2013 q2 quarterly software market review - shea & company

Shea & Company, LLC

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Michael H.M. Shea

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Christopher J. Pingpank

Principal

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Brad E. McCarthy

Vice President

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Michael S. Barker

Managing Director

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Quarterly Enterprise Software Market Review 2Q 2013

Copyright ©2013 Shea & Company, LLC 1

Contents

M&A Activity

Software M&A Summary: 2Q 2013 p. 2

Software Acquisitions: Trend Analysis p. 3

Publicly-Available Software M&A Transaction Data: 2Q 2013 p. 4

Announced Software Acquisitions: 2Q 2013 p. 5

Most Active Software Acquirers: 2007 – 2013 p. 9

Public Equity Market Valuations

Relative Performance by Index p. 17

Price Performance and Valuation Metrics by Segment p. 18

Price Performance and Valuation Metrics of Notable Software Vendors p. 19

Equity Trading Multiples by Growth Tranche p. 20

Equity Trading Multiples by Segment p. 21

Equity Trading Multiples by Comparable Subset p. 27

Public & Private Equity Financing Activity

Software IPOs: Trailing Twelve Months p. 30

Software IPO Pricing & Performance Data p. 31

Software IPO Pipeline p. 32

Software Private Capital Raise Activity: 2Q 2013 p. 33

Copyright © 2013 Shea & Company, LLC 2

M&A Activity Software M&A Summary: 2Q 2013

Notable Announced Transactions: 2Q 2013 ($ millions)

Source: Company releases, Wall Street research

Acquirer

Target

Date 04/22/13 05/06/13 05/06/13 05/20/13 05/28/13 06/04/13 06/24/13 06/27/13

Enterprise Value $155 $6,900 $389 $903 $2,900 $2,399 $395 $600

EV / 2013 Rev n/a 3.1x n/a 2.5x n/a 6.3x 3.2x n/a

EV / 2014 Rev n/a 3.0x n/a 2.4x n/a 5.3x 3.0x n/a

NASDAQ

$1.5

$14.4

$4.4

$9.7

$4.8

$19.5 $19.2

$8.5

$2.5

$9.8

$23.1

$10.1

$6.7

$11.7

$6.3 $7.5

$2.6

$18.4

$-

$10

$20

$30

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2009 2010 2011 2012 2013

An

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$b

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Transaction Count by Deal Size

> $1bn 0 3 1 3 2 6 5 2 0 3 6 4 2 3 3 2 1 3

$500m - $1bn 1 1 1 2 0 4 3 3 0 1 1 1 1 2 0 3 0 5

$250m - $500m 1 0 1 2 1 6 3 3 2 8 4 2 5 3 3 1 0 3

< $250m 16 34 27 23 27 30 26 26 32 25 24 30 26 26 25 28 28 21

No Reported Value 70 51 62 37 79 59 93 45 68 49 47 92 85 94 93 105 103 118

Total 88 89 92 67 109 105 130 79 102 86 82 129 119 128 124 139 132 150


M&A Activity

Software Acquisitions: Trend Analysis

By Transaction Size (2011 – 2013 YTD)

By Target Segment (2011 – 2013 YTD)

Note:

Business Applications includes: ERP & Business Applications; Marketing Applications; Technical & Embedded Applications

Information Management includes: Business Intelligence; Content Management

Infrastructure includes: Application Delivery & Network Acceleration; Platforms, Development Tools & Deployment; Storage Management; Systems & Network Management


111

16

3

13

105

12 6

10

50

3 5 4

0

20

40

60

80

100

120

< $250m $250m - $500m $500m - $1bn > $1bn

# o

f D

ea

ls

Deal Value (Enterprise Value)

2011

2012

2013

$6 $6

$2

$32

$5 $4

$5

$18

$3 $1

$4

$13

$-

$5

$10

$15

$20

$25

$30

$35

< $250m $250m - $500m $500m - $1bn > $1bn

Aggre

ga

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$ b

illio

ns)


2.3x

4.9x

6.5x

3.7x

1.6x

3.5x

5.1x

4.0x

2.5x

7.4x 7.5x

3.1x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

8.0x

< $250m $250m - $500m $500m - $1bn > $1bn

Me

dia

n E

V /

LTM

Re

v


167

49

34

82

53

218

61 68

98

46

82

32

66 70

27

0

50

100

150

200

250

Business

Applications

IT Security Information

Management

Infrastructure Financial

Applications

# o

f D

ea

ls

2011

2012

2013

$22

$2

$13

$3

$5

$20

$2 $1

$5

$2 $3 $2

$1

$8

$5

$-

$5

$10

$15

$20

$25

Business

Applications


Management


Applications

Aggre

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3.7x

2.9x 2.8x

5.2x

2.1x

2.9x

3.8x

1.2x

2.7x

1.8x 1.8x

2.5x

2.9x 3.1x

3.4x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Business

Applications


Management


Applications

Me

dia

n E

V /

LTM

Re

v

Copyright ©2013 Shea & Company, LLC

M&A Activity

Publicly-Available Software M&A Transaction Data: 2Q 2013

4

Note:

Includes only transactions for which data was publicly available

P/E multiples in excess of 100x or less than 0x are considered to be not meaningful


2Q 2013 ($ millions)

Consideration Equity Enterprise EV / Revenue P/E Ratio

Date Target Acquirer % Cash % Stock value value LTM Current yr Fwd yr Current yr Fwd yr

06/27/13 Neolane Adobe 100% - - $600 8.6x - - - -

06/24/13 Keynote Systems Thoma Bravo 100% - $369 $395 3.2x 3.2x 3.0x 32.4x -

06/20/13 Composite Software Cisco Systems 100% - - $180 - - - - -

06/17/13 Panopticon Software AB Datawatch - 100% - $31 - - - - -

06/17/13 Veramark Technologies Hubspoke 100% - - $11 0.7x - - - -

06/04/13 ExactTarget Salesforce.com 100% - $2,500 $2,399 7.5x 6.3x 5.3x nm nm

06/03/13 ISS Group P2 Energy Solutions 100% - - $43 2.0x - - - -

05/29/13 Apriso Dassault Systemes 100% - - $205 4.1x - - - -

05/29/13 JouleX Cisco Systems 100% - - $107 - - - - -

05/28/13 Lender Processing Services Fidelity National Financial 50% 50% - $2,900 1.5x - - - -

05/22/13 Solera Networks Blue Coat Systems 100% - - $225 - - - - -

05/21/13 N-able Technologies SolarWinds 100% - - $120 5.0x - - - -

05/20/13 Websense Vista Equity Partners 100% - - $903 2.5x 2.5x 2.4x - -

05/17/13 StreamOnce Jive Software 77% 23% - $6 - - - - -

05/14/13 BankLink (assets) MYOB Technology Pty - - - $113 - - - - -

05/14/13 FuGen Solutions 8K Miles - - - $8 - - - - -

05/13/13 AsiaInfo-Linkage CITIC Capital & Temasek 100% - - $890 - - - - -

05/08/13 Civica OMERS Capital Partners - - - $607 - - - - -

05/08/13 Epic Data International Sylogist 100% - - $5 - - - - -

05/08/13 Market Leader Trulia 54% 46% $304 $355 7.4x 6.2x 4.7x nm nm

05/07/13 Expert Systems AB ReadSoft AB - - - $6 3.1x - - - -

05/06/13 BMC Software Bain, Golden Gate, GIC & Insight 100% - - $6,900 3.1x 3.1x 3.0x - -

05/06/13 NComVA AB QlikTech 100% - - $8 - - - - -

05/06/13 Stonesoft Oyj Intel 100% - - $389 7.4x - - - -

05/02/13 KSD Software Norway AS Descartes Systems 100% - - $33 - - - - -

05/01/13 CLARA Jive Software 100% - - $7 - - - - -

04/29/13 Arkoon Network Security CASSIDIAN 100% - - $19 1.1x - - - -

04/22/13 Layer 7 Technologies CA Technologies 100% - - $155 - - - - -

04/18/13 Iter8 Quindell Portfolio 100% - - $4 - - - - -

04/11/13 Artesys International SA Idox 100% - - $3 0.8x - - - -

04/02/13 Infoglide Software Fair Isaac 100% - - $7 - - - - -

04/01/13 BGC Partners (assets) NASDAQ OMX 100% - - $750 7.5x - - - -


M&A Activity

Announced Software Acquisitions: 2Q 2013

5


($ millions)

Announced Target Acquirer Target Segment & Description Price

06/27/13 Neolane Adobe Marketing Applications - Marketing automation software and SaaS $600

06/27/13 Noetix Silverback Enterprise Group Business Intelligence - Real-time data visualization and analytics n/a

06/27/13 Visual Analytics Raytheon Business Intelligence - Data visualization and analytics for government sector n/a

06/26/13 Bonaire Software Solutions Broadridge Financial Solutions Financial Applications - Revenue management, fee billing and analytics for the financial sector n/a

06/26/13 Liken Limited (SAM & ITAM divisions) IT Asset Management Solutions Systems & Network Management - Software and IT asset management for businesses in the UK n/a

06/26/13 Motorola Solutions (MSP assets) AirWatch Systems & Network Management - Mobile device provisioning and management n/a

06/25/13 Aruvio Virima Technologies IT Security - Governance, risk and compliance solutions n/a

06/25/13 Palisade Systems (assets) Absolute Software IT Security - Data loss prevention, anti-data leakage and website monitoring SaaS n/a

06/24/13 Adepto Solutions Minjar Cloud Solutions Pvt Platforms, Development Tools & Deployment - Social media application development and distribution SaaS n/a

06/24/13 Keynote Systems Thoma Bravo Platforms, Development Tools & Deployment - Application performance testing and monitoring SaaS $395

06/21/13 afterBOT (PoS reporting assets) Accelerated Analytics Business Intelligence - Point of sale analytics and inventory tracking SaaS n/a

06/21/13 Elastic Intelligence Intuit Platforms, Development Tools & Deployment - Data integration SaaS n/a

06/20/13 Composite Software Cisco Systems Systems & Network Management - Data virtualization, integration and analytics $180

06/20/13 Inventus Clearlake Capital Content Management - eDiscovery document collection, review and processing SaaS n/a

06/20/13 Perlego Systems Fixmo IT Security - Mobile security, file transfer and data protection n/a

06/20/13 Rivo Software Kennet Partners & Fidelity IT Security - Governance, risk and compliance SaaS n/a

06/20/13 xPeerient NET(net) ERP & Business Applications - IT project management SaaS n/a

06/20/13 ZeroVulnerabilityLabs Malwarebytes IT Security - Anti-malware software n/a

06/19/13 Oxial Suisse Phoenix Financial Services IT Security - Governance, risk and compliance software n/a

06/17/13 Panopticon Software AB Datawatch Business Intelligence - Real-time data visualization and analytics $31

06/17/13 Trendset AFS Logistics ERP & Business Applications - Freight audit, payment and logistics analysis SaaS n/a

06/17/13 Veramark Technologies Hubspoke ERP & Business Applications - Telecom expense management $11

06/14/13 AppFog CenturyLink Platforms, Development Tools & Deployment - Platform as a service for web-based applications n/a

06/14/13 Sarla Analytics Invensys Platforms, Development Tools & Deployment - Mobile database reporting n/a

06/13/13 Apama Software AG Business Intelligence - Complex event processing for the financial services sector n/a

06/13/13 TortoiseSVN.net WANdisco Systems & Network Management - Open source control software for Windows n/a

06/12/13 Advanced Productivity Software IntApp ERP & Business Applications - Workforce management SaaS for the legal sector n/a

06/12/13 Bitdeli AdRoll Business Intelligence - Data analytics and visualization SaaS n/a

06/12/13 HR Services Paychex ERP & Business Applications - Talent acquisition SaaS n/a

06/12/13 LPI Level Platforms AVG Technologies Systems & Network Management - Remote access SaaS for IT and managed service providers n/a

06/11/13 ALLiGAcom DiCentral Technical & Embedded Applications - EDI integration SaaS n/a

06/11/13 Sensemetric GmbH GFK Group Business Intelligence - Social media monitoring and analytics n/a

06/11/13 StreamBase Systems TIBCO Software Business Intelligence - Real-time data analytics and complex event processing n/a

06/10/13 Fox Technologies Parallax Capital Partners IT Security - Access management and governance n/a

06/10/13 Inkiru @WalmartLabs Business Intelligence - Customer analytics SaaS for the retail sector n/a

06/10/13 Seamless Technology Avnet Systems & Network Management - IT service management and process automation n/a

06/10/13 TimeManagement (assets) Agilysys ERP & Business Applications - Workforce management for the food industry n/a

06/07/13 EdgeSpring Salesforce.com Business Intelligence - Enterprise data analytics n/a

06/06/13 Incential Software IMS Health ERP & Business Applications - Sales performance management SaaS for the life sciences sector n/a

06/05/13 Jolly Giant Software Brandon Systems Platforms, Development Tools & Deployment - IBM terminal emulation software n/a

06/05/13 LearnSomething Xerox ERP & Business Applications - Employee training management SaaS n/a

06/05/13 MobileScope Evidon IT Security - Mobile application data security n/a

06/04/13 Appsecute ActiveState Platforms, Development Tools & Deployment - Software development project management platform as a service n/a

06/04/13 ExactTarget Salesforce.com Marketing Applications - Marketing campaign management SaaS $2,399

06/03/13 alfabet AG Software AG Systems & Network Management - Enterprise architecture and IT portfolio management n/a


M&A Activity

Announced Software Acquisitions: 2Q 2013 continued

6

($ millions)



06/03/13 GamSys Electronics for Imaging ERP & Business Applications - SCM for the professional print sector in Europe n/a

06/03/13 InCycle Software (assets) Microsoft Platforms, Development Tools & Deployment - Release and deployment automation for .NET n/a

06/03/13 ISS Group P2 Energy Solutions Business Intelligence - Operational data analysis $43

06/03/13 Preactor Group Siemens AG ERP & Business Applications - Production management software for the manufacturing sector n/a

05/30/13 ShopLogic BloomReach Business Intelligence - Product optimization for the e-commerce sector n/a

05/29/13 Apriso Dassault Systemes Business Intelligence - Business process management for the manufacturing sector $205

05/29/13 IASO Backup B.V. GFI Software IT Security - Data backup and recovery SaaS n/a

