ICON Cybersecurity Sector Briefing by ICON Corporate Finance

CYBERSECURITY SECTOR BRIEFING

SEPTEMBER 2019 - CONFIDENTIAL

SEPTEMBER 2019

SEPTEMBER 2019 - CONFIDENTIAL

INTRODUCTION TO ICON CORPORATE FINANCE

ICON AT A GLANCE SPECIALIST INDEPENDENT M&A AND FUNDRAISING ADVISER TO FAST-GROWING TECHNOLOGY BUSINESSES

INDEPENDENT

TRUSTED

Independent advice on strategy, fundraising and M&A, creating significant value for shareholders, customers, employees and other stakeholders

Consistent track record of success built on M&A know-how, negotiation skills and providing the best advice and outcomes possible to our clients on turning technology into wealth

GLOBAL

TECH EXPERTS

LEADER IN TECHNOLOGY DEALS 250+

100+

Deals

Combined years of deal making

100%

Dedicated to tech sector

Senior Investment Bankers

INDUSTRY FOCUS

Enterprise Software

Fintech

Cybersecurity

Cloud/ Comms

Healthtech

Digital Media

AWARDS & ACCOLADES

FINALIST, UK CORPORATE FINANCE HOUSE OF THE YEAR 2018

Extensive international transaction experience and global network, providing access to the most relevant investors, buyers and strategic partners

Experts in the technology sector, we have a deep understanding of disruptive business models and the entrepreneurial journey from start-up to successful exit

“We act exclusively for tech companies. Our clients are changing the world and we help them secure funding to build great companies and realise maximum value when they come to sell”, Alan Bristow, Founder & CEO of ICON

SEPTEMBER 2019 - CONFIDENTIAL

LONG ESTABLISHED TEAM OF SEASONED DEAL MAKERS HIGHLY EXPERIENCED, INTERNATIONAL, COMMITTED AND AWARD-WINNING

Alan Bristow – Founder, CEO ▪ Focus: Enterprise Software, Cloud (SaaS), eCommerce, IoT, Telecoms, Cyber Security ▪ Specialist in M&A and funding, advised on over 250 transactions ▪ Over 20 years of experience

Nicky Cotter – Co-Founder, Head of FinTech ▪ Focus: FinTech, RegTech, InsurTech ▪ Specialist in M&A and funding from VCs, CVCs ▪ Co-founder of The FinTech50 & FinTechCity.com, Finastra World Trade Symposium Board member

Brian Parker – Partner, Head of M&A ▪ Focus: Enterprise Software, Financial Services, Wireless, Security, e-Commerce, Outsourcing & ICT Services ▪ Specialist exclusively in M&A ▪ Author, annual ‘Technology M&A Review’ ▪ Over 25 years of experience

Eddie Harding – Partner ▪ Focus: FinTech, Enterprise Software, Digital Media, Cloud (SaaS), Cyber Security, eCommerce ▪ Specialist in M&A and funding ▪ Over 20 years of experience

Simon Moynagh – Partner ▪ Focus: Enterprise Software, FinTech. Digital Media, Energy, Electronics & e-Commerce ▪ Specialist in M&A and funding ▪ Over 7 years of experience

Florian Depner – Director ▪ Focus: Cyber Security, Enterprise Software, Infrastructure Software, Digital Media ▪ Specialist in M&A and funding ▪ Over 10 years of experience

Monica Shupikai Simmons – Director ▪ Focus: FinTech, HealthTech, e-Commerce ▪ Specialist in M&A and funding ▪ Over 17 years of experience in deal making, in London & New York, with extensive US investor network on East & West coasts

James Kenward – Director ▪ Focus: Capital Markets, RegTech, Telco, Logistics & IT Services ▪ Specialist in M&A and funding ▪ Over 12 years of experience

Ritika Hiranandani – US Representative

Emily Rose – Associate ▪ Transaction support ▪ Assistance on M&A & Funding research ▪ Target list creation ▪ IM preparation

Younes Benchaiba – Analyst ▪ Transaction support ▪ Assistance on M&A & Funding research ▪ Target list creation ▪ IM preparation ▪ Deal sourcing

Laura Stepney – Transaction Support ▪ Assistance on M&A & Funding research ▪ Target list creation ▪ IM preparation

SEPTEMBER 2019 - CONFIDENTIAL

▪ Specialist in strategic partnerships across US and India ▪ Buyer reach ▪ Extensive US investor network on East & West coasts and India

GLOBAL TRANSACTION TRACK RECORD SELECTED RECENT DEALS ADVISED BY ICON CORPORATE FINANCE

SOLD TO

STRATEGIC INVESTMENT

SOLD TO

STRATEGIC INVESTMENT

SERVICENOW CONSULTING

FINTECH

HCM

ENERGY MANAGEMENT SOLUTIONS

BACK OFFICE SOFTWARE

ELECTRIC AUTOMOTIVE “V2G” IoT MGT S/W

SOLD TO

GRC SOFTWARE

UNIFIED COMMUNICATIONS

SOLD TO

STRATEGIC INVESTMENT

SOLD TO

ACQUIRED BY

SOLD TO STRATEGIC INVESTMENT

SOLD TO

HEALTHTECH

ENERGY

FINTECH

REGTECH

Cybersecurity

VIDEO TECH SaaS

SEPTEMBER 2019 - CONFIDENTIAL

CYBERSECURITY MARKET OVERVIEW

A MASSIVE $124 BILLION MARKET OPPORTUNITY CYBERSECURITY IS NOW ONE OF THE LARGEST TECHNOLOGY CATEGORIES BUT THE MARKET REMAINS HIGHLY FRAGMENTED

($bn) 11% CAGR

124 114

Consumer Security Software (+5.8%)

102

Security Services (+10.8%) Other Information Security Software (+11.7%)

▪ Services (subscription and managed) represent 50% of total market spend

Network Security Equipment (+10.5%)

▪ Widely publicised data breaches comprising millions of personal data records highlight importance of protecting sensitive data assets

Integrated Risk Management (+9.2%) Infrastructure Protection (+10.4%) Identity Access Management (+9.5%)

Data Security (+17.3%) Cloud Security (+57.5%) Application Security (+11.1%)

2017

2018

2019

▪ According to Gartner, worldwide spending on cybersecurity is predicted to reach over $124bn in 2019 (CAGR of 10.6% 2017-2019)

▪ Nation-state level attacks drive the demand for protection of mission-critical IT infrastructure ▪ Security and risk management have become a top board-level priority and are increasingly regarded as a competitive differentiator ▪ Market remains highly fragmented: with app. 2,500 vendors and a large amount of VC funding creating new companies, consolidation is accelerating Source(s): Gartner 2018; Note: percentage represents CAGR 2017-2019

SEPTEMBER 2019 - CONFIDENTIAL

INCREASING COST OF CYBERCRIME THE GLOBAL ECONOMY IS ESTIMATED TO LOSE $5.2 TRILLION IN VALUE OVER THE NEXT FIVE YEARS BECAUSE OF CYBERCRIME (ACCENTURE, JULY 2019)

Source(s): Accenture: Ninth Annual Cost of Cybercrime Study , March 2019

SEPTEMBER 2019 - CONFIDENTIAL

MARKET SPEND DRIVEN BY A CONTINUOUS ARMS RACE BETWEEN GOOD AND BAD MAJOR NON-CYCLICAL TRENDS ARE SHAPING THE RAPIDLY ADVANCING CYBERSECURITY LANDSCAPE

THREAT SOPHISTICATION ▪ Increasing frequency and complexity of attacks from a constantly evolving threat landscape ▪ Continuous responsiveness required through deployment of behavioural analytics and ML, complementing traditional/legacy security solutions ▪ Need for ‘Defence in Depth’ covering technology, operations and people

