software sector summary report - gca altium...2) financings include software venture and private...

SOFTWARESECTOR REPORT

February 2018

22

Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4)

Company Amount ($MM) Target Acquirer EV ($MM)

$125 $3,903

$110 $2,426

$100 $1,917

$75 $1,240

$57 $1,125

$40 $713

$35 $614

$30 $459

Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6)

` Financing Activity by Quarter

$8.0 BillionYTD 2018 Financing Volume (1)(2)

94YTD 2018 Financing Transactions (1)(2)

$8.6 BillionYTD 2018 M&A Volume (3)

17YTD 2018 M&A Transactions (3)

12%

36%

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

SPX IGV

111127

94123

156 160 159 161

94

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18TD

$9$10

$5 $6

$14$12 $11 $12

$8

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18TD

$6

$49$41

$15$11

$5$8 $13

$9

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18TD

14

2924

2925

21 20 2217

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18TD

( )

3.9x

3.1x

4.2x

3.6x4.0x

4.6x

3.3x

4.6x

3.9x

5.3x

4.3x

3.7x

4.9x

3.7x

2.7x2.2x

2.9x 2.9x

4.5x4.1x

2.8x

0

1

2

3

4

5

6

2011 2012 2013 2014 2015 2016 2017

All Buyers Strategic Buyers PE Buyers

DEAL DASHBOARD

Notes:Sources: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 3/1/2018.1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Software M&A transactions reflect select transactions in 2017 and 2018 YTD. M&A metrics are based on closed and announced transactions.5) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM.

Software

Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3)

$Bn $Bn

54%

40%

(66%)

(8%)

33

James OrozcoManaging [email protected]

Paul DiNardoManaging Director

[email protected]

GCA OVERVIEW

US Team

Steve FletcherManaging DirectorHead of Software

[email protected]

The GCA Software Team

Clark CallanderManaging Director

Head of Investment [email protected]

Todd CarterCo-President & [email protected]

Executive Leadership Select Europe Team

**Sascha PfeifferCo-Head of European Technology & Media

[email protected]

*Adrian ReedManaging Director

[email protected]

*Stephen GeorgiadisManaging Director

[email protected]

**Raiko SteltenDirector

[email protected]

Select Asia Team

***Ryuichi KanemakiManaging [email protected]

Tomohiko KubotaRepresentative Director at

GCA [email protected]

***Akikazu IdaCo-Head of Asian

Technology & [email protected]

Glen KrugerDirector

[email protected]

Gautam GargDirector

[email protected]

Daniel AvrutskyManaging Director

[email protected]

Chris GoughManaging Director

Real Estate [email protected]

Sean MinnihanManaging Director

FinTechFinancial Software

[email protected]

Derek BellManaging DirectorBusiness [email protected]

JT HermanManaging Director

Industrial [email protected]

Arthur KirschManaging Director

Healthcare [email protected]

John LambrosManaging Director

Head of Digital [email protected]

Alex VitaleManaging Director

Auto [email protected]

*Phil AdamsCEO of GCA Altium

[email protected]

**Tobias SchultheissManaging Director

[email protected]

Sameer JindalManaging Director

Head of Indian [email protected]

*Adrian Reed, Phil Adams and Stephen Georgiadis are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation.**Raiko Stelten, Sascha Pfeiffer and Tobias Schultheiss are Managing Directors at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation.***Akikazu Ida and Ryuichi Kanemaki are Managing Directors at GCA Corporation.

Josh WepmanManaging Director

Software & Digital Media

[email protected]

44

Deep Software Sector Expertise

GCA OVERVIEW

Notes:The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Corporation and GCA Altium, have advised on. Generally, GCA Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At times, multiple GCA entities may be retained to advise on the same transaction.

We Advised the Seller

Acquired by


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Fairness Opinion to Buddy Media

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We Advised the BuyerWe Advised the Seller

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We Advised the SellerWe Advised the Seller

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Convertible NoteOffering

Financial Advisor


We Advised the SellerWe Advised the Seller

Acquired by

We Advised the Buyer

Acquisition ofAcquisition of

We Advised the BuyerFinancial Advisor

Investment fromStrategic Advisory Services

Financial Advisor

Acquisition of

We Advised the Buyer We Advised the Seller

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We Advised the Seller We Advised the Seller

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We Advised the Seller We Advised the BuyerWe Advised the Seller

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Financial Advisor

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We Advised the SellerFinancial Advisor

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Acquisition of

We Advised the Buyer We Advised the Seller



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55

Index Performance

RECENT STOCK PERFORMANCE

Last 12 Months Last 3 Years

Notes:Sources: Capital IQ. Market Data as of 3/1/2018.Platform: ADBE, IBM, MSFT, ORCL, SAP.Security: ABT, CHKP, CYBR, FEYE, FSC1V, FTNT, IMPV, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI.Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW.SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SEND, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN.BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT.Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV.

Sector 3 Months 1 Year 3 Years

Platform 4.8% 24.6% 67.4%

Security 8.7% 29.8% 4.0%

Infrastructure 5.8% 28.2% 20.8%

SaaS / On Demand 2.0% 50.5% 82.5%

BI & Analytics 7.9% 39.7% 49.6%

Vertical 18.7% 24.7% 19.5%

(60%)

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18

66

Valuation and Operational Metrics

TRADING COMPARABLES

Notes:Sources: Capital IQ. Market Data as of 3/1/2018.Figures represent mean values of respective comp groups.Platform: ADBE, IBM, MSFT, ORCL, SAP.Security: ABT, CHKP, CYBR, FEYE, FSC1V, FTNT, IMPV, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI.Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW.SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SEND, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN.BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT.Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV.

EV / 2018E Revenue EV / 2018E EBITDA

2018E / 2017A Revenue Growth 2018E EBITDA Margin

6.7x

5.7x 5.7x 5.2x

4.5x4.2x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

7.0x

SaaS Infrastructure Platform Vertical Security BI & Analytics

Median: 5.4x

36.1x

29.4x

26.4x 23.7x

20.5x

14.2x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

SaaS BI & Analytics Security Infrastructure Vertical Platform

Median: 25.0x

22.1%

18.9% 17.2% 14.8% 13.9%

9.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

SaaS BI & Analytics Infrastructure Vertical Security Platform

Median: 16.0%

38.1%

26.1% 23.7% 22.8%

18.2%

13.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Platform Vertical Infrastructure Security SaaS BI & Analytics

Median: 23.3%

77

Software Trading Statistics

PUBLIC COMPANY VALUATIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Market Data as of 3/1/2018. Negative margins considered NM. Multiples <0 and >100 considered NM.

($MM, Except Per Share Data)

Stock Trading Statistics Operating Metrics

Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin

3/1/2018 Value Debt Value CY 17A CY 18E CY 19E CY 17A CY 18E CY 19E CY 17A CY 18E CY 19E 17A/16A 18E/17A 19E/18E CY 17A CY 18E CY 19E

Platform

Microsoft Corporation $92.85 $714,926 ($45,347) $669,579 7.0x 6.0x 5.6x 20.1x 14.8x 13.0x 75.5x 24.4x 22.3x 7.6% 16.7% 8.0% 34.8% 40.6% 42.8%

Oracle Corporation $49.71 205,780 (10,904) 194,876 5.0 4.8 4.6 12.9 10.3 9.7 21.4 16.3 15.0 4.5% 4.2% 4.6% 38.9% 46.6% 47.1%

International Business Machines Corporation $153.81 141,685 34,276 175,961 2.2 2.2 2.2 10.6 9.0 8.9 25.0 11.1 10.8 (1.0%) 1.2% 0.4% 21.0% 24.3% 24.6%

SAP SE $101.78 121,465 2,703 124,168 4.4 4.2 3.9 17.2 12.2 11.2 25.3 19.1 17.3 21.0% 5.3% 7.2% 25.6% 34.3% 34.9%

Adobe Systems Incorporated $206.03 101,280 (3,937) 97,343 13.3 11.1 9.5 39.0 24.8 20.9 61.0 32.8 29.0 24.7% 20.2% 17.4% 34.2% 44.8% 45.2%

