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The Tech M&A market in the first quarter of 2013 has been hotter than any time since 2000--bolstered by booming public markets, record cash and continuing disruptive technological change. How is your market faring? During this quarterly report, get the details on the key deals, trends and valuations in the Horizontal, Vertical, Consumer, Internet, Infrastructure and IT Services markets--plus reports on all 26 subsectors.
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1
Global Tech M&A Monthly
Q1: 2013 Report
2
Agenda
Welcome
Field Report: Cisco’s latest acquisition
Quarterly Research Report
Special Report: China
Korea: Global M&A Center
Q&A
3
Jon ScottSenior Vice PresidentCorum Group Ltd.
Jon joined Corum in 2010 out of their Seattle headquarters and is now based in Amsterdam. He has close to 30 years experience serving high technology companies with the last 20 mainly in chief operating and chief executive roles. During this time Jon has become known for his ability to successfully integrate strategies and tactics into well executed operating plans, building strong teams and achieving excellent results.
Jon has served as President and CEO of The PowerTech Group, a security and compliance software company sold to Help/Systems in 2008, and Microserv Technology Services, a nationwide tech services company which was acquired by Halifax Corporation in 2003. Earlier he served as President and COO of Traveling Software, a leading developer of communications software in Seattle. Prior to his operating roles Jon held vice president roles in sales, marketing and business development for technology companies.
Jon has taught in the software product management program at the University of Washington and holds a business administration degree from San Francisco State University.
Field Report – SolveDirect
Corum acted as exclusive M&A advisor to SolveDirect
has announced intentions to acquire
4
Contact:
ambers@corumgroup.com
Corum Research Report
Elon GasperVice President,Director of Research
Contact:
in/elongasper
elong@corumgroup.com
Amber StonerSenior Analyst
Jason SteblayResearch AnalystContact:
jasons@corumgroup.com
Alina SoltysSenior Analyst
Contact:
in/soltysa
alina.soltys
alinas@corumgroup.com
5
Public Markets
-2%
3%
8%
13%
18%
23%Weekly Percentage Change
NASDAQ S&P TECHDow Jones
6
Q1:12 Q1:13
# of Transactions 919 775
# of Mega Deals 8 10
Largest Deal $5.0B $24.4B
Private Equity Deals 29 36
# VC backed Exits 171 172
% Cross Border Transactions 30% 32%
% of Startup Acquisitions* 14% 12%
Average Life of Target 13 14
Corum Index
* 0 to 3 years
Buyer Seller Price
Silver Lake Partners
Dell Inc. $24.4b
Liberty Global Virgin Media Group
$16b
VTB Group Tele2 AB $2.4b
Oracle Acme Packet $2.1b
Charter Communications
Bresnan Communications
$1.6b
Worldwide mergers and acquisitions activity was up 10 percent in the first quarter 2013
- Thomson Reuters quarterly report.
7
Q1:12 Q1:13
# of Transactions 919 775
# of Mega Deals 8 10
Largest Deal $5.0B $24.4B
Private Equity Deals 29 36
# VC backed Exits 171 172
% Cross Border Transactions 30% 32%
% of Startup Acquisitions* 14% 12%
Average Life of Target 13 14
Corum Index
* 0 to 3 years
Buyer Seller Price
Silver Lake Partners
Dell Inc. $24.4b
Liberty Global Virgin Media Group
$16b
VTB Group Tele2 AB $2.4b
Oracle Acme Packet $2.1b
Charter Communications
Bresnan Communications
$1.6b
Worldwide mergers and acquisitions activity was up 10 percent in the first quarter 2013
- Thomson Reuters quarterly report.
Divested to
Sector: TelecomTarget: Tele2 AB [RUSSIA]Acquirer: VTB Group [RUSSIA]Transaction Value: $2.4 billion in cash
- Tele2 is one of Europe’s leading telecom operators with 22 million subscribers in Russia
- Acquisition includes the Russian division of Tele2
Deal Spotlight
8
FLASHBACK: Corum April 2012 Special Impact Report
The JOBS Act makes it easier to Raise private money Stay private longer Go public
Profound impact on Tech M&A
3 main parts
Title I IPO On-Ramp
Title II Solicitation rules relaxed + Safe Harbors
Title III Crowdfunding
UPDATE: SEC blew deadline, postponed implementation (as Corum predicted in April 2012)
Obama: “Because of this bill, start-ups and small business have access to a big, new pool of potential investors.”