REGULATION ▪ Compliance with regulatory requirements such as the EU’s GDPR(1) or California’s CCPA(2) and adaptation of projects and workflows to assure data privacy ▪ Security solutions need to be capable to deliver compliance and protection at the same time

END-POINT PROLIFERATION ▪ Extensive use of cloud applications by a mobile-first workforce increases the attack vectors and vulnerabilities ▪ Organisations are moving from perimeter protection to ‘Zero Trust’ as the new industry standard ▪ Exponential growth in connected low security IoT devices is adding to an increasingly complex attack surface

EXPLOSIVE DATA GROWTH ▪ Data creation doubles in size approximately every two years with a plethora of confidential and sensitive data stored in many disparate silos ▪ Privacy concerns, data loss prevention and data breach awareness continue to drive market demand for security solutions

DIGITAL TRANSFORMATION ▪ New architectures and computing models are creating fresh opportunities to exploit (Cloud, Containers, Dev Opps, OSS) ▪ Cloud now the preferred delivery model for enterprise applications ▪ Shift to multi-cloud infrastructure is accelerating and driving demand for vendor agnostic security solutions

PERSISTING SKILLS SHORTAGE ▪ Highly competitive labour market for cyber talent: unemployment rate for cybersecurity professionals at zero ▪ Organisations increasingly invest in automation and orchestration to address cybersecurity tasks ▪ Outsourcing to specialised services providers (MSSPs) rather than onpremise deployment is accelerating

Note(s): (1) GDPR – General Data Protection Regulation; (2) CCPA – California Consumer Privacy Act

SEPTEMBER 2019 - CONFIDENTIAL

CRITICAL COMPONENTS FOR A HOLISTIC CYBERSECURITY STRATEGY CYBERSECURITY AND ENTERPRISE RISK MANAGEMENT FRAMEWORK, ENABLED THROUGH TECHNOLOGY

▪ ▪ ▪ ▪

NETWORK SECURITY Prevent unauthorised access Protection from external and internal threats Manage and monitor activity Establish and test controls

INFORMATION RISK MANAGEMENT

END USER EDUCATION AND AWARENESS

▪ Establish risk governance structure and determine risk appetite ▪ Design appropriate information risk management policies

▪ Define user policies for appropriate use of enterprise systems ▪ Establish cyber and risk awareness training programs

MALWARE PREVENTION ▪ Implement anti-malware protection mechanisms ▪ Scan for and neutralise malicious code across the entire organisation

MONITORING ▪ Continuous monitoring of all systems, networks, devices and user activity ▪ Log file and behavioural analytics INCIDENT MANAGEMENT ▪ Implement incident response and disaster recovery policy and capabilities ▪ Reporting procedures

HOME AND MOBILE WORKING

Identify

5 Recover

▪ Define mobile working user policies ▪ Protect and control all mobile devices ▪ Protect exchange and storage of data

4 Respond

Protect 2 3

Detect

MANAGING USER PRIVILEGES ▪ Implement account management processes: limit user privileges and monitor user activity ▪ Control access to activity and audit logs

SECURE CONFIGURATION ▪ Maintain secure configuration of all ICT systems ▪ Patch management and pen testing ▪ Establish system inventory and certificate management REMOVABLE MEDIA CONTROLS ▪ Control and monitor access to all removable data devices ▪ Limit types and usage of media ▪ Malware scanning of all removable media Source(s): CESG, NIST

SEPTEMBER 2019 - CONFIDENTIAL

SELECTED CYBER THEMES (I) IDENTITY & ACCESS MANAGEMENT – IDENTITY IS THE NEW CONTROL VECTOR IN A ‘ZERO TRUST’ ENVIRONMENT

SELECTED M&A ACTIVITY

Acquired by

$27m

Undisclosed

$2,350m

$500m

Oct 18

Sep 18

Aug 18

Jul 18

DRIVERS & TRENDS ▪ Complex challenge to manage and control access for multiple user categories (customer, employees, partners, etc.) and devices across increasingly hybrid or virtualised application environments ▪ Increasing de-perimeterisation and growing intelligence-driven protection leads to convergence of network security and IAM ▪ Raise of adaptive authentication and behavioural biometrics

SELECTED FUNDRAISING ACTIVITY

USA, Series D, $100m

USA, Series D, $50m

USA, Series E, $103m

China, Series B, $22m

USA, Series D, $100m

USA, Series D, $90m

USA, Series G, $100m

USA, Series B, $20m

USA, Series C, $19m

SELECTED VENDORS

Source(s): Capital IQ, Mergermarket, Pitchbook

SEPTEMBER 2019 - CONFIDENTIAL

SELECTED CYBER THEMES (II) MSSP/MDR – SPECIALIST 24/7 CYBERSECURITY PROTECTION HELPING TO OVERCOME SKILLS SHORTAGE

SELECTED M&A ACTIVITY

Acquired by

Undisclosed

$577m

Undisclosed

$139m

Jun 19

May 19

Jun 18

DRIVERS & TRENDS ▪ Rapidly evolving and fractured cybersecurity vendor landscape is becoming increasingly complex to oversee, implement and manage ▪ Organisations faced with a chronic cybersecurity skills shortage are outsourcing their cybersecurity management to specialised service providers ▪ Investment in upgrading SOC platforms with more autonomous technology (SIEM, SOAR, analytics) to improve functionality and ROIs

SELECTED VENDORS

SELECTED FUNDRAISING ACTIVITY

France, Growth, n.a.

USA, Series B, $82.5m

USA, Series D, $30m

USA, Series C, $40m

USA, Seed, $1.6m

USA, Series B, $9.6m

Source(s): Capital IQ, Mergermarket, Pitchbook

SEPTEMBER 2019 - CONFIDENTIAL

SELECTED CYBER THEMES (III) CYBER AWARENESS TRAINING – STRENGTHENING THE HUMAN FIREWALL

SELECTED M&A ACTIVITY

Acquired by

Undisclosed

$24m

$400m

$225m

Feb 19

Jul18

Feb 18

DRIVERS & TRENDS ▪ 90% of advanced attacks are targeting humans via phishing to exploit the weakest link inside an organisation’s defence ▪ Attacks are becoming increasingly peoplecentric, driven by social engineering ▪ Strengthen vigilance, reduce alert fatigue through awareness training and reduce risk at the end-user level ▪ Real-time breach and attack simulation to consistently validate and train cyber skills

SELECTED VENDORS

SELECTED FUNDRAISING ACTIVITY

USA, PE Growth, $402m

Germany, Seed, n.a.

UK, Seed, $9m

USA, Growth, $2.5m

Israel, Seed, $5m

US, Seed, n.a.

Source(s): Cofense 2019, Capital IQ, Pitchbook

SEPTEMBER 2019 - CONFIDENTIAL

SELECTED CYBER THEMES (IV) IOT SECURITY – ADVANCING ENDPOINT VISIBILITY IN COMPLEX INDUSTRIAL NETWORKS

SELECTED M&A ACTIVITY

Acquired by

Undisclosed

$1,500m

Jun 19

May 19

Nov 18

DRIVERS & TRENDS ▪ IoT endpoints have become a prime target for hackers and the market for IoT specific security solution is predicted to grow at 50% CAGR (2018-2022) ▪ Low security IoT devices present a huge challenge to businesses attempting to deploy and scale their IoT use cases ▪ Identify and manage devices at scale, protect assets and secure communication between siloed systems (IT & OT)

SELECTED FUNDRAISING ACTIVITY

UK, Funding, Conf.

