founded in 1991 -...

Deep domain expertise in three inter-related sectors and broad industry networks

A market-leading corporate finance advisory firm

Founded in 1991

Entrepreneurial and owner-managed

40 person team; 250+ completed transactions

Broad global network

Creative solutions

Senior level focus on every transaction

with global reach

1

About Results International

http://www.google.co.uk/url?sa=i&source=images&cd=&cad=rja&docid=DFQYiv0ak9F7FM&tbnid=JC0hUqObSsXtIM:&ved=0CAgQjRwwAA&url=http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&item=45709189634603&ir_client_id=687&ei=XFtMUracJemM7QaDtIHgCg&psig=AFQjCNEyyjGJ5RmA-3O_m4xWlR5jBhRVwA&ust=1380822236675855http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Xnpv6mT1mXrNHM&tbnid=3pJvLIYwfhFInM:&ved=0CAUQjRw&url=http://my.opera.com/community/opera/buttons/&ei=NuDXUv-XB8am0QXpzoGIBw&bvm=bv.59568121,d.bGE&psig=AFQjCNE6m80XE3hdbm-4Akuss3EvthcY7Q&ust=1389965726223087http://www.covance.com/index.phphttp://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=c0RRud0PBBv66M&tbnid=_v7sGUY1JN5xDM:&ved=0CAUQjRw&url=http://weijiblog.com/2010/03/42-merck/&ei=sEjUUdHsIcSJhQfd_ICgDw&bvm=bv.48705608,d.ZG4&psig=AFQjCNH22HylAPJvqj1KeOfdNdZOwjzjUQ&ust=1372953090294243

60

70

80

90

100

110

120

130

Mar 14 Apr 14 May 14 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15

Healthcare IT - Europe Healthcare IT - US Biopharma IT Generalists NASDAQ Composite Index FTSE 100

Q1 2015 Performance

Healthcare IT Europe 5.2%

Healthcare IT - US 7.1%

Biopharma IT -0.5%

Generalists -2.3%

HealthTech(1)

6.6%

Results International Global HealthTech Indices

Note: Based on share prices as at 31 March 2015 Note: Indices weighted by market capitalisation Note: Biopharma IT index predominantly reflects Veeva performance since IPO in October 2013 Note:

(1) Excludes Generalists

Sources: Capital IQ and Results analysis 2

17.8%

7.3%

16.7%

1.6%

-6.9%

2.6%

HealthTech: Share Price Performance

Note: Share price performance as at 31 March 2015 Note: *Last 12 Months & Q1-2015 reference dates adjusted to first trading day post IPO for Inovalon Holdings (11-Feb-15) Sources: Capital IQ and Results analysis

3

47.4%

33.3%

13.3% 7.9%

1.9%

28.1% 30.2%

6.3%

-25.5%

11.9%

-33.7%

-23.8%

-63.4%

-5.3% -5.6%

-16.0%

83.2%

-4.4% -9.8%

-2.8%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Last

12 M

on

ths

34.9%

-0.7%

8.0%

-3.7%

12.9% 9.0%

13.3%

5.6%

-18.1%

11.9%

-6.3% -4.8%

-33.7%

2.5%

-14.5% -10.7%

25.6%

-3.3%

2.7%

43.8%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Q1-2

015

Healthcare IT Europe Healthcare IT US Biopharma IT

HealthTech: Recent IPO Performances

4

Note: Calendarised to December year end; $ millions, except share price data Note:

(1) Current increase from IPO price; Market data as of 31 March 2015

Note: (2)

Castlight projecting negative EBITDA for CY2015 Source: Capital IQ

Company IPO Date Description Raised Indicative Price

Range ($)

IPO Price

($)

Increase vs.

range

Day 1

Increase

Current

Increase(1)

Current

EV

EV / Revenue

2015E

EV / EBITDA

2015E

Feb-15 Cloud-based healthcare

data analytics software 600.0 24.00-26.00 27.00 8.0% 0.0% 11.9% 4,597 10.6x 29.2x

