CS 2019 Q3 Tech Update by Cassel Salpeter

Technology Investment Banking Q3 2019 Update

ABOUT OUR FIRM

Technology Investment Banking

Cassel Salpeter & Co. is a boutique investment banking firm focused on providing independent and objective advice to middle market and emerging growth companies. Finding the right financial partner in the fragmented technology market requires solid industry positioning and broad industry relationships. We can help. Our experience and services include: Mergers & Acquisitions ¡ Financial advisory ¡ Sales to strategic and private equity buyers ¡ Divestitures to strategic and private equity buyers ¡ Buy-side acquisition programs ¡ Leveraged & management buyouts ¡ Going private transactions

Capital Raising ¡ Financial advisory ¡ Equity and debt private placements ¡ Growth capital ¡ PIPEs ¡ Recapitalizations

James Cassel Chairman jcassel@cs-ib.com 305-438-7701

Other Services ¡ ¡ ¡ ¡

Fairness opinions Solvency opinions Valuations Restructuring, refinancing, and distressed M&A transactions ¡ Debtor and creditor representations ¡ 363 sales & plans of reorganization

Scott Salpeter President ssalpeter@cs-ib.com 305-438-7702

www.casselsalpeter.com

Technology Investment Banking

Q3 TECHNOLOGY DEALS

M&A TRANSACTIONS

III

PUBLIC MARKETS REVIEW

Q3 2019 SELECTED MERGERS AND ACQUISITIONS

Technology Investment Banking

Selected Transactions Review ($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Target TTM

Implied EV /

Revenue

EBITDA %

789.9

3,500.0

153.2

37.7

14.5%

4.06x

28.04x

14.3%

10.7%

VMware, Inc.

2,063.8

229.7

-28.6%

8.98x

14.3%

42.1%

VMware, Inc.

2,972.4

716.1

-17.7%

4.15x

9.7%

51.5%

Presidio, Inc.

BC Partners

2,375.4

3,026.1

7.3%

0.78x

10.79x

26.0%

20.9%

22-Aug-19

iPipeline

Roper Technologies, Inc.

1,625.0

7-Aug-19

20-Sep-19

Esterline Interface Technologies, Ltd.

KPS Capital Partners, LP

190.0

1.00x

26-Jul-19

Monotype Imaging Holdings Inc.

HGGC, LLC

858.3

244.0

22.4%

3.52x

15.74x

22.8%

18.3%

25-Jul-19

Stratos Management Systems, Inc.

Pensare Acquisition Corp.

11-Jul-19

16-Jul-19

Jungla Inc.

Invitae Corporation

67.1

2-Jul-19

D3 Technology Inc.

NCR Corporation

80.0

Crossix Solutions Inc.

Veeva Systems Inc.

11-Sep-19

Livermore Software Technology Corp.

ANSYS, Inc.

5-Sep-19

Assurance IQ, Inc.

Prudential Financial, Inc.

3-Sep-19

MAM Software Group, Inc.

Kerridge Commercial Systems, Ltd.

22-Aug-19

7-Oct-19

Carbon Black, Inc.

22-Aug-19

Pivotal Software, Inc.

14-Aug-19

8-Aug-19

Revenue

Stock Price Premiums

430.0

26-Sep-19

Value

Valuation Benchmarks EBITDA

1-Day

1-Month

Sources of information: S&P Capital IQ.

Technology Investment Banking

Q3 TECHNOLOGY DEALS

M&A TRANSACTIONS

III

PUBLIC MARKETS REVIEW

SOFTWARE

Technology Investment Banking Selected Transactions Review

($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Value

Valuation Benchmarks

Target TTM

Implied EV /

Revenue

EBITDA %

Revenue

Stock Price Premiums

EBITDA

1-Day

1-Month

Application Software 11-Sep-19

Livermore Software Technology Corp.

ANSYS, Inc.

789.9

5-Sep-19

Assurance IQ, Inc.

Prudential Financial, Inc.

3,500.0

na na

22-Aug-19

Pivotal Software, Inc.

VMware, Inc.

2,972.4

716.1

-17.7%

4.15x

9.7%

51.5%

26-Jul-19

Monotype Imaging Holdings Inc.

HGGC, LLC

10-Jun-19

31-Jul-19

Tableau Software, Inc.

salesforce.com, inc.

6-Jun-19

Looker Data Sciences, Inc.

Google LLC

13-May-19

1-Jul-19

Amber Road, Inc.

9-May-19

1-Aug-19

23-Jan-19

8-Jan-19

858.3

244.0

22.4%

3.52x

15.74x

22.8%

18.3%

16,337.3

1,231.4

-8.5%

13.27x

42.1%

43.5%

2,600.0

E2open, LLC

424.0

86.2

-7.6%

4.92x

26.7%

45.5%

Control4 Corporation

Wirepath Home Systems, LLC

625.0

273.7

10.1%

2.28x

22.54x

39.7%

41.7%

Trendkite, Inc.

Cision Ltd.

224.4

372.4

0.60x

7-Jan-19

Dynasty Marketplace, Inc.

AppFolio, Inc.

60.2

2-Jan-19

YourCause, LLC

Blackbaud, Inc.

157.7

11-Nov-18

10-Jan-19

Apptio, Inc.

Vista Equity Partners LLC

1,867.2

224.7

-6.2%

8.31x

52.9%

24.9%

11-Nov-18

23-Jan-19

Qualtrics International Inc.

SAP America, Inc.

8,000.0

372.4

3.1%

21.48x

15-Oct-18

1-Feb-19

SendGrid, Inc.

Twilio Inc.

1,831.6

137.2

4.8%

12.50x

17.3%

0.5%

20-Sep-18

31-Oct-18

Marketo, Inc.

Adobe Inc.

4,750.0

11-Jun-18

1-Aug-18

Adaptive Insights, Inc.

Workday, Inc.

1,500.0

114.3

-32.6%

26-Apr-18

20-Aug-18

Mattersight Corporation

Nice Systems, Inc.

111.2

50.4

-8.2%

2.21x

25.6%

28.6%

24-Apr-18

31-May-18

PeopleFluent, Inc.

Learning Technologies Group plc

30-Jan-18

5-Apr-18

Callidus Software Inc.

SAP America, Inc.

25-Jul-17

3-Aug-17

Intacct Corporation

30-May-17

31-Jul-17

Xactly Corporation

26-May-17

25-May-17

iSystems, LLC

Asure Software, Inc.

1-May-17

9-Jun-17

Jive Software, Inc.

Wave Systems Corp.

28-Apr-17

12-Sep-17

Guavus, Inc.

Thales S.A.

215.0

31-Jan-17

27-Jan-17

IDV Solutions, LLC

Everbridge, Inc.

27.3

14-Nov-16

30-Mar-17

Mentor Graphics Corporation

Siemens Industry, Inc.

9-Nov-16

19-Dec-16

TubeMogul, Inc.

Adobe Inc.

31-Aug-16

1-Dec-16

Interactive Intelligence Group, Inc.

Genesys Telecommunications

28-Jul-16

4-Nov-16

NetSuite Inc.

Oracle Corporation

2-Jun-16

22-Aug-16

Qlik Technologies, Inc.

Thoma Bravo, LLC

150.0

106.6

12.6%

1.41x

11.19x

2,425.9

253.1

-2.2%

9.59x

10.1%

25.7%

The Sage Group plc

850.0

88.0

9.66x

Vista Equity Partners

530.6

96.8

-12.6%

5.48x

16.8%

34.9%

76.7

12.9

6.2%

5.96x

343.5

203.5

2.4%

1.69x

4.0%

22.1%

30.0

7.17x

10.2

7.4%

2.67x

36.11x

4,389.9

1,282.5

20.7%

3.42x

16.54x

21.4%

35.4%

544.6

212.0

-9.8%

2.57x

82.1%

56.3%

1,399.0

426.2

-0.3%

3.28x

6.8%

17.1%

8,708.6

897.5

-5.4%

9.70x

19.0%

57.9%

2,616.8

665.3

2.0%

3.93x

5.3%

-1.6%

Mean

$ 2,296.2

337.8

-0.9%

6.08x

20.43x

25.1%

31.4%

Median

218.4

-0.3%

4.15x

16.54x

20.2%

31.7%

854.1

Sources of information: S&P Capital IQ.

SOFTWARE (CONTINUED)

Technology Investment Banking Selected Transactions Review

($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Value

Valuation Benchmarks

Target TTM Revenue

Implied EV /

EBITDA %

Revenue

Stock Price Premiums

EBITDA

1-Day

1-Month

Vertical Software 3-Sep-19

MAM Software Group, Inc.

Kerridge Commercial Systems, Ltd.

8-Aug-19

22-Aug-19

iPipeline

Roper Technologies, Inc.

37.7

14.5%

4.06x

28.04x

14.3%

10.7%

1,625.0

153.2

2-Jul-19

D3 Technology Inc.