USA, Seed, $12m

Israel, Series B, $32m

USA, Series C, $65m

USA, Series D, $23m

USA, Series F, $15m

Israel, Series E, $200m

USA, Series D, $34m

USA, Series C, $77m

SELECTED VENDORS

Source(s): Technavio 2018, Capital IQ, Pitchbook

SEPTEMBER 2019 - CONFIDENTIAL

PUBLIC MARKET ACTIVITY

PUBLIC MARKET VALUATION OVERVIEW HIGH GROWTH CYBER SECURITY COMPANIES ARE CONSISTENTLY OUTPERFORMING THE MAJOR TECH INDEX

CYBERSECURITY PRICE PERFORMANCE INDEX

TEV / LTM REVENUE MULTIPLES

140%

12.00x

10.00x

110% 101.7%

9.6x

80%

8.00x

50%

6.00x

24.6%

20%

4.2x

4.00x

3.2x

7.6%

-10% Aug 17

Nov 17

Feb 18

May 18

High Growth

Aug 18

Low Growth

HIGH GROWTH COMPARABLES(1)

Nov 18

Feb 19

May 19

NASDAQ Composite

Aug 19

2.00x Aug 17

Nov 17

Feb 18

High Growth

May 18

Aug 18

Low Growth

Nov 18

Feb 19

May 19

Aug 19

NASDAQ Composite

LOW GROWTH COMPARABLES

Source(s): Capital IQ as of 28 August 2019 Note(s): (1) Average revenue growth of 2018-2020E and 2019E-2020E greater than 20%

SEPTEMBER 2019 - CONFIDENTIAL

GROWTH DRIVES PREMIUM VALUATIONS… FAST-GROWING CYBERSECURITY COMPANIES ARE COMMANDING A PREMIUM VALUATION 2018 – 2019E Median: 17% 2019E – 2020E Median: 13%

REVENUE GROWTH 2018 - 2019E Revenue Growth

45%

2019E - 2020E Revenue Growth

39% 33%

30% 31% 31% 29% 26% 24% 24% 25% 24% 23% 24% 23% 23% 23% 21% 21% 20% 21% 18% 19%

18% 20% 12% 17%13% 17% 16%

10%

15% 15% 13%16%

11% 8%

9% 9%

10% 8%

8% 8%

5%6%

5% 4%

2020E Operating profit 55%55%

51% 52%

40% 40%

28% 28%

27%28% 19% 15%

10% 11%

15%18%

3% 8% (2%) (10%)

(8%) (12%)

(6%) (11%)

EV / REVENUE 28.2x

17%

26%

32% 32%

27% 13% 12%

11%

11% 8%

18% 18% 17% 15% 17% 14% 5%

4% 4%

1%2%

46% 38% 38% 39%

12%15% 0% 2%

(0%)

(10%) (15%)

2019 EV / Revenue

28.5x

21.3x

(1%)

20% 18% 19% 16%

2019E Median: 16% 2020E Median: 18%

OPERATING MARGINS 2019E Operating profit

5%8%

2020 EV / Revenue

2019E Median: 5.8x 2020E Median: 4.9x

27.7x 9.6x 9.1x 8.8x 8.7x 7.4x 8.3x 7.0x 7.2x 7.2x 6.8x 7.1x 6.0x 7.6x 7.1x 7.4x 6.0x 5.9x 6.1x 5.8x 5.8x 7.2x 6.0x 6.0x 3.7x 6.4x 4.8x 3.3x 3.7x 3.6x 5.1x 3.4x 3.2x 4.9x 4.4x 4.9x 3.3x 3.2x 3.6x 3.1x 3.4x 3.6x 3.1x 2.0x 1.9x 2.9x 3.3x 3.1x 3.0x 2.8x2.7x 1.6x 1.8x 1.8x 1.5x

Source(s): Capital IQ as of 28 August 2019

SEPTEMBER 2019 - CONFIDENTIAL

…BUT PROFITABILITY BECOMING INCREASINGLY IMPORTANT IN A MATURING SECTOR STRIKING THE RIGHT BALANCE BETWEEN GROWTH AND PROFITABILITY DRIVES PREMIUM VALUATIONS(1) 2019E EV / Revenue 12.00 x

10.00 x Qualys

CyberArk Rapid7

Check Point

8.00 x

R² = 0.3277

Splunk SailPoint

Avast

Proofpoint Tufin Software Technologies

6.00 x

Tenable Fortinet Forescout

4.00 x

Trend Micro

Radware

MobileIron

Palo Alto Networks

secunet

Sophos 2.00 x

F5 Networks

BlackBerry

FireEye NCC Group

F-Secure

SecureWorks

0.00 x 0%

10%

20%

30%

40%

50%

60% 70% 2019E Revenue Growth + Operating Margins

Source(s): Capital IQ as of 28 August 2019 Note(s): (1) Peer group valuations cut-off at 14x EV/Revenue; (2) Size of the bubble indicates USD market cap; (3) Carbon Black and Symantec are currently under offer and have been removed from the analysis

SEPTEMBER 2019 - CONFIDENTIAL

PUBLIC COMPARABLES OVERVIEW VALUATION SUMMARY(1) USD millions, except per share data Company

Enterprise Value Multiples Vertical

Price

% of 52

Market

Net

Enterprise

Revenue

(27-Aug-19)

Week High

Cap

Debt

Value

FY 2018A

FY 2019E

FY 2020E

FY 2018A

FY 2019E

EBITDA FY 2020E

2017-18A

Revenue Growth 2018-19E

2019-20E

EBITDA Margin FY 2018A

FY 2019E

FY 2020E

High growth Zscaler

Network

Okta

IAM

71.46

79.8%

10,035

(353)

9,683

41.05 x

28.24 x

21.26 x

n.m.

54.6%

45.4%

32.8%

0.5%

9.9%

11.1%

135.07

95.2%

15,417

(112)

15,304

39.51 x

28.52 x

21.69 x

n.m.

55.8%

38.5%

31.5%

(29.8%)

(10.3%)

Rapid7

(2.2%)

Vulnerability Analytics

54.09

81.9%

2,804

2,816

11.54 x

8.80 x

7.13 x

n.m.

21.5%

31.1%

23.4%

(16.8%)

3.4%

7.5%

Tenable

Vulnerability Analytics

21.79

55.3%

2,380

(286)

2,094

7.83 x

6.01 x

4.83 x

n.m.

42.4%

30.4%

24.3%

(25.1%)

(12.2%)

(7.7%)

Splunk

Vulnerability Analytics

112.97

78.6%

17,007

(711)

16,296

9.25 x

7.18 x

5.91 x

n.m.

48.2 x

31.3 x

37.8%

28.8%

21.4%

(10.7%)

14.9%

18.9%

Tufin Software Technologies

Network

17.36

55.9%

668

(11)

658

7.74 x

6.13 x

4.95 x

n.m.

31.7%

26.2%

24.0%

(1.1%)

(11.1%)

(6.4%)

Forescout

Network

33.94

73.1%

1,702

(63)

1,639

5.51 x

4.41 x

3.65 x

n.m.

32.6%

24.9%

20.8%

(21.2%)

(1.3%)

4.5%

Palo Alto Networks

Cloud Security

202.08

77.5%

19,599

(1,475)

18,124

7.16 x

5.79 x

4.90 x

55.4 x

21.5 x

17.7 x

28.3%

23.6%

18.3%

12.9%

26.9%

27.7%

Mimecast

Messaging

43.33

79.4%

2,799

2,850

8.89 x

7.21 x

5.96 x

n.m.

47.0 x

32.4 x

32.0%

23.3%

20.9%

8.3%

15.3%

18.4%

CyberArk

IAM

111.90

75.2%

4,320

(499)

3,821

11.13 x

9.06 x

7.63 x

66.3 x

32.5 x

27.6 x

31.1%

22.9%

18.7%

16.8%

27.9%

27.7%

Proofpoint

Messaging

112.40

84.6%

6,407

(126)

6,282

8.76 x

7.14 x

5.96 x

n.m.

