Monthly European

December 2013

Technology / Media / Telecoms / Internet / Healthcare / Cleantech / Materials Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bulletin December 2013

Published by Go4Venture Advisers Research, the Equity Research unit of Go4Venture Advisers LLP.

About Go4Venture Advisers

Providing innovative, fast-growing companies and their investors with independent corporate finance advice

to help them evaluate, develop and execute growth strategies

Equity Capital Markets (ECM)  Equity private placements  Growth equity financings and secondaries  Pre-IPO advisory

Mergers & Acquisitions (M&A)  Sellside  Buyside / Buy and build  Valuation services

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December 2013 Contents

This Month in Brief 2

Investments 1.1 - Headline Transactions Index (HTI) 5 1.2 - Large Transactions Summary 6 1.3 - Large Transactions Profiles 7

M&A Transactions 2.1 - M&A Activity Index 17 2.2 - Top 5 Global TMT M&A Transactions Summary 18 Headline European VC & PE-Backed M&A Transactions: 2.3 - Summary 21 2.4 - Profiles 22

List of Acronyms 25

About this Bulletin

The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bulletin provides a summary of corporate finance activity among emerging European TMT companies:  Investments, i.e. Venture Capital (VC) and Private Equity (PE) financings, including growth equity, financing rounds with single secondaries components (recapitalisations); and  M&A Transactions where the sellers are VC and PE-backed European companies, including all majority transactions with no new investment going into the business (e.g. acquisitions, Management Buyouts (MBOs) and other buyouts). Investment activity is measured using Go4Venture’s European Tech Headline Transactions Index (HTI), which is based on the number and value of transactions reported in professional publications. M&A activity is measured using data from a combination of external sources, primarily Capital IQ, with complementary reporting from 451 Group and VentureSource. Europe is defined as Western, Central and Eastern Europe, excluding Israel. For more details, please refer to the Methodology Note available on our website. Please note that no part of the Bulletin can be reproduced unless content is duly attributed to Go4Venture and the details of republishing are notified to [email protected].

December 2013 This Month in Brief

Dear Clients and Friends,

Welcome to the latest edition of Go4Venture Advisers‟ European Venture & Growth Equity Market Monthly Bulletin, featuring our proprietary Headline Transaction Index (HTI) of investment activity, as well as a summary of VC & PE-backed TMT M&A exits of $50 million or more.

2013 Out, 2014 In: The Evidence of a European Venture Market Kicking Into Gear Is Mounting

We ended 2013 on a high, at the same time as signs are accumulating that we are moving into the upper part of the investment cycle: as venture market insiders actually temper their enthusiasm for venture investments, public market outsiders are piling in. It is only a question of time before retail investors join the fun. To some extent, they already have – via a revival of angel investment (where losses are often sheltered by tax incentives) and, increasingly, via crowdfunding platforms (where individual investors are on their own – so expect disappointments). Soon, retail investors will demand their share of tech IPOs, as they see Wall Street insiders enjoying first day hikes through 2014. 2015 is going to be even more fun!

The irony of it all is that the vagaries of the investment cycle are actually hiding a genuine improvement in the functioning of the European venture funding market. Entrepreneurs are better educated about VC demands and therefore better able to deliver on them (global ambition, large exit and all that); the investor landscape has become much richer (if more complicated to navigate), resulting from a burgeoning enthusiasm for innovation and entrepreneurship across the board; the eco-system is getting denser, across Europe (and we‟d like to think Go4Venture Advisers is pulling its weight here). And we are starting (finally!) to see meaningful exits and valuations for European tech companies, e.g. Spotify on the funding side, or DeepMind, NaturalMotion and Supercell on the M&A side (more on that below).

So which way is it? Well, we side with the optimists and believe that European venture is kicking into gear, i.e. will start being a genuine valuation driver – even if we will not avoid the boom and bust inherent to any market. In the case of technology investing, the fads are simply faster and bigger than in other, more steady verticals.

Investments

The results are in and 2013 finished well ahead of 2012 (+32% by value and +15% by number of transactions).

A few comments:

 The trend data is pretty robust: these numbers are in line with figures reported by market research companies such as Preqin, even if their data gathering methodology is quite different from ours.  The average transaction size is going up, reflecting a drive for bigger outcomes (actually a mix of both riskier bets and less risky growth equity assets) which our Headline Transactions Index (HTI) picks up because (by design) it largely ignores activity at seed level and for Series A rounds of less than £5mn/€7.5mn/$10mn.

December 2013

 Larger transactions are driven by the Darwinian moment which the VC industry has just gone through: o Surviving established funds have further built their brand name and reputation (Accel, Balderton, Index etc.), which means they see most transactions and are benefiting from an obvious information advantage; o New players (e.g. Hoxton Ventures – which closed their $40mn (€28mn) fund to invest in European start-ups in December) are coming at it with a level of self-confidence, energy and global approach, which has traditionally mostly been lacking in European venture; o And of course PE funds are adding to the DNA of the industry through their “think big” mentality (e.g. Vitruvian Partners which closed their second fund on £1bn (€1.2bn) in December).  The acceleration we saw from summer 2012 has now reversed, with a slower pace of growth since summer 2013. Is it a pause? Or are we going to see a sudden interest from big public market players (hedge funds, institutional investors, family offices, etc.) put the market into overdrive as in the late 1990s? As an asset class only worth c. €5bn a year, the European venture market is easily moved by a few hundreds of millions of asset reallocation from a handful of large asset managers.

In line with this growth rate slowdown, December 2013 was below December last year – in both value and number of financings. Interestingly, out of 10 Large HTI deals (>£5mn / €7.5mn / $10mn) profiled in our December issue, 8 are from the internet services segment, including 5 e-commerce plays. It seems, though, that e-commerce is hitting two snags: lots of me-toos (furniture, fashion, ticketing, etc.) and increasingly niche plays (e.g. plus-size e-fashion – well, admittedly already half the population, and growing!). In a way, this follows a similar trend in enterprise software, where the shift from upfront licence to SaaS models (on the back of cloud-based delivery) is now hitting smaller and smaller segments.

Are these smaller markets big enough to support venture plays? This becomes a more pressing question as valuations are now going up dramatically. Whereas Silicon Valley investors argue (of course they would) that “we‟re talking about a fairly small number of companies”, “it hasn‟t affected public market that much” and consequently “bubble believers don‟t know what they‟re talking about” (as per Marc Andreesssen‟s January interview with the Wall Street Journal), recent data points suggest exactly the opposite (leading the Financial Times to ask the question: “Valuations: It this nuts?”):

 From the funding market (admittedly mostly from the Valley): o Dropbox raising $250mn (€175mn) (from BlackRock) in January at a $10bn (€7bn) valuation, 25% higher than the valuation touted three months earlier in November when a price of $8bn (€5.6bn) was mentioned, and of course 2.5x more than the valuation of September 2011 only 18 months ago. Warren Buffet must be looking in with bemusement.  From the IPO market: o AO.com, a UK-based online electricals retailer, is hoping for a £1bn (€1.2bn) valuation when it floats later this year, more than 3x the valuation it was hoping to achieve just four months ago. This would represent 3x historical revenues for a business that growing at 50% per annum but hardly profitable. All this while the market is waking to the fact that “e-commerce is a bear”.  From the M&A front: o This month Google paid $3.2bn for 4-year-old Nest Labs, the maker of beautiful $130 thermostats and smoke detectors. The company has sold “hundreds of thousands” of units (not millions), so we‟re talking something like 30x revenues at best, and possibly as much as 100x revenues or more. It‟s the data, you stupid.

December 2013

At least Europe is starting to benefit from these increased valuations. Only in the last month, we‟ve seen 3 major transactions of more than €100mn (which will be profiled in our January issue next month):

 Google buying UK-based artificial intelligence start-up Deepmind for £400mn (€485mn)  Zynga acquiring UK-based NaturalMotion, a developer of mobile apps, for $500mn (€370mn)  Equix buying TDX Group, a technology-led debt collection business, for £200mn (€240mn)

Exits

The year ended like it started – a tech M&A market lacking excitement, even if many pundits around (M&A advisers, brokers, etc.) are cheering and predicting more action. December was a regular month for TMT with the Top 5 transactions in the c.$1-5bn (€0.7-3.5bn) mark, mostly in the application software sector, including Oracle continuing its shopping spree in enterprise SaaS software, as well as consolidation plays in security software and vertical markets (retail and car trade). The other large deal was in semiconductors with Avago buying LSI for c.€5bn.

Among VC & PE-backed companies, the three Headline M&A Transactions (>$50mn / €35mn / £30mn) included a couple well above the €100mn mark, including:

 Computer imaging specialist Realtime Technology selling out to Dassault Systemes for €200mn  Payment solution Sofort selling out to VC- and now PE-backed Klarna, a rare example of a roll-up play in the venture business

In our opinion the (slowly) growing number of these Large Headline M&A Transactions (>€100mn / $140mn) is quite significant. By reference, a recent study analysing Crunchbase data showed that the average successful acquired US start-up sells for $155mn (€115mn), having raised $30mn (€22mn) equivalent to a Price/Funding of about 7.5x. Once you add the numbers for successfully IPO‟d US start-ups, then the figures are $240mn (€175mn) and $41mn (€30mn) respectively.

In Europe we counted 24 of these transactions in 2013, worth €13.2bn in total. This is an encouraging sign and comforts us in our view that since the mid-2000s, the surviving (and now thriving) VCs operating in Europe are quietly building a substantial portfolio of economically meaningful European companies, bringing for the first time an element of repeatability to a successful outcome.