05/29/13 JouleX Cisco Systems ERP & Business Applications - Energy management and monitoring $107

05/28/13 Lender Processing Services Fidelity National Financial Financial Applications - Mortgage loan origination SaaS for the real estate sector $2,900

05/28/13 PayTrue Solutions EFT Group S.A. IT Security - Transaction anti-fraud management for businesses in Latin America n/a

05/28/13 Transplace Greenbriar Equity Group ERP & Business Applications - Logistics management SaaS n/a

05/23/13 Folders Box Storage Management - Mobile file management n/a

05/23/13 Help Desk Software BrightBox Solutions Systems & Network Management - Configuration and IT help desk management n/a

05/22/13 Iris Couch Nodejitsu Platforms, Development Tools & Deployment - Open source non-relational database as a service n/a

05/22/13 Nine By Blue The Rimm-Kaufman Group Business Intelligence - Search engine optimization analytics n/a

05/22/13 Solera Networks Blue Coat Systems IT Security - Network security vulnerability assessment $225

05/21/13 Adaptivity (assets) EMC Platforms, Development Tools & Deployment - Cloud application migration planning SaaS n/a

05/21/13 N-able Technologies SolarWinds Systems & Network Management - IT systems management $120

05/20/13 Prosoft Tecnologia S.A. Wolters Kluwer Business Intelligence - Business process management for the accounting sector n/a

05/20/13 Websense Vista Equity Partners IT Security - Web content filtering and anti-data leakage $903

05/17/13 StreamOnce Jive Software ERP & Business Applications - Team collaboration SaaS $6

05/17/13 Third Defense Caliber Security Partners IT Security - IT security assessment SaaS n/a

05/16/13 FileBound Upland Software Content Management - Document management SaaS n/a

05/16/13 KMS Software SAP ERP & Business Applications - Employee onboarding management SaaS n/a

05/16/13 Meridian Apps Aruba Networks Platforms, Development Tools & Deployment - Mobile application development SaaS n/a

05/16/13 Oakland Software Talend Business Intelligence - Semi-structured data mapping n/a

05/15/13 Cartavi DocuSign Content Management - Document management and team collaboration SaaS n/a

05/15/13 RosterLive WorkForce Software ERP & Business Applications - Workforce management for the SMB sector in Australia n/a

05/15/13 SyncDog IntegriCell Group IT Security - Mobile data monitoring and vulnerability detection n/a

05/14/13 BankLink (assets) MYOB Technology Pty Financial Applications - Accounting automation for the SMB sector in Australia and New Zealand $113

05/14/13 FuGen Solutions 8K Miles IT Security - Single sign-on password management SaaS $8

05/14/13 OneOps @WalmartLabs Platforms, Development Tools & Deployment - Cloud application development and deployment n/a

05/14/13 SignNow Barracuda Networks Content Management - Electronic document signature automation n/a

05/13/13 AsiaInfo-Linkage CITIC Capital & Temasek ERP & Business Applications - CRM and analytics for the telecom sector in China $890

05/13/13 CommonIT Oodrive Group IT Security - Enterprise secure access browser n/a

05/13/13 Lucky Sort Twitter Business Intelligence - Real-time data visualization and analytics n/a

05/13/13 ProspectStream Rippe & Kingston Systems ERP & Business Applications - Customer experience management SaaS n/a

05/13/13 Trendslide Dyn Business Intelligence - Enterprise mobile analytics n/a

05/13/13 webKPI CellarStone Business Intelligence - Business analytics SaaS n/a

05/09/13 Crocodoc Box Content Management - Document conversion software n/a

05/09/13 Subscription Bridge Cloud Nation ERP & Business Applications - Customer billing SaaS n/a

05/09/13 Ubalo Twitter Platforms, Development Tools & Deployment - Development tools for large-scale computing n/a

05/08/13 Civica OMERS Capital Partners ERP & Business Applications - CRM, ERP and document management SaaS $607

05/08/13 Epic Data International Sylogist ERP & Business Applications - Manufacturing process management $5

05/08/13 Market Leader Trulia Marketing Applications - Lead management SaaS for the real estate sector $355


M&A Activity


7

($ millions)



05/07/13 Dearborn Electronics Global Edge Software Technical & Embedded Applications - Embedded software in automotive electronics n/a

05/07/13 Expert Systems AB ReadSoft AB Financial Applications - Electronic invoice processing SaaS for businesses in Sweden $6

05/07/13 Haystak Digital Marketing VinSolutions Marketing Applications - Social media marketing management SaaS n/a

05/07/13 Proxomo Software Lucent Mobile Platforms, Development Tools & Deployment - Mobile application development SaaS n/a

05/06/13 BMC Software Bain, Golden Gate, GIC & Insight Systems & Network Management - Application, systems and database management $6,900

05/06/13 Enstratius Dell Platforms, Development Tools & Deployment - Cloud management and deployment SaaS n/a

05/06/13 NComVA AB QlikTech Business Intelligence - Website visitor visualization and analytics $8

05/06/13 NYLX Aklero Risk Analytics Financial Applications - Mortgage loan data analytics SaaS n/a

05/06/13 Stonesoft Oyj Intel IT Security - Network security management $389

05/06/13 Tweasy SA Swisscom AG Marketing Applications - Email and mobile marketing SaaS for businesses in Europe n/a

05/02/13 GemStone Systems (assets) GemTalk Systems Platforms, Development Tools & Deployment - Application server platform n/a

05/02/13 KSD Software Norway AS Descartes Systems ERP & Business Applications - Customs declaration logistics management for the shipping sector in Europe $33

05/01/13 CLARA Jive Software Business Intelligence - Online community analytics SaaS $7

05/01/13 Sage Group (construction assets) ISIS Equity Partners ERP & Business Applications - ERP and project management SaaS for the construction sector n/a

05/01/13 WaveMaker Pramati Technologies Platforms, Development Tools & Deployment - Web application development SaaS n/a

04/30/13 Best Case Solutions The CINgroup ERP & Business Applications - Bankruptcy document preparation for the legal sector n/a

04/30/13 Sage Group (debt collection assets) SIDETRADE.COM ERP & Business Applications - Customer debt collection management for businesses in France n/a

04/30/13 Semantelli IMS Health Business Intelligence - Social media monitoring SaaS for the life sciences sector n/a

04/29/13 Arkoon Network Security CASSIDIAN IT Security - Unified threat management $19

04/29/13 RecruitActive Konetic ERP & Business Applications - Employee recruitment management SaaS n/a

04/26/13 NewMindsets ClevrU ERP & Business Applications - Employee training management SaaS n/a

04/25/13 LongJump Software AG Platforms, Development Tools & Deployment - Software development, deployment and release management n/a

04/25/13 ParAccel Actian Business Intelligence - Big data warehousing analytics n/a

04/25/13 Parse Facebook Platforms, Development Tools & Deployment - Mobile application development SaaS n/a

04/24/13 Aepona Intel Platforms, Development Tools & Deployment - Mobile application distribution and development for wireless telecom service providers n/a

04/24/13 Workable Solutions Alegeus Technologies ERP & Business Applications - Health benefits management SaaS n/a

04/23/13 ManageRED Software Binary Tree Platforms, Development Tools & Deployment - Active Directory, password and server data migration n/a

04/23/13 Monty Program AB SkySQL AB Platforms, Development Tools & Deployment - Open source MySQL-based relational database server n/a

04/23/13 Socio Logiciels NP6 SA Business Intelligence - Customer analytics reporting n/a

04/23/13 TDCI Ltd. Infor ERP & Business Applications - Product configuration management for the manufacturing sector n/a

04/22/13 Facilita Software Development TestPlant Systems & Network Management - Software load and performance testing n/a

04/22/13 Layer 7 Technologies CA Technologies Platforms, Development Tools & Deployment - API management SaaS $155

04/22/13 UrbanCode IBM Platforms, Development Tools & Deployment - Software development deployment management n/a

04/22/13 Webdetails Pentaho Business Intelligence - Data analytics visualization n/a

04/18/13 Computershare (assets) Solium Capital Financial Applications - Stockholder plan management n/a

04/18/13 EnCompass Technologies Eka Software Solutions Pvt Financial Applications - Energy trade management for the financial services sector n/a

04/18/13 Innovative Automation SI Systems ERP & Business Applications - Warehouse and inventory management n/a

04/18/13 Iter8 Quindell Portfolio Financial Applications - Insurance policy administration and underwriting $4

04/18/13 TeamSeer Access Group ERP & Business Applications - Workforce management SaaS n/a

04/17/13 Mashery Intel Platforms, Development Tools & Deployment - API management SaaS n/a

04/16/13 Digital Sandbox Haystax Technology IT Security - Threat management analytics n/a

04/12/13 LonoCloud ViaSat Platforms, Development Tools & Deployment - Application migration and development platform as a service n/a

04/11/13 Artesys International SA Idox Content Management - Technical document management $3

04/11/13 IronPearl PayPal Business Intelligence - Customer acquisition and retention optimization n/a

04/10/13 Xpenser Coupa Software ERP & Business Applications - Expense management SaaS n/a


M&A Activity


8

($ millions)



04/09/13 Maildistiller Proofpoint IT Security - Email anti-spam SaaS n/a

04/09/13 Mendeley Reed Elsevier Group Content Management - Document management SaaS for the education sector n/a

04/09/13 VMware (protect product family) LANDesk Software Platforms, Development Tools & Deployment - Software patch and configuration management SaaS n/a

04/09/13 Simpleview Ridgemont Equity Partners ERP & Business Applications - CRM and web content management SaaS for the tourism marketing sector n/a

04/08/13 Run My Process Fujitsu Business Intelligence - Business process management SaaS n/a

04/07/13 Qatarlyst Ebix Financial Applications - Insurance policy quote SaaS for Europe and the Middle East n/a

04/04/13 Data Security Pte Gemalto NV IT Security - Server authentication SaaS for financial institutions and government agencies in the Asia-Pacific region n/a

04/03/13 RSA Security (assets) LexisNexis IT Security - Identity authentication n/a

04/03/13 SetLogik ReachForce Business Intelligence - Marketing data analytics SaaS n/a

04/03/13 Three Laws Mobility BoxTone IT Security - Application and data security management n/a

04/02/13 ChangeTrack Research Accenture Business Intelligence - Corporate data visualization and analytics n/a

04/02/13 Infoglide Software Fair Isaac IT Security - Anti-fraud, security and compliance SaaS $7

04/02/13 VirtualSharp Software PHD Virtual IT Security - Disaster recovery software n/a

04/01/13 BGC Partners (assets) NASDAQ OMX Financial Applications - Securities trading software $750

04/01/13 IBM (ShowCase assets) Help/Systems Platforms, Development Tools & Deployment - Relational database creation and management n/a


M&A Activity

Most Active Software Acquirers: 2007 – 2013

9

$22.5

$13.1

$18.5

$19.5

$9.9

$4.8

$35.9

$20.0

$1.1

$4.0

$6.5

$4.5

$1.3 $1.2

65 64

56

51 50

30 29 29 29

26 25

19 19

11

0

10

20

30

40

50

60

70

$-

$5

$10

$15

$20

$25

$30

$35

$40

Nu

mb

er

of

De

als

Aggre

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$ b

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Announced Deal Value [a]

Number of Deals

[a] Includes only transactions for which data was publicly available (2007 – 2013 YTD)


M&A Activity

Most Active Software Acquirers continued

10

Note: “Known acquired value” includes only transactions for which data was publicly available (2007 – 2013 YTD)

2007 – 2013 YTD ($ millions)

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware

CA

EMC

Continued

Consideration Equity Enterprise

Date Target % Cash % Stock Value Value

CA Technologies Known acquired value (since 2007): $1,272

04/22/13 Layer 7 Technologies 100.0% - - $155

09/10/12 Paragon Global Technology - - - -

07/29/11 Watchmouse B.V. - - - -

06/29/11 Interactive TKO 100.0% - - $330

05/16/11 SE-Consulting GmbH - - - -

04/06/11 Base Technologies - - - -

01/25/11 Torokina Networks - - - -

09/28/10 Hyperformix - - - -

08/30/10 Arcot Systems 100.0% - - $200

08/12/10 4Base Technology - - - -

03/10/10 Nimsoft 100.0% - - $350

02/24/10 3Tera - - - -

01/11/10 Oblicore 100.0% - - $20

09/14/09 NetQoS 100.0% - $200 $200

06/02/09 Cassatt - - - -

01/05/09 Orchestria - - - -

11/13/08 Eurekify - - - $17

10/15/08 Optinuity - - - -

10/07/08 IDFocus - - - -

Cisco Systems Known acquired value (since 2007): $19,520

06/20/13 Composite Software 100.0% - - $180

05/29/13 JouleX 100.0% - - $107

04/03/13 Ubiquisys - - - $310

03/25/13 SolveDirect Service Management GmbH - - $21 $21

01/29/13 Cognitive Security sro - - - -

01/23/13 Intucell 100.0% - $475 $475

12/18/12 BroadHop - - - -

11/29/12 Cariden Technologies 100.0% - $141 $141

11/18/12 Meraki 100.0% - $1,200 $1,200

11/15/12 Cloupia 100.0% - $125 $125

10/04/12 vCider - - - -

07/13/12 Virtuata - - - -

05/03/12 Truviso - - - -

03/28/12 ClearAccess - - - -

03/15/12 NDS Group Ltd. - - $3,896 $5,000

10/20/11 BNI Video - - - $99

08/29/11 Versly - - - -

03/29/11 newScale - - - -

02/04/11 Inlet Technologies 100.0% - - $95

01/26/11 Pari Networks - - - -

12/01/10 LineSider Technologies - - - -

09/02/10 Arch Rock Corporation - - - -



Cisco Systems (continued)