9
Big Data Visualization
IPO - Seeking to raise about $150m
NYSE symbol “DATA” come May
Financials
Revenue: $128m
Net Income $1.6m
Sales growth rate up 105%
AS SEEN ON
Market Spotlight Series
10
Q1:11 Q2:11 Q3:11 Q4:11 Q1:12 Q2:12 Q3:12 Q4:12 Q1:13 Q1:11 Q2:11 Q3:11 Q4:11 Q1:12 Q2:12 Q3:12 Q4:12 Q1:13
EV/EBITDA
12.34 12.29 9.44 10.49 10.95 9.83 10.43 9.91166666666667
10.7883333333333
EV/S
2.38 2.27 1.82 1.77 2.04 1.76 1.8 1.77833333333333
1.915
Corum Index – Aggregate Valuations
6-markets
11
Horizontal Application Software MarketPublic Valuation
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
16.55 11.77 13.58 13.13 12.72 14.03 15.08 12.75 13.25 13.42 15 12.44 12.97
EV/S
3.22 2.72 2.47 2.63 2.52 2.77 2.75 2.76 2.83 2.61 2.67 2.57 2.71
12
Horizontal Application Software Market
Informatica Corp. MicroStrategy Inc.
Amdocs Ltd. Nuance Communications
Salesforce.com Convergys Corp.
Open Text Corp.
Oracle Corp NetSuite
Callidus Software Inc. Saba Software Inc.
Trimble Navigation Ltd. Concur Technologies Inc.
SPS Commerce Inc. Manhattan Associates Inc.
Business Intelligence
EV/S 2.76 xEV/EBITDA 17.66 x
Communications
EV/S 1.21 x
EV/EBITDA 11.76 x
Content Mgmt.
EV/S 2.88 x
EV/EBITDA 9.87 x
Human Resources
EV/S 2.12 x
EV/EBITDA 67.81 x
ERP
EV/S 2.55 x
EV/EBITDA 10.15 x
SCM
EV/S 5.50 x
EV/EBITDA 15.81 x
CRM
EV/S 4.16 x
EV/EBITDA 19.96 x
Horizontal Other
EV/S 4.14 x
EV/EBITDA 14.21 x
13
Horizontal Application Software Market
Informatica Corp. MicroStrategy Inc.
Amdocs Ltd. Nuance Communications
Salesforce.com Convergys Corp.
Open Text Corp.
Oracle Corp NetSuite
Callidus Software Inc. Saba Software Inc.
Trimble Navigation Ltd. Concur Technologies Inc.
SPS Commerce Inc. Manhattan Associates Inc.
Business Intelligence
EV/S 2.76 xEV/EBITDA 17.66 x
Communications
EV/S 1.21 x
EV/EBITDA 11.76 x
Content Mgmt.
EV/S 2.88 x
EV/EBITDA 9.87 x
Human Resources
EV/S 2.12 x
EV/EBITDA 67.81 x
ERP
EV/S 2.55 x
EV/EBITDA 10.15 x
SCM
EV/S 5.50 x
EV/EBITDA 15.81 x
CRM
EV/S 4.16 x
EV/EBITDA 19.96 x
Horizontal Other
EV/S 4.14 x
EV/EBITDA 14.21 x
Sold to
Target: G4 AnalyticsAcquirer: The Nielsen CompanyTransaction Value: Undisclosed
- Extends Nielsen’s position as a global leader in trade promotion management, combining Nielsen’s data and trade promotion modeling capabilities for strategic planning with G4's applications for tactical sales planning and execution.
Sold to
Deal Spotlights: BI
Target: Angoss Software Corporation [CAN]Acquirer: Peterson PartnersTransaction Value: $5.35 million
- Provides business intelligence (BI) analytics software and software as a service (SaaS) for the financial, retail, insurance and technology sectors. Software enables businesses to gain insight into sales figures, marketing campaign and credit risks.
