Upload
elong3102
View
221
Download
0
Embed Size (px)
Citation preview
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 1/31
USA Switzerland Germany France United Kingdom Canada Norway Brazil
www.corumgroup.com
M&A MonthlyM&A Monthly ± ± June 2010June 2010Tech Acquisition Frenzy
Tax ImpactEMC Live Report
Thursday, June 10, 201010:00 am PT
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 2/31
Corum Group Presentation 2
Agenda
M arket Overview
Tech Acquisition Frenzy
Recent Corum Transactions
Tax Impact
Corum M& A Update
EM C Live Report ± M att Olton, VP Corp Dev
Closing Comments - Q & A
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 3/31
Corum Group Presentation 3
P resenters
Dougan M ilneDirector of ResearchCorum Group Ltd.
M ark ReedExecutive Vice PresidentCorum Group Ltd.
Bruce M ilneCEOCorum Group Ltd.
Nat BurgessPresidentCorum Group Ltd.
M iro ParizekM anaging Director Corum Group Int¶l, Sàrl
Jeff BrownVice PresidentCorum Group Ltd.
M att OltonVP Corporate DevelopmentEM C Corporation
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 4/31
Corum Group Presentation 4
Logistics
Ask questions for Q & A sessionUse Q & A window on right sideSubmit to queue at any time
Ask ³all panelists´ ± see ³ask´ option above text entry boxThis event is being recorded
Rebroadcast June 17See ³Conferences and Events´ at www.corumgroup.com
If any audio problems todayDial +1.408.792.6300Enter meeting event number: 669 576 488
>> For today¶s presentation or more information, contact Pat Sultan([email protected], +1 425-455-8281 ext. 248)
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 5/31
Corum Group Presentation 5
A leader in the software industry, Bruce has founded or owned four software companies, including the largestvertical market software company, A M I, an Inc. 500 firm rated by IDC as the fastest growing computer-relatedcompany in the world.
He has served on advisory boards for M icrosoft, IB M , DEC, Comdex and Apple, and as board member/foundinginvestor in some of the most innovative firms in their field, including Blue Coat, Bright Star and Sabaki. Pastadvisor 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 200most influential individuals in the IT community in Europe. He was also the only American juror for the recentTornado 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.
Introduction
Bruce M ilneCEOCorum Group Ltd.
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 6/31
Corum Group Presentation 6
Asia
Japan¶s M aelstrom Swallows Another Leader ± 5 th in 4 yrs
Indian Court Finds 8 Guilty for Deadly Bhopal Gas Leak
China¶s Property M arket Freezes ± Speculators Not
Welcome
China¶s M ay Exports Rise 48.5%
Japan¶s Economy Grew at an Annualized 5%
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 7/31
Corum Group Presentation 7
Europe
Debt Concerns Drive EURO to Fresh Lows < $1.20
Cuts Will Affect µEveryone¶ ± Cameron (UK)
Ready to M ake Spending Cuts ± M erkel (Germany)
Hungary Vows to Avert Greece-Like Crisis
HSBC Bank Downgrades Europe, Excluding UK
German Factory Orders Unexpectedly Jump in April
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 8/31
Corum Group Presentation 8
Americas
Chile - Fastest Economic Growth in 14 years, Earthquake
Recovery
Brazil¶s Economists Cut 2010 Inflation Forecast
Copper Demand M ay Double in 15 Years, Codelco
Venezuelan GDP to Shrink 6.2%, M organ Stanley
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 9/31
Corum Group Presentation 9
U nited States
US¶s $13Trillion Debt Poised to Overtake GDP
Obama Borrowing Record Amounts to Fund Spending
U.S. Rebound Slowest Since 2002 on Euro Debt Woes
Raised the Odds of Double-Dip Recession to 1-in-4
Geitner Tells G-20: ³World Can¶t Rely on US Consumer´
Texas Instruments Raises Q2 Forecast
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 10/31
Corum Group Presentation 10
U nited States
Home Sales Decline, Suggests Trouble
Duration of Unemployment Rises to Record 34.4 Weeks
Buffett Expects µTerrible Problem¶ for M unicipal Debt
Wealthy Investors Bet on Property, Stocks ± Barclays
Gold Settles at Record
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 11/31
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 12/31
Corum Group Presentation 12
Tech Acquisition Frenzy
Nat BurgessPresidentCorum Group Ltd.