NCR Corporation

24-Jun-19

Rudolph Technologies, Inc.

Nanometrics Incorporated

3-Jun-19

31-May-19

Pace Payment Systems, Inc.

i3-SDCR, Inc.

28-May-19

17-Sep-19

Total System Services, Inc.

Global Payments Inc.

15-Apr-19

12-Apr-19

Synovia Solutions, LLC

CalAmp Corp.

49.8

12-Feb-19

17-Apr-19

Ellie Mae, Inc.

Thoma Bravo

3,380.7

6-Sep-18

16-Nov-18

IntraLinks Holdings, Inc.

SS&C Technologies Holdings, Inc.

1,428.4

10-Aug-18

4-Oct-18

TravelClick, Inc.

Amadeus Americas, Inc.

1,520.0

31-Jul-18

1-Oct-18

Eze Software Group LLC

SS&C Technologies Holdings, Inc.

6-Mar-18

21-May-18

CommerceHub, Inc.

GTCR, Sycamore Partners

80.0

696.8

245.6

16.2%

2.84x

17.50x

8.5%

18.0%

134.5

29.1

2.9%

4.63x

159.59x

27,929.0

4,103.5

29.6%

6.81x

23.01x

9.6%

23.5%

28.0

1.78x

480.3

11.8%

7.04x

59.58x

20.8%

46.3%

325.0

40.6%

4.39x

10.82x

373.0

23.1%

4.08x

17.67x

1,450.0

280.0

37.5%

5.18x

13.81x

1,044.7

112.8

30.5%

9.26x

30.35x

30.2%

21.8%

Mean

$ 3,291.0

601.5

23.0%

5.01x

40.04x

16.7%

24.1%

Median

$ 1,236.5

262.8

23.1%

4.51x

23.01x

14.3%

21.8%

430.0

67.1

5,818.3

684.6

11.4%

8.50x

74.54x

-2.6%

4.3%

Healthcare Software 26-Sep-19

Crossix Solutions Inc.

Veeva Systems Inc.

11-Jul-19

16-Jul-19

Jungla Inc.

Invitae Corporation

12-Jun-19

Medidata Solutions, Inc.

Dassault Systemes Americas Corp.

17-May-19

24-Jul-19

InstaMed Communications, LLC

JPMorgan Chase Bank, National Ass.

13-Feb-19

1-Apr-19

Auris Health, Inc.

Ethicon US, LLC

11-Mar-19

1-Apr-19

Voalte, Inc.

5-Mar-19

7-Mar-18

500.0

62.5

8.00x

5,750.0

Hill-Rom, Inc.

195.0

40.0

4.88x

Prescribe Wellness, LLC

Tabula Rasa HealthCare, Inc.

150.0

29.0

1.0%

5.17x

2-Apr-18

ABILITY Network Inc.

Inovalon Holdings, Inc.

1,200.0

140.0

51.5%

8.57x

16.64x

26-Feb-18

8-May-18

Intermedix Corporation

R1 RCM Inc.

460.0

193.0

24.9%

2.38x

9.58x

9-Aug-16

21-Oct-16

Press Ganey Holdings, Inc.

EQT Partners AB

2,392.6

344.3

30.5%

6.95x

22.80x

0.4%

1.1%

13-Jul-16

16-Sep-16

Imprivata, Inc.

Thoma Bravo

496.9

131.1

-14.1%

3.79x

32.8%

37.5%

30-Jun-16

1-Jul-16

HealthiestYou, Inc.

Teladoc, Inc. (nka:Teladoc Health, Inc.)

155.8

10.0

15.58x

22-Feb-16

4-Apr-16

Brightree LLC

ResMed Corp.

800.0

113.2

37.3%

7.07x

18.93x

18-Feb-16

7-Apr-16

Truven Holding Corp.

IBM Watson Health

3,578.6

610.7

16.7%

5.86x

34.99x

Mean

$ 1,571.0

214.4

19.9%

6.98x

29.58x

10.2%

14.3%

Median

131.1

20.8%

6.95x

20.87x

0.4%

4.3%

498.5

Sources of information: S&P Capital IQ.

SOFTWARE (CONTINUED)

Technology Investment Banking Selected Transactions Review

($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Value

Valuation Benchmarks

Target TTM Revenue

Implied EV /

EBITDA %

Revenue

Stock Price Premiums

EBITDA

1-Day

1-Month

Infrastructure Software 26-Jun-19

9-Aug-19

Aerohive Networks, Inc.

Extreme Networks, Inc.

149.7

-11.5%

1.45x

39.5%

30.9%

1-Feb-19

28-Feb-19

MicroPact Inc.

Tyler Technologies, Inc.

217.0 204.2

70.0

2.92x

4-Mar-19

1-Apr-19

Mist Systems, Inc.

International Business Machines

404.2

28-Oct-18

9-Jul-19

Red Hat, Inc.

International Business Machines

33,125.3

3,482.7

19.9%

9.51x

47.68x

62.8%

39.4%

3-Oct-18

3-Jan-19

Hortonworks, Inc.

Cloudera, Inc.

2,005.4

327.6

-46.3%

6.12x

2.6%

-1.2%

11-Jul-18

5-Nov-18

CA, Inc.

Broadcom Inc.

18,588.0

4,148.0

30.2%

4.64x

16.38x

19.8%

22.3%

4-Jun-18

25-Oct-18

GitHub, Inc.

Microsoft Corporation

7,500.0

300.0

25.00x

12-Apr-18

17-Jul-18

Actian Corporation

HCL Tech; Sumeru Equity

330.0

107.1

35.9%

3.08x

8.57x

20-Mar-18

1-May-18

MuleSoft, Inc.

salesforce.com, inc.

6,569.5

296.5

-25.6%

22.16x

35.9%

45.7%

17-Oct-17

14-Nov-17

IntraLinks Holdings, Inc.

Siris Capital Group, LLC

1,020.8

295.5

7.5%

3.45x

46.06x

5-Jun-17

26-Jul-17

Covisint Corporation

Open Text Corporation

69.2

70.2

-14.0%

0.99x

22.5%

28.9%

31-Jan-17

Double-Take Software, Inc.

Carbonite, Inc.

24-Jan-17

AppDynamics LLC

Cisco Systems, Inc.

9-Jan-17

3-Feb-17

Trello, Inc.

6-Dec-16

19-Jan-17

12-Sep-16 8-Sep-16

67.3

84.0

16.5%

1.65x

43.39x

3,902.9

206.2

-51.1%

18.93x

Atlassian, Inc.

425.0

IntraLinks Holdings, Inc.

Synchronoss Technologies, Inc.

831.5

290.4

6.9%

2.81x

37.52x

15.4%

33.5%

23-Jan-17

EMC Enterprise Content Division

Open Text Corporation

1,620.0

599.0

2.70x

10-Nov-16

Apigee Corporation

Google Inc. (nka:Google LLC)

561.8

92.0

-42.9%

6.10x

6.5%

20.3%

7-Sep-16

1-Sep-17

HPE, Software

Micro Focus International plc

9,049.3

3,172.0

20.7%

2.85x

11.40x

26-Jul-16

31-Jan-17

Citrix GoTo Family Of Products

LogMeIn, Inc.

2,896.8

600.0

4.83x

15-Jan-16

5-Jan-16

Jungle Disk, LLC

Porthcawl Holdings, LLC

27.0

12.0

2.25x

21-Oct-15

5-Feb-16

SolarWinds Corporation

Silver Lake; Thoma Bravo, LLC

4,446.3

485.9

30.9%

9.15x

29.64x

19.7%

44.1%

9-Oct-15

15-Oct-15

Marvasol, Inc.

LogMeIn, Inc.

115.7

11.2

-23.7%

10.30x

10-Sep-15

8-Dec-15

Premiere Global Services, Inc.

Siris Capital Group

975.1

566.8

13.0%

1.72x

13.23x

25.9%

27.5%

11-Aug-15

29-Jan-16

Veritas Technologies LLC

The Carlyle Group; GIC Pte. Ltd.

7,000.0

2,600.0

2.69x

27-May-15

8-Jul-15

Rally Software Development Corp.

CA, Inc.

471.2

92.5

-30.6%

5.09x

42.9%

27.5%

4-May-15

3-Aug-15

Cyan, Inc.

Ciena Corporation

521.5

117.5

-35.8%

4.44x

44.4%

24.0%

Mean

$ 3,959.4

757.4

-5.5%

6.45x

28.21x

28.2%

28.6%

Median

293.0

-2.3%

3.95x

29.64x

24.2%

28.2%

903.3

Sources of information: S&P Capital IQ.

SECURITY

Technology Investment Banking Selected Transactions Review

($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Value

Valuation Benchmarks

Target TTM Revenue

Implied EV /

EBITDA %

Revenue

Stock Price Premiums

EBITDA

1-Day

1-Month

Security 22-Aug-19

7-Oct-19

Carbon Black, Inc.

