integration: the $100 billion opportunity no one wants to talk about

Integration: The $100-Billion Opportunity No One Wants to Talk About

Fred Joseph, Partner

Ben Howe, CEO

Scott Card, Partner

Rob Buxton, Partner

Who Wants to Be the “King of Pain”

2

Enterprises are becoming increasingly reliant on a myriad of different applications that are critical to daily backend and frontend operations

The widespread use of APIs is viewed as the current balm to sooth the pain of integration – they are the components that will need to be integrated and connected by iPaaS solutions

Containers and containerization will play an increasing role over the next few years, componentized integration is coming

Security concerns have largely been ignored by the integration space to date, which needs to change

There have been some major API management acquisitions by large app-centric companies – they will eventually need to buy pipes that go with these head-ends

We are approaching the point where there is a need to manage these APIs for full-fledged integration, and these active acquirerswill need to deliver more robust integration solutions for their clients – 36% of organizations currently use +3 integration platforms

Application and data integration are critical operational building blocks in organizations of all sizes Large, global, sophisticated enterprises count on the seamless integration of information between applications so they can

improve decision making and not be slowed down by bottlenecks or a lack of intercommunication

Due to affordable solutions, SMBs are now able to participate in the integration revolution that was once reserved for large enterprises; SMBs need effective integration to remain competitive with larger players

The Critical Question for integration / iPaaS vendors: how to get paid for the difficult work that they are performing

› Companies continue to buy applications and then realize they have an integration project, but no budget remaining for implementation

Telecom continues to be much more efficient than Datacom at movement and integration – what can Datacom learn?

Rise of the MDISP – will developer skills gap, SaaS application-driven change, security and compliance concerns drive an outsourcing wave?

As the SaaS Tsunami Hits the Beach, Modern Integration Needs to Keep Up

April 2013

$155M

Sept 2016

$555M

High-Profile API Acquisitions

Source: Aberdeen Group

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Growth Across All Major Integration Markets

Source: MarketsandMarkets, Gartner, Transparency Market Research, Aberdeen, Forrester

iPaaS market is expected to be $3.0B by 2021

CAGR 41.5%

$528M in 2016

84% of organizations plan to replace their on-premise middleware in the next

4 years – 70% are going cloud-based

Tailwinds: Increased awareness among enterprises, continued adoption of

cloud computing, scalability, speed, cost effectiveness, agility

Enterprise application integration market to reach $33.6B by 2020

CAGR 7.1%

$25.5B in 2016

35% of organizations run over 200 business applications – there is a critical need

for all of these applications to be integrated

Tailwinds: Increased demand for real-time data access, higher volume of data

across enterprises

Data integration market is expected to be $12.2B by 2022

CAGR 13.7%

$6.4B in 2017

Data integration between applications is the IT department’s #1 pressure to

shift integration platforms

Tailwinds: Increased adoption of cloud computing, high demand for tools

enabling the extraction of business insights from numerous data sources

$0.5B

$3.0B

0.0

1.0

2.0

3.0

$4.0B

2016 2017 2018 2019 2020 2021

$6.4B

$12.2B

4.0

8.0

12.0

$16.0B

2017 2018 2019 2020 2021 2022

$25.5B

$33.6B

20.0

24.0

28.0

32.0

$36.0B

2016 2017 2018 2019 2020

Forrester estimated global 2016 IT spend on middleware at $145B, supported by multiple

booming markets and significant mature markets that are ripe for disruption

4

Integration Ecosystem

DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and would like to be

added for future publications, kindly shoot us a note at [email protected] and we would be happy to consider.

API MgmtCrossover

Integration*

Big Data / Data Integration

Application Integration

iPaaS

“Intragration”

EDI / B2B Integration ESB

Low-Code

IoT

*These companies have

strong offerings from at least

two of the other categories

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Defining the Integration Ecosystem

Source: Gartner, TechTarget

Integration: Solutions that allow end-users to access data and functionality from separateindependent databases or applications through a single user interface

“Intragration”: Integration solutions built specifically to make it easier for applications withina Company’s specific ecosystem to work together

Application Integration: Allow applications to communicate and share informationregardless of API or code-language

Data Integration: Provide external access to data stored in multiple independent databasesregardless of source formatting

EDI / B2B Integration: Involve the automation and optimization of business processes thatextend outside company boundaries to reach third parties, sometimes using EDI format

Integration Platform as a Service (iPaaS): Provide a cloud-based platform to develop,execute, and govern integration flows between cloud-based and on-premise applications anddata

Low-code Integration: Utilize ready-made connectors and drag-and-drop GUIs to limit theneed for hand-coding and IT-involvement

Enterprise Service Bus (ESB): Provide a platform to develop, execute, and governintegration flows between on premise applications and data

Big Data Integration: Provide data integration to customers with memory intensive data setslarge enough to require non-traditional data processing

API Management: Allow developers to publish, monitor, update, and control connectors toapplications for APIs throughout their lifecycle in a single scalable and secure location

6

In order to get the most out of applications, they need to be able to communicate with a common language that connects them

It requires an incredible amount of overhead for developers to learn all of the unique languages of each application

Integration solutions are the “translators” behind the scenes allowing these applications to work together

Application Integration

› Integration is the medium that allows different applications to share information and incorporate a dynamic workflow

Seamlessly connects CRM, eCommerce, ERP, finance, cloud, marketing and other services applications

Many integration platforms exhibit the same advantageous characteristics of SaaS applications

Multi-tenancy, agile, scalable, quickly deployed

Out-of-the-box connectors ready to use

Containerization fractures application architecture

Package and deploy applications without a guest OS

Develop microservices independently and integrate them to form one functioning application

Representative Companies

Edge Technologies offers AppBoard, a data integration and visualization platform that enables users to build

interactive dashboards through a graphical configuration interface

Tray.io offers a platform that makes it easy for anyone to build and share SaaS integrations using a drag-and-drop

workflow editor

Source: Tech Target, MuleSoft

Suppliers

Distributors

Financial Institutions

Gov’t Agencies

Partners

Warehouses

7

EDI / B2B Integration

Source: Gartner, SPS Commerce, Axway


Adeptia offers business data and application integration solutions including Adeptia Connect iPaaS, which allows

users to register, explore your published APIs, and connect with them through an easy self-service platform

SPS Commerce offers a cloud-based B2B integration product suite that enhances the way suppliers, retailers,

distributors, logistics firms, and other trading partners manage and fulfill orders

Business processes and workflows go beyond a Company’s four walls

What started as widespread use of electronic data interchange (EDI) has evolved over the years to utilize the internet and web services

Provides greater visibility into the entire operation and ensures all aspects of the business process workflow are on the same page

Legacy systems, new innovation, and increasing complexity all drive B2B integration demand

Companies struggle to replace legacy systems that have had custom integration features built in over the years

B2B Integration ensures information gets to the right place accurately and on-time

Driven by specific monetized business needs

Increasing complexity of businesses’ operations means that they continue to struggle to fulfill their integration needs in house, and look for outsourced solutions

25 year old infrastructures – do cloud applications finally cause a need for a rewrite?

