493 8,372 28.9% – – – – Total Deals 11,527 12,488 13,646 9.3% $1,264,915 $1,561,652 $1,368,491 (12.4%) Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker U.S. M&A Activity 9

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Annual Activity

U.S. M&A Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 13,309 13,236 14,000 12,405 12,600 $2,400 11,444 12,000 10,093 9,934 10,080 9,316 $1,800 10,000 8,939 8,791

8,000 6,622 6,988 $1,200 6,000

4,000 $600 2,000

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 190 128 147 233 281 362 462 229 156 287 266 143 127

Middle Market 4,633 4,009 4,238 4,529 4,463 4,542 4,523 4,758 4,129 6,179 5,338 2,821 2,486

Undisclosed 5,270 4,802 4,406 5,172 5,336 7,501 8,324 6,457 5,031 6,134 7,632 3,658 4,375

Deal Value $871 $566 $688 $993 $1,298 $1,646 $1,755 $1,087 $885 $1,044 $1,177 $619 $459 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

U.S. MiddleMarket M&A Activity

Number of Deals <$50M $50‐250M $250 ‐750M Deal Value Deal Value ($ in billions) 7,000 6,179 $600

6,000 5,338 $500 4,758 4,633 4,529 4,463 4,542 5,000 4,238 4,009 4,523 4,129 $400 4,000 2,821 $300 3,000 2,486 $200 2,000

1,000 $100

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

$250‐750M 297 287 314 403 424 535 626 420 267 456 473 245 209

$50‐250M 1,008 887 1,065 1,220 1,269 1,291 1,332 1,198 788 1,125 1,158 601 551

<$50M 3,328 2,835 2,859 2,906 2,770 2,716 2,565 3,140 3,074 4,598 3,707 1,975 1,726

Deal Value $279 $257 $292 $352 $365 $420 $465 $356 $238 $368 $383 $201 $174 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 10 U.S. M&A Activity

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Valuation Multiples

• Middle market acquisition multiples as measured by enterprise‐value‐to‐EBITDA have plateaued and are on par with the immediate pre‐recession averages. • Trailing‐12‐months’ valuation differential between smaller and larger transactions has narrowed, as multiples for larger transactions have declined compared with 2011. • The one‐ and four‐week acquisitions premiums paid for public companies have increased over the trailing‐12‐months in contrast to the decline in the overall market.

U.S. EV/EBITDA Valuation Multiples

Middle Market Overall Market 12.0x

9.0x

6.0x

3.0x 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

Middle Market 7.1x 8.0x 7.3x 9.3x 10.1x 10.1x 10.0x 8.1x 7.1x 9.4x 10.5x 10.4x

Overall Market 7.9x 8.0x 8.4x 10.0x 10.5x 11.1x 11.9x 9.5x 8.7x 10.1x 12.0x 11.1x Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

U.S. EV/EBITDA MiddleMarket Valuation Multiples(1)

< $50M $50M‐$250M $250M‐$750M 13.0x

8.0x

3.0x 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

< $50M 6.1x 8.0x 7.2x 7.7x 7.0x 8.9x 8.8x 7.2x 3.9x 10.5x 10.9x 9.0x

$50M‐$250M 7.4x 7.3x 6.8x 8.6x 10.5x 9.6x 11.6x 10.1x 7.2x 9.0x 9.4x 9.3x

$250M‐$750M 8.3x 9.4x 9.2x 10.5x 10.3x 11.0x 9.9x 7.9x 9.4x 8.9x 10.9x 10.9x Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Median Acquisition Premiums

1‐Week Premium 4‐Week Premium 60.0%

40.0%

20.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

1‐Week Premium 46.8% 45.0% 35.4% 26.4% 32.1% 27.6% 29.9% 38.1% 50.7% 48.3% 45.1% 47.2%

4‐Week Premium 52.5% 47.5% 41.9% 29.8% 36.0% 30.4% 31.8% 42.6% 54.3% 51.2% 48.3% 51.1% Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker U.S. M&A Activity 11

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PrivateEquity Transaction Analysis

• Private‐equity‐related activity in first half 2012 declined by 14.8% from the year‐ago period, to 769 announced transactions. • In addition, disclosed dollar value totaled $95.5 billion, down 20.9% from first half 2011 relative to the second‐quarter decline of 21.9%. • Middle‐market private‐equity transactions reflected the overall totals, with a 26.0% decline in the second quarter from the year‐ ago quarter, while the overall dollar volume declined 24.5%. • Starting in 2012, we have refined our definition of private‐equity transactions to exclude those deals in which the private‐equity firm was not the controlling shareholder or where the company was publicly traded but still listed a private‐equity firm as a shareholder (the prior data treated this as a private‐equity‐related transaction). All historical data has been restated to reflect this revised definition.

U.S. PrivateEquity Activity Detail

Number Of Deals Deal Value % Chg. % Chg. 2010 2011 2012 '12 vs. '11 2010 2011 2012 '12 vs. '11

Middle‐Market 217 150 111 (26.0%) $23,567 $20,953 $15,826 (24.5%) Monthly Average 169 164 124 (24.5%) 24,230 29,478 22,432 (23.9%) > 750M 29 20 18 (10.0%) 51,360 49,322 39,046 (20.8%) Undisclosed 217 264 241 (8.7%) –– – – Total Deals 463 434 370 (14.7%) $74,926 $70,274 $54,872 (21.9%) Quarterly Average 375 458 412 (10.0%) 43,284 67,461 47,854 (29.1%)

Middle‐Market 360 302 229 (24.2%) $40,350 $38,668 $31,067 (19.7%) > 750M 38 39 30 (23.1%) 63,286 82,169 64,477 (21.5%) Undisclosed 430 562 510 (9.3%) –– – – Total Deals 828 903 769 (14.8%) $103,636 $120,837 $95,544 (20.9%)

LTM

MiddleMarket 677 656 495 (24.5%) $72,689 $88,435 $67,297 (23.9%) > 750M 58 91 63 (30.8%) $100,448 $181,407 $124,119 (31.6%) Undisclosed 764 1,084 1,089 0.5% –– – – Total Deals 1,499 1,831 1,647 (10.0%) $173,137 $269,842 $191,417 (29.1%) Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 12 U.S. M&A Activity

William Blair & Company

U.S. PrivateEquity Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 2,500 2,124 2,183 $700 1,756 1,781 $600 2,000 1,739 1,643 1,571 $500 1,318 1,500 1,199 $400 924 806 903 1,000 769 $300 $200 500 $100 0 $0 Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 16 25 32 62 79 106 139 43 34 90 72 39 30

Middle Market 427 492 592 777 762 849 700 651 617 714 568 302 229

Undisclosed 363 407 575 732 898 1,169 1,344 949 667 952 1,141 562 510

Deal Value $71.3 $85.2 $118.6 $208.5 $282.4 $536.9 $586.1 $181.9 $145.7 $252.6 $216.7 $120.8 $95.5 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

U.S. PrivateEquity Acquisition Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 2,500 $600 1,955 1,823 2,000 1,434 1,454 1,412 1,298 $400 1,500 1,067 982 747 1,000 616 710 640 528 $200 500

0 $0 Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 8 17 24 48 49 91 109 27 14 49 40 20 19

Middle Market 259 324 373 524 615 704 592 538 436 458 398 213 154

Undisclosed 261 275 350 495 748 1,028 1,254 869 532 791 1,016 477 467

Deal Value $30.6 $60.9 $76.4 $151.1 $187.0 $477.5 $469.5 $99.9 $70.3 $139.6 $166.6 $64.5 $54.4 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker U.S. M&A Activity 13

William Blair & Company

U.S. PrivateEquity Acquisition Activity: Platform Versus AddOn Transactions

Percent of Deals Platform Acquisitions Add‐on Acquisitions 1,955 2,000 1,823

1,412 712 1,434 1,454 1,500 608 1,298 1,384 1,067 419 501 982 606 489 613 1,000 747 616 315 528 345 241 1,215 1,243 500 173 993 933 212 752 809 848 771 506 637 316 443 0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

Platform 59.8% 71.9% 67.7% 70.5% 70.3% 66.6% 63.6% 65.1% 64.9% 62.3% 58.3% 55.7%

Add‐On 40.2% 28.1% 32.3% 29.5% 29.7% 33.4% 36.4% 34.9% 35.1% 37.7% 41.7% 44.3% Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

U.S. PrivateEquity Exit Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 500 444 $200 389 361 357 400 345 321 $150 300 247 234 173 183 $100 200 153 103 104 $50 100

0 $0 Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012 of Deals

>$750M 11 4 12 24 47 28 65 16 12 62 45 27 22

Middle Market 60 61 106 177 223 172 186 105 89 168 155 70 64

Undisclosed 32 39 35 46 91 157 193 224 133 91 189 76 97

Deal Value $38.3 $15.8 $39.4 $83.0 $140.3 $85.6 $168.8 $76.6 $44.5 $144.1 $127.7 $79.7 $67.6 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 14 U.S. M&A Activity

William Blair & Company

• Private‐equity funds continue to target high‐growth industries, such as computers and electronics, healthcare, and professional services, which represent 21.3%, 9.6%, and 14.1% of acquisitions, respectively. • Based on a disclosed dollar volume, the computer and electronics sector continued to dominate activity for first half 2012, at $12.9 billion.