VMware, Inc.

$ 2,063.8

229.7

-28.6%

8.98x

14.3%

42.1%

5-Jun-19

8-Oct-19

Endgame, Inc.

Elastic N.V.

227.8

19.0

11.99x

7-Feb-19

26-Mar-19

Webroot Inc.

Carbonite, Inc.

618.5

215.0

2.88x

15-Jan-19

20-Feb-19

AppRiver, LLC

Zix Corporation

268.5

16-Nov-18

21-Feb-19

Cylance Inc.

BlackBerry Limited

1,500.0

130.0

11.54x

5-Nov-18

31-Dec-18

Veracode, Inc.

Thoma Bravo, LLC

950.0

10-Oct-18

10-Jan-19

Imperva, Inc.

Thoma Bravo, LLC

1,814.7

351.8

1.4%

5.16x

29.5%

21.5%

3-Jan-18

31-Jan-18

Spikes Inc.

KPMG LLP

27-Nov-17

12-Feb-18

Barracuda Networks, Inc.

Thoma Bravo

7-Nov-17

21-Nov-17

Cloudmark Inc.

6-Mar-17

3-Apr-17

Veracode, Inc.

8-Feb-17

22-Mar-17

20-Nov-16

34.2

27.1

1.27x

1,433.9

372.5

8.6%

3.85x

16.3%

17.6%

Proofpoint, Inc.

110.0

CA, Inc.

614.0

Invincea, Inc.

Sophos Group plc

120.0

9.8

12.24x

9-Feb-17

LifeLock, Inc.

Symantec Corporation

2,362.1

650.2

7.3%

3.63x

15.7%

38.7%

19-Sep-16

4-Nov-16

Infoblox Inc.

Vista Equity Partners

1,250.0

358.3

0.5%

3.49x

16.1%

31.6%

13-Jul-16

16-Sep-16

Imprivata, Inc.

Thoma Bravo

496.9

131.1

-14.1%

3.79x

32.8%

37.5%

12-Jun-16

1-Aug-16

Blue Coat, Inc.

Symantec Corporation

4,726.7

598.3

1.5%

7.24x

1-Jun-16

30-Jun-16

Ping Identity Corporation

Vista Equity Partners

600.0

18-Apr-16

15-Aug-16

CSIdentity Corporation

Experian Information Solutions, Inc.

360.0

103.0

20.4%

3.50x

17.14x

20-Jan-16

14-Jan-16

iSight Security, Inc.

FireEye, Inc.

271.1

40.0

6.78x

11-Dec-15

Cyveillance, Inc.

LookingGlass Cyber Solutions Inc.

35.0

18.0

1.94x

9-Nov-15

closed

Elastica, Inc.

Blue Coat Systems Inc.

280.0

27-Oct-15

21-Dec-15

Lancope, Inc.

Cisco Systems, Inc.

452.5

21-Oct-15

9-Mar-16

TippingPoint Technologies, Inc.

Trend Micro Incorporated

300.0

169.0

1.78x

19-Oct-15

17-Mar-16

Vormetric, Inc.

Thales e-Security, Inc.

421.0

53.5

7.87x

8-Sep-15

Adallom, Inc.

Microsoft Corporation

320.0

7-Apr-15

1-Sep-15

TrustWave Holdings, Inc.

Singapore Telecommunications

785.7

216.0

3.64x

10-Mar-15

26-May-15

Blue Coat Systems Inc.

Bain Capital Private Equity, LP

2,400.0

9-Jul-15

Caspida, Inc.

Splunk Inc.

190.0

2-Mar-15

6-Mar-15

Emerging Threats Pro, Inc.

Proofpoint, Inc.

32.3

9-Dec-14

2-Jan-15

Tripwire, Inc.

Belden Inc.

710.0

118.5

5.99x

Mean

858.3

200.6

-0.4%

5.66x

17.14x

20.8%

31.5%

Median

474.7

131.1

1.4%

3.85x

17.14x

16.2%

34.6%

Sources of information: S&P Capital IQ.

ENTERPRISE SYSTEMS

Technology Investment Banking Selected Transactions Review

($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Value

Valuation Benchmarks

Target TTM Revenue

Implied EV /

EBITDA %

Revenue

Stock Price Premiums

EBITDA

1-Day

1-Month

Enterprise Systems 7-Aug-19

20-Sep-19

Esterline Interface Technologies Ltd.

KPS Capital Partners, LP

24-Jun-19

30-Aug-19

PCM, Inc.

Insight Enterprises, Inc.

17-May-19

25-Sep-19

Cray Inc.

Hewlett Packard Enterprise Company

28-Mar-19

15-Apr-19

Ipswitch, Inc.

Progress Software Corporation

27-Mar-19

19-Jun-19

Quantenna Communications, Inc.

ON Semiconductor Corporation

18-Mar-19

31-Jul-19

Worldpay, Inc.

Fidelity National Information Services

11-Mar-19

Mellanox Technologies, Ltd.

NVIDIA Corporation

28-Feb-19

9-May-19

SpeedPay, Inc.

ACI Worldwide, Inc.

4-Feb-19

3-May-19

The Ultimate Software Group, Inc.

16-Jan-19

29-Jul-19

28-Mar-18

2-Jul-18

26-Oct-17

190.0

1.00x

621.8

2,157.0

2.6%

0.29x

11.03x

43.6%

32.5%

1,394.3

396.4

-21.7%

3.52x

17.4%

26.9%

225.3

75.0

3.00x

955.5

233.0

5.5%

4.10x

74.15x

19.3%

29.6%

49,565.0

4,044.7

39.9%

12.06x

29.11x

13.6%

27.0%

6,803.0

1,184.8

23.6%

5.74x

24.35x

14.3%

28.7%

750.0

350.0

25.7%

2.14x

8.33x

Hellman & Friedman & Others

10,963.9

1,198.8

9.8%

9.15x

93.74x

19.3%

32.2%

First Data Corporation

Fiserv, Inc.

48,634.5

8,764.0

38.7%

5.55x

14.35x

29.6%

38.5%

Polycom, Inc.

Plantronics, Inc.

2,122.4

1,142.8

8.3%

1.86x

21.00x

27-Dec-17

Gigamon Inc.

Elliott, Qatar Investment Authority

1,329.1

302.9

1.4%

4.39x

6.2%

-7.3%

18-Sep-17

5-Jan-18

Silver Spring Networks, Inc.

Itron, Inc.

7-Mar-17

13-Apr-17

Nimble Storage, Inc.

Hewlett Packard Enterprise Company

13-Oct-16

VXi Corporation

GN Audio A/S

19-Sep-16

4-Nov-16

Infoblox Inc.

Vista Equity Partners

11-Aug-16

1-Nov-16

Silicon Graphics International Corp.

Hewlett Packard Enterprise Company

268.4

13-May-16

27-Sep-16

Polycom, Inc.

Siris Capital Group, LLC

1,231.7

19-Apr-16

29-Nov-16

Lexmark International, Inc.

Legend Capital; PAG Asia; Apex Tech.

3,645.2

7-Apr-16

3-Jun-16

Alliance Fiber Optic Products Inc.

Corning Incorporated

4-Apr-16

27-May-16

Ruckus Wireless, Inc.

Brocade Communications

4-Feb-16

29-Jan-16

Pakedge Device & Software, Inc.

Control4 Corporation

21-Dec-15

2-Feb-16

SolidFire

2-Nov-15

5-Oct-16

21-Oct-15 12-Oct-15

830.4

425.7

-8.2%

1.95x

25.0%

28.2%

1,065.1

402.6

-33.3%

2.65x

45.3%

45.9%

35.0

32.0

12.5%

1.09x

8.75x

1,250.0

358.3

0.5%

3.49x

16.1%

31.6%

532.9

1.0%

0.50x

48.58x

40.9%

47.3%

1,197.8

11.2%

1.03x

9.19x

11.0%

5.8%

3,481.5

9.1%

1.05x

11.46x

18.0%

29.6%

265.9

72.0

22.3%

3.69x

16.58x

24.0%

45.1%

1,114.4

391.9

4.5%

2.84x

63.51x

44.3%

47.4%

31.8

18.6

3.9%

1.71x

43.95x

NetApp, Inc.

870.0

Hutchinson Technology Inc.

TDK Headway Technologies, Inc.

233.4

234.6

8.1%

0.99x

12.28x

128.6%

135.3%

12-May-16

SanDisk LLC

Western Digital Technologies, Inc.

13,510.4

5,598.4

24.4%

2.41x

9.90x

13.5%

61.4%

7-Sep-16

EMC Corporation (nka:Dell EMC)

Dell, Inc.

63,296.5

24,586.0

20.4%

2.57x

12.61x

19.0%

34.8%

2-Sep-15

1-Oct-15

iBiquity Digital Corporation

DTS, Inc.

612.4

48.3

17.3%

12.68x

73.08x

18-Aug-15

6-Oct-15

Dot Hill Systems Corp.