Mean 6.4x 5.7x 5.1x 20.0x 14.2x 12.7x 41.6x 20.8x 18.9x 11.4% 9.5% 7.5% 30.9% 38.1% 38.9%

Median 5.0 4.8 4.6 17.2 12.2 11.2 25.3 19.1 17.3 7.6% 5.3% 7.2% 34.2% 40.6% 42.8%

Infrastructure

VMware, Inc. $123.66 $49,931 ($7,419) $42,512 5.4x 4.9x 4.6x 19.8x 13.3x 11.9x 89.6x 22.1x 20.0x 11.7% 9.2% 7.9% 27.1% 36.8% 38.3%

ServiceNow, Inc. $159.57 27,877 (606) 27,271 14.1 10.7 8.3 NM 41.8 29.3 NM 79.8 54.0 39.0% 32.1% 28.4% 0.8% 25.5% 28.4%

Red Hat, Inc. $145.44 25,744 (954) 24,790 8.9 7.6 6.7 46.7 27.6 22.6 78.6 44.9 39.8 19.4% 16.8% 13.7% 19.1% 27.7% 29.7%

CA, Inc. $35.20 14,676 (45) 14,631 3.5 3.4 3.4 12.0 8.9 8.7 34.8 13.1 12.7 3.2% 2.9% 1.3% 29.3% 38.5% 38.9%

Splunk Inc. $93.64 13,246 (1,067) 12,179 9.6 7.8 6.1 NM 57.1 38.8 NM NM 72.9 33.8% 22.7% 27.3% NM 13.7% 15.8%

Atlassian Corporation Plc $54.19 12,585 (679) 11,906 16.1 12.2 9.6 NM 43.0 35.9 NM 99.3 69.3 39.4% 31.3% 27.1% NM 28.5% 26.9%

Citrix Systems, Inc. $90.81 12,364 380 12,744 4.5 4.4 4.3 15.7 13.5 13.0 NM 18.5 16.4 3.2% 1.9% 3.5% 28.8% 32.9% 33.0%

Micro Focus International plc $27.69 12,076 4,152 16,228 6.5 3.9 4.0 16.2 10.2 9.4 14.2 11.6 10.1 84.8% 67.2% (2.5%) 40.0% 38.0% 42.5%

F5 Networks, Inc. $146.55 9,063 (1,005) 8,059 3.8 3.7 3.6 12.7 9.6 NA 22.6 15.2 14.0 3.7% 3.3% 3.2% 30.2% 38.6% NA

LogMeIn, Inc. $117.05 6,137 (252) 5,885 5.9 5.1 4.8 22.4 13.1 11.9 60.6 21.3 19.0 194.5% 16.5% 6.8% 26.6% 39.0% 40.3%

Nutanix, Inc. $36.20 5,807 (503) 5,305 5.6 4.6 3.8 NM NM 68.9 NM NM NM 50.6% 21.3% 22.4% NM 1.8% 5.5%

Pure Storage, Inc. $21.78 4,722 (597) 4,124 4.0 3.1 2.4 NM 48.0 26.7 NM NM 61.8 40.5% 30.5% 26.5% NM 6.4% 9.1%

MuleSoft, Inc. $30.88 4,061 (204) 3,857 13.0 9.4 7.1 NM NM NM NM NM NM 57.9% 38.7% 32.2% NM NM NM

New Relic, Inc. $72.05 3,995 (233) 3,762 11.4 8.9 7.1 NM NM 56.2 NM NM NM 36.0% 28.5% 24.4% NM 8.6% 12.7%

Software Aktiengesellschaft $52.08 3,853 (98) 3,755 3.6 3.4 3.3 12.0 11.0 10.3 23.1 16.7 15.6 14.7% 4.1% 3.7% 29.5% 31.0% 32.0%

Commvault Systems, Inc. $51.90 2,333 (445) 1,887 2.7 2.5 2.2 NM 17.7 13.5 NM 37.6 29.1 7.7% 10.1% 11.0% 0.7% 14.1% 16.7%

NetScout Systems, Inc. $26.25 2,291 (80) 2,211 2.1 2.2 2.1 11.0 10.9 9.9 27.9 18.1 16.0 (5.2%) (6.1%) 2.3% 18.8% 20.1% 21.6%

Progress Software Corporation $46.21 2,144 (62) 2,082 5.2 5.2 5.1 14.9 10.8 10.8 60.0 19.8 19.0 (1.9%) 1.6% 1.3% 35.2% 47.6% 47.2%

SailPoint Technologies Holdings, Inc. $21.68 1,851 (48) 1,803 9.7 8.1 6.5 89.4 NM 68.9 NM NM NM 40.5% 19.5% 24.3% 10.8% 7.9% 9.5%

Appian Corporation $28.91 1,756 (74) 1,682 9.5 8.4 7.1 NM NM NM NM NM NM 33.0% 13.1% 19.3% NM NM NM

Altair Engineering Inc. $26.25 1,651 75 1,727 5.2 4.8 4.2 77.5 40.2 27.6 NM 74.5 48.3 5.7% 8.5% 13.5% 6.7% 11.9% 15.3%

A10 Networks, Inc. $6.26 443 (124) 319 1.4 1.3 1.2 28.6 25.3 16.1 NM NM 39.1 0.5% 4.5% 7.0% 4.8% 5.2% 7.7%

Mean 6.9x 5.7x 4.9x 29.1x 23.7x 25.8x 45.7x 35.2x 32.8x 32.4% 17.2% 13.9% 20.6% 23.7% 24.8%

Median 5.5 4.9 4.4 16.2 13.5 16.1 34.8 20.6 20.0 26.2% 14.8% 12.3% 26.6% 26.6% 26.9%

88








Security

Check Point Software Technologies Ltd. $102.58 $16,766 ($1,411) 15,355 8.3x 7.9x 7.5x 16.4x 14.6x 13.6x 21.3x 17.9x 16.4x 6.5% 5.1% 5.7% 50.6% 54.1% 54.6%

Symantec Corporation $26.51 16,477 3,055 $19,532 4.1 4.0 3.8 22.7 8.5 7.4 17.1 15.3 13.5 25.5% 2.7% 6.0% 18.1% 47.2% 51.3%

Palo Alto Networks, Inc. $173.44 15,930 (1,098) 14,832 7.5 6.1 5.2 NM 23.5 18.9 NM 39.4 32.3 26.9% 21.8% 17.5% NM 26.0% 27.5%

Splunk Inc. $93.64 13,246 (1,067) 12,179 9.6 7.8 6.1 NM 57.1 38.8 NM NM 72.9 33.8% 22.7% 27.3% NM 13.7% 15.8%

Fortinet, Inc. $49.51 8,319 (1,251) 7,068 4.7 4.1 3.7 42.2 18.3 15.0 NM 34.4 29.8 17.2% 14.1% 12.5% 11.2% 22.7% 24.6%

Trend Micro Incorporated $57.05 7,852 (1,353) 6,498 4.9 4.3 4.0 14.5 13.0 12.2 34.7 29.0 26.3 16.9% 15.6% 5.7% 33.9% 32.7% 33.0%

Proofpoint, Inc. $107.22 5,420 (134) 5,286 10.3 7.6 5.9 NM 63.4 42.8 NM NM 66.2 37.2% 34.6% 28.9% NM 12.0% 13.8%

FireEye, Inc. $16.60 3,180 (117) 3,063 4.1 3.7 3.5 NM 29.3 23.6 NM NM NM 5.2% 9.1% 7.6% NM 12.8% 14.7%

Qualys, Inc. $74.80 2,889 (288) 2,601 11.3 9.4 8.0 44.9 26.6 22.5 74.1 52.5 44.4 16.6% 20.0% 17.2% 25.1% 35.3% 35.6%

Mimecast Limited $34.94 2,020 (88) 1,932 8.0 6.4 5.4 NM 60.3 43.3 NM NM NM 40.9% 25.8% 18.8% 4.6% 10.6% 12.4%