Apr-14 Healthcare information technology and services

1,300.0 18.00-21.00 20.00 2.5% 15.0% 35.4% 12,700 4.3x 13.8x

Mar-14 Healthcare enterprise management software

177.6 13.00-15.00 16.00 14.3% 148.8% (51.5%) 521 6.8x n.m. (2)

Dec-13

Software, hardware and services for the healthcare and energy sectors

199.7 n.a. 2.93 n.a. 20.1% 45.0% 281 2.9x 11.6x

Oct-13

Cloud-based CRM software for the biopharma industry

260.9 16.00-18.00 20.00 17.6% 85.8% 27.7% 2,959 7.6x 26.7x

NYSE

NYSE

LSE

NYSE

NasdaqGS

HealthTech: Valuation Benchmarks

5

EBITDA Margin 2015E EV / EBITDA 2015E

Revenue Growth (2015-16E) EV / Revenue 2015E

Note: EV = Enterprise Value; Financials calendarised to December year end Note: Median values reported; excludes negative multiples Note: See Selected Publicly Traded Companies (Slide 9) for details of companies included in each category Note: McKesson excluded from above analysis because majority of revenue is generated from pharmaceutical distribution Source: Capital IQ

4.2%

7.1%

10.0%

19.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Generalists Healthcare IT -

Europe

Healthcare IT - US Biopharma IT

28.2%

24.6%

21.7%

23.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%


Europe


4.0 x

3.1 x 2.9 x

6.8 x

0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

8.0 x


Europe


11.4 x 11.9 x 12.7 x

26.7 x

0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x


Europe


21

17

20

32

29

18

28 27

28

32

44

61

54

4

3

5

1

1

7

2 7 5

6

2

8

12

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

10

20

30

40

50

60

70

80

Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Healthcare IT Biopharma IT Healthcare IT Total Disclosed Deal Value Biopharma IT Total Disclosed Deal Value

HealthTech: Global M&A Activity

6 Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

Nu

mb

er

of D

ea

ls

Tota

l D

isc

lose

d D

ea

l V

alu

e (

$m

)

HealthTech: Selected Deals in Q1 2015

Date Buyer Target EV ($m) EV /

Revenue EV /

EBITDA Company description

Target Location

Mar-15 - - - Healthcare analytics and performance benchmarking software

Mar-15 - - - Practice management software for physiotherapists and rehabilitation clinics

Mar-15 - - - Cloud-based electronic medical record software

Mar-15 81.4 1.8x 15.0x Practice management, communication and electronic patient record software

Mar-15 - - - Business intelligence, performance analyisis and emergency room software for the healthcare industry

Mar-15 - - - Key Opinion Leader campaign optimisation software for the biopharma industry

Feb-15 70.0 - - Medical imaging software

Feb-15 - - - Administrative and invoicing software for GP clinics

Feb-15 - - - Employee credentialing and talent management software for the healthcare industry

Feb-15 17.0 1.0x - Electronic health record solutions for hospitals and mental health providers

Feb-15 - - - Pharmacy management software for long-term post-acute care

Jan-15 140.0 - - Cloud-based analytics, decision support and financial planning software for the healthcare industry

Jan-15 40.0 - - Cloud-based electronic health record and financial software for rural and community hospitals

Jan-15 - - - Cloud-based sales and marketing analytics software for the biopharma industry

Jan-15 65.0 - - Genomic analysis and bioinformatics software

Jan-15 - - - Electronic Clinical Outcome Assessments solutions for clinical trials

Jan-15 37.0 - - Medical imaging software

7

Note: Financials relate to the companies full fiscal year before the transaction took place Note: Enterprise Value (EV) = transaction value scaled to 100% shareholding plus net debt (includes minority interest) Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

HealthTech: Selected Fundraisings in Q1 2015

Date Company Type of round Funds

raised ($m) Investor participation Company description

Company headquarters

Mar-15 Seed - High-Tech Grnderfonds; Innovationsstarter Fund; Quotas Beteiligungs Tinnitus treatment mobile music application