PrivateEquity Activity by Target Sector

Number Of Deals Deal Value

2009 2010 2011 1H 2012 2009 2010 2011 1H 2012 Aerospace 6 7 8 5 $1,050 $3,711 $900 $750 Agribusiness 6 6 1 1 $224 $90 – – Auto/Truck 42 43 30 19 $1,486 $4,240 $416 $98 Chemicals 31 53 45 28 $1,124 $7,935 $10,023 $1,548 Computers&Electronics 367 450 389 158 $28,492 $28,510 $44,682 $12,963 Construction/Building 47 61 57 27 $1,774 $4,481 $3,194 $1,103 ConsumerProducts 35 44 52 23 $2,726 $9,214 $4,968 $389 Defense – 2 2 1 – $1,582 – – Dining&Lodging 17 26 26 13 $1,228 $10,359 $2,504 $4,929 Finance 82 112 75 27 $29,734 $18,893 $11,065 $613 Food&Beverage 37 66 40 21 $8,444 $20,435 $2,898 $6,796 Forestry&Paper 6 19 18 5 $302 $7,183 $1,437 $1,000 Government 1 5 1 – – $734 $31 – Healthcare 175 251 175 67 $14,696 $41,664 $17,453 $11,110 HoldingCompanies 6 12 9 3 $65 $618 $984 – Insurance 24 27 51 27 $3,617 $4,428 $5,142 $1,103 Leisure&Recreation 32 35 27 15 $4,781 $3,465 $6,495 $4,820 Machinery 34 40 44 25 $2,133 $4,332 $3,653 $1,688 Metal&Steel 26 41 39 19 $689 $6,318 $1,265 $919 Mining 7 7 16 4 $195 $540 $4,726 $749 Oil&Gas 38 69 53 20 $3,927 $30,647 $18,108 $14,731 ProfessionalServices 174 224 265 124 $5,752 $19,440 $13,714 $6,055 Publishing 40 39 34 11 $2,167 $653 $6,663 $1,394 RealEstate/Property 22 26 35 14 $3,867 $2,758 $15,088 $2,234 Retail 51 65 73 28 $3,948 $12,450 $9,033 $13,877 Telecommunications 60 83 59 42 $8,232 $18,577 $13,409 $2,888 Textile 5 19 20 2 $228 $3,995 $1,448 $257 Transportation 30 36 42 19 $2,259 $3,815 $4,403 $1,436 Utility&Energy 51 52 48 21 $6,696 $16,897 $4,032 $2,094 Total 1,452 1,920 1,734 769 $139,836 $287,963 $207,733 $95,544 Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker U.S. M&A Activity 15

William Blair & Company

Transaction Participants and Considerations

• Acquisition activity by public companies has decelerated, as public companies’ share of activity over trailing‐12‐months is down to 24.5%, compared with 27.7% in 2011. • Private companies remain the most attractive targets (64.6%), while trailing‐12‐months’ frequency of divestitures has remained constant compared to 2011 • In transaction considerations, cash continues to account for a majority (72.2%) of financing all transactions, up from 59.3% in 2009.

U.S. MiddleMarket M&A Activity by Acquirer(1)

Percent of Deals Private Public Private Equity Foreign

75.0%

50.0%

25.0%

0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

Private 28.3% 29.2% 32.4% 29.1% 27.3% 36.3% 37.7% 36.6% 44.6% 40.5% 42.0% 48.4%

Public 48.9% 46.8% 43.7% 44.8% 40.3% 32.3% 30.1% 29.9% 24.9% 28.3% 27.7% 24.5%

Private Equity 8.3% 10.9% 13.9% 15.3% 18.1% 17.7% 16.9% 15.5% 14.2% 14.7% 14.0% 12.6%

Foreign 14.5% 13.2% 10.1% 10.8% 14.3% 13.7% 15.3% 18.0% 16.3% 16.5% 16.2% 14.5% Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

U.S. MiddleMarket M&A Activity by Target(1)

Percent of Deals Private Public Private Equity Divestiture

75.0%

50.0%

25.0%

0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

Private 49.6% 48.8% 42.9% 52.3% 63.9% 67.2% 69.0% 64.3% 60.7% 65.8% 63.0% 64.6%

Public 7.4% 6.2% 6.3% 4.1% 3.9% 3.3% 3.7% 4.3% 3.8% 4.5% 2.8% 2.3%

Private Equity 3.4% 3.9% 5.3% 6.5% 6.9% 6.0% 5.9% 5.0% 5.1% 6.2% 5.5% 4.7%

Divestiture 39.7% 41.1% 45.5% 37.1% 25.2% 23.5% 21.4% 26.5% 30.4% 23.5% 28.7% 28.4% Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 16 U.S. M&A Activity

William Blair & Company

Distressed U.S. M&A Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 500 399 $100 323 332 400 272 $80 300 163 197 187 $60 102 200 47 51 76 125 73 $40 100 $20 0 $0 Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012 of Deals

>$750M 10 10 13 13 2 2 5 13 22 11 11 10 3

Middle Market 102 230 246 132 27 23 33 50 181 123 71 38 24

Undisclosed 51 83 73 52 18 26 38 62 196 138 105 54 46

Deal Value $31.7 $49.0 $46.0 $30.0 $8.7 $6.0 $18.2 $59.3 $85.4 $89.9 $35.4 $25.6 $7.8 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

U.S. TakePrivate Transaction Activity

Number of Deals Middle Market >750M Deal Value Deal Value 78 73 ($ in billions) 90 68 71 $300 61 59 56 46 38 60 43 37 $200 28 23 30 $100 0 $0 Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012 of Deals

>750M 4 5 4 12 16 33 38 7 2 20 16 7 21

Middle Market 64 56 74 31 30 38 35 31 35 39 40 21 2

Deal Value $12.8 $13.5 $12.1 $35.4 $69.2 $276.0 $270.3 $16.2 $12.0 $57.0 $49.1 $22.6 $6.6 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Transaction Consideration

Percent of Deals Stock Only Cash Only Cash/Stock Other 80.0% 60.0% 40.0% 20.0% 0.0% Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM of Deals

Stock Only 29.4% 23.1% 26.7% 20.2% 19.4% 21.7% 13.2% 13.9% 18.7% 15.0% 14.9% 12.7%

Cash Only 44.7% 57.8% 56.5% 59.0% 61.2% 65.7% 72.3% 75.3% 59.3% 66.5% 71.0% 72.2%

Cash/Stock 23.2% 13.1% 14.8% 19.6% 18.4% 11.2% 12.9% 9.5% 19.5% 14.4% 11.8% 13.1%

Other 2.7% 5.9% 2.0% 1.2% 1.0% 1.4% 1.6% 1.3% 2.5% 4.0% 2.3% 2.0% Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker U.S. M&A Activity 17

William Blair & Company

Industry Breakdown

Transaction Activity by Target Sector

2009 2010 2011 1H 2012

Transactions MidMkt Total MidMkt Total MidMkt Total MidMkt Total Aerospace 11 35 11 30 14 44 4 25 Agribusiness 7 40 15 45 8 37 5 21 Auto/Truck 44 116 47 139 44 141 15 96 Chemicals 48 139 87 176 60 175 21 109 Computers & Electronics 831 1,663 1,310 2,312 981 2,023 556 1,236 Construction/Building 49 207 74 260 60 268 21 176 Consumer Products 53 155 70 181 90 272 32 147 Defense 1 2 6 10 8 11 3 6 Dining & Lodging 40 72 71 129 114 192 57 132 Finance 167 559 245 646 196 568 100 304 Food & Beverage 39 132 80 206 70 211 26 135 Forestry & Paper 11 26 12 38 16 50 4 26 Government 3 7 7212142 6 Healthcare 540 961 810 1,247 506 1,120 241 558 Holding Companies 9 35 25 72 32 83 10 37 Insurance 23 137 47 171 29 235 10 128 Leisure & Recreation 44 112 56 144 46 146 33 115 Machinery 42 123 74 170 53 201 31 126 Metal & Steel 34 94 50 126 27 114 12 71 Mining 87 160 103 210 133 265 61 99 Oil & Gas 223 384 285 506 322 589 146 268 Professional Services 242 812 517 1,257 381 1,455 183 818 Publishing 90 234 109 236 60 233 19 109 Real Estate/Property 147 274 319 539 458 751 287 496 Retail 76 171 105 233 88 269 43 139 Telecommunications 152 308 176 315 121 262 52 147 Textile 6 23 13 35 18 53 6 22 Transportation 30 108 67 178 62 199 23 121 Utility & Energy 115 241 186 329 135 333 62 143 Total 3,164 7,330 4,977 9,961 4,134 10,314 2,065 5,816 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C., Mergers and Acquisitions market analysis.