CyberArk Software Ltd. $49.43 1,717 (299) 1,418 5.4 4.5 3.8 50.3 22.0 17.8 NM 40.6 32.3 20.8% 20.2% 17.2% 10.8% 20.5% 21.6%

Imperva, Inc. $46.95 1,623 (360) 1,263 3.9 3.4 3.0 NM 18.1 14.9 70.1 31.7 27.0 21.7% 15.2% 14.8% NM 18.8% 19.9%

Rapid7, Inc. $25.81 1,158 (91) 1,068 5.3 4.6 3.8 NM NM 91.7 NM NM NM 27.6% 16.0% 19.8% NM NM 4.2%

SecureWorks Corp. $9.35 758 (100) 658 1.4 1.3 1.2 NM NM 28.1 NM NM NM 8.4% 8.4% 10.7% NM NM 4.2%

F-Secure Oyj $4.18 655 (108) 547 2.7 2.5 2.3 26.0 25.6 16.0 50.5 63.4 31.3 21.9% 9.1% 9.1% 10.3% 9.6% 14.1%

VASCO Data Security International, Inc. $12.10 483 (158) 324 1.7 1.6 1.5 26.5 16.4 12.5 NM 33.9 23.3 0.5% 5.2% 8.2% 6.3% 9.7% 11.8%

MobileIron, Inc. $4.80 461 (93) 368 2.1 1.9 1.7 NM NM 40.5 NM NM NM 7.7% 9.4% 9.5% NM NM 4.3%

Zix Corporation $4.08 225 (33) 192 2.9 2.8 2.6 12.8 9.4 8.4 NM 12.8 11.5 9.2% 3.7% 7.3% 22.8% 29.8% 31.3%

Absolute Software Corporation $4.81 193 (33) 160 1.7 1.6 1.5 11.9 16.2 10.9 NM 61.2 30.6 4.4% 4.7% 8.8% 14.5% 10.1% 14.0%

Mean 5.3x 4.5x 3.9x 26.8x 26.4x 25.2x 44.6x 36.0x 32.7x 18.4% 13.9% 13.3% 18.9% 22.8% 21.5%

Median 4.7 4.1 3.8 24.4 20.2 17.8 42.6 34.2 30.2 17.2% 14.1% 10.7% 14.5% 19.6% 15.8%

99








SaaS

salesforce.com, inc. $119.43 $86,264 ($2,022) $84,242 8.0x 6.6x 5.6x 85.2x 29.9x 24.2x NM 58.4x 46.1x 24.9% 20.9% 19.4% 9.4% 22.2% 23.0%

ServiceNow, Inc. $159.57 27,877 (606) 27,271 14.1 10.7 8.3 NM 41.8 29.3 NM 79.8 54.0 39.0% 32.1% 28.4% 0.8% 25.5% 28.4%

Workday, Inc. $123.95 26,030 (1,776) 24,253 11.3 9.0 7.4 NM 48.6 36.0 NM NM 76.0 36.6% 25.4% 22.6% NM 18.6% 20.5%

Shopify Inc. $136.85 14,355 (943) 13,412 19.9 13.4 9.8 NM NM NM NM NM NM 72.9% 48.3% 37.2% NM 3.6% 6.5%

Veeva Systems Inc. $69.95 9,887 (762) 9,125 13.3 11.1 9.5 55.3 34.2 28.8 76.0 52.9 45.9 26.0% 19.4% 17.8% 24.1% 32.6% 32.9%

The Ultimate Software Group, Inc. $242.93 7,427 (155) 7,272 7.7 6.5 5.5 98.0 26.3 21.8 NM 44.9 37.2 20.4% 18.4% 17.8% 7.9% 24.9% 25.5%

LogMeIn, Inc. $117.05 6,137 (252) 5,885 5.9 5.1 4.8 22.4 13.1 11.9 60.6 21.3 19.0 194.5% 16.5% 6.8% 26.6% 39.0% 40.3%

Paycom Software, Inc. $98.76 5,845 (10) 5,835 13.5 10.7 8.7 64.1 26.7 21.9 87.1 40.2 32.3 31.6% 25.5% 23.4% 21.0% 40.1% 39.8%

Aspen Technology, Inc. $77.20 5,554 102 5,656 11.5 11.2 10.6 26.0 23.1 21.3 35.3 31.6 27.8 3.8% 3.2% 5.7% 44.3% 48.3% 49.6%

RingCentral, Inc. $62.60 4,925 (181) 4,744 9.5 7.5 6.1 NM 65.4 50.2 NM NM 81.9 32.1% 26.4% 22.6% NM 11.4% 12.2%

Blackbaud, Inc. $100.73 4,716 408 5,124 6.5 5.8 5.3 38.3 24.2 21.5 73.0 35.7 31.4 7.9% 11.5% 9.7% 17.0% 24.1% 24.7%

2U, Inc. $84.74 4,467 (201) 4,266 14.9 10.6 8.0 NM NM NM NM NM NM 39.3% 40.0% 32.3% NM 4.1% 5.5%

Zendesk, Inc. $42.68 4,412 (247) 4,165 9.7 7.4 5.8 NM NM 71.3 NM NM NM 38.0% 30.5% 28.1% NM 6.2% 8.1%

RealPage, Inc. $51.75 4,300 579 4,879 7.3 5.8 5.2 51.5 22.3 18.6 NM 35.7 29.5 18.1% 25.3% 11.3% 14.1% 26.1% 28.0%

HubSpot, Inc. $112.15 4,246 (206) 4,040 10.8 8.3 6.7 NM 95.9 63.5 NM NM NM 38.6% 28.9% 24.2% NM 8.7% 10.6%

MuleSoft, Inc. $30.88 4,061 (204) 3,857 13.0 9.4 7.1 NM NM NM NM NM NM 57.9% 38.7% 32.2% NM NM NM

New Relic, Inc. $72.05 3,995 (233) 3,762 11.4 8.9 7.1 NM NM 56.2 NM NM NM 36.0% 28.5% 24.4% NM 8.6% 12.7%

Okta, Inc. $36.40 3,710 (230) 3,480 13.4 10.1 7.6 NM NM NM NM NM NM 61.9% 32.5% 33.0% NM NM NM

j2 Global, Inc. $75.12 3,688 651 4,339 3.9 3.6 3.3 10.6 8.8 7.8 26.5 12.3 11.1 27.9% 9.3% 7.6% 36.7% 40.3% 42.1%

Qualys, Inc. $74.80 2,889 (288) 2,601 11.3 9.4 8.0 44.9 26.6 22.5 74.1 52.5 44.4 16.6% 20.0% 17.2% 25.1% 35.3% 35.6%

Cloudera, Inc. $18.42 2,602 (390) 2,212 6.1 4.8 4.0 NM NM NM NM NM NM 39.0% 26.9% 21.0% NM NM NM

Box, Inc. $18.45 2,533 (122) 2,411 4.8 4.0 3.3 NM NM 52.6 NM NM NM 27.0% 20.1% 21.8% NM 2.5% 6.2%

Paylocity Holding Corporation $46.60 2,451 (111) 2,340 7.0 5.8 4.7 93.8 27.7 22.0 NM 47.6 40.2 26.4% 21.8% 21.7% 7.5% 20.8% 21.5%

Coupa Software Incorporated $44.28 2,437 (250) 2,188 12.0 9.7 7.8 NM NM NM NM NM NM 35.8% 24.5% 23.9% NM NM 0.7%

Callidus Software Inc. $35.85 2,383 (142) 2,240 8.9 7.4 6.2 NM 43.0 29.8 NM 69.7 48.4 22.4% 19.4% 19.8% NM 17.3% 20.7%

Cornerstone OnDemand, Inc. $41.15 2,359 (30) 2,329 4.8 4.6 4.2 NM 25.9 18.2 NM 61.6 36.9 13.9% 4.5% 10.4% NM 17.8% 23.0%

Alteryx, Inc. $34.80 2,059 (174) 1,885 14.3 10.6 8.0 NM NM NM NM NM NM 53.4% 35.7% 32.0% NM NM NM

