Marketing, Media, Technology, and Service Industries M&A & August 2011 Investment Summary Expertise. Commitment. Results. TABLE OF CONTENTS Overview of Monthly M&A and Investment Activity 3 Monthly M&A and Investment Activity by Industry Segment 6 Additional Monthly M&A and Investment Activity Data 25 About Petsky Prunier 33 M&A & INVESTMENT SUMMARY AUGUST 2011 2 MARKETING, MEDIA, TECHNOLOGY, AND SERVICE INDUSTRIES Transaction Distribution • A total of 241 deals worth approximately $21.5 billion were announced in August 2011 • Digital Media/Commerce was the most active segment with 103 transactions • Software & Information was the highest value segment worth approximately $16.2 billion • Strategic buyers announced 95 deals for approximately $16.7 billion (40% of total volume) • VC/Growth Capital investors announced 138 deals for approximately $2.0 billion • Buyout investors announced 8 deals for approximately $2.8 billion AUGUST 2011 BUYER/INVESTOR BREAKDOWN Transactions Est. Value Strategic Buyout Venture/Growth Capital #% $MM%#$MM#$MM#$MM Digital Media/Commerce 103 43% 3,102.5 14% 33 1,941.7 0 0.0 70 1,160.8 Marketing Technology 50 21% 986.5 5% 24 544.7 2 190.0 24 251.9 Software & Information 41 17% 16,204.3 75% 12 13,374.5 5 2,578.7 24 251.1 Digital Advertising 25 10% 860.6 4% 11 612.0 0 0.0 14 248.6 Agency/Consulting 16 7% 277.1 1% 11 192.0 1 40.0 4 45.1 Marketing Services 6 2% 103.0 0% 4 75.0 0 0.0 2 28.0 Total 241 100% 21,534.05 100% 95 16,739.9 8 2,808.7 138 1,985.5 Marketing, Media, Technology, and Service Industries M&A and 24.0 Investment Volume - Last 13 Months 22.0 $21.5 20.0 $9.8 $10.3 18.0 HPQ/ $14.7 $8.5 AU 16.0 Skype/ $13.4 14.0 MSFT 12.0 $10.7 $9.6 $8.5 10.0 $7.6 8.0 $5.8 $6.0 $6.0 6.0 4.0 $3.1 $3.0 Value ($ in billions) ($ Value 2.0 6564 89 149 182199 207 246 241 254 248 245 241 - Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 M&A & INVESTMENT SUMMARY AUGUST 2011 3 SELECTED TRANSACTIONS WITH VALUATION INFORMATION DISCLOSED AND IPOS AFTER FINAL PRICING ($ in Millions) Selected Transactions With Multiples Information Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Media/Commerce Network Solutions, Inc.(1 ) Domain Portfolio/Marketplace Web.com Group, Inc. $756.0 $270.0 70.2 2.8x 10.8x OPENLANE, Inc. eCommerce KAR Auction Services, Inc. 210.0 100.0 - 2.1x NA Bost on Proper(2 ) eCommerce Chico's 205.0 110.0 - 1.9x NA Multifamily Technology Solutions, Inc. Local Search RealPage, Inc. 74.4 16.1 (2.3) 4.6x NM Digital Advertising Tudou Holdings Limited(3 ) Digital Video Sina Corporation 729.7 52.7 (45.0) 13.8x NM Software & Information Autonomy Corporation PLC ERP Software Hewlett-Packard Company 10,300.0 565.9 249.4 18.2x 41.3x Sungard Higher Education(4 ) ERP Software Datatel, Inc. 1,800.0 5,030.0 - 0.4x NA MYOB Limited(5 ) Financial Software Bain Capital 1,300.0 - 115.0 NA 11.3x Vangent Healthcare Providers Software General Dynamics Corporation 1,299.1 713.0 87.1 1.8x 14.9x Bureau of National Affairs Legal Bloomberg L.P. 990.0 330.0 66.4 3.0x 14.9x Renaissance Learning, Inc. ERP Software Permira Funds 434.0 135.6 39.5 3.2x 11.0x Medical Education Technologies(6 ) Healthcare Providers Software CAE Healthcare 130.0 60.0 - 2.2x NA IPOs After Final Pricing Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Tudou Holdings Limited* Digital Video IPO $729.7 $52.7 ($45.0) 13.8x NM (1) Annualized revenue and EBITDA (calculated from midpoint of EBITDA margin) per Web.com's PREM14A SEC filing, 8/23/11 (2) Revenue for period ending 1/31/11 per Chico's Q2 2011 Earnings Call, 8/17/11 (3) Sina Corporation acquired 9% of Tudou Holdings Limited for $66.4 million (4) Annualized revenue per sungard.com (5) EBITDA per Reuters (6) Revenue approximation per meti.com *IPO Multiples based on Mar-2011 LTM financials per F-1/A filing, 4/28/11 M&A & INVESTMENT SUMMARY AUGUST 2011 4 IPO PIPELINE ($ in Millions) Securities in Registration (as of 8/31/11) Aggregate LTM Company Name Segment Offering Value Rev Adj. EBITDA Zynga Digital Media/Commerce $1,000.0 732.0 198.7 Groupon Digital Media/Commerce 750.0 713.4 NM TIM W.E. SGPS Digital Advertising 181.3 246.6 20.2 Demandware Marketing Technology 100.0 32.4 2.2 Greenway Medical Software & Information 100.0 43.9 2.8 Jive* Marketing Technology 100.0 34.0 NM Eloqua Corporation* Marketing Technology 100.0 54.4 NM Newgistics Marketing Services 86.3 174.6 18.2 Bazaarvoice, Inc.