Marketing, Media, Technology, and Service Industries M&A & November 2012 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 7 Additional Monthly M&A and Investment Activity Data 24 About Petsky Prunier 34 M&A & INVESTMENT SUMMARY NOVEMBER 2012 2 MARKETING, MEDIA, TECHNOLOGY, AND SERVICE INDUSTRIES Transaction Distribution • A to ta l of 264 deal s were announced in Novem ber 2012, of whic h 149 reported an aggregate transacti on value of $6.4 billion • Digital Media/Commerce was the most active segment with 94 transactions, of which 64 reported an aggregate transaction value of $2.6 billion • Software & Information was the highest value segment worth $2.7 billion • Strategic buyers announced 117 deals, with $5.3 billion in aggregate reported value among 22 deals • VC/Growth Capital investors announced 142 deals, with $1.2 billion in aggregate reported value among 127 deals • Buyout investors announced five deals across the Software & Information, Marketing Technology and Agency/Consulting segments NOVEMBER 2012 BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Media/Commerce 94 36% 2,559.2 40% 32 2,095.1 0 0.0 62 464.1 Marketing Technology 66 25% 514.5 8% 22 63.6 1 0.0 43 450.9 Software & Information 37 14% 2,713.2 42% 19 2,610.0 2 0.0 16 103.2 Agency/Consulting 25 9% 477.6 7% 21 473.8 2 0.0 2 3.8 Digital Advertising 24 9% 169.5 3% 9 32.7 0 0.0 15 136.8 Marketing Services 9 3% 11.7 0% 6 0.6 0 0.0 3 11.1 Out-of-Home & Specialty Media 9 3% 0.7 0% 8 0.0 0 0.0 1 0.7 Total 264 100% 6,446.3 100% 117 5,275.8 5 0.0 142 1,170.6 Marketing, Media, Technology, and Service Industries M&A and Investment Volume - Last 13 Months 20.0 $16.7 $14.8 15.0 $11.4 $9.6 10.0 $8.2 $8.8 $8.3 lue ($ in ($ lue illions) $5. 5 $6.4 $6.4 b $4.4 Va 5.0 $3.1 $3.3 281 261 247 249 277 309 262280 275 273 216 307 264 - Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 M&A & INVESTMENT SUMMARY NOVEMBER 2012 3 SELECTED TRANSACTIONS WITH VALUATION INFORMATION DISCLOSED AND IPOS AFTER FINAL PRICING ($ in Millions) Selected Transactions With Multiples Information Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Media/Commerce Kayak Software Corporation Vertical Search Priceline.com, Inc. $1,629.0 $282.8 $54.0 5.8x 30.2x Ziff Davis Media, Inc. Niche Content j2 Global Communications, Inc. 167.0 60.0 - 2.8x NA Marketing Technology SweetIM Technologies Content Management Perion Network Ltd. 41.0 29.7 9.0 1.4x 4.6x Socialbakers Social Technology Index Ventures 40.0 9.0 - 4.4x NA Software & Information JDA Software Group, Inc. ERP Software RedPrairie Corporation 1,900.0 657.8 168.1 2.9x 11.3x Retalix, Ltd. ERP Software NCR Corporation 605.1 266.9 24.0 2.3x 25.2x IPOs Afilii*fter Final Pricing* Target Subsegment Buyer/Investor Ent. Value Rev EBITDA EV/REV EV/EBITDA Digital Media/Commerce YY, Inc. Social Media/Apps IPO $435.0 $106.0 $14.0 4.1x 31.0x (1) Socialbakers sold a 15 percent stake to Index Ventures for $6 million * IPO multippppggles based on TTM financials and pro forma balance sheets per latest Registration Filing M&A & INVESTMENT SUMMARY NOVEMBER 2012 4 SECURITIES IN REGISTRATION ($ in Millions) Aggreg ate LTM Date Company Name Segment Offering Value Rev EBITDA Apr-12 BlackStratus, Inc. Software & Information 20.00 9.20 NM Mar-12 Exponential Interactive, Inc. Digital Advertising 75.00 169.10 22.0 Mar-12 Professional Diversity Network Digital Media/Commerce 17.50 5.73 2.9 Mar-12 Reval Holdings Software & Information 75.00 47.00 NM M&A & INVESTMENT SUMMARY NOVEMBER 2012 5 LTM IPO PERFORMANCE ($ in Millions) Initial Offering Final Price Stock Price at Close Stock Price on % Change from Date Ticker Company Name Country Price Range Per Share on 1st Trading Day Dec 2, 2012 1st Trading Day Nov-12 YY YY, Inc. China $10.50-$12.50 $10.50 $11.31, up 8% $14.17 25.3% Oct-12 FLTX Fleetmatics Group Limited United States 15.00-17.00 27.00 22.30, up 31% 21.78 (2.3%) Oct-12 RLGY Realogy Holdings Corp. United States 23.00-27.00 27.00 34.20, up 27% 37.71 10.3% Oct-12 SSTK Shutterstock, Inc. United States 13.00-15.00 17.00 21.66, up 27% 25.60 18.2% Oct-12 WDAY Workday, Inc. United States 