We believe this will play out over the next 2-3 years – until the bubble burst – but by then European venture will have finally established its credentials, and, in the process, self-sustainability through wealthy entrepreneurs re-injecting cash, experience, and of course credibility to the European venture funding process. So the next bubble burst will be a happier one this time.

Enjoy the reading. Please direct any questions or comments to [email protected]. If you do not wish to receive future HTI updates from us, please send an email with the title "unsubscribe" to [email protected].

The Go4Venture Advisers Team

Where to Meet the Go4Venture Advisers Team in January – see www.go4venture.com/contact/

 February 3 – Amsterdam, Netherlands – ISE Investor Showcase

 February 3-4 – Gothenburg, Sweden – West Nordic Venture capital forum/Connect2capital

For more details about the Headline Transactions Index (HTI), please visit our website.

December 2013

1.1 - Headline Transactions Index (HTI)

Go4Venture HTI Index by Deal Value

800 2010 2011

700 mn)

€ 2012 2013 600

500

400

300

200

ValueTransactions of per Month ( 100

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Go4Venture Advisers Analysis; HTI Database

Go4Venture HTI Index by Cumulative Deal Value

4,000 2010 2011

3,500 mn) € 2012 2013 3,000

2,500

2,000

1,500

1,000

Cumulative Value of Transactions ( Transactions of Cumulative Value 500

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source: Go4Venture Advisers Analysis; HTI Database December 2012 2013 Year-to-Date 2012 2013 Large Transactions # 10 12 Large Transactions # 115 127 €mn 249 155 €mn 2,340 2,899 Other Transactions # 26 17 Other Transactions # 321 334 €mn 65 42 €mn 844 889 All Headline Transactions # 36 29 All Headline Transactions # 436 461 €mn 315 196 €mn 3,184 3,788 Of Which: Of Which: Landmark Transactions # 5 2 Landmark Transactions # 38 35 €mn 194 60 €mn 1,443 1,866 Definitions Large Transactions: > £5mn / €7.5mn / $10mn Other Transactions: < £5mn / €7.5mn / $10mn Landmark Transactions: subset of Large Transactions > €20mn / £13mn / $27mn

December 2013 1.2 - Large Transactions Summary

(>£5mn / €7.5mn / $10mn)

2 Talend (France / US) Software Late 29.2 Provider of open source Balderton Capital, Bpifrance, www.talend.com Stage data integration, quality Idinvest Partners, Iris and management tools. Capital, Silver Lake Sumeru.

3 Plain Vanilla (Iceland / US) Internet B* 16.1 Developer of a social BOLDstart Ventures, www.plainvanilla.is Services trivia quiz app. CrunchFund, Greycroft Partners, IDG Ventures USA, MESA+, Sequoia Capital, Tencent. 4 XMOS (UK) Hardware Late 10.2 Fabless semiconductor Amadeus Capital, DFJ Esprit, www.xmos.com Stage company. Foundation Capital, Undisclosed Investor(s). 5 Westwing Home & Living Internet C 10.0 Operator of an online Tengelmann Ventures. (Germany) Services furniture shopping club. www.westwing.de 6 Mister-Auto (France) Internet B 10.0 Operator of an online Bpifrance, Iris Capital. www.mister-auto.com Services retail platform for automotive parts and accessories. 7 navabi (Germany) Internet C 10.0 E-tailer for plus-size (UK DuMont Venture, Index www.navabi.tv Services 14-30) designer fashion. Ventures, Seventure.

8 Plumbee (UK) Internet B 9.6 Operator of a social Endemol, Idinvest Partners. www.plumbee.com Services casino games app. 9 MyOptique Group (UK) Internet Late 9.6 Online optical retailer. Acton Capital Partners, myoptiquegroup.com Services Stage Cipio Partners, Highland Capital Partners, Index Ventures.

10 Ticketland (Russia) Internet A 7.3 Traditional ticketing agent iTechCapital. www.ticketland.ru Services and provider of an online ticketing platform.

Source: Go4Venture Advisers HTI Database

Key Bold indicates lead investor(s) *Internal Round **Client of Go4Venture Advisers

December 2013

# Company Sector Round €mn Description Investors 1 DataSift (UK / US) Internet C 30.7 Provider of a real-time Cendana Capital, Daher www.datasift.com Services social data mining Capital, IA Ventures, Insight platform. Venture Partners, Northgate Capital, Scale Venture Partners, Upfront Ventures. DataSift (UK / US), developer of a platform for monitoring and analysing social media, blog and other digital content, raised $42mn (€30.7mn) in a Series C round led by Insight Venture Partners with participation from existing investors Cendana Capital, Daher Capital, IA Ventures, Northgate Capital, Scale Venture Partners and Upfront Ventures. DataSift helps enterprises to smartly use the data gathered from social media platforms, such as Twitter and Facebook, through the billions of user posts. Each post is tagged with metadata, and can then be used for multiple analyses like discovering trends, tracking customers‟ preferences or their demographics. The platform detects 150 languages and is currently used by 1,000 corporate clients (300 at the time of its previous round in November 2012) in 40 countries. The company had rumoured revenues of $25mn (€17.5mn). For a more detailed description please refer to our previous coverage. Following a $15mn (€11.7mn) Series B round in November 2012 and a Series A $7.2mn (€5.6mn) round in May 2012, the 3 year-old company has now raised a total of $72mn (€53mn). DataSift plans to use this investment to grow its sales team, expand its capacity to include “non-social” data sources (messaging, enterprise collaboration platforms, etc.) and facilitate its global expansion on the route to a $1bn targeted IPO. The recent acquisition of smaller rival Topsy Labs by Apple for $200mn (€146mn), coupled with the continued strong interest in Big Data, signal that the space is indeed heating up. San Francisco-based Cendana Capital (€64mn (2013)) is primarily a fund of funds. The company was founded in 2009 by Michael Kim, an active member of the VC community. Previously a partner at Rustic Canyon, he now sits on the LP advisory boards for several well-known firms, including Accelerator Ventures, Forerunner Ventures, and SoftTech VC. We last saw Lebanon-based family office Daher Capital in August 2013, through its participation in a €13.7mn round for Kyriba, a provider of SaaS treasury and payment solutions. The company invests globally in a wide range of industries, including technology, financial services and manufacturing. Founder and Chairman Michel Daher is a well-known entrepreneur in the country, having co-founded Master Chips and Poppins, two of the largest FMCG companies in the Middle East and North Africa (MENA) region. IA Ventures (€77mn (2012); €113mn AUM), a New York-based venture capital firm, invests in early-stage, Big Data-focused companies. Founded in 2008, it now has a portfolio of 34 companies. The founder, Roger Ehrenberg, was previously an angel investor and backed many successful companies, including online marketing firm Buddy Media (acquired by Salesforce in 2012 for c.€600mn). We last saw global investor Northgate Capital (€201mn (2010); €2.3bn AUM) in 2012, when it participated in DataSift’s Series B round. With 6 offices around the world, it primarily invests in private equity and venture capital funds but will also make direct co-investments alongside a small number of trusted partners. Scale Venture Partners (€219mn (2013); €876mn AUM), a San Francisco-based venture capital firm, typically invests in companies in the internet, cloud, SaaS, and mobile markets that have recently started generating revenue. Founded in 2000, the company was Bank of America’s venture capital arm before spinning out in 2007. It has around 50 companies in its portfolio, including online file sharing firm Box and online video advertising services provider BrightRoll. Previously known as GRP Partners, Upfront Ventures (€146mn (2013); €276mn AUM) is a Los Angeles- based venture capital firm. It typically invests in seed and Series A rounds in US consumer, digital media, retail and SaaS companies. Upfront’s notable exits include CitySearch, lastminute.com and Starbucks. Unlike Cendana, IA Ventures and Upfront Ventures that appear for the first time in our bulletin, our readers should be familiar with frequently-featured Insight Venture Partners (€1.8bn (2013); €4.8bn AUM); a global private equity and venture capital firm focused on the TMT and medtech sectors.

December 2013

# Company Sector Round €mn Description Investors 2 Talend (France / US) Software Late 29.2 Provider of open source Balderton Capital, Bpifrance, www.talend.com Stage data integration, quality Idinvest Partners, Iris and management tools. Capital, Silver Lake Sumeru.

Talend (France / US), a provider of open source data integration, quality and management tools, raised $40mn (€29.2mn) in a Late Stage round led by Bpifrance and Iris Capital with participation from existing investors Balderton Capital, Idinvest Partners and Silver Lake Sumeru. We last saw Talend in November 2010, when it raised €25mn in a Late Stage round to finance the acquisition of German systems integrator SOPERA, suggesting that this move would make it the fifth largest pure play open source software company. This time round, Talend plans to use the investment to enhance sales and marketing efforts, accelerate product development (with a focus on Hadoop-related technologies) and potentially pursue an IPO. The company has now raised more than $100mn (€73mn) in total.

Its flagship product, „Talend for Big Data‟, is an open source platform that connects and integrates any type of data source – from traditional databases (e.g. MySQL) to emerging Big Data platforms (e.g. Hadoop) and new data sources (e.g. social media) – to enable data processing and analytics. The company claims to offer the only such solution running natively inside Hadoop; as no new code needs to be produced, clients benefit from reduced integration costs, higher scalability and faster analytics capability.

This is another example of a Big Data company, just like DataSift (see previous profile). According to IDC, spending on Big Data technologies and services is expected to grow by 30% in 2014, exceeding $14bn (€10bn).