* Marketing Technology 86.3 64.5 NM Cafepress Digital Media/Commerce 80.0 138.0 9.9 Loyalty Alliance Enterprise Corp. Marketing Services 75.5 6.0 4.2 Angie's List* Digital Media/Commerce 75.0 70.2 NM Reply.com Digital Advertising 60.0 38.3 8.1 WageWorks, Inc. Software & Information 52.0 126.7 18.3 Brightcove* Software & Information 50.0 43.7 NM Kayak.com Digital Media/Commerce 50.0 112.7 16.2 * Filed August 2011 IPO Performance Initial Offering Final Price Stock Price at Close Stock Price on Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Aug 31, 2011 Aug-11 TUDO Tudou Holdings Limited China $28.00-$30.00 $29.00 25.56, down 11.9% $26.10 Jul-11 Z Zillow, Inc. United States $12.00-$14.00 $20.00 35.77, up 79% 37.18 Jun-11 RATE Bankrate, Inc. United States 14.00-16.00 15.00 16.44, up 9.6% 16.65 Jun-11 AWAY HomeAway United States 25.00 - 27.00 27.00 40.21, up 49% 41.84 Jun-11 P Pandora United States 10.00 - 12.00 17.42 17.42, down 13% 13.20 Jun-11 TAOM Taomee Holdings Ltd. China 9.00 - 11.00 9.00 8.23, down 8% 8.45 May-11 LNKD LinkedIn Corp. United States 12.00 - 14.00 11.00 14.75, up 34% 84.12 May-11 FENG Phoenix New Media United States 12.00 - 14.00 14.00 18.01, up 29% 6.62 May-11 RENN RenRen Inc. United States 22.00 - 24.00 25.00 38.84, up 55% 7.34 May-11 ACTV The Active Network United States 16.00 - 18.00 15.00 15.9, up 6% 16.18 May-11 DATE Jiayuan.com International China 10.00 - 12.00 11.00 10.52, down 4% 12.91 May-11 NQ NetQin Mobile India 32.00 - 35.00 45.00 94.25, up 109% 6.14 May-11 YNDX Yandex China 9.50 - 11.50 11.50 9.30, down 19% 30.97 Apr-11 MKTG Responsys United Kingdom 8.50 - 10.00 12.00 15.40, up 28% 14.56 Mar-11 QIHU Qihoo 360 Technology United States 10.50 - 12.50 14.50 34.00, up 134% 23.80 Mar-11 SREV ServiceSource International China 7.50 - 9.00 10.00 12.18, up 22% 18.07 Mar-11 CSOD Cornerstone OnDemand China 9.00 - 11.00 13.00 19.07, up 47% 15.52 Feb-11 EPOC Epocrates, Inc. China 13.00 - 15.00 16.00 21.96, up 37% 10.63 Jan-11 VELT Velti Plc China 9.00 - 11.00 12.00 15.58, up 30% 9.46 Jan-11 NLSN Nielsen Holdings B.V. Netherlands 20.00 - 22.00 23.00 25.00, up 9% 29.66 Jan-11 DMD Demand Media, Inc. United States 14.00 - 16.00 17.00 22.65, up 33% 8.65 M&A & INVESTMENT SUMMARY AUGUST 2011 5 DIGITAL ADVERTISING Transactions by Segment and Buyer Type • Online Lead Gen was the most active subsegment with seven transactions. With $333 million, Ad Networks/Exchanges was the highest value subsegment • Select acquisitions › ValueClick’s $295 million acquisition of Dotomi, an internet advertising and media management services provider › DG FastChannel’s $66 million acquisition of EyeWonder, Limelight Network’s video and rich media advertising unit › Augme Technologies’ $45 million acquisition of HipCricket, a mobile marketing ad company • Select investments › The $66 million investment in Tudou Holdings, a Chinese online video company, from Sina Corporation › The $50 million growth capital investment in Zocdoc, which provides a platform for people to find and book appointment with doctors, dentists, and other health professionals, from Digital Sky Technologies DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Est. Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Online Lead Generation 7 28% 70.3 8% 2 9.5 0 0.0 5 60.8 Ad Networks/Exchanges 5 20% 332.8 39% 4 329.8 0 0.0 1 3.0 Digital Video 5 20% 282.8 33% 1 174.0 0 0.0 4 108.8 Mobile Marketing 3 12% 78.7 9% 2 63.7 0 0.0 1 15.0 Search Marketing 3 12% 65.0 8% 2 35.0 0 0.0 1 30.0 Email Services 1 4% 11.0 1% 0 0.0 0 0.0 1 11.0 Affiliate/CPA Network 1 4% 20.0 2% 0 0.0 0 0.0 1 20.0 Total 25 100% 860.6 100% 11 612.0 0 0.0 14 248.6 M&A & INVESTMENT SUMMARY AUGUST 2011 6 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION ($ in millions, except stock price data) Stock Price Chg % From Equity Ent.