March 2016 M&A and Investment Summary Table of Contents
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March 2016 M&A and Investment Summary Table of Contents 1 Overview of Monthly M&A and Investment Activity 3 2 Monthly M&A and Investment Activity by Industry Segment 8 3 Additional Monthly M&A and Investment Activity Data 42 4 About Petsky Prunier 53 Securities offered through Petsky Prunier Securities, LLC, member of FINRA. This M&A and Investment Summary has been prepared by and is being distributed in the United States by Petsky Prunier, a broker dealer registered with the U.S. SEC and a member of FINRA. Petsky Prunier is not affiliated with Altium Capital Ltd, but has partnered with Altium to expand its international presence. Altium has not prepared or verified the information in this Summary. Persons in the United States should contact Petsky Prunier for further information or services. This M&A and Investment Summary is not being distributed by Altium Capital Ltd in the United States and Altium Capital Ltd is not offering any services to persons in the United States. 2 | M&A and Investment Summary March 2016 M&A and Investment Summary for All Segments Transaction Distribution . A total of 433 deals were announced in March 2016, of which 250 were worth $20.6 billion in aggregate reported value . Digital Media/Commerce was the most active segment with 106 deals announced — 72 of these transactions reported $2.4 billion in value . Software was also active with 105 transactions announced, of which 64 were worth a reported $3.6 billion in value . Strategic buyers announced 184 deals (31 reported $12 billion in value) . VC/Growth Capital investors announced 233 transactions (212 reported $6.6 billion in value) . Buyout investors announced 16 deals during the month (seven reported $2.1 billion in value) March 2016 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Media/Commerce 106 24% $2,445.6 12% 34 $487.1 0 - 72 $1,958.5 Software 105 24% 3,563.1 17% 38 1,111.7 7 1,567.2 60 884.2 Marketing Technology 94 22% 588.3 3% 33 29.3 4 - 57 559.0 Agency & Marketing Services 33 8% 910.6 4% 28 265.6 3 390.0 2 255.0 Digital Advertising 32 7% 538.4 3% 12 175.7 0 - 20 362.7 Business Services 31 7% 5,948.7 29% 23 4,201.5 0 - 8 1,747.2 Traditional Media 17 4% 817.3 4% 9 187.7 2 95.6 6 534.0 Information 15 3% 5,803.8 28% 7 5,542.0 0 - 8 261.8 *Intercontinental Exchange’s $7.4 billion acquisition of Interactive Data has been excluded to limit comparative distortions Total 433 100% 20,615.8 100% 184 12,000.6 16 2,052.8 233 6,562.5 3 | M&A and Investment Summary March 2016 M&A and Investment Summary for All Segments Transaction Distribution . Aggregate reported transaction value in March was up 55 percent from February of 2016 and up 13 percent from March 2015 . Strategic activity accounted for 58 percent of reported deal value during the month and included significant transactions: • Business research provider IHS’ pending acquisition of Markit in an all-stock deal valuing the company at approximately $5.5 billion, as part of a consolidated company with a total market value of more than $13 billion • The $540 million purchase of IT application development company Serena Software by Micro Focus International from HGGC • Sykes Enterprises’ acquisition of Clearlink, a provider of marketing and technology-enabled customer acquisition services to the home services and insurance sectors, from Pamlico Capital for $207 million (A Petsky Prunier-led transaction) • IBM’s acquisition of cloud consulting and implementation services company Bluewolf Group from Riordan, Lewis & Haden in a transaction valued at a reported $200 million $120.0 $500.0 $108.4 $110.0 $100.0 Bright $400.0 $90.0 House/ $80.0 Charter $70.0 $300.0 $60.0 $50.0 Time Warner/ $40.4 $200.0 $40.0 Charter Sungard $30.0 $25.9 $26.7 $27.4 $23.1 Veritas $23.7 $24.9 $20.6 $18.8 $25.9 Solera $100.0 $20.0 Inter. Data $13.7 $14.4 $10.0 425 492 458 466 448 376 403 424 363 407 418 427 433 $- $- Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 *Note, Charter Communications’ $78.8 billion and $10.8 billion acquisitions of Time Warner and Bright House Networks , Fidelity National Information Services‘ $9.1 billion acquisition of SunGard Data Systems, The Carlyle Group’s $8 billion acquisition of Veritas Systems, Intercontinental Exchange’s $7.4 billion acquisition of Interactive Data, and Vista Equity Partners’ $6.7 billion acquisition of Solera Holdings have been excluded to limit comparative distortions. 