London-based Balderton Capital (€373mn (2008); AUM €1.5bn) is considered among the largest and most successful Europe-based early-stage / Series A venture capital firms. Set up in London in 2000 by well- known Silicon Valley VC firm Benchmark Capital – and originally known as Benchmark Europe – the firm became independent in 2007. To date, Balderton has backed over 100 companies, including LoveFilm, a UK-based provider of DVD-by-mail and streaming video sold to Amazon for c.£200mn (€238mn) in 2011. It is now raising a new £250mn (€300mn) fund, aiming to support high-growth European tech companies.

We last saw transaction co-leader Bpifrance (€600mn (2009); AUM €1.1bn) in September 2013 as an investor in TalentSoft’s €19.8 Late Stage round (French provider of cloud-based HR software) and Fermentalg’s €12mn Series C round (French biotechnology company specialising in the bio-production of chemical compounds from microalgae). Formed this year, Bpifrance is supported 50/50 by the French state and the French state bank Caisse des Dépôts. With a 28 year history and 8 offices around the world, transaction co-leader Iris Capital (€170mn (2012); AUM €850mn) has invested c.€1bn in over 230 (primarily European) companies. It focuses on social and digital media, internet and mobile services, cloud computing, networks and software technologies. In 2012, Iris Capital partnered with telecommunications company Orange and communications group Publicis to create a €300mn venture fund focused on the digital economy.

Our readers should be familiar with Paris-based lower mid-market private equity and venture capital firm Idinvest (€281 (2013); AUM €4.1bn), and Silver Lake Sumeru, the mid-market tech arm of well-known specialist tech investor Silver Lake Partners (€7.5bn (2013); AUM €16.8bn). Idinvest last featured in our September 2013 issue for its participation in Vestiaire Collective’s €15mn Series C round (online marketplace for second hand luxury fashion). We haven’t seen Silver Lake Sumeru since participating in Talend’s previous round in 2010.

December 2013

# Company Sector Round €mn Description Investors 3 Plain Vanilla (Iceland / US) Internet B* 16.1 Developer of a social BOLDstart Ventures, www.plainvanilla.is Services trivia quiz app. CrunchFund, Greycroft Partners, IDG Ventures USA, MESA+, Sequoia Capital, *Internal Round Tencent. Plain Vanilla (Iceland / US), developer of iOS social trivia quiz app QuizUp, raised $22mn (€16.1mn) in a Series B internal round led by Sequoia Capital with support from BOLDstart Ventures, CrunchFund, Greycroft Partners, IDG Ventures USA, MESA+ and Tencent. The money will be used to develop QuizUp‟s Android version (to be launched in February 2014) and get access to a larger user base – as c. 70% of smartphone users are on Android (according to market research firm Kantar Worldpanel). The company will also launch the app in additional languages, as it is currently offered only in English. Founded in 2010, Plain Vanilla is based in Iceland with a US subsidiary in Silicon Valley. In November 2013, the company launched QuizUp – a free iOS social trivia quiz app that has a database of c.100,000 multiple choice questions, organised in 14 topics. Its 7mn users choose their topic(s) of interest and the friends they want to compete against (usually from their Facebook and/or Twitter accounts), after which games are played either in real-time or asynchronously. As users win games, they earn experience points and improve their individual topic-specific rankings. QuizUp also offers social elements such as chatting, rankings against friends and all users, and discussion boards. The app has been highly successful, taking just seven days to accumulate 1mn registered users. It took household-name apps such as Foursquare (location-based social networking) and Instagram (photo editing, acquired by Facebook in April 2012 for €760mn) 13 and 2.5 months to achieve this feat, respectively. Since its launch, QuizUp has been a permanent fixture in App Store‟s Top 20 apps (by number of downloads), and has achieved a 4.5/5 star rating (based on 4,500 user reviews). Despite being free to download, it also ranks among App Store‟s Top 300 grossing apps due to its extensive range of in-app add-ons. According to the company, users spend an average of 40 minutes a day on the app. As also mentioned in previous Bulletins, Plain Vanilla joins a wave of European companies that have achieved international success via the B2C app industry, overcoming the region‟s traditional geographic barriers to distribution. Other examples include task management app operator 6Wunderkinder, which featured in our last month‟s Bulletin for its €13.9mn Series B round, and social casino game operator Plumbee, which features in this issue for its €9.6mn Series B round (see p.14). All this round’s investors also participated in Plain Vanilla’s March 2013 $3.6mn (€2.6mn) Series A. Leading this round is well-known Silicon Valley-based venture capital firm Sequoia Capital (€227mn (2012); AUM €3.1bn), which has been actively investing in the B2C app space. Examples include 6Wunderkinder’s aforementioned Series B round, and its investments in public transit app operator Moovit and mobile learning games app MindSnacks. The venture capital firms CrunchFund (€20mn (2011)) and Greycroft Partners (€129mn (2012); AUM €289mn) last featured in our June 2012 and March 2013 issues, respectively. San Francisco-based CrunchFund – co-founded by TechCrunch’s founder Michael Arrington – featured for its role as a seller in Microsoft’s €957mn acquisition of US enterprise social network provider Yammer, and New York / Los Angeles-based Greycroft Partners for its participation in Estonian mobile payment provider Fortumo’s €7.7mn late stage round. San Francisco-based early-stage venture capital firm IDG Ventures USA (€74mn (2008); AUM €74mn) is backed by IDG, one of the world's largest media groups. IDG was among the first corporates to successfully launch a global network of venture funds (China, India, Korea, USA and Vietnam). Its European arm was the exception to this success, and was ultimately bought out and rebranded as Acacia Capital Partners. Chinese group Tencent is the world’s fourth largest Internet company (by 2013 revenues). The other investors are New York-based seed fund BOLDstart Ventures (€7.9mn (2013); AUM €7.9mn) and New- York-based early-stage venture capital firm MESA+ (arm of the investment bank MESA Global).

December 2013

# Company Sector Round €mn Description Investors 4 XMOS (UK) Hardware Late 10.2 Fabless semiconductor Amadeus Capital, DFJ Esprit, www.xmos.com Stage company. Foundation Capital, Undisclosed Investor(s).

XMOS (UK), a fabless semiconductor company that develops multi-core microcontrollers for a wide range of embedded applications, raised $14mn (€10.2mn) in a Late Stage round from existing investors Amadeus Capital, DFJ Esprit, Foundation Capital and other undisclosed investors. The funds will be used to expand XMOS‟ international operations by adding a support centre in China and sales offices in Germany and Japan, increasing its US salesforce and doubling its engineering personnel in the UK and India. XMOS was founded in 2005, after spinning out from the University of Bristol, by a diverse team of 5: Ali Dixon (then final-year student at the University of Bristol), James Foster (former CEO of bridge chip provider Oxford Semiconductor, acquired by switch and bridge chip specialist PLX Technology in 2009 for more than €10mn), Noel Hurley (former Product Director at semiconductor company ARM), David May (former Head of Computer Science at University of Bristol), and Hitesh Mehta (General Partner at Acacia Capital Partners). With c.60 employees and targeted 2013 revenues of $5-10mn (€3.6-7.3mn), XMOS expects to become profitable within 2014. Further, its new President and CEO Nigel Toon – a veteran of the electronics industry – believes that the company will reach c.$100mn (€73mn) revenues within the next 5 years, at which point he envisages an IPO at a market capitalisation of up to $500mn (€365mn). As a fabless company, XMOS is only involved in the design phase of its comprehensive range of 32-bit multi-core microcontrollers named xCORE, which are then fabricated by TSMC, a semiconductor foundry in Taiwan. Due to its multi-core architecture, xCORE can simultaneously execute various real-time tasks, as well as Digital Signal Processing (DSP) and control flow, thereby increasing overall processing speed. As a general-purpose microprocessor, it is easily re-programmed therefore can be used for a range of embedded applications – such as audio equipment (e.g. headphones), automotive instruments (e.g. car infotainment system), consumer products (e.g. smartphone peripherals) and industrial systems (e.g. robotics). This performance and versatility is enabled by 3 additional products: xSOFTip (IP interfaces used to configure the chips), xTIMEcomposer studio (a software development environment) and xKIT boards (flexible development boards for testing in embedded systems). XMOS has managed to secure over 300 clients to date (including multi-national conglomerates such as Sony), 50% of which are manufacturing their products in China. The company has raised more than $50mn (€36mn) to date; its largest round was a $16mn (€12mn) Series A in 2007 and its most recent one a $13.6mn (€10mn) Series C in 2012. London-based Amadeus Capital (€60mn* (2013); AUM €658mn) invests in 3 types of companies: early- stage in the UK, venture-stage in emerging markets, and growth-stage in Europe and the US. It covers the cleantech, consumer and business services, communications and networking, software, hardware and medtech sectors. Amadeus’ previous semiconductor investments include well-known companies such as Icera (acquired by NVIDIA for €270mn in 2011) and CSR (IPO’d in 2004; market cap of more than €1bn). DFJ Esprit (€150mn** (2009); AUM €840mn), the London-based affiliate of the global venture capital network DFJ, invests $0.5-50mn (€0.4-36mn) in early-stage European companies focused on electronics, internet, medtech, mobile and software. The firm has backed a number of well-known semiconductor companies, including Icera and Microcosm (acquired by Conexant for more than €90mn in 2000). Silicon Valley-based early-stage venture capital firm Foundation Capital (€220mn*** (2012); AUM €2bn) is one of the few cross-sector US funds that actively invests in European semiconductor companies (another example being ACCO in France). We last saw the firm in March 2013, when it exited the fabless semiconductor company Tensilica via a c.€290mn trade sale to Electronic Design Automation (EDA) software provider Cadence Design Systems. *The fund is still open; €40mn has been raised to date, out of a targeted €60mn. ** The fund is still open; €70mn has been raised to date, out of a targeted €150mn. *** The fund is still open; €200mn has been raised to date, out of a targeted €220mn.

