quarterly software sector review 3q 2015 · page | technology, media, & telecom quarterly...

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TECHNOLOGY, MEDIA, & TELECOMQUARTERLY SOFTWARE SECTOR REVIEW │ 3Q 2015

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TECHNOLOGY, MEDIA, & TELECOM

QUARTERLY SOFTWARE SECTOR REVIEW │ 3Q 2015

CONTENTS

DEAL SPOTLIGHT

WHAT WE’RE READING

M&A TRANSACTIONS – 3Q 2015

SOFTWARE M&A ACTIVITY

SOFTWARE SECTOR OVERVIEWS

SOFTWARE PRIVATE PLACEMENTS OVERVIEW

SOFTWARE PUBLIC COMPARABLES OVERVIEW

TECHNOLOGY IPO OVERVIEW

DEBT MARKET OVERVIEW

APPENDIX: PUBLIC COMPARABLES DETAIL

TMT CONTACTS

UNITED STATES

Jeff BistrongManaging [email protected]

Sam HendlerManaging [email protected]

Mike WilkinsManaging [email protected]

EUROPE

Thierry MonjauzeManaging [email protected]

TO SUBSCRIBE PLEASE EMAIL:*[email protected]

HARRIS WILLIAMS & CO. OVERVIEW

HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM

SOFTWARE / SAAS

Application Software

Data and Analytics

Infrastructure Software

IT and Tech-Enabled Services

Telecom and Data Center Solutions

INTERNET & DIGITAL MEDIA

AdTech and Marketing Solutions

Consumer Internet

Digital Media, Content, and Gaming

eCommerce

Mobile

HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS

SELECT RECENT HW&CO. TMT TRANSACTIONS

STRATEGIC RELATIONSHIPS

HW&Co. OFFICE

Education Technology

Energy Technology

Financial Technology

Healthcare IT

Public Sector

Supply Chain / Logistics

TMT VERTICAL FOCUS AREAS

24+ year history with over 170 closed transactions in the past 3 years

Approximately 235 professionals across seven offices in the U.S. and Europe

Strategic relationships in India and China

10 industry groups

KEY FACTS

has been acquired byhas received a majority

Investment fromhas been acquired by

has acquired a majority interest in

has been acquired byhas been acquired by has been acquired by

1

has been acquired byhas been acquired byhas been acquired byhas been acquired byhas been acquired by

www.harriswilliams.com

mailto:[email protected]




mailto:*[email protected]

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DEAL SPOTLIGHT – HELPSYSTEMS

HelpSystems is a leading provider of system and network management, businessintelligence, security, and compliance software solutions.

With over 9,000 customers across a broad range of industries, HelpSystems is the marketleader within system and network management for the IBM-i operating system and israpidly expanding its presence on the Windows, Linux and Unix platforms.

Founded in 1982, HelpSystems is headquartered in Eden Prairie, Minnesota.

ABOUT HELPSYSTEMS

As an industry consolidator, HelpSystems has successfully utilized a buy vs. builddecision framework in order to expand its solution suite and acquire new clients inadjacent market segments.

H.I.G. Capital is partnering with HelpSystems to further its organic and inorganic growthstrategy, with a focus on enhancing the company’s best-in-class service offerings for itsexisting client base.

This transaction represents the second time HW&Co. has advised HelpSystems on a saleprocess, having advised Audax Private Equity in the sale of HelpSystems to SummitPartners in April 2012.

HW&Co. continued its strong momentum in the software sector by advising Summit Partners andManagement on the sale of HelpSystems to H.I.G. Capital.

has been acquired by

2

October 7, 2015

PAGE | 3



THE PAYMENTS WORLD REALLY WANTS TO KNOW WHO YOU ARE (OCTOBER 11, 2015)

Point of sale payments technology has changed quite a bit since the 1960s, and although PINs still play an important role in securing many transactions, recent advances in payment technology provide us with the convenience of paying with our phones and watches, our credit and debit cards contain embedded microchips that will essentially wipe out counterfeit fraud and we can now initiate, verify and secure a payment with the swipe of a finger. However, as cyber-criminals become increasingly more sophisticated given recent well-publicized data breaches, more secure payments technologies that utilize multi-factor identification methods, like biometrics and social data mining, are becoming the future of payments.

TechCrunch

TECH IPOS SHOW WEAKNESS, BUT M&A CHARGES AHEAD (SEPTEMBER 11, 2015)

Despite the weakening IPO picture, M&A in the technology sector continues to surge. In particular, middle market technology companies are watching their valuations soar amid a wave of deals. Notable 3Q 2015 technology deals include Fidelity National Information Services‘ $9.1 billion (including debt) pending acquisition for financial software company SunGard, Infor’s $675 million acquisition of supply chain management firm GT Nexus, and Advance Publication’s $500 million acquisition of big-data software provider 1010data. The spike in technology acquisitions coupled with large amounts of private equity dry powder is driving the percentage of total IPO filings by technology companies to a seven year low.

The Wall Street Journal

WHAT WE’RE READING

3

PE FIRMS SEE MOST TECH EXITS EVER VIA M&A (SEPTEMBER 25, 2015)

In one of the hottest M&A markets, cash-flush strategic buyers are aggressively acquiring assets while private equity has largely stayed on the sidelines, at least as buyers. Consequently, private equity has been focused on exiting their portfolio companies, especially their technology investments. Through year-to-date 2015, private equity firms sold over 100 technology companies with a combined valuation of $52.7 billion, the highest on record according to Dealogic. Of the $52.7 billion, U.S. based technology companies accounted for 88%, or $46.2 billion, of the aggregate volume, which is also the highest volume on record. This surge in M&A comes at a time when technology firms have essentially eschewed the public markets as evidenced by just 14% of all U.S. IPOs this year have come from technology companies – the lowest portion on record.

The Wall Street Journal

BIG DATA ANALYTICS, DIGITAL HEALTH M&A MAY PROFIT HEALTH SYSTEMS (SEPTEMBER 16, 2015)

According to a recent study by Accenture, healthcare systems that proactively acquire or invest in digital health service providers in addition to their traditional merger and acquisition targets are more likely to create profitable, diversified portfolios of complementary holdings. Over the past six years, investors have spent approximately $15.4 billion on 2,349 venture deals as demand for healthcare big data analytics software and services rises rapidly in the provider community. Startups and digital health services companies that offer big data analytics, population health management, practice management, and patient engagement solutions are prime investment opportunities for health systems that see the benefit in managing as many operational development activities as possible under their own corporate umbrella.

Health IT Analytics

THE NEW CYBER KILL CHAIN (SEPTEMBER 27, 2015)

The cloud has significantly changed, and shortened, the cyber kill chain. It’s now easier than ever for a hacker to access the entire contact list of a single person, the organization they belong to, or even the entire supply/value chain of the organization. With smaller degrees of separation between people and organizations, and the surge of Internet of Things, taking down entire supply chains of organizations has never been easier, thus driving a new era for cybersecurity. Industry analysts believe the pace and innovation of cybersecurity needs to increase along with it and should be an integral part of organizational strategy, embedded into core workflows an investment decisions.

VentureBeat

http://techcrunch.com/2015/10/11/the-payments-world-really-wants-to-know-who-you-are/

http://blogs.wsj.com/cfo/2015/09/11/the-morning-ledger-tech-ipos-show-weakness-but-ma-charges-ahead/

http://blogs.wsj.com/moneybeat/2015/09/25/pe-firms-see-most-tech-exits-ever-via-ma/

http://healthitanalytics.com/news/big-data-analytics-digital-health-ma-may-profit-health-systems

http://venturebeat.com/2015/09/27/the-new-cyber-kill-chain/

PAGE |



SELECT M&A TRANSACTIONS – 3Q 2015

Infor’s acquisition of GT Nexus

GT Nexus offers a cloud-based business network and execution platform for global trade and supply chain management.

Approximately 25,000 businesses rely on GT Nexus, including six of the top ten logistics service providers and 30 global financial institutions, all managing more than $100 billion in goods each year using its cloud-based business network.

Together, Infor and GT Nexus will provide customers with industry-leading visibility into their supply chains to manage production and monitor goods in transit and at rest.

Ent. Value: $675M

Revenue: $133M

EV / Revenue: 5.1x

EV / EBITDA: 67.5x

Closed 9/18/15

Thoma Bravo acquires a majority stake in MedeAnalytics

MedeAnalytics is a leading provider of cloud-based financial performance analytics for the healthcare industry.

The company’s evidence-based insights enable over 1,500 healthcare providers globally to leverage the vast amounts of data available to deliver cost-effective care and promote healthier populations.

Thoma Bravo will assume a controlling stake in the business, while prior investors Bain Capital, Integral Investors, and Emergence Capital Partners will remain minority shareholders.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Closed 9/30/15

TPG Capital and Leonard Green’s pending acquisition of Ellucian

Ellucian is a leading global provider of software, services, and insights to the higher education industry.

Serving over 2,400 higher education institutions globally, Ellucian provides software that is used for student registration, finance, human resources, recruiting and other administrative purposes.

Leonard Green and TPG will seek to leverage their deep software experience and global resources to partner with management and continue developing and expanding the platform.

Announced 8/14/15

Ent. Value: $3.5B

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

TA Associates’ strategic majority investment in Mitratech

Mitratech provides enterprise legal management software solutions for corporate legal departments globally.

The company delivers integrated matter management, spend management, e-Billing, legal hold, contracts management, entity management, and GRC solutions for over 750 organizations and 100,000 users across the globe.

Mitratech’s new partnership with TA Associates allows the company to stay private and focus on its current strategy while leveraging TA's global footprint and growth focus to deliver even more innovation and value to clients.

Ent. Value: NA

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Closed 9/28/15

Roper Technologies acquires On Center Software

On Center Software provides cloud-based construction automation management solutions in the U.S. and internationally.

Over 40,000 users rely on the company’s solutions to reduce manual processes and eliminate costly errors in the construction takeoff, estimating, and project management processes.