Seagate Technology plc

645.4

243.9

7.7%

2.65x

34.31x

79.2%

51.9%

27-May-15

7-Jul-15

Meru Networks, Inc.

Fortinet, Inc.

34.6

87.7

-16.9%

0.39x

18.1%

31.5%

22-Apr-15

4-Jun-15

Procera Networks, Inc.

Francisco Partners Management LLC

133.2

81.4

-6.4%

1.64x

21.7%

19.1%

16-Apr-15

17-Apr-15

Motion Computing, Inc.

Xplore Technologies

130.1

78.8

-5.7%

1.65x

Mean

$ 6,863.2

$ 1,930.4

7.4%

3.26x

31.01x

30.4%

37.4%

Median

7.9%

2.49x

18.79x

19.3%

31.9%

870.0

375.1

Sources of information: S&P Capital IQ.

INTERNET

Technology Investment Banking Selected Transactions Review

($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Value

Valuation Benchmarks

Target TTM Revenue

Implied EV /

EBITDA %

Revenue

Stock Price Premiums

EBITDA

1-Day

1-Month

Internet Content and Search 24-Jul-17

14-Sep-17

WebMD Health Corp.

KKR

3-Jul-17

8-Nov-17

Baton Holding, LLC

Red Ventures Holdco, LP

1-May-17

29-Sep-17

Angie's List, Inc.

10-Apr-17

22-May-17

21-Oct-16

709.0

26.0%

3.73x

14.31x

20.5%

12.3%

1,434.7

477.0

21.2%

3.01x

14.18x

8.9%

31.5%

HomeAdvisor, Inc.

580.3

302.3

1.2%

1.92x

161.23x

44.6%

49.1%

RetailMeNot, Inc.

Harland Clarke Holdings Corp.

463.9

295.4

10.4%

1.57x

15.12x

49.7%

38.1%

2-Dec-16

Everyday Health, Inc.

Ziff Davis, LLC

465.3

253.9

12.2%

1.83x

15.03x

11.7%

30.9%

9-Aug-16

28-Oct-16

Monster Worldwide, Inc.

Randstad North America, Inc.

371.1

635.0

11.9%

0.61x

6.80x

22.7%

30.3%

27-Jun-16

8-Aug-16

ReachLocal, Inc.

Gannett Co., Inc.

155.6

361.7

-2.5%

0.45x

187.5%

184.0%

13-Jun-16

8-Dec-16

LinkedIn Corporation

Microsoft Corporation

25,984.4

3,615.0

13.2%

7.19x

54.43x

49.5%

54.3%

5-May-16

17-Jun-16

NextAdvisor, Inc.

Baton Holding, LLC

106.7

70.3

1.52x

7.25x

12-Apr-16

Cracked Entertainment, Inc.

Scripps Media, Inc.

39.0

10.9

3.58x

2-Nov-15

31-Dec-15

Vetstreet Inc.

Butler Schein Animal Health

48.0

43.0

1.12x

28-Oct-15

29-Jan-16

The Weather Company

International Business Machines

2,284.0

Internet Retail

$ 2,641.2

Mean

$ 2,881.2

615.8

11.7%

2.41x

36.04x

49.4%

53.8%

Median

302.3

12.1%

1.83x

14.67x

33.7%

34.8%

$ 2,801.4

$ 2,116.8

10.4%

1.32x

12.70x

4.2%

15.7%

1,829.3

228.9

-8.3%

7.99x

68.0%

42.6% 13.8%

464.6

10-Jun-19

25-Sep-19

Shutterfly, Inc.

24-Dec-18

15-Feb-19

MINDBODY, Inc.

Apollo Global Management, LLC (nka:Apollo Global Management, Inc.) Vista Equity Partners

25-Sep-18

21-Dec-18

XO Group Inc.

WeddingWire, Inc.

804.4

164.7

14.1%

4.88x

34.74x

26.6%

7-Apr-17

5-May-17

eBags, Inc.

Samsonite LLC

105.0

158.5

0.66x

7-Nov-16

17-Feb-17

Blue Nile, Inc.

Bain Capital Private Equity

456.2

471.9

3.5%

0.97x

27.82x

33.9%

15.1%

8-Aug-16

19-Sep-16

Jet.com, Inc.

Wal-Mart Stores, Inc.

3,300.0

4-Nov-15

14-Dec-15

HomeAway, Inc.

Expedia, Inc. (nka:Expedia Group, Inc.)

3,057.6

485.3

12.6%

6.30x

49.81x

24.3%

41.8%

7-Oct-15

31-Oct-15

Ticketfly, LLC

Pandora Media, LLC

321.9

65.9

-17.0%

4.88x

17-Aug-15

30-Sep-15

zulily, Inc.

QVC, Inc.

2,180.0

1,281.4

2.2%

1.70x

77.32x

49.2%

34.6%

29-May-15

17-Jul-15

Geeknet, Inc.

GameStop Corp.

102.7

137.1

-6.0%

0.75x

5.5%

125.5%

27-May-15

13-Jul-15

Orchard Brands Corporation

Bluestem Brands, Inc.

410.0

1,020.0

6.9%

0.40x

5.80x

12-Feb-15

17-Sep-15

Orbitz Worldwide, Inc.

Expedia, Inc. (nka:Expedia Group, Inc.)

1,595.1

933.5

11.5%

1.71x

14.81x

24.7%

30.7%

Mean

$ 1,413.6

642.2

3.0%

2.87x

31.86x

29.6%

40.0%

Median

$ 1,199.8

471.9

5.2%

1.70x

27.82x

25.7%

32.7%

Sources of information: S&P Capital IQ.

PROFESSIONAL SERVICES AND DISTRIBUTION

Technology Investment Banking

Selected Transactions Review ($ in millions)

Transaction

Metrics

Date Annc.

Enterprise Closed

Target

Acquirer

Valuation Benchmarks

Target TTM

Implied EV / Revenue

Stock Price Premiums

Value

Revenue

EBITDA %

EBITDA

1-Day

1-Month

$ 2,375.4

$ 3,026.1

7.3%

0.78x

10.79x

26.0%

20.9%

194.0

Consulting 14-Aug-19

Presidio, Inc.

BC Partners

25-Jul-19

Stratos Management Systems, Inc.

Pensare Acquisition Corp.

18-Jan-19

25-Feb-19

Fulcrum IT Services, LLC

Huntington Ingalls Industries, Inc.

22-Jul-18

9-Oct-18

Atos Syntel

Atos SE

3,541.6

966.2

27.4%

3.67x

13.40x

4.8%

28.1%

12-Feb-18

2-Apr-18

CSRA Inc.

General Dynamics Corporation

9,871.1

5,064.0

16.6%

1.95x

11.73x

33.8%

28.6%

3-Jul-17

15-Aug-17

NCI, Inc.

H.I.G. Capital

285.1

325.4

9.1%

0.88x

9.61x

-5.2%

2.6%

27-Jan-17

28-Apr-17

Harris Corpo, Gov (nka:Peraton)

Veritas Capital

690.0

1,000.0

0.69x

24-May-16

31-Mar-17

HP Services

Computer Sciences Corp (nka:DXC)

11,574.9

17,787.0

13.6%

0.65x

4.78x

28-Mar-16

2-Nov-16

Dell Services

NTT DATA Italia S.p.A.

3,055.0

2,826.0

1.08x

27-Apr-15

1-Jul-15

iGATE Corporation

Capgemini North America, Inc.

4,453.6

1,288.1

19.3%

3.46x

17.90x

4.7%

13.5%

9-Mar-15

1-Apr-15

Acentia, LLC

MAXIMUS Federal Services, Inc.

300.7

193.2

11.4%

1.56x

13.67x

Mean

$ 3,634.1

$ 3,608.4

15.0%

1.63x

11.70x

12.8%

18.7%

Median

$ 2,715.2

$ 1,288.1

13.6%

1.08x

11.73x

4.8%

20.9%

$ 1,070.3

-5.7%

Infrastructure Outsourcing 7-Nov-16

27-Feb-17

EarthLink Holdings Corp.

Windstream Holdings, Inc.

7-Nov-16

6-Jan-17

Datalink Corporation

Insight Enterprises, Inc.

26-Aug-16

3-Nov-16

Rackspace Hosting, Inc.

Apollo Global Mgt and Searchlight

4-May-16

1-Jul-16

United Online, Inc.

B. Riley Financial, Inc.

19-Feb-15

1-Apr-15

MegaPath Managed Services

Global Telecom & Tech Americas

959.9

20.6%

1.12x

5.40x

-4.8%

223.1

756.5

2.5%

0.29x

11.72x

19.3%

5.9%

4,314.1

2,073.4

28.4%

2.07x

7.25x

6.0%

37.8%

43.8

145.3

10.4%

0.31x

3.71x

1.9%

-2.7%

152.4

124.0

16.1%

1.23x

7.62x

Mean

$ 1,160.7

811.8

15.6%

1.00x

7.14x

5.6%

8.8%

Median

223.1

756.5

16.1%

1.12x

7.25x

3.9%

1.6%

Distribution 6-Jun-17

1-Sep-17

Westcon Group, Inc.