14
Horizontal Application Software Market
Informatica Corp. MicroStrategy Inc.
Amdocs Ltd. Nuance Communications
Salesforce.com Convergys Corp.
Open Text Corp.
Oracle Corp NetSuite
Callidus Software Inc. Saba Software Inc.
Trimble Navigation Ltd. Concur Technologies Inc.
SPS Commerce Inc. Manhattan Associates Inc.
Business Intelligence
EV/S 2.76 xEV/EBITDA 17.66 x
Communications
EV/S 1.21 x
EV/EBITDA 11.76 x
Content Mgmt.
EV/S 2.88 x
EV/EBITDA 9.87 x
Human Resources
EV/S 2.12 x
EV/EBITDA 67.81 x
ERP
EV/S 2.55 x
EV/EBITDA 10.15 x
SCM
EV/S 5.50 x
EV/EBITDA 15.81 x
CRM
EV/S 4.16 x
EV/EBITDA 19.96 x
Horizontal Other
EV/S 4.14 x
EV/EBITDA 14.21 x
Sold to
Sector: Business IntelligenceTarget: Altosoft, Inc.Acquirer: KofaxTransaction Value: $13.5 million in cash
- Altosoft’s software provides rapid, no-coding development of near real time reporting and dashboard applications through the use of a data integration and analytics engine utilizing in-memory techniques.
- Kofax now has all of the core capabilities necessary to provide market leading smart process applications.
Deal Spotlight: BI
15
Horizontal Application Software Market
Informatica Corp. MicroStrategy Inc.
Amdocs Ltd. Nuance Communications
Salesforce.com Convergys Corp.
Open Text Corp.
Oracle Corp NetSuite
Callidus Software Inc. Saba Software Inc.
Trimble Navigation Ltd. Concur Technologies Inc.
SPS Commerce Inc. Manhattan Associates Inc.
Business Intelligence
EV/S 2.76 xEV/EBITDA 17.66 x
Communications
EV/S 1.21 x
EV/EBITDA 11.76 x
Content Mgmt.
EV/S 2.88 x
EV/EBITDA 9.87 x
Human Resources
EV/S 2.12 x
EV/EBITDA 67.81 x
ERP
EV/S 2.55 x
EV/EBITDA 10.15 x
SCM
EV/S 5.50 x
EV/EBITDA 15.81 x
CRM
EV/S 4.16 x
EV/EBITDA 19.96 x
Horizontal Other
EV/S 4.14 x
EV/EBITDA 14.21 xTarget: conTgo [UK]Acquirer: Concur Technologies
- Adds comprehensive location-based services with advanced mobile communications and messaging capabilities to Concur's offerings, extending the value of the Concur T&E Cloud for partners, suppliers and clients alike.
Sold to
Deal Spotlights: HCM
Sold to
Target: CERTPOINT SystemsAcquirer: Infor Global Solutions
- Enables Infor to offer customers an end-to-end HCM solution, delivered to help maximize access and business insight and achieve breakthrough performance.
16
Consumer Application Software MarketPublic Valuation
Digital Content
EV/S 1.10 x
EV/EBITDA 11.64 x
Video Games
EV/S 2.03 x
EV/EBITDA 6.21 x
Adobe Systems, Inc. Netflix
Electronic Arts, Inc. Activision Blizzard, Inc.
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
6.77 6.77 8.38 8.17 7.66 6.9 7.67 7.1 6.16 6.07 6.03 6.46 7.26
EV/S
1.67 1.18 1.13 1.05 1.04 1.36 1.25 1.26 1.31 1.29 1.68 1.45 1.66
17
Consumer Application Software MarketDeal Spotlights
Digital Content
EV/S 1.10 x
EV/EBITDA 11.64 x
Video Games
EV/S 2.03 x
EV/EBITDA 6.21 x
Adobe Systems, Inc. Netflix
Electronic Arts, Inc. Activision Blizzard, Inc.