Roper’s long-term orientation towards growth aligns with On Center Software’s vision for how to deliver new products to its customer base as well as new prospects within the construction industry.

Ent. Value: $157M

Revenue: NA

EV / Revenue: NA

EV / EBITDA: NA

Closed 7/20/15

4

PAGE | 5



5 58

15

9 7 7 84

712

10

5

85 7

35

5

5

9 8

5

9 7 59 2 8

287 9

10

4 5

14

43

9

102

127

3

1

1

2015 YTD

2014

2013

2012

2011

SOFTWARE ACQUISITION ACTIVITY – STRATEGIC ACQUIRERS

MOST ACTIVE STRATEGIC ACQUIRERS OF SOFTWARE ASSETS BY VOLUME

GLOBAL STRATEGIC ACQUIRER SOFTWARE M&A ACTIVITY BY VOLUME

The 10 most active strategic software consolidators combined for 49 acquisitions in 2015 YTD; Microsoft was the most active with 12 acquisitions to date.

After a slow start to 2015, Oracle completed its acquisition of marketing automation company, Maxymiser, which will complement Oracle’s targeting capabilities via Eloqua, as well as Oracle’s new Commerce Cloud.

Global strategic software M&A registered 435 transactions in 3Q 2015, a slight decrease compared to the prior quarter, but still among the most active quarters in the last four years.

Despite recent market volatility, strategic buyers continue to seek growth through M&A, capitalizing on large cash reserves and stock prices at or near all time highs.

381 375352

379 362413

352 352 332 327 323369

340307

397

457435

3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15

5

PAGE | 6



2 2 14

2 25

3

96

3

4

23

1

2

12

7

3

4

16

35

20 1

9

5

44 2

35 5 5 6

5

5

5 22

5 2 2 1

2015 YTD

2014

2013

2012

2011

SOFTWARE ACQUISITION ACTIVITY – PRIVATE EQUITY

MOST ACTIVE PRIVATE EQUITY BUYERS OF NEW SOFTWARE PLATFORMS BY VOLUME

GLOBAL NEW PLATFORM PRIVATE EQUITY SOFTWARE M&A ACTIVITY BY VOLUME

Vista Equity, Thoma Bravo, Francisco Partners, and Marlin Equity are the most active software investors through 2015 YTD, with a combined 20 new platform investments across multiple software sectors.

Vertically-focused software assets are receiving significant attention from private equity, some of the more notable transactions include: Vista Equity / Power Schools (Education), Thoma Bravo / MedeAnalytics (Healthcare), Marlin Equity / IBS (Manufacturing and Distribution), and Francisco Partners / eFront (Financial Services).

In 3Q 2105, global private equity investment activity in the software sector continued its strong momentum with 51 new platform acquisitions.

Private equity interest in the software sector remains strong as record levels of dry powder and favorable lending conditions continue to drive acquisition activity.

64

36

4549

42 4541

38

4845 44

32

4944 44

53 51

3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15

6

PAGE | 7



DATE

CLOSED ACQUIRER TARGET DESCRIPTION

ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

APPLICATION SOFTWARE – M&A MARKET SUMMARY

APPLICATION SOFTWARE M&A VOLUME (GLOBAL)

NOTABLE APPLICATION SOFTWARE M&A TRANSACTIONS

In 3Q 2105, Application Software M&A continued at a strong place, representing the second most active quarter in four years.

Median reported Application Software M&A revenue multiples decreased slightly in 3Q 2015, however, still remain in line with historical averages.

Pending SS&C Technologies Holdings, Inc. Primatics Financial LLC Integrated enterprise software for the financial serv ices sector. $122 2.4x

Pending Ericsson Enviv io, Inc. Software-based IP v ideo processing and distribution solutions. $90 2.1x

Pending IBM Merge Healthcare Incorporated Electronic healthcare reporting software. $975 4.3x

Pending Leonard Green & Partners, TPG Ellucian, Inc. Software, serv ices, and analytics for higher education institutions globally. $3,500 NA

Pending Amadeus IT Group SA Navitaire LLC Software-based airline, rail, and bus operations solutions. $830 NA

Pending FIS Global SunGard Data Systems Inc. Business management software, analytics, and serv ices for the financial sector. $9,100 3.2x

09/28/15 TA Associates Management, L.P. Mitratech Holdings, Inc. Enterprise software solutions for the legal industry. NA NA

09/22/15 The Riverside Company Baker Hill Corporation Banking process management software solutions. $100 3.2x

09/10/15 Xerox Corporation RSA Medical, LLC Outsourced provider of technology-based, medical risk management serv ices. $147 3.1x

09/03/15 ParkerGale ATP Software and information serv ices for the aviation industry. $44 1.8x

09/02/15 Trimble Navigation Limited ViaNova Systems AS Model-based software tools for the design of transport infrastructure. NA NA

09/01/15 HighJump Software Wesupply Limited Outsourced B2B integration and electronic data exchange serv ices. NA NA

09/01/15 Wolters Kluwer Health, Inc. Learner's Digest International LLC Mobile-based educational and research products for the healthcare industry. $150 3.8x

08/12/15 Emdeon Altegra Health, Inc. Tech-enabled business and consulting solutions to the healthcare industry. $910 NA

07/31/15 Premier Healthcare Solutions, Inc. Healthcare Insights, LLC Financial management software solutions for hospitals and healthcare-related businesses. $69 NA

06/30/15 Marlin Equity Partners, LLC IBS AB ERP software for the wholesale and distribution markets globally. NA NA

06/29/15 Vista Equity Partners Mediaocean LLC Advertising software and serv ices for advertising agencies and media owners. NA NA

$149 3.2x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

MEDIAN M&A REVENUE MULTIPLES (REPORTED)

1.9x1.9x

1.2x

2.1x

2.4x

1.3x

1.4x 1.5x

1.6x

2.5x2.5x

2.1x

2.3x2.3x

1.6x

2.5x

2.2x

285

269

255

288

266

298

244 246 252 251

227

282

269

287

274

322 321

7

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

In 3Q 2015, there was a surge in healthcare IT M&A, which was driven by strategic buyers seeking to further diversify their existing solution suites and care offerings.

Notable healthcare IT transactions include IBM’s pending acquisition of Merge Healthcare, Xerox’s acquisition of RSA Medical, Wolters Kluwer’s acquisition of Learner’s Digest International, and Emdeon’s acquisition of Altegra Health.

MEDIAN

PAGE | 8



NOTABLE SAAS M&A TRANSACTIONS

Pending Envestnet, Inc. Yodlee, Inc. Cloud-based digital financial software and serv ices. $504 5.1x

10/01/15 Cox Automotive, Inc. Dealertrack Technologies, Inc. Software solutions and serv ices to the automotive retail industry. $4,464 4.7x

10/01/15 Aflac, Inc. Empowered Benefits SaaS-based employee benefits technology provider. $40 6.5x

09/18/15 Infor (US), Inc. GT Nexus, Inc. Cloud-based supply chain v isibility and logistics management software. $675 5.1x

09/15/15 CIP Capital Community Investors, Inc. SaaS-based community management software tools. $116 4.8x

09/02/15 Marlin Equity Partners, LLC ADP AdvancedMD, Inc. Cloud-based practice management, electronic health record, and scheduling software. NA NA

08/20/15 PeopleAdmin, Inc. SearchSoft Solutions, Inc. Web-based recruitment and talent management software. NA NA

08/20/15 Premier Healthcare Solutions, Inc. CECity.com, Inc. Cloud-based healthcare software solutions. $400 NA

08/20/15 Oracle Corporation Maxymiser Inc. Online customer experience optimization software solutions. NA NA

08/10/15 NetSuite Inc. Monexa Solutions Inc. On-demand subscription billing and payment automation solutions. $35 NA

08/06/15 Everyday Health, Inc. Tea Leaves Health Cloud-based consumer and physician CRM solutions. $50 NA

08/04/15 Vista Equity Partners Pearson SIS (PowerSchool) Web-based student information software solutions. $350 NA

07/20/15 Roper Technologies, Inc. On Center Software, Inc. SaaS-based construction automation management solutions. $157 NA

07/13/15 Francisco Partners Management ClickSoftware Technologies Ltd. SaaS-based workforce management and serv ice software. $376 3.0x

06/30/15 Insight Venture Partners Fourth Ltd. Cloud-based cost control solutions to the hospitality industry. NA NA

06/09/15 NetSuite Inc. Bronto Software, Inc. Online marketing platform for ecommerce retailers. $200 NA

05/11/15 Extend Health, Inc. Acclaris, Inc. SaaS-based support for account-based healthcare plans. $140 NA

$200 5.0x

HW&CO. CONFIDENTIAL

HW&CO. CONFIDENTIAL

3.7x

4.3x

3.4x

5.5x

4.9x

5.8x

4.6x

5.3x

4.4x

5.3x

5.6x 5.7x

4.5x

3.5x

3.9x

4.2x

3.9x

38 39

43

38

42

55

38

49 47

45 46

60

54 52

63

71

60

SAAS – M&A MARKET SUMMARY

SAAS M&A VOLUME (GLOBAL)

After a high water mark in 2Q 2015, SaaS M&A volume decreased in 3Q, while continuing to register above average activity.

In 3Q 2015, median reported M&A revenue multiples remained near 4.0x revenue as SaaS companies with defensible market positions and substantial recurring subscription revenue continue to be highly sought after acquisition targets.

In 3Q 2015, strategic and private equity buyers completed transactions across a diverse set of verticals including financial services, supply chain and logistics, automotive, and healthcare.

One of the more notable vertical SaaS transactions includes Infor’s $675 million acquisition of GT Nexus, a supply chain visibility and logistics management business for the transportation and logistics sector.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

8

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

MEDIAN

PAGE | 9



NOTABLE DATA AND ANALYTICS M&A TRANSACTIONS

72 76

63

82

73 74

64

71 74

64 67

72 76

97

88

105 107

DATA AND ANALYTICS – M&A MARKET SUMMARY

DATA AND ANALYTICS M&A VOLUME (GLOBAL)

In 3Q 2015, the Data and Analytics software M&A sector registered its strongest quarter in the past four years, with 107 reported transactions.