SYNNEX Corporation

830.0

$ 4,532.1

1.2%

0.18x

15.79x

19-Sep-16

27-Feb-17

Avnet Technology Solutions

Tech Data Corporation

2,645.0

9,652.5

0.27x

17-Feb-16

5-Dec-16

Ingram Micro Inc.

Tianjin Tianhai (nka:HNA Tech)

6,597.2

40,998.3

1.9%

0.16x

8.49x

32.2%

43.3%

18-Aug-15

4-Sep-15

KBZ Communications, Inc.

ScanSource, Inc.

61.5

225.0

0.27x

Mean

$ 2,533.4

$ 13,852.0

1.5%

0.22x

12.14x

32.2%

43.3%

Median

$ 1,737.5

$ 7,092.3

1.5%

0.23x

12.14x

32.2%

43.3%

Sources of information: S&P Capital IQ.

Technology Investment Banking

Q3 TECHNOLOGY DEALS

M&A TRANSACTIONS

III

PUBLIC MARKETS REVIEW

SELECTED MARKET INDICES

Technology Investment Banking Relative Performance

Quarterly - July 1, 2019 to September 30, 2019 120

120

110

100

Annual - October 1, 2018 to September 30, 2019

S&P 500

0.4% -1.1% -0.2% 1.8% -2.0%

60 Jul-19

NASDAQ Composite Index S&P 400 Information Technology (Sector) Russell 1000 Technology Sector Russell 2000 Technology Sector

Aug-19

Sep-19

1.8% -0.5% 7.2% 4.1% 1.2%

60 Oct-18 Nov-18 Dec-18 Jan-19

S&P 500 NASDAQ Composite Index S&P 400 Information Technology (Sector) Russell 1000 Technology Sector Russell 2000 Technology Sector Feb-19 Mar-19 Apr-19 May-19 Jun-19

Jul-19

Aug-19 Sep-19

Sources of information: S&P Capital IQ.

SOFTWARE

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Large Diversified Adobe Inc.

ADBE

276.25

88.2% - 134.8%

$ 134,212.9

10,644.0

17.8%

33.5%

12.61x

12.03x

37.6x

26.6x

Microsoft Corporation

MSFT

139.03

97.7% - 148.0%

1,014,174.0

125,843.0

11.3%

43.4%

8.06x

7.66x

18.6x

17.6x

Oracle Corporation

ORCL

54.79

90.6% - 129.2%

205,638.3

39,531.0

2.5%

40.9%

5.20x

5.19x

12.7x

11.0x

Mean

92.1% - 137.3%

$ 451,341.7

58,672.7

10.5%

39.3%

8.62x

8.29x

23.0x

18.4x

Median

90.6% - 134.8%

$ 205,638.3

39,531.0

11.3%

40.9%

8.06x

7.66x

18.6x

17.6x

Application Software Anaplan, Inc.

PLAN

47.00

77.9% - 230.7%

291.6

31.3%

-49.9%

18.05x

Avalara, Inc.

AVLR

67.29

71.3% - 239.6%

6,172.7 5,030.8

323.1

24.8%

-13.5%

15.57x

13.77x

DocuSign, Inc.

DOCU

61.92

95.2% - 176.6%

11,348.7

827.7

24.9%

-22.3%

13.71x

11.94x

Elastic N.V.

ESTC

82.34

79.1% - 140.6%

6,655.6

304.7

38.9%

-38.3%

17.86x

Intuit Inc.

INTU

265.40

89.7% - 145.3%

67,183.3

6,784.0

11.0%

30.4%

9.90x

9.52x

32.6x

26.9x

Manhattan Associates, Inc.

MANH

80.67

90.1% - 206.8%

5,112.3

589.5

5.0%

22.8%

8.67x

8.51x

38.1x

38.0x

Smartsheet Inc.

SMAR

36.03

64.6% - 177.1%

3,854.0

219.9

37.8%

-27.5%

17.53x

14.43x

SPS Commerce, Inc.

SPSC

47.07

79.6% - 124.1%

1,486.9

263.5

9.5%

18.0%

5.64x

5.36x

31.4x

21.9x

SVMK Inc.

SVMK

17.10

86.3% - 170.1%

2,449.2

276.9

21.3%

-42.7%

8.84x

8.01x

Workiva Inc.

43.83

68.4% - 138.5%

2,045.1

268.8

16.3%

-7.8%

7.61x

7.03x

Mean

80.2% - 175.0%

11,133.9

1,015.0

22.1%

-13.1%

10.94x

11.45x

34.0x

28.9x

Median

79.3% - 173.4%

5,071.6

298.2

23.0%

-17.9%

9.37x

10.73x

32.6x

26.9x

919.9

Human Capital Management Benefitfocus, Inc.

BNFT

23.81

39.3% - 104.3%

272.7

15.7%

-8.1%

3.37x

3.10x

Cornerstone OnDemand, Inc.

CSOD

54.82

87.5% - 119.5%

3,381.4

554.2

13.8%

2.8%

6.10x

5.93x

27.6x

Paycom Software, Inc.

PAYC

209.49

80.7% - 194.9%

12,043.0

652.9

23.4%

33.6%

18.45x

16.51x

39.3x

Paylocity Holding Corporation

PCTY

97.58

86.8% - 182.5%

5,146.3

467.6

19.6%

15.8%

11.01x

10.02x

35.2x

Workday, Inc.

WDAY

169.96

74.9% - 144.4%

39,015.4

3,244.6

23.2%

-8.6%

12.02x

10.86x

Mean

73.8% - 149.1%

10,084.3

1,065.1

19.2%

7.5%

8.49x

9.29x

0.0x

34.0x

Median

80.7% - 144.4%

4,263.9

603.6

19.6%

6.3%

8.55x

10.02x

0.0x

35.2x

Market value equals price per share times number of diluted shares outstanding. Enterprise value equals market value plus debt, preferred stock, and non controlling interests, less cash. Sources of information: S&P Capital IQ.

SOFTWARE (CONTINUED)

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Sales, Marketing, and Customer Service HubSpot, Inc.

HUBS

151.61

72.9% - 139.9%

590.9

24.0%

-5.7%

10.64x

9.45x

LivePerson, Inc.

LPSN

35.70

87.1% - 210.3%

6,284.2 2,286.6

267.3

20.1%

-10.0%

8.55x

7.86x

nm nm

salesforce.com, inc.

CRM

148.44

88.6% - 130.7%

131,429.2

14,729.0

24.1%

14.0%

8.92x

7.79x

29.2x

ServiceSource International, Inc.

SREV

0.88

30.4% - 126.5%

96.3

226.5

-0.9%

-1.2%

0.43x

0.46x

Shopify Inc.

SHOP

311.66

76.1% - 264.9%

34,818.9

1,296.4

34.1%

-7.2%

Yext, Inc.

YEXT

15.89

66.5% - 123.2%

1,775.2

263.5

30.2%

-30.9%

6.74x

5.90x

Zendesk, Inc.

ZEN

72.88

76.8% - 159.8%

8,472.9

703.1

30.6%

-17.6%

12.05x

10.46x

Mean

71.2% - 165.0%

26,451.9

2,582.4

23.2%

-8.4%

7.89x

6.99x

29.2x

Median

76.1% - 139.9%

6,284.2

590.9

24.1%

-7.2%

8.74x

7.83x

29.2x

6,863.7

Business Analytics Alteryx, Inc.

AYX

107.43

72.7% - 254.4%

309.8

33.6%

7.4%

18.36x

Cloudera, Inc.

CLDR

8.86

43.9% - 181.2%

2,344.5

647.7

11.4%

-28.9%

3.62x

3.04x

MicroStrategy Incorporated

MSTR

148.37

96.7% - 128.5%

1,061.8

487.2

6.8%

-0.5%

2.18x

2.17x

25.6x

GlobalData Plc

DATA

10.21

94.3% - 152.3%

1,319.7

217.4

5.4%

17.8%

6.07x

6.06x

34.1x

25.2x

Teradata Corporation

TDC

31.00

62.7% - 104.7%

3,563.1

2,060.0

2.7%

7.3%

1.73x

1.80x

23.8x

9.1x

Mean

74.1% - 164.2%

3,030.6

744.4

12.0%

0.6%

3.40x

6.29x

28.9x

20.0x

Median

72.7% - 152.3%

2,344.5

487.2

6.8%

7.3%

2.90x

3.04x

28.9x

25.2x

18,310.1

Design and Engineering ANSYS, Inc.

ANSS

221.36

99.8% - 161.8%

1,390.6

10.3%

39.9%

13.17x

12.29x

33.0x

27.0x

Autodesk, Inc.