Mimecast Limited $34.94 2,020 (88) 1,932 8.0 6.4 5.4 NM 60.3 43.3 NM NM NM 40.9% 25.8% 18.8% 4.6% 10.6% 12.4%

Appian Corporation $28.91 1,756 (74) 1,682 9.5 8.4 7.1 NM NM NM NM NM NM 33.0% 13.1% 19.3% NM NM NM

Five9, Inc. $30.34 1,688 (22) 1,666 8.3 7.2 6.1 NM 62.6 44.1 NM NM 75.8 23.5% 16.3% 17.4% 2.2% 11.4% 13.8%

MongoDB, Inc. $32.94 1,666 (279) 1,387 9.1 6.7 5.0 NM NM NM NM NM NM 50.0% 35.8% 34.7% NM NM NM

Instructure, Inc. $42.90 1,431 (41) 1,390 8.8 6.7 5.3 NM NM NM NM NM NM 43.2% 31.0% 26.7% NM NM NM

Apptio, Inc. $28.52 1,215 (149) 1,066 5.7 4.8 4.1 NM NM 66.4 NM NM NM 17.4% 18.3% 17.9% NM 2.6% 6.1%

SendGrid, Inc. $27.31 1,166 (158) 1,008 9.0 7.2 5.8 NM 65.7 52.7 NM NM NM 40.0% 25.5% 24.2% 5.2% 10.9% 11.0%

1010








SaaS (Cont'd)

Yext, Inc. $12.50 $1,140 ($118) $1,022 6.0x 4.5x 3.4x NM NM NM NM NM NM 36.9% 32.4% 32.6% NM NM NM

SPS Commerce, Inc. $61.70 1,064 (163) 901 4.1 3.7 3.4 44.6 21.1 17.5 NM 45.9 38.2 14.1% 10.0% 10.2% 9.2% 17.6% 19.3%

Workiva Inc. $22.80 971 (57) 913 4.4 3.9 3.4 NM NM NM NM NM NM 16.4% 13.2% 13.5% NM NM NM

LivePerson, Inc. $14.50 863 (56) 807 3.7 3.4 3.0 NM 37.2 27.4 NM NM 87.3 (1.8%) 9.4% 10.9% 1.0% 9.1% 11.1%

Carbonite, Inc. $28.15 787 (16) 770 3.2 2.5 2.2 42.2 9.9 8.6 NM 18.9 15.5 15.7% 27.5% 12.3% 7.6% 25.5% 26.2%

Benefitfocus, Inc. $23.95 749 60 809 3.2 2.9 2.5 42.7 29.2 20.9 NM NM 66.4 9.9% 9.6% 14.4% 7.4% 9.9% 12.1%

Castlight Health, Inc. $3.55 480 (88) 392 3.0 2.6 2.2 NM NM 51.3 NM NM NM 29.2% 16.7% 18.3% NM NM 4.2%

Amber Road, Inc. $9.11 249 13 262 3.3 3.1 2.8 NM NM 54.2 NM NM NM 8.1% 8.3% 10.5% NM 2.1% 5.1%

Brightcove Inc. $6.90 241 (26) 215 1.4 1.3 1.2 NM 55.3 27.9 NM NM 46.0 3.8% 7.0% 8.5% NM 2.3% 4.3%

ChannelAdvisor Corporation $9.05 241 (52) 189 1.5 1.5 1.4 NM 29.3 20.4 NM NM NM 8.2% 5.1% 7.2% NM 5.0% 6.7%

Park City Group, Inc. $10.45 205 (10) 195 9.6 7.1 5.3 47.0 21.8 15.6 74.4 31.7 21.8 24.4% 35.5% 32.5% 20.4% 32.4% 34.3%

Marin Software Incorporated $7.50 43 (24) 19 0.2 NA NA NM NA NA NM NA NA (24.9%) NA NA NM NA NA

Mean 8.2x 6.7x 5.5x 51.1x 36.1x 32.7x 63.4x 43.6x 44.1x 31.1% 22.1% 20.0% 14.6% 18.2% 19.0%

Median 8.2 6.7 5.4 44.9 29.2 27.4 73.5 44.9 40.2 27.4% 21.8% 19.4% 9.3% 17.4% 16.6%

Business Intelligence & Analytics

Splunk Inc. $93.64 $13,246 ($1,067) $12,179 9.6x 7.8x 6.1x NM 57.1x 38.8x NM NM 72.9x 33.8% 22.7% 27.3% NM 13.7% 15.8%

Tableau Software, Inc. $81.48 6,644 (855) 5,789 6.6 6.0 5.3 NM NM 63.7 NM NM NM 6.1% 10.2% 13.5% NM 5.0% 8.3%

Fair Isaac Corporation $169.60 5,100 570 5,670 6.0 5.6 5.2 26.2 20.6 19.1 46.1 26.7 23.0 5.2% 7.0% 7.0% 22.8% 27.1% 27.4%

Teradata Corporation $38.13 4,652 (311) 4,341 2.0 2.0 1.9 32.6 11.3 10.8 NM 24.9 22.0 (7.1%) 1.2% 2.7% 6.2% 17.6% 17.9%

Cloudera, Inc. $18.42 2,602 (390) 2,212 6.1 4.8 4.0 NM NM NM NM NM NM 39.0% 26.9% 21.0% NM NM NM

Verint Systems Inc. $38.75 2,472 451 2,923 2.6 2.4 2.3 11.3 10.3 8.9 14.1 12.6 11.6 7.5% 7.1% 5.8% 22.6% 23.1% 25.4%

Alteryx, Inc. $34.80 2,059 (174) 1,885 14.3 10.6 8.0 NM NM NM NM NM NM 53.4% 35.7% 32.0% NM NM NM

MicroStrategy Incorporated $123.87 1,418 (675) 743 1.5 1.5 1.5 9.2 11.6 10.2 81.0 50.2 39.1 (1.5%) 0.4% 0.8% 16.0% 12.7% 14.2%

Hortonworks, Inc. $18.32 1,330 (73) 1,258 4.8 3.8 3.1 NM NA NA NM NM NM 41.9% 25.2% 24.7% NM NA NA

Gridsum Holding Inc. $10.26 315 (0) 315 3.2 2.0 1.4 NM 15.4 5.6 NM 30.6 10.0 70.6% 59.3% 41.4% NM 13.0% 25.2%

Attunity Ltd. $7.40 153 (29) 124 2.0 1.7 1.4 NM 23.6 NA NM 67.3 42.3 14.0% 19.0% 18.6% NM 7.1% NA

Datawatch Corporation $9.30 115 (30) 85 2.3 2.0 NA NM 85.1 NA NM NM NA 18.9% 12.1% NA NM 2.4% NA

Mean 5.1x 4.2x 3.7x 19.9x 29.4x 22.4x 47.0x 35.4x 31.6x 23.5% 18.9% 17.7% 16.9% 13.5% 19.2%

Median 4.0 3.1 3.1 18.8 18.0 10.8 46.1 28.7 23.0 16.4% 15.6% 18.6% 19.3% 13.0% 17.9%

1111








Vertical

Cerner Corporation $62.37 $20,744 ($279) $20,465 4.1x 3.7x 3.4x 15.0x 11.8x 10.7x 24.3x 23.6x 21.0x 7.1% 9.9% 8.5% 27.1% 31.3% 31.8%

Constellation Software Inc. $653.85 13,856 (156) 13,700 5.5 4.6 4.0 28.8 17.5 15.2 62.4 24.0 20.8 16.7% 21.1% 14.4% 19.2% 26.0% 26.2%

SS&C Technologies Holdings, Inc. $49.34 10,190 1,981 12,172 7.3 6.9 6.5 19.4 16.1 14.9 31.8 21.7 19.8 13.1% 6.0% 4.8% 37.5% 42.6% 44.0%

Veeva Systems Inc. $69.95 9,887 (762) 9,125 13.3 11.1 9.5 55.3 34.2 28.8 76.0 52.9 45.9 26.0% 19.4% 17.8% 24.1% 32.6% 32.9%