43.3 x

32.6 x

38.0%

22.8%

19.8%

(3.9%)

16.5%

18.3%

Median

8.89 x

7.18 x

5.96 x

60.9 x

43.3 x

31.3 x

32.6%

26.2%

21.4%

(3.9%)

9.9%

11.1%

Mean

14.40 x

10.77 x

8.53 x

60.9 x

38.5 x

28.3 x

36.9%

28.9%

23.3%

(6.4%)

7.3%

10.7%

Low growth secunet

Cybersecurity services

127.01

88.8%

822

(2)

820

4.53 x

3.65 x

3.32 x

25.7 x

19.1 x

16.4 x

3.1%

24.0%

9.9%

17.6%

19.1%

20.2%

BlackBerry

Endpoint

6.75

57.8%

3,722

(21)

3,701

4.07 x

3.39 x

3.02 x

35.5 x

30.6 x

18.0 x

(8.7%)

20.2%

12.3%

11.5%

11.1%

16.8%

Fortinet

Network

80.86

83.4%

13,962

(1,793)

12,170

6.76 x

5.76 x

5.07 x

42.4 x

21.8 x

18.8 x

20.5%

17.3%

13.5%

15.9%

26.4%

27.0%

Carbon Black

Vulnerability Analytics

26.11

99.5%

2,259

(131)

2,128

10.15 x

8.71 x

7.40 x

n.m.

30.4%

16.5%

17.7%

(30.2%)

(14.8%)

(9.9%)

F-Secure

Endpoint

2.86

74.7%

451

2.24 x

1.93 x

1.78 x

48.8 x

16.3 x

13.6 x

12.4%

16.1%

8.6%

4.6%

11.9%

13.1%

Qualys

Vulnerability Analytics

80.83

83.2%

3,340

(259)

3,080

11.05 x

9.57 x

8.29 x

38.9 x

23.9 x

20.7 x

20.8%

15.4%

28.4%

40.0%

40.1%

SailPoint

IAM

21.98

63.5%

2,002

(51)

1,951

7.84 x

6.96 x

5.99 x

n.m.

52.4 x

33.8%

12.6%

16.3%

8.7%

8.4%

11.4%

MobileIron

Endpoint

6.83

92.0%

758

(83)

675

3.49 x

3.22 x

2.91 x

n.m.

56.8 x

7.5%

8.5%

10.8%

(20.0%)

(0.5%)

5.1%

NCC Group

Cybersecurity services

2.19

79.2%

616

641

2.14 x

1.97 x

1.80 x

13.7 x

11.9 x

10.0 x

7.8%

8.8%

9.4%

15.6%

16.6%

18.0%

Radware

Network

24.48

87.0%

1,186

(234)

953

4.06 x

3.75 x

3.42 x

53.3 x

25.1 x

19.4 x

10.9%

8.4%

9.5%

7.6%

15.0%

17.6%

Sophos

Endpoint

4.78

71.4%

2,358

128

2,486

3.59 x

3.32 x

3.07 x

37.2 x

24.6 x

18.5 x

13.2%

8.1%

9.7%

13.5%

16.6%

Avast

Endpoint

4.72

96.1%

4,832

1,096

5,928

7.33 x

6.81 x

6.38 x

17.8 x

12.2 x

11.5 x

23.8%

7.7%

6.7%

41.2%

55.7%

55.5%

SecureWorks

Cybersecurity services

11.18

44.9%

911

831

1.63 x

1.55 x

1.46 x

n.m.

10.4%

5.1%

6.5%

(2.1%)

0.2%

2.0%

FireEye

Cloud Security

13.33

64.7%

2,821

2,913

3.51 x

3.34 x

3.09 x

n.m.

28.2 x

20.1 x

6.6%

4.9%

8.0%

(12.8%)

11.9%

15.4%

Trend Micro

Cloud Security

47.44

66.3%

6,607

(1,512)

5,095

3.36 x

3.23 x

3.07 x

10.4 x

10.1 x

9.5 x

7.8%

4.0%

5.3%

32.3%

32.1%

32.3%

Check Point

Network

106.72

80.4%

16,345

(1,615)

14,730

7.69 x

7.39 x

7.16 x

15.8 x

14.4 x

13.8 x

3.3%

4.1%

3.1%

48.6%

51.5%

51.9%

F5 Networks

Network

122.07

61.1%

7,340

(986)

6,354

2.92 x

2.82 x

2.71 x

8.9 x

7.3 x

7.2 x

3.4%

3.5%

4.0%

32.6%

38.4%

37.7%

Symantec

Cloud Security

23.07

88.5%

14,441

17,413

3.66 x

3.61 x

3.55 x

18.0 x

9.3 x

7.8 x

2.7%

1.3%

1.8%

20.3%

38.9%

45.6%

Median

3.86 x

3.50 x

3.21 x

25.7 x

17.7 x

17.2 x

9.1%

8.4%

9.0%

13.5%

15.8%

17.8%

Mean

5.03 x

4.55 x

4.13 x

28.4 x

18.1 x

19.9 x

12.2%

9.5%

9.2%

12.5%

20.9%

23.3%

High and Low growth comparables Median Mean

7.16 x 8.56 x

5.79 x 6.88 x

4.90 x 5.77 x

35.5 x 32.6 x

21.8 x 23.5 x

18.5 x 21.7 x

20.8% 21.2%

16.5% 17.4%

13.5% 14.6%

8.3% 5.5%

14.9% 15.7%

17.6% 18.4%

(80) 92

2,972

474

UK Small Caps Shearwater Group

Vulnerability Analytics

0.02

47.6%

2.54 x

1.26 x

1.02 x

n.m.

36.6 x

11.5 x

309.2%

100.9%

23.7%

(19.1%)

3.5%

8.9%

Osirium Technologies

Endpoint

0.69

36.5%

(3)

6.58 x

4.94 x

3.18 x

n.m.

47.9%

33.2%

55.6%

(274.8%)

(130.6%)

(57.8%)

Intercede Group

Network

0.41

75.5%

5.5%

1.85 x

1.70 x

6.66 x

n.m.

38.4 x

n.m.

10.1%

9.1%

(74.5%)

(9.3%)

4.4%

Median

2.54 x

1.70 x

3.18 x

n.m

37.5 x

11.5 x

47.9%

33.2%

23.7%

-19.1%

3.5%

5.5%

Mean

1.85 x

1.70 x

6.66 x

n.m.

38.4 x

n.m.

10.1%

9.1%

(74.5%)

(9.3%)

4.4%

5.5%

Source(s): Capital IQ as of 28 August 2019 Note(s): (1) High growth comparables comprise of companies with average 18-20E revenue growth greater than 20%; (2) Carbon Black and Symantec are currently under offer

SEPTEMBER 2019 - CONFIDENTIAL

M&A & CAPITAL RAISING ACTIVITY

M&A ACTIVITY - SNAPSHOT TRANSACTION ACTIVITY CONTINUES TO THRIVE ON BOTH SIDES OF THE ATLANTIC

US HQ’d Cybersecurity transactions – Key Stats

US Cybersecurity - Deal Count and Deal Size

2018 – 2019YTD

Q1 2018 – Q3 2019YTD 57

255

$410m 18

Deals

PE acquirer deals

Median Deal size (2019 YTD)

8 39

$45.8bn

$10.7bn

Cumulative deal value

Largest deal(1)

$11.8bn

$9.0bn

$5.9bn Q1 2018

Q3 2018

# of deals - Strategic Acquirers

Q4 2018

Q1 2019

European Cybersecurity - Deal Count and Deal Size Q1 2018 – Q3 2019YTD

$35m

PE acquirer deals

Median Deal size (2019 YTD)