Median reported M&A multiples for Data and Analytics transactions remain at four-year highs as buyers continue to place premiums on assets that enable them to glean actionable insights from proprietary data sets and improve their overall user experience.

Data and Analytics software companies are increasingly drawing attention from the private equity community.

In one of the largest Data and Analytics deals in 2015, private equity firm, Permira Advisors, acquired Informatica in a take-private transaction for $4.8 billion, providing the company with more flexibility and time to implement its transformative roadmap


1.3x

1.4x

3.3x

1.6x

0.9x

1.8x

1.1x

0.9x

1.4x

1.3x

1.9x 1.9x

2.3x

2.7x2.6x

3.2x

2.9x

Pending Genscape, Inc. Locus Energy, LLC Provider of data monitoring and analytics software for the energy sector. NA NA

Pending Microsoft Corporation Volometrix, Inc. Enterprise data analytics software for corporations. NA NA

Pending The Carlyle Group LP Innovation Group plc Business process serv ices, analytics and software solutions for the insurance industry. $677 2.0x

Pending Aval Data Corporation Fixstars Corporation Software for data analysis and reporting. $177 7.0x

10/01/15 Markit Ltd. CoreOne Technologies LLC Tech-enabled data analytics solutions for the financial serv ices sector. $200 NA

09/30/15 Thoma Bravo, LLC MedeAnalytics, Inc. Cloud-based healthcare analytics solutions for the healthcare industry. NA NA

08/06/15 Permira Advisers Ltd. Informatica Corporation Provides enterprise data integration software and serv ices worldwide. $4,844 4.6x

08/04/15 iSqFt Construction Market Data Group LLC Construction market data and analytics solutions. NA NA

08/03/15 Advance Communication Corp. 1010data, Inc. Cloud-based platform for big data discovery and data sharing. $500 NA

06/04/15 Hitachi Data Systems Corporation Pentaho Corporation Software and support for the open source statistical computing language. NA NA

06/04/15 Francisco Partners Management Procera Networks, Inc. Enterprise data integration software and serv ices. $130 1.6x

06/04/15 Solera Holdings Inc. DMEautomotive, LLC Data-driven automotive marketing software. $143 2.3x

05/31/15 MasterCard Incorporated Applied Predictive Technologies, Inc. Business analytics software that helps consumer-facing companies mitigate risk. $600 NA

05/28/15 eVestment Alliance, LLC TopQ Software Ltd Subscriber experience assurance solutions based on deep packet inspection (DPI). NA NA

04/17/15 IHS Inc. RootMetrics Inc. Cloud-based cause-and-effect analytics software solutions. NA NA

04/14/15 Microsoft Corporation Datazen Software Inc. Provider of web-based private equity information and analytics. NA NA

04/06/15 Microsoft Corporation Revolution Analytics, Inc. Mobile consumer analytics software. NA NA

$350 2.3x

HW&CO. CONFIDENTIAL

DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

9

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

MEDIAN

PAGE | 10



NOTABLE INFRASTRUCTURE SOFTWARE M&A TRANSACTIONS

Pending Barracuda Networks, Inc. Intronis, Inc. Provides cloud, physical, and v irtual data protection serv ices. $65 NA

Pending The Carlyle Group Novetta Solutions, LLC Advanced fraud and risk management detection software. NA NA

Pending Cisco Systems, Inc. MaintenanceNet, Inc. SaaS-based serv ice revenue generation solutions. $139 NA

Pending The Carlyle Group, GIC Pte Veritas Technologies Corporation Data backup, recovery, archiv ing, eDiscovery, storage management solutions. $8,000 NA

10/07/15 H.I.G. Capital, LLC HelpSystems, LLC IT infrastructure software for network management, business intelligence, and security. $575 5.4x

09/30/15 Amazon Web Serv ices, Inc. Elemental Technologies, Inc. Video processing software solutions. $500 NA

09/28/15 Microsoft Corporation Adxstudio Inc. Web content application development company. NA NA

09/25/15 Computer Sciences Corporation Fixnetix Ltd. Low latency market data and trading infrastructure solutions. $113 NA

09/10/15 IBM StrongLoop Provides application connectiv ity solutions. NA NA

09/01/15 Singapore Telecommunications TrustWave Holdings, Inc. Provides on-demand data security and compliance management solutions. $786 3.6x

08/27/15 Cisco Systems, Inc. OpenDNS, Inc. Application performance infrastructure solutions. NA NA

08/18/15 BMC Software, Inc. Boundary, Inc. Cloud-based network performance and availability monitoring solutions. NA NA

08/17/15 CA, Inc. Xceedium, Inc. Network security software solutions and advisory. NA NA

08/06/15 Comverse, Inc. Acision Ltd. Internet security and domain name system serv ices. $402 2.1x

07/09/15 Splunk, Inc. Caspida, Inc. Messaging infrastructure, consumer, and enterprise solutions. $190 NA

07/09/15 EMC Corporation Virtustream, Inc. On-demand data security and compliance management solutions. $1,200 NA

07/08/15 CA, Inc. Rally Software Development Enterprise data integration software. $466 5.0x

04/24/15 Thoma Bravo, Ontario Teachers Riverbed Technologies Infrastructure software performance optimization solutions. $3,866 3.2x

$483 3.6x

HW&CO. CONFIDENTIAL

69 69

49

58

55

67

38

61

56 55 53

48

56

48

45

50

34

3.1x

4.8x 4.8x

1.8x

2.3x

2.8x

0.6x

1.8x

1.3x

4.0x

2.1x

2.5x2.7x

3.2x

4.5x

3.1x

2.8x

INFRASTRUCTURE SOFTWARE – M&A MARKET SUMMARY

INFRASTRUCTURE SOFTWARE M&A VOLUME (GLOBAL)

In 3Q 2015, Infrastructure Software M&A activity slowed to a four-year low with only 34 transactions registered in the quarter.

Median reported Infrastructure Software M&A revenue multiples decreased slightly in 3Q 2015, however, still remain in line with historical averages.

As cybersecurity becomes a more prevalent focus for enterprises, large infrastructure software buyers are increasingly turning to M&A to bolster their existing security solutions.

Notable cybersecurity transactions include Barracuda’s pending acquisition of Intronis, Carlyle Group’s pending acquisition of Novetta, CA’s acquisition of Xceedium, and EMC’s acquisition of Virtustream.


DATE


ENTERPRISE

VALUE (MM)

REVENUE

MULTIPLE

10

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

3Q '1

1

4Q '1

1

1Q '1

2

2Q '1

2

3Q '1

2

4Q '1

2

1Q '1

3

2Q '1

3

3Q '1

3

4Q '1

3

1Q '1

4

2Q '1

4

3Q '1

4

4Q '1

4

1Q '1

5

2Q '1

5

3Q '1

5

MEDIAN

PAGE | 11



2% 3% 6% 4% 4% 6% 3% 6% 6% 6% 4% 2% 4% 2% 4% 4% 2%

28% 21%

28% 22% 22% 19%

36% 34% 25% 29%

20%

11%

22%

7%

19% 25%

20%

29%

28%

23%

20% 17%

31%

22% 28%

31% 18%

34%

26%

28%

26%

30%

30%

23%

11% 24% 18%

27% 23%

18% 14%

11% 15%

12%

20%

19%

16%

14%

25% 16% 40%

30% 23% 25% 27%

34% 26% 24% 22% 24%

35%

21%

42% 30%

52%

22% 25% 15%

3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15

Seed Series A Series B Series C Series D / or later

PRIVATE PLACEMENT CAPITAL RAISED BY ROUND (AS PERCENTAGE OF TOTAL REPORTED PRIVATE PLACEMENT CAPITAL)

The software sector continued to exhibit strong momentum in 3Q 2015 with private placement deal activity increasing 4% quarter over quarter and total reported capital raised reaching in excess of $11.0 billion for the fourth consecutive quarter.

PRIVATE PLACEMENT ACTIVITY BY SOFTWARE SECTOR

In 3Q 2015, 55% of private capital raised was deployed in late stage rounds (Series C / or later), up from 41% in the prior quarter.

The surge in late stage investment activity suggests a maturing start-up landscape with fewer early stage companies seeking initial rounds of funding.

640

717 710752 749

960

805

912 925 924 900949 934

1113 1096

959 997

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200


$ i

n T

ho

usa

nd

s

Vo

lum

e

Application Software SaaS Data & Analytics Infrastructure Software Total New Capital (Reported)

PRIVATE PLACEMENTS BY SOFTWARE SUB-SECTOR AND NEW CAPITAL RAISED

11

PAGE | 12



SELECT RECENT SOFTWARE PRIVATE PLACEMENTS

ROUND INVESTORS (CURRENT ROUND) DESCRIPTIONCOMPANYDATEROUND

SIZE ($M)SECTOR

TOTAL RAISED

($M)

09/29/2015 SaaS B $50 $56 Goldman Sachs Group, Merchant Banking Div isionProv ider of cloud-based supply chain design and

v isibility software solutions in the U.S. and internationally.

09/23/2015 InfrastructureLate

Stage$77 $175

Accel Partners, Battery Ventures, Glynn Capital Management,

New Enterprise Associates, Norwest Venture Partners, Quadrille

Capital, Jeter Ventures

Prov ider of cloud-based conferencing serv ices that

enable people to connect with each other any time,

any place, and from any dev ice.

09/22/2015Data &

AnalyticsD $60 $89

Austin Ventures, Warburg Pincus, SJF Ventures, Emergence

Capital Partners, Gera Venture Capital, Rethink Education

Prov ider of a predictiv e analytics platform for the higher

education market.