Merger Tracker 18 U.S. M&A Activity

William Blair & Company

Transaction Value by Target Sector

2009 2010 2011 1H 2012 $ Volume (in millions) MidMkt Total MidMkt Total MidMkt Total MidMkt Total Aerospace $914 $1,916 $385 $3,956 $903 $21,719 $819 $2,609 Agribusiness $272 $2,822 $388 $388 $410 $410 $611 $611 Auto/Truck $1,762 $14,293 $3,040 $7,123 $3,460 $9,555 $1,647 $5,136 Chemicals $2,939 $5,814 $6,199 $17,410 $3,619 $41,569 $850 $6,369 Computers & Electronics $23,689 $65,772 $35,515 $88,119 $41,853 $112,400 $21,912 $64,066 Construction/Building $2,930 $7,189 $6,910 $10,174 $2,731 $6,585 $768 $1,863 Consumer Products $2,400 $8,754 $3,914 $12,089 $5,256 $12,387 $1,477 $1,477 Defense $242 $242 $426 $1,874 $909 $909 $520 $520 Dining & Lodging $2,738 $2,738 $5,313 $15,036 $9,790 $11,565 $4,238 $8,644 Finance $14,481 $90,951 $21,276 $44,137 $13,916 $37,154 $7,588 $10,032 Food & Beverage $3,536 $20,307 $5,006 $39,018 $5,349 $6,217 $4,078 $26,073 Forestry & Paper $870 $2,971 $1,222 $7,220 $2,250 $11,817 $1,769 $2,769 Government $13 $13 $493 $493 $42 $42 $40 $40 Healthcare $26,396 $179,719 $36,080 $125,454 $37,459 $156,873 $15,519 $57,901 Holding Companies $363 $363 $1,834 $1,834 $2,299 $2,299 $402 $402 Insurance $2,288 $8,087 $8,111 $29,151 $4,330 $14,041 $2,467 $3,226 Leisure & Recreation $2,106 $6,489 $5,048 $6,773 $4,338 $7,703 $3,742 $9,792 Machinery $2,577 $3,877 $3,013 $16,855 $5,778 $11,524 $3,524 $5,249 Metal & Steel $2,543 $3,393 $4,921 $8,360 $4,489 $5,407 $2,721 $2,721 Mining $2,814 $5,736 $2,745 $6,832 $2,505 $21,788 $1,654 $1,654 Oil & Gas $18,547 $77,235 $30,974 $113,607 $31,888 $119,047 $15,778 $49,443 Professional Services $10,589 $13,901 $14,861 $36,572 $15,651 $20,660 $9,988 $11,713 Publishing $1,580 $11,031 $2,975 $5,708 $2,978 $6,934 $626 $1,876 Real Estate/Property $10,650 $15,575 $24,648 $55,991 $39,114 $83,017 $19,832 $42,747 Retail $5,955 $7,184 $4,428 $15,004 $6,754 $11,598 $2,922 $9,991 Telecommunications $11,410 $91,252 $9,140 $51,058 $7,850 $41,941 $2,977 $9,190 Textile $593 $593 $1,200 $1,200 $865 $865 $410 $410 Transportation $2,177 $39,443 $3,936 $14,762 $3,893 $12,086 $2,835 $2,835 Utility & Energy $9,732 $13,769 $19,301 $79,045 $14,454 $114,901 $5,076 $17,189

Total $167,108 $701,429 $263,300 $815,244 $275,136 $903,017 $136,791 $356,547

Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker U.S. M&A Activity 19

William Blair & Company

CrossBorder Transaction Analysis

• The overall market over the trailing‐12‐months favors the outbound over inbound transactions 58% to 42%, in line with historical averages of 60% to 40%.

• For the middle market in the trailing‐12‐months, outbound and inbound transactions reported 54% to 46%, respectively.

• The top country targeted by U.S. buyers during first quarter 2012 was Canada, followed by the United Kingdom and Australia. In addition, computer and electronics and professional services were the most attractive acquisition foreign sectors for U.S. buyers.

U.S. MiddleMarket CrossBorder M&A by Number of Deals

Number of Deals Outbound Inbound Inbound Deal Value Outbound Deal Value Deal Value ($ in billions) 2,500 $120 2,222 2,078 2,128 1,949 2,000 $100 2,000 1,645 $80 1,432 1,437 1,457 1,450 1,500 1,376 1,467 1,433 1,280 1,267 1,257 1,090 $60 1,011 993 1,046 1,057 1,000 836 783 $40 617

500 $20

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

of Deals Inbound

Middle Market 565 431 359 424 529 516 623 751 557 644 732 643

Undisclosed 446 405 258 359 517 751 844 682 500 613 725 807

Value $38.1 $29.4 $23.3 $37.5 $42.5 $56.6 $64.7 $51.8 $36.0 $50.4 $54.4 $49.8

Outbound

Middle Market 668 539 512 674 729 831 1,064 1,089 729 923 918 752

Undisclosed 764 551 481 606 647 814 1,014 1,039 708 1,026 1,304 1,248

Value $48.2 $34.2 $37.5 $55.9 $58.0 $72.0 $102.8 $88.8 $46.7 $71.9 $74.8 $61.1 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 20 U.S. M&A Activity

William Blair & Company

U.S. CrossBorder M&A – Number of Transactions

Inbound Outbound Total

2010 2011 1H 2012 2010 2011 1H 2012 2010 2011 1H 2012 Middle Market 646 735 291 926 925 335 1,572 1,660 626 > 750M 51 43 21 47 55 26 98 98 47 Undisclosed 609 734 421 1,032 1,306 598 1,641 2,040 1,019 Total 1,306 1,512 733 2,005 2,286 959 3,311 3,798 1,692

U.S. CrossBorder M&A – Transaction Value

Inbound Outbound Total

2010 2011 1H 2012 2010 2011 1H 2012 2010 2011 1H 2012 Middle Market $50,740 $54,297 $21,577 $72,485 $74,574 $28,652 $123,226 $128,871 $50,229 > 750M $159,489 $103,556 $53,937 $82,324 $117,946 $58,555 $241,813 $221,501 $112,491 Undisclosed – – – – – – – – – Total $210,230 $157,853 $75,514 $154,810 $192,520 $87,207 $365,039 $350,372 $162,721

U.S. CrossBorder M&A – 1H 2012

Inbound to U.S. Outbound from U.S.

Target Industry Deals Acquirer Country Deals Target Industry Deals Target Country Deals Computers & Electronics 140 Canada 205 Computers & Electronics 181 Canada 159 Professional Services 79 United Kingdom 112 Professional Services 144 United Kingdom 134 Healthcare 74 Japan 80 Healthcare 71 Australia 62 Oil & Gas 65 Germany 41 Mining 50 Brazil 60 Mining 50 France 39 Real Estate/Property 49 Germany 55 Chemicals 31 Australia 38 Oil & Gas 42 France 44 Finance 29 China 26 Finance 41 India 42 Utility & Energy 28 Switzerland 20Machinery 41 China 33 Consumer Products 23 India 19 Construction/Building 35 Israel 28 Food & Beverage 23 South Korea 13 Telecommunications 32 Netherlands 24

U.S. CrossBorder M&A – 2011

Inbound to U.S. Outbound from U.S.

Target Industry Deals Acquirer Country Deals Target Industry Deals Target Country Deals Computers & Electronics 276 Canada 481 Computers & Electronics 472 Canada 352 Professional Services 170 United Kingdom 188 Professional Services 297 United Kingdom 258 Healthcare 139 Japan 125 Healthcare 168 China 164 Mining 139 Australia 82 Finance 144 India 134 Oil & Gas 138 Germany 81 Mining 136 Germany 111 Real Estate/Property 84 France 58 Machinery 85 Australia 100 Utility & Energy 51 China 57 Oil & Gas 85 France 73 Food & Beverage 46 Switzerland 45 Construction/Building 82 Brazil 66 Consumer Products 41 India 36 Real Estate/Property 78 Japan 54 Finance 41 South Korea 34 Chemicals 70 Spain 49

Merger Tracker U.S. M&A Activity 21

William Blair & Company

U. S. Debt Capital and Private Equity / Venture Capital Markets

1H 2012 Update

Interest Rates

5‐Year TSY 10‐Year TSY 3M LIBOR 4.0%

3.0%

2.0% 1.67%

1.0% 0.72% 0.46% 0.0% Jun‐11 Jul‐11 Aug‐11 Sep‐11 Oct‐11 Nov‐11 Dec‐11 Jan‐12 Feb‐12 Mar‐12 Apr‐12 May‐12 Jun‐12

1Yr Ago 6 Mos Ago 3 Mos Ago 1 Mo Ago Current 3‐Month LIBOR 0.25% 0.58% 0.47% 0.47% 0.46% 5‐Year Treasury 1.76% 0.83% 1.04% 0.69% 0.72% 10‐Year Treasury 3.18% 1.89% 2.28% 1.63% 1.67% Source: Bloomberg, as of March 30, 2012.