$5.6bn

Cumulative deal value

Largest deal(2)

Q3 2019YTD

23 15

11 5 18

$8.5bn

Q2 2019

Deal value

Total

Deals

$5.1bn

# of deals - Private Equity

2018 – 2019YTD

$4.3bn 16

$2.9bn

Q2 2018

27 $6.9bn 23

European HQ’d Cybersecurity transactions – Key Stats

135

Q2 2018

Q3 2018

Q4 2018

Q1 2019

# of deals - Strategic Acquirers

Q1 2018

16 10

# of deals - Private Equity

Q2 2019

Q3 2019YTD

Deal value

Total

Source(s): ICON Analysis, Pitchbook, Capital IQ Note(s): (1) Apr 18: Acquisition of Enterprise Security assets Of Symantec Corporation by Broadcom; (2) Apr 19: Acquisition of Gemalto by Thales

SEPTEMBER 2019 - CONFIDENTIAL

PRECEDENT M&A TRANSACTIONS OVERVIEW (1/4) JULY 2018 â&#x20AC;&#x201C; 2019YTD Date announced

Acquirer

Target

Target company description

EV / Revenue

EV / EBITDA

22 Aug 2019

VMwa re, Inc.

Ca rbon Bl a ck, Inc.

Cl oud-na ti ve s ecuri ty pl a tform tha t ena bl es cus tomers to predi ct, prevent, detect, res pond to, a nd remedi a te cyber-a tta cks before they ca us e a da ma gi ng i nci dent or da ta brea ch

2,139.7

9.3x

n.m.

21 Aug 2019

VMwa re, Inc.

Intri ns i c

Devel ops a n a ppl i ca ti on runti me s ecuri ty technol ogy for s erverl es s computi ng a ppl i ca ti ons

n.a .

21 Aug 2019

Spl unk Inc.

Si gna l Fx, Inc.

Cl oud a ppl i ca ti on moni tori ng s ol uti ons

1,050.0

n.a .

21 Aug 2019

El a s ti c N.V.

Perched, LLC

Provi des educa ti on a nd cons ul ti ng s ervi ces for s ecuri ty a na l yti cs , threa t hunti ng, a nd s ecuri ty opera ti ons

n.a .

20 Aug 2019

Peri meterX, Inc.

Pa geSea l

Devel ops s oftwa re to bl ock ma l wa re on webs i tes . The compa ny's product hel ps to s top popup a ds , hi di ng a ds , a nd redi rects tha t di verts webs i te vi s i tors from the i ntended des ti na ti on webs i te

n.a .

16 Aug 2019

Vmwa re

Veri fl ow

Focus es on network veri fi ca ti on a nd troubl es hooti ng, hel pi ng cus tomers model , a na l yze a nd veri fy thei r hybri d networks to a l l ow IT tea ms to opera te, s ecure a nd res i l i ent networks

n.a .

13 Aug 2019

Ba rra cuda Networks , Inc.

Infi Secure Technol ogi es Pri va te Li mi ted

Web s ecuri ty pl a tform to detect a nd bl ock onl i ne s ecuri ty threa ts . It pl a tform ena bl es onl i ne bus i nes s es to control bot tra ffi c on thei r Webs i tes a nd protects bus i nes s es from va ri ous onl i ne threa ts

n.a .

08 Aug 2019

McAfee LLC

Na noSec Co.

Appl i ca ti on-centri c s ecuri ty s ol uti ons a i med a t protecti ng da ta centre a nd cl oud tra ffi c.

n.a .

08 Aug 2019

TEMASEK Hol di ngs / Ens i gn

D'Crypt

Cryptogra phi c cybers ecuri ty s ol uti ons

72.3

n.a .

08 Aug 2019

Broa dcom Inc.

Enterpri s e Securi ty a s s ets Of Syma ntec Corpora ti on

Provi des cyber s ecuri ty products , s ervi ces , a nd s ol uti ons worl dwi de. It opera tes through two s egments , Enterpri s e Securi ty a nd Cons umer Cyber Sa fety

10,700.0

4.6x

30.6x

05 Aug 2019

Ra zorpa y Softwa re Pri va te Li mi ted

Thi rdWa tch Da ta Pvt Ltd

Devel ops rea l -ti me fra ud detecti on a nd preventi on pl a tform. Its product Mi tra eva l ua tes i n rea l -ti me whether every tra ns a cti on i s fra udul ent or genui ne ba s ed on a trus t s core

n.a .

01 Aug 2019

Everbri dge, Inc.

NC4, Inc.

Devel ops a nd provi des s a fety a nd s ecuri ty s ol uti ons to col l ect, ma na ge, s ha re, a nd di s s emi na te i nforma ti on to reduce cyber threa ts , fi ght cri me, mi ti ga te ri s ks , ma na ge i nci dents

86.8

n.a .

01 Aug 2019

Pers pecta Inc.

Kni ght Poi nt Sys tems , LLC

Provi des IT s ervi ces a nd s ol uti ons to federa l a nd commerci a l cl i ents tha t i ncl ude progra m ma na gement, cyber s ecuri ty, cl oud computi ng, a ppl i ca ti on devel opment, i nfra s tructure s ervi ces , a nd s ervi ce des k ma na gement

250.0

n.a .

01 Aug 2019

GoSecure, Inc.

EdgeWa ve, Inc.

Devel ops a nd ma rkets on dema nd, on-premi s es , a nd hybri d s ecure content ma na gement s ol uti ons

n.a .

31 Jul 2019

JAMF Softwa re, LLC

Di gi ta Securi ty LLC

Devel oper of enterpri s e-gra de, purpos e-bui l t endpoi nt protecti on s ol uti ons des i gned to protect Ma c us ers from ma l i ci ous a cti vi ti es a nd threa ts

n.a .

Source(s): ICON Analysis, Capital IQ, 451 Research

SEPTEMBER 2019 - CONFIDENTIAL

PRECEDENT M&A TRANSACTIONS OVERVIEW (2/4) JULY 2018 â&#x20AC;&#x201C; 2019YTD Date announced

Acquirer

Target

Target company description

EV / Revenue

EV / EBITDA

29 Jul 2019

Mi cros oft Corpora ti on

Bl ueTa l on, Inc.

Devel ops a nd opera tes da ta col l a bora ti on a nd da ta uni fi ca ti on technol ogy pl a tform a nd s ol uti ons . It devel ops a nd ma i nta i ns Bl ueTa l on Vi rtua l Da ta ba s e, a cl oud-ba s ed vi rtua l da ta ba s e

n.a .

24 Jul 2019

Equi s tone Pa rtners Europe

Hera s

Provi des mobi l e a nd perma nent peri meter protecti on s ys tems a nd products i ncl udi ng fenci ng s ys tems , ma nua l a nd a utoma ted ga tes , hos ti l e vehi cl e mi ti ga ti on ba rri ers a nd el ectroni c peri meter detecti on products

n.a .

19 Jul 2019

Qua drum Ca pi ta l BV; Qua drum Inves tment Fund II

Da ta Expert BV

Devel ops s oftwa re for cyber-cri me preventi on a nd da ta s ecuri ty. Its products i ncl ude a na l yti ca l s oftwa re, cyber s ecuri ty s ol uti ons , di gi ta l forens i cs s ol uti ons , mobi l e forens i cs , a nd cl oud forens i cs s oftwa re

n.a .

18 Jul 2019

Workda y, Inc.

Trus ted Key Sol uti ons Inc.

Devel ops bl ockcha i n ba s ed s ecure di gi ta l i denti ty s ol uti ons . Its pl a tform protects the pri va cy of cons umer da ta a nd a l l ows enterpri s es to veri fy the cus tomers tha t they cl a i m to be

n.a .