December 2013

# Company Sector Round €mn Description Investors 5 Westwing Home & Living Internet C 10.0 Operator of an online Tengelmann Ventures. (Germany) Services furniture shopping club. www.westwing.de

Westwing Home & Living (Germany), an operator of an online furniture shopping club, raised €10mn in a Series C round by sole investor Tengelmann Ventures. The investment, for which Tengelmann received a stake of 8% (implying a pre-money valuation of €115mn), will help the company achieve its goal of becoming the “leading provider in the Home and Living retail sector” globally.

The company has raised more than $100mn (€73mn) to date, its largest round being a $50mn (€39.1mn) Series B in June 2012 led by Summit Partners with support from existing investors Access Industries, Holtzbrinck Ventures, Investment AB Kinnevik and Rocket Internet.

Founded in 2011 as Germany‟s first e-commerce shopping club for home and living, Westwing (which trades under the Dalani brand in some countries) offers more than 2,000 designer furnishings in time-limited sales at up to 70% discounts to the Recommended Retail Price (RRP). Like Groupon and other flash-sale clubs, members are informed via email about daily or weekly offers from selected brands. With around 160 employees, the company claims a leading position in its 8 country markets (Brazil, France, Germany, Italy, Netherlands, Poland, Russia and Spain). In 2013 it reported c.€130mn turnover, and expects to become profitable in 2014.

The company has progressed significantly since it was covered in our June 2012 Bulletin. Sales volumes have grown fivefold in the last year (with 5 products now sold every minute), and its member base has more than tripled, from 3mn in 2012 to 10mn in 2013 (90% of which are female). Westwing‟s success is also driven by its members‟ loyalty: 70% of sales come from existing members, who each complete on average 3-4 purchases per year. In summer 2013, the company launched free Android and iOS applications, as well as a new mobile website, aiming to capture the 25% of its traffic that has shifted to mobile devices.

However, not everything has gone smoothly for Westwing in the past year. Its aggressive expansion plans – and the decision to transfer Bamarang‟s (Rocket Internet‟s clone of designer furniture shopping site Fab.com – a less exclusive version of Westwing) employees to Westwing, following the former‟s closure – were followed by large losses that forced the company to lay off 15% of its employees and sell its operations in Australia, India, Sweden, Turkey and the UK.

Well-known e-commerce investor Tengelmann Ventures is the venture capital arm of the German retail giant Tengelmann (€11bn in revenues for calendar year 2012, c.84,000 employees). Founded in 2009, Tengelmann Ventures invests in e-commerce, marketplaces, Internet and web 2.0 technologies, and (as recently announced) social businesses.

Tengelmann Ventures frequently invests in companies backed by Rocket Internet, the clone factory of the Samwer brothers. The two investors have co-invested in more than 10 companies, including dafiti (Brazil’s Zappos clone), Lazada (Asia’s Amazon clone), Linio (Latin America’s Amazon clone), Mebelrama (now- defunct online furniture shop operating in Russia), Zalando (Europe’s Zappos clone) and Zalora (Southeast Asia’s Zappos clone). Tengelmann Ventures last featured in our July 2013 Bulletin for investing in the €22.9mn late stage round of online food ordering platform Delivery Hero.

December 2013

# Company Sector Round €mn Description Investors 6 Mister-Auto (France) Internet B 10.0 Operator of an online Bpifrance, Iris Capital. www.mister-auto.com Services retail platform for automotive parts and accessories. Mister-Auto (France), an operator of an online retail platform for automotive parts and accessories, raised €10mn in a Series B round led by new investor Iris Capital with support from fellow new investor Bpifrance. The company will use the investment to enter new European markets and improve its offering (i.e. diversify its payment methods and delivery options, introduce personalised customer management, and reprocess used automobile parts).

Founded in 2007, Mister-Auto is headquartered in France with 14 additional offices across Europe. Its website offers new automobile parts and accessories at up to 60% discount off the Original Equipment Manufacturer‟s (OEM‟s) price, and is delivered across 21 European countries in their native languages. The way it operates is quite simple: users input their car registration number and are then shown automobile parts for their specific vehicle. Alternatively, users can manually browse the company‟s full range of c.300,000 parts and accessories, or use its telephone advisory services for any product and installation queries. The company offers products of more than 100 OEMs – such as Bosch, Castrol, Contitech and Delphi, which manufacture parts and accessories for more than 40 car makes – as well as its own value-for- money brand „BOLK‟, which has over 2,000 Stock Keeping Units (SKUs) for all makes and models.

In its 5 years of operations, the company has garnered significant traction. It now has more than 100 employees and more than 1.5mn customers, and dispatches over 100,000 parcels per month. Since 2009, Mister-Auto has experienced a revenue CAGR of 120%, resulting in expected 2013 revenues of c.€100mn. According to the company, its average customer rating is 4.4/5, based on c.80,000 reviews.

The company was fortunate in that its launch coincided with the financial crisis, which caused car owners to keep their old vehicles longer by replacing malfunctioning parts, rather than purchasing new ones (evidenced by the UK Government‟s statistics, which show that the average annual growth in newly licensed vehicles in the UK has been 0.4% from 2008 to 2011, compared to 2.4% from 1996 to 2007). However, competition in the automotive parts space has always been fierce, including both global players such as US Auto Parts (founded in 1995), and local French competitors such as Oscaro (founded in 2001) and Yakarouler (founded in 2006). Oscaro and Yakarouler each offer c.350,000 products, although the former also sells used automobile parts, thus has access to more of the market than Mister-Auto currently does.

It is the second time that we see French investors Bpifrance (€600mn (2009); AUM €1.1bn) and Iris Capital (€170mn (2012); AUM €850mn) in this month’s Bulletin, as both firms also participated in Talend’s €29mn late stage round (see p.8). In Mister-Auto, Iris invested €6mn and Bpifrance €4mn (via its direct co- investment fund, FCID 2).Through this round, the new investors will join existing shareholders Rémi Saby (President and founder) and CM-CIC Capital Privé (the private equity arm of Groupe Crédit Mutuel-CIC, France’s second largest retail bank, which invested €6mn in the company in 2010).

Bpifrance was formed this year from a combination of existing French institutions – including FSI (specialising in fund of funds and direct investments), FSN-PME (investing in start-ups and early-stage businesses strategic to the French economy), OSEO (the state-backed bank providing soft loans to innovative SMEs) and CDC Entreprises (the private equity investment subsidiary of Caisse des Dépôts). In 2012, the company’s subsidiaries had invested more than €1.5bn in 1,000 growth companies.

Iris Capital invests actively in the e-commerce sector, with 11 companies currently in its portfolio including MedicAnimal (online retailer of healthcare products for pets and other animals; featured in our October 2010 and May 2012 Bulletins), Planetveo (French online travel agent; featured in our June 2013 issue), Travador (online travel agency) and InstantLuxe (online retailer of second-hand luxury goods).

December 2013

# Company Sector Round €mn Description Investors 7 navabi (Germany) Internet C 10.0 E-tailer for plus-size (UK DuMont Venture, Index www.navabi.tv Services 14-30) designer fashion. Ventures, Seventure.

Navabi (Germany), an e-tailer for plus-size (UK 14-30) designer fashion, raised €10mn in a Series C round led by new investor Index Ventures, with support from existing investors DuMont Venture and Seventure. The funds will be used to maintain navabi‟s rapid growth rate (according to the company its turnover is more than doubling annually) and accelerate expansion in its current international markets (primarily France, UK and the US). The investment will also be used to enter additional countries and potentially expand into other fashion categories. Founded in 2008, navabi has now raised €13.4mn in total. Before this round it had raised €0.6mn in 2010 from DuMont Venture, and €2.8mn in 2011 from Seventure with support from DuMont, to accelerate growth and expand its team, which currently counts more than 100 employees. The company claims to have been profitable since 2009, and reported €30mn revenues for calendar year 2013. With 30% of its revenues coming from the UK and the US, navabi delivers to more than 35 countries. Co-founder Maryam Navabi has long supported the idea that “fashion should be available to women of all sizes”: back in 1999, she started a bricks-and-mortar store for women‟s fashion in sizes UK 12-28 in Aachen, Germany. With offices located in the same city, and along with Bahman Nedaei (CEO and co-founder), she is now running navabi, aiming to turn it into “the premier destination for plus-size fashion worldwide by 2016”. The company offers more than 130 designer brands (including Lacoste, Fendi, Kenzo and Roberto Cavalli White, the exclusive plus-size collection of the well-known brand) – as well as its own label clothing – in sizes UK 14-30. It also offers supplementary services to enhance the overall customer experience, including a collection of outfit ideas, style advice per body type and a weekly online magazine. According to the market research house Mintel, navabi operates in a very large market: more than 50% of the European female population wears plus-sized (size UK 12 and up) clothes, and this segment is predicted to grow faster than traditional apparel sales. Further, it forecasts that the UK plus-size market will grow at 7% CAGR from 2008 to 2015, to reach c.£6bn. Thus, it comes as no surprise that an increasing number of companies – both existing and new – are stepping up efforts to serve this market. Examples include online retailer ASOS (which in 2010 launched a plus-size category called ASOS Curve, with sizes UK 14-24), Gabriella Rossetti (a high-end line of women‟s clothing, ranging from sizes UK 12-22, that launched in 2013), and even Abercrombie & Fitch (which announced that will start offering plus-sizes for some of its women's clothes online in 2014, after its CEO Mike Jeffries caused controversy with his statement that the brand targets only “cool, good-looking people”). German-based existing investor DuMont Venture is the VC arm of German media corporation M. DuMont Schauberg. A relatively early-stage investor, it invests between €0.5 and €2mn in German digital media and IT businesses. The last time we saw the firm was in June 2012, participating in the €15mn Series C round of German food ordering platform yourdelivery. Index Ventures (€350mn (2012); AUM €1.5bn), one of very few European investors that have successfully expanded globally, has a portfolio of more than 100 tech and life sciences companies. Its interest in fashion e-tailers is clearly demonstrated through its investments in other well-known companies, such as ASOS, farfetch and net-a-porter. The firm is a regular in our Bulletin, and was last featured in last month’s issue for its role as a seller in SoftBank’s €2.2bn acquisition of Supercell. Last time we mentioned Seventure Partners (€120mn* (2013); AUM €540mn) was back in August 2012, as an exiting investor of LeGuide.com, which was acquired by Lagardere for c.€100mn. A French investor founded in 1983, it is an affiliate of Natixis Private Equity. It provides venture and growth capital to European software, internet, electronics, telecom and life sciences companies. *The fund is still open; €62mn has been raised to date, out of a targeted €120mn.