Guidewire Software, Inc. $81.03 6,224 (505) 5,719 10.1 8.5 7.3 48.2 37.5 37.5 92.0 84.4 58.7 26.1% 19.2% 15.9% 20.9% 22.5% 19.4%

athenahealth, Inc. $137.49 5,513 108 5,621 4.6 4.2 3.7 34.0 16.1 13.8 NM 36.9 31.1 12.7% 10.5% 11.1% 13.5% 26.0% 27.2%

Blackbaud, Inc. $100.73 4,716 408 5,124 6.5 5.8 5.3 38.3 24.2 21.5 73.0 35.7 31.4 7.9% 11.5% 9.7% 17.0% 24.1% 24.7%

RealPage, Inc. $51.75 4,300 579 4,879 7.3 5.8 5.2 51.5 22.3 18.6 NM 35.7 29.5 18.1% 25.3% 11.3% 14.1% 26.1% 28.0%

Medidata Solutions, Inc. $64.08 3,756 (108) 3,647 6.7 5.7 4.9 43.4 22.2 17.9 86.6 38.4 30.7 17.7% 16.7% 17.5% 15.4% 25.7% 27.2%

CoreLogic, Inc. $45.52 3,709 1,635 5,344 2.9 2.9 2.8 13.9 11.2 10.5 26.0 17.3 15.6 (5.2%) (0.2%) 2.1% 20.8% 25.8% 26.9%

Ellie Mae, Inc. $87.76 3,009 (241) 2,768 6.6 5.6 4.8 39.3 21.2 15.9 59.3 50.7 36.2 15.8% 19.5% 16.8% 16.9% 26.2% 30.0%

Allscripts Healthcare Solutions, Inc. $13.82 2,499 1,421 3,921 2.2 1.8 1.7 26.0 9.0 8.3 NM 17.9 15.4 16.5% 21.6% 5.0% 8.4% 19.9% 20.4%

Inovalon Holdings, Inc. $11.90 1,718 (228) 1,491 3.3 3.2 2.9 19.6 12.8 11.6 50.0 35.0 30.4 5.1% 4.7% 7.6% 16.9% 24.8% 25.3%

Instructure, Inc. $42.90 1,431 (41) 1,390 8.8 6.7 5.3 NM NM NM NM NM NM 43.2% 31.0% 26.7% NM NM NM

AppFolio, Inc. $39.90 1,359 (46) 1,313 9.1 7.2 5.9 NM 35.1 25.7 NM 64.4 43.4 36.2% 26.1% 23.2% 9.1% 20.6% 22.9%

HealthStream, Inc. $24.07 771 (131) 640 2.6 2.8 2.7 24.6 16.3 14.8 77.6 84.7 69.1 9.6% (7.5%) 4.2% 10.5% 17.2% 18.1%

Castlight Health, Inc. $3.55 480 (88) 392 3.0 2.6 2.2 NM NM 51.3 NM NM NM 29.2% 16.7% 18.3% NM NM 4.2%

Mean 6.1x 5.2x 4.6x 32.7x 20.5x 19.8x 59.9x 41.6x 33.3x 17.4% 14.8% 12.6% 18.1% 26.1% 25.6%

Median 6.5 5.6 4.8 31.4 17.5 15.5 62.4 35.7 30.7 16.5% 16.7% 11.3% 16.9% 25.8% 26.6%

1212Notes:Source: Capital IQ as of 3/1/2018. Consensus Estimates used for CY2018E figures.Excludes CALD due to pending acquisition. Estimates for MRIN and SEND are not available.

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1313

Select Software M&A Transactions

RECENT ACQUISITIONS

Notes:Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 3/1/2018, where Enterprise Value is >$50MM.Transactions highlighted in yellow denote Private Equity acquirers. Multiples <0 and >100 considered NM.

($MM)

Announced Enterprise EV / Revenue EV / EBITDA

Date Acquirer Target Target Sector Value (EV) LTM NTM LTM NTM Target Description

2/27/18 Infrastructure $90 3.3x NA NA NA Provides network virtualization, optimization, and performance management software for mobile operators

2/27/18 Security $350 NA NA NA NAProvides enterprise security automation and orchestration software and services. Automation and orchestration features

include phishing investigations, vulnerability management and insider threat mitigation

2/26/18 Security $400 7.3x 5.3x NA NAProvides phishing threat management and behavior-anomaly incident-detection software that enables employees to identify,

report and mitigate spear phishing attacks

2/15/18 Information Management $50 16.7x NA NA NA Provides Internet of Things (IoT) product management platform as a service (PaaS) to businesses building connected products

2/15/18 Application Software $1,900 NA NA NA NAProvides patient analytics SaaS to enable oncology healthcare institutions to aggregate clinical trial data, patient records and

financial data

2/13/18 Storage $146 NA 3.4x NA NA Provides online data back-up and recovery SaaS for businesses and consumers

2/12/18 Infrastructure Management $85 5.7x NA NA NAProvides web application performance management and monitoring software for businesses that optimizes web performance

across datacenter content delivery networks (CDNs) and cloud environments

2/9/18 Infrastructure Management $540 4.9x NA 21.6x NA Provides business process management and workflow automation SaaS and software for businesses globally

2/9/18 Infrastructure Management $197 NA NA NA NAProvides B2B transaction management, spend management, card and invoice management SaaS for banks and their corporate

customers

2/8/18 Enterprise Networking $342 4.3x 3.6x NA NAProvides hosted VoIP and unified communications services for small businesses, enterprises, government agencies and

educational institutions

2/6/18 Security $225 NA NA NA NA Provides information security awareness and training SaaS to organizations

2/2/18 Application Software $500 NA NA NA NA

Provides construction program and capital project management SaaS that enables business process management, bid and

cost tracking, job scheduling, document management, team collaboration and reporting, for the building and construction

industry

1/30/18 Application Software $2,426 9.6x 8.5x NM 58.6x Provides sales performance management SaaS and related services for businesses globally

1/30/18 Systems Software $250 16.7x NA NA NAProvides Linux kernel-based open source operating systems and container management software tools for servers used in

data center and clustered deployment environments

1414


RECENT ACQUISITIONS


($MM)



1/29/18 Security $821 11.7x NA NA NA Provides online transaction anti-fraud software and SaaS

1/11/18 Information Management $188 2.7x NA NA NA Provides data and content management, imaging and regulatory compliance software to medical markets

1/8/18 Application Software $100 NA NA NA NA Provides online electronic healthcare records (EHR) management software

12/18/17 Application Software $1,235 10.0x 8.6x NM 84.4x Provides cloud-based and semi-integrated payment processing software

12/12/17 Information Management $60 1.7x NA NA NAProvides web conferencing, team collaboration and content management SaaS, enabling sales teams to present materials to

clients through online sales presentations and track customer engagement

12/5/17 Application Software $340 NA NA NA NA Provides time-tracking and scheduling SaaS for small and medium-sized businesses, and the self-employed

11/30/17 Application Software $200 NA NA NA NA Provides supply chain analytics and market intelligence SaaS for the energy sector

11/29/17 Security $60 NA NA NA NAProvides employee anti-malware SaaS that separates personal and work-related Web browsing and email, and offers related

protection

11/27/17 Security $1,405 3.8x 3.6x 43.1x 18.9xProvides firewall, spam-filter and anti-virus, Web application protection, SSL VPN, data backup and recovery, and message

archiving appliances and software for businesses globally

11/27/17 Information Management $456 2.2x 2.2x NM 19.6xProvides online community and social network creation software SaaS, enabling businesses to advertise using customer

testimonials

11/17/17 Application Software $50 2.6x NA NA NAProvides finance-focused proposal generation and request-for-proposal (RFP) management, pitchbook building, sales

presentation and compliance SaaS for enterprises globally

11/16/17 Application Software $112 NA NA NA NAProvides software to retailers that allows them to capture images of home furnishings and decor items and display them in

3D for display to consumers on websites, digital advertising and social media

11/16/17 Application Software $137 5.6x NA NA NAProvides software solutions (accounting and tax compliance) for small and medium businesses, larger businesses,

accountants, bookkeepers, and lawyers

11/8/17 Storage NA NA NA NA NA Provides cloud-based email and file archiving SaaS for businesses