WSO2 provides Enterprise Integrator, an open source enterprise service bus that mediates and transforms data

between legacy systems, SaaS applications, services, and APIs, providing the fundamental capabilities of a

connected SOA architecture

Seeburger offers their Business Integration Suite (BIS), a central platform for all integration activities that enables

users to perform B2B, API, and MFT integrations8

Enterprise Service Bus (ESB) – The Last Wave – Made 3 Tier Architecture Productive

Source: TechTarget, elastic.io

Enterprise Service Bus solutions were pioneers in the integration landscape

ESBs were some of the original software platform that were used to reduce enterprise application integration complexity

iPaaS and ESBs complement each other to help drive innovation – iPaaS can be used to augment legacy ESB solutions

ESBs are middleware tools that distribute work among connected components of applications

Key element that holds together the complex internal architectures of large enterprises

Simplifies the process of adding or changing the components of an application

Improves load balancing

Provides failover support

ESBs were initially developed for connecting with legacy on-premise applications

With widespread proliferation of SaaS, ESBs have evolved and can now support APIs and be cloud-enabled

iPaaS has emerged as the more popular solution recently because of its inherent structural advantages and wider range of use cases

iPaaS multi-tenancy can reduce infrastructure and admin costs by up to 40%

Ad-hoc integrations need the speedy, agile deployments without having to go through IT department that iPaaS can offer

ESB does not work well outside of an organization’s four walls

iPaaS has greater applicability for IoT and mobility


iPaaS is starting to consume the ESB Market – how far will it go? Today it is driven by costs and

productivity improvements however the new solutions often face government, compliance, and

security concerns that they are unprepared to solve

9

iPaaS or “cloud-based integration” provides the background architecture for delivering software without the requirement of simultaneously building and supporting server environments

Provides full lifecycle control over applications and services with all platform management happening in one place

› Combines multiple platforms by connecting applications and resources to create a consistent structure

› Must be able to integrate private and public clouds as well as on-premise applications and data sources

Deployment solutions are available to ensure the iPaaS solution gets up and running successfully, while monitoring and management solutions help it stay that way

› “Elastic Integration” allows for scaling servers up and down depending on workloads to maximize efficiency

iPaaS has become the “integration tool of choice” in recent years as it offers dynamic integration for cloud-based systems of engagement

Ideal for advanced SoEs that have ever-changing backend interfaces

Results in faster time-to-value with real-time updates

There are multiple ways to provide these cloud-based integration solutions

Competing methodologies between companies that use open-source components vs. build their own

› Talend and MuleSoft leverage open-source while Jitterbit and Boomi own the code for their integration platforms

Developed out of a market demand to bring together clouds, big data, and devices into a new IT infrastructure

Simplifies increasingly complex IT infrastructure

Dynamic integration of applications

Scalable solution with a quicker time-to-market


Jitterbit is an API transformation company that accelerates innovation by combining the power of APIs and

integration. The Jitterbit API integration platform enables companies to rapidly connect SaaS, on-premise and cloud

applications and instantly infuse AI into any business process

Scribe provides data integration software platforms to help customers integrate data in the cloud, on-premise, or a

hybrid mix

iPaaS – The Current Wave How the Internet Connects and Consumes ESB

Source: Tech Target, Scribe

10

iPaaS Market Growing at an Impressive Rate

Cloud applications have a different set of requirements than on-premise applications, thus a new class of connector and style of integration is born

Markets and Markets estimated the enterprise iPaaS market at $528 million in 2016, continuing to grow over 40% per year reaching $3B by 2021

iPaaS is a relatively nascent software sector that is still developing industry-altering technology

› Shown promising growth in recent years and not expected to slow until after the market hits $1B mark

iPaaS is the newest niche integration market and is growing the fastest relative to its peers, but other integration markets are much larger and more mature

Message-oriented middleware, managed file transfer, ESB all grew at less than 10% in 2016

The mature integration market is massive, and iPaaS can grow by augmenting these existing integration solutions, resulting in more integration vendors entering the iPaaS market

› Start-ups are choosing to focus on iPaaS- related point-solutions to take advantage of the booming industry

Informatica is the current market leader, claiming ~20% market share, but Gartner is already aware of 70 iPaaS vendors, many of which were too small to include in its most recent report

› Relatively fragmented industry with plenty of point solutions finding their niche and continuing to grow

Favorable market conditions are aiding growth of booming iPaaS industry

iPaaS solutions are no longer too expensive for SMB customers, resulting in a larger potential market

As IoT matures and businesses become more dependent on connected devices, there will be increased demand for a dynamic, cloud-based integration solutions

Mobility trends will lead to convergence of API management and mBaaS industries

MSPs, systems integrators, and application vendors are developing products and services that rely on iPaaSintegration

Fulfills more pressing customer needs

› Agile development allows for greater flexibility when integrating clients in on-premise software

› Gives companies an increased ability to outsource

Source: Gartner, Markets and Markets

11

Low-Code Changing the Integration Game

The concept of “Low-code” can be applied to many software sectors and have different implications

“Low-code” empowers business users and non-IT personnel to work directly with backend systems, requiring little or no coding ability

Adjustments can be made in minutes, rather than weeks, making it an ideal integration solution for constantly changing business environments

Empowers “citizen developers” and aligns decision makers in enterprises directly with the software they depend on

iSaaS (integration-software-as-a-service) is similar to iPaaS, but where integration flows are prebuilt, leaving only configuration up to the user

In the case of integration, low-code reduces the need for an IT department to integrate enterprise applications and workflows

Often includes drag-and-drop functionality for an easily customizable backend integration that allows multiple applications to communicate in a desired manner

For SMBs with limited IT resources, a low-code integration system can be a necessary self-serve solution

Low-code integration offerings mitigate user-error, but may not completely eliminate IT departments

Security, data quality, governance, and workflow management are complex issues that are critical to business performance and are often not fully addressed in low-code solutions

Low-code connectors only exist for the most common cases and do not scale with the rapid growth of data sources and new apps

Citizen integrators run the risk of doing more harm than good if business decisions are based upon poorly integrated data – IT support can help ensure quality


Zapier offers a cloud based SaaS integration tool that enables non-technical users to connect together web

applications using “point and click” interfaces

Apiant offers an API iPaaS for Citizen Integrators and Integration Specialists, with an Assembly Wiring Editor that

lets users quickly integrate standard APIs without coding

Source: TechTarget, CloverETL

Denodo offers a data virtualization solution which provides business agility by integrating disparate data from any

enterprise source, big data and cloud in real time

CloverETL is a Java-based data integration software for rapid development and automation of data transformation,

data cleansing and data quality

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Data Integration

Source: Gartner, CloverETL

ETL

Mediated

Schema


Data integration addresses the structural, semantic, and syntactical conflicts that come with combining diverse datasets

Hand-coding is still a common method of data transfer among enterprises despite existing data integration tools

As companies look to adopt business intelligence and analytics platforms, data integration serves as the underlying engine fueling these platforms, increasing existing asset value

Key data integration challenges: performance, speed, orchestration into a master workflow, monitoring, supportability

Data integration is the backbone of a good analytics platform needed to make intelligent business decisions

Central data warehouses can return outdated data if queries are sent before the extract, transform, load (ETL) process re-executes a synchronization

Queries over a mediated schema allow direct communication with data sources providing real time data

“Wrappers” or adapter patterns act as a converter that allows the source data to be read by external interfaces without translating the original data

AI and metadata management allow previously unusable sources to provide valuable data

Intelligent data processing and management creates additional use cases for data integration such as NLP and narrative sciences

V

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R

A

C

I

T

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Attunity offers a range of big data integration solutions that fall into three broad solution areas: data availability, data

movement, and data delivery

Apervi offers Conflux, a web-based big data integration and orchestration platform providing full support for batch,

streaming and micro-batch data pipelines

13

Big Data Integration

Integrating big data requires an additional layer of complexity

Many big data integration solutions are compatible with popular databases such as MongoDB and Cassandra, which often use the Hadoop platform