December 2013

# Company Sector Round €mn Description Investors 8 Plumbee (UK) Internet B 9.6 Operator of a social Endemol, Idinvest Partners. www.plumbee.com Services casino games app.

Plumbee (UK), an operator of a social casino games app, raised $13mn (€9.6mn) in a Series B round led by new investor Endemol with support from existing investor Idinvest Partners. The funds will be used for further development of the company‟s existing games and to finance new ones, leveraging the value created by Endemol‟s entertainment brands. This investment reportedly values Plumbee at $40mn (€29mn). Founded in 2011, London-based Plumbee creates, operates and markets virtual slot games through its „Mirrorball Slots‟ app (available for free on Facebook, iOS, and soon on Android). The app currently features 11 games, each modelled on a casino-like slot machine but with different themes (e.g. Rapunzel, Snow White). The user bets on different pay lines, and various combinations of symbols net different amounts of virtual winnings. Like most social games, they are free-to-play but users can purchase virtual credits to unlock more features, get upgrades, etc. Plumbee itself developed only one of the 11 games – Thumbelina‟s Forest (based on the fairy tale of Thumbelina). The other 10 were developed by Plumbee‟s strategic partner Quickspin, a Swedish video slots development studio, which also provides online gambling company bet365 with many of its games. Plumbee has announced that, in future, it aims to divide development of new games equally between its in-house team and Quickspin. Further, it has formed Bonza Gaming, a joint venture with Malta-based online gambling company Unibet, which offers Facebook gambling apps Bonza Slots and Bonza Casino, through which users can bet real money. Plumbee is one of the first companies (along with online gaming providers 888 and Gamesys) to launch real-money Facebook gambling games. With only $2.8mn (€2mn) raised prior to this round, Plumbee has grown quickly, while developing a well- reviewed product, frequently praised for its top notch presentation (graphics, sound, etc.) by gaming editorial websites such as gamezebo.com and insidesocialgames.com. Its Mirrorball Slots app has more than 1.2mn monthly users and 250k daily users, and is currently ranked among the Top 10 highest grossing social casino games on Facebook. The company has more than 50 employees and revenues that exceeded £10mn (€12mn) in 2012. According to IT research company Gartner, the mobile gaming market is expected to exceed $22bn (€16bn) by 2015, having grown at a CAGR of c.30% between 2013 and 2015. The high growth potential of this segment has been demonstrated by notable transactions covered in our Bulletin, both on the investment and M&A fronts, two recent examples being the €16.1mn Series B round of Iceland / US social trivia quiz app developer Plain Vanilla (see profile on p.8) and Softbank’s €2.2bn acquisition of Finnish mobile games developer Supercell (October 2013). Strategic investor Endemol is the Amsterdam-based TV and digital production company behind a number of popular reality and game shows, including Big Brother, Deal or No Deal and Wipeout. The company started building a digital presence a few years ago, primarily through licensing its show brands for mobile apps, such as The Million Pound Drop app (which has over 2.5mn downloads to date). In October, the company announced it will create (in-house and/or through partnerships with developers) mobile apps for more of its shows, starting with Deal or No Deal and Pointless. It also announced, in November, a $40mn (€29mn) investment in Endemol Beyond, a new online video network. This is the second time Paris-based Idinvest Partners (€281mn (2013); AUM €4.1bn) features in this issue (see also Talend’s profile on p.8). A lower mid-market private equity and venture capital firm with a focus on the IT industry, Idinvest has built a strong portfolio of more than 5 social and/or mobile games (including casino games) companies. This includes its May 2011 €2.8mn investment in French social gaming company Pretty Simple, its June 2012 €5.7mn investment in Spanish social games developer Social Point, and its participation in Finnish mobile and social games developer Grand Cru’s €8.5mn Series B round. Idinvest is investing €0.7mn of this €9.6mn round, and was the sole investor in Plumbee’s March 2012 €2mn Series A round.

December 2013

# Company Sector Round €mn Description Investors 9 MyOptique Group (UK) Internet Late 9.6 Online optical retailer. Acton Capital Partners, myoptiquegroup.com Services Stage Cipio Partners, Highland Capital Partners, Index Ventures. MyOptique Group (UK), the operator of optical e-tailing sites Glasses Direct, Sunglasses Shop, LensOn and MyOptique, raised £8mn (€9.6mn) in a Late Stage round led by existing investors Acton Capital Partners, Highland Capital Partners and Index Ventures with support from new investor Cipio Partners. The investment is expected to facilitate additional acquisitions and allow further development of the company‟s own sunglasses‟ brands. MyOptique is currently exploring the possibility of an IPO on the LSE‟s AIM market following its selection in “Future Fifty”, an initiative run by Tech City UK and the UK government to identify and support high-growth businesses looking to float on the LSE.

This is the third time we see MyOptique Group in our Bulletin. It previously featured – under the name Prescription Eyewear – for its £10mn (€10.7mn) Series B round in April 2009 and its £10mn (€12mn) late stage internal round in June 2012. These rounds were used to support expansion into the US market and acquire Swedish contact lens e-tailer LensOn, respectively.

Following the 2012 fund-raising, the company changed its name to MyOptique Group to reflect its status as a full-service optical provider. MyOptique Group now comprises four optical e-tailing subsidiaries – Glasses Direct, Sunglasses Shop, LensOn and MyOptique (ordered by date of acquisition or launch). Glasses Direct, the company‟s founding website, was launched in 2004, gathering early traction as one of the first e-tailers of prescription glasses. Due to reduced costs (in comparison to bricks-and-mortar optical retailers), the site is able to offer glasses at discounted prices – in addition to a range of customer services, such as qualified opticians available over the phone. Sunglasses Shop, a European online retailer of designer sunglasses, was acquired in 2011 for an undisclosed amount, to expand MyOptique Group‟s coverage in sunglasses e- tailing. Similarly, the aforementioned LensOn was acquired from Verdane Capital in 2012 for a rumoured price of c.€19mn, following MyOptique Group‟s 2012 fund-raise. In addition to expanding into another market sector (contact lenses), LensOn‟s operations across France, Germany, Scandinavia and the UK enabled MyOptique Group to expand its European presence. Finally, the MyOptique subsidiary is a highly curated online optical boutique launched in 2012. The company has also developed two eyewear brands – London Retro and Scout, which it claims are the two fastest growing brands on GlassesDirect.com. The company reported £35mn (€42mn) revenues for the calendar year 2013 – a 17% increase from calendar year 2012.

As noted in our January 2013 issue, scientific optical blog eyesonscience sizes the European eyewear market at c.€25bn, with only 3-4% of this online. Accordingly, the investment activity in eyewear e-tailers has been increasing – recent features in our Bulletin include French Sensee’s June 2012 €17.5mn Series A round and German Brille24’s September 2012 €12mn Series B round.

Lead investor Acton Capital Partners (€150mn (2010)) most recently featured in our February 2013 issue for investing in German baby products e-tailer Windeln.de’s €15mn Series C round. Acton specialises in European consumer-oriented internet and mobile businesses.

New investor Cipio Partners (€140mn (2011); AUM €300mn) last featured in our October 2012 issue for its participation in image analysis software provider Definiens’ €10mn late stage round. Base in Munich, Cipio focuses on growth businesses in Europe, Israel and North America.

Highland Capital Partners (€280mn (2013); AUM €2.8bn) last featured in our May 2013 issue for participating in private shopping club Privalia’s €25mn late stage round. Founded in 1988, the Silicon Valley- based venture capital firm has invested in more than 225 communications, consumer, IT and healthcare companies. In October 2013 it secured $400mn (€280mn) for its ninth fund.

Global investor Index Ventures (€350mn (2012); AUM €1.5bn) focuses on tech companies and is further described above, through its participation in navabi’s Series C €10mn round.

December 2013

# Company Sector Round €mn Description Investors 10 Ticketland (Russia) Internet A 7.3 Traditional ticketing agent iTechCapital. www.ticketland.ru Services and provider of an online ticketing platform.

Ticketland.ru (Russia), a traditional ticketing agent and provider of an online ticketing platform, raised $10mn (€7.3mn) in a Series A round led by new investor iTechCapital. The investment will be used to enhance the company‟s online channel and increase e- ticketing as a percentage of sales from 15% to a targeted 50%. It will also facilitate the roll-out of new Big Data-based services, which will capture and analyse online users‟ behaviour, allowing Ticketland to better target potential ticket buyers.