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
6.77 6.77 8.38 8.17 7.66 6.9 7.67 7.1 6.16 6.07 6.03 6.46 7.26
EV/S
1.67 1.18 1.13 1.05 1.04 1.36 1.25 1.26 1.31 1.29 1.68 1.45 1.66
Target Rumored Value Description
$10 million Provides an online service that enables consumers to save, organize and rate Web content through www.snip.it. Website also provides social networking features.
Undisclosed
Provides a smart phone application that enables consumers to search for new restaurants and businesses nearby based on recommendations from places they have previously visited.
UndisclosedProvides a smart phone application that enables iOS device users to receive recommendations on books, movies and restaurants.
$30 million Provides a smart phone application to enable Apple iOS device users to receive custom news summaries.
Summly
18
Internet MarketPublic Valuation
Akami Technologies Inc. Juniper Networks Inc.
Amazon.com Google Inc.
Internet Infrastructure
EV/S 1.73 x
EV/EBITDA 12.20 x
Internet Pure Play
EV/S 1.95 x
EV/EBITDA 12.72 x
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
11.47 10.81 9.86 10.08 11.22 11.4 11.67 10 10.49 11.93 12.61 12.26 12.3
EV/S
2.13 1.85 1.75 1.89 2.19 2.03 2.02 2.06 1.96 1.89 2.22 1.99 1.88
19
Internet MarketDeal Spotlights
Akami Technologies Inc. Juniper Networks Inc.
Amazon.com Google Inc.
Internet Infrastructure
EV/S 1.73 x
EV/EBITDA 12.20 x
Internet Pure Play
EV/S 1.95 x
EV/EBITDA 12.72 x
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
11.47 10.81 9.86 10.08 11.22 11.4 11.67 10 10.49 11.93 12.61 12.26 12.3
EV/S
2.13 1.85 1.75 1.89 2.19 2.03 2.02 2.06 1.96 1.89 2.22 1.99 1.88
Target: StorylaneAcquirer: Facebook
- Acquired employees of Storylane, which operates a social networking and blogging website that enables users to author long-form content.
Sold to
Target: Hot StudioAcquirer: Facebook
- Acquired employees of Hot Studio, which provides Web design, enterprise and mobile application development, and online marketing consulting services for businesses in the US
Sold to
20
Internet MarketDeal Spotlights
Akami Technologies Inc. Juniper Networks Inc.
Amazon.com Google Inc.
Internet Infrastructure
EV/S 1.73 x
EV/EBITDA 12.20 x
Internet Pure Play
EV/S 1.95 x
EV/EBITDA 12.72 x
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
11.47 10.81 9.86 10.08 11.22 11.4 11.67 10 10.49 11.93 12.61 12.26 12.3
EV/S
2.13 1.85 1.75 1.89 2.19 2.03 2.02 2.06 1.96 1.89 2.22 1.99 1.88
Sold to
Sold to
Sold to
21
Internet MarketPublic Valuation
Akami Technologies Inc. Juniper Networks Inc.
Amazon.com Google Inc.
Internet Infrastructure
EV/S 1.73 x
EV/EBITDA 12.20 x
Internet Pure Play
EV/S 1.95 x
EV/EBITDA 12.72 x
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
11.47 10.81 9.86 10.08 11.22 11.4 11.67 10 10.49 11.93 12.61 12.26 12.3
EV/S
2.13 1.85 1.75 1.89 2.19 2.03 2.02 2.06 1.96 1.89 2.22 1.99 1.88
Sold to
Sector: Internet Pure PlayTarget: Goodreads Acquirer: AmazonTransaction Value: Estimated $150 million
- Goodreads is a leading site for readers and book recommendations that helps people find and share books they love
- Both Amazon and Goodreads have helped thousands of authors reach a wider audience and make a better living at their craft.
22
Vertical Application Software MarketPublic Valuation
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
10.63 9.54 9.34 9.78 9.51 9.8 10.06 9.61 9.92 10.02 10.23 12.08 11.67
EV/S
2.36 2.12 2.01 2.09 2 2.01 2.28 2.24 2.17 2.11 2.32 2.35 2.49
23
Vertical Application Software Market
Autodesk Inc. Parametric Technology
Itron Inc. Schlumberger Ltd.