08/26/10 ExtendMedia - - - -

05/20/10 CoreOptics 100.0% - - $99

05/18/10 MOTO Development Group - - - -

01/05/10 Rohati Systems - - - -

11/02/09 DVN Holdings (set-top box business) - - - $45

10/27/09 ScanSafe 100.0% - - $183

10/13/09 Starent Networks 100.0% - $2,900 $2,510

10/01/09 Tandberg 100.0% - $3,400 $3,400

04/09/09 Tidal Software 100.0% - - $105

03/19/09 Pure Digital Technologies - - - $590

01/27/09 Richards-Zeta Building Intelligence - - - -

09/19/08 Jabber - - - -

08/27/08 PostPath - - - $215

07/23/08 Pure Networks 100.0% - - $120

06/10/08 DiviTech A/S - - - -

11/01/07 Securent - - - -

10/23/07 Navini Networks - - - $330

09/27/07 Latigent - - - -

09/18/07 Cognio - - - -

07/23/07 GlooLabs - - - -

05/21/07 BroadWare Technologies - - - -

03/28/07 SpansLogic - - - -

03/15/07 WebEx 100.0% - $3,200 $3,145

03/13/07 NeoPath Networks - - - $60

03/05/07 Utah Street Networks (assets) - - - -

02/26/07 Qovia - - - -

02/21/07 Reactivity 100.0% - - $135

02/09/07 Five Across - - - -

01/04/07 IronPort Systems - - - $830

Dell Known acquired value (since 2007): $6,496

05/06/13 Enstratius 100.0% - - -

12/18/12 Credant Technologies - - - -

11/16/12 Gale Technologies - - - -

10/23/12 Kitenga - - - -

06/25/12 Quest Software 100.0% - $2,383 $2,408

04/05/12 MAKE Technologies - - - -

04/03/12 Clerity Solutions - - - -

04/02/12 Wyse Technology - - - -

03/13/12 SonicWALL - - - $1,250

02/24/12 AppAssure - - - -

06/20/11 RNA Networks - - - -

01/04/11 SecureWorks - - - -


M&A Activity


11

2007 – 2013 YTD ($ millions)

Continued

EMC

Cisco

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

SAP

Symantec

VMware

CA


Dell



Dell (continued)

12/22/10 InSite One - - - -

12/13/10 Compellent Technologies 100.0% - $960 $820

11/02/10 Boomi - - - -

07/19/10 Ocarina Networks - - - -

07/01/10 Scalent - - - -

02/11/10 Kace Networks 100.0% - - $123

02/12/08 MessageOne 100.0% - - $155

02/08/08 Exanet - - - -

11/15/07 Everdream - - - -

11/05/07 EqualLogic 100.0% - $1,418 $1,400

08/06/07 Zing Systems - - - -

08/02/07 ASAP Software - - - $340

07/18/07 SilverBack Technologies - - - -

EMC Known acquired value (since 2007): $4,754

05/21/13 Adaptivity (assets) - - - -

11/29/12 MoreVRP - - - -

10/30/12 Silver Tail Systems - - - -

05/31/12 Watch4Net Solutions - - - -

05/21/12 Syncplicity - - - -

05/10/12 XtremIO - - - -

03/20/12 Likewise Software - - - -

10/03/11 Zettapoint - - - -

04/04/11 NetWitness - - - -

11/15/10 Isilon 100.0% - $2,434 $2,250

07/06/10 Greenplum 100.0% - - -

01/04/10 Archer Technologies - - - -

09/01/09 Kazeon Systems - - - -

08/31/09 FastScale Technology - - - -

06/01/09 Data Domain 100.0% - $2,378 $2,100

05/27/09 Configuresoft - - - $87

01/02/09 SourceLabs - - - -

04/08/08 Iomega 100.0% - $213 $148

04/07/08 WysDM Software - - - -

04/01/08 Conchango plc 100.0% - - $84

03/10/08 Infra Corporation - - - -

02/21/08 Pi 100.0% - - -

12/27/07 Document Sciences 100.0% - $87 $85

10/30/07 Voyence - - - -

10/15/07 Illuminator - - - -

10/04/07 Berkeley Data Systems - - - -

08/30/07 BusinessEdge Solutions - - - -

08/09/07 Tablus - - - -



EMC (continued)

07/19/07 X-Hive Corporation - - - -

06/04/07 Verid - - - -

HP Known acquired value (since 2007): $35,915

12/03/12 Digital Risk 100.0% - $175 $175

12/06/11 Hiflex Software GmbH - - - -

08/18/11 Autonomy 100.0% - $11,560 $10,889

05/24/11 Printelligent - - - -

02/14/11 Vertica - - - -

09/13/10 ArcSight 100.0% - $1,651 $1,500

08/26/10 Stratavia - - - -

08/23/10 3PAR 100.0% - $2,400 $2,296

08/17/10 Fortify Software - - - -

06/10/10 Phoenix Technologies (HyperSpace assets) 100.0% - - $12

04/28/10 Palm 100.0% - $1,400 $1,199

11/11/09 3Com 100.0% - $3,131 $2,705

07/17/09 IBRIX - - - -

06/22/09 Excellerate HRO - - - -

10/01/08 LeftHand Networks 100.0% - - $360

08/11/08 Colubris Networks - - - -

05/13/08 Electronic Data Systems - - - $13,900

03/31/08 Tower Software - - - $100

01/22/08 Exstream Software - - - $720

12/10/07 NUR Macroprinters 100.0% - - $118

11/12/07 EYP Mission Critical Facilities - - - -

10/22/07 AOME - - - -

09/13/07 MacDermid ColorSpan - - - -

07/23/07 Neoware 100.0% - $328 $206

07/23/07 Opsware 100.0% - $1,673 $1,600

06/19/07 SPI Dynamics - - - $135

03/22/07 Tabblo - - - -

02/26/07 PolyServe - - - -

02/05/07 Bristol Technology - - - -

IBM Known acquired value (since 2007): $13,139

06/04/13 SoftLayer Technologies - - - -

04/22/13 UrbanCode - - - -

02/01/13 Star Analytics - - - -

12/19/12 StoredIQ - - - -

09/24/12 Butterfly Software Ltd. - - - -

08/27/12 Kenexa 100.0% - $1,307 $1,280

05/02/12 Tealeaf Technology - - - -

04/25/12 Vivisimo - - - -


M&A Activity


12

[a] Acquired by McAfee prior to Intel acquisition


Continued

EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Microsoft

Oracle

SAP

Symantec

VMware

CA

Intuit

2007 – 2013 YTD ($ millions)



IBM (continued)

04/13/12 Varicent Software - - - -

01/31/12 Worklight - - - -

01/04/12 Green Hat - - - -

12/15/11 Emptoris - - - -

12/08/11 DemandTec 100.0% - $504 $439

12/05/11 Curam Software Ltd. - - - -

10/11/11 Platform Computing - - - -

10/04/11 Q1 Labs - - - -

09/01/11 Algorithmics - - - $387

08/31/11 i2 - - - -

03/22/11 TRIRIGA 100.0% - - $108

10/21/10 Clarity Systems Ltd. - - - -

10/14/10 PSS Systems - - - -

09/27/10 BLADE Network Technologies - - - -

09/20/10 Netezza 100.0% - $1,836 $1,700

09/15/10 OpenPages - - - -

08/13/10 Unica 100.0% - $523 $480

08/10/10 Datacap - - - -

07/29/10 Storwize - - - -

07/01/10 BigFix - - - -

06/15/10 Coremetrics - - - -

05/24/10 Sterling Commerce 100.0% - - $1,400

05/03/10 Cast Iron Systems 100.0% - - -

02/16/10 Intelliden - - - -

02/03/10 Initiate Systems - - - -

01/20/10 National Interest Security Company - - - -

12/16/09 Lombardi - - - -

11/30/09 Guardium - - - $225

10/05/09 Wilshire Credit Corporation - - - -

09/22/09 RedPill Solutions - - - -

07/28/09 Ounce Labs - - - -

07/25/09 SPSS 100.0% - $1,170 $859

05/04/09 Exeros 100.0% - - $12

01/15/09 Outblaze - - - $8

11/18/08 Transitive - - - -

07/28/08 ILOG SA 100.0% - - -

07/02/08 Platform Solutions - - - -

04/29/08 InfoDyne - - - -

04/18/08 Diligent Technologies - - - -

04/10/08 FilesX - - - $50

03/12/08 Encentuate - - - -

01/23/08 AptSoft - - - -

01/18/08 Net Integration Technologies - - - -



IBM (continued)

01/02/08 XIV - - - $325

12/21/07 Solid Information Technology - - - -

12/06/07 Arsenal Digital Solutions - - - -

11/12/07 Cognos 100.0% - $5,000 $4,960

10/24/07 NovusCG - - - -

08/22/07 WebDialogs - - - -

08/03/07 Princeton Softech - - - -

07/16/07 DataMirror 100.0% - $179 $161

06/11/07 Telelogic 100.0% - $781 $745

06/06/07 Watchfire - - - -

04/26/07 Serbian Business Systems (assets) - - - -

01/30/07 DM Information Systems - - - -

01/29/07 Softek - - - -

Intel Known acquired value (since 2007): $11,085

05/29/13 ST-Ericsson (assets) - - - -

05/06/13 Stonesoft Oyj 100.0% - - $389

04/24/13 Aepona - - - -

04/17/13 Mashery - - - -

04/03/13 ProFUSION - - - -

02/26/13 LynuxWorks (ValidEdge technology) - - - -

11/28/12 Rocketbox Studios GmbH - - - -

11/19/12 ZiiLABS 100.0% - $30 $30

08/24/12 NEVEX - - - -

07/13/12 Whamcloud - - - -

07/02/12 IDesia Ltd. - - - -

04/24/12 Cray (assets) - - $140 $140

01/23/12 Qlogic (InfiniBand assets) 100.0% - - $125

10/04/11 NitroSecurity - - - -

09/28/11 Telemap Ltd. - - - -

09/14/11 CoFluent Design - - - -

09/01/11 GraphTech - - - -

07/19/11 Fulcrum Microsystems - - - -

05/25/11 SiPort Corporation - - - -

03/23/11 Sentrigo - - - $35

03/14/11 SySDSoft - - - -

02/14/11 Silicon Hive BV - - - -

01/04/11 Nordic Edge AB - - - $37

12/02/10 InternetSafety.com [a] 100.0% - $11 $10

11/17/10 CognoVision - - - $17

09/02/10 Neocleus - - - -

08/30/10 Infineon Technologies AG (assets) 100.0% - - $1,400

08/19/10 McAfee 100.0% - $7,680 $6,876


M&A Activity


13

Continued

EMC

Cisco

Dell

Salesforce

HP

IBM

Microsoft

Oracle

SAP

Symantec

VMware

CA

Intuit

Intel

[a] Acquired by McAfee prior to Intel acquisition


2007 – 2013 YTD ($ millions)



Intel (continued)

08/16/10 Texas Instruments (assets) - - - -

07/29/10 tenCube [a] 100.0% - $11 $10

05/25/10 Trust Digital [a] 100.0% - $33 $32

05/24/10 Comsys Communications - - - $30

02/05/10 Virtutech - - - -

08/19/09 RapidMind - - - -

07/31/09 Cilk Arts - - - -

07/30/09 MX Logic [a] 100.0% - $138 $163

06/04/09 Wind River Systems 100.0% - $884 $714

05/15/09 Solidcore Systems [a] 100.0% - $32 $41

05/12/09 Endeavor Security [a] 100.0% - $3 $3

02/16/09 Swiftfoot Graphics AB - - - -

10/15/08 NetEffect - - - $8

09/22/08 Secure Computing [a] 100.0% - $497 $465

08/29/08 OpenedHand - - - -

07/31/08 Reconnex [a] 100.0% - $40 $45

05/19/08 WebVMC - - - -

02/25/08 Offset Software - - - -

11/28/07 Neoptica - - - -

10/30/07 ScanAlert [a] 100.0% - $48 $54

10/08/07 SafeBoot [a] 100.0% - $339 $350

09/14/07 Havok 100.0% - - $110

Intuit Known acquired value (since 2007): $1,154

06/21/13 Elastic Intelligence - - - -

01/28/13 Payvment (assets) - - - -

04/23/12 Demandforce 100.0% - $424 $424

04/10/12 AisleBuyer - - - -

05/11/10 Medfusion 100.0% - - $91

09/14/09 Mint.com 100.0% - - $170

06/02/09 PayCycle 100.0% - - $170

04/17/09 BooRah - - - -

12/03/08 Entellium (CRM assets) 100.0% - - $8

12/19/07 Electronic Clearing House 100.0% - $131 $122

11/26/07 Homestead Technologies 100.0% - - $170

Microsoft Known acquired value (since 2007): $18,474

06/03/13 InCycle Software (assets) - - - -

03/05/13 MetricsHub - - - -

01/03/13 id8 Group R2 Studios - - - -

10/17/12 MarketingPilot Software - - - -

10/16/12 StorSimple - - - -

10/04/12 PhoneFactor - - - -



Microsoft (continued)

07/09/12 Perceptive Pixel - - - -

06/25/12 Yammer 100.0% - $1,200 $1,200

06/07/11 Prodiance - - - -

05/10/11 Skype Global - - - $8,500

10/29/10 Canesta - - - -

10/06/10 AVIcode - - - -

12/11/09 Opalis Software - - - -

12/10/09 Sentillion - - - -

11/09/09 SourceGear (Teamprise assets) - - - -

09/22/09 Computer Generated Solutions (assets) - - - -

09/22/09 Fullscope (assets) - - - -

09/22/09 LS Retail EHF (assets) - - - -

09/22/09 To-Increase Denmark A/S (assets) - - - -

09/21/09 Interactive Supercomputing - - - -

08/06/09 Office.com - - - -

06/01/09 Rosetta Biosoftware - - - -

05/07/09 BigPark - - - -

02/21/09 3DV Systems - - - -

10/31/08 Wysiwyg Comunicacion Interactiva - - - -

08/29/08 Greenfield Online 100.0% - $486 $455

07/24/08 DATAllegro - - - -

07/14/08 Zoomix - - - -

07/01/08 Powerset 100.0% - - -

06/26/08 MobiComp - - - -

06/18/08 Navic Networks - - - -

04/17/08 Farecast - - - -

03/31/08 90 Degree Software - - - -

03/20/08 Komoku - - - -

03/14/08 Rapt - - - -

03/12/08 Kidaro - - - $100

02/27/08 YaData - - - $25

02/11/08 Danger 100.0% - - $500

02/07/08 Caligari Corporation - - - -

01/21/08 Calista Technologies - - - $125

01/08/08 Fast Search & Transfer 100.0% - $1,289 $1,200

12/12/07 Multimap - - - -

11/30/07 Webfives - - - -

11/12/07 Musiwave - - - $50

10/29/07 GCS (assets) - - - -

10/02/07 Jellyfish.com - - - -

08/29/07 Parlano - - - -

07/26/07 AdECN - - - -

06/08/07 Stratature - - - -


M&A Activity


14

[a] Acquired by Sun Microsystems prior to Oracle acquisition


EMC

Cisco

Dell

Salesforce

HP

IBM

Intel

Intuit

Microsoft

Oracle

VMware

CA

Symantec

SAP

2007 – 2013 YTD ($ millions)



