siemer & associates saas industry report summer 2013

Embedded Specialized Accomplished

Summer 2013

SaaS Report

2 Summer 2013

Siemer SaaS Report

Table of Contents

Section I Industry Trends and Dynamics

Section II SaaS Market Overview by Region

Section III SaaS Subsector: CRM

Section IV SaaS Subsector: ERP

Section V

Section VI

Section VII

Section VIII

SaaS Subsector: HR Management

Select Transaction Case Studies

Appendix – SaaS Business Model Factors

Appendix – Public and Transaction Comparables

INDUSTRY TRENDS AND DYNAMICS

4 Summer 2013

Siemer SaaS Report

The SaaS Opportunity

The SaaS business model continues to be an industry darling in the recurring revenue business,

venture capital/PE world and public markets, but growth needs to be managed appropriately

― 83.0% of all companies expect to adopt SaaS technology

― Revenue will be generated from multiple sources (existing base, upsells, new accounts)

― Sales & marketing strategies require utilizing both its internal sales force and various distribution channels

― The contract to internet Media companies, SaaS companies are driven less by media hype

SaaS business models tend to require significant capital to reach breakeven

― Industry veterans and strong CEOs will recognize this and build their startup appropriately

― Cash needs can be partially addressed through discounted customer “up-front” payments

Today’s market is a shifting landscape

― Valuations are down significantly for smaller opportunities, with less impact to quality players

― Almost no license software companies are being funded

Source: Wall Street Research

5 Summer 2013

Siemer SaaS Report

SaaS Trends

The SaaS market is expected to grow 16.8% from $14.3bn in 2012 to $16.7bn in 2013, with projections

of $21.3bn for 2015

Most large SaaS companies such as SAP and Oracle reported solidly higher sequential revenues in

Q4 2012, averaging 5.8%

― Although initial 2013 outlooks have been conservative, publicly traded SaaS companies historically present

lower EPS in Q1 than in Q4 due to early year investments to support accelerated organic growth

Overall valuations for the SaaS industry have been generally attractive, as companies have typically

been trading at over 4.5x LTM revenue

The growth in “smart computing,” in which apps provide direct access to data that is used for decision

making purposes, will continue fueling growth in SaaS

― Smart computing apps overlap with SaaS products, as the browser-based access model for SaaS products

works better for collaboration among internal and external participants than behind-the-firewall deployments

The European SaaS market is expected to slow, however, a projected annual IT spending growth of

9.0% in emerging markets will continue to drive the market forward

M&A in the SaaS space is projected to increase significantly, with projections indicating over $25.0bn

in SaaS acquisitions over the next 20 months, compared to $17.0bn in the prior 20-month period

Continuing increases in the proliferation of Mobile and PaaS will continue to fuel overall SaaS growth

Source: Gartner, Forrester

6 Summer 2013

Siemer SaaS Report

SaaS Revenue Trends SaaS companies expect to see higher revenues as the business model rises in popularity and scope

Source: Gartner

$10.0

$12.1

$14.3

$16.7

$18.9

$21.3

$0

$5

$10

$15

$20

$25

2010A 2011A 2012E 2013P 2014P 2015P

Saa

S R

even

ue

($b

n)

7 Summer 2013

Siemer SaaS Report

Market Performance

16.0%

5.0%

14.0%

14.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

Cloud Computing & SaaS

Enterprise

NASDAQ Composite Index

Overall Coverage Median

2013 Median Stock Appreciation

While SaaS companies have appreciated approximately in line with overall market indicators, their

relatively stronger growth profiles indicate a higher potential upside compared to general market

averages

Cloud computing and SaaS companies have outperformed enterprise and security firms overall, with

SaaS mean and median stock growth reaching 13.0% and 16.0%, respectively, compared to 9.0% and

5.0% for enterprise and security, respectively

Past seasonal trends indicate a likely gradual increase in SaaS growth in the second half of the year


8 Summer 2013

Siemer SaaS Report

Technology M&A by Industry From 2011 to 2012, Software M&A deals increased from 32.1% to 35.4% of the technology industry’s deal flow

19.7%

7.7%

15.2%

5.7%

18.0% 17.0%

13.5%

32.4% 32.1%

35.4%

0%

10%

20%

30%

40%

2011 2012

Semiconductor IT Services Internet Hardware Software

Company growth has become more reliant on web-based application software

SaaS can help make existing company hardware more easily accessible by consumers

Trends show that corporations seek to establish industry staying power by implementing progressive

technology


9 Summer 2013

Siemer SaaS Report

Migration Towards Mobile Technology A growing smartphone industry necessitates compatibility

Growing reliance on mobile apps to promote tablet and mobile compatibility

― Apps run in conjunction with cloud-based services

― Greater efficiency and ease-of-access

4G capabilities eliminate the need for specialized interfaces and physical systems

― Multiple users can access important resources over a network

By 2015, mobile application development will exceed PC projects by four times

Adoption of tablets for enterprise planning will grow by nearly 50.0% annually

― Popularity of “Bring-Your-Own-Device (BYOD)” programs increase ease-of-use

― Tablet wireless demand as a percentage of total wireless demand is projected to rise

2013 Smart Mobile Device

(SMD) sales are expected to:

― Grow by 20.0%

― Generate 20.0% of IT sales

― Drive 57.0% of IT market

growth

Smart Mobile Device Growth

1.5 2.0 2.5 4.0 4.5 5.3

7.0 8.0 10.0

12.0 14.0

0.0 0.1 0.1

0.1 0.4

1.0

1.5 2.0

2.5

3.0

3.5

0

5

10

15

20

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Total Wireless Demand Excluding Tablets Tablet Wireless Demand Contribution


Wireless Data Usage

Tri

llio

ns

of

Meg

aByt

es

10 Summer 2013

Siemer SaaS Report

Migration Towards Mobile Technology Mobile data traffic growth has increased considerably over the past year

Source: Ericsson

10 12 15 20 25 30 40 45 60 80

110

160 180

200 220

300

380 400

490

620

770

830

1010

1300

0

200

400

600

800

1000

1200

1400

Q1 '07

Q2 '07

Q3 '07

Q4 '07

Q1 '08

Q2 '08

Q3 '08

Q4 '08

Q1 '09

Q2 '09

Q3 '09

Q4 '09

Q1 '10

Q2 '10

Q3 '10

Q4 '10

Q1 '11

Q2 '11

Q3 '11

Q4 '11

Q1 '12

Q2 '12

Q3 '12

Q4 '12

To

tal M

on

thly

Tra

ffic

(P

etaB

ytes

)

11 Summer 2013

Siemer SaaS Report

Data security

Cloud outages

Compliance with government data-

protection regulations

Inconsistent performance across

servers

Software integration

SaaS Concerns

One size does not fit all

― SaaS delivery model is not a universal application across

software systems

― CRM and human capital management (HCM) are a natural fit

because both need solutions that can easily scale up or down

and add new users

― Product lifecycle management (PLM) has slow levels of

scalability and non-mobile end-users

Relative cost effectiveness

― Various software such as business process management

(BPM) have little to do with the derivative source of an

application and more to do with organizational complexity,

accounting for their lower SaaS application rate

― Hardware and software infrastructure costs for these software

types are minimal to begin with

― This dramatically reduces cost advantages

Distribution of mobility of the

targeted end-user base

Desired speed of software

scalability

Level of importance for the security

of sensitive data

Key Indicators

Source: IDC

More Disadvantages

A non-viable solution for all software categories

12 Summer 2013

Siemer SaaS Report

SaaS Concerns

Analysts argue that SaaS operational performance expectations are over-estimated despite higher

revenue growth rates

― The general belief that SaaS companies generate free cash flow in relation to revenue at a rate similar to that

of traditional software companies fails to take into account the higher capital expenditures and operational

expenses of SaaS companies

Recent research supports this claim, as the SaaS space has experienced significantly lower free cash

flow since 2008, compared to perpetual based software companies such as Adobe

The SaaS sector has actually shown relatively lower margins due to data-center hosting costs, which

are not typically incurred by traditional software companies

Free Cash Flow Growth Rates

10.5%

15.1%

10.2% 9.5%

17.4%

21.7%

24.2% 23.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

5 YR CAGR 3 YR CAGR 2012 Y/Y Growth 2011-2013E CAGR

Perpetual SaaS

35.2%

40.3%

29.5%

22.2%

8.9% 8.7%

-8.2%

11.3%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

5 YR CAGR 3 YR CAGR 2012 Y/Y Growth 2011-2013E CAGR

Perpetual SaaS Source: Wall Street Research

Revenue Growth Rates

13 Summer 2013

Siemer SaaS Report

SaaS is a Capital Intensive Business Model SaaS companies have traditionally required heavy upfront financing

Several successful SaaS companies have historically raised over $20.0mm pre-IPO

Capital requirements are expected to decline due to:

― Lower CAC (SaaS becoming mainstream, new channels, etc.)

― Lower IT costs (PaaS, LAMP stack, etc.)