Advent Software Inc. Fiserv Inc.
Harris Corp. Lockheed Martin Corp.
Cerner Corp. AllScripts Healthcare Inc.
Rockwell Automation Inc. OpenTable Inc.
A/E/C (Architecture / Engineering /Construction)
EV/S 2.82 x
EV/EBITDA 14.56 x
Government
EV/S 0.78 x
EV/EBITDA 6.05 x
Energy & Environment
EV/S 2.49 x
EV/EBITDA 9.54 x
Financial Services
EV/S 3.65 x
EV/EBITDA 14.24 x
Vertical Other
EV/S 1.91 x
EV/EBITDA 11.11 x
Healthcare
EV/S 3.91 x
EV/EBITDA 21.88 x
24
Vertical Application Software MarketDeal Spotlights: Insurance
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
10.63 9.54 9.34 9.78 9.51 9.8 10.06 9.61 9.92 10.02 10.23 12.08 11.67
EV/S
2.36 2.12 2.01 2.09 2 2.01 2.28 2.24 2.17 2.11 2.32 2.35 2.49
Target Acquirer Description
Provides policy administration software for commercial property and casualty insurance carriers throughout the US.
Property & Casualty assets, which provide EDI software for the insurance sector in the US.
Provides worker compensation policy and related insurance quote software as a service (SaaS) for insurance markets.
Provides insurance and reinsurance policy quotation and placement software as a service (SaaS) for the insurance sector in Europe and the Middle East.
25
Vertical Application Software MarketDeal Spotlight
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
10.63 9.54 9.34 9.78 9.51 9.8 10.06 9.61 9.92 10.02 10.23 12.08 11.67
EV/S
2.36 2.12 2.01 2.09 2 2.01 2.28 2.24 2.17 2.11 2.32 2.35 2.49
Sold to
Sector: Financial ServicesTarget: Camilion Solutions, Inc. [CAN]Acquirer: SAP AG [Germany]
- Broadens portfolio in the insurance space, providing insurers with powerful software tools to streamline the management and creation of new products
- Prominently positions SAP in the rapidly emerging market for integrated core insurance platforms, the industry's first "Super Suite.“
- “The first serious move into the insurance vertical solutions space by a global technology firm since Oracle bought AdminServer and Skywire in 2008.” – Novarica, via InsuranceNetworking.com
26
Infrastructure Software MarketPublic Valuation
03/13/2012
04/13/2012
05/14/2012
06/15/2012
07/16/2012
08/17/2012
09/18/2012
10/19/2012
11/20/2012
12/21/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/13/2012
05/14/2012
06/15/2012
07/16/2012
08/17/2012
09/18/2012
10/19/2012
11/20/2012
12/21/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
11.97 10.74 9.64 10.46 10.58 10.67 10.61 9.87 9.72 10.01 10.84 9.69 10.31
EV/S
2.27 2.39 2.25 2.38 2.09 2.16 2.07 1.99 1.99 2.27 2.38 2.15 2.21
27
Infrastructure Software Market
BroadSoft Inc. Vocus, Inc.
Compuware Corp. Progress Software Corp.
BluePhoenix Solutions Ltd. Tibco Software Inc.
Cisco Systems Inc. NetScout Systems Inc.
Symantec Corp. VeriSign Inc.
BMC Software Inc. CA Inc.
EMC Corp. Qlogic Corp.
Citrix Systems Inc. VMware Inc.
Infrastructure Communications
EV/S 1.85 x
EV/EBITDA 11.84 x
Network Management
EV/S 2.62 x
EV/EBITDA 10.42 x
Storage
EV/S 1.18 x
EV/EBITDA 5.72 x
Virtualization
EV/S 3.38 x
EV/EBITDA 20.56 x
Security
EV/S 4.08 x
EV/EBITDA 11.37 x
Development Tools
EV/S 2.74 x
EV/EBITDA 12.39 x
Legacy/SOA
EV/S 3.52 x
EV/EBITDA 7.38 x
Systems Management
EV/S 2.49 x
EV/EBITDA 9.68 x
28
Infrastructure Software Market
BroadSoft Inc. Vocus, Inc.