Leveraged Loan Statistics

3Q11 4Q11 1Q12 2Q12 Credit Statistics MiddleMarket Corporate: Senior Leverage 4.2x 3.8x 3.4x 3.9x Total Leverage 4.6x 4.8x 3.8x 4.2x EBITDA / Cash Interest 3.5x 3.5x 3.5x 3.3x MiddleMarket LBO: Senior Leverage 4.1x 3.7x 3.5x 3.8x Total Leverage 4.6x 4.8x 4.1x 4.5x EBITDA / Cash Interest 2.8x 2.4x 3.4x 3.1x Middle Market Spreads 533.3 535.0 515.0 534.4

Default Rate 12‐Month Default Rate by # of Loans 0.6% 0.6% 0.6% 1.0% Source: S&P’s LCD.

Merger Tracker 22 U. S. Debt Capital and Private Equity / Venture Capital Markets

William Blair & Company

MiddleMarket Leveraged Loan Volume

($ in billions)

$14 $13

$12

$10 $8 $8

$6 $5 $5 $5 $4 $4 $4 $3 $3 $3 $2 $2 $2 $2 $2 $2 $1 $2 $2 $1 $1 $0 $1 $0 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q4101Q112Q113Q114Q111Q122Q12

Source: S&P’s LCD.

Highlighted Transactions

Senior / Structure / Total Company Business Description Sponsor Pricing Leverage Comments Ferrara Candy Manufactures confections Catterton $125 million Revolver 3.3x / 3.3x Proceeds back the merger of Company and candies. Partners $425 million Term Farley's & Sathers and Ferrara Pan L + 625; 1.25% Floor Candy Trident USA Provides mobile x‐ray and Audax Group/ $42.5 million Revolver 2.9x / 4.3x Proceeds refinanced existing debt Health Services, laboratory services to the Frazier $175 million 1st Lien Term and backed a roughly $130 million LLC long‐term care industry. Healthcare $89 million 2nd Lien Term dividend to investors. Ventures L + 525; 1.25% Floor (1st) L + 1,050; 1.25% Floor (2nd) Schrader, Inc. Manufactures tire‐ Madison $35 million Revolver 3.1x / 4.4x The facilities financed the LBO of pressure‐monitoring Dearborn $235 million 1st Lien Term Schrader to Madison Dearborn systems, valve products Partners $100 million 2nd Lien Term Partners and tire hardware. L + 500; 1.25% Floor (1st) L + 925; 1.25% Floor (2nd) Osmose Holdings Provider of wood‐ Oaktree Partners $45 million Revolver 3.7x / 3.7x The facilities financed the LBO of preservation‐treatment $255 million Term Osmose Holdings to Oak Tree chemicals, and utility and L + 525; 1.25% Floor Partners railroad‐infrastructure services. Source: S&P’s LCD

Merger Tracker U. S. Debt Capital and Private Equity / Venture Capital Markets 23

William Blair & Company

Select 1H ‘12 MiddleMarket Leveraged Loan Transactions

($ in millions) Senior Structure Libor Total Borrower Sponsor(s) Industry Date Status Use Total RC TL Spread Leverage Endurance International Warburg Pincus Computers & 12‐Jun Closed Acquisition $155 $20 $135 625 4.0x Group Inc Electronics Consolidated Container Co Bain Capital Chemicals 12‐Jun Closed LBO $370 $0 $370 500 5.2x

U.S. Renal Care Inc Leonard Green Healthcare 12‐Jun Closed LBO $305 $0 $305 500 5.4x

LHP Hospital Group Inc CCMP Capital Advisors LLC Healthcare 12‐Jun Closed Acquisition $375 $100 $275 750 4.0x

eResearchTechnology Inc Genstar Capital Services & Leasing 12‐Jun Closed LBO $270 $50 $220 650 4.4x

Henry Company Inc Graham Partners Building Materials 12‐Jun Closed LBO $150 $20 $130 525 4.9x

LANDesk Software Inc Thoma Bravo LLC Computers & 12‐May Closed Acquisition $220 $15 $205 575 4.0x Electronics ConvergeOne LLC Genstar Capital Services & Leasing 12‐May Closed Recap/Dividend $175 $20 $155 700 3.8x

Pelican Products Inc Behrman Capital Manufacturing & 12‐May Closed LBO $380 $30 $350 550 4.7x Machinery Securus Technologies Inc Castle Harlan Telecom 12‐May Closed Recap/Dividend $331 $40 $291 525 5.3x

Source: S&P’s LCD

HighYield Volume – Transactions Less Than $300 Million

($ in billions)

$20 $18 $16 $16 $16 $15 $13 $14 $12 $13 $12 $12 $10 $11 $10 $10 $7 $8 $5 $3 $3 $3 $4 $2 $2 $1 $0 $0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Source: S&P’s LCD

Yields of New Issue Senior Unsecured Bonds

15% BB B

NA due to 10% little market NA activity 6.66%

5% 6.69% for May NA for June

0% Jun‐07 Dec‐07 Jun‐08 Dec‐08 Jun‐09 Dec‐09 Jun‐10 Dec‐10 Jun‐11 Dec‐11 Jun‐12

Source: S&P’s LCD; Jan‐12 B‐rated data not available due to limited market activity

Merger Tracker 24 U. S. Debt Capital and Private Equity / Venture Capital Markets

William Blair & Company

Recent HighYield Transactions – Less Than $300 Million

($ in millions) Date Name Industry Purpose SP Moody’s Size Issue Market Years YTM Spread

Jun‐12 Consolidated Container Co Chemicals LBO CCC+ Caa1 $250 Senior Notes 144a life 8 10.13% 855

Jun‐12 Navios Maritime Holdings Inc Transportation Refinancing BB‐ Ba3 $88 Add‐on Secured 144a 5 8.87% 803

Jun‐12 Sonic Automotive Inc Retail Refinancing B+ B3 $200 Senior Subordinated Notes 144a 10 7.13% 552

Jun‐12 P.F. Chang's Bistro Inc Restaurants LBO CCC+ Caa1 $300 Senior Notes 144a life 8 10.38% 904

Jun‐12 Calumet Specialty Products Oil & Gas Acquisition B B3 $275 Senior Notes 144a 8 9.94% 872

Jun‐12 Sappi Papier Holding Forest Product Refinancing BB Ba2 $300 Secured 144a life 7 8.38% 727

Jun‐12 Norbord Inc Forest Product Refinancing BB‐ Ba2 $165 Secured 144a 3 6.25% 589

Jun‐12 Fifth & Pacific Companies Retail Acquisition B B2 $152 Add‐on Secured 144a 7 8.86%

May‐12 Advanced Lighting Home Furnishings Recap/Stock NR NR $167 Senior Secured Notes 144a life 7 11.02% Technologies Inc Repurchase May‐12 Carrols Restaurant Group Restaurants Acquisition B‐ B3 $150 2nd lien 144a 6 11.25% 1028

May‐12 Roofing Supply Group LLC Building Materials LBO CCC+ B3 $200 Senior Notes 144a 8 10.00% 863

May‐12 Mastro's Restaurant Restaurants Refinancing B‐ Caa1 $102 Senior Secured Notes 144a life 5 12.00%

May‐12 Momentive Performance Chemicals Refinancing B‐ B2 $250 Senior Secured Notes 144a 8 10.00% 868 Materials Inc Source: S&P’s LCD

Merger Tracker U. S. Debt Capital and Private Equity / Venture Capital Markets 25

William Blair & Company

Equity Investment Into VCBacked Companies

($ in billions)