Heavy financing costs are offset by future growth, margins and licensing cash flow reliability


$99.0

$50.0

$37.0

$29.0 $24.0

$12.0

$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

SalesForce NetSuite Constant Contact LogMein Vocus Median SW Enterprise

Capital Raised Pre-IPO for Select Public SaaS Companies (in millions)

14 Summer 2013

Siemer SaaS Report

Collaboration

Perform project planning

Run seamless project management program

Effective and economical business solution

Allow for work to be conducted in distributed

environments

Fastest growing vertical in SaaS

SMEs (Small and Medium Enterprises) Large Enterprises

Incorporate social networking

Allow for flexibility and mobility

Specific features as and when needed

Facilitate company-wide task management

Communicate with extended team of customers

and venders

SaaS for Enterprises – Framework for Customization and Application Business Logic


E-mail service

Management portal (incl. APIs)

Advertising/Marketing

ReportingGoogle integration

Dashboard

Website engine

Webshop engine

Document management

Inventory

CRM

Accounting

Payment module

24/7 Support

Online and offline

traning

Business partner Enterprise Customer

Social network integration

SAAS MARKET OVERVIEW BY REGION

16 Summer 2013

Siemer SaaS Report

7,800.0

2,835.5

1,157.9

331.1

9,100.0

3,369.4

1,429.3

419.7

$0

$2,000

$4,000

$6,000

$8,000

$10,000

North America Europe Asia Latin America

Reg

ion

al S

aaS

Rev

enu

e ($

mm

)

2011A 2012E

US 60%

UK 6%

Germany 6%

Japan 4%

Canada 4%

France 3%

Other 17%

Global Market Trends

2011-2012 SaaS Global Market Revenue 2012 SaaS Global Market Volume


North America has the highest overall growth due to the strength of its Internet

infrastructure and a positive outlook for US tech market growth

European markets remain stagnant due to recent economic conditions

Asia sees increased growth due to a need for advanced software solutions

Latin America sees huge technological development following economic

advances

US remains the clear leader

― Where the SaaS model was developed

― No cultural barriers

Other nations are significantly behind

― Fear of 3rd party control

― Security concerns

― Lack of Internet bandwidth

17 Summer 2013

Siemer SaaS Report

Flexibility of customization

Limited software integration to

existing systems

Global Markets – North America

North America, specifically the US, represents the largest

opportunity for SaaS and is the most mature of the regional markets

― NA projected to account for 60.8% of worldwide SaaS revenue by 2015

SaaS software revenues are estimated to be $9.1bn in 2012, up

from $7.8bn in 2011

North America shows the highest SaaS deployments in expense

management, financials, email and office suites

There is greater use of web conferencing technology in North

America than in other regions due to a highly distributed workforce

The US is expected to be the primary growth market

― Strong demand for new mobile, cloud and smart technologies

― The US tech market is anticipated to have 5.4% growth in 2013, 6.7%

growth in 2014

Primary Concerns

Emerging

Collaboration software

Established

Expense management

Financials

Email

Office suites

Web conferencing

Prevalent Software Categories

Speed of deployment

Ease of programming and overall accessibility

Limited capital expense

Factors for SaaS Adoption

Source: Forrester, Gartner

18 Summer 2013

Siemer SaaS Report

Emerging

F&A

HR

Project and portfolio

Business intelligence

Established

Purchasing

CRM

Collaboration software

Global Markets – Europe

2012 SaaS revenues are estimated to be $3.2bn in Western

Europe, up from $2.7bn in 2011, while SaaS revenues in Eastern

Europe are estimated at $169.4mm from last year’s $135.5mm

SaaS offerings and adoption rates in more developed sub-regions

of Western Europe (e.g. UK, Ireland, Netherlands) are rapidly

increasing as a result of:

― North America-based SaaS vendors entering the region

― Culturally open outlook toward technology adoption

― Well-established Internet infrastructures

― Increasing number of local European SaaS vendors

The opportunity for SaaS adoption exists longer-term in the smaller

emerging markets of Eastern Europe, the Middle East and Africa

due to ongoing infrastructure challenges


Security

Ability to integrate existing

applications

Primary Concerns

Total cost of ownership (TCO)

Speed of deployment

Regional scalability

Global software accessibility


Source: Forrester, Gartner

19 Summer 2013

Siemer SaaS Report

Asia/Pacific

Financials and accounting

(particularly in China & India)

ERP

Office suites

Email

CRM

Japan

CRM

Email

Groupware

Global Markets – Asia

SaaS revenues in Asia/Pacific are estimated to be $1.4bn in 2012,

up from $1.2bn in 2011

― Revenues in Japan alone, the largest SaaS market in the region, are

estimated at $495.2mm in 2012, up from $427.0mm in 2011

Overall, SaaS adoption in the Asia/Pacific region is fragmented

― Mature markets: Japan, Australia, New Zealand, Hong Kong,

Singapore, South Korea and Taiwan

― Emerging markets: China, India, Malaysia, Thailand, Indonesia,

Vietnam and the Philippines

The main reason for slow growth lies in cross-cultural language

and technology vernacular barriers


Sales force automation and marketing analysis solutions

Advanced enterprise applications

Lower deployment costs

Ease and speed of deployment


Longer-than-expected

deployment times

Educating the market

Localization

Primary Concerns

Source: Gartner

20 Summer 2013

Siemer SaaS Report

Global Markets – Latin America

SaaS revenues in Latin America reached an estimated $419.7mm

in 2012, up 27% from $331.1mm last year

Brazil and Mexico drive a majority of adoption and revenue

opportunities

In a survey conducted by NetSuite, almost one-third of IT directors

and managers of large Latin American corporations indicated that

more than 25.0% of corporate-wide software licenses within their

organizations are delivered as a service

60.0% of the respondents indicated they would consider the SaaS

model during their next ERP upgrade or migration

Emerging

Packaged CRM

Procurement

ERP applications

Established

Sales force automation

Customer service

Expense management

Email

Financial accounting


Ability to customize

Localized content

Performance

Business continuity

Primary Concerns

Ability to access cloud-based solutions from anywhere

Ease of implementation

Seamless upgrade

Overall cost reduction

Reduced upfront investments


Source: Gartner

SAAS SUBSECTOR: CRM

22 Summer 2013

Siemer SaaS Report

Opportunity

CRM remains the largest SaaS system application worldwide

“Social Era” communication and relationships conducted mostly through social media and internet

In 2012, 40.0% of all CRM systems sold were SaaS based

The global CRM market grew 12.5% from $16.0bn to $18.0bn from 2011 to 2012, 3.0x the average of all enterprise

software categories

Communications, media and IT services were the biggest spenders on CRM in 2012 due to call center requirements

CRM Submarket

Central Applications

― Customer service and support

― Sales force automation

― Marketing

― eCommerce

Additional Applications

― Appointments

― Small business

― Social media

CRM SaaS CRM SaaS identifies and analyzes customer needs to optimize overall operations

Source: Forbes, Wall Street Research

2012 Worldwide Spending by Central Application

37.0% 36.0%

30.0%

17.0%

0%

10%

20%

30%

40%

Customer Service & Support

Sales Marketing E-Commerce

CR

M S

pen

din

g (

%)

eCommerce

23 Summer 2013

Siemer SaaS Report

Growth Drivers

Vested vendor interests

Ubiquitous Internet accessibility

Easier-to-deploy CRM systems compared to

on-premise alternatives

Rapid improvement in application functionality

General backlash against software licensing model

Reduced up-front cost and low lifetime risk

Critical Success Factors

Maintain a true thin-client technology focus

― Improve software performance

― Increase scalability

― Facilitate flexibility

Continue to target defined market focus

Preserve industry focus

― Vertical market business application

CRM SaaS CRM SaaS identifies and analyzes customer needs to optimize overall operations

By 2014, the number of mobile CRM apps available for

download will have grown to 1,200 from 200 in 2012, a

500.0% increase

By 2016, more than 50.0% of total CRM software revenue will

be delivered as SaaS

Projected Outlook

Source: IDC

Salesforce 14.0% SAP

12.9%

Oracle 11.1%

Microsoft 6.3% IBM

3.6% Adobe 3.1%

Nice Systems 2.5%

Verint Systems

2.4%

Amdocs 2.3%

SAS 2.2%

Others 39.7%

Sample CRM Companies

2012 Worldwide CRM Market Share by Vendor

24 Summer 2013

Siemer SaaS Report

$3,852.0

$4,484.0

$5,073.0

$5,707.0

$6,397.0

$3,244.0

$3,837.0

$4,611.0

$5,416.0

$6,332.0

$1,758.0 $2,012.0

$2,288.0 $2,597.0

$2,951.0

$1,276.0 $1,581.0

$1,944.0

$2,324.0

$2,753.0

$0.0

$2,000.0

$4,000.0

$6,000.0

$8,000.0

2011 2012 2013 2014 2015

Rev

enu

e ($

mm

)

Customer Relationship Management (CRM)

Content, Communications and Collaboration

Enterprise Resource Planning (ERP)

Supply Chain Management (SCM)

CRM SaaS

Software Revenue Forecast (2011-2015 )

SaaS Delivery within Enterprise Application Software

Software Revenue Forecast (2012-2016 )

CRM Submarket

CRM is projected to remain the most popular application software to utilize SaaS delivery

Source: Gartner

$5,549.0

$6,032.0

$6,609.0

$7,228.0

$7,940.0

$4,265.0 $4,605.0

$4,990.0

$5,433.0 $5,810.0

$3,098.0 $3,449.0

$3,798.0

$4,214.0

$4,697.0

$0.0

$2,000.0

$4,000.0

$6,000.0

$8,000.0

$10,000.0

2012 2013 2014 2015 2016

Rev

enu

e ($

mm

)

Sales

Customer Service and Support

Marketing Automation

SAAS SUBSECTOR: ERP

26 Summer 2013

Siemer SaaS Report

ERP SaaS ERP SaaS consolidates internal and external data to manage business operations