Compuware Corp. Progress Software Corp.
BluePhoenix Solutions Ltd. Tibco Software Inc.
Cisco Systems Inc. NetScout Systems Inc.
Symantec Corp. VeriSign Inc.
BMC Software Inc. CA Inc.
EMC Corp. Qlogic Corp.
Citrix Systems Inc. VMware Inc.
Infrastructure Communications
EV/S 1.85 x
EV/EBITDA 11.84 x
Network Management
EV/S 2.62 x
EV/EBITDA 10.42 x
Storage
EV/S 1.18 x
EV/EBITDA 5.72 x
Virtualization
EV/S 3.38 x
EV/EBITDA 20.56 x
Security
EV/S 4.08 x
EV/EBITDA 11.37 x
Development Tools
EV/S 2.74 x
EV/EBITDA 12.39 x
Legacy/SOA
EV/S 3.52 x
EV/EBITDA 7.38 x
Systems Management
EV/S 2.49 x
EV/EBITDA 9.68 xTarget: Dartware, LLCAcquirer: Help/Systems Inc.Transaction Value: Undisclosed
- Help/Systems can now provids a more expansive solution set for its multi-platform customers: network monitoring and analysis with InterMapper and job scheduling with Skybot Scheduler.
Sold to
Target: Vineyard Networks [CAN]Acquirer: Procera NetworksTransaction Value: $28.4 million - $15.62m in stock and $12.78m in cash
- Enables Procera to expand their total addressable market through their OEM business to include enterprise network equipment vendors, adding the entire enterprise space along with additional opportunities in the service provider OEM market.
Sold to
29
Infrastructure Software Market
BroadSoft Inc. Vocus, Inc.
Compuware Corp. Progress Software Corp.
BluePhoenix Solutions Ltd. Tibco Software Inc.
Cisco Systems Inc. NetScout Systems Inc.
Symantec Corp. VeriSign Inc.
BMC Software Inc. CA Inc.
EMC Corp. Qlogic Corp.
Citrix Systems Inc. VMware Inc.
Infrastructure Communications
EV/S 1.85 x
EV/EBITDA 11.84 x
Network Management
EV/S 2.62 x
EV/EBITDA 10.42 x
Storage
EV/S 1.18 x
EV/EBITDA 5.72 x
Virtualization
EV/S 3.38 x
EV/EBITDA 20.56 x
Security
EV/S 4.08 x
EV/EBITDA 11.37 x
Development Tools
EV/S 2.74 x
EV/EBITDA 12.39 x
Legacy/SOA
EV/S 3.52 x
EV/EBITDA 7.38 x
Systems Management
EV/S 2.49 x
EV/EBITDA 9.68 xTarget: Packet Design, Inc.Acquirer: Lone Rock Technology GroupTransaction Value: Undisclosed
- The leading provider of route analytics software for IP networks - its patented technology provides unique visibility into routing and traffic behavior across the entire cloud.
Sold to
Target: LineRate SystemsAcquirer: F5 Networks, Inc.Transaction Value: Undisclosed
- F5 gains access to LineRate’s layer 7+ networking services technology, intellectual property, and engineering talent, further building on F5’s commitment to bring superior service agility, application intelligence, and programmability to software defined data centers.
Sold to
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Infrastructure Software Market
BroadSoft Inc. Vocus, Inc.
Compuware Corp. Progress Software Corp.
BluePhoenix Solutions Ltd. Tibco Software Inc.
Cisco Systems Inc. NetScout Systems Inc.
Symantec Corp. VeriSign Inc.
BMC Software Inc. CA Inc.
EMC Corp. Qlogic Corp.
Citrix Systems Inc. VMware Inc.