Difficult projects with high failure rate due to inherent complexities of big data

Need to tap into the massive data repositories in big data processing engines

Big data integration platforms connect enterprise applications with these repositories so Companies can easily extract insight through analytics and perform operations without manually uploading data

Many Hadoop plug-ins exist, but few are true data integration solutions capable of managing workflows between multiple data sources

Critical capabilities that are necessary for integrating big data:

Enterprise-grade solution with sufficient security and monitoring

Real-time ingestion for the most up-to-date analytics

Proper governance to avoid leakage

Special attention to data veracity ensures data is useful to end-

usersSource: Simba, Gartner, IBM


V

A

R

I

E

T

Y

V

E

L

O

C

I

T

Y

V

O

L

U

M

E

Common Big Data Databases

4 V’s of Big Data

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Data Lakes

Data lakes provide schema-less storage for structured and unstructured data (both internal and external) in one centralized location and serve as an extension of data integration

No filtering and little-to-no transformation is done to the data before entering the lake unlike the data warehousing process, saving cost and allowing data of every form and source to be stored in one location

Data lakes are ideal for data landing and staging

› Users push sources of data to data lakes to perform data quality and management

Data lakes remove a degree of separation normally introduced by the data warehousing process, giving data scientists access to the unadulterated data

Deployed on existing big data vendor platforms such as Hadoop, AWS, Microsoft Azure, or NoSQL

Source: TDWI, BigData Dimension

Advanced business intelligence and data analytics

tools were the keys that unlocked data lakes

Insights could not be extracted from an unorganized

and cluttered storage space

› Data warehousing was a necessary first step before feeding any analytics software

Modern analytics can process the more raw data

stored in a lake and gain better insight without the

warehousing step

As concerns about the lack of data governance

subside, integration emerges as a top priority

32% of TDWI survey respondents cite a lack of

existing data integration tools as their biggest concern

in adopting data lake storage

Integration is one of the top two problems that teams face when developing high-quality APIs

Agile, continuous integration is crucial with APIs that are constantly changing so organizations do not have to frequently restructure their backend whenever they update APIs

Improvements in enterprise integration of APIs will continue to drive the API industry’s growth

› 28% of respondents to a SmartBear survey consider enterprise integration as the factor that will drive the most API growth over the next two years

The big players have already commoditized the API management market – if API Management becomes the dominate metaphor for integration it could in-turn commoditize other backed integration solutions

Tyk is an open source API management platform featuring an API gateway, analytics, developer portal and

dashboard

Nevatech is an innovative provider of SOA and API Management infrastructure and tools for on-premises, cloud and

hybrid environments

15

API Management

API management answers a different set of questions raised by the rapidly growing API environment

APIs can be managed much like data and application messages are in an iPaaS Platform

› Many iPaaS vendors are also a leader in both API management and iPaaS

› For Companies like Boomi, MuleSoft and Jitterbit, participating in API management is a way to eat into the ESB business

API managers provide a central platform where developers are able to manage all of their APIs in one central location

› Capabilities include managing users, monitoring and analyzing traffic, implementing governing policies and security measures, and API monetization, versioning, and throttling

Source: SmartBear


MobileMobile workforces are more prevalent than ever,

adding an additional layer of complexity for IT

departments

Global mobile workforce expected to increase to

1.87 billion people, or 42.5% of the total workforce

by 2022

When out of the office, employees expect to have

the same connectivity and access to applications

that they would have if they were in the office

Need for secure, consistent data flow from all of the

applications to the thousands of mobile devices that

are used in large enterprises

Large enterprise software vendors now provide

highly functional mobile applications

For these applications to work at their full capacity,

they need to be seamlessly integrated into a mobile

enterprise network

Cloud-based iPaaS solutions have the scalability

and capability to meet increased data volume,

positioning it well as a leading mobile integration

solution

IoTProjected 25B connected “things” by 2020, $14.4

trillion overall market by 2022 highlights the

lucrative IoT integration opportunity

Ample funds available for IoT Companies to spend on

adjacent solutions to integrate their devices

IoT devices need to be integrated into their relevant

enterprise applications so they can be leveraged to

their full potential

Company’s IoT integration capabilities separates

top integration frameworks from the competition

45% of top organizations have IoT integration

requirements compared to the 26% industry average

iPaaS meets all of the requirements for an

integration solution to be applicable to IOT Real-time / low latency

Instant access to data

High-performance applications

Horizontal scalability

Communicate externally

16

iPaaS Use Cases – IoT and Mobile

Source: Cisco, RCR Wireless, Aberdeen

17

Integration Security Considerations

Enterprise-crippling security issues are still on the rise with frightening frequency and consequences

Ransomware attacks have become mainstream

Nearly 1.4 billion data records were lost or stolen in 2016 – up 86% over the previous year

Companies lose >$150 on average each time a single record containing sensitive information is lost or stolen

As applications become more integrated, the consequences of a security threat become greater

Data integration outside of a firewall is a major concern for clients utilizing cloud-based solutions

Traditional network perimeter security technologies are no longer sufficient as the foundation of enterprise information security strategies

Securing the data itself is the most effective solution, not firewalls

Widespread integration changes how organizations have to think about security

Source: Linthicum Research, Breach level Index 2016, Ponemon Institute Cost of a Data Breach Study

Integration between cloud based apps can take place in the secure iPaaS cloud, reducing network exposure to cloud internet exchanges

The unique positioning and structure of iPaaS make it the ideal place to implement security and governance protocols

iPaaS provides a secure proxy for communications involving on-premise applications

Connectors are independent from each other and can be upgraded or changed without overhauling the entire security platform

Maintaining more security measures and governance policies in one place is beneficial

Security measures can be controlled by the iPaaS vendor or qualified third party through a unified integration platform

No need to maintain multiple integration tools and their respective security measures

Simplifies complex security systems to make maintenance and monitoring more effective

18

Integration Requires a High Degree of Compliance

In highly regulated industries such as financial services or healthcare, integration can be crucial in helping customers comply with regulations

Compliance regulations are constantly changing and integration solutions need to keep up

It is a major selling point for providers that can promise improved compliance with their solution

Goes hand-in-hand with data security issues

› Must reduce risk associated with PCI, PHI, PII or other sensitive data

› Large fines will continue to increase as a result of impending European GDRP regulations going into effect May 2018

Often requires industry or context-specific knowledge

Rising popularity of industry-specific integration solutions that are built for the inherent nuances that come with a vertical

For example, patient medical records have unique different compliance needs than social security numbers

› All types of personal data needs to remain secure, but a working knowledge of the regulations associated with each will help avoid unnecessary penalties

Source: Liaison, Deloitte

Movement to the cloud and widespread SaaS applications are adding an extra layer of compliance complexity

Increased data transfer between a greater number of applications puts additional burden on administrators to ensure compliance

Must be easily auditable to ensure no breaches

› Integration solutions provides greater visibility into data flows

Compliance is becoming increasingly complex and organizations are looking for third parties to assist

Significant portions of budgets are set aside to ensure and improve compliance, leaving ample money up for grabs for integration solution providers

› Over a third of compliance budgets are between $1M and $10M annually

In a world where the boundaries of the organization are falling away and security is migrating to the

data level, perhaps integration/data management becomes the control point in the organization

Market Transaction Case Study

Provides enterprise software that allows

organizations to collect, integrate, sort, and

distribute more data in less time, with fewer

resources and lower costs

Offers disaster recovery and migration

software for mainly IBM I and AXI OS to

protect data, minimize downtime & maximize

resources

EV: ND

Oct 2015

$1.26B

July 2017

Syncsort and Vision were both active under Clearlake’s ownership, consistent with industry

consolidation the platform strategy used by many PE-players in today’s M&A landscape