Execution and Benefits

Rent ERP software on a lease basis; integrating

resource planning on a cloud system

SaaS ERP systems reduce implementation costs

― Faster deployment

― No physical servers

Costs are reduced with SaaS ERP with high

demand for IT resources in managing and

installing development applications

Risk Factors Associated with SaaS

Larger businesses may not align with software

Costs are continually incurred as long as system

is in place

Software cannot be changed

Dependent on Internet connection

By 2014, the CAGR for SaaS ERP market is expected

to be 15.8%, almost 3.0x greater than CAGR for

overall software market

The industry is expected to grow to $32.0bn by 2016

Projected Outlook

Source: Forbes, Gartner

2012 Worldwide ERP Market Share by Vendor

Sample ERP Companies

SAP 25%

Oracle 13%

Sage 6%

Infor 6%

Microsoft 5%

Kronos 2% Totvs 2% Concur 2% YonYou 1% UNIT4

1%

Others 37%

27 Summer 2013

Siemer SaaS Report

ERP SaaS Cost of capital determines SaaS savings as compared to On-Premise systems (mid-sized company)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

ER

P C

ost

s

SaaS On-Premise

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000


ER

P C

ost

s

SaaS On-Premise

Source: ERP Cloud News

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000


ER

P C

ost

s

SaaS On-Premise

Costs are reduced with SaaS ERP with high

demand for IT resources in managing and

installing development applications

Avoid ongoing costs as a variable of capital

Low upfront expenses

Less hidden costs

Benefits 15% Cost of Capital

No Cost of Capital 3% Cost of Capital

SAAS SUBSECTOR: HR MANAGEMENT

29 Summer 2013

Siemer SaaS Report

HRM SaaS

Growing demands for HR solutions

$10.0bn worldwide market

Growing at 18.0%-22.0% CAGR

US SaaS HRM adoption rate: 92.0%

European SaaS HRM adoption rate: 61.0%

From 2010-2012, there were 30 major

acquisitions in the talent management software

market alone

In recent years, large corporations such as

Oracle and SAP have begun focusing on HR

SaaS

Source: Ephor Group, Forrester, CedarCrestone, Bersin

HRM SaaS Advantages

Projected Outlook

In secondary and tertiary markets, enterprise

providers with their “bundled” outsource service

offerings are not present. With this unsatisfied

demand, there is an opportunity for accelerated

organic revenue growth of anywhere from

18.0% to 22.0% per year

HRM SaaS manages all aspects of HR activity in a cloud-computing environment

Increases productivity by replacing manual input

functions with automated ones

Employee verifications, employment application

processes and employee benefits administrative

tasks can be delivered in a self-service format

Significantly saves costs over the majority of on-

premise HR software applications that are

typically incorporated into ERP systems

Sample HRM Companies

30 Summer 2013

Siemer SaaS Report

Companies that adopt SaaS HR solutions

Outperform the competition based on key comparable and

financial benchmarks

More flexible resource-efficient cost structures

Average annual HR administration expenditures per

employee is greater than $1,000 for SMBs without a unified

HR system versus less than half of that for enterprises with

SaaS HR

Organizations choosing an ERP with an HRM SaaS-based

talent management approach outperform with as much as

48% greater sales per employee than those choosing a

different solution

HRM SaaS

Source: Apprenda, Ephor Group

SaaS HRM services

Workforce optimization (job management, contingent labor and labor costs management)

Self-service for employee and manager “consumerism” (e.g. access to information and tools)

HR systems strategy (HR Analytics, Social, Global and Mobile)

Enterprise portal and transaction cost reductions

Ability to manage employee information on a real time basis

SaaS HR Systems

offer efficiencies

Applicant tracking

Time and attendance

management

Benefits management

Directory management

Electronic forms

processing Leave

management

Employee self service functionality

Holiday management

Payroll management

Recruitment and

performance management

HRM SaaS manages all aspects of HR activity in a cloud-computing environment

31 Summer 2013

Siemer SaaS Report

SELECT TRANSACTION CASE STUDIES

32 Summer 2013

Siemer SaaS Report

Microsoft – Yammer M&A Case Study

Source: Capital IQ and Siemer & Associates’ Proprietary Research Database

Key Deal Metrics Yammer’s Products / Services Date Announced: June 15th, 2012

Date Closed: July 18th, 2012

Implied Enterprise Value: $1.2bn

Deal Structure:

Microsoft Corporation entered into a definitive agreement to acquire

Yammer, Inc. for $1.2bn in cash on June 15th, 2012

Yammer joined the Microsoft Office Division and the division is being

led by President Kurt DelBene

Financing History:

Yammer had received $142.0mm in five rounds of venture funding prior

to the acquisition.

Description: Yammer is an enterprise social network that brings together

employees, content, conversations and business data in a single location.

Yammer empowers employees to be more productive by enabling them to

collaborate in real-time across departments, geographies and business

applications. Employees can additionally create groups to collaborate on

projects and share and edit documents. The service can be accessed

through the web, desktop and mobile devices, and Yammer provides both

free and premium versions.

Deal Commentary The Yammer deal positions Microsoft more aggressively as a player in the development of social media services specifically for enterprises, an area where

competitors like Oracle, Salesforce and IBM have been active as well

Microsoft’s initial concerns involved figuring out ways to successfully monetize Yammer

One year after Microsoft’s acquisition, Yammer’s subscriber base is up 55% to nearly 8.0mm users, characterized by more customers paying for the

premium services and much tighter Microsoft integration

Microsoft’s future plans for Yammer include further integration between Yammer and email, enhanced document collaboration and expanded Yammer

messaging and external communication

33 Summer 2013

Siemer SaaS Report

SAP – Ariba M&A Case Study

Date Announced: May 22nd, 2012

Date Closed: October 1st, 2012

Implied Enterprise Value: $4.4bn

Implied EV/LTM Revenue Multiple: 8.8x

Deal Structure:

SAP America, Inc. entered into an agreement to acquire Ariba Inc. for

$4.6bn in cash on May 22, 2012

SAP paid $45 per share to the holders of Ariba’s common stock and

restricted units and also paid $9.13mm in cash for acquiring all the

outstanding options of Ariba Inc.

Ariba ceased to be an independent public company and will be wholly-

owned by SAP

The existing management team continues to lead Ariba Inc., which

operates under the name “Ariba", an SAP company

Key Deal Metrics

Deal Commentary

SAP indicates that the acquisition combined Ariba’s successful buyer-seller collaboration network with SAP’s own customer base and solutions in order to

create new models for business-to-business collaboration in the cloud

With the acquisition, SAP will acquire the leader in cloud-based collaborative business commerce, as Ariba boasts $444 million in total revenue and 38.5%

annual growth in 2011

SAP believes the addition of Ariba will create the business network of the future, through delivering immediate value to their customers and providing

another solid engine for driving the company’s growth in the cloud

Description: Ariba, Inc. is the leading provider of collaborative business

commerce solutions. Ariba combines industry-leading technology to

optimize the complete commerce lifecycle with the world’s largest web-

based community to discover, connect and collaborate with a global

network of trading partners. The company’s services deliver everything

needed to control costs, minimize risk, improve profits and enhance cash

flow and operations, all in a cloud-based environment.

Ariba’s Products / Services

Source: Capital IQ and Siemer & Associates’ Proprietary Research Database

34 Summer 2013

Siemer SaaS Report

Date Announced: May 6th, 2013

Market Cap: $6.5bn

TEV: $6.3bn

LTM Revenue: $2.3bn

LTM EBITDA: $694.4mm

LTM EV/EBITDA: 9.1x

Deal Structure:

Bain Capital Private Equity, GIC Special Investments Pte. Ltd., Golden

Gate Private Equity, Inc. and Insight Venture Partners acquired 100% of

BMC Software’s equity for $46.25 per share in cash

Key Deal Metrics

Deal Commentary

By becoming a private company, BMC can provide for more flexibility. Through additional investing freedom, the Company can foster innovation and deliver cutting edge

solutions for its clientele.

Buyout firms are increasingly acquiring mature technology companies positioned to support debt through steady cash flows

Attractive debt financing rates are driving PE firms to leverage larger deals

Source: Capital IQ and Siemer & Associates’ proprietary research database

Description: BMC Software, Inc. develops software that provides system and

service management solutions for enterprises internationally

BMC Software Products / Services

BMC Buyout Case Study

APPENDIX – SAAS BUSINESS MODEL FACTORS

36 Summer 2013

Siemer SaaS Report

Summary of Key Metrics The following metrics represent key ratios demonstrated by several successful SaaS companies

CMRR

CAC

CLTV

Cash

Churn

Growth Rate

Upsell vs. New Customers

New CMRR

CMRR Renewal Cost

G&A as a % of Sales

R&D as a % of Sales

FCF

Payment Terms

Professional Services GM

Churn Rate

50% +

Upsells ≥ Churn

CAC > 1

<30% of Annualized GM

CLTV > 0

G&A ~ 15% at Scale

R&D ~ 10% at Scale

Breakeven at 50% Growth Rate

1-Year Upfront Mix > 50%

> 0 on Project Basis

Churn <12%


Metric Measurement Target

37 Summer 2013

Siemer SaaS Report

Key Metrics for Growth: CMRR

Committed Monthly Recurring Revenue (CMRR)

Full Transparency:

― Employee assessment

― Operational planning

― Financing

― Valuation

CMRR

Expenses

Existing Contracts

Renewals

Upsell & Expansion

New Accounts

Break Even

Time

Nu

mb

er o

f C

ust

om

ers


38 Summer 2013

Siemer SaaS Report

CAC ratio: Defining your S&M spend

Key Metrics for Growth: Customer Acquisition Cost (CAC) Customer Acquisition Cost (CAC): The cost of a business to acquire a new customer