Infrastructure Communications
EV/S 1.85 x
EV/EBITDA 11.84 x
Network Management
EV/S 2.62 x
EV/EBITDA 10.42 x
Storage
EV/S 1.18 x
EV/EBITDA 5.72 x
Virtualization
EV/S 3.38 x
EV/EBITDA 20.56 x
Security
EV/S 4.08 x
EV/EBITDA 11.37 x
Development Tools
EV/S 2.74 x
EV/EBITDA 12.39 x
Legacy/SOA
EV/S 3.52 x
EV/EBITDA 7.38 x
Systems Management
EV/S 2.49 x
EV/EBITDA 9.68 x
Sold to
Sector: Network ManagementTarget: Coyote Point SystemsAcquirer: FortinetTransaction Value: Undisclosed
- Provides Web, email and file-transfer -focused load balancing, application acceleration and traffic management and server performance optimization appliances for businesses globally.
- Should allow Fortinet to focus its efforts on its own hardware by integrating more of its security functionality.
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IT Services MarketPublic Valuation
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
8.28 8.69 7.27 7.36 7.51 7.46 7.46 6.73 7.32 8.02 8.11 9.73 10.22
EV/S
0.57 0.59 0.44 0.53 0.54 0.46 0.45 0.47 0.48 0.5 0.51 0.5 0.54
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IT Services MarketPublic Valuation
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
8.28 8.69 7.27 7.36 7.51 7.46 7.46 6.73 7.32 8.02 8.11 9.73 10.22
EV/S
0.57 0.59 0.44 0.53 0.54 0.46 0.45 0.47 0.48 0.5 0.51 0.5 0.54
Sold to
Target: 2e2 (4 European subsidiaries) [UK]Acquirer: Logicalis Group [UK]Transaction Value: $31 million
- Acquiring four European subsidiaries of 2e2 with operations in Spain, Ireland, the Netherlands and the Channel Islands
- Delivers on their stated intentions to grow their European presence and augment their solutions and services capabilities
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IT Services MarketDeal Spotlights
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
03/13/2012
04/14/2012
05/15/2012
06/16/2012
07/17/2012
08/18/2012
09/19/2012
10/20/2012
11/21/2012
12/22/2012
01/23/2013
02/24/2013
03/25/2013
EV/EBITDA
8.28 8.69 7.27 7.36 7.51 7.46 7.46 6.73 7.32 8.02 8.11 9.73 10.22
EV/S
0.57 0.59 0.44 0.53 0.54 0.46 0.45 0.47 0.48 0.5 0.51 0.5 0.54
Divested to
Target: Mitel Networks Corporaton (DataNet CommSource Business)Acquirer: EarthBendTransaction Value: Up to $20m consisting of cash or vendor take-back promissory notes
- The divestiture of DataNet CommSource is part of Mitel's ongoing strategy to simplify and focus the company's core business.
Target: The Hackett Group (Oracle ERP practice)Acquirer: KPMGTransaction Value: Undisclosed
- Broadens KPMG's existing ERP capabilities, while further enhancing the firm's Oracle consulting services
EarthBendDivested to
34
Asian IT ServicesPublic Valuation
10/20/2012 11/21/2012 12/22/2012 01/23/2013 02/24/2013 03/25/2013 10/20/2012 11/21/2012 12/22/2012 01/23/2013 02/24/2013 03/25/2013
Series1
9.22 12 13.36 14.24 13.4 12.15
Series2
1.72 2.49 2.64 2.8 2.76 2.76
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Asian IT ServicesDeal Spotlight
10/20/2012 11/21/2012 12/22/2012 01/23/2013 02/24/2013 03/25/2013 10/20/2012 11/21/2012 12/22/2012 01/23/2013 02/24/2013 03/25/2013
Series1
9.22 12 13.36 14.24 13.4 12.15
Series2
1.72 2.49 2.64 2.8 2.76 2.76
Sold to
Target: Transcend United TechnologiesAcquirer: AGC Networks [India]Transaction Value: Undisclosed
- Acquisition is in line with AGC’s 103 growth strategy offering seamless delivery of 10 key solutions, through 10 key alliances across 10 key geographies.