Microsoft (continued)

06/05/07 Engyro - - - -

05/18/07 aQuantive 100.0% - $6,370 $6,319

05/03/07 ScreenTonic - - - -

03/28/07 devBiz Business Solutions - - - -

03/14/07 eBECS (assets) - - - -

03/14/07 Tellme Networks - - - -

02/26/07 Medstory - - - -

Oracle Known acquired value (since 2007): $22,502

12/20/12 Eloqua - - - $871

11/08/12 Instantis - - - -

09/17/12 SelectMinds - - - -

07/30/12 Xsigo Systems - - - -

07/19/12 Skire - - - -

07/10/12 Involver - - - -

06/05/12 Collective Intellect - - - -

05/23/12 Vitrue - - - -

02/09/12 Taleo 100.0% - $1,900 $2,010

10/24/11 RightNow Technologies 100.0% - $1,500 $1,434

10/18/11 Endeca Technologies - - - -

09/22/11 GoAhead Software - - - -

07/28/11 InQuira - - - -

07/21/11 Ksplice - - - -

06/30/11 Pillar Data Systems - - - -

06/21/11 FatWire Software - - - -

06/20/11 Datanomic - - - -

11/02/10 Art Technology Group 100.0% - $1,000 $817

10/05/10 Passlogix - - - -

05/26/10 eServGlobal (pre-paid software assets) - - - -

05/25/10 Market2Lead (assets) - - - -

05/20/10 Secerno - - - -

04/16/10 Phase Forward 100.0% - $755 $714

02/10/10 Convergin - - - -

02/08/10 AmberPoint - - - -

01/04/10 Silver Creek Systems - - - -

10/12/09 Sophoi - - - -

09/29/09 HyperRoll - - - -

07/23/09 GoldenGate Software - - - -

06/17/09 Conformia - - - -

05/13/09 Virtual Iron - - - -

04/20/09 Sun Microsystems 100.0% - $7,400 $5,667

03/23/09 Relsys International - - - -

02/04/09 mValent - - - -



Oracle (continued)

01/07/09 Q-layers [a] - - - -

11/03/08 Tacit Software - - - -

10/29/08 Haley Ltd. - - - $100

10/08/08 Primavera Systems - - - -

10/01/08 Advanced Visual Technology - - - $5

09/02/08 ClearApp - - - -

07/31/08 Global Knowledge Software - - - -

06/23/08 Skywire Software - - - -

05/13/08 AdminServer - - - -

04/25/08 Montalvo Systems [a] - - - $25

04/09/08 Auptyma - - - -

03/27/08 Empirix (e-TEST software) - - - -

02/12/08 innotek [a] - - - -

01/16/08 BEA Systems 100.0% - $8,352 $6,852

01/16/08 Captovation - - - -

01/16/08 MySQL [a] - - - $1,000

12/06/07 Moniforce - - - -

11/13/07 Vaau [a] - - - -

10/24/07 Interlace Systems - - - -

10/09/07 LogicalApps - - - -

09/12/07 Cluster File Systems [a] - - - -

09/02/07 Netsure Telecom - - - -

08/31/07 Bridgestream - - - -

07/18/07 Bharosa - - - -

05/15/07 Agile Software 100.0% - $495 $301

05/01/07 Revenue Technologies - - - -

04/24/07 Lodestar - - - -

04/18/07 AppForge - - - -

04/12/07 SavaJe Technologies [a] - - - -

03/23/07 Tangosol - - - -

03/01/07 Hyperion 100.0% - $3,192 $2,706

Salesforce.com Known acquired value (since 2007): $4,004

06/07/13 EdgeSpring - - - -

06/04/13 ExactTarget 100.0% - $2,500 $2,399

02/06/13 EntropySoft - - - -

09/11/12 BlueTail - - - -

07/09/12 GoInstant - - $70 $70

06/25/12 Thinkfuse - - - -

06/18/12 ChoicePass - - - -

06/04/12 Buddy Media - - - $689

05/01/12 Stypi - - - -

12/15/11 Rypple - - - -

Continued


M&A Activity


15

EMC

Cisco

Dell

HP

IBM

Intel

Intuit

Microsoft

SAP

CA

Salesforce

Oracle

Symantec

VMware


2007 – 2013 YTD ($ millions)



SAP (continued)

05/14/07 MaXware - - - -

05/14/07 Wicom Communications - - - -

05/08/07 OutlookSoft - - - -

02/20/07 Pilot Software - - - -

Symantec Known acquired value (since 2007): $4,515

03/20/12 Nukona - - - -

03/05/12 Odyssey Software - - - -

01/16/12 LiveOffice - - - $115

05/19/11 Clearwell Systems - - $410 $390

05/19/10 VeriSign (identity & authentication assets) 100.0% - - $1,280

04/29/10 GuardianEdge 100.0% - - $73

04/29/10 PGP Corporation 100.0% - - $300

01/12/10 Gideon Technology - - - -

11/01/09 SoftScan - - - -

04/21/09 Mi5 Networks - - - $18

10/08/08 MessageLabs 100.0% - - $695

08/18/08 PC Tools 100.0% - - $250

08/05/08 nSuite Technologies 100.0% - - $20

06/06/08 SwapDrive 100.0% - - $123

04/09/08 AppStream 100.0% - - $52

01/02/08 Transparent Logic 100.0% - - $12

11/05/07 Vontu 100.0% - - $350

02/23/07 4FrontSecurity 100.0% - - $7

01/29/07 Altiris 100.0% - $1,030 $830

VMware Known acquired value (since 2007): $1,055

02/11/13 Virsto Software 100.0% - - -

08/07/12 Pattern Insight (assets) - - - -

05/22/12 Wanova - - - $75

04/24/12 Cetas Software - - - -

08/26/11 PacketMotion - - - -

06/13/11 Digital Fuel Technologies - - - -

05/31/11 Socialcast - - - -

05/16/11 Shavlik Technologies - - - -

04/26/11 SlideRocket - - - -

03/08/11 WaveMaker - - - -

01/14/11 NeoAccel 100.0% - - $15

08/31/10 Integrien - - - $100

08/31/10 TriCipher - - - -

05/06/10 GemStone Systems - - - -

04/13/10 Rabbit Technologies 100.0% - - -

02/25/10 EMC (Ionix software assets) 100.0% - - $200



Salesforce.com (continued)

11/14/11 Model Metrics 100.0% - - $58

09/21/11 Assistly 100.0% - - $50

08/26/11 Navajo Systems - - - -

03/30/11 Radian6 84.7% 15.3% - $326

02/01/11 Manymoon - - - -

01/06/11 Dimdim 100.0% - - $31

12/21/10 Etacts - - - -

12/08/10 Heroku 100.0% - - $212

09/24/10 Activa Live - - - -

06/04/10 Sitemasher - - - -

04/21/10 Jigsaw Data Corporation 100.0% - - $142

01/21/10 Informavores - - - -

12/11/09 GroupSwim - - - -

08/04/08 InStranet - - $32 $27

10/23/07 CrispyNews - - - -

04/10/07 Koral - - - -

SAP Known acquired value (since 2007): $19,995

05/16/13 KMS Software - - - -

03/07/13 Camilion Solutions - - - -

02/22/13 SmartOps - - - -

01/31/13 Ticket-Web GmbH - - - -

05/22/12 Ariba 100.0% - $4,500 $4,267

04/30/12 Purisma 100.0% - $2 $2

04/10/12 Syclo - - - -

01/16/12 Datango AG (assets) - - - -

12/03/11 SuccessFactors 100.0% - $3,650 $3,400

09/20/11 Crossgate AG - - - -

09/06/11 Right Hemisphere - - - -

01/12/11 SECUDE AG (IdM assets) - - - -

12/16/10 cundus AG (disclosure management assets) - - - -

05/12/10 Sybase 100.0% - $6,100 $5,800

04/21/10 TechniData AG - - - -

12/03/09 SOALogix - - - -

07/20/09 SAF Simulation, Analysis & Forecasting 100.0% - $91 $49

06/10/09 SkyData Systems - - - -

05/11/09 Clear Standards - - - -

05/06/09 Highdeal - - - -

02/18/09 Coghead - - - -

07/10/08 Ness Technologies (SAP distribution division) - - - $21

06/17/08 Visiprise - - - -

10/17/07 YASU Technologies - - - -

10/07/07 Business Objects 100.0% - $6,770 $6,455

Continued


M&A Activity


16

EMC

Cisco

Dell

HP

IBM

Intel

Intuit

Microsoft

SAP

CA

Salesforce

Oracle

Symantec

VMware


2007 – 2013 YTD ($ millions)



VMware (continued)

02/23/10 RTO Software - - - -

01/12/10 Zimbra 100.0% - - $100

08/10/09 SpringSource 86.2% 13.8% $362 $420

11/26/08 Tungsten Graphics - - - -

11/10/08 Trango Virtual Processors - - - -

10/09/08 Blue Lane Technologies - - - -

05/28/08 B-hive Networks - - - $61

01/15/08 Thinstall - - - -

01/14/08 Foedus - - - -

10/01/07 Sciant - - - $9

09/11/07 Dunes Technologies 100.0% - - $45

08/07/07 Determina 100.0% - - $9

06/11/07 Propero 100.0% - - $21


Public Market Equity Valuations Relative Performance by Index

Median EV / Revenue Median EV / EBITDA Median % of 52 Week High


Small Cap Software includes: AMSW.A, ATTU, AVID, DWCH, EXA, FALC, GUID, LLNW, MGIC, NTWK, OM:RSOF B, QAD, TISA, TSX:NXJ, VOCS

Large Cap Software includes: CSCO, DELL, EMC, HPQ, IBM, INTC, MSFT, ORCL, SAP

High Growth Software includes: CARB, CNQR, CRM, CSOD, CYNI, DATA, ENV, GIMO, IMPV, JIVE, MKTO, N, NOW, PANW, SPLK, SWI, WDAY

High Profitability Software includes: AKAM, ANSS, BMC, CA, CHKP, EBIX, FFIV, INTC, INTU, MCRO, MSCI, MSFT, ORCL, SAP, SSNC, SWI, VMW, VRSK, VRSN

109%

86%

135%

106%

75%

100%

125%

150%

175%

Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

1 Year Relative Performance NASDAQ

Large Cap Software

Small Cap Software

High Growth Software

High Profitability Software

50%

100%

150%

200%

250%

300%

Jun-10 Jun-11 Jun-12 Jun-13

3 Year Relative Performance

2.2x

7.8x

4.2x

1.3x

2.2x

6.3x

3.9x

0.8x

0x

1x

2x

3x

4x

5x

6x

7x

8x

9x

Large Cap

Software

High Growth

Software

High Profitability

Software

Small Cap

Software

CY13E

CY14E

6.6x

26.9x

9.9x 8.8x

6.0x

26.5x

9.0x

6.6x

0x

5x

10x

15x

20x

25x

30x

Large Cap

Software

High Growth

Software

High Profitability

Software

Small Cap

Software

90% 93%

90%

71%

0%

25%

50%

75%

100%

Large Cap

Software

High Growth

Software

High

Profitability

Software

Small Cap

Software

118%



Price Performance and Valuation Metrics by Segment

18


Me

dia

n E

V /

Re

ve

nu

e

Me

dia

n E

V /

EB

ITD

A

Me

dia

n %

of

52

We

ek

Hig

h

nm

17.3x

23.7x

14.6x

9.0x

11.8x

17.3x

11.3x

9.9x

12.3x

15.8x

8.9x

6.6x

8.9x

11.6x

26.9x

18.7x

9.9x 8.8x

nm

18.0x 18.3x

12.5x

8.3x

10.7x 10.2x 10.3x

8.6x 9.2x

21.0x

8.2x

6.0x

9.3x 10.3x

26.5x

16.5x

9.0x

6.6x

0x

5x

10x

15x

20x

25x

30x

12.3x

4.7x

4.2x 4.0x 4.0x 3.6x 3.4x

3.1x 2.9x 2.7x 2.6x 2.5x

2.2x 2.2x 1.9x

7.8x

5.7x

4.2x

1.3x

8.8x

4.3x

3.5x 3.6x 3.4x 3.3x 2.8x 2.9x

2.5x 2.7x

2.1x 2.4x 2.2x 2.1x

1.8x

6.3x

4.8x

3.9x

0.8x

0x

2x

4x

6x

8x

10x

12x

14x CY13E CY14E

Median CY13E Median CY14E

94% 95% 91%

97% 94% 93%

84% 87%

70%

87% 92% 94%

90% 84%

97% 93% 94%

90%

71%

0%

25%

50%

75%

100%

125%

HCM ERP &

Gen.

Bus. Apps

Business

Intelligence

Supply

Chain

Mgmt

IT Security Financial

Apps

Marketing

Apps

Platforms,

Dev Tools

& Deployment

App

Delivery

&

Network

Acceleration

Sys. &

Network

Mgmt

Storage

Mgmt

Tech.

&

Embedded

Apps

Global

Diversified

Network

Infra.