CAC Ratio = [GPQ – GPQ-1] x 4

Sales & MarketingQ-1

CAC < 1/3 (3 years to payback or more) Refine business model

Require pullback of sales model

Reduce sales & marketing expense

CAC > 1 (payback in less than 1 year) Sign of healthy SaaS model in operation

Investment of more money is accretive to operational

income

The cost to acquire customers has increased due to

the current macroeconomic environment


39 Summer 2013

Siemer SaaS Report

Customer Lifetime Value (CLTV) Measures Profitability This analysis can help management adjust both budgeted R&D and G&A expenses

Example: 1 customer generating $1 of Annual Recurring Revenue (ARR)

Profits are being generated with CLTV > 0

Year 1 Year 2 Year 3 Year 4 Year 5

Period Length 0.5 1.5 2.5 3.5 4.5

Revenue 1.0 1.0 1.0 1.0 1.0

COGS 0.3 0.3 0.3 0.3 0.3

Gross Profit 0.7 0.7 0.7 0.7 0.7

CAC (0.7) - - - -

Account Management - (0.1) (0.1) (0.1) (0.1)

R&D (0.1) (0.1) (0.1) (0.1) (0.1)

G&A (0.1) (0.1) (0.1) (0.1) (0.1)

Operating Profit (0.2) 0.4 0.4 0.4 0.4

Discount Rate ( 12.5% ) 0.94 0.84 0.74 0.66 0.59

Cash Flows From Customer (0.19) 0.34 0.30 0.26 0.24

CLTV 0.9


40 Summer 2013

Siemer SaaS Report

Churn Defines the Viability of the Business Model

MRR churn (<12.0% p.a. and < Upsell)

Customer churn

Root Causes

― Pricing / value

― UI and workflow complexity

― Downtime

Monitoring

― Overall application usage (login frequency and time)

― Application usage (frequency, function used, etc.)

Acting

― Competitive analysis / sales tools

― Usage monitoring and follow-up

― GUI / workflow redesign

― Platform stability

― Increased discount for early payment

$100

$80

$64

$51

$0

$40

$80

$120

Start of Year 1 End of Year 1 End of Year 2 End of Year 3


Benchmark

Effect of 20.0% Churn on MRR Base

APPENDIX – PUBLIC AND TRANSACTION COMPARABLES

42 Summer 2013

Siemer SaaS Report

Select SaaS Public Comparables

Source: CapitalIQ and Siemer Proprietary Research

(figures in millions of $USD, except per share) Share Price as of Market Enterprise EV / LTM EV / CY 2013E LTM Annual

General Software 6/25/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

BMC Software $44.75 $6,383.1 $6,213.7 2.8x 10.2x 2.7x 7.1x 1.4%

CA Technologies 27.24 12,337.7 10,976.7 2.4x 6.6x 2.5x 6.5x -3.6%

Concur Technologies $77.00 $4,299.0 $4,090.8 8.5x NM 5.7x 25.5x 22.3%

International Business Machines 193.54 214,596.0 236,057.0 2.3x 8.9x 2.2x 8.0x -3.5%

Microsoft 33.72 281,557.6 222,534.6 2.9x 7.3x 2.5x 5.7x 4.1%

Oracle 30.17 142,120.6 128,398.6 3.5x 7.4x 3.2x 6.4x 0.2%

SAP 71.07 84,751.7 85,334.4 4.0x 11.7x 3.3x 9.5x 13.2%

Mean $99,086.5 3.8x 8.7x 3.2x 9.8x 4.9%

Median $85,334.4 2.9x 8.2x 2.7x 7.1x 1.4%


Security Software 6/25/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

Check Point Software Technologies $49.30 $9,684.3 $8,299.2 6.1x 10.9x 5.6x 9.6x 5.7%

LogMeIn 24.01 583.8 378.5 2.6x NM 2.2x 9.0x 14.8%

Sourcefire 52.69 1,637.9 1,432.0 6.1x NM 4.3x 20.7x 28.6%

Symantec 22.01 15,329.5 13,673.5 2.0x 7.2x 1.9x 5.2x 2.6%

Websense 24.71 906.0 892.0 2.5x 16.4x 2.4x 15.3x -1.5%

Mean $4,935.0 3.9x 11.5x 3.3x 11.9x 10.0%

Median $1,432.0 2.6x 10.9x 2.4x 9.6x 5.7%

43 Summer 2013

Siemer SaaS Report

Select SaaS Public Comparables



CRM Software 6/25/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

Constant Contact 16.05 492.9 395.6 1.5x 20.8x 1.3x 7.7x 16.1%

DealerTrack Holdings 33.70 1,465.6 1,459.0 3.6x 25.1x 2.8x 11.0x 10.5%

Salesforce.com 36.95 21,798.1 21,392.6 6.6x NM 4.5x 25.9x 32.1%

Vocus 10.24 216.0 253.4 1.4x NM 1.3x 10.4x 48.4%

Mean $5,875.1 3.3x 22.9x 2.5x 13.7x 26.8%

Median $927.3 2.6x 22.9x 2.1x 10.7x 24.1%


ERP Software 6/25/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

NetSuite 85.69 6,322.4 6,145.7 18.6x NM 11.7x NM 31.3%

QAD 11.11 171.4 114.0 0.5x 9.9x 0.4x 5.1x -0.5%

Red Hat 45.91 8,710.5 7,856.8 5.7x 28.3x 4.7x 16.1x 16.4%

Mean $4,705.5 8.2x 19.1x 5.6x 10.6x 15.7%

Median $6,145.7 5.7x 19.1x 4.7x 10.6x 16.4%


HRM Software 6/25/2013 Cap (mm) Value (EV) Revenue EBITDA Revenue EBITDA Revenue Growth

ADP $68.38 $33,179.5 $31,514.5 2.8x 13.1x 2.5x 12.1x 6.4%

Cornerstone OnDemand 44.43 2,267.4 2,198.1 16.7x NM 8.6x NM 61.9%

Ultimate Software Group 113.06 3,125.7 3,057.2 8.7x NM 6.2x 28.9x 24.4%

Workday 63.05 10,907.7 10,123.2 NM NM 15.2x NM 88.3%

Mean $11,723.3 9.4x 13.1x 8.1x 20.5x 45.2%

Median $6,590.2 8.7x 13.1x 7.4x 20.5x 43.1%

44 Summer 2013

Siemer SaaS Report

Select Precedent SaaS Financings


Amount

Date Company Description Investors Raised ($mm) Round

06/11/13 Rackwise Software and services in the growing market for IT

infrastructure management and data center monitoring

Black Diamond Financial Group;

Navesink Capital Advisors

$3.9 NA

06/06/13 Shandong Inspur E-

Government Software

E-governance software solutions including integrated

monitoring, efficiency supervision and public service

systems

Shandong Inspur Software 5.7 NA

06/05/13 Bitsight Technologies Develops computer security technology software Commonwealth Capital Ventures;

Globespan Capital Partners; Menlo

Ventures; Flybridge Capital Partners

24.0 A

06/04/13 Axeda Cloud platform for connected products and M2M

applications

Wipro 5.0 B

06/03/13 Canvas Solutions Mobile application solutions construction and contracting,

service industry, inspections and surveys and sales force

automation

Osage Partners ; Motorola Solutions

Venture Capital

4.0 C

05/31/13 iSight Security Provides cyber security risk management solutions for

federal and commercial entities

NA 3.0 NA

05/31/13 Petrotechnics Frontline work execution solutions for oil and gas

companies and operators in the United Kingdom and

internationally

Business Growth Fund 9.1 NA

05/30/13 Numecent Holdings Engages in the digital delivery, deployment and

provisioning of software and other non-linear assets

through virtualization

T-Venture Holding; Endeavour Ventures 13.6 B

05/29/13 CloudByte Provides solutions for shared storage environments, such

as security, isolation and service level assurance

Nexus Venture Partners; Fidelity Growth

Partners India; Kae Capital

4.0 B

05/29/13 Virtual Piggy Operates as a technology company that delivers an online

eCommerce solution in the United States and Europe

NA 6.0 NA

05/28/13 ConnectEdu Provides Web-based college and career access solutions NA 16.0 D

05/23/13 Maxx Technologies Develops liquor inventory management systems for the

hospitality industry

NA 3.5 NA

05/22/13 Digital Signal Conducts research and development of three-dimensional

facial recognition systems for the department of defense

and other federal agencies

Technology Control 50.0 C

45 Summer 2013

Siemer SaaS Report

Amount


05/22/13 SLYCE Commerce Develops visual recognition purchasing platform that allows

discovering and purchasing the things users like online

NA $3.8 NA

05/17/13 SmartMetric Research and development of biometric security solutions NA 5.1 NA

05/17/13 Visier Builds business analytic applications focusing on people

management

Foundation Capital; Summit Partners 15.0 B

05/17/13 Sight Machine Designs and develops software for vision analysis NA 6.0 NA

05/17/13 EdgeSpring Provides visual analytics and business intelligence

solutions

Kleiner, Perkins, Caufield & Byers;

Lightspeed Venture Partners

9.0 A

05/16/13 Triggit Provides real-time media management solutions North Atlantic Capital; Spark Capital;

Foundry Group

6.0 B

05/16/13 Atlantis Computing Provides virtual desktop infrastructure (VDI) storage and

performance optimization solutions for IT organizations

Adams Street Partners; Cisco Systems;