1515


RECENT ACQUISITIONS


($MM)



11/7/17 Security $85 NA NA NA NA Provides vending management, scheduling, logistics and analytics SaaS for the retail sector

11/2/17 Infrastructure Management $548 NA NA NA NAProvides electronic design automation (EDA) software used to design system on chip (SoC), analog and embedded

semiconductors for semiconductor designers and OEMs

10/27/17 Infrastructure Management $726 NA NA NA NAProvides energy exchange trade execution, order routing, reporting, market data and risk management software, SaaS and

services for financial services brokers, exchanges and clearing houses

10/26/17 Infrastructure Management $250 4.7x 4.1x 18.9x 13.0xProvides international payment and transaction processing, and multi-currency processing services and offers payment

processing services that enable the authorization and settlement of payment transactions

10/24/17 Application Software $400 NA NA NA NA Develops self-driving vehicle and automated mobile robot vehicle software for businesses

10/24/17 Infrastructure Management $400 NA NA NA NAThe Virtu BondPoint asset of Virtu Financial, which provides trade execution software of fixed income securities for brokers

and advisors globally

10/23/17 Hosted Services $1,917 5.3x 4.7x 80.7x 19.3xProvides hosted unified communications, VoIP and PBX services, as well as telecom management software and SaaS, for

businesses and telecom service providers

10/17/17 Information Management $977 3.4x NA NA NAProvides team collaboration SaaS enabling businesses globally in the life science, financial, oil and gas, technology and

manufacturing industries to securely exchange documents and sync files

10/10/17 Application Software $3,600 NA NA NA NA

Provides healthcare benefit and claims management SaaS, including online claims authorization and eligibility lookup, online

payments, records management, medical practice assessment and client information Web portal, for healthcare providers,

hospitals and patients

10/6/17 Security $275 NA NA NA NAProvides risk analysis and analytics SaaS to the insurance industry. Software provides features for analyzing the financial

impact of cyber risk through real-time data collection and market analytics

10/5/17 Application Software $66 2.7x NA NM NAProvides a searchable online database of US federal, state and local government contracts and RFPs for the purposes of

identifying sales leads for businesses

9/28/17 Application Software $386 5.3x 4.8x 260.9x 43.3xProvides simulation and product engineering software and SaaS for the automotive, transportation, rail, aerospace, oil and

gas sectors globally

9/28/17 Application Software $839 1.9x 2.6x NM 24.8xProvides software and hardware products, based on IP technology, for monitoring and managing energy consumption to the

utilities markets

9/27/17 Application Software $180 4.0x NA NA NA Provides marketing cross-channel attribution SaaS that enables media and video ad performance analytics and optimization

( )

1616


RECENT ACQUISITIONS


($MM)



9/26/17 Application Software $807 NA NA NA NA Provides online and mobile commerce logistics software for shipping companies globally

9/26/17 Application Software $392 NA NA NA NA Provides marketing automation and behavior prediction analytics SaaS for the automotive dealership industry

9/25/17 (VelocityEHS and BOLT

Solutions assets)

Application Software $354 NA NA NA NAThe VelocityEHS and BOLT Solutions assets of Actua. VelocityEHS provides environment, health and safety (EHS) compliance

and incident management software and SaaS for HR professionals

9/25/17 Application Software $195 NA 4.9x NA NA Provides Web-based wealth management SaaS for financial markets

9/20/17 Security $225 6.4x NA NA NA Provides authentication, single sign-on and user identity management SaaS for enterprises

9/6/17 Application Software $475 NA NA NA NAProvides e-commerce and order management software and services for retailers and businesses. Also provides web hosting,

design and integration services

9/5/17 Application Software $200 NA NA NA NA Provides clinical documentation and document management software for the emergency medical sector in the United States

9/5/17 Application Software $713 2.7x NA 13.3x NA Provides manufacturing plant project management and design software for businesses in the industrial industries

All Software

Median 4.7x 4.4x 32.3x 22.2x

Mean 5.8x 4.7x 73.1x 35.3x

PE Acquirers

Median 3.8x 3.6x 32.3x 19.3x

Mean 4.4x 3.7x 32.3x 19.3x

1717

RECENT PRIVATE FINANCINGS

Notes:Source: Pitchbook. Reflects deal activity through 3/1/2018. Transactions reflect recent Software Venture and Private Equity Growth / Expansion activity where the amount raised was greater than or equal to $20MM.

($MM)

Deal Date CompanyAmount

Raised Brief Description Investors

2/28/18 Cloudian $125 Provider of data management services Digital Alpha

2/28/18 Mist Systems $46 Developer of wireless technology platform designed to automate enterprise IT operationsDimension Data, Kleiner Perkins Caufield & Byers, NTT Docomo Ventures, GV, Lightspeed

Venture Partners, Norwest Venture Partners

2/27/18 C2FO $100 Provider of working capital marketplaceAllianz X, Mubadala Investment Company, Mithril Capital Management, Temasek Holdings,

Union Square Ventures

2/27/18 Collective Health $110 Provider of cloud-based self-insurance platformMubadala Development Company, Sun Life Financial, Founders Fund, GV, Maverick Ventures

(San Francisco), New Enterprise Associates

2/27/18 Peakon $22 Developer of a SaaS-based people analytics platform Balderton Capital, EQT Ventures, IdInvest Partners, Sunstone Capital

2/27/18 Qingteng $32Developer of an adaptive security platform designed to protect data on various cloud

systemsSequoia Capital China, China Broadband Capital Partners, Redpoint Ventures, ZhenFund

2/23/18 Simplus $30Provider of cloud integration services designed to help users streamline workflows and

business processesUniversity Growth Fund, EPIC Ventures, Salesforce Ventures, Silicon Valley Bank

2/22/18 Recargapay $22 Provider of a mobile payment platform and wallet designed to simplify daily transactionsInternational Finance Corporation, TheVentureCity, Ventech, DN Capital, Fabrice Grinda, FJ

Labs

2/21/18 Capillary Technologies $20Provider of a SaaS based marketing software designed to engage with customers through

mobile, social and in-store channelsLime Rock Partners, Sequoia Capital India, Warburg Pincus

2/21/18 Udaan $50 Provider of a business-to-business online marketplace Apoletto Asia, Lightspeed India Partners Advisors, Lightspeed Venture Partners

2/21/18Vectra (Network

Management Software)$34

Developer of a network intrusion detection system designed to automate real-time threat

detection and response

Atlantic Bridge Capital, Ireland Strategic Investment Fund, Nissho Electronics, Accel, AME

Cloud Ventures, DAG Ventures, IA Ventures, Khosla Ventures, Wipro Ventures

2/20/18 SparkCognition $57 Provider of cognitive computing analyticsBoeing HorizonX, FF SPARK, Invenergy Future Fund, John Chambers, Pankaj Patel, Brevan

Howard Asset Management, CME Ventures, Verizon Ventures

2/20/18 xMatters $40Developer of an integration-driven collaboration platform that accelerates incident

response and resolutionGoldman Sachs Private Capital Investing Group

2/16/18 Zoomcar $40 Provider of an online platform designed to offer self-drive car rental service Mahindra & Mahindra, Empire Angels, NGP Capital, Sequoia Capital India

2/15/18 LimeBike $120 Operator of a bike sharing platform

AME Cloud Ventures, CBRE, Coatue Management, Equity Residential, Fifth Wall Ventures,

Franklin Templeton Investments, GGV Capital, Hines Corporation, IMO Ventures, Prologis,

Rainbow Technologies, Section 32, StartX, The Durant Company

1818



($MM)



2/15/18 onXmaps $20 Developer of a land ownership data maps applicationBessemer Venture Partners, Millennium Technology Value Partners, Next Frontier Capital,

Stephen Burke, Summit Partners

2/15/18 Roostify $25 Developer of an all-in-one digital platform designed to streamline loan processesCota Capital, Point72 Ventures, Santander InnoVentures, Colchis Capital Management,