09/14/2015Data &

AnalyticsC $23 $62

August Capital, Morgenthaler, Onset Ventures, QuestMark

Partners, Wil

Prov ider of a trav el intelligence platform that connects

consumers to adv ertisers.

09/08/2015 InfrastructureLate

Stage$75 $230

Glynn Capital Management, Sequoia Capital, Khosla Ventures,

Andreessen Horowitz, Altimeter Capital Management, Greylock

Partners

Prov ider of on-demand identity and access

management software.

08/26/2015 SaaSLate

Stage$82 $177

Adams Street, KPCB, Mayfield, MeriTech, CrossLink Capital, Trinity

Ventures, PTC, QuestMark, Emergence Capital, PremjiInv est, GE

Ventures, Sozo Ventures, Cloud Apps Management

Prov ider of cloud-based field serv ice software solutions

that help companies manage contracts, scheduling,

and maintenance operations.

08/25/2015 Infrastructure C $20 $39 Ignition Partners, Intel Capital, Atlantic Bridge Capital, Amplify

PartnersProv ider of priv ate cloud technologies for businesses.

08/13/2015 SaaSLate

Stage$122 $122 HarbourVest Partners, JMI Equity

Prov ider of cloud-based software for env ironmental,

health and safety, and quality management.

08/12/2015 SaaS C $68 $94 Great Hill Partners, LLC

Prov ider of a SaaS-based health exchange and

benefits engagement platform for employers and

consumers.

08/03/2015 Infrastructure B $110 $148 EMC Corporation, Lightspeed Venture Partners, TPG Growth,

Google CapitalProv ider of a cloud-based internet security platform.

07/23/2015Data &

AnalyticsB $18 $22 Battery Ventures, JVP Media Labs, Vertex Venture Capital

Prov ider of a data and anlytics research engine that is

based on semantic technologies.

07/23/2015Data &

AnalyticsA $24 $26 General Catalyst Partners, BuildGroup Management

Prov ider of Python based data analytics software

solutions and serv ices.

12

Note: Financial information presented above represents reported capital raised only.

PAGE | 13



IT Security

Data Storage

PUBLIC SOFTWARE VALUATION MULTIPLES BY SECTOR

EBITDA MULTIPLE ANALYSIS 3Q 2015 VS. 3Q 2014

3.1x2.8x

3.7x

8.2x

4.4x

3.3x

5.3x

1.2x

4.4x

5.0x

4.0x

7.9x

6.1x

4.1x 4.0x

2.8x

5.8x

2.6x 2.7x

3.6x

9.0x

5.5x

3.4x

6.7x

1.3x

4.7x

5.6x

5.0x

8.3x

5.5x

3.3x3.8x

1.9x

7.5x

3Q 2014 3Q 2015

9.5x

18.4x

11.9x

58.3x

21.3x

14.9x

21.7x

15.8x 14.1x

43.3x

18.6x

62.4x

54.3x

31.7x

17.5x

11.6x 11.0x

7.3x

11.3x 10.8x

63.4x

31.0x

11.6x

24.5x

7.7x

14.5x

18.2x

23.6x

39.9x

29.1x

19.7x

13.6x

7.5x

11.8x

3Q 2014 3Q 2015

REVENUE MULTIPLE ANALYSIS 3Q 2015 VS. 3Q 2014STOCK PERFORMANCE (1- & 3-YEAR)

Bellwethers

Energy

Financial

HCIT

Public Sector

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Large-Cap SaaS

Small-Cap SaaS

Data & Analytics

(8.0%)

6.2%

(2.2%)

11.2%

(10.7%)

16.3%

6.8%

(30.8%)

3.7%

(6.2%)

54.3%

1.3%

(1.3%)

4.9%

(2.7%)

(12.3%)

21.3%

26.1%

(29.5%)

31.5%

41.5%

60.6%

40.3%

46.7%

(37.7%)

39.5%

12.7%

134.6%

72.3%

62.8%

50.7%

(1.8%)

(9.5%)

76.1%

1-Year Performance 3-Year Performance

Network

Management

13

PAGE | 14



`

30% 7% 16% 86% 69% -

23% 24% 11% 81% 66% -

20% 8% 30% 63% 44% 35%

11% 20% 26% - 51% 67%

13% 12% 15% 72% 82% 23%

23% 19% 10% 63% 19% 21%

23% 32% 9% 91% 21% -

12% 14% 17% 96% 62% 69%

11% 21% 32% 43% 4% 87%

13% 13% 26% 65% 62% -

8% 3% 26% 35% - 17%

3% 9% 23% 31% 45% 74%

11% 6% 16% 90% 80% 28%

8% 8% 16% - - -

1% 2% 30% 65% 69% 79%

3% 8% 17% 62% 68% 53%

5% 3% 8% 85% 18% -

KEY METRICS BY SECTOR – COMPARABLE PUBLIC SOFTWARE COMPANIES

9.0x

8.3x

7.5x

6.7x

5.6x

5.5x

5.5x

5.0x

4.7x

3.8x

3.6x

3.4x

3.3x

2.7x

2.6x

1.9x

1.3x

HCM

Large-Cap SaaS

IT Security

SCM

HCIT

Small-Cap SaaS

Marketing Software

Public Sector

Financial

Network Mgmt

Enterprise

Data & Analytics

PLM & Design

Communication

Bellwethers

Data Storage

Energy

EV / LTM REVENUE MULTIPLE NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH NTM REVENUE GROWTH LTM EBITDA MARGINNTM EBITDA GROWTH

COMPARABLE COMPANY SET MEDIANS CORRELATION WITH EV / REVENUE MULTIPLE

14

PAGE | 15



5

8

12

9

7

9

6

16

13 13

11

18

7

11

5

15

3


$0 - 50M $50 - 100M $100 - 250M $250M +

SUMMARY OF TECHNOLOGY IPOS

After a busy 2Q 2015, technology IPO activity came to a near halt in 3Q 2015, with only 3 IPOs priced during the quarter.

SunGard, which had been running a dual track process, filed on June 4 for an IPO that could have raised $750 million, but later SunGard withdrew its IPO plans when it announced that it would be acquired by Fidelity National Information Services (FIS) for $9.1 billion (including debt) in August.

Over the past 12 months, nearly 50% of technology IPOs comprised of companies generating in excess of 75% annual revenue growth leading up to their IPOs.

MARKET CAP AT IPO (LTM) REVENUE GROWTH (1YR PRIOR TO IPO)OFFERING SIZE AT IPO (LTM)

RECENT U.S. IPO ACTIVITY (BY OFFERING SIZE)

20%

34%

46%

< 25% 25 - 75% > 75%

31%

28%

42%

$0-50M $50-500M $500M-$1B $1B+

12%

24%

41%

24%

$0 - 50M $50 - 100M $100 - 250M $250M +

All tech IPOs over the last 12 months All tech IPOs over the last 12 months All tech IPOs over the last 12 months

15

PAGE | 16



98.3%

(23.2%)

32.0%

(1.2%)

53.0%

33.1%

3.3%

(29.7%)

(41.6%)

14.7% 14.7%

(1.2%)

7.4%

17.5%

9.9%

(125.0%)

(100.0%)

(75.0%)

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

12/11/14 12/11/14 12/11/14 1/22/15 2/11/15 3/5/15 4/23/15 5/20/15 6/4/15 6/18/15 6/25/15 6/25/15 6/25/15 7/1/15 7/16/15

$8.0 $14.0 $23.0 $14.0 $27.0 $11.5 $17.0 $25.0 $17.0 $14.0 $8.0 $12.0 $14.0 $19.0 $16.0

$53.1 $100.8 $115.0 $175.0 $600.0 $74.8 $87.0 $222.5 $195.5 $100.1 $56.3 $74.4 $98.0 $156.8 $103.2

(43.0%) 8.5% 65.7% (10.1%) (22.9%) (64.5%) (37.9%) 18.4% (6.1%) 11.6% (2.5%) 40.4% (16.7%) 17.3% 42.2%

Circle Size Denotes Revenue ($)

% R

eve

nu

e G

row

th1

Sto

ck

Pe

rfo

rma

nc

e2

KEY PERFORMANCE METRICS FOR RECENT SOFTWARE IPOS

IPO DATE

OFFER PRICE

OFFERING SIZE ($M)

OFFER TO CURRENT

175.8%

100.5%

186.5%

83.4%

22.2%

61.1%

43.4% 11.8%

150.5%

57.4%

34.8%

102.3%

26.9%

194.4%

52.6%

(50.0%)

(25.0%)

0.0%

25.0%

50.0%

75.0%

100.0%

125.0%

150.0%

175.0%

200.0%

225.0%

250.0%

16

(43.0%)

8.5%

65.7%

(10.1%)

(22.9%)

(64.5%)

(37.9%)

18.4%

(6.1%)

11.6%

(2.5%)

40.4%

(16.7%)

17.3%

42.2%

PAGE | 17



13.4%

4.8%

5.0%

6.7%

14.5%

16.9%

19.2%

19.5%

Other

Other

Food & Beverage

Telecom Equipment

Manufacturing

Technology

Healthcare

Services & Leasing

LBO LOAN VOLUME BY INDUSTRY MEDIAN LBO DEBT PERCENTAGES

DEBT MARKET OVERVIEW

MIDDLE MARKET LBO LOAN MULTIPLES MIDDLE MARKET LBO VOLUME BY QUARTER

1H 2015 New-Issue LBO Loan Volume: $2.9 billion Percentage of Total Purchase Price

Through 1H 2015, middle market LBO leverage multiples have demonstrated a slight decline from 2014 levels.

Middle market LBO loan volumes increased 42% in 3Q 2015 over the prior quarter as lenders continue to remain aggressive for high quality software credits.

In 1H 2015, technology companies were the third largest recipients of LBO loans, signifying continued interest in the software sector.

Median LBO debt as a percentage of total purchase price declined to 59.5%, which is down 12% from highs in 2013, indicating a potential stabilization of debt markets.