24.00-26.00 28.00 48.69, 74% 50.10 2.3% Sep-12 TRLA Trulia, Inc. United States 14.00-16.00 17.00 24.00, up 41.8% 17.78 (25.9%) Aug-12 ELOQ Eloqua, Inc. United States 10.00-11.50 11.50 12.89, up 12% 18.05 40.0% Aug-12 PFMT Performant Financial Corporation United States 12.00-14.00 9.00 10.60, down 18% 9.66 (8.9%) Jul-12 EOPN E2open, Inc. United States 15.00-17.00 15.00 13.50, down 10% 14.11 4.5% Jul-12 KYAK Kayak Software United States 22.00-25.00 26.00 33.18, up 28% 40.70 22.7% Jul-12 PANW Palo Alto Networks United States 38.00-40.00 42.00 53.13, up 27% 54.42 2.4% Jun-12 NOW ServiceNow United States 15.00-17.00 18.00 24.77, up 38% 32.63 31.7% May-12 ADNC Audience, Inc. United States 14.00-16.00 17.00 19.10, up 12.4% 8.65 (54.7%) May-12 FB Facebook United States 36.00-38.00 38.00 38.23, flat 28.00 (26.8%) May-12 WAGE WageWorks, Inc. United States 10.00-12.00 9.00 12.60, up 40% 18.47 46.6% Apr-12 AQ Acquity Group Hong Kong 6.00-8.00 6.00 5.77, down 4% 6.27 8.7% Apr-12 BLOX Infloblox United States 12.00-14.00 16.00 21.30, up 33% 18.96 (11.0%) Apr-12 PFPT Proofpp,oint, Inc. United States 10.00-12.00 13.00 14.10,,p up 8% 11.00 (()22.0%) Apr-12 SPLK Splunk, Inc. United States 11.00-13.00 17.00 35.48, up 109% 30.20 (14.9%) Mar-12 MACK CafePress, Inc. United States 16.00-18.00 19.00 19.03, up 0.2% 7.14 (62.5%) Mar-12 DWRE Demandware, Inc. United States 12.50-14.50 16.00 24.33, up 52% 27.39 12.6% Mar-12 ET ExactTarget, Inc. United States 15.00-17.00 19.00 25.11, up 32% 20.61 (17.9%) Mar-12 MM Millennial Media, Inc. United States 11.00-13.00 13.00 25.00, up 92% 13.75 (45.0%) Mar-12 VIPS VIPshop China 8.50-10.50 6.50 5.50, down 15% 13.74 149.8% Mar-12 VCRA Vocera Communications United States 12.00-14.00 16.00 22.40, up 40% 24.59 9.8% Mar-12 YELP Yelp!, Inc. United States 12.00-14.00 15.00 24.58, up 64% 18.91 (23.1%) Feb-12 AVG AVG Technologies Netherlands 16.00-18.00 16.00 13.09, down 16% 13.77 5.2% Feb-12 BV BazaarVoice, Inc. United States 8.00-12.00 12.00 16.51, up 31% 9.78 (40.8%) Feb-12 BCOV Brightcove, Inc. United States 10.00-12.00 11.00 15.15, up 36% 9.72 (35.8%) Dec-11 JIVE Jive Software United States 8008.00-10 . 00 12. 00 15.05 , up 25% 14. 46 (3. 9%) Dec-11 3659 Nexon Japan 15.40-17.96 16.68 16.30. down 2% 11.20 (31.3%) Dec-11 ZNGA Zynga United States 8.50-10.00 10.00 9.50, down 5% 2.46 (74.1%) M&A & INVESTMENT SUMMARY NOVEMBER 2012 6 DIGITAL ADVERTISING Transactions by Subsegment and Buyer Type • The were 24 transactions announced in the Digital Advertising segment worth approximately $170 million, up 50 percent and 42 percent, respectively, from October 2012 • Select acquisitions › BazaarVoice’s $33 million acquisition of Longboard Media, which operates a vertical ad network for shopping publishers and advertisers › Aegis Media’s acquisition of iQiyi.com, a China-based television and movie portal focusing on professionally produced content › Baidu’s acquisition of IQ Mobile, an Australia-based mobile marketing and advertising firm whose services include location-based advertising and campaign management • Select investments › The $25 million investment in Flurry, a provider of mobile advertising, analytics and monetization solutions to mobile application developers, led by Crosslink Capital › The $25 million investment in Kaltura, which designs and develops online video solutions, from Mitsui Global Investment and Orix Ventures DIGITAL ADVERTISING TRANSACTIONS BY SEGMENT BUYER/INVESTOR BREAKDOWN Transactions Reported Value Strategic Buyout Venture/Growth Capital # % $MM % # $MM # $MM # $MM Digital Video 6 25% 53.0 31% 2 0.0 0 0.0 4 53.0 Mobile Marketing 5 21% 50.0 30% 2 0.0 0 0.0 3 50.0 Ad Networks/Exchanges 3 13% 32.7 19% 3 32.7 0 0.0 0 0.0 Game Advertising 3 13% 9.5 6% 0 0.0 0 0.0 3 9.5 Search Marketing 3 13% 12.0 7% 2 0.0 0 0.0 1 12.0 Affiliate/CPA Network 2 8% 3.8 2% 0 0.0 0 0.0 2 3.8 Online Lead Generation 2 8% 8.5 5% 0 0.0 0 0.0 2 8.5 Total 24 100% 169.5 100% 9 32.7 0 0.0 15 136.8 M&A & INVESTMENT SUMMARY NOVEMBER 2012 7 DIGITAL ADVERTISING PUBLIC COMPANY VALUATION ($ in millions, except stock price data) Stock Price Chg % From Equity Ent.