Content

Mgmt

High

Growth

SaaS High

Profitability

Small Cap

% of 52-Wk High

Median % of 52-Wk High



Price Performance and Valuation Metrics of Notable Software Vendors

19

EV

/ R

eve

nu

e

EV

/ E

BIT

DA

%

of

52

We

ek

Hig

h


6.7x

5.4x

5.0x 4.8x 4.7x

3.8x 3.6x 3.5x 3.4x

3.2x

2.8x 2.7x 2.6x

2.3x 2.2x 2.0x 2.0x

1.8x

1.4x

0.6x 0.3x

6.2x

4.3x

4.7x 4.4x

4.1x

3.5x 3.3x 3.3x

3.0x 3.1x

2.6x 2.6x 2.6x 2.2x 2.2x 2.0x

1.9x

1.7x

1.3x

0.6x 0.3x

0x

2x

4x

6x

8x CY13E CY14E

Median CY13E Median CY14E

14.8x

33.1x

17.2x

14.4x

12.0x 11.2x

9.2x

7.1x

10.6x 9.9x 9.1x

6.6x 6.9x 5.9x

8.2x

6.3x 6.3x

7.0x 6.4x

4.3x 5.4x

13.5x

24.9x

14.6x

12.8x

10.5x 9.9x 8.7x

6.5x

9.4x 9.3x 8.6x

6.0x 6.8x

5.5x

7.8x

5.3x 5.9x

6.2x 5.5x 4.3x 4.6x

0x

10x

20x

30x

40x

96%

80%

97% 96%

65%

87% 89%

84%

70%

96% 93%

97% 96%

90% 89%

89%

97%

84%

96% 96%

91%

0%

25%

50%

75%

100%

vrsk CRM ADBE DSY VMW SAP INTU ORCL CTXS FISV FIS MSFT CA intc IBM SYMC CSCO EMC NTAP

52-Wk High

Median % of 52-Wk High



Equity Trading Multiples by Growth Tranche

20

Market Valuations of Publicly-Traded Software Companies by Growth Tranche Forward Year Median EV / Revenue by Growth Tranche

Forward Year Median P/E by Growth Tranche


EV / Revenue Price / Earnings

Revenue Current Year Forward Year Current Year Forward Year

Growth Date Mean Median Mean Median Mean Median Mean Median

< 5% 2Q 2013 2.3 x 2.3 x 2.2 x 2.2 x 17.0 x 13.2 x 14.3 x 11.5 x

1Q 2013 2.2 2.3 2.2 2.2 14.0 13.6 12.2 11.6

4Q 2012 1.8 2.0 1.9 2.0 15.6 14.7 15.3 13.2

3Q 2012 1.8 1.9 1.8 1.9 14.2 12.8 12.3 11.5

2Q 2012 1.8 1.9 1.7 1.8 13.4 12.2 11.4 10.9

1Q 2012 2.3 2.2 2.2 2.1 13.8 13.6 12.6 12.3

4Q 2011 2.1 2.0 2.0 1.9 14.0 13.7 13.1 12.1

3Q 2011 1.8 1.9 1.7 1.8 11.1 11.2 11.1 10.4

2Q 2011 2.4 2.6 2.3 2.5 12.9 13.9 11.7 12.4

1Q 2011 2.2 2.5 2.2 2.4 12.5 13.2 11.5 12.4

4Q 2010 2.6 2.4 2.7 2.4 19.9 18.7 18.7 16.2

3Q 2010 2.3 2.1 2.2 2.0 17.1 14.3 16.3 13.8

5 - 10% 2Q 2013 2.7 x 2.5 x 2.5 x 2.3 x 20.1 x 17.4 x 16.6 x 15.4 x

1Q 2013 2.9 2.6 2.7 2.5 20.1 18.1 16.7 15.1

4Q 2012 3.1 3.0 2.8 2.8 22.0 19.7 18.7 17.7

3Q 2012 2.7 2.4 2.5 2.2 21.6 18.0 16.9 15.2

2Q 2012 2.7 2.4 2.5 2.3 17.1 15.6 13.9 13.4

1Q 2012 3.0 2.5 2.7 2.3 16.9 17.3 14.6 15.1

4Q 2011 2.3 2.1 2.1 2.0 17.6 14.7 13.4 11.5

3Q 2011 2.2 2.1 2.0 1.9 15.9 13.0 12.3 11.2

2Q 2011 2.6 2.4 2.4 2.2 18.0 16.3 14.3 14.6

1Q 2011 2.9 2.5 2.6 2.3 20.2 18.6 16.5 15.6

4Q 2010 2.9 2.7 2.7 2.5 17.7 17.1 14.8 14.3

3Q 2010 2.6 2.5 2.4 2.4 17.3 15.8 14.4 14.3

10 - 20% 2Q 2013 3.5 x 3.1 x 3.1 x 2.8 x 33.2 x 24.3 x 29.2 x 22.2 x

1Q 2013 3.3 3.1 2.9 2.6 33.6 27.0 25.6 21.2

4Q 2012 3.6 3.2 3.2 2.9 31.8 25.0 27.4 22.0

3Q 2012 3.9 3.3 3.4 2.9 28.6 25.8 23.1 21.3

2Q 2012 3.6 2.7 3.1 2.4 25.7 22.7 20.9 19.4

1Q 2012 4.1 3.3 3.6 2.8 30.9 28.6 25.6 22.4

4Q 2011 3.4 2.9 3.0 2.6 27.1 24.5 21.2 20.3

3Q 2011 3.1 2.5 2.7 2.3 24.5 20.7 18.6 16.8

2Q 2011 4.3 3.7 3.7 3.3 33.0 27.9 26.0 22.3

1Q 2011 4.4 3.9 3.9 3.5 32.0 27.3 27.2 22.4

4Q 2010 3.8 3.7 3.3 3.2 32.3 26.6 26.9 22.4

3Q 2010 3.7 3.3 3.3 2.9 34.4 28.0 26.6 22.0

> 20% 2Q 2013 7.8 x 6.4 x 6.0 x 5.3 x 56.2 x 58.5 x 47.8 x 48.1 x

1Q 2013 6.9 6.2 5.4 5.0 59.2 62.5 52.3 49.0

4Q 2012 7.7 7.3 5.9 5.9 55.2 47.4 49.0 41.1

3Q 2012 7.9 6.7 6.0 5.3 54.9 52.8 52.1 49.9

2Q 2012 6.4 6.0 5.0 4.9 51.0 49.4 48.4 39.1

1Q 2012 6.4 6.1 5.0 5.0 46.8 37.2 38.2 31.1

4Q 2011 6.4 6.4 5.0 5.0 48.3 41.9 35.9 33.3

3Q 2011 5.2 4.8 4.1 3.9 47.0 43.3 79.8 33.0

2Q 2011 6.6 6.7 5.4 5.5 44.7 45.2 39.1 39.1

1Q 2011 6.6 7.2 5.4 5.9 58.2 54.2 45.4 42.1

4Q 2010 7.3 7.2 5.7 6.0 52.5 52.0 42.2 37.0

3Q 2010 6.5 7.2 5.2 5.7 48.9 49.7 38.1 36.1

-

1x

2x

3x

4x

5x

6x

7x

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2009 2010 2011 2012 2013

> 20% growth

10 - 20% growth

5 - 10% growth

< 5% growth

-

10x

20x

30x

40x

50x

60x

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

2009 2010 2011 2012 2013



Equity Trading Multiples by Segment

21

Notes:

[a] Wall Street consensus estimates

[b] EV/EBITDA multiples in excess of 50x or less than 0x and P/E multiples in excess of 100x or less than 0x are considered to be not meaningful


Business Intelligence

Global Diversified

ERP & General

Business Applications

Financial Applications

Human Capital

Management

IT Security

Management

Network

Infrastructure

Platforms, Dev Tools

& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability

Software-as-a-Service

Supply Chain

Management

Small Cap

Marketing

Applications

Application Delivery &

Network Acceleration

Content Management

($ millions)

Share Price Market Enterprise Revenue [a] EV / Revenue EBITDA [a] EV / EBITDA [b] P/E Multiple [b]

Company (06/30/13) Value Value CY13E CY14E y/y CY13E CY14E CY13E mgn CY14E mgn CY13E CY14E CY13E CY14E

Global Diversified

Microsoft 34.55$ 288,737$ 229,002$ 83,772$ 87,318$ 4% 2.7 x 2.6 x 34,643$ 41% 38,197$ 44% 6.6 x 6.0 x 11.5 x 10.8 x

IBM 191.11 213,950 230,466 103,530 106,255 3% 2.2 2.2 27,966 27% 29,656 28% 8.2 7.8 11.4 10.4

Oracle 30.71 144,550 131,325 37,840 39,968 6% 3.5 3.3 18,456 49% 20,054 50% 7.1 6.5 11.1 10.1

Cisco Systems 24.34 131,088 99,958 49,767 52,547 6% 2.0 1.9 15,837 32% 16,957 32% 6.3 5.9 11.9 11.2

Intel 24.23 121,104 123,005 53,483 55,646 4% 2.3 2.2 20,755 39% 22,252 40% 5.9 5.5 12.9 11.9

SAP AG 73.08 87,077 88,650 23,114 25,340 10% 3.8 3.5 7,887 34% 8,942 35% 11.2 9.9 16.5 14.5

EMC 23.62 53,549 42,719 23,420 25,373 8% 1.8 1.7 6,141 26% 6,930 27% 7.0 6.2 12.7 11.3

Hewlett Packard 24.80 47,937 61,887 110,289 108,689 -1% 0.6 0.6 14,326 13% 14,241 13% 4.3 4.3 6.9 6.8

Dell 13.33 23,419 17,480 56,508 56,224 -1% 0.3 0.3 3,211 6% 3,815 7% 5.4 4.6 13.2 10.7

Mean 60,191$ 61,929$ 4% 2.1 x 2.0 x 16,580$ 30% 17,894$ 31% 6.9 x 6.3 x 12.0 x 10.9 x

Median 53,483 55,646 4% 2.2 2.2 15,837 32% 16,957 32% 6.6 6.0 11.9 10.8

Application Delivery & Network Acceleration

Citrix Systems 60.36$ 11,347$ 9,942$ 2,964$ 3,344$ 13% 3.4 x 3.0 x 941$ 32% 1,061$ 32% 10.6 x 9.4 x 19.6 x 17.2 x

Akamai Technologies 42.55 7,650 6,567 1,548 1,755 13% 4.2 3.7 664 43% 767 44% 9.9 8.6 21.8 19.3

F5 Networks 68.80 5,434 4,248 1,483 1,687 14% 2.9 2.5 561 38% 665 39% 7.6 6.4 15.2 13.1

Riverbed Technology 15.56 2,587 2,607 1,077 1,197 11% 2.4 2.2 304 28% 350 29% 8.6 7.5 15.7 13.0

Radware 13.79 618 451 192 212 10% 2.3 2.1 39 20% 50 24% 11.6 9.0 19.6 15.5

Mean 1,453$ 1,639$ 12% 3.0 x 2.7 x 502$ 32% 578$ 34% 9.6 x 8.2 x 18.4 x 15.6 x

Median 1,483 1,687 13% 2.9 2.5 561 32% 665 32% 9.9 8.6 19.6 15.5


Tableau Software 55.42$ 3,187$ 3,147$ 193$ 271$ 40% 16.3 x 11.6 x (12)$ nm 3$ 1% nm x nm x nm x nm x

Qlik Technologies 28.27 2,535 2,321 478 573 20% 4.9 4.1 58 12% 85 15% 39.7 27.2 68.1 46.9

MicroStrategy 86.96 984 654 583 638 9% 1.1 1.0 48 8% 69 11% 13.8 9.4 53.3 28.2

PROS 29.95 864 781 145 176 21% 5.4 4.4 23 16% 28 16% 33.6 27.7 58.9 53.8

Bazaarvoice 9.43 734 639 181 211 17% 3.5 3.0 (17) nm 9 4% nm nm nm nm

Actuate 6.64 329 261 143 155 8% 1.8 1.7 29 20% 34 22% 9.0 7.7 17.2 14.3

Mean 287$ 337$ 19% 5.5 x 4.3 x 22$ 14% 38$ 12% 24.0 x 18.0 x 49.4 x 35.8 x

Median 187 241 18% 4.2 3.5 26 14% 31 13% 23.7 18.3 56.1 37.5

Content Management

Adobe 45.56$ 23,013$ 20,673$ 4,107$ 4,432$ 8% 5.0 x 4.7 x 1,203$ 29% 1,417$ 32% 17.2 x 14.6 x 31.4 x 26.5 x

Open Text 68.47 4,054 4,180 1,416 1,496 6% 3.0 2.8 444 31% 461 31% 9.4 9.1 12.4 11.3

Kofax 5.17 444 357 264 277 5% 1.4 1.3 43 16% 49 18% 8.2 7.3 17.2 14.9

IntraLinks 7.26 414 414 222 231 4% 1.9 1.8 36 16% 40 17% 11.6 10.3 58.5 42.7

Guidance Software 8.74 247 221 134 149 11% 1.7 1.5 7 5% 17 11% 32.5 13.4 nm 33.0

Mean 1,229$ 1,317$ 7% 2.6 x 2.4 x 346$ 20% 397$ 22% 15.8 x 10.9 x 29.9 x 25.7 x

Median 264 277 6% 1.9 1.8 43 16% 49 18% 11.6 10.3 24.3 26.5



Equity Trading Multiples by Segment continued

22

($ millions)

Notes:






ERP & General Business Applications

Salesforce.com 38.18$ 22,715$ 21,330$ 3,934$ 4,975$ 26% 5.4 x 4.3 x 645$ 16% 858$ 17% 33.1 x 24.9 x 93.9 x 65.2 x

NetSuite 91.74 6,897 6,720 408 519 27% 16.5 12.9 41 10% 53 10% nm nm nm nm

Sage Group 5.17 6,663 6,989 2,121 2,177 3% 3.3 3.2 622 29% 650 30% 11.2 10.8 14.8 13.4

Constellation Software 137.75 2,919 2,982 1,106 1,273 15% 2.7 2.3 205 18% 256 20% 14.6 11.6 17.5 13.9

Guidewire Software 42.05 2,658 2,455 311 377 21% 7.9 6.5 34 11% 49 13% nm 49.7 nm 90.3

Aveva Group 34.28 2,335 2,046 368 412 12% 5.6 5.0 122 33% 143 35% 16.8 14.3 26.5 22.6

Medidata Solutions 77.45 2,118 1,994 274 330 20% 7.3 6.0 63 23% 81 24% 31.9 24.8 59.6 49.4

Blackbaud 32.57 1,488 1,690 501 547 9% 3.4 3.1 109 22% 123 23% 15.5 13.7 28.0 23.4

RealPage 18.34 1,426 1,403 386 456 18% 3.6 3.1 91 24% 115 25% 15.4 12.2 31.1 24.9

Jive Software 18.17 1,311 1,148 151 195 29% 7.6 5.9 (28) nm (18) nm nm nm nm nm

Synchronoss Technologies 30.87 1,254 1,197 344 416 21% 3.5 2.9 108 31% 137 33% 11.1 8.7 23.7 18.6