"The tech landscape is evolving at a fantastic pace," says NatBurgess, president of Corum Group, a mergers-and-acquisitionsadvisory firm. "Small, agile companies are developing tomorrow'ssolutions, and M&A is the only way for big companies to keep up."
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 13/31
Corum Group Presentation 13
M iro joined Corum in 1998 and has since advised clients in over a dozen countries on three continents. Hewas appointed M anaging Director of Corum Group International S.à.r.l. at the end of 2005 and isresponsible for Corum¶s international business.
He has advised privately held sellers and publicly traded buyers ranging from 30 to over 1,000 employeesin sectors as diverse as 3D-imaging, business performance management, compiler software, CR M ,document and content management, enterprise systems management, ERP, human capital management,storage area networks, supply chain management, telecommunications, video editing and various other verticals.
M iro has 25 years of experience in the software and IT industry, and prior to Corum had founded and ranthree software and IT related firms in the µ80s and µ90s, including a leading software distributor, North
American Software. He was a founding member of the German Software Association (VSI), since mergedwith the local M ulti-M edia Association (dmmv) to form the National Association for Digital Economy(BVDW), where he had served as a board member for over a decade.
Recent Corum Transactions
M iro ParizekM anaging Director Corum Group International S.à.r.l.
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 14/31
Corum Group Presentation 14
Recent Corum Transactions
Has acquired theEC M division of
Target Beta Systems EC M Solutions
Stock Symbol BSS (Frankfurt)
Year Founded 1983
Headquarters Augsburg, Germany
P rimary Category Document M anagement
P rimary Market Investment & Finance
Revenue Model
Revenues
License
¼ 28.8 million
Advisor Corum Group International, Sàrl
Miro P arizekM anaging Director Corum Group Int¶l, Sàrl
Frank Berger Regional Director, GermanyCorum Group Int¶l, Sàrl
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 15/31
Corum Group Presentation 15
M ark joined Corum in 1997. During 1999 he took a sabbatical to participate in the launch of an Internetstartup company, WorldStream Communications, as Vice President of Corporate Development. AtWorldStream, M ark developed the core business plan, was a driving force behind the emphasis on B2Bservices, and launched their strategic alliance program.
Prior to Corum, M ark served as Executive Vice President of a boutique investment bank where heconcentrated on providing private equity financing and arranging cross-border strategic alliances for hightechnology companies. M ark also served as Chief Operating Officer of a consulting company, advisingmultinational organizations such as Shell International Petroleum and the International Finance Corporation(World Bank Group) on new business development and foreign direct investment into Asia.
Before moving into the finance sector, M ark was a software developer and project manager buildingapplication software on DEC and HP mini-computers. M ark studied mathematics and computer science atSeattle Pacific University and the University of Washington. He has a B.S. in M athematics.
Recent Corum Transactions
M ark ReedExecutive Vice PresidentCorum Group Ltd.
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 16/31
Corum Group Presentation 16
Recent Corum Transactions
Has acquired
Target Apex Systems Pte. Ltd.
Stock Symbol Private
Year Founded 1981
Headquarters Singapore
P rimary Category Enterprise Solutions
P rimary Market Insurance
Revenue Model License
Advisor Corum Group Ltd.
Mark ReedExecutive Vice PresidentCorum Group Ltd.
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 17/31
Corum Group Presentation 17
Jeff joined Corum in 2007 as Regional Director in Houston, Texas. He has over 25 years of entrepreneurialand consulting experience building software and business services companies. He specializes ininformation technology for engineering, scientific and business applications. He also understands theenergy industry and multinational operations.