El Dorado Ventures; Partech International

20.0 D

05/15/13 PernixData Provides an enterprise-class software platform for

application acceleration


Lightspeed Venture Partners

20.0 NA

05/15/13 OpenGeo Develops open source geospatial software solutions to

organizations in the United States and internationally

Vanedge Capital 3.0 A

05/14/13 HipLogiq Changes how businesses and brands reach and engage

with people

RLB Holdings; Hadron Global Partners 5.0 A

05/09/13 Movable Develops email software for companies Intel Capital; WS Investments; Silicon

Valley Bank; Contour Venture Partners;

Metamorphic Ventures; ff Venture

Capital; Kima Ventures

11.0 NA

05/08/13 PROGNOZ ZAO Business intelligence and business performance

management solutions for corporations and government

agencies

NA 10.9 NA

05/07/13 Safe-T Software solutions for data security, secure email,

managed file transfer, secure front end and anti-virus

applications

NA 5.0 NA



46 Summer 2013

Siemer SaaS Report



Amount


05/06/13 Ontuitive Designs, develops and delivers performance support

solutions for business enterprises

NA $4.7 NA

05/03/13 mobeam Develops a light based communications technology NA 3.0 A

05/03/13 Axiologix Acquires and owns VoIP and cloud services spaces Ironridge Technology 7.5 NA

05/02/13 Axiomatics Offers authorization solutions for customers worldwide Monterro Holdings; Coach & Capital;

Almi Invest

6.5 NA

05/02/13 VMTurbo Provides intelligent workload management software

solutions for cloud and virtualized environments

Highland Capital Partners; Globespan

Capital Partners; Bain Capital

7.5 B

05/01/13 GridGain Systems Provides Java-based open source middleware platform for

data business analytics and processing

NA 10.0 A

05/01/13 LucidWorks Provides enterprise-grade embedded search

development platforms

Granite Ventures; Walden International;

Shasta Ventures

12.0 C

05/01/13 GraphLab Designs and develops a machine learning analytics engine

for graph datasets

Madrona Venture Group; New Enterprise

Associates

6.8 A

05/01/13 M-Files Develops document management software and provides

cloud-based document management services

DFJ Esprit; Finnish Industry Investment 7.8 A

04/23/13 Seclore Technology Offers data security solutions Ventureast Fund Advisors India; Helion

Venture Partners

6.0 A

04/23/13 Infinity Augmented

Reality

Engages in the development of augmented reality software

applications

Platinum Management (NY) 5.0 NA

04/22/13 TransLattice Provides on-premise or in the cloud data for enterprise,

cloud and hybrid environments in the United States and

internationally

NA 12.0 A

04/16/13 Quadriserv Provides transformational market structure changes to

beneficial owners, agent and custodial banks, broker

dealers and hedge funds

NA 3.4 NA

47 Summer 2013

Siemer SaaS Report



Amount


04/16/13 CommuniTake Provides a remote service platform for mobile devices Cellebrite Mobile Synchronization $3.0 NA

04/16/13 Good Technology Provides application-to-application workflows that include

integrated email, communications, document management,

BI, social business and wireless printing

NA 60.1 E

04/12/13 Createthe Group Provides digital campaigns, communications platforms and

commerce solutions for fashion and retail brands

NA 3.0 NA

04/12/13 Mobile Labs Mobile application testing solutions for enterprises NA 3.5 NA

04/12/13 Panviva Develops and delivers business process guidance

systems

SBI Ven Capital 4.2 B

04/11/13 nuPSYS Technologies Provides network automation control center solutions to

offer a 3D multi-touch control center monitoring application

with a graphical user interface

AVentures Capital 5.0 A

04/09/13 Moment Systems Provides digital advertising solutions for advertisers and

agencies

Redpoint Ventures; CBC Capital; WPP

Digital; KPCB China

10.0 NA

04/08/13 Scientific Learning Develops, distributes and licenses technology that

accelerates learning by improving the processing

efficiency of the brain

Nantahala Capital; Trigran Investments;

Blackwell Partners; RJ Partnership

4.6 NA

04/08/13 Vidyo Provides telepresence solutions for video conferencing

worldwide

Menlo Ventures; Rho Capital; Star

Ventures; QuestMark; Triangle Peak;

Juniper Networks; The Four Rivers

17.0 D

04/05/13 MarketShare Partners Provides cross media analytics solutions FTV Capital; Elevation Partners 38.0 NA

04/05/13 ZeRTO Enterprise-class disaster recovery and business continuity

solutions for virtualized data centers and cloud

environments

Battery Ventures; Greylock Partners;

U.S. Venture Partners; RTP Ventures

13.0 C

04/04/13 Kaazing Provides Web communication solutions for living Web

applications

New Enterprise Associates; Columbus

Nova Technology Partners

15.0 NA

04/03/13 StreetLight Data Geospatial BI solutions for marketing, site selection, urban

planning and economic development apps

T-Venture Holding; Vision Ridge Partners 3.6 A

48 Summer 2013

Siemer SaaS Report


Select Precedent SaaS Financings Amount


04/03/13 Redknee Solutions Communication software, solutions and services to

wireless, wireline, broadband and satellite network

operators

NA $44.0 NA

04/02/13 Belmont Technology Develops cloud based CAD software solutions for product

design

Commonwealth Capital; New Enterprise

Associates; North Bridge Venture

Partners

25.0 A

04/02/13 Midokura Develops network virtualization software solutions Docomo Innovation; Innovation Network

Corporation; SMBC Venture Capital

17.3 A

04/01/13 RetailNext Provides in-store retail analytics August Capital; StarVest Partners; Nokia

Growth Partners; Commerce Ventures

15.0 C

03/31/13 Iddiction Offers online mobile application searching solutions NA 5.5 NA

03/29/13 ForgeRock Develops identity oriented middleware platform for

companies and government organizations worldwide

Accel Management; Foundation Capital 15.2 B

03/28/13 Vantrix Provides mobile video mediation and delivery solutions

for streaming, browsing and messaging worldwide

NXT Capital Venture Finance 4.5 B

03/27/13 Opentech Sistemas de

Gerenciamentos

Develops tracking and risk management solutions for

logistics and transportation sectors

DLM Invista Asset Management 5.0 NA

03/27/13 Malauzai Software Provides mobile solutions for small and medium sized

community-based financial institutions and IT companies

NA 3.0 NA

03/27/13 Adapx Provides interface software solutions for collaboration, field

data collection and decision making

OVP Venture Partners; Pelion Venture

Partners; Paladin Capital Group;

Northwest Technology Ventures

3.5 B

03/27/13 The Nintex Group IT company that focuses on SharePoint technologies,

including software, services and cloud based solutions

TA Associates Management; Updata

Partners

313.2 NA

03/26/13 Interactive

Achievement

Assessment and reporting software solutions for school

districts in Virginia, South Carolina, Tennessee and Indiana

NA 3.5 NA

03/26/13 Clean Power Finance Provides residential financing products and solar sales

quoting and design tools for the solar industry


Edison; Hennessey; Claremont Creek;

Sand Hill Angels; Google Ventures

60.0 NA

49 Summer 2013

Siemer SaaS Report



Amount


03/26/13 Nexess Develops and sells security management solutions for

nuclear and Seveso-type plants

Turenne Capital Partenaires; Seventure

Partners

$3.2 B

03/25/13 Realeyes Data

Services

Provides Web-based facial expression measurement

solutions for video advertisements

Entrepreneurs Fund Management; AS

SmartCap

3.2 A

03/25/13 TraceVector Develops enterprise-grade Network Intrusion Detection

Systems (NIDS) that stand alone on a network and use

novel algorithms to detect anomalies in network traffic

NA 8.1 A

03/22/13 MarkLogic Provides solutions to the public sector and Global 1000

companies around the world

Sequoia Capital; Northgate Capital

Group; Tenaya Capital

25.7 NA

03/22/13 ClearFit Provides software solutions to hire employees for various

businesses

GrandBanks Capital; Relay Ventures 7.0 A

03/21/13 Concurrent Develops enterprise software solutions Rembrandt Venture Partners; True

Ventures

4.0 NA

03/20/13 BA-Insight Provides integrated search technologies and optimization

software for SharePoint and FAST Search to organizations

in the United States and internationally

Osage Partners; Milestone Venture

Partners; Paladin Capital Group;

Originate Ventures

4.5 NA

03/20/13 Giant Thinkwell Develops presentation software Madrona Venture Group; Trilogy Equity

Partners; Founder's Co-op

3.3 A

03/18/13 VendAsta

Technologies

Provides software solutions and development services BDC Venture Capital; Vanedge Capital 8.3 B

03/14/13 BriefCam Develops and provides systems for the rapid review,

analysis and indexing of surveillance camera feeds

Motorola Solutions Venture Capital 6.5 C

03/13/13 Pyramid Analytics Offers business intelligence (BI) applications for various

business users

Sequoia Capital 11.5 A

03/13/13 VibeSec Provides solutions for enterprise unified communications

(UC) security and fraud prevention

Proseed Venture Capital Fund; Vertex

Venture Capital

4.0 NA

03/13/13 Crushpath Provides Crushpath, a platform solution to assist

salespeople in managing deals

Charles River Ventures; The

Social+Capital Partnership

6.0 A

50 Summer 2013

Siemer SaaS Report



Amount


03/12/13 ARI Network Services Engages in creating, marketing and supporting technology-

enabled solutions that help servicing and sales of goods

Wynnefield Capital $4.5 NA

03/12/13 Park City Group SaaS provider that brings unique visibility to the consumer

goods supply chain, delivering actionable information

NA 4.3 NA

03/11/13 Endgame Systems Designs and develops security solutions focusing on

cyberspace

Bessemer Venture Partners; Columbia

Capital; Kleiner, Perkins, Caufield &

Byers; Paladin Capital Group

27.5 B

03/08/13 Spanning Cloud Apps Provides a business-class software tool to manage and

protect information in cloud applications

Foundry Group 6.0 B

03/08/13 Silver Spring Networks Networking platform and solutions that enable utilities to

transform power grid infrastructure into the smart grid

NA 12.0 D

03/08/13 PHD Virtual

Technologies

Provides virtual backup software solutions for data

protection in virtual IT environments

Insight Venture Partners; Citrix Systems;