10 Jul 2019

Bra es Ca pi ta l LLC

Si ege Technol ogi es , LLC

Provi des defens i ve cyber s ecuri ty s ol uti ons for pri va te a nd government s ectors i n the Uni ted Sta tes . Its portfol i o i ncl udes Hypervi s or des i gned for enha nced CNO, s ecuri ty, a nd a dva nced res ea rch ca pa bi l i ti es ; Ha uberk, a s oftwa re protecti on s ui te for cri ti ca l a ppl i ca ti ons

n.a .

09 Jul 2019

TA As s oci a tes , Cl ea rl a ke Ca pi ta l

Di gi Cert, Inc.

Provi des SSL certi fi ca tes a nd SSL ma na gement tool s for s ma l l a nd l a rge compa ni es . It offers s ta nda rd SSL certi fi ca tes (s i ngl e na me), extended va l i da ti on (EV) certi fi ca tes , uni fi ed communi ca ti ons (UC or SANS) certi fi ca tes , etc.

n.a .

09 Jul 2019

AppLovi n Corpora ti on

Sa feDK Mobi l e LTD

Offers a n i nfra s tructure s ol uti on, whi ch i mproves mobi l e a pps ' s ecuri ty, s ta bi l i ty a nd QoS, by moni tori ng a nd control l i ng 3rd pa rty tool s i ntegra ted i n the a pps

n.a .

02 Jul 2019

Certi fi ed Securi ty Sol uti ons , Inc. Evol i um Technol ogi es S.L.U

Des i gns a nd devel ops di gi ta l i denti ti es ma na gement s oftwa re s ol uti ons

n.a .

02 Jul 2019

Exa bea m, Inc.

Devel ops a ppl i ca ti on, whi ch provi des vi s i bi l i ty of threa ts a nd compl i a nce ri s ks

n.a .

02 Jul 2019

Certi fi ed Securi ty Sol uti ons , Inc. Evol i um Technol ogi es S.L.U

Des i gns a nd devel ops di gi ta l i denti ti es ma na gement s oftwa re s ol uti ons

n.a .

17 Jun 2019

Accenture pl c

Deja vu Securi ty, LLC

Offers cybers ecuri ty res ea rch a nd cons ul ti ng s ervi ces . the Compa ny s peci a l i s es i n s ecuri ty des i gn a nd tes ti ng of enterpri s e s oftwa re pl a tforms a nd i nternet of thi ngs (IoT) technol ogi es .

n.a .

13 Jun 2019

CACI Li mi ted

Mood Enterpri s es Li mi ted

MooD Enterpri s es provi des s oftwa re a nd ma na ged s ervi ces to defence, na ti ona l s ecuri ty a nd commerci a l orga ni s a ti ons

n.a .

07 Jun 2019

SmoothWa l l Ltd.

Sa feGua rd Softwa re Li mi ted

Devel ops di gi ta l record keepi ng s a fegua rdi ng s oftwa re for s chool s , mul ti a ca demy trus ts , l oca l a uthori ti es a nd other orga ni za ti ons

n.a .

06 Jun 2019

Ci s co Sys tems , Inc.

Sentryo SAS

Provi des cybers ecuri ty a nd s i tua ti ona l a wa renes s s ol uti ons . Its s ol uti ons ena bl e corpora ti ons to ens ure conti nui ty, res i l i ence a nd s a fety of i ndus tri a l opera ti ons by provi di ng conti nuous vi s i bi l i ty over ICS a nd SCADA i nfra s tructures .

n.a .

05 Jun 2019

El a s ti c N.V.

Endga me, Inc.

Provi des s ecuri ty i ntel l i gence a nd a na l yti cs s ol uti ons for federa l a nd commerci a l cus tomers /enterpri s es to gi ve them rea l -ti me vi s i bi l i ty a nd a cti ona bl e i ns i ght a cros s thei r di gi ta l doma i ns

234.0

11.8x

n.a .

SkyForma ti on Ltd.

Source(s): ICON Analysis, Capital IQ, 451 Research

SEPTEMBER 2019 - CONFIDENTIAL

PRECEDENT M&A TRANSACTIONS OVERVIEW (3/4) JULY 2018 â&#x20AC;&#x201C; 2019YTD Date announced

Acquirer

Target

Target company description

EV / Revenue

EV / EBITDA

04 Jun 2019

Imperva , Inc.

Di s ti l Networks , Inc.

Provi des publ i c a nd pri va te cl oud s ecuri ty s oftwa re tha t bl ocks ma l i ci ous bots a nd a utoma ted computer progra ms a tta cki ng webs i tes

100.0

5.0x

n.a .

03 Jun 2019

Sophos Group pl c

Rook Securi ty, LLC

Offers ma na ged di gi ta l detecti on a nd res pons e s ervi ces . Further, the compa ny offers Force whi ch i s a s ecuri ty opera ti ons ma na gement pl a tform tha t opti mi zes s ecuri ty res ource workfl ows , metri cs , a nd outcomes ; a nd di gi ta l s ecuri ty cons ul ti ng a nd a dvi s ory s ervi ces , etc.

n.a .

30 Ma y 2019

Ins i ght Venture Pa rtners LLC

Recorded Future, Inc.

Provi des rea l -ti me threa t i ntel l i gence s ol uti ons to compa ni es a nd s ecuri ty profes s i ona l s

780.0

12.0x

n.a .

29 Ma y 2019

Pa l o Al to Networks , Inc.

Twi s tl ock Inc.

Provi des docker conta i ner s ecuri ty s ol uti ons for DevOps wi th s ea ml es s CI i ntegra ti on, API s upport, a nd a s ecuri ty fra mework

410.0

n.a .

28 Ma y 2019

Fi reEye, Inc.

Verodi n, Inc.

Pl a tform to tes t wea knes s es i n compa ny cybers ecuri ty networks , by i denti fyi ng ga ps i n s ecuri ty effecti venes s due to equi pment mi s confi gura ti on, cha nges i n the IT envi ronment, evol vi ng a tta cker ta cti cs

264.0

n.a .

07 Ma y 2019

Ora nge S.A.

SecureLi nk nv

Cybers ecuri ty s ervi ces provi der, pl a ns , bui l ds , a nd ma na ges cl i ents â&#x20AC;&#x2122; network a nd cybers ecuri ty i nfra s tructures

576.0

2.1x

n.a .

06 Ma y 2019

Proofpoi nt, Inc.

Meta Networks Ltd.

Devel ops cl oud na ti ve networki ng a nd s ecuri ty s ol uti ons for enterpri s es

120.0

n.a .

09 Apr 2019

Shea rwa ter Group PLC

Certa i n Bus i nes s And As s ets of Seca rma Li mi ted

Bus i nes s uni t tha t provi des cyber threa t a na l yti cs a nd moni tori ng s ervi ces

9.7

2.0x

n.a .

28 Ma r 2019

Ni xu Oyj

Ezenta A/S

Provi des i nforma ti on technol ogy cons ul ti ng s ervi ces s uch a s IT s ecuri ty, cons ul ti ng, a nd a dvi ce

9.1

0.9x

n.a .

22 Ma r 2019

NSEIT Ltd.

Auja s Networks Pvt. Ltd.

Provi des cyber s ecuri ty s ervi ces to ba nki ng, i ns ura nce, reta i l , energy, communi ca ti ons , a nd technol ogy i ndus tri es i n North Ameri ca , South As i a , a nd the Mi ddl e Ea s t

n.a .

18 Ma r 2019

Ni xu Oyj

Cybers ecuri ty bus i nes s of Ves per Group

Appl i ca ti on devel opment s ervi ces provi der for fi na nci a l s ervi ces compa ni es

1.8

1.0x

n.a .