The group includes three ticketing subsidiaries: Arena Group, MDTZK and United Art Tickets, which operates Ticketland.ru. Arena Group provides a range of software solutions for sports facilities (ticketing platforms, entry control systems for fans, etc.) and is currently used by 35 Russian sports clubs. MDTZK is the oldest (having operated for c.90 years) and largest ticket retail chain in Moscow, with 130 outlets (including partners) that sell tickets for more than 5k events daily; it was acquired by iTechCapital in 2012 for RUB 493mn (€12mn) and, following this investment round, has been consolidated into the Ticketland group. Finally, Ticketland.ru is an online platform where consumers can buy tickets for concerts, theatre, shows and sports events, and also offers an Enterprise Resource Planning (ERP) system to improve venue capacity utilisation (currently deployed by 90 venues).

Ticketland claims to be the largest event ticketing group in Eastern Europe, with revenues exceeding $120mn (€88mn) for calendar year 2013. Its business model is primarily driven by a 10% commission on ticket sales. Further, the group claims a 50% share of the theatre ticketing market in Moscow, and shares of between 10% and 30% for other event types. Ticketland has more than 400 employees and sells of over 2mn tickets for 40k events annually. iTechCapital claims that the total ticketing market in Russia (excluding cinema) exceeds $1bn (€730mn) and is growing more than 20% annually. According to Buran Venture Capital, though, e-ticketing accounts for only 5% of the country‟s total ticket sales. The reason for this is that some market players do not want to invest in special equipment to enable e-ticketing, while others are simply unaware of the technology. In comparison, e-ticketing penetration is much higher in Western Europe (e.g. 50% in Germany, 70% in the UK) and the US (80%) (Commerzbank, 2012).

The large and growing ticketing opportunity in Russia, as well as the limited penetration of online solutions, justifies the growing interest of investors that has been recently reported. For example, Moscow-based Buran Venture Capital invested $1.5mn (€1.1mn) in Russian online provider of show tickets Ponominalu.ru in March, and Radario.ru, another provider of e-tickets for entertainment events, raised $1.2mn (€0.9mn) in June from an undisclosed group of investors.

This is the first time that iTech Capital (€58mn (2011)) features in our Bulletin. Founded in 2011 by private equity veteran Gleb Davidyuk, the Russian venture capital and private equity fund invests up to $10mn (€7mn) in IT, internet, new media and e-processing growth companies.

In addition to Ticketland, the company’s portfolio includes 6 other e-commerce related Russian companies: Garpun (professional online ad management tools), Giftofoni (social gifting application), iConText (search engine marketing services), QIWI Post (automated postal kiosks), SeoPult (online SEO and e-advertising management platform) and The Battle Of Brands (application where users vote over 2 competing brands).

The interest of investors in Russian tech start-ups has intensified in the last years as the country is the sixth largest globally in terms of internet users (c.68mn) and the largest in Europe (Internet World Stats, 2012). This trend is also illustrated through our HTI Bulletin: the number of investments in Russian companies has grown from zero in 2009 and 2010, to 4 in 2011, 7 in 2012, and 7 in 2013 with total transaction values also increasing.

December 2013 2.1 - M&A Activity Index Disclosed Global TMT M&A Transactions European Deals 2012 (€mn) European Deals 2013 (€mn) Global Deals 2012 (€mn) Global Deals 2013 (€mn) 500 # of Global Deals 2012 # of Global Deals 2013 30,000 450

25,000

400

mn) € 350 20,000 300

250 15,000

# of Deals Month Deals of # per 200 10,000 150 ( perMonth Value Deal

100 5,000 50

0 0 (1) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Capital IQ; Go4Venture Advisers Analysis (1) Includes Dell acquisition by Silver Lake for €22.3bn (2013)

Disclosed European VC & PE-Backed TMT M&A Transactions >£30mn / €35mn / $50mn Value of Deals 2012 (€mn) 20 4,500 Value of Deals 2013 (€mn) 18 # of Deals 2012 4,000 # of Deals 2013 16

3,500

14 mn) 3,000 € 12 2,500 10 2,000 8 1,500 # of Deals Month Deals of # per 6

4 1,000 ( perMonth Value Deal 2 500 0 0 Jan Feb Mar (1) Apr (2) May Jun(3) Jul Aug Sep Oct Nov Dec Source: Capital IQ; The 451 Group; VentureSource (including transaction value estimates); Go4Venture Advisers Analysis (1) Includes NDS acquisition by Cisco Systems for €3.8bn (2012) (2) Includes ista International acquisition by CVC Capital Partners for €3.1bn (2013) (3) Includes Elster acquisition by Melrose for €2.3bn (2012)

Disclosed European VC & PE-Backed TMT M&A Transactions (2013) > £30mn / €35mn / $50mn Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Monthly Number # 1 3 3 4 5 7 3 6 5 2 1 3 Value €mn 360 202 275 3,479 1,746 1,728 625 1,546 367 2,286 1,290 397 Median €mn 360 72 83 157 100 129 67 236 66 1,143 1,290 145

Cum. Number # 1 4 7 11 16 23 26 32 37 39 40 43 Value €mn 360 562 837 4,315 6,061 7,790 8,414 9,960 10,327 12,613 13,903 14,300 Median €mn 360 65 85 83 94 94 122 111 100 100 97 100

December 2013 2.2 - Top 5 Global TMT M&A Transactions Summary Ranked by Price (€mn) in descending order (includes announced and/or completed deals) Target Price Rev. Noteworthy # Target & Acquirer Sector (€mn) (€mn) P/R Sellers 1 LSI Corporation (US NASDAQGS:LSI) Semiconductors 4,795 1,740 2.8x - www.lsi.com

Avago Technologies (US NASDAQGS:AVGO) www.avagotech.com

Avago Technologies, a designer of analog semiconductor devices, will acquire LSI Corporation, a storage and networking devices provider. US-based LSI Corporation provides chips and cards for flash storage, hard disk drives and data centre networks. It also offers a range of chips customised for mobile networks (including processors enabling 4G/LTE communications), as well as cards, host bus adapters and switches for server storage. With c.5,100 staff and operations in 14 countries, the company reached €1.8bn in December 2013 (5% year-on-year decline). Formerly known as LSI Logic, the company changed its name after its acquisition of Agere - the former chip division of Lucent Technologies (for $3.5bn (€2.6bn)) in 2007. Singapore-based Avago Technologies provides a range of analog semiconductor-based devices that principally target the wireless communication, wired infrastructure and industrial markets (e.g. fibre optics, light-emitting diodes, motion control). The company, with c.4,800 employees across Asia (42%), Europe (6%) and North America (52%), and more than 5,000 patents, reached c.€1.9bn in revenues in November 2013 (6% year-on-year growth). Avago began as the semiconductor division of HP (and later Agilent Technologies) before spinning out in 2005 through a €2.2bn LBO by private equity firm Kohlberg Kravis Roberts (KKR) and specialist tech investor Silver Lake. The company was listed on Nasdaq in 2009 through a $650mn (€467mn) IPO, which valued the company at c.$7bn (€5bn). The LBO was one of Silver Lake's most successful deals with a 5x return on investment within seven years. Silver Lake sold the remainder of its investment last year, but retains a board seat. Avago last featured in our April 2013 Bulletin, when it acquired optical transceivers and transponder provider CyOptics for c.€300mn. The acquisition of LSI will expand Avago’s offering of complementary solutions (e.g. enterprise storage devices) and strengthen its position in wired infrastructure. The deal will be primarily financed by $4.6bn (€3.4bn) term loan from banks and $1bn (€730mn) from Silver Lake. This transaction is 2013's second largest in the semiconductor industry, after US-based Applied Materials' $9.4bn (€7.1bn) acquisition of Japan-based Tokyo Electron, which featured in our September 2013 Bulletin. 2 Responsys (US NASDAQGS:MKTG) Application 1,239 143 8.7x Accel Partners, www.responsys.com Software Foundation Capital, Lighthouse Capital Oracle (US NYSE:ORCL) Partners, Redpoint, www.oracle.com Sigma Partners.

Oracle, the global enterprise software giant, will acquire Responsys, a marketing software provider. US-based Responsys provides a B2C cloud-based platform that enables companies to execute coordinated and trackable marketing campaigns. The platform (integrated with data sources such as Adobe's SiteCatalyst, IBM's Coremetrics and Salesforce.com) enables companies to better target their marketing communication by analysing collected data and customer behaviour, as well as to fine-tune campaigns in real-time and generate marketing performance reports (among other functions). Campaigns rely on a suite of tools including customised emails, text messages, social networks and website landing pages, as well as display ads. With c.870 employees, the company (having previously announced 27% year-on-year growth for Q3 2013) reached revenues of €150mn for the full year 2013. Responsys' clients include companies such as Epson, JetBue, Lenovo and Lufthansa. US-based Oracle is one of the world’s largest enterprise software companies. The company provides a broad range of cloud- based applications (e.g. enterprise resource planning, supply chain management), database systems and the ubiquitous programming language, Java. It also offers hardware including servers, storage and tape systems, as well as networking and data centre infrastructure products. Oracle, which last featured in our February 2013 Bulletin when it acquired the Voice over IP network equipment provider Acme Packet, reached revenues of €27bn in financial year ended May 2013 (the same as the previous year) and has c.120,000 employees. It has more than 25mn users, 4,000 partners including big names such as Cap Gemini, Deloitte, Hitachi, IBM, Fujitsu and HP, and serves more than 10,000 enterprise customers. Responsys will become part of Oracle's expanding SaaS product portfolio. First, it will complement its B2B cloud-based marketing platform Eloqua, which it acquired for €730mn in December 2012, allowing the company to become one of the few providers of B2C and B2B marketing tools from a single platform. Secondly, it fits with Oracle's strategy of reinforcing its cloud services, revenues from which the company sees as a key source of growth for 2014. This acquisition also reflects the demand for marketing software companies, demonstrated by a number of featured M&A transactions including acquisition of French marketing automation SaaS provider Neolane for €455mn and Salesforce.com's purchase of digital marketing SaaS provider ExactTarget for €1.8bn, both featured in our June 2013 Bulletin.