In 2016, Syncsort made the transformational acquisition of Trillium Software for $112M and tuck-in acquisition of

Cogito, resulting in revenue and EBITDA growth of over 60%

Vision Solutions spun off Double-Take Software to Carbonite in early 2017 for $68M

Deal Rationale

Vision’s IBM expertise is seen as a logical extension of Syncsort’s business strategy

Synergies result in an industry leader for solving large enterprises’ Big Iron to Big Data challenges

Source: Clearlake Website, 451 Research

EV: $350

May 2016

19

20

Boomi Acquisition: Key in Defining Integration Space

Rationale:

“Today's announcement represents another step by Dell

to build a technology portfolio for growing businesses

seeking the benefits of web-based computing while

addressing one of the top barriers to cloud adoption -

managing and integrating cloud-based applications with

existing applications and databases” – Acquirer Press

Release

Boomi: Enterprise Integration Platform as a Service

Provides on-demand application integration solutions with its

flagship product AtomSphere, an Integration Cloud that

connects different combinations of SaaS, PaaS, cloud, and

on-premise applications. It offers its solution for business-to-

business applications and data integration initiatives; and

Salesforce, NetSuite, Taleo, SAP, Dynamics Great Plains,

Zuora, electronic data interchange/supply chain

management, RightNow, SuccessFactors, Oracle E-

Business suite, and Workday users

In November 2010, Fred Joseph and AGC Partners sold Boomi to Dell; the acquisition was a strategic play as Dell recognized

iPaaS’ market potential and has since established itself as one of the leaders in this lucrative space. Boomi was a pioneer in the

iPaaS market and has remained a successful business unit for Dell ever since; in 2013, Boomi reported 263% YoY growth and

eclipsed the threshold of one million integrations per day; we believe that Boomi has exhibited a triple-digit growth rate throughout

Dell’s ownership

In March 2017, Boomi made its first strategic acquisition, buying ManyWho, a low-code enterprise application development software

Market Implications:

Boomi provided Dell with proprietary SaaS integration

technology that replaced Dell’s previous relationship

with Cast Iron after it was acquired by IBM. As one of

the first-movers in the iPaaS industry, Dell provided

Boomi with the superior resources of a large strategic

technology player, which has resulted in Boomi’s rise to

the top of the integration landscape

Dell: Diversified Computer Hardware and Software

Designs, develops, manufactures, markets, sells, and

supports computer systems, hardware and attached

software, as well as provides related services worldwide.

Dell offers desktop PCs; notebook computers, mobile

workstations, and smartphones; servers and networking

products; storage solutions, including storage area

networks, network-attached storage, direct-attached

storage, disk and tape backup systems, and removable disk

backup; and printers and displays

Source: 451 Research

21

Successful Recent Integration IPOs

Talend and Mulesoft have been rare bright spots in the tech-IPO-market over the past two relatively lackluster years, emphasizing the positive reputation that integration companies have in the public markets

While there are other long-established public companies that provide integration solution (IBM, Progress), MuleSoft and Talend are some of the first companies with their primary solution being integration-based

Talend is a big data Company that provides a platform to address IT integration needs, and Mulesoft provides iPaaS solutions for connecting applications and data sources

Talend and MuleSoft’s success in the public markets (7.7x and 13.7x EV / LTM Revenue multiples, respectively) will bring notoriety to the integration market and lead to more companies entering the sector

The private investment in the sector will presumably continue now that the public market has validated sector valuations and exposed the IPO as a viable exit opportunity for these types of companies

Source: CapitalIQ

IPO Stats

Date: Jul 29, 2016

IPO Price: $18 / share

Shares Issued: 5.1M

Funds Raised: $92M

1st Day Close: +53%

Performance To

Date:+104%

IPO Stats

Date: Mar 17, 2017

IPO Price: $17 / share

Shares Issued: 42.7M

Funds Raised: $221M

1st Day Close: +46%

Performance To

Date:+44%

22

Large Private

Equity

Transactions

$40M - $150M

$20M - $40M

<$20M

DISCLAIMER: This is only a representative list and may not include all relevant companies. If your company is not on the list and would like to be added for

future publications, kindly shoot us a note at [email protected] and we would be happy to consider.

Representative Companies By Total $ Raised

Source: CapIQ, 451 Research

23Source: CapIQ, 451 Research

Active Integration Buyers

Potential Strategic Buyers

Private Equity Buyout Firms

Large infrastructure players would benefit from the ability to seamlessly integrate into various applications

Companies with many of their own applications will look to own an integration system to connect them rather than rely on third parties

Provides opportunities for industry leaders to build out integration platforms with multiple point solutions

Some of the usual large tech buyers (Microsoft, Google, Amazon) are heads-down working on their own integration solutions

Market is ripe for Private Equity platform plays if strategics are hesitant on being acquisitive

Characteristics of Desired Targets:

IP or differentiating features

Sticky customer base with high recurring revenues

Easily integrated into existing platforms

DISCLAIMER: This is only a representative list and may not include all relevant companies.

If your company is not on the list and would like to be added for future publications, kindly

shoot us a note at [email protected] and we would be happy to consider.

24

Active Financial Investors (2014 – 2017 YTD)

Investor Number of Investments

Representative

Investments Investor Number of Investments

Representative

Investments

3DreamFactory, Mulesoft,

Tamr2

Cloud Elements,

Redpoint Global

2 RapidAPI, Snaplogic 2 Mulesoft, Qubole

2 Bedrock Data, Redox 2 Apigee, Qubole

2 FlyData, RapidAPI 2 Datameer, Tray.io

2 Apigee, Liaison 2 Apigee, Mulesoft

2 Sansoro Health, Xplenty 2 Tray.io, Xplenty

2 Apigee, Mulesoft 2 Celigo, Perspectium

2 Cirro, Tamr 2 Akana, Apigee

Source: CapIQ, 451 Research

25Source: CapIQ, 451 Research, Crunchbase

Largest Disclosed M&A Deals

Highlights & Key Takeaways

The integration M&A landscape is highlighted by the two recent, massive take-private transactions of Informatica and TIBCO by PE-firms

These multi-billion dollar mega-

transactions were still at impressive

revenue and EBITDA multiples

These companies may use their PE-

backers to continue acquiring smaller

solutions to build out their platforms

Large application companies Google and CA have shown a desire to own API management solutions

API management solutions can be

leveraged for their proprietary

applications as well as a new revenue

stream

Active consolidation efforts spurred by

some doubt that API Management is a

viable stand-alone market

Challenging industry in niche tech space

without head-end pipes

Integration

M&A

API Mgmt

M&A

Date Target Acquirer EV ($M)

LTM

Revenue

($M)

LTM

EBITDA

($M)

EV / LTM

Rev

EV / LTM

EBITDA

1. Sep-16 $555 $86 NM 6.5x NM

2. May-17 490 80 $35 6.1x 14.0x

3. Apr-13 155 35 ND 4.4x ND

4. Jun-16 29 4 ND 7.3x ND

Date Target Acquirer EV ($M)

LTM

Revenue

($M)

LTM

EBITDA

($M)