ADSK

147.70

82.5% - 125.5%

33,620.8

2,930.5

21.5%

9.8%

11.47x

10.32x

39.0x

Cadence Design Systems, Inc.

CDNS

66.08

85.7% - 169.1%

18,544.7

2,259.5

6.9%

27.1%

8.21x

7.97x

30.3x

22.4x

PTC Inc.

PTC

68.18

63.5% - 109.9%

8,250.9

1,233.1

15.5%

10.4%

6.69x

6.27x

19.5x

Synopsys, Inc.

SNPS

137.25

93.6% - 173.4%

20,402.2

3,304.7

7.7%

19.3%

6.17x

5.99x

32.0x

21.3x

Mean

85.0% - 147.9%

19,825.8

2,223.7

12.4%

21.3%

9.14x

8.57x

31.7x

25.8x

Median

85.7% - 161.8%

18,544.7

2,259.5

10.3%

19.3%

8.21x

7.97x

32.0x

22.4x

SOFTWARE (CONTINUED)

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Infrastructure Appian Corporation

APPN

47.50

75.5% - 210.1%

Carrefour SA

17.51

88.4% - 112.7%

3,215.3

241.7

16.8%

-21.5%

13.31x

12.30x

87,812.9

4.4%

0.39x

0.43x

8.8x

7.2x

Carbonite, Inc.

CARB

15.49

42.6% - 130.6%

Citrix Systems, Inc.

CTXS

96.52

86.0% - 106.9%

1,109.3

357.4

14.9%

10.1%

3.10x

2.39x

30.7x

8.3x

13,541.8

3,002.2

4.7%

26.1%

4.51x

4.52x

17.3x

13.2x

Commvault Systems, Inc.

CVLT

44.71

63.6% - 109.8%

1,588.3

697.0

Domo, Inc.

DOMO

15.98

33.9% - 120.3%

404.8

158.7

2.2%

6.1%

2.28x

2.34x

37.5x

17.2x

13.2%

-72.6%

2.55x

2.41x

MongoDB, Inc.

MDB

120.48

65.2% - 193.4%

7,179.6

346.0

29.5%

-30.0%

18.22x

Progress Software Corporation

PRGS

38.06

80.0% - 125.9%

1,854.4

412.5

2.3%

33.1%

4.50x

4.35x

13.6x

11.0x

Pivotal Software, Inc.

PVTL

14.92

61.2% - 185.8%

SolarWinds Corporation

SWI

18.45

86.9% - 150.6%

3,656.1

716.1

16.0%

-17.7%

5.11x

4.75x

7,437.1

879.0

12.1%

24.6%

8.46x

7.87x

34.4x

16.6x

Splunk Inc.

SPLK

117.86

Twilio Inc.

TWLO

109.96

82.0% - 140.8%

17,202.1

2,044.5

21.7%

-9.9%

8.41x

7.43x

44.9x

72.8% - 176.1%

14,155.8

881.4

32.8%

-20.1%

16.06x

12.66x

Varonis Systems, Inc.

VRNS

59.78

74.7% - 122.8%

1,753.5

270.6

6.2%

-15.9%

6.48x

6.82x

VMware, Inc.

VMW

150.06

72.6% - 116.6%

63,454.9

9,496.0

10.1%

26.5%

6.68x

6.33x

25.2x

16.4x

34,132.4

Mean

70.4% - 143.0%

12,191.8

7,665.4

13.3%

-4.1%

6.30x

6.63x

23.9x

16.8x

Median

73.8% - 128.3%

5,417.9

706.5

12.6%

-2.7%

5.11x

5.54x

25.2x

14.8x

2,713.4

Collaboration Box, Inc.

BOX

16.56

66.4% - 132.9%

Dropbox, Inc.

DBX

20.17

74.3% - 117.3%

655.2

12.5%

-12.8%

4.14x

3.93x

8,237.5

1,523.3

14.7%

7.1%

5.41x

4.99x

22.0x

LogMeIn, Inc.

LOGM

70.96

RingCentral, Inc.

RNG

125.66

73.3% - 109.0%

3,708.0

1,239.9

5.0%

26.6%

2.99x

2.94x

11.3x

9.0x

85.8% - 195.1%

10,272.9

779.1

23.0%

0.9%

13.19x

11.74x

Workiva Inc.

43.83

68.4% - 138.5%

2,045.1

268.8

16.3%

-7.8%

7.61x

7.03x

Mean

73.6% - 138.5%

5,395.4

893.2

14.3%

2.8%

6.67x

6.12x

11.3x

15.5x

Median

73.3% - 132.9%

3,708.0

779.1

14.7%

0.9%

5.41x

4.99x

11.3x

15.5x

SOFTWARE (CONTINUED)

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Healthcare Cerner Corporation

CERN

68.17

89.1% - 139.7%

5,526.7

6.4%

21.8%

4.00x

3.87x

18.4x

Computer Programs and Systems, Inc.

CPSI

22.61

66.5% - 109.1%

22,107.0 442.6

276.9

2.1%

12.1%

1.60x

1.61x

13.2x

13.3x 9.2x

HealthStream, Inc.

HSTM

25.89

83.0% - 112.3%

710.6

248.7

-0.1%

12.6%

2.86x

2.78x

22.8x

16.7x

Inovalon Holdings, Inc.

INOV

16.39

92.1% - 178.3%

3,456.9

584.6

8.7%

27.5%

5.91x

5.40x

21.5x

16.8x

Medidata Solutions, Inc.

MDSO

91.50

92.8% - 152.2%

5,517.7

684.6

14.9%

11.4%

8.06x

7.45x

30.9x

NantHealth, Inc.

0.72

36.6% - 159.4%

289.3

94.6

10.5%

-29.3%

3.06x

2.89x

NextGen Healthcare, Inc.

NXGN

15.67

74.2% - 115.2%

1,056.9

527.8

3.6%

7.2%

2.00x

1.97x

27.6x

11.8x

Veeva Systems Inc.

VEEV

152.69

86.3% - 192.6%

22,137.4

968.7

18.9%

29.8%

Mean

77.6% - 144.9%

6,964.8

1,114.1

8.1%

11.6%

3.93x

3.71x

20.7x

16.4x

Median

84.6% - 146.0%

2,256.9

556.2

7.5%

12.3%

3.06x

2.89x

21.5x

15.0x

3,360.9

Other Vertical AppFolio, Inc.

APPF

95.14

86.6% - 186.0%

221.2

26.3%

8.1%

15.19x

13.21x

Blackbaud, Inc.

BLKB

90.34

88.4% - 155.1%

4,979.2

872.2

4.9%

13.7%

5.71x

5.56x

41.7x

27.4x

CDK Global, Inc.

CDK

48.09

75.3% - 115.9%

8,465.4

1,914.8

-0.6%

36.4%

4.42x

4.09x

12.1x

10.6x

Ebix, Inc.

EBIX

42.10

52.6% - 124.9%

2,031.9

552.2

20.2%

31.0%

3.68x

3.43x

11.9x

9.9x

Guidewire Software, Inc.

GWRE

105.38

93.0% - 142.8%

7,856.5

719.5

15.1%

5.6%

10.92x

11.06x

Instructure, Inc.

INST

38.74

77.2% - 131.4%

1,461.9

232.4

20.4%

-22.7%

6.29x

5.64x

Q2 Holdings, Inc.

QTWO

78.87

84.2% - 181.7%

3,711.2

276.7

22.2%

-10.6%

13.41x

11.81x

Square, Inc.

61.95

61.2% - 124.3%

27,667.1

3,948.2

33.5%

0.9%

7.01x

12.18x

SS&C Technologies Holdings, Inc.

SSNC

51.57

76.1% - 125.9%

21,646.8

4,388.6

3.5%

36.3%

4.93x

4.71x

13.6x

12.0x

Tyler Technologies, Inc.

TYL

262.50

99.1% - 151.5%

10,507.5

1,000.2

10.7%

19.1%

10.50x

9.62x

34.5x

Zuora, Inc.

ZUO

15.05

61.1% - 115.4%

1,528.2

258.7

18.4%

-29.4%

5.91x

5.53x

Mean

77.7% - 141.4%

8,474.2

1,307.7

15.9%

8.0%

8.00x

7.89x

19.8x

18.9x

Median

77.2% - 131.4%

4,979.2

719.5

18.4%

8.1%

6.29x

5.64x

12.9x

12.0x

SECURITY

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Cyber Security Check Point Software Technologies Ltd.

CHKP

109.50

82.5% - 111.1%

1,956.3

3.0%

46.6%

7.74x

7.59x

16.6x

14.7x

FireEye, Inc.

FEYE

13.34

64.7% - 105.4%

15,143.6 2,916.0

857.3

8.0%

-13.1%

3.40x

3.35x

28.2x

Forescout Technologies, Inc.