12 Ma r 2019

SecureSky, Inc.

EvengX, LLC

Devel ops a nd provi des Sa fetyNet, a n a gent-ba s ed a nd network technol ogy tha t offers cros s pl a tform technol ogy a nd defence ca pa bi l i ti es a ga i ns t threa ts a nd ma l i ci ous beha vi ours

n.a .

05 Ma r 2019

NTT Securi ty Corpora ti on

Whi teHa t Securi ty, Inc.

Opera tes a Softwa re-a s -a -Servi ce (Sa a S) pl a tform. Its pl a tform ena bl es enterpri s es to s ecure thei r di gi ta l bus i nes s es ra ngi ng from a ppl i ca ti on crea ti on through producti on, a nd from the des ktop to mobi l e devi ce

315.0

5.3x

n.a .

01 Ma r 2019

Comca s t Corpora ti on

Bl uVector, Inc.

Opera tes a cyber-threa t detecti on a nd hunti ng pl a tform tha t defends enterpri s es a ga i ns t evol vi ng s ecuri ty threa ts

n.a .

01 Ma r 2019

Veri zon Communi ca ti ons Inc.

ProtectWi s e, Inc.

Offers cl oud-ba s ed network s ecuri ty s ervi ces

n.a .

Source(s): ICON Analysis, Capital IQ, 451 Research

SEPTEMBER 2019 - CONFIDENTIAL

PRECEDENT M&A TRANSACTIONS OVERVIEW (4/4) JULY 2018 â&#x20AC;&#x201C; 2019YTD Date announced

Acquirer

Target

Target company description

EV / Revenue

EV / EBITDA

25 Feb 2019

Thoma Bra vo, LLC

ConnectWi s e, Inc.

Provi des profes s i ona l s ervi ces a utoma ti on s ol uti ons for s ma l l a nd mi d-s i zed compa ni es

n.a .

22 Feb 2019

Entrus t Da ta ca rd Corpora ti on

nCi pher Securi ty Li mi ted

Des i gns a nd devel ops cryptogra phi c a nd s ecuri ty s ol uti ons for genera l purpos e ha rdwa re, cl oud, bl ockcha i n, a nd di gi ta l pa yments a ppl i ca ti ons

n.a .

19 Feb 2019

Pa l o Al to Networks , Inc.

Demi s to, Inc.

Opera tes a s ecuri ty orches tra ti on, a utoma ti on, a nd res pons e pl a tform tha t combi nes orches tra ti on, i nci dent ma na gement, a nd i ntera cti ve i nves ti ga ti on i nto a s ea ml es s experi ence

464.5

n.a .

15 Feb 2019

Mi cro Focus Interna ti ona l pl c

Inters et Inc.

Is a n enterpri s e threa t detecti on compa ny whi ch provi des beha vi oura l -centri c s ecuri ty s ol uti ons

100.0

14.3x

n.a .

14 Feb 2019

Li mehous e Agenci es Li mi ted

Decyber Li mi ted

Offers cyber a wa renes s tra i ni ng, Internet s ecuri ty/a nti -vi rus , cyber i ns ura nce, da rk web moni tori ng, a nd other cyber s ecuri ty protecti on s ervi ces

n.a .

12 Feb 2019

Syma ntec Corpora ti on

Lumi na te Securi ty Ltd.

Opera tes s oftwa re-a s -a -s ervi ce (Sa a S) s ecuri ty pl a tform whi ch a l l ows us ers to s ecurel y ma na ge a cces s to a l l corpora te res ources from a ny devi ce

139.0

n.a .

11 Feb 2019

Qua l ys , Inc.

Adya Inc.

Provi des cl oud a ppl i ca ti ons ma na gement tha t ena bl e enterpri s es to ma na ge a nd s ecure thei r Sa a S a ppl i ca ti ons from a s i ngl e cons ol e

1.8

n.a .

07 Feb 2019

Ca rboni te, Inc.

Webroot Inc.

Provi des cl oud-ba s ed Internet threa t detecti on s ol uti ons for cons umers , bus i nes s es , a nd enterpri s es

618.5

2.9x

n.a .

07 Feb 2019

Ha ven Cyber Technol ogi es

Onevi nn AB

Des i gns a nd devel ops cyber s ecuri ty s ol uti ons

n.a .

06 Feb 2019

Hel pSys tems , LLC

Core Securi ty As s ets of SecureAuth Corpora ti on

Core Securi ty As s ets of SecureAuth Corpora ti on wa s a cqui red by Hel pSys tems , LLC. Core Securi ty As s ets of Core Securi ty Sol uti ons , Inc. compri s es s ecuri ty devi ce equi pment

n.a .

01 Feb 2019

Ora nge S.A.

SecureDa ta Europe Li mi ted

Offers SecureDa ta GI, a n i ntegra ted s ecuri ty pl a tform tha t i s hos ted a nd ma na ged i n the cl oud

157.0

2.7x

n.a .

31 Ja n 2019

Ba ffi n Ba y Networks AB

Loryka

Provi des da ta s ecuri ty s ol uti ons

n.a .

29 Ja n 2019

Sophos Group pl c

Da rkBytes , Inc.

Devel ops a uni fi ed endpoi nt protecti on pl a tform whi ch offers cyber s ecuri ty s ervi ces to commerci a l orga ni za ti ons

n.a .

16 Ja n 2019

Ona ps i s Inc.

Vi rtua l Forge GmbH

Provi des cyber s ecuri ty s oftwa re s ol uti ons for s ys tems a ppl i ca ti ons a nd products (SAP)

n.a .

15 Ja n 2019

Zi x Corpora ti on

AppRi ver, LLC

Provi des cl oud-ba s ed ema i l a nd cyber s ecuri ty s ol uti ons to bus i nes s es worl dwi de

268.5

3.0x

n.a .

Source(s): ICON Analysis, Capital IQ, 451 Research

SEPTEMBER 2019 - CONFIDENTIAL

PRECEDENT M&A TRANSACTIONS OVERVIEW (4/4) JULY 2018 – 2019YTD Date announced

Acquirer

Target

Target company description

EV / Revenue

EV / EBITDA

14 Ja n 2019

Check Poi nt Softwa re Technol ogi es Ltd.

ForceNock Securi ty Ltd.

Des i gns a nd devel ops a ma chi ne l ea rni ng ba s ed web a ppl i ca ti on s ecuri ty s oftwa re

n.a .

08 Ja n 2019

Sophos Group pl c

Avi d Secure, Inc.

Devel ops cl oud i nfra s tructure s ecuri ty pl a tform to del i ver s ecuri ty a na l yti cs , compl i a nce a utoma ti on, a nd rugged DevSecOps

n.a .

21 Dec 2018

Bechtl e AG

R.Bücker EDV-Bera tung Da tentechni k GmbH

Provi des i nforma ti on technol ogy cons ul ti ng a nd s ecuri ty s ervi ces

n.a .

05 Dec 2018

Ins i de Secure S.A. (nka :Veri ma tri x Soci été a nonyme)

Veri ma tri x, Inc.

Speci a l i s es i n s ecuri ng a nd enha nci ng revenue for mul ti -network/mul ti -s creen di gi ta l TV s ervi ces a round the gl obe

155.9

2.0x

10.8x

29 Nov 2018

Neus ta r, Inc.

TRUSTID, Inc.

Provi des Softwa re-a s -a -Servi ce ba s ed phone owners hi p a uthenti ca ti on s ol uti ons for ca l l centres

n.a .

16 Nov 2018

Bl a ckBerry Li mi ted

Cyl a nce Inc.

Devel ops a rti fi ci a l i ntel l i gence ba s ed preventi on-fi rs t a nd predi cti ve s ecuri ty s ol uti ons

1,500.0

11.5x

n.a .