JPMorgan Chase & Company

2/14/18 Kakao Games $130 Developer of games compatible with computers and mobile devices Actozsoft, Bluehole, Netmarble Games, Premier Partners, Tencent Holdings

2/14/18 Varsity Tutors $50 Provider of an in-home live learning platform Chan Zuckerberg Initiative, Learn Capital, Technology Crossover Ventures

2/14/18 Vivino $20Provider of a web and mobile based wine marketplace designed to view ratings for wines

from around the globeBalderton Capital, Creandum, Iconical, SCP Neptune International, SEED Capital (Denmark)

2/13/18 Apttus $75 Provider of a cloud-based Quote-to-Cash (QTC) software services Golub Capital

2/13/18 InfluxData $35Provider of a time series database monitoring and analytics platform designed to manage

IoT time-series data at scaleHarmony Partners, Sapphire Ventures, Battery Ventures, Mayfield Fund, Trinity Ventures

2/13/18 Payfone $23Provider of an identity-verification software designed to protect against identity theft and

social engineering attacks from professional attackers

Anil Aggarwal, Jonathan Weiner, MassMutual Ventures, Wellington Management, Andrew

Prozes, Synchrony Financial

2/13/18 Tipalti $30Provider of a cloud-based payable automation platform designed to eliminate mass

payment workload and reduce automation payment riskCerca Partners, Zeev Ventures

2/13/18 UJet $25 Developer of a customer support management platform Citi Ventures, GV, DCM Ventures, Kleiner Perkins Caufield & Byers

2/12/18 Instacart $200Provider of a goods delivery application designed to order and secure delivery of groceries

from local storesCoatue Management, Glade Brook Capital Partners

2/12/18 Lendingkart $88Operator of an online lending platform designed to provide working capital finance for

small and medium enterprises

Fullerton Financial Holdings, Sistema Asia Fund, Bertelsmann India Investments, Darrin

Capital, India Quotient, Mayfield Fund, Saama Capital India Advisors

2/12/18 Stash Invest $38 Provider of an investment applicationUnion Square Ventures, Breyer Capital, Coatue Management, Entrée Capital, Goodwater

Capital, Valar Ventures

2/12/18 XebiaLabs $100Developer of enterprise DevOps and application release automation tools created to

automate and standardize complex application deploymentsAccel, Susquehanna Growth Equity

2/9/18 DataVisor $40 Provider of security analysis software designed to offer big data fraud detection Sequoia Capital China, GSR Ventures, New Enterprise Associates

1919



($MM)



2/8/18 Everipedia $30 Provider of a crowd-sourced wiki platform, online encyclopedia and knowledge base Distributed Network Advisors, Galaxy Investment Partners

2/8/18 Honest Buildings $21 Provider of a cloud-based project management and procurement platform

Bienville Capital Management, Brookfield Property Partners, C-III Capital Partners, Circle

Ventures, DivcoWest, GREENSOIL Investments, Navitas Capital, Oxford Properties Group,

RiverPark Funds, Rudin Management Company, The Durst Organization

2/8/18 Icertis $50Provider of a cloud-based enterprise contract management platform designed to transform

contracts into strategic business assets

Cross Creek Advisors, Meritech Capital Partners, PSP Partners, B Capital Group, Eight Roads

Ventures, Greycroft, Ignition Venture Partners

2/8/18 Swiggy $100Provider of on-demand food delivery platform designed to provide food from

neighborhood restaurants to the peopleMeituan-Dianping, Naspers Ventures

2/7/18 Highfive (Video Conferencing) $32 Developer and marketer of video and web conferencing device Andreessen Horowitz, Dimension Data, General Catalyst Partners, Lightspeed Venture Partners

2/7/18 Phunware $46Provider of a software platform designed to engage, manage and monetize customer

experience

JUMP Investors, Khazanah Nasional, PLDT Capital, S3 Ventures, Baylor Angel Network, Central

Texas Angel Network, Fraser McCombs Capital, Maxima Ventures, Wavemaker Partners, World

Wrestling Entertainment

2/6/18 ACV Auctions $31 Provider of an online auction platform intended for dealers to purchase wholesale vehiclesArmory Square Ventures, Bessemer Venture Partners, SoftBank Capital, Tribeca Venture

Partners

2/6/18 Humatics $24 Developer of microlocation products NA

2/6/18 Marketing Evolution $21Provider of a return on investment (ROI) management software designed to offer insights

on marketing campaignsZetta Venture Partners

2/6/18 Quizlet $20Provider of an online learning platform designed to help students practice and master

educational topicsAltos Ventures, Costanoa Ventures, Owl Ventures, Union Square Ventures

2/5/18 Fair.com $50 Provider of an automotive financing platform BMW i Ventures, G Squared

2/5/18 SmartAction $33Developer of call automation system intended to supply intelligent and effective call

automation availableNA

2/3/18 Ohpen $31Developer of a cloud based core banking engine designed to automate the administration

of financial companiesAmerborgh

2/1/18 Figma $25 Provider of a cloud-based screen design tool designed to create digital products Greylock Partners, Index Ventures (UK)

1/31/18 Asana $75 Developer of task management software designed to help teams track their work 8VC, Founders Fund, Sam Altman

2020



($MM)



1/31/18 Trifacta $48Provider of productivity platforms for data analysis in human-computer interaction,

scalable data management and machine learning

Alphabet, Columbia Pacific Management, DB1 Ventures, Deutsche Börse Group, Ericsson

Ventures, New York Life Ventures, Accel, Cathay Innovation, Greylock Partners, Ignition

Venture Partners, Ridge Ventures

1/30/18 BrowserStack $50 Developer of a SaaS based web and mobile browser testing platform Accel

1/30/18 Next Trucking $21Developer of an online trucking marketplace and application designed to streamline the

shipping processSequoia Capital

1/29/18 ContentSquare $42 Developer of an experience optimization platform for online and mobile businesses Canaan Partners, Eurazeo, Highland Capital Partners Europe, Holding14

1/29/18 Hover $25Developer of a computer vision and 3D mapping technology designed to generate accurate

3D models with a smartphoneGV, Standard Industries, The Home Depot

1/29/18 Logikcull $25 Provider of a cloud-based e-discovery automation platform New Enterprise Associates, OpenView Venture Partners, Storm Ventures

1/29/18 MATRIXX Software $40 Provider of a digital commerce platformCK Hutchison Holdings, Spring Lake Equity Partners, Sutter Hill Ventures, Adams Street

Partners, Greylock Partners, Swisscom Ventures, Telstra Ventures

1/26/18 Ezbob $20Operator of an e-lending platform intended to provide access to funding at any hour of the

dayDa Vinci Capital Management

1/25/18 Arundo Analytics $25Provider of a cloud-based and edge-enabled software for the deployment and

management of enterprise-scale industrial data science solutionsCanica, Horizon Ventures, Stokke Industri, Strømstangen, Sundt, Northgate Capital, StartX

1/25/18 Snowflake $263 Developer of a SaaS based cloud data warehousing platformSequoia Capital, Altimeter, Capital One Growth Ventures, ICONIQ Capital, Madrona Venture

Group, Redpoint Ventures, Sutter Hill Ventures, Wing Venture Partners

1/24/18 Appetize Technologies $27Operator of a point-of-sale technology company designed for the sports and

entertainment, education, and professional industriesSilicon Valley Bank, Oak View Group, Shamrock Capital Advisors

1/24/18 ForUsAll $22Provider of a cloud-based financial platform designed to advise small and mid-sized

businesses on their 401(k) plansRibbit Capital, Foundation Capital

1/24/18 Front $66 Developer of a multi-channel inbox designed to centralize communication channels Draper Fisher Jurvetson, Sequoia Capital

1/24/18 Katerra $865 Developer of a construction technology platform

Canada Pension Plan Investment Board, DivcoWest, Navitas Capital, SoftBank Group, Tavistock

Group, DFJ Growth, Foxconn Technology, Greenoaks Capital, Khosla Ventures, Moore Capital