Mar-15 Seed 0.7 Proxy Ventures UK Self-health and medicine management mobile app

Mar-15 Seed 0.3 - Genomic data sharing platform

Mar-15 - 2.0 Groupe Arnault; DR. KADE Pharmaherstelle; and an individual investor Female health mobile app

Mar-15 - 1.0 - Geriatric out-patient care support application

Mar-15 - 8.5 - Neuro-therapy software and hardware

Feb-15 - 9.9 - Diversified healthcare software vendor

Feb-15 Seed 2.5 Creathor Venture; Partech; Stephan Schamback; Heilemann Ventures; Atlantic Labs

Telemedicine application for dermatology

Feb-15 - 0.4 Oy Verman Ab; Integra Capital Partners Oy Ltd; Avohoidon Tutkimussaatio; WetRock Capital & Consulting Oy

Clinical decision support software for diagnostics

Feb-15 Series B 13.5 Amadeus Capital Partners Limited; Smedvig Capital Limited; Octopus Investments Limited

Patient eMarketplace for clinical trials

Jan-15 - 0.1 Rothenberg Ventures Clinical treatment applications for psychology

Jan-15 Seed 1.3 Invest PME SA; Alsace Capital Simulation software for drug discovery

Jan-15 Seed 0.1 DreamIt Health Medical photo sharing and management mobile app

Jan-15 - 1.2 Industrifonden Online platform for fat and muscle mass measurement

Jan-15 Series A 1.5 Capricorn Venture Partners; Participatiemaatschappij Vlaanderen NV Simulation software for cardiovascular procedures

Jan-15 - 0.6 - Mobile patient management/ engagement app

8 Sources: Capital IQ and Results analysis

Operating Metrics Valuation Metrics

Price % of 52 Market Total Net Enterprise Revenue Rev. Growth Revenue EBITDA

Company (31-Mar-15) Week High Cap Cash Debt Value CY2015 CY15-16 CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

Generalists with significant HealthTech exposure

Oracle 43.15 92% 195,729 43,777 (11,083) 184,646 39,008 2.6% 49.3% 48.8% 4.7 x 4.6 x 9.6 x 9.4 x

SAP 72.30 99% 88,315 3,369 8,390 96,705 21,499 5.0% 35.2% 35.1% 4.5 x 4.3 x 12.8 x 12.2 x

Thermo Fisher Scientific 134.34 97% 54,136 1,352 13,216 67,352 16,886 4.2% 25.1% 26.2% 4.0 x 3.8 x 15.9 x 14.6 x

EMC 25.56 83% 51,043 8,321 (1,197) 49,846 25,990 6.1% 27.5% 27.3% 1.9 x 1.8 x 7.0 x 6.6 x

Thomson Reuters 40.55 99% 32,221 1,179 7,729 39,950 9,845 2.7% 28.2% 29.4% 3.2 x 3.1 x 11.4 x 10.6 x

Computer Sciences Corporation 65.28 89% 9,424 2,393 356 9,780 12,185 1.4% 17.6% 18.1% 0.8 x 0.8 x 4.6 x 4.4 x

Aspen Technology 38.49 80% 3,418 231 (231) 3,187 461 9.6% 43.0% 43.2% 6.9 x 6.3 x 16.1 x 14.6 x

25th percentile 2.7% 26.3% 26.7% 2.6 x 2.5 x 8.3 x 8.0 x

Median 4.2% 28.2% 29.4% 4.0 x 3.8 x 11.4 x 10.6 x


Healthcare IT - Europe

CompuGroup Medical 28.83 92% 1,434 23 371 1,805 587 7.1% 22.2% 23.7% 3.1 x 2.9 x 13.8 x 12.1 x

EMIS Group 12.83 94% 809 7 25 834 237 7.0% 29.8% 30.2% 3.5 x 3.3 x 11.9 x 10.9 x

Cegedim 33.84 92% 473 44 550 1,024 539 2.8% 19.1% 19.4% 1.9 x 1.8 x 9.9 x 9.5 x

Servelec Group 4.25 87% 290 6 (9) 281 98 7.9% 24.6% 25.3% 2.9 x 2.7 x 11.6 x 10.5 x