- Transcend’s core competencies in Unified Communications and Data Center Infrastructure, together with the global presence of AGC, positions them as a leader in this rapidly growing space
36
Contact:
ambers@corumgroup.com
Corum Research Report
Elon GasperVice President,Director of Research
Contact:
in/elongasper
elong@corumgroup.com
Amber StonerSenior Analyst
Jason SteblayResearch AnalystContact:
jasons@corumgroup.com
Alina SoltysSenior Analyst
Contact:
in/soltysa
alina.soltys
alinas@corumgroup.com
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A leader in the software industry, Bruce has founded or owned four software companies, including the largest vertical market software company, AMI, an Inc. 500 firm rated by IDC as the fastest growing computer-related company in the world.
He has served on advisory boards for Microsoft, IBM, DEC, Comdex and Apple, and as board member/founding investor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Past advisor to two governors and a senator, a board member of the Washington Technology Center, and founder of the WTIA, the nation’s most active regional technology trade association.
He worked with the Canadian government to found SoftWorld, and he was recently chosen as one of the 200 most influential individuals in the IT community in Europe. He was also the only American juror for the recent Tornado 100 Awards given to Europe’s top technology firms
A graduate with Distinction from Harvard Business School, Bruce has written three books on business models for success, including Power Planning. He is a frequent lecturer and author.
Special Report: China
Bruce MilneCEOCorum Group Ltd.
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China Software/IT M&A Growth Issues
Language
Visas
Insularity
Experience
Leverage
Education
Connections
Trust
Global M&A Center
KOTRA – Global M&A Support CenterWe serve as a bridge between companies and investors.
2013. 3
Increase of Cross-Border M&A DemandKorea’s overseas investment amount : 25.5 billion USD (2011), CAGR : 13.9% (2006-2011)
Korea’s Cross-Border M&A total amount : 12.4 billion USD(2012), CAGR : 17.9% (2006-2012)
Among 1,361 SMEs, 12% hope to pursue cross-border M&A (KOTRA Internal Research)
Difficulties that Korean SMEs face1
Lack of deal information(32%)
Valuation of potential targets(18%)
Funding(17%)
Lack of experience(15%)
Others(18%)
New Government Pledge (K-move)Activation of the M&A market and outbound M&A support
Support a venture businessand overseas expansion
Attract overseas VC
Source : 1. Korea Federation of Small and Medium Business
Establishment of Global M&A center
Access to Korean Companies
100+ industrial associations
10,000 annual clients of KOTRA300,000 companies of the Korea Chamber of Commerce and Industry
Global Network119 overseas branches called Korea Business Centers(KBCs) in 81 countriesRelationships with international investment Promotion Agencies andTrade Promotion Organizations (e.g. Select USA, Germany Trade & Invest, JETRO, etc.)
Working PartnersLPs: National Pension Service(NPS), Korea Finance Corporation(KoFC).Korea Post, Korea Investment Corporation(KIC), etc.GPs: 50+ domestic PEF operators and 50+ foreign investors(e.g. Korea Development Bank (KDB) PE, MBK Partners, IMM, H&Q, etc.)
Strategic partnerships with investment and commercial banks as well asM&A advisories, including law firms, accounting firms and boutiques(e.g. Woori Bank, Samsung Securities, Kim&Chang, Samil PWC, etc.)
Our Network
As trusted and supporting government institution we have an extensive network
M&A Matching ServiceDeal Sourcing Deal Execution Coordination
Identify potential investorsSearch promising dealsTarget screeningIntroduce qualified companies
Support Pre-valuationMatch with advisory firms and DD institutions
Introduce M&A financing institutions
Information ServiceBreaking news & deal opportunities regarding cross-border M&A :
Global M&A Center blog (www.privateequitykorea.com)
Weekly M&A e-mail newsletter
Support the retainer fees(50%, up to USD 30,000 total)
Conference & ForumKorea M&A Plaza FIW(Korea PE/VC Forum) Korea PE insight
Our Services
Co-investment opportunities
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Global M&A Center, KOTRAWe serve as a bridge between companies and investors.
KOTRA HQ, Seoul, KoreaPark, JiunTel : 82-2-3460-7627 / E-mail : jiunpark@kotra.or.kr
Wanninger, JenniferTel : 82-2-3460-7536 / E-mail : jwanninger@kotra.or.kr
www.privateequitykorea.com
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