EV / LTM

Rev

EV / LTM

EBITDA

1. Apr-15 $5,774 $1,055 $169 5.5x 34.1x

2. Sep-14 4,200 1,091 143 3.8x 29.3x

3. Jul-17 1,260 ND ND ND ND

4. Feb-15 530 40 ND 13.3x ND

26Source: CapIQ, 451 Research, Crunchbase, Gartner

Integration Transaction Activity Summary

30

22

28

12

0

10

20

30

2014 2015 2016 2017

Total Numberof Transactions

Median Funding Size ($M)

Highlights & Takeaways

Consistent private funding activity testament to investor bullishness on integration space

High concentration of small funding rounds; investors taking low-risk gambles on point solutions

M&A activity in the integration market has not been quite as active, as the market is still figuring itself out

Gartner expects the iPaaS market to begin to consolidate over the next few years

Drivers of Acquisition

and Investment

As the market heats up, investors will want to get in early before too much saturation

Cost of winning new clients will increase and heavily funded companies will mature and look for exit opportunities

Recent IPOs of MuleSoft and Talendmay entice companies to test the public markets rather than waiting for acquisition

Private Placements*

M&A Transactions*

$234

$337

$197

$58

2014 2015 2016 2017

Total Capital Raised ($M)

$1,702

$6,955 $6,304

$617

$1,750

2013 2014 2015 2016 2017 YTD

Total Transaction Value M&A ($M)15

9 8

7

8

0.0X

4.0X

8.0X

12.0X

16.0X

2013 2014 2015 2016 2017YTD

Total Number of Transactions

Median Multiple

*Note: 2017 year to date transactions are as of July 7, 2017

27

About AGC

• Prior to AGC, Fred spent 7 years at SG Cowen & Co., and held positions at J.P. Morgan and Smith Barney

• Fred was a founding member of Beechtree Capital, a middle market leverage buyout firm

• With more than 120 completed transactions in his 25 plus years in the industry, Fred has raised public and private capital for both early stage and late stage corporations in the technology and healthcare sectors

• The majority of Fred’s work has been in Mergers & Acquisitions, where, cumulatively, he has executed in excess of $7 billion in transactions

• Fred holds a B.A. from Swarthmore College and an M.B.A. from Columbia University

AGC is a leading investment bank with a focus on providing strategic advisory services to technology companies, helping them achieve

their vision. With more than 50 investment banking professionals across the Americas and in Europe, we provide global coverage across

all products and sectors, from software and digital media to tech-enabled services and mobile communications. Since our inception in

2003, AGC Partners has completed 310 investment banking transactions for emerging growth companies.

Fred Joseph

Partner, King of Pain

• Ben is a co-founder and the CEO of AGC Partners

• In 29 years as an investment banker, Ben has completed more than 300 transactions

• Prior to AGC, he served as Managing Director, Head of M&A and Executive Committee Member at SG Cowen Securities, and prior to that served as Head of Technology Investment Banking for the East Coast and Europe at Montgomery Securities

• He serves as co-chairman of Excel Academy, which has four charter schools in East Boston, and served on the board of Portsmouth Abbey and the advisory board of Trinity College

• He holds a B.A. in Economics from Trinity College and an M.S. in Accounting from The Stern School of Business at NYU

Benjamin Howe

Co-Founder, CEO

• Scott is a Partner in the Investment Banking Group and founding team member at AGC Partners, focused on Enterprise Infrastructure sectors including Cloud Infrastructure, Data Analytics, Storage & Security

• In his 20 plus years as an investment banker, Scott has completed more than 50 M&A and debt / equity financing transactions

• Prior to joining AGC Partners, Scott was part of Deutsche Bank Alex Brown’s Technology Investment Banking Group in Boston

• Previously, Scott was an Associate in Global Mergers & Acquisitions at SBC Warburg and an Analyst in the Financial Institutions Group at Merrill Lynch & Co. in New York

• Scott holds a B.S. in Electrical Engineering from Cornell University and an M.B.A. from the Amos Tuck School at Dartmouth College

Scott Card

Partner

• Rob is a Partner at AGC Partners and is based out of the firm’s Silicon Valley office, where he focuses on the Software and Communications sectors

• Before joining AGC, Rob was Managing Director and Co-Head of Technology Investment Banking for CIBC World Markets from 1999-2008

• Rob was most recently Managing Director and Head of Technology, Media, and Telecom at Yorkville Advisors, a $1-billion fund focused on structured finance investments

• Rob began his career on Wall Street with Dean Witter Reynolds and later moved to Oppenheimer/CIBC; he has more than 20 years of experience, having completed over 200 financing and M&A transactions

Rob Buxton

Partner

M&A and Private Placement

Deal Appendix

Note: This document is intended to serve as an informative article only in order to further discussion, analysis and independent verification. This document is based upon sources

believed to be reliable, however, we do not guaranty the sources’ actuary. Unless otherwise indicated, AGC does not believe that the information contained herein is sufficient to

serve as the basis of an investment decision. There can be no assurance that these statements, estimates or forecasts will be attained and actual results may be materially

different. This is not a solicitation of an offer of any kind. To learn more about the company/companies that is/are the subject of this commentary, contact one of persons named

herein who can give you additional information.

Source: CapIQ, 451 Research, Crunchbase

Integration M&A 2013 – 2017 YTD

Date Target Acquirer Target Description EV ($M)

LTM

Revenue

($M)

EV / LTM

Rev

Jul-17 SyncsortCenterbridge

PartnersProvides Hadoop, Linux, Unix and Windows-based ETL data integration $1,260 ND ND

Jun-17Authentica

SolutionsBrightBytes Provides cloud-based technology and solutions for higher education ND ND ND

Jun-17 Denodo HGGC Offers data virtualization and integration platform ND ND ND

Jun-17 Mashape RapidAPI Operates an API marketplace for cloud based services ND ND ND

May-17 elastic.io mVise Provides a hybrid integration platform for its users’ SaaS ND ND ND

May-17 SmartBear Software Francisco Partners Provides tools to ensure the quality of APIs 490 $80 6.1x

Jan-17 Apiary Oracle Provides API design lifecycle software for enterprises ND ND ND

Jan-17 Pipemonk Freshdesk Provides cloud data and SaaS application integration software ND ND ND

Dec-16 Edge Technologies Lotus Innovations Provides data integration and visualization software ND ND ND

Nov-16 AkanaRogue Wave

SoftwareProvides API management and security and cloud integration 25 15 1.7x

Integration M&A 2013 – 2017 YTD (Cont’d)



LTM

Revenue

($M)

EV / LTM

Rev

Oct-16 C24 TechnologiesGresham

ComputingProvides data integration and management software $4 ND ND

Sep-16 Apigee Google Provides API management SaaS 555 $86 6.5x

Aug-16 AdapChain Logility Provides ERP, SCM and BI data integration middleware 4 ND ND

Aug-16 SimbaMagnitude

SoftwareDevelops data-access connectivity and analytics solutions ND ND ND

Jun-16 3scale Red Hat Provides API management SaaS 29 4 7.3x

Dec-15 Apiant WeWiredWed Provides tool for integrating data from multiple sources ND ND ND

Oct-15 Adaptris GroupReed Business

InformationProvides on premise, hybrid and cloud data and application integration ND ND ND

Oct-15 SyncsortClearlake Capital

GroupProvides Hadoop, Linux, Unix and Windows-based ETL data integration ND 68 ND

Aug-15 Mashery TIBCO Software Provides API software and SaaS ND 18 ND

Apr-15 Informatica Permira Funds Provides enterprise data integration and data quality 5,774 1,055 5.5x




LTM

Revenue

($M)

EV / LTM

Rev

Mar-15 2lemetry Amazon.com Provides enterprise application integration (EAI) middleware ND ND ND