$10 $8 $8 $8 $8 $7 $7 $8 $7 $7 $6 $6 $6 $6 $6 $5 $5 $5 $5 $4 $4

$0 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q111Q12

Source: PricewaterhouseCoopers/National Venture Capital Association

Selected EarlyStage Private Equity and Venture Capital Transactions

Investment Date Target Name Business Description Investor Amount Comments 3/28/2012 Relievant Medsystems, Inc. Developer of therapeutic solutions to Canaan Partners; $30.0 Series D round of funding for the treat lower back pain. Morgenthaler; New Enterprise company. Associates; Onset 3/26/2012 Blu Homes, Inc. Housing company that designs and Skagen AS; Brightpath Capital $25.0 This funding round brings total builds energy‐efficient and Partners, LP investment in the company to $50 prefabricated homes in Colorado, million since its inception in 2007. Utah, Rhode Island, and Massachusetts. 3/25/2012 Duda Mobile, Inc. Designer and developer of a mobile Pitango Venture Capital $6.0 Series B round of funding; total website creation platform that investment to date is $8.3 million. facilitates conversion of websites into mobile‐optimized sites. 3/15/2012 BOKU, Inc. A mobile payment platform that Benchmark Capital; New $35.0 The round of funding included enables consumers to purchase goods Enterprise Associates; Index new investors New Enterprise and services with wireless phone Ventures; Kosla Ventures; DAG Associates and Telefonica Ltd. numbers. Ventures, LLC; Andreessen Total investment to date is $75 Horowitz; Telefonica Digital million. 3/14/2012 Primus Green Energy Ltd. Developer of a thermal‐chemical IC Green Energy Ltd. $12.0 Series C round of funding; the conversion process that produces bio‐ company has raised $40 million to gasoline and bio‐jet fuels. date. 3/8/2012 Songkick.com, Inc. Operator of an online portal that Sequoia Capital; Index $10.0 Series B round of funding; the tracks artists, venues, festivals, and Ventures; Business Accelerator company has raised $16.5 million concerts. Ltd; SoftTech VC to date. 2/29/2012 SugarSync, Inc. Provider of mobile cloud services that Draper Fisher Jurvetson; Sigma $15.0 Series D round of funding enable users to access their data from Partners; Hatteras Venture included new investor Coral various devices. Partners; Hercules Technology Group. The company has raised Growth Capital; Coral Group $50 million to date. 2/21/2012 Wheelz, Inc. Operates a car‐sharing platform that Zipcar, Inc.; Fontinalis Partners, $13.7 Series A round of funding for the connects students with cars to those LLC company. who need them. 2/14/2012 Black Sand Technologies, A fabless semiconductor company that Austin Ventures; North Bridge $10.0 Series C round of funding for the Inc. builds solutions for the wireless Venture Partners company. industry by combining sensitive analog and digital circuits in silicon. Sources: Buyouts magazine and Capital IQ

Merger Tracker 26 U. S. Debt Capital and Private Equity / Venture Capital Markets

William Blair & Company

European M&A Activity

Transaction Detail

• The total number of announced European transactions for the first half was 7,096, a substantial decline of 20.3% from the year‐ ago period, which was in line with 20.8% second‐quarter decline (3,506) and below the trailing‐12‐months’ quarterly average of 3,796. • Second quarter dollar volume declined 14.9% from the year‐ago period, with total dollar volume at $239.6 billion, well below the quarterly average of $303.9 billion. • European middle‐market deal activity was down 16.5%, while dollar volume declined significantly to $165.5 billion, or a 21.1% decrease from the year‐ago period.

European M&A Activity Detail

Number Of Deals Deal Value % Chg. % Chg. 2010 2011 2012 ’12 vs. '11 2010 2011 2012 ’12 vs. '11

2Q < $50M 955 895 720 (19.6%) $10,771 $10,692 $8,218 (23.1%) $50M‐$250M 277 321 256 (20.2%) 32,556 37,873 30,166 (20.3%) $250M‐$750M 97 139 119 (14.4%) 40,400 59,905 49,545 (17.3%) Total MiddleMarket 1,329 1,355 1,095 (19.2%) $83,726 $108,471 $87,930 (18.9%) Quarterly Average 1,281 1,317 1,223 (7.1%) 80,783 98,502 85,933 (12.8%) > 750M 61 69 62 (10.1%) 129,507 173,219 151,651 (12.5%) Undisclosed 2,693 3,005 2,349 (21.8%) – – – – Total Deals 4,083 4,429 3,506 (20.8%) $213,234 $281,690 $239,581 (14.9%) Quarterly Average 3,831 4,068 3,796 (6.7%) $300,168 $367,497 $303,902 (17.3%)

1H < $50M 1,814 1,805 1,553 (14.0%) $19,628 $22,059 $16,673 (24.4%) $50M‐$250M 544 615 461 (25.0%) 62,967 72,044 54,814 (23.9%) $250M‐$750M 196 260 224 (13.8%) 80,815 115,757 94,006 (18.8%) Total MiddleMarket 2,554 2,680 2,238 (16.5%) $163,410 $209,859 $165,492 (21.1%) > 750M 112 140 110 (21.4%) $275,008 $327,686 $300,983 (8.1%) Undisclosed 5,323 6,086 4,748 (22.0%) – – – – Total Deals 7,989 8,906 7,096 (20.3%) $438,417 $537,545 $466,475 (13.2%)

LTM < $50M 3,688 3,594 3,415 (5.0%) $41,394 $43,335 $37,257 (14.0%) $50M‐$250M 1,056 1,183 1,037 (12.3%) 122,405 137,453 122,331 (11.0%) $250M‐$750M 380 491 441 (10.2%) 159,333 213,219 184,146 (13.6%) Total MiddleMarket 5,124 5,268 4,893 (7.1%) $323,133 $394,007 $343,734 (12.8%) > 750M 195 273 234 (14.3%) $877,541 $1,075,982 $871,874 (19.0%) Undisclosed 10,003 10,732 10,058 (6.3%) – – – – Total Deals 15,322 16,273 15,185 (6.7%) $1,200,673 $1,469,989 $1,215,608 (17.3%) Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker European M&A Activity 27

William Blair & Company

European M&A Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 20,000 $2,400 16,988 16,194 15,364 13,801 15,534 14,935 15,000 13,411 $1,800 12,844 11,494 10,640 10,032 10,000 8,906 $1,200 7,096

5,000 $600

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>750M 328 172 149 197 289 391 537 334 175 253 257 140 110

Middle Market 5,722 5,130 4,657 4,925 5,938 6,247 6,659 6,543 5,008 5,142 5,335 2,680 2,238

Undisclosed 7,361 6,192 5,226 5,518 6,617 7,163 8,338 9,317 9,752 9,969 11,396 6,080 4,748

Deal Value $678 $638 $625 $839 $1,226 $1,701 $2,278 $1,370 $731 $977 $943 $538 $466 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

European MiddleMarket M&A Activity

Number of Deals <$50M $50‐250M Deal Value $250‐750M Deal Value ($ in billions) 8,000 $800

7,000 $700 6,247 6,659 6,543 5,722 5,938 6,000 5,335 $600 5,130 4,925 5,008 5,142 4,657 5,000 $500

4,000 $400 2,680 3,000 2,238 $300 2,000 $200

1,000 $100

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

$250‐750M 306 296 291 401 494 628 787 580 310 427 477 260 224

$50‐250M 892 865 929 1,150 1,389 1,575 1,860 1,563 940 1,112 1,191 615 461

<$50M 4,524 3,969 3,437 3,374 4,055 4,044 4,012 4,400 3,758 3,603 3,667 1,805 1,553

Deal Value $275 $265 $268 $350 $421 $509 $609 $493 $283 $348 $388 $210 $165 Note: Middle‐Market defined as deal value under $750 million. Source: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker 28 European M&A Activity

William Blair & Company

Valuation Multiples

• The median enterprise‐value‐to‐EBITDA multiple for all European transactions remained relatively flat compared with 2011. The overall market multiple stands at 9.5 times for the last 12 months, down from 10.8 times in 2011. • Middle‐market deals over the last 12 months have reported a median enterprise‐value‐to‐EBITDA multiple of 9.3 times, down from 10.7 times in 2011.

European EV/EBITDA Valuation Multiples

20.0x Middle Market Overall Market

10.0x

0.0x 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

Middle Market 8.2x 8.2x 8.8x 8.9x 9.6x 10.0x 9.9x 9.3x 7.2x 8.2x 10.7x 9.3x

Overall Market 8.5x 8.7x 8.9x 9.0x 10.2x 10.8x 11.7x 9.9x 7.2x 8.3x 10.8x 9.5x Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

European EV/EBITDA MiddleMarket Valuation Multiples

20.0x < $50M $50M‐$250M $250M‐$750M

10.0x

0.0x 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM Size < $50M 7.8x 7.4x 8.7x 7.7x 7.4x 8.5x 8.7x 8.6x 5.3x 7.7x 9.6x 8.8x $50M‐$250M 8.9x 8.6x 7.8x 9.3x 9.8x 9.7x 10.4x 7.4x 7.7x 8.2x 11.1x 9.3x $250M‐$750M 9.3x 9.7x 10.3x 9.6x 12.9x 12.1x 11.0x 11.7x 9.9x 8.2x 11.2x 10.1x Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

European MiddleMarket Median Acquisition Premiums

1‐Week Premium 4‐Week Premium 40.0% 30.0% 20.0% 10.0% 0.0% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 LTM

1‐Week Premium 23.4% 23.4% 16.8% 17.2% 15.8% 14.4% 18.6% 28.6% 23.0% 22.8% 29.6% 28.5%

4‐Week Premium 26.6% 23.5% 21.4% 19.2% 20.9% 17.3% 22.2% 30.0% 28.4% 25.3% 33.6% 33.2% Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker European M&A Activity 29

William Blair & Company

PrivateEquity Transaction Analysis

European PrivateEquity Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 3,000 $800 1,955 1,737 1,689 1,679 1,509 $600 2,000 1,276 1,434 1,107 1,028 1,089 1,176 807 $400 1,000 539 $200 0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 16 22 25 43 58 68 100 51 20 43 55 31 20