FSCT

37.92

81.7% - 172.3%

1,787.3

324.2

21.0%

-24.0%

5.51x

4.81x

Fortinet, Inc.

FTNT

76.76

79.2% - 119.2%

11,395.2

1,955.2

13.5%

17.1%

5.83x

5.39x

34.2x

20.4x

MobileIron, Inc.

MOBL

6.55

84.0% - 164.4%

639.1

202.3

10.8%

-20.0%

3.16x

3.05x

Okta, Inc.

OKTA

98.46

69.4% - 235.1%

12,209.6

486.8

30.7%

-29.7%

25.08x

21.69x

OneSpan Inc.

OSPN

14.50

67.1% - 127.1%

516.0

221.1

9.1%

0.1%

2.33x

2.22x

23.8x

Palo Alto Networks, Inc.

PANW

203.83

78.2% - 127.3%

18,453.3

2,899.6

20.4%

3.9%

6.36x

5.86x

24.4x

Proofpoint, Inc.

PFPT

129.05

97.1% - 170.0%

7,230.6

800.0

20.0%

-3.4%

9.04x

8.22x

49.9x

Qualys, Inc.

QLYS

75.57

77.8% - 114.6%

2,822.8

300.1

15.5%

30.5%

9.41x

8.77x

30.8x

21.9x

Rapid7, Inc.

RPD

45.39

68.8% - 172.8%

2,317.0

283.3

23.3%

-10.3%

8.18x

7.24x

SailPoint Technologies Holdings, Inc.

SAIL

18.69

54.1% - 112.4%

1,629.6

270.0

15.9%

4.7%

6.04x

5.82x

SecureWorks Corp.

SCWX

12.93

51.9% - 124.7%

963.3

533.2

6.5%

-0.6%

1.81x

1.77x

Symantec Corporation

SYMC

23.63

90.6% - 135.6%

17,748.7

4,822.0

1.7%

22.5%

3.68x

3.66x

16.3x

Tenable Holdings, Inc.

TENB

22.38

56.8% - 111.9%

1,991.8

310.3

24.3%

-25.8%

6.42x

5.71x

Zscaler, Inc.

47.26

52.8% - 153.8%

5,796.8

302.8

29.3%

-4.2%

19.14x

16.47x

nm 8.4x

Mean

72.3% - 141.1%

6,472.5

1,032.8

15.8%

-0.4%

7.70x

6.98x

24.5x

24.0x

Median

73.6% - 127.2%

2,869.4

405.5

15.7%

-2.0%

6.20x

5.77x

23.7x

22.9x

ENTERPRISE SYSTEMS

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

EV / EBITDA

2019 E

LTM

2019 E

Large Diversified Apple Inc.

AAPL

223.97

95.9% - 157.7%

$ 1,025,964.7

$ 259,034.0

6.7%

29.6%

3.96x

3.93x

13.4x

13.6x

Hewlett Packard Enterprise Company

HPE

15.17

89.1% - 125.5%

28,936.0

29,866.0

1.6%

17.5%

0.97x

0.99x

5.5x

HP Inc.

HPQ

18.92

69.9% - 110.6%

28,202.6

58,715.0

-0.4%

8.5%

0.48x

5.6x

International Business Machines Corporation

IBM

145.42

94.2% - 137.3%

160,982.0

77,859.0

3.9%

22.1%

2.07x

9.4x

9.0x

Oracle Corporation

ORCL

54.79

90.6% - 129.2%

205,638.3

39,531.0

2.5%

40.9%

5.20x

5.19x

12.7x

11.0x

Mean

87.9% - 132.1%

289,944.7

93,001.0

2.8%

23.7%

2.54x

2.53x

9.3x

9.0x

Median

90.6% - 129.2%

160,982.0

58,715.0

2.5%

22.1%

2.07x

9.4x

9.0x

423.8

Networking A10 Networks, Inc.

ATEN

6.94

83.7% - 126.0%

221.8

3.6%

-5.7%

1.91x

2.07x

Arista Networks, Inc.

ANET

238.92

72.1% - 127.7%

16,716.0

2,362.8

15.9%

34.2%

7.07x

6.57x

20.7x

17.1x

Cisco Systems, Inc.

CSCO

49.04

84.2% - 121.8%

201,013.8

51,904.0

3.1%

30.7%

3.87x

3.85x

12.6x

10.7x

Extreme Networks, Inc.

EXTR

7.28

84.7% - 151.2%

898.7

995.8

10.2%

4.7%

0.90x

0.87x

19.3x

F5 Networks, Inc.

FFIV

140.42

71.9% - 115.7%

7,457.0

2,214.8

4.4%

28.5%

3.37x

3.30x

11.8x

9.1x

Juniper Networks, Inc.

JNPR

24.75

80.4% - 110.4%

7,753.4

4,465.0

3.4%

16.4%

1.74x

1.73x

10.6x

8.0x

NETGEAR, Inc.

NTGR

32.22

51.3% - 130.8%

838.1

1,038.3

3.5%

7.1%

0.81x

0.80x

11.3x

9.0x

NetScout Systems, Inc.

NTCT

23.06

76.1% - 110.1%

1,892.9

890.8

4.4%

15.0%

2.12x

2.15x

14.1x

Mean

75.5% - 124.2%

29,624.2

8,011.7

6.1%

16.4%

2.72x

2.67x

14.4x

10.8x

Median

78.2% - 123.9%

4,675.0

1,626.5

4.0%

15.7%

2.02x

2.11x

12.6x

9.1x

10,678.8

Storage NetApp, Inc.

NTAP

52.02

59.9% - 116.8%

5,908.0

3.2%

20.2%

1.81x

1.88x

8.9x

8.1x

Pure Storage, Inc.

PSTG

16.94

64.3% - 133.6%

3,980.1

1,518.0

20.5%

-9.2%

2.62x

2.38x

29.2x

Quantum Health Group Limited

QTM

0.01

50.0% - 135.7%

22.3

41.4

6.7%

0.54x

8.0x

Mean

58.1% - 128.7%

4,893.7

2,489.2

11.9%

5.9%

1.66x

2.13x

8.5x

18.6x

Median

59.9% - 133.6%

3,980.1

1,518.0

11.9%

6.7%

1.81x

2.13x

8.5x

18.6x

INTERNET

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Internet Retail Amazon.com, Inc.

AMZN

$ 1,735.91

85.3% - 132.8%

$ 888,829.3

$ 252,063.0

18.8%

13.1%

3.53x

3.19x

26.8x

Blue Apron Holdings, Inc.

APRN

8.43

32.5% - 138.2%

169.2

552.4

2.3%

-4.5%

0.31x

0.36x

21.4x na

Booking Holdings Inc.

BKNG

$ 1,962.61

94.3% - 122.2%

85,976.0

14,749.0

9.1%

38.4%

5.83x

5.65x

15.2x

14.5x

CarGurus, Inc.

CARG

30.95

54.9% - 104.4%

3,410.2

525.5

21.2%

5.7%

6.49x

5.85x

eBay Inc.

EBAY

38.98

92.8% - 149.9%

38,216.0

10,856.0

4.8%

28.9%

3.52x

3.53x

12.2x

10.3x

Etsy, Inc.

ETSY

56.50

77.0% - 148.6%

6,694.6

700.8

23.7%

18.4%

9.55x

8.34x

35.6x

Eventbrite, Inc.

17.71

45.1% - 115.8%

1,176.8

311.6

14.5%

-10.6%

3.78x

3.73x

EverQuote, Inc.

EVER

21.34

84.6% - 526.9%

545.0

189.4

20.1%

-8.8%

2.88x

2.50x

Expedia Group, Inc.

EXPE

134.41

93.3% - 124.3%

24,215.7

11,597.0

9.5%

12.0%

2.09x

1.99x

17.4x

Groupon, Inc.

GRPN

2.66

66.5% - 115.2%

1,296.1

2,503.8

1.0%

5.1%

0.52x

0.54x

10.1x

5.0x

Grubhub Inc.

GRUB

56.21

40.1% - 105.6%

5,425.2

1,183.8

27.3%

9.7%

4.58x

3.98x

47.3x

22.5x

Match Group, Inc.

MTCH

71.44

74.9% - 214.5%

21,758.9

1,863.9

17.7%

33.0%

11.67x

10.53x

35.4x

27.4x

Netflix, Inc.

NFLX

267.62

69.2% - 115.7%

129,121.5

17,630.3

22.8%

11.1%

7.32x

6.39x

40.4x

Overstock.com, Inc.

OSTK

10.59

35.6% - 118.2%

377.1

1,634.6

2.6%

-8.0%

0.23x

0.24x

Stitch Fix, Inc.

SFIX

19.25

41.2% - 119.9%

1,685.7

1,463.7

15.6%

2.9%

1.15x

0.96x

39.2x

36.7x

TripAdvisor, Inc.

TRIP

38.68

56.1% - 109.2%

4,592.1

1,602.0

8.5%

16.5%

2.87x

2.84x

17.4x

9.7x

Wayfair Inc.