Feb-15 PentahoHitachi Data

SystemsProvides open-source BI analytics and data integration software $530 $40 13.3x

Jan-15 ActiveNet Titleio Offers a platform to integrate and synchronize data sources ND ND ND

Oct-14 DataPad (assets) Cloudera Provides open-source data integration and visualization software ND ND ND

Sep-14 TIBCO SoftwareVista Equity

PartnersProvides data integration software and BPM, MDM and BI software 4,200 1,091 3.8x

Sep-14 Attachmate GroupMicro Focus

InternationalProvides legacy, server and mainframe integration software 2,350 957 2.5x

Aug-14 Itrios Intuit Provides a data and application integration SaaS ND ND ND

Aug-14Sophisticated

Business Systems

BluePhoenix

SolutionsProvides data migration and change management software 40 6 6.3x

Jul-14 Revelytix (assets) Teradata Provides Hadoop-based data integration SaaS ND ND ND

Jun-14 StrikeIron Informatica Provides application performance management (APM) and API management 55 6 9.1x




LTM

Revenue

($M)

EV / LTM

Rev

May-14 LiveRamp Acxiom Provides CRM marketing data integration SaaS $310 $25 12.4x

May-14 GloberRanger Fujitsu Develops and operates Internet of Things (IOT) and sensor platform ND ND ND

Nov-13 Cloudconnect.com salesforce.com Provides enterprise database integration SaaS ND ND ND

Nov-13 GXS OpenText Provides electronic data interchange (EDI) and file transfer 1,165 487 2.4x

Sep-13Circle Computer

GroupSyncsort Provides solutions to the key challenges of data migration ND ND ND

Sep-13 Mirth Quality Systems Provides open-source healthcare systems and software data integration 43 ND ND

Jul-13Kapow

TechnologiesKofax Provides data and content integration SaaS 40 16 2.5x

Jul-13 FoxWeave CloudBees Provides data integration, migration and synchronization SaaS ND ND ND

Jun-13 Elastic Intelligence Intuit Provides data integration SaaS ND ND ND

Jun-13 Composite Software Cisco Systems Provides a range of data virtualization, integration and analytics software 180 ND ND




LTM

Revenue

($M)

EV / LTM

Rev

Jun-13 Magnitude SoftwareSilverback

Enterprise GroupDevelops enterprise information management software ND ND ND

May-13 Oakland Software Talend Provides semi-structured data mapping software for businesses ND ND ND

Apr-13 ProgrammableWeb Mulesoft Provides a source for open APIs, mashups and web as platform ND ND ND

Apr-13Layer 7

TechnologiesCA Technologies Provides API management SaaS $155 $35 4.4x

Feb-13 EntropySoft salesforce.com Provides content integration SaaS ND ND ND

Feb-13 Star Analytics IBM Provides data integration software ND ND ND

Jan-13 Pervasive Software Actian Provides embeddable data integration and management software 119 49 2.4x

Median $168 $40 5.5x

Integration Private Placements 2014 – 2017 YTD

Date Target Investors Target Description

Transaction

Value ($M)

Jun-17 Flashnode Spintop Ventures Connects clients’ SaaS and on premise applications $2

May-17 Tamr GE Ventures Provides soltutions to tackle the challenge of connecting and enriching data ND

May-17 Information Builders Goldman Sachs, Bregal Sagemount Develops and offers software solutions for BI and enterprise integration ND

May-17 Perspectium TVC Capital Provides systems and application integration solutions 8

Apr-17 Sapho

Alsop Louie; Felicis; SoftTech; Morado

Venture; AME Cloud Ventures; Bloomberg

Beta; Caffeinated Capital

Provides micro application development and integration platform 14

Apr-17 Redox RRE Ventures Allows integration with any organization regardless of vendor or format 1

Mar-17 Sansoro HealthBain Capital; Healthy Ventures; TreeHouse

HealthProvides integration software for electronic medical record (EMR) platforms 5

Mar-17 Datameer ND Provides a data analytics application purpose-built for Hadoop ND

Mar-17 Unifi SoftwareCanaan Partners; Pelion Venture; Scale

VentureProvides a suite of self-service data integration tools 18

Mar-17 Advanced Biometric Controls ND Develops biometric middleware NM

Jan-17 Cirro ND Operates as a data warehousing cloud company ND

Jan-17 Redox RRE Ventures Allows integration with any organization regardless of vendor or format 10


Integration Private Placements 2014 – 2017 YTD (Cont’d)


Transaction

Value ($M)

Dec-16 N2N Services ND Designs and develops an iPaaS solution for higher education $2

Dec-16 XplentyRembrandt Venture; Magma Venture; True

Ventures; Bain Capital; Waarde CapitalProvides a cloud-based data integration 4

Dec-16 Verato Bessemer Venture; Columbia Capital Provides products that link customer, patient, or employee records 13

Dec-16 Cloud ElementsGrotech Ventures; Access Venture; Rally

Ventures; Harbert GrowthProvides cloud-to-cloud API integration and aggregation services 13

Nov-16 Matillion YFM Equity Develops cloud data integration software solutions 5

Nov-16 RapidAPIFundersClub, Investment Arm; Green Bay

Advisors; SV Angel; Andreessen HorowitzEnables developers to create a back-end for their apps without writing code 4

Nov-16 SnapLogic

Ignition Partners; Vitruvian Partners;

Triangle Peak; Andreessen Horowitz;

Capital One Growth; NextEquity

Delivers cloud iPaaS solutions for citizen integrators 40

Nov-16Greenbird Integration

Technology

Environmental Technologies Fund;

Statkraft VenturesProvides IT advisory services and integration solutions 5

Sep-16 OpenLegacy Plug and Play Tech Center Operates an enterprise integration API platform ND

Aug-16 ExchangeLodge SteelBridge Laboratories Provides a business process automation and data integration platform NM

Aug-16 Cloud Elements ND Provides cloud-to-cloud API integration and aggregation services 1

Aug-16 Tray.io Mosaic Ventures; True Ventures Provides drag and drop workflow editor integration platform 6




Transaction

Value ($M)

Jun-16 Brightwork.io Techstars Central Develops and operates API Management platform NM

Jun-16 Cyclr ND Connect cloud apps and services without code, NM

May-16 Sapho

Alsop Louie; Felicis; SoftTech; Morado

Venture; AME Cloud Ventures; Bloomberg

Beta; Caffeinated Capital

Provides micro application development and integration platform $10

May-16 Redpoint Global Grotech Ventures; WP Global Partners Offers ETL, data quality, and data integration applications 12

Apr-16 STAQKinetic Ventures; Core Capital; Genacast

Ventures; Revel Partners; Pereg VenturesDevelops an iPaaS for advertising technology platforms 5

Apr-16 Sansoro Health Healthy Ventures; TreeHouse Health Provides integration software for electronic medical record (EMR) platforms 1

Apr-16 systemsync solutions ND Provides integration solutions in the cloud NM

Apr-16 Zup IT Solutions ND Offers project acceleration solutions for IT environments 3

Apr-16 SpiceCSM ND Integrates existing applications to form a contact center 1

Mar-16 Signet Accel ND Operates a commercial federated data integration platform 4

Mar-16 Reekoh Future Now Ventures Provides an integration platform for connecting the IoT to SaaS & enterprise apps ND

Jan-16 Zenysis Technologies Y Combinator Designs and develops data integration software NM




Transaction

Value ($M)

Jan-16 Jitterbit KKR Provides data and application integration software solutions $20