December 2013

Target Price Rev. Noteworthy # Target & Acquirer Sector (€mn) (€mn) P/R Sellers 3 Digital Insight (US) Application 1,205 249 4.8x Thoma Bravo. www.digitalinsight.com Software

NCR (US NYSE:NCR) www.ncr.com

NCR, an Automated Teller Machine (ATM) and retail systems provider, will acquire Digital Insight, an online and mobile banking software developer. US-based Digital Insight provides financial institutions with online and mobile banking software for retail customers and small businesses. Its offers a customisable cloud-based platform enabling third party integration, payments and transfers for online banking, as well as free mobile banking apps for smartphones and tablets (Android, iPad, iPhone and Kindle). The company serves more than 1,000 financial institutions with c.12mn banking customers and c.5mn mobile users. With c.780 employees, it reached revenues of $330mn (€255mn) in fiscal year ended July 2013. Formerly known as Intuit Financial Services, the company changed its name to Digital Insight in July 2013 when Thoma Bravo acquired Intuit's financial services business, covered in our July 2013 Bulletin. NYSE-listed NCR is a US-based provider of diversified financial technology solutions. The company provides ATMs and the technology surrounding them, including security systems, software and Point Of Sale (POS) terminals for various types of business (e.g. cinemas, petrol stations). It also has c.13,000 consultants and technology support experts for telecoms and OEMs. With its portfolio of hardware, software and services, NCR enables more than 450mn financial transactions daily. The company has over 26,000 employees across 180 countries and expects €4.6bn 2013 revenues, a 10% increase over 2012. Through this acquisition, NCR aims to improve its financial services offering by strengthening its mobile and online banking technology. The acquisition will also enlarge the company's customer base in the mid-market retail banking segment that Digital Insight currently targets. This transaction comes along with NCR's acquisition of UK-based secure transaction switching and fraud prevention software Alaric Systems (see profile on p.24). NCR acquired both companies according to its strategy of transformative acquisitions across all of its core businesses, and its goal of offering a single solution for ATM, branch, mobile, commerce and internet banking services. 4 Mandiant (US) Application 767 N/A - KPCB, One Equity www.mandiant.com Software Partners.

FireEye (US NASDAQGS:FEYE) www.fireeye.com

FireEye, a cybersecurity software provider, will acquire Mandiant, another cybersecurity software provider. US-based Mandiant provides security software such as Mandiant Platform, which analyses and resolves enterprise network security gaps, as well as Mandiant Managed Defense, which offers real-time threat intelligence enabling companies to develop preventive security measures. Mandiant also provides companies with subscription and appliance-based services, informing them about threat group behaviour, how to protect against attacks and the impact of attacks should they occur. With c.330 staff and a three year revenue CAGR of 50%, Mandiant reached revenues of $100mn (€75mn) in 2013, of which 50% came from endpoint products and security service subscriptions. US-based FireEye provides a range of threat prevention platforms and services. Its platforms block attacks that traditional and even next-generation anti-malware programs, firewalls and web gateways miss, such as content-based, mobile and zero-day attacks. Analysing incoming threats through its proprietary detection platforms, FireEye provides real-time threat intelligence and predicts attacks by geography, industry, target customer and technical footprint. With c.1,100 customers, including c.100 of the Fortune 500 and 40 state military operations around the world, the company reached revenues of c.$160mn (€120mn) in 2013 and employs c.1,100 staff. Formerly backed by venture capital firms including Gold Hill Capital, Goldman Sachs and Sequoia Capital, FireEye went public in a $305mn (€227mn) IPO in September 2013, at a valuation of more than $2.3bn (€1.6bn). This acquisition comes as a natural expansion of the companies' strategic partnership (agreed in April 2012) and integrated product offering (announced in February 2013). Through this deal, FireEye has acquired a complementary offering including endpoint security, incident response and remediation solutions, and will also benefit from Mandiant's deep security and incident response expertise. This acquisition fits FireEye's goal of creating a company capable of delivering cybersecurity protection at all stages of the attack lifecycle, in both computer networks and endpoints.

December 2013

Target Price Rev. Noteworthy # Target & Acquirer Sector (€mn) (€mn) P/R Sellers 5 Dealer.com (US) Application 726 173 4.2x Accel Partners, www.dealer.com Software Apax Partners, Klass Capital. Dealertrack Technologies (US NASDAQGS:TRAK) www.dealertrack.com

Dealertrack Technologies, a provider of software for the automotive industry, will acquire Dealer.com, a provider of marketing and operations software for use in automotive retail. US-based Dealer.com provides solutions for original equipment manufacturers (OEMs), car dealers and advertising agencies. It offers tools for delivering behaviourally targeted online ad campaigns, an inventory management platform, a CRM (that is also available on mobile), as well as analytics software and a range of services around its products. Dealer.com's partners include well-known institutions, such as Craigslist, eBay, Facebook, Google and Yahoo!, for which it connects to their respective ad networks and exchanges to improve the impact of ad campaigns run on its software. With c.830 employees, the company (ranked 185 on Deloitte's 2013 Technology Fast 500 list), serves c.7,000 US car dealers. The company announced revenues in excess of $230mn (€173mn) for 2013. US-based Dealertrack Technologies provides software and SaaS for retailers, financing providers and OEMs in the automotive industry. It offers a range of solutions including real-time organisation and data management systems for independent or franchised dealers, mobile-based inventory management tools, as well as insurance, financial and sales software. The company also provides vehicle registration and titling, as well as a suite of interactive marketing SaaS apps (e.g. managed chat, search engine optimisation). It serves more than 1,200 car financing providers and c.19,000 dealers in the US (including well-known companies like Mercedez-Benz and Volvo), and has partnered with companies including the American Honda Finance Corporation. With over 2,000 employees, the company reached revenues of €334mn for the twelve months ending September 2013, a 20% year-on-year increase. Acquiring Dealer.com will strengthen Dealertrack's position in the North American automotive retail industry, in terms of both product offering and customer base. This is Dealertrack's largest acquisition, out of 27 completed to date. The companies will together be able to offer a one-stop technology shop for almost all stakeholders in the automotive retail industry. Source: Capital IQ; The 451 Group; Go4Venture Advisers Analysis Key Bold indicates name of Target Italic indicates name of Acquirer P/R – Price / Last 12 Months Revenues

December 2013 2.3 - Headline European VC & PE-Backed M&A Transactions

(> £30mn / €35mn / $50mn), includes announced and/or completed deals where price is available LTM Target Price Rev. Funding # Target & Acquirer Sector (€mn) (€mn) P/R (€mn) P/F Noteworthy Sellers 1 Realtime Technology Application 194* 84 2.3x N/A N/A Balderton Capital, (Germany XTRA:R1T) Software Siemens Venture www.rtt.ag Capital.

Dassault Systèmes (France ENXTPA:DSY) www.3ds.com

*Implied enterprise value for 100% of Reatlime Technology.

2 Sofort (Germany) Application 145 64† 2.3x N/A N/A Reimann Investors www.sofort.com Software Advisory.

Klarna (Sweden) www.klarna.com

†Estimated based on stated combined revenues less Klarna 2013 revenues. 3 Alaric Systems (UK) Application 57 14 4.0x N/A N/A Foresight Group, www.alaric.com Software Mobeus Equity Partners, NVM NCR (US NYSE:NCR) Private Equity. www.ncr.com

Source: Capital IQ; The 451 Group; VentureSource; Go4Venture Advisers Analysis

Key Bold indicates name of Target P/R – Price / Last 12 Months Revenues Italic indicates name of Acquirer P/F – Price / Total Funding

P/F>1x indicates an investment where all investors have made a positive return on their investment. P/F<1x indicates poor returns for some, but early or late investor entrants may still show a positive return on their investment.

December 2013

Target Price LTM Rev. Funding # Target & Acquirer Sector (€mn) (€mn) P/R (€mn) P/F Noteworthy Sellers 1 Realtime Technology Application 194* 84 2.3x N/A N/A Balderton Capital, (Germany XTRA:R1T) Software Siemens Venture www.rtt.ag Capital.

Dassault Systèmes (France ENXTPA:DSY) www.3ds.com *Implied enterprise value for 100% of Reatlime Technology.

Realtime Technology (Germany XTRA:R1T), a 3D design software and services provider, will be 84% acquired by Dassault Systèmes (France ENXTPA:DSY) for €170mn. The primary sellers are Balderton Capital and Siemens Venture Capital.