Middle Market 592 563 567 645 744 711 756 606 434 486 460 247 165

Undisclosed 499 443 497 588 887 958 1,099 1,022 722 905 994 529 354

Deal Value $56 $68 $86 $144 $193 $240 $284 $161 $77 $139 $162 $105 $58 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Average Total Equity Contribution

53.1% 60.0% 50.6% 48.0% 50.0% 44.7% 35.9% 37.4% 37.6% 38.6% 37.3% 35.9% 40.0% 33.7% 33.7% 33.6% 30.0% 20.0% 10.0% 0.0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(1) Total equity equals common, preferred, and rollover equity. Source: S&P’s Leveraged Lending Review

Average Debt Multiples of LBO Loans

Senior Debt/EBITDA Non‐Senior Debt/EBITDA 8.0x 6.6x 5.8x 5.9x 5.5x 5.6x 5.3x 6.0x 4.8x 4.9x 1.0x 5.1x 4.7x4.7x 4.4x 4.4x 4.5x 4.7x 1.0x 4.5x 4.6x 4.2x 4.2x4.3x 4.0x 4.1x 1.0x 1.2x 1.1x 4.0x 4.0x4.5x 0.4x 0.7x 1.2x 1.1x 3.9x 1.2x 0.9x 1.1x 1.1x 0.5x 4.0x 0.6x 0.8x 0.7x 0.7x 0.6x 1.0x 0.7x 0.6x1.3x 0.4x 5.6x 4.7x 4.9x 2.0x 4.3x 4.2x 4.5x 4.4x 3.9x 4.2x 4.1x 4.0x 4.3x 3.5x 3.6x 3.6x3.5x 3.6x 3.4x3.4x 3.4x 3.6x 3.6x 3.7x 3.4x 3.2x 3.5x

0.0x 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Left Column – Less Than €50 million EBITDA Right Column – More Than €50 million EBITDA Source: S&P’s Leveraged Lending Review

Merger Tracker 30 European M&A Activity

William Blair & Company

Emerging Markets M&A Activity

Latin American M&A Activity

Deal Value Number of Deals Undisclosed Middle Market >$750M Deal Value ($ in billions) 1,500 1,421 $300 1,209 1,250 1,131 1,110 $250 1,020 916 1,000 $200 713 750 648 643 $150 566 558 508 537 500 $100

250 $50

0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 9 13 9 13 13 29 33 36 29 58 41 9 26

Middle Market 310 196 288 327 307 437 677 601 465 641 736 309 394

Undisclosed 329 299 240 226 238 247 421 572 526 411 644 325 496

Deal Value $48 $38 $30 $59 $48 $126 $106 $111 $90 $243 $143 $35 $100 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Asian M&A Activity

Number of Deals Undisclosed Middle Market >$750M Deal Value Deal Value ($ in billions) 15,958 15,752 15,328 16,000 14,364 $900 13,745 14,000 12,741 $800 $700 12,000 10,144 $600 10,000 7,189 7,308 $500 8,000 6,876 5,893 5,213 5,327 $400 6,000 $300 4,000 $200 2,000 $100 0 $0

Number 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2011 1H 2012

of Deals

>$750M 50 50 47 86 105 155 195 133 108 160 163 65 68

Middle Market 3,254 3,776 3,593 5,071 7,237 9,278 11,760 11,427 10,094 10,195 10,581 4,893 4,602

Undisclosed 1,909 2,067 1,687 2,032 2,802 3,308 4,003 4,192 3,543 4,009 4,584 2,350 2,206

Deal Value $253 $249 $226 $398 $521 $670 $827 $672 $545 $695 $772 $273 $316 Note: Middle‐Market defined as deal value under $750 million. Sources: Dealogic and William Blair & Company, L.L.C. Mergers and Acquisitions market analysis

Merger Tracker Emerging Markets M&A Activity 31

William Blair & Company

Select William Blair & Company Transactions

Deal Close Date Blair Client Client Description Transaction Description Value

($ in millions) 07/19/12 LTI Boyd Corporation A leading designer and manufacturer of custom Sale to Snow Phipps Group, LLC a middle market ND fabricated sealing and energy management solutions. private equity firm.

07/17/12 Navtrak, Inc. A leading provider of on‐demand mobile workforce Sale to Telogis, Inc., a premium provider of location ND software and technology solutions for delivery, field based services to enterprises across the global. services, and sales businesses with mobile employees.

07/06/12 DataSource, Inc. Leading national provider of supply chain Sale to Inverness Graham Investments, an ND management. operationally‐focused, lower middle market private equity firm.

07/02/12* EasyLink Services Provider of business messaging and transaction Sale to Open Text Corp., an enterprise software $310.0 International services. company and leader in enterprise content Corporation management.

06/29/12* QuickPlay Media, Inc. Leading provider of managed solutions for the Sale to Madison Dearborn Partners, LLC, a leading ND distribution of premium video to mobile and IP‐ private equity investment firm based in Chicago, connected devices. Illinois.

06/27/12 Covergent Resources One of the largest receivables management Senior and subordinated debt financing to refinance ND Inc. companies in the United States. existing debt and support growth initiatives. 06/15/12 Prommis Solutions Provides technology‐enabled processing services for Recapitalization with its existing lenders through a ND the default resolution sector of the residential strict foreclosure under Article 9 of the Uniform mortgage industry. Commercial Code. 06/19/12 Progreso Financiero Leading financial services company serving the needs Debt financing used to refinance debt and support ND of the growing Hispanic market. the company’s growth. 06/20/12 Ferra Candy Company, Leading manufacturer and distributor of quality Debt financing related to its merger with Ferrara ND Inc. confectionery products. Pan Candy Company, Inc. 05/29/12 I DRIVE SAFELY, LLC A leader in innovative driver training services. Sale to Compass Partners, a New York‐based ND private equity firm. 05/22/12 MTS Medication MTS manufactures automated packaging machines Sale to Omnicell, Inc., a leading provider of $156.0 Technologies and related consumables. automation and business information solutions. 05/18/12 Emerald Performance Produces and markets technologically advanced Recapitalization and senior secured credit facilities $300.0 Materials LLC specialty chemicals. 05/16/12 Hemosphere, Inc. Engages in the development and commercialization Sale to Cryolife, Inc., a distributor of human tissue $21.5 of cardiovascular devices. for transplantation in the United States. 05/14/12* Source Healthcare Leading provider of information and analytics to the Sale to Symphony Technology Group, a private ND Analytics, LLC (Wolters pharmaceutical, biotech, and financial industries. equity firm, to combine with its existing portfolio Kluwer Health, Inc.) company ImPactRx, Inc. 05/09/12* Anvil Holdings Inc. Supplier of high‐quality basic T‐shirts and sports Sale to Gildan Activewear Inc., a marketer and $88.0 shirts for the printwear market. global low‐cost vertically integrated manufacturer of quality branded basic apparel. 05/03/12 CompuPay, Inc. Leading national provider of outsourced payroll Sale to BenefitMall, the largest general agency in ND processing and related services. the United States, through an equity financing led by Austin Ventures and including HarbourVest Partners, LLC. 05/03/12* AmniSure International Leading manufacturer and distributor of a diagnostic Sale to Qiagen N.V. a leading global provider of ND LLC tester for ruptured fetal membranes. Sample & Assay Technologies. 04/20/12* Pervasis Therapuetics, Leading clinical stage company developing a broad Sale to Shire plc, a leading specialty ND Inc. portfolio of biologically active therapeutics. biopharmaceutical company. 04/16/12 China GrenTech Leading developer of radio frequency (“RF”) Proposed merger with Talenthome Management $246.8 Corporation Limited technology and provider of wireless coverage Limited and Xing Sheng Corporation Limited, products and services in China. entities jointly owned by the company’s chairman and other members of the management team. * Represents cross‐border transaction. ND – Transaction value not disclosed.