Craneware 7.99 96% 216 36 (36) 179 50 8.2% 30.4% 30.7% 3.6 x 3.3 x 11.9 x 10.9 x


Median 7.1% 24.6% 25.3% 3.1 x 2.9 x 11.9 x 10.9 x


Healthcare IT - US

McKesson 226.20 97% 53,558 4,587 7,340 60,898 186,620 4.3% 2.7% 2.9% 0.3 x 0.3 x 12.1 x 10.9 x

Cerner 73.26 98% 26,336 1,421 (1,291) 25,045 5,044 21.0% 31.3% 33.4% 5.0 x 4.1 x 15.8 x 12.3 x

IMS Health 27.07 95% 9,297 390 3,403 12,700 2,943 9.6% 31.4% 31.9% 4.3 x 3.9 x 13.8 x 12.4 x

athenahealth 119.39 71% 4,661 115 94 4,754 920 21.4% 17.4% 17.8% 5.2 x 4.3 x 29.8 x 23.9 x

Inovalon Holdings 30.21 90% 4,460 163 138 4,597 436 21.7% 36.2% 37.2% 10.6 x 8.7 x 29.2 x 23.3 x

Allscripts Healthcare Solutions 11.96 65% 2,163 53 523 2,686 1,434 6.1% 16.7% 18.3% 1.9 x 1.8 x 11.2 x 9.7 x

MedAssets 18.82 74% 1,139 12 878 2,016 759 4.5% 30.2% 30.5% 2.7 x 2.5 x 8.8 x 8.3 x

Quality Systems 15.98 85% 963 125 (125) 839 515 6.8% 16.1% 17.2% 1.6 x 1.5 x 10.1 x 8.9 x

Castlight Health 7.76 31% 713 192 (192) 521 76 58.4% (91.9%) (44.0%) 6.8 x 4.3 x n.m. n.m.

Healthstream 25.20 78% 709 121 (121) 588 203 14.6% 13.7% 15.4% 2.9 x 2.5 x 21.3 x 16.4 x

Computer Programs & Systems 54.26 80% 614 34 (34) 580 199 6.8% 24.8% 26.6% 2.9 x 2.7 x 11.7 x 10.3 x

Merge Healthcare 4.47 95% 436 42 184 619 248 10.0% 21.7% 23.7% 2.5 x 2.3 x 11.5 x 9.6 x


Median 10.0% 21.7% 23.7% 2.9 x 2.7 x 12.7 x 11.3 x


Biopharma IT

Veeva Systems 25.53 76% 3,356 398 (398) 2,959 388 24.2% 28.5% 29.2% 7.6 x 6.1 x 26.7 x 21.0 x

Medidata Solutions 49.04 84% 2,777 273 (32) 2,745 401 19.8% 23.5% 25.3% 6.8 x 5.7 x 29.2 x 22.6 x

Instem 2.83 95% 35 2 - 28 21 8.7% 16.6% 18.3% 1.5 x 1.4 x 9.3 x 7.8 x


Median 19.8% 23.5% 25.3% 6.8 x 5.7 x 26.7 x 21.0 x


EBITDA Margin

HealthTech: Selected Publicly Traded Companies

9

Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 50x EV / EBITDA; Net debt includes minority interest Note:

(1)McKesson excluded from Healthcare IT US summary analysis above because majority of revenue is generated from pharmaceutical distribution

Note: (2)

Castlight Health has run a negative gross margin during a period of rapid growth due to additional implementation costs associated with launching new customers Note:

(3) Cegedims revenue growth and EBITDA multiples reflect the divestiture of its Information and CRM solutions assets to IMS Health in June 2014

Source: Capital IQ

(1)

(2)

(3)

27 Soho Square, London, W1D 3AY

t +44 20 7629 7575 | f +44 20 7629 2233

www.resultsig.com

Chris Lewis

Managing Director

Di: +44 (0) 20 7514 8236

E: [email protected]

10

Richard Latner

Manager

Di: +44 (0) 20 7514 8241


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