Fleetmatics 33.23 1,198 1,119 167 205 23% 6.7 5.5 47 28% 62 30% 23.8 18.0 46.4 35.5

SPS Commerce 55.00 859 789 100 119 19% 7.9 6.6 13 13% 17 14% nm 45.7 nm 82.0

ServiceSource 9.32 757 640 269 309 15% 2.4 2.1 21 8% 32 10% 29.8 19.9 nm 63.3

Enghouse Systems Ltd. 22.55 595 518 174 n/a n/a 3.0 n/a 44 25% n/a n/a 11.8 nm 22.8 nm

SciQuest 25.05 582 536 91 112 23% 5.9 4.8 19 21% 25 22% 28.6 21.7 66.7 48.8

Model N 23.36 533 428 106 127 20% 4.1 3.4 0 0% 3 2% nm nm nm nm

E2open 17.50 460 414 72 89 23% 5.7 4.7 (9) nm (2) nm nm nm nm nm

ClickSoftware 8.34 274 215 120 142 18% 1.8 1.5 12 10% 16 11% 17.9 13.4 34.8 22.3

Callidus Software 6.59 255 294 106 121 14% 2.8 2.4 8 7% 14 12% 38.9 21.0 nm 39.1

Mean 555$ 679$ 19% 5.3 x 4.5 x 108$ 18% 138$ 20% 21.5 x 20.7 x 38.8 x 40.9 x

Median 272 330 20% 4.7 4.3 42 20% 53 20% 17.3 18.0 29.5 35.5


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management




23

($ millions)

Notes:







Intuit 61.04$ 18,350$ 16,766$ 4,700$ 5,075$ 8% 3.6 x 3.3 x 1,818$ 39% 1,931$ 38% 9.2 x 8.7 x 17.3 x 16.4 x

FIS 42.84 12,786 16,957 6,097 6,415 5% 2.8 2.6 1,856 30% 1,973 31% 9.1 8.6 15.1 13.6

Fiserv 87.41 11,765 15,458 4,838 5,056 5% 3.2 3.1 1,555 32% 1,670 33% 9.9 9.3 14.7 13.2

Verisk Analytics 59.70 10,378 11,556 1,723 1,874 9% 6.7 6.2 782 45% 859 46% 14.8 13.5 25.9 22.9

Concur 81.38 5,033 4,486 573 707 23% 7.8 6.3 125 22% 159 22% 35.9 28.3 75.9 62.9

Jack Henry 47.13 4,063 4,013 1,165 1,257 8% 3.4 3.2 390 33% 421 34% 10.3 9.5 21.3 19.4

MSCI 33.27 4,052 4,618 1,018 1,065 5% 4.5 4.3 444 44% 461 43% 10.4 10.0 15.6 14.5

SS&C Technologies 32.90 2,876 3,775 718 776 8% 5.3 4.9 289 40% 322 42% 13.1 11.7 17.7 15.7

Advent Software 35.06 1,919 1,765 379 403 6% 4.7 4.4 89 24% 116 29% 19.8 15.2 29.1 26.9

Fair Isaac 45.83 1,666 2,022 777 817 5% 2.6 2.5 238 31% 238 29% 8.5 8.5 13.8 12.9

SimCorp 29.66 1,263 1,185 301 338 12% 3.9 3.5 78 26% 90 27% 15.2 13.1 23.4 19.3

Fidessa 29.32 1,094 977 429 449 5% 2.3 2.2 118 27% 124 28% 8.3 7.9 23.4 22.1

Bottomline Technologies 25.29 968 820 266 293 10% 3.1 2.8 52 19% 65 22% 15.9 12.5 20.7 17.8

IRESS Market Technology 6.85 881 823 194 205 6% 4.2 4.0 66 34% 73 35% 12.5 11.3 20.0 18.1

Envestnet 24.60 857 827 233 307 32% 3.6 2.7 40 17% 55 18% 20.7 14.9 43.0 29.8

Ellie Mae 23.08 641 528 131 159 21% 4.0 3.3 45 34% 58 36% 11.8 9.1 21.2 17.3

Ebix 9.26 361 396 210 n/a n/a 1.9 n/a 82 39% n/a n/a 4.8 nm 6.1 nm

Mean 1,397$ 1,575$ 11% 4.0 x 3.7 x 474$ 32% 538$ 32% 13.5 x 12.0 x 23.8 x 21.4 x

Median 573 741 8% 3.6 3.3 125 32% 198 32% 11.8 10.7 20.7 18.0

Human Capital Management

Workday 64.09$ 12,269$ 11,551$ 439$ 664$ 51% 26.3 x 17.4 x (96)$ nm (87)$ nm nm x nm x nm x nm x

Ultimate Software 117.29 3,366 3,298 409 500 22% 8.1 6.6 58 14% 107 21% nm 30.9 84.5 64.0

Cornerstone OnDemand 43.30 2,312 2,243 182 255 40% 12.3 8.8 (0) nm 11 4% nm nm nm nm

Mean 343$ 473$ 38% 15.6 x 10.9 x (13)$ 14% 10$ 13% nm x nm x nm x nm x

Median 409 500 40% 12.3 8.8 (0) nm 11 13% nm nm nm nm


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management




24

($ millions)

Notes:



[c] Acquisition pending




IT Security Management

Symantec 22.48$ 15,693$ 14,037$ 6,909$ 7,146$ 3% 2.0 x 2.0 x 2,227$ 32% 2,644$ 37% 6.3 x 5.3 x 12.6 x 10.7 x

Check Point 49.68 10,076 6,552 1,398 1,487 6% 4.7 4.4 816 58% 869 58% 8.0 7.5 14.6 13.4

Verisign 44.66 7,525 6,063 956 1,016 6% 6.3 6.0 608 64% 653 64% 10.0 9.3 19.8 17.7

Trend Micro 31.75 4,182 2,980 1,078 1,089 1% 2.8 2.7 326 30% 329 30% 9.2 9.0 24.6 24.1

Fortinet 17.50 2,967 2,185 600 686 14% 3.6 3.2 134 22% 165 24% 16.3 13.3 36.1 29.4

Sourcefire 55.55 1,753 1,520 278 336 21% 5.5 4.5 55 20% 69 21% 27.8 22.0 58.1 46.7

Imperva 45.04 1,128 1,016 136 167 23% 7.5 6.1 4 3% 14 9% nm nm nm nm

AVG Technologies 19.45 1,066 1,071 419 472 13% 2.6 2.3 137 33% 151 32% 7.8 7.1 10.2 8.7

Proofpoint 24.25 930 843 129 152 18% 6.5 5.5 (4) nm 6 4% nm nm nm nm

Qualys 16.12 583 459 108 125 16% 4.3 3.7 17 16% 22 18% 27.4 20.5 89.6 56.3

F-Secure 2.76 438 387 213 228 7% 1.8 1.7 48 22% 53 23% 8.1 7.3 16.1 14.2

Vasco Data Security 8.31 330 225 162 173 7% 1.4 1.3 26 16% 31 18% 8.8 7.4 18.5 16.5

Mean 1,032$ 1,090$ 11% 4.1 x 3.6 x 366$ 29% 417$ 28% 13.0 x 10.9 x 30.0 x 23.8 x

Median 349 404 10% 4.0 3.4 94 22% 110 24% 9.0 8.3 19.1 17.1

Marketing Applications

ExactTarget [c] 33.72$ 2,517$ 2,416$ 359$ 436$ 22% 6.7 x 5.5 x 5$ 1% 22$ 5% nm x nm x nm x nm x

Marketo 24.87 890 859 83 106 28% 10.3 8.1 (34) nm (27) nm nm nm nm nm

Responsys 14.31 788 683 192 225 17% 3.6 3.0 28 14% 34 15% 24.5 20.1 78.9 59.6

Constant Contact 16.07 494 396 286 318 11% 1.4 1.2 45 16% 54 17% 8.9 7.4 24.2 19.3

Marin Software 10.24 356 246 76 93 23% 3.3 2.7 (30) nm (26) nm nm nm nm nm

Vocus 10.52 223 260 182 204 12% 1.4 1.3 15 8% 26 13% 17.3 10.2 65.8 31.1

Mean 196$ 230$ 19% 4.4 x 3.6 x 5$ 10% 14$ 12% 16.9 x 12.6 x 56.3 x 36.7 x

Median 187 214 19% 3.4 2.8 10 11% 24 14% 17.3 10.2 65.8 31.1

Network Infrastructure

Juniper Networks 19.31$ 9,806$ 7,133$ 4,496$ 4,782$ 6% 1.6 x 1.5 x 1,069$ 24% 1,239$ 26% 6.7 x 5.8 x 17.0 x 15.1 x

Palo Alto Networks 42.16 3,229 2,837 461 625 36% 6.2 4.5 48 10% 101 16% nm 28.1 nm 77.4

Brocade 5.76 2,566 2,401 2,163 2,225 3% 1.1 1.1 524 24% 548 25% 4.6 4.4 9.4 8.3

Aruba Networks 15.36 1,769 1,329 611 718 17% 2.2 1.9 120 20% 143 20% 11.0 9.3 29.1 19.8

Infoblox 29.26 1,562 1,370 245 300 23% 5.6 4.6 30 12% 42 14% 46.2 32.9 73.3 47.4

Cyan 10.45 465 467 141 207 47% 3.3 2.3 (17) nm 4 2% nm nm nm nm

Extreme Networks 3.44 321 132 288 n/a n/a 0.5 n/a n/a n/a n/a n/a nm nm 16.8 nm

Mean 1,201$ 1,476$ 22% 2.9 x 2.6 x 296$ 18% 346$ 17% 17.1 x 16.1 x 29.1 x 33.6 x

Median 461 671 20% 2.2 2.1 84 20%nm 122 18% 8.9 9.3 17.0 19.8


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management




25

($ millions)

Notes:






Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management



Platforms, Development Tools & Deployment

Red Hat 47.82$ 9,146$ 8,323$ 1,475$ 1,691$ 15% 5.6 x 4.9 x 405$ 27% 495$ 29% 20.5 x 16.8 x 35.4 x 31.6 x

Informatica 34.98 3,910 3,319 913 1,022 12% 3.6 3.2 242 27% 283 28% 13.7 11.7 24.8 21.3

TIBCO Software 21.41 3,655 3,413 1,052 1,152 9% 3.2 3.0 272 26% 316 27% 12.5 10.8 22.0 17.8

Software AG 29.91 2,566 2,488 1,325 1,413 7% 1.9 1.8 347 26% 382 27% 7.2 6.5 11.8 10.5

Micro Focus 10.80 1,744 1,921 424 435 3% 4.5 4.4 191 45% 196 45% 10.0 9.8 11.6 10.9

Progress Software 23.01 1,299 978 333 343 3% 2.9 2.8 106 32% 125 36% 9.2 7.8 20.4 14.9

Pegasystems 33.12 1,290 1,109 504 556 10% 2.2 2.0 84 17% 95 17% 13.2 11.7 26.2 22.6

Axway Software 23.27 471 480 317 339 7% 1.5 1.4 53 17% 59 18% 9.1 8.1 12.0 11.0

Mean 793$ 869$ 8% 3.2 x 2.9 x 213$ 27% 244$ 28% 11.9 x 10.4 x 20.5 x 17.6 x

Median 709 789 8% 3.1 2.9 217 26% 240 28% 11.3 10.3 21.2 16.4

Storage Management

NetApp 37.78$ 13,770$ 9,069$ 6,569$ 6,974$ 6% 1.4 x 1.3 x 1,418$ 22% 1,659$ 24% 6.4 x 5.5 x 14.9 x 12.5 x

CommVault Systems 75.89 3,756 3,320 557 638 15% 6.0 5.2 131 24% 158 25% 25.3 21.0 47.8 41.9

Carbonite 12.39 328 271 105 130 23% 2.6 2.1 (0) nm 6 5% nm 45.1 nm nm

Mean 2,410$ 2,581$ 15% 3.3 x 2.9 x 516$ 23% 608$ 18% 15.8 x 23.9 x 31.4 x 27.2 x

Median 557 638 15% 2.6 2.1 131 23% 158 24% 15.8 21.0 31.4 27.2

Supply Chain Management

Manhattan Associates 77.16$ 1,517$ 1,408$ 413$ 452$ 9% 3.4 x 3.1 x 106$ 26% 121$ 27% 13.3 x 11.7 x 23.7 x 21.3 x

Descartes Systems 11.50 737 692 150 169 13% 4.6 4.1 44 29% 52 30% 15.8 13.4 16.5 14.2

Mean 282$ 311$ 11% 4.0 x 3.6 x 75$ 27% 86$ 29% 14.6 x 12.5 x 20.1 x 17.7 x

Median 282 311 11% 4.0 3.6 75 27% 86 29% 14.6 12.5 20.1 17.7

Systems & Network Management

VMware 66.99$ 28,916$ 24,429$ 5,175$ 5,931$ 15% 4.7 x 4.1 x 2,041$ 39% 2,332$ 39% 12.0 x 10.5 x 20.6 x 17.8 x

CA Technologies 28.62 13,037 11,551 4,503 4,508 0% 2.6 2.6 1,686 37% 1,704 38% 6.9 6.8 9.9 11.1

BMC Software [c] 45.13 6,546 6,270 2,261 2,326 3% 2.8 2.7 872 39% 878 38% 7.2 7.1 12.2 11.5

ServiceNow 40.39 5,783 5,444 398 578 45% 13.7 9.4 23 6% 70 12% nm nm nm nm

Splunk 46.36 5,278 4,947 274 364 33% 18.1 13.6 6 2% 21 6% nm nm nm nm

SolarWinds 38.81 2,969 2,695 337 420 25% 8.0 6.4 177 53% 216 51% 15.2 12.5 25.1 20.8

Compuware 10.34 2,230 2,159 967 1,033 7% 2.2 2.1 171 18% 235 23% 12.6 9.2 35.3 19.7

Netscout Systems 23.34 969 814 370 426 15% 2.2 1.9 101 27% 124 29% 8.1 6.6 17.7 14.3

LogMeIn 24.46 612 407 159 181 14% 2.6 2.2 29 18% 44 24% 14.3 9.3 49.6 31.5

Keynote Systems [c] 19.76 378 320 125 n/a n/a 2.6 n/a 17 14% n/a n/a 18.7 nm 33.3 nm