4 | M&A and Investment Summary March 2016 Selected Transactions with Valuation Information Disclosed ($ in Millions) Selected Transactions With Multiples Information Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Agency & Marketing Services BAMKO, Inc. Ad Specialty/Premiums Superior Uniform Group $ 27.0 $ 31.5 $ - 0.9x NA MCD Partners Digital Agency M&C Saatchi plc 19.6 14.9 2.5 1.3x 7.8x Business Services Dell's Information Technology Division IT Consulting/Systems Integration NTT DATA, Inc. 3,050.0 2,826.0 - 1.1x NA Digital Advertising InnerActive Ltd. Ad Networks/Exchanges RNTS Media N.V. 72.0 43.2 - 1.7x NA JUICE Mobile Mobile Marketing Yellow Pages Limited 26.2 18.0 - 1.5x NA Information Markit Group Limited Financial Information IHS, Inc. 5,500.0 1,113.4 382.3 4.9x 14.4x Software Serena Software, Inc. Application Management Software Micro Focus International plc 540.0 176.2 87.0 3.1x 6.2x MedicalDirector Healthcare Software Affinity Equity Partners 117.2 29.3 - 4.0x NA Conject Holding GmbH Collaboration Software Aconex Ltd. 73.6 26.6 - 2.8x NA Adaptive Software LLC Healthcare Software Decision Resources Group 24.5 3.2 - 7.7x NA Evantage Consulting Ltd. Healthcare Software Wilmington plc 8.6 1.7 - 5.1x NA Traditional Media Renegade83 1 Broadcast Television Entertainment One Ltd. 35.4 35.1 - 1.0x NA 1 65 percent stake acquisition 5 | M&A and Investment Summary March 2016 Securities in Registration ($ in Millions) Aggregate LTM Date Company Name Country Segment Offering Value Rev EBITDA Mar-16 SecureWorks Corp. United States Software $ 100.0 $ 339.5 NA Jan-16 Blue Coat Systems, Inc. United States Software 500.0 950.0 NA Dec-15 Nutanix, Inc. United States Software 200.0 283.1 NA Sep-15 PointClickCare Corp. United States Software 100.0 112.6 3.8 Jul-15 Apptio, Inc. United States Software NA 100.0 NA Mar-15 Veracode, Inc. United States Software 450.0 16.7 NA 6 | M&A and Investment Summary March 2016 LTM IPO Performance Initial Offering Final Price Stock Price at Close Stock Price on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Mar 31, 2016 1st Trading Day Dec-15 NasdaqGS:TEAM Atlassian Corporation Plc Australia $18.00-$20.00 21.00 $27.78 up 32% 25.15 (9.5%) Dec-15 NYSE:YRD Yirendai Ltd. China 9.00-11.00 10.00 9.10, down 9% 11.64 27.9% Nov-15 NYSE:INST Instructure, Inc. United States 16.00-18.00 16.00 18.00 up 12.5% 17.94 (0.3%) Nov-15 NasdaqGS:MTCH Match Group, Inc. United States 12.00-14.00 12.00 14.74, up 23% 11.06 (25.0%) Nov-15 NasdaqGS:MIME Mimecast Limited United Kingdom 11.00-13.00 10.00 10.10, up 1.0% 9.73 (3.7%) Nov-15 NYSE:SQ Square, Inc. United States 11.00-13.00 9.00 13.07, up 45% 15.28 16.9% Oct-15 NYSE:PSTG Pure Storage, Inc. United States 16.00-18.00 17.00 16.01, down 5.8% 13.69 (14.5%) Oct-15 NYSE:FDC First Data Corporation United States 18.00-20.00 16.00 15.75, down 1.5% 12.94 (17.8%) Jul-15 NasdaqGM:RPD Rapid7, Inc. United States 13.00-15.00 16.00 26.75, up 67% 13.07 (51.1%) Jul-15 NYSE:TDOC Teladoc, Inc. United States 15.00-17.00 19.00 28.50, up 50% 9.60 (66.3%) Jun-15 NasdaqGM:APPF AppFolio, Inc. United States 12.00-14.00 12.00 14.10, up 17% 12.24 (13.2%) Jun-15 NYSE:XTLY Xactly Corporation United States 10.00-12.00 8.00 8.70, up 9% 6.85 (21.3%) Jun-15 NYSE:FIT Fitbit Inc. United States 17.00-19.00 20.00 29.68, up 48% 15.15 (49.0%) Jun-15 NasdaqGM:MB MINDBODY, Inc. United States 13.00-15.00 14.00 11.56, down 17.4% 13.33 15.3% Jun-15 NYSE:TGNA TEGNA Inc. United States 26.00-28.00 30.00 31.63, up 5% 23.46 (25.8%) Jun-15 NYSE:EVH Evolent Health, Inc. United States 14.00-16.00 17.00 18.86, up 11% 10.56 (44.0%) May-15 NYSE:SHOP Shopify Inc. Canada 14.00-16.00 17.00 28.31, up 51% 28.21 (0.4%) May-15 NasdaqGS:BZUN Baozun Inc. China 12.00-14.00 10.00 10.44, up 4% 5.84 (44.1%) May-15 NYSE:PGND Press Ganey Holdings, Inc.