112.12

64.5% - 146.4%

11,160.7

8,007.7

29.7%

-6.8%

1.39x

1.21x

10.7x

Mean

65.2% - 153.4%

72,038.2

19,260.9

14.7%

9.2%

3.98x

3.64x

24.5x

21.3x

Median

66.5% - 122.2%

5,425.2

1,634.6

15.6%

9.7%

3.52x

3.19x

17.4x

21.4x

INTERNET (CONTINUED)

Technology Investment Banking Selected Companies Review

($ in millions, except per security)

Market Statistics

Metrics

Valuation Benchmarks

Closing Price

% of 52-week

Enterprise

Revenue

Ticker

30-Sep-19

High-Low

Value

LTM

Alphabet Inc.

GOOG.L

$ 1,221.14

94.2% - 124.9%

$ 739,163.1

$ 148,299.0

17.4%

29.3%

4.98x

4.55x

17.0x

AutoWeb, Inc.

AUTO

3.10

62.0% - 163.2%

42.8

122.7

7.9%

-11.9%

0.35x

Care.com, Inc.

CRCM

10.45

40.5% - 137.3%

303.6

203.3

7.3%

6.3%

1.49x

1.46x

23.7x

14.7x

CoStar Group, Inc.

CSGP

593.20

92.8% - 187.8%

20,605.8

1,293.3

15.5%

32.9%

15.93x

14.84x

48.4x

40.8x

Facebook, Inc.

178.08

85.3% - 144.8%

467,848.3

62,604.0

21.7%

42.7%

7.47x

6.66x

17.5x

12.4x

Snap Inc.

SNAP

15.80

86.1% - 327.8%

20,966.5

1,396.0

34.5%

-72.9%

15.02x

12.35x

TechTarget, Inc.

TTGT

22.53

89.6% - 202.6%

635.6

126.8

10.0%

17.9%

5.01x

4.76x

27.9x

15.9x

TripAdvisor, Inc.

TRIP

38.68

56.1% - 109.2%

4,592.1

1,602.0

8.5%

16.5%

2.87x

2.84x

17.4x

9.7x

Twitter, Inc.

TWTR

41.20

89.8% - 157.3%

28,693.9

3,295.2

15.9%

24.7%

8.71x

8.06x

35.3x

21.9x

Yelp Inc.

YELP

34.75

69.6% - 118.5%

2,380.3

967.7

12.1%

6.1%

2.46x

2.33x

40.5x

10.6x

Yext, Inc.

YEXT

15.89

66.5% - 123.2%

1,775.2

263.5

30.2%

-30.9%

6.74x

5.90x

Zillow Group, Inc.

29.55

57.9% - 112.8%

6,092.8

1,762.1

75.1%

-4.8%

3.46x

2.40x

Mean

74.2% - 159.1%

$ 107,758.3

18,494.6

21.3%

4.7%

6.21x

5.54x

28.5x

17.3x

Median

77.5% - 141.0%

1,344.6

15.7%

11.4%

5.00x

4.65x

25.8x

13.6x

Company

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Internet Content and Search

5,342.4

12.5x

PROFESSIONAL SERVICES AND DISTRIBUTION

Technology Investment Banking

Selected Companies Review ($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Large Diversified International Business Machines Corporation

IBM

145.42

94.2% - 137.3%

$ 160,982.0

CACI International Inc

CACI

231.26

98.4% - 167.1%

Cognizant Technology Solutions Corporation

CTSH

60.27

77.4% - 106.2%

31,934.8

DXC Technology Company

DXC

29.50

31.2% - 101.1%

17,282.9

EPAM Systems, Inc.

EPAM

182.32

90.7% - 174.0%

ManTech International Corporation

MANT

71.41

Perficient, Inc.

PRFT

38.58

Presidio, Inc.

PSDO

Science Applications International Corporation

SAIC

Unisys Corporation Virtusa Corporation

77,859.0

3.9%

22.1%

2.07x

9.4x

9.0x

4,986.3 16,458.0

8.1%

9.5%

1.48x

1.37x

15.5x

14.9x

5.3%

19.4%

1.94x

1.91x

10.0x

9.8x

20,361.0

1.3%

19.7%

0.85x

4.3x

4.1x

9,937.9

2,046.0

21.9%

15.7%

4.86x

4.37x

30.9x

23.4x

99.2% - 148.0%

3,032.8

2,033.2

8.1%

8.5%

1.49x

1.40x

17.6x

16.6x

97.1% - 184.4%

1,387.8

531.3

6.7%

12.6%

2.61x

2.46x

20.7x

15.1x

16.90

96.6% - 140.4%

2,352.3

3,026.1

2.5%

7.3%

0.78x

0.77x

10.7x

10.1x

86.96

94.0% - 149.5%

7,223.5

5,578.0

4.4%

8.4%

1.29x

1.12x

15.4x

13.5x

UIS

7.43

36.4% - 116.3%

842.4

2,898.8

2.3%

8.3%

0.29x

3.5x

1.9x

VRTU

36.02

63.2% - 112.6%

1,437.2

1,266.9

9.2%

7.7%

1.13x

1.09x

14.7x

11.8x

Consulting 7,359.5

Mean

78.4% - 140.0%

8,279.1

5,918.6

7.0%

11.7%

1.67x

1.57x

14.3x

12.1x

Median

92.4% - 144.2%

5,128.1

2,962.5

6.0%

9.0%

1.39x

1.25x

15.1x

12.6x

15,328.5

2,794.6

7.0%

28.0%

5.49x

5.36x

19.6x

13.0x

182.5

11.7%

-1.6%

1.83x

1.69x

18.6x

Infrastructure Outsourcing Akamai Technologies, Inc.

AKAM

91.38

98.1% - 159.8%

Limelight Networks, Inc.

LLNW

3.03

59.2% - 137.7%

333.8

Mean

78.7% - 148.8%

7,831.1

1,488.5

9.3%

13.2%

3.66x

3.52x

19.6x

15.8x

Median

78.7% - 148.8%

7,831.1

1,488.5

9.3%

13.2%

3.66x

3.52x

19.6x

15.8x

PROFESSIONAL SERVICES AND DISTRIBUTION (CONTINUED)

Technology Investment Banking

Selected Companies Review ($ in millions, except per security)

Market Statistics Company

Ticker

Metrics

Closing Price

% of 52-week

Enterprise

Revenue

30-Sep-19

High-Low

Value

LTM

Valuation Benchmarks

Rev. Growth LTM EBITDA 2020 E

Margin

EV / Revenue LTM

2019 E

EV / EBITDA LTM

2019 E

Solution Providers CDW Corporation

CDW

123.24

99.1% - 165.8%

17,035.8

5.7%

7.7%

1.27x

1.23x

16.6x

15.3x

ePlus inc.

PLUS

76.09

79.4% - 116.1%

21,665.0 1,213.7

1,397.5

4.9%

7.4%

0.87x

0.84x

11.8x

12.0x

Insight Enterprises, Inc.

NSIT

55.69

92.7% - 147.4%

2,254.5

7,018.3

18.9%

4.0%

0.32x

0.29x

8.0x

7.5x

PC Connection, Inc.

CNXN

38.90

91.6% - 143.9%

970.1

2,742.0

4.0%

4.1%

0.35x

8.7x

8.5x

Mean

90.7% - 143.3%

5,220.7

6,070.1

7.0%

5.1%

0.56x

0.54x

9.0x

8.7x

Median

92.1% - 145.7%

1,213.7

2,742.0

4.9%

4.1%

0.35x

8.7x

8.5x

3,824.0

Distribution Anixter International Inc.

AXE

69.12

97.5% - 138.1%

8,669.2

3.7%

4.8%

0.44x

0.43x

9.1x

8.4x

Arrow Electronics, Inc.

ARW

74.58

86.1% - 119.6%

9,809.7

29,909.2

-0.5%

4.1%

0.33x

0.34x

8.0x

8.3x

Avnet, Inc.

AVT

44.49

90.7% - 132.6%

5,712.6

19,518.6

2.0%

4.1%

0.29x

0.31x

7.2x

8.5x

ScanSource, Inc.

SCSC

30.55

69.0% - 113.8%

1,112.1

3,873.1

0.1%

3.7%

0.29x

7.8x

7.9x

SYNNEX Corporation

SNX

112.52

97.9% - 156.7%

8,801.8

23,005.9

1.6%

5.2%

0.38x

7.4x

7.0x

Tech Data Corporation

TECD

104.24

93.8% - 155.7%

4,599.4

37,303.2

1.7%

2.0%

0.12x

6.1x

5.5x

Mean

89.2% - 136.1%

5,643.3

20,379.9

1.4%

4.0%

0.31x

7.6x

Median

92.3% - 135.3%

5,156.0

21,262.2

1.6%

4.1%

0.31x

0.32x

7.6x

8.1x