Founded in 1999, Germany-based Realtime Technology (RTT) offers Computer Generated Imagery (CGI) software for authoring, managing and distributing CGI. RTT‟s most established brand is DeltaGen, a suite designed primarily to produce early renderings of aircraft, automobiles and other high-value items for marketing purposes. PictureBook (CGI content management) and DeltaView (web serving systems) are also among its key products. Further, the company offers in-house CGI design and full-fledged marketing services to advertisers. RTT‟s offering is geared towards „experience‟-driven marketing, enabling consumers to see and virtually interact with products early in their lifecycles. Historically, the company has grown organically and has only made one acquisition (Bunkspeed, a US-based competitor, in October 2013 for an undisclosed sum). By the time of the deal, RTT employed c.800 people. In 2012, the company had net income of €5.1mn on revenues of €74mn, up 34% from 2011‟s revenue of €54mn. Balderton Capital invested €7mn in the company in December 2007, and was joined by Siemens in August 2010, which invested an undisclosed amount.

Dassault Systèmes is a France-based CGI software provider. Though publicly listed, the company remains majority-owned by Dassault Group, better known for its commercial and military aircraft, following its spin-out in 1981. Dassault Systèmes has since diversified beyond Computer-Aided Design (CAD) software into software and services for CGI-aided product mock-ups and product lifecycle management. The company employs c.10,000 staff and serves more than 170,000 customers. It has acquired at least one company per year since 2000 and, in 2013, acquired nine companies including RTT, its largest deal of the year. The acquisition of RTT will continue Dassault Systèmes‟ development as a provider focused on 3D software. Additionally, RTT will bring a large staff with expertise in experience-driven marketing, which Dassault has announced a strong interest in supporting.

Well-known to our readers is London-based Balderton Capital (€373mn (2008); AUM €1.5bn). It is the second time it features in our Bulletin this month, as it was also involved in provider of open source data integration, quality and management tools Talend’s €29.2mn late stage round.

Although we don’t see Siemens Venture Capital (SVC) (€135mn (2010); AUM €800mn) that often in our Bulletin, the Germany-based venture capital arm of Siemens is quite active. To date, it has invested in more than 150 companies of all stages in the energy, healthcare and industry sectors. Naturally, it prefers companies that can leverage Siemens’ strengths (e.g. industry know-how and related products). The last time we saw the investor was in June 2012, when it participated in a €12mn Series C round in Power Plus Communications (German provider of powerline communications technology for smart grid infrastructure).

December 2013

Target Price LTM Rev. Funding # Target & Acquirer Sector (€mn) (€mn) P/R (€mn) P/F Noteworthy Sellers 2 Sofort (Germany) Application 145 64† 2.3 N/A N/A Reimann Investors www.sofort.com Software Advisory.

Klarna (Sweden) www.klarna.com

†Estimated based on stated combined revenues less Klarna 2013 revenues. SOFORT (Germany), a provider of online payment solutions, will be acquired by Klarna (Sweden) for €145mn. The seller is the family office Reimann Investors Advisory. Founded in 2005, Germany-based SOFORT offers an online payment system („SOFORT Banking‟), which allows its users to make payments by simply inputting their bank account details, without having to register. The system is currently used by more than 25,000 online retailers and processes c.2.5mn transactions per month. A key competitive advantage is its high level of security: it has been certified by Germany‟s Technical Inspection Association (TÜV) and, despite having more than 45mn transactions to date, has never had a customer fraud case. The company also offers PAYCODE (an online immediate wire transfer system) and SOFORT Ident (an online identity verification system). With 130 employees, the company is headquartered in Germany, with additional offices in Belgium and Poland. Launched in 2004, Sweden-based Klarna offers online payment solutions for e- stores. Its main product, Klarna Checkout, allows its users to place online orders through a frictionless process: the only requirement is entering their e- mail and postal address (instead of registering, entering bank details, etc.). Klarna performs a quick background check of this information and – relying on its patented anti-fraud technology – assumes all the risk for fraud and credit loss. Customers can pay for the purchased items later (e.g. by invoice or instalments). Klarna has also developed a mobile solution (currently available only in Sweden) aiming to capture shoppers using mobile devices (according to the company, c.20% of all e-commerce traffic). With around 900 employees, Klarna‟s revenues grew from SEK 20.2mn (€2mn) in 2008 to SEK 1,178mn (€136mn) in 2012 – a CAGR of 126%. The company has raised c.$250mn (€183mn) to date from top tier investors (e.g. Atomico, General Atlantic, Sequoia Capital), and its most recent $155mn (€113mn) Series C round (featured in our December 2011 issue) was at a reported valuation of c.$1bn (€0.7bn). According to Klarna, the acquisition of SOFORT will create one of the largest independent payments services providers in Europe. The „new‟ Klarna will cover 12 European countries (from 7), have 25mn users (from 13mn), an e-tailer network of 43,000 (from 18,000), and €200mn revenues (from €136mn). This acquisition will also strengthen its position against competitors, including e-Bay‟s PayPal, which had $6.6bn (€4.8bn) revenues in 2013 and 137mn users. This is the first time that German-based family office Reimann Investors Advisory features in our Bulletin. The investor is active across different asset classes (including companies, stock markets, commodities and bonds), but prefers mid-sized companies operating in high-growth sectors. Potentially unknown to our readers, Reimann is one of the wealthiest German families, with its members reported to have a combined fortune in excess of $19bn (€14bn). The Reimanns own more than 10% of Reckitt Benckiser (the FTSE 100-listed multinational consumer goods company behind brand-names such as Dettol, Nurofen and Durex, that in the past was fully owned by their ancestors), Labelux Group (which operates luxury retail brands, such as Bally and Jimmy Choo) and Coty (a global beauty products manufacturer known for its cooperation with designers and celebrities for the creation of fragrances).

December 2013

Target Price LTM Rev. Funding # Target & Acquirer Sector (€mn) (€mn) P/R (€mn) P/F Noteworthy Sellers 3 Alaric Systems (UK) Application 57 14 4.0x N/A N/A Foresight Group, www.alaric.com Software Mobeus Equity Partners, NVM NCR (US NYSE:NCR) Private Equity. www.ncr.com

Alaric Systems (UK), a provider of payment solutions, will be acquired by NCR (US NYSE:NCR) for €57mn in cash. The primary sellers are Foresight Group, Mobeus Equity and NVM Private Equity.

Founded in 1997, UK-based Alaric Systems provides a range of payment

solutions, its most well-known products being Authentic (payment platform) and Fractals (fraud detection and prevention software). Both products are certified by PA-DSS, the global security standard for software vendors developing

payment applications. The company serves c.50 financial institutions and powers more than 1.6bn financial transactions per month across 30 countries. With c.120 employees in 6 offices, the company‟s revenues reached £10.4mn (€12.5mn) in the financial year ending March 2013, a 20% increase over 2012. NVM became involved in 2000 when it invested £1mn (€1.2mn) in Alaric‟s first funding round, and Foresight Group in 2002 through a Series B round (undisclosed amount). Mobeus joined later, in 2008, when it took over full management of a fund that was previously jointly managed with Foresight.

NYSE-listed NCR is a US-based provider of diversified financial technology

solutions. The company provides ATMs and the technology surrounding them, including security systems, software and POS terminals for various types of business (e.g. cinemas, petrol stations). It also has c.13,000 consultants and

technology support experts for telecoms and OEMs. With its portfolio of hardware, software and services, NCR enables more than 450mn financial transactions daily. The company has over 26,000 employees across 180 countries and expects €4.6bn 2013 revenues, a 10% increase over 2012.

Through this acquisition – and that of US-based ATM and retail systems provider Digital Insight, which is profiled in the Top 5 M&A section (see p.19) – NCR aims to become a one-stop-shop in financial solutions, positioned to offer a complete enterprise platform for the entire transaction value chain.

Foresight Group (€97mn* (2012); €580mn AUM), founded in 1984, is a UK-based venture capital and private equity firm. It invests across all sectors with specialist teams focused on infrastructure and solar. Foresight last appeared in our February 2013 issue through exiting its investment in another financial software provider FFastFill (software for electronic trading), which was 77% acquired by ION Trading (multi-asset trading software) for €94mn.

Mobeus Equity Partners (€29mn (2005); €187mn AUM), a UK-based private equity and venture capital firm, was formed in 2012 after an MBO of Matrix Private Equity Partners from Matrix Group. It invests primarily in MBOs, but also gets involved in secondary buyouts, partial exits and recapitalisations, as well as making growth equity investments and providing acquisition finance.

NVM Private Equity (€40mn (2005); €248mn AUM) is a UK-based private equity firm interested in MBOs, growth equity and acquisition financing. Founded in 1984, it invests €2-10mn in UK companies across a broad range of sectors.

Both Mobeus and NVM last appeared in our November 2012 issue, selling their stakes in Tikit Group (IT services for legal and accountancy firms), which was acquired by BT for €74mn.

*The fund is still open; €60mn has been raised to date, out of a targeted €97mn.

December 2013 List of Acronyms

Financial Terms: k: used as abbreviation for 1,000 (for example, €1k means €1,000) mn: million bn: billion

AUM: Assets Under Management CAGR: Compound Annual Growth Rate EBIT: Earnings Before Interest and Tax EBITDA: Earnings before Interest, Taxes, Depreciation and Amortisation ECM: Equity Capital Markets EV: Enterprise Value IPO: Initial Public Offering LBO: Leveraged Buyout MBO: Management Buyout LTM: Last Twelve Months M&A: Mergers and Acquisitions P/E: Price to Earnings ratio P/F: Price to Funding ratio PE: Private Equity PIPE: Private Investment in Public Equity VC: Venture Capital

Business / Technical Terms: ATM: Automated Teller Machine CAD: Computer-Aided Design CGI: Computer Generated Imagery ERP: Enterprise Resource Planning MENA: Middle East and North Africa OEM: Original Equipment Manufacturer RRP: Recommended Retail Price SKU: Stock Keeping Units

December 2013

Go4Venture Advisers LLP

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This report was published on January 31, 2014

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