Management

1/24/18 Nexar $30Developer of a mobile application designed to detect driving hazards and help prevent car

accidents

Alibaba Innovation Ventures, GE Ventures, Ibex Investors, Nationwide Financial Services,

Aleph, Mosaic Ventures, Slow Ventures, True Ventures, Tusk Ventures

2121



($MM)



1/24/18 Showpad $25 Provider of a sales enablement platform Insight Venture Partners

1/23/18 Cumulus Networks $43Developer of a common network operating system designed to bring web-scale networking

to the enterprise cloud

Telstra Ventures, Andreessen Horowitz, Battery Ventures, Diane Greene, Peter Wagner,

Sequoia Capital, SV Angel, Top Tier Capital Partners, Wing Venture Partners

1/23/18 Dianrong $290 Provider of a peer to peer lending platform designed to lend and borrow money onlineCITIC CLSA Capital Markets, GIC Private, Marathon Venture Partners, Orix Corporation Europe,

Simone Investment Managers, China Minsheng Investment

1/23/18 Dremio $25 Developer of self-service data analytics Norwest Venture Partners, Lightspeed Venture Partners, Redpoint Ventures

1/22/18 Paytronix Systems $65 Developer of a SaaS based customer experience management systems Great Hill Partners

1/22/18 Springbuk $20Provider of an online health analytics platform designed to forecast costs, measure

performance and improve healthEcho Health Ventures, HealthQuest Capital, Elevate Ventures, Lewis & Clark Ventures

1/18/18 Bio-Optronics $30Developer of medical practice software, clinical management systems, physician

scheduling and patient ID systemsMainsail Partners,

1/18/18 Folio $63 Developer of a stock trading applicationDentsu Ventures, LINE, Mitsui & Company, SMBC Venture Capital, DCM Ventures, Draper

Nexus

1/18/18 InsideSales.com $35 Provider of a SaaS sales automation and predictive analytics platform Microsoft

1/18/18 PacketFabric $25Provider of a network connectivity management platform designed to deliver coast to

coast connectivity across North AmericaNantWorks

1/18/18 Restaurant365 $20Provider of a cloud-based restaurant-specific software platform intended to combine

restaurant modules with an integrated accounting systemBessemer Venture Partners

1/18/18 Varo Money $45 Developer of a financial technology based banking platform The Rise Fund, Warburg Pincus

1/17/18 Anomali $40Provider of a threat intelligence platform designed to help organizations find and respond

to cyber threats

Deutsche Telekom Capital Partners, Lumia Capital, Sozo Ventures, Telstra, General Catalyst

Partners, GV, IVP, Paladin Capital Group

1/17/18 C3 IoT $100Provider of a cloud-based enterprise Platform-as-a-Service (PaaS) designed to rapidly

deploy big data, AI and IoT applicationsThe Rise Fund, Thomas Siebel, Breyer Capital, Sutter Hill Ventures, TPG Growth

1/17/18 Circleci $31Provider of a continuous integration platform that offers automated testing and

continuous integration tools

Industry Ventures, Top Tier Capital Partners, Baseline Ventures, Draper Fisher Jurvetson,

Harrison Metal Capital, Heavybit, Scale Venture Partners

2222

Recent Software IPO Pricings

SOFTWARE CAPITAL MARKETS UPDATE

Notes:Sources: Capital IQ and Company filings as of 3/1/2018. IPO pricings include public registrations only. (1) First Trading Day listed as Offer Date.

($MM)

Offer Date(1)Market Cap @

IPO DateAmount Raised Pre IPO Filing Range Offer Price

% Change

Offer /

Midpoint Price

% Change

1st Trading Day / Offer

Price

% Change Current /

Offer Price

17-Nov-17 $1,110 $240 9.00 - 11.00 $12.00 20.0% 8.3% 25.3%

15-Nov-17 $734 $131 13.50 - 15.50 $16.00 10.3% 12.5% 31.8%

1-Nov-17 $1,106 $156 11.00 - 13.00 $13.00 8.3% 40.8% 80.5%

19-Oct-17 $1,570 $192 20.00 - 22.00 $24.00 14.3% 33.6% 15.8%

25-May-17 $881 $75 11.00 - 13.00 $12.00 - 25.1% 72.7%

28-Apr-17 $2,318 $225 12.00 - 14.00 $15.00 15.4% 20.7% 6.1%

13-Apr-17 $1,146 $116 8.00 - 10.00 $11.00 22.2% 21.9% 22.6%

7-Apr-17 $2,134 $187 15.00 - 17.00 $17.00 6.3% 38.3% 68.9%

24-Mar-17 $873 $126 12.00 - 14.00 $14.00 7.7% 10.7% 77.8%

17-Mar-17 $3,118 $221 14.00 - 16.00 $17.00 13.3% 45.6% 35.5%

Name

2323Notes:Sources: Capital IQ, company filings. Market data as of 3/1/2018.

A SHRINKING UNIVERSE OF PUBLICLY TRADED SOFTWARE COMPANIESStrategic and Private Equity Exits Outweigh New Issues

195

150

(5)

(4)

(6)(9) (6)

(7)

(8)

(9)

(7)

(7)

(11)

(8)(11)

(9)

(6)

(10)

(12)

(13)

(1)

6

11

717

1617

11

9

10

130

140

150

160

170

180

190

200

210PE Acquisitions Strategic Acquisitions IPO

YTD 20182008 2009 2010 2011 20152012 2013 2014 2016 2017

FortinetCDC Software

LogMeInMedidata

SolarWindsRosetta Stone

SciQuestRealPageIntraLinksEnvestnet

Qlik BroadSoft

Higher One Convio

SPS CommerceSS&C

QuinStreet

JiveImperva

CarboniteTangoe

ResponsysCornerstone

Epocrates

WorkdayFleetmatics

QualysEloquaE2open

ServiceNowExa

IncadeaInfloblox

ProofpointSplunk

ExactTargetDemandwareBazaarvoiceGreenway

AVGGuidewire

MavenirBarracudaWix.comCovisint

RingCentralFireEyeCvent

Gigamon Textura

ChannelAdvisorMarketoTableauHalogen

RallyMarin

Model N

WorkivaHortonworks

New RelicHubSpotCyberArk

MobileIronKinaxis

ZendeskPaycom

OPOWERFive9

2UBorderfree

Amber RoadA10 Networks

PaylocityVaronis Systems

AtlassianMimecast

InstructureRapid7Sophos

AppFolioAlarm.Com

XactlyShopifyApigee

Box

TwilioSecureWorks

TalendEverbridge

Apptio Gridsum Holding

NutanixCoupa

BlackLine, Inc.

MulesoftAlteryx

OktaYext

ClouderaAppian

MongoDBAltair Engineering

SendGridSailPoint

2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD 2018

IPO + 6 + 11 + 7 + 17 + 16 + 17 + 11 + 9 + 10 + 0

Strategic Exits - 7 - 11 - 8 - 11 - 9 - 6 - 10 - 12 - 13 - 1

PE Exits - 5 - 4 - 6 - 9 - 6 - 7 - 8 - 9 - 7 - 0

2424

TMT Transactions Since Q3 2002

VENTURE CAPITAL INDUSTRY

Notes:(1) Number of TMT VC Investments per PriceWaterhouseCoopers / NVCA MoneyTree report. TMT inclusive of Computers and Peripherals, Electronics / Instrumentation, IT Services, Media and Entertainment, Networking and

Equipment, Semiconductors, Software and Telecommunications until Q3 2016. As of Q4 2016, TMT inclusive of Computer Hardware / Services, Electronics, Internet, Media (Traditional), Mobile / Telecommunications, Risk & Security Systems, and Software.

0

200

400

600

800

1,000

$0

$2

$4

$6

$8

$10

$12

$14

Q4 2002 Q4 2003 Q4 2004 Q4 2005 Q4 2006 Q4 2007 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Nu

mb

er o

f In

vest

men

ts

$B

n

Quarter - Year

Number of Deals Investment Amount(1)

software sector summary report - gca altium...2) financings include software venture and private...

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