Mean 1,457$ 1,752$ 17% 5.9 x 5.0 x 512$ 25% 625$ 29% 11.9 x 8.9 x 25.5 x 18.1 x

Median 384 578 15% 2.7 2.7 136 23% 216 29% 12.3 9.2 22.8 17.8


($ millions)



Technical & Embedded Applications

Dassault Systemes 122.24$ 15,293$ 13,410$ 2,782$ 3,027$ 9% 4.8 x 4.4 x 932$ 34% 1,045$ 35% 14.4 x 12.8 x 25.6 x 23.2 x

Autodesk 33.94 7,702 5,968 2,374 2,558 8% 2.5 2.3 679 29% 762 30% 8.8 7.8 17.4 14.9

ANSYS 73.10 6,974 6,349 865 957 11% 7.3 6.6 444 51% 489 51% 14.3 13.0 24.3 22.1

Synopsys 35.75 5,572 5,011 2,004 2,114 6% 2.5 2.4 589 29% 605 29% 8.5 8.3 15.0 13.8

Cadence Design 14.48 4,143 3,684 1,462 1,584 8% 2.5 2.3 449 31% 509 32% 8.2 7.2 16.4 14.3

Parametric Technology 24.53 2,942 3,009 1,323 1,390 5% 2.3 2.2 332 25% 369 27% 9.1 8.2 13.3 11.9

Aspen Technology 28.79 2,722 2,507 331 400 21% 7.6 6.3 81 25% 119 30% 30.8 21.1 56.6 37.5

Mentor Graphics 19.55 2,256 2,282 1,156 1,228 6% 2.0 1.9 274 24% 306 25% 8.3 7.5 12.8 11.6

Mean 1,537$ 1,657$ 9% 3.9 x 3.5 x 473$ 31% 525$ 32% 12.8 x 10.7 x 22.7 x 18.7 x

Median 1,393 1,487 8% 2.5 2.4 446 29% 499 30% 8.9 8.2 16.9 14.6


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management



Notes:






Equity Trading Multiples by Comparable Subset

27

($ millions)




Salesforce.com 38.18$ 22,715$ 21,330$ 3,934$ 4,975$ 26% 5.4 x 4.3 x 645$ 16% 858$ 17% 33.1 x 24.9 x 93.9 x 65.2 x

Workday 64.09 12,269 11,551 439 664 51% 26.3 17.4 (96) nm (87) nm nm nm nm nm



Splunk 46.36 5,278 4,947 274 364 33% 18.1 13.6 6 2% 21 6% nm nm nm nm

Concur 81.38 5,033 4,486 573 707 23% 7.8 6.3 125 22% 159 22% 35.9 28.3 75.9 62.9

Informatica 34.98 3,910 3,319 913 1,022 12% 3.6 3.2 242 27% 283 28% 13.7 11.7 24.8 21.3

Ultimate Software 117.29 3,366 3,298 409 500 22% 8.1 6.6 58 14% 107 21% nm 30.9 84.5 64.0

ExactTarget [c] 33.72 2,517 2,416 359 436 22% 6.7 5.5 5 1% 22 5% nm nm nm nm


RealPage 18.34 1,426 1,403 386 456 18% 3.6 3.1 91 24% 115 25% 15.4 12.2 31.1 24.9


Fleetmatics 33.23 1,198 1,119 167 205 23% 6.7 5.5 47 28% 62 30% 23.8 18.0 46.4 35.5


SPS Commerce 55.00 859 789 100 119 19% 7.9 6.6 13 13% 17 14% nm 45.7 nm 82.0

Envestnet 24.60 857 827 233 307 32% 3.6 2.7 40 17% 55 18% 20.7 14.9 43.0 29.8

Responsys 14.31 788 683 192 225 17% 3.6 3.0 28 14% 34 15% 24.5 20.1 78.9 59.6

Bazaarvoice 9.43 734 639 181 211 17% 3.5 3.0 (17) nm 9 4% nm nm nm nm

LogMeIn 24.46 612 407 159 181 14% 2.6 2.2 29 18% 44 24% 14.3 9.3 49.6 31.5

Tangoe 15.43 597 563 191 226 19% 3.0 2.5 32 17% 40 18% 17.9 14.0 22.3 17.9

SciQuest 25.05 582 536 91 112 23% 5.9 4.8 19 21% 25 22% 28.6 21.7 66.7 48.8

Constant Contact 16.07 494 396 286 318 11% 1.4 1.2 45 16% 54 17% 8.9 7.4 24.2 19.3

IntraLinks 7.26 414 414 222 231 4% 1.9 1.8 36 16% 40 17% 11.6 10.3 58.5 42.7

Keynote Systems [c] 19.76 378 320 125 n/a n/a 2.6 n/a 17 14% n/a n/a 18.7 nm 33.3 nm

Callidus Software 6.59 255 294 106 121 14% 2.8 2.4 8 7% 14 12% 38.9 21.0 nm 39.1

Vocus 10.52 223 260 182 204 12% 1.4 1.3 15 8% 26 13% 17.3 10.2 65.8 31.1

Mean 413$ 530$ 23% 7.2 x 5.7 x 53$ 15% 79$ 16% 21.6 x 18.8 x 53.3 x 42.2 x

Median 207 255 22% 5.7 4.8 25 16% 40 17% 18.7 16.5 49.6 37.3


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management

Notes:







Equity Trading Multiples by Comparable Subset continued

28

($ millions)



Small Cap (<$250m Market Value)

Guidance Software 8.74$ 247$ 221$ 134$ 149$ 11% 1.7 x 1.5 x 7$ 5% 17$ 11% 32.5 x 13.4 x nm x 33.0 x

American Software 8.69 241 174 104 114 10% 1.7 1.5 20 19% 24 21% 8.7 7.1 20.7 17.9

Avid Technology 5.88 228 156 546 555 2% 0.3 0.3 41 7% 52 9% 3.8 3.0 21.3 8.4

Vocus 10.52 223 260 182 204 12% 1.4 1.3 15 8% 26 13% 17.3 10.2 65.8 31.1

Limelight Networks 2.25 218 99 188 202 7% 0.5 0.5 12 6% 17 9% 8.6 5.8 nm nm

Magic Software 5.39 202 167 136 n/a n/a 1.2 n/a n/a n/a n/a n/a nm nm 10.8 nm

QAD 11.48 177 119 260 278 7% 0.5 0.4 14 5% 22 8% 8.8 5.3 26.7 16.5

Exa 10.30 151 116 56 64 16% 2.1 1.8 5 9% 9 13% 22.5 13.6 nm 47.4

ReadSoft 3.86 128 109 123 133 8% 0.9 0.8 14 11% 18 14% 8.0 6.1 15.2 11.2

Datawatch 18.04 120 115 31 n/a n/a 3.7 n/a 5 16% n/a n/a 23.9 nm nm nm

NetSol Technologies 10.06 90 106 53 n/a n/a 2.0 n/a 17 32% n/a n/a 6.3 nm 11.4 nm

Attunity 5.84 74 70 n/a n/a n/a n/a n/a n/a n/a n/a n/a nm nm nm nm

FalconStor Software 1.37 66 38 n/a n/a n/a n/a n/a n/a n/a n/a n/a nm nm nm nm

NexJ Systems 2.80 57 20 28 36 26% 0.7 0.6 (18) nm (12) nm nm nm nm nm

Top Image Systems 2.82 34 31 n/a n/a n/a n/a n/a n/a n/a n/a n/a nm nm nm nm

Mean 153$ 193$ 11% 1.4 x 1.0 x 12$ 12% 19$ 12% 14.0 x 8.0 x 24.5 x 23.6 x

Median 128 149 10% 1.3 0.8 14 9% 18 12% 8.8 6.6 20.7 17.9

High Growth (>23% CY14E Revenue Growth)

Workday 64.09$ 12,269$ 11,551$ 439$ 664$ 51% 26.3 x 17.4 x (96)$ nm (87)$ nm nm x nm x nm x nm x

Cyan 10.45 465 467 141 207 47% 3.3 2.3 (17) nm 4 2% nm nm nm nm


Tableau Software 55.42 3,187 3,147 193 271 40% 16.3 11.6 (12) nm 3 1% nm nm nm nm


Palo Alto Networks 42.16 3,229 2,837 461 625 36% 6.2 4.5 48 10% 101 16% nm 28.1 nm 77.4

Gigamon 27.56 818 794 150 200 33% 5.3 4.0 n/a n/a n/a n/a nm nm nm nm

Splunk 46.36 5,278 4,947 274 364 33% 18.1 13.6 6 2% 21 6% nm nm nm nm

Envestnet 24.60 857 827 233 307 32% 3.6 2.7 40 17% 55 18% 20.7 14.9 43.0 29.8




Salesforce.com 38.18 22,715 21,330 3,934 4,975 26% 5.4 4.3 645 16% 858 17% 33.1 24.9 93.9 65.2

SolarWinds 38.81 2,969 2,695 337 420 25% 8.0 6.4 177 53% 216 51% 15.2 12.5 25.1 20.8

Concur 81.38 5,033 4,486 573 707 23% 7.8 6.3 125 22% 159 22% 35.9 28.3 75.9 62.9

Imperva 45.04 1,128 1,016 136 167 23% 7.5 6.1 4 3% 14 9% nm nm nm nm

Carbonite 12.39 328 271 105 130 23% 2.6 2.1 (0) nm 6 5% nm 45.1 nm nm

Mean 482$ 629$ 33% 10.0 x 7.4 x 58$ 16% 90$ 13% 26.2 x 25.6 x 59.5 x 51.2 x

Median 233 307 32% 7.8 6.3 5 10% 18 10% 26.9 26.5 59.5 62.9


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management

Notes:






Equity Trading Multiples by Comparable Subset continued

29

Notes:





($ millions)



High Profitability (>34% CY13E EBITDA Margin)

Verisign 44.66$ 7,525 6,063 956$ 1,016$ 6% 6.3 x 6.0 x 608$ 64% 653$ 64% 10.0 x 9.3 x 19.8 x 17.7 x

Check Point 49.68 10,076 6,552 1,398 1,487 6% 4.7 4.4 816 58% 869 58% 8.0 7.5 14.6 13.4

SolarWinds 38.81 2,969 2,695 337 420 25% 8.0 6.4 177 53% 216 51% 15.2 12.5 25.1 20.8

ANSYS 73.10 6,974 6,349 865 957 11% 7.3 6.6 444 51% 489 51% 14.3 13.0 24.3 22.1

Oracle 30.71 144,550 131,325 37,840 39,968 6% 3.5 3.3 18,456 49% 20,054 50% 7.1 6.5 11.1 10.1

Verisk Analytics 59.70 10,378 11,556 1,723 1,874 9% 6.7 6.2 782 45% 859 46% 14.8 13.5 25.9 22.9

Micro Focus 10.80 1,744 1,921 424 435 3% 4.5 4.4 191 45% 196 45% 10.0 9.8 11.6 10.9

MSCI 33.27 4,052 4,618 1,018 1,065 5% 4.5 4.3 444 44% 461 43% 10.4 10.0 15.6 14.5

Akamai Technologies 42.55 7,650 6,567 1,548 1,755 13% 4.2 3.7 664 43% 767 44% 9.9 8.6 21.8 19.3

Microsoft 34.55 288,737 229,002 83,772 87,318 4% 2.7 2.6 34,643 41% 38,197 44% 6.6 6.0 11.5 10.8

SS&C Technologies 32.90 2,876 3,775 718 776 8% 5.3 4.9 289 40% 322 42% 13.1 11.7 17.7 15.7

VMware 66.99 28,916 24,429 5,175 5,931 15% 4.7 4.1 2,041 39% 2,332 39% 12.0 10.5 20.6 17.8

Ebix 9.26 361 396 210 n/a n/a 1.9 n/a 82 39% n/a n/a 4.8 nm 6.1 nm

Intel 24.23 121,104 123,005 53,483 55,646 4% 2.3 2.2 20,755 39% 22,252 40% 5.9 5.5 12.9 11.9

Intuit 61.04 18,350 16,766 4,700 5,075 8% 3.6 3.3 1,818 39% 1,931 38% 9.2 8.7 17.3 16.4

BMC Software [c] 45.13 6,546 6,270 2,261 2,326 3% 2.8 2.7 872 39% 878 38% 7.2 7.1 12.2 11.5

F5 Networks 68.80 5,434 4,248 1,483 1,687 14% 2.9 2.5 561 38% 665 39% 7.6 6.4 15.2 13.1

CA Technologies 28.62 13,037 11,551 4,503 4,508 0% 2.6 2.6 1,686 37% 1,704 38% 6.9 6.8 9.9 11.1

SAP AG 73.08 87,077 88,650 23,114 25,340 10% 3.8 3.5 7,887 34% 8,942 35% 11.2 9.9 16.5 14.5

Mean 11,870$ 13,199$ 8% 4.3 x 4.1 x 4,906$ 44% 5,655$ 45% 9.7 x 9.1 x 16.3 x 15.2 x

Median 1,548 1,815 7% 4.2 3.9 782 41% 864 43% 9.9 9.0 15.6 14.5


Global Diversified

ERP & General



Human Capital

Management

IT Security

Management

Network

Infrastructure


& Deployment

Storage Management

Systems & Network

Management

Technical &

Embedded Apps

High Growth

High Profitability


Supply Chain

Management

Small Cap

Marketing

Applications



Content Management


Public & Private Equity Financing Activity Software IPOs: Trailing Twelve Months


Ma

rke

t V

alu

e (

$ m

illio

ns)

Fo

rwa

rd R

eve

nu

e M

ult

iple

$2,850

$374 $368 $361 $585

$4,488

$332 $433 $490 $465

$1,783

$560

$3,229

$460 $918

$583 $1,198

$12,269

$533 $356 $465 $890

$3,187

$818

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

At IPO

At 06/30/13

5.5x 3.9x

3.3x 3.1x 3.6x

10.8x

2.6x

4.7x

2.4x

4.1x

6.4x

2.7x

4.5x 4.7x

5.7x

3.7x

5.5x

17.4x

3.4x 2.7x 2.3x

8.1x

11.6x

4.0x

0x

2x

4x

6x

8x

10x

12x

14x

16x

18x

20x

Median at IPO

Median at 06/30/13

IPO Pricing

IPO Date 7/19/12 7/25/12 8/1/12 9/27/12 10/4/12 10/11/12 3/20/13 3/21/13 5/8/13 5/16/13 5/16/13 6/11/13