Jeff helped form and was President of Severn Trent Worksuite, a FTSE 100 subsidiary, which became theleading provider of enterprise and wireless workflow management software. Jeff was Vice President atIntelliGIS, a pioneer in geographic information systems and wireless computing. Additionally, he launchedWestern Hemisphere operations for Simon Petroleum Technology, a provider of petroleum reservoir management software, and was a member of the initial management team at GeoQuest Systems, whichbecame the leader in petroleum decision support systems.
Jeff began his career on the research staff at Columbia University and is a published author. He holds adegree in Geology from the State University of NY.
Looming U S Tax Impact
Jeff BrownVice PresidentCorum Group Ltd.
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 18/31
Corum Group Presentation 18
Revenue Growth to Offset U S LTCG Tax
2010 2011 2012 2013Revenue Target ($MM ) 10.00 11.59 13.06 14.53
Enterprise Value ($MM ) 18.00 19.13 20.13 21.25
YoY Revenue Growth --- 15.9% 12.6% 11.3%
EBITDA 20% 20% 20% 20%
EBITDA M ultiple 9.00 x 9.00 x 9.00 x 9.00 x
0.00
2.00
4.00
.008.00
10.00
12.00
14.00
1 .00
2010 2011 2012 2013
Inflation & Bank
Capital Gains Tax
2010 Revenue Base
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 19/31
Corum Group Presentation 19
Dougan is Director of Research at the Corum Group, Ltd in Seattle, WA. Previously, he spent 3 yearsbased out of Corum's European headquarters in Zürich, Switzerland. Prior to joining Corum's team in2005, Dougan spent 3 years working in the banking industry with Bank of America, and Citigroup's PrivateWealth business unit.
Before entering finance and investment banking, Dougan founded the successful garment distributionbusiness, Billions Apparel. In 2006, he started an advertising company serving the motorcycleindustry, M odo M arketing. Dougan has a Bachelors degree in Business Economics from the University of San Diego (USA).
Corum M&A U pdate
Dougan M ilneDirector of ResearchCorum Group Ltd.
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 20/31
Corum Group Presentation 20
P ublic Markets
40.00
50.00
60.00
70.00
80.00
90.00
100.00
110.00
120.00
May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10
Nasdaq S&P Tech Dow
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 21/31
Corum Group Presentation 21
M&A Activity ± May
Number of Software and IT M& A Transactions
1 58
3¡
3 ¢ £
3¤
¡
¤
5
¥ 3 ¥
8
¤
5¤
100 1 5 0 200 2 5 0 3 00 35 0 400
May
2010 2009 200 8 2007 2006 200 5 2004
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 22/31
Corum Group Presentation 22
M a - M a -
# f ansacti ns
# f Meg a e als
La ge st e al $ , $ ,
ver age e al ize $ $
Me dian e ller ize $ $
# VC backe d Exits
% erm s Undiscl s e d % %
ll Cash (ann unc e d) % %
% arge ts ere ublic % %
% ublic Bu er s % %
Corum Index ± M&A Statistics
*$ values in millions
Corum Index
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 23/31
Corum Group Presentation 23
Horizontal Application Software Market
P ublic Valuations Deal Spotlight:
Sector: CollaborationTarget: CubeTreeBuyer: SuccessFactors, Inc.Transaction Value: $50mStructure: Cash, Stock, Earnout
Comments:Talent & TechnologyCollaborative SaaS
Expanding PortfolioMay-
¦
9 Jun-¦
9 Ju § -¦
9 Aug-¦
9 S¨ p-¦
9 Oct-¦
9 Nov-¦
9 D¨ c-¦
9 Jan-1¦
F¨ b-1¦
Ma © -1¦
Ap © -1¦
May-1¦
EV/EBITDA 9.
9 9.99 11 .¦
6 11 .¦
6 12.6
12.26 11 .66 11 .6
1¦
.
6 11 .16 12.