Wellington Financial

4.0 C

03/07/13 Metaps Monetization software solutions for Android applications Fidelity Investments Japan 10.7 NA

03/06/13 BINA Technologies Provides computing platforms and analytics tools for the

informatics market

Sierra Ventures 8.0 B

03/05/13 Vasona Networks Develops software that improves mobile carrier

infrastructure efficiency

Bessemer Venture Partners; Vodafone

Ventures; New Venture Partners

12.0 B

03/05/13 Famous Industries Enables creation of 2D and 3D gesture based interfaces

and deployment to any mobile or desktop device

Javelin Venture Partners 4.0 NA

03/05/13 MapR Technologies Develops enterprise software for Hadoop data-analytics

platform

Mayfield Fund; New Enterprise

Associates; Redpoint Ventures;

Lightspeed Ventures

32.0 C

02/28/13 Pneuron Distributes existing applications, creates hybrid products,

creates a business/IT framework and integrates functions

Safeguard Scientifics; Osage Partners 6.0 B

02/28/13 Nexenta Systems Provides open source enterprise class storage software

solutions

Menlo; Sierra; Presidio STX; TransLink;

Javelin; UMC Capital; The Four Rivers

Group; WestSummit Capital

24.0 D

51 Summer 2013

Siemer SaaS Report



Amount


02/26/13 Click Security Real-time security analytics for enterprises, higher

education systems, critical infrastructure and government

agencies

Sequoia Capital; Lightspeed Venture

Partners; Citi Ventures

$17.7 B

02/25/13 Altobridge Develops mobile communications over satellite for

aeronautical and maritime industries in Ireland

International Finance; Intel Capital 7.8 NA

02/25/13 AirWatch Mobile security and enterprise mobility management

solutions

Accel Management; Insight Venture

Partners

225.0 A

02/22/13 Wireless Glue

Networks

Software and hardware solutions that capture and deliver

energy data in real-time

Hosiden; Clean Pacific; Innovation

Network Corporation of Japan; Takaoka

Toko

4.5 B

02/20/13 Playnomics Provides player exchange, prospecting and retargeting

solutions for online game publishers

FirstMark Capital; X/Seed Capital

Management; Vanedge Capital

5.0 B

02/19/13 ActiFio Provides storage solutions for managing copies of

production data for enterprise IT organizations and

managed and cloud service providers

Advanced Technology; Greylock; North

Bridge; Technology Crossover;

Andreessen Horowitz

50.0 D

02/19/13 TopHatMonocle A web and mobile-based classroom response system that

engages students and provides professors with the real-

time feedback on student understanding

iNovia Capital 6.2 NA

02/15/13 TerraGo Technologies Geospatial location software and maps to produce,

access, update and share information and applications

RedShift Ventures; CNF Investments;

Observatory Capital Management

5.8 B

02/14/13 Cylance Security software solutions for infrastructure applications Khosla Ventures; Fairhaven Capital 15.0 A

02/13/13 XOS Digital Digital asset management solutions, facility design and

integration services and digital coaching technologies for

collegiate and professional sports organizations in the US

NA 7.3 NA

02/13/13 Infinio Systems Develops software solutions to address bottlenecks in

virtual environments/storage performance

Bessemer Venture Partners; Highland

Capital Partners

10.0 A

02/12/13 Nok Nok Labs Develops products and services for online security and

authentication

Onset Ventures; DCM 15.0 A

02/12/13 Ziften Technologies Develops software for desktop administration in

enterprises worldwide

Fayez Sarofim & Co. 5.0 NA

52 Summer 2013

Siemer SaaS Report



Amount


02/12/13 Spring Mobile

Solutions

Designs, develops and delivers mobility solutions for

enterprise customers in the US and internationally

NA $9.0 NA

02/08/13 Illumio Offers cloud security Internet services in California Andreessen Horowitz; Juniper Networks 8.0 A

02/08/13 VMS Holdings Develops a mobile application for sharing videos NA 11.4 NA

02/08/13 Living Naturally Develops and markets transactional software products for

automating business processes

NA 11.0 NA

02/05/13 MediaShift Provides digital advertising technology services in the

United States

NA 8.5 NA

02/05/13 CJ Educations Develops digital learning content for children CJ O Shopping 15.6 NA

02/05/13 Cedexis Develops Internet performance control and monitoring

solutions

NA 3.4 A

02/05/13 OOO "Integrator IT" Develops and designs prepackaged software, operates as

an Internet service provider and engages in the adaptation

and implementation of information systems

Boulevard Ring 5.0 NA

01/31/13 Ecorithm Develops various algorithms and proprietary software to

diagnose and optimize energy use/waste in buildings and

complexes

NA 3.0 NA

01/31/13 CounterTack Provides an in-progress attack intelligence and response

solution for enterprise and government organizations

NA 5.0 NA

01/30/13 NewVoiceMedia Develops and delivers cloud contact centre solutions for

customers in the United Kingdom and internationally

Highland Capital Partners; MMC

VENTURES; Eden Ventures; Notion

Capital Partners

20.0 B

01/30/13 DB Networks Develops database security technology to protect

confidential data from falling into the hands of external

hackers

Khosla Ventures 4.5 B

01/28/13 Coach Alba Operates as a behavioral change company that builds

Web and mobile technologies

NA 3.0 NA

53 Summer 2013

Siemer SaaS Report



Amount


01/25/13 Etherstack Develops software for use in transceivers NA $3.1 NA

01/24/13 CallMiner Enterprise speech analytics solutions for global

organizations

NA 12.1 NA

01/24/13 Semetric Provides online analytics solutions to the music industry Pentech Ventures; Imperial Innovations 4.8 NA

01/24/13 AppDynamics Provides application performance management for modern

application architectures in the cloud and data centers

Greylock Partners; Institutional Venture

Partners; Kleiner, Perkins, Caufield &

Byers; Lightspeed Venture Partners

50.0 D

01/23/13 Puppet Labs Information technology automation software for system

administrators

Vmware 30.0 D

01/23/13 Apperian Develops cloud based mobile application management

solutions for developers and enterprise IT professionals

Intel Capital 4.6 NA

01/23/13 eleni Builds commodity exchange for frontier markets International Finance Corporation;

Morgan Stanley Dean Witter Equity

Funding ; 8 Miles

5.0 NA

01/22/13 Cellrox Provides Bring Your Own Device mobile multi-persona

solutions for smart mobile devices that enable individuals

and personas to co-exist seamlessly on a single device

Columbia Technology Ventures; Runa

Capital; Previz Ventures

4.7 A

01/18/13 Enroute Systems Supply chain management and SaaS+ solutions NA 3.0 NA

01/17/13 Parallels Virtualization and automation software that optimizes

computing across hardware, operating system and

virtualization platforms

Cisco Systems 5.0 NA

01/17/13 Intigua Virtualization and cloud computing solutions for monitoring

and managing large-scale infrastructure environments

Bessemer Venture Partners; Cedar Fund 8.6 A

01/17/13 Smarter Grid

Solutions

Provides smart grid control systems and power systems

consultancy services for power companies in the United

Kingdom

Scottish Equity Partners; The Scottish

Investment Bank; Strathclyde University

4.8 NA

01/16/13 Curalate Develops marketing tools for the visual Web market New Enterprise Associates; First Round

Capital; MentorTech Ventures

3.0 A

54 Summer 2013

Siemer SaaS Report



Amount


01/16/13 vArmour Networks Provides software-defined security solutions for virtualized

data centers for service provider, enterprise and

government cloud operators in the United States and

internationally

Highland Capital Partners $6.0 A

01/15/13 Beijing Baiyitong

Technology

Develops SaaS based softwares and provides information

technology services

Beijing Kaisheng Guanhua Investment 4.8 NA

01/10/13 ScaleArc Provides database infrastructure software Accel Management Co ; Trinity Ventures;

Nexus Venture Partners

12.3 C

01/07/13 Intelligent Business

Entertainment

Develops compliance and regulatory training games and

applications for mobile platforms

Rho Capital Partners; New York City

Investment Fund Manager; Contour

Venture Partners

7.1 A

01/06/13 China National

Software & Service

Provides information technology (IT) solutions and services

in the People’s Republic of China and internationally

China Electronics 104.3 NA

01/04/13 Zonoff Provides software and Web services that deliver home

automation, energy management and remote access

services

Grotech Ventures; Valhalla Partners 3.8 NA

55 Summer 2013

Siemer SaaS Report

Select Precedent SaaS Transactions


(figures in millions of $USD) EV / LTM

Date Announced Target Acquirer Implied EV Revenue EBITDA

6/17/2013 Panopticon Software Datawatch $38.8 7.8x NA

6/17/2013 prairieFyre Software Mitel Networks 20.0 NA NA

6/17/2013 Veramark Technologies Hubspoke Holdings 11.7 0.7x 11.6x

6/14/2013 Morning Star Software Technology Anhui USTC iFLYTEK 8.2 0.8x NA

6/11/2013 Veritape Eckoh 16.5 13.8x NA

6/7/2013 Drive Consultoria e Informatica Senior Solution Consultoria em Informática 7.1 1.0x NA