Merger Tracker 32 Select William Blair & Company Transactions

William Blair & Company

Deal Close Date Blair Client Client Description Transaction Description Value

($ in millions) 04/16/12 Colson Group Holdings Leading designer, manufacturer, and distributor of Sale to Sentinel Capital Partners, LLC and CITIC ND (a Pritzker family casters, wheels, and related hardware products. Capital Partners, two leading private equity firms. divestiture) 04/06/12 Wholesome Sweeteners U.S. leader in organic, natural, and Fair Trade Sale to Arlon Food and Agriculture Partners, a ND Certified sweeteners. leading private equity firm specializing in buyouts and expansion capital. 04/05/12* Altor Equity Partners Leading private equity firm investing in Nordic Acquisition of Haarslev Industries, a cleantech ND businesses, committed to creating value through business manufacturing processing equipment for growth, strategic development, and operational organic by‐products. improvements. 03/31/12* Old World Chemicals (a Leading producer of ethylene oxide (EO) and ethylene Sale to Indorama Ventures PCL, one of the largest $795.0 division of Old World glycol (EG) globally, with crude EO capacity of vertically integrated polyester chain producers in Industries, Inc. / dba 435,000 tons per year. the world and a leading global manufacturer of PEAK) wool yarns. 03/30/12 Sleepy’s LLC Privately owned fourth‐generation specialty mattress Recapitalization including an equity investment ND retailer with more than 800 locations in 13 states. from Calera Capital and senior secured credit facilities agented by Credit Suisse Securities. 03/29/12* AMEOS AG and AMEOS Premier operator of acute general and psychiatric Sale to The Carlyle Group, one of the world’s ND Holding AG (Quadriga care hospitals in the DACH region. largest and most diversified multi‐product global Capital Ltd.) alternative asset management firms. 03/27/12* EirGen Pharma Limited Leading specialty pharmaceutical company engaged A strategic minority investment by SPIMACO, a ND in the identification, development, licensing, and leading producer of medicinal products and manufacture of high potency cytotoxic pharmaceutical formulations in the Kingdom of pharmaceutical products. Saudi Arabia and internationally. 03/14/12 ID Analytics, Inc. Leading provider of identity risk and fraud Sale to LifeLock, Inc., a leading provider of identity ND management solutions. theft protection. 03/09/12 BILO, LLC Leading grocery store operator serving customers Acquisition of WinnDixie Stores, Inc., a leading $560.0 throughout South Carolina, North Carolina, neighborhood grocer operating 482 stores Tennessee, and Georgia. throughout the southern United States. 03/01/12 Dealer Services Largest independent inventory financing provider of Sale to Manheim Automotive Financial Services, ND Corporation used vehicles and other diversified automotive Inc., a leading provider of inventory financing, products sold by dealers. receivables funding, retail financing, and insurance services. 02/17/12 Curtis Bay Energy Leading waste‐to‐energy medical waste processing Sale to Summer Street Capital Partners, LLC, a ND company. leading U.S.‐based private investment firm specializing in later stage investments, management buyouts, recapitalizations, and growth financing. 02/17/12 Jordan Reses Supply Premier national distributor of respiratory devices Recapitalization of the company, which provided a $45.0 Company and supplies. dividend to current owners and refinanced existing debt. 02/13/12 Linden Capital Partners Leading private equity firm focused exclusively on Acquisition of SeraCare, a global firm serving the $82.1 leverage buyouts in healthcare and life science life sciences industry. industries 01/19/12 Internet Pipeline, Inc. Leads its industry in providing the next‐generation A significant investment by Technology Crossover ND suite of sales distribution software to insurance and Ventures, a leading provider of growth capital to financial services markets. technology companies. 01/03/12* Z Corporation & VIDAR Leading provider of personal and professional 3D Sale to 3D Systems Corporation, a leading, global $135.5 Systems Corporation printers, 3D scanners, and proprietary print materials provider of 3D content‐to‐print solutions. (subsidiaries of Contex and services. Group A/S) 01/03/12* Lista U.S. Holding Co. Leading manufacturer of storage and workspace Sale to Stanley Black & Decker, Inc., a leading ND (North American systems. provider of power and hand tools as well as subsidiary of Lista AG, a electronic security and monitoring systems Capvis portfolio throughout the world. company) 12/31/11* Kobusch Sengewald (a Leading provider of high‐value, custom‐designed Sale to Sun Capital Partners, Inc., a leading U.S.‐ $247.0 subsidiary of Pregis plastic‐based flexible, semi‐rigid, and rigid packaging based private investment firm focused on leveraged Corporation owned by solutions. buyouts, equity, debt, and other investments. AEA Investors) 12/30/11 Tuthill Drive Systems The leading designer and manufacturer of Sale to HCI Equity Partners, a strategically focused ND hydraulically powered drive assist systems and steer private‐equity firm that targets growth‐oriented axles for on‐ and off‐highway vehicles, serving industrial product and service companies in the multiple end‐markets. lower middle market. * Represents cross‐border transaction. ND – Transaction value not disclosed.

Merger Tracker Select William Blair & Company Transactions 33

William Blair & Company

Deal Close Date Blair Client Client Description Transaction Description Value

($ in millions) 12/29/11 JanPro Franchising International franchisor of commercial cleaning Amendment to the company’s existing credit $30.1 International, Inc. services. facilities, consisting of a senior credit facility provided by Madison Capital Funding and NewStar Financial, as well as a new subordinated debt facility provided by Fidus Investors, Midwest Mezzanine Funds and Gemini Investors. 12/27/11 Jack Welch Offers leadership‐focused business online education, Sale to Strayer University, an education services ND Management Institute teaching immediately applicable principles and holding company that owns Strayer University and (Chancellor University) practices. certain other assets. 12/23/11 Metalmark Capital Leading private‐equity firm with particular focus and Acquisition of Hoffmaster Group, Inc., a leading N. ND competence in healthcare, energy and natural American designer, manufacturer, and supplier of resources, and industrials. decorated, premium disposable tableware. 12/15/11 CIBT Solutions, Inc. Leading global provider of expedited travel Sale to ABRY Partners, a media, communications, ND (American Capital) documents services. and business and information services focused private‐equity firm. 12/15/11 Risk Management The only fully integrated national risk management Sale to York Risk Services Group, Inc., a portfolio ND Solutions, Inc. provider serving the workers' compensation, auto, company of ABRY Partners. (dba Avizent) and general liability segments. (KRG Capital Partners) 12/01/11 Hexacomb Leader in engineered paper packaging solutions. Sale to Boise Inc., a manufacturer of a wide variety $125.0 (a divison of Pregis of paper and packaging products. Corporation owned by AEA Investors) 11/30/11 Giordano’s Enterprises, Owns and operates a chain of pizza restaurants in Sale of substantially all of the company’s assets to $61.6 Inc. Illinois and Florida. Victory Park Capital and Origin Capital pursuant to §363 of the Bankruptcy Code. 11/30/11 National Pretzel Leading private‐label supplier and branded producer Sale to ConAgra Foods, one of North America’s ND Company of pretzels and related products. leading food companies. 11/17/11 ACCO Brands One of the world's largest office supply Financial advisor to the board of directors of $860.0 Corporation manufacturers. ACCO Brands Corporation in connection with the company's pending merger with the Consumer & Office Products business of MeadWestvaco Corporation. 11/10/11 Sage Software Provider of software products for the healthcare Sale to private‐equity firm Vista Equity Partners. $320.0 Healthcare, LLC (a market in North America. subsidiary of The Sage Group, plc) 10/31/11 W.E. Bassett Company The leading supplier of beauty care implements and a Sale to Pacific World Corporation, a leading ND rapidly emerging supplier of foot care implements innovator and supplier of proprietary nail and and devices to retailers in the mass, drug, food, and beauty care products and a portfolio company of discount channels. Levine Leichtman Capital Partners. 10/24/11* China Advanced Supplier of ready‐mix concrete and related technical Exclusive financial advisor to the special committee $24.0 Construction Materials services for large‐scale infrastructure, commercial, of the board of directors in conjunction with its Group, Inc and residential developments, primarily in the proposed merger with Novel Gain Holdings People’s Republic of China. Limited and CACMG Acquisition, Inc., entities controlled by the company’s founders. 10/21/11 DANTOM Systems, Inc. The premier provider of value‐added business Sale to private‐equity firm Compass Partners. ND (Bolder Capital, an process outsourcing solutions serving the investment firm accounts receivable management and revenue affiliated with JZ Capital cycle management sectors. Partners Ltd. and The Edgewater Funds) 10/20/11* Great Expressions Leading U.S.‐based dental practice management Sale to OMERS Private Equity, a Canadian private‐ ND Dental Centers (Audax company with more than 150 dental practice equity firm. Group) locations across seven states. 10/18/11 The J.M. Smucker The leading marketer and manufacturer of fruit New issuance of Senior Notes used for general $400.0 Company spreads, retail packaged coffee, peanut butter, and corporate purposes. other consumer products. 10/10/11 Novel Labs, Inc. d.b.a. Market‐leading provider of secure, cloud‐based data Sale to Citrix Systems, Inc., a leading provider of ND ShareFile storage, sharing, and collaboration. virtual computing solutions. * Represents cross‐border transaction. ND – Transaction value not disclosed.