Jan-16 QuboleCRV; IVP; Lightspeed Venture; Norwest

VentureDevelops a cloud-based data platform for analyzing and processing data sets 51

Jan-16 RapidAPI 500 Startups Enables developers to create a back-end for their apps without writing code NM

Jan-16 DSCO ND Operates a drop shipping integration platform NM

Jan-16 Cyclr ND Connect cloud apps and services without code, NM

Dec-15 Celigo TVC Provides cloud computing and application integration services. 8

Nov-15 Flashnode Spintop Ventures Connects clients’ SaaS and on premise applications 1

Oct-15 Zup IT Solutions Kaszek Ventures Offers project acceleration solutions for IT environments ND

Oct-15 SegmentAccel Partners; Kleiner Perkins Caufield &

Byers; Thrive Capital Develops a platform for collecting customer data 27

Oct-15 SnapLogic

Silver Lake; Ignition Partners; Triangle

Peak; Andreessen Horowitz; Microsoft

Accelerator

Delivers cloud iPaaS solutions for citizen integrators 38

Oct-15 Redox .406 Ventures Allows integration with any organization regardless of vendor or format 4

Sep-15 Unifi Software Canaan Partners; Pelion Venture Partners Provides a suite of self-service data integration tools 10




Transaction

Value ($M)

Sep-15 Capsenta ND Develops middleware software that integrates disparate databases NM

Aug-15 ApiaryCredo Ventures; Baseline Ventures;

Flybridge Capital PartnersDevelops API integration cloud $7

Aug-15 Datameer

KPCB; Redpoint Ventures; ST Telemedia;

Software AG; Top Tier Capital; Next World

Capital; Citi Ventures

Provides a data analytics application purpose-built for Hadoop 40

Jul-15 Cloud ElementsGrotech Ventures; Access Venture

Partners; Rally VenturesProvides cloud-to-cloud API integration and aggregation services 5

Jul-15 WSO2 Pacific Control Systems; Toba Capital Provides an open source enterprise middleware platform 20

Jul-15 FlyData Nissay Capital Provides data integration services to the cloud 1

Jun-15 Tamr

NEA; Thomson Reuters; GV; SineWave

Ventures; MassMutual Ventures; HP

Ventures; Work-Bench Ventures

Provides soltutions to tackle the challenge of connecting and enriching data 25

May-15 MuleSoft

NEA; Lightspeed Venture; ServiceNow;

Cisco Investments; Salesforce Ventures

and 8 others

Provides integration solutions for connecting applications and data sources 128

Apr-15 ZapStitch Technologies ND Owns and operates a cloud data integration platform 2

Apr-15 Sapho ND Provides micro application development and integration platform 8

Apr-15 WebActionSummit Partners; Intel Capital; Atlantic

Bridge Capital; Panorama Point PartnersDevelops a platform that streams data integration 26

Mar-15 Liaison Merck Global Health Innovation Fund Provides data management and integration solutions ND




Transaction

Value ($M)

Mar-15 Capsenta ND Develops middleware software that integrates disparate databases NM

Mar-15 Youredi Kim Groop, First Fellow Partners Provides e-Commerce functional integrations for logistics and finance $1

Feb-15 Corepoint Health Audax Group Provides internal and external health data integration solutions ND

Jan-15 VeratoBessemer Venture Partners; Columbia

CapitalProvides products that link customer, patient, or employee records 13

Dec-14 Bedrock Data .406 Ventures; Maiden Lane Ventures Operates a data management platform 2

Dec-14 Tray.ioAngelPad; Redpoint Ventures; True

VenturesProvides drag and drop workflow editor integration platform 2

Dec-14 Qubole Norwest Venture Partners Develops a cloud-based data platform for analyzing and processing data sets 21

Dec-14 DreamFactory Software New Enterprise Associates Connects mobile applications to enterprise back-end infrastructure in the cloud 4

Dec-14 Flowgear ND Makes data and application integration accessible to enterprises of any size 1

Nov-14 Unifi Software Canaan Partners; Omaha Capital China Provides a suite of self-service data integration tools 4

Nov-14 Zapier ND Offers a SaaS tool that enables non-technical users to connect Web applications 1

Oct-14 Xplenty Magma Venture Partners; Waarde Capital Provides a cloud-based data integration 3




Transaction

Value ($M)

Oct-14 SnapLogic

Ignition Partners; Triangle Peak Partners;

Andreessen Horowitz; Barton Asset

Management; Pharus Capital Management

Delivers cloud iPaaS solutions for citizen integrators $20

Oct-14 SegmentAccel Partners; e.ventures; Kleiner Perkins

Caufield & Byers Develops a platform for collecting customer data 15

Oct-14 Redox ND Allows integration with any organization regardless of vendor or format NM

Jul-14 Unifi Software ND Provides a suite of self-service data integration tools 1

Jul-14 SnapLogic ND Delivers cloud iPaaS solutions for citizen integrators 2

Jul-14 Redpoint Global Grotech Ventures Offers ETL, data quality, and data integration applications 5

Jun-14 Sapho SoftTech VC; Bloomberg Beta Provides micro application development and integration platform 3

Jun-14 Cyclr ND Connect cloud apps and services without code, NM

May-14 FlyDataNissay Capital; CyberAgent Ventures;

Archetype VenturesProvides data integration services to the cloud 1

May-14 Cloud ElementsGrotech Ventures; Rally Ventures;

Galvanize VenturesProvides cloud-to-cloud API integration and aggregation services 3

May-14 Tamr NEA; GV Provides soltutions to tackle the challenge of connecting and enriching data 16

May-14 ActiveNet Technologies BoomStartup Develops and operates a data integration platform NM




Transaction

Value ($M)

May-14 Cirro GE Ventures Operates as a data warehousing cloud company ND

Apr-14 Apigee

Norwest Venture; Sapphire Ventures;

BlackRock; Wellington Financial;

Accenture; Third Point and 4 others

Develops a software platform that enables API-based digital strategies $60

Apr-14 STAQKinetic Ventures; Core Capital; Genacast

Ventures; Revel Partners; The HiveDevelops an iPaaS for advertising technology platforms 3

Mar-14 Akana Wellington Financial Offers a suite of API management and cloud integration products 10

Mar-14 SnapLogic ND Delivers cloud iPaaS solutions for citizen integrators 2

Mar-14 Liaison Accenture Provides data management and integration solutions 15

Mar-14 MuleSoft

NEA; Lightspeed Venture; Cisco

Investments; Salesforce Ventures and 4

others

Provides integration solutions for connecting applications and data sources 51

Mar-14 Cirro ND Operates as a data warehousing cloud company 1

Feb-14 elastic.io ND Provides integration Platform-as-a-Service (iPaaS) solutions ND

Feb-14 DreamFactory Software ND Connects mobile applications to enterprise back-end infrastructure in the cloud 1

Jan-14 FlyData 500 Startups Provides data integration services to the cloud 2


Joe Dews

Fred Joseph

44

Maria Lewis

Kussmaul

Eric DavisRuss

Workman

SECURITY

Ben Howe

SOFTWARE

DIGITAL MEDIA & INTERNET

Linda

Gridley

Elena

MarcusGee Leung Charlie

Schopp

Jon Guido

Joe DewsScott Card Rob BuxtonMarkus

Salolainen

INFRASTRUCTURE

London

Fred Joseph Hugh

Hoffman

Ben Howe Dennis

Rourke

Jon Guido

Elena

Marcus

Doug Hurst Trevor

Martin

Greg Roth Charlie

Schopp

45

$70M / $145M

AGC advised Mandiant on a $70M capital raise at a $145M valuation and 5.1x revenue multiple