6/7/2013 MAP Integration Technologies Proprietary Georigin 7.4 NA NA

6/5/2013 ST Electronics-PCI Duilong Jiadu Technology 9.4 NA NA

6/4/2013 ISS Group P2 Energy Solutions 34.9 1.8x 26.6x

6/3/2013 Indigo Retail Technology HTEC 6.0 1.8x 9.0x

5/31/2013 Poynt Sprylogics International 2.6 NA NA

5/29/2013 Apriso Dassault Systemes 205.0 NA NA

5/29/2013 JouleX Cisco Systems 107.0 NA NA

5/27/2013 Heiler Software Informatica Deutschland 70.9 2.5x NM

5/24/2013 STAR-APIC 1Spatial 7.7 0.7x NM

5/21/2013 N-able Technologies International SolarWinds Worldwide 120.0 NA NA

5/20/2013 Websense Vista Equity Partners 971.1 2.7x 17.9x

5/20/2013 Veracity E.M.T. Computarized 3.5 NA NA

5/15/2013 Wagemeyer Eleco Software 0.1 NA NA

5/8/2013 Civica OMERS Private Equity 607.8 1.9x 10.3x

5/8/2013 Market Leader Trulia 300.7 6.3x NM

5/8/2013 Epic Data International Sylogist 7.4 1.5x NM

5/7/2013 primion Technology Azkoyen 43.8 0.7x 7.9x

56 Summer 2013

Siemer SaaS Report




5/6/2013 Stonesoft McAfee $385.9 7.0x NM

5/6/2013 BMC Software Insight; GIC; Bain; Golden Gate 6,866.4 3.1x 11.2x

5/1/2013 Eque2 ISIS Equity Partners; Baronsmead VCT 3.9 NA NA

5/1/2013 Ebix Rennes; Robin Raina; Exchange Parent 811.6 3.9x 9.3x

4/30/2013 Sentilla SingTel Innov8 37.9 NA NA

4/29/2013 Arkoon Network Security Cassidian 17.0 1.0x 6.0x

4/24/2013 Idhasoft Prism Informatics 71.0 NA NA

4/23/2013 Mobio Identity Systems LX Ventures 0.6 NA NA

4/22/2013 BasWare Computer Program Unit 2.0 2.4x NA

4/18/2013 Front Applications Itbook 0.1 0.4x NA

4/16/2013 Logo Yazilim Sanayi ve Ticaret Mediterra Private Equity 73.9 2.9x NA

4/11/2013 Advent Software TPG Advisors VI 1,204.2 3.3x 14.6x

4/10/2013 Software Imaging Hancom 0.9 NA NA

4/9/2013 QS Quarterhouse Software PNI Digital Media 1.0 2.3x NA

4/5/2013 1st Holdings ORIX 302.7 2.2x 6.0x

4/1/2013 Infoglide Software Fair Isaac 7.0 NA NA

3/28/2013 NEC HCL System Technologies NEC 24.5 NA NA

3/11/2013 Direção Processamento de Dados Linx Sistemas E Consultoria 13.5 1.6x NA

3/8/2013 Arieso JDS Uniphase 85.0 NA NA

3/8/2013 Computer Software Holdings Advanced Computer Software Group 164.2 1.8x 8.3x

3/1/2013 altosoft Kofax 13.5 4.0x NA

3/1/2013 Utilisoft Hansen 3.6 1.0x NA

3/1/2013 MakeSense Technologies Info Edge 1.5 NA NA


57 Summer 2013

Siemer SaaS Report





2/27/2013 Mind Technologies VOIS $0.1 NA NA

2/27/2013 Kestrel Technologies Technology Funding 1.5 NA NA

2/22/2013 Creo Amano 18.2 0.2x 3.3x

2/12/2013 OTTilus Pilat Media Global 1.9 NA NA

2/12/2013 PlanSwift Textura 7.5 NA NA

2/5/2013 QPR CIS QPR Software 0.5 NA NA

2/4/2013 Webscreen Systems Juniper Networks 9.9 7.0x 21.0x

1/31/2013 Summit Software Corporate Resource Services 35.9 NA NA

1/31/2013 Computer System Laboratory Outsourcing 13.1 0.7x NA

1/31/2013 Fringe81 Fringe81 Holdings 3.2 0.5x NA

1/28/2013 Angoss Software Peterson Partners 7.9 1.1x NM

1/24/2013 Stratix Corporation ServicePower Technologies 0.6 NA NA

1/24/2013 TBH Guernsey Ladbrokes 51.9 NA NA

1/24/2013 Global Betting Exchange Ladbrokes 41.9 NA NA

1/24/2013 W&D Participações Totvs Brasília Software 46.8 NA NA

1/16/2013 Cogility Software Drumright Group 7.0 NA NA

1/15/2013 Assetic M. H. Carnegie & Co. 19.2 NA NA

1/15/2013 Panasonic AVC Multimedia Software Tempstaff 11.8 0.4x NA

1/9/2013 Klug Krones 25.2 NA NA

1/2/2013 Nio The IVR Controls 0.1 NA NA

12/31/2012 CEBOS QAD 5.0 NA NA

12/28/2012 Storycode TigerLogic 7.7 NA NA

58 Summer 2013

Siemer SaaS Report




12/27/2012 NewBay Software Synchronoss Technologies $55.5 0.0x NA

12/27/2012 Hansoft SoftForum 413.3 7.7x NA

12/24/2012 Progress Software Micro Focus International 15.0 0.5x NA

12/21/2012 Softlog Systems Recovery Australia Solutions 0.2 NA NA

12/21/2012 Trans Infotech Wirecard 33.6 NA NA

12/20/2012 Eloqua Oracle 871.0 9.1x NM

12/20/2012 ManageIQ Red Hat 105.0 NA NA

12/17/2012 Compuware Elliott Management 2,273.7 2.4x 15.1x

12/17/2012 OneMove Technologies Plantro; Seastone Investments 5.0 2.2x NM

12/17/2012 Educational Computer Systems Heartland Campus Solutions 37.6 NA NA

12/17/2012 Pyramid Control Systems Matthews International 28.2 1.6x NA

12/17/2012 Inzi Soft MobileLeader 0.0 NA NA

12/14/2012 Shanghai Huateng Software Systems Chinasoft International 59.6 NA NA

12/14/2012 Connect Holdings S and P 25.5 1.2x NM

12/14/2012 RMG Enterprise Solutions SCG Financial Acquisition 45.0 NA NA

12/13/2012 Rhaon Entertainment AfreecaTV 30.9 NA NA

12/12/2012 NC West Holdings Ncsoft 46.5 NA NA

12/7/2012 New Dawn Technologies Daily Journal 14.0 NA NA

12/5/2012 Apperience M Dream Inworld 122.8 10.5x NA

12/5/2012 Zenprise Citrix Systems 324.2 NA NA

11/30/2012 ANT Espial 0.9 0.1x NM

11/30/2012 CCC Information Services Group Leonard Green & Partners 550.0 NA NA

11/29/2012 Cariden Technologies Cisco Systems 141.0 NA NA


59 Summer 2013

Siemer SaaS Report





11/28/2012 Retalix NCR $613.5 2.3x 25.5x

11/27/2012 SOAR SYSTEM RealVision 1.6 0.5x NA

11/26/2012 CR Software Fair Isaac 28.8 NA NA

11/23/2012 Miracom Samsung 11.6 0.6x 4.6x

11/21/2012 Versant Actian 16.4 1.1x NM

11/20/2012 GDC Technology Huayi Brothers Media 211.3 NA NA

11/16/2012 AltoStor WANdisco 5.1 NM NA

11/16/2012 Astoria Innovations Beijing Enterprises Group 11.8 NA NA

11/15/2012 Cloupia Cisco Systems 125.0 NA NA

11/14/2012 Energistic Formosa Prosonic Industries 0.9 NA NA

11/14/2012 Exentra Transport Solutions The Descartes Systems Group 17.0 NA NA

11/13/2012 Verivue Akamai Technologies 32.1 NA NA

11/12/2012 Systems Alternatives International Brady 10.0 1.2x NA

11/12/2012 Albat + Wirsam Software Friedman 24.4 NA NA

11/9/2012 Qanda Technology Fastvue 1.1 NA NA

11/8/2012 LMS International Siemens Product Lifecycle Software 915.1 NA NA

11/8/2012 Vandasoft Technology Holdings PCCW Solutions 1.0 NA NA

11/8/2012 PT. AZEC PT Erajaya Swasembada 2.8 NA NA

11/7/2012Beijing BII-ERG Transportation

Technology

China City Railway Transportation

Technology Holdings33.1 NA NA

11/7/2012 Beijing Hua An Tian Cheng Technology Chongqing Zongshen Power Machinery 16.3 NA NA