Merger Tracker 34 Select William Blair & Company Transactions

William Blair & Company

Deal Close Date Blair Client Client Description Transaction Description Value

($ in millions) 10/05/11* Europe's Best, Inc. (a Leading brand of all‐natural frozen fruit and Sale to The Hain Celestial Group, a leading natural ND subsidiary of The J.M. vegetable products in Canada. and organic products company in North America Smucker Company) and Europe. 09/30/11 Global Clinical Full‐service, globally integrated contract research Sale to AptivSolutions, a full‐service international ND Development (division organization (CRO) specializing in complex and CRO. of SRA International, challenging studies across a broad range of Inc.) therapeutic areas. 09/28/11 Anchor Hocking, LLC Leading designer, manufacturer, and marketer of high Evaluation of strategic alternatives, resulting in a $120.0 quality glass products. bifurcated senior credit facilities to refinance existing debt and provide a dividend to Monomoy Capital Partners. 09/07/11* General Elevator Sales One of the largest independent elevator companies in Sale to ThyssenKrupp AG. ND & Service, Inc. (The the United States, focusing on elevator maintenance, Jordan Company) repairs, and modernizations. 09/02/11 IntrinsiQ, LLC Leader in the development, sales, and support of Sale to AmerisourceBergen Corp., one of the $35.0 software and data in the healthcare oncology market. world’s largest pharmaceutical services companies. 08/31/11* National Registered Provider of corporate legal compliance services, with Sale to Wolters Kluwer Corporate Legal Services, ND Agents, Inc. a focus on law firms and small to midsize businesses. a subsidiary of Wolters Kluwer. 08/31/11 Angie’s List, Inc. Provider of consumer information for all local Growth capital and refinancing of existing debt. $30.0 homeowner and health services to its members. 08/23/11* See Tickets Independent provider of ticket transaction solutions Sale to Vivendi S.A. $155.0 to the entertainment industry in the United Kingdom. 08/12/11* Medisize Oy (Ratos AB) Contract developer and manufacturer of complex Sale to Phillips Plastics Corporation, a portfolio $181.7 plastic healthcare products to the global company of Kohlberg & Company, L.L.C pharmaceutical and medical device industry. 08/01/11 Excelligence Learning Developer, manufacturer, distributor, and retailer of Sale to Sterling Investment Partners, L.P. ND Corporation (Thoma educational products sold to childcare programs, Bravo) preschools, elementary schools, and consumers. 07/29/11 Consolidated Utility North America’s premier provider of a full spectrum Sale to United States Infrastructure Corporation, ND Services, Inc. (Tricor of utility damage prevention process services and a portfolio company of OMERS Private Equity. Pacific Capital) solutions. 07/28/11 Sur La Table (Freeman The premier multichannel retailer of a broad Sale to private equity firm Investcorp S.A. ND Spogli & Company) selection of distinctive culinary merchandise and the leading provider of culinary classes for consumers. 07/06/11 Union Metal Holding Manufacturer of infrastructure/municipal Sale to investors affiliated with KW Industries, Inc. ND Corporation & construction products. Subsidiaries (Goldner Hawn Johnson & Morrison) 07/01/11* Long Elevator and Independent elevator company with operations in Sale to KONE Corporation. ND Machine Co., Inc. Missouri, Indiana, and Illinois, focused on (The Jordan Company) elevator maintenance, repair, and modernization. * Represents cross‐border transaction. ND – Transaction value not disclosed.

Merger Tracker Select William Blair & Company Transactions 35

William Blair & Company

William Blair & Company Corporate Industry Coverage

Brent Gledhill Mark Brady Brent Felitto Matthew Gooch Global Head of Global Head of Head of North America Head of European Banking Corporate Finance Mergers & Acquisitions Corporate Finance +44 20 7868 4478 +1 312 364 5475 +1 312 364 8853 +1 312 364 8013 U.S. voicemail: +1 312 364 5425 [email protected] [email protected] [email protected] [email protected]

Industry Groups

Business & Commercial Consumer & Financial Services Retail Services Healthcare Industrials Technology

• Accounts Receivable • Apparel • Asset Management • Aesthetics and • Automotive & • Application Software Management • Branded Consumer • Brokerage Dermatology Transportation • Barcode/Auto Products • Business Process Products • Commercial Finance • Animal Health Identification Outsourcing • Building Products, • Cruise Lines & Resorts • Consumer Finance • Biotechnology • Computer/ Telephony • Consulting Technologies & • Discount Stores • Specialty Insurance & • Contract Research Automation • Digital Media • Distribution Organizations • Drugstores Insurance Services • Capital Goods Mfg. • E‐commerce • Education Services • E‐commerce • Trust Services • Dental Products & Infrastructure Services • Chemicals • Energy Services • Fitness Clubs • Electronic • Diagnostic Products • Contract & Electronics Components • Environmental • Food & Beverage Mfg. Services & Services • Electronics • Food Retailing • Infrastructure Manufacturing • Facility Services • Healthcare Products • Gaming & Lodging Distribution Services • Fire & Security • Environmental • ERP Software Services • Hard Goods • Healthcare IT Technology & Services • Financial Technology • Government IT • Home Furnishings • Healthcare Services • Material Handling Services • HR Outsourcing • Leisure • Imaging Technology & • Metal Processing • HR Services Services • IT Services • Power Sports • Paper & Plastics • Information Services • Private Label • IT‐Enabled Services Packaging • Payroll Services • Infrastructure Services • Restaurants • Medical Devices • Process Controls & • Semiconductor Capital Technology Equipment • Legal Services • Specialty Retail • Payer IT Services • Pumps, Valves & • Software as a Service • Marketing and • Sporting Goods • Pharmaceutical Advertising Services Outsourcing Filtration (SaaS) • Toys & Games • Parking Services • Pharmaceuticals • Thermal Management • Telecom Equipment • Professional Services • Revenue Cycle • Water & Waste Water • Telecom Services Management • Quality Assurance • Transaction Services & Solutions Processing • Rental Services • Residential Services • Route‐Based Services • Staffing & Search • Transportation & Logistics • Utility & Industrial Services

Global Reach

North America South America Europe GCC/India East Asia

Chicago (Headquarters) São Paulo London Bahrain Hong Kong Boston Tel Aviv Mumbai Seoul New York Zurich Shanghai San Francisco Tokyo Beijing

Merger Tracker 36 William Blair & Company Corporate Industry Coverage

William Blair & Company

Notes

Merger Tracker Notes 37

William Blair & Company

Disclosures

William Blair is a trade name for William Blair & Company, L.L.C. and William Blair International, Limited. William Blair & Company, L.L.C., is a Delaware company and is regulated by the Securities and Exchange Commission, The Financial Industry Regulatory Authority, and other principal exchanges. William Blair International Limited is authorised and regulated by the Financial Services Authority ("FSA") in the United Kingdom. William Blair & Company® only offers products and services where it is permitted to do so. Some of these products and services are only offered to persons or institutions situated within the United States and are not offered to persons or institutions outside of the United States. This material has been approved for distribution in the United Kingdom by William Blair International Limited, and is directed only at, professional clients and eligible counterparties (as defined in COBS 3.5 and 3.6 of the FSA Handbook). This advertisement is not intended to be investment advice. William Blair & Company | 222 West Adams Street | Chicago, Illinois 60606 | +1 312 236 1600 | williamblair.com August 9, 2012

Merger Tracker 38 Disclosures

International

London William Blair International, Limited The Broadgate Tower 20 Primrose Street Headquarters 17th Floor Chicago London EC2A 2EW 222 West Adams Street United Kingdom Chicago, IL 60606 Equity Sales: +44 20 7868 4400 +1 312 236 1600 Corporate Finance: +44 20 7868 4444 +1 800 621 0687 [email protected] 40 Bruton Street williamblair.com London W1J 6QZ United Kingdom Investment Management: +44 20 7297 4700 United States São Paulo Boston William Blair do Brasil Assessoria Financeira Ltda. 125 High Street Av. Brigadeiro Faria Lima 3729, room 511 Oliver Street Tower São Paulo, SP Suite 1901 Brazil Boston, MA 02110 04538-905 +1 617 235 7500 +55 11 3443 6472 Hartford Shanghai Putnam Place William Blair & Company, L.L.C. 100 Great Meadow Road Shanghai Representative Office Suite 606 Unit 16-18, 11th Floor Wethersfield, CT 06109 Building One, Corporate Avenue +1 800 596 2028 222 Hubin Road Shanghai 200021 New York P.R. China 666 Fifth Avenue +86 21 2327 2222 14th Floor New York, NY 10103 Zurich +1 212 237 2700 Stockerstrasse 46 CH-8002 Zurich San Francisco Switzerland 343 Sansome Street +41 44 287 9020 12th Floor San Francisco, CA 94104 +1 415 986 5596

Wilmington 500 Delaware Avenue Suite 720 Wilmington, DE 19801 +1 302 573 5000 William Blair & Company is a global investment banking and asset management firm. We are committed to building enduring M&A Markets Analysis relationships with our clients and providing expertise and 1Q 2012 solutions to meet their evolving needs. An independent and employee-owned firm, William Blair is based in Chicago, with 10 office locations including London, New York, Shanghai, and Zurich. For more information, please visit williamblair.com.

Mark Brady Global Head of M&A [email protected] +1 312 364 8853

Andrew Colmar Analyst [email protected] +1 312 364 5226

Merger Tracker

Quarterly Overview of Global Middle-Market M&A Activity Debt Capital & Private Equity Market Activity