4.9x4.8x

4.1x4.0x

3.4x

3.8x 3.8x

4.3x

4.7x 4.7x

5.6x

4.5x

3.3x

4.2x 4.3x4.5x

4.8x

5.3x5.2x

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H15

FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA

62.6% 63.4%

60.3%

50.0%

56.6%

54.5%

60.0%

66.3%

60.0% 59.5%

2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q 2015

17

$1.3B $1.3B

$1.B

$.9B$1.B

$.6B

$.9B

$.6B$.7B

$1.B

$2.B

$1.2B

$1.6B$1.5B

$1.8B

$1.2B

$1.7B

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Institutional Pro Rata

Defined as Issuers with EBITDA of $50 Million or LessDefined as Issuers with EBITDA of $50 Million or Less

PAGE | 18



SELECT HW&CO. TMT TRANSACTIONS

Please contact us regarding our experience in any TMT sector.


APPLICATION

SOFTWARE

ERP and e-

commerce software

has received a majority

investment from

MARKETING

ANALYTICS

Sampling, data collection, and

data analytic solutions


HEALTHCARE

TECHNOLOGY

SaaS-based Medical data

archiving and storage solutions


MARKETING

ANALYTICS

Direct marketing

and analytics for

the automotive

sector


HEALTHCARE

TECHNOLOGY

Pharmacy management

solutions


HEALTHCARE

TECHNOLOGY

SaaS-based software for the

post-acute care industry


REAL ESTATE

SOFTWARE

SaaS-based solutions for home

owner associations


HEALTHCARE

TECHNOLOGY

Technology-based medical

risk management services

has merged with

SUPPLY CHAIN

SOFTWARE

SaaS-based supply chain

management solutions

has received a minority investment from

ENERGY

TECHNOLOGY

SaaS-based energy service

management solutions


MANAGED

SERVICES

Cloud computing and IT services

has received a significant

equity investment from

APPLICATION

SOFTWARE

ERP and e-

commerce software

has acquired

HEALTHCARE

TECHNOLOGY

Medical claims processing

software solutions

has been

recapitalized by

SUPPLY CHAIN

SOFTWARE

Supply-chain

software for the food and

beverage industry


HEALTHCARE

TECHNOLOGY

Clinical and administrative

HCIT systems

has acquired a

majority interest in

APPLICATION

SOFTWARE

Business management

and accounting software


HEALTHCARE

TECHNOLOGY

Regulatory process

management


HCM / HEALTHCARE

TECHNOLOGY

SaaS-based

employee benefits technology provider


DIGITAL

MEDIA

Provider of safety and compliance

information for the aviation market


FINANCIAL

TECHNOLOGY

Property tax collection,

valuation and ancillary solutions

has received a significant

equity investment from

HEALTHCARE

TECHNOLOGY

Medical claims processing

software solutions


INFRASTRUCTURE

SOFTWARE

ITOM, business intelligence, and

security software solutions


HEALTHCARE

TECHNOLOGY

SaaS-based

revenue-cycle management

solutions

HEALTHCARE

TECHNOLOGY

Provider of healthcare

transaction processing



HEALTHCARE

TECHNOLOGY

SaaS-based

clinical guidelines software solutions


NON-PROFIT

SOFTWARE

SaaS-based giving and employee

engagement solutions


INFRASTRUCTURE

SOFTWARE

ITOM, business

intelligence, and security software

solutions

http://www.meddatahealth.com/our_business/index.html

http://www.meddatahealth.com/our_business/index.html

PAGE | 19



Software Bellwethers Google Microsoft Oracle IBM Cisco SAP EMC HP

Communication Software Nuance NICE NeuStar Synchronoss BroadSoft Tangoe MobileIron

Enterprise Software Oracle IBM SAP Adobe Intuit Sage Open Text Progress TOTVS IFS

Human Capital Management (HCM) Workday Ultimate Paycom Cornerstone Paylocity Xactly Halogen

Marketing Software Salesforce HubSpot Marketo Callidus CTCT Bazaarv oice MaxPoint

PLM & Design Software Dassault Autodesk Ansys Synopsys Cadence PTC Mentor Graphics

Supply Chain Management (SCM) Manhattan Aspen Tech Fleetmatics Descartes SPS SciQuest American Amber Road Speed Comm.

Energy Software Silv er Spring OPOWER EnerNOC PSI

Financial Software Fiserv Jack Henry Oracle Financial Solera DH Corp Black Knight Ev estnet Bottomline Q2

Healthcare IT (HCIT) Cerner athenahealth Veev a Inov alon Allscripts Medidata Press Ganey MedAssets HMS Quality Systems

Public Sector Software Constellation Tyler Tech Blackbaud 2U NIC K12

Large-Cap SaaS (≥ $2Bn Mkt Cap) Salesforce Workday NetSuite athenahealth Ultimate Guidewire Solera Veev a Proofpoint Medidata

Large-Cap SaaS (cont'd) Paycom

Small-Cap SaaS (≤ $2Bn Mkt Cap) Demandware Fleetmatics Cornerstone Zendesk LogMein HubSpot Cv ent RealPage Xero RingCentral

Small-Cap SaaS (cont'd) Marketo SPS Qualys Callidus Q2 Benefitfocus MINDBODY AppFolio Alarm.com inContact

Small-Cap SaaS (cont'd) OPOWER Castlight BazaarVoice SciQuest Xactly Fiv e9 Upland Amber Road Connecture

Data & Analytics Splunk Tableau Teradata Qlik Inov alon Verint MicroStrategy Pegasystems PROS Holdings

Network Management VMware Red Hat CA Citrix F5 Networks NetScout SolarWinds Progress Infoblox Radware

Data Storage EMC NetApp Iron Mountain Brocade Nimble Storage CommVault Box Barracuda Carbonite

IT Security Check Point Symantec VeriSign Fortinet FireEye Trend Micro Proofpoint Imperv a AVG Tech Qualys

APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY UNIVERSESA

AS

HO

RIZ

ON

TAL

INFR

A

SO

FTW

AR

EV

ER

TIC

ALA

PP

LIC

ATI

ON

SO

FTW

AR

E

19

PAGE | 20



APPENDIX: SOFTWARE SECTOR PUBLIC COMPANY METRICS

SOFTWARE BELLWETHERS

COMMUNICATION SOFTWARE

ENTERPRISE SOFTWARE

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

20

Enterprise Market % of 52 1-Year Stock 3-Year Stock Revenue Growth LTM EBITDA Enterprise Value / Price /

Company Ticker Value Capitalization Week High Performance Performance LTM NTM Margin LTM Rev. 2015E Rev. 2016E Rev. LTM EBITDA Earnings

Alphabet Inc. GOOG.L $367,526 $427,324 89.5% 8.5% 69.2% 14.4% 11.7% 32.5% 5.3x 5.0x 4.3x 14.0x 28.2x

Microsoft Corporation MSFT 292,936 353,991 88.4% (4.5%) 48.7% 7.8% (4.3%) 35.9% 3.1x 3.3x 3.2x 9.0x 29.0x

Oracle Corporation ORCL 140,599 154,038 77.3% (5.6%) 14.8% (1.1%) (1.1%) 41.5% 3.7x 3.7x 3.7x 7.5x 16.2x

IBM Corporation IBM 172,063 142,002 75.9% (23.6%) (30.1%) (10.4%) (10.6%) 25.7% 2.0x 2.1x 2.1x 7.1x 12.6x

Cisco Systems, Inc. CSCO 97,806 132,859 86.6% 4.3% 37.5% 4.3% 3.9% 27.2% 2.0x 1.9x 1.9x 6.8x 14.8x

SAP SE SAP 84,336 77,158 81.8% (10.4%) (9.3%) 12.8% 16.0% 32.6% 3.9x 3.7x 3.5x 11.7x 22.5x

EMC Corporation EMC 47,664 46,501 78.1% (17.4%) (11.4%) 4.7% 3.4% 21.9% 1.9x 1.9x 1.8x 6.5x 18.8x

Hewlett-Packard Company HPQ 54,779 46,053 62.3% (27.8%) 50.1% (5.5%) (6.6%) 12.0% 0.5x 0.5x 0.5x 4.1x 10.1x

Median $119,203 $137,431 80.0% (8.0%) 26.1% 4.5% 1.2% 29.9% 2.6x 2.7x 2.6x 7.3x 17.5x

Nuance Communications, Inc. NUAN $6,738 $5,071 86.3% 6.2% (34.2%) 1.9% (0.9%) 12.3% 3.5x 3.5x 3.3x 12.9x NM

NICE Systems Ltd. NICE 2,994 3,289 81.5% 34.8% 64.8% 7.4% (8.7%) 19.7% 2.9x 3.2x 3.0x 13.0x 24.3x

NeuStar, Inc. NSR 1,856 1,480 83.3% 9.6% (32.0%) 7.7% 8.1% 39.1% 1.8x 1.8x 1.9x 4.1x 7.9x

Synchronoss Technologies, Inc. SNCR 1,441 1,439 60.7% (28.4%) 43.2% 35.3% 26.7% 28.0% 2.7x 2.5x 2.1x 9.7x 29.6x

BroadSoft, Inc. BSFT 830 881 77.2% 42.4% (27.0%) 25.8% 23.7% 8.7% 3.5x 3.1x 2.6x 16.9x NM

Tangoe, Inc. TNGO 251 283 47.6% (46.9%) (45.2%) 8.3% 7.4% 6.7% 1.2x 1.1x 1.0x 7.6x 213.8x

MobileIron, Inc. MOBL 137 244 23.9% (72.2%) NA 23.3% 14.6% NM 1.0x 0.9x 0.8x NM NM

Median $1,441 $1,439 77.2% 6.2% (29.5%) 8.3% 8.1% 16.0% 2.7x 2.5x 2.1x 11.3x 26.9x

Oracle Corporation ORCL $140,599 $154,038 77.3% (5.6%) 14.8% (1.1%) (1.1%) 41.5% 3.7x 3.7x 3.7x 7.5x 16.2x