1 12.¦
11 .
9
EV/S 1 .
5 1 .5¦
1 .58 1 .9
2.
1 2.2 1 2.29 2.
1 2.
8 2.
2 2. 11 2.2
2. 12
Ho onta
Ap p cat onSo t ! a "
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 24/31
Corum Group Presentation 24
Vertical Application Software Market
P ublic Valuations Deal Spotlight:
Sector: Energy + M iningTarget: M atrikon, Inc.Buyer: Honeywell InternationalTransaction Value: $142mEV/S: 1.8x revenuesStructure: Cash + Stock
Comments:Vertical Targeting
Brand Name in Energy +M
iningFoundation for VerticalsMay -
#
$
%
& ' -#
$
%
& ( -#
$
)
&
0 -#
$
1
e 2 -#
$ O3
4 -#
$ 5 6
7 -#
$ 8 e 3 -#
$
%
an - 9
#
@ e A - 9
#
Mar - 9
# )
2 r- 9
#
May - 9
#
EB
C
ED E T8
)
F . $ $
G
H . 9 F
G
H . $ 9
G
$ .#
9
G
$ . I P
G
H .Q
P
G
H . $ R
G
$ . S
Q
G
$ . I F
G
9
#
. I
#
G
9 9 . 9 S
G
9 9 . S 9
G
9 P . S I
G
EB
C
S9 .
Q #
G
9 . S 9
G
9 . S 9
G
9 . R R
G
9 . H
#
G
9 . S F
G
9 . H P
G
P .#
9
G
9 . $
#
G
9 . $ P
G
9 . $ S
G
P . P P
G
9 . H R
G
T e rticalApplicationSoftwar e
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 25/31
Corum Group Presentation 25
Consumer Application Software Market
P ublic Valuations Deal Spotlight:
Sector: RetailTarget: Buy.comBuyer: Rakuten, Inc.Transaction Value: $250mStructure: Cash
Comments:Roller Coaster M assive Retail Footprint
Geographic ExpansionM aU
V
W
X J Y `
V
W
X J Y lV
W
X
a
Y g-09 S e b -09 O c c
-09 Nov -09 D ec -09 Ja ` -10 F e d -10 M ar-10 Apr-10 M aU -10
Ee
/E f g TDA 2.83 x 4.47 x 4.57 x 4.27 x 5.88 x 5.23 x 5.71 x 4.91 x 4.89 x 4.67 x 6.25 x 7.96 x 10.99 x
Ee
/ S 0.50 x 0.53 x 0.53 x 0.59 x 0.83 x 0.60 x 0.61 x 0.70 x 0.66 x 0.73 x 0.77 x 0.93 x 0.82 x
Co h sum e r
Ap p lica i io h
So p q wa r e
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 26/31
Corum Group Presentation 26
Infrastructure Market
P ublic Valuations Deal Spotlight:
Sector: Disaster RecoveryTarget: Double-TakeBuyer: VisionSolutions (ThomaBravo)Transaction Value: $242m2.4x TT M Revenues14.4x TT M EBITDAStructure: Cash
Comments:
PrivatizedPE-BackedM arket Consolidation
M ayr s t
u
v w r s t
u
v l r s t
x
v
y
r s t r s t
r s t o
r s t r s t
u
a w -10 Feb-10 M a -10x
-10 M ay-10
E
E T
. t
.
t . t 10 . t 10 .
10 . 1
t . 11 . 1 10 .
t . 10 . 11 .02 10 .