11/7/2012 Tierdata Informatica 10.2 NA NA

11/5/2012 Vyatta Brocade Communications Systems 43.6 NA NA

11/5/2012 LiveTime Software Absolute Software 14.1 NA NA

60 Summer 2013

Siemer SaaS Report




11/1/2012 JDA Software Group RedPrairie $1,826.6 2.8x 10.9x

11/1/2012 Visionutveckling Enghouse Systems 10.9 NA NA

11/1/2012 RMS Solutions Sylogist 0.3 NA NA

10/31/2012 Beta Systems Software Deutsche Balaton 4.2 0.1x 1.4x

10/31/2012 Varitronics Renaissance Equity Partners 8.4 NA NA

10/29/2012 I Education FrogTrade 3.1 NA NA

10/29/2012 OPNET Technologies Riverbed Technology 867.9 4.8x 26.6x

10/24/2012 DaeSung Information System Daesung Industrial 0.1 NA NA

10/23/2012 Aegis Analytical Accelrys 30.0 NA NA

10/19/2012 FMx McLaren Software 9.0 2.1x NA

10/18/2012 Zmanda Carbonite 13.4 NA NA

10/18/2012 Aurea Software ESW Capital 60.5 NA NA

10/17/2012 Motex Kyocera Communication Systems 168.4 4.5x NA

10/12/2012 Vector Soft Strategy 0.3 NA NA

10/10/2012 Metaskil Group Quindell Portfolio 7.4 1.5x NA

10/9/2012 Insider Technologies YFM Equity Partners 4.8 1.1x NA

10/9/2012 INUS Technology 3D Systems 35.0 NA NA

10/4/2012 Qontext Autodesk 26.0 NA NA

10/4/2012 Sininen Meteoriitti Fujitsu Finland 26.0 NA NA

10/4/2012 FAService TRUMPF 12.8 1.1x NA

10/3/2012 Progress Software Rocket Software 31.9 2.0x NA

10/2/2012 ClickMotive DealerTrack 56.6 NA NA

10/2/2012 Zephyr Associates Informa Investment Solutions 62.0 NA NA


61 Summer 2013

Siemer SaaS Report





10/1/2012 Ongame Network Amaya Gaming Group $32.4 NA NA

9/28/2012 Spend Radar SciQuest 17.6 NA NA

9/25/2012 Serengeti Systems Netcall 4.7 1.8x NA

9/24/2012 Draig Technology Utilisoft 1.1 1.6x NA

9/24/2012 Marathon Technologies Stratus Technologies 2.2 NA NA

9/24/2012 Réalisations Microélectroniques Poincaré Gestion 22.8 0.6x NA

9/21/2012 Cenize Informática IOB Folhamatic Group 6.3 NA NA

9/21/2012 Empresa Brasileira de Sistemas IOB Folhamatic Group 17.2 NA NA

9/21/2012 Conscious Object Development GHL 0.3 NA NA

9/18/2012 Image Recognition Integrated Systems Canon Europa 81.8 0.6x 9.7x

9/17/2012 Lapis Software Associates Spectra Systems 0.8 2.1x NA

9/17/2012 Evolution Robotics iRobot 0.0 NA NA

9/17/2012 Syntevo WANdisco 1.0 NA NA

9/15/2012 Sigma Danismanlik Asseco 9.2 1.7x NA

9/13/2012 Sensage The KEYW Holding 85.7 7.1x NM

9/13/2012 Solarsoft Business Systems Epicor Software 155.0 1.7x NA

9/13/2012 Distra ACI Worldwide 48.8 NA NA

9/6/2012 Mingle Suite Application Myriad Interactive Media 0.3 0.0x NA

9/5/2012 Mobile Eco Ubiquoss 2.6 6.0x NA

9/5/2012 American Driving Records SAMBA Holdings 11.0 NA NA

9/4/2012 Reverse Mortgage Solutions Walter Investment Management 0.0 NA NA

9/3/2012 Midas Data Vitec Software Group 10.0 NA NA

8/27/2012 Deltek Thoma Bravo 1,028.8 3.0x 18.2x

62 Summer 2013

Siemer SaaS Report





8/27/2012 TMW Systems Trimble Navigation $334.0 3.5x NA

8/27/2012 Kenexa IBM 1,308.7 3.9x NM

8/27/2012 Pipfrog Soprano 0.3 NA NA

8/24/2012 Return To Scene SeaEnergy 16.0 5.1x NA

8/24/2012 Shandong Inspur Jiantong Information Shandong Inspur Software 0.0 NA NA

8/23/2012 K-log Stands Up Works Proprietary 1.8 NA NA

8/20/2012 Rig Support Services UMED Holdings 0.0 NA NA

8/17/2012 KSS Fuels INVESCO Asset Management 28.2 NA NA

8/15/2012 Accelerated Payment Technologies Global Payments 413.0 NA NA

8/14/2012 Infotech Enterprises Gagil FDI 261.3 0.9x 4.6x

8/13/2012 UC4 Software EQT Partners 282.5 3.5x NA

8/13/2012 Pervasive Software Actian 117.3 2.3x 25.6x

8/13/2012 Comverse Technology Verint Systems 1,471.9 0.9x 7.4x

8/11/2012 Hunan Datang Energy Technology Hunan Datang Xianyi Technology 4.5 NA NA

8/10/2012 VanceInfo Technologies Pactera Technology International 360.6 1.1x 15.8x

8/9/2012 Qt Development Frameworks Digia 5.2 NA NA

8/9/2012 Bay Bridge Decision Technologies Interactive Intelligence Group 12.9 NA NA

8/9/2012 Beacon Information Technology Bsp 33.1 NA NA

8/8/2012 Servigistics PTC 220.0 2.8x NA

8/7/2012 nQueue Billback Reckon 5.0 NA NA

8/7/2012 Agile Advantage Rally Software Development 0.4 NA NA

8/7/2012 Campus Labs Higher One Holdings 53.8 6.5x NA

8/7/2012 BigWorld Wargaming Public Company 45.0 NA NA

63 Summer 2013

Siemer SaaS Report




8/3/2012 Springsoft Synopsys Taiwan $290.8 3.6x 10.2x

8/3/2012 RealPractice ReachLocal 2.9 NA NA

8/2/2012 Starhome Fortissimo Capital 81.3 NA NA

8/2/2012 AMADEUS MARKETING CSA Amadeus IT Group 197.1 NA NA

8/1/2012 Frisk Software International Commtouch Software 4.1 NA NA

8/1/2012 Visualization Sciences Group FEI 55.1 2.4x NA

7/30/2012 20-20 Technologies Vector Capital 71.8 1.0x 9.2x

7/26/2012 Explorer Paltek 3.6 NA NA

7/25/2012 MacsDesign Studio SolarWinds 20.0 NA NA

7/24/2012 Upside Software SciQuest 28.0 NA NA

7/23/2012 Nicira Networks Vmware 1,263.0 NA NA

7/23/2012 DLD Group International Dianliandian ShopsNetwork 0.3 NA NA

7/19/2012 Accanto Systems NetScout Systems 15.0 NA NA

7/19/2012 Tri Eye Design Saguaro Oil and Gas Recovery 9.7 NA NA

7/19/2012 Maple Lake TXT e-solutions 18.2 2.0x 7.8x

7/17/2012 TRA TiVo 20.0 NA NA

7/17/2012 Delta Software Access UK 8.4 NA NA

7/16/2012 Guangdong New Pivot ZTE 3.4 NA NA

7/12/2012 Cassis International Morpho 5.0 NA NA

7/12/2012 Wavecom Solutions Hawaiian Telcom 8.3 NA NA

7/12/2012 Ascade CSG Systems International 19.0 1.2x 16.0x

7/11/2012 Innovative Dealer Technologies Vauto 9.5 NA NA

7/11/2012 Invention Machine HIS 40.0 NA NA


64 Summer 2013

Siemer SaaS Report





7/11/2012 GMC Software Neopost $61.2 1.4x NA

7/6/2012 microDATA GIS TeleCommunication Systems 37.0 NA NA

7/3/2012 Lindenhouse Software Reckon 22.6 NA NA

7/2/2012 Coin Software Rubik Financial 28.3 NA NA

7/2/2012 M-Audio and AIR Software Numark Industries 13.9 NA NA

7/2/2012 Lateral Data Xerox Litigation Services 30.0 NA NA

7/2/2012 Sigrity Cadence Design Systems 78.3 NA NA

7/2/2012 Avid Technology Corel 3.6 NA NA

7/2/2012 Lunch Byte Systems Heartland Payment Systems 26.0 NA NA

6/30/2012 Nuri Solution Samsung 7.0 0.4x NA

6/29/2012 FrogTrade YTL Power Investments 20.6 NA NA

6/28/2012 Cognovo u-blox Holding 16.5 NA NA

6/27/2012 FuseSource Red Hat 21.3 NA NA

6/26/2012 ProwebCE Iris Capital; Edmond de Rothschild 43.1 0.7x 13.2x

6/26/2012 Outreach Suite AccuFund 1.0 NA NA

6/25/2012 Alegeus Technologies Lightyear Capital 335.0 2.8x NA

6/25/2012 Quest Software Dell 2,432.0 2.7x 13.7x

6/25/2012 Keysite e-Trial 0.9 0.6x NA

6/20/2012 IOB Folhamatic Group Sage Group 246.8 3.7x 23.3x

6/20/2012 Wavelink LANDesk Software 82.0 NA NA

6/20/2012 NextOp Software Atrenta 5.0 NA NA

6/19/2012 Infochem Computer Services KBC Advanced Technologies 15.1 8.0x NA

6/19/2012 GE Medical Systems Ascom 28.0 1.4x NA

6/18/2012 Metrologic Group The Carlyle Group 136.4 3.9x 7.8x

65 Summer 2013

Siemer SaaS Report

Select Precedent SaaS Transactions (figures in millions of $USD) EV / LTM


6/15/2012 Yammer Microsoft $1,200.0 NA NA

5/22/2012 Ariba SAP America 4,390.1 8.5x NM

Overall Transaction Statistics:

Mean $165.8 2.6x 12.6x

Median $17.1 1.8x 10.6x

Contact Information

Hong Kong Los Angeles Singapore

Siemer & Associates, LLC Member FINRA/SIPC www.siemer.com

1333 2nd Street, Suite 600

Santa Monica, CA 90401

Phone: (310) 861-2100

Fax: (310) 861-2125

www.siemer.com