IBM Corporation IBM 172,063 142,002 75.9% (23.6%) (30.1%) (10.4%) (10.6%) 25.7% 2.0x 2.1x 2.1x 7.1x 12.6x

SAP SE SAP 84,336 77,158 81.8% (10.4%) (9.3%) 12.8% 16.0% 32.6% 3.9x 3.7x 3.5x 11.7x 22.5x

Adobe Systems Incorporated ADBE 39,249 41,011 94.2% 18.8% 153.5% 10.9% 15.6% 24.1% 8.6x 8.2x 6.6x 36.4x 82.9x

Intuit Inc. INTU 23,414 24,611 81.3% 1.3% 50.7% (1.2%) 9.1% 25.9% 5.6x 5.3x 4.9x 14.5x 67.4x

Sage Group plc SGE 8,924 8,152 85.5% 27.5% 42.2% 1.9% 6.9% 28.4% 4.3x 4.1x 3.9x 14.7x 27.7x

Open Text Corporation OTEX 6,352 5,475 72.5% (19.3%) 62.3% 14.0% 1.9% 28.1% 3.4x 3.4x 3.3x 9.8x 23.4x

Progress Software Corporation PRGS 1,239 1,291 84.5% 8.0% 20.8% 11.4% 24.2% 20.1% 3.4x 2.9x 2.8x 9.9x 85.3x

TOTVS S.A. TOTS3 977 999 75.1% (50.0%) (63.4%) 5.7% 5.6% 21.5% 2.1x 2.0x 1.9x 8.4x 11.6x

Industrial & Financial Systems IFS AB IFS B 833 870 95.2% 15.3% 110.2% 14.1% 13.9% 12.3% 2.1x 2.0x 1.9x 14.1x 30.9x

Median $16,169 $16,382 81.5% (2.2%) 31.5% 8.3% 8.0% 25.8% 3.6x 3.5x 3.4x 10.8x 25.5x

PAGE | 21




MARKETING SOFTWARE

PLM & DESIGN SOFTWARE

HUMAN CAPITAL MANAGEMENT SOFTWARE

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

21

Workday, Inc. WDAY $11,817 $13,221 70.7% (16.5%) NA 58.2% 46.9% NM 12.1x 10.2x 7.5x NM NM

The Ultimate Software Group, Inc. ULTI 5,015 5,117 91.7% 26.5% 75.3% 21.1% 21.9% 12.2% 9.0x 8.1x 6.7x 41.4x 130.2x

Paycom Software, Inc. PAYC 2,106 2,123 86.4% 116.8% NA 46.2% 40.8% 20.6% 11.4x 9.9x 7.7x 85.4x 123.9x

Cornerstone OnDemand, Inc. CSOD 1,792 1,789 81.1% (4.1%) 7.6% 35.7% 29.9% NM 6.0x 5.2x 4.1x NM NM

Paylocity Holding Corporation PCTY 1,439 1,521 77.7% 52.6% NA 40.5% 32.0% NM 9.5x 8.2x 6.4x NM NM

Xactly Corporation XTLY 184 227 77.3% NA NA NA NA NM 2.7x 2.5x 2.0x NM NM

Halogen Software Inc. HGN 103 140 76.2% (26.1%) NA 18.0% 16.3% NM 1.7x 1.6x 1.3x NM NM

Median $1,792 $1,789 77.7% 11.2% 41.5% 35.7% 29.9% 16.4% 9.0x 8.1x 6.4x 63.4x 127.0x

salesforce.com, inc. CRM $46,366 $45,515 88.5% 20.7% 81.9% 25.3% 23.2% 5.3% 7.8x 7.0x 5.8x 52.0x NM

HubSpot, Inc. HUBS 1,456 1,565 84.2% NA NA 55.3% 49.3% NM 10.0x 8.4x 6.5x NM NM

Marketo, Inc. MKTO 1,110 1,214 79.8% (12.0%) NA 46.2% 40.3% NM 6.2x 5.3x 4.0x NM NM

Callidus Software Inc. CALD 855 947 89.9% 41.3% 244.6% 24.2% 23.3% NM 5.5x 5.1x 4.4x NM NM

Constant Contact, Inc. CTCT 599 780 56.1% (10.7%) 39.3% 15.1% 12.0% 12.4% 1.7x 1.6x 1.4x 9.9x 41.4x

Bazaarv oice, Inc. BV 317 363 48.0% (39.0%) (70.2%) 11.7% 7.5% NM 1.6x 1.6x 1.4x NM NM

MaxPoint Interactiv e, Inc. MXPT 78 106 36.3% NA NA 60.4% NA NM 0.6x 0.9x 0.7x NM NM

Median $855 $947 79.8% (10.7%) 60.6% 25.3% 23.2% 8.8% 5.5x 5.1x 4.0x 31.0x 41.4x

Dassault Systemes SA DSY $17,308 $18,573 90.4% 14.7% 40.3% 22.9% 21.2% 24.4% 5.9x 5.4x 5.0x 20.0x 48.9x

Autodesk, Inc. ADSK 9,081 9,984 67.9% (19.9%) 32.4% 7.1% (1.1%) 7.9% 3.6x 3.7x 4.1x 20.6x NM

Ansys, Inc. ANSS 7,104 7,945 90.3% 16.5% 20.1% 5.1% 1.8% 46.0% 7.5x 7.4x 6.8x 15.2x 31.3x

Synopsys Inc. SNPS 6,291 7,202 87.7% 16.3% 40.0% 8.4% 8.5% 18.8% 2.9x 2.8x 2.6x 9.2x 30.2x

Cadence Design Systems Inc. CDNS 5,630 6,026 94.6% 20.2% 60.7% 10.0% 7.7% 23.5% 3.4x 3.3x 3.1x 11.6x 30.6x

PTC Inc. PTC 3,973 3,624 74.2% (14.0%) 45.8% (1.9%) (7.3%) 20.0% 3.0x 3.2x 3.2x 11.0x 39.4x

Mentor Graphics Corp. MENT 2,862 2,887 90.0% 20.2% 59.2% 8.1% 3.2% 22.9% 2.2x 2.2x 2.1x 9.6x 18.4x

Median $6,291 $7,202 90.0% 16.3% 40.3% 8.1% 3.2% 22.9% 3.4x 3.3x 3.2x 11.6x 31.0x



PAGE | 22




Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

ENERGY SOFTWARE

FINANCIAL SOFTWARE

SUPPLY CHAIN MANAGEMENT SOFTWARE

22

Manhattan Associates, Inc. MANH $4,465 $4,574 89.2% 86.4% 335.1% 17.1% 13.1% 28.4% 8.4x 8.0x 7.3x 31.3x 49.8x

Aspen Technology, Inc. AZPN 2,970 3,185 81.1% 0.5% 46.7% 12.5% 6.9% 41.9% 6.7x 6.5x 6.1x 16.7x 26.9x

Fleetmatics Group PLC FLTX 1,734 1,888 93.6% 61.0% NA 27.0% 22.3% 26.3% 6.7x 6.1x 5.0x 24.5x 50.0x

The Descartes Systems Group Inc TSX: DSG 1,287 1,332 96.4% 28.0% 101.9% 8.8% 9.2% 30.6% 7.3x 6.9x 6.2x 25.1x 75.2x

SPS Commerce, Inc. SPSC 1,006 1,127 87.3% 27.7% 76.5% 25.0% 23.6% 9.8% 7.0x 6.4x 5.3x 58.0x 384.8x

SciQuest, Inc. SQI 150 278 54.8% (33.5%) (45.1%) 4.7% 3.0% 5.1% 1.5x 1.4x 1.3x 7.8x NM

American Software, Inc. AMSW.A 204 270 89.4% 6.8% 15.4% 4.6% 10.5% 12.5% 1.9x 1.8x 1.7x 11.9x 29.4x

Amber Road, Inc. AMBR 107 111 24.5% (75.7%) NA 11.4% 6.8% NM 1.6x 1.5x 1.3x NM NM

Speed Commerce, Inc. SPDC 120 15 6.0% (92.9%) (87.6%) 23.5% 37.8% NM 0.9x 0.8x NM NM NM

Median $1,006 $1,127 87.3% 6.8% 46.7% 12.5% 10.5% 26.3% 6.7x 6.1x 5.2x 24.5x 49.9x

Silv er Spring Networks, Inc. SSNI $527 $645 84.7% 33.5% NA 27.7% 2.6% NM 1.6x 1.9x 1.6x NM NM

OPOWER, Inc. OPWR 338 459 47.5% (52.8%) NA 27.3% 14.8% NM 2.5x 2.3x 1.9x NM NM

EnerNOC, Inc. ENOC 220 222 41.5% (53.4%) (39.1%) 21.3% (10.5%) 9.7% 0.4x 0.5x 0.5x 3.0x 274.6x

PSI Aktiengesellschaft PSAN 186 209 90.8% (8.9%) (36.3%) 2.0% 6.5% 5.6% 0.9x 0.9x 0.8x 12.3x 35.8x

Median $279 $341 66.1% (30.8%) (37.7%) 24.3% 4.5% 7.6% 1.3x 1.4x 1.2x 7.7x 155.2x

Fiserv , Inc. FISV $24,023 $20,317 95.7% 34.0% 134.0% 4.1% 4.2% 30.5% 4.7x 4.6x 4.3x 14.5x 28.0x

Jack Henry & Associates Inc. JKHY 5,488 5,584 97.0% 25.1% 83.9% 7.1% 6.4% 34.8% 4.4x 4.2x 4.0x 12.7x 26.4x

Oracle Financial Serv ices Software Ltd. 532466 4,509 5,102 88.8% 8.5% 5.7% (0.7%) 15.0% 39.6% 7.5x 6.7x 6.1x 19.5x 28.8x

Solera Holdings Inc. SLH 6,081 3,620 92.4% (4.2%) 23.1% 15.6% 11.2% 36.2% 5.3x 5.1x 4.7x 13.5x NM