E
1 . j 2 k 1 . l 2 k 1 . m j k 2 .02 k 2 .14 k 2 .20 k 2 .27 k 2 . n 7 k 2 . n 0 k 2 .24 k 2 . n m k 2 . j 7 k 2 .21 k
Io
as
e
o
a e
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 27/31
Corum Group Presentation 27
Internet Market
P ublic Valuations Deal Spotlight:
Sector: Internet ContentTarget: M otortopia.comBuyer: Beckett M ediaTransaction Value: N/AStructure: N/A
Comments:Building on the BrandM arket Presence
Expanded PortfolioMay -0 9 J un -0 9 J ul -0 9 Au g-0 9 Se p-0 9 Oc t-0 9 No v-0 9 De c -0 9 J an -1 0 F eb-1 0 Mar-1 0 Ap r-1 0 May -1 0
EV/EBITDA11.78 x 11.81 x 13.32 x 13.02 x 15.80 x 11.81 x 13.03 x 15.13 x 14.40 x 14.52 x 15.89 x 15.82 x 13.31 x
EV/S 2.26 x 2.30 x 2.48 x 2.60 x 2.70 x 2.19 x 2.45 x 2.55 x 2.34 x 2.36 x 2.54 x 2.74 x 2.42 x
Internet
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 28/31
Corum Group Presentation 28
IT Services Market
P ublic Valuations Deal Spotlight:
Sector: BPOTarget: Stanley Inc.Buyer: CGI GroupTransaction Value: $951m1.2x TT M Revenue15.5x EBITDAStructure: N/A
Comments:
Acquiring Gov. ContractsPush into US FedMay-09 Jun-09 Jul -09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10
EV/EBITDA 5.51 x 5.24 x 5.56 x 5.67 x 6.66 x 6.10 x 6.16 x 6.60 x 6.44 x 6.37 x 6.97 x 7.33 x 6.49 x
EV/S 0.61 x 0.63 x 0.68 x 0.68 x 0.73 x 0.73 x 0.63 x 0.67 x 0.81 x 0.64 x 0.83 x 0.85 x 0.74 x
ITServices
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 29/31
Corum Group Presentation 29
Market Tracker ± Top Tech
Top Buyers June 1, 2009 June 1, 2010 % Change Acquisitions
AAP L $139 35 $260.83 87.2% 5
EM C $12 42 $18.69 50.5% 4
M T $19 31 $26.46 37.0% 10
C CO $17 46 $23.35 33.7% 7
HPQ $34 35 $45.58 32.7% 4
ORCL $18 58 $22.64 21.9% 11
IBM $108 37 $127.41 17.6% 11
GOOG $426 56 $493.37 15.7% 19
CA $17 96 $19.63 9.3% 5AP $43 94 $44.38 1.0% 6
YHOO $16 58 $15.02 -9.4% 7
YMC $16 01 $13.84 -13.6% 5
Average Change 23.6% Total 94
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 30/31
Corum Group Presentation 30
M atthew Olton is Vice President, Corporate Development of E M C Corporation and leads E M C¶s globalmergers and acquisitions and strategic investments practices, as well as E M C¶s acquisition integrationfunctions.
Since joining E M C, M att has led, in various capacities, more than $12 billion in acquisitions for E M C andhas played a direct role in transforming E M C into one the world's leading technology companies. M attmoved to his current role in 2006 from E M C¶s Office of the General Counsel, where he was AssociateGeneral Counsel, overseeing acquisitions, investments and other matters.
Prior to joining E M C, M att was a corporate attorney at Skadden Arps and Goodwin Procter in Boston.
EMC Live Report
M att OltonVice President, Corporate DevelopmentEM C Corporation
8/8/2019 EMC - Tech M&A Monthly
http://slidepdf.com/reader/full/emc-tech-ma-monthly 31/31
Corum Group Presentation 31
U pcoming Corum Events
June 17: Rebroadcasts ± M&A U pdateWebinar
June 22: Dallas ± M B
June 24: Houston ± M B
June 24: Special Event (CapitalRoundtable ± New York)
June 29: Austin ± M B
July 8: M&A U pdate Webinar
July 17: Special Event (SIIA Conference ± Dallas)
July 19: Special Event (Casual ConnectGames ± Seattle)
July 21: Special Event (Softletter SaaSUniversity ± Washington DC)
M erge Briefing ( M B)Selling Up Selling Out (SUSO)
www.CorumGroup.com