Original Range $34 - $37 $15 - $17 $9.5 - $11.5 $11 - $13 $15 - $17 $24 - $26 $13 - $15 $11 - $13 $10 - $12 $28 - $30 $11 - $13 $18 - $20

Pricing $42.00 $15.00 $11.50 $12.00 $17.00 $28.00 $15.50 $14.00 $11.00 $31.00 $13.00 $19.00

vs. Midpoint 18% (6%) 10% 0% 6% 12% 15% 17% 0% 7% 8% 0%

Current $42.16 $17.50 $23.50 $16.12 $33.23 $64.09 $23.36 $10.24 $10.45 $55.42 $24.87 $27.56

vs. Pricing 0% 17% 104% 34% 95% 129% 51% (27%) (5%) 79% 91% 45%

Operating Statistics at IPO ($ millions)

CY Revenue $311 $74 $91 $91 $126 $274 $104 $74 $141 $193 $83 $150

CY+1 Revenue $459 $85 $112 $109 $158 $405 $125 $91 $207 $271 $106 $200

Growth 47% 15% 23% 19% 25% 48% 20% 23% 47% 40% 28% 33%

Change from IPO 13% 23% 149% 62% 105% 173% 60% -18% -5% 91% 79% 46%

Change from IPO -18% 19% 74% 20% 52% 61% 31% -44% -4% 98% 81% 48%



Software IPO Pricing & Performance Data

31

Initial Equity Issuances from 2011 – 2013 YTD ($ millions)

Notes:

[a] Primary shares only

[b] Price at acquisition



Current Trading Data Valuation at IPO

Share Price Market Enterprise EV / Revenue Performance Share Amount Market Enterprise EV / Revenue Revenue at IPO

Company (06/30/13) Value Value CY13E CY14E Since IPO IPO Date Price Raised [a] Value Value TTM CY CY +1 TTM

Gigamon $ 27.56 $ 818 $ 794 5.3 x 4.0 x 45.1 % 06/11/13 $ 19.00 $ 86 $ 560 $ 537 5.1 x 3.6 x 2.7 x

Marketo 24.87 890 859 10.3 8.1 91.3 05/16/13 13.00 75 465 434 6.6 5.2 4.1

Tableau Software 55.42 3,187 3,147 16.3 11.6 78.8 05/16/13 31.00 155 1,783 1,742 12.2 9.0 6.4

Cyan 10.45 465 467 3.3 2.3 -5.0 05/08/13 11.00 88 490 489 4.5 3.5 2.4

Marin Software 10.24 356 246 3.3 2.7 -26.9 03/21/13 14.00 105 433 433 7.3 5.8 4.7

Model N 23.36 533 428 4.1 3.4 50.7 03/20/13 15.50 93 332 325 6.4 3.1 2.6

Workday 64.09 12,269 11,551 26.3 17.4 128.9 10/11/12 28.00 637 4,488 4,382 22.0 16.0 10.8

Fleetmatics 33.23 1,198 1,119 6.7 5.5 95.5 10/04/12 17.00 106 585 569 5.3 4.5 3.6

Qualys 16.12 583 459 4.3 3.7 34.3 09/27/12 12.00 80 361 332 4.0 3.6 3.1

Eloqua 23.50 [b] 918 833 7.4 5.7 104.3 08/01/12 11.50 81 368 365 4.3 4.0 3.3

E2open 17.50 460 414 5.7 4.7 16.7 07/25/12 15.00 56 374 335 4.8 4.5 3.9

Palo Alto Networks 42.16 3,229 2,837 6.2 4.5 0.4 07/19/12 42.00 202 2,850 2,527 9.9 8.1 5.5

ServiceNow 40.39 5,783 5,444 13.7 9.4 124.4 06/29/12 18.00 162 2,218 2,129 10.8 9.1 5.9

Exa 10.30 151 116 2.1 1.8 3.0 06/28/12 10.00 42 132 127 2.7 2.4 2.0

Infoblox 29.26 1,562 1,370 5.6 4.6 82.9 04/19/12 16.00 92 844 794 5.2 4.5 3.7

Proofpoint 24.25 930 843 6.5 5.5 86.5 04/19/12 13.00 67 426 418 5.1 4.1 3.5

Splunk 46.36 5,278 4,947 18.1 13.6 172.7 04/18/12 17.00 213 1,740 1,711 19.4 9.7 7.0

ExactTarget 33.72 [c] 2,517 2,416 6.7 5.5 77.5 03/21/12 19.00 162 1,228 1,185 6.3 4.4 3.6

Demandware 42.41 1,344 1,243 12.5 9.3 165.1 03/14/12 16.00 88 449 438 7.8 5.9 4.4

Bazaarvoice 9.43 734 639 3.5 3.0 -21.4 02/23/12 12.00 108 682 670 9.1 5.4 4.2

AVG Technologies 19.45 1,066 1,071 2.6 2.3 21.6 02/07/12 16.00 64 768 920 3.4 2.9 2.5

Guidewire Software 42.05 2,658 2,455 7.9 6.5 223.5 01/24/12 13.00 115 521 483 2.4 2.0 1.7

Jive Software 18.17 1,311 1,148 7.6 5.9 51.4 12/14/11 12.00 121 709 558 8.0 7.2 5.0

Imperva 45.04 1,128 1,016 7.5 6.1 150.2 11/09/11 18.00 86 312 302 4.2 3.9 3.1

Carbonite 12.39 328 271 2.6 2.1 23.9 08/10/11 10.00 54 247 231 4.7 3.9 2.8

Responsys 14.31 788 683 3.6 3.0 19.3 04/20/11 12.00 66 638 624 6.6 4.9 4.1

ServiceSource 9.32 757 640 2.4 2.1 -6.8 03/25/11 10.00 80 710 689 4.1 3.9 3.3

Cornerstone OnDemand 43.30 2,312 2,243 12.3 8.8 233.1 03/17/11 13.00 98 651 652 12.4 9.1 6.1

Mean 7.7 x 5.8 x 72.2 % $ 121 $ 906 $ 872 7.3 x 5.5 x 4.1 x

Median 6.3 5.1 64.4 90 572 547 5.8 4.5 3.6



Software IPO Pipeline

32

Note: In a typical IPO process, the offering progresses through three key milestones: the initial filing of the S-1 (prospectus; F-1 for foreign companies); an amended version of the S-1 following comments from the SEC; and

pricing the offering and issuing shares to the public market.

($ millions)

Company Stage Ticker IPO Date Range Price First Filing Date Revenue (TTM) Net Income (TTM)

Gigamon Priced GIMO 06/11/13 $18 - $20 $19.00 07/13/12 $106 $7

Marketo Priced MKTO 05/16/13 $11 - $13 $13.00 04/02/13 $66 ($37)

Tableau Software Priced DATA 05/16/13 $28 - $30 $31.00 04/02/13 $143 ($4)

Cyan Priced CYNI 05/08/13 $10 - $12 $11.00 04/04/13 $108 ($22)

Covisint SEC Review COVS n/a n/a n/a 05/14/13 $91 ($6)

Reval Holdings SEC Review RVAL n/a n/a n/a 03/30/12 $47 ($19)

Blackstratus S-1 Filed BLKS n/a n/a n/a 04/13/12 $9 ($1)

Trustwave Holdings Postponed TWAV n/a n/a n/a 04/21/11 $121 ($1)



Software Private Capital Raise Activity: 2Q 2013

33

($ millions)


Close Date Company Participating Investors Description Amount

06/28/13 Insightera Glilot Capital Partners, Lightspeed Venture Partners, Opus Capital B2B marketing management $7

06/26/13 Metacloud Canaan Partners, Storm Ventures OpenStack infrastructure as a service $10

06/25/13 Hortonworks Benchmark Capital, Index Ventures, Tenaya Capital, Yahoo! Scalable distributed processing and data management $50

06/25/13 Kony Solutions Telstra Ventures Mobile application development platform $18

06/25/13 MY1LOGIN Ltd. Scottish Enterprise, TRI Capital Ltd. Cloud-based password management $1

06/25/13 Neohapsis n/a Governance, risk and compliance applications $5

06/20/13 Firebase Flybridge Capital Partners, Union Square Ventures Cloud database for applications $6

06/19/13 Orion Security LSP Ben Franklin Technology Partners Fleet management and analytics n/a

06/13/13 Encap AS Alliance Venture, Proventure Seed Mobile authentication $2

06/12/13 GoodData Andreessen Horowitz, General Catalyst, Next World Capital, Tenaya Capital Big data analytics SaaS $22

06/11/13 BrightEdge Technologies Altos Ventures, Battery Ventures, Illuminate Ventures, Insight Venture Partners, Intel Capital Search engine optimization and analytics SaaS platform $43

06/11/13 Compass Quality Insight Bain Capital Ventures, X/Seed Quality assurance and testing $2

06/07/13 Dataminr Deep Fork Capital, GSV Capital, IVP, Venrock Real-time social media analytics $30

06/07/13 SpaceCurve Divergent Ventures, Reed Elsevier Ventures, Triage Ventures Real-time analytics for spatial and graph datasets $10

06/07/13 Zettics n/a Mobile carrier and market analytics $7

06/05/13 Namely Bullpen Capital, Lerer Ventures, True Ventures Talent management for the advertising sector $3

06/04/13 Digabit n/a Publication portal for technical documentation $2

06/04/13 Kenandy Kleiner Perkins, Lightspeed Venture Partners, Salesforce.com, Wilson Sonsini Social manufacturing management application for the cloud $33

06/03/13 Quarri Technologies n/a Content security application for data loss prevention $1

06/03/13 Zetta Foundation Capital, Industry Ventures, Sigma West Off-site enterprise data protection storage as a service $8

05/31/13 Certica Solutions n/a Compliance and regulatory reporting for the public sector $8

05/31/13 Health Care DataWorks MemorialCare Innovation, Cedars-Sinai Health System Business intelligence for the healthcare sector $5

05/30/13 Hotelerum Booking Services SL Caixa Capital Risc SGECR, Venturcap SCR SA Revenue management for the hotel sector $1

05/29/13 CloudByte Fidelity Growth Partners India, Kae Capital, Nexus Venture Partners Multi-tenant storage SaaS $4

05/29/13 LOC-AID Technologies Florida Growth Fund, H.I.G. Capital, Intersouth Partners Location-enabling mobile transaction platform $4

05/29/13 Numecent Holdings Ltd. T-Venture Holding GmbH Native application provisioning SaaS $14

05/27/13 Erply Ltd. 500 Startups, Index Ventures, Redpoint Ventures Point of sale and inventory management $2

05/17/13 WibiData Canaan Partners, New Enterprise Associates User data management and analytics $15

05/16/13 BonitaSoft SA Auriga Partners SA, CDC Entreprises, Serena Capital SAS, Ventech SA Open source business process management software $12

05/15/13 Atlantis Computing Adams Street Partners, Cisco Systems, El Dorado Ventures, Partech International Virtual desktop infrastucture and performance optimization $20

05/14/13 Cloudant Devonshire Investors Distributed database as a service $12

05/13/13 Radius Intelligence BBVA Ventures Sales and marketing analytics n/a

05/10/13 RJMetrics SoftTech VC, Trinity Ventures Business intelligence and data analytics $6

05/07/13 Axiomatics AB ALMI Invest, Coach & Capital Nordic 1 AB Identity and access management $7

05/07/13 Hedvig n/a Storage cloud infrastructure $10



Software Private Capital Raise Activity: 2Q 2013 continued

34

($ millions)


Close Date Company Participating Investors Description Amount

05/03/13 Apptio Andreessen Horowitz, Greylock, Janus, Madrona, Shasta Ventures, The Hillman Co. Management of the cost, quality and value of IT services $45

05/01/13 GridGain Systems n/a Java-based grid computing platform $9

05/01/13 LucidWorks Granite Ventures, Shasta Ventures, Walden International Embedded search development solutions $10

05/01/13 MetricStream Goldman Sachs Group Collaborative business process and compliance management n/a

04/30/13 Skytree Javelin Venture Partners, Osage Partners, United Parcel Service, USVP Big data analytics $18

04/26/13 Lex Machina Costanoa Venture Capital Partners, The Cue Ball Group, X/Seed, Yahoo! Intellectual property litigation analytics $5

04/25/13 Apigee In-Q-Tel APIs for secure cloud gateways n/a

04/23/13 Qubole Charles River Ventures, Lightspeed Venture Partners Big data integration and analytics SaaS $7

04/22/13 3scale Networks SL Costanoa Venture Capital Partners, Javelin Venture Partners API management SaaS $4

04/22/13 Gizmox Ltd. Atlas Venture, Citrix, IVC Venture Capital, Maayan Technology Ventures Cross-platform cloud and mobile application development tools $8

04/22/13 SERPs n/a Marketing management applications <$1

04/22/13 Translattice n/a Database as a service platform $10

04/18/13 DataLogix Holdings Costanoa Venture Capital Partners, General Catalyst, IVP, Sequel Venture Partners Advertising performance analytics $25

04/15/13 Good Technology n/a Mobile security and collaboration applications $50

04/09/13 Duda Mobile Pitango Venture Capital, Primera Capital Platform for automated mobile website conversion $10

04/05/13 MarketShare Partners Elevation Partners, FTV Management Company Enterprise market analysis applications $28

04/04/13 Kaazing New Enterprise Associates Development platform for browser-based communication applications $15


Advisory Services and Selected Transactions

Shea & Company Overview

35

Mergers & Acquisitions

Buy-side and sell-side M&A advisory

Divestitures

Restructuring

Private Placements & Capital Raising

Later-stage venture and growth equity

Recapitalizations

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Corporate Strategy

Strategic corporate development advisory

Fairness opinions

Selected Transactions Shea & Company has advised on billions of dollars of software transactions

Shea & Company is a software-focused investment bank that believes focus underpins success, and

success is measured by the outcomes we achieve with our clients

Shea & Company served as the exclusive

financial advisor to ProfitLogic

has been acquired by


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financial advisor to Wavelink



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(NASDAQ: PVSW)


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has received an investment from


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2013 q2 quarterly software market review - shea & company

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