DH Corporation DH 4,504 3,087 88.7% (1.2%) 39.5% 22.9% 29.0% 25.1% 4.7x 3.9x 3.4x 16.6x 36.8x

Black Knight Financial Serv ices, Inc. BKFS 4,812 2,213 91.0% NA NA NA NA 34.4% 5.4x 5.1x 4.8x NM NM

Env estnet, Inc. ENV 1,017 1,067 51.5% (33.4%) 156.2% 25.0% 18.7% 11.8% 2.6x 2.4x 1.9x 18.4x 85.3x

Bottomline Technologies (de), Inc. EPAY 989 974 81.3% (9.4%) 1.3% 10.1% 8.6% 13.2% 3.1x 2.9x 2.6x 12.2x NM

Q2 Holdings, Inc. QTWO 804 923 81.2% 76.6% NA 41.8% 36.2% NM 8.6x 7.5x 5.7x NM NM

Median $4,509 $3,087 88.8% 3.7% 39.5% 10.1% 11.2% 32.4% 4.7x 4.6x 4.3x 14.5x 28.8x



PAGE | 23




Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

PUBLIC SECTOR SOFTWARE

LARGE-CAP SAAS

HEALTHCARE IT

23

Cerner Corporation CERN $20,755 $20,691 79.2% 0.7% 55.0% 24.0% 33.2% 28.1% 5.4x 4.6x 4.0x 18.2x 41.1x

athenahealth, Inc. ATHN 5,337 5,152 87.0% 1.3% 45.3% 24.2% 22.2% 7.4% 6.4x 5.8x 4.8x 38.3x 676.6x

Veev a Systems Inc. VEEV 2,662 3,100 69.5% (16.9%) NA 37.9% 28.2% 24.5% 7.4x 6.7x 5.4x 30.5x 62.0x

Inov alon Holdings, Inc. INOV 2,575 3,082 61.7% NA NA 19.1% 20.8% 35.8% 6.7x 5.9x 4.8x 19.3x 46.0x

Allscripts Healthcare Solutions, Inc. MDRX 2,938 2,343 80.5% (7.6%) (0.2%) (0.0%) 2.0% 5.8% 2.1x 2.1x 2.0x 14.5x NM

Medidata Solutions, Inc. MDSO 2,309 2,329 68.7% (4.9%) 102.9% 19.8% 20.5% 10.2% 6.3x 5.7x 4.8x 30.8x 319.8x

Press Ganey Holdings, Inc. PGND 1,731 1,557 84.3% NA NA NA NA 9.2% 5.8x 5.5x 5.1x NM NM

MedAssets, Inc. MDAS 2,034 1,204 83.9% (3.2%) 12.7% 9.8% 5.9% 29.2% 2.7x 2.7x 2.6x 8.7x NM

HMS Holdings Corp. HMSY 824 777 37.0% (53.5%) (73.7%) (2.9%) 5.2% 19.2% 1.8x 1.8x 1.6x 7.4x 57.5x

Quality Systems Inc. QSII 636 753 66.6% (9.4%) (32.6%) 9.2% 3.9% 10.5% 1.3x 1.3x 1.2x 9.0x 26.4x

Median $2,442 $2,336 74.4% (6.2%) 12.7% 14.4% 13.2% 14.9% 5.6x 5.0x 4.4x 18.2x 57.5x

Constellation Software Inc. TSX: CSU $9,068 $8,849 93.5% 65.8% 296.3% 17.6% 9.5% 17.3% 5.3x 5.0x 4.2x 25.6x 64.7x

Tyler Technologies, Inc. TYL 4,852 5,056 97.6% 68.9% 239.2% 18.2% 17.5% 22.5% 9.0x 8.4x 7.3x 38.8x 73.9x

Blackbaud Inc. BLKB 2,830 2,585 87.7% 42.8% 134.6% 13.4% 14.0% 16.3% 4.8x 4.4x 3.9x 23.6x 97.5x

2U, Inc. TWOU 1,522 1,611 90.5% 130.3% NA 33.9% 34.3% NM 11.8x 10.3x 8.0x NM NM

NIC Inc. EGOV 1,049 1,157 87.3% 2.8% 19.7% 8.9% 7.2% 25.2% 3.7x 3.6x 3.3x 13.7x 29.7x

K12, Inc. LRN 320 477 70.2% (22.1%) (38.4%) 3.1% (8.2%) 6.8% 0.3x 0.4x 0.4x 2.8x 43.4x

Median $2,176 $2,098 89.1% 54.3% 134.6% 15.5% 11.8% 17.3% 5.0x 4.7x 4.0x 23.6x 64.7x

salesforce.com, inc. CRM $46,366 $45,515 88.5% 20.7% 81.9% 25.3% 23.2% 5.3% 7.8x 7.0x 5.8x 52.0x NM

Workday, Inc. WDAY 11,817 13,221 70.7% (16.5%) NA 58.2% 46.9% NM 12.1x 10.2x 7.5x NM NM

NetSuite Inc. N 6,525 6,632 73.7% (6.3%) 31.5% 35.0% 33.7% NM 10.1x 8.8x 6.7x NM NM

athenahealth, Inc. ATHN 5,337 5,152 87.0% 1.3% 45.3% 24.2% 22.2% 7.4% 6.4x 5.8x 4.8x 38.3x NM

The Ultimate Software Group, Inc. ULTI 5,015 5,117 91.7% 26.5% 75.3% 21.1% 21.9% 12.2% 9.0x 8.1x 6.7x 41.4x 130.2x

Guidewire Software, Inc. GWRE 3,163 3,734 86.4% 18.6% 69.3% 8.6% 8.0% 5.9% 8.3x 8.1x 7.4x 41.8x 377.8x

Solera Holdings Inc. SLH 6,081 3,620 92.4% (4.2%) 23.1% 15.6% 11.2% 36.2% 5.3x 5.1x 4.7x 13.5x NM

Veev a Systems Inc. VEEV 2,662 3,100 69.5% (16.9%) NA 37.9% 28.2% 24.5% 7.4x 6.7x 5.4x 30.5x 62.0x

Proofpoint, Inc. PFPT 2,339 2,414 83.0% 62.4% 306.2% 38.5% 31.6% NM 10.3x 9.1x 7.2x NM NM

Medidata Solutions, Inc. MDSO 2,309 2,329 68.7% (4.9%) 102.9% 19.8% 20.5% 10.2% 6.3x 5.7x 4.8x 30.8x 319.8x

Paycom Software, Inc. PAYC 2,106 2,123 86.4% 116.8% NA 46.2% 40.8% 20.6% 11.4x 9.9x 7.7x 85.4x 123.9x

Median $5,015 $3,734 86.4% 1.3% 72.3% 25.3% 23.2% 11.2% 8.3x 8.1x 6.7x 39.9x 225.0x



PAGE | 24




SMALL-CAP SAAS

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

24

Demandware, Inc. DWRE $1,759 $1,945 68.1% 1.5% 62.8% 47.8% 45.5% NM 9.0x 7.5x 5.6x NM NM

Fleetmatics Group PLC FLTX 1,734 1,888 93.6% 61.0% NA 27.0% 22.3% 26.3% 6.7x 6.1x 5.0x 24.5x 50.0x

Cornerstone OnDemand, Inc. CSOD 1,792 1,789 81.1% (4.1%) 7.6% 35.7% 29.9% NM 6.0x 5.2x 4.1x NM NM

Zendesk, Inc. ZEN 1,448 1,734 69.9% (8.7%) NA 69.1% 57.5% NM 8.9x 7.2x 5.2x NM NM

LogMeIn, Inc. LOGM 1,458 1,695 90.4% 47.9% 203.9% 26.9% 19.7% 10.1% 6.0x 5.5x 4.7x 30.1x 202.2x

HubSpot, Inc. HUBS 1,456 1,565 84.2% NA NA 55.3% 49.3% NM 10.0x 8.4x 6.5x NM NM

Cv ent, Inc. CVT 1,238 1,401 97.2% 32.7% NA 31.7% 30.6% 0.4% 7.5x 6.7x 5.4x 73.2x NM

RealPage, Inc. RP 1,337 1,316 71.9% 7.2% (26.5%) 11.6% 14.6% 7.6% 3.1x 2.9x 2.6x 19.9x NM

Xero Limited. XRO 1,130 1,302 56.6% (43.0%) 122.7% 77.7% 70.2% NM 14.3x 9.2x 5.8x NM NM

RingCentral, Inc. RNG 1,165 1,277 86.7% 42.8% NA 35.3% 32.0% NM 4.6x 4.0x 3.2x NM NM

Marketo, Inc. MKTO 1,110 1,214 79.8% (12.0%) NA 46.2% 40.3% NM 6.2x 5.3x 4.0x NM NM

SPS Commerce, Inc. SPSC 1,006 1,127 87.3% 27.7% 76.5% 25.0% 23.6% 9.8% 7.0x 6.4x 5.3x 58.0x 384.8x

Qualys, Inc. QLYS 812 970 51.3% 7.0% 101.0% 24.1% 23.9% 20.7% 5.5x 4.9x 4.0x 29.1x 27.5x

Callidus Software Inc. CALD 855 947 89.9% 41.3% 244.6% 24.2% 23.3% NM 5.5x 5.1x 4.4x NM NM

Q2 Holdings, Inc. QTWO 804 923 81.2% 76.6% NA 41.8% 36.2% NM 8.6x 7.5x 5.7x NM NM

Benefitfocus, Inc. BNFT 850 898 65.8% 16.0% NA 33.6% 28.1% NM 5.3x 4.8x 3.9x NM NM

MINDBODY, Inc. MB 521 612 89.6% NA NA NA NA NM 6.1x 5.3x 4.0x NM NM

AppFolio, Inc. APPF 505 565 91.2% NA NA NA NA NM 8.3x 6.9x 4.8x NM NM

Alarm.Com Holdings, Inc. ALRM 720 531 60.9% NA NA 25.4% NA 12.9% 3.9x 3.7x 3.2x NM 41.8x

inContact, Inc. SAAS 425 463 63.0% (13.6%) 15.5% 36.1% 24.0% NM 2.1x 2.0x 1.7x NM NM