08 Nov 2018

Fores cout Technol ogi es , Inc.

Securi tyMa tters B.V.

Provi des cyber s ecuri ty s ol uti ons to cri ti ca l i nfra s tructure a nd i ndus tri a l a utoma ti on compa ni es

113.3

14.2x

n.a .

08 Nov 2018

IK Inves tment Pa rtners ; IK VIII

Infra da ta Group B.V.

Provi des cyber s ecuri ty a nd cl oud networki ng s ol uti ons

n.a .

05 Nov 2018

Thoma Bra vo, LLC

Vera code, Inc.

Devel ops Sa a S pl a tform a nd i ntegra ted s ol uti ons tha t hel p s ecuri ty tea ms a nd s oftwa re devel opers to fi nd a nd fi x s ecuri ty-rel a ted defects i n s oftwa re devel opment l i fecycl e

950.0

7.6x

n.a .

30 Oct 2018

Gro Ca pi ta l A/S; CVC Ca pi ta l Pa rtners SICAV-FIS S.A; CVC Growth Pa rtners

Oma da A/S

Provi des i denti ty a nd a cces s ma na gement, a nd i denti ty a nd a cces s governa nce s ol uti ons

140.0

4.7x

n.a .

23 Oct 2018

Forti net, Inc.

Zonefox Li mi ted

Provi des s ecuri ty s oftwa re to protect bus i nes s -cri ti ca l a s s ets , da ta , a nd i ntel l ectua l property

18.0

n.a .

22 Oct 2018

GB Group pl c

Vi x Veri fy Gl oba l Pty Ltd

Offers i denti ty veri fi ca ti on a nd l oca ti on i ntel l i gence s oftwa re

27.1

1.7x

n.a .

16 Oct 2018

Tema s ek Hol di ngs (Pri va te) Li mi ted

Sygni a Cons ul ti ng Ltd.

Opera tes a s a cyber technol ogy a nd s ervi ces compa ny, provi di ng cons ul ti ng a nd i nci dent res pons e s upport for orga ni za ti ons worl dwi de

n.a .

10 Oct 2018

Thoma Bra vo, LLC

Imperva , Inc.

Enga ges i n the devel opment, ma rket, s a l e, a nd s upport of cyber s ecuri ty s ol uti ons tha t protect bus i nes s cri ti ca l da ta a nd a ppl i ca ti ons i n the cl oud or on premi s es worl dwi de

1,814.7

5.7x

n.m.

03 Oct 2018

Pa l o Al to Networks , Inc.

RedLock, Inc.

Devel ops i nternet s ecuri ty s oftwa re

173.0

n.a .

Source(s): ICON Analysis, Capital IQ, 451 Research

SEPTEMBER 2019 - CONFIDENTIAL

PRECEDENT M&A TRANSACTIONS OVERVIEW (4/4) JULY 2018 â&#x20AC;&#x201C; 2019YTD Date announced

Acquirer

Target

Target company description

EV / Revenue

EV / EBITDA

13 Sep 2018

Bomga r Corpora tion

BeyondTrus t Softwa re, Inc.

Devel ops a nd offers pri vi l eged a cces s ma na gement s oftwa re s ol utions to prevent da ta brea ches rel a ted to s tol en credentia l s , mi s us ed pri vi l eges , a nd compromi s ed remote a cces s

750.0

6.8x

18.8x

20 Aug 2018

Si x Degrees Technol ogy Group Ltd

Convergent Network Sol utions Li mi ted

Provi des IT s ecuri ty a nd networki ng cons ul tancy s ervi ces . The compa ny opera tes i n three di vi s i ons : Network a nd Securi ty Sol utions , Securi ty As s es s ment, a nd Ma na ged Servi ces .

n.a.

17 Aug 2018

Shea rwa ter Group PLC

Brookcourt Sol utions Li mi ted

Sel l s , i mpl ements , i ntegra tes , a nd s upports cyber s ecuri ty a nd networki ng technol ogi es to bus i nes s s ectors

39.5

1.4x

15.1x

16 Aug 2018

Cyberfort Softwa re, Inc.

Jus t Content Softwa re

Provi des a n a d bl ocki ng a ppl i ca tion tha t protects fa mi l i es a nd bus i nes s es a ga i ns t uns a fe l i nks , a dul t contents , phi s hi ng s i tes , i nfl a mma tory ha te s peeches , ba ckdoor a tta cks , a nd cyber threa ts

n.a.

02 Aug 2018

Ci s co Sys tems , Inc.

Duo Securi ty, Inc.

Provi des uni fi ed a cces s s ecuri ty a nd mul ti-fa ctor a uthentica tion s ol utions for cus tomers worl dwi de

2,350.0

18.8x

n.a.

10 Jul 2018

AT&T Communi ca tions , LLC

Al i enVa ul t, Inc.

Provi des uni fi ed s ecuri ty ma na gement a nd crowd-s ourced threa t i ntel l i gence s ol utions

600.0

6.0x

n.a.

10 Jul 2018

Thoma Bra vo, LLC

Centri fy Corpora tion

Des i gns a nd devel ops uni fi ed i dentity ma na gement s oftwa re for cl oud, mobi l e, a nd da ta centre pl a tforms

500.0

3.3x

n.a.

10 Jul 2018

Bomga r Corpora tion

Avecto Li mi ted

Devel ops endpoi nt s ecuri ty s oftwa re s ol utions tha t protect bus i nes s es from a dva nced threa ts

n.a.

05 Jul 2018

Cl a ra net Li mi ted

NotSoSecure Gl oba l Servi ces Li mi ted

Provi des penetra tion tes ting a nd ha cki ng tra i ni ng s ervi ces

n.a.

Median

5.00x

15.15x

Mean

6.11x

14.88x

Source(s): ICON Analysis, Capital IQ, 451 Research

SEPTEMBER 2019 - CONFIDENTIAL

FUNDING ACTIVITY - SNAPSHOT US IS LEADING THE CHARGE IN CYBERSECURITY FUNDRAISING

US Cybersecurity funding rounds – Key Stats

US Cybersecurity - Deal Count and Amount Invested

2018 – 2019YTD

Q1 2018 – Q3 2019YTD

623

990

Deals

$1,530m

Investors

$1,520m

$1,540m 37

$1,230m $1,100m $595m

$295m

$8.2bn

Q1 2018

$559m

Q2 2018

Q3 2018

Q4 2018

# of deals

Largest

deal(1)

Q1 2019

Q2 2019

Q3 2019YTD

Amount raised

Cumulative deal value

European Cybersecurity transactions – Key Stats

European Cybersecurity - Deal Count and Amount Invested

2018 – 2019YTD

Q1 2018 – Q3 2019YTD

233

312

$246m

Deals

Investors

$154m

$205m

21 $137m

$156m

19 6

$85m

$973m

Largest deal(2)

Cumulative deal value

$43m Q1 2018

Q2 2018

$7m Q3 2018

Q4 2018

# of deals

Q1 2019

Q2 2019

Q3 2019YTD

Amount raised

Source(s): ICON Analysis, Pitchbook Note(s): (1) In Sep 2018, Anchor Free raised $295m from WndrCo, Accel, 8VC, SignalFire, and Green Bay Ventures; (2) In Dec 2018, Nexthink raised $85m from Index Ventures, Auriga Partners, Highland Europe, Galeo-Ventures, and Forestay Capital

SEPTEMBER 2019 - CONFIDENTIAL

MOST ACTIVE CYBERSECURITY EARLY STAGE INVESTORS (1/2) UK IS A HOTBED FOR CYBERSECURITY START-UP FUNDING

TOP 3 SEED INVESTORS Company

Country