The proceeds were used to repurchase shares from investors and to fuel strategic growth initiatives

Mandiant leveraged KPCB's knowledge and expertise following the investment and grew rapidly before being

acquired by FireEye in 2014 for $1B, 6x the pre-money equity value of the AGC growth equity transaction

$25M / ND AGC closed a $25M investment led by North Bridge Growth Equity

The transaction included primary and secondary capital to provide liquidity to shareholders and to finance

erecruit's first growth equity round

$65M / ND

AGC kicked off a highly competitive growth equity process that ultimately brought in 8 term sheets from prospective investors

Buildium moved forward with Sumeru and closed a $65M capital raise The capital was a mix of primary and secondary to provide liquidity to shareholders and K1, and to fuel future

strategic growth

$49M / ND

AGC advised Litmus on a $49M capital raise that valued the company at 6x revenues

AGC leveraged inbound interest to drive an intense 60-day process, soliciting multiple preemptive term

sheets from top PE and strategic buyers, representing a valuation that was over 2x the original offer

The invested capital was a mix of primary and secondary to provide liquidity to the existing shareholders and

to drive strategic growth initiatives

Client Investor

Check Size /

Enterprise Value Process and Outcome

$27M / ND

AGC helped Building Engines, a leading real estate software provider, raise $27M After bringing in multiple term sheets, with both minority and majority options, AGC assisted Building Engines

in choosing the right partner with which to move forward The capital was a mix of primary and secondary for liquidity to shareholders and fuel strategic growth

$375M / $535M

AGC advised Planet Fitness on a $375M capital raise led by TSG Consumer Partners at a $535M value

AGC conducted a frenzied auction in the middle of August and signed the definitive agreement roughly 60

days after signing the engagement letter

Planet Fitness went public on the NYSE in August 2015 opening at an implied equity value of $1.6B, 4.3x the

pre-money equity valuation at the close of the AGC transaction


ND / ND

Zapproved engaged AGC Partners to complete a large minority/majority PE financing In less than 30 days, AGC had engaged the leading global PE tech investors in a highly competitive auction

which resulted in Vista Equity taking a controlling position in the company The investment provided liquidity for angel investors, added cash to the balance sheet, and resulted in a

strong strategic relationship for Zapproved to benefit from Vista’s expertise in building enterprise SaaS companies

ND / ND

AGC advised Certify, a leading enterprise SaaS company, on a majority investment from K1 Investment Management, a leading technology-focused PE fund

In a targeted approach, AGC reached out to a select group of the top PE technology investors in a highly competitive process

The invested capital provides liquidity for the founders and angel investors, enables a large acquisition for Certify, and allows for the significant operational expertise of K1 to help Certify continue to scale

46

Client Buyer Process and Outcome

ND / ND

AGC advised L2, a provider of digital performance benchmarking to Fortune 500 brands, on its sale to Gartner

AGC ran a highly efficient, disciplined process, reaching out to a carefully selected group of top digital media

buyers and receiving multiple term sheets

The Company’s price expectations were very specific; AGC drove effective price valuation rationales to get

buyers to meet those expectations and adopt a view of L2’s data driven digital measurement capabilities as

potentially transformative to their business

ND / ND

AGC advised Cognilytics on a sale to CenturyLink

AGC reached out to a targeted group of potential acquirers; of that group, several parties conducted an

evaluation of the business and held introductory meetings with the management team

Following receipt of an LOI, AGC pushed other prospective acquirers into a competitive process that resulted in

a higher enterprise value and better terms with the ultimate acquirer, CenturyLink

ND / ND

AGC advised Simplygon, an AR / VR company, on its sale to Microsoft in January, 2017

Within two weeks of launching a market test, AGC generated multiple in-person meetings including several

top global technology strategic buyers

The highly competitive process generated multiple strategic bids

Upon receiving Microsoft’s term sheet, AGC negotiated seller friendly terms and our client signed the term

sheet within 24 hours

AGC advised FMCG Direct, a leading data-driven marketing services provider to financial services on its sale to

Deluxe Corporation (NYSE: DLX)

The Company had inbound interest from multiple parties which AGC fielded, keeping the appropriate amount of

tension to create a competitive bidding environment

AGC commenced outreach in less than two weeks of engagement resulting in over 40 NDAs signed and ~20

meetings with management

AGC leveraged the high level of interest it collected from the outreach to negotiate a more compelling offer and

better terms for FMCG

$200M / ND

$400M / 8.5x AGC initially advised Prolexic on their $30M capital raise led by Trident Capital and Intel in 2013, and

subsequently advised the Company on their $400M dollar sale to Akamai

Following a competitive financing round, Prolexic was approached by Akamai to be acquired

By driving an extremely competitive process and providing access to the right decision makers, AGC was able

to achieve an 8.5x acquisition transaction multiple

$275M / 7.4x

AGC initially advised iSIGHT on their $30M capital raise from Bessemer in 2014, and subsequently advised the

Company on their sale to FireEye (Nasdaq: FEYE) in January 2016

In light of inbound interest, AGC was engaged to run a rapid, highly disciplined M&A process to test the market

and simultaneously stoke existing interest from the buyer at the table

By positioning iSIGHT’s superior technology, continued market traction, and viable growth strategy to the

market, AGC was able to drive a competitive process that improved negotiating leverage resulting in optimal

deal terms and a massive exit multiple

$1B / 8.0x

AGC advised SS&C on a $1 billion dollar sale to the Carlyle Group at an 8x revenue multiple

AGC set up an intense 2-day roadshow with the top 6 technology buyout firms: Carlyle, Summit, Thomas Lee,

Tudor, Warburg Pincus, Welsh Carson

AGC created an auction environment and generated bids in 30 days

AGC drove a 80% premium to the pre-deal trading price

EV / Revenue Multiple


48

Boston

November, 2017

San Francisco

February, 2017

London

June, 2017

Boston49

50

sold tosold to Sold to

51

SOFTWARE / TECH ENABLED SERVICES / ENERGY TECH

COMMUNICATIONS / SEMICONDUCTOR / IT INFRASTRUCTURE

DIGITAL MEDIA & INTERNET FIN TECHHCIT

INFORMATION SECURITY & DEFENSE

http://www.iab.net/iablog/2011/04/whats-new-with-digital-audio--.html

http://www.iab.net/iablog/2011/04/whats-new-with-digital-audio--.html

http://www.livedrive.com/press/press-artwork

http://www.livedrive.com/press/press-artwork

http://www.prweb.com/releases/2013/6/prweb10806282.htm




http://asamarketplace.net/listing/erecruit/

http://asamarketplace.net/listing/erecruit/

52

Leveraged multiple indications of interest into an excellent outcome…

We’re thrilled with the outcome…

24 x 7 commitment, creativity, and persistence…

Super smart, responsive, and insightful…

Provided invaluable counsel and execution support…

Head and shoulders above the others…

There is nobody I would rather have in my corner…

Gary Gauba, President,

Advanced Solutions Group,

CenturyLink

Gary founded and successfully

sold three companies—Softline,

Systech, and Cognilytics—all

with AGC Partners as his advisor

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Strong Relationships with the Leading Strategic and Financial

Buyers and Growth Equity Investors

Outstanding Sector Knowledge Enables AGC to Effectively Position

our Clients in the Market

One of the Largest Global Technology Banking Teams

Engagements Led by Partners, Not Handed Down to Junior Bankers

Premier Industry Investor Conferences

AGC Drives Both Big and Small Deals to Premium Valuations