OPOWER, Inc. OPWR 338 459 47.5% (52.8%) NA 27.3% 14.8% NM 2.5x 2.3x 1.9x NM NM

Castlight Health, Inc. CSLT 232 396 31.3% (67.5%) NA 121.2% 66.2% NM 3.8x 3.1x 2.0x NM NM

Bazaarv oice, Inc. BV 317 363 48.0% (39.0%) (70.2%) 11.7% 7.5% NM 1.6x 1.6x 1.4x NM NM

SciQuest, Inc. SQI 150 278 54.8% (33.5%) (45.1%) 4.7% 3.0% 5.1% 1.5x 1.4x 1.3x 7.8x NM

Xactly Corporation XTLY 184 227 77.3% NA NA NA NA NM 2.7x 2.5x 2.0x NM NM

Fiv e9, Inc. FIVN 168 186 58.4% (43.4%) NA 22.4% 20.0% NM 1.5x 1.4x 1.2x NM NM

Upland Software, Inc. UPLD 119 121 64.8% NA NA 25.0% 10.0% NM 1.7x 1.7x 1.6x NM NM

Amber Road, Inc. AMBR 107 111 24.5% (75.7%) NA 11.4% 6.8% NM 1.6x 1.5x 1.3x NM NM

Connecture, Inc. CNXR 139 100 31.7% NA NA 25.7% 16.4% NM 1.5x 1.4x 1.2x NM NM

Median $812 $923 69.9% (1.3%) 62.8% 26.9% 23.3% 9.9% 5.5x 4.9x 4.0x 29.1x 126.1x



PAGE | 25



NETWORK MANAGEMENT


DATA & ANALYTICS

Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

25

Splunk, Inc. SPLK $6,256 $7,111 72.0% (0.0%) 50.7% 46.8% 40.3% NM 11.6x 9.9x 7.5x NM NM

Tableau Software, Inc. DATA 5,001 5,731 60.7% 9.8% NA 71.4% 52.4% NM 9.5x 8.0x 5.8x NM NM

Teradata Corporation TDC 3,780 4,101 61.6% (30.9%) (61.6%) (3.9%) (5.5%) 18.5% 1.4x 1.5x 1.4x 5.1x NM

Qlik Technologies, Inc. QLIK 3,060 3,367 86.4% 34.8% 62.8% 14.1% 11.0% 0.2% 5.3x 5.0x 4.2x 74.1x NM

Inov alon Holdings, Inc. INOV 2,575 3,082 61.7% NA NA 19.1% 20.8% 35.8% 6.7x 5.9x 4.8x 19.3x 46.0x

Verint Systems Inc. VRNT 3,067 2,681 64.9% (22.4%) 57.3% 14.3% 4.3% 13.9% 2.6x 2.5x 2.3x 11.0x NM

MicroStrategy Inc. MSTR 1,805 2,233 86.8% 50.2% 46.5% (5.2%) (6.6%) 20.8% 3.2x 3.3x 3.1x 62.4x 34.5x

Pegasystems Inc. PEGA 1,657 1,884 88.2% 28.8% 69.5% 11.4% 13.1% 12.1% 2.7x 2.5x 2.2x 20.1x 60.7x

PROS Holdings, Inc. PRO 612 656 72.5% (12.1%) 16.1% 15.5% (5.3%) NM 3.3x 3.5x 3.5x NM NM

Median $3,060 $3,082 72.0% 4.9% 50.7% 14.3% 11.0% 16.2% 3.3x 3.5x 3.5x 19.7x 53.3x

VMware, Inc. VMW $27,766 $33,255 82.9% (16.0%) (18.6%) 13.2% 10.0% 25.7% 4.4x 4.2x 3.8x 12.9x 37.4x

Red Hat, Inc. RHT 12,741 13,189 88.2% 28.0% 26.2% 14.3% 14.1% 19.0% 6.7x 6.5x 5.6x 28.0x 67.6x

CA, Inc. CA 10,629 12,048 81.7% (2.3%) 6.0% (4.9%) (4.6%) 32.2% 2.5x 2.6x 2.6x 6.0x 14.3x

Citrix Systems, Inc. CTXS 11,570 11,133 88.3% (2.9%) (9.5%) 4.0% 2.8% 23.1% 3.7x 3.6x 3.4x 13.9x 40.5x

F5 Networks, Inc. FFIV 7,425 8,222 85.1% (2.5%) 10.7% 13.3% 11.3% 31.7% 3.9x 3.8x 3.4x 10.8x 22.7x

NetScout Systems, Inc. NTCT 3,356 3,563 76.6% (22.8%) 38.7% 5.6% 131.9% 26.4% 7.5x 4.0x 2.5x 24.2x 62.1x

SolarWinds, Inc. SWI 2,759 3,006 73.4% (6.7%) (29.6%) 22.2% 18.1% 30.9% 5.9x 5.4x 4.6x 13.6x 34.4x

Progress Software Corporation PRGS 1,239 1,291 84.5% 8.0% 20.8% 11.4% 24.2% 20.1% 3.4x 2.9x 2.8x 9.9x 85.3x

Infoblox Inc. BLOX 611 941 57.0% 8.3% (31.3%) 22.3% 21.3% NM 2.0x 1.8x 1.5x NM NM

Radware Ltd. RDWR 670 750 65.3% (7.9%) (9.7%) 12.7% (3.6%) 20.4% 2.9x 2.9x 2.6x 16.6x 24.5x

Median $5,390 $5,893 82.3% (2.7%) (1.8%) 12.9% 12.7% 25.7% 3.8x 3.7x 3.1x 13.6x 37.4x



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Large-Cap

SaaS

Small-Cap

SaaS

Data &

Analytics

Network

Management

Data Storage

IT Security

Software

Bellwethers

Communication

Enterprise

HCM

Marketing

PLM & Design

SCM

Energy

Financial

HCIT

Public Sector

IT SECURITY

DATA STORAGE

26



EMC Corporation EMC $47,664 $46,501 78.1% (17.4%) (11.4%) 4.7% 3.4% 21.9% 1.9x 1.9x 1.8x 6.5x 18.8x

NetApp, Inc. NTAP 5,267 8,729 67.8% (31.1%) (10.0%) (5.2%) (5.1%) 12.1% 0.9x 0.9x 0.9x 3.7x 19.8x

Iron Mountain Incorporated IRM 11,225 6,540 74.7% (5.0%) (9.1%) (0.4%) (1.8%) 29.7% 6.1x 3.7x 3.6x 12.0x 61.0x

Brocade Communications Systems, Inc. BRCD 3,775 4,304 80.1% (4.5%) 75.5% 1.5% 1.8% 26.2% 1.7x 1.7x 1.6x 5.9x 12.7x

Nimble Storage, Inc. NMBL 1,665 1,878 75.0% (7.1%) NA 58.9% 48.6% NM 6.0x 4.9x 3.6x NM NM

CommVault Systems, Inc. CVLT 1,133 1,545 62.3% (32.6%) (42.1%) (1.7%) (4.0%) 4.7% 1.9x 2.0x 1.8x 8.6x 132.9x

Box, Inc. BOX 1,317 1,514 50.9% NA NA NA 37.1% NM 5.1x 4.4x 3.4x NM NM

Barracuda Networks, Inc. CUDA 616 829 33.3% (39.3%) NA 17.4% 15.8% 1.6% 2.1x 2.0x 1.7x 8.4x NM

Carbonite, Inc. CARB 241 306 72.1% 8.7% 58.8% 12.3% 12.5% NM 1.8x 1.7x 1.6x NM NM

Median $1,665 $1,878 72.1% (12.3%) (9.5%) 1.5% 3.4% 17.0% 1.9x 2.0x 1.8x 7.5x 19.8x

Check Point Software Technologies Ltd. CHKP $13,120 $14,347 89.6% 14.6% 64.7% 8.6% 8.8% 53.5% 8.4x 8.1x 7.5x 15.0x 21.4x

Symantec Corporation SYMC 11,429 13,224 71.3% (17.2%) 8.3% (6.4%) (4.1%) 28.8% 1.8x 1.9x 1.8x 5.4x 17.4x

VeriSign, Inc. VRSN 7,982 8,008 98.2% 28.0% 44.9% 4.4% 4.4% 61.8% 7.7x 7.6x 7.2x 11.8x 23.4x

Fortinet Inc. FTNT 6,397 7,271 84.4% 68.1% 76.1% 27.0% 30.7% 7.8% 7.4x 6.4x 5.2x 45.3x 549.9x

FireEye, Inc. FEYE 4,572 5,073 57.5% 4.1% NA 97.4% 50.4% NM 8.6x 7.1x 5.2x NM NM

Trend Micro Inc. TSE: 4704 3,758 4,798 86.3% 4.1% 25.8% 8.8% 8.3% 34.3% 3.7x 3.6x 3.5x 11.6x 26.7x

Proofpoint, Inc. PFPT 2,339 2,414 83.0% 62.4% 306.2% 38.5% 31.6% NM 10.3x 9.1x 7.2x NM NM

Imperv a Inc. IMPV 1,802 2,047 88.5% 127.9% 77.0% 30.1% 32.2% NM 9.4x 8.3x 6.7x NM NM

AVG Technologies N.V. AVG 1,284 1,136 74.6% 31.2% 126.6% 5.1% 15.6% 30.3% 3.2x 3.0x 2.6x 9.3x 26.3x

Qualys, Inc. QLYS 812 970 51.3% 7.0% 101.0% 24.1% 23.9% 20.7% 5.5x 4.9x 4.0x 29.1x 27.5x

Median $4,165 $4,935 83.7% 21.3% 76.1% 16.5% 19.7% 30.3% 7.5x 6.7x 5.2x 11.8x 26.3x

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Industrials

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